Report of the State Auditor 1993

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12 Water Conservation Board Construction Fund Performance Audit-February 1993 Interest earned from the balance of Construction Fund monies deposited with the State Treasurer are credited to the fund. Interest charges on loans made by the Board for projects financed through the Construction Fund may range from 0 to 7 percent on the basis of the project sponsor's ability to pay and the significance of the project to the State. Currently, interest charges on loans may range from 0 to 7 percent. Overview of the Project Application Process Generally, an entity, such as a water district, requests assistance from the Board. The Board does not solicit the request. The application process includes the following steps: . The applicant submits a loan application to the Board. . The Board reviews and discusses the application and project with the project sponsor. . A feasibility study is conducted. The cost of the study may be shared by the Board and the sponsor. The Board's share of the feasibility study is generally recovered if the project is approved and completed. . The staff of the Board reviews the feasibility study. . A formal request for funding is submitted to Board members after the staff s approval of the feasibility study. . The Board members may approve or disapprove the project. Board members assign priorities to the projects and annually submit a report to the General Assembly. . Authorization of project funding is accomplished by adoption of a statute by the General Assembly and approval by the Governor.' The General Assembly annually authorizes projects recommended by the Board.