Comptroller: adverse opinion on Ports Authority (CP-13-07)

On November 12, 2012, the Office of the Comptroller published Audit Report CP-13-07 on the Puerto Rico Ports Authority (Unit 3135). It is the third report of that audit; period examined Jan 1, 2007–Dec 31, 2011. It contains eight findings. Adverse opinion: the Authority’s fiscal operations covered by the report were not conducted in accordance with applicable law and regulation.

Findings include deficiencies in evaluating proposals for financial-statement audits (Finding 1); conflicting DEA roles in Economic Development in soliciting/evaluating/recommending firms and administering contracts (2); missing clauses and information in contracts and amendments (3); insurance policy not renewed (4); budget information unavailable on professional-service contracts (5); failure to follow external and internal auditor recommendations and management letters (6); failure to comply with the Internal Revenue Code on information returns and tax withholding for firms (7); and deficiencies in billing by contracted firms (8).

From Jan 2007 to Oct 2011 the Authority made 41 payments to 5 CPA firms totaling $748,799 (financial audits and consulting). In FY2010-11 it reported operating revenues of $712,511,000, contributions and other $294,094,000, and expenses $1,056,464,000 (asset decrease $49,859,000). It operates LMM and regional airports.

Management and the Board answered drafts in 2012. Finding ≠ charge or conviction. Contract disbursement ≠ theft. Primary: OpenDoc CP-13-07. Federal/state funds cited are revenues/contributions for the audited period, not “theft.” This note follows the OpenDoc PDF without inventing figures outside the report. Official Comptroller report.

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=4c72091a-c568-4dbe-b514-00ad0ce56c35&nombre=CP-13-07