The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Corporation of the Musical Arts. A qualified opinion is issued when the instances of non-compliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that, as of February 26, 2021, the Corporation of the Musical Arts did not have regulations for the Educational Program Conoce tu Orquesta (PEDCO). The regulations for this program must establish, for example, the cost of the talks per student, the functions of the coordinator, and the payment process, among others.
In addition, the Corporation had not established a procedure to regulate the receipt books, nor does the Accounting Manual contain provisions in this regard. In fact, the Manual had not been updated since its approval in 1996.
The six-finding audit notes that the Corporation did not maintain adequate control over the clauses that must be included in the contracts and the required certifications of the Integrated Services to the Community program (SIC) and PEDCO. For example, none of the four contracts examined contained the clause certifying that the contractor obtained the necessary waivers, and in the files the certification of the State Insurance Fund policy was not found in two contracts, nor was the negative certification of sex offenders issued by the Department of Justice in one of the contracts. From 2015 to 2019, the Corporation had formalized 138 contracts and 21 amendments totaling $461,001
The Office of the Comptroller's auditors identified invoices that were not canceled after payments were issued, supporting documents not signed by the person in charge of the re-intervention, or the absence of a record of authorized signatures or payment requisitions. These deficiencies make it possible for funds to be disbursed for services not rendered or for administrative errors to be committed.
The Report discloses that the Corporation has not had a property custodian since February 2017. This situation makes it impossible to maintain control of the property and increases the risk of loss or improper use.
The Corporation submitted to the Office of the Comptroller a copy of contracts and amendments up to five weeks late, contrary to the applicable law that establishes that they must be submitted within the following 15 days from their formalization. The Corporation also sent late the Annual Certification of the Contract Registry for 2018 and 2019, and the Certification of Losses for 2019. The Report recommends that the officials comply with the submission dates established in Regulation 33.
This Report of the Corporation of the Musical Arts covers the period from July 1, 2016, to June 30, 2020.z
Audit Report OC-24-06 can be obtained on our website: www.ocpr.gov.pr.
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