News:

Auditor General of Bhutan, Dasho Kunzang Wangdi left for Oslo

27th June 2005: The Auditor General of Bhutan, Dasho Kunzang Wangdi left for Oslo, Norway to attend the INTOSAI Development Initiative (IDI) Focus Group Meeting from 27^th – 29^th June 2005.

Dasho Kunzang Wangdi has been invited based on his knowledge and experience as the Auditor General. Similar invitations have also been extended to 12 other heads and distinguished personalities from other Supreme Audit Institutions.

The IDI has a mandate for the capacity building activities for the INTOSAI (International Organisation of Supreme Audit Institutions) region. The Focus Group will discuss on the project plan for the IDI’s 5 year Strategic Plan commencing 2007.

5th Indo-Bhutan Audit Training on "Auditing in an IT Environment".

20th June 2005: The 5^th Indo-Bhutan IT Audit Training was inaugurated on 20 June 2005, conducted by two senior level resource persons, Mr. V.Ravindran, Hon'ble Accountant General of Kerala and Mr. N.K. Sah, Dy. Director, from the Office of the Comptroller and Auditor General (C&AG) of India. The Indo-Bhutan Audit Training is one of the annual Indo-Bhutan activities covered by the Memorandum of Understanding (MoU) signed between the Auditor General of Bhutan and the Comptroller & Auditor General of India on 21 Dec. 2001. 

Some of the major areas that would be covered during the training are IS Audit Process, IT Security Management, IT Infrastructure and Operational Practices, Disaster Recovery and Business Continuity, Applications Developments & Controls, Process Reengineering, and introduction to Computer Assisted Auditing Techniques (CAATs) and few Auditing softwares.

Dr. Ketan Shukla, Charge d' Affairs, Embassy of India, inaugurated the training as the chief guest. He emphasized on the importance of the audit institution and the auditors’ role in ensuring transparency and compliance of rules and procedures in public finance.

Addressing the auditors, Dasho Kunzang Wangdi, Hon'ble Auditor General of Bhutan, reminded that "as the economy and governance begin to experiment with new science (ICT), the perpetrators of crime will take advantage making detection difficult, if not impossible". Hence, the urgent need for application of ICT auditing tools to detect ICT related frauds. The Hon'ble Auditor General also informed that the Royal Audit Authority will conduct audits of use of ICT in ministries including the websites and evaluate the implementation of BIPS, audit E-Government by making use of CAATs developed by ISCITA.

(Click here to view the Chief Guest's Address)

(Click here to view the Auditor General's speech)

Auditor General of Bhutan Inaugurates First Training Workshop on compliance with the provisions of the Companies Act of the Kingdom of Bhutan 2000 on June 13^th, 2005 

16th June 2005: Addressing a galaxy of executives, company secretaries and officials of the corporate sector the Auditor General of Bhutan Dasho Kunzang Wangdi said that the society expects the companies to make the big difference in the national economy. He cautioned the companies from being too "dependent, less risk taking and habituated in receiving hands down…" while government must be a willing facilitator and freeing itself from the daily management of the companies, to make the whole country a Bhutan incorporate. 

He urged the "government and the society and the companies to have clear understanding on the cost of social obligations vis-a-vis the commercial objectives. One should not be confused and used for non delivery of the other." He reiterated the importance of need for an effective compliance system in Bhutanese companies as Bhutan will soon become member of WTO.

He said that RAA is wiling to undertake the concurrent auditing provided it is acceptable to a company. It will also revise the fees for chartered accountants. He also said that RAA will apply ICT auditing tools to detect frauds as accounting is gaining sophistication and complexity. He said that companies must aim to take the presence of the Bhutanese companies into the world- first into the region and then the world. The Auditor General commended the good works of the Registrar of companies. (The full text of the address is available here)
 

RAA commences In-house Training 2005

14 June 2005: Every year from mid June till the end of July, the Royal Audit Authority ceases auditing and concentrates on the professional development and other social activities. The major portion of this time is spent on In-house Training.

