Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697729724745.pdf (Fiji)
Comments and inquiries should be directed to: The CEO Mr. Neale J Slack Maritime Safety Authority of Fiji P.O.

Box 326, Suva, Fiji Islands 414 Victoria Parade, Level 4, Kadavu House, Suva, Fiji Islands.
T A B L E O F C O N T E N T S Letter to Ministers Chairman’s Report CEO’s Report Critical activities undertaken in 2013 About the Maritime Safety Authority of Fiji Our Vision, Mission, Values and What we seek to achieve Corporate Governance MSAF History Functional areas of responsibility Relevant Legislation The Constitution of the Republic of Fiji Human Resource Management Operations Management Financial Reporting and Accountability MSAF Financial Statements Glossary of Terms Key MSAF Partners 4 5 7 8 10 12 14 47 52 65 68 Captain (Navy) Timoci L Natuva Minister of Works, Transport, Public Utilities and Public Enterprise, Communications 87 Ratu Mara Road Samabula SUVA FIJ Dear Honorable Ministers Mr Aiyaz Sayed Khaiyum Attorney General, Minister for Justice and Civil Aviation and Tourism Level 7 Suvavou House SUVA FIJ It is with pleasure that I present the Maritime Safety Authority of Fiji (MSAF) Annual Report for the year 2013.
With the establishment of MSAF as a Commercial Statutory Authority came signiﬁcant change, and numerous, substantial, challenges for Fiji’s burgeoning maritime industry.

The Authority was tasked with responsibility for maritime safety and security and the protection of the marine environment.
I am pleased to report that during the year under review MSAF’s board, man- agement and staff, along with industry stakeholders, came together in the spirit of cooperation to develop plans for long-term strategies, and short-term actions, for betterment of the maritime industry.
Moving forward MSAF continues to work to its corporate vision ‘to be a dynamic, internationally respected regulator, pro- vider and promoter of maritime safety, security and protection of the marine environment’, and remains steadfastly committed to delivering on its obligations, both locally and in the international arena, and meeting, or exceeding, the expectations of its many and varied stakeholders.
Yours Sincerely Mr. Nigel Skeggs Chairperson CHAIRMAN’S REPORT As Chairman of the Maritime Safety Authority of Fiji it is my great pleasure to introduce MSAF’s Annual Report for 2013.

2013 has seen a continuation of MSAF’s strategy of reforming into a Commercial Statutory Authority with particular focus on the needs of our stakeholders and our local and international obligations.
2013 was a year of signiﬁcant internal change and restructuring for MSAF and under the guidance of our CEO the underlying culture of MSAF has developed into being more customer focused.

This change has required signiﬁcant strategic planning and reallocation of resources with the goal of being a customer centric organisation with decentralised presence and support, processes and authority.

This process is well underway but as an organisation we are still not in a position that the board would like to see.
We must continue to work hard on our commitment to the industry and develop the culture of being a facilitator of compliance.

We must partner with our stakeholders and work closely with them to achieve mutually acceptable goals.

2013 has been a year of strengthening old and the development of new relationships with our international partners and I can’t stress enough our sincere gratitude for their support by way of knowledge and ﬁnancial assistance for participation and training of MSAF senior staff.
It is important that we continue to develop and leverage against this extensive knowledge and experience and use international best practice to ensure the safety of our seas and those that sail on them.
We must also work hard to change the mind set of the general public to ensure the protection of our unique marine environment; an environment that is fundamental to the sustainability of the livelihoods of the people of Fiji and one of the key selling points for our Tourism Industry.
With new emerging mining industries in Fiji we must also ensure that new shipping is safe and the impact of such industries on the marine environment is minimised.

We continue to stress to stakeholders that we are a partner – not just a regulator but also a facilitator of marine safety and guardians of our unique marine environment.

It is this partnership that we will build on moving forward.
I would like to take this opportunity to thank all staff at MSAF for coming into 2013 with an open mind and for embracing the new corporate culture that has been developed over the last two years.

Without the support of all staff this would not have been possible.

In 2014 we will all work smarter and harder with a strong emphasis on individual, departmental and organisational goals with constant assessment and constructive feedback mechanisms.
2014 will be a challenge but I remain conﬁdent that our staff will achieve the high level of performance expected of them and I can comfortably commit that in doing so they will have the full support of the board.

I would like to thank the huge efforts made by the board of MSAF in 2013.

The board are committed to the advancement of MSAF both internally and externally and are a dedicated team who are a pleasure to work with.
Finally, I would also like to thank the ongoing support of Government during our transition, in particular the Honourable Minister for Works, Transport and Public Utilities Mr. Timoci Natuva and the Honourable Minister for Public Enterprises, Mr Aiyaz Sayed-Khaiyum, and their respective departmental staff.

2014 will see another challenging year for MSAF and we look forward to the full support of Government, staff and all stakeholders as we continue along the road of reform and decentralisation.
Achievement of Board Key Performance Indicators The MSAF Board developed 16 Key Performance Indicators (KPIs) for 2013 to enable the Government to measure the performance of the MSAF Board.

The actual achievement of the KPIs is detailed below: MSAF Board KPIs Comments 1.

Gazettal of MTD and SRD Gazetted by Cabinet July 2013, with commencement date of 5th March 2014.

2.
2.

ISO Certiﬁcation of business processes Signed agreement with FNU with drafting of MSAF procedures com- menced.

3.

Decentralization of MSAF Plan commenced but rollout delayed due to availability of ofﬁce space.

Resolved in 2013 with new ofﬁces to be completed Q1 2014.

4.

Transfer of Assets Documentation completed and signed by Minister for Works, Transport and Public Utilities.

Submitted to Ministry of Public Enterprise in prepara- tion for Cabinet endorsement.

5.
5.

Mariner Certiﬁcation Software Installed TARDIS Mariner Certiﬁcation software.

6.

Ships Registration Software Tenders received reviewed, however increased scope for tender required to meet MSAF’s short and long term needs.

Retender in 2014.

7.

Lighthouse Construction Construction of 8 lighthouses completed in 2013.
8. International Training of Staff With ﬁnancial assistance of international organizations staff participated in the following courses in 2013: ILO Maritime Labour Convention Training – Italy ILO Maritime Labour Convention Training – Train the Trainer - Italy Asia Paciﬁc Heads of Maritime Safety Agencies Meeting – Australia IMO General Assembly – UK International Maritime Dangerous Goods Training – Fiji Port State Control Training – Fiji 9.
Build MSAF Vessels Project delayed due to lack of operational budget and development of clear and deﬁned strategic planning for deployment.

10.

STCW 5-year Audit Completed audit of MSAF and FNU in preparation for full audit in 2014.

11.

IMO ‘mock’ Audit Completed ‘mock’ audit in preparation for full audit in 2014.

12.

Develop National Spill Contingency Plan Completed and submitted to Solicitor General’s Ofﬁce for vetting.

13.
13.

Deploy Mobile Awareness Teams Three teams trained, resourced – one team deployed in 2013, and 2 teams in 2014.

14.

Staff Job Evaluation and Salary Review Completed and ratiﬁed by the board.

15.

Assist stakeholders to become compliant Deployed mobile awareness team, regular news items, school education, reduction in cost of compliance, and preparation for source and supply of vessel safety equipment.
Nigel Skeggs Chairman Maritime Safety Authority of Fiji Date: 26 February 2014 This MSAF 2013 Annual Report was adopted by the Maritime Safety Authority of Fiji Board in April 2014.

For further information contact: nslack@msaf.com.fj 7ANNNUAL REPORT 2013MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013CEO’S REPORTContinuous planned change, and reform, of the Authority, and the maritime industry, has been evidenced throughout 2013.
In terms of the Authority, this change has been both of an external and internal nature, and is ongoing.
Critical activities undertaken throughout 2013 that underpin this necessary change and reform include the gazettal of the Maritime Transport Decree (MTD) and Ship Registration Decree (SRD) with a deferred commencement date of 5 March 2014; European Maritime Safety Agency (EMSA) STCW (Standards of Training, Certiﬁcation and Watchkeeping for Seafarers) audit of MSAF/Fiji; ‘mock’ audit by the International Maritime Organisation (IMO) of MSAF/Fiji; independent 5-year STCW (Standards of Training, Certi¬ﬁcation and Watchkeeping for Seafarers) audit of MSAF/Fiji, and preparation for ISO certiﬁcation.A number of requests identiﬁed in our 2012/13 public and stakeholder consultations, have been actioned.
These include the waiving by the Fiji Government of the 32% import duty on imported foam (utilized in the manufacture of life jackets), thereby lowering the cost of local manufactured life jackets; deferral of the commencement date of the MTD and SRD by six months to enable public and stakeholder compliance; and, reduction in the fees (from 1 October 2013 to 5 March 2014), by approximately 70%, for a small craft survey, registration, and Coasting Trading License, to encourage registration and survey of small craft.
MSAF has also decentralized staff, equipment and services throughout 2013, in our drive to deliver remote, mobile, in situ, real-time services.MSAF established rapport through direct engagement with a number of international organisations including the International Maritime Organisation (IMO), International Labour Organisation (ILO), Tokyo MOU, and the International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA) that has resulted in direct beneﬁts to MSAF and Fiji.
MSAF also have engaged with a number of maritime authorities in the Paciﬁc Region in pursuit of technical cooperation.The actions taken throughout 2013 lay the platform for enhanced maritime safety, security and protection of the marine environment for Fiji.
Neale J SlackChief Executive OfﬁcerMaritime Safety Authority of FijiDate: 19 February 2014 CRITICAL ACTIVITIES UNDERTAKEN IN 2013 Listed below is a list of critical activities undertaken by the Authority, by month, in 2013. clare MSAF as a fully ﬂedged reformed Commercial Statutory Authority (CSA) January tiation to Solicitor General’s Ofﬁce for vetting before securing Ministerial approval to implement Convention, 2006 (MLC, 2006) funded training of MSAF Ofﬁcers in Turin, Italy - April
April Assessment and associated Salary Review of all MSAF roles - ductivity Centre (NTPC) for ISO Certiﬁcation of MSAF and commenced preparation for ISO Certﬁcation June July
Ship Registration Decree (SRD) with commencement date of 5 March 2014 Safety Agencies (APHOMSA) meeting in Cairns, Aus- tralia Training, Certiﬁcation and Watchkeeping for Seafarers) audit of MSAF and FNU SMS
Public Enterprises, to prepare Cabinet paper and de- August Maritime and Ports Authority of Singapore (MPA) Ofﬁcers Convention, 2006 (MLC, 2006) Train-the-Trainer funded training of MSAF Ofﬁcer in Turin, Italy September
(IMO) of MSAF and FNU SMS - ﬁcation and Watchkeeping for Seafarers) audit of MSAF and FNU SMS October mission from IMO to Fiji
 survey teams for deployment to more remote rural areas 2013, the draft Marine (Coasting-Trade) (Amendment) Regulations 2013, and the draft Marine (Survey Fees) (Amendment) Regulations 2013 endorsed by Cabinet 1 October ’13 – fee reductions applicable until 5 March ‘14 A N N N U A L R E P O R T 2 0 1 3 November Utilities National Transport and Consultation Forum
 and stakeholder consultation and feedback sought December
 - sation (IMO) General Assembly meeting in London
completed - ing workshop at MSAF January-December - holder consultation; vetting by Solicitor General’s Ofﬁce ANNNUAL REPORT 201310MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013ABOUT THE MARITIME SAFETY AUTHORITY OF FIJIMSAF’S ServicesThe establishment of the Maritime Safety Authority of Fiji (MSAF), as a Commercial Statutory Authority (CSA), as the result of the gazettal of the Maritime Safety Authority of Fiji Decree 2009 (Decree no.
2 of 2010) on 9th November 2011, was an essential part of the reform within the Fiji maritime industry.

MSAF is Fiji’s national safety agency with a primary role in maritime safety, security, and protection of the marine envi-ronment, and is largely government funded.
Supplemental revenue is derived through service fees and levies on the shipping industry.MSAF’S RoleMSAF’s role is to enhance maritime safety, security and pro-tection of the marine environment through:maintenance of national and international maritime safe-ty, security and environment protection standards.
ships in Fiji waters to promote their seaworthiness, safety and pollution prevention.
-farers and coastal pilots.
life saving appliance, and the like.
-rine Aids to Navigation (AtoN) and navigation systems.
Committee prepare and review the National Marine Spill Response Strategy; ﬁxing of oil pollution levies im-posed under the Maritime Transport Decree 2013; use of the National Oil Pollution Pool; and any other matters related to marine oil spills that the Minister for Transport may from time to time specify by notice in writing to the Committee - to avoid, reduce, or remedy pollution, or a signiﬁcant risk of pollution, by a harmful substance that is causing, will cause, or will likely cause serious harm-ful consequences to the marine environment or marine interests.
A N N N U A L R E P O R T 2 0 1 3 o o o Exercising occupational health and safety inspector- ate functions.
Conducting maritime safety and pollution prevention public awareness and education campaigns.

Providing public access to ship safety and environ- ment protection standards and policies.
MSAF’S Stakeholders M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 11 ANNNUAL REPORT 201312MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013ANNNUAL REPORT 2013OUR VISION, MISSION, VALUES AND WHAT WE SEEK TO ACHIEVE Likewise, MSAF has created a set or corporate values.
Our corporate vision and mission will be accomplished by living according to our values that speak to the economic, social, and environmental responsibilities of MSAF and society.VisionTo be a dynamic, internationally respected regulator, provid-er and promoter of maritime safety, security and protection marine environment.MissionGuided by relentless focus on our core imperatives, we will constantly strive to implement the critical initiatives required to achieve our Vision.
In doing this, we will deliver opera-tional excellence in every aspect of the organisation and meet or exceed our commitments to the many stakeholders we serve.

