Delay in UCs submission, incomplete projects ‘fashionable’ in Nagaland

• As on March 2020, 104 UCs worth Rs 378.59 crore due for submission
• 399 projects lying incomplete as on March 2020, finds CAG

Morung Express News
Kohima | March 24

Delay in submission of Utilisation Certificates (UCs) and non-completions of projects seem to be a permanent ‘fashionable’ trend in Nagaland.

The latest “State Finances Audit Report” of the Comptroller and Auditor General (CAG) of India relating to the Government of Nagaland for the year ended March 31, 2020 affirmed the same.

The report, laid before the members of Nagaland Legislative Assembly on March 22, noted that during 2019-20, 91 grants involving Rs 77.61 crore were provided to 20 departments.

The UCs for those grants were outstanding during the year 2020-21, the CAG observed.

Outstanding UCs
In addition, the CAG observed that as on March 2020, there were 104 UCs worth Rs 378.59 crore due for submission for periods pertaining up to 2018-19.

As per the details provided by the CAG, major defaulting departments in terms of amount involved were Rural Development department (7 UCs), leading the tally with Rs 159.44 crore, followed by Planning and Co-ordination (15 UCs) Rs 116.39 crore, Industries and Commerce (36 UCs) Rs 34.79 crore, Higher Education (10 UCs) Rs 32.48 crore, and School Education (19 UCs) Rs 30.73 crore. (See table)

The CAG noted that pending UCs violate prescribed financial rules and directives, and reflects poor monitoring mechanism of the State Government and raises the issue of transparency.

Moreover, high pendency of UCs is fraught with risk of misappropriation of funds and the State would also lose out on central funds for want of UCs not submitted, it added.

According to the CAG, the General Financial Rules provide that every order sanctioning a grant would specify its objective clearly and time limit within which the grant is to be spent.

Rule 238 (1) of General Financial Rules, 2017 stipulates that a grantee Organisation or Institution getting non-recurring grants is required to submit a certificate of actual utilisation of the grants received for the purpose for which it was sanctioned in within twelve months, it noted.

Non-submission of the UCs means that the authorities have not explained as to how funds were spent over the years and there is also no assurance that the intended objectives of providing these funds have been achieved.

High pendency of UCs is fraught with risk of misappropriation of funds and it is imperative that the State Government should monitor this aspect closely and hold the concerned persons accountable for submission of UCs in a timely manner, it added.
The State would also lose out on central funds for want of UCs not submitted, the CAG pointed out.

In addition, the CAG noted that were 379 Abstract Contingent (AC) Bills involving Rs 548.69 crore pending for adjustment by submission of Detailed Countersigned Contingent (DCC) Bills, as of March 2020.

Out of these, 125 AC bills amounting to Rs 96.22 crore pertained to the year 2019-20.

The non-adjustment of AC Bills is fraught with the risk of misappropriation and therefore, requires close monitoring by the respective DDOs and there is no assurance that the expenditure of the State Government reflected in the Finance Accounts is correct or final due to non-receipt of DCC bills, it added.

Incomplete projects
Meanwhile, the CAG report also highlighted that there were 399 projects were lying incomplete as on 31 March 2020, for which Rs 1,309.30 crore had been expended.

There was cost overrun of Rs 153.68 crore on these incomplete projects as on March 31, 2020, it added.

These projects were being executed by 36 Departments.

Giving an age profile of the projects, the CAG pointed out that for 62 out of 399 projects, target year of completions were not furnished by the Departments as of March 2021.

Works for two projects (estimated cost Rs 10.93 crore) had been suspended after incurring an expenditure of Rs 10.46 crore while there was no financial progress during 2019-20 for in 168 projects.

There was 100 per cent financial achievement in four projects but not 100 per cent physical progress and in one project, the physical progress was nil.

No expenditure was incurred in 63 projects which had an estimated cost of Rs 33.46 crore while in 35 projects up to March 2020, Rs 1.85 crore was incurred without any physical progress.

Project cost in respect of 18 incomplete projects was revised from Rs 237.38 crore to Rs 391.06 crore.

Increase of Rs 153.68 crore in cost was related to projects under PWD (Roads and Bridges) – (Rs 60.50 crore), PWD (Housing) – (Rs 13.37 crore), Public Health Engineering Department (Rs 0.49 crore), Geology and Mining (Rs 27.41 crore), State Council of Educational Research and Training (Rs 0.69 crore), Transport (Rs 5.09 crore), Veterinary and Animal Husbandry (Rs 0.14 crore), Youth Resources and Sports (Rs 12.02 crore), Agriculture (Rs 0.01 crore), Social Welfare (Rs 9.25 crore) and Forest (Rs 24.71 crore).

Out of 375 projects, sanctioned prior to 2013-14, 119 projects remained incomplete and reason for non-completion though called, had not been received till March 2021, the CAG added.

Accordingly, due to non completion, the Capital Expenditure of Rs 1,309.20 crore incurred on these 399 incomplete projects remained blocked, it said.

Blocking of funds on incomplete projects/ works impinges negatively on the quality of expenditure and deprives the State of the intended benefits for prolonged periods.

Further, delay in completion of the projects was fraught with the risk of cost overrun, which was evident in 60 projects which were pending since 2003.

Therefore, effective steps need to be taken to complete all these projects without further delay to avoid time and cost inefficiencies.

Source: https://morungexpress.com/delay-in-ucs-submission-incomplete-projects-fashionable-in-nagaland