Pago Pago, AMERICAN SAMOA — American Samoa’s total revenue increased 24% between fiscal years 2017 and 2019, according to the US Government Accountability Office (GAO) in its US Territories Public Debt Outlook — 2021 Update, released June 30th to the US Congress and also made public.

GAO explained that American Samoa’s total revenue was $418.3 million in FY 2017, declined to $411.4 million in FY 2018, and increased to $517.3 million in FY 2019.

“This represents an overall increase of 24 percent between fiscal years 2017 and 2019,” said GAO noting that in FY 2019, $318.3 million in total revenue was generated by the primary government and $199.0 million was generated by component units.

The investigative-arm of the US Congress also reports that American Samoa’s general revenue was $116.6 million in FY 2017 and declined to $105.1 in FY 2019, an overall decrease of 10%.

GAO noted that in FY 2019, “American Samoa had a surplus of $34.0 million. In contrast, it had a deficit of $24.1 million in fiscal year 2017. “

The report further explained that in FY 2019, program revenue comprised 80% of total revenue. Program revenue increased by $110.5 million or 37% between FYs 2017 and 2019, which drove the increase in total revenue.

Furthermore, program revenue increased in FY 2019 mainly due to charges for services from the primary government and component units and operation grants and contributions to the primary government.

EXPENDITURES

GAO said American Samoa’s total expenses were $442.4 million in FY 2017 and increased to $483.3 million in fiscal year 2019, an increase of 9%. Of total expenses in FY 2019, $316.3 million was incurred by the primary government, while $167.0 million was incurred by component units.

According to GAO analysis, American Samoa’s total public debt outstanding grew from $122.2 million in fiscal year 2017 to $235.6 million in fiscal year 2019, representing an increase of 93 percent.

“American Samoa’s public debt has grown and the territory continues to face fiscal risks, such as a reliance on a single industry and significant pension liabilities,” the GAO pointed out, noting that the territory’s economy continues to rely heavily on the tuna processing and canning industry, with currently only one cannery operating — referring to StarKist Samoa. (See Samoa News edition July 1st for details.)

GAO EXPLAINED

GAO explained that the primary government generally comprises governmental activities — generally financed with taxes, intergovernmental revenues, and other non-exchange revenues — and business-type activities (generally financed with charges for goods and services).

Component units are legally separate entities for which a government is financially accountable, such as utilities and public universities.

Revenues are resources generated by the primary government and component units and include both general revenue and program revenue.

“While our analysis primarily focuses on trends in total revenue, or general revenues and program revenues combined, we also report general revenue separately from total revenue in our analysis,” said GAO.

For general revenue, GAO said this includes all tax revenues as well as unrestricted aid and investment earnings. Tax revenues typically represent the largest component of general revenues. Generally, most general revenue is generated by the primary government and a much smaller portion is generated by the component units.

According to the GAO, program revenue is directly linked to functions or programs and includes charges for services, such as electricity fees, and program-specific grants and contributions.

While program revenues are generated by the associated functions or programs, such revenues are not always restricted to use in those functions or programs. Program revenue is generated by both the primary government and component units.

The GAO audit of US Territories Public Debt Outlook is required under a provision of a federal law covering all five territories.