The Office of the Comptroller of Puerto Rico issues a qualified opinion on the fiscal operations of the Municipality of Las Piedras. A qualified opinion is issued when the noncompliances individually or together are significant but not pervasive.
The Report reveals that the Municipality contracted a company for $2.7 million for debris collection without it being authorized by the Public Service Commission of Puerto Rico or having the permit to operate from the Environmental Quality Board. This situation was referred to the Secretary of Natural Resources and chair of the Environmental Quality Board, and to the president of the Public Service Commission on August 30, 2018 so that they take the corresponding actions.
The one-finding audit notes that contrary to the regulations in effect, the company also did not obtain authorization from the Commission to operate the 11 trucks it used in the service, did not remit to the Commission the public liability insurance required annually, and five of the eight drivers did not have a Commission license.
Contrary to the regulations in effect, the Municipality did not include in the six contracts and seven amendments with the provider the clause requiring contractors to indicate on their invoices the place where they deposit the debris. This situation did not allow our auditors to verify the legality and accuracy of the invoices submitted for payment.
The Report recommends that the mayor evaluate the recovery of the $2.4 million paid to the company through July 2016, because it did not have the Board's permit or the Commission's authorization to provide the debris collection and transportation service.
The Report, which covers the period from January 1, 2012 to June 30, 2015, is the second and last for the Municipality of Las Piedras.
See Audit Report M-19-11.
To see other published reports, visit our Audit Reports section.
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