A resolution before the 38th Guam Legislature calls for a special investigative subcommittee to examine sweeping deficiencies in the government’s fiscal year 2024 Single Audit, including $22.6 million in questioned costs and widespread compliance failures.
The measure would create a Special Investigative Subcommittee under the Committee on Finance and Government Operations to review findings issued by Ernst & Young LLP and highlighted by the Office of Public Accountability.
Auditors identified 53 findings — 44 tied to federal awards — plus 16 additional cases where costs were undeterminable due to missing documentation. The audit, issued 298 days late, reviewed 16 federal programs totaling more than $604.5 million. Only four received clean opinions, while five drew disclaimers and seven were qualified.
The resolution cites “systemic documentation and procurement failures,” including unsupported expenditures, missing records and repeat violations. Eighteen findings were carried over from prior years.
Among key issues:
$4.6 million in questioned costs tied to procurement violations;
$5.6 million in unsupported pandemic relief spending, including items labeled “miscellaneous” without documentation;
$17 million in Medicaid funds drawn without proof of allowable costs.
The Department of Administration accounted for $11.8 million in questioned costs and 31 findings, while the Department of Public Health and Social Services accounted for $10.8 million and 10 findings.
Auditors also flagged eight material weaknesses, including unreconciled accounts, overstated pension figures and unrecorded liabilities. The rollout of the Guam Financial Management Information System contributed to incomplete data and reporting gaps. GovGuam was classified as a high-risk auditee.
If adopted, the subcommittee — chaired by Sen. Christopher M. Dueñas or a designee — would have subpoena power and 120 days to deliver findings, referrals and reform recommendations. The probe would exclude matters under federal indictment.