Title 5
PUBLIC
PLANNING, BUDGET,
AND DEVELOPMENT
BUDGET MANUAL-PROGRAM
PLANNING AND BUDGET
DEVELOPMENT
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Preface . |
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VI. Guidelines, Criteria and Instructions For Evaluation of General Fund Nontax Revenues |
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Reviews . |
5.0101 Budget cycle-Designated.
The American Samoa Government budget cycle is as set forth in the following illustration:
Only the most frequently
used terms in the American Samoa Government budgetary process are included in
this section of the Manual. Their definitions are either copied verbatim or
adapted from the third edition of A Glossary of Terms Used in The Federal
Budget Process, March 1981, prepared by the United States General
Accounting Office, Washington, D.C. The Manual users are encouraged to consult
the above publication for applicable budget terminology excluded from the
listing in 5.0 103.
History: Rule 3-83, eff 4 Apr 83, § C.l.
(1) "Activity" means a specific and distinguishable line of work
performed by one or more organizational components of a governmental unit for
the purpose of discharging a function or subfunction for which the governmental
unit is responsible. For example, food inspection is an activity performed in
the discharge of the health function.
(2) "Advances" means amounts of money prepared pursuant to budget
authority or emergency conditions in contemplation of the later receipt of goods,
services, or other assets. Advances are ordinarily made only to payees to whom
an agency has an obligation, and not in excess of the amount of the obligation.
A common example is travel advances which are amounts made available to
employees prior to the beginning of a trip for costs incurred in accordance
with the ASG travel policy.
(3) Agency. There is no single definition of the term "agency." Any
given definition usually relates to specific legislation. Generally,
"execution agency" means any executive branch department, independent
commission, board, bureau, office or other establishment of the American Samoa
Government, including independent regulatory commissions and boards. Agency, in
the broader sense, encompasses executive agencies and establishments in the
judicial and legislative branches.
(4) "Agency missions" means responsibilities assigned to a specific
agency for meeting territorial needs. Agency missions are expressed in terms of
the purpose to be served by the programs authorized to carry out functions or
subfunctions which, by law, are the responsibility of that agency and its
component organizations. In contrast to territorial needs, generally described
in the context of major functions, agency missions are generally described in the
context of subfunctions.
(5) "Allotment" means an authorization by the head (or other
authorized employee) of an agency to his/her subordinates to incur obligations
within a specified amount.
(6) "Anti-deficiency act" means legislation enacted by the Legislature
to prevent the incurring of obligations or the making of expenditures (outlays)
in excess of amounts available in appropriations or funds; to fix
responsibility within an agency for the creation of any obligation or the
making of any expenditure in excess of an apportionment or reapportionment; and
to assist in bringing about the most effective and economical use of
appropriations and funds.
(7) "Apportionment" means a distribution made by the office of
program planning and budget development of amounts available for obligation,
including budgetary reserves established pursuant to law, in an appropriation
or fund account. Apportionments divide amounts available for obligation by
specific time periods (usually quarters), activities, projects, objects, or a
combination thereof. The amounts to be apportioned limit the amount of
obligations that may be incurred. In apportioning any account, some funds may
be reserved to provide for contingencies or to effect savings, pursuant to the
anti-deficiency act. The apportionment process is intended to prevent
obligation of amounts available within an appropriations or fund account in a
manner that would require deficiency or supplemental appropriations and to
achieve the most effective and economical use of amounts made available for
obligation.
(8) "Appropriation act" means a statute, under the jurisdiction of
the House and Senate Committees on Appropriations, that generally provides
authorization for agencies to incur obligations and to make payments out of the
treasury for specified purposes. An appropriation act, the most common means of
providing budget authority, generally follows enactment of authorizing
legislation unless the authorizing legislation itself provides the budget
authority. From time to time, supplemental appropriation acts are enacted to
serve territorial needs.
(9) "Public enterprise fund" means expenditure accounts authorized by
the Legislature or by Executive Authority to be credited with collections,
primarily from the public, that are generated by, and earmarked to finance, a
continuing cycle of business-type operations.
(10) "Intra-governmental revolving fund" is authorized by law or
Executive Authority to carry out a cycle of intra-governmental business-type
operations. They are similar to public enterprise revolving fund accounts
except they are credited with offsetting collections primarily from other
agencies and accounts. Some examples are working capital fund, stock fund,
industrial fund, and supply fund.
(11) "Appropriation limitation" means a statutory restriction in
appropriation acts that establishes the maximum or minimum amount that may be
obligated or expended for specified purposes.
(12) "Balanced budget" means a budget in which receipts are equal to
or greater than outlays (see also Budget Deficits and Budget Surplus).
(13) Balances of Budget Authority. Balances of budget
authority result from the fact that not all budget authority enacted in a
fiscal year is obligated and paid out in that same year . Balances are classified
as follows:
(A) Obligated Balance. The amount of obligations
already incurred for which payment has not yet been made. This balance can be
carried forward indefinitely (unless restricted by policy) until the
obligations are paid.
(B) Unobligated Balance. The portion of budget
authority that has not yet been obligated. In l-year accounts the unobligated
balance expires (ceases to be available for obligation) at the end of the
fiscal year. In multiple-year accounts the unobligated balance may be carried
forward and remain available for obligation for the period specified. In
no-year accounts the unobligated balance is carried forward indefinitely until
(I) specifically rescinded by law, or (II) until the purposes for which it was
provided have been accomplished, or (III), in any event, whenever disbursements
have not been made against the appropriation for 2 full consecutive years.
(14) "Budget activity" means categories within most accounts that
identify the purpose, projects, or types of activities financed.
