The Jammu and Kashmir government failed to submit utilisation certificates for grants exceeding Rs 12,000 crore received from the Centre until March 2024, the Comptroller and Auditor General of India has said.
The apex auditing body said non-submission of utilisation certificates (UCs) implies that authorities have not accounted for how the funds were utilised over the years.
“Utilisation certificates amounting to Rs 12,074.25 crore (3,663 UCs) were outstanding indicating lack of internal control of administrative departments,” the Comptroller and Auditor General (CAG) report on finances for the financial year ended 2023-24 said.
The report indicated weak internal controls within administrative departments. It added that in the absence of these certificates, there is no assurance that the funds were used for their intended purposes.
“There is also no assurance that the intended objectives of providing these funds, advances drawn through abstract contingent bills and their detailed countersigned bills were not submitted which increased the possibility of wastage and misappropriation,” it said.
Further, instances of non-submission or delays in submission of accounts by government-funded bodies were observed, which deprived the legislature of the opportunity to assess their financial performance and activities.
The report also highlighted that substantial expenditure and receipts were booked under minor head “800 – other expenditure” and “800 – other receipts” across various major heads, adversely affecting transparency in government accounts.
Recommending corrective measures, the CAG said the government should ensure timely submission of utilisation certificates and detailed countersigned contingent (DCC) bills by departments and grantees.
It also stressed the need to strengthen internal control mechanisms and ensure regular reconciliation of expenditure figures with those of the accountant general.
The audit body further advised the Union territory government to fully implement Indian Government Accounting Standards to improve financial reporting and ensure that companies, corporations and autonomous bodies submit their annual accounts within prescribed timelines.