State administrative regulations require that all projects financed with state bonds comply with project closeout procedures. The main objectives of the closeout procedures are to ensure the following:

• The project is complete with all state funds to be used are claimed and all disputes regarding project costs, if any, resolved;
• The project scope is consistent with that approved by the Department of Finance (DOF) and the Legislature;
• FUSION has been updated to show final project costs per the JCAF 32 and final Quarterly Report;
• The final JCAF31 in FUSION is consistent with the project as depicted in the district’s certified Space Inventory; and
• The district followed Public Contract laws and regulations in the construction of the project.

There are two phases in project closeout process involving two change requests in the FUSION Project module.

1. Project “Online” Change Request: Formal notification from the district that the facility is “Online” (i.e., occupied/in use) and the space created by the project, if any, included in the district’s Space Inventory.
2. Project “Completed” Change Request: Formal notification from the district that the project is “Completed,” i.e., all state funds have been claimed, all disputes resolved, and the district has received a “Certification & Close of File” letter on the project from Division of State Architects (DSA).

Project “Online” Change Request

District creates a change request in FUSION and select “Online” as the option. This is formal notification from the district that the facility is “Online” (i.e., occupied/in use). The space created by the project, if any, will be included in the district’s Space Inventory.

The following information is provided by the district via a Change Request in FUSION:

1. Final project space is entered into Space Inventory;
2. The JCAF 31 is to be revised to reflect the final project space;
   • The JCAF 31 has to match with the project space entered into the space inventory.
   • FUSION will remove the space inventory from the district’s 5-Year Plan in the Planning Module in FUSION when the Change Request is approved.
   • This JCAF 31 in the Project Module will provide a final record of the project space as it was constructed.
   • DO NOT zero out the project space.
3. Attach to the Change Request a side-by-side comparison of the project space as approved at Working Drawings and as entered into the JCAF31 and the district’s Space Inventory.
4. All Notice(s) of Completion is to be attached to the Change Request.
   • Please note that projects using the Multi-prime delivery method will need to attach all Notices of Completion for all multi-prime contractors.
5. Submit the Change Request to the Facilities Planning Unit (FPU) for approval.
6. E-mail the district’s FPU Specialist to alert them that a Change Request is pending approval.

Project “Completed” Change Request

The district cannot submit a Change Request in FUSION to show the project as “Completed” until:

1. Any costs in conflict between the district, state, and/or other parties have been resolved;
2. The district has finished its efforts to seek state reimbursement of expenditures from the state;
3. The project fiscal accounts at the state level can be closed and any remaining funds can be reverted; and
4. The district has received DSA’s “Certification & Close of File” letter on the project.

Once the project is verified as completed by the district by following the steps mentioned above, create a change request in FUSION and select “Completed” as the option after the “Online” Change Request has been reviewed and approved.

The following information is provided by the district via a Change Request in FUSION:

1. Letter on district letter head is to be attached to Change Request certifying that:
   • The project is complete, and all reimbursement claims are settled;
   • The project was constructed as approved by DOF and the Legislature and as depicted in the district’s certified Space Inventory Report;
   • The district followed Public Contract law in the construction of the project.
   • Per the State Treasurer’s Office, the district will retain all project financial records for period of no less than 35 years, including DF 14D forms, expenditure records and claims information.
2. Side-by-side comparing JCAF31 at approval of Working Drawings and the project as shown in the district’s space inventory; (if changed)
3. The JCAF32 is to be revised to reflect final actual project costs (both state and local) and the project calendar.
4. The final Quarterly Report is to be submitted. The costs should be consistent with those shown on the revised JCAF32.
5. The JCAF32 and Quarterly Report should be consistent with the claims shown in FUSION.
6. DSA documents required and attached:
7. DSA Certification & Close of File Letter;
8. DSA 6 Forms (including: DSA6; DSA6 A/E; and DSA-168)
9. Please note that projects using the Multi-prime delivery method will need to attach all DSA 6 forms for all multi-prime contractors. (link DSA 6, DSA 6 A/E, DSA168 forms)
10. Space Inventory Report 17 page(s) from the district’s latest certified Space Inventory;
11. Final list of equipment purchased
12. Submit the change request to FPU for approval.
13. E-mail the district’s Specialist to alert them that a Change Request is pending approval.

Appendix A: District Project Closeout Checklist

College:

¹Projects using multi-prime delivery method need to attach all NOCs from all contractors.

Appendix B: Sample Closeout Letter

Dear XXXX:

The district has completed the “Project Name” (DOF Project ID: XXXXX). I certify the following:

• the project is complete, and all state reimbursement claims are settled;
• the space was constructed as approved by the Department of Finance and the Legislature and as depicted in the district’s certified Space Inventory Report;
• the district followed Public Contract law in the construction of the project; and
• per the State Treasurer’s Office, the district will retain all project financial records for a period of no less than 35 years, including DF14D forms, expenditure records, and claims information.

We have submitted a Change Request(s) in FUSION with the following:

1. DSA6 Forms - (DSA6; DSA6 A/E; and DSA-168);
2. DSA Certification and Close of File Letter;
3. Revised JCAF 31 showing final project space;
4. Side-by-Side comparing JCAF 31 at approval of working drawings and the project as shown in the district’s space inventory;
5. Space Inventory Report 17 page(s) for the project building(s) from the district’s latest certified Space Inventory;
6. Revised JCAF 32 showing final project costs;
7. Final Quarterly Report;
8. Notice of Completion; and
9. Final list of equipment purchased.

Sincerely,

Chief Business Officer or Designee

APPENDIX C: RECORD RETENTION

RECORDS RETENTION INFORMATION (SOURCE: STATE TREASURER’S OFFICE)

How long must records be retained? For IRS audit purposes, records must be retained until at least three years after the bonds issued to finance the projects are paid off. Since most GO bonds are issued with a 30-year final maturity and since there can be a period of time between when a department disburses funds from its PMIA loan account and when that expenditure is included in a bond sale, the STO requests that departments retain records for 35 years after the date of expenditure.

What records must be retained? Records that should be retained include the following:

1. Documentation evidencing the expenditure of all GO bond funds, including the following: (a) the timing and amount of the expenditures on the projects; (b) the person to whom the payment was made; (c) whether the transfer of funds was a grant, loan, or direct expenditure;

(d) the asset financed by the transfer of funds and its expected useful life; and (e) the amount and timing of any grant repaid to the department.

1. Documentation evidencing private activity use of bond-financed assets, including the following:
   • any private ownership, leasing, or other private use contracts relating to the financed assets;
   • any private payments received with respect to the assets; and (c) the amount loaned to a nongovernmental entity. Note: private activity use documentation does not need to be maintained for grants.

In what format must the records be kept? Records may be maintained in a hardcopy format or an electronic format (if certain requirements are satisfied). The IRS' general requirements for an electronic storage system are as follows:

1. The system must ensure an accurate and complete transfer of the hardcopy books and records to the electronic storage system and contain a retrieval system that indexes, stores, preserves, retrieves, and reproduces all transferred information.

1. The system must include reasonable controls and quality assurance programs that: (a) ensure the integrity, accuracy, and reliability of the system; (b) prevent and detect the unauthorized creation of, addition to, alteration of, deletion of, or deterioration of electronically stored books and records; (c) institute regular inspections and evaluations; and (d) reproduce hardcopies of electronically stored books and records that exhibit a high degree of legibility and readability.
2. The information maintained in the system must be cross-referenced with the department's books and records in a manner that provides an audit trail to the source document(s).

(Records Retention Information – How long records must be kept, what records must be kept, and what format records must be kept)