[Final Audit Report Use of Official Credit Cards, Government of the Virgin Islands (Report No. V-IN-VIS-0104-2003)]
[From the U.S. Government Printing Office, www.gpo.gov]

Title: Final Audit Report ï¿½Use of Official Credit Cards, Government
       of the Virgin Islandsï¿½ (Report No. V-IN-VIS-0104-2003) 

Date:  August 27, 2004


****************************************DISCLAIMER***************************** 
This file contains an ASCII representation of an OIG report. No attempt has been made to display graphic images or illustrations. Some tables may be included, but may not resemble those in the printed version. A printed copy of this report may be obtained by referring to the PDF file or by calling the Office of Inspector General, Division of Acquisition and Management Operations at (202) 219-3841. 
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Honorable Charles W. Turnbull
Governor of the Virgin Islands
No. 21 Kongens Gade
Charlotte Amalie, Virgin Islands 00802

Subject:	Final Audit Report ï¿½Use of Official Credit Cards, Government of the Virgin Islandsï¿½ (Report  No. V-IN-VIS-0104-2003)

Dear Governor Turnbull:

	The attached report presents the results of our audit of the use of official credit cards by the Virgin Islands Public Television System, Virgin Islands Water and Power Authority, University of the Virgin Islands, Virgin Islands Port Authority, Virgin Islands Housing Finance Authority, Economic Development Authority, Government Employees Retirement System, and Roy L. Schneider Hospital.  The objective of our audit was to determine whether the Government agencies used official credit cards for only legitimate purposes.

	The legislation, as amended (5 U.S.C. app. 3), creating the Office of Inspector General requires that we report to Congress semiannually on all reports issued, actions taken to implement our recommendations, and recommendations that have not been implemented.  Therefore, this report will be added to the next semiannual report.	

	We consider all the report recommendations implemented except Recommendations 4 and 5, which are addressed  to the University of the Virgin Islands and are considered to be unresolved.  Therefore, we request that your office coordinate with the University to provide a response that includes the information requested in Appendixï¿½3.  The responses should be provided by September 24, 2004, and be addressed to Mr. Roger La Rouche, Assistant Inspector General for Audits, Office of Inspector General, U.S. Department of the Interior, 1849 C Street, NW (MS-5341), Washington, DC 20240; with copies to our Caribbean Field Office, Ron deLugo Federal Building ï¿½ Room 207, St. Thomas, VI 00802.

							Sincerely,
							
							
							William J. Dolan, Jr.
							Regional Audit Manager

cc:	Osbert Potter, General Manager, Virgin Islands Public Television System
	Alberto Bruno Vega, Executive Director, Virgin Islands Water and Power Authority
	Dr. Laverne Ragster, President, University of the Virgin Islands
	Darlan Brin, Executive Director, Virgin Islands Port Authority
	Clifford Graham, Executive Director, Virgin Islands Housing Finance Authority
	Frank Schulberbrant, Chief Executive Officer, Economic Development Authority
	Lawrence Bryan, Administrator, Government Employees Retirement System
	Rodney Miller, Chief Executive Officer, Roy L. Schneider Hospital



EXECUTIVE SUMMARY

We audited official credit card charges totaling more than     $3.1ï¿½million made by eight autonomous agencies of the Government of the Virgin Islands during fiscal years 1998 to 2003.  We found that employees used official government credit cards to buy personal items costing $180,820 and did not always pay for their personal purchases.  In the worst case, the former General Manager of the Virgin Islands Public Television System made personal charges totaling $101,370 and reimbursed the Public Television System for only $16,630 over a 6year period.  We also identified charges totaling $339,990 for purported business expenses that were not supported by receipts or other appropriate documentation.  Most of the unsupported charges occurred at the Public Television System and the Water and Power Authority.

These discrepancies occurred because the agencies generally did not have comprehensive policies and procedures to (1) define the allowable uses of official credit cards, (2) establish strong internal controls to monitor the use of credit cards, and (3) specify the appropriate disciplinary action for misuse of credit cards.  We made 11 recommendations to strengthen controls over the use of official credit cards at the eight agencies audited.  Based on the responses received to the draft report, we consider 9 of the 11 recommendations to be resolved and implemented, and 2 recommendations to be unresolved.





















