2023 CVRF Annual Report

Investing For All Generations COASTAL VILLAGES REGION FUND 2023 ANNUAL REPORT

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 1

2023 ANNUAL REPORT

Table of Contents

BERING SEA EARNINGS FUEL ECONOMIC DEVELOPMENT

Our Mission............................................................................. 3 Report From The CEO: Our 25th Anniversary..................... 4

By The Numbers: People, Employment & Fishing............... 5 Fueling the Future: Sustaining Communities by Driving Growth....................6 Responsible Stewardship: Caring for Alaska’s Resources..............................................7 Community Essentials: People Propel® Puts $50 Million into Western Alaska................................................................9

DIRECT EMPLOYMENT

PATHWAYS TO SUCCESS

COMMUNITY ESSENTIALS

Creating Sustainable Jobs

Supporting Youth for Career Success

Providing Essentials

137 STAFF & BOARD

639 YOUTH TO WORK

$1.0 MILLION in

in 20 COMMUNITIES

and 7 INTERNS

People Propel® SUPPORT

and ANCHORAGE $4.5 MILLION in

$568,935 in EARNED WAGES and

600 HOUSEHOLDS received

BONUSES of $39,997

11,000 lbs. of SALMON

EARNED WAGES $628,000 in

57 STUDENTS

2,041 PREPARED

EMPLOYEE BENEFITS

RECEIVED $215,100 in

TAX RETURNS and

SCHOLARSHIPS

$3 MILLION in REFUNDS

Community Essentials: GIS Project: A Map for the Future........................................11 In The News: Journalists Bring Readers Aboard The Northern Hawk................................................................12

$13.6 MILLION INVESTED IN CVRF COMMUNITIES IN 2023

Community Essentials: Youth To Work Program The Next Generation of Leaders.........................................14 Internship Program: A Foundation for Growth..............15 Scholarship Program: Helping New Generations Succeed....................................16 Community Essentials: Feels Like A New Beginning..................................................17 Community Essentials: Maintaining the Tools of Subsistence................................18 Community Essentials: CVRF Acquires Honda Dealership.......................................19 Financial Disclosures ............................................................ 20 Board of Directors................................................................. 25 Message from the Chairman................................................. 27

Pollock Harvested

107.26 MILLION POUNDS

Cod 7.99 Harvested MILLION POUNDS

Crab Harvested

669,902 POUNDS

COASTAL VILLAGES REGION FUND

Our Mission OUR VISION

OUR CORE COMPETENCIES

OUR CORE VALUES

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.

•

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

•

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.

Scammon Bay Hooper Bay

Chevak

Newtok

OUR MEMBER COMMUNITIES Tununak Toksook Bay Mekoryuk

Nightmute Chefornak Kipnuk

ALASKA

Napakiak

Oscarville Napaskiak

Tuntutuliak Eek Kongiganak

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

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 3

REPORT FROM THE CEO

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

ERIC DEAKIN, CEO

our primary mission is to utilize the revenues from our fishing quota to serve the needs of our 20 Western Alaska

COASTAL VILLAGES REGION FUND

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

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.

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

ERIC DEAKIN, CEO

justice program, CDQ, are becoming among the biggest losers in this international struggle.

COASTAL VILLAGES REGION FUND

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.

4 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

BY THE NUMBERS

People, Employment & Fishing 2006-2020 POPULATION

2023 JOBS, WAGES + BENEFITS

2023 POPULATION 10000

8,797

9,016

9,328

8000

9,091 ADULTS 18+

YOUTH TO WORK (YTW) + INTERN EMPLOYEES

IN-REGION EMPLOYEES + BOARD MEMBERS

TOTAL EARNED WAGES

EMPLOYEE BENEFITS

646

137

$4.8M

$628K

5,591

6000

YTW-AGED YOUTH 4000

1,164

2000

HOUSEHOLDS

2,311

0 YEAR

2006

2010

2020

In 2023, CVRF employed 783 in-region residents who earned $4.8 million combined.

We are grateful to be able to continue investing in our staff and communities by offering training and professional development opportunities.

SOURCE: State of Alaska Permanent Fund Division (2006, 2010, 2020, 2022). Revenue Permanent Fund Information System dataset for 2006, 2010, 2020, 2022 Dividend years (PFD).

2022 vs 2023 BERING SEA CATCH RATES

2023

CVRF is devoted to serving our communities and meeting their unique needs — today and in the future.

2022

POLLOCK HARVESTED

COD HARVESTED

CRAB HARVESTED

107.26

7.99

669,902

MILLION POUNDS

MILLION POUNDS

POLLOCK HARVESTED

COD HARVESTED

CRAB HARVESTED

90.59

12.25

777,417

MILLION POUNDS

MILLION POUNDS

POUNDS

POUNDS

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 5

FUELING THE FUTURE

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

6 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

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.

