Chapter 05 - Budget Procedure

Chapter 05 - Budget Procedure

10.0501 Purpose.

It is the purpose of this act to establish a comprehensive system for territorial program and financial management which furthers the capacity of the Governor and Legislature to plan and finance the services which they determine the territory will provide its people. The system includes procedures for:

(1) the orderly establishment, continuing review and periodic revision of the programs and financial goals and policies of the territory;

(2) the development, coordination and review of long-range program and financial plans that will implement established territorial goals and policies;

(3) the preparation, coordination and analysis, and enactment of a budget organized to focus on territorial services and their costs, that authorizes the implementation of policies and plans in the succeeding budget period;

(4) the evaluation of alternatives to existing policies, plans and procedures that offer potential for more efficient or effective territorial services;

(5) the regular appraisal and reporting of program performance; and

(6) the basic authority of the Secretary of the Interior for the administration of the territory of American Samoa shall in no way be derogated by this chapter.

10.0502 Responsibilities of the Governor.

(a) The Governor shall direct the preparation and administration of the territorial budget. He shall evaluate the long-range program plans, requested budgets and alternatives to territorial agency policies and programs; and formulate, and recommend for consideration by the Legislature, a proposed comprehensive program and financial plan which shall cover all estimated receipts and expenditures of the government for the general fund and all special funds whether or not their resources are annually appropriated by the Legislature, including all grants, loans and moneys received from the federal government or other agencies both governmental and nongovernmental. Proposed expenditures shall not exceed estimated receipts and surpluses.

(b) In carrying out the intent of this chapter, the Governor shall have full authority and responsibility for preaudit and postaudit functions, as well as formal certification of payments from all appropriated funds, in accordance with policies and procedures of the Treasurer of American Samoa formulated in consideration of and in accordance with the General Accounting Office, the Department of the Treasury, the Department of the Interior, and the Office of Management and Budget rules and regulations, not inconsistent with section 10.0503.

10.0503 Responsibilities of the Legislature.

The Legislature shall:

(1) consider the program and financial plan recommended by the Governor, including proposed goals and policies, recommended budget, revenue proposals, and proposed long-range program plans;

(2) adopt programs and alternatives to the plan recommended by the Governor as it deems appropriate;

(3) adopt legislation to authorize the implementation of a comprehensive program and financial plan; and

(4) provide for a review of program accomplishments and execution of legislative policy direction.

10.0504 Responsibilities of the office of program planning and budget development.

The office of program and budget development shall:

(1) assist the Governor in the preparation and explanation of the proposed comprehensive program and financial plan, including the coordination and analysis of territorial agency program goals and objectives, program plans, and program budget requests;

(2) develop procedures to produce the information needed for effective policy decision-making;

(3) assist territorial agencies in their statement of goals and objectives, preparation of program plans, program budget requests, and reporting of program performance;

(4) administer its responsibilities under the program execution provisions of this chapter so that the policy decisions and budget determinations of the Governor and the Legislature are implemented to the fullest extent possible within the concepts of proper management; and

(5) provide the Legislature with any budget information it may request which is within the area of legislative authority or interest under this chapter. The preliminary budget plan(for fiscal year plus 2) and budget document for next suc-ceeding fiscal year must be submitted 1 week in advance of the respective session.

10.0505 Agency program and financial plan.

(a) Each department or agency of the government on the date and in the form and content prescribed by the office shall prepare and forward to the office the following program and financial information;

(1) the goals and objectives of the agency programs, together with proposed supplements, deletions, and revisions;

(2) its proposed plans to implement the goals and objectives including estimates of future services needs, planned methods of administration, proposed modification of existing program services, and establishment of new program ser-vices, and the estimated resources needed to carry out the proposed plan;

(3) the budget requested to carry out its proposed plans in the succeeding fiscal year; the budget request information shall include the expenditures during the last fiscal year, those estimated for the current fiscal year, those proposed for the succeeding fiscal year, and explanation of the services to be provided, the need for the services, the costs of the services, and any other information requested by the division;

(4) a report of the receipts during the last fiscal year, an estimate of the receipts during the current fiscal year, and an estimate for the succeeding fiscal year;

(5) a statement of any new legislation required to implement the proposed programs and financial plans; and

(6) An evaluation of the advantages and disadvantages of specific alternatives to existing or proposed programs, policies or administrative methods.

(b) The territorial agency proposals prepared under subsection(a) shall describe the relationships of their program services to those of other territorial agencies, of other governments, and of nongovernmental bodies.

