The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Camuy. 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 the Municipality paid $726,003 in excess of the contracted amount in the purchase of asphalt. The contract, formalized on July 13, 2021, was not amended prior to its expiration to increase the amount.
Although one of the clauses of the contract established that the amounts could increase or decrease, neither the Municipality nor the contractor amended the agreement to establish the new amount in writing and prospectively in order to comply with the requirements of government contracting. In addition, the then pre-intervention officials indicated that they did not have the contract to validate the payments of the invoices.
The four-finding audit notes that the Municipality invested $2,083,240 in the construction of the Sports Complex, which is in a state of abandonment (see photos in Annex 1 of the Report).
From 2008 to 2022, 18 contracts and 32 amendments were formalized for the sum of $2,470,375 with eight contractors. However, the Municipality did not take into account the recommendation of the engineers' preliminary study in 2008 to carry out a geological study and a final geotechnical exploration of the land, since deposits of sandy clay and sinkholes covered with garbage and debris were found.
The amount of $1,036,353 of the disbursements of this project was made during the administration of the former mayor, and $1,046,887 by the mayor. This situation may bring about an additional multimillion-dollar investment to complete the project.
The auditors found that, contrary to the law and regulations, four donations totaling $7,250 were granted to two nonprofit entities whose certificates of incorporation had been revoked by the Secretary of State, and a donation of $5,000 to a sports entity that was not registered with the Department of State. In addition, the acting director of Finance and Budget did not request the Good Standing, nor the expense reports on the use given to the money granted to several nonprofit organizations.
The Report shows that from 2019 to 2020 physical inventories of the property were not carried out in 47 of the 55 areas comprising the municipal units. From 2021 to 2022, physical inventories of the property were not carried out in 13 of the 55 areas. These situations have the effect that the financial information does not reflect the assets and values available for the operation of the Municipality. In addition, adequate control of the property is not maintained.
The audit comments that, as of November 15, 2023, two civil lawsuits totaling $975,000 were pending resolution by the courts.
The General Fund budget of the Municipality, in fiscal years 2019 to 2022, was $11,449,128, $11,976,692, $11,806,107, and $12,248,555, respectively. The financial statements audited by certified public accountants reflected accumulated surpluses of $160,592, $211,746, and $200,776, for fiscal years 2019 to 2021.
The Report recommends to the director of the Office of Management and Budget to ensure that the Municipality complies with the Corrective Action Plan of the Office of the Comptroller of Puerto Rico.
This report of the Municipality of Camuy covers the period from May 1, 2019, to December 31, 2022.
Audit Report OC-24-38 can be obtained on our website: www.ocpr.gov.pr.
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