The Office of the Comptroller of Puerto Rico issues a partially adverse opinion on the fiscal operations related to accounting, revenues, collections, disbursements and internal controls of the Municipality of Guánica.
The six-finding Report reveals deviations from law and regulations through the payment of penalties and surcharges due to delays in paying debts owed to government agencies. For example, as of June 30, 2015, the Municipality owed $112,740 to the Department of Labor and the Department of the Treasury. Furthermore, it had to pay $42,407 and $18,182 respectively to the Retirement Systems Administration and the Internal Revenue Service, in interest alone for late payments.
In addition, Federal Social Security seized $264,947 from the Municipality's accounts because it failed to remit the withholdings made from employees. These situations aggravate the Municipality's fiscal situation, affect services and prevent employees from accessing the benefits to which they are entitled.
The audit points out that from 2007 to 2015, contrary to Act 179-2002, $1.6 million in funds allocated by the Legislative Assembly were transferred to be used for purposes other than those for which they were approved. In addition, multiple deficiencies were evidenced in bank reconciliations, fiscal records, and the lack of controls and procedures in collections. Some of these findings had already been noted in Report M-14-14 of 2014.
Our auditors identified that the Municipality contracted, for $16,900, the performance of an operational audit that proved useless, and that as of June 30, 2015 it kept funds amounting to $234,788 inactive for more than 12 months. This situation hinders accounting and deprives the Municipality of economic resources that could be used.
See Audit Report M-17-21.
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