i <br /> j LOCAL AGENCIES' USE OF HIGHWAY FUNDS <br /> TABLE OF CONTENTS <br /> i <br /> i <br /> Page <br /> INTRODUCTION 1 <br /> EXECUTIVE SUMMARY 1 <br /> 1 SCOPE AND METHODOLOGY 3 <br /> <br /> ~ DEFINITIONS 5 <br /> SELECTION OF COUNTIES AND CITIES 7 <br /> i <br /> OVERVIEW ~ - 7 <br /> INTERNAL CONTROLS 13 <br /> ~ COMPLIANCE WITH LAWS AND REGULATIONS 17 <br /> ADMINISTRATIVE AND INDIRECT (OVERHEAD) EXPENSES 18 <br /> EXPENSE SUMMARY 22 <br /> SUMMARY AND RECOMMENDATIONS 25 <br /> APPENDIX A - 30 <br /> <br />