Financial Management of Subnational Governments in Nepal Overall

Financial Management of Subnational Governments in Nepal

Overall Financial Management in Nepal Constitution of Nepal Federal Consolidated Fund Province Consolidated Fund Local Consolidated Fund Ministrires and Department Ministries and Departments Local Government Central Level Accounting Operational Accounting Operating Agencies, Field Offices, Projects Financial Administration Section

Reporting of Federal and SNG’s Accounts § § § Federal Reporting from executing offices to Supervisor Office & DTCO Reports to FCGO & respective departments MDA’s prepare agency-wise consolidated financial statement & report to FCGO consolidates the reports from DTCO and central agencies FCGO submits the final report to OAG. ICT based Systems are in place SNG’s Reporting §Reporting from Local governments to DTCO and Province FCGO §DTCO Reports to PFCGO §PFCGO prepare consolidated financial statement & MOEAP and FCGO §FCGO consolidates and Prepares General Government Reporting §FCGO submits/Publish the final report to OAG. §ICT Based system are being developed

Reporting of Operational level of all 3 level • Monthly Reporting § Statement of Expenditure (OAG 13, 213) § Details of Advance Amount (OAG 14) § Bank Reconciliation Statement (OAG 15) § Monthly Statement of Revenue (OAG 9) § Monthly Statement of Retention (OAG 19) § Statements of other funds Annual Reporting §Financial Statements of Expenditure (OAG 17, 208) §Financial Statements of Revenue (OAG 193) §Financial Statement of Retention (OAG 194) §Annual report of assets (OAG 57) §Summary annual progress report §Annual reports of other funds

Fund Flow inter-linkage in Federal System Federal Province Central Bank MOF/ FCGO Province Treasury Comptroller District Treasury Comptroller office Province Govt. Trans. Bank Local Level Local Govt. Office Provincial Unit Office under Province Federal Govt. Trans. Bank Federal Unit District Offices under Federal Govt.

Federal Financial Management Parliament /PAC Budget Approval MDA’s OAGN Mo. F Final Audit BMIS LMBIS Authorization Program Execution IRD CGAS/FMIS RAS FCGO DTCO Compliance with Financial Acts, norms and standards TSA Bank E-Payment Contract Cheque issue SPENDING UNITS Internal Audit Payee information entry OAG Forms Journal Voucher & Ledgers RMIS Payment Order Preparation Customer/Payee Disclosure of Financial Statements

Treasury Operations of Province and Local Government Consolidated Fund Treasury Management System Revenue A/C Expenditure A/C Recurrent A/C Other Special Funds Employee welfare fund, Disaster recovery fund, Maintenance fund etc. Other A/C’s Capital A/C Regular Expenses

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