The Royal Audit Authority (RAA) has adopted a results-oriented Annual Operational Plan (AOP) for 2026-2027, placing stronger emphasis on measurable performance, accountability, digital transformation, institutional capacity and the quality and impact of public-sector audits.
The AOP is the principal annual planning instrument for translating the RAA’s Strategic Plan 2025-2030 into concrete activities, outputs, responsibilities and measurable targets. It is designed not merely as a schedule of activities but as a management framework linking annual priorities with performance indicators, resources, implementation timelines, risks and evidence of achievement.
The AOP represents the second year of implementation of the Authority’s five-year Strategic Plan.
“The AOP is therefore both a planning instrument and a management tool. Its effective implementation and regular use will enable the RAA to maintain strategic focus, strengthen accountability for results, support evidence-based management decisions, and promote continuous learning and improvement,” Auditor General, Jamtsho said.
The plan seeks to strengthen the quality, relevance and impact of audit and assurance services while advancing institutional capacity, digital transformation, people development, organisational culture and stakeholder engagement.
“The AOP moves beyond being a compilation of activities,” the plan states. It establishes a clear linkage between annual priorities, expected outputs, performance indicators, responsible divisions, implementation timelines, resources, risks and evidence of achievement.
The AOP sets specific performance milestones intended to provide a clearer measure of institutional progress. The proportion of unqualified audit reports, which stood at 56.57 percent in the 2024-2025 baseline, is targeted to increase to 60 percent in 2026-2027, with a longer-term target of 75 percent by 2029-2030.
The RAA also aims to increase implementation of performance, financial and compliance audit recommendations within prescribed timeframes from a baseline of 57 percent to 65 percent during the current financial year, with the longer-term target set at 80 percent.
The plan defines the prescribed timeframe as three months for financial and compliance audit recommendations and 12 months for performance audit recommendations. The Transparency Index score, which stood at 72, is targeted to remain at 72 during 2026-2027 before increasing to 73 by 2029-2030. Similarly, expenditure compliance with laws and rules is targeted to rise from 94.86 percent to 95 percent during the financial year and eventually reach 97 percent.
The RAA also intends to increase the proportion of audit entities covered annually through financial and compliance audits from 94.4 percent to 97 percent in 2026-2027, with the longer-term objective of reaching full coverage.
The Authority aims to publish its Annual Audit Report by the second quarter of the financial year and has set a target of 100 percent compliance with the prescribed timeframe for submission of audit action-taken reports.
The quarterly management review will assess progress against milestones, resource utilisation, risks and dependencies and delayed activities. Repeated or significant underperformance is expected to be escalated to the appropriate management level.
The AOP introduces a performance-rating system under which activities and indicators will be classified as green, amber, red or not rated. Green indicates that an activity is on track or achieved and requires no material corrective action. Amber indicates some slippage, emerging risk or partial achievement requiring management attention. Red denotes significant delay, underachievement or material risk requiring immediate management intervention. “Not Rated” will apply where sufficient data or evidence is not yet available.
The RAA has also stressed the importance of reliable evidence in assessing performance. Acceptable evidence may include approved policies and strategies, completed audit products, quality-assurance records, training and competency records, technology system releases, dashboards, meeting minutes, stakeholder surveys, financial records and other official documentation demonstrating completion and results.
Risk management is similarly integrated into the annual planning process. Risks arising from resource constraints, procurement delays, inter-divisional dependencies, data availability, technology requirements or changing priorities are expected to be identified, assessed and monitored throughout the year.
Auditor General Jamtsho called for collective commitment to ensure the plan delivers tangible results. “I urge all divisions and responsible officials to demonstrate the commitment, collaboration and ownership necessary for the successful implementation of this Plan,” he said.
The AOP also provides for an annual assessment covering completed activities, achievement against milestones, institutional results, delayed activities, resource implications, risks, lessons learned and priorities for the following year.
The RAA said effective implementation of the plan will be essential to strengthening public-sector performance, financial integrity and accountability as it advances towards the objectives of its Strategic Plan 2025-2030.
“The AOP is consequently not only a plan of activities for the financial year; it is a management commitment to translate strategy into measurable results and sustained public value,” the document states.
Tashi Namgyal, Thimphu
