Virgin Islands inspector general seeks $2.9 million, faces questions on staffing and delayed audits

Senator Novelle E. Francis Jr., chair of the Committee on Budget, Appropriations and Finance, heard testimony on Aug. 18 from Delia Thomas, the Virgin Islands inspector general, who requested $2,898,392 for fiscal year 2026 to maintain the office’s current staffing and operations.

The request, the same total requested for FY2025, is intended to support 22 funded positions and preserve the office’s 20 filled positions while the inspector general continues recruiting for two vacancies. "The Virgin Islands Inspector General's Office budget recommendation is $2,898,392, which maintains the same level as fiscal year 2025," Thomas told the committee.

Why it matters: The inspector general’s office audits and investigates government programs, and senators used the hearing to press Thomas on delays getting records from agencies, the pace of completed audits, and whether the office uses its subpoena authority when agencies stall. Those delays affect the delivery and timing of reports that could identify recoverable losses or improvements in government contracting and program oversight.

Thomas told the committee the office currently has 20 employees — including 11 auditors, two investigators and seven administrative and support staff — and two vacant positions: a senior special investigator and a deputy inspector general. She said the office aims to grow to 25 field positions as budget and hiring permit.

On work completed and in progress, Thomas said the office issued two reports in FY2025: an audit of the Education Initiative Fund (issued May 6, 2025) and an inspection of agriculture revolving funds (issued Jan. 14, 2025). The agriculture inspection, she said, identified a lost-opportunity total of about $4,125,000 related to multi‑year underfunding and other issues.

Thomas described several ongoing assignments: a draft audit of the Virgin Islands Taxicab Commission covering fiscal years 2018–2022; multiple audits of the Virgin Islands Water and Power Authority (WAPA), including reviews tied to Act No. 87‑31 (the VITAO propane contract and a $2,000,000 offshore payment), an audit of employee loan-deduction transmissions, billing and collections work, and an inspection of WAPA contracting practices; an inspection of the East End Medical Center covering contracts and leases from 2018–2024; and audits of other boards and departments. She said the taxicab and WAPA assignments together have used a large share of audit staff time.

On delays and enforcement tools, Thomas said the office has subpoena power and has issued subpoenas "already this past year," adding, "so they've been complied with." She said auditors try to work cooperatively with agencies first but will issue subpoenas if agency delays prevent timely completion of work.

Senators pressed Thomas on several fronts. Senator Dwayne M. DeGraff asked how productivity is measured; Thomas said assignments are planned to be completed within roughly eight months and that the office is documenting response delays from agencies to explain schedule slips. DeGraff and others pressed whether the office needs additional statutory authority; Thomas said the office already uses subpoenas and would issue them more often on the audit side if agencies “deliberately stall.”

Senator Hubert L. Frederick expressed concern about the number of reports produced relative to staff size; Thomas said limited, slow responses from agencies curtail the number of completed reports despite auditors working multiple assignments. Senator Ray Fonseca asked about recurring procurement problems and the taxicab medallion accounting; Thomas said procurement follows Department of Property and Procurement rules and that audit findings on specific procedures will be addressed in issued reports.

Budget breakdown: Thomas presented the FY2026 plan by subaccounts. Personnel services and fringe benefits make up the largest share (about $2,437,405, or 84% of the request, split as $1,717,644 for personnel services and $719,760 for fringe benefits). Supplies were estimated at $76,652 (2.6%), other services $331,235 (11.4%), utilities $45,100 (1.6%), and capital outlays $8,000 (0.3%). Thomas reported FY2025 actual expenditures through July 11, 2025 of $2,145,013, or approximately 74% of that year’s appropriation.

Federal reimbursements and capital costs: Budget director Lucas Pascal told the committee the office received reimbursements tied to hurricane-related project worksheets — $3,002.25 (project worksheet 801), $50,005.40 (project worksheet 35) and $6,000 (project worksheet 42) — and earlier emergency repairs (air-conditioning and a sewage-line replacement) together cost roughly $71,600, which used most of the office’s annual maintenance allotment in the first month of the fiscal year.

Thomas described other audit outcomes and risks: the office has seven open investigations (with outcomes ranging from insufficient evidence to referral for prosecution), continues to assist federal auditors, and is preparing for a peer review scheduled for calendar year 2026. She said the taxicab commission audit is in editing and that her office expects to issue the final report by the end of 2026 after agency response, indexing and exit conference steps are completed.

No formal votes or committee actions were taken during the hearing. The committee recessed at the end of the IG’s testimony to proceed with afternoon witnesses.

Looking ahead, Thomas asked the committee to fund the $2,898,392 request to maintain staffing and complete audits and investigations. "This budget will allow us to fund 22 positions as we work to continue growing the agency to the desired 25 field positions to better address audits and investigations," she said.

Ending note: Senators commended the inspector general’s staff for ongoing work and urged timely use of enforcement tools when agencies fail to provide records, while emphasizing the need for completed audits that can lead to recoveries or corrective action.