[Review of Government of the Virgin Islands Appropriation Acts As Related to United States v. Government of the Virgin Islands, Civil No. 1984-104]
[From the U.S. Government Printing Office, www.gpo.gov]

Report No. 01-I-422

Title: Review of Government of the Virgin Islands Appropriation
       Acts As Related to United States v. Government of the Virgin
       Islands, Civil No. 1984-104

 
Date:  September 21, 2001

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September 21, 2001

ADVISORY LETTER

Honorable Judge Thomas K. Moore
District Court of the Virgin Islands of the United States
5500 Veterans Drive, Suite 310
Charlotte Amalie, Virgin Islands 00802

Subject: Review of Government of the Virgin Islands Appropriation Acts As Related to United States v. Government of the Virgin Islands, Civil No. 1984-104 (No.  01-I-422)

Dear Judge Moore:

This letter presents the results of our review of Acts No. 6415 and 6427 of the Government of the Virgin Islands.  The objective of the review, which was conducted pursuant to your request of August 29, 2001, was to determine (1) whether any of the Government's projected income tax windfall for
fiscal year 2001 had been appropriated to repair the St. Croix sewage facilities, (2) if not, whether the Governor at any point in the appropriation process made any recommendations with respect to such sewage facility repairs, and (3) whether any member of the Virgin Islands Legislature made such a recommendation during the appropriation process.  Our review consisted of analyses of the appropriation bills submitted by the Governor and the appropriation acts enacted by the Legislature, discussions with the Virgin Islands Director of Management and Budget, and attempts to obtain and review transcripts of the related legislative hearings.

RESULTS OF REVIEW

Act No. 6415 did not include any appropriations related to the territorial sewage system.   However, Act No. 6427 included a specific appropriation of $250,000 "for the maintenance of the territorial sewage system" and additional amounts appropriated for other sewage-related purposes.  The specific results of our review are contained in the following paragraphs.

The Governor's Appropriation Bills.  The Governor submitted to the Legislature two supplemental appropriation bills to authorize the expenditure of Government funds during fiscal year 2001, as follows:

- The purpose of the first bill was "To provide supplemental appropriations from the General Fund to fund salary increases for Government employees and eligible retirees, public school repairs, health insurance premiums and for other purposes."  This bill did not contain any proposed appropriations
related to the territorial sewage system.

- The purpose of the second bill was "To provide for supplemental appropriations from the General Fund for Fiscal Year 2001, to provide for local matching funds for federal disaster assistance, and for other purposes."  The bill included the following proposed appropriations that appear to be related to the territorial sewage system:

--  $250,000 "for the maintenance of the Territorial sewage system" (Section 1(m)).  

--  $853,000 "to be used to pave roads on the island of St. John, barge garbage from St. John to St. Thomas and for costs associated with the maintenance and operation of the St. John Waste Water Treatment Plant" (Section 6(a)).

--  $1,000,000 "to fund start up costs and operating costs, inclusive of personnel and consultation costs, associated with the establishment of the V.I. Waste Management Authority" (Section 13(b)).

The Legislature's Appropriation Acts.  The two appropriation acts passed by the Legislature essentially maintained the appropriations proposed by the Governor and, in the case of Act No. 6427, included additional sewage-related appropriations, as follows:

- Act No. 6415 was passed by the Legislature on June 15, 2001 and was signed into law by the Governor, with certain line-item vetoes, on June 18, 2001.  The Act did not contain any appropriations related to the territorial sewage system.

- Act No. 6427 was passed by the Legislature on July 19, 2001 and was signed into law by the Governor, with certain line-item vetoes, on August 7, 2001.  The Act contained the following appropriations that appear to be related to the territorial sewage system:

--  $250,000 "for the maintenance of the Territorial sewage system" (Section 6).

--  $480,000 "for the repair of the drainage system that runs past the Lucinda Millin Home along Paul M. Pearson Gardens" (Section 31).

--  $600,000 "to fund start up and operating costs, inclusive of personnel and consultant costs, associated with the establishment of the V.I. Waste Management Authority" (Section 73(b)).

--  $853,000 "to pave roads on the island of St. John, barge garbage and equipment from St. John to St. Thomas and for costs associated with the maintenance and operation of the St. John Waste Water Treatment Plant" (Section 79).

--  $100,000 "for upgrading and extending the outfall discharge pipe at the Brass View Treatment Plant No. 0039881 in St. Thomas" (Section 105).

--  $20,000 "to the Magen's Bay Authority to be used to complete construction of the Authority's wastewater treatment plant" (Section 111).

Discussion with Director of Management and Budget.  On September 18, 2001, we discussed the two appropriation acts with Mr. Ira Mills, Director of Management and Budget.  Mr. Mills stated that Act No. 6427 included the following appropriations related to the sewage system on St. Croix:

- $250,000 "for the maintenance of the Territorial sewage system" (Section 6).  Mr. Mills stated that because this appropriation was for sewage repairs throughout the territory, an (unspecified) amount would be used to correct  sewage problems at Sion Farm, St. Croix.

- $75,000 "to upgrade the facilities at Sion Farm Park, including repairing pumps, electrical service and installing additional lines" (Section 46).  Mr. Mills stated that the proposed upgrades at the Sion Farm Park will include improvements to the sewage system.

- $85,000 "to repair the tot lot and benches and install new lines and roofing for the stand at the
Renholdt F. Jackson Complex in Estate Whim, Frederiksted, St. Croix" (Section 48).  Mr. Mills stated
that the repairs to the Jackson Complex will include improvements to the sewage system.

Mr. Mills also noted that Act No. 6427 appropriated funds for maintenance of the St. John wastewater treatment facility.

Transcripts of Legislative Appropriation Hearings.  We made several attempts, during the period of September 4 to 18, 2001, to obtain transcripts of the legislative hearings related to Acts No. 6415 and 6427 so that we could determine whether any discussions were held regarding proposed appropriations for repairs to the sewage system.  However, we were told by officials of the
Legislature that the transcripts had not yet been prepared and that it would take another 2 to 3 weeks before the transcripts would be available.

If you need any additional information on this matter or if you would like this Office to continue to pursue obtaining a copy of the legislative hearing transcripts related to Acts No. 6415 and 6427, please contact me at 774-8300.

Sincerely,


Arnold E. van Beverhoudt, Jr.
Audit Manager for Insular Areas

cc:  Joycelyn Hewlett, Assistant U.S. Attorney
Iver A. Stridiron, V.I. Attorney General
Michael Law, Assistant V.I. Attorney General
Donald G. Frankel, U.S. Department of Justice
Dr. Raphael A. Rios