CAG Report Highlights Governance and Operational Deficiencies in Assam Social Audit Unit

The Comptroller and Auditor General (CAG) of India has identified multiple governance, administrative, and operational shortcomings in the functioning of Assam's Social Audit Unit (SAU), which is responsible for promoting transparency and accountability in the implementation of rural development programmes.

According to the CAG's report on Local Bodies for the period ending March 2024, the Social Audit Unit experienced significant compliance lapses, including the failure to maintain valid registration under the Societies Act for an extended period. The report noted that the registration remained invalid for nearly five years from December 2019, raising concerns regarding institutional governance and regulatory compliance.

Governance and Monitoring Concerns

The audit observed that governing body meetings were not conducted at the prescribed intervals. The inadequate frequency of such meetings adversely affected key administrative functions, including approval of budgets, certification of annual accounts, and overall monitoring of the organisation's activities.

The CAG stated that the absence of regular governing body oversight reflected deficiencies in monitoring mechanisms at the government level. To address these issues, the audit authority recommended that governing body meetings be conducted within stipulated timelines to strengthen governance, facilitate timely approvals, and improve institutional accountability.

Pending Manpower Policy and Staffing Challenges

The report further highlighted that the Social Audit Unit continues to operate without a finalized manpower policy despite proposals having been initiated in August 2017 and subsequently reviewed by the Finance Department. The absence of a definitive manpower framework has reportedly contributed to staffing shortages and operational inefficiencies.

The audit noted that workforce constraints have affected the unit's ability to achieve audit coverage targets and effectively discharge its social audit responsibilities.

Additional Institutional Weaknesses

The CAG also pointed to deficiencies in internal governance practices, including the absence of a formally adopted Code of Ethics. Such gaps may impact accountability standards and governance controls within the organisation.

Further, the report highlighted weak follow-up mechanisms on audit findings and recommendations. Recovery of misappropriated or irregularly utilized funds remained limited, indicating challenges in enforcing corrective action and ensuring accountability after audit observations are reported.