Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697781008802.pdf (Fiji)
Suva/Headquarters Manohan Building, Corner of Wainivula Road, Nasinu P. O.
Box 1272 Suva Contact Phone: [679] 334-6777 or 5777 (Vodafone, Digicel & Inkk users) E-mail: contact@waf.com.fj Water Authority of Fiji LAUTOKA Manohan Building, Corner of Wainivula Road, Nasinu G P O Box 1272 Phone: [679] 334-6777 or 5777 (Vodafone, Digicel & E-mail: contact@waf.com.fj Nadi Credit Corporation Building, Namaka, Nadi Phone: [679] 334-6777 or 5777 (Vodafone , Digicel & Inkk users) E-mail: contact@waf.com.fj E-mail: contact@waf.com.fj Inkk users) NAUSORI Lot 5 Cunnigham Street, Nausori Town Phone: [679] 334-6777 or 5777 (Vodafone, Digicel & Inkk users) Labasa Labasa Lot 15 Jaduram Street, Phone: [679] 334-6777 or 5777 (Vodafone, Digicel & Inkk users) E-mail: contact@waf.com.fj Water Authority of Fiji 2017 Annual Report Parliamentary Paper No.245 of 2020 1 2017 Annual Report VISION Clean Water and Sanitation for a Better Life MISSION We are committed to optimising water and wastewater services through: Resilience Innovation Safe Working Practices Engaging Stakeholders Capacity Building Being Environmentally Focussed Modernization VALUES Our key values are: Customer Focus Learning and Growth Integrity Passion Accountability and Transparency Adaptability Respect Teamwork 2017 Annual Report 3 Contents Contents Letter to the Minister About the Authority 2017 Highlights Chairman’s Message WAF Board Members Financial Achievements Projects Operations Legal Strategic Business Unit Internal Audit Environment Strategic Planning Corporate Communication Human Resources Partnership Inclusiveness Rural and Maritime Government Initiatives Wastewater Liquid Trade Waste Demand Management Customer Service Milestone Achievements Financials 4 1 2 3 4 6 7 8 10 17 19 20 22 23 24 27 29 30 31 33 34 36 37 42 43 ADB Asian Development Bank NASRUP Nadi and Suva Road Upgrading Project AC Pipes Asbestos Cement Pipes CAPEX Capital Expenditure CDM CRFG FRA FOG GCF GHG GIS Clean Development Mechanism China Railway First Group Fiji Roads Authority Fats, Oil and Grease Green Climate Fund Greenhouse Gas Geographical Information System
 NEC NDP NRW OHS National Employment Center National Development Plan Non-Revenue Water Occupational Health and Safety OPEX Operational Expenditure PPE PPM PRF PSIP Personal Protective Equipment Planned Preventative Maintenance Pressure Reducing Valve Public Sector Investment Program HASAWA Health and Safety at Work Act PWWA Pacific water and Wastewater Association ITEC JICA KECO LMCC LTW India Technical and Economic Cooperation Japan International Cooperation Agency SBU SDG Strategic Business Unit Sustainable Development Goals Korea Environmental Corporation UNEP United Nations Environment Programme Labour Management Consultative Committee WAF Water Authority of Fiji Liquid Trade Waste WWTP Waste Water Treatment Plant Letter to the Minister 1 September 2020 Hon Aiyaz Sayed-Khaiyum Attorney General and Minister for Economy, Civil Service and Communications Attorney General’s Chambers Level 7 Suvavou House 400 Victoria Parade Suva Dear Sir, I hereby submit the Water Authority of Fiji’s Annual Report containing the Audited Financial Statements for the 2017 Financial Year.
We continue to clear the backlog of financial statements, with the 2017–2018, 2018–2019 and 2019– 2020 Financial Statements pending audit in the Auditor General’s Office.

On behalf of the Water Authority of Fiji, we thank the Government for its ongoing support, and look forward to this continuing into the future.
Yours faithfully, Bhavesh Kumar CHAIRMAN 1 2017 Annual Report About the Authority Who We Are Our Functions The Water Authority of Fiji is a Commercial Statutory Authority (CSA) that was formed by the Government of Fiji, under the WAF Promulgation 2007, in order to provide environmentally sound, sustainable, efficient and effective water and wastewater services.
• To harvest, treat and reticulate water supply for our customers, • To comply with standards in relation to the supply and quality of water in our water system, • To collect, transport, treat and discharge waste water, • To establish, operate and maintain systems for the provision of water and sewerage services, • To maintain any State assets transferred in by the to the Authority and vested Government, • To provide technical or expert advice to any other person on matters relating to our functions and powers, • To progressively achieve economic viability in the provision of water supply and sewerage services, • To be environmentally responsible in the performance of all its activities, • To assist in protecting, managing and • To assist formulation conserving water resources, and in and the implementation of national policies or urban and rural land use planning, relating to the use and control of water bodies and resources.
Following the 2009 Government reforms to strengthen the then Water and Sewerage in preparation for the Department (WSD) transition from Government Department to an autonomous organisation, WAF was established with effect from 1st January 2010 as a new CSA, officially taking over all responsibilities, functions and operations previously undertaken by WSD.

We report to the Minister for Public Enterprise and the Minister for Infrastructure and Transport.
Our Responsibility WAF is responsible for providing access to quality drinking water and wastewater services to over 147,000 residential and non-residential metered customers, reaching over 735,000 people nationwide, with an area of operation that covers 18,274 square kilometres with a water and wastewater network of more than 4,200 kilometres of pipes.
2 Water Authority of Fiji 2017 Highlights Water Authority of Fiji launches its new Strategic Plan 2017–2019 Carbon Credits for Greenhouse Gas Reduction – WAF claims $350,000 from ADB by reducing emissions at 22,000 tonnes WAF receives an award at the 2017 Global Water Awards for its Water Champion Programme WAF receives US $31 million grant from the Green Climate Fund, a component towards US 405 million investments from Fijian Government, ADB and EIB to develop the Suva-Nausori Water Supply system, which would result in improved water services for close to 400,000 people.
WAF is the first water utility in the Asia-Pacific region to pilot Aquarating, a utility benchmarking tool.

WAF completes 17 rural projects with installation of Ecological Purification Systems 3 2017 Annual Report Chairman’s Message I present the Water Authority of Fiji Annual Report containing the Audited Financial statements for the year 2017.

(WAF) received $169.6 million for capital expenditure and $78.9 million for operational work.

2017 has been a very busy year for the Authority.


WAF launched its new Strategic Plan 2017– 2019.

It takes a bold approach to the future of the Water Authority of Fiji.

It builds on the knowledge attained over time and present experience, together with the Fijian Government’s goals to pave the way for the future.

The drive towards service excellence in delivering clean water and sanitation for all Fijians is the central guiding theme of this Strategic Plan 2017–2019.
To strive for excellence means not to accept what could be seen as being good enough.

This will require a change in the mind-set of all involved.

The need to keep improving things continually, build and strengthen teamwork, create greater cohesion, practice respect and apply our values in daily operations, and benchmark our performance against relevant international best practices.
Project Delivery Framework The Project Delivery Framework was developed in 2017 and it is the latest version of the Capex Procedures Manual 2015 and Project Manual 2012.

It merges the two documents and incorporates the best project management 4 practice.

The purpose of the manual is to guide staff through the capital expenditure approval, review, funding, and delivery processes.

It aims to assist WAF in maximising the value of its capital investments.
WAF receives an award at the 2017 Global Water Awards On 24 April 2017 at the Palacio de Cibeles, Madrid, Spain, the Global Water Intelligence presented a Distinction Award to the Water Authority of Fiji under the Water Leaders Award category.

WAF received the Global Water Awards for its “Water Champion” programme, which provided both a theoretical approach to learning about water and wastewater services, and a practical exercise where students and corporate bodies witnessed WAF’s operations first-hand.
The programme has become the voice for water conservation in Fiji, while communicating the value of water and wastewater services to a multitude of stakeholders.

Champions who have graduated from the programme includes staff from WAF itself, school students, and even members of other utility organisations such as Telecom Fiji.
reaped rewards Other for WAF’s strong performance included the Authority’s selection by the Asian Development Bank over 500 water utilities in the Asia Pacific region to undertake the Aquarating benchmarking exercise; WAF’s receipt of US $31 million grant from the Green Water Authority of Fiji Climate Fund; and the announcement by Government, ADB and the European Investment Bank that there would be an investment of close to US $405 million to develop the Suva-Nausori Water Supply system, which would result in improved water services for close to 400,000 people.
houses were built or before the debris was cleared.

I would investing which has helped clean, safe, reliable water to all Fijians.

like to thank the Government for infrastructure upgrades, in water the Authority to provide WAF continues to assist its rural population and completed 17 new projects with installation of Ecological Purification Systems.
the TC Winston Of the 533 villages that were devastated during TC Winston, WAF responded to each one and ensured that they had water, even before their Bhavesh Kumar CHAIRMAN 5 2017 Annual Report WAF Board Members Chairman Mr. Bhavesh K. Patel Mr. PL.
Munasinghe Mr. Umarji Musa Mr. Vijay P. Maharaj Mr. Hemant Kumar Mr. Kamal Gounder Mr. Paul Bayly (Ex-officio) Resigned on 17/10/17 6 Water Authority of Fiji Financial Achievements million to improve water distribution systems; $9.34 million to further improve water treatment quality; $6 million for the replacement of water meters; $7.91 million for non-revenue water; $14.17 million for the upgrade of wastewater treatment plants; and $3.72 million to upgrade the wastewater distribution system to ensure that Fijians within urban centres are connected to the wastewater reticulation system.
In addition, Government allocated $19.25 million to the Rural Water Supply Programme in order to provide access to clean water in rural communities, with a target of 85% access by 2021.

$9.97 million is for electrical works at WAF’s water pump and wastewater stations, and $2.5 million will be utilised to continue improvement of catchment and water source areas.
2017 – 2018 Budget Access to clean water is both a fundamental right of every Fijian, as enshrined in the Fijian Constitution, and an essential component of sustainable development.

The Water Authority is responsible for helping achieve of Fiji Government’s vision to give every Fijian household access to clean water and efficient and effective wastewater services.
WAF has made serious progress in becoming a to fully-modernised utility provider due its continuing investment in human capital, adoption of international best practises across its services, procurement of new technology and efforts to raise public awareness on water conservation.

The Government had provided $169.58 million capital investment to carry out major water projects around the country to achieve 24/7 delivery of water to all Fijians and expand Fiji’s sewerage network.
As articulated in the 5-Year and 20-Year National Development Plan, Government had undertaken major investments to cater for the country’s long-term water supply needs.

This includes an investment of $36.17 7 2017 Annual Report Projects Projects Update There were twenty nine projects completed in 2017.

CAPEX Projects The CAPEX budget for the financial year 2016 to 2017, which ran from 1 August 2016 to 31 July 2017 to match the Government’s changed financial year, was $225 million.
The actual capital grant received for the 2017 calendar year was $169.6 million.

Capex Budget - 2017 1 9 , 2 0 0 .

0 0 7 7 .

0 0 4 , 8 1 $ 4 , 1 5 $ 3 0,2 $5,875,0 0 0 .

0 0 $ 7 4 , 9 3 8 , 4 2 3 .

4 4 0 0 .

5 2 8 , 3 9 9 , 8 5 $ $33,184,00 0 .
0 0 Water Wastewater Others Rural Schemes Meter Replacement Revenue Water Free Water Tanks 8 2017 Annual Report 8 Water Authority of Fiji 41km of new pipes laid 113km of pipes rehabilitated • Water Treatment Package Plants Balevuto and Namau • Kaba Peninsula Water Supply System • Fletcher Road AC Replacement • Nadi and Suva Road Upgrade Project (NASRUP) Projects • River Pipeline for Nawamagi Village • Commissioned North Water Projects Muanidevo, Naiblu, Batiri, Dreketi • Kiuva Mains Replacement • Qaraniqio Bridge • Disraeli Mains Upgrading and Replacements • Caqiri and Nasole Footpaths Mains Upgrades • Wailekutu Bridge Minor Rehab Works • Dradramea 100 mm Main Extension and Upgrading • Vunivutu to Coloci 100 mm Main Extension • Wainibokasi Bridge Aerial Extension • Naboro Main Extension Cut–In • Vunidawa Raw Water Main • Mariko Sewer Reticulation • Vuninokonoko #2 100 mm Mains Extension • Vunisea Sports Complex • Veiraisi Mains Extension • Naria Seaside Mains Extension • Osonabukete Settlement Mains Extension • Alivereti Farm Road/ Ram Dutt Feeder Road AC Main Replacement • Regular Water Supply for Arolevu Settlement • Water Main Upgrades at Black Rock Camp • Nakorosule District School to Benefit From Water Project • UNELCO Explores Partnership Opportunities 9 2017 Annual Report Operations Non-Revenue Water (NRW) This unit is responsible for the Water Balance data compilation after each billing cycle, the calculation of non-revenue water percentage for WAF water systems by regions using IWA (International Water Association) standard software, and recommends NRW reduction works program.
Rural water cart accounted for (using default percentage) in Water Balance as water exported from WAF System which impacts the water balance calculation.

