P.R. Laws tit. 21, § 4311
At the closing of each fiscal year, the appropriations authorized for the corresponding fiscal year shall be closed in the municipal books in order to determine and evaluate the municipal operations during said year and determine their financial situation.
(a) If there is a deficit in the municipal operations when liquidating any fiscal year, the municipality shall be bound to include the resources that are necessary and sufficient to answer for the credit corresponding to the previous fiscal year. Said deficit shall be identified as a regular deficit account.
(b) Provide that the operating deficit accrued by the municipality as shown in the financial statements audited as of June 30, 2005, at such a date for the public debt shall be amortized within not more than forty (40) years. The amount equivalent to the annual amortization shall be consigned as an expense account in the annual budgets of the municipalities with accrued deficits into a separate account which shall be provided in the uniform accounting scheme.
(c) Each special fund of a non-budgetary nature shall be liquidated separately. Those appropriations for no specific fiscal year shall not be subject to closing at the end of the fiscal year.
(d) The mayor shall render to the Commissioner whatever reports he/she deems necessary within the term provided by him/her, on the result of the fiscal operations during the fiscal year, pursuant to the uniform computerized accounting system designed for the municipalities. He/she shall also prepare and submit all such financial reports that are required periodically or eventually by the Legislature [of Puerto Rico], the Governor of Puerto Rico, the Commissioner or any official with legal or regulatory authority to require said reports.
History —Aug. 30, 1991, No. 81, § 7.011; Oct. 29, 1992, No. 84, § 34; Apr. 13, 1995, No. 36, § 28; Aug. 26, 2005, No. 105, § 1.