Finding No.: 2022-004
Federal Agency: U.S. Department of Education
AL Program: 84.027 Special Education – Grants to States
Area: Period of Performance
Questioned Costs: $1,835
Criteria:
In accordance with applicable period of performance (POP) requirements, a non-federal entity may
charge only allowable costs incurred during a federal award’s period of performance. Unless the
federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial
obligations incurred under the federal award not later than 120 calendar days after the end date of
the period of performance as specified in the terms and conditions of the federal award or in the
approved extension.
Conditions:
1. GDOE charged costs to a federal award after the period of performance ended, as follows:
No questioned cost is reported because GDOE subsequently provided journal entry JNL
37, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020.
2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as
follows:
Federal Award No. Liquidation End Date Liquidation Date Expenditures
$ 1,996
No questioned cost is reported for $161 because GDOE subsequently provided journal
entry JNL 39, reversing the costs from Grant Year 2019 and appropriately charging Grant
Year 2020.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable period of performance
requirements.
Effect:
GDOE is in noncompliance with applicable period of performance requirements. Reportable
questioned costs total $1,835 from Condition 2.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable period
of performance requirements. Prior to charging costs to a federal award or liquidating obligations
incurred under a federal award, responsible personnel should verify that the period of performance,
including the liquidation end date, has not expired.
Views of Responsible Officials:
GDOE agrees with the finding. During the period of performance in question, the TPFA issued
check no. 2012949 to a vendor in February 2022, within the liquidation period. However, the
TPFA indicated that the vendor lost the check and the TPFA re-issued payment to the vendor on
January 29, 2023. The untimely reissuance of the check resulted in the transaction occurring one
day after the liquidation period expired.
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-005
Federal Agency: U.S. Department of Education
AL Program: 84.027 Special Education – Grants to States
Area: Procurement and Suspension and Debarment
Questioned Costs: $0
Criteria:
In accordance with applicable procurement and suspension and debarment requirements, all
contracts made by the non-Federal entity under the Federal award must contain applicable
provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required
certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor
certifies that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency,
among others.
Condition:
For 9 (or 53%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided,
as follows:
Cause:
GDOE did not establish and implement controls over compliance with applicable procurement and
suspension and debarment requirements relative to Byrd Anti-Lobbying certifications.
Effect:
GDOE is in noncompliance with applicable procurement and suspension and debarment
requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we
are unable to quantify the extent of noncompliance. Subsequently, on 10/13/2023, GDOE effected
partial corrective action by obtaining the required certification for PO 20213366.
Recommendation:
Responsible personnel should establish and implement controls over compliance with applicable
procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying
certifications. Prior to providing a signed purchase order to the selected contractor, responsible
personnel should verify that the contractor has provided the required Byrd Anti-Lobbying
certification.
Views of Responsible Officials:
GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision
of certain contracts, however the records were absent the required certification per 2 CFR
Appendix-II-to-Part-200(I).
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-004
Federal Agency: U.S. Department of Education
AL Program: 84.027 Special Education – Grants to States
Area: Period of Performance
Questioned Costs: $1,835
Criteria:
In accordance with applicable period of performance (POP) requirements, a non-federal entity may
charge only allowable costs incurred during a federal award’s period of performance. Unless the
federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial
obligations incurred under the federal award not later than 120 calendar days after the end date of
the period of performance as specified in the terms and conditions of the federal award or in the
approved extension.
Conditions:
1. GDOE charged costs to a federal award after the period of performance ended, as follows:
No questioned cost is reported because GDOE subsequently provided journal entry JNL
37, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020.
2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as
follows:
Federal Award No. Liquidation End Date Liquidation Date Expenditures
$ 1,996
No questioned cost is reported for $161 because GDOE subsequently provided journal
entry JNL 39, reversing the costs from Grant Year 2019 and appropriately charging Grant
Year 2020.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable period of performance
requirements.
Effect:
GDOE is in noncompliance with applicable period of performance requirements. Reportable
questioned costs total $1,835 from Condition 2.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable period
of performance requirements. Prior to charging costs to a federal award or liquidating obligations
incurred under a federal award, responsible personnel should verify that the period of performance,
including the liquidation end date, has not expired.
Views of Responsible Officials:
GDOE agrees with the finding. During the period of performance in question, the TPFA issued
check no. 2012949 to a vendor in February 2022, within the liquidation period. However, the
TPFA indicated that the vendor lost the check and the TPFA re-issued payment to the vendor on
January 29, 2023. The untimely reissuance of the check resulted in the transaction occurring one
day after the liquidation period expired.
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-005
Federal Agency: U.S. Department of Education
AL Program: 84.027 Special Education – Grants to States
Area: Procurement and Suspension and Debarment
Questioned Costs: $0
Criteria:
In accordance with applicable procurement and suspension and debarment requirements, all
contracts made by the non-Federal entity under the Federal award must contain applicable
provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required
certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor
certifies that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency,
among others.
Condition:
For 9 (or 53%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided,
as follows:
Cause:
GDOE did not establish and implement controls over compliance with applicable procurement and
suspension and debarment requirements relative to Byrd Anti-Lobbying certifications.
Effect:
GDOE is in noncompliance with applicable procurement and suspension and debarment
requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we
are unable to quantify the extent of noncompliance. Subsequently, on 10/13/2023, GDOE effected
partial corrective action by obtaining the required certification for PO 20213366.
Recommendation:
Responsible personnel should establish and implement controls over compliance with applicable
procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying
certifications. Prior to providing a signed purchase order to the selected contractor, responsible
personnel should verify that the contractor has provided the required Byrd Anti-Lobbying
certification.
Views of Responsible Officials:
GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision
of certain contracts, however the records were absent the required certification per 2 CFR
Appendix-II-to-Part-200(I).
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-006
Federal Agency: U.S. Department of Education
AL Program: 84.181 Special Education – Grants for Infants and Families
Area: Period of Performance
Questioned Costs: $0
Criteria:
In accordance with applicable period of performance (POP) requirements, a non-federal entity may
charge only allowable costs incurred during a federal award’s period of performance.
