Haryana mandates CAG-certified auditors for Panchayats and Municipal bodies

Auditing for panchayats and municipal bodies in Haryana will now exclusively be conducted by auditors certified by the Comptroller and Auditor General (CAG). This move is expected to play a significant role in probing financial irregularities and establishing accountability.

Acting on the advice of Deputy Comptroller and Auditor General Subir Malik, Chief Secretary Sanjeev Kaushal has written to the Additional Chief Secretary (ACS) of the Finance Department to get the audit done only by CAG certified auditors. Even before this decision of the government, the Deputy Comptroller and Auditor General had advised the government that apart from the Finance Commission, irregularities had been found in the audit conducted by the CAG and the Local Fund Auditor of the Haryana Government. Many shortcomings were also revealed in the maintenance of accounts in Panchayats and municipal bodies. Therefore, it is important that the audit process is completed by CAG certified smart auditors only.

There is a severe shortage of qualified auditors at the local level in Haryana. Because chartered accountants and other qualified professional accountants are not interested in taking up and working in villages and small towns due to distance from big cities and less money. To deal with this problem the Auditor General has advised the Government that this problem could be substantially improved by creating a group of accountants willing to work in local areas and having the necessary skills to prepare relatively simple accounts of these bodies. In view of this problem of the government, CAG signed a memorandum with the Institute of Chartered Accountants of India (ICAI) to develop a set of online certification courses for accountants in November 2022. It started three-month courses, two each for rural and urban areas. Officials said that after getting certified, accountants will be able to find employment in local bodies. Over time will create a pool of certified accountants in local areas.