Puerto Rico Fails to Provide Fiscal 2014 Report by Deadlineby
Commonwealth's fiscal 2014 audited finances 181 days overdue
Puerto Rico cannot estimate when it will file report
Puerto Rico failed to submit audited financial statements for fiscal 2014 by a self-imposed Oct. 31 deadline, according to a Municipal Securities Rulemaking Board filing.
The commonwealth’s annual report for the fiscal year ended June 30, 2014 was 181 days late, the longest that Puerto Rico has been overdue on its yearly audited statements since at least 2000, according to Daniel Hanson, an analyst at Height Securities, a Washington-based broker dealer. The commonwealth is tardy because certain agencies have yet to submit reports and an independent auditor is conducting additional procedures given Puerto Rico’s liquidity risk, according to the filing posted late Friday on the MSRB website known as EMMA.
“The commonwealth cannot provide an estimate at this time of when it will be able to complete and file its audited financial statements,” according to the filing.
U.S. Senators Orrin Hatch, a Republican from Utah, and Lisa Murkowski, a Republican from Alaska, told commonwealth officials during recent committee hearings on Puerto Rico’s fiscal troubles that it must improve its financial disclosures before the federal government can help the island. The commonwealth’s economy has struggled to grow since 2006. It’s seeking to reduce its $73 billion debt load by negotiating with investors.
A Securities and Exchange Commission rule requires municipal-bond issuers to file audited annual reports within 305 days after the end of a fiscal year, according to Hanson. Puerto Rico is 181 days past that filing period.