The Financial Oversight and Management Board for Puerto Rico today announced that it selected UHY Advisors Inc. to review services performed by BDO Puerto Rico since 2016 for the Commonwealth of Puerto Rico and several instrumentalities.
UHY Advisors will initially evaluate BDO’s audits of the financial statements of the five government entities BDO audited. Those entities are the Puerto Rico Electric Power Authority (PREPA), the Puerto Rico Highway and Transportation Authority (HTA), the Teachers Retirement System (TRS), the Puerto Rico Automobile Accident Compensation Administration (ACAA), and Puerto Rico’s public broadcasting corporation (WIPR). An evaluation of BDO’s consulting services is expected to follow.
The purpose of the engagement is to determine whether the integrity of any of the services provided by BDO was affected by alleged fraudulent activities of the firm’s former managing partner who last summer was charged by federal authorities. The focus of the engagement will be of a financial nature; legal actions or remedies are not within the scope of the investigation and are the responsibility of law enforcement authorities.
“Accurate financial reports are fundamental to Puerto Rico’s fiscal and economic recovery,” said the Oversight Board’s Executive Director Natalie Jaresko. “Any doubt about the accuracy of financial reports needs to be investigated to ensure that accounting remains reliable and transparent. PROMESA has given the Oversight Board a mandate to help Puerto Rico to achieve fiscal responsibility, and financial reports are a big part of that goal.”
UHY Advisors will report to the Oversight Board and its Executive Director, and findings will be made public after the review is concluded.
About the Oversight Board
The Financial Oversight and Management Board for Puerto Rico was created under the bipartisan Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) of 2016. The purpose of the Oversight Board is to provide a method for Puerto Rico to achieve fiscal responsibility and access to the capital markets.