sundar Shrestha Deputy Director Of Studies NAsc Financial Accountability and Auditing sundar Shrestha Deputy Director Of Studies NAsc

Session Outline Concept Principles Objectives Existing Mechanism

Financial Accountability Financial accountability concerns tracking and reporting on allocation, disbursement, and utilization of financial resources, using the tools of budgeting, accounting and auditing.

Principles of Accountability Specify responsibility and authority Provide guidance and support Monitor and evaluate exercise of responsibility and authority Take appropriate action

cy{ dGqfno , d=n]=lg=sf=, sf]=n]=lg=sf=, Documents Processes Existing Mechanisms Documents Processes Bodies: ;+:yfut Joj:yf cy{ dGqfno , d=n]=lg=sf=, sf]=n]=lg=sf=,

Bodies CIAA, /fli6«o ;tstf{ s]Gb| dGqfno÷ ljefu÷sfof{nox? Policies g]kfnsf] ;+ljwfg, df}lns xsx? /fHosf] bfloTj lgb]{zs l;4fGt tyf gLltx?

cfly{s sfo{ljlw P]g, @)%% / lgodfjnL, @)^$ Policies ;fj{hlgs vr{sf] k|efjsf/L Joj:yfkg cfly{s sfo{ljlw P]g, @)%% / lgodfjnL, @)^$ ;fj{hlgs vl/b P]g, @)^# / lgodfjnL, @)^$ e|i6frf/ lgjf/0f P]g, @)%( lghfdtL ;]jf P]g, @)$( / lgodfjnL, @)%) ;"rgfsf] xs ;DaGwL P]g, @)^$ / lgodfjnL, @)^% Justice system: Reward and Punishment

Maintain Financial Discipline Objectives Maintain Financial Discipline Allocation of Resources in Strategic Priorities Ensuring Value for money

Auditing Session Outline Concept Objectives Approaches Process Types of Audit Types of Beruju Public Audit and Social Audit Public Hearing and Fiduciary Risk Case

Concept Auditing is defined as a systematic and independent examination of data, statement, records, operations and performance of an organization for a specified purpose.

Objectives Verify the accuracy of the books of account Verify the validity of the documentary evidence of the transactions Verify the system of internal check and control Verify the assets and liabilities Prevent errors and fraud Detect errors and fraud

Financial Statement Audit Auditing Approaches Compliance Audit Financial Statement Audit Performance Audit Risk Based Audit  

Auditing Process Notification Planning Opening Meeting Management Representation Letter Field work Communication

Auditing Process Report Drafting Management Response Closing Meeting Report Distribution Follow up

Types of Audit Pre Audit: Before payment of any financial transactions, these related documents will be verified by the staff of account section. Internal Audit: Internal audit is an independent appraisal within a department which operates as a service to management by measuring a evaluating the effectiveness of the internal control, but in GoN internal audit is being done by DTOs. Final Audit: Constitutional provision that requires final audit to look into to compliance ,economy, efficiency, effectiveness and justification (thus, basically the final audit has two components : Financial statement audit and Performance audit)

dxfn]vfk/LIfssf] %$ cf}+ jflif{s k|ltj]bg, a]?h" cs ? nfvdf juL{s/0f ;/sf/L sfof{no ;ldlt tyf cGo ;+:yf / lhNnf ljsf; ;ldlt hDdf s'n j]?h"sf] k|ltzt hDdf a]?h" 88,85,59 8,58,10 97,43,69 100.00  ! c;'n ug'+kg]+ 40,43,89 94,78 41,38,67 42.48  @ lgoldt ug'+kg]+ 24,40,32 6,07,78 30,48,10 31.28  clgoldt ePsf] 5,13,55 2,09,64 7,23,19 7.42  k|df0f sfuhft k]; gePsf] 18,14,25 3,70,96 21,85,21 22.43 lhDd]jf/L g;f/]sf] 14 - 0.00  zf]wegf+ glnPsf] 1,12,38 27,18 1,39,56 1.43 # k]ZsL 24,01,38 1,55,54 25,56,92 26.24  sd+rf/L k]ZsL 40,91 3,21 44,12 0.45  df]lanfOh];g k]ZsL 16,61,73 17.05  k|tLtkq k]ZsL 2,98,56 3.06  ;_:yfut k]ZsL 4,00,18 1,52,33 5,52,21 5.68 

Social Audit and Public audit A social audit is a way of measuring, understanding, reporting and ultimately improving an organization’s social and ethical performance. Social auditing is taken up for the purpose of enhancing local governance, particularly for strengthening accountability and transparency in local bodies. Public auditing is the process of sharing, assessing and auditing all financial transactions, decisions and processes of financial expenses

Public Hearing and Fiduciary Risk Public hearing is an open discourse in public place or discussion process on the public concerns or themes/issues among the general public, stakeholders (right holders) and responsible officials (duty bearers) of organization and line agencies Fiduciary Risk Funds: (I) are not used for the intended purposes (II) are not recorded and accounted for; and (III) do not achieve the value for money objectives of the program they financed