Subject:
The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the fiscal operations of the Municipality of Las Piedras related to the management and control of the budget, the construction of permanent works and improvements, the purchase of goods, the acquisition of services, and municipal accounting.
The 11-finding Report reveals accumulated deficits in the Operational Fund of $2.4, $6, $3.3 and $3 million respectively from 2012 to 2015. The Municipality also incurred overdrafts in 24 funds for $3.3 million. Operating with a deficit affects services and overdrafts in the funds create an undesirable and precarious fiscal situation. Similar situations had been recorded in Audit Report M-14-23 of January 15, 2014.
Contrary to Act 161-2009 on the Reform of the Permit Process of Puerto Rico, the Municipality awarded three contracts for more than $600,000 to carry out works at the Community Center of the Boquerón ward and in the waiting room and other areas of the Diagnostic and Treatment Center (CDT), without the required construction permits. In addition, it contracted two companies to manage the CDT's Emergency Room without the approval of the Municipal Legislature.
Our auditors identified multiple deficiencies with the $175,330 granted as a donation to a volleyball league. In addition, the $1.1 million in funds assigned by the Legislative Assembly were not deposited in special accounts but in the Municipality's checking account.
On the other hand, our auditors did not find 11 pieces of equipment for $24,078, nor two disbursement vouchers for $690,000 related to the purchase of a building located in the town center and of a plot of land. In this regard, the Report comments that the Municipality acquired a building in the town center for $650,000 to relocate the offices of the Head Start program and then changed the purpose to rent the space to an alcoholic beverage business. However, this business never materialized (see photos in Annex 1). Likewise, the Municipality acquired for $50,000 a plot of land in the Collores ward to build a Community Center that was never built (see photos in Annex 2).
The Report covers the period from January 1, 2012 to June 30, 2015 and is available at www.ocpr.gov.pr.
See Audit Report M-17-33.
To view other published reports, visit our Audit Reports section.
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