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Comptroller’s audit of the Municipality of San Sebastián issues a favorable opinion and notes recommendations regarding administrative shortcomings and compliance with the monthly payroll and positions reports

San Juan, Puerto Rico (July 29, 2026) – The Comptroller of Puerto Rico, CPA and Attorney Carmen A. Vega Fournier, published today an audit report of the Municipality of San Sebastián. The report covers the operations related to the purchasing and disbursement processes. It also analyzed the award, delivery and installation of cisterns with pumping systems for families facing problems with their drinking water service.

The tests performed by the auditors reflected a favorable opinion, concluding that the operations examined were carried out, in all significant respects, in accordance with the applicable law and regulations. Nevertheless, the report includes three special comments related to administrative matters that require attention in order to strengthen internal controls and compliance with legal provisions and that require prompt attention, but do not compromise public funds.

Among the special comments, the report highlights the recurrence of delays in the submission of the monthly payroll reports and of the Registry of Positions to the Office of the Comptroller of Puerto Rico (OCPR). The audit notes that these delays limited the ability of the OCPR, the Government and the public to have timely, up-to-date information on the Municipality’s operations, affecting transparency and access to public information.

In addition, the report indicates that the Municipality did not have a public documents administrator officially accepted by the Institute of Puerto Rican Culture (ICP) during the fiscal years evaluated. This situation meant that the inventory, the retention plan and the public document disposition lists required by law were not submitted in a timely manner, which weakens control over the administration and preservation of official documents.

The report also mentions fines imposed by the Office of Government Ethics of Puerto Rico on a former official and a former municipal employee. In one case, a former director of the Head Start Program accepted responsibility for the improper handling of municipal property and received an administrative fine of $3,000. In another, a former municipal employee was fined $1,000 for a violation of the provisions of the Government Ethics Act related to the hiring of former public servants.

The audit also records the explanations offered by the municipal administration. Regarding the payroll and positions reports, the Municipality maintained that most of the delays corresponded to the previous administration and emphasized that the current administration implemented corrective measures to strengthen coordination among departments and to ensure that subsequent reports were submitted within the established time frames. With respect to the administration of public documents, the Municipality indicated that, following the OCPR’s notification, it began the steps necessary to formalize the designation of the public documents administrator in accordance with the ICP’s requirements.

The report contains recommendations directed to the Mayor and to the Office of Management and Budget to ensure timely compliance with the submission of the required monthly reports, provide training to the responsible personnel, strengthen administrative controls and ensure that the Municipality has an officially designated public documents administrator, in accordance with the applicable laws and regulations.

“Transparency and sound public administration require that government entities comply in a timely manner with their legal obligations and maintain effective administrative controls. Addressing these recommendations strengthens accountability and helps preserve the public’s trust in its institutions,” the Comptroller said.

Audit Report OC-27-08 is available at www.ocpr.gov.pr.