The Comptroller of Puerto Rico issues a qualified opinion on the fiscal operations related to the management and control of the operational budget, the disbursements, the construction of permanent works and improvements, and the collections of the Municipality of Cayey. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that the Municipality did not hold a public bidding to carry out additional work totaling $3.6 million for the expansion and improvements of the Area Hospital from 2013 to 2015. These were carried out through 24 change orders and a supplementary contract. In addition, the amount of the supplementary contract exceeded the 15% limit established by law for alterations to construction works, and the works related to the supplementary contract began two years before obtaining the construction permit from the Permit Management Office.
The six-finding audit notes that the award of the bidding for the construction of the Hospital and the execution of the $6 million construction contract were carried out without having the funds necessary to pay for the work. The Municipality also did not record the obligation of funds prior to the granting of several contracts and, in five change orders, up to 411 days after the work was completed.
Contrary to Act 81-1991 of Autonomous Municipalities, the Municipality spent more than $100 thousand on the participation of 135 people in the 2015 Fiesta Boricua de Bandera a Bandera in Chicago. This expense was neither indispensable nor necessary for the performance of the functions entrusted to the Municipality by law, nor does it conform to the austerity standards that should prevail in the efficient and effective use of public funds in times of economic crisis.
The Municipality paid $22,498 in fines, interest, and penalties for deficiencies in the federal social security remittances to the Federal Internal Revenue Service, for remitting the SUT late to the Department of the Treasury, and for delays in the reimbursement of rent paid in excess to the Federal General Services Administration.
Our auditors identified 193 employees classified as transitory for up to 22 years. By law and regulation, transitory appointments should not exceed one year so that the merit principle in public service is not undermined, among other reasons. In addition, from 2012 to 2017, the Municipality recorded contracts and amendments with the Office of the Comptroller up to two years later than required by Regulation 33 on the Registry of Contracts.
The Report comments that as of February 28, 2017, the Municipality had 19 civil lawsuits totaling $11.9 million pending resolution by the courts, a complaint from a former employee at the Office of the Women's Advocate, and a case before the Public Service Appeals Commission.
The Report covers the period from July 1, 2012 to February 28, 2017.
See Audit Report M-18-27.
To see other published reports, visit our Audit Reports section.
Some documents on this page are saved in PDF format.
To view these documents, you must have the following free program installed.
