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Guam committee debates auditor authority to audit nonprofits receiving $200,000 or more
Summary
The Committee on Finance and Government Operations heard Bill 65-38 COR to clarify that nonprofits receiving cumulative government funding above $200,000 may be audited by the public auditor. Senators praised the objective but asked for lower thresholds and reporting requirements; the author said the threshold came from the Office of Public Auditor and pledged to work on amendments.
The Committee on Finance and Government Operations convened Feb. 6 to hear Bill 65-38 COR, introduced by Speaker Frank F. Blas Jr., which would amend Section 1908 of Chapter 19, Title 1, Guam Code Annotated, to clarify that nonprofit and nongovernmental organizations that cumulatively receive more than $200,000 from any government entity may be subject to audit by the Office of the Public Auditor.
Supporters said the change aims to increase transparency and ensure public funds are spent efficiently. "If they receive, in excess of cumulatively, in excess of $200,000 or more, they can be audited by the public auditor to ensure that there's transparency, there's efficiency, there's effectiveness in how the monies are being spent," Speaker Blas said during his opening remarks.
Senator Sean Gumitato asked the committee to document how much of the $198,200,000 in federal matching grants recognized in the 2026 General Appropriations Act supports nonprofits, and whether reports due to grantors by Jan. 20, 2026, were submitted. He also cited Office of Public Auditor (OPA) Report 25-01 (Jan. 2025) showing 1,536 nonprofit registrations with 625 active and 911 inactive or revoked as of Aug. 2023, and requested follow-up data on how many have been reinstated as of Dec. 31, 2025.
Other senators urged caution about the $200,000 threshold. "Any money that the government spends, when they pass this on or give to nonprofit, everything should be audited," Senator Joseph Augustine said, recommending the committee reconsider the specified amount. Senator Tydigui echoed that a fixed $200,000 threshold could miss medium-sized grants and suggested adding a reporting requirement that nonprofits submit activity reports to the legislature.
Speaker Blas said the $200,000 threshold was discussed with the Office of the Public Auditor and that he is open to lowering the threshold and adding reporting requirements. The committee had not received written testimony from OPA at the time of the hearing; Blas told senators he would work with OPA and committee staff during the markup process to draft amendments.
No formal vote was taken during the public hearing. The committee will remain open for written testimony for seven calendar days and will consider amendments during the markup stage.
The committee asked staff to collect the data noted by Senator Gumitato and to circulate proposed language for any threshold or reporting changes before markup.