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CONTENTS

Background	   1
Objective and Scope	   1
Prior Audit Coverage	   2


Overview	   3 
Virgin Islands Public Television System	   3  
Virgin Islands Water and Power Authority	   7  
University of the Virgin Islands	   9 
Virgin Islands Port Authority	 10
Virgin Islands Housing Finance Authority	 10
Economic Development Authority	 11
Government Employees Retirement System	 11
Roy L. Schneider Hospital	 12


	 13



1.ï¿½ï¿½Summary of Audit Coverage	 16
2.ï¿½ï¿½Responses to Draft Report	 17
3.ï¿½ï¿½Status of Recommendations	 31






















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INTRODUCTION

We identified eight autonomous agencies of the Government of the Virgin Islands that had official credit cards.  These agencies were: the Virgin Islands Public Television System, the Virgin Islands Water and Power Authority, the University of the Virgin Islands, the Virgin Islands Port Authority, the Virgin Islands Housing Finance Authority, the Economic Development Authority, the Government Employees Retirement System, and the Roy L. Schneider Hospital.  None of the entities within the Executive, Legislative, and Judicial branches of the Government or any other autonomous agencies had official credit cards.

We audited credit card charges totaling $3,144,380 made by 48ï¿½cardholders during fiscal years 1998 to 2003.  NonFederal funds were used to pay credit card charges at seven of the eight agencies audited.  The Virgin Islands Public Television System used Federal funds received through the Corporation for Public Broadcasting to pay credit card charges.


The objective of our audit was to determine whether the Government agencies used official credit cards only for legitimate purposes.  The scope of audit varied depending on the timeframe during which each agency had official credit cards, but generally included credit card transactions during fiscal years 1998 through 2003.  We reviewed credit card statements and supporting documents for all charges made by 25 cardholders at seven of the eight agencies.  At the Water and Power Authority, we reviewed charges made by 23 cardholders for a random sample of 4 months for each year in the audit scope.

Our audit was conducted in accordance with the ï¿½Government Auditing Standards,ï¿½ issued by the Comptroller General of the United States.  Accordingly, we included such tests of records and other auditing procedures that were considered necessary under the circumstances.  The ï¿½Standardsï¿½ require that we obtain sufficient, competent, and relevant evidence to afford a reasonable basis for our findings and conclusions.

As part of our audit, we evaluated the internal controls related to the usage of the credit cards and the billing and payment of the charges to the extent we considered necessary to accomplish the audit objective.  Internal control weaknesses identified in these areas are discussed in the Results of Audit section of this report.  The recommendations, if implemented, should improve the internal controls in these areas.


The Office of Inspector General has not conducted any prior audits of the use of official credit cards by the Government of the Virgin Islands.  However, our May 2001 audit report on the operations of the Virgin Islands Lottery (No.ï¿½01I290) disclosed that during the period of June 1995 to March 1999, the former Executive Director of the Lottery used an official credit card for personal expenses totaling about $99,000.  As a result of a followup criminal investigation by our Office of Investigations, the former Executive Director pled guilty in U.S. District Court to a charge of wire fraud in his embezzlement scheme, was sentenced to 20 months of imprisonment and 3ï¿½years of supervised release, and was required to pay restitution in the amount of $72,614.  Our current audit disclosed that the Virgin Islands Lottery no longer has any official credit cards.


RESULTS OF AUDIT

Employees used official government credit cards to buy personal items costing $180,820 and did not always pay for their purchases.  In the worst case, the former General Manager of the Virgin Islands Public Television System made personal charges of $101,370 and reimbursed only $16,630 over a 6year period.  We also identified charges of $339,990 for purported business expenses that were not supported by any receipts at four agencies.  Most of the problems we found occurred at the Public Television System and the Water and Power Authority.  We attributed these problems to a lack of comprehensive policies and procedures to
(1) define the allowable uses of official credit cards, (2) establish strong internal controls to monitor the use of credit cards, and 
(3) specify the appropriate disciplinary action for misuse of credit cards.  A summary of our audit coverage is presented in the Appendix and our findings at each agency are discussed below.


Two WTJX officials, the General Manager and the Chief Engineer, held official credit cards during the period of January 1998 to September 2003.  We examined all charges, totaling $300,000, made by the two employees and documented personal charges of $120,890 and purported business charges of $125,160 that were not substantiated by any supporting documents.


