Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697791277759.pdf (Fiji)
PARLIAMENT PAPER NO.

01 OF 2021 AUGUST JULY 2017 - 2018 ANNUAL REPORT To be the best We will create an environment of excellence Service Excellence Passion Ownership Respect Teamwork Safety and Security COVER The transformed headquarters for the Fiji Sports Council enhances service delivery to our customers and provides improved working conditions for staff.
CONTENTS Letter to the Minister Events Highlights Chairman’s Report Board Members Senior Management CEO’s Report Financial Performance Financial Statements Directory Our Strategic Partners 1 2 5 6 7 8 11 13 13 41 VisionMissionValues Letter to the Minister Hon.

Laisenia Tuitubou Minister for Youth and Sports Nasoqo House 3 Gordon Street Suva Dear Minister, It is with great pleasure that I present the Fiji Sports Council (FSC) Annual Report for the August 2017 –July 2018 financial year.
The Report presents the audited financial statements and a summary of the Council’s performance for the financial year, and highlights the main projects and events for the same period.

I would like to take this opportunity to thank the Government of Fiji for its continued support, and look forward to maintaining this successful collaboration in the coming year.
Yours sincerely, Peter Mazey Chairman 1 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 August 2017 - July 2018 Event Highlights 2017 AUGUST 2018 JANUARY - Deans Rugby Semi-Finals & Finals (ANZ Stadium) - Hibiscus Festival (Vodafone Arena, Multi-purpose Courts) - Special Olympics (ANZ Stadium) - New Methodist Conference (ANZ Stadium) - Revival Conference (Lawaqa Park) SEPTEMBER - Re-opening of the FMF Gymnasium & Opening of the Fiji Sports Council Head Office - Athletics Fiji Pre-Season Competition (ANZ Stadium) - Mind Pearl Awards (Vodafone Arena) FEBRUARY - Secondary Schools Inter-house Season (ANZ - Netball International Series - Fiji vs South Africa – 2 Stadium) Tests (Vodafone Arena) - National Rugby Championship – Fiji Drua vs NSW Country Eagles (Lawaqa Park) - National Rugby Championship – Fiji Drua vs Perth Spirit - Fiji Sports Awards (Vodafone Arena) - Ship For Leaders Cultural Night (Vodafone Arena) - SPBD Awards Night (Vodafone Arena) (ANZ Stadium) MARCH - University of the South Pacific Graduation (Vodafone Arena) - Fijian Holdings Limited Awards (Vodafone Arena) - Primary School Inter-houses - Short Course Swimming Competition (Damodar City - Pacific Rugby Championship (ANZ Stadium) - Fiji Bitter Marist 7s tournament (ANZ Stadium) - Suva Zone I Athletics Meet (ANZ Stadium) - USP Graduation (Vodafone Arena) Aquatic Centre) - JW Assembly (Lawaqa Park) OCTOBER - Battle of the Bati (ANZ Stadium) - ANZ Diwali Celebrations (ANZ Stadium) - Westpac Diwali Celebrations (Vodafone Arena) - RLWC Prelude - Pacific Tri-Nations - Fiji, PNG Kumuls and Kangaroos (ANZ Stadium) - Kangaroos Fans Clinic (National Hockey Centre) - ITTF World Cadet Challenge (Vodafone Arena) - National Rugby Championship – Fiji Drua vs Sydney Rays (ANZ Stadium) - Lady Fatima Centennial Celebration (Vodafone Arena) NOVEMBER - Oceania 7s (ANZ Stadium) - Commonwealth Games Queens Relay Baton (DCAC, NNC, ANZ Stadium) - Irene Van Dyk runs Netball Clinics (National Netball Centre, Vodafone Arena) - Huawei Raka 7s (ANZ Stadium) -
 University of the South Pacific Exams (Vodafone Arena) - CMF Dinner (Vodafone Arena) DECEMBER - RFMF Centennial Military Tattoo (ANZ Stadium) - UPC General Conference (Vodafone Arena) - Fiji Hockey Invitational – Fiji, Australia Country, Japan APRIL - Athletics Fiji Easter Championship (ANZ Stadium) - Coca-Cola Games (ANZ Stadium) - USPSA Social (Vodafone Arena) - ITTF Oceania Paralympic Table-Tennis Championship (Vodafone Arena) MAY - ANZ Stadium - Special Olympics - FMF Gymnasium – Fiji National University Graduation - FMF Gymnasium - Wedding Reception - FMF Gymnasium – ANCF Church - DCAC – Long Course Swimming Nationals (6 overseas teams participating too) - FMF Gymnasium – Pacific Tech Graduation - FMF Gymnasium – Wedding Reception - FMF Gymnasium – ANCF Church Reception Mothers Sunday - Lawaqa Park – Skipper Cup – Nadroga vs Suva - Lawaqa Park – Skipper Cup – Nadroga vs Navosa - DCAC – Fijian Holdings Limited Sports Day - National Netball Centre – Fijian Holdings Limited Sports Day - ANZ Stadium – Skipper Cup – Naitasiri vs Namosi - ANZ Stadium – Stella Maris Interhouse - FMF Gymnasium – Rotuma Day - ANZ Stadium – Skipper Cup Round 5 - Lawaqa Park – Fiji National Rugby League – Vodafone U18s (National Hockey Centre) Cup Eliminations Rounds 2 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 - ANZ Stadium – Roman Catholic Archdiocese of Suva - FMF Gymnasium – Fiji Fashion Week (Event is held on 26th) - ANZ Stadium – Skipper Cup Round 6 - Lawaqa Park – Skipper Cup Nadroga vs Namosi - FMF Gymnasium – University of the South Pacific Exams - ANZ Stadium Concourse – Naitasiri Baptist - DCAC – National Swimming Championship JUNE - DCAC – National Swimming Championship - FMF Gymnasium – USP Exams - Lawaqa Park – FNRL Vodafone Cup Semi-finals - Lawaqa Park – FNRL Vodafone Cup Finals - ANZ Stadium - Fiji Rugby Test Matches – Fiji vs Georgia, Fiji vs Tonga - UPC Church Conference - ANZ Stadium - Fiji Rugby Test Match - Lawaqa Park – FNRL Club Games - ANZ Stadium
 Closure for Super Rugby Preparations - FMF Gymnasium – Island Fiva Concert - FMF Gymnasium - Women’s Expo (Set up from 18th) - Lawaqa Park – FNRL Primary Schools Competition - FMF Gymnasium – Suva Grammar School Concert - FMF Gymnasium – Suva Grammar School Concert - 30th – FMF Gymnasium – Super Rugby After-Function - ANZ Stadium – Super Rugby Pulse Energy Highlanders vs Gallagher Chiefs JULY - Fijian Elections Mock Training - NHC – Business House Hockey - FMF Gymnasium – Suva Grammar Concert - Lawaqa Park – Skipper Cup – Nadroga Semi-final potential - VTC – Tennis Tournament - FMF Gymnasium – Wedding - Lawaqa Park – Skipper Cup Reserve - NHC – Club Hockey Competition - FMF Gymnasium – Wedding Reception - ANZ Stadium – Ace Convention - FMF Gymnasium & ANZ Stadium – ACE Convention - FMF Gymnasium – Ace Converntion - ANZ Stadium - Deans Rugby Quarter-finals - FMF Gymnasium – Ambassadors Taekwando Cup - Lawaqa Park – Nadroga Rugby Skipper Cup Final potential - NHC – Futsal Tournament - FMF Gymnasium – Tentative Oceania Volleyball - FMF Gymnasium – Film Fiji - ANZ Stadium - Deans Rugby Semi-finals - NHC – Valerie Daveta Tournament 3 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 4 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 Chairman’s Report As the organization responsible for the planning, constructing, maintaining and delivery of high quality venues and facilities for sports at all levels, from high performance athletes to community recreational activities, the Fiji Sports Council has more than delivered on its promise, with the official opening of the FSC Head Office and FMF Gymnasium complex in January 2018.
From the outset, I wish to thank the Fijian Government for its vision in placing more emphasis on the social and economic importance of sport in Fiji, through modern sporting facilities such as this, and the many others we are beginning to see established around the country, particularly those in once overlooked rural areas.
Through key investments such as the one made in the new complex, and with ongoing Government support, more and more of our young people are beginning to see sports as a serious career path.

The new Head Office and FMF Gym has been a long time coming, for the Board, Management and staff of FSC.
The original structure was built a year after the FSC was first established in 1978, and now, after nearly four decades, it has finally undergone its biggest–ever refurbishment, effectively launching the Council into the 21st Century.

In recent years, some had described the FMF gym as the ‘grand old lady’ of all our combined 19 sports facilities around the country managed by FSC.
The ‘grand old lady’ has finally been given a new lease of life, and is a model of what professional sports facilities should look like.

