Thursday, 11 May 2017

Audit reveals Department of Chamorro Affairs closed FY16 with $180K loss

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An audit from the Office of Public Accountability reveals The Department of Chamorro Affairs closed FY2016 with a net loss of $180K.

Guam- An audit from the Office of Public Accountability reveals the Department of Chamorro Affairs closed FY2016 with a net loss of $180K. Additionally, the loss is significantly higher compared to the $50K loss in the previous year.

Although the OPA says auditors rendered a clean opinion on DCA, they noted that 11 adjustments will need to be made in order to correct errors they believe cumulatively decreased the change in loss by $260K.

The OPA also notes that at least two major events during the year skewed DCA’s normal operations including FESTPAC and the opening of the Guam Museum. 

In order to understand the loss, the OPA broke the department down to six organizations. All six identified in the audit all suffered a significant deficit.

For example, resurgence in expenditures for the two aforementioned events coupled with the decrease in revenue for some of the organizations played major roles in the vicious cycle of loss.

Take FESTPAC, the festival of the pacific arts that hosted several visiting countries here last May. According to the audit, FESTPAC expenses amounted to $3.1 million, but a balance of $210K has yet to be paid for some expenditure are still awaiting clearance from the Attorney General’s Office.  

In March of last year, another major event took place: the official opening of the Guam Museum. Due to account issues, DCA’s vendor received all fees.  

In addition, at least two factors plaguing DCA were identified. These two are the purchases and payables not immediately recorded upon receipt of purchase as well as the outstanding checks and deposits in transit over three months old.

Overall, independent auditors Ernst and Young LLP rendered a clean, unmodified opinion of the department’s financial statements.

 

Click on the attached documents to read more on the audit. 

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