Completion of pending accounts, annual audits
Reiterates directions for early holding of BoDs meetings
Mohinder Verma
JAMMU, Mar 5: Taking serious note of ‘dilly-dallying’ approach in completion of pending accounts and conduct of annual audits, the Government today sought Action Taken Report from all the Public Sector Undertakings, Autonomous Bodies and Societies in a time bound manner. Moreover, directions have been reiterated for early holding of Board of Directors (BODs) meetings to take decision on important aspects relating to these bodies.
In its edition dated March 3, 2020, EXCELSIOR had exclusively reported that several Public Sector Undertakings, Autonomous Bodies, Societies and Companies have failed to meet the timeline fixed by the Government for settlement of their pending accounts despite being aware of the fact that this vital exercise is imperative to ensure financial discipline.
Moreover, it was reported that reconstituted Boards have yet not started convening meetings even after clear directives in this regard from the Finance Department, which were issued after the issue was debated a number of times in the meetings of the Committee of Secretaries headed by the Chief Secretary BVR Subrahmanyam.
In a communication addressed to all the Administrative Secretaries, Heads of Departments, Managing Directors and Chief Executives of the Public Sector Undertakings, Autonomous Bodies and Societies, Rajneesh Gupta, Additional Secretary to Government, Finance Department today drew their attention towards the Circular No.01-FD-BPE of 2020 dated January 29, 2020 and said, “I am directed to refer all heads of PSUs, Autonomous Bodies and Societies to share the status of the action taken on the instructions regarding review of annual accounts”.
Even directions have been reiterated for holding meetings of reconstituted Board of Directors of these PSUs, Autonomous Bodies and Societies as early as possible so that decision on pending important issues is taken for smooth functioning of these bodies.
Not only vide Circular No.01-FD/BPE dated January 29, 2020, the Finance Department had drawn the attention of all the Administrative Secretaries and heads of the PSUs and other bodies towards the necessity of completion of all the due statements of accounts and annual audits up to March 31, 2019 vide Government Order No.416-F dated August 23, 2019 and Circular No.17-F dated September 5, 2019.
“A clear direction was given to all the PSUs/organizations to complete their annual accounts after due audit. While some progress has been achieved, there needs to be more emphasis particularly in view of the fact that Advisory Committee would need annual accounts as on March 31, 2019 as well as October 30, 2019 for the purpose of apportionment of assets and liabilities between Union Territory of Jammu and Kashmir and Union Territory of Ladakh”, the Finance Department had mentioned in the circular of January 29, 2020.
The course of action conveyed to Administration Secretaries and heads of Public Sector Undertakings, Autonomous Bodies and Societies vide Circular No.01-FD dated January 29, 2020 had the approval of the Lieutenant Governor Girish Chandra Murmu.
As per this course of action, all the PSUs, Autonomous Bodies and Societies were supposed to complete their pending accounts in any case before the end of February 2020. Moreover, there were instructions for constitution of Boards wherever the same were not constituted.
Even the first meetings of the reconstituted Board of Directors of the PSUs, Autonomous Bodies and Societies were to be convened before February 15, 2020 and the list of Directors on the Board of Directors updated with Registrar of Companies.
“The Government of Union Territory of Jammu and Kashmir wants to make accounts of these bodies up-to-the-date so that at the end of every financial year true picture about the financial viability of these bodies is drawn by the Finance Department”, sources said.
They further said, “in the absence of settled accounts and their audit it is difficult rather impossible to ascertain whether the investments and expenditure incurred have been properly accounted for and whether the purpose for which the amount was invested had been achieved or not”.
It is pertinent to mention here that Comptroller and Auditor General of India has on numerous occasions laid stress on settlement of pending accounts of PSUs, Autonomous Bodies and Societies but repeated directions of Finance Department and now issuance of circular seeking action taken report clearly indicate that due attention is yet to be paid.
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