OFFICE OF THE AUDITOR GENERAL, NEPAL Established on 29th June 1959 Member of INTOSAI & ASOSAI

Office of Auditor General of Nepal (OAG/N) Vision Enhance good governance through accountability and transparency in the public sector. Mission Provide trust worthy, effective and independent audit for efficient management and utilization of public resources

AUDIT MANDATE Article 122 of the Interim Constitution of Nepal,2006 and Audit Act,1991 empowers the Auditor General to conduct audit of the government offices and corporate bodies with due consideration to the Economy, Efficiency and Effective utilization of resources and propriety thereof.

Auditing Jurisdiction Central Government Local governments Entities owned or controlled by the Central, Local Governments & other entities owned or controlled by such government owned or controlled entities, except trust fund.

Auditing Jurisdiction cont.. Bodies not owned but substantially funded by the governments Audit of Receipt of the government Foreign Aid or grants

Organization Structure One office all over the country located in Kathmandu Auditor General 1 Deputy Auditor General 4 Assistant Auditor General 14 Director 42 Audit Officer 144 Audit superintendent 150 Other staffs 95 Total : 449

Audit mandate of SAIs/Nepal for Audit on Natural Resources Environmental protection Act 1997 Environmental protection Regulation1997, Environmental polices Forest Act,1993 Forest Regulation,1995

Conti--- Water Resource Act 1993, Water Resource Regulation, National park and Wildlife Conservation Act,1993 Mine and Mineral Act,1985 Electricity Act,1992

Standards followed by OAG/N OAG/ Nepal is following INTOSAI Auditing Standards as well as government auditing standard adopted by OAG Nepal.

Government Policies POLICES (common) Manage natural and physical resources efficiently and sustainable Balances between efforts and environmental conversation for sustainable fulfillment of the basic needs of the people Mitigate adverse environmental impacts of development projects and human actions Integrate environment and development through appropriate means. Environmental impact is mandatory for large scale project.

Government Policies contd… Forest- Sustainable development with active participation of common people Supply forest product to community with systematic way Manage correlation with forest and agriculture Hydro electricity- Development of hydro electricity rower to enhance the life of common people To export hydroelectricity power To help national economy Mine- Development of industrial environment for the development of mine

Total length of River 45000k.m. Number of rivers 6000 Total length of River 45000k.m. Potentiality of hydro electricity 83000 MW New programe of hydro electricity in new budget of Nepal- Production and utilization of ten thousand mg hydro electricity power within 10 years

Efforts Policy formulation for environmental protection in 1981 Implementation of National environment policies since 1987. Execution of National environment protection action plan 1992 Rectification of international treaties relating to environmental issues. execution of environment act 1996 and regulation 1997 Initiation on Environment evaluation of e

continue Environment education in academic sector. Execution of Ozen level damaging materials control regulation 2000. Programme implementation relating to Biodiversities protection and sustainable development.

Type of Audit Regularity Audit Financial Audit Focus on controls necessary for safe guarding of assets and resources for ensuring accuracy of accounting records compliances Compliance Audit Focus on controls necessary for compliance with laws and regulations Performance Audit

Audit of Natural Resources The OAG/N examine issues of natural resources from the perspective of performance and propriety audit. Natural resources auditing going ahead under the general provisions of the constitution and audit act. SAI/N has not yet developed specified standard or guideline for EA.

Audit Procedure of OAG/N Selection of Issues Planning of audit Execution of audit Reporting of audit Follow up

Planning knowledge about client Define Audit objectives Identify risks, criteria for evaluation and MOPS. formulation of Planning documents.

Define Audit objectives Minimizing the effect of environmental problem and to ensure sustainable development Adequacy control and condition of exiting environmental management system Evaluation of regularity aspect of environment related national and international laws, accords. Guidelines and policies

Execution of audit Formulation of Audit Programme Execution of audit Programme. Assessment of control system Risk assessment. Performance evaluation Using different Audit Techniques: Interview, Focus Group Discussion, Observation, Inspection, Analysis, Questionnaire,

Collection and analysis of Audit evidence Evaluation and analysis of financial and statistical data. Review and evaluation of collected information and evidence. Use of an experts.

Reporting Preliminary report: This report is issued to each concerned entities after concluding audit work, Final report: It is issued to chiefs accountable officer getting response from management on preliminary audit report .

Follow up follow up action is taken to assure the improvement made by the clients on the basis of our observation and suggestions of the previous year's audit report.

Annual report AG/N shall submit annual report to the President in five volume as follows and laid in the parliament for necessary actions: Executive Summary : comprises essence of all key findings and recommendations Volume 1: Major departmental functions , consolidated statement of government, revenue as well as expenditure.

Annual Report (cont'd) Volume 2: Performance audit, It is done in selected program/Project. Volume 3: Public enterprises, Boards and committees. Volume 4: Government Chart of accounts. Volume 5: Local Government (District development committee)

Problems Lack of specified standards and guideline for Natural resource and environmental audit Physical infrastructure skilled manpower to carryout the audit. Lack of coordination among govt. and other organization.

FOR FURTHER DETAILS: Please visit : www.oagnep.gov.np

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