RAA Bumthang

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RAA Bumthang

Reporting on Economy, Efficiency and Effectiveness in the use of Public Resources.

WELCOME

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Auditor General of Bhutan Dasho Tashi is the 3rd Auditor General of the Royal Audit Authority (RAA) appointed by His Majesty the King on 14 October 2020. Deputy Auditor General Directorate of Services Deputy Auditor General Department of Sectoral Audit Deputy Auditor General Department of Performance & Compliance Audit

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Sigey Dorji

Bal Bdr . Darjee

Sonam Tenzin

Karma Dhendup

RAA Family BUMTHANG

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Sangay Tashi

Biren Gurung

Sangay Thinley

Dorji Nima

Kinley

Sanga Rinzin ,

Tenzin Wangchuk

Tashi Thinley

Sonam Dema

CHIMÉ DORJI

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Yeshi Jamtsho

Bumten Dema

Chencho Norbu

DUPHO WANGDI

Sonam

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Chimi Dema

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Thinley Choizang

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Dupchu Norbu

Chojey Wangmo

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Bogtu

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Tandin Tshering

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Sonam Lhamo

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Thinley Dema

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Auditor General of Bhutan Dasho Tashi is the 3rd Auditor General of the Royal Audit Authority (RAA) appointed by His Majesty the King on 14 October 2020. Deputy Auditor General Directorate of Services Deputy Auditor General Department of Sectoral Audit Deputy Auditor General Department of Performance & Compliance Audit

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Auditor General of Bhutan Dasho Tashi is the 3rd Auditor General of the Royal Audit Authority (RAA) appointed by His Majesty the King on 14 October 2020. Deputy Auditor General Directorate of Services Deputy Auditor General Department of Sectoral Audit Deputy Auditor General Department of Performance & Compliance Audit

abstract

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Auditor General of Bhutan Dasho Tashi is the 3rd Auditor General of the Royal Audit Authority (RAA) appointed by His Majesty the King on 14 October 2020. Deputy Auditor General Directorate of Services Deputy Auditor General Department of Sectoral Audit Deputy Auditor General Department of Performance & Compliance Audit

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FOLLOW-UP SECTION Sigey Dorji Deputy Chief Auditor Dupchu Norbu Sr. Auditor Chojey Wangmo Assistant Audit Officer

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Administrati n & Finance Sonam Tenzin Sr. Auditor Tshering Phuntsho Sr. ICT TA Sonam Dema Adm. Asstt. Chorten Zangpo Driver Sonam Lhamo Messenger Thinley Dema Sweeper Karma Dhendup Accountant Bal Bdr. Darjee Security Guard

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Project Implementation Unit (PIU) Chimé Dorji ect Director Bogtu Project Manager Tandin Tshering Project Member

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AUDIT TEAM I

DoR Lingmethang

CURRENT ASSIGNMENT

Kurichu Hydropower Plant, Gyelpozhing , Monggar

NEXT ASSIGNMENT

ARDC (22/03/21) RSTA Mongar (08/04/21) RRCO Mongar (28/04/21) RTIO Mongar (17/05/21) DFO Zhemgang (31/05/21)

UPCOMING ASSIGNMENTS

Dzongkhag Administration, Bumthang Four Gewogs: Chhoekhor , Chhumig , Tang and Ura AUDITS COMPLETED

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AUDIT TEAM II

Dzongkhag Administration, Lhuentse Eight Gewogs under Lhuentse CURRENT ASSIGNMENTS

Regional Revenue & Customs Office (RRCO), Bumthang (05/05/2021) NEXT ASSIGNMENT

Tangsibji Hydro Energy Limited ( THyE ), Trongsa (24/05/2021) NRDCL, Mongar (05/05/2021) DFO, Mongar (24/05/2021) UPCOMING ASSIGNMENTS

CARLEP, Wengkhar AUDITS COMPLETED

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AUDIT TEAM III

Dzongkhag Administration, Trongsa (19/10/2020) Gewogs: Draagteng , Korphoog , Langthil , Tangsibji and Nubi CURRENT ASSIGNMENT

Regional Office, DoR , Tingtibi , Zhemgang ( 22 /03/2021) NEXT ASSIGNMENT

Native Poultry and Heifer Breeding Centre, Lhuntse (03/4/2021) CDCL, Lingmethang , Monggar (17/04/2021) NRDCL, Bumthang ( 14 /06/2021) UPCOMING ASSIGNMENTS

National Research Centre for Animal Nutrition, Bumthang Wangchuck Centennial National Park (WCNP), Bumthang AUDITS COMPLETED

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AUDIT TEAM IV

Dzongkhag Administration, Mongar Drungkhag Administrtion , Weringla 1 7 Gewogs under Mongar CURRENT ASSIGNMENTS

