iCAL (Syllabus: GS Paper 2 – Polity/Governance)

Context: Comptroller and Auditor General (CAG) of India inaugurated the International Centre for Audit of Local Governance (iCAL) in Rajkot.

International Centre for Audit of Local Governance (iCAL)

• About: It is a pioneering initiative by SAI India
• Primary Objectives

o Developing and Enhancing Standards: iCAL focuses on establishing and improving standards for Local Government Audits.

o Strengthening Data Collection and Reporting: iCAL aims to bolster how data is collected and reported within local governments.

o Training: The initiative provides comprehensive training and leadership development for auditors, executives, and elected representatives.

o Supporting Sustainable Development Goals (SDGs): iCAL emphasizes the role of Local Governments in achieving SDGs by fostering grassroots engagement and citizen accountability.

• Achieving Sustainable Development Goals: iCAL supports Local Governments in reaching SDGs by encouraging community engagement.
• Addressing Global Challenges: The platform helps tackle issues such as climate change and the blue economy, essential for effective policy implementation and grassroots economic growth.

Local Bodies Audit in India

• Three-Tier Governance Structure: India’s governance includes the Union, state, and local bodies, with Panchayati Raj Institutes (PRIs) and Urban Local Bodies (ULBs) managing self-governance.
• Role of State Government Auditors: Many state governments appoint an Examiner of Local Fund Accounts (ELFA) or Director of Local Fund Accounts (DLFA) to audit local body accounts.
• Function of ELFA and CAG: The ELFA audits state-granted funds, while the Comptroller and Auditor General (CAG) oversees all levels of PRIs/ULBs, providing technical guidance and support to state auditors.