Trust Office profits inch lower
The Public Trust Office’s net profit has dropped slightly to reach $517,842 for the 2020 fiscal year.
The year prior, the office generated a net profit of $436,874, according to an annual report for covering the year to June 2020.
”Total funds invested with [the] Unit Trust of Samoa (U.T.O.S.) as at 30 June 2019 was $7,019,259 tala compared to $7,580,484 tala for the ﬁnancial year ended 30, June 2020,” the report stated.
“The increase in U.T.O.S. investment was mainly due to the additional units of 231,280 purchased with U.T.O.S. during the ﬁnancial year valued at $380,865 as well as the increase in the fair value unit price of $1.63 as at 30 June 2019 to $1.68 as at 30 June 2020.”
Net loans during the period under review amounted to $285,594; an annual decrease from the year prior’s $282,985.
“The increase in the net value by $2,609 tala was due to adjustments to the reserve for doubtful debts during the ﬁnancial year,” the report said.
“The reserve for doubtful debts of $1,184,353 tala as at 30 June 2020 has decreased from $1,233,944 tala in the previous year.
“The Ofﬁce continues to recover the outstanding amount to loans totaling $1469,947 tala.
”The budgeted income for the twelve month period of $672,800 tala was achieved by $774,850 tala given the actual income of $1,447,650 tala for the ﬁnancial year ending 30 June 2020.
”The Ofﬁce’s total actual expenditure of $1,010,776 million was $405,154 tala less than the budgeted amount of $1,415,930 million and therefore reﬂecting good controls.
“The overall net proﬁt for the ﬁnancial year in report is approximately $436,874 tala (actual income of $1,447,650 tala less actual expenditure of $1,010,776 tala).”
The report says the office’s regular monitoring and follow ups helped it recoup outstanding loans, with legal proceedings and mediation with creditors as a last resort.
But loans did not provide an income stream for the party during the financial year.
“There was no income generated from interest earned on loans for the ﬁnancial year ended 30, June 2020 in contrast to interest earned on loans amounting to $1,082 tala in the previous year,” the report said.
“This was due to cessation of interest charged on outstanding loan accounts during the ﬁnancial year in report.”
The total number of estate ﬁles under the office’s administration at the beginning of the ﬁnancial year stood at 489.
The office received instructions for administering an additional 35 new estates with one old estate ﬁle also reopened; a total of 38 estate cases were ﬁnalised during the ﬁnancial year.
“As at 30 June 2020, the total number of estates was 487,” the report said.
”At the beginning of the ﬁnancial period, the total cash value of funds belonging to estates was approximately $649,877 tala.
“The income earned by the Estates and Trusts Section during the ﬁnancial period of $591,903 tala exceeded its budgeted target of $573,000 tala.
“At the end of the ﬁnancial year, total funds belonging to estates amounted to $1,960,852 tala. This increase in total estate funds was mainly due to the receipt of sale proceeds for two estate properties within the ﬁnancial year.”
The report says the ofﬁce continues to prioritise its work on estates administration as a core function.
A total of 1,243 wills were recorded by the ofﬁce at the beginning of the ﬁnancial year.
“Thirty ﬁve (35) new Wills were prepared and registered during the year, making a total of 1,278 Wills at the close of the ﬁnancial year,” the report said.
“A total of six Wills were amended during the ﬁnancial year.”