Guam – The University of Guam has issued the following release on the audit of its financial statements released by the OPA today.
READ the UOG statement on the audit of its financial statement below:
UOG’s FY 2013 audit showed a financially stable organization with record levels of student enrollment and credit hours. The University reported a $3.5 million surplus from strong endowment investment earnings and tight financial management of expenses. Revenues were $95 million, less than last year as the $18 million of federally funded ARRA projects have been completed. Auditors Deloitte & Touche gave the University a clean (unqualified) audit opinion on the financial statements. There were five compliance findings and $23,000 of questioned costs, which represent only 0.06% of UOG’s $36 million federal grant expenditures. Corrective actions that address the findings have begun.
“We are focused on our mission and role in the social, economic and political development of our region. With the support of the Guam Legislature and Governor, the University has held tuition rates the same for five years. This is unprecedented among universities and shows the community’s commitment to higher education access and affordability for Guam’s students”, said President Robert Underwood. “In addition we are working hard to move the University from good to great. A process of program prioritization and resource allocation is well underway to realize our potential to be a sustainable university with great programs. We are evaluating all academic and administrative programs based on their relationship to the core mission, financial performance, market demand and quality.”
Senior Vice President Anita Borja Enriquez added, “The University is the Natural Choice for Guam students. Fall’13 enrollment was a record 3,853 students. 503 undergraduate and graduate degrees were conferred in academic year 2012-13. When our Fall’13 graduates are included, Triton alumni now number 14,700. They add tremendous value to the professional backbone, service, and leadership of our island, the region, and beyond.“
“Our results and financial trends evidence the University’s performance and stability. There has been a reasonable financial surplus in ten of the last eleven years. We have a record of clean audits,” said Vice President of Administration and Finance David O’Brien. “Our focus on academic quality, student success, and institutional sustainability is evidenced by primary accreditation from WASC and secondary accreditation for the professional schools. After reviewing our 2013 report, WASC praised the University for our financial improvements, collaborative campus culture, presidential leadership, open communications and efforts in enrollment management, program review, and assessment.”
Other FY 2013 audit highlights include:
* There were $39 million of total grants and contracts. They include awards for student financial aid, developmental disabilities, cancer research, alternative energy, green projects and building renovation. This is a decrease from last year, as the ARRA grants have been completed and they are not reflected in FY 2013.
* Operating expenses decreased by $0.5 million (adjusted for FY 2012 ARRA). Costs were held in check even with increased enrollment, growth in grant spending, stepped-up facility maintenance, salary increments, and utility and retirement rate hikes.
* Auditors Deloitte & Touche identified five non-compliance findings and $23,000 of questioned costs from among the $36M of federal grants and contracts. The University concurs with their findings and has taken steps to strengthen its controls related to: 1) timely return of federal student aid funds following student withdrawal; 2) improved inventory control; 3) improved time & effort reporting; 4) better documentation of federal matching funds; and 5) adherence to sole source regulations.
UOG has 140+ grants from 14 federal agencies with some of the grants having several awards. To ensure that the University’s grants remain well managed, continuous improvement in grants management, training, compliance and monitoring is a high priority.