The Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Manatí. A qualified opinion is issued when the individual or combined noncompliances are significant, but not pervasive.
The Report reveals that the Municipality did not obtain the construction permit for the improvements made at the Head Start centers La Fuente in Florida and Enrique Zorrilla in Manatí. The Municipality of Manatí receives and administers the funds, as a delegated agency of the Head Start and Early Head Start Program in Florida, Ciales, and Manatí. The improvements to these centers, along with the La Cumbre center in Ciales, totaled $336,636.
The assistant secretary of the Permits Management Office (OGPe) confirmed that certain work carried out at the centers required a construction permit. This situation, contrary to the law and regulations in force, did not allow the OGPe to exercise its oversight function and could have adverse consequences for the Municipality and the users of the project.
The two-finding audit notes that a Municipality employee who was not a licensed engineer performed multiple tasks that should have been entrusted to a licensed engineer, such as: structural evaluation, approval of purchase orders, and final inspections. The official, with a bachelor's degree in civil engineering, was not registered with the College of Engineers and Land Surveyors, nor did he hold a license from the Examining Board of Engineers and Land Surveyors. These situations were referred to said institutions so that they may take the measures they deem pertinent.
The Report comments on irregularities committed by the president of the corporation hired to carry out remodeling work at the Head Start center in Ciales. This person, who identified himself as a licensed engineer in several quotes, sworn statements, and a contract, had his membership as an engineer-in-training (EIT) suspended since 2001 and had not renewed his EIT license with the Examining Board, valid until November 1, 2004.
In addition, the Comptroller's auditors identified that the aforementioned corporation, which also had a contract with the Municipality of Barceloneta, reported in its employee payrolls that two carpenters and two workers had worked simultaneously on two projects, that is, 16 hours a day. This represented 536 hours per employee for a total of 2,680 hours for $26,864. The corporation also did not report the salaries of these employees to the Department of Labor and Human Resources in 2018.
This situation was referred to the Office of the Inspector General of the United States Department of Health and Human Services on March 12, 2020. The Report also recommends that the Secretary of Justice and the Secretary of Labor and Human Resources consider this situation in order to determine the actions to follow.
The Municipality invested $366,591 in projects that have not been useful because they are halted due to the fiscal situation of the Government Development Bank of Puerto Rico. The deputy mayor of Manatí indicated that the projects of the skate park at the Acrópolis Sports Complex and the remodeling of the Laguna Multiple Services Center remained halted at present and there were no plans to complete them.
As of March 25, 2021, the Municipality had eight civil lawsuits for $25,962,740 pending resolution by the courts. In addition, $125,086 had not been recovered for various concepts, as recommended in the Reports M-12-29 of 2011, M-15-10 of 2014, and M-18-15 of 2018, of the Office of the Comptroller of Puerto Rico.
This second and final report on Manatí covers the period from July 1, 2016 to September 30, 2019.
See the Audit Report M-21-42.
To see other published reports, visit our Audit Reports section.
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