The Comptroller of Puerto Rico issued an adverse opinion on the operations related to the contracting of the private administrator of the Universal Service Fund of Puerto Rico. The tests performed and the evidence revealed that the contracting of this service was not carried out, in all significant aspects, in accordance with the applicable law and regulations.
The Report reveals that, from 2011 to 2017, the Bureau did not formalize a contract with the private company for the administration of the Universal Service Fund of Puerto Rico. This company provided services from 2007 to 2010 with a contract of $570,000, which was amended by $153,000 until 2011.
The one-finding audit notes that, starting in 2011, the Bureau made improper payments to the private company amounting to $1,031,028. This situation is attributed to the fact that the then-commissioners of the Bureau departed from the provisions of law and the contract. The Report recommends that the president of the Bureau recover the funds disbursed improperly.
Act 213-1996 and the Universal Service Regulation of 2009 establish that an independent administrator, through competitive bidding, administers the sums deposited in the Fund's account and supervises their disbursement to eligible telecommunications companies, among other provisions. From 2016 to 2019, the Fund generated revenues, independent of the Bureau, of $34,777,7434 and made disbursements of $16,947,596.
This second and final report on the Telecommunications Bureau covers the period from July 1, 2015 to June 30, 2019.
See the Audit Report CP-21-08.
To see other published reports, visit our Audit Reports section.
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