Comptroller reveals deficiencies with disbursements at PRFAA and recommends evaluating its exclusion from General Services to make its purchases
The Office of the Comptroller of Puerto Rico (OCPR) issued a qualified opinion on the fiscal operations of the Puerto Rico Federal Affairs Administration (PRFAA). A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The Report reveals that PRFAA made 16 purchases of goods and services for more than $5 thousand, outside the dates authorized by the General Services Administration. Act 73-2019 established that all purchases and bids of goods, works, and non-professional services must make their purchases through General Services unless this function is delegated to the governmental entity. PRFAA obtained authorization to make purchases in three periods; however, this law did not contemplate the fact that PRFAA operates outside the island of Puerto Rico, which causes the process to be inefficient.
The two-finding audit notes deficiencies with the pre-intervention of the supporting documents prior to the disbursements. From the examination of a sample, it was identified that 20% of the vouchers did not have the evidence that they were pre-intervened, 17% did not include the purchase order, and 13% did not have the corresponding quotes. The payment vouchers were for travel expenses, vehicle leasing, and payroll payment, among others.
The auditors detected that the Classification and Compensation Plan of October 18, 2002, did not obtain the advice of the Office of Management and Budget, as established by Act 77 that created the Puerto Rico Federal Affairs Administration of July 19, 1979. This situation can cause incompatibility with established norms and guidelines, a fact that hinders the administration of human resources.
PRFAA's budget rose to $16.8 million from 2019 to 2024, and it made disbursements for $14.1 million.
The Report recommends that the administrator of General Services evaluate amending Act 73-2019 to exclude its application to PRFAA, because it operates outside the territorial limits of Puerto Rico.
The PRFAA audit report covers the period from July 1, 2019, to June 30, 2024
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Audit Report OC-25-56 is available on our website: www.ocpr.gov.pr.
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