Local Governments Face Weak Financial Governance, Audit Report Reveals

A report by the Office of the Auditor General reveals weak and risky financial governance in some of Nepal's local levels, with non-compliance with laws and improper accounting. The report highlights that 219 local levels approved budgets by keeping 7 billion rupees in reserve, contrary to the Local Government Operation Act, 2074. Issues such as manipulated bank reconciliations, un-deposited revenue, inactive internal audit mechanisms, and lack of asset inventory were also identified, indicating financial irregularities.