Office of the Comptroller reveals that the Vocational Rehabilitation Administration did not withhold the special 1.5% contribution from contractors
The Office of the Comptroller of Puerto Rico (OCPR) issued a qualified opinion of the fiscal operations of the Vocational Rehabilitation Administration (VRA) of the Department of Labor and Human Resources. 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 VRA did not withhold the special 1.5% contribution in 47% of the vouchers examined issued from 2021 to 2023. The current law and regulations provide that service contracts of more than $300,000 are subject to a 1.5% withholding, unless an affidavit of exception is presented. The Finance director was unaware of this process, due to which the VRA did not have $2,366 available to address other operating expenses.
The two-finding audit also notes that the Finance Division does not have an internal record of authorized signatures to certify invoices. This deficiency fosters the commission of irregularities.
The auditors detected that the VRA did not ensure that the contractors complied with the 20 days established to work on the evaluation of consumers, starting from the date the referral is received. From a sample of 306 services, two contractors provided seventeen services up to 105 days late.
The consumer evaluation period was extended to 30 days for contracts awarded starting in fiscal year 2023. Despite the increase in days, one of the contractors provided 16 services up to 216 days late.
This situation caused consumers not to receive services in time to identify their needs.
The purpose of the Vocational Rehabilitation Administration is to help people with physical or mental disabilities achieve gainful employment, improve their quality of life, self-sufficiency, and self-esteem in order to integrate them into the community in accordance with the parameters established in the Rehabilitation Act of 1973.
The VRA's budget from 2021 to 2024 totaled $295 million and made disbursements of $217 million.
The audit recommends that the Secretary of the Treasury consider the findings on the non-withholding of the special 1.5% contribution, so that the appropriate measures may be taken.
This second and final report on the VRA covers the period from July 1, 2020 to June 30, 2024.
Audit Report OC-25-50 can be obtained on our website: www.ocpr.gov.pr.
Some documents on this page are saved in PDF format.
To view these documents, you must have the following free program installed.
