2015 Annual Report

Page 1

Coastal Villages Region Fund

Annual Report



Table of Contents Table of Contents Mission Statement A Message to Our 9,200 Residents Board of Directors Coastal at a Glance in 2015 Bering Sea Fisheries Advocacy Community Benefits Programs To Help our Region Community Service Centers Employment Youth Employment Local Fisheries Update Balance Sheet Income Statement General & Administrative Expenses Notes to the Financial Statements



2 3 4 5 6 7 8 9 10 13 14 15 16 17 18 19 20

Mission Statement Strategic Intent (Vision)

Continuous focus on balancing growth in commercial fishing and sustainable development of Coastal Villages Region Fund communities.

Strategic Mission

Provide the means for development of our communities by creating sensible, tangible, and long-term opportunities that generate HOPE for all people who want to FISH and WORK.

Core Values • • • • • • •

Effective Strategic Leadership Trust, Integrity, and Teamwork Respect for and Understanding of all PEOPLE Active Community Participation Respect for and Understanding of the Land, Sea, and Resources Growth and Sustainability through Maximum Return on Capital Industrious People + Job Opportunities = Self Determination

Core Competencies

• • • • • •

Balance the needs, wants, and expectations of all-now and seven generations from now Understand risks/rewards, develop a plan of action, support it, and execute on it Deliver efficient and equitable economic benefits to our communities Develop and deploy successful business models and adapt as needed for future use Support bold thinking and continuous innovation Deliver disciplined, purposeful, and sensible initiatives to sustain and stimulate new economic growth in our region

Member Communities Scammon Bay Hooper Bay Chevak Newtok Tununak Mekoryuk Nightmute Toksook Bay Chefornak Kipnuk Kwigillingok Kongiganak Tuntutuliak Napakiak Napaskiak Oscarville Quinhagak Eek Goodnews Bay Platinum



A Message to Our 9,200 Residents 2015 was a year of balance for CVRF. We have survived the vulnerability of our organizational infancy. We have endured the turmoil of our company’s teenage years. And we are now enjoying the fruits of organizational maturity. Does this mean we are invincible? Most definitely not. But as we cycle through the normal highs and lows of our business, we face them with a calmness that comes from experience and maturity. We are not an organization of experimental attempts at progress; we have become purposeful and deliberate, thoughtful and decisive, bold and sensitive. The decisions we must make are often hard. Seldom, if ever, are they celebrated by everyone. But the decisions are made in the spirit of balance – balance for the needs and wants of all the people living in our region. And balance between the needs and wants of people and the needs of the company. We cannot sacrifice the future for the luxuries of the present. And so sometimes we have to make the difficult decision to say no. In 2015, we fished hard for pollock, crab, and cod so that we could earn our way towards economic equality. We leased out our halibut in order to more fairly distribute benefits from CDQ fish. We were ready at the Platinum plant in early July, then had to wait to fly out cohos in August. We investigated a growth opportunity but then stepped back when it became clear it would not advance our company or our region. We ran two new rounds of People Propel® and continued the Designated Funding program. We amped up Youth-to-Work and increased our focus on the young people of our region. We said no to some things, and yes to others. We continued to work with Congress to distribute CDQ quotas based on a fair and balanced formula. The CDQ program has brought so many good things to the people along Alaska’s west coast, but the imbalanced distribution of a public resource is hurting the program. We are confident in the knowledge that the people of all the CDQ regions want fairness and equal treatment, and that politics will give way to grassroots support. Even when considered in the big picture of the whole CDQ program, the Coastal Villages region is massive. Covering 30,000 square miles of rugged Alaskan coastline, we serve over 9,200 people living in 20 communities. While our region is not connected by traditional road systems, local river systems serve as highways between neighboring communities, and air travel is often the most realistic form of transportation. Cultural practices vary, language can be hampered by different dialects, and geographic conditions dictate a vast array of infrastructure needs. Yet, somehow, the leadership of 20 separate communities came together, turned their differences into strengths, and formed one united organization: Coastal Villages Region Fund. As we work toward continued progress and growth, we are proud of each of our successes and we have and will learn from our mistakes. We must continue to make balanced decisions with the best information available at the time. We must continue to make decisions based on information and fact, not rumors and emotion. We must rely on each other to proceed with the best of intentions for the good of the company. Because the good of our company equals the good of our region. We act with these principles in mind as we go forward and do right for our region as a whole.



Richard Jung, CVRF Board Chairman

Morgen Crow, CVRF Executive Director

Board of Directors Community Elections

Coastal Villages’ Board of Directors is comprised of democratically elected representatives from each of our 20 member communities. Every two years, one third of the Board members are up for democratic election in their respective communities. CVRF is excited to welcome Larson Hunter, Jeremy Tuluk, and Edward Shavings Jr. to the Board! All Coastal Villages Region Fund (CVRF) Board members must be a permanently domiciled residents of the communities they are representing. Elections are run under a standardized democratic process designed to give fair voice to all residents of each community.

2015 Board of Directors Richard Jung

Evan S. Evan Goodnews Bay 2016-2021

George Chuckwuk Secretary Kipnuk 2012-2017

Darren Cleveland Treasurer Quinhagak 2014-2019

Napakiak 2016-2021 John Samuel Executive Committee Platinum 2014-2019

Gabriel Olick Executive Committee Tuntutuliak 2014-2019

John Andy Executive Committee Newtok 2014-2019

Joe Avugiak Chefornak 2016-2021

Walter Brown Eek 2012-2017

Jeremy Tuluk Chevak 2016-2021

Eric Olsen Sr. Hooper Bay 2012-2017

Oscar Active Sr. Kongiganak 2013-2017

Roland Lewis Kwigillingok 2014-2019

Edward Shavings Jr. Mekoryuk 2016-2021

Stephen Maxie Jr. Napaskiak 2014-2019

Paul Tulik Nightmute 2016-2021

Frank Berezkin Sr. Oscarville 2012-2017

Larson Hunter Scammon Bay 2016-2021

Robert Pikta Sr. Toksook Bay 2013-2017

Felix Albert Tununak 2014-2019


Vice Chairman



Coastal at a Glance in 2015 Coastal Villages Region Fund

20 Communities | 20 Board Members | 160+ Staff

Coastal Alaska Premier Seafoods Bering Sea Operations

6 Wholly Owned Vessels 125 million pounds of seafood caught

Coastal Villages Pollock (CVP) 135 Crew Members | 1 Catcher/Processor 95 million pounds caught in 2015

