Comptroller reports five findings in the Head Start Program of the Municipality of Mayagüez related to construction permits, purchases, use of equipment, personnel administration and property control.
San Juan, Puerto Rico (June 30, 2026.) The Comptroller of Puerto Rico,
CPA and Attorney Carmen A. Vega Fournier, reported today the results of a compliance audit of the Head Start Program of the Municipality of Mayagüez, corresponding to the period from July 1, 2017 to June 30, 2024.
The report contains a qualified opinion, which means that the operations examined were carried out, in all significant respects, in accordance with the applicable law and regulations, except for the situations contained in findings one (1) through five (5).
The auditors determined that the works evaluated were awarded in accordance with the regulations; that the established policies and bonds were required, as well as the payment of licenses and excise taxes; that the disbursements were made in accordance with the contracts; that the work was carried out as agreed and within the contractual term; that the contract clauses were complied with; and that the contracted corporations complied with the applicable provisions.
However, not all the required permits from the regulatory agencies were obtained. The examination of the purchases and disbursements related to the COVID-19 emergency also produced adverse results, as detailed in findings two (2), three (3) and five (5).
The audit identified multiple deficiencies in the Program’s administrative processes. The first finding revealed that the Municipality carried out works for $312,760 without the required construction permits and without providing inspection reports or files, which made it impossible to verify the correctness of the projects and exposed the Municipality to risks and penalties.
The second finding notes that the Program specified particular brands in requisitions for the purchase of vehicles and acquired services without issuing the corresponding purchase orders. These practices limited free competition, violated regulations and affected budgetary control.
The third finding establishes that equipment acquired for $18,176 remained unused, stored for years, which constituted an inefficient expenditure and was contrary to federal and municipal standards.
The fourth finding determined that the Program did not submit for approval the 2001 Career Service Classification and Compensation Study, nor its salary scales, failing to comply with legal requirements and affecting proper personnel administration.
The fifth finding reveals that 150 electronic dispensers acquired for $19,665 in 2021 had not been recorded or marked with property numbers, failing to comply with the 2016 Municipal Regulation. The lack of recording weakened internal controls and increased the risk of loss or improper use.
Despite the justifications presented by the Municipality in relation to the five (5) findings, the Comptroller maintained that the observations stand.
The report recommends that the director of the Office of Management and Budget ensure that the Municipality of Mayagüez complies with the Corrective Action Plan established by the OCPR to address the five (5) findings.
The Mayor and the Governing Board were recommended to ensure that the Program’s director requires and obtains the permits from the regulatory agencies before beginning any construction work or permanent improvement. They must also ensure that the Program establishes the internal controls necessary to maintain a complete file for each contracted project, with the documents required by law and regulation.
The report further recommends that the general manager of the Fiscal Area be oriented and supervised so as to issue instructions to purchasing agents aimed at preventing the inclusion or suggestion of exclusive characteristics or brands in purchase requisitions and specifications. It must also be ensured that purchase orders are issued and recorded before the goods are received or the services are rendered.
The Comptroller urged the officials and employees of the Head Start Program of the Municipality of Mayagüez “to ensure compliance with the applicable law and regulations, strengthen internal controls and promote the effective, economical, efficient and ethical use of government resources for the benefit of the people of Puerto Rico”.
Audit Report OC-26-49 is available on the official portal of the Office of the Comptroller of Puerto Rico, www.ocpr.gov.pr.
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