Generally, construction projects undertaken by school districts in New York State are financed in part by state aid. The Education Department's Facilities Planning unit approves state aid for school-district construction projects outside New York City. This report presents findings of an audit that evaluated whether the Unit management's oversight assured that school construction projects were cost effective and in compliance with the State Building Code. The State of New York Office of the State Comptroller found that although unit oversight provides assurance that building code requirements are met, supervision is not intended to evaluate the cost effectiveness of school construction projects. As a result, project costs may be higher than necessary. To significantly reduce both the construction costs and building aid payments, the unit is recommended either to use a value engineering process to review school building plans; to use standardized school building plans; or to set limits on the total amount of building aid available. The report concludes that it would not be cost-effective to transfer unit oversight responsibilities to local governments. Appendices contain a list of major contributors to the report and the comments of Education Department officials. (LMI)