 Figure 1


WTJX paid all credit card bills, including those with personal and unsupported charges, from Federal grant funds received through the Corporation for Public Broadcasting (CPB).  The terms of the grants restricted the use of grant funds ï¿½to augment the capability of CPB-supported public broadcast stations to expand the quality and scope of their services to the community.ï¿½

During the audit period, WTJXï¿½s General Manager made personal charges totaling $101,370.  In addition, the Chief Engineer made personal charges totaling $19,520.   


 Figure 2

The General Managerï¿½s personal charges consisted of:

> $31,430 for airline tickets, car rentals, restaurants, and hotel stays for herself and her family members.

> $16,640 for groceries, household items, and beauty products.

> $15,510 for clothing and shoes.

> $13,330 for jewelry; including $6,200 in three purchases at the same store on the same day.

> $9,910 for automotive parts and accessories. 

> $9,850 for furniture and electronics; including $1,800 for a flat screen television.

> $4,700 for miscellaneous purchases such as eye wear, pharmaceutical items, and souvenirs. 

A significant amount of the travel charges coincided with the dates of the General Managerï¿½s wedding and honeymoon.  For example, travel charges included: $7,945 for her wedding reception at the Sugar Bay Resort on St.ï¿½Thomas on November 24, 2001; $996 for airfare from St.ï¿½Thomas to St.ï¿½Lucia on Novemberï¿½25, 2001; and $1,788 for a stay at the Sandals Resort on St.ï¿½Lucia from Novemberï¿½25 to 30, 2001. 

According to WTJX officials, ï¿½past practiceï¿½ allowed the General Manager to make personal charges on the official credit card with the agreement that she had to pay the bill in full and on time. However, the General Manager made increasing amounts of purchases while making only sporadic payments totaling $16,630. Figure 3 presents a breakdown of charges and payments by year. For example, she made $52,436 in personal charges without making a single payment in 2003. In fact, at the start of our audit she had a total outstanding balance of almost $82,870 in unpaid personal charges.


 Figure 3

We held separate meetings with WTJXï¿½s Board of Directors and the General Manager to discuss our findings. On September 11, 2003, the Board of Directors demanded restitution of $84,670 from the General Manager and gave her until September 30, 2003, to make payment in full. The General Manager reimbursed WTJX the $84,670 on September 30, 2003, and a termination letter relieving her of her duties was issued on the same date.  However, additional personal charges of $1,870 for the purchase of a television and clothing were included on the October 5, 2003 billing statement.  Therefore, a balance of about $70 was still owed to WTJX.

The Chief Engineer made personal charges totaling about $19,520 and made regular payments to reimburse WTJX for the charges.

WTJX claimed the remaining $179,110 in credit card charges as business related expenses.  However, the only receipts on file pertained to the payment of WTJXï¿½s cellular telephone bills and training related travel ($53,950).  All other credit card charges, totaling $125,160, were approved and processed without the benefit of supporting documentation other than the monthly credit card statements.  Cardholders were not required to provide receipts.  As a result, there was little assurance that all of these charges were actually business related.  

In response to the draft of this report, in June 2004 WTJX provided us with documentation to support the official nature of credit card charges totaling $28,970.  WTJX officials stated that they were continuing to research their records to locate documentation for the remaining $96,190 in unsupported charges.

WTJX did not have any written policies or procedures for the use of official credit cards during the time period covered by our review.  We found that it had been the unwritten practice (ï¿½past practiceï¿½) of the former General Manager and the former Board of Directors to allow WTJX employees with official credit cards to use them for personal expenses on the condition that such personal charges were promptly reimbursed.  In order to track these charges, WTJX maintained an accounts receivable ledger to record the personal charges claimed by the General Manager and the Chief Engineer.  However, we identified $13,750 in personal charges for the General Manager that had not been recorded in the ledger. The General Manager did not claim these personal charges until after we held a meeting with her to address them on September 17, 2003. 

The Board of Directors did not adequately supervise the use of official credit cards or monitor reimbursement payments.  According to WTJXï¿½s bylaws, the Treasurer of the Board of Directors and the General Manager were required to jointly certify all payments in excess of $2,000.  The General Manager ignored the bylaws by signing the checks to pay the monthly credit card bills before allowing the Treasurer to certify the payments.  According to the Treasurer, the General Manager routinely withheld the credit card statements.  In the few instances when the General Manager provided the statements, the Treasurer would certify the credit card statements long after they had already been paid.  

