Guam Department of Education asked to explain over-expenditures of CARES ACT, ARP funds
By Pacific Island Times News Staff
The Guam Department of Education used pandemic funds to cover regular salaries and some of the 14-point requirements of the adequate education law, which were beyond the federal grants' intended purposes, according to the Office of Public Accountability.
The OPA’s audit found over-expenditures of funds the department received through the Coronavirus Relief and Economic Security Act, or CARES Act, and the American Rescue Plan Act.
The U.S. Department of Education awarded GDOE $111 million in Education Stabilization Fund under the CARES Act, and $287 million in ARP funds.
Of the $124 million in ARP funds expended, the largest expenditures included $60 million for regular salaries and $6 million for contractual expenses.
Other expenditures included school supplies, utilities and other costs related to the Every Child is Entitled to Adequate Education Act, a local law mandating the government of Guam to provide an adequate number of qualified teachers and health professionals, safe facilities, properly ventilated classrooms and healthy environment for public school students.
“It must be noted that the ESF II and ARP grants were not specifically intended to address 14 Points,” the OPA noted. “Expenditures were made to meet a variety of needs, and alignment with the 14 Points were determined subsequently based on the data provided.”
The ESF is an investment of over $276 billion into state and institutional Covid-19 recovery and rebuilding efforts "to prevent, prepare for, and respond to the coronavirus impacts on education for our nation's students."
The audit found that $90 million in ESF II funding was allocated to public schools from Jan. 13, 2021, to Sept. 30, 2022. As to the ARP grant, $265 million was allocated to public schools from April 8, 2021, to Sept. 30, 2023.
“Based on data as of Nov. 6, 2024, ESF II reported $2 million in encumbrances and $97 million in actual expenditures, resulting in a potential $9 million over-expenditure for the public schools budgeted allocation,” the OPA said.
“Similarly, ARP reported $145 million in encumbrances and $124 million in actual expenditures, leading to a potential $4 million over-expenditure. It’s important to note that although the Public Schools District appears to have exceeded their allocated budget amount, the overall ESF II and ARP grants were not over-expended.”
Despite several follow-ups, the OPA said, the agency has yet to explain the reported over-expenditures.
The U.S. Department of Education has approved the local department’s request for an extension of ESF liquidation until March 28, 2025, and for ARP until March 28, 2026.
“Funds drawn during these extensions must be used to liquidate obligations incurred on or prior to September 30, 2023, for ESF II, and incurred by Septe. 30, 2024, for ARP, with approval by U.S. Ed.,” OPA said.
Grant details
Of the $97M expended under ESF II, the most significant expenditures included:
$43M for Point 13, with $23M for supplies and $7M for contractual expenses.
$29M for Point 8, covering power expenses.
$10M for Point 7, addressing water expenses.
Of the $124M of ARP funds expended, the largest expenditures included:
$70M for Point 13, with $60M going to regular salaries and $6M for contractual expenses.
$23M for Point 12, which was primarily for school maintenance, including funding refurbishment projects in the Kattan ($4.03M), Luchan ($3.57M), Lagu ($2.98M), and Haya ($921K) regions.
$12M for Point 8, covering power expenses.
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