May 2, 2004
The Guam Educational Telecommunications Corporation, also known as KGTF
Channel 12, is the second Government of Guam agency to issue its audited
financial statements for fiscal year ending September 30, 2003, two months
before the required due date of June 30th. According to the audited financial
statements conducted by Burger and Comer, KGTF Channel 12 had a loss
of $312,000 for the fiscal year ended September 30, 2003. The loss was
primarily due to depreciation expense of $294,000.
KGTF’s revenues were $1.1 million compared to $1.2 million in FY
2002. Support and revenues consisted primarily of $397,000 in General
Fund appropriation, $465,000 in Community Service Grant (CSG) from the
Corporation for Public Broadcasting and $245,200 in contributions. The
revenue decline was attributed to less government support, lower CSG
grants, and less contributions. KGTF has 20 employees, 10 of whom are
government employees locally funded. The other 10 employees are paid
by the Community Service Grant and are not members of the Government
of Guam retirement system. Expenditures for FY 2003 were $1.43 million
and dropped by $136,000 compared to $1.56 million in FY 2002.
In KGTF’s report on compliance and internal controls, there were
two findings cited. Among those findings, KGTF’s Board of Trustees
met only once during fiscal year 2003, mainly due to a lack of quorum;
adequate procedures are not in place for the use of purchase orders.
Six of the newly appointed board members were confirmed by the Guam Legislature.
One board member is the stepson of the Public Auditor.
In a separate management letter, Burger & Comer commented on such
issues as the lack of Board approval for the travel of the Chairman and
implementation of the 403(b) plan for non-government employees without
Board approval. For a more detailed discussion on KGTF’s operations,
see the Management’s Discussion and Analysis.