The latest audit conducted by the Office of Public Accountability on the government of Guam oversight on ARRA funds states that of the $234.6 million in ARRA funds received, only $82.9 million, or 35 percent, had been expended or encumbered.
The $234.6 million in ARRA funds awarded as of Sept. 2010 include $119.1 million, or 51 percent, for education; $77.6 million, or 33 percent, for infrastructure; $17.9 million, or 8 percent for general government; $14.3 million, or 6 percent for public health and safety; and $5.7 million, or 2 percent for transportation.
Pressure
In addition, the Office of Public Accountability states that because of the looming pressures to use the ARRA funds by the obligation deadline, an increase in fraud, errors or omissions may occur.
The Bureau of Budget Management and Research, which has oversight over Guam’s implementation of ARRA, contends in its defense, that the regulation requiring attorney general approval on procurements of $500,000 or greater hinders the timely spending of funds.
However, the Office of Public Accountability says this regulation is necessary and acts as an independent control to mitigate the risk of fraud, errors or omissions.
The audit mentioned Public Law 31-12, passed in February, which provides temporary expedited procurement protest procedures for Department of Education ARRA-funded acquisitions.
It also cited the governor’s “ARRA Rapid Response Team” created in February to ensure maximum and expeditious usage of the funds.
Role
The report also states that then Bureau of Budget Management and Research Director Bertha Duenas maintained that the agency’s role, despite being delegated as the lead agency for GovGuam’s implementation, was to ensure compliance with reporting deadlines.
Duenas also said that lack of funding, capacity and training limited BBMR’s role in performing additional oversight functions.
A website that BBMR established to provide public access to ARRA information also “lacked transparency and sufficient accountability,” the Office of Public Accountability stated.
For example, discrepancies were found in the amounts BBMR reported online and the audit. While the federal websites reported $281.7 million in ARRA funds was awarded to Guam, of which $236.6 million was for public agencies, the audit states only $234.6 million was awarded — a $2 million difference.
In addition, the website lacked adequate information to be able to track the status of projects and the activities of the recipients.
