2023 CVRF Annual Report by Coastal Villages Region Fund

COASTAL VILLAGES REGION FUND 2023 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

Hooper Bay

Chevak

Newtok

ALASKA

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.

OUR MEMBER COMMUNITIES

Tununak Toksook Bay Napaskiak Tuntutuliak Quinhagak Eek Kongiganak Napakiak Oscarville Nightmute Kwigillingok Chefornak Kipnuk

Goodnews Bay Platinum Mekoryuk

• Scammon Bay

• Hooper Bay

• Chevak

• Newtok

• Tununak

• Mekoryuk

• Toksook Bay

• Nightmute

• Chefornak

• Kipnuk

• Kwigillingok

• Kongiganak

• Tuntutuliak

• Napakiak

• Napaskiak

• Oscarville

• Eek

• Quinhagak

• Goodnews Bay

• Platinum

The Challenges We Face Together

I am pleased to share the Coastal Villages Region Fund annual report for 2023 with our 9,091 residents, as well as with the larger community of stakeholders in government and industry who take an interest in how we fulfill our federally mandated mission as a non-profit Community Development Quota (CDQ) organization. Our non-profit status means our primary mission is to utilize the revenues from our fishing quota to serve the needs of our 20 Western Alaska communities, who in turn govern the decision-making about our fishing operations and community programs.

CVRF is proud to be the first and still the only CDQ group to wholly own and operate its own global seafood business. Our investments allow us to create greater value from our CDQ allocations, but we also enjoy unique challenges. Foremost among them is aligning a cyclical seafood business with the steady demand for jobs and benefits programs in our communities. In just the last three years, CVRF has enjoyed its best financial year ever in 2021 and one of its most challenging years in 2023. We understand and expect fluctuations in our business, in things like currency valuations and changing harvest levels. Even the closure of the opilio crab fishery, while unexpected, is not outside the norms of the seafood business. However, U.S. seafood producers now face an unprecedented threat in global markets: Vladimir Putin’s Russia.

Russia has responded to global sanctions over its invasion of Ukraine by waging economic warfare where it can and, unfortunately, it has identified our U.S. seafood sector as an easy target. Russia is rapidly expanding its harvesting capacity for pollock and cod and increasing its salmon hatchery releases into the Bering Sea, where Russian hatchery fish compete for food with wild Alaska chums from the Yukon and Kuskokwim Rivers.

Russia has also convinced the Marine Stewardship Council (MSC) to certify its pollock fishery as ‘sustainable, wild caught Alaska’ despite not requiring the intense, in-person audits that allowed MSC to develop its global sustainability brand. Russia is even stealing Alaska’s valor: Russian brands its product “Alaska pollock” wherever it can. Unwary consumers in Europe and Asia are feeding the Russian war machine, tricked into the belief they are providing their families sustainably harvested Alaska seafood. Meanwhile, our Western Alaska communities and America’s most successful environmental justice program, CDQ, are becoming among the biggest losers in this international struggle.

Thankfully, our political leadership is responding. SENATORS LISA MURKOWSKI and DAN SULLIVAN and COMMISSIONER

DOUG VINCENT-LANG have written directly to the Marine Stewardship Council about their lax treatment of Russian fisheries. Senator Sullivan has highlighted the Alaska seafood’s industries struggles to the highest levels of government, organizing meetings with Cabinet-level officials and even convincing the G7 nations to formally criticize Russia’s actions in the seafood sector. CDQ leaders strongly support their efforts and will continue to work with them as the U.S. government pushes back on Moscow and leans on our allies to do the same.

I am confident the economic crisis in seafood will pass in time. Our challenge is to maintain jobs and deliver benefits in our communities while taking advantage of new investment opportunities when we can. Our focus remains on minimizing bycatch, harvesting our catch in a safe and efficient manner, and delivering benefits that serve the needs of our residents – not just for today, or this year, but for generations. That means making smart investments, returning more of the fishery to Alaskan hands, and protecting the resource for generations. CDQ is here for the long term, and CVRF is leading the way.

Our focus remains on minimizing bycatch, harvesting our catch in a safe and efficient manner, and delivering benefits that serve the needs of our residents – not just for today, or this year, but for generations.

CEO

ERIC DEAKIN,

COASTAL VILLAGES REGION FUND

ERIC DEAKIN, CEO

COASTAL VILLAGES REGION FUND

People, Employment & Fishing

From Sea to Shore: Sustaining Communities By Driving Growth

At Coastal Villages Region Fund (CVRF), our Bering Sea fleet is directly connected to the benefits we bring to our 20 communities. In 2023, our fleet harvested over 115 million pounds of pollock, cod, and crab, generating more than $70 million in gross revenue through sustainable seafood sales worldwide.

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

In 2023, CVRF continued to deliver on this mission by providing $13.6 million in direct benefits to residents in our communities. The purchase of All Seasons Honda

and Peninsula Ski-Doo in Homer, for example, expands essential equipment acquisition, repair and services for our communities. This is a critical resource that supports dayto-day, subsistence-based life in Western Alaska.

CVRF also began investing in the renovation of our Fairview Marina property in Seattle, which we purchased in 2022, in order to improve its environmental efficiency and footprint. Upgrades in 2023 included rainwater and runoff filtration systems to help prepare for larger enhancements in 2024.

Our strategic investments continue to deliver strong value. In 2022, CVRF, in partnership with CDQ group Norton Sound Economic Development Corporation acquired Bering North, an inshore pollock fleet. Together with our preexisting in-shore Pollock partnership BSAIP, these investments provided combined earnings of $4 million in 2023 which has contributed directly to programs and benefits for our communities.

