Press Releases

The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the fiscal operations of the Bureau related to the wage incentives granted to an arts and culture employer and to a private nonprofit entity.

The Report reveals that, contrary to a contractual clause, the Bureau reimbursed $29,765 in wage incentives to an entity dedicated to the presentation of theatrical plays, variety shows, the organization of festivals, concerts, and artistic performances. Our auditors identified that this amount had already been covered by the Institute of Puerto Rican Culture for the presentation of a theatrical play.

On the other hand, the Bureau had formalized a $199,421 contract in 2013 with a private nonprofit entity dedicated to educating young people from marginalized communities. This entity was also improperly reimbursed $39,885 in wage incentives for the salaries paid to 43 participants. Contrary to clause four of the contract between the Bureau and the entity, these participants filled newly created positions when in reality they were already employees of the Department of Education.

The Report also recommends that the Governor and the Legislative Assembly of Puerto Rico amend Act No. 74 for the purpose of including clear and specific provisions on how to determine the surpluses of prior years of the Incentives Fund and the use of those surpluses to cover operational and administrative expenses of other Programs or Bureaus of the Department of Labor. The Special Comment reveals that the Secretaries of Labor and Human Resources from 2010 to 2013 issued nine administrative orders to authorize the transfer of $24.6 million from the Incentives Fund for other purposes within the Department, in the absence of clear and specific provisions in the law.

The Report covers the period from January 1, 2013 to October 31, 2016.

See Audit Report DA-17-26.

To view other published reports, visit our Audit Reports section.