Press Releases

Comptroller reveals improper payments and payroll failures at the Department of Agriculture

San Juan, Puerto Rico (August 18, 2026) – The Comptroller of Puerto Rico, CPA and Attorney Carmen Vega Fournier, published today Audit Report OC-27-18 of the Department of Agriculture covering the period from July 1, 2021 to June 30, 2025. The report reveals serious deficiencies in the payroll processes, lump-sum payments and internal controls of the Department of Agriculture. The audit, which concluded with a qualified opinion, found failures that caused improper payments, incorrect disbursements and exposure to fiscal risks that directly affect the use of public funds.

The auditors found that the Department made improper payments of $12,221 to 11 former employees between September 2021 and November 2024. These payments included disbursements after separation from service, payments for days not worked without available leave, and salary adjustments that were not deducted. The report further indicates that the corresponding collection efforts were not initiated, since the official form to bill these debts was not prepared, contrary to the provisions of the applicable circular letters and the regulations in effect.

In addition, the findings note deficiencies in the process of liquidating accumulated leave and other lump-sum payments to personnel who separated from service. During the audited period, the Department disbursed $150,164 in liquidation payments to 30 former employees; however, the auditors detected errors in the computations totaling $46,113, which resulted in overpayments and underpayments. In addition, in 83 percent of the cases examined, the Department did not submit the required supporting documents to the Department of Treasury, which made it impossible to carry out the necessary verifications and certifications. Likewise, as of September 30, 2025, liquidation payments of $75,243 had not been made to 20 employees who had accumulated leave upon separating from service, a situation that could give rise to claims and affects compliance with employer obligations.

A third finding notes that the managerial officer of the Payroll Section performed conflicting functions within the RHUM system and other institutional systems. The official had access to create, modify and process personnel transactions, in addition to handling adjustments and deactivations in various systems, which concentrated incompatible functions in a single person. According to the audit, this lack of segregation of duties increases the risk of irregularities and limits the ability to detect errors in a timely manner, contrary to what is established in Act No. 230 of 1974 regarding the need for fiscal structures that provide a proper separation of functions and responsibilities. Management indicated that it has already designated additional personnel to separate these functions.

"These findings demonstrate non-compliance with the regulatory provisions of the Department of Treasury, the absence of adequate internal controls, a lack of awareness of responsibilities on the part of some officials and an excessive workload," said the Comptroller.

However, the Department stated that it had initiated corrections, including new computations, payment adjustments and collection efforts. Nevertheless, the Comptroller determined that the findings prevail and recommended strengthening the corrective measures to address the situations noted and prevent them from recurring.

Among the recommendations, the Comptroller urges the Secretary of the Department of Agriculture to ensure compliance with the applicable rules and procedures by Human Resources and Finance personnel, to make the outstanding payments and collections, and to correct the deficiencies in the handling of files and payroll processes. It also recommends establishing a proper segregation of duties to reduce fiscal and administrative risks.

Audit Report OC-27-18 is available at ocpr.gov.pr.