Guam Housing and Urban Renewal Authority releases FY2023 financial audit

The Guam Housing and Urban Renewal Authority just released their Fiscal Year 2023 financial audit, reporting they received an unmodified (clean) opinion in its FY ending in September 30, 2023 from Ernst & Young, LLP. 

However,  GHURA received a qualified opinion on its Report on Compliance for each Major Federal Program. Three of its major federal programs such as the Community Development Block Grant-Entitlement Grants Cluster, Continuum of Care program, and Housing Voucher Cluster have material weaknesses in internal control over compliance resulting in Questioned Costs of $51K. 

In its report on the Schedule of Expenditures of Federal Awards, EY opined that the SEFA is fairly stated, in all material respects in relation to the basic financial statements as a whole

EY also issued a separate management letter identifying four deficiencies related to allowance for doubtful accounts, pension and OPEB reconciliation, net position reconciliation, and deferred charges sub-ledger.

GHURA ended FY 2023 with a net position of $18.1 million, or a $2.8M decrease compared with the prior year’s net position of $21.0M, resulting from expenses exceeding revenues.

In FY2023, GHURA’s total revenues decreased to $65.0M from $70.0M in FY 2022, while expenses rose to $67.8M from $60.8M. Other operating income dropped by $2.1M, primarily due to a one-time revenue in FY 2022. Housing assistance payments increased by $5.5M.

GHURA manages 750 public housing units with a 91% occupancy rate (96% adjusted). The AMP system aids in better management and long-term planning.

GHURA received a $3.2M HUD grant for physical improvements to public housing units, focusing on repairs and maintenance.

GHURA administers 3K HCV and special voucher programs with a 96% average utilization rate. In 2023, 20 new vouchers were awarded, including mainstream and regular HCV.

The Family Self-Sufficiency program enrolled 32 new families, served 148 participants, and saw three families graduate, with five receiving escrow payouts totaling $22K.

The Guma Trankilidat Project included 50 units, with 28 upgraded at a cost of $540K. An additional $2.6M is planned for future improvements.

Guam received $4.5M for eligible projects under various HUD programs and $1.4M for competitive consolidated application activities.

The audit reported four material weaknesses, including discrepancies in financial reports and unresolved prior audit findings. Additionally, the Management Letter highlighted issues in accounts receivable, pension reconciliation, net position reconciliation, and deferred charges subledger.