Comptroller: AAA overcharged ~$46.38 million with New Billing (CP-10-20)

On March 9, 2010, the Office of the Comptroller published Audit Report CP-10-20 on the Aqueduct and Sewer Authority (Unit 3020). It is the thirtieth report of that audit and examines invoices labeled First and Second Invoice (parts A and B) issued to customers from December 2007 to February 2008 under the New Billing Method approved by the Board on November 1, 2007. Audit finding ≠ accusation or conviction.

Adverse opinion as to that finding: the Authority first billed and collected via the Averaged Last (T) invoice and included that already-billed consumption in later New Method calculations, causing an additional charge to customers. The operations covered by the report were not conducted in accordance with applicable law and regulations; the main finding states that the unit’s principal official did not adequately protect the public interest.

The Comptroller estimates the additional charge at about $46,382,000 (Averaged Last detail of $46,382,467). That charge was not in the then-current rate structure, was not expressly disclosed as deferred billing, and was included as revenue in the Authority’s financial statements. As of June 30, 2008 AAA served 1,290,995 customers, with revenue mainly from water and sewer collections.

The draft finding was discussed with management in 2009–2010; the Comptroller determined the finding stands despite the Executive President’s allegations. Recommendations to the Governor, Legislature, Justice, Citizen Ombudswoman and Board of Directors: evaluate the additional amount billed and adopt immediate corrective measures. This note sticks to the official OpenDoc PDF without inventing figures outside the audited report. Additional charge ≠ criminal theft in this note. Topic politics. Official primary: OpenDoc CP-10-20. Cousin: none.

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=4442c791-f9d2-4d2d-a763-b88894605e25&nombre=CP-10-20