Condition:
GDOE charged costs to a federal award after the period of performance ended, as follows:
Cause:
GDOE did not enforce monitoring controls over compliance with applicable period of performance
requirements.
Effect:
GDOE is in noncompliance with applicable period of performance requirements. No questioned
cost is reported because GDOE subsequently provided journal entry JNL 38, reversing the costs
from Grant Year 2019 and appropriately charging Grant Year 2020.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable period
of performance requirements. Prior to charging costs to a federal award, responsible personnel
should verify that the period of performance, including the liquidation end date, has not expired.
Views of Responsible Officials:
GDOE agrees with the finding. In GDOE’s Munis system, if the Human Resources (HR) pay
records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR
makes the appropriate updates based on the project leads request to update accounts to current
grant year. GDOE corrected the improperly charged payroll expenditures to the proper grant year
via the journal voucher process.
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-007
Federal Agency: U.S. Department of Education
AL Program: 84.181 Special Education - Grants for Infants and Families
Area: Procurement and Suspension and Debarment
Questioned Costs: $0
Criteria:
In accordance with applicable procurement and suspension and debarment requirements, all
contracts made by the non-Federal entity under the Federal award must contain applicable
provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required
certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor
certifies that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency,
among others.
Condition:
For 2 (or 12%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided,
as follows:
Cause:
GDOE did not establish and implement controls over compliance with applicable procurement and
suspension and debarment requirements relative to Byrd Anti-Lobbying certifications.
Effect:
GDOE is in noncompliance with applicable procurement and suspension and debarment
requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we
are unable to quantify the extent of noncompliance.
Recommendation:
Responsible personnel should establish and implement controls over compliance with applicable
procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying
certifications. Prior to providing a signed purchase order to the selected contractor, responsible
personnel should verify that the contractor has provided the required Byrd Anti-Lobbying
certification.
Views of Responsible Officials:
GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision
of certain contracts, however the records were absent the required certification per 2 CFR
Appendix-II-to-Part-200(I).
GDOE’s Corrective Action Plan includes additional details
Finding No.: 2022-008
Federal Agency: U.S. Department of Education
AL Program: 84.403 Consolidated Grant to the Outlying Areas
Area: Procurement and Suspension and Debarment
Questioned Costs: $0
Criteria:
In accordance with applicable procurement and suspension and debarment requirements, all
contracts made by the non-Federal entity under the Federal award must contain applicable
provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required
certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor
certifies that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency,
among others.
Condition:
For 15 (or 60%) of 25 purchase orders (POs), no Byrd Anti-Lobbying certification was provided,
as follows:
Cause:
GDOE did not establish and implement controls over compliance with applicable procurement and
suspension and debarment requirements relative to Byrd Anti-Lobbying certifications.
Effect:
GDOE is in noncompliance with applicable procurement and suspension and debarment
requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we
are unable to quantify the extent of noncompliance. Subsequently, from 10/13/2023 through
10/18/2023, GDOE effected partial corrective action by obtaining the required certifications from
contractors for item numbers 5 through 15.
Recommendation:
Responsible personnel should establish and implement controls over compliance with applicable
procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying
certifications. Prior to providing a signed purchase order to the selected contractor, responsible
personnel should verify that the contractor has provided the required Byrd Anti-Lobbying
certification.
Views of Responsible Officials:
GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision
of certain contracts, however the records were absent the required certification per 2 CFR
Appendix-II-to-Part-200(I).
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-009
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425X American Rescue Plan – State Agency Educational Agency
(Outlying Areas) (ARP-OA SEA)
Federal Award No.: COVID-19 S425X210003
Area: Activities Allowed or Unallowed
Questioned Costs: $0
Criteria:
In accordance with applicable activities allowed or unallowed requirements, the Outlying Areas
must ensure that expenditures under ARP-OA-SEA are consistent with the grant conditions,
including U.S. Department of Education’s approval to charge school-based utilities only for the
period from August 2021 through May 2022 and July 2022 through September 2023.
Conditions:
For one (or 3%) out of 33 transactions tested, aggregating $20.1 million of $68.8 million in total
non-payroll Program expenditures, utility costs for the month of June 2022 were charged to the
Program. No grantor approval for June 2022 was provided.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable activities allowed or
unallowed requirements.
Effect:
GDOE is in noncompliance with applicable activities allowed or unallowed requirements. No
questioned cost is reported because subsequently on September 22, 2023, GDOE obtained an email
confirmation from a U.S. ED Education Program Specialist, confirming that “the power and water
expenditures GDOE incurred…is [sic] an allowable expense for ESF II-SEA” (i.e., ALN
84.425A). GDOE subsequently provided journal entries JNL 34 and JNL 40, transferring the
utilities expenditures from ALN 84.425X to ALN 84.425A.
Identified as a Repeat Finding: 2021-003
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
activities allowed or unallowed requirements. Prior to charging costs to a Federal award,
responsible personnel should verify that the cost is consistent with specific grantor approvals.
Views of Responsible Officials:
The GDOE disagrees with the finding. Utilities (power and water) are an allowable cost allowing
the maximization for a safe return of students to the classroom, and necessary for continued
operation and promoting handwashing techniques to prepare, prevent, and respond to COVID-19.
USEd FAQ B-10 specifically states that "Generally, ESF-SEA or ESF Governor funds may be
used to support activities that are necessary to maintain the operation and continuity of services in
the SEA or LEA as schools and students recover from the pandemic.” Additionally, GDOE sought
grantor approval and USEd approved the allowability of utility expense under the ARP, and more
recently deemed the transfer of utility costs from the ARP to ESF as an allowable expense.
Auditor Response:
Grantor approval of the utility costs for June 2022 was not on file, whereas grantor approval was
obtained specifically for all other months in FY 2022. Further, we acknowledge that US ED
deemed utility costs allowable under ALN 84.425A ESF-SEA; however, this finding is for utility
costs initially charged to ALN 84.425X ARP-OA SEA as of September 30, 2022.
Finding No.: 2022-010
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency
(Outlying Areas) (ESF-SEA)
Federal Award No.: COVID-19 S425A210003
Area: Matching, Level of Effort, Earmarking
Questioned Costs: $0
Criteria:
In accordance with applicable matching, level of effort, earmarking requirements and section
18008 of the CARES Act, the State will maintain support for elementary and secondary education,
and State support for higher education, at least at the levels of such support that is the average of
such State’s support for elementary and secondary education and for higher education provided in
fiscal years 2017, 2018, and 2019. Such average is defined as the baseline.
