Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697724119229.pdf (Fiji)
ANNUAL REPORT 2022 Repositioning Repositioning Repositioning Repositioning Repositioning Repositioning for the for the for the for the for the future future future future future future future 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 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 Coming out of the global health pandemic, the re-opening of our borders and subsequent return to normalcy is reason enough to celebrate life, embrace opportunities and growth.
The cover photo depicts the Fund’s journey – where we mitigated and restrategised our business to support our members, pensioners and employers.

Now, we are ‘Repositioning for the Future’, the theme of our Annual Report this year.

This photo was provided by the Marriott team, property managers for the Sheraton Fiji Golf and Beach Resort (and other resorts) following the multimillion-dollar refurbishment undertaken during the lockdown period.
The fire symbolises our road to recovery – resetting, repositioning and ready for the future.

For 56 years, the Fund has been a beacon of hope and stability for thousands of Fijians and we will continue to uphold our promise to secure their future.

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.
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 Contents At a Glance 2 Highlights 3 ember Profile Case Study 6 Resolving zero & dormant account Message from the Chairman 8 Message from the Chief Executive 12 Global Recognition 16 Key 2022 events 17 Our Strategy 18 Our Scorecard 19 Supporting our members 21 23 Our Operations Member Services Benefit Payments Pension Services Contribution Compliance & Collection Legal & Prosecution 26 Our Investments Fixed Income Government Securities Treasury Term Deposits Equities Commecrial Lending Properties & Projects Case Study 32 Fiji Airways - shares acquisition Success Story 33 Government securities investment Our Enablers 34 Engaging our members Communication & Awareness 36 Managing our Risk 38 Risk Management & Business Continuity Compliance Policy & Governnance Complaints Management Internal Audit Our Governance The Board 40 Board of Directors 42 Leadership Team Our People 44 Our Structure 43 46 Our Financials 48 - 112 2022 AT A GLANCE NCENCE Net Income .8m compared to .
m in 2021 General Reserve $1.7b from .

b in 2021 Member Fund (excludes RIF and SDB) $6.7b from $6.4b in 2021 Contributions 9.

m compared to $321.3m in 2021 Total Assets $8.7b from $8.2b in 2021 Interest Credited $370.3m at 6% compared to $302.8m in 2021 at Net Increase in Net Assets (available for allocation) .
m compared to $496.6m in 2021 2022 HIGHLIGHTS INVESTMENT Defensive Vs Growth Investment Portfolio Investment Portfolio Defensive Assets Growth Assets Total Investment Portfolio Fixed Income Commercial Lending Equities Properties Cash & Term Deposit 9 8 7 6 5 4 3 2 1 0 n o i l l i b $ n o i l l i m $ FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Interest Credited to Members Return on Investment (Net) Portfolio Growth 400 6.75% 350 6.35% 6.00% 5.00% 5.00% n o i l l i m $ 300 250 200 150 100 50 0 8.6 8.1 7.9 7.4 6.6 9.1% 8.6% 7.4% 6.1% 4.1% 6.90% 5.90% 4.90% 3.90% 2.90% 1.90% 0.90% 10.0% 8.0% 6.0% 4.0% 2.0% -0.10% 0.0% 10 9 8 7 6 5 4 3 2 1 0 n o i l l i b $ FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 ROI-Net 9.1% 8.6% 4.1% 6.1% 7.4 HIGHLIGHTS BENEFITS $467m paid out to members during the year Early* Housing $64.4m $144.9m in 2021 $78.5m $66.9m in 2021 Retirement Death Disability Migration Small Account $209.8m $217.9m in 2021 $48.3m $34.2m in 2021 (includes SDB) $5.6m .
m in $42.9m $29.9m in 2021 *For breakdown of early withdrawals accessed by members in 2022 please turn to page 24.

$17.5m $1.9m in 2021 (includes Low Balance Account) CONTRIBU TIONS Net Contribution The bar graphs below show the increase in additional and voluntary contribution paid during the financial year.
Contributions less Benefit Payments Additional Contribution Voluntary Contribution 1,200 1,000 n o i l l i m $ 800 600 400 200 0 (200) 284.2 296.2 .

 .

 .

 438.9 .8 467 .9 99.9 9.

 321.3 9.

 -9.
-9.

 -71.8 2018 2019 2020 2021 2022 Contributions Benefit Payments Net Contributions 4 A N N U A L R E P O R T 2 0 2 2 10,715 ($22.7m) 6,596 ($6.3m) 356 ($14.7m) 455 ($19.4m) 6,632 ($4.8m) 12,242 ($20.1m) 2021 2022 2021 2022 Employer Additional - No.

of employers & value Employee Additional - No.

of employees & value (Incusive of payments through walk-in, myFNPF app and/or bank deposits).
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 MEMBER PROFILE 214,536 Contributing Compulsory members 41% 41% 59% 12,242 Contributing Voluntary members 45% 55% MEMBER SHIP 398,593 compared to 446,658 in 2021 SHARE OF WEALTH Gender All members 57% 43% 43% Count 43% 57% Share of Wealth 35% 65% MEMBER BALAN CES BY AGE Member Balances ≤ 15yrs 16-24yrs 25-34yrs 35-44yrs 45-49yrs 50-54yrs ≥ 55yrs Zero Balance 21 2,989 1881 909 289 223 Total 6,886 .
and ,.

 1,242 46,032 ,8 42,391 14,441 8,974 10,739 191,204 ,.

 and ,.

 20 2,616 46,168 37,776 12,232 $20,000.01 and $40,000.00 $40,000.01 and $100,000.00 ,.
and ,.

 ,.

 and ,.

 ,.
and above 1 1 24 13,824 20,140 3 2 3,218 16,296 137 2,372 2 8 6,673 7,102 2,319 217 40 ,89 , , , 79 ,8 , 1,407 47,382 , 33,441 793 222 141 8,197 941 8 GRAND TOTAL ,8 , , 120,094 43,313 30,902 18,718 98,9 PENSIONERS Pensioners by Age Group & Gender 2 3 21 76 16 60 218 235 455 586 817 878 676 512 178 26 916 857 730 660 9 yrs 90 - 94 yrs 8 - 89 yrs 80 - 84 yrs - 9 yrs 70 - 74 yrs - 9 yrs 60 - 64 yrs - 9 yrs yrs *This includes 19,145 Voluntary members EMPLOYERS 9000 Active Employers 8000 7000 6000 5000 4000 3000 2000 1000 0 8, 8,677 7,901 7,968 7,732 1,134 , 966 712 793 2018 2019 2020 2021 2022 Active* employers Active* new employers *These employers are those that paid their employees contribution at least once during the financial year.
CASE STUDY RESOLVING ZERO & DORMANT ACCOUNTS The Fund has dealt with dormant accounts for years, similar to other financial organisations.

Specifically, it is those accounts with ero balances, with no contributions received and have continued to increase over time.

In 2021, the number hit an all-time high of about 60,000, constituting a considerable portion of our total membership.
The outcomes of the analysis led to the following results 1.

91% of accounts had been inactive for at least seven years; .

 were identified as duplicated, null, or withdrawn accounts; and 3.

2% were categorised as deceased members after validating data with BDM records.
In addition to misrepresenting our overall membership, it also distorted our most important statistical measures which may have affected the reporting of policy progress and transition made through the years.

As highlighted in the 2021 Annual Report case study, the Fund was legally unable to close a dormant account with a zero balance till after a specified time of inactivity.
Only one of our entitlement events specified in Section 36(6) of the FNPF Act of 2011 and particularly identified in Section triggered the closure of member accounts.

Noting the outcomes of the analysis, the following decisions were agreed on 1.

Seek an amendment of Section 36(6) of the FNPF Act of 2011 as this would allow the Fund to terminate inactive accounts.

This was proposed to Government and the law was enacted as part of Bill 42 of 2022 that came into effect on 1 August, 2022.
This would affect around , accounts 2.

Duplicate and null accounts were then deleted; and 3.

Other account statuses were updated or categorised accordingly in accordance with the Funds member definition table.

To solve the issue, the exercise had to be structured as a project outlining the necessary procedures, risks, and scope, with potential solutions periodically presented to a project steering committee for approval.
In resolving the issue, the Fund undertook the following to find potential defined solutions 1.

Aged the accounts to determine how long the zero-balance accounts have been inactive, ensuring alignment to relevant laws and regulations.

2.

Detected duplicate accounts, withdrawn accounts that remain active, and accounts in null status for failing to register a single contribution since opening; and .
Identified deceased members that have not been reported to the Fund and whose accounts have remained active.

This has been an outcome of a data sharing initiative with the Office of the Registrar of Births, Deaths and Marriages.

As a result of this exercise, a new member count has been recorded; overall membership is currently 398,593 compared to 446,658 in 2021.

Although it is a 10.8% decrease, this accurately represents the FNPF membership count.
As the Fund embarks on a new course to reset itself, striving for growth and relevance; data, definitions, and categorization have proved their importance in a technologically and information-driven world.

We realise the need to increase our capabilities in this area and would strive to bring it to the forefront in order to understand our members and improve our services to them.
embers and pensioners read the Funds financial report during the Annual ember Forum held at the Grand Pacific Hotel last year Message from the CHAIRMAN It is remarkable to cast our minds back and think that only 12 months ago we were at the height of the COVID-19 pandemic and the future seemed uncertain.
I am very pleased to be writing this report at a time when our organisation, and our community, is well down the path of recovery from the impacts of the pandemic.

The journey during the past year was not easy as it required us to reset our sails a few times but we can now claim to have succeeded.

We have recorded high investment returns and declared another year of positive interest for our members.
Despite the challenges brought about by the reduction in contribution rates and subdued economic activity, the Fund’s achievement has been quite remarkable; as further elaborated in the Chief Executive’s message.

The Board is cognisant that while the economy is recovering, we now have to deal with fresh challenges.

The impact of the Ukraine-Russia conflict has sent ripples through the global economy and the cost of living and inflation is at an all-time high.
On a more positive note, the tourism industry is slowly improving, and the challenge is to now look beyond Fiji’s shores for opportunities and solutions that will contribute to our efforts to safeguard the future of FNPF members.

We must remain ahead of our game The Fund invests in opportunities that align with our long-term plan for sustainability and growth while remaining responsive to the changing economic environment.
All investment 8 A N N U A L R E P O R T 2 0 2 2 decisions are made following extensive and rigorous due diligence processes.

We will continue to expand on our initiatives to increase the Fund’s portfolio of growth assets (both domestic and foreign), diversity, and climate-friendly investment opportunities in accordance with international standards and Environmental, Social, and Governance (ESG) practices.
The legal environment of superannuation has continued to develop across the world, and Fiji is no exception.

We are assessing the legal frameworks that regulate the FNPF and have evaluated modifications that may assist the Fund to accomplish its objectives and serve our members more effectively.

We are aware that the viability of superannuation benefits has been questioned in recent years, as well as the ongoing tension between retirement savings and early retirement withdrawals.
We will endeavour to adopt a realistic attitude for the future.

In regards to retirement savings, members must maintain control over their own destinies.

Eligibility for a pension is not an issue of charity or the possible enjoyment of another’s generosity.

It is something for which employees have exchanged a substantial amount of value through their labour and contributions.

For some members’ their FNPF funds are among their most valuable assets.
Our major responsibility at FNPF is to continue securing the future of our members by growing their FNPF funds for retirement.

Our major responsibility at FNPF is to continue securing your future and growing that asset (your FNPF funds) towards your retirement.

Strong & steady road towards recovery The Board strongly supports the reinstatement of the 18% contribution rate and on multiple occasions has approached the Government on this issue.
We have noted Government’s pledge to gradually boost mandatory payments, which is currently 12%, and would increase to 14% from 1 January, 2023.

We applaud the increase and will constantly pursue this matter in the best interest of our members.

Our efforts in the telecommunications industry saw a significant breakthrough this financial year, when we effectively entered the PNG market, the largest market in the Pacific excluding Australia and New Zealand).
The Fund’s investments in Papua New Guinea through ATH and Digitec PNG demonstrate our ongoing commitment to expand our regional telecommunications footprint.

During the pandemic, the telecommunications industry was a hive of activity, and business remained unaffected, since mobile connectivity played a crucial role for families during lockdowns.
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 A staff member of the Sheraton Fiji Golf and Beach Resort during the re-opening of the refurbished resort earlier this year.

The Fund’s strength is in its investments in major strategic assets that not only generate significant returns but are also transformational for the nation.
This includes our investments in the healthcare sector, which will benefit members through the availability and progress of tertiary healthcare locally and the establishment of a medical tourism industry while also providing attractive investment returns.

As tertiary healthcare is now available in Fiji, we should anticipate a decrease in the outflow of FNPF savings to finance the expenses of members requiring tertiary healthcare abroad.
identifying attractive investment opportunities that will contribute to the decarbonisation of the economy.

We would also seek strategic investment opportunities in renewable energy focusing on circular economy activities that supports environmentally sustainable programs.

A major focus for 2023 is the development of an Environment, Social and Governance framework that would ensure the alignment of all future investments to good governance and social responsibility practices.
As part of the previous Board’s initiative to invest in a healthcare facility under the Public Private Partnership and Healthcare Fiji, we continue to pursue this with eagerness, in spite of the complexities brought about by the pandemic and its impact on supply chain.

The Fund is focussed on As a major player and leader in the investment and financial market, FNPF is acutely aware of the critical need to benchmark for responsible investing.
In further enhancing the independency of our investment decisions, the Board has now engaged a renowned investment firm in Australia to review our Investment Policy Statement.

In addition, the Fund will employ a full time independent investment advisor to the Board.

Investment in Fiji Airways As part of FNPF’s strategic positioning within the Tourism sector the Fund took the opportunity to acquire 30.02% equity in Fiji Airways.
The Fund reached this decision after seeking independent reviews and carrying out extensive due diligence to ensure its investment in Fiji Airways was executed on attractive terms and providing maximum benefits to our members.

Setting the controls for effective recovery In May 2022, the Fund convened a workshop to develop a five year strategic plan with the assistance of an accomplished advisor to the FNPF Board, who holds substantial superannuation industry experience.
Viliame – a staff of the Sheraton Fiji Golf and Beach Resort teaches these young guests weaving skills.

We conducted this planning exercise with key stakeholders, namely the Fiji Trades Union Congress, Fiji Commerce & Employers Federation, the Reserve Bank of Fiji and Government.
Themed “Resetting and Repositioning the Fund to Beyond”, our FY2023 – FY2027 Strategic Plan focuses on recalibrating our approaches to address the imminent operational and financial challenges and opportunities to bolster our growth trajectory beyond 2027.

During the COVID-19 outbreak 160,000 FNPF members tapped into their retirement funds for COVID assistance.

That was a large proportion of our current membership base.
While we acknowledge that withdrawals were necessary during the pandemic to assist families with acute financial needs, the FNPF’s primary mission is to always safeguard its members future savings.

To ensure that members continue to safeguard their retirement assets, we are collaborating closely with the Government to establish controls and disciplines via legislation and other measures that may be implemented in the field of social security.
In the future, it will be of utmost importance to examine the reasons for withdrawal permitted on members’ savings.

To propel our members toward target balances for a financially secure retirement, we must re-examine whether any of the reasons currently permitted for withdrawal should be modified or eliminated.
We acknowledge that by law, our members are entitled to withdraw their funds during their working life and in that regard, FNPF will continue to advocate the need for members to save for retirement.

Remaining vigilant and prepared While it feels at times that we are in a perpetual cycle of global crises, we are optimistic about the Fund’s performance and the opportunity to maintain a sustained upward trend in performance.
However, we are aware of the need to not be complacent and to remain vigilant regarding the risks posed by global events.

One area of ongoing focus is ensuring that the Board operates to best serve the interests of members.

To this end, in the coming year we will be seeking external assistance for a governance review with the objective of ensuring that the Board operates to the highest possible standard of corporate governance.
I am thankful to the courageous and devoted men and women of the FNPF Management and Staff, as well as my fellow Board members, who worked well through the obstacles and challenges during the year.

I would also want to thank all our stakeholders for their support along this journey.

Let’s continue to work together to secure the future of our members.
Daksesh Patel Chairman 10 During the pandemic, the Fund’s investment in the telecommunications sector fared quite well.

Seen in this photo, is a Telecom Fiji Limited staff setting up internet connection for a family.
A N N U A L R E P O R T 2 0 2 2 11 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 Message from the CHIEF EXECUTIVE As we reach the end of 2022 and look forward to 2023 one cannot fail to acknowledge but be thankful to the Almighty God, the creator of heaven and earth for his love and blessing that has enabled the Fund to withstand one of the most difficult periods in history.
The past year has been challenging for our members and businesses, as we have had to adjust to a pandemic that has altered our lifestyle and routines.

As we have seen throughout the years, despite the fact that it has not been easy, our people have been strong and resilient.

What a year it has been to manage a well valued organization, with such high expectations from members!

I am appreciative of the Chairman and Board of Directors’ trust in me to lead FNPF.
Due to COVID-19, we began the year under difficult conditions, with limitations on our travel and social interactions.

With the easing of restrictions and return to normalcy, the second half of the year brought us some respite.

We applaud the efforts made by the Government, the Ministry of Health, donor countries and agencies, NGOs, civil societies, and the general public to battle the pandemic.

The assistance offered to keep members afloat and the attempts to achieve economic recovery are acknowledged.
At FNPF, we are happy with our response and reassured by the fact that our members received assistance during one of the most difficult moments of their lives.

In the middle of the global crisis, it was unquestionably a challenge to maintain focus and fulfil our commitments while juggling our responsibilities.

The test of time COVID-19 has pushed us to rethink and reset our assumptions and priorities.
The pandemic thwarted our retirement savings objectives, as members were Figure 1: Return on Investment (Gross) 10.0% 9.6% 9.0% 7.8% 6.5% 4.5% 8.0% 6.0% 4.0% 2.0% 0.0% FY18 FY19 FY20 FY21 FY22 12 A N N U A L R E P O R T 2 0 2 2 FNPF has a history of producing strong returns; this means we make sound investments, which enables us to pay our members consistently competitive interest rates.

forced to withdraw from their funds.


This was exacerbated by decreased contributions, growing unemployment and extended periods of unemployment benefits, particularly for members with low account balances.

A issue we face in enhancing member outcomes.

The pandemic has demonstrated that nothing is ever certain, and that our models and operational design must be more adaptable and sustainable.
Negative net contribution position As a result of the cut in contribution rate from 18% to 10%, collection was low.

Although, it was 23.7% more than the 2021 estimates, withdrawals were significant at million, resulting in negative net contribution yet again.

Additional & Voluntary contributions, brought in a total of $62.2 million to offer a cushion to our financially challenged cash flow position.
Risks and Abnormal Trends Liquidity topped our list of major strategic concerns but they were effectively controlled allowing the Fund to continue meeting its obligations.

As a result of the hotels and resorts returning to full operation before the end of the year, the value of FNPF’s assets has increased.

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 FNPF staff Ulamila Bukebuke serves a member at our Sigatoka Agency.
On the other hand, a telling trend emerged from withdrawals made on the grounds of Death.

The total amount paid out in 2022 was $48.3 million, an increase from the $34.2 million paid out in 2021 but less than $30 million for the amounts paid in previous years.

Withdrawal requests on the grounds of Death were received from , members, an increase from 1,490 in 2021 but fewer than 2,000 for previous years.
Government bond rates decreased dramatically throughout the course of the year, impacting current long- term yields as well, as a result of high liquidity in the financial system.

The Retirement Income Fund, which oversees the pension business, forecasted reduced returns, which is insufficient to sustain the present conversion factors for new annuitants.

This may lead to a probable decrease in annuity rates.
However, we will evaluate all possibilities and work closely with the Government to determine the best course of action.

Delivering despite the crisis Return to Members The returns on our investments are a testament of our business astuteness.

The Fund’s investment revenue increased by 19.7% from last year, allowing us to distribute $370.3 million in interest to all members’ with positive account balances, with a 6% interest declaration compared with in .
FNPF has a history of producing strong returns; this means we make sound investments, which enables us to pay our members consistently competitive interest rates.

COVID-19 Support & Pre-retirement benefit for members FNPF’s COVID-19 assistance withdrawals were extended for the third year in a row.

Payments totaling $22.8 million were for COVID-19 unemployment withdrawals and $10.1 million for COVID-19 housing assistance.
Micro-Business Withdrawals Assistance was designed for members who had ventured into SME projects, expand an existing one, as well as those wishing to reopen or revive their business.

A total of $0.71 million was disbursed to these members.

These grounds for withdrawal were purposefully offered to mitigate the impact of the crisis on members.

The social and economic impact on our nation exceeds the amount of savings distributed.
As we are all experiencing a crisis of this magnitude for the first time, many people had no alternative support options.

The cost of not offering any assistance was unfathomable.

We took stock and helped out.

Our members needed us and we were there for them.

The Fund continued to provide pre-retirement benefits for funerals, medical, educational, and housing expenses, as well as all other customary full withdrawal grounds.
Resolving zero balance accounts A key matter the Fund resolved during the year was the managing of FNPF accounts with a zero balance.

A N N U A L R E P O R T 2 0 2 2 13 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 These accounts made up a significant number of the total FNPF membership count, therefore portraying an inaccurate picture of our members profile.
In the Annual Report, we outlined in a Case Study how these accounts were derived and our commitment to resolving it this year.

as members have established small enterprises as part of SME’s.

These members are being encouraged to join our voluntary membership program so that they could continue to save for retirement.

This is the impact of this benefit.


Although the exercise has notably reduced the total membership count by 10.8%, our indicators would now reflect the right indices that measures our policy intervention and performance.

A Case Study on the approach to the resolutions are provided on page 6 of this Annual Report.
A future of recovery, rebuilding and sustainability Sustainability and adaptability are a priority that must be incorporated into our operational design and model to guarantee that we can respond effectively and adapt to whatever circumstance we encounter and that the Fund will continue to exist for its members in the future.

