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FY 2006
Financial Highlights February 7, 2007 The fiscal year 2006 audited
financial statements prepared by Deloitte & Touche,
issued just over four months after the fiscal year end, reveals the Guam
Economic Development and Commerce Authority (GEDCA) has made considerable
financial improvement by ending the fiscal year with net income of $186 thousand compared to the loss of $460
thousand sustained in FY 2005. Although GEDCA’s operating
revenues declined by $57 thousand going from $1.9 million in FY 2005 to $1.8
million in FY 2006, operating expenses decreased by a larger margin. GEDCA curbed operating expenses by
$183 thousand going from $1.9 million in FY 2005 to $1.7 million in FY 2006.
The decrease in operating expenses was mainly attributed to the decrease of
$83 thousand for Professional Services, $33 thousand in depreciation and amortization,
and the $89 thousand for doubtful accounts. GEDCA continues to maintain a healthy cash
position, and increased its overall net assets. During the year GEDCA employed
aggressive collections on its accounts receivable, which resulted in accounts
receivable declining by $1 million dollars, from $1.5 million in FY 2005 to
$433 thousand in FY 2006. GEDCA
also realized a $1.4 million increase in investments going from $1 million in
FY 2005 to $2.5 million. GEDCA
closed the year with a $37 thousand gain on investments, an increase of 180%
compared to the prior year.
In addition to improving their financial
position, other noteworthy improvements were made during the year. In prior years, the Guam Development
Fund (GDFA) was considered a federal grant, after discussions with the U.S.
Department of the Interior, the monies reported in the GDFA are no longer
classified as federal funds and now are considered local funding for use in developing
private industry. As
a result, GEDCA incurred only $190 thousand in federal expenditures during
the year. The total federal
expenditures fell below the single audit requirement of $500 thousand
therefore an A-133 compliance report was not required. The independent auditors reported no material weaknesses
involving the internal control over financial reporting in GEDCA
operations. During the year, GEDCA’s management made great strides to reduce
audit findings, as FY 2006 marked the first year the agency did not have a
single audit finding reported or a separate management letter. For a more detailed commentary of GEDCA’s operations, refer to the Management Discussion and Analysis in the audit report. |
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