This latest development is part of the Sports Council’s ongoing vision and long- term strategic plan for future development.

With Government support, in 2012 the FSC facilities have seen upgrades take place at the ANZ stadium, followed by Lawaqa Park in Sigatoka in 2014, the Suva Lawn Tennis Club and at the Victoria Tennis and Squash Courts in 2015.
All of these facilities have been brought up to top international standards and have enabled Fiji to host world events.

In June 2017, my Board received Government support for the redevelopment of the Vodafone Arena.

This is the next major project for the Sports Council, which began in March 2018.

We look forward to the planned completion and commissioning of this project in 2019.
As the time of presenting this report we are cognizant of the constraints we will face as we enter the new normal, post COVID-19, world.

But we can still dream big, and together, we can still achieve great things.

Peter Mazey Chairman 5 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 Members of the Board Mr Peter Mazey Chairman Lt.

Colonel Ifereimi Vasu Deputy Chairman Mr Joseva Sania Board Member Mr Daniel Lobendahn Board Member Mr Vijendra Sundar Board Member (R.I.P.)
Mr Colin Philp Board Member Ms Marigold Moody Board Member (Resigned 17.05.2018) Mrs Elesi Ketedromo Board Member (Resigned 16.04.2018) Mrs Losalini Waqausa Board Secretary Mr Parmesh Chand Board Member (Resigned 31.03.2018) Ms Sharon Smith Board Member (Appointed 17.04.2018) Mr Joel Abraham Board Member (Appointed 17.04.2018) Mr Sakeasi Seru Board Member (Appointed 17.04.2018) 6 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 Senior Management Litiana Loabuka Chief Executive Officer John Pickering Chief Operations Officer Eleina McDonald Operations Manager Ashni Sharma Finance Manager Alvinesh Chand Audit Manager Vikash Son Senior Accountant Della Shaw Facility Supervisor Sera Vakaloloma Facility Supervisor Permal Swamy Ground Superintendent Vaseva Nasaroa Executive Assistant Vijay Chetty Maintenance Supervisor Kelera Naituku Facility Supervisor Jale Vunisa Facility Supervisor Praneel Ram Facility Supervisor 7 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 CEO’s Report While there have been many highlights throughout the 2017-2018 Financial Year, the most memorable, with perhaps the greatest long-term impact, was the official commissioning of the new Fiji Sports Council Head Office and the re-opening of the refurbished FMF Gymnasium by the Honorable Prime Minister, Voreqe Bainimarama.
The Fiji Sports Council was proud to host the Honorable Prime Minister and other distinguished guests at the momentous occasion, which marked a transformation for both the Fiji Sports Council and the FMF Gym.

For the first time, the Fiji Sports Council has a dedicated Head Office.

Before this, for the past 40 years, the Council has operated out of five separate administration buildings, some built in the Second World War and others converted from facility changing rooms.
Transformation While the transformation was taking place, the Fiji Sport Council staff worked under even more difficult circumstances, with departments even further spread out than before, and often in very constrained spaces.

My heartfelt thanks goes to all FSC staff.

I wish to commend you all for maintaining the highest standards of professionalism and commitment during that period.

The refurbished FMF Gymnasium now has new roofing and flooring and a state- of-the-art sound system.
The building has withstood years of battling weather conditions and hosting back-to-back events, yet we have still been able to gain venue hosting rights for countless internationals and Oceania Championships, as well as high-end corporate functions.

Improved service delivery Of equal if not greater importance, our customers will now experience improved service delivery.
No longer will clients have to spend valuable time walking from department to department, from building to building, to complete booking arrangements.

Now, bookings can be completed efficiently and quickly, with all departments housed together.

This ensures that the booking of venues is allocated in a fair and equitable, first come, first served basis.
With the opening of the new, fully integrated Head Office and FMF Gym, we can truly become the professional body capable of delivering the best in hosting events, sports and physical activity in Fiji.

We have a base from which we can oversee professionally the entire sporting facility network managed by the Council, and so support Government’s sports development agenda.
Capital works projects It has been an exciting time to see the Council’s five-year strategic plan for capital works projects coming to life.

We also saw the closing of the Vodafone Arena in March 2018 in order to begin a refurbishment on a scale that this facility merits.
The Vodafone Arena has hosted many firsts, bringing pride to the Council and the nation as a whole, achieving international hosting rights such as the Oceania 8 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 Championships in basketball, Futsal, volleyball, taekwondo, karate, weightlifting and table tennis.
World netball number one team, Silver Ferns toured in 2015 and top national events such as the Women’s Expo, Fiji Showcase, Vodafone Hibiscus Festival, Fiji Sports Awards, Fiji Film Awards, concerts and tertiary programs continue to return on an annual basis.

Following the renovations, the Vodafone Arena will be the first venue in Fiji to assist Weightlifting Fiji in hosting the IWF World Junior Championship in 2019, while Netball Fiji has won their bid to host the World Youth Championship in 2022.
With the growth of urban and youthful populations, it has become increasingly important to invest in facilities to provide opportunities for participation in sports at all levels, to holistically enhance the lives of all age groups, while bringing together the various sectors of our community.
Facilities for all As the Honorable Prime Minister emphasized in his remarks at the opening celebrations, sporting venues are to be used, not just by high performance athletes, but by all, including women, young people, people with disabilities, the elderly; all are entitled to use these athletic spaces, to keep healthy and active.
9 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 At Fiji Sports Council, we are proud to provide venues that support spiritual, educational, and cultural occasions, as well as important family milestones such as weddings and birthday celebrations.

well-appointed and well-managed facilities for their events.

My thanks also to every patron who used our facilities during the past year.
We are proud of the contribution we make to the health and well-being of all Fijians, by providing venues and facilities for sport and active recreational activities that bring people from all walks of life together, so that through sport, stronger bonds can be formed.

Appreciation I wish to thank my Executive Management team for their dedication and professionalism.
My thanks also to every member of our FSC Family, as well as all the hardworking flexi-workers, whose tireless efforts contribute enormously to the realization of our vision and mission statements.

I wish to express my sincere gratitude to the Chairman for his unstinting support and guidance and to the Fiji Sports Council Board Directors, whose business acumen, combined with their technical expertise, has been invaluable.
I wish to record my sincere appreciation to our Government for its indispensable and ongoing support that is essential for the realization of our vision for the Fiji Sports Council.

Thank you.

My sincere thanks to our key partners, for their continuing and valuable support, and to the national sporting organizations and their respective district associations, for demonstrating their confidence in our ability to provide Litiana Loabuka Chief Executive Officer 10 Photo courtesy of Department of Information.
FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 Financial Performance The Fiji Sports Council had a stimulating and active 2018 financial year with the re-opening on 26th January 2018 of the FMF Gymnasium and the inclusion of the new Head Office.

The re-opening of this upgraded facility made it available for the hosting of major international and local events.
With the start of the Vodafone Arena renovation program in March 2018, further challenges were faced, with the Sports Council having to manage operations with one of the highest earning facilities being closed.

This resulted in a loss of income for the remaining months of the financial year.

The Financial Year in Review The total revenue reported for the Financial Year ended July 2018 amounted to $7,909,479.

Total expenditure was recorded at $11,717,868.


The graph below shows the comparison between years 2016 and 2017.

Net Performance Comparison 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - -2,000,000 -4,000,000 Revenue Expenditure Net Profit/Loss Operating Profit/Loss 2016 (7 Months) 2017 2018 The operating profiit showed an insignificant decline in comparison to year 2017, however, it was a notable increase compared with other prevoius years.
The decline was due to the closures of the FMF Gymnasium from August 2017 until January 2018, and the Vodafone Arena from March 2018 until November 2019, in response to the major renovations being carried out on the facilities.

The Council sustained its ability to generate revenue in maintaining the daily operations even with the closure of its major income generating facilities for renovations.
The Government of Fiji once again extended its support in terms of financial assistance through the capital grant to the Council, in order to begin with the Vodafone Arena renovation works.
11 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 Revenue Comparison Expenditure Comparison 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - 2018 2017 - 2018 2017 Hire Income Concession Income Rental Income Administrative Operating Personnel Signage Income Tattslotto Other Revenue Interest Depreciation The Council continued to strengthen its financial processes, initiated more income streams to invest in, and worked within the budgetary limits of spending.
Net Worth The Council was worth approximately $75m for the period ended July 2018, which includes the Council’s fixed assets including the property, plant and equipment with its total value of $146m.

Year End Results & Going Forward The Council has once again delivered a commendable performance,, despite being financially and operationally challenged by the closure of its two valuable facilities.
The Council is ready for a more optimistic year ahead with the anticipated re-opening of the Vodafone Arena in 2019.

