The Comptroller of Puerto Rico issues a qualified opinion on the fiscal operations related to the internal controls, the construction of permanent works and improvements, the acquisition of services, the purchase of goods, the disbursement of funds, the collections, and the municipal accounting of the Municipality of Rincón. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that, contrary to the legal framework, the Municipality contracted a regular corporation instead of a professional one for the construction of a multidisciplinary center in the Pueblo ward, for which it disbursed almost a million dollars. This situation was referred to the College of Engineers and Architects of Puerto Rico in 2017 so that it would take the corresponding actions, since the corporation was not authorized to practice engineering or architecture.
The 14-finding audit notes that a contractor carried out work on the construction of the Rincón Welcome Arcade Project before the approval of a change order and with a contract with retroactive effect. Retroactive contracts are illegal.
None of the mentioned projects had the permit from the Permit Management Office (OGPe) before beginning construction. Similar findings had already been commented on in Audit Report M-15-36 of 2015.
Our auditors identified that $13,609 was paid in excess to a retiree who held several trust and regular positions in Rincón. In addition, the Municipality kept transitory employees, whose appointments should not exceed one year, for up to more than 15 years.
Contrary to Act 81-1991 of Autonomous Municipalities, the Finance directors did not obligate the budgetary credits for the payment of 50% of several contracts granted since 2008. In addition, they submitted the contracts to the Office of the Comptroller up to 16 months later and never notified the Office of the Comptroller of the 30 accidents with municipal vehicles that occurred from 2012 to 2015.
The Report comments that as of June 30, 2016, the Municipality had nine lawsuits totaling $3 million pending resolution in the courts, and the amount of $59,358 that had been recommended in two audit reports of 2015 had not been recovered: M-15-19 and M-15-36.
The Report covers the period from July 1, 2012 to June 30, 2016.
See Audit Report M-18-25.
To see other published reports, visit our Audit Reports section.
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