Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697816209906.pdf (Fiji)
Ministry of Forestry ANNUAL REPORT 2018-2019 Parliamentary Paper No.
81 of 2021 Ministry of Forestry Annual Report For Period 01st Aug 2018 – 31st July 2019 2 Ministry of Forestry|Annual Report 2018-2019 REFERRAL LETTER Rear-Admiral (Ret’d) Honourable Josaia V. Bainimarama Prime Minister and Minister for iTaukei Affairs, Sugar Industry, Foreign Affairs and Forestry Office of the Prime Minister Suva Dear Sir, I am pleased to present to you the Annual Report of the Ministry of Forestry for the period 1 August 2018 to 31 July 2019, for presentation to Parliament in accordance with the require- ments of the Financial Management Act 2004.
Yours Sincerely, G. P. N. Baleinabuli Permanent Secretary for Forestry and Acting Permanent Secretary for Fisheries 3 Ministry of Forestry|Annual Report 2018-2019 TABLE OF CONTENTS Acronyms Permenant Secretary’s Foreward Contribution of the Forestry Sector to Fiji’s Economy Agency Overview Core Business Corporate Profile Legislative Framework Organisation Structure Our Functions and Services Forestry Programmes and Projects Budget Allocation and Expenditure Report on Performance Strategic Priority 1: Cohesive legislation, regulation, policy, guidelines and compliance Strategic Priority 2: Enhance sustainable forest management (SFM) frameworks and implementation of SFM practices Strategic Priority 3: Capacity Building (Ministry and Stakeholders) Strategic Priority 4: Stewardship Strategic Priority 5: Forest financing Strategic Priority 6: Organisation Effectiveness Appendices 6 7 8 10 10 37 39 43 44 47 4 Ministry of Forestry|Annual Report 2018-2019 ACRONYMS CSOs EMA FAO FBOS FCPF Civil Society Organisations Environment Management Act Food and Agriculture Organisation Fiji Bureau of Statistics Forest Carbon Partnership Facility FFHCOP Fiji Forest Harvesting Code of Practice FNPF GDP GWE Fiji National Provident Fund Gross Domestic Product Gross Wage Earner HTMB Harvest Tree Manually - Basic MOF MOU MRV Ministry of Forestry Memorandum of Understanding Measuring, Reporting, Verification NBSAP National Biodiversity Strategy and Action Plan NFI PSP RDF National Forest Inventory Permanent
 Sample Plots Reforestation of Degraded Forests REDD Reducing Emissions from Deforestation and Forest Degradation RL Right License SDGs Sustainable Development Goals SDP SEG TPAF Strategic Development Plan Standard Expenditure Group Training and Productivity Authority of Fiji 5 Ministry of Forestry|Annual Report 2018-2019 PERMANENT SECRETARY’S FOREWORD I am honoured to present the annual report for the Ministry of Forestry for the financial year August 2018 through to July 2019. iv.
The finalisation of the Ministry’s Strategic Development Plan; The Ministry received a total budget of $17.07 million, which is an increase of $1.0 million (6.5%) when compared to the 2017-2018 financial year.

The Ministry utilised $14.87 million (87.1%) for the implementation of the Ministry’s programmes and projects.

In the course of this financial year, and with the resources provided, the Ministry was able to deliver most of its outputs effectively.

Some of the major achievements include: i.


The submission and endorsement, without conditions, of the Emission Reduction Programme (ERP) Document and the Readiness-Package by the Forest Carbon Partnership Facility (FCPF) Carbon Fund; ii.

During the royal visit of the Duke and Duchess of Sussex to Fiji, the hosting of the Duke of Sussex to the Colo-i-Suva (CIS) Park and the official opening of the upgraded CIS Park, which received the Queen’s Commonwealth Canopy Award; iii.
The launching of the 4 million trees in 4 years (4MT4Y) initiative by the President of Fiji, His Excellency Jioji Konrote; v. The signing of the Memorandum of Understanding (MOU) with Ministry of Employment, Productivity and Industrial Relation (MEPIR); and among other things, vi.
The signing of the MOU with the Fiji National Provident Fund (FNPF); I would like to sincerely acknowledge the former Minister for Forestry, Honourable Osea Naiqamu, for his excellent leadership and championing the national tree planting initiative to all Fijians.
I also commend the efforts of all staff of the Ministry, including the support of relevant stakeholders, in raising the forestry agenda and ensuring that the forestry sector continues to support livelihoods for all Fijians while contributing to Fiji’s economic growth.

G. P. N. Baleinabuli Permanent Secretary for Forestry 6 Ministry of Forestry|Annual Report 2018-2019 CONTRIBUTION TO FIJI’S ECONOMY Fiji has a forest cover of 1.1 million hectares which accounts for 60% of Fiji’s landmass.
Natural forests account for 86.6% of the 1.1million ha forest cover, followed by softwood plantations at 6.8% and hardwood plantations at 6.6%.

Not only are Fiji’s forests sources of timber (which mainly drive the forest sector economically), forests also provide food, shelter and other sources of livelihood for forest dependents.

They also protect the environment and its biodiversity, prevent soil erosion and enhance air and water quality.
Due to the multifunction of trees and forests, they contribute to the development and growth of other sectors, subsequently contributing to Fiji’s overall economic growth.

Contribution to Fiji’s Real Gross Domestic Product (GDP) Based on the Real GDP official statistics published by the Fiji Bureau of Statistics (FBOS), the forestry and logging industry contributed $26.1 million (0.2%) to Fiji’s real GDP in 2018.
However, it is important to note that forestry work goes beyond Table 1: Forestry Sector contribution (2015-2018) just the raising of seedlings and the harvesting of trees.

If one is to look at the forestry sector in totality, forestry contributes to the growth of many other industries, such as the Manufacturing and Tourism industries.

In combining the contributions of forest related activities, the forestry sector contributed $158.7 million (1.4%) to national real GDP by the end of 2018.
The major contribution of $68.6 million was from the sawmilling and planing of wood activity, followed by the forestry and logging industry, which contributed $26.1 million.

Sawmilling and the manufacture of other wood products, listed in Table 1 below, are forest-related activities and products classified under the Manufacturing industry, which is the leading contributor to growth in Fiji’s real GDP.
In classifying these activities, FBOS follows the Fiji Standard Industrial Classification (FSIC) 2010, which is aligned with the United Nations International Standard Industrial Classification (ISIC) Revision 4.
Industry by economic activity 2015 2016 2017 2018 FJD [Millions] % Contribution to Real GDP FJD [Millions] % Contribution to Real GDP FJD [Millions] % Contribution to Real GDP FJD [Millions] % Contribution to Real GDP Forestry and logging 43.4 0.5 24.2 0.2 22.5 0.2 26.1 Sawmilling and planing of wood Manufacture of products of wood, cork, straw and plaiting material Manufacture of pulp, paper and paperboard Manufacture of corrugated paper and paperboard and of containers of paper and paperboard Manufacture of other articles of paper and paperboard Manufacture of Furniture Total 56.0 15.7 1.3 14.9 20.7 15.2 167.2 Source: Fiji Bureau of Statistics, Ministry of Forestry|Annual Report 2018-2019 Employment in the Forestry Sector Due to the nature of the work in the forestry sector, a significant amount of informal employment is created in which people, particularly resource owners, are employed as casuals in forest-based operations.
Through its Annual Employment Survey, FBOS captures only the formal employment statistics, highlighting that a total of 880 people were employed in the sector in 2018.

The employment breakdown according to the main economic activity is highlighted in Table 2 below.

Table 2: 2018 Formal Employment in Forestry No.

Main Economic Activity 1.

2.

3.

4.

5.


Nursery Tree cultivation and Conservation Logging Log processing and Sawmill Government1 Total Number of Employees 14 444 72 210 140 880 Source: Fiji Bureau of Statistics, 2021 Note: The last pay week of June is the reference date that rules how FBOS captures a snapshot of the formal sector employment in both the private and public sectors.
Exports In terms of exports, and using the Harmonised Commodity Description and Coding System (HS2) classification adopted by FBOS, wood and wood products contributed $94.6 million in export revenue for the year 2018.

The major export commodity was woodchips, which generated $78.5 million.

Domestic exports of wood products accounted for 8% of total domestic exports.
Table 3: Exports of Wood Products (2015-2018) Domestic Exports of Wood Products Product 2015 2016 2017 2018 Value FJ$ Million Total Domestic Export 1,150.97 1,136.09 1,192.86 1,174.97 Wood and articles of wood 93.19 61.77 25.63 94.62 Of which - Wood in chips or particles 46.64 29.63 9.97 78.46 - Mahogany 38.50 25.68 8.59 6.85 Source: Fiji Bureau of Statistics, 2021 1 Employment number for Government is sourced from the Ministry of Economy.
2 Harmonised Commodity Description and Coding System – an international nomenclature for the classification of products.

