SAMOA AIRPORT AUTHORITY
ANNUAL REPORT 2013
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SAMOA AIRPORT AUTHORITY
TELEPHONE: +685 23201
FAX: +685 24281
AFTN: NSFAYDA
www.samoaairports.ws
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Honourable Speaker of the House
Legislative Assembly
MULINUU
In accordance with Section 45 (4) of the Samoa Airport Authority Act 2012 and the Public Bodies (Performance and
Accountability) Regulation 2002, Schedule 6 paragraph 6.7, I hereby submit to the Legislative Assembly the Annual Report
and Audited Accounts of the Samoa Airport Authority for the year ended 30 June 2013.
Ma lo’u fa’aaloalo lava,
Honourable Manu’alesagalala Enokati Posala
Minister of Works, Transport and Infrastructure
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Table of Contents
CHAIRMAN’S MESSAGE …………………………………………………………………………………………………………………………………….5
GENERAL MANAGER’S REPORT……………………………………………………………………………………………………………………………..6
AUDITED FINANCIAL STATEMENTS……………………………………………………………………………………………………………………..16
DIRECTORS’ REPORT ……………………………………………………………………………………………………………………………………… 17
AUDITOR’S REPORT …………………………………………………………………………………………………………………………………………18
INCOME STATEMENT FOR THE YEAR ENEDED 30 JUNE 2013 …………………………………………………………………………..19
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013 …………………………………………………….20
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013 ……………………………………………………………………………..21
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013 …………………………………………………………………23
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 …………24
SUPPLEMENTARY INFORMATION NOT REQUIRED FOR STATUTORY PURPOSES ……………………………………………….32
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CHAIRMAN’S MESSAGE
It gives me great pleasure to present the Annual Report for the Samoa Airport Authority for the year ended 30th March 2013.
Sustainable growth and ensuring the provision of professional services summarises the Authority’s attitude in gauging its
developments and indicators for the past year. The Board of Directors, Management and their staff have managed to steer
it’s operation forward. I, for one will testify to the fact that they have done an exceptional job ensuring the Authority strives
to serve its customers efficiently while complying with International Civil Aviation Legislations and Regulations.
There are fundamental and innovative changes forthcoming for the infrastructure of the Authority which are essential. Our progress will become increasingly visible to our stakeholders, as customers experience the tangible benefits of the improvements we have made. I am confident that these changes will deliver a more valuable aerodrome. The deliverance and execution of changes requires hard work, perseverance and most of all commitment. I thank the Board of Directors, Management and their staff sincerely for their valued contributions over the past financial year. May God Bless us All! Soifua,
Logo Silao Lemana CHAIRMAN
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GENERAL MANAGER’S REPORT
The Authority in the past year had continued to focus its attention on achieving its vision of becoming the most efficient, safe and secured small island airport in the region. To achieve this vision, we had concentrated on improving our service delivery in terms of cost and quality and to ensure that we comply with all applicable standards. Summarised below are some of the achievements for the period under review;
1. Terminal Upgrades Routine maintenance and refurbishment were done during the year to improve the standard of Terminal Building. This includes the extension and refurbishment of all bathrooms at the Terminal and the re-positioning of the Security Area and the Immigration Area in the departure area. Rehabilitation work was also done to the walkways that were damaged by Cyclone Evans. Additional work was also done to expand the departure lounge to accommodate a new Coffee Shop by relocating the Duty Free Shop.
2. New Chairs
Replacement chairs for the departure lounge were acquired to improve the standard of furniture at the Airport
3. New VIP Building A new VIP Building was approved for construction in preparation for the SIDS meeting which was held in Samoa.
4. Aleipata Airport
Aeronautical studies for the Aleipata Airport had been completed.
5. Car Park Ticketing The tender result for the procurement of a new car park ticketing system had been approved.
6. Communication Equipment
A new VHF communication repeater was installed at Mount Vaea to improve the quality of Communication between Controllers and aircrafts.
7. Security Fence
Replace the chain link fence along the coast with a new fence made from non-corrosive materials.
8. Vehicles/Tractor/Bus. 2 replacement vehicles were acquired for the RFS and AVSEC Unit. A new bus was also acquired for the transportation of workers to and from the office.
