The Guam Department of Education received unmodified, or clean, audit opinions on its Fiscal Year 2024 financial statements and on the Consolidated Grant to the Outlying Areas program, while recording a $67.4 million operational surplus.
The FY 2024 audit, conducted by Ernst & Young LLP, resulted in a qualified opinion on GDOE’s other major federal programs. Despite those qualifications, the department reported the largest fund surplus in its history.
According to the audit, GDOE closed FY 2024 with a $34.5 million increase in net position, reflecting revenues exceeding expenses. Total governmental fund revenues, including federal grants, reached $475.1 million, up $97.3 million from the previous year. Officials attributed the increase to higher local appropriations, supplemental and disaster-related funding, lease-back pass-through funds and growth in federal grant revenue.
Local appropriations rose by $20.2 million compared with FY 2023.
Governmental fund expenditures totaled $407.7 million, an increase of $32.8 million year over year. The rise was driven largely by higher contractual services, salaries and benefits, and supply costs, partially offset by reduced spending on equipment and power.
GDOE ended the year with a total fund surplus of $77 million, consisting of a $67.4 million FY 2024 net fund balance and a $9.7 million prior-year surplus. The department said the surplus was primarily the result of shifting locally funded expenditures to the American Rescue Plan grant, preserving local funds for future needs.
The audit identified 12 findings related to financial reporting and federal program compliance, including material weaknesses tied to child nutrition eligibility, special education performance periods and Education Stabilization Fund requirements. Questioned costs totaled $1 million. GDOE disagreed with five findings and said corrective actions are underway.