10 WAF Partnership with Fukuoka Reduces NRW The final seminar for the First Partnership Project on Unaccounted Water Loss, between WAF and the Fukuoka City Waterworks Bureau, Japan, was held at Tanoa Waterfront Hotel Lautoka in May.

Water Authority of Fiji 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% WAF National Average Annual NRW% Trend % 2 5 % 1 1 5 .
% 5 3 4 .

% 2 6 3 .

% 6 1 3 .

20132013 2014 2015 2016 2017 The programme contributed to the “remarkable achievement” of reducing NRW from 51.9% to 31.6% in three years.

Revenue Water (NRW) and to the Fukuoka City Waterworks Bureau for their contribution as well.
This was officiated by the First Secretary of the Embassy of Japan in Fiji, the Deputy Secretary of the Ministry of Infrastructure and Transport, and Mr Hideaki Soneda, the Executive Director of General Affairs Department of the Fukuoka City Waterworks Bureau.
WAF now has experts in leak detection at a level previously not available in the country, and is extremely grateful to the Japan International Cooperation Agency (JICA) for funding the partnership for the reduction of WAF’s Non- Fifteen WAF staff members and one from the Ministry of Infrastructure and Transport received certificates to acknowledge their participation in the three-year programme; attending on-site training in Japan.

Fukuoka City Waterworks Bureau staff assisted WAF with capacity building.
More than 100 Fukuoka personnel have visited WAF in this regard.

11 2017 Annual Report National Water Quality Laboratory Achievements 2017 The laboratory completed the following: 1.

Quality monitoring of the 55 water treatment schemes on a regular basis from weekly, fortnightly to monthly, depending on the population size the plant serves.
This ensured that all treatment processes were working as required and ensured they met with the required Fiji National Drinking Water Quality Standards on a weekly, fortnightly and monthly basis.

2.

Ensured that the 11 wastewater treatment plants are operating efficiently and discharging quality effluent to the receiving water that adheres to the Environment Management and Regulations Environment Management Act 2005.
Any non-conformances for each treatment plant are reported on a monthly basis for corrective actions.

Kinoya Wastewater Plants were monitored on a weekly basis for quality compliance.

2007 3.

All 45 water catchment and waters sources were monitored on a quarterly basis.This includes the monthly monitoring of Vaturu Dam for chemical, microbiological, oxygen demand, nutrients, metals and physical properties.
The water sources quality data are also reported to the UN Environmental Program the UN indicator for proportion of bodies of water with good ambient water quality.

4.

Analysed Bacteriological quality for drinking water, chemical constituents of health in drinking water, organic significance constituents of health significance in drinking water and physical and esthetical quality as samples were received in the lab on a daily basis.

5.
5.

The National Water Quality Laboratory was involved in the Algae bloom at Nagado Water treatment plant and the team worked on it with the consultants to work out the solution to the algal bloom by testing for algae.

Its presence and samples were sent on a weekly basis to Water Care Laboratory NZ for quantification of the algae.

12 6.

Calibration of all spatial equipment was achieved to ensure proper operation and all instruments used were within the required range of measurement.

7.
7.

External audit of the required bench Implementation techniques, control of cultures and aseptic methods took place.

This allowed the laboratory staff to reduce uncertainties in results and improve the efficiency as exposure was given to an international its aspects laboratory and were easily implemented and followed.

This increased the technical competence of the staff.

8.
8.

The National Water quality Lab also serves over 100 external customers for water and wastewater analysis at a service fee which is an avenue for revenue generation for WAF.

9.

Monitors shore line of big cities (Suva, Lautoka, Nadi) for level of pollution in relation to wastewater effluent level.

10.

Continuous improvement to systems and process for the ISO 17025 accreditation journey.

In-house and overseas training to support the ISO 17025 requirements.
GIS Geographical Information Systems (GIS) is a tool, which associated with computer based environment, is used for mapping and analyzing things that exist and events that happens around us.

It integrates to common database operations such as data analysis using query functions for unique visualisation offered by maps interface.
Primarily for the GIS unit, their main objective is to ensure that WAF is able to know the quantity of Infrastructure Assets on the ground and keep it in record that can be used for all purpose.

Updates of all water reticulation networks and all WAF assets associated with it were completed for all of including Naqarawalu, Somosomo Bucalevu, Naselesele and Mua.
Ongoing capturing of Burst Main, New Connections and Pipe Replacement work in each region ensured that the GIS system is updated Taveuni, Water Authority of Fiji unit to obtain feedback from employees and incorporate important factors in the OHS Policy.

OHS Audit and Site Visitation The OHS team conducted an OHS audit and site visitation at various locations to identify hazards, assess risks and implement control measures to mitigate risks to acceptable levels.
Health Screening Program WAF is fully committed to promoting total excellence in the workplace, with the emphasis in providing a safe system of work and healthy work environment through effective OHS management.

In doing so, WAF conducts health screening in all regions on a 6 month basis.

Health screening is conducted on WAF workers to identify potential disease symptoms that are easier to treat once detected at its early stages.
Certain tasks at WAF are very hazardous, hence it is of utmost importance to constantly carry out random health surveillance of staff.

Staff of WAF undergoing health screening exercise as conducted by the Ministry of Health.

with the latest information on the ground.

Integrated Meter Management (IMM) The IMM unit is responsible for the procurement, distribution and replacement of all meters and accessories.
The unit also keeps track of the meter stock level, the monitoring and maintenance of the meters on the field especially in the case of sophisticated smart meters.
Occupational Health and Safety (OHS) Region Meters Replaced Central Eastern Region Western Region Northern Region Total 2017 4,390 2,810 786 7,986 OHS Awareness and Review of Policy information to The WAF OHS unit conducted awareness at various depots and stations as part of their ongoing training exercise to provide relevant health and safety its staff.
The OHS awareness training provides a basic understanding of the OHS Act and its subsidiary regulation, it also highlights on employers’ duty of care and responsibilities of employees in maintaining their health and safety.

This consultation process will enable the OHS Worksite Inspections 2017 30 North 25 West 49 Central /Eastern 13 2017 Annual Report Mobile Tower Light for Night Operations was engaged to develop and implement an OHSMS at WAF.
In another attempt at promoting total excellence at the workplace WAF purchased six mobile tower lights in 2017 which will be used to carry out work safely and effectively during night operations.

Due to the limited set of light sources, the staff working at night had resorted to using torches and other means of light which posed a detrimental risk to the health and safety of them.
Development and implementation of OHS A consultant (JTA health & safety specialist) lacks a well-coordinated Currently, WAF in all facets of OHS management system its operations.

The system will be developed considering the nature of our operation and other key elements such as contractor management risk areas.
system and working Documentation such as OHS manuals, policies, procedures, risk assessment guidelines, safe work method statements, inspection checklists, and training matrices will be developed and implemented in all SBU’s to have a safer work environment and to comply with relevant legislation and standards.
in high 14 Water Authority of Fiji Statutory Inspection and Certification of WAF Owned Plant and Machineries The OHS unit is committed to ensuring that all WAF owned plants and equipment are inspected and certified by the Ministry of Labour’s field operation team.

The inspection examines the critical component of the plant and equipment and determines the extent of wear, deterioration and malfunction which can lead to catastrophic accidents if not properly maintained.
WAF OHS unit in consultation with relevant team leaders and supervisors work closely with the Ministry of Labour to ensure risks are mitigated and reduced to acceptable levels.

The ministry’s field operation team inspected and certified, inter alia, equipment such as overhead cranes, sling wire ropes, chain blocks: The inspection of these equipment is usually carried out every 6 months to meet the regulatory compliance and also to ensure the safety of our staff.
Accident Details 2017 Total number of cases reported are tabulated below.

Worker Compensation Database - 2017 15 10 5 40 30 20 10 0 Central /East Division West Division North Division Major Moderate Minor Personal Protective Equipment for staff With continuous management support and budget allocation, the OHS unit procured more than thirty types of PPE which was issued to the staff based on the nature and scope of work that is undertaken.
Priority is normally given to field workers as they are engaged in high risk activities in day-to-day operations.

The provision of PPE to WAF employees ensured the fulfilment of commitment as outlined within the WAF OHS Policy.

15 2017 Annual Report Vaccination of Wastewater Staff 2017 Vaccination is usually given to wastewater staff to boost immunity against diseases and viruses and is conducted on a 6 monthly basis for staff who are in direct contact with sewers.
Employees are provided with the Hepatitis A & B injections and Typhoid vaccines to avoid any unwarranted illnesses and diseases caused by direct exposure to wastewater.

The most common bacterial pathogens found in untreated wastewater are Salmonella and Shigella.

Other bacterial micro-organisms include Vibrio, Clostridium, Yersinia, Campylobacter, and Leptospira.
16 Water Authority of Fiji Legal Strategic Business Unit The Legal Unit was formed in 2012 and plays a pivotal role as in house Legal Counsel to advance the needs of Water Authority of Fiji (‘WAF’).
Their duties are as follows: • providing legal and policy advice to WAF, its management and employees; • working collaboratively other departments to communicate key action items for legal and regulatory compliance as required by the Board of Directors (‘Board’); with • handling day to day internal legal matters and carrying out consultations with WAF’s external legal advisors; • overseeing the management and review lawsuits, contracts, filing of of claims, easements, filing of legal documents; and • attending to legal litigation matters against WAF.
Key Achievement for the Legal Unit in 2017 Litigation a.

Successful Prosecution - 2017 .

In 2014 the WAF successfully established the prosecution unit responsible for prosecuting all cases which included charges for destroying, damaging, tampering and wilful interference with WAF assets or otherwise commonly known as illegal connections.

In 2017 WAF instituted a total of 10 cases in the Fiji Courts with the assistance of the Director of Public Prosecution (‘DPP’) Office.
A significant highlight to mention was that all 10 charges initiated was verified by DPP’s office and was successfully prosecuted resulting in a 100% success in prosecution for the year 2017. rate b.

Legal Proceedings instituted against the WAF > WAF defended itself in an illegal connection suit filed by the appellant in the Lautoka High Court (Bal Krishna Naidu v Water Authority of Fiji (HAA # 112 of 2017).
This was an appeal by the appellant against WAF, where the appellant appealed the ruling of the magistrate’s court.

The magistrate’s court had ruled that the accused (appellant in the High Court) was guilty of illegal connection and the High Court subsequently upheld the ruling of the magistrate’s court in favour of WAF.

17 2017 Annual Report residential and commercial property owners within Suva.
The project was completed in 2013, however, there was a delay in the payment of compensation, survey of the pipeline route and the registration of the easement certificate over the lots which have been affected by the sewer projects.
In 2017 the WAF Legal Unit following consultation with the Registrar of Titles (‘ROT’) and the Lands Department commenced the process of regularisation and filing of easements in the Titles Office, whereby WAF registered 20 easement certificates, which were registered on the titles of the properties affected because of the project.

Contract With the Capex Grant of $165,317,442.00 a number of critical projects was initiated in 2017.
A significant number of these projects required engagements of international contracting firms and consultants.

WAF’s procurement and contracting strategy required the adoption of International Contracting Standards i.e.

FIDIC in engaging these strategic partners.

A total of 29 contracts were drafted by the Legal Unit in 2017.

WAF also obtained a ruling in its favour in the case of Labasa Town Council v Water Authority of Fiji (Criminal Action#548 of 2013).
In this case, the Labasa Town Council filed a charge against WAF for causing nuisance under the Public Health Act 1935 when WAF attended to burst main repairs.

This case considered the powers WAF has under section 8 of the Water Authority of Fiji Act 2007 with respect to the repair works without causing nuisance to the public under the Public Health Act 1935. c. Employment Relations Matter .
In 2017, an employment grievance claim was filed against WAF for unfair termination (Maikali Drauna v Water Authority of Fiji (ERT Grievance Action #23 of 2017), whereby the grievor contended that WAF failed to comply with the proper procedure during termination.

