PACIFIC AVIATION SAFETY OFFICE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 PACIFIC AVIATION SAFETY OFFICE GENERAL MANAGER'S REPORT TO THE COUNCIL OF REPRESENTATIVES FOR THE YEAR ENDED 31 DECEMBER 2015 Your General Manager presents this report on the financial statements of the Organisation for the year ended 31 December 2015. The following held offices in the Council of Representatives at the date of this audit report are as follows: Date appointed Date resigned Wilson Sagati, PNG - Chairman 2003 Bill MacGregor, Niue - Member 2006 Joseph Niel, Vanuatu - Member 2011 Uigaese Paelate, Tuvalu - Member 2011 Chris de Seria, World Bank - Observer Member 2013 Michelle Poyser, Australia - Member 2013 Netava Waqa, Fiji - Member 2014 Nanai Saaga, Samoa - Co-deputy Chairman 2014 Ringo Fa'oliu, Tonga - Co-deputy Chairman 2014 State of affairs The result of the organisation's operations for the financial year was a surplus of AUD 132,555 (2014: deficit AUD 17,465). Activities The principal and continuing activity of the organisation is the conduct of aviation oversight and safety in the Pacific Region. Property, plant and equipment During the financial year the organisation purchased AUD 12,346 worth of plant and equipment (2014: AUD 49,715). Events subsequent to balance date There does not exist at the date of this report any other contingent liability or any charge on the organisation's assets securing the liability of any other person which has arisen since 31 December 2015. No contingent or other liability has become enforceable on or before the date of this report which, in the General Manager's opinion, will or may substantially affect the ability of the organisation to meet its obligations as and when they fall due (2014: Nil). Loan and Grant covenants The following have been produced in accordance with: (i) Section 4.02 of the ADB Loan Agreement (ii) Section 311 .B. 3 of the WB Financing Agreement IDA-H883 (iii) Article 24 of the Government Hosting Agreement (iv) Dedicated Bank accounts (a) In Australian Dollars for the ADB loan related funds (b) In USD Dollars for WB Grant funds (v) Audited financial statements have been furnished to ADB no later than 6 months following the end of the financial year; and (vi) Furnish ADB such other information concerning such accounts and financial statements and the audit thereof. PACIFIC AVIATION SAFETY OFFICE GENERAL MANAGER'S REPORT TO THE COUNCIL OF REPRESENTATIVES FOR THE YEAR ENDED 31 DECEMBER 2015 Other circumstances At the date ofthis report the General Manager is not aware of any circumstances which would render any amount stated in the accounts misleading. Place of business The Pacific Aviation Safety Office is a non-profit International Organisation set up under the Pacific Islands Civil Aviation Safety and Security Treaty and operated for the benefit of member states. PASO is currently headquartered in Port Vila, Vanuatu. Distributions Any surpluses are used in the furtherance of its objectives and no distributions are made to members. Signed on behalf of the Council of Representatives. ......... 31 August 2016 General Manager Date ......... 31 August 2016 Councillor Date 2 Iu parLners CIHARTE FRED ACOU IANTS AND BUS. E ADVISER,S, Independent Auditors' Report to the Council Representatives of Pacific Aviation Safety Office We have audited the accompanying financial statements of Pacific Aviation Safety Office which comprise the statement of financial position as at 31 December 2015, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes set out on pages 5 to 15. Council of Representatives' responsibility for the financial statements The Council of Representatives of the Organisation are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. Auditors' responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. These standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Organisation's preparation and fair presentation of the financial statements 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, the financial statements have been properly prepared in accordance with the provisions of the Charities Association (Consolidation) Act [CAP 140] and give a true and fair view of the financial position of the Organisation as at 31 December 2015, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. Emphasis of matter Without qualification to the opinion expressed above, we draw attention to Note 2 to the financial statements concerning the