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Local Agencies' Use of Highway Funds - <br /> Performance Audit <br /> OVERVIEW (Continued) <br /> D. Procedures Used by Independent Public Accountants in Meeting the ~ ` <br /> Requirements of OAR,162-10-295., - ~ r:; - <br /> Oregon Administrative Rule _.162-10-295.requires the independent public accountant to <br /> comment, ~ inthe annual audit report, on counties and cities' compliance with Aiticle IX, <br /> <br /> ~ ~ . 4. <br /> Section 3a`of the~'Oregon'Constitutron-pertaining to the _use .ofmonies from taxes on <br /> _ - <br /> motor vehicle fuse fuel taxes ; In addition, ,comments .rmust; be made ;.as -to .their <br /> compliance withJthe statutory~requirements pertaining toahe use of State Highway Fund <br /> .monies enumerated _in ORS 279, 294,= <br /> -368 and 373 ~ - ~ <br /> ~ ~ ~ , " <br /> - <br /> In general, independent public accountants select a sample of disbursements made by <br /> all furids,~ including those in which State Highway- Fund monies`are recorded;- grid test <br /> compliance with certain internal control procedures.- Generally;~~ttiese intemal control <br /> procedures include testing for the authorization for purchase~arid payment, support for - <br /> the expenditure and whether the purpose and amount are ~in compliancewith ariy local, <br /> state or federal requirements. ~ ~ ~ - - - ~ - _ ~ - <br /> Oregon Revised- Statutes 279.023 and 368.051 require the maintenance of complete <br /> and accurate cost records for the construction, improvement or maintenance of roads <br /> and streets -.performed by city or county personnel. In testing for- compliance, <br /> independent public accountants generally review and test the operation of the cost <br /> accounting system that captures and records all related costs. _ If a .,formalized cost <br /> accounting system is not used, the independent auditor will review records maintained <br /> that summarize costs by individual construction, improvement or maintenance project . <br /> and determine if costs are properly accounted. These procedures provide assurance to <br /> interested parties that an independent review is being performed of counties and cities <br /> compliance with the applicable statutory and regulatory requirements over the <br /> accounting and reporting of State Highway Fund monies. <br /> Talbot, Korvola 8 Warwick, 1.LP 10 <br /> <br />