It enables participating countries to categorise traded goods on a common basis for customs purposes.
8 Ministry of Forestry|Annual Report 2018-2019 AGENCY OVERVIEW CORE BUSINESS The Ministry is a regulatory and service organisation responsible for the national forestry sector through the following functions: • • • • • • • Formulate and implement forest strategies and policies; Provide and administer the regulatory function under the Ministry’s respective legislation and regulations; Monitor and evaluate current strategies, policies and deliverables; Develop and promote effective training, communication and awareness and extension advisory services; Strengthen community and industry networks and support frameworks; Maintain international bilateral and multilateral commitments; and Undertake applied research for sustainable forest resource management practices and product development.
CORPORATE PROFILE Vision To be a Leader in Sustainable Forestry Mission Sustainable Forests, Our Future Values • Responsible - We will discharge our duties with accountability • Resolute - We will discharge our duties with determination and be firm and fair in our decisions • Respectful - We will be sensitive to individual needs and the diversity of views • Resourceful - We will be practical, creative, effective and efficient and maintain uncompromising integrity in our daily work • Reliable - We will do and deliver what we have committed and promised to our customers 9 Ministry of Forestry|Annual Report 2018-2019 LEGISLATIVE FRAMEWORK The Ministry of Forestry is guided in its daily operations by the following legislation, regulations, policies, plans and manuals.
Table 4: Organisational Management Legislation Regulations Policies Plans Manuals Civil Service Regulation 2017 • Finance Instructions 2010 Fiji Procurement Regulations and Amendments 2010 General Order 2011 Terms and Conditions of Employment for GWE’s 2010 • MOF Training Plan • MOF HR Manual • MOF Asset • MOF Finance Manual Management Plan • Ministry’s Risk • MOF Strategic Management Policy Development Plan • MOF Operational Plan • • • • • • • Constitution of the Republic of Fiji 2013 Financial Management Act 2004 Tax Administration Decree 2009 • • • Fiji Health and Safety at Work Act 1996 Civil Service Act 2016 Act 2 of 2016 – Amendment to PSC Act Employment Relations Promulgations 2007 and Employment Relations (Amendment) Act 2016 Table 5: Organisational Management Legislation Regulations Policies Plans Manuals • • • Fiji Forest Harvesting Code of Practice (FFHCOP) Sandalwood Manual Nursery Manual Fiji Forests Policy 2007 • REDD+ Policy 2011 Forest Certification Fiji Climate Change Policy 2012 Draft Energy Policy 2013 • • • Fiji Rural and Land Use Policy 2005 National Biodiversity Strategy and Action Plan (NBSAP) Green Growth Framework (GGF) National Development Plan (NDP) National Adaptation Plan (NAP) 2018 • • • • • Forest Act 1992 National Research Bill Environment Management Act (EMA) Biosecurity Promulgation Native Land Trust Act 2012 (amended) • • • • • • • • • • • • Forest (Sawmills) Regulations 1968 Forest (Preservative Treatment) Regulation 1992 Forest Guard Regulations 1975 Forest Fire Prevention
 Regulation 1972 Environment Management (EIA Process) Regulation 2007 Environment Management (Waste Disposal and Recycling) Regulation 2007 10 Ministry of Forestry|Annual Report 2018-2019 ORGANISATION STRUCTURE Minister for Forestry Permanent Secretary for Forestry Conservator of Forests Director Corporate Services Executive Director Operations and Services Executive Director (Research and Development) Director West Director Training PAO Director North Director TUR and PD.
PEPO Director C/E Director SRD Director Forest Resource Assesment and TMA Business Manager PAS IT 11 Ministry of Forestry|Annual Report 2018-2019 OUR FUNCTIONS AND SERVICES The Ministry of Forestry has the following functional divisions/sections.
Table 6: Functional Divisions Functional Divisions/Sections Functions and Services Silviculture Research and Development Timber Utilisation Research and Product Development Education and Training (FTC and TITC) Forest Resource Assessment and Conservation Forest Parks and Nature Reserves Forest Harvesting, Monitoring, Control and Surveillance at Divisional Level (N, W and C/E Divisions) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Forest health, bio-security and bio-diversity Tree species development Seed and nursery technology Natural forest management Research publications Research and investigation Quality management systems/timber grading Timber trade Sawmilling Preservation Product research and development Training (Technical, Academic, SFM, Forest Warden, Bio-diversity Conservation, Protected Area Management) Skills development Capacity building Wood processing Monitoring Information System (MIS)/Geographic Information System (GIS) Resource inventory Resource assessment Mapping and surveys International conventions Environment management REDD+ Readiness and Emission Reduction Programme Establishment, management, maintenance and enhancing of the use of forest parks and reserves Forest education and resource conservation promotion Restoration ecology and watershed and amenities planting Facilitate sustainable log supply system for the timber industries Facilitate development of community-based initiatives for forest-based projects Provide advisory services and raise awareness Administer timber
 processing and inspectoral services Issue of harvesting licenses Afforestation, Reforestation and Agroforestry Provide extension/advisory services and raise awareness Reforestation and afforestation activities • • • Promote Agroforestry Corporate Services Division Planning, Policy, Monitoring and Evaluation, Statistics and Executive Support • • • • • • • • • • • • • • • • • • • • • • • • • • • Human Resource Management Learning and development Recruitment and selection Performance management Occupation, Health and Safety Finance Performance budgeting and monitoring Payroll management Payments and Revenue collection Reporting and Financial statement Financial controls Board of Survey Asset Management Buildings and equipment Fleet Information Technology and Management IT infrastructure Databases Registry Policy research and analysis Economic planning Annual reporting Statistics Trade and investment facilitation Monitoring and Evaluation (Plans and Projects) Secretariat services (cabinet and parliamentary processes, MOU/MOA) Communications and public relations 12 Ministry of Forestry|Annual Report 2018-2019 FORESTRY PROGRAMMES AND PROJECTS Table 7: Forestry Programmes and Projects No.
Programme Activity 1 2 Policy and Admin 1.

General Admin and Accounts 2.

Economic Policy, Planning and Statistics Forestry 1.

General Admin 2.

Forestry Conservation and Management Services 3.

Training and Education 4.

Silviculture Research, Resource Assessment and Development 5.

Timber Utilisation Research and Product Development 6.

Extension and Advisory Services (Reforestation and Afforestation) 7.

Monitoring, Control and Surveillance (Harvesting and Logging) 8.
Forest Parks, Recreation and Nature Reserves Projects within each Programme and Activity • • • • • • • • • • • • Upgrade of Office and Quarter Forest Subsidy International Tropical Timber Organisation (ITTO) Reducing Emissions from Deforestation and Forest Degradation (REDD+) Purchase of harvesting machines Sandalwood Development Programme Research Consultancy and Seed Bank Research and Development of Wood and Non-wood Species Utilisation of Wood Reforestation of Degraded Forests and Reforestation of Indigenous Species Pine Woodlot Logging Package.
Purchase of equipment - Lakeba Pine Scheme • Monitoring, Control, Surveillance • Upgrade of Colo-i-Suva Forest Park 13 Ministry of Forestry|Annual Report 2018-2019 BUDGET ALLOCATION AND EXPENDITURE Table 8: MOF Budget Allocation SEG SEG PARTICULARS Established Staff Government Wage Earners Travel and Communications Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditures TOTAL OPERATING Capital Construction Capital Purchase TOTAL CAPITAL 13 Value Added Tax TOTAL EXPENDITURE 2017-2018 Allocation [FJD] 2018-2019 Allocation [FJD] 3,888.5 1,370.4 463.2 1,296.4 1,126.8 794.5 2,817.0 11,756.8 2,270.0 1,364.0 3,634.0 630.0 16,020.8 A total of $17.07 million was allocated to the Ministry, of which $14.87 million (87.1%) was utilised for the implementation of the Ministry’s programmes and projects, leaving a balance of $2.19 million at the end of July 2019.
Graph 1: Budget Allocation and Expenditure 4,011.2 1,492.4 535.5 1,416.0 1,187.0 979.5 3,009.1 12,630.8 2,617.5 1,150.0 3,767.5 667.3 17,065.6 14 Ministry of Forestry|Annual Report 2018-2019 REPORT ON PERFORMANCE The Ministry finalised its Strategic Development Plan (SDP) this financial year which highlights the four strategic goals and six strategic priorities detailed in the table below.

The SDP is aligned to the National Development Plan (NDP) requirements and global commitments.
This Plan will guide the work of the Ministry until 2030, and initiatives channelled for implementation within the Ministry’s annual operational plans.
Table 9: MOF Strategic Goals and Priorities STRATEGIC GOALS (SG) 1 2 Establish sustainable life cycle management of forest resources in Fiji Improve the socio-economic impact of forests 3 Contribute positively to the global environment 4 Substantially improve service delivery STRATEGIC PRIORITIES (SP) 1 Cohesive legislation, regulation, policy, guidelines and compliance SP1 is geared towards articulating a consistent, long-term approach with regard to legislation, regulation, policy, and compliance mechanisms associated with forests and forestry.
2 Enhance sustainable forest management frameworks and implementation of Sustainable Forest Management (SFM) SP2 is about establishing clear, sustainable implementation mechanisms for forest strategies to be effective over a long period of time.

3 Capacity building (Ministry and Stakeholders) SP3 focuses on bringing theory into practice.
The Ministry will lead the way in analysing capacity and capabilities necessary to achieving the desired outcomes of the sector; engage its personnel, infrastructure, partners and communities in developing research and knowledge necessary to achieve the best outcomes for now and the distant future.

4 5 Stewardship SP4 is about commitment to stewardship of national resources, as well as the moral obligation towards global environmental responsibilities and commitments.
Forest financing SP5 is all about looking at, developing, improving and/or implementing financial strategies and mechanisms to support the sustainable management of forests.

6 Organisation effectiveness SP6 focuses on the Ministry itself.

It looks at the capacity and the capability of the Ministry to be able to produce what it has set as its goals.

It looks at efficiency, in terms of personnel, processes, and includes information management.
It ensures that the Ministry is positioned to attain what it has set out to achieve, within the context of people, information and infrastructure.

15 Ministry of Forestry|Annual Report 2018-2019 Strategic Priorities 16 Ministry of Forestry|Annual Report 2018-2019 Strategic Priority 1: Cohesive legislation, regulation, policy, guidelines and compliance Ministerial support and policy advice Cabinet Submission Three Cabinet Submissions were made on the following topics: a.
Reducing Emissions and Enhancing Livelihoods in Fiji: Amendments to the Letter of Intent.

b.

Development of the Emissions Reductions Programme- document (ERP-D) “Reducing Emissions and Enhancing Livelihoods in Fiji.

c. 4 Million Trees in 4 Years Initiative.

Planted Forest Policy • The Ministry continued work on the Planted Forests Policy, with assistance from the Food Agriculture Organisation (FAO).
The aim of the Policy is to increase forest areas under managed plantations to reduce pressures on Fiji’s natural forests.

