Based on the fiscal year 2010 audit report by the off-island auditing firm of of R.C. Holsinger Associates, Samoa News reported last week that the American Samoa government’s $13 million budget overrun in FY 2010 included the largest overrun of $5.94 million for the Territorial Office of Fiscal Reform (TOFR).
However, TOFR executive director Falema’o Pili says this amount is the money that was held in the insurance proceeds account at the Smith Barney investment firm and transferred out to pay the local share — or matching funds — of the public assistance program to the Federal Emergency Management Agency for past disasters.
Footnote description of financial transaction for ASG under “interfund receivables, payables, and transfers” states that $5.94 was transfered out of TOFR for “local contribution to the Public Assistance program.”
Samoa News should point out this insurance proceeds account is overseen by TOFR and Falema’o says TOFR does not have any overrun for FY 2010.
A senior government official told Samoa News that the Treasury Department is working with off-island auditors on how to address this particular issue for the fact that this amount is not an overrun but a “transfer out” to pay ASG’s public assistance obligation.