(1) Inclusion in a level budget and program in accordance with this Act; When any plan or program is implemented from another level, as the expenditure unit of the level where the funds have been allocated, the account shall be kept as prescribed by the prevailing law and internal and final audit shall be conducted. (2) According to subsection (1), the level implementing the plan or program shall prepare and verify the financial statement and send it to the level where the initial allocation was made.
(3) Any plan or program that includes foreign resources under the conditional grant from the Government of Nepal to be implemented by the provincial and local levels, the source of the budget and the method of payment must also be disclosed when transferring funds. The amount of foreign resources received in this way shall be implemented by the respective provinces and local levels in the annual budget and program.
(4) When the province or local level mobilizes the aid according to sub-section (3), it shall submit a report to the relevant ministry of the Government of Nepal, the relevant inquiry agency and the relevant Treasury and Accounts Comptroller Office and the Provincial Accounts Comptroller Office in the format specified in the agreement.
(5) If due to non-submission of the report according to sub-section (4) the amount spent cannot be received, the equivalent amount will be deducted from the financial equalization grant to be transferred to the respective province and local level in the next financial year and reconciled.