Financial Control Systems in Public Sector Facilitated by: Chandra Kanta Bhandari, FCA, CPFA

Presentation Outline Concept Financial Control Measures Internal Control Auditing Financial Non- compliance Chandra Kanta Bhandari, FCA, CPFA

Why Financial Controls????? To ensure that: Optimum usages of financial resources Value for money is achieved Agent serves principal’s interest in using entrusted financial resources There exists effective accountability measure Financial transactions and events are made transparent Ultimate objective in public sector is to: make a difference in the lives of citizen Chandra Kanta Bhandari, FCA, CPFA

How Financial controls can be exercised? Through management/ executive effected policies and procedures; Laws, rules and regulations, directives, guidelines etc. This may be in the form of internal control including internal audit Through external scrutiny and audit including larger monitoring by civic society, lobbying groups Parliamentary scrutiny or reporting to parliament External audit Civic society engagement Chandra Kanta Bhandari, FCA, CPFA

Internal Controls – Why? Internal control is an integral process that is effected by an entity’s management and personnel and is designed to address risks and to provide reasonable assurance that in pursuit of the entity’s mission to ensure that the following objectives are being achieved: executing orderly, ethical, economical, efficient and effective operations; fulfilling accountability obligations; complying with applicable laws and regulations; safeguarding resources against loss, misuse and damage. Chandra Kanta Bhandari, FCA, CPFA

Controls- Why? To achieve entity’s objectives related to operations, reporting, and compliance Chandra Kanta Bhandari, FCA, CPFA

Chandra Kanta Bhandari, FCA, CPFA

5 components of internal control Each components contains several principles which are the requirements of each component Chandra Kanta Bhandari, FCA, CPFA

Principles of effective internal control Demonstrates commitment to integrity and ethical values Exercises oversight responsibility Establishes structure, authority and responsibility Demonstrates commitment to competence Enforces accountability Control Environment Specifies suitable objectives Identifies and analyzes risk Assesses fraud risk Identifies and analyzes significant change Risk Assessment Control Activities Selects and develops control activities 11. Selects and develops general controls over technology Deploys through policies and procedures Uses relevant information Communicates internally Communicates externally Information & Communication Monitoring Activities Conducts ongoing and/or separate evaluations Evaluates and communicates deficiencies

Chandra Kanta Bhandari, FCA, CPFA

3F – Public Sector Perspective Accountability Transparency Integrity Function (Constitution, relevant Laws) Functionary (3 Tiers of Govt, Organs of Govt) Fund/ Finance (Raising & Utilising) Chandra Kanta Bhandari, FCA, CPFA

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;fj{hlgs ljlQo Joj:yfkgM g]kfnsf] ;Gbe{ ;+j}wflgs Joj:yfx? M cfly{s sfo{ k|0ffnL -efu !), !^ / !(_, sfg"gL Joj:yfx? M cfly{s sfo{ljlw P]g, ;fj{hlgs vl/b P]g, /fli6«o k|fs[lQs >f]t tyf ljQ cfof]u P]g, :yfgLo ;/sf/ ;Grfng P]g, ljlgof]hg P]g ;/sf/sf] gLlt tyf sfo{qmd / ah]6 aStJo ljleGg ;+:yfut Joj:yf M ;+a}wflgs lgsfosf] Joj:yf, dn]lgsf, ;fj{hlgs vl/b cg'udg sfof{no, ;fj{hlgs n]vf ;ldlt Chandra Kanta Bhandari, FCA, CPFA

PFM Institutions in Nepal Parliament (PAC and other committees) at Center and provinces and Local Level Assemblies Ministry of Finance / Provincial planning and finance ministry National Planning Commission Public Procurement Monitoring Office Financial Comptroller General Office/ Provincial FCGO National Natural Resources and Fiscal Commission Inter-government Fiscal Council Office of the Auditor General Chandra Kanta Bhandari, FCA, CPFA

Financial Procedural Act, 2055 Provides procedures for regularize and manage financial events of the government relating to: Operation of consolidated fund or other government funds Budget formulation Budget release and expenditure Book keeping Internal control arrangements Audit Settlement of irregularities pointed out by the audit Chandra Kanta Bhandari, FCA, CPFA

