Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694868460812.pdf (Grenada)
2014 Annual Report STATUTORY OBLIGATIONS This report is prepared in compliance with the requirements of the Public Finance Management Act No 27 of 2007 Part X The Act requires that statutory bodies undertake the following: 1.

Four months before the commencement of each financial year submit a business plan containing the following: a.

Statement of objectives and priorities for the financial and the following two years b.
Financial plan showing how resources, including financial resources, will be allocated to meeting the objectives and priorities for the financial year and pro- forma financial statements; c. Comparison of pro-forma financial statements with actual financial statements for the previous financial year; d. Statement as to how the statutory body proposes to measure its performance in carrying out its responsibilities in the financial year.

2.
2.

Establish a mechanism for monitoring the implementation of the financial plan.

3.

Keep proper books of accounts, its income and other receipts and expenditure.

4.

Ensure that all moneys received are promptly and properly brought to account.

5.

Ensure that all payments out of its money are correctly made and properly authorized.

6.

Adequate control is maintained over its property and over the incurring of liabilities.
2 Table of Contents CORPORATE INFORMATION ...................................................................................................... About GIDC ......................................................................................................................................
Registered Office .............................................................................................................................. Bankers ............................................................................................................................................. Solicitors ...........................................................................................................................................
Auditor .............................................................................................................................................. BOARD OF DIRECTORS ............................................................................................................... CHAIRMAN’S STATEMENT ........................................................................................................ MANAGEMENT TEAM ................................................................................................................. STAFF............................................................................................................................................... Marketing & Promotion Department ................................................................................................ Business Development Department .................................................................................................. Investment Facilitation...................................................................................................................... Finance & Corporate Services .......................................................................................................... OVERVIEW OF THE BUSINESS OPERATING ENVIRONMENT ............................................ Marketing & Promotion .................................................................................................................... Investor Facilitation .......................................................................................................................... Business Development ...................................................................................................................... Industrial Estate ................................................................................................................................ Human Resource Management ......................................................................................................... Finance & Corporate Services .......................................................................................................... KEY DELIVERABLES FOR 2015 .................................................................................................. FINANCIAL STATES Auditor’s Report ...............................................................................................................................
Statement of Financial Position ........................................................................................................

Statement of Comprehensive Income ...............................................................................................
Statement of Cash Flow .................................................................................................................... Notes to Financial Statements ...........................................................................................................

Schedule of Statement of Comprehensive Income ...........................................................................
Basis of Allocation ............................................................................................................................
Statement of Changes in Equity ........................................................................................................ 3 LIST OF TABLES Table 1: Investment Applications and Projects ..................................................................... Table 2: Vacant rentable space ............................................................................................. Table 3: Capital Expenditure ................................................................................................. Table 4: Training and Development ...................................................................................... Table 5: Financial Highlights.................................................................................................
LIST OF FIGURES Figure 1: GDP Growth Rate .................................................................................................. Figure2: Sector Contribution to GDP ....................................................................................

Figure 3: Inflation Rate ..........................................................................................................
Figure 4: Investment Trends ..................................................................................................

Figure 5: FDI Inflow by Sector ..............................................................................................

Figure 6: Proposals Completed ..............................................................................................

Figure 7: Business Start Ups ..................................................................................................
Figure 8: Business Advice .....................................................................................................

Figure 9: Business Registration .............................................................................................

Figure 10: Workshops and Trained Persons ..........................................................................

Figure 11: Occupancy Trends ................................................................................................
Figure 12: Job Creation ..........................................................................................................

Figure 13: GIDC Organization Chart ....................................................................................

Figure 14: Trends in Revenue and Expenditure .................................................................... 4 CORPORATE INFORMATION VISION To be a highly ranked investment promotion agency globally, exceeding the expectations of those we serve.

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MISSION GIDC strives to contribute to Grenada’s socio-economic development by: 1.

Adopting a targeting approach in promoting investment opportunities, 2.

Providing superior investor facilitation and entrepreneurial development services, and 3.

Advocating for a supportive enabling environment for investors to develop and grow business, trade and industries.
OVERALL STRATEGIC GOAL To promote local and foreign investment, facilitate and strengthen entrepreneurial development within the growth sectors of Grenada’s economy.

5 About the GIDC GIDC is a statutory body established by the Government of Grenada on March 1, 1985, through an Act of Parliament (CAP 130B of the Revised Laws of Grenada 2011 as amended) to stimulate, facilitate and encourage the establishment and development of industry.
Its vision is to be a highly ranked investment promotion agency globally, exceeding the expectations of those we serve.

GIDC’s affairs are governed by a Board of Directors appointed by the Minister with responsibility for Industry.
Members of the Board are appointed in accordance with the Act establishing the Corporation, from amongst persons who have qualifications or have had proven experience in matters relating to Industry, Commerce, Finance, Accounts, Banking, Economics, Science, Law, Administration, Agriculture or Tourism.

The Board of Directors consists of ten (10) members including a Chairman and a Deputy Chairman.

Members of the Board hold office for a maximum period of three (3) years and are eligible for re-appointment.
The Chairman or in his absence the Deputy Chairman and two members form a quorum for the purpose of convening meetings.

GIDC’s corporate office is located at the Frequente Industrial Park.
Its core business processes include: a) Image Building - to create Grenada image as a business friendly environment and GIDC’s image as a professional result-driven entity; b) Investment Promotion - to market investment opportunities and generate new foreign and domestic investment projects; c) Investment Facilitation and Aftercare -to facilitate project establishment, retention and expansion; d) Business Development - to develop the capacity and competitiveness of local entrepreneurs; e) Advocacy – to create an enabling environment for private sector development.
GIDC provides investors with expert advice; the latest trade and investment information on the country; professional, efficient, courteous, ethical and transparent services to start and operate a business in Grenada.
GIDC also facilitates pre-investment site visits for foreign investors and provides small and medium sized enterprises with practical entrepreneurial/business skills training and hands-on assistance to develop business ideas, prepare and implement business plans, set up record keeping and other productivity systems.

GIDC’s effectiveness is premised on the following impelling factors: 1.

2.

3.

4.

5.
2.

3.

4.

5.

