Comptroller notes multimillion-dollar irregularities and food losses
at the School Food Authority
San Juan, Puerto Rico – (June 30, 2026) The Comptroller of Puerto Rico,
CPA and Attorney Carmen Vega Fournier, reported today the publication of Audit Report OC 26 51, related to the evaluation of the fiscal and administrative operations of the School Food Authority (AEA) of the Department of Education, corresponding to the period from July 1, 2021 to September 30, 2025.
The audit examined whether the operations of the School Food Authority complied with the law, the regulations in force and the principles of sound public administration.
The report concluded with a qualified opinion, having documented non-compliance in key areas such as purchasing processes, property control, disbursement procedures and management of the vehicle fleet.
Among the findings, it was noted that the AEA’s purchases of goods were neither awarded nor carried out in accordance with Act 73-2019, the General Services Administration Act for the Centralization of Government Purchases of Puerto Rico; nor with Regulation 9230 of the General Services Administration (GSA), nor with Circular Letter GSA 2023 02. This resulted in incomplete files and awards made without the proper authorization. In addition, the Office of the Comptroller of Puerto Rico (OCPR) noted deficiencies in inventory management: 4,592 pieces of equipment valued at $1.8 million remained unused, some without property numbering or adequate records, which increases the risk of loss or deterioration.
The OCPR also detailed that, in multiple purchases, certifications of fund availability were not obtained prior to issuing the orders, nor were they recorded in a timely manner in the Department of Education’s Financial Information System (SIFDE). These situations affected the reliability of the financial information, budgetary control and the transparency of the payment processes.
In addition, the auditors noted that the officers in charge of official vehicles in various regions did not hold the required appointment as assistant transportation manager, as required by Regulation 9177, which limits proper supervision and compliance in the management of government vehicles.
The report includes a Special Comment noting that the Authority maintains an outstanding balance of $267,332 for the loss of food donated under the Federal Food Distribution Program. These losses occurred in several warehouses due, among other causes, to the malfunction of refrigeration equipment and the expiration of products, as documented by the State Food and Nutrition Services Agency (AESAN).
In addition, the audit contains 10 principal recommendations directed to the Secretary of Education, to the Undersecretariat of Administration and to the Director of the AEA, focused on correcting the purchasing processes, strengthening supervision, improving inventory management
and preventing losses of public funds and property.
This audit report OC 26 51 is available on the portal www.ocpr.gov.pr.
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