OPA: Department of Chamorro Affairs Loses Money Again, Gets “Qualified Opinion”

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Guam – For the second year in a row the Department of Chamorro Affairs lost money and the auditors have issued a qualified opinion on the agencies handling of its assets.

 

The latest audit to be released by the Office of Public Accountability reports a decrease in net assets of $37,824 dollars.

The Department of Chamorro Affairs gets 85% of its funding from Chamorro Village leases. The rest comes from book sales , grants and donations. All categories of revenues declined but the most significant declines were in the grant, book sale and donation categories.

READ the Department of Chamorro Affairs Audit Highlights

Expenses also declined by $144K, from $393K to $249K. 44% of that decline was due to the closure of the Friday Ocean Night Market at the Chamorro Village which saved $63K in security, maintenance and janitorial service costs.

But the savings were offset by increased entertainment costs related to the Chamorro Village.

“Meals and entertainment costs rose by $43K, from $62K to $104K. During October through December 2010, food for various events amounted to $42K, which is not considered an appropriate use of DCA funds.”

The independent audit was conducted by Eide Baill.

Their qualified opinion had to do with “the inventory balance and book … of sales” which they found had “insufficient support”  in 2010.

In addition, the auditors also identified 4 findings and they had to make 8 adjustments “to correct errors” made by the Department of Chamorro Affairs which resulted in the loss of $36,173.

READ the Auditors “Letter to Those Charged With Governance”

The auditors issued 4 findings, 2 of which are “recurring material weaknesses.”

* recurring lack of an internal control system designed to provide for the preparation of financial statements

* recurring lack of accompanying notes to the financial statements.

* noncompliance related to procurement

* non compliance related to travel policy

There were fewer adjustments,  8 in FY 2011 compared to 16 in FY 2010,  which the auditors attributed to having an Administrative Services Officer who is knowledgeable of their day-to-day activities.