महालेखा नियन्त्रक कार्यालय नेपाल सरकारको संचित कोष सञ्चालन गर्ने जिम्मेवार निकाय, बजेट कार्यान्वयनमा सहजीकरण गर्ने, सरकारको आय र व्ययको लेखा राख्ने र सो को केन्द्रिय वार्षिक विवरण तयार गरी लेखा परीक्षाणकालागि महालेखा परीक्षकको कार्यालयमा पेश गर्ने, अiन्तरिक लेखापरीक्षण गर्ने, निवृत्तिभरण व्यावस्थापन गर्ने, सरकारी बाँकी असूल उपर गर्ने, प्रचलित कानुनद्वारा तोकिएका अन्य कार्यहरु Chandra Kanta Bhandari, FCA, CPFA

sf/f]jf/sf] n]vf+sg / k|ltj]bg Plss[t cfly{s ;+s]t tyf jlu{s/0f / JofVof, @)&$ @)&$.)&.)! Dff dxfn]vf k/LIfsjf6 :jLs[t ;+3Lo ;+/rgf cg'?k ;/sf/sf tLg} txsf] cfly{s sf/f]jf/df nfu" x'g] k|b]z / :yfgLo txdf cf=j= @)&$.&% b]lv nfu" ;+3df cf=j= @)&%.&^ b]lv nfu" kl/jlt{t zf;sLo k|0ffnL tyf Government Finance Statistics Manual 2014 (IMF) Use of NPSAS as financial Reporting Standards Chandra Kanta Bhandari, FCA, CPFA

:yfgLo tx -:yfgLo ;/sf/ ;~rfng P]g, @)&$_ n]vf ;ldltsf] Joj:yf -bkmf @@_ :yfgLo /fh:j k/fdz{ ;ldlt -bkmf ^%_, ;|f]t cg'dfg tyf ah]6 ;Ldf lgwf{/0f ;ldlt - bkmf ^^_ tyf ah]6 tyf sfo{qmd th{'df ;ldlt -bkmf ^&_ ah]6sf] cg'dfg sfo{kflnsfjf6 :jLs[t u/fO{ c;f/ !) ut] leq ;efdf k]z ug]{ -bkmf &!_ . k]z ePsf] ah]6dfly sfo{tflnsf agfO{ !% lbg leq 5nkmn ;DkGg u/L kfl/t ug{ jf ;'emfj ;lxt sfo{kflnsfdf k7fpg' kg]{ sfof{kflnsfn] % lbg leq kl/dfh{g u/L jf ;f] ug{ gkg]{ eP sf/0f ;lxt ;efdf k7fpg] . ;efn] c;f/ d;fGt leq ah]6 kfl/t ug{'kg]{ . n]vf k/LIf0f dxfn]vfk/LIfsjf6 u/fpg' kg]{ . -bkmf &&_ sfg"g adf]lhd cfkm\gf] cfo Joosf] cfGtl/s n]vfk/LIf0f u/fpg' kg]{ . cfGtl/s lgoGq0f k|0ffnL tof/ u/L sfof{Gjog ug'{kg]{ . -bkmf &*_ Chandra Kanta Bhandari, FCA, CPFA

;fj{hlgs vl/b P]g, @)^# tyf lgodfjnL @)^$ ;fj{hlgs vl/b ;DaGwL sfo{ljlw, k|ls|of tyf lg0f{onfO{ cem a9L v'nf, kf/bzL{, j:t'lgi7 / ljZj;gLo agfpg, ;fj{hlgs vl/b k|ls|ofdf k|lt:kwf{, :jR5tf, O{dfGbf/Ltf, hjfkmb]xLtf / ljZj;gLotf k|j¢{g u/L ldtAooL tyf ljj]sk"0f{ 9ª\uaf6 ;fj{hlgs vr{sf] clwstd k|ltkmn xfl;n ug{ / ;fj{hlgs lgsfon] lgdf{0f sfo{ ubf{ u/fpFbf, dfn;fdfg, k/fdz{ ;]jf tyf cGo ;]jf vl/b ubf{ To:tf] vl/bsf] Joj:yfkg Ifdtf clej[4L u/L pTkfbs, ljs|]tf, cfk"lt{stf{, lgdf{0f Joj;foL jf ;]jf k|bfosnfO{ lagf e]befj ;fj{hlgs vl/b k|ls|ofdf ;xefuL x'g] ;dfg cj;/ ;'lglZrt ug{ Chandra Kanta Bhandari, FCA, CPFA