The Employment Relations Tribunal ruled in favour of WAF, that is, proper procedure was followed by WAF in terminating the grievor thus there was no unfair termination.

d. Conveyancing and Easement .


As part of the Government initiative, ADB had funded a sewer construction and realignment project in 2013 namely the 5F, 5G and Nabukalou sewer projects.

The construction project involved the laying of sewer pipelines on critical areas in Suva i.e.

Suva City main CBD, Domain, Samabula area.


The route of these pipelines affected interest of both 18 Water Authority of Fiji Internal Audit The internal Audit Department plays a vital role in the operations of the Water Authority of Fiji.

The role of internal audit is to provide independent assurance that the organisation’s risk management, governance and internal control processes are operating effectively.

cash and the water cart operation in regions.


Some of the Audit Reports that were submitted were: • Recruitment Audit • Special Audit – Plant Hire companies Internal Audit Department Achievements for 2017 are as follows: While the following recommendations were acknowledged by the Management: The Internal Audit department handled 68 cases where by 63 of the cases were Investigation and 5 were Audit Reports.
Apart from the above cases, there were frequent spot checks done by the department on stores, cashiers till count, petty • Plant Hire Policy was developed.

• Recruitment team the new procedure to avoid delays in the recruitment process.

to develop 19 2017 Annual Report Environment The Water Authority of Fiji’s (WAF) Environment Management Unit’s (EMU) major objective is to ensure that WAF’s operations are in compliance with the Environment Management Act (EMA) 2005.
The purpose of the EMA 2005 is “for the protection of the natural resource and for the control and management of developments, waste management and pollution control and for the establishment of a national environment council and for related matters”.

The team is responsible for acquiring Waste Disposal Permits for all (55) WAF’s treatment plants from the Ministry of Environment (MoE).
20 This includes preparation of Waste Management Plans, Waste Disposal Returns Forms, Permit Renewals forms and conducting quarterly inspection of all treatment plant facilities.

The team is also involved in the protection of WAF’s catchment areas in order to provide safe drinking water to all.

In addition, conducting environmental monitoring, assessment and reporting of PSIP (in-house/ to ensure outsourced), and sustainable development within WAF’s operations are also undertaken.
The key achievement by EMU rural projects compliance included Water Authority of Fiji Some highlights during 2017 included: • • • the EMA 2005 training with WAF’s technical staff within the three Divisions with the collaboration of WAF’s EMU and Ministry of Environment, issuing of Stop Work Notice to a company that was illegally extracting gravels in Waibau, with the collaboration of the Ministry of Lands and Mineral Resources recycling of plastic bottles that was being piloted in Kinoya Sewerage Treatment plant (KSTP) Depot with the collaboration of EMU and KSTP management.
undertaking 69 Initial Environment Examinations (IEE), 32 Compliance Monitoring, 43 Water and Wastewater Treatment Plant Inspections, 30 Waste Disposal Permit Renewals, 9 Waste Disposal Permit New Applications and 43 Waste Disposal Permit Returns, Trainings and Awareness, Integrated Water Resource Management and 27 Water Quality Hazard Assessment, etc.

This totals to 288 reports being compiled and submitted to the WAF Management by the EMU during 2017.
Some highlights during 2017 included the EMA 2005 trainings with WAF’s technical staff within the three Divisions with the collaboration of WAF’s EMU and Ministry of Environment, issuing of Stop Work Notice to a company that was illegally extracting gravels in Waibau, with the collaboration of Ministry of Lands and Mineral Resources and recycling of plastic bottles that was being piloted in Kinoya Sewerage Treatment plant (KSTP) Depot with the collaboration of EMU and KSTP managements.
21 2017 Annual Report Strategic Planning awareness in school children on where water is sourced from, treated and distributed.

This program also provides an opportunity for students to explore career options prior to undertaking final year of study in the schools.

The program has also been extended to Western and Northern divisions.

The program expansion has also included the corporate sector, social communities and the staff of WAF.
The feedback has been very positive and has provided WAF insights in enhancing the program.

The Water Champion program gained global recognition in being awarded a Distinction in the Water Leaders category in the 2017 Global Water Award in Madrid, Spain.

Strategic Planning Unit functions as a coordinating body, developing and implementing strategies that meet the objectives of the organisation.
SPU is mandated to Construction and Formulation of Key Strategic Documents, Innovation, Identifying Opportunities, Forecasting and Planning, Analysis and Information Presentation to Management for Decision Making and New Business Development.

Listed below are some key deliverables of the unit for the first six months of 2017.
• WAF Annual Conference 2017 and Water Authority of Fiji Awards Night • Workforce Planning and Structure Re- view • Submission of Pacific Water & Wastewa- ter Association (PWWA) Benchmarking Report • Public Sector Investment Program (PSIP) 2017 Submission • Corporate Documents Water Champions Program As part of the WAF’s continuous effort in promoting water conservation awareness in communities, homes and schools, WAF runs the Water Champions programs during the school holiday breaks with school students.
Since the inception of the program in 2014, there has been a total of over 80 students that have gone through the program.
The objective of the program is to create 22 Water Authority of Fiji Corporate Communication • Water Tank Distribution at Latchman Feeder Road • Water Tank Distribution at Qiolevu Road • Fiji Corrections Service visit to WAF • Nasivikoso Rural Water Commissioning • Liquid Trade Waste Policy & Fabrication & Installation Of Grease Traps And Underground Interceptors Handbook Launch • Public Consultations at Nasinu Secondary School and Lami Police Post – Bure.
The Corporate Communications Team manages the communication space between WAF, stakeholders and the general public.
The year 2017 was filled with activities highlighted below: • Fiji National Water Forum • WAF Conference • WAF Annual Awards Night • World Water Day in Levuka • USP Entrepreneurial and Expo Fair 2017 • CEO’s site visits • Code of Practice signing – MOA between utilities • MOU signing between WAF and the Fiji National University (FNU) • MOU signing between WAF and Vodafone & Digicel for SMS • Rural Water Commissioning 23 2017 Annual Report Human Resources WAF signs MOU with the Fiji National University The Water Authority of Fiji signed the Memorandum of Understanding with Fiji National University on 24th March 2017 to formalise the partnership arrangement in providing industrial attachment to the engineering students of the University to acquire work experience which is a requirement as part of the program.
Employee Relations The Employee Relations Section is a newly established Sub-unit within the Human Resources SBU.

One of the achievements was the establishment of the Labour Management Co–operation Committee to meet, discuss and find ways to solve any issue that arises in the workplace.

The membership consists of workers and management representatives.
The Memorandum of Understanding is specifically for industrial attachment in the areas of Civil Engineering, Electrical and Electronics Engineering and Mechanical Engineering.

Apart from these areas the students are also accepted in the other areas as well that includes, human resources, finance, project management, national water quality lab, legal etc.
The MOU gives an opportunity for the Authority to help design the engineering curriculum with an industry advisory committee already set up to ensure graduates are fit for employment.

Labour Management Consultation Committee (LMCC) The Water Authority of Fiji strengthens and promotes good employee relations with staff and management through the Labour Management Consultative Committee.
The LMCC, including the management and employee representatives, met four times to discuss issues raised by employees and provided its recommendations to the Chief Executive Officer.

The LMCC was established on 19th January 24 Water Authority of Fiji 2016, and so far have amicably resolved thirty eight (38) cases.

Training Various training and workshops were attended by staff during the year.
19 WAF staff attended Training of Trainers Module 2 (TOT) at FNU, Institute of the finance staff attended Fiji Accountants seminar in Warwick, and 10 WAF staff attended lands survey drafting training at FNU.

Occupational Health Safety training was also carried out with the St John Council of Fiji.
SDG 6 - UN Regional Technical Workshop The United Nations Environment Programme (UNEP) selected WAF to host the region’s first-ever technical training on monitoring and reporting on its Sustainable Development Goal 6, or SDG6, on water and sanitation.

Fiji was amongst only 10 countries around the world and was also the first in the South Pacific to be chosen by UNEP to carry out this technical training.
The two-day hands-on training was conducted by global freshwater ecosystems expert, Dr Chris Dickens from the South Africa-based International Water Management Institute (IWMI).

The workshop reflected UNEP’s efforts to help countries like Fiji with its reporting efforts in achieving its SDG6, under which are two additional issues, such as ambient water quality and freshwater ecosystems.
The technical training covered how these issues can be implemented within Fiji with special emphasis on our responsibilities and our plan of action to gather the necessary data in order to submit our SDG report back to the UN.

Pathway for Graduate Engineers The workshop was attended by at least 40 senior water officials, as well as policy makers and relevant stakeholders, with discussions on water quality and hydrological monitoring, wetland inventory and setting targets for water variables.
Traffic management training Recognising the need to improve its traffic management expertise, 34 WAF operational staff from the Central-Eastern and Northern Divisions were trained in June on the basics of temporary traffic setups, by Fulton Hogan Hiways (FHH) specialist trainer, Mr Eddie Mee.

This assisted WAF to have appropriate temporary traffic management plans and adequate resources to better manage traffic on roads and, subsequently, meet Fiji Roads Authority standards and requirements.
Operational staff were trained to carry out repairs, maintenance and new installations on the roadside without risk to workers, pedestrians and motorists.

Trainee/Engineer Program WAF has also introduced Graduate Programs as Engineers are scarce and are in high demand and WAF is afraid of losing them to other organisations or them leaving for greener pastures.

These Engineers hold key positions in WAF and carry out the core functions of the organisation.
To retain these skilful Engineers, WAF has introduced the Graduate & Career Progression Program for Engineers where fresh graduates targeted from the University are recruited and trained in different fields of the organisations.

A total of 57 recruits have gone through each stage from Graduate Trainee to Graduate Engineer and then to various Engineer pathways.
Trainee Engineer Graduate Engineer Engineer Senior Engineer Principal Engineer 25 2017 Annual Report Status of Graduate Program - 2017 Current Graduate Trainee Position Location Graduate Trainee Central Eastern Current Graduate Engineers Position Location Graduate Engineer Central Eastern Western Total No 5 No 27 3 30 26 Water Authority of Fiji Partnership the New Zealand WAF’s partnership with Ministry of Foreign Affairs and Trade (MFAT) has seen 193 employees benefiting from funding of $832,602 for training in Water and Wastewater and Reticulation, Advanced Safety, Graduate Engineer Principles and Trends, Reticulation Water and Wastewater Confined Space, and Water and Wastewater Plant Operator Training.
Excavation Awareness The twinning arrangement with Hunter Water, Australia has resulted in knowledge transfer in SCADA and System Training, Wastewater Network Modelling, and Water and Wastewater Design, whereas twinning with Sydney Water, Australia has seen the development of the Implementation of Liquid Trade Waste Policy in Fiji.
The twinning arrangement with Water Care Services, New Zealand has provided knowledge transfer in non-revenue water, SCADA, Asset Management, Enterprise Risk Management, Liquid Trade Waste and Wastewater Modelling.

fourth staff member, WAF National Water Quality Laboratory Team Leader, Mr Mosese Nariva, is enrolled in the Masters of Science programme at UNESCO-IHE.
The Japan International Cooperation Agency (JICA) contributed to WAF’s training schedule, with employees attending the 5th Asia Smart City Conference and participating in programmes such as the ongoing Counterpart Training by Fukuoka City Waterworks Bureau in Reducing Unaccounted Water; the Feasibility Survey on Dirty Water Treatment System; Management of Water Resources and Water Supply Services, and the Operation and Maintenance of Sewerage System.
During 2017, WAF continued to encourage employees to attain recognised skills certification with the FNU Trade Test Programmes, continued to participate in the National Employment Centre (NEC) Attachment Programme and signed a Memorandum of Understanding with FNU on Industrial Attachment.
India to Five WAF employees travelled to participate in Indian Technical and Economic Cooperation (ITEC) Programme courses, namely: International Training on Laboratory Quality Management System; Quality System Certificate ISO 9001 Sigma Six Practice for Organisations/ Laboratories Testing and Calibration, and International Training Programme on Human Resources Planning and Development.
Three staff members attended the world’s largest international graduate water education facility, UNESCO–IHE, in Delft, Netherlands.

A WAF’s Climate Change Adaptation Journey Climate Change has posed significant risk and opportunities for the Water Authority of Fiji.

