Audit report shows ASCC’s assets increased in FY 2020

Pago Pago, AMERICAN SAMOA — The American Samoa Community College’s financial year 2020 recorded current assets increased by $318 thousand or 6.1 percent over the prior year.  

“The increase is due to increases of cash and cash equivalents, tuition receivable, and inventory. Current assets are those assets that mature in less than one year. Net position continues to provide the foundation for ASCC’s financial position.” 

This is outlined in the ASCC Audit report for fiscal year ending 2020 by the Moss Adams Auditors Company based in the U.S. mainland.  

According to the report, the unrestricted net position decreased by $1,043 or 16.5% mainly due to an increase of instructional expenses without a significant increase in revenues and a total negative change in net position (similar to the prior year).  

“However, these assets continue to earn revenue for growth, and the College draws on its income as seed or matching funds for certain qualified programs.  

A $3 million of net assets is not available for future spending, nor used to liquidate any of liabilities. Current liabilities decreased by $109 thousand or 3.3%.  

“The overall decrease is attributed mainly to the decrease in accounts payable and accrued payroll. Current liabilities are those obligations payable within one year.  

The current ratio is at 1.71 in fiscal year end (FYE) 2020 in comparison to 1.56 in FYE 2019.”  

Other aspects of the Audit report under the pension liabilities, pension expense, and deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions – as of September 30, 2020, the College reported a liability of $11,540,405 for its proportionate share of net pension liability.  

“The total pension liability was determined as part of an actuarial valuation as of October 1, 2018, and rolled forward using generally accepted actuarial procedures to the measurement date as of September 30, 2019.  

“The College’s proportion of the net pension liability was based on a projection of the College’s long-term share of contributions to the pension plan relative to projected contributions of all participants, actuarially determined.  

“At September 30, 2019, the College’s proportion was 5.6819%, which was a decrease of .2317% from its proportion measured as of September 30, 2018.  

“At September 30, 2019, the discount rate was 5.25%, which was a decrease of 1.08% from the discount rate as of September 30, 2018. There were no changes in other assumptions and inputs that affected the measurement of the total pension liability since the prior measurement date.”  

Furthermore, the report says there were no changes between the measurement date, September 30, 2019, and the reporting date, September 30, 2020, that are expected to have a significant effect on the proportionate share of the net pension liability.  

The Auditor states that part of obtaining reasonable assurance about whether the College’s financial statements are free from material misstatement, they performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.  

“However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.  

“The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The College’s Response to Findings The College’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The College’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.”  

The purpose of the report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance.  

This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance.