Local Governments Face Weak Financial Governance, Audit Report Reveals
Summary
The Office of the Auditor General's annual report reveals weak financial governance in Nepal's local governments, highlighting budget mismanagement, unreconciled accounts, and lack of internal audits.
Key Points
- Many local governments in Nepal have weak financial governance and fail to comply with laws and regulations.
- 219 local levels kept over 7 billion rupees in reserve budgets without specified plans, violating the Local Government Operation Act.
- 90 local levels have discrepancies of over 54 crore rupees between bank balances and ledger accounts indicating possible financial irregularities.
- 268 local governments did not conduct required internal audits, and many have not implemented proper asset management systems.
- Local levels accrued arrears exceeding 19 billion rupees in the fiscal year 2081-82, with total arrears surpassing 2 kharba 20 arba rupees.
