Nagpur: A Comptroller and Auditor General (CAG) inspection audit of Nagpur Municipal Corporation (NMC) has flagged several financial and accounting lapses, including pending utilisation certificates (UCs) worth Rs1,646 crore, unadjusted advances of Rs4.2 crore and a negative balance of Rs52.44 crore in the Nagpur Smart and Sustainable City Development Corporation Ltd account (NSSCDCL).The audit observations raise questions about the civic body’s financial management, monitoring of govt grants and internal accounting controls. The findings are part of the inspection report on the accounts of NMC’s chief accounts and finance officer for the period covered by the audit.One of the major concerns is the non-submission of utilisation certificates worth Rs1,646 crore. The pending certificates relate to grants received from govt agencies and are required to establish that funds were spent for their sanctioned purposes. The delay could complicate financial accountability and affect the processing of future grants.The audit also highlights a negative balance of Rs52.44 crore in the account of NSSCDCL. The provisional balance sheet for 2024-25 showed the deficit under grants and contributions for specific purposes. The report also recorded a reduction in the grant balance for special city development projects.Another observation concerns advances of Rs4.20 crore paid to various officials and department heads that remain unadjusted. The audit sought details of pending advances, indicating shortcomings in monitoring and reconciliation of expenditure.The report also raised concerns over statutory accounting procedures. While NMC’s annual accounts for 2023-24 were examined and approved by the chief auditor, the accounts for 2024-25 had been prepared but further action was still underway. The audit sought an update on compliance with statutory requirements.Among other outstanding observations are a loan liability of Rs94.41 crore pending for over 16 years and avoidable interest payments linked to delays in loan-related procedures.Former NCP corporator Vedprakash Arya submitted a memorandum to municipal commissioner Vipin Itankar, demanding a high-level inquiry into the financial irregularities and accountability of officials concerned.
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