An enabling investment and business operating environment Targeted market-driven investment promotion Speedy, efficient and superior customer care Skilled and motivated staff Learning organizational culture.
6 REGISTERED OFFICES REGISTERED OFFICE Frequente Industrial Park Frequente St. George’s BANKERS CIBC First Caribbean International Bank Church Street, St. George’s SOLICITORS Grant Joseph & Co. Lucas Street, St. George’s Joseph & Joseph Lucas Street, St. George’s Kim George & Associates H. A. Blaize Street, St. George’s Samuel Phillip & Associates Lucas Street, St. George’s AUDITORS W. R. Agostini & Co Chartered Certified Accountants Archibald Avenue, St. George’s 7 BOARD OF DIRECTORS 2014 Ms. Leslie Ann Seon Mr. Gregory Renwick Mr. Carlton Frederick Mr. Nicholas Earle Brathwaite Ms. Isabelle Slinger Mr. Cyrus Griffith Mr.
Junior Mahon Mrs. Michelle Steele Mr. Mark Wilson Mrs. Sonia Roden Mrs. Sharon Gilchrist Chairman Deputy Chairman Director Director Director Director Director Director Director Director/CEO Corporate Secretary 8 CHAIRMAN’S REPORT In 2014, a key area of focus for the Board of Directors was the development and commencement of a strategy for organisational reform which it undertook by engaging in intensive specialist audits and evaluation of its operations, its mandate, and its human capital.
Indeed, 2014 was a challenging year for the GIDC.

It was a year marked by strategic reform initiatives focused on addressing its human capital development capabilities; reviewing the elements required for a workplace to function effectively; undertaking initiatives aimed at raising Grenada’s competitiveness as a preferred investment destination; and setting up a strategic framework to create an efficient business friendly environment.
Carrying forward from 2013, GIDC re-examined and reassessed its goals, objectives, strategies and key performance indicators that culminated with a Strategic Planning Session held in the second quarter of the year, in which the Board, Senior Management, Ministers of Government, and senior ranking Ministry Officials all participated alongside key partners and other stakeholders, critical to its operations.
Arising out of that important strategic planning session were several agreed strategic goals, which include:  Manage the Agency like a business to achieve strategic intent  Advocate changes in public policy to create an enabling environment  Stimulate economic activity by facilitating expansion and diversification of investments  Monitor and evaluate performance to remain relevant  Develop systemic approach to human resource management and development This Strategic Planning Process allowed GIDC to think critically about its context, by reviewing its institutional structure and effectiveness in line with global best practice for attracting economic investments and opportunities in small economies like Grenada.
At the request of Government, and with funding provided by the U.K. (DFID), the World Bank Group conducted an institutional assessment of GIDC during the third quarter of the year.

By December 2014, the Board of Directors agreed in principle with the initial strategic recommendations that are at the core of strategic reform for GIDC beginning 2015.

At the conclusion of the exercise, it is clear that GIDC is more than an Investment Promotion Agency; it is an Economic Development Corporation.
It has a broader mandate which requires amongst other things, the creation of strategic business units to work in a cross functional and matrixed manner.

This now forms the quintessence of the future strategic reform of GIDC targeted for completion in 2015, the thirtieth year of its existence.

Despite the financial constraints of 2014, we have continued to decrease our dependency on Government funds by a second voluntary reduction in subvention of ECD200K, as was also done 9 in 2013.
This is in keeping with our strategic goal to manage the Corporation like a business, and share in the national sacrifice, a necessary requisite under the structural adjustment programme.
I am mindful that notwithstanding this year of challenge, reform, evaluation and assessment of our purpose, mission, and objective at every level of the organisation, the achievements recorded for GIDC during 2014 directly relate to the critical roles played in investment generation, investment facilitation, business support services and the management of its Industrial Estates.
Some of these achievements include, but are not limited to:  the facilitation of twenty two (22) foreign investment applications with a proposed investment total of approximately EC$273.6 million;  employment creation estimated at approximately two hundred and five (205) jobs;  five (5) projects by foreign investors commenced operations in 2014 with a total actual investment upon commencement of operations of EC$34.8 million and the creation of three hundred and seventy (370) new jobs;  nine (9) domestic projects commenced operations with an actual investment of EC$21,352,000, creating a total of 115 jobs;  assistance to nineteen (19) small businesses to start up and upgrade their operations;  5% increase in occupancy within the industrial estates resulting in a 15% increase in employment being created within same.
I take this opportunity on behalf of the Board of Directors, Management and Staff to assure our clients and customers that we will continue to improve our services and processes to attract increased foreign and local investment; implement a programme for delivery of investor focused facilitation and aftercare service; expand opportunities for our small and medium enterprise (SME) businesses; diversify and augment revenue streams through a strategic development plan for our industrial park facilities; and, maximise our efforts and strategies to promoting an improved enabling environment for investment.
As GIDC approaches its 30th Anniversary on March 1st 2015, it does so with great optimism and confidence, that with an improved organisational structure and capacity through strategic reforms and institutional strengthening, we can effectively contribute to the economic development and growth of Grenada.
May I express my appreciation to the Honourable Minister of Finance and the Ministry of Finance for their continuing support of GIDC initiatives, the Board of Directors for their unwavering commitment to this pursuit of excellence through strategic reform, and to the hardworking management and staff for their dedication and commitment throughout 2014.
10 11 MANAGEMENT TEAM 2014 Mrs. Sonia Roden Mr. Ronald Theodore Ms. Khesha Mitchell Mrs. Sharon Penny Mr. Whyme Cox Chief Executive Officer Vice President Marketing and Promotion Vice President Business Development Vice President Finance and Corporate Services Vice President Investment Facilitation 12 EMPLOYEES AT THE START OF 2014 Promotion & Marketing Department 1.

Cathyann Alexander-Pierre 2.

Janelle Collins - Promotion & Marketing Specialist - Technical Assistant Business Development Department 3.
Beverly Alexander 4.

Katelyn Allard-Brathwaite 5.

Jeanelle Murray-Noel 6.

Kwesi Roberts 7.

Natalie Ruffin 8.

Kent Victor - Technical Assistant - Business Development Specialist - Business Development Training Specialist - Business Development Specialist - Business Development Sector Specialist - Business Development Sector Specialist Investment Facilitation 9.

Aphra Charles 10.

Clifford Lalsee 11.


Sheryl Anne Sylvester - Technical Assistant - Facilities Specialist - Facilitation Specialist Finance and Corporate Services 12.

Nathale Clarke-Lewis 13.

Adisa Alexis 14.

Veronica Andrew 15.

Jacinta Lewis 16.

Sharon Gilchrist 17.

Tracey Howell 18.

Renata Blair 19.

Jacintha Livingstone 20.


