Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697770925361.pdf (Fiji)
iTaukei Trust Fund Board ANNUAL REPORT 2017 Parliamentary Paper Number has been allocated to your publication titled, 1.

PP.
No 69 of 2018 ITAUKEI TRUST FUND BOARD ANNUAL REPORT – 2017 Introduction Na ivakamacala taumada The iTaukei Trust Fund Board was established by the Fiji E a tauyavutaka na Matabose ni iLavo Maroroi ni iTaukei Government to foster advancement of the indigenous (MLMT) na Matanitu me qarava na vakatoroicaketaki ni Fijians and Rotumans by promoting initiatives that will itaukei e Viti kei Rotuma, me vukea na sasaga me sudrai better their standard of living and enhance appropriate cake na bula ka maroroya na itovo kei na idusidusi veiganiti cultural traditions and values.
Vision Statement ena vanua.

Na tatadra To be the prominent institution assisting the Vanua to Me tabana uasivi ni veiqaravi me torocake kina na bula uplift the wellbeing of the iTaukei and Rotumans.

raraba ni itaukei e Viti kei Rotuma.
Mission Statement Na lalawa • To promote initiatives that will improve the quality • Me tutaka na sasaga ena vinaka kina na ivakarau ni of life and enhance appropriate cultural traditions bula ka vakavinakataka na itovo kei na idusidusi ni and values of iTaukei and Rotumans bula ni itaukei e veiganiti e Viti kei Rotuma • To prudently invest the TTFB Funds to earn superior • Me vakatubutaka vakayalomatua na ilavo ni MLMT returns while complying with the iTaukei Trust Fund Act and to enhance the long term value of the Trust.
me rawata na tubu vinaka taudua ia me davo donu ena lawa e vauca na MLMT ka me tudei tiko kina na Mandated Objectives The objectives of the iTaukei Trust Fund Board are: yaga ni Matabose.
Na yavu ni veiqaravi Na yavu ni veiqaravi ni MLMT: (a) To provide funding for the undertaking, promotion a) Me vakailavotaka na sasagataki, tutaki kei na tokoni ni and sponsoring programmes on iTaukei language, culture and the study of ethno-history and ethno- geography ituvatuva eso e baleta na vosa, itovo kei na vulici ni itukutuku makawa ni kawa tamata kei na kena vanua.
b) Me vakailavotaka na sasaga me toroicake na veiqaravi, (b) To provide funding to help develop the management, veiliutaki kei na cakacakataki ni ilavo vei ira na itaukei e leadership and entrepreneurial skills of the Viti kei Rotumna.

indigenous iTaukei and Rotumans (c) To sponsor research into languages, art and c) Me tokona na vakadidiketaki ni vosa, itovo kei na vakavovotu e baleta na itaukei e Viti kei Rotuma kei na culture of the iTaukei and Rotumans and the better kena kilai deivaki na delaniyavu.
understanding and preservation of their heritage (d) To undertake any other purpose approved by the Board to be beneficial to the iTaukei and Rotumans d) Me qarava na gagadre tale eso e vakadonuya na Matabose ni yaga vei ira na itaukei e Viti kei Rotuma.
T A B L E O F C O N T E N T S COMPANY OVERVIEW 04 THE BOARD 05 CHAIRMAN’S LETTER 07 OPERATIONAL REPORT 15 FINANCIAL STATEMENTS 16 MEMBERS’ REPORT 18 STATEMENT BY MEMBERS 20 INDEPENDENT AUDIT REPORT 22 STATEMENT OF COMPREHENSIVE INCOME 23 STATEMENT OF CHANGES IN EQUITY 24 STATEMENT OF FINANCIAL POSITION 25 STATEMENT OF CASH FLOWS 26 NOTES TO THE FINANCIAL STATEMENTS 45 DISCLAIMER ON ADDITIONAL FINANCIAL INFORMATION 46 DETAILED INCOME STATEMENT 4 T HE BOAR D Standing L-R SITTING L-R Naipote Katonitabua Member Emi Rabukawaqa Member Dr. Joseph Veramu Member Fatiaki Misau Member Isoa Kaloumaira Secretary to the Board Preetika Prasad Member Peni Cavuilagi Member Aisake Taito Member 2017 Annual Report 5 CHA IR MA N’ S LE T TER Na ivola mai vua na iLiuliu ni Matabose The Prime Minister of Fiji and Minister for iTaukei Affairs & Sugar Industry Na Turaga na Paraiminista kei Viti, Minista ni Veika Vakaitaukei kei na Suka We present herewith the 16th annual report for the iTaukei Trust Fund Board for the financial year that ended on 31st December 2017.
Sa koya saka oqo na ika16 ni ivolatukutuku vakayabaki ni Matabose ni iLavo Maroroi ni iTaukei ni yabaki vakailavo a mai cava ena ika31 ni Tiseba, 2017.

The Fund’s investment portfolio remains shares, fixed income and properties.

Overseas investment remains the listed securities in the Australian Stock Exchange.

Investments in Fiji are in a number of stocks listed in the South Pacific Stock Exchange and in properties.
On the Fund’s investment in properties, the development of phase II of the complex at Draiba is working on increasing equity to reduce the debt burden.

The Arbitration’s Independent Expert called by the Raghwan Neo Joint Venture found that Raghwan Neo did contribute to the delay in construction and that the Fund’s Project Manager failed to issue the required notification of delays.

The Fund also waits on Government on the outstanding lease rental review and for an amicable conclusion.
For the Hotel Project, the Methodist Church Holding Trust has opted out of the Joint Venture and the Fund has acquired the MCHT’s property contribution to the Joint Venture for $2.1 million VIP.

An uplift in revenue generated from room upgrades at the Radisson Blu Resort at Denarau is expected In Australia, the tepid economic growth has subdued wage growth and there is a continuing low inflation.

The Board now has the full complement of eight Members.
This has enabled the formation of three sub-committees to scrutinize papers before final consideration by the Board.

The Fund thanks former Chairman Mr. Apakuki Kurusiga and welcomes new Board Member Mr. Naipote Katonitabua.

The curriculum on traditional leadership titled ‘Sauvaki ni Vanua’ was offered for the first time at Nadave.

The two cohorts of school teachers and Ministry of iTaukei Affairs staff continue to undertake the Diploma in Vernacular Studies, Fijian at USP.
Publication works have delved into writing folk tales as comic strips and bilingual books for children.

A new Project Officer was recruited to work on the Fijian Dictionary Projects including the iVolavosa App.

The App was completed and the android version was launched on December 19th.

The Apple version will be available 2018.

Projects in partnership with NZ and Australian literacy associations continue.
Cartons of reading books were received from Scholastic NZ for schools affected by cyclone and flooding.

A three-day workshop on literacy teaching skills was also delivered for primary school teachers in the Suva area.

Na tobu ni vakatubuilavo ni Matabose se dei tiko ga ena sea, umailavo vakatubutaki, kei na taukenivale.

Na vakatubuilavo mai valagi era tabaki ena Australian Stock Exchange.

Na vakatubuilavo e Viti e tiko ena taukenivale kei koya era tabaki ena South Pacific Stock Exchange.
E raica tiko na Matabose me tosoya cake na cau vakailavo ki na ikarua ni tabavale me tara ena itikotiko e Draiba.

Qo me lailai kina na dinau.

Sa vaqaqa rawa na Matalewai a kaciva na Raghwan Neo Joint Venture ni cala tale ga na Raghwan Neo ka lai bera kina na taravale.

A sega tale ga ni qarava na nona itavi na Project Manager ni Matabose me dau vola na ivola ni sa bera tiko na cakacaka.

Se waraki tiko na Matanitu me dua na macala ni kena raici lesu na lisi ni valenivolavola e Draiba.
E sa vakasuka mai na Joint Venture na Methodist Church Holding Trust (MCHT) ka sa volia na Matabose ena $2.1 na milioni na qele a nona cau na MCHT.

Namaki me na toso cake na ilavo e rawa mai na Radisson Blu resort e Denarau ena gauna e sa na vakacavari kina na vakatoroicaketaki ni rumu.

Ni malumu tiko na bula raraba vakailavo mai Ositerelia e lai sega tale ga ni tubu na isau ni tamata cakacaka ka tiko ga e ra na isau ni iyaya.

E sa tawani kece na idabedabe e walu ni leweni Matabose.
E sa rawa ni dabe na komiti lalai me dau raica rawa na pepa ni bera ni biu cake ki na Matabose.

E sa vakavinavinakataki na nona veiqaravi na iLiuliu ni Bose vakacegu Apakuki Kurusiga ka kidavaki na leweni Matabose vou, Naipote Katonitabua.

Na isevu ni vuli ni veiliutaki ena vanua ka vakatokai na ‘Sauvaki ni Vanua’ e sa qai vakayacori e Nadave.

Tomana tiko na vuli ni Vakadidike Vosavakaviti ena Univesiti ni Ceva na ilawalawa e rua ni qasenivulu kei na vakailesilesi ni Tabacakacaka iTaukei.
Ena tabaivola, e sa golevi tiko na sala vovou.

E sa volai vakakomiki na itukuni, volai tale ga na nodra ivola na gone ena Vosavakaviti kei na Vosavakavalagi, Vosavakarotuma kei na Vosavakavalagi.

E sa dua na vakailesilesi vou me mai qarava na cakacaka ni iVolavosa Vakaviti me sa biu ena talevoni veikauyaki.

Sa tavoci na iVolavosa ena talevoni android, na kena ena apple ena qai rawa ena 2018.
2017 Annual Report 6 Partnerships with international institutions and professional associations have been established.

Two staff members returned from a two-week study visit on ‘International Awareness on Museology Practices’ at the Sainsbury Research Unit (SRU).

On their return, the officers collaborated on curating the exhibition titled ‘Kamunaga.

A story of tabua’.

A second project is initiated is the ‘Fieldworkers’ Network’ to collect heritage information from the vanua.
From the same institution, Project Officer Mrs. Unaisi Manulevu has completed her Master of Arts in the Arts of Africa, Oceania and the Americas.

The Fund has become a financial member of the Commonwealth Association of Museums.

TTFB became the implementing partner in Fiji for the British Council Active Citizens (AC) programme.

AC is the British Council’s global social leadership training programme.

It has been another good year for the Fund in terms of the fulfilment of its legislated objectives.
The Investment portfolio remains healthy and generating the needed revenue to support the Fund’s operations.

The Fund is therefore pleased to report the achievement of a gross revenue of $7, 812,130 and a net profit from operations of $3,356,370 for the year.

The Net Asset grew to $107,030,997 with total asset of $116,646,175.

____________________ David Kolitagane Chairman Tomani tiko na cakacakavata kei na isoqosoqo ni vulici ni vosa e Niusiladi kei Ositerelia.
Yaco mai na kateni ivola ni wilivola ena veivuke ni soqosoqo mai Niusiladi me baleti ira na koronivuli vakacacani ena cagilaba kei na ualuvu.

Vakayacori tale ga na vuli siga tolu me baleti ira na qasenivuli ni paraimari e Suva.

Tauyavutaki na cakacakavata kei na vica na kena itini mai valagi.

Gole kina ina Sainsbury Research Unit e rua na vakailesilesi ena vuli e baleta na qaravi ni iyaya maroroi makawa.

Rau mai vakaitavi sara ena kena vakatikori ena Fiji Museum na ‘Kamunaga.
Na italanoa ni tabua.’ Tauyavu tale ga na ilawalawa ni vakasokumuni itukutuku ena vanua.

Ena koronivuli vata oya, e sa lai rawata mai na koroi ni Master of Arts in the Arts of Africa, Oceania and the Americas o Unaisi Manulevu.

E sa lewena tale ga na Commonwealth Association of Museums na Matabose.

Ena veidinadinati kei na British Council, e sa liutaka na Matabose ka cicivaki e Viti na Active Citizens (AC) programme.

Qo na vuli e baleta na veiliutaki ni qaravi na sasaga yaga ena itikotiko.
E mai dua tale yani na yabaki vinaka ni veiqaravi vua na Matabose me vakavotui tiko kina na usutu ni nona tauyavu.

E qarauni tiko vakavinaka na tobu ni vakatubuilavo ka sa rawata tiko mai na ilavo me sotava na tabana ni veiqaravi.

