The Office of the Comptroller of Puerto Rico issues a partially adverse opinion on the fiscal operations related to the administration of the budget, purchases and disbursements, professional services and donations of the Municipality of Yauco.
The audit reveals the purchase without public bidding of 23 bronze and stainless steel sculptures for $555,500 (see photos in Appendix 2 of the Report). Our auditors observed that one of the sculptures, which had gone three years without being installed, was stored in a container, so that purchase served no purpose. These expenses did not comply with the standards of usefulness, modesty and need, even more so when Yauco's accumulated deficit increased from $4.5 to $5.7 million from 2014 to 2015.
The five-finding Report points out that the Municipality owes almost a million dollars to the Department of Labor and the Department of the Treasury since 2015 and has no payment plan. These situations aggravate Yauco's fiscal situation since it is forced to pay interest and penalties.
Contrary to Act 81-1991, on Autonomous Municipalities, the Director of Finance did not obligate the budgetary appropriations to pay 31 contracts and three amendments for $420,050 until almost two years later. In addition, payment of 38 vouchers for $39,600 was authorized with invoices lacking information about the work performed and another nine vouchers for $9,850 without the certification regarding the absence of interest on the part of Municipality employees.
The Report comments on an apparent certification of endorsements for the candidacy of an official for senator at-large during working hours, contrary to the PR Electoral Act. This situation was reported to the Secretary of Justice, to the Executive Director of the Office of Government Ethics, to the State Elections Commission and to the Electoral Comptroller.
In addition, it points out that the Municipality has taken steps to address the fiscal crisis, has payment plans for almost $3 million with the Aqueduct and Sewer Authority, the General Services Administration and the Retirement Systems Administration, and that the notification of an irregularity to the Secretary of Justice, the Office of the Comptroller and Government Ethics regarding the misappropriation of $31,652 by an employee has been resolved.
Other special comments indicate that the Municipality has 13 civil lawsuits for $1.4 million pending resolution, that it is failing to comply with an agreement with the Federal Department of Labor regarding the payment of hours owed to 177 employees and that it has not recovered $4,494 recommended in Audit Report M-15-04.
The Report covers the period from January 1, 2013, to December 31, 2015.
See Audit Report M-18-12
To see other published reports, visit our Audit Reports section.
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