RESPONSIBLE STEWARDSHIP

Caring for Alaska’s Resources

IN ALL OF 2023, THE NORTHERN HAWK HARVESTED

107.26 MILLION POUNDS OF POLLOCK AND

486 CHINOOK SALMON.

THAT’S FOR EVERY

1

INDIVIDUAL CHINOOK

220,690

POUNDS OF POLLOCK

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 7

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.

RESPONSIBLE STEWARDSHIP

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.

90,000

60,000

30,000

0

Bering Sea Chum Salmon Bycatch GENETIC COMPOSITION ESTIMATE (2023 B Season Pollock Fishery) TOTAL CHUM CAUGHT: 111,698

Russia & Asia 18.6% Pacific Northwest

(76,848)

& Eastern Gulf of Alaska (20,776)

2.3% Upper/ Middle Yukon (2,569)

2.0% Southwestern

68.8%

Alaska (2,234)

8.3% Western Alaska (9,271)

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.

23

22

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

20

21

20

20

20

19

20

18

20

17

20

20

15

16

20

14

20

13

20

12

20

11

20

10

20

09

20

08

20

07

20

06

20

05

20

04

20

8 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

120,000

03

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.

150,000

20

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.

NUMBER OF CHINOOK SALMON (2003-2023)

20

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.

Industry-wide Bering Sea Chinook Salmon Bycatch

COMMUNITY ESSENTIALS

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

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 9

COMMUNITY ESSENTIALS

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.”

CARLOTTA EVAN TUNTUTULIAK

PEOPLE PROPEL® 2013-2023 EQUIPMENT CATEGORY BREAKDOWN ATV

1,490

OUTBOARD

1,070

SNOWMACHINE

819

APPLIANCES

662

MISC. EQUIPMENT

642

BOAT HEATING SYSTEMS FISHING GEAR

10 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

403 225 171

COMMUNITY ESSENTIALS

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

RODERICK ATTI TOKSOOK BAY

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

JANELLE CARL KIPNUK

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.”

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 11

IN THE NEWS

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

12 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

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.

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.

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.

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

PART II: SUBSISTENCE TRADITIONS IN THE VILLAGE

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.

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.

IN THE NEWS

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.

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.”

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.

READ THE SERIES ONLINE You can see the Anchorage Daily News stories online, by scanning this QR code with your phone: Part 1

Part 2

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 13

COMMUNITY ESSENTIALS

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.

14 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

INTERNSHIPS

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

CALEY PAUL KIPNUK

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.

JOSEPH CHOLOK SCAMMON BAY

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.

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

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 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.

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.

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 15

SCHOLARSHIPS

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.”

BANIIKA SLATS CHEVAK

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.

KIERAN BENTLEY NAPASKIAK

16 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

BANIIKA SLATS CHEVAK

COMMUNITY ESSENTIALS

Feels Like A New Beginning CVRF’s Rural Housing Program

THE ALIRKARS TOKSOOK BAY

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.

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.

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 17

COMMUNITY ESSENTIALS

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.

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.

“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.”

“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.”

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,

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.

18 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

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

COMMUNITY ESSENTIALS

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

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 19

2023 ANNUAL REPORT

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.

20 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

•

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.

2023 ANNUAL REPORT

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

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.

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.

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)

BOARD COMPENSATION POLICY AND FEES

•

CVRF Board members receive a daily stipend during meetings and an additional monthly stipend for the

Daughter: Community Benefits Accountant ($66,866)

•

Daughter-in-Law: CSR ($17,554)

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 21

2023 ANNUAL REPORT

Financial Disclosures (Continued) 2023 GENERAL AND ADMINISTRATIVE EXPENSES

CUMULATIVE REVENUES JANUARY 1997 - DECEMBER 2023

Advertising

$4,097

Bank and finance

5,557

Communications

38,520

Computer and software

399,417 (485,262)

Drug screening & preemployment

7,860

Dues, permits, taxes & licenses

6,636

Employee education assistance

1,962

Freight

11,803

Insurance

574,171

Interest

394

Lease & rent

29,447

Meals and entertainment

69,700

Other fees and charges

(65)

308,789

Per diem

103,224

Printing

10,590

Coastal Villages Region Fund has earned $1.85 billion in cumulative revenue over the last 26 years.

$1,080,000

$900,000

$720,000

$540,000

$360,000

$180,000

2,171,714

Training

17,414

Transportation and parking

20,034

Travel and lodging

229,598 $8,456,935

22 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

2023

2021

2022

2019

2020

2018

2017

2015

2016

2013

2014

2012

2011

2010

2009

2007

2008

2005

2006

2003

2004

2001

2002

1999

0 2000

29,312

1997

25

Supplies

1998

Repairs and maintenance

GRAND TOTAL

$1,260,000

4,867,784

Payroll taxes and benefits

Professional services

$1,440,000

34,212

THOUSANDS

Depreciation

Payroll

$1,620,000

THOUSANDS

Cedit loss recovery

$1,800,000

FINANCIAL DISCLOSURES

Consolidated Statements of Financial Position (Balance Sheet) DRAFT 8:58 AM p21 & 23.

