Section 2
SECTION 2. Section eleven of the same Act is hereby amended to read as follows: "Sec. 11. Supervision and control of projects financed by the national government. — The provisions of any existing law, rule or regulation to the contrary notwithstanding, all highways work project financed by the national government through the Department of Public Highways expenditure program shall be under the control and supervision of the Department of Public Highways, subject to such laws, rules and regulations governing the prosecution of public works projects: PROVIDED, That local government projects supported by the national government through the Department of Public Highways expenditure program, whether for maintenance, rehabilitation, betterment or for improvement, shall be under the direct control and supervision of the respective local government units; PROVIDED, HOWEVER, That the Department of Public Highways shall set maintenance standards, planning requirements and control procedures governing the approval and release of national aid funds as necessary to carry out the requirements of Section eight of this Act, and for this purpose, may inspect the financial accounts, work records and maintenance sites of local authorities; PROVIDED, Further, That the Department of Public Highways shall adopt the necessary procedures for monitoring the financial and physical aspects of road maintenance activities of local governments, to by augmented by appropriate mechanisms for reporting on such maintenance activities which may be separately established by the Department of Finance and the Department of Local Government and Community Development in the exercise of their respective jurisdictions over local governments, as authorized by law."