Articles

Monitoring compliance with public funds

Several laws in Puerto Rico prohibit the disbursement of public funds to nonprofit organizations (NPOs) that have not complied with their responsibilities and are not in compliance (Good Standing) with the Departments of State and Treasury, the Office of the Comptroller recalled.

“The disbursement of public funds to these organizations is not appropriate, whether the funds are for their own use or for the organization to serve as an intermediary in the disbursement to a third party. If it receives and disburses the funds without being in compliance, the NPO is subject to the recovery of these by the State,” stated the Comptroller, Yesmín M. Valdivieso, in a press release.

Likewise, she added that no public or elected official may allocate funds to an entity that is not up to date in its responsibilities. Legislators assume an executive function through the administrative determination of the specific use of the funds. “On this, see the provisions of Article IV, Section 4 of the Constitution of the Commonwealth of Puerto Rico and what was resolved by the Supreme Court of Puerto Rico in the case Noriega v. Hernández Colón, 135 D.P.R. 406, 458 and 466 (1994),” the press release adds.

Therefore, prior to the allocation of public funds, an evaluation must be carried out on whether the NPO is qualified or not to carry out the work or service for which these funds are allocated.

“We urge all NPOs to get up to date with all the required government entities and public or elected officials not to allocate funds to NPOs until they make sure they are in compliance. The Office of the Comptroller published the informative booklet Nonprofit organizations, use of property and public funds,” she stated.

To get oriented, they can be accessed at www.ocpr.gov.pr. (Booklets and Publications).

“Any person who does not comply with these provisions will be required and obligated to reimburse the public funds illegally disbursed,” she indicated.

Two weeks ago, Valdivieso confirmed to EL VOCERO that an extensive audit on the use of the funds from the so-called “pork barrel” for permanent works had to be expanded and is about to conclude.

She recalled that the Secretary of Agriculture, Ramón González Beiró, who is the custodian of the Municipal Improvements Fund, has commented that large amounts of money were being allocated to nonprofit organizations for non-qualified matters, which is under the scrutiny of the Office of the Comptroller.

She detailed that as part of the audit, they interviewed some legislators whose names she withheld.