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OFFICE OF INSPECTOR GENERAL
Catalyst for Improving the Environment
Audit Report
State of Oregon Clean Water
State Revolving Fund Program
Financial Statements
for the Year Ended June 30, 2005
Report No. 2006-1-00021
January 12, 2006

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Abbreviations
CWSRF	Clean Water State Revolving Fund
EPA	U.S. Environmental Protection Agency
GASB	Government Accounting Standards Board
ODEQ	Oregon Department of Environmental Quality
OIG	Office of Inspector General
SRF	State Revolving Fund

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U.S. Environmental Protection Agency	2006-1-00021
£ %M \ Office of Inspector General	January 12,2006
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- At a Glance
Catalyst for Improving the Environment
Why We Did This Audit
We performed this audit to
determine:
•	Whether the Oregon Clean
Water State Revolving
Fund Program's (the
Program's) financial
statements were fairly
presented in all material
respects;
•	To what extent the
Program's internal
controls over financial
reporting could be relied
upon;and
•	Whether the Program
complied with applicable
laws and regulations.
State of Oregon Clean Water State Revolving Fund
Program Financial Statements for the Year Ended
June 30, 2005
What We Found
We rendered unqualified opinions on the Oregon Clean Water State Revolving
Fund Program financial statements for the year ended June 30, 2005, and
Oregon's compliance with applicable laws and regulations. We did not note
any weaknesses in internal control that we consider to be material.
Background
The requirement for audited
financial statements was
enacted to help ensure that the
Program had management
practices, systems, and
controls in place to provide
reliable information for
managing the Federally
funded program.
For further information,
contact our Office of
Congressional and Public
Liaison at (202) 566-2391.
To view the full report,
click on the following link:
www.epa.qov/oiq/reports/2006/
20060112-2006-1 -00021 .pdf

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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
OFFICE OF
INSPECTOR GENERAL
January 12, 2006
MEMORANDUM
SUBJECT: Auditor's Report for the State of Oregon
Clean Water State Revolving Fund Program
Financial Statements for the Year Ended June 30, 2005
Report No. 2006-1-00021
FROM: Michael A. Rickey /s/ 'JfUdad/l. "Rurfxy
Director for Assistance Agreement Audits
TO:	Michael Bogert, Regional Administrator
EPA Region 10
Seattle, WA
Attached is a copy of the subject audit we sent to the State of Oregon. The audit contains reports
on the financial statements, internal controls, and compliance requirements applicable to the
State of Oregon Clean Water State Revolving Fund Program financial statements for the year
ended June 30, 2005.
We issued an unqualified opinion on the financial statements and on the compliance
requirements applicable to the State of Oregon Clean Water State Revolving Fund program. In
addition, we did not note any matters involving the internal control system and operations that
we consider to be material weaknesses.
Since we did not have any compliance matters or costs questioned, we are closing the audit
report on issuance.
We have no objection to the release of this report to any member of the public upon request.
The report contains no confidential business or proprietary information. If you have any
questions or concerns, please contact Mr. William Dayton at (916) 498-6590 or Ms. Melinda
Burks at (206) 553-6906.
# * \
I® J
Enclosure

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Table of Contents
At a Glance
Independent Auditor's Report on the State of Oregon
Clean Water State Revolving Fund Program Financial Statements
for the Year Ended June 30, 2005	 1
Statement of Net Assets		2
Statement of Revenues, Expenses, and Changes in Net Assets		3
Statement of Cash Flows		4
Notes to the Financial Statements		6
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards	 12
Distribution 	 14

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$ A \
I® I
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
OFFICE OF
INSPECTOR GENERAL
Independent Auditor's Report on the State of Oregon
Clean Water State Revolving Fund Program Financial Statements
for the Year Ended June 30, 2005
We have audited the accompanying financial statements of the State of Oregon Clean Water
State Revolving Fund Program (the Program) as of and for the year ended June 30, 2005. These
financial statements are the responsibility of the Program's management. Our responsibility is to
express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
As discussed in Note 1, the financial statements referred to above are intended to present the
financial position, and the changes in financial position and cash flows, where applicable, of the
Program. They do not purport to, and do not, present fairly the financial position of the State of
Oregon as of June 30, 2005, and the changes in its financial position and its cash flows, where
applicable, for the year then ended in conformity with accounting principles generally accepted
in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the Program, as of June 30, 2005, and the changes in financial position
and cash flows, where applicable, for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.
Office of Inspector General
November 8, 2005
1

