The Ministry of Federal Affairs and General Administration has issued a circular to the local levels, requesting them to implement Nepal Audit Management System, which was recently brought into operation by the Office of the Auditor General.

This electronic system enables all the public bodies, including the local levels to get interfaced with the OAG directly. The circular said all the local levels were required to implement the NAMS for cooperating with the OAG in maintaining the records related to audit electronically. This system keeps computerised records of audit and audit observations at the same time.

Besides creating a valuable database, it also allows the local levels and other auditees to upload their responses or replies to the audit observations and will result in effective monitoring, according to the MoFAGA.

NAMS is expected to address issues such as lack of proper audit planning, audit backlogs, lack of follow-ups, lack of documentation and working papers maintenance, monitoring and evaluation of programmes, generation of standardised audit reports, lack of compliance to mandates, lack of communication between auditee and auditor, among others.

Under the Audit Act, 1992, the OAG is obligated to review the internal audit findings and recommendations made by the internal auditors.

NAMS will help the OAG auditors avert the risk to sub-national governments by accessing online internal audit reports, and ensuring the implementation of internal audit recommendation and settling audit findings.

NAMS is an easy-to-use software.

User-based access has been provided to all the internal auditors at the federal and sub-national levels.

A version of this article appears in the print on December 26, 2021, of The Himalayan Times.