The Office of the Comptroller of Puerto Rico issues a partially adverse opinion on the fiscal operations of the Municipality of Arecibo. The tests performed and the evidence revealed deviations from provisions of law and regulation regarding budget administration and some personnel transactions.
The Report notes that from 2010 to 2013 the Municipality took out five loans with the Government Development Bank for $14.4 million to pay debts, cover cash shortfalls and for financing expenses. Of the debts, nearly $13 million correspond to the former Mayor and $1.4 million to the Mayor. Despite the loans taken out, in April 2015 the Municipality still owed $5.4 million to several government agencies and to private entities. These situations affect the entities to which money is owed, force the payment of interest and penalties, and affect services to the residents of Arecibo.
The audit refers to the Secretary of Justice and to the Director of the Office of Government Ethics a situation regarding the improper use of sick leave by a municipal police officer. This employee requested 85 days of sick leave and was therefore disbursed $5,582. However, contrary to the provisions of the Regulation of the Municipal Police of Arecibo, she worked under contract at a law office while enjoying sick leave.
The 14-finding Report notes multiple deficiencies related to the purchase of heavy equipment, the acquisition of goods without obtaining the required quotations, and collections. The Municipality bought five trucks for $141,850 without disbursement vouchers, and as of May 2015 said property had not been recorded in the Property Module. In addition, goods and services were acquired for $187,018 without the required quotations as provided by Act 81-1991.
Our auditors identified that, contrary to Ordinance 3 of July 11, 2002, the former Mayor, seven officials and 16 employees attended the Puerto Rican Parade in New Jersey in September 2011 at a cost of $11,366. This situation reduced the resources available to provide essential and necessary services to residents.
See Audit Report M-17-35.
To view other published reports, visit our Audit Reports section.
Some documents on this page are saved in PDF format.
To view these documents, you must have the following free program installed.