Programs Projects Coastal Villages Crab (CVC)

Benefits to 9,244 Residents $344 million spent between 1997-2015

16 Crew Members |2 Crab Vessels 7 million pounds caught in 2015 COASTAL VILLAGES SEAFOODS

Coastal Villages Longline (CVL) 42 Crew Members | 3 Vessels 23 million pounds caught in 2015



170 Processors | 1,000+ Fishers & Crew 27 Tender Crew | 6 Tenders 2015 Payments to fishers: $1.2 million

Bering Sea Fisheries Regional Investment of Bering Sea Profits Where does the money come from for our projects and programs? It comes from the Bering Sea. CVRF is not a grant or donation funded organization. We earn money for our communities through the Bering Sea fishing industry. When our company started in the 1990’s, we leased our CDQ quota to other fishing companies. We used the money earned through those leases to pay for in-region programs in our communities and to invest in those fishing companies. Over time, we were able to save enough money so that we could buy fishing boats and quota outright: we now own our own quotas (not just CDQ quotas) and we own and operate our own fishing vessels. Many said we couldn’t do it, but we’ve been successfully operating for many years. It’s very important to realize that without profitable fishing in the Bering Sea, there would be no money for CSC jobs, scholarships and internships, youth work

Money Generated by Bering Sea Fishing

programs, People Propel®, and the other programs and services in our 20 member communities. The staff and the crew work hard to make sure Bering Sea fishing is profitable for the benefit of our member communities – thank you staff and crew!

Coastal Alaska Premier Seafoods

In 2014, we combined our existing Bering Sea operations into a single platform – Coastal Alaska Premier Seafoods (CAPS). This entity was created with the vision of building a world class seafood harvesting, processing, and marketing company focused on the fishery resources of Alaska and the Bering Sea, owned by and operated for the benefit of Alaskan residents within the Coastal Villages region. Over the last year, CAPS focused on providing a wide variety of work opportunities for the people of both our region and our state, and continuously strived to maximize the longterm cash flow available to fund programs and economic development projects designed to benefit the people of our region. Within CAPS are housed three primary fishing operations: pollock, crab, and cod. While pollock generates most of Coastal’s income, all three play a vital role in the organizaton.

Community Programs and Projects People Propel®

Scholarships Internships

Funeral Assistance

In-Region Fishing Operations


30% Cod 12%

Pollock 58%




Community Service Centers


Youth Programs

Community Project Funding

Outreach Projects Fishery Research Tax Assistance

Pollock Provides® Programs

Marine Safety



Advocacy Coastal Villages Region Fund remains committed to getting allocations fixed so that our growing region will continue to experience the full potential of the CDQ Program. Since its inception in 1991, the Western Alaska Community Development Quota (CDQ) program has delivered remarkable benefits to the 65 Bering Sea coastal communities that would not otherwise participate in the abundant federal fisheries – and associated economic activity – off their shores. Today, the six CDQ groups control more than a billion dollars of assets (quota, vessels, processors, and support companies) and have delivered more than a billion dollars in benefits to the CDQ region. However, CDQ’s growth has exposed a fundamental flaw in the program’s design: the distribution of benefits has become dramatically biased in favor of a few small villages at the expense of most of the communities and people served by the program, and every year the problem only gets worse. All 26,000 residents who live in the 65 communities that participate in the CDQ program deserve to be treated equally. However, as it stands right now, the 9,244 residents of the Coastal Villages region recieve a much smaller porportion than some other CDQ residents.

population, poverty, and unemployment in the larger groups’ regions continue to grow. For the continued success of the program, Congress should restore fairness and remove perceptions of political influence by instituting a formula-based system.

Board Members in Washington DC.

Unfair resource allocations established in the early days of the program remain locked in place while

Contact your representative to support fair CDQ allocations! Senator Lisa Murkowski

Senator Dan Sullivan

Rep. Don Young

Washington, DC Office 709 Hart Senate Office Building Washington, DC 20510 Phone: (202) 224-6665 Fax: (202) 224-5301

Washington, DC Office 702 Hart Senate Office Building Washington, DC 20510 Phone: (202) 224-3004 Fax: (202) 224-6501

Washington, DC Office 2314 Rayburn House Office Building Washington, DC 20515 Phone: (202) 225-5765 Fax: (202) 225-0425



Community Benefits CVRF’s residency requirements ensure that the benefits of CDQ remain intact for the residents of our 20 member villages. People Helping People

The CVRF region is rapidly growing. However, the economy in our region struggles to provide opportunity for our residents due to a lack of steady jobs for everyone. CVRF works hard every day to create real jobs for our residents. Our goal is to create jobs with real expectations that promote real achievements. As a part of this mission, we continue to pursue and invest in economic development as well as educational opportunities for our youth that will create both jobs and the skilled workforce needed to fill them. We hope to fill high-paying jobs in our schools, clinics, stores, and construction sites with our residents. The benefits provided by Coastal Villages Region Fund – totaling over $22 million in 2015 alone and $344 million since 1997 – are having a dramatic impact within our region. The more that our region grows, the more important it is that we focus on working together with a united front, no matter who we are or which village we come from. We are one community, not twen-

ty - the Coastal Villages community. Through unity, teamwork, mutual respect, and thoughtfulness for each other, we will grow stronger together, and we will be able to do even more to help each other. We will build a future for our region that will bring opportunity to all residents.

