The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Medical Licensing and Disciplinary Board attached to the Department of Health. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that the Department of Health granted two emergency contracts retroactively on March 16 and October 30, 2020, in contravention of the applicable law and jurisprudence. The original contract of November 1, 2014 for the lease of building 1 had reached its term on October 31, 2019. For these emergency contracts related to the lease of the third floor of building 1, $666,778 was disbursed.
The Department of Health had leased, on September 1, 2019, floors 11, 12, and the Penthouse of another building, for the space needs of the Medical Licensing and Disciplinary Board. However, given the situation that the landlord of building 2 had not completed the improvements agreed by contract, the Department granted the two emergency contracts to remain in building 1.
The Supreme Court established that “faithful compliance with the formal requirements in government contracting […] applies even when a state of emergency exists.” The Department knew that the improvements agreed in building 2 had not been made nor would they be completed before the expiration of the contract with building 1.
The two-finding audit also notes that the Board did not request the delivery of building 2 with the agreed improvements, nor did it occupy the building; however, $451,413 was disbursed for the lease. The paymaster who prepared the Board's payment vouchers did not obtain, prior to the disbursement, the certification of the agreed improvements.
In addition, the emergency contracts were not registered, nor submitted to the Office of the Comptroller as provided by the law and regulations in force. This situation prevented them from being available to the public as public documents.
The audit indicates that the Department invested $454,829 in materials and equipment that have had no use. The auditors found 310 computers, 154 backup batteries, and security-system installation materials stored and unused, in a warehouse of building 1, during a visit made on November 9, 2021 (see photo in the Report).
The Report recommends that the Secretary of Health request the Secretary of Justice to evaluate the situations in the findings, to recover the monies paid improperly to the landlords of buildings 1 and 2.
The Board's budget is included as part of the budget allocated to the Office of Regulation. During fiscal years 2020 through 2022, the Board had a budget of $1,968,000, $2,495,000, and $3,559,157 respectively. From June 1, 2019 to February 28, 2022, the Board had revenue from the issuance of licenses, renewals, and certifications of $10,679,781 and incurred expenses of $4,206,471 for a balance of $6,473,310.
This second report OC-24-48 of the Medical Licensing and Disciplinary Board covers the period from June 1, 2019 to February 28, 2022, and is available at www.ocpr.gov.pr.
Audit Report OC-24-48 is available on our website: www.ocpr.gov.pr.
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