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Released Annual Audit Report 2007
23
June 2008:
In accordance with the Constitution and the Audit Act of Bhutan 2006, the Royal
Audit Authority (RAA) released its Annual Audit Report (AAR)
2007 on 23rd June 2008. The AAR is a summary of
unresolved significant issues of the audit reports issued
during a particular year. During the year 2007, the RAA had
issued 500 audit reports comprising of 375 normal audit
reports, 97 certification reports, 5 performance audit
reports, 19 statutory audit reports and 4 special audit
reports.
The AAR 2007 reported significant unresolved irregularities
of Nu.199.080 million.
The irregularities in the budgetary agencies consisting of
Ministries & Departments, Dzongkhags, Gewogs and Autonomous
Bodies
aggregated to Nu.144.900 million followed
by Nu.54.180 million pertaining to the
Corporations,
Financial Institutions and Non-Government
Organisations (NGOs).
The figure in the budgetary agencies as compared to the year
2006 had increased by Nu.38.968 million while the figure for
the Corporations, Financial Institutions and NGOs
decreased by Nu. 26.663 million representing an increase of
36.78% and decline of 32.98% respectively.
The increase
in the irregularities in the budgetary agencies could be
mainly attributed to the risk based
focussed
auditing approach adopted in the year 2007.
The nature of irregularities reported included cases and
indicators of fraud, corruption and embezzlement involving
Nu.43.555 million, mismanagement of funds, properties and
taxes involving Nu.23.173 million, violation of budgetary,
accounting and procurement norms involving Nu.14.738 million
and other shortfalls, lapses and deficiencies involving Nu.
117.614 million. Under shortfalls, lapses and deficiencies,
a sum of Nu.62.906 million alone was reported under the
irregularities in advances and loans.
The AAR 2007 besides these irregularities also highlighted
the performance of the RAA during the year. The RAA also
included a chapter on the impacts of audits over the years
and another chapter containing classified recommendations
based on the nature of irregularities observed during the
year. The gist of the 4 performance audit reports out of 5
reports issued during the year is also included in the AAR under a
separate chapter.
The RAA extends its gratitude to all the officers in the
Ministries, Departments and Agencies for providing timely
response to the draft AAR 2007 and for extending the
required support and cooperation to the auditors while in
the field. With these unwavering supports, the Royal Audit
Authority will continue to strive for excellence as an
instrument of oversight of the Royal Government in
safeguarding the integrity and enhancing good governance and
in realisation of the national aspiration of the Gross
National Happiness. We pledge our assurances to continue to
serve His Majesty The Druk Gyalpo, Country and People to the
best of our abilities and without fear, favour or prejudice.
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