West Virginia audit reveals compliance issues in 54 out of 97 state departments
February 10, 2025 | 2025 Legislature WV, West Virginia
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On February 10, 2025, the Post Audits Subcommittee of the West Virginia Legislature convened to discuss the findings and processes surrounding the auditing of state funds. The meeting highlighted the importance of compliance with state regulations and the ongoing efforts to ensure that departments utilize state funds appropriately.
The Legislative Auditor outlined the stringent requirements for departments receiving state funds, emphasizing that these funds must be kept separate from other sources. Departments are mandated to retain itemized receipts and documentation for five years to support their expenditures. The auditor explained that audits are conducted to verify compliance with allowable use categories as defined by West Virginia Code. Departments are selected for audits based on a risk assessment process, which considers various factors, including bank statement submissions.
During the meeting, it was noted that approximately 80 to 90 department audits are conducted annually, with results compiled into a comprehensive report for public review. In 2024, the audits covered 97 departments, amounting to over $10.9 million in state funds. Notably, 43 of these departments were found to be fully compliant, marking a 15% increase in compliance compared to the previous year. However, 54 departments exhibited non-compliance issues, which included unallowable expenditures and commingled funds, totaling around $200,000.
The auditor reassured that any departments facing compliance issues would have the opportunity to challenge findings within a specified timeframe. The meeting concluded with a commitment to transparency, as findings that result in withheld state funding will be communicated to the Treasurer and redistributed to compliant departments.
This session underscored the ongoing efforts of the West Virginia Legislature to maintain accountability in the use of state funds, ensuring that taxpayer money is spent in accordance with established laws and regulations. The increase in compliance rates reflects a positive trend, although the presence of non-compliance issues highlights the need for continued vigilance and support for departments in adhering to financial guidelines.
The Legislative Auditor outlined the stringent requirements for departments receiving state funds, emphasizing that these funds must be kept separate from other sources. Departments are mandated to retain itemized receipts and documentation for five years to support their expenditures. The auditor explained that audits are conducted to verify compliance with allowable use categories as defined by West Virginia Code. Departments are selected for audits based on a risk assessment process, which considers various factors, including bank statement submissions.
During the meeting, it was noted that approximately 80 to 90 department audits are conducted annually, with results compiled into a comprehensive report for public review. In 2024, the audits covered 97 departments, amounting to over $10.9 million in state funds. Notably, 43 of these departments were found to be fully compliant, marking a 15% increase in compliance compared to the previous year. However, 54 departments exhibited non-compliance issues, which included unallowable expenditures and commingled funds, totaling around $200,000.
The auditor reassured that any departments facing compliance issues would have the opportunity to challenge findings within a specified timeframe. The meeting concluded with a commitment to transparency, as findings that result in withheld state funding will be communicated to the Treasurer and redistributed to compliant departments.
This session underscored the ongoing efforts of the West Virginia Legislature to maintain accountability in the use of state funds, ensuring that taxpayer money is spent in accordance with established laws and regulations. The increase in compliance rates reflects a positive trend, although the presence of non-compliance issues highlights the need for continued vigilance and support for departments in adhering to financial guidelines.
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