THE Office of Public Accountability said it found numerous deficiencies in its Fiscal Year 2010 audit of the 66th Liberation Day Committee (LDC), including the inability to verify receipts and ticket log.
Independent Auditors Deloitte & Touche issued a “qualified opinion” on the committee’s funds due to an inability to verify the classifications of $49,000 in deposits and $33,000 in disbursements.
Some of the areas of deficiencies identified include the lack of adequate financial reporting and failure to comply with procurement regulations.
The issues in FY2010’s LDC audit were also similar to that of its previous fiscal year audit, the OPA said.
These deficiencies include ticket issuance logs not being reconciled; report of unsold or returned tickets not provided; lack of receipts; lack of invoices, billings, contracts, or bank statements; no form 1099 for services exceeding $600; and lack of documentation verifying LDC’s nonprofit status.
With regard to procurement regulations, OPA said about $74,000 of disbursements were not supported by any procurement documents among other procurement violations.
According to OPA, the total LDC receipts amounted to $381,000. That amount was attributed to $241,000 from concessionaries, $89,000 in ticket sales, and $49,000 in unclassified amounts.
Disbursements, on the other hand, amounted to $371,000, which was comprised of commission ($81,000); power and installation ($41,000); fireworks ($33,000); security services ($21,000); and sound system for the carnival and parade ($21,000).
Of the $81,000 in commissions, $50,000 was paid to the Mayors’ Council of Guam and the remaining balance was paid to the Liberation Day queen candidates and their sponsors.
