The Office of the Virgin Islands Inspector General released its Fiscal Year 2016 Audit Plan. Among the various audits planned for 2016, the V. I. Inspector General’s Office hopes to complete six projects still in progress during Fiscal Year 2015, to include: the Inspection of the Alternative Investment Program of the Government Employees Retirement System, the Audit of the Controls over the Department of Education’s School Lunch Program, the Inspection of Contract for Claim of Environmental Damages to St, Croix’s South Shore, the Follow-up on the Handling of Funds Received During the Property Tax Auctions, the Audit of the Public Finance Authority (Joint Project OVIIG/OIG-DOI) and the Audit of the Child Nutrition Programs Claims and Reimbursement Controls. In addition three other projects should be started during the 2016 Fiscal Year to include: the Audit of the Administrative Functions of the Casino Control Commission, the Audit of the Administrative Functions of the Government Employees Retirement System and the Audit of Government-wide Travel. To view the 2016 Audit Plan, Click here.

The Office of the Virgin Islands Inspector General has issued the audit report on the Economic Development Program Administered by the Economic Development Authority. Although the Authority had a positive impact in promoting the growth, development, and diversification of the Territory’s economy, there was need for improvements in its administration of the Economic Development Program. Specifically, we found that the EDA (i) does not have a mechanism in place to require the timely measurement, assessment and reporting of the overall economic and fiscal impact of the Economic Development Program on the Territory’s economy, (ii) does not promote higher levels of participation by certain business types found to have a relatively low economic and fiscal impact on the Territory, (iii) recommended recent changes to the tax benefits law that have created a potential “business welfare” program by providing beneficiaries with 100% benefits for 40 to 50 years, (iv) used rules and regulations that contradicted the Code regarding extension of benefits, (v) in extending benefits, granted full benefits to beneficiaries not eligible to receive them at that level under the law, (vi) granted extension of benefits in numbers and durations in excess of what was allowed under the law, (vii) performed infrequent compliance reviews, (viii) did not effectively ensure that beneficiaries complied with reporting requirements, (ix) did not always promptly inform regulatory agencies of changes in the certificate statuses of beneficiaries, (x) did not consistently adhere to the time requirements for the various phases of the application process, (xi) did not adequately monitor the collection of information needed to process applications for economic development benefits, and (xii) did not always process applications in an organized and systematic manner. To view the report, click here.

The Office of the Virgin Islands Inspector General released its Fiscal Year 2015 Audit Plan. Among the various audits planned for 2015, the V. I. Inspector General’s Office hopes to complete four projects still in progress during Fiscal Year 2014, to include: the Audit of the Economic Development Commission at the VI Economic Development Authority, the Inspection of the Alternative Investment Program of the Government Employees Retirement System, the Audit of the Controls over the Department of Education’s School Lunch Program, and the Audit of the Public Finance Authority (Joint Project OVIIG/OIG-DOI). In addition four other projects should be started during the 2015 Fiscal Year to include: the Audit of the Child Nutrition Programs Claims and Reimbursement Controls, the Audit of the Administrative Functions of the Government Employees Retirement System, the Audit of the Construction of the Charles W. Turnbull Library, and the Audit of Government-wide Travel Practices. To view the 2015 Audit Plan, click here.

The Office of the Virgin Islands Inspector General has issued the inspection report of Real Property Auctions Held by the Office of the Lieutenant Governor. We found validity to the allegations of questionable bidding practices and a lack of compliance with statutory regulations governing real property auctions conducted by the Lieutenant Governor’s Office. Specifically, we found that as a result of procedural changes made in real property auctions by officials at the Lieutenant Governor’s Office; (a) individuals were allowed to manipulate the bidding process, to fraudulently restrict other potential individuals from making legitimate bids on properties offered for auction, (b) questionable and inaccurate bid recording and recordkeeping brought into question several of the reported highest bids for several properties that were sold, (c) properties were not properly researched to ensure that they were eligible for sale, (d) payment time frames established by the Code were not properly adhered to, (e) adequate documentation of the Notice of Attachment process, as required by the Code, was not always maintained to ensure that taxpayers’ constitutional right of due process was followed, and (f) auction costs and fees were not assessed and collected once properties were sold or redeemed. To view the report, click here.

