Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697754436458.pdf (Fiji)
ANNUAL REPORT 2021 F I J I N A T I O N A L P R O V I D E N T F U N D PP NO.
52 OF 2021 Corporate Statement Vision Securing your future Mission To understand our customers, offer quality services and ensure sustainable returns for meaningful retirement Values E T H I C Excellence We are committed to being the best and to deliver the best Teamwork We work effectively within and across teams to deliver results Humility We act in a manner that reflects our respect, willingness and inclusion of others Integrity We resolve to do what is right for our customers and colleagues even when no one is looking Courage We challenge ourselves to think big, be decisive and persevere to make a difference Cover Despite the challenges presented by the COVID-19 pandemic, the Fund continued to carry out its fiduciary duties - collecting, managing and investing members’ funds as best as we could, given the circumstances.
The economic slow-down from border closures worldwide, displaced many Fijians who found themselves out of work and in dire need of assistance.

In collaboration with Government, the Fund was at the forefront of relief efforts – providing thousands of members and their families with cash assistance.

FNPF has become a symbol of hope for many Fijians with provisions of relief for our vulnerable members.

These efforts reflected our major activities this year; and is the story behind our annual report cover.
About FNPF The Fiji National Provident Fund is a defined contribution fund that provides superannuation services to its members.

The operations of the Fund is guided by the FNPF Act 2011.

FNPF collects compulsory contributions from employees and employers towards the retirement savings of all workers in Fiji.

The Fund also provides pre-retirement benefits such as housing, medical, unemployment, funeral and education assistance.
FNPF is a major investor in Fiji and is one of the country’s largest property owner.

The Fund also owns majority shares in Amalgamated Telecom Holdings Pte Ltd, Vodafone Fiji Pte Ltd, Home Finance Company Pte Ltd, and fully-owns the InterContinental Fiji Golf Resort & Spa, Natadola Bay Championship Golf Course, Yatule Resort & Spa at Natadola Beach, Holiday Inn Suva, Fiji Marriott Resort Momi Bay, Sheraton Fiji Resort, The Westin Resort, Denarau Golf & Racquet Club and the Grand Pacific Hotel.
w w w. m y f n p f .

c o m .
f j A N N U A L R E P O RT 2 0 2 1 contents 2 4 5-6 7 8 10-11 12-15 16 18 20 2021, A COVID-19 Year At a Glance Highlights Member Profile Case Study – Zero balance accounts Message from the Chairman Chief Executive’s Report Meeting our stakeholder’s needs Our Road Map Our Operations Member Services Benefit Payments Pension Services Contribution, Compliance & Collection Legal & Prosecution Our Investments Fixed Income Treasury Commercial Lending Equities Properties & Projects Case Study Why we invest in Government Securities Enabling our Services Reaching our Members Communications & Awareness Managing our Risks Compliance Risk Policy & Government Complaints Our Governance Board of Directors Executive Team Our People Our Organisation Structure 24 28 30 32 34 38 40 41 42 44 Our Financial Statement 45-114 F I J I N AT I O N A L P R O V I D E N T F U N D 1 Darshika Raj is a 24 year old entrepreneur, who started her greeting card business ust Say It in March 2021 from her COVID-19 unemployment relief funds.
These helped pay for her accommodation in Suva, while she worked on her dream to get her business off the ground.

Her cards are now a hit in the local market and she believes that this would not have been possible had she returned to her hometown in Labasa, when she was unemployed.

Darshika w w w. m y f n p f .

c o m .

f j A year dominated by COVID-19 The 2021 financial year was overshadowed by the global health pandemic, COVID-19.
The major focus for 2021 was to effectively manage members’ on opportunities, create innovative solutions and mitigate risks to ensure the Fund remained sustainable.

capitalize funds, With thousands of members unemployed by the economic impact brought on by the pandemic, the Fund’s unemployment assistance continued throughout the year, with Government contributing substantially to the combined relief effort.
2 F I J I N AT I O N A L P R O V I D E N T F U N D The health and safety protocols that were enforced required our systems and processes to undergo continuous transformation so that we could offer our service in a safe space.

Our members were restless but our teams worked tirelessly to deliver, knowing that behind our members were countless individuals and families, who were equally reliant on the financial relief.
A total of 24 relief phases were rolled out, four phases are still active, while 20 have closed.

Close to 140,000 members were assisted, with a payout of more than $330 million since April 2020. w w w. m y f n p f .

c o m .

f j The 2021 financial year was overshadowed by the global health pandemic, COVID-19.

Employers were also assisted, with 1,143 exempted from penalties that would have been imposed under normal conditions.

As a result, 6.2 million in penalties was waived.
Our digital platforms were upgraded to offer our members, pensioners and employers, a safer physical distancing solution to access our services.

Several enhancements were made to the myFNPF App as relief phases progressed throughout the year.

Live webchat facilities and short code telephone numbers were activated in response to the high volume of queries.

Other engagement channels such as emails and social media were popular and were managed through resource planning and staff movements.
Despite all odds, the resilience of our members, pensioners, employers and our own people shone through, providing a glimmer of hope that the pandemic will not outlast us.

F I J I N AT I O N A L P R O V I D E N T F U N D 3 w w w. m y f n p f .

c o m .
f j 2021 AT A GLANCE General Reserve Investment Income $1.51b from $1.34b in 2020 Member Fund (excludes RIF and SDB) $6.4b from $6.3b in 2020 $592.1m compared to $424.4m in 2020 Contributions $321.3m compared to $591.4m in 2020 Interest Credited Benefit Payments $302.8m at 5% compared to $293.9m in 2020 at 5% Net Increase in Net Assets $496.5m compared to $320.4m in 2020 Total Assets $8.2b from $7.9b in 2020 4 F I J I N AT I O N A L P R O V I D E N T F U N D $500.8m compared to $438.9m in 2020 Members Served 700,366 increase of 27% from 2020 myFNPF app take up 163,393 increase in total user count by 126 from 72,264 w w w. m y f n p f .
c o m .
f j 2021 HIGH LIGH TS INVESTMEN T NET CON TRIBUTION S Portfolio Allocation Contributions less Benefit Payments 2021 44% 28% 6% 12% 10% 2020 45% 29% 6% 11% 9% Fixed Income Equities Properties Cash & Term Deposit Commercial Lending Income by Portfolio (excludes valuation gains) 2021 61% 17% 4% 13% 5% 2020 62% 21% 5% 1% 11% Fixed Income Equities Properties Cash & Term Deposit Commercial Lending 1,200 1,000 n o i l l i m $ 800 600 400 200 0 (200) 284.2 296.2 152.5 265.4 280.6 315.1 355.7 438.9 500.8 651.9 599.9 546.2 591.4 321.3 2017 2018 2019 2020 2021 -179.5 Contributions Benefit Payments Net Contributions ADDITIonAL CONTRIBUTION S VoLunTA ry CONTRIBUTION S The bar graph shows the increase in additional contribution by employers and employees (members).
4,515($3.3m) 219 ($4.06m) 6,596 ($6.3m) The bar graph reflects the change in contributions by voluntary members.

356 ($14.7m) 7,823 ($6.9m) 6,632 ($4.8m) 2020 2021 2020 2021 Employer Additional - no.

of employers & value Employee Additional - no.

of employees & value *Despite the reduction in the mandated contribution from 18% to 10% (10% employers & 8% members) a marked increase in additional contributions was realised .

*COVID-19 had impacted the number of new members joining the scheme in the year.
F I J I N AT I O N A L P R O V I D E N T F U N D 5 w w w. m y f n p f .

c o m .

f j HIGHLIGHTS 2021 BENEFITS $500.8m paid out to members during the year Early Housing $144.9m $117.5m in 2020 $66.9m $55.5m in 2020 Retirement Death Disability Migration Small Account $217.9m $191.8m in 2020 $34.2m $35.2m in 2020 (includes SDB) $5.1m $3.9m in 2020 $29.9m $33.6m in 2020 $1.9m $1.4m in 2020 *For breakdown of early withdrawals accessed by members in 2021 please turn to page 21.
PENSIONERS Pensioners by Age Group & Gender 2 3 14 63 10 55 191 200 375 533 806 876 667 540 177 24 942 938 741 669 9 yrs 90 - 94 yrs 8 - 89 yrs 80 - 84 yrs 7 - 79 yrs 70 - 74 yrs 6 - 69 yrs 60 - 64 yrs - 9 yrs yrs EMPLOYERS 9000 Active Employers 8000 7000 6000 5000 4000 3000 2000 1000 0 8,521 8,677 7,901 7,968 7,500 1,332 1,134 1,145 966 712 2017 2018 2019 2020 2021 Active employers Active new employers *These employers are those that paid their employees contribution at least once during the financial year.
700,366 In 2021 compared to 553,072 in 2020 CUSTOMERS SERVED Northern 45,429 By Divisions Western 185,681 Central 469,256 6 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .
f j MEMBER PROFILE 2021 MEMBERSHIP MEMBERSHIP 446,658 446,658 compared to 447,635 in 2020 208,574 Contributing Compulsory members 42% 58% SHARE OF WEALTH 6,632 Contributing Voluntary members 52% 48% Gender All members 56% 44% Count 44% 56% Share of Wealth 35% 65% MEMBER BALANCES BY AGE Member Balances ≤ 15yrs 16-24yrs 25-34yrs 35-44yrs 45-49yrs 50-54yrs ≥ 55yrs Total Zero Balance $0.01 and $5,000.00 7 1934 6149 10,780 6,905 7,196 25,741 58,712 837 44,612 65,356 42,115 14,016 10,140 11,212 188,288 $5,000.01 and $20,000.00 12 3,606 47,108 36,580 11,691 9,594 3,925 112,516 $20,000.01 and $40,000.00 $40,000.01 and $100,000.00 $100,000.01 and $2500,00.00 $250,000.01 and $500,000.00 $500,000.01 and above 1 - - - - 26 14,057 19,424 6,273 5,310 1,417 46,508 4 1 - - 3,288 15,360 131 2,162 3 - 180 18 6,701 2,130 186 31 5,446 1,244 32,043 2,362 272 71 742 195 107 7,528 836 227 GRAND TOTAL 857 50,183 136,092 126,619 47,933 40,391 44,578 446,658 *This includes 22,310 Voluntary members ERO BALANCES Count 58,712 *Refer to the Zero Balance Account Case Study on page 8.
25,550 >55YRS OLD 33,162 <55YRS OLD 25,145 PRE-PRESERVATION 405 POST-PRESERVATION 29,095 PRE-PRESERVATION 4,067 POST-PRESERVATION **Pre-Preservation - before 1 November 2014 ***Post-Preservation - after 1 November 2014 F I J I N AT I O N A L P R O V I D E N T F U N D 7 w w w. m y f n p f .

c o m .

f j CASE STUDY Zero Balance Accounts For years, the Fund has disclosed the number of members with ero balances as part of our annual report.
While these accounts do not hold any monetary value, the Fund is unable to terminate these as our laws prohibit us from doing so without members’ consent.

The ero balance accounts have gradually become a contentious issue, wrongly interpreted and misconstrued.

So, under the preservation policy, a member’s account is highly unlikely to be reduced to ero until and when the member fully withdraws from the Fund.
The table on Page 7 depicts the distribution of our members by age and balance cohorts.

The Fund has continued to redefine membership classification to reflect a realistic membership profile.

These accounts were reduced to ero prior to the Implementation of the preservation policy in November 2014, when members’ savings were split into sub- accounts – the preserved and general accounts.

The preserved account holds 70% of the members’ total balance, whilst 30 is in the general account.
The preservation rule basically locks a larger amount of members’ savings for retirement (70) and only allows members to access their general account for early withdrawals and special death benefit payments.

Findings on Zero Account Status The issue of zero balance accounts is not unique to the Fund.

Other superannuation funds around the world also carry ero balance accounts in their membership numbers.
While some key reasons are similar given the nature of operations and as a long-term customer-base institution, other reasons are unique to the Fund.

As at 30 June 2021, the total number of zero balance accounts - or accounts with ero balances was 8,712.
58,712 Zero accounts 44% 56% 25,550 years 33,162 years These member accounts have been reduced to zero balance because: there were no contributions paid to the account; no contributions were received for re-entrant accounts; 98 are accounts inherited from pre-preservation policy; there were inconsistent contributions and continuous withdrawals which depleted members’ balance; 97 are dormant for 10 years or more.
These are made up of members who: joined the workforce for a short period and had inconsistent contributions; joined the informal sector without any contribution payments to their accounts; 87 are accounts inherited from pre-preservation policy.

Way forward The Fund is exploring a number of policy changes and operation adjustments to address our membership data and reporting.
These include: i. to create an inactive account status for accounts with ero balances and with no transaction over a period of time; ii.

to reclassify members with dormant account with no transaction over a certain period; iii.

to validate our data to identify members that may be deceased and reclassify them accordingly; and iv.

to close dormant accounts for re-entrant members, who had withdrawn under an entitlement event and opted to rejoin, but have not had a single transaction since.
The Fund will continue to improve our membership data, and hope to present the new classification in future annual reports.

Closing a zero balance account Section 36 (6) of the FNPF Act stipulates that a member account will only cease upon reaching an entitlement event.

The entitlement events are specified in Section 4 (1) of the Act and the Fund can only act on it upon notification by member, or next of kin.
These entitlement events are when a member: i) reaches the prescribed retirement age, currently at ; ii) is no longer fit for employment under medical ground and advice; iii) permanently leaves the country to migrate to another; and iv) dies.

Unless the Fund is advised on the status of a member, especially if heshe is deceased, then hisher account remain open and are included as part of the total membership count.
8 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .

f j Viniana Taginavulau’s FNPF COVID-19 Relief funds was her primary source of income supporting her family through the pandemic.

She was able to use part of her funds to set up her floral business, which helped her earn extra income, boosting her ability to provide for her family.Viniana F I J I N AT I O N A L P R O V I D E N T F U N D 9 w w w. m y f n p f .

c o m .
c o m .

f j MESSAGE FROM THE CHAIRMAN Challenges relating to COVID-19 shaped all facets of FNPF’s operations in the past year.

The Board is acutely aware that COVID-19 has severely impacted our members, pensioners, employers, colleagues and communities.

Businesses that were hard hit such as those in the tourism, wholesaleretail, manufacturing and transport industries have yet to fully recover, and some may not recover at all.
FNPF has stepped up and shown the critical role it can play in supporting Fiji’s transition towards a post COVID-19 world.

We have been at the forefront of helping our key stakeholders deal with the difficulties that they face and we continue to positively contribute towards national efforts towards recovery and future growth.

Our staff have stepped up to provide their utmost care, passion and commitment to ensure support was provided to those members that came forward for various assistance.
Providing stewardship through a period of uncertainty The Board has been focused on making necessary adjustments to our operations and business strategies to ensure that FNPF continues to achieve its purpose.

We are mindful of the changing needs of members and are reviewing the role that FNPF should play in providing protection following unforeseen events.
In particular, withdrawal trends have indicated the growing reliance on FNPF savings by members, to provide immediate relief following unplanned events.

Cyclones and floods are now almost a certainty for every new cyclone season.

The most appropriate way of providing for the needs of the citiens of Fiji following events of this nature must be the subject of a national conversation.

FNPF is also operating in a changed environment affecting inflows into the Fund.
Monthly contributions were slashed by almost 0 during the year as a result of increased unemployment and also the reduction of mandatory contributions by law.

An ongoing challenge for the Board is to consider the best measures we can put forward to balance our long-term objectives with volatile situations that members will face before retirement.
The Fijian economy has been under significant stress this year and the Board has maintained a focus on ramifications for the investment performance of the Fund.

The Chief Executive Officer’s report discusses performance in detail, including the benefit that diversified sector exposures have provided in these exceptional times.
Serving the needs of our members In the past year, we introduced the ground breaking option of enabling all member accounts to receive contributions through all three streams - mandated contributions through the employer, additional contributions paid as employee benefit by employersemployees and paid through payroll, 10 F I J I N AT I O N A L P R O V I D E N T F U N D and voluntary additional contributions which can be paid directly by members into their own accounts.
This is a key strategy in building members balance so that they can build their account resilience.

This new account feature will empower our members to make the choice to boost their own savings and ensure that they benefit from the interest rates offered by FNPF.

The preservation rule and access to general entitlement strictly for specific lifetime events is a savings discipline which is uniquely available with FNPF, which is a strength of our member’s savings plan.
We can only encourage our members to take control of this important life-decision and to plan ahead as much as possible.

FNPF has never been more committed to bringing our services to you than now.

Member account details are Figure 1: Benefit of the Preservation Rule w w w. m y f n p f .

c o m .

f j Members, pensioners & employers turned out in numbers during the annual member forum, held at the new FNPF complex - myFNPF center in Nadi.

accessible and available online or through a phone call.
Information kits and support services for retirement counselling and financial planning can also be accessed remotely, thereby empowering members to make informed decisions for withdrawals.

Various withdrawal grounds may be available for members but we urge them to wisely plan decisions when accessing their retirement savings for early withdrawals.

Our contact officers, staff and management team would assist any member who may require clarification, assistance or advice.
possesses the necessary skills, technical expertise and capabilities required by the Fund and the Board during this time.

As an institution we have pursued the delivery of our services with excellence, creativity and passion, as well as a longstanding commitment to our members, stakeholders, the economy and society at large.

We acknowledge and seek to learn from those moments where our service delivery has been questioned.

We will endeavor to continuously improve our processes to achieve excellence.
All FNPF services are now available remotely.

The pandemic has forced us to limit face to face interactions as much as possible.

Your decision to utilize online platforms is a major step towards our common goal of stamping out the COVID-19 virus from our midst.

It is the Board’s firm ambition and determination that the Fund must listen and understand our members, to engage in more dialogue and partnerships and to pursue new initiatives in order to improve service delivery.
On the investment side of our activities, the Board is deeply aware that our strategies must be reflected in our bottom line through returns to our members.

We are focused on governance and risk management that supports the implementation of investment strategies consistent with FNPF’s objectives.

Our team and commitment There have been some key changes within the Board and Executive Management during the past year.
Ms Makereta onrote, vacated her position as Board Director following her resignation as the Permanent Secretary (PS) Economy.

Mr Shiri Gounder, Acting PS Economy has joined the Board to replace Ms Konrote.

I wish to extend our sincere acknowledgement and gratitude to Ms onrote for the five years she served as a Director on the FNPF Board.

On behalf of the Board and staff, I also welcome Mr Gounder; the Fund will no doubt benefit from his contribution and support.
We also farewelled the former CEO, Mr aoji oroi after his 10 plus years of service.

We express our gratitude to Mr Koroi for his contribution to the Fund through his dedicated leadership during his tenure.

We will continue to encourage a culture that reinforces the importance of risk management and focuses on personal accountability.

A culture where every single employee is proud of his or her role and contribution towards the FNPF vision.
Acknowledgement I would like to thank our members and stakeholders for always providing your candid feedback, which has allowed us to continuously improve.

I also acknowledge the efforts of our management and staff who remain committed to delivering the Fund’s roles and responsibilities.

All your sacrifice and hard work is a key pillar on which the Fund’s success is built.

But there is always more to do, there are more lessons to learn and more changes to make.
I encourage you all to remain focused and to keep on striving for higher standards.

Now is the time for breakthrough ideas, bold commitments and initiatives.

We will no longer survive just by mending the edges.

Finally, our victory over the COVID 19 pandemic requires our collective effort, we should all play our part.

Together, we will be Securing your Future.

It has also been a great pleasure for the Board to confirm the appointment of the new Chief Executive Officer, Mr Viliame Vodonaivalu.
We are confident that Mr Vodonaivalu Daksesh Patel Chairman F I J I N AT I O N A L P R O V I D E N T F U N D 11 w w w. m y f n p f .

c o m .

f j CHIEF EXECUTIVE’s REPORT Why we are here 2021 has undoubtedly been a challenging year for most of us as economic activities ground to a near standstill because of COVID-19.

Whilst acknowledging that our institutional strength was built on saving for retirement, we had to seriously evaluate this premise as members suffered from the pandemic.
We had to step up, within the confines of our laws and policies, to help members’ draw from their savings for their daily sustenance.

Although it did not cover all their personal losses, the financial assistance got them through one of the darkest phases of their lives and in our history.

The Fund served approximately 700,000 members, processed over 300,000 applications and paid out $500.8 million to members during the year.
The high volume of applications meant that we also attracted our fair share of complaints.

Our members’ feedbacks kept us honest and we simply had to deliver on our promises.

More importantly, at every opportunity, the Fund addressed operating challenges as we streamlined our services to make it efficient and relevant to our members.
Amidst the tough operating climate and rising expectations, our people stepped up to serve and provide continued confidence that the Fund was and continues to be financially-sound and administratively capable.

I am extremely proud of the professionalism, dedication and energy that my colleagues demonstrated as they helped ensure our members received the support they needed, whilst managing their own.
Balancing and adapting our role The challenge of increasing benefit payments, reduction in contribution rates and a tough investment climate required us to realistically adapt our asset and liability management approach.

We maintained an inflow and outflow consistent with requirements of liquidity, and an income yield to support and ensure our solvency position is protected.

We were continually challenged to find the right balance in new investments to support our operations under varying circumstances.
We were not spared either.

Our subsidiaries, tenants, borrowers and employers were struggling.

We made adjustments to support them and implemented moratorium on loan repayments, waiver of penalties, extension of payment dates, and reduction of rental costs to assist our tenants.

Our net contribution pool was impacted, perpetuated by increasing COVID-19 assistance payments.

Close assessment and monitoring was necessary to ensure the Fund was not compromised in any way.
12 F I J I N AT I O N A L P R O V I D E N T F U N D Members slipping into unemployment and under- employment continued to increase as the crisis infiltrated the central system of our economy.

The needs of our members could not be ignored.

We had to strike a balance between our fiduciary role and the demands of social responsibility.

We had to exercise humility a core value of the Fund.
It was no longer relevant to focus on our core purpose only but what we could do to make a difference in our members’ lives.

We also had to deal with restrictive inter- personal services that were managed with innovative and transformative services.

While we recognied the need, we also had to guarantee that we complied with health safety advisories aimed at protecting our members and staff.
In balancing competing and essential priorities, greater prominence was shifted to our risk management processes to ensure the Fund remains true to its purpose, and is not exposed or undermined in any way.

Our strategic direction for the coming year is to continue with our Member-Centric approach.

w w w. m y f n p f .

c o m .

f j Managing our risk The Fund identified imminent risks and formulated mitigation strategies related to all facets of our business.
ey operational plans were held back as risk- based strategies were operationalied to map our way through the crisis.

Liquidity was a key risk.

We understood that the value of some key assets would drop, affecting our revenue, and our withdrawal payments would be substantial.

Given physical distancing restrictions, our operational administration was shifted online.

This meant that the Fund was vulnerable to cyber security threats.
Our IT infrastructure upgrade were pushed forward to identify new and emerging gaps.

However, our efforts to stabilise and address low member balances was stalled.

How does the Fund manage governance and compliance risk without deviating too far from our fiduciary role to ensure members’ retire with a meaningful balance Finding the answer to this question requires collaboration between external partners including Government, to ensure the formulation of national policies that support this.
Meanwhile, the Fund will continue to review the scheme design so we could balance our commitment to our members to meet their needs, both immediate and for retirement.

Serving our members Providing COVID-19 Support Employing a member-centric focus, meant that we had to create greater efficiencies in our processes and offer new products to assist members and strengthen our reach.
We channelled payments totalling 277.2 million for COVID-19 assistance to our members - $172.3 million paid by Government and 104.9 million from members’ funds, during the year.

The reduction in contribution rate by 8 ( from employers and 3 for members) was extended to December 2021, to support employers reduce their costs and provide additional disposable income for their employees.
Additional support were provided to Employers with the waiver of penalties for late payment of contributions and the extension of the payment date by another month.

Enhancing Accessibility and Service Experience Digital services and processes planned for later years were fast-tracked to ensure access and adaptations to new operating conditions.

The Fund enhanced and developed existing and new social distancing solutions.
The mobile app was enhanced to enable members to apply directly without the need to visit their employer or visit our offices.

The game changer for this year was the Robotic Process Automation (RPA).

This saw applications being automatically processed from registration to payment without any human involvement.

It immensely improved the process turnaround time and accuracy.

By 30 une 2021, 82 of 120,000 COVID-19 applications were received online.
Further controls were also in-built into the administration system to complement the RPA functionality.

While necessity has certainly facilitated our technological needs, it has also increased engagement and take-up of the mobile app.

By the end of the financial year, our mobile take-up rate increased by 126 from around 72,264 in 2020 to 163,393 by 30 une 2021.
Tropical Cyclone Yasa relief In the midst of the pandemic, Fiji was unfortunate to be battered by the Category Tropical Cyclone Yasa, which wreaked havoc in the Northern region of our country.

In addition to the COVID-19 unemployment assistance, the Fund activated the Cyclone Yasa relief in December 2020, allowing members residing in cyclone-affected areas, to withdraw a maximum of 2,000 from their General Account.
FNPF paid out a total of 8 million to 5,621 members for this assistance.

Managing the challenges of services in a COVID-19 period Learning from our experiences on crisis management, operating at such a scale was not without its challenges.

From the onset, we were aware of the limitations we had and projected difficulties that could arise.
Anticipating all possible difficulties, frequent communications were pushed through social media and along with key information on the various products with elaborate infographics, posters, and instructional videos.

The same was carried out for our staff with trainings and &A sessions organised online to ensure consistency in messaging.

A live chat facility was launched on our website.


A complaints management system facilitated through our Information Center was resourced with a dedicated team to manage the influx of calls and emails for enquiries or complaints.

We acknowledge that an increase in online services will be met by a similar increase in online traffic.

The Fund made every effort to step-up and step-out to our members.

But, we also admit our shortfalls.

These F I J I N AT I O N A L P R O V I D E N T F U N D 13 w ww .
m y fn pf .

co m. fj Figure 2: Investment Portfolio Growth 8.08 7.85 7.39 6.50 5.79 5.09 4.79 4.46 3.47 3.71 3.82 4.11 n o i l l i b $ 9 8 7 6 5 4 3 2 1 0 The Fund used this downtime to upgrade two of its hotels, the Westin Resort upgrade project commenced.

This sector makes up 8% of our total investment portfolio.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 The telecommunication sector thrived under the crisis, learnings and insights will assist us to better manage our investment, the sector has been vital to the health of our portfolio.

Our Financial Performance Underlying Performance Despite the upheavals, the Fund managed to record a net income of $543 million in 2021 compared to $370 million lucrative returns.
Bond investments have undeniably been a substantial contributor towards the annual interest declared and distributed to members.

Fund also managed to save 6% on expenses compared to produced good return for our members.

Of course, the realised a substantial net increase in net assets of $496.5 employees.

contributed $331.3 million towards the net income.

other investment portfolio such as equities, commercial loans and properties added $212.1 million as well.
Due to such sturdy investment strategy of asset and liability matching the bonds.

The varying ability of the sectors further endorses our risks our investment encounters in different environments.

million was distributed to 389,986 members.

year.

rate of 3.5%.

The investments portfolio generated an ROI (return on investment) of 6.5% overall.

Looking ahead It is undeniable that the COVID-19 pandemic has changed our world forever.

billion this year.
billion this year.

Despite large volumes of withdrawals arising out of COVID-19 pandemic and reduced contributions from members, interest credited to members retirement withdrawals and the pro-longed administration of the COVID-19 assistance required an agile, innovative and transformed institution.

from $7.9 billion in 2020 to $8.2 billion in 2021. re-evaluation of our pre-retirement products, accumulation international borders severely halted our hotel operations.

suitable to Fiji’s context.


resultant effects of the second wave of the pandemic further exacerbated their performance.

Members need to be better protected against unexpected life events to support them without denying them the opportunity to pursue and achieve retirement security.
The Fund’s net assets stood at $8.2 billion with our strategic direction for the coming year is to continue only driven by demands and data insights, but also from business trends and shifts in the global superannuation market.

14 F I J I N AT I ON A L P R O V ID E N T F U ND w w w. m y f n p f .

c o m .

f j The Fund activated its Natural Disaster Relief during the year as it provided assistance to members who were affected by Tropical Cyclone Yasa.
Acknowledgement I extend my appreciation to our members for bearing with us throughout the year.

It has not been easy for all of us but the crisis has not broken us and will never conquer our determination.

I also thank our Employers and business community for their support.

They have been instrumental partners in our COVID-19 assistance roll-out and were there to assist our members and the Fund.
Our pensioners are never out of our sight and we hope they are enjoying their time with their families during this tumultuous period.

On a sad note, apart from financial losses, the Fund also recorded the deaths of some of our members and pensioners because of COVID-19.

We extend our sincere condolences to their families and to all members, who had to farewell their loved ones these past few months.
It would be amiss of us not to acknowledge the partnership and assistance of the Fijian Government in supporting our members through the crisis.

We hope to build on this partnership as we collaborate further to better serve and meet the needs of our members.

I thank the Chairman and Board Directors for their wisdom, counsel and guidance.

Their dedication to the Fund’s cause and the nation is admirable.

Their wealth of experience is indispensable to drive and direct the Fund to its next chapter.
Figure 3: Interest Credited 2016-2021 6.75% .

m 1 3 5 3 $ 5.0% .

m 8 2 0 3 $ 5.0% .

m 9 3 9 2 $ 6.35% .

m 9 6 9 2 $ 6.35% 6.25% .

m 0 0 7 2 $ .

m 5 9 3 2 $ 350 300 250 n o i l l i m $ 200 150 100 50 0 2016 2017 2018 2019 2020 2021 Finally, I owe my utmost gratitude to God for His wisdom and strength in this leadership journey and for His continued guidance in the stewardship of the country’s largest financial institution.
Vinaka vakalevu and I wish everyone a safe year ahead and certainly a year of growth and restoration.

I am indeed grateful to have the support and to lead a talented pool of staff and Management team.

Your strength and resolve drove the Fund’s performance in an extremely demanding year.

I also thank your families for their patience and support that allowed you to carry out your roles.

Viliame Vodonaivalu Chief Executive F I J I N AT I O N A L P R O V I D E N T F U N D 15 w w w. m y f n p f .

c o m .
c o m .

f j Meeting our stakeholder’s needs Refer to Table 1 for the roll-out schedule of Phases 2, 3, 4 voluntary & lockdown assistance in 2021.

Home Loan (mortgage assistance) The COVID-19 response home loan assistance was offered to members, whose employment was impacted by the pandemic, and had difficulties servicing monthly repayment for existing home loans.

This assistance was activated on 1 April 2021 and will close on 31 December 2021.
Through this home loan relief, members were able to access up to 50% of their preserved account, plus 100% of their general account to pay up to 12 months loan repayments.

As at end of June 2021, the Fund had paid out $5.3 million for 504 members.

Supporting our employers Employers were also assisted with 1,143 accessing the relief packages.

These employers were exempted from penalties that would have been imposed during normal times.

As a result, a total of 6.2 million in penalties was waived.
The employer’s relief package consisted of the following: 1.

Waiver of penalties 2.

Time payment arrangements 3.

Compliance letters 4.

Other third-party recoveries The Fund also encouraged employers to take advantage of the 10 tax deduction for employer additional contributions paid above the current mandatory of .
Supporting our pensioners As the second wave began in April 2021, the Fund encouraged members to access services online, as a preventative measure against the pandemic.

Similar to 2020, the Fund waived pensioners’ renewal certificates due during the months of May to September 2021.

These pensioners continued to receive their payments based on the presumption of life.
Supporting our tenants In understanding the surmounting challenges faced by all businesses, the Fund provided rental concessions to its tenants during the year.

Approximately 70 of our tenancies benefitted from the rental concessions, which amounted to 1.27 million.

The Fund also put on hold all rental that was due for review during the year, providing some respite for our tenants.
Without doubt, COVID-19 has once again demonstrated the important role superannuation industries play in supporting the well-being of their members.

FNPF proved this once again this year, when it rolled out various COVID-19 relief efforts to assist different clusters of members.

Acknowledging the importance of operating and making decisions within the provisions of our laws, the Fund explored and packaged assistance programs to benefit members, especially those affected by the pandemic.
Unemployment relief The Fijian Government’s subsidy for affected members ended on une 2021 for Phase 2 and Phase 3.

These two phases focused on members unemployed from October 2019 (Phase 2) and members who were on reduced working hours or wages (Phase 3).

The Government provided top up for members with insufficient general account balances since the COVID-19 unemployment relief began on April 2020.
In addition, the Fund also allowed members who were unemployed for longer periods (pre-COVID-19) and voluntary members to access their FNPF funds provided they had sufficient general account balances.

Phase 2 and Phase 3 members received a total of $249.6 million, of which 172.3 million was from Government top-ups.
Lockdown relief This relief was activated for members living or working in lockdown areas, to assist those who were unable to work because of the restrictions in movement and imposed physical distancing requirements.

The Fund paid 10.8 million whilst Government paid a top up of .7 million to members who had insufficient general account balance.
Non-Government top up assistance The Fund was also mindful that members who have been unemployed prior to the first wave of the pandemic and were directly or indirectly affected by the crisis.

We allowed these members, unemployed from anuary 2010 to September 2019 to apply for the unemployment relief.

This was termed as Phase 4.

Voluntary members were also allowed to access their FNPF funds to assist them with their needs.
Both these schemes gave members the opportunity to apply for a maximum of 1,000 provided they had sufficient general account balance.

A total of 11.

 million was accessed by Phase 4 and Voluntary members during the year.

16 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .
f j Table 1: FNPF COVID-19 Unemployment, Voluntary & Lockdown relief schedule Phases Phase 2 Round 1 - Govt top up Phase 2 Round 2 - Govt top up Phase 2 Round 3 - Govt top up Phase 2 Round 4 - Govt top up Phase 2 Round - Govt top up Phase 2 Round 6 - Govt top up Phase 2 Round 7 - Non Govt top up Phase 3 Round 1 - Govt top up Phase 3 Round 2 - Govt top up Phase 3 Round 3 - Govt top up Phase 3 Round 4 - Govt top up Phase 3 Round - Govt top up Phase 3 Round 6 - Non Govt top up Phase 4 Round 1- Non Govt top up Phase 4 Round 2- Non Govt top up Phase 4 Round 3- Non Govt top up Phase 4 Round 4- Non Govt top up Voluntary Relief Round 1- Non Govt top up Voluntary Relief Round 2- Non Govt top up Lockdown Relief Round 1- Govt top up Lockdown Relief Round 2- Govt top up Start Date 9-Jun-20 24-Aug-20 28-Oct-20 6-Jan-21 22-Mar-21 9-Jun-21 9-Aug-21 10-Aug-20 21-Oct-20 30-Dec-20 15-Mar-21 3-Jun-21 16-Aug-21 31-Aug-20 -May-21 11-Jun-21 9-Aug-21 26-Apr-21 9-Aug-21 26-Apr-21 9-Jun-21 End Date 14-Aug-20 23-Oct-20 31-Dec-20 11-Mar-21 27-May-21 25-Jun-21 1-Oct-21 16-Oct-20 24-Dec-20 4-Mar-21 20-May-21 22-Jun-21 1-Oct-21 31-Mar-21 31-May-21 30-Jun-21 1-Oct-21 30-Jun-21 1-Oct-21 31-May-21 25-Jun-21 F I J I N AT I O N A L P R O V I D E N T F U N D 17 w w w. m y f n p f .
c o m .

f j Our Road map 2021 The Strategic theme for 2021 was Resetting and Repositioning the Fund, taking measured steps in managing our operation through the uncertainty brought on by COVID-19.

We identified six key focus areas to drive our response to the crisis.

Strategic Focus s e m o c t u O 1.

Reinforce Our Governance 2.

Manage our Social Security Purpose 3.

Sustain our Digital Focus 4.

Rebalance our Investment 5.

Harness the Resourcefulness of our People 6.
Operational Efficiency To protect member savings and ensure our governance framework are strengthened To manage our social security role by offering services and products to meet our member’s needs To ensure our digital focus continues to lift and transform our operations to suit the changing business environment To review and provide a balance position of our investments To leverage on the strength of our people to deliver and adapt to the changing environment and pursuance of a more sustainable portfolio mix To effect measures to boost operational efficiency and manage our cost of doing business Assessed effectiveness of the governance oversight function on Board Governance issues, Risk Management and Compliance and Oversight Pertinent risks were identified and mitigation strategies were formulated accordingly Engaged BDO Australia to conduct a risk assessment for assurance purposes Strengthened management of the Fund to ensure the preservation policy is intact and guaranteed through various assistance.
Rolled-out nemployment assistance for members affected by the pandemic and those unemployed before 2019.
Partial employment assistance for members on reduced hours or wages rolled out as Phase 3 COVID-19 Home Loan assistance for members unable to meet their loan repayments Extending education assistance to Online Learning and Education Voluntary members assistance for those in the informal sectors IT Infrastructure revamp - Phase 1 Employer Portal improvements myFNPF mobile App enhancements ProMIS administration system enhancements Robotic Process Automation (RPA) solution for system processing of withdrawal applications Implemented LiveChat function on the website Improvement to data insights enable through Data Warehouse Online education withdrawal application submission Activate Work From Home capabilities with access to networks and online meetings function Established liquidity mitigation Transparent and updated communication to staff Established liquidity management strategies.
on the COVID-19 health measures, protocols, and committee to manage our Cashflow position Acquired BE building, in responsibilities Reviewed contribution and debt Suva’s central business district Established safety protocols within the office management policies as part of the Continued investments in ATH’s and provided assurance to staff of a safe working collection mechanism and relief provided to expansion in the region environment members and employers Stress testing of investment Engaged staff in health measures through Pursued additional contribution from portfolios to assess its strength organized corporate programs employers and employees to operate under duress Rolled out virtual engagement and webinar Scrutinised operational costs and Engaged in new investments sessions on health and wellbeing with working development of scenario plan in anticipation Re-valuation of our assets from home Sale of EFL shares of shift in environment Addressed member account reconciliation Established counselling facility for staff Carried out internal and assigned online trainings through the Percipio Skillsoft training platform 2022 Our experience last year has provided us with a grip on maneuvering through this crisis.
We have identified four strategic priorities for 2022 to transition the Fund to adapt to disruptions while continuing to forge a growth path.

Our Theme for this journey is Leading the Transition through a member-centric lens.

1.

Member Centric & Service Driven 2.

Realign Investments & Contribution Streams 3.

Digital Transformation & Business Resilience 4.
People & Culture Strategic Priority Planned Actions To understand the needs of our members, capitalise on feedbacks and data analytics to improve our services, products and enhance members’ retirement decisions To ensure a balanced investment approach to leverage portfolio growth and redirect contribution collection structure to ensure sustainable returns Implement member-focused products designed to meet the needs and diversity of our member makeup Activate sections of the FNPF Act yet to be deployed Review and rebrand of the voluntary product Formulate and implement a 360 degree service and know your Pursue investments in resilient sectors Review value outcomes of crisis affected portfolios Collaborate with Government for SOE privatiation, medical public private partnership and affordable housing customer’ facility Carry out member behavioural study Review of scheme design Educate members on retirement planning, and formulate retirement standards and information package Develop prime landproperties Drive additional contribution uptake Increase voluntary contribution Ensure sustainable returns to members 18 F I J I N AT I O N A L P R O V I D E N T F U N D To transform the Fund through integrated digital technology To empower our people to feel safe, upskilled and engaged and to harness the power of data to guide our governance, and to nurture the appropriate behaviors conducive to high operations and deliver value to members performing teams Automation of internal proceses in identified functions Establish a high performance culture through an agile work Identify new and enhance existing digital platforms and social environment distancing solutions pdate our administration system framework, ProMIS pgrade our information center Manage and rollout health and wellness conscious
 programs Establish and monitor standard practices on managing staff wellbeing Embed data informed practices through data internaliation plan Align and prioritise organisational training needs to strategic and fully functional data warehouse priorities of the Fund Improve data integrity and data standards of the Fund Formulate capacity plan for transition and future needs of the Fund Institute staff development practices with robust succession planning and training development w w w. m y f n p f .
c o m .

f j The Strategic theme for 2021 was Resetting and Repositioning the Fund, taking measured steps in managing our operation through the uncertainty brought on by COVID-19.

We identified six key focus areas to drive our response to the crisis.

1.

Reinforce Our Governance 3.

Sustain our Digital Focus 2.

Manage our Social Security Purpose 4.

Rebalance our Investment 5.

Harness the Resourcefulness of our People 6.
Operational Efficiency Strategic Focus To protect member savings and ensure our governance framework are strengthened To manage our social security To ensure our digital focus role by offering services and continues to lift and transform our products to meet our member’s operations to suit the changing needs business environment To review and provide a balance position of our investments and pursuance of a more sustainable portfolio mix To leverage on the strength of our people to deliver and adapt to the changing environment To effect measures to boost operational efficiency and manage our cost of doing business Established liquidity mitigation strategies.
Acquired BE building, in Transparent and updated communication to staff on the COVID-19 health measures, protocols, and responsibilities Established liquidity management committee to manage our Cashflow position Reviewed contribution and debt Suva’s central business district Continued investments in ATH’s expansion in the region Stress testing of investment portfolios to assess its strength to operate under duress Engaged in new investments Re-valuation of our assets Sale of EFL shares Established safety protocols within the office and provided assurance to staff of a safe working environment management policies as part of the collection mechanism and relief provided to members and employers Engaged staff in health measures through Pursued additional contribution from organized corporate programs employers and employees Rolled out virtual engagement and webinar Scrutinised operational costs and sessions on health and wellbeing with working from home development of scenario plan in anticipation of shift in environment Established counselling facility for staff Carried out internal and assigned online trainings through the Percipio Skillsoft training platform Addressed member account reconciliation Assessed effectiveness of the Rolled-out nemployment IT Infrastructure revamp - Phase 1 governance oversight function on Board Governance issues, Risk Management and Compliance and assistance for members affected Employer Portal improvements by the pandemic and those unemployed before 2019.
myFNPF mobile App enhancements ProMIS administration system Oversight Partial employment assistance enhancements Pertinent risks were identified and mitigation strategies were for members on reduced hours or Robotic Process Automation (RPA) wages rolled out as Phase 3 solution for system processing of formulated accordingly COVID-19 Home Loan assistance withdrawal applications Engaged BDO Australia to conduct for members unable to meet Implemented LiveChat function on a risk assessment for assurance their loan repayments the website purposes Extending education assistance Improvement to data insights Strengthened management of the to Online Learning and Education enable through Data Warehouse Voluntary members assistance Online education withdrawal for those in the informal sectors application submission Fund to ensure the preservation policy is intact and guaranteed through various assistance.
Activate Work From Home capabilities with access to networks and online meetings function Our experience last year has provided us with a grip on maneuvering through this crisis.

We have identified four strategic priorities for 2022 to transition the Fund to adapt to disruptions while continuing to forge a growth path.

Our Theme for this journey is Leading the Transition through a member-centric lens.

1.

Member Centric & Service Driven 2.


Realign Investments & Contribution Streams 3.

Digital Transformation & Business Resilience 4.
People & Culture Strategic Priority To understand the needs of our members, capitalise on feedbacks and data analytics to improve our services, products and enhance members’ retirement decisions To ensure a balanced investment approach to leverage portfolio growth and redirect contribution collection structure to ensure sustainable returns Implement member-focused products designed to meet the Pursue investments in resilient sectors needs and diversity of our member makeup Activate sections of the FNPF Act yet to be deployed Review and rebrand of the voluntary product Review value outcomes of crisis affected portfolios Collaborate with Government for SOE privatiation, medical public private partnership and affordable Formulate and implement a 360 degree service and know your housing Planned Actions customer’ facility Carry out member behavioural study Review of scheme design Develop prime landproperties Drive additional contribution uptake Increase voluntary contribution Educate members on retirement planning, and formulate Ensure sustainable returns to members retirement standards and information package To transform the Fund through integrated digital technology and to harness the power of data to guide our governance, operations and deliver value to members To empower our people to feel safe, upskilled and engaged and to nurture the appropriate behaviors conducive to high performing teams Automation of internal proceses in identified functions Identify new and enhance existing digital platforms and social distancing solutions pdate our administration system framework, ProMIS pgrade our information center Embed data informed practices through data internaliation plan and fully functional data warehouse Improve data integrity and data standards of the Fund
 Establish a high performance culture through an agile work environment Manage and rollout health and wellness conscious programs Establish and monitor standard practices on managing staff wellbeing Align and prioritise organisational training needs to strategic priorities of the Fund Formulate capacity plan for transition and future needs of the Fund Institute staff development practices with robust succession planning and training development F I J I N AT I O N A L P R O V I D E N T F U N D 19 w w w. m y f n p f .
c o m .

f j Our Operations Member Services Our operations were restrained whilst we complied with national health protocols to ensure the safety of our customers and staff during the year.

This resulted in a change in our mode of operations, with staff re- deployed to respond to the surge in queries received via telephone and email.

Of the 700,000 members served during the year, close to 00,000 visited the Fund’s offices an increase of 27 compared to the last financial year.
However, the uptake in queries received via telephone and email was quite notable with telephone queries increasing by 19.7 while emails increased by 80.7.

COVID-19 Response The extension of the relief phases meant that staff had to quickly grasp the finer details of each product prior to its activation.

Staff were continuously updated to ensure the same messages were disseminated to members.

Frequent refresher trainings were also conducted.


Despite constant updates to members, many still chose to visit our offices, resulting in queues and crowds gathering at FNPF offices around the country.

The team had to be reshuffled with staff deployed from other business units to assist with the high volume of queries.

Benefit payments The total amount paid to members under full withdrawal was 288.9 million a 2 increase compared to the 2020 payment of 26.9 million.
The total amount paid for early withdrawals was 144.9 million, compared to $117.5 million in 2020.

Withdrawals for housing assistance totaled 66.9 million, a 20% increase compared to $55.5 million last year, attributed to the COVID-19 response home loan assistance offered during the year.

Pension Services Pension related services saw 18,142 customers served during the year.
Of these 36 inquired about payments, 3 were for renewal certificates, for pension advisory and 6 for pension orders.

Pension take-up rate The pension take-up rate was 4.07 compared to 3.6 last year.

The take-up rate refers to the number of members purchasing one or any combination of FNPF’s pension annuity products over the total number of members that came forward to exercise their full withdrawal option.
20 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .

f j Figure 4: Pension Services accessed in 2021 36% Pension Renewal 53% 6% 5% Retirement Pension Advisory Pension Order Payments Member Counselling Session Retirement counselling sessions were organied for members nearing retirement age.

Attendees were provided their account balance and shown their projected balances at retirement.
Following these sessions some members signed up for additional contibutions to boost their savings.

Staff are trained to provide members with all the necessary information, empowering them to make practical decisions on their retirement savings.

These sessions are part of the Fund’s ongoing advocacy to assist members achieve their retirement savings goals.
Figure 5: Pension Takeup Rate for 2021 n o i s n e P r o f e l b i g i l E o N 1000 900 800 700 600 500 400 300 200 100 0 5.20% 5.09% 4.9% 4.15% 4.09% 3.19% 3.81% 3.58% 3.76% 6% 5% 4% 3% 2.85 % 2.39% 2.16% 2% 1% 0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Financial Year 2021 No Eligible for Pension under Retirement No Eligible for Pension under Death No Eligible for Pension under Medical Take Up Rate Figure 6: Early Withdrawals in 2021 $99.6m $70.02m in 2020 nemployment (COVID-19 Relief) $2m $3.5m in 2020 $29.4m $32.2m in 2020 $5.9m $6.8m in 2020 Medical Medical (LocalOverseas) Education (LocalOverseas) Funeral $8m NA in 2020 Natural Disaster $144.9m $117.5m in 2020 total early withdrawals paid to members Figure 7: Customers Served by Contact Types in 2021 137,641 46,540 in 2020 496,939 470.129 in 2020 e t a R p u e k a T n o i s n e P Phone Face to Face 65,786 36,403 in 2020 Email F I J I N AT I O N A L P R O V I D E N T F U N D 21 w w w. m y f n p f .
c o m .

f j A Facility Services Limited staff and FNPF staff going through the employee records.

Facility Services Limited is one of many companies that accessed FNPF’s COVID-19 Employer Relief.

This allowed the company to meet trade supplier debts and to assist their staff during the extended lockdown.

The company was also able to pay off accrued FNPF balances once operations picked up again.

The Employer Relief package was able to relieve the company of the financial pressures it had faced.
22 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .

f j Membership The Fund’s total membership at the end of the year was 446,658 - a decrease of 0.21% from 2020.

This figure includes 22,310 members registered as the voluntary members.

Employers The Fund’s active employers totaled 7,901 compared to 8,677 in 2020.

These are those employers that paid their employees contributions at least once during the financial year.
A total of 712 new employers were registered compared to 966 in 2020.

Total Contribution Contributions collected totaled $321.3 million compared to 91.4 million last year, a decrease of 4.

The decrease is due to the reduction in mandatory contribution from 18% to 10% on 1 April 2020 as a COVID-19 response measure to assist all employers.

The reduction is also attributed to loss of employment for members, as well as those whose working hours or wages were reduced.
received during the year; 142 complaints were from the central division, 46 west and 3 north.

From the 191 member complaints, 148 were resolved, 27 member complaints are awaiting employer response, 13 still under investigation and 3 awaiting member feedback.

Employer Penalty FNPF introduced an employer relief package for all employers during the COVID-19 period which included a penalty waiver for all employers that faced financial difficulties.
FNPF waived penalties totalling 6.2 million for 1,143 employers in the financial year.

Contract management A total of 121 legal advice were issued in 2021.

One hundred and thirty one (131) contracts were drafted and reviewed for and on behalf of FNPF and subsidiaries with a total contract value of $303.9 million.

Civil litigation Civil litigation cases for the year totaled 4, 36 of which are still pending in Court at the end of the financial year.
From the total contributions, 6.9 million was collected from voluntary members and 21.0 million in employer and employee additional contributions.

Member account transfers - family court orders 60 court orders valued at 0.3 million were processed for transfers between member accounts in the financial year.

Contribution Debtors The balance of unpaid contributions was 20.4 million at the end of the financial year, compared to 18.2 million in 2020.
Suspense A total of 0.2 million was transferred to the suspense account compared to $0.7 million in 2020.

These are contributions collected but not distributed to members’ accounts because of insufficient information provided by employers.

Unclaimed Deposits Account The Fund transferred $0.2 million of members funds to unclaimed deposits account after reasonable diligent inquiry.
Employer Portal Employers that registered for the employer portal totaled 1,122 bringing the total user numbers to 11,224 with a usage rate of 60.

Employer Inspection FNPF conducted ,142 employer inspections in which 2,19 employers were visited more than once.

Due to the second wave of COVID-19 in April, employer inspections stopped and staff were redeployed to other functions to assist with member applications and queries.
Employer Complaints – Nonpayment of member contributions One hundred and ninety-one (191) member complaints against 147 employers for non-compliance were Recovery of member contributions A total of 96 employers cases were registered during the year with the following breakdown: 2021 Sum No of cases Opening debt $1.6 million Current value of active cases $2.1 million Debt recovered Outstanding debt Civil recoveries $0.7 million $2.1 million $1.2 million 105 132 69 96 19 Cases prosecuted were initiated based on the following offences with penalties prescribed under the FNPF Act 2011: a) Failing to pay contributions for workers; b) Failing to produce documents on demand; and c) Failing to register as an employer.
Discharge of property titles FNPF continues to actively discharge all property titles for members who withdrew for housing assistance prior to November, 2014.

A total of 373 property titles were collected, 2,484 were ready for collection, while 167 are currently awaiting the endorsement of the Registrar of Titles before these are released to members or their lenders.

F I J I N AT I O N A L P R O V I D E N T F U N D 23 w w w. m y f n p f .

c o m .
c o m .

f j Our Investments Like most Funds around the world, the FNPF faced unprecedented challenges from 2020 to 2021 due to the COVID-19 pandemic.

The health pandemic and the requisite containment measures resulted in major human and economic losses worldwide.

In the domestic market, weakening aggregate demand brought a decline in many industries.

Reduced member contribution and accelerated withdrawals continued to exert pressure on the Fund’s liquidity.
Despite these challenges, we managed to sustain these pressures, maintain financial performance and continued to grow.

As a member-based superannuation fund, our primary responsibility is to operate in the best interest of our members.

Our highly diversified portfolio includes a wide range of assets such as properties, local and international shares, cash and cash equivalents, commercial loans and fixed interests.
The investment financial market experienced unprecedented volatility given the raging effects of the pandemic.

Despite these concerns, the Funds’ investments returns posited positive returns of 6.5% for 2021.

The investment portfolio grew from 7.9 billion in 2020 to close at $8.1 billion in 2021.

The net investment income before expenses for financial year 2021 is 42.9 million.
The Fund recorded an $8.2 billion of net assets for the year, which was the basis of a declared interest that saw the distribution of 302.8 million to 389,986 members.

Growth in fixed income securities, cash & cash equivalents and commercial lending was noted while the properties portfolio contracted due to the impact of the current subdued economic condition on the market valuation of properties.

Some investment highlights for 2021 are; 1.

ATH Share acquisition 2.


Commercial loans 3.

Acquisition of the BE Insurance Property Fixed Income Investments in fixed income securities has been the backbone of our investments portfolio with its low risk features and steady flow of income.

Over the year, tough competition from other investors and reduced interest rates was a concern.

The reduction in interest rate is a result of high liquidity levels.
However, the Fund managed to maintain our investments in bonds, which contributed towards the interest credit to member balances.

Government Securities The Government bonds portfolio increased from 3.4 billion in 2020 to $3.5 billion in 2021.

The increase was due to investments exceeding maturities.

Total investments in Government bonds was 282.8 million compared to maturities amounting to $148.96 million.
The increase in investments was a direct result of Government’s initiative to cushion the impact of the pandemic on the economy.

The bond rates fell during the year.

The 1-year bond rate closed at 4.8% at 30 June 2021 compared to 6.25% at 30 une 2020.

The 20-year bond rate closed at .2 at 30 June 2021 compared to 6.75% at 30 June 2020.

24 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .
c o m .

f j uasi-Government Securities The quasi-government securities portfolio consists of investments in statutory bodies such as Fiji Development Bank (FDB), Energy Fiji Limited (EFL), Housing Authority of Fiji (HA) and Fiji Sugar Corporation (FSC).

The investments in these bodies are guaranteed by the Government.

The portfolio closed at 6 million in 2021 compared to $124 million in 2020.

The reduction in the overall portfolio was due to maturities noted from HA and FDB.
In addition, some institutions took advantage of the low interest environment and redeemed their high-yielding bonds earlier to tap into the lower rates offered by commercial banks.

As a result, most institutions did not float long- term bonds and no new investment were made by the Fund.

Treasury Our treasury function acts as the custodian of cash and cash equivalents ensuring adequate liquidity is availabile to meet our financial obligations.
These include member withdrawals, operating expenses, investment payments and pension liability.

Liquidity in the banking system stood at 1,668.

 million against $751.8 million for June 2020.

The increase is attributed to the reduction in currency circulation and higher foreign reserves.

The Fund’s cash holdings (cash & terms deposits) in June 2021 was 816.7 million compared to 693.9 million in une 2020.
The increase is attributed to inflows from the sale of EFL shares in the last quarter of the financial year.

Local Term Deposits The local term deposits decreased from $383.0 million last year to close at 21.

 million this financial year.

The decrease was due to the redemption of term deposits for investments and member withdrawals.
Figure 8: Return on Investment Gross Figure 9: Investment Income Increase Decrease Total 71.0 19.0 27.1 0.4 -20.8 -17.7 53.2 278.1 130.9 n o i l l i m $ 600 500 400 300 200 100 0 Fixed Interest Commercial Loans Equities Properties Realised Gains Revaluation Gains- Properties Impairment Loss Other Investment Income Unrealised Gains Offshore Term Deposits and Cash The offshore term deposit and cash portfolio closed at 71.

 million in the review period compared to 1.7 million in 2020.
The increase is attributed to dividends from offshore equity investments and the injection of new funds approved by the RBF for offshore investment in Bank of the South Pacific (BSP) PNG shares.

Commercial Lending The commercial lending portfolio closed at $974.4 million (after impairment) compared to $889.3 million in 2020, equating to a growth on portfolio (net of impairment) of 9.7.

The portfolio felt the impact of subdued demand for borrowing following the second wave of the pandemic.
Loan accounts with exposure to the aviation and tourism sector continued to feel the prolonged impact of the pandemic due to the closure of borders and restrictions on travel.

As such, repayment relief put in place in 2020 were extended for an additional year.

Despite these challenges, the portfolio managed to grow both its sie and income.

Total income for the year was 3.1 million compared to 4.8 million last year, a growth of 15.94%.
As per requirements of IFRS 9, the portfolio was assessed for impairments based on an expected and forward looking credit loss model as opposed to an incurred loss basis. )

% ( n r u t e R f o e t a R 10.00 8.00 6.00 4.00 2.00 0.00 7.73 6.52 7.18 7.21 7.05 7.36 7.34 6.62 9.60 9.00 6.55 4.53 2010 2011 2012 2013 2014 2015R 2016 2017 2018 2019 2020 2021 Financial Year F I J I N AT I O N A L P R O V I D E N T F U N D 25 w w w. m y f n p f .

c o m .
c o m .

f j Equities Local Equities At the end of financial year, the local equities portfolio totalled $1.72 billion, a decrease of 2.1% in comparison with 2020’s 1.76 billion.

The decrease was mainly driven by the divestment of FNPF’s 20 stake in EFL and other smaller divestments in line with the Fund’s strategy to actively assess and enhance value of its current portfolio.
Moreover, additional investment of 46 million was poured into Amalgamated Telecom Holdings (ATH) via the ATH share rights issue.

A capital injection of $5.7 million was also allocated to our subsidiary; Health Care (Fiji) Pte Limited, which is a Public Private Partnership for the Lautoka and Ba hospitals.

Added to this were some dividend re-investments undertaken during the financial year.

Dividend income from the local equity portfolio totalled $36 million as opposed to $41.9 million in 2020.
This is a reduction of about 14.2 driven mainly by extensive trading in a COVID-19 environment, which reulted in negative knock-on effects were felt in the other sectors such as wholesale & retail, financial sector, telecommunications and infrastructure assets, amongst others.

Furthermore, the Fund’s annual fair value movements in subsidiaries and associates declined.

The revaluation of the Fund’s hotel subsidiaries took a further dip from 2020.
However, the telecommunication, financial and infrastructure sectors were less volatile and contributed to the stability of overall returns as a result of having a diversified local equities portfolio.

Figure 11: Total Equities Portfolio 2.3 2.2 1.9 1.6 1.2 n o i l l i b $ 3 2 1 0 2017 2018 2019 2020 2021 Offshore Equities The offshore equities portfolio increased from $463.6 million in 2020 to 03.8 million in 2021 a growth of around 8.7.
The change is predominantly driven by the additional investment into the Emerging Asia Fund of circa $20.1 million and unrealised capital gains of circa $20 million from Martin Currie Australia portfolios and BSP.

Dividend received in 2021 amounted to $35.1 million compared to 36.8 million for last year; a decline of 4.6.

This has been mostly due to the reduction in dividends received from BSP as a result of COVID-19.
Figure 10: Local Equities Figure 12: Offshore Sector Exposure Others 11% Infrastructure 14% 10% Real Estate Utilities 6% 1% Energy 58% Banks Unlisted Equities Local Unit Trust 0.1% 1.9% 7% 13% Associates 78% Investment Subsidiaries Listed Equities 26 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .

f j The acquisition of the QBE Insurance Arcade building further adds to the Fund’s overall property portfolio which now stands at 29 properties.
Properties The property portfolio consists of 29 properties, 19 of which are commercial properties leased for retail and office use and 10 vacant land held under the land bank with potential for future development.

For the year ended 30 une 2021, property portfolio value closed at $431 million compared to $440 million in 2020.

The reduction is the impact of the current subdued economic condition on the market valuation of investment properties resulting in a 5% loss on the overall fair value.
There was overall growth on leasable area following the acquisition of BE building in the year and the successful completion of My FNPF Centre in Nadi with a 68 occupancy status.

Occupancy rate for the property portfolio was 92 and portfolio income was 19 million compared to 19.6 million in 2020.

The reduction in income is attributed to the rental relief of $1.27 million provided to tenants for the year ending 2021.
As the economic climate persists, the vacancy levels would not drastically improve.

The same is true for rent serviceability by tenants.

However, we will continue to explore investment opportunities that will provide strategic growth options.

Projects Sheraton Refurbishment Project The refurbishment for Sheraton Fiji is due for completion in November 2021.

The refurbishment covers all facilities at the resort including the construction of a new sea wall to protect the newly upgraded property.
The resort will be better placed competitively, offering superior products and services when compared to other hotels in the same vicinity.

The closure of borders and low occupany was an opportune time for the Fund to upgrade the resort.

Marriott will be responsible for the hotel operation after the full completion of the renovations.

Westin Upgrade Construction of the Westin mock up room progresses with target for completion in October 2021.
The main focus for Westin would be the refurbishment of the mock up room and roof works.

The Tender process for phase 1 works for Westin is expected to commence from October 2021 with a maximum of 12 months’ construction period.

The FNPF Group comprises strong local & international brands such as: F I J I N AT I O N A L P R O V I D E N T F U N D 27 w ww .

m y fn pf .
m y fn pf .

co m. fj CASE STUDY Why Superannuation Funds invest in Government Securities Bonds are most commonly traded as Government therefore Funds have largely participated in making bond investments.

when it comes to long-term investments.

to diversify investment portfolios and to reduce risk.

The tenure of government bonds ranges from 5 to 40 years.
Such maturity terms are accommodative to investment needs of Funds’ whose member retirement Investing in Government bonds provides guaranteed returns and are less risky than other assets.

There are market related risks associated with government bonds, but holding the bonds until maturity can nullify these bonds and by remaining invested in government bonds until maturity, investors can derive maximum yield.
The bonds portfolio is largely stable and perform well when other asset classes are under pressure.

FNPF’s investment strategies have been aligned to its successful since the early 1970’s.

For individuals, bonds are especially popular if they are looking to save money for a long-term goal.

For example, you might buy bonds when you are in your 20’s or 30’s to afford a little extra cushion for your retirement.

You might also buy bonds for your children to cash out for college or a home during adulthood.
However, individuals lack the capacity to accumulate substantial funds to invest generally.

Institutional investors have capacity to accumulate money and From $10.7 million in 1970, the Fund’s investments portfolio has grown substantially to $8 billion in 2021.

This growth is a remarkable achievement.

(see Figure 13) Over the years, the Fund has successfully managed to grow all types of its investment portfolios.
Growth asset and non-statutory asset investments have grown faster than investment in Government securities.

In 2021, 43% of investment portfolio were in Government securities and 57% comprised growth assets, commercial lending and cash holdings.

