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Local Agencies' Use of Highway Funds <br /> Performance Audit <br /> SUMMARY AND RECOMMENDATIONS (Continued) <br /> F. Formalize Use of Commingled Funds <br /> Our audit determined that all cities and counties commingled other monies with State <br /> Highway Fund monies for the purpose of road and street programs. Oregon Revised <br /> Statutes require cities to record State Highway Fund monies in a State Tax Street <br /> Fund, but are silent as what other monies may be included. There are no comparative <br /> statutes for counties. The commingling of monies for road and street programs makes <br /> good business sense. - - <br /> We recommend the commingling of monies for road and street program be formally <br /> recognized as good business practice. -This could be accomplished by a revision of the <br /> Oregon Revised Statutes by the legislature or by an Attomey General's opinion. <br /> G. Clarify Oregon Constitufion Article IX Section 3a Term "Administration" <br /> Article IX, Section 3a of the Oregon Constitution allows the monies derived from taxes <br /> on the use of fuel by motor vehicles to be expended for the purpose of "administration." <br /> The term "administrations is not further defined by either the Constitution or Oregon's <br /> Revised Statutes. Lack of a definitive clarification has led to inconsistencies among <br /> both city and counties as to what costs constitute "administration." <br /> We recommend that a clamcation be made as to what costs constitute "administration" <br /> as presently stated in Article 1X, Section 3a of the Oregon Constitution. This could be - <br /> accomplished by an Attomey General's opinion. <br /> <br /> i <br /> Talbot Korvola & Warwick, ttP 29 <br /> <br />