It is the first in country and aims to set global standards for auditing local governance bodies.

About iCAL

• Collaborative platform for policymakers and auditors and would serve as a centre of excellence for capacity building of auditors. 
• Enhance independence of local government auditors to ensure improved financial performance assessment, and service delivery.
• Act as a knowledge centre and think-tank for addressing governance issues at grassroot levels. 

Need for iCAL in India

• To enhance collaboration among 2.5 lakh panchayats and 8,000 Urban Local Bodies (ULBs), and exchange knowledge, promote best practices etc. (CAG)
• Aligned with Global practices as 40 countries have their respective Supreme Audit Institutions (SAI). 
• Inefficiencies in fund utilization, as most municipalities do not use their audited financial statements for cash flow management. (RBI) 

Current auditing mechanism of Local Bodies

• Through Examiner of Local Fund Accounts (ELFA) or Director of Local Fund Accounts (DLFA) in most states.
  • It audits utilization of funds granted by state government to local bodies. 
• Audit is also done by other institutions like Comptroller and Auditor General (CAG).
  • CAG exercises control and supervision over proper maintenance of accounts and auditing for all three levels of PRIs/ULBs. 
  • CAG advises and supports ELFA/DLFA.