Noting that Jammu and Kashmir government has failed to submit 1,377 Utilisation Certificates (UCs) for an amount of over Rs 1,919 crore as on March 31, 2015, the CAG has said it was a "serious financial irregularity".
According to the CAG's latest report on state finances for the year ended March 31, 2015, tabled in the Assembly recently, a total number of 1,377 UCs involving Rs 1919.98 crore was outstanding, of which 710 UCs amounting to Rs 949.93 crore was outstanding for more than one year. The audit body observed that such delay was "fraught with the risk of misappropriation".
Financial rules state that for the grants provided for specific purposes, UCs should be obtained by the department officers from grantees and after verification these should be forwarded to the Accountant General, J&K within 18 months from the date of sanction unless specified, the report said.
An amount of Rs 810.77 crore was granted as grant-in-aid to 13 autonomous bodies in 2013-14, it said.
The amount of UCs have increased by over Rs 600 crore as compared to financial year which ended on March 31, 2014.
According to the last CAG report on state finances for the year ended March 31, 2014, a total number of 1,769 UCs involving Rs 1,315.72 crore was outstanding.
On the submission of accounts, CAG said 384 annual accounts of 31 bodies/authorities were awaited in Accountant General (Audit), Jammu and Kashmir as on 31 March 2015.
Seven autonomous bodies required to be audited by the Comptroller and Auditor General of India under Sections 19(3) and 20(1) had also not furnished the annual accounts, it said.
"Non-submission/delay in submission of accounts by these bodies receiving substantial funding from the state budget is a serious financial irregularity persisting for years," CAG said.
Against the total amount of Rs 3,320.64 crore drawn on AC bills by various Drawing and Disbursing officers during 1995-2015, corresponding DC bills were not submitted to the Accountant General (A&E), Jammu and Kashmir, it said.
"Non-rendition of DC bills for such a huge amount over a long period is fraught with the risk of misappropriation," the audit body added.
