Fiscal Oversight Board seeks details on Alliance Schools program
The board cited a projected $13 million deficit this fiscal year and nearly $44 million in proposed contract amendments not submitted for review.
File photoThe short version
- Microjuris al Día reported the Fiscal Oversight Board requested information from the Jennifer González Colón administration on the operation of the Alliance Schools program and plans for expansion
- The board identified a projected deficit of $13,093,924 for the current fiscal year and nearly $44 million in proposed contract amendments not submitted for its authorization according to Microjuris al Día
- Microjuris al Día said the board gave the government until Nov. 30 to provide details on fiscal reviews, approval circumstances despite funding shortfalls and projected additional schools
- The request follows a May report by the Office of the Inspector General that identified significant deficiencies in oversight of the program Microjuris al Día reported
Request for information
The Fiscal Oversight Board has requested information from the Puerto Rico government regarding the Alliance Schools program after detecting a multimillion-dollar deficit in its financing. Microjuris al Día reported that the board asked the administration of Gov. Jennifer González Colón about the current operation of the program, known as EPA in English, and its interest in continuing to expand it.
According to the same report, there are currently 21 such schools, which are public but operated by private entities. Five more were added this fiscal year and additional ones are being sought. The board's letter signed by executive director Robert F. Mujica Jr. highlighted problems with fund management, including nearly $44 million in proposed contract amendments that were not submitted to the board for authorization.
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Projected deficit and additional contracts
Microjuris al Día reported that the Department of Education has already anticipated a deficit this fiscal year of $13,093,924 for expenses at those schools. The Office of Management and Budget is supposed to coordinate how to address this deficiency of public funds. The letter also asks for details on additional contracts, the number of additional schools projected to open and the source of financing for the project.
The five-page letter, addressed to the director of the Office of Management and Budget, Orlando Rivera Berríos, and Education Secretary Eliezer Ramos, gives the government until Nov. 30 to provide the requested information. The board seeks details on the fiscal review of contractual commitments, the circumstances under which those commitments were approved despite the later-revealed funding deficiency, and the controls applied before requesting or authorizing additional Alliance Schools.
Prior oversight findings
The request comes five months after the Office of the Inspector General identified significant deficiencies in the fiscal oversight of these schools. Microjuris al Día reported that those included issues with filing annual reports, lack of updates to the Department of Education portal, omissions in pre-opening visits and deficiencies in the proposal evaluation process.
The inspector general's report, directed by Ivelisse Torres Rivera, also found problems in document management, absence of dates and inadequate follow-up. It noted that $35 million was not disbursed due to factors including implementation timelines and administrative processes of the operating entities. The report stated that the deficiencies represent significant financial risks and limit transparency, accountability and effectiveness in the administration of public funds.
Where the sources differ
The sources agree on the existence of a multimillion-dollar deficit and oversight problems with the Alliance Schools program. Microjuris al Día focuses exclusively on the Fiscal Oversight Board's specific information request to the government about the program, the $13 million deficit, the $43.7 million in contract amendments and the prior inspector general findings of deficiencies. Metro Puerto Rico reports on a separate quarterly report by the same board that warns of economic stagnation and long-term fiscal risks but does not mention the Alliance Schools program at all.
What the reports do not say
The reports do not state how the government plans to address the $13 million deficit or the $35 million in undisbursed funds. They do not specify the exact number of additional Alliance Schools planned, the operators involved, or the sources of future financing. The sources also do not indicate whether the board will require review of contracts below its normal threshold or what consequences may follow if the Nov. 30 deadline is not met.
Sources
Every link below was opened and checked when this story was published. Official means a government body, agency or the organization itself; Reporting means a news outlet.
- Official Escuelas Alianza en la mira de la Junta de Supervisión Fiscal
- Official Escuelas Alianza en la mira de la Junta de Supervisión Fiscal
- Reporting Escuelas Alianza en la mira de la Junta de Supervisión Fiscal
- Reporting Junta de Supervisión Fiscal advierte estancamiento de la economía de Puerto Rico y riesgos fiscales
How we checked this
Microjuris al Día reported the details of the Fiscal Oversight Board's letter and the prior findings by the Office of the Inspector General. Metro Puerto Rico covered a different quarterly report from the board on the broader economy and fiscal risks. All specific figures and requests about the Alliance Schools program rest on the Microjuris al Día account.
Compiled by the PuertoRico.com News Desk from the reports and statements listed above, and checked against them before publishing. It does not include original interviews. Spot an error? Email support@puertorico.com with a link to this story.