A report released in American Samoa by the General Accounting Office on federal grants says that the administration's failure to complete audits limited accountability.
The GAO found that despite the failure to carry out audits, US federal agencies were slow, or failed to communicate concern to the American Samoa Government or to take corrective action.
In addition it says, accountability for all grants was potentially undermined by instances of theft and fraud.
The report found that a shortage of adequately trained professionals such as accountants and teachers, and inadequate facilities hampered hampered service delivery or slowed project completion for many grants.
The accounting study was initiated by Congressman Faleomavaega Eni Hunkin who requested a study of foreign investment in American Samoa and its impact on local businesses.