The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Orocovis. A qualified opinion is issued when noncompliances, individually or together, are significant but not pervasive.
The Report reveals that the Municipality did not formalize 45 contracts with 30 suppliers awarded in a general bid for goods and services for fiscal year 2017-18. As of June 10, 2019, Orocovis had paid $1,830,866 to those suppliers.
This situation, contrary to the opinion of the Supreme Court of Puerto Rico and to the regulations in force, may be detrimental to the Municipality, and does not protect its best interests in case of noncompliance by the suppliers. In addition, the written contract is the best evidence of the reciprocal obligations contracted by the parties.
The one-finding audit comments that, as of December 31, 2018, two civil lawsuits for damages and unjustified dismissal were pending resolution by the courts, amounting to $300,000.
The Report recommends to the director of the Office of Management and Budget to 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 Orocovis covers the period from January 1, 2015 to December 31, 2018.
See Audit Report M-21-15.
To see other published reports, visit our Audit Reports section.
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