preparation of the financial statements on a going concern basis. LAW PARTNERS Chartered Accountants (Qualified auditors under Section 130 of the Port Vila Companies Act No. 25 of 2012 of the Dated at this 31st day of August 2016 Republic of Vanuatu) TEL+r678 22 091 FAX +678 23 665 mail fdawpartnersvanuatu.com PRINCIPALS LAW PARTNERS HOUSE JONATHAN LAW PO BOX 212 www.awpcrtriers vanuatu.com ViCKI JOE PORT VILA I VANUATU 3 PACIFIC AVIATION SAFETY OFFICE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 INDEPENDENT AUDIT REPORT TO THE MEMBERS Audit Findings In addition to our opinion on the statutory audit, as auditors of PASO we are required to form an opinion for the following items: (a) Repayment of ADB Loan Funds In our opinion PASO fully utilised ADB funds for purposes as indicated in the loan agreement, as at 31 December 2015 and currently conforms with the repayment schedule. (b) Compliance with Specific and Financial ADB Covenants In our opinion PASO has complied with the Particular Covenants set out in Article IV of the loan agreement. In our opinion PASO has adhered to the requirements of the Financial Covenants in Schedule 5 paragraphs 13, 14, 18 - 20 of the loan agreement, except that PASO has not complied with paragraph 21 of the loan agreement which requires PASO to ensure its member countries to provide, in a timely manner, all necessary counterpart funds and in-kind contributions for successful project implementation. The main reason for PASO not being able to comply with this particular covenant is due to the failure by some member countries to comply with their treaty obligations with regards to payment of subscriptions and consulting services. (c) Utilisation of Designated Funds under the WB Grant Funds In our opinion PASO was compliant with the operation of the Designated Account as indicated in the Finance Agreement. (d) Statement of Expenditure Procedures We are unable to form an opinion on the Statement of Expenditure (SOE) Procedures as they are not currently applicable to PASO. (e) Conformity with WB Procurement Guidelines In our opinion PASO adhered to the WB Procurement Guidelines. 4 PACIFIC AVIATION SAFETY OFFICE STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in A ustralian dollars Restated Note 2015 2014 Revenue Operating revenue 1,761,697 878,682 Interest income 117,799 1,865 Total revenue 3 1,879,496 880,547 Expenses Operating expenses 3 (1,746,941) (898,012) Net surplus / (deficit) 132,555 (17,465) The income statement is to be read in conjunction wit/h the notes to the financial statements set out on pages 9 to Is5. 5 PACIFIC AVIATION SAFETY OFFICE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in A ustralian dollars Restated 2015 2014 Accumulated deficit at the beginning of the financial year (1,934,955) (1,917,490) Prior year adjustments: 17 Restated Opening balance (1,934,953) (1,917,490) Net surplus/(deficit) for the financial year 132,555 (17,465) Accumulated deficit at the end of the financial year (1,802,400) (1,934,955) The statement of changes in equity is to be read in cotjunction with the notes to the financial statements set out on pages 9 to 15. 6 PACIFIC AVIATION SAFETY OFFICE BALANCE SHEET AS AT31 DECEMBER2015 Expressed in Australian dollars Restated Note 2015 2014 Current assets Cash 4 353,361 464,846 Receivables 5 260,675 106,663 Other assets 6 4,682 - WB Grant Receivable 18 - Total current assets 618,718 571,509 Non-current assets Property, plant and equipment 7 51,992 52,528 Total non-current assets 51,992 52,528 Total assets 670,710 624,037 Current liabilities Creditors 8 359,534 136,169 Prepaid subscriptions 130,998 0 Provisions 10 10,297 9,830 Deferred revenue 35,049 56,348 Loan - Asian Development Batik 9 89,649 80,903 Total current liabilities 625,527 283,250 Non-current liabilities Loan - Asian Development Bank 9 1,475,489 1,644,817 Provisions 10 26,585 21,254 WB Grant Reimbursables 18 147,457 207,198 WB Revolving Fund 19 198,052 402,471 Total non-current liabilities 1,847,583 2,275,740 Total liabilities 2,473,110 2,558,990 Excess of liabilities over assets (1,802,400) (1,934,953) Accumulated deficit (1,802,400) (1,934,953) Total accumulated deficit (1,802,400) (1,934,953) The balance sheet is to be read in conjunction with the notes to the financial statents set out on pages 9 to 15. General Manager 31 Auiust 2016 Date 7 PACIFIC AVIATION SAFETY OFFICE STATEMENT OF CASH FLOWS FOR 'ri-E YEAR ENDED 31 DECEMBER 2015 Expressed