The Government of Guam's Fiscal Year 2023 financial audit is in, and while there’s some good news, major concerns remain.

Independent auditors Ernst & Young gave GovGuam a clean opinion on its financial statements, but nine federal programs received qualified opinions due to compliance issues.

The audit also found 34 deficiencies, including $15.5 million in questioned federal costs.

Among the key concerns: Procurement violations, reporting failures, and lack of oversight on subrecipient funds. 

Auditors flagged $5 million in procurement issues, $9.5 million in sub-recipient monitoring failures, and missing financial records across multiple agencies.

GovGuam also failed to properly report $183 million in federal food assistance transactions, and its special revenue funds ran a $18 million deficit.

And finally, while GovGuam and its line agencies’ expenditures of federal awards have decreased from about $750 million in FY 2022 to $688 million in FY 2023, it did not qualify as a low risk auditee.