Audit flags major cash‑handling lapses and pension violations at Vashafaru Council

The 2022 compliance audit of the Vashafaru Council has revealed serious lapses in cash handling and employee pension enrolment.

According to the Auditor General’s Office, the council kept large amounts of cash inside the office instead of depositing the money into its bank account as required. The audit team found MVR 93,644 stored in the council office during the 2022 audit period, after counting the cash over two days. 

When the cash was counted again on 22 October 2023, in the presence of two council staff, MVR 69,068 was found inside a lockable locker. 

Three days later, on 25 October 2023, the council informed auditors that additional money had been found inside a paper box in the office. A further MVR 24,576 was counted, including MVR 6,955 in old notes and MVR 17,621 in current notes. 

The audit also noted that the council failed to deposit revenue regularly in 2020 and 2022, based on bank statement reviews. 

The Auditor General’s Office advised the council to deposit all revenue on the day it is received, or, if kept temporarily in a secure location, to deposit it once daily with the approval of the office’s Finance Executive.

In addition to cash‑handling issues, the audit found that some employees working on contract and wage basis were not enrolled in the pension scheme, and pension contributions were not deducted from their salaries, in violation of the Pensions Act. 

The report instructed the council to ensure that all eligible employees are included in the retirement pension scheme without delay.