The Council continues its efforts in performance growth and in maintaining and delivering service excellence to its valued customers.
12 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Financial Statements FOR THE YEAR ENDED 31 JULY 2018 CONTENTS Council’s Report Statement by the Board Independent Auditor’s Report Statement of Comprehensive Income Statement of Changes in Equity Statement of Financial Position Statement of Cash Flows Notes to the Financial Statements Detailed Income Statement 14 16 17 - - 38 39-40 DIRECTORY Nature of Business: Registered Office: Board Members: Board Secretary: Bankers: Offices: To promote and foster the development of amateur sports and recreation in Fiji including supporting and managing sporting facilities in Fiji.
FMF Gymnasium 220 Laucala Bay Road Suva Fiji Peter Mazey Daniel Lobendahn Colin Philp Lt. Col Ifereimi Vasu Vijendra Kumar Sundar Josefa Sania Joel Abraham Sakiasi Seru Sharon Smith Losalini Waqausa ANZ Banking Group Limited ANZ House Suva Bank South Pacific Suva Laucala Bay Road Suva Lawaqa Park Sigatoka 13 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL COUNCIL’S REPORT FOR THE YEAR ENDED 31 JULY 2018 In accordance with a resolution of Board, the members herewith submit the statement of Financial Position of Fiji Sports Council as at 31 July 2018, the related statement of Profit or Loss and other Comprehensive Income, statement of Changes in Equity and statement of Cash Flows for the year then ended and report as follow: 1.
The Board Members in office at the date of this report are: - Peter Mazey - Daniel Lobendahn - Colin Philp - Lt. Col Ifereimi Vasu - Vijendra Kumar Sundar - Marigold Moody - Parmesh Chand - Elesi Ketedromo - Josefa Sania - Joel Abraham - Sakiasi Seru - Sharon Smith 2.
Principal Activity Resigned Current Current Current Current 24/11/2020 17/05/2018 31/03/2018 16/04/2018 Current 30/04/2019 23/01/2020 Current To promote and foster the development of amateur sports and recreation in Fiji including supporting and managing sporting facilities in Fiji.

3.

Operating Results The Council recorded a loss for the year of $3,808,389 [2017: Loss of $3,576,444] 4.
Bad and Doubtful Debts Prior to the completion of the Council’s accounts, the Members took reasonable steps to ascertain that action has been taken in relation to writing off bad debts and the making of provision for doubtful debts.

In the opinion of the Board, adequate provision has been made for doubtful debts.

5.
5.

Current Assets Prior to the completion of the Financial Statements of the Council, the Board took reasonable steps to ascertain whether any current assets were likely to realise in the ordinary course of the business, their values as shown in the accounting records of the Council.

Where necessary these assets have been written down or adequate provision has been made to bring the values of such assets to an amount they are 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 the current assets in the Council’s Financial Statements misleading.

6.

Events subsequent to balance date Subsequent to year end, the World Health Organization (WHO) declared the Coronavirus (COVID 19) a “Public Health Emergency of International Concern”.
Whilst measures and policies have been taken by the national government and nearby trading countries to prevent the spread of the virus, the financial reporting impact of the virus on amounts and estimates reported or used in the preparation of the 2018 financial statements is not expected to be material.
Other than this, 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 to affect significantly the operations of the Council, the results of those operations, or the state of the affairs of the Council, in subsequent financial years.

14 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL COUNCIL’S REPORT (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 7.
Unusual Transaction In the opinion of the Board, the results of the Council during the financial year were not substantially affected by any item, transaction or event of an abnormal character nor has there arisen between the end of the financial year and the date of this report any item, transaction or an event of an abnormal character likely in the opinion of the Board to affect substantially the results of the operations of the Council in the current financial year.
Significant Events during the year There were no significant changes in the operations of the Council during the financial period.

Related Party Transaction In the opinion of the Board, all related party transactions have been adequately recorded in the books of the Council.

8.

9.

10.

Going Concern The financial statement of the Council have been prepared on a going concern basis.
We consider the application of going concern principle to be appropriate in the preparation of this financial statement and we believe that the Council has adequate funds to meet its liabilities as and when they fall due in the next 12 months.

11.
Other Circumstances As at the date of this report: (i) No charge on the assets of the Council has been given since the end of the financial year to secure the liabilities of any other person; (ii) No contingent liabilities has arisen for which the Council could become liable; and (iii) No contingent liabilities or other liabilities of any Council has become or is likely to become enforceable within the year after the end of the financial year which in the opinion of the Board will or may substantially affect the ability of the Council to meet its obligation as and when they fall due.
As at the date of this report the Board are not aware of any circumstances that have arisen not otherwise dealt with in this report which would make adherence to the existing method of valuation of assets or liabilities of the Council misleading or inappropriate.

Dated at Suva this ______________ day of _____________ 2020.

For and on behalf of the Board and in accordance with a resolution of the Board.
……………………………… Chairman ……………………………… Date ……………………………… Member ……………………………… Date 15 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Statement by the Board FOR THE YEAR ENDED 31 JULY 2018 In accordance with a resolution and in the opinion of the members of FIJI SPORTS COUNCIL we state that:- (i) (ii) the accompanying statement of Comprehensive Income is drawn up so as to give a true and fair view of the results of the Council for the year ended 31 July 2018; the accompanying statement of Financial Position is drawn up so as to give a true and fair view of the state of affairs of the Council as at 31 July 2018; (iii) the accompanying statement of Changes in Equity is drawn up so as to give a true and fair view of the changes in equity of the Council for the year ended 31 July 2018; (iv) the accompanying Statement of Cash Flows is drawn up so as to give a true and fair view of the cash flows of the Council for the year ended 31 July 2018; (v) at the date of this statement, there are reasonable grounds to believe that the Council will be able to pay its debts as and when they fall due; and (vi) all related party transactions have been adequately recorded in the books of the Council and reflected in the financial statements.
Dated at Suva this ______________ day of _____________ 2020.

For and on behalf of the Board and in accordance with a resolution of the Board.
……………………………… Chairman ……………………………… Date ……………………………… Member ……………………………… Date 16 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Independent Audit Report FOR THE YEAR ENDED 31 JULY 2018 INDEPENDENT AUDITOR’S REPORT To the Board Members of Fiji Sports Council Report on the Audit of the Financial Statements Opinion I have audited the accompanying financial statements of Fiji Sports Council (“the Council”), which comprise the statement of financial position as at 31 July 2018, statement of comprehensive income, statement of changes in equity and statement of cash flow for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Fiji Sports Council as at 31 July 2018, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS).

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

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Emphasis of Matter 1.

Attention is drawn to Note 28 of the financial statements which notes the novel coronavirus (COVID-19) global pandemic subsequent to 31 July 2018 and how this has been considered by the Council in the preparation of the financial statements.

As set out in Note 28, no adjustment have been made to the financial statements as at 31 July 2018 for the impacts of COVID-19.

2.
2.

The Council has not undertaken a full review on impairment of assets with zero book value totaling $4,829,003 included in its property, plant and equipment (Note 16).

In addition, the Council is yet to carry out a review of the depreciation rates and the remaining economic useful lives of individual and major classes of property, plant and equipment in a progressive and structured manner for the consideration and review by those charged with governance.
My opinion is not qualified in respect of these matters.

Responsibilities of Management and Those Charged with Governance for the Financial Statements The management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Council’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible of overseeing the Council’s financial reporting process.
17 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Independent Audit Report (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 Auditor’s Responsibility for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (ISA) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISA, I exercise professional judgement and maintain professional scepticism throughout the audit.

I also: ∫ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

∫ 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 Council’s internal control.
∫ Evaluate the appropriateness of accounting policies uses and the reasonableness of accounting estimates and related disclosures made by management.

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

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

However, future events or conditions may cause the Council 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.

