Office of the Comptroller reveals deficiencies in the appointment of an official in Lares without the minimum requirements
The Office of the Comptroller of Puerto Rico (OCPR) issued a qualified opinion on the fiscal operations of the Municipality of Lares. A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The Report reveals that on January 11, 2021, the mayor of the Municipality of Lares appointed a municipal police officer with a high school diploma as commissioner of the Municipal Police without meeting the requirements to hold the position. The Municipal Legislature confirmed the appointment even though the applicable regulations require a bachelor's degree and the completion of training for officers at the police or military academy, among others. In addition, the mayor designated an employee on assignment as interim director of Transportation and Maintenance; a position that he held 238 days in excess of what is permitted by law. Because of these situations, the decisions made by these officials could be questioned.
The three-finding audit notes that, of the sample examined, 76% of the invoices paid for engineering, legal, and labor administrative services did not include a detailed and specific breakdown of the work performed by the contractors. To this effect, the auditors could not verify in all its details the legality and propriety of the disbursements. In addition, three invoices that did not include the certification of absence of interest on the part of Municipality officials in the profits or benefits of the contracted products or services were authorized for payment.
In contravention of the Civil Lawsuits Registry Act of 2003, the Municipality did not submit to the Secretary of Justice the information and documents required for four resolved and three active lawsuits in the courts from 2019 to 2023, with claims totaling $3,498,025. This act provides that every civil claim whose amount exceeds $5,000, or constitutes an injunction or mandamus proceeding, must be accessible to the public in this registry.
The Report comments that the then-mayor contracted a regular corporation to provide legal services through two contracts for $33,000, and the current mayor also contracted a regular corporation to provide engineering services through six contracts and two amendments for $74,400. In both cases, services were paid to corporations barred from providing these services. The current legal system provides that these services must be offered by professional corporations or limited liability companies. The Secretary of Justice, and the presidents of the Association and Examining Board of Engineers and Surveyors of Puerto Rico, are recommended to evaluate this situation so that they take the measures they deem pertinent.
As of October 12, 2023, three civil lawsuits for $1,346,000 were pending resolution by the courts. Before the Public Service Appeals Commission, a case filed for dismissal was also pending resolution.
The Municipality's General Fund budget, for fiscal years 2019 through 2023, was $11,685,722, $11,519,214, $9,946,031, $9,113,303, and $9,011,916, respectively. The financial statements, audited by certified public accountants, reflected accumulated deficits of $1,315,648 and $820,864 for 2019 and 2020, and accumulated surpluses of $1,750,930 and $5,234,883 for 2021 and 2022.
The audit also recommends to the director of the Office of Management and Budget that he ensure that the Municipality of Lares complies with the Corrective Action Plan of the OCPR.
This second and last report of Lares covers the period from January 1, 2019, to June 30, 2023.
The Audit Report OC-25-07 can be obtained on our website: www.ocpr.gov.pr.
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