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CAG Calls for Stronger Local Audit Systems to Boost Governance

Comptroller and Auditor General Sanjay Murthy has called for reinforcing the institutional framework and professional capacity of Primary Auditing Institutions for local governments. This appeal followed a three-day national workshop in Hyderabad that brought together audit directors from 23 states to discuss challenges and best practices. The workshop focused on issues like adopting technology in audits and strengthening follow-up mechanisms. Concurrently, Murthy released a publication providing a consolidated, audited overview of state finances from 2014-15 to 2023-24 for policymakers and researchers.

Key Points: CAG Urges Strengthening of Local Government Audit Frameworks

  • Strengthen local audit frameworks
  • Build professional audit capacity
  • Adopt technology-enabled audit systems
  • Improve audit planning and reporting
2 min read

CAG urges strengthening of local audit frameworks

CAG Sanjay Murthy advocates for stronger institutional frameworks and capacity building for local fund audits following a national workshop in Hyderabad.

"challenges and best practices highlighted during the workshop would be taken into account to improve the system - Sanjay Murthy"

New Delhi, January 21

Comptroller and Auditor General Sanjay Murthy has called for strengthening the institutional framework, professional capacity building, and audit practices of Primary Auditing Institutions responsible for local governments.

This appeal was made at the conclusion of a three-day national workshop for Directorates of Local Fund Audit (DLFAs) and State Audit Departments in Hyderabad.

The workshop, organised by CIARD-NIRDPR in collaboration with iCAL, focused on challenges in local fund audits, PAI maturity assessments, and best practices in audit planning and reporting.

Directors of Local Fund Audit from various states discussed key issues, including adopting technology-enabled audit systems and strengthening follow-up mechanisms.

The workshop was attended by 41 officers from 23 states, along with senior officials from the Ministry of Panchayati Raj and the Office of the CAG.

The Comptroller and Auditor General emphasised that the challenges and best practices highlighted during the workshop would be taken into account to improve the system.

Earlier in December, Sanjay Murthy released the second edition of the Publication on State Finances 2023-24 here today. Building on the first edition (2022-23), this publication presents a consolidated, audited overview of the finances of all 28 States, enabling inter-State and inter-temporal analysis over a 10-year period from 2014-15 to 2023-24.

Unlike the annual Finance and Appropriation Accounts and Audit Reports, which are presented to State Legislatures, this publication brings together comparable audited fiscal data across States in a single, accessible volume, aimed at assisting policymakers, public financial managers, researchers, academia, and other stakeholders.

- ANI

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Reader Comments

P
Priya S
Finally some focus on local governance accountability. The consolidated publication on State finances is a great tool for transparency. As a researcher, having comparable audited data across states for a decade is invaluable. More power to CAG!
R
Robert G
Workshops are good, but real change needs political will. Will state governments actually empower these local audit bodies to act against powerful local politicians? That's the real question. The framework is only as strong as its enforcement.
A
Anjali F
Capacity building is key. Many auditors at the district and block level lack proper training and tools. Hope this initiative includes practical hands-on sessions and not just theoretical workshops. The ₹15 lakh crore for rural local bodies needs proper auditing.
K
Karthik V
Good move. Technology adoption in audit can reduce delays and human errors. But they must ensure data security and train staff properly. Also, audit reports should be made available in local languages for true public scrutiny at the gram panchayat level.
M
Michael C
Respectfully, while the intent is noble, we've seen many such announcements before. The proof will be in a measurable reduction in audit pendency and an increase in actionable findings that lead to recoveries. Let's track the outcomes, not just the workshops.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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