∫ I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
Report on Other Legal and Regulatory Requirements In my opinion, the financial statements have been prepared in accordance with the requirements of the Fiji Sports Council Act Cap 271A in all material respects, and; a) I have been given all information, explanations and assistance necessary for the conduct of the audit; and b) the Council has kept financial records sufficient to enable the financial statements to be prepared and audited.
Ajay Nand AUDITOR-GENERAL Suva, Fiji 05 January, 2021 18 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Statement of Comprehensive Income FOR THE YEAR ENDED 31 JULY 2018 Revenue Operating income Other income Concession income Government Grant Total Revenue Less: Cost of Sales Gross Profit Expenditure Administrative expenses Operating expenses Other operating expenses Personnel expenses Total Expenditure Notes 31 July 2018 31 July Operating Profit before Depreciation, Interest and Tax 3,315,267 3,488,019 Depreciation Interest 6,924,036 199,620 6,911,069 153,394 Net Operating Loss Before Income Tax (3,808,389) (3,576,444) Other Comprehensive Income Impairment gain - - Total Comprehensive Loss for the year (3,808,389) (3,576,444) The Statement of Comprehensive Income is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 23 - 40.
19 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Statement of Changes in Equity FOR THE YEAR ENDED 31 JULY 2018 Revaluation Reserves Accumulated Funds Total Balance as at 01 January 2015 Impairment Gain - Property revaluation surplus Net loss for the year ended 31 December 2015-Restated 108,000 88,207,210 - 1,569,321 - (4,500,432) 1,677,321 88,207,210 (4,500,432) Balance as at 31 December 2015 88,315,210 (2,931,111) 85,384,099 Net loss for the seven months ended 31 July 2016 - (2,859,597) (2,859,597) Balance as at 31 July 2016 88,315,210 (5,790,708) 82,524,502 Net loss for the year ended 31 July 2017 - (3,576,444) (3,576,444) Balance as at 31 July 2017 88,315,210 (9,367,152) 78,948,058 Net loss for the year ended 31 July 2018 - (3,808,389) (3,808,389) Balance as at 31 July 2018 88,315,210 (13,175,541) 75,139,669 The Statement of Changes in Equity is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 23 - 40.
20 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Statement of Financial Position AS AT 31 JULY 2018 Notes 31 July 2018 31 July 2017 Current Assets Cash & cash equivalents Inventory Trade and other receivables Prepayments and deposits Total Current Assets Non - Current Assets Prepayments and deposits Property, plant and equipment Total Non - Current Assets Total Assets Current Liabilities Bank Overdraft Trade and other payables Interest Bearing Borrowings Total Current Liabilities Non - Current Liabilities Interest Bearing Borrowings Deferred Income Total Non - Current Liabilities Total Liabilities NET ASSETS Equity Reserves Accumulated Funds TOTAL EQUITY 13 (a) 14 15 (a,b) 15 (c) (i) 15 (c) (ii) 16 13 (b) 17 18 (i) 18 (i,ii) 19 3,764,532 55,434 770,949 130,454 4,721,369 470,700 51,962 966,109 118,060 1,606,831 242,274 141,381,493 141,623,767 242,274 144,531,508 144,773,782 146,345,136 146,380,613 - 923,526 625,679 1,549,205 6,045,090 63,611,172 69,656,262 10 1,222,585 345,846 1,568,441 4,450,611 61,413,502 65,864,113 71,205,467 67,432,554 75,139,669 78,948,059 88,315,210 (13,175,541) 88,315,210 (9,367,152) 75,139,669 78,948,059 For and on behalf of the Board and in accordance with a resolution of the Board.
……………………………… Chairman ……………………………… Date ……………………………… Member ……………………………… Date The Statement of Comprehensive Income is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 23 - 40.
21 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Statement of Cashflows FOR THE YEAR ENDED 31 JULY 2018 Cash flows from operating activities Receipts from customers Payments to suppliers, creditors and employees Interest and Finance costs paid Net cash used by operating activities Cash flows from investing activities Acquisition of Property, Plant & Equipment Proceeds from government grants Disposal of Property, Plant & Equipment Net cash used by investing activities Cash flows from financing activities Proceeds from Interest bearing liabilities Net Cash provided by financing activities Net (Decrease)\ Increase in Cash Held Cash at Bank Balance at the Beginning of the Year Notes 31 July 2018 ($) 31 July 2017 ($) 5,568,285 (4,896,745) (199,620) 471,920 (3,774,020) 4,721,630 - 947,610 1,874,312 1,874,312 3,293,842 470,690 5,764,736 (5,527,063) (153,394) 84,279 (1,606,284) 3,248,852 - 1,642,568 (1,779,606) (1,779,606) (52,760) 523,446 Cash and cash equivalents at the end of the year 13 3,764,532 470,690 The Statement of Cash Flows is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 23 - 40.
22 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 31 JULY 2018 1.

GENERAL INFORMATION To promote and foster the development of amateur sports and recreation in Fiji including supporting and managing sporting facilities in Fiji.

Fiji Sports Council (the “Council”) is a body corporate incorporated under Fiji Sports Council Act Cap.271A and domiciled in Fiji.
The address of the Council’s registered office is 220 Laucala Bay Road, Suva, Fiji Islands.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted by Fiji Sports Council are stated to assist in the general understanding of these financial statements.

These policies have been consistently applied except as otherwise indicated.
2.1 Basis of Preparation The financial statements of Fiji Sports Council have been prepared in accordance with the International Financial Reporting Standards (IFRS).

They have been prepared under the historical cost convention, as modified by the revaluation of investments property and derivative financial instruments at fair value.
In the application of IFRS, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments.

Actual results may differ from these estimates.


The estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
Judgments made by the Council in the application of IFRS for SMEs that have significant effects on the financial statements and estimated with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The principal accounting policies adopted in the preparation of these financials statements are set out below.

These policies have been consistently applied to all the periods presents, unless otherwise stated.
New and amended standards adopted by the Council There are no IFRSs or IFRIC interpretations that are effective for the first time for the financial year beginning on or after 1 August 2016 that would be expected to have a material impact on the entity.
New standards, amendments, annual improvements and interpretation that have been issued and effective as at 01 January 2018 Certain new standards, amendments, annual improvements and interpretation which have been effective from 1 January 2018 and have not been adopted early in these financial statements, will or may have an effect on the council’s future financial statements.
The council intends to adopt these standards, amendments, annual improvements and interpretation if applicable, when they become effective.

New standards which are applicable to the Council are: 23 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2.1 Basis of Preparation (continued) New standards, amendments, annual improvements and interpretation that have been issued and effective as at 01 January 2018 (continued) IFRS 9 - ‘Financial instruments’ This standard on classification and measurement of financial assets and financial liabilities will replace IAS 39, ‘Financial instruments: Recognition and measurement’.

IFRS 9 has two measurement categories: amortised cost and fair value.
All equity instruments are measured at fair value.

A debt instrument is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest.

For liabilities, the standard retains most of the IAS 39 requirements.

These include amortised-cost accounting for most financial liabilities, with bifurcation of embedded derivatives.
The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting mismatch.

IFRS 15 - Revenue from Contracts with Customers IFRS 15 was issued in May 2014 and establishes a new five-step model that will apply to revenue arising from contracts with customers.
Under IFRS 15 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The principles in IFRS 15 provide a more structured approach to measuring and recognising revenue.

The new revenue standard is applicable to all entities and will supersede all current revenue recognition requirements under IFRS.
Either a full or modified retrospective application is required for annual periods beginning on or after 1 January 2018 with early adoption permitted.

The council is will assess the impact of IFRS 15 and plans to adopt the new standard in the next financial year, on the required effective date.
IFRS 16 - Leases “IFRS 16 Leases, which supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC 15 Operating Leases-Incentives and SIC 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

IFRS 16 eliminates the classification by a lessee of leases as either operating or finance.

Instead all leases are treated in a similar way to finance leases in accordance with IAS 17.
Under IFRS 16, leases are recorded on the balance sheet by recognising a liability for the present value of its obligation to make future lease payments with an asset (comprised of the amount of the lease liability plus certain other amounts) either being disclosed separately in the statements of financial position (within right-of-use assets) or together with property, plant and equipment.
The most significant effect of the new requirements will be an increase in recognised lease assets and financial liabilities.

IFRS 16 applies to annual periods commencing on or after 1 January 2019.

Earlier adoption is permitted, but only IFRS 15 Revenue from Contracts with Customers is also adopted.
The coucil will assess the impact of IFRS 16 and plans to adopt the new standard on the required effective date.” 2.2 Foreign Currency Translation i. Functional and presentation currency The financial statements are presented in Fiji Dollars ($FJ), which is the entity’s functional currency.

ii.

Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in profit or loss within ‘finance income or costs’.

All other foreign exchange gains and losses are presented in profit or loss within ‘other (losses)/gains – net’.
24 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 2.3 Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, demand deposits and other short-term highly liquid investments with original maturities of three months or less.

2.4 Trade Receivables Trade receivables are recognised initially at the transaction price.
They are subsequently measured at amortised cost using the effective interest method less provision for impairment.

A provision for impairment of trade receivables is established when there is objective evidence that the Council will not be able to collect all amount due according to the original terms of the receivables.

2.5 Inventories Inventories are stated at a lower of cost and net realizable value.

The cost of inventory has been determined on a weighted average cost basis.
This includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition.

No provision has been made for slow moving or obsolete inventories on the basis that the amount is considered to be immaterial.

At each reporting date however, inventories are assessed for impairment.

If inventory is impaired, the carrying amount is reduced to its selling price less cost to complete and sell.

The impairment loss is recognised immediately in profit or loss.
2.6 Property, Plant and Equipment Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses.

Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the Management.
The entity adds to the carrying amount of an item of property, plant and equipment the cost of replacing parts of such an item when that cost is incurred if the replacement part is expected to provide incremental future benefits to the Council.

