2001 Annual Report

C O A S T A L V I L L A G E S R E G I O N F U N D

2001 Annual Report

C O A S T A L

V I L L A G13E S

R E G I O N

F U N D

G

R

O

C O A S TA L

W

T

H

V I L L A G E S

R E G I O N

F U N D

2001 Annual Report

SCAMMON BAY CHEVAK

HOOPER BAY

NEWTOK NAPAKIAK OSCARVILLE NAPASKIAK NIGHTMUTE TOKSOOK TUNTUTULIAK BAY EEK CHEVORNAK KONGIGANAK KIPNUK KWIGILLINGOK QUINHAGAK

TUNUNAK MEKORYUK

GOODNEWS BAY PLATINUM

T A B L E

O F

Letter from the President Executive Director’s Message Quarterly Highlights Developing Leaders The Near Future Continuous Improvement CVRF Subsidiaries Financial Overview Board of Directors Officers and Directors

C O N T E N T S 2 3 4 6 10 12 14 16 17 18

M I S S I O N

S T A T E M E N T

Purpose To be successful in the fishing industry so that we can promote economic development in the CVRF Region.

Core Values From our history to date, and from the commitments that we all share now about the future, we have defined the values that should guide all of our activities and staff in the years to come. They are listed in order of importance: • Maximum return on allocation • Positive leadership • Respect for and support of the people in our Region • Teamwork • Protecting our way of life Our Vision Become a key player in the Bering Sea Fisheries and human resource development so there is sustainable economic and commercial development of the local resources in the CVRF Region.

Coastal Villages Region Fund is a Community Development Quota (CDQ) organization with 20 member communities from Scammon Bay to Platinum.

CVRF’s fisheries resources, which are allocated by the Magnuson-Stevens Act, are a share of the rich Bering Sea fishery.

C O A S T A L

V I L L A G 1E S

R E G I O N

F U N D

L

E

T

T

E

R

F

R

O

M

T

H

E

P

R

E

S

I

D

E

N

T

In my first full year as president of Coastal Villages Region Fund (CVRF), I have seen so many things that make me proud I cannot fit them all into this Annual Report. I offer these points to show just a few examples of the source of my pride.

Changes in allowable investments From my home in Toksook Bay, I get a first hand view of the CDQ halibut fishery and the plant operated by Coastal Villages Seafoods, a wholly owned subsidiary of CVRF. I am satisfied with what CVRF has done in its communities in this small boat fishery, but I can see the ability to do more.

Our basic goal is to provide benefits to our member communities. There are two important ingredients needed for CVRF to provide those benefits. The first is the resource. I have witnessed the enormous growth in the financial resources that CVRF has earned and I am happy to be able to present that resource on behalf of our twenty member communities. Sound investments and a balanced portfolio dependent on the Bering Sea tie our future to the Bering Sea. That is the intention of the program.

The second important ingredient is the regulatory flexibility to fund projects that will benefit communities. I have worked toward the relaxation of fishery-related limitations on our initiatives and projects in our communities by traveling to Washington D.C. and Kodiak to testify before a House Subcommittee and the North Pacific Council. We have succeeded in achieving that flexibility. As we speak, NMFS rule-making is preparing rules that will allow for in-region non-fisheries related economic development equal to 20% of pollock royalties each year. This is very exciting to our communities because the “Ciunerkam Tangruaritii” (CT) Looking Towards the Future process has indicated that the CDQ can also provide benefits outside the strict fisheries-related avenue.

Leadership Under our milestone called “Continuous Improvement,” I have seen the Board proceed with its development as the company grows, and I like what I see. I have lead this company as President by example, not by rule, and the results are that CVRF approaches perfect attendance, zero tardiness, open and broad participation, and community based discussion. The concerns of our communities are effectively brought to the board through our governance process. Our board members are the company’s best outreach.

Cooperation On behalf of the CVRF full Board of Directors, we remain committed to working with the administration of CVRF to drive this company into the next phase of benefits to our communities from the CDQ program. 2001 has been a tremendously successful year; the sky is the limit for 2002 and beyond.

