Improper payment of $344 thousand for a change in asphalt bid conditions in the Municipality of Moca
The Office of the Comptroller of Puerto Rico (OCPR) issued a qualified opinion of the fiscal operations of the Municipality of Moca. 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 improperly paid $344,240 for asphalt services to a corporation that after winning the bid requested to adjust the price set in the contract due to the increases in the costs of materials and services. In this regard, the mayor and the Municipal Legislature, contrary to the applicable law and regulations, authorized through Ordinance 1, adjusting the contract prices according to market fluctuations. This action, prohibited by the Municipal Regulation of 2016, was also contained in the documents that were delivered to the bidders, for which reason, once the offer was accepted, the municipal officials do not have the authority to make modifications in the absence of the other bidders.
The audit of five findings notes that the quotes in 76% of the disbursement vouchers examined, to acquire equipment, vehicles and supplies charged to the COVID-19 funds from 2020 to 2022, did not have information on the identity of the employee who had worked on the process. Of the quotes, 22% corresponded to the former mayor, and 78% to the current mayor. This situation encourages irregularities to be committed in the purchasing and disbursement processes.
The auditors detected that the Municipality improperly obtained the Approved Inspection Certificate and the sticker, for a bucket truck that was not in use due to mechanical defects. Upon the alert from the Office of the Comptroller's auditors, the director of Recreation and Sports returned the Certificate and the cost of the sticker. This situation was referred to the attention of the Department of Transportation and Public Works so that they take the corresponding action.
The Municipality does not have adequate control of the documents since, as of February 1, 2021, it did not have a documents administrator appointed by the Institute of Puerto Rican Culture (ICP). The appointment of the municipal secretary to the position on September 28, 2021, did not meet the requirements since she had not taken the required basic training nor did the mayor ensure that the ICP received this designation.
In addition, the Municipality of Moca sent to the OCPR the Annual Certification of Notification of Losses or Irregularities of 2021 up to 10 months later than what the law establishes. Also, the Certification of 2022, was sent five months late. This situation does not allow the information to be available at the OCPR in the time required to exercise its oversight function.
The General Fund budget was $10,197,060, $9,959,835, $9,324,539, $10,011,325 and $10,187,006, from 2020 to 2024, respectively. The financial statements reflected accumulated surpluses of $4,169,897, $4,469,287, $5,826,107 and $7,817,700, from the years 2020 to 2023 respectively.
The audit recommends that the director of the Office of Management and Budget ensure that the Municipality of Moca complies with the Corrective Action Plan of the OCPR.
This first report of Moca covers the period from January 1, 2020 to December 31, 2023.
The Audit Report OC-25-23 can be obtained on our website: www.ocpr.gov.pr.
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