The Comptroller reveals multiple control deficiencies in the Municipality of Comerío over property loss of $104K, improper payments of $5K, and failure to collect rents of $80K
The Office of the Comptroller of Puerto Rico (OCPR) issued a qualified opinion on the fiscal operations of the Municipality of Comerío. A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The Report reveals that the Municipality of Comerío paid $5,255 for professional services without a prior increase in the amount of one of the amendments to the contract formalized in 2017. In contravention of the rules applicable to government contracting, the Municipality increased the amount retroactively to cover services rendered through August 30, 2022.
This contract, granted to document and claim damages caused by Hurricane María before FEMA for $32,250, was amended on 17 occasions up to $533,360, in effect through June 30, 2025. The current legal framework establishes that contract amendments must be prospective and in writing. The Report recommends that the mayor recover the amount paid contrary to law and regulations.
The five-finding audit notes that the Municipality of Comerío has not collected $79,850 in rent since 2017 for three premises in effect through 2027. The contracts established that the tenants were responsible for charges for electricity, water, gas, telephone and any other basic service.
However, the Municipality assumed the cost of $39,225 for sewer and electric power charges, instead of charging them to the tenants. The payment of these services contrasts with the income of $31,450 from rent of the premises.
On the other hand, the Municipality allowed the use of one of the premises for 14 additional months after the contract had expired, and changed the business concept of another premises without obtaining the Single Permit. This permit was obtained two months after the Comptroller's auditors reported the situation.
The Report evidences multiple deficiencies with the petty cash fund, as credit and reimbursement purchases were made. In addition, from 2021 to 2024, no periodic reviews of the fund were performed to determine its use and operation.
On the other hand, the examination of the Municipality of Comerío's perpetual inventory was not reliable since 57% of a sample of items did not match the quantities written in the inventory. Nor did the inventory count the gallons and buckets of paint, the storage boxes, or the hydraulic oil stored in the drones.
In addition, the property custodian did not perform 35 complete annual inventories of movable property in 28 municipal areas from 2022 to 2024. These situations of lack of internal control foster the improper use of materials or their loss. In addition, it does not allow responsibilities to be assigned.
As of April 26, 2024, the Municipality had not investigated the loss of 148 property units valued at $103,559. The Municipality had no information about the causes of the loss of two air conditioner consoles, 16 communication radios, 15 trimmers and a telescopic generator, among other unlocated units.
The General Fund budget of the Municipality of Comerío was $6.8 million in 2021, $6.4 million in 2022, $5.9 million in 2023 and $5.7 million in 2024. The financial statements reflect accumulated surpluses of $4.7 million for 2021, $6.1 million for 2022 and $8.6 million for 2023.
This first report on Comerío covers the period from January 1, 2021 to February 29, 2024.
Audit Report OC-26-02 is available on our website: www.ocpr.gov.pr.
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