Sayed was speaking at a program organized to launch ´Operational Risk Assessment (ORA) of Public Fund Management (PFM) Reform in Nepal: A Review of Challenges and Opportunities´ on Monday. [break]
Citing a fresh report of Office of Auditor General (OAG), Sayed said internal audit and control systems remain weak due to several factors, including the inability to conduct audit on time and poor quality of internal audit. She also questioned the fairness of auditing where staffs of Financial Comptroller General´s Office are functioning as both accountants and auditors.
Expressing dissatisfaction over the weak management of development contract, she also said poor financial monitoring and reporting further affects the government´s ability to get reimbursement from its development partners.
The Financial Procedure Regulation requires the government to seek reimbursement within 45 days after the expenses have occurred.
Saying that delay in announcement of budget in the past affected budget planning and implementation, she, however, expressed hope that timely approval of budgetary programs this year will improve the situation. She also stated that the goal of reducing poverty to single digit and attaining the status of developing country by 2022 is possible only through effective management of public fund.
Sayed expressed concern over weak financial accountability at local level and stressed the need to set up institutional arrangement to deal with the problem. She identified politicization and distortions as major problems in management of fund for local level.
On the occasion, Philipp Krause, lead author at the Overseas Development Institute (ODI) - an independent think tank based in the United Kingdom -- presented the report, highlighting the major problems and challenges in management of public fund in Nepal.
Speaking at the program, Auditor General Bhanu Prasad Acharya said deeper reforms will require strong political and bureaucratic will. He mentioned that the protracted political transition has increased fiduciary risks.
Finance Secretary Shanta Raj Subedi described the report as a landmark analysis that will help in better understanding risks associated with public fund management in Nepal.
Related story
Portfolio Management