Our audit disclosed that WTJXï¿½s public accountant discovered the personal use of the official credit cards and reported his findings in the fiscal years 2001 and 2002 financial statement audit reports. The General Manager received the 2001 report and concealed her actions by withholding from the Board of Directors the ï¿½Schedule of Findingsï¿½ section of the report, which revealed the misuse of the credit card. Further, the General Manager responded to the recommendations without any input from the Board.1

After hearing of our preliminary findings, the Chairperson of the Board of Directors issued a letter dated Octoberï¿½24, 2003, to the Corporation of Public Broadcasting detailing the financial irregularities at the station and the steps taken to correct the situation, including demanding restitution and dismissing the General Manager.  Subsequent to our audit, WTJX drafted new policies for official purchases and, at least temporarily, discontinued the official credit card program.  We have referred the matter of misuse of official credit cards for investigative followup. 


Twenty-three WAPA officials held credit cards.  These included members of the Board of Directors, the Executive Director, Division Directors, and several other key employees.  For each cardholder, we selected random samples of 4 months for each year during the period of January 1998 to October 2002.  We also reviewed a random sample of 3 months for the employees in 2003.  The charges reviewed for all 23 officials totaled $492,500, which included $59,810 in personal charges and $148,110 in unsupported charges. 

WAPAï¿½s credit card program required the cardholders to pay their individual credit card bills and to submit receipts and vouchers for reimbursement.  WAPA reimbursed the cardholders only for the charges specifically identified as official WAPA business.  WAPA procedures, however, did not specify the allowable use of credit cards.

Sixteen WAPA cardholders made personal charges using official credit cards in amounts totaling $59,810 for the months included in our sample, as summarized in Figure 4. 


 Figure 4

While not prohibited, the use of official government credit cards for personal purchases adversely affected WAPA.  Specifically, the credit card company canceled five cards because of nonpayment, principally for personal charges totaling $7,020.  For example, the Chairperson of the Board of Directors used her credit card to purchase shoes, automotive parts, and the use of a rental car totaling $1,400 in July 2000.  For these personal charges, she wrote five separate checks, on five separate occasions, which were all returned by the bank for insufficient funds.  Her account was cancelled by the credit card company in January 2001 due to delinquency. 

Without credit cards, these five WAPA employees could not efficiently conduct official business.  Also, the high level of delinquency could negatively impact WAPAï¿½s ability to continue its credit card program.  

In a related matter, the Chairpersonï¿½s non-payment of personal charges, and subsequent card revocation, resulted in her receipt of 10 travel advances totaling $9,010.  However, she did not provide invoices or receipts to support these travel advances.  Although WAPA Board policy mandated submission of a full accounting of travel expenses to the Office of the Governing Board, the Chairperson did not prepare any expenditure reports.  After several inquiries by the Accounts Payable Supervisor, the Chairperson forwarded four affidavits addressing $3,310 of the $9,010 in advances.  The affidavits claimed that she lost all receipts supporting her travel expenses but had spent all the money advanced to her.  No expense reports or affidavits were submitted for the remaining $5,700.

We identified credit card charges totaling $148,110 that were not adequately supported by receipts or vouchers.  Of that amount, $124,670 was related to travel expenses charged to the credit card issued to the Director of Human Resources.  WAPA personnel who did not have a credit card used the Directorï¿½s card to charge travel and training expenses.  Those employees traveled with a letter on WAPA letterhead that they presented to the hotels or training centers authorizing the charge of the lodging and training expenses.  However, receipts for these charges were rarely forwarded to the Accounts Payable Division.  Therefore, the Accounts Payable Division paid the charges based on a summary that was prepared by the Directorï¿½s secretary.  Because of problems and delays in obtaining receipts from employees, the secretary prepared the summary based on the credit card statements and her knowledge of which employees went to training.


