The Office of the Comptroller of Puerto Rico issued a disclaimer of opinion on the fiscal operations related to the leasing of buildings of the Public Buildings Authority. The disclaimer of opinion is due to a scope limitation because the Financial Oversight and Management Board for Puerto Rico (JSF) and the Unsecured Creditors Committee (UCC) filed a legal action in the Bankruptcy Court.
The Report notes that the JSF and the UCC initiated a legal action on December 21, 2018, in which they allege that the Authority's leases are not subject to the provisions of Section 365(d)(3) of the Bankruptcy Code. The legal action questions the validity of the Authority's lease contracts, which are the subject of examination in this audit.
Therefore, we were unable to perform all the tests related to the leasing of buildings; a process necessary to obtain a reasonable basis and issue an audit opinion. Consequently, the Office of the Comptroller cannot conclude the examination, nor verify the correctness of the transactions until the Bankruptcy Court finalizes the legal process.
The Report covers the period from July 1, 2015 to September 30, 2018.
See Audit Report CP-20-07.
To see other published reports, visit our Audit Reports section.
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