Kathmandu, September 13 The Ministry of Federal Affairs and Local Development has issued model Financial Procedure Law to facilitate the local levels in the operation of consolidated fund, implementation of budget and programme and internal control of financial transactions. As per the law, the consolidated fund of local levels shall have amount recovered as tax and non-tax revenue; amount received from the federal and provincial government, equalisation grants, conditional grants, complementary grants and special grants received from the federal and provincial governments, and internal loan, among others. The amount so collected for the consolidated fund shall be deposited in any bank licensed by Nepal Rastra Bank. “Executive officer of the local levels shall maintain and update account of the fund and prepare its annual financial report,” it read. The law requires the concerned local level to prepare budget for the next fiscal and have it passed by municipal assembly in accordance with Article 230 of the constitution. The limit of income and expenditure shall be estimated by mid-April of the fiscal. “The budget for the next fiscal shall be prepared by the end of June on the basis of periodic plan and framework of mid-term budget passed by the local level,” it said. The budget shall be released to the concerned offices and responsible officers through banking channel upon approval of the fiscal budget and programme by the assembly. Nonetheless, the local level may exercise control over or fully or partially hold the allocated amount as required. The local level will not be allowed to transfer more than 25 per cent of the amount under one heading to another if the allocated amount is not sufficient to implement a certain programme. “If the amount allocated by the local level could not be spent for any reason, it shall be deposited in the fund at the end of the fiscal,” the law said. It also requires the local levels to deposit revenue in bank as income in the fund. The official responsible for maintaining account should develop an integrated financial report of allocated budget, revenue, deposit, foreign grants and investment, and submit its report to the municipal assembly, Financial General Comptroller Office and the Office of the Auditor General after the completion of each fiscal.