Sincerely,

Simeon John President

C O A S T A L

V I L L A G 2E S

R E G I O N

F U N D

E

X

E

C

U

T

I

V

E

D

I

R

E

C

T

O

R

’

S

M

E

S

S

A

G

E

Coastal Villages Region Fund has progressed on many levels over the last year, but one development that I am particularly pleased with is the progress toward our goal of becoming a major player in the Bering Sea. With our expansion in investments during the last year, we can now adjust our focus to the real bottom line, benefits to our member communities.

Our ties to the Bering Sea provide us with the financial resources to deliver projects, employment, and programs to our communities.

When the Bering Sea fishery resources are abundant and the markets are strong, our company is positioned to take a substantial part in the opportunity that such a combination provides for the communities that we represent. Opportunities for projects and programs outside of strict fisheries-related economic development will be the next phase of benefits to our member communities. Now more than ever, the CDQ program has connected the enterprise and industry of the Bering Sea with the communities in our region.

CVRF had an outstanding year in 2001, nearly doubling its net worth from 2000. Royalty and investment revenues have grown considerably, stabilizing the delivery of programs and projects. Emphasis has been placed on outreach to the 20 member communities, allowing CVRF to focus on the programs and projects that directly benefit the region. In addition to the 4-SITE programs, CVRF also offered residents the opportunity to participate in the loan, tax, and permit assistance programs, and conducted salmon and halibut processing operations entirely in-region. The direct and tangible cash benefit to the region has begun to create a multiplier effect which CVRF hopes will benefit residents for years to come.

As we look ahead to 2002, many new and exciting projects are on the horizon. Residents of Kipnuk and Hooper Bay are currently watching the construction of new halibut processing plants in their communities. To compliment these and the other existing plants, CVRF continues to provide fishermen with financial opportunity through our loan program so that they can efficiently harvest the 4E and 4D quota, the spring run of herring, and the summer’s salmon run. Capital expenditures to improve existing plants are being made just as start-up dollars and operation expense contributions are made to salmon processing facilities. The herring roe recovery bonus program will provide improved service to the districts along the entire coast of our region. Now our tax assistance program will expand to every community in the CVRF region along with our 4-SITE group of programs. All of these activities are fishery related. With our foot-hold in the Bering Sea, they are also sustainable given constant cost/benefit analysis.

An additional opportunity to look forward to in 2002 involves the North Pacific Fishery Management Council’s CDQ Policy Analysis process, and resulting changes to current restrictions on investments. This relaxation of restriction on investment by CDQ groups promises to allow for up to 20% of the pollock harvesting royalty to be invested in non-fishery related economic development each year. Our community development staff is currently busy working on this fresh approach to increasing productivity and per capita income by incorporating all of the experience this company has acquired.

Coastal Villages has had an incredible experience over the last ten years, and continues to add to that experience. We must also add to these experiences the mistakes we have made so that as we move forward, building on the wealth in the Bering Sea, we don’t overlook lessons already painfully learned. We have become a major player in the Bering Sea. We must preserve our place for the benefit of our member communities.

C. Morgen Crow Executive Director

C O A S T A L

V I L L A G 3E S

R E G I O N

F U N D

Q

U

A

1 st F I R S T

R

T

E

R

L Y

H

I

G

H

L

QUA RT E R

I

G

H

T

S

2nd

S E C O N D

• Coastal Villages Pollock received its first cash distribution from American Seafoods, LP. • Pollock “A” Season was completed with better than forecasted fishing success.

• Coastal Villages Seafoods received grants from U.S. Department of Agriculture and Community Development Block Grant to upgrade its Quinhagak Salmon facilities.

• Coastal Villages Seafoods sent salmon crew members to Indian Valley International for two training sessions to prepare for the 2001 season.

• Coastal Villages Region Fund began implementation of a loan program, taking the place of the AVCP Revolving Loan Fund.

C O A S T A L

QUA RT E R

• Simeon John, Toksook Bay, accepted the office of CVRF Board President.

• In its first month of operations, CVS processed 357,000 pounds of salmon and 64,348 pounds of halibut in five village plants, contributing over $200,000 to the local economy through crew wages and fisherman payments.

