Value addition to public governance by the CAG - Digitisation and technology in governance

The case studies in this section illustrate the transformative role of digitisation and technology in enhancing audit effectiveness, strengthening financial controls, and improving governance outcomes across diverse sectors and levels of government. They cover a wide range of initiatives such as implementation of ERP-based financial systems, Direct Benefit Transfer (DBT) safeguards, and real-time inventory management platforms, to advanced applications of data analytics, artificial intelligence, and remote–hybrid audit models. These cases span Union and State Governments of Maharashtra, Assam, Odisha and West Bengal. They demonstrate how technology-enabled interventions have addressed systemic weaknesses in areas such as payment processing, beneficiary targeting, revenue collection, drug supply chains, and establishment expenditure audits. Collectively, these examples highlight how audit insights have driven system redesign, integration of digital platforms, automation of controls, and adoption of data-driven approaches. These measures have resulted in improved accuracy, enhanced transparency, prevention of financial leakages, strengthened compliance mechanisms, and more scalable, efficient, and evidence-based audit processes in an increasingly digital governance environment.

ERP-Based Financial Control Systems, West Bengal Housing Infrastructure Development Corporation (WBHIDCO)

A review of contractor payments processed through the ERP platform SAP and Suite 4 – High Performance Analytic Appliance (S/4HANA) by West Bengal Housing Infrastructure Development Corporation Ltd revealed critical gaps (deficiencies in the validation logic, failure of preventive system checks, and inadequate quality assurance processes during ERP implementation) in system controls. Following the intimation by the office of the Principal Accountant General (Audit-I) West Bengal, an enquiry was conducted, and the developer of the ERP system submitted a report. Corrective action resulted in full recovery of ₹3 crore that had been erroneously paid to vendors, preventing financial loss to WBHIDCO.

Highlights

• ₹3 crore recovered from erroneous payments made to vendors, preventing financial loss to WBHIDCO
• Stronger payment controls: System improvements enhanced reliability of the Automated Payment Module and reduced risk of duplicate payments
• Enhanced financial governance: Improved ERP financial control environment, digital accountability, and assurance of accurate and secure automated payments

SDGs