ASG entities directed to submit their FY2024 budget requests by May 22

Pago Pago, AMERICAN SAMOA — The American Samoa Government’s new Fiscal Year 2024 budget threshold for local revenue is set at 5% above the current fiscal year and deadline for submission of proposed budgets for ASG entities is no later than May 22, according to Office of Program Planning and Budget director Catherine D. Saelua’s budget call letter.

And cabinet members were informed not to include in their budget proposals, their COVID-19 related grant awards — which is temporary funding and instead submit that separately.

ASG’s budget for the current fiscal year 2023, which ends Sept. 30 this year, is more than $700 million and it includes $7.4 million from the Supplemental FY 2023 budget approved early this year.

Lawmakers convene in July this year for the Second Regular Session of the 38th Legislature and the annual budget is a priority agenda item, as the new fiscal year starts on Oct. 01.

BUDGET CALL LETTER

In her budget call letter to cabinet members, dated May 01, Saelua pointed out that ASG has reached another pivotal moment as “we continue to endure the current challenges while we lay the ground work of set priorities for a better tomorrow.” 

She noted that Gov. Lemanu P. S. Mauga has shared his concerns regarding the high cost of living and the on-going struggle for those who are at the bottom of the economic ladder, thereby making it difficult to meet their basic needs.

Furthermore, consideration will be given to the underfunded areas due to 2023 budget cuts in education, Medicaid, and special projects.

“As a result, the importance of the availability of funding will be assessed to address these critical needs of our government operation,” she said but didn’t provide additional details on the 2023 budget cuts — but it is expected she will be questioned by lawmakers.

LOCAL REVENUES

Saelua said that the proposed budget for FY2024 is based on preliminary projection of local revenues. She explained that the current budget that funds ASG consists of 51% in federal grants and 49% in local funds.

“As federal funds are awarded based on its required mandates; consequently, we have to rely on the limited coffer of local revenues to fund the remaining priorities for our people,” she said.

“Therefore, with confidence our total FY2024 Budget ceiling is set at approximately $125 million, or 5% above your current FY2023 approved budget,” she explained.

Cabinet members were told that upon receipt of their budget proposals, “we will provide a schedule so you can present your proposed plan to justify your operational needs.”

As in previous fiscal years, cabinet members were informed to integrate in their annual budgets, certain budget-items as part of the annual budget submission.

FRINGE BENEFITS & FIXED COSTS

Saelua explained that the cost for fringe benefits on FICA and Workmen's Compensation are 7.65% and 1.05%, respectively, for both career and contract employees, with 10% of government contribution to the ASG Employees Retirement Fund, for a total fringe benefit rate of 18.70% for career service and 8.70% for contract employees.

Furthermore, all fixed costs — utilities, communication, rents, and leases — should be identified and incorporated into the budget plans.

FEDERAL GRANTS

For federal grants, the proposed budget must be consistent with the most recent approved Federal Grant Awards and not exceed authorized amounts in current awards, including all other grants not listed.

Cabinet members were told to attach a copy of the current grant award in their budget submission.

“More importantly, because of the inflated budgetary numbers and the temporary nature of these grants, we ask that your Covid-19 related grant awards not be included in your FY2024 proposed submission,” Saelua said.

“Rather, we ask that you submit it separately and have it in your possession should related questions arise from the Legislature,” she noted.

(Samoa News notes that this was the same process as in the two-previous fiscal years during COVID time, during which the federal government provided millions of dollars.)

ENTERPRISE FUNDS

Enterprise Funds are self-sustaining entities funded through generated revenues to support its operation and services. The profit and loss statement from each enterprise fund account is mandatory to be submitted for the most recent three years.

“It is critical that the proposed operating expenses are subsequently offset by sufficient revenue collections,” she said.

For ASG’s semi-autonomous authorities, which are listed in the annual budget document under “Enterprise Fund” — they are to prepare their proposed budget plan for direct submission to the Legislature with a copy to the Budget Office to be included in the main Budget document proposal.

Samoa News notes that submitting their budget plans directly to the Fono has been the same protocol for semi-autonomous agencies in the last few fiscal years.