Prithvi Narayan Shah, the first king of unified Nepal, established an
office called 'Kumarichok' in 1826 B.S. (1769 AD) to examine the
income-expenditure accounts of government offices all over Nepal. This
foundation was the initial form of the Auditor General of Nepal. After the
establishment of the Auditor General's office in 2016 B.S. the responsibility
of auditing the government offices was given to this office. However, the
offices of Kumari Chowk and the Central Tehsil Office continue to exist for the
collection of Tejarath Sapti, the collection of government arrears on Beruju
and domestic side, the collection of other government arrears, and so forth.
The office of the Auditor General has been given authority to conduct an audit
of all government offices.
Although the "Government of Nepal
Statutory Law, 2004 BS", contained a provision stating that Shri 3 Maharaj
can appoint a Chief Auditor to oversee the audit of the government's income and
expenses, no Auditor General was appointed. Similarly, according to Part
8, Article 61 of the “Act of Interim Government of Nepal, 2007”, there will be
a Comptroller and Auditor General in Nepal who will be chosen by His Majesty
the King based on the Council of Ministers' recommendation. The Comptroller and
Auditor General, however, were not appointed accordingly. As a result, the
abovementioned provision was not put into effect.
This office was established with the
appointment of the first Auditor General of Nepal on 1959 July 1 (15th Ashadh
2016 BS) in accordance with the constitution of Nepal, 2015 B.S. to maintain
financial discipline and accountability in the country through the auditing and
to audit government income, expenditure, and activities on the basis of
regularity, economy, efficiency, effectiveness, and propriety. Initially, this
office was established under the name of "Auditor General's
Department" and in 2063 B.S. its name was changed to "Office of the
Auditor General".
This office has been diligently promoting the delivery of public services,
encouraging transparency and accountability in financial matters, and
establishing best practices. Through an independent and objective audit of the
government's operations, including government income and expenditure, the
office assists in protecting the public funds in the nation and offers
recommendations for safeguarding financial discipline. As the Public Accounts
Committee discusses the Auditor General's report regarding the execution of
laws, regulations, policies, programs, and budgets passed by the legislature as
well as the overall activities of the government, the final audit is also
regarded as a method of parliamentary oversight of the government's financial
operations. The Auditor General's Office is now conducting financial audits of
all federal and provincial government offices as well as
local-level financial audits. It has been conducting performance,
operational, information technology, and special audits based on the utmost
relevance of the subject matter.
Constitutional provisions related to the Auditor General:
1. Constitution of the Nepal, 2015
B.S. (1959 A.D.): For the first time, the provisions relating to the Auditor
General are enshrined in Articles 61 and 62 of the Part 8 (Audit), of the
Constitution of the Nepal, 2015 BS.
1.1. Appointment and
Eligibility: According to Article 61 of the aforementioned Constitution,
an Auditor General shall be appointed by His Majesty, and the remuneration,
terms of service, and tenure of office of the Auditor General shall be governed
by law. His remuneration shall be charged to the consolidated fund. The Auditor
General shall not be removed from office until the end of his term of office,
except on the same ground and in the same manner as the judges of the Supreme
Court.
1.2. Functions, Duties,
and Powers: Under Article 62 (Account Examination and Report), The
accounts of all departments of Government, including the cabinet, the Secretary
to the Senate, the secretary to the House of Representatives, the office of the
Supreme Court, and the office of the Public Service Commission, shall be kept
in such a form as the Auditor-General with the approval of His Majesty, may
prescribe, and shall be audited by the Auditor-General. He and his deputies
shall have the right at all times to have access to all books, records, and
returns relating to such accounts. The Auditor-General shall perform such other
duties and exercise other powers relating to the expenditure and accounts as
prescribed by the law.
1.3. Submission of
Annual Report: The Auditor-General shall submit a report annually to His
Majesty including the works done under this Article 62, and His Majesty shall
cause such reports to be laid before the Parliament.
2. The
Constitution of Nepal, 2019 B.S. (1962 A.D.): The Constitution of Nepal,
2019 B.S. provides the Auditor General the authority and responsibility to
audit all government offices, and the third amendment to this
constitution passed in 1980, gave the office of the Auditor General
additional authority to conduct performance audits based on Economy,
Efficiency, and Effectiveness. Other major provisions are as follows:
2.1. Appointment and
Eligibility: According to Article 75 of the Constitution, the Auditor
General shall be appointed by His Majesty in consultation with the Rajya Sabha.
