Kathmandu, March 16

The Ministry of Federal Affairs and Local Development has directed all 75 district coordination committees and 744 local levels to close down income and expenditure (recurrent and capital) accounts, special fund and deposit accounts of the now dissolved district development committees, municipalities and VDCs and open new accounts as per new local level structures.

All four metropolitan cities, 13 sub-metropolitan cities, 246 municipalities and 421 rural municipalities will now have to open new accounts in their respective names.

Similarly, the local levels have been told to conduct internal audit of all financial transactions carried out by then DDCs, municipalities and VDCs till March 10, the day when newly created local levels had officially came into operation.

“All local levels are hereby requested that the details of all bank cheques issued by then local bodies but not cashed be provided to the DCC and the District Treasury and Accounts Comptroller Office while sending its copy the concerned bank,” read the directive.

After closing down previous accounts, the local levels are required to to transfer available fund to new accounts. The MoFALD has also directed all DCCs to use new DDCFAMP (District Development Committee Financial and Management Package) software by closing down the old ones for accounting.

“The ministry is working on the new DDCFAMP and will provide it to the DCCs as soon as possible,” read a circular issued by the MoFALD.

Meanwhile, the ministry said it was doing groundwork to implement Municipal Administration and Revenue System in all rural municipalities and municipalities with effect from the upcoming fiscal 2017/18 to reduce financial risk and maintain good governance by delivering service to the public in an easy and simple manner.

“This system has already been brought into use in Kathmandu Metropolitan City and is yielding positive results,” said the MoFALD.