NGAWANG JAMPHEL
Thimphu
The Royal Audit Authority (RAA) has made remarkable progress in enhancing governance, transparency, accountability, and the overall performance of the public sector through its comprehensive audit recommendations.
As highlighted in the Annual Performance Report for 2023-24, the RAA’s work continues to drive significant changes that contribute to better management of public resources and improved service delivery to citizens.
One of the most notable achievements for the RAA this year has been the successful endorsement and implementation of its audit recommendations. During the 1st Joint Sitting of the Fourth Parliament, the RAA’s Annual Audit Report (AAR) for the fiscal year 2022-23 was presented.
A unanimous decision was reached, with all seven recommendations being embraced by Parliament. This overwhelming endorsement was a significant milestone, reflecting the shared commitment of the government and the Parliament to ensure greater accountability, efficiency, and transparency in the public sector.
The RAA’s role goes beyond merely identifying financial discrepancies; it aims to foster a culture of accountability by ensuring the efficient use of public resources.
In the fiscal year 2023-24, a significant portion of the RAA’s financial and compliance audit recommendations were implemented successfully, with 57% of the recommendations put into action within a month.
This rapid response highlights the importance of the RAA’s audits in improving public financial management and ensuring that government entities are adhering to financial regulations.
The RAA’s performance audits also witnessed similar success, with 57% of the performance audit recommendations implemented during the same period.
These statistics showcase the commitment of audited agencies to not only address the issues identified but also to create long-term improvements in governance and service delivery.
The core mission of the RAA is to drive positive transformation through its audits, making sure that government operations are efficient, transparent, and accountable.
The organization achieves this by ensuring that financial statements presented by public institutions are accurate, promoting transparency in financial operations, and enforcing compliance with established laws and
regulations.
In doing so, the RAA significantly contributes to strengthening Bhutan’s Public Financial Management (PFM) system, thereby increasing public trust in government operations.
Financial integrity is one of the key areas in which the RAA has made considerable strides. Over the course of the year, the RAA conducted a thorough examination of public sector spending and identified numerous financial irregularities.
These irregularities led to the recovery of Nu 405 million in cash through restitution, which was an important outcome of the RAA’s diligent audit process.
In addition to financial recoveries, the RAA also focused on the completion and quality assurance of infrastructure projects funded by the government.
Every year, the government allocates substantial resources for infrastructure development, and the RAA plays a crucial role in overseeing that these resources are used efficiently and that projects are completed on time.
In FY 2023-24, the RAA identified 12 incomplete projects across seven agencies. These projects were not only delayed but also risked wasting public funds. The RAA went beyond merely reporting these issues by actively engaging with the concerned agencies to ensure the successful completion of the projects.
The intervention of the RAA helped to revitalize these critical initiatives, ensuring that they were completed and met the required standards. This effort safeguarded the efficient use of resources, ensuring that every allocated Ngultrum resulted in tangible progress and development.
Moreover, the RAA’s commitment to ensuring the quality and sustainability of public infrastructure is evident in its work to rectify substandard construction and goods delivery.
The RAA also identified 91 instances across 35 agencies where the work delivered did not meet the required quality standards. Such substandard work often stems from poor monitoring and verification processes, which undermines the government’s value-for-money objectives.
The RAA actively followed up on these cases and worked with the agencies to rectify the issues. This process not only improved the quality of construction projects but also ensured that the public’s investment in infrastructure projects delivered long-term benefits.
The RAA’s audit work also extends to the certification of financial statements, which plays a vital role in enhancing the credibility and transparency of government financial management.
During FY 2023-24, the RAA certified 439 financial statements, ensuring that the financial information provided by various government entities was accurate and reliable.
By maintaining high standards in financial reporting, the RAA strengthens the foundation of good governance and builds public confidence in the government’s financial management.
In terms of compliance, the RAA continues to place a strong emphasis on ensuring that government agencies comply with regulations. In FY 2023- 24, 21 instances of non-compliance were identified across 17 agencies.
However, nearly all the agencies involved have committed to addressing these lapses and ensuring future compliance. This demonstrates a positive shift towards a culture of compliance and accountability within. The RAA’s impact also extends to promoting ethical conduct among public officials. In cases where ethical violations and financial misconduct were identified, the RAA recommended sanctions and reprimands.
The authority recommended sanctions against 150 public officials across 33 agencies for misconduct related to the management of public funds.
Moreover, the RAA has contributed to improving processes and systems within public institutions. Through its audits, the RAA identified areas where improvements could be made in the operational processes of various agencies.
These recommendations led to the implementation of 18 process and system enhancements across multiple agencies. This collaborative effort between the RAA and the audited agencies has resulted in more efficient operations, improving the overall performance of the public sector.
Through these various initiatives, the RAA has not only strengthened the financial systems of the country but also fostered a culture of transparency, accountability, and ethical conduct in public service.
The RAA’s work has significantly impacted Bhutan’s governance framework, ensuring that public resources are managed effectively and that services are delivered in a transparent and accountable
