DOA Short Cash; Guam DOE Has to Draw From Reimbursement Funds to Cover Payroll

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Guam – The Guam Department of Administration was so short of cash Friday that it was unable to transfer any funds into Guam DOE’s account for payroll.

GDOE Deputy Superintendent of Finance Taling Taitano told the K-57 Breakfast Show this morning that in order to make payroll last Friday, they had to dip into the 3erd Party’s Federal Reimbursement fund, which was meant to reimburse vendors who have been waiting for months to be paid for the services they have provided to the island’s school system.

“My understanding is that we did not get any transfers on Friday,” from DOA said Taitano.

Taitano said they drew down $4.9 million from the reimbursement fund which enabled them to make their “net” payroll. GDOE’s gross payroll is around $6 million she said.  That leaves them short $1.1 million to cover payroll deductions which include health benefits and tax payments.

Taitano added that she thinks “its going to be a real juggling act for the new administration to make sure that there is sufficient cash to pay all the obligation that the Government owes.”