Pacific Islands Forum
Fisheries Agency
Financial statements for the year
ended 30 June 2021
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Table of contents
Page
Director General’s report 1-2
Director General’s declaration 3
Independent auditor’s report 4-5
Statement of financial performance 6
Statement of financial position 7
Statement of changes in equity 8
Statement of cash flows 9
Statement of comparison of budget and actual amounts 10
Notes to the financial statements 11 - 42
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Director General’s report
The Director General of Pacific Islands Forum Fisheries Secretariat (“the Secretariat”) is pleased to present
the report on the financial statements of the Secretariat which comprises the General Fund, Trust Fund,
Housing Fund and Vessel Register Fund for the financial year ended 30 June 2021. In compliance with the
provisions of the Secretariat’s Financial Regulations, the Director General reports as follows:
Executive Management
The executive management who were in office at the date of this report and at any time during the financial
year and up until the date the financial statements were authorised and signed are as follows:
Name Position
Dr. Seini Manumatavai Tupou Roosen Director General
Mr. Matthew Bramston Hooper Deputy Director General
Dr. Wetjens Dimmlich Director of Fisheries Management
Dr. Chris Reid Director of Fisheries Development
Mr. Allan Rahari Director of Fisheries Operations
Mr. Mesake Nawari Seavula Director of Corporate Services
Dr. Pio Manoa Legal Counsel
Principal activities
Reporting entity
The Secretariat was established in August 1979 by an international convention – the South Pacific Forum
Fisheries Secretariat Convention. The Secretariat’s current membership comprises a total of seventeen
members: sixteen countries and one territory. The Secretariat was established to help member countries and
territory maximise benefits from the sustainable use of the fisheries resources within their exclusive economic
zone.
As stipulated in the Convention, the functions and responsibilities of the Secretariat are to:
• collect, analyse, evaluate and disseminate to Parties relevant statistical and biological information
with respect to the living marine resources of the region and in particular the highly migratory species;
• collect and disseminate to Parties relevant information concerning management procedures,
legislation and agreements adopted by other countries both within and beyond the region;
• collect and disseminate to Parties relevant information on prices, shipping, processing and marketing
of fish and fish products;
• provide, on request, to any Party technical advice and information, assistance in the development of
fisheries policies and negotiations, and assistance in the issue of licences, the collection of fees or in
matters pertaining to surveillance and enforcement;
• seek to establish working arrangements with relevant regional and international organisations,
particularly the South Pacific Commission; and
• undertake such other functions as the Committee may decide.
The new FFA Strategic Plan 2020-2025 (“SP2025”) was endorsed in June 2019 and came into effect on the
1st of July 2020. The Strategic Plan covers the work of the Forum Fisheries Committee (FFC, the FFA
governing council) and the Secretariat. Implementation of the SP2025 requires changes to the Secretariat
internally and with close engagement with its members. The implementation of the SP2025 is still ongoing
and should be fully functioning by the end of the next financial year.
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PACIFIC ISLANDS FORUM FISHERIES AGENCY
Director General’s report - continued
Principle activities - continued
Vision Statement
The joint aim of members of the Forum Fisheries Secretariat is captured in its Vision Statement, which states:
“Our people enjoying the greatest possible social and economic benefits from the sustainable use of
offshore fisheries resources.”
FFA’s Corporate Mission
For staff and management at the Secretariat’s regional headquarters, their work is guided by the Corporate
Mission Statement, which states the mission of the organization as:
“Empowering FFA Members to take collective and national action for the sustainable use of offshore
fisheries resources.”
During the financial year there was no significant change in the principal activities or state of affairs of the
Secretariat other than that referred to in the financial statements or notes thereto.
Review of operations
The Secretariat reported a net deficit of US$730,119 (2020: US$610,332 surplus) for the year.
Independent audit report
The financial statements have been audited by KPMG Fiji and should be read in conjunction with the
independent audit report on page 4 to 6. Audit fees and non-audit fees are disclosed at Note 9.
Other information
Pacific Islands Forum Fisheries Secretariat’s registered office and its principal place of business are as
follows:
1 FFA Road
PO Box 629
Honiara
Solomon Islands
Tel: (677) 21124
Fax: (677) 23995/20092
Website: http//www.ffa.int
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PACIFIC ISLANDS FORUM FISHERIES AGENCY
Director General’s declaration
The Director General declares that:
(a) the accompanying statement of financial performance of Pacific Islands Forum Fisheries Agency (‘the
Secretariat’) is drawn up so as to give a true and fair view of the results of the Secretariat for the year
ended 30 June 2021;
(b) the accompanying statement of financial position of the Secretariat is drawn up so as to give a true and
fair view of the state of affairs of the Secretariat as at 30 June 2021;
(c) the accompanying statement of changes in equity of the Secretariat is drawn up so as to give a true and
fair view of the changes in equity of the Secretariat for the year ended 30 June 2021;
(d) the accompanying statement of cash flows of the Secretariat is drawn up so as to give a true and fair
view of the cash flows of the Secretariat for the year ended 30 June 2021;
(e) the accompanying statement of comparison of budget and actual amount of the Secretariat is drawn up
so as to give a true and fair view of the variance reporting between budget and actuals for the year ended
30 June 2021; and
(f) the financial statements fairly present the financial position of the Secretariat and its financial
performance and cash flows as at the end of 30 June 2021; the financial statements have been prepared
in accordance with the requirements of the Financial Regulations and International Public Sector
Accounting Standards (IPSAS).
________________________________
Dr. Seini Manumatavai Tupou Roosen
Director General
Honiara, 10 May 2022.
3
kpmg
Independent Auditors’ Report
To the Members of Pacific Islands Forum Fisheries Agency
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Pacific Islands Forum Fisheries Agency (“the
Agency”), which comprise the statement of financial position as at 30 June 2021, the
statements of financial performance, changes in equity, cash flows and statement of
comparison of budget and actual amounts for the year then ended, and notes, comprising
significant accounting policies and other explanatory information as set out in notes 1 to
28.
In our opinion, the accompanying financial statements give a true and fair view of the
financial position of the Agency as at 30 June 2021, and of its financial performance and
its cash flows for the year then ended in accordance with International Public Sector
Accounting Standard (IPSASs) and the Agency Financial Regulation respectively.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs).
Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Agency in accordance with International Ethics Standards Board for
Accountants International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code) and the ethical requirements that
are relevant to our audit of the financial statements and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA Code. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Other information
Management is responsible for the other information. The other information comprises the
information included in the Director General’s report, but does not include the financial
statements and our auditors’ report thereon. Our opinion on the financial statements does
not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and give a true and fair of the financial
statements in accordance with IPSAS and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Agency’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Agency or to cease operations, or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Agency’s financial
reporting process.
4
kpmg
Independent Auditors’ Report
To the Members of Pacific Islands Forum Fisheries Agency
Report on the Audit of the Financial Statements (continued)
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditors’ report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs will
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Agency’s
internal control.
Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
Conclude on the appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Agency’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in
our auditors’ report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditors’ report.
However, future events or conditions may cause the Agency to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
KPMG Suva, Fiji
10 May, 2022
KPMG, a Fiji partnership, is part of the KPMG global organisation of
independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee.
5
Document classification: KPMG confidential
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Statement of financial performance
For the year ended 30 June 2021
2021 2020
Note
US$ US$
Income
Member country contributions 6 2,050,416 2,050,416
Donor funds 7 9,875,590 10,973,012
Vessel registration fees 3,450,590 3,769,409
Housing rental receipts 279,342 277,133
Interest received 3,005 195,937
Program support and cost recovery 570,200 1,210,328
Australia’s project development fund donation 156,250 156,250
US Treaty levy 315,000 315,000
Vessel levy 202,965 273,008
Benefit from property, plant and equipment 333,672 333,350
Other income 190,928 77,336
Total income 17,427,958 19,631,179
Expenditures
Output 1: High Level Advice 8 3,782,388 3,051,115
Output 2: Fisheries Management 8 2,774,571 2,118,260
Output 3: Fisheries Development 8 2,351,956 4,375,598
Output 4: Fisheries Operations 8 4,119,389 4,490,907
Output 5: Corporate Services 8 5,129,773 4,984,967
Total expenditures 18,158,077 19,020,847
(Deficit)/surplus for the year (730,119) 610,332
The above statement of financial performance should be read in conjunction with the notes to the financial
statements.
6
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Statement of financial position
As at 30 June 2021
2021 2020
Notes
US$ US$
Assets
Current assets
Cash and cash equivalents 23(a) 22,293,690 16,801,067
Receivables from exchange transactions 11 1,344,300 991,670
Receivables from non-exchange transactions 12 28,017 191,918
Financial assets – investment deposits 14 64,918 1,529,538
Prepayments 13 86,812 84,049
Total current assets 23,817,737 19,598,242
Non-current assets
Property, plant and equipment 15 8,023,184 6,354,356
Prepayments 13 32,125 80,778
Total non-current assets 8,055,309 6,435,134
Total assets 31,873,046 26,033,376
Liabilities
Current liabilities
Payables and accruals from exchange transactions 16 3,188,609 4,255,957
Payables and accruals from non-exchange transactions 17 17,871,234 12,312,147
Employee benefits 18 1,086,543 881,259
Deferred income liability 19 329,398 329,398
Total current liabilities 22,475,784 17,778,762
Non-current liabilities
Employee benefits 18 169,317 168,556
Deferred income liability 19 5,656,378 5,922,082
Total non-current liabilities 5,825,695 6,090,638
Total liabilities 28,301,479 23,869,400
Net assets 3,571,567 2,163,976
Equity
Accumulated surpluses 1,433,857 2,163,976
Revaluation reserves 2,137,710 -
Total equity 3,571,567 2,163,976
Signed in accordance with the Financial Regulation of the Secretariat:
________________________________
Dr. Seini Manumatavai Tupou Roosen
Director General
Honiara, 10 May 2022.
The above statement of financial position should be read in conjunction with the notes to the financial statements.
