ANNUAL REPORT 2004 The administrative division headed by the Chairman of the Commission has been looking after the daily administrative activities. The division is also responsible for financial administration works. 3.1.2. Financial Administration To make the financial administration more effective and transparent, the Commission has formulated regulations and set other administrative arrangements. The government funds need to be expended as per the HMG’s rules, and the donor agencies’ grants as per their rules, but both the accounts are required to be audited by the Office of Auditor General. Since this contradiction has given rise to confusion in a number of instances, the Commission has introduced its own financial regulations. In view of its increasing workload, and thereby the obligations to meet expenses of salaries and allowances of officials and other employees, and other daily office overheads, the Commission also has felt the need for enlarging the existing budget of Rs. 7.5 million sanctioned by the government for the fiscal year 2060/61B.S. The Human Rights Commission Act 1997, Section 15 (5), has provided that the Commission’s books of accounts be audited by the Department of Auditor General. Accordingly, the Department of Auditor General has already audited the accounts of general expenditures funded with the HMG, as well as those of foreign aids for the fiscal year 2059/60 B.S. The preliminary audit report, and the Commission’s comments to the Department of Auditor General, as well as final accounts for the fiscal year 2060/61B.S (Auditor General’s Form No. 17) been included in the Annex 7. The Department of Auditor General is yet to complete the final audit of the books of accounts of fiscal year 2060/61B.S. A pressing need for essential equipment and vehicles has been felt, as the Commission is increasing the human rights protection and promotion activities. Annex 6 showcases the assets-in-kind existing with the Commission and its projects. With the assistance of Capacity Development Project of the United Nations Development Program, an integrated financial administration regulation has been enforced in the Commission’s projects. At present, the financial administration unit keeps the accounting of financial transactions of the Commission, by maintaining books of accounts separately for the funds received from the HMG and from donor agencies. Likewise, a bank account has been maintained with Nepal Investment Bank Ltd. for the European Union funded project for establising the Commission’s regional office. The Commission’s bank accounts are operated with joint signatures of the Commission secretary and account chief. The Office of Auditor General audits the Commission’s books of accounts regularly after the end of each fiscal year. The schedules detailing the financial administration are given in the Annex 7. 11