e|d0f vr{ lgodfjnL @)^$ -;+zf]wg ;lxt_ ;/sf/L sfdsf] l;nl;nfdf e|d0f ubf{ ljleGg txsf kbflwsf/L, sd{ef/L jf cGo JolQmn] kfpg] ;'ljwf, e|d0f vr{, b}lgs eQf tyf cGo vr{nfO{ Jojl:yt ug{ . k]ZsL lbbf a9L gx'g] u/L lbg] . ;dod} km5\of}{6 ug]{ . ;dod} km5\of}{6 gu/]df Jofh ;lxt c;"n ug]{ . Chandra Kanta Bhandari, FCA, CPFA

Role of Central Bank Bank of the Government Support Govt’s financial policies through monetary policy Aggregate fiscal information Controller of financial system Support government to make balance fiscal position Coordinate with FCGO (the treasurer) in making government payments and revenue collection Chandra Kanta Bhandari, FCA, CPFA

;+3Lo cfly{s sfo{k|0ffnL -efu !)_ !!%= s/ nufpg jf C0f lng gkfOg] !!^= ;+3Lo ;l~rt sf]if !!&= ;+3Lo ;l~rt sf]if jf ;+3Lo ;/sf/L sf]ifaf6 Joo !!*= ;+3Lo ;l~rt sf]ifdfly Jooef/ !!(= /fh:j / Joosf] cg'dfg !@)= ljlgof]hg P]g !@!= k"/s cg'dfg !@@= k]ZsL vr{ !@#= pwf/f] vr{ !@$= ;+3Lo cfsl:ds sf]if !@%= cfly{s sfo{ljlw ;DaGwL P]g Chandra Kanta Bhandari, FCA, CPFA

efu–!^ k|b]z cfly{s sfo{k|0ffnL @)#= s/ nufpg jf C0f lng gkfOg] @)$= k|b]z ;l~rt sf]if @)%= k|b]z ;l~rt sf]if jf k|b]z ;/sf/L sf]ifaf6 Joo @)^= k|b]z ;l~rt sf]ifdfly Jooef/ @)&= /fh:j / Joosf] cg'dfg @)*= k|b]z ljlgof]hg P]g @)(= k"/s cg'dfg @!)= k]ZsL vr{ @!!= pwf/f] vr{ @!@= k|b]z cfsl:ds sf]if M @!#= cfly{s sfo{ljlw ;DaGwL P]g Chandra Kanta Bhandari, FCA, CPFA

efu–!( :yfgLo cfly{s sfo{k|0ffnL @@*= s/ nufpg jf C0f lng gkfOg] @@(= :yfgLo ;l~rt sf]if @#)= ufpFkflnsf / gu/kflnsfsf] /fh:j / Joosf] cg'dfg Chandra Kanta Bhandari, FCA, CPFA

Effu @@ dxfn]vf k/LIfs @$)= dxfn]vf k/LIfs @$!= dxfn]vf k/LIfssf] sfd, st{Jo / clwsf/ ;j} txsf] ;/sf/sf ;j} c+ux?, ;'/Iff lgsfo k"0f{ :jfldTjsf ;+ul7t ;+:yfsf] n]vfk/LIf0f clwsf+z :jfldTjsf ;+ul7t ;+:yfsf] n]vfk/LIfs lgo'lQm ubf{ k/fdz{ n]vf 9f+rf :jLs[t ug]{ . lgoldttf, ldtJooLtf, sfo{bIftf, k|efjsfl/tf / cf}lrTosf] b[li6sf]0fjf6 n]vfk/LIf0f ug{'kg]{ . Chandra Kanta Bhandari, FCA, CPFA

PFM Success Source: CAPA Chandra Kanta Bhandari, FCA, CPFA

Why Audit ? To Promote Accountability, Transparency and Integrity Accountability is the obligation to render an account for a responsibility conferred. It presumes the existence of at least two parties: one who allocates responsibility; Citizen to their representative to Executives and one who accepts it with the undertaking to report upon the manner in which it has been discharged Chandra Kanta Bhandari, FCA, CPFA