7
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Statement of changes in equity
For the year ended 30 June 2021
Revaluation Accumulated
Total
Notes reserves surpluses
US$ US$ US$
Balance at 1 July 2019 - 1,553,644 1,553,644
Surplus for the year - 610,332 610,332
Balance at 30 June 2020 - 2,163,976 2,163,976
Deficit for the year - (730,119) (730,119)
Revaluation gains 2,137,710 - 2,137,710
Balance at 30 June 2021 2,137,710 1,433,857 3,571,567
The above statement of changes in equity should be read in conjunction with the notes to the financial
statements.
8
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Statement of cash flows
For the year ended 30 June 2021
Notes 2021 2020
US$ US$
Cash flows from Operating Activities
Receipts from member countries contribution 6 2,201,372 1,934,956
Donor funding 14,852,869 8,401,321
Receipts from vessel registration 3,187,888 3,626,626
Rental receipts 304,033 255,441
Receipts from program support 601,079 1,000,979
Other receipts 735,025 996,892
Inflows from receipts 21,882,266 16,216,215
Payments for staff costs (7,765,222) (12,083,482)
Payments for project costs (8,434,068) (5,249,499)
Payments for housing fund costs (1,564,672) (1,524,715)
Outflows from payments (17,763,962) (18,857,696)
Net cash (used in)/generated by Operating Activities 23(b) 4,118,304 (2,641,481)
Cash flows from Investing Activities
Interest received 18,350 203,999
Redemption of term deposits 1,464,620 466,154
Payments for property, plant and equipment (109,050) (96,572)
Proceeds from disposal of assets 399 7,451
Net cash generated by/(used in) Investing Activities 1,374,319 581,032
Net (decrease)/increase in cash and cash equivalents 5,492,623 (2,060,449)
Cash and cash equivalents at the beginning of the year 16,801,067 18,861,516
Cash and cash equivalents at the end of the year 23(a) 22,293,690 16,801,067
The above statement of cash flows should be read in conjunction with the notes to the financial statements.
9
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Statement of comparison of budget and actual amounts
For the year ended 30 June 2021
BUDGET ACTUALS VARIANCE
Revised Revised Revised Approved Budget
Approved Approved less Actual
2021 2020 2021 2020 2021 2020
US$ US$ US$ US$ US$ US$
Income
Member country contributions 2,050,416 2,050,416 2,050,416 2,050,416 - -
Donor funds 17,533,996 20,922,532 9,875,590 10,973,012 7,658,406 9,949,520
Vessel registration fees 3,896,298 3,719,778 3,450,590 3,769,409 445,708 (49,631)
Housing rental receipts 1,331,877 1,257,951 279,342 277,133 1,052,535 980,818
Interest received 24,500 119,000 3,005 195,937 21,495 (76,937)
Program support and cost recovery 1,912,985 1,218,195 570,200 1,210,328 1,342,785 7,867
Australia’s project development fund donation 156,250 156,250 156,250 156,250 - -
US Treaty levy 315,000 315,000 315,000 315,000 - -
Vessel levy 237,000 230,700 202,965 273,008 34,035 (42,308)
Benefit derived from property, plant and equipment 319,743 249,243 335,121 333,350 (13,929) (84,107)
Other income 128,078 111,068 189,479 77,336 (62,850) 33,732
Total income 27,906,143 30,350,133 17,427,958 19,631,179 10,478,185 10,718,954
Expenditures
Output 1: High Level Advice 4,911,026 5,429,623 3,782,388 3,051,115 1,128,638 2,378,508
Output 2: Fisheries Management 5,402,476 6,778,509 2,774,571 2,118,260 2,627,905 4,660,249
Output 3: Fisheries Development 5,845,148 7,613,548 2,351,956 4,375,598 3,493,192 3,237,950
Output 4: Fisheries Operations 5,932,908 5,231,489 4,119,389 4,490,907 1,813,519 740,582
Output 5: Corporate Services 5,814,585 5,296,964 5,129,773 4,984,967 684,813 311,997
Total expenditures 27,906,143 30,350,133 18,158,077 19,020,847 9,748,066 11,329,286
(Deficit)/surplus - - (730,119) 610,332 730,119 (610,332)
The above statement of comparison of budget and actual amounts should be read in conjunction with the notes to the financial statements.
10
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021
1. General information
The Pacific Islands Forum Fisheries Agency (“the Secretariat”) was established in August 1979 to support and
enable members to achieve sustainable fisheries and the highest levels of social and economic benefit in
harmony with the broader environment.
The Secretariat’s headquarters is located in Honiara, Solomon Islands. There are seventeen members
comprising of Australia, Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru,
New Zealand, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tokelau, Tuvalu, and
Vanuatu.
The address of its registered office and principal place of business are disclosed in the Director General’s
report.
10
The financial statements were authorised for issue by the Director General on_____May 2022.
2. Significant accounting policies
2.1 Statement of compliance and basis of preparation
The financial statements of the Secretariat have been prepared on an accrual basis of accounting in
accordance with International Public Sector Accounting Standards (IPSAS) using the historical cost convention
and does not consider changes in money value except where stated otherwise. Historical cost is generally
based on the fair value of the consideration given in exchange for assets.
The financial statements have been prepared on a going concern basis, and the accounting policies have been
applied consistently throughout the year.
2.2 New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning on or after 1 January 2021 with early adoption permitted but the Secretariat has not applied them in
preparing these financial statements. None of these are expected to have a significant effect on the financial
statements of the Secretariat, except for the following:
Topic Key Requirements Effective Date
IPSAS 41- Financial The standard partly replaces existing guidance in IPSAS 29. Periods beginning on
Instruments IPSAS 41 includes revised guidance on the classification and or after 1 January
measurement of financial instruments, including a new 2023.
expected credit loss model for calculating impairment of
financial assets. The existing guidance on recognition and
derecognition of financial instruments in IPSAS 29 had been
carried forward to IPSAS 41.
IPSAS 42- Social The standard provides guidance on accounting for social Periods beginning on
Benefits benefits expenditure. It defines social benefits as cash or after 1 January
transfers paid to specific individuals and/or households to 2023
mitigate the effect of social risk. Specific examples include
state retirement benefits, disability benefits, income support
and unemployment benefits. The new standard requires an
entity to recognize an expense and a liability for the next
social benefit payment.
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PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 - continued
2. Significant accounting policies - continued
2.3 Foreign currencies
Items included in the financial statements of the Secretariat are measured using the currency of the primary
economic environment in which the Secretariat operates (“the functional currency”). Unless stated otherwise,
these financial statements are presented in USD, which is the Secretariat’s functional and presentation
currency. Except as otherwise indicated, financial information presented in USD has been rounded off to
nearest USD.
Transactions in currencies other than the Secretariat’s functional currency are recognised at the rates of
exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items
denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items
carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the
date when the fair value was determined. Non-monetary items in foreign currencies that are measured at
historical cost are translated at the exchange rate in effect at the date of transaction.
Exchange differences are recognised in statement of financial performance.
2.4 Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank, cash in hand and
short-term deposits with an original maturity of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash on hand, cash at
bank and term deposits with original maturity less than 3 months.
2.5 Financial assets
Financial assets are classified by the Secretariat into the following categories: ‘held-to-maturity’ investments
and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and
is determined at the time of initial recognition.
The Secretariat does not have any financial instruments classed as FVTPL and/or AFS.
Held-to-maturity investments
Term deposits with fixed maturity dates that the Secretariat has the positive intent and ability to hold to maturity
are classified as held-to-maturity investments. Held-to-maturity investments are measured at amortised cost
using the effective interest method less any impairment, with revenue recognised on an effective yield basis.
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active
market. Such assets are recognised initially at fair value plus directly attributable transaction costs. Subsequent
to initial recognition, loans and receivables are measured at amortised cost using the effective interest method
less any impairment losses.
Loans and receivables comprise cash and cash equivalents, trade and other receivables and term deposits.
Cash and cash equivalents comprise of cash on hand and cash at bank and short-term deposits with a maturity
of three months or less.
Derecognition of financial assets
The Secretariat derecognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity. If the Secretariat neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Secretariat recognises its retained interest in the
asset and an associated liability for amounts it may have to pay. If the Secretariat retains substantially all the
risks and rewards of ownership of a transferred financial asset, the Secretariat continues to recognise the
financial asset and also recognises a collateralised borrowing for the proceeds received.
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PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 - continued
2. Significant accounting policies - continued
2.6 Financial liabilities
Other financial liabilities
The Secretariat recognises all other financial liabilities on trade date at which the Secretariat becomes a party
to the contractual provision of the instrument.
Other financial liabilities are initially measured at fair value, net of transaction costs. Other financial liabilities
are subsequently measured at amortised cost using the effective interest method. Other financial liabilities
comprise trade and other payables.
Derecognition of financial liabilities
The Secretariat derecognises financial liabilities when, and only when, the Secretariat’s obligations are
discharged, cancelled or they expire.
2.7 Property, plant and equipment
Initial recognition and subsequent expenditure
Property, plant and equipment is measured initially at cost. Cost includes expenditure that is directly attributable
to the acquisition of the items. The cost of an item of property, plant and equipment is recognised only when it
is probable that future economic benefit or service potential associated with the item will flow to the Secretariat,
and if the item’s cost or fair value can be measured reliably.
Where an asset is acquired in a non-exchange transaction for nil or nominal consideration the asset is initially
measured at its fair value.
Measurement of subsequent to initial recognition
Subsequent to initial recognition, property, plant and equipment are measured using either the cost model or
the revaluation model, as described below:
Land and buildings are measured at fair value, less accumulated depreciation on leasehold land and buildings
and any impairment losses recognised after the date of the revaluation. The fair value of land and buildings is
their market value as determined by a registered valuer.
Revaluation is performed on a class-by-class basis. If an item of property, plant and equipment is revalued,
the entire class to which the asset belongs is revalued. Valuations are performed with sufficient frequency to
ensure that the fair value of a revalued asset does not differ materially from its carrying amount. The valuation
cycle for revalued asset classes is normally three to five years.