Audited FS schedules.xlsx DRAFT 8/30/22 6/6/24 11:36 AM DRAFT Audited DRAFT Financial 6/6/246/6/24 11:36 Statements.xlsx 11:36 AM Audited AM Audited Financial Financial Statements.xlsx Statements.xlsx

POLLOCK DRIVES CVRF FISH SALES 2023 SALES BY SPECIES ($)

C O A STA L V I L L A GES R EGI O N F U ND Coastal Villages Region Fund & Subsidiaries A ND SU B SI D I A R I ES

COAS TAL V ILLAG ES R EG ION CFO UN ASDTCAOLAVSITLA LA LG VEILSLA RG EG ESIORNEG FU IO NND FUN D AN D S UB S ID IAR IES AN D SAUNBDS ISDUIA BRSIIEDSIAR IES

DECEMBER 31, 2023 AND 2022

Consolidated Consolidated Consolidated Position Statements Statements of Financial of Financial Position Position ConsolidatedStatements Statements of of Financial Financial Position December 31, 2023 and 2022December December 31, 2023 31, and 20232022 and 2022 December 31, 2021 and 2020

As s e t s As s e t sAs s e t s 2023 A ssetsAssets 20 21 Current assets: Current Current assets:assets: Current Cash assets: and cash equivalents Cash and Cash cash andequivalents cash equivalents $ 25,624,960 Trade accounts receivable, less Trade allownace Trade accounts accounts forreceivable, current receivable, expected less allownace less credit allownace for current for expected expected credit credit Cash and cash equivalents $ current 78,653,728 lossesaccounts in 2023 of $166,199less and losses allowance losses in 2023 in forof 2023 doubtful $166,199 of $166,199 accounts and allowance and allowance for doubtful for doubtful accounts accounts Trade receivable, allowance for doubtful accounts in 2022 in of 2022 $17,340. ofrespectively $17,340.

8,666,127 in 2022 of $17,340. of $76,034 and $73,076 in 2021 and 2020, 6,024,393 Notes receivable, current portion, Notesnet Notes receivable, receivable, current current portion, portion, net net — Notes receivable, current portion, net 25,749 Inventories Inventories Inventories 6,899,848 Inventories 1,744,167 Prepaid expenses Prepaid Prepaid expenses expenses 3,732,026 Prepaid expenses 3,014,849 Total–current assets Total current Total current assets assets 44,922,961 Notes receivable CQS bridge loan —

Other assets OtherOther assets assets 304,967 Total current assets 89,462,886 Restricted certificates of deposit Restricted Restricted certificates certificates of deposit of deposit 510,000 Deposits Deposits Deposits 14,485 Other assets 1,388,752 Notes receivable, excluding current Notes Notes receivable, portion, receivable, net excluding excluding current current portion, portion, net net Assets held for sale —— Notes receivable – CQSs Notes Notes receivable receivable – CQSs – CQSs 7,877,975 Restricted certificates of deposit 235,000 Property, plant, vessels, and equipment, Property, Property, plant, net plant, vessels, vessels, and equipment, and equipment, net net 80,671,947 Deposits 19,414 Operating lease right-of-use Operating assetsOperating lease right-of-use lease right-of-use assets assets 702,357 Notes receivable, excluding current portion 27,584 Investments in fishing rights and Investments permits Investments in fishing in fishing rights rights and permits and permits 167,899,033 Notes receivable 7,444,325 Minority interest – inCQSs mothership Minority sector Minority interest securities interest in mothership in mothership sectorsector securities securities 2,057,192 Property, plant, vessels, and equipment, net method 67,368,828 Equity method investments EquityEquity method investments investments 35,740,237 Investments in fishing rights OtherOther 124,004,966 Other investment investment investment 662,993 Investments in fishing permits 301,196 Total assets Total assets Total assets $ 341,364,147 Equity method investment 15,515,407 Li abi l i t i e s andand N e t ANet s s e t sAssets Li abi l i tLiieasbial int d ieN se an t dAsNse t sAs s e t s 605,598 Liabilities Other investment Current liabilities: Current liabilities: liabilities: Total assets Current $ Accounts payable and accruedAccounts expenses Accounts payable payable and accrued and accrued expenses expenses Accrued payroll liabilities L ia biAccrued lities aAccrued n dpayroll Net A payroll ssliabilities ets liabilities Current obligations under operating Current Current leases obligations obligations underunder operating operating leasesleases Current liabilities: Current obligations under finance Current leases Current obligations obligations underunder financefinance leasesleases Accountsportion payableofand accrued expenses $ Current long term Current debt Current portion portion of longofterm long debt term debt Notes payable short term NotesNotes payable payable - short- term short term Accrued payroll-liabilities Deferred revenue Deferred Deferred revenue revenue Capital lease obligation, current portion Security Security Security deposits deposits Deferreddeposits revenue