Eight UVI officials held credit cards for official use.  These consisted of the former and current Presidents, the Vice-Presidents, the Chancellors, and the Provost.  We reviewed a total of $407,000 in credit card charges during the period of October 2000 to August 2003.  The UVI officials used the credit cards only for travel related expenses, UVIrelated entertainment and hospitality, and the occasional purchase of small supplies.  Cardholders approved their own purchases and, in general, submitted copies of their monthly credit card statements, vouchers, and supporting receipts to the Accounting Division for processing.  The Accounting Division paid the bills and recorded payments against the appropriate departmental budgets.  We found no personal charges made with official UVI credit cards.

We did find that credit card charges totaling about $56,000 were not adequately supported by vouchers or receipts.  The majority of those charges were made at the end of fiscal year 2001.  According to Accounting Division employees, they processed the payments without the benefit of receipts in order to close out the fiscal year records.  However, we found no evidence that the Accounting Division later followed up to obtain the missing receipts.  


Although UVI had policies regarding the use of official credit cards, these policies did not address airline upgrades and club memberships.  For example, we noted that the former President and a current Vice President purchased airline upgrades and paid airline club membership dues, and the current President paid airline club membership dues.  All of these charges totaled $5,300.  By way of comparison, these types of travel expenses are not paid by the Federal Government.


Four VIPA officials held credit cards for official use.  These consisted of the Executive Director, the Director of Administration and Finance, and the Purchasing Supervisors of the St. Thomas and St. Croix offices.  We reviewed charges totaling $1.2 million during the period of October 1997 to September 2003.  We found no personal or unsupported charges made with official VIPA credit cards.

Although all charges were supported and related to VIPA business, we noted several instances in which VIPA used a credit card to purchase expensive gifts for departing members of the Board of Directors and retiring employees.  Those charges included:

> $2,250 for three $450 watches and a $900 camcorder for three departing Board members.

> $1,200 for three $400 jeweled pendants and chains for three retiring employees.

We do not question the gesture of presenting departing employees or officials with tokens of appreciation.  However, VIPA should develop procedures to limit the use of public funds for these occasions to a reasonable level.  In that regard, VIPAï¿½s credit card program is based on the Federal credit card program administered by the U.S. General Services Administration (GSA), and VIPA used general guidelines developed by GSA.  For the allowable use of credit cards, the GSA guidelines refer readers to internal agency policies.  VIPA, however, did not have detailed internal policies and procedures concerning the allowable use of official credit cards.  

Three VIHFA officials held credit cards for official use.  These were the Executive Director, the acting Assistant Executive Director, and the Office Manager.  We reviewed charges totaling $98,350 made from October 1997 to July 2003. We found that most charges to VIHFAï¿½s credit cards were for official purposes.  

We could not review charges totaling $7,850 because four monthly credit card statements could not be found.  We were able to determine the amounts charged in those four months by identifying the beginning balance amounts shown in the following monthsï¿½ statements.  We also noted that charges totaling $2,870 were not adequately supported by invoices, vouchers, or receipts. Therefore, unsupported charges totaled $10,720.

Although, VIHFAï¿½s policies and procedures currently allow the use of official credit cards for personal charges, we did not find any personal charges on the official credit cards. 


Four officials of the EDA held credit cards for official use.  These consisted of the Chief Executive Officer, the Director of Administration and Finance, the Assistant Director, and the President of the Board of Directors.  We reviewed all $59,570 in charges made during the period of June 2002 to July 2003.  

We noted one instance in which an EDA cardholder used his credit card to make a personal purchase in the amount of $120 while on travel status.  The cardholder reimbursed EDA for this charge. We found no unsupported charges made with official EDA credit cards.

Although EDA credit card policy stated that official credit cards were to be used only for travel expenses, cardholders made six non-travel purchases totaling $8,670. These purchases were of an official nature and were approved by either the Chief Executive Officer or the Director of Administration and Finance.  We believe that EDA should enforce its policy or revise it to allow for non-travel purchases of an official nature.  Also, the policy should be revised to prohibit the use of the credit cards for personal purchases.


The Administrator and the Chief Financial Officer of GERS held official credit cards.  We reviewed all $494,360 in credit card charges during the period of January 1999 to September 2003.  GERS had formal policies and procedures regarding the allowable uses of official credit cards that included the appropriate disciplinary actions for any misuse of the cards.  We found that all charges to GERS credit cards were for appropriate official purposes and were properly supported. 