A revaluation surplus is recorded in other comprehensive revenue and expense and credited to the asset
revaluation reserve in net assets/equity for all assets. However, to the extent that it reverses a revaluation
deficit of the same class of asset previously recognised in surplus or deficit, the increase is recognised in
surplus or deficit. A revaluation deficit is recognised in the surplus or deficit, except to the extent that it offsets
an existing surplus on the same asset class recognized in the asset revaluation reserve.
Plant and equipment are measured at cost, net of accumulated depreciation and impairment losses, if any.
Depreciation
Depreciation is charged on a straight-line basis over the useful life of the asset. Depreciation is charged at
rates calculated to allocate the cost or valuation of the asset less any estimated residual value over its
remaining useful life:
• Leasehold land 18-31 years
• Building 40 years
• Plant, equipment and furniture 3-5 years
• Motor vehicles 5 years
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PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 - continued
2. Significant accounting policies - continued
2.7 Property, plant and equipment - continued
Depreciation – continued
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate,
at each financial year end.
For revalued assets, any accumulated depreciation as at the revaluation date is eliminated against the gross
carrying amounts of the assets and the net amounts are restated to the revalued amounts of the assets.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable amount.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits or service potential are expected from its use or disposal. Gains and losses on disposals are
determined by comparing proceeds with the carrying amount. These are included in statement of financial
performance. Upon disposal or derecognition, any revaluation reserve relating to the particular asset being
sold is transferred to accumulated comprehensive revenue and expense.
2.8 Employee benefits
Wages, salaries and annual leave
Liabilities for wages and salaries (including non-monetary benefits) and annual leave are recognised in
statement of financial performance during the year in which the employee rendered the related services, and
are generally expected to be settled within twelve months of the reporting date. The liabilities for these short-
term benefits are measured at the amounts expected to be paid when the liabilities are settled. These liabilities
are not discounted for the time value of money and are presented as current liability.
Retention
Employees of the Secretariat become eligible for retention after completion of their contract. The liability for
retention is recognised and measured as at year end in respect of services provided by employees up to the
reporting date depending on their signed contract. Contracted employees are entitled to 7% retention per year
of service to the Secretariat. Gains and losses on the retention are fully accounted for in the statement of
financial performance.
Retirement benefit costs
Contributions to defined contribution retirement benefit plans are recognised as an expense when employees
have rendered service entitling them to the contributions.
2.9 Equity
Equity is the member countries’ interest in the Secretariat, measured as the difference between total assets
and total liabilities. Equity is made up of accumulated comprehensive revenue and expense and revaluation
reserve.
Accumulated surpluses
Accumulated comprehensive revenue and expense is the Secretariat’s accumulated surplus or deficit since
the formation of the Secretariat.
Revaluation Reserve
Revaluation reserves include accumulated gains (losses) from revaluation of the Secretariat’s property, plant
and equipment.
The Secretariat revalues specific assets, land and buildings, based on an independent appraisal of the market
value of the assets. Revaluations are maintained as a separate reserve until such time the asset is
derecognized. When an item of property, plant and equipment is sold or otherwise disposed of, the respective
cumulative revaluation reserve is transferred directly to the other comprehensive income.
14
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 - continued
2. Significant accounting policies - continued
2.10 Revenue
Revenue is recognised to the extent that it is probable that the economic benefits or service potential will flow
to the Secretariat and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue is measured at the fair value of the consideration received or receivable, considering contractually
defined terms of payment.
The specific recognition criteria described below must also be met before revenue is recognised.
Revenue from non-exchange transactions:
Member country contribution
Member country contribution revenue is recognised on an accrual basis in accordance with the substance of
the relevant agreement (provided that it is probable that the economic benefits will flow to the Secretariat and
the amount of revenue can be measured reliably) and by reference to assessed computations approved at
annual Pacific Islands Forum Fisheries Committee (FFC) meeting.
Contributions from member countries received in advance for the next financial year are recognised as advance
funds.
Donor funds
Donor funds are assistance by the governments or organisations in the form of transfers of resources to the
Secretariat in return for past or future compliance with certain conditions relating to the operating activities of
the Secretariat. Donor funds are used only for the purposes specified by the donors and shall be accepted only
if the purposes of such contributions from member governments, private organizations or other donors are
consistent with the policies of the Secretariat.
Restricted grants or project funding are only recognised as income upon the fulfilment of donor-imposed
conditions whereas unrestricted grants or project funding are recognised upon receipt of the confirmed
commitment.
Donor funds whose primary condition is that the Secretariat should purchase or acquire long-term assets are
recognised as deferred revenue in the statement of financial position and recognised as income on a
systematic and rational basis over the useful lives of the related assets.
Donor funds are recognised as income over the periods necessary to match them with the related costs which
they are intended to compensate, on a systematic basis. Donor funds that are receivable as compensation for
expenses or deficits already incurred or for the purpose of giving immediate financial support with no future
related costs are recognised as income of the period in which it becomes receivable.
Donor funds received during the financial year that are not spent by the end of that financial year are recognised
as advance donor funds and carried forward to the next financial year.
Donations
Donations are funds donated to the Secretariat by member countries. Such donations do not have specific
conditions and as such the donations are recorded as revenue in the statement of financial performance when
received.
Observer levy
Observer levy are charges imposed on vessels by the Secretariat to assist with its placement and training of
observers on vessels and the observer levy received are recorded as revenue in the statement of financial
performance.
Observer levy received during the financial year that are not spent by the end of that financial year are treated
as deferred income and carried forward to the next financial year.
15
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 - continued
2. Significant accounting policies - continued
2.10 Revenue - continued
Revenue from exchange transactions:
Vessel registration fees
Vessel registration fees are often paid in advance and revenue is recognised when the license or the
registration period falls within the financial year.
Vessel registration fees received prior to the start of the registration period it relates to are treated as advanced
funds.
Vessel levy
Vessel levy are charges imposed on vessels by the Secretariat to assist with its operations. Vessel levy are
often paid in advance and revenue is recognised when the license or the registration period falls within the
financial year.
Vessel levy received in the current period but relate to the next financial year are treated as advanced funds.
Housing rental income
Housing rental income is recognised on a monthly basis over the term of the tenancy agreement. Rental income
is accrued for properties rented out to external parties, especially to other related parties such as US Treaty
and employees of the Secretariat. Rental income also includes rental income received to pay landlords on
behalf of the employees for the other related parties.
Interest revenue
Interest revenue is recognised when it is probable that the economic benefits will flow to the Secretariat and
the amount of revenue can be measured reliably. Interest revenue is accrued on a timely basis, by reference
to the principal outstanding and at the effective interest rate applicable. Effective interest rate is the rate that
exactly discounts the estimated future cash payments or receipts over the expected life of the financial
instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
Interest income is included in the statement of financial performance.
Program support and cost recovery
Revenue from program support is recognised based on the rate agreed in Memorandum of Agreements
(MOUs) between donors and the Secretariat for which a management fee is charged on funds received. The
management fee is a percentage applied on funds received and varies from donor to donor. Revenue is
recognised on accrual basis.
Cost recovery revenue is recognised by reference to assessed computations approved at annual conference.
The approved cost recovery is calculated 66% of total staff costs and it is recognised on an accrual basis.
Other income
Other income includes fees from hire of conference centre, office rental, foreign exchange gains or losses,
realised gains and losses on the sale of assets held at cost, reimbursement of medical fees from insurance
provider, refuse and tea money received from employees.
16
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 - continued
2. Significant accounting policies – continued
2.11 Expense Recognition
Goods and Services
Expenses are recognised when goods and services are delivered or rendered and accepted by the Secretariat.
Project expenses where the Secretariat is the principal implementer (manager in a project) and/or engages
sub-recipients to implement specific projects activities on the Secretariat’s behalf through secondary
contractual arrangements, advances to these organisations are recognised as expense upon receipt of
supporting documentation confirming acceptable expenditure and the receipt of related goods or services as
per donor requirements.
For direct implementation of projects and programs by the Secretariat, expenses are recognised when goods
and services have been received by the Secretariat.
2.12 Income tax and other taxes
The Secretariat is exempt from corporate income tax, goods tax, duty tax and sales tax obligations under
Section 11 of the Solomon Islands Diplomatic Privileges and Immunities Act. The Secretariat is only liable for
pay-as-you-earn (PAYE) tax on local employees and withholding taxes under Solomon Islands Income Tax
Act.
2.13 Impairment of non-financial assets
At the end of each reporting period, the Secretariat reviews the carrying amounts of its tangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
Secretariat estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where
a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are allocated to the smallest company of cash-generating
units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than it’s carrying amount,
the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment
loss is recognised immediately in statement of financial performance, unless the relevant asset is carried at a
revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit)
is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been determined had no impairment loss been recognised for
the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately
in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase.
2.14 Comparatives
Where necessary comparatives have been changed to conform to the presentation in the current financial year.
17
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 - continued
2. Significant accounting policies - continued
2.15 Budget information
The budget figures presented in these financial statements are those included in the Secretariat’s 2020/2021
Annual Work Program and Budget (AWPB). The Annual Work Program and Budget figures are approved by
the Pacific Islands Forum Fisheries Committee (“FFC”) immediately prior to the beginning of each financial
year following a period of consultation with the members as part of the AWPB processes. The budget figures
do include any additional expenditure subsequently approved by the FFC as part of the approved Revised
Budget. The AWPB figures have been prepared in accordance with the Secretariat’s Financial Regulation and
are consistent with the above accounting policies adopted by the FFC for the preparation of these financial
statements. Explanation of major variances between actual results and budgeted figures is provided in Note
26.
2.16 Provisions
A provision is recognised if, as a result of a past event, the Secretariat has a present legal or constructive
obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required
to settle the obligation. Provisions are measured at the present value of the expenses expected to be required
to settle the obligation.
2.17 Contingencies
A contingent asset is disclosed when an inflow of economic benefits or service potential is probable. If it has
become virtually certain that an asset is no longer contingent and that its value can be measured reliably, the
asset and the related revenue are recognised in the year in which the change occurs.