The In-house Training 2005 commences from 13^th June 2005. According to the Human Resource & International Relations Division, the major focus of this year's in-house training will be on Information Technology Audit. The following are the topics of this year's in-house training;

As seen from above, most of the resource persons for the In-house Training are from the Royal Audit Authority.

The 5^th Indo-Bhutan Audit Training will be on 'Auditing in an IT Environment'. The Indo-Bhutan Audit Trainings have their roots in the Memorandom of Understanding signed between the Office of the Comptroller & Auditor General of India and the Royal Audit Authority in year 2001.

Mr. V. Ravindran, Accountant General, Kerela and Mr. N.K Sah, Deputy Director from the Office of the Comptroller & Audit General of India, New Delhi will be the resource persons for this year's Indo-Bhutan Audit Training.
 

'Awareness Workshop on the Companies Act of the Kingdom of Bhutan, 2000 and it's Compliance' 

June 10, 2005: In response to an invitation from the Office of the Registrar, Ministry of Trade & Industry, two officers from RAA, Jigmi Rinzin, Dy. Chief Auditor and Karma Tenzin, Asst. Chief Auditor participated as resource speakers in the Workshop held at the Banquet Hall for two days on 7 and 8 June 2005.  

Their presentations briefly ran through Royal Audit Authority's scope and mandates and the sources where such scopes/mandates had emanated from. Main presentation was on the Audit requirements which touched upon specific sections of the Companies Act of the Kingdom of Bhutan 2000, all related to audit. Their brief presentations were ensued by a very active and passionate discussion among the entire floor, each sensitizing other’s views for further queries and opinions. As the time ran short and even extended beyond the allotted time, there would be so many more opinions and views which have left unshared among others.  

Read more for presentation (386 KB) (Format: PowerPoint Show)
and queries and opinion (64 KB) (Format: MS Word)
 

Press Release: Annual Audit Report 2004

May 25, 2005: It is the duty of every government to inform its public about the state of its public affairs. As required by the policy of good governance and General Auditing Rules and Regulations, the Royal Audit Authority is pleased to release its Annual Audit Report 2004 (AAR 2004). 

During the year the Royal Audit Authority had conducted 310 audits and issued 240 Inspection Reports, 8 Value For Money Audit Reports, 19 statutory audit reports, 113 project certification reports and 126 follow-up reports. 

The RAA is pleased to report that the total amount of irregularities in monetary terms in the Annual Audit Report 2004 had witnessed yet another decline as compared to all the previous AARs. The AAR 2004 reports total irregularities in monetary terms amounting to Nu.369.339 million which is a reduction by 28.097% from that of the AAR 2003, 42.099% from AAR 2002 and 54.370 % from AAR 2001 which had a reported figure of Nu.513.665 million, Nu.637.88 million and Nu.809.420 million respectively. The RAA is hopeful that in years ahead too instances of misuses would further see a descending trend as RAA consistently pursue its Zero Tolerance Approach. 

In the over all scenario government money lying in the private hands pending recovery and adjustment for a very long period of time continued to top the list of irregularities. An amount of Nu.164.632 million including Nu.66.553 million on account of over due loan has been lying outstanding. Procurement without tendering and other irregular contract management also featured prominently with Nu. 59.079 million and Nu.16.911 million respectively. Payments made but which are not admissible by rules in force are still found to be a norm in most of the agencies with amount aggregating to Nu.15.932 million. There was also a sum of Nu.9.572 million which could have been avoided spending through proper studies and adherence to higher instructions. 

The Ministry of Foreign Affairs had the highest amount of irregular/inadmissible payments aggregating to Nu.10.217 million. The Ministry of Home & Cultural Affairs had in total paid Nu.1.433 million for works not executed/materials received and had incurred Nu.2.309 million for avoidable/wasteful purchases. The Royal Bhutan Police had accepted under-sized uniforms amounting to Nu.10.484 million. The Royal Bhutan Army had released full work done value to M/s Pine Wood Builders without adjusting advance payment of Nu.1.100 million. The Ministry of Works & Human Settlement also had incurred avoidable expenditure of Nu.4.251 million. 