WAF has a substantial number of assets located in close proximity to the coastline and major rivers.
In previous years, flooding of these assets has been a common occurrence, especially wastewater assets, such as wastewater treatment plants, pump stations and manholes.

27 2017 Annual Report This caused wastewater overflow into the local flora and fauna and posed a health hazard for the surrounding communities.

Over the last decade, Fiji has been experiencing some major climatic events that have either disrupted provision of service or completely damaged water and wastewater assets.
The cost of a quick fix and permanent solution ran into the millions.

To date, the Water Authority of Fiji’s response to managing risks has been mainly shaped by the: Climate Change Adaptation sponsored by the Asian Development Bank (ADB) through its Water Operators Partnership programme.

The training was facilitated by Sydney Water and Climate Risk and was a 3-week programme over 12 months.
The first Master Class Training was carried out in Sydney Australia in February, 2017 while second Master Class Training was held in Fiji in June, 2017 and the final Master Class Training in October, 2017.

1.

Water Authority of Fiji's Strategic Plan (2014 – 2016, 2017 – 2019) The Master Class training programme’s main objectives are: 2.

Corporate Plan (2014, 2015, 2016, 2017) 3.

Capital Procedures Manual (Revised to Project Delivery Framework 2017) 4.

Water Authority of Fiji’s 20-Year Masterplan.
The Water Authority of Fiji optimised on the opportunity of a Master Class Training for • Capacity Building in Climate Change Adaptation for Water Utilities • Formulation of Utility Climate Risk Register • Compilation of a Vulnerability Assessment Report based on the Climate Risk Register 28 Water Authority of Fiji Inclusiveness Strides in Gender Inclusiveness 2017 saw several strides made in WAF’s efforts to be gender inclusive, making strong headway and meeting milestones towards that goal.
WAF Best Woman Professional To honour and recognise the role women employees play at WAF, the Authority introduced its first-ever Best Woman Water Professional of the Year Award at the 2016 Staff Excellence Awards event held in January 2017.

The first recipient of this Award was Mrs Nanise Tuwai, WAF Team Leader, Water Network Modelling, presented by the Chief Guest, Late Honourable Madam Speaker of the House, Dr Jiko Luveni, a “role model” for women in Fiji and the Pacific.
With a workforce of only 12% women, WAF is actively encouraging women to take up careers at WAF.

The Authority also endorses strong advocacy for gender equality through recruitment, promotion, training and policy.

Rural and Mariti 29 2017 Annual Report Rural and Maritime The Rural Water Projects programme continued to prove effective when each registered village received, for most, their first-ever reliable water source.
This, with the enormous amount of work accomplished under the CAPEX projects, proved our ability to meet challenges head on and succeed.

request projects, benefiting 13,776 people.

This was the largest number of projects carried out by the unit in years.

This number was greatly divided by scope of works namely; construction of new water schemes and upgrading works.

There were 57 new scheme projects and 119 upgrading projects.
PSIP 2017/2018 saw Rural units undertaking 176 water projects and 2 urgent ministerial Rural Projects 2016/2017 Population Benefit Northern Western Eastern Central 1 4 5 19 12 10 0 2 4 6 8 10 12 14 16 18 20 WIP Completed 1122 2 0 1 6 3 3 2 6 4 03 4 Central Western Eastern Northern 30 Water Authority of Fiji Government Initiatives Free Initiatives the 2017 budget, Under the government continued funding on three free initiatives, Free Water Allowance for households with incomes under $30,000, Rainwater Harvesting and Free Water tanks for intermittent supply areas.
Free Water Allowances Customer Awareness programs were carried out in respective regions to promote free water allowance to those customers who meet the criteria to qualify for the allowance.

Under this scheme, customers are provided with 91,250 litres of water free annually.

Customers that exceed this amount will have to pay for their extra usage.
Region Central Western Northern Total Approved Population Impact Annual Value of Water 10,049 12,400 3,358 25,807 50,245 62,000 16,790 $141,449.72 $174,542.40 $47,267.21 129,035 $363,259.33 31 2017 Annual Report Rainwater Harvesting Government through the Water Authority of Fiji’s Rainwater Harvesting Scheme distributed 4, 373 x 5,000 litre tanks throughout rural areas in Fiji.
Region Central Western Northern Total Free Water Tanks Distributed Population Impact 1,686 1,933 754 4,373 8,430 9,665 3,770 21,865 Free water Tank distribution is mostly distributed to rural and intermittent supply areas.

Key requirements for the household applying is to build a water tank base and have roof guttering in place to meet the criteria for approval.
Region Central Western Northern Total Distributed Population Impact 114 1 0 115 570 5 0 575 32 Water Authority of Fiji Wastewater The Wastewater Management Unit was recently established to allow the unit to provide an effective and efficient wastewater collection and treatment process.

The unit is responsible for the operations and treatment of domestic and industrial wastewater ensuring that standards are met before discharging.
This is to ensure: • The efficient operation of the existing wastewater collection and treatment system • The ongoing maintenance program for the Wastewater system • The upgrading works as per the recommendation of the operation team • The monitoring of the level of infiltration into the Wastewater system • The extension of and wastewater treatment facilities as per the recommendation of the Master Plan Studies coverage Desludging and Odour Control (Kinoya Wastewater Treatment Plant) treatment With 11 operating wastewater plants in Fiji, WAF is committed to providing efficient and effective wastewater services to the people of Fiji in accordance with World Health Organization (WHO) guidelines, including installing and maintaining wastewater collection and treatment facilities.
WAF’s anaerobic ponds and sludge lagoons in some of these treatment plants have, over the years, accumulated excessive amounts of sludge, which has led to reduced treatment efficiency and capacity, and increased level of odours emanating from the plant.

Kinoya WWTP desludging was completed in 2017 which has improved the plant efficiency levels, capacity and reduced odour levels.

Desludging of other wastewater treatment plants will also be carried out in the next phase of plant improvements.
The unit coordinates closely with the Planning, Design and Construction SBU with the extension of coverage that is conducted yearly for WAF.

33 2017 Annual Report Liquid Trade Waste Liquid Trade Waste (LTW) teams are based in all divisions and their key role is to sample the businesses that discharge liquid trade waste into the WAF Wastewater system.
Moreover, some other key roles are to disseminate results to businesses and explain on their performance on wastewater discharge, assist businesses in suggesting pre-treatment, and collecting information on businesses that discharge trade waste and to get them connected to WW lines if they are within 30 meters of the WW boundary.
• Monitoring of wastewater pump stations • Creating awareness and education on waste management and water conservation • All Trade Waste staff trained by Sydney Water under the twinning program • LTW policy got approved on 15th February 2017 • Handbook on Fabrication and Installation of Grease Trap and Grease Interceptors was written through various consultation processes launched on 27th June 2017 • Issued 61 Provisional Permits for LTW has been given to the businesses • Created awareness and education through workshops and face to face discussions with the stakeholders • 3 staff were trained on natural resource management and climate change from India under ITEC scholarship for short term training • Procurement of sufficient awareness materials and promotional items • Procurement of sampling resources • Production of documentary CD on water conservation and production of documentary CD on waste management is in progress • Built a strong stakeholder relationship and gained a lot of support for the trade waste program.
This is a continuous process and 4 inspection chambers have been installed for 4 different types of businesses (FMF, Viti Foods Limited, Fiji Dairy Limited, Paradise Beverages) and the installation of inspection chambers for 4 more businesses are in progress Liquid Trade Waste Achievements The Water Authority of Fiji implemented the Liquid Trade Waste programme in March 2013 with one team leader, three technical officers, five service technicians and two trade assistants for each region, positioned in the National Office.
The Liquid Trade Waste Unit was established to monitor and regulate the wastewater discharge industrial businesses from commercial and that are connected to WAF’s wastewater infrastructure and was officially inaugurated in 2014.

Technicians congregated and compiled data and created awareness by conducting on- ground business verification, LTW sampling, 34 Water Authority of Fiji tanker sampling, and stakeholder and in-house presentations.
The Liquid Trade Waste policy was approved by Cabinet on 15th February, 2017 and, on 27th June, 2017 two handbooks were launched; 1.

Fabrication and Installation of Grease Underground Grease and Traps Interceptors 2.

Liquid Trade Policy 35 2017 Annual Report Demand Management between WAF and consumers.

Fiji’s low tariff rates contribute to the lack of conscious water saving.

The average water bill per household is around $25 for three months.
If you equate that to a daily basis, each family only needs five cents to pay their bill.

It would be a more manageable cost for consumers; however, people are wasting this resource and the DM Team wants to address this.

A key challenge is instilling a behavioural change.

The Team has begun water audits on residential customers to examine consumption habits.

Here in Fiji, we are very aware that climate change is real.

If we are to protect water for future generations, then we must act now.
Focused primarily on the WAF’s domestic customers who comprise 92 per cent of the total, the Demand Management Team (DMT) was created this year to promote the importance of water conservation.

Team members comprise representatives from WAF’s various departments.

One of the DMT’s key strategic objectives for the next three years is to reduce the per capita use of water per day from 220 litres to 180 litres.

Globally, families with an average of five individuals per household survive on 220 litres per day.
Comparatively, in Fiji, one person uses 220 litres.

There is a lot of wastage.

The responsible consumption of water is a collaborative effort 36 Water Authority of Fiji Customer Service The Water Authority’s customer service team interacts with customers of the organisation to provide them with information to address inquiries regarding services provided by the organisation.

In addition, they deal with and help resolve any customer complaints.
There are three major complaint categories, as follows: • Billing Complaint • Production Complaint • Project Metering Complaint The table below shows the regions and the total complaints received and closed within the timeline.

Total Complaints 2017 Region Central/Eastern Western Northern Unstructured Total Complaints Received 2017 Total 25,775 18,512 5,666 46,661 96,614 Call Centre Call Centre Service Level The target for Call Centre service level is 80% and all calls to be answered within 20 seconds.
WAF’s national call centre is a one stop shop and operates 24 hours, 7 days a week, to respond to queries and complaints.

There are 14 trained customer care officers rostered over a 24-hour period shift who are able to access the customers billing history online to answer account queries.

They liaise closely with the technical staff so that accurate information can be given to customers regarding water cuts or shortages in their area.
37 2017 Annual Report WAF Call Centre Performance 2017 40000 35000 30000 25000 20000 15000 10000 5000 0 94% 93% 92% 91% 90% 89% 88% 87% 86% 85% January February March April May June July August September October November December Call Volume Abandoned Calls Efficiency % Contact Emails - Call Centre One of the responsibilities for the call centre team is to look after contact emails.

That is another platform where our customers enquire about WAF services.
All the emails are acknowledged and feedback is given within 24 hours.

Contact Emails 2017 1664 1470 1539 966 996 1,177 1,047 902 929 929 2000 1600 1200 800 400 0 731 212 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Customer Care Centres WAF has 11 customer care centres Fiji wide.

The major customer care centres are National office, Labasa office, Lautoka office, Namaka office and Nausori office.
Currently WAF has installed an Electronic Qmatic system in some of their customer care centres to monitor the service level target in comparison with the serving time.

The grade of service for serving customers in the frontline is 80%.

This means that the total number of walk-in customers must be served within 15 minutes of waiting time.

It measures the efficiency of the service and also reduces the customer waiting time.
38 Water Authority of Fiji WAF Customer Care unit is in a process of installing Qmatic systems in other centres as well in the next quarter.

Challenges - Way to Move Forward Strategy 1.

Qmatic National office Qmatic national office tower to be changed in the next quarter.

2.

Timelines on service requests are not met, especially for new connections Monitor weekly the pending new connections that are more than 15 days old and regularly follow up with the DMA team.

3.

Gentrack Training 4.


Community Education and Awareness To be thoroughly conducted throughout the regions and to ensure that the data entry is 100% accurate, especially when updating customer information “All regions take a lead role in the community engagement and Government roadshows.

Queries and application forms received from customers should be processed with feedback being provided to customers.

