Improvements Needed in the Administration of Farmers Home Administration's Water and Waste Disposal Program

Gao ID: CED-77-116 September 1, 1977

Lack of documentation prevents determination as to whether the Farmers Home Administration (FmHA) is complying with the "credit elsewhere" provision of the water and waste disposal program. Borrowers' files are not always reviewed to determine the ability of borrowers to refinance their water and waste disposal loans.

Borrowers were not requested to refinance their loans, and it could not be determined whether borrowers were being asked to seek credit elsewhere. Agency requirements for using reserve funds to repair or replace system components did not insure that water and waste disposal systems would remain viable for the loan repayment period.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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