• The 2000 Annual Report “A Statement of Strength” was well received by member villages, government agencies and by the industry.

• The second Annual Board Retreat revisited and confirmed CVRF’s vision, mission and strategic plan for the next five years.

V I L L A G 4E S

R E G I O N

F U N D

3 rd T H I R D

QUA RT E R

4th

F O U RT H

• Eight Community Liaisons were hired to assist with the new service programs for region communities.

• CVS, LLC purchased over 1.5 million pounds salmon from the fisherman of our communities and employed nearly 350 employees from our region during the course of the summer processing season.

• CVRF Fishermen completed harvest of the Area 4E halibut quota for the second consecutive year.

• Major improvements were completed to processing plants in Quinhagak and Toksook Bay.

C O A S T A L

QUA RT E R

• CVS began planning for construction of two halibut plants in Kipnuk and Hooper Bay, and worked on several grants to help fund the new projects.

• CVRF held its annual meeting in November, electing a new Executive Committee.

• Five communities of the region held elections for Board seats. As a result of these elections, four new Board Members were elected to the CVRF Board.

• The CVRF Loan Committee authorized a total of eleven loans for fishermen of the region.

• The CVRF Scholarship Committee approved twenty-one scholarships for the 2002 Spring semester.

• CVS began implementation of an incentive-pricing herring program to bring more value to the region’s herring fishermen.

• In December, CVS paid fishermen a ten percent bonus on their total gross fish sales.

• CVRF helped local fishermen purchase 177,302 units of halibut IFQ’s.

• CVRF Rural Recruiters visited all twenty CVRF Region communities to advertise and solicit applications for the seafood industry.

V I L L A G 5E S

R E G I O N

F U N D

D E V E L O P I N G

L E A D E R S

4-SITE PROGRAMS The CVRF 4-Site Programs provide community residents opportunities for scholarships, internships, training and employment: Scholarships The Louis Bunyan Memorial Scholarship (LBMS) program awarded $104,271 to forty-one CVRF residents for higher education or vocational training in the year 2001. With the expansion of the LBMS program to assist individuals who want to achieve their GED through the Kuskokwim Community College, the LBMS awarded $297 to one individual in 2001.

Individuals that were awarded scholarships in 2001 came from the communities of Chevak, Mekoryuk, Kipnuk, Hooper Bay, Kongiganak, Tuntutuliak, Kwigillingok, Napaskiak, Scammon Bay, Newtok, and Quinhagak. Some examples of their studies include welding, culinary arts, rural development, accounting, business administration, education, medical assistant, nursing, biology, air traffic control, commercial pilot, pilot instructor, technology, psychology, auto technology, diesel technology, computer science, mechanical engineering and civil engineering.

Coastal Villages encourages residents of the CVRF member communities to take advantage of the LBMS program for the opportunity to develop and enhance their education.

Internship Since the inception of the CDQ program, Coastal Villages has provided internship opportunities within the fishing industry corporate offices to various CVRF residents. The objective of the CVRF internship program is to offer individuals the opportunity to gain corporate work skills within the fishing industry. The various types of internships offered within CVRF and its industry partners include Administrative Assistant, Accounting, Fleet Operations, Information Technology, Human Resources and Travel.

C O A S T A L

V I L L A G 6E S

R E G I O N

F U N D

In 2001, Coastal Villages worked with an individual from Kongiganak who graduated from Job Corps that had both an Administrative Assistant and an Accounting Clerk internship at CVRF’s Anchorage Office. After the completion of her six-month internship, she was offered full time employment with CVRF. Coastal Villages also sent one individual from Napaskiak to American Seafoods’ corporate office in Seattle for a one-month internship as a Rural Recruiter. After the completion of her internship, she was offered a full time position in her home town.

Training Coastal Villages believes in investing in the residents of CVRF’s member communities. Coastal Villages Seafoods, LLC brought 28 residents to Indian Valley International in preparation for the 2001 salmon and halibut season. The students were trained in proper food handling, use of automated processing equipment, refrigeration, quality control, inventory tracking, machine equipment operation and fillet production. Coastal Villages also trained twelve key crew members of Coastal Villages Seafoods in business plan development, operations management, and refrigeration.

Employment Coastal Villages Seafoods, a subsidiary of CVRF, employed 342 full-time and seasonal employees in 2001, providing incomes totaling over $1 million. CVS purchased seafood from 364 fishermen in the region. Fishermen shared more than $700,000 in income from fishing.

The year in review brought an increase in employment opportunities and wages to CVRF member residents. In 2001, CVRF created opportunity for 812 individuals throughout the fishing industry, with positions at Coastal Villages Region Fund, Coastal Villages Seafoods, American Seafoods, Icicle Seafoods, Westward Seafoods, the Ocean Harvester, Silver Spray, and the Prowler Fisheries. Wages that were brought to the region through CVRF’s employment program exceed $1.5 million in 2001.

C O A S T A L

V I L L A G 7E S

R E G I O N

F U N D

D E V E L O P I N G

L E A D E R S

SUPPORT SERVICE PROGRAMS Junior Achievement (JA) The purpose of JA is to educate and inspire young people to value self-sufficiency by using business and economics to improve the quality of their lives. Junior Achievement programs are designed to compliment existing school curriculum.

Rural Education Adult Development (READ) The READ Program was constructed in response to a need for General Education Diplomas within the CVRF Region. The program is designed to improve the accessibility of adult basic education services and to raise literacy, while increasing the number of village residents with a GED. In 2001, 19 graduates from our member communities received their GED’s.

Coastal Villages Youth Leadership Project (CVYLP) CVYLP’s purpose is to promote leadership, personal development and citizenship by building strong, unified and self-reliant communities through informed and actively participating youth. Currently, there are six youth councils, with more anticipated forming in the near future.

C O A S T A L

V I L L A G 8E S

R E G I O N

F U N D

OTHER PROGRAMS Loan Program The purpose of the loan program is to allow individual fishermen the opportunity to borrow up to $25,000 to purchase equipment and gear in order to participate in the commercial fisheries. In 2001, over $289,000 in loans were authorized to member community residents.

Tax and Permit Assistance Program CVRF supports the Alaska Business Development Center Volunteer Tax and Loan Assistance Program. By providing professional volunteer income tax filing assistance to residents that have no such access to services in the region, the program has proven very beneficial to our community residents. In 2001, over $763,715 in tax refunds were returned to our community residents. The program also works with fishermen to obtain commercial fishing permits so that the permits remain in the region and retain the economic opportunity.

Apprenticeship CVRF’s Apprenticeship Program is a great opportunity to gain vocational skills while on the job. In 2001, two individuals from Tununak took advantage of an engineering apprenticeship with Icicle Seafoods in Petersburg where they learned various mechanical skills and earned money at the same time. CVRF’s apprenticeship program offers individuals the chance to gain technical work skills while on the job. An apprencticeship within CVRF or its industry partners may include engineering, deck hand, quality assurance, culinary arts, or housekeeping. An apprentice is normally placed on a fishing vessel or on-shore plant operation.

Infrastructure Coastal Villages Seafoods operated seafood buying and processing facilities in five villages: Quinhagak, Mekoryuk, Chefornak, Toksook Bay and Tununak. Two other facilities will be under construction in Kipnuk and Hooper Bay in 2002, and are expected to be fully operational by next season.

C O A S T A L

V I L L A G 9E S

R E G I O N

F U N D

T

H

E

N

E

A

R

F

U

T

U

R

E

NEW PROGRAMS FOR CVRF Increased involvement in the offshore fisheries will provide CVRF with even more employment and training opportunities. By acquiring or expanding our ownership in various sectors, it will further the growth of CVRF and help build a company for the future. Following is a list of some of the new programs planned to be implemented by CVRF. Infrastructure Development Program The major thrust of the infrastructure development program has followed the voice of the region, aiming towards providing region residents a viable option to stay within the community in which they live while developing stable financial environments for themselves and their families. •

CVRF proposes to assist local communities with early spring fuel deliveries and/or reserves to ensure that local fishermen will have the necessary fuel at reasonable prices for fishing activities at the start of the season. Through this process, Coastal Villages will gain information to evaluate the current local fuel markets and investigate retail fuel opportunities in the region.

•

The Test Fisheries program will investigate getting involved in new fisheries and opening current fishery plants (salmon, halibut, and herring) in new locations within the region.

•

The third project within this program, Commercial Fisheries Support, is aimed at providing technical and financial resources to support CVRF member commercial fisheries businesses in-region.

Fisheries Development and Support The Fisheries Development and Support Program has been designed to provide support for the fishermen and the means for them to upgrade and build their fishing operations. The ability to continue to improve fishing techniques will also continue to improve the value of the fisheries.

C O A S T A L

V I L L A G10E S

R E G I O N

F U N D

•

Marine Safety Program: With the increase of participation in the commercial fisheries, it became apparent that there is a strong need for marine safety within the region. CVRF proposes to implement a marine safety program that will provide training and awareness aimed at implementing safeguards and preventing marine accidents. CVRF will develop materials, such as safety packets and/or brochures, to distribute to community residents illustrating safety procedures. Additionally, CVRF will assist local fishermen, through the loan program or fishermen advances, to purchase safety equipment for their fishing vessels.

•

Project Management Program: In response to requests for assistance from the communities, CVRF proposes to implement a project management program to provide technical assistance to the communities of the region, such as grant preparation and planning for community projects, to develop the capital and human infrastructure of the communities.

•

Insurance Cooperative: As the cost of marine insurance is exceedingly high, especially for small-vessel fishermen on the Bering Sea, CVRF proposes to help fishermen find affordable marine insurance by creating a cooperative of insurance applicants sponsored by CVRF. This program will not only benefit the fishermen by providing them with lower insurance costs, but will benefit CVRF’s loan program by ensuring that loan recipients are carrying insurance on the vessels under lien with CVRF.

CVRF Development Program The CVRF Development Program activities focus on building an organizational culture based on four cornerstone ideas: challenge the process, inspire a shared vision, model the way, and collaborate with the member villages. The operating philosophy is grounded in continuous improvement, which includes on-going efforts to critically review performance and functions. As part of this project, at nearly every CVRF Board meeting, a portion of the agenda involves training programs intended to improve board performance. On the management level, it includes reviewing the company’s programs, continuing those that meet the mission, and dropping those that are useful to do, but that are better left to others. As a result of the continuous improvement process, both the CVRF Board and the staff continue to grow and improve, bringing the company along with them.

C O A S T A L

V I L L A G11E S

R E G I O N

F U N D

C O N T I N U O U S

I M P R O V E M E N T

STAFF DEVELOPMENT Teamwork is the vital component needed to deliver positive programs and results to the communities served by CVRF. CVRF Board and management understand that in order for the programs and services to thrive, this attribute must be developed and nurtured.

The initiation of the staff development process came with the concept of an organization-wide process of continuous improvement, at the Board level and at the staff level.

This past year brought opportunity for a training program aimed at building camaraderie and teamwork among this key group of talented individuals, the staff of CVRF. The 2001 Retreat focused on encouraging and nurturing this trait in the CVRF family. This event concentrated on activities aimed at promoting teamwork and dependence on one another to reach the group’s goal.

The sessions provided the team a chance to educate their co-workers on their functions in the company and how their position has an effect on another’s. Many came away from the training with the knowledge that together we can bring success and resources to the residents of our region.

In CVRF’s on-going pursuit for excellence, the Board of Directors remain committed to ensuring opportunity for continuous improvements and development of this important resource and key element of the company– the staff of CVRF.

C O A S T A L

V I L L A G12E S

R E G I O N

F U N D

BOARD DEVELOPMENT CVRF believes that strong leadership is fundamental to achieving success in this competitive industry. We must succeed in order to bring the maximum return to the twenty communities in the CVRF Region. It is through development of this key ingredient that we can attribute our triumphs. Each year, the Board of Directors participates in a development program. Each day, the board is in a state of continuous improvement.

