Kathmandu. The Institute of Chartered Accountants of Nepal and the National Cooperative Regulatory Authority (NCRA) signed a Memorandum of Understanding (MoU) to strengthen the regulation, monitoring and supervision of cooperatives, especially those involved in saving and credit transactions.
ICAN Chairman Nil Bahadur Saru Magar and NRA Chairman Dr. Khagaraj Sharma signed the MoU. Member (Cooperative Expert), Dr. Ramesh Chaulagain, Member, Mahesh Khanal and Executive Director, Dr. Shesh Narayan Poudel was also present.
From ICAN, Vice President Ananda Raj Sharma Wagle, Executive Director CA Bimal Dangol, Administration Director Binod Prasad Neupane, Technical Director CA Kiran Kumar Khatri and Deputy Director Santosh Bista were present.
This has been done with the objective of making the regulatory and supervisory mechanism of cooperatives more effective in line with the Cooperative Act, 2074 and the Nepal Chartered Accountants Act, 2053. The collaboration will cover areas such as prudential audit, development of regulatory standards, technical support for monitoring and supervision, and enforcement of Nepali Financial Reporting Standards and other financial standards.
The main objectives of the MoU are to maintain coordination between NEA and ICANN to prepare roster for prudential audit of cooperatives doing the main transaction of savings and loan, to help in formulating various standards, bylaws, guidelines etc. to make the regulatory audit of the authority effective and to cooperate in the regulation, monitoring and supervision of the cooperatives.
On the occasion, Chairman of the NRA emphasized that this collaboration would strengthen the capacity of the Authority to safeguard the cooperative sector and protect the interest of its members and depositors. He said that effective regulation of cooperatives is important to maintain financial stability in the economy.
Likewise, ICAN President said that ICAN is committed to ensuring transparency and accountability in the cooperative sector, and to contribute its technical expertise in auditing and financial reporting standards to ensure transparency and accountability in the cooperative sector, and to assist in the preparation of roster to carry out pudential audits as stipulated in the Cooperative Act. “This partnership is in line with ACAN’s role in promoting good governance and fiscal discipline in Nepal’s economy,” he added.
This MoU is considered important for both the organizations. It is expected to contribute positively to Nepal’s financial system and economic development, reduce irregularities in the cooperative sector, increase trust, and widen the scope of professional business of its members.
