Palau’s 2012 National Revenue Collection Up To $43.4 Million

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Palau’s 2012 National Revenue Collection Up To $43.4 Million Current amount exceeds expected collections for fiscal year

By Aurea Gerundio-Dizon

KOROR, Palau (Island Times, Aug. 14, 2012) – As of August 10, actual local revenue collected by the national government of Palau is already $43.4 million.

President Toribiong yesterday expressed hope that the collection will further exceed the projected revenue, considering that there is still more than a month left before the fiscal year ends on September 30.

Local revenue projection for FY 2012 was increased to $42.128 million, following the passage of the supplemental budget. This revenue projection does not include Green Fee collection.

In the FY 2012 3rd Quarter Financial Report released July 30, not yet including the supplemental budget, actual collections at the end of the quarter was already $32,398,571 or 85 percent of the projected revenue (that was still $37.994 million)

Collections include that of utilities (120 percent of the projected amount), tax revenue (84 percent), licenses and fees (75 percent), postal (62 percent), court fees and fines (78 percent) and service fees (99 percent).

But on the schedule of accounts payable, encumbrances and accounts receivable, the report disclosed that total accounts payable as of June 30 amounted to $15,912,234. Accounts payables are obligations requiring cash payments and will be paid accordingly based on Cash Management Policy.

The total encumbrances as of end of 3rd Quarter amounted to $19,038,009. Encumbrances are funds reserved for goods or services which have not been delivered or rendered.

The report explains that the large encumbrance amount reflects the total estimated costs of numerous Republic of China (Taiwan) projects, U.S. Federal grants and Capital Improvement Program (CIP) for airport upgrade, several road construction and other stimulus projects – all contracted out to various construction companies. Encumbrances will reportedly be liquidated and payments are processed based on the completion of the projects and submission of required documents.

On accounts receivable, it amounted to $14,117,184 as of June 30. A total of $12,776,104 of that is accounts receivable for the national hospital.

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