The Office of the Comptroller of Puerto Rico issued a qualified opinion of the fiscal operations of the Office of the Governor (OG). A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The Report reveals that the Office of the Governor paid the rent of a premises without having formalized a written contract in several periods from 2013 to 2018. The OG paid $54,331 in non-consecutive periods between 2013 and 2016, and $34,531 in 2017 and 2018 for a 2,616-square-foot property that was used as a warehouse. This situation, contrary to the applicable law and regulations, caused the improper payment of $90,862 since, in the absence of written contracts, there was no obligation to pay the rent.
The one-finding audit notes that the Finance director approved payments in excess of $174 over what was agreed in one of the contracts formalized from September 2, 2014 to June 30, 2015. This situation constitutes a violation of the legal provisions that regulate the proper use of public funds.
The Report publishes four special comments on deficiencies in internal controls in the operations of the Office of the Governor.
The auditors detected that the OG paid $313,807 for the lease of 14 vehicles without having a written contract that clearly and precisely established the obligations between the parties and that the same had been registered at the Office of the Comptroller. The contracts for eight of the vehicles were between the supplier and the committee or party during the electoral period. The remaining six vehicles had a registration sheet in the name of the OG, but this did not comply with the formal requirements of government contracting.
One of the vehicles was assigned to the governor's representative before the Fiscal Oversight Board, despite his being an ex officio member of the Board. This action is contrary to the applicable laws and regulations, since the assignment of vehicles is limited to certain public officials.
The General Services Administration (ASG) has under its jurisdiction the administration of all motor vehicles used by the Executive Branch. The Acquisition Regulation of the General Services Administration of 1986 prohibits the leasing of motor vehicles in excess of 90 days.
The examination indicated that the four waiver requests that the OG submitted to the ASG were requested after leasing the vehicles. The acting administrators of the ASG approved the OG's waivers knowing that they did not comply with the ASG's own laws and regulations, since the lease was continuous and what was appropriate was to conduct a public bid. The OG also did not have the ASG's waiver to contract outside the Single Registry of Bidders (RUL).
The audit reveals that an official who never took the oath of office occupied the position of aide to the governor from July 1 to August 16, 2019, while at the same time holding a contract in force with the Innovation Fund for Agricultural Development (FIDA). In addition, the official, while in the position as director of the Office of the First Lady, formalized a contract with the Department of Correction and Rehabilitation (DCR) effective August 1, 2019.
The employee did not comply with the prohibition on double compensation since, while earning $9,000 monthly as an official, she billed $8,887 to the FIDA and the DCR for services rendered during the same period in the position. This situation, contrary to the Political Code, was due to the administrator and the Human Resources director not ensuring that, upon occupying the position, she did not have contracts with other government entities. The Report covers the period from January 1, 2013 to January 31, 2019.
See Audit Report DA-23-07.
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