Royal Court of Justice, Mongar ( 31 /05/2021) NEXT ASSIGNMENT

Royal Court of Justice, Weringla (14/06/2021) UPCOMING ASSIGNMENTS

UWICER, Lamegonpa , Bumthang Jigme Singye Wangchuck Stewardship Fund Madanjeet Singh Center for South Asia Forestry Studies AUDITS COMPLETED

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AUDIT TEAM V

Dzongkhag Administration, Zhemgang Drungkhag Administration, Panbang E ight Gewogs under Zhe mgang CURRENT ASSIGNMENT

DoR , Trongsa (08/03/2021) NEXT ASSIGNMENT

JSWNP, Trongsa (14/04/2021) Phrumsengla National Park, Bumthang (10/05/21) Regional Pig & Poultry Breeding Centre, Lingmethang , Monggar (07/06/21) UPCOMING ASSIGNMENTS

National Highland Research & Development Center, Jakar AUDITS COMPLETED

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SUPPORT STAFF

abstract

Chorten Zangpo Administration

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RAA’s MANDATES

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Constitution Article 25.1 “There shall be a Royal Audit Authority to audit and report on the Economy, Efficiency and Effectiveness in the use of Public Resources.”

Audit Act of Bhutan, 2018 “The Authority shall promote accountability, transparency and integrity in public operations through its reports and recommendations.” “The Authority shall audit to report on the economy, efficiency and effectiveness in the use of public resources.” “The Authority shall carry out performance, financial, compliance, special audits and any other form of audits that the Auditor General may consider appropriate.”

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RAA’s VISION MISSION

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VISION “A credible Supreme Audit Institution that promotes value for money and good governance in public operations and contributes towards achieving the societal aspirations of Gross National Happiness. ”

MISSION “ RAA is an independent constitutional body which contributes to accountability, transparency and effective service delivery. In the service of Tsa - Wa -Sum (the King, Country and People), we audit without fear, favour or prejudice and provide timely, reliable and quality audit services to assist effective decision making in the public sector. ”

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HISTORICAL EVOLUTION OF THE RAA

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03 -Royal Decree of 30th July 1970 (Four Royal Auditors) -Royal Audit Office

02 -Manual for Fin. Accounting & Service Rules 1963 – -Accounts & Audit Committee under Development Wing

16th NA proposed a separate audit system coinciding with the launch of first FYP 01

04 -Financial Manual 1974 -Department of Audit under Ministry of Finance

-Autonomous Body -Royal Audit Authority 05

General Auditing Rules & Regulations 06

07 Royal Audit Authority- A Constitutional Body

08 Audit Act of Bhutan, 2006

1st Auditor General appointed 09

10 2nd Auditor General appointed

1961

1963

1970

1974

1985

1989

2005

2006

2010

2015

2016

11 -Embarking on implementation of International Standard of Supreme Audit Institutions (ISSAIs) -Quality, Credibility & Professionalism

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WHO AUDITS THE AUDIT?

External audit by Chartered Accountants

Internal Auditing

PEER REVIEW RAA Other SAIs/INTOSAI/IDI/ASOSAI Section 86: The Authority may undertake a peer review by a member of peer organizations or other professional bodies from time to time to ensure consistency and high standard of auditing.

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TYPES OF AUDITS

Financial Audit Focuses on determining whether an entity’s financial information is presented in accordance with the applicable financial reporting and regulatory framework.

Performance Audit Checks whether interventions, programs & institutions are performing in accordance with the principles of economy, efficiency and effectiveness and whether there is room for improvement.

Compliance Audit Focuses on whether a particular subject matter is in compliance with authorities identified as criteria.

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AUDIT MEMO DECISION COMMITTEE (AMDC)

Audit Exit Meeting

A complicated issue - intricate audit memo wherefrom a conclusion cannot be easily drawn based on evaluations and analyses of available audit evidences and auditee’s justifications furnished during the exit meeting.

Entrusts & Empowers

The objective decision of the AMDC shall decide whether memo is dropped or pursued

A M D C

Gathered pool of experiences, knowledges and expertise of experienced and qualified auditors

A complicated issue - intricate audit memo wherefrom a conclusion cannot be easily drawn based on evaluations and analyses of available audit evidences and auditee’s justifications furnished during the exit meeting.

Individual based decision is ideal for straightforward issues to facilitate prompt (on the spot) decisions in exit meeting. However, for complicated issues, a group or committee (AMDC) has potential of collecting more and full information compared to an individual while making decisions. Further, an individual while making any decision uses his own intuition and views while a group provides various views and many approaches which facilitates better decision making.