(15) "Budget amendment" means a revision to some aspect of a previous
budget request, submitted to the Legislature by the Governor before the
Legislature completes appropriation action.
(16) "Budget authority" means authority provided by law to enter into
obligations that will result in immediate or future outlays involving
Government funds, except that budget authority does not include authority to
insure or guarantee the repayment of indebtedness incurred by another person or
government. The basic forms of budget authority are appropriations, authority
to borrow, and contract authority. Budget authority may be classified by the
period of availability (l-year, multiple-year, no-year, by the timing of
legislative actions (current or permanent), or by the manner of determining the
amount available (definite or indefinite).
(A) Forms of budget authority are as follows:
(I) Appropriations. An authorization by an act of the Legislature that permits agencies to incur obligations and to make payment out of the treasury for specified purposes. An appropriation usually follows enactment of authorizing legislation. An appropriation act is the most common means of providing budget authority. Appropriations do not represent cash actually set aside in the treasury for purposes specified in the appropriation act; they represent limitations of amounts that agencies may obligate during the period of time specified in the respective appropriation acts.
(II) Authority to Borrow. Also called borrowing authority or authority to spend debt receipts. Statutory authority that permits an agency to incur obligations and to make payments for specified purposes out of borrowed moneys.
(III) Contract Authority. Statutory authority that permits obligations to be incurred in advance of appropriations or in anticipation of receipts to be credited to a revolving fund or other account. By definition, contract authority is unfunded and must subsequently be funded by an appropriation to liquidate obligations incurred under the contract authority, or by the collection and use of receipts.
(B) Periods of availability are as follows:
(I) One-year (Annual) Authority. Budget authority that is available for obligation only during a specified fiscal year and expires at the end of that time.
(II) Multiple-year authority. Budget authority that is available for a specified period of time in excess of one fiscal year. This authority generally takes the form of 2-year, 3-year, etc., availability, but may cover periods that do not coincide with the start or end of a fiscally year . For example, the authority may be available from 1 Jul of one year through 30 Sep of the following fiscal year (15 months). This type of multiple-year authority is sometimes referred to as "forward funding" (for distinction, see Full Funding; Multi-Year Budget Planning).
(III) No-year Authority. Budget authority that remains available for obligation for an indefinite period of time, usually until the objectives for which the authority was made available are attained.
(C) Extensions of budget authority are as follows: (I) Reappropriations. Legislative action to continue the obligational availability, whether for the same or different purposes, of all or part of the unobligated portion of budget authority that has expired or would otherwise expire. Reappropriations are counted as budget authority in the year for which the availability is extended.
(II) Continuing Resolution. Legislation enacted by the Legislature of
Congress to provide budget authority for agencies and/or specific activities to
continue in operation until the regular appropriations are enacted. Continuing
resolutions are enacted when action on appropriations is not completed by the
beginning of a fiscal year. The continuing resolution usually specifies a
maximum rate of which the obligations may be incurred, based on the rate of the
prior year, the executive budget request, or an appropriation bill passed by
either or both houses of the legislative body.
(17) "Budget deficit" means the amount by which the Government's
budget outlays exceed its budget receipts for a given fiscal year (see also
Balanced Budget; Budget Surplus).
(18) "Budget estimates" means estimates of budget authority, outlays,
receipts, or other budget measures that cover the current and budget years.
(19) "Budget surplus" means the amount by which the Government's
budget receipts exceed its budget outlays for a given budget/ fiscal year (see
also Balanced Budget; Budget Deficit).
(20) "Concurrent resolution on the budget" means a resolution passed
by both Houses of Congress, but not requiring the signature of the President,
setting forth, reaffirming, or revising the congressional budget for the United
States Government for a fiscal year. Two such resolutions are required before
the start of a fiscal year. The first, due by 15 May, establishes the
congressional budget targets for the next fiscal year; the second, scheduled to
be passed by 15 Sep, sets a ceiling on budget authority and outlays and a floor
on receipts. Additional concurrent resolutions revising the previously
established budget levels may be passed by Congress at any time (see also
Congressional Budget; First Concurrent Resolution on the Budget; Second
Concurrent Resolution on the Budget).
(21) "Congressional budget" means the budget as set forth by Congress
in a concurrent resolution of the budget. By law the resolution includes:
(A) The appropriate level of total budget outlays and of total new budget authority;
(B) An estimate of budget outlays and new budget authority for each major functional category , for undistributed intergovernmental transactions and for such other matters relating to the budget as may be appropriate to carry out the purposes of the 1974 Congressional Budget and Impoundment Control Act;
(C) The amount, if any, of the surplus or deficit in the budget;
(D) The recommended level of federal receipts; and
(E) The appropriate level of the public debt (see also Concurrent Resolution
on the Budget; President's Budget).
(22) "Cost-based budgeting" means budgeting in terms of costs to be
incurred, that is, the resources to be consumed in carrying out a program,
regardless of when the funds to acquire the resources were obligated or paid,
and without regard to the source of funds (i.e., appropriation). For example,
inventory items become costs when they are withdrawn from inventory , and the
cost of building is distributed over time, through periodic depreciation
charges, rather than in a lump sum when the buildings are acquired. Cost-based
budgeting, in lieu of reflecting the obligational requirements for programs,
reflects costs expected to be incurred during the budget year .
(23) "Deficiency appropriation" means an appropriation made to an
expired account to cover obligations that have been incurred in excess of
available funds. Deficiency appropriations are rare since obligating in excess
of available funds generally is prohibited by law. Deficiency appropriation is
sometimes erroneously used as a synonym for supplemental appropriation (see
also Anti-deficiency Act; Apportionment; Deficiency Apportionment; Supplemental
Appropriation).