in A ustralian dollars Restated Note 2015 2014 Cash flows from operating activities Cash receipts in the course of operations 1,722,621 1,361,244 Cash payments in the course of operations (1,636,924) (855,718) Interest received 2,788 1,865 Interest expense (27,117) (24,699) Net cash provided by operating activities I1(b) 61,368 482,692 Cash flows from investing activities Purchase of property, plant and equipment (12,346) (36,449) Proceeds on sale from property, plant and equipment 75 411 Net cash used in investing activities (12,271) (36,038) Cash flows from financing activities Movement in borrowing (160,582) (40,819) Net cash used in financing activities (160,582) (40,819) Net cash increase (111,485) 405,835 Cash and cash equivalents at the beginning of the financial year 464,846 59,011 Cash and cash equivalents at the end of the financial year 11(a) 353,361 464,846 The statement of cash flows is to be read in conjunction with the notes to the financial statements set out on pages 9 to 15. 8 PACIFIC AVIATION SAFETY OFFICE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in Australian dollars Statement of significant accounting policies Pacific Aviation Safety Office is a non-profit International Organisation set up under the Pacific Islands Civil Aviation Safety and Security Treaty and operated for the benefit of member states. The significant policies which have been adopted in the preparation of these financial statements are: (a) Statement of compliance The financial statements of the organisation are drawn up in accordance with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB) and interpretations issued by the International Financial Reporting Interpretation Committee (IFRIC) of the IASB and the requirements of the Charities Association (Consolidation) Act [CAP 140]. (b) Basis of preparation They are prepared on the basis of historical costs and do not take into account changing money values or, except where stated, current valuations of non-current assets, The financial statements are presented in Australian dollars (AUD). The accounting policies are consistently applied and, except where there is a change in accounting policy, are consistent with those of the previous year. There were no changes in accounting policies during the current financial year. (c) Revenue recognition Grant revenue Grants are recognised in the income statement principally on an accrual basis. Grants that compensate the organisation for expenses incurred are recognized as revenue in the income statement in the same periods in which the expenses are incurred. Service revenue Income from services are recognized in the income statement upon completion of the service. (d) Foreign currency Transactions Foreign currency transactions are translated to Australian dollars at the rates of exchange ruling at the dates of the transactions. Amounts receivable and payable in foreign currencies at balance date are translated at the rates of exchange ruling on that date. Exchange differences relating to amounts payable and receivable in foreign currencies are brought to account in the profit and loss account in the financial year in which the exchange rates change. (e) Property, plant and equipment Acquisitions Items of property, plant and equipment are recorded at cost and depreciated as outlined on the next page. 9 PACIFIC AVIATION SAFETY OFFICE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in Australian dollars Disposal of assets The gain or loss on disposal of assets is calculated as the difference between the carrying amount of the assets at the time of disposal and the proceeds on disposal, and is included in the result in the year of disposal. Depreciation Depreciation is charged on a straight line basis and the following rates are used: * Office furniture 20% * IT and office equipment 20% * Motor vehicles 20% Assets are depreciated from the date of acquisition. (f) Employee entitlements Wages, salaries and annual leave The provision for employees' entitlements to wages, salaries and annual leave represents the amount that the organisation has a present obligation to pay resulting from employees' services provided up to balance date. The provision has been calculated at nominal amounts based on current wage and salary rates and includes related on-costs. Severance allowance Severance allowance is calculated at the rate of a month's salary for each year of service. It is assumed that employees will