Guahan Academy Charter School posted a clean audit for fiscal year 2025, but independent auditors identified several internal control deficiencies that could affect financial reporting accuracy.
Ernst & Young LLP issued an unmodified opinion on the school’s financial statements, while citing three significant deficiencies and additional concerns in a management letter.
The school ended FY2025 with a net position of $3.4 million, a 25% increase from $2.7 million the prior year. Total revenues declined 7% to $6.5 million, driven largely by drops in other revenue and per-pupil allocations. Expenses also fell 10% to $5.9 million, primarily due to reduced contractual services and operational costs.
About 69% of the school’s general fund comes from Government of Guam appropriations. The school reported $6 million in appropriations, with $4.5 million expended, leaving a $1.5 million balance.
Enrollment dropped significantly to 625 students by year’s end, down from 785, attributed to off-island migration, transfers and staffing challenges.
Auditors flagged issues with how the school recognized grant revenues, recorded compensated absences, and accounted for expenses tied to services not yet rendered. The report also cited weaknesses in bank reconciliation processes and the treatment of in-kind contributions, which may overstate revenues and expenses.
The school continues to occupy government-owned facilities in Tiyan at no cost, despite an expired lease agreement, while pursuing plans for a new campus in Mangilao.
Federal funding increased to $892,000, supported by grants tied to disaster recovery, nutrition programs and service initiatives. Reimbursements related to Typhoon Mawar are expected to continue into FY2026.