Guam lawmakers hear rival bills to force timely submission of government audits

The Committee on Finance and Government Operations held a public hearing Feb. 14 to consider two competing bills aimed at forcing timely submission of government audits and related financial data to the Office of Public Accountability (OPA).

Senator Tello Tadegwu, sponsor of Bill 14-38 COR, said the bill would amend chapter 19, title 1 of the Guam Code Annotated to require agencies to submit program and financial information by set deadlines and impose a $250 fine for late filings. "We rely on accurate and timely financial data," Tadegwu said, saying the annual comprehensive financial report (ACFR) is due June 30 and that delays have occurred repeatedly: "It's time we uphold these standards and demand accountability from our directors." She said fines collected would be directed to the Guam Memorial Hospital Authority operations fund.

Senator William A. Parkinson introduced Bill 47-38 COR, a separate measure that would withhold an agency director’s salary and benefits until required financial audit documents are submitted. "If our elected officials are required to meet financial deadlines or risk losing their salaries, then agency directors who are responsible for overseeing public funds must be held to the same standard," Parkinson said, arguing that fines can be absorbed and thus are a weaker deterrent than withholding compensation.

Public Auditor B.J. Cruz and OPA staff testified in support of the intent of both bills. Cruz apologized for recent audit delays and described efforts the OPA has taken to accelerate work, including contracting deadlines that now target component-unit audit completion by Feb. 29 and the government-wide audit by March 31. "It pains me that over the last two years that it's not gotten out in a timely fashion," Cruz said. He and OPA staff said late or incomplete submission of data from agencies — and specific delays in producing an OPEB (other post-employment benefits) actuarial report — have been primary causes of multi-month delays in issuing the fiscal-year audits.

OPA senior staff described operational impacts: the fiscal year 2023 government-wide audit was issued Feb. 8, 2025, eight months after the June 30 deadline and more than a year after the fiscal year end, and OPA said other component audits (Guam International Airport Authority, Guam Power Authority, Guam Waterworks Authority, and the Government of Guam Retirement Fund) were blocked pending DOA-provided OPEB disclosures. The public auditor also reported repeated follow-ups and the use of Freedom of Information Act requests as a tool when agencies do not respond.

Committee members questioned OPA about applying deadlines and penalties to performance and compliance audits as well as financial audits. Cruz and staff said the authority in the bills could be used to require information for performance audits (for example, a textbook procurement audit) and that requests are usually grounded in written criteria such as SOPs, statutes or regulations. OPA witnesses said they are generally reasonable with extensions but face staffing and record-keeping gaps in some agencies.

Members noted prior history: a similar measure (Bill 213-37) was vetoed by the governor and a veto-override effort failed in the previous legislature. Senator Barnett and others said they will support renewed efforts to pass accountability measures and warned that passing legislation will require votes sufficient to override any possible veto.

The committee did not take a vote on either bill at the hearing; both measures remain under consideration. Chairman Senator Christopher M. Duenas said his office and the Office of Finance and Budget will hold an informational briefing in coming weeks and continue to accept written testimony for seven days. The committee also signaled possible further policy steps to require on-time audits in the current budget cycle.

Action status and next steps: both bills were presented, discussed, and supported in intent by OPA and several senators, but no formal vote or final action was recorded during the hearing. The committee will continue to collect written testimony and may move either bill to the session floor for a vote.