In comparison to the 2004, Government securities comprised 58% of all investment portfolio and this reduced to 43% in 2021.

This strategic shift is a result of the Fund’s assets allocation strategies.
As shown in Figure 14, Government securities consists of bonds, treasury bills and RBF notes and are net of provisions.

Holdings in Government securities in proportion to investment portfolio have reduced since 2010 when the Fund embarked on growth investments to increase returns.

Like many superannuation funds around the world, FNPF investments in Government securities bring lucrative returns.
Bonds investments have undeniably been a substantial contributor towards the annual interest declared and distributed to members.

This stream of retirements.


Figure 13: Composition of Govt Securities in FNPF Investment Portfolio Government Securities Other Investment Portfolios n o i l l i b $ F I J I N AT I ON A L P R O V ID E N T F U ND w w w. m y f n p f .

c o m .
c o m .

f j Figure 14: Composition of Govt Securities in FNPF Investment Portfolio For FNPF, a diversified portfolio has proven to be a successful investment strategy.
This is a story that FNPF members should know to appreciate the sources of returns on their funds, and how these investment strategies grow their funds.

Government securities enhances cash flows with a fixed rate of interest paid bi-annually until the bond’s mature.

Returns are not only accrued but received throughout the investment period.

Contribution rates have generally increased over the life of the Fund.

Such increases have led to a boost in cash inflow streams demanding secured returns.
The Fund has actively invested these inflows into desired investment portfolios.

Apart from the 3.

 billion worth of Government securities in 2021, the Fund also held $4.6 billion of other investments.

Government securities are growing at a reducing rate and growth asset investments are growing at an increasing rate.

This is evident in Figure 15.

Steady returns from Government securities helped offset the volatility of equity prices.
The COVID-19 downturn and economic crisis bear witness to this.

We are fair to our members.

Member’s funds are invested in bonds which have low risk of default.

These are safe investment that provide security of funds for all our members.
Figure 15: Government Securities in Investment Portfolio 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 n o i l l i b $ Total Investment Portfolio Government Securities Government Securities portfolio has had steady returns and growth F I J I N AT I O N A L P R O V I D E N T F U N D 29 w w w. m y f n p f .
c o m .

f j Enabling our Services Infrastructure Revamp A major upgrade to the latest technology stack of the IT Infrastructure was completed during the year.

The upgrade included its servers, networks, security, storage and backup systems.

This upgrade enabled the Fund to provide the foundational platform for its Digital Strategy.

It would ensure that services are maintained and that systems and data are secure.
Member Digital take up Member digital take up increased by 91,129 from 2020 to 2021 and 74% of the applications received via digital platforms for processing.

This resulted in improved processing accuracy and faster response times.

Furthermore, the improved digital take up helped with the Fund’s operation during the movement restrictions and imposed safety protocols later in the financial year.
Robotic Process Automation The Fund leveraged on utilising the robotic process automation (RPA) technology in 2020, on this innovation.

RPA became the preferred solution for many of the COVID-19 related assistance.

p to 74 of the total applications received were processed and paid out through robotic process automation (RPA).

This allowed staff to focus on managing exception cases and promptly resolving member queries.
Employer Portal Revamp The FNPF Employer Portal serves as the digital window for the collection of contribution for members.

It is critical tool for the Fund, and we are pleased to report that 96 of our employers are now on board registered and enabled to use the portal.

30 F I J I N AT I O N A L P R O V I D E N T F U N D A total revamp of the portal was done using the latest technology stack.

The pilot phase was launched in March 2021 and the remaining phases will be completed in 2022.
Mobile Technology Mobile phones usage has grown significantly in Fiji over the last 12 months.

FNPF leveraged on this growth as it used the myFNPF app to introduce various COVID-19 relief schemes.

This helped mitigate the health concerns on travelling and social distancing during the pandemic.

In addition, it also saved members time and money from having to travel to their nearest FNPF office and also resulted in a faster turn-around time in processing their applications.
Members were able to monitor the progress of their applications from their phones.

The myFNPF app is arguably the local app with the most number of users with about 163,393 active users compared to all other mobile apps used in Fiji.

Housing Moratorium Assistance The Fund responded to the need of members for assistance with their Housing Loans.
To ensure that this was an efficient and effective process, technology solutions were provided to lenders to on-board member applications through the Employer Portal.

Agile and Responsive System New business requirements were developed regularly by the Fund to respond to members’ needs.

All these new requirements required technology to ensure that these changes could be implemented efficiently.

w w w. m y f n p f .

c o m .


f j The Fund had to find ways in which it could quickly turnaround solutions without comprising the quality of our service.

Our software development process had to adapt an agile software development methodology as well as a rapid application development method to respond to the needs of the Fund and our members.

Live Chat Introduced To assist with the lockdown situation, a live chat function was also implemented during the year.
In the first four days of implementation, a total of 191 chat sessions were completed successfully, with the second day peaking at over 830 chat session.

Many of our members have engaged the Fund through live chat and have become advocates to others as well.

Data Intelligence The Fund continued to capitalize on its data to provide insights and guide the decision-making process in relation to new products and continued improvements to existing services.
This has enabled improved turnaround times for making key decisions.

Work from Home With the COVID-19 pandemic requiring staff to work from home, the Fund’s IT systems and infrastructure capabilities were tested to deliver.

Staff were able to conduct almost all services remotely from their home.

Even the end of financial year 2021, interest crediting process was successfully completed remotely.
This showed the capability and stability of the IT Infrastructure, reflecting how the Fund had grown digitally.

The Microsoft Teams application proved to be an effective online communication platform for staff in 2021.

F I J I N AT I O N A L P R O V I D E N T F U N D 31 w w w. m y f n p f .

c o m .

f j Reaching our Members COVID-19 products formed the core of our communication efforts this financial year.
With various segments of the Fund’s membership impacted by the pandemic, implementing targeted communications was critical.

Media support and collaboration was critical during the year to ensure effective COVID-19 communications.

FNPF held 5 press conferences and issued 35 media releases that generated around 70 mentions during the year.
As the Fund suspended its walk-in services due to health restrictions, a majority of the Fund’s efforts focused on providing the necessary information online, as social media became the digital platform of choice for most members.

Strategic Communications As a form of reassurance for members, the Fund rolled out a proactive strategic communications program in 2021 that addressed recurring issues that resulted in negative publicity.
The Fund provided information and product support to members using the following platforms: frequent email blasts to members and employers hosted webinars and live question & answer sessions on Facebook consistent updates on social media press conferences hosted by the CEO & executives media releases extensive use of radio as a medium to broadcast urgent messages via 8 stations provided step-by-step video tutorials on the nemployment relief & myFNPF mobile app developed print materials in the main vernaculars (Hindustani and iTaukei languages) that was also pushed out on social media The Fund’s official communication channels were inundated with queries and follow-ups from members.
To help alleviate the ongoing demands from members, the Fund launched a livechat facility on the FNPF website.

The Fund also introduced a mobile short-code 5857 for members to call for queries, easing the tariff charges for Vodafone and Digicel mobile users who would have otherwised called FNPF’s landline, 3307811.
32 F I J I N AT I O N A L P R O V I D E N T F U N D Executive management were guests at radio and television talkback shows, responding to topics that questioned the liquidity and solvency of the Fund, sustainability, investment in Government bonds and supposed fraying of member confidence.

In addition, the Fund also produced 2-minute social media clips and monthly articles to help members gain a better understanding of these issues.
We plan to increase member engagement initiatives to ensure they are not easily swayed by individuals or groups with ulterior motives to discredit the Fund.

Facebook 65,719 followers Twitter 2,453 followers in LinkedIn 11,197 followers w w w. m y f n p f .

c o m .

f j Y u o r e COVID-19 RELIEF This information outlines the active COVID-19 Relief for FNPF members.

Phase 2, Phase 3, Phase 4 and Voluntary members will only access their General Account [No Government top-up].
Phase 2 Round 7 Members unemployed or on leave without pay from October 2019 Members unemployed or on leave without pay from October 2019 • 18+ years old • $720 - $2,640 payout from General Account (minimum GA balance $755) minimum GA balance $755) • Provide letter of unemployment (if April - 2021 onwards contribution exist) • Must apply on the myFNPF app • Not receiving Government assistance or any other FNPF COVID-19 relief , F F ) r o e n y : .
c N w  g l e P l a i s t e r e r m a ti o  F r e o m .

j i y i o n a l  2 0 2 1 N a t i n a u c d .
a t e l l w i d e r e s t b r e m a il i n o s m u 1 o D E e f o ll o e t h e r ( T I N ) s o r p    Phase 3 Round 6 n l o F A w t o d e m y  राहत C O V I D - 1 9 E L I E F F u n d C O V I D - 1 9 U n e m l o y m e n t o r a s e s  p r e o e n o n M o n d a y 9 t u u s t P r o v i d e n t   o u r a n d v o l u n t a r y m e m b e r s .
j e F i o r e y e o i e d t i s u s b e l :  p e m p o r t a n t t o n o t e  u n t w o ,   p p  d i n y
d i n y Members who are affected by reduced hours and/or reduced wage rates due to COVID-19   n n • 18+ years old o a n n o t a p p y o r o t p p N R A A N  • Must have previous month’s contributions paid or the contribution schedule to be uploaded.
N • $528 - $1,848 payout from General Account (minimum GA balance $563) [Reduced hours]  s t a ll p • $1,056 - $1,848 payout depending on your GA balance [Reduced wage rate] r e m a il a p p p S t o r e a • Must apply through your Employer a ll d n e c • Not receiving Government assistance or any other FNPF COVID-19 relief e r a p s t o r e o r A u m b .
P l e • Opens: 16 August 2021, Close: 17 September 2021 b il e n e r m o r t w i n d w it h F i s t e r o A T G S o o p f r o m G T I N d t o h e r (t h T E u m b G Phase 4 Round 4 e e u w ill n e r u m b n N F N e m y o Y a ti o u r F n ti fi e e m a il a Members unemployed from January 2010 to September 2019 (and still unemployed) o Y e x I d n l o a c ti v T • 18+ years old n a • A p 1 , d • One contribution paid between Jan 2010 to Sept 2019 n : S t e g i s t r a ti o • $720 - $1,100 payout from General Account (minimum GA balance $755) • Must apply on the myFNPF app g i s t e r b e • Not receiving Government assistance or any other FNPF COVID-19 relief e R n b il e A n t h o o r M u m b c t “ F F N P N n t e r F x u r T I N ( T e r ) e r u m b u m b n N n o n t e r y a ti o u r e m a il a c E n ti fi 5 F r e e I d n t e r y N u r F g i s t r a ti o a ) E o e r y s p a b m it r e o r a r y p a Must be a Voluntary member before 9 August 2021 u u r r e ( a t e m p s 6 • 18+ years old o n t t o y s ) • $720 - $1,100 payout from General Account (minimum GA balance $755) s d r e d • Must apply on the myFNPF app • Not receiving Government assistance or any other FNPF COVID-19 relief s d r e s & o r d Voluntary Relief Round 2 o r d w ill b n w s d e g i s t e r e A RARAA enera Aont
Aont A Yaca ni Veivuke Ka 2 ni Wasewase Ka 7 ni Wavoki A A  •  P a y m e n t M o d e A A  •   $$ e u i r e m e n t s p p p A
A A p p VI D - 1 9 P a s e 2 b eo re a lyin le a s e O u nin stall a n d re -in stall C p p P F a o n
p p g i s t e r n t o Pla y S to re e R t e m y F N u tt o k “ s s o t e : C li c “ b p d r e p u r e d A w e m a il a o t S p p 6 b ) N r N m a il o e e r. g i s t e r a n u m b E n t: b il e n r e o c o r m o
u r a o n I n t o y u t t o n I n b d e m a il B .
S i g n S i g e r u m b k o g i s t e r e C li
n t e r c 0 E 1 9 2nd Payment •  p • A     • $   • Veika e Gadrevi
p
p
A A
 i c a t i o n  A p p l i n e d e a d l B a t c h a p p r o v a l 
A u g 9 - A u g 2 0 N o .
3 A u g 2 1 - S e p t 1  1 7 2 4 - S e p t S e p t 3   p • $ •     A •   o m p f r y e b •   F A r y S t o P N Curubole F •  g l e P l a e m y (Voluntary o o r G Members) F V o l u n t a r y M e m b e r s Payment Timeline Phase 2, 3, 4 and Voluntary Relief •  •   • $  •  2 n d P a y m e n t   N o v 2 4  D e c 8   -   D e c 2 2    -    -  
A p p Your funds will be paid out in two (2) equal installments of the approved amount as per the schedule.
A p p   •     •   • m o u n t  p  A Application approval deadline Aug 9 - Aug 20 Aug 21 - Sept 3 Sept 4 - Sept 17 i n e p
  •   •   1 s t P a y m e n t A u g 2 5 8 S e p t 2 2 S e p t e lf - r e A .
S k o 2 C li c e l e 3 S 4 E Ka 4 ni Wasewase Ka 4 ni Wavoki t o a l y o w A p p Opens: 9 August 2021, Closes: 17 September 2021 i o n D u r a t     Batch No.
1 2 3 e l P a s e 2 o u n d 7 Nov 24 Dec 8 Dec 22 Aug 25 Sept 8 Sept 22 8  •  •  •  •  •  •  •   //- //         p p   ; •  •   $- $, $- $, //- // //- // u t t o p ” p e r / e - m a il 1st Payment          N a m e •   Follow us on d t h     App    i e   w p t y s i o  6 • • n  w •
i m e p p VEIVUKE NI COVID-19 Na veivuke ni Fiji National Provident Fund vei ira na tawacakacaka ena vuku ni COVID-19 e sa na dolavi tale tiko e na Moniti na i ka 9 ni Okosita, 2021 e na i karua, ka va kei ira na curubole (Voluntary Member).
eia ii me iai A
  •  //- // •  •  •  Levu ni Lavo Kerei vakacava App Kena Balavu Saumi vakacava AA App
AA  AA o m .fj h s P  www.myfnpf.com.fj   p f. c , 3307811/5857  o l o w u s o n F o l m y n p o m n d e ( w it h n 8 .
0 m o r e r e i e a t w o i n o r m a t i o n n p o m n t ) o r a W i n e r s i o 1 o r e m a il I n f o r m a ti o e ( w it h i O n 2 .
3 o r m o r e r e n t ) o r a 1 e r s i o 8 7 d r o i d v n 8 o r m o r e r e a ll 3 e ( w it , p l e p t a n A W i n n i P e c s : n S v s s c a c c e e e e 3 0 n o o n n d n h n o h h c c * A e c ana ni sasami n t ) n @ f n  info@fnpf.com.fj   Muri Keitou e na    Gauna ni Sausaumi 1 2 Tikinisiga ni Veivakadonui 9 Okosita – 20 Okosita 21 Okosita – 3 Seviteba 4 Seviteba – 17 Seviteba 3 na iri ni tt mo ai sioa se eioaoai ot ie at ena neito eiaa ena mynpom iri ena se emai i na
se emai i na inormationnpom mo ai sioa se eioaoai ot iri ena se emai A F n s o w u o ll o F o r m o r e i n f o r m a ti o Mātai ni Sausaumi 25 Okosita 8 Seviteba 22 Seviteba Karua ni Sausaumi 24 Noveba 8 Tiseba 22 Tiseba myFNPF App Registration & FAQ’s Follow us on For more information you can visit or live chat with us on our website www.myfnpf.com.fj, call 3307811/5857 or email information@fnpf.com.fj Housing Loan Assistance Member whose employment/wages has been impacted by the pandemic • Have an existing home loan & loan repayment holiday (moratorium) by 31 March 2021 • Legal owner of the property and residing there too (not investment property) • Eligible for 100% of general account and 50% of preserved account (balance at 1 April 2021) • Applications submitted through and funds paid to - bank/lender • Open: 1 April 2021, Closes: 30 September 2021 Annual Member Forum As stipulated in the FNPF Act, the Fund held four forums during the financial year to discuss the Fund’s financial performance with its members.
Doors to the new myFNPF Centre in Nadi were opened to members for the Nadi forum.

The other forums were held in Suva, Lautoka and Labasa.

About 550 members were in attendance and 40,000 more watched the facebook livestream sessions.

Advocacy & Awareness A total of 49 awareness sessions, attended by 1,733 members, were conducted during the year.

The Fund also hosted a retirement expo in October 2020.
The Fund will roll out a comprehensive awareness plan in the coming year to encourage members to save more and replenish funds they have withdrawn through the COVID-19 nemployment relief benefits.
Email Subscribers 172,524 Members 11,281 Employers 1,905 Pensioners Online Portal users 12,224 Members 46,395 Employers MyFund (*567#) users myFNPF Mobile App installs Website users page views 2,008,197 Recorded users 373,879 26,269 163,393 F I J I N AT I O N A L P R O V I D E N T F U N D 33 w w w. m y f n p f .

c o m .
c o m .

f j Managing our Risks Prudential Supervision The Fund continued to work with the Reserve Bank of Fiji (RBF) with the facilitation and provision of information for its offsite monitoring, quarterly prudential consultation meetings and updates on onsite examination recommendations.

The RBF conducted an onsite assessment during the year focusing on the Board’s conflict of interest review and culture and conduct risk.
This review is to ensure the Fund’s governance mechanisms are aligned to the regulatory standards, and are compliant with the policies of the Fund.

FNPF also continued to collaborate with the financial intelligence unit in accordance with the regulatory guidelines and policy advisories.

As part of the stakeholder consultation, the Fund also participated in the review of the superannuation supervision policy statement no.

1 on the minimum requirements for corporate governance for FNPF.
The revised prudential standards will be incorporated into the Fund’s policies once finalied and issued by the RBF.

Compliance Management The Fund’s compliance management framework provides the mandate for compliance to legislations, prudential guidelines and supervision statements.

Although there were disruptions to the performance of the function due to diversion of resources for the COVID-19 member assistance, the oversight role was carried out as follows: i.
Analysis and reporting on the annual declaration of interest by Board, management and staff.

The process was managed using a digital platform with little interaction with staff; ii.

Monitoring and reporting of cash transactions reports and suspicious transactions reports to the financial intelligence unit for further investigation and analysis; iii.
Regular reports to management on financial transactions and coordination of due diligence mechanisms for assurance and in line with the know your customer requirements established under the FTR guidelines.

iv.

Facilitated RBF on-site examinations and review of targeted areas during the year; v. Joint effort compliance check on the Fund’s digital platform used to on-board members as part of its digital strategy vi.
Facilitated the FY2021 risk review assessment for compliance and operational risks; and vii.

Review of compliance elements for the subsidiary governance of hotels.

Risk Management The challenges brought on by the COVID-19 pandemic led to identifying and monitoring of new and emerging risks in the ever-changing operating environment.
The level of complexity and uncertainty of the changing scenarios required frequent review of the Fund’s top risks, continuous oversight of operational risks and risk assessments on projects and other initiatives undertaken by the Fund.
Figure 16: Complaints Trend for the past 5 Financial Years d e v i e c e r s t n i a l p m o c f o o N 1,000 800 600 400 200 0 912 704 267 96 70 61 204 2017 2018 2019 2020 2021 Financial Year COVID-19 relief related Other 34 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .

f j Members continued to visit FNPF offices despite constant advisories from the Fund to access sevices online.
The Fund embarked on an independent review of our risks to provide added assurance to the Board that the risk universe is adequately scanned and mitigation plans were established; as a result of the COVID-19 pandemic.

A notable contribution was the assessment of the Fund’s governance position during the pandemic scenario and operating environment.

The exercise is expected to identify areas of improvement in risk management.
Business Continuity Planning (BCP) was critical in the successful delivery of the Fund’s operations in the COVID-19 environment, especially during the second wave of the pandemic.

Relevant protocols for COVID-19 operations were established including the facilitation of a fully-fledged work from home BCP simulation test in November 2020.

This allowed the Fund to manage its key functions remotely, and meet stakeholder expectations.
A lockdown plan was also developed outlining the Fund’s response to certain indicators pertaining to COVID-19 inclusive of a nationwide lockdown.

The plan served as a guide for managing system readiness and the continual delivery of critical services to our members Policy & Governance FNPF continued to revise policies and strengthen governance mechanisms to ensure alignment to the organization’s corporate values, culture and strategic themes during the year.
Regular assessments were conducted on the Fund’s governance mechanisms, as well as the Board’s oversight of our operations.

The assessment noted that the Board governance status was strong, with continuous oversight over the organiation’s functions.
Similarly, the governance of hotel policy and structure was also formalied for the FNPF hotel’s board committees, to allow standardised reporting and monitoring of hotel operations Complaints Management The Fund ensures that issues raised by members, pensioners, employers and stakeholders on its operations and policies are managed promptly and satisfactorily within the stipulated turnaround time.

Figure 16 shows the complaints trend for the past five financial years.
Analysis on root causes for complaints were assessed to enable the Fund to improve on areas with recurring complaints.

uarterly reports were also provided to the RBF in accordance with the regulatory requirements.

The Fund encourages a positive and open working relationship within departments to ensure ownership of complaints resolutions.

F I J I N AT I O N A L P R O V I D E N T F U N D 35 w w w. m y f n p f .

c o m .
c o m .

f j The evolving risks stemming from the COVID-19 pandemic required internal audit agility to deliver key objectives.
The key areas of focus for Internal Audit (IA) during the financial year were as follows: Members services for COVID-19 assistance; Project management and governance for investment and IT; Information ad cyber security Credit risk- commercial lending investments The voluminous processing of COVID-19 unemployment withdrawals resulting in a substantial outflow of funds in member payments, required continuous audit monitoring through on-going data analytics.
Data analytics enabled real-time monitoring and a wider net of compliance checks as opposed to conventional methods of sample selection.

A total of six (6) reviews were carried out during the year on the various phases of COVID-19 Relief assistance.

Our challenges varied from working with available resources, reassignment of staff to member services, delays in provision of internal audit requests and keeping up with the pace on the implementation of various projects.
Dedicated and collapsible audit teams were assigned to various projects, leveraging on specialized staff competencies and technology, communication platforms and the continuous monitoring of audit projects was key to achieving objectives and meeting challenges.

The Fund plans to strengthen the monitoring of operations by enhancing IA exception reports and cyclical reporting.

Opportunities exist on working closely with the risk management function to provide combined assurances on certain Fund projects.
Audit of wholly-owned subsidiaries and hotel operations have also been planned in the 2022 thus filling the vacuum created from movement in resources and recruitment of specialized skillset.

Audit Status Count AuditInvestigations planned (AWP) AuditInvestigations completed Audits in Progress (planned) Investigations (unplanned) 50 43 9 27 36 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .

f j Ron Khan and Sanivalati Vukinagauna of Divine’s Kitchen.
A group of friends, who once plied their trade in the tourism sector, pooled their skills during the COVID-19 pandemic to establish a catering business called Divine’s Kitchen.

Based in the Western Division, the popular catering business provides hearty home-cooked meals to more than 100 customers each week Group member, Ron han said when FNPF rolled out its pandemic unemployment assistance, they decided to utilie part of the fortnightly assistance to kick start their business.
Divine’s Kitchen F I J I N AT I O N A L P R O V I D E N T F U N D 37 w w w. m y f n p f .

c o m .

f j Our Governance The Board The FNPF Board is given the responsibility under the FNPF Act 2011 to govern the Fund and exercise oversight on the administration of the organization.

The functions and role of the Board are set out in Section 6 of the Act.

Board members are appointed by the Minister for Economy in accordance with Section 7 of the Act, subject to a fit and proper assessment by the RBF.
The Board comprised six directors with Daksesh Patel and Sanjay aba continuing as Chairman and Deputy Chairman respectively oel Abraham, Mukhtar Ali, alpana Lal and Makereta onrote were members.

Ms onrote left the Board following her resignation from her position as Permanent Secretary for Economy on 1 February, 2021.

Acting Permanent Secretary for Economy, Shiri Gounder was appointed to the FNPF Board on 16 March, 2021 to replace Ms Konrote.
In exercising its roles under the law, the Board is governed good governance requirements in place to manage conflicts of interest and delineated powers and responsibility of the Board and the management.

The RBF is mandated by law to conduct regular and periodic reviews to ensure the appropriate performance of the Board are in compliance with good governance practices.
The Board further comprises four board committees which also provide technical support and advice on pertinent matters submitted by Management for Board decision.

The Board committees includes Independent members who are experts in the relevant fields of these subcommittee.

The powers of the Board to establish these committees are set out under section 16 of the Act and the FNPF Regulations, 2014.
The Board has established committees on audit and risk, human resources, investments and information technology.

The committees convene on a quarterly basis or as required to deliberate on specific matters recommended by management before these are tabled to the Board for decision.

38 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .
f j Table 2: Board and Board committee meetings and attendance in 2021 Board Members BOARD BARC BIC BHR BIT No of meetings No of meetings No of meetings No of meetings No of meetings Held Attended Held Attended Held Attended Held Attended Held Attended Mr Daksesh Patel (Chair- man) Mr Sanjay aba (Deputy Chairman) Ms Makereta onrote Ms Kalpana Lal Mr Mukhtar Ali Mr oel Abraham Mr Shiri Gounder 13 13 13 13 13 13 13 12 12 5 13 13 10 1 1 July 2020 to 31 June, 2021 5 5 5 4 5 5 5 5 5 4 5 5 4 1 4 4 Board Committee Members BARC BIC BHR BIT Held Attended Held Attended Held Attended Held Attended Other Board Committee Members Mr Taito Waqa Ms Thelma Savua Mr ameli Batiweti Mr Geoffrey Rashbrooke Mr Gitesh Nair Mr Nacanieli Rika Mr Timoci Tuisawau Mr Vilash Chand Mr Chinthake Ranasinghe Mr ohn Magnifico Ms Emily Yalimaiwai 5 5 5 1 3 5 5 5 5 5 4 4 4 4 4 4 2 3 3 4 5 1 Ms Makereta Konrote vacated her position on the Board and Board HR committee on 1 February, 2021.
Mr Joel Abraham was appointed Chairman of the Board HR committee to replace Ms onrote.

Director Abraham attended only one meeting as a result of his appointment late into the financial year.

 Mr Shiri Gounder was appointed on 16 March, 2021.

Mr Taito Waqa resigned from the Board HR committee on 12 October, 2020.

Ms Thelma Savua resigned from the Board HR committee on 5 March, 2021.
BOARD AUDIT & RISK COMMITTEE (BARC) Kalpana Lal (Chairperson) Mukhtar Ali Geoffrey Rashbrooke Gitesh Nair Nacanieli Rika BOARD HUMAN RESOURCES COMMITTEE (BHR) Joel Abraham (Chairperson) ameli Batiweti FNPF BOARD BOARD INVESTMENT COMMITTEE (BIC) Sanjay aba (Chairperson) Mukhtar Ali Kalpana Lal Joel Abraham Emily Yalimaiwai BOARD INFORMATION TECHNOLOGY COMMITTEE (BIT) Joel Abraham (Chairperson) Timoci Tuisawau ohn Magnifico Chinthake Ranasinghe Vilash Chand F I J I N AT I O N A L P R O V I D E N T F U N D 39 w w w. m y f n p f .
c o m .

f j w w w. m y f n p f .

c o m .

f j Board of Directors Mr Daksesh Patel Since January 2020 Mr Sanjay aba Since January 2020 Mr Mukhtar Ali Since January 2020 Mr Shiri Gounder Mr Joel Abraham Since March 2021 Since April 2019 Ms Kalpana Lal Since April 2019 Mr Daksesh Patel - Chairman structural engineering.

Mr Patel was born and raised in Ba.

He was the InfraBuild CEO from October 2019 to uly 2021, helming the business during a time of transformational change.
As CEO, he led transformation activities to arrest the business’s performance trajectory, setting the foundation for optimization and establishing a platform for future growth.

He is a current Director of InfraBuild, Australia’s largest vertically-integrated long steel manufacturer, as well as a member of the global LIBERTY Steel Group Board.

He founded Mesh & Bar, Australia’s largest independent steel reinforcing company, in 1988.
He has extensive leadership experience in the Australian steel industry, in manufacturing, retail and governance and has held senior leadership roles in privately-held businesses operating throughout the Oceania region.

He is the current Chairman of EFL.

Mr Sanjay Kaba - Director Chairperson of the Board Investment Committee.

He has vast experience in project development, project management and planning and civil He is also a director of Vodafone Fiji Limited.
He is a professional member of the Australian Institute of Engineers and the Fiji Institute of Engineers.

Mr Muktar Ali - Director Member of the Board Audit and Risk Committee and of the Board Investment Committee.

Mr Ali is the Executive Vice President and Chief Credit Officer of the Community Bank of the Bay in Oakland, California, USA.

He is an expert in enhancing profitability, developing strategic lending initiatives and has vast knowledge in banking regulations.
Mr Joel Abraham - Director Chairperson of the Board Human Resources, Board Information and Technology Committee and Member of the Board Investment Committee.

He has extensive experience in the areas of accounting, business advisory, compliance, finance, regulatory, and research.

He is a member of the Australian Institute of Company Directors, Association of Certified Fraud Examiners, CPA Australia, and a Chartered Accountant.
Mr. Abraham holds a Master of Commerce in Professional Accounting, Master of Arts in International Relations and Diplomacy and, Post Graduate Diploma in Climate Change, Post Graduate Diploma in International Relations, Post Graduate Diploma in Public Law and Bachelor of Commerce in Accounting and Economics.
Mr Shiri Gounder - Director Mr Gounder is the Acting Permanent Secretary for Economy and has over 1 years of professional experience in the areas of national budget formulation, taxation & customs policy, public financial management, macroeconomic policy and strategic management.

He is also a Director of the Reserve Bank of Fiji, Fiji Revenue and Customs Service, Energy Fiji Limited, Unit Trust of Fiji and Fiji Investment Corporation Limited.
Mr. Gounder holds a Master with Distinction in International and Development Economics from the Australian National niversity, a Post Graduate Diploma in Economics and a Bachelor of Arts Degree in Economics & Accounting from the niversity of the South Pacific.

Ms Kalpana Lal - Director Chairperson of the Board Audit and Risk Committee and a member of the Board Investment Committee.
She has extensive experience in financial reporting, management of procurement processes & other related functions, the review and compliance of financing contracts, consultancies and local subsidiaries.

Ms. Lal is a Fellow of CPA Australia and a professional member of Australian Institute of Company Directors, Fiji Institute of Accountants and the Association of Certified Fraud Examiners.
She holds a Master in Business Administration with Distinction from Deakin niversity, Australia, CPA from CPA Australia, Bachelor of Arts Degree from the niversity of the South Pacific in Accounting, Financial Management and Information Systems and is a graduate of Fiji Directors Course with AICD.