The 2001 Board Retreat was held in April, with the conclusion of that particular session during the June 2001 Board Meeting. Staff worked very closely with outside facilitator Tim Pearson of Mind Jazz, and Karen Hunt, a retired judge, to develop the program for the training session. During the sessions, the Board engaged in collaboration and communication on the mission and vision of Coastal Villages Region Fund.

The Board also had an opportunity to come together as a team to appraise CVRF’s many significant accomplishments and look towards the future successes for the company and communities. There was a review and reaffirmation by the Board on their role and responsibility to ensuring that the company’s mission is met. The Board renewed their commitment to working for the communities, to be aggressive in its dealings, to be investment-management oriented, and most importantly to focus on accomplishments and core values.

With these strengths in mind, the Board of Directors is well on their way to developing the strong leadership needed to make CVRF a leader in the Bering Sea. The CVRF Board continues to improve upon their leadership, for our future generations’ benefit.

C O A S T A L

V I L L A G13E S

R E G I O N

F U N D

S

U

B

S

I

D

I

A

R

I

E

S

Coastal Villages Angler, LLC (CVA), a wholly owned subsidiary of CVRF, was established in 2000 as a holding company for investments in sport fishing. CVA owns 33.33% of Arolik River Sportfishing, LLC, which owns a fishing lodge in Quinhagak. This investment provides additional opportunity in the region and helps diversify the region from the salmon industry.

Coastal Villages Seafoods, LLC (CVS), a wholly owned subsidiary of CVRF, was established in 1999 to operate fish plants in the region. CVS operates a salmon plant and four halibut plants in Quinhagak, Toksook, Mekoryuk, Tununak and Chefornak. In 2001, plans were made and funding was approved to build two new halibut plants in Hooper Bay and Kipnuk. In addition, plans were also made to implement a herring incentive program for 2002. During 2001, the Quinhagak plant processed all the harvest from the Kuskokwim and Goodnews Bay fisheries. These plants provide employment and training opportunities for members of our community and provide a buyer for the fisherman.

Coastal Villages Groundfish, LLC (CVG), a wholly owned subsidiary of CVRF, was established in 2001 as a holding company for investments in the groundfish sector, including flathead and yellowfin sole. CVG owns 20.09% of Cape Horn Fisheries, LLC, which owns the F/V Cape Horn, a factory trawler that harvests and processes bottom fish. This investment was the first investment by any CDQ group in this sector. The partnership provides employment and training opportunities for members of our community.

Coastal Villages Crab, LLC (CVC), a wholly owned subsidiary of CVRF, was established in 1998 as a holding company for investments in the crab sector.

CVC owns 50% of Silver Spray Seafoods, LLC, which owns the F/V Silver Spray.

The F/V Silver Spray harvests crab and Pacific cod. The partnership provides employment and training opportunities for members of our community.

C O A S T A L

V I L L A G14E S

R E G I O N

F U N D

Coastal Villages Pollock, LLC (CVP), a wholly owned subsidiary of CVRF, was established in 2000 as a holding company for investments in the pollock sector. In 2001, CVP owned 21.883% of American Seafoods, LP, which owns a fleet of pollock catcher/processor vessels and three Pacific cod longlining vessels. Recently CVP increased its ownership in American Seafoods to 30.874%. American Seafoods provides employment and training opportunities for members of our community.

Coastal Villages Longline, LLC (CVL), a wholly owned subsidiary of CVRF, was established in 1997 as a holding company for investments in the Pacific-cod and sable fish sectors. In 2001, CVL owned 20% of Ocean Prowler, LLC, which owns the F/V Ocean Prowler, a longline vessel that harvests mainly Pacific cod, and 45% of Kokopelli Fisheries, LLC, which owns the F/V Ocean Harvester, a longline vessel that harvests mainly sablefish and halibut. Recently CVL acquired 20% ownership in Prowler, LLC, which owns the F/V Prowler and F/V Bering Prowler, longline vessels that harvest Pacific cod. These partnerships provide employment and training opportunities for members of our community.

