CA Sansaar
CAG Raises Concern Over Pending Accounts of PSUs and Autonomous Bodies in J&K
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The Comptroller and Auditor General (CAG) has expressed serious concern over the substantial delay in the finalisation of accounts of Public Sector Undertakings (PSUs) and autonomous bodies in Jammu and Kashmir.
As per the latest observations up to March 31, 2024, a large number of entities have not completed their financial statements, with some accounts pending for as long as 14 years. This indicates a persistent and systemic backlog in financial reporting across various government-linked organizations.
The CAG has highlighted that such prolonged delays adversely affect transparency and weaken accountability mechanisms. In the absence of timely finalisation of accounts, it becomes difficult for stakeholders, including the legislature, to effectively review financial performance, assess the utilization of public funds, and ensure proper governance. This lack of up-to-date financial information also hampers informed decision-making and policy planning.
Further, the audit authority has stressed that delays in submission of accounts undermine legislative oversight, as audited financial statements are a critical tool for scrutiny by oversight bodies. Without current and accurate financial data, the effectiveness of audits and subsequent corrective actions is significantly reduced.
In light of these concerns, the CAG has urged the Union Territory administration to take immediate and concrete steps to address the backlog. It has recommended the implementation of strict timelines and accountability measures for the preparation and submission of annual accounts. Strengthening internal monitoring systems, fixing responsibility for delays, and ensuring regular compliance with statutory requirements have also been emphasized.
The CAG further advised that all PSUs, corporations, and autonomous bodies must prioritize the timely completion and submission of their financial statements within the prescribed period. Adherence to these timelines is essential to enhance financial discipline, improve transparency, and reinforce good governance practices across the public sector.
As per the latest observations up to March 31, 2024, a large number of entities have not completed their financial statements, with some accounts pending for as long as 14 years. This indicates a persistent and systemic backlog in financial reporting across various government-linked organizations.
The CAG has highlighted that such prolonged delays adversely affect transparency and weaken accountability mechanisms. In the absence of timely finalisation of accounts, it becomes difficult for stakeholders, including the legislature, to effectively review financial performance, assess the utilization of public funds, and ensure proper governance. This lack of up-to-date financial information also hampers informed decision-making and policy planning.
Further, the audit authority has stressed that delays in submission of accounts undermine legislative oversight, as audited financial statements are a critical tool for scrutiny by oversight bodies. Without current and accurate financial data, the effectiveness of audits and subsequent corrective actions is significantly reduced.
In light of these concerns, the CAG has urged the Union Territory administration to take immediate and concrete steps to address the backlog. It has recommended the implementation of strict timelines and accountability measures for the preparation and submission of annual accounts. Strengthening internal monitoring systems, fixing responsibility for delays, and ensuring regular compliance with statutory requirements have also been emphasized.
The CAG further advised that all PSUs, corporations, and autonomous bodies must prioritize the timely completion and submission of their financial statements within the prescribed period. Adherence to these timelines is essential to enhance financial discipline, improve transparency, and reinforce good governance practices across the public sector.
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