Condition:
GDOE’s maintenance of effort for FY 2022 appears deficient, as follows:
Based on our reading of email communications from U.S. ED, Education Program Specialist,
Insular Areas, on August 9, 2023, we noted that GDOE’s Maintenance of Effort Data report is
under U.S. ED’s review. U.S. ED identified differences between levels of support reported by
GDOE and by Guam Office of the Governor. In GDOE’s report to U.S. ED, GDOE reported a
projected deficiency in MOE levels for FY 2022.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable matching, level of
effort, earmarking requirements relative to maintenance of effort requirements.
Effect:
GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking
requirements relative to maintenance of effort requirements. No questioned cost is reported
because GDOE is in the process of addressing differences identified by U.S. ED, and we are unable
to quantify the known deficiency.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
matching, level of effort, earmarking requirements relative to maintenance of effort requirements.
Prior to submitting the required Maintenance of Effort data report to U.S. ED, responsible
personnel should work in close liaison with Government of Guam and verify that the reported
amounts are consistent with the state’s overall levels.
Views of Responsible Officials:
The GDOE disagrees with the finding. GDOE does not meet the definition of a State, nor does
GDOE control the direct funding support (appropriations) for elementary and secondary education;
or higher education. GDOE can only provide its calculation based on the projected levels of
support (for elementary and secondary education) utilizing the formula guidance on MOE
calculations issued by USEd. The calculation is based on appropriation levels provided by the
Guam Legislature. Additionally, the figures calculated for FY22 are preliminary until the audited
financials are provided for final submission of MOE data. Preliminarily, GDOE calculated the OA
maintenance of effort to fall short by less than 1%.
Auditor Response:
We acknowledge that audited financial data from the Government of Guam is not available to
derive an exact amount; however, there appears to be general agreement that GDOE’s estimated
MOE for FY 2022 falls short of the required level.
Finding No.: 2022-009
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425X American Rescue Plan – State Agency Educational Agency
(Outlying Areas) (ARP-OA SEA)
Federal Award No.: COVID-19 S425X210003
Area: Activities Allowed or Unallowed
Questioned Costs: $0
Criteria:
In accordance with applicable activities allowed or unallowed requirements, the Outlying Areas
must ensure that expenditures under ARP-OA-SEA are consistent with the grant conditions,
including U.S. Department of Education’s approval to charge school-based utilities only for the
period from August 2021 through May 2022 and July 2022 through September 2023.
Conditions:
For one (or 3%) out of 33 transactions tested, aggregating $20.1 million of $68.8 million in total
non-payroll Program expenditures, utility costs for the month of June 2022 were charged to the
Program. No grantor approval for June 2022 was provided.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable activities allowed or
unallowed requirements.
Effect:
GDOE is in noncompliance with applicable activities allowed or unallowed requirements. No
questioned cost is reported because subsequently on September 22, 2023, GDOE obtained an email
confirmation from a U.S. ED Education Program Specialist, confirming that “the power and water
expenditures GDOE incurred…is [sic] an allowable expense for ESF II-SEA” (i.e., ALN
84.425A). GDOE subsequently provided journal entries JNL 34 and JNL 40, transferring the
utilities expenditures from ALN 84.425X to ALN 84.425A.
Identified as a Repeat Finding: 2021-003
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
activities allowed or unallowed requirements. Prior to charging costs to a Federal award,
responsible personnel should verify that the cost is consistent with specific grantor approvals.
Views of Responsible Officials:
The GDOE disagrees with the finding. Utilities (power and water) are an allowable cost allowing
the maximization for a safe return of students to the classroom, and necessary for continued
operation and promoting handwashing techniques to prepare, prevent, and respond to COVID-19.
USEd FAQ B-10 specifically states that "Generally, ESF-SEA or ESF Governor funds may be
used to support activities that are necessary to maintain the operation and continuity of services in
the SEA or LEA as schools and students recover from the pandemic.” Additionally, GDOE sought
grantor approval and USEd approved the allowability of utility expense under the ARP, and more
recently deemed the transfer of utility costs from the ARP to ESF as an allowable expense.
Auditor Response:
Grantor approval of the utility costs for June 2022 was not on file, whereas grantor approval was
obtained specifically for all other months in FY 2022. Further, we acknowledge that US ED
deemed utility costs allowable under ALN 84.425A ESF-SEA; however, this finding is for utility
costs initially charged to ALN 84.425X ARP-OA SEA as of September 30, 2022.
Finding No.: 2022-010
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency
(Outlying Areas) (ESF-SEA)
Federal Award No.: COVID-19 S425A210003
Area: Matching, Level of Effort, Earmarking
Questioned Costs: $0
Criteria:
In accordance with applicable matching, level of effort, earmarking requirements and section
18008 of the CARES Act, the State will maintain support for elementary and secondary education,
and State support for higher education, at least at the levels of such support that is the average of
such State’s support for elementary and secondary education and for higher education provided in
fiscal years 2017, 2018, and 2019. Such average is defined as the baseline.
Condition:
GDOE’s maintenance of effort for FY 2022 appears deficient, as follows:
Based on our reading of email communications from U.S. ED, Education Program Specialist,
Insular Areas, on August 9, 2023, we noted that GDOE’s Maintenance of Effort Data report is
under U.S. ED’s review. U.S. ED identified differences between levels of support reported by
GDOE and by Guam Office of the Governor. In GDOE’s report to U.S. ED, GDOE reported a
projected deficiency in MOE levels for FY 2022.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable matching, level of
effort, earmarking requirements relative to maintenance of effort requirements.
Effect:
GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking
requirements relative to maintenance of effort requirements. No questioned cost is reported
because GDOE is in the process of addressing differences identified by U.S. ED, and we are unable
to quantify the known deficiency.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
matching, level of effort, earmarking requirements relative to maintenance of effort requirements.
Prior to submitting the required Maintenance of Effort data report to U.S. ED, responsible
personnel should work in close liaison with Government of Guam and verify that the reported
amounts are consistent with the state’s overall levels.
