As the American Samoa Community College prepares to begin a new academic year, it’s in a precarious financial situation because ASG lags behind in paying the college’s subsidy.
Last week an email from ASCCs Chief Financial Officer Emey Silafau asked all division heads to stop all purchasing unless they’re spending on things that their divisions cannot function without.
The email obtained by KHJ News said that as of August 24th the date of the email, ASG owes ASCC a total of $942,592 .
ASG owes the college $32,518 for April, and for the months of May, June, July and August, ASG has not paid the monthly subsidy of $232,518 ,
ASCC’s CFO said with just one month and a few days left in the current fiscal year, the college’s cash flow situation is still very critical.
She pleaded with ASCC division heads, “Due to our cash flow status, please, we urgently and humbly ask that we stop all purchasing unless it is something that our divisions cannot function without.”
The subsidy for the college, like the subsidy for the LBJ Hospital, was approved in ASG’s Fiscal Year 2016 budget.
Budget Director Cathy Saelua meanwhile states in the first page of the 3rd quarter performance report that the government has underspent its budget.
She wrote she’s pleased that the year to date spending level for all of ASG, totaling $69.1 million as of the end of the last quarter, is in compliance with the Anti-Deficiency Act and on track to achieve a balanced budget by year end.
The administration must maintain a balanced budget in order to maintain the current rating of the American Samoa Economic Development Authority bonds which have raised $78 million to finance among other things, a government bank, build a brand new vessel for Manu’a, relocate fuel tanks from the airport parking lot, build roads and possibly a new Fono building.