In 2023, CVRF operated the Flicka, North Sea, and Northern Hawk, participated in three Bering Sea fisheries— Pollock, Cod, and Crab, and continued leasing groundfish quotas for other species. As always, CVRF remains committed to promoting initiatives that guarantee the longterm health and sustainability of Bering Sea resources.

Climate change poses a serious threat to the resources vital to our fishery operations and the way of life for our residents. Evolving ocean and river conditions are key contributors to salmon crises. Extreme weather events like Typhoon Merbok in 2022 lead to flooding and erosion, which, as our residents and communities know firsthand, affect our housing and infrastructure. At CVRF, addressing climate change is a priority as we seek responsible and sustainable growth through our investments and partnerships. We are guided by Alaskan values: preserving our resources and fortifying our communities for future generations.

Caring for Alaska’s Resources

107.26

1 CHINOOK INDIVIDUAL FOR EVERY THAT’S

220,690 CHINOOK SALMON. IN ALL OF 2023, THE NORTHERN HAWK HARVESTED AND 486 MILLION POUNDS OF POLLOCK

OF POLLOCK POUNDS

Caring for Alaska’s Resources

CVRF was among the first to own and operate a 100% Alaskan-owned fleet in the Bering Sea’s pollock, cod, and crab fisheries. As Alaskans, we share responsibility for sustaining our natural resources for generations, as well as assuring continuation of subsistence traditions. Consequently, we operate one of the cleanest fishing fleets in one of the most sustainable fisheries in the world. Our more than 9,000 residents, our 157 in-region employees and board members, and our crews all understand the value of every fish. While we must acknowledge the outsized impact of climate change and foreign hatchery fish on low salmon abundance in Alaska, CVRF is proud to lead the industry with some of the lowest bycatch rates, and we continue to invest in new technologies and programs to drive it even lower.

In 2023, CVRF’s Northern Hawk reported some of the lowest bycatch rates in the fleet, including a rate of one chinook per 220,690 pounds of pollock. We continued to encourage industry-wide initiatives to implement more salmon-friendly practices, such as steering clear of areas known to have salmon, as well as the use of live underwater cameras, escapement panels and technologies like LED lights. The Northern Hawk salmon bycatch rates were slightly higher than our fleet-leading 2022 rate, but still far better than the average. CVRF’s chum bycatch was 0.67% of the industry’s total, while we cuaght nearly 4% of the pollock.

CVRF is a dedicated leader and contributor to dialogue and community-based solutions around salmon bycatch. In 2023, CVRF became a supporting member of the Alaska Pollock Fishery Alliance, a coalition of fishery stakeholders whose mission is to promote and protect responsible, science-based management of the Alaska pollock fishery. We will continue to share our data and insights with industry organizations working to lower bycatch, and stay engaged with our regional allies to find more solutions to this important issue while also protecting the critical programs and jobs that are directly supported by fishing revenues.

We want to acknowledge our corporate staff, vessel captains, and crews for running clean fishing operations. We want to thank our chief operating officer RUDY TSUKADA for joining the North Pacific Fishery Management Council after nomination by GOV. MIKE DUNLEAVY and approval from the U.S. Secretary of Commerce; as well as our director of regional affairs OSCAR EVON for joining the National Oceanic and Atmospheric Administration (NOAA)’s Alaska Salmon Research Task Force. We also want to thank our regional affairs manager FLORENCE KARGI for testifying to the U. S. House Committee on Natural Resources, Subcommittee on Oversight and Investigations, on an ill-informed Bering Sea sanctuary designation proposal; as well as our regional affairs coordinator KATIE KASHATOK for testifying to the North Pacific Fishery Management Council on chum bycatch management efforts in the Bering Sea. Each of these endeavors ensures our region’s voices are heard, and facts and science remain part of the dialogue on important decisions.

Industry-wide Bering Sea Chinook Salmon Bycatch

NUMBER OF CHINOOK SALMON (2003-2023)

SOURCES: NOAA Fisheries https://www.ﬁsheries.noaa.gov/sites/default/ﬁles/akro/chinook_salmon_mortality2024.html

Bering Sea Chum Salmon Bycatch

GENETIC COMPOSITION ESTIMATE (2023 B Season Pollock Fishery) TOTAL CHUM CAUGHT: 111,698

& Asia (76,848)

SOURCE: NOAA Report to the North Paciﬁc Fisheries Management Council, April 2024* *Values derived from applying mean proportion for each stock group to the total pollock B season chum catch of 111,698.

People Propel ® Puts $50 Million into Western Alaska

When we launched the People Propel® program, we wanted to help people obtain new products to balance work, life, and subsistence lifestyles. In 2023, we achieved a major milestone: People Propel has infused $50 million into CVRF’s 20 communities for equipment critical to daily life in our villages since its beginning in 2012.

COLTON ULROAN of OSCARVILLE has participated in the People Propel program twice and purchased an outboard and snowmachine. “Without the snowmachine and outboard, I would still be following people around to go subsistence hunting without going on my own,” Colton said. “Without the motor and boat, I would have to borrow my dad’s; sometimes he would say no and sometimes he’d say yes. Now that I have my own boat and motor, I am able to go anytime I want.”

With the money he saved through People Propel, Colton was also able to buy more accessories for his snowmachine, including an upgraded windshield and gas can for the Ski-Doo, and has used his machine for halibut fishing, logging in the Yukon, helping people get to Kong, and hunting in the spring. “It’s really nice and helpful that People Propel is offered to us. It really takes a decent chunk of the price of what we’d want to get,” Colton said.

