The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the fiscal operations of the Confiscations Board of the Department of Justice.
The four-finding Report reveals deficiencies in the disbursements made to the company contracted to provide a storage lot, the custody of the confiscated units, and the services provided at the auctions. The evaluation of a sample of the invoices issued from 2013 to 2015 demonstrated overpayments to the contractor amounting to $21,430.
In addition, our auditors identified a discrepancy regarding the status of 18 units valued at $39,440. These units were active in the Lot Registry even though the Valuation System registry reflected that they had already been auctioned or recycled. This situation prevents the Board from maintaining up-to-date and reliable records of the confiscated units.
The audit detected that the Board took up to 216 days to notify a confiscation when the law provides for 30 days. This situation has led to challenges to the confiscations and adverse judgments against the Board in the courts, which as of December 31, 2015 had a balance of judgments pending payment of $4.4 million.
Other findings reveal that, for three and a half years, the Accountant did not prepare the bank reconciliations of Fund 240 (funds for the Board's operational expenses), nor did the Accountant record the obligation of funds on time. In addition, there is no regulation for the appraisal process of the confiscated units, and the regulations to govern the Board's operations had not been updated.
See Audit Report DA-17-17
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