2023 2022 20 20

2023 2023

2022 2022 2022

46,798,297 $ $25,624,960 25,624,960 47,572,359

46,798,297 46,798,297

4,953,184 8,666,127 8,666,127 6,318,646 34,790 — — 62,080 4,263,628 6,899,848 6,899,848 4,536,155 2,875,276 3,732,026 3,732,026 3,787,801 58,925,175 44,922,961 44,922,961 7,227,500

4,953,184 4,953,184 34,79034,790 4,263,628 4,263,628 2,875,276 2,875,276

1,375,174 304,967 304,967 69,504,541 510,000 510,000 510,000 47,730 486,57414,48514,485 49,150 — — 933,700 7,661,150 7,877,975 7,877,975 235,000 84,134,023 80,671,947 80,671,947 22,196 901,769 702,357 702,357 253,534 124,211,878 167,899,033 167,899,033 7,227,500 — 2,057,192 2,057,192 74,319,614 34,335,393 35,740,237 35,740,237 121,405,130 663,264662,993 662,993 312,814,706 $ 362,838 341,364,147 $ 341,364,147 13,670,743 —

1,375,174 1,375,174 510,000 510,000 47,73047,730 49,15049,150 7,661,150 7,661,150 84,134,023 84,134,023 901,769 901,769 124,211,878 124,211,878 — — 34,335,393 34,335,393 663,264 663,264

2,755,091 2,755,091 1,732,388 1,732,388 200,620 200,620 2,119 2,119 — — — — 1,472,876 1,472,876 1,897 1,897

4,356 9,061,664

10,809 6,164,991 9,061,664 9,061,664

6,164,991 6,164,991

Obligations under finance leases, Obligations excluding Obligations under current under finance installments finance leases,leases, excluding excluding current current installments installments 6,922 Total current liabilities 5,614,329 Operating lease liabilities Operating Operating lease liabilities lease liabilities 559,258 Capital leaseloan obligation, netexcluding ofNOAA current portion — NOAA CDQ payable, NOAA CDQ current loan CDQ portion payable, loan payable, excluding excluding current current portion portion 34,831,342 5,580,509 5,614,329 3,325,000

9,124 6,922 6,922 5,414,754 700,551559,258 559,258 2,047 34,831,342 — 34,831,342 5,580,509 — 5,580,509 5,416,801 3,325,000 3,325,000 3,325,000

9,124 9,124 700,551 700,551 — — — — 3,325,000 3,325,000

300,759,627 53,364,695

283,004,569 10,199,666 53,364,695 53,364,695

10,199,666 10,199,666

306,373,956 287,999,452

288,421,370 302,615,040 287,999,452 287,999,452

302,615,040 302,615,040

341,364,147

312,814,706 $ 341,364,147 $ 341,364,147

312,814,706 312,814,706

Total current Total current liabilities liabilities

Guaranty liability, excluding current Guaranty Guaranty portion liability, liability, excluding excluding current current portion portion Total liabilities Long term obligation – pier replacement Long term Long obligation term obligation – pier–replacement pier replacement

Net assets, without donor restrictions Total liabilities

Total liabilities Total liabilities

Totaldonor liabilities and assets, net assets Net assets, without restrictions Net Net assets, without without donordonor restrictions restrictions Total liabilities and net assets Total liabilities Total liabilities and net and assets net assets

$ $

COD

10%

312,814,706 312,814,706

288,421,370 $ 2,755,091 $ 4,458,320 4,458,320 1,732,388 1,593,573 1,593,573 200,620 128,845 128,845 2,119 2,201 2,201 2,914,510 —985,236 985,236 — 1,400,108 1,400,108 2,389,529 1,472,876 126,824 126,824 2,950 1,897 366,557 366,557 96,956

Security deposits Total current liabilities

75%

58,925,175 58,925,175

306,373,956 4,458,320 1,593,573 128,845 2,201 2,595,973 985,236 1,400,108 2,528,478 126,824 2,047 366,557 483,475

$

POLLOCK

CRAB

15%

See accompanying notes to consolidated See accompanying See accompanying financialnotes statements. notes to consolidated to consolidated financial financial statements. statements.