This platform is the voice of the customer.
Customer Care Connections – 2017 Meter Connections - Water as at 31.12.2017 Account Group Residential - Water Commercial - Water Institutional - Water Central 70,589 4,687 1,369 West 49,315 3,662 568 North 12,484 1,046 408 Total 132,388 9,395 2,345 Total 76,645 53,545 13,938 144,128 Meter Connections - Waste Water as at 31.12.2017 Account Group Central Residential Waste Water Commercial Waster Water Institutional Waste Water 13,945 2,056 322 West 9,969 2,093 133 North 1,224 425 53 Total 25,138 4,574 508 Total 16,323 12,195 1,702 30,220 39 2017 Annual Report Customer Service 3-Day Billing Process Due to delayed processes in the Gentrack billing system, a 3-day billing process programme was introduced in customer service whereby a route would be read on the first day, the process conducted on the second day, and a bill sent through Post Fiji on the third day.
This process adoption went very smoothly, improving billing time for customers.

On-Time Disconnections A change in the disconnection programme was introduced, whereby readers only read from the 2nd of the month to 10 consecutive days; thereafter, all readers focus on disconnection only.

The new process was a positive change and improved revenue collection from $3m to $4m per month.

myBill Info Card The Water Authority of Fiji launched its myBill Info Card on July 25th.
The card, which is free of charge, enables WAF customers to easily access account details with just one scan of the card at any authorised agent, such as Morris Hedstrom (MH), Post Fiji Limited or at any WAF cashier located at any Customer Service Centre outlet nationwide.

The card was designed in order to resolve the issue of missing water bills and to reduce the inconvenience of being disconnected.

This was in direct response to the customer complaints.
Customers may now make instant payments through internet banking or through Vodafone M-PAISA or Digicel Mobile Money.

The card compliments WAF’s SMS (Short Message Service) billing service that was launched on April 4th.

A Memorandum of Understanding was signed between WAF and authorising agents, MH and Post Fiji in July.

By mid-October, more than 500 cards were issued, with positive feedback received from their users.
By the end of October, WAF Customer Services recorded approximately 5,800 under the registration process, with 3,100 on e-mail billing and another 2,700 on Short Message Service (SMS) billing services.

Community Service The Customer Care and Call Centre and LTW teams took the time to pick up rubbish and strategically place 6 rubbish bins in Natadradave and three other bins in Delakado Village during an informal customer service awareness programme.
WAF also participated in Fiji Maritime – Customer Awareness, whereby free water allowance forms were distributed, along with arrears waiver forms, and rainwater harvesting and new connection queries were fielded.

Customer Service Forum Inaugural Customer Forum The Water Authority of Fiji also held its first-ever ‘Customer Forum’.

This was an opportunity to formally engage with customers, and is expected to be repeated on a regular basis.
WAF CEO said that the main aim of the forum was to foster trust, value and understanding for WAF’s customers, providing the opportunity for discussions with the Authority’s commercial and domestic customers, as well as with representatives of institutions.

The forum was designed to transmit information and create awareness in a timely, cost effective in terms of water and organised manner, conservation, waste management, and WAF services as a whole.
Business Customer Forum Liquid Trade Waste conducted consultations on the Fabrication and Installation handbook with all town councils in the region and customer service business forums for Central, Western and Northern Divisions, where WAF updated its business customers on the WAF 20-year master plan, current issues, new projects and customer forum charter.
40 Water Authority of Fiji Fiji National Water Forum The first Fiji National Water Forum was held at the Novotel Convention Centre on 25th January 2017.

The objectives of the forum were to: • promote knowledge sharing on national and global water challenges and solutions • work towards meeting Sustainable Development Goal #6 (Ensure availability and sustainable management of water and sanitation for all) • enhance governance.
sector coordination and The Minister for Local Government, Housing and Environment, Mr Parveen Kumar, was the chief guest and, in his statement, commended the efforts by WAF board and management on organising the forum.

Mr Kumar added that the forum would allow stakeholders in the water sector to discuss issues at the national level.

41 2017 Annual Report Milestone Achievements Gas Flare Project technology Kinoya Sewage Treatment Plant adopted the “Clean Development Mechanism” (CDM).
This involves capturing and destroying methane emissions generated from titled decomposing organic sludge at the wastewater facility.

Methane is a greenhouse gas (GHG) and has 25 times more global warming potential than carbon dioxide (CO2).
42 Water Authority of Fiji Water Authority of Fiji Financial Statements For the year ended 31 December 2017 1 2017 Annual Report Water Authority of Fiji Contents Directors’ Report Statement by Directors Independent Auditors Report Statement of Comprehensive Income Statement of Changes in Equity Statement of Financial Position Statement of Cash Flows Notes to and Forming Part of the 45-47 48 49-51 52 53 54 55 Financial Statements 56-78 Water Authority of Fiji Directors’ Report In accordance with a resolution of the board of directors, the directors herewith submit the statement of financial position of Water Authority of Fiji (the “Authority”) as at 31 December 2017 and the related statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date.
The Water Authority of Fiji was established 1 January 2010 as a commercial statutory authority in accordance with the Water Authority of Fiji Promulgation of 2007.
Directors The names of directors in office at the date of this report and at any time during the financial year and up until the date the financial statements were authorised for issue are as follows: Board Members Appointed Resigned Mr Bhavesh K Patel (Chairman) Mr P.L Munasinghe Mr Umarji Musa Mr Vijay P Maharaj Mr Hemant Kumar Mr Kamal Gounder 01/03/2018 01/03/2018 28/02/2018 01/03/2018 24/04/2018 13/10/2016 Current Current Current Current Current Current Mr Paul Bayly (Ex-officio) 13/10/2016 17/10/2017 State of affairs In the opinion of the directors, the accompanying statements of financial position give a true and fair view of the state of affairs of the Authority as at 31 December 2017 and the accompanying statement of comprehensive income, statement of changes in equity and statement of cash flows give a true and fair view of the results, changes in equity and cash flows of the Authority for the year then ended.
Trading results The net loss for the year amounted to $61,773,206 (2016: $58,749,247).

Dividends The directors recommend that no dividends be declared or proposed for the year.

Principal activity The principal activity of the Authority during the course of the financial year was to harvest, treat and reticulate water for supply to its customers and to establish, operate and maintain systems for the provision of water and waste water services.
45 2017 Annual Report Water Authority of Fiji Directors’ Report - Continued Current assets The directors took reasonable steps before the Authority’s financial statements were prepared to ascertain that the current assets of the Authority were shown in the accounting records at a value equal to or below the value that would be expected to be realised in the ordinary course of business.
Current assets continued At the date of this report, the directors are not aware of any circumstances which would render the values attributable to the current assets in the financial statements to be misleading.

Non-current assets Upon establishment of the Authority, under the Water Authority of Fiji Promulgation 2007 (“the Promulgation”), Property, plant and equipment were vested in the Authority under the Promulgation amounting to $1,888,909,608.
The valuation of these Property, plant and equipment was carried out in 2006 and this value became the ‘deemed cost’ to the Authority as at 1 January 2010.

The Authority has not subsequently carried out an independent valuation of the Property, plant and equipment as it is the Directors view that the costs associated with such an exercise would outweigh the benefits to be achieved.

Hence in the opinion of the Directors, the deemed cost of Property, plant and equipment is considered an appropriate measure.
Prior Year Adjustment The Directors’ of the Authority have made adjustments & re-instatement to the Financial Statement to derecognise the recording of water and wastewater revenue on the face of the financial statements.

The correction has resulted in restating accumulated losses, contributed equity, trade and other receivables of prior year accounts.

In the current year, the revenue relating to the water and waste water revenue has not been recorded in the statement of comprehensive income.
Further information on the correction is set out in note 25(1).” Other Receivables The directors took reasonable steps before the Authority’s financial statements were made out to ascertain that all receivable was recorded and adequate allowance was made for impairment losses.

At the date of this report, the directors are not aware of any circumstances which would render the above assessment inadequate to any substantial extent.
46 Water Authority of Fiji Water Authority of Fiji Directors’ Report - Continued Going Concern The financial statement of the Authority 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 Authority has adequate funds to meet its liabilities as and when they fall due in the next 12 months.
Related party transactions All related party transactions have been adequately recorded in the financial statements.

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”.

The impact of COVID-19 outbreak on public health and the economy in Fiji and globally is expected to affect the overall operation of the Authority including liquidity and cash flows for subsequent years.
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 2017 financial statements is not expected to be material.
Other circumstances The results of the Authority’s operations during the financial year have not in the opinion of the directors been substantially affected by any item, transaction or event of a material and unusual nature other than those disclosed in the financial statements.
Directors’ interests No Director of the Authority has, since the end of the financial year, received or become entitled to receive a benefit (other than a benefit included in the total amount of emoluments received or due and receivable by directors shown in the Authority’s financial statements) by reason of a contract made with the Authority or a related corporation with the director or with a firm of which he or she is a member, or in a Authority in which he/she has a substantial financial interest.
Dated at this day of 2021.

Signed in accordance with a resolution of the Directors.
Director Director 47 2017 Annual Report Water Authority of Fiji Statement by Directors In the opinion of the Directors of Water Authority of Fiji: a. the accompanying statement of comprehensive income of the Authority is drawn up so as to give a true and fair view of the results of the Authority for the year ended 31 December 2017; b. the accompanying statement of changes in equity of the Authority is drawn up so as to give a true and fair view of the changes in equity of the Authority for the year ended 31 December 2017; c. the accompanying statement of financial position of the Authority is drawn up so as to give a true and fair view of the state of affairs of the Authority as at 31 December 2017; d. the accompanying statement of cash flows of the Authority is drawn up so as to give a true and fair view of the cash flows of the Authority for the year ended 31 December 2017; e. at the date of this statement there are reasonable grounds to believe the Authority will be able to pay its debts as and when they fall due; and f. all related party transactions have been adequately recorded in the books of the Authority.
Dated at this day of 2021.

Signed in accordance with a resolution of the Directors.
Director Director 48 Water Authority of Fiji Water Authority of Fiji Independent Auditors Report For the year ended 31 December 2017 For the year ended 31 December 2017 49 2017 Annual Report Water Authority of Fiji Independent Auditors Report For the year ended 31 December 2017 For the year ended 31 December 2017 50 Water Authority of Fiji Water Authority of Fiji Independent Auditors Report For the year ended 31 December 2017 51 2017 Annual Report Water Authority of Fiji Statement of Comprehensive Income For the year ended 31 December 2017 Notes 2017 2016 (Restated*) $ $ 78,899,685 72,071,657 48,747,566 49,326,460 127,647,251 121,398,117 (33,950,443) (26,026,267) (98,732,047) (94,936,223) (5,035,239) 435,627 5 6 8 7 Revenue Other income Total Revenue Personnel expenses Operating expenses Profit from operations before depreciation, amor- tization and finance income Depreciation & amortization 13 & 14 (56,892,377) (59,288,328) Finance income Loss for the period 9 154,410 103,454 (61,773,206) (58,749,247) Other comprehensive income for the year - - Total comprehensive (loss) for the year (61,773,206) (58,749,247) * Refer note 25 for details The accompanying notes form an integral part of the statement of comprehensive income.
52 Water Authority of Fiji Water Authority of Fiji Statement of Changes in Equity For the year ended 31 December 2017 Note Contributed equity Accumulated losses Total (Restated) (Restated) $ $ $ Balance at 1 January 2016, as previously reported Correction Adjustment - Revenue Recognition 25 25 1,747,699,848 (232,852,610) 1,514,847,238 661,493 (10,228,693) (9,567,200) Restated balance at 1 January 2016 1,748,361,341 (243,081,303) 1,505,280,038 Loss for the year - (58,749,247) (58,749,247) Correction Adjustment - Revenue Recognition Transfer of water and sewerage bills collected to Government of Fiji Consolidated Fund Account (1,909,063) 3,448 (1,905,615) - Restated balance at 31 December 2016 1,746,452,278 (301,827,102) 1,444,625,176 Loss for the year - (61,773,206) (61,773,206) Transfer of water and sewerage bills collected to Government of Fiji Consolidated Fund Account (11,463) - (11,463) Balance at 31 December 2017 27 1,746,440,815 (363,600,308) 1,382,840,507 The accompanying notes form an integral part of the statement of changes in equity.
53 2017 Annual Report Water Authority of Fiji Statement of Financial Position For the year ended 31 December 2017 Non-current assets Property, plant and equipment Intangible asset Total non-current assets Current assets Cash and cash equivalents Trade and other receivables Inventories Held-to-maturity investments Other assets and prepayments Total current assets Total assets Equity Contributed equity Accumulated losses Total equity Current liabilities Obligations under finance lease Trade and other payables Provision for employee entitlements Deferred revenue - capital grant ADB funded grant Total current liabilities Non-current liabilities Deferred revenue – capex grant ADB funded grant Total non-current liabilities Total liabilities Total equity and liabilities Note 2017 2016 (Restated) $ $ (363,600,308) (301,827,102) 1,382,840,507 1,444,625,176 - 91,458 28,938,966 18,820,909 405,078 775,140 43,891,010 47,512,310 3,807,243 1,613,149 77,042,297 68,812,966 365,701,621 239,025,086 63,419,376 66,785,663 429,120,997 305,810,749 506,163,294 374,623,715 1,889,003,800 1,819,248,891 Signed for and on behalf of the Board of Directors __________________________ ________________________ Director Director * Refer note 25 for details The accompanying notes form an integral part of the statement of comprehensive income.
54 Water Authority of Fiji Water Authority of Fiji Statement of Cash Flows For the year ended 31 December 2017 2017 Note $ 2016 $ Operating activities Receipts of Government Revenue 45,673,267 36,753,022 Receipt from Government Grant & Other Income 78,899,685 72,071,657 Payment to suppliers and employees (140,218,285) (92,628,548) Payment to Government – Consolidated Fund Account (45,673,267) (36,753,022) Net cash flows used in operating activities (61,318,600) (20,556,891) Investing activities Receipt from Government – capital grant 169,576,635 104,576,413 Receipt from rural entities – rural projects - 3,738 Payments for property, plant and equipment (79,983,603) (84,606,430) Net cash flows from investing activities 89,593,032 19,973,721 Financing activities Repayment of finance lease (91,458) (419,443) Proceeds from interest income 154,410 103,454 Net cash flows from/(used in) financing activities Net increase/(decrease) in cash and cash equivalents 62,952 (315,989) 28,337,384 (899,159) Cash and cash equivalents at 1 January 34,241,532 35,140,691 Cash and cash equivalents at 31 December 24 62,578,916 34,241,532 The accompanying notes form an integral part of the Statement of cash flows.
55 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements For the year ended 31 December 2017 1.