Immediate emphasis is placed on restoring member balances, necessitating a review of our contribution collecting platforms.
The overall number of active members for the year is , compared to , in .

Of these members 12,242 are active voluntary contributors, compared to 6,632 in 2021.

There were 8,000 active employers contributing to members’ retirement before the outbreak.

At the end of June 2022, about 7,700 enterprises, of which 793 are newly registered, are still operational.
Approximately of firms have taken advantage of government incentives by paying the maximum 18% contribution while the majority have opted for the lower 12% rate.

As a result of the pandemic, the non-formal sector has grown rapidly Fijians have also joined seasonal workers and long-term job programs abroad.

The Fund continues to advocate on the need for these members to contribute to their FNPF savings so that they are able to save for life after work.
With the aim of resetting and repositioning the Fund, we have prepared a -year strategy to guide our future orientation.

It will focus on recalibrating ways to manage the Fund, which will enhance the results of our mandated duty as well as tackling pressing concerns at the heart of some of our current challenges.
These include low member balances, providing suitable products to meet member demands both pre- and post- retirement, diversifying our assets in a constrained Fijian market and guaranteeing the long-term viability of the FNPF funds.

Perhaps the most important issue is addressing the clarity of our position to ensure that we continue to work closely with the Government to fulfil our primary goal which is to promote and improve the retirement outcomes of our members.
After putting a hold on our advocacy and engagement initiatives for more than a year, we are pleased to reintroduce the program to campaign and educate members on the importance of retirement savings.

We will increase the number of planned interactions and expect to reach more members in the coming year.

We will also push for the protection of their funds and the strengthening of the Government’s coordination of social security and retirement issues.
Recognition and appreciation As we strive towards recovery and leave the spectre of COVID-19 behind us, it is only fitting that I thank members for their patience over the past two years as we have united as a country to combat the pandemic.

Despite the obstacles faced, the fuel for our delivery was their unwavering faith and confidence.
I thank the diligent FNPF employees for demonstrating tremendous courage and care under extreme conditions in order to serve Fijians and dutifully respond to the call of our nation to give assistance, despite the risk to their own lives.

We convey our thanks to the Government and acknowledge their assistance and leadership in guiding the nation through difficult times.
The fact that we were one of the first nations to return to normality is testament of the tremendous effort that has been accomplished by all.

I am grateful to the Board Chairman, Mr. Daksesh Patel, and the Directors for their counsel and direction as well as to the Management team for managing the Fund’s operations.

The Directors have definitely pushed us to be better, stronger, and eager to lead the FNPF to greater heights.
Members can take comfort in that the Fund is in good hands with the existing Board.

Now, the goal is to rebuild smarter, in order to properly recover from the lingering effects of the COVID-19 pandemic, so we can shape a better tomorrow.

Viliame Vodonaivalu Chief Executive 14 Retirement planning can be quite fulfilling when done right.
This is one of the Funds marketing material that focussed on additional contribution.
A N N U A L R E P O R T 2 0 2 2 15 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 Mr Viliame Vodonaivalu Chief Investment Officer and Acting CEO Fiji National Provident Fund Plaza 2 33 Ellery Street Private Mail Bag FJ- Suva Fiji 5 November 2021 ISSA/GPA/ASIA-PACIFIC 2021 Results of the competition for the ISSA Good Practice Award for Asia and the Pacific 2021 Dear Mr Vodonaivalu, I am writing to thank you for your organization’s participation in the competition for the International Social Security Association (ISSA) Good Practice Award for Asia and the Pacific 2021, and to inform you of its results.
The independent international Jury met on 23 August 2021 to decide on the winner of the Award as well as the recipients of the ISSA Certificates of Merit with Special Mention, Certificates of Merit and Attestations.

A total of 168 entries were received from 30 members in 19 countries from the region.
I am pleased to inform you that the Jury has awarded the following good practice entries - A robust and sound mechanism for guiding the crediting rate determination A case of the Fiji National Provident Fund Delivering COVID-19 income protection assistance: The Fiji National Provident innovation and data - Developing in-house actuarial function and strengthening actuarial governance Fund story A case of the Fiji National Provident Fund I would like to express my sincere congratulations to you and your colleagues on this important achievement for your institution.
of your organization: Certificates of Merit insight during a - Collaboration, time of need of our efforts to benchmark with best practices and assurance from ISSA, the world’s leading international organisation for social security institutions, government departments and agencies.

Global recognition The Fiji National Provident Fund has once again been recognized by the International Social Security Association (ISSA) and received Good Practice Awards for the Asia and Pacific region on 23 August, 2021.
Of the 168 entries received from 30 members in 19 countries from the region, the Fund was awarded Certificates of erit for the following (1) A robust and sound mechanism for guiding the crediting rate determination A case of the Fiji National Provident Fund (2) Collaboration, innovation and data insight during a time of need Delivering COVID-19 income protection assistance The Fiji National Provident Fund story (3) Developing in-house actuarial function and strengthening actuarial governance A case of the Fiji National Provident Fund.
The Fund received similar awards in 2018 for its responsiveness to stakeholders’ needs, as well as developing online services for ease of business.

FNPF was awarded Certificates of erit on ‘Transforming and reforming its services via an integrated administration IT system’ and Internal Audit good practices awards for ‘Quality Assurance and Improvement Programme’ and ‘Internal Audit Staff External Secondment Programme in .
The Fund achieved a milestone in 2012 by becoming the first superannuation fund in the Pacific to receive two merit awards from the ISSA for Good Practices award for “Reforming the Fiji National Provident Fund Pension Scheme” and for “Promoting External Financial Literacy.” The FNPF is honoured to have received these recognitions; as these are a testament 16 Key 2022 events 7 FNPF partners with Home & Living for Mother’s Day event with Loloma Home & Care Centre residents in Nadi.
11/12 Board and Executive Management Strategic Planning workshop 14 - FNPF Nationwide Clean Up Campaign (Suva, Lautoka and Labasa) 3 myFNPF app enhanced to accept Funeral and Advice of Death applications 16 Opening of the newly refurbished Sheraton Fiji Golf & Beach Resort 24 FNPF Board declares 6% interest Integration to Internet Payment Gateway (IPG) 29 FNPF acquires 30.02% shares in Fiji Airways 8 Ba Hospital opens to the public - under Health Care Fiji, a Public Private Partnership June 2022 May April March February 14 Unemployment COVID relief ends - FNPF reverts to normal Unemployment withdrawal 18 - Savusavu Annual Member Forum 19 - Labasa Annual Member Forum 19 -Launch of the Retirement Calculator & Pension Estimator 1 Compulsory contribution rate increase to 12% January FNPF signs O with Fiji Cooperative Dairy - enabling farmers to join as Voluntary members 26 Cabinet passes 2021 FNPF Annual Report Aug - Sep Government- funded Unemployment assistance outside Viti Levu December November Lautoka Member Forum at RSH Hall 1 3 Nadi Member Forum at myFNPF Centre 6 myFNPF Centre in Nadi opens to the public Suva ember Forum at Grand Pacific Hotel 31 COVID-19 Home Loan Assistance ends October September August July 2021 11 Microbusiness relief opens 31 Round 1 and 2 of Government-funded Unemployment assistance outside Viti Levu ends 11 Board announces the appointment of Viliame Vodonaivalu as FNPF CEO 16 FNPF increase withdrawal limit for Low Balance Account full withdrawal to $10,000 (formally Small Account) Awarded ISSA Certificates of erit A N N U A L R E P O R T 2 0 2 2 17 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 Our Strategy Operating in a disruptive and an abnormal environment over the past couple of years has necessitated the need to reimagine and restructure our approach to plan and work.
The outcome is the development of a new five-year Strategic Plan.

Centered on the theme “Resetting and Repositioning the Fund to Beyond”, our FY2023 – FY2027 Strategic Plan is aligned towards excelling our members pre and post retirements needs and expectations.

We would collaborate with all stakeholders, be it members, employers, relevant institutions or Government to address areas of concerns.
Motivated by our passion to improve the quality of life of members, our Plan is ambitious but we are confident of our capacity and ability to succeed with established frameworks and related work to assist in elevating our performance and delivery.

VISION - Securing Your Future MISSION - To understand our customers, offer quality services and ensure sustainable returns for a meaningful retirement STRATE GIC ASSUMPTIONS Challenges Trends & Key Drivers Operating Environment Operational Challenges i.
Clarity on FNPF Role ii.

Low Member Balances iii.

Relevance of Our Products iv.

Low Retirement Products Take Up Rate Financial Challenges i. Sustainability of Life Pension ii.

Negative Net Contribution Cashflow iii.

Investment Diversification in the ocal Market & Exit Strategies i.

Embracing ESG (Environmental, Social & Governance) ii.

Recognizing Changing Employment Pattern and Arrangement iii.

Adaptable Scheme Design & Operating Model iv.


Digital Technology Revolution v. Stakeholder Engagement & Collaboration STRATE GIC FOCUS A REAS COVID-19 implications Disruptive operation Economic recovery efforts & policies i. ii.

iii.

iv.

High Inflation v. vi.

Global economic volatility vii.

Legal and Policy framework changes viii.

Threat of natural disaster and climate change ix.
Retention of people Resurgence of a health crisis or pandemic Member Centric & Experience Responsible Investment & Performance Simplicity & Operational Efficiency Growing & Engaging Our People Protection & Sustainability Demonstrates the Fund’s commitment to serve and deliver with excellence to fulfil our obligation and exceed expectation Our Investment direction is about sustainable, resilient and responsible investments that generate organic returns for the Fund today and in the long-term Offer a satisfying experience by enhancing our practices and processes Simplify and improve our product offering Provide tools that empower members levate our services and interaction platforms.
FNPF will commit to investments that are ethical We will take measured approaches to grow the Fund taking into account the impact on the environment and society Our strategy is centered on Diversity, ESG, Resiliency and National Development.
The Fund will drive digital innovation that offers simplicity and efficiency for our members and employees We aim to elevate the experiences of our members through all our digital modes To enable our members and staff to be part of an innovating and technological savvy organization.
To review our Governance and legislative provision to support our strategic direction, protect the policy framework governing the objective of the Fund and stay abreast of the ever-changing environment We will review our governance and risk framework to develop a balance model that is adaptable, and supports our purpose as enshrined in our legislation.
A fundamental aspect of our journey is on translating the changes so we can manage and engage our people better We would create a conducive working environment that nurtures the right behavior and encourage growth nsure we improve the wellbeing of our people, promote a balanced lifestyle that enable them to thrive and have a personal connection to our purpose Build the skills of our people to create leaders that inspire, and establish a culture that is rooted to the core of who we are and what we stand for.
18 Our Scorecard for 2022 KEY PERFORMANCE INDICATORS RATIONALE FOR MEASURE PERFORMANCE REPORT PERFORMANCE COMMENTS Grow Member Balances Declaration of 5% crediting interest rate to members Reflects how we managed member funds and the returns we are able to provide to grow members’ savings.
Drive for collection of additional contribution (Employee/Employer & Voluntary) Improve Net Contribution Position (Difference between Contribution collected and Early retirement payments) To drive additional contribution from members to pay on top of mandatory amount to increase their savings and importantly as a measure in the year to support and sustain cashflow position.
Improving the net contribution position was key to cushion the impact on cashflow - noting the reduction in contribution rates and increase in benefits paid out to members due to COVID-19 related measures and unemployment; 6% $62.2m ($71.8m) The successful performance of the Fund in the year enabled a 6% interest credited to members, above the target of .

Above the target of $60 million.

 mployee Additional - .
m mployer Additional - 9.

m oluntary Contribution - .

m The past two years have been in a negative position due to the impact of COVID-19 and this year it improved by .9.

The target was to reduce the negative position from 9.

m in to $100m in 2022.
Investment Net Income Return on Investment Funds Under Management Measures how well we have managed member funds to earn sustainable returns to grow members balances.

.8m 7.4% $8.6b Achieved above target of $414m calculated against a subdued environment.
Achieved above target of 6% Growth of 6.1% from 2021 Investment Performance Enhance Member Experience Enhance digital platforms to members To enhance members non- face-to- face service experiences with the Fund through our digital platforms Completed Resolved 80% of Complaints on time Ensuring that member complaints are attended to on time and complaints are kept within the acceptable level Achieved Customer Service Satisfaction Index of 4% Assess the measure of our delivery of services, performance and meeting our fiduciary obligation.
93% 3.97% Reporting & Disclosures Upgrade of mobile app enabling members to access of early retirement withdrawal products submission as well as contribution payment for voluntary and additional contribution through M-PAiSA and BSP.

Improvements were also made to both the Employer and Member portals for the payment of contribution process and online services.

Achieved above the target of 80% set based on COID-9 restrictions and online service influx.
A 99% satisfaction rate based on a target of 4% out of a maximum satisfaction rate of .

With room for improvement, the target will be staggered up in coming years to reach the ideal position.
Publication of Annual Report Conduct Annual Member Forum Quarterly Report to Government Statutory Actuarial Reports Reporting on the Fund’s annual performance and financial statement Hold annual forums to discuss the Fund’s performance with members Providing key statistical and quarterly performance of the Fund to Government and reporting on key retirement matters for policy decision Ensure that estimates of liabilities are projected annually to maintain actuarially sound financial reporting of the Fund.
Completed Completed Completed Completed within 4 months of the end of the financial year Carried out between the months of November to February in major centers across the country.

FY was the first year the Fund consistently started to provide quarterly reports to Government as part of improving collaboration on matters of retirement and national interest.
Completed All key ‘Valuation Reports’ and ‘Funding and Solvency Certificates issued by the Fund Actuary in the year.

A N N U A L R E P O R T 2 0 2 2 19 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 Adhering to COVID-19 protocols – the Fund as an essential service provider, ensured that staff and our customers followed the required safety measures.
20 Supporting our members Ane Tiko – a tourism industry worker – was amongst the thousands who found themselves without jobs during the pandemic.

She used her FNPF COVID-19 relief funds to start a canteen business at Nacula Village in Yasawa.

With borders opening in 2021 and businesses transitioning out of a pandemic stricken situation, COVID-19 support for affected members also began to wind down.
(Phase 4) and voluntary members received $4.4 million.

This assistance closed early this year in February 2022 as the Fund resumed its normal unemployment assistance.

Whilst the lockdown relief and support for pensioners and employers ended, the Fund continued to offer Unemployment relief for Phase 2 (unemployed from October 2019, Phase 3 (reduced working hours or wages), Phase 4 (unemployed prior to the pandemic) and for Voluntary members.
In addition, the Fund introduced two reliefs aimed at assisting members with small or micro business ventures and those nearing retirement with low account balances.

Unemployment Relief Although the Fijian Government subsidy had ended in June 2021, the Fund continued with its efforts to provide Unemployment relief to its eligible members by paying out $22.8 million.
Members eligible for Phase 2 and 3 received $18.4 million and those that were unemployed prior to COVID-19 Home Loan (mortgage assistance) The FNPF rolled out the COVID-19 Response (Home Loan Assistance) from 1 April 2021 which continued into 2022.

The assistance enabled members to access their FNPF savings - inclusive of up to of their Preserved Account to pay for their monthly home loan repayments for a minimum of three months to a maximum of 12 months.
During the financial year, the Fund has paid out $10.1 million to over 1,000 members.

From the commencement date of the product, the Fund has assisted a little over , members with total payment of .

 million.

The COVID-19 Home Loan Assistance closed in December 2021.
Low Balance Account In the National Budget announcement on 16 July 2021, the withdrawal limit for Small Accounts, now known as Low Balance Accounts, increased from , to ,.

This change allowed members aged to who have been unemployed for at least a year with balances equal to or below $10,000 to fully withdraw their funds.
The change was effective from 16 August with a total of .

 million paid out to members of which $9.6 million is attributed to the increase in withdrawal limit.
Micro Business The Micro Business product provided funding for members between the ages of fifty to fifty four to venture into income generating activities in order to sustain themselves whilst transitioning into early retirement due to the effects of COVID-19.

Since its commencement date on 11 October 2021, the Fund has paid out less than a million ($0.7 million) to 133 members.

This product is still available to eligible members.
A N N U A L R E P O R T 2 0 2 2 21 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 Back on track – FNPF staff continued to raise awareness about the importance of planning for retirement.

This was a session at Lelean Memorial School in Nausori.

22 Our Operations An FNPF awareness session at Koro Island in the Lomaiviti Group.
Member Services The year began with our continued focus on meeting the needs of members that were still affected by the pandemic through the Unemployment Relief and Home Loan Assistance withdrawals.

Our mode of operations saw staff redeployed to respond to the surge in queries received via email, telephone, web and social media chat services.

We had to close the FNPF Valelevu Agency during the year and relocated to Nakasi Rups Mega Centre Complex.
The Nakasi Agency is to service members, pensioners and employers living along the Nasinu and Nausori corridor, and will also be operational on Saturdays.

The Fund has also recognised the potential for development of our membership and employer base in the North which aligns to our strategy aimed at increasing the quality of our service delivery in this division.

Customers Served The members’ mode of contact largely depends on the nature of their needs.
A total of , members sought FNPF services during the year, a 32% reduction compared to the last financial year.

Of these members, ,9 visited the Fund offices, 230,131 contacted the Fund by email, telephone and chat.

Email inquiries have increased by 17% to 77,238 compared to ,8 in .
Benefit Payments In 2022, the total amount withdrawn under full withdrawals was approximately $324.1 million, a 12.2% increase compared to $289.0 million in 2021.

Unemployment assistance because of the pandemic in 2021.

Withdrawals for housing assistance totaled $78.4 million and increased by 17.3% given that the Home Loan Assistance was offered during the year.

Pension Services During the course of the year, 12,094 customers were provided with pension-related services.

Of these, .
Of these, .

 were for renewal certificates, .

 for pension payments, 9% for a pensioner’s letter, .

 for a nominee change, and .

 for other pension services.

The total sum paid for early withdrawals was $64.4 million, compared to $144.9 million last year.
The decline in withdrawals is attributed to the return to work of our members who accessed However when compared to the last financial year, it is notable that only two services illustrated an increase whilst contributing to the overall decrease of in the pension service.
A N N U A L R E P O R T 2 0 2 2 23 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 Figure 2: Pension Services accessed in 2022 Figure 4: Early Withdrawals in 2022 57.7% Pension Renewal Payments 23.1% 9% 7.7% 2.5% Other Services Pension Letters Change of Pension Nominee Unemployment (COVID-19 Relief & Normal) $27.1m $99.6m in 2021 Medical (Local/ Overseas) Education (Local/ Overseas) Funeral $2.6m $2m in 2021 $27.9m $29.4m in 2021 $6.1m .9m in Small/Micro Business $0.7m total early withdrawals paid to members $64.4m $144.9m in 2021 Pension take-up rate The Pension take-up rate is the percentage of the number of members who purchased any combination of FNPF’s pension/annuity products against the total number of members who made a choice during the year.
The take-up rate was 4.9%, compared to 3.7% last year.

Membership The Fund’s total membership at the end of the year was 98,9, a decrease of .8 from 2021, as a result of the deregistering of dormant accounts with zero balances, factoring in the number of deceased members and duplicate accounts.

A total of 9, members are registered as Voluntary members.
Figure 3: Pension Takeup Rate for 2022 n o i s n e P r o f e l b i g i l E o N 700 600 400 300 200 100 0 7.69 % .

 4.73% 4.78% 6.03% .

9 .9 .
8 4.33% 3.6% 3.11% 2.77% Feb Mar Apr May Jun Jul Aug Sep Oct Nov Jan Financial Year 2022 Dec No Eligible for Pension under Retirement No Eligible for Pension under Death No Eligible for Pension under Medical Take Up Rate % 24 A N N U A L R E P O R T 2 0 2 2 Figure 5: Customers Served by Contact Types in 2022 95,659 37,641 in 2021 243,379 496.939 in 2021 Phone Face to Face 77,238 ,8 in 57,234 8% 7% 6% 4% 3% 2% 1% 0% e t a R p u e k a T Email Chat Employers The Fund’s active employers totaled 7,732 compared to 7,901 in 2021.
These are those employers that paid their employees contributions at least once during the financial year.

A total of 9 new employers were registered compared to 712 in 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 Total Contribution Contributions collected totaled 9.

 million compared with $321.3 million last year, an increase of 23%.
The increase in contributions is due to the review of the mandatory contribution rate from 10% to 12% on 1 January 2022.

The Fund also collected $20.1 million from voluntary members and $42.1 million from members’ additional contributions.

Contribution Debtors The balance of unpaid contributions was .

 million at the end of the financial year compared to .

 million in 2021.
million in 2021.

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

A total of ,was recorded in the suspense account in 2022 compared to , in .
Unclaimed Deposits Account The Fund transferred $80,834 of members’ funds to Unclaimed Deposits Account after reasonable diligent inquiry.

Employer Portal In the financial year, the employer portal was enhanced.

The number of employers that registered for the mployer Portal is 9, and 9, employers (96%) used the portal within the financial year.
Employer Inspection The Fund conducted 4,666 employer inspections with , firms receiving multiple visits this financial year.

Employer Complaints – Nonpayment of member contributions The Fund received member complaints against 102 employers for non-compliance.

Of these, 80 were recorded in the Central Division, for the West and three for the North.
The team handled of the member concerns received with one pending employer response and two are under investigation.

Legal Advice The Fund’s Legal Department issued a total of 83 legal opinions during the year.
Recovery of member contributions - prosecution A total of employer cases were registered during the year with the following 2022 No of cases Sum Opening debt 132 $2 million Current value of active cases Debt recovered Outstanding debt Civil recoveries .
million $1.0 million 73 $1.2 million 4 $0.04 million Additionally, 73 contracts which were valued at $8.8 million were developed and evaluated for and on behalf of FNPF and its subsidiaries.

