The net worth of the American Samoa Telecommunications Authority which was once the cash cow of ASG, has gradually dropped
According to ASTCA’s annual audit by CPA firm Aldrich of Oregon at the end of FY2018 ASTCA’s net worth was $13.8 million. But this dropped to $8.5 million at the beginning of FY2019.
By the end of Fiscal Year 2019 the net worth of the government’s telephone company had dropped to $6.083,788.
ASTCA’s long term debt meanwhile climbed from $15.2 million in FY2018 to $49.3 million in FY2019.
For the year, total operating expenses was $20.4 million of which $11.9 million was spent on operations and maintenance, $4.5 million was spent on personnel expenses $3.9 million in depreciation and amortization and $642,466 in write off or uncollectible accounts receivable. The operation loss dropped from $5.2 million in FY2018 to $2.3 million in FY2019.
According to the audit report, the change in net position of ASTCA is largely due to the adjustment made concerning the elimination of the American Samoa Government Employees Retirement Fund leaseback arrangement which was existent in 2018. During the 2019 financial year, the American Samoa Economic Development Authority (ASEDA) refinanced ASTCA’s leaseback arrangement and the capital lease accounting entries were reversed as part of the accounting process.
The financing of ASTCA’s interest in the Hawaiki Submarine Fiber Optic Cable system was substantially changed in FY2019.
“Using funds provide by the American Samoa Economic Development Authority, ASEDA, ASTCA paid off the $15 million balance still owed to Hawaiki and in a separate transaction, regained full ownership and control of the Hawaiki branch spur and 2000 Gbps IRU. This regaining of full ownership and control was accomplished through the extinguishment of a leaseback interest in the spur and ownership and IRU that had been held by the ASGERF . That extinguishment was facilitated by a payment of $18.7 by ASEDA on ASTCA’s behalf,” states the audit report.
Other improvements in net position are due to capital infrastructure works entered into during the 2019 fiscal year which largely includes technical projects, LTE wireless platform and billing system projects.
