Audit of VI Legislature: $6.9 million lost to 'highly questionable practices ...

ST. THOMAS - A long-anticipated joint federal and local audit of the V.I. Legislature found "highly questionable practices" involving the management of public funds that resulted in more than $6.9 million of lost revenues, unnecessary expenses and unsupported costs.

The report was published by the V.I. Inspector General's Office and the Office of the Inspector General at the U.S. Department of the Interior.

"We attribute the serious deficiencies to an absence of formal policy and procedures as well as weak internal controls. The unregulated administration of public funds has led to a culture with almost no accountability and transparency, especially in areas such as the improper use of allotted funds, arbitrary procurement of goods and services, and inadequately secured sensitive equipment," states the report.

The audit's major findings include:

- Payment of cash advances to senators for travel with no verification that the travel actually occurred.

- Awarding of bonuses to employees without written standards or justification of such awards.

- Selection, approval and payment of contracts without competition and internal controls, leading to overpayment and no documentation the work had been performed.

- No reporting to the IRS, leading to underpayment of tax receipts to the V.I. government.

- No documentation for sensitive equipment, potentially leading to the equipment being misused, lost or stolen.

All of the Legislature's travel, procurement and payroll policies come from a single, undated, unsigned two-and-a-half page document, according to the audit. The document does not contain specific rules and regulations, however, and is widely ignored by senators and employees, the audit said.

The auditors reviewed documents from the 26th, 27th and 28th legislatures, although most of the findings focused on the 28th Legislature.

Senators in the 28th Legislature were Craig Barshinger, Adlah Donastorg Jr., Carlton Dowe, Louis Hill, Neville James, Wayne James, Shawn-Michael Malone, Terrence Nelson, Usie Richards, Nereida Rivera-O'Reilly, Sammuel Sanes, Patrick Simeon Sprauve, Michael Thurland, Celestino White Sr. and Alvin Williams Jr.

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Audit of VI Legislature: $6.9 million lost to 'highly questionable practices ...

Payment of cash advances to senators for travel with no verification that the travel actually occurred. - Awarding of bonuses to employees without written standards or justification of such awards. - Selection, approval and payment of contracts without



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