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9. Financials The year under review saw an increase in revenues by 38% while expenses rose by approximately 11%. As a result a profit of $1,102,380 was realized in the financial year ended June 2013. This is the first time that the Authority had managed to earn a profit since 2001. The net profit percentage had increased from minus 14% in 2012 to a positive 8% in 2013. The liquidity position of the Authority in the short term remains stable. The current ratio had slightly improved from 2.6 : 1 in 2012 to 2.7 : 1 in 2013. The Authority is financing 93% of assets in 2013 compared to 92% in 2012. The increase in self-financing of assets had resulted in the reduction of cash balances by 31% in 2013 compared to 2012. In summing up, I am excited by the potential for future growth of the Authority. There will always be challenges but I am confident that with the support of the Board of Directors, Management and Staff, the road ahead can reap rewards for the Government, Industries and the people of Samoa.
ACCOMPLISHMENTS
Terminal Upgrades
Renovations were made to the Arrival and Departure Lounges
New chairs for the Departure area
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Re-positioning of Security and Immigration check points
New walkway to replace walkway damaged by Cyclone Evan
Before …
and After
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Refurbishment and extension of existing bathrooms
New VIP building
Began construction of new VIP building.
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Aleipata Airport
Aeronautical study for the development of Aleipata Airport was commissioned and completed
Integrated Safety Management Systems (SMS)
A draft Integrated Safety Management System incorporating Finance, Safety and Occupational Health and Safety is
being reviewed for implementation in 2015 Financial year.
Car Park Ticketing System
Tender for a new computerised Car Park Ticketing system was approved.
Communications Equipment Acquired a new portable stand-by generator for Mt. Fiamoe. A new Very High Frequency (VHF) Communication Repeater installed at Mt. Vaea.
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Security Systems Enhancement
Two lane walk-through metal detectors installed at Security check point
Start installation of a new vinyl security fence on seaside
Two new four wheel drive vehicles acquired for Security and Rescue Fire patrols
AVIATION SECURITY SERVICES
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RESCUE FIRE SERVICES
Departure Tax
Departure tax was incorporated into the price of airline tickets
New Resources
Acquired a new bus for staff transportation
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and acquired a Tractor for ground maintenance.
Ma lo’u fa’aaloalo lava,
Magele Hoe Viali
GENERAL MANAGER
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AIRCRAFT MOVEMENT
YEAR 2011 2012 2013
Aircraft Movement 4,726 4,998 4375
% Change -2% 1% -12%
Aircraft 4,726 4,998 4375
There was a slight decrease in the aircraft movement in comparison to the previous year, possibly due to milestone
events that occurred in 2012; i.e 50th Anniversary Independence celebrations and the increase in airfares thus being
imposed onto the travellers which in turn limited many of the travelling public.
0
100
200
300
400
500
600
700
Aircraft Movement
Aircraft Movement
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SIX YEAR COMPARISON – Passenger Movement
YEAR 2008 2009 2010 2011 2012 2013
Arrivals 166,423 169,751 151,688 152,111 151,214 138,079
Departures 161,003 165,227 151,575 152,232 151,880 139,911
0
50,000
100,000
150,000
200,000
2008 2009 2010 2011 20122013
Trav
elli
ng
Pas
sen
gers
Passenger Movements
Arrivals
Departures
A slight decline in the travelling public for obvious costs imposed upon travelers.
o
t
a
l
r
e
c
o
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SAMOA AIRPORT AUTHORITY
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
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SAMOA AIRPORT AUTHORITY
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2013
The directors present their report together with the financial statements of the Authority for the year ended 30 June 2013 and the auditor’s report thereon.
Directors
As of the date of this report, following are the newly appointed directors to control and oversee the Authority's direction for the next three year term.
Logo Silao Lemana (Chairman) Samau Ieru Lokeni
Vui Sebastian Mariner Solialofi Vaipou Harry Porter Vaatuitui Apete Leonidas Meredith
Tuala Tommy Stancil Samoa Roy Lee
Principal activities The principal activities of the Authority are to establish, improve, maintain, operate and manage aerodromes
in addition to associated services and facilities in connection with the operation of aerodromes under its ownership or with the operation of any aircraft engaged in civil aviation.