The equipment People Propel is able to provide our residents directly supports subsistence lifestyles and food security, increases safety, drives Alaska’s statewide economy, and advances a cleaner, greener environment. This year, 574 residents applied for assistance through People Propel, 258 residents purchased $3.2 million in equipment, and CVRF contributed $1 million towards the cost of the equipment.

“This year was my first time with People Propel. Quyana for the help,” said THOMAS ALBERT of TUNUNAK who was able to purchase a snowmachine. “It’s not helpful just for me, my brother uses the snowmachine too for subsistence hunting while I’m at work. It helps out my family with subsistence – seal hunting, ptarmigan hunting, geese hunting. I’m able to travel to go see my family,” Thomas said. “Quyana to People Propel for the help.”

With the savings he had from participating in the program, Thomas was able to buy fuel and contribute to other expenses. He also bought tree line wood, which residents aren’t able to get easily in Tununak, so he was able to buy extra to share.

It’s not helpful just for me. It helps out my family with subsistence: seal hunting, ptarmigan hunting, geese hunting. Quyana to People Propel for the help.

THOMAS ALBERT TUNUNAK

DAVID ANDREW NAPAKIAK

People Propel ® (Continued)

People Propel is designed to provide all CVRF residents the opportunity to benefit from CVRF’s fishing operations and CDQ mandate. The program covers 30% of the cost of equipment crucial for living in remote villages: ATVs, appliances, outboards, snow machines, heating systems, boats, trailers, and more.

“Throughout the years, I’ve worked with a large number of customers from around the state of Alaska. Every time I get asked if we work with CVRF, I happily say yes,” said KYLE MALAMUTE of GALENA and current salesman at Compeaus in FAIRBANKS. “I know this program is there to benefit the people of the region and I know firsthand how important snowmachines, boats and ATVs are in the villages. They are not toys—they are an essential tool needed for everyday life.”

Every adult resident in CVRF’s 20 communities can apply to the People Propel program. In addition to helping residents establish and build credit, People Propel supports millions of dollars in purchases of newer, cleaner, and safer equipment to the region and continues the growth of Alaska’s statewide economy.

“I have seen the People Propel program vastly improve the lives of residents in rural Alaska. Many of the customers I serve cannot afford big-ticket essential goods and materials like appliances. They wait every year for the People Propel program, which gives them the ability to purchase items they would otherwise not have the opportunity to buy,” said BECK STOKES, a member of the rural sales team at Spenard Builders Supply in ANCHORAGE . “I worked with a woman from Toksook Bay who needed a new freezer for her and her large family. With the freezer being a larger model and the cost of freight, she would not have been able to get the freezer without saving the additional 30%. She explained how the freezer would help her family be able to store more meats and foods they could not before. I have noticed that this program often helps those who need it and it is a great benefit to rural Alaska.”

PEOPLE PROPEL® 2013-2023 EQUIPMENT CATEGORY BREAKDOWN

CARLOTTA EVAN TUNTUTULIAK

A Map For The Future After a Three-Year Effort, GIS Team Digitally Maps 100% of Communities

After a three-year push, CVRF is unveiling a shared resource that provides our 20 communities with a visual infrastructure guide to support future planning and development for roadways, utilities, home building, and other construction. By digitally mapping the infrastructure of each community, CVRF is closing a critical data gap that can stall economic development and investment.

Our Geographic Information Systems (GIS) initiative draws from our close community relationships, our shared understanding of climate impacts, our cultural traditions and community norms, and our access to decision-makers. By merging and applying these skillsets in the GIS initiative, we are supporting community decision-making and planning in a way that no one else is equipped to do.

“In these remote areas of Alaska, it’s rare to have GIS personnel,” said RODERICK ATTI, a community benefits

coordinator for CVRF in TOKSOOK BAY. “I’m happy to help in any way with researching and data creation for our communities.”

Roderick presented the GIS initiative at the 2023 Alaska Geosummit in Anchorage.

The work of creating a multi-layer community map requires gathering data from a variety of sources. The GIS team collates infrastructure data and layers it over topographical maps. The new visual GIS maps give local government decision-makers access to reliable information they can use to inform future improvements, new home construction and other big decisions. Other applications include supporting the build-out of fiber and telecommunications services and providing community members with a physical address to receive mail and deliveries. Physical addresses also support residents’ ability to apply for benefits

programs, open bank accounts, and obtain mortgages.

JANELLE CARL , a KIPNUK-based community benefits coordinator for CVRF who works on the GIS initiative, said the work—and its real-life application—is exciting. For example, after Typhoon Merbok, the team used the maps to locate areas impacted by the storm. Now, the data can be used to develop new emergency and recovery plans for the next natural disasters.

In one village, the team focused on land erosion and is able to look back on 20 years of data to see how much land was lost. This helps communities plan for the future.

“We’re helping communities see where they can expand, where their community boundaries are, and where they can build houses or boardwalks in the future,” Janelle said. “This gives them a way to see where they can go next.”

RODERICK ATTI TOKSOOK BAY

JANELLE CARL KIPNUK

Journalists Bring Readers Aboard The Northern Hawk

Anchorage Daily News Provides Insight Into CVRF Operations, Programs & People

Alaskans who depend on subsistence traditions, along with their communities, government agencies, and commercial fishing are all under pressure. Declines in salmon runs, shutdowns of subsistence fishing, severe erosion, and violent coastal storms are capturing national media attention as people demand solutions. While scientists continue to cite climate change as the primary culprit, some special interests have fanned the flames against Bering Sea fishing, contrary to available evidence and logic.

