This Friday is the cut-off date for invoices paid with local funds under FY2019

Pago Pago, AMERICAN SAMOA — At last Friday’s cabinet meeting, Gov. Lolo Matalasi Moliga reminded directors and Executive Branch agency heads that Aug. 30th is the cut-off date for submission of invoices for processing under fiscal year 2019 for expenses paid with local funds.

Lolo said purchase orders and other requests submitted after Aug. 30th will not be processed until fiscal year 2020, which begins Oct. 1, 2019.

A memo has gone out to directors outlining the process of closing out FY2019.

The Aug. 12th memo titled, “FY 2019 Year End Closing for Local Fund Accounts”, from ASG Office of Program Planning and Budget director Catherine D. Saelua, informs executive branch cabinet members on the need to “reconcile and close out any outstanding encumbrances in their respective accounts” for FY 2019.

“In an effort to ensure a smooth transition towards the new fiscal year and achieve a successful year end closing,” Saelua advised directors to follow up pending transactions and open encumbrances so they can be resolved.

“In fact, this will further enhance our commitment in ASG’s efforts towards attaining a timely clean audit, as well as a balanced budget by year end,” she said, adding that all executive branch agencies’ purchase orders and invoices be processed no later than Aug. 30th.

In addition to meeting this cut-off date, all departments and offices are required to take certain specific actions.

Among them is that all outstanding commitments and encumbrances must be cleared and reconciled before year-end to prevent any transactions from rolling into FY 2020, thus decreasing the department/ agency’s budgeted allocation authorized for specific programs and funding.

Additionally, all purchases must be routed through the Budget Office, Treasury Department, and Procurement prior to the designated cut-off date. Any purchase requisitions prepared and processed after Aug. 30th will be returned for encumbrance in the FY 2020 budget.

However, she explained, utilities and payroll are excluded from this deadline.

Directors were also informed that invoices and receiving reports must be received and on file with Treasury’s Accounts Payable Division before Aug. 30th to ensure payments are posted to FY 2019.

FY 2020 FINAL BUDGET

Meanwhile, the governor informed cabinet members that the final FY 2020 budget has been transmitted to the Fono. (See separate story for details)

Lolo reminded cabinet members of the Fono’s longstanding policy that only directors, head of agencies, as well as CEOs and presidents of ASG authorities are accepted to testify during budget hearings, not deputies or anyone else.

He urged cabinet members to attend their budgets hearings, during which cabinet members should inform the Fono about the specific problems within their agencies, including the lack of funds to carry out their services.

By sharing with lawmakers, problems with funding, the governor said the Fono should then look for more money to fund that agency’s budget.

Samoa News points out that over the years, lawmakers would tell directors who bring up this issue that they should raise the matter directly with the governor, who is responsible for the submission of the final budget document.