Reporting Entity Water Authority of Fiji (the “Authority”) is a corporate body with perpetual succession and a common seal established under the Water Authority of Fiji Promulgation 2007 in Fiji.

The address of the Authority’s registered office is Kings Road, Nasinu.
The principal activity of the Authority during the course of the financial year was to harvest, treat and reticulate water for supply to its customers and to establish, operate and maintain systems for the provision of water and waste water services.

Other functions of the Authority are stated in section 7 of the Water Authority of Fiji Promulgation 2007.

2.

Basis of preparation a.


Statement of compliance The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB) and the requirements of the Water Authority of Fiji Promulgation 2007.

The financial statements were approved by the Board of the Directors on _____________________.

New standards and interpretations not yet adopted.


A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2017, and have not been applied in preparing these financial statements.

None of these is expected to have a significant effect on the financial statements of the Authority.

b.

Basis of measurement The financial statements have been prepared on a historical cost basis except where stated.
The accounting policies have been consistently applied by the Authority.

c. Functional and presentation currency The financial statements are presented in Fiji dollars, which is the Authority’s functional currency.

All financial information presented in Fiji currency has been rounded to the nearest dollar.
d. Use of estimates and judgments The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
56 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes: Note 3(b) - Property, plant and equipment Note 3(c) - Financial instruments Note 3(f) - Impairment 3.

Significant accounting policies a.


Foreign currency transactions Transactions in foreign currencies are translated to Fiji dollars at exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Fiji dollars at the exchange rate at that date.

The foreign currency gains or losses on translation are recognised in profit or loss.

b.
b.

Property, plant and equipment Recognition and measurement Items of property, plant and equipment inherited by the Authority from the Water and Sewerage Department prior to 1 January 2010 are measured at optimised replacement cost and additions thereafter are measured at cost less accumulated depreciation and impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset.
The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located and capitalised borrowing costs.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised net within other income in profit or loss.
Subsequent expenditure The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefit embodied within the part will flow to the Authority and its cost can be measured reliably.

The cost of the day-to- day servicing of plant and equipment are recognised in profit or loss as incurred.
Depreciation Property, plant and equipment including leasehold land, building, furniture and fittings, plant & equipment and motor vehicles, but excluding freehold land is depreciated using the straight line method, at rates which will write off the costs of those assets over their expected useful 57 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 lives.

Leasehold land is amortised over the period of lease.
The method of write off and the rates used are those considered appropriate to each class of asset.
The depreciation rates for each class of assets are as follows: Buildings and improvements 1.25% - 2.5% Water Distribution Equipment Sewerage Equipment Furniture and fittings Office Equipment Motor vehicles Computers 1% - 5% 1% - 5% 7% - 12% 3% - 12% 20% 33% Leasehold land Over term of lease c. Financial instruments Non-derivative financial assets The Authority initially recognises loans and receivables and deposits on the date that they are originated.
All other financial assets are recognised initially on the trade date at which the Authority becomes a party to the contractual provisions of the instrument.

The Authority derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.
Any interest in transferred financial assets that is created or retained by the Authority is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Authority has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market.

Such assets are recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.

Loans and receivables comprise other receivables and other assets excluding prepayments.
58 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank.

Bank overdrafts that are repayable on demand and form an integral part of the Authority’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.
The Authority initially recognises debt securities issued on the date that they are originated.

All other financial liabilities are recognised initially on the trade date at which the Authority becomes a party to the contractual provisions of the instrument.

The Authority initially recognises debt securities issued on the date that they are originated.
All other financial liabilities are recognised initially on the trade date at which the Authority becomes a party to the contractual provisions of the instrument.

Cash and cash equivalents The Authority derecognises a financial liability when its contractual obligations are discharged or cancelled or expired.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Authority has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Authority has the following non-derivative financial liabilities: trade and other payables.

Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest method.

Trade payables, provisions and other payables Trade and other payables are stated at cost.

A provision is recognised in the statement of financial position when the Authority has legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.
If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

d. Inventories Inventories are measured at the lower of cost and net realisable value.
The cost of inventories is based on the weighted average principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition.

In the case of work in progress, cost includes an appropriate share of construction overheads based on normal operating capacity.
Cost also may include transfers from other comprehensive income of any gain or loss on 59 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 qualifying cash flow hedges of foreign currency purchases of inventories.

e. Leased assets Leases in terms of which the Authority assumes substantially all the risks and rewards of ownership are classified as finance leases.
Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments.

Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.
Payments made under operating leases (net of incentives received from the lessor) are charged to profit or loss on a straight line basis over the period of the lease.

f. Impairment The carrying amounts of the Authority’s non-financial assets, other than inventories are reviewed at each reporting date to determine whether there is any indication of impairment.

If any such indication exists, then the asset’s recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit, or CGU”).

The Authority’s corporate assets do not generate separate cash inflows.
If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs.

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount.

Impairment losses are recognised in profit or loss.
Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

g. Employee benefits Superannuation Contributions are paid to the Fiji National Provident Fund on behalf of employees to secure retirement benefits.

Costs are included in profit or loss.


Short-term benefits 60 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 Short-term employee benefit obligations are measured on an undiscounted basis and are expensed in profit or loss as the related service is provided.
A liability is recognised for the amount to be paid under short-term benefits if the Authority has a present or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be measured reliably.

h. Revenue Revenue is recognised and measured at the fair value of the consideration received or receivable.

Revenue is shown net of value-added tax, returns, rebates and discounts, and foreign exchange gains and losses arising on sales transactions.
Revenue is recognised for the major business activities as follows: Government Grants Unconditional government grant related operating expenses are recognised in profit or loss as income when the grant becomes receivable.
Other government grants are recognised initially as deferred income at fair value when there is reasonable assurance that they will be received and the Authority will comply with the conditions associated with the grant and are then recognised in profit or loss as income on a systematic basis over the useful life of the asset.
Grants that compensate the Authority for expenses incurred are recognised in profit or loss as other income on a systematic basis in the same periods in which the expenses are recognised.

i.

Lease payments Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.

Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

j.
j.

Finance income and finance costs Finance income comprises interest income on short - term bank deposits and changes in the fair value of financial assets at fair value through profit or loss.

Interest income is recognised as it accrues in profit or loss, using the effective interest method.

Finance costs comprise interest expense on borrowings and changes in the fair value of financial liabilities at fair value through profit or loss.
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method.

k. Income tax The Authority’s revenue is exempted from Income tax as per a letter from Fiji Revenue & Customs Authority, dated 3rd February 2017.

The letter states the Authority’s revenue is an exempt income under Part 1(2) of the Income Tax Regulation 2016.
Value Added Tax (VAT) 61 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 Revenue, expenses, assets and liabilities are recognised net of the amount of Value Added Tax (VAT) except i) Where the amount of VAT incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense.
ii) For trade receivables and trade payables which are recognised inclusive of VAT.

The net amount of VAT recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

iii) The tariff rates charged to customers for water and waster water are exempted from VAT.

l. Change in accounting policy and disclosures In March 2016, the Government of Fiji announced that the Government Fiscal Year will now begin on 1st August and end on 31st July.
The previous financial year was based on the calendar year starting from 1st January till 31 December.

The change in government fiscal year had a significant effects on the financial statement of the authority as it received Government Grant.

Due to this change the authority is re-instating 2017 audited opening balances under IAS 8.Work In Progress balances reported as Assets relating to projects which were expense in nature needs to be closed on 31 December 2016.
These projects do not increase the Authority’s asset upon completion but is closed of as expense.

The re-instatement has nil effects on the profit & loss reported as at 31 December 2016.

“The Directors’ of the Authority have made adjustments & re-instatement to the Financial Statement to derecognise the recording of water and wastewater revenue on the face of the financial statement’s.
The correction has resulted in restating accumulated losses, contributed equity, trade and other receivables of prior year accounts.

Further information on the correction is set out in note 25(1).In the current year, the revenue relating to the water and waste water revenue has not been recorded in the statement of comprehensive income.” m. Comparative figures Comparative figures have been amended where necessary, for changes in presentation in the current year.
n. Standards issues but not yet effective A number of new standards and amendments to standards are effective for the annual periods 1 January 2015, however, the Authority has not applied the following new or amended standards in preparing these financial statements: The Authority has no plans to adopt the standards early and the extent of the impact has not been determined.
62 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 IFRS 9 amendments Financial Instruments (effective 1 January 2018) IFRS 15 Revenue from Contracts with Customers (effective 1 January 2018) 4.

Financial risk management Overview The Authority has exposure to the following risks: i) Credit risk; ii) Liquidity risk; iii) Market risk; and iv) Capital management.
This note presents information about the Authority’s exposure to each of the above risks, the Authority’s objectives, policies and processes for measuring and managing risk, and the Authority’s management of capital.

Further quantitative disclosures are included throughout these financial statements.

Risk management framework The executive management is responsible for managing the risks of the Authority on a daily basis.
There are established policies and procedures for the key business to manage the risks and develop a strong control environment.

a.

Credit risk Credit risk is the risk of financial loss to the Authority if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Authority’s cash at bank and receivables.

The Authority does not require collateral in respect of financial assets.
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

The maximum exposure to credit risk at reporting date is as follows: Cash at bank Other Receivables $ $ 62,567,386 34,232,502 22,246,585 6,818,766 Other assets excluding prepayments 105,925 393,279 84,919,896 41,444,547 63 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 b.
Liquidity risk Liquidity risk is the risk that the Authority will not be able to meet its financial obligations as they fall due.

The Authority’s approach to managing liquidity is to ensure, as far as possible, that is will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Authority’s reputation.
31 December 2017 Financial assets Carrying amount $ 6 months or less $ 6 - 12 months $ More than 1 year $ Cash and cash equivalents 62,894,097 62,894,097 Other receivables 22,246,585 20,949,694 1,296,891 Other assets excluding prepayments 105,924 85,246,606 83,843,791 1,296,891 105,924 105,924 Financial liabilities Trade and other payables 31 December 2016 Financial assets 28,938,966 28,938,966 571,965 571,965 28,367,001 28,367,001 $ $ $ $ Cash and cash equivalents 34,565,274 34,565,274 - Other receivables 6,818,766 6,158,429 660,337 Other assets excluding prepayments 393,279 393,279 - 41,777,319 41,116,982 660,337 Financial liabilities Trade and other payables 18,820,909 6,961,626 11,859,283 18,820,909 6,961,626 11,859,283 - - - - - - - c. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Authority’s income or the value of its holding of financial instruments.
The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The Authority does not have any significant risks in these areas.

