Comptroller notes deficiencies in the handling of procurement processes in the Head Start and Early Head Start Programs of the Municipality of San Germán
San Juan, Puerto Rico (June 30, 2026.) The Comptroller of Puerto Rico, CPA and Attorney Carmen Vega Fournier, presented today the results of a compliance audit of the Head Start and Early Head Start programs of the Municipality of San Germán covering the period from January 1, 2020 to December 31, 2024; the evaluation also included transactions from prior and subsequent years.
This is the second report, with a qualified opinion, and it notes that although most operations were carried out in accordance with applicable laws, significant deficiencies persist that require correction.
The audit identified failures in the procurement processes and in the handling
of the Municipality's documents, even though the remaining areas examined demonstrated compliance.
The report is the second one related to these programs and details one finding divided into two (2) principal observations: a contract formalized before the regulatory term of 10 days following the award, and the absence of the bid bonds required in another auction, documents that should have been available for examination.
The evaluation reviewed the award and formalization of contracts, disbursements, construction projects, purchases, services and inventory. With the exception of the finding noted, operations complied with administrative and legal requirements.
The report details that between 2020 and 2024 the programs administered annual budgets between $3.7 and $4.7 million. During that period, the Municipality awarded 14 contracts and 65 amendments, totaling $12.2 million, in addition to three (3) individual contracts and 26 additional amendments evaluated at $2.7 million. At the time of the analysis, $2.3 million had been paid, leaving an outstanding balance of $415 thousand as of March 31, 2025. The project with the greatest delay, the remodeling of the Jaime Sancho Cardona School, was 92 percent complete.
One of the observations indicates that on December 11, 2020 the then-mayor signed a contract for $273,952 to remodel the Head Start Center of the Lavadero B ward without waiting the regulatory 10 days from the notice of award issued on December 3. The formalization occurred on the eighth (8th) day, violating the 2016 Municipal Regulation and exposing the Municipality to possible challenges.
The second observation concerns the absence of the bid bonds related to the January 30, 2020 auction for the remodeling of the Sabana Eneas Head Start Center. The auditors found no evidence of these bonds, and a formal search conducted in 2025 also failed to locate them. The situation made it impossible to validate compliance with the auction requirements and constituted a serious deficiency in document management and internal controls, in violation of the 2020 Municipal Code and the 1991 Autonomous Municipalities Act.
In its comments, the current administration maintained that the audited processes belong to the previous administration and that internal controls have been strengthened. It stated that an exhaustive inventory of documents is now required before awarding and formalizing contracts. For his part, the former mayor rejected the observation, alleging that the contract was signed on the ninth day and that there were no objections preventing it, and further insisted that the bonds should have been on file. Nevertheless, the Office of the Comptroller maintained its determination and upheld both findings.
The Comptroller recommended ensuring compliance with the Corrective Action Plan, ensuring that contracts are formalized only after the regulatory 10 days, and establishing a reliable filing system that allows bonds and auction documents to be preserved and located.
"We urge officials to maintain legal, ethical and efficient practices, ensuring the proper use of public funds and public trust. Our institutional commitment is to transparency, integrity and good public administration," said Vega Fournier.
The complete report number OC-26-48 is available on the portal of the Office of the Comptroller of Puerto Rico, www.ocpr.gov.pr.
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