Report of State Auditor 1999

• Year: 1999
• Title: Report of the State Auditor
• CWCB Section: Finance
• Description: Evalation of Actions Taken on the 1998 Colorado Water Conservation Board Construction Fund Loan Program as of December 1999
• Publications - Doc Type: Tech Report

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12 Evaluation of Actions Taken on Colorado Water Conservation Board as of December 1999 1
establish a process that ensures any residual funding is immediately deauthorized upon project 'I
completion.
Water Conservation Board's Report Response
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(September 1998):
Agree. The duration of funding assistance has been reviewed annually by the Board and the
General Assembly. The Board has not considered rigid time limits for the Construction Fund
loan approvals and, given the political nature of some projects, it seems appropriate to at
least present and evaluate options to the Board before proposing an amendment to the statute
or to the Board's Guidelines. The Board will present its assessment of this issue,along with
any recommended action, to the Governor and the General Assembly by February 1, 1999.
The Board's Guidelines provide that, in September of each year,the Board will review the I
status of all previously authorized projects which are as yet not started or are unfinished.
The Board will review for reasonable progress on all projects which have: (1) not started
24 months after authorization, and(2)projects still in process 36 months after authorization. I
A number of funding authorizations (with both small and large funding residuals) have
accumulated over the past 20 years, and the CWCB and the Department's Accounting 1
Section staff have been working to identify those associated with completed projects. We
will continue to rely upon the legislative process as we are able to determine that the
remaining funds are not needed. t
Implementation Date: February 1999.
Water Conservation Board's Update (October 1999):
Im p lemented. The CWCB Board adopted a policy titled Construction Fund and Severance
Tax Perpetual Base Account Project Time Limits at its September 27, 1999, Board meeting
that addresses the auditor's project time limit concerns and recommendations. Residual
funds from completed projects are returned to the Construction Fund via funding contract
amendments. i
Office of the State Auditor's Evaluation of Actions Taken
(December 1999): 1
In progress. In response to our audit,the CWCB created a policy that establishes time limits
for project sponsors to use monies authorized from the Construction Fund. Under the policy
the Board must review the status of all projects with contracts that have not been fully
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