(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:
Old Budget New All-Inclusive
Agency "A" Concept Concept Variance
Estimated outstanding obligations $ -0- $100,000 ($100,000)
Estimated supplies inventory -0- 50,000 (50,000)
Request for appropriated funds 500,000 350,000 150,000
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.