(24) "Deficit financing" means a situation in which the federal
government's excess of outlays over receipts for a given period is financed
primarily by borrowing from the public.
(25) "Deobligation" means a downward adjustment of previously
recorded obligations. This may be attributable to the cancellation of a project
or contract, price revisions, or corrections of estimates previously recorded
as obligations.
(26) "Fiscal policy" means ASG policies with respect to taxes,
spending and debt management, intended to promote the territories macroeconomic
goals, particularly with respect to employment, gross domestic product, price
level stability, and equilibrium in balance of payments. The budget process is
a major vehicle for determining and implementing ASG fiscal policy. The other
major component of macro-economic policy is monetary policy which is determined
at the federal level.
(27) "Fiscal year" means any yearly accounting period, without regard
to its relationship to a calendar year. The fiscal year for the ASG begins on 1
act and ends on 30 Sep. The fiscal year is designated by the calendar year in
which it ends; for example, fiscal year 1980 is the year beginning 1 act 79 and
ending 30 Sep 80 (prior to fiscal year 1977, the ASG fiscal year began on 1 Jul
and ended on 30 Jun).
(A) Budget Year. The fiscal year for which the budget is being considered; the fiscal year following the current year .
(B) Current Year .The fiscal year in progress.
(C) Prior Year .The fiscal year immediately preceding the current year.
(28) "Full funding" means the providing of budgetary resources to
cover the total cost of a program or project at the time it is undertaken. Full
funding differs from incremental funding, where budget authority is provided or
recorded for only a portion of total estimated obligations expected to be
incurred during a single fiscal year. Full funding is generally discussed in
terms of multi-year programs, whether or not obligations for the entire program
are made in the first year.
(29) "Grants" means assistance awards in which substantial
involvement is not anticipated between the federal government and the state or
local government or other recipient during the performance of the contemplated
activity. Such assistance is not limited to a state or local government as in
the case of grants-in-aid.
The two major forms of federal grants are block and categorical. Block grants are given primarily to general purpose governmental units in accordance with a statutory formula. Such grants can be used for a variety of activities within a broad functional area. Examples for federal block-grant programs are Omnibus Crime Control and Safe Streets Act of 1968, Comprehensive Employment and Training Act of 1973, Housing and Community Development Act of 1974, and the 1974 Amendments to the Social Security Act of 1935 (Title XX).
Categorical grants can be used only for a specific program and are usually limited to narrowly defined activities. Categorical grants consist of formula, project, and formula-project grants.
Formula grants allocate federal funds to states or their subdivisions in accordance with a distribution formula prescribed by law or administrative regulation.
Project grants provide federal funding for fixed or known periods for
specific projects or the delivery of specific services of products (see also
Grant-In-Aid).
(30) Grants-in-Aid. For purposes of the budget, grants-in-aid consist of budget
outlays by the federal government to support state or local programs of
governmental service to the public. Grants-in-aid do not include purchases from
state or local governments or assistance awards to other classes of recipients
(e.g., outlays for research or support of federal prisoners). (See also Grants,
Revenue Sharing).
(31) "Incremental funding" means the provision (or recording) of
budgetary resources for a program or project based on obligations estimated to
be incurred within a fiscal year when such budgetary resources will cover only
a portion of the obligations to be incurred in completing the program or
project as programmed. This differs from full funding, where budgetary
resources are provided or recorded for the total estimated obligations for a
program or project in the initial year of funding (for distinction, see Full
Funding).
(32) "Multi-year budget planning" means a budget planning process
designed to make sure that the long-range consequences of budget decisions are
identified and reflected in the budget totals. Currently, multi-year budget
planning in the executive branch encompasses a policy review for a 3-year
period beginning with the budget year, plus projections for the subsequent 2
years. This process provides a structure for the review and analysis of
long-term program and tax policy choices (see also Full Funding; Projections).
(33) "Object classification" means a uniform classification
identifying the transactions of the Government by the nature of the goods or
services purchased (such as personnel compensation, supplies and materials, and
equipment), without regard to the agency involved or the purposes of the
programs for which they are used.
(34) "Obligational authority" means the sum of (A) budget authority
provided for a given fiscal year, (B) balances of amounts brought forward from
prior years that remain available for obligation, and (C) amounts authorized to
be credited to a specific fund or account during that year, including transfers
between funds or accounts.
(35) "Obligations-based budgeting" means financial transactions
involving the use of funds are recorded in the accounts primarily when
obligations are incurred, regardless of when the resources acquired are to be
consumed. (For distinction, see Cost-Based Budgeting.)
(36) "Obligations incurred" means amounts of orders placed, contracts
awarded, services received, and similar transactions during a given period that
will require payments during the same or a future period. Such amounts will
include outlays for which obligations had not been previously recorded and will
reflect adjustments for differences between obligations previously recorded and
actual outlays to liquidate those obligations.
(37) Outlays. Obligations are generally liquidated when checks are issued or
cash disbursed. Such payments are called outlays. In lieu of issuing checks,
obligations may also be liquidated (and outlays occur) by the maturing of
interest coupons in the case of some bonds, or by the issuance of bonds or
notes (or increases in the redemption value of bonds outstanding).
Outlays during a fiscal year may be for payment of obligations incurred in
prior years (prior-year outlays) or in the same year. Outlays, therefore, flow
in part from unexpended balances of prior-Year budget authority and in part
from budget authority provided for the year in which the money is spent. The
terms expenditure and net disbursement are frequently used interchangeably with
the term outlays.
