Review Meeting on Audit Quality Assurance Program- ASOSAI-IDI

November 24, 2008: Four audit officer including ASOSAI training specialist Mr. Tashi left for Jakarta, Indonesia to attend the review meeting on the Audit Quality Assurance Program of ASOSAI-IDI from 25^th November to 3^rd December 2008.

The workshop on Quality Assurance was initiated by the ASOSAI and the IDI as a result of the Capacity Building needs assessment that was conducted earlier this year in the ASOSAI regions where most of the SAIs had expressed the need for strengthening the quality assurance (QA) systems.

The above meeting is the continuation of the workshop held in Mongolia on August 2008.
 

In-House Training in Progress

October 2, 2008:  To uphold the Continuing Professional Development Policy (CPDP) of the Royal Audit Authority (RAA) that was endorsed during the 11^th Annual Audit Conference, July 2008, the RAA is regularly conducting In-house trainings on the topics specified under every position titles in the CPDP. Beginning August 2008, seven different training courses were conducted for auditors under Supervisory level I, II and III. The internal Auditors from the Ministry of Health, Ministry of Education, Ministry of Economic Affairs, Ministry of Finance, Ministry of Labour and Human Resources, Ministry of Information & Communications and Ministry of Agriculture had also participated in various training program.

The main objective of In-house training program among others is to enhance competency of auditors to audit and report on the economy, efficiency and effectiveness in the use of public resources.

The trainings for the Assistant Audit Officers have been commenced from 1^st October 2008. The courses are on Interpretation of Accounts; Interviewing Skills; Revenue Audit for Business and Corporations; and Introduction to the Financial Shenanigans.

The resource persons for the courses are being pooled from in-house as well as from external agencies.

The trainings funded by the UNDP- AusAID are being conducted in the Conference Hall of the Royal Audit Authority.
 

RAA signed Multi-Year Agreement

The Netherlands Fellowship Programmes

August 8, 2008: The Auditor General signed a three year bilateral project on ‘Multi-Year Agreement’ under the Netherlands Fellowship Program (NFP) today, 8^th August 2008 at the RAA Conference Hall. The signing event was witnessed by the Hon’ble Honorary Consul, Ms. Anne-Marie, the Consulate of the Netherlands, Thimphu and a representative from the Sustainable Development Secretariat (SDS).  

The bilateral project worth Nu.30 million is focused on the Capacity development activities of the RAA. More than fifty auditors will be trained under various long and short term training courses on Accounting, Finance, Quality management and others.

Introducing Continuing Professional Development Policy (CPDP)

July 28, 2008: The Continuing Professional Development Policy (CPDP) of the Royal Audit Authority was endorsed during the 11th Annual Audit Conference convened from 23-25 July 2008.

The policy is aimed at facilitating the auditors in advancement of their careers and will at the same time induce professionalism in the Human Resource pool of the RAA. The policy focuses on the In-house training activities which will be conducted through out the year. It is mandatory for all the auditors to accumulate 60 Continuing Professional Development Hours (CPDH) annually and in fours years term one has to accumulate 240 hours. This will determine ones eligibility to shortlist for promotion to the next higher level position. The mandatory courses under each position titles are identified in the policy.

The policy document comprised of five chapters that includes General Policy, Responsibilities, Position Titles, CPD–External Training and Undertaking and Obligations. The mandatory course under each position titles, participant’s evaluation form, instructor/facilitators and course evaluation forms, CPDH from other activities, and form to record individual CPDH are some of the important components of the policy document.

The policy will be implemented from August 2008.
 

11th Annual Audit Conference

22 July 2008: The 11^th Annual Audit Conference on the theme “RAA’s Role in Promoting Good Governance” will be convened from 23^rd to 25^th July 2008 at the auditorium of the Royal Institute of Management, Semtokha. The three days conference shall cover numerous topics including “A report on the Audit of Mining Operations in Bhutan”, “Audit Criteria”, “Working Papers”, “Audit Planning, Reporting and Field Standards” “Outline of the 12 Audit Manuals”.

The RAA’s Documentary film will be released and premiered on the first day during the opening ceremony. The Conference will also have a session with the GNH Commission on the second day where Result based management, Block management and the 10^th Five-Year-Plan will be discussed. The third day of the conference will have an open forum where all participants can share and discuss field problems, new and improved audit methodologies and other related topics. The theme for the 12^th Annual Audit Conference will be adopted on the last day.

More than 150 participants will be participating including auditors from the four Regional Offices. During the three days the RAA office will remain closed.

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 23^rd 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.
 

Interactive Data Extraction and Analysis (IDEA)

June 23, 2008: A week long In-House training program on Interactive Data Extraction and Analysis (IDEA) Version 7 commenced from today 23^rd June 2008 at BCCI hall. The course focuses on IDEA functionalities, data import and analysis, and various related case studies. This software is widely used globally with the auditing fraternity. This software along with its associated equipment is procured through the generous financial assistance of the Asian Development Bank (ADB).

Thirty participants including team leaders and team members from three Regional Offices of the Royal Audit Authority (RAA) are attending the course. The facilitators of the course are from the IT Audit Section of the RAA who were trained by the Office of the Comptroller and Auditor General of India.
 

8th Indo-Bhutan Audit Training

June 9, 2008: A week long 8^th Indo-Bhutan audit training on “Audit of Hydro-Power Projects” begins today. This training is part of the Memorandum of Understanding (MoU) signed between the Royal Audit Authority and the comptroller and Auditor General (C&AG) of India in 2001 and further extension of the same in 2007 for another 6 years. Mr. Jagban Singh, Accountant General of Haryana, and Mr. A.K. Aich, Sr. Deputy Accountant General, Uttar Pradesh are the Resource Persons.

Delegation from Denmark

February 15, 2008: A ten member delegation including the Auditor General of Denmark, led by the Chairman of the Public Accounts Committee, Mr. Peder Larsen visited the Royal Audit Authority yesterday, 14^th February 2008.

The delegates were briefed on the RAA’s mandate, jurisdiction, reporting and accountability procedures including Audit Clearance Certificate by the Auditor General, Dasho Ugen Chewang. The delegates appreciated the system of Audit Clearance Certificate and our relationship with the Anti-Corruption Commission, and the transparency and outcome of the audit reports.