The 2023 compliance audit of Raa Angolhitheemu Council has uncovered multiple financial and administrative irregularities, including unapproved spending, weak procurement procedures, and poor record-keeping.

According to the audit report released by the Auditor General’s Office, the council exceeded its budget without completing the required procedures for approving a supplementary budget. The supplementary budget, which must be endorsed by the council and submitted to the Ministry of Finance, was not approved. Despite this, the council spent over MVR 500,000 without formal budget allocation, including funds provided by the Ministry of Youth to set up an outdoor gym, and money received from Dhiraagu for garbage collection services.

The report further noted that the council did not form a legally constituted bid committee in 2023 as required. Instead, procurement decisions were evaluated by an unauthorised committee lacking legal standing.

Additionally, the audit found that the council's treasury report was not prepared in line with public finance regulations. Although revenue was collected, the funds remained unused, and the report itself was not properly compiled. The council also failed to maintain a register of receivables, including rent from a boat under its control, which owed MVR 624,835 as of the end of 2023. No appropriate action was taken to recover the outstanding amount.

The report also highlighted the absence of a land registry. In line with regulatory requirements, councils must maintain detailed records of land plots rented out, vacant plots, and those allocated under land use plans.

Community engagement was also found lacking. The audit noted that the council failed to hold meetings with residents every four months as mandated.

Moreover, the report pointed to weaknesses in cash handling and asset management. Funds received by the council were not deposited into its bank account in accordance with regulations, and receipts for deposits were not properly documented. Bank account reconciliations were not performed, and there was no proper inventory of assets held in council warehouses.

The Auditor General has recommended that the findings be formally shared with the council and steps be taken to rectify the issues identified in the report.