Why is it in the News?

The International Centre for Audit of Local Governance (iCAL) was recently inaugurated in Rajkot, Gujarat. This marks a significant step towards setting global standards for auditing local governance bodies in India.

About iCAL

• Objective: iCAL is established as a collaborative platform aimed at setting global standards for local governance audits.
• Functions:
• Serves as a center of excellence for building the capacity of auditors.
• Enhances the independence of local government auditors to improve financial performance assessments and service delivery.
• Acts as a knowledge hub and think-tank to address grassroots governance issues.

Local Self-Governance and Its Audit

• Constitutional Amendments: The 73rd and 74th Constitutional Amendment Acts of 1992 introduced provisions for local self-governance.
• Panchayats: Established at village, block, and district levels.
• Municipalities: Formed as municipal corporations, municipal councils, and nagar panchayats.
• AuditOnline: Launched in 2020 by the Ministry of Panchayati Raj, this application conducts online audits of panchayat accounts, ensuring accountability in fund utilization. It was awarded the World Summit on Information Society Prizes 2023 by ITU.

Current Auditing Mechanism of Local Bodies

• CAG’s Role: The Comptroller and Auditor General (CAG) of India oversees the audit of local bodies under the CAG’s (Duties, Powers and Conditions of Service) Act, 1971.
• ELFA/DLFA: Examiner or Director of Local Fund Accounts in most states audit the utilization of funds granted to local bodies, working under CAG’s guidance.

Importance of Auditing Local Bodies

• Financial Accountability: Detects and prevents financial mismanagement and corruption, ensuring public funds are used correctly.
• Performance Evaluation: Provides a critical assessment of local bodies’ operations against benchmarks.
• Service Delivery: Audit findings can enhance public service delivery and strengthen local governance.
• Democratic Participation: Encourages citizen engagement and strengthens grassroots democracy (e.g., social audits).
• Public Trust: Improves accountability and instills confidence among citizens and stakeholders.
• Decentralisation: Identifies issues related to the devolution of functions, funds, and responsibilities, promoting effective decentralization.

Decentralisation & Inclusive Development

• Participation: Enables marginalized groups to participate in decision-making (e.g., Back to Village Programme in J&K).
• Tailored Solutions: Local governments address specific community challenges (e.g., road development in Vyara, Gujarat).
• Political Representation: Empowers marginalized sections through representation (e.g., 46% of PRI representatives are women).
• Development: Promotes local development through effective devolution (e.g., 5.17 crore assets under MGNREGA).
• Equity in Healthcare: Enhances access to health care through decentralization (e.g., WHO Alma Ata Declaration).
• Water Management: Utilizes traditional knowledge for sustainable resource management (e.g., Atal Bhujal Yojana).

Challenges in Auditing Local Bodies

• Poor Record Keeping: Incomplete and inconsistent financial records, lacking uniform auditing standards.
• Lack of Skilled Personnel: Shortage of qualified auditors leading to inadequate audits.
• Overlapping Jurisdictions: Confusion and inefficiencies due to division of auditing responsibilities among various agencies.
• Outdated Procedures: Old formats and procedures for maintaining accounts, despite increased responsibilities.
• Low Awareness: Limited public understanding of audit processes and their importance, reducing scrutiny and accountability.

Recommendations from the 2nd Administrative Reforms Commission (2nd ARC) for Auditing Local Bodies

To enhance the effectiveness of auditing local bodies, the 2nd Administrative Reforms Commission (2nd ARC) has outlined several key recommendations. These aim to improve the transparency, independence, and capacity of the auditing mechanisms for local governance bodies. Here’s a detailed look at these recommendations:

1. Simplification of Audit and Accounting Standards

• Objective: Ensure that audit and accounting standards and formats for Panchayats are user-friendly and understandable for elected representatives.
• Action: Develop standards that are straightforward, enabling elected officials to comprehend and utilize them effectively in overseeing financial matters.

2. Institutional Independence of Auditing Agencies

• Objective: Strengthen the independence of the Director of Local Fund Accounts (DLFA) or any other auditing agency responsible for local body accounts.
• Action:
• Independence: Make the office of DLFA or equivalent body independent from the State administration to avoid conflicts of interest and ensure objective auditing.
• Appointment: The head of this auditing body should be appointed by the State Government from a panel approved by the Comptroller and Auditor General (CAG) of India, ensuring transparency and accountability in the appointment process.

