A job-training agency that owes service providers almost $1 million is suing its auditor, claiming the firm didn't catch the sloppy bookkeeping that led to its financial mess, according to a lawsuit filed Thursday in Cabell Circuit Court.
A job-training agency that owes service providers almost $1 million is suing its auditor, claiming the firm didn't catch the sloppy bookkeeping that led to its financial mess, according to a lawsuit filed Thursday in Cabell Circuit Court.
The Region 2 Workforce Investment Board - which funds social service agencies, school boards and technical schools in seven counties across southwestern West Virginia - claims Trainer & Wright Co. committed negligence and malpractice.
The suit seeks unspecified compensatory damages, plus attorney fees.
Last June, Region 2 WIB officials told their funding recipients they couldn't afford to reimburse them for contracts during the 2006-07 fiscal year. Some groups that received money from the board laid off staff, and others cut programs.
In September, Region 2 WIB announced it owed $1 million - the culmination of several years of unpaid bills
Trainer & Wright, a Huntington firm, had audited the agency annually since 2002, according to the lawsuit. During the same time period, the agency's financial agent did not process invoices, which led to the money problems, according to the lawsuit.
The auditors "failed to discover errors in the books, records and financial statements, failed to discover the malfeasance and misfeasance of the fiscal agent, and failed to independently verify the financial statements, books and records of the Plaintiff," the complaint states.
No one from Trainer & Wright returned a message left Friday afternoon seeking comment.
Region 2 WIB is one of seven investment boards across the state that receive federal funding under the federal Workforce Investment Act of 1998. The region covers Boone, Cabell, Lincoln, Logan, Mingo, Putnam and Wayne counties. The board is made up of business and civic leaders, local elected officials and community members.
According to the lawsuit, Region 2 WIB has been unable to pay back its debts because it cannot use new federal money to pay for previous years' obligations.
To contact staff writer Alison Knezevich, use e-mail or call 348-1240.
A job-training agency that owes service providers almost $1 million is suing its auditor, claiming the firm didn't catch the sloppy bookkeeping that led to its financial mess, according to a lawsuit filed Thursday in Cabell Circuit Court.
The Region 2 Workforce Investment Board - which funds social service agencies, school boards and technical schools in seven counties across southwestern West Virginia - claims Trainer & Wright Co. committed negligence and malpractice.
The suit seeks unspecified compensatory damages, plus attorney fees.
Last June, Region 2 WIB officials told their funding recipients they couldn't afford to reimburse them for contracts during the 2006-07 fiscal year. Some groups that received money from the board laid off staff, and others cut programs.
In September, Region 2 WIB announced it owed $1 million - the culmination of several years of unpaid bills
Trainer & Wright, a Huntington firm, had audited the agency annually since 2002, according to the lawsuit. During the same time period, the agency's financial agent did not process invoices, which led to the money problems, according to the lawsuit.
The auditors "failed to discover errors in the books, records and financial statements, failed to discover the malfeasance and misfeasance of the fiscal agent, and failed to independently verify the financial statements, books and records of the Plaintiff," the complaint states.
No one from Trainer & Wright returned a message left Friday afternoon seeking comment.
Region 2 WIB is one of seven investment boards across the state that receive federal funding under the federal Workforce Investment Act of 1998. The region covers Boone, Cabell, Lincoln, Logan, Mingo, Putnam and Wayne counties. The board is made up of business and civic leaders, local elected officials and community members.
According to the lawsuit, Region 2 WIB has been unable to pay back its debts because it cannot use new federal money to pay for previous years' obligations.
To contact staff writer Alison Knezevich, use e-mail or call 348-1240.
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