Views of Responsible Officials:
The GDOE disagrees with the finding. GDOE does not meet the definition of a State, nor does
GDOE control the direct funding support (appropriations) for elementary and secondary education;
or higher education. GDOE can only provide its calculation based on the projected levels of
support (for elementary and secondary education) utilizing the formula guidance on MOE
calculations issued by USEd. The calculation is based on appropriation levels provided by the
Guam Legislature. Additionally, the figures calculated for FY22 are preliminary until the audited
financials are provided for final submission of MOE data. Preliminarily, GDOE calculated the OA
maintenance of effort to fall short by less than 1%.
Auditor Response:
We acknowledge that audited financial data from the Government of Guam is not available to
derive an exact amount; however, there appears to be general agreement that GDOE’s estimated
MOE for FY 2022 falls short of the required level.
Finding No.: 2022-009
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425X American Rescue Plan – State Agency Educational Agency
(Outlying Areas) (ARP-OA SEA)
Federal Award No.: COVID-19 S425X210003
Area: Activities Allowed or Unallowed
Questioned Costs: $0
Criteria:
In accordance with applicable activities allowed or unallowed requirements, the Outlying Areas
must ensure that expenditures under ARP-OA-SEA are consistent with the grant conditions,
including U.S. Department of Education’s approval to charge school-based utilities only for the
period from August 2021 through May 2022 and July 2022 through September 2023.
Conditions:
For one (or 3%) out of 33 transactions tested, aggregating $20.1 million of $68.8 million in total
non-payroll Program expenditures, utility costs for the month of June 2022 were charged to the
Program. No grantor approval for June 2022 was provided.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable activities allowed or
unallowed requirements.
Effect:
GDOE is in noncompliance with applicable activities allowed or unallowed requirements. No
questioned cost is reported because subsequently on September 22, 2023, GDOE obtained an email
confirmation from a U.S. ED Education Program Specialist, confirming that “the power and water
expenditures GDOE incurred…is [sic] an allowable expense for ESF II-SEA” (i.e., ALN
84.425A). GDOE subsequently provided journal entries JNL 34 and JNL 40, transferring the
utilities expenditures from ALN 84.425X to ALN 84.425A.
Identified as a Repeat Finding: 2021-003
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
activities allowed or unallowed requirements. Prior to charging costs to a Federal award,
responsible personnel should verify that the cost is consistent with specific grantor approvals.
Views of Responsible Officials:
The GDOE disagrees with the finding. Utilities (power and water) are an allowable cost allowing
the maximization for a safe return of students to the classroom, and necessary for continued
operation and promoting handwashing techniques to prepare, prevent, and respond to COVID-19.
USEd FAQ B-10 specifically states that "Generally, ESF-SEA or ESF Governor funds may be
used to support activities that are necessary to maintain the operation and continuity of services in
the SEA or LEA as schools and students recover from the pandemic.” Additionally, GDOE sought
grantor approval and USEd approved the allowability of utility expense under the ARP, and more
recently deemed the transfer of utility costs from the ARP to ESF as an allowable expense.
Auditor Response:
Grantor approval of the utility costs for June 2022 was not on file, whereas grantor approval was
obtained specifically for all other months in FY 2022. Further, we acknowledge that US ED
deemed utility costs allowable under ALN 84.425A ESF-SEA; however, this finding is for utility
costs initially charged to ALN 84.425X ARP-OA SEA as of September 30, 2022.
Finding No.: 2022-010
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency
(Outlying Areas) (ESF-SEA)
Federal Award No.: COVID-19 S425A210003
Area: Matching, Level of Effort, Earmarking
Questioned Costs: $0
Criteria:
In accordance with applicable matching, level of effort, earmarking requirements and section
18008 of the CARES Act, the State will maintain support for elementary and secondary education,
and State support for higher education, at least at the levels of such support that is the average of
such State’s support for elementary and secondary education and for higher education provided in
fiscal years 2017, 2018, and 2019. Such average is defined as the baseline.
Condition:
GDOE’s maintenance of effort for FY 2022 appears deficient, as follows:
Based on our reading of email communications from U.S. ED, Education Program Specialist,
Insular Areas, on August 9, 2023, we noted that GDOE’s Maintenance of Effort Data report is
under U.S. ED’s review. U.S. ED identified differences between levels of support reported by
GDOE and by Guam Office of the Governor. In GDOE’s report to U.S. ED, GDOE reported a
projected deficiency in MOE levels for FY 2022.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable matching, level of
effort, earmarking requirements relative to maintenance of effort requirements.
Effect:
GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking
requirements relative to maintenance of effort requirements. No questioned cost is reported
because GDOE is in the process of addressing differences identified by U.S. ED, and we are unable
to quantify the known deficiency.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
matching, level of effort, earmarking requirements relative to maintenance of effort requirements.
Prior to submitting the required Maintenance of Effort data report to U.S. ED, responsible
personnel should work in close liaison with Government of Guam and verify that the reported
amounts are consistent with the state’s overall levels.
Views of Responsible Officials:
The GDOE disagrees with the finding. GDOE does not meet the definition of a State, nor does
GDOE control the direct funding support (appropriations) for elementary and secondary education;
or higher education. GDOE can only provide its calculation based on the projected levels of
support (for elementary and secondary education) utilizing the formula guidance on MOE
calculations issued by USEd. The calculation is based on appropriation levels provided by the
Guam Legislature. Additionally, the figures calculated for FY22 are preliminary until the audited
financials are provided for final submission of MOE data. Preliminarily, GDOE calculated the OA
maintenance of effort to fall short by less than 1%.
Auditor Response:
We acknowledge that audited financial data from the Government of Guam is not available to
derive an exact amount; however, there appears to be general agreement that GDOE’s estimated
MOE for FY 2022 falls short of the required level.
Finding No.: 2022-004
Federal Agency: U.S. Department of Education
AL Program: 84.027 Special Education – Grants to States
Area: Period of Performance
Questioned Costs: $1,835
Criteria:
In accordance with applicable period of performance (POP) requirements, a non-federal entity may
charge only allowable costs incurred during a federal award’s period of performance. Unless the
federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial
obligations incurred under the federal award not later than 120 calendar days after the end date of
the period of performance as specified in the terms and conditions of the federal award or in the
approved extension.