40 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .
f j Executive Team Mr Viliame Vodonaivalu Mr Pravinesh Singh Mr Tevita Lomalagi Mr Rukshan Rajapaksha Chief Executive Officer Chief Operating Officer Chief Financial Officer Chief Information Officer Master in Applied Finance (niversity of Melbourne, Aust) Post Grad Diploma in Accounting & Finance (Victoria niversity of Technology, Aust) Bachelor of Arts (Accounting & Info Systems)(SP, Fiji) Diploma in Applied Statistics & Data Processing (USP, Fiji) Certified Treasury Professional (Australian Finance & Treasury Professional) Post Grad Diploma in Commerce (USP, Fiji) Bachelor of Arts (Accounting, Financial Management & Economics)(USP, Fiji) Member, FIA (Chartered Accountant) Member, FIA Council Member, CPA Australia Bachelor of Arts (Accounting Economics)(USP, Fiji) Member, FIA (Chartered Accountant) Member, CPA Australia Master of Science (niversity of Keel, UK) Professional Graduate Diploma (British Computer Society, ) Member, Chartered Member of British Computer Society () PRINCE2 Certified Project Manager.
ITIL Certified Service Management Ms Millie low Mr Alipate Waqairawai Mr day Singh Mr Ravinesh Krishna General Manager Business Transformation General Manager Member Services Master in Public Policy (Victoria niversity of Wellington, NZ) Bachelor of Arts (Business Studies Accounting)(USP, Fiji ) Bachelor of Business (Banking & Finance - Victoria niversity of Technology, Aust) General Manager Corporate Governance Master of Development Economics (Dalhousie niversity, Canada) Bachelor of Arts (Economics and Management)(USP, Fiji) Certificate in uality Management (niversity of Hawaii, SA) Member, Australian Institute of Company Directors Genral Manager Human Resources Master in Business Administration (USP, Fiji) Bachelor of Arts (SP, Fiji) Graduate Cert in Management (niversity of the Sunshine Coast, Aust) Certificate IV Training & Workplace Assessment (TAFE Western Sydney, Aust) Member, Australian Human Resources Institute F I J I N AT I O N A L P R O V I D E N T F U N D 41 w w w. m y f n p f .
c o m .

f j Our People As a social security provider, in a challenging operating environment, the quality of our people and culture is crucial to the Fund’s success.

The Fund’s people have always been an integral part of this success and therefore, strengthening a positive and engaging employee experience, remains a management priority.

The Fund has seen an increased collaboration, innovation and performance of our people, as measured by the Fund’s Employee Engagement Survey.
Improving from a rating of 3.84 in 2018 to 3.95 (+0.11) is remarkable given the demanding environment the Fund’s people were placed in 2021.

As well as investing in our people’s skills, the Fund has created an enabling and supportive environment for our human assets.

A key milestone for the year was the delivery of key policies that allowed the Fund to quickly adapt to the new normal that has been imposed by the COVID-19 crisis.
A number of lessons were learnt from the aftermath of the first COVID-19 wave in March 2020 and the potential of a second wave of infections.

Based on these assumptions, the Fund placed emphasis on policy and strategy implementation and staff engagement to mitigate risks.

These significantly cushioned the impact of the pandemic on our staff and essentially our service delivery to members.
The escalating number of COVID-19 infections from April 2021 presented challenges to staff who were in constant contact with members.

Regardless of the threat the virus imposed on staff and their families, the Fund continues to deploy solutions and manpower where needed to ensure services to affected members continued unabated.
Milestones ey achievements regarding staff wefare and activities were as follows: implementation of the remote work policy enabling the Fund to ease in transition into remote workwork from home during the second wave of COVID-19; implementation of the succession planning framework to prepare the future leaders of the Fund; rollout of the security policy; increased staff engagement on percipio (online learning platform) from 1,352 in 2020 to 2,187 in 2021 (61.7); rollout of counselling services for staff.
This was initially rolled out by seasoned experts and aimed at helping staff manage stressors posed by COVID-19 and other social issues; Health & wellness activities were implemented in the Fund and included: i) online Zumba, ii) online yoga, iii) corporate walks, iv) health checks v) CHIP programme which graduated 20 staff who lost on average kg over a month; charitable drives in partnership with relevant development agencies.
This included donations to i) WOW’s Kids Fiji, iii) Movember Drive and iv) Gift a id a Shoe ii) TC Yasa Relief, advocacy initiatives were introduced for issues like i) Prostate Cancer, iii) Breast Cancer and ii) Violence Against Women, iv) Cancer in Children support provided for staff during the second wave of COVID-19 infections.

42 F I J I N AT I O N A L P R O V I D E N T F U N D w w w. m y f n p f .

c o m .
c o m .

f j The Fund’s People At the end of June 2021, the Fund had a total of 387 staff.

A detailed summary of the staff welfare trends is reflected in table 3.
Table 3: Summary of staff welfare trends 2019 – 2021 ITEM 2019 2020 2021 Staff Numbers 466 398 387 73 51 12 78 11 15 Recruits Exits Labour Turnover (LTO) (all staff) Labour Turnover (permanent staff) Employment Relation (ER) Cases Years of Service (YOS) (avg) Age (avg) Occupational Health & Safety incidents Training Activities (Face to Face) 21 8 36 10 88 14 9 37 3 25 34 10 38 2 48 Training Cost Percipio Cost $697K $270K $48K $100K $100K $80K Percipio take up 61% Courses Completed (Percipio) 952 71% 1352 74% 2187 10.87% 16.32% 3.81% 61.7; reduction of OHS incidents.
5.5% 2.5% 3.5% The implementation of key staff welfare activities has resulted in the following: reduction in LTO by 77; increased ER cases by 20 means leaders are actively monitoring their staff; increase in the YOS for staff by 11 reinforces staff belief in the work the Fund does for its members; absorption of in-house talent into management and executive positions respectively; increased uptake of Percipio by 1.8; increase in the completion of Percipio material by ey Activities The Fund plans to roll out the following initiatives the next year development of a disruption framework that would encompass measures to be followed during a disruption event (pandemics, epidemics, natural disasters etc.
); review human resource processes to ensure its relevance dictated by changing environments and business needs; robust learning and development programmes; continuation of the Fund’s succession planning programme to ensure talent are managed appropriately and leadership skills continue to be developed and sustained; continuation of containment efforts in ensuring the Fund continues to curb, control and manage COVID-19.
Looking Ahead With learnings from the pandemic, the Fund will ensure that its people are ready and equipped: 1. to complement efforts for economic recovery; 2. to continue supporting members during this crisis; and 3. to adapt and to conform the Fund’s business to this reality.

The Fund will need to work closely with our people and business leaders to ensure that it continues to drive its core mission, with a member centric focus and resilient leadership direction.
F I J I N AT I O N A L P R O V I D E N T F U N D 43 f e i h C t n e m t s e v n I r e c ﬁ f O t n a c a V w w w. m y f n p f .

c o m .
& 44 AT / & & e
- l o C , n o i t u b i r t n o C r e g a n a M e c n a i l p m o C , n o i t c e l l u v e e n o G i n e P , e s i r p r e t n E r e g a n a M t r o p p u S & & g n i n r a e L r e g a n a M t n e m p o l e v e D & ON A L P R O V I D EN T F U N D Financial Statements 30 June 2021 Contents Board members’ report Statement by board members 46 – 49 50 Independent auditor’s report to the members of Fiji National Provident Fund 51 – 54 Income statement Statement of net assets available for benefits Statement of changes in member benefits Statement of changes in reserves Income statements by Fund Statements of net assets available for benefits by Fund Statement of cash flows Notes to and forming part of the financial statements 55 6 7 58 59 60-61 62 63 114 F I J I N AT I O N A L P R O V I D E N T F U N D 45 Fiji National Provident Fund Board Members’ Report For the year ended 30 June 2021 The Board members present their report together with the financial statements of Fiji National Provident Fund (the Fund) for the year ended 30 une 2021 and report as follows: Board Members The Board members of the Fund during the year and
 up to the date of this report were: Mr. Daksesh Patel (Chairman) Mr. Mukhtar Ali Mr. Sanjay Kaba Ms. Makereta onrote (Resigned 1 March 2021) Ms. Kalpana Lal Mr. oel Abraham Mr. Shiri Gounder (Appointed 16 March 2021) Operation of the Fund The Fund is a defined contribution fund and the operation of the Fund has been carried out in accordance with the provisions of the Fiji National Provident Fund Act 2011.
Principal Activities The principal activity of the Fund during the financial year was the provision of superannuation services to its members.

Going concern and impact of COVID-19 The Fund has prepared an assessment of its ability to continue as a going concern, taking into account all available information for a period of 12 months from the date of issuing the financial statements.
The continued impact of the COVID-19 pandemic has resulted in the Fund’s operations experiencing challenging and uncertain times with the second wave of COVID-19 creating further uncertainty.

Whilst the situation is evolving, the Fund remains confident that it will be able to continue as a going concern which assumes the Fund will be able to continue operating and realise assets and discharge liabilities in the ordinary course of business for the foreseeable future.
In reaching this position, the following factors have been considered: The Fund has cash of 96.3 million as at 30 une 2021 and has adequate levels of liquidity through term deposits held with local banks of 21.

 million of which 98 or 210.

 million is maturing within 12 months.


 The Fund’s exposure where the potential credit risk is more severe including hospitality and accommodation, tourism, transport and telecommunication is approximately 19 of the financial assets base as disclosed in note 3.1(b) under the heading Concentration of credit exposure.
The Fund has prepared for several scenarios assuming the COVID-19 pandemic continues for the next 6 and 12 months, stress testing operating cash flows and in all cases the Fund expects to remain sufficiently liquid and solvent.

 The outcome of all of the above leads the Fund to determine that the Fund’s financial position is strong, and it will be able to meet its debts as and when they fall due for at least a period of 12 months from the date of the financial statements.
The financial statements have therefore been prepared on a going concern basis.

Operating Results The net surplus attributable for allocation for the year ended 30 une 2021 was 496,2,000 (2020: 320,440,000).

Reserves The Board approved the allocation of net surplus to member’s accounts from the Fund’s income statement as annual interest at a rate of .00 (2020:.00).
46 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Board Members’ Report (continued) For the year ended 30 June 2021 Bad and Doubtful debts The Board members took reasonable steps before the Fund’s financial statements were made out to ascertain that all known bad debts were written off and adequate provision was made for doubtful debts.
At the date of this report, the Board members are not aware of any circumstances which would render the amount written off for bad debts, or the amount of the provision for doubtful debts, inadequate to any substantial extent.

Significant events during the year (i) The unprecedented uncertainty in the economic environment continued in FY2021 and the second wave of pandemic from April 2021 has caused further uncertainty in the Fijian economy.
Actual economic events and conditions in future may be materially different from those estimated by the Fund at the reporting date.

In the event the COVID-19 pandemic impacts are more severe or prolonged than anticipated, this may have further adverse impacts to the fair value of the Fund’s portfolio and a future price achieved if the assets are to be realised.
At the date of the annual report, an estimate of the future effects of the COVID-19 pandemic on the Fund’s portfolio cannot be made, as the impact will depend on the magnitude and duration of the economic downturn, with the full range of possible effects unknown.
Further considerations in relation to the COVID-19 pandemic are included in the going concern disclosure on above and expected credit losses, equity investments and properties valuations in notes 3.1(b), 14 and1 to the financial statements respectively.

(ii) During the year, the Fund disposed its total equity interest of 20 in Energy Fiji Limited, which was acquired in April 2020, to Sevens Pacific Pte Limited.
The Government has also disposed 24 of its 7 of the shares in Energy Fiji Limited.

(iii) The Fiji Government, in collaboration with the Fund and in response to the COVID-19 pandemic, allowed members to access their General account held with the Fund.

The members were eligible to withdraw through Phase 2, phase 3, phase 4, Voluntary member assistance, SME & Taxis and lockdown assistance during the second wave of the pandemic.
The total payments for various COVID-19 assistance at reporting date amounted to 99,644,000.

(iv) Further assistance was provided to members in the form of housing mortgage relief.

Members who were facing difficulties in making repayments were provided assistance.

A total of 04 members have been assisted as of reporting date amounting to ,310,273.
(v) FNPF exercised its rights to participate in the Amalgamated Telecom Holdings Limited (ATH) Share Rights Issue during the year.

FNPF invested a total of 86 million in two separate approval tranches in uly 2020 and between May to une 2021.
F I J I N AT I O N A L P R O V I D E N T F U N D 47 Fiji National Provident Fund Board Members’ Report (continued) For the year ended 30 June 2021 Events Subsequent to the Balance Date (a) COVID-19 Pandemic The unprecedented uncertainty in the economic environment continues post year end and it is difficult to predict what the eventual impact it may have on the Fund.

Actual economic events and conditions in future may be materially different from those estimated by the Fund at the reporting date.
In the event the COVID-19 pandemic impacts are more severe or prolonged than anticipated, this may have further adverse impacts to the fair value of the Fund’s investment portfolio of properties and equities and of future prices achieved if the assets are to be realised.
It may also adversely impact the level of expected credit losses attaching to loans and advances, receivables and government securities and fixed interest securities and their final realised positions, as the counterparties will all experience their own impacts of COVID-19 on their business activities and cash flows.
At the date of the release of the financial statements an estimate of the future effects of the COVID-19 pandemic on the Fund’s portfolio cannot be made, as the impact will depend on the magnitude and duration of the economic downturn, with the full range of possible effects unknown.

The financial statements, however, reflect the best estimates of the Fund’s Board and management based on the information available at the time of preparation.
Future changes in valuations, realised values and expected or actual credit losses are non-adjusting events at 30 une 2021 and will impact on the value of net assets available for members’ benefit and on the income statement in future periods.

The Fund will continue to assess the impact of COVID-19 and take relevant measures to respond to the evolving environment.
Further considerations in relation to the COVID-19 pandemic impact on equity valuations, investment properties valuations and expected credit losses at balance date and in future periods are included in the respective notes in the financial statements.

(b) Assistance to members The final rounds of phases 2 and 3 were completed in uly 2021 bringing to closure the partnership with Government subsidied COVID-19 assistance to affected members.
The final date of phase 2 and 3 payment is 6th uly 2021.

A total of 88,762,003 was paid out from member’s general account and 172,276,642 from Government top up towards unemployment benefits of affected members during the financial year.

(c) The Government in its 20212022 national budget announced the continuation of the COVID-19 assistance.
This includes payments to members who have been unemployed or on leave without pay from October 2019, members whose wage rate and hours has been reduced and members who have been unemployed from anuary 2010 to September 2019 and still unemployed.

As at 19th September 2021, a total of 10,289,000 has been paid as unemployment assistance.
(d) Amalgamated Telecom Holdings Limited’s (ATH) Share Rights Issue FNPF exercised its rights to subscribe to ATH’s Share Rights Issue and acquired a total of 20,000,000 new shares at the share rights issue price of 2.00 amounting to 40,000,000.

The shares were registered to FNPF in uly 2021, whereby, FNPF would hold an equity interest in ATH of 72.7.
(e) Vodafone Fiji Limited additional loan During the year, the FNPF Board approved an additional loan of 60 million to Vodafone.

As of 30 une 2021, the terms and conditions of the loan were under negotiation.

VFL accepted the loan offer on 16th uly 2021, legal documentation executed with first drawdown of 30 million made on 10th August 2021 while second drawdown of 20 million made on 20th August 2021.
Apart from the matters noted above, there has not arisen in the interval between the end of the financial year and the date of this report, any transactions or event of a material and unusual nature likely, in the opinion of the Board members, to affect significantly the operations of the Fund, the results of those operations or the state of affairs of the Fund.
Basis of preparation The financial statements of the Fund have been drawn up in accordance with International Financial Reporting Standards and the requirements of the Fiji National Provident Fund Act 2011.

Related party transactions In the opinion of the Board members all related party transactions have been recorded in the books of the Fund and adequately disclosed in the attached financial statement.
48 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Board Members’ Report (continued) For the year ended 30 June 2021 Other circumstances At the date of this report, the Board members are not aware of any circumstances not otherwise dealt with in this report or financial statements which render any amounts stated in the financial statements misleading.
Unusual transactions The results of the Fund’s operations during the financial year have not in the opinion of the Board members been substantially affected by any item, transaction or event of a material and unusual nature other than those disclosed in the financial statements.
Actuary’s certification The Fund’s Actuary has signed off on the liabilities and solvency of the RIF and SDBF and that interest credited to FNPF members will not place undue stress on the solvency of the FNPF on the basis of the valuation of assets undertaken at reporting date.
Board members’ interest No Board member of the Fund has, since the end of the previous 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 Board members as shown in the Fund’s financial statement) by reason of a contract made by the Fund or related corporation with the Board member or with a firm of which he she is a member, or with an entity in which heshe has a substantial financial interest.
Dated at Suva this 30th day of September, 2021.
Signed in accordance with a resolution of the Board: ...................................................................................... ....................................................................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ....................................................................................................................................... ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. Chairperson Chairperson Chairperson Chairperson Chairperson Chairperson Chairperson
 .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... irector Director irector irector DDirector F I J I N AT I O N A L P R O V I D E N T F U N D 49 Fiji National Provident Fund Statement by Board Members For the year ended 30 June 2021 In the opinion of the Board members: (a) The accompanying income statement is drawn up so as to give a true and fair view of the results of the Fund for the year ended 30 une 2021; (b) The accompanying
 statement of net assets available for benefits is drawn up so as to give a true and fair view of the state of the affairs of the Fund at 30 une 2021; (c) The accompanying statement of changes in member benefits is drawn up so as to give a true and fair view of movement in member benefits of the Fund for the year ended 30 une 2021; (d) The accompanying statement of changes in reserves is drawn up so as to give a true and fair view of movement in reserves of the Fund at 30 une 2021; (e) The accompanying statement of cash flows is drawn up so as to give a true and fair view of the cash flows of the Fund for the year ended 30 une 2021; (f) At the date of this statement there are reasonable grounds to believe that the Fund will be able to pay their debts as and when they fall due; (g) All related party transactions have been recorded and adequately disclosed in the financial statement in accordance with IAS 24; and (h) The financial statement and notes are in accordance with the Fiji National Provident Fund Act 2011.
Dated at Suva this 30th day of September, 2021.
Signed in accordance with a resolution of the Board: ....................................................................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ....................................................................................................................................... ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. Chairperson Chairperson Chairperson Chairperson
 Chairperson Chairperson Chairperson Chairperson .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... irector Director irector irector irector DDirector 50 F I J I N AT I O N A L P R O V I D E N T F U N D Independent Auditor’s Report t e M s o f F i N l P t F t o t a t o f t f l s f t e F Opinion , t
, a , s o t s t l P d t e s t F e i (the ‘Fund’) t a f n e s s s i n r , i s s a g a s y o f g f 2 f c , , c e w e f m o f t s i h I l p r b l F , l o f t r o e F , t s a e a t 3 a 0 J s i r S Basis for Opinion c o s u r a r t t i a s s a Audit of the Financial Statements s n o w f f o I r d r r .
l S t i s o r Auditor’s Responsibilities for the g ( .

O A b r o r o t t t a t e w h o d i s s t a a t p e a b s Independence a t a s S i r t o f t f r a r A F t o s B t t o o a s i Emphasis of Matter i h t e w n a l l r o untant’s Code of Ethics for Professional Accountants (IESBA Code) f t l d w w s i s a e h C F d t e f t , a e I e I e e s o .
-f l a l a t f s a c l a o c e f s e d 1 a g a f c s a d 3 ( ) w d u l a d i r e t p .

T u d u l s s i , -1 r e 9 a d i .

 properties within the next financial year.

In our judgement, this issue is fundamental to the users’ r s f g a s e s a y d f f a f a n a d p e a o t k o s t , t f t .
.

T e e r a 4 , s o t a f t l PricewaterhouseCoopers, Level 8 Civic Tower, 272 Victoria Parade, Suva, Fiji.

GPO Box 200, Suva, Fiji.

T: (679)3313955 / 3315199, F: (679) 3300947 PricewaterhouseCoopers is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
F I J I N AT I O N A L P R O V I D E N T F U N D 51 , , t h n c o m t a t e m e n t s b u n d , .
Other information not include the financial statements and our auditor’s report the r e .

.

T 3 J o r i 2 ( , i e f d s t o b e m y m .

.
.

s s o l s , c r o r k , , o s r y , b e w n t d o e of this auditor’s report, we conclude that there is a material misstatement of this other information, r e h e r e p o r d p g t k w s r r i r t , .
W t t n f o e d o r s Responsibilities of Board Members’ and Management for the Financial Statements Fund’ , w e p f r t l F , , t e a c e t F c m s a , d b o r t s o c f a o , a s a u s t , o r h r , Fund’s f l r Auditor’s Responsibilities for the Audit of the Financial Statements r s a e t o o r o free from material misstatement, whether due to fraud or error, and to issue an auditor’s report h t i t a l o s d .
, b f a l a l s a i a a t d i s c t e .
M n t b s o , , i s o f u t w y o s t r i 52 F I J I N AT ) .
• I • O • E • .

W , w a e : p l j t a m d o y a r e e t a d a , d t i s s s t e r a m y i l m c s o f m d p t a a t r d a , f l m t p , , m , w , a .
T , o d o e r g f r t r d e t a k o f n e o n o t t , e g o f i e c e i t e Fund’s i s o f t l r , , b s o e board members’ a a s t n t o y t y e o c s o n b l ’s e l e based on the audit evidence obtained up to the date of our auditor’s report.
However, future events required to draw attention in our auditor’s report to the related d s a g a e g c , w t d s i r c t o y e y c t a r c .

I s a g F , w t m t e f d t s a y o s o t e r o , i , t .

O f s t s f w l u t o m d i m a m c m t ’ • E t e o , a l p , s d w r t e f l s s r s t u , .
, a , i o r m g a y s , , ; a n t , t t b t o f o r k a d b , b n g a l i , e s a a n y f r t e c t o f h e a F I J I N AT I O N A L P R O V I D E N T F U N D 53 .
; a ) ) .
.

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .

O .
Fund’s members, a e Fund’s members , a , a , a , a , a , a , a , a , a , a , a , a , a , a , a , a , a , a Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members a Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members Fund’s members , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d , w e d s a b
e d , w e d , w e d , w e d , w e d , , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , , i , i , i , i , i , i , i , i , i , i , i , i , i , i , i , i , i , i , w
Fund’s Fund’s Fund’s Fund’s Fund’s e Fund’ auditor’s report and for no other n auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other auditor’s report and for no other o
, o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , o r f , , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , f , s
T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .

T .
, F , F , F , F , 54 F I J I N AT t
u
e
s
e
s
h
l
Fiji National Provident Fund Income Statement For the year ended 30 June 2021 Income Interest Dividend Property rental Change in fair value of equity investments Foreign exchange gains Other income Reversal of impairment of assets held at amortied cost Total income Less: Impairment on mortgaged loans Impairment of assets held at amortied cost Foreign exchange losses Change in fair value of investment properties Change in fair value of equity investments Net income Expenses Investment expenses Property expenses Interest expenses General administration expenses Depreciation and amortiation Net impairment of contribution receivable Total expenses Net increase in net assets available for allocation Other comprehensive income Items that may be reclassified subsequently to income statement Net increase in net assets available for allocation Net increase in net assets allocated to: Members’ accounts Funds Total Notes 2021 $000 2020 $000 6(a) 6(b) 7(a) 7(b) 8 7(b) 15 7(a) 9 19 27 331,31 71,023 19,007 167,64 - 1,979 1,17 592,063 18,611 24 9,31 20,72 - 542,924 5,508 8,266 21 2,787 3,436 3,34 46,372 323,638 78,747 19,74 - 806 1,396 284 424,445 40,340 7 - 2,676 11,628 369,794 7,33
 7,869 19 26,737 3,641 3,73 49,354 496,552 320,440 - 496,552 - 320,440 302,769 193,783 496,552 293,97 26,483 320,440 The income statement is to be read in conjunction with the notes to and forming part of the financial statements F I J I N AT I O N A L P R O V I D E N T F U N D 55 Fiji National Provident Fund tatement of net assets available for benefits As at 30 June 2021 Assets Cash and cash equivalents Cash and cash equivalents Receivables Investment income receivable Other receivables Investments Term deposits Government securities Other fixed interest securities Loans and advances Equity investments Investment properties Other assets Property, plant and equipment Right of use assets Intangible assets Total assets Liabilities Other payables and accruals Lease liability Employee entitlements Total liabilities (excluding net assets available to pay benefits) Net assets available for member benefits and reserves Comprising: Member benefits Allocated to members Unallocated to members Total member benefits Reserves Investment reserve Solvency reserve Total reserves Total Funds Notes 2021 $000 2020 $000 16 20 19 23(a) 17 21 23(b) These financial statements have been approved in accordance with a resolution of the Board of Directors.
For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board For and on behalf of the Board ....................................................................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ....................................................................................................................................... .................................................
 ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. Chairperson Chairperson Chairperson Chairperson Chairperson Chairperson Chairperson Chairperson .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... .......................................................................................................................... ..........................................................................................................................
 irector Director irector irector irector DDirector 56 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund tatement of changes in member benefits As at 30 June 2021 Balance at 1 July Contributions: Employers Members Total contribution Benefit payments to members Pension payments to pensioners Benefits allocated to members’ account, comprising: Interest to members Current year investment returns - SDB - RIF Transfer to solvency reserve - SDB - RIF Transfer from(to) general reserve Closing balance of members’ benefits Notes 2021 $000 2020 $000 6,545,918 6,107,338 160,645 160,645 321,290 (00,81) (2,281) 328,68 262,84 591,422 (438,973) (29,339) 26(a)(ii) 24(e) 24(e) 26(a)(iii) 302,769 293,97 27 27 26(c) 26(b) 3,363 26,70 (7,122) 8,847 (11,471) 6,664,248 3,134 26,616 (7,091) (1,171) 2 6,545,918 The statement of changes in member benefits is to be read in conjunction with the notes to and forming part of the financial statements.
F I J I N AT I O N A L P R O V I D E N T F U N D 57 Fiji National Provident Fund Statement of changes in reserves As at 30 June 2021 Balance at 1 July 2019 Net transfers tofrom member benefitsreserves - FNPF - SDB - RIF Net current year investment returns Transfer to member liability Balance at 30 June 2020 Net transfers tofrom member benefitsreserves - FNPF - SDB - RIF Net current year investment returns Transfer from member liability Balance at 30 June 2021 Investment Reserve Solvency reserve $000 629,668 (43,201) - - (3,267) (11) 583,189 (9,07) - - 163,670 11,471 748,823 Total $000 $000 705,395 1,335,063 43,201 7,091 1,171 - - - 7,091 1,171 (3,267) (11) 756,858 1,340,047 9,07 7,122 (8,847) - - - 7,122 (8,847) 163,670 11,471 764,640 1,513,463 The statement of changes in reserves are to be read in conjunction with the notes to and forming part of the financial statements.
58 F I J I N AT I O N A L P R O V I D E N T F U N D 0 2 0 2 0 0 0 $ 1 2 0 2 0 0 0 $ 0 2 0 2 0 0 0 $ 1 2 0 2 0 0 0 $ 0 2 0 2 0 0 0 $ 1 2 0 2 0 0 0 $ 0 2 0 2 0 0 0 $ 1 2 0 2 0 0 0 $ l a t o T n t n I ) ” F R “ ( , 8 3 6 3 2 3 1 3 1 3 3 , 1 4 1 3 , 9 7 3 3 , 0 8 6 2 , 1 6 2 7 2 , 7 4 6 3 9 2 , 7 6 0 0 3 , 7 4 7 8 7 , 4 7 9 1 , - 6 0 8 6 9 3 1 , 4 8 2 3 2 0 1 7 , 7 0 0 9 1 , 4 6 7 6 1 , - 9 7 9 1 , 7 1 1 , - - - - - - 5 4 4 4 2 4 , , 3 6 0 2 9 5 1 4 1 3 , - - - - - - - - - - - - - - - ) 0 1 ( 9 6 3 3 , 6 0 1 6 5 9 6 2 , ) 9 9 1 ( 2 6 0 7 2 , - 7 0 4 3 0 4 , 6 7 6 2 , 8 2 6 1 1 , - 4 2 1 1 6 8 1 , 1 3 9 , 2 7 0 2 , 7 - - - - 6 - - - - - - - - - - - - - 1 1 7 4 7 8 7 , 4 7 9 1 , - 6 0 8 8 7 1 6 9 3 1 , 3 2 0 1 7 , 7 0 0 9 1 , 4 6 7 6 1 , - 9 7 9 1 , 4 8 3 1 , 8 4 3 4 9 3 , 2 3 6 1 6 5 , - 0 4 3 0 4 , - 6 7 6 2 , 8 2 6 1 1 , - 8 2 2 1 1 6 8 1 , 1 3 9 , 2 7 0 2 , , 4 9 7 9 6 3 4 2 9 2 4 5 , 4 3 1 3 , 3 6 3 3 , 6 5 9 6 2 , 1 5 0 7 2 , 4 0 7 9 3 3 , 0 1 5 2 1 5 , 9 1 3 3 7 , 9 6 8 7 , 1 4 6 3 , 3 7 3 , 7 3 7 6 2 , 1 2 8 0 5 5 , 6 6 2 8 , 6 3 4 3 , 4 3 3 , 7 8 7 2 , 4 5 3 9 4 , 2 7 3 6 4 , - - - - - - - - - - - - - - - - - 2 - 8 3 3 0 4 3 - - - - - 1 0 3 1 0 3 0 4 4 0 2 3 , , 2 5 5 6 9 4 4 3 1 3 , 3 6 3 3 , 6 1 6 6 2 , 0 5 7 6 2 , 9 1 3 3 7 , 9 6 8 7 , 9 3 6 3 , 3 7 3 , 9 9 3 6 2 , 1 2 8 0 5 5 , 6 6 2 8 , 6 3 4 3 , 4 3 3 , 6 8 4 2 , 4 1 0 9 4 , 0 9 6 0 9 2 , 1 7 0 6 4 , 9 3 4 6 6 4 , 3 8 4 6 2 , 7 9 3 9 2 , 9 6 7 2 0 3 , 3 8 7 3 9 1 , 0 4 4 0 2 3 , 2 5 5 6 9 4 , - 4 3 1 3 , 4 3 1 3 , - 3 6 3 3 , 3 6 3 3 , - 6 1 6 6 2 , 6 1 6 6 2 , - 0 7 6 2 , 0 5 7 6 2 , ) 7 6 2 3 ( , 7 9 3 9 2 , 0 9 6 0 9 2 , 9 6 7 2 0 3
 , 0 7 6 3 6 1 , 9 3 4 6 6 4 , : AT I O N A L P R O V I D E N T F U N D s t n u o c c a ’ s r e b m e M : o t d e t a c o l l A s d n u F l a t o T 59 .
fi , .
, 7 7 7 5 6 2 3 , , 7 5 0 5 4 2 4 , 3 4 5 7 9 1 , 3 3 1 1 7 6 , , 5 6 2 9 7 , 4 9 3 6 5 , 8 1 7 7 7 1 1 , , 7 8 8 5 9 6 5 , , 2 1 5 5 3 , 1 0 3 4 , 9 3 7 , 1 1 1 6 2 , 3 7 7 2 1 , 1 0 3 4 , 9 3 0 2 , 2 7 3 8 1 3 9 1 3 9 - - 1 9 0 , 7 6 2 8 , 8 4 4 9 1 9 0 , 7 6 2 8 , 8 4 4 9 - - - - - - , 2 9 3 2 0 , 1 0 3 4 , 9 3 7 , 1 8 9 2 9 , 4 6 3 6 0 , 1 0 3 4 , 9 3 0 2 , 3 6 0 2 4 , 7 7 9 7 1 7 6 , , 7 5 4 3 1 4 5 , , 6 3 9 4 3 3 1 , 1 4 2 4 8 , 8 3 9 6 2 4 9 , 1 1 5 8 9 4 3 0 7 1 4 , 9 7 4 4 1 3 , 4 3 8 1 0 7 , 8 8 9 3 3 7 , , 2 2 2 3 1 , , 2 2 2 1 8 3 4 , , 3 1 2 4 1 1 3 , , 2 9 8 7 4 9 7 , , 5 5 9 1 8 1 2 3 8 8 2 , 3 4 5 9 3 0 , 3 3 1 3 6 6 , , 6 3 9 2 5 , 5 7 8 1 4 - - 4 6 - - - - - - 4 7 - - - - - - - - - - - - - - - - - - 3 1 3 2 1 7 , 3 2 1 2 2 8 , , 8 3 6 9 , 3 3 7 , 8 2 0 7 0 3 1 , , 7 9 3 2 3 2 5 , , 6 3 9 4 3 3 1 , 1 4 2 9 4 , 8 3 9 6 2 4 9 , 1 1 6 3 6 4 3 0 7 1 4 , 9 7 4 4 1 3 , 4 3 8 1 0 7 , , 8 8 9 3 3 7 , 2 2 2 3 1 , , 2 2 2 1 8 3 4 , , 5 5 9 1 8 1 2 3 8 8 2 , , 3 4 9 6 9 9 , , 3 3 6 2 1 0 0 , 2 1 4 7 8 7 , 3 8 2 7 4 8 , , 8 5 9 8 8 , 9 9 2 4 0 1 3 2 4 0 6 , , 4 2 3 0 , 6 3 0 0 , 6 1 7 8 - - - - - - 2 1 4 7 8 7 , 3 8 2 7 4 8 , 8 1 1 9 2 4 7 2 1 9 1 5 1 0 6 4 6 4 , , 8 6 7 9 9 1 3 9 4 9 9 , , 4 3 0 7 1 5 6 5 4 9 9 , 3 0 4 7 0 , , 2 6 3 6 7 , 3 9 1 3 , 3 8 2 1 , 2 8 0 3 9 6 8 7 , 3 1 1 4 6 6 , $ 0 0 0 2 0 2 1 $ 0 0 0 2 0 2 0 $ 0 0 0 2 0 2 1 $ 0 0 0 2 0 2 0 $ 0 0 0 2 0 2 1 $ ( “ R F ” ) I n t n $ 0 0 0 2 0 2 1 T o t a l $ 0 0 0 2 0 2 0 60 F I J I N AT I O N A L P R O V I D E N T F U N D 0 2 0 2 0 0 0 $ l a t o T 1 2 0 2 0 0 0 $ , 4 8 8 9 2 6 , , 9 0 9 8 4 6 6 , 4 3 0 6 1 , 9 3 3 1 , , 8 1 9 5 4 5 6 , , 8 4 2 4 6 6 6 , 9 8 1 3 8 , 8
 8 6 7 , 3 2 8 8 4 7 , 0 4 6 4 6 7 , , 7 4 0 0 4 3 1 , , 3 6 4 3 1 5 1 , , 5 6 9 5 8 8 7 , , 1 1 7 7 7 1 8 , - 8 2 2 7 4 , 8 2 2 7 4 , - 0 3 4 , 0 5 3 4 5 , - 7 3 3 0 8 , 7 3 3 0 8 , - 0 9 4 1 7 , 0 9 4 1 7 , 5 6 3 9 4 , 7 9 2 6 5 , 6 7 1 1 3 3 , 1 9 7 5 4 3 , 9 8 1 3 8 , 3 9 2 9 2 6 , 3 2 8 8 4 7 , 0 0 8 8 3 6 , , 2 8 4 2 1 2 1 , , 3 2 6 7 8 3 1 , , 4 2 4 5 0 5 7 , , 3 2 6 5 7 7 7 , .
$ - 7 3 1 2 , 7 3 1 2 , 1 2 0 2 0 0 0 $ - 7 4 9 1 , 7 4 9 1 , 9 3 8 0 2 , , 1 0 3 4 7 2 , 4 0 9 7 2 6 , , 8 0 6 4 7 3 6 , - - 7 9 8 3 1 , 2 9 3 3 1 , , 9 3 8 0 5 2 1 0 3 4 7 2 , , 2 4 9 2 9 2 6 , , 0 0 0 8 8 3 6 , n t n I ) ” F R “ ( fi $ 1 2 0 2 0 0 0 $ 0 2 0 2 0 0 0 $ 1 2 0 2 0 0 0 $ AT I O N A L P R O V I D E N T F U N D 61 Fiji National Provident Fund tatement of cash os For the year ended 30 June 2021 Cash flows from operating activities Interest received Dividends received Property rentals received Other income received Payments to suppliers and employees Notes 2021 $000 308,22 61,961 18,714 1,979 (3,886) 2020 $000 318,72 1,26 17,216
 2,66 (41,916) Net cash generated from operating activities 3,020 348,144 Cash flows from investing activities Government securities matured( acquired) Other securities matured ( acquired) Loans and advances provided (repaid) Term deposits matured (invested) Deposit for ATH Share Rights Issue Equity investments (acquired)disposed Purchase of property, plant and equipment Acquisition of intangible assets Amount spent to acquiredevelop investment properties (133,844) 68,014 (7,711) 167,00 (40,000) 181,70 (3,923) (24) (13,39) (32,48) 73,341 (96,89) 59,416 - (291,673) (1,63) (164) (21,062) Net cash from(used in) investing activities 10,223 (631,139) Cash flows from financing activities Contributions received from employers Contributions received from members Withdrawal payments to members Payments for COVID-19 assistance Pension annuity paid to members Finance lease repayments Net cash(used in) from financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the financial year 18,366 160,645 (401,171) (99,644) (2,281) (729) 326,6 262,84 (382,989) (,817) (29,339) (132) (207,814 ) 121,142 297,429 298,828 (161,83) 460,681 Cash and cash equivalents at end of the financial year 28 596,257 298,828 The statement of cash flow is to be read in conjunction with the notes to and forming part of the financial statement.
62 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 1.

General information The Fiji National Provident Fund (the Fund) is a defined contribution superannuation fund domiciled in Fiji.

The address of the Fund’s registered office is at 33 Ellery Street, Suva.
The financial statements of the Fund as at and for the year ended 30 une 2021 comprise of three Funds set out below: (i) The FNPF’ a defined contribution superannuation scheme, including reserves for members benefits as yet unallocated; (ii) The Special Death Benefit Fund’ (SDBF) entitlement on payable on member’s death as per the FNPF Act 2011; (iii) The Retirement Income Fund’ (RIF) a fund which accepts retirement benefits from FNPF members in return for a commitment to pay life or term annuities.
The Fund is constituted by the Fiji National Provident Fund (FNPF) Act 2011 to provide superannuation benefits to employees in Fiji.

The FNPF including the SDBF and the RIF is considered a defined contribution plan as defined under IAS 19.

nder the FNPF Act, the liability of employers is limited to making contributions as defined in section 37 of the FNPF Act.

The Board of the FNPF is required under the Act to manage financial risk.
ey financial risks for the FNPF are investment risk and mortality risk.

However, even if there is extremely adverse investment performance (or mortality experience), the Board of the FNPF cannot seek any additional contributions from employers or other source which is consistent with the definition of a defined contributions plan as set out in IAS 19.

Therefore, investment risk (and mortality risk) is borne wholly by the FNPF membership.
Since these risks are borne wholly by the FNPF membership, the FNPF is considered a defined contribution plan for the financial reporting purpose of IAS 26.

According to the FNPF Act, the Actuary is required to provide advice to the Board on the annual crediting rate and the solvency position of the Fund.

The financial statements were authorised for issue by the Board of Members on 30 September 2021.

2.
2.

Summary of significant accounting policies The principal accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Statement of compliance The financial statements of the Fund are general purpose financial statements and have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) and the requirements of the Fiji National Provident Fund Act 2011.
The financial statements have been prepared under the historical cost convention, as modified by the fair valuing of investment properties and equity investments.

The financial statements of the Fund represent all the Fund’s investment and operation activities and accounts for all equity interests at fair value.
As per IAS 27, the Fund has prepared a separate financial statement to provide a more comprehensive and precise financial statement for its members in relation to the Fund’s activities and operations.

The consolidated financial statement are presented separately.

IFRSs form the basis of International Accounting Standards adopted by the IASB.
The preparation of financial statements in accordance with IFRS requires management to exercise its judgment in the process of applying the Fund’s accounting policies.

The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4.
Going concern and impact of COVID-19 The World Health Organisation declared a pandemic in relation to the Novel Coronavirus (COVID-19) in 2020, bringing a significant health impact globally.

Measures taken to contain the virus are already having a significant negative economic impact on global markets including Fiji’s major trading partners.

Economic activity in Fiji has been drastically impacted with business disruptions and levels of activity reduced in most sectors.
The Fiji tourism industry, in which the Fund has a significant stake hold, has been severely impacted.

In response to the economic impact of the COVID-19 outbreak, and in support of the initiatives identified by the Fiji Government, the Fund introduced an assistance program in 2020 and continued in 2021 whereby qualifying members could withdraw specified sums from their accounts.
At the year-end, this totaled to 99,644,000 (2020: ,817,000) have been paid to members from the general account.

There is considerable uncertainty around the possible duration of and the resulting depth of impact that may come from the disruption caused due to the fluidity of the situation.
The impact of the COVID-19 pandemic has resulted in the Fund’s operations experiencing challenging and uncertain times and it is uncertain what the impact may be on the Funds operating results and liquidity for the financial year.

Whilst the situation is evolving, the Fund remains confident that it will be able to continue as a going concern which assumes the Fund will be able to continue operating and realise assets and discharge liabilities in the ordinary course of business for the foreseeable future.
F I J I N AT I O N A L P R O V I D E N T F U N D 63 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2.
Summary of significant accounting policies (continued) Going concern and impact of COVID-19 (continued) In reaching this position, the following factors have been considered: - - - the Fund has cash of 96.3 million as at 30 une 2021 and has adequate levels of liquidity through term deposits held with local banks of 21.

 million of which 98 or 210.

 million maturing within 12months.


the Fund’s exposure where the potential credit risk is more severe including hospitality and accommodation, tourism, transport and telecommunication is approximately 19 of the financial assets base as disclosed in note 3.1(b) under the heading Concentration of credit exposure.

the Fund has prepared for several scenarios assuming the COVID-19 pandemic continues for next 6 and 12 months, stress testing operating cash flows.
These scenarios include the current commitments on COVID-19 related withdrawals and potential financial support it may need to provide to its investments in the tourism sector.

In all cases, the Fund remains sufficiently liquid and solvent.

The outcome of all of the above leads the Fund to determine that the Fund’s financial position is strong, and it will be able to meet its debts as and when they fall due for at least a period of 12 months from the date of the financial statements.
The financial statements have therefore been prepared on a going concern basis.

2.2 Changes in accounting policies and disclosures (a) Standards issued but not yet effective A number of new amended standard are effective for annual periods beginning after 1 uly 2020 and earlier applications is permitted; however, the Fund has not early adopted the new or amended standards in preparing the financial statements.
The following new and amended standards and interpretation are not expected to have a significant impact on the Funds financial statements.
Amendments to IAS 37 Onerous Contract Cost of Fulfilling a Contract Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended se; Annual Improvements to IFRS 2018-2020; Amendments to IFRS 3 Reference to Conceptual Framework: and Amendments to IAS 1 Classification of Liabilities as Current or Non-Current IFRS 17 Insurance Contract (b) standard issued and adopted A number of new standards, amendments to standards andor interpretations are effective for annual periods beginning on 1 uly 2020.
The following amendment was applicable to the Fund: Amendments to IFRS 16 COVID-19 Related Rent Concessions.

However, this did not have a material impact on the Fund.

(c) Changes in accounting policies The Fund has consistently applied the accounting policies to all periods presented in this financial statements.
2.3 Foreign currency translation (a) Functional and presentation currency The Fund operates principally in Fiji and hence the financial statements are presented in Fiji dollars, which is both the functional and presentation currency.

Amounts have been rounded to the nearest thousand dollars except where otherwise noted.

(b) Foreign currency transactions Transactions in foreign currencies are translated into the functional currency of the Fund at the exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date.

64 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2 Summary of significant accounting policies (continued) 2.4 Property, plant and equipment Freehold land is measured at cost.
Properties are measured at cost less depreciation except investment properties which are measured at fair value.

All plant and equipment is measured at historical cost less depreciation and impairment.

Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Fund and the cost of the item can be measured reliably.

The carrying amount of the replaced item is derecognised.

All other repairs and maintenance are charged to the expenses during the financial period in which they are incurred.

Freehold land is not depreciated.


Leasehold land is accounted for in accordance with note 2.11.
Depreciation of other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows: Leasehold land Buildings Plant and machinery Term of lease 40 80 years 4 17 years Vehicles Furniture, fittings and equipment Computer equipment and software 4 7 years 3 8 years 3 10 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each financial year end.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.7).

pon impairment, the revised carrying value of the asset is depreciated over the remaining estimated useful life of the asset.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the income statement.
2.5 Intangible assets Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.

These costs are amortised over their estimated useful lives (three to five years).

Costs associated with maintaining computer software programmes are recognised as an expense as incurred.
Costs that are directly associated with the development of identifiable and unique software products controlled by the Fund, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets.

Costs include the software development employee costs and an appropriate portion of relevant overheads.

Computer software development costs recognised as assets are amortised over their estimated useful lives (not exceeding three years).
2.6 Investment properties Investment properties, principally comprising freehold and leasehold land and buildings, are held for long-term rental yields and are not occupied by the Fund.

Investment property is measured initially at its cost, including related transaction costs.
After initial recognition, investment property is carried at fair value, determined by external independent valuers who have appropriate recognised professional qualification and recent experience in the location and category of property being valued.

Changes in fair values are recorded in the income statement.
Subsequent expenditure is charged to the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Fund and the cost of the item can be measured reliably.

All other repairs and maintenance costs are charged to the income statement during the financial period in which they are incurred.
Property that is being constructed for future use as investment property is accounted for as investment property until construction or development is complete, at which time it is re-measured to fair value.

Any gain or loss arising on re-measurement is recognised in the income statement.

All leases that meet the definition of investment property are classified as investment property and measured at fair value.
Investment property that is obtained through a lease is measured initially at the lease liability amount adjusted for any lease payments made at or before the commencement date (less any lease incentives received), any initial direct costs incurred by the Fund, and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.
F I J I N AT I O N A L P R O V I D E N T F U N D 65 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2.
Summary of significant accounting policies (continued) 2.6 Investment properties (continued) If a valuation obtained for a property held under a lease is net of all payments expected to be made, any related lease liability recognied separately in the statement of financial position is added back to arrive at the carrying value of the investment property for accounting purposes.
When the use of a property changes from owner-occupied to investment property, the property is re-measured to fair value and reclassified accordingly.

Any gain or loss arising on this remeasurement is recognised in the income statement.

2.7 Impairment of non-financial assets The carrying amounts of the Fund’s non-financial assets 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.
An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount.

The recoverable amount of an asset 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 impairment testing, assets 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.

Impairment losses are recognised in profit or loss.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
2.8 Financial instruments Financial assets (a) Recognition and initial measurement Receivables, loans and advances and debt investment securities are initially recognised when they are originated.

All other financial assets and financial liabilities are initially recognised when the Fund becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue.

A trade receivable without a significant financing component is initially measured at the transaction price.
(b) Classification On initial recognition, a financial asset is classified and measured at amortised cost or fair value through profit or loss (FVTPL).

Financial assets are not reclassified subsequent to their initial recognition unless the Fund changes its business model for managing financial assets in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as FVTPL: - - it is held within a business model whose objective is to hold assets to collect contractual cash flows; and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt investments are measured at amortised cost.


All financial assets not classified as measured at amortised cost as described above are measured at FVTPL.

On initial recognition, the Fund may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
66 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2 Summary of significant accounting policies (continued) 2.8 Financial instruments (continued) (b) Classification (continued) Business Model Assessment The Fund makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.
The information considered includes: the stated policies and objectives for the portfolio and the operation of those policies in practice.
These include whether - management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets; how the performance of the portfolio is evaluated and reported to the Fund’s management; the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; how managers of the business are compensated e.g.
whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

- - - - Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.
Financial assets are assessed whether contractual cash flows are solely payments of principal and interest.

For the purposes of this assessment, principal’ is defined as the fair value of the financial asset on initial recognition.

Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g.
liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Fund considers the contractual terms of the instrument.

This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition.
In making this assessment, the Fund considers: - - - - contingent events that would change the amount or timing of cash flows; terms that may adjust the contractual coupon rate, including variable rate features; prepayment and extension features; and terms that limit the Fund’s claim to cash flows from specified assets (e.g.

non recourse features).


A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract.

(c) Subsequent measurement and gains and losses i.


Financial assets at FVTPL These assets include equity investments that are subsequently measured at fair value through profit and loss.

Net gains and losses, including any interest or dividend income, are recognised in income statement.
Movement in fair value of equity investments are recognised as gain(loss) and are determined as the difference between the fair value at year end or consideration received (if sold during the year) and the fair value as at prior year end or cost (if the investment was acquired during the period).

ii.

Financial assets at amortised cost These assets are subsequently measured at amortised cost using the effective interest method.

The amortised cost is reduced by impairment losses.
Interest income, foreign exchange gains and losses and impairment are recognised in income statement.

Any gain or loss on derecognition is recognised in income statement.

F I J I N AT I O N A L P R O V I D E N T F U N D 67 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2.
Summary of significant accounting policies (continued) 2.8 Financial instruments – (continued) (d) Impairment The Fund recognises loss allowances for expected credit loss (ECLs) on financial assets measured at amortised cost and loan commitments issued.

The Fund measures loss allowances at an amount equal to lifetime ECL, except for the following, which are measured as 12 month ECL: - - other debt securities, loans and advances, term deposits and bank balances for which credit risk (i.e.
the risk of default occurring debt securities that are determined to have low credit risk at the reporting date; and over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for other receivables are always measured at an amount equal to lifetime ECL.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Fund considers reasonable and supportable information that is relevant and available without undue cost or effort.

This includes both quantitative and qualitative information and analysis, based on the Fund’s historical experience and informed credit assessment and including forward looking information.
The Fund assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Fund considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of investment grade’.

The Fund considers this to be BB or higher per rating agency Standard & Poors.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12 month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Fund is exposed to credit risk.

Measurement of ECLs ECLs are a probability weighted estimate of credit losses.
They are measured as follows: - - - financial assets that are not credit-impaired at the reporting date: as the present value of all cash shortfalls (i.e.
the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Fund expects to receive); financial assets that are credit-impaired at the reporting date: as the difference between the gross carrying amount and the present value of estimated future cash flows; and undrawn loan commitments: as the present value of the difference between the contractual cash flows that are due to the Fund if the commitment is drawn down and the cash flows that the Fund expects to receive.
The date the operation becomes a party to the irrecoverable loan commitment that is to be the date of initial recognition for the purposes of applying the impairment requirements.

ECLs consider the effective interest rate of the financial asset.
In practical terms the Fund applies Standard & Poors ratings to certain financial assets to determines the ECLs attributable to those financial assets, as detailed in note 3.1(b) 68 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2.
Summary of significant accounting policies (continued) 2.8 Financial instruments – (continued) (d) Impairment (continued) Credit-impaired financial assets At each reporting date, the Fund assesses whether financial assets carried at amortised cost are credit impaired.

A financial asset is credit impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit impaired includes the following observable data: - - - - - significant financial difficulty of the borrower or issuer; a breach of contract such as a default or being more than 30 days past due; the restructuring of a loan or advance by the Fund on terms that the Fund would not consider otherwise; it is probable that the borrower will enter bankruptcy or other financial reorganisation; or the disappearance of an active market for a security because of financial difficulties.
Presentation of allowance for ECL in the statement of net assets available for benefits Loss allowances for ECL are presented in the statement of net assets available for benefits as follows: - - financial assets measured at amortised cost: as a deduction from the gross carrying amount of the assets; loan commitments: generally, as a provision; - where a financial instrument includes both a drawn and an undrawn component, and the Fund cannot identify the ECL on the loan commitment component separately from those on the drawn component: the Fund presents a combined loss allowance for both components.
The combined amount is presented as a deduction from the gross carrying amount of the drawn component.

Any excess of the loss allowance over the gross amount of the drawn component is presented as a provision.

(e) Write-off The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery.
This is generally the case when the Fund determines that the party does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write off.

However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Fund’s procedures for recovery of amounts due.
(f) Derecognition The Fund derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Fund neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
The Fund enters into transactions whereby it transfers assets recognised in its statement of net assets available for benefits, but retains either all or substantially all of the risks and rewards of the transferred assets.

In these cases, the transferred assets are not derecognised.

(g) Modifications of financial assets If the terms of a financial asset are modified, the Fund evaluates whether the cash flows of the modified asset are substantially different.
If the cash flows are substantially different, then the contractual rights to cash flows from the original financial asset are deemed to have expired.

In this case, the original financial asset is derecognised and a new financial asset is recognised at fair value.

If the cash flows of the modified asset carried at amortised cost are not substantially different, then the modification does not result in derecognition of the financial asset.
In this case, the Fund recalculates the gross carrying amount of the financial asset and recognises the amount arising from adjusting the gross carrying amount as a modification gain or loss in income statement.

If such a modification is carried out because of financial difficulties of the borrower, then the gain or loss is presented together with impairment losses.

In other cases, it is presented as interest income.
If the terms of a financial asset were modified because of financial difficulties of the borrower and the asset was not derecognised, then impairment of the asset was measured using the pre-modification interest rate.

F I J I N AT I O N A L P R O V I D E N T F U N D 69 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2.
Summary of significant accounting policies (continued) 2.8 Financial instruments (continued) Financial liabilities (a) Classification, subsequent measurement and gains and losses Financial liabilities are classified as measured at amortised cost.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method.

Interest expense and foreign exchange gains and losses are recognised in income statement.
Any gain or loss on derecognition is also recognised in income statement.

(b) Derecognition The Fund derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Fund also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non cash assets transferred or liabilities assumed) is recognised in income statement.
Offsetting Financial assets and financial liabilities are offset and the net amount presented in the statement of net assets available for benefits when, and only when, the Fund currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

2.9 Receivables Receivables are carried at amortised cost less provision for impairment on the basis set out in note 2.8.
Receivables are categorised as being at amortised cost under financial assets.

2.10 Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits.

Cash and cash equivalents are categorised as amortised cost under financial assets.

2.11 Leases At inception of a contract, the Fund assesses whether a contract is, or contains, a lease.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

At inception or on reassessment of a contract that contains a lease component, the Fund allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

i.

As a lessee The Fund recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment.

In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Fund and the Fund’s incremental borrowing rate.

Generally, the Fund uses its incremental borrowing rate as the discount rate.
70 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2 Summary of significant accounting policies (continued) 2.11 Leases (continued) i.
As a lessee (continued) Lease payments included in the measurement of the lease liability comprise the following: - - - fixed payments, including in-substance fixed payments; variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; and the exercise price under a purchase option that the Fund is reasonably certain to exercise, lease payments in an optional renewal period if the Fund is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Fund is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method.

It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Fund’s estimate of the amount expected to be payable under a residual value guarantee, or if the Fund changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in income statement if the carrying amount of the right-of-use asset has been reduced to ero.

The Fund presents right-of-use assets (other than for investment properties) and lease liabilities as separate line items in the statement of net assets available for benefits.
Short-term leases and leases of low-value assets The Fund has elected not to recognise right-of-use assets and lease liabilities for short-term leases of space that have a lease term of 12 months or less and leases of low-value assets.

The Fund recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

ii.

As a lessor When the Fund acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Fund makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset.

If this is the case, then the lease is a finance lease; if not, then it is an operating lease.

As part of this assessment, the Fund considers certain indicators such as whether the lease is for the major part of the economic life of the asset.
If an arrangement contains lease and non-lease components, the Fund applies IFRS 1 to allocate the consideration in the contract.

The Fund recognises lease payments received under operating leases as income on a straight-line basis over the lease term as part of other income’.
2.12 Employee entitlements (a) Wages and salaries and sick leave Liabilities for wages and salaries and incentives expected to be settled within 12 months of the reporting date are recognised in employee entitlements liabilities in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
Payments for non-accumulating sick leave and other leave arrangements are recognised when the leave is taken and measured at the rates paid.

(b) Termination benefits The Fund recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a formal plan without the possibility of withdrawal; or providing termination benefits as a result for an offer made for redundancy.
Benefits falling due more than 12 months after the balance date are disclosed at their present value.
F I J I N AT I O N A L P R O V I D E N T F U N D 71 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2 Summary of significant accounting policies (continued) 2.12 Employee entitlements (continued) (c) Annual leave, long service leave, gratuity benefits and retirement benefits Gratuity and retirement benefits are paid in respect of services provided up to the reporting date by employees and on retirement andor on completion of their contractual term.
The liability for annual leave, long service leave, gratuity benefits and retirement benefits is recognised in employee entitlements measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.

Consideration is given to expect future wage and salary levels, experience of employee departures and periods of service.
Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

(d) Bonus incentive The Fund pays bonuses to employees based on performance of the Fund and achievement of individual objectives by the employees.

The Fund recognises a provision where contractually obliged or where there is a past practice, subject to performance evaluation.

2.13.
2.13.

Other payables and accruals Other payables and accruals are measured at amortised cost.

2.14.

Income tax The Fund is exempt from income tax under Part 6 (2) of the Income Tax Act 201.

Hence, income tax is not separately accounted for in the Fund’s financial statements.
2.15 Provisions Provisions are recognised when the Fund has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.

Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation.
2.16 Liability for accrued benefits The liability for accrued benefits is the Fund’s present obligation to pay benefits to members and beneficiaries.

It has been calculated as each Fund’s net assets as stated on the statement of net assets available for benefits less the investment reserve account, if any.

For members of the FNPF this represents the amount standing to the balance in member accounts as at reporting date, plus solvency as set out in the Act of 10.
For the Retirement Income Fund (RIF), this represents the actuarial value of future annuity payments plus amounts required to meet solvency by the regulator, as determined by the Fund Actuary.

For the Special Death Benefit Fund (SDBF) this represents the reserve for claims incurred but not yet reported plus amounts required in meeting the solvency requirements by the regulator, as determined by the Fund Actuary.
2.17 Contributions Contributions from employers and members are recorded when control of the asset is ascertained which is upon receipt of the contribution schedule forms from the employers and the registration of the forms by the Fund.

The Fund does not accrue for contributions for which no contribution schedule forms are received or received but not registered as it is not able to reliably estimate the contributions balance.
Under the FNPF Act, the amount of contributions for an employee for a month is the amount equal to 18 of the total wages payable to the employee by the employer for the month.

The contribution shall be paid as an 8 deduction from the total wages of the employee and a 10 contribution by the employer.

The legislation allows for additional contributions to be made.
In response to the effects of COVID-19 pandemic on the Fijian Economy, the contribution rates were reduced to a total of 10 being for contribution from the employer and deducted from the total wages of the employee effective from 1 April 2020.

The contributions shown in the statements of changes in member benefits represents total contributions receivedreceivable from employers and members.
72 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 2.

Summary of significant accounting policies (continued) 2.18 Income recognition Income is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties.

The Fund recognises income when it transfers control over a product or provides a service to a third party.
Income is recognised as follows: Income Nature, timing of satisfaction of performance obligations and significant payment terms Dividend income Dividend income from investments is recognied when the right to receive payment is established.

Settlement terms are within one year.

Interest Income Property Rentals Interest income is earned from investments such as government securities, other fixed securities, loans and advances and term deposits.
Interest income is recognised using the effective interest rate method.

Property rental income from operating leases is recognised on a straight line basis over the term of the lease.

Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

Settlement terms are 30 days.

Fees Fees comprise documentation, investment application, loan confirmation, commitment and computer service fees.
Income from fees and commissions is recognised when related services have been provided.

In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit impaired) or to the amortised cost of the liability.

However, for financial assets that have become credit impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the amortised cost of the financial asset.
If the asset is no longer credit impaired, then the calculation of interest income reverts to the gross basis.

2.19 Comparative figures Where necessary, amounts relating to prior years have been reclassified to facilitate comparison and achieve consistency in disclosure with current year amounts.
2.20 Reserves Reserves comprises both the legislative solvency reserve equivalent to 10 of the total benefits accrued to members of the Fund as required under the FNPF Act 2011 and an investment reserve held in order to maintain a high level of confidence that the legislative solvency requirement will be met at all times.

2.21 Subsidiaries and Associates Subsidiaries - Subsidiaries are entities controlled by the Fund.
The Fund controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements incorporates the assets and liabilities of all entities controlled by the fund as at 30 une 2021 and the results of all controlled entities for the financial year then ended.
The effects of all transaction between entities in the consolidation entity are eliminated in full.

Investment in subsidiaries is accounted for at fair value through profit or loss in the separate financial statement of the Fund.

Associates - Associates are those entities in which the Fund has significant influence, but not control, over the financial and operating policies.

Investment in associates is accounted for at fair value through profit or loss in the separate financial statements of the Fund.
The investments in subsidiaries and associates are accounted in accordance with IFRS 10 and IAS 28 in the consolidated financial statements.

F I J I N AT I O N A L P R O V I D E N T F U N D 73 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.
Financial risk management 3.1 Financial risk factors The Fund’s objective is to take a strategic and consistent approach to managing risks across the Fund through risk management and associated activities that assist in the safeguarding of the Fund’s assets and seeks to avoid potential adverse effects on the Fund’s financial performance.

The respective Board of Directors and Board Audit Risk Committee are responsible for the risk management, monitoring and reporting functions.
At the Fund level, they are supported by: FNPF’s Board Investment Committee; FNPF’s Corporate Governance and Enterprise Risk Department; and FNPF’s Internal Audit Department.

Risk management is carried out by executive management under policies approved by the Board of Directors.

FNPF caters for the retirement funding of its members and invests to cater for this.
The Fund’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

(a) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.

Market risk comprises three types of risk: currency risk, interest risk and other price risk.
The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

(i) Foreign exchange risk The Fund has investments in foreign currencies and procures certain services from abroad and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the S, Australian and N dollar, PG as well as the Euro.
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

The Fund’s Treasury departments manage foreign exchange risk against their functional currency, in this case the Fiji dollar.

Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency other than the Fiji Dollar.
For significant settlements, the Fund is required to seek quotations from recognised banks and use the most favourable exchange rate for purposes of the settlement.
The Fund’s total exposure to fluctuations in foreign currency exchange rates at the balance sheet date were as follows (amounts denominated in FD’000): Assets Cash and cash equivalents AUD NZD USD Foreign equities AD SD PG Liabilities AD SD ERO 2021 000 3,466 412 67,642 201,644 38,239 263,94 - - - 2020 000 1,680 - - 172,66 18,837 272,10 - - - The Board maintains foreign investment exposures reflective of the Fiji dollar weighted basket of currencies as a natural hedge against relative movements in foreign exchange rates.
74 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (a) Market risk (continued) (i) Foreign exchange risk (continued) Sensitivity Analysis Following analysis of historical data over the past years and expected currency rate movements during the 2021 financial year together with consultation with the investment consultant, the Fund’s Investment Department considered a 10 movement in the Fiji Dollar as reasonably possible for the 202120 reporting period.
This analysis assumes that all other variables, in particular interest rates, remain constant.
A 10 strengtheningweakening of the FD against the AD, SD, Euro, PG and ND at 30 une would have increased (decreased) the income statement and net assets by the amounts shown below: Assets 30 June 2021 USD AUD PGK ND 30 June 2020 USD AUD PGK Liabilities 30 une 2021 USD ERO 30 June 2020 USD ERO Carrying Amount $000’s (FD) 105,881 20,110 263,9 412 18,837 174,246 272,10 - - - - Impact on net assets -10 $000’s (FD) 11,76 22,790 29,328 46 63,929 4,030 2,643 1,220 44,893 - - - - - - 10 $000’s (FD) (9,626) (18,646) (23,996) (37) (52,305) (4,029) (2,636) (1,218) (44,883) - - - - - - (ii) Price risk Fund is significantly exposed to equity securities price risk because of investments held by the Fund classified in the Statement of net assets available for benefits at fair value through profit or loss.
The Fund is not exposed to commodity price risk.

