The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the operations related to the transfers of credits between budget items, the payment of staff leave, the bids, and the contracting and construction of permanent works and improvements in the Municipality of Peñuelas.
The Report reveals multiple deficiencies in the 487 credit transfers totaling $6.5 million. For example, funds were transferred without the surplus certification from the Director of Finance, several resolutions authorizing the transfers were submitted late to the Municipal Legislature, and others were not even consulted with the Legislature. Similar situations had been noted to the municipality in 2014 in Audit Report M-14-55.
The audit shows that the Municipality made overpayments of $33,668 to employees for the settlement of sick and vacation leave. In addition, it awarded goods and services to bidders who did not submit the best offers; for example, $39,774 was paid —some $6,000 to $14,000 in excess— over the offers of other suppliers for the sport SUV for the Mayor's Office. The Municipality also acquired five 4 x 4 SUVs that were awarded to the highest bidder, some $11,810 above the lowest proposal.
The seven-finding Report also notes that professional services were paid with federal funds without obtaining proposals, construction work was carried out without formalizing a change order or obligating the funds, and contrary to the rules of sound public administration, important documents were missing from the files of seven municipal projects.
The Report covers the period from July 1, 2012 to June 30, 2015.
See Audit Report M-17-29.
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