This report is a summary of the analysis and control carried out by the internal and external audit teams on the processes of the Municipality of Concordia in order to implement corrections and improvements in the administration that began in 2024.
The objective of the report was to conduct an evaluation of the key areas of financial and operational management of the Municipality of Concordia as of December 7, 2023, including cash and cash equivalents, debt, procurement processes, personnel expenses, and fixed assets.
CASH AND CASH EQUIVALENTS
Financial investments, although they generated returns, were not executed in accordance with key regulations.
High-risk instruments were used that exceeded regulatory powers.
There were deficiencies in internal control, accounting records, and accountability.
DEBT
The restructuring of municipal debt increased the liabilities to USD 6.2 million, with an outstanding balance of USD 5.2 million.
There were delays in the execution of funds allocated to public works and a lack of accountability documentation before the Court of Accounts.
Some planned works were not carried out.
PROCUREMENT PROCESSES
Lack of integrated annual planning for contracting.
Abuse of direct contracting (85% of the total) and irregular use of regulatory exceptions were evidenced.
Errors in records, lack of complete documentation, and weaknesses in internal controls.
PERSONNEL EXPENSES
Sustained increase in hiring with unclear entry criteria.
Absence of systematic evaluations of training, suitability, or strategic needs.
FIXED ASSETS
Inadequate registration and control of municipal assets.
Lack of clear policies regarding maintenance, use, and insurance monitoring.
This report, with the details of each of the evaluated areas, will be available from noon this Saturday on the Open Data Portal of the Municipality of Concordia: https://datos.concordia.gob.
The objective of the report was to conduct an evaluation of the key areas of financial and operational management of the Municipality of Concordia as of December 7, 2023, including cash and cash equivalents, debt, procurement processes, personnel expenses, and fixed assets.
CASH AND CASH EQUIVALENTS
Financial investments, although they generated returns, were not executed in accordance with key regulations.
High-risk instruments were used that exceeded regulatory powers.
There were deficiencies in internal control, accounting records, and accountability.
DEBT
The restructuring of municipal debt increased the liabilities to USD 6.2 million, with an outstanding balance of USD 5.2 million.
There were delays in the execution of funds allocated to public works and a lack of accountability documentation before the Court of Accounts.
Some planned works were not carried out.
PROCUREMENT PROCESSES
Lack of integrated annual planning for contracting.
Abuse of direct contracting (85% of the total) and irregular use of regulatory exceptions were evidenced.
Errors in records, lack of complete documentation, and weaknesses in internal controls.
PERSONNEL EXPENSES
Sustained increase in hiring with unclear entry criteria.
Absence of systematic evaluations of training, suitability, or strategic needs.
FIXED ASSETS
Inadequate registration and control of municipal assets.
Lack of clear policies regarding maintenance, use, and insurance monitoring.
This report, with the details of each of the evaluated areas, will be available from noon this Saturday on the Open Data Portal of the Municipality of Concordia: https://datos.concordia.gob.