(38) "Oversight committee" means the legislative committee charged
with general oversight of the operation of an agency or program. In most cases,
but not all, the oversight committee for an agency is also the authorizing
committee for that agency's programs (see also Authorizing Committee).
(39) "Personnel compensation" comprises gross compensation (before
deduction for taxes and other purposes) for services of individuals, including
terminal leave payments. This classification covers all payments (salaries,
wages, fees) for personal services rendered to the Government by its officers
or employees, either civil or military, and compensation for special services
rendered consultants or others.
(40) "Personnel benefits" comprises cash allowances paid to civilian
and military employees incident to their employment and payment to other funds
for the benefit of employees. Prerequisites provided in kind, such as uniforms
or quarters, and payments to veterans and former employees resulting from their
employment are excluded.
(41) "Planned fiscal year" is the fiscal year immediately preceding
the budget year .
(42) "Program" is generally defined as an organized set of activities
directed toward a common purpose, or goal, undertaken or proposed by an agency
in order to carry out its responsibilities. In practice, however, the term
program has many uses and thus does not have a well-defined, standard meaning
in the legislative process. Program is used to describe an agency's mission,
programs, functions, activities, services, projects, and processes.
(43) "Program evaluation," in general, is the process of assessing
program alternatives, including research and results, and the options for
meeting program objectives and future expectations. Specifically, program
evaluation is the process of appraising the manner and extent to which
programs:
(A) Achieve their stated objectives;
(B) Meet the performance perceptions and expectations of responsible public officials and other interested groups;
(C) Produce other significant effects of either a desirable or undesirable character .
(44) "Projections " means estimates of budget authority, outlays,
receipts, or other budget amounts that extend several years into the future.
Projections generally are intended to indicate the budgetary implications of
continuing or proposed programs and legislation for an indefinite period of
time. These include alternative program and policy strategies and ranges of
possible budget amounts. Projections usually are not firm estimates of what
will occur in future years, nor are they intended to be recommendations for
future budget decisions. .
(45) "Reprogramming" means utilization of funds in an appropriation
account for purposes other than those contemplated at the time of
appropriation.
(46) "Rescission " means the consequence of enacted legislation that
cancels budget authority previously provided by the Legislature before the time
when the authority would otherwise lapse; i.e., cease to be available for
obligation.
(47) "Revenue sharing" means federal funds distributed by formula to
states and general-purpose local governments with few or no limits on the
purposes for which the funds may be used and few restrictions on the procedures
which must be followed in spending the funds (see also Grants-in-Aid).
(48) "Subfunction " means subdivisions of a budget function. For
example, health care services and health research are subfunctions of the
function health.
(49) "Subsidy" means, generally, a payment or benefit made by the ASG
for which there is no current charge. Subsidies are designed to support the
conduct of an economic enterprise or activity, such as utility operations. They
may also refer to provisions in the tax laws that provide certain tax
expenditures and to the provisions of loans, goods, and services to the public
at prices lower than market value, such as interest subsidies.
(50) "Substantive law" means statutory public law other than
appropriation law; sometimes referred to as basic law. Substantive law usually
authorizes, in broad general terms, the executive branch to carry out a program
of work. Annual determination as to the amount of the work to be done is
usually thereafter embodied in appropriation law.
(51) "Supplemental appropriation " means an act appropriating funds
in addition to those in an annual appropriation act. Supplemental
appropriations provide additional budget authority beyond the original
estimates for programs or activities (including new programs authorized after
the date of the original appropriation act) in cases where the need for funds
is too urgent to be postponed until enactment of the next regular appropriation
bill. Supplementals may sometime include items not appropriated in the regular
bills for lack of timely authorizations (see also Anti-deficiency Act;
Apportionment; Appropriation Act; Deficiency Apportionment; Deficiency
Appropriation).
History: Rule 3-83, eff 4 Apr 83. § C.2.
Basically, the budget is a plan which
specifies what, how, when, who and how much it take:, to achieve pre-determined
objectives. Broadly speaking, however, the budget serves many other important
purposes which are often functionally diffused and frequently misunderstood
because of its subtle influence on the decision making process. Some of these
purposes are explained in the following section.
History: Rule 3-83, eff 4 Apr 83, § D.l.
(a) As a planning tool, the budget serves the
following functions:
(1) To allocate the production and delivery of goods and services between the
public and the private sector;
(2) To distribute the limited resources productively and equitably among
competing agency and public demands;
(3) To stabilize local fiscal policies aimed at stimulating employment
opportunities, industrial production, equitable interest rates and a balanced
approach towards economic, social and political growth.
(b) As a managerial tool, public managers use the budget document to merge
various sectoral plans to form an agency plan of action for the ensuing fiscal
year, to control the operating strategies within the approved agency plan, to
evaluate agency performance and to monitor agency compliance with the
appropriation act as well as other ASG policies and regulations applicable to
the budgetary process.
History: Rule 3-83. eff 4 Apr 83, § D.2.
(a) It shall be the policy of the American Samoa Government to use the "all-inclusive concept" in its budgetary process. This concept, described simply, calls for the inclusion of estimated outstanding obligations and supplies and materials inventory on hand at the end of the current fiscal year plus new appropriated funds to determine total resources available to an agency for its planned programs. For example, if Agency "A " estimate its planned programs for the budget year will cost $500,000 and its projected outstanding obligations and supplies inventories are $100,000 and $50,000 respectively, the contract between the old budget concept and the new all-inclusive concept should look something like this:
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Old Budget |
New All-Inclusive |
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Agency "A" |
Concept |
Concept |
Variance |
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Estimated outstanding obligations |
$ -0- |
$100,000 |
($100,000) |
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Estimated supplies inventory |
-0- |
50,000 |
(50,000) |
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Request for appropriated funds |
500,000 |
350,000 |
150,000 |
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Total Planned Programs |
$500,000 |
$500,000 |
$ -0- |
(b) The difference between the two concepts is the impact on
appropriated funds. Under the old concept, Agency "A" will receive $500,000
for its planned programs from appropriated funds plus $150,000 from outstanding
obligations and supplies inventories over and above
its planned requirements. Under the new concept only $350,000 will be needed
from appropriated funds to complete the resource requirements for Agency
"A "'s planned programs.
(c) The key to the success of this new concept is the reasonable accuracy of the estimates for outstanding obligations and supplies inventories and the provision of some flexibility in the budget to make up for the errors in the estimates. The agency and the department of administrative services are responsible for accurate estimates of the items mentioned while budget flexibility will be the responsibility of the OPPBD.
History: Rule 3-83, eff4 Apr 83, § D.3.
IV. Budget Development Process
(a) The basic principles which guide the
budget developmental process for the ASG are contained in the Executive Budget Act.
Supplementing these principles are federal rules and policies which control the
application, receipt, execution and evaluation of federal funds and their uses.
(b) For all practical purposes, these guiding principles are subject to change
as a result of amendments to existing laws, introduction of new laws, different
philosophies and managerial perspectives of a new administration or other
operating constraints beyond the control of the ASG.
(c) This budget manual attempts to develop a framework which not only builds
capacity within those individuals involved in the budget process but also
flexible enough to accommodate both short and long term changes. For example,
the ASG through the evolutionary process retained the basic budget format from
which important information can be extracted and laid out differently to
accommodate the Governor's and the local legislative reviews, the Department of
the Interior requirements and the annual congressional budget submission.
Moreover, the enforcement of the Executive Budget Act is done in phases to
insure understanding of the basic concepts contained in each phase before the
next one begins, to insure selection of only the most useful information
desired by the managers for evaluation purposes and to make sure that the cost
of information gathering, processing and evaluating does not outweigh the
benefits to be gained.
History: Rule 3-83. eff 4 Apr 83, § E.l.
5.0108 Policy planning and future outlook.
(a) The first step in the budget development
is the determination by the Governor (based on assessment of past achievements,
current problems and future plans) of the territorial priorities to be
addressed during the budget year, identification of the most critical issues to
be resolved, specification of his operating strategies, a preliminary estimate
of resource requirements for the budget year and their projected impact over
the next four years, an assessment of the territorial and world economic
outlook and impact on estimated resources and an inventory of legislative
proposals required to implement the proposed programs. The Governor's
determination is normally made in conceptual terms which are later summarized
and translated into specific targets for use by the agencies in the preparation
of their preliminary budget proposals.
(b) By December first of each year, the director of development planning office
will provide the Governor with charts and graphs depicting employment trends,
industrial production, inflation rate, interest rates and sales trends with appropriate
narratives explaining the assumptions supporting his perceptions of the
territory's future economic outlook. The projections should cover the period of
five years (budget year plus four years in the future). The original and two
copies should be sent to the Governor with carbon copies to the director of
planning and budget.
(c) Between the first of October and the last day of November each year, ASG
agencies are requested by the office of program planning and budget (OPPBD)
explaining the present status of their programs, what they intend to accomplish
in the current fiscal year, the nature of the improvements they foresee during
the budget year and general ideas as to what is envisioned as the agency's
mission for the planned fiscal year and how this relates to the overall
objectives for the ASG. The GDPM's are due at the OPPBD on the last day of
November each year. OPPBD will summarize all of the agencies' GDPM's, develop
three options and present them to the Governor on the third week of December
for his consideration. This information, together with OPPBD's estimate of
resource requirements and legislative changes desired plus the director of
development planning office's economic outlook will form the basis for the
Governor's determination of policy planning and future outlook for the
territory.
History: Rule 3-83. eff 4 Apr 83, § E.2.
5.0109 Call for preliminary budgets.
(a) Based on the Governor's determination of policy
direction, the OPPBD issues a call for the preparation of preliminary budgets
for the planned fiscal year specifying the future policy direction, budget
forms required for each departmental activity and the department, the due date
and other special instructions to assist the agencies in the preparation of
their budgets.
(b) For each department or office, the following budget forms are required:
(1) Summary-2 Departmental highlight statement;
(2) Summary-3 Resource summary.
(c) For each departmental activity, the following budget forms are required:
(1) Detail-l Program budget summary;
(2) Detail-2 Personnel costs;
(3) Detail-3 Travel expense;
(4) Detail-4 Contractual services;
(5) Detail-5 Materials and supplies;
(6) Detail-6 Equipment;
(7) Detail-7 All other costs;
(8) Detail-8 Motor vehicle schedule.
(d) In addition to the above forms, each department or office should
submit in 8Y2" X 14" paper its latest approved organizational chart
as part of its budget submission.
(e) The completion of the above requirements constitutes the official budget
submission of an agency. Letters transmitting the budget, copies of
cost/benefit analyses and studies, etc. are optional unless requested by the
OPPBD.
(f) The budget office requires the original and copy of all forms at the
specified date in the approved budget calendar for the given fiscal year .
History: Rule 3-83, eff 4 Apr 83, § E.3.
V. Budget Forms and Instructions
5.0110 Summary-2-Departmental highlight statement.
(See Figure 1 for sample)
Department Request. A summary statement stating the departmental mission,
outcomes expected and total funding request.
Governor's Recommendations. (For budget use only).