All other repairs and maintenance are charged to profit and loss during the year in which they are incurred.
Depreciation Depreciation on the other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method on the basis of maximum rates allowed by Fiji Revenue and Customs Authority.
Sports equipment Motor vehicles Plant & Equipment Office Equipment Concession Equipment Furniture & Fittings Leasehold Land Leasehold Building Amortization Rates 1-2 Years 1-5 Years 1-5 Years 1-5 Years 1-3 Years 1-10 Years 82-99 Years 1-20 Years The following upgrades of the Council’s facilities over the years are amortized at a rate of 11.214% per annum.

The amortized amount is transferred to the deferred income account every year.
Upgrade of ANZ Stadium-2012- $21,181,322 Upgrade of Lawaqa Park-2015- $2,575,936 Upgrade of FMF Gymnasium-2016- $3,867,633 Donation from Government-Motor Vehicles-2018-$109,174, Scoreboard-2018-$25,300 An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Capital work in progress is not depreciated.
25 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 2.6 Property, Plant and Equipment (continue) Expenditure Expenditure incurred to replace a component of an item of property, plant and equipment that is accounted for separately, including major improvements, renovations and overhaul expenditure is capitalized only when it increases the future economic benefits embodied in the items of property, plant and equipment.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within gains/(losses) on sale of fixed assets in the Statement of Comprehensive Income.

2.7 Provisions Provisions are recognised when the Council has a present legal or constructive obligation as a result of past events.

It is probable that a transfer of economic benefits will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the amount expected to be required to settle the obligation.

2.8 Trade Payables Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

2.9 Employee Benefits Superannuation plans All employees who are Fiji Citizens belong to the Fiji National Provident Fund, an independent statutory administered funds.
Obligations for contributions to defined superannuation plans are recognized as an expense in the profit and loss as incurred.

Wages, salaries and annual leave Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the balance date represent present obligations in respect of employees service up to the balance date.
They are calculated at undiscounted amounts based on remuneration rates that the Council expects to pay as at balance date including related on-costs, such as payroll tax.

Increases or decreases in this obligation are recognized in the profit or loss.

Employee benefits long-service leave The liability for employee benefit obligations related to long service leave are recognized in the profit and loss when they are incurred.

2.10 Borrowings Borrowings are recognised initially at the transaction price.
Borrowings are subsequently stated at amortised cost.

Interest expense is recognised on the basis of the effective interest method and is included in finance costs.

26 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 2.11 Leases Assets acquired under finance leases are included as property, plant and equipment in the statement of Financial Position.
Finance leases effectively transfer from the lesser to the lessee substantially all the risks and benefits incidental to ownership of the leased property.

Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased property and the present value of the minimum lease payments.

Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding.
The corresponding rental obligations, net of finance charges are included in other long-term payables.

The interest portion of the finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

The property, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of the asset or the lease term.
2.12 Deferred income Donor grants are not recognized as income until there is reasonable assurance that the Council will comply with the conditions attached to them and the grant will be recovered.

Non monetary grants relating to the donations of the property, plant and equipment are taken to property, plant and equipment and deferred income at cost.

The deferred income is recognized as income or expenditure over the periods necessary to match the depreciation of the related donated assets.
The benefit brought to account is in the same proportion that depreciation bears to the cost of the asset acquired with the grant.

Donated assets are initially recorded at cost or at valuation.

2.13 Revenue Recognition Services Rendered Revenue from hire of facilities, advertising signs and concession is recognized in the profit or loss on an accrual basis.
The entity recognizes revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the entity’s activities.

Sale of Goods Sale of goods are recognised when the Council sells a product to the customer as control passes to the customer on the day the transaction takes place.

Retail sales are usually cash.


Interest Income Interest income is recognized in the profit or loss on an accrual basis.

Grant Income Grant receivable from government as compensation for costs already incurred for immediate financial support, with no future related costs, is recognized as income in the period in which it is receivable.

2.14 Net Finance Charges Finance cost comprises interest expense on borrowings and leases and is recognized as its accrues in profit or loss.
Finance income comprises interest income on funds invested in financial assets.

Interest income is recognized as it accrues in profit or loss.

2.15 Income Tax The Council is exempt from income tax in accordance with section 16 (24) of the Income Tax Act.

Revenue received from Pacific Instant Lottery is subject to gambling turnover tax under the provisions of the Gambling Turnover Tax Decree 1991.
27 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 2.16 Value Added Tax (VAT) Revenue, expenses and assets are recognised net of the amount of respective VAT except:- - where the value added tax incurred on the purchase of assets or services is not recoverable from the taxation authority, in which case the value added tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and - receivables that are stated with the amount of value added tax included and payables that are stated with the amount of value added tax included.
The net amount of value added tax recoverable or payable to the tax authority is included as part of the receivables or payables in the statement of Financial Position.

2.17 Comparatives The comparative are the audited figures for the year ended 31 July 2017 and have been regrouped where considered necessary.

2.18 Change in balance date The Council changed it’s balance date to align it’s reporting with that of the Government of Fiji.
The balance date of the Government budget and financial reporting is July from 2016 onwards.

3.

FINANCIAL RISK MANAGEMENT Overview The Council’s activities expose it to a variety of financial risks; market risk (including currency risk and price risk), credit risk and liquidity risk.

The Council’s controls over these risks focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Council’s financial performance.
Risk management is carried out by Executive Management.

Executive Management identifies, evaluates and monitors financial risks in close co-operation with the operating units.

The Board provides policies for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity.

The Board has the overall responsibility for the establishment and oversight of the Council’s risk management framework.
The Council’s risk management policies are established to identify and analyse the risks faced by the Council, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Council’s activities.

The Council does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
3.1 Market Risk Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rate, equity prices, and credit spreads will affect the Council’s income or the value of its holdings of financial instruments.

The objective of market risk management is to control market risk exposures within acceptable parameters while optimising the return on risk.

Unfavourable changes to duty and tax regulations may expose the Council to a decline in revenue.
To minimise this risk, the Council implemented appropriate strategies to ensure that products and prices remain attractive.

The Council operates in Fiji and changes to government and the policies they implement affect the economic situation and ultimately the revenue of the Council.

To address this, the Council reviews its pricing and product range regularly and responds appropriately to these changes.

• Foreign Exchange Risk The Council undertakes transactions denominated in foreign currencies.
Consequently, exposures to exchange rate fluctuation.

Exchange rate exposures are managed within approved policy parameters.

Major foreign exchange transactions relates to importation of goods of which settlement is based on spot rates.

Foreign currency risk arises from recognised assets and liabilities that are denominated in a currency that is not the Council’s functional currency.
As a measure, the Council negotiates competitive rates with its bankers to minimise losses and maximise gains when foreign exchange receipts and payments become due.

28 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 3.
FINANCIAL RISK MANAGEMENT (continue) 3.1 Market Risk (continue) • Price Risk The Council does not have investments in equity securities and therefore is not exposed to equity securities price risk.

The Council is not exposed to commodity price risk.
3.2 Credit Risk Credit risk is the risk of financial loss to the Council if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Council’s receivables from customers and investment securities.

• Trade and Other Receivables The Council’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the demographics of the Council’s customer base, including the default risk of the industry in which customers operate, as these factors may have an influence on credit risk, particularly in the currently deteriorating economic circumstances.

3.3 Liquidity Risk Liquidity risk is the risk that the Council will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another cash financial asset.
The Council’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when clue, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Council’s reputation.

3.4 Operational Risk Operational risk is the risk of loss arising from systems failure, human error, and fraud to external events.
When controls fail to perform, operational risks can cause damage to reputation, have legal or regulatory implications, or lead to financial crisis.

The Council cannot expect to eliminate all operational risk, but through a control framework and by monitoring and responding to potential risks, the Council is able to manage risks.

Controls include effective segregation of duties, access, authorisation and reconciliation procedures, staff education and assessment procedures.
The following table details the Council’s maturity profile of financial instruments as at 31 July 2018: Less than 1 year $FJ 3,764,532 770,949 4,535,481 Fixed Maturity Dates 1-2 years $FJ 2-3 years $FJ 3-4 years $FJ 4-5 years $FJ Total $FJ - - - - - - - - - - - 3,764,532 770,949 4,535,481 Financial Assets: Cash on hand and at bank Trade and other receivables 4.
CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
4.1 Impairment of Accounts Receivable Impairment of accounts receivables balance is assessed at an individual as well as on a collective level certain debtors in the + 90 days category (excluding those covered by a specific impairment provision) are estimated to have been impaired and are accordingly provided for.

29 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 4.
CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS (continue) 4.2 Impairment of Property, Plant and Equipment and Investment Property The Council assesses whether there are any indicators of impairment of all property, plant and equipment and investment property at each reporting date.

