Guam – An audit report from the Office of Public Accountability has outlined the Guahan Academy Charter School’s (GACS) financial statements for fiscal year 2017. In the audit, insufficient funding and a lack of trained staff have raised doubts about the charter school’s ability to continue its operations.
The audit found that as of September 30, 2017, GACS owes five vendors $2.9 million dollars for expenses concerning construction, architectural, engineering costs as well as the procurement of land for its new campus.
At the time of the report’s publication, no alternative sources for funding have been identified to fulfill the school’s liabilities.
According to the report on the school’s internal control and management, issues regarding a lack of trained staff and segregation of duties were found.
In one case, GACS’ procurement officer did not complete their training and failed to obtain the mandatory certification from the Guam Community College. Other GACS employees involved in the procurement process have not gotten certified, as well.
As of September 30, 2017, the charter school’s current liabilities exceed current assets by $3.7 million as GACS has been unable obtain long-term financing related to the purchase of the land ($1.6 million), leasehold improvements to the temporary facility ($2.8 million).
The audit said that GACS being able to continue providing its services is dependent on the success of amending such issues.
GACS is a non-profit, public benefit organization. FY 2017 was the first year OPA has overseen GACS’ financial audit.
GACS has been audited since the charter school was established in 2014, but not in conformance with OPA’s requirements.