VICE SPEAKER CALLS ON DRT TO SETTLE DISPUTE OVER FY13 GOV’T AUDIT
(July 23, 2014 – Hagåtña) In preparation for the year’s budget process, Vice Speaker Benjamin J.F. Cruz has called on the Department of Revenue and Taxation (DRT) to provide information regarding the $22 million in disputed Section 30 funds that has been applied to the total federal income collections for fiscal year 2013 but whose collection status has yet to be confirmed.
DRT director John P. Camacho and deputy director Marie M. Benito appeared before the Committee on Aviation, Ground Transportation, Regulatory Concerns, and Future Generations during an oversight hearing conducted this morning.
“This Freedom of Information Act (FOIA) request has been addressed to the Department of Revenue and Taxation (DRT),” Cruz writes in his letter to Camacho,“because I have been informed that at least $15,000,000 of the $22,869,385 in additional Section 30 revenue that was recognized, was permitted on the basis of communications, formal or otherwise, between DRT and the federal government.”
In a government-wide audit report for FY 2013, Deloitte & Touche LLP applied a total of $22,869,385 in additional “Section 30 Funds” to the FY 2013 Section 30 Federal Income Tax Collections total of $96,104,113 for FY2013. This addition was made without receipt of these funds, $15 million of which remains uncollected as of July 14, 2014.
Cruz added that despite numerous official communications and media statements made by the late Speaker Ben C. Pangelinan, Congresswoman Madeleine Z. Bordallo, and Governor Eddie B. Calvo and his communications staff regarding these funds, there has been no official communication confirming the exact amount GovGuam stands to receive in additional Section 30 funds, the date of receipt of such funds, nor the authority of GovGuam to retain the additional Section 30 funds without a federal offset.
In the FOIA letter to Camacho, Cruz is requesting information regarding the $7,869,385 and $15,000,000 in additional Section 30 revenue that was recognized in the Department of Administration’s AS400 financial management system on June 23 and June 26 respectively, to include payment status, dates of notification and transfer, and confirmation of pending deposits from the federal government.
Additionally, Cruz is seeking all communications and documentation regarding these two amounts, and a determination whether GovGuam’s $22-million debt in unused funds that were paid in advance for the Making Work Pay Tax Credit will impact the additional Section 30 revenues due to Guam.
Referenced documents are attached. For more information, please call the Office of the Vice Speaker at 477-2520 or 687-7567.