To manage its price risk arising from investments in equity securities, the Fund diversifies its portfolio.

Diversification of the portfolio is done in accordance with the limits set by the Fund restrictions by Reserve Bank of Fiji (RBF) over offshore investments.
The Fund’s investments in equities are largely those which are publicly traded on the South Pacific Stock Exchange (for local investments), Port Moresby Stock Exchange and Australian Stock Exchange (for offshore investments).

The table in the following page summarises the sensitivity of increases (decreases) of the above two exchanges prices on Fund’s change in net assets.
The change in net assets would increase (decrease) as a result of gains (losses) on equity securities classified at fair value through income statement.

Assuming that the equity investment prices increased (decreased) in value by it would have had an equal but opposite effect.
F I J I N AT I O N A L P R O V I D E N T F U N D 75 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.1 Financial risk factors (continued) (a) Market risk (continued) Sensitivity Analysis (continued) (ii) Price risk (continued) Index South Pacific Stock Exchange Australian Securities Exchange Papua New Guinea Stock Exchange Carrying Amount 2021 $000 Impact on net change in assets 2021 $000 2020 $000 22,72 11,286 109,916 263,906 5,595 13,19 30,076 10,420 4,336 13,60 28,361 (iii) Cash flow interest rate risk The Fund has significant interest-bearing assets in the form of short and long-term cash deposits, government securities, fixed interest securities, and loans and advances.
These are at fixed interest rates and hence there are no cash flow interest rate risks arising from fluctuations in market interest rates during the period of investment or loan.

Consequently there is limited cash flow interest rate risk.

Risks arising from variable rate instruments are considered not to be material.

For re-investment of short and long term cash deposits, the Fund negotiates an appropriate interest rate with the banks and invests with the bank which offers the highest interest return.
For fixed interest securities, the prices and terms are usually set by the issuer and the terms are determined and agreed at the start.

Terms for loans and advances are set by the Fund and agreed at its commencement.

The assumed average long run market rate of reinvestment of RIF asset cash flows over the term of current annuities have declined from .2 to 4.0 at 30 une 2021.

This is mainly due to the reduction occurred in the government bond yield curve in FY2021.
The calculated proportion of RIF asset cash flows was 79.3 under this assumption and assumptions stated in note 26(b), this means that 79.3 of each RIF asset cash flow, together with interest at the assumed reinvestment rate, is calculated to be just sufficient to meet the projected in-force annuity payments and expenses as they fall due.

Given the fixed nature of interest rates described above, the cash flow interest rate risk is minimal.
(b) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Fund.

The Fund has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults.

The Fund’s exposure and the credit ratings of its counterparties are continuously monitored.
Credit exposure is controlled by counterparty limits that are reviewed and approved by the management on a regular basis.
Impairment losses(reversals) on financial assets at amortised cost recognised in changes in net assets were as follows: Cash and cash equivalents Investment income receivable Other receivables Term deposits Government securities Other fixed interest securities Loan and advances ndrawn loan commitments 76 F I J I N AT I O N A L P R O V I D E N T F U N D 2021 $000 (06) 1,197 3,34 461 24 (0) 18,611 (2,277) 21,035 2020 $000 389 (6) 3,926 (963) (1,068) (1,103) 40,340 2,283 43,798 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) Amounts arising from Expected Credit Loss (ECL) These 2021 balances largely represent impairment of loans, financial assets at amortised cost and contribution receivables in the current year, or the reversal of previous impairment losses and are reflected in the income statement.

Inputs, assumptions and techniques used for estimating impairment.
Refer to accounting policy in Note 2.8 (d) Significant increase in credit risk When determining whether the risk of default on a financial instrument has increased significantly since initial recognition, the Fund considers reasonable and supportable information that is relevant and available without undue cost or effort.

This includes both quantitative and qualitative information and analysis, based on the Fund’s historical experience and expert credit assessment and including forward-looking information.
Generating the term structure of Probability of Default (PD) The Fund collects performance and default information about its credit risk exposures and analyses by type of borrower to determine the term structure of PD for exposures.

The Fund uses the rating tools developed by Standard & Poors (S&P) to generate estimates of the remaining lifetime PD of exposures and how these are expected to change as a result of the passage of time.
The PDs used are the S&P rates based on sovereign risk ratings attaching to or appropriate to the counterparty or the S&P rates applying directly to the risk rating of the counterparty.

These S&P rates are applied to commercial paper and treasury bills, other debt securities, term deposit, cash and cash equivalents, interest receivable and loans and advances.

Those loans guaranteed by Government adopt the sovereign ratings of Government.
For other receivables and certain loans the Fund individually assesses the expected credit losses.

Modified financial assets The contractual terms of a loan may be modified for a number of reasons, including changing market conditions and other factors not related to a current or potential credit deterioration of the borrower.

An existing loan whose terms have been modified may be derecognised and the renegotiated loan recognised as a new loan at fair value.
The Fund renegotiates loans to borrowers in financial difficulties (referred to as forbearance activities’) to maximise collection opportunities and minimise the risk of default.

Generally, this forbearance is a qualitative indicator of a significant increase in credit risk.
Due to the impact of COVID-19 which resulted in the closure of borders and suspension of international flights, affecting the operations of the Resorts, repayment relief in the form of moratorium of principal and interest has been provided from April 2020 to une 2021 and with second wave of the pandemic and continued closure of borders and restrictions in international travel, the hotel accounts continued to experience short -term liquidity difficulties and those difficulties were mitigated by an extension of repayment holidays that will reduce the risk of default and not experience a significant increase in credit risk.
Loans agreements contain pre-existing clauses permitting the borrower a payment holiday, so it is not considered a modification to the original loan contract.

Based on the assessment, the fund considered that the payment holiday related to COVID-19 for hotels is not a significant increase in credit risk and remain in the same stages.
Repayment holidays were approved for the loans to Air Pacific Limited through granting of principal moratorium until 31 December 2023, while they continue to pay interest during this period.

The loan term for Air Pacific Loan facilities were also extended by seven (7) years.

Based on management assessment, the modification was seen as non-substantial and thus not resulting in de-recognition.

Interest rates for several loans were reset during the year, which was in accordance to the contractual agreement.
Furthermore the restructuring did not result in any change to the outstanding loan balance.

Definition of default The Fund considers financial assets to be in default when: - the counterparty is unlikely to pay its credit obligations to the Fund in full, without recourse by the Fund to actions such as realising security (if any is held); or - the borrower is past due more than 30 days on any material credit obligation to the Fund.
In assessing whether a borrower is in default, the Fund considers indicators that are: - qualitative e.g.

breaches of covenant; - quantitative e.g.

overdue status and non-payment on another obligation of the same issuer to the Fund; and F I J I N AT I O N A L P R O V I D E N T F U N D 77 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) Definition of default (continued) - based on data developed internally and obtained from external sources.

Inputs into the assessment of whether financial assets are in default and their significance may vary over time to reflect changes in circumstances.
Incorporation of forward-looking information The Fund uses sovereign risk ratings which by their nature incorporate forward-looking information into the determination of both its assessment of whether the credit risk of an instrument has increased significantly since its initial recognition and its measurement of ECL.

The Fund also considers the future direction of the respective economies.
If necessary the Fund will develop a further individual assessment adjustment if its analysis suggests the need to do so.

The Fund has incorporated the Gross Domestic Product (GDP) annual contraction rate of -21.7 in determination of expected credit losses.

The Fund has also conservatively adjusted the credit rating of the total loan book downwards by one notch.

The Loss Given Default (LGD) estimate for selected loans were also adjusted.
Measurement of ECL The key inputs into the measurement of ECL are the term structure of the following variables: - probability of default (PD); - loss given default (LGD); - exposure at default (EAD).

PD estimates are estimates at a certain date, which are calculated based on statistical rating models, and assessed using rating tools.

These statistical models are based on internally compiled data comprising both quantitative and qualitative factors and the rating tools developed by S&P.
If a counterparty or exposure migrates between ratings classes, then this will lead to a change in the estimate of the associated PD.

Probability of default for loan and advances range from 1.98 to 3.68.

LGD is the magnitude of the likely loss if there is a default.

The Fund estimates LGD parameters based on the parameters determined for different types and natures of financial assets, and using guidance material developed by ratings agencies and other independent parties.
LGD for loans and advances range from 10 to 20.

The LGD rates reflect the structure, collateral, seniority of the claim and recovery costs of any collateral that is integral to recovery or settlement of the financial assets as well as the finance cost of settlement delays.

EAD represents the expected exposure in the event of a default.
The Fund derives the EAD from the current exposure to the counterparty and potential changes to the current amount allowed under the contract including amortisation.

The EAD is generally the gross carrying amount of the financial asset.

As for expected losses a 100 factor is applied to drawn and undrawn committed exposures.
Collateral management Collateral is used to mitigate credit risk, as the secondary source of repayment in case the counterparty cannot meet its contractual repayment obligations.

Impact of COVID-19 pandemic on the credit risk exposure The first onslaught of the COVID-19 pandemic in March 2020 had caused significant deteriorations in economic conditions for some organisations and an increase in economic uncertainty for others.
This was further exacerbated by the second wave which hit the country in April 2021.

As a result counterparts are undertaking a diverse and sometimes complex range of financing activities in response to the effects of COVID-19 on their businesses and industries.

These activities include obtaining and utiliing credit facilities, calling on undrawn facilities and moratoriums.
Given the unprecedented impact COVID-19 is having on various industries, historical collection patterns (past events) may no longer be a reliable indicator of the recoverability of an organisation’s financial asset’s portfolio.

The effects of COVID-19 will impact the assumptions about the collectability of the financial assets and hence the expected credit loss (ECLs).
The Fund has used its judgments based on the specific facts and circumstances including the recovery forecasts of different industries, the various government stimulus packages and the organisation’s own responses to determine the various possible future scenarios which forms the basis of their assumptions in their estimation of ECL.

78 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) Maximum exposure to credit risk For financial assets recognised on statement of net assets available for benefits, the maximum exposure to credit risk is the carrying amount.

For contingent exposures, the maximum exposure to credit risk is the maximum amount the Fund would have to pay if the instrument is called upon.
For undrawn facilities, the maximum exposure to credit risk is the full amount of the committed facilities.

The Fund uses a two-dimensional risk grading system, which measures both the customer’s ability to repay (probability of default (PD) and the loss in the event of default (LGD) (a factor of the security taken to support the lending).

It also uses financial and statistical tools to assist in the risk grading of individual financial assets.
These risk grades are actively and periodically reviewed and monitored to ensure the risk grade of the customer is accurately reflected at all times.

The carrying amounts of financial assets represent the maximum credit exposure.
Concentration of credit exposure The Fund’s significant end-of-year concentrations of credit exposure by portfolio type were as follows, before impairment: 2021 2020 Cash and cash equivalents Investment income receivable Term deposits Government Bonds Other Fixed Interest Securities Loans and advances uasi-government loans Loans and advances – commercial loans Other receivables $000 96,27 108,140 21,00 % 10 2 4 $000 298,828 140,540 383,000 3,497,827 61 3,363,983 56,000 4,682 1,099,964 106,889 1 1 19 2 124,014 91,004 9,807 ,726,29 100 ,412,131 % 6 3 7 62 2 2 1 100 950,955 17 The following table presents the Fund’s financial assets held with counterparties based on S&P’s credit ratings.
AAA is the highest quality rating possible and indicates the counterparty has a strong capacity to pay interest and principal.

NR indicates that the counterparty has not been rated based on S&P ratings.
Concentration by credit rating 2021 2020 A- to A BBB- to BBB BB- to BB B- to B CC to CCC NR % 10 0 76 3 3 8 % 10 3 72 3 3 9 100 100 F I J I N AT I O N A L P R O V I D E N T F U N D 79 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) Concentration of credit exposure (continued) Credit risk concentration in loans and advances disclosed in note 13 are as follows: 2021 2020 Agriculture Construction Financial institutions Energy Telecommunications Manufacturing Mining Private others (includes staff loans) Professional and business services Real estate development Education Transport and storage Wholesale and retail Other (Hotels & Restaurants) Total $000 4,682 - 30,000 - 71,761 - - 202 1,001 26,702 4,272 226,31 39,216 700,279 % 4 0 3 0 6 0 0 0 0 2 1 20 3 61 $000 48,20 - 30,000 42,484 80,000 - - 104 1,000 2,633 4,62 174,40 - 63,116 % 5 0 3 4 8 0 0 0 0 2 1 17 0 60 1,145,646 100 1,041,959 100 There is no geographic credit risk concentration as there are no loan exposure outside of Fiji.
Sensitivity Analysis The modelled ECL is sensitive to the length of time between a downturn and a recovery, and the period of time recovery action takes to complete, as it influences both the probability of default, and the value of collateral that may be utilised.
A - change in PD and -0 change in LGD at 30 une 2021 would have increased(decreased) the net change in net assets and net assets by the amounts shown below: Loans and advances PD - Loans and advances LGD -0 Loans and advances Increase $000 83 8,32 Decrease $000 (83) (8,32) The Fund adopts a similar approach to that adopted for debt securities to its consideration of ECLs for its loans and advances.
Those loans not individually assessed for expected credit losses have PD rates assigned using S&P rates appropriate to the rating of the organisation, or a proxy for that rating if that organisation is not specifically rated.

80 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) Maximum exposure to credit risk The following table contains an analysis of the credit risk exposure of loans and advances for which an ECL allowance is recognied.

The Gross carrying amount of loans and advances below also represents the Fund’s maximum exposure to credit risk on these assets.
2021 2020 12-month Lifetime ECL Lifetime ECL ECL not credit- credit- impaired impaired Total Total Stage 1 $000 Stage 2 $000 Stage 3 $000 $000 $000 63,4 272,027 - - - - - - - - - - 92,81 821,23 - 16,398 16,027 16,027 - 203,037 203,037 203,037 1,001 1,001 1,001 653,554 (3,471) 650,083 272,027 (13,234) 258,793 220,065 1,145,646 1,041,959 (14,28) (171,233) (12,622) 65,537 974,413 889,337 Gross exposure 17,028 17,028 Impairment allowance (1,814) (1,814) Carrying amount 1,214 15,214 Fair value of collateral held 24,770 24,770 Credit grade Standard Special mention Substandard Doubtful Loss Gross carrying amount Loss allowance Carrying amount Credit-impaired assets Loans and advances Total credit impaired assets The following tables show reconciliations from the opening to the closing balance of the loss allowance for loans and advances for the Fund.
Loss allowance at 1 July Movements with impact to income statement Transfer from stage 1 to stage 2 New loans originated Loans that have been derecognised Changes in PDsLGDsEADs Changes to model assumptions and methodologies 12-month Lifetime ECL Lifetime ECL ECL not credit- Stage 1 $000 3,879 - 388 (16) (304) 585 impaired Stage 2 $000 147,311 - 2,636 - 2,460 - credit- impaired Stage 3 Total $000 1,432 $000 12,622 441 - - 441 3,024 (16) 12,70 14,726 - 585 Loss allowance at 30 June 4,383 152,407 14,443 171,233 F I J I N AT I O N A L P R O V I D E N T F U N D 81 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) Maximum exposure to credit risk The following tables show reconciliations from the opening to the closing balance of the gross carrying amounts for loans and advances to help explain their significance to the changes in the loss allowance: Gross carrying amounts at 1 July Movements with impact to income statement Transfer from stage 1 to stage 2 Financial assets derecognised during the period other than write-offs New financial assets purchased or originated Write-offs Gross carrying amounts at 30 June 12-month ECL Lifetime ECL Lifetime ECL not credit- credit- Total impaired impaired Stage 1 Stage 2 Stage 3 $000 $000 $000 $000 603,530 234,391 204,038 1,041,959 - - - - (16,398) 16,398 - - (2,07) 106,908 - (3,944) 3,601 - (371) (6,822) - - 160,509 - 657,931 267,650 220,065 1,145,646 Cash and cash equivalents and Term Deposits The Fund held cash and cash equivalents of 96,27,000 and term deposits of 21,00,000 at 30 une 2021 (2020: 298,828,000 and 383,000,000).
The cash and cash equivalents and term deposits are held with banks, which are rated A- to B-, based on Standard and Poor’s (S&P) ratings.

Impairment on cash and cash equivalents has been measured on the 12 month expected loss basis and reflects the short maturities of the exposures.

The Fund considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.
The Fund uses a similar approach for assessment of ECLs for cash and cash equivalents to those used for debt securities.

Debt investment securities Debt investment securities includes government bonds and other fixed interest securities.

The Fund held debt investment securities of 3,3,827,000 at 30 une 2021 (2020: 3,487,997,000).The debt investment securities are held with banks, credit institutions and the Fiji Government.
Debt investment securities held with banks and the Fiji Government are rated B to B, based on S&P ratings.

Impairment on debt investment securities held with banks and credit institutions has been measured on the 12 month expected loss basis and reflects the short maturities of the exposures.
The Fund considers that its debt investment securities held with banks and credit institutions have low credit risk based on the external credit ratings of the counterparties (in relation to banks) and available press and regulatory information (in relation to credit institutions).

Impairment on debt investment securities held with the Fiji Government has been measured on the 12 month expected loss basis.
Sovereign rating of B to B- based on Standard and Poors (S&P) ratings has been adopted for government securities and those advances guaranteed by Government.

The Fund is exposed to credit risk which is the risk that a counter party will be unable to pay amounts in full when due.

The Fund’s maximum credit risk, excluding the value of collateral, is generally reflected in the carrying value of financial assets.
The impact of possible netting of assets and liabilities to reduce potential credit exposure is not significant.

Impairment provisions are provided for expected credit losses.

Credit risk on financial assets is minimied where applicable by dealing with recognised monetary institutions.

Selection of a counterparty is made based on their respective credit ratings.
Investment decisions are based on credit ratings of the particular issuer and counterparty limits, as well as liquidity and expected returns.
82 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3 Financial risk management (continued) 3.1 Financial risk factors (continued) (c) Liquidity risk Liquidity risk is the risk that the Fund will encounter exertion in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial asset.
Being a key investment risk, Liquidity has become one of the paramount risks requiring attention as the world tries to manage financial and economical catastrophes created by impact of COVID-19 pandemic.

Besides the significant attention required by the Fund in managing its cash and cash equivalent resources to meet the uncertainties arising out of the continuing pandemic, Liquidity Risk had always been a significant risk for the Fund.
It requires vigilance and long term planning to place investment assets to mature in line with the expected member liability payout.

Treasury Department under the guardian of Treasury policy manages and monitors the liquidity strategies.

The Funds Treasury and other policies are designed to ensure it maintains sufficient cash and liquid investments to meet its obligations to members and counterparties in periods of stress or otherwise.
The Board together with its Investment Committee and the Liquidity Committee regularly monitors the Fund’s liquidity position and reviews the results of liquidity stress testing across scenarios.

In addition, management monitors and maintains adequate liquid asset balances to finance its operations and mitigate the effects of fluctuations in cash flows.

The financial liabilities of the Fund at 30 une 2021 comprise of net assets attributable to members.
As at 30 une 2021, the financial liabilities were worth 6,722,413,000 and the financial assets were valued at 7,736,761,000.

The financial assets are added to the guaranteed interest income from Fixed Income risk free portfolio investments worth 2,477,947,000 thereby topping up the financial assets to 10,214,708,000.

pon matching the financial assets to liabilities, there a residual net positive position of 3,492,29,000.
The Asset and Liability matching is an economic indicator of managing short and long-term liquidity risks.

Net positive asset and liability funding gap signifies effective management of the Fund over a long-term retrospectively.

In terms of offshore investments, the Fund is limited by Reserve Bank of Fiji’s (RBF) exchange regulations.

RBF Exchange Control approves all outward funds transfers required for offshore investments.
Due to an almost non-existent secondary market, most of the Fund’s local investments in capital and money market do not have the opportunities of secondary trading.

Fiji Government and quasi-government securities are among these investments, which are held to maturity with limited chance for the Fund to sell or exchange them.

Moreover, commercial loans and property investments are also part of the Fund’s portfolio.
Within the local markets, these assets have limited liquidity and large sell downs of positions may not be possible.

In addition, these investments have different investment maturity spans, which may not meet the timing of the member withdrawals.

Therefore an active asset and liability management model is used to secure Fund’s long-term assets and liability position.
The Fund’s Treasury department manage the above liquidity risk through: - monthly reporting on the position of these investments to the Board and Board Investment Committee (BIC); - an established prudent asset allocation strategy which has been approved by the Board; and - monitoring of maturities of investments and investment outflows including the forecasting of the availability of funds.
Effects of COVID-19 lead to increased withdrawals, decrease in contributions arising out of unemployment, and decreased contribution rates.

To combat such adversities the Fund maintains liquidity mitigation strategies.

The Treasury Policy on Liquidity Buffer safeguards the Fund from mass withdrawals or other unforeseen circumstances.
The following items are treated as Cash on Call (Reserves) and are used as mitigation strategy to rectify any probable liquidity buffer breaches: - Arrangement with RBF for Line of Tradeable Facility for 10 million to 200 million- (Bonds Buy Back Scheme) where FNPF sells bonds to RBF as and when required.

Include sell of AS registered stock of 8 million, which has a days turnaround time.
- The Fund’s liquidity risk is managed on a daily basis in accordance with the Fund’s Treasury policy and Investment policy statements.

Stress testing and scenario analysis are done on a regular basis.

Generally, the Fund ensures availability of sufficient liquidity to meet its liability on maturity under normal and stressed conditions.

The liquidity risk is managed actively to avoid any damage to the reputation of the Fund.
F I J I N AT I O N A L P R O V I D E N T F U N D 83 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3 Financial risk management (continued) 3.1 Financial risk factors (continued) (c) Liquidity risk (continued) The tables below shows the Fund’s financial liabilities and assets for the year ended 30 une 2021.
Except for RIF financial liabilities (274,301,000), all other Fund’s financial liabilities and assets are based on their contractual maturities using undiscounted cash flows.
Financial liabilities On demand Less than or equal to 3 months 3 – 12 months 1 to 5 years Total Greater than 5 years $000 $000 $000 $000 $000 $000 Member balance-Fund 41,92 33,306 186,974 1,123,391 4,02,404 6,388,000 Allocated to members Retirement income Fund Allocated to members - SDBF Total member liabilities Other payables and accruals Lease liabilities Total financial liabilities - - 6,400 19,199 83,444 16,28 274,301 222 665 850 210 1,947 541,925 39,928 206,838 1,207,685 4,667,872 6,664,248 281 - ,208 - 9,049 712 2,303 2,420 3,122 3,070 19,963 38,202 542,206 45,136 216,599 1,212,408 4,706,064 6,722,413 Financial Assets On demand Less than or equal to 3 months 3 – 12 months 1 to 5 years Total Greater than 5 years Cash and cash equivalents Term deposits Government securities Other fixed interest securities Equity investments Loans and advances Total financial assets Interest income – Fund Interest income - RIF Interest income - SDBF $000 $000 $000 96,27 - - $000 - 73,000 137,00 5,000 $000 - - $000 96,27 21,00 70,900 144,990 783,601 2,498,336 3,497,827 5,000 14,000 37,000 - 56,000 - - - 2,22,31 2,22,31 3,886 14,165 240,314 887,281 1,145,646 - - - - - 596,257 152,786 310,655 1,065,915 5,611,148 7,736,761 - - - 61,974 166,409 913,28 1,098,548 2,240,49 6,163 1,173 19,386 117,20 2,197 12,474 66,591 12,24 209,390 28,098 Total financial assets including interest income 596,257 222,096 498,647 2,109,167 6,788,541 10,214,708 84 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 3.
Financial risk management (continued) 3.1 Capital risk management The capital of the Fund is represented by the net assets available to pay benefits to its members.

The amount of net assets available to pay benefits to its members can change significantly as the Fund receives contributions and pays benefits to members on a daily basis.
The Fund’s objective when managing capital is to safeguard the Fund’s ability to continue as a going concern in order to provide returns and benefits to its members and to maintain a strong capital base to support the development of the investment activities of the Fund.
In order to maintain or adjust the capital structure, the Fund’s policy is to monitor the level of monthly contributions income and benefits payable relative to the assets it expects to be able to liquidate and adjust the amount for investments and interest credited to the members account at the end of each reporting period.

The Board members and executive management monitor capital on the basis of the value of net assets available to pay benefits.

4.
4.

Critical accounting estimates and judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Fund makes estimates and assumptions concerning the future.

The resulting accounting estimates will, by definition, seldom equal the related actual results.

The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a) Impairment of financial assets Impairment of financial assets carried at amortied cost are assessed using the expected credit loss model.

For details of impairment on financial assets, refer to note 2.8 (d) and note 3.1(b).

(b) Impairment of property, plant and equipment The Fund assesses whether there are indicators of impairment of all property, plant and equipment at each reporting date.

Where there are indicators of impairment an impairment test is performed.
If the carrying amounts exceeds recoverable amount an impair- ment provision is recognised.

(c) Actuarial present value of accrued benefits The Fund determines the actuarial present value of the accrued benefits in its Retirement Income Fund (RIF) using economic and demographic assumptions, and taking into account likely future macroeconomic conditions and the recent experience of the Fund (if applicable).
The demographic assumptions are applied to project benefit payments up to the date of the cessation of the last an- nuity.

Asset cash flows are also projected and the rate of future (re)investment return on the projected net cash flows of the RIF (projected asset cash flows less projected benefit payments less projected expenses) is assumed to be 4.00 per annum (2020:.2).
The methodology requires the proportion of projected asset cash flows, which together with assumed reinvestment returns, is just suf- ficient to meet the projected annuity payments and expenses as they fall due.

The implied discount rate after the allowance for expenses is 4.48 pa (2020: .36).
The solvency reserve for RIF is determined after taking into account the projected liability cashflows of the in-force annuity business and the projected asset cashflows at the valuation date, including under reasonably foreseeable adverse circumstances.
For the valuation at 30 une 2021, the determination was carried out by Mr. Peter Martin, Fellow of the Institute of Actuaries of Australia, in accordance with the International Standard of Actuarial Practice 2 issued by the International Association of Actuaries.

Determination of the SDBF reserve for claims incurred but not reported was also carried out by Mr. Martin, applying the chain ladder method to reported run-off data.
The solvency reserve for the SDBF is represented by both the provision for mortality fluctuations (inclusive of Covid) and catastrophe reserve.

F I J I N AT I O N A L P R O V I D E N T F U N D 85 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 4.
Critical accounting estimates and judgments (continued) (d) Fair value determination for financial assets and investment properties carried at fair value The Fund carries a number of its financial assets, being equity investments at fair value.

Refer to Note and 14 for details.

In addition, it carries its investment properties at fair value, as detailed in note 1.

Refer also the comments below regarding COVID-19 impacts.
COVID-19 Pandemic Due to the COVID-19 pandemic, there is heightened estimation uncertainty at balance date that increases the risk of a material adjustment to the carrying amounts of assets within the next financial year relates to expected credit losses, valuation of investment properties and equity investments.
The impact of the COVID -19 pandemic on each of these accounting estimates is discussed further below: Equity investments Equity investments are carried at fair value at balance date based on market information andor the best estimates of fair value as determined generally by independent and knowledgeable valuers, but markets are subject to considerable volatility (though it is noted that the global markets have generally returned to their pre-COVID-19 level at the time of release of the financial statements).
The valuations bring with them an increased level of uncertainty, which increases the risk of values in future periods or on realisation being materially different to the values at which they are recorded.

Similarly, future market movements may lead to similar impacts on the recorded values of those equities that are readily tradeable.

This increases the risk of a material adjustment to the carrying amount of equity investments within the next financial year.
The assumptions underlying the value in use calculations used to measure the fair value of equity investments were adjusted through discount rate ranging from 2.

 to 30 and cash flow projections to reflect reasonable estimates of the on-going impact of a COVID-19 operating environment in the near term and with a view to resumption of some normalcy in the medium term.
Further considerations in relation to the COVID-19 pandemic impact on equity valuations at balance date and in future periods are included in notes 5 and 14.

Investment properties Investment properties are also carried at fair value at balance date based on the best estimates of fair value determined generally by independent and knowledgeable valuers.
The property valuations also bring with them an increased level of uncertainty, which increases the risk of values in future periods or on realisation being materially different to the values at which they are recorded.

The increased risk and the uncertainty associated with COVID- 19 were adjusted thorough the discount and capitalisation rates for the properties.

The Uncertainity has also been captured through incorporating period of void in the financial projections.
This increases the risk of a material adjustment to the carrying amount of investment properties within the next financial year.

Further considerations in relation to the COVID-19 pandemic impact on investment properties valuations at balance date and in future periods are included in notes 5 and 15.
Expected credit losses The Fund’s holdings in financial assets carried at amortised cost, including loans and advances, receivables and government securities and fixed interest securities, are subject to consideration of expected credit losses that may result from delays in settlement or non- collection of the asset.
The expected credit losses have been determined based on best estimates of probability of default and loss given default, taking into consideration the possible impact of COVID-19 on the counterparties.

However, there is and increased level of uncertainty because of greater estimation around future events impacting the counterparties, which increases the risk of material adjustments being made to the level of expected credit losses as further information around the counterparties in future.
This increases the risk of a material adjustment to the carrying amount of above mentioned financial asset within the next financial year.

The Fund has used its judgments based on the specific facts and circumstances including the recovery forecasts of different industries, the various government stimulus packages and the organisation’s own responses to determine the various possible future scenarios which forms the basis of their assumptions in their estimation of ECL.
Further considerations in relation to the COVID-19 pandemic impact on expected credit losses at balance date and in future periods are included in notes 3.1(b) and 10, 11, 12 and 13.

86 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 5.
Fair value estimation Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Fund has access at that date.

The fair value of a liability reflects its non-performance risk.

The Fund measures the fair value of an instrument using the quoted price in an active market for that instrument.
A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

If there is no quoted price in an active market, then the Fund uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs.