The Auditor General shall remain in office for 6 years from the date of
appointment, and the remuneration and conditions of service of the Auditor
General shall be regulated by law. He may be removed from the post on the same
ground and in the same manner as the Judge of the Supreme Court. There were
provisions such as the person who has held office as an Auditor-General shall
not be eligible for appointment in government service.
2.2. Functions, Duties, and
Powers: Under Article 76 of the Constitution (Functions and Powers of the
Auditor General), The accounts of all the departments and offices of the
Government and of all the courts as well as the offices of the Supreme Court,
the National Panchayat, the Raj Sabha, and the offices of the Public Service
Commission and the Election Commission, and, also, the accounts of the
government-owned corporate bodies, shall be audited by the Auditor-General in
the manner prescribed by law, The Auditor-General and his deputies shall at all
times be entitled to have access to all documents relating to such accounts.
The Auditor General and his assistants will have the right to see all the
documents related to such accounts at any time, the accounts audited by the
Auditor General will be kept in the prescribed format.
2.3. Submission of Annual
Report: The Auditor General would submit the annual report of the work
done by him to His Majesty and such report would be placed to the National
Panchayat.
3. Constitution of
Nepal, 2047 B.S. (1990 A.D.): After the success of the First People's
Movement in Nepal, the Constitution of the Nepal 2047 B.S., under Part 13, had
provisions related to the Auditor General in Articles 99 and 100. In this
constitution, the Auditor General is also referred to in relation to the audit
of all government offices on the basis of regularity, economy, efficiency,
effectiveness, and propriety and the accounting format is to be prescribed by
the Auditor General. The main provisions of this constitution are as follows:
3.1. Appointment and
Eligibility: In Article 99 of the Constitution, there was provision
of an Auditor General of the Kingdom of Nepal who shall be appointed by His
Majesty on the recommendation of the Constitutional Council.
3.2. Functions, Duties, and
Powers: Under Article 100, accounts of the Court, all Constitutional
Organs and Government Offices, Security Agencies, etc. shall be audited by the
Auditor General considering the regularity, economy, efficiency, effectiveness,
and propriety. The Auditor General shall be consulted when an auditor is
appointed for the audit of State-Owned Enterprises by the government of Nepal.
There were provisions such as the duties of the office, the accounts of the
entities to be audited should be kept in a format prescribed by the Auditor
General, and the accounts of any other office or organization should be audited
by the Auditor General as per federal law.
3.3. Submission of Annual
Report: The Auditor General would submit the annual report of the work
done by him to His Majesty and such report would be placed to
the parliament.
4. Interim Constitution
of Nepal, 2063 B.S. (2007 A.D.): The laws related to the Auditor General
are found in Articles 122 to 124 of Part 12 of the Interim Constitution of
Nepal, 2063, which was established following the triumph of the Second People's
Movement in Nepal. Although most of the subjects covered by this constitution
are the same as those covered by the one before it, certain new provisions have
been introduced, including provisions regarding the appointment of the Auditor
General and matters to be covered in the Auditor General's annual report. The
following are the important provisions of this constitution:
4.1. Appointment and
Eligibility: According to Article 122 of the Interim Constitution
2063 B.S., the appointment of the Auditor General shall be made by the
President on the recommendation of the Constitutional Council, his term of
office shall be 6 years from the date of appointment, the position shall become
vacant if he/she resigns in writing to the President or if the term of office
is completed or if he/she does not remain in his/her position or if he/she
dies. Having reached the age of 45, holding a bachelor's degree in management,
commerce, or accounting from an accredited university or having passed the
chartered accountancy examination, having worked in a specific area of the
government of Nepal, or having at least 20 years of experience in audit-related
work, not belonging to a political party and having high moral character, are
all requirements for appointment to the position of Auditor General.
4.2. Functions, Duties,
and Powers: According to Article 123, The accounts of the Supreme Court,
Legislature-Parliament, Constituent Assembly, Commission for the Investigation
of Abuse of Authority, Auditor General, Public Service Commission, Election
Commission, National Human Rights Commission, Office of The Attorney General
and other offices of constitutional entities and the Nepal Army and Armed
Police and the Nepal Police as well as all other government offices and courts
shall be audited by the Auditor General in the manner determined by law, with
due consideration given to the regularity, economy, efficiency, effectiveness
and the propriety thereof. The Auditor General shall be consulted in the matter
of the appointment of auditors for carrying out the audit of any corporate body
of which the Government of Nepal owns more than fifty percent of the shares or
assets. The Auditor General may also issue necessary directives setting forth
the principles for carrying out the audit of such corporate bodies. The Auditor
General shall, at all times, have access to documents concerning the accounts
for the purpose of carrying out the functions specified in clause (1). It shall
be the duty of the head of the office in question to provide all documents or
information which may be demanded by the Auditor General or his/her employees.