All of our long-term strategies and short-term tacti-cal actions will be moulded by a set of core values that are shared by each and every employee.The Maritime Safety Authority of Fiji (MSAF) deemed it appropriate to create a relevant Vision Statement and Mission Statement that clearly and concisely conveyed the direction to be taken by MSAF.
By crafting a clear vision statement and mission statement, MSAF powerfully communicates our intentions, and motivates our team to realize an inspiring common vision of the future.
A N N N U A L R E P O R T 2 0 1 3 What we value What we seek to achieve We value a safe, caring, respectful, rewarding, diverse and environmentally responsible work environment and we are committed to: - ery to all stakeholders; legislative compliance;
 We seek to achieve our statutory and other obligations as well as address the needs of our stakeholders by focusing on ﬁve key achievement areas: 1.
Maritime regulatory measures.

2.

Monitoring of maritime compliance.

3.

Response to marine pollution risks.

4.

Systems aiding safe marine navigation.

5.

Our people.
M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 13 ANNNUAL REPORT 201314MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013BoardThe Authority’s senior management team, directors and advisors represent industry specialists in wide ranging disciplines that are critical to our success - maritime safety, security and protection of the marine environment; merchant mariners; Navy; ship building; ﬁnance; maritime and business education; maritime law; revenue, customs and ports; and business strategy and operations.Nigel Skegg sChairmanCommander Francis KeanDirectorBiu S. LavakiDirectorKumar AnandManager Human ResourcesPhilip HillEmergency ResponseJohn TunidauJalal Ud DeanDirectorJone BilitakiManager Regional, Enforcement and ComplianceDavid PhilpDirectorNeale James SlackCEOPauliasi VakalolomaNavin KamleshManager FinanceMavis JosephLegal Risks and Audit OfﬁcerManagement TeamCORPORATE GOVERNANCE A N N N U A L R E P O R T 2 0 1 3 Overview The Maritime Safety Authority of Fiji Decree 2009 (Decree No.
2 of 2010) [legal notice 121] was gazetted on 9th November 2011, with a retrospective commencement date of 1st January 2011, heralding in the commencement of the Maritime Safety Authority of Fiji (“MSAF”).

The Maritime Safety Authority of Fiji is committed in uphold- ing the principles of good corporate governance to ensure that the Authority is directed and controlled in a responsible, professional and transparent manner with the purpose of safeguarding its day-to-day operations.
Role of the Board The Board is responsible for charting the Authority’s strategic direction, objective setting, policy guidelines, goals for man- agement, and monitoring the achievement of these matters.

The Board also reviews the Business Plan, Corporate Plan and Statement of Corporate Intent, and Industrial Relations Plan; and, approves Operating and Capital Budgets each year.

The Board also reviews matters of a major or unusual nature, which are not in the ordinary course of business.
Composition of the Board The Board is comprised of the Chairman; Deputy Chairman; and two other members.
As the Authority is a nominated government entity undergo- ing re-organisation / the structural reform process, and in accordance with the Public Enterprise Act 1996, the Min- ister for Public Enterprises, after consulting the relevant line Minister, appoints the board members.
Directors Code of Conduct The establishment of a Corporate Code of Conduct and Ethics is designed to promote honest and ethical conduct, including ethical handling of conﬂicts of interest; full, fair, accurate, timely and understandable disclosure in the Com- pany’s periodic reports, and compliance with applicable governmental rules and regulations.

The Board periodically reviews and assesses the adequacy of the Code of Ethics and implements any modiﬁcations as necessary.
Duties of Directors The Role of the Directors is deﬁned in sections 32 and 57 of the Public Enterprise Act 1996.

A key responsibility of the Directors is to achieve the principal objective of the Govern- ment Commercial Company (GCC) as stated in section 43 of the Public Enterprise Act 1996.
Section 43 states that: a successful business and, to this end, to be as proﬁt- able and efﬁcient as comparable businesses that are not owned by the state.
through the application of the key principles of public enterprise reform and their elements.
M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 15 A N N N U A L R E P O R T 2 0 1 3 The Articles of the Company, and the individual terms of their respective contract letters also bind the Board.
The Board Sub-Committees are as follows: Fiduciary Duties of the Board In addition to the above, the Board of Directors of MSAF col- lectively and individually has agreed on the fulﬁlment of the following the ﬁduciary duties towards the Company: Finance & Audit Sub-Committee The key role of the sub-committee is to oversee the perfor- mance of the Internal Audit function, thus providing assur- ance on the effectiveness of the Authority’s internal control processes and oversee the ﬁnancial reporting as well as discuss risk management practices.
The sub-committee met once during the year.
faith and for a proper purpose; Human Resources Sub-Committee and The Committee’s responsibilities include, but are not limited to: - agreements; sonal gain.
Board Meetings The Board held 7 regular meetings during the ﬁnancial year ended 31 December 2011.

The regular business of the Board during its meetings cov- ered corporate governance, ﬁnancial performance and risk management, business investments and strategic matters.
Board Sub-Committees recommendations arising from audits and reviews of sys- tems and processes; - ment, training, planning and development; and issues.
The sub-committee met 4 times during the year.

Policy Based Corporate Governance The Board SUB-Committees are responsible for deliberating detailed issues and making suitable recommendations to the Board.

The Authority has also adopted a corporate governance policy based approach - to ensure that all employees are committed to the principles of corporate governance stand- ard, consistent with best practice.

The Sub-Committees of the Board meet as and when required.
Director Nigel Skeggs Sunia Lavaki Francis Kean David Philp Jalal Ud Dean Number of Board Meetings Attended 7 7 3 6 7 Status Chairman: 29th June 2013 - 29th June 2015 Deputy Chairman: 12th May 2013 - 12th May 2015 Member: 12th May 2013 - 12th May 2015 Member: 12th May 2013 - 12th May 2015 Member: 29th June 2013 - 29th June 2015 16 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 17ANNNUAL REPORT 2013MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013MSAF HISTORYBackgroundIn April 1998, the Marine Department was declared a Re-organization Entity under the Public Enterprise Act 1996 [PE Act 1996], and on 21st December of the same year Cabi-net approved its Reorganization Charter that saw the forma-tion of a Shipping Corporation Fiji Limited [SCFL].
SCFL was later wound up in 1999 due to change in Government policy for the Marine Department to be internally restruc-tured.With the internal restructuring policy, the Marine Fleet be-came a separate department from the Marine Department.

The Marine Fleet Section was renamed the Government Ship-ping Services, whilst the Marine Department was changed to the Fiji Islands Maritime Safety Administration (FIMSA).
Despite the change in name, minimal had been achieved in terms of structural and organizational reforms necessary to improve the regulatory services provided by FIMSA.The Marine Department reorganization was also carried out simultaneously with the Ports Reorganization in 1998, as their functions were interrelated.
The reorganization of Ports [Ports Terminal Ltd. and Maritime Ports Authority of Fiji] saw the formation of Fiji Ports Corporation Limited in July 2005, and transfer of all regulatory functions to FIMSA making it the sole regulator of Maritime and Sea Transport Industry.FIMSA ReorganizationFIMSA was declared a Reorganization Entity under the PE Act 1996 on 14th March 2006, in line with Cabinet decision [No.

119] and subsequent gazette notice [No.
16/2006] by the Minister of Public Service, Public Enter-prises and Public Sector Reforms.In line with the Cabinet Decision, a detailed review and as-sessment of the status of FIMSA was carried out to identify the gaps and problems, and appropriate strategies to be implemented in the FIMSA Reorganization.The reorganization was intended to help establish a solid foundation for FIMSA to strengthen and enhance its opera-tional efﬁciency thus achieve the principal objective of reor-ganization to provide an efﬁcient regulatory framework that meets the IMO Conventions and agreements to which Fiji is a signatory.The reorganization was also intended to enable the New Entity to adopt a customer focused and business oriented structure and a change of philosophy on work organization, conditions, patterns, attitudes and ethics.
The process also intended to facilitate proper maritime training of local ofﬁc-ers, and seafarers in foreign-going shipping companies.Reorganization CharterCabinet approved the FIMSA Re-organisation Charter at its meeting on 20th November 2007.
The Charter served as a road map for effective implementation and monitoring of the restructure process by the Ministry of Public Service, Public Enterprises and Public Sector Reforms in coordination with the Ministry of Transport.Commencement Notice of MSAFThe Maritime Safety Authority of Fiji Decree 2009 (Decree No.
2 of 2010) [legal notice 121] was promulgated on 11th November 2011, with a commencement date of 1st January 2011, heralding in the commencement of The Mari-time Safety Authority of Fiji (“MSAF”).
ANNNUAL REPORT 201318MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013FUNCTIONAL AREAS OF RESPONSIBILITYCEOStandards &ConformanceShipsInspectionsQualifications & LicensingPort Regulatory& EmergencyResponseLegal Risk &AuditQualityAssurancePublic Relations& CommunicationsFinancialManagementHumanResourcesManagementInformationTechnologyPA to CEOStandards & Conformance – Ensure conformance of MSAF/Fiji to the requirements of all international maritime obliga-tions Fiji is party to, and local maritime legislation reﬂects such obligations; and, MSAF continuously meets these inter-national obligations and local legislation, as they regulate Fiji’s maritime industry.
Establish rapport with international maritime entities and maritime authorities, and secure sup-port for Fiji/MSAF, to meet their core maritime safety respon-sibilities.

Ships Inspection - To ensure strict compliance with Maritime Safety Regulation and Marine Protection Regulations with respect to the ﬂag state inspection, port state control inspec-tion, marine investigation and maritime audits.
Qualiﬁcations and Licensing - Provide timely and efﬁcient registration of seafarers and vessels.Port Regulatory & Emergency Response - Regulate the op-erations of Fiji’s international and domestic ports; ensure the provision of reliable aids to navigation; ensure the protection of the marine environment; and assist in marine emergen-cies.Regional Enforcement & Compliance - Ensure all ships are checked and are compliant with all maritime safety stand-ards and procedures.Legal Risk & Audit – To provide legal support services, im-plement risk management programs, and manage marine investigations processes, to ensure full compliance with statu-tory requirements.Quality Assurance – ensure a desired level of quality in the development, production, and delivery of products and services.Public Relations & Communications - deliberate, planned and sustained effort to establish and maintain mutual under-standing between our organisation and the public, and be-tween our organisation and its staff.Financial Management - Ensures the Authority’s ﬁscal re-sources are utilized in a manner consistent with the intentions of the Authority’s Board and management.Human Resources Management - management that links people-related activities to the strategy, business goals and objectives of the organisation.Information Technology - provision of information systems, which will support decision-making and delivery of services, in terms of efﬁciency and effectiveness.
19ANNNUAL REPORT 2013MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013RELEVANT LEGISLATIONThis following legislation relates to and enables MSAF’s op-erations.Acts/
Decrees(
152)RegulationsVessels
(L/N
74/91)(c
105)1990(cid
2)
Amendments200620062006(c
125)2009(c
47)2010
ANNNUAL REPORT 201320MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013On 06th September 2013, the President of Fiji formally as-sented to a new constitution – the Constitution of the Repub-lic of Fiji 2013, which came into effect immediately.
Some of the major features of the Constitution include:-cess to the law.
-man lands and recognition of their unique culture, cus-toms, traditions and language.
Fijians, other Paciﬁc islanders and other immigrants and settlers.
-ing a range of civil and political rights and, for the ﬁrst time, social and economic rights.
These include the right to education, economic participation, a just minimum wage, transport, housing, food and water, health and social security.
-ment and association.
languages at primary school level, along with English as the common language.
Fijian citizens be entitled to stand for
 Parliamentfor the ﬁrst time, will hold all public ofﬁce holders ac-countable.
servants, members of the disciplined forces and trade union-ists to resign before contesting a seat in Parliament.Of interest is Chapter 12, Section 163 of the Constitution, which deems MSAF as a public ofﬁce by virtue of its es-tablishment as a statutory authority under the MSAF Decree 2009.
Essentially, this obligates MSAF to abide by the code of conduct prescribed in Chapter 6 Part A.

Furthermore, Chapter 2 Bill of Rights Section 6 binds eve-ry person performing the functions of a public ofﬁce.

This means that every Employee of MSAF performing its functions must respect, protect, promote and fulﬁll the rights and free-doms recognized in this Chapter.
For example, Section 25 stipulates that every person has the right to access informa-tion held by the public ofﬁce (MSAF) with the proviso that a law may limit and regulate the procedure under which information held by the public ofﬁce (MSAF) may be made available.Whilst the MSAF Decree 2009 establishes MSAF, MSAF is mindful of its obligations under the Constitution of the Repub-lic of Fiji – the supreme law of the State.THE CONSTITUTION OF THE REPUBLIC OF FIJI 21ANNNUAL REPORT 2013MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013HUMAN RESOURCES MANAGEMENTOrganisational ‘Health’ Index (Employee Climate) The main purpose of the 2013 survey was to highlight trends and emerging issues, and compare to the 2012 benchmark and with the Fiji benchmark for best practice.
The results portray a picture of how MSAF was progressing, and reﬂect the perceptions of the employee respondents.

Perceptions and attitudes about MSAF impact on and inﬂuence behaviour, motiva-tion and performance.
20124.0833.23.43.63.844.220132014201520163.773.853.924.003.883.683.452012 Actual & Forecast to 20162012/13 Actuals & Forecast to 2016The result of MSAF’s 2013 Organisational ‘Health’ Index measurement indicated a rating of 3.45, being an overall decrease of .32 (8%), as opposed to the predicted increase of 0.08 (2%).