Residency Is Important

Of the six CDQ Groups within the Western Alaska Community Development Quota Program, CVRF serves the largest population at over 9,200 residents. In order to qualify for programs and benefits, a resident simply has to live in any of the 20 CVRF member communities. CVRF’s residency requirements ensure that the benefits of CDQ remain intact for our 20 member villages. To be eligible for programs, you must go through a residencey verification process every year, which can be completed at: http://workfishhope. coastalvillages.org/.

Community Service Representative Team



Programs To Help our Region Internships

and trade schools in the pursuit of higher education. Educating our residents helps ensure that Alaskans will continue to play an important role in our business. We hope to continue developing a skilled work force that can be hired in our communities, our corporate office, and take leadership roles in our Bering Sea fleet. In 2015, CVRF awarded a total of $363,548 in scholarships to 125 residents.

The eighteen Community Benefit interns worked at CVRF’s CSCs and helped with the CSC operations and the Youth to Work Program.

The deadline to submit applications for the fall semester (August – December) is in early June. and the spring semester deadline (January – July) is in early December. Residents are strongly encouraged to apply for this program. Pollock Provides® for our residents who choose to seek higher education as a step towards a meaningful career-hopefully with CVRF and its many subsidiaries.

Every year CVRF gives college students the opportunity to gain valuable work experience through an internship program. In 2015, eighteen Community Benefit and seven Anchorage office interns earned over $143,000 while working at CSCs and at the Anchorage office. CVRF looks forward to enhancing this program to further benefit the youth of our region.

The seven interns in Anchorage worked in various departments gaining valuable work experience, as well as lived on their own in Anchorage. In order to qualify for the internship program, a resident must be currently enrolled in college or must have recently graduated from high school. Hiring interns within

2015 Anchorage Interns their respective communities helps our residents find work at home in between the spring and fall semesters of college. Congratulations to Gwen Andrew and Rachel Ayaprun who were hired as CVRF employees upon completing their internships!


The Louis Bunyan Memorial Scholarship Program provides funds for our residents to attend universities




Marine Safety Training at AVTEC The training assistance program provides tuition assistance to residents who are attending training programs that last from a few days up to twelve weeks. 36 residents were awarded $25,646 in 2015 for training opportunities. There is no deadline to submit applications for this program. Residents and local organizations that are seeking short-term training opportunities to advance their knowledge or certifications are encouraged to apply. Areas that residents attended training for in 2015

include construction equipment, hazwoper, firefighting, grant writing, social work, plumbing, and commercial drivers licenses.

Elder Program

During 2015, 594 elders benefitted from the Elder Program. With a total budget of $325,000, the elder program helped with bills such as heating oil, electricity, water and sewer, gasoline, motor oil, and groceries. Elders who could not visit the CSC to verify their residency were helped by CSRs with an elder residency verification form. The Board of Directors approved $325,000 for the 2016 Elder Program.

Heating Oil

The budget of $325,000 assisted 1,839 households with the high cost of heating oil. CVRF staff worked with local governing Bodies and heating oil vendors directly for the distribution of this benefit. The Board of Directors approved $325,000 for the 2016 Heating Oil Program.

Designated Fund

The CDQ Designated Fund serves as an economic resource to CVRF communities by funding community development projects. It also provides matching funds for grants. The fund had two rounds of spending in 2015, making $1.85 million was available for community projects. CVRF continues to help community organizations provide services and infratructure development to communities by investing in a wide range of projects.

Funding was used for various types of projects including: Designated Fund Activities Waste Management

Village Police Officer Wages Community Building Renovations Church Donations Community Clean-ups Youth Camps Boardwalk Repairs

Trail Markers and Shelters Washeteria Improvements Community Gatherings Youth Employment Search and Rescue

Community Clean Up in Toksook Bay



Safety Programs

The safety of our employees and residents is paramount. In 2015, CSRs and Mechanic/Welders attended firefighting training to prepare them for emergencies in their CSCs and their communities. Additionally, CVRF maintains EPIRBs, PLBs, immersion suits, vests, throwables, whistles, and lights at each of our CSCs for residents to borrow. CVRF provides Search and Rescue (SAR) teams with assistance during and after missions, and helps fund gas and other supply purchases. CVRF donated more than $3,100 worth of gas for SAR efforts in 2015.

Fisheries Research

In 2015, 2,058 returns were completed for a total of $2,872,824 in tax refunds. Since 2006, this program has helped region residents get almost $24 million in tax refunds.

People Propel®

The People Propel® Program was created in 2012 and has grown to be one of Coastal Villages’ most popular programs. CVRF pays 40 percent of the purchase price of equipment, helping residents purchase safer, more efficient boats, outboards, and fishing equipment. In 2015, the program was expanded to include ATVs and snowmachines. Such equipment is essential to life in our communities, where it is used for daily transportation as well as subsistence. In 2015, 339 applications were approved and CVRF provided $1.3 million in support.

In 2015, CVRF partnered with several entities on fisheries research projects. These projects helped to determine the number of salmon escaping to their spawning Since the program’s inception, People Propel® has

Coast Guard Safety Training with Youth grounds and helped in the long-term management of our salmon runs. $153,000 was committed for the following projects: • Native Village of Kwinhagak – Weir Project • Alaska Department of Fish & Game – Weir Project

Tax Assistance

CVRF provided funding to the Alaska Business Development Center to facilitate free tax assistance services in our member communities. This program helps residents navigate the complexities of filing their taxes and helps them get their tax refunds.



Diana Therchik’s new People Propel four wheeler assisted 846 participants with the purchase of over $10 million worth of boats, outboard motors, nets, ATVs, snow machines, and safety gear.

Youth Leadership

CVRF contributed over $91,000 in funding for youth leadership programs. Contributions were made to several different activities. CVRF supports opportunities for youth groups to engage in activities that promote a positive and healthy lifestyle.