remain in the organisation employment for the period necessary to qualify for the respective entitlements. Vanuatu National Provident Fund Contributions to the Vanuatu National Provident Fund are recognized as an expense in the income statement in the period in which they are incurred. (g) Receivables Receivables are stated at nominal values, less write-downs for any amounts expected to be irrecoverable. (h) Value Added Tax (VAT) Under the Host State Agreement between the Government of the Republic of Vanuatu and the Organisation, its assets, income and property, owned or occupied in Vanuatu shall be exempt from all forms of taxation including Customs duties and Value Added Tax. (i) Impairment The carrying amounts of the company's assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement. (j) Comparatives Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures. 10 PACIFIC AVIATION SAFETY OFFICE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in Australian dollars 2. Going concern The financial statements of the organisation have been prepared on a going concern basis, which assumes continuity of normal business activities and the settlement of liabilities in the ordinary course of business. The Council representatives consider the going concern principle to be applicable in the preparation of these financial statements given the ongoing financial support provided by the organisation's aid donors and member nations' utilisation of its services in generating income as well as yearly subscriptions of each member nations. Restated 2015 2014 3. Net surplus/(deficit) Net deficit has been arrived at after including: Operating revenue Service revenue 440,987 231,832 Members subscriptions 279,670 279,620 Grant income - Vanuatu government hosting 224,405 79,936 Grant income - Taiwan - 25,861 Grant income - AusAID - 23,918 Grant Income - World Bank 757,243 186,687 General administration funds 51,670 40,175 Interest income 2,788 1,865 Net foreign exchange gain - unrealised 4,859 - Net foreign exchange gain - realised 117,799 - Proceeds on sale of fixed assets 75 9,947 Other revenue - 707 Total operating revenue 1,879,496 880,547 Operating expenses Depreciation 12,882 10,038 Net foreign exchange loss - realised - 38,888 VNPF contributions 5,382 4,059 Wages and salaries 316,017 347,207 Other expenses 1,412,660 497,820 Total operating expenses 1,746,941 898,012 Net surplus/ (deficit) 132,555 (17,465) 4. Cash Petty cash 245 235 Cash in bank - AUD account 131,417 26,267 Cash in bank- AUD ADB account 2,911 11,424 Cash in bank - NZD account - - Cash in bank - Vatu account 15,486 19,199 Cash in bank - USD account 198,052 402,471 348,111 459,596 Term deoosits Term deposit - AUD 5,250 5,250 5,250 5,250 353,361 464,846 11 PACIFIC AVIATION SAFETY OFFICE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in A ustralian dollars Restated 5. Receivables 2015 2014 Trade debtors 315,875 160,005 Less: Provision for doubtful debts (57,688) (57,688) 258,187 102,317 Sundry debtors 2,488 4,346 260,675 106,663 6. Other assets Prepayments 4,682 - 7. Property, plant and equipment Office firniture At cost 16,347 14,983 Less: Accumulated depreciation (13,498) (14,475) 2,849 508 IT and office equipment At cost 147,776 138,105 Less: Accumulated depreciation (134,015) (131,117) 13,761 6,988 Motor vehicles At cost 48,248 48,248 Less: Accumulated depreciation (12,866) (3,216) 35,382 45,032 Total property plant and equipment - at net book value 51,992 52,528 Movement in property, plant and equipment Opening net book value 52,528 26,117 Additions 12,346 49,715 Disposals - (13,266) Depreciation (12,882) (10,038) Closing net book value 51,992 52,528 8. Creditors Trade creditors - AUD 13,640 30,846 Trade creditors - VUV 18,612 12,662 Trade creditors - NZD 36,933 74,572 Trade creditors - USD 290,349 18,089 359,534 136,169 9. Borrowings Current Loan - Asian Development Bank 89,649 80,903 Non-current Loan - Asian Development Bank 1,475,489 1,644,817 12 PACIFIC AVIATION SAFETY OFFICE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in Australian dollars Bank loan details The loan from Asian Development Bank is for a Special Project, the objective of which is to ensure that the Pacific Aviation sector meets all international requirements for safety and security regulation and oversight. The loan facility is for USD1,500,000. PASO has fully exhausted its loan from ADB as at 31 December 2010 resulting in no drawdowns for the current