Whilst this result differed from the predicted result, the actual result can be logically explained.
Consider-ing MSAF is undergoing massive reform in its transition from a government department (FIMSA) to a commercial statu-tory authority (MSAF) most aspects of the organisation have changed and are continuing to change.
Likewise, MSAF employee demographics have changed and continue to change dramatically – ongoing reduction in the number of FIMSA staff that transferred across to MSAF, increased introduction of new highly qualiﬁed staff with commercial backgrounds and experience, and increased percentages of women and Indo-Fijian staff, to name but a few.

MSAF in effect has been building a ‘new’ employee team.
To explain MSAF’s 2013 Organisational ‘Health’ Index result we refer to the graph below – 5 stages of group development.

1.
FUNCTIONAL AREAS OF RESPONSIBILITY CEO PA to CEO Standards & Conformance Ships Inspections Qualifications & Licensing Port Regulatory & Emergency Response Legal Risk & Audit Quality Assurance Public Relations & Communications Financial Management Human Resources Management Information Technology 4.2 4 3.8 3.6 3.4 3.2 3 3.77 3.85 3.45 3.92 3.68 4.08 4.00 3.88 2012 2013 2014 2015 2016 2012 Actual & Forecast to 2016 2012/13 Actuals & Forecast to 2016 A N N N U A L R E P O R T 2 0 1 3 Five Stages of Team Development Forming * Excitement * Anticipation * Anxiety * Optimism Performing * Teamwork * Cohesiveness * Leadership * Performance Norming * Shared goals * Team cohesion * Coping * Acceptance Storming * Reality sets in * Frustration * Dissatisfaction * Adjustment anxienty Next Steps * Options explored * Skilled * Anticipation * Excitement Adjourning * Separation anxiety * Crisis * Dissatisfaction * Negativity With the establishment of MSAF in November 2011, employ- ees moved into the forming stage of organisation group de- velopment – excitement, anticipation, anxiety, and optimism.
As MSAF moved into 2012 and 2013 employees moved into the storming stage – reality set in, frustration, dissatisfac- tion, and adjustment anxiety.

This explains why the Employee ‘Health’ Index for 2013 decreased by .32 (8%), when com- pared to 2012.
It is the opinion of the MSAF Board and management that during the year 2014 employees will move into the norming stage – shared goals, team cohesion, coping, and accept- ance, resulting in a marked increase in the Employee ‘Health’ Index for 2014 of 0.23 (7%).

The reason for such a predic- tion is that evidence is already available - symptoms of the norming stage are evident across MSAF employees.
Further analysis of MSAF’s 2013 Organisational ‘Health’ In- dex was carried out, and compared against Fiji benchmarks.
- ployee Recognition analysis conﬁrmed the storming stage MSAF has moved through.
Organisational Health Index - Benchmark Vs. Current Benchmark Current (2013) 5 4 3 2 1 0 Strategic Direction Customer Service and Quality Teamwork & Corporation Recognition & Reward Leadership & Supervision - Managers Leadership & Supervision - Employeers Tools & Technology Training & Progression Current Overall Engagement Commitment & Satisfaction Current Overall (excl.
Strategic) 22 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I Board-Approved 2014 MSAF Organisational Structure Board Chief Executive Officer Personal Assistant Manager Standards & Conformance Manager Qualification & Licensing Manager Ships Inspections Manager Customer Compliance Manager Finance Manager Human Resources ) s ( r e c i f f O s d r o c e R / a t a D r o y e v r u S / r e n i m a x E k c e D ) s ( ) s ( r o y e v r u S r o i n e S ) s ( r o y e v r u S ) s ( ) s ( r o y e v r u S t f a r C l l a m S – r e c i f f o l a c i r e l C I l e v e L – ) s ( r e c i f f O t n e m e c r o f n E I I l e v e L – ) s ( / N o T A r e c i f f O n o i t u l l o P .
) s ( r e i h s a C ) s ( r e v i r D ) l a c i n h c e T ( r e c i f f O g n i n i a r T r e g n e s s e M / ) s ( & k s i R l a g e L r e c i f f O t i d u A & Employee Commitment and Satisfaction I would recommend a position at my organization to my friends I am committed to my organization for long term My organization good organization in which to work My work is challenging and rewarding I am proud of the quality of the work I produce I really care about how well my organization performs The morale at my organization is good I am proud to work for my organization 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% N/A Strongly Agree Agree Neither Disagree Strongly Disagree Employee Recognition I feel benefits offered are in line with other similar organisations.
I am fairly rewarded in comparison to people with similar competence in other organisations Where I work, promotions go to people who really deserve it Promotion is dealt with fairly in my organization Good performance is recognized and rewarded in my organisation 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% N/A Strongly Agree Agree Neither Disagree Strongly Disagree M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 23 A N N N U A L R E P O R T 2 0 1 3 5 Benchmark Current (2013) Organisational Health Index - Benchmark Vs. Current The results of MSAF’s 2013 Organisational Health Index (Current vs Benchmark), Employee Commitment and Satis- 4 faction, and Employee Recognition, highlighted various ar- eas that MSAF focused on to positively impact employee behaviour, motivation and performance: - ment of Corporate Intent were in place and communi-
 cated to staff.
3 - propriate plan to address the most critical areas.
2 1 0 Organisational Chart Ongoing review and structural change was required of MSAF’s organisational structure:
Media Liaison Ofﬁcer, and so forth;
Strategic Direction Customer Service and Quality Teamwork & Corporation Recognition & Reward Leadership & Supervision - Managers Leadership & Supervision - Employeers Tools & Technology Training & Progression Current Overall Engagement Commitment & Satisfaction Current Overall (excl.
Strategic) The following organisation chart details the Board-approved 2013 MSAF organisational structure, which exhibits structural recommendations of the 2013 External Job Evaluation Exercise.
Board-Approved 2014 MSAF Organisational Structure Board Chief Executive Officer Personal Assistant Manager Standards & Conformance Manager Qualification & Licensing Manager Ships Inspections Manager Customer Compliance Manager Finance Manager Human Resources ) s ( r o y e v r u S t f r a C l l a m S – r e c i f f o l a c i r e C l I l e v e L – ) s ( r e c i f f O t n e m e c r o n E f I I l e v e L – ) s ( r e c i f f O t n e m e c r o n E f ) s ( r e c i f f O s d r o c e R / a a D t ) s ( r e c i f f O s s e n e r a w A r o y e v r u S / i r e n m a x E k c e D ) s ( ) s ( r o y e v r u S i r o n e S ) s ( .
) s ( r e h s a C ) s ( r e v i r D ) l i a c n h c e T ( r e c i f f O g n n a r T i i r e g n e s s e M / ) s ( & k s i R l a g e L r e c i f f O t i d u A & / N o T A Total MSAF budgeted approved manning for 2013 was 101, Board-approved manning was 85, actual manning was 80, and vacancies were 5.
24 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 25ANNNUAL REPORT 2013MARITIME SAFETY AUTHORITY OF FIJIANNNUAL REPORT 2013Operations ManagementIdentified ObjectivesThe main purpose of the 2013 survey was to highlight trends and emerging issues, and compare to the 2012 benchmark and with the Fiji benchmark for best practice.

The results por-tray a picture of how MSAF was progressing, and reﬂect the perceptions of the employee respondents.
Perceptions and attitudes about MSAF impact on and inﬂuence behaviour, motivation and performance.The major objectives and obligations of MSAF in 2013 were to ensure –-organisation Charter of the Fiji Islands Maritime Safety Administration (FIMSA) leading to the establishment of a commercial statutory authority known as the Maritime Safety Authority of Fiji (MSAF).
Areas (KRA’s)] were linked to the overall strategic priori-ties of the Government, namely the People’s Charter for Change, Peace and Progress, which forms the guiding principles for the Roadmap for Democracy and Sustaina-ble Socio-Economic Development 2010-2014; and, the Ministry for Works, Transport and Public Utilities (MSAF’s line Ministry) objectives.
-forms in terms of Re-Organisation and Corporatisation of Government Entities Public Enterprise Act 1996), by ensuring: o Guiding principles of the reform were adhered to: - Clarity of objectives - Management autonomy and authority - Strict accountability of performance, including non-commercial and community obligations - Operations based on principles of a level playing ﬁeld o Purposes of reorganisation were met - become more efﬁcient and productive; more accountable; better organized; and make a good return on investment.
- MSAF as a regulatory body is responsible for maritime safety, security and protection of the marine environment.
These Included: o Flag state control survey and inspections o Port state control inspections o Marine qualiﬁcations, including the licensing and certiﬁcation of seafarers o Boating safety standards, awareness, education, and trainingo Provision of Aids to Navigation (AToNs)o Certiﬁcation of Maritime Training Institutionso Certiﬁcation of Maritime Service Providerso Regulation of pilotage services o Protection of the marine environment Strategies, Performance Measures and TargetsThe MSAF has direct linkages to the Roadmap for Democ-racy and Sustainable Socio-Economic Development 2010-2014.On 1st of July 2009 the Prime Minister launched Fiji’s Strate-gic Framework for Change.
This documents set out a broad framework for Fiji and the objectives of the Government until 2014.The Government has subsequently developed the Strategic Framework for Change into a “Roadmap for Democracy and Sustainable Socio-Economic Development.” This is the Government’s Strategic 5-year Development Plan, for the pe-riod until the General Elections in 2014.The Roadmap sets out the various strategies that need to be put in place, the agencies that will implement them, and the timelines, in accordance with the Mandate given by the President.
The 11 Pillars of the People’s Charter for Change, Peace and Progress, form the guiding principles for this Roadmap.MSAF’s 2013 overall strategic priorities [Outputs/Key Result Areas (KRA’s)] were linked to the overall strategic priorities of the Government in two key strategic areas – A N N N U A L R E P O R T 2 0 1 3 Outcome No.

6 – Public Sector Reform Outcome No.
24 – Transport environmentally sustainable.
Outcome No.

6 Targeted Outcome Improve performance, ef- ﬁciency and effectiveness of MSAF.

Ministry Key Performance Indicators (KPI) MSAF Key Result Areas (KRA) - Outcomes Right sizing and corporatiza- tion of Fiji Islands Maritime Safety Administration (FIM- SA) to a triple-E (economy, efﬁciency, and effectiveness) focused Commercial Statutory Authority (CSA) - Maritime Safety Authority of Fiji (MSAF).

Ministry of Public Enterprise Output 1 – Reorganization of FIMSA.

Output 2 – Reporting to the Board.


Output 3 – Consulting the Board.

Output 4 – Monitoring, observing and consulting.

Output 5 – Coordination between the Authority and stakeholders.

Output 6 - Drive Operations and Budget of the Authority.

Output 7 - Management and development of the human resources of the Authority.

Output 8 - Drive and manage ﬁnances of the Authority.

Output 9 - Promotion of the entity.

Output 10 - Develop and manage the Information Technology (IT) needs of the Authority.
Output 11 - Achieve all factors that are necessary to realize business success.

Output 12 - Maintenance of Registry of Vessels.

Output 13 - Maintenance of Registry of Qualiﬁed Seafarers.

Output 14 - Compliance with Safety Regu- lations (Ships Inspection) Output 15 - Maintenance of Aids to Navigation Output 16 – Environmental protection.
Output 17 – Maritime Laws, Risk and Internal Audit Output 18 – Regional, Enforcement and Compliance Output 19 - Monitor and Regulate Mari- time Security (ISPS Code) Output 20 – Regulating of Search and Rescue 24 An integrated maritime Transport System that is efﬁcient, safe, and environ- mentally sustainable.

A maritime Transportation System that is efﬁcient, safe, affordable and environmen- tally sustainable.
Ministry of Works, Trans- port, and Public Utilities 26 MSAF’s authority-wide and departmental SMART (Speciﬁc, Measureable, Attainable, Realistic, Time-Based) performance measures, accountabilities and performance are detailed.

Authority-Wide Responsibilities and Performance MSAF Output (KRA) Action/Strate- gies Implementa- tion Timeframe Key Perfor- mance Indica- tors (KPI’s) Output 1 – Reform of MSAF.
In place In place April 2013 – ﬁrst draft November 2013 – feedback from Ministry of Public Enterprise (MPE) 1.

Preparation and imple¬mentation of a Human Resources Policy Manual.

2.

Preparation and imple¬mentation of a Finance Policy Manual.

3.
3.

Preparation of MSAF Stra¬tegic Plan (2013- 2015), Annual Corporate Plan (ACP) 2013, Industrial Rela- tions Plan 2012, and Statement of Corporate Intent.

No evidence of staff not adher- ing to the Human Resources Policy Manual.

No evidence of manage¬ment and staff not adher¬ing to the Finance Policy Manual.
MSAF Board and Ministerial approval of MSAF Stra¬tegic Plan (2013-2015), Annual Corporate Plan (ACP) 2013, Industrial Relations Plan 2013, and Statement of Cor- porate Intent.

Status Remarks 90% Staff trained in policy.

100% Further review underway.

90% Delay in provision due to external consultant and awaiting feed- back from MPE 4.

Preparation of December 2013.

MSAF An¬nual Report 2012.


Auditor General’s endorse¬ment of MSAF Audited Ac- counts.

100% Ofﬁce of the Audi- tor General Audit Report provided in December 2013 Output 2 – Reporting to the Board.

1.

Transparent inter- facing between- Board and CEO.

Ongoing.

2.

Timely compila- Ongoing.

tion of corporate documents to the Minister of Public Enterprises.

3.

Timely compila- tion of techni- calreports and Cabinet papers to the Minister of Works, Transport and Public Utili- ties.

Ongoing.
Ongoing.

Submission of An- nual Report 2012.

80% Annual Report to be supplied early 2014.

No disputes be- tween Board and CEO.

No delays in meeting Ministry documentation requirements.

