GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Rural Development – National Rural Employment Guarantee Scheme –

A.P. Conducting of Social Audit – Rules – Preliminary notification -
Issued.

PANCHAYAT RAJ AND RURAL DEVELOPMENT (RD.II) DEPARTMENT

G.O. Ms .No.317 Date: 22-08-2008

Read the following:

1. G.O.Ms.No.27 PR&RD(RD.II)Dept., dt.28.01.06.

2. From the Jt. Secy.(NREGA) GOI, MORD,(NREGA Division)
Lr.No.J-11060/9/2006-NREGA(Pt.), dt.15.11.07.
3. G.O.Ms.No.550, PR&RD(RD II) Dept., dt. 06.12.2007.

***
ORDER:

Whereas, the Government is committed to the transparent

implementation of the National Rural Employment Guarantee Act,
2005(Central Act No.42 of 2005); (henceforth NREGA 2005).

And whereas, Section 17 of the National Rural Employment

Guarantee Act, 2005 provides for regular ‘Social Audits’ so as to
ensure transparency and accountability in the Scheme. In this regard,
sub-section (2) of section 32 of the NREGA, 2005 mandates that the
State Government can make rules of “any other matter which is to be,
or may be, prescribed, (wherein “prescribed” means prescribed by
rules made under this Act) or in respect of which provision is to be
made by the Central Government by rules”. To ensure transparency
and accountability at all levels in the implementation of the Scheme,
sub-section (3) of section 23 of NREGA, 2005 mandates that “The
State Government may, by rules, determine the arrangements to be
made for the proper execution of Schemes and programmes under the
Schemes to ensure transparency and accountability at all levels in the
implementation of the Scheme;

And whereas, it is intended that social audits are to be

conducted in an impartial and objective manner and that the findings
of the same may be presented without any dilution and action would
be taken to address the gap there of with an aim to strengthen the
scheme.

Accordingly, the following notification will be published in the

Extraordinary issue of the Andhra Pradesh Gazette, dated

PRELIMINARY NOTIFICATION

In exercise of the powers conferred by sub-section (1) of section

32 read with sub-section (3) of section 23 of the National Rural
Employment Guarantee Act,2005 (Central Act No:42 of 2005) and
sub-paragraph (14) of Paragraph 6 of Andhra Pradesh Rural
Employment Guarantee Scheme (APREGS) notified by the State

Government in G.O. Ms. No. 27, P.R. & R.D. (R.D.II) Dept., dt.
28.1.2006 read with sub-paragraph (16) of Paragraph 6 of the
modified NREGS. A.P. 13-12-2007 notified in G.O. Ms. No. 550, P.R. &
R.D. (R.D.II) Dept., dt. 6/12/2007, the Governor of A.P. hereby
makes the following rules to establish Social Audit as an open and

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inclusive Monitoring & Evaluation (M&E) tool under the National Rural
Employment Guarantee Act and also as a means to increase
transparency and accountability in administration.

2. Notice is hereby given that the matter will be taken into

consideration after the expiry of 60 days from the date of the
publication of this notification in the Andhra Pradesh Gazette and the
objection or suggestion if any, received before the expiry of the said
period will be considered by the Government of Andhra Pradesh,
Hyderabad.

3. Objections and suggestions should be addressed to the Principal

Secretary, RD Dept., Andhra Pradesh Secretariat, Hyderabad.

(1) Short Title

These rules may be called the National Rural Employment

Guarantee Scheme – AP Social Audit Rules, 2008.

(2) Definition

In these rules unless the context otherwise requires: -

(a) “Act” means the National Rural Employment Guarantee Act,

2005.(Central Act No.42 of 2005)

(b) “Civil Society” means any village community, non-official public

spirited group or individuals who expressed in writing an interest or
choose to participate in the public vigilance process in general and
Social Audit process in particular.

(c) “Social Audit of a Scheme” means auditing of a scheme by the

primary stakeholders of the Scheme or with the active involvement
of the primary stakeholders of the scheme. In this case the
labourers and rural communities of the Districts where National
Rural Employment Guarantee Scheme - AP, 2005 is being
implemented and audit includes verification of facts on ground vis-
à-vis official records taking into account the oral evidence as well,
and is in effect, aided and facilitated by civil society organizations
and/or Government.

