The Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Administración de Terrenos related to the lease contracts. A qualified opinion is issued when the noncompliance, individually or in the aggregate, is significant but not pervasive.
The Report reveals that, as of December 31, 2018, the Administration had 158 overdue accounts pending collection in the amount of $2.7 million. The director of the Budget Office indicated that, in the Administration, the accounts receivable reports were not prepared. In addition, in the examination of a sample, it was found that legal collection efforts had not been made on 25% of the accounts.
The fact that the Legal Services Office did not carry out collection efforts causes the accumulation, aging and the accounts becoming uncollectible. These situations, contrary to the Accounts Receivable Regulation, prevent the Administration from maintaining adequate control.
The two-finding audit also points out that in 33% of the lease contracts granted between 2015 and 2017, the lessees did not obtain the public liability policies. In addition, as of January 29, 2019, 66% of the lessees had the policies expired for more than three years. These situations leave the Administration without a guarantee in the event of a judicial claim.
The Report covers the period from July 1, 2015 to December 31, 2018.
See Audit Report CP-20-05.
To see other published reports, visit our Audit Reports section.
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