Press Releases

Report from the Office of the Comptroller of Puerto Rico reveals administrative deficiencies and inoperative vehicles in the Municipality of Ceiba

The Office of the Comptroller of Puerto Rico issued a qualified opinion of the fiscal operations of the Municipality of Ceiba. 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 paid $38 thousand for heavy equipment rental services not included in a contract formalized on March 8, 2018, for the collection of vegetative material and debris from Hurricanes Irma and María. In addition, the auditors identified disbursement vouchers for $1.1 million, issued from 2017 to 2020, without approved invoices, without the details of the services paid, and/or without the required signatures of the mayor, the finance director, and the pre-intervenor. These situations render the internal administrative control inoperative and foster the commission of errors.

The three-finding audit notes that the Municipality did not comply with the requirements to receive a reimbursement of $766 thousand in funds from the Federal Emergency Management Agency – FEMA. This deficiency is due to the fact that the Municipality did not present the required documents, made payments in excess of the approved rates, or paid expenses not eligible for reimbursement.

The Office of the Comptroller's auditors found that the Municipality acquired equipment through auction for $716 thousand in Texas and Florida in 2018 and 2019, that have had little or no use. In the Public Works shop, among others, a golf cart with mechanical defects and portable toilets without sanitary connection, among others, were observed. In addition, the Municipality had to pay $1,805 in late charges for not picking up the vehicles on time at the Crowley port in San Juan, and made duplicate payments of $755 for the transportation of vehicles and equipment.

The examination of the use of the official credit card of the then mayor, including the trips indicated, reflected expenses of $16,008, with payment supporting documents lacking the purchase receipts and the providers' invoices. In addition, a duplicate payment was made for a stay at a hotel in Texas.

In violation of the Municipal Code of 2020, the Municipality acquired two tractors and a sargassum-cleaning machine for $79 thousand, without obtaining three quotes from providers representative of the market. In addition, it purchased a forklift for $10 thousand, without the quotes from three local providers and three providers from outside Puerto Rico. This situation impedes free competition and fosters the commission of irregularities.

The Report publishes that the disbursement of liquidations of the vacation and sick leave of the then mayor was not carried out in accordance with the applicable law and regulations. The then mayor was not deducted $8,747 from the pending balance of a debt he had with the Department of the Treasury. In addition, the payment of the liquidation of the former mayor had a debt notification that was not updated, of 513 calendar days before the effective date of the official's resignation on December 17, 2020.

The General Fund budget of the Municipality rose from $7.4 million in 2019, to $7.6 million in 2020, $8.1 million in 2021, and to $8.6 million in 2022. The audited financial statements reflected accumulated deficits of $3 million, $517 thousand, $823 thousand, and $663 thousand, from 2019 to 2022, respectively.

The audit recommends that the director of the Office of Management and Budget ensure that the Municipality of Ceiba complies with the Corrective Action Plan of the Office of the Comptroller of Puerto Rico.

Annex 1 of the Report contains photos of the equipment that is not functioning. This second and final report on Ceiba covers the period from January 1, 2019 to June 30, 2022, and is available at www.ocpr.gov.pr..

Audit Report OC-25-48 can be obtained on our website: www.ocpr.gov.pr.