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Governance 04 - Daily Class Notes - UPSC Sankalp Hinglish

The document discusses social audit and the Comptroller and Auditor General of India. Social audit aims to evaluate how effectively the government has discharged its social responsibilities by narrowing the gap between plans and reality. It also discusses the objectives, need and challenges of social auditing. The document also outlines the roles and functions of the Comptroller and Auditor General as outlined in the Indian Constitution.

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27 views

Governance 04 - Daily Class Notes - UPSC Sankalp Hinglish

The document discusses social audit and the Comptroller and Auditor General of India. Social audit aims to evaluate how effectively the government has discharged its social responsibilities by narrowing the gap between plans and reality. It also discusses the objectives, need and challenges of social auditing. The document also outlines the roles and functions of the Comptroller and Auditor General as outlined in the Indian Constitution.

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jakatiupdateclasses
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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DAILY
CLASS NOTES
Governance

Lecture – 04
Social Audit and Comptroller
and auditor general
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Social Audit and Comptroller and auditor general


Meaning of social audit
❖ It is a process and not an event. It is a way of measuring , understanding , reporting and ultimately
improving social and ethical performance of a program.
❖ It looks into the gap between performance and expectations.
❖ Social auditing may be defined as social control over money spent by the government.
❖ The main reason for the push of social audit is the huge disconnect between what the people need, what the
government thinks people need and what is actually being done by the government.
❖ Social audit narrows the gap between vision and reality. It is the process in which people work with the
government to monitor the planning and implementation of schemes and programmes.
❖ Social audit completely depends on transparency and information sharing of relevant information.
❖ The process of evaluation and reporting is similar to financial audit but in terms of its focus it is different
from financial audit as it focuses on understanding the social and ethical impact of a program.
❖ It is a tool of evaluating how effectively the government has discharged its social responsibility.
❖ Social audit aims at strengthening accountability and transparency in implementation of a project or
programme .
❖ It narrows the gap between vision and reality. It is the process in which people work with the government
to monitor the planning and implementation of schemes and programmes.
Objectives of social audit
❖ Assessing the financial gap between needs and resources availability.
❖ Creating awareness among beneficiaries and providers of social services.
❖ Increasing effectiveness and efficiency of a developmental programme.
❖ Scrutiny of various decision makers keeping in view the stakeholder’s interest and priorities.
Need of social auditing
❖ It refers to steps that are taken to ensure that what is being done by the government is actually benefiting the
people.
❖ It is based on the principle that local self -governance should be carried out as much as possible with the
consent and complete understanding of the requirements of people concerned.
❖ Social audit is conducted to look into the aspect of efficiency , effectiveness, outcome , value for money
etc of a program.
Scope of social audit
❖ Social audit is conducted over the lifespan of a scheme and not just at one stage.
❖ It audits:
➢ Process ,output and outcome of a programme.
➢ Planning , implementation, monitoring and evaluation stages.
Relevance of social audit
❖ With a change in paradigm of governance there is also a change in our notion of accountability.
❖ As per modern stakeholders government agencies are responsible not only for maintaining procedural
integrity but also for maintaining efficiency, effectiveness etc.
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❖ Further government agencies are responsible not only for governance but also for various other stakeholders.
Challenges in conducting social audit
❖ Institutionalized mechanisms defer conducting social audits .
❖ Those who are part of social audit teams face intimidation at local level.
❖ Improper training for conducting social audits: People who are responsible for conducting social audits
are not trained properly.
❖ Limited/No access to primary record: They don't even have access to primary records for auditing.
Legislative provision to support social audit
❖ MGNREGA: Section 17 of Mahatma Gandhi National Rural Employment Guarantee Act, (MGNREGA),
2005 mandates social auditing by the panchayat.
❖ Right to Information act, 2005: This act strengthens the mechanism of social audit.
❖ 73rd and 74th constitutional amendment act, 1992 : This act was the first ever reference made to social
audit.
Way forward
❖ Invest in training programs and capacity-building initiatives: for auditors and government officials
involved in social audits.
➢ This training should cover technical aspects such as data analysis, financial auditing, and program
evaluation techniques.
❖ Training should be provided for conducting social auditing to members of gram sabha and NGOs.
❖ Embrace digital tools and technology to streamline the audit process. Develop user-friendly software and
data analytics tools that can assist auditors in data collection, analysis, and reporting.
❖ There should be awareness generation campaigns for social auditing.
❖ Collaborate with universities and research institutions to tap into their technical expertise.
❖ A system should be designed to conduct social auditing involving government officials, members of
panchayats, and members of NGOs.
Comptroller and Auditor General (CAG)
❖ Article 148 to 151 of the Indian Constitution delineate the roles and responsibilities of the Comptroller and
Auditor General (CAG).
❖ According to Article 148(1), there shall exist a CAG (Comptroller and auditor general). appointed by the
President of India.
❖ It's noteworthy that the Constitution explicitly specifies the existence of a solitary CAG, and any move
towards establishing a multi-member body would necessitate an amendment of constitution.
Origin of Comptroller and Auditor General
❖ The roots of the CAG can be traced back to the colonial period, where its role was even more formidable.
❖ During that era, the CAG was involved in the financial process before the withdrawal of money.
❖ In contemporary times, its intervention occurs after the withdrawal of funds, with a focus on verifying
whether the allocated money has been expended for its intended purpose.
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❖ According to B.R. Ambedkar, the CAG holds the distinction of being the most crucial office in this
regard.
Primary functions of the CAG
❖ The primary functions of the CAG revolve around the following key aspects:
➢ Expenditure Verification: It primarily concerns itself with scrutinizing whether the money that has been
withdrawn from public funds has been expended for the designated purpose or not.
➢ Compliance with Limits: The CAG ensures that the funds, both withdrawn and spent, adhere to the
approved limits set by the competent authorities.
➢ Authorization Validation: It validates whether the funds were withdrawn by the authority duly
authorized to do so according to established procedures.
❖ These core functions constitute the constitutional obligations of the CAG, and any deviation from them
would imply a failure to fulfill its constitutionally assigned duties.
❖ Subsequently, the CAG presents its findings and reports to the Public Accounts Committee, a crucial
mechanism for parliamentary oversight.

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