Cases prosecuted were initiated based on the following offences with penalties prescribed under the FNPF Act 2011 Civil Litigation A total number of 26 civil litigation cases were handled by the Legal Department.
Out of these 2 have been closed while 24 cases are pending in court by the end of the financial year.

Member Account Transfers- Family Court Orders The impacts of the second wave of the COV ID-19 pandemic have halted transfers for matrimonial cases under section 136 of the FNPF Act 2011.

A value of $86,783 comprising 26 court orders were processed for transfers between member accounts in the last financial year.
a) Failing to pay contributions for workers; b) Failing to submit documents on demand; c) Failure to pay contributions after making deductions and; d) Failing to register as an employer.

Discharge of Property Titles FNPF is in the process of discharging all property titles belonging to members who withdrew under the housing assistance before November, 2014.
So far, 72 property titles were collected 2,231 are available for collection and 167 are awaiting the endorsement of the Registrar of Titles before they are delivered to their lenders.

As of une , 8 property charges valued at $0.7 million were deposited at the Registrar of Titles office.
A N N U A L R E P O R T 2 0 2 2 25 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 Our Investments A side view of the newly refurbished rooms at the Sheraton Fiji Golf and Beach Resort A fundamental role of the FNPF is to provide our members with sustainable retirement outcomes.

Following strong returns from last year, this year exceeded expectations which was visible through the declaration of 6% interest credited to members’ accounts despite the low-interest rate environment continuing from 2021.
The rapid and unexpected effects of COVID-19 impacted the domestic and international markets significantly.

Despite the ensuing effects, the Fund remained committed to preserving and growing members’ funds and providing support to members in need where possible.

The long-awaited border openings provided a positive way forward as 2022 was a year of recovery for the Fund and the nation.

There was renewed confidence and trust in the tourism industry and this showed in FNPF’s hotel investments.
Despite the obstacles posed by the pandemic, 2022 was a strong year for some of FNPF’s key investments which had an overall impact on Fund investments.

The investment portfolio grew from $8.1 billion in 2021 to close with $8.6 billion in .

Despite the significant COVID-19 pay-outs to members, the Fund was able to achieve growth in the investment portfolio.

The Return on Investment achieved in 2022 was 7.4% (net).
The FNPF’s broad investment objective is to maximize returns to members over the medium to long term, subject to constraints in the operating environment, cyclical economic impacts and fluctuations in returns over the short-term, to ensure an appropriate balance between risk and return.

The Fund continued to invest as per its current asset allocation strategy.

ong-term bond rates fell significantly during the year.
The decline affected the reinvestment rate for the Fixed Income Portfolio and resulted in lower income compared to last year.

This was inevitable due to the high liquidity and tough competition among investors pushing the rates downward as investment opportunities offshore were minimized due to stringent restrictions.

The Fixed Income Portfolio and the Commercial Loans Portfolio were mostly affected by the high liquidity and lower interest rates.
However, the Equities Portfolio showed strong performances due to investments in resilient sectors providing increased dividends, both local and offshore, with fair value appreciation from its key investment exposures.

Similarly, the properties portfolio recorded the same reflecting the impact of diversification as an important investment strategy.

The Funds’ net investment income before expenditures for the 2022 financial year has grown from .
million last year to .8 million.

The Fund invested in fixed income securities, cash and cash equivalents, commercial loans and equities.

At the peak of COVID-19, our focus was on risk-free Government Bonds and supporting our subsidiaries through our Commercial Lending arm.

However, since the economy is in recovery mode and with businesses improving gradually, the FNPF acquired 30.02% stake in Fiji Airways, a milestone investment in the airline industry.
This is in line with the Fund’s strategy to increase investments in Growth Assets and in strategic sectors of the Fijian Economy.

The Fund recorded $8.7 billion of net assets for the year, which was the basis of declaring 6% interest with distribution of $370.3 million to 9, members with positive balances.

26 Some investment highlights for 2022 are 1.

Commercial loan to ATH 2.


Second tranche of ATH share rights 3.

Completion of Refurbishment and Re - opening of Sheraton Resort 4.

Fiji Airways share acquisition .

Purchase of Secondary arket Government bonds 6.

Nadi Retail Project Completion and opening 7.

Paradise Beverages divestment.

8.


Opening of Ba Hospital Fixed Income The Fixed income portfolio is a defensive asset which helps investors manoeuver through turbulent times and a major strength in the Fund’s investment portfolio making it an attractive investment.

The COVID-19 pandemic tested our Fixed Income portfolio.
It turned out to be the most suitable investment from which we derived benefits during the pandemic and it was due largely to its salient features of good and steady income and cash flow as per investments done in previous years.

The attractive interest rates that it fetches are ideal for a long-term investor and earning a long term income.
However, over the year, due to the high levels of liquidity and tough competition the interest rates have been declining but the Fund has managed to maintain its investments in bonds as part of its long-term strategy.

Government Securities The portfolio of government bonds grew from .

 billion in to .

 billion in 2022.

The increase was due to investments exceeding maturities.
Total investments in Government bonds were $401 million compared to maturities amounting to .8 million.

The increase in investments came directly as a result of Government’s initiative to cushion the effects of the COVID-19 pandemic on the economy.

The bond rates had fallen during the year.

The -year bond rate closed at .

 on une compared to 4.80% on 30 June 2021.
The 20-year bond rate closed at 4.68% on 30 June compared to .

 on une 2021.

Quasi-Government Securities The quasi-government securities portfolio comprises borrowings by statutory semi - government institutions such as Housing Authority of Fiji (HA), Energy Fiji Limited (EFL), Fiji Development Bank (FDB), and Fiji Sugar Corporation (FSC).
The portfolio closed at $39 million in 2022 compared with million in .

The reduction in the overall portfolio was a result of maturities noted from Fiji Development Bank and Housing Authority of Fiji holdings.

Total investment in this portfolio was $2 million compared to none that were invested last year.

Most institutions continued to tap into lower rates with the commercial banks for their financing needs and did not float long- term bonds.
Investments in these bodies are guaranteed by the Government.

Treasury The Treasury function ensures all current and projected cash inflows and outflows of the Fund is monitored to enable the Fund to have access to sufficient cash resources to meet its legislated financial obligations.

Excess liquidity in the banking financial system during the financial year necessitated the protection of FNPF’s cash resources so that it remained yielding despite the downward pressure on interest rates.
The liquidity of the financial system increased to ,.

 million on une from ,8.

 million in June 2021.

The surge is attributed to increased liquidity injection through RBF’s special facilities and large foreign reserves.

The Fund’s cash holdings (Cash & Terms Deposits) in June 2022 was $646.9 million compared with $816.7 million in June 2021.
However, the decline in cash levels was evidence of the Fund’s ongoing efforts to diversify its investment portfolio and look for growth prospects.

Local Term Deposits The local term deposits declined from .

 million last year to close at 9.

 million this financial year.

The decline was due to redemption of term deposits and retaining into cash for investments and member withdrawals.
Offshore Term Deposits and Cash During the review period, the Offshore Term Deposit and cash portfolio closed at $46.6 million compared to .

 million in .

The decrease was due to funds committed for offshore investments.

On the other hand, injection of new funds approved by RBF was also done for offshore investments and dividends were received from offshore Equity investments.
Equities Local Equities The portfolio of local equities increased by 17.9% from the last financial year to end at around .

 billion in June 2022, up from $1.7 billion in June 2021.

Additional investment in Amalgamated Telecom Holdings Ltd (ATH) of $40 million, new investment of 9.
million in Air Pacific imited (t/a Fiji Airways) additional capital investments in HealthCare Fiji Limited, dividend reinvestment for Unit Trust of Fiji (UTOF) and Pleass Global Limited were some of the key drivers of the growth.

Similarly, the movement in annual fair value of subsidiaries/associates contributed to the increase in the local equities portfolio.
A N N U A L R E P O R T 2 0 2 2 27 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 Figure 6: Investment Income Increase Decrease 8.

 100.1 20.6 6.0 16.2 2.3 0.4 n o i l l i m $ 700 600 400 300 200 100 0 9.8 9.
Fixed Interest Commercial Loans Equities Properties Realized Income Revaluation Gains Properties Impairment Reversal Other Investment Income Unrealised Gains aviation and tourism industry debt continued throughout the year.

The repayment relief granted at the onset of the pandemic was extended to 30 June 2022.
The relief provided to these specific sector loans which were cushioned by the stable performance of loans in other sectors such as telecommunications, banking, real estate, and wholesale and retail trade.

The reopening of the borders in December had a significant influence on the recovery of the affected industries, particularly airlines and hotels.

Upon expiration of the repayment relief period, majority of the loans will recommence with full repayments.
In accordance with IFRS 9, the portfolio was assessed for impairments using a forward-looking expected credit loss model.

Properties The Fund’s property portfolio’s overarching theme for the year was resilience and reconnection.

The focus of the third quarter of 2022 was getting FNPF tenants back to work in a safe and welcoming environment.

FNPF continued to assist tenants who were directly impacted by COVID-19 through to December 2021.
The portfolio consists of 29 properties, including 19 commercial properties leased for retail and office use and undeveloped land holdings with the potential for future development.

The improvement in the portfolio performance compared to the last financial year reflects Fijis broad- based recovery.

The value of the properties’ portfolio at the end of 2022 was $447.7 million compared to $430.7 million in 2021, representing about a 4% increase in fair value.
My FNPF Centre, Nadi, which was successfully completed last year and opened to tenants and consumers on 6 December, 2021, contributed to the overall increase in rentable space.

Specific vacancy rates decreased resulting in an occupancy rate of 93% for the portfolio.

Rental income for the year was $20.6 million, compared to $19.0 million in 2021.

Figure 7: Top Dividend Contributors FPCL .
ATH .9 HFC 16.91% VFL 17.14% BSP 42.36% In addition, dividend income from the local equities portfolio increased to .

 million in from .

 million in 2021.

This is mostly attributed to the Fund’s investments in ATH, Vodafone Fiji, HFC Bank, Fiji Ports Corporation Ltd, Vision Investments Limited and others.
Offshore Equities With COVID-19 recovery, international borders reopening and investor confidence generally improving, the offshore equities portfolio increased by .

 from .8 million in to .

 million in .
The growth is due to additional investments in the IFC Emerging Asia Fund, on-going dividend re-investment capital gains from the Martin Currie Australia portfolios and currency movements resulting from the positive effects of the USD and PGK .

Key offshore investment made by the Fund in 2022 is the additional investment of $39.2 million in the IFC Emerging Asia Fund portfolio.

The offshore dividend income for was 8.

 million, a 8.
million, a 8.

 increase from .

 million in with the key contributor being a higher dividend income received from Bank of South Pacific PNG.

Commercial Lending The Commercial Lending portfolio closed at $1,112.4 million (after impairment) compared to $974.4 million in 2021, representing a growth of 14.2% (net of impairment).

Gross portfolio growth was 11.9%.


The total income increased to 9.8 million from .

 million.
million.

The impact of the COVID-19 pandemic on 28 multimillion dollar facelift – the interior fixtures, fittings and furniture at Sheraton Fiji Golf and Beach Resort Projects Sheraton Refurbishment Project The Sheraton Fiji Golf and Beach Resort has been successfully refurbished by FNPF’s wholly-owned subsidiary Barton Pte Ltd.
The newly renovated facilities were transferred to Marriott (operator) in March 2022 and it coincided with the recent opening of Fiji’s international borders.

As a result of the renovation, Sheraton Fiji has set a new standard on Denarau and now offers superior services and products in comparison to other hotels in the area.

The Fund’s decision to refurbish the resort was well-timed due to the closing of borders and low occupancy.
Westin Upgrade Currently, the Westin refurbishment is at the design documentation phase and tenders or requests for proposals will be submitted to the shortlisted contractors.

Marriott has completed and approved the mock room.

The reopening of Westin’s business operations is anticipated to occur in the second quarter of 2024 based on a comprehensive refurbishment programme and a -month construction timeline.
Figure 8: Local Equities Sector Exposure Figure 9: Offshore Equities Sector Exposure Real Estate Activities Health & Social Work Financial Insurance Activities Information & Communication Accomodation & Food Service Transport & Storage Wholesale & Retail & Repair of Electricity, Gas, Steam & Air Manufacturing Energy 1% Other 12% Utilities 10% Real estate 8% Infrastructure 14% Bank 0% 10% 20% 30% 40% 60% 70% A N N U A L R E P O R T 2 0 2 2 29 We invest with the best, for the best, for you.
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 With tourism being the backbone of our economy, the Fund has continued to support its 100% owned iconic hotel properties matched with continued support towards our national airline carrier that transports thousands of tourists into our friend isles.

As the Fijian economy gains momentum and the tourism industry strengthens, a positive outlook is certain for our Fund investments.
Sheraton Fiji Golf & Beach Resort Grand Pacific Hotel InterContinental Fiji Golf Resort & Spa Holiday Inn Yatule Resort & Spa Westin Denarau Island Resort & Spa 30 KNOW YOUR PROPERTIES 1.

FRCS Complex, Nasese 2.

Velop House , Suva 3.

Vodafone Building, Tamavua 4.

Mercury House, Suva .

Provident Plaa, autoka 6.

Ganilau House, Suva 7.


My FNPF Centre, Nadi 8.

QBE Building, Suva 9.

Grantham Plaza, Raiwaqa 10.

Robinson Complex, Raiwaqa 11.

Harbour Centre, Suva 12.

FNPF Place, Suva 13.

Kwong Tiy, Suva 14.

Victoria Parade, Suva .

Provident Plaa, Suva 16.

Harbour Front, Suva 17.

My FNPF Centre, Suva 8.

FNPF Office, abasa 19.


Vodafone Exchange, Vuda A N N U A L R E P O R T 2 0 2 2 31 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 CASE STUDY FIJI AIRWAYS Acquisition of new shares On 30 June 2022, FNPF bought 30.02% shares in Air Pacific imited, trading as Fiji Airways.

The acquisition was completed, after nine months of extensive due diligence and negotiations by the Board, Management along with renowned and competent external due diligence and transaction experts.
Why did FNPF invest in Fiji Airways?

This investment was considered on its merit.
Fiji Airways was always on FNPF’s radar as a potential equity investment appropriately fitting our long-term investment strategy and objectives as follows Investment diversification away from fixed income to growth investment High return potential both in interest income, dividends and capital appreciation nabler to other investment opportunities such as medical tourism, aged care, and commercial agriculture ventures for exports.
Synergies with FNPFs existing investment holdings, in particular its Hotel & Tourism Portfolio.

Whilst COVID-19 had an adverse impact on Fiji Airways (similar to all other airlines globally), the Fund saw this investment as an opportunity to acquire a strategic and national asset to Fiji at a discounted valuation (versus had it acquired pre-COVID-19).

As a strategic investor, FNPF’s investment objective is investing in long-term strategic assets.
How does the acquisition in Fiji Airways benefit the member?

It will enable the FNPF to receive dividend income from Fiji Airways and also the growth in the value of FNPF’s shares in Fiji Airways over time.

For some years now, FNPF has been a lender to Fiji Airways and the Fund will continue to receive interest income on its loans.

Overall, the FNPF will be receiving dividend income and value appreciation of its shares in Fiji Airways over the years apart from interest income from existing loans.
Ultimately, all this income will be taken into account when the interest to be credited in any given year is determined and the benefit to members will be in the form of interest that will be credited and distributed to their accounts.

How are Member Funds Protected?

The FNPF has a diverse portfolio that was significantly tested during COID-9.
As a result, the Fund was able to declare and pay interest to members in and based on the revenue it obtained from its diversified investment portfolio during those years.

Similarly, the Fund’s investment exposure (including current loans) in Fiji Airways is less than 4% of the FNPF’s overall investment portfolio.
32 SUCCESS STORY Government Securities Investment and its Contribution to Investment Portfolio Figure 11: Investment Income vs Government Securities Income 700 600 400 300 200 100 0 n o i l l i m $ FY12 FY13 FY14 FY FY16 FY17 FY18 FY19 FY20 FY21 FY22 Investment Income Govt Securities Income 268 8 286 161 302 310 362 396 170 88 183 617 206 368 229 646 247 Bonds are an essential component of a well-balanced and diverse portfolio with an excellent long- term investment option.
FNPF, like other superannuation funds around the world, invests in government securities for fixed income returns with less risk associated than other investment assets.

Bonds are naturally “safe” assets, and when included in multi-asset investing portfolios, they offer the benefits of defensive risk diversification.

FNPF invests in growth and defensive assets that gives return with its high earning capabilities to support the member liabilities.
Government securities consist of bonds, treasury bills, and RBF notes and are net of provisions as illustrated in Figure 10.

In the current financial year, FNPF has solely invested in government Bonds as they give more attractive returns than treasury bills and RBF notes.

The COVID-19 pandemic impacted the global and domestic investment environment, but government bond issuance continued.
FNPF invests in bond instruments that reduce the overall cash flow gaps to support the long-term investment strategy of matching the FNPF asset and liabilities.

FNPF bond investments from earlier investment years were cushioning the cash flow situation even when the statutory FNPF contributions were reduced and during COVID-19 turbulence.

Over the years, government securities have been the major contributor of investment income for FNPF.
In the last decade, FNPF’s revenue from government securities has risen from 8 million in to million in 2022 as illustrated in Figure 11.

FNPF actively participated in the bidding procedure to win and grow the bonds portfolio for greater returns for our FNPF members through its stable interest and maturity payments.
The returns on investments in government securities are reflected in the 6% interest rate announced to our members for the financial year ended 2022.

Figure 10: Government Securities in Investment Portfolio 7.9B 8.1B 8.6B 7.4B 6.6B .8B 4.8B .

B .

B 3.8B 4.1B 2.0B 2.0B 2.0B 2.0B 2.1B 2.3B 3.0B 3.4B 2.6B .

B 3.7B Total Investment Portfolio Government Securities FY12 3.8B 2.0B FY13 4.1B 2.0B FY14 .
B 2.0B FY 4.8B 2.0B FY16 .

B 2.1B FY17 .8B 2.3B FY18 6.6B 2.6B FY19 7.4B 3.0B FY20 7.9B 3.4B FY21 8.1B .

B FY22 8.6B 3.7B The investment in Government securities by the Fund has progressed well.

As indicated in Figure 10, the Fund’s portfolio of government securities bonds has expanded from $2.0 billion in 2012 to $3.7 billion in 2022.
For FNPF, diversification of the investment portfolio is the most successful strategy, investing in defensive and growth assets.

Returns earned from government securities is in line with sustainability approach to manage portfolio by re-investing as per FNPF’s asset allocation strategies.

The FNPF’s bonds portfolio is a crucial component of the investment portfolio’s asset allocation, since bonds’ stable returns assist to counter the volatility of equity prices.
As the monopoly superannuation Fund, investing members fund is an obligatory role for sustainability of member’s funds.

In 2012, the bonds portfolio made up of of the investment portfolio compared to 43% in 2022.

The holdings in government securities in proportion to investment portfolio have been reducing since FY12 as the Fund embarked on growth investments to increase returns.
With investments in bonds, FNPF is assured of sustainable returns, and FNPF members are accumulating a portion of the profit to their growing balances each year.
A N N U A L R E P O R T 2 0 2 2 33 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 Our Enablers Digital shift – the Fund’s online platforms experienced a Digital shift – the Fund’s online platforms experienced a hike in registration and usage during the lockdown hike in registration and usage during the lockdown The Fund’s mobile application, the myFNPF app, has undergone many cycles of modifications as new capabilities have been introduced.
It was the primary instrument on which the Fund and its members relied on for COVID-19 Unemployment assistance.

FNPF was also able to use the myFNPF app to assist the Government with the registration for its COVID-19 unemployment aid for persons residing beyond Viti Levu.

Integration of the myFNPF app with the Internet Payment Gateway (IPG) via a partnership with the Bank of South Pacific was a significant milestone.
This has allowed members to make additional and voluntary contributions directly through the app and in the process enhance their user experience.

This now complements the M-PAiSA payment facility that is already supported by the myFNPF app.

ore than , members actively use the myFNPF app making it one of the most popular mobile applications in Fiji.

I have to say, so impressed with the FNPF app.


Aside from being able to check transactions and updates - you can apply for withdrawals.

Made a partial withdrawal on the app and got it approved within 24 hours.

I didn’t have to go anywhere.

Tweet from a member New Employer Portal Features Significant modifications to the FNPF Employer Portal began in 2021 with a test phase and it proceeded throughout 2022.
The partnership with the banks and lending institutions in the processing of Micro Business assistance withdrawal was a significant addition to the redesigned Employer Portal.

The banks and lending institutions were able to easily log in to the Portal, register the applications of their FNPF-member clients and monitor the status of these applications.

This was a significant step towards improving the Funds efficiency in aiding members who also required third-party clearance.
Additionally, other key features in the enhanced Employer Portal allow for self-service and self-empowerment options that include the opportunity for employers to make revisions to their contribution schedules, see their debts, submit requests for contribution payment arrangements, book and organise meetings with FNPF and verify the validity of their submissions prior to submitting these online.

Employers can also see past invoice records and generate or reprint receipts for previous payments.
After operating concurrently for over a year, the old Employer Portal was decommissioned and all employers migrated to the new Portal, demonstrating excellent teamwork and partnership.

34 “I run a small business, so I have to do many of the business administration work myself.
The FNPF Portal has made it easier for me to ensure that I comply with the requirements of FNPF, allow me to easily monitor any issue that may need my attention, track my transactions, etc with FNPF, and manage my staff a little easier as well.” Feedback from Sealife Investments Pte Ltd.

Responsive Administration System The Funds back-office processes continued to be automated in relation to the administration of members, pensioners and employers.
Numerous upgrades were made to the FNPF back-office system to guarantee that changes to FNPF laws were adopted, member and employer needs were taken into account and enhanced efficiency were achieved.

