UOG’s operating expenses increased by $11.6 million in FY 2020

University of Guam (file photo)

The Office of Public Accountability (OPA) has released the University of Guam’s (UOG) financial statements and report on compliance and internal control.

According to the audit, UOG’s operating expenses totaled $102.7 million (M) in FY 2020, a 13% or $11.6M increase from $91.1M in FY 2019. The increase in operating expenses was largely due to the implementation of GASB 75 and awarding of CARES ACT Higher Education Emergency Relief Fund to students.

As a result, the following operating expenses increased: (1) student services by $4.1M or 159%; (2) institutional support by $3.5M or 50%; (3) instruction by $2M or 10%; and (4) research by $1.2M or 8%.

According to OPA, rhese increases were offset by the $918,000 (K) or 10% decrease in scholarships and fellowships and $449K, or 17% decrease in auxiliary enterprises.

In FY 2020, UOG’s Schedule of Expenditures of Federal Awards showed 91 grant activities
totaling $32.6M. The largest federal expenditure was $7.6M for the Pell Grant Program, followed by $5.2M for the Direct Student Loans.

UOG Endowment Foundation

The UOG Endowment Foundation (Foundation) is a legally separate, tax-exempt entity that is a discretely presented component unit of UOG. In calendar year (CY) 2019, the Foundation reported $3.2M in net assets (net income), which is a $4.1M increase compared to its reported net loss of $892K in CY 2018.

The Foundation reported $2.4M in net investment income, which is a $3.3M increase compared to the $828K loss in CY 2018. Revenue from fundraising activities also increased by $377K, going from $200K in CY 2018 to $577K in CY 2019. However, there was
$155K decrease in contributions in CY 2019.

UOG entered into promissory notes with the Foundation in the amount of $1.4 million to pay for the construction of a new water line.

For a more detailed discussion on UOG’s operations, refer to the Management’s Discussion and Analysis or view the reports in their entirety on OPA’s website at www.opaguam.org.