The American Samoa Shipyard Services Authority is proposing more than $2 million in revenues and expenditures at $1.89 million for the new fiscal year 2013, which begins on Oct. 1, 2012.

The authority oversees, manages and operates the government owned Ronald Reagan Marine Railway. According to the budget book, total expenditures for the shipyard comes to $1.89 million while revenues are forecast at $2.17 million, which is the same information shipyard authority board vice chairman David Robinson provided to Samoa News last month.

In FY 2012, expenditures were projected at $1.42 million with revenue at $1.53 million, resulting in forecasted surplus of over $100,000.

Robinson told the Fono budget hearings last year the shipyard was expecting a surplus in FY 2012 and any surplus will be reinvested back into the shipyard. Last month he told Samoa News the shipyard is on target to end the fiscal year with a surplus of $115,000.

REVENUE SOURCE

Funding source for the FY 2013 budget comes from shipyard work and for the new fiscal year the budget is proposing to repair five large boats at a cost of $200,000 each boat, according to the budget document.

Additionally, 24 small boat repairs at $35,000 each and one government boat repair at $100,000. Also proposed for revenue is miscellaneous repair work and “other services” totaling $195,000.

EXPENDITURES

For expenditures, the highest one is personal costs at $925,50 — with 45 workers —  followed by materials & supplies with $592,500, contractual services at $221,000 and the rest goes to other expenses such as travel, equipment and “all others”.

Proposed in the budget are 14 new positions, which included 10 welders, needed by the shipyard for the expected hike in work. FY 2012 workforce stands at 31, according to budget documents.

One large single expense for the shipyard is $500,000 for steel plate, pipes, etc., according to the budget book, which also includes the income and expenditure statement for FY 2011 — from May of last year when ASG retook shipyard ownership to Sept. 30, 2011. It shows a surplus of $60,000.

When the government retook the shipyard, they had to purchase all new equipment and major repairs were done to the shipyard, without any funding allocation from ASG. The shipyard did get stimulus money of just over $1 million last year to help with its purchases and repairs.

OTHER MATTERS

In his letter that accompanied the FY 2013 budget, Gov. Togiola Tulafono said shipyard operations remains “viable” as it secures an order backlog and currently offers sustainable employment for local residents.

Carlos Sanchez, the board chairman and acting general manager, told Samoa News last month that it’s important to note that since June of 2011, “we have sufficient funds for operations, the shipyard does not require any subsidies from the general government, the workers have full work schedules and many times earn overtime pay due to demand.”Both Sanchez and Robinson also stated the shipyard is hiring additional workers in the new fiscal year to address the increased work at the shipyard, as more vessels come here to dry dock.