The Office of the Comptroller of Puerto Rico issued a qualified opinion of the fiscal operations of the Pilotage Commission of Puerto Rico related to the promulgation of regulations, issuance of licenses, establishment of rates, and credit card transactions, among others. A qualified opinion is issued when individual or combined noncompliance is significant, but not pervasive.
The Report reveals that the Commission carried out 17 transactions for $1,892 with the credit card, without the prior authorization of the Office of Management and Budget, contrary to Act 3-2017, Act to Address the Economic, Fiscal and Budgetary Crisis to Guarantee the Functioning of the Government of Puerto Rico. This situation was referred for the consideration of the executive director of the Office of Management and Budget on May 21, 2021.
The four-finding audit points out that the Commission had not established written rules to regulate the use of the credit card. The absence of rules allows uniform procedures not to be observed and the inappropriate use of credit cards.
The Comptroller's auditors identified the lack of procedures for operations related to collection efforts and the absence of a procedure for collecting the pilots' fees. In addition, the handling sheets for the vessels of the apprentice pilot in training lacked the required information on the measurements and tonnage of the vessel, geographic area or port, the weather and 50% of those examined were not signed, contrary to Regulation 7213, on the Training Program for apprentice and probationary pilots, Resolution 2006-03, of 2006.
The Report found that pilots were appointed without the psychiatric examination requirement as provided by the regulations. This situation may cause the decisions made by them in the exercise of their functions to be challenged to the detriment of the Commission.
The audit comments that the swearing-in of three of the 11 commissioners appointed by the governors from 2012 to 2019 is not on record at the Department of State. In this regard, it is recommended that the Secretary of State ensure compliance with Regulation 23 on the rules for the filing, conservation and disposal of the Government's fiscal documents.
The Pilotage Commission of Puerto Rico was created through Act 226-1999, for the purpose of regulating the activity of pilots, who provide services of directing the course of vessels toward the coasts or ports of Puerto Rico. This Report covers the period from January 1, 2015 to January 22, 2021
we included the results of the compliance audit that we conducted of the Pilotage Commission of Puerto Rico (Commission). We did so based on the authority conferred upon us in Article III, Section 22 of the Constitution of the Commonwealth of Puerto Rico, and in Act No. 9 of July 24, 1952, as amended; and in compliance with our Annual Audit Plan.
See Audit Report CP-22-04.
To see other published reports, visit our Audit Reports section.
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