Functional Statement. State briefly the functional responsibilities of the department.
The most recent information on the ASG reorganization may be used for this
purpose or modified to fit the department's needs. Reference to laws, executive
orders, policy memorandums or other documents creating the department of office
is required. Long-term Goal and Impact on Territorial Goals. State the
department's long-term goal and identify specifically (in quantifiable terms if
necessary) the contribution by the department towards the attainment of
territorial goals contained in the economic development plan or other relevant
plans.
Budget Year Objectives. State clearly and concisely the departmental objectives
you intend to accomplish in the fiscal year.
Projected Accomplishments for this Activity. If measures of outcomes or
effectiveness (such as reduced accident rates, higher test scores, etc.) are
not available, substitute workload measures. Do not use dollar figures unless
you are measuring average cost of production per unit or other performance
measures requiring dollars.
History: Rule 3-83. eff 4 Apr 83. § E.4 (part).
5.0111 Summary-3-Resource summary.
(See Figure 2 for sample format)
This form contains resource requirements, budget history , funding for budget
year, object class summary and staffing requests for each unit. The information
to complete this form comes from Detail-l and Detail-2 forms. Detail-l provides
the object class summary and budget history while Detail-2 provides the
staffing requests for each activity.
To complete this form, start with the grant accounts first and subtotal it. Next, list all the special programs and enterprise funds under the agency's jurisdiction and subtotal it. Finally, list all the activities funded by appropriated funds and subtotal it. Compute grand totals from the three subtotals and record them on the line for the budget year.
Identification. Fill in department name, unit title, account number for unit, date document was finalized and person's name who prepares Summary-3.
Funding Source. Mark the appropriate box to identify the funding source based on the subtotals shown on the form.
Approved Budget. The totals for this line are compiled by adding the object class totals on all the Detail-l forms within the agency.
Actual Expenditures. Same instructions as the "approved budget" line.
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
5.0112 Detail-1-Program budget summary.
(See Figure 3 for sample format)
Identification. Fill in department name, activity,
account number, date prepared and preparer's name who will provide testimony during
the review process.
Funding Source. Put an "X" in the
appropriate box to identify the funding source for the activity.
Objective. State briefly and in quantifiable terms
what the activity intends to accomplish during the budget year.
Output Measures. Identify measures of output and
quantify each measure.
Budget Requirements. Post object class totals from forms Detail-2 to Detail-7. For quarterly apportionments, either divide each object class into four equal installments or according to your agency's annual work plan.
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
5.0113 Detail-2-Personnel costs.
(See Figure 4 for sample format)
This form analyzes your needs for personnel. Start your listing with contract
employees and subtotal this category .Next, list your local employees and
subtotal this group. The sum of the two subtotals should equal your total
salaries. Explanation of requirements under column is shown below: Position No.
Refers to number shown on computerized personnel reports.
Employee Name. The name of the person currently occupying the position. This
schedule will remain in the budget office and is intended for internal use
only. A different format, excluding the employee's name will be used for public
documents. Position Title. The title shown on the computerized personnel
reports. If there are any changes in titles between the reports and the budget
documents, there should be a reconciliation and explanation of the differences.
Grade/Step. The salary grade and step shown on the latest computerized reports.
If the position is vacant, show the budgeted grade and step. Current Salary.
Show the employee's current salary including any increment entitlements during
the current fiscal year.
Step Increments. Show the next step to which the employee is entitled during
the budget year. If the employee has reached the top of his grade, show zero
unless the position has been reclassified and approved. Other Change. Show
increase or decrease in salaries due to promotions, reclassifications, demotions,
position terminations, interagency transfers, downgrades and tenure awards.
Proposed Funding. Show the current employee's current salary plus his step
increment including any extraneous adjustments to his position. Care should be
taken to record only that portion of the increment that is due within the
budget year. This would mean close scrutiny of the anniversary dates,
promotions, etc. Explanation of Other Change. Refers to position deletions,
additions, promotions, tenure awards, demotions, reclassifications, transfers, etc.
Overtime. Based on actual cost in prior fiscal year, analyze the circumstances that created the overtime, provide an estimate of the absolute minimum required and offer alternative solution to overtime.
Fringe Benefits. This item is computed against total salaries for career service and contract employees. Overtime should be charged the career service rate.
|
|
Career Service |
Contract Employees |
|
FICA Taxes-Employer's share |
(a) |
|
|
ASG retirement |
|
|
|
Workmen's Compensation (Composite rate) |
|
|
|
Terminal leave |
|
|
(a) No consideration
is given to the maximum ceiling taxable under FICA taxes since it is estimated that
less than 1% of the ASG total workforce will exceed the maximum subject to FICA
which is $29,700 per annum.
Total Personnel Costs. Sum of total salaries,
overtime and fringe benefits.
Rounded Totals (to nearest $500). Total personnel costs should be rounded to the nearest $500 and recorded on this line. These should be the totals that are transferred to Detail-l.
Staffing. Show the total number of positions for
local and contract employees. This block should tie in all the positions listed
on Detail-2 forms.
History:
Rule 3-83. eff 4 Apr 83, § E.4 (part).
5.0114 Detail-3-Travel expense.
(See Figure 5 for sample format)
This form details the information required to justify the request for travel
expenses. Request for travel funds must be justified and each request must
stand on its own merits. There is no automatic travel allowance budget, that
is, if your department was given $10,000 for travel
last fiscal year, it does not mean that your department will automatically be
entitled to $10,000 plus any increments this fiscal year.
Format. The new format is similar to the old form with the exception of the addition of "household effects to travel costs." In the past, this item was budgeted under "all other costs" expense category. For the latest ASG policy on the shipment of household effects for contract personnel and per diem rates, please check with the director of administrative services to assist you in your projections.
