The Office of Public Accountability has released the Government of Guam’s fiscal year (FY) 2019 single audit reports on internal control over financial reporting and compliance as well as a report on GovGuam compliance for each major federal program.
Independent auditors Deloitte & Touche, LLP rendered qualified opinions on two of the six major federal programs: the Supplemental Nutrition Assistance Program (SNAP) and Economic, Social and Political Development of Territories. The remaining four received unmodified (clean) opinions. According to OPA, this is an improvement from the prior year’s qualified opinions on four major federal programs.
OPA said the qualified opinions were due to the ineffective monitoring of compliance with the Automatic Data Processing (ADP) and Electronic Benefit Transfer (EBT) systems’ requirements, non-compliance with bi-annual physical inventory, and untimely reconciliation of capital assets.
The auditors also identified eight findings in internal controls. FY 2019 findings resulted in questioned costs totaling $1.1 million, which increased from prior years’ unresolved questioned costs of $549,000 to $1.7 million.
In addition, the auditors issued a separate management letter identifying 21 findings for nine GovGuam agencies. The findings significantly increased by 17 from four in the prior year.
With the highest number of findings, the Department of Administration (DOA) was recommended to: 1) hire experienced personnel to assist in the scrutiny of asset and liability accounts; 2) investigate the validity of recorded transactions; 3) perform timely reconciliations; 4) ensure proper recording of all transactions; and 5) coordinate with responsible agencies on the submission of required reports, collections of accounts, and seeking necessary legislation.
Other agencies were advised to perform timely recording of transactions, perform reconciliation of accounts, update documentation, and timely submit financial information to DOA. It was also recommended that the Department of Revenue and Taxation perform an annual analysis of income tax provision and provide timely tax credit information to DOA.