98 Local Agency Audit of Hwy Trust Funds

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Local Agencies' Use of Highway Funds = ~ ~ - Performance Audit ~ - EXECUTIVE SUMMARY (Continued)- - . ~I sources. -.These monies typically reside in .a .dedicated fund such as the "entity" road fund:: These commingled monies are then used.for the purpose of paying for road and - 'ce a ~ other related costs::: ~ str a con traction maintenance debt serve nd - et s , . _ _._r... . We were unable to segregate State Highway Funds monies from monies received from other sources as we conducted this study. This does not impact our~report inregard to -the' rodent stewardshi "of rriornes:-`The iritemal control activrty performed is applicable P P to"all monies under the control of the counties and cities.`=`~~' i=' . In"the area of compliance we have reported =as if -all the dollars in'the' local fund" are subject to State Highway Fund statutes. We explain the impact ~of that convention in the applicable text.... ~ - - _ _ a` 1 We re ort on administrative and indirect (overhead) charges to State Highway Fund P _ .monies as those charges relate to the total of commingled local road monies. We had no alternative to this convention because it is not possible to segregate~expenditures. . Asummary of our_signficant findings regarding compliance are as follows: . 1. Three cities did not maintain documentation for the expenditure of 1 percent State Highway Fund monies for bike and footpaths. (See lntemal Controls Section A . 2. One county did not maintain a cost accounting system. (See Internal Controls Section D). 3. Three counties did not reconcile their cost accounting system to information contained in the general ledger. (See lntemal Controls Section D). 4. Four cities who established cost accounting systems did not reconcile the amounts to information contained in the general ledger. (See Internal Controls Section D). Talbot, Korvola & Warwick, ~ 2