The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the purchases of equipment, food, and materials, and the control of property of the School Food Authority of the Department of Education.
The Report reveals that the lack of adequate planning led the Authority to disburse $213,732 on 138 pieces of kitchen equipment (stoves, convection ovens, and blenders) between 2012 and 2014, which had not been used or distributed to school cafeterias after two to four years had elapsed since the purchase. In addition, a purchase order for $74,925 was not referred to the Bidding Board as provided by Regulation 7040 of 2005 for purchases whose amounts exceed $50,000.
The four-finding audit notes, with respect to the purchasing process, that in 78% of the orders requisitions were not prepared and in 42% of the orders goods and services were split in order not to exceed the authorized amount of $6,000 daily in purchases. In addition, we identified that the Warehouse Chief carries out the conflicting functions of receiving and safeguarding the equipment, while also acting as a delegated buyer (since 2014).
Our auditors determined multiple deviations with respect to property. For example, the Property Custodian did not conduct a physical inventory when she began her duties in 2014 and did not reconcile the 2016 physical inventory against the property subsidiary ledger.
In a physical inspection of the Storage Warehouse, it was observed that it was not protected with windows and the equipment was not classified as serviceable or unserviceable (see photos in Appendices 1 and 2). We also observed chairs, tables, and waste carts to be repaired outside the Equipment Repair Warehouse, which may cause them to deteriorate and become unrepairable (see photo in Appendix 3). As a norm of sound administration and internal control, agencies must establish the necessary measures to comply with Act 230 on the custody, care, and physical control of public property.
The Report covers the period from January 1, 2012 to December 31, 2016.
See Audit Report DA-18-02
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