March 24, 2005

The Guam Community College (GCC) has released its audited financial statements for fiscal year ending September 30, 2003, eight months after the due date of June 30, 2004. The auditor issued an unqualified opinion and there were no questioned costs noted. GCC remains among the few Government of Guam entities to again qualify as a low risk auditee.

The audit conducted by Deloitte & Touche LLP, revealed that GCC had an increase in net assets of $1.8 million (net assets is the government accounting term for the excess of revenues over expenses). In 2002 GCC’s increase in net assets was $2.2 million. The $400,000 decline was primarily due to the reduction in Government of Guam appropriations from $13 million in 2002 to $12.2 million in 2003. Government of Guam appropriations are the primary source of revenue for GCC, accounting for nearly 60% of revenues.

Despite the reduction in Government of Guam appropriations, GCC reduced its cost of operations by $334,000. Operating revenues increased nominally to $8.8 million and GCC reduced its operating expenses by $310,000 from $19.5 million to $19.2 million.

Expense reductions occurred in operation and plant maintenance of $469,000 and academic support of $357,000, however, these reductions were offset by the $542,000 increase in scholarships and fellowships expenses funded by the Federal Pell Grant Program. As of the end of the fiscal year, the full-time number of employees was 180 compared to the previous year of 188.

In the report on compliance there were two findings dealing with fixed assets compared to only one in 2002.

For a detailed analysis see the Management Discussion and Analysis.