• Consultations were conducted with all relevant stakeholders and a draft Policy was developed with FAO consultants.
Ministerial statements and speeches • Eleven Ministerial statements and speeches were developed and delivered in Parliament and at various events attended by the Minister for Forestry Six Ministerial and responses were delivered in Parliament by the Minister for Forestry.
developed • Graph 2: Statements/Speeches delivered by the Minister for Forestry Development and Review of legislation, regulations, policies and plans Finalisation of Forest Bill and Relevant Regulations • In this financial year, the Ministry continued to pursue the finalisation and endorsement of the Forest Bill [Bill No.

13 of 2016], which was a review of the Forest Act 1992.
The Bill is the outcome of a number of stakeholder consultations, with the view of revising the 1992 Forest Act to include recent developments within the Forest Sector in addition to supporting the full implementation of the Fiji Forest Policy 2007.

The Bill has been read twice in Parliament.

• Once the Bill is endorsed, relevant regulations already drafted will also be finalised.

Sandalwood Strategy and Regulation • The Ministry worked on developing drafts in collaboration with stakeholders.
Rural Forest Fire Strategy • A draft strategy was developed with the assistance of the Pacific Community (SPC) and the relevant stakeholders such as the Ministry of Agriculture.

Timber Export and Import Guideline • The guideline was completed and disseminated.

National Plywood Standard • Due to current gaps in the local plywood industry, the development of a national plywood standard was recommended.
• The responsibility in developing standards lies with the Commerce department of the Ministry of Commerce, Trade, Tourism and Transport (MCTTT).

• With budget allocation of $20,000.00, a consultant was engaged during the financial year to undertake a feasibility study to determine the need to either develop a totally new standard or adopt the Australian Standard currently used as a guideline for processing local plywood.
• The main reason is to address the increase in the importation of substandard material by enforcing the standard as a requirement for all importation of plywood into the country.

• A feasibility study report was developed and submitted to the Ministry by the consultant.

Strategic Development Plan • The Ministry’s SDP, which was developed in consultation with relevant stakeholders, was finalised and published this financial year.
Copies were distributed to all staff and stakeholders and also uploaded onto the Ministry’s website.

Mangrove Management Guideline • A draft guideline was developed on the work and lessons learnt from the six communities/project sites of the International Tropic Timber Organisation (ITTO) project.

This Guideline was developed in collaboration with the Pacific Community (SPC).
17 Ministry of Forestry|Annual Report 2018-2019 Strategic Priority 2: Enhance sustainable forest management (SFM) frameworks and implementation of SFM practices Forest resource assessment Forest Change Analysis Four officers travelled to CSIRO’s Data61 Facility in Perth, Australia, where they were trained in forest change analysis.

The training was conducted by a World Bank Consultant and a CSIRO Officer.
Officers were introduced to manual cloud masking and classification of forests using training vectors.

The software used in this training were ERMapper, RStudio and Python Scripts in Command Prompt.

The officers successfully classified and cloud masked Viti Levu images from 2005 to 2017 during this exercise.

Harvest Area Reports (HARs) • HARs submitted by all Divisions; North, West and Central/Eastern.

• Total HARs submitted are illustrated in Graph 3.


Graph 3: Harvested Area (ha) Graph 4: Harvest Plan Harvest Plan Maps Five plan maps were produced with a total revenue of $1,098.90.

Harvest plan by area (hectares) is illustrated in Graph 4.

Mataqali Nabaulevu received the most areas, as the applicant requested three coupes3 Harvested Maps to be produced, with different areas.

Mataqali Narakura (Gracesealand) has two coupes maps, while the rest received one coupe map each.
500 400 300 200 100 0 465 210 112.2 108.2 5.5 Mat.

Nabaulevu Mat.

Tacini Yav.

Tabariki Azam Khan Ali Gracesealand Investment Ltd 18 Ministry of Forestry|Annual Report 2018-2019 Mapping Requests • 21 mapping requests were attended to and successfully completed.

This included both internal and external requests.

Volume Estimates 44 volume estimate applications were received and attended to.
Permanent Sample Plots (PSP) • The PSP team undertook the fourth round of measurement of the PSP plots in the two major islands and Taveuni.

28 plots were measured, of which 16 were in Vanualevu and 12 were in Vitilevu.

• Inventory • Pine inventories were conducted for Kadavu and Lakeba to • determine the standing volume of forest areas.

118 plots were measured in Lakeba and 11 pine schemes in Kadavu.

• Two other inventories were conducted for Mataqali Vatuvula and Savura Dam.
3 Coupe - A small area of forest within a compartment that is harvested in a single operation 19 Ministry of Forestry|Annual Report 2018-2019 Forest parks and reserves Upgrade of Colo-i-Suva Forest Park Major renovations were conducted this financial year and includes the following: a.

Upgrading of park entrance and construction of security booth.

b.
b.

Renovation of “Bures” c. Construction of toilets, bathrooms and changing rooms d. Picnic area with tables and benches e. Track repairs f. Construction of steel railings g. Installation of rubbish bins a b c d e f g 20 Ministry of Forestry|Annual Report 2018-2019 Prince Harry unveiling the QCC Award plaque.

Duke of Sussex unveils Queen’s Commonwealth Canopy (QCC) Award The nation was honoured to host the Duke and Duchess of Sussex on the occasion of their 16-day royal visit to Fiji.
The Ministry of Forestry was also honoured to host Prince Harry, the Duke of Sussex, who made a special visit to the Colo-i-Suva Park, where he unveiled the plaque to commemorate the Queen’s Commonwealth Canopy Award, received by the Park in the previous financial year.

With His Royal Highness planting a dakua seedling at the Park, this very special occasion was also marked with a most appropriate remembrance.

Prince Harry with one of the wood carvers.

Prince Harry planting a “dakua” tree.


21 Ministry of Forestry|Annual Report 2018-2019 Colo-i-Suva Visitor Numbers and Revenue Generated A total of 40,291 visitors visited the Colo-i-Suva Park by end of July 2019, generating a total revenue of $101,741.00.
Graph 5: Analysis for Revenue and Visitors 32,392.50 23,986.00 22,653.50 22,709.00 12,550 8,972 9,264 9,505 REVENUE VISITORS e u n e v e R 35,000.00 30,000.00 25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00 QUARTER 1 QUARTER2 QUARTER 3 QUARTER 4 A new sign board was also erected for the Nadarivatu Nature reserve.

Maintenance, Management of Forest Parks and Reserves Boundary maintenance was carried out in 5 forest reserves.
Boundary maintenance is a core output for the Division in ensuring clear demarcation of reserve boundaries under its lease conditions.

It also includes marking of all forest and nature reserves boundaries.
Table 10: Maintenance on Reserves No Reserves visited Activities Qaranibuluti Nature Reserve Erection of signboards Nadarivatu Nature Reserve Qoya Forest Reserve Boundary demarcation and erection of signboard Field inspection of Tengy Cement Factory Colo-i-Suva Forest Reserve Forest demarcation Taveuni Forest Reserve Village awareness Staff carrying out boundary maintenance and marking at the Qaranibuluti and Nadarivatu nature reserves.
The dilapidated Qaranibuluti Nature reserve signboard on the left; and the new one which was constructed by the Parks and Reserves officers.

Before After 22 Ministry of Forestry|Annual Report 2018-2019 Law Enforcement – licensing, monitoring and compliance Table 14: Summary of total volume sawn and round timber treated for 2018-2019FY Quarter Hazard Level Timber Product Volume Treated (m3) Harvesting Operations 142 harvesting licenses (right licenses) were issued: a.

45 licenses for Northern Division, b.


63 licenses for Central Eastern Division, c. 34 licenses for Western Division.

produced volume to Total financial amounted year log in 2018-2019 439,780.0 m3 Graph 6: Log production Aug 2016-Jul 2019 Sawmilling Operations 47 sawmill licenses were issued (19 static, 28 portable).
Table 11: Sawmill licenses by Division Division Static Mill Portable Mill Total Central Eastern Northern Western Total 5 7 7 19 10 9 9 28 Sawmill Return by Division A total of 156,849.24m3 of Log input, with 66,173.33m3 at 42%.
recovery output, average stood rate the Table 12: Sawmill return by Division Division Input Output Recovery Central Eastern North West Total 33,677.463 29,568.664 93,603.113 156,849.24 14,144.53 12,715.50 39,313.30 66,173.33 42% 43% 42% 42% Treatment Plant Operations Out of the 27 treatment plants in Fiji, 19 were licensed for operation this financial year.
Table 13: Treatment plants 2018-2019 Status Licensed Non-Operational Application pending Total Number 19 4 4 1 2 3 4 H2 H3 H4 H5 Sawn Timber (Indoor) Sawn Timber (Outdoor) Round Wood (Fence Post) Round Wood ( FEA Poles) 3,841.046 43,848.185 1,881.04 222.975 Total 49,793.246m³ 1,267 timber samples were analysed by the Ministry which generated a total revenue of $23,312.80.
Table 15: Timber samples analysed Quarter Quarter 1: Aug 2018-0ct 2019 Quarter 2: Nov 2018 – Jan 2019 Quarter 3: Feb-April 2019 Quarter 4: May-July 2019 Total Samples Analysed Total Revenue 310 258 248 451 $5,704.00 $ 4,747.20 $4,563.20 $8,298.40 TOTAL 1,267 $23,312.80 Table 16: Treated timber samples and Hazard classes Hazard Level Total No.

of Samples No.

Passed No.


Failed % Fail % Pass 15 16 16 47 H2 H3 H4 H5 274 611 146 236 274 611 107 231 Total 1,267 1,223 0 0 39 5 44 0.00% 0.00% 27% 2% 29% 100% 100% 73% 98% 171% Treated Timber Samples and Hazard Classes The above table indicates the number of samples that have passed and failed the copper loading requirements, according to the specific preservative hazard treatment level.

Few treated samples failed H4 and H5 treatment level.
From the inspection and assessment that were undertaken, the section identified that failed treatment was the result of: • Treatment for Post and Poles products are not dried to the required Moisture Content (MC).