The Fund continues to utilise digitization as an enabler to guarantee that its services are customer-centric.
Facebook 78,401 19% followers Twitter 3,794 followers Website Integration to Digital Fiji The Fund was able to leverage on a Digital Fiji initiative by integrating to one of government’s data hubs.

It leveraged on this hub on our advice of death process (through the myFNPF app ensuring an efficient process to reduce the turnaround time for processing funeral withdrawals.

More integration geared to improving customer-centric services, is planned in the new financial year.
Integration to Internet Payment Gateway (IPG) The Fund, in collaboration with BSP, implemented the Internet Payment Gateway (IPG) into the myFNPF app.

This allowed members to perform end-to-end digital transactions.

The app allows members to complete a transaction in its entirety.

It also allows for payments of contributions and registration of new voluntary members.

More integration into other customer-facing services is anticipated for the IPG next year.
Data Analytics & Data Intelligence Technological solutions related to data analytics continue to be added and enhanced.

Whether for daily operations or strategic evaluations, the Fund continues to equip employees, Management, and Board with data analytics to aid in the decision- making process.
The Fund was also able to increase its efficacy and efficiency as a result of increased data-sharing partnerships with key stakeholders and more importantly, has taken great efforts to guarantee that data-driven insights are the primary foundation for decision-making, rather than experience alone.

Infrastructure and Security Enhancements The IT Infrastructure modernization that begun in the last financial year was concluded this year.
This has increased the adaptability, accessibility, and security of the FNPF’s and members’ technological infrastructure.

As a result of this infrastructure upgrade, online services were available more than 99.7% of the time during the year.

Additionally, the Fund’s data recovery capabilities have been greatly enhanced.
196,493 Registered Email 325,754 Registered mobile numbers in LinkedIn 18,803 67% followers Online Portal users Employers 9,370 Members 43,664 MyFund (*567#) users myFNPF Mobile App installs page views 955,904 Recorded users 239,126 18,921 211,083 A N N U A L R E P O R T 2 0 2 2 35 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 Engaging our Members Being accountable – the Fund’s Executives, led by CEO Viliame Vodonaivalu (middle), Chief Operating Officer Pravinesh Singh left and General anager ember Services Alipate Waqairawai respond to questions during the annual member forum The Fund is committed to having an open and honest dialogue with our members.
We continue to expand our reach through our social media platforms such as web chats to encourage members to reach us.

Interestingly, email remains the most popular mode of communication for our members.

The Fund ensured the timeliness of its responses to members and of its public disclosures about COVID-19 related topics thus increasing the impact of its announcements through traditional and social media.
COVID-19 relief assistance communication was prevalent in the first half of the year as affected members applied for COVID-19 assistance for Unemployment, Home Loan (Mortgage), Micro Business, and a revamped full withdrawal assistance for members over years old, unemployed for at least 12 months and had a total FNPF balance of less than $10,000 - known as the Low Account Balance full withdrawal.
funded $360 Unemployment Aid for those residing outside of Viti Levu, as well as the Fund’s myFNPF app submission platform for those who qualified for the assistance.

The following were implemented to support our communication plans 1.

Weekly radio broadcasts to raise awareness of major Fund topics 2.

Live question-and-answer sessions on social media with COVID-19 alleviation as its main focus 3.

Video tutorials for withdrawal aid application filing 4.
Email correspondence with members and employers .

Frequent SS updates to members about withdrawal application status 6.

Press conferences and media announcements on current events 7.

Members get quarterly updates on Fund developments 8.

Promotion of Fund products in mainstream media (television, radio, and newspapers) 9.
Promotion of Fund products on billboards and digital screens and Voluntary products encouraging members to increase their FNPF savings capacity, especially those who had found financial security in self-employment and those whose salary had also returned to normal post-COVID-19.
Perception Management The Fund continued to experience opposition and criticism from individuals and organisations that undermined constructive attempts to support our members in times of distress, whether through withdrawals or investment.

The Fund dealt with re-occurring problems by addressing misperceptions quickly through the media (mainstream and social), focusing on positive-outcome-driven communications.
The Fund plans to continue to build member confidence by employing effective awareness and engagement initiatives to keep our members informed of wider efforts to grow and secure their retirement savings.
The Fund also disseminated information on the Government- The Fund also rolled out a robust marketing campaign for its Additional 36 Annual Member Forum Annually, the FNPF welcomes its members, employers and pensioners to the Annual Member Forum, where they get an update on the Fund’s performance and a prognosis for the upcoming year.
The forum provides members with the chance to inquire about the governance and management of the Fund.

verify that all safety standards were adhered to at all locations, including immunisation, temperature checks, compulsory masks during all sessions, and compliance with sitting distance limits.

Additionally, the Fund aired the forums live on its own Facebook page, which averaged , views per site.
For 2022, the Fund hosted forums in Suva, Nadi, Lautoka, Labasa and for the first time in Savusavu.

Nearly participants attended the five forums with the largest attendance reported in Suva.

Promoting inclusion in the Forum, the FNPF engaged the services of the Fiji Association of the Deaf for the first time to provide sign language interpretation at forums in Nadi, Suva, Labasa, and Savusavu.
for our hearing-impaired members, allowing them to voice their concerns about the Fund’s withdrawals and services in relation to their situation.

Advocacy & Awareness During the year, there were a total of advocacy sessions conducted, attended by 4,332 members.

These included both face-to-face and online sessions at the workplace and in the communities.
The Fund also participated in community collaboration activities through the ILO and JICA-sponsored Financial Literacy Working Group.
Given the COVID-19 health limitations were still in effect, the Fund had to The presence of the interpreter made the discussion more interesting FNPF staff at the Naval Base, Walu Bay Communication and marketing modes included billboards like the one pictured above and posters (below) pictured above and posters (below) FNPF Annual Member Forum at Savusavu (left), Suva (right) and Lautoka (bottom) A N N U A L R E P O R T 2 0 2 2 37 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 Managing our Risks Our Member Services team observed COVID-19 safety protocols at all times.
The RBF supervises and evaluates the Fund’s performance through regular prudential meetings and reports as required under the Act and the Insurance Act of 1998.

As part of its supervision responsibilities, the RBF performs on-site audits to verify that the FNPF is properly administered.
The most recent on-site examination of Investment and Information Technology risks by RBF was conducted in November 2021 with the final report evaluating the Funds capital position and earnings level as satisfactory and the composite risk rating considering capital and earnings as above average and rising over the next 12 months.
Risk Management and Business Continuity The Fund employs an approach to risk management that is consistent with the International Standard ISO 9.

This covers the Funds policies, processes, and internal controls for risk management.

The Board continues to assess and report on the Funds most significant post-COVID-19 risks.
Throughout the year, the focus has been on assessing and mitigating risks associated with new initiatives and operational strategies in collaboration with business units that included i.

Two additional withdrawal features on the mobile app Advice of Death/Funeral and Natural Disaster.

ii.

Membership registration via the mobile app iii.

Micro Business assistance under the COVID-19 relief assistance.
To verify that the Fund can continue to function during a crisis, the Fund successfully executed a Business Continuity simulation test on the Fund’s enhanced IT infrastructure with all of the Fund’s operations running from a backup location.
Compliance Management A compliance structure authorised by the Board guarantees that the Fund and its activities conform with the FNPF Act and other applicable laws; and carried out these activities during the year onitored and reported cash and suspicious transactions in line with the Financial Transaction Reporting Act of 2004 and the Financial Transaction Reporting Regulations of 2007.

(FTR).
(FTR).

 Conducted Fund-wide training and education on the reporting of cash transactions and the detection of suspicious transactions.

 nsure compliance with now Your Customer” Fiji Financial Intelligence Unit (FFIU) Policy Advisories and enforceable FTR Guideline criteria for the onboarding of members via digital modes and in person.

 Facilitated the RBFs on-site inspection.
Facilitated staff and Board Director declarations of interest.

 Reviewed the Funds registry of delegations of authority.

 Provided monthly updates to the Audit and Risk Committee of the Board.

Policy & Governance The Fund continues to review and enhance its policies to strengthen governance and guarantee that they support the Fund’s operation and conformity with applicable standards and laws.
For this financial year, the following were reviewed Procurement Policy Finance Policy egal Services Policy and Standard Operating Procedures Complaints Policy Review of Decision and Determination Scheme Policy Performance Development and Rewards Framework FNPF Remuneration Framework Talent Acquisition & Development Framework FNPF Training Policy edical Board Committee Charter Parametric Insurance Policy ember Records Policy Contribution Collection and Compliance Policy Insurance On 30 June 2021, the FNPF Group Insurance Scheme, which protects assets, profits, and liabilities, was successfully renewed.
In the 2023 financial year, the Group Insurance will undergo a comprehensive review.

38 Complaints Management With the Fund’s continuous push for member-centric services, the Fund actively worked in resolving the core causes of complaints, culminating in the creation of Service Level Agreements between Member Services, Information Technology and Finance Divisions.
The Complaints Management Policy was also reviewed to enhance the efficacy of the escalation procedure and complaint resolution turnaround time as well as to expand coverage to include internal complaints.

In terms of reporting, Management receives monthly complaints reports, and the Fund submits quarterly reports to RBF in compliance with regulatory requirements.
The overall number of complaints received declined by 19 from 2021, 204 (excluding COVID-19 complaints to 8 in .

As anticipated, the Fund continued to face significant challenges in 2022.

Due to the rapidly changing risk environment, these obstacles necessitated the Fund to adjust and adapt swiftly in order to fulfil new and urgent demands that support the Fund’s purpose and its members’ responses.
The year included both assurance and advisory activities with a focus on the Funds most significant risks 1000 s t n i a l p m o c f o .

o N 900 800 700 600 400 300 200 100 0 2 1 9 4 0 7 8 96 70 204 61 2018 2019 2020 2021 2022 Service related COVID-19 Figure 12: Complaints Trend and strategic initiatives.
The risk- based yearly work plan included high-priority engagements in Development Projects & Investments, Information Technology, Finance, COVID-19 Assistance Schemes, and Contributions & Compliance.

Internal Audit A key performance measure is the achievement of the annual work plan which is reported quarterly to the Fund’s Board Audit & Risk Committee (BARC) and monitored regularly.

Tabulated below are the results of the audit engagements and investigations undertaken during the year.
Audit Status 2022 2021 Planned –Audits & Investigations Completed Audits & Investigations 46 43 Despite the difficulties of remote auditing, particularly during the first quarter of the year, the team continued to rely on technology to enable the achievement of key deliverables while strengthening our partnership and coordination with Management and the Board Audit & Risk Committee (BARC).
Through the use of auditing tools and technology, we were able to conduct an in-depth study to deliver significant insights to aid management achieve its goals via consulting audits.

Audit Follow-Up & Reporting Management periodically updates the BARC on the status of implementing recommendations noted in audit reports.
When the year concluded 91% of tracked recommendations had been implemented and it reflects managements efforts and BARC’s oversight in ensuring that the Fund works in a well-controlled environment that fosters a culture of compliance, risk management and effective internal controls.

From 2023, the Fund will use its audit management system for monitoring and tracking.
Figure 13: Audit Resource Allocations 14% 32% 32% 22% IT & Support Investment & Subsidiariers Finance & Operations Investigations Fraud Management In establishing the tone for the organisation, the Board has zero tolerance for fraud.

The norm is specified in the Funds Code of Conduct, Human Resources Policy and Anti-Fraud Policy.

Infractions are punished in line with the Fund’s regulations and applicable legislation.
During the COVID-19 Unemployment Assistance inquiry, the Fund’s Fraud & Control Unit saw an upsurge in investigation cases involving member and employer fraud with document falsification identified as a major breach.

As part of its mitigating strategies, internal and external campaigns for anti-fraud and whistleblower policies are ongoing.
Quality Assurance and Improvement Program Quality Assurance & Improvement Program as required by International Professional Practice Framework (IPPF) is aimed at assessing the degree of conformity of the internal audit activities with the internal auditing standards.

It also enhances the quality of audit by evaluating the efficiency and effectiveness of the internal audit activity and identifying areas for improvement.
During the course of the year, the Fund conducted internal assessments via peer reviews of certain audits conducted, gathered client feedback via a client satisfaction survey, and identified the need to strengthen its research and professional development commitments in 2023 as part of its development plans.
A N N U A L R E P O R T 2 0 2 2 39 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 Our Governance Participants at the Strategic Planning workshop held in May, with FNPF Directors and the Management team.

Board Skills The Act stipulates that Board members must have knowledge in investment management, corporate governance, accounting and auditing, finance and banking, risk management, law, serving as an actuary or auditor, and information technology or a related engineering area.
Members of the Board Committees, who are unaffiliatedindependent, provide additional expertise and insights.

There may also be some areas of competence for which the Board may seek external guidance as and when needed.

Representatives from FTUC and FCEF also attended the Strategic Planning workshop in May 2022.

The Board According to the Fiji National Provident Fund Act, 2011 (the “Act”), the FNPF Board is responsible for managing and administering the affairs of the Fund.
Before the Minister of Economy designates a Board member, Section 7 of the Act requires that the Reserve Bank of Fiji (RBF) determines that those nominated are fit and proper.

The FNPF Board currently has six appointed Directors.

The Chairman is Daksesh Patel and Vice Chairman is Sanjay Kaba.

The other directors are Joel Abraham, Mukhtar Ali, Kalpana Lal and Shiri Gounder.
The Board also has four committees that provide technical assistance and advice on significant matters brought to the Board for resolution by Management.

These are Audit and Risk Management, Information Technology, Investments, and Human Resources committees.

The committees meet every three months or as needed to examine topics pertinent to their respective fields prior to these matters being submitted to the Board for consideration and approval.
40 Table 1: Board and Board Committee Meetings and Attendance for the Period of 1 July 2021 to 30 June 2022 Board Members 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 BOARD BARC BIC BHR BIT 1 July 2020 to 31 June, 2021 Mr Daksesh Patel (Chairman) Mr Sanjay Kaba (Deputy Chairman) Mr Shiri Gounder* Ms Kalpana Lal Mr Mukhtar Ali Mr Joel Abraham 13 14 13 13 7 7 7 7 7 7 7 6 4 4 1 1 Board Committee Members BARC BIC BHR BIT Held Attended Held Attended Held Attended Held Attended Other Board Committee Members Mr Kameli Batiweti Mr Geoffrey Rashbrooke Mr Gitesh Nair Mr Nacanieli Rika Mr Timoci Tuisawau Mr Vilash Chand Mr Chinthake Ranasinghe r ohn agnifico 4 4 1 1 1 1 1 1 0 1 *Director Gounder did not attend 5 Special Meetings due to conflict of interest.
01 AUDIT & RISK SUB-COMMITTEE 02 HUMAN RESOURCES SUB- COMMITTEE 03 INVESTMENT SUB-COMMITTEE 04 INFORMATION TECHNOLOGY SUB-COMMITTEE Kalpana Lal (Chair) Mukhtar Ali Geoffrey Rashbrooke Gitesh Nair Nacanieli Rika BARC Joel Abraham (Chair) Kameli Batiweti Shiri Gounder BHR BIC Sanjay Kaba (Chair) Kalpana Lal Mukhtar Ali Joel Abraham BIT Joel Abraham (Chair) Timoci Tuisawau ohn agnifico Chinthake Ranasinghe Vilash Chand A N N U A L R E P O R T 2 0 2 2 41 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 BOARD OF DIRECTORS Mr DAKSESH PATEL Mr MUKHTAR ALI Mr SHIRI GOUNDER Since January 2020 Since January 2020 Since March 2021 Chairman Director Director Mr Patel 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 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 also the current Chairman of EFL.

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 Gounder is the Permanent Secretary for conomy and has over 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.

Ms KALPANA LAL Since April 2019 Director Mr JOEL ABRAHAM Since April 2019 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.

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.
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 xaminers.

He is a member of the Australian Institute of Company Directors, Association of Certified Fraud xaminers, CPA Australia, and a Chartered Accountant.

Mr SANJAY KABA Since January 2020 Director Chairperson of the Board Investment Committee.
He has vast experience in Project Development, Project Management and Planning and Civil/Structural Engineering.

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.

42 .

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 A N N U A L R E P O R T 2 0 2 2 43 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 Our People Board Director Kalpana Lal and female staff strike a pose during the International Women’s Day celebration in March There was a strong reliance on the Fund to guide our people through what was possibly the most severe health catastrophe in Fijian history.
Despite the grave danger presented by COVID-19, broader measures to boost economic recovery and restore normality put a lot of pressure on our people to deliver.

The Fund had to ensure that it kept a balance between keeping workers safe and engaged while allowing them to grow and develop professionally under COVID-19 conditions.
We collaborated through these challenges as the fatalities caused by the Delta variant rose, vaccine dilemmas, safe return to work, border opening, widespread infections caused by the Omicron version, and our ongoing commitment to aid in the economic recovery.

The acceptance of the 2022 Plan effectively outlined the Board’s expectations for addressing COVID- 19’s ongoing uncertainties.
The Fund’s capacity to respond to each interruption, even a pandemic, continues to reflect the competence and dedication of its leaders and employees.

Gains amidst Delta & Omicron The mandate for vaccination generated its own discourse.

Through proper collaboration, as well as the successful execution of our COVID-19 Communication Plan, the Fund was able to guarantee that 98% of its staff had complied accordingly.
This necessitated a Safe Return to Work approach that monitored the progressive reintegration of staff members following a 10-month absence.

As workers gradually had faith in the Fund’s COVID-19 safety initiatives, the Fund’s average Work- from-Office hours increased by more than 40 percent.

In December 2021, the COVID-19 Safe Work Guidelines were developed based on the outcomes of the Safe Return to Work Survey.
The guideline continues to benefit the Fund with infection rates below 20% of the Fund’s population.

Employee engagement, as assessed by employees of the Fund had a net promoter score (eNPS) of 49%, considerably above the target of 32%, notwithstanding the turbulent period from which the Fund’s employees had emerged.

The Fund received a score of 3.99 for the Employee Engagement Index (EEI) survey.
Although this was below our target of 4.10, it was still higher than the scores of .8 in 8 and .9 in 2020 (pre-COVID-19).

About 70% of senior and managerial positions were filled internally during the year.

The Fund also noted an increase of women appointed to our executive and management roles.

These show our commitment to the Fund’s leadership development succession planning and providing equal opportunities to our employees.
44 Notable Achievements There were several milestones that were achieved by the Fund which included the People at a Glance The Fund closed its staff numbers at 381 after posting an opening staff count of 387.
A comparative summary of the FNPF staff trends for the last financial years is reflected below Development of the new Performance Management System (PMS) Policy, which establishes the proper monitoring and evaluation of performance in the Fund.
This will be implemented in 2023; PriceWaterhouse Cooper (PWC) and Strategic Pay also conducted peer reviews (NZ) Implementation of the Staff Engagement Plan, with a substantial emphasis on staff health and wellness in light of the challenges currently encountered by staff.

This also includes the graduation of the second group of Complete Health Improvement Program employees (CHIP) Completion of the Power BI Dashboard Project.
This project streamlines HR reporting and makes real-time monitoring possible.
Completion of the chat services which allows employees to communicate discreetly and directly with HR people about a variety of HR services and questions Completion of 88 9 of the Fund’s Training Plan, a 36% increase from the previous year Collaboration with the ICN to clean up Nabukalou Creek and Suva Foreshore is indicative of the Fund’s commitment to support its Fund’s commitment to support its local communities local communities ITEM FY20 FY21 FY22 Staff Numbers Recruits Exits LTO (All staff) LTO (permanent only) ER Cases Years of Service (AvG) Age (AvG) OHS Incidents Training Activities (Face to Face) Training Investment Percipio Cost Percipio Uptake Courses Completed (Percipio) 398 12 78 16.3% .
14 9 37 3 $270K $100K 71% 387 11 3.8% .
34 10 38 2 48 $48K $80K 74% 2187 381 30 33 8.6% 8.3% 11 39 2 13 $280K $100K 90% 9 Despite an increase in staff departures and turnover rate, the Fund had positive outcomes, as indicated by the following Looking ahead Among the activities the Fund plans to conduct in the coming year are Percipio online learning platform use increased by 16% ncreased Online Training aterial Completion by Realiation of the Funds Strategic Priorities while operating at less than 80 percent for the majority of 2022 Gradual restoration of pre- COVID-19 training expenditures COVID-19 training expenditures to support the Fund’s efforts to to support the Fund’s efforts to develop and expand its personnel develop and expand its personnel Integration of a Human Resources Information System to complement the Fund’s digital transformation journey and ease of doing business.
Review of the Funds structure to align with its new strategic direction.

 eadership and People Development to reinforce and support the Fund’s cultural shift.

 Designing adaptable work patterns and policies to eliminate performance inhibitors.
A N N U A L R E P O R T 2 0 2 2 45 & & , & t i n U s s e n i s u B & ) g n i t c A ( & t i d u A d r a o B e e t t i m m o C k s i R .
& & - ) g n i t c A ( & & ) g n i t c A ( t n e m t s e v n I u v a t a S a u s o J ) g n i t c A ( & & r a k n a h S l a m A & e s i r p r e t n E r e g a n a M t r o p p u S & & & & & l e t o H r e g a n a M m s i r u o T u o p u T u i r d
& 46 A N N U AL FIJI NATIONAL PROVI DEN T FUND FINANCIAL STATEMENTS 30 JUNE 2022 CONTENTS Board members’ report 48 – 49 Statement by board members Independent auditor’s report to the members 50 of Fiji National Provident Fund 51 – 54 Income statement 55 Statement of net assets available for benefits 56 Statement of changes in member benefits 57 Statement of changes in reserves 58 Income statements by Fund 59 Statements of net assets available for benefits by Fund 60-61 Statement of cash flows 62 Notes to and forming part of the financial statements 63 – 112 A N N U A L R E P O R T 2 0 2 2 47 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 Fiji National Provident Fund Board Members’ Report or the year ended ne The Board members present their report together with the financial statements of Fiji National Provident Fund the Fund for the year ended une and report as follows Board Members The Board members of the Fund during the year and up to the date of this report were r. Daksesh Patel Chairman Mr. Mukhtar Ali Mr. Sanjay Kaba Ms. Kalpana Lal Mr. Joel Abraham Mr. Shiri Gounder 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.
Operating Results The net surplus attributable for allocation for the year ended une was ,, 9,,.
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 .

