|
<br />I
<br />
<br />TABLE 2, Performance Audit Recommendations
<br />
<br />I
<br />
<br />Rec,
<br />No, Recommendation Summary Progress as ofJune 30, 1996
<br />I Develop a fannal, systematic program or process which Completed, The Board agreed to implement this I
<br /> provides a long- and short-term framework for the use of recommendation by 12/93, The Board identified 5 long-
<br /> the Construction Fund, This process should include term goals at its January 1993 meeting, The Board attended I
<br /> developing broad policy statements, establishing goals a retreat in October 1993 to develop a draft Long Range
<br /> and implementation plans and developing performance Plan, The Board's Long Range Plan was formally adopted
<br /> measures. on September 14,1994,
<br /> Develop and implement an effective process for long- Completed, The Board agreed to implement this I
<br />2
<br /> term financial planning of Construction Fund monies. recommendation by 12/93, The Board staff worked with I
<br /> This process should include establishing long-term DNR accounting to set up a better method of systematically
<br /> funding needs, assessing current sources of funds. and reporting revenues. All accounts have been reconciled. A
<br /> projecting future funding requirements that may be water user needs survey was completed in July 1993, A
<br /> needed to meet long-term goals, Long-Term Financial Projection for the Construction Fund I
<br /> was completed in December 1993,
<br />3 Establish guidelines which include setting loan interest Completed, The Board agreed to partially implement this
<br /> rates to reflect market interest rates. The Guidelines recommendation by 7/93, The Board approved new I
<br /> should be reflected in the projects that will be authorized "standard" interest rate guidelines at2 basis points below the
<br /> during the upcoming legislative session. then 30-year Treasury Bond rate for 30 years at its May 6-7,
<br /> 1993 meeting, A project evaluation matrix is being used on I
<br /> new projects.
<br />4 Charge interest on cash disbursements made to project Completed, The Board agreed to implement this
<br /> sponsors during the construction phase of projects, recommendation by 12193, The Board adopted this new I
<br /> Interest charges could be added to the principal amount policy at its May meeting, The Construction Fund
<br /> of the loan and financed over the term of the loan, Guidelines have been revised to reflect the new policy,
<br /> Contracts for future construction projects will require I
<br /> interest during construction.
<br />5 Improve Board monitoring of projects by contacting Ongoing, The Board agreed to implement this
<br /> project sponsors at least annually to determine if project recommendation by 12193, Letters are sent in March to the I
<br /> sponsors plan to go ahead with the projects, Responses sponsors for all authorized but not yet constructed CWCB
<br /> should be documented and reported to the General projects, The staff evaluates the status of the project and
<br /> Assembly on an annual basis, determines if it should be deauthorized,
<br />6 Develop and implement procedures which would Completed, The Board agreed to implement this
<br /> recover the Board's share of feasibility study costs for recommendation by 10/93, The Board adopted a new policy
<br /> projects that are not constructed, Altematives should be at its May meeting that stated the Board's participation in
<br /> evaluated, including payback over a period of time, feasibility study costs must generally be repaid whether the
<br /> project is constructed or not. The Guidelines have been
<br /> revised to reflect this policy,
<br />7 Develop methoda to demonstrate Board compliance with Completed, The Board agreed to implement this
<br /> procedures it has established, including documentation recommendation by 7/93, A project checklist was prepared I
<br /> of all Board reviews and approvals, by staff in July 1993,
<br />
<br />I
<br />
<br />CWCB FY96 Annual Report, page 14
<br />
|