3. Legislative Oversight of Audit Reports

• Objective: Improve the scrutiny and discussion of audit reports on local bodies.
• Action:
• Presentation: Audit reports should be placed before the State Legislature.
• Discussion: These reports should be reviewed and discussed by a separate committee of the State Legislature, modeled on the Public Accounts Committee, to ensure thorough examination and follow-up on audit findings.

4. Access to Information for Auditing

• Objective: Ensure auditors have access to all relevant information and records necessary for a comprehensive audit.
• Action:
• Legal Provisions: Incorporate provisions in State Laws governing local bodies to guarantee that DLFA, designated authorities, or the CAG have unrestricted access to pertinent information and records needed for auditing.

5. Capacity Building for Local Bodies

• Objective: Align the capacity of local bodies with standards of accounting and auditing.
• Action:
• Capacity Development: Each State should ensure that local bodies are equipped with adequate resources, training, and infrastructure to meet established accounting and auditing standards.

Current Status

• Maintenance Issues: Due to recent budget constraints, maintenance and repairs at Bavikonda Monastery have been less than optimal.
• Tourism Circuit: Bavikonda is part of the 'Shalihundam-Thotlakonda-Bavikonda-Bojjanakonda-Amravati-Anupu' Buddhist Circuit under the Swadesh Darshan Scheme. This scheme, launched in 2015 by the Ministry of Tourism, aims to develop sustainable and responsible tourism destinations across India.

About Bavikonda Monastery

• Location: Situated near Visakhapatnam, Andhra Pradesh.
• Name Origin: The name 'Bavikonda' translates to 'hill of wells,' referencing the numerous wells that once existed in the area for storing rainwater.
• Historical Significance:
• Dating Back: The monastery dates to the 3rd century BCE, making it a site of considerable historical importance.
• Buddhist Complex:
• Theravada (Hinayana) Buddhism: The monastery follows Theravada Buddhism, one of the oldest forms of Buddhism.
• Structures:
• Mahastupa: A large stupa used for religious purposes.
• Acharya Vihara: Residential quarters for monks.
• Chaitya Griha: A prayer hall or assembly hall.
• Buddha Pada Platforms: Platforms with footprints of Buddha.
• Votive Stupas: Smaller stupas built as offerings or for merit-making.

Significance in the Buddhist Circuit

• Cultural and Historical Importance: Bavikonda adds significant value to the Buddhist Circuit by showcasing ancient Buddhist architecture and providing insights into early Buddhist practices and community life.
• Tourism Development: As part of the Swadesh Darshan Scheme, Bavikonda is intended to enhance tourism by promoting and preserving its historical and cultural heritage, although current maintenance challenges need to be addressed to fully realize its potential.

Conclusion

Bavikonda Monastery is a key site within the Buddhist Circuit, representing a crucial piece of India's Buddhist heritage. Efforts to improve its maintenance and integrate it more effectively into the Swadesh Darshan tourism framework would help preserve its historical significance and enhance its appeal as a tourist destination.

The recently released CITES report titled “CITES Rosewoods: The Global Picture” provides a comprehensive analysis of rosewood species listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). This report is instrumental in guiding CITES parties to make informed non-detriment findings (NDFs) regarding the trade of rosewood species.

Key Aspects of the Report:

• Rosewood Species:
• Characteristics: The report details the physical and biological traits of CITES-listed rosewood species.
• Ecosystem Roles: It examines how these species contribute to their ecosystems, including soil improvement and nitrogen fixation.
• Regeneration Rates: The report assesses the ability of these species to regenerate and recover from harvesting pressures.
• Threats: Identifies the primary threats faced by rosewood species, including illegal logging and habitat loss.
• Non-Detriment Findings (NDFs):
• Purpose: An NDF is a scientific analysis required under CITES to ensure that the trade of specimens listed in Appendices I and II does not jeopardize the species' survival in the wild.
• Function: The report aids CITES parties in making these findings by providing crucial data on the species' status and trade impacts.

