J&K fails to submit 1769 Utilization Certificates involving Rs 1315 crore

*Rs 369 cr supplementary grants given without requirement

Mohinder Verma
JAMMU, Apr 2: Financial rules are being violated with impunity by various autonomous bodies and departments in Jammu and Kashmir right under the nose of those bureaucrats, who otherwise are required to play key role in ensuring sound financial reporting with relevant and reliable information.
This can be gauged from inordinate delay in submission of huge number of Utilization Certificates worth thousands of crores of rupees, expenditure of huge amount under various heads without Budgetary Provisions and grant of unnecessary supplementary grants to the tune of Rs 369 crore to three departments.
Making these revelations in its latest report, the Comptroller and Auditor General of India said that autonomous bodies/ authorities not having sufficient resources of their own are assisted financially by the Government through release of Grant-in-Aid to be spent on specific purposes.
The State provided Rs 3159.05 crore Grant-in-Aid to Srinagar Municipal Corporation, Jammu Municipal Corporation, Urban Local Bodies of Kashmir and Jammu, Sher-e-Kashmir Universities of Agricultural Sciences and Technology, Kashmir and Jammu Universities, J&K Sports Council, J&K Academy of Art, Culture and Languages, Institute of Management and Public Administration, Khadi and Village Industries Board and others from financial year 2009-10 to 2013-14.
Financial Rules provide that for the grants provided for specific purposes, Utilization Certificates should be obtained by the departmental officers from the grantees. After verification, these should be forwarded to the Accountant General within 18 months from the date of their sanction unless specified otherwise.
However, the CAG has revealed that 1769 Utilization Certificates involving Rs 1315.72 crore were outstanding as on March 31, 2014 of which 1132 UCs amounting to Rs 1004.48 crore were outstanding for more than one year.
There was delay of one year in submission of 637 UCs involving Rs 311.24 crore. Similarly, in respect of 171 UCs worth Rs 375.39 crore, there was delay of one to two years. The delay in respect of 961 UCs involving Rs 629.09 crore was over two years, the CAG said.
Moreover, the CAG has pointed out that in five cases supplementary grant of Rs 369.02 crore was obtained in excess of the original provision in anticipation of expenditure. However, the final expenditure of Rs 678.77 crore was even less than the original grant of Rs 1039.41 crore.
“The savings of Rs 729.66 crore, thus, exceeded the entire supplementary provision”, the CAG said, adding “this indicates inadequate system of fund projection leading to unnecessary allotment of additional funds”. These unnecessary supplementary grants were provided to the Parliamentary Affairs, Housing and Urban Development and Forest Departments.
As per the Budget Manual, expenditure should not be incurred on a scheme/service without provision of funds. However, it was noticed during the audit that expenditure of Rs 13.13 crore was incurred without any provision in the original estimates/supplementary demand and without any re-appropriation orders to this effect.
Similarly, as per rules of J&K Financial Code, every drawing officer has to certify in each abstract contingent bill that detailed bills for all contingent charges drawn by him prior to the first of the current month have been forwarded to the respective controlling officers for countersignature and transmit the same to the Accountant General.
However, the CAG has detected that against a total amount of Rs 2621.48 crore drawn on AC bills by DDOs during 1995-2004, corresponding DC bills were not submitted to the Accountant General. “Out of AC bills amounting to Rs 986.83 crore outstanding in respect of 2013-14, AC bills amounting to Rs 644.56 crore were drawn in March 2014 alone. Out of this, Rs 108.08 crore were drawn on the last day of the financial year”, the report said.
Stating that non-rendition of DC bills for such a huge amount over a very long period is fraught with the risk of misappropriation, the CAG said, “reasons for non-settlement of the outstanding AC bills may be investigated and action initiated for immediate settlement”, adding “this requires constant monitoring by the concerned DDOs”.
The CAG has regretted that matter has continuously been brought to the notice of the Finance Department from time to time but despite issuance of instructions in this regard, the DDOs did not furnish the pending DC bills to the Accountant General.

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