As a result, the press often calls CVRF requesting opportunities to join its crews at sea and see the fishing operations first-hand. In the summer of 2023, CVRF granted permission to a well-respected journalist, working under a grant from the Pulitzer Center, to do just that. HAL BERNTON, a journalist with nearly 40 years of experience writing about fisheries, climate, and energy for the Anchorage Daily News and The Seattle Times, and LOREN HOLMES, an Anchorage Daily News staff photographer who was born and raised in Alaska, boarded the Northern Hawk in August and journeyed to the pollock fishing grounds. In the spirit of fostering understanding and

informed discourse, CVRF granted full, unimpeded access to the boat, crew, and staff. No questions were off-limits.

Meanwhile, fellow Anchorage Daily News reporter

ZACHARIAH HUGHES traveled to EEK and QUINHAGAK to report on traditional lifestyles and the many community programs funded by Bering Sea fishing.

The resulting two-part story appeared in October, spanning several full pages in the Anchorage Daily News and in The Seattle Times. Written by independent journalists with no financial relationship or obligations to CVRF, the stories provided an honest, upfront, and insightful accounting of CVRF’s people, fishing operations, and programs—on land and at sea.

PART I: FOSTERING UNDERSTANDING OF LIFE AND WORK ABOARD THE NORTHERN HAWK

After multiple days at sea living among the crew, Bernton’s reporting surfaced the fundamental issues of warming waters, competition for food between Alaska’s salmon and Asian hatchery fish, and a growing volume of Russian boats harvesting the Bering Sea’s resources.

Bernton wrote in great detail about the techniques and technology CAPT. JIM EGAAS uses to avoid bycatch—even when it means moving away from large pollock yields to avoid schooling salmon. It is notable that through the 2023 winter and summer seasons, the Northern Hawk harvested more than 105 million pounds of pollock with only 751 bycatch chum, far below the fishery average.

Bernton’s chronicles also spotlighted some of the crew who have dedicated their lives and careers to this line of work with CVRF: MARIA MCKENZIE and RUBEN ZUNIGA, who married in 2017 after meeting each other aboard the Northern Hawk, and BONNIE BELL, a longtime resident of CHEVAK who works in an onboard laboratory near the boat’s surimi plant.

PART II: SUBSISTENCE TRADITIONS IN THE VILLAGE

Noting the shift CVRF made away from local seafood processing, and instead towards programs that benefit all 20 communities more equally, Anchorage Daily News staff reporter Zachariah Hughes traveled to Quinhagak and Eek for an up-close look at how CVRF programs support subsistence needs and preserve cultural traditions.

Journalists Bring Readers Aboard The Northern Hawk (Continued)

Revenue from fishing operations such as the Northern Hawk pollock trawl vessel pays for the People Propel® initiative, a keystone program that has helped residents purchase $50 million of motorized equipment such as ATVs and outboard engines since its inception.

Quinhagak’s mayor, JERILYN KELLY, is quoted in the article saying if CVRF’s programs didn’t exist, “a lot of our families here wouldn’t be subsisting. They wouldn’t have a boat and motor, they wouldn’t have an ATV, and they wouldn’t have the means to fill their freezers.”

In fact, fishing revenue funds all of our program initiatives, including the mechanic/welder shops, heating fuel, and youth programs like Youth to Work, which prepares young Alaskans for future careers while also teaching them Native traditions, such as basket weaving and fish trap construction.

Hughes’ coverage of teenagers making traditional harpoons and of a family’s recipe for akutaq made with halibut helped raise the profile of CVRF communities and our traditional ways of life on a national stage and helped foster a better understanding of the importance of protecting these traditions.

DISTRIBUTING ALASKA’S RESOURCES FOR ALASKANS

Anchorage Daily News’ two-part story underscored the $60 million economic impact of programs and jobs delivered in 2021 alone by Alaska’s six CDQs, with special attention on CVRF’s contributions. The series featured HAROLD SPARCK who lived in and among CVRF communities and fought in Washington, D.C. for many years to enable western Alaskans to participate in the vast federal fisheries off our shores.

While the challenges have changed, the article showcased the pride in CVRF as the first CDQ group in the history of the Western Alaska CDQ program to harvest its CDQ pollock, Pacific cod, and crab allocations aboard vessels that it wholly owns.

As the largest Bering Sea federal fisheries operator headquartered in Alaska, CVRF engages with cultural heritage, applies traditional Native values, and pursues sustainable fishing that will last for generations. Anchorage Daily News’ reporting provided a comprehensive look at CVRF, the CDQ program, and the measures taken to ensure the long-term health and sustainability of the Bering Sea to ensure people can provide for themselves, their families, and their communities, for today, tomorrow, and generations to come.

Quinhagak’s mayor, Jerilyn Kelly, is quoted in the article saying if CVRF’s programs didn’t exist, “a lot of our families here wouldn’t be subsisting.

They wouldn’t have a boat and motor, they wouldn’t have an ATV, and they wouldn’t have the means to fill their freezers.”

The Next Generation of Leaders

CVRF’s Youth to Work

Program

Summers in Alaska offer teens an opportunity to prepare for their futures as adults, through CVRF’s Youth to Work program.

The program, open to residents who are between 14 and 19 years old, is designed to help teens gain job experience, build their resumes, and connect with traditional Alaska Native culture and practices.

BRENDA ERIK , a community programs supervisor, has been involved with Youth to Work since 2019.

