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ASPA Financial Report for FY2013: Total Assets increased by $8.4 Million

American Samoa Power Authority total assets increased by $8.4million with the most significant increase reflected in current assets of $1.4million and a utility plant of $6.9million, according to ASPA’s Audit Report for the Fiscal Year ending September 30, 2013. The audit report was issued in May 2014, and conducted by Independent Auditors Deloitte & Toiuche LLP based in Tamuning, Guam.

 

The report says that in FY 2013 Satala Power Plant generators were manufactured and factory inspected, while other ongoing projects were Feeder permanent repairs, the Satala tie line, water projects and the continuing of the East side line project.

 

“For the year ended September 30, 2013 ASPA’s overall change in net assets was a surplus of $26million. Of this total, the Fuel Division operating income was about $2.3million mostly of FEMA, EPA and DOI funded projects and $17million from insurance recoveries. The fuel’s marketing inventory asset value at the end of FY2013 was approximately $11.7million.

 

The report goes on to say that total local operating revenues excluding fuel sales, decreased by $1.1million over the previous year. ASPA raised its incremental rates for Water, Waste water and Solid Waste in October 2012.

 

However any additional revenue realized from increased rates were offset by the fuel discounts received from fuel surcharge into its monthly billings to recover the variable costs of fuel pool and therefore the cost of fuel has a direct impact on operating revenues and in FY2013 fuel price peaked at an average of $3.67 per gallon.

 

According to the audit report, FY2013 was when ASG began paying old outstanding utility bills and ASPA reevaluated collectibility of the ASG receivable. A $5.5million bad debt recovery was recorded as a result of the re-evaluation.

 

ASPA’s local operating and maintenance expenses in FY2013 increased by $5.4million over FY2012 of which $1.8million is due to the increase in operating costs of Solid Waste Division; $1.1million is attributed to increase in water operating expenses and $2.8million increase in power production and transmission and distribution excesses.

 

During 2013, fuel expenses for the electricity division decreased by $1.6million. The ground mounted solar panel had a positive impact on fuel usage during the year. Net (loss) before capital contributions and extraordinary item was ($1,584,617) in FY13 compared to ($4,117,717) in FY12. The fuel division surplus of $2.3million and ASG receivable recovery contributed to the reduction of net loss for FY13.

 

Federal capital grants of $10.4million were recorded as a result of FEMA grants for the Satala Power Plant Generators of $5.3million while $5.1million was derived from DOI and EPA funded projects. ASPA also recorded extraordinary income of $17million in FY13 due to settlement of an insurance claim for damages related to the 2009 earthquake and tsunami.

 

In FY13, ASPA recorded $2.5million of local revenues from ASG 10% share of FEMA tsunami-funded projects mainly the Satala Power Plant project, however the revenue was fully allowed for.

 

The settlement was received in FY12 however uncertainty regarding whether the FEMA may require application of the proceeds against FEMA grants from prior years was not resolved until FY13.