Para 3.17.4 — MSO (Audit)
Original Rule Text
3.17.4 Local audit is to look into eligibility of contractors, investment decisions and implementations, methods adopted in selecting contractors, review of viability of the project, review of the project management system to ensure that the work is properly and effectively supervised and executed and that there is accountability throughout the various stages of the project.
What This Means
Local audit of World Bank projects must examine several critical areas: whether contractors were eligible to bid, whether investment decisions were sound, how contractors were selected, whether the project remains viable, and whether the project management system provides proper supervision, execution oversight, and accountability at every stage.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Verify eligibility of contractors participating in the project
- 2Examine investment decisions and their implementation
- 3Review methods used for selecting contractors
- 4Assess viability of the project overall
- 5Evaluate project management systems for supervision and execution
- 6Ensure accountability exists at all stages of the project
Practical Example
During local audit of a World Bank-funded urban transport project, the audit team discovers that the main civil works contractor was selected through limited tendering instead of the international competitive bidding required by the loan agreement. They also find no evidence of third-party quality supervision. Both findings are reported as serious lapses in project management and contractor selection.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'review of viability' mean in practice?▼
How does audit check contractor eligibility?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.