The Office of Public Accountability released the University of Guam’s FY 2023 financial audit, conducted by Ernst & Young LLP (EY). Despite clean opinions on financial statements and major federal programs, UOG ended FY 2023 with a significant deficit and ongoing financial challenges.

EY identified two significant deficiencies in UOG’s internal controls over compliance but found no material weaknesses or questioned costs. UOG reported a negative change in net position of $8.1 million, compared to a $4.1 million positive change in FY 2022. The university's net position is now a negative $101.5 million.

Total revenues fell by $5.4 million to $112.9 million, with university-generated revenues decreasing from $83.2 million to $71.8 million. Despite securing significant grants, tuition and fees declined by $2.4 million due to increased scholarship allowances and a drop in enrollment by 66 students.

Expenses increased by $6.8 million, reaching $121 million. This was driven by higher costs in operational maintenance and Core Mission areas such as instruction, public service, and research, largely due to salary adjustments and other operational costs.

UOG secured a $21.7 million USDA loan and $7.1 million from the Governor’s office for the School of Engineering and the Dr. Lucio Chua Tan Student Service Center. An $8.5 million federal grant will fund the new Water & Environmental Research Institute and the Margaret Perez Hattori-Uchima School of Health Nursing annex.

As UOG continues to face challenges with declining government funding, reduced enrollment, and rising costs, strategic construction projects and ongoing grant activities aim to enhance the university’s infrastructure and capabilities. Efforts to address Typhoon Mawar-related damages are ongoing, with significant expenses anticipated in FY 2024 and FY 2025.

For more details, visit www.opaguam.org and www.uog.edu.