Community Service Centers There are Community Service Centers (CSCs) in nineteen of the twenty CVRF communities that are open to the public for services such as meeting room rental, shop space rental, mechanic/welding services, internet access, and acquiring information on CVRF’s many services. The staffing of and operational costs of the CSC’s are subsidized by the earnings in the Bering Sea. CVRF invests approximately $3.5 million every year to run the CSCs. Local residents are encouraged to visit their CSC to learn more about what CVRF has to offer. The normal operating hours of the CSC buildings are Monday-Friday from 8:00AM to 5:00PM.

Community Service Center Staff

Each of our staff members plays a vital role in delivering the many benefits and services that are provided each year. CVRF has twenty-four full-time and twenty-one part-time CSR positions that are supervised by four Community Service Managers (CSMs). The CSMs are based in CVRF communities and supervise a team of CSRs.

CVRF Shop Services

CVRF has eighteen full-time and twenty-three on-call Mechanic/Welder positions at our CSCs. These highly skilled mechanics are able to provide much needed repairs to four wheelers, snowmachines, boats, and outboard motors. They are also able to build custom parts for residents in the community.

Community Service Centers Chefornak CSC: (907) 867-8303 Chevak Joe Paniyak Memorial CSC: (907) 858-7566 Eek Steven ‘Angivran’ White CSC: (907) 536-5301 Goodnews Bay CSC: (907) 967-8338 Hooper Bay CSC: (907) 758-4330 Kipnuk Tim Samson CSC: (907) 896-5080 Kongiganak CSC: (907) 557-5300 Kwigillingok CSC: (907)588-8250 Mekoryuk CSC: (907)827-8138 Napakiak Fritz Willie Memorial CSC: (907)589-2300 Napaskiak Helen Sarah Kaganak CSC: (907)737-7016 Newtok CSC: (907) 237-2310 Nightmute Paul Tulik CSC: (907)647-6252 Oscarville CSC: (907) 737-7358 Quinhagak Wassilie Bavilla CSC: (907)556-8301 Scammon Bay Maryann Sundown CSC: (907) 558-5300 Toksook Bay CSC: (907) 427-7300 Tuntutuliak CSC: (907) 256-2200 Tununak CSC: (907) 652-6250

A Mechanic/Welder hard at work in a CSC



Employment Work Fish Hope - these are the words that are imprinted below our company logo. Residents who want to work are given hope by the opportunities that CVRF has available through our multiple in-region offices, crab boats, longline vessels, and catcher/processing vessels. These are true Alaskan jobs that we continuously aim to fill with our residents. CVRF paid over $5.1 million to 869 residents in 2015. Of these employees, 569 were from the Youth to Work program. They earned $359,058.

Resident Employees by Company and Community Company CAPS CVE CVRF CVS Grand Total

Employees 18 53 651 157 879

Wages $540,397 $1,557,607 $2,082,864 $969,722 $5,150,590

*This table reports more employees than the ‘by community table’ because some employees worked for more than one CVRF company.

something here photo of staff?



Community Chefornak Chevak Eek Goodnews Bay Hooper Bay Kipnuk Kongiganak Kwigillingok Mekoryuk Napakiak Napaskiak Newtok Nightmute Oscarville Platinum Quinhagak Scammon Bay Toksook Bay Tuntutuliak Tununak Grand Total

Employees 53 102 28 12 115 56 52 30 12 31 30 52 14 12 2 63 57 54 45 49 869

Wages $253,315 $568,252 $253,019 $106,909 $486,142 $325,671 $272,124 $172,479 $291,723 $158,429 $145,306 $218,646 $130,369 $57,928 $26,346 $500,958 $438,081 $291,573 $165,194 $288,126 $5,150,590

Mechanic/Welder Team

Youth Employment Youth Employment

To prepare youth for a competitive workplace, Coastal runs a summer youth employment program. CVRF’s Youth to Work program has grown tremendously since it first started in 2007. The program is aimed at providing youth between the ages of 14 and 19 with real world work experience and the opportunity to learn how to support themselves while building self-esteem and self-respect. • 569 youth participated in CVRF’s 2015 Youth to Work Program, with the youth participants earning a total of $359,058. • Each youth worker is required to log their work hours and tasks, and report to their supervisors daily. This experience helps our youth build a resume that can lead to more rewarding employment opportunities in the future. • Participants worked at local businesses such as grocery stores, and local governing bodies. • Youth created traditional attire with direction and help from local instructors. • Youth also picked fresh handpicked tundra greens and delivered them to elders in many communities. • T-shirts were given out to all of our youth and business participants. • The youth celebrated the completion of the summer program with a picnic party.

Youth to Work Employees Community Chefornak Chevak Eek Goodnews Bay Hooper Bay Kipnuk Kongiganak Kwigillingok Mekoryuk Napakiak Napaskiak Newtok Nightmute Oscarville Quinhagak Scammon Bay Toksook Bay Tuntutuliak Tununak Grand Total

YTW 37 62 23 5 75 41 34 21 5 24 21 30 9 9 33 44 34 34 28 569

Wages $21,678 $38,756 $15,330 $3,154 $48,188 $26,027 $19,902 $14,971 $3,076 $16,422 $13,013 $18,211 $4,360 $5,904 $21,348 $26,467 $20,617 $22,752 $18,882 $359,058

Youth to Work employees display their projects



Local Fisheries Update CVRF has been consistently expending CDQ dollars on local fisheries since 1998. In 2009, CVRF opened the Coastal Villages Seafoods (CVS) fish processing facility in Platinum to continue supporting the commercial salmon and halibut fisheries in the Kuskokwim area and provide economic opportunity to a relatively small number of fishermen with proximate access to those fisheries. This experiment, while costly, supported jobs in an impoverished area that would not otherwise have consistent access to local processing. Coastal planned to operate the facility at a loss for five years while the fishery matured. Seven years later, with substantial pressure on the resource from several user groups, policy makers have been unable to commit to a schedule of consistent and reliable commercial salmon openers upon which CVRF can plan operations. Additionally, CVRF’s local fishery operations and the Platinum plant have continued operating at a significant loss, requiring ongoing yearly subsidies funded by Coastal’s earnings in the Bering Sea. To ensure our region can weather the difficult economic times ahead, and to alleviate the pressure on the local fishery, thus freeing it up for subsistence use, Coastal has determined it must pursue only healthy and vibrant programs that provide the greatest benefit to the largest number of people.

