AUDIT PROGRAMME ROAD FUNDS

S/n Audit Objective Test of

Control
procedure
Substantive test
procedure
Documents to
be verified
Order number
01 Verifying of
maintenance
versus
development of
works
Confirm
whether
maintenance
was done in
line with
development
of works.
Obtain payment
vouchers and verify
whether maintenance
funds have not been
spent in development
expenditure and Vice
versa
Annual
performance
agreement,
Payment
vouchers.
3.0 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
02 Review of the
Road
maintenance
programmes for
local
government
authorities
Confirm
whether the
council
maintains the
road
maintenance
programme.
For the sample of
inventory sheets Obtain
the evidence whether
the council keeps
inventory and condition
data for road networks
and whether has been
updated annually.
Road Inventory
sheets and
programme of
works
4.1 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
03 Verify existence of
programme of road
maintenance prepared
by the council
Programme of
Road
maintenance
4.2 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
04 Verify whether Roads
included in the
maintenance
programme are also in
the inventory of the
council road network.
Inventory of
Roads and
programme
maintenance
schedule
4.3 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
05 Confirm whether
preparation of the road
maintenance
programme and the
roads council network
Road
maintenance
programme.
4.5 of the
Guidelines on
the Use and
Supervision of
Road funds
and priotization were
based on availability of
funds
for local
government
authorities
order no 01.
Of 2001
06 Obtain the evidence
whether selection and
priotization were based
on consideration of the
whole year Pass ability
4.7 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
08 Scrutinize the proposed
programme of work so
as to verify whether
interventions were pre
included and whether
road category, type,
and the condition of
the whole network has
been included in the
programme.
4.9 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
09 Verify whether Regional
Secretariat engineer
reviews programmes
prepared by Councils
and obtain his/her
opinion whether the
Council complies with
the guidelines.
Evidence of
programme
receipt from the
Regional
secretariat
4.10 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Verify whether
proposed maintenance
programme has been
submitted to the
regional secretariat for
advice and
recommendation.
4.11 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
10 Verify whether the
draft of maintenance
programme has been
endorsed to the district
Commissioner and
Obtain copies of
endorsed
programme
4.12 of the
Guidelines on
the Use and
Supervision of
Road funds
Regional Administrative
secretary after
incorporating advice
from the regional Roads
board
for local
government
authorities
order no 01.
Of 2001
11 Verify whether the
regional secretariat
engineer has compiled
programmes from all
councils in the region
and whether the same
has been submitted to
the road funds board
Evidence of
receipt of the
programme to
the road funds
board
4.13 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
12 Verify whether PMO-
RALG has signed the
performance agreement
with the road board on
behalf of the council
and whether the
council has signed the
performance agreement
with PMO-RALG for its
respective maintenance
programme.
Signed
performance
agreement
between the
council and
PMO-LARG.
4.14 And 4.15
of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
13 Review of
Procedures for
disbursement
of funds from
the Roads
funds.
Confirmation
of whether
disbursement
of funds has
complied with
procedures of
road funds.

Verify whether
disbursed funds are
based on approved
programme action plans
and amount of funds
received from treasury
and whether has been
disbursed on quarterly
bases.
Receipts on
disbursements.
5.1 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
14 Obtain the
acknowledgement
special letter for
receipt of funds to
PMO-RALG and Road
fund Manager
The copy of a
special
acknowledgeme
nt letter to
PMO-LARG.
5.3 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
15 Verify whether
information on receipt
of funds by the council
has been submitted to
Copy of Notice
board
advertisements,
acknowledgeme
5.4 of the
Guidelines on
the Use and
Supervision of
the members of
Parliament, Regional
Commissioner, District
Commissioner, and the
same has been place on
the notice board in
order to promote
transparence.
nt , copies of
letters verifying
acknowledgeme
nt letters from
the parliament
and the Regional
Commissioner.
Road funds
for local
government
authorities
order no 01.
Of 2001
17 Verify whether the
received fund has been
spent in accordance to
the approved
programme and
performance agreement
and whether the
council has not dictated
the use of funds in their
seating.
5.5 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
18 Verify whether the
received funds are
acknowledged by the
receipts and are posted
in the Cashbook
Bank statement,
Receipt books
and the
cashbook
5.6 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
20 Verify whether
disbursement of funds
in all quarters
depended on on
submission of financial
and physical progress
that has been accepted
by PMO-LARG.
Physical and
financial reports
5.7@5.8 of
the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
21 Obtain the evidence
whether road funds has
got a special account
and funds has been
spent in accordance
with the Roads tolls
(Amendment) act no.2
of 1998 and has been
spent in accordance
with the performance
agreement
List of Bank
Accounts,
Performance
agreements,
Payment
vouchers.
5.9 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001


22
Review of
norms for the
use of road
funds to be
followed by
local
government
authorities.

Review
expenditures
and verify
whether
complies with
road funds
guidelines.

