by Sabrina Salas Matanane

Guam - The Office of Public Accountability issued the findings of an audit of the General Fund for Fiscal Year 2011. And according to Guam's public auditor, it should not come as a surprise. An audit may have come up clean, but according to Public Auditor Doris Flores Brooks, ""The bottom line is GovGuam continues to live beyond its means."

Because of the Department of Administration's antiquated system it took auditors nine months to produce this report, which found GovGuam's General Fund collected $56 million more in revenues than FY2010, which is the highest recorded revenue in 14 years, income tax collections also increased by $43 million, gross receipts collection up by another $11 million. But the OPA also noted the FY2011 the General Fund ended with a operational deficit of $47 million, due primarily to an overestimation of budget to actual revenues and unbudgeted items, Such as $4.7 million that went to pay interest on tax refunds, $4.5 million for the Tiyan JFK High School lease payment, $3.5 million for the Department of Mental Health and Substance Abuse receiver, $3.4 million in credit card charges and bank fees to name a few.

Flores Brooks says the deficit shouldn't come as a surprise to elected leaders since they passed and signed off on a planned deficit budget of $48 million. The good news GovGuam came under by one million. "So not only are we living beyond our means, but we are passing deficit budgets, so that's another area of concern," she said. "And there are areas despite this planned deficit, there are other areas that continue to be unbudgeted for even though we've had them for several years."

In terms of the GovGuam's bond issuances, GovGuam may have made good on paying past due tax refunds. But it will need to find additional funds to cover the remaining balance owed for 2011 of $30 million plus the estimated $105 million for 2012 income tax refunds.

"Tax refunds next year are going to be problematic," she said.

Later this week the OPA will issue another audit on GovGuam compliance.