Contrôleur : AFICA a émis $5.8 billion en obligations ; constats sur contrats (CP-06-05)

On September 16, 2005 the Office of the Comptroller published Audit Report CP-06-05 on the Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority (AFICA, Unit 3086). Audit period: Jun. 1, 1989–Jun. 30, 2004. AFICA, created by Act 121 of 1977 and affiliated with the Government Development Bank (GDB), issues bonds exempt from state and federal taxes to finance industrial, tourist, educational, medical and environmental projects. Per audited financial statements, in fiscal years 2000-01 through 2003-04 it generated operating revenues of $10,260,978, expenses of $4,406,343 and an accumulated surplus of $5,854,635 as of June 30, 2004.

From May 1, 1978 to April 16, 2003 AFICA completed 216 bond issues totaling $5,844,304,855; as of June 30, 2004 the outstanding balance was $2,152,639,914. Those issues, the report clarifies, do not involve disbursement of public funds nor obligate the Commonwealth to pay. The Comptroller’s opinion: operations were conducted substantially in accordance with law and regulations, except for findings 1 and 2 classified as principal (3 and 4 secondary).

Finding 1: Trust Agreements and contracts not filed or filed late with the Office of the Comptroller; contracts with retroactive effect; debt-recognition resolutions to pay invoices without a written contract. Of 23 contracts and 15 amendments totaling $153,543,841 (FY 98–04), 13 contracts (57%) for $139,038,518 were sent with delays of 4 to 105 days; four contracts for $5,195,672 had retroactive effect of 109 to 296 days. Finding 2: inadequate regulations for approving financings and other deficiencies in those operations. Findings 3–4: bank reconciliations and Board minutes. GDB provides administrative services to AFICA and collects 50 percent of issuance fees. Finding ≠ charge or conviction. Disbursement ≠ theft. Primary: OpenDoc CP-06-05. Cousin: none. Topic economy.

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=b74aaa0e-b55c-4613-af06-76a9197f0702&nombre=CP-06-05