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

2. 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

3. 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.

4. 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.

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

6. 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

7. 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

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

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

10. 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.

11. 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

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

13. 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

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

15. 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

16. 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.

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

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

19. 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

20. 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,

21. 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.

22. 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 .

23. 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.

24. 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.

25. 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)

26. 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.

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28. THANK YOU