No delays in meeting Ministry documentation requirements.
100% Achieved 100% Achieved 100% Achieved M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 27 A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/Strate- gies Implementa- tion Timeframe Key Perfor- mance Indica- tors (KPI’s) Status Remarks Ongoing.

4.

Timely compila- tion of technical reports to the Board.

No delays in meet- ing Board documentation requirements.

90% Some timelines not met due to delays in manage- ment provision of reports.

Meet Authority’s strategic aims and objectives.


No breach of relevant legislative requirements and Regulations.

Corporate Govern- ance Policy, Board Charter, Board Sub-Committee Charter, Board Accountabilities and Independ- ence Policy, are documented and implemented.

No legal prosecu- tions on Maritime Conventions.

70% CAPEX plans not met 100% Achieved 100% Achieved 100% Achieved Ongoing.

No international legal confronta- tion on Maritime Regulations.
100% Achieved No Ministry direc- tive is overlooked.

100% Achieved No unresolved disputes.

100% Achieved 1.

Plan, develop and implement- Strategies.

Ongoing.

Output 3 – Consulting the Board – in terms of Corporate Governance, and duties and respon- sibilities of the Board.

Ongoing.

2.

Formulation of Corporate Gov- ernance Policy, Board Charter, Board Sub-Com- mittee Charter, and Board Ac- countabilities and Independence Policy.

1.
1.

Policing the Ongoing Output 4 – Monitoring, observing and consulting.

Output 5 – Coordination between the Authority and Stakeholders.

maritime related Conventions and Policies that the Government is signatory to.

2.

Consulting the Board re (1).

3.

Ensure that the Authority is adhering to Inter- national Maritime Obligations.

1.

Coordinate work- ing relationships with – (i) Ministry of Works, Transport and Public Utilities.
(ii) Assorted Ministe- rial stakeholders, and other State 28 MSAF Output (KRA) Action/Strate- gies Implementa- tion Timeframe Key Perfor- mance Indica- tors (KPI’s) Status Remarks and non-State agencies.

(iii) Local and foreign maritime industry stakehold- ers and partners.

(iv) Fiji Navy and Fiji Police.

(v) FNU School of Maritime Studies.

Output 6- Drive Operations And Budget of the Authority.

1.
1.

Compile and maintain a feasi- ble management structure.

2.

Ensure budg- eted income, expenditure, cash ﬂow and assets achieved or exceeded.

3. Review and maintain effective sectional opera- tional strategy.

No unresolved disputes.

No negative feed- back.

100% Achieved 100% Achieved Ongoing review of management structure.

Training is compli- ant to regulations governing it.

80% MSAF addressed FNU SMS non- compliance issues identiﬁed in audit (s).Compliance issues exist and courses suspend- ed.
Ongoing review of budget Initial budget established December 2011, and then at minimum, ongoing achievement of budget.

Initial sectional operational strat- egy 31 December 2011, with ongo- ing amendment 100% Achieved Management struc- ture in place and supports achieve- ment of all goals and objectives.

80% Financial budget, CAPEX budget, and corporate/ functional area net contributions attained.
Expenditure exceeded due to - holder consulta- CAPEX Budget not achieved and funding with- drawn.

No operational failure.


100% Achieved M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 29 A N N N U A L R E P O R T 2 0 1 3 Departmental Responsibilities Human Resources Management MSAF Output (KRA) Action/ Strategies Implementation Timeframe Output 7 - Man- agement and de- velopment of the Human Resources Plan/Procedure March 2013 April 2012, and then ongoing June 2012.

1.

Ensure Strategic Human Resourc- es Management (SHRM) Plan established and implemented.

2.
2.

Annual review of all HRM Policies and Procedures in accordance with relevant legislation.

Management and development of the Human Capital of the Authority 3.

Ensure learning and development plan established, ratiﬁed by the Board and imple- mented Development Plan established April 2012, ratiﬁed and implemented June 2012.

4.

Ensure OHS Manuals documented and implemented, and Operational.

implemented.

OHS Manual docu- mented, ratiﬁed by the Board and implemented from December 2013.

5.
5.

Ensure annual Job evaluation and salary benchmarking undertaken for all roles.

January 2014 (Managerial posi- tions and all non- managerial roles) March 2013 and then ongoing 6.

Ensure all Disciplinary and Grievance Cases resolved expediently and effectively.

30 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I Key Performance Indicators (KPI’s) Strategic Human Resources Manage- ment (SHRM) Plan established, and implemented.
Current HRM Policies and Proce- dures are reviewed in accordance with relevant legisla- tion, ratiﬁed by the board, and implemented.
Development Plan established ratiﬁed and implemented through an- nual capability and competency assessment OHS Manual docu- mented ratiﬁed and implemented via OHS Committee, Management and Board Job Evaluation and salary Benchmark- ing completed for all roles by November 2013 and capability and competency assess- ment completed and ratiﬁed by Board in December 2014 All Disciplinary and Grievance cases addressed within the time frames speciﬁed in the Policy.
Status Remarks 100% Achieved 70% Work on revised HR Policy ongo- ing.

0% 0% Mass change in HR staff adversely affected com- mencement and completion.

Mass change in HR staff adversely affected com- mencement and completion.

100% Achieved 70% Complex cases re- quired additional time to resolve.

A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/ Strategies Implementation Timeframe 7.

Ensure Perfor- Ongoing mance Appraisal completed within speciﬁed time frames in the Policy 8.
Ensure succession planning system implemented and operational 9.

Ensure HR Month- ly, Fortnightly and Quarterly Re- ports generated and provided expediently.

10.

Ensure suitable recruitment and retention regime implemented and operational December 2013 and then ongoing Ongoing June 2013 and then ongoing Management and development of the Human Resources/ Capital of the Authority Key Performance Indicators (KPI’s) All annual apprais- als to be completed within speciﬁed time frame.
Succession plans in place for all staff by December 2013.

All reports provided within three work- ing days or speci- ﬁed time frame.

All recruitments and placements con- cluded effectively with most capable person recruited to the role Status Remarks 100% Achieved 50% Expected comple- tion early 2014 60% Delays in on- going provision of reports.
80% Recruitment on an ongoing basis Finance Management MSAF Output (KRA) Action/Strate- gies Implementa- tion Timeframe Output 8 – Drive and manage ﬁnances of the Authority.

1.

Ensure manage- Ongoing.

ment of ﬁnancial expenditure and revenue of the Authority.

Key Performance Indicators (KPI’s) Operational budgets established and oper- ated, and Budget versus Actual variance <5%.

Cash ﬂow sustained to operate Authority No overspending against budgets.
Net contributions of Authority (and each functional area) achieved.

Average payables age- ing : 30-60 days Average receivables ageing: <60 days Status Remarks 95% Variance of actual against budgeted amount was 5%.
Sufﬁcient cash ﬂow sustained to oper- ate Authority Overspending against budget was 5% Payables remained between 30-60 days 25% receivables exceeded 90+ days M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 31 A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/Strate- gies Implementa- tion Timeframe Key Performance Indicators (KPI’s) Status Remarks 2.

Ensure Account- ing Software implemented Completed 3.

Ensure accounts are auditable.

Ongoing Ongoing 4.


Ensure manage- ment of capital expenditure and CAPEX grant of the Authority.

5.

Motor Vehicle Fleet Manage- ment Ongoing 6.

Fixed Assets Ongoing All month end reports were sub- mitted on time.

100% All reports submit- ted on time 2013 ﬁnancials yet to be audited.

However draft ac- counts have been submitted to OAG.

Projects worth $1.4m were not completed in 2013.


Vehicles were maintained in good order and condition, however, quarterly reports were not compiled.

Asset register has been maintained, however, work is still going on to tag and label all assets.

95% 70% 95% 95% Month end close of accounts and genera- tion of ﬁnancial reports within 15 working days.

100% Ministerial and Board reporting sched- ules met.

Auditor General’s endorsement of MSAF Annual Reports without deviations and non- conformances.
Timely call and evalu- ation of tenders for all capital projects.

Ensure all applied capital funds are draw- down within timeline submitted in the budget and utilized before end of year.

Ensure all vehicles are in working conditions at all times.

Ensure proper and accurate records are maintained in relation to all vehicles.

Ensure quarterly reports are submitted on the health and utilization of vehicles.

Ensure all assets of the Authority are properly recorded in the assets register.
Ensure all assets are properly tagged and Board of survey done bi-annually.

Ensure reports are submitted on the health of the assets with recommendations for upgrade, replacement or disposal.

32 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I MSAF Output (KRA) Action/Strate- gies 7.

Ensure payroll and related schedules are maintained Implementa- tion Timeframe Ongoing 8.

Ensure surplus funds are invested.

Ongoing 9.


Ensure Environ- Ongoing mental Levy Trust account is prop- erly maintained A N N N U A L R E P O R T 2 0 1 3 Status Remarks 100% New format of reports designed to achieve all the required KPI’s 100% 98% Funds invested with ANZ on short term money market.

Debt has been brought under control during the year.

However, about 2% of debtors still needs closer attention to be classiﬁed under 30 days.
Key Performance Indicators (KPI’s) Fortnightly payroll is processed without errors.

All supporting documentation is ﬁled.

Annual leave provisions are maintained and all leave utilization and balances are correctly recorded.

Monthly submission to FRCA is done by due dates for EMS and PAYE tax is paid by due date.

FNPF payment is done by due date.

Analysis is done for each pay period and all deviations are justi- ﬁed with comments.
Surplus funds of the Au- thority are invested and gaining best available interest rates.

All Environmental Levy invoices are done in a timely manner All debts are collected in a timely manner and all actions taken against non paying customers to recover debts Separate bank ac- counts is maintained and reconciliation carried out in a timely manner.
Media Liaison MSAF Output (KRA) Action/ Strategies Implementa- tion Timeframe Key Perfor- mance Indi- cators (KPI’s) Status Remarks Coordinate all information and communication about MSAF as part of its informa- tion, advocacy and marketing strategy Articles for print, broadcast and online updates produced Planning blue- prints for all publi- cations endorsed Ongoing Timely production and distribution of MSAF news 60% Articles prepared an ongoing basis Ongoing All scheduled Pub- lications printed M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 33 A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/ Strategies Implementation Timeframe MSAF Publications appropriately designed and layout MSAF Publica- tions distributed on time Discussing hot topics on intranets such as promo- tional materials e.g.
use of RSS feed, attending World Maritime Day etc Dissemination of MSAF updates to stakeholders and media.
Manage and develop approved MSAF information services MSAF stake- holder/ media networks main- tained Ongoing Ongoing Ongoing Ongoing Key Perfor- mance Indi- cators (KPI’s) Record of MSAF publications Articles on MSAF published on web as it comes up Vernacular publi- cations updated and disseminated Circulate articles about MSAF to wider audiences through networks MSAF Articles published in mass media.
Stakeholder/ media database updated Electronic network established with stakeholders/ media such as a MSAF Facebook page Media Correspond- ences logged into MSAF system Create an RSS feed for MSAFs upcoming new phase II website Coordination of Publications and dissemination of: - Awareness/ training materi- als, pamphlets, brochures, posters on MSAF - Email stakehold- ers/ media on MSAF updates Ongoing Timely response Ongoing Ongoing Ongoing Ongoing Ongoing Updated data- base for MSAF reporting and planning purposes Email list updated and contacts established Timely production and distribution of awareness/ train- ing materials Updated bro- chures and post- ers about MSAF Efﬁciently route rel- evant information to key stakehold- ers 34 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I Status Remarks 60% Media Liaison Of- ﬁcer terminated.
60% Limited materials - tion disseminated.
A N N N U A L R E P O R T 2 0 1 3 Status Remarks MSAF Output (KRA) Action/ Strategies Implementation Timeframe Noticeboards are actively used Ongoing Weekly enews for staff provided Ongoing Key Perfor- mance Indi- cators (KPI’s) Creative Posters for MSAF aware- ness Be the focal point for MSAF informa- tion and provide appropriate infor- mation services Media releases for activities at regional and national level run by MSAF Ongoing Number of media releases 60% Limited materials - tion disseminated.
Documenting of key events for training and mar- keting purposes organized Regular Website information main- tenance Ongoing Ongoing Dissemination of electronic updates to networks Ongoing Communicate and market MSAFs programmes Communications and Sponsorship plan drafted Media Policy and Communications Policy drafted Branding of all MSAF materials eg.
Standard busi- ness cards etc Communication etiquette around ofﬁcers and ﬁeld work introduced and implemented Social network Facebook space available on the MSAF site created for the new web- site and linked.

Marketing / Communication activities identiﬁed from the Plan.
Coordinate MSAFs informa- tion, advocacy and marketing strategy Ongoing Ongoing Ongoing Ongoing Ongoing Ongoing Media articles/ reports MSAF DVD shots archived MSAF website information re- main current and updated Electronic updates disseminated at a means of provid- ing awareness for the existence of MSAF website Branding guide- line (manual) developed and effectively used and marketed Growth in MSAFs stakeholder/ media network MSAFs visibility increased Number of requests (demand) for MSAF services grow 80% Communications plan drafted, branding devel- oped and Policy’s drafted 100% Achieved M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 35 A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/ Strategies Implementation Timeframe Ongoing Ongoing Promote MSAF articles on Face- book in order to keep track with Stakeholders/ media.
Awareness on decrees and regu- lations effectively disseminated.

Information Technology MSAF Output (KRA) Action/Strat- egies Implementation Timeframe Output – Develop and manage the Information Technology (IT) needs of the Authority 1.

Establish IT Ongoing function in the Authority.

2.

Develop and Ongoing enhance the Au- thority’s website.

Ongoing .

3.

Provide suf- ﬁcient support services to assure reliability of information technology equipment and- software.

