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Local Agencies' Use of Highway Funds - _ _ <br /> Performance Audit ~ _ <br /> SUMMARY AND RECOMMENDATIONS ~ Continued _ = - <br /> ~ ) <br /> - _ A: _Repor6ng of State .Highway Funds.~.(Continued) = . ~ ~ _ _ . _ . <br /> . In addition,: all cities and counties should be required to reconcile. amounts reported on <br /> the Questionnaire to the .amounts appearing in their official accounting records: This will <br /> assure that information in the Questionnaire is reflective of actual financial data. <br /> <br /> I - <br /> B.. Specifically.ldentify State Highway Fund Expenditures:~~;~ <br /> . _ , <br /> ORS 366.815 requires that cities set aside State Highway Fund monies m -a separate <br /> State Tax Street-Fund. Generally, we found that the cities iri our sample accounted for <br /> State Highway Fund monies in a general road fund, along with other`monies;~in place of <br /> . . <br /> a unique -State :Tax Street: Fund. The general road fund ~is ° used =to~ pay `for -costs <br /> associated with 'road and street programs.. -The other monies in ahe general road fund <br /> included ~ such :items as~ ~ property taxes, grants, .traffic impactfees, andsystems <br /> develo m a result of the com . <br /> ent cha es. As mm lin of monies a ma' <br /> P r9 9 9 o of the cities <br /> ! ~y <br /> and counties in. our sample were unable to specfically identity the monies used to pay <br /> for road or street programs. <br /> However, our review of disbursements by the cities and .counties indicated only two <br /> instances where the costs could have.been an unallowable use of State Highway Fund <br /> monies.. These instances were the use of commingled monies for the construction of <br /> an office building for the partial use by the Oregon Department of Transportation and <br /> the purchase of Christmas tree lights, for an immaterial amount, discussed in the <br /> Compliance With Laws and Regulations section of our report. <br /> To ensure compliance with constitutional and statutory requirements for the expenditure <br /> of State Highway Fund monies, cities and counties should modify, if necessary, their <br /> chart of accounts or provided specific identfication of State Highway Fund <br /> expenditures. The modification to the chart of accounts will permit specific identification <br /> of which monies, State Highway Funds, grants, property taxes, etc. were used to pay <br /> Talbot, Korvola & Warwick, up 28 <br /> <br />