State of affairs The directors are of the view that the attached statement of financial position gives a true and fair view of the
state of affairs of the Authority as at 30 June 2013 and that the income statement gives a true and fair view of the result and cash flows of the Authority for the year then ended.
Operating results The operating profit for the year ended 30 June 2013 was $1,102,380 (2012: loss $1,342,824)
Events subsequent to balance date There are no other events which have arisen in the interval between the end of the financial year and the date
of this report which in the opinion of the directors have affected significantly the operations of the Authority, the results of those operations, or the state of affairs of the Authority in subsequent years.
On behalf of the Board
………………………………..
Chairman of Board of Directors
Director
30 November 2013 Apia
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SAMOA AIRPORT AUTHORITY
INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2013
2013 2012
Notes $ $
INCOME Operating income
13 12,693,33 9,113,467 Interest income
75,290 51,515
Defer income amortisation
10 319,600 319,600 Dividend income
- -
Gain on disposal of fixed assets
- -
13,088229 9,484,581
EXPENSES Audit fees
25,732 19,705
Bad and doubtful debts
90,091 69,627 Departure tax commission
114,237 39,411
Depreciation
11 3,044,229 2,791,733 Directors fees
15 42,159 23,500
Interest on loans
232,688 231,116 Loss on Sale of Fixed Assets
- 352,864
Operating expenses
8,436,713 7,299,449
11,985,849 10,827,406
Profit for the year
1,102,380 (1,342,824) Accumulated losses brought forward
(46,818,188) (45,475,364)
Accumulated losses carried forward
(45,715,808) (46,818,188)
The relevant notes on pages 5 to 12 form part of and are to be read in conjunction with this income statement.
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SAMOA AIRPORT AUTHORITY
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013
Contributed
Assets
Accumulated
Total
Capital
Revaluation
Profit/Loss)
Opening balance as at 1st July 2011 93,451,084
7,372,697
(45,475,364)
55,348,417
Net loss for the year (restated)
(1,342,824)
(1,342,824)
Balance at 30th June 2012
93,451,084
7,372,697
(46,818,188)
54,005,593
Net profit for the year
___________
_________
1,102,380
1,102,380
Balance at 30th June 2013
93,451,084
7,372,697
(46,715,808)
55,107,973
The accompany notes form part of this Statement of Changes in Equity.
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SAMOA AIRPORT AUTHORITY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013
2013 2012
Notes $ $
CURRENT ASSETS Cash on hand and at bank
1,308,616 2,606,940
Term deposits
3 1,387,395 1,343,901 Trade debtors
4 1,481,109 866,203
Other debtors and prepayments
5 443,946 183,691 Inventories
7 155,535 129,556
Total current assets
4,776,601 5,130,291
NON-CURRENT ASSETS Property, plant and equipment
11 51,566,590 51,334,224 Investment
14 2,939,000 2,204,000
Total non-current assets
54,505,590 53,538,224
TOTAL ASSETS
59,282,191 58,668,515
CURRENT LIABILITIES Creditors
175,497 146,968
Other creditors and accruals
6 279,759 584,915 Payable to Treasury department
13 743,235 743,235
Current portion of term loans
9 19,391 19,092 Provision for Annual Leave
200,028 451,301
Related party payables
16 367,500 -
1,785,410 1,945,512
NON-CURRENT LIABILITIES Term loans
9 2,064,627 2,073,630
Deferred income
10 324,181 643,781 Total non-current liabilities
2,388,808 2,717,411
TOTAL LIABILITIES
4,174,218 4,662,923
NET ASSETS
$55,107,973 $24,436,183
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CAPITAL AND RESERVE
Government contribution
2 93,451,084 93,451,084 Asset revaluation reserve
11 7,372,697 7,372,697
Accumulated losses (Restated)
(45,715,808)
(46,818,188)
$55,107,973 $54,005,593
The relevant notes on pages 5 to 12 form part of and are to be read in conjunction with this statement of financial position. On behalf of the Board:
Chairman ……………………………
Director ……………..................
