Interior Support Will Help Virgin Islands to Be “Audit Ready”

WASHINGTON – Doug Domenech, U.S. Department of the Interior Assistant Secretary for Insular and International Affairs, this week provided a $567,500 grant to U.S. Virgin Islands Governor Kenneth Mapp and the USVI Department of Finance to help the territory be prepared for financial audits in relation to capital assets and federal accounts receivable beginning in FY 2017 audits.  The government had been working to address these concerns when Hurricanes Maria and Irma effectively necessitated a shift in governmental priorities to restore and rebuild and further heightened the need for improved readiness in light of increased federal assistance.

“Good governance and sound fiscal management must go hand-in-hand for any government to be strong and resilient,” said Assistant Secretary Domenech.  Both Secretary Zinke and I believe this is critical in our American democracies.  Being “audit-ready” will help improve assessment, management, implementation of programs, and use of funds in the territory, whether federal or local,” continued Domenech.

Flexibility of funding provided through the Office of Insular Affairs allows Interior to target this very specific audit support to the U.S. Virgin Islands government.  Funds will be used to 1) assess capital assets impairment, 2) improve documentation of capital assets, and 3) improve the federal accounts receivable process for the territory.  Because capital assets in the Virgin Islands were severely impacted by the hurricanes, the government expects to show an impairment in the fiscal year 2017 audit.  This project also provides support so that capital assets can be valued accurately and the data will assist in the proper oversight of Federal funds flowing to the USVI post hurricane. 

The Assistant Secretary Insular and International Affairs and the Office of Insular Affairs carry out the Secretary’s responsibilities for the U.S. territories of Guam, American Samoa, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands. Additionally, OIA administers and oversees Federal assistance under the Compacts of Free Association to the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau. OIA supports the Secretary's mission of Fulfilling Trust and Insular Responsibilities through balancing efforts and limited resources towards stronger economic and health capacities, and fiscal accountability in the U.S. insular areas.