Audited Basic Financial Statements for the year ended September 30, 2023, have been completed and may be downloaded from the Department of Administration website da.doa.guam.gov/reports or the Office of Public Accountability (OPA) website opaguam.org/resources/. The auditors, Ernst & Young, LLP, issued an unmodified (clean) report on the financial statements.
The Government’s Discussion and Analysis (Unaudited) can be found on pages 5-28, and this provides an overview of the important factors that impacted the financial results from Fiscal Year 2023. The auditors also prepared and issued Reports on Compliance (required by the federal government to ensure grant compliance), a Management Letter (regarding internal control), a Management Letter on IT Environment (regarding internal control for information technology), and the Auditor’s Communication with those charged with Governance. These reports are required by Generally Accepted Accounting Principles (GAAP), General Accepted Auditing Standards (GAAS), and Government Auditing Standards (GAS).
The financial statements report a surplus of $59.8 million in the General Fund, the chief operating fund of the Government of Guam, and a Governmental Fund, which uses the modified accrual basis of accounting, an increase of $30 million over the preliminary results published on October 29, 2024. As noted, much of the surplus has subsequently been appropriated by legislation, and these appropriations will be reported as expenditures in Fiscal Year 2024 and thereafter. On a government-wide basis, which incorporates all assets and liabilities, the primary government reported a surplus of $78.5 million and component units a deficit of ($12.5) million, driven by losses at Guam Memorial Hospital Authority (GMHA).
“The completion of our Fiscal Year 2023 audit reaffirms our administration’s commitment to transparency and fiscal responsibility. The financial surplus reported is a testament to our prudent financial management and dedication to strengthening Guam’s economy. As we move forward, we will continue working to ensure that these funds are invested wisely and equitably for the benefit of our people,” said Governor Lou Leon Guerrero.
Lt. Governor Josh Tenorio added, “Our administration has worked tirelessly to stabilize government finances, and these results reflect the resilience of our economy and the effectiveness of our fiscal policies. While we acknowledge the ongoing challenges at GMHA, we remain committed to making the necessary investments in our healthcare system and other critical services. The implementation of the new Guam Financial Management Information System will further enhance our ability to manage public funds with accuracy and accountability.”
Completion of audit reports was affected by delays to the Fiscal Years 2021 and 2022 reports, the change of auditors from Deloitte & Touche LLP to Ernst & Young, LLP, and the cumulative effect from all Government units reported in the financial statements. The contract for the fiscal year 2023 audit was finalized in April 2024.
The new financial reporting system, the Guam Financial Management Information System, was implemented in February 2024. Full benefits of this system will be incorporated into financial reporting in Fiscal Year 2025.
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