“The program helps develop our future workforce and leadership in our communities,” Brenda said. “It’s a great opportunity for youth to learn and achieve in a variety of ways.”

In 2023, 569 youth participated as team members, 16 participated as team leads, and 36 participated in the maritime program. Together, they earned a combined $540,970.84 in wages and bonuses.

Youth to Work began in 2007 as a pilot program. Since then, it expanded in 2019 to include a maritime program that is designed to teach the basic skills someone needs to explore careers in the maritime industry. Participants gain hands-on maritime experience and training that fulfills the requirements for a certificate in nautical skills from the Alaska Vocational Technical Center in SEWARD. The maritime program expanded in 2021 with the addition of a virtual reality training program. The Virtual RealityEnabled Workforce Pathway gives our youth the opportunity to explore our largest vessel, the Northern Hawk, even when it is out at sea. This unique experience is a new and exciting part of CVRF’s pathway from Youth to Work into maritime careers.

CVRF Internships Provide A Foundation For Growth Experience Helps

Students Gain Experience, Build Confidence

If there’s an opportunity for anything that’s better than what you’re getting—take it

JOSEPH CHOLOK

SCAMMON BAY

Each year, our internship program hires students to support our business operations, participate in professional development activities, and ultimately gain experience to thrive in any work environment.

CVRF interns receive focused career coaching, meaningful work assignments, and hands-on learning opportunities about CVRF’s operations in other member villages.

First-year intern JOSEPH CHOLOK of SCAMMON BAY is majoring in art at the University of Alaska Fairbanks. He said his biggest takeaways from the internship were the importance of time management, building communication skills, and seeking out leadership opportunities.

His advice for village students is simple: “If there’s an opportunity for anything that’s better than what you’re getting, take it,” Joseph said.

The internship program provides students with exposure to career opportunities as well as a candidate pipeline for future CVRF positions in the maritime industry, a corporate office, or a member community.

First-year intern CALEY PAUL of KIPNUK participated in Youth to Work before becoming a CVRF intern. She’s majoring in medical assisting at the University of Alaska Fairbanks and plans to be a health aide when she graduates in May.

Caley said the experience took her out of her comfort zone and helped her develop better communication skills.

Her favorite part of the internship program was guiding students in traditional crafts and jewelry making.

“I’m a shy person, and this helped me learn how to meet with people and communicate,” Caley said. “The students were very sociable and funny—I aspire to be like that.”

In 2023, seven students participated in CVRF’s internship program and earned $40,821.50 in wages.

CALEY PAUL KIPNUK

JOSEPH CHOLOK

SCAMMON BAY

Helping New Generations Succeed

CVRF Awarded $215,000 Through The Louis Bunyan Memorial Scholarship

CVRF is committed to helping the next generation of our residents get the highest levels of training and education and thereby develop into skilled workers and leaders in our communities. In 2023, CVRF awarded $215,000 to 57 students through the Louis Bunyan Memorial Scholarship. This program, established in 1993, awards students up to $4,000 each to attend vocational school, certificate programs, and two- and four-year colleges.

BANIIKA SLATS of CHEVAK is studying business administration at the University of Alaska Fairbanks and is on track to graduate in May. Prior to applying for the scholarship program, she participated in Youth to Work in high school. She said CVRF has helped her connect with her community.

“I’m a little on the shy side, and the best advice I’d give teenagers is not to be afraid to try new things,” she said. “Do as much as you can and try as many opportunities as you can to figure out what you’re passionate about.”

KIERAN BENTLEY of NAPASKIAK is enrolled in the computer science program at Ithaca College, a private college in New York, and has been awarded the CVRF scholarship for multiple semesters.

“My parents were first-generation college students, spoke to teachers, and then eventually, I spoke with community organizations like CVRF to get a better idea of what I wanted to do,” Kieran said. “Once I got the CVRF scholarship, it opened a huge amount of possibilities. There were schools I hadn’t considered before because I didn’t want to go that far into debt.”

His advice to high school students is to start early: “Talk to your teachers, CVRF representatives in the village, and school counselors,” he said. “Having an idea early on of what you want to do helps prevent stress down the line, and the less stress you have makes the whole experience more fun.”

Do as much as you can and try as many opportunities as you can to figure out what you’re passionate about.

BANIIKA SLATS

BANIIKA SLATS CHEVAK

KIERAN BENTLEY NAPASKIAK

CHEVAK

Feels Like A New Beginning

CVRF’s Rural Housing Program

CVRF’s communities, along with the rest of western Alaska, face an extraordinary housing shortage. Construction of three new homes in 2023 signals small but important progress towards better living conditions in our region.

In addition to building three homes, CVRF sold two tiny home material packages to Nunakauyak Traditional Council and one to the Eek Tribe. CVRF is proud that the majority of the employees, construction crew, and departments involved are residents of the region CVRF serves.

The teamwork between Nunakauyak Traditional Council, Nunakauiak Yupik Corporation, Bureau of Indian Affairs, U.S. Department of Agriculture, and Alaska Native Tribal Health Consortium has shown that housing is achievable through partnerships and that residents can qualify for mortgages to become homeowners.

“It feels like a new beginning for our family,” said GLORIA ALIRKAR of TOKSOOK BAY who will move into her new home in 2024 after closing. “I really like how we have so much space. We love our new home. Thank you CVRF!”

Improved housing is a team effort. CVRF is working with other local, state, and federal entities to bring better housing to our region. We continue to refine how CVRF’s resources might best be used to bring additional energy-efficient housing to as many residents as soon as possible.

FEEDING OUR COMMUNITIES

For the past three years, the Alaska Department of Fish and Game has closed subsistence fishing in Chevak, Hooper Bay, and Scammon Bay, leaving many residents unable to fill their freezers and fish racks for the winter. CVRF partnered with Alaska Airlines Cargo, Northern Air Cargo, Ryan Air and SeaShare to help deliver 11,000 pounds of king and chum salmon to residents in Mekoryuk, Scammon Bay, Hooper Bay, and Chevak in 2023. Fish was sent to communities based on population, outreach to tribal councils, and adequate subsistence harvest in other areas.

Thanks to Chevak Native Village, Native Village of Hooper Bay, Native Village of Mekoryuk, and Scammon Bay Traditional Council and CVRF staff members George King, Clifford Paniyak, Amanda Shavings, Jacob Rivers, Jason Akerelrea, Isaac Tomaganuk, Herschel Sundown, George Smith, Paul Joe Jr., Darrell Walker, and Mason Nanuk for helping distribute salmon to residents.

THE ALIRKARS TOKSOOK BAY

Maintaining The Tools Of Subsistence

Mechanics/Welders Keep CVRF Communities Humming

CVRF’s skilled mechanics and welders (M/Ws) provide essential shop services and community-focused support that enables subsistence lifestyles.

These crews repair and build custom parts for equipment that is crucial to daily life in rural Alaska.

Over the past year, the crew made emergency repairs on numerous heating systems, welded custom walk-through windshields for boats, ran diagnostics on motors, replaced bearings and conducted basic maintenance on snow machines, assisted with burials, delivered salmon to residents, and helped find a man who got lost out in a storm with 68 mph winds.

“He couldn’t see two feet in front of him and was having a panic attack,” said GEORGE SMITH, manager of CVRF’s M/W program. “They were able to find him within an hour.”

Since the M/W program began, people along the Yukon Delta have discovered the cost savings of utilizing CVRF’s shops, including people traveling by snow machine from as far away as Pilot Station,

to get equipment repaired. Freight to and from Anchorage repair shops can cost upward of $3,000. Having qualified, trained M/Ws in the region saves residents from having to ship equipment out for repairs.

In 2023, many of CVRF’s M/Ws traveled near and far to hone their skills. Three M/ Ws went to Yamaha Outboards in Valdez to receive training August 4-10, 2023, while two additional M/Ws traveled to Stockton, California, for Honda Marine training. These opportunities are vital, enabling our M/ Ws to support our communities and better serve residents throughout the region.

“I just rebuilt my first outboard and wanted to thank CVRF for the Honda training I got to experience,” said AARON DULL of NAPAKIAK . “I wouldn’t have tried to rebuild it knowing I really didn’t know how, but that training gave me the confidence and enough info of how things work and why torque specs are important.”

While supply chain issues have made certain parts more difficult to keep in stock, M/Ws have helped community members extend, and sometimes double, the usable life of equipment.

You can’t put a dollar value to the work these guys do. They don’t pat themselves on the back, they just quietly do their jobs and they’re very good at what they do.

GEORGE SMITH, MANAGER CVRF M/W PROGRAM

CVRF Acquires Honda Dealership Investment Assures

On-going Access To Quality, Regional Service

CVRF announced a major acquisition in 2023: All Seasons Honda and Peninsula Ski-Doo in Homer, a long-time partner of our People Propel program.

This acquisition allows CVRF to expand the service provided in our mechanic/welder shops throughout the region, which in turn keeps subsistence lifestyles in motion. The Honda dealership and its expert technicians provide technical training, better access to parts, and a base of support for in-region Honda warranty repair work. This meaningfully extends the service life of Honda ATVs, SkiDoo snowmachines, and outboard motors.

“All Seasons Honda has always recognized the unique needs of its rural customers and this investment by CVRF helps us keep the focus on assuring that all customers are treated equally, with the same quality work and level of customer service,” said JOHN RUMMERY, manager of All Seasons Honda.

Back in 2017, CVRF partnered with All Seasons Honda to create a snowmachine maintenance program that provided dealership-quality repair and maintenance services at community service centers located across the region. This gave residents access to routine maintenance without having to air freight equipment to a dealership for service.

Then, in 2021, CVRF partnered with American Honda Motor Co. to open three authorized Honda service centers with Honda-trained CVRF staff. These centers, located in EEK, SCAMMON BAY, and KIPNUK, gave residents access to faster and more affordable repairs for Honda equipment.

The All Seasons Honda dealership has long treated the customer service needs of CVRF communities as equal to those of anywhere else. By bringing the dealership into the CVRF portfolio, we are furthering investments in the maritime regions of Southcentral Alaska, and assuring reliable access to service that will benefit even more communities.

“Southcentral Alaska is a key hub for maritime trades, and All Seasons Honda is proud to be a long-time and growing contributor to this economy,” said Rummery. “We service equipment for customers, both in this region and Western Alaska, and we’re continually investing in training programs. These programs allow mechanics to travel here for additional training and bring skills back to the CVRF Community Service Centers in their own communities. The ties between Western Alaska and Southcentral are strengthening, thanks to CVRF’s investments for the future.”

JACOB RIVERS, who began working as a mechanic for CVRF in 2006, works with a team in SCAMMON BAY that services a wide range of equipment.

“CVRF has come a long way, and with All Seasons Honda, we can continue to strive to help our community more effectively and efficiently,” he said.

CVRF has

come a long way, and with All Seasons Honda, we can continue

to strive to help our community more effectively and efficiently.

JACOB

RIVERS, MECHANIC SCAMMON BAY

MATTHEW CHOLOK CHEVAK

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, bycatch, and subsistence 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 matters of ethics, discipline and other related topics.

For CVRF’s subsidiaries (CAPS, CVP, CVC, CVL, EXS, CVE, CVS, 711 H, FVH, and CPH), 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 2023.

• The full CVRF Board met four times during 2023: March 14, July 11, October 11, and December 13.

• The CVRF Executive Committee met seven times: January 16, May 3, June 8, June 21, November 1, November 16, and December 12.

• The subsidiary Boards met in December of 2023 for their annual meetings.

• The Policy and Compensation Committee did not meet during 2023.

• The Disciplinary Committee did not meet during 2023.

• The Finance Committee did not meet during 2023.

• The Election Committee met three times: March 6, November 16, and December 1.

• The Fisheries Committee did not meet during 2023.

• The Programs Committee met once on April 20.

• There were numerous informal meetings and teleconferences with the President/Vice President, Board members and Company leadership.

AUDITOR AND AUDITOR RELATIONSHIP

CVRF has not had any disagreements with its auditors (KPMG) in any year, including 2023. CVRF received nonaudit services from its auditors in 2023 and paid KPMG $235,765 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 2023, the top 10 highest paid positions earned the following base salaries (note there were no bonuses paid to these employees in 2023):

• Eric Deakin, CEO, $396,000

• James Egaas, Pollock Vessel Captain, $336,137

• Michael Coleman, Bering Sea Operations Manager, $320,543

• Michelle Drew, CFO, $316,772

• John Reines, Pollock Vessel Chief Engineer, $292,131

• Terje Gjerde, Pollock Vessel Factory Manager, $286,961

• Nicholas Souza, Director of Sales & Marketing, $250,066

• Francisco Diaz, Pollock Vessel First Mate, $245,912

• Thomas Hindermann, Pollock Vessel Chief Engineer, $238,895

• Sauveur “Chuck” Velasco, Longline Vessel Captain, $237,441

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 was approved by the independent authorized body (IAB) comprised of an independent member from each of CVRF’s 20 member communities. A board compensation review by a new IAB is scheduled to be convened in 2024. The CVRF Board compensation policy is in full compliance with IRS Rebuttable Presumption of Reasonableness guidelines.

During 2023, CVRF paid its Board members $598,305 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 ($133,440)

• Daughter: CSR ($42,206)

• Spouse: Winter Watchman ($12,000)

• Sister-in-Law: CSR ($50,535)

• Daughter: Community Benefits Accountant ($66,866)

• Daughter-in-Law: CSR ($17,554)

LEGAL PROCEEDINGS INVOLVING DIRECTORS

CVRF was not engaged in any litigation with any of its directors during 2023.

PROFESSIONAL FEES

In 2023, CVRF paid the following fees for professional services: (1) $430,607 in legal fees; (2) $1,407,309 in consulting fees; (3) $274,215 in accounting fees; and (4) $297,930 in lobbying fees.

Financial Disclosures (Continued)

Consolidated Statements of Financial Position (Balance Sheet)

Coastal Villages Region Fund & Subsidiaries

Consolidated Statements of Activities (Income

Statement)

Villages Region Fund & Subsidiaries

and Gains (losses):

and Losses:

Board of Directors

The Board of Directors plays an important role at CVRF. It serves 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 would like to thank all 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 2023. Board members provided valuable guidance and oversight that helped move CVRF closer to achieving some of its long-term goals.

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 represent, meaning that the Board member must have permanent residency and plan to remain a resident. Elections are run under a standardized democratic process designed to give every adult, 18 years or older, the opportunity to vote in the election for the CVRF board member from their community. Thank you to the Tribes throughout our communities for running our elections.

In 2023, five special elections were held in Chefornak, Goodnews Bay, Napaskiak, Newtok, and Toksook Bay. The following board members were elected to their positions and seated in December: Richard Jung (Vice Chairman), Evan Evan (Seat B), Eric Olson, Sr. (Member), Jerry Ivon (Member), Nicholai M. Steven (Member), Sam A. Chanar (Member), Carlie Beebe (Member).

2023

Board of Directors

LARSON HUNTER CHAIRMAN SCAMMON BAY

JOHN SAMUEL SECRETARY PLATINUM

CARLIE BEEBE EXEC COMMITTEE EEK

ALBERT WILLIAMS EXEC COMMITTEE MEKORYUK

ALFRED ULROAN CHEVAK

ERIC OLSON, SR. HOOPER BAY

ANDREW KIUNYUA KWIGILLINGOK

RICHARD JUNG VICE CHAIRMAN NAPAKIAK

GABRIEL OLICK TREASURER TUNTUTULIAK

GEORGE CHUCKWUK EXEC COMMITTEE KIPNUK

ROBERT PANRUK CHEFORNAK

EVAN S. EVAN GOODNEWS BAY

JERRY IVON KONGIGANAK

JACKIE B. LARSON NAPASKIAK

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.

