Social Audit is the examination and assessment of a programme/scheme conducted with the active involvement of stakeholders. Social Audit is recognized as a powerful tool to ensure transparency, accountability, and public participation in Government Schemes. MGNREGA was the first act to mandate that Gram Sabhas shall conduct Social Audit of all the works taken up under the scheme in the Gram Panchayats. Subsequently, Audit of Scheme Rules 2011and Auditing Standards for Social Audit 2016 laid out a clear pathway to establish the Institution of Social Audit uniformly across the country. Accordingly, Social Audit Units (SAUs) were set up in all the States to facilitate Social Audit by the Gram Sabha.  The Social Audit Unit (SAU), Himachal Pradesh was established in the year 2016 with the primary mandate of conducting independent social audits under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). It was registered as a Society under the Himachal Pradesh Societies Registration Act, 2006. It started conducting social audits in all the Gram Panchayats in the State in the year 2017. Since then, the Institution has emerged as an important pillar of transparency, accountability, and participatory governance in rural development programmes.

Since its inception, the Social Audit Unit has evolved from conducting audits under its parent scheme, MGNREGA, to becoming a broader accountability mechanism for several flagship schemes of the Government of India such as PM-POSHAN Shakti Nirman(Midday Meal Scheme), PMAY(G), PMAGY, NSAP, BOCWB schemes and schemes of the Department of Social Justice. National Food Security Act, 2013 and the Right of Persons with Disabilities Act 2016, also give the mandate of conducting social audit of these schemes through the duly constituted SAUs in each State. The existing mandate has been extended to SAUs in the States to conduct the social audit of schemes under Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Grameen) Act 2025 (VB-G RAM G), the scheme which replaces the erstwhile MGNREGA w.e.f 1st July 2026. Through a structured process of public verification, record examination, field verification, community participation, and Social Audit Gram Sabhas, the Unit has strengthened citizen oversight over public expenditure and service delivery.

Over the years, the Social Audit Unit has expanded its scope and institutional capacity to conduct social audits of multiple development programmes, ensuring that implementation remains aligned with the principles of transparency, inclusiveness, and responsiveness. The Unit has played a significant role in identifying implementation gaps, promoting corrective action, enhancing public awareness regarding entitlements, and improving governance outcomes.

Today, the Social Audit Unit stands as an important instrument of democratic accountability in Himachal Pradesh, empowering communities to participate directly in planning, monitoring public programmes, and contributing towards more transparent, efficient, and people-centric rural development.