‘Serious financial irregularities’ in LAHDC Leh, Kargil’

Srinagar: The Comptroller and Auditor General (CAG) has pointed out serious financial irregularities in Ladakh Autonomous Hill District Council (LAHDC) Leh as well as Kargil.
“LAHDC Leh has failed to submit accounts for audit since its inception (1995-96) though substantial sums are released to the Council and unspent balance at the end of the year remain credited in a non-lapsed fund in the public account of the state,” said CAG’s latest report on the Financial Reporting for 2012-13.
Same is the position in respect of the LAHDC, Kargil which came into existence in 2004-05 and the accounts are in arrears since inception, the report says.
The non-submission of accounts by these bodies, receiving ‘substantial’ funding from the state budget, CAG pointed out, is a “serious financial irregularity persisting for years.”
“In view of the non-compliance, the audited accounts of these statutory bodies have not so far been presented to the state legislature as required under the statutes under which these bodies were created,” the CAG said. “This has deprived the state legislature to get a feedback on their activities and financial performance.”
The report has revealed that LAHDC Leh has been provided Rs 353.45 crores grants while LAHDC Kargil received Rs 354.61 crores during 2012-13.
Apart from the LAHDC Leh and Kargil, there are for four more autonomous  bodies which have also not furnished accounts to the CAG, the report said.
They include SK University of Agriculture Science and Technology in Srinagar and Jammu, Jammu and Kashmir Legal Services Authority Srinagar and Provident Fund Organization (PFO) Srinagar.
As per the report, there is a delay by 1-3 years on non-submission of accounts on part of SKUAST-K which was provided grants of Rs 114.36 crores during 2012-13. The delay in the number of years for SKUAST-J, which had grants to the tune of Rs 45.55 crores during 2012-13, has been 1-2 years, the report said.
Similarly, J&K Legal Services Authority, having Rs 9.67 crores grants has delayed the submission of required accounts for 1-16 years while PFO Srinagar has not submitted accounts for 1-12 years, according to the report.
The CAG has recommended timely preparation of annual accounts by the autonomous bodies to facilitate auditing.