The Comptroller reveals out-of-contract payments of more than $200K to debris-removal contractors in Orocovis
The Office of the Comptroller of Puerto Rico (OCPR) issued a qualified opinion on the fiscal operations of the Municipality of Orocovis. A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The Report reveals that the Municipality of Orocovis paid $195,592, between 2019 and 2024, to three contractors for services that were not included in their debris removal and disposal contracts. For example, the purchase of mulch, the rental of trucks with a driver or the transport of heavy equipment, were not included in their contracts.
The director of Finance authorized these payments, despite the warning from the pre-auditors that these expenses were not appropriate. In addition, the Municipality made a duplicate payment by error of $8,502 for the rental of a truck, as indicated by the director of the Office of Planning and Development.
The five-finding audit notes that the Municipality bypassed the requirement to hold a public bid to carry out permanent improvement work on the structures of 25 Head Start and Early Head Start centers. Instead, it split $330,500 into three contracts so as not to exceed the $200,000 limit that the law establishes for holding a public bid. The Municipality of Orocovis administers the federal funds of the Head Start and Early Head Start Project with 35 structures located in Barranquitas, Corozal, Villalba and Orocovis.
In addition, one of the permanent improvement works, the installation of hoods and fire suppression systems in the structures, was carried out by a subcontractor without the prior written authorization of the mayor. This situation did not allow the Municipality to evaluate whether the subcontracted company met the experience and the requirements.
The Report published that the construction or reconstruction works of four indoor courts and improvements to the Community Center in Barrio Mata de Cañas were begun without obtaining the permits from the Permits Management Office (OGPe). Although the permits were obtained 22 to 399 days later, the OGPe could not exercise its regulatory function prior to the start of the work.
The Municipality of Orocovis registered with the OCPR, with a delay of up to a year, copies of 354 contracts and 248 amendments for $11 million from 2019 to 2024. As provided by current law and regulations, no disbursement can be authorized without the contract having been remitted and registered with the OCPR within 15 days from when the contract was granted. This situation prevented the contracts from being available to the citizenry as public documents within the required time.
Orocovis's budget was $8.9 million in 2019, $9.2 million in 2020, $7.9 million in 2021, $7.3 million in 2022, $7 million in 2023 and $7.6 million in 2024.
The audit recommends that the director of the OGPe ensure that the Municipality of Orocovis complies with the Corrective Action Plan established by the OCPR.
This second and final report on Orocovis covers the period from January 1, 2019 to January 31, 2024
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Audit Report OC-25-84 is available on our website: www.ocpr.gov.pr.
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