5.

Staff informa- Ongoing .


tion technology competency requirements are identiﬁed and included in staff core competency assessments.

Key Perfor- mance Indi- cators (KPI’s) Articles published in the local dailies and MSAF web- site as and when required Formal means of MSAF communi- cation advocacy and plan identi- ﬁed and using of the proper brand for any communi- cation process.
Key Perfor- mance Indi- cators (KPI’s) IT stafﬁng recruit- ed and started on 01/10/2012 Functional Authority website operational, and capable of all required online transactions.

>95% uptime for Authority’s informa- tion technology equipment and software.

Average response time of <2 hours per outage.

All staff is as- sessed regarding IT competencies, and IT training plans developed and implemented.
Status Remarks Status Remarks 80% 80% 80% 55% Recruited IT Ad- ministrator Online Payment gateway to be completed by Jun 2013 ITA addressed majority of issues experienced Training to be ongoing after the IT infrastructure is established 6.

Design IT Policies and Implementation with all MSAF employees All staff is as- sessed regarding IT competencies, and IT training plans developed and implemented.
All staff to sign the policy when issued company asset for proper handling of MSAF assets 90% To be completed by 2013 36 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I Quality Assurance A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Ensure Qual- ity Assurance Compliance for Business Excellences 1.
Ensure ISO 9001:2008 Certiﬁcation of the Authority and ongoing compli- ance Action/ Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks May’ 14 and ongo- ing I.Application for ISO certi- ﬁcation to the Certiﬁcation Body by May 2014 30% Procedures for HR and IT pending.

Q1’ 2014 and ongoing.

Q’4 2014 2.

Ensure Author- ity’s National and International compliance 2 Internal Audits to be carried in 2014, one by MSAF Internal Auditors and one by FNU.
SOP’s have been identiﬁed by HODs that require amendments as per MTD and SRD.

Procedures been implemented for respective depart- ments and training on such.

Internal Audit planed for March 2014.

Findings have been addressed as procedures have been drafted.

Procedures written and implemented and Audit carried out on Fiji Na- tional University School of Mari- time Studies.
II.Certiﬁcation Audit by May 2014 30% 30% 30% 30% 70% III.Ensure MSAF’s QA sys- tem is updated to reﬂect the changes in the MTD/ SRD, Regulation, etc through quarterly audits.

i.

Ensure MSAF Con- tinuous Improvement and Compliance to all IMO conventions and ISO requirements; Q’1 2014 Standard Target 50% Q2’ 2014; Standard Target 65% Q3’ 2014; Standard Target 80% Q4’ 2014; Standard Target 95% ii.
Sep’ 13 IMO Mock audit ﬁndings addressed (8 Ofﬁcial and 57 unof- ﬁcial ﬁndings for MSAF Sep’ 13 STCW audit ﬁndings addressed; for MSAF (6 Ofﬁcial and 26 unofﬁcial ﬁndings) FNU (SCHOOL OF MARITIME STUDIES) (7 Ofﬁcial and 15 unofﬁcial ﬁndings) Q’4 2014 then ongoing 3.

Ensure MSAF are compliant to and recognized for Business Excel- lence.

External 3rd party audit at MSAF yearly and MSAF to be recognized for their business excellence.
20% In house training awareness on Business Excel- lence undertaken for all HODs 37 A N N N U A L R E P O R T 2 0 1 3 Qualiﬁcation and Licensing MSAF Output (KRA) Output 11- Maintenance of Registry Ves- sels.

Action/Strate- gies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks 1.
Ensure that local and international requirements of shipping services are carried out in accordance with the international conventions and the marine laws of Fiji.

(i) State’s obligation under the UNC- LOS and Marine Act.

Ongoing State’s compliance with all obligations under the UNCLOS and the Marine Act.

Safety of all vessels operating within Fiji waters leading to a safer mode of transpor- tation and associated activities.

100% of all vessels compliant with the regulation.


99% Approx 25 meet- ings conducted with ship owners on areas of safety.

10 with Training providers on new training require- ments ii) Registration of vessels, especially small boats, and pleasure boats.

Commence Maritime Awareness Jan 2013 Ongoing Commence enforcement Jan 2013 in MSAF operational areas - 99% June 2013 and then ongoing.

Database upgraded, and fully operational.


66% (iii) Upgrade of Data- base program for Ships Registration and related activi- ties.

(iv) Upgrade of January 2014.

Regional ofﬁces online.

50% Output 12- Maintenance of Registry of Qualiﬁed Seafarers.

Ongoing.

Regional Ofﬁce capability.

1.

Ensure that seafar- ers are appro- priately trained and licensed in compliance with the provision of the IMO – STCW requirements.

2.

Automated Ma- rine Certiﬁcation.


Sept 2013 and then Ongoing State’s compliance with all obligations under the STCW Convention and Marine Act.

All Mari- time Training Providers comply with the training standards.

100% of marine cer- tiﬁcates issued utilizing automated marine certiﬁ- cation system.

38 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 235 new vessels Registered in 2013.
23 Maritime Awareness Train- ing Programme Conducted in rural areas Currently identify- ing type of infor- mation required for the database and data entry Improving commu- nications infra- structure between all ofﬁces.

Monitoring All Seafarers on local vessels.

100% 70% Layout, colour and format of Booklet completed A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/Strate- gies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks 3.
Conduct audit of Maritime Training Providers.

4.

Establish and maintain database for Seafarers.

5.

Establish online (via Website) Seafarers and Shipping Registra- tion.

Dec 2013 and then ongoing Issue of SIN/Compli- ance.

100% December 2013 and then ongoing Seafarers Database in operation.

60% January 2013 and then ongoing Seafarers and Shipping.

Registration carried out online.

100% Complete audit of all training Providers Completed all technical require- ments.
All Shipping and applications for seafarers avail- able on line.

6.

Obtain ratiﬁcation of MLC 2006 June 2013 Cabinet has approved the ratiﬁcation of the MLC 2006 7.

Ensure State’s compliance with the 2010 STCW Manila.

July 2013 and then ongoing State is compliant with the 2010 STCW Manila Convention.
70% 70% MLC 2006 includ- ed into the new Maritime Decree/ Regulation Regulation amended to meet requirements Standards and Compliance MSAF Output (KRA) Output 13- Compliance with Safety Regulations (Ships Inspec- tion).

Action/ Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks 1.

Ensure compli- ance to statutory requirements.

December 2012, and then ongoing.

2.

Ensure compli- June 2013 ance to Marine Safety Regula- tions 3.
Ensure ethical June 2013 standard of zero tolerance is ap- plied.

4.

Ensure custom- ers are well informed and well serviced.

Dec 2013 100% compliance – all registered vessels are safe and seaworthy.

Consisten- cy , stringent and effective survey programs.

40% areas require coverage to ensure compliance.

Zero customer complaints re-ethics breaches.


100% Achieved Zero customer service complaints 100% Achieved Survey response time reduction from current 24 hours, to 16 hours by Dec. 2012, and 10 hours by Dec.2013 and ongoing.

70% Further concentrat- ed effort required.

Decentralisation of Surveyors will as- sist in reduction of response time.
M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 39 A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks 5.

Ensure marked improvement in survey response time attained.

by Dec. 2012, and 10 hours by Dec. 2013 Survey response time reduction to 16 hours 70% 6.

Ensure timely recti- ﬁcation of defects and completion of surveys.
completion of surveys shall be not more than 21 days by Dec. 2012, 14 days by 2013 and ongoing completion of surveys shall be not more than 21 days by Dec. 2012, and 14 days by Dec. 2013 7.

Ensure Establishment of plan approval.

December 2013 8.

Ensure No ambigui- ties in interpretation of safety legislation.

9.

Ensure accessibility of services for rural areas.


June 2014 December 2014 Plan approval regime and processes, and procedures in place in the QMS No ambiguities in interpretation of safety legislation.

100% accessibility and mobility of services for rural areas.

50% 50% 70% 65% Further concentrat- ed effort required.

Decentralisation of Surveyors will as- sist in reduction of response time.

Further concentrat- ed effort required.


Decentralisation of Surveyors will as- sist in reduction of response time.

In the process of recruiting a Naval Architect.


Ongoing training of staff on MTD, SRD Decentralisation of Surveyors is underway Port Regulatory & Emergency Response MSAF Output (KRA) Output 14- Maintenance of Aids to Navigation Action/Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks 1.
Ensure service pro- Ongoing vider (GSS) complies with IALA A All Fiji Waters shipping lanes are adequately marked with naviga- tional aids.

99.3% Light houses 70% Beaconing 2.

Ensure dissemination of (MSI) Information.

Ongoing 3.

Ensure maintenance AtoN on all routes.

March 2012 and then ongoing.

4.


Effective response to potential and/or ac- tual oil and chemical pollution incidents.

Dec. 2012 and then ongoing There is a demonstrated reduction in the number of serious pollution response incidents as a proportion of foreign ﬂagship arrivals.

40 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 100% 100% 100% GSS started work in late September.

Raiyawa started its ﬁrst voyage after 5 years in November.
FCNW sent as and when required All planned lights for construction completed before COB Dec 2013.

% attendance to all reports received.

FPCL proceeded with legal proceedings, resulting in outside court settlement A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks 5.

Establishment of a National Emergency Response Plan to combat pollution of Fiji waters, which reﬂects updated risk proﬁles.
Dec. 2012 and then ongoing.

90% A National Emergency Response Plan is in place, and resources are available to respond.

6.

Ensure sufﬁcient Dec. 2013 numbers of pilots available to provide pilotage services.

No incident whereby a pilot is unavailable.

100% 7.

Acceding to Search and Rescue Interna- tional Conventions.

8.

Acceding to Ballast Water International Conventions.

July 2013 July 2013.


Recognition of Search legislation Recognition of Ballast Water in local legisla- tion.

70% 70% SG Ofﬁce to complete vetting MTD to be brought into force in March 5th 2014.

Achieved Sufﬁcient with current number of pilots but new trainees required by Pilot Providers to replace retiring Pilots.
Cabinet Ap- proved Regulation Drafted Cabinet ap- proved Regulation Drafted.

Legal, Risk & Audit MSAF Output (KRA) Output 1 - Legal Risks Action/Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks Timely provision of quality legal advice, legal risks etc, provided to Management on a daily basis.

Where legal issues are more complex, then a 2nd opinion is sought from the Solicitor General’s Ofﬁce.

(a) Provide legal opin- ions and advise to Management.
within 5 days from receiving request Timely provision of quality legal advice pro- vided to Management on a daily basis.

90% (b) Review and provide legal advice on tender documents.

within 14 days from receiving request Legal advice provided to Tender Committee on tender documents.

(c) Review on-going cases and advise management ac- cordingly.

(d) Liaise with relevant departments to ensure that where le- gal risks have been identiﬁed, appropri- ate course of action have been taken.
(e) Provide legal protec- tion and risk manage- ment advice to man- agement especially on contract management.

within 5 days from receiving request Timely provision of qual- ity advice on on-going cases.

within 14 days from being alerted of risk Timely attendance and addressing of identiﬁed legal risks provided on an on-going basis.

within 5days from receiving request Timely provision of legal protection and risk management advice provided on an on- going basis.
M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 41 A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks (f) Provide and interpret legal information, conduct training and disseminate appro- priate legal require- ments to staff.

(g) Provide legal advisory and inter- pretation services to Management to ensure statutory com- pliance with existing law and regulatory requirements.
(h) Prepare legal opin- ions and advising the management on general issues that may arise from time to time.

(i) Review and vet agreements, security and other legal instru- ments.

(a) Review and advise Management on legal implications of internal policies and procedures.

(b) Review and draft Contracts, Agree- ments and internal policies and ensure that they are in compliance with all statutory or legal requirements.
(a) Provide legal advice to the Management on various aspects on the existing law and regulatory requirements.

(b) Assist with prepara- tion and amendment of relevant Govern- ment legislation.
Output 2 - Policy Devel- opment Output 3 - Legislation Development within 24hrs from receiving interpreta- tion legal information request; Within 1 month of receiving request for training] within 24hrs from receiving request within 5 days from receiving request within 14 days from receiving request within 14 days from receiving request Timely provision of legal information and conduct of training for staff.
Timely provision of quality advice and interpretation services to Management to ensure statutory compliance with existing law and regulatory requirements on an on-going basis.

Timely provision of quality legal opinions and advice provided to Management on an on-going basis.

Timely completion of review and vetting of agreements and other legal instruments on an on-going basis.

Timely review of internal policies and provision of quality advice on an on–going basis.
within 14days from receiving request Timely review and drafting Contracts, Agreements and internal policies on an on-going basis.

100% Timely review and drafting of all doc- uments requested for MSAF.

within 24hrs from receiving request within 14 days from receiving request 90% Timely and qual- ity advice provided to Management and Staff on various aspects of the existing laws and regulatory requirements on a daily basis.
Timely and efﬁcient as- sistance provided in the preparation and amend- ment of legislation on a need basis.

Timely and quality advice provided to Management and Staff.
The preparation and amendment to relevant Govern- ment legislation takes more time given the volume of Regulations needed for review within a limited timeframe 42 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I MSAF Output (KRA) Litigation Management Regulatory Compliance Contract Negotiation A N N N U A L R E P O R T 2 0 1 3 Action/Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks (a) Provide advice on any litigation affect- ing the Authority.
within 5 days from receiving request (b) Follow up on and fortnightly updates update management on court matters for and on behalf of the Authority.

(c) Recommend cases for write-off where recov- ery through litigation has proved futile.

quarterly basis (a) Formulate compli- quarterly basis 100% Timely advice and updates provided.

Cases notiﬁed to Legal are being pursued.

