by Krystal Paco
Guam - The University of Guam has lost its low-risk auditee designation for this fiscal year because of a single finding within the Student Financial Aid Major Program Cluster. An audit revealed that due to a lack of controls to verify accurate numbers, the university made a misstatement in a submission to the Department of Education.
Auditors also noted there were multiple instances where credit balances were not reimbursed to students within the required 14-day period. The university has taken steps to improve controls in these areas and officials stress that the university is in compliance with the other 100+ grants.
Other than the two findings, UOG had a clean audit and saw net assets increase by $4.5 million. Record student enrollment and federal grants contributed to increased expenses of $6.3 million. The expenses covered 31 new hires, facility upgrades, employee merit increases, and operations and maintenance.
"The University has achieved clean audits and strong financial results over a number of years in a difficult economic and financial environment," said UOG Vice President of Administration and Finance David O'Brien. He also pointed out the importance of local government appropriations to the University's growth, "Without a consistent base of financial support from the government, the University could not have open student admissions or generate federally funded grants. We can do more with more, but recognize the limits of today's financial circumstances."