Price risk The Authority does not have investments in equity securities and hence is not subject to equity securities price risk.
64 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 Cash flow interest rate risk As the Authority’s interest bearing assets are small relative to its operations, its cash flows are substantially independent of changes in market interest rates.
d. Capital management The Authority’s objectives when managing capital are to safeguard the Authority’s ability to continue as a going concern in order to provide returns and benefits for stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The Authority monitors capital on the basis of the gearing ratio.
The gearing ratios at 31 December 2017 and 2016 were as follows: Total liabilities excluding deferred income and employee entitlements 28,938,966 18,912,367 2017 $ 2016 $ Total assets Gearing ratio 5.

Revenue Government grant 6.

Other income Transfer from deferred revenue Other income 7.
Operating expense Chemical usage Directors fees Water and electricity Fuel and oil Plant and equipment hire Loss on disposal of fixed assets Professional fees Repairs and maintenance 1,889,003,800 1,819,248,891 1.53% 1.04% 78,899,685 78,899,685 (Restated) 72,071,657 72,071,657 47,698,253 1,049,313 48,747,566 49,125,459 201,001 49,326,460 2,123,106 35,954 22,532,211 1,891,873 14,192,790 - 3,379,654 44,144,269 2,223,771 28,536 18,152,881 1,669,869 9,872,304 22,876 2,180,284 53,482,492 65 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 Travel and accomodation Land compensation Insurance Office supplies, printing, stationery and upkeep Rent and security Advertising and awareness National Fire Authority refunds Others 8.
Personnel expenses Salaries and wages Annual leave Fiji National Provident Fund Staff welfare 2017 $ 915,033 645,374 877,000 625,163 2016 $ 393,023 - 711,329 474,645 1,748,123 1,510,533 276,281 404,380 2,532,573 98,732,047 118,301 343,047 1,799,514 94,936,223 29,190,577 21,390,775 1,337,073 2,582,425 840,368 1,636,110 1,813,482 1,185,900 33,950,443 26,026,267 The number of employees during the year was: 1,207 1,168 9.

Finance income and expenses Interest income on short-term bank deposits 10.
Cash and cash equivalents Cash at bank Petty Cash Cash on hand 154,410 154,410 103,454 103,454 62,567,386 34,232,502 11,200 330 8,700 330 62,578,916 34,241,532 Cash and cash equivalents earn interest at floating rates based on daily bank deposit rates.

Short term deposits are made from varying periods of between one day and three months, depending on the immediate cash requirements of the Authority, and earn interest at the respective short term deposit rates.
66 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 At 31 December 2017, the Authority had a $31.8m LC facility with BSP to comply with the contractual obligations of its several major Capital projects.
In addition, the Authority held cash of $276,172 (2016: $330,135) on Billpay accounts with ANZ, WBC and Bred bank that is restricted to be deposited to the Government of Fiji Consolidated Fund account as collection received on water and waste water revenue.

Furthermore, the Authority has $1.2m held as Retention for Outsource contractual works, performance bond of $53,720 and tender deposits held amounting to $849,965.

11.

Other receivables VAT receivable Other receivables 12.
Inventories Spare parts and tools Less: provision for stock loss Balance as at 31 December 2017 $ 6,902,562 15,344,023 22,246,585 $ 32,221,148 (947,500) 31,273,648 2016 $ (Restated) 3,042,271 3,776,495 6,818,766 $ 29,887,485 (947,500) 28,939,985 67 2017 Annual Report 13.
Property, plant and equipment - - - , 6 1 6 3 5 7 0 2 1 , ) 4 6 0 1 1 5 ( , , ) 7 5 6 8 5 2 0 4 ( , , 0 6 8 5 8 1 3 1 1 , , ) 7 5 6 8 5 2 0 4 ( , , ) 4 9 2 8 9 9 8 1 ( , - 9 7 1 3 9 1 , - - 6 1 2 8 7 , 2 0 6 4 5 5 , 2 7 2 1 7 6 , 2 5 6 9 4 1 , , 8 5 2 1 1 1 4 , , 8 8 3 0 6 9 1 , , 8 7 2 5 9 5 4 , 7 0 8 8 6 1 , 0 4 2 4 1 1 , , 2 0 2 9 2 7 2 1 , , 9 0 2 0 0 9 9 7 2 , , 7 4 4 8 6 2 1 , , 8 1 9 6 3 1 1 7 3 1 , , - - , 1 7 8 1 4 7 - - - - - - - , 6 9 1 4 9 6 2 , , 4 8 9 7 5 8 4 1 , , 3 7 6 1 9 6 , 8 7 6 9 6 9 0 1 , , 9 0 0 8 9 8 2 1 , , 5 4 6 8 0 7 2 8 2 , , 9 4 3 3 6 2 7 8 3 1 , , , 4 6 0 1 9 6 4 , , 2 8 1 7 9 6 6 3 , , 4 9 7 8 5 3 4 9 1 , , 4 8 0 2 8 5 3 8 , , 8 0 7 3 0 7 8 7 , 7 7 5 8 2 , 7 7 1 9 0 4 , , 3 9 2 6 4 9 1 , 1 4 9 3 6 3 , 2 6 0 8 6 , , 8 3 6 8 0 0 2 , ) 7 8 2 5 0 2 ( , - , ) 2 6 6 9 8 6 0 4 ( , , ) 3 7 4 0 9 3 0 7 ( , - - , 6 9 5 5 9 4 8 6 1 2 , , , 1 3 2 8 9 8 6 8 , - - - 7 7 8 9 9 3 , - - - - - , 6 5 6 6 5 5 3 , , 9 2 5 2 3 6 5 , ) 7 8 2 5 0 2 ( , - - , 9 0 8 9 6 0 1 , , 5 1 6 2 4 4 4 , , 1 2 7 8 7 8 3 2 , 3 6 4 0 4 4 , - ) 3 6 4 0 4 4 ( , - l a t o T $ , 1 6 4 8 0 8 5 2 1 2 , , , 6 9 9 4 8 5 8 7 , $ 0 0 3 1 7 3 , $ , 9 7 4 7 4 1 3 , , 6 3 2 6 8 6 3 , , 6 7 2 0 6 0 1 1 , , 2 3 5 9 8 3 5 7 2 , , 2 2 0 0 9 6 5 4 3 1 , , $ $ $ $ $ $ - ffi O e c ffi - 8 8 6 3 5 , 6 6 6 9 0 3 , , 0 2 6 8 7 8 7 0 4 , , 4 7 9 1 4 2 8 0 4 , - - - 6 6 1 8 8 7 , , 0 4 1 0 3 0 9 0 4 , , 2 2 4 4 4 5 5 2 1 , , 1 9 4 9 7 4 8 4 2 2 , , , 5 7 1 3 9 0 4 6 3 , , 7 9 7 7 0 4 8 5 , - ) 3 0 9 4 7 ( , , 9 6 0 6 2 4 2 2 4 , , 1 5 3 3 2 2 6 5 , - - , 0 2 4 9 4 6 8 7 4 , , 7 2 5 9 6 0 6 4 7 1 , , - - - - - - - - - , 0 4 1 7 2 8 0 4 1 , , 1 3 2 8 9 8 6 8 , 4 7 5 9 3 , 6 5 6 3 6 4 , 0 3 8 4 0 5 , , 8 4 4 2 5 3 2 , , 2 0 2 5 6 4 5 , , 6 9 1 2 7 7 6 2 , , 1 9 8 9 0 8 2 2 , - - 6 2
 2 9 8 1 , - - - - - ) 3 0 9 4 7 ( , - - - - - - , 4 4 0 4 2 4 2 , , 3 0 5 6 9 1 1 , , 9 0 6 8 6 9 6 , , 4 8 3 2 6 1 2 4 , , 0 9 9 0 3 1 1 2 2 , , 3 1 3 4 5 3 8 4 1 , 8 8 8 7 7 , 0 4 4 4 2 7 , 7 6 3 3 8 9 , , 5 1 7 2 9 0 2 , , 4 2 4 1 2 5 5 , , 7 3 1 3 1 2 7 2 , , 0 8 3 0 1 6 9 1 , - - 4 1 1 7 6 2 , 1 5 6 0 1 2 , - - - - - - - - - - - - , 4 8 4 8 4 1 3 , , 0 7 8 9 7 1 2 , , 2 1 6 2 3 1 1 , , 6 2 0 6 3 4 4 , , 4 2 3 1 6 0 9 , , 8 0 8 3 8 6 7 4 , , 7 2 1 4 4 3 8 4 2 , , 3 9 6 4 6 9 7 6 1 , , 3 9 5 0 6 7 5 , , 5 2 8 7 3 7 7 3 2 , , 8 2 9 5 0 0 0 5 1 1 , , , 1 6 6 7 8 8 9 5 2 , , 1 7 0 0 3 8 9 6 7 1 , , , 0 4 1 7 2 8 0 4 1 , 8 5 1 4 0 4 , 4 7 7 2 6 9 , , 8 0 8 9 8 7 8 , , 5 8 6 6 3 8 3 , , 7 3 8 4 2 0 5 3 2 , , 2 2 2 9 1 9 8 3 1 1 , , , 7 4 4 5 6 0 1 4 2 , fi i s s a c e R l s n o i t i d d A * fi / fi / n o i t a c e r p e D i ) d e t a t s e R ( fi i s s a c e R l s l a s o p s i D • This disposal includes rural projects handed over to communities and projects expensed upon completion.
During the year, $10.7m was allocated by the Authority for rural projects and project costs of $2,717,464 (2016: $2,110,815 ) was released from work in progress and deferred income in relation to completed rural projects.

68 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 14.
Intangible asset Cost At 1 January 2016 Additions At 31 December 2016 Additions At 31 December 2017 Amortisation and impairment At 1 January 2016 Amortisation At 31 December 2016 Amortisation At 31 December 2017 Net book value At 31 December 2016 At 31 December 2017 $ 1,925,442 1,024,759 2,950,201 526,965 3,477,166 1,102,169 880,531 1,982,700 669,026 2,651,726 967,501 825,440 Intangible assets includes licenses acquired previously by WAF for MapInfo system and Private Automated Branch Exchange (PABx) system currently used by the Customer Service department, Unlimited Pipe Modelling for the waste water modelling team, Sage 300 ERP and PayGlobal system used in Finance department and development costs for the Gentrack system.
15.

Held-to-maturity investments Current Term Deposit 2017 $ 1,326,710 1,326,710 2016 $ 1,323,742 1,323,742 Term deposit held with Westpac Banking Corporation Limited has a term of 365 days with interest rate of 1% per annum (2016: 1%).

16.

Other Assets and Prepayments Prepayments Other assets $ 816,505 105,925 922,430 $ 494,559 393,279 887,838 69 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 17.
Trade and other payables Trade payables Other payables and accruals $ 571,965 28,367,001 28,938,966 $ (Restated) 6,961,626 11,859,283 18,820,909 Terms and conditions of the above financial liabilities: - Trade payables are non-interest bearing and are normally settled on 30-day terms; and - Other payables are non-interest bearing and have an average term of 90 - 180 days.

18.
Deferred revenue - capital grant At 1 January Grant received during the year Refund of village contribution on rural projects 2017 $ 286,537,396 169,576,635 (77,670) Restated 2016 $ 231,992,329 104,580,151 (411,959) Transfer to ADB funded grant - - Reversal of completed fully funded/ rural projects (2,552,720) (2,110,815) Released to the statement of comprehensive income (43,891,010) (47,512,310) At 31 December 409,592,631 286,537,396 Defered Grant Capex is Represented by: Non current liability Current Laibility 365,701,621 239,025,086 43,891,010 47,512,310 409,592,631 286,537,396 All Government grants were used to fund the Authority’s capital works.
Annual depreciation and amortization is charged directly to the property, plant and equipment costs and a corresponding transfer from government grant to income is made each year to provide for amortization of the grant.

19.
ADB funded grant At 1 January Direct Payments by ADB Transfer from Deferred revenue - capital grant $ 68,398,812 2,635,050 - $ 70,011,961 - - Released to the statement of comprehensive income (3,807,243) (1,613,149) 70 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 At 31 December 67,226,619 68,398,812 Defered Grant Capex is Represented by: Non current liability Current Laibility 63,419,376 3,807,243 67,226,619 66,785,663 1,613,149 68,398,812 Suva Nausori regional water supply and sewerage project funded from Asian Development Bank original loan number 2055 – FIJ dated 27 November 2003.
The Project Management Unit at Water Authority of Fiji and Ministry of Public Utilities & Infrastructure Development implements the project, effecting payments through the Ministry of Finance and National Planning.