Conditions:
1. GDOE charged costs to a federal award after the period of performance ended, as follows:
No questioned cost is reported because GDOE subsequently provided journal entry JNL
37, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020.
2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as
follows:
Federal Award No. Liquidation End Date Liquidation Date Expenditures
$ 1,996
No questioned cost is reported for $161 because GDOE subsequently provided journal
entry JNL 39, reversing the costs from Grant Year 2019 and appropriately charging Grant
Year 2020.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable period of performance
requirements.
Effect:
GDOE is in noncompliance with applicable period of performance requirements. Reportable
questioned costs total $1,835 from Condition 2.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable period
of performance requirements. Prior to charging costs to a federal award or liquidating obligations
incurred under a federal award, responsible personnel should verify that the period of performance,
including the liquidation end date, has not expired.
Views of Responsible Officials:
GDOE agrees with the finding. During the period of performance in question, the TPFA issued
check no. 2012949 to a vendor in February 2022, within the liquidation period. However, the
TPFA indicated that the vendor lost the check and the TPFA re-issued payment to the vendor on
January 29, 2023. The untimely reissuance of the check resulted in the transaction occurring one
day after the liquidation period expired.
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-005
Federal Agency: U.S. Department of Education
AL Program: 84.027 Special Education – Grants to States
Area: Procurement and Suspension and Debarment
Questioned Costs: $0
Criteria:
In accordance with applicable procurement and suspension and debarment requirements, all
contracts made by the non-Federal entity under the Federal award must contain applicable
provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required
certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor
certifies that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency,
among others.
Condition:
For 9 (or 53%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided,
as follows:
Cause:
GDOE did not establish and implement controls over compliance with applicable procurement and
suspension and debarment requirements relative to Byrd Anti-Lobbying certifications.
Effect:
GDOE is in noncompliance with applicable procurement and suspension and debarment
requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we
are unable to quantify the extent of noncompliance. Subsequently, on 10/13/2023, GDOE effected
partial corrective action by obtaining the required certification for PO 20213366.
Recommendation:
Responsible personnel should establish and implement controls over compliance with applicable
procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying
certifications. Prior to providing a signed purchase order to the selected contractor, responsible
personnel should verify that the contractor has provided the required Byrd Anti-Lobbying
certification.
Views of Responsible Officials:
GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision
of certain contracts, however the records were absent the required certification per 2 CFR
Appendix-II-to-Part-200(I).
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-004
Federal Agency: U.S. Department of Education
AL Program: 84.027 Special Education – Grants to States
Area: Period of Performance
Questioned Costs: $1,835
Criteria:
In accordance with applicable period of performance (POP) requirements, a non-federal entity may
charge only allowable costs incurred during a federal award’s period of performance. Unless the
federal awarding agency authorizes an extension, a non-federal entity must liquidate all financial
obligations incurred under the federal award not later than 120 calendar days after the end date of
the period of performance as specified in the terms and conditions of the federal award or in the
approved extension.
Conditions:
1. GDOE charged costs to a federal award after the period of performance ended, as follows:
No questioned cost is reported because GDOE subsequently provided journal entry JNL
37, reversing the costs from Grant Year 2019 and appropriately charging Grant Year 2020.
2. GDOE liquidated obligations of a federal award after the approved liquidation end date, as
follows:
Federal Award No. Liquidation End Date Liquidation Date Expenditures
$ 1,996
No questioned cost is reported for $161 because GDOE subsequently provided journal
entry JNL 39, reversing the costs from Grant Year 2019 and appropriately charging Grant
Year 2020.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable period of performance
requirements.
Effect:
GDOE is in noncompliance with applicable period of performance requirements. Reportable
questioned costs total $1,835 from Condition 2.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable period
of performance requirements. Prior to charging costs to a federal award or liquidating obligations
incurred under a federal award, responsible personnel should verify that the period of performance,
including the liquidation end date, has not expired.
Views of Responsible Officials:
GDOE agrees with the finding. During the period of performance in question, the TPFA issued
check no. 2012949 to a vendor in February 2022, within the liquidation period. However, the
TPFA indicated that the vendor lost the check and the TPFA re-issued payment to the vendor on
January 29, 2023. The untimely reissuance of the check resulted in the transaction occurring one
day after the liquidation period expired.
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-005
Federal Agency: U.S. Department of Education
AL Program: 84.027 Special Education – Grants to States
Area: Procurement and Suspension and Debarment
Questioned Costs: $0
Criteria:
In accordance with applicable procurement and suspension and debarment requirements, all
contracts made by the non-Federal entity under the Federal award must contain applicable
provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required
certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor
certifies that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency,
among others.
Condition:
For 9 (or 53%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided,
as follows:
Cause:
GDOE did not establish and implement controls over compliance with applicable procurement and
suspension and debarment requirements relative to Byrd Anti-Lobbying certifications.
Effect:
GDOE is in noncompliance with applicable procurement and suspension and debarment
requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we
are unable to quantify the extent of noncompliance. Subsequently, on 10/13/2023, GDOE effected
partial corrective action by obtaining the required certification for PO 20213366.
Recommendation:
Responsible personnel should establish and implement controls over compliance with applicable
procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying
certifications. Prior to providing a signed purchase order to the selected contractor, responsible
personnel should verify that the contractor has provided the required Byrd Anti-Lobbying
certification.
Views of Responsible Officials:
GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision
of certain contracts, however the records were absent the required certification per 2 CFR
Appendix-II-to-Part-200(I).
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-006
Federal Agency: U.S. Department of Education
AL Program: 84.181 Special Education – Grants for Infants and Families
Area: Period of Performance
Questioned Costs: $0
Criteria:
In accordance with applicable period of performance (POP) requirements, a non-federal entity may
charge only allowable costs incurred during a federal award’s period of performance.
Condition:
GDOE charged costs to a federal award after the period of performance ended, as follows:
Cause:
GDOE did not enforce monitoring controls over compliance with applicable period of performance
requirements.