The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction.
The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e.

the fair value of the consideration given or received.
If the Fund determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to the measurement, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transactions price.
Subsequently, that difference is recognised in the income statement on an appropriate basis over the life of the instrument but not later than when the valuation is wholly supported by observable market data or the transaction is closed out.
Fair values are categoried into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1 fair value measurement are those instruments valued based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 fair value measurements are those instruments valued based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

 Level 3 fair value measurements are those instruments valued based on inputs for the asset or liability that are not based on observable market data (unobservable inputs).
F I J I N AT I O N A L P R O V I D E N T F U N D 87 e u l a v r i a F l a t o T 0 0 0 $ 0 0 0 $ 0 0 0 $ 0 0 0 $ 3 l e v e L 2 l e v e L 1 l e v e L l a t o T 0 0 0 $ t n u o m a g n i y r r a C 0 0 0 $ 0 0 0 $ t s o C d e s i t r o m A e u l a v r i a F - , fi d n a s t e s s a l a i c n a n fi fi d n a s t e s s a l a i c n a n fi .
y h c r a : e u l a v s t n e m e t a t s l a i c n a n fi ) d e u n i t n o c ( n o i t a m i t s e e u l a v r i a F .
5 88 F I J I N AT I O N A L P R O V I D E N T F U N D 3 2 0 6 , 9 7 3 7, 2 4 , 3 2 0 6 , 9 7 3 7, 2 4 , 4 1 7 0 3 4 , 4 1 7 0 3 4 , - - , 1 3 2 2 2 , , 0 4 1 2 6 4 1 , 2 4 0 9 2 , 9 4 3 4 3 7 , 0 0 0 6 5 , 4 1 7 0 3 4 , , 1 3 2 2 2 , - 7 2 8 7, 9 4 3 , 7 2 8 7, 9 4 3 , , 4 3 8 1 2 2 2 , , 4 8 8 5 1 5 1 , 0 1 2 9 2 , 0 4 7 6 7 6 , , 4 3 8 1 2 2 2 , 7 0 1 8 3 4 , 7 0 1 8 3 4 , - 7 2 4 9 2 1 , 7 6 7, 1 8 3 , - - 7 2 4 9 2 1 , 7 6 7, 1 8 3 , - - - , 3 8 9 3 6 3 3 , 4 1 0 4 2 1 , 7 0 1 8 3 4 , - 4 1 0 4 2 1 , - - 0 0 0 6 5 , , 3 8 9 3 6 3 3 , , 1 3 2 2 2 , - - 4 1 7 0 3 4 , - - 7 0 1 8 3 4 , , 4 3 8 1 2 2 2 , 1 2 0 2 e n u J 0 3 t a s a e c n a l a B * * * * , r e v e w o H .
fi e n e b t n e m e r i t e r , .
, , 7, 2 4 f o , , , e r o f e r e h T .
.

 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 5.

Fair value estimation (continued) The following table shows a reconciliation from the opening balances to the closing balances for fair value measurements in Level 3 of the fair value hierarchy.
Equity investments Balance at 1 uly nrealised gains (losses) included in income statement Acquisition Disposal Balance at 30 une Investment properties Balance at 1 uly nrealised gains (losses) included in income statement Net Acquisition Right of use asset Balance at 30 une 2021 $000 2020 $000 1,515,884 1,336,789 104,43 47,913 (206,110) 1,462,140 (39,80) 218,900 - 1,515,884 438,107 (20,72) 13,09 (10) 430,714 38,868 (2,676) 4,877 9,038 438,107 Valuation inputs and relationships to fair value The following table summarises the quantitative information about the significant unobservable inputs used by the Fund in level 2 and 3 fair value measurements.
Type Valuation technique Government Bonds Market comparison: The fair value of the long term investment securities is based on market prices published by the Reserve Bank of Fiji.

Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Not applicable Not applicable Investment in other equity investments The valuation techniques, significant unobservable inputs and inter-relationships are set out in note 14.
Investment Properties The valuation techniques, significant unobservable inputs and inter-relationships are set out in note 15.

Sensitivity analysis For the fair values of equities investment in other equity investments and investment properties, a reasonable possible change of and 0.
at the reporting date to one of the significant unobservable inputs, holding other inputs constant would have the following effects on fair value of other equity investments and investment properties respectively: Other equity investments Discount rate (-) Adjusted market multiple (-) Cost of equity rates (-) Investment properties Capitaliation rates (- 0.
) Rate per acre (-) Increase Decrease $000 $000 (67,277) 37,860 (34,032) 78,046 37,023 49,465 (6,80) 11,428 6,766 (11,441) F I J I N AT I O N A L P R O V I D E N T F U N D 89 Note 2021 $000 2020 $000 21,997 229,128 ,463 3,119 12,264 8,472 8,191 4,774 23,706 16,839 331,315 323,638 30(b) 47,718 23,30 71,023 51,959 26,788 78,747 140,307 27,27 167,564 (10,022) (1,606) (11,628) (9,364) (167) (9,531) (326) 1,132 806 - - 27 - 1,722 1,979 183 1,286 651 (1,17) 433 1,396 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 6.
Income (a).

Interest income Fixed interest securities - Government securities - Other fixed interest securities Loans and advances Term deposits Other interest income (b).

Dividend Dividends from other equities Dividends from related parties 7.

Change in fair value of equity investments (a).

Fair value changes - equity investments nrealised gains(losses) on investments Realised gains(losses) on investments Net fair value gains/(losses) (b).
Net foreign exchange gain/(loss) nrealised exchange loss Realised exchange gains Net foreign exchange gain/(loss) 8.

Other income Other income includes the following specific items: Gain on sale of fixed assets and investment property Fees and commissions Surcharge income Performance bond* Other revenue Performance bond relates to Nadi Retail development project.
90 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 9.
General administration expenses Auditor’s remuneration: - Audit PwC - Other services - PwC - Other firms Directors fees Electricity Insurance Loss on sale of fixed assets and investment property Personnel expenses: - Salaries and wages - Other staff benefits and expenses Repairs and maintenance Other operating and general expenses 9(a).
Other operating and general expenses Training Advertising Professional subscription Software maintenance and support Motor vehicle cost Communication Stationery and printing Travelling and subsistence General and operating expenses Small assets Computer sundries Consultancy Legal cost Office cleaning Rent Water rates Office sundries Security expense Member expenses Note 9(a) 2021 $000 108 77 - 45 24 2,201 20 14,779 1,417 143 6,473 25,787 - 367 - 2,07 17 834 36 60 39 16 83 30 20 163 1,550 4 42 204 - 6,473 2020 $000 104 4 - 67 554 61 - 16,637 1,782 22 7,303 26,737 27 746 20 2,044 128 681 102 241 21 30 144 481 28 133 1,47 7 7 170 2 7,303 F I J I N AT I O N A L P R O V I D E N T F U N D 91 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 10.
Term deposits Local banks and financial institutions– local currency Impairment provision Maturity represented as: Less than or equal to 3 months 3 to 12 months 1 to 5 years 11.
Government securities Fiji Government Registered Stock Treasury Bills Impairment provision Maturity represented as: Less than or equal to 3 months 3 to 12 months 1 to 5 years Greater than 5 years 2021 $000 21,00 (713) 214,787 73,000 137,00 5,000 215,500 3,497,827 - 3,497,827 (2,128) 3,495,699 70,900 144,990 783,601 2,498,336 3,497,827 2020 $000 383,000 (22) 382,748 113,000 230,000 40,000 383,000 3,363,983 - 3,363,983 (1,883) 3,362,100 28,46 120,00 64,399 2,69,628 3,363,983 The above investments are accounted for at amortied cost and measured in accordance with note 2.8 to the financial statements.
12.

Other fixed interest securities Promissory notes Fiji Bonds Foreign Bonds Impairment provision Maturity represented as: Less than 3 months 3 to 12 months 1 to 5 years 2021 $000 - 56,000 - 56,000 (82) 55,918 5,000 14,000 37,000 2020 $000 - 124,014 - 124,014 (132) 123,882 7,000 34,189 82,82 56,000 124,014 Promissory notes and Fiji bonds are guaranteed by the Government of Fiji.
The above investments are measured at amortised cost as they are considered likely to be held to collect contractual cash flows in line with the fixed investment objectives of the Fund and the fixed price nature of the investments.

92 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 13.
Loans and advances Loans and advances (quasi-government) Loans to related parties Customer term loans Staff loans Provision for Impairment Maturity represented as: Less than or equal to 3 months 3 to 12 months 1 to 5 years Greater than 5 years Note 30(b) 2021 $000 4,682 772,138 327,722 104 1,145,646 (171,233) 974,413 3,886 14,165 240,314 887,281 1,145,646 2020 $000 91,004 71,116 23,73 104 1,041,959 (12,622) 889,337 1,699 3,829 317,920 686,511 1,041,959 The maximum exposure to credit risk at the reporting date before collateral held or other credit enhancements is the carrying amount of each class of asset above.
Collateral held against each of the above categories of loans and advances are as follows: - uasi government loans- Government Guarantee or a Debenture over all the assets.

During the year, no quasi loans were disbursed; - Loans to related parties sually a first charge over the mortgage is obtained, however other forms of security such as debentures, guarantees, liens etc are also accepted.

For Natadola Bay Resort Pte Limited, the loan is largely unsecured.
Refer below for further comments.

During the year, the Fund advanced additional loans to Farleigh Pte Limited, Barton Pte Limited and Dubbo Pte Limited towards the refurbishment of the Sheraton and Westin Resorts.

Additional loan was also disbursed to the Grand Pacific Hotel Limited as part of upgrade required towards rebranding to the Intercontinental brand; - Customer term loans head security is a registered first mortgage over property and improvements or Government Guarantee.
Lotus Garments Limited continued to progressively draw on the loan previously approved.

New loan was approved for alabo Investments Pte Limited, while Air Pacific drew on undrawn commitments approved in FY2020.

A loan is assessed as impaired if the loan is non-performing and the loan balance is greater than the security value.
Due to the impact of COVID-19, which impacted the travel and tourism industry, repayment holidays were approved for the loans to Air Pacific Limited and the hotels in FY2020.

Due to the onslaught on second wave of the pandemic in April 2021, the moratoriums were extended.

A principal moratorium was granted on loans to Air Pacific Limited until 31 December 2023, while they continue to pay interest during this period.

The loan term on Air Pacific Loan facilities were also extended by seven years.
Details of the modification assessment are outline in note 3.1(b).

The moratorium for the hotel loans were extended for additional 12 months.

Details of moratorium for the hotel loans are outlined in Note 30(b).

Natadola Bay Resort Pte Limited (NBRL) The carrying value of the loan provided to NBRL by FNPF is 298,990,000 (2020: 291,621,000).

Further details of the loan are in Note 30(b).


As at year end, the Fund is carrying a provision for impairment against the loan of 13,104,000 (2020: 140,499,000).

The increase in impairment is a result of the impact of a lower valuation outcome for the NBRL assets (being the value of the collateral) which has been affected due to the COVID-19 pandemic.
Momi Bay Resort Limited (MBRL) The carrying value of the loan provided to MBRL for the Momi Resort development is 12,179,000 (2020: 117,641,000).
The loan is secured by: - First registered Debenture over the assets of the company - First registered mortgage over Development lease LD Ref 60782-3, and portion of freehold land described as DP 10698 F I J I N AT I O N A L P R O V I D E N T F U N D 93 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 13.
Loans and advances (continued) Momi Bay Resort Limited (continued) - - Assignment of Income Assignment of Bank Accounts BSP Ac & HFC Ac Movements in the impairment provision Collectively Assessed Provisions Balance as at 1 uly 2019 Balance as at 30 une 2020 Balance as at 30 une 2021 Individually Assessed Provisions Balance as at 1 uly 2019 New and increased provisioning Provisions no longer required Balance as at 30 une 2020 New and increased provisioning Provisions no longer required Balance as at 30 une 2021 Loans to related parties $000 Customer term loans $000 Staff loans $000 - - - 107,168 3,371 - 142,39 13,033 - 155,572 - - - 5,010 4,969 - 9,979 ,78 - 15,557 104 104 104 - - - - - - 104 Total $000 104 104 104 112,178 40,340 - 12,18 18,611 - 171,233 Total provision for impairment at 30 une 2020 142,539 9,979 104 152,622 Total provision for impairment at 30 une 2021 155,572 15,556 104 171,233 Total impairment provisions as at balance date are: Collectively assessed provisions Individually assessed provisions 14.
Equity investments Traded equities Other equity investments 14(a).
Traded equities Level 1 - Local listed equities Level 1 - Foreign equities Local Unit trust Local unlisted equities Note 2021 $000 104 171,129 2020 $000 104 12,18 171,233 152,622 14(a) 14(b) 763,391 1,462,140 2,225,531 70,90 1,515,884 2,221,834 22,72 03,788 29,042 4,836 763,391 208,403 463,01 29,210 4,836 705,950 - Level 1 equity investments are classified at fair value through Profit or loss and the Fund uses the closing market price as at reporting date.
- For nit Trusts, the Fund uses exit prices at the reporting date.

- Local unlisted equities include investments in Fiji Gas Limited and Yatu Lau Company Limited.

These are classified at fair value through Profit or loss and is valued using ontiki Price Matching Services Over the Counter facility as these shares are traded by a willing buyer and willing seller at the reporting date.
94 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 14.

Equity investments (continued) (b).
Other equity investments Investment in other equity investment consists of the following: Name Principal activities Place of business Valuer % Owner- ship 2021 Fair value $000 2020 Fair value $000 Subsidiaries Amalgamated Telecom Hold- ings Limited* Home Finance Company Pte Limited FNPF Holdings (PNG) Limited Investment Financial services Telecommunications Yatule Beach Resort Pte Limited FNPF Hotel Resorts Pte Limited FNPF Nominees Limited Resort operations Resort operations Nominee Services Natadola Bay Resort Pte Limited Momi Bay Resort Pte Limited Resort operations Resort operations Dareton Pte Limited Health Care (Fiji) Pte Ltd Land development Healthcare Grand Pacific Hotel Pte Ltd Resort operations Farleigh Limited Resort operations Associates Energy Fiji Limited Tropic Health Incorporated (Fiji) Limited Energy Medical Active (Fiji) Co. Limited Tourism Halabe Investments Limited Real Estate Fiji Ports Corporation Limited Wharfage Bligh Water Shipping Limited Shpping Fiji Fiji PNG Fiji Fiji Fiji Fiji Fiji Fiji Fiji Fiji Fiji Fiji Fiji Fiji Fiji Fiji Fiji Other Vodafone Fiji Pte Limited Telecommunications Fiji FTI Consulting (Australia) Pty Ltd FTI Consulting (Australia) Pty Ltd Management Assessment Colliers New ealand Colliers New ealand Management As- sessment Colliers New ealand Colliers New ealand Rolle Associates Management As- sessment Colliers New ealand Colliers New ealand Management As- sessment Management As- sessment Management As- sessment FTI Consulting (Australia) Pty Ltd Management As- sessment FTI Consulting (Australia) Pty Ltd 71.
712,677 64,434 7.0 164,462 148,697 100.0 49 100.0 4,081 2 - 100.0 42,967 44,24 100.0 100.0 100.0 100.0 80.0 - - - 8,000 6,109 - - 9,488 5,400 1,487 100.0 8,83 12,300 100.0 3,280 74,80 20.0 46.0 23.0 2.0 - - - 206,110 - - 884 884 39.0 109,716 86,022 26.0 - - 49.0 369,062 281,18 1,462,140 1,515,884 The above investments have been measured at fair value in accordance with note 2.8(c)(i) and 2.21.
FNPF exercised its rights to participate in the Amalgamated Telecom Holdings Limited (ATH) Share Rights Issue during the year.

FNPF invested 20,000,000 shares paid in three installments.

The final installment was paid in uly 2021, for the issue of the share certificate.

Total shareholding will increase to 72.7 from 71..
During the year, FNPF disposed its total equity interest of 20 in Energy Fiji Limited to Sevens Pacific Pte Limited which was acquired in April 2020.

A realied gain of 2,390,000 has been recorded in the financial statements.

F I J I N AT I O N A L P R O V I D E N T F U N D 95 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 14.

Equity investments (continued) b.


Other equity investments (continued) Valuation technique and significant unobservable inputs The following table shows the valuation techniques used by the independent valuers in measuring Level 3 fair values, as well as the significant unobservable inputs used.
Type Valuation technique Significant unobservable inputs Other equity investments ATH/VFL/HFC/FPCL: - Discounted Cash Flow Method (DCF) - Future maintainable earnings (FME) Hotels: - Discounted Cash Flow Weighted Average Cost of Capital (WACC): 9.8 -10.8 Note: does not include Digitec Communications (PNG) specific WACC range of 28-30.

 Earnings multiple: Method (DCF) 0.9x- 14.
x Inter-relationship between signifi- cant unobservable inputs and fair value measurement The estimated fair value would increase(decrease) if any of the significant unobservable inputs were changed: Earnings multiple was higher (increase); Weighted Average Cost of Capi- tal were lower (increase) Discount rate were lower (in- - Income Capitaliation Discount Rate: 9.7 crease) -14.
Capitaliation rate were lower Capitaliation rate: (increase) 8.7 -12.0; Valuation Process FNPF engages independent, reputable and adequately qualified international firms to carry out valuations of its investment in equities.

The valuation firms are selected via a tender process in compliance with the Fund’s Procurement Policy.
The firms selected to carry out the valuations work with the Fund management team and the investee’s management team to prepare a business valuation required under IFRS 13.

The Board reviews and approves the valuations undertaken by the independent valuers subsequent to the endorsement by the Board Investment Committee (BIC).
The business valuations of ATH, VFL, HFC and FPCL were carried out by FTI Consulting (Australia) Pty Limited and Colliers International-Auckland was engaged to carry out the valuation of the Fund’s investments in hotel and resort operations.

FTI Consulting (Australia) has undertaken the valuation in accordance with the Accounting Professional & Ethical Standards Board Limited Professional Standard APES 22 Valuation Services’.
The Valuation reports are based on information available on 30 une 2021 and the impact caused by COVID-19 global pandemic has been considered.

A combination of both Discounted Cashflow (DCF) and Capitaliation of future maintainable earnings (CFME) methodologies were used to ascertain the values at year end.

An illiquidity discount or discount for lack of marketability (DLOM) has been factored in arriving at the fair value of the investments.
Valuation uncertainties have been factored by adjusting the company specific risk premiums.

Colliers have attached less weight to previous market evidence for comparison purposes in their assessment of the hotel and resort valuations as at 30 une 2021.

COVID-19 continues to have significant impact on both the Fijian and global economy and particularly the tourism and hotel industry.
Given the uncertainty of when COVID-19 cases would be constrained and to allow for opening of borders and international travel, the hotel valuations were therefore reported on the basis of material valuation uncertainty’.

It must be noted that the valuation assumptions undertaken by Colliers is based on its view at 30 une 2021, whilst subsequent to this, the key assumptions would have changed materially in Fiji, especially with the second wave of COVID-19.
The Discounted Cashflow method (DCF) has been adopted as the most reflective of the fair value of the Fund’s investments in hotel and resort operations.

Management assessment is based on income approach using future maintainable earnings and earnings multiples of similar industries.

Refer note 14(b) for other equity investment.

The impact of COVID-19 has been factored in the future earnings.

The Board reviews and approves the valuation undertaken subsequent to the endorsement by the BIC.
96 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 15.
Investment properties Properties at fair value Balance at the beginning of the year Transfer from(to) property, plant and equipment and intangibles Change in fair value Acquisitions Work in progress Add: lease liabilities leasehold land Balance at the end of the year 2021 $000 429,069 - (20,72) 11,960 1,549 421,826 8,888 430,714 2020 $000 38,868 (243) (2,676) 38,79 7,361 429,069 9,038 438,107 The fair values of investment properties were determined by external independent property valuers having appropriate recognised professional qualifications and experience in the location and category of the property being valued.
The independent valuers provide the fair value of the Fund’s investment property annually.

The fair value measurement for all of the investment properties has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

Investment property comprises a number of commercial properties that are leased to third parties for rental income and vacant land which are held for future development for capital appreciation.
Rolle Associates had been engaged to undertake full valuation of the property portfolio as at 30 une 2021.

The in- creased risk and the uncertainty associated with COVID- 19 were adjusted thorough the discount and capitalisation rates for the properties.

The uncertainity has also been captured through incorporating period of void in the financial projections.

This increases the risk of a material adjustment to the carrying amount of investment properties within the next financial year.
The valuer brought in a new method of estimating the fair values by using an ARGS DCF system to project a multiple range of fair values by taking into account different going in capitalisation rates, discount rates and terminal rates.

Based on the best mix of the all the rates (all rates which was most suitable for the property), the fair value was determined in the valuation report.
Impact of COVID-19 uncertainity has been captured by adjusting key elements such as the cashflows (including growth rates for income & expenditure), void losses, capitalisation and discount rates.

Valuation technique and significant unobservable inputs The following table shows the valuation techniques of the independent valuers used in measuring the fair value of investment property, as well as the significant unobservable inputs used.
Valuation technique Income approach: Discounted cash flows (DCF) In this approach the valuation models of the independent valuers consider the present value of each year’s net operating income (NOI) to be generated from the property, taking into account the expected rental growth rate, expenses growth rate and void periods (probability of tenants lease renewal).

The net operating income is discounted by applying the discount rate, sometimes called yield rate or internal rate of return (IRR).
The DCF also calculate the future selling price at the end of the 10 year period.

This is done by applying an exit capitaliation rate on the 11th year stabilied NOI.

This year the valuer developed a Discounted Cash Flow model using Argus Enterprise.

The software analyses each lease, property expenses and unobservable inputs to provide a sensitivity value matrix for indicated value range.

These values were reconciled with the other valuation techniques to come to a value estimate.
Market approach: This approach was adopted for all the land held for future development.

The market approach utilies sales of comparable properties, adjusted for differences to indicate the value for the subject.
Significant unobservable inputs Discount Rate (IRR) 8-12 Exit Capitaliation Rate 6-9 Expected rental growth 1- 2; Void period Annualised vacancy 1 - 8 Market based manage- ment fee 2-3 Expected expense growth 2-3 Land rate per acre 68k- m Inter-relationship between key unobserv- able inputs and fair value measurement The estimated fair values would increase (decrease) if: Discount rates- (IRR) were higher (de- crease); Exit capitaliation rates were higher (decrease); void periods were shorter (increase); the occupancy rate were higher (increase); Expected rental growth were higher (increase); Land rates per acre were higher (increase) F I J I N AT I O N A L P R O V I D E N T F U N D 97 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 16.
Cash and cash equivalents Cash at bank Cash on hand Cash at bank restricted Impairment provision 2021 $000 2020 $000 93,677 2,80 39 596,796 (1,109) 595,687 296,969 1,859 14,23 313,081 (1,61) 311,466 The amount includes restricted cash of 39,000 of members’ funds and government subsidy held in trust.

The funds will be disbursed subsequent to balance date to affected eligible members of the Fund.

17.
Intangible assets Software at cost Balance at the beginning of the year Additions during the year Transfer from property, plant and equipment and investment property Balance at the end of the year Amortisation and impairment Balance at the beginning of the year Amortisation charge for the year Balance at the end of the year Carrying amount At the beginning of the year At the end of the year 2021 $000 20,407 24 - 20,431 12,011 2,026 14,037 8,396 6,394 2020 $000 20,243 164 - 20,407 9,989 2,022 12,011 10,254 8,396 98 F I J I N AT , - - - - 6 7 9 1 - 1 9 0 , 3 9 8 8 2 0 4 - , 8 5 6 7 , 8 7 7 1 , 1 3 0 3 8 0 1 , 4 1 9 2 , , 1 2 7 9 - - - - - - - - - ( 0 ) 7 0 7 , 8 1 5 4 , 9 6 1 2 ( 0 ) , 9 4 7 2 0 - 4 6 4 6 8 8 ( 9 ) 9 7 - 1 3 4 ( 9 ) - - 4 9 7 8 1 2 1 5 1 1 8 7 - - , 3 8 5 5 , 1 4 2 9 4 1 3 9 , 1 1 6 3 6 , 1 9 0 9 , 2 4 0 6 4 4 , 1 5 9 4 3 1 - , 2 3 6 8 4 4 3 8 - - - - - - - 1 7, 4 1 , 1 2 6 ( 9 ) , 1 6 3 3 , 2 4 0 6 , 2 7 4 4 , 3 8 , 3 1 8 3 - - - - - 2 - - - , 3 7 1 6 , 3 9 2 3 - - ( 9 ) - 1 4 3 , 2 4 0 6 , 2 4 4 1 3 9 2 7, 9 7 1 1 8 .
P r o p e r t y , fi fi c e E u i p m e n t v e h i c l e s M o t o r fi $ 0 0 0 $ 0 0 0 $ 0 0 0 $ 0 0 0 F N P F $ 0 0 0 R I F $ 0 0 0 $ 0 0 0 F N P F $ 0 0 0 R I F $ 0 0 0 $ 0 0 0 F I J I N AT I O N A L P R O V I D E N T F U N D 99 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 19.
Other receivables Contributions receivable Impairment provision Net contribution receivable Receivable from related parties Other deposits and receivables Provision for Impairment Net other receivables Note 30(b) 2021 $000 20,403 (17,729) 2,674 10,044 76,442 (2,361) 84,125 2020 $000 18,123 (14,37) 3,748 9,871 31,813 (2,361) 39,323 86,799 43,071 The maximum exposure to credit risk at the reporting date is the carrying value of each class of the asset above.
There is no collateral held as security against any of the above receivable balances.

Maturity of gross other receivables represented as: 1 to 12 months 1 to 5 years Movements in the provisions for impairment are as follows: Balance at 1 July 2019 New and increased provisioning Provisions reversed Balance as at 30 June 2020 New and increased provisioning Provisions reversed Balance as at 30 June 2021 20.
Investment income receivable Interest receivable Provision for Impairment Dividend receivable- others Rent receivable Provision for Impairment Dividend receivable from related parties Movements in the impairment provision are as follows: Balance as at 1 July 2019 New and increased provisioning Provisions reversed Balance as at 30 June 2020 New and increased provisioning Provisions reversed Balance as at 30 June 2021 100 F I J I N AT I O N A L P R O V I D E N T F U N D 2021 $000 64,191 42,698 106,889 Contributions receivable $000 10,640 3,73 - 14,375 3,34 - 17,729 2021 $000 73,209 (1,014) ,78 959 (662) 28,187 106,464 2020 $000 27,319 32,488 59,807 Other $000 2,170 191 - 2,361 - - 2,361 2020 $000 77,82 (744) 32,217 2,183 (297) 28,288 139,499 Interest receivable $000 750 Rent receivable $000 121 - (6) 744 270 - 1,014 176 - 297 36 - 662 Note 30(b)(ii) Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 21.
Other payables and accruals Deposits Deferred revenue COVID-19 Government assistance Other payables 2021 $000 2,296 566 1,762 14,30 18,929 2020 $000 2,28 347 3,861 29,8 36,024 COVID-19 Government assistance of 1,762,000 relates to the funds received from government awaiting disbursement to members affected by the impacts of COVID-19 pandemic under phase one, phase two, phase three and Lockdowns.
Other payables includes 918,610 of COVID-19 assistance transferred from members’ accounts awaiting to be disbursed to mem- bers at reporting date.

22.

Employee entitlements Annual leave Long service leave and gratuity As at 1 uly Additional provisions recognised Paid during the year Carrying amount as at 30 une 23.
Leases (a) Right-of-use assets Balance at 1 uly Additions Depreciation charge for the year Balance as at 30 une The incremental borrowing rate for new lease was 6 (2020: 6).
(b) Lease liabilities Maturity analysis –contractual undiscounted cashflows Less than one year One to five years More than five years Total undiscounted lease liabilities at 30 June Lease liabilities at 30 June Property leases (included in investment properties and right of use assets) Current Non-Current Amount recognized in income statement Interest on lease liabilities Depreciation on right of use assets Variable lease payments not included in the measurement of lease liabilities Amount recognied in the statements Total cash outflow for leases 2021 $000 944 90 1,034 1,034 1,034 (1,034) 1,034 2021 $000 249 227 (14) 331 2020 $000 83 181 1,034 1,17 1,413 (1,36) 1,034 2020 $000 236 13 (140) 249 712 2,420 3,070 38,202 458 1,489 18,621 20,568 158 9,199 9,357 21 145 98 264 729 127 9,17 9,302 19 140 428 587 131 F I J I N AT I O N A L P R O V I D E N T F U N D 101 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 24.
Net assets available to pay benefits Net assets available to pay benefits Represented by: Liability for accrued benefits Special death benefit fund reserve Retirement income fund reserve General reserve Note 26(a) 24(a) 24(b) 24(c) 2021 $000 8,177,711 6,388,000 6,297 34,791 1,387,623 8,177,711 2020 $000 7,885,965 6,292,942 49,36 331,176 1,212,482 7,885,965 Special death benefit fund, Retirement income fund and FNPF reserves includes investment and solvency reserves.
The movements in the reserves are as follows: (a).
Special Death Benefit Fund Reserve Balance at 1 uly Add(less) transfers from(to) member benefits: Transfers from member accounts -premiums Payments to members’ nominees Add transfers from statement of change in net assets Balance at the end of the year 2021 $000 49,36 - 11,197 (7,628) 3,363 56,297 2020 $000 43,03 11,627 (8,449) 3,134 49,365 24(d) 24(e) 27 The amounts transferred to the Special Death Benefit Fund Reserve of 11,197,000 (2020: 11,627,000) represents annual deductions of 3 (2020: 3) or less from the accounts of each entitled member.
The amounts transferred from the Special Death Benefit Fund Reserve of 7,628,000 (2020: 8,449,000) represent disburse- ments to the nominees of those members who died during the year at 8,00 (2020: 8,00) per member.

These disburse- ments are in addition to the accumulated amounts owing to the deceased member.

(b).
Retirement income fund reserve Balance at 1 uly Add(less) transfers from(to) member benefits: Transfer from Transfer to COVID-19 assistance Add transfers from statement of change in net assets Balance at the end of the year Note 24(e) 24(e) 27 2021 $000 331,176 13,146 (2,243) (38) 26,70 345,791 2020 $000 322,6 11,244 (2,038) (4,301) 26,616 331,176 The Retirement Income Fund Reserve discharged a one-off payment of 38,000 (2020:4,301,000) to pensioners as a relief assistance for COVID-19.
The amount transferred to the Retirement Income Fund Reserve of 13,146,000 (2020: 11,244,000) represents new annu- ity purchases (previously stated as pension income) during the year.
The amounts transferred from the Retirement Income Fund Reserve of 2,243,000 (2020: 2,038,000) represent pension annuities to pensioners whilst amounts transferred to the Retirement Income Fund Reserve during the year of 26,70,000 (2020: 26,616,000) represents investment returns after allowing for operating expenses of 11,367 (includes impairment on financial assets of 209,966) (2020: impairment reversal of 14,000).
(c).

General reserve General reserve comprises both the legislative solvency reserve equivalent to 10 of the total benefits accrued to members of the Fund as required under the FNPF Act 2011 and an investment reserve held in order to maintain a high level of confi- dence that the legislative solvency requirement will be met at all times.
Balance at 1 uly 2019 Add transfers from statement of change in net assets Add(Less) transfers fromto liability for accrued benefits Balance at the end of the year 102 F I J I N AT I O N A L P R O V I D E N T F U N D Notes 27 2021 $000 1,212,482 163,670 11,471 1,387,623 2020 $000 1,21,761 (3,267) (12) 1,212,482 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 24.
Net assets available to pay benefits (continued) (d).

Contributions to the Fund for benefits The Fund receives contributions from members for investment, which are invested and become available upon re- tirement, or if earlier; death, permanent migration or incapacity.

The premium for the Special Death Benefit (SDB) is deducted and paid to Special Death Benefit Fund (SDBF), with benefit payable to the nominee upon death of the member while still a member of the Fund.
Members purchase annuities by transferring part or all of their FNPF balance upon retirement or incapacity (or if a sole nominee, a member’s FNPF balance on his or her death) into the Retirement Income Fund (RIF).

