Audit: Origin of MVR 16.7 million held in Kaafu Atoll Council’s account at the end of 2024 remains unidentified
An audit report has revealed that the Male' Atoll Council failed to maintain accurate fund balances, leaving the specific allocation of 16.7 million Rufiyaa in its account unaccounted for. The Auditor General’s Office noted that because financial statements were not prepared in accordance with Local Government Authority (LGA) guidelines, the exact breakdown of these funds could not be determined. Consequently, the audit report recommended that the council strictly utilize designated funds for receipts and expenditures and ensure proper maintenance of financial records.
The Auditor General's report has highlighted that the Kaafu Atoll Council is unable to identify the specific funds to which 16.7 million Rufiyaa, held in its account as of the end of 2024, belongs. | Avas
The Auditor General’s Office has stated that the source of 16.7 million Rufiyaa held in the Kaafu Atoll Council’s account at the end of 2024 remains unidentified.
The Auditor General’s Office, in its 2024 compliance audit report for the Kaafu Atoll Council, stated that the Local Government Authority (LGA) has established specific guidelines for recording financial transactions in the appropriate funds, as well as for the receipt and expenditure of monies. The report further noted that councils are required to prepare their budgets and financial statements in accordance with these established principles.
The audit report stated that the institution failed to maintain records of fund balances. Consequently, the report noted that there is no way to determine the ownership or the specific amounts of the funds currently held by the council office.
The report highlighted that it was impossible to determine the specific fund allocations for the 16,722,955 MVR (sixteen million, seven hundred and twenty-two thousand, nine hundred and fifty-five Rufiyaa) remaining at the end of 2024 in the council’s primary account, which is used for all revenue and expenditures.
To rectify these issues, the office has advised the council administration to ensure that funds are managed within the most appropriate accounts. This includes utilizing the correct designated funds for all receipts and expenditures, as well as maintaining precise financial records that clearly reflect the current balances of each individual fund.
The 2022 financial statement of the Kaafu Atoll Council failed to include financial data from 2021. Furthermore, the audit highlighted that the council office had neglected to maintain proper records of outstanding receivables, specifically regarding land rent fines and the repayment of disbursed loans.
