The Office of the Virgin Islands Inspector General has issued the audit report on the surprise cash count at the Eldra Schulterbrandt Residential Facility. The objectives of the surprise cash count were to determine whether the Department of Health adequately accounted for and managed cash and other cash equivalents received on behalf of residents and whether residents’ bank accounts were adequately managed from 2022 to 2025.
We found inadequate controls and documentation for $2,652 in residents’ cash and cash equivalents, including $767 owed to five former residents. We also identified at least $17,005 in unexplained withdrawals from two residents’ bank accounts, with no documented justification or reimbursement, raising concerns about potential misuse or fraudulent activity.
We attribute these conditions to the Health officials’ lack of oversight and written internal controls. There were no reporting requirements or reports to Health’s upper-level management regarding the accounting for residents’ funds used and managed by the facility.
As a result, residents’ funds received and spent were not properly accounted for. One year passed before Health officials and residents regained access to cash and bank accounts. Additionally, there was an increased risk of fraud in residents’ bank accounts managed by Health.
We made several recommendations to address the causes of the findings in this report. Our recommendations covered accounting for and securing funds, adequate supervisory controls, reconciliation, and financial reporting. We also recommended consulting with relevant agencies to ensure that reimbursement for unauthorized withdrawals complies with approved government accounting standards. To view the report, click here.