In 2009 Government of Fiji requested supplementary funding for Suva – Nausori regional water supply and sewerage project.

The ADB on 23 November 2009 approved supplementary loan of US$23 million through loan number 2603 – FIJ.
The project completion date was from 30 June 2012 to 31 December 2014.

The Project Management Unit at Water Authority of Fiji and Ministry of Public Utilities & Infrastructure Development implements the project, effecting payments through the Ministry of Finance and National Planning.

The Fiji Project Design Advance for Urban Water Supply and Waste Management Project began in December 2016.
The project will also support government to develop and implement policy and regulatory reforms in water and sewerage to make WAF a more sustainable and accountable institution.

A capacity development technical assistance was provided to prepare for the project.

During the year payments of $2,635,050.00 which was directly paid by ABD has been recognised as consultancy expenses and the same amount being recognised as Deferred Income in current year Profit & Loss Statement 20.
Provision for employee entitlement During the year, employees of WAF were entitled to annual leave that is accrual of 15 days per annum after completion of 3 months probation for new staff.

At 1 January Movement during the year $ 775,140 (370,062) $ 683,010 92,130 At 31 December 405,078 775,140 21.

Obligations under finance lease The above lease facility were arranged with Westpac Banking Corporation at the rate of 6.25% for a term of 48 months.

Refer to Note 22(c) for the commitment detail.


71 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 Current WBC loan account no.

9804538750 WBC loan account no.

9804596634 WBC loan account no.

9804463488 WBC loan account no.

9804438951 WBC loan account no.

9804438985 WBC loan account no.

9804201722 Total current Total $ - - - - - - - - $ 7,455 8,922 29,005 17,348 22,900 5,828 91,458 91,458 22.
Contingencies and commitments The directors are not aware of any contingent asset or contingent liabilities as at balance date a.

Capital expenditure Total capital commitments as at balance date is $31,618,993 (2016: $34,787,002) for capital projects.

b.
b.

Operating leases Future operating lease rentals of the Authority’s offices not provided for in the financial statements and payable: Within one year Later than one year but not later than five years $ 1,167,313 1,129,459 2,296,772 $ 1,501,341 3,368,816 4,870,157 c. Land lease The Authority has leased land listed as its assets.

The verification of all state land, iTaukei lease and freehold land has been completed and the report on them have been submitted to the Director of Lands for validation.
Additionally, co-shared land are undergoing survey before a final submission is made to the Director of Lands.

d. Contingent Liability The Authority is subject to certain claims made during the year.

Any financial commitments relating to these case is yet to be determined by the Court.

At the end of the financial year, guarantees given by the Authority’s bank on behalf of the Authority totaling $110,000 remained.
These guarantee facility were held for the Suva/ Nausori Sewerage 5F Project Samabula Ward for $50,000, Suva/Nausori Sewerage 5G Project Muanikau/Laucala Bay Ward for $50,000 and accommodation services at Cathay Hotel for 72 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 $10,000.
The Suva/Nausori sewerage projects have been completed and the Authority is no longer using Cathay Hotel for its accomodation services.

These guarantee facility is yet to be discharged at financial year end.

e. Finance lease commitments The Authority has entered into commercial leases on several 4x4 motor vehicles.

These lease have an useful life of 4 years with renewal option included in the contracts but no purchase options and escalation clauses.
Renewals are at the option of the specific entity that holds the lease.
Future minimum lease payments under finance leases together with present value of the net minimum lease payments are as follows: Within one year After one year but not more than five years More than five years Total minimum lease payments Less amounts representing finance charges Present value of minimum lease payments 2017 2016 Minimum payments Present value of payments Minimum payments Present value of payments - - - - - - - - - - - - 92,723 - - 92,723 (1,265) 91,458 87,128 4,330 - 91,458 - 91,458 23.
Related parties The Authority has related party relationship with its directors, key management personnel and the Government of Fiji.

a.

Directors The following were directors of the Authority during the year: Mr Bhavesh K Patel (Chairman) Mr Umarji Musa Mr PL Munasinghe Mr Bhavesh K Patel Mr Vijay P Maharaj Mr Hemant Kumar Mr Kamal Gounder Mr Paul Bayly current current current current current current current resigned Directors’ remuneration for services as employees is disclosed under Note 7.
73 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 b.
Parent authority and ultimate parent authority The Authority is a statutory body constituted by Water Authority of Fiji Promulgation of 2007 and the transactions with the Government of Fiji during the year are as follows: Grant received 2017 $ 248,476,320 Deposits to the Government Consolidated account (45,673,267) 2016 $ 176,186,578 (36,753,022) 202,803,053 139,433,556 c. Transaction with key management personnel Key management personnel comprises of: Mr Opetaia Ravai Chief Executive Officer Ended on 13 December 2017 Mr Samanmal Ekanayake Chief Operating Officer Appointed on 15 October 2015 Mr Pita Waqanivalu Acting Chief Financial Officer Ended on 5 February 2017 Mr Michael Lal Chief Financial Officer Appointed on 6 February 2017 Mr Sosiveta Turagaiviu General Manager Wastewater Appointed on 13 April 2016 Mr Taitusi Vakadravuyaca General Manager Special Projects Appointed on 9 June 2016 Mr Sekove Uluinayau General Manager Customer Service Appointed on 16 November 2015 Mr Seru Soderberg Acting General Manager Planning, Design and Construction Ended on 3 April 2017 Mr Nemani Waqanivalu General Manager Planning, Design and Construction Appointed on 4 April 2017 Transactions with key management personnel are no more favourable than those available, or which might be reasonably be expected to be available, on similar transactions to third parties at arm’s length.
The aggregate remuneration and compensation paid to key management personnel, for the year ended 31 December was: Short-term employee benefits 835,133 882,541 2017 $ 2016 $ 74 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 d. Other related parties Fiji National Provident Fund - member contribution 2,582,425 1,813,482 $ $ 24.
Notes to the Statement of cash flows Reconciliation of cash and cash equivalents Cash and cash equivalents at the end of the financial year as shown in the statement of cash flows are reconciled to the related items in the balance sheet as follows: Cash at bank Petty Cash Cash on hand 25.

Prior Year Adjustment 1.


Work-in-Progress $ $ 62,567,386 34,232,502 11,200 330 8,700 330 62,578,916 34,241,532 The adjustment is relating to projects which were expense in nature and needed to be closed off as at 31 December 2016.

These projects do not increase the Authority’s assets upon completion but is closed off as an expense.
The revenue recognition treatment & work in progress has been restated as follows: Statement of Financial Position As Previously Reported Adjustments "As Restated 31/12/2016" a.

Assets Property Plant & Equipment- WIP 1,756,373,289 (10,303,762) 1,746,069,527 b.
Liabilities Deferred Income Capex Grant 296,841,158 (10,303,762) 286,537,396 Statement of Comprehensive Income As Previously Reported Adjustments "As Restated 31/12/2016" c. Expenditures Repair & Maintenance d. Revenue 43,178,729 10,303,762 53,482,491 Transferred to grant income 38,821,696 10,303,762 49,125,458 75 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 2.
Revenue Recognition and Treatment The Authority have made adjustments & re-instatement to the Financial Statement to derecognise the recording of water and wastewater revenue on the face of the financial statement’s.

The correction has resulted in restating accumulated losses, contributed equity, trade and other receivables of prior year accounts.
Statement of Financial Position 1 January 2016 As Previously Reported Adjustments "As Restated 01/01/2016" Trade & Other Receivables 12,235,959 (10,228,693) 2,007,266 Other Total Assets 1,821,078,149 - 1,821,078,149 1,833,314,108 (10,228,693) 1,823,085,415 Trade & Other Payables 15,268,669 (661,493) 14,607,176 Others Total Liabilities Accumulated Losses Contributed Equity Total Equity 303,198,201 - 303,198,201 318,466,870 (661,493) 317,805,377 (232,852,610) (10,228,694) (243,081,304) 1,747,699,848 661,493 1,748,361,341 1,514,847,238 (9,567,201) 1,505,280,037 Statement of Financial Position 31 December 2016 As previously reported Adjustments "As Restated 31/12/2016" Trade & Other Receivables 5,466,277 1,352,489 6,818,766 Property Plant & Equipment (Note 25.1) 1,756,373,289 (10,303,762) 1,746,069,527 Others Trade & Other Payables 66,360,598 15,610,201 - 66,360,598 3,210,708 18,820,909 Deferred Income Capex Grant 296,841,158 (10,303,762) 286,537,396 Others Total Liabilities Accumulated Losses Contributed Equity Total Equity 69,265,410 - 69,265,410 381,716,769 -7,093,054 374,623,715 (264,463,432) (37,367,119) (301,830,551) 1,711,608,319 34,847,407 1,746,455,726 1,447,144,887 (2,519,712) 1,444,625,175 Impact of Revenue Recogniton & WIP Adjustment Statement of Comprehensive Income 31 December 2016 As Previously Reported Adjustments "As Restated 31/12/2016" 72,071,657 49,326,459 (94,936,222) 114,125,502 (42,053,845) 39,022,697 (89,319,186) (85,211,141) 10,303,762 (5,617,036) (21,382,128) (37,367,119) (58,749,247) - (85,211,141) Revenue Other Income (Note 25.1) Operating Expenses Others Loss for the period 76 Water Authority of Fiji Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 3.
Events subsequent to year end a.

Impact of COVID-19 pandemic Subsequent to year end, the World Health organization (WHO) declared the Coronavirus (COVID 19) a “Public Health Emergency of International concern”.

The impact of COVID-19 outbreak on public health and the economy in Fiji and globally is expected to affect the overall operation of the Authority including liquidity and cash flows for subsequent years.
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 2017 financial statements is not expected to be material.

b.
b.

Change in financial year Following the change of financial year of government from 1st August and end on 31st July, the Authority, as it receives Government Grant will now change its financial year in line with government in subsequent years.

c. Vacant Position of Chief Executive Officer The Chief Executive Officer position was vacated in December 2017 and remained vacant until subsequently filled in December 2019.

26.
26.

Contributed Equity The amount reflects the cost of assets when transferred from the Department of Water and Sewerage in 2010.

During the year, the Authority transfers water and sewerage rates to the Government’s consolidated fund account and charges this transfer against the contributed equity.

27.

Agency transaction administered for the Government The Authority charges and collects water and waste water rates and deposits these rates to Government Consolidated Fund Account.
During the year, the following rates and charges billed to the water and waste water customers: i) Billing Water Waste water Others* ii) Collection $ 40,357,604 4,143,910 3,434,807 47,936,321 $ 36,959,496 4,649,850 3,042,419 44,651,765 Water and waste water collected and deposited into the Government Consolidated account during the year was: 77 2017 Annual Report Water Authority of Fiji Notes to and Forming Part of the Financial Statements continued For the year ended 31 December 2017 Water, waste water charges and Others* iii) Rates owed to Government $ $ 45,695,548 38,058,201 Water, waste water charges and Others* owed to Government 38,577,874 37,740,884 $ $ *Others relates to reconnection fee, fire service levy, new connections, re-location of meter , re-printing of bill, special reading fee and meter testing fee.
78 Water Authority of Fiji 79 2017 Annual Report Suva/Headquarters Contact Manohan Building, Corner of Phone: [679] 334-6777 Wainivula Road, Nasinu or 5777 (Vodafone, Digicel & Inkk users) E-mail: contact@waf.com.fj P. O.
Box 1272 Suva Water Authority of Fiji LAUTOKA Manohan Building, Corner of Wainivula Road, Nasinu G P O Box 1272 Phone: [679] 334-6777 or 5777 (Vodafone, Digicel & Inkk users) E-mail: contact@waf.com.fj Nadi Credit Corporation Building, Namaka, Nadi Phone: [679] 334-6777 or 5777 (Vodafone , Digicel & Inkk users) E-mail: contact@waf.com.fj NAUSORI Lot 5 Cunnigham Street, Nausori Town Phone: [679] 334-6777 or 5777 (Vodafone, Digicel & Inkk users) E-mail: contact@waf.com.fj Labasa Lot 15 Jaduram Street, Labasa Phone: [679] 334-6777 or 5777 (Vodafone, Digicel & Inkk users) E-mail: contact@waf.com.fj Water Authority of Fiji 2017 Annual Report 81 Parliamentary Paper No.245 of 2020 2017 Annual Report