The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Vega Alta. A qualified opinion is issued when noncompliances, individually or together, are significant but not pervasive.
The Report reveals multiple deficiencies due to the transfer of municipal property in 2018 to a merchant, for 15 months, without the prior authorization of the Municipal Legislature. The mayor requested the Legislature in 2019 to approve signing a collaborative agreement in exchange for the merchant providing maintenance services to the equipment of the Maritime Unit of the Municipal Police. However, that Unit had been disbanded in 2013 and the Municipal Legislature did not recommend the project since it did not satisfy the reasonableness criteria regarding legality.
The seven-finding audit notes that the Municipality exempted taxpayers from the payment of municipal license taxes and construction excise taxes for $87,725, without the approval of the Municipal Legislature. This situation caused benefits to be granted contrary to the Law. In addition, without the approval of the Municipal Legislature, the Municipality rented an apartment of its property for 11 months.
The Report indicates that the interim official collector performed conflicting tasks of collection, deposit, and adjustments in the taxpayers' accounts. In addition, as of February 6, 2019, Vega Alta maintained 62 taxpayer accounts that were more than five years overdue for $162,055.
The auditors found a lack of control in the tool and equipment warehouses, since daily dispatches and returns were not recorded. In addition, two ambulances remained, one for eight and the other for 27 months, in private repair shops, leading to their deterioration and contrary to the Vehicle Regulation of 2016.
As of March 29, 2019, the Municipality had not updated the Personnel Regulation of the Municipal Government of Vega Alta as provided by Act 81-1991 on Autonomous Municipalities. This situation does not allow maintaining an adequate system for personnel administration, for example, in the use of leaves for victims of domestic violence, paternity, adoption, and others.
Contrary to the regulations in force, the position of public documents administrator had been vacant since 2016, and the administrator appointed in 2019 did not have the necessary authorized training to perform his functions. This situation leads to the loss, deterioration, or destruction of documents, and prevents maintaining adequate control.
The audit comments that the project for the construction and rehabilitation of the Domingo Navarro Gymnasium was halted because the Government Development Bank stopped sending the assigned funds following the declaration of the state of emergency in 2016. As of April 29, 2019, the contractor had invoiced $137,158 and the Municipality does not have funds to continue the project. (see photos in Appendix 1 of the Report)
As of March 19, 2019, the Municipality had 73 employees classified as temporary for more than 18 years, contrary to applicable law. A similar situation had been commented on in Audit Report M-18-01 of 2017.
The Municipality did not conduct internal investigations to identify the causes of unauthorized debits of $23,758 from the Checking Account in 2016. Nor did it notify the Office of the Comptroller of Puerto Rico of those personal purchase and electronic equipment transactions, nor did it file a complaint with the Police. The Municipality did claim against the Bank, which reimbursed those amounts to the Account.
Despite the theft of a tractor by a municipal employee, the Municipality did not apply disciplinary measures. The employee alleged that he had taken it because he needed a part to repair equipment of his property. The tractor was returned dismantled and missing several parts. The theft was reported to the Puerto Rico Police Bureau, but the case was dismissed, since the agent did not appear at the third hearing scheduled by the Court. (See Appendix 2 of the Report)
As of August 29, 2019, the Municipality had not addressed the recommendation for the recovery of $21,750 published in Audit Report M-18-01 of 2017.
The Report recommends to the executive director of the Office of Management and Budget to ensure that the Municipality of Vega Alta complies with the Corrective Action Plan established by the Office of the Comptroller of Puerto Rico.
This first report on Vega Alta covers the period from January 1, 2016 to December 31, 2018.
See Audit Report M-21-14.
To see other published reports, visit our Audit Reports section.
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