 ..

Bad and Doubtful debts The Board members took reasonable steps before the Funds financial statements were made out to ascertain that all known bad debts were written off and adequate provision were 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.

inificant eents drin the year i.
The continued Covid-9 assistance to members from previous financial years for Phases , Phase , Phase , lockdown and voluntary member assistance worth ,8,.

Assistance was provided from members General Account balance with maximum assistance of ,8.

The final payment for the assistance was done in anuary .

ii.
ii.

FNPF exercised its rights to subscribe to ATHs Share Rights Issue and acquired a total of ,, new shares at the share rights issue price of .

 amounting to ,,.

The shares were issued to FNPF in uly .
However, the payment for this transaction was done in une .

iii.

On th une , the Fund acquired a .

 stake in Air Pacific imited AP trading as Fiji Airways for 9,,.
The investment by FNPF was part of the unsubscribed shares from the initial capital raising undertaken by AP to its existing shareholders in .
FNPFs due diligence process commenced in September and was conducted by reputable local and international firms with extensive knowledge of the aviation industry and expertise in the areas of valuation, deal advisory, financial and tax due diligence, legal due diligence, technical due diligence and peer review.
The key advisors involved in the significant deal included AN Corporate Advisory out of Australia, IBA one of the worlds leading aviation advisors, Norton White Australian law firm, cGrathNicol, Hall & Wilcox, Howards awyers and olony Advisory.
48 Fiji National Provident Fund Board Members’ Report or the year ended ne inificant eents drin the year contined The completion of the deal resulted in FNPF becoming the second largest shareholder in AP, with an entitlement to nominate two Directors on the AP Board.
FTI was also engaged to provide an independent assessment of the value of the Funds interest in Fiji Airways as at une and it was concluded by FTI that the transaction price of .

 per share reflected a reasonable representation of the fair value at 30 June 2022.

Events Subsequent to the Balance Date Amalgamated Telecom Holding International enture Pte.
imited ATHI Share FNPF exercised its rights to subscribe ATHI shares and paid for a total of ,, new shares amounting to S,, on th une, .
As at th une , acquisition amount of ,9,989 was recorded under other receivables as shares were not issued on reporting date.

The shares was issued to FNPF in August , whereby, FNPF would ultimately hold an equity interest in ATHI of around .
Apart from the matter noted above, there has not arisen in the interval between the end of the financial year and the date of this report, any transaction or events 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 .

elated arty 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.
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 Funds 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.
ctarys 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 Funds financial statement by reason of a contract made by the Fund or related corporation with the Board member or with a firm of which heshe is a member, or with an entity in which heshe has a substantial financial interest.
Dated at Suva this th day of September, .
Signed in accordance with a resolution of the Board Chairperson Director A N N U A L R E P O R T 2 0 2 2 49 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 Fiji National Provident Fund tatement by oard embers or the year ended ne 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 June 2022; 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 June 2022; 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 une 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 June 2022; 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 June 2022; 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 and h The financial statement and notes are in accordance with Fiji National Provident Act .
Dated at Suva this th day of September, .
Signed in accordance with a resolution of the Board Chairperson Director 50 Independent Auditor’s Report Independent Auditor’s Report Independent Auditor’s Report To the Members of Fiji National Provident Fund To the Members of Fiji National Provident Fund To the Members of Fiji National Provident Fund eort on the adit of the financial statements Report on the audit of the financial statements Report on the audit of the financial statements Opinion We have audited the accompanying financial statements of Fiji National Provident Fund (the We have audited the accompanying financial statements of Fiji National Provident Fund the Fund, We have audited the accompanying financial statements of Fiji National Provident Fund (the ‘Fund’), which comprise the statement of net assets available for benefits and the statements of net which comprise the statement of net assets available for benefits and the statements of net assets ‘Fund’), which comprise the statement of net assets available for benefits and the statements of net assets available for benefits by Fund as at 30 June 2022, and the income statement, the income available for benefits by Fund as at une , and the income statement, the income statements by assets available for benefits by Fund as at 30 June 2022, and the income statement, the income statements by Fund, statements of changes in member benefits, statement of changes in reserves Fund, statements of changes in member benefits, statement of changes in reserves and statement of cash statements by Fund, statements of changes in member benefits, statement of changes in reserves and statement of cash flows for the year then ended, and notes to the financial statements, flows for the year then ended, and notes to the financial statements, including a summary of significant and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.


including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial In our opinion, the accompanying financial statements give a true and fair view of the financial position In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Fund as at 30 June 2022, and of its financial performance, changes in member of the Fund as at une , and of its financial performance, changes in member benefits, changes in position of the Fund as at 30 June 2022, and of its financial performance, changes in member benefits, changes in reserves and its cash flows for the year then ended in accordance with benefits, changes in reserves and its cash flows for the year then ended in accordance with reserves and its cash flows for the year then ended in accordance with International Financial Reporting International Financial Reporting Standards.


Standards.

r O r O s f s f Basis for Opinion We conducted our audit in accordance with International Standards on Auditing ISAs.

Our responsibilities We conducted our audit in accordance with International Standards on Auditing (ISAs).

Our We conducted our audit in accordance with International Standards on Auditing (ISAs).
Our under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial responsibilities under those standards are further described in the Auditor’s Responsibilities for the responsibilities under those standards are further described in the Auditor’s Responsibilities for the Statements section of our report.

F F s section of our report.

s section of our report.


t o t o f t f t l S l S We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

for our opinion.
Independence We are independent of the Fund in accordance with the ethical requirements of the International We are independent of the Fund in accordance with the ethical requirements of the International thics Standards Board for Accountants Code of thics for Professional Accountants ISBA Code that We are independent of the Fund in accordance with the ethical requirements of the International Ethics Standards Board for Accountant’s Code of Ethics for Professional Accountants (IESBA are relevant to our audit of the financial statements in Fiji, and we have fulfilled our other ethical Ethics Standards Board for Accountant’s Code of Ethics for Professional Accountants (IESBA Code) that are relevant to our audit of the financial statements in Fiji, and we have fulfilled our other responsibilities in accordance with these requirements and the ISBA Code.
Code) that are relevant to our audit of the financial statements in Fiji, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

ethical responsibilities in accordance with these requirements and the IESBA Code.

Other Information r I r I Board members and management are responsible for the other information.
The other information comprises the information included in the Annual Report, but does not include the financial statements Board members and management are responsible for the other information.

The other information Board members and management are responsible for the other information.

The other information and our auditor’s report thereon.
comprises the information included in the Annual Report, but does not include the financial comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon.

statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
Our opinion on the financial statements does not cover the other information and we do not express Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

any form of assurance conclusion thereon.

PricewaterhouseCoopers, Level 8 Civic Tower, 272 Victoria Parade, Suva, Fiji.

PricewaterhouseCoopers, Level 8 Civic Tower, 272 Victoria Parade, Suva, Fiji.

GPO Box 200, Suva, Fiji.

GPO Box 200, Suva, Fiji.


T: (679)3313955 / 3315199, F: (679) 3300947 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.

PricewaterhouseCoopers is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
A N N U A L R E P O R T 2 0 2 2 51 In connection with our audit of the financial statements, our responsibility is to read the other information In connection with our audit of the financial statements, our responsibility is to read the other and, in doing so, consider whether the other information is materially inconsistent with the financial information and, in doing so, consider whether the other information is materially inconsistent with statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, the financial statements or our knowledge obtained in the audit, or otherwise appears to be based on the work we have performed, we conclude that there is a material misstatement of this other materially misstated.

If, based on the work we have performed, we conclude that there is a material information, we are required to report that fact.

We have nothing to report in this regard, except that not misstatement of this other information, we are required to report that fact.
We have nothing to report all other information was available to us at the date of our signing.

in this regard, except that not all other information was available to us at the date of our signing.
Responsibilities of Board Members’ and Management for the Financial Statements Responsibilities of Board Members’ and Management for the Financial Statements Board members and management are responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards and with the requirements of the Fiji National Provident Fund Act , and for such internal control as the board members and management determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Board members and management are responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards and with the requirements of the Fiji National Provident Fund Act 2011, and for such internal control as the board members and management determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the board members and management are responsible for assessing the Funds ability to continue as a going concern, disclosing, as applicable, matters related to going In preparing the financial statements, the board members and management are responsible for concern and using the going concern basis of accounting unless the board members and management assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters either intend to liquidate the Fund or to cease operations, or have no realistic alternative but to do so.
related to going concern and using the going concern basis of accounting unless the board members and management either intend to liquidate the Fund or to cease operations, or have no realistic alternative but to do so.

The board members and management are responsible for overseeing the Funds financial reporting process.

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

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists.
isstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists.

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

We also As part of an audit in accordance with the ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit.
We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting ● Identify and assess the risks of material misstatement of the financial statements, whether due a material misstatement resulting from fraud is higher than for one resulting from error, as fraud to fraud or error, design and perform audit procedures responsive to those risks, and obtain may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not control.

detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the Obtain an understanding of internal control relevant to the audit in order to design audit procedures override of internal control.

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit 52 valuate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board members and management.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting ● Evaluate the overall presentation, structure and content of the financial statements, including the estimates and related disclosures made by the board members and management.
Conclude on the appropriateness of the board members and managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists ● Conclude on the appropriateness of the board members’ and management's use of the going related to events or conditions that may cast significant doubt on the Funds ability to continue as a concern basis of accounting and, based on the audit evidence obtained, whether a material going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s our auditors report to the related disclosures in the financial statements or, if such disclosures are ability to continue as a going concern.

If we conclude that a material uncertainty exists, we are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to required to draw attention in our auditor’s report to the related disclosures in the financial the date of our auditors report.

However, future events or conditions may cause the Fund to cease to statements or, if such disclosures are inadequate, to modify our opinion.

Our conclusions are continue as a going concern.

based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Fund to cease to continue as a going concern.

valuate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with board members and managements regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We communicate with board members and managements regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
eort on ther eal and elatory eirements In our opinion the financial statements have been prepared in accordance with the requirements of the Fiji National Provident Act in all material respects, and Report on Other Legal and Regulatory Requirements a we have obtained all information and explanation that, to the best of our knowledge and belief, were In our opinion the financial statements have been prepared in accordance with the requirements of the Fiji National Provident Act 2011 in all material respects, and; b we have been given all information, explanations and assistance necessary for the conduct of the necessary for the purpose of the audit; and audit.
a) we have obtained all information and explanation that, to the best of our knowledge and belief, were necessary for the purpose of the audit; and b) we have been given all information, explanations and assistance necessary for the conduct of the audit.
A N N U A L R E P O R T 2 0 2 2 53 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 8 8 8 Restriction on Use Restriction on Use This report is made solely to the Fund’s members, as a body, in accordance with the Fiji National Restriction on Use This report is made solely to the Fund’s members, as a body, in accordance with the Fiji National Restriction on Use Provident Fund Act 2011.
Our audit work has been undertaken so that we might state to the Fund’s This report is made solely to the Funds members, as a body, in accordance with the Fiji National Provident Provident Fund Act 2011.

Our audit work has been undertaken so that we might state to the Fund’s members those matters we are required to state to them in an auditor’s report and for no other Fund Act .
Our audit work has been undertaken so that we might state to the Funds members those members those matters we are required to state to them in an auditor’s report and for no other This report is made solely to the Fund’s members, as a body, in accordance with the Fiji National purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to matters we are required to state to them in an auditors report and for no other purpose.

To the fullest Provident Fund Act 2011.
Our audit work has been undertaken so that we might state to the Fund’s anyone other than the Fund and the Fund’s members as a body, for our audit work, for this report, anyone other than the Fund and the Fund’s members as a body, for our audit work, for this report, extent permitted by law, we do not accept or assume responsibility to anyone other than the Fund and members those matters we are required to state to them in an auditor’s report and for no other or for the opinions we have formed.


the Funds members as a body, for our audit work, for this report, or for the opinions we have formed.

purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Fund and the Fund’s members as a body, for our audit work, for this report, or for the opinions we have formed.
PricewaterhouseCoopers PricewaterhouseCoopers Chartered Accountants Chartered Accountants PricewaterhouseCoopers Chartered Accountants PricewaterhouseCoopers Chartered Accountants Wiliki Takiveikata Wiliki Takiveikata Partner Partner Wiliki Takiveikata Partner Wiliki Takiveikata 30 September 2022 30 September 2022 30 September 2022 Partner Suva, Fiji Suva, Fiji Suva, Fiji 30 September 2022 Suva, Fiji 54 Fiji National Provident Fund Income Statement or the year ended ne Income Interest Dividend Property rental Change in fair value of equity investments Change in fair value of investments properties Foreign exchange gains Other income Reversal of impairment on assets held at amortized cost Reversal of impairment on mortgaged loans Reversal of impairment on contribution receivable Total income Less: Impairment on mortgaged loans Impairment of assets held at amortized cost Foreign exchange losses Change in fair value of investment properties Net income Expenses Investment expenses Property expenses Interest expenses General administration expenses Depreciation and amortization 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 2022 $000 2021 $000 a b a b 8 9 b 9 9 9, , , ,9 , ,9
,9 ,8 ,8 ,8 , , , 9, , - - ,99 , - - 650,764 592,625 - - - - 8, 9, , 650,764 543,486 , ,88 20 9,9 , - 50,238 , 8, 21 ,8 , , 46,934 600,526 496,552 - - 600,526 496,552 , ,9 600,526 ,9 9,8 496,552 The income statement is to be read in conjunction with the notes to and forming part of the financial statements.
A N N U A L R E P O R T 2 0 2 2 55 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 Fiji National Provident Fund tatement of net assets aailable for benefits s at ne 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 quity 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 otal liabilities ecldin net assets aailable to ay benefits et assets aailable for member benefits and reseres Comprising: eer enefits Allocated to members Unallocated to members otal member benefits Reserves Investment reserve Solvency reserve Total reserves Total Funds Notes 2022 $000 2021 $000 20 8 a 21 b 22 , 9,8 , , , 8,99 9, ,8, 8,9 ,, ,9,8 ,9 ,8 ,9,99 ,98 9, ,,
, ,8 , 8,714,313 ,9 331 ,9 8,207,031 , 9,89 , 33,571 8,99 9, , 29,320 8,680,742 8,177,711 ,9, ,98 6,953,439 ,8,99 ,9 6,664,248 9, 8,8 1,727,303 8,8 , 1,513,463 8,680,742 8,177,711 These financial statements have been approved in accordance with a resolution of the Board of Directors.
For and on behalf of the Board Chairperson Director 56 Fiji National Provident Fund tatement of chanes in member benefits s at ne alance at 1 ly 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 fromto general reserve losin balance of members benefits Notes 2022 $000 2021 $000 6,664,248 6,545,918 9, 9, 395,244 , , 321,290 ,999 , ,8 ,8 aii e e aiii , ,9 c b ,9 , , , , 9,8 6,953,439 , 8,8 , 6,664,248 The statement of changes in member benefits is to be read in conjunction with
 the notes to and forming part of the financial statements.
A N N U A L R E P O R T 2 0 2 2 57 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 - , 8 9 , , 3 0 3 7, 2 7 1 , - , 8 8 , , , , 3 6 4 3 1 5 1 , l a t o T 0 0 0 $ , 7 4 0 0 4 3 1 , y c n e l o e v r e s e R 0 0 0 $ 8 5 8 6 5 7 , - - 9 , , 8 8 , 0 4 6 4 6 7 , - - , 8 9 , 8 , 3 8 7 6 0 8 , 0 0 0 $ e v r e s e R , 9 8 1 3 8 5 t n e m t s e v n I - - 9 , , , 3 2 8 8 4 7 , 8 , - - , , 0 2 5 0 2 9 .
s t n e m e t a t s l a i c n a n fi fi - B D S - F I R - s e v r e s e r s t fi - B D S - F I R - 58 $ 2 2 0 2 0 0 0 $ 1 2 0 2 0 0 0 $ 2 2 0 2 0 0 0 $ 1 2 0 2 0 0 0 $ 2 2 0 2 0 0 0 $ 1 2 0 2 0 0 0 $ 2 2 0 2 0 0 0 $ l a t o T ) ” F B D S “ ( d n u F t fi e n e B I ) ” F R “ ( , , 9 , , - - - - 9 9 , , 9 , , , 9 , , 9
, 9 , 8 , 8 , 8 , , 9 , , , , , - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9 9 8 , 9 , , - - 9 9 , 9 , - - 8 8 , , , 9 , , 9 , 8 , 9 8 , , 5 2 6 2 9 5 , 4 6 7 0 5 6 , 9 6 3 3 , 9 7 6 3 , 2 6 0 7, 2 9 7 7 6 2 , , 4 9 1 2 6 5 6 0 3 0 2 6 , 9 , 8 , , - - - - - - - - - - - - 1 1 - - - - - - 8 9 , 8 , , - - - - 6 8 4 3 4 5 , 4 6 7 0 5 6 , 3 6 3 3 , 9 7 6 3 , 1 5 0 7, 2 9 7 7 6 2 , , 2 7 0 3 1 5 6 0 3 0 2 6 , 1 2 , 8 , 8 , , , - 8 8 , , 0 2 9 9 ,
9 9 , , 4 3 9 6 4 , 8 3 2 0 5 , - - - - - - - - - - - - - - - - - - - 1 0 3 - - - - 1 2 , 8 , , , 8 , - 0 2 8 8 , , , 8 , 1 0 3 8 3 3 3 3 6 6 4 , 0 0 9 9 4 , : , 6 2 5 0 0 6 , 3 6 3 3 , 9 7 6 3 , 0 5 7 6 2 , 1 4 4 6 2 , 9 3 4 6 6 4 , 6 0 4 0 7 5 , n o
6 2 , 1 4 4 6 2 , 9 3 4 6 6 4 , 6 0 4 0 7 5 , , 9 8 9 , , , 9 2 5 5 6 9 4 , 6 2 5 0 0 6 , - , 3 6 3 3 , - 9 , 9 7 6 3 , - , 0 5 7 6 2 , - , 1 4 4 6 2 , 9 , , , , , 9 3 4 6 6 4 6 0 4 0 7 5 , 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 .
s t n e m e t a t s l a i c n a n fi 59 fi fi fi n a n c i a l s t a t e m e n t s .
, fi fi t s a n d r e s e r e s , 8 2 5 8 8 4 9 , 7, 7 7 5 6 2 3 , , 3 6 0 9 0 9 3 4 5 7 9 1 , , 6 0 9 8 4 , 5 6 2 9 7 , 8 6 8 0 7 4 2 , , 2 3 1 0 8 , , 9 8 9 , 8 , 2 1 6 4 5 , , 9 , 8 8 - - 8 8 4 7 , 1 0 3 7 5 7, 6 2 8 - - , , 8 - - - - , 3 3 5 7 1 , , 9 8 9 , , 8 2 8 1 9 5 7 , 7, 7 9 7, 2 6 8 , 3 6 0 9 9 7 3 4 5 8 3 8 , , 7 1 3 5 9 , 6 3 9 2 5 , 8 7 1 4 3 1 3 , , , , 9 3 3 1 , 8 , , , 9 8 , , 9
9 , , 9 , , , , , , , 8 9 , 9 8 - - - - - - - - - - - - - - - - - - - - - - - - - - , , , , 8 9 , , 8 , 9 , , , 9 8 , , 9 8 , , 9 , 9 , 8 9 8 8 , 9 9 , 9 , 8 - - - - , 8 8 9 , , , , 8 9 9 - - 9 , 8 , , 8 8 9 9 , , , , , 8 , , 9 8 $ 0 0 0 2 0 2 2 $ 0 0 0 2 0 2 1 $ 0 0 0 2 0 2 2 $ 0 0 0 2 0 2 1 $ 0 0 0 2 0 2 2 $
 ( “ R F ” ) I B e n e fi t F u n d ( “ S D B F ” ) $ 0 0 0 2 0 2 2 T o t a l $ 0 0 0 2 0 2 1 , 8 , , 9 9 9 , , 8 9 , 9 8 , 8 1 7 7, 7 1 1 , 2 9 3 2 0 , , 9 , 8 9 9 , 8 2 0 7, 0 3 1 , 9 3 3 1 , 9 , 9 , 60 A N N U A L R E P O R T 2 0 2 2 , , $ - 9 9 , 9 9 3 2 , , 9 9 8 , , 9 , - 9 , 8 9 , , 8 4 2 4 6 6 6 , , 9 3 4 3 5 9 6 , 9 , 7 4 9 1 , , 8 9 , , 8 , - - 9 , 1 0 3 4 7 2 , , 3 3 8 9 7 2 , 0 0 0 8 8 3 6 , 9 , 8 9 , , , 7 0 2 1 7 6 6 , , 8 8 , , 3 6 4 3 1 5 1 , 9 , , 8 8 3 0 3 7, 2 7 1 , - , 0 5 3 4 5 , - 8 8 , 5 8 5 8 5 , - 9 , 0 9 4 1 7 , - 8 , 6 7 0 1 8 , 8 8 , 8 8
8 8 , 8 8 , 9 , , 3 2 6 7, 8 3 1 , 2 4 6 7, 8 5 1 , 1 1 7 7, 7 1 8 , , 2 4 7 0 8 6 8 , 7 9 2 6 5 , 4 8 9 0 6 , 1 9 7 5 4 3 , 9 0 9 0 6 3 , , 3 2 6 5 7 7 7, , 9 4 8 8 5 2 8 , 1 2 0 2 0 0 0 $ l a t o T 2 2 0 2 0 0 0 $ ) ” F B D S “ ( d n u F t fi e n e B I ) ” F R “ ( fi $ 1 2 0 2 0 0 0 $ 2 2 0 2 0 0 0 $ 1 2 0 2 0 0 0 $ 2 2 0 2 0 0 0 $ : e s i r p m o c s t fi fi e n e b r e b m e m l a t o s t fi .
s t n e m e t a t s l a i c n a n fi fi 61 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 Fiji National Provident Fund tatement of cash os or the year ended ne ash os from oeratin actiities Interest received Dividends received Property rentals received Other income received Payments to suppliers and employees Notes 2022 $000 9, 9,9 9,8 ,8 ,8 2021 $000 8, ,9 8, ,99 ,88 Net cash generated from operating activities ,8 , ash os from inestin actiities Government securities maturedacquired Other securities maturedacquired oans and advances providedrepaid Term deposits maturedinvested Deposit for ATH Share Rights Issue Deposit for ATHI Share quity investments acquireddisposed Purchase of property, plant and equipment Acquisition of intangible assets Amount spent to acquiredevelop investment properties 8, , ,8 , -
- ,9 , ,8 ,8 8, , , , - 8, ,9 ,9 Net cash fromused in investing activities , , ash os from financin actiities Contributions received from employers Contributions received from members Withdrawal payments to members Payments for COID-9 assistance Pension annuity paid to members Finance lease repayments Net cashused in from financing activities Net increase decrease in cash and cash equivalents Cash and cash equivalents at beginning of the financial year ,88 9, ,9 ,8 , 9 8, , , 99, ,8 9 9,8 ,8
8, 9, 9,9 98,88 ash and cash eialents at end of the financial year 8 537,987 596,257 The statement of cash flow is to be read in conjunction with the notes to and forming part of the financial statement.
62 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 1 General information The Fiji National Provident Fund the Fund is a defined contribution superannuation fund domiciled in Fiji.
The address of the Funds registered office is at llery Street, Suva.
The financial statements of the Fund as at and for the year ended une 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 payable on members death as per the FNPF Act 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 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 9.

nder the FNPF Act, the liability of employers is limited to making contributions as defined in section 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 9.
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 .

