|
|
 |
 |
|
|
|
|
|
|
|
|
|
|
|
Top Stories |
|
|
|
|
ASG anticipates $10 million deficit for FY'08
Thursday,
June 25, 2009
The House Budget and Appropriations Committee will wait for a report on ASG’s revenue collections and expenditures for the first quarter of Fiscal Year 2009 before it makes a decision on four money bills now before the Fono.
This follows a lengthy hearing held this morning at which Treasurer Magalei Logovii and Budget Director Malemo Tausaga testified. The Treasurer was unable to give a projection on whether there will be any leftover monies to fund the four bills which are to be covered by unbudgeted, unobligated and unexpended monies for fiscal year 2009.
$330,000 is requested for the American Samoa Economic Sitmulus and Recovery Office, $200,000 for the Independent Prosecutor, $100,000 for the Internal Auditor Office and $70,000 for the Territorial Audit Office.
Magalei said funds from the General Fund are already paying for the Independent Prosecutor, the American Samoa Economic Stimulus Office and the Internal Auditor Office. The Treasurer said, " I apologize but we have gone ahead and spent the money and are now coming to the Fono to ask for permission. "
Responding to a question from Vice Speaker Laolagi Savali Vaeao about a $1.3 million appropriation for the hospital which was to be come from unbudgeted and unexpended funds for fiscal year 2008, the Treasurer revealed that ASG's preliminary unaudited financial statement for FY08 shows a deficit of $10 million.
He said ASG actually raked in a $4 million surplus from local revenues. However it ended up spending $5 million which was not included in the budget to pay utility bills to ASPA. In addition some government departments finished the year in the red.
The Treasurer said the $5 million paid to ASPA is recorded as part of the deficit because according to the auditors, there was no funding appropriated in the Fiscal Year 08 budget for this expenditure.
Rep. Vaamua Henry Sesepasara questioned why the government chose not to fund the $1.3 million appropriation for the hospital which was passed by law, yet it has covered overruns for government departments.
Rep. Laolagi questioned why ASPA bills were paid when utility payments were not appropriated in the budget. Magalei’s explanation was that ASPA was threatening to disconnect ASG’s power.
Rep. Galu Satele asked the Treasurer if there was any other funding source for the four bills. Magalei said no. Satele commented there’s already expectation that the Fono approve the money bills but it does not appear that there’s any money to cover the appropriations.
Rep. Taotasi Archie Soliai asked how the Treasurer planned to replenish the General Fund monies already spent in the event that there’s no leftover monies at the end of the current fiscal year. He said we have used up monies and we don’t even know if there’ll be any left over funds.
Also testifying at this morning’s hearing were Internal Auditor Gaea Perefoti Failautusi and the Director of the American Samoa Economic Sitmulus and Recovery Office, Pat Galeai.
The Budget and Appropriations Committee will await a revenue collection and expenditure report for the first two quarters of fiscal year 2009 and will discuss the bills again on Monday.
| |
|
|
|
|
|
| Advertise! |
|
|
|
Advertise! |
|
|
|
(c) 2006 - South Seas Broadcasting, Inc. - All rights reserved.
Contact Us
|
|
 Wireless Access
 RSS Feeds
|
|
|