Coastal Villages Region Fund

Coastal Villages Pollock, LLC

American Seafoods, LP (30.874%)

Pacific Longline Company, LLC (24.7%)

Coastal Villages Crab, LLC

Coastal Villages Longline, LLC

Coastal Villages Seafoods, LLC

Coastal Villages Angler, LLC

Coastal Villages Groundfish, LLC

Arolik River Sportfishing, LLC (33.3%)

Cape Horn Fisheries, LLC (20.09%)

Silver Spray Seafood, LLC (50%)

Prowler, LLC (20%)

C O A S T A L

Kokopelli Fisheries, LLC (45%)

Ocean Prowler, LLC (20%)

V I L L A G15E S

R E G I O N

F U N D

2001 CONSOLIDATED NET ASSETS

F I N A N C I A L

O V E R V I E W

$40,000,000 $35,000,000

Coastal Villages Region Fund (CVRF) has enjoyed strong financial growth over the last several years. CVRF has increased its net assets from $6.7 million in 1998 to $36.7 million in 2001. In 2001 alone CVRF’s corporate net worth increased $16.8 million over the previous year, an 84%increase.

CVRF’s main source of revenue is derived from royalty contracts negotiated with our Bering Sea and Aleutian Islands (BSAI) harvesting partners. These contracts determine the rate harvesters pay to lease the right to fish CVRF’s Community Development Program Quota (CDQ) allocations of pollock, Pacific cod, crab and other species. As CVRF continues to grow in the programs and benefits it delivers to its communities, the company also continues to diversify its investments. In 2000, 73% percent of CVRF’s consolidated revenue came from CDQ royalties. In 2001, revenue from royalties was only 49% of total consolidated revenue, despite the fact that CDQ royalty revenue increased 28% from 2000 to 2001. This indicates that the Company’s strategy to diversify its revenue sources and rely less on CDQ royalty revenue is progressing.

Earnings from equity investments in Bering Sea and Aleutian Islands harvesting and processing operations has increased $8.7 million from the prior year. CVRF has expanded its investments in the Bering Sea from two vessels in 1998 to fourteen vessels in 2001. One of these 12 additional vessels harvests flathead, rock and yellowfin sole. This investment was the first investment in this sector by any CDQ group in the history of the CDQ program.

$30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 1993 1994 1995 1996 1997 1998 1999 2000 2001

Royalties 49%

2001 CONSOLIDATED TOTAL REVENUE

Net Earnings from Equity Investments 44%

Other 2%

Seafood Sales %5

2001 CONSOLIDATED NET EARNINGS FROM EQUITY INVESTMENTS $12,000,000 $10,000,000 $8,000,000 $6,000,000

CVRF’s planned course of action for 2002 is to continue to become a key player in the Bering Sea, and to build a strong company for future generations.

$4,000,000 $2,000,000 $0 -$2,000,000 1997

1998

1999

2000

2001

Pollock 90.50%

2001 CONSOLIDATED ROYALTIES

SableFish 0.12%

Matt Tisher, Director of Finance C O A S T A L

Crab 4.65%

V I L L A G16E S

R E G I O N

F U N D

Mackerel 0.29% Pacific Cod 4.11% Halibut 0.34%

Our strong Board is one of our most valuable assets. Behind our successful organization is a Board that understands its responsibilities and actively supports the missions and goals of Coastal Villages Region Fund.

2001 BOARD OF DIRECTORS

(Left to Right) Front Row: Fritz Willie, Andy Charlie, Henry Williams, Peter Joseph, Johnny Hawk, Peter John. Back row: Helen Kaganak, Wassilie Bavilla, Paul Tulik, Edgar Hoelscher, Simeon John, Tim Samson, Jack Stewart, Ralph Kiunya, Howard Amos. (Not pictured: Fred Phillip, John Pingayak, Oscar Wassillie, Clifford Kaganak, David Bill.)

