CHARLESTON, W.Va. — Legislative auditors say the former West Virginia Department of Arts, Culture and History (ACH) was plagued by widespread fiscal and administrative failures prior to its 2025 merger with the Department of Tourism. The findings were detailed in a new Post Audit Division report presented to lawmakers this week.
Audit Manager Adam Fridley told members of the Legislature’s Post‑Audits Subcommittee that the review began as ACH divisions and commissions prepared to be absorbed by Tourism on July 1, 2025, following passage of House Bill 2009. Former Secretary Chelsea Ruby requested the audit after her team began noticing significant issues during the transition.
Auditors confirmed problems across multiple areas, including division‑level fiscal management, cash handling, and asset inventories. Several ACH accounts were found to be over‑encumbered by as much as $2 million, forcing lawmakers to appropriate additional funds. Tourism officials also discovered dozens of grants and contracts that were never properly entered into wvOASIS, creating billing delays and confusion about available balances.
The report also found that ACH failed to collect and remit sales taxes for nearly a decade. After self‑reporting the issue, Tourism agreed to a settlement totaling $122,025. Auditors noted that some locations had stopped receiving notices from the State Tax Department because it appeared no revenue was being collected.
Asset management was another major concern. ACH had not conducted a full inventory since 2020, and no new assets had been entered into wvOASIS for years. The State Museum lacked updated policies for maintaining and tracking historical collections.
Tourism Secretary Kayla Kessinger said her department has been working to correct the inherited problems, implementing stronger budgeting practices, updating collections policies, and adding staff to oversee asset management. Auditors praised Tourism’s efforts and recommended continued improvements to ensure all financial obligations are properly accounted for.
Some lawmakers expressed concern that the issues went undetected for years and were only uncovered because of the merger. They questioned whether existing oversight systems are sufficient to catch similar problems in other agencies.
