Financial Management: Impact of RUS' Electricity Loan Restructurings

摘要

This report responds to your request, as expressed in your letters of October 15,1999, and March 23, 2000, to review the Rural Utilities Services (RUS) policies, procedures, and assumptions used when restructuring loans of financially troubled borrowers to mitigate future loan losses. Specifically, you asked us to determine (1) RUS policies and procedures for restructuring financially troubled generation and transmission and whether these are being consistently followed, (2) whether RUS properly carried out loan restructurings in accordance with criteria defined in the Federal Credit Reform Act of 1990 and Office of Management and Budget (OMB) guidance, (3) how much it cost the federal government to restructure RUS debt since enactment of its debt settlement authority, and (4) whether the costs of restructured loans are accurately reported.