Comptroller: AAA with erroneous billing and overestimated consumption (CP-08-29)

On June 18, 2008, the Office of the Comptroller published Audit Report CP-08-29 on the Puerto Rico Aqueduct and Sewer Authority (Unit 3020). It is the twenty-ninth report of that audit (period Apr 1, 2004–Dec 31, 2006) and examines the process of reading, validating and billing customer accounts. Adverse opinion: the operations covered by the report were not conducted in accordance with applicable law and regulations. Findings 1 through 5, classified as major.

Finding 1: overestimation of customers’ water consumption, absence of meter readings and erroneous billing for water and sewer service. The Comptroller documents the shift from bimonthly to monthly billing and the new rate structure (Resolution No. 2167), with increases that in some tests exceeded 500 percent. Through June 30, 2005, AAA received General Fund appropriations ($201,212,024, $155,561,229 and $145,573,493 in FY2002-03 to 2004-05); it later stopped receiving them. As of May 17, 2006, it served 1,253,910 customers.

The Special Comment cites customer claims before the Ombudsman with an estimated economic impact of $47,652,792. In the period’s financial frame, the Authority reported revenues/operations of $1,769,728,000 and expenses of $2,156,655,000 (operating deficit $386,927,000); plus 377 civil suits for $831,319,861.

Other major findings cover validation of readings, billing at rates other than those approved, and use of Code T. Recommendations to Justice, the Board of Directors and management: evaluate the billing process to charge actual consumption and protect customers’ rights. Finding ≠ indictment or conviction. Erroneous billing ≠ criminal theft in this note. This note sticks to the PDF without inventing figures. Official primary: OpenDoc CP-08-29. Cousin: none.

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=061f032d-f567-4326-9bbd-7cb81fd621fd&nombre=CP-08-29