Finding Text
Finding No.: 2023-015
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. Furthermore, a State
must use the same data sources in determining overall State spending for the baseline years and
FY 2023.
Condition:
GDOE has not submitted final 2023 expenditure data for elementary/secondary education, higher
education, and overall Outlying Area spending. Based on our reading of email communications
from U.S. ED, Education Program Specialist, Insular Areas, in September 2024, we noted that
U.S. ED is aware of such pending submission.
Calculations using preliminary data appear to indicate that GDOE’s maintenance of effort for FY
2023 may be deficient, as follows:
Finding No.: 2023-015, continued
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
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 presented
because the source data for determining overall State spending for the baseline years was the
State’s Single Audit Reports, and the State’s Single Audit Report for FY 2023 is yet to be issued.
Identified as a Repeat Finding: 2022-010
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable
matching, level of effort, earmarking requirements relative to maintenance of effort requirements.
Responsible personnel should work in close liaison with Government of Guam to verify the State’s
overall spending levels.
Views of Responsible Officials:
GDOE disagrees with the finding. The final 2023 data for the Maintenance of Effort (MOE) will
be based on the audited financials for FY 2023 as approved in GDOE’s communication with USEd.
Since the audits for GDOE and the Government of Guam were both delayed, the final data needed
to complete the MOE calculation was not available. GDOE was proactive in providing USEd with
preliminary calculations using appropriated amounts for elementary and secondary education
which indicated that the MOE fell within the acceptable one percent of the baseline. GDOE
believes that it cannot be held to an audit finding for an MOE when the MOE calculation has yet
to be finalized. Additionally, GDOE was approved for waivers in FY 2022. Upon completion of
this year’s audit and calculation of MOE, GDOE is still subject to a waiver request approval which
would negate the MOE finding identified.
Finding No.: 2023-015, continued
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
Views of Responsible Officials, continued:
Plan of action and completion date:
Once the financial audits for GDOE and GovGuam are complete, the final FY 2023 MOE will be
calculated. Should the FY 2023 MOE fall short of the baseline, a waiver request will be submitted
to USEd. The submission of final data and waiver request, if needed, will be completed by
December 30, 2024.
Plan to monitor and responsible officials:
The Internal Audit Office will ensure that the final MOE data is calculated and, if needed, a waiver
request is prepared and submitted.
Auditor Response:
Although the Government of Guam’s audited financial statements have not been issued, GDOE
has the ability to coordinate with the Government of Guam’s Division of Accounts to obtain the
State’s preliminary overall spending data for purposes of monitoring the extent of potential MOE
deficiencies. Such monitoring is key in GDOE’s communications with US ED over compliance
with maintenance of effort requirements.