The Comptroller of Puerto Rico issued an adverse opinion on the operations related to the personnel administration of the Municipality of Yauco. The tests performed and the evidence revealed that these operations were not carried out in accordance with the applicable law and regulations.
The Report reveals multiple irregularities with the compensation of Municipality employees. For example, from the examination conducted of seven of the 35 irregular appointments made in 2014 and 2015, it was found that three maintained simultaneous work schedules with the Department of Education, the Municipality of Adjuntas and a private company. These employees earned $3,269 in improper salaries. The attendance sheets of these three employees were certified by the deputy mayor, the supervisor of child care, and an aide to the then mayor.
The one-finding audit also notes that the seven employees did not have specific tasks, were unaware of their schedules and none had worked in the Property Department. The Comptroller's auditors detected that one of the employees, also a municipal legislator of Ciales, was only seen on two or three occasions and on paydays. In addition, another employee from Juana Díaz had never been seen at the Municipality, but had his attendance sheets signed by the deputy mayor and an aide to the mayor.
Several Human Resources officials declared that on occasion they prepared payrolls through a process different from the regular one, on instructions from the mayor's aide. In addition, they admitted that they made adjustments to the preliminary payroll of some for not having evidence of their attendance; however, in the final payroll they collected all the hours.
The Comptroller's auditors examined the attendance cards of two employees on two different dates and detected that the cards were not the same. Those delivered on the second date reflected conflicting schedules, more days and hours of work, and punches on the attendance machine. In addition, the attendance cards that would justify the $38,111 in payroll were not found for examination, nor were the appointments of four employees to whom payments of $5,533 were made.
These situations, referred to the Federal Bureau of Investigation (FBI) on October 15, 2018, are attributed to the fact that the mayor's aide, the deputy mayor, the supervisor of Child Care and the seven employees engaged in illegal practices with the intention of defrauding the treasury.
The audit comments on other judicial proceedings against the former mayor that are significant to the operation of the Municipality of Yauco. The former mayor was found guilty on March 22, 2020 of fraud against the Government of the United States. In addition, on November 6, 2019, the federal prosecutor's office in Puerto Rico filed charges against the former mayor of Yauco, his former aide, the former director of Human Resources and five former employees for theft or fraud related to programs receiving federal funds.
The audit recommends that the secretary of Justice and the director of the Office of Government Ethics take the actions they consider, with respect to the Finding. In addition, it recommends that the director of the Office of Management and Budget ensure that Yauco complies with the Corrective Action Plan established by the Comptroller of Puerto Rico.
This third and last report of Yauco covers the period from January 1, 2013 to December 31, 2015.
See Audit Report M-20-28.
To see other published reports, visit our Audit Reports section.
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