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1 <br /> 14 Construction Fund Loan Program Performance Audit-September 1998 <br /> thoroughly explore other sources of financing before they are eligible for funding ' <br /> through the Program. We found that between Fiscal Years 1994 and 1998,the Board <br /> approved and the General Assembly authorized 14 projects for$2.6 million that were <br /> ultimately built using other funding sources. <br /> Finally,we also observed problems that have resulted from management deficiencies <br /> in the Board's loan administration processes. Specifically, over a third of the <br /> borrowers were delinquent (i.e., 15 days or more overdue) in making their annual <br /> loan payments during Fiscal Years 1995 to 1998. This has resulted in the State's I <br /> forgoing over$514,000 in interest revenue. <br /> We reviewed the Board's annual reports,budget requests, and other key documents ' <br /> and found that there are no formal goals,objectives,and performance indicators for <br /> the day-to-day operations of the Program. Without this type of formal direction, it <br /> is unlikely that the Board will be able to make significant improvements in its <br /> management of the Program. <br /> 1 <br /> Recommendation No. 1: <br /> The Water Conservation Board and its staff should set forth goals and objectives for <br /> managing the Construction Fund Loan Program and closely monitor the progress of <br /> implementing procedures that will improve Program operations. Also, the Board <br /> should make periodic reports on the progress of Program improvements to interested <br /> parties, including the members of the Legislative Audit Committee. <br /> Water Conservation Board Response: <br /> Agree. The Board has established programmatic goals and objectives for I <br /> implementation of its Construction Fund Loan Program responsibilities in its <br /> Long Range Plan,and the staff presents increasingly better information to the <br /> Board at its regular meetings regarding implementation concerns. More <br /> extensive management goals and specific operational objectives will be <br /> developed by July 30, 1999, to provide better means to assure that the <br /> Program is operating within an appropriate framework. These new goals and <br /> objectives will be presented to the Board based upon 1) the review of <br /> workload allocation and priorities that is in progress within the agency, and <br /> 2)the comparison of the CWCB program structure with other State agencies <br /> with similar programmatic responsibilities. <br />