With high MC, chemicals will have very little penetration during treatment.

• Treatment plant operators have very little understanding of the required retention and chemical topping up for H4 and H5 treatment.
• Treatment plant operators are not achieving the full pressure treatment required for H4 and H5 treatment, which resulted in low penetration and undercharged timbers.

23 Ministry of Forestry|Annual Report 2018-2019 Procurement and handing over of vehicles for assistance to maritime operations.
Corrective measures now undertaken by the Ministry to address the above issues include: • Conducting drying and preservatives refresher course as most of the treatment operators are not trained by the Division and lack knowledge in preservative treatment operation.

• Preservation section will spend a day with all saw millers who have little understanding of treating timber.
This process will include preservative treatment, checking and assisting in the treatment operation from loading until timbers are being removed from cylinder for 24 hours dripping period.

Monitoring, Compliance, Surveillance • Two rounds of national monitoring of harvesting operations were conducted under the MCS project to ensure compliance as measured against the FFHCOP 2013.

• Divisional quarterly monitoring and inspections were conducted for all sawmills, treatment plants and harvesting operations.
Improvement notices were issued where necessary and non-renewal of licenses were relayed to companies that were non-compliant with relevant regulations.

• Support for Maritime Operations • Pine woodlot logging project – four portable sawmills were • All treatment operators to be trained and certified by the purchased, inclusive of fuel, oil and preservative chemicals.

Ministry before they carry out treatment operations.
• Maritime pine project – two vehicles were procured (one 4 x 4 vehicle and one 7-ton logging truck) to assist in maritime operations.

24 Ministry of Forestry|Annual Report 2018-2019 Planting of the first tree (Masiratu specie) by His Excellency and the Minister for Forestry during the 4MT4Y initiative launch.
Reforestation and afforestation Mass Tree Planting Initiative With a target of 800 hectares for the Reforestation of Degraded Forests (RDF) Project, a total of 684,417 seedlings (1,632.31ha) were planted by the end of July 2019.

The breakdown of species planted by Divisions is highlighted in Table 17.

This financial year, The 4 Million Trees in 4 Years (4MT4Y) initiative was launched in January 2019 by the President, His Excellency, Jioji Konrote.
Table 17: Tree planting by Divisions Species Categories Coastal Exotic Fruit trees Indigenous Mahogany NTFPs Pine Sandalwood Teak Central Eastern Northern Western Grand Total Grand Total 200,932 269,174 214,311 684,417 His Excellency with the staff of the Ministry of Forestry after the 4MT4Y Initiative launch.
25 Ministry of Forestry|Annual Report 2018-2019 Agroforestry Four agroforestry plots were established in the following locations.

Table 18: Agroforestry plots No.


Location Hectares (Ha) Species 1 2 3 4 Vuma Village, Levuka Dawasamu Secondary School Vunivaivai, Nakelo Yale Kadavu- collaboration with USP 1.0 Vesi, Citrus, Kavika, Tavola, Dakua Makadre, Guava 0.8 Lemon, Pineapple, Vesi, Vutu, Dawa 2.0 Native and fruit seedlings 4.0 Native and fruit seedlings Action Against Desertification (AAD) Project Under this project, the Ministry worked with FAO and project partners to achieve the project objectives.
This financial year, the following outputs were achieved.

No.

Activities Achievements 1.

Conduct Trainings 2.

3.

4.

5.

6.

7.


Develop Landuse maps Tree planting Establish backyard gardens Establish other alternative livelihood and income generation projects Support local groups and businesses Awareness and knowledge development 15 trainings conducted (35% women) on seed technology and nursery, SFM, SLM, Conservation and Biodiversity, Agroforestry and other livelihood projects One map developed – Levuka village, Delaikoro 265 hectares restored through enrichment planting.
This contributed to the tree planting initiative of the Ministry.

Six school backyard gardens and 132 household backyard gardens were established.

90 individuals were employed.

350 women were involved.

Seeds collected and sold for income.

Beekeeping, Vanilla farming and other forest products (seeds/ seedlings/planting materials/ handicrafts).

10 youth groups were supported.

Women’s group from Nasavu village sold seeds to construct a village bus stop.
Four articles, one video documentary and four radio programmes were produced.

Tree planting by a student from Naivaka Primary School.

Enrichment planting in degraded pine areas.

Bus stop at Nasavu village which was constructed from the sale of seeds by the Nasavu Women’s group.

AAD - Beekeeping training.


26 Ministry of Forestry|Annual Report 2018-2019 Research and development - silviculture research Seed Collection, Processing and Sowing for Seedling Production A total of 1,414.6kg of seeds were collected and processed by the silviculture research division.

Out of these processed seeds, 97,200 seeds were sowed for seedling production.
Table 19: Seed collection, processing and seedling production Species Type Seeds collected (Kg) Seeds processed – dry weight (Kg) Indigenous 1,062.4 163.8 60,172 Sandalwood Coastal Exotic Total Dawasamu Secondary School 64.8 54.2 61.7 1,414.6 0.8 9.6 54.1 2.4 229.9 No.

of seeds sowed for seedling production Vesi, Citrus, Kavika, Tavola, Dakua Makadre, Guava Lemon, Pineapple, Vesi, Vutu, Dawa a. Nadarivatu This assessment was done in collaboration with USP-IAS.
The result indicates insect diversity in the different trapping methods used.

It was noted that the insect order Coleoptera was mostly collected from leaf litter, rather than from the normal method of collection such as light trap.

Graph 7: Insects Collected s t c e s n i f o .

o N 100 90 80 70 60 50 40 30 20 10 0 Coleoptera Othoptera Hemiptera Lepidoptera Hymenoptera Leaf Litter Tree Beating Light Trap Malaise 92 0 4 0 0 21 10 0 0 5 33 24 1 5 3 17 0 5 20 17 13,172 3,045 20,811 97,200 b.
Upper Tuva Catchment BIORAPS results from the upper Tuva catchment area shows the types and abundance of insects present that are known to be good forest health indicators.
Graph 8: Insect Data for Upper Tuva Catchment Forest Health Biological Rapid Assessments (BIORAPS) were undertaken to report on the baseline assessment and current state of the Biological Diversity within the areas of natural forest reserves designated for the purpose of protection for biodiversity conservation, as consented to by the landowning communities.
This year BIORAPS were conducted by the forest health team in the following areas: 1 4 7 10 14 Hymenoptera Coleoptera Orthoptera Hemiptera Aranea Opilipnes 100 27 Ministry of Forestry|Annual Report 2018-2019 • 20 PSP recording and maintenance were completed for compartments 1, 2, 5, 6 and 10.

• DLT Monitoring field training for Central / Eastern division was conducted in November 2018.

• Harvesting in compartments 11 and 12.


Research Consultancy and Seed Bank Two consultants were engaged by the Ministry to conduct a review of the work of the Silviculture Research Division and the need to develop a seed bank or tree seed centre.

The review was completed this financial year and the findings and report were presented to management.

Sandalwood Project With a $100,000 budget allocation, the following activities were conducted by the Sandalwood Project team: 1.
Sandalwood market survey and consultation; 2.

Sandalwood inventory programme and registration of farmers; 3.

Sandalwood planting, and 4.

Monitoring of project sites.


Tree Improvement – Assessment of Trial Plots Assessments were conducted for the following trial plots and reports were compiled accordingly: a. Yavuna Nausori Highlands – Sandalwood and mixed species b. Drasa Alternative Species Trial – Eucalyptus, Pine and Acacia c. Vaqia, Ba – Mixed species A new Agarwood research trial plot was established with the Fiji Women’s Growers Association at Toga, Rewa, in November 2018.

A total of 54 Agarwood seedlings were planted in rows of two.
Treatments of NPK, Aglime or Organic manure were applied to each two-row planting.

The results of the assessments conducted in February 2019 are shown in the table below.

Table 20: Assessment on agarwood trial plot Treatment Survival Survival % Maximum Mean Mini 1.

Organic 2.

Aglime 3.


NPK 12 18 16 66.67% 28.0cm 16.50cm 100% 19.5cm 12.77cm 88.89% 22.1cm 13.28cm 9.0cm 6.1cm 9.0cm Natural Forest Management – Nakavu Operation This is the third year of operation at the Nakavu Pilot Project, based on the volume and species recovery after 22 years of logging.

The different logging intensities were still maintained, but the new diameter limit table to be adopted will be based on the log volume derived from the first logging rotation.
This year, the team worked on the following activities in the various compartments in Nakavu: • Harvesting plan for compartment 10 was finalised.

• Carbon inventory for compartments 1 and 3 was completed.

• • • • • • • • • • • • Nakavu Project Pilot site.

28 Ministry of Forestry|Annual Report 2018-2019 Wood Pellet Production and Research on Calorific Content of Pellets One Mini pellet machine was procured this year.

Pellets were tested for their calorific contents at the University of the South Pacific.
Results are shown in Graph 10.

Research and development – timber utilisation Research on Lesser Known Species Applied research, studying the properties and potential uses of lesser known species (LKS) continued during the financial year with a total of 31 species identified in Nakavu.

With a total budget of $150,000.00, a total of eight species were extracted out of the 31 species identified.

Research activities that were carried out included: 1.
Assessing the physical properties (standing tree features, sapwood/heartwood colour); 2.

Wood working properties (sawing, nailing, dressing, etc.

); 3.

Veneer (peeling properties); 4.

Seasoning and 5.

Natural durability.

Results of the log input and output for the eight species are shown in the graph below.

Mini-pellet machine operated by a staff member.


Graph 9: LKS Vs Log Input/Output (April- July) ) 3 m ( e m u l o V 8 7 6 5 4 3 2 1 0 Input (m3) Output (m3) Bausa 2.141 0.719 Bulu M Dalovoci Damabi Kaunigai Maqo 2.761 1.177 1.476 0.675 0.852 0.329 4.812 1.662 0.547 0.231 Sole 0.601 0.187 Vutukana 7.51 1.471 Standard size wood pellets.

