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Message from the Public Auditor

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Message from the Public Auditor Annual Report Calendar Year 2002 Annual Report Calendar Year 2002 Distribution: Governor of Guam Speaker, 26th Guam Legislature Senators, 26th Guam Legislature All Government Agencies Attorney General of Guam U.S. Department of Interior Office of Inspector General-Pacific Field Office Public Auditor’s Message Hafa Adai! I am his continued commitment to assist the pleased to present insular areas. Mr. Devaney stated that the our second annual strength of the Public Auditors would make report. During his oversight role easier. 2002 we issued nine audit and At this same meeting, David B. Cohen, investigative Assistant Secretary for Insular Affairs of the reports compared Department of Interior announced that the to three in 2001, “level of economic assistance… will be reviewed and determined in part by the strength and issued 13 financial independence of its public auditors.” audits of autonomous While the Guam Legislature expanded the agencies prepared role of the Office five different times, they by independent CPA firms and issued the continued to reduce our budget general-purpose financial statements and incrementally, finally resulting in an 8% single audit reports of the Government of reduction from FY 2002. The OPA barely Guam. These audits have identified over $6 managed to meet these mandates despite million in waste, fraud and abuse. My staff limited staff. However, further reductions to and I were gratified that both the United our budget will impede the OPA’s ability to States Attorney for Guam and Guam’s operate meaningfully and effectively. Attorney General credited our office for issuing audits that helped them make In May, our office hosted the 13th Annual criminal cases for fraud and abuse of APIPA Conference. With 200 participants, it government funds. was the largest APIPA conference ever. Auditors and accountants in government and Government Auditing Standards require that from the private industry from throughout audit agencies be reviewed every three years Micronesia attended the four-day training to assure compliance with these standards. conference. The APIPA conferences are made In November, a peer review team headed by possible through the Pacific Island Training the Public Auditor of Palau, after a weeklong Initiative funded by the U. S. Department of examination of our work, issued the highest Interior Office of Insular Affairs and the USDA rating possible, an unqualified opinion and Graduate School. found our Office to be in “full compliance” with government auditing standards. I again This Office will continue to be a watchdog wish to acknowledge the hard work and over government spending and promote dedication of my staff for the professionalism accountability and fiscal responsibility in our and commitment they have shown government. throughout the year in all aspects of our work. Special recognition goes to Randall Wiegand, the Audit Manager who oversaw the Senseramente, OPA reports we issued. U.S. Department of Interior Inspector General Earl Devaney hosted the second Doris Flores Brooks, CPA, CGFM annual meeting with the Public Auditors of Public Auditor of Guam the Pacific Region. Mr. Devaney expressed Mission Statement OPA Receives “Full Compliance” in Quality Control Review The Office of the Public Auditor seeks to achieve independent and Who audits the Auditor? Every so often, nonpartisan assessments that promote the proverbial question surfaces. accountability and efficient, effective Government Auditing Standards issued management throughout the by the Comptroller General of the Government of Guam. We seek to serve United States require that audit the public interest by providing the organizations undergo a quality control Governor of Guam, the Guam review every three years. In Legislature, and the People of Guam November 2002, the OPA underwent its with dependable and reliable second quality control review or peer information, unbiased analysis, and review as it is often called. The first objective recommendations on how peer review of the OPA was in August best to use government resources in 1999. The 2002 peer review team support of the fiscal well being of our consisted of the Public Auditor of Palau island and our people. To achieve this and one of his supervisory staff along mission, we: with a consultant from the U.S. Department of Agriculture Graduate Endeavor to fulfill the highest School. After a week of examining the standards of our profession and the expectations of the public to the best of our ability. Uphold the highest ethical standards in the performance of our work and encourage such standards throughout the Government of Guam. Commit to quality as the main principle governing our work. Perform