International Centre for Audit of Local Governance (iCAL)
Source: Indian Express
GS II: Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential; citizens charters, transparency & accountability and institutional and other measures
Overview
- News in Brief
- International Centre for Audit of Local Governance
Why in the News?
International Centre for Audit of Local Governance (iCAL), a pioneering initiative by SAI India, was officially inaugurated in Rajkot,
News in Brief
- The inauguration marks a significant milestone in enhancing the audit capacity and independence of Local Government auditors, promoting improved financial performance assessment, service delivery, and data reporting.
International Centre for Audit of Local Governance
- The institute, is a first in the country as per the CAG office.
- It aims to set global standards for auditing local governance bodies.
- iCAL’s primary objectives are to develop and enhance
- Standards for Local Government Audits
- Strengthen data collection and reporting
- Empower auditors, executives, and elected representatives through comprehensive training programs and leadership development initiatives.
Local bodies audited in India
- Conversely, the CAG conducts audits of all funds (including the state and Central governments).
- 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.
- ELFA audits the utilisation of funds granted by the state government to local bodies.
Need for iCAL
- 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.
- There is a need to promote global good practices.
- A lot of funds are flowing to local bodies now and there is a need for proper auditing of these institutions.
- There have long been concerns about the lack of funding available to local bodies, and its utilisation.
- A 2022 report from the Reserve Bank of India (RBI) found
- Most municipalities only prepare budgets and review actuals against budgeted plans
- Do not use their audited financial statements for balance sheet and cash flow management, resulting in significant inefficiencies.
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