BOARD01061

• Board Meeting Date: 5/24/1999
• Description: CF Section - Audit Implementation Activity Report
• Board Meetings - Doc Type: Memo

.

.

.

Colorado Water Conservation Board
Department of Natural Resources
1313 Shcrm,m Street
Denver, Colorado 80203
Phone: [phone]
FAX: 1303} 866-4474

STATE OF COLOMDO

.

Bill Owens
Governor

MEMORANDUM

GregE. Walcher
Executive Director. DNR
Peter H. Evans
Director, ONCB

TO:

Colorado Water Conservation Board Members

Mike Serlet, P .E., Chief, Project Planning and Construction Section 4f

May 17, 1999

FROM:

DATE:

SUBJECT:

Agenda Item 20a, May 24-25, 1999 Board Meeting -
Water Project Construction Loan Program-
Audit Implementation Activity Report

Introduction

An overview of the status of implementing the 1998 Performance Audit
Recommendations is shown in the table below.

Background

In October 1998, the Legislative Audit Committee (LAC) reviewed the results of a
performance audit concerning the CWCB Construction Fund Loan Program, The State Auditor's
report included 18 measures for improvement of the program and raised concerns about the size and
management of the fund, the loan application and approval process and the administration of
approved loans, The CWCB agreed with the recommendations and agreed to meet again with the
LAC in June 1999 to review progress toward implementation of the recommendations,

Discussion

The CWCB has steadily been adopting more "business-like" procedures for administering
the program. The CWCB's audit implementation plan addresses all 18 of the State Auditor's
recommendations and is comprised of eight major elements, Three of these elements require
additional staff and funding and they have been included in the agency's FY2000 budget request
and in the 1999 Construction Fund and Severance Tax bill (SB 99-173). In essence, the CWCB
believes it needs two new staff members (an accountant and a contract compliance specialist) and

1