Would you buy a house without first having it appraised and inspected? Of course not. If an agency acquires infrastructure without first performing an Acquisition Audit, they assume many of the same risks that you, as a homeowner, would assume in not taking these important steps.
An Acquisition Audit is the process by which an agency verifies the amount they are going to pay a developer for constructing public infrastructure by inspecting the many documents involved in the construction process to determine the actual cost of providing those facilities. The improvements are reimbursed from public funds and therefore an agency must establish that the price being paid is fair and justified.
5 Critical Questions to Ask about Acquisition Audits
- What is an Acquisition Audit and why is it important?
- What are the procedures and processes that must be followed?
- How will you define what is public versus what is private?
- Who should perform the audit?
- Are there any legal issues to consider?
Download this important whitepaper from Harris & Associates' Special District Finance team Senior Director, Alison Bouley, to learn more and help your agency avoid legal and political ramifications.