PUB00073

• Year: 1997
• Title: Construction Fund Annual Report 1997
• CWCB Section: Finance
• Author: CWCB
• Description: Construction Fund Annual Report 1997
• Publications - Doc Type: CF Annual Report

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TABLE 2, Performance Audit Recommendations

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Rec.
No. Recommendation Summarv Proeress as of June 30.1997
I Develop a formal, systematIC program or process which Completed. The Board agreed 10 lmplemenllhis
provides a ]ong- and short-term framework for the use of recommendatlon by 12/9). The Board identified S long-
the Construction Fund ThIs process should Include term goals at lIS January 1993 meellng_ The Board attended
developing broad polley st31l:ments,eS1Jblishlng goals a retreat In October 1993 to develop a draft Long Range
and Implementanon plans and developing perforrnam:c Plan The Board's Long Range Plan was formally adopted
measures. on September 14, 1994 and reVIsed July 1995
2 Dnelop and Implement an effcclIve process for long- Completed. The Board agreed to Implement thIS
term financial plannmg ofConstrucuon Fund monl(~s. recommendatIon by 12193. The Board staff .....orked with
This process should mclude estabhshmg long-term D:'>iR accountmg to set up a bener method of systematically
fundmg needs, asseSSlllg current sources of funds. and reponmg revenues. All accounts have been reconciled. A
proJecllng future fundIng requuements 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 Construcllon Fund
was completed in December 1993 and IS revised annuallv_
J Establish gUldelmes which include sellmg loan inlereS! Completed. The Board agreed to p:anially Implement thIS
rates to reflectmarkel interestr:ates. The Guidelines recommendation by 7/93. The Board appro\'ed new
should be reflected In the projects thaI WIll be authoTlzed "standard" interest rate guidelmes at 2 basis points below
during the upcommg leglslallvesession. the then 30-year Treasury Bond r:ate for 30 years at its May
6-7,1993 meellng_ A project evaluation matra is being
used on new oroieclS.
, Charge interest on cash disbursements made to prOject Completed. The Board agreed to Implement thIS
sponsors dUring the construcllon phase of projects recommendation b)' 12/93. The Board adopted Ihis new
Interest chargcs could be added to the pnnclpal amount policy at liS May mceting. The Contracts for future
of the loan and financed over the term oflhe loan. ,onstruction projects wIll require mterestduring
constructIon.
S Improve Board mOllllonng of projects by COntacting Ongolng_ The Board agreed to implcment thIS
project sponsors at least annually to detcrmine IfprojCCI recommendallon by 12193. Lellersarc sent in Sept. to Nov.
sponsors plan to go ahead With the projects. Responses to the sponsors for cenam authorized but nOI yet constructed
should be documented and reponed 10 the General CWCB projects. The staff evaluates the status of the project
Assembly on an annual basis. and delenmnes If II should be deauthorized.
6 Develop and implement procedures which would reco~'er 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, Altemall\'es should be at ItS May 1993 meetmg thaI stated the Board's partlcipallon
evaluated. mcludmg payback o\'er a peTlod of lime, m feasibility study costs must generally be repaid whether
lhe proJect;s constructed or not. The GUIdelines have been
reVIsed to reflect this policy_
, De~elop methods to demonstratc Board comphance WIth Completed The Board agreed to Implement lhlS
procedures It has established. including-documentatIon of recommendallon by 7193 A project checklist was prepared
all Board TC\'lews and approvals by staff In July 1993. A standard conlractlnformation sheel
v.asdeveloped Several procedures ha\'e been "Tlnen
down, Insurance certIficates and UCC documents are
tracked. A computer lracking syslem was deSIgned In 1997.

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CWCB FY97 Annual Repon, page 1.:

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