Pago Pago, AMERICAN SAMOA — Despite the economic down turn as a result of the COVID-19 pandemic and the supply chain shortages arising from the Russia war on Ukraine, the American Samoa Government is optimistic after the local economy continued to gain strength through federal aid funded through the CARES Act and other federal stimulation projects. 

 “As a result our 2nd quarter performance report — Year to Date expenditure is $54,88o,574 or 45 percent of the fiscal year 2022 annual budget of $122,812,500.

“Spending activity has been $6.5 million or 5 percent slower than anticipated during this time.”

This is according to the preliminary second quarter performance report of FY 2022 ending 31 March, 2022, which was endorsed by Acting Director of the Office of the Program Planning and Budget, Aukuso Satia, and submitted to Governor Lemanu Peleti Mauga on May 12, 2022.

“The global economic environment continues to be challenging with the ongoing impact due to the COVID-19 pandemic, together with the conflict of the war between Russia and Ukraine, which has created lingering economic uncertainties and threat on global security.

“Consequently, inflation has increased due to constraints in supply chains.

 “The [Federal Govt] has tried to increase interest rates to tame inflation and risks triggering an economic slow-down worldwide recession. Our local economy imports most of what we consume locally and it’s not immune to the price increases. The prices of fuel, food and everything else have gone up and the dollar continues to erode,” the report points out.

The report also says the three main branches of Government have successfully operated within their 2nd quarter approved budget.

“The special program [category] is slightly above the 50 percent threshold but projected to finish the year within budget.

“With certainty, there is sufficient revenues collection to meet our ongoing operations expenses.”

The report says for the Executive Branch, with an annual budget of $80.24 million — the balance remains as of the quarter under review at $45.4 million.

The Judiciary’s budget of $3.27 million has the balance is $2.3 million; Legislature’s budget of $8.11 million has a balance of  $5 million; and, the $31 million allocated for special program(s) has the balance of $15 million.

“Of the $54.9 million of YTD expenditures incurred in the 2nd quarter 61 percent is for personnel, 21 percent contractual, 13 percent under others and 3 percent materials and supplies and the rest in equipment and travels.

For the Department of Treasury, the report submitted by Acting Treasurer at that time, Levi Reese noted they are doing well with individual tax collections, evidently reflected in the favorable revenue budget variance of $8.4 million if the trend of actual individual revenues kept increasing.

“All other tax sources are short of FY 2022 projected budget numbers but overall comparison of FY2022 budgeted taxes revenues and annualized taxes revenues, which is an estimate of fiscal year’s revenue based on the current trend of actual taxes revenue collected as of FY2022 second quarter — yielded a favorable variance of $5,451,424 at fiscal year end.

“The contributing factor to individual taxes revenues has been due to increases in federal grant funding, financing ASG’s personnel hires. Treasury commits to do better with collections for the rest of the fiscal year.”

Regarding the 2021 Year End Closing/ Government-Wide Audit the report, it says the 2021 ASG single audit and the financial audit were performed during the 2022 second quarter.

“Due to border closures the audit was virtual, similar to the previous year. In February, COVID-19 entered the territory but Treasury Finance was still able to work with the auditors, sometimes remotely from home to complete the audit on time.”

The report also noted the vaccination incentive was extended to mid February however due to COVID outbreak the disbursement of the $100 incentives was discontinued.

In the first quarter Reese, reported on the status of the Office of the Inspector General Audit that is auditing the $35 million Coronavirus Relief Fund received under the previous Administration and the report was not released under the reviewed period.

Regarding the Advance Child tax Credit, the report says at 2021 fiscal year end, ASG received $33 million from the US Treasury whereas qualified taxpayers were given the option to receive their advanced child tax credit in first quarter of 2022 or wait until they filed their 2021 tax return.

“Many opted to receive their advance. ASG Treasury made two payments of the advance Child tax Credit, first payment was in October, totaling $12.7 million and second payment in December of over $13 million.

“The remaining Advance Child Tax Credit has been distributed to those who filed and received their 2021 tax refunds and opted to receive during the 2021 tax season.”

The report states that at the end of the 2nd quarter the Treasury Department spent 45 percent of the $2.9 million of its total budget of $6.4 million.