The Department of Public Health and Social Services is disputing federal audit findings that flagged more than $6.2 million in questioned costs tied to the Child Care and Development Fund, saying its Division of Children's Wellness provided all required documentation on time and strongly disagreeing with the conclusions.
In a formal response released Friday, DPHSS Director Theresa C. Arriola said the department's Bureau of Child Care Services disagreed with all five findings identified in the FY2024 audit, contending that supporting records were submitted in accordance with audit requests, including additional materials provided in January and February 2026.
The five findings alleged that auditors could not verify whether certain expenditures were allowable, whether 52 of 141 CCDF applicants were eligible for federal funds, whether the department complied with federal spending and reporting requirements, and whether childcare providers met applicable health and safety standards. DPHSS disputed each finding, saying eligibility determinations were conducted in accordance with federal and local requirements, monitoring controls were already in place and all applicable providers were inspected regularly.
On the health and safety finding, DPHSS noted that relative care facilities are exempt from sanitary permits under applicable rules — a clarification it said auditors did not factor into their review.
Arriola said the department's reconciliation process has cleared $1.5 million in questioned costs from pandemic-era and Typhoon Mawar grants, and that a newly established Program Integrity Unit is now rigorously validating expenditures and community sub-grants.
The full FY2024 audit report is available at guamchildcare.com.
