07-July-2011 17:23 IST
Union Ministry Of Rural Development has issued the
Notification regarding the proposed set of rules and
regulations for the Social Audit of Mahatma Gandhi
National Rural Employment Guarantee Act (MGNREGA).
These rules have been framed in consultation with
the Comptroller and Auditor General of India under
the sub-section (1) of section 24 of the Mahatma
Gandhi National Rural Employment Guarantee Act, 2005
(Central Act 42 of 2005) and published in public
domain on June 30,2011 after inviting objections and
suggestions and incorporating them.
1. Short title and commencement.- (1) These
rules may be called the Mahatma Gandhi National
Rural Employment Guarantee Audit of Schemes Rules,
(2) For the purposes of these rules, audit of
schemes shall include social audit.
(3) They shall come into force from the date of
their publication in the official Gazette.
2. Audit of accounts.-(1) The audit of the
accounts of a scheme under the Act for each district
as well as of the State Employment Guarantee Fund
shall, for each year, be carried out by the
Director, Local Fund Audit or equivalent authority
or by Chartered Accountants.
(2) The Director, Local Fund Audit, or equivalent
authority, or the Chartered Accountant, as the case
may be, shall submit accounts of the scheme together
with the audit report thereon to the State
(3) The accounts of the schemes of every State
Government as certified together with the audit
report thereon shall be forwarded to the Comptroller
and Auditor General of India and the Central
Government by the State Government. The Central
Government shall cause the audit report to be laid,
as soon as may be after they are received, before
each House of Parliament.
(4) The Comptroller and Auditor General of India, or
any person appointed by him in this behalf, shall
have the right to conduct audit of the accounts of
schemes at such intervals as he may deem fit.
3. Social audit to be part of audit of schemes.-
(1) The State Government shall facilitate conduct of
social audit of the works taken up under the Act in
every Gram Panchayat at least once in six months in
the manner prescribed under these rules.
(2) A summary of findings of such social audits
conducted during a financial year shall be submitted
by the State Government to the Comptroller and
Auditor General of India.
4. Social audit facilitation.- (1) The State
Government shall identify or establish, under the
Act, an independent organization (hereinafter
referred to as Social Audit Unit) to facilitate
conduct of social audit by Gram Sabhas.
(2) The Social Audit Unit shall be responsible for
the following, namely:—
(a) build capacities of Gram Sabhas for conducting
social audit; and towards this purpose, identify,
train and deploy suitable resource persons at
village, block, district and state level, drawing
from primary stakeholders and other civil society
organizations having knowledge and experience of
working for the rights of the people.
(b) prepare social audit reporting formats, resource
material, guidelines and manuals for the social
(c) create awareness amongst the labourers about
their rights and entitlements under the Act;
(d) facilitate verification of records with primary
stakeholders and work sites;
(e) facilitate smooth conduct of social audit Gram
Sabhas for reading out and finalising decisions
after due discussions;
(f) host the social audit reports including action
taken reports in the public domain.
5. Social audit pre-requisites. – (1) The
Social Audit shall be a process independent of any
process undertaken by the implementing agency of the
(2) The implementing agency shall at no time
interfere with the conduct of social audit.
(3) Notwithstanding anything contained in sub-rule
(2), the implementing agency of the Scheme shall
provide requisite information to the Program Officer
for making it available to Social Audit Unit at
least fifteen days prior to the date of commencement
of the social audit.
(4) The resource persons deployed for facilitating
social audit in a Panchayat shall not be residents
of the same Panchayat.
6. Process for conducting social audit.- (1)
The Social Audit Unit shall, at the beginning of the
year, frame an annual calendar to conduct at least
one social audit in each Gram Panchayat every six
months and a copy of the calendar shall be sent to
all the District Program Coordinators for making
(2) For facilitating conduct of social audit by Gram
Sabha, the resource persons deployed by Social Audit
Unit, along with primary stakeholders shall verify —
(i) the muster rolls, entry and payments made in the
specified time period, by contacting the wage
seekers whose names are entered in such muster
(ii) the work site and assess the quantity with
reference to records and also quality of work done;
(iii) the cash book, bank statements and other
financial records to verify the correctness and
reliability of financial reporting;
(iv) the invoices, bills, vouchers or other related
records used for procurement of materials to testify
such procurement was as per the estimate, as per
procedure laid down and was economical;
(v) any other payment made by the implementing
agency from the funds of the scheme.
(3) The labourers and the village community shall be
informed about the Gram Sabha conducting social
audit by the resource persons as well as the Program
Officer to ensure full participation.
(4) To conduct social audit process, a Gram Sabha
shall be convened to discuss the findings of the
verification exercise and also to review the
compliance on transparency and accountability,
fulfillment of the rights and entitlements of
labourers and proper utilization of funds.
(5) All elected members of Panchayats and staff
involved in implementing the schemes under the Act
(including the staff of the Non-Governmental
Organizations, the Self Help Groups, and disbursing
agencies) shall be present at the Gram Sabha and
respond to queries.
(6)The Gram Sabha shall provide a platform to all
villagers to seek and obtain further information and
responses from all involved in the implementation.
It will also provide a platform to any person who
has any contribution to make and relevant
information to present.
(7) The District Program Coordinator shall attend
the Gram Sabha meeting or nominate an official of
appropriate level for smooth conduct of the Gram
(8) The social audit reports shall be prepared in
local language by the Social Audit Unit and
displayed on the notice board of the Gram Panchayat.
(9)The action taken report relating to the previous
social audit shall be read out at the beginning of
the meeting of each social audit.
7 Obligation of certain persons in relation to
social audit. –(1) The Program Officer shall
ensure that all the required information and records
of all implementing agencies such as, Job card
register, Employment register, Work Register, Gram
Sabha Resolution, Copies of the sanctions
(Administrative or Technical or Financial), Work
Estimates, Work Commencement Order, muster-roll
issue and receipt register, muster Rolls, Wage
Payment Acquittance & order, Materials – Bills and
vouchers (for each work), Measurement Books (for
each work), Asset Register, Action Taken Report on
previous social audits, grievance or complaints
register, any other documents that the Social Audit
Unit requires to conduct the social audit process
are properly collated in the requisite formats; and
provided, along with photocopies, to the Social
Audit Unit for facilitating conduct of social audit
at least fifteen days in advance of the scheduled
date of meeting of the Gram Sabha conducting social
(2) The information referred to in sub-rule(1) shall
be publically available at the same time and the
photocopies shall be available at nominal cost.
(3) Every District Program Coordinator or any
official on his behalf, shall, -
(a) ensure that all records for conduct of social
audit are furnished to the Social Audit Unit by
implementing agencies through the Program Officer;
(b) ensure that corrective action is taken on the
social audit report;
(c) take steps to recover the amount embezzled or
improperly utilized; and issue receipts or
acknowledgement for amount so recovered;
(d) pay wages found to be misappropriated, within
seven days of the recovery of such amount, to the
(e) maintain a separate account for amounts
recovered during the social audit process;
(f) ensure that the appropriate action (including
initiating criminal and civil proceedings or
termination of services) is initiated against
individual or class of individuals or persons who
miss utilized or embezzled the amount meant for the
schemes under the Act.
(4) The State Govt shall be responsible to take
follow up action on the findings of the social
(5) The State Employment Guarantee Council shall
monitor the action taken by the State Government and
incorporate the Action Taken Report in the annual
report to be laid before the State Legislature by
the State Government.
(6) The costs of establishing the Social Audit Unit
and conducting social Audit shall be met by the
Central Government as a central assistance in
accordance with the instructions issued in this