Lebo Citizens reader and Mt. Lebanon resident Richard Gideon has been keeping meticulous records of the high school project change orders. The list that I have in the sidebar has items that have been moved in and out of the contingency fund and then considered part of a different fund. The list will be corrected in the near future. Thank you, RG, for your update. - Elaine
High School Contingency Fund Accounting
...through March, 2015
Since the beginning of the high school renovation project to 16 March 2015, the Mt. Lebanon School District has spent $5,000,165.57 on change orders (CO's) whilst receiving refunds and/or insurance settlements of $682,131.66, resulting in a net total CO expenditure of $4,318,033.57. CO's are paid, with some exceptions, out of a contingency fund (CF) that was initially established at $4,276,000; however, the fund was theoretically exhausted in March, 2015, at which time the District infused it with $538,000 from other accounts, bringing the CF account total to $4,814,000.00. The following figures have been calculated through the end of March, 2015:
Total spent on CO's: $4,318,033.57 --breakdown--
Average expenditure (includes refunds): $16,544.19
Median expenditure (includes refunds): $10,002.00
Number of CO's & refunds to date: 261
Number of accounting periods (months): 34
Average cost per period: $127,000.99
Number of CO's: 243
Average CO: $20,576.81
Median CO: $10,921.00
Number of refunds/adjustments: 18
Average refund/adjustment: -$37,896.22
Median refund/adjustment: -$7,645.00
Contingency (initially $4,276,000.00 – add $538,000.00): $4,814,000.00
Balance: $495,966.43
% CF used: 89.70%
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The following figures are estimates based on the Construction Update for April*:
Projected April CO's: $47,356.00
Projected April CO total: $4,365,389.57
Projected CF Balance, April: $448,610.43
Projected total CF used, April: 90.68%
*I would caution readers not to assume that the announced CO's for any given month will be paid out of the CF until they are actually paid. The District has been shifting more and more of the costs of the new high school to other funds; such as "soft costs." In addition, it has happened that a particular CO is disputed, and therefore, even though it is "announced," it is not paid until a later date, is negotiated down, or is shifted to a different fund. Only the official list, published in the month following the CO's, shows what CO's were actually paid out of the CF.
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Last year I had predicted that the District would run out of money in its CF in either February or March, which is exactly what happened - although I was certainly not the only person to make such a prediction. With the infusion of new cash into the CF, and at the current rate of expenditure, it is likely the District has purchased four or five additional months of time.
Richard Gideon
