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Local Agencies' Use of Highway Funds _ ; - - <br /> Performance Audit <br /> INTERNAL CONTROLS (Continued) . _ ~ - <br /> ~ . <br /> D. Cost Accounting System. (Continued) ~ ~ - ~ - <br /> - - <br /> <br /> ' In three -counties ,the ;amounts recorded in -the: cost accounting system; apart-.from <br /> material and supply costs,-had not been reconciled to amounts recorded in._the general <br /> ledger. County personnel indicated that the time and personnel costs associated with <br /> ..:.reconciling other ,costs recorded in the -cost accounting system..to. the general -ledger <br /> was not worth the benefit to be derived.:~-;Becaiase these other costs were'not reconciled <br /> to ..amounts recorded - in ,the:;,generai..ledger,` information .provided -~to the :.Oregon <br /> j ; .Department of Transportation on the Questionnaire may .not be reflected accurately. In <br /> our professional judgment we believe that information, from they-cost accounting~system, <br /> provided to the Oregon Department of Transportation should be reflective of the actual <br /> financial information recorded in the official accounting records..- . - <br /> Five cities in our sample had established-formalized cost accounting systems to record <br /> the~cost associated with.self-constructed road improvement or maintenance projects. In <br /> four cities the amounts recorded in the cost accountin s <br /> g ystem, apart from material and <br /> supply costs; had not been reconciled to amounts recorded in the-general ledger. City <br /> personnel indicated the time and personne! costs associated with reconciling other <br /> costs to the -general ledger-was not worth the benefit to be derived. Because these <br /> .other costs were not reconciled to amounts recorded in the general ledger, information <br /> provided to the Oregon Department of Transportation on the Questionnaire may not be <br /> reflected accurately. We believe that information, from the cost accounting system, <br /> provided to the Oregon Department of Transportation should be reflective of the actual <br /> financial information recorded in the official accounting records. The remaining cities <br /> that self-constructed road improvements or maintenance projects maintained detail cost <br /> accounting records. <br /> Other findings have been summarized in Appendix A. <br /> Talbot, Korvola & Warwick, C1P 16 <br /> <br />