Our Correspondent
KOHIMA, MARCH 19
The report of the Comptroller and Auditor General of India (CAG) on State Finances for the year ending 31 March 2015, which was presented in the State Assembly today by the Chief Minister TR Zeliang, has highlighted that timely submission of Utilisation Certificates (UCs) is a major area of concern for Nagaland.
According to the CAG report, at the end of March 2015, 104 UCs involving an aggregate amount of Rs.217.65 crore were pending for submission even after a lapse of 1-5 years from various departments. The report stated that as per Financial Rules, for the grants provided for specific purposes, UCs should be obtained by the departmental officers from the grantees and after verification they should be forwarded to the Accountant General (Accounts & Entitlement) within 12 months from the date of their sanction unless specified otherwise.
However, of the 629 grants in respect of 11 departments amounting to Rs.830.33 crore paid up to 2014-15, 104 UCs for an aggregate amount of Rs.217.65 crore were in arrears, the report said. These departments include Urban Development (23 UCs pending), Agriculture (2 UCs), PHED (2 UCs), Plannong & Coordination (54 UCs), Registrar of Cooperative Societies (3 UCs), IPR (2 UCs), Technical Education (1 UC), Youth Resources & Sports (1 UC), Art & Culture (12 UCs), DUDA (3 UCs), DGP (1 UC). The report has pointed out that in the absence of UCs, it could not be ascertained whether the recipients had utilised the grant for the purpose for which they were given.
The CAG report also revealed that 22 autonomous bodies/authorities have failed to submit 55 Annual Accounts due up to 2014-15 ranging between 1-5 years as of August 2015 to the Accountant General (Audit). They are the DRDAs of all the 11 districts, NSLS Authority Kohima, NBSE, SIRD, DAN, KVIC, NPCB, NB&OCWWB, NSAMB, NHK Kohima, KMC and MMC.
Due to the absence of Annual Accounts and subsequent audit of those 22 bodies and authorities, the CAG stated that proper accounting/utilisation of the grants and loans disbursed to them remained unverified. It also mentioned that the reasons for non-preparation of the accounts were not intimated.
On the delay in submission of Accounts/Audit Reports of autonomous bodies, the report said the annual account of the NKVIB for the period 2014-15 had not been furnished as of August 2015 while the NERC and Nagaland Hospital Authority were yet to furnish accounts since their inception.
Meanwhile, 8 departmentally managed government commercial undertakings were yet to finalize their proforma accounts ranging from 1-35 years as on March 2015 even after a mention was made on the same in the CAG report of 2012-13. These undertakings are NST, Nagaland Power Department, 3 farms under Agriculture, Changki Valley Fruit Preservation Factory, Timbre Treatment & Seasoning Plant Dimapur, Government Cottage Industries Emporia Kohima, 18 farms under Veterinary & Animal Husbandry, and Regional Progeny Orchard Lognak under Horticulture department.
The report stated that absence of timely finalisation of accounts had made the government’s investment remain outside the scrutiny of the Audit/State Legislature, and corrective measures could not be taken in time. Such delay also opens the system to risk of fraud and leakage of public money, it added.
The CAG report also stated that there were 34 cases of misappropriation, loss, defalcation etc involving government money to a tune of Rs.616.13 crore up to the period 31 March 2015, on which final action was pending. The report noted that the highest amount of misappropriation and loss amounting to Rs.402.66 crore involving two cases occurred in Food & Civil Supply, where action had not been taken by the state government.
The CAG has also revealed that an amount of Rs.80.46 crore was drawn by 16 departments during the year 2014-15 for implementation of different schemes, out of which, the departments have utilised only Rs.20.41 crore during the financial year and the remaining amount was kept in civil deposit (Rs.55.02 crore) and current bank account (Rs.5.03 crore). The departments are Controller of LM&CP, department of Justice and Law, SIRD, Election, Transport Commissioner, and the Directorates of Science and Technology, IT &C, Evaluation, Horticulture, Economics & Statistics, V&AH, Women Resource Development, Land Records & Survey, YRS, Printing & Stationery and RD.
In addition to this, the report stated that information furnished by two banks revealed that an aggregate amount of Rs.467.76 crore was lying in the respective bank accounts of 93 DDOs as on March 31, 2015.
In the conclusion remarks, the CAG has stated that non-submission of accounts in time indicates non-compliance with the financial rules. It recommended that the accounts of Autonomous Bodies/Authorities and Departmental Undertakings need to be finalized at the earliest.
