Assam's Social Audit Unit (SAU), set up to ensure transparency and accountability in rural development schemes, has faced severe operational and governance challenges, according to a report of the Comptroller and A uditor General of India (CAG).

The CAG report on 'Local Bodies' for the period ending March 2024 highlighted that the registration of SAU expired long back due to infrequent governing body meetings that hindered budget approvals and annual account certifications.

"The registration of the SAU under the Societies Act remained invalid for almost five years, since December 2019. Gross shortfall in holding of governing body meetings implies the deficiency in monitoring at the government level," it added.

The CAG recommended that governing body meetings should be held at stipulated intervals to ensure approval of the budget and annual accounts of SAU, and to facilitate effective monitoring of the activities.

It also pointed out that the manpower policy of SAU is yet to be firmed up, even after the same had been proposed in August 2017 and reviewed by the Finance Department.

"The SAU operates with a significant manpower shortage [43% overall vacancy], particularly among key field personnel, impacting its ability to meet social audit targets and conduct timely audits," it added.

The CAG suggested that the manpower policy should be finalised and that initiatives should be taken for the recruitment of resource persons in requisite numbers. Besides, the Code of Ethics were not introduced, though it is required under the Auditing Standards of Social Audit.

It said that the Code of Ethics should be developed and deployed by the SAU for social audit facilitators.

"The State Employment Guarantee Council [SEGC] at the State level had not monitored the action taken by the State government on social audit reports and action-taken reports. SAU did not submit quarterly reports in the format specified by the Ministry of Rural Development to the principal accountant general/accountant general," it said.

The impact of the social audit is diluted by a deficient follow-up mechanism, like insufficient public hearings at the block and district level, poor recovery of amounts objected to in social audit reports, the report said.

It recommended strengthening of follow-up actions on social audit reports through public hearings at all levels.

"Some village panchayats have not provided records to social audit teams, indicating a lack of sensitisation on social audit among panchayati raj institutions," it added.

Furthermore, there is a critical lack of follow-up on audit observations, evidenced by a less than 4% recovery rate of misappropriated funds, weak state-level monitoring and ineffective public awareness campaigns, the CAG said.

SAU was first registered in December 2016 for the functioning of the MGNREGS Audit of Scheme Rules 2011. It has an independent director and is governed by a governing body, headed by the chief secretary.