The Office of the Comptroller of Puerto Rico issues a partially adverse opinion on the fiscal operations of the Municipality of Arecibo. The tests and evidence revealed deviations from provisions of law and regulations in the purchasing and disbursement process, the leasing of municipal properties, and the splitting of works.
The Report reveals that $539,888 was split into six contracts and three amendments, in order not to exceed the legal limit and to bypass the requirement to hold a bidding process. The works related to improvements to recreational facilities and the repaving of roads. In addition, from November 2011 to May 2012, the Municipality disbursed $105,066 for the construction of a walking track in the Dominguito ward, which it later abandoned for lack of funds. (see photos in Appendix 2 of the Report).
The 13-finding audit notes that, on June 20, 2016, the consideration of false quotes in the purchase of motor vehicle parts for $6,313 was referred to the Department of Justice. This situation may have constituted the crime of perjury defined in the Puerto Rico Penal Code of 2012, in addition to defeating the purpose of obtaining the best offer through free competition.
The Report reveals multiple deviations with the contract for the administration of the Manuel Petaca Iguina Coliseum, which as of December 2015 owed the Municipality $435,000. Other deviations relate to budgetary credits that were not obligated at the time contracts were awarded, but rather more than a year later, contrary to Act 81-1991 on Autonomous Municipalities.
Our auditors identified that Arecibo paid the sum of $23,827 twice for the same solid waste collection services in 2013. In addition, it did not undertake effective collection efforts to recover some $4 million in accounts receivable, nor did it dispose of the inactive funds that as of June 30, 2014 amounted to $10 million.
The Report covers the period from July 1, 2013 to June 30, 2015.
See Audit Report M-18-07
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