The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the fiscal operations related to the management and control of the operational budget, human resources, the construction of permanent works and improvements, and the accounting of the Municipality of Lares.
The Report reveals that for fiscal years 2013 through 2015 the deficits reached $3.2, $1.7 and $2.3 million respectively. In addition, the Municipality incurred overdrafts of $1.2 million as of December 31, 2015. Operating with a deficit reduces the resources available for the following fiscal year and overdrafts affect credit with suppliers. Similar situations had already been commented on in Audit Report M-14-53 of June 9, 2014.
The four-finding audit notes that the Municipality built a half-court for $9,440 in the Los Luciano sector on land that was not its property but that of a private individual. In addition, the Municipality did not submit to the Municipal Legislature the signing of an agreement with the Department of Transportation and Public Works under which the Joaquín Castro School was transferred. In fact, the School was demolished with the intention of building a court, but the ownership of the land was registered in the name of a private person.
Our auditors identified that 37 employees had been classified as temporary for up to 8 years. In addition, the Municipality kept inactive for up to 17 years 153 special funds for $2.5 million and, for up to 10 years, eight bank accounts of special programs for $252,705. The Municipality's officials could not explain the reasons for this situation, which hampers accounting and fosters the commission of errors and irregularities.
The audit comments that as of December 31, 2015, the Municipality had seven civil lawsuits pending resolution by the courts and had not recovered $18,104 as recommended in Reports M-10-04 of July 31, 2009 and M-12-22 of September 27, 2011.
The Report covers the period from July 1, 2012 to December 31, 2015.
See Audit Report M-17-34.
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