Comptroller: Highway Authority failed to remit 56+110 Route 66 orders (CP-10-13)

On December 11, 2009, the Office of the Comptroller published Audit Report CP-10-13 on the Puerto Rico Highways and Transportation Authority — Route 66 / Eastern Corridor (Unit 3125). It is the third report from that audit; period January 1, 1998 to June 30, 2009. It examines administrative aspects of construction contracts, change orders and additional work orders for Phase Two. Adverse opinion: the operations in findings 1 to 3 were not conducted in accordance with applicable law and regulations (principal findings).

Finding 1: absence of important clauses and information in two Phase Two construction contracts. Finding 2: failure to comply with law — the Authority did not remit to the Comptroller’s Office 100% of the 56 change orders nor of the 110 additional work orders documented (net effect cited as ($1,863,386)), nor record them in the Authority’s Contract Registry. Finding 3: important original documents not supplied for examination.

As of June 30, 2009 Route 66 costs totaled $264,133,356. In one sample contract, the Authority approved 36 change orders and 55 additional work orders with a net effect of raising cost (e.g. $13,888,084 in additional work). Failure to remit denied the Comptroller timely review of those amendments under Law No. 18.

Recommendations to the Secretary of Transportation and Public Works and the Executive Director: include clauses that protect the Government and send contracts or amendments to the Comptroller within the term (Law No. 18 / Regulation No. 33 / OC-10-07). Finding ≠ conviction. Construction cost ≠ improper disbursement or theft. This note tracks the PDF. Topic politics. Official primary: OpenDoc CP-10-13. Cousin: none.

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=b3e90046-79b1-4e58-86d8-0bea563b45f2&nombre=CP-10-13