The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Añasco. A qualified opinion is issued when noncompliance, individually or in the aggregate, is significant but not pervasive.
The Report revealed that the Municipality formalized contracts without having all the required documents. In Añasco 2,422 contracts were granted for $25.2 million for the fiscal years 2014 to 2016. From a sample it was detected, for example, that the contractors of the Boxing hall in the Dagüey park or of the construction of the Boulevard at Tres Hermanos Beach were not required to provide the public liability policy or its renewal, nor the bonds for the execution of the contract (performance bond), nor the bond to guarantee the payment of labor, equipment and materials of an amendment to a contract (payment bond).
These situations, contrary to Act 81-1991 on Autonomous Municipalities, left the Municipality without guarantees in the event that the contractor did not finish the work. In addition, it could have been detrimental to Añasco since it did not have policies to cover any accident that might occur.
The four-finding audit notes that the mayor did not comply with his duty to submit the suppliers' invoices or the certifications on the nature and necessity of the $23,510 in expenses incurred with charges to the credit card. The examination of the bank statements reflected expenses of $17,057 in restaurants, $4,988 in travel and hotels, and $829 in other expenses.
Contrary to the Regulations for Municipal Administration, in Añasco annual physical inventories of property were not conducted from 2012 to 2015, nor perpetual inventories of the parts, accessories and lubricants of the municipal garage. Nor did the Municipality maintain perpetual inventories of the cleaning and office materials.
Another deficiency detected is the lack of uniformity and good management of the Housing Rehabilitation Program, which grants donations of construction materials for the rehabilitation of housing to low-income persons. The program did not consecutively record the donation requests received and this type of situation can give the impression of favoritism. The Program, attached to the Office of Federal Programs and External Resources, granted 16 donations for $66,966 to 14 participants.
The Report notes that, as of December 31, 2016, Añasco had 13 lawsuits amounting to $8.7 million, pending resolution by the courts. In addition, for damages lawsuits the Municipality had paid $24,500.
The report covers the period from July 1, 2013 to June 30, 2017.
See Audit Report M-20-11.
To see other published reports, visit our Audit Reports section.
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