Functions and Powers of the Arrears Settlement Monitoring Committee in Nepal

Question: Mention the functions, duties and powers of the Arrears Settlement Monitoring Committee.

Introduction

The Financial Procedures and Fiscal Responsibility Act and Rules of Nepal contain various provisions for reducing and settling irregularities (beruju) identified during the audit of public accounts.

To monitor the settlement of audit irregularities and improve the effectiveness of settlement-related activities, the Financial Procedures and Fiscal Responsibility Rules provide for an Arrears Settlement Monitoring Committee, chaired by the Chief Secretary and consisting of three members.

The major functions, duties, and powers of the Committee are as follows:

Functions, Duties and Powers

1. Review and evaluation: To examine and evaluate the activities undertaken by ministries, central-level agencies, departments, and offices for settling audit irregularities.

2. Discussion with responsible officials: To summon the heads of ministries, central-level agencies, or departments to the Committee for discussion where the settlement of outstanding audit irregularities is inadequate or has not been undertaken.

3. Recommendation for disciplinary action: To direct the concerned ministry to take action, based on an assessment, against office heads and employees who fail to settle audit irregularities or facilitate their settlement.

4. Recommendation to the Government of Nepal: To recommend departmental action to the Government of Nepal against the responsible accounting officer if the prescribed action is not taken in response to the Committee's directions.

5. Issuing necessary directions: To issue necessary instructions to the concerned ministries, central-level agencies, and departments to expedite the settlement of audit irregularities.

6. Monitoring the initiation of settlement procedures: To monitor whether the concerned authorities have initiated the required procedures for settling outstanding audit irregularities.

7. Monitoring the recovery of amounts due: To monitor whether amounts classified for recovery have been recovered within the prescribed period and whether the relevant cases have been forwarded to the Kumari Chowk and Central Tahasil Office, as required.

8. Obtaining and submitting progress reports: To request progress reports every three months from the concerned ministries, central-level agencies, and departments, specifying the amounts recovered, regularized, and remaining as unsettled advances. The Committee must submit the reports in the prescribed format to the Ministry of Finance, the Office of the Prime Minister and Council of Ministers, and the Public Accounts Committee of the Federal Parliament.

Conclusion

The lawful and prudent use of public funds is a fundamental basis of fiscal discipline and good financial governance. The Arrears Settlement Monitoring Committee plays an important role in strengthening accountability, monitoring audit irregularities, ensuring the recovery of public money, and promoting timely settlement.

Therefore, effective implementation of the existing legal provisions, regular monitoring, clear assignment of responsibility, and timely action against non-compliance are essential to reduce audit irregularities and strengthen financial accountability in Nepal.