(1) According to rule 5, a board of directors will be constituted as follows for allocating funds and monitoring the activities carried out from the allocated funds:-
(a) Secretary, Ministry of Federal Affairs and Local Development – ​​Chairman
(b) Representative, (Gazetted First Class) Ministry of Finance – Member
(c) Joint Controller General of Accounts, Office of Controller General of Accounts – Member
(d) Representative, Nepal Municipality Association – Member  Withdrawn by the second amendment.  Amended by First Amendment.
(e) Officer-Member-Secretary designated by the Ministry of Federal Affairs and Local Development (2) The committee can organize its own procedures.
(3) The chairperson and members of the committee will receive the meeting allowance as determined by the committee with the approval of the Ministry of Finance for participating in the meeting of the committee.
(4) Manpower and budget required to conduct the work of the committee and monitor the use of funds shall be as approved by the committee.
(5) For the purpose of sub-rule (4), the maximum extent of the budget approved by the committee shall not exceed one percent of the total amount of the fund.