The FRMAI is an instrument that seeks to provide a structured and consistent approach to measure and compare the level of compliances in areas of institutional, organizational and financial management amongst the audited agencies. As of June 2014, there are over 1,445 agencies/accounts that require auditing including 10 ministries, 20 Dzongkhags, 205 Gewogs, several government agencies, corporations and financial institutions, Civil Society Organizations and Religious Organizations.

The quality of financial resources management performance will be evaluated on nine elements, which include Institutional and Management System, Budgetary Control, Receipts Management & Control, Expenditure Control, Property Management System, Loans & Investment Management, Delivery of Services, Procurement Management and Contribution to GNH Goals.

The FRMAI provides scores and ratings on how the ministries, departments and agencies perform in those financial resources management elements. It outlines the main indicators and sub-indicators to be considered for assessing each element and describes the scoring and rating system relating to the elements of the financial management being assessed.

In applying the FRMAI, the auditor should consider the objectives of assessment and exercise professional judgement. There are certain indicators, which may also not be applicable to the audited agencies across the board. Hence their financial resources management performance should be assessed to the extent applicable to them. It is important that the auditors use professional judgement wisely in giving reasonable scores on the assessment.