Ten days after defending procurement practices amid questions from the V.I. Public Services Commission, Water and Power Authority executives faced scrutiny from the utility’s board members over a federally mandated contract for auditing services.
WAPA Chief Financial Officer Lorraine Kelly presented the contract for board approval during a regular meeting Thursday, proposing that the utility engage the California-based temp agency Robert Half International for two years at up to $2.77 million and noting that the accountants’ work is “one hundred percent reimbursable” by the Federal Emergency Management Agency. Kelly said the contractors will help WAPA complete single audits for fiscal years 2021-2026.
“The prior audit had several items detailed as noncompliant,” she said. “The support provided under this contract will assist in mitigating certain of the issues raised, and by engaging additional support, we will achieve completing the audits while the regular monthly accounting activities are ongoing.”
Board members appreciated the need for auditing services but had several questions about the contractor — and whether it was licensed to do business in the U.S. Virgin Islands.
“The challenge, I believe, is with — from what I understand — if someone is doing business in the Virgin Islands, whether they’re on site or off site, they do need a Virgin Islands business license,” chair Maurice Muia said. “The board is actually going through this process with a vendor now, and they had to go through the process of getting a VI business license. So I, with my colleagues’ support, I’m willing to have a conditional approval with that being the amendment — for them to make sure they go through the process of getting a VI business license and going through a registered agent in the Virgin Islands to do so.”
WAPA Chief Executive Karl Knight said the utility does its due diligence before inking any agreements.
“Our procurement language says that you have to comply with the law. Our contract language says you have to comply with the law. And we do a check before we sign off on contracts to make sure that you have complied with all the requirements of the law,” he said at one point. “And again, we structure it in a way that puts the onus — that if we miss something — we put the onus back on the entity to check with BIR, check with DLCA, and make sure you’re meeting the requirements of the law.”
After half an hour of questions from board members, Knight said the “crux of the conversation” is that the board wants a final review of contract documents.
“What I’m saying is: the board has given me authorization to enter into that contract document. Everything that goes into that contract document is what’s before — I wouldn’t be before the board if I could just execute on my own,” he said. “I’m asking permission within these parameters — can I go ahead and negotiate and execute an agreement?”
The board ultimately approved the agreement, with Muia abstaining and vice chair Hubert Turnbull voting against it.
