The Office of the Comptroller of Puerto Rico issues a qualified opinion on the fiscal operations of the Municipality of Juncos. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals delays of two years in the preparation of the Monthly Report of Revenues and Disbursements and up to 23 months in the preparation of the bank reconciliations. This situation prevents having complete and reliable information on the financial situation of the Municipality. In addition, the audit detected deficiencies with the collections such as delays in making the deposits or reports that were not signed by the collectors. Similar situations had already been commented on in Audit Report M-15-34 of 2015.
Our auditors detected that the Municipality has kept 369 employees classified as temporary for as long as 27 years, distorting the merit principle in public service and contrary to law and regulations. In addition, it kept seven employees on assignments at public schools, Head Start centers and at the Puerto Rico Police without requesting authorization from the Municipal Legislature or making written agreements. Audit Report M-15-34 of 2015 also commented on a similar situation.
The seven-finding Report notes that the Internal Audit Unit did not conduct periodic audits of the controls and operation of the two mechanized accounting systems used by the Municipality, one until June 2015 and the other since March 2015. In addition, the property module was not used and after 24 months remained in the process of implementation.
The Report comments that Juncos had accumulated deficits in the Operational Fund of $8.5, $8.6 and $5 million for the years 2014 to 2016 respectively and overdrafts in 91 municipal funds for $13 million. In addition, as of June 30, 2017, it had not recovered $17,241 recommended in the 2013 and 2015 audit reports.
The Report covers the period from January 1, 2014 to June 30, 2017.
See Audit Report M-18-39.
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