A contingent liability is disclosed unless the possibility that it will be realised. If it becomes probable that a
contingent liability will be realised, a provision is recognised in the year in which the change of probability
occurs.
2.18 Offsetting of income and expenses
Income and expenses are not offset unless required or permitted by an accounting standard. This generally
arises where gains and losses arise from similar transactions.
2.19 Offsetting assets and liabilities
Assets and liabilities are offset and the net amount reported in the statement of financial position only where
there is a current enforceable legal right to offset the asset and liability and intention to settle on a net basis or
to realise the asset and settle liability simultaneously.
3.1 Critical judgements in applying accounting policies
In the application of the Secretariat’s accounting policies, which are described in note 2, management is
required to make judgements, estimates and assumptions that affect the reported amounts of revenue,
expenses, carrying amounts of assets and liabilities that are not readily apparent from other sources, and the
accompanying disclosures. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the judgements, apart from those involving estimations (see 3.2 below), that the management
has made in the process of applying the Secretariat’s accounting policies and that have the most significant
effect on the amounts recognised in the financial statements.
18
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
3. Significant accounting judgements, estimates and assumptions - continued
3.1 Critical judgements in applying accounting policies - continued
• Revenue recognition – refer note 2.10.
• Property, plant and equipment – refer to note 2.7.
• Impairment of non-financial assets – refer note 2.13.
• Provision of employee benefits – refer note 2.8.
• Impairment of receivables
• Provision for ineligible donor funds spent
3.2 Critical accounting estimates and assumptions
In preparing these financial statements, estimates and assumptions have been made concerning the future.
The Secretariat based its assumptions and estimates on parameters available when the financial statements
were prepared. Existing circumstances and assumptions about future developments, however, may change
due to market changes or circumstances arising beyond the control of the Secretariat. Such changes are
reflected in the assumptions when they occur.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of financial position
cannot be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the discounted cash flow (DCF) model. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgement is required in
establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments. See Note 2.4 and 2.5 for further disclosures.
Revaluation of leasehold land and buildings
The Secretariat measures land and buildings at revalued amounts with changes in fair value being recognised
in asset revaluation reserves. The Secretariat engaged an independent valuation specialist to assess fair value
as at 30 September 2020 for revalued land and buildings. Land and buildings were valued by reference to
market-based evidence, using comparable prices adjusted for specific market factors such as nature, location
and condition of the property. The key assumptions used to determine the fair value of these non-financial
assets and sensitivity analyses are provided in Note 15.
Impairment of non-financial assets – non-cash-generating assets
The Secretariat reviews and tests the carrying value of non-cash-generating assets (other than property, plant
and equipment measured using the revaluation model) when events or changes in circumstances suggest
that there may be a reduction in the future service potential that can reasonably be expected to be derived
from the asset. Where indicators of possible impairment are present, the Secretariat undertakes impairment
tests, which require the determination of the asset’s fair value less cost to sell and its recoverable service
amount. The asset’s fair value less costs to sell is based on available data from binding sales transactions,
conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing
of the asset. The estimation of these inputs into the calculation relies on the use of estimates and assumptions.
Any subsequent changes to the factors supporting these estimates and assumptions may have an impact on
the reported carrying amount of the related asset.
Useful lives and residual values
The useful lives and residual values of assets are assessed using the following indicators to inform potential
future use and value from disposal:
• The condition of the asset based on the assessment of experts employed by the Secretariat;
• The nature of the asset, its susceptibility and adaptability to changes in technology and processes;
• The nature of the processes in which the asset is deployed;
• Availability of funding to replace the asset; and
• Changes in the market in relation to the asset.
The estimated useful lives of the asset classes held by the Secretariat are listed in Note 2.7.
19
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
4. Capital management
For the purpose of the Secretariat’s capital management, the Secretariat’s capital is its equity, including
accumulated comprehensive revenue and expenses and all equity reserves attributable to the Secretariat.
Equity is represented by net assets. The Secretariat manages capital largely as a by-product of managing its
revenue, expenses, assets, liabilities and general financial dealings.
The Secretariat’s Financial Regulations requires the management of financial resources effectively, efficiently
and economically against high standards of accountability, fairness and transparency.
In order to achieve this overall objective, the Secretariat has to ensure that the expenditure needs identified in
the Secretariat’s Strategic Plan, Divisional Work Plans, Statement of Intent and Annual Work Program and
Budget are met in the manner set out in these plans. The Secretariat is required to make adequate and effective
provision to meet the expenditure needs identified in those plans. The factors that the Secretariat is required
to consider when determining the most appropriate sources of funding for each of its activities are set out in
the Financial Regulations and may also be reflected in various revenue and funding agreements. The
Secretariat monitors actual expenditure incurred against the new Strategic Plan 2020-2025 and Annual Work
Plan including through weekly and monthly reporting to the Senior Executive. The new Strategic Plan 2020-
2025 resulted in realignment of the Secretariat’s functions internally, including policies and processes, to meet
the objectives of the new Plan.
5. Segment reporting
Segment reporting is based upon the funding sources that form the Secretariat. This segmentation also
helps the organisation to set objectives and make decisions about the future allocation of resources to priority
areas.
Revenue and expense incurred by the Secretariat is allocated among the funding sources in accordance with
the approved and revised Budget. The Secretariat’s assets, liabilities and accumulated fund balances are
also allocated to the funding sources (see Note 27).
General Fund
General Fund are primarily assessed membership contributions, levied against each member country and
territory. These funds are separately tracked, and the Secretariat is free to use these funds as it sees fits. It
also includes voluntary contributions (such as Australia’s PDF shares), program support or management fees
from donors, cost recovery contributions from other funds, levies from UST and vessels and other
miscellaneous income such as interest income, income from disposal of assets and reimbursement of
medical bills.
Trust Fund
Trust Fund are funds received from donor organisations and member countries and above their statutory
payments under General Fund, for specific projects and purposes. The Secretariat is not free to use these
funds as it sees fit. Use of funds and financial reporting must be in line with donor requirements. The
Secretariat charges a project management fee that is accounted as program support in General Fund.
Housing Fund
Housing Fund generates revenue from managing the Secretariat’s residential properties, which are occupied
by the Secretariat’s staff. It also manages rental income received to pay landlords on behalf of the employees
for the other related parties. The Secretariat pays $13,000 of the assessed market rental to the Housing
Fund, while staff pay the balance of the rental.
VMS
VMS comprises of funds received from registration of vessels. These funds are separately tracked, and the
Secretariat is free to use these funds as it sees fits. It also includes miscellaneous income such as interest
income and income from medical reimbursements.
20
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
6. Member country contribution reconciliation
2021 2020
US$ US$
Member country:
Contributions received 2,201,373
1,934,955
Less:
Contribution arrears as at 1 July 132,103 19,686
Contributions received in advance (prepayment) 18,854 -
150,957 19,686
Add:
Contributions received in advance in prior year - 3,044
Contribution arrears as at 30 June - 132,103
- 135,147
Assessed contributions 2,050,416 2,050,416
MCC Assessed MCC MCC Assessed MCC MCC
arrears/ MCC received arrears/ MCC received arrears/
Member country (overpay) (overpay) (overpay)
Contribution
(MCC) 1 July 30 June 30 June 30 June 30 June 30 June 30 June
2020 2020 2020 2020 2021 2021 2021
US$ US$ US$ US$ US$ US$ US$
Australia - 693,653 693,653 - 693,653 693,653 -
Cook Islands - 32,458 32,458 - 32,458 32,458 -
Federated States of
4,889 57,657 62,546 - 57,657 57,657 -
Micronesia
Fiji 14,797 57,657 72,454 - 57,657 75,753 (18,097)
Kiribati - 45,032 - 45,032 45,032 90,064 -
Marshall Islands - 45,032 45,032 - 45,032 45,032 -
Nauru - 45,032 45,032 - 45,032 45,032 -
New Zealand - 693,653 693,653 - 693,653 693,653 -
Niue - 32,458 32,458 - 32,458 32,458 -
Palau - 45,032 45,032 - 45,032 45,032 -
