CAG pulls up U'khand govt for non-submission of utilisation certificates

The CAG has pulled up various government departments in Uttarakhand for delaying submission of utilisation certificates, saying their absence made it doubtful if the grants were utilised for their intended purpose.

The report of the Comptroller and Auditor General (CAG) on the state's finances for 2016-17, laid in the state assembly at Gairsain on the last day of the budget session yesterday, cites a number of irregularities in the financial management of the state during the period.

Pulling up the government departments for their tendency to delay submission of utilisation certificates (UCs), it said a total of 353 utilisation certificates amounting to Rs 490.04 crore were pending till March 2017.

"Of these, 211 UCs involving Rs 303.25 crore were pending for a period up to two years and 142 UCs involving Rs 186.79 crore were pending for more than two years. However, due date of 129 utilisation certificates amounting to Rs 162.69 crore falls between April 2017 and March 2018.

"Thus the departmental officers did not submit 224 UCs due for submission by March 2017 in respect of which grants amounting to Rs 327.35 crore were given up to March 2016 for specific purposes," the CAG stated in the report.

"In the absence of UCs, it could not be ascertained whether the recipients had utilised the grants for the intended purpose for which these were sanctioned," it said.

Citing other instances of fiscal indiscipline, it said the department heads were not submitting to accountant general (audit) Uttarakhand statements of autonomous institutions and other entities to which loans worth Rs 10 lakh or more had been extended.

In the absence of such statements, institutions which attract an audit by the CAG could not be identified properly, it said.

Significant amounts of expenditure and receipts are booked under the Minor Heads '800-Other Expenditure' and '800-Other Receipts' instead of distinct heads of account, the CAG report said, adding it "adversely affected transparency in financial reporting".

It also advised the state government to ensure timely submission of utilisation certificates and statement of accounts by all autonomous bodies and other entities that receive grants or loans to maintain accountability.

"The government may ensure transparency in financial reporting by separately depicting the receipts and expenditure of major schemes rather than including them under the Minor Heads '800-Other Expenditure' and '800-Other Receipts' across various major heads," it said.