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American Samoa: Inadequate Management and Oversight Contribute to Financial Problems

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Report Type Reports and Testimonies
Report Date April 7, 1992
Report No. NSIAD-92-64
Subject
Summary:

The financial condition of the American Samoa government deteriorated rapidly in the latter half of the 1980s. By fiscal year 1991, the government was experiencing severe cash flow problems and was having trouble making payments. The financial situation worsened despite substantial growth in local revenues since 1980. Corporate tax revenues have been hard to predict, and a considerable portion of personal and business income taxes has never been collected. The main reason for this situation is the territorial government's poor financial management practices. Efforts by the Department of the Interior to improve these practices have been unsuccessful. American Samoa has not fully complied with conditions attached to the operating assistance it receives, and Interior's compliance enforcement has been lax. In addition, American Samoa has been slow to respond to recommendations by Interior's Office of the Inspector General.

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