The Guam Waterworks Authority has received an unmodified audit opinion for the thirteenth consecutive year, with independent auditor Ernst & Young LLP finding no significant deficiencies in its fiscal 2025 financial statements.
The audit reported a $20.1 million increase in GWA's net position, lifting it to $358.2 million. The agency credited lower operations and maintenance costs, reduced pension liability, and higher revenue and grant funding, even as it took on more revenue bond borrowing.
Total operating revenues climbed 4.3% to $135.8 million, driven by a rate adjustment approved by the Guam Public Utilities Commission. EY also recognized GWA as a low-risk organization and found its statements free of material misstatements.
"Providing and sustaining reliable water and wastewater services requires financial integrity and prudence," said General Manager Miguel C. Bordallo.
Auditors flagged two administrative compliance issues tied to a U.S. Department of the Interior grant program, questioning about $637,000 in spending. GWA lacked complete records showing two vendors were screened against a federal list of ineligible contractors, and eight federally funded electric vehicles were missing from a required equipment tracking system. The authority said both matters have since been corrected and it is working with the Interior Department to formally close them out.
During the year, GWA secured $266.5 million in revenue bonds and $16.2 million in federal grants for infrastructure upgrades. It continues to meet its 2024 Partial Consent Decree obligations with the U.S. EPA and standards under the Safe Drinking Water and Clean Water Acts, with new treatment investments targeting PFAS and dieldrin. GWA aims to complete a 2011 court order by Dec. 31, 2026, placing its final water reservoir into service.