Internal Audit, led by the Deputy Managing Director, is responsible for reviewing the internal control system, economy, efficiency and effectiveness of operation, risk issues and compliance to applicable rules and regulations. The Deputy Managing Director is assisted by a Director and four regional units responsible for the audit of regional offices of their jurisdiction. The Internal audit functions are structured into financial audit, technical audit, energy audit and management audit. Division wise summaries of the performance/non-performance and associated reasons for non-performance during the period are given in the following paragraphs in brief.
During the FY 2010/11 financial audit was carried out in 134 budget centers out of 208 budget centers of NEA altogether. The audit findings, suggestions and recommendati on thereon are included in the annual report for the year. The audit of the transacti ons of the FY 2010/11 is in progress. Up to the end of second trimester of the fi scal year transaction of total 99 offices has been audited. The audit of the transacti ons of the third trimester has already been started. The status of progress on clearance of audit observations is in improvement.
Technical / Energy Audit
Non-availability of adequate technical audit staffs constrained the coverage of technical audit. It also audits management activities, energy balance and technical aspects carried out by various business groups.
Although, no management audit as such was carried out due to non-availability of capable audit staff, some aspects of management audit were covered under the financial audit. The findings under this activity are to be covered under the financial audit report.
Reporting and Progress Monitoring
The annual audit report for the year 2009/10 was submitted to the Managing Director in January 2011. In addition, a comprehensive presentation was made on the annual report to high level team including the Managing Director in order to bring further effectiveness in future. Viewing the need of interaction at least on regional basis to enhance the audit effectiveness by facilitating the clearance of audit observation and monitoring the progress thereon, an open discussion and interacti on program was organized at Biratnagar Regional Office of Distribution & Consumer Service in February 2011.
Conti nuing the program for enhancing the professional skill of Internal Audit personnel, a group of 14 support staff has been trained in Internal Audit from the Institute of Cost and Works Accountants of India, Delhi during the FY 2010/11.