The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of San Lorenzo. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that the Municipality did not obtain the use permits granted by the Permit Management Office (OGPe) for the construction project of the Transportation System Maintenance Center and the mini terminal, totaling $1,021,280. This situation does not offer assurance that the projects were carried out in accordance with the applicable laws and regulations, and exposes the Municipality to the imposition of fines and penalties by OGPe.
The one-finding audit notes that the required bonds and policies –performance bond and payment bond– could not be located in some files for construction works and permanent improvements. This situation left the Municipality without guarantees in the event of breach or of any damage to property and persons.
Nor did the municipality provide the Substantial Complete Form for the improvement project of the Agustín Reyes athletic track, nor the final inspection report for the sidewalk and ramp reconstruction project.
Contrary to the applicable laws and regulations, the Municipality did not require, and the contractor did not pay, the construction excise taxes corresponding to the improvements of the athletic track. To that effect, the Municipality failed to receive income of $12,391 and, due to the time elapsed, these excise taxes may prove uncollectible.
The Report indicates that the acting Finance directors did not encumber the budgetary credits for the payment of one contract and four amendments totaling $679,609 prior to their execution. This situation prevents maintaining effective control of the budgetary line items. Similar situations had been commented on in Audit Report M-16-33 of May 24, 2016.
For the audited period, San Lorenzo executed a total of 53 contracts for $4,303,563 for the construction and repair of public roads and buildings.
The audit recommends that the executive director of the Office of Management and Budget ensure that the Municipality complies with the Corrective Action Plan established by the Office of the Comptroller of Puerto Rico.
This second and final report on San Lorenzo covers the period from January 1, 2015 to October 31, 2018.
See Audit Report M-21-06.
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