Memorandum Construction Fund Workshop item g

• Board Meeting Date: 1/19/1999
• Description: Workshop item g, January 27-28, 1999 Board Meeting Water Project Construction Loan Program Delinquencies, Defaults, and Collections
• Board Meetings - Doc Type: Meeting

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
721 Centennial Building
1313 Sherman Street -•� '
Denver,Colorado 80203
Phone: [phone]
FAX: [phone] Bill Owens
Governor
Greg E.Watcher
Executive Director,DNR
Peter H.Evans
Acting Director,CWCB
MEMORANDUM
TO: Colorado Water Conservation Board Members
FROM: William P. Stanton, P.E., Chief\/:
Jan S. Illian, Contract Administrator
Project Planning and Construction Secyon
DATE: January 19, 1999 ,/
SUBJECT: Workshop Item g, January 27-28, 1999 Board Meeting -
Water Project Construction Loan Program
• Delinquencies, Defaults, and Collections
Introduction
This memo provides the basis for the start of a discussion of the audit recommendation to
adopt policies and procedures for handling loan collection problems and develop performance
measures to assure staff compliance.
Background •
Recommendation No. 15 of the 1998 Construction Fund Performance Audit was that the Water
Conservation Board "should(1)formally adopt policies and procedures for handling loan collection
problems and(2) ensure that staff implement procedures that address the development of
• Formal processes for identifying and dealing with collection problems.
• Criteria for declaring bad debt and procedures for referring bad debt to Central Collections
and/or the Attorney General's office to take appropriate legal action against the borrower.
• Regular and comprehensive reporting of collection issues to the Board.
• CWCB Response: AGREE. The CWCB staff will develop proposed procedures, policies and
criteria for resolving loan collection problems for consideration by the Board by June 30, 1999.
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