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 23 3 3

3

3

FINANCIAL DISCLOSURES

Consolidated Statements of Activities (Income Statement) 2023

Coastal Villages Region Fund & Subsidiaries YEARS ENDED DECEMBER 31, 2023 AND 2022

2022

PROGRAMS 2 022 3& 02PROJECTS, 32 02 3 2 0220322302 3 oa&g Pr ogr amPsr ogPrraom gPrsGENERAL a ro mgsr aPmrPo srgorPgarrm m s rsams FISHING and pr oaj encdtaspn,rdoADMINISTRATIVE jp aen rco dtjsep,cra o t snjae,dncd ptasrn po ,d rj o epjcerto csjt,esc, t s , OPERATIONS 2 02 3

TOTAL

FISHING OPERATIONS

PROGRAMS & PROJECTS, 2 02 2 2 022 02 22 02 2 2 0220222202 2 oag PGENERAL r ogr amPsr ogPrrao& m gPrsa ro mgsr aPmrPo srgorPgarrm m s rsams pjcerto and pr oaj encdtaspn,rdojp aen rco dtjsep,cra o t snjae,dncd ptasrn po ,d rj o eTOTAL csjt,esc, t s , ADMINISTRATIVE

seh seh Fi s hi ng Fi s hFi n i sghiFni g s hi ngFi sFh i si h nFgign gnienrgalgaenndg ee r anlegare nan d l ean r ad gl eg ann eed ng reaerlnaae lnradanldand Fi s hi ng Fi s hFi n i sghiFni g s hi ngFi sFh i si h nFign gni n eg r algaenndg ee r anlegare nan d l ean r ad gl eg ann eed ng reaerlnaae lnradanldand e asntiisnoin ai vd e asntiisnoin ai vd ope r at i oonpseo r aptei oroanp tsieornasto i oponepsreaortpa iao tdinro m satsd r am taiivd nem i s tian rdaim st itvirne aitasidvtam redam itn in sem ti sriatnrtia isvtteiTrvaoettiavle Tot aTlot aT l ot al ToTto atlTao lotpael r at i oonpseo r aptei oroanp tsieornasto i oponepsreaortpa iao tdinro m satsd r am taiivd nem i s tian rdaim st itvirne aitasidvtam redam itn in sem ti sriatnrtia isvtteiTrvaoettiavle Tot aTlot aT l ot al ToTto atlTao l t al

Revenue and Gains (losses): Revenue and gains (losses): Revenue Revenue and Revenue Revenue gains andRevenue and (losses): gains Revenue and gains (losses): gains and (losses): andgains (losses): gains (losses): (losses): Seafood sales Seafood Seafood sales Seafood Seafood sales sales Seafood Seafood sales sales sales Quota and profit share income Quota Quota andQuota profit and Quota and share profit Quota and Quota profit income share profit and share and income profit share profit income share income share income income Interest income InterestInterest income Interest Interest income income Interest Interest income income income Rent Rent Rent RentRent Rent Rent Community service centers Community Community Community service Community Community service centers Community service service centers centers service service centers centers centers Powersports sales Powersports Powersports Powersports sales Powersports Powersports sales Powersports sales sales sales sales Residential construction Residential Residential Residential construction Residential construction Residential Residential construction construction construction construction Loss on asset impairment Loss onLoss asset Loss onimpairment Loss asset on asset on Loss impairment Loss asset impairment ononasset impairment asset impairment impairment Gain (loss) on of assets Gain (loss) Gain Gain on (loss) Gain disposal (loss) on(loss) Gain disposal on Gain ofdisposal on (loss) assets (loss) disposal of onon assets of disposal disposal assets ofdisposal assets ofofassets assets Tendering income Tendering Tendering Tendering income Tendering income Tendering Tendering income income income income Vessel management income Vessel Vessel management Vessel management Vessel management Vessel management Vessel income management income management income income income income Other Other Other Other OtherOther Other

