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It is the first in country and aims to set global standards for auditing local governance bodies.
About iCAL
- Collaborative platform for policymakers and auditors and would serve as a centre of excellence for capacity building of auditors.
- Enhance independence of local government auditors to ensure improved financial performance assessment, and service delivery.
- Act as a knowledge centre and think-tank for addressing governance issues at grassroot levels.
Need for iCAL in India
- To enhance collaboration among 2.5 lakh panchayats and 8,000 Urban Local Bodies (ULBs), and exchange knowledge, promote best practices etc. (CAG)
- Aligned with Global practices as 40 countries have their respective Supreme Audit Institutions (SAI).
- Inefficiencies in fund utilization, as most municipalities do not use their audited financial statements for cash flow management. (RBI)
Current auditing mechanism of Local Bodies
- Through Examiner of Local Fund Accounts (ELFA) or Director of Local Fund Accounts (DLFA) in most states.
- It audits utilization of funds granted by state government to local bodies.
- Audit is also done by other institutions like Comptroller and Auditor General (CAG).
- CAG exercises control and supervision over proper maintenance of accounts and auditing for all three levels of PRIs/ULBs.
- CAG advises and supports ELFA/DLFA.
Local Governance in India
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