E marau kina na Matabose me vakaraitaka na ilavo kece e rawa ena loma ni yabaki e $7,812,130, na ilavo bula e $3,356,370.

E tubu na iyau ni Matabose ki na $107,030,997 kauta cake na levu taucoko ni yau ki na $116,646,175.
____________________ David Kolitagane iLiuliu ni Matabose 2017 Annual Report 7 OPERATIONAL REPORT Na iTukutuku Vakacakacaka 2017 Annual Report 8 Investments Na Vakatubuilavo The portfolio remains shares, fixed income and properties.

Na tobu ni vakatubuilavo e se tiko ga ena sea, vakatubuilavo Sectoral diversification is exercised within the shares and fixed vakadipositi kei na taukenivale.

E dau veisau ga na iwalewale income portfolios.


The overseas investment remains the listed ni vakatubuilavo ena sea kei na vakatubuilavo vakadipositi.

Na securities in the Australian Stock Exchange.

In Fiji, investments vakatubuilavo mai valagi era kaburaki tiko ena Australian Stock are in a number of stocks listed the South Pacific Stock Exchange Exchange.

E Viti, e tiko ena taukenivale kei koya e kaburaki ena and in properties.

South Pacific Stock Exchange.


All the term deposits were rolled over for periods ranging from Era vakavoui kece me yaciwa ki na tinikarua na vula na nine to twelve months as the Fund continues to manage its vakatubuilavo vakadipositi.

E lewamatautaka toka na Matabose cash built up to meet its equity contribution for the major capital na ilavo qaqa me vakarautaka me sotava kina na nona cau ki na developments.

sasaga lelevu e sa navuci tiko.


The Board continues to deliberate on the development of phase II Se wanonova tiko na Matabose na inakinaki e baleta na phase of the complex here at Draiba with the focus on increasing equity II e Draiba.

E gadreva tiko me tosoi cake na nona cau me to reduce the debt burden.

vakamamadataka na icolacola ni saumi dinau.


For the Hotel Project, the Methodist Church Holding Trust (MCHT) Ena vuku ni sasaga me tara na otela, e sa lewa na Methodist decided to opt out of the Joint Venture.

The Carlson Group of Church Holding Trust (MCHT) me sa vakasuka mai na Joint Hotels agreed to hold matters in abeyance for 18 months as the Venture.

E sa vakadonuya na Carlson Group of Hotels me se cegu Fund sorts out matters with the MCHT.
toka mada na sasaga qo me 18 na vula, me na rawa vua na The Fund exercised its Rights of first refusal under the Joint Venture Agreement bought the MCHT’s property contribution to Ena veidinadinati kei na MCHT, e na soli taumada ki na Matabose the Joint Venture for $2.1 million VIP.

Settlement took place in me lewa kevaka e via volia na tikiniqele nona na MCHT ka a nona Matabose me vagalalataka na veidinadinati a sa mai davo koto.

February 2018. cau ki na veidinadinati ni Joint Venture.
Volia kina na Matabose na tikiniqele ena Fepurueri 2018 ka kena isau e $2.1 na milioni.

The major refurbishment at the Radisson Blu Resort Denarau in the prior years has generated the needed uplift in revenue from E vakilai ena tubu e rawa tiko ena vica na yabaki sa sivi na the Investments.

Room upgrades now in progress may impact veisau levu a vakayacori ena Radisson Blu Resort e Denarau.

on the Fund’s revenue.


However, once completed the Radisson Na vakavinakataki ni rumu e vakayacori tiko ena gauna qo ena should be able to maintain its top ranking amongst the resorts rawa ni vakilai tale ga ena tubu e na qai rawa mai kina.

Ni sa na in Denarau and Fiji.

vakacavari na veiveisau oqo, e sa na rawa vua na Radisson me vakadeitaka ni otela uasivi taudua tiko e Denarau vaka kina e Viti.
YIELD COMPARISON FUNDS UTILIZATION 10 8 6 e g a t n e c r e 4P 2 0 120,000,000 100,000,000 e u a V l r a l l o D 80,000,000 60,000,000 40,000,000 20,000,000 0 p a C b a L i e v r e s e R n r E / t e R t s A C / t s e v n I t s A / F Sources and application of funds 2013 2014 2015 Year 2016 2017 Growth Asset Defensive Assest Total Yield 2013 2014 Years 2015 2016 2017 2017 Annual Report 9 The only outstanding matter in terms of the property portfolio is Ena vuku ni taukenivale, se raici lesu tiko kei na Matanitu na lisi the ongoing Government lease rental review for the offices at the ni itikotiko e Draiba.
E waraka tiko na Matabose me dua macala complex here at Draiba.

The Fund waits on Government for an vinaka me vakacavari kina na veivosaki ni lisi.

amicable conclusion to the review.

E sa biuta mai na nona vakatutu na kenadau tuvakataki koya, Mr.

The Independent Expert, Mr. Richard Maiden, hired to assess Richard Maiden, na turaga me mai dikeva na veika e sa tuvana the claims and counter claims in the Arbitration called by the mai na Raghwan Neo Joint Venture me saumi yani.
E laurai kina Raghwan Neo Joint Venture concluded his assessment.

He found ni a vakavuna tale ga na bera ni taravale o Raghwan Neo ia Raghwan Neo did contribute to the delay in construction but the na Project Manager ni Matabose a sega ni vakamuria na tikini Fund was led down by its Project Manager who failed to issue konitaraki oya me dau vola na ivola ni sa bera tiko na cakacaka.

the required notification of delays as stipulated in the contract.
E mani sega ni rawa kina vua na Matabose me vakaivotavota This negated the Fund’s ability to claim for liquidated damages.

ena ‘liquidated damages’.

Rau sa dikeva ruarua tiko na ito na Parties are reviewing the Independent Expert’s final draft report vakatutu me rau na qai sauma lesu vakaivola vua na kenadau.
for their respective final submissions to him On the Australian Investments our Investment Advisors from na daunivakasala ni vakatubuilavo mai na Morgans ka mai Morgans did a review of the Investment climate in Australia and vakamacalataka ki na Matabose na vakatubuilavo ni Matabose.

the portfolio at a Directors’ workshop here in Suva on 7th August.
E vukea tiko na tubu vakailavo ni sa toso cake tale na bula Pick up in the USA and the EU economies and steady controlled vakailavo e Merika kei na vanua vaka-EU vaka kina na nona growth in China helping propel global economic growth.

wanonova matua toka i Jaina na nona tubu vakailavo.
Ena vakatubuilavo e Ositerelia, a gole mai ena ika7 ni Okosita In Australia, tepid economic growth on the back of the slow Na gogo ni bula vakailavo e Ositerelia baleta ni se qai bula caka recovery in the resource sector, subdued wage growth and tiko mai na kena tabana ni yaubula e mai vakamaluataka na toso continuing low inflation still in play.

The strong regulatory cake ni isau ni tamata cakacaka kei na kena se lailai tiko na tubu environment is keeping in check the housing market from ni vakacavacava.
Ni qaqaco vinaka tiko na lawa e sega ni tubiu overheating.

sara vakasivia na isau ni vale ena kena makete.

The Fund continues to make investments based on the advice of E tomana tiko na vakatubuilavo na Matabose ka vakatau oqo ena the Advisors from Morgans.

vakasala mai vei iratou na daunivakasala vei Morgans.
On 28th February Australian Foundation Investment Company Ena ika 28 ni Fepurueri sa veisautaki me sea na noti ni Australian Limited converted its notes to shares at the discounted price of Foundation Investment Company ena isau e Aus$5.0864.

Na Aus$5.0864.

The Fund’s 1,000 Notes was converted to 19,660 1,000 na noti ni Matabose e sa veisau me 19,660 na sea.

shares.
10,000,000 e u a V l r a l l o D 7,500,000 5,000,000 2,500,000 INCOME STATEMENT COMPARISON 0 2013 2014 2015 Year 2016 2017 G Revenue Op Exp Man outlay Net Profit MANDATED OUTLAY e u a V l r a l l o D 400000 300000 200000 100000 0 2013 2014 2015 2016 2017 Year language & culture heritage & indigenous knowledge leadership entreprenuership 2017 Annual Report 10 The Fund had Aus$200,000 invested in Colonial Group’s five- E a vakatubutaka tu na Matabose e Aus$200,000 ena noti year subordinated Notes that matured on 31st March 2017. yabaki lima ni Colonial Group.
A sa matua ena ika31 ni Maji Colonial Group’s parent company, the Commonwealth Bank, 2017.

E a vakatara na Commonwealth Bank, na tina ni kabani offered Note holders the opportunity to reinvest into the Bank’s ni Colonial Group, vei ira na taukeninoti vua me ra vakatubuilavo new subordinated Notes (PERLS IX) that offered a floating rate ena kena PERLS IX.

A solia tiko e 3.9% na tubu kei na 90 na of 3.9% plus the 90 days BBSW with a term of five years.

Again siga ena BBSW me lima na yabaki.


E ciqoma na Matabose na based on the advice of our Investment advisor, the Fund took ivakasala ni daunivakasala mani vakatubutaka lesu ki na PERLS up the reinvestment offer and reinvested Aus$200,000 in the IX Notes na Aus$200,000.

PERLS IX Notes.

The National Australia Bank did a similar exercise offering vei ira na taukeninoti kina ka ra sa matua ena Jiune 2017 me ra holders of its subordinated Notes redeemed in June 2017 the vakatubutaka lesu.
Na noti vakatubutaki vou ena rawata e 2.20% opportunity to reinvest in its new Subordinated Notes 2.

The new na tubu kei na 90 na siga BBSW, era na qai matua ni oti e 6 Notes pay a floating rate of 2.20% plus the 90 days BBSW and na yabaki.

E ciqoma na Matabose na ivakasala ni daunivakasala redeemable in six years.

The Fund reinvested its Aus$100,000 mani vakatubutaka lesu me Noti 2 e Aus$100,000.
A vakayacora vaka kina na National Australian Bank ka vakatara into Notes 2 as advised by our Investment Advisor.

E ciqoma na Matabose na ivakasala ni daunivakasala ena Still on Debt Securities, based on the advice of the Investment vakatubuilavo ka mani vakatubutaka e Aus$200,000 ina Peet’s Advisors, the Fund invested Aus$200,000 in Peet Limited’s Bond Limited Bond, Aus$200,000 tale ga ina Villa World Limited’s and Aus$200,000 in Villa World Limited’s Bond.

The companies Bond.
The companies Bond.

Erau dau vakatorocaketaka na qele na kabani qo me are involved in land development for the growing housing markets sotava na makete ni taukenivale ena veivanua e gadrevi kina e in the major centers in Australia.

The Peet Bond has a fixed Ositerelia.

Na tubu ena Peet Bond e 7.5% matua ni oti e lima interest rate of 7.5% for the duration of the term of 5 years to 7th na yabaki ena ika7 ni Jiune 2022.

Tubu ena Villa World Bond e June 2022.


The Villa World Bond rate is 4.75% plus 90 BBSW 4.75% kei na 90 BBSW matua ni oti e lima na yabaki oya ena over the 5 years to 21st April 2022. ika 21 ni Epereli 2022.

New investments in equities were also made after a review of Ni mai raici lesu na tobu ni vakatubuilavo ni Matabose ena the portfolio following the workshop in August 2017.

Additional Okosota 2017, mai vica kina na sasaga ni vakatubuilavo vou.
Voli shares were purchased to increase holding in the following na sea me vakaikuri kina na vakatubuilavo vei iratou qo: securities: 2017 Annual Report 11 - Aus$67,741.65 for an additional 2641 BHP shares at the - Aus$67,741.65 me 2,641 tale na sea ena BHP, ya$26.41 price of $26.41 per share increasing holdings to 20,000 dua na sea, kauta cake me sa 20,000 taucoko na sea.
shares - Aus$46,226.25 for an additional 9195 Clyde Yorkshire Bank Bank shares (CYBG), ya$4.99 dua na sea, kauta cake me sa shares (CYBG) at the price of $4.99 per share to increase 30,000 taucoko na sea - Aus$46,226.25 me 9,195 tale na sea ena Clyde Yorkshire holdings to 30,000 shares - Aus$164,226.25 for an additional 1873 Macquarie Group Group, ya $87.99 dua na sea, kauta cake me 5,000 taucoko - Aus$164,226.25 me 1,873 tale na sea ena Macquarie shares at the price of around $87.99 per share to increase na sea holdings to 5,000 shares.
- Aus$116,745.16 for an additional 9713 Transurban shares ya$11.93 dua na sea, kauta cake me sa 35,000 taucoko na - Aus$116,745.16 me 9,713 tale na sea ena Transurban, at the price of around $11.93 per share to increase holdings sea to 35,000 shares.

- Aus$121,331.94 for an additional 3652 Westpac Bank ya$32.98 dua na sea, kauta cake me sa 12,000 taucoko na - Aus$121,331.94 me 3,652 tale na sea ena Westpac Bank, shares at the price of around $32.98 per share to increase sea holdings to 12,000 shares.
The portfolio was diversified to include new shares in the ena kabani oqo: following companies: - 107,500 Qube Shares at $2.58 per share for an outlay of taucoko e Aus$276,900.

Na Qube e dua na kabani ni usa Aus$276,900.

Qube is a major logistic company involved in iyaya ena wavu lelevu e Ositerelia kei Niusiladi.
- 107,500 na sea ena Qube, ya$2.58 dua na sea, kena isau E vakarabailevutaki na tobu ni vakatubuilavo ka voli na sea stevedoring and movement of goods into and out of major ports in Australia and New Zealand.

- 2,000 na sea ena CSL, ya$134.72 dua na sea, kena isau taucoko e Aus$269,437.69.

Na CSL e dua na kabani liu - 2,000 CSL shares at $134.72 per share of an outlay of ni veiqaravi ena tabana ni bula vakabibi ena dra kei na Aus$269,437.69.
CSL is a leading health company in the vakadidiketaki ni vaccine.

field of blood plasma and vaccine development.

- 4,550 Ramsay healthcare shares at $63.72 for an outlay of sea, kena isau taucoko e Aus$289,941.62.

E taukena Aus$289,941.62 Ramsay owns and runs private hospitals in ka cicivaka na Ramsay na valenibula cici vakatakikoya e Australia and in France.

Ositerelia kei Varanise.
- 4,550 na sea ena Ramsay healthcare, ya$63.72 dua na Culture and Heritage Na itovo kei na yaunivanua The research on somate or traditional funeral practices focusing Na vakadidike me baleta na somate a vakayacori me laurai se on the impact of these practices on the cultural, economic, and e tara vakacava na bula vakavanua, bula vakailavo kei na bula religious wellbeing of indigenous Fijians and other practitioners vakalotu ni lewenivanua na ivakarau se itovo eso e dau vakayacori has been translated into Vosavakaviti and submitted to the ena gauna ni somate.
E sa vakadewataki ena Vosavakaviti ka sa iTaukei Affairs Board for dissemination and awareness.

na rawa vua na Matabose ni Veika Vakaitaukei me wasea na itukutuku vei ira na lewenivanua.

The curriculum on traditional leadership and governance titled Sauvaki ni Vanua has been approved and registered by the Fiji A sa qai vakadonui na vuli ni ‘Sauvaki ni vanua’ ka sa Higher Education Commission as a Certificate 3 level course.

The vakatavulici e Nadave.


E sa koto ena itagede ni Sitivikiti 3 14-week course is written and taught in the Fijian language.

The ena Fiji Higher Education Commission.

E volai na vuli ena offering of the course at the Centre for Appropriate Technology Vosavakaviti, vakatavulici tale ga kina.

E 14 taucoko na macawa & Development in Nadave started in November and will be me vakatavulici kina ka sa tekivutaki e Nadave ena Noveba me ra completed in April 2018.
As the course targets the successors of qai taurivola na kena gonevuli ena Epereli, 2018.

Me vaka ni ra traditional leaders, the first class of 23 consisted of successors na lewenivuli ga kina o ira na sausauvou ni itutu ni veiliiutaki ena from the Tailevu and Rewa provinces.

vanua, na imatai ni matavuli e 23 na sasauvou mai na yasana o Tailevu kei Rewa.
2017 Annual Report 12 Cohorts of students made up of school teachers and another of Era a tomana tale na nodra vuli ena Univesiti ni Ceva na ilawalawa the Ministry of iTaukei Affairs staff undertaking the Diploma in qasenivuli kei na ilawalawa vakailesilesi ena Tabacakacaka Vernacular Studies, Fijian continued with a total of 6 courses.

iTaukei.

E 6 na lesoni a sa qaravi rawa ena 2017.


In collaboration with the iTaukei Institute of Language and Tekivutaki na kena volai ka matanataki vakakomiki e rua na Culture, two new comics of Fijian folk tales, Drevulakata and itukuni, Drevulakata kei O Dimailagi.

Mai qarava tale na kena O Dimailagi, are being illustrated as comic print productions.

matanataki na kenadau ena droini, Tuilevuka Ledua.

A qaravi Illustrator Tuilevuka Ledua was retained for the work.
vata kei na Tabana ni Vosa kei na iTovo vakaViti na sasaga qo.

Three new short bilingual books for children have been published.

E sa tabaki e tolu na ivola vovou e ganiti ira na gone lalai.

‘Le Sagsaga’ is written in Rotuman and English while ‘Kusima!

Rau tabaki ena Vosavakaviti kei na Vosavakavalagi na Kusima!

Enjoying fish!’ and ‘Kakana dina ena makete Root crops at Enjoying fish!

kei na Kakana dina ena makete Root crops at the the market’ are written in Fijian and English.

The books will market.


E tabaki ena vosavakaRotuma kei na Vosavakavalagi na be launched and sold from 2018.

They are a result of the Le Sagsaga.

Eratou na qai tavoci ka volitaki ena 2018.

E rawa ‘Information Text Awareness Project’ run in collaboration with ni volai na ivola va qo ena vuli ni ‘Information Text Awareness the ‘International Development in Oceania Committee’ of the Project’ kei na veitokoni ni ‘International Development in Oceania International Literacy Association.
Committee’ ni ‘International Literacy Association’.

Consultant Mr. Fergus Clunie continues the researching of Se tomana tiko na vakadidike me baleta na korowaiwai e the ring-ditch fortification at the Waidamudamu heritage site Waidamudamu, tiko ena Laucala beach Estate na kenadau ena located in Laucala Beach Estate.

The final report is expected vakadidike o Fergus Clunie.
E namaki me na vakacavari ena to be available in 2018 and will include guidelines and 2018 ka sa na yavutaki kina na vanua ni sarasara me baleta na recommendations for the formation of a heritage exhibition site.

korowaiwai.
korowaiwai.

In a partnership with the Sainsbury Research Unit (SRU) at the Ena sema kei na Sainsbury Research Unit (SRU) mai na University University of East Anglia in the UK, two members of staff were of East Anglia mai Igiladi, gole kina e rua na vakailesilesi me rau part the ‘Fiji Art & Heritage Team’ invited by the SRU to the lewe ni ilawalawa eratou lai vulica na ‘International Awareness on UK for a two-week study visit on ‘International Awareness on Museology Practices’.
Ni rautou lesu mai, eratou mai qarava na Museology Practices’.

On their return, the staff collaborated with ilawalawa wili kina e tolu mai na Vale ni Maroroi Yaya Makawa the other Fiji Museum team members to curate an exhibition e dua na ivakaraitaki ka vakatokai ‘Kamunaga.

Na italanoa ni titled ‘Kamunaga.

A story of tabua’.

The exhibition was launched tabua’.

Era a tavoca na ivakaraitaki oqo na turaga Peresitedi by his Excellency the President of Fiji on 15th June.

Due to its ena ika15 ni Jiune.


Se sega ni luva na ivakaraitaki oya baleta ni relevance to the Fijian people and culture, it has since been open tukuna tiko e dua na itukutuku bibi vei keda na itaukei.

to the public.

Also in partnership with SRU, a ‘Fieldworkers’ Network’ was tuberi na ‘dauvakekeli’ itukutuku ena vanua.

Ena tokona sara na established.


The network would be an important part of the vakadidiketaki ni veika e baleta na itovo kei na kena vakaraitaki research that will inform exhibitions at the planned cultural ena kena vale vou.

Na itukutuku e baleta na vanua era na center on the intangible cultural heritage of the uniqueness of vakasokumuna mai o ira na dauvakekeli.

Tokona tale ga na SRU na sasaga vou me tauyavu ka me ra each vanua in Fiji.
An Active Citizens approach to the training of fieldworkers ‘Lewenivanua yaga’ se ‘Active Citizens’.

A voli vaka kina e dua na representing the 9 tikina was conducted for the first group of misini ni veitaba, na canon DSLR kei na vica na kena gacagaca fieldworkers who represented the 9 districts of the vanua o Rewa.

me vukea na maroroi ni itukutuku.


Veivuke ena sasaga qo na A canon DSLR camera with accessories was bought to assist SRU kei na UK Art and Humanities Research Council ena ilavo in the documentation of field data.

Funding for projects held in e FJ$20,521.72.

Era tuberi na mata mai na veitikina e 9 ena vanua o Rewa me ra partnership with the SRU received a grant of FJ$20,521.72 from the UK Art and Humanities Research Council through the SRU.
Vakadonui na vakatutu ni British Council me mai cicivaka e Viti na Matabose na vuli e vakatokai raraba me ‘Active Citizens’.

Na vuli TTFB became the implementing partner in Fiji for the British qo e cicivaki ena vica na matanitu e vuravura.

E vuli ni veiliutaki Council Active Citizens (AC) programme.

AC is the British ka vakabibitaki kina na iwalewale ni veiwekani vakawatamata, Council’s global social leadership training programme that builds sotavi ni leqa, kei na sasaga eso vakaitikotiko.
E dua na skills in intercultural awareness, problem-solving and mentored tikinivuli ka usutu ni Active Citizens oya na kena semati vata na community engagement.

At the core of Active Citizens is a veivakayaloqaqataki, na veivakararamataki vakawatamata ka methodology that combines empowerment, interconnectivity and sema kei na sasaga ena dui vanua.

global awareness with community development through social action projects.
2017 Annual Report 13 A team of Master Facilitators from the British Council, including Tuberi e 18 me ratou dauniveituberi ni Active Citizens e Viti kei the Senior Specialist who has also been trained as a master na 6 mai valagi.

Rau gole mai e rua na kena qasenivuli mai na facilitator, trained 18 local and 6 overseas based AC Facilitators British Council ka rua yani e Viti.

E vakayacori sara e tolu na vuli, as part of the Pilot Project.

Three AC cascading in communities dua e nakoro ka rua e Suva.
E rua na vuli e raica na sasaga ni transpired during October and November, two workshops focused qarailavo, dua na vuli era tuberi kina na dauvakekeli itukutuku on social enterprise and one on social action.

It is envisaged that ena vanua.

E namaki me na tomani tiko na Active Citizens me the AC project will continue for the next two years.

rua tale na yabaki.
rua tale na yabaki.

In collaboration with the International Development in Oceania Ena veitokoni kei na International Development in Oceania Committee of the International Literacy Association, literacy Committee ni International Literacy Association, a qaravi e vica projects were undertaken with school teachers during the year.

na sasaga me tokona na vulici kei na wiliki ni vosa.
A tini vakacaca Cartons of reading books were received from Scholastic NZ as na kateni ivola ni wilivola mai Niusiladi rau a vakarautaka mai na an initiative with the NZ Literacy Association.

Fridge magnets with Scholastic Books kei na NZ Literacy Association.

A vakadewataki literacy messages written in English and in Fijian were published ki na Vosavakaviti na itukutuku e dau kabi ena makeneta.

A by the Australian Literacy Educators Association.
These were veisoliyaki vei ira na qasenivuli me soli vei ira na itubutubu.

Rawa given to teachers for distribution.

A three-day workshop in literacy oqo ena veitokoni ni Australian Literacy Association.

Vakayacori e teaching skills, titled the ‘Information Text Awareness Project’ Draiba na vuli vei ira na qasenivuli wasewase e loma me ra vulica was delivered for primary school teachers in the Suva area.

na iwalewale ni veituberi ena wilivola kei na saumi taro.
Work on making the iVolavosa App from the iVolavosa Vakaviti Tomani tiko na vakadewataki ni iVolavosa Vakaviti me sa biu ena continued in the first quarter.

