Social And Performance Audit Authority (SPAA) 2021, Rajasthan

Policy Update
Ishita Deb

As a part of the ‘Grading for School’ initiative the Social and Performance Audit Authority (SPAA) was introduced in the 2021-22 budget and set up in August 2022 after the clearance received by the Rajasthan cabinet for the proposal. Social and Performance Audit Authority involves social audits and performance audits. It is claimed to be one of the first of such kind in India and is an independent authority. The geographical area of this SPAA is Rajasthan (also coined as the RSPAA) and the administrative data is the finance department. The basic aim of SPAA is to strengthen the accountability, transparency and enhance the opportunities for citizen’s participation in implementation and evaluation of policies.

Background of Social and Performance Audits

The objective of the social (first introduced in early 1990s in India) and performance audits are to ensure whether the objectives of a particular policy or scheme is achieved or not. Social audits aim to evaluate and assess the social performance of policies and schemes by comparing official records to the ground realities.

Under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) launched in 2006, the process of social audits involved collecting records like muster rolls and then prepare surveys which were conducted by social auditor in specific geographical areas. Apart from this, he/she will also have to conduct spot inspections. With the introduction of MGNREGA, social audits were utilized more frequently thus building the trust among citizens. One of the first states to include this as a practice and in their state law was Meghalaya.

Moreover, National Rural Livelihood Mission (2011) used the social audits to help increase the participation of the marginalised communities and promote inclusive development. As a matter of fact, one of the best examples of the successful implementation of social audits was in Dungarpur district in Rajasthan which helped bring down the rates of mass corruption under MGNREGA.

Functioning of the SPAA

The performance audits require personnel from the valuation wing under the Planning Department and the Department of Treasuries and Accounts. The latter has excess personnels. The social audits are conducted jointly by the government and the citizens, mostly those who are directly affected by or are the direct beneficiaries of the scheme. This will be accompanied by a public satisfaction survey as well in order to better understand and measure the social performance of the schemes that are implemented. This enhances and promotes public participation, public trust and ensuring public satisfaction.

The social audits will have resource personnel at the district, block and village level in order to assess and evaluate the performance and ensure the quality of service delivery is up to mark in government departments, schemes, programs, undertaking and other activities.

In accordance with Section 17 of the MGNREGA, it is mandatory to conduct quality checks on the schemes, programs, and undertakings to secure funds from the central government. These quality checks are primarily conducted through social audits, ensuring that the projects comply with the established standards. If these social audits are not carried out, the central government has the authority to withhold funds for the respective schemes and programs under MGNREGA.

While this mechanism ensures accountability and transparency, a notable downside is that it can sometimes result in significant delays in the release of funds, making the entire process more protracted and less efficient. These delays can hinder timely implementation of critical development projects, affecting the livelihoods of the rural population dependent on these schemes.

The process involves having a week-long orientation and then collecting ground level information and data to create a report. This report needs to be filed online through the Audit Management System (AMS) under the Local Fund Audit Department (LFAD). The AMS is specially customized to file this report online and ease the process of doing so.

Impact of SPAA

The outcomes of the social and performance audits serve as crucial inputs for providing technical assistance to the financial and planning departments, particularly in areas such as the formulation of annual plans and the preparation of outcome-based budgets. These audits play a pivotal role in maintaining quality control for development and infrastructure projects in both rural and urban regions. By ensuring that projects meet the required standards, the audits help improve accountability and transparency.

The Social and Performance Audit Authority (SPAA) now aims to expand its scope by building capacity within the civil service organization. To achieve this, it plans to incorporate a diverse range of professionals—including doctors, engineers, architects, IT specialists, and economists—into the audit process at various administrative levels, such as the district, block, and village. This multidisciplinary approach not only strengthens the overall effectiveness of the audits but also promotes greater public participation. Additionally, the inclusion of these experts is expected to boost employment rates as more skilled professionals are engaged in the audit process. By enhancing collaboration across different sectors, the SPAA seeks to ensure that development initiatives are more responsive to the needs of local communities.

Issues with the SPAA

Firstly, in a lot of states SPAA is still not an independent authority which makes it less efficient, less reliable and less accurate. The penalties in not complying with the audits are not very high as well.

Secondly, SPAA faces major issues in implementation as it has very limited access to primary sources of information. The utilization of these sources is sometimes restricted which doesn’t contribute much to a quality audit.

Lastly, related to the second problem there arises the language barriers between the social auditors and the people who are surveyed in the Gram Sabha. The people in the Gram Sabha can sometimes only convey and comprehend efficiently in their local languages.

Way Forward

The way forward for the Social and Performance Audit Authority (SPAA) requires the establishment of a uniform framework and set of guidelines to be implemented consistently across all states. This will not only standardize the audit process but also enable meaningful cross-state comparisons and analysis. Additionally, it is essential to conduct workshops and training sessions for social auditors to address challenges such as language barriers and regional differences. By tailoring the surveys to the specific needs of different geographical areas, while still adhering to the uniform guidelines, the SPAA can ensure that audits are effective and contextually relevant.

Furthermore, establishing mechanisms for whistleblower protection is crucial for promoting transparency and accountability. Ensuring the safety and anonymity of individuals who report instances of corruption, fund misallocation, or misconduct is essential to encourage the reporting of such issues without fear of retaliation.

In conclusion, by implementing a standardized framework, offering specialized training, and safeguarding whistleblowers, the SPAA can significantly enhance its effectiveness. These steps will not only improve the quality and reliability of audits but also contribute to more transparent governance and better development outcomes, ultimately benefiting communities at every level.

References

Optimize IAS. (n.d.). Social and performance audit authority (SPAA). Optimize IAS. https://optimizeias.com/social-and-performance-audit-authority-spaa/#:~:text=In%20a%20first%20of%20its,of%20government%20schemes%20and%20programmes.
Indian Express. (2023, January 10). To ensure accountability in delivery of schemes, govt sets up audit panel. Indian Express. https://indianexpress.com/article/cities/jaipur/to-ensure-accountability-in-delivery-of-schemes-govt-sets-up-audit-panel-8368027/
Hindustan Times. (2023, September 6). Rajasthan to constitute India’s first social and performance audit authority. Hindustan Times. https://www.hindustantimes.com/cities/jaipur-news/rajasthan-to-constitute-india-s-first-social-and-performance-audit-authority-101662017795991.html
The Print. (2023, September 6). Rajasthan cabinet approves formation of audit authority to assess performance of depts. The Print. https://theprint.in/india/rajasthan-cabinet-approves-formation-of-audit-authority-to-assess-performance-of-depts/1103890/
The IAS Hub. (n.d.). Social audit. The IAS Hub. https://theiashub.com/free-resources/mains-marks-booster/social-audit

About the Contributor: Ishita Deb is a research intern at IMPRI. She’s currently pursuing her MA in economics from Boston University, USA. She completed her BA in economics honours from Lady Shri Ram College for Women, Delhi University. Her areas of research interest include macroeconomics and international economics.

Acknowledgement: The author would like to extend their gratitude to Dr. Arjun Kumar for his constant support and guidance. Moreover, the author would like to acknowledge the assistance of Ms Aasthaba Jadeja in the publication process and Anamitra Sinha and Dhruv Tapadia in reviewing their article.