Non-submission of UCs

Non-submission of Utilization Certificates or their delayed submission is normally considered as financial irregularity if we strictly interpret the financial rules. What is Utilization Certificate? Let us be clear that UC is not something like policing the recipients of Government funding nor is it a stick to beat the defaulter with as is general impression. Submission of UC for the expenditures incurred by a State Organization or an Autonomous body or authority is an important financial exercise to assess the level of development reached and the portion of development still pending. According to financial rules a recipient agency is supposed to submit the UC within 18 months of the receipt of funding. Non-submission of UC is infringement of financial rules and naturally will call for necessary action.
Our State does not have a satisfactory record of submission of UC to the source wherefrom funding has been received. This is despite the fact that reminders are repeatedly sent by the funding agency. Another dimension of this phenomenon is that let alone the Government departments and organizations, even the autonomous bodies and authorities which receive  financial support under Grant-in-Aid scheme, too, fail to submit the UC for the funds provided to them. It has to be understood that there are autonomous organizations which need to be partially supported in order to run in the larger interests of the State and its people. The discouraging and rather objectionable scenario is that the Government seems to be soft paddling with these autonomous bodies and authorities by not warning them strictly that in case of non submission of UC, the next instalment of Grant-in-Aid support will not be released. Contrary to it, the Government continues to release instalments while it is a year or two years or three years that the autonomous bodies have failed to submit the UC. Surprisingly, among the autonomous bodies and authorities there are some premier institutions that have defaulted not for one or two years but for several years yet they continue to receive fresh instalments unhindered. This has led to the development of a culture in our State with these autonomous bodies in which they think that submission of UC is something superfluous and should be avoided. Obviously, they feel no compulsion to observe the financial rules, procedures and directives. Including among the defaulting autonomous organizations are very conspicuous ones like the autonomous bodies and authorities which are receiving Grant-in-Aid but defaulting in furnishing timely Utilization Certificates to the Government are Srinagar Municipal Corporation, Jammu Municipal Corporation, Department of Urban Local Bodies, Sher-e-Kashmir University of Agricultural Sciences and Technology-Jammu as well as Kashmir, Kashmir and Jammu Universities, J&K State Sports Council, J&K Academy of Art, Culture and Languages, Institute of Management and Public Administration (IMPA) and Khadi and Village Industries Board.
The point is that non submission of UC is becoming a serious problem and with the passage of time it is going to become very complicated one. Already a number of Central Ministries or organizations have informed the State Government that they have decided to stop release of grants as long as UCs are not forthcoming and grants have been frozen. We think that the Central Government is not happy with a decision of suspending the release of grants because that means obstruction in timely completion of developmental projects.  Therefore, the State Government must concentrate on finding a solution to the problem. Perhaps it might be advisable to constitute a Standing Monitoring and Assessing Committee at Cabinet level with instructions to conduct fortnightly or monthly inspection of the projects, maintain a diary of progress in the work and utilization status of the funds provided. In case an organization shows recurring efficiency in either the completion of the project or maintenance and furnishing of updated account of expenditure, then the matter would be referred to proper administrative authority for further action. Why should the sub-mission of UC be left till the last day and why not have interim reports that would be compiled at the end.

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