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State of Oregon
Clean Water State Revolving Fund Program
Statement of Net Assets
June 30, 2005
Assets
SRF
Current Assets:
Cash and cash equivalents
Loan interest receivable
Loans receivable, current
Total current assets
$ 81,882,351
3,343,107
20.868.862
106.094.320
Administration
$ 5,227,382
5.227.382
Total
$ 87,109,733
3,343,107
20.868.862
111.321.702
Noncurrent Assets:
Loans receivable, net of current
Deferred Expenses
Total noncurrent assets
256,969,663
237.544
257,207,207
256,969,663
237.544
257,207,207
Total Assets
$363.301.527 $ 5.227.382
$368.528.909
Liabilities and Net Assets
Current Liabilities:
Accounts payable
Payroll payable
Construction costs payable
Due to other funds
Bond interest payable
Bonds payable
Total current liabilities
$ 443,371
228,930
850.000
1.522.301
3,715
47,867
9,243
3,715
47,867
443,371
9,243
228,930
850.000
60.825
1.583.126
Noncurrent Liabilities:
Bonds payable, net of current
Total noncurrent liabilities
15.505.000
15.505.000
15.505.000
15.505.000
Total liabilities
17,027,301
60,825
17,088,126
Net assets:
Restricted
346,274,226
5,166,557
351,440,783
Total liabilities and net assets
$ 363.301.527
$ 5.227.382
$368.528.909
2

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State of Oregon
Clean Water State Revolving Fund Program
Statement of Revenues, Expenses, and Changes in Net Assets
For the Year Ended June 30, 2005
SRF
Operating Revenues:
Loan interest
Investment earnings
Loan fees
Total operating revenues
$ 9,233,418
1,917,031
11.150.449
Administration
109,544
1.068.473
1.178.017
Total
9,233,418
2,026,575
1.068.473
12.328.466
Operating Expenses:
Bond interest
Other bond costs
Salaries and benefits
Services and supplies
Indirect costs
Total operating expenses
1,356,265
91,619
1.447.884
701,025
103,424
134.597
939.046
1,356,265
91,619
701,025
103,424
134.597
2.386.930
Operating Income
9,702,565
238,971
9,941,536
Nonoperating Revenues (Expenses)
EPA grants received
Transfers in (out)
Total nonoperating
revenues (expenses)
16,048,936
(485.483)
15,563,453
485,483
485,483
16,048,936
	0
16,048,936
Change in net assets	25,266,018	724,454 25,990,472
Net assets, beginning of year	341,540,655	4,442,103 345,982,758
Prior Period Adjustment
Effect of assumption of general
obligation bonds since June 30,2003	(20,532,447)	(20,532,447)
Net assets, beginning of year, adjusted	321.008,208	4,442,103 325,450,311
Net assets, end of year	$ 346.274.226 $ 5.166.557	$351.440.783
3

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State of Oregon
Clean Water State Revolving Fund Program
Statement of Cash Flows
For the Year Ended June 30, 2005
Cash flows from operating activities:
Cash received from loan interest repayments
Cash received from loan principal repayments
Cash disbursed to borrowers
Cash received from loan fees
Interest payments on match bonds
Cash received from Treasury interest credits
Cash payments to:
Vendors
Employees
Indirect cost
Net cash used by operating activities
$
9,066,091
13,171,290
(40,238,856)
1,068,473
(1,127,335)
2,026,575
(108,895)
(711,066)
(125.394)
(16.979.117)
Cash flows from noncapital financing activities:
Net cash provided by noncapital financing activities
Cash flows from capital and related financing activities:
Funds received from EPA
Proceeds from sale of bonds
Principal payments on match bonds
Net cash provided by capital and related financing activities
16,128,447
5,988,389
(10.495.000)
11,621,836
Cash flows from investing activities:
Net cash provided by investing activities
Net decrease in cash
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
(5,357,281)
92.467.014
$87.109.733
4

