Guam News - Guam News
Guam - The University of Guam will not qualify as a low risk auditee in FY 2012 according to the latest audit released by the Office of Public Accountability.
The reason is a qualified opinion in one area of compliance cited by independent auditors Eide Bailly.
The report states: "The University of Guam, did not comply with requirements relating to disbursing credit balances created from financial aid funds to students within 14 days of when the credit bal;ance occurred ... Compliance with such requirements is necessary, in our opinion, for University of Guam, to comply with the requirements applicable to that program."
There were 12 instances out of 120 students tested wherein credit balances were not reimbursed to the student within 14 days.
READ UOG's release in FULL below:
UOG 2011 Audit: Increases in Enrollment, Graduates, Grants and Net Assets
UOG’s FY 2011 audit showed another year of significant increases in student enrollment and graduates, operating revenues, Federal grants and contracts, and net assets.
President Robert Underwood said, “The University’s audit points to an engaged, financially sound institution committed to the mission of student learning, academic quality, research, and community projects. Our 60th anniversary allows us to reflect on the significant growth and changes that have occurred at all levels over the last six decades and shows our relevance and capacity to produce positive outcomes for our island and region for another 60 years.”
“The University has achieved clean audits and strong financial results over a number of years in a difficult economic and financial environment,” said Vice President of Administration and Finance David O’Brien. He also pointed out the importance of local government appropriations to the University’s growth, “Without a consistent base of financial support from the government, the University could not have open student admissions or generate federally funded grants. We can do more with more, but recognize the limits of today’s financial circumstances.”
READ the Audit Highlights HERE
FY 2011 audit highlights include:
· 3,721 students were enrolled in Fall Semester 2011, marking the highest enrollment in the last twelve years. 488 students graduated in Academic Year 2010-11, the highest number since 2000. The University has conferred over 13,500 degrees and has over 12,000 alumni.
· The University has recorded a financial surplus in eight of the last ten years, living within its means. Net assets grew by $4.5 million (4.6%), which is $0.5 million less than last year.
· $98 million marks the University’s highest level of total revenues. The record levels of grants/contracts and student enrollment led to an 8.1% revenue increase over the prior year, which, in turn, drove expense increases of 7.4%. Expense increases were necessary to achieve the new levels of student enrollment and federal grants.
· The University’s operations generated 67% of total revenues, while government appropriations support decreased to 33%. Appropriations for FY2011 were approximately 50% of total revenues ten years ago.
Federal grants and contracts grew $9.5 million (27%) to $45 million, a record high. Senior Vice President Helen Whippy stated, “Federal and other grants fund community needs. These include student Pell grants, cancer research, alternative energy and green projects, and the ARRA stimulus for technology infrastructure and building renovations.”
Auditors Eide Bailly identified one material, non-compliance finding related to untimely disbursement of financial aid credit balances and a significant deficiency related to an un-reconciled financial aid report submitted to USDOE. As a result, the University will not maintain its federal low risk auditee status in FY12. There were no repeat findings or deficiencies from the prior year, nor any questioned costs. The University has taken steps to improve controls in these areas. VPAF O’Brien stated, “The audit compliance report was qualified for one major program, federal financial aid. UOG’s other 100+ grants from 14 federal agencies are compliant. The University’s grants remain well managed.”
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