Effect:
GDOE is in noncompliance with applicable period of performance requirements. No questioned
cost is reported because GDOE subsequently provided journal entry JNL 38, reversing the costs
from Grant Year 2019 and appropriately charging Grant Year 2020.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable period
of performance requirements. Prior to charging costs to a federal award, responsible personnel
should verify that the period of performance, including the liquidation end date, has not expired.
Views of Responsible Officials:
GDOE agrees with the finding. In GDOE’s Munis system, if the Human Resources (HR) pay
records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR
makes the appropriate updates based on the project leads request to update accounts to current
grant year. GDOE corrected the improperly charged payroll expenditures to the proper grant year
via the journal voucher process.
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-007
Federal Agency: U.S. Department of Education
AL Program: 84.181 Special Education - Grants for Infants and Families
Area: Procurement and Suspension and Debarment
Questioned Costs: $0
Criteria:
In accordance with applicable procurement and suspension and debarment requirements, all
contracts made by the non-Federal entity under the Federal award must contain applicable
provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required
certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor
certifies that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency,
among others.
Condition:
For 2 (or 12%) of 17 purchase orders (POs), no Byrd Anti-Lobbying certification was provided,
as follows:
Cause:
GDOE did not establish and implement controls over compliance with applicable procurement and
suspension and debarment requirements relative to Byrd Anti-Lobbying certifications.
Effect:
GDOE is in noncompliance with applicable procurement and suspension and debarment
requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we
are unable to quantify the extent of noncompliance.
Recommendation:
Responsible personnel should establish and implement controls over compliance with applicable
procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying
certifications. Prior to providing a signed purchase order to the selected contractor, responsible
personnel should verify that the contractor has provided the required Byrd Anti-Lobbying
certification.
Views of Responsible Officials:
GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision
of certain contracts, however the records were absent the required certification per 2 CFR
Appendix-II-to-Part-200(I).
GDOE’s Corrective Action Plan includes additional details
Finding No.: 2022-008
Federal Agency: U.S. Department of Education
AL Program: 84.403 Consolidated Grant to the Outlying Areas
Area: Procurement and Suspension and Debarment
Questioned Costs: $0
Criteria:
In accordance with applicable procurement and suspension and debarment requirements, all
contracts made by the non-Federal entity under the Federal award must contain applicable
provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required
certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor
certifies that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency,
among others.
Condition:
For 15 (or 60%) of 25 purchase orders (POs), no Byrd Anti-Lobbying certification was provided,
as follows:
Cause:
GDOE did not establish and implement controls over compliance with applicable procurement and
suspension and debarment requirements relative to Byrd Anti-Lobbying certifications.
Effect:
GDOE is in noncompliance with applicable procurement and suspension and debarment
requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we
are unable to quantify the extent of noncompliance. Subsequently, from 10/13/2023 through
10/18/2023, GDOE effected partial corrective action by obtaining the required certifications from
contractors for item numbers 5 through 15.
Recommendation:
Responsible personnel should establish and implement controls over compliance with applicable
procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying
certifications. Prior to providing a signed purchase order to the selected contractor, responsible
personnel should verify that the contractor has provided the required Byrd Anti-Lobbying
certification.
Views of Responsible Officials:
GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision
of certain contracts, however the records were absent the required certification per 2 CFR
Appendix-II-to-Part-200(I).
GDOE’s Corrective Action Plan includes additional details.
Finding No.: 2022-009
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425X American Rescue Plan – State Agency Educational Agency
(Outlying Areas) (ARP-OA SEA)
Federal Award No.: COVID-19 S425X210003
Area: Activities Allowed or Unallowed
Questioned Costs: $0
Criteria:
In accordance with applicable activities allowed or unallowed requirements, the Outlying Areas
must ensure that expenditures under ARP-OA-SEA are consistent with the grant conditions,
including U.S. Department of Education’s approval to charge school-based utilities only for the
period from August 2021 through May 2022 and July 2022 through September 2023.
Conditions:
For one (or 3%) out of 33 transactions tested, aggregating $20.1 million of $68.8 million in total
non-payroll Program expenditures, utility costs for the month of June 2022 were charged to the
Program. No grantor approval for June 2022 was provided.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable activities allowed or
unallowed requirements.
Effect:
GDOE is in noncompliance with applicable activities allowed or unallowed requirements. No
questioned cost is reported because subsequently on September 22, 2023, GDOE obtained an email
confirmation from a U.S. ED Education Program Specialist, confirming that “the power and water
expenditures GDOE incurred…is [sic] an allowable expense for ESF II-SEA” (i.e., ALN
84.425A). GDOE subsequently provided journal entries JNL 34 and JNL 40, transferring the
utilities expenditures from ALN 84.425X to ALN 84.425A.
Identified as a Repeat Finding: 2021-003
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
activities allowed or unallowed requirements. Prior to charging costs to a Federal award,
responsible personnel should verify that the cost is consistent with specific grantor approvals.
Views of Responsible Officials:
The GDOE disagrees with the finding. Utilities (power and water) are an allowable cost allowing
the maximization for a safe return of students to the classroom, and necessary for continued
operation and promoting handwashing techniques to prepare, prevent, and respond to COVID-19.
USEd FAQ B-10 specifically states that "Generally, ESF-SEA or ESF Governor funds may be
used to support activities that are necessary to maintain the operation and continuity of services in
the SEA or LEA as schools and students recover from the pandemic.” Additionally, GDOE sought
grantor approval and USEd approved the allowability of utility expense under the ARP, and more
recently deemed the transfer of utility costs from the ARP to ESF as an allowable expense.
Auditor Response:
Grantor approval of the utility costs for June 2022 was not on file, whereas grantor approval was
obtained specifically for all other months in FY 2022. Further, we acknowledge that US ED
deemed utility costs allowable under ALN 84.425A ESF-SEA; however, this finding is for utility
costs initially charged to ALN 84.425X ARP-OA SEA as of September 30, 2022.
