III.D.2.  The institution’s mission and goals are the foundation for financial planning, and financial planning is integrated with and supports all institutional planning.  The institution has policies and procedures to ensure sound financial practices and financial stability.  Appropriate financial information is disseminated throughout the institution in a timely manner. 

Financial Planning is an integrated component of institutional planning to meet its mission and goals.  It is linked to the ASCC Institutional Strategic Plan 2009-2014, and the updated plan 2015 through 2020.  ASCC’s Institutional Strategic Plan outlines the institution’s goals and priorities each fiscal year, which drives the annual budget and long-range fiscal planning. ^{1, 2}

From 2011 to 2012, the American Recovery Reinvestment Act (ARRA) stimulus funding enabled the College to renovate and improve all of its classrooms, science labs, computer labs, and offices. ARRA funding also supported a number of program improvements that were aligned to planning documents for the institution’s strategic focus areas, including Academic Excellence, Staffing, Technology, and Physical Facilities Maintenance. ³In fiscal year 2014, ASCC began construction of the Multipurpose Center, with an expected completion date of February 2016.  This construction project is funded by the Department of Interior (DOI).

The President and the Board of Higher Education discuss the financial planning annually and align the priorities of the institution based on the Institutional Strategic Plan, which was the result of institutional program review and divisional assessment recommendations.⁴

ASCC’s unrestricted net position for the past three years are as follows:⁵

Year 2012:  125,509 ⁶
Year 2013:  458,404 ⁷
Year 2014:  1,835,643 ⁸

ASCC receives its revenue by way of monthly apportionment of annual approved funding from the American Samoa Government (ASG) and DOI. ASCC also generates internal collections from monthly reimbursements of federal grants expenditures, the College’s portion of Federal Pell Grants, third party inflows, and cash payments for tuition and other fees.

In fiscal year 2011, ASG did not fully disburse the approved appropriation as mandated.   Due to the economic downturn, ASG decreased ASCC’s subsidy again in fiscal year 2012.  However, in Fiscal Year 2014, ASG appropriated an additional $650,000 for ASCC’s operation.

From fiscal years 2009 to 2013, the institution did not have sufficient cash flow and reserves to maintain stability.  In the midst of this financial crisis, ASCC developed strategies leading to the institution’s fiscal recovery.  ASCC temporarily implemented the following cost containment measures and additional funding proposals ⁹

• Suspend locally funded annual salary increments,
• Freeze locally funded travels,
• Freeze locally funded new hires,
• Freeze reclassification
• Maximize allowable grant cost sharing – which includes ARRA Stimulus Funding received in 2011.
• Scrutinize all purchase requests
• Incremental Tuition Rate Increase – 2011, 2012, 2013

Since the implementation of the above listed cost containment measures, ASCC’s cash flow has improved.   Therefore, the cost containment measures were lifted at the end of fiscal year 2013.

As evident of the institution’s improved financial status, in 2015 ASCC was able to set aside the following cash reserves

• $503,057 Operation Cash Reserve
• $100,106 Multi-Purpose Center Maintenance Set Aside (Total Cost of Ownership)

The College property insurance coverage is included with the government wide insurance package under the auspices of the ASG. Other semiautonomous organizations contribute to the ASG insurance policy. The property insurance coverage is reviewed biennially to ensure that the facilities are adequately protected. ¹⁰

Given the cyclical nature of tuition collections, various grant payment or reimbursement policies, and previous variable transfer of appropriated funds from ASG to ASCC, the College's cash flow position remains steady.  In addition, ASCC routinely monitors its cash flow through the Daily Cash Position Report (DCPR) to ensure the institution’s financial stability.¹¹

1 - ISP 2015-2020 Budget Alignment pages 59-70,
2 - ASCC Budget Comparison Report FY2014, FY2015, FY2016 with ISP Linkage (Updated September 8, 2015)
3 - ARRA Financial Summary Report
4 - BHE Budget Presentations 2014 & 2015
5 - Schedule of Financial Trends & Analysis
6 - Audit Report 2012
7 - Audit Report 2013
8 - Audit Report 2014
9 - Cost Containment Memo
10 - Property Insurance 2014-2016 Premium
11 - Daily Cash Position Report