The Comptroller and Auditor General (CAG) of India has identified several operational and governance deficiencies in Assam’s Social Audit Unit (SAU), highlighting issues ranging from an expired registration and acute manpower shortages to inadequate follow-up mechanisms in the conduct of social audits of rural development programmes.
In its report on Local Bodies for the period ending March 2024, the CAG noted that the registration of the Social Audit Unit under the Societies Act remained invalid for nearly five years from December 2019 because governing body meetings were not held at the prescribed intervals.
According to the report, irregular meetings of the governing body affected the approval of budgets and certification of annual accounts, pointing to shortcomings in government-level oversight and monitoring.
The audit watchdog also drew attention to a 43 per cent vacancy rate in the organisation, particularly among crucial field personnel. It observed that the shortage of manpower had adversely affected the unit’s ability to achieve social audit targets and carry out audits within stipulated timelines.
The report stated that a manpower policy proposed in August 2017 is yet to be finalised despite being examined by the Finance Department. The CAG recommended the early finalisation of the policy and the recruitment of additional resource persons to strengthen the functioning of the unit.
It further noted that the Code of Ethics mandated under Social Audit Standards had not been introduced. The audit body recommended that the SAU formulate and implement such a code for social audit facilitators.
The CAG also highlighted weaknesses in monitoring the implementation of social audit findings. It observed that the State Employment Guarantee Council had not adequately reviewed action taken on social audit reports and that the SAU had failed to submit quarterly reports in the format prescribed by the Ministry of Rural Development.
According to the report, the effectiveness of social audits was also hampered by inadequate conduct of public hearings, low recovery of funds identified in audit reports and insufficient awareness among Panchayati Raj Institutions regarding audit procedures.
The report noted that less than four per cent of the misappropriated amounts detected through social audits had been recovered, indicating weak follow-up and enforcement mechanisms.
To improve transparency and accountability in the implementation of rural development schemes, the CAG recommended regular meetings of the governing body, strengthening of monitoring mechanisms, timely conduct of public hearings, improved staffing and greater awareness among local bodies.
The Social Audit Unit was registered in December 2016 to conduct audits under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and functions under a governing body headed by the Chief Secretary of Assam.
