MVR 1.7 million of F. Nilandhoo Council's revenue remains unrecorded
The 2023 audit report for F. Nilandhoo Council has revealed that MVR 1.7 million in revenue was not recorded in the state’s central financial management system, "Viya Module." The audit highlighted that funds collected from land rent and various business activities were processed only through the "QuickBooks" system, in violation of state financial regulations. Consequently, the Auditor General noted that the council’s financial reports are incomplete due to the failure to document these transactions through the official state system.
Members of the F. Nilandhoo Island Council. | Nilandhoo Council. | F. Nilandhoo council
The 2023 compliance audit report for the F. Nilandhoo Council has revealed that MVR 1.7 million of the council's revenue was not officially recorded.
The 2023 Compliance Audit Report states that pursuant to Article 5.06 (a) of the State Finance Regulations, any payments received via check, account credit or debit, or credit card must be formally acknowledged with a receipt. Furthermore, all such transactions must be systematically recorded and maintained in the official accounting ledgers.
Furthermore, Article 5(b) of the "Regulation on the Use of Online Banking Services by Councils" issued by the Ministry of Finance mandates that all transactions conducted via online banking must be recorded in the "Viya Module," the network used for council accounting. The regulation explicitly prohibits any online banking transactions from being carried out without being recorded in the Viya Module and requires that details of any funds received as revenue must also be documented within the system.
However, the audit report revealed that the F. Nilandhoo Council failed to generate receipts through the "Viya" module for all funds collected during 2023. The report noted that while receipts were issued via the "QuickBooks" system for certain council revenues and income from commercial activities (Addana Shop), these transactions were not recorded in the mandatory "Viya" module.
The audit report highlighted that several revenue streams of the council were not officially receipted through the Viya module. These include funds generated from waste management services, land and building leases, palm grove rentals, equipment hire, the sale of coconuts, and various other miscellaneous income sources.
Furthermore, it was noted that while a total of MVR 2,273,289 (two million two hundred seventy-three thousand two hundred eighty-nine) was recorded as council revenue in "QuickBooks," MVR 1,724,816 (one million seven hundred twenty-four thousand eight hundred sixteen) had not been entered into the Viya module.
The audit report stated that the revenue reports generated through the "Viya" module were incomplete, as a significant portion of the council's income had not been officially receipted or recorded within the system.
