The Virgin Islands Economic Development Authority governing board convened Tuesday morning to review the findings of an independent financial audit for fiscal year 2024, which concluded on Sept. 30, 2024.
The audit was conducted by Bert Smith and Company, a Washington, D.C. based professional services firm with deep ties to the Virgin Islands. Managing Partner George Willie and Senior Auditor Keisha Bridgewater joined the meeting on behalf of BSC to present their findings.
“We were engaged to perform an audit in accordance with auditing standards generally accepted in the United States, and in accordance with government auditing standards. We performed a federal compliance audit in accordance with uniform guidance for the year ended September 30, 2024, and this presentation is to inform those charged with governance of our findings, results, and observations,” Willie told the board.
Before revealing the audit’s quantitative findings, Willie painted a positive picture of the EDA and its compliance with relevant federal statutes that govern its operations.
“There are a number of areas of focus. Critical in these times is management’s ability to circumvent controls and override controls. We tested those. We did not find that that occurred. We also perform significant work over grant revenue in compliance with federal statutes, and we are happy to report that we found EDA to be in compliance,” he said.
Compared with fiscal year 2023, fiscal year 2024 saw an overall improvement in the EDA’s financial health.
“We have an actual decrease in the negative net position, $5.6 million in [fiscal year] 2023 versus $3.382 in [fiscal year] 2024, so we have about a $2.3 million change,” Bridgewater said.
In accounting, an organization’s net position is roughly defined as the difference between its assets and liabilities. While the EDA’s net position was negative in both 2023 and 2024, representing a financial deficit, this deficit shrank by $2.3 million year over year.
Bridgewater noted that, while the EDA’s assets decreased by roughly $13 million, this decrease was offset by a larger decrease in the authority’s liabilities.
“You can see that this larger decrease in liabilities is flowing down to your net position,” she said.
Bridgewater also pointed out the EDA’s move to convert many of its cash reserves to investments. From 2023 to 2024, the value of all EDA investments increased from $957,562 to $20,973,787 as a result of this choice.
Following the audit presentation, the board entered an executive session. No votes were taken, and the meeting was subsequently adjourned.
