More states to replicate MP's panchayats accounting model

To bring more transparency in panchayat auditing system, states like Assam, Bihar, Orrisa, Haryana and Tamil Nadu today went through finer points of concurrent auditing system prevalent in Madhya Pradesh.

The state government has replaced double auditing system with concurrent auditing system and has digitised it. A platoon of chartered accountants, accountants and those have working knowledge of auditing would make it transparent and put on a see-through portal.

"Other states have evinced interest in the new concurrent auditing system as it is user-friendly, we will see all our 20,000 panchayats coming on this new platform by l by 2014-15," said Aruna Sharma, additional chief secretary, panchayat and rural development department.

As many as 10 professional chartered accountant firms have been hired by the state government. These firms would have a network across all fifty-one districts and all panchayats.

"There are some flaws in the existing software PRIAsoft (Panchayati Raj Institutions Accounting software) used for accounting of various panchayati raj institutes but software like Panchayat Darpan developed by Madhya Pradesh seems more useful," said a participant.

Though user-friendly, the new software and accounting system has some issues that need to be fixed. "It requires data entry in English and the person making data entry at rural area may feel it difficult. None knows what would happen to asset devaluation in the panchayat. Further, if unused funds are lying at the panchayat they still would demand fresh funds as the new system does not have room for unutilized funds," a senior official from another state said adding, "None use this kind of accounting system at least in entire North India."

Schemes like NREGS have reportedly been in questions in many states in terms of misuse of funds and various state governments yet have no solution to plug the leaks in system. "This concurrent accounting system has already been put in place and leaves no room for changes, modifications and alteration once accounts have been taken into records. More importantly even a commoner can visit accounts of Panchayats anytime from anywhere. More and more states may replicate it," said Ravindra Pastor, Commissioner MNREGS, Madhya Pradesh.