year ended 31 December 2015. An interest rate of 1.5% per annum is charged on the amount of the loan withdrawn on the loan account and outstanding from time to time. Restated 2015 2014 10. Provisions Current Employees' entitlements 10,297 9,830 Non-current Employees' entitlements 26,585 21,254 11. Notes to the statement of cash flows (a) Reconciliation of cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and at bank, net of outstanding bank overdrafts. Cash and cash equivalents as at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the balance sheet as follows: Cash in bank and on hand 353,361 464,846 (b) Reconciliation of net surplus/(deficit) to net cash provided by operating activities Net surplus/ (deficit) 132,555 (17,465) Non-cash items - Depreciation 12,882 10,038 - Gain on sale of property, plant and equipment (75) (411) Net cash used in operating activities before change in assets and liabilities 145,362 (7,838) Change in assets and liabilities during the financial year - (Increase) / decrease in receivables (154,012) 197,314 - (Increase) / decrease in other assets (4,682) 4,198 - Increase / (decrease) in payables 90,201 346,850 - (Decrease) / increase in deferred revenue (21,299) (34,927) - Increase in provisions 5,798 (22,905) Net cash used in operating activities 61,368 482,692 13 PACIFIC AVIATION SAFETY OFFICE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in A ustralian dollars 12. Principal activities Pacific Aviation Safety Office's primary activity is providing technical services for aviation safety in compliance with international requirements for safety and security regulation and oversight within the 13 member South Pacific nations. The organisation receives income as follows: (a) Annual subscription fees from member nations and income from services rendered to various Civil Aviation Authorities. (b) Grants from the Government of Vanuatu and other organisations. (c) A soft term loan from the Asian Development Bank. 13. Auditors' remuneration Restated 2015 2014 Amounts received or due and receivable by the auditors of the company for: Auditing the financial statements 9,846 9,266 14. Contingent liabilities The Council of Representatives are aware of no contingent liabilities as at the date of signing the General Manager's report (2014: Nil). 15. Post balance sheet events No events have occurred since the balance sheet date which would require adjustments or disclosure in the financial statements (2014: Nil). 16. Employees The number of full time permanent employees as at 31 December 2015 was 4 (2014: 8). 17. Prior year adjustment A net adjustment of AUD207,198 was made to correct the World Bank Receivable and World Bank Revolving balance as at 31 December 2014. This is represented by: 2015 Reported Surplus (as at year end 31 December 2014) 189,733 - Adjust to correct actual grant funds received during 2014 (159,145) (decrease) - Adjust to reduce foreign exchange gain - unrealised (39,851) (decrease) - Adjust to take up foreign exchange loss - realised (8,202) (decreased) (207,198) (17,465) 14 PACIFIC AVIATION SAFETY OFFICE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in Australian dollars 18. Notes to WB Grant Receivable and WB Grant Reimbursable (a) WB Grant Receivable Related adjustments per note 17 have reduced the receivable balance to NIL. As such the WB Grant Reimbursable has remained and has been replenished during the year. The movement during the year as follows: Restated 2015 21 2014 Opening Balance - 207,198 Corrective adjustment to ineligible expenditures as no funds are owing from the World Bank. - (207,198) (b) WB Grant Reimbursable Reimbursables movement during the year represent efforts to replenish ineligible spending in 2014 against the Grant. Restated 2015 2014 Movement in WB Grant Reimbursable: Opening balance 207,198 - Add: Ineligible expenditure against DA - 207,198 Less: Replenishment payment made during the year (59,741) - Closing balance 147,457 207,198 19. WB Revolving Fund The revolving balance represents cash in bank pertaining to the World Bank Disbursement Account (USD) as at year end is also part of Cash at Bank - see also note 4. 