The American Samoa Government did not have a balanced budget at the close of Fiscal Year 2016, finishing the year with a deficit of $3.1 million.
That’s according to the Single Audit Report for ASG for FY2016 prepared by Moss Adams LLP.
Having a balanced budget has been one of the major goals of the Lolo Lemanu Government and is a factor in the rating and repayment of the American Samoa Economic Development Authority bonds.
The Lolo and Lemanu administration can be credited for reducing the deficit which stood at $9.1 million in FY2015 to $3.1 million. This was realized by a surplus of $6, 053,652 in 2016.
ASG’s total net position decreased by $4.9 million or 2.0%,
According to the audit, ASG’s total revenues came to $259,093,936, a drop of nearly $10 million from the year before.
Revenues from government activities, that’s taxes and other general revenues, also dropped from $256.5 million to $248.3 million.
Revenues from business type activities which include the airport, Industrial Park , shipyard and the Territorial Bank of American Samoa dropped from $12.2 million in F2015 to $10.8 million in the last fiscal year.
On the expenditure side, total spending for the year came to $264,074,716, just over half a million less than spending in FY2015.
Total spending for the year outpaced revenues by $2.9 million.
ASG’s capital assets which includes land, buildings and structures, machinery and equipment, infrastructure and construction in progress totaled $369.7 million, an increase of $29.7 million or 5.9% over the prior year.
When ASG closed its books September 30, last year, it had increased debts by 46.8% This includes $142.5 million in net pension liability and $78.9 million in general obligation bonds outstanding,
An indication that ASG’s financial accounting systems and record keeping is still problematic, the auditors did not give an unqualified opinion for the nine sections of ASG which they reviewed.
A qualified opinion, which suggests the information provided was limited in scope and/or the entity being audited has not maintained GAAP accounting principles, was given for governmental activities, General Fund, Grant Fund and Aggregate Discretely Presented Component Units,
A modified opinion, which is when an auditor expresses an opinion that financial statements are presented, in all material respects, in accordance with applicable financial reporting framework, was given for business type activities, Capital Project Funds, Debt Service Fund, Airport Fund and Aggregate Remaining Fund Information.
