Press Releases

The Office of the Comptroller of Puerto Rico issues an adverse opinion on the fiscal operations related to the income and accounts receivable of the Administration for the Development of Agricultural Enterprises.

The Report reveals that ADEA does not have updated or reliable records of the accounts receivable. As of March 31, 2016, the Administration had 20,112 accounts receivable pending for $68.9 million, and 82% of these accounts exceeded one year past due.

In this regard, our auditors identified multiple deficiencies such as the fact that account statements are not sent to notify debtors of the updated balances, files without evidence of collection efforts, first collection invoices sent up to 10 years later, and second collection invoices up to 6 years after the expiration of the first collection letter, among others.

These situations show that the directors of the Office of Financial Affairs departed from what is regulated in the Collections Manual and from the provisions of Article 22 of Reorganization Plan 4 of 2010 approved by Act 182-2009, on the Reorganization and Modernization of the Executive Branch 2009.

The two-finding audit also points out multiple deficiencies with the granting of contracts for the lease of ADEA's lands and structures. For example, the administrators of ADEA did not submit to the Treasury Department the information on the contracts granted. In addition, it was detected that in one of the cases there was no contract and that the land was used to operate a supermarket instead of operating a project with an agricultural purpose.

The Report further indicates that none of the lease files had the public liability insurance policies, none of the lessees complied with the monthly payment of the lease canon, and others had contracts that were more than 10 years overdue.

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

See Audit Report DA-17-37

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