Comptroller reveals payments for debris removal without contracts in Aguadilla
The Office of the Comptroller of Puerto Rico issued a qualified opinion of the fiscal operations of the Municipality of Aguadilla. 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 Municipality disbursed $194,158 for heavy equipment rental services to four contractors without a written contract or amendment to the contracts in force. The rental of heavy equipment such as excavators, trailers or cargo trucks was not included in the contracts then in force formalized between 2017 and 2018, for the collection and disposal of debris, after the passage of Hurricane Maria. In addition, the absence of a written contract caused the Office of Recovery, Reconstruction, and Resilience (COR3) not to reimburse the Municipality $108,802.
The audit of two findings notes that payments for $23,058 were made with a debit card, without quotes, purchase orders, or disbursement vouchers. These expenses are related to the purchase of airline tickets for seven trips outside of Puerto Rico, lodging, and vehicle rental for the mayor and nine officials from 2021 to 2022. The certifications of public interest or the benefits obtained from the trips were also not found.
The Report comments that the Municipality formalized in 2018 a contract for air conditioner installation and removal services for $177,650, to a corporation whose representative submitted falsified refrigeration and air conditioning technician licenses. In addition, the representative of the corporation, who had been convicted of aggravated illegal appropriation crimes in 2013, swore that he had no crimes that would disqualify him from contracting with the Municipality
This situation investigated by the Office of the Comptroller was referred to the attention of the Inspector General of the United States Department of Health and Human Services in 2022. In this regard, the United States Department of Justice determined the payment of $355,304 for damages and restitution of federal funds.
The Municipality's General Fund budget was $21,965,931, $14,554,839, $18,632,446 and $21,622,871, from 2018 to 2021. The Municipality had prepared its financial statements, which reflected accumulated surpluses of $4,578,121, $6,742,003, $8,153,499, and $8,929,872, from 2018 to 2021.
The audit recommends that the director of the Office of Management and Budget ensure that the Municipality of Aguadilla complies with the Corrective Action Plan of the Office of the Comptroller of Puerto Rico.
This second and final report of Aguadilla covers the period from July 1, 2017 to December 31, 2021.
The Audit Report OC-25-21 can be obtained on our website: www.ocpr.gov.pr.
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