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

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

3. 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

4. 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

5. 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

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

7. Chandra Kanta Bhandari, FCA, CPFA

8. 5 components of internal control Each components contains several principles which are the requirements of each component
Chandra Kanta Bhandari, FCA, CPFA

9. 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

10. Chandra Kanta Bhandari, FCA, CPFA

11. 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

12. ;+ljwfgdf Joj:yf ePsf] ljleGg txsf ;/sf/sf] clwsf/sf] ;"rL
;+3sf] clwsf/sf] ;"rL M cg';"rL–%, -wf/f %& sf] pkwf/f -!_ / wf/f !)( ;Fu ;DalGwt_ -ljleGg #% lsl;dsf clwsf/_
k|b]zsf] clwsf/sf] ;"rL M cg';"rL–^ lsl;dsf clwsf/_
;+3 / k|b]zsf] ;femf clwsf/sf] ;"rL M cg';"rL–& lsl;dsf clwsf/_
:yfgLo txsf] clwsf/sf] ;"rL M cg';"rL–* -ljleGg lsl;dsf clwsf/_
;+3, k|b]z / :yfgLo txsf] clwsf/sf] ;femf ;"rL M cg';"rL–( -ljleGg !% lsl;dsf clwsf/_
Unbundling/Detailing of List of Exclusive and Concurrent Powers of the Federation, the State (Province) and the Local Level Provisioned in the Schedule 5,6,7,8,9 of the Constitution of Nepal
Chandra Kanta Bhandari, FCA, CPFA

13. ;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

14. 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

15. 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

16. 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

17. sf/f]jf/sf] n]vf+sg / k|ltj]bg
Plss[t cfly{s ;+s]t tyf jlu{s/0f /
@)&$.)&.)! 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 b]lv nfu"
;+3df 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

18. :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

19. ;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

20. 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

21. 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

22. ;+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

23. 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

24. 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

25. 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

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

27. 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

28. 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

29. 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

30. 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

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

32. 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

33. 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

34. 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

35. cfGtl/s n]vfk/LIf0f (Internal Audit)
æcfGtl/s n]vfk/LIf0fÆ eGgfn] cfly{s sfo{ljlw 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

36. 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 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

37. ;/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

38. 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

39. n]vfk/LIf0f ;DjGwL tl/sf M
n]vfk/LIf0f sf] bkmf # M n]vfk/LIf0f ;DaGwL t/Lsf M
n]vfk/LIf0f ug]{ ;/sf/L sfof{no, g]kfn ;/sf/sf] k"0f{ jf clwsf+z :jfldTj ePsf] ;+ul7t ;+:yf jf cGo ;+:yfsf] ;a} jf tL cGtu{tsf s'g} OsfO{dfq 5gf}6 u/L cfly{s sf/f]af/ / ;f];Fu ;DalGwt cGo lqmofsnfkx?sf] Ps Ps u/L jf aLr aLrdf 58\s] u/L jf s]xL k|ltzt dfq k/LIf0f ug]{ u/L n]vfk/LIf0fsf] tl/sf, If]q / cjlw tf]sL clGtd n]vfk/LIf0f ug{, To;af6 k|fKt ePsf tYox? bzf{pg, To;df cfnf]rgf ug{ / cfly{s ljj/0f pk/ cfjZostfcg';f/ /fo;lxtsf] k|ltj]bg ug{ ;Sg] .
g]kfn ;/sf/åf/f cg'bfg k|fKt u/L ;+rfng ePsf sfo{qmd tyf cfof]hgfsf] l:ylt tyf n]vf;DaGwL sfuhft h'g;'s} avt x]g{,
Chandra Kanta Bhandari, FCA, CPFA

40. 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

41. 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

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

43. 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 b'j}df oL b[li6sf]0f cg';f/ n]vfk/LIf0f ug'{kg]{ s'/f pNn]v 5 .
Chandra Kanta Bhandari, FCA, CPFA

44. Principles Governing an Audit

45. 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

46. ;/sf/L -clGtd_ n]vfk/LIf0fsf cfwf/x?
g]kfnsf] ;+ljwfg,
;/sf/L gLlt, ah]6, sfo{qmd, lgb]{lzsf,
n]vfk/LIf0f
;fj{hlgs lgdf{0f lgb]{lzsf,
cfly{s sfo{ljlw / P]=
lgdf{0f sfo{ ;DjGwL :jLs[t gd{z,
lhNnf b/ /]6,
;fj{hlgs vl/b / P]= lgodfjnL, @)^$,
Jfflif{s sfo{qmd,
e|d0f vr{
cfof]hgf ljj]rgf k|ltj]bg jf cjwf/0ff kq
lghfdlt ;]jf / 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

47. Chandra Kanta Bhandari, FCA, CPFA

48. Chandra Kanta Bhandari, FCA, CPFA

49. 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

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

51. 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

52. 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

53. a]?h' M kl/efiff ;}4flGts a]?h' / nutL a]?h' Criteria Condition
cfly{s sfo{ljlw -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

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

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

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

57. 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

58. 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

59. ;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

60. ;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

61. ;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

62. 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

63. 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

64. 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

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