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Local Agencies' Use of Highway Funds - <br /> Performance Audit <br /> OVERVIEW (Continued) <br /> F. Auditors' Compliance Findings Required by OAR 162-10-295 <br /> 3. One county's cost accounting system was not maintained on a current basis <br /> due to a computer failure. _ <br /> INTERNAL CONTROLS ~ . <br /> We reviewed and documented the selected counties and cities' accounting procedures <br /> _ . <br /> I, and systems of intemal control over the receipting, disbursing, classifying and recording <br /> of State Highway Fund~moniest We performed the following specific procedures <br /> 1. Interviewed key- personnel -and .identified documents.-to : de#ermine the <br /> accounting procedures and critical intemal control points. <br /> <br /> '',I ~ _ .2. Prepared. flowcharts which identified the_.accounting procedures and critical <br /> intemal control points. <br /> 3. Assessed and evaluated the design of the accounting procedures and critical <br /> intemal control points. <br /> 4. Used attribute testing methodology to select a random sample, using dollar- <br /> unit sampling techniques, with a 90 percent confidence level and a 5 percent <br /> tolerance rate. The sample was used to test the identifiied population of <br /> expenditures for ,the effective operation of the accounfing procedures and <br /> intemal control points.- This methodology typically resulted iri sample sizes of <br /> 46 or 47 disbursements for each city or county. ~ - <br /> 5. Selected all receipts for the year (12 payments) of State Highway Fund <br /> monies to review the accounting procedures and critical intemal control <br /> points. <br /> A. Recording and Depositing of State Highway Funds <br /> Of the ten counties and fifteen cities in our sample, twenty-four received their State <br /> Highway Fund monies through an electronic transfer, from the Department of <br /> Transportation to their State Treasurers' Local Govemment Investment Pool account. <br /> One city received it's State Highway Fund monies through check. We agreed these <br /> amounts to the cities' and counties' State Treasurer's Local Government Investment <br /> Pool accounts or bank deposits, accounting records and ascertained that they were <br /> properly recorded. <br /> Talbot, Korvola 8 Warwick, t1P 13 <br /> <br />