Raymond Joseph - Project Management Specialist - Information Specialist - Accounting Specialist - Technical Assistant - Administration - Corporate Secretary/Executive Assistant - Technical Assistant - Information - Customer Service Representative - Office Attendant - Courier 13 OVERVIEW OF THE BUSINESS OPERATING ENVIRONMENT IN 2014 During 2014, the economy’s Gross Domestic Product (GDP) growth rate increased by 4.32% compared with a growth of 2.42% in 2013.
Figure 1: GDP Growth Rate in current prices The largest contributing sectors to the economy were Education (22.71%), Real Estate, Renting and Business Activities (12.72%) and Transport and Communication (12.61%).
Figure 2: Sector Contribution to GDP 14 Agriculture Livestock , 5%Fishing, 2%Mining & Quarrying, 0%Manufacturing, 3%Electricity & Water, 3%Construction, 6%Wholesale & Retail Trade, 8%Hotels & Restaurants, 4%Transport, Storage and Communications, 13%Financial Intermediation, 7%Real Estate, Renting and Business Activities, 13%Public Administration, Defence & Compulsory Social Security, 8%Education, 23%Health and Social Work, 2%Other community, social & personal services, 2%Private Households with Employed Persons, 1%Sector% Controbution to GDP-8.00%-6.00%-4.00%-2.00%0.00%2.00%4.00%6.00%8.00%10.00%200920102011201220132014GDP Growth Rate (%) Unemployment remained high at 29.5%, however this figure decreased from 33.5% in 2013.
Inflation increased slightly by 0.61% in 2014, moving from -1.24% in 2012 to -0.63% in 2013.

Figure 3: Inflation Rate Investment Trends A total of forty-two (42) applications requesting incentive support for investment projects were received by GIDC in 2014, an increase of twenty percent (20%) over 2013.

A total of twenty- three (23) projects were facilitated and received approval for incentive support during the year, a five percent (5%) increase from 2013.
Fourteen (14) projects commenced operations for the year creating a total of four hundred and eighty-five jobs (485) a ninety-six percent (96%) increase from 2013.
Investment Applications and Projects Indicators 2009 2010 2012 2013 2014 Investment Applications Received Investment Projects Approved Investment Projects Implemented Investment Projects Commencing Operation Foreign Capital Inflow ($M) Jobs Created Table 1: Showing Investment Applications and Projects 15 The following graph represents the investment trends: Figure 4: Investment Trends 16 Marketing and Promotion Image Building Promotional Material GIDC developed several promotional materials to include brochures, fact sheets, and 2015 calendars which featured the Information Communication Technology sector.
Flash drives and CDs with investment data were also produced.

Print advertisements were placed in several magazines and newspapers to include the Caribbean Tourism Investment Guide, Rotary District Conference Book, and the Spice Map 2014-2015 Issue.

Website The GIDC website received 280,034 visits and 2,301,424 hits in 2014.

The top five (5) geographic locations of these visitors were China, USA, Australia, Canada and Germany.
One hundred and nineteen (119) investment inquiries were generated from the website.

Investor Generation Conferences Attended Presentations on Grenada as a potential investment location were made to the membership of the Istanbul Chamber of Commerce in Turkey, potential investors at the conference dubbed “Looking for New Opportunities for Trade and Investment, Mexico and the Caribbean” in Mexico, and to potential investors at the Talking Business-Caribbean conference in Geneva.
These events allowed for the promotion of Grenada as an ideal investment location, highlighting investment opportunities and a channel for the dissemination of information on doing business in Grenada.

Outreach Seminar GIDC made a presentation on “Opportunities within Grenada’s Emerging and Growth Sectors” in Grenville, St. Andrew’s to secondary school students on behalf of the Rotary Club.
Opportunity Profiles In keeping with the grant assistance received from Compete Caribbean for the development of the agribusiness sector, work commenced on the development of two opportunity profiles for projects within the sector.
One for the establishment of a soap and candle making enterprise utilizing Grenadian inputs, for export to the USA, Canada and the Caribbean and the other, the establishment of a packing house for the consolidation and export of selected Grenadian agricultural produce, fruits and vegetables to the USA, Canada, the EU and neighbouring Caribbean islands.

17 Inward Investment Missions Facilitated A total of five (5) investment missions from Canada, China, St. Lucia and Russia were facilitated during the year.
The missions were held to explore investment opportunities in Grenada.

Investment Leads A total of fifty-six (56) investment leads were generated during the period from which three (3) applications for incentives were received.

18 Investor Facilitation Investment Approval/Consents During the period, GIDC processed a total of forty-two (42) investment applications, twenty-two (22) of which were foreign investors and twenty (20), local investors.
Of this amount, twenty (20) were from the manufacturing sector, eleven (11) tourism, one (1) agro processing, two (2) from the fishing industry and eight (8) in the service industry.

Foreign Direct Investment (FDI) From the twenty-two (22) foreign investment applications received, six (6) were within the manufacturing sector, nine (9) within tourism and seven (7) from within the services sector.
The overall proposed investment for the FDI projects was EC$273,682,205 with an estimated employment of two hundred and five (205) jobs.

Investment Start Up A total of five (5) foreign projects commenced operations in 2014 which represents a twenty percent (20%) decrease from 2013.

The actual investment realized at the commencement of operations was EC$34,835,984 creating a total of three hundred and seventy (370) jobs.
Project Implementation A total of ten (10) foreign projects were implemented, with an estimated investment of EC$207,153,745 to create a total of seven hundred and seventy-three (773) jobs.

Source of FDI Figure 5: Pie Chart showing FDI Inflow by sector 19 Domestic Investment A total of twenty (20) applications for investment incentives were received from domestic investors during 2014.
Of the twenty (20) applications received, eleven (11) were within the manufacturing sector, one (1) within tourism, two (2) fishing, one (1) agro-processing and five (5) from within the services industry.

Investment incentives were granted to a total twelve (12) domestic investors, seven (7) from 2014 and five (5) from 2013.
Of the twelve (12) applications granted incentives, five (5) were within the manufacturing sector, three (3) within tourism, one (1) in agro-processing and three (3) from within the service sector.

The overall proposed investment of these projects was EC$41,279,094 to create a total of one hundred and thirty (130) jobs.

Project Implementation A total of eleven (11) domestic projects were implemented during 2014: i. ii.

iii.

Seven (7) were received in 2014 and four (4) from prior years.
Three (3) were in the manufacturing sector, three (3) in services and five (5) within the tourism sector.

Proposed investment for the projects implemented was EC$55,159,176.

Proposed employment for the projects implemented was one hundred and eighteen (118) persons.

Investment Start Up A total of nine (9) domestic projects commenced operations during 2014. i.

Six (6) were received in 2014 and three (3) from prior years.
Four (4) operating in the manufacturing sector, two (2) tourism, one (1) ITC and two (2) within the services sector.

ii.

The proposed investment for projects commencing operation was EC$55,364,631, creating a total of 158 jobs iii.