A total of 160 stakes were installed (20 stakes per specie).

The newly installed species are: 1.

Sole 2.

Vutukana 3.

Kaunigai 4.

Dalovoci 5.

Bulu M 6.


Maqo ni Veikau 7.

Bausa 8.

Damabi Connecting the firing wire to the sample.

Stakes on the ground for trial testing.

Insertion of the capsule (which contains the sample) in the combustion calorimeter.

29 Ministry of Forestry|Annual Report 2018-2019 Graph 10: Calorific results of five local tree species 25 20 15 10 5 0 18.20 18.16 20.73 19.07 18.00 2 4 8 4 .

0 5 7 8 4 .

0 5 9 8 4 .

0 7 9 4 .

0 7 9 4 .


0 Masiratu Vutukana Kauvula Yasiyasi Kaudamu Mass (g) Calorific Value (MJ/kg) In addition to the calorific value analysis, the students also conducted research on the firewood properties of Kauvula.

The firewood research is still in progress as the research team in Nasinu is currently drying Kauvula to the required moisture content levels.
Upgrade of Research Exhibition Room • The exhibition room in Nasinu was renovated and improved, as it is a popular field visit site for many educational and vocational institutions, as the displays portray the various timber processes, from harvesting, sawmilling, treatment, to construction and various timber products.

• Display boards with summaries of sectional roles were also • included.
In addition to this, worn out displays were removed, and some of which have been repaired and re-polished by the workshop staff.

• Upgrading of the exhibition room will continue in the next financial year.

Workshop staff re-polishing some of the old displays from the Exhibition Room.

Weighing of firewood samples at the Engineering Lab (USP) Procurement of Metal Tape Embosser Machine The Metal Tape Embosser machine was procured from Australia in November 2018.
The machine enables tagging to be done on metal strips and these strips are attached to timber samples which are placed in trial sites for testing and assessment.

A total of 160 stakes were tagged using this new machine.

The metal tape embosser machine.

Metal strips ready to tag research samples.


30 Ministry of Forestry|Annual Report 2018-2019 Strategic Priority 3: Capacity Building (Ministry and Stakeholders) Advanced Certificate in Applied Woodcraft Technology The Advanced Certificate in Applied Woodcraft Technology programme was introduced, with 12 trainees (3 females and 9 males) graduating from the programme this financial year.
Permanent Secretary for Forestry and Acting Director Training with graduates Industrial Attachment for Students 32 students from various academic institutions were engaged as part of their industrial attachment.

Forestry technical trainings Accreditation of Forestry Training School The Forestry Training Centre in Colo-i-Suva received its accreditation certificate on 07 December, 2018 from the Fiji Higher Education Commission (FHEC).
Technical Forestry Training The Training Division of the Ministry conducted 39 short- term technical trainings.

Table 21: Forestry trainings conducted Types of technical training No.

of trainings in 2018-2019 FY No.
of Participants Female Male Total Chainsaw Mechanic Harvest Tree Manual - Basic (HTMB) Training Harvesting Supervision Biodiversity Conservation and Protected Management (BCPM) Training Code Awareness Training Sustainable Forest Management (SFM) Training Report Writing Training Total 3 3 30 33 24 6 810 816 5 2 4 98 102 4 53 57 2 4 39 43 2 30 56 86 1 - 25 25 39 51 1,111 1,162 Graph 10: Training participation by gender 31 Ministry of Forestry|Annual Report 2018-2019 Corporate training Local Training 30 different local trainings were conducted and were attended by an average of 11-12 staff for each training.
These were trainings identified through the Civil Service Reform Unit of the Ministry of Civil Service, local institutions and mandatory training under the TPAF Grant and Levy Scheme.
Overseas Training 46 officers attended overseas training this financial year.. Graph 11: Distribution of Training - local Graph 12: Distribution of Training - overseas Graph 13: Number of Officers attended training from August 2018 - July 2019 400 350 300 250 200 150 100 50 0 358 46 Local Training Overseas Training 32 Ministry of Forestry|Annual Report 2018-2019 Strategic Priority 4: Stewardship Sustainable trade environment Trade Facilitation The following trade licenses/permits were issued by the Ministry: a.
196 export licenses were issued, with a total value of FJ$65.8 million.

Pine chips were the biggest contributor, with a value of $47.6 million.

b.

176 import permits were issued, with a total value of FJ$7.8 million.
Graph 14: Export and Import of Wood Products Graph 15: Value of Imports by Country of Origin (FJ$Millions) Graph 16: Value of Exports by Country of Destination (FJ$Millions) 33 Ministry of Forestry|Annual Report 2018-2019 Business and investment Guideline The 2018-2019 Forestry business and investment guide was published and disseminated to all Divisional offices, stakeholders and the general public who visit the forestry offices, trade show booths and other interagency shows/consultations.
Trade Assistance and Support for Duty Exemptions • Four companies were assisted with the provision of technical advice and assistance with their applications for a license.

12 companies were issued with support letters from the Ministry to assist their applications to Ministry of Economy and Customs Office for duty exemptions.

• REDD+ Readiness – Consultations Conducted Table 22: Consultations conducted Name Date No.
of Participants Institutions Stakeholder Consultation events National REDD+ Steering Committee (NSRC) 23 July, 2018 3 30 Seed Capital Revolving Fund (SCARF) Programme • • 20 applications were received by the Ministry for vetting.

12 applications were submitted to the Fiji Development Bank for further vetting and final decision.
Climate change adaptation and mitigation Emission Reduction Programme (ERP) Document The Emission Reduction Programme Document (ERPD) and the Readiness Package were submitted and endorsed, without conditions, by the FCPF Carbon Fund of the World Bank in July 2019.

The Fijian delegation was led by the Minister for Forestry, Hon.

Osea Naiqamu.
REDD+ Awareness Oct 2018 30 TLTB, TAB (Conservation officers and Roko Tuis), YMST, Fiji Pine, MOF, Mamanuca Environment Society Oct 2018 GHG inventories workshop organised by CFRN and supported by MOF – REDD+ Unit 20 MOF, SPC, MOA, MOE - Climate Change Division, SPC/GIZ REDD+ progress update to Sigatoka HODs Sept 2018 10 Roko Tui Nadroga/ Navosa, Ministry of Agriculture, TLTB, PA Nadroga/Navosa Inception meeting for Divisional Working group – West 16 Jul 2018 13 Ministry of Agriculture, REDD+ pilot site resource owner reps, Ministry of Waterways and Environment, USP, Ba Provincial Office, Grace Trifam (Faith- based NGO) 20 Representatives from REDD+ Steering Committee, Civil Society Organisation (CSO) Platform Minister for Forestry, Hon.
Osea Naiqamu, leads Fiji’s delegation to present the ERPD to the FCPF Carbon Fund of the World Bank in Washington D.C Benefit Sharing Mechanism Workshop March 2019 REDD+ Readiness Activities The study on Carbon Rights, which evaluated the current status of carbon rights in the country and suggested options as to who owns the carbon, and Benefit Sharing Mechanism, which assessed the existing systems of benefit sharing and identified a possible mechanism for REDD+ benefit sharing, were both completed this financial year.
Divisional Level REDD+ Working Group Meeting (west) 18 Jun 2019 14 Ministry of Forestry, Ministry of Agriculture, Ministry of Rural and Maritime, Fiji Pine, TLTB, Ministry of Environment 34 Ministry of Forestry|Annual Report 2018-2019 Name Date No.
of Participants Institutions Capacity building/training and awareness Emalu interim assessment and evaluation workshop Consultation with Ridge to Reef Project on ERP Consultation with TLTB Consultation with Ministry of Economy on ERP Consultation with ITaukei Affairs on ERP ERP Consultation Workshop REDD+ Training of Trainers, Western Division REDD+ Training of Trainers, Northern Division Feb 2019 30 Representatives from Nakoro, Navitilevu and Draubuta village, Roko Tui Nadroga/ Navosa, SSV rep, SPC/GIZ Feb 2019 4 REDD+ Unit and R2R team – Ministry of Waterways and Environment Feb 2019 5 REDD+ Unit, TLTB.
Jan 2019 Jan 2019 Feb 2019 7 REDD+ Unit, Budget Team, Procurement Team.

4 REDD+ Unit, Min.

of iTaukei Affairs.

30 MOF, TLTB, MTA, LLEE, Solicitor General’s Office, Lands and Mineral Resources, Min.

of Agriculture, Min.

of Women, CSO Platform.

Dec 2018 20 Min.

of Forestry, Min.

of Agriculture, Mamanuca Environment Society, Yaubula Support Management Team Mamanuca.

Nov 2018 25 Min.

of Forestry, Min.

of Agriculture, Min.


of Rural and Maritime, iTaukei Affairs Board, TLTB, NatureFiji- MareqetiViti, Soqosoqo Vakamarama, C3 (NGO).

25 MoA, CSO platform – SSVM, Emalu landowner rep, Grace Trifam, MoF 25 Ministry of Forestry divisional level staff, Private Plantation Companies, and NGOs.
Oct 2018 Jun 2019 REDD+ Training of Trainers, Central Division Training on Geographical Information System at the divisional level (5 days) Global, regional & national partnerships Memoranda of Understanding Three MOUs were signed locally • MOU with the Ministry of Employment, Productivity & Industrial Relations (MEPIR) was finalised and signed on 13 December, 2018.

• MOU with Fiji National Provident Fund (FNPF) was signed on 5 June, 2019.
These partnerships will ensure information sharing, enhance monitoring and strengthen compliance level of all forest operations.

• The third MOU was between MOF, Fiji Development Bank (FDB) and iTaukei Affairs Board (TAB) sealing their partnership for tree planting and adopting a community from each Division.

The first community adopted is Silana village in Tailevu.

MOU signing with MEPIR.

MOU signing with FNPF.

