Delay entails possibility of fraud, misappropriation of funds
*Matter taken up time & again but no positive results: CAG
Mohinder Verma
JAMMU, Apr 14: Unbelievable it may sound but it is a fact that 56 Autonomous Bodies in Jammu and Kashmir and Ladakh have failed to submit their accounts for audit during the past several years even after receiving substantial funding from the Budget and this has been dubbed as serious financial irregularity by the Comptroller and Auditor General (CAG) of India.
A total 811 number of annual accounts of 56 Autonomous Bodies to be audited under Section 14 of the CAG’s (DPC) Act 1971 were awaited from these Autonomous Bodies as on October 2019. The matter has been taken up with these bodies time and again for submission of annual accounts for audit but there was no positive development, said the supreme audit institution of the country in its latest report.
The certification audit of accounts of Autonomous Bodies set up by the State Government is conducted under Section 19(3) and 20(1) of Comptroller and Auditor General of India (DPC) Act 1971. These bodies are required to submit the annual accounts to audit before June 30 every year. However, in respect of 10 Autonomous Bodies which were to render annual accounts to CAG, 84 accounts were not rendered for the period ranging between one to 24 years.
These 10 Autonomous Bodies are Ladakh Autonomous Hill Development Council, Leh; Ladakh Autonomous Hill Development Council Kargil; Compensatory Afforestation Management and Planning Authority (CAMPA), Sher-e-Kashmir University of Agricultural Sciences and Technology-Srinagar and Jammu; Employees Provident Fund Board, Srinagar; Jammu and Kashmir Housing Board; Khadi Village and Industries Board; Building and Other Construction Workers Welfare Board and State Legal Services Authority.
The LAHDC, Leh has failed to submit accounts for audit since its inception—1995-96, although substantial sums are being released to the Council and unspent balances at the end of the year remain credited in a non-lapsable fund, the CAG said, adding “same is the position in respect of LAHDC, Kargil which came into existence in the year 2004-05 and the accounts are in arrears since inception”.
The Compensatory Afforestation Management and Planning Authority (CAMPA) has also not submitted the accounts for audit since its inception–November-2009. Similarly SKUAST, Kashmir, SKUAST, Jammu, EPF Board, Srinagar, KVIB, BOCWWB and SLSA have also not submitted their accounts for audit for the period ranging between one to nine years.
“Non-submission/delay in submission of accounts by these Bodies receiving substantial funding from the Budget is a serious financial irregularity persisting for years”, the CAG said, adding “in view of this non-compliance, the audited accounts of these Statutory Bodies have not so far been presented to the State Legislature, as required under the Statutes under which these Bodies were created”.
The delay/arrears in finalization of accounts carries the risk of financial irregularities going undetected and entails possibility of fraud and misappropriation, the audit institution said and stressed that the Government should take up the matter with these Bodies for timely preparation and submission of accounts.
Among other Autonomous Bodies whose annual accounts are awaited include Srinagar Municipality, Kashmir University, Sher-e-Kashmir International Convention Centre (SKICC), Srinagar Development Authority, Jammu Development Authority, Lakes and Waterways Development Authority, Academy of Art, Culture and Languages, J&K Pollution Control Committee, Jammu and Kashmir Sports Council, Jammu and Kashmir Energy Development Agency, Tourism Development Authorities and Royal Spring Golf Course.
About the audit of Companies/Corporations of Jammu and Kashmir, the CAG said that accounts in respect of only three companies were audited up to 2018-19 and in respect of one company and one Corporation accounts were audited up to 2017-18. In respect of 17 Companies/Corporations audit of accounts is in arrear for the period ranging between 5 to 19 years.
Audit of J&K State Forest Corporation was entrusted in 1996-97 but Corporation has never submitted its account. J&K Medical Supplies Corporation Ltd was incorporated in March 2014 and it has also never submitted its accounts. In absence of timely finalization of accounts, results of the investment of the Government remain outside the purview of State Legislature and escape scrutiny by audit.
“Consequently, corrective measures, if any, required for ensuring accountability and improving efficiency cannot be taken in time. Risk of fraud and mis-utilization of public money cannot be ruled out”, the CAG said, adding “the Heads of Departments should ensure that the departmental undertakings prepare such accounts and submit the same to the Accountant General (Audit) within a specified time frame”.
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