Papua New Guinea - 57,657 57,657 - 57,657 57,657 -
Samoa - 32,458 32,458 - 32,458 32,458 -
Solomon Islands (3,044) 57,657 - 54,613 57,657 113,027 (757)
Tokelau - 32,458 32,458 - 32,458 32,458 -
Tonga - 45,032 45,032 - 45,032 45,032 -
Tuvalu - 32,458 - 32,458 32,458 64,916 -
Vanuatu - 45,032 45,032 - 45,032 45,032 -
Total 16,642 2,050,416 1,934,955 132,103 2,050,416 2,201,373 (18,854)
21
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
7. Donor funds income reconciliation
2021 2020
US$ US$
Total donor funds received 16,637,476 10,881,892
Add: donor funds receivable 28,017 59,815
Total funds received and receivable 16,665,493 10,941,707
Add: Carried forward funds from prior year 12,050,474 14,562,350
Less: MCC, program support and balance of funds payable to donor
(1,852,057) (2,480,570)
due to project closure
Total funds available 26,863,910 23,023,487
Less: Closing carried forward funds to next financial year (10,704,096) (11,908,902)
Less: Closing advance funds received for next financial year (6,284,224) (141,572)
Total Trust Fund income 9,875,590 10,973,013
Carry over Funds MCC/ Expenditures Carryover Funds MCC/ Expenditures Carryover
funds from received in program for FY2019/ funds to received in program for FY2020/ funds to
FY2018/ FY2019/ support/ 2020 FY2020/ FY2020/ support/ 2021 FY2021/
Donors 2019 2020 returned 2021 2021 returned 2022
funds to funds to
donor donor
US$ US$ US$ US$ US$ US$ US$ US$
Australia Department of
Foreign Affairs and Trade 3,960,118 - (902,254) (2,646,812) 411,052 7,383,124 (906,615) (2,685,247) 4,202,313
(DFAT) – Program funding
DFAT – Regional Workshop
46,595 - - (46,595) - - - - -
on Information Sharing (RSIS)
DFAT – Niue Treaty
120,756 327,613 (42,732) (177,342) 228,295 - - (172,070) 56,225
Subsidiary Agreement (NTSA)
DFAT – Gender Funding 69,500 102,876 (22,484) - 149,892 - - - 149,892
DFAT – MCS Funding - - - - - 376,474 - - 376,474
New Zealand Ministry of
Foreign Affairs and Trade 276,643 2,339,082 (693,653) (1,471,018) 451,054 5,216,415 (693,653) (2,077,753) 2,896,063
(NZMFAT) – Program funding
22
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
7. Donor funds income reconciliation - continued
Carry over Funds MCC/ Expenditures Carry over Funds MCC/ Expenditures Carry over
funds from received in program for FY2019/ funds to received in program for FY2020/ funds to
FY2018/ FY2019/ support/ 2020 FY2020/ FY2020/ support/ 2021 FY2021/
Donors 2019 2020 returned 2021 2021 returned 2022
funds to funds to
donor donor
US$ US$ US$ US$ US$ US$ US$ US$
NZMFAT – Fisheries Information
49,867 - - (40,792) 9,075 - (9,075)* - -
Management Systems (IMS)
NZMFAT – TeVaka Moana
29,036 - - (25,701) 3,335 - (3,335)* - -
(TVM)
NZMFAT – Input into Leaders’
36,987 - - (26,371) 10,616 - (10,616)* - -
Report (LP)
NZMFAT – Increasing
Employment and Economic
794,579 396,477 (104,166) (517,018) 569,872 444,002 (57,913) (421,774) 534,186
Benefits from Tuna Fisheries
(IEEB)
NZ MFAT - SP Tuna Longline 870,772 2,059,135 (121,953) (256,562) 2,551,392 - - (946,613) 1,604,779
NZ MFAT - Port Side Measures 884,167 - (57,961) (20,531) 805,675 - - (44,405) 761,269
NZ MFAT - Catch
1,086,481 - (84,874) (186,791) 814,816 - - (150,134) 664,682
Documentation System
NZ MFAT - Harvest Strategy
44,236 - (5,770) (12,233) 26,233 - - (788) 25,445
Management
NZ MFAT - Leadership Program - 63,831 - (63,831) - 63,745 - (63,745) -
NZ MFAT - Strategic Plan 1,000,500 - (130,500) (14,995) 855,005 - - (39,236) 815,770
NZ MFAT - Health Infrastructure 333,500 - (43,500) - 290,000 - - (196,185) 93,815
23
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
7. Donor funds income reconciliation - continued
Carry over Funds MCC/ Expenditures Carry over Funds MCC/ Expenditures Carry over
funds from received in program for FY2019/ funds to received in program for FY2020/ funds to
FY2018/ FY2019/ support/ 2020 FY2020/ FY2020/ support/ 2021 FY2021/
Donors 2019 2020 returned 2021 2021 returned 2022
funds to funds to
donor donor
US$ US$ US$ US$ US$ US$ US$ US$
Japan Promotion Fund (JPF)/
Overseas Fishery Co-operation 2,250,576 180,293 (27,228) (271,190) 2,132,451 429,733 (49,392) (267,715) 2,245,076
Foundation (OFCF)
Food & Agriculture Organisation
36,886 135,420 (17,663) (56,575) 98,068 43,970 (5,735) (49,480) 86,823
(FAO)
SciFish 25,792 - - - 25,792 - (25,792)* - -
SciCoFish 9,418 - - - 9,418 - (9,418)* - -
World Bank-IDA PROP 119,070 1,024,865 - (1,036,486) 107,449 264,718 - (340,371) 31,796
World Bank-GEF PROP 159,698 925,379 - (988,341) 96,736 84,153 - (87,971) 92,918
World Bank-GEF OPP 85,174 - (85,174) - - - - - -
OFMPII - FAO 22,419 747,118 (18,104) (726,480) 24,953 160,787 (3,877) (129,985) 51,878
OFMPII -UNDP/GEF - 342,230 - (231,402) 110,828 894,040 - (901,953) 102,915
OFMP3 - 50,000 - - 50,000 67,874 - (108,035) 9,840
KIOST 72,541 - - (72,541) - 131,985 (17,215) - 114,770
Swedish Fund 9,213 - - - 9,213 - (9,213)* - -
PEW 13,980 73,439 (8,015) (79,404) - 15,740 (2,740) (13,000) -
WCPFC 169,329 - - (55,056) 114,273 - - (29,503) 84,770
Taiwan 18,102 - - (16,800) 1,302 - - - 1,302
PEUMP 1,390,725 1,246,275 (64,813) (925,896) 1,646,292 - (47,465) (678,071) 920,755
Observer Cost Recovery Fund 279,955 927,674 - (875,843) 331,786 922,170 - (326,563) 927,393
Other 295,735 - (49,727) (130,406) 115,602 166,562 - (144,992) 137,172
Total 14,562,350 10,941,707 (2,480,570) (10,973,013) 12,050,474 16,665,493 (1,852,057) (9,875,590) 16,988,320
* These projects completed in 2021 and the funds unspent are yet to be acquitted to the donor as at period-end.
24
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
8. Expenditures by outputs
2021 2020
US$ US$
Output 1: High level advice
Staff costs and benefits 1 2,520,829 2,060,966
Project expenditures 1,261,559 990,149
3,782,388 3,051,115
Output 2: Fisheries management
Staff costs and benefits1 777,552 793,288
Project expenditures 1,997,019 1,324,972
2,774,571 2,118,260
Output 3: Fisheries development
Staff costs and benefits1 1,262,415 1,415,958
Project expenditures 1,089,541 2,959,640
2,351,956 4,375,598
Output 4: Fisheries operations
Staff costs and benefits1 2,723,430 1,738,914
Project expenditures 1,395,959 2,751,993
4,119,389 4,490,907
Output 5: Corporate services
Staff costs and benefits1 1,224,091 1,813,850
Operating expenditures 3,327,951 2,792,324
Depreciation 577,731 378,793
5,129,773 4,984,967
Total expenditures 18,158,077 19,020,847
9. Audit fees and non-audit fees
Audit fees 16,000 12,000
Other charges relating to the audit 4,000 13,000
20,000 25,000
These fees are included in operating expenses in Note 8.
10. Commitments for expenditure
The Secretariat is not aware of any capital commitments as at the end of the financial year (2020: Nil).
1
Includes project expenditures under Trust Fund.
25
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
11. Receivables from exchange transactions
2021 2020
Note
US$ US$
Rental receivable 2,852 27,542
Interest receivable 329 15,675
Inter-entity receivables 22.1 364,988 164,552
Sundry recoverable 1,063,041 919,053
Total receivables 1,431,210 1,126,822
Provision for doubtful debts (58,894) (135,152)
Net receivables 1,372,316 991,670
Receivables from exchange transactions are non-interest bearing and are generally on terms of 30 days to over 2
years. As at 30 June, the ageing analysis of receivables from exchange transactions is as follows:
Ageing of past due but not impaired
Less than 30 days 699,495 663,895
30 – 60 days 95,988 23,349
60 – 90 days 94,612 8,872
90 days and over 541,116 430,706
Total 1,431,211 1,126,822
12. Receivables from non-exchange transactions
Membership contribution receivable - 132,103
Donor fees receivable 28,017 59,815
28,017 191,918
Receivables from non-exchange transactions are non-interest bearing and are generally on terms of 30 days to 1 year.
As at 30 June, the ageing analysis of receivables from non-exchange transactions is as follows:
Ageing of past due but not impaired
Less than 30 days 28,017 59,815
90 days and over - 132,103
Total 28,017 191,918
13. Prepayments
Advanced project payments 82,770 82,701
Staff advances 4,042 1,348
Rental bonds receivable 32,125 80,778
118,937 164,827
Current 86,812 84,049
Non-current 32,125 80,778
118,937 164,827
14. Financial assets
Term deposits 64,918 1,529,538
64,918 1,529,538
Term deposits over 90 days are classified as “financial assets – investment deposit.” One term deposit is held with
the Bank of South Pacific (“BSP”) with interest rates of 1.00% maturing on the 27th December 2021.
26
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
15. Property, plant and equipment
Plant,
equipment
Leasehold and Motor
Land Buildings furniture vehicles Total
US$ US$ US$ US$ US$
Cost
Balance at 30 June 2019 2,529,600 4,502,846 1,136,744 133,950 8,303,140
Additions - - 96,573 - 96,573
Disposals - - (18,667) - (18,667)
Balance at 30 June 2020 2,529,600 4,502,846 1,214,650 133,950 8,381,046
Accumulated depreciation
Balance at 30 June 2019 (355,139) (294,760) (954,103) (60,681) (1,664,683)
Disposal - - 16,786 - 16,786
Depreciation expense (135,593) (112,571) (109,311) (21,318) (378,793)
Balance at 30 June 2020 (490,732) (407,331) (1,046,628) (81,999) (2,026,690)
Net book value at 30 June 2020 2,038,868 4,095,515 168,022 51,951 6,354,356
Cost
Balance at 30 June 2020 2,529,600 4,502,846 1,214,650 133,950 8,381,046
Additions - - 109,050 - 109,050
Disposals - - (1,007) - (1,007)
Revaluation – write back (524,909) (435,706) - - (960,615)
Revaluation 860,587 1,277,123 - - 2,137,710
Balance at 30 June 2021 2,865,278 5,344,263 1,322,693 133,950 9,666,184
Accumulated depreciation
Balance at 30 June 2020 (490,732) (407,331) (1,046,628) (81,999) (2,026,690)
Disposal - - 804 - 804
Depreciation expense (291,977) (156,705) (109,005) (20,043) (577,730)
Revaluation – write back 524,909 435,707 - - 960,616
Balance at 30 June 2021 (257,800) (128,329) (1,154,828) (102,042) (1,643,000)
Net book value at 30 June 2021 2,607,478 5,215,934 167,865 31,908 8,023,184
15.1 Leasehold land and buildings carried at valuation
The leasehold land was donated by the Government of Solomon Islands and the buildings were donated by various donors
to Pacific Islands Forum Fisheries Agency.
