The Office of the Comptroller of Puerto Rico (OCPR) issued a qualified opinion on the fiscal operations of the Department of Transportation and Public Works (DTOP). A qualified opinion is issued when the noncompliance, individually or in the aggregate, is significant but not pervasive.
The Report reveals that DTOP disbursed $28,966 to a contractor who billed more than agreed in the contract for security services. Instead of paying $10.33 and $11.33 per hour of service, the invoices presented on December 31, 2021 indicated $11.91 and $12.91 per hour respectively. In addition, the contract granted did not include the maximum amount to be paid and did not identify the budgetary item from which the disbursement would be made.
In the six contracts and six amendments examined in this finding, multiple deficiencies were also identified in the pre-intervention of the invoices. For example, 26% of the invoices did not include the name and signature of the officials, 13% did not indicate the position title of the official, and 10% did not record the contract number. These deficiencies make it easier for errors to be committed in the processing of payments.
The seven-finding audit points out that DTOP granted a contract for $253,400 for the digitization of documents and production of placards for persons with disabilities without the Certification of Justification, which DTOP requested via exception from the Office of Management and Budget. In addition, for the printing services of driver's licenses, it did not carry out a bidding process, but rather granted a contract for $1,440,000 directly with the supplier. This situation prevents free competition among the largest number of suppliers and can encourage favoritism.
The Comptroller's auditors identified that the Transportation Advisory Board created by Act 16 of 1980 has not met since 2018. The Board, which must meet at least four times a year and render reports to the Governor and the Legislative Assembly, also does not have regulations to govern its operation.
The Report publishes that contracts granted for $39,792,004 and amendments for $111,286,982, from January 8, 2018 to September 16, 2021, were registered with the OCPR up to 18 months later. A copy of the contracts and their amendments must be submitted within 15 days from their granting, since no benefit or consideration can be demanded until it has been registered with the Office of the Comptroller of Puerto Rico.
In the inspections carried out in the regional offices of Aguadilla, Arecibo, Guayama, Humacao, and San Juan, unserviceable property was found in warehouses or abandoned structures out in the open located among trash, vehicles covered with vegetation, and obsolete materials. Similar situations had been noted in the property inventory reports of a private company between 2019 and 2022. The lack of control over the property prevents the correct disposal of surplus property and increases the risk of harm to the environment and public health.
As of August 8, 2023, DTOP did not have a public documents administrator. It is the obligation of governmental entities to designate a public documents administrator who will be responsible for complying with the rules of the Public Documents Administration Program attached to the Institute of Puerto Rican Culture.
The budget from 2018 to 2024 totals $1,825,684,506; however, as of September 30, 2023, disbursements of $1,500,215,646 have been recorded.
This first report covers the period from January 1, 2018 to September 30, 2023
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Audit Report OC-25-38 can be obtained on our website: www.ocpr.gov.pr.
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