The rural development ministry has notified the draft rules pertaining to the audit of its rural employment guarantee scheme NREGS. Following the notification, the scheme comes under the ambit of comptroller and auditor general (CAG) of India.

Under the new rules the audit of the accounts of the scheme under the act for each district for each year shall be carried out either by director, local fund audit or equivalent authority or by charted accountants to be appointed by the state government from the list of chartered accountants empanelled by the CAG and the CAG may specify from time to time such criteria and terms and conditions for selection and appointment of the chartered accountants.

The CAG shall issue directions and instructions to the chartered accountants regarding the conduct of audit and the format, structure, and content of the audit reports thereon.

The state government shall establish a directorate of audit of scheme under MGNREGA to facilitate and oversee the process of audit of accounts including the social audits throughout the state and act as a co-ordinate between the CAG and state accountant general.

The directorate of audit shall also function as facilitator to review ongoing requirements of each scheme implemented in the state, prepares estimates of required entitlements of workers, monitors proper utilsation of funds at grassroots.

The directorate of audit shall frame an annual calendar to conduct at least one audit in every six months and a copy of the calendar shall be sent to the district programme coordinators and to the state accountant general for information and necessary arrangements.

The social audit resource persons trained by the directorate of audit shall facilitate the social audit along with the representative of the directorate of audit in gram panchayats other than their own gram panchayat.

The person appointed by the CAG may be present at the gram sabha conducting the social audit and may provide information and clarifications relating to the implementation of the scheme at the gram sabh and he may also facilitate the social audit process.