Easy to check which is actually used. When apparently connected to WiFi, go to:
Settings > Wireless & networks > Data usage
Make a note of your present usage.
Download a large file or do some surfing, anything that will use a significant amount of data.
Go back to Data usage and check your usage again. If no change, then you were using WiFi. WiFi does not count in Data usage stats. If Data usage increased, then of course you were not using WiFi.
The phone should be switching between WiFi and mobile data automatically, with WiFi taking preference over mobile data. If not it could be the SIM card, APN settings or even the phone. I'd try contacting AT&T for heo next.