The Hospitalï¿½s Chief Executive Officer and the Chief Operating Officer held credit cards for official use.  We reviewed all $92,600 in credit card charges during the period of January 2003 to September 2003.  Although we found that all charges to credit cards were for appropriate official purpose and were properly supported, the Hospital did not have any policies and procedures regarding the allowable uses of official credit cards.  The Hospitalï¿½s credit card program was in its infancy and had only existed for 9 months at the time of our audit.  The Hospital should implement policies and procedures to administer the credit card program to ensure that it continues to run effectively. 


RECOMMENDATIONS

We recommend that the Board of Directors of the Virgin Islands Public Television System:

	1.	Develop and implement formal policies and procedures to 
(a) define the allowable uses of official credit cards, (b) establish strong internal controls to monitor the use of credit cards, 
(c) require the submission of receipts to support credit card charges, and (d) specify the appropriate disciplinary action for misuse of credit cards.  Such policies and procedures should prohibit the use of official credit cards for personal purposes and provide strict disciplinary action for any such personal use.


We recommend that the Board of Directors of the Virgin Islands Water and Power Authority:

	2.	Develop and implement formal policies and procedures to 
(a) define the allowable uses of official credit cards, (b) establish strong internal controls to monitor the use of credit cards, 
(c) require the submission of receipts to support credit card charges, and (d) specify the appropriate disciplinary action for misuse of credit cards.  Such policies and procedures should prohibit the use of official credit cards for personal purposes and provide strict disciplinary action for any such personal use.

	3.	Enforce existing policies and procedures that require the submission of vouchers and receipts to support the use of travel advances given to officials and employees.  Also, obtain supporting documentation from the Chairperson for the remaining $5,700 in outstanding travel advances.


We recommend that the Board of Directors of the University of the Virgin Islands:

	4.	Revise its credit card policies and procedures to provide guidance on the types of charges that are allowable, including addressing whether airline upgrades and airline club memberships are to be considered allowable.


	5.	Enforce existing policies and procedures that require the submission of vouchers and receipts to support charges made against official credit cards.


We recommend that the Board of Directors of the Virgin Islands Port Authority:

	6.	Develop and implement formal policies and procedures to 
(a) define the allowable uses of official credit cards, (b) establish strong internal controls to monitor the use of credit cards, 
(c) require the submission of receipts to support credit card charges, and (d) specify the appropriate disciplinary action for misuse of credit cards.  Such policies and procedures should prohibit the use of official credit cards for personal purposes and provide strict disciplinary action for any such personal use.

	7.	Develop and implement policies and procedures that clearly define the conditions under which gifts may be given to departing Board members and retiring employees.  Such policies and procedures should set a reasonable dollar limit on the value of such gifts.


We recommend that the Board of Directors of the Virgin Islands Housing Finance Authority:

	8.	Revise its credit card policies and procedures to (a) prohibit the use of official credit cards for personal charges and (b) specify the appropriate disciplinary action for any such personal use.

	9.	Enforce existing policies and procedures that require the submission of vouchers and receipts to support charges made against official credit cards.


We recommend that the Board of Directors of the Economic Development Commission:

	10.	Revise its credit card policies and procedures to (a) prohibit the use of official credit cards for personal charges and (b) allow the use of official credit cards for small purchases that are approved in advance by the Chief Executive Officer.


We recommend that the Board of Directors of the Roy L. Schneider Hospital:

	11.	Develop and implement formal policies and procedures to 
(a) define the allowable uses of official credit cards, (b) establish strong internal controls to monitor the use of credit cards, 
(c) require the submission of receipts to support credit card charges, and (d) specify the appropriate disciplinary action for misuse of credit cards.  Such policies and procedures should prohibit the use of official credit cards for personal purposes and provide strict disciplinary action for any such personal use.


We received responses (see Appendix 2) from all seven agencies to which recommendations were addressed.  In most cases, the agencies concurred with the recommendations and indicated that corrective actions either had been or would be taken.

The response from the University of the Virgin Islands noted that the Universityï¿½s current President did not use official credit cards to upgrade airline travel to first class.  We agree and have adjusted the body of the report to reflect this information.  The Universityï¿½s response also pointed out that the University had only 477 full-time employees, whereas we had stated in Appendix 1 that the University had more than 1,000 employees.  Our number included part-time employees, and we have modified Appendix 1 accordingly.

