FAC Explorer

Audit 36252

FY End
2022-09-30
Total Expended
$1.96M
Findings
10
Programs
2
Organization: Guam Power Authority (GU)
Year: 2022 Accepted: 2023-08-22
Auditor: Ernst & Young LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37888 2022-001 Material Weakness - L
37889 2022-001 Material Weakness - L
37890 2022-001 Material Weakness - L
37891 2022-001 Material Weakness - L
37892 2022-001 Material Weakness - L
614330 2022-001 Material Weakness - L
614331 2022-001 Material Weakness - L
614332 2022-001 Material Weakness - L
614333 2022-001 Material Weakness - L
614334 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $621,336 - 0
15.875 Economic, Social, and Political Development of the Territories $193,791 Yes 1

Contacts

Name Title Type
U75VDGX6Z6L9 John J.e. Kim Auditee
6716483120 Wei-Li Tung Auditor
No contacts on file

Notes to SEFA

Title: 1. Scope of Audit Accounting Policies: 3. Summary of Significant Accounting Policiesa. Basis of AccountingExpenditures reported on the Schedule are reported on the accrual basis of accounting,consistent with the manner in which GPA maintains its accounting records. All expensesand capital outlays are reported as expenditures. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Pass-through entityidentifying numbers are presented where available. GPA does not elect to use the deminimis indirect cost rate allowed under the Uniform Guidance.GPA recognizes contributions from the federal government when qualifying expendituresare incurred.b. Matching CostsThe 25 percent non-federal share of CFDA 97.036 is not included in the accompanyingSchedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Guam Power Authority (GPA) is a component unit of the Government of Guam, a governmentalentity established by the 1950 Organic Act of Guam, as amended, and has the powers of a bodycorporate, as defined in the act and local statutes. Only the transactions of GPA are included withinthe scope of the Single Audit.
Title: 2. Basis of Presentation Accounting Policies: 3. Summary of Significant Accounting Policiesa. Basis of AccountingExpenditures reported on the Schedule are reported on the accrual basis of accounting,consistent with the manner in which GPA maintains its accounting records. All expensesand capital outlays are reported as expenditures. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Pass-through entityidentifying numbers are presented where available. GPA does not elect to use the deminimis indirect cost rate allowed under the Uniform Guidance.GPA recognizes contributions from the federal government when qualifying expendituresare incurred.b. Matching CostsThe 25 percent non-federal share of CFDA 97.036 is not included in the accompanyingSchedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes thefederal grant activity of GPA under programs of the federal government for the year endedSeptember 30, 2022. The information in this Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of GPA, it is not intendedto and does not present the net position, changes in net position, or cash flows of GPA.
Title: 4. ALN 97.036 Accounting Policies: 3. Summary of Significant Accounting Policiesa. Basis of AccountingExpenditures reported on the Schedule are reported on the accrual basis of accounting,consistent with the manner in which GPA maintains its accounting records. All expensesand capital outlays are reported as expenditures. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Pass-through entityidentifying numbers are presented where available. GPA does not elect to use the deminimis indirect cost rate allowed under the Uniform Guidance.GPA recognizes contributions from the federal government when qualifying expendituresare incurred.b. Matching CostsThe 25 percent non-federal share of CFDA 97.036 is not included in the accompanyingSchedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. $423,217 was incurred in FY 2021 and $198,119 was incurred in FY 2022.

Finding Details

Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, amounts reported in SF-425 Federal Financial Report should be accurate. Condition: For one (or 50%) of two reports tested, we noted inaccurate amounts reported in the SF-425 report for the semi-annual reporting period ended 12/31/2021, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Finding No.: 2022-001, Continued Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D21AP10226 Area: Reporting Questioned Costs: $0 Views of responsible officials: GPA offers the following corrective action plan to address the issue: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed. The Controller, Lenora M. Sanz, will be responsible for providing this training by December 31, 2023.