The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the operations related to lawsuits, disbursements, permanent works and improvements, and collections of the Municipality of Coamo.
The Report reveals that the Municipality had overdue accounts receivable of nearly $200 thousand since fiscal year 2011 for which no collection efforts were made. The audit also notes that the Municipality did not address the recovery recommendations of $185 thousand indicated in Audit Report M-15-14. Not making collection efforts is contrary to Act 81-1991, Autonomous Municipalities Act, and leads to accounts becoming uncollectible.
The nine-finding audit points out deficiencies with the transfers of credits between line items, the lack of clauses in the contracts, and deficiencies in five construction projects for $3.6 million whose works began without previously obtaining the permits from the Permit Management Office as provided by Act 161-2009, among others.
The Municipality registered and submitted 700 contracts and 137 amendments to the Office of the Comptroller, 375 days later than provided in Regulation 33, Registry of Contracts. In addition, the required investigations were not carried out in 37 motor vehicle accidents, nor in the loss of 28 units of property valued at $4,738. Similar situations had already been noted in Audit Report M-15-14.
The Municipality of Coamo paid $19,981 to a contractor for the construction of a little league complex, knowing that a supplier had claimed payment of $16,066 for the materials of that project. Following a process of lawsuits and claims, the Municipality paid $16,066 to the project's insurance company and disbursed $13,335 for interest and fee expenses without receiving any service. The Municipality should have established in Court that the money claimed by the plaintiff had already been paid to the contractor, for which reason the supplier should have claimed from the contractor, not from the Municipality.
As of December 31, 2015, two civil lawsuits for $715,826 were pending resolution by the courts.
The Report covers the period from July 1, 2012 to December 31, 2015.
See Audit Report M-17-40
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