Superintendent Dr. Nerissa Underwood has until Oct. 13 to defend her department against the federal threat of a third-party receivership and withholding of federal funds.
GDOE’s failure to adhere to these conditions can ultimately lead to a suspension of funding or a loss of funds in current and future grant awards which could include $62 million in stimulus grants, $24 million in consolidated funds, $15 million in special education funds; and up to $5 million in discretionary funds.
In his Sept. 28 letter to Underwood, Risk Management Service Director Phil Maestri said, “Altogether, there is a marked lack of progress by GDOE in addressing its financial management deficiencies and its continued failure to fully implement a credible financial management system affects the overall effectiveness of GDOE’s administration and management of department funds, particularly in the areas of general accountability, procurement and property management.”
USDOE’s concern also focused on the government of Guam and GDOE’s application for funds under the American Recovery and Reinvestment Act program.
“Recent developments in GDOE heighten the Department’s concerns about the management of, and accountability for, department funds, especially as the Department considers GDOE’s and the government of Guam’s applications for funds under the American Recovery and Reinvestment Act of 2009,” Maestri said.
