By Gerardo R. Partido
Variety News Staff

THE U.S. Department of Education has cleared the Guam Public School System of any liability for the purchase of two 22-passenger mini buses with wheelchair lifts.
The purchase of the buses, which cost $214,257, was originally questioned by the federal government because the USDOE rules for the use of federal funds require GPSS to obtain prior approval for the purchase of assets in excess of $5,000.
But GPSS said that at the time of the purchase, it believed that the requirement to obtain prior grantor approval was not applicable to the purchase.
According to GPSS, it had already obtained grantor approval to purchase five additional buses in May 2005.
The auditor, Deloitte & Touche, recommended that GPSS enforce internal controls to ensure that the required prior approval is obtained for all federally funded GPSS capital expenditures.
The auditor said the GPSS business office should not charge capital expenditures to a federal program unless the payment request is supported by prior, written grantor approval.
Capital expenditures without prior grantor approval should be charged to the general fund until such time as written grantor approval is obtained.
The USDOE has sustained the GPSS auditor’s finding. But in a letter to GPSS Superintendent Luis Reyes, the USDOE said it will not seek recovery on the questioned purchase of the buses.
The USDOE pointed out that subsequent to the audit, GPSS had already obtained written approval for the purchase of the buses under Part B of the Individuals with Disabilities Education Act, also known as IDEA-B.
“Consequently, because GPSS is following the proper procedure for obtaining prior approval for the purchase of equipment with IDEA-B funds, the (USDOE) Assistant Secretary considers this funding question to be resolved and closed,” the USDOE informed Reyes in its letter.