Mahibadhoo Council fails to maintain registry of leased properties in accordance with regulations: Audit Office
An audit report has revealed that the ADh. Mahibadhoo Island Council failed to maintain its registry of leased properties in accordance with financial regulations, making it impossible to verify the total outstanding revenue owed to the council. Consequently, the Auditor General’s Office has instructed the council to update its lease records and take necessary action against parties with overdue payments.
ADH. Mahibadhoo: The Audit Office has instructed authorities to ensure all outstanding lease payments are collected regularly and to take necessary action against defaulters in accordance with Article 5.16 of the Public Finance Regulations. | Social Media
The Auditor General’s Office has stated that the ADh. Mahibadhoo Island Council has failed to maintain its registry of leased properties in accordance with financial regulations.
The 2022 compliance audit report of the Mahibadhoo Island Council, released by the Auditor General’s Office, noted that Clause 11.31 (b) of the State Finance Regulations mandates the maintenance of two separate registries for leased and rented properties, in accordance with the prescribed templates.
The article specifies that the registry must include the name and address of the property, details of the lessor or lessee, the monthly rent, and the commencement or acquisition date of the lease. Furthermore, it must record the date rent was received, the receipt or bill number, the amount received, the payment date, and the voucher number.
The registry is also required to document the bank account number where rent is deposited, the date of vacation or termination of the lease, additional remarks—including the duration of the agreement and any subsequent amendments to its terms—and a comprehensive inventory of the leased premises.
However, the report noted that while the South Ari Atoll Mahibadhoo Council Secretariat maintains a registry of leased properties, they have failed to complete the required property details or maintain up-to-date rent payment schedules as stipulated in the regulations.
The Audit Office stated that it could not verify whether all lease payments due by the end of 2022 had been collected, nor could it confirm the exact amount of outstanding arrears. Furthermore, the office noted there was no evidence that action had been taken against those who failed to pay rent regularly, as stipulated in their respective agreements.
The Audit Office stated that the council has been instructed to maintain records of leased properties in accordance with the prescribed templates, as stipulated in Section 12.13 (b) of the State Finance Regulations. Furthermore, the office directed the council to ensure that all lease payments are collected regularly and to take necessary actions against defaulting parties as outlined in Section 5.16 of the State Finance Regulations.