Timely advice provided to Management on litigation affecting the Authority.
Timely updates provid- ed to Management on court matters for and on behalf of the Authority.

The Authority is pursuing all cases notiﬁed to and also highlighted by Legal.

Checklists to be pre- pared – to be aligned into the QMS.

85% Timely provision of reports.

Checklist and monitoring are being aligned to QMS.

ance check-list to be used for the purpose of enduring that all information required is provided accordingly.
(b) Continuously monitor compliance with statutory obligations and advise Manage- ment accordingly.

(c) Prepare monthly and quarterly reports for the Department for Executive Manage- ment Meeting.

(a) Review all contracts or any other docu- mentation where the Authority has committed itself and assess legal implica- tions that need to be brought to the Executive Manage- ment’s attention.

(b) Prepare, review and modify contractual instruments to assist and support various business activities.
(c) Negotiate, review and draft documen- tation for business transactions and pre- pare and advise on the necessary check- lists to be adopted to ensure information is submitted on time.

quarterly basis one monthly basis Adhoc monitoring process in place pending approved monitoring and compliance check list aligned into the QMS Timely submission of fortnightly, monthly and quarterly reports pro- vided as required.
within 14 days from receiving request Timely review of all contracts/documents provided on an on- going basis.

85% within 1 month from receiving request within 1 month from receiving reques Preparation, review and modiﬁcation of quality contractual instruments on an on-going basis.

Negotiation, review and preparation of documentation provided as and when required.

Checklists to be pre- pared to be aligned into the QMS.

Timely review/ drafting of all contracts.

Ne- gotiation on an on-going basis.


Checklist are being prepared to align with the QMS 43 A N N N U A L R E P O R T 2 0 1 3 Regional Enforcement & Compliance MSAF Output (KRA) Output 19 Regional Enforcement and Compli- ance Action/Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks 1.

Ensure safe and highest possible standard of services to all jetty users.

Ongoing Zero customer com- plaints.


60% MSAF has noted a marked reduc- tion in complaints.

Ongoing Ongoing 2.

Ensure all surveys on outer stations are carried out in a more efﬁcient and timely manner.

3.

Ensure that all ves- Ongoing sels on the outer sta- tions and prescribe ports are surveyed and hold valid cer- tiﬁcate of survey.

4.

Ensure that all Ongoing ves-sels in the outer stations are safely manned.

5.

Ensure that all crews hold valid certiﬁ- cates.

Ongoing Ongoing 6.
Ongoing Ongoing 6.

Ensure that inspec- tors are present during all vessel departures and ar- rivals.

100% compliance to OHS during loading and discharging.

100% Achieved Zero injuries.

100% Achieved Zero customer com- plaints on surveys not carried out on time as requested by the customer (ship owners or agent).

100% of vessels in the outer stations and pre- scribe ports hold valid certiﬁcate of surveyed.
100% of vessels in the outer stations and pre- scribe ports comply with safe manning require- ments.

100% of crews on ves- sels in the outer stations and prescribe ports hold valid certiﬁcates.

Zero customer com- plaints re: enforcement ofﬁcers delaying ships departure and arrival, due to the length of time taken by passenger boarding (max of 1 hour).

100% of passenger lists and cargo manifest are collected, validated and electronically recorded as per requirements.
Measureable increase in the number of safety checks and reports of non-compliance, in the allocated areas patrolled.

60% 65% Reduction in customer com- plaints regarding the surveying of vessels in the outer stations Enforcement and Compliance ofﬁcers ensure all vessels checked hold valid survey certiﬁcate.

65% Strict veriﬁcation during outward clearance.

65% 80% Strict veriﬁcation during outward clearance.

MSAF has noted a marked reduc- tion in complaints.


80% 80% All passenger lists and cargo mani- fests collected but not electronically recorded.

Enforcement and Compliance ofﬁc- ers strict proce- dures adhered to and ongoing improvement.

44 MSAF Output (KRA) Action/Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks 7.
Ensure all ships com- ply with regulations on marine pollution, in all outer stations.

8.

Ensure proper dis- posal of garbage, oil and sewage, in all outer stations and prescribed ports.

Ongoing Ongoing 9.

Respond to any oil spills on or nearest to outer stations.

Ongoing Ongoing Ongoing Ongoing 10.

Ensure safety checks, undertak- en, and manning lists are compliant, before all vessel departures.

11.

Ensure passenger Numbers are checked before departure and arrival at prescribe ports.

12.
12.

Ensure all vessels- Checked for load- ing, cargoes and securing systems at jetties.

Ensure logbooks are ﬁlled out electronically recorded.

80% Zero incidents of marine pollution.

60% Zero Incidence of ma- rine pollution in all outer stations.

60% Logbooks are ﬁlled out however not electronically recorded.
MSAF has noted a marked reduc- tion in marine pollution and inci- dences reported.

With ongoing decentralisation of staff expect increased compli- ance.

Zero incidences of garbage, oil spill and sewage pollution in the outer stations and prescribed ports.

2 hours maximum response to mari-time emergency, oil spills and rescue in allocated boundaries of monitoring.

100% of vessels are checked(before each vessel departure) and are fully compliant with Regulations regarding safe manning.
100% passenger lists to be collected, validated and electronically re- corded on all vessels before departure and after arrival.

100% cargo informa- tion (manifest) collected, validated, before depar- ture and arrivals, and electronically recorded 60% Introduction of the Maritime Transport Decree in 2013 is expected to as- sist in control.

60% Ongoing 80% Ensured all vessels checked com- plied.

80% 80% MSAF has noted a marked reduc- tion in issues with passenger Lists.
No reports on overloading of cargo at pre- scribed ports and jetties but unable to monitor on outer islands.

Stafﬁng chal- lenges precluded the opportunity to attend/ assist all incidents.

13.

Ensure all vessel load Line marks are checked.

Ongoing Check and validated 100% of vessels load mark before departure and arrivals.

100% Achieved.
100% Achieved 45 A N N N U A L R E P O R T 2 0 1 3 MSAF Output (KRA) Action/Strategies Implementation Timeframe Key Performance Indicators (KPI’s) Status Remarks Ongoing Ongoing 14.

Ensure initial infor- mation provided on any accident in the outer stations and prescribed ports to investiga- tion ofﬁcers.

15.

Ensure assistance provided and participation in the awareness program with the Awareness Team.
Attend to 100% of mari- time incidents in outer stations, and assist the investigation ofﬁcers in 100% of investigations carried out in outer stations.

Provide assistance and participate in all of awareness programs when requested by the Awareness Team.

80% Provided support as requested.

100% Attended provin- cial and district meetings and coordinated BML Awareness train- ing.
46 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 47ANNNUAL REPORT 2013MARITIME SAFETY AUTHORITY OF FIJIFINANCIAL REPORTING AND ACCOUNTABILITYMSAF Accounting Policies The accounting policies adopted were in accordance with requirements of the Companies Act and with the Fiji Account-ing Standards.
Outline of the Borrowings Made, and Proposed to be Made MSAF sources of funds were from a combination of gov-ernment grants (operational and CAPEX) and self-generated revenue (derived from delivery of services to the Fiji maritime industry).
During the ﬁnancial year 2013 and into the foreseeable future, MSAF Board and management have no intentions of borrowing funds.Acquisition and Disposal of Assets Criterion for acquisition of ﬁxed assets was as follows: purchase of assets;and ﬁnal approval by CEO, for all purchases less than $20,000;called, evaluated and recommendations made to the MSAF Board for ﬁnal approval.Criteria for disposal of ﬁxed assets was as follows:
 end at its useful life;Board approval for disposal.
Disposal may be by way of: o public auction; o trade-in; o tender process; o direct dealing; or o write off.
Board’s Commercial Value of State’s Investment The Equity contribution by the State as at 31 December 2012 recorded at book value in MSAF’s balance sheet was $8,837,740.
No independent valuation was done for the year.

Distribution of Proﬁts & Reserves The MSAF Board of Directors before distribution must ap-prove any distribution of accumulated proﬁts and capital reserves to the state.

Dividend Payments The MSAF Board of Directors before payment to the state must approve any dividend that was declared.
No dividend was declared nor dividend payments made in 2013.Financial Report – Operational In July 2007, Cabinet approved the Reorganisation Char-ter of the Fiji Islands Maritime Safety Administration (FIMSA) leading to the establishment of a commercial statutory au-thority known as the Maritime Safety Authority of Fiji (MSAF).

The establishment of FIMSA was planned to commence in July 2008, with a 5-year reorganisation period.
The FIMSA Reorganisation Charter recommended appropri-ate strategies for the reform of the maritime regulatory au-thority in Fiji including a ﬁve-year Development Budget Pro-gramme commencing in 2008.

A ﬁnancial model based on yearly expenditures for the next 5 years matched the yearly expenditures with expected revenue, grants and subsidy.
The ‘grant money’ had been captured as part of the MSAF budget; as this was deemed an important part of the budget to inﬂuence the principles of a sound ‘commercial statutory authority’ to effectively perform its role as sole regulatory body for Fiji’s Maritime Industry.

The following ﬁnance options had been identiﬁed by the FIMSA Reorganisation Charter Committee as appropriate options for MSAF: Either: 1.
Government declares that MSAF does not have to pro- A N N N U A L R E P O R T 2 0 1 3 vide the services [i.e.

non-compliance to IMO] to the stat- ed levels but to lower [present and deteriorating] levels of service; or added responsibilities, as such had been neglected for the past 20 years, taking into account the budget restrictions of the Government.

Operating Grant 2,858,432 3,300,000 441,568 $ $ % 15% 2.

An increase in fees and charges is put through; or 3.
Government funds MSAF with a ‘one line grant’ in Na- tional Budget for a ﬁve-year transitional period for 2008- 2012.

The FIMSA Reorganisation Charter recommended option 3 as the preferred ﬁnance option for MSAF.

Cabinet endorsed option 3, as there needed to be a transitional period of at least ﬁve years during which MSAF would be expected to pursue a path of change management, streamline its opera- tions and achieve efﬁciency gains.
During this 5-year pe- riod, MSAF was also expected to review and adopt a new tariff policy and practices, taking into account the MSAF revenue needed to provide Government and the Maritime Industry or public at large with the expected improve- ment in the level of service [LOS].

Grants $ 2012 1,500,000 4,358,432 Capital Grant Other revenue sources for MSAF were also identiﬁed in the FIMSA Reorganisa- tion Charter.
There were other revenue sources to be collected once MSAF absorbed other functions and activities that were undertaken by Fiji Ports Corporation Limited (Aids to Navigation) and Radio Call Charges from ships using the Coast Radio Station (collected by Telecom Fiji), Light Dues for use of Aids to Navigation; and introduce new fees and charges and review/increase existing fees and charges.
Total (VIP) The FIMSA Reorganisation Charter recommended Capital Expenditure and Operational grants to be staggered (re- duced) at the initial ﬁve year period, funded through Gov- ernment grants - to be reduced over the years subject to fees and charges review, and introduction of new fees e.g.

“Embarkation Fee” for international and domestic passen- gers utilizing sea transport services, provided that proper facilities and services are provided at every port.
The short- fall in revenue was expected to be funded from increases in fees and charges, and other sources of income, to be deter- mined by the new MSAF Board.
The FIMSA Reorganisation Charter also recognized the need for MSAF to meet the backlog of maintenance and upgrading of aids to naviga- tion, compliance to IMO standards, and new functions or 48 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I Taking the FIMSA Reorganisation Charter recommendations and acknowledgements into consideration, it is signiﬁcant to note that the Maritime Safety Authority of Fiji Decree 2009 (Decree No.
2 of 2010) [legal notice 121] was only ga- zetted on 9th November 2011, with a retrospective com- mencement date of 1st January 2011, heralding in the com- mencement of the Maritime Safety Authority of Fiji (“MSAF”), nearly 4 years later than had been planned.

2013 was the second full year of operation of MSAF.
MSAF in 2013 received a ‘one-line grant’ (Capital and Op- erational Expenditure), from government: 2013 Difference Difference 1,786,746 286,746 19% 4,786,746 428,314 10% Total government grants received by MSAF in 2013 in- creased by 10% when compared to 2012, as a result off: was the second full year of operation for MSAF, the rate of activities increased, thus demanding increased ex- penditure.
The major increase in expenditure was public and stakeholder consultation and awareness relating to the review of the Marine Act 1986, and of the forthcom- ing Maritime Transport Decree (MTD) and Ship Registra- tion Decree (SRD).
- ceived in 2013 by 19%, compared to 2012.
This in- crease in capital grants was predominantly as a result of an increased number of lighthouses constructed, survey gear and motor vehicle acquisitions.

MSAF’s operating grants received, generated revenue and operating funds utilized for 2013 was: A N N N U A L R E P O R T 2 0 1 3 Grants 2012 2013 Difference Difference $ $ $ 2,669,154 3,300,000 630,846 % 24% Operating Grant (exc.
VAT) MSAF Revenue 1,295,921 1,294,671 -1,250 -0.09% Operating Funds Utilised 3,965,075 4,594,671 629,596 15.9% * VAT inclusive amount as VAT not paid on all government grant from 2013, as these are now treated as capital contri- bution rather than income to the entity.

MSAF’s total revenue in 2013 was adversely affected as a result of the circular, which was distributed by the Ministry of Public Enterprises and Tourism on 14th March 2013 - as per Cabinet decision No.
357 of 2012, any recent government grant or special funding to State Owned Enterprises shall be treated as capital contribution rather than revenue.

This requirement applied to any grant and/or special funding from the year 2010 and onwards.

