2. 1X th MEETING OF THE INTOSAI WORKING GROUP ON ENVIRONMENTAL AUDITING AT BRASILIA 30 MAY 2 JUNE 2004 AUDIT THEME: BIOLOGICAL DIVERSITY SAI INDIA ’ S PAPER PRESENTED BY KP. SASIDHARAN

3. BASIC FACTS ON INDIA Seventh Largest Country in the World – 3.29 million Square Km – 1 Billion People Federal Democratic System of Government Specific Provisions in the Constitution for Environmental Protection Various Legislations and Regulatory Bodies and Implementing Agencies for Environmental Protection and Pollution Control

4. SAI India – C & A G of India Mandate and Jurisdiction for Environmental Auditing – Regularity Audit (Financial and Compliance) and Performance Audit Specified in C&AG ’ s (Delegation and Power and Control) Act Enacted Under the Constitution Conducted Environmental Auditing on Pollution of Air, Water and Noise, Biological Diversity, Waste Management During 2001-03 SAI India conducted 77 Environmental Audits

5. SAI REPORT ON GANGA ACTION PLAN Report of the C & AG of India on GANGA ACTION PLAN (GAP ) Submitted to Parliament in Dec 2000 Action Taken Report – October 2001 Public Accounts Committee ’ s Report n GAP with Recommendations to the Government February 2004 Action Taken Report from Government on PAC Recommendations – Expected in 2004

6. GANGA ORIGINATES AT GANGOTRI

7. FLOW OF GANGA

8. PICTURES OF GANGA

11. RATIONALE FOR SELECTION OF GAP Major River Basin – Life Sustainability of 40% of Indian Population World Bank Estimated – Loss of US $ 80 Billion Annually on Account of Sickness and Death Attributable to Pollution and Resource Degradation Cost of the Programme US $ 550 Million Water has become unusable, non drinkable, and even unsuitable for irrigation

12. GANGA AND ITS TRIBUTARIES Ganga Originates from the Himalayas – Altitude 4100 meters and Traverses 2525 Km More than 100 Cities and Towns on the Banks Sewage, Industrial Effluents, Hazardous Chemicals, Substances Even Unsuitable for Irrigation Due to Pollutants Ganga and Its Tributaries Flow Along 6 Large Provinces of India To Improve Water Quality Suitable for Bathing Core & Non-core Schemes, Sewer Lines, Sewage Treatment Plants, Low Cost Sanitation, River Front Development, Construction of Electric Crematoria

13. SCOPE OF AUDIT Extends to Audit of Government of India (Ministry of Environment and Forest) and 6 Provincial Governments, Regulatory Bodies and Implementing Agencies Evaluation of Progress of Implementation of GAP – All Projects/Schemes Under the Programme Period of Audit 1994 – 2000 To Frame an Audit Opinion as to how far it Could Achieve its Objectives

14. OVERALL AUDIT OBJECTIVES Were the Projects/Schemes framed with a view to translating the policy intent within the given time frame and cost Had the programmes been undertaken to contain pollution of river Ganga and its tributaries delivered the desired results within the given time and cost

15. SUB-OBJECTIVES INCLUDE: Adequacy of planning to translate policy objectives into action programme Consideration of relevant aspects of pollution in the programme design- industrial and domestic effluents Procedure adopted in identification of polluting towns Availability of data Performance of commissioned schemes Monitoring mechanism Financial aspects Water quality reports Parameters for classification Mapping of towns

16. AUDIT PLAN Workshop of All Audit Teams Decide Audit Plan, Strategy, Methodology, Time Frame, Evidence Collection and Reporting Midyear Appraisal of Audit Work to Review the Progress Determining Audit Objectives, Sub-objectives and Evidence Collection Issue of Detailed Audit Guidelines Specifying Time Frame for Completion

17. AUDIT RESULTS GAP met only 39% of its objectives Heavy shortfalls in achievements of targets of creation of assets and facilities Most of them did not function fully or partially for variety of r No mechanism to estimate the sewage generated by towns Poor public participation No time frame for submission of Detailed Project Reports fixed GAP 1 was incomplete even after 10 years Unsatisfactory operation and maintenance of assets created Financial mismanagement, diversion of funds, misuse and Un- utilization of funds

18. IMPACT OF AUDIT Action Taken Report Submitted by the Government to the Parliament Reasons and causes for delay and improper execution explained Lack of experience of imple. Agencies, funding issues, delay in land acquisition, litigation, contractual disputes, diversion of funds, poor availability of electricity Instructions issued for corrective/remedial actions – need for effective monitoring

19. Resolutions by National River Conservation Authority (NRCA) Higher priority for river cleaning Holistic and integrated approach to address river pollution Proper operation and maintenance of assets Cost sharing by federal/states governments, local bodies and the public Massive educational and awareness campaigns to be launched by federal and states governments Plan for operation and maintenances

20. Recommendations of the Parliamentary Accounts Committee PAC examined the report of the SAI Gathered evidence and confirmed audit findings Submitted its report expressing its displeasure and demanding Action Taken Report (2004) Monitoring committees at every level-NGOs/Citizens River regulation zone under an autonomous body Need to take up non core schemes Punitive action Water quality parameters

21. APPROACH AND METHODOLOGY Comprehensive audit with Regularity and Performance framework Conducted simultaneously in coordination with central/states audit personnel Workshops, Mid term appraisal and regular monitoring of progress of audit Review of documents, files, laboratory reports, research study Field visits, discussion, interviews Examination of budget, funding pattern, execution of work, operation & maintenance

22. LESSONS LEARNED Effective coordination and teamwork in conducting audit of mega projects Importance of effective planning, adoption of methodology, monitoring of audit work for timely completion Gained experience in conducting EA on mega project Need for technical knowledge, knowledge sharing, capacity building innovative audit methodology Significant programme helped prompt government response and action

23. CHALLENGES Inadequate resources, Lack of trained manpower Lack of adequate knowledge, skills and expertise on environmental auditing Need for incorporating Environmental Perspectives in Accounting and Auditing Standards How to make EA as an instrument of sustainable development Need to innovate and adapt EA techniques and methodology for specific projects

24. POSSIBLE CONRIBUTIONS OF WEGA Mainstreaming environmental concerns in SAI Audits Sharing of experience and learning from each other Guidelines, standards, methodology and techniques for integrated EA of river,lake etc Incorporation of environmental perspective in all SAI audits, even if it is not directly an environmental theme More Seminars, Workshops, training for capacity building and knowledge sharing