our work with diligence, conscientiousness, and due professional care. Foster a partnership with our staff OPA Employees Celebrate their Full Compliance Peer to enable them to reach their full Review. From left to right: Fred Cantoria, Jackie Vaughn, Doris Flores Brooks, Yuka Cabrera, Pete Tajalle, Chris potential and contribute to their Duenas, Francis Quinto, Randy Wiegand, and Don growth and long-term success. Laureano. Work collaboratively with the entities that we audit and with the contracted auditors we employ so as OPA’s audit work papers to scrutinize to develop harmoniously improved how well we complied with government financial controls. auditing standards in developing our audits, the hours of preparation and the OPA’s adherence to auditing standards paid off. The OPA received an unqualified opinion, or full 2 compliance report, indicating that its The OPA website also provides a hotline system of internal quality controls was tip submission form, more information suitably designed and that no material on the office, and links to other deficiencies were noted. A copy of the websites related to the mission of the full compliance report is provided in office. By the end of 2002, there were Appendix 1. The OPA’s next scheduled 25 audit and information releases on peer review is in approximately three the website. For the year, over 34,000 years. hits were made to our website, with November having nearly 6,000 hits and January over 5,000 visits. See Appendix OPA Website Launched 7 for a complete listing of releases. On January 4th 2002, the official The OPA thanks its Webmaster, iCON website of the Office of the Public Corporation, for all the effort it has Auditor was launched. The website devoted to the maintenance of the provides an avenue for the public to website and invites everyone to browse conveniently access audits and other the site at www.guamopa.org. information on Government of Guam entities at the click of a button. Visit our website www.guamopa.org. You can access audit reports, view old releases, and report a tip or concern. 3 OPA Relocates Office that Guam OPA was host, the first one being in 1996. As host, all OPA In 2001, the OPA received a memo from employees were involved in preparing the Guam International Airport for the conference in one facet or Authority (the landlord for all Tiyan another. The conference, held at the offices) indicating that it would begin Guam Marriott Resort from May 20 to charging rent to the Government of May 24, was a huge success. Over 200 Guam tenants in the Tiyan area. participants from the government and Although the OPA had been private sectors attended the Guam contemplating relocation to a more conference, making it the largest APIPA conducive working environment prior to training conference ever. This the memo, the imminent conference offered three training discontinuance of rent-free occupancy tracks, one for auditors, another for made the decision to move an easy supervisory and management auditors, one. In the final week of March 2002, and a new track for financial after reviewing five proposals to our accountants. Participants were free to published request for proposals, the select sessions in any of the tracks. OPA officially relocated its offices to Among the variety of courses offered the Pacific News Building, more were GASB 34 Requirements, How to commonly known as the PDN Building. Obtain an Unqualified Opinion, The office address is now: Effective Audit Supervision, Management Accountability and Pacific News Building, Suite 401 Controls, How to Analyze Your 238 Archbishop Flores Street Autonomous Government’s Agencies’ Hagåtña, Guam 96910. Financial Health and Ethics in Government. APIPA GUAM 2002 Participants received up to 32 hours of Every year, the Association of Pacific continuing professional education (CPE) Islands Public Auditors (APIPA) holds a credits for the courses they attended. conference in one of the member The instructors for the conference were islands. APIPA, formed in 1989, now funded by the USDA Graduate School at consists of twelve members, the Public no cost to APIPA or the Government of Auditors of American Samoa, Guam. For the past decade the Commonwealth of the Northern Department of Interior Office of Insular Mariana Islands, Guam, Republic of Affairs through the Pacific Island Palau, Republic of the Marshall Islands, Training Initiative (PITI) has been the Federated States of Micronesia providing funding to the USDA Graduate (FSM) National Government, the FSM School for training throughout the states of Pohnpei, Yap, Chuuk and insular governments. At the Kosrae, Western Samoa, and, the conference, Senators of the 26th Guam newest member, the Virgin Islands. Legislature presented a resolution to James Johnson, Director of Technical In 2002, it was Guam’s turn in
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