In May a new Project Officer talevoni veikauyaki.

Laurai tale ga me dua na vakailesilesi vou me was recruited to handle the ongoing development of the Fijian qarava na veitavi ena vakayacori tiko ena vukuni iVolavosa.

Ena Dictionary Projects including the iVolavosa App.
The App was ika19 ni Tiseba sa vakacavari ka sa tavoci kina na iVolavosa App completed and the android version was launched on December ena talevoni android.

Veitokoni mai ena soqo ni kena marautaki 19th.

Sponsorships were received from Vodafone and TFL to na Vodafone kei na Telephone Fiji Limited.

Ena qai rawa ni celebrate the launch of the Fijian dictionary App.

The Apple vakayagataki na iVolavosa App ena talevoni Apple ena 2018. version of the App will be available once completed in 2018.
The formation of a group to work on the Rotuman language is vakatorocaketaki ni vosa vakaRotuma.

E sa na rawa tale ga vua in underway.

The group may also initiate the formation of an na komiti me tauyavutaka na isoqosoqo ni vakatulewa me baleta authority on the Rotuman language.

na vosa vakaRotuma.
na vosa vakaRotuma.

E sa duri tiko e dua na komiti me yadrava ka qarava na Project Officer Mrs. Unaisi Manulevu has successfully completed E sa vakacavara vakavinaka mai o Unaisi Manulevu na vuli ni her Master of Arts in the Arts of Africa, Oceania and the Americas Master of Arts in the Arts of Africa, Oceania and the Americas with the confirmation received from the University of East Anglia.

mai na University of New England.

A sa mai tekivu tale na The staff resumed duties in August.
veiqaravi e valenivolavola ena vula o Okosita.

The Fund has become a financial member of the Commonwealth E sa lewena tale ga na isoqosoqo ni Commonwealth Museums Association of Museums (CAM).

It can now participate in Association na Matabose.

E sa rawa kina ni vakaitavi ena vuli workshops, conferences, and other assistance in areas towards eso e dau qarava ka tokona na maroroi ni vosa, itovo kei na the management and operations of the cultural center.

iyaunivanua.
iyaunivanua.

Governance Na Veiqaravi Savasava There is a full complement of eight Members on the Board.

This has enabled the Board to form subcommittees to scrutinize papers before final consideration by the Board.

Three Board Subcommittees were formed as follows Eratou sa qai lewe walu na leweni Matabose ka sa tawani taucoko na idabedabe.

E sa qai rawa kina me lesi na komiti me dau raica rawa na pepa ni bera ni biu ki na Matabose me qai vakatulewa kina.

E sa tolu na komiti ni Matabose.
Governance and Human Resources Mr. Apakuki Kurusiga Chairman until 7/10/17 Dr. Joseph Veramu Chairman from 8/11/17 Mr. Misau Fatiaki Ms. Preetika Prasad Member Member Na Veiqaravi Savasava kei na Tabana ni Veiqaravi Apakuki Kurusiga Liuliu ni Komiti yacova na 7/10/17 Joseph Veramu Fatiaki Misau Preetika Prasad Liuliu ni Komiti mai na 8/11/17 Lewe ni Komiti Lewe ni Komiti 2017 Annual Report 14 Investment and Finance Vakatubuilavo kei na Veika Vakailavo Mr. Apakuki Kurusiga Chairman until 7/10/17 Mr. David Kolitagane Chairman from 8/11/17 Mr. Aisake Taito Member Apakuki Kurusiga David Kolitagane Aisake Taito Liuliu ni Komiti yacova na 7/10/17 Liuliu ni Komiti mai na 8/11/17 Lewe ni Komiti Mr. Naipote Katonitabua Member from 8/10/17 Naipote Katonitabua Lewe ni Komiti mai na 8/10/17 Culture and Heritage iTovo kei na iYaunivanua Mrs. Emi Rabukawaqa Chairperson Mr. Fatiaki Misau Mr. Peni Cavuilagi Member Member Emi Rabukawaqa Fatiaki Misau Peni Cavuilagi Liuliu ni Komiti Lewe ni Komiti Lewe ni Komiti During the year the Board met 7 times.
The Subcommittees E a dabe vakavitu na Matabose ena loma ni yabaki.

E a dabe tale also met in between the Board meetings.

The Governance and ga na Komiti ena maliwa ni veibose ni Matabose.

A bose vakatolu Human Resources met 3 times, Investment and Finance 6 times na Komiti ni Veiliutaki Savasava kei na Tabana ni Veiqaravi, and the Culture and Heritage 6 times.

vakaono na Komiti ni Vakatubuilavo kei na Veika Vakailavo, Chairman Mr. Apakuki Kurusiga completed his three year term on 7th October 2017.
The Fund is thankful for his contributions Ena ika7 ni Okotova 2017, sa mai vakacavari kina na yabaki tolu vakaono na Komiti ni iTovo kei na iYaunivanua.

throughout his tenure on the Board.

Closing comments ni nona veiqaravi na iLiuliu ni Matabose, Apakuki Kurusiga.

E sa vakavinavinaka na Matabose ena itavi kece sara sa mai qarava ena nona gauna ni veiqaravi.

It has been another good year for the Fund in terms of the fulfilment of its legislated objectives.
Impact of projects on Kena itinitini language, culture and heritage is getting good traction and is being E vakila na Matabose ni mai dua tale na yabaki vinaka ni acknowledged and appreciated by the indigenous communities veiqaravi ena itavi vakamatanitutaki.

Tekivu me sa vakilai tiko mai and their major institutions.
Professional relationships with na yaga ni sasaga me baleta na vosa, itovo kei na yaunivanua local and international organisations is raising awareness of the ka sa ciqomi tiko ena vanua vaka kina ena veitabana e qarava services by the Fund and garnered direct assistance in the form na vanua.

Na sema vakacakacaka kei na na veitabana ena noda of professional inputs and/or monetary grants into some of the vanua vaka kina i valagi e sa laveti cake tiko kina na tabana ni projects.

veiqaravi ni Matabose.


Era sa lomasoli kina e vica me ra veitokoni mai vakaivakasala kei na ilavo ena vica na sasaga ni Matabose.

The Investment portfolio remains healthy and generating the needed revenue to support the Fund’s operations.

Risk E sa vuavuaivinaka tiko na tobu ni vakatubuilavo ka sa rawata management is always to the fore in the reviews of the portfolio, tiko mai na ilavo e gadrevi me sotava na tabana ni veiqaravi ni the Fund is comfortable with the diversification spread and the Matabose.
E tovolea me levea na leqa e dau yaco ni dau railesuvi overall returns.

na tobu.

E tiko vakacegu na Matabose ena nona veibiuyaka tiko na umailavo ka marautaka tiko na tubu e rawa tiko mai kina.

The Fund is therefore pleased to report the achievement of a gross revenue of $7,812,130 and a net profit from operations of E marau kina na Matabose me vakaraitaka na ilavo taucoko e $3,356,370 for the year.

The Net Asset grew to $107,030,997.

rawa e $7,812,130.
rawa e $7,812,130.

Na tubu ni sa musu na ilavo e vakayagataki with total asset of $116,646,175.

vakacakacaka e $3,356,370.

E tubu na yau ni Matabose ki na $107,030,997 ena loma ni yabaki, kauta cake ki na $116,646,175 na yau taucoko ni Matabose.
2017 Annual Report 15 iTaukei Trust Fund Board FINANCIAL STATEMENTS CONTENT 16 MEMBERS’ REPORT 18 STATEMENT BY MEMBERS 19 AUDITORS’ INDEPENDENCE DELARATION 22 STATEMENT OF COMPREHENSIVE INCOME 23 STATEMENT OF CHANGES IN EQUITY 24 STATEMENT OF FINANCIAL POSITION 25 STATEMENT OF CASH FLOWS 26 NOTES TO THE FINANCIAL STATEMENTS 45 DISCLAIMER ON ADDITIONAL FINANCIAL INFORMATION 46 DETAILED INCOME STATEMENT 2017 Annual Report 16 iTAUKEI TRUST FUND BOARD MEMBERS’ REPORT For the year ended 31 December 2017 In accordance with a resolution of the members of iTaukei Trust Fund Board (“the Fund”), the members herewith submit the statement of financial position of Fund as at 31 December 2017, the related statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date and report as follows: Members The members of the Fund at any time during the financial year are as follows: Apakuki Kurusiga (retired on 6th October 2017) Aisake Taito David Kolitagane Emi Rabukawaqa Fatiaki Misau Dr Joseph Veramu Peni Cavuilagi Preetika Prasad Naipote Katonitabua (appointed on 30th October 2017) Principal activity The principal activity of the Fund during the financial year was the managing of the Fund by creating and maintaining a diversified portfolio comprising asset classes that will provide optimum returns to the Fund for the beneficiaries of the Fund.
The objects and purposes of the Fund are set out in Act No.

15 of 2004 and are to fund the promotion and sponsoring of programmes on iTaukei and Rotuman languages and culture; fund to help develop the management, leadership and entrepreneurial skills of iTaukei and Rotumans; sponsor research into languages, art and culture of iTaukei and Rotumans; and any other purposes approved by the Board as advantageous to the beneficiaries.

Results The Fund recorded a net profit of $3,356,370 (2016: $4,577,171).
Reserves There were no transfers to or from reserves during the year except for those required by the International Financial Reporting Standards.

Non-current assets Prior to the completion of the financial statements of the Fund, the members took reasonable steps to ascertain whether any non-current assets are unlikely to be realised in the ordinary course of business as compared to their values as shown in the accounting records of the Fund.
Where necessary these assets have been written down or adequate provision has been made to bring the values of such assets to an amount that they might be expected to realise.

As at the date of this report, the members are not aware of any circumstances which would render the values attributed to non-current assets in the Fund’s financial statements misleading.
Basis of accounting The members believe the basis of the preparation of the financial statements is appropriate and the Fund will be able to continue in operation for at least twelve months from the date of this report.

Accordingly the members believe the classification and carrying amounts of assets and liabilities as stated in these financial statements to be appropriate.
2017 Annual Report 17 iTAUKEI TRUST FUND BOARD MEMBERS’ REPORT For the year ended 31 December 2017 Unusual transactions In the opinion of the members, the results of the operations of the Fund during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature likely to affect substantially the results of the operations of the Fund in the current financial year, other than those reflected in the financial statements.
Events subsequent to balance date There has not arisen in the interval between the end of the financial year and the date of this report, any item, transaction or event of a material and unusual nature likely, in the opinion of the members of the Fund, to affect significantly the operations of the Fund, the results of those operations, or the state of affairs of the Fund in the subsequent financial year.
Other circumstances As at the date of this report: (i) no charge on the assets of the Fund has been given since the end of the financial year to secure the liabilities of any other person; (ii) no contingent liabilities have arisen since the end of the financial year for which the Fund could become liable; and (iii) no contingent liabilities or other liabilities of the Fund has become or is likely to become enforceable within the year after the end of the financial year which, in the opinion of the members, will or may substantially affect the ability of the Fund to meet its obligations as and when they fall due.
As at the date of this report, the members are not aware of any circumstances that have arisen, not otherwise dealt with in this report or the Fund’s financial statements, which would make adherence to the existing method of valuation of assets or liabilities of the Fund misleading or inappropriate.

Auditor Independence The directors have obtained an independence declaration from the Fund’s auditor, Ernst & Young.
A copy of the auditor’s independence declaration is set out in the Auditor’s Independence Declaration to the members of the iTaukei Trust Fund Board on page 19 For and on behalf of the Board and in accordance with a resolution of the members.

Dated this 14th day of May 2018.
Member.………………………………………….. Member.…………………………………….................…….. 2017 Annual Report 18 iTAUKEI TRUST FUND BOARD STATEMENT BY MEMBERS For the year ended 31 December 2017 The members of the Fund have made a resolution that declared: (a) in the members’ opinion, the financial statements and notes of the Fund for the financial year ended 31 December 2017: (i) give a true and fair view of the financial position of the Fund as at 31 December 2017 and of the performance of the Fund for the year ended 31 December 2017; and (b) at the date of this declaration, in the Members’ opinion, there are reasonable grounds to believe that the Fund will be able to pay its debts as and when they become due and payable.
For and on behalf of the Board and in accordance with a resolution of the members.

