The ASG Financial Report for the 1st Quarter of Fiscal Year 2026 which was submitted to the Fono last week, reflected a surplus of $7.8 million. But Acting Treasurer Brett Butler said at a hearing of the Senate Budget and Appropriations Committee yesterday that there’s about $7 million in encumbrances that the government is obligated to pay. He said the figures in the report were preliminary. The reported $7.8 million surplus may be premature.
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The Acting Treasurer said total payables for ASG which includes carryover from the previous administration is between $26 and $27 million. This includes $18.5 million owed to the Retirement Fund. In addition there‘s more than $35 million in unpaid bills from construction companies.
He said a revised financial report to include the encumbrances to reflect a truer picture of government finances would be submitted to the Fono. Butler explained that the report given to the Fono was the same format used in previous years whereby encumbrances are not included.
The hearing, led by the Chairman of the Senate Budget and Appropriations Committee Sen Utu Sila Poasa also covered the unpaid debt to the Retirement Fund.
Senator Utu questioned why the government was paying just 8% for the employer contribution when the statute sets the employer rate at 14%. As he told the House earlier this week, Butler explained that a funding source to cover the increase was not identified and the government cannot afford the 14% at this time.
Utu said an actuary report was presented which showed that without an increase the fund would be bankrupt by 2039.
However Sen Togiola Tulafono said what was presented to the Fono to back up the increase was not an actuarial analysis but the opinion of one man which stated that the Fund would be broke without an increase in contributiona.
He said there was no analysis carried out to support that the Fund would be in trouble if the contributions were not raised. And this was the reason why he voted no on the bill. He knew the government could not afford the increase in the employer contribution.
Togiola did question if ASG was paying into the Retirement Fund the employer contribution for grant funded career service employees who are members of the Fund. He said the employer contribution is covered by federal grants.
Butler said they are researching this information.
The Director of the ARPA Oversight Office, Puialii James Faumuina, submitted a report to the committee which showed that of the total $494.9 million awarded to American Samoa, a balance of $134.3 million remains. Puialii said $188.8 million has been spent since the Pula and Pulu administration took office.
Asked about the possibility of extending the December 31, 2026 deadline to complete all ARPA funded projects, the director said the administration made a request for an extension however because this is a congressional mandate the deadline cannot be changed. Puialii explained that their intention is to have contracts awarded so that all funds are obligated before the deadline. It’s hoped that if the federal government sees that all funds are obligated, projects that are not completed by the deadline would be allowed to continue.
