A Way To Promote Better Management of Guam's Resources and To Increase Its Self-Reliance
GGD-77-80: Published: Sep 13, 1977. Publicly Released: Sep 13, 1977.
- Full Report:
The Department of the Interior has not prepared the Government of Guam adequately for increased self-reliance, a necessary step in achieving the basic U.S. policy of Guam's self-determination.
Guam's current fiscal crisis underscores the need for Interior's assistance in developing a strong financial management capability. Guam's inadequate budgeting process, inaccurate and untimely accounting system, inability to collect accounts receivable, over-expansion of Government operations, shortages of qualified middle managers, and ineffective federal oversight have hindered Guam's progress toward self-reliance.
Recommendation for Executive Action
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Recommendation: The Secretary of the Interior should increase and broaden technical assistance to the Government of Guam. Specifically, the Secretary should use the capabilities of the Office of Territorial Affairs or other necessary resources to help the Government of Guam: establish a financial management system that includes improved budgeting and accounting methodology and controls; develop a master plan for capital improvement and economic development projects; expand vocational educational programs to produce a local labor force for construction projects; slow the trend toward increased reliance on the Government of Guam to provide employment; and provide training for Government of Guam employees in managerial positions. The Secretary should also assess the status of, and degree to which, recommendations in previous reports of the Government Comptroller have been put into operation and submit to Congress his analysis and comments to assist in congressional consideration of proposed financial assistance.