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State of Oregon
Clean Water State Revolving Fund Program
Statement of Cash Flows
For the Year Ended June 30, 2005
Reconciliation of operating income to net cash used by operating activities:
Operating income	$ 9,941,536
Amortization of bond costs	91,619
Adjustments to reconcile operating income to net cash used by operating activities:
(Increase) in loan interest receivable	(167,327)
(Increase) in loans receivable (27,457,748)
Increase in construction costs payable	390,182
(Decrease) in accounts payable	(5,477)
(Decrease) in payroll payable	(11,075)
Increase in amount due to other funds	10,243
Increase in bond interest payable	228,930
Net cash used by operating activities	$(16.979.1171
5

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State of Oregon
Clean Water State Revolving Fund Program
Notes to the Financial Statements
1.	Organization of the Fund
The Oregon Clean Water State Revolving Fund (the Fund) was established pursuant to Oregon Revised
Statutes 468.423 - 468.440. The purpose of the Fund is to provide low interest loans to local
governments for constructing wastewater treatment facilities, implementing nonpoint source pollution
management plans, and the design and implementation of estuary management plans. The loan
repayment period is a maximum of 20 years, and all repayments, including interest and principal, must be
credited to the State Revolving Fund.
The Fund is administered by the State of Oregon's Department of Environmental Quality (ODEQ). The
SRF program consists of several funds to record loan and related activity and an administrative fund that
collects loan fees and pays the operating costs of the program, and are collectively referred to as the
Fund. ODEQ's primary responsibilities for the Fund include obtaining capitalization grants from EPA,
soliciting potential interested parties for loans, negotiating loan agreements with local communities,
reviewing and approving payment requests from loan recipients, monitoring the loan repayments, and
conducting inspection and engineering reviews to ensure compliance with all applicable laws, regulations,
and program requirements.
The ODEQ charges the Fund for staff time spent on SRF activities, and the Fund pays those expenses
from the Administration fund. The charges include the salaries and benefits of the employees, as well as
indirect costs allocated to the Fund. The rate of indirect cost is negotiated annually with the EPA.
Employees charging time to the Fund are covered by the benefits available to Oregon State Employees.
The Fund is also charged indirect costs through the cost allocation plan for general state expenses.
The Fund financial statements, footnotes, and required supplemental information are presented for the
U.S. Environmental Protection Agency. The Fund is included in the Oregon general purpose financial
statements as a special revenue fund which uses the modified accrual basis of accounting. Due to
differences in reporting methods, there may be differences between the amounts reported in these
financial statements and the general purpose financial statements.
2.	Summary of Significant Accounting Policies
Basis of Accounting
The financial statements for the Fund are presented as an enterprise fund. As such, the Fund is
accounted for using the flow of economic resources measurement focus and is maintained on the accrual
method of accounting. Under the accrual method of accounting, revenues are recognized when earned
and expenses are recorded at the time the liabilities are incurred. All assets and liabilities associated with
the operations of the Fund are included on the balance sheet. The State has elected to follow the
accounting pronouncements of the Governmental Accounting Standards Board (GASB), as well as
statements issued by the Financial Accounting Standards Board on or before November 30, 1989, unless
the pronouncements conflict with or contradict GASB pronouncements.
Cash and Cash Equivalents
All monies of the Fund are deposited with the Oregon Treasurer's Office which is responsible for
maintaining these deposits in accordance with Oregon law. The Fund considers all such deposits to be
cash. Investment interest earnings on these deposits are received by the Fund on a monthly basis.
According to State law, the Treasurer is responsible for maintaining the cash balances and investing
excess cash of the Fund, as further discussed in Note 3. Consequently, management of the Fund does
not have any control over the investment of the excess cash. The statement of cash flows considers all
funds deposited with the Treasurerto be cash or cash equivalents, regardless of actual maturities of the
underlying investments.
6

