_.jpg "V.I. Inspector General Steven van Beverhoudt testifying at a previous senate hearing (file photo).")
While the Legislature has thus far refused to name names after a scathing audit found unreimbursed cash advances to senators and staff and other financial mismanagement, federal and local investigations continue, V.I. Inspector General Steven van Beverhoudt told senators during budget hearings Tuesday.
"As I am sure you are aware, we are actively participating with the federal government in investigating various aspects of the joint U.S. Office of the Inspector General-Office of the V.I. Inspector General audit of the Legislature," Beverhoudt said during his testimony.
No details were forthcoming, as Beverhoudt said he "cannot discuss them."
That audit, released in December 2011, showed several of the most expensive improperly documented cash advances were to a senator who traveled to Denmark and Italy in 2009 and 2010, purportedly doing historical research in Denmark. Former Sen. Wayne James traveled to those countries during the times in question and issued statements at the time about historical research he said he was doing in Denmark.
According to the report, a senator, presumably James, received 12 cash advance checks totaling $93,914 in 2009 as payment to the Danish National Archives for research, scanning, reproduction and translation of historic documents. The senator never submitted any receipts or invoices, and never provided copies of the documents: one of the 12 checks was for $27,636. When asked about the advances, James said some of the cash is in safe deposit boxes outside of the territory.
In other investigative actions, the trial for the former officials at the Roy Schneider Medical Center took a significant amount of resources in Fiscal Year 2011 and it is scheduled to be retried in October 2012, he said. Former Schneider Regional Medical Center officials Rodney Miller Sr., Amos Carty Jr. and Peter Najawicz are accused of conspiring with one another to defraud the hospital of millions of dollars, which they allegedly siphoned off from the hospital’s bank accounts for their own private use.
Over the past year, the Office of the Inspector General also completed an audit of collections at Agriculture on St. Croix and a follow-up on the status of collections and controls over dishonored checks.
Audits nearing completion include:
– the V.I. Economic Development Authority loan program administration;
– land and equipment rental at Agriculture on St. Croix;
– and a performance audit of the V.I. Economic Development Authority’s EDC programs.
Audits issued in Fiscal 2011 and so far in 2012 have "identified potential savings or funds that could be put to better use totaling $34.4 million," Beverhoudt said.
The budget, already strained, is being cut again this year, which will limit what the office can do, he said.
"Locally we will have to significantly limit our audit scope and try to concentrate on areas with the greatest impact," he said."The area of audit follow-up continues to suffer due to the limited resources available to devote to this activity. We basically engage in follow-up activities as filler activities between new audit assignments."
The 2013 budget recommendation is $1.3 million, roughly $165,000 or 11 percent less than in its 2012 budget. It makes three consecutive years of declines and is 25.4 percent less than the FY 2010 budget. The budget pays salaries and benefits for 14 positions, which is one less than in 2012.
Wages and salaries account for $789,000 of that, and fringe benefits another $269,000. Supplies account for $43,000, utilities another $45,000, and other services and charges $147,000.
No votes were taken at the information gathering hearing. Present were Sens. Carlton "Ital" Dowe, Ronald Russell, Shawn-Michael Malone, Craig Barshinger, Patrick Sprauve, Nereida "Nellie" Rivera-O’Reilly and Terrence "Positive" Nelson.
