The Ministry of Panchayati Raj (MoPR) has announced plans to conduct an online audit of around 50,000 Gram Panchayats (GPs) via the AuditOnline application during the financial year 2020-21. This move will mark the debut of such an initiative.
Online Audit of Panchayat Accounts
In this first-of-a-kind exercise, books of accounts for the fiscal year 2019-20 of approximately 50,000 GPs will be scrutinized. The focus will be on their use of Finance Commission grants. This figure denotes 20% of the estimated 2.5 lakh GPs in India. The exercise will be expanded in the next financial year (2021-22) to include all GPs. The 15th Finance Commission had recommended a fund allocation of INR 60,750 crore for rural local bodies for this period.
About AuditOnline
AuditOnline is an application developed as part of the Panchayat Enterprise Suite under the e-panchayat Mission Mode Project initiated by MoPR. It aids in the financial audit of accounts at District, Block, and Village Panchayat levels, Urban Local Bodies, and Line Departments by auditors. Not only does it facilitate online and offline audits of accounts, but it also helps maintain past audit records.
Benefits of Online Audits
Online audits with physical verification options are significant, considering the pandemic and the ensuing lockdown. As some works under various schemes are geo-tagged, auditors can carry out sample checks by visiting the site. Such audits also ensure fund accountability at ground level, which was not possible with offline systems due to issues like timely record availability. In contrast, with the online system, auditors can access work approval and payment documents. They can even request additional documents such as work completion photographs.
Challenges in Implementing Online Audit
More than 15% of Panchayats in several states have not completed their bookkeeping for 2019-20. This is a major hurdle as account closure is a prerequisite for online auditing. States like Maharashtra and Haryana have achieved 100% account closures, but no Panchayat has done this in Arunachal Pradesh and Bihar.
Panchayat Enterprise Suite
The Panchayat Enterprise Suite (PES) is part of the e-Panchayat Mission Mode Project which seeks to strengthen e-Governance in Panchayati Raj Institutions. The suite consists of eleven core applications catering to various functions from planning and monitoring to citizen service delivery.
Moving Forward with ICT in Panchayats
If Panchayats are to perform effectively and efficiently, it is crucial to make extensive use of Information and Communication Technology (ICT). The launch of e-GramSwaraj and Swamitva Programme underlines this need. Plus, there is a dire requirement to build a “digital inclusive society” where a major section of rural populace can take advantage of new technologies, access and share information, and participate more effectively in the development process.