The Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Gurabo. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The report reveals that, contrary to the legal framework, the Municipality awarded 22 contracts and 65 amendments to a partnership that was not registered in the Department of State and to a corporation that was registered as a regular one instead of being registered as a professional services corporation. The services contracted for $2.3 million to the partnership and $37,000 to the corporation were to provide services for the design of plans, inspection and supervision of construction projects. The president of both entities was the same person.
The one-finding audit further points out that the Municipality did not request, nor obtain from the partnership or the corporation, a copy of the professional licenses certifying them to offer the contracted engineering and architecture services. These situations were referred on October 30 to the Examining Board of Engineers and Land Surveyors of Puerto Rico, to the president of the Association of Engineers and Land Surveyors of Puerto Rico, to the Examining Board of Architects and Landscape Architects of Puerto Rico and to the president of the Association of Architects and Landscape Architects of Puerto Rico, so that they may take the corresponding measures.
In addition, our auditors identified that neither the partnership nor the corporation submitted the performance bond documents or the public liability policy for 21 contracts and seven amendments, contrary to Act 81-1991 on Autonomous Municipalities. This situation left the Municipality without a guarantee to respond for the commitments in case of noncompliance by the contractors.
This report is the third and final one of the Municipality of Gurabo. The Report covers the period from January 1, 2013 to December 31, 2016.
See Audit Report M-19-18.
To see other published reports, visit our Audit Reports section.
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