Financial Accountability Financial accountability is primarily understood as the relationship between the citizens, as accountors, and the Government, as an accountee, where the citizens hold the Government to account for the stewardship of public money. The essence of financial accountability is an obligation of the Government to assure the citizens that money is spent in the best possible and effective way. The Government has to provide answers and justifications for its actions and to regularly inform the public on how it spends the public funds. Chandra Kanta Bhandari, FCA, CPFA

Financial Accountability contd…… Financial accountability results from holding an individual accountable for effectively performing a financial activity, such as a key control procedure within a financial transaction process. A well-defined financial accountability structure serves as the foundation for establishing effective financial processes. Ultimate result is sound financial discipline Chandra Kanta Bhandari, FCA, CPFA

Financial Accountability and Fiduciary Risk A risk is probability of an unintended occurrence causing a negative result. Fiduciary risk is the risk that funds will not be used for their intended purposes, will not achieve value-for-money and/or will not be properly accounted for. Fiduciary risks are the combination of both process risks and result risks. Country systems aimed at financial accountability need to address fiduciary risks Chandra Kanta Bhandari, FCA, CPFA

Dimensions of accountability who is accountable? to whom? for what? how it is secured and measured? Chandra Kanta Bhandari, FCA, CPFA

Whose Accountability Organs of Government (Legislature, Executive, Judiciary at all level of government) Public servants Those holding public posts Those receiving benefits from public purse WHY THEY are accountable? Because they are entrusted with public resources for performance of certain well-defined functions and given power to ……. Chandra Kanta Bhandari, FCA, CPFA

Accountability for WHAT? - Criteria Accountability for results – output, outcome Accountability for financial considerations in decision-making - due regard for probity, prudence, and value for money Accountability for management of financial resources Readily available information and advice on financial management, Chandra Kanta Bhandari, FCA, CPFA

Mechanism of Accountability Lead by the legislature – PAC and other committees Oversight by ministry of finance Performance reports by ministries and departments Internal audit Audit by Supreme Audit Institution Making audit reports accessible to public Chandra Kanta Bhandari, FCA, CPFA

cfGtl/s n]vfk/LIf0f (Internal Audit) æcfGtl/s n]vfk/LIf0fÆ eGgfn] cfly{s sfo{ljlw P]g, @)%% sf] bkmf !^ -!_ cg';f/ dxfn]vf lgoGqs sfof{no cGt{ut sf]if tyf n]vf lgoGqs sfof{non] ug]{ n]vfk/LIf0f ;D´g' k5{ . ;+u7gleqs} :jtGq lgsfoåf/f Joj:yfkgsf] ;xof]usf] nflu ul/g] n]vfk/LIf0f xf] . sf/f]af/sf] l;nl;nfdf eP u/]sf uNtLnfO{ lgoldttfsf] b[li6n] tTsfn} ;Rofpg Joj:yfkgnfO{ cf}+Nofpg] sfo{ u5{ . clGtd n]vfk/LIf0fsf] k"jf{wf/ tof/ u/L To; sfo{nfO{ sd ;do / vr{ nfUg] agfpg] sfo{{ u5{ . ;Nnfxsf/sf] e"ldsf u5{ . Chandra Kanta Bhandari, FCA, CPFA

cfGtl/s n]vfk/LIf0f (Internal Audit) dxfn]vf lgoGqs sfof{non] cfGtl/s k|of]hgsf] nflu cfGtl/s n]vfkl/If0f lgb]{lzsf hfl/ ul/ nfu" u/]sf] 5 . ljsf; ;ldlt P]g, @)!# cg';f/ :yflkt ;ldltx?, k|lti7fg, kl/ifb cflb :jfoQ ;/sf/L lgsfox?df cfGtl/s ?kdf u7g u/]sf cf=n]=k= zfvfaf6 jf g]kfn rf68{ PsfpG6]G6 ;+:yf -ICAN) df btf{ ePsf n]vfk/LIfs Chartered Accountant (CA) / Register Auditor (RA) jf6 cfGtl/s n]vfk/LIf0f sfo{ ;Dkfbg x'G5 . lghL If]qsf sDklg jf ;+:yfsf] cfGtl/s n]vfk/LIf0f g]kfn rf68{ PsfpG6]G6 ;+:yfdf btf{ ePsf CA / RA jf6 x'G5 . Chandra Kanta Bhandari, FCA, CPFA

