The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Guaynabo. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that the then acting deputy mayor granted, on March 29, 2019, a Supplementary Agreement for $30,888 with retroactive effect, to cover the fees for an insurance policy in force from September 1 to November 30, 2018. This situation, contrary to the law, was referred to the consideration of the Secretary of Justice on February 5, 2021. A similar situation had been commented on in Audit Report M-17-42 of 2017.
The five-finding audit notes deficiencies in the process of awarding proposals for the maintenance and repair services of the vehicle fleet. Contrary to the law, the Request for Proposal Evaluation Committee requested a service proposal from the company that was already contracted by the Municipality and recommended its contracting.
This situation undermines the reliability of the service award processes and fosters favoritism. In addition, it increased costs from $17,082,600 (from 2008 to 2016) to $23,690,000.
The auditors found that two of the employees of the company that provided the maintenance services for the municipal vehicles were not authorized to practice that profession because they lacked the licenses. The Request for Proposal Evaluation Committee had not requested from the company's president evidence of the licenses issued by the Examining Board of Refrigeration and Air Conditioning Technicians for its refrigeration employees. In addition, the examination of disbursement vouchers did not include the certification of work performed, nor did the invoices describe the services rendered.
As of February 28, 2018, the Monthly Report of Revenues and Disbursements reflected seven special funds with economic resources of $370,240 that had remained inactive for up to three years. In addition, the fire of a municipal truck valued at $72,500 was not reported to the Office of the Comptroller, nor was an administrative investigation conducted.
The Report comments that the former mayor made guilty pleas for two violations of Act 54 and to two other lesser offenses. On February 18, 2022, the Court of First Instance accepted the parties' plea agreement and issued a sentence that imposed sanctions and penalties on the former mayor.
As of October 31, 2018, the Municipality had 551 employees in transitory positions, of which 93% had held such positions for periods of up to 27 years.
Another comment in the Report indicates that the Municipality disbursed $50,000 in 2018, for a lawsuit for reprisals, discrimination, and damages without receiving any benefit in return. This situation affected the resources to provide services to the citizens.
As of June 30, 2019, Guaynabo had 21 lawsuits pending resolution by the courts for $16,214,062. In addition, the Municipality had pending the recovery of $13,400 paid in excess to a provider, from a recommendation of Audit Report M-17-42 of 2017.
This first report on Guaynabo covers the period from January 1, 2015 to June 30, 2019.
See Audit Report M-22-34.
To see other published reports, visit our Audit Reports section.
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