Baarah Council failed to maintain records of receivables and lease registries for 2022: Audit Report

The Auditor General’s Office has revealed that the HA. Baarah Island Council failed to maintain proper financial records of its receivables for the year 2022, and neglected to keep a registry of properties leased by the council.

The Auditor General’s report on the 2022 financial statements of the HA. Baarah Council Secretariat noted that, pursuant to Section 11.31 (b) of the State Finance Regulations, the council is required to maintain two separate registries for leased and rented properties, containing the specific information mandated by the regulation.

Furthermore, the report noted that Article 15.02 (a)(9) of these regulations mandates state offices to include comprehensive details of all outstanding revenue and other receivables in their annual financial statements prepared at the end of each year.

However, the Audit Office noted that the Baarah Council had failed to prepare detailed financial records of outstanding payments. Furthermore, the office stated that a proper registry of leased properties had not been maintained in accordance with established regulations.

Consequently, the Auditor General’s Office stated that it was impossible to verify the total revenue due to the council or determine the exact amount of outstanding payments.

To rectify these issues, the Auditor General’s Office has instructed the island council to maintain a complete registry of properties leased by the council, ensuring all information required under Section 12.13 (b) of the State Finance Regulations is included. Furthermore, the office directed the council to regularly prepare and maintain detailed records of outstanding revenue and other receivables, as mandated by Section 15.02 (a)(9) of the same regulations, and to ensure this information is accurately reflected in their financial statements.