Key Findings of the CAG Report
A recent report by the Comptroller and Auditor General of India (CAG) on 'Local Bodies' for the period ending March 2024 has highlighted severe operational and governance challenges in Assam's Social Audit Unit (SAU). The SAU was established to ensure transparency and accountability in rural development schemes, particularly the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
The CAG report revealed that the registration of the SAU under the Societies Act had been invalid for almost five years, since December 2019. This was due to infrequent governing body meetings, which hindered budget approvals and annual account certifications. The report stated, "Gross shortfall in holding of governing body meetings implies the deficiency in monitoring at the government level."
Manpower Shortage and Policy Gaps
The report also pointed out that the manpower policy of SAU, proposed in August 2017 and reviewed by the Finance Department, has yet to be finalized. The SAU operates with a significant manpower shortage of 43% overall vacancy, particularly among key field personnel. This shortage impacts its ability to meet social audit targets and conduct timely audits. The CAG suggested that the manpower policy should be finalized and recruitment of resource persons should be initiated.
Additionally, the Code of Ethics required under the Auditing Standards of Social Audit has not been introduced. The CAG recommended that the SAU develop and deploy a Code of Ethics for social audit facilitators.
Weak Follow-Up and Monitoring
The State Employment Guarantee Council (SEGC) at the state level had not monitored the action taken by the state government on social audit reports and action-taken reports. The SAU also failed to submit quarterly reports in the format specified by the Ministry of Rural Development to the principal accountant general/accountant general.
The impact of social audits is diluted by a deficient follow-up mechanism, including insufficient public hearings at the block and district level and poor recovery of amounts objected to in social audit reports. The CAG reported a less than 4% recovery rate of misappropriated funds, weak state-level monitoring, and ineffective public awareness campaigns.
Lack of Cooperation from Panchayats
Some village panchayats have not provided records to social audit teams, indicating a lack of sensitisation on social audit among panchayati raj institutions. The CAG recommended strengthening follow-up actions on social audit reports through public hearings at all levels.
Background of SAU
The SAU was first registered in December 2016 for the functioning of the MGNREGS Audit of Scheme Rules 2011. It has an independent director and is governed by a governing body headed by the chief secretary.
FAQ
What is the Social Audit Unit (SAU) in Assam?
The SAU is a body set up to ensure transparency and accountability in rural development schemes, particularly MGNREGS, by conducting social audits.
What were the key findings of the CAG report on SAU?
The report found that SAU's registration was invalid for nearly five years, there was a 43% manpower shortage, governing body meetings were infrequent, and follow-up on audit observations was weak with less than 4% recovery of misappropriated funds.
What recommendations did the CAG make?
The CAG recommended holding regular governing body meetings, finalizing the manpower policy, developing a Code of Ethics, strengthening follow-up mechanisms, and improving public hearings.
Source: www.thehindu.com