The Bhutan Power Corporation had embezzlement case of Nu.0.500 million. The Royal Court of Justice, Trashigang pronounced the suspect guilty and sentenced him to 7 years imprisonment. However, on appeal to the High Court there was a reversal of verdict. The matter after permission from CCM is now referred to the Office of Legal Affairs. 

As many as 134 cases of illegal/unauthorized constructions on Government land were noted. The duration of occupants ranged from 5 to 35 years. 

Among the government agencies the Ministry of Home and Cultural Affairs including the Dzongkhag Administrations had the highest amount of irregularities with Nu.70.805 million, followed by Ministry of Works & Human Settlement with Nu.36.504 million and Ministry of Foreign Affairs with Nu.29.226 million.  

The Royal Audit Authority for the first time is pleased to report the consolidated findings of the Performance (Value For Money) Audit including Central Stores of the government Ministries, government policy freezing the procurement of pool vehicles and personnel action of the government. As a result of this audit the RAA detected millions of government fund blocked due to excessive procurement by the Central Stores, payment made over and above the Maximum Retail Price (MRP), huge consumption of time, loss of useful life of medicines etc. The government policy freezing the procurement of pool vehicles was found eventually lifted as numbers of vehicles costing a total amount of Nu.243. 461 million were seen procured. A total of 156 numbers of third country vehicles (101 funded through RGoB) and 96 number of Indian make were found procured. The audit of personnel action was initiated with the objective to find out if there was fair and transparent system across the sector. The Royal Civil Service Commission had not given access to its records for fair assessment.  

The RAA is pleased to report that during the year audit recovery of over Nu.22.00 million had been made which in its own small ways would have helped in narrowing the budget deficit of the Royal Government. 

The RAA would like to acknowledge the cooperation extended to us and urged all to further improve the system of internal controls, monitoring and evaluation and promote healthy practices at every level of management. 

Interested individual 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:  http://www.bhutanaudit.gov.bt/contents/aar/aar2004/index.php with effect from 25th May 2005. The Dzongkha version will be made available by end of August 2005. 

Issued on Wednesday the 25^th May, 2005 of the reign of the Fourth Druk Gyelpo His Majesty Jigme Singye Wangchuck coinciding the 17^th Day of the 4^th  Month of Wood Bird Year.
 

RAA completes the Audit Awareness Programme for DYT and GYT Members of twenty Dzongkhags on 13th May 2005.

May 16, 2005: The Audit Awareness programme for 20 Dzongkhags started on 17^th March 2004 with Trongsa Dzongkhag is completed with Chukha as last the Dzongkhag Administration on the 13^th May 2005. The programme was attended by 100 participants including Dasho Dzongdag, Dasho Drangpon, DYT Chairman & GYT Chairmen, Gaydrungs and Sector Heads and Regional Heads under Chukha Dzongkhag.

The Awareness Programme was conducted to enhance accountability and effectiveness on geog based planning and administration of development as the responsibility for implementation of the geogs based development rests with the Gups who are also the Chairman of GYTs. It was also because the GYT Chathrim also clearly spelt out the responsibility to monitor, review and report on the functioning and performance of the Geog Administrations rests with the Royal Audit Authority.  

To complement the various capacity programmes  being carried out by the various agencies of the Royal Government the Royal Audit Authority considered it important to educate and create Awareness in the field of auditing among the members of DYT and GYT and officials. 

The Royal Audit Authority also seized the opportunity to explain its roles, responsibilities and plan to more than forty Schools and institutions.  

The Royal Audit Authority is very hopeful that through this programme it had been able to help local government render clean and transparent services to the public, while leading in reduction of corruption and successful implementation of the 9^th Plan. 

RAA team conducts awareness session at Chukha
Higher Secondary School 

The final programme at Chukha organized at DYT hall started with Zhugdrey Phuensum Tshop and ended with vote of thanks proposed by DYT Chairman who thanked the RAA for it's efforts to combat corruption in the kingdom for which the people of Chukha have a full support.
 

