The University of Guam has received a clean audit opinion from independent firm Deloitte & Touche with no material weaknesses and no material compliance findings. The Office of Public Accountability has commended UOG on its sixth consecutive year qualifying as a low-risk auditee.
In the FY2020 audit report by Deloitte & Touche, UOG posted a 7% increase in revenues from $95 million in 2019 to $101 million in 2020. However, UOG’s operating expenses also increased by 13%, from $91.1 million in 2019 to $102.7 million in 2020. The report attributed this increase in expenses to new requirements in governmental accounting standards and to the awarding of CARES Act Higher Education Emergency Relief Funds (HEERF) to students.
“A clean audit and six consecutive years as a low-risk auditee are testaments to the university’s dedication to fiscal responsibility and integrity,” said UOG President Thomas W. Krise. “Throughout the pandemic, we have continued to focus on our mission, which has also meant managing additional federal funds through the CARES Act and providing nearly $8 million in direct grant aid and reimbursements to students.”
UOG received $4.5 million in CARES Act HEERF funds in FY20 with 50% going directly to students for emergency financial aid grants and 50% for the institution. Later in the year, UOG received an additional $2.28 million for student aid and $4.67 million for the institution to address costs related to responding to the pandemic, which include student and faculty support for online learning and health and safety protocols for the campus.
Of the $101 million in revenues in FY2020, $36.5 million came from GovGuam appropriations, $33.7 million came from federal grants and contracts, and $13.7 million came from tuition and fees. The remaining $16.1 million came from different sources, such as auxiliary revenue and local contracts.
The report noted that GovGuam appropriations for UOG’s general operations have decreased from $30.7 million in FY18 to $27.6 million in FY19 and FY20 to $25.1 million in FY21.
Despite this decline in appropriations, the report also referenced UOG’s recent economic impact study, which indicated that UOG contributes nearly $40 million in free tax receipts to government revenues — almost $13 million more than what it received in appropriations for general operations in FY19 and FY20.
“The annual decrease in base funding for general operations has posed a significant challenge over the last few years,” Krise said. “Our government and the island receive a significant return on investment from UOG. We believe that the University of Guam is key to the island’s economic recovery from the pandemic, and we are hopeful that our base funding will improve as the island recovers.”
The audit report is available on the Office of Accountability website at www.opaguam.org.