Section R926-3-3 - Requirements and Procedures for Expenditure of Funds(1) Expenditure of Funds, Generally. Local highway authorities may only spend class B or class C road funds in accordance with the requirements of applicable state law, federal law, and Rule R926-3. (a) Local highway authorities may spend class B or C road funds to design, construct, or maintain eligible class B or class C roads and related facilities and to maintain class D roads.(b) Local highway authorities may use class B or class C road funds to purchase equipment and machinery to construct and maintain class B or class C roads and related facilities.(c) Local highway authorities may allow class B or class C road funds to accumulate until sufficient funds are available for more extensive road projects by investing the funds in accordance with Title 51, Chapter 7, State Money Management Act. Local highway authorities shall credit interest earned on their invested class B or class C road funds to their class B or class C road fund accounts.(d) When Local highway authorities accept an allocation of class B or class C road funds, they agree to use the funds according to applicable law. If a local highway authority fails to comply with applicable law regarding using class B or class C road funds, the local highway authority has breached the agreement and has violated Rule R926-3.(e) If a local highway authority fails to comply with applicable law regarding the use of class B or class C road funds, the Department has the authority to withhold future allocations of class B or class C funds until the local highway authority demonstrates that it has complied with applicable law, including Rule R926-3.(2) Accounting, Annual Audits, and Reports. (a) Local highway authorities shall follow the requirements of Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local Entities Act.(b) Local highway authorities that receive class B or class C road funds shall cause an audit, review, compilation, or fiscal report to be made by a competent certified public accountant of their accounts through which class B or class C road funds are received and spent at least once annually.(c) Local highway authorities shall provide access to reports generated by annual audits, reviews, compilations, or fiscal reports required by Subsection R926-3-3(2)(a) to the Department within six months of the close of their fiscal year.(d) Local highway authorities shall annually provide the Department with access to sufficiently detailed information to show which projects and roads are utilizing class B or class C road funds.(e) If a local authority performs work by force account as authorized in Section 72-6-109, the local highway authority shall account for the costs of the project following Section 72-6-109.Utah Admin. Code R926-3-3
Amended by Utah State Bulletin Number 2016-9, effective 4/8/2016Amended by Utah State Bulletin Number 2016-21, effective 10/12/2016Adopted by Utah State Bulletin Number 2023-06, effective 3/10/2023