Actual investment realized upon commencement of operation was EC$21,352,000, creating a total of 115 jobs.
20 Business Development Enabling Environment Facilitation of Small Business Act Developed recommendation paper for the enactment of Grenada’s Small Business Act and submitted same to the Ministry of Legal Affairs based on recommendations that emanated from a consultation held with stakeholders in April, 2014.
Internship Agreement with SGU Developed a proposal to partner with the St. George’s University to implement an Internship programme with students undertaking their Bachelors and Master’s Degree in the areas of Business Administration, Finance, Marketing and International Business/Marketing.

This partnership seek to enhance the capacity of GIDC to undertake specialized projects and allow the students to apply what would they would have learnt.

The proposal was provisionally accepted by the University.
Projects Implemented Agribusiness Implementation of the Project- Increase in the Value Added Capacity of the Agri-Business sector funded by Compete Caribbean.

Under this project, the following were accomplished: 1.

Assessed the export potential, sectorial capability, niche investment and trade opportunities of the Agri-Business sector; 2.
Identified key drivers and critical success including recommendations on the institutional, legislative framework, physical and non-physical infrastructure required including marketing and compliance standards for the development of the sector; 3.

Prepared the Incentive framework/regime aligned with international best standards required to support the niche opportunities identified; 4.

Identified policy recommendations to develop the sector.
Implementation of the project-Increasing the Value Added to Nutmeg in Grenada funded by CDB Caribbean Aid for Trade and Regional Trust Fund (CARTFund) The main objective of this project is to increase the production and export of value added nutmeg products specifically utilizing the nutmeg pericarp/pod through the establishment of a cluster including agro-processors.
One of the key deliverables of this project is to train the cluster to produce and export value added products from recipes and formulations developed under the project.

During 2014, the following primary milestones were accomplished: 1.

Contracted three (3) Consultants to deliver major deliverables under the project- a Project/Nutmeg Cluster Coordinator, Business Development Consultant and a Product Development Consultant; 2.
Established a cluster including twenty-one (21) agro-processors with five (5) youths.

The agro-processors which form the productive arm of the cluster were registered as a Co- operative; 21 3.
Established a Project Steering Committee consisting of various business support organizations including the GIDC, the Grenada Bureau of Standards, Grenada Co- operative Nutmeg Association, the Produce Chemist Laboratory, Ministries of Trade, Social Development and Agriculture and the Chamber of Industry and Commerce to provide project oversight; 4.
Held various sensitisation workshops on the possible range of value-added food products that could be produced from the nutmeg as well as the market demand for these products; 5.

Developed Business Model and Business Plan to guide the operations of the cluster; 6.

Developed three (3) Business Expansion Plans for three Growth Stage Enterprises; 7.
Commenced the upgrade of The Produce Chemist Laboratory to facilitate the testing and production of products from recipes and formulations developed under the project and procured fruits, packaging materials, other ingredients and equipment to facilitate same.
Implementation of the OAS funded Craft Enhancement and Business Planning Project (Collaboration with the Grenada Tourism Authority, Ministry of Trade and Bureau of Standards) Coordinated training in Product Development for twenty one (21) existing craft artisans.

One to one coaching and mentoring were also provided to each artisan.

New sketches and technical specifications were also developed.
Implementation of the Technical Assistance Programme for SMEs under the Caricom Development Fund Country Assistance Program (Collaboration with the Grenada Development Bank) Prepared fifteen (15) business plans under this project and submitted to the Grenada Development Bank for SMEs to access funding.

GIDC’s role under this project is to prepare business plans for thirty (30) existing export oriented businesses and assist twenty five (25) with implementation by September 2015.
At least sixty (60) existing SMEs must also be trained in business principles.

By December, 2014, 139 were trained.

CARILED-Caribbean Local Economic Development Project (Component assisting SMEs in Carriacou to access training and business support as SMEs in Grenada) In partnership with the Business Resource Centre Carriacou, GIDC facilitated the establishment of an “ICT Bridge”/virtual ICT connectivity between the two institutions.
GIDC also assisted with the design of that component of the project, the procurement of equipment to ensure compatibility between the institutions and supported set-up.

To date, twenty six (26) SMEs have utilized the system for training and meetings.
MAREP-Market Access and Entrepreneurial Development component Trained seven (7) potential Business Development Officers in various aspects of business development and entrepreneurship, recruited and assigned three (3) Business Development Officers to MAREP Programme Management Unit Sauteurs, St. Patrick; Facilitated a workshop Staff.” of on “Enhancing Capacity MAREP twenty (20) the 22 Provision of Business Support Services 1.
Prepared forty-two (42) business plans and proposals to assist SMEs to access financing as follows: i. Forty (40) business plans-which included the business summary, marketing strategies summary, management summary and the development of break-even analysis and financial statements; ii.

Two (2) proposals were prepared on behalf of SMEs to access a reimbursable grant from Caribbean Export in the amount of EC$30,000.

Figure 6: Pie Chart showing proposals completed 2.


Assisted nineteen (19) businesses to start and upgrade their operation; Figure 7: Pie Chart showing business start ups 3.

Provided business advice and consultation to ninety six (96) businesses on starting and expanding their business in the areas of feasibility of the business idea, marketing the business, sourcing financing; etc.
23 40, 95%2, 5%Proposals CompletedBusiness PlansGrant Proposals5219Business-Start-Ups20132014 Figure 8: Bar graph showing business advice 4.

Assisted eighty nine (89) sole proprietorships, partnerships and non-profit organisations to prepare letters of application, statement of particulars and articles of incorporation to register their business name.

Figure 9: Bar graph showing business registration 5.
Coordinated and delivered eighteen (18) training workshops and small business forums of which three hundred and forty-one (341) persons participated.
Figure 10: Bar graph showing workshop held and persons trained 24 9689848688909294969820132014Business RegistrationBusiness Registration739602040608010012020132014Business AdviceBusiness Advice1018541341010020030040050060020132014Workshops Held & Persons Trained# of Workshops Held# of Pesons Trained Industrial Estate Occupancy During the year, the average percentage occupancy of the Industrial Estates was eighty-nine percent (89%) as compared to eighty-four percent (84%) in 2013.
Figure 11: Occupancy Trends Job creation Employment under the Industrial Estate programme was recorded at one thousand and sixty- eight (1,068) persons in 2014 a fifteen (15%) increase from 2013.
Details are depicted in the pie chart below: Employment Figure 12: Industrial Estates Job Creation 25 Vacant Space Six (6) new tenants joined the Industrial Estates in 2014; five (5) at the Frequente Industrial Park namely Spice Isle Coffee, Ali Baptiste (Seafood Burgers), David Ganpot, Alvin Dabreo, Clear Harbor (Expansion project) and one (1) at the Seamoon Industrial Park, Fresh Start.
Vacant rentable space as of December 2014: Location Frequente Seamoon St. Patrick Total Building # 10D 11D 11B3 Admin 1A1 Units 4 Unit 6 Unit 7 Area (sq.ft.)

