Comptroller reveals three findings on the fiscal operations of the Capitol Superintendency
The Office of the Comptroller of Puerto Rico (OCPR) issued a qualified opinion on the fiscal operations of the State Capitol Superintendency of the Legislative Assembly of Puerto Rico. A qualified opinion is issued when the individual or combined instances of noncompliance are significant, but not pervasive.
The Report reveals that 38% of the construction contracts examined from 2017 to 2022 did not have payment bonds –payment bond– or performance bonds –performance bond-. The Superintendency's contract specialist also did not require public liability policies on 25% of the contracts. These documents are contracting requirements, to guarantee payment for labor and to respond for any damage to public and private property and to persons.
The three-finding audit notes that the Superintendency paid three contracts for $543,035, of the eight examined, that had subcontracted services from 2018 to 2019 without prior written authorization. The contractual clauses provide that the contracted party may not subcontract without the written authorization of the contracting party, in construction and permanent-improvement contracts.
The Superintendency's Office of Administration disbursed $15,000 to build a base for the installation of a statue that has had no use. As of June 2, 2023, the statue had not been acquired.
The auditors detected, in the examination of seven informal auctions, that the Informal Auctions Evaluation Committee awarded one without having a minimum of three written proposals. This situation prevented free competition among the largest number of suppliers.
As of February 13, 2023, the Superintendency had not established regulations on the request processes for the construction and permanent-improvement projects for which it assumes the cost and the recovery efforts. These projects refer to those not included in the annual budget request, for which the Superintendency assumes the cost and bills the Legislative Assembly entity that requested the project. The lack of regulation prevents adequate control and results in collection efforts not being carried out. For example, as of April 30, 2023, the Superintendency had 170 accounts receivable, totaling $4,337,827.
The audit comments that, as of June 5, 2023, five civil lawsuits for $465,000 were pending resolution in the courts.
The Report recommends that the presidents of the Senate and the House of Representatives of Puerto Rico take the necessary measures so that the Capitol superintendent complies with the recommendations and the published situations are not repeated.
From 2016-17 to 2022-23, the Superintendency received budgetary and special appropriations of $105,518,976 and $27,252,925 for permanent improvements, totaling $132,771,901. As of December 31, 2022, the Superintendency had disbursed $104,877,737, with a balance of $27,894,164.
This report covers the period from January 1, 2017 to December 31, 2022.
Audit Report OC-25-33 is available on our website: www.ocpr.gov.pr.
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