Comptroller reveals that the Municipality of Cidra did not recover the $100 thousand granted as initial capital to a municipal company
The Office of the Comptroller of Puerto Rico (OCPR) issued a qualified opinion on the fiscal operations of the Municipality of Cidra. A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The Report reveals that the Municipality of Cidra did not recover the initial capital of $100 thousand that it granted in 2017 to the municipal company Cidra Investments and Management, Inc. (EMCIM). This municipal company was dissolved on January 30, 2024, without determining whether it had profits, the bank account was closed, and the available balance of $30 thousand was transferred to the Municipality's general account.
The mayors and municipal legislatures in office did not protect the interests of the Municipality, nor did they fulfill their duty to regulate the return of capital.
The three-finding audit notes that the Municipality did not establish monitoring plans or oversight programs of the municipal company EMCIM, as provided by Ordinance 4 of 2017. This type of deficiency can have the effect of errors and irregularities being committed and not being detected in time to assign responsibilities.
The Municipality of Cidra granted a $10 thousand donation to a women's basketball team for the operating and franchise expenses of 2022. However, the owner had been expelled and the team suspended by the Women's National Superior Basketball league for the 2022 season. What the owner did was pay a deposit of $9,000 to the league, for a debt from previous years. The Municipality did not require the owner to provide a detailed economic report, required by the regulation, on the use given to the donation.
The Report comments that the Municipality has not addressed the recommendations to recover more than $100 thousand for various concepts corresponding to audit reports M-14-59 of 2014 and M-16-39 of 2016.
Cidra's budget was $14.9 million in 2021, $14.2 million in 2022, $14.1 million in 2023, and $15.8 million in 2024. The accumulated financial statements reflected an accumulated deficit of $179 thousand in 2020, and surpluses of $1.4 million in 2021, $8 million in 2022, and $16.5 million in 2023.
The audit recommends that the director of the Office of Management and Budget ensure that the Municipality of Cidra complies with the OCPR's Corrective Action Plan.
This second report covers the period from January 1, 2021, to December 31, 2023.
Audit Report OC-25-62 is available 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.
