Comptroller: partially adverse opinion on Tourism over chartered flights ($4.13 million)

On February 18, 2016, the Office of the Comptroller published Audit Report CP-16-05 on the Puerto Rico Tourism Company (Unit 3155), focused on the Air Incentive Program for Chartered Flights to Rafael Hernández Airport in Aguadilla (Act 67-2008). Opinion: partially adverse as to that program (findings 1 and 2); the rest of the operations examined were substantially in conformity except Finding 3.

On January 20, 2010 the Company signed an incentive contract with a nonprofit corporation (registered March 12, 2009) for $1,551,878 plus $200,000 in Porta del Sol marketing. The Board later authorized an additional $3,917,000 from Fund 30; with amendments the revised Contract amount reached about $5,946,398 (cited ceiling $5,946,472).

From January 17 to August 24, 2011 the Company made 12 disbursements to the Corporation totaling $4,130,187 (18 invoices), while the Corporation operated 21 chartered flights to Europe between April and August 2011. The Report notes failure to meet the six consecutive months of operation requirement and possible Penal Code violations by Company officials and the Corporation’s executive director — an audit finding ≠ formal charge or conviction in this note.

The Report is the seventh in the Tourism series; the audited period runs from July 1, 2007 to June 30, 2012. The Comptroller stresses that the Program did not fulfill the purpose for which it was created under Act 67-2008.

Also noted: $343,291 invoiced but not disbursed after pre-audit adjustments. The Special Fund under Act 67-2008 was $2,000,000; the Economic Development Bank financed $1,358,166 and municipalities contributed or lent additional amounts documented in the same report. Obligated or authorized in a contract does not equal disbursement or theft. Primary: OpenDoc CP-16-05. Cousin: none.