The Office of Public Accountability has released the Guam Community College’s (GCC) financial statements, showing GCC closed FY 2020 with a decrease in net position (net loss) of $1.2 million (M), a decrease from FY 2019 net loss of $2.5M.
In FY 2020, GCC’s operating and nonoperating revenues totaled $35.7M. This increase of $1.5M from FY 2019 is largely due to GovGuam appropriations. Operating expenditures increased by $192K to $36.9M in FY 2020 due in part to the GASB 75 adjustments to GCC’s Institutional Support, and Scholarships and Fellowships functions.
Due to uncertainty surrounding the duration of the COVID-19 pandemic, GCC is unable to reasonably estimate its financial impact. In March 2020, the governor issued Executive Order 2020-03 ordering the closure of all non-essential GovGuam offices, which included all Guam schools. This led to the decline in enrollment. Initially, all courses were conducted through distance education (online). Efforts to increase enrollment are ongoing, including promoting bootcamps to support the economic development of our island.
According to OPA, GCC continued to be heavily dependent on GovGuam appropriations.
A majority of the $35.7M in revenues included: GovGuam appropriations of $21.2M (59%); federal grants and contracts of $10.4M (29%); net student tuition and fees of $1.5M (4%); and other revenues of $1.9M (5%).
GovGuam appropriations contributed over half of GCC’s revenues. GCC continues to rely heavily on GovGuam to pay for personnel costs of the GCC campus, the six high schools, and the post-secondary programs. It includes funding Public Law 31-99, which mandated GCC to provide career and technical education programs in Guam’s public high schools.
In FY 2020, net student tuition and fees decreased by $1.0M due to changes in student enrollment, head and credit counts, unfavorable economic conditions, and new programs implemented by GCC to reduce the need for developmental courses and placement tests. Federal grants and contracts slightly decreased by $523K due to a reduction in sub-grant transactions during the year, especially with the FEMA sub-grant and expiration of the Area Health Education Center grant.
Lastly, auxiliary enterprises decreased by $1.0M to $760K in FY 2020 due to the reduction in GCC’s bookstore sales and contract expiration of the public health child care development fund in FY 2019.