;/sf/L n]vfk/LIf0fsf] p2]Zo cfly{s sf/f]af/df lgoldttf, ldtJolotf, sfo{bIftf, k|efjsfl/tf / cf}lrTo k'li6 eP gePsf] d"NofFsg ug'{ . ;fwg ;|f]tsf] kl/rfngdf bIftf sfod u/L ;Defljt gf]S;fgL /f]Sg d2t ug]{ . ;+u7gfTds ;+/rgf, gLlt / k|lqmofdf ;'wf/ ug{ ljsNkx? klxNofpg ;'emfp lbg' . ;fj{hlgs hjfkmb]xLtf, kf/blz{tf / lgi7f ;bfrf/ sfod ug{ pTk|]l/t ug'{ . nIo / pknlJw lar d"NofFsg ug{ ;'rgf,tYofFs / hfgsf/L k|bfg ug'{ . Chandra Kanta Bhandari, FCA, CPFA

clGtd n]vfk/LIf0f M ;+j}wflgs tyf sfg"gL Joj:yf Part 22 of the constitution in Article 240 and 241 contains provisions relating to: appointment of AG, terms of office, remuneration, functions, duties and powers of the AG AG is empowered to carry out audits of the accounts of : the office of the Prez and Vice-prez, the Supreme Court, Federal Legislature-Parliament, Provincial Parliament, Provincial Government, Local Bodies, Constitutional bodies and their offices, the courts, the Office of the Attorney General, Nepal Army, Nepal Police or Armed Police Force including all federal and provincial government offices and other entities as per prescribed in Laws in such manner as may be determined by law, with due consideration given to the regularity, economy, efficiency, effectiveness and the propriety thereof. Chandra Kanta Bhandari, FCA, CPFA

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n]vfk/LIf0f ;DjGwL tl/sf M bkmf # ;/sf/L sfdsf] 7]Ssf lng] lgdf{0f Joj;foL / cfk"lt{stf{ jf ;/sf/L sfdsf] lhDdf lng] ;+:yf jf JolQmnfO{ ;d]t To:tf] 7]Ssf jf cfk"lt{ jf cGo ;/sf/L sfd;Fu ;DalGwt sfuhft, cfGtl/s /fh:j sfof{noaf6 s/ k/LIf0f ePsf kmfOn tyf yk k|df0f sfuhft k]z ug{ nufpg, n]vfk/LIf0fsf] sfddf s'g} ljz]if1sf] ;]jf pknAw ug{ / cfjZos k/]df plrt kfl/>lds lbO{ s/f/df sfd nufpg . n]vfk/LIf0f ul/g] lgsfon] ckgfPsf ;"rgf k|ljlwdf dxfn]vfk/LIfs jf dxfn]vfk/LIfssf] sfof{nosf sd{rf/Lsf] kx'Fr x'g] . Chandra Kanta Bhandari, FCA, CPFA

n]vfk/LIf0f ;DjGwL tl/sf M -bkmf #s= ljljw ljifosf] n]vfk/LIf0f_ / bkmf #v= ;fdlos n]vfk/LIf0f_ n]vfk/LIf0f ug'{kg]{ lgsfosf] ljQLo n]vfk/LIf0fsf] cltl/Qm sfo{d"ns, ;"rgf k|ljlw, ljlwlj1fg, n}lus, jftfj/0fLo h:tf ljifosf] n]vfk/LIf0f ug{ ;Sg] . n]vfk/LIf0f ug'{kg]{ lgsfosf] ;fdlos n]vfk/LIf0f ug{ ;Sg] . o;/L ul/g] n]vfk/LIf0fsf] ljlw, tl/sf, If]q / k/LIf0f ug]{ s'/fx? dxfn]vfk/LIfsn] tf]lslbP adf]lhd x'g] . Chandra Kanta Bhandari, FCA, CPFA

n]vfk/LIf0f k|sf/ – k|fo M # k|sf/n] ug{ ;lsG5 . Chandra Kanta Bhandari, FCA, CPFA

n]vfk/LIf0fsf] b[li6sf]0f lgoldttf, ldtJooLtf, sfo{bIftf, k|efjsfl/tf / cf}lrTo g]kfnsf] ;+ljwfg / n]vfk/LIf0f P]g -k|yd ;+zf]wg_ @)&# b'j}df oL b[li6sf]0f cg';f/ n]vfk/LIf0f ug'{kg]{ s'/f pNn]v 5 . Chandra Kanta Bhandari, FCA, CPFA

