Bhutan: Strengthening Audit Resource Management

Sovereign Project | 44246-012

Summary

The TA builds on the work of the ongoing ADB TA 7032 on Strengthening Public Financial Management Project, which has a component that focuses on strengthening audit resource management of the RAA. Among the activities supported by this TA is assisting the RAA in acquiring and implementing IT systems, including auditing software, to enhance its operational efficiencies and to improve in-house training. By strengthening the operational efficiency and effectiveness of the RAA through a strategic IT intervention, the TA will seek to fill an important accountability gap in Bhutan's governance and operating environment. An effective external audit institution is essential to transparency and accountability. Due to Bhutan's rapid growth amidst its combined pursuit of democratization and decentralization, an audit gap is growing wider and faster than what the RAA can fill.

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Project Name Strengthening Audit Resource Management
Project Number 44246-012
Country Bhutan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7723-BHU: Strengthening Audit Resource Management
Technical Assistance Special Fund US$ 450,000.00
TA 7723-BHU: Strengthening Audit Resource Management (Supplementary)
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Public sector management - Public administration - Public expenditure and fiscal management
Gender Equity and Mainstreaming No gender elements
Description The TA builds on the work of the ongoing ADB TA 7032 on Strengthening Public Financial Management Project, which has a component that focuses on strengthening audit resource management of the RAA. Among the activities supported by this TA is assisting the RAA in acquiring and implementing IT systems, including auditing software, to enhance its operational efficiencies and to improve in-house training. By strengthening the operational efficiency and effectiveness of the RAA through a strategic IT intervention, the TA will seek to fill an important accountability gap in Bhutan's governance and operating environment. An effective external audit institution is essential to transparency and accountability. Due to Bhutan's rapid growth amidst its combined pursuit of democratization and decentralization, an audit gap is growing wider and faster than what the RAA can fill. In this regard, ADB assistance has been requested to close the gap and help ensure the country continues its steady progress to meeting its bold developmental goals.
Project Rationale and Linkage to Country/Regional Strategy The TA supports Bhutan's 10th Five Year Plan (2008-2013), specifically the plan's emphasis on enhancing transparency and accountability of the countrys institutions as part of the Government's economic development strategy. In keeping with the plan's focus on governance and decentralization, the strengthening of the RAA and other accountability agencies is considered by the Government to be crucial. At the same time, the TA expressly supports the Country Partnership Strategy (CPS) for Bhutan, notably its 3rd pillar on good governance. The rapid growth of Bhutan's economy, the expansion of the government's expenditures and its continuing fiscal decentralization all require that the RAA scale up its capacity to ensure that government's performance is compliant with its accountability criteria.
Impact Improved public financial management in Bhutan
Project Outcome
Description of Outcome Increased accountability and transparency of public accounts
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Reengineered RAA business processes and audit procedures/Program Management

RAA auditors and relevant staff trained in new audit resource management system

Customized ARMIS designed and installed in RAA

Status of Implementation Progress (Outputs, Activities, and Issues)

As of November 2013, the consulting firm has successfully completed all equipment configuration as well as deployed ARMIS for pilot testing.

An introductory training and User Manual for three of the five modules have also been completed.

In July 2014, the RAA succesfully launched ARMS country-wide

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design tbd
During Project Implementation tbd
Business Opportunities
Consulting Services An international consulting firm has been contracted to implement the TA. The selected firm has fielded a senior systems analyst and programming specialist who will serve as the team leader of the project (international, 10 person-months). The team leader is being assisted by a public sector audit specialist (international, 1 person-month) in the conduct of a business process review and systems design for the RAA. The team leader is also being assisted by a programming specialist (national, 10 person-months) who will provide technical support to the RAA team in the programming of the ARMIS.
Responsible ADB Officer Takuya Hoshino
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Royal Audit Authority (RAA)Kawangjangsa, P.O. Box 191, Thimphu
Bhutan
Timetable
Concept Clearance 18 Oct 2010
Fact Finding 02 Nov 2010 to 05 Nov 2010
MRM -
Approval 13 Dec 2010
Last Review Mission -
Last PDS Update 29 Sep 2014

TA 7723-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2010 30 Mar 2011 30 Mar 2011 31 Dec 2013 31 Jul 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
675,000.00 0.00 75,000.00 0.00 0.00 0.00 750,000.00 13 Dec 2010 638,673.92

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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