$72,094,317 72,094,317 — 72,094,317 77,604,319 — 77,604,3 $ 72,094,317 $ 72,094,317 $ 72,094,317 $ 72,094,317 $ $ 72,094,317 — — — 72,094,317 —— —72,094,317 72,094,317 72,094,317 72,094,317 72,094,317 77,604,319 77,604,319 77,604,319 77,604,319 77,604,319 77,604,319 — — — 77,604,319 —— —77,604,319 77,604,319 77,604,319 77,604,319 77,604,319 1,959,167 1,450,288 3,409,455 706,785 4,422,186 5,128, 1,959,167 1,959,167 1,959,167 1,959,167 1,959,167 1,959,167 1,450,288 1,450,288 1,450,288 1,450,288 1,450,288 1,450,288 3,409,455 3,409,455 3,409,455 3,409,455 3,409,455 3,409,455 706,785 706,785 706,785 706,785 706,785 706,785 4,422,186 4,422,186 4,422,186 4,422,186 4,422,186 4,422,186 5,128,971 5,128,971 5,128,971 5,128,971 5,128,971 5,128,971 933,067 933,067 — — 147,731 147,731 147, — — — — —933,067 — — 933,067 933,067 933,067 933,067 933,067 933,067 933,067 933,067 933,067 933,067 933,067 — — — —— 147,731 147,731 147,731 147,731 147,731 147,731147,731 147,731 147,731 147,731 147,731 — 1,459,447 1,459,447 — 113,072 113,0 — — — — 1,459,447 —— 1,459,447 1,459,447 1,459,447 1,459,447 1,459,447 1,459,447 1,459,447 1,459,447 1,459,447 1,459,447 1,459,447 — — — — —113,072 — 113,072 113,072 113,072 113,072 113,072113,072 113,072 113,072 113,072 113,072 113,072 819,878 819,878 — 862,173 862, — — — — —819,878 — — 819,878 819,878 819,878 819,878 819,878 819,878 819,878 819,878 819,878 819,878 819,878 — — — —862,173 — — 862,173 862,173 862,173 862,173 862,173 862,173 862,173 862,173 862,173 862,173 862,173 5,796,180 5,796,180 — — — — — 5,796,180 —— —5,796,180 5,796,180 5,796,180 5,796,180 5,796,180 5,796,180 5,796,180 5,796,180 5,796,180 5,796,180 5,796,180 — — — —— — — — — — —— — — — — — —— 1,005,500 1,005,500 — 483,979 483,9 — — — — 1,005,500 —— —1,005,500 1,005,500 1,005,500 1,005,500 1,005,500 1,005,500 1,005,500 1,005,500 1,005,500 1,005,500 1,005,500 — — — —483,979 — — 483,979 483,979 483,979 483,979 483,979 483,979 483,979 483,979 483,979 483,979 483,979 (183,176) — — (183,176) (183,176) — (183,176) (183,176) (183,176) (183,176) (183,176) (183,176) — — — —— (183,176) (183,176) (183,176) (183,176) (183,176) — — — —— — — — — — —— — — — — — —— 1,955500 500500500 500 500 2,455 62,408 (4,829) 57,5 1,955 1,955 1,955 1,9551,955 1,955 500 2,455 2,455 2,455 2,4552,455 2,455 62,40862,408 62,408 62,408 62,408 62,408 (4,829)(4,829) (4,829) (4,829) (4,829) (4,829) 57,57957,579 57,579 57,579 57,579 57,579 1,191,500 — 1,191,500 1,678,100 — 1,678,1 1,191,500 1,191,500 1,191,500 1,191,500 1,191,500 1,191,500 — — — — — 1,191,500 — 1,191,500 1,191,500 1,191,500 1,191,500 1,191,500 1,678,100 1,678,100 1,678,100 1,678,100 1,678,100 1,678,100 — — — — — 1,678,100 — 1,678,100 1,678,100 1,678,100 1,678,100 1,678,100 348,687 — — 348,687 348,687 1,258,275 — 1,258,2 348,687 348,687 348,687 348,687 348,687 348,687 — — — ——348,687 348,687 348,687 348,687 348,687 1,258,275 1,258,275 1,258,275 1,258,275 1,258,275 1,258,275 — — — — 1,258,275 — — 1,258,275 1,258,275 1,258,275 1,258,275 1,258,275 914,932 421,133 1,336,065 930,622 274,576 1,205,1 914,932 914,932 914,932 914,932 914,932 914,932 421,133 421,133 421,133 421,133 421,133 421,133 1,336,065 1,336,065 1,336,065 1,336,065 1,336,065 1,336,065 930,622 930,622 930,622 930,622 930,622 930,622 274,576 274,576 274,576 274,576 274,576 274,576 1,205,198 1,205,198 1,205,198 1,205,198 1,205,198 1,205,198

Total Revenue and Gains (losses) Total revenue and gains (losses) Total revenue Total Total revenue Total and revenue gains Total revenue Total and and (losses) revenue gains revenue and gains (losses) gains and (losses) and gains (losses) gains (losses) (losses) Expenses and Losses: Expenses and losses: Expenses Expenses Expenses andExpenses losses: and Expenses and Expenses losses: and losses: losses: and andlosses: losses: Cost ofsales seafood sales Cost ofCost seafood Cost ofCost seafood ofsales seafood of Cost Cost seafood sales ofof sales seafood seafood sales sales Programs and projects Programs Programs Programs andPrograms projects and Programs and Programs projects and projects projects and andprojects projects Fishing operating expenses FishingFishing operating Fishing Fishing operating operating expenses Fishing Fishing operating expenses operating expenses operating expenses expenses expenses General and administrative General General and General administrative General andand General administrative General and administrative administrative and andadministrative administrative Powersports operations Powersports Powersports Powersports operations Powersports Powersports operations Powersports operations operations operations operations Property management Property Property management Property Property management management Property Property management management management Total expenses and losses Total Expenses and Losses Total expenses Total Total expenses Total expenses andTotal expenses losses Total and expenses and expenses losses and losses losses and andlosses losses

