Summary of Report 02-059

July 2002

Report Number 02-059

The Water Development Board (Water Board), the Department of Transportation (TxDOT), and the Higher Education Coordinating Board (Coordinating Board) can make improvements to their revolving loan funds.

• Maximizing Funds Available to Citizens. The Coordinating Board loaned most of the available funds in the Hinson-Hazlewood College Student Loan Program. However, as of August 31, 2001:

  o The Water Board had $235 million available in its Clean Water and Drinking Water State Revolving Fund programs that was not loaned to eligible political subdivisions for wastewater treatment facilities and public drinking water systems.

  o TxDOT did not loan $182 million in funds available in its State Infrastructure Bank (SIB) program. After our fieldwork ended, TxDOT approved an additional loan for $144.7 million to the North Texas Tollway Authority. This loan only enabled the Authority to pay TxDOT for the outstanding balance of a 1995 loan from TxDOT's Fund 6.

• Sustainability of Revolving Loan Fund Programs. During fiscal year 2001, the Water Board's Clean Water and Drinking Water programs were self-sustaining. However, the Coordinating Board had opportunities to improve its collection process for defaulted loans. We could not determine if TxDOT's SIB program was self-sustaining because TxDOT did not maintain the SIB program's administrative cost information separately.



• Compliance and Information. All three agencies manage their revolving loan programs in compliance with the applicable laws, regulations, and agency policies. In addition, in fiscal years 1999 through 2001, decision makers at all three agencies generally had accurate and timely information with which to manage their revolving loan programs.
  

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