*SMC, JMC, ULBs, Varsities among defaulting authorities
Mohinder Verma
JAMMU, July 15: State Government is not only dilly-dallying on submission of Utilization Certificates for the financial assistance being provided by the Union Government under different schemes but is also paying non-serious attention towards obtaining such certificates from different autonomous bodies despite giving them Grant-in-Aid worth several thousand crores of rupees. In this way, the Government is leaving enough chances for either mis-utilization or mis-appropriation of the funds.
The autonomous bodies and 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. As per the financial rules, these bodies and authorities are required to regularly and timely furnish Utilization Certificates to the Government so as to ensure complete transparency and accountability in utilization of financial assistance.
Moreover, a sound internal financial reporting with relevant and reliable information significantly contributes to efficient and effective governance by the State Government. Even compliance with financial rules, procedures and directives as well as the timelines and quality of reporting contributes to good governance.
Financial rules clearly state that for the grants provided for specific purposes Utilization Certificates should be obtained by the departmental officers from the autonomous bodies and authorities and after verification these should be forwarded to the Accountant General, J&K within a period of 18 months from the date of their sanction unless specified otherwise.
However, the prevailing situation clearly indicates that on one side these autonomous bodies and authorities are blatantly violating the financial rules and on the other side the Government is reluctant to play its role in obtaining Utilization Certificates even after providing Grant-in-Aid worth several thousand crores of rupees.
As per the official figures, a total of 924 Utilization Certificates involving Rs 3477.47 crore were outstanding as on March 31, 2016 of which 657 Utilization Certificates amounting to Rs 1864.65 crore were outstanding for more than one year.
A total of 267 Utilization Certificates for an amount of Rs 1612.82 crore were outstanding for one year while as 314 UCs for an amount of Rs 919.68 were outstanding for two years. Similarly, 343 UCs involving an amount of Rs 944.97 crore were outstanding for more than two years.
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.
“It is a matter of serious concern that on one side the State Government is soft-paddling on submission of Utilization Certificates to different Union Ministries for the financial assistance being provided under different schemes and receiving sharp criticism on the other side it is not taking any interest in ensuring strict compliance to the financial rules by the autonomous bodies and authorities”, official sources regretted.
They further said, “either the Government should scrap the financial rules or take necessary steps for their strict compliance by each and every department and autonomous bodies”, adding “autonomous status doesn’t mean that such bodies and authorities enjoy the powers to blatantly violate financial rules. After all, the Grant-in-Aid being given to them is the taxpayers’ money and they are supposed to furnish details of utilization”.
Not only on furnishing Utilization Certificates to the Government, several autonomous bodies are even not submitting annual accounts to Accountant General for audit. Ladakh Autonomous Hill Development Councils of Leh and Kargil, Compensatory Afforestation Management and Planning Authority (CAMPA), Agriculture Universities, Employees Provident Fund Board, J&K Housing Board, Khadi and Village Industries Board and Building and Other Construction Workers Welfare Board are among the bodies which are not timely submitting accounts for audit.
“Non-submission or delay in submission of accounts by these bodies despite receiving substantial funding from the State Budget is a serious financial irregularity persisting for years”, the Comptroller and Auditor General of India has said while recommending that State Government should take necessary steps without further delay so as to ensure strict compliance to the rules.
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