76,327,382 11,885,993 88,213,375 82,240,509 6,298,888 88,539,3 76,327,382 76,327,382 76,327,382 76,327,382 76,327,382 76,327,382 11,885,993 11,885,993 11,885,993 11,885,993 11,885,993 11,885,993 88,213,375 88,213,375 88,213,375 88,213,375 88,213,375 88,213,375 82,240,509 82,240,509 82,240,509 82,240,509 82,240,509 82,240,509 6,298,888 6,298,888 6,298,888 6,298,888 6,298,888 6,298,888 88,539,397 88,539,397 88,539,397 88,539,397 88,539,397 88,539,397

32,428,317 — 32,428,317 33,388,219 — 33,388,2 32,428,317 32,428,317 32,428,317 32,428,317 32,428,317 32,428,317 — — — 32,428,317 —— —32,428,317 32,428,317 32,428,317 32,428,317 32,428,317 33,388,219 33,388,219 33,388,219 33,388,219 33,388,219 33,388,219 — — — 33,388,219 —— —33,388,219 33,388,219 33,388,219 33,388,219 33,388,219 13,648,807 13,648,807 — 12,529,509 12,529,5 — — — — 13,648,807 —— — 13,648,807 13,648,807 13,648,807 13,648,807 13,648,807 13,648,807 13,648,807 13,648,807 13,648,807 13,648,807 13,648,807 — — — 12,529,509 —— — 12,529,509 12,529,509 12,529,509 12,529,509 12,529,509 12,529,509 12,529,509 12,529,509 12,529,509 12,529,509 12,529,509 36,754,454 — 36,754,454 36,993,948 — 36,993,9 36,754,454 36,754,454 36,754,454 36,754,454 36,754,454 36,754,454 — — — — 36,754,454 —— 36,754,454 36,754,454 36,754,454 36,754,454 36,754,454 36,993,948 36,993,948 36,993,948 36,993,948 36,993,948 36,993,948 — — — — 36,993,948 —— 36,993,948 36,993,948 36,993,948 36,993,948 36,993,948 1,332,014 7,124,921 8,456,935 1,055,293 7,245,798 8,301,0 1,332,014 1,332,014 1,332,014 1,332,014 1,332,014 1,332,014 7,124,921 7,124,921 7,124,921 7,124,921 7,124,921 7,124,921 8,456,935 8,456,935 8,456,935 8,456,935 8,456,935 8,456,935 1,055,293 1,055,293 1,055,293 1,055,293 1,055,293 1,055,293 7,245,798 7,245,798 7,245,798 7,245,798 7,245,798 7,245,798 8,301,091 8,301,091 8,301,091 8,301,091 8,301,091 8,301,091 6,237,008 6,237,008 — — — — — 6,237,008 —— —6,237,008 6,237,008 6,237,008 6,237,008 6,237,008 6,237,008 6,237,008 6,237,008 6,237,008 6,237,008 6,237,008 — — — —— — — — — — —— — — — — — —— 2,725,831 2,725,831 — 1,141,203 1,141,2 — — — — 2,725,831 —— —2,725,831 2,725,831 2,725,831 2,725,831 2,725,831 2,725,831 2,725,831 2,725,831 2,725,831 2,725,831 2,725,831 — — — 1,141,203 —— —1,141,203 1,141,203 1,141,203 1,141,203 1,141,203 1,141,203 1,141,203 1,141,203 1,141,203 1,141,203 1,141,203 70,514,785 29,736,567 100,251,352 71,437,460 20,916,510 92,353,9 70,514,785 70,514,785 70,514,785 70,514,785 70,514,785 70,514,785 29,736,567 29,736,567 29,736,567 29,736,567 29,736,567 29,736,567 100,251,352 100,251,352 100,251,352 100,251,352 100,251,352 100,251,352 71,437,460 71,437,460 71,437,460 71,437,460 71,437,460 71,437,460 20,916,510 20,916,510 20,916,510 20,916,510 20,916,510 20,916,510 92,353,970 92,353,970 92,353,970 92,353,970 92,353,970 92,353,970

in assets net assets before equity inofincome ofinvestees equity method investees 5,812,597 (17,850,574) (12,037,977) 10,803,049 (14,617,622) (3,814,5 Change Change inChange netChange assets in net in Change Change net before assets inChange net assets in before assets equity innet before net before equity in assets income equity before in before equity income inofincome equity equity in equity income ofinequity method of inincome income equity method equity investees of method ofequity method equity investees method method investees investees investees 5,812,597 5,812,597 5,812,597 5,812,597 5,812,597 5,812,597 (17,850,574) (17,850,574) (17,850,574) (17,850,574) (17,850,574) (17,850,574) (12,037,977) (12,037,977) (12,037,977) (12,037,977) (12,037,977) (12,037,977) 10,803,049 10,803,049 10,803,049 10,803,049 10,803,049 10,803,049 (14,617,622) (14,617,622) (14,617,622) (14,617,622) (14,617,622) (14,617,622) (3,814,573) (3,814,573) (3,814,573) (3,814,573) (3,814,573) (3,814,573 Equity inofincome ofinvestees equity method investees 4,026,094 — 4,026,094 5,669,986 — 5,669,9 Equity Equity in income Equity in Equity income inofincome Equity equity in Equity income ofinequity method of inincome income equity method equity investees of method ofequity method equity investees method method investees investees investees 4,026,094 4,026,094 4,026,094 4,026,094 4,026,094 4,026,094 — — — — 4,026,094 — — 4,026,094 4,026,094 4,026,094 4,026,094 4,026,094 5,669,986 5,669,986 5,669,986 5,669,986 5,669,986 5,669,986 — — — — 5,669,986 — — 5,669,986 5,669,986 5,669,986 5,669,986 5,669,986 in assets net assets Change Change inChange netChange assets in net in Change Change net assets inChange net assets inassets innet net assets