The Office of the Virgin Islands Inspector General has issued the audit report of the Virgin Islands Bureau of Corrections Management Remedial Account (Account). We found that the Account was not established and managed in accordance with provisions of the Virgin Islands Code, Rules and Regulations, and fiscal policies of the Virgin Islands Government (Government). In addition, funds were disbursed from the Account contrary to financial, procurement, and personnel laws, regulations, and policies and procedures of the Government. Finally, funds were utilized for questionable purposes that were not in compliance with the U. S. District Court Order. To view the report, click here.

The Office of the Virgin Islands Inspector General released its Fiscal Year 2014 Audit Plan. Among the various audits planned for 2014, the Inspector General’s Office hopes to complete three projects still in progress during Fiscal Year 2013, to include: the Audit of the Remedial Account for the Virgin Islands Bureau of Corrections, the Audit of the Economic Development Commission at the VI Economic Development Authority, and the Audit of the Controls over the Department of Education’s School Lunch Program. In addition three other projects should be started during the 2014 Fiscal Year to include: the Inspection of Property Tax Auctions at the Office of the Lieutenant Governor, the Inspection of the Alternative Investment Program of the Government Employees Retirement System, and the Audit of the Public Finance Authority (Joint Project OVIIG/OIG-DOI). To view the 2014 Audit Plan, click here.

The Office of the Virgin Islands Inspector General has issued the audit report of the land leasing and land preparation programs of the Department of Agriculture on St. Croix. The audit found that Agriculture did not manage the programs effectively and in accordance with the Code and rules and regulations. Specifically, Agriculture (i) administered the programs without adequate formalized policies and procedures; (ii) improperly executed land lease agreements; (iii) did not adequately monitor the programs to ensure that program recipients were in compliance with land use criteria; (iv) did not effectively collaborate with other appropriate governmental departments to administer and enforce provisions of the Code; (v) was slow and inconsistent in billing for services; (vi) was ineffective in pursuing collection of delinquent accounts; and, (vii) did not maintain organized and readily accessible program files. In addition, Agriculture did not compile and submit, to the President of the Virgin Islands Legislature, annual statistical records of the production and harvest of various crops and livestock as required by the law. To view the report, click here.

The Office of the Virgin Islands Inspector General has issued the audit report of selected loan programs administered by the Economic Development Authority. The audit found that the Authority did not administer loan programs effectively and in accordance with established laws and industry standards. As a result, delinquent loans accounted for 84.5% of the $10.5 million loan portfolio. To view the report, click here.

The Office of the Virgin Islands Inspector General released its Fiscal Year 2013 Audit Plan. Among the various audits planned for 2013, the Inspector General’s Office hopes to complete three projects still in progress during Fiscal Year 2012, to include: the Audit of the Loan Programs at the Virgin Islands Economic Development Authority; the Audit of Land and Equipment Rental Programs at the Department of Agriculture on St. Croix; and the Audit of the Economic Development Commission of the Virgin Islands Economic Development Authority. In addition four other projects should be started during the 2013 Fiscal Year to include: the Audit of the Remedial Account for the Virgin Islands Bureau of Corrections; the Audit of the Controls over the Department of Education’s School Lunch Program; the Audit of Government-wide Travel Practices; and the Audit of the Administrative Function of the Government Employees Retirement System. To view the 2013 Audit Plan, click here.

The Office of the Virgin Islands Inspector General has issued the audit report on the follow-up review of recommendations made in the June 2008 audit of the accounting and collection of dishonored checks. Although, with the introduction of the Tele Check system, Finance made efforts to put in place a mechanism to reduce the number of dishonored checks accepted by the Government, the department’s accounting and collection of dishonored checks remained ineffective. Our follow-up review revealed that Finance could not support as accurate the outstanding amount of $3,261,814 in 1,519 dishonored checks reportedly received by the Government from October 1, 2009 through May 31, 2011. To view the report, click here.