An Audit Report on Selected Loan Administration Processes at the Water Development Board
The Water Development Board (Agency) has processes in place to review applications for financial assistance through the
State Water Implementation Fund for Texas (SWIFT) and Water Development Fund (WDF) programs and to monitor borrower repayment status and projects funded through its loans.
Although the Agency prioritized applications for financial assistance through the SWIFT program in accordance with applicable requirements,
it should strengthen its processes and controls over its reviews of SWIFT and WDF applications to ensure that those applications are complete.
The Agency’s financial monitoring activities identify financially risky borrowers and verify borrower compliance with loan terms and other
applicable requirements. The Agency accurately assessed the financial health of SWIFT and WDF borrowers. In addition, the Agency performed
project monitoring activities that determined whether funded projects progressed in accordance with the Agency’s requirements. However,
the Agency should improve the timeliness of its financial monitoring activities.
Across both its application review and monitoring functions, the Agency should strengthen its supervisory review processes
to ensure that it performs and documents those functions consistently and in accordance with its policies and procedures.
Jump to Overall Conclusion
The Agency prioritized applicants for SWIFT program financing in accordance with requirements for the 2019 and 2020 SWIFT funding cycles.
However, the Agency should strengthen controls over its prioritization process for future funding cycles.
Jump to Chapter 1-A
The Agency should strengthen processes and controls to ensure that SWIFT and WDF applications are complete and meet the Agency’s requirements.
In addition, the Agency did not consistently perform and document its technical reviews accurately or in accordance with its policies and procedures.
Jump to Chapter 1-B
The Agency accurately assessed the financial health of SWIFT and WDF borrowers. However, the Agency should complete its monitoring activities
within its established time frames. In addition, the Agency should strengthen its supervisory reviews to ensure that its monitoring documentation
is accurate and consistently supported.
Jump to Chapter 2
The Agency has implemented and performed monitoring activities to assess the progression of projects funded through
the SWIFT and WDF financial assistance programs; however, the Agency should improve its
supervisory reviews to ensure that all aspects of the monitoring have been completed and documented as required.
Jump to Chapter 3
Graphics, Media, Supporting documents