The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Youth Corporation for the Development of Sustainable Communities (Corporation) of the Municipality of Caguas. A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The one-finding Report reveals that the Corporation paid $99,976 to the executive director for services rendered from July 1, 2016, to July 7, 2018, without a contract. On July 8, 2018, the vice president of the Board formalized two employment contracts with the executive director, retroactive to July 1, 2016.
During this period, the executive director formalized 14 professional and non-professional service contracts for $179,943. These contracts were formalized with retroactive effect for services that had already been rendered.
These situations, contrary to the jurisprudence related to government contracting in force, prevent adequate control of the work and foster irregularities in the disbursements. In addition, it could have been detrimental to the Corporation to lack legal documents on the obligations of the parties.
The audit recommends to the president of the Board of Directors of the Corporation to ensure that written contracts are formalized before the rendering of services and to evaluate the recovery of $127,679 disbursed for the contracts not signed on time. In addition, it recommends to the director of the Office of Management and Budget to ensure that the Municipality complies with the Corrective Action Plan.
This report covers the period from July 1, 2016, to February 28, 2020.
See Audit Report M-23-01.
To see other published reports, visit our section of Audit Reports.
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