28 May 2009

US budget submission rates American Samoa as high risk

1:39 pm on 28 May 2009

The United States Department of Interior's Office of Insular Affairs has informed Congress in its fiscal year 2010 budget submission that American Samoa remains at high risk.

In an effort to improve accountability for federal funds, it informed Congress that it has designated the Territory as a high-risk grantee as it was recommended by the General Accounting Office and the Office of Inspector General.

It says this designation allows it to require American Samoa grantees to comply with special conditions for future or existing grants.

The special conditions may include payment of grant funds on a reimbursable basis, withholding of approval to proceed from one project phase to another until receipt of acceptable evidence of current performance, additional project monitoring, and requiring the grantee to obtain technical or management assistance.

The high-risk designation will be removed once the American Samoan government complies with a number of conditions.