The Kuskokwim Is Not A Tenable Commercial Fishery at This Time

• There is substantial pressure on the local resource, with tensions between up-river and down-river communities, commercial and subsistence users. • It was always known that CVS would operate at a significant loss for at least five years, but there are profound economic difficulties ahead and CVRF can no longer continue subsidizing the fishery at the expense of other programs. • CVS has consumed over $66 million in the last seven years, and accumulated $134 million in losses since 1999. • Coastal believes that money can be better spent on programs that have a greater impact on more families in the region.



In-region Fisheries Fail to Present Equal Economic Opportunities For All CVRF Residents

The benefits of the CVS program have been unavoidably concentrated in a relatively small number of communities. Only some villages, and only a small subset of the region’s residents, have benefited from the CVS program. 
 Any additional expenditures CVRF makes to continue subsidizing the in-region fishery would come at the expense of CVRF’s growth and ability to provide other, more widespread benefits to the region’s residents.

The 2015 CVS season

In 2015, CVS conducted local commercial salmon operations. During the short August fishery, a small fresh market became available and much of the cohos were shipped out fresh. • A little over 400 commercial salmon fishers participated in 2015, and earned over $1 million. • 184 halibut fishers recieved just under $100,000. • CVS employed 98 processors and support staff who worked at the Platinum processing plant and the Quinhagak and Bethel docks. • Residents of CVRF communities earned $969,722 through local fisheries.

Balance Sheet Consolidated Statement of Financial Position Years Ended December 31, 2015 and 2014 Assets Current assets: Cash and cash equivalents Trade accounts receivable, less allowance for doubtful accounts of $294,695 and $266,004 in 2015 and 2014, respectively Other accounts receivable Notes receivable, current portion, net Inventory Prepaid expenses Deposits Total current assets Restricted cash Interest receivable, excluding current portion Notes receivable, excluding current portion Property, plant, vessels, and equipment, net Investments in fishing rights Investments in unconsolidated fishing affiliate Total assets

Liabilities and Net Assets Current liabilities: Accounts payable and accrued expenses Accrued payroll liabilities Notes payable, current portion Deferred revenue Security deposits Other Total current liabilities Notes payable, excluding current portion Total liabilities Net assets: Unrestricted net assets Temporarily restricted net assets Total net assets Total liabilities and net assets

2015 $




6,061,498 123,591 863,043 7,730,131 3,187,897 239,001 59,232,616 749,590 3,251,114 18,929,044 81,043,475 121,405,130 4,483,259 289,094,228

6,151,229 69,496 14,506,099 7,362,017 3,831,552 239,497 61,376,957 533,510 5,259,650 19,386,538 93,377,745 121,405,130 3,268,287 304,607,817

2015 $


Distribution of Assets Investment in fishing affiliates 2% Investment in fishing rights 42%

Other 1%

Cash & investments 14%



5,712,813 1,265,717 277,904 13,197 29,926 70,713 7,370,270 24,632,877 32,003,147

2,670,072 832,400 17,109,521 19,080 27,943 — 20,659,016 25,267,160 45,926,176

256,957,081 134,000 257,091,081 289,094,228

258,676,141 5,500 258,681,641 304,607,817

Owned Fishing Quotas (Excludes CDQ Quotas)

Receivables 2% Inventory 3%

Crab 31%

Pollock 41%

Notes receivable 8%

Property, plant, & equipment, net 28%

CVRF has acquired a diverse array of assets that are used to generate income.

Pacific cod 28%

CVRF leveraged our CDQ to purchase additional fishing quotas in the pollock, crab, and cod fisheries. These quotas generate money used for projects and programs.



Income Statement Consolidated Statement of Activities Years Ended December 31, 2015 and 2014 2015

Bering Sea Fishing Operations Seafood sales




Programs and Projects, General and Administrative

Bering Sea Fishing Operations









Total cost of sales



Gross profit (loss)


Programs and Projects, General and Administrative































Community service centers


















Cost of sales: Bering Sea operations Inshore and nearshore operations

Other revenues, gains, losses, and other support: Lease and profit share income People Propel® program Interest income

Landing tax contribution (temporarily restricted) Loss on impairment of vessels Loss on disposal of assets Other





















Total other revenues, gains, losses, and other support Total revenues, gains, losses, and other support

Indirect expenses: Programs and projects





Other operating expenses







General and administrative







Rental and occupancy





Income tax (benefit) expense



Total indirect expenses







Total expenses

















Change in net assets before equity in income of fishing affiliates Equity in income of unconsolidated fishing affiliate


Change in net assets


— (24,068,680)

Net assets at beginning of the year Net assets at end of the year


Adjusted EBITDA


Cumulative Revenues


January 1997 through December 2015


255,795,069 258,681,641


350,000 300,000

In Thousands

In Thousands

250,000 200,000 150,000 100,000

$200,000 50,000






January 1997 through December 2015








Cumulative Community Benefits







CVRF has earned over $1.1 billion in its 19 years of operation. Our average annual revenue jumped considerably when we became an operator instead of a rent taker

CVRF has pumped an average of $29 million into its communities each year since 2006!

