Question

What is your opinion on this statement for the audit of the effectiveness of the city's pothole repair program and how to achieve the objectives?

The goals and objectives of a capital asset maintenance program is to ensure: capital assets are maintained at a level of condition that allows them to deliver services that improve quality of life for citizens; the maximum useful life of the equipment can be realized; they are maintained and repaired economically, effectively and timely; they are kept safe for government and public use.

In order to audit for the effectiveness of a city's pothole repair program, the auditor should first review the city's pothole repair maintenance policies, review the long-range planning documents, review the budget requests and interview top managers . To determine the effectiveness of the pothole program, the auditor should determine:

• how the preventive maintenance frequency and routine are established?
• whether the actual preventive maintenance frequency is in accordance with the entity's policy?
• whether there are maintenance backlogs and, if so, why are they occurring?
• the controls for ensuring the quality of preventive maintenance?
• how non-routine pothole repair projects are scheduled, and assess the implications of weaknesses in scheduling maintenance?
• the management reporting system regarding maintenance effectiveness?
• if the entity's procedures and record keeping help to control costs?
• managerial controls over maintenance efficiency are working?
• if controls over spare parts, sub-assemblies and supplies exist?
• if scheduling of maintenance and repair assignments makes effective use of employee time and properly supervised?
• the sufficiency of controls over overtime and sick time.

Answer 1

Additional points:

1. As the audit is of effectiveness, a budget control over the activity forms the prima facie requirement. A study of the estimated budget over the actual should be done ensuring proper justifications over variances found.

2. Tender documents should be studied including earnest money deposits (if any). Further timely repayment of dropped tenders should be checked.

3. As a civil auditor, the assessment of need is important. Previous audit report should be checked to insure that the repair work is as per the timeline prescribed and in case of a deviation, appropriate comments are obtained.

4. Quality Control should also form a vital part in checking the efficiency of the audit. Appropriate measures should be ensured such as Expert Opinion for ensuring optimum assurance in reporting.

Thus the audit should be conducted in a holistic approach considering the importance of the same in public safety.