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 embers on September .

 mmary of sinificant accontin olicies 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 .
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 Funds investment and operation activities and accounts for all equity interests at fair value.
As per IAS , the Fund has prepared a separate financial statement to provide a more comprehensive and precise financial statement for its members in relation to the Funds 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 Funds 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 .
2.2 Changes in accounting policies and disclosures a Standards issed t not yet eective A number of new standards, amendments to standards andor interpretations which have been issued that are effective in future accounting periods that the Fund has decided not to adopt early Amendments to IAS Property, Plant and quipment Proceeds before Intended se Amendments to IFRS Reference to Conceptual Framework Amendments to IAS Onerous Contract – Cost of Fulfilling a Contract Annual Improvements to IFRS 8- However, this did not have a material impact on the Fund.
Standard issed and adoted No new standards, amendments and interpretations are expected to have a significant effect on the financial statement.
A N N U A L R E P O R T 2 0 2 2 63 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined c anges in acconting olicies The Fund has consistently applied the accounting policies to all periods presented in this financial statements.
orein crrency translation a nctional and resentation crrency 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.
oreign crrency 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.

 Proerty lant and eiment 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 assets 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.


easehold land is accounted for in accordance with note ..
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 ehicles Furniture, fittings and equipment Computer equipment and software easehold land Buildings Plant and machinery – years Term of lease – 8 years – 8 years – years – years The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each financial year end.
An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount Note ..

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.
64 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined 2.5 Intangible assets contined 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 assets 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.
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.

 mairment of nonfinancial assets The carrying amounts of the Funds 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 assets 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 assets 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.
A N N U A L R E P O R T 2 0 2 2 65 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined 2.8 Financial instruments contined Financial Assets a ecognition and initial easreent 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 FTP, 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.

 lassification On initial recognition, a financial asset is classified and measured at amortised cost or fair value through profit or loss FTP.
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 FTP - - 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 FTP.

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 FTP if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
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 managements 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 Funds 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.
66 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined inancial instrments contined siness odel ssessment contined 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 terms that may adjust the contractual coupon rate, including variable rate features - contingent events that would change the amount or timing of cash flows - - prepayment and extension features and - terms that limit the Funds 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 Sseent easreent 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.
ovement in fair value of equity investments are recognised as gainloss 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.

d airent The Fund recognises loss allowances for expected credit loss Cs on financial assets measured at amortised cost and loan commitments issued.
The Fund measures loss allowances at an amount equal to lifetime C, except for the following, which are measured as month C - debt securities that are determined to have low credit risk at the reporting date and - other debt securities, loans and advances, term deposits and bank balances for which credit risk i.e.
the risk of default occurring over the expected life of the financial instrument has not increased significantly since initial recognition.

oss allowances for other receivables are always measured at an amount equal to lifetime C.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating C, 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 Funds 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 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.
A N N U A L R E P O R T 2 0 2 2 67 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined inancial instrments contined d airent contined ifetime Cs are the Cs that result from all possible default events over the expected life of a financial instrument.
month Cs are the portion of Cs that result from default events that are possible within the months after the reporting date or a shorter period if the expected life of the instrument is less than months.

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

- - Cs 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 Cs attributable to those financial assets, as detailed in note .
b reditimaired 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.
vidence 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 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.
financial assets measured at amortised cost as a deduction from the gross carrying amount of the assets loan commitments generally, as a provision Presentation of alloance for E in the statement of net assets aailable for benefits oss allowances for C are presented in the statement of net assets available for benefits as follows - - - where a financial instrument includes both a drawn and an undrawn component, and the Fund cannot identify the C 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 rite-o 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.
68 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined inancial instrments contined e rite-o contined 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.
erecognition 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 odifications o 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.

Financial liabilities a lassification, sseent easreent 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.

 erecognition 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 .8.
Receivables are categorised as being at amortised cost under financial assets.
A N N U A L R E P O R T 2 0 2 2 69 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined 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.

s a lessee i.

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 Funds incremental borrowing rate.

Generally, the Fund uses its incremental borrowing rate as the discount rate.
ease 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 Funds 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 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.
70 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined ii.
s 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 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.
1 Emloyee entitlements a ages and salaries and sic leave iabilities for wages and salaries and incentives expected to be settled within 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.

 erination enefits 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 months after the balance date are disclosed at their present value.

c nnal leave, long service leave, gratity enefits and retireent enefits 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.
xpected 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 ons 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.

1 ther ayables and accrals Other payables and accruals are measured at amortised cost.

2.14 Income tax The Fund is exempt from income tax under Part of the Income Tax Act .
Hence, income tax is not separately accounted for in the Funds 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.
A N N U A L R E P O R T 2 0 2 2 71 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined 1 iability for accred benefits The liability for accrued benefits is the Funds present obligation to pay benefits to members and beneficiaries.
It has been calculated as each Funds 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 .
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.
nder the FNPF Act, the amount of contributions for an employee for a month is the amount equal to 8 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 contribution by the employer.

The legislation allows for additional contributions to be made.
In response to the effects of COID-9 pandemic on the Fijian conomy, the contribution rates were reduced to a total of in FY and increased to in FY being for contribution from the employer and deducted from the total wages of the employee.
The contributions shown in the statements of changes in member benefits represents total contributions received receivable from employers and members.

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 atre timin of satisfaction of erformance obliations and sinificant ayment 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 Fees 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.
ease 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 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.
72 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne mmary of sinificant accontin olicies contined 1 omaratie fires 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 of the total benefits accrued to members of the Fund as required under the FNPF Act 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 Ssidiaries - 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 June 2022 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.

ssociates - 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 and IAS 8 in the consolidated financial statements.

3.
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 Funds 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 FNPFs Board Investment Committee FNPFs Corporate Governance and nterprise Risk Department and FNPFs 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 Funds 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 aret ris arket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
arket 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 oreign ecange ris 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 and PG.

Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.
A N N U A L R E P O R T 2 0 2 2 73 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined a aret ris contined i oreign ecange ris contined The Funds 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 Funds total exposure to fluctuations in foreign currency exchange rates at the balance sheet date were as follows amounts denominated in FD Assets Cash and cash equivalents AUD NZD USD Foreign equities AUD USD PGK Commercial Lending USD iailities AUD USD EURO 2022 $000 2021 $000 ,8 9 ,9 ,98 , 8, ,9 - - - , , , 8,9 ,9 - - - - 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined a aret ris contined (i) Foreign exchange risk (continued) Sensitivity Analysis Following analysis of historical data over the past years and expected currency rate movements during the financial year together with consultation with the investment consultant, the Funds Investment Department considered a movement in the Fiji Dollar as reasonably possible for the reporting period.
This analysis assumes that all other variables, in particular interest rates, remain constant.
A strengtheningweakening of the FD against the AD, SD, PG and ND at une would have increaseddecreased the income statement and net assets by the amounts shown below Assets ne USD AUD PGK NZD ne 1 USD AUD PGK NZD Liabilities ne USD EURO ne 1 USD EURO (ii) Price risk arryin Amount $000’s 9, ,8 8, 9 ,88 , ,9 - - - - Impact on net assets -10% $000’s , , ,9 72,540 , ,9 9,8 63,929 - - - - - - +10% $000’s , 9, , 55 9, 8, ,99 55 - - - - - - The 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 Funds investments in equities are largely those which are publicly traded on the South Pacific Stock xchange for local investments, Port oresby Stock xchange and Australian Stock xchange for offshore investments.

The table in the following page summarises the sensitivity of increases decreases of the above two exchanges prices on Funds 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.
A N N U A L R E P O R T 2 0 2 2 75 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined a aret ris contined (ii) Price risk (continued) Assuming that the equity investment prices increased decreased in value by it would have had an equal but opposite effect.
Sensitivity Analysis Index South Pacific Stock xchange Australian Securities xchange Papua New Guinea Stock xchange iii ash flo interest rate ris arryin 2022 $000 ,9 , 8,9 Impact on net change in assets 2022 $000 , ,8 ,8 , 2021 $000 ,8 ,9 ,9 , 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 .

 to .

 at une .
This is mainly due to the reduction occurred in the government bond yield curve in FY.

The calculated proportion of RIF asset cash flows was .

 under this assumption and assumptions stated in note b, this means that .
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 redit ris 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 Funds 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 lossesreversals 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 A N N U A L R E P O R T 2 0 2 2 2022 $000 , 8 ,8 8 1 2021 $000 , 8, , 20,473 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined b redit ris contined onts arising ro ected redit oss These balances largely represent reversal of impairment on 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.
nts, asstions and tecnies sed or estiating iairent.

Refer to accounting policy in Note .8 d.
Significant increase in credit ris 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 Funds historical experience and expert credit assessment and including forward-looking information.
enerating te ter strctre o Proaility o ealt P 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.
odified 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 COID-9 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 were initially provided from April to une .
Due to the second wave of the pandemic and continued closure of borders and restrictions in international travel, an extension of repayment holiday was provided until une .

The re-opening of borders in December and gradual easing of COID-9 restrictions have had a tremendous positive impact on the hotel operations, with return to operational normalcy and profitability.
ajority of the hotel loans will be recommencing with repayments from uly .

oans 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 COID-9 for hotels is not a significant increase in credit risk and remain in the same stages.
Interest rates for several loans were reset during the year in line with prevailing market rates, which was in accordance to the contractual agreement.

Furthermore the restructuring did not result in any change to the outstanding loan balance.
efinition o dealt 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 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 A N N U A L R E P O R T 2 0 2 2 77 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined b redit ris contined efinition o dealt contined - quantitative – e.g.
overdue status and non-payment on another obligation of the same issuer to the Fund and - 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.
ncororation o orard-looing inoration 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 C.

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 -.

 in determination of expected credit losses.

The oss Given Default GD estimate for selected loans were also adjusted.
easreent o The key inputs into the measurement of C are the term structure of the following variables - probability of default PD - loss given default GD - exposure at default AD.

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 .9 to .9.

GD is the magnitude of the likely loss if there is a default.
The Fund estimates GD 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.

GD for loans and advances range from to .
The GD 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.

AD represents the expected exposure in the event of a default.

The Fund derives the AD from the current exposure to the counterparty and potential changes to the current amount allowed under the contract including amortisation.
The AD is generally the gross carrying amount of the financial asset.

As for expected losses a factor is applied to drawn and undrawn committed exposures.

ollateral anageent Collateral is used to mitigate credit risk, as the secondary source of repayment in case the counterparty cannot meet its contractual repayment obligations.
act o - andeic on te credit ris eosre The first onslaught of the COID-9 pandemic in arch and the second wave in April had caused significant deteriorations in economic conditions for some organisations and an increase in economic uncertainty for others.
As a result, some counterparties had undertook to seek reliefs on repayment to mitigate the impact on their businesses and industries.

The reopening of borders and easing of COID-9 restrictions has had a positive impact on these businesses and industries and have in turn positively affected the assumptions about the collectability of the financial assets and hence the expected credit loss Cs.
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 organisations own responses to determine the various possible future scenarios which forms the basis of their assumptions in their estimation of C.
78 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined b redit ris contined ai eosre to credit ris 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 customers ability to repay probability of default PD and the loss in the event of default GD 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 Funds significant end-of-year concentrations of credit exposure by portfolio type were as follows, before impairment Cash and cash equivalents Investment income receivable Term deposits Government Bonds Other Fixed Interest Securities oans and advances – uasi-government loans oans and advances – commercial loans Other receivables 2022 $000 ,98 , 9, % 9 2 2 2021 $000 9, 8, , ,8,9 ,9,8 9, ,9 ,,9 9,9 1 1 20 2 , ,8 ,99,9 ,889 % 10 2 1 1 9 2 ,8, 100 ,,9 100 The following table presents the Funds financial assets held with counterparties based on S&Ps 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.
oncentration by credit ratin 2022 2021 A- to A BBB- to BBB BB- to BB B- to B CC to CCC NR % 11 - 9 3 3 % 10 - 3 3 8 100 100 A N N U A L R E P O R T 2 0 2 2 79 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined b redit ris contined oncentration of credit eosre contined Credit risk concentration in loans and advances disclosed in note are as follows 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 Sensitivity Analysis 2022 $000 ,9 - , - , - - - ,99 ,9 , ,9 , % - 2 - 13 - - - - 2 - 8 3 8 2021 $000 ,8 - , - , - - 202 , , , , 9,
9, ,9 % - 3 - - - - - 2 1 20 3 1,281,438 100 1,145,646 100 The modelled C 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 - change in GD at une would have increaseddecreased the net change in net assets and net assets by the amounts shown below Loans and advances Loans and advances PD - GD - ncrease ecrease $000 8 ,8 $000 ,8 oans and advances The Fund adopts a similar approach to that adopted for debt securities to its consideration of Cs 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined b redit ris contined ai eosre to credit ris The following table contains an analysis of the credit risk exposure of loans and advances for which an C allowance is recognied.
The Gross carrying amount of loans and advances below also represents the Funds maximum exposure to credit risk on these assets.
Lifetime ECL not credit- Lifetime ECL credit- 12-month 2022 2021 ECL impaired impaired Total Total Stage 1 Stage 2 Stage 3 $000 $000 $000 $000 $000 Credit grade Standard Special mention Substandard Doubtful Loss Gross carryin amont oss allowance arryin amont Credit-impaired assets Loans and advances Total credit impaired assets 9,88 , - - - - - - - - ,,9 9,8 - - - , , , , - - - , , , 790,886 272,026 218,526 1,281,438 1,145,646 , ,999 , 9, , 787,634 259,027 65,765 1,112,426 974,413 Gross exposure Impairment allowance arryin amount Fair value of collateral held , 15,522 51 , 15,005 , 24,770 The following tables show reconciliations from the opening to the closing balance of the loss allowance for loans and advances for the Fund.
oss alloance at 1 ly ovements with impact to income statement Transfer from stage 1 to stage 2 New loans originated Loans that have been derecognised Changes in PDsGDsADs Changes to model assumptions and methodologies Lifetime ECL 12-month not credit- impaired Stage 2 $000 152,407 - - - - , , ECL Stage 1 $000 4,383 - - 8 , 8 111 Lifetime ECL credit- impaired Stage 3 $000 14,443 - - - - - oss alloance at ne 3,088 151,657 14,267 Total $000 171,233 - - 8 , ,9 ,8 169,012 A N N U A L R E P O R T 2 0 2 2 81 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined b redit ris contined ai eosre to credit ris 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 carryin amonts at 1 ly ovements 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 12-month Lifetime ECL Lifetime ECL ECL not credit- credit- Stage 1 $000 657,931 - - ,9 , - impaired impaired Total Stage 2 Stage 3 $000 $000 $000 267,650 - 220,065 - 1,145,646 - - - - - - - ,8 - , , , Gross carryin amonts at ne 795,262 267,650 218,526 1,281,438 as and cas eivalents and er eosits The Fund held cash and cash equivalents of ,98, and term deposits of 9,, at une 9,, and ,,.
The cash and cash equivalents and term deposits are held with banks, which are rated A- to B-, based on Standard and Poors S&P ratings.

Impairment on cash and cash equivalents has been measured on the 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 Cs for cash and cash equivalents to those used for debt securities.

et investent secrities Debt investment securities includes government bonds and other fixed interest securities.
The Fund held debt investment securities of ,,9, at une ,,8,.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 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 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 Funds 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined c iidity ris iquidity 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.
The financial liabilities of the Fund at une comprise of net assets attributable to members.

As at une , the financial liabilities were worth ,,, and the financial assets were valued at 8,,8,.
The financial assets are added to the guaranteed interest income from Fixed Income risk free portfolio investments worth ,,8, thereby topping up the financial assets to ,88,8,.

pon matching the financial assets to liabilities, there a residual net positive position of ,,9,.
The Asset and iability 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 Fijis RBF exchange regulations.

RBF xchange Control approves all outward funds transfers required for offshore investments.
Due to an almost non-existent secondary market, most of the Funds 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.

oreover, commercial loans and property investments are also part of the Funds 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 Funds long-term assets and liability position.
The Funds Treasury department manage the above liquidity risk through - monthly reporting on the position of these investments to the Board and Board Investment Committee BIC - - monitoring of maturities of investments and investment outflows including the forecasting of the availability of an established prudent asset allocation strategy which has been approved by the Board and funds.
The Funds liquidity risk is managed on a daily basis in accordance with the Funds 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.
The tables below shows the Funds financial liabilities and assets for the year ended une .

xcept for RIF financial liabilities 9,8,, all other Funds financial liabilities and assets are based on their contractual maturities using undiscounted cash flows.
Financial liabilities ember balance-Fund Allocated to members – Retirement income Fund Allocated to members - SDBF On demand $000 9,9 - - Less than or equal to 3 months $000 ,8 ,8 3 – 12 months 1 to 5 years Greater than 5 years Total $000 $000 $000 $000 8, 9, ,9,8 6,671,207 9,8 8,8 9, 279,833 8 , 89 2,399 Total member liabilities 596,397 63,575 178,841 1,021,230 5,093,396 6,953,439 Other payables and accruals Lease liabilities ,9 - ,9 ,88 - - - , , 23,050 37,732 otal financial liabilities 600,089 70,545 191,955 1,023,665 5,127,967 7,014,221 A N N U A L R E P O R T 2 0 2 2 83 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne inancial ris manaement contined 1 inancial ris factors contined c iidity ris contined Financial Assets Cash and cash equivalents Term deposits Government securities Other fixed interest securities quity investments Loans and advances otal financial assets Interest income – Fund Interest income - RIF Interest income - SDBF otal financial assets including interest income On demand $000 ,98 Less than or
,98 Less than or equal to 3 months $000 - - - - - - 537,987 - - - , ,8 , - , 89,055 9, , ,8 3 – 12 months $000 - , 8,8 , - 1 to 5 years $000 - , Greater than 5 years $000 - - Total $000 ,98 9, 8, ,,98 ,8,9 , - 9, - ,9,8 ,9,8 ,9 9, 8,9 ,8,8 223,882 1,159,838 6,231,924 8,242,686 9,8 99, ,8, ,,9 ,8 , , , , ,9 8,8 ,9 537,987 156,272 406,357 2,228,845 7,459,057 10,788,518 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 Funds objective when managing capital is to safeguard the Funds 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 Funds 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 stimates 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 mairment 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 .8 d and note .b.
b mairment of roerty lant and eiment 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 impairment provision is recognised.
84 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne ritical accontin estimates and dments contined c ctarial resent ale of accred 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 annuity.

Asset cash flows are also projected and the rate of future reinvestment 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 .

 per annum ..
The methodology requires the proportion of projected asset cash flows, which together with assumed reinvestment returns, is just sufficient to meet the projected annuity payments and expenses as they fall due.

The implied discount rate after the allowance for expenses is .

 pa .8.
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 une , the determination was carried out by r. Peter artin, Fellow of the Institute of Actuaries of Australia, in accordance with the International Standard of Actuarial Practice issued by the International Association of Actuaries.
Determination of the SDBF reserve for claims incurred but not reported was also carried out by r. artin, 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 and catastrophe reserve.
d air ale determination for financial assets and inestment roerties carried at fair ale The Fund carries a number of its financial assets, being equity investments at fair value.

Refer to Note and for details.

In addition, it carries its investment properties at fair value, as detailed in note .
Eity inestments quity investments are carried at fair value at balance date based on market information andor the best estimates of fair value as determined mostly by independent and knowledgeable valuers.

