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19/07/24 17:34 PM IST

International Centre for Audit of Local Governance

In News
  • Comptroller and Auditor General (CAG) of India Girish Chandra Murmu inaugurated the International Centre for Audit of Local Governance (iCAL) in Rajkot recently.
About iCAL
  • According to the CAG’s note, iCAL will be a collaborative platform for policymakers, administrators and auditors linked with local governments.
  • It will enhance the local government auditors’ independence to ensure improved financial performance assessment, service delivery, and data reporting.
  • It will also serve as a centre of excellence for capacity building of local government auditors.
  • Its primary aim is to empower auditors, executives, and elected representatives of local governments to effectively fulfil their roles through training and leadership development initiatives.
  • iCAL will also act as a knowledge centre and thinktank for addressing governance issues at grassroot levels across nations through interactive workshops, knowledge sharing sessions, peer exchanges etc.”
  • Dinesh Patil, principal accountant general (Audit-I), Gujarat, has been given the additional charge of director general of iCAL.
Auditing of Local Bodies
  • India has a three-tier governance structure comprising the Union or Central government, state governments, and local bodies at urban and rural levels.
  • Panchayati Raj Institutes (PRIs) like village panchayats, taluka (block) panchayats and district panchayats have been set up for self-governance in rural areas, with Urban Local Bodies such as municipal corporations and municipalities in urban areas.
  • Local governments are the most important link in the governance spectrum
  • It is at this level that the aspirations, concerns and needs of the people are most acutely felt and addressed. It is here that local level planning of developmental programs is undertaken.
  • While keeping accounts is the responsibility of the concerned local body, many state governments have an Examiner of Local Fund Accounts (ELFA) or Director of Local Fund Accounts (DLFA) for auditing their accounts.
  • In Gujarat, for instance, the ELFA is an autonomous office functioning under the aegis of the finance department.
  • ELFA audits the utilisation of funds granted by the state government to local bodies. Other institutions, such as universities, also audit their performance.
  • The CAG, on the other hand, conducts audits of all funds (including the state and Central governments).
  • It also exercises control and supervision over the proper maintenance of accounts and auditing for all three levels of PRIs/ULBs.
  • Under its technical guidance and support initiative, CAG also advises and supports ELFA or DLFA and thereby supplements the latter’s work.
Need of such Centre
  • Murmu said during his visit to Rajkot in January that there are around 2.5 lakh panchayats and 8,000 urban local bodies (ULBs) in India.
  • 40 countries have their respective supreme audit institutions (SAIs) conducting audits of local bodies and there is a need to promote global good practices.
  • There must be institutionalised collaboration among SAIs and with international audit organisations to share best practices, exchange knowledge and experiences of glocal auditors.
  • A collaborative platform could aid the improvement of local government audit practices.
Source- Indian Express

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