The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the fiscal operations related to the selection, award, and administration of proposals, professional services, and purchases and disbursements of the Southeast Local Workforce Development Area.
The Report reveals several situations of overpayment by the LWDA. In March 2013, due to a mathematical error, $1,259 was overpaid to an employer for reimbursement of on-the-job training, contrary to federal regulations. From 2012 to 2013, the LWDA paid $7,874 in excess of what was agreed in the contract for legal services, in violation of Act 81-1991 and the Regulation for Municipal Administration.
In addition, the Report comments that, also due to an error, some payments were authorized in excess of the limit established in the federal regulations of the Workforce Investment Act of 1998 (WIA). This caused the overpayment of $88,391 for reimbursements related to on-the-job training contracts.
The five-finding audit notes that the LWDA Development Board was supposed to meet six times per year. In four years it met only eight times and with extremely scarce participation that did not reach even 42% on average of its full membership. This situation may lead to the validity of the agreements adopted by the Board being questioned.
Other deficiencies relate to budgetary credits of more than half a million not obligated for the payment of six contracts, and the absence of internal controls in the operations of the materials warehouse.
The Report covers the period from July 1, 2012 to June 30, 2016.
See Audit Report M-18-05
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