Whilst there may be some uncertainties around the forward looking assumptions, there are steps and processes undertaken to ensure that these assumptions are sense checked to provide a comfort of reasonableness.
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 discount and yield rates adopted by the valuers are reflective of Fijis broad-based recovery including factors inherent to each property such as the security of income, type of property age and condition, and its location.
However minor adjustments were made as there remains downside risks to the medium-term outlook due to the rising inflation, global supply chain bottlenecks, the risk of new variants, a slower-than-expected tourism recovery and ongoing threats from natural disasters and climate change which were captured through the growth rate adopted for vacancy as well as expense and rental.

Therefore, discount rates ranging from .


 to 9 were used to adjust the assumptions which were used to measure the fair value of investment properties.

The impact of investment properties valuations at balance date and in future periods are included in notes and .
A N N U A L R E P O R T 2 0 2 2 85 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne ritical accontin estimates and dments contined Expected credit losses The Funds 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.

While the expected credit losses were affected in the previous years due to the varying impact of COID-9 on the counterparties, the level of uncertainty which had subsisted over the past financial years has decreased with the reopening of borders in December .
This, along with other actions such as easing of pandemic related restrictions has mitigated the risk of material adjustments 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 improvement in sovereign credit rating, positive forecasts of Gross Domestic Product and global growth forecasts to determine the various possible future scenarios which forms the basis of their assumptions in their estimation of C.

Financial impact from the expected credit losses at balance date are included in notes .
b and , , and .

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 evel fair value measurement are those instruments valued based on quoted prices unadjusted in active markets for identical assets or liabilities.
evel fair value measurements are those instruments valued based on inputs other than quoted prices included within evel that are observable for the asset or liability, either directly i.e., as prices or indirectly i.e., derived from prices.

evel 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.
86 , fi d n a s t e s s a l a i c n a n fi fi $ 0 0 0 $ 3 l e v e L 0 0 0 $ 3 l e v e L 0 0 0 $ 1 l e v e L l a t o T 0 0 0 $ t n o m a n i y r r a 0 0 0 $ 0 0 0 $ fi d n a s t e s s a l a i c n a n fi .
y h c r a r e i h e u l a v r i a f , 8 9 , , , 8 , , 9 , 8 9 , , , , 9 , , , , , 9 , , - - , , , 9 , - , - - - , , , 9 , 9 , , - - - - - - 9 , , 9 8 , 9 , 9 , , , 8 , 9 , , , - , 9 8 , - - 9 , - , 8 , 9 , , 8 9 , - - 9 , - - , , , e n
e n t a s a e c n a l a * * s d n o B i j i F 1 e n t a s a e c n a l a * * , r e v e w o H .
fi e n e b t n e m e r i t e r , .
, , , , , , e r o f e r e h T .
87 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 5 air ale estimation contined 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.
Eity inestments Balance at 1 July nrealised gains losses included in income statement Acquisition Disposal Balance at 30 June Investment properties Balance at 1 July nrealised gains losses included in income statement Net Acquisition Right of use asset Balance at 30 June 2022 $000 2021 $000 ,, ,8 , - ,, ,,88 , ,9 , ,, , , 21 ,9 8, , ,9 , 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.
ye Valuation technique inificant unobservable inputs Government Bonds Investment in other equity investments Investment Properties Not applicable arket comparison The fair value of the long term investment securities is based on market prices published by the Reserve Bank of Fiji.

The valuation techniques, significant unobservable inputs and inter-relationships are set out in note .


Inter-relationship beteen sinificant unobservable inputs and fair value measurement Not applicable ensitiity analysis For the fair values of equities – investment in other equity investments and investment properties, a reasonable possible change of and .
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 ther eity inestments Discount rate - Adjusted market multiple - Cost of equity rates - Investment properties Capitaliation rates - .
Rate per acre - 88 A N N U A L R E P O R T 2 0 2 2 Increase $000 Decrease $000 , , ,8 ,8 , 9, , , ,8 , 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 6.
Income a nterest income Fixed interest securities - Government securities - Other fixed interest securities Loans and advances Term deposits Other interest income b iidend Dividends from other equities Dividends from related parties 7.
hane in fair ale of eity inestments a air ale chanes eity inestments Unrealised gains on investments Realised gains on investments Net fair value gains b et forein echane ainloss nrealised exchange gainloss Realised exchange losses et forein echane ainslosses 8.
Other income Other income includes the following specific items Surcharge income Other revenue 9.
General administration expenses Auditors remuneration - Audit – PwC - Other services - PwC Directors fees Electricity Insurance oss 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 Note 2022 $000 2021 $000 ,8 , 9, ,9 , 319,041 9, , 100,077 ,8 ,98 167,392 ,9 - 20,096 8 ,99 2,484 11 , - ,8 , ,99 29,097 ,99 , ,9 , 8, 331,315 ,8 , 71,023 , , 167,564 9, 51 , 1,979 8 , 20 ,9 , , 25,787 A N N U A L R E P O R T 2 0 2 2 89 b Note 9a 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 Fiji National Provident Fund otes to and formin
 art of the financial statements or the year ended ne a Other operating and general expenses Advertising 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 10.
Term deposits ocal banks and financial institutions– local currency Impairment provision atrity reresented as ess than or equal to months 3 to 12 months to years 11.
Government securities Fiji Government Registered Stock Impairment provision atrity reresented as ess than or equal to months 3 to 12 months to years Greater than years 2022 $000 ,8 8 8 103 232 , 9 30 6,994 2021 $000 , 8 9 8 20 , 6,473 9, 109,353 , , , 109,500 , 214,787 , , , 215,500 ,8,9 ,9 3,681,020 ,9,8 ,8 3,495,699 ,8 8,8 8, ,,98 3,682,937 ,9 ,99 8, ,98, 3,497,827 The above investments are accounted for at amortied cost and measured in accordance with note .8 to the financial statements.
90 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 12.
ther fied interest secrities Fiji Bonds Impairment provision atrity reresented as Less than 3 months 3 to 12 months to years 2022 $000 9, 38,956 , , , 39,000 2021 $000 , 8 55,918 , , , 56,000 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.

13.
Loans and advances oans and advances quasi-government Loans to related parties Customer term loans Staff loans Provision for Impairment atrity reresented as ess than or equal to months 3 to 12 months to years Greater than years Note b 2022 $000 ,9 ,, 98, 1,281,438 9, 1,112,426 , ,9 9, 8,9 1,281,438 2021 $000 ,8 ,8 , 1,145,646 , 974,413 ,88 , , 88,8 1,145,646 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 ad- vances are as follows - - - uasi government loans- Government Guarantee or a Debenture over all the assets.

During the year, no quasi loans were disbursed oans 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 imited, the loan is largely unsecured Refer below for further comments.

During the year, the Fund advanced additional loans to Natadola Bay Resort Pte imited and Dubbo Pte imited.

New loans were disbursed to odafone Fiji Pte imited and Amal- gamated Telecom Holdings Pte imited Customer term loans – head security is a registered first mortgage over property and improvements or Government Guarantee.
otus Garments imited continued to progressively draw on the loan previously approved.

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 COID-9, which impacted the travel and tourism industry, repayment holidays were approved for the loans to Air Pacific imited and the hotels in FY.
Due to the second wave of the pandemic in April , the moratoriums for hotel loans were extended until une .

The moratorium for several loans customers have ceased on th une and repayments will commence from next financial year.

Further details related to hotel loans are outlined in Note b.
A N N U A L R E P O R T 2 0 2 2 91 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 13.
oans and adances contined atadola ay esort Pte imited The carrying value of the loan provided to NBR by FNPF is ,, 98,99,.

Further details of the loan are in Note b.
As at year end, the Fund is carrying a provision for impairment against the loan of ,, ,,.
omi ay esort imited The carrying value of the loan provided to BR for the omi Resort development is ,9, ,9,.
The loan is secured by - - First registered Debenture over the assets of the company First registered mortgage over Development lease D Ref 8-, and portion of freehold land described as DP 98 - Assignment of Income - Assignment of Bank Accounts BSP Ac & HFC Ac Movements in the impairment provision ollectiely ssessed Proisions Balance as at 1 July 2020 Balance as at 30 June 2021 Balance as at 30 June 2022 ndiidally ssessed Proisions Balance as at 1 July 2020 New and increased provisioning Provisions no longer required Balance as at 30 June 2021 New and increased provisioning Provisions no longer required Balance as at 30 June 2022 Loans to related parties $000 Customer term loans $000 Staff loans $000 - - - ,9 , - , , 154,117 - - - 9,99 ,8 - , 14,825 104 104 70 - - - - 70 Total $000 104 104 70 ,8 8, - , ,8 , 169,012 Total provision for impairment at 30 June 2021 155,572 15,557 104 171,233 Total provision for impairment at 30 June 2022 154,117 14,825 70 169,012 Total impairment provisions as at balance date are Collectively assessed provisions Individually assessed provisions 14.
Eity inestments Traded equities Other equity investments 92 A N N U A L R E P O R T 2 0 2 2 Note a b 2022 $000 8,9 169,012 2021 $000 ,9 171,233 8,9 ,9 ,, 2,591,824 ,, 2,225,531 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 1a Traded equities evel - ocal listed equities evel - Foreign equities Local Unit trust ocal unlisted equities 2022 $000 ,9 ,9 ,8 ,9 825,094 2021 $000 , ,88 9, ,8 763,391 - evel equity investments are classified at fair value through Profit or loss and the Fund uses the bid price as at reporting date.
- For nit Trusts, the Fund uses exit prices at the reporting date.

- ocal unlisted equities include investments in Fiji Gas imited and Yatu au Company imited.

These are classified at fair value through Profit or loss and is valued using ontiki Price atching Services Over the Counter facility as these shares are traded by a willing buyer and willing seller at the reporting date.
b ther eity inestments nestment in other eity inestment consists of the folloin Name Principal activities Place of business Valuer % Owner- ship 2022 Fair value $000 2021 Fair value $000 Telecommunications Fiji Subsidiaries Amalgamated Telecom Holdings Limited Home Finance Company Pte Limited FNPF Holdings PNG imited Yatule Beach Resort Pte imited FNPF Hotel Resorts Pte imited FNPF Nominees Limited Natadola Bay Resort Pte Limited Momi Bay Resort Pte Limited Dareton Pte Limited Health Care Fiji Pte td Financial services Investment Resort operations Resort operations Nominee Services Resort operations Resort operations Land development Healthcare Grand Pacific Hotel Pte td Farleigh Limited Resort operations Resort operations Associates Fiji Airways imited Tropic Health Incorporated Fiji imited Active Fiji Co. imited Halabe Investments imited Fiji Ports Corporation imited Aviation Medical Tourism Real Estate Wharfage Bligh Water Shipping imited Shipping FTI Consulting Australia Pty Ltd FTI Consulting Australia Pty Ltd Management Assessment Colliers New ealand Colliers New ealand Management Assessment Colliers New ealand Colliers New ealand Lomara Associates Management Assessment Colliers New ealand Colliers New ealand FTI Consulting Australia Pty td Management Assessment Management Assessment Management Assessment FTI Consulting Australia Pty Ltd Management Assessment 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 td .
8,8 , .

 100.0 100.0 100.0 100.0 100.0 100.0 100.0 8.

 100.0 100.0 30.0 .

 23.0 .

 9.

 .

 9.
8,9 ,8 , - - 8,88 ,8 8, , 9,9 9, - - , 9 ,8 ,9 - - - 8, ,9 8,8 ,8 - - - 88 ,9 - 9, - 8, 1,766,730 9, 1,462,140 A N N U A L R E P O R T 2 0 2 2 93 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 14.
Eity inestments contined b ther eity inestments contined Investment in other equity investment consists of the following The above investments have been measured at fair value in accordance with note .8ci and ..
ir Pacific iited ii irays On th une , the Fund acquired a .

 stake in Air Pacific imited AP trading as Fiji Airways for 9,,.
The investment by FNPF was part of the unsubscribed shares from the initial capital raising undertaken by AP to its existing shareholders in .
FNPFs due diligence process commenced in September and was conducted by reputable local and international firms with extensive knowledge of the aviation industry and expertise in the areas of valuation, deal advisory, financial and tax due diligence, legal due diligence, technical due diligence and peer review.
The key advisors involved in the significant deal included AN Corporate Advisory out of Australia, IBA one of the worlds leading aviation advisors, Norton White Australian law firm, cGrathNicol, Hall & Wilcox, Howards awyers and olony Advisory.

The completion of the deal resulted in FNPF becoming the second largest shareholder in AP, with an entitlement to nominate two Directors on the AP Board.
FTI was also engaged to provide an independent assessment of the value of the Funds interest in Fiji Airways as at une and it was concluded by FTI that the transaction price of .

 per share reflected a reasonable representa- tion of the fair value at 30 June 2022.

ealt are ii Pte iited Health Care Fiji Pte.
imited HCF is a subsidiary of Fiji National Provident Fund and a joint venture with Aspen edi- cal Pty imited, based in Australia.

HCF is the special purpose vehicle that holds the concession agreement with the Fiji Government for the Public Private Partnership PPP for autoka and Ba Hospitals.

During the course of the financial year, both the autoka and Ba hospitals were handed over to HCF.
Similarly, the new Ba Hospital commenced providing medical services from 9th April , whilst for autoka Hospital, there has been considerable progress to firm up the total cost to completing the newly upgraded hospital based on the current designs and buildrefurbishment methodology.
The concession agreement with the Fiji Government is for a period of years inclusive of construction period for autoka Hospital with an option to extend for a further years.

At the end of the concession term, both the hospitals will be handed back to the Fiji Government, free of any encumbrances and in a condition no worse than the hand back conditions noted in the concession agreement.
nvestent on Sseent event FNPF exercised its rights to subscribe ATHI shares and paid for a total of ,, new shares amounting to S,, on th une, .
As at th une , acquisition amount of ,9,989 was recorded under other receivables as shares were not issued on reporting date.

The shares was issued to FNPF in August , whereby, FNPF would ultimately hold an equity interest in ATHI of around .
94 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 14.
Eity inestments contined b ther eity inestments contined alation technie and sinificant nobserable ints The following table shows the valuation techniques used by the independent valuers in measuring evel fair values, as well as the significant unobservable inputs used.
ye Valuation technique inificant nobserable ints Other equity investments HHP -Discounted Cash Flow ethod DCF -Future maintainable earnings F Hotels: -Discounted Cash Flow ethod DCF Weighted Average Cost of Capital WACC 9.9 -.
Note does not include Digitec Communications PNG specific WACC range of -.

 arnings multiple .9x- 8.

x Discount Rate 9.

 -.

 Capitaliation rate 8.

 -Income Capitaliation -.
nterrelationshi beteen sinificant unobservable inputs and fair value measurement The estimated fair value would increasedecrease if any of the significant unobservable inputs were changed arnings multiple was higher increase Weighted Average Cost of Capital were lower increase Discount rate were lower increase Capitaliation rate were lower increase.
Valuation Process FNPF engages independent, reputable and adequately qualified international firms to carry out valuations of its invest- ment in equities.

The valuation firms are selected via a tender process in compliance with the Funds Procurement Policy.

The firms selected to carry out the valuations work with the Fund management team and the investees man- agement team to prepare a business valuation required under IFRS .
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, F, HFC and FPC were carried out by FTI Consulting Australia Pty imited and Colliers International-Auckland was engaged to carry out the valuation of the Funds investments in hotel and resort operations.
FTI Consulting Australia has undertaken the valuation in accordance with the Accounting Professional & thical Standards Board imited Professional Standard APS aluation Services.

The aluation reports are based on in- formation available as at une .
A combination of both Discounted cashflow DCF and Capitaliation of future maintainable earnings CF methodologies were used to ascertain the values at year end.

An illiquidity discount or discount for lack of marketability DO has been factored in arriving at the fair value of the investments.

aluation 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 une .

It must be noted that the valuation assumptions undertaken by Colliers is based on its view at une .
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 b for other equity investment.

The Board reviews and approves the valuation under- taken subsequent to the endorsement by the BIC.
A N N U A L R E P O R T 2 0 2 2 95 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 15.
Investment properties Properties at fair value Balance at the beginning of the year Change in fair value Acquisitions Work in progress Add lease liabilities – leasehold land Balance at the end of the year 2022 $000 ,8 , 438,787 8,99 447,696 2021 $000 9,9 , ,9 ,9 421,826 8,888 430,714 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 inde- pendent 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 evel 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.
There was a change in aluer in whereby omara Associates were engaged to undertake full valuation of the prop- erty portfolio as at une .
The decision to undertake full valuation for as well is to capture the impact of economic recovery on the assumptions that current outbreak has been controlled, herd immunity achieved through vac- cination and the reopening of both internal and local borders.
Therefore, the discount and yield rates adopted by the valu- ers are reflective of Fijis broad-based recovery including factors inherent to each property such as the security of income, type of property age and condition, and its location.
However minor adjustments were made as there remains downside risks to the medium-term outlook due to the rising inflation, global supply chain bottlenecks, the risk of new variants, a slower-than-expected tourism recovery, investor caution in light of the upcoming General lections and ongoing threats from natural disasters and climate change which were captured through the growth rate adopted for vacancy as well as expense and rental.
alation technie and sinificant nobserable ints The following table shows the valuation techniques of the independent valuers used in measuring the fair value of invest- ment property, as well as the significant unobservable inputs used.
Valuation technique ncoe aroac Discounted cash flows DCF In this approach the valuation models of the independent valuers consider the present value of each years 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 year period.

This is done by applying an exit capitalization rate on the 11th year stabilized NOI.

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

The market approach utilizes sales of comparable properties, adjusted for differences to indicate the value for the subject.

inificant unobservable inputs Discount Rate IRR .
-9 xit Capitaliation Rate - xpected rental growth - oid period Annualised Inter-relationship beteen ey nobserable inputs and fair value measurement The estimated fair values would increase decrease if Discount rates- IRR were higher decrease xit capitaliation rates were higher decrease void periods were shorter vacancy - increase arket based manage- the occupancy rate were ment fee - xpected expense growth -.
higher increase xpected rental growth were higher increase and rate per acre and rates per acre were k- m higher increase 96 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 16.
Cash and cash equivalents Cash at bank Cash on hand Cash at bank – restricted Impairment provision 2022 $000 , 222 538,209 , 537,176 2021 $000 9, ,8 9 596,796 ,9 595,687 The amount includes restricted cash of , of government advance held in trust.
The funds will be refunded to Government subsequent to balance date.

17.
Intangible assets Software at cost Balance at the beginning of the year Additions during the year alance at the end of the year ortisation and iairent Balance at the beginning of the year Amortisation charge for the year alance at the end of the year arryin amont t the beinnin of the year t the end of the year 2022 $000 , 20,488 , , 16,042 6,394 4,446 2021 $000 , 20,431 , , 14,037 8,396 6,394 A N N U A L R E P O R T 2 0 2 2 97 , fi fi c e E i m e n t v e h i c l e s M o t o r fi t t i n s F u r n i t u
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 3 7 1 3 7 1 - - - - 4 6 9 - 2 9 , 9 - , 9 9 , 9 - - - - - - , 8 9 9 , 8 8 , 8 9 9 , 9 1 3 3 8 8 , , 9 - - 8 8 , 9 9 - , 1 3 - - - - - - - , 9 9 8 9 , , , , 8 , , , - - - - 1 0 - - - , , 8 9 9 , 8 , 8 , 8 3 6 3 , 8 5 6 7 4 9 9 8 0 1 4 6 4 6 2 9 2 4 9 7 1 4 8 1 5 1 - - , 4 8 6 0 , 3 8 5 5 , 1 4 5 8 3 , 1 4 2 9 4 98 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 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 b 2022 $000 ,8 ,9 2,309 ,9 ,8 , 71,053 2021 $000 , ,9 2,674 , , , 84,125 73,362 86,799 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.
aturity of gross other receivables represented as 1 to 12 months to years ovements in the provisions for impairment are as follows alance at 1 ly New and increased provisioning Provisions reversed alance as at ne 1 New and increased provisioning Provisions reversed alance as at ne 20.
Investment income receivable Note Interest receivable Provision for Impairment Dividend receivable- others Rent receivable Provision for Impairment Dividend receivable from related parties ovements in the impairment provision are as follows alance as at 1 ly New and increased provisioning alance as at ne 1 Provisions reversed alance as at ne 2022 $000 ,8 ,8 90,952 2021 $000 ,9 ,98 106,889 Contributions receivable $000 14,375 , - 17,729 - , 15,229 2022 $000 ,8 9 ,89 9 Other $000 2,361 - - 2,361 - - 2,361 2021 $000 ,9 , ,8 99 bii , 103,115 8,8 106,464 Interest receivable $000 744 Rent receivable $000 297 1,014 942 662 8 479 A N N U A L R E P O R T 2 0 2 2 99 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 21.
ther ayables and accrals Deposits Deferred revenue COID-9 Government assistance Other payables 2022 $000 ,9 222 9, 23,050 2021 $000 ,9 , , 18,929 COID-9 Government assistance of , relates to the funds received from government in advance awaiting to be refunded to Government as the Covid-9 assistance has ceased.
22.

Emloyee entitlements Annual leave Long service leave and gratuity As at 1 July Additional Provisions recognised Paid during the year Carrying amount as at une 23.