C O A S T A L

V I L L A G17E S

R E G I O N

F U N D

D I R E C T O R S

O F F I C E R S Simeon John, President Toksook Bay

Wassilie Bavilla, Sergeant at Arms Quinhagak

Howard Amos, Vice-President Mekoryuk

Fred Phillip, At Large Executive Board Kwigillingok

Edgar Hoelscher, Treasurer Hooper Bay

Tim Samson, At Large Executive Board Kipnuk

Aloysius Aguchak Scammon Bay

Johnny Hawk Eek

Andy Charlie Tununak

Paul Tulik Nightmute

Carl Motgin Napakiak

Peter John Newtok

Henry Williams Platinum

Peter Joseph Tuntutuliak

Jack Stewart Goodnews Bay

Ralph Kiunya Kongiganak

John Erik Chefornak

Honorary Director David Bill Toksook Bay

John Pingayak Chevak

Helen Kaganak, Secretary Napaskiak

Historic photos © Jesuit Oregon Province Archives, Gonzaga University.

All other photographs © Coastal Villages Region Fund.

C O A S T A L

V I L L A G18E S

R E G I O N

F U N D

C V R F

S T A F F

Anchorage C. Morgen Crow, Executive Director Matt Tisher, Director of Finance Angie Pinsonneault, Senior Accountant Deborah Vo, Community Dev. Specialist Robert Williams, Quota Manager Selma Davis, HR Management Specialist Janette Maas, Staff Accountant Lynn Wallona, Executive Office Administrator Cheryl Dahl, Accounts Payable Clerk Verla Mojin, Employment Coordinator Haidee Canete, Finance Secretary Catherine Jumbo, Payroll Clerk Janet George, Administrative Assistant Terry Reeve, Senior Advisor, CVS Brian Keffer, Expeditor, CVS Paula Jones, Accounting Clerk, CVS

Chevak Moses Tulim, Community Program Manager Gregory Slats, Jr., Community Program Manager Charlotte Nagayak, Community Liaison Chefornak Clara Ayuluk, Community Liaison Dora Mathew, Plant Manager, CVS Gregory Tom, Assistant Plant Manager, CVS Hooper Bay Bernard Murran, Community Liaison Lester Wilde, Plant Manager, CVS Kipnuk Albert John, Plant Manager, CVS Juneau Norman Cohen, Chief Operating Officer, CVS

Napaskiak Valerie Maxie, Rural Recruiter Franklin Anvil, Community Liaison Toksook Bay Vanessa Lincoln, Community Liaison Nick S. Chanar, Superintendent, CVS Billy Lincoln, Assistant Plant Manager, CVS Mekoryuk Mona David, Community Liaison David David, Plant Manager, CVS Gerald Ernest, Assistant Plant Manager, CVS Quinhagak Kelly Welch, Salmon Operations Manager, CVS Diane Britton, Office Manager, CVS Magdalene Mathew, HR/Recruiter, CVS Tununak Robert Angaiak, Plant Manager, CVS Gregory Angaiak, Assistant Plant Manager, CVS

Corporate Headquarters 711 H Street, Suite 200 Anchorage, AK 99501 907.278.5151 phone 907.278.5150 fax Chevak P.O. Box 109 Chevak, AK 99563 907.858.7250 phone 907.858.7692 fax Mekoryuk P.O. Box 16 Mekoryuk, AK 99630 907.827.8903 phone 907.827.8905 fax Hooper Bay P.O. Box 289 Hooper Bay, AK 99604 907.758.4330 phone 907.758.4331 fax Scammon Bay P.O. Box 101 Scammon Bay, AK 99662 907.558.5523 phone 907.558.5524 fax Juneau 204 N. Franklin Street, Suite 1 Juneau, AK 99801 907.586.2360 phone 907.586.2331 fax

Coastal Villages Region Fund Staff (Left to Right) 1st Row: Elizabeth Bell, Catherine Jumbo, Verla Mojin; 2nd Row: Norman Cohen, Miranda Strauss, Lynn Wallona, Selma Davis, Janet George, Jamie Active; 3rd Row: Moses Whitman, Greg Slats, Cheryl Dahl, Paula Jones, Angie Pinsonneault, Deborah Vo; 4th Row: Bobby Williams, Janette Maas, Matt Tisher, C. Morgen Crow