.……………………………………....…….. .……………………………………....…….. David Kolitagane Member 14th May 2018 Suva, Fiji.
Emi Rabukawaqa Member 2017 Annual Report 19 Auditor’s Independence Declaration to the members of iTaukei Trust Fund Board As lead auditor for the audit of iTaukei Trust Fund Board for the financial year ended 31 December 2017, I declare to the best of my knowledge and belief, there have been: (a) no contraventions of the auditor independence requirements in relation to the audit; and (b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of iTaukei Trust Fund Board for the financial year.
Ernst & Young Chartered Accountants Sikeli Tuinamuana Audit Partner Suva, Fiji 14 May 2018 A member firm of Ernst & Young Global Limited 2017 Annual Report 20 INDEPENDENT AUDIT REPORT To the members of iTaukei Trust Fund Board Report on the Audit of the Financial Statements Opinion We have audited the financial statements of iTaukei Trust Fund Board (“the Fund”), which comprise the statement of financial position as at 31 December 2017, the statement of comprehensive income, the statement of changes in equity, statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and the Members’ declaration.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Fund as at 31 December 2017, and of its financial performance, changes in equity and its cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRS”).

Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (“ISA”).
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Fund 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 our audit of the financial statements in Fiji and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the members and management The members and management are responsible for the preparation and fair presentation of the financial statements in accordance with IFRS and the iTaukei Trust Fund Act, and for such internal control as the management and members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the members and management are responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management and members either intend to liquidate the Fund or to cease operations, or have no realistic alternative but to do so.

The members and management are responsible for overseeing the Funds’ financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists.
Misstatements can arise from fraud and 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, we exercise professional judgement and maintain professional skepticism throughout the audit.
We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
A member firm of Ernst & Young Global Limited 2017 Annual Report 21 Auditor’s Responsibilities for the Audit of the Financial Statements continued - 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 Fund’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

- Conclude on the appropriateness of management’s and members’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern.
If we conclude that material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures, are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the Fund to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with management and regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide management and members with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements In accordance with the requirements of the iTaukei Trust Fund Act, in our opinion: a) Proper books of account have been kept by the Fund, so far as it appears from our examination of those books; b) the accompanying financial statements: a. are in agreement with the books of account; and b. to the best of our information and according to the explanations given to us, give the information required by the iTaukei Trust Fund Act in the manner so required.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Ernst & Young Chartered Accountants Sikeli Tuinamuana Audit Partner Suva, Fiji 14 May 2018 A member firm of Ernst & Young Global Limited 2017 Annual Report 22 iTAUKEI TRUST FUND BOARD STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2017 Revenue from ordinary activities Dividends Rental income Interest - held-to-maturity financial assets Unrealised exchange gain Interest - bank Publication sales Interest - Radisson fund Management fee Other income Total revenue from ordinary activities Expenses from ordinary activities Administration expenses Depreciation and amortisation Loss on disposal of available-for-sale investments Mandated outlays Publication costs Unrealised exchange loss Impairment loss on available-for-sale investments Other operating expenses Notes 8 (i) 8 (ii) 2 (i) 2 (ii) 2017 $ 2016 $ 4,242,761 2,985,694 345,311 171,623 25,536 25,090 - - 16,115 4,234,453 2,875,120 334,051 - 11,084 35,012 2,890 18,000 2,737 7,812,130 7,513,347 401,226 496,753 - 432,161 20,633 - 1,278,090 1,421,789 377,703 505,469 413 294,286 18,063 33,867 196,000 1,066,122 4,050,652 2,491,923 Net profit from ordinary activities 3,761,478 5,021,424 Finance costs Interest on loan Net profit from operations 405,108 444,253 3,356,370 4,577,171 Income tax expense 1.3 (i) - - Net profit after income tax 3,356,370 4,577,171 Other comprehensive income Net gain on remeasuring available-for-sale financial assets 6 (e) 10,033,406 1,064,464 Total comprehensive income 13,389,776 5,641,635 The accompanying notes form an integral part of this Statement of Comprehensive Income.
2017 Annual Report iTAUKEI TRUST FUND BOARD STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2017 Capital endowment fund Balance at 1 January Movement during the year Balance at 31 December Available-for-sale reserve Balance at 1 January Net movement during the year Balance at 31 December Retained earnings Balance at 1 January Net profit for the year Balance at 31 December Notes 16 6 (e) 17 23 2017 $ 2016 $ 40,000,000 - 40,000,000 40,000,000 - 40,000,000 12,735,931 10,033,406 11,671,467 1,064,464 22,769,337 12,735,931 40,905,290 3,356,370 36,328,119 4,577,171 44,261,660 40,905,290 Total equity 107,030,997 93,641,221 The accompanying notes form an integral part of this Statement of Changes in Equity.
2017 Annual Report 24 iTAUKEI TRUST FUND BOARD STATEMENT OF FINANCIAL POSITION As At 31 December 2017 Non-current assets Receivables and other prepayments Financial assets - available-for-sale Financial assets - held-to-maturity investments Plant and equipment Investment properties Investment in joint venture Intangible assets Total non-current assets Current assets Cash and cash equivalents Receivables and other prepayments Inventories Financial assets - held-to-maturity investments Total current assets Total assets Equity Capital endowment fund Available-for-sale reserve Retained earnings Total equity Current liabilities Interest bearing borrowings Trade creditors and accruals Employment benefit liability Total current liabilities Non-current liabilities Interest bearing borrowings Total non-current liabilities Total liabilities Notes 2017 $ 2016 $ Total equity and liabilities 116,646,175 104,076,250 The accompanying notes form an integral part of this Statement of Financial Position.
For and on behalf of the Board and in accordance with a resolution of the members.
Member.………………………………………….. Member.…………………………………….............…….. 2017 Annual Report iTAUKEI TRUST FUND BOARD STATEMENT OF CASH FLOWS For the year ended 31 December 2017 Operating activities Net profit after income tax Adjustment to reconcile profit before tax to net cash flows Non-cash: Depreciation and amortisation Unrealised exchange (gain)/loss Doubtful debts Impairment loss Dividend reinvested Interest added to principal Working capital adjustments: (Increase)/decrease in receivables and other prepayments Decrease/(increase) in inventory Increase in trade creditors and accruals (Decrease)/Increase in employee benefit liability 25 Note 2017 Inflows/ (Outflows) 2016 Inflows/ (Outflows) 3,356,370 4,577,171 496,753 (266,411) - 1,278,090 (40,857) (216,924) (472,700) 9,698 128,815 (4,906) 505,469 1,438 31,291 196,000 - (254,737) 1,673,650 (16,061) 178,309 3,911 Net cash flows provided by operating activities 4,267,928 6,896,441 Investing activities Acquisition of plant and equipment Acquisition of intangible assets Payments for investment property Net payments for investment in joint venture Net payments for investments in financial assets (24,284) (7,840) (6,407) - (3,341,327) (10,223) (28,699) (1,222,729) (146,660) 898,703 Net cash flows used in investing activities (3,379,858) (509,608) Financing activities Net repayments of interest bearing borrowings Net cash flows used in financing activities (943,760) (902,250) (943,760) (902,250) Net increase in cash and cash equivalents (55,690) 5,484,583 Cash and cash equivalents at 1 January 7,965,620 2,513,879 Unrealised exchange gain/(loss) Cash and cash equivalents at the end of the year 3 94,788 (32,842) 8,004,718 7,965,620 The accompanying notes form an integral part of this Statement of Cash Flows.
2017 Annual Report 26 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 1.

Corporate Information The financial statements of iTaukei Trust Fund Board (“the Fund”) for the year ended 31 December 2017 were authorised for issue in accordance with a resolution of the members on 25 April, 2018. iTaukei Trust Fund Board was established and domiciled in the Republic of Fiji in accordance with the iTaukei Trust Fund Act.
The principal activity of the Fund is described in Note 25.

1.1 Basis of preparation of the Financial Statements The financial statements have been prepared on a historical cost basis except for some assets which are measured at fair value.

The financial statements are presented in Fiji dollars and all values are rounded to the nearest dollar except when otherwise indicated.
Statement of compliance The financial statements of iTaukei Trust Fund Board have been prepared in accordance with International Financial Reporting Standards (IFRS).

Changes in accounting policies and disclosures There are a number of new standards and amendments which are effective from annual periods beginning on or after 1 January 2018.

The Fund will adopt the standards when they become mandatory.
New and amended standards and interpretations Reference Summary Application date of standard Application date for the Fund IFRS 15 Revenue from Contracts with Customers Requires revenue to be recognized on satisfaction of the performance obligations specified under contracts.

1 January 2018 1 January 2018 IFRS 9 Financial Instruments – New requirements on recognition of expected credit losses.
Changes in categories of financial instruments 1 January 2018 1 January 2018 IFRS 16 Leases IFRS 17 Insurance Contracts Requires operating leases to be recognized on balance sheet.

A comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure.
1 January 2019 1 January 2019 1 January 2021 1 January 2021 1.2 Significant accounting estimates and assumptions The preparation of the Fund’s financial statements requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date.
However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future.
Estimations and assumptions The key assumptions concerning the future and other key sources of estimation and uncertainty at the balance date, that have a significant risk of causing material adjustments to the carrying amount of assets and liabilities within the next financial year is discussed below: Impairment of non-financial assets The Fund assesses whether there are any indicators of impairment for all non-financial assets at each reporting date.
Non-financial assets are tested for impairment when there are indicators that the carrying amounts may not be recoverable.

2017 Annual Report 27 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 1.3 Summary of significant accounting policies a) Foreign currencies The financial statements are presented in Fiji dollars, which is the Fund’s functional and presentation currency.
Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance date.

All differences are taken to the statement of comprehensive income.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.

b) Investment properties Investment properties are measured initially at cost, including transaction costs.
The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria is met; and excludes the cost of day to day servicing of an investment property.

Subsequent to initial measurement, investment property is stated at cost less accumulated depreciation.

The investment properties are depreciated at 1.25% while leasehold land is amortised over the lease period.
Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal.

Any gains or losses on the retirement or disposal of an investment property is recognised in the statement of comprehensive income in the year of retirement or disposal.

c) Plant and equipment Plant and equipment is stated at cost less accumulated depreciation.
Such cost includes the cost of replacing part of the plant and equipment when that cost is incurred, if the recognition criteria is met.

Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria is satisfied.

All other repair and maintenance costs are recognised in the statement of comprehensive income as incurred.
Depreciation is calculated on a straight line basis over the useful life of the asset as follows: Office equipment Furniture and fittings Motor vehicles Generator 12% to 40% 12% to 15% 20% 12% An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of comprehensive income in the year the asset is derecognised.

The asset’s residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate, at each financial year end.

d) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in the statement of comprehensive income in the year in which the expenditure is incurred.
2017 Annual Report 28 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 1.3 Summary of significant accounting policies continued d) Intangible assets continued The useful lives of intangible assets for the Fund are assessed to be finite.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.
The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at each financial year end.

Changes in the expected useful life or expected pattern of consumption in future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
The amortisation expense on intangible assets with finite lives is recognised in the statement of comprehensive income in the expense category consistent with the function of the intangible assets.

Gain or losses arising from the derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of comprehensive income when the asset is derecognised.
Impairment of non-financial assets The Fund assesses at each reporting date whether there is an indication that an asset may be impaired.

If any such indication exists, or when annual impairment testing for an asset is required, the Fund estimates the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets.

When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

In determining fair value less costs to sell, an appropriate value model is used.

For assets, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased.
If such indication exists, the Fund makes an estimate of the recoverable amount.

A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised.

