The Comptroller and Auditor General of India (CAG), Girish Chandra Murmu, on Friday announced the setting up of the Supreme Audit Institution India’s International Centre for Audit of Local Governance (iCAL) in Rajkot, Gujarat.
At the conclusion of the three-day international conference on ‘Strengthening of Grass Roots Democracy and Accountability’, Mr. Murmu said local governments played a pivotal role in shaping the lives of citizens. Effective accounting platforms and audit mechanisms were crucial for ensuring that public resources are utilised efficiently and for the benefit of the community.
“Auditing local governments pose several challenges. The complex nature and diverse operations undertaken by local governments, budgetary constraints, limited trained manpower, compromised data accessibility and integrity, inadequate internal controls, and compliance with regulatory requirements including financial reporting, all heighten the risk of fraud, waste, and mismanagement in local government entities,” he said.
The CAG said local governments often interacted with multiple stakeholders, such as government entities, non-profit organisations, private contractors, leading to complexities in auditing inter-entity transactions and relationships. Addressing these challenges required a combination of specialised expertise, rigorous audit methodologies, and effective communication between auditors and local government officials.
“To effectively navigate the complexities of auditing local governments, we need to build capacity of our auditors as well as the local government employees to enhance their understanding of financial management practices and internal controls. Besides, open communication channels with local government officials can facilitate the audit process, improve data accessibility, and foster cooperation in addressing audit findings. It is to this end, that we have set up iCAL,” he added.