Property, plant and equipment and investment property are tested for impairment and when there are indicators that the carrying amount may not be recoverable, a reasonable provision for impairment is created.
For the year ended 31 July 2018 no provision for impairment has been made as the Council reasonably believes that no indicators for impairment exist.

4.3 Provision for Stock Obsolescence Provision for stock obsolescence is assessed and raised on a specific basis based on a review of inventories.

Inventories considered obsolete or non-saleable are written off in the period in which they are identified.
31 July 2018 ($) 31 July 2017 ($) 5 6 OPERATING INCOME Hire Income Rental Income Signage Income Tattslotto OTHER INCOME Amortization of government grant Sponsorship/Donation Media Club-Subscription Club-Membership School Programs Security Towels Tickets Gain/Loss on Sale of Assets Lighting - LED Miscellaneous Income Grass Sales Sports Equipment for Sale T-Shirt Sales Recycled Items Tender Document Fees Personal Trainers Fees Staff Sales Share - 10% Unidentified Sales Storage Hire Training/Board Room Hire FNU Training Grant Phone/Equipment/Machinery Sports Camp Income Business House Income 30 2,326,293 222,687 896,244 677,272 4,122,496 2,523,960 5,505 79,369 58,231 61,440 - 1,450 12,467 - 2,274 - 2,197 15,000 376 1,783 892 83 82 - 769 2,165 17,586 - 20,988 - 11,807 2,818,424 2,661,746 248,527 852,102 626,258 4,388,633 2,456,864 9,172 66,670 55,493 62,562 4,823 - 13,230 1,869 - 1,287 - 110,451 43 826 792 - - 5 - - - 7,933 593 138 651 2,793,402 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 Government grant Operating Grant 31 July 2018 ($) 31 July 2017 ($) 458,716 458,716 The Council receives operating grant from the Ministry of Youth & Sports to facilitate utility bills for the Council facilities.
7 8 9 COST OF SALES Concession Purchases Liquor Purchases Other Purchases OPERATING EXPENSES Waste Disposal & Cleaning Utilities Travelling & Accomodation Licensing Communication Repair & Maintenance Motor Vehicle Inventory Shrinkage/Spoilage 10 ADMINISTRATIVE EXPENSES Advertising Audit Fees Accounting & Software Support Consultancy Legal Fees Departmental Supplies Printing Ticket/Books Printing Postage Stationery City Rates Insurance Bank Fees/Charges Computer & IT Expenses Computer/Printer Consumables Dues/Subscriptions Freight, Duty & Cartages 11 PERSONNEL EXPENSES Wages & Salaries Superannuation - Fiji National Provident Fund Acting Allowances FNU Levy Annual Leave Other Leaves Job Evaluation Other Staff Expenses - - FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 12 OTHER OPERATING EXPENSES Royalties/Levy Promotions/Giveaways/Gifts Plant/Nursery Signages Hiring & Leasing Staff Training Conferences & Meetings Registration Entertainment Compensation Charges Planning/Designing/Survey Compliance Equipment FSC Board Meeting Exp FSC Board Sevusevu Uniforms & Safety Gears/Supplies Rental Charges Staff Re-treat/Teambuilding Land Lease/Rentals First Aid & Medical Supplies Catering Business House Exp Equipment/Machinery for Hiring 13 CASH AND CASH EQUIVALENTS 31 July 2018 ($) 31 July 2017 ($) 1,623 2,091 - 12,446 89,176 1,431 10,756 702 8,435 - 18,775 - 596
 62,986 3,916 22,539 5,543 1,711 19,602 1,562 35,982 5,476 2,337 307,685 10,807 1,946 1,629 12,813 123,999 12,627 9,673 750 6,135 135 33,780 10,142 2,922 72,567 581 10,188 5,415 - 16,122 2,492 13,397 2,754 1,532 352,406 a.
For the purposes of Statement of Cash Flows, cash includes cash on hand and cash at banks.
Cash at the end of the reporting period as shown in the statement of cash flows comprises: Vodafone Arena Capital Account - 13086632 Operational Grant Account - 11334850 Gate-taking Account - 565845 Concession Account - 12199466 General Account - 565798 Draw Down Account - 12980803 BSP Rakiraki - 1716104 Petty Cash Cash Float 3,526,416 3 32,187 124,259 55,349 6 9,832 6,480 10,000 3,764,532 - - 66,042 147,931 117,320 112,918 9,978 3,000 13,511 470,700 The Vodafone Arena Capital account is restricted to the Vodafone Arena upgrade project only.
b.

Bank Overdraft Operational Grant Account - 11334850 - - 10 10 The Overdraft facility with ANZ Banking Group Limited is for working capital requirements of the Council.

The current approved limit is $300,000.

The securities for the above facility is disclosed in Note 18 of this financial statements.

