Although the American Samoa TeleCommunications Authority is operating at a loss, the board chairman Roy J.D. Hall told lawmakers that ASTCA is still obligated to make monthly payments for a $10 million loan made several years ago by the government for the LBJ Medical Center.

Hall along with ASTCA acting chief executive officer Alex Sene Jr., testified Wednesday for the agency’s fiscal year 2015 budget totaling $16 million, which is the same amount for FY 2014.

In her questioning, Rep. Vui Florence Saulo sought an update on where ASTCA stands in making payments on any pending government loans, to which Hall responded that, as of last month, the payments are current.

“And it should be understood that we pay about $91,000 to $92,000 a month ‘to serve what we call the LBJ loan’ which started off at $10 million. My estimate, the balance right now is between $6-$7 million,” Hall said, adding that he doesn’t have on hand when the loan matures, and the payments are included in the budget.

The loan payment amounts to “almost $1 million a year. That’s a drain on our revenue,” Hall told the Fono Joint Budget Committee.

The $10 million loan from the ASG Employees Retirement Fund was executed a couple of years ago to help the financially strapped hospital at the time. This loan is one of ASG’s long term debts that the Lolo Administration is looking to be paid off under a proposed floating bond scheme through the American Samoa Economic Development Authority board.

Sen. Magalei Logovi’i said that while ASTCA is still honoring its agreement with the government to make loan payments, the agency’s profit and loss statement shows that at the end of the second quarter — as of Mar. 30 — ASTCA has an estimated $500,000 overrun.

“Are you operating in a loss?” Magalei asked, to which Hall replied, “we are operating at a loss right now.”

“But we have taken action in the last three weeks [to] reduce some of our expenses and to improve our collections on the revenue side and also to bolster our prepaid card sales,” Hall explained. “And we have seen some significant improvements on that because as you know... prepaid sales is a large revenue maker for ASTCA and we’re working on that right now.”

As of Mar. 30th, 2014, ASTCA’s total operating revenue is at  $7.51 million, while total operating expenses stand at $8.03 million, resulting in an overrun of $517,721, according to the profit and loss statement.

However, Rep. Taotasi Archie Soliai requested an updated profit and loss statement covering the 3rd quarter of FY 2014 — which ended June 30, as well as the latest income statement.

He says the reason for the request is because financial data — covering revenues and expenditures — provided by ASTCA in its 3rd quarter performance report has “some discrepancies” when compared to the 2nd quarter profit and loss statement in the ASTCA FY 2015 budget submission.

According to the third quarter performance report data, ASTCA said total expenditures for 2nd quarter were $4.19 million, while total revenues collected for the quarter stood at $3.42 million. Additionally total-expenditures-to-date is $12.23 million and total-revenue-to-date is $10.94 million.

During the budget hearing, Hall said ASTCA will provide the most updated financial report but asked that the document be held as confidential within the committee. Hall made similar statements when the committee requested ASTCA’s FY 2013 audit report.

Hall said the audit report contains “some highly sensitive information” that needed to remain confidential, and they will provide the report “for review and analysis” but it cannot be shared publicly.

Sen. Laolagi F.S. Vaeao, co-chair of the Fono Joint Budget Committee, responded that the Fono will also consult with its legal team upon receipt of the report, but he didn’t elaborate further. He thanked Hall in advance for the audit report, which will provide for the Fono the financial status of ASTCA in the last fiscal year.