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I <br /> 24 Construction Fund Loan Program Performance Audit-September 1998 <br /> In 1993, a loan for the Conejos Water Conservancy District to purchase the <br /> Platoro Reservoir(an existing federal water project)was recommended by the <br /> Board and approved by the General Assembly in order to give Colorado <br /> water users much greater control over their water supply and save them <br /> significant expense. <br /> The Board has pursued many ways of assisting towns, special districts, <br /> irrigation companies, and many others in financing their activities to meet <br /> their water supply goals,and has always coordinated closely with community I <br /> leaders in recommending projects for funding. It is also significant that the <br /> General Assembly has consistently endorsed the Board's funding <br /> recommendations (last year's funding recommendations were reviewed and <br /> approved by two legislative committees in both the House and the Senate). <br /> I <br /> Project Funds Are Not Deauthorized in a <br /> Timely Manner <br /> Each year the Board must obtain approval from the General Assembly for those <br /> project loans in excess of$100,000. Project loans under $100,000 do not require <br /> legislative approval and can be authorized directly by the Board. When a project is <br /> approved through either manner, monies from the Fund are earmarked. Once <br /> earmarked,these funds are not available to finance other projects. If a project is not <br /> constructed, the Board eventually deauthorizes the funds or asks the General <br /> Assembly to deauthorize them so that the money can be used for other projects. <br /> We found that the Board is not seeking deauthorizations in a timely manner. Since <br /> 1980 the Board has sought deauthorizations of 59 projects totaling about$33 million. <br /> Many of these projects were authorized for five or more years before they were <br /> deauthorized, even though most successful projects are finished within 3.3 years. <br /> Specifically, 28 of these projects totaling $16.6 million were authorized for more <br /> than five years and 12 were authorized for more than ten years. Further, we noted <br /> that one$5.6 million project was authorized in 1983 and deauthorized 15 years later <br /> in 1998. <br /> The Board also has many projects that are currently authorized that may need to be <br /> deauthorized. Specifically,there are over$26 million in project funds that have been <br /> authorized for over four years,but project construction still has not begun. Because <br /> the average time from approval to project completion is 3.3 years, at least a portion <br /> I <br /> I <br />