The Aryavarth Express
Agency(New Delhi): During a three-day global summit on “Strengthening of Grassroots Democracy” held in Delhi, the Comptroller and Auditor General of India (CAG), Girish Chandra Murmu, underscored the importance of tailoring audit processes to address the most significant risks, such as fraud, mismanagement, and non-compliance with regulations. Murmu highlighted the critical role of digital technologies in streamlining the collection, analysis, and reporting of data, thereby enhancing the efficiency and effectiveness of audits.
The use of technology facilitates the timely sharing of information, allowing auditors to swiftly address emerging issues and challenges. Murmu stressed the need for fostering transparency and accountability in the operations of local governments, encouraging the implementation of best practices in financial reporting and governance.
Moreover, Murmu advocated for a “Glocal” approach—combining global and local perspectives—to auditing local bodies. This approach entails integrating global standards and practices with the specific needs and characteristics of local governments, taking into account factors such as their size, complexity, and available resources. Understanding the political, social, and economic contexts in which local governments operate is vital for customizing audit procedures and recommendations.
Involving stakeholders is crucial to ensuring that audit findings are pertinent, trustworthy, and practical. Murmu called for institutionalized collaboration between Supreme Audit Institutions (SAIs) and international audit organizations to exchange best practices and experiences, fostering a global community aimed at enhancing local government auditing practices. The conference aims to become an annual gathering to further these objectives.
Murmu also emphasized the necessity of building the capacity of both auditors and local government staff to improve their understanding of financial management practices and internal controls. Open communication with local government officials can simplify the audit process, enhance data availability, and promote cooperative efforts to address audit findings. To support this goal, SAI India has established the International Centre for Audit of Local Governance in Rajkot.
The summit featured insightful presentations from participating SAIs, highlighting the diverse and common challenges faced in auditing local government accountability frameworks. Discussions focused on strengthening controls and procedures, ensuring asset control, complying with relevant regulations, and providing high-quality, timely reports to improve performance and facilitate improvements.
The need for comprehensive capacity building to enhance audit operations and maintain close relationships with audited entities was emphasized, along with the importance of improving internal controls and administrative-legal frameworks. The conference underscored the significance of adopting a holistic approach to local governance, encompassing planning, budgeting, financial reporting, and IT infrastructure development.
The collaborative efforts discussed during the conference are expected to significantly improve transparency, accountability, and good governance at the grassroots level, with the insights and connections formed poised to drive positive changes in local governance globally.