Leases a ihtofse assets Balance at 1 July Additions Depreciation charge for the year Balance as at 30 June The incremental borrowing rate for new lease was .
b ease liabilities atrity analysis contractal ndisconted cashos Less than one year One to five years ore than five years otal ndisconted lease liabilities at ne ease liabilities at ne Proerty leases inclded in inestment roerties and riht of se 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 recognized in the statements Total cash outflow for leases 100 A N N U A L R E P O R T 2 0 2 2 2022 $000 98 1,132 , , , 1,132 2022 $000 331 8 356 , , 37,732 9,9 9,389 20 88 365 729 2021 $000 9 9 1,034 , , , 1,034 2021 $000 9 331 , , 38,202 8 9,99 9,357 21 98 264 729 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 24.
et assets aailable to ay benefits et assets aailable to ay benefits eresented by iability for accrued benefits Special death benefit fund reserve Retirement income fund reserve General reserve Note a a b c 2022 $000 8,680,742 ,, ,98 ,99 ,8, 8,680,742 2021 $000 8,177,711 ,88, ,9 ,9 ,8, 8,177,711 Special death benefit fund, Retirement income fund and FNPF reserves includes investment and solvency reserves.
The movements in the reserves are as follows a ecial eath enefit nd esere Balance at 1 July 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 2022 $000 ,9 ,8 , ,9 60,984 2021 $000 9, ,9 ,8 , 56,297 d e The amounts transferred to the Special Death Benefit Fund Reserve of ,8, ,9, represents annual deductions of or less from the accounts of each entitled member.
The amounts transferred from the Special Death Benefit Fund Reserve of ,, ,8, represent disbursements to the nominees of those members who died during the year at 8, 8, per member.
These disbursements are in addition to the accumulated amounts owing to the deceased member.
b etirement income fnd resere Balance at 1 July Addless transfers fromto member benefits Transfer from Transfer to COID-9 assistance Add transfers from statement of change in net assets Balance at the end of the year Note e e 2022 $000 2021 $000 ,9 , , , - , 360,909 , , 8 , 345,791 The amount transferred to the Retirement Income Fund Reserve of ,, ,, represents new annuity purchases previously stated as pension income during the year.
The amounts transferred from the Retirement Income Fund Reserve of ,, ,, represent pension annuities to pensioners whilst amounts transferred to the Retirement Income Fund Reserve during the year of ,, ,, represents investment returns after allowing for operating expenses of , includes impairment reversal on financial assets of 8, impairment on financial assets of 9,9.
c General resere General reserve comprises both the legislative solvency reserve equivalent to of the total benefits accrued to members of the Fund as required under the FNPF Act 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.
Balance at 1 July 2021 Add transfers from statement of change in net assets essadd transfers fromto liability for accrued benefits Balance at the end of the year Notes 27 2022 $000 ,8, , 2021 $000 ,,8 , , 1,587,642 1,387,623 A N N U A L R E P O R T 2 0 2 2 101 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 24.
et assets aailable to ay benefits contined d ontribtions to the nd for benefits The Fund receives contributions from members for investment, which are invested and become available upon retire- ment, 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.
embers purchase annuities by transferring part or all of their FNPF balance upon retirement or incapacity or if a sole nominee, a members FNPF balance on his or her death into the Retirement Income Fund RIF.
The allocation of contributions is set out below FNPF $000 All funds $000 2022 ember contributions, net SDB premiums Purchase of annuities Total 2021 ember contributions, net SDB premiums Purchase of annuities Total e Payments to beneficiaries 2022 2021 Notes aiii a a SDBF $000 - ,8 11,382 - 11,382 SDBF $000 - ,9 11,197 - 11,197 SDBF $000 , ,8 RIF $000 - - - , 14,417 RIF $000 - - - , 13,146 RIF $000 , ,8 8,8 - 383,862 - 383,862 FNPF $000 ,9 - 310,093 - 310,093 FNPF $000 , 9,8 Total benefits paid, excluding pension annuity relating to RIF, amounted to ,999, ,8,.
The details of the payments are as follows Benefit type years and over 2 Death 3 Disability igration Non-Citiens migrating Small accounts -8 Partial including COID-9 9 Housing transfers Total 2022 $000 9,8 ,98 , ,8 , ,9 , 8, 456,625 8,8 ,8 395,244 , 409,661 All funds $000 ,9 ,9 321,290 , 334,436 All funds $000 9,9 ,9 2021 $000 ,9 , ,8 ,8 9,8 ,88 ,98 ,8 493,187 The Fijian Government in collaboration with the Fund in response to the COID-9 pandemic allowed members to access 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 ,8, 99,,.
Total benefits exclude ,, ,, being the amount transferred from FNPF to RIF in respect of FNPF members purchasing annuities.
102 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 24.
et assets aailable to ay benefits contined e Payments to beneficiaries contined The breakdown of payments from RIF is - Sole life annuity - oint life annuity - Term annuity - Top up pension in respect of pre arch pensioners - Commutation - COID-9 assistance 2022 $000 , , , ,8 9 - 25,740 2021 $000 , , ,89 ,8 89 8 25,281 Commutation refers to the lump sum paid in respect of the unexpired portion of the guarantee period for which a deceased annuitant would otherwise have received payment.
The commuted sum is payable to the pensioners 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 .
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 actu- ary 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.
et assets at balance date and liability for accred benefits Notes 2022 $000 2021 $000 a P Balance at the beginning of the year Add transfers from statement of change in net assets Add transfers tofrom general reserve Balance at the end of the year aii aiii ,88, 8, 6,671,207 ,9,9 ,9 , 6,388,000 i llocation of enefits Allocated to Members’ Accounts Unallocated to Members’ Accounts Solvency requirement of of member accounts Other FNPF reserve et assets at end of year ,,98 ,9 6,671,207 ,,8 ,9 6,388,000 , 9, 8,8 8,8 c 1,587,642 1,387,623 8,258,849 7,775,623 The liability for accrued benefits is the Funds present obligation to pay benefits to members and beneficiaries and has been calculated in accordance with Note ..
A N N U A L R E P O R T 2 0 2 2 103 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 26.
et assets at balance date and liability for accred benefits contined a P contined ii enefits accred drin the year Contributions received Benefits paid including SDB claims Interest credited on members’ accounts Net amounts transferred Special Death Benefit Reserve Transfer to Retirement Income Fund Notes 2022 $000 2021 $000 9, ,9 e ,999 ,8 , ,9 a b ,8 , 283,151 ,9 , 106,529 The Board declared an annual interest rate for of .
to be credited to members accounts as at the reporting date ..
iii oement in liability for accred benefits iability for accrued benefits at beginning of year Net contributions* Benefits paid Interest allocated to members Transfer fromto general reserve iability for accrued benefits at end of year Notes 2022 $000 2021 $000 ,88, ,9,9 8,8 ,9 , , , ,9 , 6,671,207 6,388,000 *Gross contributions less SDB premiums deducted.
embers withdrawals including amounts transferred to Retirement income Fund for RIF products purchased by retiring members.
b Liability for future annuity payments Solvency reserve Net assets oement in liability Liability at start of year New purchases xpected reduction for year odel and assumption changes and variation in experience Liability at end of year 2022 $000 9,8 8, 360,909 , , 9, 8 279,833 2021 $000 , ,9 345,791 ,89 , , , 274,301 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 9,8, ,, .
The valuation was carried out by r Peter Colin artin, Fellow of the Institute of Actuaries of Australia, in compliance with International Standard of Actuarial Practice No.

 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 coupon and maturity payments 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.
104 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 26.
et assets at balance date and liability for accred benefits contined b contined 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 - ortality for male life annuitants in in accordance with World Health Organisation 8 Fiji population life table, assuming reduction at all ages with per annum reduction in male rates continuously for 9 years.
ortality for female life annuitants in in accordance with World Health Organisation 8 Fiji population life table, set back year with further reduction at all ages, and per annum reduction in female rates continuously for 9 years.
Ongoing mortality rate reduction for males and females of per annum from ortality for male life annuitants in in accordance with World Health Organisation 8 Fiji population life table, assuming set back years from age with per annum reduction in male rates continuously for 8 years.
ortality for female life annuitants in in accordance with World Health Organisation 8 Fiji population life table, set back year with further reduction at all ages, and per annum reduction in female rates continuously for 8 years.
Ongoing mortality rate reduction for males and females of per annum from - Fiji government bonds will be redeemed at the earliest opportunity that is, up to years before maturity, although not during to years - An average long run market rate of reinvestment of RIF asset cash flows of .
per annum over the term of the current annuities .

 pa - A continuous liquidity allowance of one years worth of annuity payments which does not attract interest one year - An allowance for RIF expenses of .
of annuity payments from time to time ..

The calculated proportion of RIF asset cash flows was ..

This means that .

 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 bp lower .

 per annum is calculated as 8,, 9.

 of the face value of RIF investments.

The liability assuming a reinvestment rate of return bp higher .
per annum is calculated as ,, .

 of the face value of RIF assets.
c iability for claims incurred but not reported IBNR Provision for mortality fluctuation Catastrophe reserve Net assets 2022 $000 ,99 ,9 ,99 60,984 2021 $000 ,9 ,9 9, 56,297 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 variation and systematic impact to the expected annual SDB claims of ,89, ,89, and estimated additional claims related to Covid of ,, ,, during the following financial year.
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 catastrophe presents a theoretical risk to the solvency of the SDBF.
The best estimate for the IBNR liability is ,99,.

The actual IBNR liability will only ever be known with the benefit of hindsight but is reasonably likely to fall between ,9, and ,9,.
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 2022 $000 ,9 , 223 , 2,399 2021 $000 , 88 89 1,947 A N N U A L R E P O R T 2 0 2 2 105 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 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: iability for accrued benefits Special death benefit fund FNPF fund Retirement income fund 28.
otes to the statements of cash os a econciliation of cash and cash eialents 2022 $000 600,526 2021 $000 496,552 , ,9 ,9 , , ,9 , , , 9,8 5 55 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 ash os resented on a net basis Note 2022 $000 ,98 537,987 2021 $000 9, 596,257 Cash flows arising from the following activities are presented on a net basis in the statements of cash flows i sales and purchases of maturing fixed interest securities and ii Investment and maturity of term deposits.
29.

Commitments and contingent liabilities a ommitments Capital expenditure commitments ndrawn facilities in relation to mortgage loans During the financial year, several loans approved remained undrawn at the year end.
b ontinent liabilities Litigation * 2022 $000 - , 6,063 2022 $000 9, 79,236 2021 $000 - , 1,447 2021 $000 8, 81,100 The Fund is a party to a claim against one of its subsidiary – Farleigh Pte imited.
This relates to claims for loss of entitlement under itaukei lease Sheraton and which amounts to 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 .

 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 etter of support to its hotel subsidiaries for working capital purposes.

106 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 29.
ommitments and continent liabilities contined c eratin lease reene Non- cancellable operating lease rentals are receivable as follows Not later than 1 year ater than year but not later than years Greater than years 30.
Related parties a oard members The Board members of the Fund during the year were r. Daksesh Patel Chairman Mr. Mukhtar Ali Mr. Sanjay Kaba Ms. Kalpana Lal Mr. Joel Abraham Mr. Shiri Goundar b ransactions and balances ith related arties Directors* Directors remuneration - fees and allowances Other services provided to the Fund 2022 $000 ,9 ,89 8, 107,179 2021 $000 8, , , 50,564 2022 $000 11 - 11 2021 $000 - 45 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.

ey manaement ersonnel 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 - r. iliame odonaivalu –Chief xecutive Officer - r. Pravinesh Singh – Chief Operating Officer - r. Tevita omalagi – Chief Finance Officer - s. aisa Saumaki – General anager Governance & Risk Appointed - 8th September - r. Ravinesh rishna – General anager Human Resources - r. Alipate Waqairawai – General anager ember Services - s. illie ow – General anager Business Transformation - r. Rukshan Rajapaksha – Chief Information and Technology Officer - r. day Singh – General anager Governance & Risk Retired - November The aggregate compensation of the key management personnel for the Fund comprises of short-term benefits and is set out below Short-term benefits 2022 $000 , 2021 $000 ,8 A N N U A L R E P O R T 2 0 2 2 107 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 30.
elated arties contined b ransactions and balances ith related arties contined anagement 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 individuals employment contract.
The investments and ownership interests in subsidiary companies are disclosed in Note b.
i ransactions ith related arties drin 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 Amalgamated Telecom Holdings imited Vodafone Fiji Pte Limited Home Finance Company Pte imited Natadola Bay Resort Pte Limited FNPF Hotel Resorts Pte imited Yatule Beach Resort Pte imited Momi Bay Resort Pte Limited Farleigh Pte Limited Barton Pte Limited Dubbo Pte Limited Grand Pacific Hotel Fiji Airways imited 2022 $000 ,8 ,9 , ,9 9 9,9 , , , ,8 , 53,624 Interest from loans were recorded at ,, in .
In Fiji Airways imited was not a related party.
Rental income The amount of rental income from related parties during the year is as follows Amalgamated Telecom Holdings imited Vodafone Fiji Pte Limited Telecom Fiji Pte Limited Home Finance Company Pte imited Dividend income from related parties The amount of dividend income from related parties during the year is as follows Amalgamated Telecom Holdings imited Home Finance Company Pte imited Vodafone Fiji Pte Limited 2022 $000 8 98 8 8 2,401 2022 $000 ,99 ,9 , 41,030 108 A N N U A L R E P O R T 2 0 2 2 2021 $000 - ,8 8, ,9 9 99 8, , , 9 , - 40,162 2021 $000 8 9 2,324 2021 $000 - , , 23,305 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 30.
elated arties contined b ransactions and balances ith related arties contined alances ith related arties at the yearend contined ii alances ith related arties at the year end Dividend receivable from related parties Vodafone Fiji Pte Limited Home Finance Company Pte imited FNPF Hotel Resorts Pte imited Other receivable from related parties Farleigh Pte Limited Group Dubbo Pte Limited Barton Pte Limited Grand Pacific Hotel Pte imited ATH Group oans roided by the nd to related arties Natadola Bay Resort Pte Limited Momi Bay Resort Pte Limited FNPF Hotel Resorts Pte imited – Holiday Inn FNPF Nominees Limited Yatule Beach Resort Pte imited Vodafone Fiji Pte Limited Farleigh Pte Limited Barton Pte Limited Dubbo Pte Limited Grand Pacific Hotel Pte imited Amalgamated Telecom Holdings imited Fiji Airways imited ess Impairment provision 2022 $000 ,8 ,9 9 30,684 2022 $000 , , 8 8 10,629 2022 $000 , ,9 ,99 98 , , 8,8 , ,8 , ,9 , 1,137,656 , 983,539 2021 $000 , 9,
9, , 28,187 2021 $000 , , 9 10,044 2021 $000 98,99 ,9 ,89 98 ,8 , 8, , , ,8 - - 772,138 , 616,566 oan to Fiji Airways imited were recorded at ,, in .
In , Fiji Airways imited was not a related party.

A N N U A L R E P O R T 2 0 2 2 109 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 30.
elated arties contined b ransactions and balances ith related arties contined alances ith other related arties at the year end contined Natadola Bay Resort Pte Limited (NBRL) The loans that were advanced to NBR was for the construction of the Intercontinental Hotel and Golf Course at Natadola.
Interest charged by FNPF in the current financial year is ,9, ,9,.

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 - TTB reference no.
8, part of Sanasana and Navo Island, Tikina alomalo, Province Nadroga - Agreement for ease Contract number , part of ile, alomalo, Nadroga - Crown ease 8 - Cown lease 8 - Cown lease 9 - Crown ease 9, ot , DP - Crown ease 9, ot , DP - Approval Notice D Ref , ot , DP - Approval Notice D Ref , ot 8, DP - Approval Notice D Ref A, ot , DP - Approval Notice D Ref , ot , DP - Comprehensive insurance cover over the property with improvements thereon and FNPFs interest noted thereon - An equitable mortgage over the bank accounts of the ortgagor 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 COID-9 which had resulted in the closure of borders and suspension of international flights, affecting the operations of the Resort, repayment relief in the form of moratorium of principal and interest was provided from April to une .
NBR will commence interest only repayment only from uly and principal and interest repayments will commence from anuary .

Vodafone Fiji Pte Limited (VFL) In arch , odafone Fiji Pte imited entered into a lease agreement with the Fund for its head office.
The term of the lease was for years beginning from the date of occupation and ending in arch , with right of renewal for a further two year terms.

The lease agreement review process for additional term has been completed with the terms and conditions agreed between FNPF and odafone.
In 9 the Fund had advanced a sum of 8,, to F for purposes of capital expenditure and upgrade of its infrastructure.

The loan is secured by a Corporate Guarantee.

In , a loan of ,, was approved, terms and conditions of which were under negotiations.
The legal documentation for the loan was completed in FY and loan fully drawn.

The loan is secured by a Corporate Guarantee and Fixed and Floating ortgage Debenture over the assets of Vodafone.

rand Pacific otel Pte iited In FY, the fund had refinanced a loan of 9,,89 previously held with the Bank of South Pacific.
The refinancing of the loan was part of the strategy of reacquiring the remaining shares in the Grand Pacific Hotel.

The loan is for a term of years.


Due to the impact of COID-9 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 had been provided from April to une .
This has been further extended to December , with repayments due to commence from January 2023.

110 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 30.
elated arties contined b ransactions and balances ith related arties contined alances ith other related arties at the year end contined Barton Pte Limited - First Registered ortgage over N.

 described as ot on ND.

9 being the Sheraton Property.
- First Registered ortgage Debenture over all the assets and undertakings of Barton td This is a fixed and floating charge over all present and future assets, undertakings including goodwill and unpaiduncalled capital of the company Due to the closure of the Resort because of renovation, a moratorium on principal and interest was granted from December 9 to November .
pon expiry of the initial moratorium period and in light of the impact of the COID-9 pandemic, additional moratorium was granted to une .

The Sheraton Resort re-opened for business in arch and will commence repayment of principal and interest from July 2022.
Momi Bay Resort Pte Limited The loan of ,, was approved by FNPF Board on uly for a term of years.

The loan term included a moratorium period of years, and an interest only period of year with principal and interest repayment over a term of years.
onthly interest only repayment on the loan commenced from November , with monthly principal and interest repayments commencing from November 8.

The loan is secured by - First registered ortgage over Development ease – D Ref 8- - First registered ortgage over a portion of Freehold and described as DP.
98 - First registered Debenture over all assets of omi Bay Resort imited - Other conditions of the oan Agreement remains in full force and effect The quitable 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 COID-9 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 was provided from uly to une .
The moratorium has ceased as of une and BR will commence repayment of principal and interest from uly .
Farleigh Pte Limited FNPF entered into a Share Sale Deed with arriott International, Inc. and Fiji Cayman Holdings td in 8 being Starwood Properties transaction, for the acquisition of shares in Farleigh imited, for ,, which was made up of Debt and quity.
The debt novated under Farleigh imited to the Fund amounted to 8,,, with the loan maturing on ay .

The loan was repayable in quarterly installments of ,9,9, inclusive of interest and principal.
The loan is secured by - First registered ortgage over N 8 described as ot , Denarau Island being the Westin property.

- First registered ortgage over State ease No.

 described as ots , and on SO.

 being the Golf Course & Racquet Club.

- First registered ortgage over State ease No.
9 described as ot 9 on SO.

 being the Dump Site and ponds.

- First registered ortgage over State ease No.

9 described as ot on SO.

 being the residential dwelling.
Due to the impact of COID-9 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 to une and further extension has been granted until une .
With the closure of the Westin Resort for renovation, moratorium has been further extended to une .

P otel esorts Pte iited The Fund disbursed a loan of 8,, to FHR in .
The loan is for a period of years with quarterly repayments of principal and interest of 89,9.

Current balance on the loans is to ,99, ,89,.
Due to the impact of COID-9 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 was been provided from ay to une .

oratorium has ceased as of une and FHR will commence repayment of principal and interest from July 2022.
A N N U A L R E P O R T 2 0 2 2 111 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 Fiji National Provident Fund otes to and formin art of the financial statements or the year ended ne 30.
elated arties contined b ransactions and balances ith related arties contined alances ith other related arties at the year end contined Dubbo Pte Limited Funds were disbursed to Dubbo Pte imited towards the renovation of the Westin Resort.
The loan is for a term of years and matures on September .

The loan is secured by - First registered ortgage over N 8 described as ot , Denarau Island being the Westin property.

- First registered ortgage over State ease No.

 described as ots , and on SO.
being the Golf Course & Racquet Club.

- First registered ortgage over State ease No.

9 described as ot 9 on SO.

 being the Dump Site and ponds.

- First registered ortgage over State ease No.

9 described as ot on SO.

 being the residential dwelling.
Due to the impact of COID-9 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 was been provided from April to une .

In light of the closure of the Westin Resort for renovation, moratorium has been further granted until June 2023.
algaated eleco oldings Pte iited During the year, a short term bridging loan of S,, was provided to ATH for utiliation towards the PNG Project.

The loan is secured by an account charge between ATH and FNPF.
ir Pacific imited P oans to AP were advanced for pre-delivery financing of its Boeing aircrafts, acquisition of ATR and Twin Otter aircrafts as well as for working capital.
Due to impact of COID-9 which resulted in closure of borders and suspension of international flights thus affecting company revenue, repayment relief was approved for AP through granting of principal moratorium until December , while they continued to pay interest during this period.

The loan terms were also extended by seven years.
The loans are secured by Government Guarantee, first mortgage over the APs shares in Richmond imited, first mortgage over Governments shareholding in AP, mortgages over the ATR and Twin Otter aircrafts, Term Deposit Charge, General Security Agreement, and Parri Passu mortgages over land and improvements owned by AP and Fiji Airways Limited.

31.
31.

Events Subsequent to the Balance Date Amalgamated Telecom Holding International enture Pte.

imited ATHI Share FNPF exercised its rights to subscribe ATHI shares and paid for a total of ,, new shares amounting to S,, on th une, .
As at th une , acquisition amount of ,9,989 was recorded under other receivables as shares were not issued on reporting date.

The shares was issued to FNPF in August , whereby, FNPF would ultimately hold an equity interest in ATHI of around .
Apart from the matter noted above, there has not arisen in the interval between the end of the financial year and the date of this report, any transaction or events 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.
32.

Auditors The Fund is a compulsory superannuation scheme legislated by the FNPF Act and continuing under the FNPF Act .

Section of the FNPF Act and Section of the FNPF Act requires every employer and employee to make contributions to the Fund.
Team members of PricewaterhouseCoopers PwC, the Funds 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.

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