Social audit is a collaborative process in which the public, particularly the beneficiaries, actively participate in evaluating the performance of government programs and projects. This form of audit allows people to directly assess and oversee the effectiveness of governmental initiatives, together with the administration

Evolution of Social Audit in India:

1. Origin: Social audit originates from “Corporate Social Responsibility” (CSR), first adopted in Western countries. It was later incorporated by various corporate and social institutions worldwide. In the 1980s, it was introduced in the public sector, driven by a shift towards democratic governance and increased citizen participation.
2. 1979: In India, the concept of social audit was first initiated by Tata Iron and Steel Company Limited (TISCO) in Jamshedpur.
3. 73rd Constitutional Amendment Act: The momentum for social audit increased with the 73rd Constitutional Amendment Act, which empowered Gram Sabhas to audit Panchayat accounts.
4. Civil Society Initiatives (1990s onwards): Various civil society organizations and movements began conducting social audits to monitor the performance of various institutions.
5. 9th Five-Year Plan (2002-2007): It emphasized the role of Gram Sabhas in conducting social audits for the effective functioning of Panchayati Raj Institutions (PRIs).
6. Right to Information Act, 2005: This act facilitated the indirect engagement of citizens in the social auditing of government operations.
7. MGNREGA 2006: The inclusion of Section 17, mandating transparency and public scrutiny, significantly enhanced the relevance and acceptance of social audit globally.
8. Social Audit Units (SAU): Established by many states, these units facilitate the social audit of programs like Pradhan Mantri Awas Yojana (PMAY), Midday Meal Scheme (MDM), etc.
9. Meghalaya Social Audit Act, 2017: Meghalaya became the first state in India to enact legislation that institutionalizes the social audit of government schemes and programs as a governance mechanism.

Objectives of Social Audit

1. Transparency and Accountability: Enhance transparency and accountability in government policy implementation.
2. Resource Allocation: Ensure proper utilization of funds and prioritize development activities.
3. Policy Scrutiny: Examine various policy decisions and identify any gaps in funding and outcomes.
4. Program Efficiency: Boost the efficacy and efficiency of local development programs, considering the interests of stakeholders.
5. Awareness Creation: Raise awareness among beneficiaries and providers of local social and productive services.

Principles of Social Audit:

1. Inclusivity: Incorporate the viewpoints of all stakeholders affected by decisions.
2. Comprehensive & Comparative: Evaluate and report on every aspect of an organization’s performance.
3. Participatory: Foster stakeholder engagement and value sharing.
4. Consistency: Regularly produce social accounts to integrate the practice into the organization’s culture.
5. Integrity: Ensure that social accounts are audited by an impartial and experienced individual or agency.
6. Transparency: Make audited accounts accessible to stakeholders and the broader community to support transparency and accountability.

Importance of Social Audit in India:

1. Participatory Governance: Public meetings (Jansunwais) review RTI records, identify issues, correct schemes, reduce secrecy, and build trust. Eg: Andhra Pradesh’s MGNREGA Jansunwais addressed job card and wage payment discrepancies.
2. Innovative Approach: Social audits compare real outcomes with official records. Eg: Rajasthan’s PDS audits revealed ration distribution issues, leading to reforms.
3. Increased Transparency: Audits publicize official information, raising awareness. Eg: PMAY audits published beneficiary lists and construction progress online.
4. Improved Accountability: Audits hold officials accountable for poor implementation. Eg: Bihar’s MDM Scheme audits exposed meal distribution irregularities, resulting in disciplinary actions.
5. Local Oversight: Gram Sabhas conduct regular project audits, ensuring community involvement. Eg: Kerala’s People’s Planning Campaign includes regular audits by Gram Sabhas.
6. Deters Corruption and Malpractices – In Rajasthan, social audits have exposed irregularities in various public works and services, leading to corrective actions and prosecutions.
7. Improves Public Service Delivery – Social audits in the public distribution system (PDS) have helped to identify and rectify issues such as fake ration cards and improper allocation of food grains .

Challenges in Implementing Social Audit:

1. Lack of Legal Backing – While social audits are mandated in several schemes, there is no comprehensive legal framework ensuring their implementation and follow-up.
2. Lack of Political and Administrative Will: SA often seen as a formality with no real outcomes due to reluctance to share information and fear of scrutiny.
3. Low Public Awareness and Participation: Insufficient awareness, incentives, interest, and capacity among the public to engage in SA meaningfully.
4. Institutional Issues: No permanent structure, lack of independence, inadequate staffing in SAUs, no strict penalties for non-compliance, and no independent body to act on SA findings.
5. Complexity and Scope: Audits covering large and multi-faceted schemes like MGNREGA can be overwhelming, leading to incomplete or superficial assessments.
6. Follow-Up and Action on Findings: According to the Ministry of Rural Development, a significant percentage of social audit recommendations remain unaddressed 
7. Insufficient Resources: Many social audit units are underfunded and understaffed, making it difficult to conduct thorough audits. Eg- social audits of MGNREGA
8. Poor Record Keeping: Inconsistent and fragmented government data hampers comprehensive audits.
9. Localized and Sporadic Audits: SA are often localized, sporadic, and ad-hoc, leading to inconsistent impacts and reduced relevance due to delays.
10. Weak Civil Society Support: Few active and committed civil society organizations to facilitate social audits and train stakeholders.

Government Steps to Institutionalize Social Audit:

1. Information-Monitoring, Evaluation, and Social Audit (I-MESA): Launched by the Ministry of Social Justice and Empowerment in FY 2021-22 to audit all department schemes using State SAUs and NIRD&PR.
2. Short-term Certificate Course: Developed for district-block resource persons and SHGs in collaboration with TISS and NIRD&PR, Hyderabad.
3. Institutionalizing SAs in Rural Schemes: Implemented in major schemes like the National Social Assistance Programme and PM Awas Yojana-Gramin, including funds from the 14th Finance Commission.
4. Training Women SHGs: Approximately 60,000 women SHGs trained through a special certificate course to conduct social audits.
5. Directorates of SAs: Established in various states with resource persons to conduct audits of government schemes.
6. Operational Guidelines: Issued by the Ministry of Housing and Urban Poverty Alleviation for social audit methodologies across different schemes.
7. Civil Society Engagement: Example: MV Foundation conducted social audits of Mid-Day Meals in Andhra Pradesh, focusing on child labor and education rights.

Way Forward:

1. Raise Awareness and Build Capacity: Educate stakeholders to hold authorities accountable. Utilisation of Media to popularize social audits.
2. Mandatory Real-Time Data Disclosure: Require proactive sharing of financial data and beneficiary lists. Use technology like MIS for transparency.
3. Increase Funding and Staffing for SAUs: Ensure SAUs are well-funded and staffed independently, free from political influence.
4. Legal Sanctions and Punitive Actions: Implement legal consequences based on social audit findings to build public trust. Meghalaya’s law can serve as a model.
5. Promote Civil Society Participation: Encourage civil society involvement to enhance capacity and streamline processes. As Jharkhand includes CSO representatives in social audit panels.
6. Increase Audit Frequency: Conduct social audits more frequently. Every Gram Panchayat should have an audit every six months.
7. Training Programs: Implement training on social audit methods, report preparation, and presentation at Gram Sabha. Establish district teams of social audit experts for training.
8. Enact National Law for Social Audits: Create a national law to empower citizens and strengthen grassroots democracy.