(d) “Gram Sabhas” shall ordinarily mean a body consisting of

persons registered in the electoral rolls relating to a village
comprised within the area of Panchayat at the village level as
defined in the Constitution of India or A.P. Panchayat Raj Act, 1994
and rules made there under. However, for Social Audit purposes, it
can held the meeting of one ward, village or habitation constituting
residents of part of a panchayat.

(e) “Resource Persons” mean the persons who will carry out the
training and capacity building process for the Social Audit process.

(f) “Social Auditors” means the persons who facilitate the Social
Audit, at the habitation level.

(g) “Primary Stake Holder” means the labourer’s families and

labourers who have worked under the EGS, and residents of the
panchayats where the EGS works are being carried out.

(h) “Government” means the State Government of Andhra Pradesh.

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(i) “Notification” means notification published in the Andhra Pradesh

Gazette and the word “notified” shall be construed accordingly.

(j) “Programme Officer (PO)” means the Mandal Parishad

Development Officer

(k) “Mandal” means a community development area within a

District comprising a group of Gram Panchayats.

(l) “District Programme Coordinator” means the District Collector.

(m) “Implementing Agency” includes any department of the

Central Government or State Government, Zilla Parishad,
Panchayat at intermediate level, Gram Panchayat or any local
authority or Government or authorized by the Central
Government or the State Government- to undertake the
“implementation” of any work taken up under the NREGS

(n) “Minimum wage” in relation to any area, means the minimum

wage fixed by the State Government under section 3 of the
Minimum Wages Act, 1948 for agricultural labourers as applicable in
that area.

(o) “Social Audit on Government Orders / Memos / Executive

Instructions” means the orders issued by the Government of
Andhra Pradesh to indicate the process to be followed during a
Social Audit.

(p) “Ward Sabha” means the meeting held at the ward level defined
by the A.P. Panchayat Raj Act/Rules.

(q) “Social Audit Gram Sabha" is the special Gram Sabha to be

held at least once every six months for this purpose. (Gram Sabha
procedures regarding quorum, chair, announcement etc. would also
apply to the Social Audit Gram Sabha)

All words and expressions used but not defined in these rules have
meaning assigned to them under the National Rural Employment
Guarantee Act, 2005.
(3) The Social Audit Resource Base:
In order to provide support to the Gram Sabhas to carry out
the functions as described in the Act in sections 15 & 17, the State
Government shall facilitate a resource base in the following manner.
(i) A social audit unit which is independent of the mainstream
structure shall be responsible for coordinating the social audit
processes in the state. The Rural Development Commissionerate
shall enter into an MOU with the unit which will be headed by a
Government officer and consist of senior resource persons ,for
conduct of social audits.

(ii) Resource persons are drawn from Civil Society Organizations

who are having experience and worked on strengthening and
establishing people’s rights at the grass root level and who are
specifically trained in the social audit processes. They will be the
resource base at the State and District level for carrying out training
and capacity building in social audits on an ongoing basis.