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State of Oregon
Clean Water State Revolving Fund Program
Notes to the Financial Statements
2.	Summary of Significant Accounting Policies (continued)
Loans Receivable
The loans are funded by Federal capitalization grants, State matching funds, general obligation and
revenue bonds, loan repayments, and fund earnings. The SRF monies are disbursed to borrowers on a
cost reimbursement basis. When borrowers have incurred qualifying expenses, they request a loan
disbursement from the Fund, and at that time, a disbursement is made and recorded in the Fund
accounting records. Interest begins accruing when funds are disbursed to the borrower. After the final
disbursement, repayment begins with an interest only payment. Full repayment must be received by the
Fund within 20 years. There is no provision for uncollectible accounts, as all repayments are current, and
program management believes all loans will be repaid according to the loan terms. There have been no
loan defaults in the program since its inception.
3.	Cash and Cash Equivalents
All cash in the Fund is deposited with the State Treasurer who is responsible for maintaining and
investing the pooled cash balances in accordance with State laws. The Treasurer is required to maintain
a mix of investments in order to allow funds to be withdrawn at any time to meet normal operating needs.
The Fund's share of the investment income is based on the average daily balance for the period and is
credited to the Fund monthly. Details of the investments can be obtained from the State Treasurer's
Office.
All cash and investments are stated at cost, which approximates fair market value. Investments held by
the State Treasurer's Office are not categorized because they are not evidenced by securities that exist in
physical or book entry form.
Carrying	Market
Amount	Value
Not subject to categorization:
Deposited with State Treasurer's Office	$ 87.109.733 $ 87.109.733
4. Loans Receivable
The Fund makes loans to qualified entities at interest rates ranging from zero percent to the market rate.
Interest rates vary depending on the length of the loan, the type of loan, and program rules. Prior to 1995
rates were either zero percent or three percent, depending on the length of the repayment period.
Between 1995 and 2003 the interest rate for facilities planning was one-half the bond rate, and the
interest rate for design and construction was the greater of two-thirds the bond rate or the bond rate
minus two percent. In May of 2003, interest rates were modified to be based on loan terms. Rates range
from 25% of the bond rate for 5 year loans to 65% of the bond rate for 20 year loans. Recipients make
semiannual or, in some cases, annual payments, generally starting six months after project completion.
Details of loans receivable as of June 30, 2005 are as follows:
Loan	Remaining Outstanding
Authorized Commitment Balance
Completed projects	$359,077,807 $ 0 $ 237,127,067
Projects in progress	168,941.268 129,491.762 40,711.458
Totals	$528.019.075 $129.491.762 277,838,525
Less amounts due within one year	20,868,862
Loans receivable, June 30, 2005	$ 256.969.663
Loans mature at various intervals through June 1, 2026. The scheduled minimum principal repayments in
future years are as follows:
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State of Oregon
Clean Water State Revolving Fund Program
Notes to the Financial Statements
4. Loans Receivable (continued)
Year ending June 30:	Amount
2006	$ 20,868,862
2007	16,397,183
2008	16,306,544
2009	16,839,853
2010	17,175,556
Thereafter	190,250,527
Total	$277.838.525
Loans to Major Local Agencies:
As of June 30, 2005, the Fund has made loans to 14 local governments that totaled $10,000,000 or more,
and in the aggregate, exceeded $340,000,000. The outstanding balances of these loans represent
approximately 65 percent of the total loans receivable, as follows:
Borrower
Authorized
Loan Amount
Outstandina
Status
City of Albany
$ 49,286,394
1,127,562
New/Repay.
City of Ashland
23,920,068
$21,659,513
Repayment
City of Brookings
13,100,000
12,032,716
Repayment
City of Corvallis
21,963,693
18,406,188
Repayment
City of Dallas
14,880,000
12,078,316
Repayment
City of Eugene
25,592,592
2,069,417
Repayment
City of Florence
12,279,155
10,424,646
Repayment
City of Gresham
42,359,498
23,716,463
Repayment
City of Newport
20,228,883
18,626,921
Repayment
City of Ontario
13,971,689
8,278,581
Repayment
City of Portland
33,791,673
6,162,969
Paid/Active
City of Prineville
18,267,286
12,639,663
New/Repay.
City of Redmond
21,138,406
5,383,352
Repay/Active
City of Woodburn
30.349.671
25.689.276
Repayment
TOTAL
$341,129,008
$ 178.295.584