Finally, the Universityï¿½s response stated that the report would be used to ï¿½refineï¿½ policies regarding the use of credit cards but did not specifically address the corrective actions contemplated by Recommendations 4 and 5.  Based on all responses received, we consider Recommendations 1, 2, 3, 6, 7, 8, 9, 10, and 11 to be resolved and implemented, and Recommendations 4 and 5 to be unresolved (see Appendixï¿½3).





APPENDIX 1 ï¿½ SUMMARY OF AUDIT COVERAGE


ï¿½Agency
Number of 
Number of
Credit Card Charges
Audited
Employees
Cardholders
Audited
Other
Unsupported
Business







WTJX1 
35ï¿½ï¿½ï¿½ï¿½
2ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½
$300,000ï¿½ï¿½ 
$120,8902ï¿½
$125,160ï¿½ï¿½
$53,950ï¿½ï¿½
WAPA
601ï¿½ï¿½ï¿½ï¿½
23ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½
492,500ï¿½ï¿½
59,8102ï¿½
148,110 ï¿½
284,580ï¿½ï¿½
UVI
477ï¿½ï¿½ï¿½ï¿½
8ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½
407,000ï¿½ï¿½
5,3003ï¿½
56,000ï¿½ï¿½
345,700ï¿½ï¿½
VIPA
317ï¿½ï¿½ï¿½ï¿½
4ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½
1,200,000ï¿½ï¿½
3,8704ï¿½
0ï¿½ï¿½
1,196,130ï¿½ï¿½
VIHFA
20ï¿½ï¿½ï¿½ï¿½
3ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½
98,350ï¿½ï¿½
0ï¿½ï¿½
10,720ï¿½ï¿½
87,630ï¿½ï¿½
EDA
26ï¿½ï¿½ï¿½ï¿½
4ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½
59,570ï¿½ï¿½
1202ï¿½
0ï¿½ï¿½
59,450ï¿½ï¿½
GERS
75ï¿½ï¿½ï¿½ï¿½
2ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½
494,360ï¿½ï¿½
0ï¿½ï¿½
0ï¿½ï¿½
494,360ï¿½ï¿½
Hospital
530ï¿½ï¿½ï¿½ï¿½
2ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½
92,600ï¿½ï¿½
0ï¿½ï¿½
0ï¿½ï¿½
92,600ï¿½ï¿½







Totals
2,081ï¿½ï¿½ï¿½ï¿½
48ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½
$3,144,380ï¿½ï¿½
$189,990ï¿½ï¿½
$339,990ï¿½ï¿½
$2,614,400ï¿½ï¿½
 __________
Notes:
   1 WTJX amounts represent Federal funds.  All other amounts represent Virgin Islands funds.
   2 These charges represent personal charges totaling $180,820.
   3 These charges represent airline upgrade and club membership fees.
   4 These charges represent gifts presented to departing board members and retiring employees.


APPENDIX 2 ï¿½ RESPONSES TO DRAFT REPORT

 
Appendix 2
Page 2 of 14


Appendix 2
Page 3 of 14


Appendix 2
Page 4 of 14


Appendix 2
Page 5 of 14



Appendix 2
Page 6 of 14


Appendix 2
Page 7 of 14


Appendix 2
Page 8 of 14


Appendix 2
Page 9 of 14


Appendix 2
Page 10 of 14


Appendix 2
Page 11 of 14


Appendix 2
Page 12 of 14



Appendix 2
Page 13 of 14



Appendix 2
Page 14 of 14



APPENDIX 3 ï¿½ STATUS OF RECOMMENDATIONS


Finding/Recommendation
        ï¿½    Referenceï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½             

1 to 3
6 to 11


4 to 5








         Statusï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½         

Resolved and implemented.

Unresolved.







                       ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½Actionï¿½Requiredï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½               

No further response required.


Reconsider the recommendations and provide a response that includes a plan of action, including target dates and titles of the officials responsible for implementation of corrective action.























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1 The 2002 financial statement audit also had findings addressing the personal charges, but the report had not been provided to the Board prior to our audit.
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This draft report is exempt from disclosure to the public under the Freedom of Information Act, 5 U.S.C. ï¿½ 5525.  For this reason, recipients may not show or release its contents for purposes other than official review and comment.


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