The interest rate is 5% per annum.
32 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 13 CASH AND CASH EQUIVALENTS (continue) c. Reconciliation of Net Cash Provided by Operating Activities to Operating Loss After Income Tax 31 July 2018 ($) 31 July 2017 ($) Net Loss After Income Tax Add/(Less) Non Cash Items: Depreciation Amortization of government grant Changes in assets and liabilities during the financial year:- Decrease/(Increase) in Trade & Other Receivable (Increase)/Decrease in Inventories Increase in Trade & Other Payables Net Cash Provided by Operating Activities 14 INVENTORY Concession Inventory 15 RECEIVABLES (a) Trade Receivables Trade Debtors Less: Provision for doubtful debts (b) Other Receivables Others Debtors - Tattslotto Sundry Receivables Staff Debtors VAT Receivable Other Receivable * (3,808,389) (3,576,444) 6,924,036 (2,523,960) 591,687 182,766 (3,472) (299,060) 471,921 55,434 55,434 387,745 - 387,745 73,098 7,049 28,617 274,440 - 383,204 770,949 6,911,069 (2,456,864) 877,761 1,802 7,317 (802,600) 84,280 51,962 51,962 520,772 - 520,772 65,047 544 28,829 - 350,917 445,337 966,109 * The Ministry of Economy has paid off the VAT amounting to $350,917 on capital grant for 2016 to the Fiji Revenue & Customs Services in July 2018.
(c) Deposits & Prepayments (i) Current Other Deposits Paid Insurance Prepaid Dues/Subscriptions Prepaid Rates & Licenses FEA Deposits Licensing (ii) Non-current FEA Deposits 10,170 8,895 2,802 14,819 92,594 1,174 130,454 242,274 3,150 8,263 - 14,054 92,593 - 118,060 242,274 33 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 16 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are included in the accounts on the following basis: 31 July 2018 ($) 31 July 2017 ($) Leasehold improvements - Land Add: Addtions Less: Accumulated Depreciation Leasehold improvements - Buildings Add: Addtions Less: Accumulated Depreciation Motor Vehicles Add: Addtions Less: Accumulated Depreciation Plant and Equipment Add: Addtions Less: Accumulated Depreciation Furniture and Fittings Add: Addtions Less: Accumulated Depreciation Office & Concession Equipment Add: Addtions Less: Accumulated Depreciation Sports Equipment Add: Addtions Less: Accumulated Depreciation Business Software Add: Addtions Less: Accumulated Depreciation Work In Progress 57,669,339 - (3,665,562) 54,003,777 118,403,172 3,931,907 (36,527,134) 85,807,945 57,669,339 - (3,003,086) 54,666,253 118,403,172 40,209 (30,451,165) 87,992,216 459,627 322,694 (491,541) 290,780 85,700 14,772 (73,088) 27,384 420,659 19,102 (415,379) 24,382 321,403 58,244 (286,732) 92,915 327,705 38,987 (225,465) 141,227 3,234 - (1,513) 1,721 991,362 991,362 459,627 193,015 (451,552) 201,090 85,700 4,105 (50,644) 39,161 420,659 - (393,006) 27,653 321,403 21,050 (245,959) 96,494 327,705 7,262 (166,532) 168,435 - 3,234 (435) 2,799 1,337,407 1,337,407 Total Written Down Value 141,381,493 144,531,508 34 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 $ l a t o T , 3 8 2 6 0 6 1 , , 5 0 6 7 8 6 7 7 1 , $ - , 7 0 4 7 3 3 1 , , 8 8 8 3 9 2 9 7 1 , , 0 2 0 4
 7 7 3 , , 7 0 4 7 3 3 1 , , 8 8 8 3 9 2 9 7 1 , , 7 0 4 7 3 3 1 , - 2 6 3 1 9 9 , , 7 0 4 7 3 3 1 , , ) 7 0 4 7 3 3 1 ( , , ) 7 0 4 7 3 3 1 ( , $ - 4 3 2 3 , 4 3 2 3 , 4 3 2 3 , - - - $ $ $ $ $ $ $ $ 2 6 2 7 , 5 0 7 7 2 3 , 7 6 9 4 3 3 , 0 5 0 1 2 , 6 6 2 5 0 3 , 6 1 3 6 2 3 , - - 5 0 1 4 , 7 3 1 6 1 , 9 5 6 0 2 4 , 0 0 7 5 8 , 7 3 1 6 1 , 9 5 6 0 2 4 , 5 0 8 9 8 , 7 2 6 9 5 4 , 5 1 0 3 9 1 , 2 4 6 2 5 6 , - - - - 5 2 7 1 3 , 7 6 9 4 3 3 , 3 9 1 7 3 , , 6 1 3 6 2 3 - - - 7 3 1 6 1 , - - - - - - 2 0 1 9 1 , 9 5 6 0 2 4 , 5 0 8 9 8 , 7 6 6 0 1 , 2 4 6 2 5 6 , 9 7 6 9 2 1 , 9 0 2 0 4 , - , 2 7 1 3 0 4 8 1 1 , , 9 3 3 9 6 6 7 5 , , 1 8 3 3 4 4 8 1 1 , , 9 3 3 9 6 6 7 5 , , 2 9 2 4 5 5 2 , - , 7 0 4 7 3 3 1 , , 1 8 3 3 4 4 8 1 1 , - - - , 9 3 3 9 6 6 7 5 , , 8 0 9 7 6 0 3 8 1 , , 1 1 3 1 5 8 7 2 , , 9 6 0 1 1 9 6 , , 0 8 3 2 6 7 4 3 , , 0 8 3 2 6 7 4 3 , , 6 3 0 4 2 9 6 , , 6 1 4 6 8 6 1 4 , , 8 0 5 1 3 5 4 4 1 , 2 6 3 1 9 9 , 4 3 2 3 , 2 9 6 6 6 3 , , 0 1 5 3 6 3 7 3 1 6 1 , 1 6 7 9 3 4 , 2 7 4 0 0 1 , 1 2 3 2 8 7 , - - - - - - - 5 3 4 5 3 4 5 3 4 8 7 0 1 , 3 1 5 1 , 6 3 3 3 6 , 5 9 1 3 0 1 , 2 3 5 6 6 1 , 4 3 9 8 5 , 2 3 5 6 6 1 , 6 6 4 5 2 2 , 3 9 5 7 8 1 , 1 1 3 3 4 , , 4 0 9 0 3 2 1 9 6 9 3 , , 4 0 9 0 3 2 , 5 9 5 0 7 2 9 1 9 1 , 6 3 1 3 1 , 5 5 0 5 1 , 2 8 0 1 , 5 5 0 5 1 , 7 3 1 6 1 , 8 4 5 7 5 , 8 5 4 5 3 3 , 6 0 0 3 9 3 , 3 7 3 2 2 , 6 0 0 3 9 3 , 9 7 3 5 1 4 , 0 5 7 2 2 , 4 9 8 7 2 , 4 4 6 0 5 , 4 4 6 0 5 , 4 4 4 2 2 , 8 8 0 3 7 , 5 0 2 2 2 , 7 4 3 9 2 4 , 2 5 5 1 5 4 , 9 8 9 9 3 , 2 5 5 1 5 4 , 1 4 5 1 9 4 , , 7 0 4 7 3 3 1 , 9 9 7 2 , 5 3 4 8 6 1 , 3 1 4 5 9 , 2 8 0 1 , 3 5 6 7 2 , 1 6 1 9 3 , 0 9 0 1 0 2 , , 3 9 4 1 8 3 1 4 1 , 2 6 3 1 9 9 , 1 2 7 1 , 6 2 2 1 4 1 , 5 1 9 2 9 , - 2 8 3 4 2 , 4 8 3 7 2 , 0 8 7 0 9 2 , , 9 7 0 5 3 3 2 2 1 , , 9 3 3 9 6 6 7 5 , , 4 4 9 1 3 0 6 , , 1 2 2 9 1 4 4 2 , , 5 6 1 1 5 4 0 3 , , 5 6 1 1 5 4 0 3 , , 9 6 9 5 7 0 6 , 6 7 4 2 6 6 , , 0 1 6 0 4 3 2 , , 6 8 0 3 0 0 3 , 6 7 4 2 6 6 , , 6 8 0 3 0 0 3 , , 4 3 1 7 2 5 6 3 , , 6
 1 2 2 9 9 7 8 , , 5 4 9 7 0 8 5 8 , , 2 6 5 5 6 6 3 , - , 3 5 2 6 6 6 4 5 , , 7 7 7 3 0 0 4 5 , ffi & & t n a l P r o t o M & , 35 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 17 PAYABLES (a) Trade Payables Trade Creditors (b) Other Payables Other Payables Payroll Liabilities Provision for Audit Fees Advanced Deposits/Income VAT Liability Retention - Projects 18 INTEREST BEARING BORROWINGS i. Australia and New Zealand Banking Group Limited Opening Balance Add: Loan Drawn Less: Repayments Closing Balance This is represented by: Current Liabilities Non-current Liabilities 31 July 2018 ($) 31 July 2017 ($) 289,842 289,842 105,751 178,446 38,750 204,816 - 105,921 633,684 923,526 345,846 2,499,990 (625,678) 2,220,158 625,679 1,594,479 2,220,158 365,462 365,462 476,965 150,431 23,750 169,387 36,590 - 857,123 1,222,585 - 397,986 (52,140) 345,846 345,846 - 345,846
 This Loan was for FMF Gymnasium upgrade.
Interest was charged at a rate of 5.25% p.a.

The securities to be lapsed are a corporate guarantee and indemnity dated 21st February 2013 limited to the amount of $20m given by the Government of the Republic of Fiji on account of Fiji Sports Council to secure fully drawn advance.

ii.

Government of Fiji Included in Non-current Liabilities 4,450,611 4,450,611 The loan from FNPF to the Fiji Sports Council was for the construction of the Lawaqa Park in 1995.
The loan was paid by the Government of Fiji for and onbehalf of Fiji Sports Council to FNPF in full in 2013.
This loan agreement between Government of Fiji and Fiji Sports Council is arising from cabinet decision dated 30th August 2005 which outlined the following: a. the agreement be drawn up between the Government of Fiji and the Fiji Sports Council (FSC) to recover the loan paid by it to Fiji National Provident Fund; b. that the FSC commence payment of the principal amount after 84 months from the date of the agreement; and c. that the FSC will pay interest at 3% per annum on a semi annual basis.
The loan repayment will commence from 2022.
19 DEFERRED INCOME Opening balance Government grant received during the year Amortisation transferred to income statement 36 61,413,502 4,721,630 66,135,132 (2,523,960) 63,611,172 60,621,514 3,248,852 63,870,366 (2,456,864) 61,413,502 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 19 DEFERRED INCOME (continue) The deferred income includes facilities that were funded by the Government of China for the 2003 South Pacific Games.
The deferred income also includes the loan taken from ANZ which was paid off by the Government of Fiji for the upgrade of the ANZ Stadium in 2013 and the grant given by the Government of Fiji for the upgrade of Lawaqa Park in 2015.

The Council further recorded the grant given by the Government of Fiji for the upgrade of FMF Gymnasium in 2016, grant by the Government of Fiji for the upgrade of Vodafone Arena in 2017.
In 2018, the Council received two motor vehicles donated by the Fiji Government after successful hosting of international events.

In addition, the Fiji National Sports Commission purchased a scoreboard for the National Aquatic Center which was handed over to the Council to manage.

All the grant are amortised on an yearly basis except for the Vodafone Arena upgrade which is Work In Progress.
20 PRINCIPAL ACTIVITIES To promote and foster the development of amateur sports and recreation in Fiji including supporting and managing sporting facilities in Fiji.

21 ENTITY DETAILS i Registered Office FMF Gymnasium 220 Laucala Bay Road Suva 22 SEGMENT REPORTING ii Principal Place of Business FMF Gymnasium 220 Laucala Bay Road Suva Industry Segment i The Council operates predominantly in the sports and events industry.
ii Geographic Segment The Council operates in Fiji and therefore has only one geographical area for reporting purposes.

23 CAPITAL EXPENDITURE COMMITMENTS Commitments for capital expenditure approved and contracted is $13,895,213.

Commitments in respect of loans and approved credit commitments offered as at balance date amounted to $7,653,308 million out of which $5 million was advanced in May 2018 for the Vodafone Arena Upgrade.

24 CONTINGENT LIABILITIES & COMMITMENTS a.


Contingent Liabilities BW Holdings - The Company has sued Fiji Sports Council (FSC) for breach of contract.

- The Plaintiff (BW Holdings) has not pursued this action to trial or arbitration.

No steps has been undertaken for a period in excess of 6 years.

The lawyers of Fiji Sports Council are now making an application to strike out this matter.

