An investigative audit by the Guam Office of Public Accountability (OPA), conducted with the Guam Department of Education’s Internal Audit Office, identified significant deficiencies in the department’s management of textbooks, resulting in approximately $29 million in questioned costs.
The audit found widespread noncompliance with procurement laws, including missing contracts, insufficient oversight, and unsupported sole-source purchases. Investigators reported that 34 of 67 purchase orders reviewed—totaling about $23.9 million in federally funded expenditures—lacked proper procurement documentation.
Auditors also cited excessive textbook purchasing, estimating roughly $7 million in surplus inventory. English textbooks exceeded projected needs by 152%, while high school math books surpassed needs by 87%, suggesting purchases were driven more by available funding than actual enrollment data.
The report highlighted improper disposal practices, including the discarding of textbooks in a landfill without required approvals or documentation, in violation of Guam law governing surplus materials.
Additionally, the audit found major weaknesses in inventory tracking, noting that an existing barcode system was largely unused, increasing risks of waste and loss. Required quarterly reports on instructional materials were also missing, late, or incomplete, and some textbooks were distributed without Guam Education Board approval.
OPA recommended strengthening procurement controls, aligning purchases with enrollment data, improving inventory systems, and ensuring proper reporting and oversight. The Department of Education is required to submit a corrective action plan and implement reforms by the next fiscal year.