Comptroller of Puerto Rico reveals oversight failures involving more than $114,000 in incentives awarded to merchants in Florida
San Juan, Puerto Rico – (July 8, 2026) The Comptroller of Puerto Rico, CPA and Attorney Carmen A. Vega Fournier, reported today the results of an investigation that revealed deficiencies in the oversight of an economic incentive program through which the Municipality of Florida disbursed $114,500 to 138 merchants. This, without following up on the requirement to submit documentary evidence on the use of the public funds received.
The investigation by the Office of the Comptroller of Puerto Rico (OCPR) was initiated following the evaluation of a complaint related to the award of those incentives.
The report notes that the Municipal Legislature authorized the incentive program for the purpose of assisting merchants affected by Hurricanes Irma and María, the earthquakes, the COVID-19 pandemic and inflation, given that state and federal aid proved insufficient. In December 2022, the Municipality distributed $114,500 among 138 eligible merchants.
Municipal regulations provided that each beneficiary had to submit, within a 90-day period, a detailed report on the use of the funds, accompanied by the corresponding supporting documentation. They also established that the Municipality had to carry out follow-up efforts when the reports were not submitted in a timely manner. However, the investigation determined that this follow-up was never carried out.
During the investigation, the Finance director certified that the merchants were oriented on the permitted use of the funds and on the requirement to render the expense report. Nevertheless, she also acknowledged that the steps necessary to require the submission of those reports were not taken, and therefore she lacked the documentation that would make it possible to verify whether the incentives were used in accordance with the authorized purposes.
As a result, the OCPR concluded that this omission limited the Municipality’s ability to exercise effective oversight over the use of public funds and to validate that the resources were used in accordance with the program’s provisions. In addition, the lack of follow-up creates the risk of improper use of the economic incentives awarded. “It is essential to comply with the principle of accountability, since it requires demonstrating that public funds were used for the authorized purposes,” said the Comptroller of Puerto Rico.
As part of the recommendations, the OCPR urged the mayor of the Municipality of Florida to ensure compliance with the guidelines established for the administration of economic incentives and to strengthen controls for future calls for applications. Among the measures suggested is establishing administrative penalties for those who fail to submit the expense reports, including disqualification from future assistance and the initiation of processes to recover funds that cannot be duly justified.
Investigation Report OC-27-03 is available on the Office of the Comptroller’s website, ocpr.gov.pr
Some documents on this page are saved in PDF format.
To view these documents, you must have the following free program installed.
