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Audit report reveals deficiencies in purchasing, contracting and human resources in the Municipality of Añasco

San Juan, Puerto Rico, (May 21, 2026) – The Comptroller of Puerto Rico, Attorney and CPA Carmen A. Vega Fournier, published today Audit Report OC-26-31 of the Municipality of Añasco, corresponding to the period from January 1, 2021 to June 30, 2024, in which she issued a qualified opinion on the fiscal operations examined. The report reveals multiple deficiencies related to purchasing processes, contracting, human resources, fiscal controls and municipal administration.

The audit determined that the Municipality made payments of $2,320 in excess of the contracted amount for the rental of heavy equipment, after $32,320 was disbursed under a contract whose approved amount was $30,000, without formalizing a prospective amendment to the contract, as required by the rules applicable to government contracting.

The report also notes that the Municipality issued purchase orders for $54,145 without obtaining the quotes required by law. Among the findings, the issuance of purchase orders for heavy equipment rental services and lighting and sound services was identified without requesting, in most cases, the three required quotes from representative market suppliers. In addition, delays were detected in the issuance of purchase orders and requisitions after the services were received.

In the human resources area, the Office of the Comptroller of Puerto Rico (OCPR) found that several officials were appointed without meeting the minimum requirements of academic preparation and experience established in the Municipality's Classification and Compensation Plan. Among these, appointments were identified to the positions of director of Public Works, director of Recreation and Sports and director of the Municipal Office for Emergency Management. It was also noted that the position of commissioner of the Municipal Police was not included in the Classification Plan and that some appointments were not submitted for confirmation by the Municipal Legislature.

The report indicates that an official held the position of director of Public Works on an interim basis for a period of 235 days, exceeding by 115 days the limit allowed by law, which resulted in improper payments of salary differentials of $3,445.

Other findings included in the audit are related to errors in payments of liquidations of accrued leave, deficiencies in disbursement vouchers and irregularities in processes related to the emergencies of Hurricanes María and Fiona. Also, the OCPR auditors found deficiencies in bank reconciliations and monthly reports of revenues and disbursements, absence of effective efforts to comply with financial clauses in contracts for medical facilities, gratuitous transfer of heavy equipment in contravention of municipal ordinances and outdated personnel regulations.

The audit also included a special comment related to fines imposed on an employee, a former employee and a municipal official for violations of the Government Ethics Act of Puerto Rico.

For his part, the mayor maintained that, in the case of the payment related to the rental of heavy equipment, the disbursements corresponded to services actually rendered within the contractual term and argued that the Municipal Code allows payments for services received. Nevertheless, the OCPR determined that the finding prevails because the contractual amount constitutes an essential element of the contract and any increase should have been formalized through a prospective amendment.

Likewise, the mayor indicated that corrective measures and instructions to the personnel concerned would be taken to reinforce the purchasing, requisition and internal control processes related to quotes and purchase orders.

Among the main recommendations of the report, the OCPR recommended that the mayor of Añasco ensure that contracts and their amendments are formalized in accordance with law before making payments, require compliance with the purchasing and quoting procedures and strengthen the controls related to purchase orders and fund obligations.

“The deficiencies identified in this report show the need to reinforce internal controls, ensure adequate purchasing and contracting processes and guarantee that appointments are made in accordance with the established requirements to protect the public interest,” stated the Comptroller of Puerto Rico.

Audit report OC-26-31 can be found on our website: www.ocpr.gov.pr.