1. Financial Control Measures: Financial Accounting and Reporting
Session Outline
Sources of Fund
Concept
Branches of Accounting
Importance
Accounting Information System
Exercise
Project Accounting
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

2. Source of Fund Sources Revenue of Government Foreign Aid
Loan ( Bilateral/Country )
Grant (Bilateral-Country and Multilateral-WB, ADB and IMF etc. )
Internal Borrowing
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

3. Classification of Foreign Aid
Loan
Bilateral & Multilateral
Cash
Direct Payment
Reimbursement
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

4. Classification of Foreign Aid
Grant
Bilateral (Country) &Multilateral
Direct payment
Cash
Reimbursement
Technical Assistants
Commodity
Turn Key Project
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

5. Branches of Accounting
Financial Accounting:
Financial Accounting involves recording and classifying any transactions, and preparing and presenting financial statements to be used by internal and external users.
Management Accounting:
Managerial or management accounting focuses on providing information for use by internal users, the management. This branch deals with the needs of the management rather than strict compliance with the generally accepted accounting principles.
Cost Accounting:
Sometimes considered accountings a subset of Management accounting, cost accounting refers to the recording, and analysis of cost.
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

6. Financial Accountability
Importance
Institutional Memory
Documentation
Evidence
Transparent
Risk Management
Financial Discipline
Financial Accountability
Financial Position and Performance
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

7. Accounting Information System
Transactions
GAAP
Accounting Basis
Process
Output
Reporting
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

8. NPSAS Cash Receipt and Payment Account NPSAS Cash
Recording of Inter Entity Transactions
Disclosure of financial information
Comparison of Budget and actual Expenditures
Accounting policies & notes to accounts
Disclosure of third party payment
Convert into accrual basis accounting
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

9. आर्थिक प्रशासन संचालन गर्ने कानुनी संरचना
नेपालको संविधान २०७२
अन्तर सरकारी वित्त व्यवस्थापन सम्बन्धी विधेयक २०७४
आर्थिक कार्यविधि ऐन २०५५
विकास सहायता नीति २०७१
सार्वजनिक खरिद ऐन २०६३, नियमावली २०६४
भ्रमण खर्च नियमावली २०६४
राष्ट्रिय प्राकृतिक श्रोत तथा वित्त आयोग ऐन २०७४
स्थानीय सरकार सञ्चालन ऐन २०७४
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

10. 4 & 5 for DTCO, FCGO and MoF and others entities for reporting
स्थानीय सञ्चित कोष ब्यवस्थापनप्रणाली Sub-national Treasury Regulatory Application-SUTRA
1. Budget and program formulation
2. Accounting
3. Reporting
4. DTCO
5. Monitoring
1, 2 and 3 for Local level and
4 & 5 for DTCO, FCGO and MoF and others entities for reporting
Deposit and Revenue Models are being Prepared
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

11. गाउँपालिका तथा नगरपालिकाको
गाउँपालिका तथा नगरपालिकाको कारोबार, आय व्ययको लेखा प्रणाली तथा राजश्व र खर्च शीर्षकको वर्गीकरण तोकिए बमोजिम हुनेछ।
स्थानीय तहले आफ्नो कारोबारको लेखा महालेखा नियन्त्रक कार्यालयको सिफारिसमा महालेखा परीक्षकबाट स्वीकृत भए बमोजिमको ढाँचामा राख्नु पर्नेछ।
कोषबाट खर्च भएको रकमको चौमासिक प्रगति त्यस्तो अवधि समाप्त भएको पन्ध्र दिनभित्र कार्यपालिकाको बैठकमा पेश गर्नु पर्नेछ।
आफ्नो आय र व्ययको विवरण प्रत्येक महिनाको सात गतेभित्र सार्वजनिक गर्नु पर्नेछ।
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

12. कर्मचारीको जिम्मेवारी
स्थानीय तहको आय व्ययको लेखा राख्ने जिम्मेवारी पाएको कर्मचारीले ठीकसँग लेखा नराखेको कारणबाट
नेपाल सरकार, प्रदेश सरकार वा स्थानीय तहलाई कुनै किसिमको हानि, नोक्सानी तथा क्षति हुन गएमा
त्यसरी पर्न गएको हानि, नोक्सानी त्यस्तो हानि, नोक्सानी गर्ने कर्मचारीबाट असुल उपर गर्नु पर्नेछ।
(स्थानीय सरकार सञ्चालन ऐन २०७४ दफा ७६)
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

