San Juan, Puerto Rico, (June 30, 2026) — The Comptroller of Puerto Rico, CPA and Attorney Carmen Vega Fournier, revealed today the results of a specific-scope compliance audit of the Central Administration of the University of
Puerto Rico (UPR-AC), in which significant deficiencies were identified in the handling of advance payments, the timely recognition of disbursements in the institutional accounting records and the processing of purchase orders.
The audit covered the period from July 1, 2020 to December 15, 2025 and issued an adverse opinion, concluding that the operations related to the accounting records and the disbursements made through advance payments were not carried out in accordance with the applicable legal and regulatory provisions.
“Timely accounting records and the proper use of public funds are essential elements for guaranteeing the reliability of financial information, the sound administration of resources and proper decision-making. The situations identified in this audit require immediate corrective action to strengthen internal controls and prevent the recurrence of these deficiencies,” said the Comptroller.
The report’s first finding relates to the accounting recognition of purchase orders processed through advance payments. The audit determined that the UPR-AC did not recognize in its accounting records, in a timely manner, the disbursements corresponding to nine purchase orders totaling $249,577, while other disbursements corresponding to eight purchase orders totaling $161,489 were recorded with delays ranging between 40 and 967 days beyond the term established by the regulations in force.
According to the Office of the Comptroller, these deficiencies made it impossible to maintain complete and reliable financial information on the actual balances available and on the institution’s economic situation. In addition, during the audited period the balances of the expense accounts were understated and the prepaid expense asset account was overstated by $243,527, while expenses of $154,772 were recognized in incorrect accounting periods.
The audit attributed these situations, among other reasons, to the failure of various university offices to submit the required documentation in a timely manner, the reduction of personnel in financial areas, the increase in the volume of purchases made through advance payments and the absence of adequate procedures to complete the corresponding accounting records in a timely manner.
During the audit process, the university administration acknowledged that the situations identified were mainly due to the sustained decrease in personnel in the areas of Finance, Purchasing and Disbursements, as well as to the significant increase in the volume of transactions that the remaining employees had to handle. Management further reported that it would reinforce internal controls and was evaluating the recruitment of additional personnel to strengthen those administrative areas.
The former President of the University also indicated that during his tenure they faced difficulties recruiting accounting and finance professionals because the classification and compensation plan in force had not been updated in more than four decades, which limited the institution’s competitiveness against the
private sector.
The report’s second finding notes an improper payment of $16,289 made by the University through an advance payment mechanism for maintenance services that were ultimately never used. The purchase order was issued to cover the repair and replacement of parts for critical equipment used by the Information Systems Office during the period from September
2022 to September 2023. However, during that time the equipment never malfunctioned and the University did not require the contracted services to be rendered. Despite this, the advance payment was made to the supplier.
The audit also found that the UPR-AC made an advance payment of $6,050 related to the acquisition of audiovisual equipment intended to strengthen student recruitment efforts. However, the supplier delivered only equipment valued at $2,825, leaving pending the delivery of the rest of the equipment and the installation and training services necessary to put the system into operation. As a result, the equipment remained stored in its boxes and could not be used while the warranty periods elapsed. Following the intervention of the Office of the Comptroller, the University requested that the supplier return the $3,225 overpayment.
The university administration maintained that the maintenance contract responded to the need to guarantee the operational continuity of equipment critical to the institutional technological infrastructure and acknowledged documentary deficiencies related to follow-up with the supplier. Nevertheless, the Office of the Comptroller concluded that the finding stands, noting that it was precisely the auditors’ intervention that prompted the University to begin efforts to reclaim the money overpaid to the supplier.
As a result of the audit, the Office of the Comptroller recommended that the Governing Board ensure the implementation of the corresponding corrective actions and urged the President of the University and the executive director of the Central Administration to strengthen supervision of the processes related to advance payments. Among the principal recommendations are requiring that the requesting units submit in a timely manner the documentation necessary to make the accounting entries, ensuring that disbursements are recognized within the established time frames, refraining from authorizing advance payments for maintenance services not permitted by the regulations, pursuing the recovery of the $16,289 disbursed for services not rendered and establishing follow-up mechanisms that make it possible to promptly claim the return of funds when suppliers fail to deliver contracted goods or services.
The University of Puerto Rico is the island’s principal public higher education institution. During fiscal years 2020-2021 through 2023-2024, the Central Administration recorded revenues amounting to $635.3 million, incurred
expenses of $75.9 million and reflected an accumulated surplus of approximately $559.4 million.
“Financial transparency, compliance with accounting procedures and the responsible use of public funds are indispensable to preserving the trust of the university community and of the public. Implementing the recommendations issued will make it possible to strengthen the University’s financial administration and ensure more efficient management of its resources,” concluded Attorney Carmen Vega.
Audit report OC-26-47 is available at www.ocpr.gov.pr.
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