VI Lawmakers Slam 20-Year $2.5M Annual Compliance Contract as Ineffective

After spending $42.5 million on third-party oversight, lawmakers press McConnell & Jones on delays in meeting federal requirements for Education, Health, Human Services, and Property & Procurement, demanding accountability and a clear timeline

After almost two decades, the U.S. Virgin Islands remains locked into a compliance agreement with the U.S. Department of Education as a result of the territory being designated a “high-risk grantee.” As a result of this designation and the need to implement corrective measures to improve standing with the U.S. Department of Education, a third-party fiduciary agent (TPFA) has been appointed to oversee the compliance requirements for federal grants administered to the local Department of Education. McConnell & Jones, LLP currently holds this responsibility, providing oversight to the V.I. Departments of Education, Health, Property and Procurement, and Human Services as part of the U.S. DOE compliance agreement.

However, lawmakers, during a meeting of the Committee on Budget, Appropriations, and Finance on Wednesday, were particularly concerned about when the need for the third-party fiduciary would be eliminated. “We have spent about $42.5 million on this compliance agreement,” committee chair Senator Donna Frett-Gregory announced. Costs are expected to continue rising as the GVI works within the strict arrangement, which, according to the language of a 2002 compliance agreement, was originally intended to last only three years.