Holley-Brown said Frontier doesn't bill the state until the company finishes fiber construction at each location.
The company also hasn't submitted any invoices for the Green Bank observatory project, even though it has completed four of five segments.
"A large proportion of the Frontier fiber builds has been invoiced, and some of those are being processed for payment," Holley-Brown said. "However, . . . they do not submit the invoice until all work on that specific build is completed."
West Virginia had an initial Feb. 13 deadline to spend the $126.3 million or risk having to return any leftover funds. However, state officials requested -- and received -- an extension from the federal government. The stimulus funds now must be spent by September.
In West Virginia's application for the stimulus funds, state officials said Frontier would build 900 miles of fiber. The project was scaled back after the state discovered that many sites scheduled to receive high-speed fiber already had it.
Last year, a consulting firm hired by Gov. Earl Ray Tomblin's administration issued a memo that criticized Frontier for "inadequate project documentation" that fails to comply with federal grant rules. Tomblin's office kept the memo under wraps for months.
The consultants -- ICF International of Vienna, Va. -- called on Frontier to take "corrective actions" and advised state officials not to reimburse Frontier for "current invoices and design."
Last month, Tomblin aides said they met with Frontier executives, and the company now submits proper invoices and documentation. The state also has "a process in place" to ensure that Frontier doesn't over-bill, according to Tomblin's office.
Frontier executives have called ICF's report "worthless."
Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.