Puerto Rico:

Audit of Grant Funds Provided to Three Major Political Parties

HRD-92-29: Published: Jan 15, 1992. Publicly Released: Jan 15, 1992.

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Pursuant to a legislative requirement, GAO audited the $1.5 million in grant funds that Congress provided to the three major Puerto Rican political parties, the Popular Democratic Party, the New Progressive Party, and the Puerto Rican Independence Party, for their participation in the legislative process involving Puerto Rico's political status.

GAO found that: (1) by June 1991, the three parties had expended about 82 percent of their obligated grant funds; (2) the three parties generally used expended funds for authorized activities as specified in the legislation and grant agreement; (3) the Popular Democratic Party and the New Progressive Party spent most of their funds on consulting services, while the Puerto Rican Independence Party spent its funds on research products; (4) although some expenditures paid differed from those payments that the Executive Office of the President, Office of Administration (EOPOA) approved, they were allowable costs; (5) the parties paid for some unallowable entertainment expenses; (6) although the entertainment expenses did not involve significant amounts, EOPOA took actions to recover those funds; (7) the Popular Democratic Party made partial payments on invoices to create a reserve for possible disallowed costs but did not deposit the funds in an interest-bearing account, as required; and (8) the New Progressive Party paid some vendors more than EOPOA authorized and made payments to other vendors on unauthorized invoices.

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