Monday, September 24, 2018

Puerto Rico fiscal board requiring more monthly public reporting

By on July 10, 2018

SAN JUAN – The government of Puerto Rico has missed three important deadlines in providing information about its finances as required by the certified fiscal plan for Puerto Rico, the island’s Financial Oversight and Management Board revealed Tuesday.

The information is contained in a letter sent by the fiscal board to Gerardo Portela, director of Puerto Rico’s Fiscal Agency and Financial Advisory Authority (AAFAF by its Spanish acronym).

While the government complied with a Treasury Single Account (TSA) liquidity report due April 30 as well as a component unit liquidity report May 31, officials have missed deadlines to submit a “General Fund Budget to Actual” report or a PayGo balances report, both of which were due May 31.

The government also missed a June 30 deadline to turn in a report on public employee payroll, headcount and attendance.

The board said it acknowledges the “substantial work and effort” put into the TSA and Component Unit Liquidity reports. “However, on May 31, 2018, the Oversight Board received a letter requesting an extension to the General Fund Budget to Actual Report and to the PayGo Balances Report. The Oversight Board did not grant the request for an extension,” the letter said.

The board said it awaits the publication of the reports and expects the remaining deadlines to be met.

“If the outstanding reports are not made public by July 27, 2018, the latest monthly report received by the Oversight Board will be made available to the public,” the letter adds.

In reaction to the board’s communication, AAFAF’s Portela requested extensions, writing the following to board Executive Director Natalie Jaresko:

As presented in the Fiscal Plan submitted by the Government of Puerto Rico (“Government”) on April 5, 2018, a timeline was established to publish eight monthly reports to improve fiscal governance, accountability and internal controls. This timeline was structured by taking into account the necessary steps to be taken and implemented within the Government in order to produce accurate and reliable data.

Amongst the various reports specified therein, the Government had set forth July 31, 2018 and October 31, 2018 as the dates to publish the initial PayGo Balance Report (“PayGo Report”) and the General Fund Budget to Actual Report (“General Fund Report”) (collectively, the “Reports”), respectively. However, the Fiscal Plan developed and certified on April 19, 2018 by the Financial Oversight and Management Board for Puerto Rico (“Board”) set forth May 31, 2018 as the publication date of the Reports, while maintaining consistency with the other report publication dates established by the Government

The Government is on track to meet the report publication dates in which it is aligned with the Board. However, additional time is required to complete the Reports. Based on the foregoing, a request is made to the Board to extend the publication dates of the Reports to July 31, 2018 for the PayGo Report and October 31, 2018 for the General Fund Report.

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