Principles Governing an Audit

n]vfk/LIf0fsf] ljlw k|0ffnLsf] d"Nof+sg n]vf clen]vsf] k/LIf0f kmfO{n / sfuhftsf] k/LIf0f :ynut cjnf]sg tyf lg/LIf0f / cGo pko'St ljlw Chandra Kanta Bhandari, FCA, CPFA

;/sf/L -clGtd_ n]vfk/LIf0fsf cfwf/x? g]kfnsf] ;+ljwfg, ;/sf/L gLlt, ah]6, sfo{qmd, lgb]{lzsf, n]vfk/LIf0f P]g,@)$*, ;fj{hlgs lgdf{0f lgb]{lzsf, cfly{s sfo{ljlw P]g, @)%% / P]= lgodfjnL, @)^$, lgdf{0f sfo{ ;DjGwL :jLs[t gd{z, lhNnf b/ /]6, ;fj{hlgs vl/b P]g, @)^# / P]= lgodfjnL, @)^$, Jfflif{s sfo{qmd, e|d0f vr{ lgodfjnL, @)^$ cfof]hgf ljj]rgf k|ltj]bg jf cjwf/0ff kq lghfdlt ;]jf P]g, @)$( / P]= lgodfjnL @)%), ;/sf/L n]vfk/LIf0f dfgb08 cfbL . g]kfn ;/sf/ / cy{ dGqfnosf] lg0f{o Pj+ kl/kqx? ljleGg ljifout P]gx?, ;+ul7t ;+:yfx? ;DjGwL P]gx?, cGt{/fli6«o bft[ ;+:yf;+u ePsf] ;Demf}tf, cGt{/fli6«o n]vfk/LIf0fsf dfgb08x?, Chandra Kanta Bhandari, FCA, CPFA

Chandra Kanta Bhandari, FCA, CPFA

Chandra Kanta Bhandari, FCA, CPFA

dxfn]vf k/LIfsn] cf}lrTosf] b[li6sf]0faf6 k/LIf0f ug]{ s'/fx¿ -s_ lgsf;f cg';f/ vr{ u/]sf] eP tfklg a]d'gfl;a t/Lsfn] jf rn crn /fli6«o wg a/afb x'g] u/L vr{ ePsf] dxfn]vf k/LIfssf] lrQn] b]v]df To:tf] vr{ / lgsf;fsf] ;DaGwdf, / -v_ rn crn /fli6«o wgsf] cg'bfg jf /fh:jsf] clex:tfÍg jf vfgL, h+un, hnzlQm cflbsf] ;'ljwf k|bfg ;DaGwdf k§f, nfO;]G;, clwsf/ / s'g} cGo k|sf/af6 /fh:j jf rn crn /fli6«o wg Tofu ug]{ u/L hf/L ul/Psf ;a} lgsf;fx¿sf] ;DaGwdf . a]¿h'sf ;fdfGo sndx¿ / cf}lrTosf] b[li6sf]0faf6 pNn]vgLo gb]v]sf cGo sndx¿ ;d]t cfkmgf] k|ltj]bgdf gkfg{ klg ;Sg]5 . Chandra Kanta Bhandari, FCA, CPFA

clGtd n]vfk/LIf0f k|lqmof != n]vfk/LIf0f of]hgf th'{df, @= n]vfk/LIf0f of]hgf sfof{Gjog, #= n]vfk/LIf0f k|ltj]bg, $= cg'udg . Chandra Kanta Bhandari, FCA, CPFA

n]vfk/LIf0f k|s[of lgsfosf] hfgsf/L KYC n]vfk/LIf0f of]hgf Audit Plan ;Dk/LIf0f cg'udg (Follow Up) n]vfk/LIf0f k|s[of k|ltj]bg (Reporting) sfof+Gjog (Audit Execution) laZn]if0f Joxf]/f tof/ ug]+ Chandra Kanta Bhandari, FCA, CPFA

