Comptroller’s report finds 5 major deficiencies in Vega Alta operations
By THE STAR STAFF
Puerto Rico Comptroller Carmen Vega Fournier on Wednesday released Audit Report OC-27-34 on the administrative and fiscal operations of the Municipality of Vega Alta, covering March 1, 2020, through June 30, 2024.
“The report revealed five findings that affect public management, the sound administration of funds and compliance with current regulations,” the comptroller said.
The audit, conducted by the Office of the Comptroller of Puerto Rico (OCPR), found that the municipality paid for services without a valid contract, resulting in improper disbursements and leaving no legal framework defining the obligations of each party.
Auditors also documented investments totaling $962,238 in the construction and improvement of structures on land owned by the central government. This prevents the municipality from recognizing the projects as assets and creates a risk of loss if government agencies dispose of the land or reclaim it.
The report further found that the municipality carried out construction work valued at $172,080 without the building permits required by the Permits Management Office. In addition, it signed contracts worth more than $1 million without first obtaining the bonds needed to guarantee performance and protect municipal interests. Auditors also found a $2,500 payment for work not performed as contracted, which pointed to weaknesses in project oversight and certification.
In procurement, OCPR auditors identified purchases made without the required price quotations, awards that did not go to the best bidder, and errors in bid evaluations that led to overpayments. They also found shortcomings in the handling of micro-purchases, including inadequate records, missing documentation to justify their use, and a lack of controls to prevent errors or irregularities. According to the report, those conditions undermine transparency, weaken competitive processes and limit the municipality’s ability to secure fair and reasonable prices.
Another finding involved donations to a nonprofit organization that did not submit evidence of how it spent prior-year funds. The municipality also disbursed the money before formalizing a contract.
The comptroller recommended that the mayor, the municipal legislature and the Office of Management and Budget take corrective action. Among other steps, she called on the municipality to recover funds improperly paid and to ensure every contract is in force before services are received. She also recommended obtaining construction permits before starting work, requiring bonds before formalizing contracts, and establishing adequate controls over donations.
