THE Comptroller and Auditor General of India (CAG) partnered with the CA Institute to develop a set of online courses aimed at building government accounting skills among rural youth and preparing a cadre of chartered accountants whose services can be used by local governments to maintain comprehensive accounts , said GC Murmu, CAG of India. The online courses are mainly aimed at students with a level 12 and wishing to improve their skills in the field of government accounting.
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The CAG, which is India’s Supreme Audit Institution (SAI), also seeks to harness the power of data analytics, artificial intelligence and digital platforms to improve effectiveness and efficiency of its local government audit processes. “We started in a limited way and now have data analysis centers. We hired outside professionals. We are now cleaning the data. Until data is cleaned and standardized, these emerging technologies cannot be fully implemented,” he said.
The data analysis approach will be easily extended to urban local bodies and it is also possible to do so at the rural local government level (in Zila Parish), but perhaps not at the village level, he said. -he declares.
Asked how quickly CAG would seek to accelerate the use of analytics and AI, Murmu responded as quickly as possible. “It all depends on how quickly we can produce accounts for rural local authorities. Analyzes can be run quickly,” he said.
Reconciliation with ICAI
On the recent tie-up with ICAI, Murmu said that as the youth acquire skills in government accounting and obtain degrees, they will also have ample employment opportunities outside. “Under the GST regime, they can also help small businesses complete their accounts. We will improve the courses over time. This is a parallel skill development and accounting skills mission,” Murmu said after inaugurating an international conference on strengthening grassroots democracy on Wednesday.
Over the past two years, the CAG has placed greater emphasis on audits of local governments (including panchayats). India has a large number of urban and rural local bodies and there are 2,62,000 in rural India. India has three levels of government: the Centre, states and local government (urban and rural local bodies). The Union Financial Commissions ensure direct decentralization of approximately 4.2 percent of the total divisible pool to the third tier of local governments.
Murmu said in his speech at the international conference that the SAI of India is committed to strengthening local government auditing. Recognizing that grassroots governance challenges may be specific to contiguous geographic areas, the SAI of India embarked on an audit of local governments with a focus on districts – administrative decisions spanning multiple villages and towns, Murmu said.
CAG undertook audits of local government bodies in all states, including West Bengal, Kerala and Karnataka (which itself had given the mandate to CAG). Pilots are underway in all states other than these three states, where work has already been completed.
The objective of CAG local government audits is to assess the extent to which local governments are carrying out the functions delegated to them in accordance with the constitution and legislation. This local audit paradigm is dynamic and evolving. The initial framework and guidance is being modified and updated through consultations with stakeholders and feedback from audit teams.
Meanwhile, Murmu, at the international conference, stressed the need to explore the institutionalization of international standards for local governance audits “within our respective national, legal and regulatory frameworks”. This may involve incorporating relevant provisions into legislations, regulations and guidelines governing local governance and auditing practices, he said.
