Cantera Peninsula Company makes improper payments of more than $250 thousand
The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Company for the Integral Development of the Cantera Peninsula. 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 Company for the Integral Development of the Cantera Peninsula made improper payments of $257,252 because it did not comply with Act 73-2019 nor with Regulation 9230 of 2020, which provide that purchases must be made through the General Services Administration (ASG). In addition, the Company did not designate a liaison official between its Purchasing Office and the ASG for the purpose of processing purchases during the transition process that should have taken place between April 9 and May 20, 2021.
The Company for the Integral Development of the Cantera Peninsula also did not submit to the ASG, the day before the transition, a report on pending acquisitions, those originated, nor the matters pending before the Bidding Board, among others. For these instances of noncompliance, the ASG determined not to fine or penalize the Company, nor its officials.
The audit comments that, as of June 30, 2022, the Company had two lines of credit with the Government Development Bank (BGF) with outstanding balances of $58,380,290. Of this amount, $37,791,088 (64.7%) corresponds to principal and $20,598,202 (35.3%) to interest.
The financial statements of the Company for the Integral Development of the Cantera Peninsula indicate that no collections of principal and interest have occurred, nor settlement transactions. However, these loans are accounted for as non-accrual loans and will continue to accrue interest until they are transferred to the BGF's Debt Recovery Authority.
The resources of the Company for the Integral Development of the Cantera Peninsula come in equal parts from the state government, municipal government, and private enterprise. From 2021 to 2022, the Company generated $8,145,686 in revenue and spent $7,872,999 for a surplus of $272,687.
The Report recommends that the Financial Advisory Authority and Fiscal Agency of Puerto Rico evaluate the collectability of the lines of credit following the qualified modification of the BGF and the Commonwealth of Puerto Rico's Plan of Adjustment. In addition, it recommends that the Board of Directors instruct the executive directors and the directors of Administration and Finance about their personal responsibility for noncompliance with Act 73-2019.
This report covers the period from July 1, 2021 to June 30, 2022, and is available at www.ocpr.gov.pr.
Audit Report OC-24-53 is available on our website: www.ocpr.gov.pr.
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