13. गाउँपालिका तथा नगरपालिका
1. गाउँपालिका तथा नगरपालिकाले स्थानीय सञ्चित कोषमा भएको आय व्ययको चौमासिक शीर्षकगत विवरण तयार गरी सङ्‍घीय अर्थ मन्त्रालय, प्रदेश अर्थ मन्त्रालय, मन्त्रालय तथा राष्ट्रिय प्राकृतिक स्रोत तथा वित्त आयोगमा पठाउनु पर्नेछ।
2. स्थानीय तहको आय व्ययको लेखा राख्ने जिम्मेवारी पाएको कर्मचारीले ठीकसँग लेखा नराखेको कारणबाट नेपाल सरकार, प्रदेश सरकार वा स्थानीय तहलाई कुनै किसिमको हानि, नोक्सानी तथा क्षति हुन गएमा त्यसरी पर्न गएको हानि, नोक्सानी त्यस्तो हानि, नोक्सानी गर्ने कर्मचारीबाट असुल उपर गर्नु पर्नेछ।
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

14. IFMIS (Integrated Financial Management Information System)
LMBIS (Line Ministry Budget Information System) - Line Ministry
BMIS (Budget Management Information System) - MoF
DECS (District Expenditure Control System TSA) - DTCO
FMIS (Financial Management Information System) - FCGO
CGAS (Computerized Government Accounting System) - Paying Office
RMIS (Revenue Management Information System) - Paying Office
AIMS (Aid Management Information System) - MoF
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

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Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

16. खाताहरु
ग-४ स्थानीय सञ्चित कोष
ग २ - १ चालू खर्च खाता
ग २ - २ पूँजिगत खर्च खाता
ग ५ स्थानीय विशेष कोष खाताहरु
संविधानको धारा २२९ र स्थानीय सरकार सञ्चालन ऐनको दफा ६९ अनुसार स्थानीय सञ्चित कोषको संचालन गाउँपालिका वा नगरपालिकाको प्रमुख प्रशासकीय अधिकृत र लेखा प्रमुखको संयुक्त दस्तखतबाट हुने
आकस्मिक कोष : गाउँपालिका तथा नगरपालिकाले स्थानीय कानून बमोजिम आकस्मिक कोष स्थापना गरी सञ्चालन गर्न सक्नेछ।
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

17. Integrated Finance Code, Classification and Explanation -2074
It has been approved by OAG on 2074/7/1
From FY 2074/75 –implementation at provincial government and local government
From FY 2075/76 – at Federal government
Revenue, Expenditure, Assets and Liabilities: Federal Government, Provincial government and local government
It is used in planning, budgeting, accounting and reporting
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

18. Financial Control Measures: Financial Accounting and Reporting
Practical Problem
Cash Basis
Nepal Public Sector Accounting Standard Cash Basis (NPSAS)
Accrual Accounting Basis
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

19. Project Accounting Project Accounting Policy
Basis of Accounting: Cash Basis of Government Accounting System
Mode of Payment: Within Approved budget on project of foreign aid: Cash, Direct payment, Letter of Credit (LC) and commitment letter will be payment methods
Recognition of Project Expenditure Value Date
Source and application of Fund
Fiscal Year
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

20. Classifications of Foreign Aidऋण
वैदेशिक सहायता
अनुदान
द्भिपक्षीय
बहुपक्षीय
द्भिपक्षीय(मुलुकबाट)
नगद
सोधभर्ना
सोझै भुक्तानी
वस्तुगत
प्राविधिक सहायता
टर्नकी ऋण
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

21. Project Formulation Process
1. Before Receiving Foreign Aid jointly (Donor and Govt.) prepare Project Appraisal Report (PAR) with cost estimate 2. After preparing PAR, how much money has to be covered by Donor and Government out of total cost then has to prepare Loan Grant Agreement between Govt. and donor agencies 3. Amounts should be divided into difference headings: % of expenditure, Payment and Reimbursement (Disbursement Procedures), Procurement Procedure, .
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

22. Project Formulation Process
3. Amounts should be divided into difference headings:
% of expenditure,
Payment and Reimbursement (Disbursement Procedures),
Procurement Procedure,
Loan and interest and duration of Payment
4. After agreement then implementation stage will start
5. After agreement then donor start providing amount according to disbursement Procedures
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

23. Project Formulation Process
6. ADB and WB (Multilateral Donor) procedure of payment of loan and grant will on the basis of disbursement guideline of ADB and WB.
7. Other than WB and ADB the disbursement procedure will be adopted according to own procedures of the country or Institution
8. Project Accounting will be maintained by the Project Implementation Unit (PIU), Implementing Agencies (IA), Executing Agencies (EA)
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

