The Office of the Comptroller of Puerto Rico issues a qualified opinion on the fiscal operations of the Municipality of Canóvanas. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that purchases of toys for $21,993 were ordered without obtaining quotes from at least three suppliers in the market, and the buyers omitted information and the corresponding signatures on the documents. In addition, contrary to the law and regulations in force, the Municipality failed to formalize 106 contracts with suppliers awarded in bids from 2014 to 2016 and has kept 232 employees classified as temporary for as long as more than 23 years.
The audit recommends that the Secretary of Justice consider the participation of four employees and three officials of the Municipality of Canóvanas in political activities during working hours, and the consideration of false quotes in the purchase of t-shirts, lunchboxes and pants for $9,219 from 2015 to 2016.
The 10-finding Report notes multiple deficiencies related to the construction of permanent works and improvements. For example, three contracts were granted to complete repair work on the Jaime Rivera Hance athletic track, without the use permit from the Permit Management Office (OGPe). In addition, the contractor of the mini stadium in the Lomas ward, paid the construction excise taxes and the municipal license, 153 days after the construction work began.
Contrary to Act 81-1991 of Autonomous Municipalities, the Municipality overestimated revenues by $3.1 million in 2013 and $2.4 million in 2015. Also, 166 credit transfers were made from 2014 to 2016 for $2.9 million without the approval of the Municipal Legislature.
The Report comments that the Municipality has accumulated deficits of $3.4 million and overdrafts of $2.5 million as of June 30, 2016. In addition, as of June 30, 2017, $84,986 corresponding to Audit Report M-03-57 of 2003 had not been recovered.
On the other hand, the project to construct a multi-use building, a marketplace, an activity center and offices for rent for $5.3 million between 2002 and 2004 was not properly managed. The contractor of this project filed a lawsuit against the Canóvanas administration, which it lost for failing to appear at the hearing or defend the Municipality's interests. The Court's ruling ordered the Municipality to pay $1.8 million to the contractor.
The Report covers the period from July 1, 2013 to June 30, 2017
See Audit Report M-19-01.
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