About Rosewood

• Definition:
• Rosewood: Commonly known as "palisander," rosewood refers to various tropical hardwoods in the Fabaceae (Leguminosae) family.
• CITES Listings:
• Dalbergia latifolia (Malabar Rosewood): Found in India, listed as Vulnerable on the IUCN Red List.
• Dalbergia Sissoo (Shisham): Also found in India, listed as Least Concern on the IUCN Red List.
• African Rosewood: Native to West Africa, listed as Endangered on the IUCN Red List.
• Utility:
• Crafting: Rosewood is highly valued for making furniture and musical instruments due to its durability and aesthetic qualities.
• Role in Ecosystem:
• Soil Improvement: Dalbergia species contribute to soil health through fast-decomposing leaf litter that enriches the soil with nitrogen, phosphorus, and carbon.
• Nitrogen Fixation: Some rosewood species form symbiotic relationships with soil bacteria, aiding in the fixation of atmospheric nitrogen, which enhances soil fertility.

Significance of the Report:

• Informed Decision-Making: The detailed characteristics and ecological roles provided in the report enable CITES parties to make better-informed decisions regarding the management and trade of rosewood species.
• Conservation Efforts: By understanding the regeneration rates and threats to rosewood species, conservationists and policymakers can develop targeted strategies to protect these valuable trees.
• Trade Regulation: The report supports effective regulation of international trade in rosewood, ensuring that it does not negatively impact the species' long-term survival.

About CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is an international agreement aimed at ensuring that international trade in wild animals and plants does not threaten their survival. Established in 1973, CITES provides a framework for regulating and monitoring the trade of species that are at risk of extinction due to exploitation.

Key Features:

• Purpose:
• Conservation: CITES aims to protect endangered species from over-exploitation by regulating and monitoring their international trade.
• Sustainability: Ensures that trade practices do not jeopardize the long-term survival of species in the wild.
• Structure:
• Appendices: CITES categorizes species into three appendices based on their conservation status and the level of trade regulation required:
• Appendix I: Includes species that are threatened with extinction and are prohibited from international trade except under exceptional circumstances. Examples include the giant panda and the African elephant.
• Appendix II: Includes species not necessarily threatened with extinction but may become so if trade is not regulated. Trade is permitted but requires a permit. Examples include the rosewood species and certain reptiles.
• Appendix III: Includes species protected by one or more countries and requires international cooperation for their trade regulation. Examples include the European eel.
• Parties and Governance:
• Member States: CITES has 184 parties (countries) that have agreed to adhere to its provisions and work together to implement its regulations.
• Secretariat: The CITES Secretariat, based in Geneva, Switzerland, administers the Convention and supports its implementation.
• Standing Committee: This committee oversees the implementation of the Convention and meets regularly to address any issues that arise.
• Conference of the Parties (CoP): The decision-making body that meets every two to three years to review and amend CITES policies, appendices, and regulations.
• Implementation:
• Permits: For species listed in Appendices I and II, export and import permits are required. These permits ensure that the trade is sustainable and does not negatively impact the species’ survival.
• Non-Detriment Findings (NDFs): Scientific analysis required to ensure that the export of specimens will not harm the species' long-term survival.
• Key Activities:
• Monitoring and Reporting: CITES tracks international trade in species through a comprehensive reporting system, known as the CITES Trade Database.
• Capacity Building: Provides training and resources to countries to help them implement CITES regulations effectively.
• Public Awareness: Works to increase awareness about the importance of conserving species and the role of CITES in global wildlife protection.
• Recent Developments:
• Increased Participation: CITES continues to expand its reach, with more countries joining and more species being included in its appendices.
• Challenges and Adaptations: CITES faces challenges such as addressing illegal wildlife trade, adapting to new conservation needs, and ensuring effective enforcement.

Significance: CITES plays a crucial role in global conservation efforts by regulating international trade in wildlife and plants. Its work helps protect biodiversity, supports sustainable use of natural resources, and combats illegal trade practices. The Convention’s ability to adapt and address emerging issues is vital for the ongoing preservation of endangered species worldwide.

Conclusion:

The CITES report on rosewoods is a crucial resource for ensuring the sustainable management and conservation of these economically and ecologically important species. It equips CITES parties with the knowledge needed to make decisions that balance trade interests with conservation needs, ultimately contributing to the preservation of rosewood species and their ecosystems.