MOF partners with FDB and TAB on tree planting initiative.
35 Ministry of Forestry|Annual Report 2018-2019 Implementation of MOU with Indonesia • Wood carving training was sponsored by the Indonesian Government representatives who visited the country as part of the implementation of the MOU with Indonesia.

• A total of twenty wood carvers from the Western Division participated in the programme, with the guidance of two wood carving experts from Bali, Indonesia.

• Participants were also provided with wood carving tools to assist them with their businesses.
Participants of the woodcarving training and a sample of their work.

Livelihood assistance Housing Rehabilitation Due to the devastating impacts of a series of tropical cyclones experienced by Fiji, the Ministry worked with affected communities to utilise their forest resources to rebuild and repair their homes.

The following results were achieved in this financial year: • • • Kadavu – 86 housing structures produced.
Gau – 17 houses (9 complete houses and 8 extensions) Six other islands/villages were also assisted, including Koro Island, Lomaiviti, Onoi-Lau, Lau, Tubeinasolo, Ba, Navutulevu, Serua , Dogotuki, Macuata Namalata, Kadavu.

36 Ministry of Forestry|Annual Report 2018-2019 Strategic Priority 5: Forest Financing There was no initiative/activity planned for this strategic priority for the financial year under review.
Strategic Priority 6: Organisation Effectiveness Human resource HR Policies, Plan, Guidelines The following HR documents were drafted and aligned to the Ministry of Civil Service (MCS) standards: • HR Manual • Recruitment and Selection Policy • Discipline Policy • • Performance Management Policy • Training and Development Policy Job Evaluation Policy HR management The Ministry had a staffing strength of 242 (85.8%) out of the 282 approved posts.
Table 23: MOF workforce Programme Established GWE Project Total Approved Post Staffing Strength Approved Post Staffing Strength Approved Post Staffing Strength Total Approved Staff Posts by Prog.

Total Staffing Strength by Prog.

1 – Policy and Admin 2 - Forestry TOTAL 21 130 151 19 120 139 2 95 97 2 70 72 0 34 34 0 31 31 23 259 282 21 221 242 Recruitment and Selection Graph 17: Trend of Recruitment - August 2018 - July 2019 350 300 250 200 150 100 s n o i t i s o p f o .
o N 50 0 Total number of positions Number of Vacant post Number advertised (Vacant/Contract Expiry/Redeployed) Number filled Series1 288 65 125 38 JEE Implementation Ten positions were evaluated and submitted to the Job Evaluation Leadership Team ( JELT) for moderation of evaluation and in accordance with the Job Evaluation and Civil Service Remuneration Setting Guideline.

The new gradings were all approved for all these positions.
Staff Turnover Staff turnover for the financial year August 2018 to July 2019 was recorded through resignations, retirement, termination and non-renewal of contracts.

Tabulated below are the numbers and distribution as mentioned above; Graph 18: Staff turnover 2018-2019 37 Ministry of Forestry|Annual Report 2018-2019 Asset management Information Technology Annual Procurement Plan (APP) The 2018-2019 Annual Procurement Plan was developed and submitted to Ministry of Economy.
Website Development The IT unit worked on developing a new website for the Ministry with the assistance from the ITC Department.

Asset Register and Board of Survey (BOS) • The Ministry satisfactorily completed an annual BOS to verify the existence and condition of assets recorded on the asset register.

This included all Divisions and Ministry stations.

• BOS value for 2018-2019 financial year amounted to $635,448.94.
Upgrade of Staff Quarters A total number of 85 Quarters were occupied by MOF Staff, with five Quarters being vacant.

Server and Database Management and Maintenance • Management and maintenance of all databases of the Ministry (TRS, FEMS, PSP, TI, NFI, NFMS).

• A sawmill database was also developed this financial year.

Networking, Hardware and User support • The IT team conducted quarterly monitoring and maintenance around all stations in the three Divisions (North, Central/Eastern, and West).
Installation of biometric systems in forestry stations.

• • Network cabling upgrade from CAT 5 to CAT 6.

Vacant Remarks Reports, plans and implementation Total No of Institutional Quarters 41 14 13 10 4 1 1 4 88 0 Quarters No.

4 was burnt down in November 2018 1 Repaired in 2013 while 1 only Malau quarters needs repair 1 Repaired in 2015 0 Only the 8 Institutional Quarters were repaired in 2018, while 2 pool quarters were not repaired.
1 To be repaired in 2019/2020 0 Repaired in June 2019 0 Repaired in 2015 and is occupied by Roko Tui 2 vacant quarters need major repair works.

To be repaired in 2019/2020 2 5 Ministry Plans • • 2018-2019 Operational plan developed and published.

2019-2020 Operational Plan was drafted and submitted with the Ministry’s budget request.

2017-2030 Strategic Development Plan finalised and published.
• • All Project Annual Work plans were submitted to Ministry of Economy at the beginning of the financial year.

Monitoring and Evaluation • Quarterly monitoring of Operational Plan activities.

• 4 QPPR were completed and submitted to Ministry of Economy.

Annual Reports Two annual reports (2014 and 2015) for the then Department of Forestry were reviewed by the Ministry as they were returned from Parliament.
Public awareness and promotion Location Coloisuva Labasa Forestry FTC Nasinu Forestry Vunimaqo Navua Forestry Nadarivatu Lautoka/Lololo TOTAL Finance Finance Manual 2018-2019 Finance Manual was developed and circulated to all staff.

Press Releases / Newsletters • • 67 press releases were compiled.

Four quarterly issues of the ‘Forestry Focus’ newsletter were produced.
Budget Utilisation and Monitoring Weekly updates were provided to management through submission of HOD reports on the budget utilisation rates and issues to be addressed.

38 Ministry of Forestry|Annual Report 2018-2019 Ministerial Tours A total of 111 villages/stakeholders were visited by the Hon.

Minister for Forestry and the supporting Forestry team this financial year, to champion the national tree planting initiative and to also create awareness about the work of the Ministry.
Exhibition and Trade shows Northern Division Western Division Central/Eastern Division Bua and Saqani – nine villages Two pine stations Ba Province – 12 villages Naitasiri Province – 41 villages Nadroga Province – 13 villages Tailevu Province – 18 villages 4 pine stations Kadavu Province – 12 villages 11 29 71 The Ministry participated in all Government Services Expos to promote the forestry agenda and educate the general public on the work carried out by the Ministry.
39 Ministry of Forestry|Annual Report 2018-2019 Appendices 40 Ministry of Forestry|Annual Report 2018-2019 APPENDICES APPENDIX 1: AUDITED FINANCIAL STATEMENT FOR AUG 2018-JUL 2019 OFFICE OF THE AUDITOR GENERAL Promoting Public Sector Accountability and Sustainability through our Audits 6-8th Floor, Ratu Sukuna House 2-10 McArthur St P. 0.
Box 2214, Government Buildings Suva, Fiji Telephone: (679) 330 9032 E-mail: info@auditorgeneral.gov.fj Website: http://www.oag.gov.fj File Ref: 436/1 12 February 2021 The Honorable Osea Naiqamu Minister for Forestry Ministry of Forestry Level 3 Takayawa Building TOORAK MINISTRY OF FORESTRY AUDITED FINANCIAL STATEMENTS- 31 JULY 2019 Audited financial statements for the Ministry of Forestry for the year ended 31 July 2019 together with my audit report on them are enclosed.
Particulars of the errors and omissions arising from the audit have been forwarded to the management of the Ministry for necessary actions.
Yours sincerely, Ajay Nand AUDITOR-GENERAL cc: Permanent Secretary for Forestry 41 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2019 42 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2019 TABLE OF CONTENTS INDEPENDENT AUDITOR’S REPORT MANAGEMENT CERTIFICATE STATEMENT OF RECEIPTS AND EXPENDITURE APPROPRIATION STATEMENT TMA- MANUFACTURING ACCOUNT - TIMBER UTILIZATION DIVISION TMA- TRADING ACCOUNT - TIMBER UTILIZATION DIVISION TMA- PROFIT AND LOSS STATEMENT - TIMBER UTILIZATION DIVISION TMA - BALANCE SHEET - TIMBER UTILIZATION DIVISION STATEMENT OF LOSSES NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 1 43 Ministry of Forestry|Annual Report 2018-2019 OFFICE OF THE AUDITOR GENERAL Promoting Public Sector Accountability and Sustainability through our Audits 6-8th Floor, Ratu Sukuna House 2-10 McArthur St P. 0.
Box 2214, Government Buildings Suva, Fiji Telephone: (679) 330 9032 E-mail: info@auditorgeneral.gov.fj Website: http://www.oag.gov.fj INDEPENDENT AUDITOR’S REPORT To the Minister for Forestry Report on the Audit of the Financial Statements Opinion I have audited the financial statements of the Ministry of Forestry (Ministry) which comprises the Statement of Receipts and Expenditure, Appropriation Statement, Statement of Losses, TMA Manufacturing Account, TMA Trading Account, TMA Profit and Loss Statement and TMA Balance Sheet for the financial year ended 31 July 2019, and notes to the financial statements, including a summary of significant accounting policies.
In my opinion, except for the effects of the matters discussed in the Basis for Qualified Opinion paragraphs, the accompanying financial statements of the Ministry are prepared, in all material respects, in accordance with the Financial Management Act and Finance Instructions 2010.

Basis for Qualified Opinion Operating Fund Account 1.

Expenditures totaling $302,301 were not recorded in the Statement of Receipts and Expenditure for the year ended 31 July 2019.
This amount relate to unrecorded expenditures for accountable advance but were not cleared from the Revolving Fund Account as at 31 July 2019.

Consequently, total expenditure of $14,873,741 for the year ended 31 July 2019 is understated by $302,301 .

2.

There is an unreconciled variance of $1,025,547 between the FMIS general ledger and the Ministry’s payroll report for both Established Staff and Government Wage Earners.
Consequently, I was unable to establish the accuracy of the Established Staff Government and Wage Earners balances recorded in the Statement of Receipts and Expenditure for the year ended 31 July 2019.