Finding No.: 2022-010
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency
(Outlying Areas) (ESF-SEA)
Federal Award No.: COVID-19 S425A210003
Area: Matching, Level of Effort, Earmarking
Questioned Costs: $0
Criteria:
In accordance with applicable matching, level of effort, earmarking requirements and section
18008 of the CARES Act, the State will maintain support for elementary and secondary education,
and State support for higher education, at least at the levels of such support that is the average of
such State’s support for elementary and secondary education and for higher education provided in
fiscal years 2017, 2018, and 2019. Such average is defined as the baseline.
Condition:
GDOE’s maintenance of effort for FY 2022 appears deficient, as follows:
Based on our reading of email communications from U.S. ED, Education Program Specialist,
Insular Areas, on August 9, 2023, we noted that GDOE’s Maintenance of Effort Data report is
under U.S. ED’s review. U.S. ED identified differences between levels of support reported by
GDOE and by Guam Office of the Governor. In GDOE’s report to U.S. ED, GDOE reported a
projected deficiency in MOE levels for FY 2022.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable matching, level of
effort, earmarking requirements relative to maintenance of effort requirements.
Effect:
GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking
requirements relative to maintenance of effort requirements. No questioned cost is reported
because GDOE is in the process of addressing differences identified by U.S. ED, and we are unable
to quantify the known deficiency.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
matching, level of effort, earmarking requirements relative to maintenance of effort requirements.
Prior to submitting the required Maintenance of Effort data report to U.S. ED, responsible
personnel should work in close liaison with Government of Guam and verify that the reported
amounts are consistent with the state’s overall levels.
Views of Responsible Officials:
The GDOE disagrees with the finding. GDOE does not meet the definition of a State, nor does
GDOE control the direct funding support (appropriations) for elementary and secondary education;
or higher education. GDOE can only provide its calculation based on the projected levels of
support (for elementary and secondary education) utilizing the formula guidance on MOE
calculations issued by USEd. The calculation is based on appropriation levels provided by the
Guam Legislature. Additionally, the figures calculated for FY22 are preliminary until the audited
financials are provided for final submission of MOE data. Preliminarily, GDOE calculated the OA
maintenance of effort to fall short by less than 1%.
Auditor Response:
We acknowledge that audited financial data from the Government of Guam is not available to
derive an exact amount; however, there appears to be general agreement that GDOE’s estimated
MOE for FY 2022 falls short of the required level.
Finding No.: 2022-009
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425X American Rescue Plan – State Agency Educational Agency
(Outlying Areas) (ARP-OA SEA)
Federal Award No.: COVID-19 S425X210003
Area: Activities Allowed or Unallowed
Questioned Costs: $0
Criteria:
In accordance with applicable activities allowed or unallowed requirements, the Outlying Areas
must ensure that expenditures under ARP-OA-SEA are consistent with the grant conditions,
including U.S. Department of Education’s approval to charge school-based utilities only for the
period from August 2021 through May 2022 and July 2022 through September 2023.
Conditions:
For one (or 3%) out of 33 transactions tested, aggregating $20.1 million of $68.8 million in total
non-payroll Program expenditures, utility costs for the month of June 2022 were charged to the
Program. No grantor approval for June 2022 was provided.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable activities allowed or
unallowed requirements.
Effect:
GDOE is in noncompliance with applicable activities allowed or unallowed requirements. No
questioned cost is reported because subsequently on September 22, 2023, GDOE obtained an email
confirmation from a U.S. ED Education Program Specialist, confirming that “the power and water
expenditures GDOE incurred…is [sic] an allowable expense for ESF II-SEA” (i.e., ALN
84.425A). GDOE subsequently provided journal entries JNL 34 and JNL 40, transferring the
utilities expenditures from ALN 84.425X to ALN 84.425A.
Identified as a Repeat Finding: 2021-003
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
activities allowed or unallowed requirements. Prior to charging costs to a Federal award,
responsible personnel should verify that the cost is consistent with specific grantor approvals.
Views of Responsible Officials:
The GDOE disagrees with the finding. Utilities (power and water) are an allowable cost allowing
the maximization for a safe return of students to the classroom, and necessary for continued
operation and promoting handwashing techniques to prepare, prevent, and respond to COVID-19.
USEd FAQ B-10 specifically states that "Generally, ESF-SEA or ESF Governor funds may be
used to support activities that are necessary to maintain the operation and continuity of services in
the SEA or LEA as schools and students recover from the pandemic.” Additionally, GDOE sought
grantor approval and USEd approved the allowability of utility expense under the ARP, and more
recently deemed the transfer of utility costs from the ARP to ESF as an allowable expense.
Auditor Response:
Grantor approval of the utility costs for June 2022 was not on file, whereas grantor approval was
obtained specifically for all other months in FY 2022. Further, we acknowledge that US ED
deemed utility costs allowable under ALN 84.425A ESF-SEA; however, this finding is for utility
costs initially charged to ALN 84.425X ARP-OA SEA as of September 30, 2022.
Finding No.: 2022-010
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency
(Outlying Areas) (ESF-SEA)
Federal Award No.: COVID-19 S425A210003
Area: Matching, Level of Effort, Earmarking
Questioned Costs: $0
Criteria:
In accordance with applicable matching, level of effort, earmarking requirements and section
18008 of the CARES Act, the State will maintain support for elementary and secondary education,
and State support for higher education, at least at the levels of such support that is the average of
such State’s support for elementary and secondary education and for higher education provided in
fiscal years 2017, 2018, and 2019. Such average is defined as the baseline.
Condition:
GDOE’s maintenance of effort for FY 2022 appears deficient, as follows:
Based on our reading of email communications from U.S. ED, Education Program Specialist,
Insular Areas, on August 9, 2023, we noted that GDOE’s Maintenance of Effort Data report is
under U.S. ED’s review. U.S. ED identified differences between levels of support reported by
GDOE and by Guam Office of the Governor. In GDOE’s report to U.S. ED, GDOE reported a
projected deficiency in MOE levels for FY 2022.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable matching, level of
effort, earmarking requirements relative to maintenance of effort requirements.
Effect:
GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking
requirements relative to maintenance of effort requirements. No questioned cost is reported
because GDOE is in the process of addressing differences identified by U.S. ED, and we are unable
to quantify the known deficiency.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
matching, level of effort, earmarking requirements relative to maintenance of effort requirements.
