Treasury Reports that Collections Down in 2nd Quarter

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When the American Samoa Economic Development Authority first floated the idea of selling bonds to raise a sizeable amount of money to finance major projects which could not be carried out with the annual allocations from the federal government, it was stressed that a balanced budget and an unqualified audit opinion were necessary to maintain the bond ratings and interest payments at the time the bonds were sold.

The F Y2016 audit report for ASG  released recently was qualified.  And there was a deficit of more than $3 million.

The audit does not give any information about how much ASG owed to vendors and in unpaid bills to ASTCA and ASPA.

Treasury’s third quarter performance report states that as a result of the bond issuance, austerity measures were implemented to address any adjusted budget allocations and spending to align with revenue collections.

“The outcome has been reduced budget ceilings being instituted to ensure these concerns are addressed and that we are not operating with a deficit.”

The Treasury report, which has the signature of Deputy Treasurer Keith Gebauer, says second quarter revenues were not successfully collected as forecasted due to various delayed taxable items which have a direct effect on revenue cash flow.

A reduction in hours was instituted in April 2017 to alleviate these obligations again align the expenses to revenues and cash collected.

The report goes on that in May and June cash collections ranged from $3.9 million and $7 million from the Tax office and Customs division.

This enabled restoration of hours for low wage earners only with the remaining workforce still on reduction of hours for the remained of the fiscal year.

And according to Treasury payable obligations owed to vendors have been significantly reduced.

Currently before the Fono are five revenue generating measures that the Lolo Lemanu Administration is proposing to shore up collection., Meanwhile FY2017 draws to a close September 30 and ASG employees still on a reduced work schedule are waiting for news as to when their full pay will be restored.

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