The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Dorado. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that an engineer's aide contracted by the Municipality since 2014 performed the duties of a licensed engineer in supervising the execution of construction works and improvements, and approved payments to contractors, without holding the engineer's license from the Examining Board or being registered with the College of Engineers and Surveyors of Puerto Rico. From July 1, 2017 to March 31, 2021, the Municipality had formalized 101 construction and improvement contracts for $4,832,817. From the examination performed, 83% of the contracts included a clause establishing that the Municipality would designate a representative as inspecting engineer to supervise and approve the payments. This situation, contrary to the contractual clauses, prevented a licensed engineer from performing the work, which could have adverse consequences for the users of the structures.
The two-finding audit points out that two construction contracts for $164,777 were granted to remodel a roundabout and waterproof the roof of the amphitheater, without the required bonds. In addition, the Municipality did not require the contractors to provide bonds or liability policies at the time of formalizing the contracts for the reconstruction of the athletic track and the rehabilitation of housing, for $870,923. As a result, the Municipality did not have the guarantee of compliance with the contract (performance bond), nor the guarantee to pay for labor, equipment, and materials (payment bond), in case of accident or noncompliance by the contractor.
Contrary to Act 81-1991 of Autonomous Municipalities of Puerto Rico and the Municipal Regulation, the Finance director did not obligate the budgetary appropriations in 33% of the contracts and amendments at the time they were granted. This situation does not allow effective control of the budgetary items for the payment of the contracts.
The Report recommends to the presidents of the Examining Board and of the College of Engineers and Surveyors of Puerto Rico to consider the published finding so that they may take the measures they deem pertinent. In addition, it recommends to the executive director of the Office of Management and Budget to ensure that the Municipality complies with the Corrective Action Plan established by the Office of the Comptroller. This second and last report on Dorado covers the period from July 1, 2017 to March 31, 2021.
See Audit Report M-23-05.
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