Prior to submitting the required Maintenance of Effort data report to U.S. ED, responsible
personnel should work in close liaison with Government of Guam and verify that the reported
amounts are consistent with the state’s overall levels.
Views of Responsible Officials:
The GDOE disagrees with the finding. GDOE does not meet the definition of a State, nor does
GDOE control the direct funding support (appropriations) for elementary and secondary education;
or higher education. GDOE can only provide its calculation based on the projected levels of
support (for elementary and secondary education) utilizing the formula guidance on MOE
calculations issued by USEd. The calculation is based on appropriation levels provided by the
Guam Legislature. Additionally, the figures calculated for FY22 are preliminary until the audited
financials are provided for final submission of MOE data. Preliminarily, GDOE calculated the OA
maintenance of effort to fall short by less than 1%.
Auditor Response:
We acknowledge that audited financial data from the Government of Guam is not available to
derive an exact amount; however, there appears to be general agreement that GDOE’s estimated
MOE for FY 2022 falls short of the required level.
Finding No.: 2022-009
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425X American Rescue Plan – State Agency Educational Agency
(Outlying Areas) (ARP-OA SEA)
Federal Award No.: COVID-19 S425X210003
Area: Activities Allowed or Unallowed
Questioned Costs: $0
Criteria:
In accordance with applicable activities allowed or unallowed requirements, the Outlying Areas
must ensure that expenditures under ARP-OA-SEA are consistent with the grant conditions,
including U.S. Department of Education’s approval to charge school-based utilities only for the
period from August 2021 through May 2022 and July 2022 through September 2023.
Conditions:
For one (or 3%) out of 33 transactions tested, aggregating $20.1 million of $68.8 million in total
non-payroll Program expenditures, utility costs for the month of June 2022 were charged to the
Program. No grantor approval for June 2022 was provided.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable activities allowed or
unallowed requirements.
Effect:
GDOE is in noncompliance with applicable activities allowed or unallowed requirements. No
questioned cost is reported because subsequently on September 22, 2023, GDOE obtained an email
confirmation from a U.S. ED Education Program Specialist, confirming that “the power and water
expenditures GDOE incurred…is [sic] an allowable expense for ESF II-SEA” (i.e., ALN
84.425A). GDOE subsequently provided journal entries JNL 34 and JNL 40, transferring the
utilities expenditures from ALN 84.425X to ALN 84.425A.
Identified as a Repeat Finding: 2021-003
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
activities allowed or unallowed requirements. Prior to charging costs to a Federal award,
responsible personnel should verify that the cost is consistent with specific grantor approvals.
Views of Responsible Officials:
The GDOE disagrees with the finding. Utilities (power and water) are an allowable cost allowing
the maximization for a safe return of students to the classroom, and necessary for continued
operation and promoting handwashing techniques to prepare, prevent, and respond to COVID-19.
USEd FAQ B-10 specifically states that "Generally, ESF-SEA or ESF Governor funds may be
used to support activities that are necessary to maintain the operation and continuity of services in
the SEA or LEA as schools and students recover from the pandemic.” Additionally, GDOE sought
grantor approval and USEd approved the allowability of utility expense under the ARP, and more
recently deemed the transfer of utility costs from the ARP to ESF as an allowable expense.
Auditor Response:
Grantor approval of the utility costs for June 2022 was not on file, whereas grantor approval was
obtained specifically for all other months in FY 2022. Further, we acknowledge that US ED
deemed utility costs allowable under ALN 84.425A ESF-SEA; however, this finding is for utility
costs initially charged to ALN 84.425X ARP-OA SEA as of September 30, 2022.
Finding No.: 2022-010
Federal Agency: U.S. Department of Education (ED)
AL Program: 84.425 Education Stabilization Fund
ED Subprogram: 84.425A Education Stabilization Fund–State Educational Agency
(Outlying Areas) (ESF-SEA)
Federal Award No.: COVID-19 S425A210003
Area: Matching, Level of Effort, Earmarking
Questioned Costs: $0
Criteria:
In accordance with applicable matching, level of effort, earmarking requirements and section
18008 of the CARES Act, the State will maintain support for elementary and secondary education,
and State support for higher education, at least at the levels of such support that is the average of
such State’s support for elementary and secondary education and for higher education provided in
fiscal years 2017, 2018, and 2019. Such average is defined as the baseline.
Condition:
GDOE’s maintenance of effort for FY 2022 appears deficient, as follows:
Based on our reading of email communications from U.S. ED, Education Program Specialist,
Insular Areas, on August 9, 2023, we noted that GDOE’s Maintenance of Effort Data report is
under U.S. ED’s review. U.S. ED identified differences between levels of support reported by
GDOE and by Guam Office of the Governor. In GDOE’s report to U.S. ED, GDOE reported a
projected deficiency in MOE levels for FY 2022.
Cause:
GDOE did not enforce monitoring controls over compliance with applicable matching, level of
effort, earmarking requirements relative to maintenance of effort requirements.
Effect:
GDOE appears to be in noncompliance with applicable matching, level of effort, earmarking
requirements relative to maintenance of effort requirements. No questioned cost is reported
because GDOE is in the process of addressing differences identified by U.S. ED, and we are unable
to quantify the known deficiency.
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
matching, level of effort, earmarking requirements relative to maintenance of effort requirements.
Prior to submitting the required Maintenance of Effort data report to U.S. ED, responsible
personnel should work in close liaison with Government of Guam and verify that the reported
amounts are consistent with the state’s overall levels.
Views of Responsible Officials:
The GDOE disagrees with the finding. GDOE does not meet the definition of a State, nor does
GDOE control the direct funding support (appropriations) for elementary and secondary education;
or higher education. GDOE can only provide its calculation based on the projected levels of
support (for elementary and secondary education) utilizing the formula guidance on MOE
calculations issued by USEd. The calculation is based on appropriation levels provided by the
Guam Legislature. Additionally, the figures calculated for FY22 are preliminary until the audited
financials are provided for final submission of MOE data. Preliminarily, GDOE calculated the OA
maintenance of effort to fall short by less than 1%.
Auditor Response:
We acknowledge that audited financial data from the Government of Guam is not available to
derive an exact amount; however, there appears to be general agreement that GDOE’s estimated
MOE for FY 2022 falls short of the required level.