2015 Movement in WB Revolving Fund Opening balance 402,471 Add: Receipts (increase) 712,414 Less: Funds utilised during the year (decrease) (916,833) Closing balance 198,052 15 cUoclLner5 C I I IFR F1 I I H l fA i : - 11 11 -1 t I S: I )v 1,1ii' PACIFIC AVIATION SAFETY OFFICE ACCOUNTANTS STATEMENT The additional financial data presented on pages 16 and 22 are in accordance with the books and records of the Organisation which have been subjected to the auditing procedures applied in our audit of the Pacific Aviation Safety Office for the year ended 31 December 2015, It will be appreciated that our audit did not cover all details of the additional financial data. Accordingly we do not express an opinion on such financial data and no warranty of accuracy or reliability is given. In accordance with our firm's policy, we advise that neither the firm nor any member or employee of the firm undertakes responsibility arising in any way whatsoever to any person (other than the Pacific Aviation Safety Office) in respect of such data, including any errors or omissions therein, arising through negligence or otherwise however caused. A &r4o4 LAW PARTNERS Port Vila Chartered Accountants 31 August 2016 TEL+678 22 091 FAX .678 23 665 mai (Rawpartnersvanuatu.com PRINCIPALS LAW PARTNERS HOUSE 16 JONATHAN LAW PO BOX 212 www. lauJpartners vanuatucom VICK) JOE PORTVILA I VANUATU PACIFIC AVIATION SAFETY OFFICE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in A ustralian dollars Restated Account Name 2015 2014 Income Members subscriptions 279,670 279,620 Service revenue 440,987 231,832 Grant income - Vanuatu Government 224,405 79,936 Grant income - Taiwan 0 25,861 Grant income - AusAID 0 23,918 Grant income - WB 757,243 186,687 Sundry income - 51,745 50,829 1,754,049 878,682 Other income Foreign exchange gain - unrealised 4,859 - Foreign exchange gain - realised 117,799 - Interest received 2,788 1,865 Total Income 1,879,496 880,547 Expenditures Accounting fees 0 0 Advertising and promotion 1,056 0 Auditor's remuneration 10,140 9,846 Bank charges 1,732 1,313 Communication expenses 6,012 7,101 Consultancy expenses 106,061 146,917 Council expenses 19,748 0 Depreciation 12,882 10,038 Entertainment expenses 314 173 Foreign exchange loss - realised 0 47,091 Foreign exchange loss - unrealised 0 881 Information technology expenses 16,495 17,416 Insurance 3,800 9,527 Interest paid 39,108 24,698 Late Charges 0 52 Light and power 13,235 10,140 Miscellaneous expenses 1,218 26,093 Motor vehicle expenses 3,267 2,818 Office expenses 1,335 1,882 Postage and freight 130 641 Printing and stationery 816 1,634 Provision for annual leave 0 5,111 Provision for severance pay 0 0 Rent 49,823 10,201 Repairs & maintenance 457 66 Salaries and wages - administration 124,755 182,207 Salaries and wages - operations 181,537 165,000 Security costs 132 0 Staff expenses 17,622 (99,690) Staff recruitment and relocation 2,589 23,677 Superannuation 5,382 4,059 Transport - taxi/bus 149 169 17 PACIFIC AVIATION SAFETY OFFICE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in Australian dollars Restated Account Name 2015 2014 2014 Travel 79,095 94,097 Water expenses 473 162 World Bank Activities A.0 1 Governance and Management Specialist 31,035 0 A.02 Financial Sustainability Analysis 168,442 0 A02.1 Marketing & Communication Planner 38,206 6,337 A02.2 Legal Specialist 121,621 0 A06.0 Recruitment of New Staff 67,292 23,045 A07.0 Training 99,169 7,665 A08.0 Project Implementation Support (TFSU) 116,275 0 A08.1 Project coordinator 50,294 12,685 A08.2 PASO steering committee 203,522 34,150 A07.0 Workshop PASO states - 11,579 B.01 Regulatory Specialist (CLOSED) 17,186 52,227 B.01.1 Regulatory Specialist 27,586 - B.02 Register of Inspectorate Pool 44,240 B.03 Training - RPI Candidates 59,235 - Incremental operating cost 1,404 46,160 Bank charges 2,070 844 Total Expenses 1,746,941 898,012 Net Surplus/(Deficit) 132,555 (17,465) 18 PACIFIC AVIATION SAFETY OFFICE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in A ustralian dollars Account Name 2015 WB IDA H883 Other Funds DR(+)/CR(-) DR(+)/CR(-) DR(+)/CR(-) Income Members subscriptions 279,670 279,670 Service revenue 440,987 440,987 Grant income - Vanuatu Government 224,405 224,405 Grant income - Taiwan 0 0 Grant income - AusAID 0 0 Grant income - WB 757,243 757,243 0 Sundry income - 51,670 51,670 1,753,974 757,243 996,731 Other income Foreign exchange gain - unrealised 4,859 - 4,859 Foreign exchange gain - realised 117,799 - 117,799 Interest received 2,788 - 2,788 Proceeds on sale of fixed assets 75 - 75 1,879,496 757,243 1,122,253 Expenditure Accounting fees 0 - 0 Advertising and promotion 1,056 - 1,056 Auditor's remuneration 10,140 10,140 Bank charges 1,732 - 1,732 Communication expenses 