Kunburudhoo Council failed to maintain bank account balances in 2022: Audit Report
24 ޖުލައި 2026 | ހުކުރު 17:39The Auditor General’s report has highlighted that the Kumburudhoo Council failed to maintain its bank accounts in accordance with state financial regulations, making it impossible to verify the accuracy of the funds held by the authority. Consequently, the Auditor General has instructed the council to perform monthly bank reconciliations and utilize the 'Viya' accounting module to ensure the integrity and completeness of its financial records.
ADh. Kunburudhoo: The Auditor General’s Office has reported that the Kunburudhoo Island Council failed to maintain accurate records of its bank account balances throughout 2022. | MTCC
The Auditor General’s Office has revealed in its 2022 financial audit report that the Kunburudhoo Island Council failed to maintain accurate bank account balances or prepare bank reconciliation statements throughout the year.
The audit report highlights that, pursuant to Article 5.16 (a) of the State Finance Regulations, any government office depositing funds into a bank must maintain accurate financial records. These records must be updated regularly, either in an account balance ledger or via computerized sheets, to track all transactions. Furthermore, the report stipulates that in accordance with Articles 5.16 (b) and 4.07 (b) of the same regulations, offices are required to prepare monthly bank reconciliation statements. This process is mandatory to ensure that the balances reflected in the office's internal financial records align accurately with the official bank account statements at the end of each month.
According to the audit report, Article 13.09 (a) of the State Finance Regulations mandates that the Financial Responsible Officer must maintain separate accounts and documentation for every bank account. Furthermore, Article 13.09 (c) stipulates that if any bank account is operated in addition to the Public Bank Account, the Financial Responsible Officer must perform a bank reconciliation at least once a month.
However, the audit report revealed that although the council's bank accounts held a total of MVR 4,242,000 (four million two hundred and forty-two thousand) at the end of 2022, account balances were not maintained in accordance with regulations. The report further highlighted that bank reconciliation statements, which are essential to verify the accuracy of the council's financial records against actual bank balances, had not been prepared.
The audit report further highlighted that failure to reconcile the funds held in the institution's bank accounts with the figures recorded in the council's financial statements would make it difficult to ensure the integrity and accuracy of the financial records.
The audit report also stated that the exact balances remaining in the council's various funds at the end of those years could not be verified, as the Kunburudhoo Council office had failed to maintain proper inventory and item records.
Recommending corrective measures, the office instructed the council to maintain bank account balances and prepare financial reconciliations in accordance with Sections 5.20 (a) and 13.09 (f) of the State Finance Regulations. Furthermore, the office directed the council to utilize the "Viya" module records of the council's administration when performing these reconciliations.
