Comptroller reveals flaws in internal controls and in procurement processes at the Retirement Board
San Juan, Puerto Rico (August 27, 2026) — The Comptroller of Puerto Rico, CPA and Attorney Carmen A. Vega Fournier, released the results of the compliance audit conducted on the Government of Puerto Rico Retirement Board, covering the period from July 1, 2021, to May 31, 2025. The examination yielded three significant findings and two special comments regarding the contracting of professional services, the management of public property, and the Board's internal governance.
The report revealed improper payments totaling $8,049 made to a contractor for services provided after contract funds had been exhausted, as well as deficiencies in the pre-audit of invoices, including missing required data, the absence of service reports, and certifications issued without authorized signatures. An overpayment of $293 in advertising commissions beyond the permitted limit was also detected.
Auditors also identified that the Board awarded a $348,333 contract and a $140,000 amendment to a foreign corporation that was not registered in the Unified Registry of Professional Service Providers at the time of contracting. This violates applicable legal and regulatory provisions.
Regarding property, the audit noted the absence of a physical inventory at the time the property manager was appointed in 2022, as well as significant discrepancies between the Board's internal records and information from the Department of the Treasury. In total, 1,199 units worth $2.6 million were not registered with the Treasury, while 894 units worth $4.1 million that had been internally written off remained unupdated in the official system.
As part of the special comments, the Office of the Comptroller of Puerto Rico (OCPR) warned that, despite the Board having received FEMA and CDBG-DR funding allocations and insurance claims totaling $28.6 million, reconstruction work on the former Retirement Systems Administration headquarters had not begun as of December 8, 2025. Furthermore, the Board's Internal Audit Committee did not hold any meetings from its creation in June 2022 until May 2025, failing to comply with the requirements of Circular Letter 2022-002.
“These deficiencies identified in the audit weaken administrative processes and increase the risk of irregularities. We urge all officials to maintain strict internal controls, properly formalize their contracts, and ensure the responsible use of public funds,” the Comptroller stated.
Audit Report OC-27-25 is available at ocpr.gov.pr.
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