The Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Lajas. A qualified opinion is issued when noncompliance, individually or in the aggregate, is significant but not pervasive.
The Report reveals that the Municipality allowed, contrary to current law and regulations, employees to accumulate compensatory time in excess of the 240 hours established for public employees and 480 hours for security or emergency employees.
In 2018 the Municipality paid $16,798 to four employees instead of allowing them to take the compensatory time before the effective date of their resignations. In addition, the Comptroller's auditors identified employees with accumulated time of up to 815 hours, incorrect balances, and compensatory time records without the authorizations. Similar situations had been noted in audit reports M-14-40 of 2014 and M-10-55 of 2010.
The four-finding audit notes the absence of procedures and internal controls regulating the collections of the workshops and training program of the Municipality's Department of Art, Culture, and Tourism. In the program, collections of $29,379 were made without issuing electronic or manual collection receipts recorded in the Ingresys collections module of the accounting system. In addition, neither deposits were made nor daily reports of what was collected were issued. On November 10, 2020, the Municipality of Lajas approved the Regulation on Standards and procedures for the workshops; however, said regulation does not establish provisions that address and correct the situations noted.
The administration of the Municipal Cemetery of Lajas did not receive the payment of excise taxes from an independent contractor hired to build graves, did not collect the 10% special contribution from two owners who sold their graves, and did not formalize written contracts with the persons who purchased lots. These situations do not allow for maintaining adequate control of operations and can lead to irregularities being committed.
The Report indicates that the Municipality notified the Office of the Comptroller of seven incidents of property loss for $118,747 up to 265 days after the regulatory date. This situation did not allow the Office to have the information available within the required time.
The audit notes that Lajas had in 2017 a 28% ($3,100,315) deficit of its total budget; in 2018, 32% ($2,959,655); and in 2019, 20% ($1,870,684). In the preparation and execution of a budget, one cannot spend or obligate in a fiscal year any amount that exceeds the appropriations and the funds obligated by ordinance or resolution.
The Municipality had 80% of its 127 employees appointed as transitory for up to 20 years, in excess of the term of law. At times municipalities are forced to appoint transitory employees, but these should not exceed 12 months.
This first report on Lajas covers the period from July 1, 2017 to December 31, 2019.
See Audit Report M-21-46.
To see other published reports, visit our Audit Reports section.
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