n]vfk/LIf0fsf k|lqmofut s'/fx? z'?df n]vfk/LIf0f k|j]z a}7s . ulDe/ q'6L b]lvPdf lar lardf hfgsf/L u/fpg] . 5nkmn ug]{ . cGtdf alxu{dg a}7s . of] a}7ssf] dfO{Go'6 clgjfo{ . k|f/lDes n]vfk/LIf0f k|ltj]bg hf/L . #% lbgleq k|f/lDes n]vfk/LIf0f k|ltj]bg pk/ k|ltlqmof . ;Dk/lIf0fsf] nflu cg'/f]w ug{ ;Sg] . !% lbg leq ;Dk/lIf0fsf] hfgsf/L lbg'kg]{ . Chandra Kanta Bhandari, FCA, CPFA

a]?h' M kl/efiff ;}4flGts a]?h' / nutL a]?h' Criteria Condition cfly{s sfo{ljlw P]g,@)%%, bkmf @ -b_ æa]?h'Æ eGgfn] k|rlnt sfg"g adf]lhd k'¥ofpg' kg]{ /Lt gk'¥ofO{ sf/f]af/ u/]sf] jf /fVg' kg]{ n]vf g/fv]sf] tyf clgoldt jf a]dgfl;a tl/sfn] cfly{s sf/f]af/ u/]sf] egL n]vfk/LIf0f ubf{ cf}+NofOPsf] jf 7x¥ofOPsf] sf/f]af/ ;D´g' k5{ . a]?h' = n]vfk/LIf0fsf] cfwf/ / n]vfk/LIf0fjf6 b]lvPsf] Joxf]/f ljr km/s ePsf] cj:yf ;}4flGts a]?h' / nutL a]?h' Criteria Condition Chandra Kanta Bhandari, FCA, CPFA

a]?h'sf] lsl;d / o;sf] cj:yf -%%cf}+ k|ltj]bg @)&$_ Chandra Kanta Bhandari, FCA, CPFA

a]?h'sf] lsl;d / o;sf] cj:yf -%%cf}+ k|ltj]bg @)&$_ Chandra Kanta Bhandari, FCA, CPFA

a]?h' k|ltzt ;/sf/L lgsfo tkm{ Chandra Kanta Bhandari, FCA, CPFA

a]?h' a9b} hfg'sf d'Vo sf/0fx? sfof{Gjogdf Nofpg g;lsg] sfg'gsf] lgdf{0f, 7'nf b]lv ;fgf ;a} sfof{nonfO{ Pp6} sfg'gsf] Joj:yf, P]g, / lgodx? c:ki6 / bf]xf]/f] cy{ nfUg] vfnsf x'g', a]?h' u/fpg] / gu/fpg] sd{rf/L ljr leGgtf gx'g', j]?h' km5\{of}6sf] sfd n]vfsf] dfq xf] eGg] efjgf /fVg' / j]?h' km5\{of}6nfO{ sd k|fyldstf lbg', clwsf/ vf]Hg] t/ lhDd]jf/L jxg gug]{ k|j[lts]f xfjL x'g', k]ZsL lbPsf] /sd klg nult a]?h' sfod x'g], Dofb leq k]ZsL km5of}{6df pbfl;gtf, cfGtl/s hf+r -Internal check_ k|0ffnL lkmtnf] / k|efjlxg ePsf] / cfGtl/s n]vfkl/If0f k|efjsf/L ?kdf x'g g;s]sf] . Chandra Kanta Bhandari, FCA, CPFA

a]?h" ;+k/LIf0fsf cfwf/x? k|df0f k]z u/]/, sfg'g,gLlt lgodsf] JofVof u/]/, /sdfGt/, ;|f]tfGt/ / vr{ ;dy{g u/fP/, c;"n pk/ u/]sf] k|df0f k]z u/]/, ;f]wegf{ lng] lbg] sfo{ u/]/, Goflos lgsfosf] km};nf jf cfb]z, lg0f{o jf km};nf sfof{Gjog ePsf] k|df0f k]z u/]/, clwsf/ k|fKt clwsf/Laf6 ldgfxf u/]sf] k|df0f k]z u/]/ / ;fj{hlgs n]vf ;ldltsf] lg0f{o sfof{Gjog u/]sf] cfwf/df . Chandra Kanta Bhandari, FCA, CPFA