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SAMOA AIRPORT AUTHORITY
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013
2013
2012
$
$
CASH FLOW FROM/(TO) OPERATING ACTIVITIES Cash received from customers
11,818,177
9,079,719
Cash paid to suppliers, expenses and wages (9,262,811)
(8,945,455)
Net cash flows from operating activities
2,555,366
134,264
CASH FLOW FROM/(TO) INVESTING ACTIVITIES Payments for purchases of property, plant and equipment (3,276,595)
(1,713,322)
Interest received on term deposits and ANZ current account 75,290
57,007
Proceeds from sale of property, plant and equipment -
64,586
Purchase of shares for Aggies
(367,500)
-
Net cash flows used in investing activities
(3,568,805)
(1,591,729)
CASH FLOW FROM/(TO) FINANCING ACTIVITIES Term loan repayments - NPF
(241,392)
(248,348)
Net cash flows used in investing activities
(241,392)
(248,348)
NET (DECREASE) IN CASH
(1,254,830)
(1,705,813)
Opening cash brought forward
3,950,841
5,656,654
ENDING CASH CARRIED FORWARD
2,696,011
3,950,841
Represented by: Cash on hand and at banks
1,308,616
2,606,940
Term deposits
1,387,395
1,343,901
2,696,011
3,950,841
-
The relevant notes on pages 5 to 12 form part of and are to be read in conjunction with this statement of cash flows.
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SAMOA AIRPORT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2013
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES STATEMENT OF COMPLIANCE
The financial statements have been prepared in accordance with the requirement of the International Financial Reporting Standards adopted by the International Accounting Standards Board (IASB), and interpretations issued by the Standing Interpretations Committee of the IASB. BASIS OF PREPARATION
The accounts have been prepared on the basis of historical costs. The accounting policies have been consistently applied by the Authority. These financial statements are presented in Samoan Tala (SAT). PARTICULAR ACCOUNTING POLICIES
The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied.
a) Foreign currency Transactions in foreign currency are translated to Tala at the foreign exchange rates ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at balance date are translated to Tala at exchange rates ruling at that date Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rates ruling at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to Tala at the exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognized in the income statement. b) Property, plant and equipment
(i) Owned assets Items of property, plant and equipment are stated at cost less accumulated depreciation.
Property that is being constructed or developed for future use is classified as work in progress under property, plant and equipment and stated at cost.
Where an item of property, plant and equipment comprises major components having different useful lives, they are accounted for as separate items of property, plant and equipment.
(ii) Depreciation
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. The rates at which depreciation is charged are as follows:
Building 10 – 40 years
Runway, taxiways and aprons 20 years
10 - 40 years Plant and equipment 5 – 10 years
20 years
Motor vehicles 5 years
5 - 10 years Fences 10 years
5 years
Furniture and fittings 5 years
10 years Intangible 3 – 5 years
5 years
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c) Trade receivables Trade and other debtors are stated at their cost less impairment losses. The carrying amount of these assets is
reviewed at each balance date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated at balance date. An impairment loss (doubtful debts) is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. All impairment losses are recognized in the income statement. The recoverable amount of trade receivables is the estimated future cash flows expected from the asset.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
d) Inventories Stocks are stated at the lower of cost and net realizable value.
The cost of inventories is based on the first-in first-out principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition.
e) Cash and cash equivalents
Cash and cash equivalents comprise of cash balances. Bank overdrafts that are repayable on demand and form an integral part of the Authority's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.
f) Loans payable Loans payable are measured on initial recognition at the amount of the net proceeds
g) Provisions
A provision is recognized in the statement of financial position when the Authority has a present legal or constructive obligation as a result of past event, and it is probable that an outflow of economic benefits will be required to settle the obligation
h) Accounts payable Trade and other payables are recognized at cost.
i) Revenue
Revenue from departure taxes, duty free levies, landing fees, oil levies, parking fees, and rentals are recognized in the income statement on an accrual basis. Revenue from the rendering of services is recognized in the income statement when the significant risks and rewards of ownership have been transferred to the guest or customer. No revenue is recognized if there are significant uncertainties regarding recovery of the consideration due or the associated costs.
j) Expenses Salaries & Wages
Comprises of wages and salaries, bonuses, and leave payments paid to staff as well as the Authority's contribution of SNPF and ACC as required by law are recognized in the income statement.