3.

There is an unreconciled variance of $167,998 between the FMIS general ledger for revenue received from Native Timber Measurement and the report extracted from the Timber Revenue System.
Consequently, I was unable to establish the accuracy of the revenue recorded under Native Timber Measurement of $318,442 in the Statement of Receipts and Expenditure for the year ended 31 July 2019.

Included in the FMIS general ledger are accounts receivable of $677,339, accrued expenses and deferred income of $1,739 and accounts payable of $5,767, which had been carried forward from previous years.

The Ministry was unable to provide appropriate documentations to support these balances.
As a result, I was unable to verify the completeness and accuracy of the balances and also unable to determine whether any adjustments might have been necessary and any corresponding adjustments to the elements making up the statement of income and expenditure.

4.

Trading and Manufacturing Account 5.

There is an unreconciled variance of $112,699 between the TMA bank re-conciliation and the general ledger balance for Cash at Bank.
Consequently, I am not able to confirm the accuracy and completeness of the Cash at Bank balance of $1,338,610 recorded in the TMA Balance Sheet as at 31 July 2019.

6.

The Ministry, with the approval of the Ministry of Economy, transferred a sum of $2,000,000 in 2016 to the Trading and Manufacturing Activity (TMA) account from its operating budget for the purpose of salvaging logs after Tropical Cyclone Winston.
Although funds amounting to $228,886 was utilised in 2019, deferred income was not adjusted and the balance of $2, 198,548 remained the same since 2017.

The cash at bank balance of $1,338,610 recorded in the TMA Balance Sheet was not sufficient to support the remaining deferred income balance of $2, 198, 548.

7.

The Ministry recorded maintenance and operation expenses of $285,071 in the TMA Profit and Loss Account, which included the cost of a logging truck of $218,349.
As a result, the maintenance and operations expenses recorded in the TMA Profit and Loss Account is overstated by $218,349 for the year ended 31 July 2019.

8.

The Ministry recorded Accounts Receivable of $73,857 in the TMA Balance Sheet as at 31 July 2019.

The Ministry was unable to provide appropriate documentations such as debtors’ aging listing, subsidiary debtor’s ledgers and account reconciliation statements to support the accounts receivable balance.
As a result, I was unable to verify the completeness and accuracy of the 44 Ministry of Forestry|Annual Report 2018-2019 balance and unable to determine whether any adjustments might have been necessary to the elements making up the TMA Profit and Loss Account and TMA Balance Sheet.

I have conducted my audit in accordance with International Standards on Auditing (ISA).
My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report.
I am independent of the Ministry in accordance with the International Ethics Standards Board for Accountant’s Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to my audit of the financial statements in Fiji and I have fulfilled my other ethical responsibilities in accordance with these requirements and the I ESSA Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Emphasis of Matter I draw attention to the following: • Trading and Manufacturing account continues to operate at loss since 2010 which has resulted in excess of liabilities over assets of $662,879 in the TMA Balance Sheet as at 31 July 2019.

• Note 5 to the financial statements states that TMA sales of $144,086 included a reimbursement of TMA wages of $55, 718.

My opinion is not modified in respect of these matters.
Other Matter Non-compliance with the requirements of the Finance Manual in relation to procurement of goods and services, retirement of accountable advance, cash management, carried forward balances and unsubstantiated Accounts Receivables balances have recurred despite the recommendations to improve.
Responsibilities of the management and those charged with governance for financial statements The management are responsible for the preparation of the financial statements in accordance with the Financial Management Act, Finance Instructions 2010 and the Finance (Amendment) Instructions 2016, and for such internal control as the management determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Those charged with governance are responsible for overseeing the Ministry’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements My 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 auditor’s report that includes my opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA 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 the financial statements.
As part of an audit in accordance with ISA, I exercise professional judgement and maintain professional skepticism throughout the audit.

I 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 my 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 Ministry’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management of Ministry.

Communicate with those charged with governance regard ing, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
Ajay Nand AUDITOR-GENERAL Suva, Fiji 12 February 2021 45 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY MANAGING CERTIFICATE FOR THE YEAR ENDED 31 JULY 2019 We certify that these financial statements: (a) fairly reflect the financial performance of the Ministry for the year ended 31 July 201 9; and (b) have been prepared in accordance with the requirements of the Financial Management Act 2004 and Finance Instructions 2010.
Pene Baleinabuli Permanent Secretary Ministry of Forestry Date: Maciu Waqa Manager Finance Ministry of Forestry 46 Ministry of Forestry|Annual Report 2018-2019 MlNISTRY OF FORESTRY STATEMENT OF RECEIPTS AND EXPENDITURE FOR THE YEAR ENDED 31 JULY 2019 REVENUE STATE REVENUE Native Timber Measurement AGENCY REVENUE Miscellaneous Revenue TOTAL REVENUE EXPENDITURE OPERATING EXPENDITURE Established Staff Government Wage Earners Travel and Communication Maintenance and Operations Purchase of Goods and Services Operating Grants and Transfers Special Expenditure TOTAL OPERATING EXPENDITURE CAPITAL EXPENDITURE Capital Construction Capital Purchases TOTAL CAPITAL EXPENDITURE Note 3 (a) 3 (b) 3 (c) 3 (d) 3 (e) 3 (f ) 3 (h) 7 3 (i) 2019 ($) 2018 ($) 318,442 286,381 235,332 553,774 220,354 506,735 4,308,597 1,480,597 636,073 1,207,464 1, 183,384 2,027,687 11,819,146 2,216,573 297,193 2,513,766 3,985,149 1,777,129 448,305 1,099,416 931,733 1,021 ,839 9,980,390 2,072,004 642,000 2,714,004 Value Added Tax 540,829 606,5 12 TOTAL EXPENDITURE 14,873,741 13,300,906 47 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 JULY 2019 SEG Item Budget Estimate Appropria- tion Changes (Note 4) Revised Estimate Actual Expenditure Lapsed Appropria- tion ($) ($) ($) ($) ($) Operating Expenditure Established Staff Government Wage Earners Travel and Communication 4,014,204 1,489,401 535,538 363,721 148,959 102,586 4,377,925 1,638,360 4,308,597 1,480,597 638,124
 636,073 Maintenance and Operations 1,408,040 (199,814) 1,208,226 1,207,464 Purchase of Goods and Services 1,195,004 (11 ,039) 1,183,965 1,183,384 Operating Grants and Transfers 979,502 Special Expenditure Total Operating Expenditure 3,009,105 12,630,794 (4, 158) (18,099) 382, 156 975,344 975,344 2,991 ,006 2,027,687 963,319 13,012,950 11 ,819,146 1, 193,804 69,328 157,763 2,051 762 581 - Capital Expenditure Capital Construction 2,617,500 (24,382) 2,593,118 2,216,573 Capital Purchases 1,150,000 (302,807) 847, 193
 297,193 376,545 550,000 Total Capital Expenditure 3,767,500 (327,189) 3,440,311 2,513,766 926,545 13 Value Added Tax 667,300 (54,967) 612,333 540,829 71,504 17,065,594 - 17,065,594 14,873,741 2,191,853 48 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY TMA - MANUFACTURING ACCOUNT - TIMBER UTILIZATION DIVISION FOR THE YEAR ENDED 31 JULY 2019 2019 ($) 2018 ($) Opening Raw Materials Add: Purchases Less: Closing Raw Materials Raw Materials Used Add: Direct Labour Cost of Goods Manufactured transferred to Trading Account 211 ,881 - 211,881 74,691 137,190 70,969 208,159 178,541 190 178,731 211,881 (33,150) 126,060 92,910 49 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY TMA-TRADING ACCOUNT - TIMBER UTILIZATION DIVISION FOR THE YEAR ENDED 31JULY2019 Note 5 Sales Opening Finished Goods Add: Cost of Manufactured Goods Less: Closing Finished Goods Cost of Goods Sold Gross Profit/(Loss) transferred to Profit and Loss Statement 2019 ($) 2018 ($) 144,086 144,086 20,786 208, 159 228,945 45,323 183,622 (39,536) 445,554 445,554 21,770 92,910 114,680 20,786 93,894 351,660 50 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY TMA-PROFIT AND LOSS STATEMENT - TIMBER UTILIZATION DIVISION FOR THE YEAR ENDED 31 JULY 2019 2019 ($) 2018 ($) Income Gross profit / (loss) transferred from Trading Account (39,536) (39,536) 351,660 351,660 Total Income Expenses Maintenance and Operations Other Expenses Total Expenses Net Loss 285,071 - 285,071
 (324,607) 569,014 9,574 578,588 (226,928) 51 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY TMA - BALANCE SHEET - TIMBER UTILIZATION DIVISION AS AT 31 JULY2019 Assets Cash at Bank Raw Materials Accounts Receivable Finished Goods Total Assets Liabilities Accounts Payable Deferred Income Deposits and Deductions Total Liabilities Net Assets Equity TMA Accumulated Loss Net Loss for the year Transfers to Consolidated Fund Total Equity 2019 ($) 2018 ($) 1,338,6 10 74,691 73,857 45,323
 1,532,481 9,630 2,198,548 (12,818) 2,195,360 1,567,496 211,881 56,839 20,786 1,857,002 - 2,198,548 (3,274) 2,195,274 (662,879) (338,272) (568,118) (324,607) (892,725) 229,846 (662,879) (341,190) (226,928) (568,118) 229,846 (338,272) 52 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY STATEMENT OF LOSSES FOR THE YEAR ENDED 31 JULY 2019 Loss of Money There was no loss of money recorded for the financial year ended 2019.
Loss of Revenue There was no loss of revenue recorded for the financial year ended 2019.

