1. Financial Management of Subnational Governments in Nepal

2. Overall Financial Management in Nepal
Constitution of Nepal
Federal Consolidated Fund
Province Consolidated Fund
Local Consolidated Fund
Financial Administration Section
Central Level Accounting
Ministrires and Department
Ministries and Departments
Local Government
Operating Agencies, Field Offices, Projects
Operational Accounting

3. Reporting of Federal and SNG’s Accounts
Federal Reporting
Reporting from executing offices to Supervisor Office & DTCO
DTCO Reports to FCGO & respective departments
MDA’s prepare agency-wise consolidated financial statement & report to FCGO
FCGO consolidates the reports from DTCO and central agencies
FCGO submits the final report to OAG.
ICT based Systems are in place
SNG’s Reporting
Reporting from Local governments to DTCO and Province FCGO
DTCO Reports to PFCGO
PFCGO prepare consolidated financial statement & MOEAP and FCGO
FCGO consolidates and Prepares General Government Reporting
FCGO submits/Publish the final report to OAG.
ICT Based system are being developed

4. Reporting of Operational level of all 3 level
Monthly Reporting
Statement of Expenditure (OAG 13, 213)
Details of Advance Amount (OAG 14)
Bank Reconciliation Statement (OAG 15)
Monthly Statement of Revenue (OAG 9)
Monthly Statement of Retention (OAG 19)
Statements of other funds
Annual Reporting
Financial Statements of Expenditure (OAG 17, 208)
Financial Statements of Revenue (OAG 193)
Financial Statement of Retention (OAG 194)
Annual report of assets (OAG 57)
Summary annual progress report
Annual reports of other funds

5. Fund Flow inter-linkage in Federal System
MOF/
FCGO
Central Bank
Province
Province Treasury Comptroller
District Treasury Comptroller office
Federal Govt. Trans. Bank
Province Govt. Trans. Bank
Provincial Unit
Federal Unit
Local Level
Local Govt. Office
Office under Province
District Offices under Federal Govt.

6. Federal Financial Management
Budget Approval
Authorization
Program Execution
Journal Voucher & Ledgers
Payee information entry
Payment Order Preparation
DTCO
MoF
FCGO
Cheque issue
Customer/Payee
LMBIS
CGAS/FMIS
TSA
Bank
E-Payment
BMIS
RMIS
RAS
IRD
OAG Forms
SPENDING UNITS
MDA’s
Parliament
/PAC
OAGN
Internal Audit
Final Audit
Disclosure of Financial Statements
Compliance with Financial Acts, norms and standards
Contract

7. Treasury Operations of Province and Local Government
Consolidated Fund
Treasury Management System
Revenue A/C
Expenditure A/C
Other A/C’s
Capital A/C
Recurrent A/C
Other Special Funds
Regular Expenses
Employee welfare fund, Disaster recovery fund,
Maintenance fund etc.

8. Discussions