Interest expense Interests on loan and overdraft accounts are recognized in the income statement.
Directors' fees and board expenses
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Annual fees for directors are taken up as Directors' fees, whereas sitting allowances and other costs incurred during board meetings, or relating to directors, are classified as board expenses.
k) Value added goods and services tax
Revenues, expenses, liabilities and assets are recognized net of the amount of value added goods and services tax (VAGST), except for receivables and payables which are recognized inclusive of VAGST. Where VAGST is not recoverable as an input tax it is recognized as part of the related asset or expenses.
l) Income tax The Authority is not subject to taxation
m) Changes in accounting policies
There have been no significant changes in accounting policies during the year.
n) Comparative information Comparative information has been restated where necessary to achieve consistency in disclosure with current financial
year amounts.
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SAMOA AIRPORT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2013
2013
2012
$
$
2. CAPITAL - GOVERNMENT CONTRIBUTIONS Assets transferred to the Authority
53,567,663
53,567,663
Government contribution to the upgrading of Faleolo airport 9.132.633
9,132,633
Government contribution to the upgrading of Faleolo airport 30,750,788
30,750,788
(loan capitalisation)
93,451,084
93,451,084
The government through cabinet directive has approved the additional capitalisation on the 4th
April 2012, as per F.K. (12) 14 of the Authority’s term loan at
30th
June 2011, amounting #30,780,788.09. The capitalisation has increased government contribution from $62,700,296 to $93,451,084.09.
3. TERM DEPOSITS ANZ Bank (Samoa) Limited
576,299
560,877
Westpac Bank Samoa Limited
426,567
410,907
Samoa Commercial Bank
384,527
372,117
1,387,393
1,343,901
The term deposits with the ANZ Bank (Samoa) Limited, Westpac Bank Samoa Limited and Samoa Commercial Bank are invested for a period of twelve months. The interest rates are 2.75%, 3.25% and 5% respectively per annum. The term deposits with the ANZ Bank (Samoa) Limited and Westpac Bank Samoa Limited are pledged as security for the overdraft facilities. The Authority also established two additional investments with the Samoa Commercial Bank for a period of twelve months. The interest rates are 3.75% and 5% respectively per annum.
4. TRADE DEBTORS Total debtors
1,641,684
1,028,028
Provision for doubtful debts
(160,575)
(161,825)
Net debtors
1,481,109
866,203
Movements in the provision for doubtful debts were as follows: Balance at beginning of the year
161,825
92,198
Charged to income statement
-
69,627
Write off against provision
(1,250)
-
Balance at year end
160,575
161,825
5. OTHER DEBTORS AND PREPAYMENTS
Staff advances
29,763
18,870
Provision for doubtful debts
(14,734)
(14,734)
15,029
4,137
VAGST receivable
156,490
-
Prepayments and others
276,270
179,554
Provision for doubtful debts – other debtors
(3,843)
-
443,946
183.691
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Movement in provision:
Balance at beginning of the year
14,734
14,734
Charged to income statement
-
-
Write off against provision
-
-
Balance at year end
14,734
14,734
2013
2012
$
$
6. OTHER CREDITORS AND ACCRUALS Audit fees
49,922
54,522
Salaries and wages
142,858
178,401
VAGST payable
_
269,473
Other creditors
86,979
82,250
279,759
584,916
7. INVENTORIES Inventories represents supplies for the Airport operations.
Supplies for Rescue Fire and Services
40,823
89,104
Supplies for Technical Department
70,080
23,979
Other supplies
44,632
18,730
155,535
131,813
8. BANK OVERDRAFT
The Authority has cancelled overdraft facilities with ANZ Bank (Samoa) Limited and the Westpac Bank Samoa Limited. These overdraft facilities are used to be secured by the term deposits.
9. LONG TERM LOANS
2013
Current
Term
Total
-
Samoa National Provident Fund 19,391
2,064,627
2,084,018
$19,391
$2,064,627
$2,084,018
2012
Samoa National Provident Fund 19,092
2,073,630
2,092,722
$19,092
$2,073,630
$2,092,722
The term loan with Samoa National Provident Fund was fully drawdown in October 2004 and is secured by 30 acres of land at Faleolo Parcel 782 and Chattel over Instrument Landing system. Interest is charged at 11% per annum for a term of 20 years and the current loan repayment is $26,696 per month. (Previously $62,087 per quarter).
