If the government doesn't curb financial spending from its current trend, Lolo said ASG may end the current fiscal year 2017 with a $16 million deficit, while the financial climate remains unchanged at this time under President Donald J. Trump’s administration.

Speaking at last week’s cabinet meeting, Lolo, who recently returned from several meetings in Washington D.C., said that the financial climate for the local government as well as throughout the world is no longer the same as before and there is a need to prepare for possibly difficult times ahead for American Samoa.

For the governor and those cabinet directors who were in the nation’s capital in February, Lolo said they all bear witness to the many changes at the federal level. However, the governor is thankful to the sons and daughters of American Samoa, working at the Interior Department, such as Interior Acting Assistant Secretary for Insular Affairs, Nikolao Pula, who have assisted greatly in communications between ASG and the federal government.

While the Interior Department now has a new Secretary, Lolo says there are other DOI senior posts still vacant and he is hopeful that once such posts are filled there will be early communication from DOI regarding the US territories.

Lolo reminded his cabinet that about 65% to 70% of the total budget comes from federal grants and ASG doesn’t have a good record at the federal level when it comes to complying with guidelines to ensure that funding is monitored closely.

And that is why, said the governor, that he and Lt. Gov. Lemanu Palepoi Sialega Mauga have made changes to the Office of Grants Oversight and Accountability, headed by Jerome Ierome, and overseen by the Governor’s Office.

Lolo noted that among some of the executive entities faced with compliance issues on federal grants, is the Territorial Administration on Aging (TAOA), which still hasn’t received its federal grant money.

(At his confirmation hearing in Febuary, ASG Treasurer Uelinitone Tonumaipea revealed that TAOA funding has been placed on restrictions by the federal grantor, over the issue of required reports. Therefore he said vendors of the hot meals are facing a delay in getting paid, as local funds are subsidizing TAOA funding.)

Lolo said the problem faced with TAOA and other executive branch entities is that they aren’t filing required reports in a timely manner as directed by the federal grantor. Lolo said Ierome’s team would also be available to assist semi autonomous agencies.

Upon returning on island, Lolo said he discovered about 10 travel authorizations (TAs) not approved by Lemanu and the governor thanked the lieutenant governor for not approving the TAs.

Lolo says off island travel at this time is not recommended based on the current financial   situation because not only are there many issues dealing with the local government to address, but there are also a number of local issues that should be carefully monitored.

For example, he said that in a meeting with Treasury and Budget Office, he was informed that if ASG continues to spend at the current trend, ASG would close FY 2017 with a $16 million deficit. He urged directors to restrain their spending. He said the administration has been able to make it through in the last three years by keeping down spending, and there is no reason the same thing couldn’t be done in 2017.

According to the governor, many cabinet members are not keeping a close watch on department spending and this has been a clear indication of not monitoring finances with the way overtime requests continue to come through the Governor’s Office for approval.

Lolo made it clear, at least three times, that no overtime will be approved and that directors should find ways to achieve each department’s operations without paying overtime.

He pointed to many requests for overtime approval as the reason that required reports need to be completed, and said these reports should have been done in advance, instead of waiting until the deadline approaches for submission of required federal reports.

Lolo said the reason for incurring overtime is that the director is not doing the job of being a leader.

“Find ways to have the job done without the need for overtime,” the governor told directors in a stern voice.

During one of the cabinet meetings in December, directors were told to conduct a head count of their respective departments and agencies and submit to Human Resources the actual number of people working.

But at last week’s cabinet meeting, the governor said that some directors have yet to submit the total number of employees in their respective departments and offices, although it’s been four to five weeks since the a new directive went out to conduct a head-count of all employees to ensure that directors know the actual number of workers on the payroll.

Lolo reiterated that the director’s job is to oversee their respective agencies and make sure that the work is done, and not have it assigned to a deputy director or other senior personnel.

In closing, Lolo told directors that “no one will travel off island due to the current financial situation” as well as for the fact that the government is heading into a busy time of the year, starting this month with Flag Day, next month with the annual senior citizens week, followed by graduations.

Unless it is really necessary for a director to travel off island, Lolo suggested that directors send their employees for meetings and trainings.