RAA covers all Dzongkhags on Audit Awareness Programme 

May 10, 2005: The Hon'ble Auditor General of Bhutan, Dasho Kunzang Wangdi and senior officials from the Royal Audit Authority left for Dzongkhag Administration, Samtse on 9^th May 2005 to conduct the Audit Awareness Programme. Dasho Dzongda, Dasho Drangpon, Dzongkhag Yargay Tshogchhung and Geog Yargay Tshogchhung's Chairman and Dy. Chairman, DYT members, Dzongkhag sector heads and regional heads will be participating in the programme. The programme is also scheduled for the students, trainees, lecturers and teachers of National Institute of Education and Samtse Middle Secondary School.

On 12^th May, similar programmes will be conducted at Chukha Dzongkhag. The team will also visit Tala Hydroelectric Power Authority and Gedu Middle Secondary School. The team will return to Thimphu on 13^th may 2005.

With this, the RAA completes the Audit Awareness Programme in all the Dzongkhags in the Kingdom.

RAA host the 14th INTOSAI Standing Committee Meeting on IT Audit

April 25, 2005: The Royal Audit Authority will be hosting the 14th International Organization of Supreme Audit Institutions (INTOSAI) Standing Committee Meeting on IT Audit from 27-29 April 2005. The IT Audit Committee is the arm of INTOSAI dedicated to support the development of knowledge and skills in the use and audit of information technology, and to encourage bilateral and regional co-operation between its members. More than fifty delegates from twenty countries including India, United Kingdom, China and Brazil will be attending the meeting. Auditing e-government, updating the guidelines on Auditing IT Service Management, Use of modern technology in decision-making in INTOSAI and Computerized Audit System are some of the topics to be presented and discussed during the meeting.

During their stay in Bhutan, the delegates will be visiting some of the important historical and cultural places of Bhutan.

The Hon'ble Minister His Excellency Lyonpo Khandu Wangchuk consented as the Chief guest in the opening ceremony.

RAA covers 16 Dzongkhags on Audit Awareness Programme 

April 12, 2005: The Hon'ble Auditor General of Bhutan, Dasho Kunzang Wangdi and the senior officials from the Royal Audit Authority will leave to Dzongkhag Administration, Punakha tomorrow 13^th April 2005 to conduct the Audit Awareness Programme. Dasho Dzongda, Dasho Drangpon, Dzongkhag Yargay Tshogchhung and Geog Yargay Tshogchhung's Chairman and Dy. Chairman, DYT members, Dzongkhag sector heads and regional heads will be participating the programme. With this the Royal Audit Authority will be completing 16 Dzongkhags out of 20 Dzongkhags.

A similar programme was conducted at the Royal Bhutan Institute of Technology (RBIT), Phuntsholing on 10^th April 2005 by the Hon'ble Auditor General and the senior officials from the Royal Audit Authority. The programme was attended by the Lecturers and the trainees of the Institute.

Auditor General of Bhutan to attend 18^th UN/INTOSAI Interregional seminar on Government Auditing.
 
April 12, 2005: The Hon'ble Auditor General of Bhutan, Dasho Kunzang Wangdi will leave for Vienna, Austria on 15^th April 2005 to attend the 18^th UN/INTOSAI Interregional Seminar on Government Auditing on the topic "Symposium on the Application of ICT in Audit of E-government: A strategy for Efficiency, Transparency and Accountability" from 18-22 April 2005.

As target group, the symposium addresses the heads of the Supreme Audit Institutions (SAI), which would facilitate in making significant contribution in improved audit of and accountability for public expenditure and public sector activities.

The agenda of the symposium includes: advantage of e-government in creating 'public good' and furthering socio-economic and human development and the related role of the SAIs, advantages and risks of e-government from the perspective of SAIs' audit of accountability for development aid and discussion on the feasibility of SAIs to examine sustainable development and other Millennium Development Goals through e-government. 

The symposium is jointly organized by the United Nations and the International Organization of Supreme Audit Institutions (INTOSAI).