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CHALLENGES FACED BY RAA, BUMTHANG

System of “Quick Fix” rather than “Permanent Fix” Generally, Audit Findings or Paras are settled upon recoveries of the amount. Auditee are not compelled to address the root problems. Primary responsibility for implementing recommendations and avoiding lapses lies with senior managers of the audited agencies. While audit provide “Quick Fix”, “Permanent Fix” is expected from auditees but not enforced to auditees .

Bumthang: Numerous agencies Vs. 17 field auditors (5 teams) Major agencies like Dzongkhag and DoR alone take 50% of allotted Man-days

Repetitive occurrences of lapses e.g. excess payments to contractor

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ACCOUNTABILITY

Direct Accountability The ‘Direct Accountability’ is fixed on those individual(s), members of committees, members of the Boards, etc. who are directly involved in executing activities, making decisions or who are direct beneficiaries from such decisions, actions or inactions, etc.

Supervisory Accountability ‘Supervisory Accountability’ rest on the supervising officer(s) , members of committees, members of the Boards, etc. depending on their involvement in decision making and executions.

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PROTOCOL BETWEEN RAA AND ACC

The Chairperson, ACC and the AG, RAA signed the ‘Protocol of mutual assistance and information sharing between Anti-Corruption Commission and Royal Audit Authority in preventing and combating corruption and promoting good governance’ on 12/06/2015.

The purpose of this Protocol is to set out a framework of cooperation, assistance and exchange of information between the ACC and the RAA

The area of cooperation established in this Protocol are when, what and how referrals to the ACC by the RAA are to be made, when, what and how referrals to the RAA by the ACC are to be made, what sorts of information are to be shared, in what circumstances joint investigations are to be conducted,

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FOLLOW-UP PROCESS

Audit Office

Auditee Agencies

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Issue Audit Reports

3 Months

Acün Taken on • findings ATR

Submit Action Taken Reports

Issue Review Reports

Action Taken on • findings ATR

Submit Action Taken Reports

Action Taken on • findings ATR

Acün Taken on • findings ATR

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AUDIT CLEARANCE

Issuance of Audit Clearance certificate on Undertaking: The Audit Clearance Certificate may be issued on Undertaking based on the written assurance from the head of the audited entity to resolve the audit observations and recommendations. However, such observations and recommendations involves; only shortfalls and lapses for supervisory accountability. accountability and responsibility fixed for the failure on the part of tax payers to clear the dues despite several reminders and other recourse; accountability fixed for the on-going deposits works and imprest advances (where the settlement of accounts is not due); and cases where compliances are to be verified in the next audit.

The Authority shall issue Audit Clearance Certificate for the following purpose: Promotion; Long/short term training; Retirement benefit on separation/repatriation; Extension of contract service/ service regularization; Secondment; Election; and Other purposes as may be necessary.

For the purpose of renewal of Construction Development Board registration, the Authority may review the justifications and decide the acceptability the undertaking from the contractors/consultant and appropriately relieved of the accountability.

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Quality Assurance of Audit Reports

Review by Team Leaders Review by AAG Review by DAG Audit Reports

Team Leaders shall review the audit reports drafted by the members.

Draft Reports shall be submitted to Division Chief/ AAG by Team Leaders after his review. The audit team shall record the date on which the draft report is submitted to the AAG for review

The Division Chief/Assistant Auditor General shall review the draft report in terms of the adequacy of audit evidences supporting the audit findings, presentation, language, style, clarity and the appropriateness of the conclusions and further comments and recommendations.

The draft report shall be put up to the Department Head after the review by the AAG.

Report printed after review by Dasho AG or Department Heads

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General Conduct & Behavior in Field

Auditors while in the field are expected to conduct themselves in the manner as would up-hold the honour, dignity and prestige of the organization

All auditors shall be courteous at all times. All field auditors shall come to the place of work on time and shall not leave before office time.

Auditor shall not accept any financial or other favours or be obligated to individuals, which could compromise his duties responsibilities

Auditor(s) shall not discuss any audit findings with the agency officials without proper authority and before it has been reviewed by team leader/supervisor

Field auditors shall not indulge in socially undesirable behaviours, substance abuse, alcohol addictions which affects performance of auditor(s)

Auditors should be courteous and act with self restraint and civility at all times, so as to command the respect and emulation of others

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Auditors shall respect the office decorum of the audited agency. Auditors shall be objective and impartial in all work, particularly in his reports.

Auditors shall not argue with or criticize a colleague in the presence of agency personnel.

Auditors shall not involve themselves in the management's decision making processes;

Auditor(s) shall conduct his duty in a professional manner at all times and apply high professional standards in carrying out duties competently and objectively

Auditors shall not criticize or direct the employees of the audited agency.

Auditors shall act in a way that promotes respect for all regardless of their beliefs. Auditors shall not disclose any official information acquired from the audited agency

General Conduct & Behavior in Field