- The Council is awaiting a hearing date to be set by the Suva High Court.

b.
b.

Operating Lease Commitments FSC has lease agreements with the following: i.

Native Land Trust Board to lease lots 1 & 2 of Lawqa & Rakirakilevu contained in lease 23401 in Sigatoka.

The lease is for term of 87 years, signed on 1January 1998 and ending in 2085.

The lease payment is $1,000 per annum.

ii.

Government of Fiji to lease lot 1 on Plan S. 1501 known as National Sport Complex contained in lease in Suva.

The lease is for term of 99 years, signed on 1 December 1978 and ending in 2077.
The lease payment is $100 per annum.

37 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Notes to and Forming Part of the Financial Statements (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 24 CONTINGENT LIABILITIES & COMMITMENTS (continued) b.

Operating Lease Commitments (continue) iii.

iv.

Government of Fiji to lease lot 1 on SO.

2659 known as Victoria Park contained in lease 12274 Suva.

The lease is for term of 99 years, signed on 1 January 1979 and ending on 1 January 2078.
The lease payment is $10 per annum.

Government of Fiji to lease lot 1 plan S4488 Muanivatu knows as National Aquatic & Netball Centre, contained in lease 13625.

The lease is for term of 99 years, signed on 1 November 2001 and ending on 1 November 2100.

The lease payment is $100 per annum.

v. Government of Fiji to lease lot 1 on SO 1143 at Veivadravadra, Sigatoka contained in lease 136333.

The lease is for term of 99 years, signed on 1 April 1984 and ending on 1 April 2083.
The lease payment is $100 per annum.

vi.

Government of Fiji to lease lot 69 & 70 at Navua known as Thomson Park, contained in lease 481769.

The lease is for term of 99 years, signed on 1 April 1999 and ending on 1 January 2098.

The lease payment is $500 per annum.

vii.

Native Land Trust Board to lease Lawaqa Park at Sigatoka, contained in lease 23401.

The lease is for term of 99 years, signed on 1 January 1986 and ending on 1 January 2085.

The lease payment is $7,000 per annum.

viii.


A crown lease agreement to lease lot 1 SO3262 Penang Reclamation contained in lease 13343 in Rakiraki, Ba.

The lease is for term of 99 years, signed on 1 January 1995 and ending on 1 July, 2094.

The lease payment is $100 per annum.

25 RELATED PARTIES All transactions that occurred between the Council and Companies or Organizations in which a Council may have an interest, either as a member or employee, were at ‘arms length’ and in normal course of Council.
Transactions with related parties (i) The Government of Fiji allocated a $5m grant to the Council in 2017 to upgrade the Vodafone Arena.

The other grants allocated by the Government of Fiji to the Council untill 2016 has been fully utilised.

In the current financial year: (ii) The Council received two motor vehicles from the Government of Fiji as donated asset.

(iii) The Council received an electronic scoreboard for the Aquatic Center from the Fiji National Sports Commission.
(iii) The Council received $458,716 as Operating grant and $$4,721,630 as Capital grant for the upgrade of the Vodafone Arena.

(iv) The Ministry of Economy paid the VAT due to the Fiji Revenue & Customs Services of $350,917 for the grant given for the upgrade of the Vodafone Arena.
26 KEY MANAGEMENT PERSONNEL The following are the key management personnel having authority and responsibility for planning, directing and controlling the activities of the Council, directly or indirectly as at the date of this report: Litiana Loabuka - Chief Executive Officer John Pickering - Chief Operations Officer (Resigned 06/08/20) Ashni Sharma - Finance Manager (Promoted to COO 06/08/20) Eleina McDonald - Operations Manager Praneel Ram - Properties Manager Angie Kainamoli - Human Resources Manager Vikash Son - Acting Manager Finance (Promoted to Manager Finance 06/08/20) Alvinesh Chand - Internal Audit Manager (Contract ended July 2019) 27 SIGNIFICANT EVENTS There were no significant changes in the operations of the Council during the financial year.
28 SUBSEQUENT EVENTS Subsequent to year end, the World Health Organization (WHO) declared the Coronovirus (COVID 19) a “Public Health Emergency of International concern”.

Whilst measures and policies have been taken by the national government and nearby trading countries to prevent the spread of the virus, the impact of the virus on amounts and estimates reported or used in the preparation of 2018 financial statements is not expected to be material.
38 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Detailed Income Statement FOR THE YEAR ENDED 31 JULY 2018 REVENUE Hire Income Concession Income Rental Income Signage Income Tattslotto Other Income Government grant Cost of Sales Gross Profit EXPENSES Administrative Expenses Advertising Audit Fees Accounting & Software Support Consultancy Legal Fees Departmental Supplies Printing Ticket/Books Printing Postage Stationery City Rates Insurance Bank Fees/Charges Computer & IT Expenses Computer/Printer Consumables Dues/Subscriptions Freight, Duty & Cartages Total Administrative Expenses Operating Expenses Waste Disposal & Cleaning Utilities Travelling & Accomodation Licensing Communication Repair & Maintenance Motor Vehicle Inventory Shrinkage/Spoilage Total Operating Expenses Notes 31 July 2018 ($) 31 July 2017 ($) FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 FIJI SPORTS COUNCIL Detailed Income Statement (Cont’d) FOR THE YEAR ENDED 31 JULY 2018 Notes 31 July 2018 ($) 31 July 2017 ($) Other Operating Expenses Royalties/Levy Promotions/Giveaways/Gifts Plant/Nursery Signages Hiring & Leasing Staff Training Conferences & Meetings Registration Entertainment Compensation Charges Planning/Designing/Survey Compliance Equipment FSC Board Meeting Exp FSC Board Sevusevu Uniforms&Safety Gears/Supplies Rental Charges Staff Re-treat/Teambuilding Land Lease/Rentals First Aid & Medical Supplies Catering Business House Exp Equipment/Machinery for Hiring
 1,623 2,091 - 12,446 89,176 1,431 10,756 702 8,435 - 18,775 - 596 62,986 3,916 22,539 5,543 1,711 19,602 1,562 35,982 5,476 2,337 10,807 1,946 1,629 12,813 123,999 12,627 9,673 750 6,135 135 33,780 10,142 2,922 72,567 581 10,188 5,415 - 16,122 2,492 13,397 2,754 1,532 Total Other Operating Expenses 307,685 352,406 Personnel Expenses Wages & Salaries Superannuation - Fiji National Provident Fund Acting Allowances FNU Levy Annual Leave Other Leaves Job Evaluation Other Staff Expenses Total Personnel Expenses 1,803,065 185,760 4,017 19,449 80,552 - - 25,487 2,118,330 1,777,333 173,373 9,027 18,504 80,031 3,980 10,249 37,930 2,110,427 Total Expenses 4,263,047 4,345,324 Operating Profit before Depreciation, Interest and Tax 3,315,267 3,488,019 Depreciation Interest 6,924,036 199,620 6,911,069 153,394 Net Operating Loss Before Income Tax (3,808,389) (3,576,444) 40 FIJI SPORTS COUNCILANNUAL REPORT AUGUST 2017 - JULY 2018 Our Strategic Partners The Fiji Sports Council wishes to thank its Corporate Sponsors, leaders in their respective fields, for their continued support.
These strategic partnerships not only promote our sponsors’ brands, their vision and image, but also, by taking naming rights at five of our national sporting arenas, demonstrate their faith in our ability to be the leading provider of premier Sports and Events facilities.

With naming rights to the National Stadium, ANZ Fiji continues its proud commitment to promoting community values.
Thanks to ANZ’s contribution, the National Stadium pitch has been upgraded to an international standard and seating capacity can cater for 15,000 spectators.

For more information on our sponsor, visit: http://www.anz.com As sports is a form of entertainment, taking up naming rights at the National Aquatic Centre is a natural fit for the Damodar Brothers, with their many years of experience entertainment industry.
The Damodar City Aquatic Centre can accommodate up to 500 spectators in the covered seating area.

For more information on our sponsor visit: www.facebook.
com/pages/Damodar/City/centre/204794746212341 The commitment by Vodafone Fiji to sports in Fiji is endorsed by securing naming rights to the renamed Vodafone Arena, which can seat up to 5000 spectators, and is in keeping with our sponsor’s global vision, “To care for the world around you.” For more information on our sponsor, Vodafone −Power to you, visit: www.vodafone.com.fj The FMF Group of companies has lent its trusted name in taking up naming rights to the National Gymnasium, which seats close to 1,600 spectators.
The diverse range of activities – sporting and otherwise – taking place here includes netball, basketball, soccer, weightlifting, concerts and wedding and birthday celebrations.

For more information on our sponsor, visit: www.fmf.com.fj AUGUST 2017 - JULY 2018 ANNUAL REPORT