The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the fiscal operations of the Municipality of Isabela related to budget administration and the use of the computerized accounting system.
The four-finding Report reveals deficiencies in bank reconciliations, revenues, and the monthly revenue and disbursement reports. For example, the reconciliations of the General, Stamps and Vouchers, CIMA and Citizen Contribution accounts reflected differences of up to $23,750, and the Municipality's bank reconciliations were up to 12 months behind. The respective adjustments were made at the beginning of 2016 in response to the management letter sent to the Mayor by our auditors.
In addition, as of June 2015, the Municipality did not keep a general ledger that could be reconciled with the bank accounts and the Monthly Report, nor did it maintain a reliable record of all accounts receivable.
The audit points out that the Municipality did not submit to the Office of the Commissioner of Municipal Affairs (OCAM) the list of past-due debts as of June 30, 2012, nor the accounts receivable of $111,286 as of June 30, 2015. By provision of law, past-due debts of two years or more must be reported to OCAM.
Our auditors identified $589,500 in inactive funds for periods of up to more than 11 months, and the lack of oversight of the computerized accounting systems by the Internal Audit Unit.
In the Special Comments of the Report it is noted that the Municipality of Isabela had to pay the Occupational Safety and Health Administration Office of the Department of Labor and Human Resources a penalty of $3,475 for violations, after the inspection of several municipal entities. In addition, as of June 30, 2015 it had three civil lawsuits for $105,000, pending resolution by the courts.
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