The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Canóvanas. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The single-finding Report reveals that the Municipality formalized a contract and five amendments for $1,795,773 with a for-profit corporation for the administration of the Diagnostic and Treatment Center, which was not submitted to the evaluation and approval of the Municipal Legislature. Although the contract, in effect from 2017 to 2019, was identified as one for professional services, its activities corresponded to the administration of facilities that provide public services.
Act 81-1991, Autonomous Municipalities Act of Puerto Rico, provides that this type of contracting requires the prior approval of the Municipal Legislature. Act 107-2020, Municipal Code of Puerto Rico, approved after the finding and which repealed Act 81, maintains this requirement. This first report on Canóvanas covers the period from July 1, 2017 to September 30, 2019.
See Audit Report M-23-08.
To view other published reports, visit our Audit Reports section.
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