The Office of the Comptroller of Puerto Rico issued a favorable opinion on the fiscal operations related to the contracts and disbursements for debris removal in Utuado, following the passage of Hurricane María. The tests performed and the evidence in our possession revealed that these operations were carried out in accordance with the applicable law and regulations. The Report also includes three comments that do not necessarily imply violations of laws and regulations but that are significant for the operations of the audited entity.
The audit points out that Utuado has accumulated deficits in the Operational Fund of $1.5 million for 2016 and $1.2 million for 2017. A similar situation regarding the deficit had been commented on in Audit Report M-19-14 of November 14, 2018. Nevertheless, the Municipality has reduced the deficit by 60% over the past five years, and it is recommended that it continue with the administrative measures necessary to eliminate it.
In addition, the Municipality has yet to address the recovery recommendations of $1.6 million indicated in previous audit reports. For example, it must recover $908,052 for payments made to 25 contracts and seven amendments that were not registered with the Office of the Comptroller, and $557,992 for payments made to 14 contracts granted with retroactive effect. Utuado must also recover $147,316 from payments made to contractors for services that were not rendered or that were performed outside the term of the contracts.
The Report also comments that, as of June 30, 2018, Utuado had four civil lawsuits pending resolution totaling $1.6 million. The Report covers the period from July 1, 2015 to November 30, 2018.
See Audit Report M-19-35.
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