924 1,842 1,134 2,000 3,520 167 167 167 9,921 Table 2: Vacant Space at the Industrial Estates Earnings Total billings for the period were EC$3,702,043 and total collections, EC$3,318,387.
Expenditure EC$794,946.00 was spent under the Industrial Estates Programme of which EC$1,537,284.62 was spent on major works to refurbish and maintain facilities as depicted below: CAPITAL WORKS Road works and car parks Building 12 upgrade to facilitate Clear Harbor upgrade expansion Replacement of roof on building 15&17 Replace metal cladding on buildings 4 with concrete blocks Install new fascia board, guttering & down pipes bldg.4 St Patrick’s Repairs Total Actual $ 116,769.09 $ 1,227,646.03 $ 59,998.00 $ 105,873.00 $ 26,998.00 $ 52,706.50 $1,537,284.62 Table 3: Showing Industrial Estates Capital Expenditure 26 Human Resource Management Personnel Three (3) new employees were hired during 2014: Khadijah Edwards – Facilitation Specialist, Keron Noel - Information Systems and Technology Specialist and Kurt Hercules - Research & Facilitation Specialist.
The count was reduced by six (6) employees during 2014: Adisa Alexis - January, Jeanelle Murray Noel - February, Khadijah Edwards - June, Kent Victor - August, Sonia Roden - September and Raymond Joseph - December.

The total number of employees at the end of 2014 was twenty-two (22) persons, of which four were Managers.
The organisational chart is depicted below: Figure 13: GIDC’s Organisation Chart Joachim & Associates was contracted to facilitate GIDC’s Strategic Planning Session which took place on May 24, 2014 and involved its Board of Director and stakeholders.

The main objectives were to provide GIDC with a roadmap, connect GIDC outputs to the national economic development plan for Grenada, provide background and context for communications with Ministries, picture the GIDC in the future, and develop strategic goals.
27 One of the outcomes of the Strategic Planning Session was the need for GIDC to align human capital and strategy through human resources initiatives that will improve overall function and create a competitive business environment.

A Human Resource Consultant began work in July 2014 to assess the organisational design and its ability to achieve the overall goals of the Corporation as well as to develop and implement best-practices for Human Resource Management (HRM) and Human Resource Development (HRM).
The work is continuing in 2015 as a result of the assessment of the institutional framework which started in November 2014.
Training and Development The employees at the GIDC were provided with the opportunity to attend a number of workshops, seminars, meetings and conferences as outlined in the table below: Workshop/Seminar/Meeting/Conference Creativity for Employment & Business Opportunity Partnership Official Launch of the ICT Bridge Training Programme on the Labour Market Information System Labour Market Needs Assessment Regional Workshop “Fostering The Green FDI Opportunity in Latin America & The Caribbean (Colombia) WAIPA World Investment Conference (Turkey) Caribbean Technological Consultancy Services Network Stakeholders Consultation (Guyana) Regional Consultation on Market Intelligence & Regional Export Strategy Development (Barbados) Customer Service Excellence Training Gender Mainstreaming in Caribbean Trade Policies & Programmes- Promoting Gender equality for improved Trade & Development (Barbados) 3rd Annual Caribbean Valuation and Construction Conference “Managing Risks in Real Estate and Construction.”(Barbados) Tools for Mobilising Renewable Energy in the Caribbean 02 13 June 16-19 June 21 - 22 October Revised Labour Code Table 4: Training and Development December 05 December 28 Date Employee(s) 13 March K. Brathwaite B. Alexander 13 March K. Roberts 18 March C. Pierre 30 April C. Pierre 6-8 May R. Theodore R. Theodore 12-16 May 26-28 May 5-6 June K. Roberts K. Brathwaite R. Blair K. Victor S. Fletcher W. Cox W. Cox M. Mc Donald C. Pierre J. Lewis Finance and Corporate Services Ninety percent (90%) of receivables were collected for the period.
Operating revenue was recorded as EC$4,365,186 while bad debts were recorded at EC$85,375.

The total net surplus for 2014 was EC$433,981.

The financial highlights are shown below: Key Indicators 2009 2010 2011 2012 2013 2014 Operating Income Operating Expenditure Gross Operating Surplus General & Admin.
Expense 2,730,500 2,918,979 3,624,872 4,074,145 4,358,890 4,365,186 1,729,092 1,757,993 1,882,553 2,088,549 2,252,814 2,603,810 (1,001,408) (1,160,986) (1,742,319) 1,985,596 2,106,076 1,761,376 1,744,856 1,792,347 2,181,159 2,173,429 2,092,138 1,895,040 Surplus/ Deficit (743,448) (631,361) (438,840) (187,833) 13,938 (133,664) Revenue Grants 946,145 868,228 790,311 815,682 767,645 567,645 Net Surplus/ Deficit 202,697 236,867 351,471 627,849 781,583 433,981 Table 5: Financial Highlights Figure 14: Bar Chart showing Trends in revenue and Expenditure 29 KEY EXPECTED OUTCOMES FOR 2015 Major expected outcomes for the year 2015 include: 1.
More favourable perception of Grenada as an attractive investment location and of GIDC as a results driven organisation.

2.

Increase in GIDC’s capacity and core competencies to promote and facilitate private sector investment activities.

3.

30% increase in the number of investor site visits.

4.

Foreign direct investment interest in at least two investment projects to create at least 200 jobs.

5.
5.

Improved inquiry handling procedures and internal operational efficiencies leading to strengthened capacity for providing services required by GIDC’s clients.

6.

Improved enabling environment that supports international competitiveness and SME development.

7.

At least 15 SMEs commencing operations and at least 175 potential entrepreneurs trained in entrepreneurial development.

8.

Diversified revenue stream and increased surplus of 15%.
30 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 31 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Financial Statements For the Year Ended December 31, 2014 CONTENTS Page Auditors’ Report ........................................................................................................... 28 Statement of Financial Position .........................................................................................30 Statement of Comprehensive Income ................................................................................31 Statement of Changes in Equity ........................................................................................42 Statement of Cash Flow .....................................................................................................32 Notes to Financial Statements ...........................................................................................33 Additional Information .....................................................................................................41 32 Report of the Auditors to the Board of Directors Grenada Industrial Development Corporation We have audited the accompanying financial statements of Grenada Industrial Development Corporation, which comprise the statement of financial position as at 31 December 2014 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing.

Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
33 Report of the Auditors to the Board of Directors Grenada Industrial Development Corporation Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the corporation as at 31 December 2014 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole.
The additional information produced on pages 14 to 19 is presented for the purposes of additional analysis and in compliance with the CDB loan agreements.

This data is not a required part of the basic financial statements.

Such information has been subjected to the procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

St. George’s, Grenada.

11 March, 2015.


Chartered Certified Accountants.
34 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Statement of Financial Position at December 31, 2014 (With comparative figures for 2013) ASSETS Current Assets Cash and cash equivalents Accounts receivable & prepayments Notes 2014 2013 3 4 $ 2,306,626 220,032 2,157,868 289,977 Total current assets 2,526,658 2,447,845 Property, plant and equipment 5 75,192,951 38,117,154 Total assets $77,719,609 40,564,999 Financed By: LIABILITIES AND EQUITY Current Liabilities Accounts payable & accrued charges Current portion of long term debt 6 7 $ 563,913 1,400,049 496,720 343,246 Total current liabilities 1,963,962 839,966 Net Long Term Debt 7 5,448,436 5,882,381 Corporation’s Equity Government’s contribution Appraisal surplus Deferred capital grant Accumulated surplus Net equity (Page 6) Total liabilities and equity 24,563,160 44,001,851 189,465 1,552,735 24,383,607 8,139,681 200,610 1,118,754 70,307,211 33,842,652 $77,719,609 40,564,999 See accompanying notes which form an integral part of these financial statements.
Approved on behalf of the Board: 35 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2014 (With comparative figures for 2013) Income Factory rental (Schedule 1) Other income (Schedule 2) Total income Less direct expenditure (Page 17) Gross operating surplus 2014 2013 $3,702,043 3,692,409 663,143 666,481 4,365,186 4,358,890 2,603,810 2,252,814 1,761,376 2,106,076 Less general & administrative expenses (Page 18) 1,895,040 2,092,138 Net operating surplus/(deficit) before revenue grants (133,664) 13,938 Revenue grants (Schedule 3) Net surplus for the year 567,645 767,645 $ 433,981 781,583 See accompanying notes which form an integral part of these financial statements.
36 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Statement of Cash Flow For the year ended December 31, 2014 (With comparative figures for 2013) OPERATING ACTIVITIES 2014 2013 Net surplus for the year Add non-cash charges - depreciation (Gain)/loss on disposal of property, plant & equipment (Increase)/Decrease in accounts receivable & prepayments Increase (Decrease) in accounts payable & accrued charges $ 433,981 263,273 - - 69,945 67,193 781,583 612,638 (127,297) (34,377) Net cash flow from operations 834,392 1,232,547 INVESTING ACTIVITIES Proceeds from the sale of property, plant & equipment Purchase of property, plant & equipment - (1,476,900) - (2,750,231) Net cash flow from investing activities (1,476,900) (2,750,231) FINANCING ACTIVITIES Government contribution received Long term loan received Loan repayments Decrease in deferred capital grant 179,553 1,000,000 (377,142) (11,145) 2,720,072 - (359,112) (11,145) Net cash flow from financing activities 791,266 2,349,815 Net increase in cash and cash equivalents 148,758 832,131 Cash and cash equivalents at beginning of year 2,157,868 1,325,737 Cash and cash equivalents at end of year (Note 3) $2,306,626 2,157,868 See accompanying notes which form an integral part of these financial statements.
37 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Notes to Financial Statements - December 31, 2014 1.

INCORPORATION AND PRINCIPAL ACTIVITY The Corporation was incorporated by Act of Parliament No.

2 of 1985 for the purposes of stimulating, facilitating and undertaking the establishment and development of industries in Grenada.

At the statement of financial position date, the Corporation employed 23 persons on a permanent basis and 2 temporary workers (2013: 26 persons).

2.
2.

SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Accounting: These financial statements have been prepared in compliance with International Financial Reporting Standards, and in accordance with the historical cost convention, with the modification stated in the note to property, plant and equipment.

(b) Foreign Currencies: The Eastern Caribbean Dollar is the functional currency of measurement and presentation of the Corporation’s financial statements.
Foreign currency transactions during the year have been recorded at the rates of exchange ruling at the dates of the transactions.

Monetary amounts receivable or payable at the year-end in foreign currencies are translated to the functional currency at the rates of exchange ruling at that date.

Profits or losses on translation of monetary items are reflected in comprehensive income.
Monetary items are units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency.

Non-monetary items carried at historical cost are reported using the exchange rate at the date of the transaction.

Other non-monetary items which are carried at fair value are reported at the exchange rate that existed when the fair values were determined.
When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is also recognized in other comprehensive income.

Conversely, when a gain or loss on a non-monetary item is recognized in comprehensive income, any exchange component of that gain or loss is also recognized in comprehensive income.
Other comprehensive income comprises items of income and expense that are not recognized in profit or loss but rather in equity, such as changes in appraisal surplus, remeasurements on defined employee benefit plans, etc.

(c) Revenue Recognition: The Corporation is engaged in the service industry.
In general, revenue is recognised when the outcome of a transaction can be estimated reliably and taking into consideration the probability of economic benefits flowing to the Corporation, the stage of completion of the transaction at the statement of financial position date and the costs incurred on and to complete the transaction.

Grants receivable are recognised when there is reasonable assurance that the Corporation will comply with the conditions attaching to them and that the grants will be received.
Such grants are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis.

Applying this principle, grants related to income are recognised as income in the same period as the related expenses.

Grants related to assets are accounted for as deferred income on the statement of financial position and recognised as income over the useful lives of the assets involved.
Interest income is recognised on a time basis using the effective interest rate method.

38 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Notes to Financial Statements - December 31, 2014 2.

SIGNIFICANT ACCOUNTING POLICIES - Continued (d) Estimates: Preparation of financial statements in conformity with International Financial Reporting Standards requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.

(e) Financial Instruments: A financial instrument is defined as any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

A financial asset is a contractual right to receive cash in the future, while a financial liability is a contractual obligation to deliver cash in the future.
Financial instruments carried on the statement of financial position include cash and cash equivalents, accounts receivable, trade payables and borrowings - short and long term.

A financial asset or a financial liability is recognised when the Corporation becomes a party to the contractual provisions of the instrument and in the case of a financial asset when control over the asset is transferred to the Corporation.
All financial assets and financial liabilities are recognised on the statement of financial position or in the notes to the financial statements.

Upon initial recognition, they are measured at cost, which is the fair value of the consideration given or received to acquire the financial asset or liability.

