Internal Control System Guidelines for Local Governments

Synopsis:

Mera Maan and The World Bank Nepal collaborated to develop a comprehensive module on ‘Internal Control System Guidelines for Local Governments’ under the Integrated Public Financial Management Reform (IPFRM) program. The module aimed to enhance the understanding of managerial and financial internal controls at the local level, empower local government officials to apply the five internal control elements (control environment, risk assessment, control activities, information and communication, and monitoring and evaluation) to their work, and facilitate self-assessment for improvement.

Narrative of the Project Description:

Background:

The initiative was a part of the broader IPFRM program, which sought to strengthen public financial management practices at the local government level in Nepal. Effective internal controls are crucial for ensuring transparency, accountability, and efficiency in financial operations and governance.

Objectives:

– Orient local level governments on the significance of having managerial and financial internal controls.
– Equip participants with knowledge and skills to identify and apply the five internal control elements in their work.
– Facilitate self-assessment of the current efficacy of existing internal controls.
– Develop action plans for improving internal control mechanisms.

Project Impact:

The module comprised two core documents: the Trainer’s Manual and the Participant Handbook. The Trainer’s Manual provided detailed guidance for trainers, including session plans, PowerPoint presentations, assessment tools, and evaluation forms. It served as a comprehensive resource for conducting the 2-day training. The Participant Handbook was a stand-alone document distributed to the training participants, containing handouts, activities, and an action plan. Through this module, Mera Maan and The World Bank Nepal strengthened local governments’ capacity in internal control implementation, leading to improved financial management practices, enhanced transparency, and better governance at the local level. The knowledge and tools provided in the module empowered participants to take proactive steps towards building effective internal control systems, thereby contributing to the overall public financial management reform in Nepal.