Comptroller: Tourism formalized 2,287 contracts for $346.2 million (CP-07-15)

On March 7, 2007, the Office of the Comptroller published Audit Report CP-07-15 on the Puerto Rico Tourism Company (Unit 3155). Audit period: Jul 1, 2001–Jun 30, 2005. It examines administrative controls, trust personnel, professional and consulting service contracts, and filing. Adverse opinion: the Company’s operations covered by the report were not conducted in accordance with applicable law and regulations. Findings 1 through 5, classified as major.

Finding 2 (central): from July 1, 2001 to June 30, 2005 the Company formalized 2,287 contracts for services (professional, construction, lease, advertising, consulting, among others) and 315 amendments totaling $346,151,751. The Comptroller documents that 72 percent of contracts (for $203,137,476) and 79 percent of amendments (for $66,387,528) were sent late to the Office of the Comptroller, and that contracts were formalized with retroactive effect (between 4 and 125 days, for $1,051,800 in a cited cut). It recommends abstaining from formalizing retroactive contracts and sending copies to the Comptroller within the legal term.

Finding 1: absence of written regulations for trust personnel. As of April 20, 2006 the Company had 648 employees (63 trust, 10 percent). In the period’s financial frame it received legislative appropriations of $165,671,253, generated revenues of $253,977,445 and incurred expenses of $367,643,376. As of July 1, 2005 the assigned budget was $118,559,288.

Other findings cover disbursement controls, bank reconciliations, budget and documentary filing. Recommendations to the Board of Directors and the Executive Director. Retroactive contracts may harm the public interest, according to the official report. Finding ≠ indictment or conviction. Contract disbursement ≠ theft. Primary: OpenDoc CP-07-15. Cousin: none.

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=070a5f59-9d18-4cf0-8257-8665152e4fe3&nombre=CP-07-15