(c) The office shall assist agencies in the preparation of their proposals under subsection(a). This assistance may include technical assistance, organization of materials, centrally collected accounting, budgeting and personnel information, standards and guidelines formulations, population and other required data, and any other assistance that will help the territorial agencies produce the information necessary for efficient agency management and effective decision-making by the Governor and the Legislature.

(d) If any territorial agency fails to transmit the program and financial information provided under subsection(a) on the specified date, the office may prepare that information with the same effect as if it had been prepared by the agency itself.

10.0506 Governor's recommendation.

(a) The Governor shall formulate the program and financial plan to be recommended to the Legislature after considering the territorial agency proposed program and financials plans, and other programs and alternatives that he considers appropriate. The plan shall include his recommended goals and policies, recommended plans to implement the goals and policies, recommended budget for the succeeding fiscal year, and recommended revenue measures to support the budget.
(b) The Governor shall present the proposed comprehensive program and financial plan in a message to the Legislature. The message must be preceded by 1 week by a budget document which shall contain the Governor’s recommended goals, plans, and appropriations. The budget document shall be furnished each member of the Legislature and each department or agency of the government. The budget document shall contain the following information:
(1) the coordinated program goals and objectives that the Governor recommends to guide the decisions on the proposed program plans and budget appropriations;
(2) the program and budget recommendations of the Governor for the succeeding fiscal year;
(3) a summary of the territory’s receipts in the last fiscal year, a revised estimate for the current fiscal year, and an estimate for the succeeding year;
(4) a summary of expenditures during the last fiscal year, those estimated for the current fiscal year, and those recommended by the Governor for the succeeding fiscal year;
(5) drafts of appropriation bills and revenue measures; and
(6) any additional information which will facilitate understanding of the Governor’s proposed program and financial plan by the Legislature and the public.
(c) After delivery of the Governor’s message, the bills incorporating his recommendations may be introduced in the Legislature in accordance with the provisions of its standing rules.

10.0507 Legislative review of Governor's proposals.

The Legislature shall consider the Governor’s proposed comprehensive program and financial plan; evaluate alternatives to the Governor’s proposed comprehensive program and financial plan; evaluate alternatives to the Governor’s recommendations; and determine the comprehensive program and financial plan to support the services to be provided the people of the territory; provided, however, that in its determination authorized expenditures shall not exceed estimated receipts and surpluses.

10.0508 Authority for territorial agencies for administering program service assignments.

(a) Except as limited by policy decisions of the Governor, appropriations by the Legislature, and other provisions of law, the territorial agencies shall have full authority for administering their program service assignments, and shall be responsible for their proper management.

(b) Each territorial agency shall prepare an annual plan for the operation of each of its assigned programs. The operations plan shall be prepared in the form and content and be transmitted on the date prescribed by the office.

(c) The office shall:

(1) review each operations plan to determine that it is consistent with the policy decisions of the Governor and appropriations by the Legislature, that it reflects proper planning and efficient management methods, and that appropriations have been made for the planned purpose and will not be exhausted before at the end of the fiscal year;

(2) approve the operations plan if satisfied that it meets the requirements under paragraph(1); otherwise the office shall require revision of the operations plan in whole or in part;

(3) modify or withhold the planned expenditures at any time during the appropriations period if the office finds that the expenditures are greater than those necessary to execute the programs at the level authorized by the Governor and the Legislature, or that the receipts and surpluses will be insufficient to meet the authorized expenditures levels.

(d) No territorial agency may increase the salaries of its employees, employ additional employees, or expend money or incur any obligations except in accordance with law and with a properly approved operations plan.

(e) The office shall report quarterly to the Governor and the Legislature on the operations of each territorial agency, relating actual accomplishments to those planned, and modifying, if necessary, the operations plan of any agency for the balance of the fiscal year.

10.0509 Quarterly performance reports required.

(a) Each territorial agency shall submit a quarterly performance report to the budget office on or before the dates established by that office. These reports shall be in the form prescribed by the office and shall include statements concerning:

(1) the work accomplished and the services provided in the preceding fiscal year or other meaningful work period, relating actual accomplishments to those planned under subsection(b) of 10.0508;

(2) the relationship of accomplishments and services to the policy decisions and budget determination of the Governor and Legislature;

(3) the costs of accomplishing the work and providing the services and, to the extent feasible, citing meaningful measures of program effectiveness and cost;

(4) the administrative improvements made in the preceding quarter, potential improvements in future quarters and suggested changes in legislation or administrative procedures to make further improvements.

(b) The budget office shall summarize the performance reports and forward a copy to the Governor, copies to members of the Legislature no later than 45 days after the end of each fiscal quarter.