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The Office of the Comptroller of Puerto Rico (OCPR) has found widespread non-compliance with management standards in the fiscal operations of the Municipality of Rincón.
A report issued Tuesday revealed that the municipality paid $865,000 in excess of the $170,000 contracted for asphalt from 2020 to 2022. Notably, $385,000 of those excess payments were made for asphalt purchased after the contracts had expired.
The situation arose because the municipal administrator did not require the municipal secretary to amend the contracts, the pre-intervenor failed to verify the amount of the purchases, and the municipal buyer did not refer to the contracts during the requisition process. The report recommends that the mayor seek to recover the amounts paid in violation of the law.
The audit identified six findings indicating that the municipality paid $183,000 for air conditioning maintenance services, fumigation, and a use permit without formal written contracts. The absence of signed contracts distorts the reality reflected in the contractual records. The report recommends that the mayor recover this money, which was paid in violation of the Municipal Regulations of 2016.
Moreover, the auditors found that the municipality made purchases totaling $160,000 without obtaining quotes from at least three suppliers. Additionally, purchases amounting to $88,000 were authorized without the required certification confirming a lack of interest from municipal officials and employees. Such deficiencies hinder free competition and lead to irregularities or errors in purchasing and disbursement processes.
Furthermore, the municipality paid $171,000 for the maintenance, purchase and installation of air conditioners without the necessary certification of work performed, as mandated by the Refrigeration Technicians Association Law of 1970 and the Environmental Policy Law of 2004. As a result, it remains uncertain whether those services were provided in compliance with the relevant laws.
The individual responsible for property management did not conduct the annual physical inventory of personal property from 2020 to 2024, a lack of oversight that increases the risk of misuse or loss of property.
Additionally, the municipality failed to provide four disbursement vouchers and their supporting documents, totaling $12,000, for payments made in 2022 for professional services. The absence of documentation prevented verification of the accuracy and ownership of those disbursements.
The report states that, as of July 31, 2024, the Municipality of Rincón had not recovered $99,000 for various items published in four audit reports from the years 2015, 2018, and 2021.
Rincón’s budget ranged from $7.2 million to $8.4 million from 2020 to 2024. The municipality’s financial statements showed accumulated surpluses of $5.5 million, $6.2 million, $7.5 million, and $10.3 million for the years 2020 to 2023, respectively.
The report recommends that the director of the island Office of Management and Budget ensure that the municipality complies with the Corrective Action Plan established by the OCPR.