General & Administrative Expenses General & Administrative Expenses

Cash Generating Revenues

December 31, 2015

Seafood Sales 91.89%



Bad Debt Expenses

Quota lease and profit share income 4.79%

Other 3.32%

Total Expenses


Bank and Finance Charges


Computer & Software Expenses


Depreciation Expenses


Donations & Contributions


Drug Screening & Pre-Employment Expenses


Dues, Permits, Taxes & Licenses

Bering Sea Operations 64.63%

Other Operations 0.90%

G&A 11.75%

Programs & Projects 22.73%

Cost of Community Benefits Fisheries Support 2.22%

Outreach 6.00%

4-SITE 1.97% Local Fisheries 66.69%

CSC Operations 12.63%

People PropelÂŽ 6.72%

Elder Program 1.40% Heating Oil 2.38%

Ratio of G&A Expenses to Total Expenses 120.00%



CVRF maintains a low G&A rate


Employee Benefits


Employee Education Assistance








Interest Expenses


Internet Fees


Meals and Food Expenses


Miscellaneous Expenses






Per Diem


Printing and Production Expenses


Professional Fees and Services




Rental Expenses


Repairs and Maintenance






Transportation and Parking


Travel Expenses




Total Expenses

$683,035 $150 $11,438,769





Notes to the Financial Statements 2015 Committee Meetings



Meeting Dates


Executive Committee


Paul Tulik, James Akerelrea, George Chuckwuk, Evan Evan, John Andy, Gabriel Olick, Skye-Michael Chayalkun


Paul Tulik, James Akerelrea, George Chuckwuk, Evan Evan, John Andy, Gabriel Olick, Skye-Michael Chayalkun


Paul Tulik, James Akerelrea, George Chuckwuk, Evan Evan, John Andy, Gabriel Olick, Skye-Michael Chayalkun


Paul Tulik, James Akerelrea, George Chuckwuk, Evan Evan, John Andy, Gabriel Olick, Skye-Michael Chayalkun


James Akerelrea, George Chuckwuk, Evan Evan, Gabriel Olick, John Andy, Skye-Michael Chayalkun, Stephen Maxie, Jr. (guest)


James Akerelrea, George Chuckwuk, Evan Evan, Gabriel Olick, John Andy, Skye-Michael Chayalkun


Richard Jung, James Akerelrea, George Chuckwuk, Evan Evan, Gabriel Olick, John Andy, Skye-Michael Chayalkun


Richard Jung, James Akerelrea, George Chuckwuk, Evan Evan, John Andy, Skye-Michael Chayalkun


Richard Jung, James Akerelrea, George Chuckwuk, Evan Evan, Gabriel Olick, John Andy, Skye-Michael Chayalkun


James Akerelrea, Evan Evan, Gabriel Olick, Skye-Michael Chayalkun, John Samuel (alternate), Joe Avugiak (alternate)


Richard Jung, James Akerelrea, George Chuckwuk, Evan Evan , Gabriel Olick, Skye-Michael Chayalkun, Darren Cleveland (alternate)


Richard Jung, James Akerelrea, George Chuckwuk, Evan Evan , Gabriel Olick, Skye-Michael Chayalkun, Darren Cleveland (alternate)



James Akerelrea, Paul Tulik, Gabriel Olick, Richard Jung



Eric Olson, Darren Cleveland, Roland Lewis, George Chuckwuk



John Andy, Evan Evan, Walter Brown



Stephen Maxie, Jr., John Samuel, Paul Tulik, Felix Albert, Robert Pitka


Stephen Maxie Jr., Paul Tulik, Robert Pitka, John Samuel, Felix Albert



Richard Jung



Gabriel Olick, Oscar Active, Edward Shavings

Policy & Compensation Committee


Paul Tulik, James Akerelrea, John Andy, Stephen Maxie Jr., Robert Pitka


Richard Jung, James Akerelrea, John Samuel, Stephen Maxie, Jr, Paul Tulik


Richard Jung, James Akerelrea, John Samuel, Stephen Maxie, Jr, Paul Tulik


Richard Jung, James Akerelrea, John Samuel, Stephen Maxie, Jr


Professional Fees Consulting: North Inlet Advisors Sockeye Business Solutions Strategies 360 SpecTec Employee Benefit Management Services Elliot Bay Design Group Sound Marine & Industrial Services HealthForce Fusion Marine Technology Det Norske Veritas Alaska Executive Search Waveland Case Marine Safety in Motion John Hancock Other Consulting TOTAL Consulting

$201,500 $130,068 $126,000 $92,739 $75,000 $57,963 $56,019 $41,318 $35,544 $34,022 $30,300 $30,000 $27,094 $25,873 $25,417 $338,168 $1,327,025

TOTAL Professional Fees


KPMG, LLP, performed the audit and prepared the audit report upon which the financial information presented in this annual report is based.

Compensation to Key CVRF Personnel

The CVRF Board of Directors continues to set aggressive goals and objectives for CVRF and therefore seeks to hire, retain, and motivate the highest caliber employees at every level of operation. In 2015, the top ten highest paid personnel earned the following wages: Executive Director Morgen Crow - $475,000, Arctic Sea Skipper Owen Kvinge - $415,687, North Sea Skipper Robert Thelen - $344,055, Director of Business Development Angie Pinsonneault - $290,000, Bering Sea Operations General Manager Michael

Legal: NMTC Transaction Work Due Diligence General Legal TOTAL Legal

$28,265 $149,754 $491,825 $669,844

Accounting: KPMG - Tax Preparation and Strategies KPMG - Benefit Plan Audit KPMG - Audit Services TOTAL Accounting

$22,500 $163,982 $245,990

Lobbying: Federal and State Lobbying TOTAL Lobbying

$196,877 $196,877


$2,439,736 Coleman - $283,500, Director of Finance Chip Wilson - $261,160, Northern Hawk Fish Master Harold Longvanes - $260,627, Northern Hawk Skipper James Egaas - $237,616, Artic Sea Crew Trulis Finbraten $224,055, Coastal Village Seafood Manager Nicholas Souza - $210,000. The Board follows Rebuttable Presumption of Reasonableness guidelines in determining the compensation for its Executive Director and top 4 executives, a process which includes comparisons with compensation levels at other similar companies. In 2015, the following bonuses were paid to key CVRF staff: Executive Director Morgen Crow - $375,000, Director of Business Development Angie Pinsonneault - $85,000, Bering Sea Operations General Manager Mike Coleman - $41,170 and Coastal Villages Seafoods Manager Nick Souza - $50,998.



Fish Deliveries by CVRF Employees

During 2015, eleven CVRF employees made deliveries of salmon to Coastal’s in-region seafood operations and/or recieved compensation related to halibut. These employees received a total of $19,980 in fisheries related payments in addition to compensation received by them as CVRF employees. The highest amount received was $6,328, and the lowest amount received was $277. Even after the additional income from fisheries related payments, none of the eleven were among the top eleven highest paid personnel at CVRF or its subsidiaries.

Board Compensation Policy and Fees

CVRF Board members receive a daily stipend during meetings and an additional monthly stipend for the CVRF-related work that occurs between CVRF meetings. The CVRF board compensation policy was adopted in June of 2004 after consultation by CVRF with independent experts, and the policy stipulates that any changes must be approved by an independent body. The policy was updated in January 2011 and was approved by the independent authorized body comprised of an independent member of each community. The CVRF board compensation policy is in full complience with Rebuttable Presumption of Reasonableness guidelines. During 2015, CVRF paid its board members a total of $650,936 in salaries, stipends and benefits. The Board members who participated in the regional fishery received a total of $12,575 in fisheries related payments. The highest amount paid to any of the CVRF Board members was $5,325 and the lowest was $423.

Related Party Transactions

CVRF goes above and beyond the required related party disclosures, by reporting employees and Board members who have sold fish to the Company. We also report material employment and business relationships, as are seen below. CVRF would like to specifically mention that none of our employees or Board members have a financial relationship with any partners who lease or harvest our quotas.



Board Member: Larson Hunter Relationship: Father-in-law: George Smith Job Title: Mechanic/Welder Manager Amount: $113,995 Board Member: Paul Tulik Relationship: Brother: Xavier Tulik Job Title: Community Service Representative Amount: $52,552 Board Member: Eric Olson Relationship: Daughter: Cheryl Smart Job Title: Community Service Representative Amount: $49,915 Board Member: Jeremy Tuluk Relationship: Self Job Title: On-Call Mechanic/Welder Amount: $23,843 Board Member: John Samuel Relationship: Self Job Title: Plant Watchman Amount: $11,160

Legal Proceedings Involving Directors

CVRF was not engaged in any litigation with any of its directors during 2015.

Professional Fees

In 2015, Coastal Villages paid the following fees for professional services: (1) $669,844 in legal fees; (2) $1,327,025 in consulting fees; (3) $245,990 in accounting fees; and (4) $196,877 in lobbying fees. Please see the table on page 21 for further detail.

Auditor Relationship

CVRF has not had any disagreements with our auditor in any year, including in 2014 and 2015. CVRF received non-audit services from our auditor (KPMG) in 2015. We paid KPMG $59,508 for tax services.


The CVRF Bylaws create a CVRF Executive Committee consisting of seven members: the CVRF President, Vice President, Secretary, Treasurer, and three at-large CVRF Board members. The CVRF Executive Committee is authorized by the Bylaws to exercise all

authority of the full CVRF Board in managing CVRF, except for the selection of CVRF officers and Executive Committee members. The CVRF Bylaws also authorize the President, with approval of a majority of the CVRF Board, to appoint other CVRF committees with such functions, powers, and duties as determined by the President and CVRF Board. Using this authority, CVRF has established a Policy/Compensation Committee to make recommendations to the Board on CVRF policies, including as related to investments, employee compensation, in-region fisheries, donations, artwork, board travel, participant eligibility, and other matters. CVRF has additionally established a Finance Committee to advise the Board on budgeting and financial matters. For the subsidiaries CVS, CVP, CVC, CVL, CVE, and CAPS, CVRF has established a committee that functions as a subsidiary board.

Additional Compensation Disclosures

have helped deliver to our villages. CVRF will maintain its commitment to hiring and retaining the best personnel available to bring the vision of our Board members to life and create exceptional returns for our stakeholders and the residents of the CVRF communities for generations to come. Name




Morgen Crow

Executive Director

$475,000 $375,000

Angie Pinsonneault

Director of Business Development



Michael Coleman

Bering Sea Operations General Manager



Chip Wilson

Director of Finance



Nicholas Souza

CVS Manager



Eric Deakin

IT Manager



Ken Tippett

Senior Port Engineer



Robert Marquez

Sales & Services Manager



Fariba Strandberg






Lorena Rosenberger Logistics Manager

CVRF fully discloses the compensation of its top personnel in each annual report to its residents. The federal CDQ statute specifically requires each CDQ group to disclose the “compensation levels of the top 5 highest paid personnel” (16 U.S.C. §1855(i)(1)(F)(ii)). Until 2012, there was also a CDQ rule requiring the disclosure of the “total amount…received by each such individual.” CVRF believes that its residents have a fundamental right to more information than what is currently required by the statute and that providing full and fair disclosure is the best way to ensure strong self-governance, the key to the long-term success of any enterprise. We believe that this approach is in the best interest of our communities, the CDQ program as a whole, and our industry over the long term. In the spirit of full disclosure, CVRF has always disclosed the total amount paid to our top 5 personnel, whether they are office staff or crew members. Starting with the 2012 annual report, we expanded our disclosure to include our top 10 personnel and payments made to staff and to Board members. We are additionally disclosing the top 10 “office only” staff. The CVRF Board of Directors is pleased with the financial results that the top personnel in our company



Board of Directors

Main Office Staff

Richard Jung President Napakiak Evan Evan Vice President Goodnews Bay Stephen Maxie, Jr. Secretary Napaskiak Paul Tulik Treasurer Nightmute Walter Brown Executive Committee Member Eek Gabriel Olick Executive Committee Member Tuntutuliak John Samuel Executive Committee Member Platinum Jeremy Tuluk Board Member Chevak Eric Olson, Sr. Board Member Hooper Bay George Chuckwuk Board Member Kipnuk Roland Lewis Board Member Kwigillingok Edward Shavings, Jr. Board Member Mekoryuk John Andy Board Member Newtok Frank Berezkin Board Member Oscarville Darren Cleveland Board Member Quinhagak Larson Hunter Board Member Scammon Bay Robert Pitka, Sr. Board Member Toksook Bay Vacant Board Member Chefornak Vacant Board Member Kongiganak Vacant Board Member Tununak

