CAG flags five-year lapse in registration, 43% staff shortage at Assam Social Audit Unit

The Comptroller and Auditor General (CAG) of India has flagged several operational and governance shortcomings in Assam's Social Audit Unit (SAU), including an expired registration, significant manpower shortages and weak follow-up mechanisms in the conduct of social audits of rural development schemes.

In its report on Local Bodies for the period ending March 2024, the CAG noted that the SAU's registration under the Societies Act remained invalid for nearly five years from December 2019 due to the failure to hold governing body meetings at the prescribed intervals.

The audit report observed that infrequent meetings of the governing body hindered approval of budgets and certification of annual accounts, indicating deficiencies in government-level monitoring.

The CAG also pointed to a 43% vacancy rate within the organisation, particularly among key field personnel, which it said adversely affected the unit's ability to meet social audit targets and conduct timely audits.

According to the report, a manpower policy proposed in August 2017 is yet to be finalised despite being reviewed by the Finance Department. The audit watchdog recommended immediate recruitment of resource persons and finalisation of the policy.

The report further noted that the Code of Ethics required under Social Audit Standards had not been introduced. It recommended that the SAU develop and implement such a code for social audit facilitators.

The CAG also highlighted deficiencies in the monitoring of social audit findings. It said 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.

The effectiveness of social audits was also undermined by inadequate public hearings, poor recovery of amounts flagged in audit reports and weak awareness among Panchayati Raj Institutions regarding audit procedures, the report said.

The CAG noted that recovery of misappropriated funds identified through social audits remained below 4%, reflecting weak follow-up and enforcement mechanisms.

The audit report recommended regular governing body meetings, strengthening of monitoring systems, timely public hearings, improved staffing and greater awareness among local bodies to enhance transparency and accountability in the implementation of rural development schemes.

The Social Audit Unit was registered in December 2016 to conduct audits under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and is governed by a body headed by the Chief Secretary of Assam.