MSAF has assessed its accounting policy with regards to the recognition of gov- ernment grants, based on the aforementioned circular and Cabinet decision.
In spite of the impact in 2013 of government grants to MSAF being treated as capital contributions rather than revenue, MSAF 2013 generated revenue from services provision was similar to the revenue generated in 2012.
MSAF Generated Revenue 2012 $ 2013 Difference Difference $ $ 319,280 273,717 -45,563 334,458 Light Dues/Port Registration and Emergency 545,674 364,544 618,048 38,362 96,509 1,295,921 1,294,671 30,806 72,374 -58,147 -1,250 Other Income Total % -15% 9% 13% -60% -0.09% MSAF’s operating proﬁt/loss before tax for 2013 was (F$2,389,610): Operating Proﬁt/Loss before tax 2012 $ 2013 $ Difference $ Operating Proﬁt/Loss before tax (1,916,069) (2,389,610) (473,541 49 A N N N U A L R E P O R T 2 0 1 3 MSAF operating loss before tax in 2013 was as a result of: capital contributions rather than revenue; - rine Act 1986.
Subsequent to this Cabinet endorse- ment, a Marine Act Review Committee was appointed (Chaired by MSAF), and was tasked with undertaking wide-ranging, nationwide public and stakeholder con- sultation.

Consultation commenced in July 2011 and extended throughout 2012 and 2013.

Additional ex- penses incurred in 2013, in providing the consultation and review of the Marine Act 1986 was fully funded by MSAF.
Associated expenses increased and included accommodation, travelling, subsistence, advertising, conferences and workshops, consultancy, printing and stationery, fuel and oil, etc; to deliver such services to more remote, rural and mari- time locations; It is important to note that MSAF provides a wide range of “non-commercial services” to the State, due to the fact that the existing maritime legislation speciﬁes the services and charge out rates of MSAF, however, MSAF provides many services that are not chargeable.
These non-commercial services include vessel marine clear¬ance, accident and incident investigations, and au- dits of maritime education providers, to name but a few.

It is esti¬mated that the non-commercial services provided by MSAF are in the order of F$1.5M per annum.
Critically important to MSAF self-funding operations and capital requirements, will be the need to review all existing fees and charges, and introduce a wide range of new fees and charges (current non-commer¬cial services) and penal- ties.

Such reviewed and new fees, charges and penalties have not been included in these ﬁnan¬cial projections, as such review is yet to be undertaken, and approvals for such sought.
beneﬁt of Fiji, there will be occasions when it is beneﬁcial for Government Commercial Companies to undertake non- commercial activities.

(2) The non-commercial obligations that a Government Com- mercial Company is to perform are, as far as possible, to be speciﬁed in its statement of corporate intent.
(3) The costing of, funding for, or other arrangements to make adjustments relating to a Government Commer¬cial Company’s non-commercial obligations are also to be speci- ﬁed in its statement of corporate intent.

Meaning of “non-commercial obligations” 70.


The “non-commercial obligations” of a Government Com¬mercial Company are obligations to perform activi- ties that its Board establishes to the satisfaction of the Public Enter¬prise Minister and Minister of Finance are not in the com¬mercial interests of the Government Commercial Com- pany.

Payment by the State 71.
If the State requires a Government Commercial Com¬pany to perform a non-commercial obligation, and there is no agreement between them as to the calculation and payment of the cost thereof, then the State shall pay that the amount the Public Enterprise Minister, after consulting the Minister of Finance calculates is the full cost, direct and indirect, to the Government Commercial Company, after making such adjustments as are reasonable, in¬cluding an adjustment for any ancillary or contingent beneﬁts that ac- crue or are likely to accrue to the Govern¬ment Commercial Company as a result of it providing the goods and services.
Financial Report - Capital Government capital grant funding allocated to MSAF in 2013 was $3m, however, the actual amount received by MSAF in 2013 was $1.787m, as the Ministry for Finance withdrew unused funds amounting to $1.213m.

The $1.787m capital grant was utilized for rehabilitation and construction of Aids to Navigation (AtoN), purchase of 2 new motor vehicles and purchase of survey equipment.
Year 2013 $ Sections 69–71 of the Public Enterprise Act 1996 explains clearly the non-commercial obligations of commercial statu¬tory authorities: Non-commercial obligations - general 69.
(1) Government Commercial Companies are to oper- ate along commercial lines, but it is recognized that for the Aids to Navigation (AtoN) 1,570,746 Motor vehicles Survey equipment Total 121,000 95,000 1,786,746 50 More speciﬁcally, the $1.570m Aton capital grant fund- ing received was utilized for construction of the following lighthouses: Description Project Cost East Side Tripod Lighthouse 250,557 South Culvert Tower Lighthouse 201,326 East Culvert Tower Lighthouse 197,090 West Side Tripod Lighthouse 250,557 Maori Shoal Tripod Lighthouse 252,763 West Tripod Lighthouse - Vorovoro 252,763 Muanivanua Point - Koro Marine Lanterns 136,690 29,000 Total 1,570,746 All of the Lighthouse projects included installation of solar panel batteries and lanterns.
All lighthouse projects were completed by 31 December 2013, except Welagilala Lighthouse which is expected to be completed in 2014.
More speciﬁcally, the $0.216m motor vehicle and survey equipment capital grant funding received was utilized for: Description Project Cost 2 Toyota Hilux Twin Cab vehicles 121,000 Assorted Survey Equipment 95,000 Total 216,000 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 51 ANNNUAL REPORT 201352MARITIME SAFETY AUTHORITY OF FIJIMSAF Financial StatementsPage 53 Director’s Report 54 Statement by Directors ?

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Independent Audit Report 55 Statement of Comprehensive Income 56 Statement of Financial Position ?

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Statement of Changes in Accumulated Fund 57 Statement of Cash Flows 11 - 17 Notes to the Financial Statements A N N N U A L R E P O R T 2 0 1 3 MARITIME SAFETY AUTHORITY OF FIJI DIRECTOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2013 In accordance with a resolution of the Board of Directors, the directors herewith submit the balance sheet as at 31 December 2013, and the related income statement, changes in accumulated fund and cash ﬂows for the year ended on that date and report as follows: 1 The following were directors of the board at any time during the ﬁnancial year and up to the date of this report.
- Nigel Skeggs - Sunia Lavaki - Francis Kean - David Philp - Jalal Ud Dean 2 Principal activity The principal activity of the authority is to provide services in administering and enforcing the laws speci ﬁed in the Marine Act and any other law relating to the regulation, registration and safety of shipping; and to advise the state on matters relating to maritime safety and maritime security and to liaise with appropriate Ministries and statutory bodies on such matters.
3 Trading results The proﬁt/(loss) for the year was ($2,389,610) (2012: $1,916,069.)

4 Provisions There were no material movements in provisions during the year apart from the normal amounts set aside for such items as depreciation and doubtful debts.

5 Reserves The directors recommended that no amounts be transferred to reserves for the year ended 31 December 2013.
6 Non current assets The directors took reasonable steps before the board’s ﬁnancial statements were prepared to ascertain that the non-current assets of the board were shown in the accounting records at a value equal to or below the value that would be expected to be realized in the ordinary course of business.

At the date of this report, the directors are not aware of any circumstances, which would render the values attributable to the non current assets in the ﬁnancial statements misleading.
7 Bad and doubtful debts The directors took reasonable steps before the ﬁnancial statements were prepared, to ascertain that all bad debts were written off and adequate provision was made for doubtful debts.

At the date of this report, the directors 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.
M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 53 A N N N U A L R E P O R T 2 0 1 3 8 Other circumstances At the date of this report, the directors are not aware of any circumstances not otherwise dealt within this report or ﬁnancial statements, which render any amounts stated in the ﬁnancial statements misleading.
9 Unusual circumstances The results of the board’s operations during the ﬁnancial year have not in the opinion of the directors been substantially affected by any item, transaction or event of a material and unusual nature other than those disclosed in the ﬁnancial statements.

10 Basis of accounting The directors believe the basis of the preparation of ﬁnancial statements is appropriate and the board will be able to continue in operation for at least 12 months from the date of this statement.
Accordingly the di rectors believe the classiﬁcation and carrying amounts of assets and liabilities as stated in these ﬁnancial statements to be appropriate.

11 Events subsequent to balance date (a) (b) (c) No charge on the assets of the board has arisen since the end of the ﬁnancial year to the date of this report to secure the liabilities of any other person.

No contingent liability has arisen since the end of the ﬁnancial year to the date of this report.
No contingent or other liability has become enforceable or is likely to become enforceable within a period of twelve months after the end of the ﬁnancial year which, in the opinion of the directors, will or may affect the ability of the board to meet its obligations when they fall due.
12 Directors’ beneﬁts No director of the Board 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 directors and any claim and/or any payment made by any director for attendance and professional services rendered and approved by the directors of the Board as shown in the Board’s accounts) by reason of a contract made with the Board or a related corporation with the director or with a ﬁrm of which he is a member, or in a Board in which he has a substantial ﬁnan cial interest.
For and on behalf of the Board.
Chairman Date Director Date 54 MARITIME SAFETY AUTHORITY OF FIJI STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2013 Notes 2013 $ 2012 $ Revenue Qualiﬁcation and Licensing Standard and Compliance Light Dues & Mooring Fees Other Income Less: Travel and Allowances Administration Expenses Professional Fees and Charges Dues and Subscriptions Printing, Courier and Stationery Motor vehicle expenses Utilities General Supplies Payroll and related expenses Proﬁt / (Loss) from operations (2,389,610) 1,916,069 Income tax expense 1.6 - Proﬁt / (Loss) after income tax (2,389,610) 1,916,069 The income statement is to be read in conjunction with the notes to and forming part of the ﬁnancial statement set out on pages XX - ZZ.
M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 55 A N N N U A L R E P O R T 2 0 1 3 MARITIME SAFETY AUTHORITY OF FIJI STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013 Notes 2013 $ 2012 $ CURRENT ASSETS Cash at Bank Investments Trade and Other Receivables Prepayments and Deposits 2 3 4 5 NON CURRENT ASSETS 3,420,508 1,009,956 516,858 53,262 2,622,203 1,000,000 239,037 648,463 5,000,584 4,509,703 Property, Plant & Equipment 6 5,886,327 3,953,135 5,886,327 3,953,135 TOTAL ASSETS 10,886,911 8,462,838 CURRENT LIABILITIES Trade and Other Payables Accruals Provision for Employee Entitlement 7 7 7 129,388 20,700 135,740 285,828 293,487 7,965 94,996 396,448 TOTAL LIABILITIES 285,828 396,448 NET ASSETS 10,601,083 8,066,390 ACCUMULATED FUNDS Capital Contribution Retained Earnings Signed on behalf of the Board of Directors.
Chairman Director 13,762,043 (3,160,960) 8,837,740 (771,350) 10,601,083 8,066,390 The balance sheet is to be read in conjunction with the notes to the ﬁnancial statements set out on pages XX to ZZ.
56 MARITIME SAFETY AUTHORITY OF FIJI STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 DECEMBER 2013 Cash ﬂows from operating activities Receipts from customers Payments to suppliers, creditors and employees Interest received Interest and ﬁnance costs paid Net cash used by operating activities Cash ﬂows from investing activities Notes 2013 $ 2012 $ 1,017,994 (3,428,514) 4,077 (3,901) (2,410,344) (1,793,921) 851,088 (2,653,476) 11,381 (2,914) Payments for plant and equipment Deposits Paid Net cash used by investing activities (828,618) (2,311,457) 605,757 (1,705,700) (828,618) Cash ﬂows from ﬁnancing activities Proceed from Government Investment Net Cash provided by ﬁnancing activities Net (increase)/decrease in cash Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December 2 4,924,304 4,924,304 3,947,167 3,947,167 3,622,203 1,324,628 808,260 2,297,575 4,430,463 3,622,203 The statement of cash ﬂows is to be read in conjunction with the notes to the ﬁnancial statements as set out on pages XX to ZZ.
M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 57 A N N N U A L R E P O R T 2 0 1 3 MARITIME SAFETY AUTHORITY OF FIJI NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013 1 SUMMARY STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted by Maritime Safety Authority of Fiji are stated to assist in the gen eral understanding of these ﬁnancial statements.

These policies have been consistently applied except as otherwise indicated.
1.1 Basis of Accounting The ﬁnancial statements have been prepared in accordance with the requirements of the Companies Act and with the Fiji Accounting Standards.

The ﬁnancial statements have been prepared primarily on the basis of historical cost and except where stated, do not take into account current valuations of non-current assets.

1.2 Property, Plant and Equipment Items of property, plant and equipment are measured at cost less accumulated depreciation.
Depreciation is calculated on a straight line basis over the estimated useful of the asset as follows: Leasehold improvements Fixtures and equipment Motor vehicles Plant & Equipment Communication equipment Business Software Aids to Navigation 55, 75 years 10, 20, 40, 60 and 80 years 1 – 5, 10 and 20 years 5 years 5 years 2.5 years 40+ years Proﬁts and losses on disposal of property, plant and equipment are taken into account in determining the results for the year.
1.3 Government Grant Government grants received during the year has not been treated as revenue.

This is in accordance with the circular issued by Ministry of Public Enterprise of the Cabinet Decision No.357 of 2012.

As such all grants extended to MSAF from 2011 and ongoing is/will be treated as Capital Contribution and will be reﬂected in the Equity account.

1.4 Receivables Trade receivables are carried at original invoice amount less provision made for impairment of these receivables.
A provision for impairment of receivables is established when there is objective evidence that the Board will not be able to collect all amounts due according to the original terms of receivables.

A provision is raised for any doubtful debts based on a review of all outstanding amounts at year-end.

Bad debts are written off during the period in which they are identiﬁed.
58 1.5 Trade and Other Creditors These amounts represent liabilities for goods and services provided to the Authority prior to the end of the ﬁnancial year and which are unpaid.