The allocation of contributions is set out below: Notes 26(a)(iii) 24(a) 24(a) 2021 Member contributions, net SDB premiums Purchase of annuities Total 2020 Member contributions, net SDB premiums Purchase of annuities Total (e).
Payments to beneficiaries 2021 2020 SDBF $000 RIF $000 FNPF $000 All funds $000 - 11,197 11,197 - 11,197 SDBF $000 - 11,627 11,627 - 11,627 SDBF $000 7,628 8,449 - - - 13,146 13,146 RIF $000 - - - 11,244 11,244 RIF $000 2,281 29,339 310,093 - 310,093 11,197 310,093 321,290 13,146 334,436 - 310,093 FNPF $000 79,79 - All funds $000 79,79 11,627 79,79 91,422 11,244 602,666 - 79,79 FNPF $000 493,187 430,24 All funds $000 26,096 468,312 Total benefits paid, excluding pension annuity relating to RIF, amounted to 00,81,000 (2020:438,973,000).
The details of the payments are as follows: Benefit type 1 55 years and over 2 Death 3 Disability 4 Migration 6 Non-Citiens migrating Small accounts 7-8 Partial including COVID-19 9 Housing transfers Lump-sum Supplementary Fund Total 2021 $000 2020 $000 217,917 191,798 26,61 5,080 20,847 9,085 1,883 144,948 66,866 - 26,742 3,899 24,190 9,37 1,444 117,27 ,2 24 493,187 430,524 The Fijian Government in collaboration with the Fund in response to the COVID-19 pandemic allowed members to ac- cess their General account held with the Fund.
There were separate products introduced to assist members in different scenarios with total payment from members general account of 99,644,000.

F I J I N AT I O N A L P R O V I D E N T F U N D 103 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 24.

Net assets available to pay benefits (continued) (e).
Payments to beneficiaries (continued) Total benefits exclude 13,146,000 (2020:11,244,000) being the amount transferred from FNPF to RIF in respect of FNPF members purchasing annuities.
The breakdown of payments from RIF is: 1 - Sole life annuity 2 - oint life annuity 3 - Term annuity 4 - Top up pension (in respect of pre March 2012 pensioners) - Commutation 6 - COVID-19 assistance 2021 $000 2020 $000 11,466 11,843 7,013 2,189 4,386 189 38 6,612 1,76 4,594 22 4,301 25,281 29,340 Commutation refers to the lump sum paid in respect of the unexpired portion of the guarantee period for which a de- ceased annuitant would otherwise have received payment.
The commuted sum is payable to the pensioner’s nominee on death.

25.

Transfers between funds under the FNPF Act 2011 Amounts may be transferred between funds only in accordance with the FNPF Act 2011.
Provisions include: Transfers from FNPF to RIF for purchase of annuities Deductions from FNPF for premiums due to SDBF Transfers from RIF and SDBF to FNPF to meet expenses incurred in managing RIF and SDBF respectively Repaying amounts paid in error or recovering overpayments The Board may transfer a surplus in RIF or SDBF to FNPF in accordance with the regulations.
These regulations require that any such transfer be recommended by the Fund Actuary and approved by the Reserve Bank of Fiji.

The Act also provides that the Board must allocate to RIF and SDBF sufficient assets of FNPF as will ensure that an actuary is able to issue a funding and solvency certificate in each case.

Funding and solvency certificates for each of RIF and SDBF are currently in force and no transfer from FNPF is envisaged in the foreseeable future.

26.
Net assets at balance date and liability for accrued benefits (a) FNPF Balance at the beginning of the year Add transfers from statement of change in net assets Add transfers (to)from general reserve Balance at the end of the year (i) Allocation of Benefits Allocated to Members’ Accounts Unallocated to Members’ Accounts Notes 26(a)(ii) 26(a)(iii) 2021 $000 6,292,942 106,29 (11,471) 6,388,000 6,374,608 13,392 6,388,000 Solvency requirement of 10 of member accounts Other FNPF reserve 638,800 748,823 24(c) 1,387,623 2020 $000 ,860,932 431,98 2 6,292,942 6,279,04 13,897 6,292,942 629,294 83,188 1,212,482 Net assets at end of year 7,775,623 7,505,424 The liability for accrued benefits is the Fund’s present obligation to pay benefits to members and beneficiaries and has been calculated in accordance with Note 2.16.
104 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 26.
Net assets at balance date and liability for accrued benefits (continued) (a) FNPF (continued) (ii) Benefits accrued during the year Contributions received Benefits paid Interest credited on members’ accounts Net amounts transferred: Special Death Benefit Reserve Transfer to Retirement Income Fund Notes 24(e) 24(a) 24(b) 2021 $000 321,290 (00,81) 302,769 (3,69) (13,146) 106,529 2020 $000 91,423 (438,973) 293,97 (3,178) (11,244) 431,985 The Board declared an annual interest rate for 2021 of .00 to be credited to members’ accounts as at the reporting date (2020: .00).
(iii) Movement in liability for accrued benefits: Liability for accrued benefits at beginning of year Net contributions* Benefits paid** Interest allocated to members Transfer (to)from general reserve Liability for accrued benefits at end of year 2021 $000 6,292,942 310,093 (06,333) 302,769 (11,471) 6,388,000 2020 $000 ,860,932 79,79 (441,767) 293,97 2 6,292,942 *Gross contributions less SDB premiums deducted.
Members withdrawals including amounts transferred to Retirement income Fund for RIF products purchased by retiring members.
(b) RIF Liability for future annuity payments Solvency reserve Net assets Movement in liability Liability at start of year New purchases Expected reduction for year Model and assumption changes and variation in experience Liability at end of year 2021 $000 274,301 71,490 345,791 20,839 13,146 (6,327) 16,643 274,301 2020 $000 20,839 80,337 331,176 243,490 11,244 (7,716) 3,821 250,839 The actuarial present value of RIF annuitant liabilities determined on a basis consistent with Government Bonds being recorded at face value has been calculated as 274,301,000 (2020: 20,839,000).
The valuation was carried out by Mr Peter Colin Martin, Fellow of the Institute of Actuaries of Australia, in compliance with International Standard of Actuarial Practice No.

2 issued by the International Actuarial Association.
The annual benefits payable from the RIF together with assumed expenses are projected year by year, allowing for expected life annuitant deaths and completion of term annuities and guaranteed payments, until all benefits in respect of annuitants in force at the valuation date have been paid.
The asset cashflows arising from RIF investments (Fiji government bonds and cash) are projected year by year, allowing for reinvestment of those cashflows not required to immediately finance annuity payments at an assumed market rate of interest.

F I J I N AT I O N A L P R O V I D E N T F U N D 105 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 26.
Net assets at balance date and liability for accrued benefits (continued) (b) RIF (continued) The proportion of RIF asset cash flows which, together with assumed reinvestment interest, is just sufficient to meet all projected annuity payment obligations and expenses as they fall due is then applied to the face value of RIF investments at the valuation date to determine a liability value.
The main assumptions used for the purpose of the calculation are as follows: - Mortality for male life annuitants in 2021 in accordance with World Health Organisation 2008 Fiji population life table, assuming set back 2 years from age 70 with 1 per annum reduction in male rates continuously for 8 years.
Mortality for female life annuitants in 2021 in accordance with World Health Organisation 2008 Fiji population life table, set back 1 year with further 1 reduction at all ages, and 1 per annum reduction in female rates continu- ously for 8 years.
Ongoing mortality rate reduction for males and females of 1 per annum from 2021 (Mortality for male life annuitants in 2020 in accordance with World Health Organisation 2008 Fiji population life table scaled by a factor derived by linear interpolation, with one year of mortality improvement at 1 per cent at all ages; Mortality for female life annuitants in 2020 in accordance with World Health Organisation 2008 Fiji population life table, as- suming 2 per annum reduction in female rates continuously for 11 years and set back one year, and a further year of mortality improvement at 1 per cent at all ages; ongoing mortality rate reduction for males and females of 1 per annum from 2020); - Fiji government bonds will be redeemed at the earliest opportunity; that is, up to 4 years before maturity (2020:4 years) - An average long run market rate of reinvestment of RIF asset cash flows of 4.00 per annum over the term of the current annuities (2020: .2 pa) - A continuous liquidity allowance of one year’s worth of annuity payments which does not attract interest (2020: one year) - An allowance for RIF expenses of .0 of annuity payments from time to time (2020: .
) The calculated proportion of RIF asset cash flows was 79.3.

This means that 79.3 of each RIF asset cash flow, together with interest at the assumed reinvestment rate, is calculated to be just sufficient to meet the projected in-force annuity payments and expenses as they fall due.

The liability assuming a reinvestment rate of return 0bp lower (3.

0 per annum) is calculated as 280,407,000 (81.1 of the face value of RIF investments).
The liability assuming a reinvestment rate of return 0bp higher (4.

0 per annum) is calculated as 268,640,000 (77.7 of the face value of RIF assets).
(c) SDBF Liability for claims incurred but not reported (IBNR) Provision for mortality fluctuation Catastrophe reserve Net assets 2021 $000 1,947 4,590 49,760 56,297 2020 $000 2,137 4,647 42,81 49,365 The IBNR has been calculated by the actuary using the chain ladder method applied to a run-off triangle of SDB claims by financial year of death and year of payment.
The provision for mortality fluctuation includes estimated random varia- tion and systematic impact to the expected annual SDB claims of 2,890,000 (2020: 4,647,000) and estimated additional claims related to Covid of 1,700,000 (2020: NIL) during the following financial year.

The reduction in the provision for mortality fluctuation (exclusive of Covid) is a result of change in estimation methodology, it is not a reduction in risk.
The balance in the fund is held against the possibility of major catastrophic loss of life amongst those eligible for SDB.

Fiji could suffer a major catastrophe or catastrophes, with significant loss of life.

Such a disaster causing more than two to three thousand additional member deaths is very unlikely, but not unfortunately impossible.

Consequently, the catastro- phe presents a theoretical risk to the solvency of the SDBF.

The best estimate for the IBNR liability is 1,947,000.
The actual IBNR liability will only ever be known with the benefit of hindsight but is reasonably likely to fall between 1,72,000 and 2,141,000.
IBNR at the start of the year tilied expected SDB benefit payments nutilied expected SDB benefit payments Other experience effects and assumption changes New business related IBNR at the end of the year 106 F I J I N AT I O N A L P R O V I D E N T F U N D 2021 $000 2,137 (818) (1) (113) 896 1,947 2020 $000 2,916 (73) (610) (19) 1,085 2,137 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 27.
Change in net assets available for allocation The net change for the year has been appropriated to accrued benefits and the funds as follows: Change in net assets available for allocation Allocated to: Liability for accrued benefits Special death benefit fund FNPF fund Retirement income fund 28.
Notes to the statements of cash flows (a) Reconciliation of cash and cash equivalents 2021 $000 496,552 2020 $000 320,440 (302,769) (293,97) (3,363) (163,670) (26,70) (193,783) (3,134) 3,267 (26,616) (26,483) (496,552) (320,440) For the purposes of the statements of cash flows, cash and cash equivalents includes cash on hand and at call’ deposits with other financial institutions.
Cash and cash equivalents at the end of the reporting period as shown in the statements of cash flows is reconciled to the related items in the statements of net assets as follows: Cash and cash equivalents Cash and cash equivalents at end of financial year (b) Cash flows presented on a net basis Note 16 2021 $000 96,27 596,257 2020 $000 298,828 298,828 Cash flows arising from the following activities are presented on a net basis in the statements of cash flows: (i) (ii) sales and purchases of maturing fixed interest securities; and Investment and maturity of term deposits.
29.

Commitments and contingent liabilities (a) Commitments Capital expenditure commitments ndrawn facilities in relation to mortgage loans 2021 $000 - 1,447 1,447 2020 $000 6,114 60,279 66,393 During the financial year, the Air Pacific drew on the 3.6 million noted under undrawn commitment in FY2020.

Several loans approved previously in FY2020 remained undrawn at year end.

.
.

(b) Contingent liabilities Litigation * 2021 $000 81,100 81,100 2020 $000 79,334 79,334 * The Fund is a party to a claim against once of its subsidiary – Farleigh Pte Limited.

This relates to claims for loss of entitlement under itaukei lease (Sheraton Land) which amounts to 77 million.

Furthermore, there are two cases related to same claim for damages in lieu of or in addition to specific performance by Tropic Health Investment amounts to 4 million.
The cases are pending before the high court as at the year end.

There are other claims against the fund, however these are insignificant.

The Fund has provided a Letter of support to its hotel subsidiaries for working capital purposes.

F I J I N AT I O N A L P R O V I D E N T F U N D 107 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 29.
Commitments and contingent liabilities (continued) (c) Operating lease revenue Non- cancellable operating lease rentals are receivable as follows: Not later than 1 year Later than 1 year but not later than 5 years Greater than 5 years 30.
Related parties (a) Board members The Board members of the Fund during the year were: Mr. Daksesh Patel (Chairman) Mr. Mukhtar Ali Mr. Sanjay Kaba Ms. Makereta onrote (Resigned -1 March 2021) Ms. Kalpana Lal Mr. oel Abraham Mr. Shiri Goundar (Appointed - 16 March 2021) (b) Transactions and balances with related parties Directors* Directors remuneration - fees and allowances Other services provided to the Fund 2021 $000 8,504 26,34 1,26 50,564 2020 $000 11,677 27,30 16,671 55,698 2021 $000 45 - 45 2020 $000 67 10 77 Any director who is a member of the Fund contributes and receives benefits on the same terms and conditions as those available to other members.
*Directors remuneration includes amounts paid to the directors of the Fund.

Key management personnel In addition to the directors, key management personnel are those persons having authority and responsibility for plan- ning, directing and controlling the activities of the entity, directly or indirectly (whether executive or otherwise) of that entity.
During the reporting period the following persons were the executives identified as key management personnel, with the greatest authority and responsibility for the planning, directing and controlling of activities: - Mr. aoji oroi Chief Executive Officer (Resigned 8th March 2021) - Mr. Viliame Vodonaivalu Acting Chief Executive OfficerChief Investment Officer - Mr. Pravinesh Singh Chief Operating Officer - Mr. Tevita Lomalagi Chief Finance Officer - Mr. day Singh General Manager Governance & Risk - Mr. Ravinesh rishna General Manager Human Resources - Mr. Alipate Waqairawai General Manager Member Services - Ms. Millie Low General Manager Business Transformation - Mr. Rukshan Rajapaksha Chief Information and Technology Officer The aggregate compensation of the key management personnel for the Fund comprises of short-term benefits and is set out below: Short-term benefits 2021 $000 1,781 2020 $000 1,62 108 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 30.
Related parties (continued) (b) Transactions and balances with related parties (continued) Management personnel who are members of the Fund contribute and receive benefits on the same terms and conditions as those available to other members (except in some instances the Fund contributes over and above the minimum statutory levels in line with the individual’s employment contract).

The investments and ownership interests in subsidiary companies are disclosed in Note 14(b).
During the year, further capital injection was done in Health Care (Fiji) Pte Ltd of ,723,000 and FNPF participated in the Amalgamated Telecom Holdings Pte Limited’s (ATH) share rights amounting to 86,000,000.
(i) Transactions with related parties during the year Interest income The amount of interest income from loans, current account and term deposits from related parties during the year is as follows: Vodafone Fiji Pte Limited Home Finance Company Pte Limited Natadola Bay Resort Pte Limited FNPF Hotel Resorts Pte Limited Yatule Beach Resort Pte Limited Momi Bay Resort Pte Limited Farleigh Pte Limited Barton Pte Limited Dubbo Pte Limited Grand Pacific Hotel Rental income The amount of rental income from related parties during the year is as follows: Amalgamated Telecom Holdings Limited Vodafone Fiji Pte Limited Telecom Fiji Pte Limited Home Finance Company Pte Limited Dividend income from related parties The amount of dividend income from related parties during the year is as follows: Home Finance Company Pte Limited Vodafone Fiji Pte Limited (ii) Balances with related parties at the year end Dividend receivable from related parties Vodafone Fiji Pte Limited Home Finance Company Pte Limited FNPF Hotel Resorts Pte Limited 2021 $000 3,348 8,134 7,369 339 99 8,444 4,040 ,626 590 2,173 40,162 2021 $000 56 842 693 733 2,324 11,055 12,20 23,305 2021 $000 17,763 9,024 1,400 28,187 2020 $000 3,439 8,479 7,02 340 99 8,327 3,908 3,640 311 1,39 36,927 2020 $000 63 82 693 733 2,314 4,738 22,00 26,788 2020 $000 22,00 4,738 1,500 28,288 F I J I N AT I O N A L P R O V I D E N T F U N D 109 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 30.
Related parties (continued) (b) Transactions and balances with related parties (continued) Balances with related parties at the year-end (continued) Other receivable from related parties Farleigh Pte Limited Group Dubbo Pte Limited Barton Pte Limited Grand Pacific Hotel Pte Limited Amalgamated Telecom Holdings Limited Loans provided by the Fund to related parties Natadola Bay Resort Pte Limited Momi Bay Resort Pte Limited FNPF Hotel Resorts Pte Limited Holiday Inn FNPF Nominees Limited Yatule Beach Resort Pte Limited Vodafone Fiji Pte Limited Farleigh Pte Limited Barton Pte Limited Dubbo Pte Limited Grand Pacific Hotel Pte Limited Less : Impairment provision Natadola Bay Resort Pte Limited (NBRL) 2021 $000 7 4,647 5,164 66 92 2020 $000 60 4,647 5,164 - - 10,044 9,871 2021 $000 298,990 12,179 ,839 98 2,118 71,761 83,1 127,723 14,43 42,822 772,138 (1,72) 616,566 2020 $000 291,621 117,641 5,500 98 2,02 80,000 78,867 90,209 10,217 38,938 715,116 (142,39) 572,577 Loans that were advanced to the subsidiary, NBRL for the construction of the Intercontinental Hotel and Golf Course at Na- tadola were restructured in 2011.
The loan agreements for these loans were executed as at 30 une 2014.

There has been no change in the interest rate during the current year.

Interest charged by FNPF in the current financial year is 7,369,49 (2020: 7,02,49).

The loans were restructured effective from 1 August 2011 as follows: Name Amount () Term of loan Interest rate Interest plus principal repayments Loan 1 60,000,000 26 years 8.00 Loan 2 40,000,000 26.
years 8.00 Loan 3 202,83,111 Indefinite Interest free Principal plus interest repayment commenced from 1 August 2012.

Interest only for first 18 months and principal plus inter- est repayment commenced from 1 February 2013.

All surpluses from Natadola Residential Development shall be applied to the outstanding balance.
All cash sur- pluses that are not required by NBRL for expenses other than in the normal course of the business shall be ap- plied to the outstanding balance.

FNPF reserves the right to commence charging and capitalising interest against the balance outstanding at any time in the future.

110 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 30.
Related parties (continued) (b) Transactions and balances with related parties (continued) Balances with related parties at the year end (continued) Natadola Bay Resort Pte Limited (NBRL) (continued) The carrying value of the loan has been reassessed for impairment at balance date.

The loans are secured by the securities outlined below, for which the security has not been executed as at balance date: - First registered mortgage with improvement thereon over: - TLTB reference no.
41111438, part of Sanasana and Navo Island, Tikina Malomalo, Province Nadroga; - Agreement for Lease Contract number 0034331, part of Vile, Malomalo, Nadroga; - Crown Lease 16834; - Cown lease 16833 - Cown lease 7491 - Crown Lease 9677, Lot 24, DP 4724; - Crown Lease 9662, Lot 32, DP 4724; - Approval Notice LD Ref 411710, Lot 27, DP 4724; - Approval Notice LD Ref 411711, Lot 28, DP 4724; - Approval Notice LD Ref 411703A, Lot 33, DP 4724; - Approval Notice LD Ref 411732, Lot 30, DP 4724; - Comprehensive insurance cover over the property with improvements thereon and FNPF’s interest noted thereon; - An equitable mortgage over the bank accounts of the Mortgagor and assignment of income arising out of the Hotel & Golf Operations and Residential subdivision to be effective when arrears of obligations are outstanding.
Due to the impact of COVID-19 which resulted in the closure of borders and suspension of international flights, affect- ing the operations of the Resort, repayment relief in the form of moratorium of principal and interest has been provided from April 2020 to une 2021 and further extended until 30 une 2022.

Vodafone Fiji Pte Limited (VFL) In March 2006, Vodafone Fiji Pte Limited entered into a lease agreement with the Fund for its head office.
The term of the lease was for 10 years beginning from the date of occupation and ending in March 2016, with right of renewal for a further two 10 year terms.

The lease agreement review process for additional term has been completed with the terms and conditions agreed between FNPF and Vodafone.

In 2019 the Fund had advanced a sum of 80,000,000 to VFL for purposes of capital expenditure and upgrade of its in- frastructure.
The loan is for 7 years with option to extend by an additional years.

During the year, Vodafone exercised its right to extend the loan term by an additional 1 year.

The loan is secured by a Corporate Guarantee.

Grand Pacific Hotel Pte Limited In FY2020, the fund had refinanced a loan of 39,01,789 previously held with the Bank of South Pacific.

The refinanc- ing of the loan was part of the strategy of reacquiring the remaining 7 shares in the Grand Pacific Hotel.
The loan is for a term of 15 years.

During the year, additional loan of 1,710,801 was disbursed.
Due to the impact of COVID-19 which resulted in the closure of borders and suspension of international flights, affecting the operations of the hotel, repayment relief in the form of moratorium on principal and interest has been provided from April 2020 to une 2021 and further extended to une 2022 F I J I N AT I O N A L P R O V I D E N T F U N D 111 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 30.
Related parties (continued) (b) Transactions and balances with related parties (continued) Balances with related parties at the year end (continued) Barton Pte Limited The debt novated under Barton Limited amounted to 36,980,000 as part of the Starwood Properties acquisition.

To date additional loans of 84,384,20,000 have been disbursed to Barton Limited towards the refurbishment of the Sheraton properties on the same terms and conditions as the novated loan.
The loan will mature on 24 May 2033.

The loans are secured by: - First Registered Mortgage over NL.34714 described as Lot 2 on ND.4946 being the Sheraton Property.
- First Registered Mortgage Debenture over all the assets and undertakings of Barton Ltd (This is a fixed and float- ing charge over all present and future assets, undertakings (including goodwill) and unpaiduncalled capital of the company); Due to the closure of the Resort due to renovation, a moratorium on principal and interest was granted from December 2019 to November 2020.
pon expiry of the initial moratorium period and in light of the impact of the COVID-19 pan- demic, additional moratorium was granted to 30 une 2021.

Further extension has been granted to une 2022.

Momi Bay Resort Pte Limited The loan of 120,000,000 was approved by FNPF Board on 30 uly 201 for a term of 2 years.
The loan term included a moratorium period of 2 years, and an interest only period of 1 year with principal and interest repayment over a term of 22 years.

Monthly interest only repayment on the loan commenced from November 2017, with monthly principal and interest repayments commencing from November 2018.

The loan is secured by: - First registered Mortgage over Development Lease LD Ref: 60782-3 - First registered Mortgage over a portion of Freehold Land described as DP.
10698 - First registered Debenture over all assets of Momi Bay Resort Limited - Other conditions of the Loan Agreement remains in full force and effect The Equitable mortgage over the bank accounts of the borrower and an assignment of income arising out of the Hotel operation will apply when arrears of obligations are outstanding Due to the impact of COVID-19 which resulted in the closure of borders and suspension of international flights, affecting the operations of the hotel, repayment relief in the form of moratorium on principal only has been provided from uly 2020 to une 2021 and further extension provided until December 2021.
Farleigh Pte Limited FNPF entered into a Share Sale Deed with Marriott International, Inc. and Fiji Cayman Holdings Ltd in 2018 being Star- wood Properties transaction, for the acquisition of 100 shares in Farleigh Limited, for 277,000,000 which was made up of Debt and Equity.

The debt novated under Farleigh Limited to the Fund amounted to 82,220,000, with the loan matur- ing on 24 May 2033.
The loan is repayable in quarterly installments of 1,9,932, inclusive of interest and principal.

The loan is secured by: - First Registered Mortgage over NL 34718 described as Lot 1, Denarau Island being the Westin property.

- First registered Mortgage over State Lease No.

1341 described as Lots 1, 2 and 3 on SO.370 being the Golf Course & Racquet Club.

- First registered Mortgage over State Lease No.

19370 described as Lot 9 on SO.


00 being the Dump Site and ponds.

- First registered Mortgage over State Lease No.

19371 described as Lot 7 on SO.

00 being the residential dwelling.


Due to the impact of COVID-19 which resulted in the closure of borders and suspension of international flights, affecting the operations of the hotel, repayment relief in the form of moratorium on principal and interest has been provided from April 2020 to une 2021 and further extension has been granted until une 2022.
112 F I J I N AT I O N A L P R O V I D E N T F U N D Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 30.

Related parties (continued) (b) Transactions and balances with related parties (continued) Balances with other related parties at the year end (continued) FNPF Hotel Resorts Pte Limited (FHRL) The Fund disbursed a loan of 8,000,000 to FHRL in 2016.
The loan is for a period of 10 years with quarterly repayments of principal and interest of 289,219.

Current balance on the loans is to ,839,000 (2020: ,00,000).
Due to the impact of COVID-19 which resulted in the closure of borders and suspension of international flights, affecting the operations of the hotel, repayment relief in the form of moratorium of principal and interest has been provided from May 2020 to une 2021 and further extension has been granted until une 2022.

Dubbo Pte Limited During the year, the Fund disbursed a sum of 10,217,000 to Dubbo Pte Limited towards the renovation of the Westin Resort renovations.
The loan is for a term of 1 years and matures on 30 September 2034.

The loan is secured by: - First Registered Mortgage over NL 34718 described as Lot 1, Denarau Island being the Westin property.

- First registered Mortgage over State Lease No.

1341 described as Lots 1, 2 and 3 on SO.370 being the Golf Course & Racquet Club.

- First registered Mortgage over State Lease No.

19370 described as Lot 9 on SO.

00 being the Dump Site and ponds.


- First registered Mortgage over State Lease No.

19371 described as Lot 7 on SO.

00 being the residential dwell- ing.
Due to the impact of COVID-19 which resulted in the closure of borders and suspension of international flights, affecting the operations of the hotel, repayment relief in the form of moratorium on principal and interest has been provided from April 2020 to une 2021 and further extension has been granted until une 2022.

31.
31.

Events Subsequent to the Balance Date (a) COVID 19 Pandemic The unprecedented uncertainty in the economic environment continues post year end and it is difficult to predict what the eventual impact it may have on the Fund.

Actual economic events and conditions in future may be materi- ally different from those estimated by the Fund at the reporting date.
In the event the COVID-19 pandemic impacts are more severe or prolonged than anticipated, this may have further adverse impacts to the fair value of the Fund’s investment portfolio of properties and equities and of future prices achieved if the assets are to be realised.
It may also adversely impact the level of expected credit losses attaching to loans and advances, receivables and govern- ment securities and fixed interest securities and their final realised positions, as the counterparties will all experience their own impacts of COVID-19 on their business activities and cash flows.
At the date of the release of the financial statements an estimate of the future effects of the COVID-19 pandemic on the Fund’s portfolio cannot be made, as the impact will depend on the magnitude and duration of the economic down- turn, with the full range of possible effects unknown.

The financial statements, however, reflect the best estimates of the Fund’s Board and management based on the information available at the time of preparation.
Future changes in valuations, realised values and expected or actual credit losses are non-adjusting events at 30 une 2021 and will impact on the value of net assets available for benefits and on the income statement in future periods.

The Fund will continue to assess the impact of COVID-19 and take relevant measures to respond to the evolving environment.
Further considerations in relation to the COVID-19 pandemic impact on equity valuations, investment properties valu- ations and expected credit losses at balance and in future periods are included in the respective notes in the financial statements.

F I J I N AT I O N A L P R O V I D E N T F U N D 113 Fiji National Provident Fund Notes to and forming part of the financial statements For the year ended 30 June 2021 31.
Events Subsequent to the Balance Date (continued) (b) Assistance to members The final rounds of phases 2 and 3 were completed in uly 2021 bringing to closure the partnership with Government subsidied COVID-19 assistance to affected members.

The final date of phase 2 and 3 payment is 6th uly 2021.
A total of 88,762,003 million was paid out from member’s general account and 172,276,642 million from Government top up towards unemployment benefits of affected members during the financial year.

(c) The Government in its 20212022 national budget announced the continuation of the COVID-19 assistance.
This in- cludes payments to members who have been unemployed or on leave without pay from October 2019, members whose wage rate and hours has been reduced and members who have been unemployed from anuary 2010 to September 2019 and still unemployed.

ntil 23rd August, 2021 a total of 2,63 applications have been approved.
(d) Amalgamated Telecom Holdings Limited’s (ATH) share rights issue FNPF exercised its rights to subscribe to ATH’s Share Rights Issue and acquired a total of 20,000,000 new shares at the share rights issue price of 2.00 amounting to 40,000,000.

The shares were registered to FNPF in uly 2021, whereby, FNPF would hold an equity interest in ATH of 72.7.
(e) Vodafone Fiji Limited additional loan During the year, the FNPF Board approved an additional loan of 60 million to Vodafone.

As of 30 une 2021, the terms and conditions of the loan were under negotiation.

VFL accepted the loan offer on 16th uly 2021, legal documentation executed with first drawdown of 30 million made on 10th August 2021 while second drawdown of 20 million made on 20th August 2021.
Apart from the matters noted above, there has not arisen in the interval between the end of the financial year and the date of this report, any transactions or event of a material and unusual nature likely, in the opinion of the Board members, to affect significantly the operations of the Fund, the results of those operations or the state of affairs of the Fund.

32.

Auditors The Fund is a compulsory superannuation scheme legislated by the FNPF Act and continuing under the FNPF Act 2011.
Section 13 of the FNPF Act and Section 37 of the FNPF Act 2011 requires every employer and employee to make contribu- tions to the Fund.

Team members of PricewaterhouseCoopers (PwC), the Fund’s external auditors contribute to and receive benefits on the same terms and conditions as those available to other members and PricewaterhouseCoopers contributes to the Fund as required by the Act.
114 F I J I N AT I O N A L P R O V I D E N T F U N D Labasa Savusavu Ba Lautoka Nadi Sigatoka Nausori Valelevu Suva Email Email us at information@fnpf.com.fj For complaints, compliments or suggestions you can email complaints@fnpf.com.fj.

For media queries, you can email mediaqueries@fnpf.com.fj.

Call us You can call us on (679) 3307811 or 5857 (mobile short code).

We are available 8.30am to 4.30pm, weekdays only.

We do not operate on weekends or public holidays.


Online Message us on our Facebook or Twitter pages where our support team will get back to you during working hours.

You can livechat with us on our website www.myfnpf.com.fj on weekdays.

Advocacy & Awareness If you would like us to conduct an awareness at your organisation or community groups, you can email AdvocacyTeam@fnpf.com.fj.

We can help you financially plan your retirement.

You can also contact us if you wish to have a one on one appointment.
If you would like a copy of the Annual Report or seek clarification on related matters , please reach us on publicrelations@fnpf.com.fj.

uva ead Office Provident Plaza Two 33 Ellery Street, Suva Private Mail Bag, Suva, Fiji.
Phone: (679) 330 7811 Fax: (679) 330 7611 Valelevu Agency Shop 3, Rajendra Prasad Bros Supermarket Complex, Valelevu, Nasinu Telephone (679) 330 7811 Nausori Agency Lot 1, Main Street, Nausori Telephone: (679) 330 7811 Lautoka Branch Shop 5, Provid ent Centre, 6 Naviti Street, Lautoka, Phone: (679) 666 1888 Nadi Agency Shop 2, Lot 13, Concave Subdivision, Namaka, Nadi Phone: (679) 666 1888 Ba Agency Ganga Singh Street, Ba CBD Phone: (679) 666 1888 Labasa Branch Rosawa Street, Labasa Phone: (679) 881 2111 Savusavu Agency PO Box 89, Savusavu Main Street, Savusavu Phone: (679) 881 2111 Sigatoka Branch Shop 3-4, Hanif Building, Matamata Subdivision Phone: (679) 666 1888 Follow us on