Audit exposes poor financial oversight in sports associations

The audit report by the Auditor General's Office has shown that several sports associations in the Maldives do not properly maintain records of their financial transactions and do not properly monitor their expenses.

On Tuesday, the Auditor General's Office released the audit report of the Ministry of Sports, Fitness and Recreation, covering the period between 2018 to 2023.

The audit report notes that during this period, the Ministry of Sports, Fitness and Recreation provided financial assistance to several associations.

In 2018 alone, the Ministry of Sports, Fitness and Recreation spent more than MVR 36 million on 16 sports associations in the Maldives.

However, the audit report highlighted that the associations have not maintained records of how they spent the funds allocated to them and related documentation. In addition to this, it was noted that there was no documentation available on how the Ministry of Sports, Fitness and Recreation instructed the associations to spend the money.

Further, the report states that some associations have not maintained detailed records of how they spent the state funds provided by the sports ministry. It was noted that this was due to the ministry failing to monitor this aspect.

Similarly, the office had requested documentation on how some associations spent the funds multiple times. According to the Auditor General's Office report, despite repeated requests, some associations did not share these documents.

The report sheds light on details of 12 associations that received funding from the sports ministry as well as the details of the funds disbursed.

In the report, the Auditor General's Office stated that they recommend instructing associations to prepare expense reports related to program budgets in a way that shows details of individual expenses. They also requested the ministry to identify associations that do not prepare and submit expense reports and develop measures to be taken against such associations.

Further, they requested that the accounts of funds released by the state to associations be kept securely in an easily accessible manner, and that the accounts be maintained in a way that information can be easily provided if a relevant state authority requests such information.

In addition to this, they have requested that the sports ministry instruct associations to follow the State Finance Regulations when spending funds allocated by the state to associations, and that the ministry ensures that associations are following this practice.