RAA submits Performance Audit Reports

The report states that the FCB incurred damages in food items worth Nu 5,113,003 during the year 2011 to 2015

Usha Drukpa, Thimphu

The Royal Audit Authority (RAA) has submitted a number of Performance Audit Reports which, among others, include the Tourism Sector, Food Corporation of Bhutan Limited, School Feeding Programme and Business Opportunity and Information Centre.
As per the Annual Audit Report 2016, they have compiled un-resolved significant issues from 815 reports issued which includes; the certification of the Annual Financial Statements of the Royal Government for the fiscal year ended June 30th 2016, audit of accounts and operations of the RAA, accomplishments made by RAA during the year and summary on significant issues from the Audit of Hydropower projects.
In the Performance Audit Report of Tourism Sector, in particular, RAA has reviewed the adequacy of legal and policy framework in achieving the policy objectives of ‘high value, low impact’, assessing the effectiveness of internal controls in preventing or checking the occurrences of undesirable practices such as, undercutting of tourism tariff; reviewing the adequacy of institutional framework, in particular the monitoring and coordination mechanism; and evaluating the achievement of targets and objectives of the Tourism Sector. The audit covered the period from 2011 to 2015.
Tourism Sector has made significant contribution to the economy. Gross earnings from tourism have increased from USD 47.68 million in 2011 to USD 71.05 million in 2015.
The jobs in various sectors such as guides, hotels, restaurants, national airlines and handicrafts were increased from 18,778 in 2011 to 26,508 in 2015.
Besides its contribution and significant achievements, the RAA has also observed certain weakness in the system, stated the report.
Similarly, the Performance Audit Report on Food Corporation of Bhutan Limited reviewed the legal, policy and institutional framework, procurement management system, store management and human resources management of the Corporation for the period from 2011 to 2015. The audit also covered risk areas identified as vital in fulfilling the Corporation’s intended objectives.
While some of the significant deficiencies and weakness were also observed by RAA. Some of the cases of damage and dumping of goods were observed during the period. The total food items valuing Nu 5,113,003.58 were reported damaged during the year 2011 to 2015.
The RAA has also observed overlap in powers, poor accountability and lack of clarity in the roles and responsibilities. The audit has noted various lapses in the human resource management practices in FCBL.
The Performance Audit Report on Employment Generation and Promotion Initiatives was carried out to ascertain whether due regard was given in ensuring economy, efficiency and effectiveness in generation and promotion of employment in the country, in particular the effectiveness of employment generation and facilitation programs undertaken by the MoLHR.
As such, the audit gave more emphasis on reviewing the systemic issues pertinent for effective administration of employment. The audit covered the period from 2010 to 2015. The RAA has observed inadequacies in the MoLHR as well.
The Performance Audit Report on Provision of Patient Meals was conducted with a focus on nutrition and management of patient food service system. The audit ascertained whether meals provided met the nutritional requirement of the patient for fast recovery; overall health improvement; and to evaluate the quantity, safety and hygiene of food for in-patients. The audit also aimed to assess whether hospitals provided conducive environment encouraging inpatients to eat and enjoy their meals.
The Performance Audit Report on School Feeding Programmewas carried out with a focus on nutrition and to ascertain whether the Programme helped in improving nutrition and reducing nutrient deficiencies, and initiatives instituted by the relevant authority to improve nutritional status of schoolchildren.
Despite the positive contribution of School Feeding Programme and the initiative of the Ministry of Education, the RAA also observed shortcomings and deficiencies in the management of school feeding.
The performance audit report on ‘Business Opportunity and Information Centre’ was conducted with an objective to verify whether adequate policy and institutional framework existed in governing the Centre and whether the revolving funds were utilized efficiently and effectivelyfor the intended purpose. Accordingly, the review focused among others, on ascertainingwhether adequate and effective monitoring systems were in place and whether planned activities were achieved. The audit covers the period from inception till 31st May 2016 (closure of the Centre).
Meanwhile, the Annual Audit Report (AAR) 2016 of the Royal Audit Authority has been tabled in the parliament on 13th June 2017.

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