(iii) Village Social Auditors are members from the Vigilance

Committee, as defined in the Act or of the labourers’ families or
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labourers themselves who shall be identified in an open Gram
Sabha, trained in Social Audit processes and who will carry out the
Social Audits and present the findings in the Social Audit Gram
Sabha. The process of identification and training is to be followed as
per the Government Orders, Memos and Executive Instructions
issued by the State Government from time to time.
(4) Timing of Social Audit :
(i) The Social Audits of the National Rural Employment Guarantee
Scheme in a mandal will be carried out at least once in every 6
months.
(ii) The schedule for conduct of social audits for a particular month
will be decided at the beginning of every month jointly by the social
audit teams and the district administration.
(5) Steps for conduct of the Social Audit process:
(i) Filing of Application for relevant official accounting or
non-accounting records:
An application will be filed before the Program Officer under the
Right to Information Act, 2005, for relevant information on the
Employment Guarantee Scheme in Form I at least a fortnight before
the Social Audit commences. The concerned officials shall provide
the required information within 7 days of the receipt of the
application without fail.
Details of information:
1.Shelf of Works.
2.GP resolution
3.Technical Estimation and Sanction (work wise)
4.Administrative Sanction
5.Work commencement order
6.Muster Rolls
7.Pay orders
8.Measurement sheets
9.Work done report
10.Material payment vouchers and bills
11.Consolidated Muster roll.
12.Final report.
(ii) Identification and training of Social Auditors:
Social Auditors shall be trained as per the Government Orders,
Memos and Executive Instructions issued by the State Government
from time to time
(iii) Social Audit process in the village:
The Social Audit of National Rural Employment Guarantee
Scheme in the village shall include:-
(a) Thorough verification of Muster Roll entry and payments made
in the time period specified for Social Audit by establishing contact
with the wage seekers whose names are entered in the muster
rolls;
(b) Work site verification;
(c) Focussed group discussions and holding of Ward Sabhas /
habitation meetings with the primary stakeholders including special
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meetings in the Scheduled Caste/Scheduled Tribe localities on
various aspects of the implementation of the National Rural
Employment Guarantee Scheme;
(d) Recording the written statements of the labourers on any issue
as well as filling of the Social Audit formats and writing reports will
be done;
(e) Holding ward and Gram Sabhas in the Gram Panchayat to elicit
information as well as read the findings of the Social Audit;
(f) Wherever possible, the latest local fund audit report or/ the
report of the audit department of the Gram Panchayat pertaining to
EGS works shall also be placed before the people attending the
Social Audit Gram Sabha. Audit objections shall be read out along
with compliance;
(g) Taking corrective action;
(h). The labourers and village community shall be informed about
the Social Audit Gram Sabha by the social audit teams as well as
the Administration to ensure full participation;
Creating awareness amongst the labourers about their rights and
entitlements under the Act will be an important part of the Social
Audit.
(iv) Mandal Social Audit Public Meeting:
(a) As a culmination of the social audit process ,after the Gram
Sabhas are held in all the villages a social audit public meeting will
be held at the mandal head quarters. The wage seekers, political
representatives, the official functionaries of the EGS and the media
may participate in the meeting. In the meeting, village wise Social
Audit findings will be read out wherever it is required. The public will
be encouraged to testify and the concerned official functionary shall
respond to each of the issues identified in the social audit by giving
a clarification or an explanation to the affected party and the public
as to why a certain action was taken or not taken. Further the
functionary will specify the time period and nature of action to be
taken by him/her to rectify a gap or a lapse in the implementation
as the case may be.
(b) Senior officials such as the District Program Coordinator or the
Additional District Program Coordinator as well as the Program
officer shall on each finding of the social audit exercise in cases of
gaps, lapses or deviations fix responsibility and take immediate
corrective or disciplinary action as prescribed from time to time by
the Government. In case of doubt or dispute on any issue, an
administrative enquiry shall be conducted and action taken
accordingly in the shortest possible time and in any case not later
than one month. An appropriate senior official shall conduct the
enquiry and dispose of the matter as per the norms prescribed by
the Government under the NREGS.
(c)The report of the Program Officer shall be communicated to the
Gram Sabha.

(6) Information on the Social Audit:

The Program Officer shall notify in writing all the Public

Representatives and also concerned staff implementing the National
Rural Employment Guarantee Scheme well in advance to ensure that
they are kept informed about the process and are present at the
Social Audit Gram Sabha as well as the Mandal level Public Meeting.

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(7) Independent Initiative of Social Audit:

Social audit must be viewed as an ongoing process of public

vigilance. Therefore, the statutory requirement of carrying out Social
Audits twice a year cannot preclude any independent initiative of
the wage seekers to carry out additional Social Audits as per the
demand of the wage seekers. Government agencies shall
endeavour to support such initiatives to the extent of providing
copies of records as soon as possible, attending the meetings and
taking action on the findings in the manner that is required for the
regular six monthly Social Audit Gram Sabhas.

