ASG Second Quarter Report ‘forecasts’ surplus
Based on current revenue collections and expenditures, ASG Treasurer Magalei Logovi’i is forecasting that the government will get a surplus of just over $3 million by the end of the current fiscal year 2012, which closes Sept. 30, 2012, according to the Treasury Department’s FY 2012 second quarter performance report covering Jan. 1-Mar. 31, 2012.
The Treasury’s report is used widely by lawmakers when debating money issues and other related financial matters for the government. It will certainly be utilized by the Fono when lawmakers return next week for the 4th session, in which the ASG FY 2013 budget comes up center stage for review.
Some lawmakers, who have reviewed the report told Samoa News that this is “only a forecast” up to the second quarter — there are two more quarters left in the fiscal year.
The performance report for the third quarter of FY 2012, which runs from Apr. 1-Jun. 30 will probably be available sometime next month or early September.
According to the Treasury report, as of Mar. 31, 2012 the ASG workforce stands at 4,775 with 3,133 “permanent employees”, 461 contract employees and 1,181 temporary employees.
In his Apr. 27 cover letter to the governor accompanying the report, Magalei points out that the second quarter report shows that ASG is looking at a surplus of $5.18 million for the General Fund alone. With other funds in the Treasurer’s Cash Pool added, ASG is “forecasting a surplus” of only $3.42 million for FY 2012, said Magalei.
“The general fund had to cover for other special revenue funds that were in the red,” the treasurer noted.
Those departments and programs with considerable overruns for their second quarter budgets are: Legislature ($1.45 million); Governor’s Office ($669,328); Port Administration ($215,328); Property Insurance ($415,550); and Other ASG facilities electric/water billings ($173,796).
The Fono’s FY 2012 budget is just over $6 million.
Special revenue funds in the Pool Cash that have overrun their budget for this quarter include Airport Division ($1.10 million); Emergency Medical Service ($337,472); Drivers Training ($93,582); and Public Market ($75,064).
According to the report, revenues are estimated to be $2.58 million more than budget. It says total tax collections are estimated to be more than $4 million above budget, but License & Permits, Fines and Fees, Charges for Services and Miscellaneous revenues are $1.4 million below budget.
As of Mar. 31, ASG has collected about $25.38 million in taxes with $12.10 million in individual taxes; $8.90 million in “Excise Tax: All Others”; $3.23 million in corporate taxes; $942,993 in the soda excise tax; and $196,154 in the military cover over taxes, according to the “preliminary and unaudited” figures provided in the report.
For the entire FY 2012 budget, Treasury Department is forecasting to collect a total of $47.36 million in taxes with $18.86 million in individual taxes; $17 million in “Excise taxes: All Others”; $8.5 million in Corporate taxes; $2 million in the soda tax; and $1 million for the military cover over tax. Taxes are ASG’s top revenue source for the annual budget.
On the expenditures side, the quarter performance report, says ASG spending is forecast to be $2.80 million below budget by the end of the fiscal year because of the considerable savings by certain departments and special programs. For example, at the end of the second quarter, it’s $2.93 million at the Department of Education; $986,076 for Treasury department and $299,844 at Public Works.
Samoa News notes the ASG 1st quarter performance report had a surplus of less than $1 million forecast for FY 2012.
However, certain departments that overran their budgets during the 1st quarter continue to be in the red in the 2nd quarter, in particular the Fono with its 1st quarter over run of $1.25 million and is now at $1.45 million; and the Governor’s Office with a 1st quarter overrun of $133,100 and now at $669, 328. (Samoa News is assuming the overruns are being listed for the quarter only. In total, the two quarters’ overruns are $2.70 million and $802,428, respectively.)
The ASG facilities electricity/ water billings also continue to climb, with a 1st quarter overrun of $265,000 and 2nd quarter overrun of $173,796. Not in the 2nd quarter report is an overrun by the EOB electricity and water billings, which for the 1st quarter was $245,000.
The ASPA 2nd quarter performance report has noted that ASG currently owes $8 million plus for electricity and water billings, which is a sum total in its Accounts Receivables, not a quarterly figure.