The Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Jayuya. A qualified opinion is issued when the noncompliance, individually or in the aggregate, is significant but not pervasive.
The Report reveals that the Municipality improperly paid $41,600 for work not performed on the construction project of an amphitheater, an electronic library, an auditorium and an activities hall for $1.5 million. Our auditors detected that, according to the plans, 108 seats and 10 metal doors were still to be installed.
The four-finding audit points out that the Municipality did not obtain quotes from at least three providers for the construction of a work. In addition, for that work it contracted for $74,478 a contractor that owed $196,910 to the Department of the Treasury. Even so, the Municipality processed several payments without making any withholding to pay the debt. This contractor delivered the project to the municipality unfinished, when the Treasury issued a Notice of Lien. To finish the project, Jayuya contracted another company without requesting quotes from at least three providers and invested an additional $6,889 over the original budget to finish the work.
The Monthly Income and Disbursements Report reflected, as of 2015, economic resources amounting to almost $2 million that had remained inactive for more than seven years. This situation deprived the Municipality of economic resources that could be reprogrammed and constitutes an inadequate administrative policy.
Contrary to the law and regulations in force, the Municipality authorized payments of $3,959 to an official for vacation and sick leave that were not appropriate. In addition, $1,079 was paid in excess to officials and employees due to errors in the computations made on the leave balances.
The audit notes that as of June 30, 2016, Jayuya had seven civil lawsuits for $5.2 million, pending resolution by the courts. The lawsuits are for damages, inverse condemnation and breach of contract.
This is the second report of the Municipality of Jayuya and covers the period from January 1, 2015 to August 31, 2017.
See Audit Report M-20-06.
To see other published reports, visit our Audit Reports section.
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