Transaction costs are included in the initial measurement of all financial assets and liabilities.
Subsequent to initial recognition, all financial assets are remeasured to fair value, except for the following: i() ii() iii() loans and receivables originated by the Corporation and not held for trading.

other fixed maturity investments, such as debt securities and mandatorily redeemable preferred shares that the Corporation intends and is able to hold to maturity; and financial assets whose fair value cannot be reliably measured, such as some equity instruments (shares) with no quoted market price.
At the statement of financial position date, the carrying amounts of financial assets required to be remeasured are approximately equal to their fair value, which is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Other financial assets are carried at amortised cost, less allowance for impairment in value.
Financial liabilities, after acquisition, are measured at original recorded amount less principal repayments and amortisation.

For financial assets and liabilities remeasured to fair value, differences arising on remeasurement are recognised in comprehensive income for the period.

(f) Other significant accounting policies adopted are disclosed in the appropriate notes below.

Where changes have been made in presentation, comparative figures have been restated.
39 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Notes to Financial Statements - December 31, 2014 (Continued) 3.
CASH AND CASH EQUIVALENTS Petty Cash Term deposit First Caribbean International Bank - Current account - Project account Grenada Co-operative Bank - Savings account - Current account Total 2014 2013 $ 400 1,031,500 826,780 7,365 294,810 145,771 400 1,000,000 772,301 52,616 285,706 46,845 $2,306,626 2,157,868 Cash and cash equivalents included in the cash flow statement comprise the above statement of financial position amounts.
Interest is earned on the savings account at the rate of 3.5% per annum, while the interest on the term deposit is 3.15% per annum.

4.
4.

ACCOUNTS RECEIVABLE & PREPAYMENTS 2014 2013 Amounts due from tenants Less: Provision for doubtful debts Other accounts receivable and prepayments Less provision for doubtful debts Total $740,406 648,141 1,293,188 1,100,976 92,265 192,212 132,679 4,912 105,209 7,444 127,767 97,765 $220,032 289,977 Provision for doubtful debts is made based on the specific identification of doubtful balances.

As debts become uncollectible they are written off against the provision.
Additions to the provision are charged to comprehensive income.

40 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Notes to Financial Statements - December 31, 2014 (Continued) 5.

PROPERTY, PLANT AND EQUIPMENT - Continued (i) The Corporation’s lands and buildings at Frequente, Seamoon and St. Patrick were valued by the qualified engineering firm of Latitudes Consult in October 2014.

This valuation resulted in an appraisal surplus of $35,862,170 which is included in these financial statements.
A previous valuation was conducted in May 2004 by the qualified engineering firm of Joseph John and Associates Limited.

This valuation covered only the properties at Frequente and Seamoon and the values did not vary much from the previous valuation done in May 2002.

Accordingly, no appraisal adjustments were made for the 2004 valuation.
(ii) Had property, plant & equipment been carried at historical cost, the combined net carrying value of land and buildings at the statement of financial position date would have been $31,137,064.

(iii) Included in “buildings” is the amount of $305,672 representing the cost of a building constructed by the Corporation in Carriacou and known as the Carriacou Incubator.

Cabinet approved the transfer to the Corporation of the land on which the building is constructed.
The full legal vesting process has not been completed.

However, in August 2005, Cabinet further approved the use of the building rent free by the T.A.

Marryshow Community College for educational purposes.

Some property, plant & equipment are stated at historical cost and others at valuation.

Depreciation is provided on the straight line basis, at rates sufficient to write off the cost or valuation of the assets over the period of their estimated useful lives.
Maintenance and repairs are charged to current operations, whilst the cost of improvements are capitalised.

The cost of property, plant and equipment sold, retired or otherwise disposed of and the accumulated depreciation thereon are eliminated from the accounts and the resulting gain or loss reflected in comprehensive income.

The annual rates used in providing for depreciation are as follows: Buildings Motor vehicles Furniture, fixtures & equipment 2% 20% 10% & 33% 6.
ACCOUNTS PAYABLE & ACCRUED CHARGES 2014 2013 Advanced rentals & security deposits Other payables, accruals and provisions Total $394,894 407,190 169,019 89,530 $563,913 496,720 41 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Notes to Financial Statements - December 31, 2014 (Continued) 7.
LONG TERM DEBT Total Total Due within Net Long Term Caribbean Development Bank 2% Loan (Note i) Grenada Development Bank Loan #1 (Note ii) Loan #2 (Note iii) Loan #3 (Note iv) First Caribbean Int’l Bank (Note v) Grenada Cooperative Bank Total (2013 2013 Balance 2014 one year 2014 2013 $2,185,039 2,058,370 126,669 1,931,701 2,058,370 63,464 47,060 17,724 29,336 24,269 52,766 100,683 77,035 254,097 214,374 45,600 168,774 3,622,344 3,451,646 185,787 3,265,859 - 1,000,000 1,000,000 - 43,476 77,733 223,658 3,479,144 - $6,225,627 6,848,485 1,400,049 5,448,436 5,882,381 6,225,627 343,246) (i) This loan is secured by the guarantee of the Government of Grenada and is repayable in thirty (30) years, which commenced December 31, 2000, by equal quarterly payments of principal of US$11,728.
(ii) This loan is unsecured and is repayable in one hundred and twenty eight (128) fixed monthly instalments of $1,558.

Interest is payable at 4% per annum.

(iii) This loan is unsecured.

At present it is repayable in one hundred and twenty six (126) fixed monthly instalments of $2,425.

Interest is payable at 6% per annum.

(iv) This loan is secured by a first legal mortgage on 19,236 sq.
ft. of land with building thereon situate at Lower Town, Main Street, Sauteurs, St. Patrick and is repayable in one hundred and twenty (120) months with a fixed monthly instalment of $4,500 inclusive of interest at 6% per annum.

(v) This loan is secured by a first legal mortgage over 84,984 sq.

ft. of commercial land located at Frequente Industrial Estate, together with two buildings thereon.
Additionally, the bank holds two insurance policies on the buildings totalling $27.8 million as further collateral for the loan.

Interest on the loan is at the rate of 8.5% per annum and it is repayable in one hundred and eighty (180) months ending on 30 May, 2026.

The monthly installment is $39,334, including interest.

(vi) This loan is secured by term deposit of $1,000,000.

The loan was taken to refurbish building #12 at Frequente Industrial Park and is repayable within a period of six months.
Interest is payable at the rate of 7% per annum.

42 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Notes to Financial Statements - December 31, 2014 (Continued) 8.
CAPITAL COMMITTMENT At the statement of financial position date, the Corporation had the following outstanding capital commitments, in respect of the stated projects: Administrative and Commercial Complex, Frequente, St. George Small Business Incubator in Carriacou - Phase II Total Total Project Cost Expenditure Outstanding To Date Commitment $7,382,136 1,306,800 6,075,336 990,832 - 990,832 $8,372,968 1,306,800 7,066,168 Note: The total project cost of the Administrative and Commercial Complex includes $1,306,800 in real estate currently owned by the Corporation.
This amount is also shown as expenditure to date on the project.

