Introduction
It’s the first of the 16 SAS which will become effective once posted by ICAI. As the name suggests the SAS focusses on providing the Social Auditor (SA) guidance and knowledge on impact assessment engagements in the area “Eradicating hunger, poverty, malnutrition and inequality”. The SAS provides glimpse of process and evaluation methodologies which the SA can partake in.
This article explores the recently introduced Statement on Auditing Standards (SAS) that focuses on social audit and impact assessment engagements in the context of eradicating hunger, poverty, malnutrition, and inequality. The SAS serves as a guide for Social Auditors (SAs), equipping them with the necessary knowledge and methodologies to conduct effective impact assessments. By providing insights into the process and evaluation techniques, this SAS empowers SAs to contribute meaningfully to addressing critical social issues.
Understanding the Process of Social Audit:
The SAS sheds light on the crucial aspects of the data collection process for impact assessment assignments. SAs are advised to approach various stakeholders, including direct beneficiaries, immediate family members, contractors/suppliers, funding entities, government agencies, monitoring agencies, and key program officials. This comprehensive data collection enables SAs to gain a deeper understanding of the engagement. Furthermore, the article emphasizes the importance of conducting physical inspections and one-on-one interviews to obtain firsthand insights.
The SAS provides perspicuous insight on whom the SA should approach in the process of data collection for its impact assessment assignment which shall include but not limited to:
Direct beneficiaries
> Immediate family members of the direct beneficiaries
> Contractors/Suppliers
> Funding entities, Government (at block, district, state and national levels, as relevant) and related institutions
> Monitoring Agency
> Key program officials of the entity etc.
Data collected should be filtered and reviewed by the SA to gain a deep knowledge of the engagement. Data check examples may include:
- Details of meals provided indicative of nutritional content e.g. Under National Food Security Act 2013 (NFSA), Mid-day meal programs, Poshan Abhiyaan, National Nutrition Mission, etc.
- Subsidised/Free food rations provided indicative of nutritional content
- Cash subsidy/assistance provided
- Nutrition programs conducted
- Job opportunities provided e.g. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) etc.
- Awareness campaigns conducted
Post data review SA should conduct physical inspection and have one on one interviews to get a first-hand grip of the assignment.
Once all the data reviews and personal interviews are over the SA can start formalising his response to the pertinent questions involving the assignment. These can be:
- Did the target people receive the benefit?
- Whether there was a decline in starvation rate.
- Whether there was an improvement in nutritive value.
- Whether employment opportunities were generated.
- Did the number of Below Poverty line (BPL) holders reduce?
- Did the standard of living improve?
- Whether census or National Family Health Survey (NFHS) data indicates reduced cases of malnourishment.
- Was there a reduction in number of patients and/or increase in reporting due to greater awareness?
Key Metrics: Framing and Assessment:
To effectively assess the performance of the social enterprise under audit, SAs are required to develop key metrics or performance indicators. These metrics encompass both qualitative and quantitative evaluation criteria. Quantitative criteria may include the number of meals provided, quantity and nutritional value of food distributed, beneficiaries covered under relevant acts, employment generation, poverty reduction, and other related factors. On the other hand, qualitative criteria focus on assessing improvements in economic conditions and identifying challenges and obstacles in project implementation. Examples of these criteria are:
Quantitative Criteria
Eradicating hunger, poverty, malnutrition and inequality
1 Number of meals provided to infants, adults, BPL card holders, marginalised groups etc. disaggregated by 2 Quantity of meals distributed (in kgs.) to infants, adults, BPL card holders etc.
3 Nutritional value distributed (e.g. calories, carbohydrates, fats, proteins, vitamins etc.)
4 Number and value of free food rations/subsidised food distributed
5 Number of beneficiaries covered under National Food Security Act (NFSA), 2013
6 Number of children under five years who are underweight or stunted
7 Number of pregnant women in the age group of 15-49 years/adolescents aged 10-19 years who are anaemic
8 Details of cash subsidies/assistance provided
9 Number of jobs created under various schemes to males, females, BPL card holders etc.
10 Wage distribution to males, females, BPL card holders etc. through jobs created
11 Number of persons provided employment vs. persons who demanded employment under MGNREGA
12 Percentage of the population (out of total eligible population) receiving social protection benefits under Pradhan Yojana (PMMVY)
13 Percentage of households living in pucca houses
14 Percentage of population living below the national poverty line
15 Institutional mechanisms created or strengthened at the beneficiary level for ensuring accountability in planning sustainability of results
(B) Qualitative Criteria
1 Improvement in Economic conditions – Increased standard of living may be used to assess the improvement
Understanding the challenges/Obstacles in implementing Social Projects for eradicating hunger, poverty, malnutrition and inequality
Understanding the issues face in practical implementation of any project is highly important and areas in which the social project can improve based on answers provided by the direct participants helps influencing the SA in his Social Impact Assessment.
Limitations:
Like any other audit, social audit has inherent limitations. The SAS acknowledges these limitations, particularly in relation to eradicating hunger, poverty, malnutrition, and inequality. Challenges such as incomplete or incorrect evaluation sheets and difficulties in contacting direct beneficiaries are common. It is important for SAs to recognize and report these limitations in their audit reports.
Conclusion : In conclusion, the SAS discussed in this article addresses one of the most pressing issues in our society. By providing guidance on the process, challenges, and limitations of social audit engagements, it equips SAs to contribute effectively to social impact assessment. However, it is crucial for SAs to exercise their judgment and adapt their approach to the unique circumstances of each engagement. As the world of social audit continues to evolve, SAs play a vital role in driving positive change and addressing societal challenges.
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