Department of Finance requests $13.9 million for FY2026, cites staffing, audits and IT upgrades

The Department of Finance presented its fiscal year 2026 operating budget of $13,918,102 to the Committee on Budget, Appropriations and Finance on June 10, 2025. Executive Assistant Commissioner Clarena Modis Elliott testified that the request would fund 50 full‑time positions and support efforts to update technology, complete long‑running audits and strengthen internal controls.

The budget request is largely personnel driven. The department told senators it proposes $5,078,841 for personnel and $1,526,271 for fringe, along with $7,970,667 in other services and charges. Modis Elliott said the accounting operation — currently staffed by three analysts — processed over 50,000 transactions totaling roughly $900 million year‑to‑date and that that workload, plus audit obligations, justify continued staffing and training investments.

Why it matters: Finance holds custody and accounting responsibilities that affect every agency’s cash flow. Committee members pressed the department about vendor payment delays, reconciliation backlogs and the territory’s readiness to exit federal receivership. Modis Elliott and Deputy Commissioner Wilfredo Guzman described steps including a desk audit of compensation, rollout of Tyler Technologies time and attendance, server and operating‑system upgrades, and work on a GVI transparency site in partnership with BIT and OMB.

Key supporting details and context - Staffing and organization: The department reported 50 filled positions (38 St. Thomas, 12 St. Croix), 4 active vacancies and a payroll headcount funded in the request. The budget includes $160,000 for limited capital outlay and $300,000 for utilities and server resiliency. - Audits and compliance: The department said it expects to be caught up on outstanding audits by June 2026 and is implementing corrective action plans; the most recent completed audit listed in testimony was 2021, with 2022 in draft and 2023 in progress. - Transactions and treasury operations: The accounting division has processed more than 50,000 transactions year‑to‑date. Treasury staff process about 19,000 cash receipt entries per month and central payroll processes roughly 6,400 checks biweekly; the bureau is moving toward automation of reconciliation and other treasury functions. - IT and process improvements: MIS reported 5 agencies live on the new time and attendance platform; new servers and operating systems were installed and the department is implementing Tyler time and attendance and enhancing incident response. - Federal coordination and exit from receivership: Finance said it is updating financial policies and working with OMB and federal partners to support the territory’s exit from receivership, including Phase 2 implementation of the Public Finance Management Act.

Discussion vs. direction vs. decisions - Discussion: Senators questioned late vendor payments, the large AP aging, reconciliation delays across agencies and the pace of audit completion. Officials described causes (late invoice entry by agencies, staffing limits) and actions underway. - Direction: Committee members requested follow‑up documentation on reconciliations, vacancy lists, training plans and corrected budget coding where a duplication in reporting was identified by Deputy Commissioner Guzman. - Decision: No formal appropriation votes were taken at the hearing; the department’s request will be considered during the budget process.

What’s next: Senators asked Finance to supply monthly reconciliation details, vendor aging reports and status updates on the transparency website and audits. Finance said it will continue implementing system and policy changes and provide requested follow‑ups to the committee.