CWCB Annual Report December 1997

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I I TABLE 2, Performance Audit Recommendations ••- REC.� -�; �, �t�� No . iec�mmendafion,Summary-- r s : • - Progress as�of�une�=3O,.s1997°. -;� 1 Develop a formal,systematic program or process which Completed. The Board agreed to implement this provides a long-and short-term framework for the use of recommendation by 12/93. The Board identified 5 long- the Construction Fund. This process should include term goals at its January 1993 meeting. The Board attended developing broad policy statements,establishing goals a retreat in October 1993 to develop a draft Long Range and implementation plans and developing performance Plan. The Board's Long Range Plan was formally adopted measures. on September 14, 1994 and revised July 1995. 2 Develop and implement an effective process for long- Completed. The Board agreed to implement this term financial planning of Construction Fund monies. recommendation by 12/93. The Board staff worked with This process should include establishing long-term DNR accounting to set up a better method of systematically funding needs,assessing current sources of funds,and reporting revenues. All accounts have been reconciled. A projecting future funding requirements that may be water user needs survey was completed in July 1993. A needed to meet long-term goals. Long-Term Financial Projection for the Construction Fund was completed in December 1993 and is revised annually. 3 Establish guidelines which include setting loan interest Completed. The Board agreed to partially implement this rates to reflect market interest rates. The Guidelines recommendation by 7/93. The Board approved new should be reflected in the projects that will be authorized "standard" interest rate guidelines at 2 basis points below during the upcoming legislative session. the then 30-year Treasury Bond rate for 30 years at its May 6-7, 1993 meeting. A project evaluation matrix is being used on new projects. 4 Charge interest on cash disbursements made to project Completed. The Board agreed to implement this sponsors during the construction phase of projects. recommendation by 12/93. The Board adopted this new Interest charges could be added to the principal amount policy at its May meeting. The Contracts for future of the loan and financed over the term of the loan. construction projects will require interest during construction. 5 Improve Board monitoring of projects by contacting Ongoing. The Board agreed to implement this project sponsors at least annually to determine if project recommendation by 12/93. Letters are sent in Sept. to Nov. sponsors plan to go ahead with the projects. Responses to the sponsors for certain authorized but not yet constructed should be documented and reported to the General CWCB projects. The staff evaluates the status of the project Assembly on an annual basis. and determines if it should be deauthorized. 6 Develop and implement procedures which would recover Completed. The Board agreed to implement this the Board's share of feasibility study costs for projects recommendation by 10/93. The Board adopted a new policy that are not constructed. Alternatives should be at its May 1993 meeting that stated the Board's participation evaluated,including payback over a period of time. in feasibility study costs must generally be repaid whether the project is constructed or not. The Guidelines have been revised to reflect this policy. 7 Develop methods to demonstrate Board compliance with Completed. The Board agreed to implement this procedures it has established,including documentation of recommendation by 7/93. A project checklist was prepared all Board reviews and approvals. by staff in July 1993. A standard contract information sheet was developed. Several procedures have been written down. Insurance certificates and UCC documents are tracked. A computer tracking system was designed in 1997. t CWCB FY97 Annual Report,page 14 1