The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Morovis. A qualified opinion is issued when noncompliances, individually or together, are significant but not pervasive.
The Report reveals that the Municipality formalized eight contracts for $221,566 with four regular corporations, for the maintenance of air conditioners and electricity services. However, it did not ensure that Corporation A, whose owner indicated that it had no employees, complied with what was stipulated in the contract, of not subcontracting the services. The two-finding audit notes that unauthorized persons rendered refrigeration services in Morovis. The officials of corporations A and B did not have a license from the Examining Board; nor did the subcontracted person who performed the maintenance for Corporation A, nor the employee of Corporation B, have the required license. The supervisors of both corporations did have their licenses, but they were expired and had not been renewed.
This situation could be detrimental since there is no certainty that the services were rendered in accordance with the laws and certifications. The Office of the Comptroller of Puerto Rico referred these situations to the Department of Justice, to the College of Refrigeration and Air Conditioning Technicians of Puerto Rico, to the president of the Examining Board of Refrigeration and Air Conditioning Technicians of Puerto Rico, and to the president of the Environmental Quality Board, for the corresponding actions. Contrary to Act 81-1991 on Autonomous Municipalities, the then director of Finance authorized the payment of $7,158 to corporation A, for debts incurred in the previous fiscal year. Nor did the Municipality obligate the budgetary appropriations for the payment of seven contracts for $212,962 until a year later.
The Report comments that the Municipality settled for $30,000 a lawsuit that an employee filed in 2015 for political discrimination and dismissal without just cause. The employee was reinstated in her job in 2018.
As of December 31, 2018, a civil lawsuit for $3,700,000 for breach of contract and debt collection was pending resolution by the Court. In addition, 79 cases were pending resolution before the Public Service Appellate Commission for reduction of the workday and salary adjustment.
The Morovis report covers the period from July 1, 2015 to December 31, 2018.
See Audit Report M-21-08.
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