Sign In
Learn bits
Economy
Mahesh

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

More Related Current Affairs View All

14 Aug

ABC of Sterilisation

'The Supreme Court has directed Delhi, Noida, Gurgaon, and Ghaziabad authorities to urgently round up and shift stray dogs to shelters, stressing the need to protect children from

Read More

14 Aug

Post and pre-matric scholarships

'The  Union government is considering revising the parental income limit for eligibility in availing post and pre-matric scholarships administered to students from marginalise

Read More

13 Aug

Working of satellite internet

'Satellite internet is revolutionizing how we connect, extending high-speed access to virtually every corner of the globe, regardless of location.' Imagine getting online from t

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps