2022 Annual Report

Our Mission

OUR VISION

To develop thriving local economies in Western Alaska that create opportunities for current and future generations.

OUR MISSION

To be responsible stewards of all our resources; to proactively identify and pursue investments that develop those resources; and to deliver value to our communities and people.

OUR 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

Scammon Bay

OUR 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.

ALASKA

Hooper Bay

Chevak Newtok

Tununak

Toksook Bay

OUR MEMBER COMMUNITIES

Mekoryuk

Chefornak

Kipnuk

Napaskiak

Tuntutuliak

Eek

Kongiganak

Napakiak Oscarville Nightmute Kwigillingok

Quinhagak

• Scammon Bay

• Hooper Bay

• Chevak

• Newtok

• Tununak

• Mekoryuk

• Toksook Bay

• Nightmute

• Chefornak

• Kipnuk

• Kwigillingok

• Kongiganak

• Tuntutuliak

• Napakiak

• Napaskiak

• Oscarville

• Eek

• Quinhagak

• Goodnews Bay

• Platinum

Goodnews Bay Platinum

Alaskans Helping Alaskans

Resilient. This word best defines 2022 for CVRF and our communities. Resilient in the face of a historic storm that battered villages and infrastructure. Resilient during a salmon crisis that challenged longstanding subsistence needs and traditions. Resilient in balancing lower harvests with the mission to deliver programs that support the many needs of our communities.

Through all of these challenges, CVRF’s teamwork, community service, and political engagement resulted in a remarkable year of sustained programs, good financial performance, and a growing standing as sought-after leaders in our industry.

When Typhoon Merbok struck, flooding villages, damaging personal property and upending infrastructure, the CVRF staff dropped their usual roles and went into disaster response mode. Our in-region teams began surveying the damage, calling in reports, and making repairs. Our Anchorage staff, many of whom were born and raised in Western Alaska, also went to work – lining up supplies and shipping, or coordinating visits and requests with state and federal government officials at FEMA and within our Congressional Delegation. I could not be more proud of the CVRF team in this moment of need.

Throughout the year, our seafood operations team adapted seamlessly to rapidly changing conditions in the Bering Sea, and in international markets. Our budget is tied to scientifically-set harvest levels. In lower harvest years like 2022, that means fewer resources to fund programs and address every request. Nonetheless, our programs continued to deliver important benefits, and our team continued to innovate – such as our Geographic Information Mapping system to help communities plan for future construction.

Aboard the Northern Hawk, our clean fishing practices led to record low bycatch rates in 2022. Although we are aware that many factors contribute to salmon decline, chief among them a warming climate and food competition from foreign hatchery fish, we are proud to lead the industry in avoiding salmon while pursuing the sustainable pollock that funds our critical programs.

CVRF’s demonstrated support for sustainable fisheries opened doors to new leadership opportunities in 2022. Oscar Evon, a former CVRF Board Chairman from Kwigillingok who leads our regional affairs team, was tapped to serve on both the North Pacific Council’s bycatch committee and the federal Alaska Salmon Research Task Force, which our Congressional Delegation created to prioritize salmon research efforts. It’s not enough that scientists point to environmental factors instead of trawl bycatch as the cause of the salmon crisis; we want to be part of the solution no matter what caused the problem. Science will help us find answers, along with a better understanding of traditional knowledge about western Alaska salmon and the food security issues in our communities.

Finally, it should be noted every ten years the Magnuson-Stevens Act mandates that all CDQs submit to the State of Alaska a review of their programs and performance. This is known as a “Decennial Review.” In 2022, the State reviewed our performance from 2011-2020 across four criteria. CVRF earned a perfect score. The State recognized and approved of CVRF’s subsistence-oriented approach to CDQ benefits and the critical role that our mechanic/ welder shops play in our communities. The State praised our Honda ATV warranty program as an innovative and forward-thinking way to make subsistence more affordable for our residents. We also demonstrated how CDQ promotes economic activity throughout the state. Our People Propel® program has helped bring thousands of ATVs, snow machines, outboards, and other subsistence equipment to western Alaska. These items came from dealerships across the state and especially in southcentral Alaska. Through our Bering North joint venture, we homeport several vessels in Kodiak, and we pursued opportunities to improve our program delivery through new partnerships in Homer.

CVRF’s teamwork, community service and political engagement resulted in a remarkable year of sustained programs, good financial performance, and a growing standing as soughtafter leaders in our industry.

ERIC DEAKIN, CEO COASTAL VILLAGES REGION FUND

ERIC DEAKIN, CEO COASTAL VILLAGES REGION FUND

People, Employment & Fishing

communities and meeting their unique needs — today and in the future.

From Sea to Shore

At Coastal Villages Region Fund (CVRF) there is a direct link between our Bering Sea fleet and the benefits we provide to our 20 communities. In 2022, our Bering Sea fleet caught 104.8 million pounds of pollock, cod and crab and generated more than $75 million in gross revenue from sustainable seafood sales around the world.

The federal Community Development Quota (CDQ) Program, created to provide coastal Alaska communities with the “opportunity to invest in fisheries in the Bering Sea and Aleutian Islands” (16 U.S.C. 1855), directs CVRF and the five other CDQ groups to use earnings from Bering Sea and Aleutian Islands investments to support economic development, alleviate poverty, provide economic and social benefits, and achieve sustainable and diversified local economies.

In 2022, CVRF again delivered on this mission by providing $13 million of direct benefits to residents in our communities. We also expanded CVRF’s footprint through strategic acquisitions of Bering Sea and Seattle

assets. Through the purchase of a Seattle Boat Harbor property, CVRF strengthened its logistics stability when our vessels are not in Alaska, generating long-term cashflow, and providing room for future growth. It also negates the need to pay a third party for moorage, storage and offices that are key to our operations and to the generation of benefits in our region. Additionally, CVRF acquired the Bering North inshore pollock fleet, in partnership with fellow CDQ group, Norton Sound Economic Development Corporation (NSEDC).

CVRF continues to support measures to ensure the longterm health and sustainability of the Bering Sea crab resources. We participated in the bairdi crab fishery while the red king crab and opilio crab rebuilding programs are underway. Pacific cod is another important Bering Sea investment for CVRF. In 2022, we operated both the fishing vessels Flicka and Lilli Ann in the Pacific cod freezer long-line fishery, and we continue to look for ways to harvest cod more efficiently and to expand our holdings of cod quota.

Climate change is an alarming threat to the resources that support our fishery operations and to our residents’ way of life. Changing ocean and river conditions are major causes of salmon crises. Extreme weather creates flooding and erosion that impacts our housing and infrastructure. Climate change is top of mind for CVRF as we pursue responsible and sustainable growth through investments and partnerships. We do this with Alaskan values: protecting our resources and strengthening our communities for future generations.

Coastal Villages Region Fund purchased 1801 Fairview Avenue in Seattle, Washington in 2022 . The marina includes 2,770 lineal feet of dock and wharf space, two acres of uplands, and 17,000 square feet of warehouse space and another 17,000 square feet of office space. CVRF has been an anchor tenant at the property for almost a decade—and will continue to rent approximately half of the property to other tenants.

CVRF STRENGTHENS LOGISTICS CAPABILITIES

1801 FAIRVIEW AVENUE

PUGET SOUND

Caring for Alaska’s Resources

Caring for Alaska’s Resources (Continued)

CVRF was one of the first to own and operate an 100% Alaskan-owned fleet in the Bering Sea pollock, cod, and crab fisheries. As Alaskans, we are serious about our responsibility to the natural world around us and all the resources it provides and, as a result, operate one of the cleanest, most-sustainable fleets in the region. Our 161 in-region employees and board members, our crews, and over 9,000 residents know the value of every fish and how our harvests help sustain subsistence lifestyles across Western Alaska, which is why we take great care to avoid salmon bycatch.

In 2022, CVRF’s Northern Hawk reported some of the lowest bycatch rates in the industry, including the lowest

for chum salmon bycatch. We also led an industry effort to adopt more salmon-friendly practices, including avoiding areas where we know salmon are present. The Northern Hawk reduced chinook bycatch by 50% compared to 2021 and our chum bycatch was less than 10% of our 2021 rates. In all, CVRF’s total non-chinook take was 2% of the industry total. We continue to be proactive with new innovations to avoid bycatch even further, such as live underwater cameras, escapement nets, and technologies like LED lights to redirect salmon.

CVRF remains committed to leading the industry in clean, sustainable fishing, and by being a contributing member to dialogue and community-based solutions. CVRF

supported a coalition of Western Alaska subsistence and commercial fishers and mainland based CDQ groups in their emergency request to limit the interception of Yukon and Kuskokwim River chum salmon in the Area M fishery in the Aleutian Islands. We will continue to urge the Alaska Board of Fisheries to limit chum intercept in Area M and stay engaged with our regional allies on this important issue.

We want to acknowledge our company culture and vessel captains and crews for running clean fishing operations. We want to thank our director of regional affairs, OSCAR EVON, for joining the North Pacific Fishery Management Council’s Salmon Bycatch Committee to ensure our region’s voices are heard.

Industry-wide Bering Sea Chinook Salmon Bycatch

ALASKANS HELPING ALASKANS

Boots on the Ground in the Aftermath of Typhoon Merbok

On September 17, 2022, Typhoon Merbok tore through Western Alaska, bringing 50-foot waves, record-high flooding, and hurricane-force winds, which caused destruction and loss in several of the communities we serve. Newtok lost an estimated 100 feet of shoreline due to flooding. Fish camps and equipment were washed away during a key subsistence season, as families were preparing for winter. CVRF immediately went to work lining up partners to deliver aid by air, assigning employees in

the region to assess damage and make repairs, briefing the Alaska Congressional Delegation, and soliciting donations from within the fishing industry.

For CVRF Regional Affairs Manager FLORENCE KARGI, whose hometown is Hooper Bay, procuring and delivering aid was personal. She coordinated with partners like Bethel Community Services Foundation and Calista Corporation to procure more than 4,700 pounds of materials like

bottled water, toilet paper, and dry goods for delivery to Hooper Bay (one of the hardest hit communities), as well as a series of key shipments to Newtok and Chevak.

Florence and the team at CVRF enlisted the help of Alaska-based transporters such as Alaska Airlines and Northern Air Cargo, to move the goods from Anchorage to Bethel followed by Grant Air and Ryan Air for the second leg to deliver the goods to respective communities.

(Continued on page 10)

PHOTO / Bethany Hale

The Aftermath of Typhoon Merbok

For Managing Director SCOTT HABBERSTAD of Alaska Airlines, this group effort exemplifies the ethos of Alaskans showing up for Alaskans. Whether the shipments contained diapers or generators, he said, “If we could take it, we did.”

DAN KNESEK, vice president of commercial operations of regional carrier Grant Aviation, pointed out, “When there’s an emergency like this, there are very few people who can actually help. We knew that would be the case, so we made ourselves available.” Thanks to the proactive communication between other carriers and partners, Grant Aviation was able to have planes on the ground in the Yukon-Kuskokwim Delta that Sunday, a day after the storm hit. For all the airlines, this was a high-priority effort.

As Vice President and General Manager GIDEON GARCIA of Northern Air Cargo said, “Many of our staff are from rural Alaska. This is personal for them. They’re supporting their family and friends.”

Two weeks after the storm hit, CVRF completed a vital infrastructure survey, which assessed damage to airports, facilities, community stores, post offices, and power. From there, our local community service representatives (CSRs) helped with two rounds of household surveys, cataloging major individual losses and damages.

The survey was shared with SENATOR LISA MURKOWSKI, who asked CVRF to serve as an intermediary between FEMA and community members, ensuring mutual understanding of the situation and the application for relief. This open line of communication allowed us to voice concerns that needed to be addressed, such as how to help residents apply for relief electronically in areas where internet connections are slow or unavailable.

We want to thank Senator Murkowski and her team for requesting that we fill this important role for the community. We would also like to thank the State of Alaska for running a

parallel process to FEMA to provide additional relief funding to impacted residents, as well as SENATOR DAN SULLIVAN for pushing for 100% FEMA coverage.

While CVRF staff worked with government leaders, CVRF shops in Hooper Bay, Scammon Bay, and Chevak busily repaired outboards, boats, and other equipment. Our mechanics/welders (M/Ws), CSRs, and other staff both in-region and in Anchorage were vital to the success of the coordinated relief efforts, and we extend our gratitude to all involved for their tireless service and dedication in supporting their neighbors and all affected residents.

Many of our staff are from rural Alaska. This is personal for them. They’re supporting their family and friends.

GIDEON GARCIA, GENERAL MANAGER, NORTHERN AIR CARGO

Hooper Bay lost significant infrastructure, including its emergency transmitter tower and the main KCUK Radio transmitter, which meant the community was out of radio signal range. CVRF granted nearly $15,000 to be applied toward the purchase and installation of a replacement.

“We are grateful to Coastal Villages Region Fund for having a radio engineer install the transmitter in Hooper Bay, and to those who are involved in providing us support,” said PETER TULUK, Kashunamiut School District and KCUK Radio General Manager. The new transmitter is located at Hooper Bay School and will remain there for any future emergencies that may impact the Hooper Bay area.

Since 1987, KCUK Radio has served Chevak, Hooper Bay, Scammon Bay and the surrounding areas as part of the Kashunamiut School District. KCUK provides community members with essential radio programming in both English and Yup’ik/Cup’ik languages, including regional, state and national news, weather reports, emergency announcements, public health and safety announcements, entertainment and talk shows, live broadcasts of local events from high school basketball games to student productions, and educational programs that reflect the values and beliefs of the Yup’ik/Cup’ik ways of life

THANK YOU FOR YOUR SUPPORT

CVRF HELPS REPAIR KCUK RADIO TRANSMITTER

SEN. LISA MURKOWSKI, PETER TULUK and REP. MARY PELTOLA

Bethel Community Services Foundation

A Decade of People Propel ®

Successful Program Plays a Critical Role in Western Alaska

In 2022, CVRF’s most popular and enduring program celebrated its 10th year helping residents of our 20 communities. People Propel® represents the best of the CDQ program. What began as a way for fishermen to acquire better, safer gear has become a major force for economic development, obtaining access to subsistence resources, and for utilizing newer, cleaner engines to do our part to fight climate change. People Propel helps keep our residents’ incomes in our region. But it also spreads economic benefits throughout Alaska through the purchase of goods and services.

In 2006, Congress recognized CDQ regions are very different. It gave the groups flexibility to identify local needs and craft local solutions. Smaller CDQ regions use their vast per capita resources to promote commercial enterprises serving local fishermen and the Bering Sea fleets. Since

CVRF serves a much larger population, we must deliver benefits at a different scale. People Propel promotes economic development equitably and efficiently in every CVRF community. Every adult resident is eligible for help acquiring a wide range of equipment: ATVs, outboards, snow machines and skiffs are among the most popular purchases. Residents can apply online, choose their vendor, and coordinate their delivery. The program has helped teach financial literacy and encouraged banks to do business in communities they previously ignored. Through 2022, People Propel has leveraged nearly $50 million in equipment purchases for our residents from suppliers around Alaska.

Some of the top companies selling equipment through People Propel include All Seasons Honda in Homer, River and Sea Marine in Soldotna, Alaska Mining and Diving

Supply in Anchorage, and Alaska Commercial Company. These items travel to our region through countless partners along Alaska’s intermodal supply chain networks.

People Propel plays a critical role in Western Alaska by helping residents afford equipment with newer, more climate-friendly engines. The average cost of a new ATV has in some cases doubled compared to models featuring two-stroke motors. Widespread regional adoption of new, low-emission equipment that helps fight climate change would not be possible without People Propel.

As our region’s population continues to grow, CVRF strives to support our residents efficiently and effectively in ways that maximize CDQ’s value and contribution to our communities.

People Propel® Awards (2013-2022)

TEN YEARS OF PEOPLE PROPEL®

In the first ten years of People Propel® which began in 2013, there have been 14 rounds providing assistance to an average of 405 residents each round.

$16,076,445 CVRF CONTRIBUTION

$48,612,838 EQUIPMENT VALUE

5,671 INDIVIDUALS

People Propel® directly facilitates the independent Alaskan way of life, enabling our community to continue subsistence fishing, hunting and other vital activities such as traveling between villages or keeping equipment safe and protected from extreme weather conditions.

EVAN S. EVAN, CVRF BOARD MEMBER GOODNEWS BAY

PEOPLE PROPEL® 2013-2022

EQUIPMENT CATEGORY BREAKDOWN

The People Propel® program has had a very positive impact not only on my business, but on our customers’ day-to-day lives. We’ve been able to help more people than ever before.

REED MILLER, REED’S SNOWMACHINE & MARINE INC., FAIRBANKS

Resilient Community Benefits

GIS Mapping Project Reaches 55% of Communities and Counting

When the COVID-19 pandemic resulted in lockdowns starting in early 2020, it severely impacted our ability to deliver much of the in-person programming we’d spent years developing. Recognizing this, we quickly restructured several of our existing programs to be able to deliver them remotely. However, we also turned our attention to explore new opportunities to help our communities in ways that would be impervious to the impacts of “work from home” and persistent lockdowns.

One of the key initiatives we started then was a training program to develop our ability to manage digital mapping of community infrastructure through Geographic Information Systems, or GIS. We are filling a critical data gap, so that local government decision-makers have easy access to information that will help them plan for future improvements

or construction. Three years into our project, we have an internal project leader in Toksook Bay, two more staff training to be technicians, and we have established a partnership with technical experts at a company called Akmapco. As federal grant money for infrastructure is announced, we’re proud to be building informational resources our communities can use to help attract funding to their regions.

The mapping project gathers data from multiple sources with the goal of creating a multi-layered map of every community CVRF serves. A project team led by RODERICK ATTI has been collating infrastructure data and layering it over topographical maps to provide a comprehensive view of the existing roads, utilities, and other facilities in all our communities. JANELLE CARL , a community benefits

coordinator, helps to map Kipnuk, where she lives and works, while overseeing data entry to ensure the project produces an accurate map.

The GIS team began the project with land parcels and ownership details mapped by the state of Alaska before and up to 2004. While the state was unable to continue their work on the maps after that year, Roderick and his team began updating the dataset to include new development since then. This work enables future infrastructure projects like fiber optic internet connections. To date, the team has piloted GIS mapping in 11 communities: Chevak, Toksook Bay, Tununak, Mekoryuk, Napaskiak, Oscarville, Nightmute, Chefornak, Hooper Bay, Scammon Bay, and Newtok (Mertarvik).

RODERICK ATTI, TOKSOOK BAY

JANELLE CARL, KIPNUK

Captains in the Making

CVRF’s Youth to Work Maritime Program

Today, when you look at the demographics of crew members on vessels in the Bering Sea and Gulf of Alaska fisheries, relatively few are Alaska Natives. As the operator of a 100% Alaskan-owned fishing fleet, CVRF founded the Youth to Work Maritime (YTWM) program to offer local Alaska Native youth opportunities for training and experience in this vibrant industry. In its third year, the program provided basic skills training and maritime education to 24 students.

This innovative maritime curriculum teaches students how to tie key and often life-saving knots, what to do in the event of an emergency, what the different stations and roles are on ships, how to navigate, and more. KRISTEN MAXIE of Napaskiak said of YTWM, “It helped me see that there are other job opportunities available. I could be a cook on a ship. I have options.” She now plans to attend the University of Alaska Fairbanks to study wildlife biology and conservation.

For CADENCE DULL of Toksook Bay, the YTWM program was a means to pursue her dual dreams of becoming a ship captain and an aviator. “My favorite part was learning how to plot the ship’s course using longitude and latitude,” she said. She brought what she learned about tying knots and reading maps home to teach her friends and family. After graduating high school, she plans to take a year off before college to work and pursue aviation training.

CVRF provided additional employment and training opportunities through its Youth to Work (YTW) program. A total of 491 youth from 16 communities participated in the YTWM and YTW summer programs in 2022.

CADENCE DULL

KRISTEN MAXIE

If you’re unsure what to do after high school, CVRF’s Youth to Work Maritime program will really open your eyes and help you figure out what you want to do.

KRISTEN MAXIE, NAPASKIAK

Virtual Reality-Enabled Workforce Pathway

Pandemic Inspires Creative Training Experiences for Summer Youth Programs

For several years, CVRF has been building a workforce development pathway leading to employment in the maritime sector, beginning with Youth to Work. Before the pandemic, much of this pathway relied on travel-based experiences. For example, youth would travel to Seattle to visit the Northern Hawk at port, to Dutch Harbor to see our fishery efforts in action, and top vocational schools like the Alaska Vocational Technical Center (AVTEC) in Seward and the Seattle Maritime Academy. All travel ground to a

halt when the pandemic hit our region. We put the Ciuneq program and our Marine Basic Training partnership with AVTEC on hold. We suspended the Dutch Harbor visits that we’d previously offered through our internship program.

To help fill the void left by these important programs, we invested in a partnership with Designori, an Alaska-based company that creates training experiences in a virtual reality (VR) environment. In 2020, they helped us create

a digital replica of the factory on the Northern Hawk and turn it into an operational training environment. We plan to deploy this training into our summer youth programming in 2023, giving youth the opportunity to explore our largest vessel without ever having to travel out of their community. And as the pandemic has receded, we’ve begun exploring how to re-introduce some of our travelbased programming to work in concert with this emerging VR content.

RODERICK ATTI

Helping You Reach Your Goals

CVRF’s

Scholarships Fund Youth Education

CVRF has always been committed to helping our communities grow. Since 1993, CVRF has awarded the Louis Bunyan Memorial Scholarship (LBMS) to current or soon-tobe-enrolled students in university, college, or vocational programs. The minimum GPA required to qualify is 2.0. The higher the applicant’s GPA, the greater the chance of qualifying for the maximum available funding – $4,000 per semester.

Over the spring and fall of 2022, CVRF distributed $293,000 in scholarship funding. This funding has been instrumental in helping a generation of students complete their education and pursue their goals.

THEODORA “JERE” SIPARY, who attends the University of Alaska Fairbanks majoring in social work, grew up wanting to make the world a better place. Through scholarships like this one, which she earned her senior year of high school in 2021, she’s been able to follow that passion into her work in college. “(Receiving the scholarship) made me feel welcomed and like I was supported by CVRF. It made me focus more on work than my financial problems, and it pushed me more into looking toward my future.”

IN MEMORY OF KAYLA KUGTSUN

Kayla grew up in the village of Kwigillingok as one of four siblings. They unfortunately lost their mother, leaving her father and extended family to help raise the children. Her father, Andrew Kugstun said, “I pushed all my kids to pursue higher education. Don’t give up, you can go far.” Despite grieving, Andrew knew it was important to set an example for his children to keep moving forward. Their family turned tremendous adversity into opportunity.

Kayla interned at CVRF in 2017, 2018, and 2019 while pursuing higher education, and in 2022 she received a bachelor’s of business administration from the University of Alaska Fairbanks. Kayla also was a student at the Community & Technical College while working in the human resources department at the University of Alaska.

The CVRF team was saddened to learn of Kayla’s passing in April 2023. The CVRF pathway provided Kayla with an opportunity for her to walk with us through the internship program, and her footprints remain on our heart. Rest in peace.

JERE SIPARY

I encourage youth in the region to apply for college or a summer internship because that will help you get a jump-start in your career.

KAYLA KUGTSUN, KWIGILLINGOK

Discovering Your Future

CVRF’s Internship Program

New Roofs Over Our Heads

CVRF’s Rural Housing Program

In the midst of the ongoing housing shortage in Western Alaska, CVRF has developed a reliable, reproducible process for helping residents in our communities to finance new homes. This enables us to assist program participants with the lengthy process of buying a home, including surveying the land and completing applications for loans and subsidies. In 2022, CVRF completed work on two houses now owned by RODERICK ATTI and CHERYL LINCOLN, who were happy to move into each of their new homes in December.

CVRF would like to thank the many partners involved in this process, including the Bureau of Indian Affairs (BIA), U.S. Department of Agriculture (USDA), U.S. Department of Housing and Urban Development (HUD), Nunakauiak Yup’ik Corporation (NYC), Nunakauyak Traditional Council (NTC), and other community organizations and members. This would not be possible without the collaboration and support of many individuals and groups committed to addressing the housing shortage.

Figuring out who you are and what you want to do with your life is always a challenge for teens, especially in rural areas like Western Alaska. To provide our region’s youth with opportunities to explore new interests and develop professional skills, CVRF offers an annual internship program that includes training, mentorship, and education in an office environment. In the summer of 2022, CVRF brought on seven interns who earned $44,786.80 in total wages.

This program provided DESIREE CLEVELAND of Quinhagak with the flexibility needed to both build professional skills in communication, collaboration, and time management, while also participating in cultural and subsistence activities in the summer. Her experience led her to discover she loves working with youth and aspires to become a teacher. After she graduates from the University of Alaska Fairbanks with a degree in interdisciplinary studies, she plans to return to Western Alaska to teach math to high school students.

DESIREE CLEVELAND

ROBERT ANTHONY and CHERYL LINCOLN

Globally Connected, Local Leadership

Our community-based staff drive our mission forward. In 2022, the CVRF programs department hosted 45 positions across our region. In partnership with CVRF staff located in Anchorage and Seattle, this team used profits from Bering Sea operations to provide a wide range of program and employment opportunities to our residents. Their work was driven by five community managers, and seven coordinators, in charge of developing and administering the company’s community benefits. This team worked hand in hand with a 44-person team of mechanics and regional affairs staff located in our communities to serve our people with programs to support our elders, heating fuel distribution, as well as internship and scholarships programs and other projects. We sponsored the Alaska Business Development Center, which sent tax preparers to our communities and helped 2,001 people prepare 1,634 returns and helped secure about $4.5 million in tax refunds.

FEEDING OUR COMMUNITIES

For the last two years, the Alaska Department of Fish and Game has closed Subsistence fishing in our region which has significantly restricted our resources. When full closures hit Scammon Bay, Hooper Bay, and Chevak in 2022, CVRF moved quickly to ship 10,600 pounds of high-quality Bristol Bay salmon to the communities. A total of 424 households received approximately 20 pounds of fish each. Some households allowed their shares to be given to elders.

Financial Disclosures

COMMITTEES AND COMMITTEE MEETINGS

The CVRF Bylaws create a CVRF Executive Committee consisting of seven members: the CVRF Board President, Board Vice President, Board Secretary, Board Treasurer, and three at-large CVRF Board members. The CVRF Executive Committee may exercise all authority of the full CVRF Board in managing CVRF, except for the election of CVRF officers and Executive Committee members.

The CVRF Bylaws also authorize the Board President, with affirmation from 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 several committees comprised of members of the Board of Directors:

• A Policy/Compensation Committee to make recommendations to the Board on CVRF policies.

• A Finance Committee to advise the Board on budgeting and financial matters.

• A Regulatory and Legislative Committee to provide the Board with information about issues of interest to CVRF.

• A Programs committee to advise on new program initiatives and to review community requests for funding.

• A Fisheries Committee to review and advise on fishing issues directly impacting our communities including fisheries investments, by-catch, and subsistence related matters.

• An Election Committee to advise the company on policies and procedures related to community Board member elections.

• A Disciplinary Committee to make recommendations to the Board on a myriad of topics related to Board member dynamics.

For CVRF’s subsidiaries (CAPS, CVP, CVC, CVL, CVE, and CVS), CVRF has established subsidiary boards.

CVRF committees and subsidiary Boards are comprised of members of the Board of Directors and met either in person or via electronic conferencing as appropriate throughout 2022.

• The full board met four times during 2022: March 15, May 3, October 23, and December 6.

• The CVRF Executive Committee met seven times: January 13, January 31, July 7, August 4, November 22, December 8, and December 22.

• The six subsidiary Boards (CAPS, CVP, CVC, CVL, CVE, and CVS) met in December 2022 for their annual meetings.

• The Policy and Compensation Committee did not meet during 2022.

• The Disciplinary Committee did not meet during 2022.

• The Finance Committee did not meet during 2022.

• The Election Committee met once on November 29.

• The Fisheries Committee met once on April 20.

• The Programs Committee met two times, on March 9 and April 20 during 2022.

• There were numerous informal meetings and teleconferences with the Board President/Vice President and the Administration.

AUDITOR AND AUDITOR RELATIONSHIP

CVRF has not had any disagreements with its auditors (KPMG) in any year, including 2022. CVRF received nonaudit services from its auditors in 2022 and paid KPMG $175,850 for audit, tax, and other consulting services.

COMPENSATION TO KEY CVRF PERSONNEL AND RELATED PARTY TRANSACTIONS

The federal CDQ statute 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 Panel rule requiring the disclosure of the “total amount…received by each such individual.” CVRF has always reported the total amount paid to the company’s top five personnel, whether they are office staff or crew members. Starting with the 2012 annual report, CVRF expanded its report to include the company’s top 10 personnel.

The CVRF Board of Directors works closely with Company leadership and is pleased with the results that the personnel in the company have helped deliver to our communities. CVRF maintains its commitment to hiring and retaining the best personnel available to benefit our stakeholders and residents.

The Board follows IRS Rebuttable Presumption of Reasonableness guidelines in calculating the salaries for its top executives, a process completed by an independent contractor, which includes comparisons with salary levels at other similar companies.

Financial Disclosures (Continued)

For 2022, the top 10 highest paid positions earned the following:

Eric Deakin, CEO, base salary $378,955, bonus $134,000; Thomas Hindermann, Pollock Vessel Chief Engineer, base salary $404,177; Michael Coleman, Bering Sea Operations Manager, base salary $312,842, bonus $60,000; John Reines, Pollock Vessel Chief Engineer, base salary $364,801; Michelle Drew, CFO, base salary $301,454, bonus $50,000; James Egaas, Pollock Vessel Captain, base salary $295,991; Nicholas Souza, Director of Sales & Marketing, base salary $244,521, bonus $30,000; Terje Gjerde, Pollock Vessel Factory Manager, base salary $252,030; Owen Kvinge, Crab Vessel Captain, base salary $241,524; Chuck Velasco, Longline Vessel Captain, base salary $239,081

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.

CVRF’s Board compensation policy was adopted in June 2004 after consultation with independent experts. The policy stipulates that any changes must be approved by an independent body. The policy was last updated in January 2011 and approved by the independent authorized body comprised of an independent member of each community. The CVRF Board compensation policy is in full compliance with IRS Rebuttable Presumption of Reasonableness guidelines.

During 2022, CVRF paid its Board members $603,930 in salaries, stipends, and benefits.

RELATED PARTY TRANSACTIONS

None of CVRF’s employees or Board members have a financial relationship with any partners who lease or harvest CVRF’s quotas. Related party transactions with Board members include employee payroll:

Father-in-law: M/W Manager ($147,214)

Daughter: CSR ($26,400)

Spouse: Winter Watchman ($12,000)

Daughter: Community Benefits Accountant ($62,742)

LEGAL PROCEEDINGS INVOLVING DIRECTORS

CVRF was not engaged in any litigation with any of its directors during 2022.

PROFESSIONAL FEES

In 2022, CVRF paid the following fees for professional services: (1) $537,847 in legal fees; (2) $1,172,326 in consulting fees; (3) $197,350 in accounting fees; and (4) $301,812 in lobbying fees.

Financial Disclosures (Continued)

Coastal Villages Region Fund has earned $1.76 billion in cumulative revenue over the last 25 years.

Consolidated Statements of Financial Position

DRAFT 7/21/23 12:35 PM p21 & 23. Audited FS schedules_6.2.23-with-edit.xlsx

DRAFT 8/30/22 8:58 AM p21 & 23. Audited FS schedules.xlsx

Coastal Villages Region Fund & Subsidiaries

2021

(Balance Sheet)

75%

See accompanying notes to consolidated financial statements.

Consolidated Statements of Activities (Income Statement)

Coastal Villages Region Fund & Subsidiaries

YEARS ENDED DECEMBER 31, 2022 AND 2021

See accompanying notes to consolidated financial statements.

See accompanying notes to consolidated financial statements.

See accompanying notes to consolidated financial statements.

Board of Directors

The Board of Directors plays an important role at CVRF, serving as the governing body that steers the vision, mission, values, and policies of the organization. Most importantly, members of the Board provide a critical link between community members and CVRF.

THE ROLE AND FUNCTIONS OF THE BOARD

CVRF’s Board of Directors is responsible for governing CVRF’s affairs. The Board makes broad policy decisions and sets organizational goals that the staff carry out. The primary functions of the Board are to act in the best interests of the company and the Coastal Villages region. These functions enable the organization to achieve its purpose of providing the means for development by creating sensible, tangible, long-term solutions for the residents of CVRF’s 20 member communities. The Board makes decisions that balance growth in commercial fishing and sustainable development in CVRF communities.

The Board accomplishes this oversight by staying up to date about CVRF’s activities and communicating appropriate information to residents.

ARCHITECTS OF THE DREAM

CVRF continues to appreciate the sacrificial efforts of the founding fathers who saw the potential of participating in the Bering Sea fisheries to provide benefits and hope for our region’s residents. We are proud of the achievements to date that fulfills their vision of delivering opportunities for our youth to become airline pilots, teachers, social workers, welders, and many other professions.

CVRF would also like to thank community leaders who have served on the company’s Board of Directors, past and present. CVRF is grateful for their many contributions while serving on the Board.

SHAPING THE FUTURE

CVRF would also like to acknowledge the contributions that sitting Board members made in 2022. Board members provided valuable guidance and oversight that helped move CVRF closer to achieving some of its long-term goals. CVRF staff thank the Board for advocating for their communities throughout the region in 2022.

COMMUNITY ELECTIONS

CVRF’s Board of Directors is made up of democratically elected representatives from each of our 20 member communities. Board members serve six-year terms, and elections for one-third of the Board take place every two years. All Board members must be permanently domiciled residents of the communities they are representing, meaning that the Board member must have permanent residency and plan to remain a resident. Elections are run under a standardized democratic process, working directly with the local governing body, designed to give a fair voice to all residents of each community.

One special election took place in 2022. CVRF welcomed Steven M. Alexie of Napaskiak to the Board of Directors.

2022

Board of Directors

LARSON HUNTER CHAIRMAN SCAMMON BAY

JOHN SAMUEL SECRETARY PLATINUM

CARLIE BEEBE EXEC COMMITTEE EEK

GEORGE CHUCKWUK EXEC COMMITTEE KIPNUK

EDWARD KINEGAK CHEFORNAK

ERIC OLSON, SR. HOOPER BAY

ANDREW KIUNYUA KWIGILLINGOK

XAVIER JOHN NEWTOK

NICHOLAI STEVEN OSCARVILLE

CLARENCE DULL TOKSOOK BAY

RICHARD JUNG VICE CHAIRMAN NAPAKIAK

GABRIEL OLICK TREASURER TUNTUTULIAK

WAYNE SCHOUTEN GOODNEWS BAY

STEPHEN M. ALEXIE NAPASKIAK

ALFRED ULROAN CHEVAK

JERRY IVON KONGIGANAK

ALBERT WILLIAMS EXEC COMMITTEE MEKORYUK ISADORE ANTHONY NIGHTMUTE

JOHN W. MATTHEW QUINHAGAK

ALMA KANRILAK TUNUNAK

The Board of Directors plays an important role at CVRF, serving as the governing body that steers the vision, mission, values, and policies of the organization.

2023 Board of Directors

LARSON HUNTER CHAIRMAN SCAMMON BAY

2022 - 2027

RICHARD JUNG VICE CHAIRMAN NAPAKIAK

2018 - 2023

JOHN SAMUEL SECRETARY PLATINUM

2020 - 2025

GABRIEL OLICK TREASURER TUNTUTULIAK

2020 - 2025

CARLIE BEEBE EXECUTIVE COMMITTEE EEK

2018 - 2023

GEORGE CHUCKWUK EXECUTIVE COMMITTEE KIPNUK

2022 - 2027

ALBERT WILLIAMS EXECUTIVE COMMITTEE MEKORYUK

2020 - 2025

ROBERT PANRUK CHEFORNAK

2022 - 2027

ALFRED ULROAN CHEVAK

2022 - 2027

EVAN S. EVAN GOODNEWS BAY

2022 - 2027

ERIC OLSON, SR. HOOPER BAY

2019 - 2023

JERRY IVON KONGIGANAK

2018 - 2023

ANDREW KIUNYA KWIGILLINGOK

2020 - 2025

LISA CHARLES NEWTOK

2020 - 2025

ISADORE ANTHONY NIGHTMUTE

2022 - 2027

NICHOLAI STEVEN OSCARVILLE

2018 - 2023

JOHN W. MATTHEW QUINHAGAK

2020 - 2025

SAM A. CHANAR TOKSOOK BAY

2018 - 2023

ALMA KANRILAK TUNUNAK

2020 - 2025

VACANT NAPASKIAK

2020 - 2025

BOARD OF DIRECTORS

A Message from the Chairman

New challenges tested our region, our residents, and our resolve in 2022. With Typhoon Merbok making landfall in September, flooding displaced homes and washed away vital boats, motors, and gear that many rely on during the fall gathering season. Disaster response is not part of CVRF’s formal mission, but our staff rose to the occasion to provide aid to some of our most devastated communities. Sen. Lisa Murkowski and Rep. Mary Peltola, along with CVRF staff, flew to Hooper Bay and Chevak to witness the aftermath first-hand and meet with residents. I would like to recognize all our staff for their efforts and highlight the quick leadership of our executive director. Climate change is not going away, and we remain on the front lines facing rising water levels, erosion, and increasingly severe storms like Typhoon Merbok. We continue to build on this experience and ready ourselves as a resource to our community should crisis strike again.

Last year marked a pivotal moment in CVRF history, as it capped a decade of growth and maturity. We submitted our decennial review to the State of Alaska for the period between 2010 and 2020. CVRF began that decade as an industry partner leasing quota and finished it as the sole owner and operator of our pollock, crab, and cod vessels and quotas. We are still the only CDQ group to do so. In the same period, we grew from primarily an Anchorage-staffed operation to having facilities and full-time staff in the majority of our 20 communities. We created more jobs and delivered more benefits throughout our region. We’ve added more western Alaskans to our headquarters staff in Anchorage, too, where they are taking on senior roles. Coming from the region with ties to our culture and traditions, they provide valuable insights that guide our operations and strategic direction.

My experience with CVRF began when we were just beginning to provide meaningful in-region services. I began my journey as a deck hand on a partner vessel, fishing for pacific cod in the late 1990s. I attended college with the help from the CVRF scholarship program in the early 2000s. After school, I sought office experience, so I applied for an internship with CVRF in the spring of 2004. My internship turned into a full-time job, first with Coastal Villages Seafoods and later as the quota manager. I returned to Scammon Bay to start my family in 2010, but my passion for CVRF’s mission stayed with me. I won a board seat in 2016 and now I am blessed to write to you as chairman and a servant to our people, with the desire to grow the company and our programs in the years ahead.

As I have grown and learned from CVRF, CVRF has grown too. What started with a single community service center is now a network of shops and facilities in almost every village. We employed approximately 20 staff in Anchorage, and even fewer in the region in the early 2000s. Today, we employ 161 in-region staff and board members across our 20 communities and Anchorage. We plan to continue this impressive growth so we can do more for our people by providing new jobs, infrastructure support, and other opportunities we’ve yet to discover.

We will continue to meet hurdles head on and work to grow the company so our communities thrive. We owe much to our predecessors on the board and in the company who have stewarded this growth. With dedication and commitment, we can build on their success, and expand CVRF’s role to bring more services to our region.

We will continue to meet hurdles head on and work to grow the company so our communities thrive. We owe much to our predecessors on the board and in the company who have stewarded this growth.

LARSON HUNTER, CHAIRMAN COASTAL VILLAGES REGION FUND

LARSON HUNTER, CHAIRMAN COASTAL VILLAGES REGION FUND

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