An independent valuation of the Secretariat’s leasehold land and buildings was performed by CPP Property Development
Services to determine the fair value of the leasehold land and buildings. The valuation is based on the actual development
on the said parcels of land and had been analysed and calculated on the unimproved capital value method. Land
valuation has been carried out on historical comparative method with specific consideration to the whole area, premium,
the duration of lease, topography, location, conditions and transfers of similar land properties and existing improvements
in and around Honiara have also been analysed for comparison purposes with adjustment made to suit the subject
properties. The effective date of the valuation is 30 September 2020.
27
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
16. Payables and accruals from exchange transactions
2021 2020
Note
US$ US$
Other creditors and accruals 1,012,575 1,643,616
Advance vessel registration fees 1,835,504 2,098,206
Advance vessel levy 109,145 125,637
Advance hire of conference centre 22,050 -
Inter-entity payables 22.1 1,913 19,576
Others 207,422 368,922
3,188,609 4,255,957
Terms and conditions of the above financial liabilities:
• Other creditors and accruals are non-interest bearing and are normally settled on 30-day terms;
• Advance vessel registration fees and vessel levy reflect fees and levy received from vessel owners during
the year but the registration period relate to next financial year 2021/2022;
• Advance hire of conference centre relates to the hire of the conference in the next financial year 2021/2022;
• Inter-entity payables relate to US Treaty Funds and it is expected to be settled subsequently; and
• Others comprise payables for employee costs such as taxes to Solomon Islands Government,
superannuation contributions, credit union contributions and fees to Honiara City Council.
The Secretariat has financial risk management policies in place to ensure that all payables are paid within the pre-
agreed credit terms or within 30 days of receiving the invoice.
17. Payables and accruals from non-exchange transactions
Advance member countries contributions 18,854 -
Advance receipt of Australia’s PDF donation 156,250 156,250
Donor funds payable after closure of the project 67,451 -
Ineligible expenditures payable to donors 640,359 -
Deferred revenue for Housing Fund - 105,423
882,914 261,673
Advance donor funds by projects
ADFAT - Program funding 4,202,313 411,052
ADFAT - NTSA 56,224 228,295
ADFAT - Gender Funding 149,892 149,892
ADFAT - MCS 376,474
NZMFAT - Program funding 2,896,062 451,054
NZMFAT - Fisheries Information Management Systems - 9,075
NZMFAT - Te Vaka Moana - 3,335
NZMFAT - Leaders’ Report - 10,616
NZMFAT - IEEBTF 534,186 569,872
NZMFAT - SP Tuna Longline 1,604,780 2,551,392
NZMFAT - Port State Measures 761,269 805,675
NZMFAT - Catch Documentation Scheme 664,682 814,816
NZMFAT - Startegic Planning 815,770 855,005
NZMFAT - Health and Safety well being 93,815 290,000
NZMFAT - Harvest Startegy Funding 25,445 26,233
Japan Promotion Fund/OFCF 2,245,076 2,132,451
OFMP2 – FAO/GEF 51,877 24,953
OFMP2 – UNDP/GEF 102,915 110,828
OFMP3 9,840 50,000
SciFish - 25,792
SciCOFish - 9,418
Food & Agriculture Organisation (FAO) 86,823 98,068
28
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
17. Payables and accruals from non-exchange transactions - continued
2021 2020
US$ US$
Advance donor funds by projects - continued
World Bank - GEF PROP 92,918 96,736
World Bank - IDA PROP) 31,796 107,449
Korea Institute of Ocean Science &Technology (KIOST) 114,770 -
Swedish Fund - 9,213
Western and Central Pacific Fisheries Commission (WCPFC) 84,770 114,273
PEUMP 920,755 1,646,291
Taiwan 1,302 1,302
Observer Cost Recovery Fund 927,393 331,786
Others 137,173 115,602
Total donor funds 16,988,320 12,050,474
Grand total 17,871,234 12,312,147
Advanced member country contributions
Advanced member country contributions of $18,854 (2020: Nil) were received for financial year 2021/2022 and
relates to Fiji and Solomon Islands.
Advanced receipt of Australia’s PDF donation
The Secretariat received Australia’s PDF share of $156,250 (2020: $156,250) from US Treaty for financial year
2021/2022.
Donor funds payable after closure of the projects
The donor funds payable after closure of the projects relates to projects which ended and the remaining balances
from the projects recognised as payable to the donor. The projects that ended are NZMFAT-Fisheries Information
Management Systems, NZMFAT-TeVaka Moana, NZMFAT-Leaders’ Report, SciFish, SciCOFish and Swedish
Fund.
Ineligible expenditures payable to donors
The FFC in May 2021 approved a provision for ineligible payout of US$640,359 payable to the European Union
(EU) and the liability has been recognised in the Secretariat’s financial statements. The liability was paid in the
subsequent financial year.
Advance donor funds
Advance donor funds relate to donor funds received from various donors for specific projects. The total donor
funds received in 2021 was $14,852,869 (2020: $10,881,892) – refer note 7.
The Secretariat recognises as a liability conditions attached to donor funds. Conditions may be imposed by donors
on the use of contributions, and include both a performance obligation to use the donation in a specified manner,
and an enforceable return obligation to return the donation if it is not used in the specified manner. The amount
recognised as a liability is the best estimate of the amount that would be required to settle the obligation at the
reporting date. As the Secretariat satisfies the conditions on the donations through performance in the specified
manner, the carrying amount of the liability is reduced and an amount of revenue equal to that reduction is
recognised.
29
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
18. Employee benefits
2021 2020
US$ US$
Annual leave 776,465 671,428
Retention 479,395 378,387
1,255,860 1,049,815
Current 1,086,543 881,259
Non-current 169,317 168,556
1,255,860 1,049,815
19. Deferred income liability
Current
Arising from fixed asset (i)
- General Fund 133,508 133,508
- Trust Fund 81,234 81,234
- Housing Fund 114,656 114,656
329,398 329,398
Non-current
Arising from fixed asset (i)
- General Fund 3,079,486 3,213,268
- Trust Fund 18,323 35,864
- Housing Fund 2,558,569 2,672,950
5,656,378 5,922,082
5,985,776 6,251,480
(i) An amount of US$333,672 was released from the deferred revenue which represents the depreciation
charge for the year on the related property, plant and equipment (2020: US$333,350).
20. Retirement benefit plans
The local employees of the Secretariat are members of a state-managed retirement benefit plan operated by the
Government of Solomon Islands. Other employees of the Secretariat voluntarily become members of the state-
managed retirement benefit plan. The Secretariat is required by Solomon Islands National Provident Fund Act
(SINPF) to contribute a fixed percentage of 7.5% as an employer contribution to the retirement benefit scheme
to fund the benefits. The only obligation of the Secretariat with respect to the retirement benefit plan is to ensure
compliance with the SINPF Act regarding the employer’s contributions.
The total expense of US$422,637 (2020: US$390,042) is recognised in the statement of financial performance
represents contributions paid to these plans by the Secretariat at rates specified in the rules of the plans. As at
30 June 2021, contributions of US$8,230 (2020: US$22,927) due in respect of the reporting period had not been
paid over to the plans. The amount was paid subsequent to the end of the reporting period.
30
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
21. Financial risk management objectives and policies
The Secretariat’s principal financial liabilities, other than derivatives, comprise of trade and other payables. The main
purpose of these financial liabilities is to finance and provide support for the Secretariat’s operations and
commitments. The Secretariat’s principal financial assets include loans, trade and other receivables, and cash and
short-term deposits that derive directly from its operations.
The Secretariat is exposed to foreign currency risk, interest rate risk, credit risk and liquidity risk. The Secretariat’s
senior management oversees the management of these risks. The Secretariat’s senior management is supported by
a finance team that advises on financial risks and the appropriate financial risk governance framework for the
Secretariat. The Secretariat’s financial risk activities are governed by appropriate policies and procedures. Financial
risks are identified, measured and managed in accordance with the Secretariat’s policies and risk objectives. It is the
Secretariat’s policy that no trading in derivatives for speculative purposes may be undertaken. The Secretariat’s
Executive reviews and agrees policies for managing each of these risks, which are summarised below.
21.1 Foreign currency risk management
The Secretariat undertakes transactions denominated in foreign currencies; consequently, exposures to exchange
rate fluctuations arise. Exchange rate exposures are managed within approved policy.
The carrying amounts of the Secretariat’s foreign currency denominated monetary assets and monetary liabilities at
the end of the reporting period are as follows:
Liabilities Assets
2021 2020 2021 2020
US$ US$ US$ US$
Currency of Solomon Islands 456,249 533,545 252,879 555,458
Currency of Australia 62,976 28,159 - 1,338
Currency of New Zealand 2,588 3,084 33,051 1,483,708
(i) This is mainly attributable to the exposure outstanding on SB$, AU$ and NZ$ cash and cash equivalents,
receivables and payables in the Secretariat at the end of the reporting period.
Foreign currency sensitivity analysis
The Secretariat is significantly exposed to the currencies of Solomon Islands, Australia and New Zealand.
The following table details the Secretariat’s sensitivity to a 10% increase and decrease in the US$ against the relevant
foreign currencies. Sensitivity rate of 10% was used when reporting foreign currency risk internally to key
management personnel and represents management’s assessment of the reasonably possible change in foreign
exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and
adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below
indicates an increase in surplus and accumulated funds where the US$ strengthens 10% against the relevant
currency and a negative number indicates the contrary.
Total impact
2021 2020
US$ US$
Indicative foreign currency gain or loss (i) 23,588 147,571
The Secretariat’s sensitivity to foreign currency has increased during the current period mainly due to the volatility of
SB$, AU$ and NZ$ against US$ during the year as a result of the impact of Covid-19.
31
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
21. Financial assets and financial liabilities - continued
21.2 Interest rate risk management
The Secretariat is exposed to interest rate risk because the Secretariat invests in term deposits at fixed interest rates.
