The Office of the Comptroller of Puerto Rico issues an adverse opinion on the fiscal operations of the University of Puerto Rico at Arecibo.
The Report reveals that officials of the University of Puerto Rico at Arecibo and employees of the hotels where seven continuing education workshops were held, conspired to conceal improper expenses of $35,603. Our auditors uncovered a scheme of misappropriation of public funds and extravagant and excessive expenses on alcoholic beverages, clothing, perfumes, spa services and even lodging expenses on dates before and after the workshops. In the scheme, the officials asked the hotel employees to alter the invoices and supporting documents (see diagram on page 11 of the Report).
This situation was referred to the Department of Justice and the Office of Government Ethics on September 30, 2016. On May 25, 2017, the prosecutors of the Office of the Independent Special Prosecutor filed 63 charges against the then-rector of UPR-Arecibo and his son, the coordinator of the CRECE 21 project, the special assistant to the then-president of the UPR and the then-rector of UPR-Cayey. The Court of First Instance of San Juan found cause for arrest against all the defendants for aggravated illegal appropriation, illicit gain, embezzlement of public funds and violations of the Government Ethics Act. On March 28, 2018, a judge determined cause for trial and the proceedings continue before the Court.
With respect to this situation, the Report comments that the invoices altered by the hotel employees, were certified by the Accounts Receivable coordinator of hotel A and the Credit manager of Hotel C. In addition, at the request of the coordinator of the CRECE 21 project, certifications of non-consumption of alcoholic beverages were prepared, knowing that this was not true.
In other activities held at Hotel C, unnecessary, extravagant, excessive and illegal expenses of purchases in the restaurants, bars and convenience store were identified that amounted to $3,828.71. These expenses were charged to the rooms assigned to the director of the CRECE 21 Project who asked the Credit manager of the Hotel to transfer the incidental expenses to the master folio of the activity and the names of some guests were replaced by UPR-Staff.
The two-finding audit notes that the officials of the Division of Continuing Education and Professional Studies (DECEP) of UPR-Arecibo, did not ensure that the teachers who took the trainings, complied with the requirements stipulated in the contract between UPR-Arecibo and the Department of Education (DE). For this reason the DE did not pay UPR-Arecibo $695,952 of the $1.5 million billed. For example, in a workshop given to 100 kindergarten teachers, 27 of them did not qualify, and in a workshop for 100 teachers on the teaching of the mother tongue, 63 of them did not qualify. Nevertheless, UPR-Arecibo paid for the expenses incurred for lodging, food, parking, materials and the facilitators.
The Report covers the period from January 1, 2010 to December 31, 2013.
See Audit Report CP-18-13.
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