Office of the Auditor General (Nepal)

The Office of the Auditor General (OAG) of Nepal is the supreme audit institution (SAI) of the country. Established under the Constitution of Nepal, the OAG is an independent and autonomous body responsible for auditing the accounts of all government offices, constitutional bodies, courts, security agencies, and other entities receiving funds from the consolidated fund or government revenue.

Mandate and Functions:

The primary mandate of the OAG is to promote accountability, transparency, and efficiency in the use of public resources. To achieve this, the OAG performs a range of functions, including:

• Financial Audit: Examining the financial statements of public entities to ensure accuracy, completeness, and compliance with applicable laws and regulations.
• Performance Audit: Assessing the economy, efficiency, and effectiveness of government programs and projects.
• Compliance Audit: Determining whether public entities have complied with relevant laws, regulations, and policies.
• Regularity Audit: Examining transactions to ensure they are properly authorized and recorded.
• Reporting: Submitting an annual report to the President of Nepal, which is then presented to the Parliament. The report highlights audit findings and recommendations for improvements.

Independence:

The OAG operates independently from the executive, legislative, and judicial branches of government. The Auditor General is appointed by the President on the recommendation of the Constitutional Council. The OAG has its own budget and staff, allowing it to conduct its work without undue influence.

Legal Framework:

The legal basis for the OAG is enshrined in the Constitution of Nepal. Specific legislation, such as the Audit Act, further defines the OAG's powers, duties, and responsibilities.

Significance:

The OAG plays a crucial role in ensuring good governance and preventing corruption in Nepal. By providing independent and objective audits, the OAG helps to improve the management of public resources and enhance public trust in government. Its findings and recommendations contribute to policy development and promote greater accountability across the public sector.