The risk is managed by the Secretariat by maintaining an appropriate mix between fixed rates from different banks.
Cash at bank balance is also interest bearing and these are all current accounts denominated in the currency of
Solomon Islands (SBD) earning interest at a variable rate.
The Secretariat’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk
management section of this note.
Interest rate sensitivity analysis
The sensitivity analysis below have been determined based on the exposure to interest rates for both derivatives and
non-derivative instruments at the end of the reporting period. A 50 basis point increase or decrease is used when
reporting interest rate risk internally to key management personnel and represents management’s assessment of the
reasonably possible change in interest rates.
The interest rate profile of the entity’s interest-bearing financial instruments and cash at bank are as follows:
2021 2020
Fixed-rate instruments US$ US$
Term deposits 64,918 7,299,075
Cash at bank (SBD current accounts) 115,504 118,606
180,422 7,417,681
The Secretariat does not have any borrowings so is not exposed to changes in interest rates on borrowings. The only
impact from changes in interest rates are the Secretariat’s cash at bank balances and term deposits which are not
expected to have a material impact on the Secretariat.
21.3 Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to
the Secretariat. The Secretariat has adopted a policy of only dealing with credit worthy counterparties and obtaining
sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The
Secretariat’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value
of transactions concluded is spread amongst approved counterparties.
Trade and other receivables consist of member country contributions, funds receivable from donors, receivables from
staff or landlords and funds from other managed funds. Ongoing credit evaluation is performed on the financial
condition of accounts receivable in order to reduce any exposure to bad debts. The Secretariat does not have any
significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by
international credit-rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses,
represents the Secretariat’s maximum exposure to credit risk without taking account of the value of any collateral
obtained. Refer to notes 11 and 12 for the past due terms of these financial assets.
21.4 Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Director General, who has established an
appropriate liquidity risk management framework for the management of the Secretariat’s short-term, medium-term
and long-term funding and liquidity management requirements. The Secretariat manages liquidity risk by maintaining
adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flows, and by matching
the maturity profiles of financial assets and liabilities. The entity’s exposure to liquidity risk is considered not material.
32
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
22. Related party transactions
The Secretariat has a related party relationship with its managed funds and its executive officers. During the year
the following funds were managed by the Secretariat:
• Multilateral Fisheries Treaty with the United States of America (UST)
Details of transactions between the Secretariat and other related parties are disclosed below.
22.1 Transactions between the Secretariat and its related parties
During the financial year, the following transactions occurred between the Secretariat and its related parties:
2021 2020
US$ US$
Rent received from UST Funds 44,319 48,277
Housing allowance received from UST Funds 62,899 47,798
Administration fees received from UST Funds 0 204
Management fees received from UST Administration 315,000 315,000
Cost recovery received from UST Administration Fund 171,801 251,965
594,019 663,244
In addition, the net closing balances of accounts receivable and accounts payable arising from transactions
between the Secretariat and its related parties are:
2021 2020
US$ US$
Receivables
US Treaty Administration Fund 358,007 155,736
US Treaty Project Development Fund - 2,999
US Treaty Observer Placement Fund 1,344 2,349
US Treaty Observer Administration Fund 5,637 3,468
364,988 164,552
Payables
US Treaty Project Development Fund (1,913) (19,576)
(1,913) (19,576)
363,075 144,976
All amounts advanced to or payable to related parties are unsecured.
The amounts outstanding will be settled in cash. No guarantees have been given or received. No expense has been
recognised in the period for bad or doubtful debts in respect of the amounts owed by related parties.
33
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
22. Related party transactions - continued
22.2 Key management personnel
During the year the following persons were the executives identified as key management personnel with the greatest
authority and responsibility for planning, directing and controlling the activities of the Secretariat:
Position Name Status of employment
Director General Dr. Seini Manumatavai Tupou Roosen Currently employed.
Deputy Director General Mr. Matthew Bramston Hooper Currently employed.
Director of Fisheries Management Dr. Wetjens Dimmlich Currently employed.
Director of Fisheries Development Dr. Chris Reid Currently employed.
Director of Fisheries Operations Mr. Allan Rahari Currently employed.
Director of Corporate Services Mr. Mesake Nawari Seavula Currently employed.
Legal Counsel Dr. Pio Manoa Currently employed.
The aggregate compensation of the key management personnel comprises of short-term benefits only and is set out
below:
2021 2020
US$ US$
Short-term benefits 1,803,019 1,452,986
1,803,019 1,452,986
The remuneration of key management personnel is determined by the human resources section and approved in the
annual Forum Fisheries Committee meeting having regard to the performance of individuals and market trends. The
amounts disclosed in the table are the amounts recognised as expenses during the reporting period related to key
management personnel.
The Director General is provided a vehicle and housing benefits during the year.
Key management personnel did not receive any remuneration or compensation other than in their capacity as key
management personnel (2020: Nil).
The Secretariat did not provide any compensation at non-arm’s length terms to close family members of key
management personnel during the year (2020: Nil).
The Secretariat did not provide any loans to key management personnel or their close family members.
34
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
23. Cash and cash equivalents
(a) Reconciliation of cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks and
investments in term deposits with an original maturity of three months or less. Cash and cash equivalents at the end
of the reporting period as shown in the statement of cash flows can be reconciled to the related items in the statement
of financial position as follows:
2021 2020
US$ US$
Petty cash 183 316
Cash at bank 22,293,507 11,031,214
Term deposits - 5,769,537
22,293,690 16,801,067
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for
varying periods of between one month to three months, depending on the immediate cash requirements of the
Secretariat, and earn interest at the respective short-term deposit rates.
The cash and cash equivalents balance of the Secretariat includes an amount of $16,988,320 (2020: $12,050,474)
that relates to unspent donor funds that are subject to restrictions. The unspent funds relate to activities funded under
Trust Fund. The restrictions attached to these donor funds specify that the funds must be spent for the
aforementioned respective purposes, and provide a timeframe within which the agreed-upon deliverables required
for achieving the purpose of the funds must be completed.
(b) Reconciliation of surplus for the year to net cash flows from operating activities
2021 2020
US$ US$
(Deficit)/surplus for the year (730,119) 610,332
Less: Interest received classified as investing activities (18,350) (203,999)
Add: Depreciation 577,730 378,793
Less: Loss/(gain) on disposal of assets (197) (5,570)
Movement in assets and liabilities:
(Increase)/decrease in receivables from exchange transactions (380,647) (165,946)
(Increase)/decrease in receivables from non-exchange
transactions 191,918 (122,638)
Decrease in prepayment 45,889 100,108
(Decrease)/increase in payables and accruals from exchange
transactions (1,067,347) (339,044)
Increase/(decrease) in payables and accruals from non-exchange
(2,743,955)
transactions 5,559,087
(Increase)/decrease in employee benefits 206,045 122,813
Decrease in deferred income liabilities (265,705) (272,375)
4,118,304 (2,641,481)
24. Contingent liabilities and contingent assets
The Secretariat is not aware of any contingent liabilities as at the end of the financial year.
25. Events after the reporting period
There has not arisen in the interval between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely in the opinion of the Director General, to affect significantly
the operations of the Secretariat, the results of those operations, or state of affairs of the Secretariat in subsequent
financial years.
35
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
26. Explanation of major variances against budget
The Secretariat’s net deficit was $730,119. The net effect of the following items contributed to this deficit - the major
variations of income and expenses or projects which have overspend (underspend) by more (less) than 5% are
explained below:
Income:
Total funds received for programs and projects were $26,863,910 which includes advanced funds received of
$6,284,224 for next financial year (FY2021/2022) – refer Note#7. The available funds for current financial year (less
advance funds received) is $20,579,686 compared to budget of $17,533,996. The additional funds against budget
related to NZMFAT-Core funding ($326k), NZ-MFAT-SPTLPM ($821k), NZ-MFAT-Strategic Plan ($420k) and JPF
($1.827m). Due to the effects of the global pandemic COVID-19, only $9,875,590 were utilized and $10,704,096
was carried forward to the next financial year since a number of program and/or project activities have been delayed
or deferred which were planned or anticipated to be completed in the 2021 financial year. It was anticipated that the
borders would open in the first half of 2021 but this did not eventuate. As a result, most projects and activities
associated with travel, in-country work and consultancies were conducted virtually which resulted in significant
reduction in expenditures relative to budget in the financial year.
Vessel registration fees and vessel levy decreased by $445,708 and $34,035 respectively compared to the budget
due to the decrease in vessels from the budgeted 1,200 vessels to 1,046 vessels. The drop in the number of vessels
applying for good standing on the FFA Vessel Register indicate that some vessels have moved to operate solely in
the high sea areas or in other ocean regions.
Housing rental receipts and cost recovery income were lower than budget due to elimination of inter-entity
transactions of $1,191,567 and $940,134 respectively.
Interest received has decreased by $21,495 compared to budget due to decrease in investment of funds in short-
term deposits and decrease in interest rates.
Benefit derived from property, plant and equipment increased by $13,929 as more assets were utilized and benefits
recognised.
Other income consists of medical reimbursements, conference hire, insurance claims and exchange gains.and was
more than budgeted by $62,850 as a result of the recognition of insurance claims for the burnt down house as
revenue.
Expenditures:
Significant underspending of funds was identified in each Division at the end of the 2020/2021 financial year totaling
$9.748million due to most projects and activities associated with travel, in-country work and consultancies were
conducted virtually which resulted in significant reduction in expenditures relative to budget in the financial year. It
was anticipated that the borders will open in the first half of 2021 but this did not eventuate and hence the significant
underspend.
There were also delays in recruitment of some staff positions which resulted in the deferral of the related activities
such as NZMFAT-Strategic Planning and NZMFAT-SP Tuna Longline.
The carried over funds for programs and projects will be recognised as revenue in the 2021/2022 financial year.
The savings or overspending from expenditures for General Fund, Housing Fund and VMS will be transferred to
the reserves.