Loss (other than money) In accordance with the Procurement Regulations 2010 (Clause 52), the Permanent Secretary for Economy approved the disposal and write-off of the following items upon submission of the recommendations of the Board of Survey Report.
Assets Motor vehicles Computer Equipment Field Equipment Total 2019 ($) 411,690 127,969 19,334 558,993 53 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2019 NOTE 1 The Ministry of Forestry is responsible for the formulation of policies to ensure the long term sustainability of Fiji’s forest resources, stimulate economic growth within Forestry sector and improve livelihoods for communities that rely on these resources.
REPORTING ENTITY The Ministry achieves this by ensuring a balance between resource utilization and resource conservation, and the development and aligrunent of its policies, strategies and structures in order to better address emerging issues, capture emerging opportunities, ensure effective and efficient service delivery to all our stakeholders.
The organization structure of the Ministry is being realigned to drive economic growth in the forestry sectors for the short and mid-term, and strategies for the mid to longer term to capture emerging opportunities such as wood energy ad carbon trading in the forestry sector.

The Ministry of Forestry operates a trading and manufacturing account that provides assistance in the processing and selling of pine products.
NOTE 2 STATEMENT OF ACCOUNTING POLICIES a) Basis of Accounting In accordance with Government accounting policies, the financial statements of the Ministry of Forestry is prepared under the cash basis of accounting.

All payments related to purchases of fixed assets have been expensed.

The financial statements are presented in accordance with the requirements of Section 71(1) of the Finance Instructions 2010 and Financial Management Act 2004.
The preparation and presentation of a Statement of Assets and Liabilities is not required under the current government policies, except for that of the Trading and Manufacturing Accounts.

b) Accounting for Value Added Tax (VAT) All income and expenses are VAT exclusive.

The Ministry on a monthly basis takes out VAT output on total money received for expenditure from Ministry of Economy.

VAT input on the other hand is claimed on payments made to the suppliers and sub- contractors for expenses incurred.
The VAT payment as per the Statement of Receipts and Expenditures relates to the VAT input claimed on payments made to the suppliers and sub-contractors for expenses incurred and VAT payments to Fiji Revenue and Customs Service (FRCS).

Actual amount paid to FRCS during the year represents the difference between VAT Output and VAT Input.
b) Comparative Figures Where necessary, amounts relating to prior years have been reclassified to facilitate comparison and achieve consistency in disclosure with current year amounts.

c) Revenue Recognition Revenue is recognised when the actual cash is received by the Ministry.
54 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2019 NOTE 3 For the purpose of comparison of results for the twelve months period covering 01 st August 2018 to 31st July 2019 with the corresponding financial period for the twelve months from 01st August 2017 to 31st July 2018.
SIGNlFICANT VARIATIONS (a) The total revenue collected for the financial year 2018/2019 was $553,774 compared to $506,735 in 2017/2018.

The increase in revenue of $47,039 or 9% was due to the strengthening of revenue collection in all divisions, monitoring and regular audits carried out to Forestry stakeholders in updating their outstanding accounts.

(b) The established staff cost was $4,308,597 for the financial year 2018/2019 compared to $3,985,149 for 2017/2018.
The increase in established cost of $323,448 or 8% was due to filling of vacant positions in the Ministry.

(c) The government wage earners staff cost was $1,480,597 for the financial year 2018/2019 compared to $1,777, 129 in 20 17/2018.

The decrease in government wage earners cost of $296,532 or 17% was due to slow in filling of GWE vacant positions in the Ministry.

(d) Travel and communication cost was $636,073 for the financial year 2018/2019 compared to $448,305 in 2017/2018.
The increase in travel and communication costs of $187, 768 or 42% was due to the l million tree initiative carried out from 01/01/19 to 31/12/19.

There was an increase in travel, subsistence and telecommunication costs on the land acquisition and consultation with forestry stakeholders, land owners, settlements and villages’ around Fiji.

(e) Maintenance and operation cost was $ 1,207,464 for the financial year 2018/2019 compared to $1,099,416 in 2017/2018.
The increase in maintenance and operation cost of $108,048 or 10% was due to the increase in activities for the 1 million tree initiative.

There was an increase in usage of fuel and oil for the vehicles, increased purchases on office stationeries, and increase in repairs and maintenance of Ministry owned vehicles.

(f ) Purchases of goods and services was $1,183,3 84 for the fmancial year 2018/2019 compared to $931,733 in2017/2018.
The increase in purchases of goods and services of $251,651 or 27% was due to the increase in purchase of stores equipment’s, purchase of stationaries and training expenses.

(g) Operating grants and transfers costs was $975,344 for the financial year 2018/2019 compared to $716,819 in 2017/2018.
The increase in expenditure of $258,525 or 36% was due to increase in grants payable to forestry stakeholders locally and including newly annual contribution grants to Asian Pacific Association of Forest Research Institution (APAFI) and International Union of Forest Research Organisation (IUFRO).

(h) Special expenditure cost was $2,027,687 for the financial year 2018/2019 compared to $1,021,839 in 2017/2018.
The increase in special expenditure of $1,005,848 or 98% increase was due to the increase in the activities for the l million tree initiative by the Government.

There was an increase in activities carried out for the REDD Plus programme, industry consultation, and product development and trade show programmes for 1 million tree initiative.

(i) Total Capital expenditure was $2,5 13,766 for the financial year 2018/2019 compared to $2,714,004 in 2017/2018.
The decrease in capital purchases of $200,238 or 7% was due to the discontinuation in one of the capital project related to purchasing of new harvesting machines.

55 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2019 NOTE 4: Appropriation movements were made through virement as follows: APPROPRIATION MOVEMENTS Viremcnt No.
From To Amount($) Approved by DV3201 DV3202 DV3203 DV3204 DV3205 DV3207 DV3208 V32001 V32002 V32003 SEG 4 SEG 4 SEG 4 SEG 4 SEG 4 SEG 13 SEG 7 SEG 1 SEG 8 SEG 9 SEG 13 SEG 3 - 13 V32004 SEG7 SEG 5 SEG 3 SEG 3 SEG 4 SEG 4 SEG 13 SEG 3 SEG 2 SEG 1 SEG 1 and2 SEG 1 and2 SEG 1 SEG 2 SEG 1 Permanent Secretary for Forestry 14,560.00 60,000.00 60,000.00 30,283.53 30,283.53 2,989.00 126.92 8,912.75 Permanent Secretary for Economy Minister for Economy 24,311.73 302,806.96 10.02 1,117,561.86 67,478.99 500.00 REASONS FOR SIGNIFICANT SAVINGS The savings in Special Expenditure (SEG 7) allocation was mainly due to savings of $951,645 under REDD+ allocation due to the fo llowing reasons: • The contract with Conservation International on the “Drivers of Deforestation” was extended, hence the delay in payment.
• Delay of work on the “Accuracy Assessment on Land Use/Cover” consultancy, which delayed payment.

• The “Free Prior and Inform Consent (FPIC) and Gender Guideline” consultancy was also delayed, which delayed payments.
The savings in Capital Purchase (SEG 9) allocation was due to savings of $550,000 in purchasing of harvesting machines due to tender in 2018/2019 financial year was not done on time hence there was no purchase of one wheel loader and one Bulldozer for harvesting of matured pine trees in the Maritime Islands.
The Ministry in note of the above proposed for a creation of new position for a Procurement Advisor in the 2019-2020 financial year and this has allowed the ministry to procure the proposed machines on time.

NOTE 5: TRADING AND MANUFACTURING ACTIVITY (TMA) TMA incurred loss of $324,607 for the financial year 2018/2019 compared to net loss of $226,928 in 2017/2019 financial year.

The losses were due to the decrease in the activities carried out at the saw-mill due to machine breakdown.
The TMA sales revenue includes $60,733 ofreimbursement from Fund 1 in relation to payment of wages.

The decrease in TMA expenditure was due to 16 TMA officers payroll being regularised under operations budget.
56 Ministry of Forestry|Annual Report 2018-2019 MINISTRY OF FORESTRY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2019 NOTE 6: The Ministry’s SGL account comprises of two accounts: STANDARD LIAIBILTIY GROUP 84 • Community based Restoration and Sustainable Management of Vulnerable Forests of Rewa Delta - A total of $178,478 was released from Ministry of Economy.

The Ministry utilised $79,559 and the balance of $98,919 was returned to Ministry of Economy.
Sandalwood Project - A total of $93,193 was released from Ministry of Economy.

The Ministry utilised $35,236 and the balance of $57,957 was returned to Ministry of Economy.

• NOTE 7: FOREST DEGRADATION (REDD+) PROJECT CONTRIBUTIONS TOWARDS REDUCING EMISSION FROM DEFORESTATION and The Government of Fiji through the Ministry of Forestry contributed $399,030 towards the REDD+ Project for 2019.
The details of the expenditure are as follows: Organisation and Consultation 1.1 Salary and Wages 1.2 Administration 1.3 Divisional Working Group 1.4 Stakeholders Meeting and Capacity Building 1.5 Overseas Training and Meeting 1.6 Development of Awareness and Promotional Materials Prepare the REDD+ Strategy 2.1 REDD+ Biodiversity Monitoring Framework 2.2 Emalu Lease Compensation 2.3 Reforestation, Agriculture Demoplot and Monitoring 2.4 Monitoring and Evaluation of Emalu Pilot Site Project 2.5 Alternative Livelihood Activities 2.6 Emalu Landowner Consultations 2.7 Community Consultations Total Amount($) 91,609 19,430 - 65,693 113,396 71,486 459 - 1,188 10,018 20,017 3,910 1,824 399,030 57 Ministry of Forestry|Annual Report 2018-2019 NOTES 58 Ministry of Forestry|Annual Report 2018-2019 Comments and enquiries should be directed to: The Permanent Secretary for Forestry Ministry of Forestry Level 3 Takayawa Building Suva, Fiji Telephone: (+679) 3301 611 Facsimile: (+679) 3318 692 Website: www.forestry.gov.fj 59 Ministry of Forestry|Annual Report 2018-2019 60 Ministry of Forestry|Annual Report 2018-2019