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
5.0115
Detail-4-Contractual services.
(See Figure 6 for sample format)
This form provides justification for the budget request for contractual
services.
Consultant. Justification for the project should include the need for the
project, targets for consultation, benefits to be derived from the project and
alternative solutions considered. Cost estimates should be broken down between
air fare, per diem, fees and other expenses.
Maintenance. For duplicating machines, typewriters and other office machines a
current fee schedule should be obtained from the contracting office to guide
you with your projections. For specialized equipment or other facilities
maintenance, use actual data from previous years to base your calculations. In
justification, it is suggested that the total number of machines by make be
shown and their average life since acquisition stated. In this connection, it
would be prudent to review the recently compiled ASG fixed assets inventory to
ascertain what you actually have and budget accordingly. (Note: If there are any discrepancies between
the inventory and your physical count, please contact the property management
division for any adjustments and not the budget office).
Employee Training. These estimates
should include only the benefits provided by contract to those employees who
are off-island on training except salaries. Salaries should continue to be
shown under Detail-2.
Others (Specify ). This category may include contracts for promotional activities and sub-contracts for operating programs which the department lets to the private sector for handling. In any event, justification requirements are similar to those specified under "consultants."
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
5.0116 Detail-5 -Materials and supplies.
(See Figure 7 for
sample format) This form provides detail justification for the budget request
for materials and supplies. In projecting your needs you should analyze actual
usage and cost for this expense category in the previous fiscal year, compare
it with the approved budget and deduct inventory on hand at the end of the
fiscal year to arrive at your actual needs. On the basis of this information
and your projected service levels for the proposed fiscal year, estimate your
funding requirements and add 8% for inflation.
History: Rule 3-83, eff4 Apr 83, § E.4 (part). 5-14
(See Figure 8 for
sample format)
This form provides detailed justification for the budget request for equipment.
Estimates for these and other equipment should be based on current GSA prices
(which may be obtained from the office of material management) plus an
inflation factor of 8%. If the request is for the replacement of an old piece
of equipment, the item being replaced must be described to include the year and
make, present condition, and a cost benefit analysis between retaining, renting
a new one from a private firm, and buying a new piece of equipment. If the
request is for a new piece of equipment, state specifically the need for it,
describe what is being done now without it and the effectiveness of the present
method, and the net effect if the request was not approved.
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
5.0118 Detail-7-All other costs.
(See Figure 9 for
sample format)
This form provides detailed justification for the budget request for all other
costs not specifically enumerated in other forms or categories. Most of the
costs under this category should be estimated on the basis of actual usage in
past fiscal years, plus an 8% inflation factor .
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
5.0119 Detail-8-Motor vehicle schedule.
(See Figure 10 for
sample format)
This form lists all the vehicles each agency currently owns by type, year,
make, license number, year in which it was purchased, cost, mileage driven, to
whom assigned and identification between those purchased by federal grants and
local and Department of Interior funds. The data produced determines the size
of the ASG fleet, justifies the need for new vehicles and ascertains a
practical replacement program that is efficient and economical.
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
5.0120 CIP-1 -Capital improvement projects.
(See Figure 11 for
sample format)
These forms provide detail information to justify the need for a CIP request.
Each CIP project will be considered separately and no request will be
considered unless adequate pre planning has taken place and only funds to cover
work scheduled for completion during the proposed fiscal year have been
identified. In addition, departments requesting the CIP must identify how the
new CIP will be maintained in the future and where the funds should come from
to maintain the completed facility.
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
5.0121 Enterprise and special revenue funds.
Figure 12 and Figure
13 illustrate the format for enterprise and special revenue funds fashioned
after a profit and loss statement format for business type operations. The
pro-forma statements are projected on the accrual basis of accounting and
allows for the matching of revenues against expenses for the planned fiscal
year.
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
VI. Guidelines, Criteria
and Instructions
For Evaluation of General Fund
Nontax Revenues
5.0122 Guidelines and criteria.
(a) Periodically, it becomes necessary to survey and evaluate the existing
fee structure of non tax revenues accruing to the ASG's general fund. We do not
know when was the last time this was done. Nonetheless, the office of program
planning and budget is conducting a study in order to compile a catalog of
general fund non tax revenues and to examine each fee from the point of
appropriateness and adequacy.
(b) There are no clear-cut criteria that can serve to determine whether an
activity should be appropriately financed from specially levied fees or from
general tax revenues. If it is determined that the individual benefitting from
the service (rather than the general taxpayer) should pay for the service, the
question of how much to charge the individual (whether the fee is equitable and
produces adequate revenues) remains to be answered and again must depend on a
value judgment.
(c) The following are some generally stated guidelines and criteria which can
be used in evaluating the appropriateness as well as the adequacy of fees:
(1) Where governmental services are provided to private individuals and the
receipt of such services accrues to the economic advantage of the individual,
fees should at least cover the cost providing such services.
(2) Where government provides services that are similar to or competitive with
those provided by private industry, fees should equal those charged by private
industry . (3) Where government provides services that are intended primarily for
the protection and promotion of private industry , fees should at least cover
the cost of providing such services.
(4) Revenues from fees may exceed the cost of providing the service if the
level of the fees is imposed to maintain comparability with fees levied for
other similar services, or if the level of the fees is reasonably commensurate
with the value of the services rendered, or if the level of fees is deemed to
be reasonable and nonconfiscatory .
(5) Revenues from fees need not provide the full cost of the service, if the
potential long-term gain to the public justifies such action.
