October 28, 2003

The FY 2000 audit of the Tourist Attraction Fund has been completed by Ernst and Young. The audit, which is more than two years late, shows that the TAF generated $20.2 million in hotel occupancy tax revenues in FY 2000, up 6% from prior year’s hotel occupancy tax of $18.9 million.

Expenses totaled $11.5 million. This amount includes debt service of $4.8 million, capital project expenditures $5.9 million, recreation expenditures of $653,000, and education expenditures of 90,000. Another $12.5 million was transferred out to the Guam Visitors Bureau for their operations.

In the Capital Projects Fund there is approximately $30 million in on going appropriations yet to be completed, although there is sufficient investments of $36 million to complete the various projects. (See pages 13 and 14 for a detailed listing of the projects.)

In the Report on Compliance and Internal Control, there were three findings all pertaining to timely reconciliations of interfund receivables and payables and tax receivables.

The 1997 Series A bond issue was $75.4 million at the end of FY 2000. The Hotel Occupancy Tax has been pledged to pay this debt. The debt is expected to be fully paid off by 2017. The interest associated with the remaining balance of $75.5 million balance will total approximately $35 million.