The Office of the Comptroller of Puerto Rico issued a qualified opinion of the fiscal operations of the Municipality of Patillas. A qualified opinion is issued when the noncompliances, individually or in the aggregate, are significant but not pervasive.
The Report reveals that the Municipality overestimated its revenues from 2019 to 2021. This overestimation reached 65% of the 2021 annual budget, some $2,364,946. The overestimations bear a proportional relationship to the deficits accumulated from 2018 to 2021. In the 2021 budget, the accumulated deficit reached $3,787,884, 48% of the budget.
Operating at a deficit reduces the resources available for the following fiscal year, because its amount must be allotted in the next budget on a preferential basis. Similar situations were published in Audit Report M-20-03 of July 11, 2019.
The four-finding audit notes that the Municipality did not obtain the construction permit from the Permit Management Office (OGPe) for the roof improvement works at the Parque Urbano contracted in 2019 for $526,105. This situation, contrary to the 2010 Reglamento Conjunto, was referred on February 13, 2023 to the OGPe auxiliary secretary, so that she may take the administrative actions she deems appropriate.
In fact, for the construction of improvements to the athletics track for $303,470, the Municipality contracted a corporation whose president identified himself as a licensed engineer in the bid, in the auction documents, and on invoices, with his license expired since 2009 and his professional association membership suspended since 2010. These situations were referred to the consideration of the Secretary of Justice, and of the presidents of the Association and the Examining Board of Engineers and Land Surveyors on November 17, 2022.
The Comptroller's auditors identified an employee who, without having a collector appointment, collected $106,769 in 2019. This employee issued receipts without indicating purposes, and did not sign some final closing reports or collection receipts. Because of these deficiencies, irregularities with the Municipality's funds can be committed.
As of June 30, 2022, the Municipality of Patillas recorded 77 accounts receivable more than five years old, in the amount of $180,740. In addition, the Municipality had 10 accounts with incorrect figures for municipal business licenses receivable, for $43,285. These situations have the effect that the Municipality does not have these funds to meet its budgetary obligations.
The Report comments that seven civil lawsuits for $1,957,881 were pending resolution by the courts as of June 30, 2022. In addition, $128,654 had not been recovered for various purposes in the findings published in audit reports M-11-03 and M-11-04, both from 2010, and in M-14-01 from 2013.
The audit recommends to the Office of Management and Budget that it ensure that the Municipality complies with the Corrective Action Plan established by the Office of the Comptroller. This second and final report on Patillas covers the period from November 1, 2018 to June 30, 2022.
See Audit Report M-23-22.
To see other published reports, visit our Audit Reports section.
Some documents on this page are saved in PDF format.
To view these documents, you must have the following free program installed.
