Nagaland: Utilisation certificates worth over Rs 316 crore pending

March 30, 2023 14 Views No Comment

• CAG tells State Govt to ensure timely submission of all utilisation certificates
• Planning Department leads in delay in submission

Morung Express News
Dimapur | March 30

As on March 2022, there are 149 Utilisation Certificates (UCs) worth Rs 316.34 crore, due for submission for periods pertaining up to 2020-21, highlighted the latest Comptroller and Auditor General (CAG) of India’s audit report on Nagaland government.

In addition, UCs of 61 grants involving Rs 81.80 crore provided to 16 Departments are due for submission during the year 2022-23, informed that CAG’s State Finances Audit Report, Government of Nagaland (Report No. 1 of the year 2023) for the year ended March 31, 2022.

Pending UCs violate prescribed financial rules and directives, and reflects poor monitoring mechanism of the State Government, the CAG noted in the report tabled in the 1st Session of the 14th Nagaland Legislative Assembly on March 28.

Moreover, high pendency of UCs is fraught with risk of misappropriation of funds, it added.

The statutory auditor of the Government further observed that the State would also lose out on central funds for want of UCs not submitted.

As per the year-wise break up data provided by the CAG in its report, some outstanding UCs were over a decade old and delay in submission seems to be routine affairs.

For instance, there were three outstanding UCs worth Rs 5.15 crore pertaining to 2011-12 financial years, while 5 from next year worth Rs 9.75 crore.

The highest was in 2013-1 with 7 UCs pending for submission with grant worth Rs 99.16 crore. It was followed by Rs 75.23 crore in 2014-15.

At 40 each, the year 2019-20 and 2020-21 had the highest outstanding UCs in terms of numbers amounting to Rs 28.99 crore and Rs 44.31 crore respectively.

Department-wise Outstanding UCs
Incidentally, the Department of Planning & Co-Ordination, responsible for coordinating and monitoring implementation of various plans of the State Government, among others, was the biggest defaulters in submitting UCs in terms of amount involved.

According to the department-wise outstanding UCs for grants paid up to 2021-22, there were 19 UCs pending for submission by the department involving an amount of Rs 118.39 crore.

Second was the Rural Department for 6 outstanding UCs involving Rs 78.54 crore, followed by Education Department, which had 17 pending UCs involving Rs 45.33 crore.

In terms of numbers of pending UCs, the Social Security and Welfare Department had the highest at 29, though the sum involved was Rs 18.57 crore. (See Chart)

Meanwhile, there were 335 Abstract Contingent (AC) Bills involving Rs 532.83 crore pending for adjustment by submission of Detailed Countersigned Contingent (DCC) Bills, as of March 2022, the report informed.

Out of these, 28 AC bills amounting to Rs 22.83 crore pertained to the year 2021-22.

The non-adjustment of AC Bills is fraught with the risk of misappropriation and therefore, requires close monitoring by the respective DDOs for ensuring submission of (DCC) bills, the CAG noted, adding that 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 to that extent.

There were huge pendencies in submission of accounts in respect of Autonomous Bodies/other Authorities as well as State Public Sector Enterprises, it added.

During the year 2021-22, Public Works and Forests Divisions were the major units that delayed the rendition of monthly accounts, the CAG said.

“Delayed rendering of accounts by the account rendering units/ authorities distorted the accurate depiction of monthly transactions of the State and impacted effective budgetary management,” it added.

Recommendations
Among others, the CAG called on the State Government to ensure timely submission of all UCs due by the recipients of grants and of DCC Bills within the prescribed timeline as required under the Rules.

The Finance Department should consider evolving a system to expedite the process of compilation and submission of annual accounts by Autonomous Bodies and departmentally run undertakings in order to assess their financial position, it said.

Persistently defaulting bodies may be given further financial assistance by the State Government only on submission of final accounts, it added.

The CAG also called upon the State Government to take appropriate steps either to revive the two non functional State Public Sector Enterprises or to wind up these SPSEs.