36
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
27. Segment Reporting
27.1 Statement of financial performance
General Fund Trust Fund Housing Fund VMS Elimination Grand Total
US$ US$ US$ US$ US$ US$
INCOME
Member country contributions 2,050,416 - - - - 2,050,416
Donor funds - 9,926,932 - - (51,342) 9,875,590
Vessel registration fees - - - 3,450,590 - 3,450,590
Housing rental receipts - - 1,470,909 - (1,191,567) 279,342
Interest received 966 - 133 1,906 - 3,005
Program support and cost recovery 1,510,334 - - - (940,134) 570,200
Australia Project Development Fund donation 156,250 - - - - 156,250
UST levy 315,000 - - - - 315,000
Vessel levy 202,965 - - - - 202,965
Benefit from property, plant and equipment 132,334 85,508 115,831 - - 333,672
Other income 60,066 - 216,626 6,180 (91,944) 190,928
Total income 4,428,331 10,012,440 1,803,498 3,458,676 (2,274,987) 17,427,958
EXPENDITURES
Output 1: High Level Advice 2,019,003 1,963,086 - 96,828 (296,529) 3,782,388
Output 2: Fisheries Management - 2,921,355 - - (146,784) 2,774,571
Output 3: Fisheries Development - 2,616,137 - - (264,181) 2,351,956
Output 4: Fisheries Operations 100,679 2,070,920 - 3,219,997 (1,272,207) 4,119,389
Output 5: Corporate Services 3,019,262 440,942 1,819,402 145,453 (295,286) 5,129,773
Total expenditures 5,138,944 10,012,440 1,819,402 3,462,278 (2,274,987) 18,158,077
Deficit for the year (710,613) - (15,904) (3,602) - (730,119)
37
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
27. Segment Reporting - continued
27.2 Statement of financial position
General Fund Trust Fund Housing Fund VMS Elimination Grand Total
US$ US$ US$ US$ US$ US$
Assets
Current assets
Cash and cash equivalents 944,511 18,941,844 22,303 2,385,032 - 22,293,690
Receivables from exchange transactions 1,693,092 360,000 62,160 649,122 (1,420,074) 1,344,300
Receivables from non-exchange transactions - 28,017 - - - 28,017
Financial assets – investment deposits 64,918 - - - - 64,918
Prepayments 18,313 2,264 60,014 6,222 - 86,813
Total current assets 2,720,834 19,332,124 144,477 3,040,376 (1,420,074) 23,817,737
Non-current assets
Property, plant and equipment 4,385,101 99,557 3,535,647 2,878 - 8,023,184
Prepayments - - 32,125 - - 32,125
Total non-current assets 4,385,101 99,557 3,567,772 2,878 - 8,055,309
Total assets 7,105,935 19,431,681 3,712,249 3,043,255 (1,420,074) 31,873,046
38
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
27. Segment Reporting - continued
27.2 Statement of financial position - continued
General Fund Trust Fund Housing Fund VMS Elimination Grand Total
US$ US$ US$ US$ US$ US$
Liabilities
Current liabilities
Payables and accruals from exchange transactions 510,810 1,621,363 58,098 2,418,412 (1,420,074) 3,188,609
Payables and accruals from no-exchange transactions 815,463 17,055,771 - - 17,871,234
Employee benefits 347,640 556,614 2,953 179,336 - 1,086,543
Deferred revenue 133,508 81,234 114,656 - - 329,398
Total current liabilities 1,807,421 19,314,982 175,707 2,597,748 (1,420,074) 22,475,784
Non-current liabilities
Employee benefits 45,344 98,377 - 25,597 - 169,317
Deferred revenue 3,081,177 18,323 2,556,878 - - 5,656,377
Total non-current liabilities 3,126,521 116,699 2,556,878 25,597 - 5,825,695
Total liabilities 4,933,941 19,431,681 2,732,585 2,623,346 (1,420,074) 28,301,479
Net assets 2,171,994 - 979,664 419,909 - 3,571,567
Equity
Accumulated surpluses 985,420 -* 28,528 419,909 - 1,433,857
Revaluation reserves 1,186,574 - 951,136 - - 2,137,710
Total equity 2,171,994 - 979,664 419,909 - 3,571,567
* The accumulated funds under the Trust Fund of US$578,738 from prior years was transferred to the General Fund.
39
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
28. Summary of Trust Fund expenditures
2021 2021 2020
% of % of % of
Donors Budget Actual Actual
Total Total Total
USD USD USD
ADFAT – Program funding
Output 1: High level advice 884,934 717,600 773,041
Output 2: Fisheries management 287,119 278,647 360,574
Output 3: Fisheries development 703,461 623,954 521,798
Output 4: Fisheries operations 799,826 1,009,127 750,341
Output 5: Corporate services 212,993 55,919 241,058
2,888,333 16.47% 2,685,247 27.19% 2,646,812 22.28%
ADFAT – RSIS
Output 3: Fisheries development - - 46,595
- 0.00% - 0.00% 46,595 0.39%
ADFAT – NTSA
Output 1: High level advice 416,217 64,607 115,447
Output 4: Fisheries operations 106,902 107,463 104,627
523,120 2.98% 172,070 1.74% 220,074 1.85%
NZMFAT – Program funding
Output 1: High level advice 993,994 812,231 563,839
Output 2: Fisheries management 268,914 356,918 262,314
Output 3: Fisheries development 695,774 365,293 466,631
Output 4: Fisheries operations 480,143 459,926 149,013
Output 5: Corporate services 240,271 83,385 29,222
2,679,096 15.28% 2,077,753 21.04% 1,471,019 12.38%
NZMFAT – IMS
Output 4: Fisheries operation - - 40,792
- 0.00% - 0.00% 40,792 0.34%
NZMFAT – Te Vaka Moana
Output 3: Fisheries development - - 25,700
- 0.00% - 0.00% 25,700 0.22%
NZMFAT - Leaders Report
Output 3: Fisheries development - - 26,371
- 0.00% - 0.00% 26,371 0.22%
NZMFAT – IEEB
Output 3: Fisheries development 936,409 421,774 621,184
936,409 5.34% 421,774 4.27% 621,184 5.23%
NZMFAT - SPTLPM
Output 2: Fisheries management 1,729,766 946,613 378,515
1,729,766 9.87% 946,613 9.59% 378,515 3.19%
NZMFAT – Port State Measures
Output 2: Fisheries management 807,993 44,405 78,492
807,993 4.61% 44,405 0.44% 78,492 0.66%
40
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
28. Summary of Trust Fund expenditure - continued
2021 2021 2020
% of % of % of
Donors Budget Actual Actual
Total Total Total
USD USD USD
NZMFAT – Catch Documentation
Scheme
Output 2: Fisheries management 1,149,464 150,134 271,666
1,149,464 6.56% 150,134 1.52% 271,666 2.29%
NZMFAT – Leadership Program
Output 1: High level advice 56,418 63,745 63,831
56,418 0.32% 63,745 0.64% 63,831 0.54%
NZMFAT - Harvest Strategy
Output 2: Fisheries management 3,243 788 18,003
3,243 0.02% 788 0.01% 18,003 0.15%
NZMFAT - Strategic Plan
Implementation
Output 1: High level advice 435,000 39,236 145,495
435,000 2.48% 39,236 0.40% 145,495 1.22%
NZMFAT - Health Implementation
Output 5: Corporate services 333,500 196,185 -
333,500 1.90% 196,185 1.99% - 0.00%
OFCF/JPF
Output 1: High level advice 456,431 186,685 192,407
Output 3: Fisheries development 137,900 51,238 76,670
Output 4: Fisheries operations 68,850 29,792 -
Output 5: Corporate services - - 2,113
663,181 3.78% 267,715 2.71% 271,190 2.28%
OFMP2 - FAO/GEF
Output 2: Fisheries management 160,672 129,985 744,584
160,672 0.92% 129,985 1.32% 744,584 6.27%
OFMP2 - UNDP/GEF
Output 2: Fisheries management 945,304 901,953 231,066
Output 5: Corporate services - - 335
945,304 5.39% 901,953 9.13% 231,401 1.95%
OFMP3
Output 2: Fisheries management 50,000 108,035 -
50,000 0.29% 108,035 1.09% - 0.00%
FAO
Output 4: Fisheries operation 60,000 49,480 63,807
60,000 0.34% 49,480 0.50% 63,807 0.54%
WB-IDA PROP
Output 3: Fisheries development 651,765 340,371 1,036,486
651,765 3.72% 340,371 3.45% 1,036,486 8.73%
WB-IDA/GEF PROP
Output 3: Fisheries development 90,971 87,971 988,341
90,971 0.52% 87,971 0.89% 988,341 8.32%
41
PACIFIC ISLANDS FORUM FISHERIES AGENCY
Notes to the financial statements
For the year ended 30 June 2021 – continued
28. Summary of Trust Fund expenditure – continued
2021 2021 2020
% of % of % of
Donors Budget Actual Actual
Total Total Total
USD USD USD
KIOST
Output 4: Fisheries operation - - 72,541
- 0.00% - 0.00% 72,541 0.61%
PEW
Output 4: Fisheries operation 64,366 13,000 87,419
64,366 0.37% 13,000 0.13% 87,419 0.74%
WCPFC
Output 1: High level advice 96,771 29,503 55,056
96,771 0.55% 29,503 0.30% 55,056 0.46%
Observer Cost Recovery Fund
Output 4: Fisheries operation 577,035 326,563 875,843
577,035 3.29% 326,563 3.31% 875,843 7.37%
Taiwan
Output 4: Fisheries operation - - 16,800
- 0.00% - 0.00% 16,800 0.14%
PEUMP
Output 3: Fisheries development 2,457,586 678,071 987,589
Output 5: Corporate services - - 3,120
2,457,586 14.02% 678,071 6.87% 990,709 8.34%
Other
Output 1: High level advice - - 20,685
Output 2: Fisheries management - - 117,916
Output 4: Fisheries operation 27,500 43,712 90,446
Output 5: Corporate services 146,501 101,280 160,971
174,001 0.99% 144,992 1.47% 390,018 3.28%
Total donor expenditures 17,533,996 100% 9,875,589 100% 11,878,744 100%
42