1.6 Income Tax The Authority is exempted from income tax under Section 55 of the Maritime Safety Authority of Fiji Decree 2009 for the ﬁrst three years commencing 1 January 2011.
1.7 Employee Beneﬁts Liabilities for wages and salaries are recognized and are measured as the amount unpaid at the reporting date at current pay rates in respect of employee services up to that date.

1.8 Cash and Cash Equivalents Cash and cash equivalents are carried in the balance sheet at cost.

For the purposes of the cash ﬂows statement, cash and cash equivalents comprise cash on hand and at bank and short-term deposits held with banks.
1.9 Revenue recognition Revenue from sale of goods and services are recognised when goods and services are delivered and titled passed.

Revenue is measured at the fair value of the consideration received or receivable, net of discounts and sale related taxes on behalf of the government of Fiji.
2 CASH AND CASH EQUIVALENT Operating account Capital account Cash on hand 3 INVESTMENT ANZ Term Deposit 4 RECEIVABLES Trade debtors Other Receivables VAT Refund Receivable Refund from E Levy Account Refund from MWTPU 2013 2012 403,748 3,014,860 1,900 3,420,508 2,622,203 334,330 2,287,265 608 1,009,956 1,009,956 1,000,000 1,000,000 99,849 8,444 230,749 17,926 159,890 516,858 113,231 125,806 - - - 239,037 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 59 A N N N U A L R E P O R T 2 0 1 3 5 DEPOSITS AND PREPAYMENTS FEA Deposits Rental Deposits Prepaid Rent Deposit - Fiji Directories Deposit - Ministry of Works Insurance Prepaid Other Prepayments 2013 $ 2012 $ 1,600 25,794 - 16,972 - 3,503 5,393 53,262 1,600 25,794 6,448 6,946 605,757 1,488 430 648,463 6 a) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are included in the accounts on the following basis: 31 December 2013 Accumulated Depreciation $ Accumulated Depreciation $ Written Down Value $ Leasehold Improvements 245,274 81,341 131,187 Motor Vehicles 749,981 105,618 249,999 Pollution Control & Other Equipment Ofﬁce Machines & Equipment 1,685,418 33,019 90,396 113,991 351,746 Ofﬁce Furniture 63,708 51,793 Communication Equipment 644,883 5,725 8,045 Aids to Navigation Business Software Survey Equipment 265,616 4,750,549 103,966 208,618 3,767 43,994 3,325,556 776,751 5,886,327 60 TRADE PAYABLES AND ACCRUALS Trade Creditors VAT Payables Accruals & Provisions Environmental Levy Employee entitlement 2013 $ 129,388 - 20,700 - 135,740 285,828 2012 $ 139,958 49,265 7,965 104,264 94,996 396,448 8 NOTES TO THE STATEMENT OF CASH FLOWS For the purpose of the cash ﬂow statement, cash includes cash on hand and at bank.
Cash at the end of the reporting period as shown in the cash ﬂow statement comprises: Cash on hand and at bank 4,430,464 3,622,203 2013 $ 2012 $ 9 RELATED PARTY TRANSACTIONS (a) Directors The names of persons who were directors of the Board at any time during the ﬁnancial year are as follows: - Nigel Skeggs - Sunia Lavaki - Francis Kean - David Philp - Jalal Ud Dean (b) Transactions with Related Parties Transactions with related parties during the year ended 31 December 2013 with approximate transaction values are summarised below: Directors Fees 2013 2012 $13,047 $14,379 All transactions with related parties are conducted on commercial terms and conditions.
(c) Amounts Due to and Receivable from Related Parties Appropriate disclosure of these amounts is contained in the respective notes to the ﬁnancial statements.
M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 61 A N N N U A L R E P O R T 2 0 1 3 11 SUBSEQUENT EVENTS There has not arisen in the interval between the end of the ﬁnancial period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect signiﬁcantly the operations of the board, the results of those operations or the state of affairs of the board in the subsequent ﬁnancial period.
12 REGISTERED OFFICE The registered ofﬁce for the Maritime Safety Authority of Fiji is: Level 4 Kadavu House 414 Victoria Parade Suva The Authority is a statutory body under the Ministry of Works, Transport and Public Utilities and Ministry of Public Enterprises.

At balance date, the Board had a total of 79 employees.
62 MARITIME SAFETY AUTHORITY OF FIJI DETAILED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2013 REVENUE Qualiﬁcation and Licensing Standard and Compliance Light Dues & Mooring Fees Other Income 2013 ($) 2012 ($) 273,717 364,544 618,048 38,362 319,280 334,458 545,674 96,509 TOTAL REVENUE 1,294,671 1,295,921 EXPENSES Accommodation Advertising Annual Leave Audit Fee Awareness Expenses Bad Debts Bank Fees and Charges Board Allowances and Expenses Computer Expenses Conferences and Workshops Consultancy Fees Depreciation Donations & Contributions Dues and Subscription Electricity Employment Expenses Entertainment Fiji National Provident Fund FNU Training Levy General Expenses Hiring Charges Insurance Legal Fees Long Service Leave Meals & Subsistence Allowance Motor Vehicle Running Ofﬁce Supplies Per diem - International Per diem - Local Postage and Freight Printing and Stationery Redundancy Payments Relocation Expenses Rent - Business Premises 27,483 45,000 118,204 10,696 103,817 - 3,901 23,465 30,131 73,093 74,576 413,066 2,160 27,173 43,297 6,738 12,418 128,595 17,002 13,570 42,048 17,517 15,151 - 98,246 92,846 5,058 43,301 - 3,494 92,332 - 11,160 171,710 37,013 45,877 108,024 3,043 - 10,679 2,914 14,251 15,296 34,361 87,687 294,601 5,056 50,775 38,959 10,269 9,144 122,573 15,095 9,944 22,706 7,860 - 11,535 42,385 46,124 15,446 62,025 22,704 4,979 44,244 148,004 12,741 183,635 M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 63 A N N N U A L R E P O R T 2 0 1 3 Repairs & Maintenance Telephone & Internet Town Rates Travelling - Local Travelling - Overseas Uniform Vodafone Wages and Salaries World Maritime Day Expenses TOTAL EXPENSES 5,587 49,386 3,041 112,369 13,292 8,532 41,831 1,656,691 26,304 3,684,281 3,211,990 18,131 25,207 - 90,452 39,608 33,032 18,920 1,428,044 18,647 Operating proﬁt/(loss) before tax (2,389,610) (1,916,069) 64 GLOSSARY OF TERMS Acronyms The words and terms listed here, all of which have been used in this Corporate Plan and Statement of Corporate Intent, have the meanings shown.
AIS AMSA APMA AToN BAF CAPEX CEO CSA EIA EBIT EDITDA EFT FIMSA FIU FNU FSCL GPS GSS H&S HCM HSS&E IALA IHO ILO IMO ISPS ITCP JEE KPI KRA LSA MARPOL 73/78 Misc.
MNZ MOU MSAF MTD NATPLAN NGO NPAT OHI PACER PacMA PacWIMA PIB PICTA PIMLA PSCC QMS Q&L RBF RE&C S&C SCFL Automatic Identiﬁcation System Australian Maritime Safety Authority Asia-Paciﬁc Heads of Maritime Administration Aids to Navigation Biosecurity Authority of Fiji Capital Expenditure Chief Executive Ofﬁcer Commercial Statutory Authority Environmental Impact Assessment Earnings before Interest and Taxes Earnings before Interest, Taxes, Depreciation, and Amortization Effective Full-Time Fiji Islands Maritime Safety Administration Financial Intelligence Unit Fiji National University Fiji Shipping Corporation Limited Global Positioning System Government Shipping Services Health and Safety Human Capital Management Health, Safety, Security & the Environment International Association of Lighthouse Authorities International Hydrographic Organisation International Labour Organization International Maritime Organisation The International Ship and Port Facility Security (ISPS) Code Integrated Technical Co-operation Programme Job Evaluation Exercise Key Performance Indicators Key Result Areas Life Saving Appliances Marpol 73/78 is the International Convention for the Prevention of Pollution From Ships, 1973 as modiﬁed by the Protocol of 1978.
Miscellaneous Maritime New Zealand Memorandum of Understanding Maritime Safety Authority of Fiji Maritime Transport Decree National Spill Contingency Plan Non-government Organization Net Proﬁt after Tax Organisational Health Index Paciﬁc Agreement on Closer Economic Relations Paciﬁc Islands Maritime Association (PacMa) Paciﬁc Women in Maritime Association Price Income Board Paciﬁc Island Countries Trade Agreement Paciﬁc International Maritime Law Association Tokyo MOU Port State Control Committee Quality Management System Qualiﬁcation and Licensing department of MSAF Reserve Bank of Fiji Regional Enforcement and Compliance department of MSAF Standards and Compliance department of MSAF Shipping Corporation Fiji Limited M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 65 A N N N U A L R E P O R T 2 0 1 3 SLA SOLAS SRD SSI STCW SWOT SWPHC TAF TBD TEC TMOU TNA TPU UNCLOS USP VAT VIMSAS W&S Service level Agreement Safety of Life at Sea Ship Registration Decree Stakeholder Satisfaction Index Standards of Training, Certiﬁcation and Watchkeeping for Seafarers Strengths, Weaknesses, Opportunities and Threats Southwest Paciﬁc Hydrographic Commission Telecommunications Authority of Fiji To be Determined Total Employee Contribution Tokyo Memorandum of Understanding Training Needs Assessment Transport Planning Unit UN Convention on the Law of the Sea The University of the South Paciﬁc Value Added Tax Voluntary IMO Member State Audit Scheme Wages and Salaries 66 Deﬁnitions Accountability Annual Budget Authority Board Being obliged to answer for one’s actions, to justify what one does.
Not to be confused with responsibility.

Responsibility involves the obligation to act.

Accountability is the obligation to answer for the action.

The total amount that MSAF is planning to spend on the purchase of goods and services during the year and the purposes for which it is to be spent.

The Maritime Safety Authority of Fiji The Maritime Safety Authority of Fiji Governing Board.

Capital Projects Includes both Refurbishment Capital Projects and New Capital Projects.
Corporate Plan Denunciation Depreciation Mission Statement New Capital A plan required to be published by MSAF annually pursuant to the MSAF Decree 2009.

The Corporate Plan shall include the information listed in Section 48 of this Decree.

When a State expresses that it is no longer willing to be bound by a treaty.

The wearing out, consumption or other loss of value of an asset, whether arising from use, the passage of time, or obsolescence through techno logical and market changes.
A corporate mission statement deﬁnes what the corporation does, who it serves, and how it serves (creates value for) its clients.

Expenditure that is used to create new assets, or to increase the capacity of existing assets beyond their original design capacity or service poten tial.

Outcomes The actual impact and value of the service delivery.
Performance Measure Performance Target Statement of Corporate Intent A qualitative or quantitative measure relating to the intended level of service for a particular service area.

Performance measures are the means by which MSAF is able to identify the extent to which it has been able to achieve its objectives – the means for determining whether the levels of service are actually being achieved.
There are three broad elements of performance measures: (i) Those that measure service efforts (inputs); (ii) Those that measure service accomplishments (outputs and outcomes); and (iii) Those that relate service efforts to service accomplishments (efﬁciency and cost outcomes).

The desired level of performance against a performance measure.

A spe ciﬁc quantiﬁable result (in relation to a performance measure) that MSAF is aiming to achieve.
A statement required to be prepared annually by MSAF and agreed with the Minister pursuant to the MSAF Decree 2009.

The Statement of Corporate Intent shall include the information listed in Section 50 of this Decree.

This document is MSAF’s combined Corporate Plan and Statement of Corporate Intent.

Vision Statement A corporate vision statement sets a dynamic and compelling view of the corporation at some point in the future.
M A R I T I M E S A F E T Y A U T H O R I T Y O F F I J I 67 A N N N U A L R E P O R T 2 0 1 3 KEY MSAF PARTNERS Auditor Legal Adviser(s) Insurance Adviser Banker Central Government Others - International Audi tor General Mavis Joseph (MSAF) Solicitor General Marsh Fiji Westpac Fiji Co- operation
Navigation and Lighthouse Authorities (IALA) (IHO)
(IHO) - ment Programme (SPREP)
(MPA) ISO 9001:2008 Adviser 68 Western Division Central and Eastern Division Northern Division Queens Wharf Level 4 Kadavu House Labasa Government Wharf Raymond Building, 1st Floor P.O.Box 326, Suva Damanu Street P.O.Box 316, Lautoka Phone: (679) 3315 266 P.O.Box 3704, Labasa Phone: (679) 6661 229 Fax: (679) 3303 251 Phone: (679) 9906 343 Port Denarau Marina Rakiraki Jetty Taveuni Jetty P.O.Box 3259, Nadi Vaileka House c/o Ofﬁce of the DO Phone: (679) 6750 241 P.O.Box 765, Rakiraki Waiyevo, Taveuni Fax: (679) 6750 242
 Phone: (679) 9906 346 Phone: (679) 9467 816 Navua Jetty Natovi Jetty Savusavu Wharf Matanitobua Building, Phone: (679) 9467 880/ 9467 878 P.O.Box 113, Savusavu Navua Phone: (679) 9906 345 Phone: (679) 8850 281 Fax: (679) 8850 281 Levuka Wharf Phone: (679) 8320 049 Nabouwalu Jetty Phone: (679) 9467 876 ANNNUAL REPORT 201372MARITIME SAFETY AUTHORITY OF FIJIPublished by:Maritime Safety Authority of FijiP.O.
Box 326, Suva, Fiji Islands414 Victoria Parade,Level 4, Kadavu House, Suva,Fiji Islands.