The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Cidra. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals delays in the preparation of the monthly bank reconciliations of the Checking and Payroll accounts. As of May 12, 2021, the Municipality had not prepared the bank reconciliations from July 2019 to December 2020. The Municipality had 42 active bank accounts in two financial institutions as of December 31, 2020. This situation prevents maintaining updated, complete, and reliable information on the financial situation necessary for making administrative decisions.
The five-finding audit notes the absence of certification and detailed information in the invoices of the disbursements made to address the COVID-19 pandemic. The examination of a sample of the disbursement vouchers issued from April to September 2020, for $318,950, revealed that they did not contain a breakdown of work performed nor the names of the health professionals (physician, nurse, and emergency medical technician) who participated in the administration of tests. This situation prevented verifying whether the persons who provided the services had the required licenses.
Contrary to the law in force, and to the functions and duties of the internal auditor, the Internal Audit Unit had not carried out audits or monitoring of the various work units of the Municipality as of December 31, 2020. The absence of oversight of the municipal operations and of the public funds deprives management of the necessary information on the effectiveness and efficiency in the use of resources and the internal controls in operations.
The Report publishes that the acting persons in charge of the property did not carry out the annual physical inventories of the movable property from 2016 to 2020. The municipal officials also did not provide the inventory of the movable property that the persons in charge of the property who ceased their duties on August 1, 2018 and on August 31, 2019 should have prepared. These situations, contrary to the regulations in force, prevent maintaining adequate control and foster the improper use and loss of property.
As of May 6, 2021, the Municipality had not updated the Bidding Regulation to include the provisions established in Act 107-2020, Municipal Code of Puerto Rico and in the Regulation for Municipal Administration of 2016. This situation is attributed to the fact that the mayor did not ensure that the regulations were adjusted in accordance with the legislation in force.
The Report comments that, as of December 31, 2020, eight civil lawsuits were pending resolution in the courts for $1,200,536. In addition, nine cases filed by employees before the Public Service Appeals Commission and one complaint in the Telecommunications Bureau were pending resolution.
The auditors identified that $100,339 had not been recovered for various items noted in audit reports M-14-59 of June 24, 2014 and M-16-39 of June 8, 2016.
The report on Cidra covers the period from July 1, 2018 to December 31, 2020.
See Audit Report M-22-26.
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