4.3. Submission of Annual
Report: Under the provisions of Article 124, the Auditor General shall
submit an annual report of his work to the President and such report shall be
submitted to the Legislature-Parliament through the Prime Minister. It was
arranged that the details of the achievements and improvements to be made in
the future should be mentioned in relation to the efforts.
5. Constitution of Nepal,
2072 B.S. (2015 A.D.): The provisions related to the Auditor General are
subject to Articles 240 and 241 under Part 22 and Article 294 under Part 32 of
the Constitution of Nepal, which was drafted by the historic Constituent
Assembly that was established following the success of the second people's
movement in Nepal in 2062/2063 B.S. In this constitution, the provisions
regarding the appointment and qualifications of the Auditor General remain the
same as in the previous constitution. However, some new provisions have been
added regarding the Auditor General's scope of work and reports. According to
this constitution, the audit up to the local level has been arranged by the
Auditor General, and the scope and responsibilities of this office have been
widened. The main provisions of this constitution are as follows:
5.1. Appointment and
Eligibility: According to Article 240 of the Constitution of Nepal 2072
BS, the appointment of the Auditor General shall be made by the President on
the recommendation of the Constitutional Council. His term of office shall be 6
years from the date of appointment. For appointment to the post of Auditor
General, having obtained a bachelor's degree in management, commerce, or
accounting from a recognized university or having passed the chartered
accountancy examination, having worked in a specific category of the Government
of Nepal or having at least twenty years of experience in audit-related work, not
being a member of any political party, having completed 45 years of age,
provisions such as requiring qualifications such as maintaining high moral
character are included.
5.2. Functions, Duties, and
Powers: According to Article 241 of the Constitution, the functions,
duties, and powers of the Auditor General are as follows:
· The accounts of all Federal and Provincial Government Offices including
the Office of the President, Office of the Vice-President, Supreme Court,
Federal Parliament, Provincial Assembly, Provincial Government, Local Level,
Constitutional Bodies and Offices thereof, Courts, Office of the Attorney
General, Nepal Army, Nepal Police and Armed Police Force, Nepal shall be
audited by the Auditor-General in accordance with law, having regard to, inter
alia, the regularity, economy, efficiency, effectiveness and the propriety
thereof.
· The Auditor General shall be consulted in the matter of
appointment of an auditor to carry out the audit of a corporate body of which
the Government of Nepal or the Provincial Government owns more than fifty
percent of the shares or assets. The Auditor General may also issue necessary
directives setting forth the principles for carrying out the audit of such
corporate body.
· The Auditor General shall have
the right to examine any books of accounts for the purpose of carrying out its
functions, and it shall be the duty of the concerned chief of the office to
provide such documents and information as may be demanded by the Auditor
General or any of his or her employees.
· In addition to the
designated office, any other office or organization should be audited by the
Auditor General according to federal law.
· Accounts of the entity
to be audited shall be kept in the format prescribed by the Auditor General in
accordance with federal law.
5.3. Submission of Annual
Report: Article 294 (Annual Report of
Constitutional Bodies) of the Constitution stipulates that constitutional
bodies, including the Auditor General, must submit an annual report of their
work to the President and such a report shall be submitted to the Federal
Parliament through the Prime Minister. According to section 19 of the Audit
Act, 2075 BC, the things to be disclosed in the annual report in sub-section 2
of the said article shall be audited by the Auditor General during the year,
the details of the actions taken, the summary of the main transactions observed
from the audit, the status of the implementation of the audit report and the
improvements to be made in the future and the necessary It has been arranged
that other things should be included. In addition, there is a provision in the
Audit Act to issue an audit report with an opinion after completing the audit
of the designated entity. In Article 294 of the Constitution and Article 19 of
the Audit Act, the Auditor General prepares a separate annual report on the
activities of each province and submits it to the head of the respective
province and the report is submitted to the provincial assembly through the
chief minister.
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Last Updated at: 01/12/2023