6,012 - 6,012 Consultancy expenses 106,061 - 106,061 Council expenses 19,748 - 19,748 Depreciation 12,882 - 12,882 Entertainment expenses 314 - 314 Foreign exchange loss - realised 0 - 0 Foreign exchange loss - unrealised 0 - 0 information technology expenses 16,495 - 16,495 Insurance 3,800 - 3,800 Interest paid 39,108 - 39,108 Late Charges 0 - 0 Light and power 13,235 - 13,235 Miscellaneous expenses 1,218 - 1,218 Motor vehicle expenses 3,267 - 3,267 Office expenses 1,335 - 1,335 Postage and freight 130 130 Printing and stationery 816 816 Provision for annual leave 0 0 Provision for severance pay 0 0 Rent 49,823 - 49,823 Repairs & maintenance 457 - 457 Salaries and wages - administration 124,755 - 124,755 Salaries and wages - operations 181,537 - 181,537 Security costs 132 - 132 Staff expenses 17,622 - 17,622 Staff recruitment and relocation 2,589 - 2,589 Superannuation 5,382 - 5,382 Transport - taxi/bus 149 - 149 Travel 79,095 - 79,095 Water expenses 473 473 19 PACIFIC AVIATION SAFETY OFFICE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER2015 Expressed in Australian dollars Account Name 2015 WB IDA H883 Other Funds DR(+)/CR(-) DR(+)/CR(-) DR(+)/CR(-) World Bank Activities A.0 1 Governance and Management Specialist 31,035 31,035 - A.02 Financial Sustainability Analysis 168,442 168,442 - A02.1 Marketing & Communication Planner 38,206 38,206 - A02.2 Legal Specialist 121,621 121,621 - A06.0 Recruitment of New Staff 67,292 67,292 - A07.0 Training 99,169 99,169 - A08.0 Project Implementation support (TFSU) 116,275 116,275 - A08.1 Project coordinator 50,294 50,294 - A08.2 PASO steering committee 203,522 203,522 - B.01 Regulatory Specialist (CLOSED) 17,186 17,186 - B.02 Register of Inspectorate Pool 44,240 44,240 - B.03 Training - RPI Candidates 59,235 59,235 - B.01.1 Regulatory Specialist 27,586 27,586 Incremental operating cost 1,404 1,404 - Bank charges 2,070 2,070 Total Expenses 1,746,941 1,047,578 699,363 Net Surplus/(Deficit) 132,555 (290,335) 422,890 20 PACIFIC AVIATION SAFETY OFFICE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in A ustralian dollars COMPREHENSIVE INCOME AND EXPENDITURE ACCOUNT 2014 (re-stated) Account Name Restated 2014 WB IDA Other Funds H883 Income Members subscriptions 279,620 279,620 Service revenue 231,832 231,832 Grant income - Vanuatu Government 79,936 79,936 Grant income - Taiwan 25,861 25,861 Grant income - AusAID 23,918 23,918 Grant income - WB 186,687 186,687 - Sundry income - 40,882 - 40,882 868,735 186,687 691,995 Other income Foreign exchange gain - unrealised 0 - - Interest received 1,865 1,865 Proceeds on sale of fixed assets 9,947 - 9,947 Total Income 880,547 186,687 693,860 Expenditures Accounting fees 0 - 0 Advertising and promotion 0 - 0 Auditor's remuneration 9,846 - 9,846 Bank charges 1,313 - 1,313 Communication expenses 7,101 - 7,101 Consultancy expenses 146,917 - 146,917 Council expenses 0 - 0 Depreciation 10,038 - 10,038 Entertainment expenses 173 - 173 Foreign exchange loss - realised 47,091 - 47,091 Foreign exchange loss - unrealised 881 - 881 Information technology expenses 17,416 - 17,416 Insurance 9,527 - 9,527 Interest paid 24,698 - 24,698 Late Charges 52 - 52 Light and power 10,140 - 10,140 Miscellaneous expenses 26,093 - 26,093 Motor vehicle expenses 2,818 - 2,818 Office expenses 1,882 - 1,882 Postage and freight 641 641 Printing and stationery 1,634 - 1,634 Provision for annual leave 5,111 - 5,111 Provision for severance pay 0 - 0 Rent 10,201 - 10,201 Repairs & maintenance 66 - 66 Salaries and wages - administration 182,207 - 182,207 Salaries and wages - operations 165,000 - 165,000 Security costs 0 - 0 Staff expenses (99,690) - (99,690) Staff recruitment and relocation 23,677 - 23,677 Superannuation 4,059 - 4,059 21 PACIFIC AVIATION SAFETY OFFICE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2015 Expressed in Australian dollars WB IDA Account Name Restated 2014 Other Funds H883 Transport - taxi/bus 169 - 169 Travel 94,097 - 94,097 Water expenses 162 - 162 World Bank Activities . A02.1 Communication planner 6,337 6,337 - A06.0 Recruitment of New Staff 23,045 23,045 - A07.0 Training 7,665 7,665 - A08.1 Project coordinator 12,685 12,685 - A08.2 PASO steering committee 34,150 34,150 - A07.0 Workshop PASO states 11,579 11,579 - B.O1 Regulatory Specialist 52,227 52,227 - Incremental operating cost 46,160 46,160 Bank charges 844 844 - Total Expenses 898,012 194,693 703,319 Net Surplus/(Deflcit) (17,465) (8,005) (9,459) 22