5. Fixed Assets
The only fixed assets are equipment. During fiscal year 2005 there were no purchases of equipment, and
the existing CWSRF loan program capital assets have all been fully depreciated.
6. Bonds Payable
In July 2003, EPA allowed the SRF to use Fund assets to pay the principal and interest on $23,765,000
of general obligation bonds that were previously issued by the State to provide the 20 percent state
matching funds as required by the Clean Water Act. The details of such bonds at June 30, 2005 are as
follows:
State Match Bonds:
Series 1995B, General Obligation
Pollution Control Bonds,
interest of 4.7% to 5.25% due semi-
annually, principal due annually to
November 1,2015.
Balance
$ 3,325,000
Current
Long-term
$ 230,000 $ 3,095,000
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State of Oregon
Clean Water State Revolving Fund Program
Notes to the Financial Statements
6. Bonds Payable (continued)
Series 1997A, General Obligation
Pollution Control Bonds,
interest of 3.8% to 5.0% due semi-
annually, principal due annually to
November 1,2017.	6,035,000	335,000	5,700,000
Series 2000A, General Obligation
Pollution Control Bonds,
interest of 4.15% to 5.50% due semi-
annually, principal due annually to
August 1,2020.	6.995.000	285.000	6.710.000
Totals	$ 16.355.000	$ 850.000 $ 15.505.000
7. Federal Grants and State Match
The Fund is capitalized by Capitalization Grants for SRF from the EPA. These grants have been
awarded annually, beginning in federal fiscal year 1989. The State of Oregon must also contribute an
amount equal to 20 percent of the federal capitalization amount, as discussed below. As of June 30,
2005, EPA has awarded capitalization grants in the amount of $263,489,612 to the State of Oregon, of
which $251,316,671 has been drawn for loans and administrative expenses. The following summarizes
the capitalization grant awards, amounts drawn on each grant as of the balance sheet date, and balances
available for loans and administrative costs:
Total Draws	Total Draws Grant Funds
Grant As of	2005 as of Available
	Amount	June 30, 2004 Draws	June 30, 2005 June 30, 2005
1989-2002 $ 221,383,526 $221,383,526	$ 0 $ 221,383,526 $ 0
2003	14,962,068 13,804,698	1,157,370 14,962,068 0
2004	14,971,077 0	14,971,077 14,971,077 0
2005	12,172,941	0	0	0	12,172,941
Totals	$263,489,612 $235,188,224 $16,128,447 $251,316,671	$ 12,172,941
Prior to 1993, Oregon's matching contribution was provided through appropriation of State general fund
resources. Beginning in 1993, state matching funds were provided by issuing General Obligation
Pollution Control Bonds. Between 1993 and 2003, Oregon issued $29,980,000 in state match bonds and
transferred the proceeds plus interest to the SRF as state match. In July 2003, EPA allowed the SRF to
assume $23,765,000 of previously issued bonds, and principal and interest payments on those bonds to
be paid from interest earnings of the SRF. Activity on bonds assumed by the SRF since July 2003 is as
follows:
Balance	Principal	Principal
Transferred	Paid	Paid	Balance
Bond Issue July 1,2003	2004	2005 June 30,2005
1993A 1,865,000	1,865,000	0
1994A 3,965,000	280,000	3,685,000	0
1995B 3,755,000	210,000	220,000	3,325,000
1997A 6,660,000	305,000	320,000	6,035,000
2000A 7,520,000	255,000	270,000	6,995,000
$ 23,765,000 $ 2,915,000 $ 4,495,000 $ 16,355,000
9