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SAMOA AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2013
2013
2012
$
$
10. DEFERRED INCOME Opening
balance
963,381
1,284,231
Additions
-
- less: Amortization for the year
(319,600)
(320,850)
Ending balance
643,781
963,381
Deferred income represents telecom equipment donated by the European Union in March 2003. These assets have estimated useful life of ten years and are depreciated using the straight line method. Deferred income is amortized on a basis consistent with the useful life of the assets.
11. PROPERTY, PLANT AND EQUIPMENT
Runway,
taxiway Plant & Motor
Furniture
Land Buildings &apron equipment vehicles Fences Intangible & Fittings
TOTAL
COST $ $ $ $ $ $
$
$
30 June 2011 13,117,228 26,480,249 39,950,998 23,306,148 1,140,840 1,066,063 124,838 573,410
105,759,774 Revaluation
reserve 7,372,697
7,372,697
Additions - 566,170 67,250 972,992 183,227.83 - - 174,367 - 1,964,007
Disposals - - - (615,706) - - - -
(615,706)
At 30 June 2012 20,489,925 27,046,419 40,018,248 23,663,434 1,324,068 1,066,063 124,838 747,777
114,480,772
Accumulated depreciation
and impairment
30 June 2011 - 10,592,918 30,961,042 17,047,481 555,412 895,858 2,689 562,256
60,617,656 Annual
depreciation - 639,464 913,105 995,994 176,692 31,774 24,968 9,735
2,791,732
Disposals
- - (262,842) - - - -
(262,842)
At 30 June 2012 - 11,232,382 31,874,147 17,780,633 732,104 927,632 27,657 571,991
63,146,546
Carrying amount
30 June 2011 20,489,925 15,887,331 8,989,956 6,258,667 585,428 170,205 122,149 11,154
52,514,815
At 30 June 2012 20,489,925 15,814,037 8,144,101 5,882,801 591,964 138,431 97,181 175,786
51,334,224
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ASSET REVALUATION RESERVE
The Airport Authority land revaluation was carried out by the Department of Lands and Survey, a licensed public valuer in December 2003. The revaluation was intended to put a value on the Authority's 50 acres shares with Aggie Grey's Beach Resort Samoa Limited.
Balance at year end
$ 7,372,697
$ 7,372,697
12. PAYABLE TO THE MINISTRY OF FINANCE
Balance at year end
$ 743,235
$ 743,235
The amounts represent undisbursed funds from the World Bank for expenditures paid by the Ministry of Finance (formerly Treasury Department) towards the infrastructure Asset Management Project. (Airport Authority)
SAMOA AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2012
$
$
13. OPERATING INCOME Departure tax
4,855,172
4,794,947
Landing fees
2,648,967
2,788,416
Other operating income
1,609,328 # 1,555,374 14. INVESTMENTS WITH AGGIE GREY'S BEACH RESORT SAMOA LIMITED
AND OCEANIA AVIATION SAMOA LIMITED
In 2003, the Authority acquired 1.5million shares from the newly established Aggie Grey's Beach Resort Samoa Limited at a par value of $1.00 per share. The additional shares were acquired in December 2006 in exchange for 7 acres of land , to the new value of $2 Million tala.
In 2010, the Authority acquired 76,500 ordinary shares from its newly joint venture with Oceania Aviation Samoa
Limited at a par value of $1 AUD per value. The shares are valued at Two Hundred & Four thousand tala ($204,000) .
15. RELATED PARTY TRANSACTIONS Compensation of key management personnel: Remuneration of key management staff
602,000 # 602,000
Directors fees and allowances
27,625
99,159
The remuneration of key management personnel are determined by Cabinet and the Board. Key management personnel include the CEO, Assistant CEO, Manager Corporate Services, Internal Audit, Works & Technical, Aerodromes, Air Traffic & Rescue Fire Services.
16. CONTINGENT LIABILITIES The Authority has completed a review of the VAGST assessment issued by the Ministry for Revenue on the
13 September 2010 regarding its VAGST returns from January 1996 to April 2009, imposing a VAGST payable of $507,518.75. This has now been resolved with the Ministry and the Authority is to settle the full amount.