Morgen Crow Angie Pinsonneault Bob Marquez Arthur Severence Lenore Beaver Nathaniel Betz Lang Van Dommelen Marlene Minnette Marione Evan Florence Kargi Rachel Ayaprun Allison Lewis Daniel Mainor Kimberly Slifer Floretta Nanalook Ashley Webb Meloni Morris Gwendolyn Andrew Nick Souza Timothy Sherman Danielle Zeedar Nicole Fredrick Lex Sargento Leah Middleton Cathleen Jimmie Carolyn George Fariba Strandberg Roxanne Medellin Mandy Ramsay Ces Carpentero Gretchen Williams Linda McKeefery Ariel Castillo Mariia Teresshchenko Alex McCoskey Desiree Kamuyu Paul Parka Lisa Guiel Theresa Kiokun Desiree Welcome Sunhee Hwang Roxann Paul Gayla O'Brien Amanda Latham Kate Koch Lina Dupont Georgianna Wheeler Ledwina Beaver Sophie Gentz Eric Deakin Peter Speaks John Saam Albert Beaver III Chad Shavings Mike Coleman Kyle Duncan Lorena Rosenberger Tatyanna Drakulovic Michael Weems Gregory Mohs Lestine Hof

Community Service Center Staff Jonathan Lewis Chefornak Janet Erik Chefornak Carmen Chagluak Chefornak Jimmy Larsen Chefornak Jack Tunuchuk Chefornak Bernard Panruk Chefornak Liana Pingayak Chevak Clifford Paniyak Chevak Dayna Nash Chevak Charlotte Nayagak Chevak Norman Pingayak Chevak Edward Enoch Chevak Jeremy Tuluk Chevak Arnold Simon-Noratak Chevak Keith Kaganak Chevak Dayna Nash Chevak Carol Brown Eek Lucy Beebe Eek Theodore Brown Eek Shawn Alexie Eek Charlene Lupie Goodnews Bay Albert Toniak Goodnews Bay Brian Barnes Goodnews Bay Harry Martin Goodnews Bay Cheryl Smart Hooper Bay Lavinna Wilson Hooper Bay Paul Joe Jr. Hooper Bay Charlie Tall Hooper Bay Mason Nanuk Hooper Bay Louise Paul Kipnuk Kiera Mesak Kipnuk Patrick Andrew Kipnuk Eric Dock Kipnuk Deloras Lozano Kongiganak Elizabeth Otto Kongiganak Lucy Nicolai Kongiganak Joe Joseph Jr. Kongiganak Benjamin Lozano Kongiginak Charles Kanuk Kongiginak Tiffany Daniel Kwigillingok Candida Andrew Kwigillingok Herman Beaver Kwigillingok David Friend Kwigillingok Jimmy Phillip Kwigillingok Beatrice Olrun-Kiokun Mekoryuk



Marianne Williams Mekoryuk Travis Shavings Mekoryuk Caryn Dull Napakiak Rachael Nelson Napakiak David Ayagalria Napakiak Aaron Dull Napakiak Frank Andrew Napakiak Laura Evan Napaskiak Leanne Larson Napaskiak Willie Egoak Napaskiak Christopher Maxie Napaskiak Lisa Charles Newtok Jordan George Newtok Andruska Carl Newtok Sabastian Usugan Newtok James George Newtok Katie Anthony Nightmute Isadore Anthony Nightmute Simon Jumbo Nightmute Marita Stevens Oscarville Mary Hill Quinhagak Cynthia Beebe Quinhagak Wade Church Quinhagak David Hill Quinhagak Thomas Brown Quinhagak John Simon Quinhagak Priscilla Jimmie Scammon Bay Michelle Kaganak Scammon Bay George Smith Scammon Bay Mike Uttereyuk Scammon Bay Jacob Rivers Scammpn Bay Sam Chanar Toksook Bay Henry Friday Toksook Bay Thomas Julius Toksook Bay Benjamin Angaiak Toksook Bay Abraham Moses Toksook Bay Robert Enoch Tuntutuliak Darlene Enoch Tuntutuliak Zachary Enoch Tuntutuliak Thomas Friendly Tuntutuliak Aurie Hooper Tununak Anastasia Evan Tununak Marjorie Post Tununak Charlie Post Tununak Jimmy Inakak Tununak

Executive Director Director of Business Development Products/Service Manager Corporate Counsel Executive Coordinator Community Benefits Manager Community Information Coordinator Program Specialist Program Assistant Program Coordinator Program Assistant Administrative Assistant Human Resources Manager Human Resources Supervisor HR Specialist Land Operations HR Specialist Vessels Operations HRIS Administrator HR Assistant CVS General Manager Fisheries Coordinator Fisheries and Logistics Supervisor Procurement and Logistics Manager Purchasing Manager Purchasing Assistant Purchasing Assistant Purchasing Assistant Controller In-Region Accounting Supervisor Financial Analyst AP Supervisor Community Benefits Associate Cash Specialist Financial Accounting Manager Senior GL Specialist Bering Sea Accounting Manager Cost Accounting Manager Senior AP Lead Senior Cost Accounting Specialist Senior AP Specialist AP Lead AP Speicialist AP Specialist AR Specialist AR Accountant Treasury and Compliance Manager Senior Accountant Payroll Supervisor Payroll Lead Payroll Specialist IT Manager Network Administrator Network Engineer Technology Support Specialist Facility Maintenance General Manager Port Engineer Logistics Manager Human Resources Supervisor Warehouse/Purchasing Clerk Safety Manager Office Assistant

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