A Legislative Requirement
An Audit Report on Refugio County's Disaster Recovery Loan
December 2024
Overview
The State Auditor’s Office was required to determine whether Refugio County (County) has the ability to repay the loan it received from the Texas Division of Emergency Management’s Disaster Recovery Loan Program.
The audit results determined that the County will not be able to repay the $6.15 million disaster recovery loan it received. Based on current balances and estimated future funds available through 2032 (the loan’s term date), the County will not have the funds available for full repayment.
The County’s total general fund balance, which represents its funds available to make payments, was $1.63 million as of September 2024. The County uses its general fund to cover operating expenses, which include loan repayments. Based on the analysis performed by auditors, the County does not raise enough revenue to pay the amount due. In the future, the County could consider strategies to increase its available balance and/or reduce costs.
The auditor analysis considered the County’s balances for fiscal years 2019 through 2023 and the estimated available funds through 2032. Figure 1 on the next page summarizes those balances over time as compared to the total loan amount.