Audit Finds MVR 811,302 Discrepancy in Th. Vilufushi Council Revenue Records

The Auditor General’s Office has identified discrepancies between the financial statements submitted by the Th. Vilufushi Council and records maintained in the council secretariat’s financial system.

Viya Module is a digital financial and procurement portal developed for local councils in the Maldives to streamline public finance record-keeping, budgeting, and reporting.

According to the audit report, the council reported total revenue of MVR 12.99 million in its financial statements, while its Viya module recorded MVR 13.80 million, resulting in a variance of MVR 811,302.

A smaller discrepancy was also identified in expenditure. The financial statements recorded total spending of MVR 10.19 million, compared with MVR 10.20 million recorded in the Viya module, representing a difference of MVR 2,402.

The Auditor General’s Office, headed by Auditor General Hussain Niyazy, also found that the Vilufushi Council Secretariat had failed to prepare and submit its 2024 annual report and financial statements for audit within the statutory deadline.

The audit further identified weaknesses in the management of bank and fund balances, alongside a failure to maintain bank reconciliation records.

When auditors conducted their own reconciliation, they found that the council’s total available cash was MVR 110,766 lower than the amount recorded in the secretariat’s official accounts.

The council secretariat attributed the difference to payments made in 2024 for outstanding bills carried over from the 2023 budget. However, the audit report noted that the council had not explained the remaining discrepancy after adjustments were made for those payments.

The Auditor General instructed the council to identify the causes of the discrepancies, make the necessary adjustments to its accounts, and maintain proper financial records moving forward.

The council was also directed to regularly update and complete information on its financial transactions in the Viya module, established by the Local Government Authority (LGA), to ensure its financial statements accurately reflect its true financial position.

The audit report further stated that if the cause of the cash variance cannot be identified, or if there is an unaccounted shortfall in funds that should be held by the secretariat, the matter could constitute an impermissible act under the Public Finance Regulations.

In such circumstances, the Auditor General advised that the matter be investigated through mechanisms established by the relevant minister and that appropriate action be taken against any parties found to have been negligent.

Efforts by MV+ for a comment from the Vilufushi Council regarding whether the remaining cash discrepancy has since been identified were unsuccessful. Requests for comment sent to former Council President Mohamed Jabeen also went unanswered.

The financial findings cover a period governed by the previous MDP-majority council led by Council President Mohamed Jabeen. A new PNC-majority council assumed office on 17 May of this year.