About $2.2 million in federal grant funding is still being withheld from the territory as the Law Enforcement Planning Commission works to satisfy the U.S. Interior Department’s Inspector General’s Office, LEPC Director Victor Browne told senators during budget hearings Thursday. A 2010 Inspector General audit found a lack of financial controls and a lack of proper documentation of the millions of dollars of federal grant funds under LEPC control, Browne recalled. (See Related Links below)
The audit found those deficiencies enabled former government aide Alric Simmonds to embezzle at least $1.2 million from a government bank account. Simmonds pleaded guilty and in 2008 was sentenced to eight years in prison.
Meanwhile, six years later, the territory is still working with the U.S. Department of Justice to clear up its remaining concerns and the territory cannot use about $2.2 million for the time being, Browne said.
The audit originally cited 25 areas of concern. Of those, seven remain outstanding, Browne told Sen. Clifford Graham. In most cases, insufficient documentation of expenses is the problem, according to documents supplied by Browne.
The LEPC is designated by the governor of the Virgin Islands as the State Administering Agency, which means it is the liaison with the U.S. Department of Justice and the Office of Justice Programs.
The commission currently manages the Justice Assistance Grant, Juvenile Justice and Delinquency Prevention Grants, Victims of Crime Assistance Grant Violence Against Women Grant, Residential Substance Abuse Treatment Grant and enforcement of the underage drinking laws. The Justice Assistance Grant and Violence Against Women Grant comprise the bulk of the withheld funds.
Graham asked if any funding had been lost altogether.
Browne said a $41,000 grant to the Bureau of Corrections expired "due to some screw up in their system." But overall, most of the funds were still available, but he said a lack of qualifying applications to use the funding is a barrier.
Getting agencies applying for the funds to submit proper documentation, then working with the Office of the Inspector General to verify they received it and to decide if it is sufficient is taking a great deal of time, he said.
"Can you tell me when these grant monies will be available?" Graham asked.
"I hate to disappoint you but I can’t give you anything meaningful," Browne said.
The LEPC was there to present its budget request of $587,000, with $316,000 of that for wages and salaries and another $129,000 for benefits and Social Security and Medicare taxes. Another $62,000 is budgeted for rent and $65,000 for utilities.
Career and Technical Education Board Chairman Daniel McIntosh told the Finance Committee it was still trying to re-establish its diesel mechanics program. The award winning program was shut down on St. Croix in 2006 when the Education Department promoted the instructor and was unable to replace him. (See Related Links Below) Getting the program going in both districts was a major goal last year and the year before. It is a goal for the upcoming year too.
The board is requesting a Fiscal Year 2015 appropriation of $774,000 from the General Fund, with none of it budgeted for wages or salaries for the volunteer board. McIntosh presented the board’s budget request of $771,000 – which is just more than 10 percent more than the recommended budget.
No votes were taken at the information gathering budget hearing.
