A financial audit of Guahan Academy Charter School’s financial highlights for Fiscal Year 2025 shows the school received a clean opinion from independent auditors Ernst & Young LLP.

However, the audit also flagged GACS for three significant deficiencies.

The school reported total revenues of $6.5 million in FY 2025, marking a $507,000 decrease compared to total FY 2024 revenues.

The audit attributes this decrease to a loss in other revenue and a $420,000 reduction in per-pupil allocations.

Despite the drop in revenue, overall expenses for GACS decreased by 10%, a reduction attributed to decreases in contractual services, books and resources, and supplies.

A closer look at the funding reveals that General Fund revenues included a total of $6 million in appropriations in FY 2025.

This financial period coincided with a notable decline in enrollment, which dropped to 625 students by year’s end, 160 students less than the 785 who enrolled at the top of the fiscal year.

In contrast to the overall revenue decline, federal fund revenues increased by $340,000, rising from $553,000 in FY 2024 to $892,000 in FY 2025. This Increase was a result of funds from the federal emergency management agency public assistance, child nutrition program, americorps, and consolidated grant and american rescue plan funds.

Regarding the deficiencies, the audit noted three issues: Improper recording of grant money, improperly assessing unused employee leave liability, and recording expenses before services were completed.

In a separate management letter, EY LLP recommended that management ensure bank reconciliations are updated, and that GACS consider the non-recognition of revenues and expenses for contributed service.

Another key takeaway was the school’s facility status.

The school’s lease to use three buildings in Tiyan at no cost, under an agreement with the Government of Guam, was set to expire in June 2023. The Memorandum of Agreement requires GACS to incur certain restoration expenses, estimated at $89,000 in September of last year, should it vacate the location.

However, the report noted that the Office of the Governor had confirmed gacs could remain despite delays in processing a new agreement back in 2023.

The audit says the government has not taken any steps to proceed with unlawful detainer, sought rent, or interrupted the school’s presence on the property.

GACS has since requested continued use while securing financing for a new facility, subject to maintaining a valid charter and compliance with MoA terms, as a proposed new facility is on the table.

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