If that is the case the carrying amount of the asset is increased to its recoverable amount.
The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

Such reversal is recognised in the statement of comprehensive income.

f) Financial instruments - initial recognition and subsequent measurement A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
i) Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, AFS financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
2017 Annual Report iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 1.3 Summary of significant accounting policies continued 29 f) i) - - - - - Financial instruments - initial recognition and subsequent measurement continued Financial assets continued Initial recognition and measurement continued Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Fund commits to purchase or sell the asset.
Subsequent measurement For purposes of subsequent measurement financial assets are classified in four categories: Financial assets at value through profit and loss Loans and receivables Held-to-maturity investments AFS financial assets Financial assets at value through profit and loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss.
Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term.

Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments as defined by IAS 39.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value presented as finance costs (negative net changes in fair value) or finance income (positive net changes in fair value) in the statement of comprehensive income.

- Loans and Receivables This category is the most relevant to the Fund.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method, less impairment.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
The EIR amortisation is included in finance income in the statement of comprehensive income.

The losses arising from impairment are recognised in the statement of comprehensive income in finance costs for loans and in cost of sales or other operating expenses for receivables.

This category generally applies to trade and other receivables.

For more information on receivables, refer to Note 4.
- Held to maturity investments Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held to maturity when the Fund has the positive intention and ability to hold them to maturity.

After initial measurement, held to maturity investments are measured at amortised cost using the EIR, less impairment.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
The EIR amortisation is included as finance income in the statement of comprehensive income.

The losses arising from impairment are recognised in the statement of comprehensive income as finance costs.

- AFS financial assets AFS financial assets include equity investments and debt securities.

Equity investments classified as AFS are those that are neither classified as held for trading nor designated at fair value through profit or loss.
Debt securities in this category are those that are intended to be held for an indefinite period of time and that may be sold in response to needs for liquidity or in response to changes in the market conditions.
2017 Annual Report 30 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 1.3 Summary of significant accounting policies continued f) i) - Financial instruments - initial recognition and subsequent measurement continued Financial assets continued AFS financial assets continued After initial measurement, AFS financial assets are subsequently measured at fair value with unrealised gains or losses recognised in Other Comprehensive Income (OCI) and credited in the AFS reserve until the investment is derecognised, at which time the cumulative gain or loss is recognised in other operating income, or the investment is determined to be impaired, when the cumulative loss is reclassified from the AFS reserve to the statement of comprehensive income in finance costs.
Interest earned whilst holding AFS financial assets is reported as interest income using the EIR method.

The Fund evaluates whether the ability and intention to sell its AFS financial assets in the near term is still appropriate.

When, in rare circumstances, the Fund is unable to trade these financial assets due to inactive markets, the Fund may elect to reclassify these financial assets if the management has the ability and intention to hold the assets for foreseeable future or until maturity.
For a financial asset reclassified from the AFS category, the fair value carrying amount at the date of reclassification becomes its new amortised cost and any previous gain or loss on the asset that has been recognised in equity is amortised to profit or loss over the remaining life of the investment using the EIR.

Any difference between the new amortised cost and the maturity amount is also amortised over the remaining life of the asset using the EIR.
If the asset is subsequently determined to be impaired, then the amount recorded in equity is reclassified to the statement of comprehensive income.
- Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Fund’s statement of financial position) when: - - The rights to receive cash flows from assets have expired; and The Fund has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Fund has transferred substantially all the risks and rewards of the asset, or (b) the Fund has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
- Impairment of financial assets The Fund assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired.

An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’), has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated.
Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
- AFS financial assets For AFS financial assets, the Fund assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired.
2017 Annual Report iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 31 1.3 Summary of significant accounting policies continued f) i) Financial instruments - initial recognition and subsequent measurement continued Financial assets continued AFS financial assets continued In the case of equity investments classified as AFS, objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost.
‘Significant’ is evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair value has been below its original cost.

When there is evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognised in the statement of comprehensive income – is removed from OCI and recognised in the statement of comprehensive income.
Impairment losses on equity investments are not reversed through profit or loss; increases in their fair value after impairment are recognised in OCI.

The determination of what is ‘significant’ or ‘prolonged’ requires judgement.

In making this judgement, the Fund evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost.
In the case of debt instruments classified as AFS, the impairment is assessed based on the same criteria as financial assets carried at amortised cost.

However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in the statement of comprehensive income.
Future interest income continues to be accrued based on the reduced carrying amount of the asset, using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.

The interest income is recorded as part of finance income.
If, in a subsequent year, the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in the statement of comprehensive income, the impairment loss is reversed through the statement of comprehensive income.
ii) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Fund’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: - Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

This category also includes derivative financial instruments entered into by the Fund that are not designated as hedging instruments in hedge relationships as defined by IAS 39.

Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
2017 Annual Report 32 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 1.3 Summary of significant accounting policies continued f) ii) - Financial instruments - initial recognition and subsequent measurement continued Financial liabilities continued Financial liabilities at fair value through profit or loss continued Gains or losses on liabilities held for trading are recognised in the statement of comprehensive income.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IAS 39 are satisfied.

The Fund has not designated any financial liability as at fair value through comprehensive income.

- Loans and borrowings This is the category most relevant to the Fund.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.

The EIR amortisation is included as finance costs in the statement of comprehensive income.

This category generally applies to the interest-bearing loans and borrowings.
g) Cash and cash equivalents Cash and cash equivalents in the statement of financial position comprise cash at bank and on hand and short term deposits with an original maturity of three months or less.

h) Employment benefit liability Provisions are made for wages and salaries, incentive payments and annual leave estimated to be payable to employees at balance date on the basis of statutory and contractual requirements.
i) Taxes The income of iTaukei Trust Fund Board is exempt from income tax under the Income Tax Act.

j) Leased assets The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset.
Fund as a lessee Finance leases, which transfer to the Fund substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments.

Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are reflected in the statement of comprehensive income.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no reasonable certainty that the Fund will obtain ownership by the end of the lease term.

Operating lease payments are recognised as an expense in the statement of comprehensive income on a straight line basis over the lease term.
2017 Annual Report 33 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 1.3 Summary of significant accounting policies continued j) Leased assets continued Fund as a lessor Leases where the Fund does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases.
Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.

Contingent rents are recognised as revenue in the period in which they are earned.
k) Trade and other payables Liabilities for trade creditors and other amounts are carried at cost (inclusive of VAT where applicable) which is the fair value of the consideration to be paid in the future for goods and services received whether or not billed to the Fund.

Amounts payable that have been denominated in foreign currencies have been translated to local currency using the rates of exchange ruling at the end of the financial year.
l) Value Added Tax (VAT) Revenue, expenses and assets are recognised net of the amount of Value Added Tax except: - - where the VAT incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the VAT is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and receivables and payables that are stated with the amount of VAT included.
m) Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefit will flow to the entity and the revenue can be reliably measured.

The following specific recognition criteria must also be met before revenue is recognised: Interest Revenue is recognised as the interest accrues (taking into account the effective yield on the asset) unless collectability is in doubt.

Dividends Revenue is recognised when the Fund’s right to receive the payment is established.
Grants Revenue is recognised when there is reasonable assurance that the grants will be received and the Fund will comply with the conditions attached to them.

n) Comparative figures Comparative figures have been amended where necessary, for changes in presentation in the current year.

2.
2.

(i) Expenses Administration expenses Wages and salaries Superannuation Strategic plan FNU levy Other staff benefits Staff amenities 2017 $ 338,183 35,633 21,440 3,465 1,336 1,169 2016 $ 323,729 33,651 14,523 3,347 1,456 997 401,226 377,703 2017 Annual Report 34 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 2.
(ii) EXPENSES continued Other operating expenses Auditors’ remuneration Consultancy Insurance Legal fees Management fees - Fijian Property Trust Company Limited Repairs and maintenance Miscellaneous 3.
CASH AND CASH EQUIVALENTS Cash at bank Cash on hand 2017 $ 2016 $ 7,000 69,420 164,132 205,655 104,371 311,177 560,034 1,421,789 6,615 35,570 159,085 27,502 104,371 187,285 545,694 1,066,122 $ $ 8,004,518 200 8,004,718 7,965,420 200 7,965,620 Cash at bank earns interest at floating rates based on the daily bank deposit rates.

The fair value of cash on hand and at bank is $8,004,718 (2016: $7,965,620).

4.
4.

RECEIVABLES AND OTHER PREPAYMENTS Current Rental debtors Less: provision for doubtful debts Interest and dividend receivable Other debtors Prepayments Non-current Other deposits and prepayments Total receivables and other prepayments At 31 December, the ageing analysis of current receivables is as follows: Neither past due nor impaired < 30 days 30 - 90 days > 90 days Total 5.
INVENTORIES Publications $ $ 61,016 (28,007) 33,009 217,700 91 250,800 329,397 580,197 579,637 1,159,834 1,126,732 18,158 8,763 34,186 1,187,839 63,109 (29,200) 33,909 162,061 91 196,061 3,242 199,303 391,188 590,491 556,491 25,827 17,169 20,204 619,691 $ $ 91,919 91,919 101,617 101,617 During 12 months ended 31 December 2017, $6,131 was recognised as an expense for inventories carried at net realisable value (2016: $428).
2017 Annual Report iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 6.
FINANCIAL ASSETS - AVAILABLE-FOR-SALE 2017 2016 35 Holding (a) Shares listed on the South Pacific Stock Exchange 5,000,000 Amalgamated Telecom Holdings Limited 1,000,000 Pacific Green Industries (Fiji) Limited 4,000,000 R B Patel Company Limited 104,054 BSP Convertible Notes Limited (Fiji class shares) 200,000 Future Forests Fiji Limited (FFFL) Less: Provision for impairment - FFFL (b) Shares listed on the Australian Stock Exchange 37,143 ALSW Limited 30,000 Amcor Limited 30,567 ANZ Banking Group Limited 19,660 Australian Foundation Invest Company Limited 20,000 BHP Billiton Limited 12,000 BT Investment Management Limited 10,000 Caltex Australia Limited 12,522 Commonwealth Bank of Australia 2,000 CSL Limited 30,000 CYBG Group 5,000 Macquarie Group Limited 142,600 Medibank Private Limited 15,358 Monadelphous Group Limited 23,220 National Australia Bank Limited 100,000 Orora Limited 107,500 Qube Holdings Limited 4,550 Ramsey Health Care Limited 8,831 Rio Tinto Limited 100,000 Sydney Airports Stapled Securities 273,400 Telstra Corporation Limited 35,000 Transurban Group 11,300 Westfarmers Limited 12,000 Westpac Banking Corporation 5,570 Worley Parsons Limited 10,000 Woolworths Limited (c) Unlisted shares - local 10,000,000 Fijian Holdings Limited ‘B’ class shares at $1.00 (d) Unit Trust 863,900 Fijian Holdings Unit Trust 225,309 Unit Trust of Fiji - Income 165,170 Unit Trust of Fiji - Income & Growth Total available-for-sale financial assets $ 9,300,000 1,000,000 17,120,000 887,581 196,000 28,503,581 (196,000) $ 6,350,000 1,000,000 12,600,000 809,540 196,000 20,955,540 (196,000) 20,759,540 338,479 676,675 1,402,910 - 659,205 192,457 459,566 1,556,937 - 151,298 411,020 606,717 260,215 1,074,468 451,116 - - 798,095 903,742
 2,103,711 393,727 718,439 410,599 74,279 363,609 14,007,264 10,000,000 10,000,000 635,212 217,532 274,146 1,126,890 45,893,694 The Fund has investments in listed equity and debt securities.
The fair value of the quoted equity shares is determined by reference to published price quotations in an active market.

2017 Annual Report 36 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 6.

FINANCIAL ASSETS - AVAILABLE-FOR-SALE continued The Fund assesses at each reporting date whether there is objective evidence that an investment is impaired.
Objective evidence would include significant or prolonged decline in the fair value of the investment below its cost.

The determination of what is ‘significant’ or ‘prolonged’ requires judgement.