24. Project Loan Time or Cycle
Approval Date
Signature Date (Signing Date)-
Effective Date
Completion Date then
Project/Loan close Date
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

25. Reimbursement Procedure
ADB’s reimbursement is made only to the
GON Central A/C
For Reimbursable Loan
Financial Comptroller General Office
A/C No:
For Reimbursable Grant
A/C No:
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

26. Property and Inventory Management
Classification of Assets/Property
Capital and Recurrent
Expendable and non expendable
Accounting of Property and Inventory
Accounting is maintained according to Inventory Accounting System
Receiving Procedure on the basis of Procurement act 2063 and regulation 2064 have to be followed
Utilization and management of assets on the basis of Financial Procedure act and regulation have to be followed
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

27. Receiving Model of Property
Purchased by the Government
Receiving from foreign aid (Commodity)
Turnkey
Commodity
Thing to be considered while receiving commodity and if that commodity has to allocate and handover to project
Per unit cost
Receiving Date
Detail descriptions of goods
Discount on Custom
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

28. Accounting Policy of Assets and Inventory
Cash basis accounting
No depreciation
Separate records will maintain of expendable and non expendable
Price of FA will maintain according to cost price or listed price on bills/Invoice
Scrape value and auction of assets will be done according to financial procedures act and regulation similarly record of scrap and auction should be recorded and reconciled from inventory ledger on time.
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

29. Accounting of Turnkey Assets
Thing to be considered while receiving Turnkey:
Responsibility, of Design ,utility and performance capacity ,will be concerned contractors.
Price will be according to commitment accounts which is mentioned on turnkey agreement
Accounts does not have to maintain
After completion the turnkey the government will take over and record management will be maintained according to commodity procedures.
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

30. Reporting
A. Full document Procedures /Non Statement of Expenditures (Non SoE ) B. Statement of Expenditure Procedures C. Project Management Report (PMR)/Financial Management Report (FMR) D. Performance Based
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

31. A. Full document Procedures /Non Statement of Expenditures (Non-SoE)
All original bills and invoice and other documents should be sent to Donors
Accounts will maintain by Donors but accounts must be maintain according to government accounting system by project coordination unit also.
Photocopy of bills, Invoice and other documents must be recorded by project coordination unit
Incase some bills and invoice and other documents are not approved by Donor agencies at that time payment should be done by source of GoN and that must be adjusted.
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

32. B. Statement of Expenditure
2. Withdrawal Application
3. Unaudited Project Account
4. Audited Project Account
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

33. C. Financial Monitoring Report
1. Statement of Source and fund 2. Financial Statement 3. Statement of Designated Account/ Imprest Account 4. Summary of Trimester wise Budget Allocation 5. Statement of Cash Withdrawal (Disbursement) 6. Statement of Exchange Gain/Loss
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

34. D. Performance Based 1. Financial Monitoring Report
2. Withdrawal Application
3. Unaudited Project Reports
4. Audited Project Report
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

35. C. Project Management Report(PMR)/Financial Management Report (FMR)
Financial Monitoring Report (FMR ) /Project Monitoring Report (PMR ) /Implementation Progress Report (IPR )
Withdrawal Application (WA )
Unaudited Project Reports (UPR )
Audited Project Report (APR )
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

36. B3. Unaudited Project Account
Sources and Uses of Funds Anusuchi –
( Include Statement of Designated/ Imprest Account)
1. Signed By: A/C officers & Project Coordinator of PCT/PCU – Name and Project Name
2. Signed By: Director General (Department) and Secretary General (Ministry ) - Name
3. Signed By: Financial Comptroller ( FCGO ) :Reimbursement Section or Cash - Treasury Section and Name
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

37. B4. Audited Project Account
Sources and Uses of Funds Anusuchi –
( Include Statement of Designated /Imprest Account)
1. Signed By: A/C officers & Project Coordinator of PCT (Project coordination Team)/PCU (Project Coordination Unit) – Name and Project Name
2. Signed By: Director General (Department) and Secretary General (Ministry ) - Name
3. Signed By: Financial Comptroller ( FCGO ) :R- R Section or Cash -T Section and Name
4. Signed By: Auditor General (OAG) - Name
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari

38. Thank You
Advanced Course on Management and Development 2075, Sundar Shrestha and Gobinda Bhandari