Reports submitted in such a process shall form part of the

record, and shall be responded to by the implementing agencies.
Where shortcomings are found immediate action must be taken as
per these rules. The social audit report as well as the action taken
report must be placed before the next Gram Sabha.

(8) Role of Administration in the Social Audit Process:

The Social Audit will be a process independent of the

implementing agency and at no time prior to, during or post the
conduct of social audit shall there be an interference by the
administrative machinery at any level in the process. However,
complete cooperation shall be extended to the persons conducting
Social Audits. Specifically, the responsibility of the administration
would be to provide required information within the specified
period, to be present during the social audit gram sabha and the
public meeting and to take action on social audit findings as detailed
in the Government Orders / Memos issued from time to time.

(I) The Project Director/Additional Project Director:

a) Shall ensure that administrative machinery cooperates in the

required manner while conducting a social audit processes.

b) Shall attend the Social Audit Public Meetings as far as possible.

c) Shall ensure corrective action is taken on the Social Audit

findings.

d) Shall ensure that recoveries are facilitated, and in cases where

those who have indulged in embezzlement return the money.
Receipts shall be issued for the money returned. Money that ought
to have been paid to the wage seekers shall be paid to them within
seven days of recovery.
e) Shall ensure that the money recovered during the Social Audit
process is shown under a separate head in the NREGS – A.P.
accounts.
f) Shall ensure that stringent action including filing of FIR is taken
against any individual or group who has tried to deviate money and
resources, manipulate and sabotage the Scheme.
g) Shall ensure that in the case of the contracted NREGS-AP staff
who have been proven during the Social Audit process, to have
indulged in malpractice and deviation of the Scheme, stringent and
immediate action is taken, which includes filing of criminal cases and
termination of services.
h) Shall ensure that in case malpractice and deviation of the
Scheme by Government Officials action is initiated as per the Civil
Service Rules.

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(II) Program Officer and Additional Program officer:

a) Shall provide the information as requested about the scheme

within the stipulated period promptly (7 days in accordance to the
NREGA Operational Guidelines, 2005) period promptly.

b) Shall communicate in writing information regarding the Social

Audit process and date of the Social Audit Gram Sabha to the EGS
functionaries, public representatives and wage seekers on the SA
process.

(c) The MPDOs /Additional Program Officers along with the EGS
functionaries shall necessarily participate in the social audit public
meeting.

d) Shall take immediate corrective action on the issues arising out of

social audits and shall ensure that decisions taken during Social
Audit public meeting translate into administrative action.

e) Shall dispose off any dispute or complaint recorded in the Social

Audit report

f) Shall give access to the village social auditors and labourers’

representatives to attend the bi - weekly appraisal meetings and
apprise them of the action taken by the Administration.

9. Action on the Social Audit findings:

It is mandatory for the representatives of the implementing

agency to be present at the Social Audit Gram Sabha and shall
ensure that corrective action is taken on the findings and shall
implement the decisions taken at the Social Audit Gram Sabha
without fail and with utmost sincerity.

Any issue which is raised during a Social Audit or any item in the
Social Audit report that indicates a contravention of the Act or a
shortcoming in the implementation of National Rural Employment
Guarantee Act should automatically be interpreted as a "complaint"
under the Grievance Redressal Section of the National Rural
Employment Guarantee Act, 2005.

Where there is a dispute in the findings of the Social Audit the

administration shall cause an enquiry and shall decide on the issue
at the earliest and not later than one month;

Wherever, in the course of a Social Audit, if evidence, through

written and oral testimonies against those who have
misappropriated money is established, action shall be initiated for
recovery. This action for recovery shall be without prejudice to
action to be taken against the person under the relevant laws;
provided that wherever it is established that these irregularities /
extractions have had a direct relation to wage payments under
National Rural Employment Guarantee Act and the amount shall be
paid back to workers within a period of a week.

