The American Samoa Power Authority is not in good financial shape according to its 3rd quarter performance report.
At the end of June ASPA had collected only 33% of budgeted revenues included in its Fiscal Year 2016 budget.
ASPA’s annual budget lists revenues of $116.4 million for the year.
But at the end of the 3rd quarter actual revenues which is local and grants combined netted just over $58 million.
ASPA says the shortfall is due to some grant funded projects not being billed yet and the continuous drop in fuel prices.
On the expenditure side, ASPA had budgeted expenditures of $116.4 million but at the end of June it had spent just 24% of $66.4 million of that amount.
When revenues and expenses are compared, ASPA’s spending for the year to date went over actual revenues collected by $5,3 million.
ASPA’s biggest spending was in contractual services which has used up $28.1 million or 43.4% of total spending for the year to date.
Contractual services includes salaries of some ASPA personnel , as well as payment of outsourced functions like trash collection.
The 3rd Quarter Performance Report does not give a breakdown of the money that actually goes to personnel which if combined with the amount that’ s identified as personnel costs, $10,091,899 million, would put personnel costs at the top of ASPA’s expenditures.
Materials and supplies have used up $20.3 million or 30.7%, spending in the All Others category came to $5.4 million or 7.9% and Equipment used up $2.3 million or 3% of total spending for the year to date.
ASPA has 466 employees, 387 are full time,36 are on contract and there are 43 temporary employees.
Currently, the biggest project undertaken by ASPA is construction of a new plant at Satala and new offices at Tafuna.
The authority says that the contractor for the Satala plant submitted a formal request to extend the completion date to July 30 and the EPC contractor to August 31.
The delayed construction of the power plant results in increased costs for ASPA due to the continued use of the lower efficient rental generators.
Therefore ASPA is seeking to assess liquidated damages from the contractor to offset the additional costs incurred by ASPA.
The contractor is Louis Berger from the US mainland.
Construction of ASPA’s Operations Center in Tafuna is also facing delays .
Several change orders have been submitted to extend construction management services.
The project is now set for completion October 31.
Paramount Builders is the contractor that’s building the new ASPA offices in Tafuna.