Managing Construction Risk in Independent Schools and Other Not-For-Profit Organizations with Formidable Integrity Monitoring

Guest Column By:

By CohnReznick LLP

Independent schools are continually challenged to maintain a sustainable financial model and better manage and maintain school facilities, while providing state of the art facilities that the students of today are demanding. A key financial mission of all educational institutions is to increase enrollment, maintain a solid reputation, and generate strong revenue. A prestigious reputation is built upon years of proper management and astute financial planning. However, the degree of separation between an institution’s good name and one that is tainted can be just one instance of fraud or misconduct.

After postponing capital expansion during the recent recession, independent schools are once again investing in facilities development programs. At the same time, the size and complexity of construction endeavors can increase the risk of fraud, waste and abuse in an industry that is already inherently vulnerable and under a tremendous degree of public scrutiny.

WHAT DOES COHNREZNICK THINK?

To combat fraud, waste, and abuse, independent schools and other not-for-profit organizations are reducing their risk of exposure by utilizing the services of integrity monitors. These independent advisors serve as stewards of program and project funds, ensuring funds are used as originally intended and ultimately protecting the integrity of the institution. As many independent schools enter a period of capital investment in construction facilities projects, it is simply best practice to adopt an integrity monitoring program early on that will safeguard against any threat of misconduct and risk to the institution’s name.

Read our full alert, which further outlines how not-for-profit organizations can benefit from an integrity monitoring program, by clicking here.