LISA CHARLES NEWTOK

NICHOLAI STEVEN OSCARVILLE

SAM A. CHANAR TOKSOOK BAY

ISADORE ANTHONY NIGHTMUTE

JOHN W. MATTHEW QUINHAGAK

ALMA KANRILK TUNUNAK

2024 Board of Directors

LARSON HUNTER CHAIRMAN SCAMMON BAY

CHAIR TERM: 2022-2027 BOARD TERM: 2022-2027

GEORGE CHUCKWUK EXECUTIVE COMMITTEE KIPNUK

EXEC COMM TERM: 2022-2027 BOARD TERM: 2024-2029

ALFRED ULROAN CHEVAK

2022 - 2027

ANDREW KIUNYA KWIGILLINGOK

2020 - 2025

NICHOLAI STEVEN OSCARVILLE

2024 - 2029

RICHARD JUNG VICE CHAIRMAN NAPAKIAK

VICE CHAIR TERM: 2024-2029 BOARD TERM: 2022-2027

EVAN S. EVAN

EXECUTIVE COMMITTEE GOODNEWS BAY

EXEC COMM TERM: 2024-2029 BOARD TERM: 2022-2027

CARLIE BEEBE EEK

2024 - 2029

JACKIE B. LARSON NAPASKIAK

2023 - 2025

JOHN W. MATTHEW QUINHAGAK

2020 - 2025

JOHN SAMUEL SECRETARY PLATINUM

SECRETARY TERM: 2020-2025 BOARD TERM: 2019-2025

ALBERT WILLIAMS EXECUTIVE COMMITTEE MEKORYUK

EXEC COMM TERM: 2020-2025 BOARD TERM: 2022-2027

ERIC OLSON, SR. HOOPER BAY

2024 - 2029

LISA CHARLES NEWTOK

2020 - 2025

SAM A. CHANAR TOKSOOK BAY

2024 - 2029

GABRIEL OLICK TREASURER TUNTUTULIAK

TREASURER TERM: 2020-2025 BOARD TERM: 2019-2025

ROBERT PANRUK CHEFORNAK

2022 - 2027

JERRY IVON KONGIGANAK

2024 - 2029

ISADORE ANTHONY NIGHTMUTE

2022 - 2027

ALMA KANRILAK TUNUNAK

2019 - 2025

A Message from the Chairman

The CDQ program as we know it is under threat. As one of the very few successful programs to deliver economic opportunity for rural Alaska communities, we cannot stand by while deliberately misinformed attacks on our sustainable fishing practices risk shutting down our operations, jobs and programs.

We know that residing in western Alaska has its challenges. The cost of living is extreme, with goods often double or triple those on the shelves in Anchorage. Although rich in subsistence, only a few are fortunate to have jobs with the schools, the Native tribes and corporations, or municipalities. For those unable to find work, they rely on public assistance such as Temporary Assistance for Needy Families (TANF) and the Energy Assistance Program (EAP). For many families, this reality is not a choice, but a lack of opportunity.

The CDQ program was born of this reality. Sustainably harvesting fish and crab shifted control of some of the Bering Sea fishery to us Alaskans, which in turn has provided economic opportunities to alleviate poverty in our respective regions.

CVRF has tried various ventures over the years. Some worked, others didn’t, and some had to evolve into what we have today. The People Propel® program is one that took modifying to get it right, and now, a decade later, has injected over $50 million to help residents purchase ATV’s, snow machines, outboard motors, boats and various household appliances. It is an example of the power of CDQ to provide relief from the high cost of living.

Revenues from Bering Sea fishing also have enabled us to build and run Community Service Centers (CSC). They provide year-round employment and house mechanic shops where we provide vehicle services and workspace. $3.9 million in CSC wages were paid in 2023 for essential mechanic and welder jobs supporting our communities, and serving our neighbors who are not part of CVRF.

With all that we do for our region now, and the more that we hope to do, we must meet the challenges that are before us— from climate change, erosion and reduced returns of salmon in some parts of western Alaska, to combating misinformation

about CDQ and salmon bycatch on social media.

We are proud to operate one of the cleanest fleets with the lowest bycatch rates. We cannot control the climate change that scientists say is the leading cause of low salmon returns. We know there are other contributors like intercept fishing. But we cannot remain quiet while angry voices seek to shut down our fishing, and our economic lifelines, ignoring the science and achieving nothing to restore the salmon runs. What happens to all the jobs we provide in the region? Are we ok with going back into the welfare system? What happens to all the services and programs like People Propel, or our mechanic/welders jobs and services, or our Youth to Work training?

We at CVRF insist that our pollock trawl captains avoid salmon at all costs. And they do – we operate one of the lowest salmon bycatch vessels in the whole industry.

But the voices to shut us down don’t stop. In fact they are getting louder, and can have a devastating impact on our ability to deliver economic benefits and hope if we do not speak up to defend CDQ and our fishing practices.

The Magnuson-Stevens Act and the CDQ program ensure science-based fishing and management to sustain the resource for generations. I am proud to serve our communities, alongside the CVRF board of directors who also call these communities home. Together we guide CVRF operations and investments that have made our CDQ one of the most impactful federal mandates in Alaska, alongside others such as federal contracting rights for Alaska Native Corporations, and tribal recognition to open access to federal funding.

After 30 years, the CDQ program is an economic success story that will rapidly become an epic catastrophe for Western Alaska if politics wins over science. There is no plan B to replace the jobs and programs that would go away if fishing is shut down. As always, I’m open to discussion for those that want to share their thoughts or hear any of mine. Please do not hesitate to reach out to me on anything related to CDQ.

We cannot remain quiet while angry voices seek to shut down our fishing, and our economic lifelines, ignoring the science and achieving nothing to restore the salmon runs. What happens to all the jobs we provide in the region? Are we ok with going back into the welfare system? What happens to all the services and programs like People Propel, or our mechanic/welders jobs and services, or our Youth to Work training?

LARSON HUNTER, CHAIRMAN

COASTAL VILLAGES REGION FUND

LARSON HUNTER, CHAIRMAN COASTAL VILLAGES REGION FUND