"UOG has been a good steward by investing these surpluses in (certificates of deposit), money market funds, etc."

– Public Auditor Doris Flores Brooks

Public Auditor Doris Flores Brooks isn’t convinced the University of Guam’s financial situation is dire.

Brooks said, based on an audit of UOG’s finances in fiscal year 2016, and based on its financial records for 12 of the last 14 years, UOG was averaging a surplus of $3 million a year.

“UOG has been a good steward by investing these surpluses in (certificates of deposit), money market funds, etc.,” according to the public auditor.

Of the university’s total investments of $42 million as of fiscal 2016, $6 million was restricted, but $14 million was in unrestricted, short-term investments and $41 milion of internally restricted investments under the UOG board “may be made available for operations,” according to the public auditor.

Brooks was reacting to a letter UOG President Robert Underwood wrote to Gov. Eddie Calvo and Speaker Benjamin Cruz more than a week ago. In the letter, Underwood said the university was still owed nearly a third of the fiscal 2017 budget appropriations it was supposed to receive.

In the Oct. 11 letter, Underwood wrote that around a third of last fiscal year’s appropriations to UOG had not been received, and the situation has created a significant financial hardship at the university.

Speaker Cruz has said to Department of Administration Director Christine Baleto, “While the university has averted a payless payday thus far ... the recent dearth of cash allotment payments is starting to elevate concerns over the ability to meet payroll.”

UOG: Waiting on $9.7M

About $9.7 million of UOG’s fiscal 2017 appropriation has not been received, according to Underwood’s letter.

This constitutes about 32 percent of the university’s $30 million appropriation, according to the university.

The governor’s office also on Thursday said in response to the speaker’s concerns, Baleto will attend an oversight hearing Cruz has called on the finances of UOG and other education institutions.