(6) As much as possible, fees for similar services
should be at uniform levels.
(7) Fees imposed on services that are required primarily for the protection of the public should give sufficient consideration to the fact that it is the presence of these activities that creates the need for such protection.
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
(a) Complete and attach this evaluation to the
revenue estimate form.
(b) A separate form must be completed for each revenue source.
(c) Detailed explanation of items:
(1) Item I -Services Provided. Briefly describe the kinds of services for which
fees are being charged by the program.
(2) Item II -Clients Served. List the classes of persons or organizations that
directly benefit from the services provided. The general public may be
benefitted by regulatory and enforcement activities, but the beneficiaries to
be reported in these instances are the licensees of those whose premises or
processes are being inspected.
(3) Item III -Year and Authority to Establish Fee. All user charges should have
a beginning point. If the fee was established by memorandum, state the date of
the most recent memo, initiator's name, nature of authority and attach copy of
memo. If fee was created by law, cite the title and section number of the
American Samoa Code.
(4) Item IV -Adequacy of Current Fees. Report dollars realized from the
services provided and the total of all costs. It may be necessary to prorate
the costs if the same resource is used to provide more than one type of
service, i.e., if the same program/organizational unit receives revenues from
more than one nontax revenue source.
(5) Item V -Recommended Fee Structure. List each different type of rate being
charged, including a description, the current rate, the recommended rate, and
whether legislation, administrative action or other action is required to
achieve the changes.
(6) Item VI -Comments on Recommended Fee. Include the reasons for recommending
or not recommending changes to the fee structure. If changes are recommended,
include the proposed course of action and timetable for achieving the changes.
(7) Item VII -Net Effect of Recommended Fees. As in Item IV report all dollars
realized from the services provided but this time on the basis of the revised
fee structure.
(d) This form may also be used to recommend the establishment of fees for those
services which are currently being provided without charge. In this case, Item
IV need not be completed.
(e) If no change to the fee structure is being recommended, complete Items I,
II, III, IV, V (reporting "no change") and VI (with reasons for not
recommending any change). Omit Item VII.
See Figure 14 and 15 for completed sample formats
for general fund nontax revenues and local tax revenue estimates.
History: Rule 3-83, eff 4 Apr 83, § E.4 (part).
5.0124 First local budget review.
(a) Preliminary budget proposals for the budget year are normally due on the
first week of February .During the remainder of February , the OPPBD analyzes
agency budgets, directs inquiries to the agencies for more information, informs
the agencies of its tentative decisions based on the initial review, receives
reactions from the agencies and conducts budget negotiations with the agency
directors where disagreements exist.
(b) Where the agency director finds it necessary to appeal his case, he has the
first week of March to discuss his agency's budget request with the Governor.
His appeal is focused primarily on the areas of disagreement between the OPPBD
and his agency. After his appeal, the Governor's
decision becomes final and binding on both the agency director and the OPPBD .
The Governor's decision is to be communicated in writing to the parties
involved.
(c) During the remainder of March, the OPPBD
devotes the rest of the time to make final changes and technical adjustments to
the agency requests, prepares final revenue projections, makes appropriate
summaries for the Governor's review of the final trade-offs to be made and
prepares the budget document for printing and the budget resolution for the
Fono's consideration.
(d) The Fono reviews the budget resolution during the first half of April and accepts it in principle or revises it piecemeal or rejects it in its entirety. During the Fono review, directors are called to testify before the appropriate committees concerning their budget requests. The remainder of April is devoted to translating the approved budget resolution together with comments from the Governor and the Fono into the Department of Interior budget format. American Samoa 's preliminary budget proposal is due at DOl on the middle of May.
History: Rule 3-83, eff 4 Apr 83, § E.5.
(a) The federal budget review process depends on the whims of each
administration. For example, some administrations prefer open communication and
appeal for both departmental and OMB passback while others prefer total secrecy
until ASG is told to make the necessary revisions to the ASG budget for the
Presidential submission to the U .S. Congress. Under the policy of open
communication, the office of territorial and international affairs (OTIA) would
inform the ASG about the Department of the Interior (DOl) passback. In
consultation with the Fono leaders and chairmen of the appropriations
committees of both houses, the Governor advises the OTIA of the areas adjusted
and those which ASG would strongly appeal even to the extent of asking the
appropriate congressional committees to include them as add-ons in their
deliberations. Final decisions by OTIA are made by mid-June. The DOl budget is
then forwarded to OMB in mid-September. Between mid-September and mid-December
the consultation and concurrence process continues among OMB, DOl, OTIA and the
ASG. Final allowance for ASG is advised in mid-December with appropriate
revisions to the DOl budget due in Washington D.C. before the first of January
for inclusion in the President's budget.
(b) The next step is for OPPBD to prepare for the congressional budget hearings
which are normally scheduled between March and June of the following year. This
involves the preparation of budget briefings for the Governor and those
attending the hearings in anticipation of committee questions. The briefing
summarizes the texts from past hearings, departmental accomplishments and
future plans, financial status of the ASG, current status of ClP and federally
funded special programs, status of economic, social and political developments,
the identification of the most critical problems facing
the territory and reporting on long range plans for the ASG .
(c) At the conclusion of the budget hearings,
OPPBD staff remain in Washington D.C. to edit the hearing transcripts, provide
answers to additional committee questions, follow through with OTlA and
congressional staff on additional data requirements and perform liaison
services between the ASG, various congressional offices, DOl and OMB on budget
matters.
(d) Based on past experience, results of final congressional actions are communicated between late September and the first half of December.
History: Rule 3-83, eff 4 Apr 83, § E.6.
