Laserfiche WebLink
<br />0379 <br /> <br />. <br /> <br />. <br /> <br />~ <br /> <br />o Require that interest rates for repayment purposes be <br />realistically compounded and properly ~et to reflect the <br />full cost of long term 7reasury borrowing necessitated by <br />such Federal spending, to the maximum extent permitted by <br />law. <br /> <br />o Designate an advocate within the Department for the Federal <br />ownership interest in Reclamation projects, to seek timely <br />reimbursement of the Federal investment in such projects on <br />behalf of the nation's taxpayers, answerable directly to <br />the Secretary. <br /> <br />Recommendations for the Inspector General <br /> <br />He recom~end that the Inspector General of the Department <br />of the Interior take the following actions: <br /> <br />A. Direct increased audit resources Loward Reclamation <br />project accounts, to verify the financial status of all <br />major Reclamation projects within three years. <br /> <br />B. Review those generic financial policies and practices <br />employed by the Reclamation program that have significant <br />potential for misapplication, such as cost ceiling <br />indexing; farm budget analyses; ability to pay criteria; <br />interest during construction; and cost allocation methods. <br /> <br />C. Include within each semi-annual report to Congress a <br />record of decision setting out the basis for Closing out <br />the major audits previously reported in an unresolved <br />status. <br /> <br />Recommendations for the Secretary of Energy <br /> <br />We reco~mend that the Secretary of Energy should act <br />promptly to: <br /> <br />o Promulgate a new amortization policy for the repayment of <br />the taxpayers' investment in Federal hydroelectric power <br />projects, specifically requiring: .regular annual repayment <br />of capital costs; maintenance of reasonable reserves; and <br />recision of the policy of applying annual power revenues to <br />the highest interest-bearing repayment obligation first, as <br />now contained in DOE Order RA 6120.2. <br /> <br />o Insure that any extended contractual commitments for the <br />Central Valley Project to serve non-Federal interests as a <br />power broker will carry full "passthrough" rates to fully <br />recover all costs to the government of providing such <br />service. <br /> <br />13 <br />