17. CAPITAL COMMITMENTS The directors and management are not aware of any capital commitments at year end (2012: Nil)
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18. SUBSEQUENT EVENTS
The government through cabinet directive has approved the additional capitalisation on the 4th April 2012, as per F.K.(12)14 of the Authority's term loan at 30 June 2011 amounting $30,750,788.09. The capitalisation will increase government contribution from $62,700,296 to $93,451,084.09. In addition , the current ratio will also improve from 0.53:1 to 2.81:1 for the year ending 30 June 2012 and the decrease in external funding will result in the debt to equity ratio change from 41% to 92%. The directors and management are not aware of any other matters or circumstances not otherwise dealt with in the financial statements that have significantly or may significantly affect the operations of the Authority. 19. General
The Authority was established under the Airport Authority Act 1984 and commenced operation in 1986. The Authority's main functions are to establish, improve, maintain, operate and manage aerodromes and service all facilities in connection with the operation of any aerodromes or with the operation of any aircraft engaged in civil aviation.
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SAMOA AIRPORT AUTHORITY
SUPPLEMENTARY INFORMATION NOT REQUIRED
FOR STATUTORY PURPOSES
FOR THE YEAR ENDED 30 JUNE 2013
2012
2011
$
$
INCOME
Departure tax - Faleolo airport
4,855,172
4,794,947
Landing fees
2,648,967
2,788,416
Duty free levies
3,341
41,357
Miscellaneous
114,988
88,885
Parking fees - Aircraft
58,330
82,520
Parking fees - Motor vehicle
205,526
224,230
Oil levies
120,813
140,543
Rental
448,115
357,894
Electricity recovery
198,651
188,745
Fuel & water recovery
80,176
69,749
VIP operations
51,700
39,400
Ground Handling
12,000
12,000
ATS & Security Services - Fagalii 67,338
61,703
Airspace Income
248,348
248,348
Total operating income
9,113,467
9,138,737
Interest on term deposits
51,515
58,112
Defer income amortisation
319,600
320,850
Dividend income
-
-
Gain on disposal of fixed assets
-
-
Total income
9,484,581
9,517,699
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SAMOA AIRPORT AUTHORITY
SUPPLEMENTARY INFORMATION NOT REQUIRED
FOR STATUTORY PURPOSES
FOR THE YEAR ENDED 30 JUNE 2013
2013
2012
$
$
EXPENSES
Advertising
6,834
8,931
Bank charges
3,754
2,785
Board expenses
27,273
60,623
Civil aviation charges
1,537
36,947
Donation
28,858
66,137
Electricity
1,031,214
1,099,099
Fuel
387,955
294,640
General expenses
29,712
28,629
Insurance
386,312
331,386
Registration & Licensing
19,110
19,894.00
Loose tools
3,676
445
Maintenance of aerodromes
105,125
78,378
Ministerial Expenses
7,770
14,263.00
Office expenses
16,162
14,204
Over-provision depreciation expense
-
Printing and stationery
91,278
60,476
Professional fees
167,248
86,846
Repairs and maintenance - buildings
79,149
42,363
Repairs and maintenance - equipment
53,611
55,970
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Repairs and maintenance - Furniture & Fittings 87
43
Repairs and maintenance - motor vehicle
41,652
83,694
Safety gear
13,008
8,346
Salaries and wages
4,295,362
4,428,064
Supplies
159,506
139,367
Telephone, faxes and postage
88,412
85,400
Training
9,196
36,652
Travel
67,253
190,524
Uniforms
38,754
500.00
Vehicle running expenses
24,720
28,050
Water rates
104,124
11,457
Waste disposal
10,800
3,600
Total operating expenses
7,299,449
7,317,713
Audit fee
19,705
19,705
Bad and doubtful debts
69,627
(12,679)
Departure tax commission
39,411
40,361
Depreciation
2,791,733
2,770,862
Directors fees
23,500
27,625
Interest on loan
231,116
1,321,843
Loss on Sale of Fixed Assets
352,864
64,546
10,827,406
- 11,485,430
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