In this context, the CAG report has also cited some case studies on incorrect submission of UC, non-submission of UC, and incorrect representation of fund utilisation.In its report for the state finances for the year 2024-25, the Comptroller and Auditor General of India has raised the issue related to delay in submission of utilisation certificates (UCs) of the purposes for which grants-in-aid (GIA) have been issued and which are essential to be obtained and sent to the Principal Accountant General (A&E) within stipulated time.The CAG has noted that as many as 4,258 UCs in connection with GIA worth Rs 7,431 crore given to 18 departments of the state government between 2001-02 to 2023-24 were not submitted till March 31, 2025. With that, the CAG has recommended instituting a rigorous monitoring mechanism for the compliance of the legal provision in this regard.The CAG pointed out the issue in its report while discussing the chapter on financial reporting practices of the state government.The report says that Gujarat Financial Rules, 1971 read with General Financial Rules, 2017 provide that every GIA made for a specified object is subject to two conditions: 1) The GIA shall be spent for the intended purpose, and within a reasonable time if no time-limit has been fixed by the sanctioning authority, and 2) Any portion of the GIA which is ultimately not required for expenditure for the purpose, shall be duly surrendered to the government.It further says, “Further, Rules 154 and 155 of Gujarat Financial Rules, 1971 prescribe that Utilisation Certificate (UCs) of grants provided for a specific purpose should be obtained by the Departmental officers from the grantee and after verification should be forwarded to the Principal Accountant General (A&E) within one year from the date of their sanction, unless specified otherwise.”Highlighting the importance of UCs for transparency of accounts, the report noted, “UCs are essential in obtaining assurance that the grants have been utilised for the prescribed purposes. The delay in submission and incorrect information in UCs give rise to risks of misappropriation, fund diversion, non fulfilment of purpose of GIA, and blocking of funds due to lack of information on savings and balance funds.”Pointing out the delay in submission of UCs for multi-crore GIA, the report stated, “Audit scrutiny revealed that 4,258 UCs in respect of GIA aggregating Rs 7,431.84 crore, given to 18 Departments of the State Government from 2001-02 to 2023-24, had not been submitted as of 31 March 2025.”Story continues below this adThe report provided a year-wise breakdown of the pending number of UCs and stated that, up to 2023-24, 2,884 UCs amounting to GIA worth Rs 3,147 crore were outstanding, whereas the figure for 2024-25 was 1,374 UCs for GIA worth Rs 4,284 crore.In this context, the CAG report has also cited some case studies on incorrect submission of UC, non-submission of UC, and incorrect representation of fund utilisation.Before recommending the state government institute a rigorous monitoring mechanism for the compliance of the timely submission of UCs, the report noted, “Since non-submission of UCs is fraught with the risk of misutilisation, it is imperative that the State Government should monitor this aspect closely and hold the persons concerned accountable for submission of UCs in a timely manner.”