Comptroller: adverse opinion on DDEC professional contracts (CP-12-05)

On September 30, 2011, the Office of the Comptroller published Audit Report CP-12-05 on the Department of Economic Development and Commerce (Unit 3185). Second report of that audit (period Jul 1, 2004–Dec 31, 2008); the first covered internal controls (CP-09-xx series referenced in the PDF). Focus: professional and consulting service contracts. Adverse opinion on that matter: the DDEC fiscal operations covered by the report, as to those contracts, were not conducted in accordance with applicable law and regulations.

Finding 1 (principal): improper payments for advertising services rendered without formalizing a written contract. The Comptroller documents improper disbursements of $65,402 and recommends recovery efforts. It examines contracts with two private entities totaling $2,259,380; with Company A, 7 contracts and 3 amendments totaling $2,218,830 were formalized.

Finding 2 (principal): missing information in professional and consulting service contracts, delay in sending contracts to the Comptroller’s Office, and other registration/evaluation deficiencies. Finding 3 (secondary): missing certifications on invoices submitted for payment and other voucher irregularities.

DDEC was created by Reorganization Plan No. 4 (2009) to foster trade and investment. Finding ≠ conviction. Contract disbursement ≠ theft. Topic politics. Primary: OpenDoc CP-12-05. Management answered draft findings before the final version. This note sticks to the OpenDoc PDF. Official Comptroller report. Cousin: none.

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=989c894c-09a3-450a-8845-4970142539fa&nombre=CP-12-05