During FY 2006/07, the office of Deputy Managing Director (DMD), Internal Audit carried out 281 audits of accounts and various activities in all core business units and corporate offices in NEA. This is nearly 25 percent more than 225 audits carried in FY
2005/06. These audits include financial audit, management audit, technical audit and energy audit.
In FY 2006/07, a total of 253 financial audits were carried out all over the country to ensure compliance, effectiveness of internal control system, integrity, reliability and efficiency. In previous year, the no. of financial audits was only 225. This can be seen as improvement over the past despite limited mobility due to security problems in Terai.
Technical audit division conducted 13 technical audits in FY 2006/07 which cover especially distribution, transmission and generation, that primarily include performance evaluation, compliance with norms and standards and cost effectiveness.
During the review period, energy audits in 11 Distribution Centers were carried out. Field inspections were conducted during audit process in order to ensure application of adequate control measures by the Distribution Centers. Similarly, on sample basis, management audit in 4 units were conducted during the fiscal year. Necessary corrective actions are being taken by respective units on audit observations.
In FY 2006/07, various need-based trainings were provided to internal audit staff within and outside of the country. A group of internal audit staff were sent to India for training in coordination with Institute of Cost and Works Accountants of India (ICWAI). Likewise various trainings that include computerized auditing were also organized by NEA Training Center. These trainings are highly valuable as these provide the management tools essential for increasing competency and efficiency in the changing business environment.
The office of DMD, Internal Audit prepared and submitted annual internal audit report for FY 2005/06. An energy audit manual was prepared and finalized by the consultant SNV Lavalin, Canada, in coordination with the Institutional Strengthening Project of NEA. Also, Internal Audit Manual was revised and Risk Based Audit Guideline and Information System Audit Guidelines were prepared with the assistance of local consultants.