In a letter to Governor Calvo, University of Guam President Underwood responded to claims made by the Governor during a live radio interview that UOG "manufactured" a financial crisis. The Governor claimed the problem was invented to allow a senator to appear as a "knight in shining armor" to save the day.
 
Underwood responded: “Your claim is inaccurate and weaves a conspiracy that is without evidence. It is beneath the dignity of any public official to suggest conspiracies on serious matters.

“In reality, I worked hard with the Lt. Governor (a UOG alumnus) and the Director of the Department of Administration (DOA) to facilitate a payment schedule in order to facilitate a solution to our financial situation. I thank them and commend them for their efforts.”

Two documents were included with the letter that show a budget shortfall of $20M in late August—an unpaid amount that was over 50% of the total FY16 budget and an updated amount of $13.9M in early October.

“Not many institutions or organizations would have been able to survive such a shortfall,” Underwood stated. “The delay of payments strained the University to a point that affected daily operations, including meeting payroll and UOG’s ability to distribute local financial aid to its students at the beginning of the Fall 2016 semester.”

He mentioned that UOG survived by “instituting financial controls on purchasing, capital improvement, and hiring and by depleting cash reserve accounts that are meant for times like these. Throughout the year, we met with DOA several times to discuss payment plans and later, met with them again to make adjustments to those plans when the payments did not arrive as scheduled.”

Underwood ended the letter by stating the importance of recognizing that “accrediting agencies monitor statements by public officials that speak to institutional credibility.

“This is why I need to formally correct any misunderstanding or misinformation about our financial situation.”

Read President Underwood's Letter

Download FY2016 Allotment August Report

Download FY2016 Allotment October Report