The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of San Germán. A qualified opinion is issued when the instances of noncompliance, individually or together, are significant but not pervasive.
The Report reveals that the municipality invested $315 thousand in an Open Tube Slide and another Closed Tube Slide for the San German Surf & Fun Water Park in 2012, which have not been installed and remain under the brush behind the park (see photos in appendix 1 of the Report). The then director of Project Management did not properly plan nor take into account the costs associated with the installation of the five pieces of equipment that the Municipality acquired for $1.4 million in 2012. This situation caused San German to invest resources in equipment that has had no use.
The audit notes that the Municipality had accumulated deficits in the Operating Fund of $2.7, $2, and $1.9 million for fiscal years 2015, 2016, and 2017, respectively. In addition, the Human Resources director certified that San Germán had 50 temporary employees for up to 15 years. Similar situations had already been noted in Audit Report M-16-15 of January 25, 2016.
Following a settlement agreement, $13,089 was paid to an employee who was dismissed in 2014 and reinstated in 2015. This situation caused the Municipality to disburse that amount without receiving any service for nearly a year.
As of June 30, 2017, 11 civil lawsuits against the Municipality for $5.3 million were pending resolution by the courts. In addition, two cases filed before the Public Service Appellate Commission on personnel administration matters remained pending resolution.
This, the first report of the Municipality of San Germán, covers the period from January 1, 2015, to June 30, 2017.
See the Audit Report M-19-37.
To see other published reports, visit our Audit Reports section.
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