In making this judgement, the Fund evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost.
(e) Movement in available-for-sale financial assets Net market value adjustment Net exchange rate movement Gain on remeasuring available-for-sale financial assets 7.
FINANCIAL ASSETS - HELD-TO-MATURITY Holding (a) Term deposits Bank of South Pacific Limited Credit Corporation (Fiji) Limited Merchant Finance Limited Westpac Banking Corporation 2017 $ 9,790,805 242,601 10,033,406 $ 2016 $ 1,171,620 (107,156) 1,064,464 $ 3,197,820 685,781 1,630,280 6,794,401 2,123,429 672,309 1,601,628 6,693,991 12,308,282 11,091,357 Term deposit with Westpac Banking Corporation is held as security to secure the loan from Westpac Banking Corporation in Note 14.
(b) Australian listed interest securities 750 AGL Energy notes 1,000 Australian Foundation Investment Company notes 2,000 Colonial Holding Company notes 1,000 National Australia Bank subordinated notes 1,071 Peet Limited retail bonds 1,000 Qube Holdings notes 1,000 Suncorp Group Limited subordinated notes 1,950 Villa World Limited retail bonds 1,000 Westpac Banking Corporation subordinated notes 935 APT Pipelines Limited Subordinated Notes 965 Goodman PLUS Units Total held-to-maturity financial assets Current Non-current 117,740 - 313,972 156,985 178,815 156,985 156,987 318,991 - 156,957 - 1,557,432 13,865,714 12,308,282 1,557,432 13,865,714 113,156 150,875 301,750 150,875 - 150,875 150,875 - 150,875 150,847 150,581 1,470,709 12,562,066 11,845,732 716,334 12,562,066 2017 Annual Report iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 37 8.
INCOME GENERATED FROM INVESTMENTS Details of investments 2017 $ 2016 $ Name of company Location Income earned Shares listed on the South Pacific Stock Exchange Amalgamated Telecom Holdings Limited BSP Convertible Notes Limited (Fiji class shares) Pacific Green Industries (Fiji) Limited R B Patel Company Limited Fiji Fiji Fiji Fiji 300,000 73,899 20,000 640,000 400,000 76,521 40,000 600,000 1,033,899 1,116,521 (i) Dividends Name of company Location Income earned Details of investments Shares listed on the Australian Stock Exchange ALS Limited Amcor Limited ANZ Banking Group Limited Australian Foundation Invest Company Limited BHP Billiton Limited BT Investment Management Limited Caltex Australia Limited Commonwealth Bank of Australia Macquarie Group Limited Medibank Private Limited Monadelphous Group Ltd National Australia Bank Orora Limited Rio Tinto Limited Sydney Airports Stapled Securities Telstra Corporation Limited Transurban Group Westfarmers Limited Westpac Banking Corporation Woolworths Limited Unlisted shares - local Fijian Holdings Limited ‘B’ class shares Unit Trusts Fijian Holdings Unit Trust Unit Trust of Fiji - Income Unit Trust of Fiji Total dividends Aust.
Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.
Fiji Fiji Fiji 9,188 26,064 75,280 4,355 29,006 8,385 17,553 84,303 29,269 26,804 12,999 70,767 17,233 41,724 45,232 132,444 25,209 39,546 29,474 13,170 6,481 25,296 74,435 - Annual Report 38 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 8.
(ii) INCOME GENERATED FROM INVESTMENTS continued Interest - held-to-maturity financial assets 2017 $ 2016 $ Name of company Location Income earned Details of investments Securities listed on the South Pacific Stock Exchange Future Forests convertible notes Term deposits Bank of South Pacific Credit Corporation Merchant Finance Company Limited Westpac Banking Corporation Interest - held-to-maturity financial assets Fiji Fiji Fiji Fiji Fiji - 12,848 81,642 25,919 58,818 101,487 267,866 Name of company Location Income earned Details of investments Australian listed securities AGL Energy subordinated notes APT Pipelines Ltd Notes Australian Foundation Investment Company notes AXA Subordinated floating rate notes Colonial Holding Company Limited Goodman Plus Units National Australia Bank subordinated notes Origin Energy notes Peet Limited retail bonds Qube Holdings notes Suncorp Group Limited subordinated notes Villa World Limited retail bonds Westpac Banking Corporation subordinated notes Woolworths Limited notes Aust.
Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Aust.

Total interest 9.
PLANT AND EQUIPMENT Office equipment Cost At 1 January Additions At 31 December Depreciation At 1 January Depreciation charge for the year At 31 December Net book value 6,106 9,148 1,564 - 13,165 5,873 6,589 - 6,301 8,485 7,172 8,498 4,544 - 77,445 345,311 $ $ 597,503 21,284 618,787 571,882 14,262 586,144 32,643 54,825 19,331 52,905 76,316 203,377 7,095 9,583 9,585 22,555 16,368 8,233 7,166 13,598 - 2,171 7,386 7,242 6,844 117,826 334,051 594,108 3,395 597,503 548,787 23,095 571,882 25,621 2017 Annual Report iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 9.
PLANT AND EQUIPMENT continued Furniture and fittings Cost At 1 January Additions At 31 December Depreciation At 1 January Depreciation charge for the year At 31 December Net book value Motor vehicles Cost At 1 January At 31 December Depreciation At 1 January At 31 December Net book value Generator Cost At 1 January At 31 December Depreciation At 1 January Depreciation charge for the year At 31 December Net book value Total balance as at 31 December 39 2017 $ 2016 $ 138,645 3,000 141,645 97,794 9,729 107,523 34,122 90,100 90,100 90,100 90,100 - 131,817 6,828 138,645 88,069 9,725 97,794 40,851 90,100 90,100 90,100 90,100 - $ $ 122,641 122,641 114,711 7,930 122,641 - 66,765 122,641 122,641 99,994 14,717 114,711 7,930 74,402 As at 31 December 2017, the gross carrying amount of fully depreciated property, plant and equipment that are still in use is $828,035 (2016: $684,798).
10.

INVESTMENT PROPERTIES At 1 January Additions Transfer At 31 December Depreciation and amortisation At 1 January Depreciation and amortisation charge for the year At 31 December $ 39,692,836 92,397 (87,544) 39,697,689 $ 38,471,817 1,221,019 - 39,692,836 3,240,013 442,375 3,682,388 2,804,401 435,612 3,240,013 36,015,301 36,452,823 2017 Annual Report 40 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 10.
INVESTMENT PROPERTIES continued The property rental income earned by the Fund from its investment properties amounted to $2,985,694 (2016: $2,875,120).
Rental income derived from investment properties Direct operating expenses generating rental income Direct operating expenses that did not generate rental income Net profit arising from investment properties carried at cost 2017 $ 2,985,694 (1,377,942) (571,250) 1,036,502 2016 $ 2,875,120 (1,323,854) (383,016) 1,168,250 The Fund has elected to value investment properties at cost.

Investment properties are depreciated at 1.25% while leasehold land is amortised over the lease period.
The investment properties disclosed under Note 14 are mortgaged to Westpac Banking Corporation.

11.

INVESTMENT IN JOINT VENTURE Investment in Fund Trust Joint Venture $ $ 405,799 405,799 In 2014, the Fund had entered into a Joint Venture Agreement (“the Venture”) with the Methodist Church in Fiji Holding Trust (“the Trust”).

The Venture is for the development of adjoining commercial properties on Stewart Street, Suva which the venturers own.
During the year, Trust offered for sale its interest in the Venture, to which the Fund had the first right of refusal.

The Fund exercised this right and the acquisition of the Trust’s interest in the Venture was completed subsequent to year-end.

The Fund intends to continue with the proposed development and has assessed that the amount carried as its investment is not impaired.

12.
12.

INTANGIBLE ASSETS $ $ Cost At 1 January Additions At 31 December Amortisation At 1 January Amortisation At 31 December Net book value 13.

EMPLOYMENT BENEFIT LIABILITY At 1 January (Utilised)/credited during the year At 31 December 14.
INTEREST BEARING BORROWINGS Current Secured loan - Westpac Banking Corporation Non-current 139,912 7,840 147,752 110,174 22,457 132,631 15,121 31,170 (4,906) 26,264 $ $ 111,213 28,699 139,912 89,561 20,613 110,174 29,738 27,259 3,911 31,170 $ $ 987,125 943,768 Secured loan - Westpac Banking Corporation 8,033,064 9,020,181 Terms and conditions of the secured loan are: The loan is repayable by monthly installments of $114,392 for 10 years at an interest rate of 4.25% per annum.
2017 Annual Report 41 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 14.
INTEREST BEARING BORROWINGS continued The loan is secured by the registered first mortgage number 757595 over BLV and offices, registered first mortgage number 757598 over Union Plaza building, registered first mortgage number 757596 over commercial property at 16 St Fort Street, share mortgage over share certificates number 27 (Amalgamated Telecom Holdings Limited), 176 and 168 (Pacific Green Industries (Fiji) Limited), and 323 (R B Patel Company Limited), and security over term deposit number 9803732321.
15.

TRADE CREDITORS AND ACCRUALS Trade creditors and accruals Rental deposits Rent received in advance Retention account VAT payable 2017 $ 2016 $ 250,577 187,703 51,850 68,002 10,593 568,725 128,587 43,292 164,375 68,002 35,654 439,910 Terms and conditions of the above financial liabilities: -Trade payables and accruals are non-interest bearing and are normally settled on 30-60 day terms.

-The retention account relates to amounts retained by the Fund for the construction of the BLV 16.
CAPITAL ENDOWMENT FUND Capital endowment fund 17.

RESERVES Available-for-sale reserve $ 40,000,000 $ 40,000,000 $ $ 22,769,337 12,735,931 This reserve comprises changes in fair value of available-for-sale financial assets.

18.
18.

CAPITAL COMMITMENTS Capital expenditure commitments $ $ 2,987,609 1,401,762 Capital expenditure commitment of $2,987,609 relates to the following: - Balance of payment for the acquisition of Stewart St property of $1.785 million; and - Consultancy fees for Phase 2 development at Draiba Complex $1.202 million.

19.

CONTINGENT LIABILITIES The Fund is in arbitration with Raghwan Neo Joint Venture (“RNJV”) in relation to the construction of the BLV Complex.
This involves an alleged claim against the Board of $6.81m.

The Board also has a counter claim for damages arising from lost rental as a result of construction delays and latent defects in the construction.

During the year, an independent expert was engaged to review the parties’ claims and counter claims before the arbitration proper may proceed.

20.

OPERATING LEASE INCOME The Fund has entered into commercial property leases on its investment property portfolio.
Operating lease relates to rental income from building space rented out to Government Ministries, Carlson Hotels (Fiji) Limited and Union Plaza.

These non- cancellable leases have remaining terms of between two to sixteen years.

2017 Annual Report 42 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 20.
OPERATING LEASE INCOME continued Non-cancellable operating lease receivables Within one year After one year but not more than five years More than five years 21.

FUTURE LEASE RENTAL EXPENSES 2017 $ 1,839,975 6,577,969 10,011,320 18,429,264 2016 $ 2,020,686 6,545,000 11,599,019 20,164,705 The future lease rentals payable for leasehold land, which have not been provided for in the accounts are as follows: Within one year After one year but not more than five years More than five years 22.
RELATED PARTY TRANSACTIONS (a) Members $ $ 18,194 72,776 1,082,811 1,173,781 18,194 72,776 1,101,005 1,191,975 The names of persons who were members of iTaukei Trust Fund Board any time during the financial year are as follows: Apakuki Kurusiga (retired on 6th October 2017) Aisake Taito David Kolitagane Emi Rabukawaqa Fatiaki Misau Dr Joseph Veramu Peni Cavuilagi Preetika Prasad Naipote Katonitabua (appointed on 30th October 2017) Compensation of key management personnel Short term employee benefits Transactions with other related entities Member fees $ $ 153,443 148,930 49,018 30,167 22.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Principal financial liabilities comprise interest bearing borrowings and trade payables.

The main purpose of these financial liabilities is to raise finance for the Fund’s operations.

The Fund has various financial assets such as trade receivables and cash which arise directly from its operations.

The main risk arising from the Fund’s financial statements are foreign currency risk, interest rate risk and liquidity risk.
The members review and agree on policies for managing each of these risks which are summarised below.

2017 Annual Report 43 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 23.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES continued Foreign currency risk The Fund has transactional currency exposures.

Such exposures arise from investments by the Fund in currency other than Fijian dollars.
The majority of investments are made in Australian dollars (AUD).

