The Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the municipality of Carolina. A qualified opinion is issued when the noncompliance items, individually or together, are significant, but not pervasive.
The Report reveals that the Municipality executed nine contracts for $650,886 with a corporation not authorized to provide the services of refrigeration and air conditioning technicians. A corporation that provides refrigeration services must be created as a professional corporation, have all of its shareholders licensed, be dedicated to the service indicated in the certificate of incorporation, and offer its services with licensed employees, as established by Act 164-2009, the General Corporations Act. The Report recommends that the secretary of Justice consider this situation in order to determine the corresponding administrative or judicial actions.
The one-finding audit notes that the Municipality's officials did not verify that the president of the contracted corporation and one of its technicians had an expired license at the time the contracts were executed. The College of Refrigeration and Air Conditioning Technicians of Puerto Rico (CTRAPR) also certified that another of the corporation's technicians indicated a nonexistent license number. These technicians certified in the repair document that they had current licenses and association membership.
Contrary to the auction and contract specifications, the Municipality overpaid $39,875, since the established deductions were not made and the Municipality paid for work that was the corporation's responsibility. In addition, in 64% of the total billing, the corporation did not prepare, nor did the Municipality require, the certification of work performed on the form provided by the CTRAPR.
The Report comments that the Municipality's Internal Audit and Ethics Office investigated a possible misappropriation of $1,900 from the emergency fund in the charge of an employee who worked as paying officer. This situation was investigated and the Municipality applied the corresponding disciplinary measures.
Contrary to the laws in effect, the Municipality has 174 employees with temporary appointments, for up to more than 11 years. Temporary appointments cannot exceed one year, except for exceptions. A similar situation had been noted in Audit Report M-17-32.
As of June 6, 2019, 41 civil lawsuits filed against the Municipality for a total of $32.6 million were pending resolution by the courts.
The Report covers the period from July 1, 2015 to December 31, 2018.
See Audit Report M-20-30.
To see other published reports, visit our Audit Reports section.
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