The Office of the Comptroller of Puerto Rico issued a qualified opinion of Trujillo Alto's fiscal operations. A qualified opinion is issued when individual or combined noncompliance is significant, but not pervasive.
The Report reveals that the Municipality granted free use of the Rubén Zayas Montañez Coliseum and its concession stands to a corporation organizing boxing events, from August 2018 to September 2019. During this period, 11 boxing cards were presented without a contract exempting the corporate entity from paying the lease rent of $43,501.
On October 25, 2019 a sponsorship contract was formalized with said entity in exchange for 150 entrance tickets; however, the Municipality did not have a regulation to grant sponsorships to for-profit entities. In fact, no evidence was found for examination of the control in the distribution of the entrance tickets of one of the cards.
These situations, contrary to current laws, regulations and case law, may be harmful to the Municipality, allow funds not to be used effectively and efficiently, and uniform rules not to be applied with respect to sponsorships.
The three-finding audit points out that the mayor appointed a public records administrator who did not meet the training requirements to hold the position. In addition, the Municipality had not prepared the public records disposition lists since 2013. This situation may lead to the loss of important documents.
The Comptroller's auditors were unable to examine the Municipality's response to the questions from bidders of a pre-bid related to the sale or lease of real estate. The secretary of the Bidding Board indicated that she did not find the documents or evidence of their submission. This fact reduces the reliability of the bid award processes and may lead to favoritism.
The Report comments that Trujillo Alto's budget deficit amounted to $5,098,267 in 2017, $3,944,160 in 2018 and $2,213,749 in 2019. Operating with a deficit in a given fiscal year reduces the resources available for the following year. A similar situation had been commented on in Audit Report M-18-10 of December 30, 2017.
The Municipality disbursed $22,500 in 2019, as part of an agreement with an employee before the Public Service Appeals Commission for retaliation, damages. In addition, it paid $206,692 for five lawsuits resolved in the courts for collection of money, damages.
As of December 31, 2019, eight civil lawsuits were pending resolution by the courts for $911,250.
The Trujillo Alto report covers the period from April 1, 2017 to December 31, 2019.
See Audit Report M-22-12.
To see other published reports, visit our Audit Reports section.
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