;fj{hlgs ljQ Joj:yfkgsf r'gf}tLx¿ Establishing balance between/ among Functions, Functionary and fund/ finance Enable institutional and staffs capacity specially at local level ;fj{hlgs ;|f]t–;fwgsf] pkof]u glthfd'vL t'Nofpg' / bIftfk"j{s kl/rfng ug'{, a9\bf] rfn' vr{sf] lgoGq0f ug'{, k'FhLut vr{df j[l4 ug'{, the persistent and increasingly significant under-performance of the capital budget. The pattern of actual expenditure is skewed heavily towards the end of the fiscal year. [Asar Syndrom] cfGtl/s ;fwgn] ah]6sf] 7"nf] c+z wfGg ;Sg] t'Nofpg' ah]6 cg'dfg sfo{qmddf cfwfl/t tyf oyfy{k/s agfpg', ;dod} sfo{qmd :jLs[t u/L jflif{s vl/b of]hgf tof/ ug{', ;dodf 7]Ssf aGbf]a:t ug'{, cfGtl/s n]vfk/LIf0f tyf lgoGq0f k|0ffnL ;'b[9Ls/0f ug'{, clGtd n]vfk/LIf0fnfO{ k|efjsf/L agfpg' Chandra Kanta Bhandari, FCA, CPFA

;fj{hlgs ljQ Joj:yfkgsf r'gf}tLx¿ a]?h'sf] dfqf 36fO{ a]?h' g} gx'g]u/L vr{ Joj:yfkg ug'{ ljlQo hjfkmb]lxtfdf ;'wf/ ug'{ . hgtfsf] clt glhssf] zf;sLo tx;Dd ;fj{hlgs ;]jfsf] k|jfx / ljt/0fnfO{ lglZrttf k|bfg ug{ ;fj{hlgs ljQLo Joj:yfkgnufot cGo zf;sLo ;'wf/sf] sfo{ cl3 a9fpg' ljQLo ;fIf/tfdf sdL k|fb]lzs / :yfgLo tx;Dd ljsf; Joj:yfkgsf] Ifdtf a9fpFb} ;a} txdf hjfkmb]xL, :jR5 / k|efjsf/L ljsf; k|zf;g sfod ug]{ sfo{ s'zn Pjd\ hjfkmb]xL ;fj{hlgs ljQ -rf}wf}+ of]hgfsf] /0fgLlt_ :yfgLo lgsfosf] cfGtl/s cfo tyf ljQLo ;|f]tsf] Joj:yfkg k|efjsf/L agfpg' Chandra Kanta Bhandari, FCA, CPFA

;fj{hlgs ljQ Joj:yfkgsf r'gf}tLx¿ the approach to setting overall budget ceilings; incomplete coverage of government operations; the high level of in-year re-budgeting (virement) which weakens the credibility of the budget preparation process Overall system (laws, Institutions) is generally well designed but unevenly implemented large fiscal activities remain outside the scope of the Government budget lack of/ or unrealistic procurement plans and non-observance of competitive tendering; focus of internal audit on transactions and external audit only on “irregularities” as opposed to systemic improvements; gaps in the monitoring systems Chandra Kanta Bhandari, FCA, CPFA

Fundamental Problem We have good foundations in terms of: legal provisions, Institutional arrangements Roles and responsibilities However, weak in implementation/ Application WHY SO????? How can it be Addressed???? Chandra Kanta Bhandari, FCA, CPFA

Due to: What happens when one does not discharge his/ her duties as expected? Nothing, Instead he/she gets rewards. Impunity Tolerant societal structure. Even honors/ encourages those getting undue benefits misusing public funds and powers and improving lifestyles. kmnfgf]n] k|ult u/]sf] 5 . Trend of making everyone happy No Whistle blowing mechanism Lack of will at Political Leadership, Policy and operational decisions taken not on righteous basis but based on immediate political benefit that will fetch it out. Lack of integrity at all sector (Politics, Public administration, business, Non-state actors) Biased Media and Civic Society Chandra Kanta Bhandari, FCA, CPFA

Theory of Change Be flexible in framing requirement (laws, policies, programme) but be cruel in implementation/ application Walk your talk (Do what you say – in policies, laws, regulations, election manifesto) Promote public integrity Encourage speak out culture against any wrong doings Make for appropriate whistle blowing mechanism and protect to the whistle blowers Make public life of those holding public positions more transparent through various disclosure policies Chandra Kanta Bhandari, FCA, CPFA

Thank you !!!!!! Chandra Kanta Bhandari, FCA, CPFA