The Comptroller of Puerto Rico issues a qualified opinion on the fiscal operations of the Municipality of Moca. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that in the construction files of six bridges in Moca for $619,583, documents were missing and the order authorizing the contractor to begin the project (notice to proceed) was not found for our auditors' examination. The municipal officials also did not provide evidence that the concrete tests performed on the bridges were certified by a licensed engineer.
The five-finding audit points out that for the design and supervision of the six bridges mentioned, the Municipality contracted Corporation B. This corporation, contrary to what was stipulated in the agreement, subcontracted the supervision of the construction of the bridges to an engineer through a verbal agreement and without the prior authorization of the Municipality.
Corporation B was also contracted for the inspection of the construction project of the Paseo de los Artesanos. However, this service was also subcontracted without prior authorization from the Municipality. For the Paseo de los Artesanos, which cost $2.6 million, the Municipality did not obtain a final as built plan because the Planning and Development directors did not request it from the corporation that built the Paseo.
The Report comments that the Municipality also contracted an engineer for $45,500 for the inspection of the construction of the six bridges. However, he delegated the inspection services to an employee of his office who was not a licensed engineer. In addition, the employee represented the engineer at 78 meetings related to the project and certified 14 monthly progress reports even though he was not authorized to practice the profession of engineering in Puerto Rico. This situation was referred to the Examining Board of Engineers and Land Surveyors of Puerto Rico and to the president of the Association of Engineers and Land Surveyors of Puerto Rico so that they may take the corresponding measures.
Our auditors identified 11 funds for $2 million that had remained inactive for almost two years and $110,613 in 10 bank accounts inactive for over two years. This situation deprives the Municipality of economic resources and complicates accounting.
The Report discloses multiple deficiencies with the management and control of property, which makes way for misuse and for irregularities to be committed. These situations are attributed to the fact that the person in charge of property departed from the regulatory provisions and to the lack of supervision by the Finance director.
From 2015 to 2017 the Municipality did not submit to the Secretary of Justice the documents of 11 resolved lawsuits and five active ones, as provided by Act 1-2003 on the Registry of Civil Lawsuits. As of June 30, 2017, nine civil lawsuits against Moca for $1 million were pending resolution.
The report covers the period from January 1, 2015 to June 30, 2017.
See Audit Report M-19-17.
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