By Gerardo R. Partido
Variety News Staff

THE Guam Economic Development and Commerce Authority made considerable financial strides in fiscal year 2006, ending the year with a net income of $186,000 compared to a loss of $460,000 in FY 2005, the Office of the Public Auditor announced yesterday in its latest report.
Although GEDCA’s operating revenues declined by $57,000, from $1.9 million in FY 2005 to $1.8 million in FY 2006, the agency’s operating expenses decreased by a larger margin.
GEDCA curbed operating expenses by $183,000, from $1.9 million in FY 2005 to $1.7 million in FY 2006. The decrease in operating expenses was attributed by OPA to a decrease of $83,000 in expenses for professional services, $33,000 in depreciation and amortization, and $89,000 for doubtful accounts.
According to OPA, GEDCA continues to maintain a healthy cash position and has increased its overall net assets. During the year, GEDCA employed aggressive collections on its accounts receivable, which resulted in accounts receivable declining by $1 million, from $1.5 million in FY 2005 to $433,000 in FY 2006.
GEDCA also realized a $1.5 million increase in investments going from $1 million in FY 2005 to $2.5 million in FY 2006.
In addition to having a stronger financial position, OPA also noted other improvements instituted by GEDCA during the year.
In prior years, the Guam Development Fund was considered a federal grant. But after discussions with the U.S. Department of the Interior, the monies reported in the GDFA are no longer classified as federal funds and are now considered local funding for use in developing private industry.
As a result, GEDCA incurred only $190,000 in federal expenditures during the year. The total federal expenditures fell below the single audit requirement of $500,000, therefore an A-133 compliance report was not required.
OPA said GEDCA’s management also made great strides to reduce audit findings, as FY 2006 marked the first year the agency did not have a single audit finding reported.