Report of State Auditor 1999 - Laserfiche WebLink

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1 22 Evaluation of Actions Taken on Colorado Water Conservation Board as of December 1999 1 Water Conservation Board's Report Response , (September 1998): Agree. CWCB staff, in cooperation with the Department of Natural Resources, is in the g p P , process of reviewing the structure of similar programs at other public agencies and reevaluating Construction Fund Loan Program workload allocation and priorities. We may submit a decision item to add this staff capability. These reviews will be completed by June 30, 1999. 1 Implementation Date: June 1999. Water Conservation Board's Update (October 1999): 1 p ( ) In progress. Draft procedures have been developed to ensure that all borrowers comply with I general liability insurance requirements. These procedures are currently being tested and should be implemented by January 1, 2000. All active loans have been reviewed relative to insurance requirements, resulting in a current 92 percent compliance rate. It has also been determined that 66 percent of the borrowers without specific contractual insurance requirements are currently fully insured. Office of the State Auditor's Evaluation of Actions Taken (December 1999): 1 In progress. The CWCB has developed a procedure for handling general liability insurance requirements. The purpose of this procedure is to ensure that all construction loan borrowers I maintain general liability insurance in accordance with the terms of the loan contracts. Under the procedure, when a contract is completed,the staff verify receipt of the insurance certificate and additional insured endorsement,and follow up on any information that is not received. This information is entered into the Construction Fund Database, and monthly reports are prepared to show which insurance policies are expiring so that the borrower and/or insurance agent can be notified. The CWCB also provided us with a report that shows all loan contracts, their insurance requirements, and whether the requirements have been met. According to the report, the CWCB has received certificates of insurance for 132 of the 144 contracts with insurance requirements (92 percent). We also conducted our own review of nine files to determine their completeness with regard to documentation of general liability insurance. We found all nine files contained the appropriate documentation. Although compliance rates have improved,the Board should continue its efforts to obtain any missing documentation so that it can achieve a 100 percent compliance rate with its insurance requirements. 1 I