The American Samoa Treasury Department estimates the territorial government is owed more than 25 million US dollars in federal government grants.
It made the revelation in a report submitted last month on the initial one hundred days in office of the administration of Governor Lolo Matalasi Moliga.
Many federal grants are made on a reimbursement basis and the department says an aggressive plan has been put in place to have local government coffers immediately reimbursed.
The Treasury found four main reasons for the lapse, including the failure to submit reports on time.
The report says Project Reimbursement's successful completion later this year would eliminate the government's projected 4 million dollar fiscal deficit for 2013.
It says the money would fund vital infrastructure projects, additional staffing and upgraded technology for the government.