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State of Oregon
Clean Water State Revolving Fund Program
Notes to the Financial Statements
7. Federal Grants and State Match (continued)
Interest paid on bonds transferred to the SRF was approximately $745,000 in 2004 and $897,000 in
2005.
Since July 2003, Oregon has issued bonds to provide state match, with all principal and interest on such
bonds being paid by the SRF. The details of such bonds are as follows:
Principal Principal Balance
Bond Issue Issued	Paid 2004 Paid 2005 June 30, 2005
2003C $ 3,000,000 $ 3,000,000	$
2004A 6,000,000	$ 6,000,000	-
$ 9,000,000 $ 3,000,000 $ 6,000,000 $
The effect on the state matching funds previously contributed by the State is as follows:
June 30. 2005
Oregon State Matching Contribution	$ 47,277,572
Reduce state match for transfers from bond fund	(26,429,045)
State Match, Adjusted	$ 20.848.527
8.	Loan Fees
In order to support administration and project management costs, loan fees are assessed on all loans
originating after 1992. A loan origination fee of 1.5 percent is assessed at the beginning of the repayment
period, and an annual fee of 0.5 percent is assessed on the outstanding balance. The fees are deposited
to an account outside the Fund and will be used only for administrative and project management costs.
In May 2003, the Environmental Quality Commission (EQC) approved changes to the program's
administrative rules. One of the approved changes is the elimination of the 1.5% loan processing fee that
has been charged on all loans. This fee is no longer charged. Also, fees on planning loans will not be
assessed, in order to encourage Oregon communities to complete more planning.
9.	Contingencies, Related Parties, and Subsequent Events
Contingencies
The Fund is exposed to various risks of loss related to torts, thefts of assets, errors or omissions, injuries
to state employees while performing Fund business, or acts of God. The State maintains insurance for all
risks of loss which is included in the indirect costs allocated to the Fund.
In previous years the State of Oregon has been named in suits against CWSRF borrowers, by citizens
either claiming unlawful sewer rate increases or unlawful debt. These suits have been decided in favor of
our borrowers and the State of Oregon, and we are unaware of any such contingencies in existence at
this time.
10

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State of Oregon
Clean Water State Revolving Fund Program
Notes to the Financial Statements
9. Contingencies, Related Parties, and Subsequent Events (continued)
Related Parties
There are no related party transactions with or related amounts receivable from management of the Fund.
Subsequent Events
No events occurred subsequent to the balance sheet date that came to our attention which require
adjustment to, or disclosure in, the financial statements.
11

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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
OFFICE OF
INSPECTOR GENERAL
Independent Auditor's Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
We have audited the financial statements of the State of Oregon Clean Water State Revolving
Fund Program (the Program) as of and for the year ended June 30, 2005, and have issued our
report thereon dated November 8, 2005. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Program's internal control over
financial reporting in order to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and not to provide an opinion on the internal control
over financial reporting. Our consideration of the internal control over financial reporting
would not necessarily disclose all matters in the internal control that might be material
weaknesses. A material weakness is a reportable condition in which the design or operation of
one or more of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be material in relation
to the financial statements being audited may occur and not be detected within a timely period
by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operation that we
consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Program's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. This included
tests of specific program requirements governing allowability for specific activities, allowable
types of assistance, State matching, period of availability of funds and binding commitments,
cash management, program income, and subrecipient monitoring that are applicable to the
Program for the year ended June 30, 2005.
12

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The management of the Program is responsible for the Program's compliance with those
requirements. Our responsibility is to express an opinion on those requirements based on our
audit. An audit includes examining, on a test basis, evidence about the Program's compliance
with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Program complied, in all material respects, with the specific program
requirements that are applicable to the Program for the year ended June 30, 2005.
This report is intended solely for the information and use of management of the Program and
the U.S. Environmental Protection Agency, and is not intended to be and should not be used by
anyone other than these specified parties.
Office of Inspector General
November 8, 2005
13

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Distribution
EPA Region 10
Regional Administrator
Director, Water Division
State Revolving Fund Coordinator
Audit Followup Coordinator
EPA Headquarters
Director, Grants Administration Division
Director, Financial Management Division
Director, Office of Grants and Debarment
Agency Followup Coordinator
State Revolving Fund Audit Manager
State Revolving Fund Branch, Office of Water
State of Oregon
Division of Water Quality, Oregon Department of Environmental Quality
14

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