18/12/2018 - Governance

KEY POINTS

A social audit is a way of measuring, understanding, reporting and improving an organization’s social and ethical performance. It values the voice of stakeholders, including marginalized/poor groups and for strengthening accountability and transparency in local bodies.

Inherent flaws in Social Audit Units (SAU)

·        The governing bodies of most SAUs are not independent.

·        Some SAUs have to obtain sanction from the implementation agency before spending funds.

·        More than half the States have not followed the open process specified in the standards for the appointment of the SAU’s director.

·        Some States have conducted very few audits and a few have not conducted any. Several do not have adequate staff to cover all the panchayats even once a year.

·        The action taken by the State governments in response to the social audit findings has been extremely poor; adequate disciplinary action against people responsible for the irregularities has also not been taken.

·        According to NSSO, for the period 2016-17 and 2017-18, only 13 SAUs registered grievances and/or detected irregularities, only 7% of the money has been recovered and only 14% of the grievances have been redressed.

Importance of SAU

(a) Trains the community on participatory local planning.

(b) Encourages local democracy.

(c) Encourages community participation.

(d) Benefits disadvantaged groups.

(e) Promotes collective decision making and sharing responsibilities.

(f) Develops human resources and social capital

To become an important pillar in Good Governance (SAU)

·        Social audits of the NFSA have failed to take off due to lack of funds. Like the Rural Development Ministry, the Ministry of Consumer Affairs, Food, and Public Distribution should give funds to the SAUs and ask them to facilitate the social audits of the NFSA.

·        Social audit units should have an independent governing body and adequate staff. Rules must be framed so that implementation agencies are mandated to play a supportive role in the social audit process.

·        Real-time management information system should track the calendar, the social audit findings and the action is taken, and reports on these should be made publicly available.

·        CAG as an institution could partner with local citizens and state audit societies to train them, build capacities and issue advisories on framing of guidelines, developing criteria, methodology and reporting for audit.

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