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<br />COLORADO RIVER STORAGE PROJECT
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<br />have been prepared from the records of the Bureau of Reclamation.
<br />Our opinion oni the financial statements appears on page 56,
<br />With respect to the Bureau's accounting procedures for activities in
<br />the upper ColoJiado River basin, the principal deficiency disclosed by
<br />our audit relati's to a lack of acceptable and consistently applied
<br />procedures, for recording interest during construction, Weare
<br />recommendmg that the Secretary of the InterIOr adopt and apply
<br />consistently an I acceptable policy for recording interest during con-
<br />struction. I
<br />Accounting ahd financial policy is discussed on pages 52 ,through 55
<br />of this report. '
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<br />COLORADO RIVER STORAGE PROJECT AND PARTICIPATING PROJECTS
<br />
<br />AUTHORIZATION In-y THE CONGRESS
<br />The Colorad~ River Storage Project (hereinafter sometimes referred
<br />to as the Stora~e Project) and participating projects were authorized
<br />by the Colorado River Storage Project Act, approved April 11, 1956.
<br />This legislation I provided for the initiation of a comprehensive plan
<br />for development of the water resources of the upper Colorado River
<br />basin for I?urpos:es of river r~gulation and storage of wa~er for beneficial
<br />consumptIve use. It prOVIded also the means by whICh the states of
<br />the upper basin can utilize their water apportionments cousistent
<br />with the provisions of the Colorado River Compact of November 24,
<br />1922, which has, been approved by all the seven Colorado River basin
<br />states. "
<br />, The act auti\.orized the construction of four initial units of the
<br />Colorado RiveriStorage Project consisting of dams, reservoirs, power
<br />plants, ,transmjssion facilities, ,and appurtenant works and of'11
<br />additional recl~mation projects (including power-generating and
<br />transmission fafilities related thereto) to be known as participating
<br />projects. Also, it established priority for the investigation and'
<br />completion ofp\anning reports on 25 additionalparticipatingprojects.
<br />The act authorIzed appropriations not to exceed 760 million dollars
<br />for carrying out the purposes of the act, .'
<br />At the time the Congress was considering passage of the Colorado
<br />River Storage (Project Act, the Bureau of 'ReClamation es'timated
<br />that it would cqst $1,655,529,000 to construct the four storage units,
<br />electric transmission facilities, the 11 participating yroj ects , authorized
<br />for cOnstruction, and the 25 projects that were to be 15iven priority in
<br />the',comPletion lof planning reports, These, cost estImates are sum-
<br />marized as follows:' '
<br />
<br />4 Initial storage' units and transmission facilities of the Storagll
<br />PI'QJect______.____~_.____________,-----__~__________"_.~C___
<br />11 Partlolpo;tlng projects___ .~__.____H___H_h____________________
<br />
<br />Total f!uthorlzed for const~llCtlon"___M._~___n_______~__
<br />25 Projects on whlch planning reports Me to be gIven priority.___
<br />
<br />Toralestlmated COSt._n_n__n_.h________________n_._
<br />
<br />$629,304,000
<br />304,366,000
<br />933,660,'000
<br />721,869,000
<br />-~
<br />$1,666,629,'00'0
<br />
<br />These estimates! were based generally on 1,953 price level., ,',' . .
<br />, In t~e Bureau's Fel;lruary 1 ?58 finanCIal and eC?llomlcal~nalysl~,
<br />the estImated total constructIon co~ts of the umts authOrIzed for
<br />construction were $992,174,000 or anmcreaseof$58,514,OOO over the
<br />estimates con~iaered by the Congress prior to passage of the act,
<br />The increase w~s due primarily to updating the estimates to refiect
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