AUDIT: GPT loses half of its main revenue sourceWritten by Donna De Jesus
Guam - While the Guam Preservation Trust had a $2.6 million net loss at the close of Fiscal Year 2016, the Office of Public Accountability commended GPT for its second year without internal compliance deficiencies.
According to a recent audit, GPT’s net loss was due to an increase in expenditures for grant projects of $2.1 million. GPT had $5.8 million in grants for 36 approved projects in FY 2016, but only expended $3.1 million, most of which was spent on the rehabilitation and reconstruction of the Guam Congress Building.
In addition to that, the audit reports a reduction in GPT’s main revenue source by half. Building permit fees account for 87-percent of GPT’s total revenue, and Public Law 33-66 reduced GPT’s previous allocation of building permit fees from 100-percent to 50-percent. The other 50-percent was divided between the Department of Public Works’ Building and Design Fee Account and the Guam Museum Fund. Because of this reduction, the OPA has recommended that GPT regularly update its budgets and cash flows so that the corporation can continue to operate.