9.

POTENTIAL FOR EXPANSION In 2002 Cabinet approved the vesting of 8.5 acres of land at Seamoon to the Corporation for expansion of the Industrial Park.

At the statement of financial position date no capital programme had been developed by the Corporation in this connection.

The value of the land is included in these financial statements at a value of $7 a sq.

ft., as advised by the Inland Revenue Department.
43 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Schedules to Statement of Comprehensive Income For the year ended December 31, 2014 (With Comparative figures for 2013) FACTORY RENTAL INCOME - Schedule 1 2014 2013 Frequente Industrial Park Seamoon Industrial Park St. Patrick Grenada Craft Centre Total OTHER INCOME - Schedule 2 Interest income Project appraisal fees Miscellaneous income Business development centre CYEP Project CTCS project MAREP project CART fund Total REVENUE GRANTS - Schedule 3 Government of Grenada GIDC SEDU U.S.A.I.D.
Total 44 $3,109,865 489,935 102,243 - 3,070,367 451,188 99,403 71,451 $3,702,043 3,692,409 $ 67,937 10,915 5,030 24,400 - - 9,205 545,656 63,858 17,413 419 38,020 300,374 23,427 142,155 80,815 $663,143 666,481 $281,500 275,000 11,145 481,500 275,000 11,145 $567,645 767,645 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Basis of Allocation and Apportionment of Revenue and Costs For the year ended December 31, 2014 1.
Revenue, comprising factory rental, grants and other income is allocated on a direct basis according to the department which produced, or which was the targeted beneficiary of, the income.

2.

Direct Expenditure: All expenses relating to individual departments were identified and charged to the respective departments.

3.

General and Administrative Expenses: As indicated on page 18, these are apportioned to departments on the basis of the direct expenses of the individual departments.
45 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Additional Information to Financial Statements For the Year Ended December 31, 2014 CONTENTS Schedules to Statement of Comprehensive Income Departmental Statement of Comprehensive Income Apportionment of General and Administrative Expenses CYEP Schedule of Disbursements Basis of Allocation and Apportionment of Revenue and Costs Page 39 31 45 43 40 46 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Statement of Changes in Equity For the Year Ended December 31, 2014 Government’s Capital Appraisal Capital Surplus/ Contribution Surplus Grant (Deficit) Deferred Accumulated Total Balances at 31 December, 2012 $21,663,535 8,139,681 211,755 337,171 30,352,142 Transfer to current income - - (11,145) Contribution during the year 2,720,072 - - - - (11,145) 2,720,072 Net surplus for 2013 - - - 781,583 781,583 Balance at 31 December, 2013 24,383,607 8,139,681 200,610 1,118,754 33,842,652 Transfer to current income - - (11,145) - (11,145) Appraisal surplus - 35,862,170 Contribution during the year 179,553 - - - - 35,862,170 - 179,553 Net surplus for 2014 - - - 433,981 433,981 Balance at 31 December, 2014 24,563,160 44,001,851 189,465 1,552,735 70,307,211 Notes (i) Government’s Capital Contribution represents the net value of assets vested to the Corporation by Government at the commencement of operations plus subsequent contributions in the form of debt forgiveness and payments on behalf of the Corporation.
(ii) The appraisal surplus represents the excess of a revaluation of the Corporation’s lands and buildings over their carrying values.

The appraisal was done in October 2014 by the qualified engineering firm of Latitudes Consult.

(iii) Deferred Capital Grant represents the balance of a grant made to the Corporation by the U.S.A.I.D.

in 1990 for the construction of the Seamoon Industrial Estate in St. Andrew.
The Grant is being amortised to revenue over a forty-year period, being the estimated useful life of the buildings constructed with the grant funds.

See accompanying notes which form an integral part of these financial statements.
47 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Caribbean Youth Empowerment Project (CYEP) Schedule of Disbursements For the Year Ended December 31, 2014 Salaries, wages and staff costs Advertising and promotion Seminars and work shop Total 2014 2013 $ - - 35,826 - - 318,856 $ - 354,682 48 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Notes to Financial Statements - December 31, 2014 (Continued) 5.
PROPERTY, PLANT & EQUIPMENT Cost or Valuation At 31 December 2012 Additions Disposals At 31 December 2013 Additions Disposals Revaluation surplus Land $15,614,620 2,591,820 - 18,206,440 - - 9,163,680 Furniture Motor Fixtures & Buildings Vehicles Equipment Total 24,354,660 83,677 - 103,000 - - 1,001,277 74,734 (17,823) 41,073,557 2,750,231 (17,823) 24,438,337 1,467,237 - 22,188,456 103,000 - - - 1,058,188 9,663 - - - 43,805,965 1,476,900 31,352,135 At 31 December 2014 27,370,120 48,094,030 103,000 1,067,854 76,635,000 Accumulated Depreciation At 31 December 2012 Depreciation charge Eliminated on disposals At 31 December 2013 Depreciation charge Eliminated on disposal At 31 December 2014 Carrying Amount At 31 December 2013 - - - 4,099,870 488,767 - 102,999 - - 891,128 123,871 (17,822) 5,093,997 612,638 (17,822) - 4,588,637 102,999 997,175 5,688,811 - - 246,633 (4,510,034) - - 16,640 - 263,273 (4,510,034) - 325,236 102,999 1,013,815 1,442,050 $18,206,440 19,849,700 1 61,013 38,117,154 At 31 December 2014 $27,370,120 47,768,794 1 54,034 75,192,949 49 GRENADA INDUSTRIAL DEVELOPMENT CORPORATION Apportionment of General and Administrative Expenses For the Year Ended December 31, 2014 Salaries, wages & other staff costs Depreciation Electricity Repairs & maintenance Bad debt expense Telephone and fax Travelling Directors' remuneration Office supplies Janitorial expenses Motor vehicle expenses Audit fees and expenses Bank charges Dues, subscription and seminars Postage Staff training Miscellaneous expenses Insurance Entertainment Total 2014 2013 $ 912,811 $ Apportioned as Follows: Percentages Amounts CDB Funded Frequnte CDB Funded Seamoon USAID Funded Frequente Craft Centre Investment Promotion Business Development St. Patrick Buildings 10 and 11 Frequente Caribbean Youth Empowerment Project MAREP CTCS Projects Cart Fund Total 100.00% 100.00% 1,895,040 2,092,138 The above was apportioned on the basis of the direct expenses of the individual departments.
50 51