Pago Pago, AMERICAN SAMOA — The FY2022 2nd Quarter Continuing Disclosure Report released by the American Samoa Economic Development Authority (ASEDA), as part of its requirement to bondholders of the 2015, 2018, and 2021 series, shows shortfalls in the revenue collection sources for the 2nd Quarter of Fiscal Year 2022, while reporting an estimated overall surplus for FY2022. 

The Authority qualifies its findings stating that it used budgetary and unaudited numbers to show the estimated budgetary overruns or under-runs. “The actual results may vary,” the report states.

The report is for the 2nd Quarter of Fiscal Year 2022 — January 1, 2022 — March 31, 2022, due 45 Days after the end of the quarter (March 31, 2021) or May 14, 2022.

Contents of the Quarterly Report “shall contain an unaudited report of budgeted versus actual results for such fiscal quarter, in a format similar to a statement of revenues and expenditures,” according to the Disclosure Report.

 Other reports required by bondholders include “audited” financials for ASG, TBAS and ASEDA — which become part of an Annual Continuing Disclosure Report that ASEDA updates and submits 210 Days after the end of the Fiscal Year. Updates also include a table of revenue sources used by ASG to pay for the bonds, and what percentage of a specific revenue source was used.

CONTINUING DISCLOSURE REPORT

In the disclosure report, ASEDA reports for the 2nd quarter that there were “no significant events” to affect payment of the bonds. This includes issues such as adverse tax opinions; bankruptcy, insolvency, receivership; ratings; appointment of a successor or additional trustee or the change of the name of a trustee, modifications to the rights of the owners of the series 2015, 2018, or 2021 bonds; release, substitution or sale of property securing repayment of the bonds, etc.

For ASG’s financial position, a Statement of Revenues, Expenditures and Change in Fund Balance General Fund and Funds in Treasurer’s Cash Pool — Preliminary and Unaudited is attached to the disclosure report. A breakdown itemizing expenditures and revenue collections per department is part of the statement.

There is an overall FY-2022 Unbudgeted Estimated Surplus reported of $8.5 million. However, shortfalls or over-spending of its budget for the quarter are reported in Driver’s Training, Sports Complex, the Airport, Housing Fund and Print Shop. The Airport had the largest shortfall — close to a million dollars.

Shortfalls in revenue collections, itemized in its General Fund Revenue Report for 10/01/2021 thru 03/31/2022, show an overall shortfall of $781,185.

The largest source of the shortfall comes from Corporate Taxes showing $755,636, with Excise Taxes following with a shortfall of over $600,000.

Licenses, permits, fees and fines are all reported at estimated shortfalls, including charges for ASG services.

Individual Taxes and Other in Miscellaneous Income are the only categories ASEDA reports as collecting revenues over the budgeted amounts — by $4.2 million and $342,000, respectively.

Continuing its estimate of ASG’s financial position, a breakdown of department expenses per department budget estimates the following as going over their budget — the Governor’s Office, the Medicaid Office and the Department of Public Safety, which has the largest estimated over-run of $222,027.

The government’s subsidies are listed under Special Programs and have an annual budgeted amount of $18.5 million, with the Am. Samoa Fishery Task Force having the only estimated over-run of its subsidy, which has no amount listed and is therefore is estimated as having a shortfall of $3,708.

Some items of interest under the Special Programs:

— A total of $100,000 is budgeted for the former Governors and their surviving spouses with only $29,750 currently used.

— $400,000 for LBJ staff development has only $48,258 utilized.

— $500,000 is allocated for Manu’a and Swains Island transportation with $176,078 used.

— $1 Million for Airport General Fund Subsidy has used around $50,000 and has $950,000 plus balance.

— $2 Million for LBJ Subsidy has been given $1 Million, leaving a balance of $1 Mil.

— BHE Am. Samoa Comm. College Subsidy is $1 Million, of which a balance of $ 500,000 remains.

Some other items of interest are listed under the Supplemental Budget- Public Law 37-6, which according to the report’s Notes are “accounts created under the Supplemental Budget Public Law 37-6, [and] annualized expenditures are based on their funding source, which is FY2020 cumulative surplus.” The supplemental total budget is listed as over $12Mil, with a remaining balance on the books of over $7Mil.

— LBJ is listed as being budgeted $1Mil, and it remains on the books.

— Medicaid- Local Matching is budgeted $2Mil and it remains on the books. (There is also another $2Mil budgeted under Special Programs, which has a balance of $1,203,410.)

— ASCC is budgeted $1Mil, and has $250,000 in balance.

— Legislative Branch was budgeted $1Mil and has a balance of $387, 888.

— Pay Adjustments at the Governor’s Office is listed at $500,000 with a balance of around $480,000.

— DoH personnel costs has $500,00 and has not been used.

— Territorial Audit personnel Costs Increase has $150,000 with a balance of around $117,000.

— Depart. of Treasury -C/Drug Detecting has $300,000 budgeted and it has not been used.