A federal compliance audit of the Government of Guam found $22.6 million in questioned costs for fiscal year 2024, with auditors issuing their harshest possible opinion on five major federal programs and the report arriving nearly 300 days past its statutory deadline.
Auditors from Ernst & Young issued disclaimer opinions on five major federal programs, meaning GovGuam could not demonstrate whether federal funds were used in compliance with federal requirements due to insufficient documentation. A disclaimer does not indicate misuse of funds but reflects a failure to produce adequate records.
The management letter accompanying the audit identified deep structural problems within the Division of Accounts, noting that opening fund balances were not reconciled with prior year figures, that a "significant number of post-closing adjusting entries were recorded by the Division of Accounts management after provision of the initial unadjusted trial balance," and that school-financed purchase obligation balances were overstated by $9.6 million. Auditors also found a $16.7 million understatement in unrecorded Medicaid and Medically Indigent Program liabilities and noted long-term bond obligations were not adjusted to reflect $34.7 million in principal repayments.
The Department of Administration led all agencies with 31 findings and $11.8 million in questioned costs, followed by the Department of Public Health and Social Services with 10 findings and $10.8 million. Across all agencies, 53 total findings were recorded, 18 of which were repeats from prior years.
The FY 2024 audit carried a statutory deadline of June 2025 but was not issued until April 24 — 298 days late, compared to just 20 days late in FY 2021.
DOA attributed delays to a shortage of qualified accountants, increased federal funding volumes and the late completion of component unit audits. GovGuam, Ernst & Young and the U.S. Department of Interior have begun discussions to improve timeliness.
The full report is available at guamopa.org.