News Archives

24^th June 2004

 Press Release

The Royal Audit Authority will be organizing the 4^th Indo-Bhutan Audit Training on “Financial Audit” commencing from 28^th June 2004.

The training will be delivered by high-level resource persons comprising of Mr. R.B Sinha, Principal Director (Report State) from the Office of the Comptroller & Auditor General of India and Mr. R.K Agarwal, Sr. Deputy Accountant General of Orissa, India.

The Opening Ceremony will held at 3.30 pm on 28^th June 2004 at the Conference Hall of the Hotel and Tourism Management Training Institute (former Youth Centre Hall) at Motithang. His Excellency K.S Jasrotia, the Ambassador of India to Bhutan will be the Chief Guest for the Opening Ceremony. The Opening Ceremony will also be attended by other high level officials from Bhutan and India .

About 35 participants from the Royal Audit Authority and internal auditors of the financial institutions are expected to attend this week-long training.

17th May, 2004

Press Release

It is the duty of every responsible government to inform its public about the state of its public affairs. As required by the good governance policy and General Auditing Rules and Regulations (GARR), the Royal Audit Authority is pleased to release its Annual Audit Report 2003 (AAR 2003). 

The Royal Audit Authority had conducted a total of 294 audits and issued 275 reports. The AAR 2003 covers significant observations from 184 Inspection Reports.

The public fund lying in the private hands pending recovery and adjustment for a very long period of time continues to top the list of irregularities. Out of a total reported figure of Nu.513.677 million in AAR 2003 Nu.216.873 million falls under this category, which is approximately 42.22% of the total figure. The outstanding of revenue/debtors, accounts for 20.00 % and is second most of irregularities with a sum of Nu.102.761 million. 

It is painful to report again that despite the strong concerns raised in previous AAR ’s yet the instances of excess/double/over payment is still found to be a norm in most of the audited agencies accounting to Nu.19.306 million. 

The RAA is witnessing a descending trend year after year indicating most irregularities are now being checked and controlled at the point of occurrences. The RAA is optimistic that instances of misuses would further decline as we consistently pursue our Zero Tolerance Approach.

Tendering had substantially improved as compared to previous years and so are the cases of avoidable/wasteful expenditure and misappropriation/misuse of public money.

The recovery of funds in Audit Recoveries Account of Nu.17 million in the year 2003 is Nu.10 million less than in the year 2002. We feel that lesser collection as an indicator of the positive impact of auditing of Zero Tolerance Approach.

The nature and type of irregularities is more or less the same as those reported earlier. A few new additions are the manipulation in the bill of quantities, irregular waiver of penalty on evasion of income by the Ministry of Finance, Irregular writing – off of loans by Bank of Bhutan, Irregular sanctioning of personal loan for repayment of arrears on Non-performing Assets by Bank of Bhutan and unjustified waiver of late fee.

In order to further enhance the effectiveness of auditing the auditors, during the Annual Audit Conference 2004 would discuss extensively on the theme “Barriers to Effective Auditing: Finding Solutions”. We expect all barriers to be unearthed and come out with appropriate but workable solutions.

As we acknowledge the cooperation extended to us, we urge all to further improve the system of internal controls, monitoring, evaluation and promote healthy practices at every level of management.

Interested individuals can obtain copies of this report from the Policy, Planning and Annual Audit Report Division of the RAA. It will also be available on the Royal Audit Authority’s website: www.bhutanaudit.gov.bt/contents/aar/aar2003/index.php with effect from 17^th May 2004 .

Issued on Monday the 17^th May 2004 of the reign of the Fourth Druk Gyelpo His Majesty Jigme Singye Wangchuck coinciding the 28^th Day of the 3^rd Month of Wood Male Monkey Year. 

(Kunzang Wangdi)
Auditor General of Bhutan  

24th June, 2004

“Environmental Auditing Workshop” concludes

The six day “Environmental Auditing Workshop” concluded on 24^th June, 2004. Chandra Bdr. Gurung, Sr. Auditor, Choida Jamtsho, Assistant Auditor General and Chekey Gyeltshen, Chief Auditor collectively facilitated the workshop. During the workshop the participants were familiarized in understanding the global, regional and national state of environmental issues, understanding the ecosystem, Government responses to environmental audit, Environmental Audit and its challenges; understanding issues related to waste, water, air and biodiversity and the audits of waste, water, air and biodiversity. Some case studies and exercises were given to the participants to analyze and share their views.

The environment is described as globally important and requires global regulations. The workshop also focused on the contents of International and Regional Declarations, Conventions, Agreements and Legislations.

On the final day, the participants prepared various action plans for the audit of major environmental issues prevalent in our country. The action plan included the identification of major issues, setting audit scope and objectives, line of enquires, sources and technique of gathering evidences. The participants divided into groups presented action plans on Waste Management, Water pollution, Sewerage disposal, urbanization and Biodiversity.

The Hon’ble Auditor General in his concluding remarks reminded the participants the importance of environmental audits in our society. He also said, “As auditors, environmental aspects must be addressed during any type of audit, although the Performance auditors may take up detail environmental audit in areas where there are major environmental issues.”