P.R. Laws tit. 3, § 9250
(a) Periodic revision.— Within thirty (30) days after the last day of each quarter of a fiscal year, or less or more often, as established by the Board, the Department of the Treasury and the supervised entity, in the case of the Commonwealth, or any entity receiving funds from the General Fund, or supervised entity, in the case of public corporations to which this chapter applies, shall submit reports on revenues, expenditures, and cash flow as required by the Board, which shall include, but shall not be limited to: earned and projected income; a report of checks issued and outstanding, expense incurred as of the date of the report, expenses incurred during the quarter, expense projection for the following months through the end of the fiscal year, outstanding accounts payable as of the beginning of the quarter, accounts paid during the quarter, accounts payable ending balance; total disbursements during the preceding fiscal quarter or any other period required by the Board and a comparison of such revenues and expenses and cash flow with the projections or the latest budget approved for such items. If the Board so requires, said reports shall also include the balance sheet for supervised entities. The Board shall review the reports submitted and evaluate whether the supervised entity has complied with the budget endorsed by the Board using, to the extent possible, generally accepted accounting principles. In addition:
(1) In the case of supervised entities that receive funds from the General Fund, the Secretary of the Treasury shall adjust the revenues projection for the fiscal year by the difference between the refund projection made at the beginning of the fiscal year and the refund projection revised at the time each report is submitted, chargeable to the Budget Control Reserve.
(2) In the case of supervised entities that receive funds from the General Fund, the Board shall evaluate how (1) reported income compare with the income estimate used for purposes of drawing up the Budget of the Commonwealth, and (2) expenses incurred as of the date of the report in addition to expense projections for the remainder of the fiscal year compare with the amount of budget available.
(3) In the case of a public corporation, the Board shall evaluate how (1) the (cash) revenues of the public corporation compare with the income estimate used for purposes of drawing up its budget, and (2) expenses incurred as of the date of the report and the projection for the remainder of the fiscal year.
(b) Release of the budget control reserve.—
(1) The following shall apply in the case of a supervised entity:
(A) Once the report or periodic reports covering the first quarter of the fiscal year have been reviewed and evaluated, the OMB may release up to fifteen percent (15%) of the Budget Control Reserve if it has been concluded that: (i) the (cash) revenues received from the Commonwealth through the end of the report period in conjunction with the projection revised through the end of the fiscal year are not less than the income estimate used to draw up the Budget of the Commonwealth, and (ii) expenses at the end of the report period and the projection of such expenses through the end of the fiscal year do not exceed the expenditure estimate included in the budget for said period (compliance with income and expenditure estimates included in the budget from the beginning of the fiscal year to the end of the report period shall be known as “Compliance with the Budget”).
(B) Once the report or periodic reports covering the second quarter of the fiscal year have been reviewed and evaluated, the OMB may release up to an additional fifteen percent (15%) of the Budget Control Reserve that has not been released if the Board concludes that the Commonwealth is in Compliance with the Budget through the end of the second quarter of the fiscal year;
(C) Once the report or periodic reports covering the third quarter of the fiscal year have been reviewed and evaluated, the OMB may release up to an additional twenty percent (20%) of the Budget Control Reserve that has not been released, if the Board concludes that it is in Compliance with the Budget through the end of the third quarter of the fiscal year; and
(D) On or before May 15th of each year, the OMB may release the remaining portion of the Budget Control Reserve corresponding to previous periods and that has not been released, if the Board concludes that it is in Compliance with the Budget as projected through the end of the fiscal year.
(2) If it is determined, to the extent possible, that a supervised entity is reporting income below the budget estimate for said period or that expenses are higher than those budgeted, the Board shall (A) issue a notice, (B) notify such fact to the Governor, the Legislative Assembly, and the OMB, (C) may make any recommendations it deems appropriate to reduce expenditures or increase immediate revenues after taking the Budget Control Reserve into account to ensure compliance with the approved budget and the Fiscal and Economic Growth Plan.
(3) The supervised entity shall, as applicable, within twenty (20) days after receiving a notice under this section, take the appropriate corrective action to ensure compliance with the approved budget and the Fiscal and Economic Growth Plan.
(c) Compliance with the approved budget.—
(1) If the Board concludes that the supervised entity has complied with the budget certified by the Board, it shall thus certify it.
(2) If the Board determines that a supervised entity is reporting cash basis below the budget estimate for said period or that expenses are higher than those budgeted, the Board (A) shall issue a notice, (B) notify such fact to the Governor, the Legislative Assembly, and the OMB, (C) may make any recommendations it deems appropriate to reduce expenditures or increase immediate revenues after considering the Budget Control Reserve to ensure compliance with the approved budget and the Fiscal and Economic Growth Plan.
(3) The supervised entity shall, as applicable, within twenty (20) days after receiving a notice under this section, take the appropriate corrective action to ensure compliance with the approved budget and the Fiscal and Economic Growth Plan.
(4) If the notice of noncompliance issued under this section has not been corrected to the satisfaction of the Board (1) within forty-five (45) days after the issue thereof, if the notice of noncompliance was issued on or before February 1st of the fiscal year, or (2) within thirty (30) days after the issue thereof, if the notice of noncompliance was issued after February 1st of the fiscal year, the Board shall issue a preliminary finding of noncompliance to said supervised entity.
(5) If at the end of any fiscal year, a supervised entity has failed to correct a preliminary finding of noncompliance issued under this section, the Board shall issue a finding of noncompliance to said supervised entity.
(6) The Board may withdraw a notice of noncompliance, a preliminary finding of noncompliance, and a finding of noncompliance issued to a supervised entity at any time, if such supervised entity has corrected the same to the satisfaction of the Board.
(d) Reconsideration of a notice issued by the Board.— A supervised entity to which the Board has issued a notice under this section may, within fifteen (15) days after receiving such notice, file a request for reconsideration of a determination of the Board following the procedures established by the Board. The Board shall have fifteen (15) days to consider the request for reconsideration filed by the supervised entity. If the Board denies a request for reconsideration, said supervised entity shall take the appropriate corrective action to ensure compliance with the approved budget and the Fiscal and Economic Growth Plan.
(e) Consequences for failing to file a periodic report.— Failure to file a periodic report required under subsection (a) of this section shall prompt a notice by the Board to the applicable supervised entity. If the supervised entity fails to correct said noncompliance within forty-five (45) days after receiving notice by filing the corresponding periodic report, the Board shall issue a notice of noncompliance to said supervised entity.
(f) Compliance with non-budgetary measures.— In the case of non-budgetary measures included in the Fiscal and Economic Growth Plan that must be complied with on or before a certain date, the Board shall evaluate, within thirty (30) days after such date, whether said non-budgetary measures have been implemented. If the Board determines that a supervised entity has failed to comply with a non-budgetary measure, the Board shall (1) issue a notice of noncompliance, and (2) may make recommendations of immediate action to ensure compliance with said non-budgetary measure. The supervised entity shall take the corresponding corrective action to correct said notice of noncompliance. If at the end of the fiscal year or any other longer period as determined by the Board, said notice of noncompliance has not been corrected to the satisfaction of the Board, the Board shall issue a finding of noncompliance unless it determines that the (i) supervised entity has taken reasonable measures (in the case of non-budgetary measures of transactional nature, has made reasonable efforts) to comply with the non-budgetary measure, (ii) noncompliance is due to reasons not attributable to the supervised entity, or (iii) such noncompliance has no material adverse effect to comply with the Plan.
History —Dec. 8, 2015, No. 208, § 210.