Public auditor highlights $584K in questionable costs for GDOE

Why was the Guam Department of Education’s Fiscal Year 2023 financial audit released so late? The answer, according to the island’s public auditor, reveals a critical need for staffing to help GDOE meet its obligations.

$584,000  - that’s an amount flagged in questionable costs in the financial highlights by the Office of Public Accountability for the Guam Department of Education’s Fiscal Year 2023 financial audit.

GDOE got clean opinions on financial statements and compliance for economic, social, and political development of the territories and the Head Start major federal programs from independent auditors but received a qualified opinion on all other major federal programs.

Among those the findings? Auditors identifying six material weaknesses and seven significant deficiencies in GDOE's federal program compliance.

Public auditor BJ Cruz told KUAM News, “We should know that all those programs have had questioned costs–have major problems with it that the department needs to address.”

But could there be even more in question? Cruz says maybe, as the highlights only scrutinize a sampling of a possibly bigger picture. He added, “Usually, my financial highlights are either one or two pages. You’ll note that this time, the financial highlights were 11 pages.” 

It’s why GDOE has been strongly recommended to bolster their staffing. Said Cruz, “I have been telling the Legislature every time I appear before them the Department really needs help getting accountants and auditors who are competent and understand federal programs and government accounting and help the department meet its obligations.”

The OPA document noting GDOE experienced increased instability and turnover in just one fiscal year. With critical leadership positions still unfilled.  “Their comptroller position was filled, then it was vacant, and you can see in the highlights when those months were–they don’t have a comptroller as of today," he said.

The public auditor foreseeing the potential for the USDOE to mull of over putting a third-party or receiver back in place once they get wind of the audit.

To note, GDOE disagreed with seven noted conditions relative to the period of performance: procurement, suspension, and debarment; reporting; allowable costs/cost principles; matching, level of effort, earmarking, and reporting. GDOE is in the process of implementing corrective actions to prevent repeat findings in future audits.