(10) Budget for the Social Audit Process:

The costs of establishing and running a Social Audit Cell and

conduct of social audits, shall be met from administrative costs
allowed for NREGS.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

K. RAJU,
PRINCIPAL SECRETARY TO GOVERNMENT.
 :8:
To
The Commissioner, Printing, Stationery and Stores Purchase(Printing
wing) Printing Press, Chanchalguda, Hyderabad with a request to
publish the Notification in the next issue of extraordinary Gazette and
furnish 1000 copies to PR & RD (RD.II) Department.
The Commissioner, Rural Development, Hyderabad.
The District Collectors and District Programme Coordinators of 22
NREGS-AP Districts.
The Project Directors, DWMAs and Addl. Dist. Programme
Coordinators of 22 NREGS, AP., Districts.
The Project Directors, DRDAs and Addl. Dist. Programme
Coordinators of 22 NREGS-AP., Districts.
The Chief Executive Officers, ZPs and Addl. Dist Programme
Coordinators of 22 NREGA, AP Districts.
The Project Officer, ITDA and Addl. Dist. Programme Coordinators of
Warangal, Khammam, Adilabad, Vizianagaram, Mahabubnagar,
Srikakulam and East Godavari,West Godavari and Visakhapatnam
Districts.
The District Panchayat Officers of 22 NREGS-AP Districts
The Mandal Development Officers through Chief Executive Officers of
22 NREGS-AP Districts.
The Panchayat Secretaries of Gram Panchayat through Dist.
Panchayat Officers of 22 NREGS-AP Districts.
The Commissioner, Panchayat Raj, AP., Hyderabad
The Commissioner, Tribal Welfare, AP., Hyderabad
The Commissioner, Social Welfare, AP., Hyderabad
The Managing Director, AP State SC Coop.Fin.Corpn.Ltd, Hyderabad
The Commissioner, AMR APARD, Rajendranagar, Hyderabad
Copy to:
The Executive Directors of District Scheduled Castes
Cooperative Societies Ltd (22 NREGS-AP Districts)
The Accountant General, AP, Hyderabad
The Director of Treasuries and Accounts, A.P. Hyderabad
The Special Secretary to Chief Minister.
PS to Minister (PR, RWS & EG).
PS to Chief Secretary to Government./Law(A)Department
PS to the Principal Secretary to Government (RD)./
The PR&RD (Genl)Department, (2 Copies).

//FORWARDED : : BY ORDER//

SECTION OFFICER.(FAC)
 Form-1

(under Rule (5)

APPLICATION FOR INFORMATION REGARDING
APREGS WORKS UNDER THE RTI ACT.
Date:

To

The Mandal Parishad Officer,

…………………Mandal,
…………………District.

Respected Sir,

Subject: Regarding Information pertaining to Works in Progress

in the Mandal under the APREGS.

Under Section 4 of the National Rural Employment Guarantee

Scheme, we request for information to be furnished regarding the
details of works that have been completed and those that are in
progress in the Mandal under the APREGS since its inception in a week
days time to conduct Social Audit in your Mandal
from……………….To……………… (dates).

We have provided the list in Annexure-I

With Regards,
Yours Sincerely,

Social Audit (Resource Person) R.D.

……………………. …… District.
Copies to:
1.P.D., DWMA …………..District
2. Director, APREGS, Hyderabad
3. Director, SPIU, RD, Hyderabad.

Annexure 1 to Form 1
Details of Information
1.Shelf of Works
1. GP resolution
3 Technical Estimation and Sanction (work wise)
4 Administrative Sanction
5 Work commencement order
6 Muster Rolls
7 Pay orders
8 Measurement sheets
9 Work done report
10 Material payment vouchers and bills
11 Consolidated Muster roll.
12 Final report.
 Form 2

To
Date:__________
The MPDO/ PO
APREGS,
____________ Mandal,
____________ District,
Andhra Pradesh.

Sir / Madam
Sub: APREGS – Conduct of Social Audit on works taken
up in Rural Employment Guarantee Scheme in the
mandal- request for relevant records. - reg

It is to inform that as it has been decided to conduct the social

audit on works undertaken in this mandal under APREGS from
____________ date to ________________ . Therefore it is requested
to handover the Xerox copies of all relevant records with in one week
under sub section (1) of section 4 of Right to Information Act, 2005.

Authorized signature