The following table demonstrates the sensitivity to a reasonably possible change in the AUD rate, with all other variables held constant, of the Fund’s profit before tax.
2017 2016 Interest rate risk Increase / (decrease) in AUD rate Effect on profit before tax $ +1% -1% +1% -1% 8,278 (8,445) 6,851 (8,941) The Fund’s exposure to the risk of changes in market interest rates relates primarily to the Fund’s interest bearing facility and investment in debt securities.
The following sensitivity analysis is based on the interest rate risk exposures in existence at the balance date: 2017 2016 Liquidity risk Increase / (decrease) in interest rate Effect on profit before tax $ +1% -1% +1% -1% (217) 217 (962) 962 The table below summarises the maturity profile of the Fund’s financial liabilities at 31 December 2017 and 31 December 2016 based on contractual undiscounted payments.
This includes the interest bearing borrowings, employment benefit liability and trade payables and accruals.

On demand Within one year After one year but not more than five years More than five years Total 24.

FINANCIAL INSTRUMENTS 2017 $ 568,725 987,125 5,527,674 2,505,390 9,588,914 2016 $ 232,243 1,151,435 4,228,108 4,792,073 10,403,859 Set out below is a comparison by category of carrying amounts and fair values of all of the Fund’s financial instruments that are carried on the financial statements.
Financial assets Cash and cash equivalents Financial assets - available-for-sale Financial assets - held-to-maturity Receivables and other prepayments Carrying value 2017 $ Fair value 2017 $ 8,004,718 57,021,004 13,865,714 1,159,834 8,004,718 57,021,004 13,865,714 1,159,834 2017 Annual Report 44 iTAUKEI TRUST FUND BOARD NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 December 2017 24.
FINANCIAL INSTRUMENTS continued Financial liabilities Trade creditors and accruals Employment benefit liability Interest bearing borrowings Financial assets Cash and cash equivalents Financial assets - available-for-sale Financial assets - held-to-maturity Receivables and other prepayments Financial liabilities Trade creditors and accruals Employment benefit liability Interest bearing borrowings Carrying value 2017 $ Fair value 2017 $ 568,725 26,264 9,020,189 Carrying value 2017 $ 7,965,620 45,893,694 12,562,066 590,491 Carrying value 2017 $ 439,910 31,170 9,963,949 568,725 26,264 9,020,189 Fair value 2016 $ 7,965,620 45,893,694 12,562,066 590,491 Fair value 2016 $ 439,910 31,170 9,963,949 The fair value of financial assets and borrowings has been calculated by discounting the expected future cash flows at prevailing interest rates.
The fair value of financial assets has been calculated using market interest rates.

25.

PRINCIPAL BUSINESS ACTIVITY The principal activity of the Fund Board during the financial year was the managing of the Fund by creating and maintaining a diversified portfolio comprising asset classes that will provide optimum return to the Fund for the beneficiaries of the Fund.

The objects and purposes of iTaukei Trust Fund Board are set out in Act No.
15 of 2004 and are to fund the promotion and sponsoring of programmes on iTaukei and Rotuman languages and culture; fund to help develop the management, leadership and entrepreneurial skills of iTaukei and Rotumans; sponsor research into languages, art and culture of iTaukei and Rotumans; and any other purposes approved by the Board as advantageous to the beneficiaries.

26.
26.

EVENTS SUBSEQUENT TO BALANCE DATE There has not arisen in the interval between the end of the financial year and the date of this report, any item, transaction or event of a material and unusual nature likely, in the opinion of the members of the Fund, to affect significantly the operations of the Fund, the results of those operations, or the state of affairs of the Fund in the subsequent financial year.

27.
27.

FUND DETAILS iTaukei Trust Fund Board was incorporated under the iTaukei Trust Fund Act 2004 which was enacted by the Parliament of Fiji on 4th November 2004.
Place of operation Veivueti House 87 Queen Elizabeth Drive PO Box 2327 Government Buildings Suva 2017 Annual Report 45 iTAUKEI TRUST FUND BOARD DISCLAIMER ON ADDITIONAL FINANCIAL STATEMENTS For the year ended 31 December 2017 Disclaimer on additional Financial Information The additional financial information, being the attached detailed income statement, is compiled by the Board of iTaukei Trust Fund Board.
To the extent permitted by law, Ernst & Young does not accept liability for any loss or damage which any person, other than iTaukei Trust Fund Board may suffer arising from any negligence on our part.

No person should rely on the additional financial information without having an audit or review conducted.
2017 Annual Report 46 iTAUKEI TRUST FUND BOARD DETAILED INCOME STATEMENT For the year ended 31 December 2017 Revenue from ordinary activities Dividends Gain on disposal of available-for-sale investments Interest - bank Interest - held-to-maturity investments Interest - Radisson fund Management fee Other income Publication sales Rental income Unrealised exchange gain Total revenue from ordinary activities Expenses from ordinary activities Administration expenses: FNU levy Other staff benefits Staff amenities Strategic plan Superannuation Wages and salaries Notes 8 (i) 8 (ii) 2017 $ 4,242,761 - 25,536 345,311 - - 16,115 25,090 2,985,694 171,623 7,812,130 3,465 1,336 1,169 21,440 35,633 338,183 2016 $ 4,234,453 - 11,084 334,051 2,890 18,000 2,737 35,012 2,875,120 - 7,513,347 3,347 1,456 997 14,523 33,651 323,729 Total administration expenses 401,226 377,703 Depreciation and amortisation Loss on disposal of available-for-sale investments Mandated outlays Publication costs Unrealised exchange loss Impairment loss on available-for-sale investments Other operating expenses: Auditors’ remuneration Consultancy Insurance Legal fees Management fees - Fijian Property Trust Company Limited Repairs and maintenance Miscellaneous expenses Annual report Bank and interest charges City rates Cleaning Computer expenses Doubtful debts Electricity FNU levy Fringe benefit tax Fuel General expense Hire expense 496,753 - 432,161 20,633 - 1,278,090 7,000 69,420 164,132 205,655 104,371 311,177 8,725 1,103 48,222 77,451 10,505 (1,193) 31,929 675 1,517 18,839 18,978 993 505,469 413 294,286 18,063 33,867 196,000 6,615 35,570 159,085 27,502 104,371 187,285 7,864 4,433 48,583 68,026 11,132 31,291 45,876 302 1,895 12,913 9,586 - The Detailed Income Statement is to be read in conjunction with the disclaimer set out on page 31.
2017 Annual Report iTAUKEI TRUST FUND BOARD DETAILED INCOME STATEMENT continued For the year ended 31 December 2017 Expenses from ordinary activities continued Other operating expenses continued : Miscellaneous expenses continued Land rent License fees Loan administration expense Member fees Secretariat and accounting fees Security Stationery, printing and office supplies Telephone and internet Travel, accommodation and entertainment Valuations Water Wealth and fees Website design Total Miscellaneous Expenses Total Other Operating Expenses Total expenses from ordinary activities 47 2017 $ 2016 $ 18,194 3,488 23,835 49,018 59,583 128,235 3,507 11,362 1,106 1,500 4,508 34,579 3,375 560,034 1,421,789 4,050,652 18,194 3,502 26,139 30,167 55,000 111,996 3,199 11,384 8,027 - 2,268 33,467 450 545,694 1,066,122 2,491,923 Net profit from ordinary activities 3,761,478 5,021,424 Finance costs Interest on loan Net profit from operations 405,108 444,253 3,356,370 4,577,171 Income tax expense 1.3 (i) - - Net profit after income tax Other comprehensive income 3,356,370 4,577,171 Gain on remeasuring available for sale financial assets 10,033,406 1,064,464 Total comprehensive income 13,389,776 5,641,635 The Detailed Income Statement is to be read in conjunction with the disclaimer set out on page 31.
2017 Annual Report 48 2017 Annual Report 49 CORPORATE GOVERNANCE STATEMENT YAVU NI VEIQARAVI Board members Responsibilities .

protect and enhance the Fund’s value .

set and review Trust strategies and strategic direction .

monitor operating and financial performance .

risk management .

achieve objectives and purpose of the iTaukei Trust Fund Board (TTFB) .

report to stakeholders Board Structure Comprising eight Members appointed by the Minister for iTaukei Affairs: .
one member who is a Legal Practitioner registered under the Legal Practioners Act 1997 .

one member who must be a Chartered Accountant in public practice registered under the Fiji Institute of iTavi ni lewe ni Matabose .

maroroya ka vakaikuritaka na iLavo Maroroi .

tuvana ka vakadiloya na tuvatuvaka ni Matabose kei na vanua e sa mua kina .

yadrava na qaravi itavi kei na rawaka vakailavo .

vakatulewa matau ena bolebole eso ni veiqaravi .


rawata na lalawa kei na inaki ni Matabose ni iLavo Maroroi ni iTaukei (MLMT .

vakasavui itukutuku vei ira era sema vakacakacaka ki na MLMT Lewe ni Matabose Na Minista ni Veika Vakaitaukei me vakatikora e walu na lewe ni Matabose: .

dua me daunilawa volayaca ena Legal Practitioners Act 1997. .

dua me daunifika veiqaravi raraba volayaca ena Fiji Institute of Accountants Act (Cap 259) Accountants Act (Cap 259) .
dua me vakaivola ka kila vinaka na bula vakailavo se me .

one member with suitable qualification and experience as an vakaivola ena tabana yaga tale eso economist or other relevant qualifications Board Meeting .

target of eleven meetings a year .

additional meeting held as required Committees .

Board Members do not delegate major decisions to committees .

committees are responsible for considering detailed issues and making recommendations to the Board Investment Sub-Committee .
eleven meetings a year .

establishing of investment strategies .

assist the Board in identifying and assessing investment opportunities .

monitor risks and investment performances .

Review the investment manual on policy and procedures as and when required Language and culture sub-committee .

minimum of four meetings a year .

to assist in developing means of preserving and promoting Fijian language, culture and heritage .

establishing framework, strategies and plan .


assist in developing a partnership approach with various local, regional and international organization Scholarship Committee .

minimum of two meetings a year .

to conduct interviews and make recommendations to the Board .

to review the Manual as and when required Standards .

formal review of Board performance .

active participation by all Members at all meetings .

open access to information .

independent professional advice is available to all Members .
formal code of conduct adopted Bose ni Matabose .

namaki me tinikadua na bose ena dua na yabaki .

kacivi tale na bose kevaka e gadrevi Komiti .

na leweni Matabose e sega ni dau vakacolata na komiti na vakatulewa lelevu eso .

na itavi ni komiti me dikeva na veika matailalai qai biuta na nona vakatutu ki na Matabose.

Komiti Lailai ni Vakatubuilavo .

bose vakatinikadua ena dua na yabaki .

navuca na sala eso ni vakatubuilavo .


vukea na Matabose ena kena vakasaqarai ka dikevi na vanua eso ni vakatubuilavo .

yadrava na bolebole eso kei na ituvaki ni vakatubuilavo .

railesuva ena gauna e gadrevi kina na ivakarau kei na iwalewale ni vakatubuilavo ena kena ivola dusidusi Komiti ni Vosa kei na iTovo Vakaviti .

rauta ni va na bose ena dua na yabaki .

vukea na kena tarai cake na sala eso me maroroi ka tutaki kina na vosa vakaviti, itovo kei na iyaunivanua .
navuca na ituvatuva, ivakarau kei na inakinaki .

vukea na kena taraicake na cakacaka vata kei ira na isoqosoqo e Viti, Pasifika kei na veiyasai vuravura Komiti ni Sikolasivi .

rauta ni rua na bose ena dua na yabaki .

me qarava na nodra vakatarogi na kere sikolasivi ka solia na nona vakatutu ki na Matabose .

me railesuva na ivola dusidusi ni soli sikolasivi ena gauna e sa gadrevi kina Na iVakatagedegede ni Cakacaka .

dikevi vakamatau ni veiqaravi ni Matabose .


vakaitavi ni lewe ni Matabose yadua ena bose taucoko .

vakarawarawataki na itukutuku .

vakarautaki na nodra ivakasala na kenadau vei ira na lewe ni Matabose .

vakabau na idusidusi ni veiqaravi matau 2017 Annual Report iTaukei Trust Fund Board REGISTERED OFFICE: Veivueti House, 87 Queen Elizabeth Drive, Suva PO Box 2327, Government Buildings, Suva T: (679) 331 9637 E: taro@itaukeitrustfund.com.fj