A Performance Audit
An Audit Report on Refugio County's Disaster Recovery Loan
January 2026
Overview
The State Auditor's Office was required to determine whether Refugio County (County) has the ability to repay the loan it received in October 2023 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 $3 million disaster recovery loan it received. Based on the forecast of funds available through 2033 (the loan's term date), the County is expected to lack sufficient funds to fully repay the loan after complying with its required cash reserve balance.
The County uses its general fund to cover operating costs, which include loan repayments. Based on the analysis performed by auditors, the County would not raise enough revenue after cash reserves are set aside to pay the amount due. In the future, the County could consider strategies to increase its available balances and/or reduce costs.
The auditor analysis considered the County's balances for fiscal years 2021 through 2025 and the forecasted available funds through 2033.