For the sample of
payment vouchers and
contracts so as to
ascertain whether road
funds have been used
to purchase equipment
and motor vehicles
Payment
vouchers
,Contract
registers, Local
Purchase orders
6.2 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
23 Verify whether the
council director is the
accounting officer like
any other council funds.
6.4 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
24 Confirm whether the
council engineer or his
/her assistant is among
of signatories in one
group and is the
originator of payments.
6.5 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
25 Investigate whether
payments are done in
accordance with the
works contract
Engineers
certificates,
Contractor
invoices,
Payment
vouchers,
project progress
reports.
6.6 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Review the full council
minutes of meetings, so
as to verify whether
there has been
accountability of the
accounting officer on
misuse of road funds.
The full council
minutes of
Meetings.
6.7 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
26 Review contract signing
date and verify whether
contracts were entered
before receipt of funds,
which contravenes the
guidelines.
Contract
registers,
Contracts
6.8 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
27 Review of
preparation
and execution
for road works.
Confirm
whether
road works
were
prepared
and
executed
properly.
Reviews the execution
programmes and verify
whether all works
undertaken have
proper engineers
drawings,
specifications, and Bill
of quantities.
Contract files 7.1 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Review tender
documents so as to
verify whether have
been prepared in
accordance with the
Public procurement act
no.21 of 2004 and its
regulations and
whether procedures for
tenders were
transparent
The public
procurement act
and contract
file.
7.2, 7.3, 7.4,
and 7.6 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Verify whether the
council engineer has
been the signatory of
the contract as one of
the witnesses.
Contract
documents.
7.7 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Scrutinize the contract
and confirm whether
the Bill of quantities do
not contain superficial
items such as
contingencies and
supervision items.
Bill of
Quantities.
7.8 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Review and
Scrutiny of the
Road works.
Verify whether all roads
executed are in
accordance with the
performance agreement
with PMO-RALG
Performance
agreements and
Contracts.
8.1 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Inquire the council
engineer so as to verify
whether the same is
responsible for day to
day administration of
the road works in the
council.
8.2 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Review of replaced
planned road works and
verify the following:-
(a) Whether
replacement was
made after the
consent of from the
Permanent
secretary of PMO-
RALG and
(b) Despite the consent
confirm whether
the there is no
significant changes
on money approved
and quality of work
for the new road in
accordance with
specifications
provided in the
given consent.
The permission
letter from PMO-
LARG,
Contracts.
8.4 of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001

Review contracts and
verify whether the
quality of works are
closely inspected,
works are completed
within time , cost
,quality and quality
stipulated in relevant
contracts , certificates
,site instructions ,site
meetings minutes
,payment certificates
and all correspondences
are in the contract file
and whether works
measurements are
recorded in the
measurement sheet and
have attached on the
certificate.
Contract
register
8.5,8.6
8.7.and 8.8 of
the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
On the sample of
contracts, confirm
whether each contract
has its own file
containing contract
documents such as site
instructions, site
meetings minutes,
payment certificate,
and all nonresponses as
regards to the contract.

Contract files. Section 8.8 of
the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Confirm
whether
contractors
employ labor
available in
villages.
For the sample of road
works verify whether
local fundis and
villagers especially
young people and
women have been
involved.
Contract files,
sample of village
minutes of
meetings.
Section 8.9
of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001
Confirm
whether
contracts
under force
account are
adequately
For the sample of
contracts executed
under force account
basis confirm whether
contracts were entered
on need basis and as to
Contract
register,
contract files.
Section 8.10
of the
Guidelines on
the Use and
Supervision of
Road funds
supervised by
external
agents.
whether regional
secretariat engineer has
been involved in
supervision of such
contracts.
for local
government
authorities
order no 01.
Of 2001
Review and
assessment of
councils
technical
capacity and
whether
special
expertise in
execution of
contracts.
For the sample of
contracts confirm
whether special
expertize is required in
execution of contracts.
Section 8.11
of the
Guidelines on
the Use and
Supervision of
Road funds
for local
government
authorities
order no 01.
Of 2001