$

$ 9,838,691 9,838,691 (17,850,574) (8,011,883) 16,473,035 (14,617,622) 1,855,4 9,838,691 $ $9,838,691 $9,838,691 9,838,691 $ $ 9,838,691 (17,850,574) (17,850,574) (17,850,574) (17,850,574) (17,850,574) (17,850,574) (8,011,883) (8,011,883) (8,011,883) (8,011,883) (8,011,883) (8,011,883) 16,473,035 16,473,035 16,473,035 16,473,035 16,473,035 16,473,035 (14,617,622) (14,617,622) (14,617,622) (14,617,622) (14,617,622) (14,617,622) 1,855,413 1,855,413 1,855,413 1,855,413 1,855,413 1,855,413

Net assets atwithout beginning ofwithout the year, without donor restrictions Net assets NetNet at assets beginning Net assets at assets Net beginning at Net beginning assets of at assets the beginning at year, ofatbeginning the of beginning the year, of the year, without ofyear, donor ofwithout the the year, restrictions donor year, donor without without restrictions donor restrictions donor restrictions donor restrictions restrictions

302,615,040 302,615,040 302,615,040 302,615,040 302,615,040 302,615,040 302,615,040

Cumulative effect ofinprincipal change in accounting principal -ASC326 adoption of ASC326 Cumulative Cumulative Cumulative effect Cumulative effect of Cumulative Cumulative change effect of effect change ofinchange effect accounting of effect change inof accounting in ofchange accounting change accounting inin principal accounting accounting -principal adoption principal - adoption -principal of principal adoption -ASC326 adoption of- ASC326 -adoption ofadoption of ASC326 ofofASC326 ASC326 Net assets atwithout end ofwithout the year, without donor restrictions Net assets NetNet at assets end Net assets at of assets Net end the at Net end assets year, of at assets end the of without at the year, of atend the end year, ofyear, donor ofwithout the the year, restrictions donor year, donor without without restrictions donor restrictions donor restrictions donor restrictions restrictions

24 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

300,759,6 300,759,627 300,759,627 300,759,627 300,759,627 300,759,627 300,759,627

(6,603,705) (6,603,705) (6,603,705) (6,603,705) (6,603,705) (6,603,705) (6,603,705) $

$ 287,999,452 287,999,452 $ 287,999,452 $ $287,999,452 287,999,452 $ $287,999,452 287,999,452

— $

— — —

——

$ 302,615,040 302,615,0 $302,615,040 $ $302,615,040 302,615,040 $ $302,615,040 302,615,040

2023 ANNUAL REPORT

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.

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.

2023

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).

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.

LARSON HUNTER

RICHARD JUNG

CHAIRMAN

VICE CHAIRMAN

SCAMMON BAY

NAPAKIAK

JOHN SAMUEL

GABRIEL OLICK

SECRETARY

TREASURER

PLATINUM

TUNTUTULIAK

CARLIE BEEBE

GEORGE CHUCKWUK

EXEC COMMITTEE

EXEC COMMITTEE

EEK

KIPNUK

ALBERT WILLIAMS

ROBERT PANRUK CHEFORNAK

EXEC COMMITTEE

MEKORYUK ALFRED ULROAN CHEVAK

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.

Board of Directors

ERIC OLSON, SR. HOOPER BAY

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.

ANDREW KIUNYUA KWIGILLINGOK LISA CHARLES NEWTOK NICHOLAI STEVEN OSCARVILLE SAM A. CHANAR TOKSOOK BAY

EVAN S. EVAN GOODNEWS BAY JERRY IVON KONGIGANAK JACKIE B. LARSON NAPASKIAK ISADORE ANTHONY NIGHTMUTE JOHN W. MATTHEW QUINHAGAK ALMA KANRILK TUNUNAK

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 25

2023 ANNUAL REPORT

2024 Board of Directors LARSON HUNTER

RICHARD JUNG

JOHN SAMUEL

GABRIEL OLICK

CHAIRMAN

VICE CHAIRMAN

SECRETARY

TREASURER

SCAMMON BAY

NAPAKIAK

PLATINUM

TUNTUTULIAK

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

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

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

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

GEORGE CHUCKWUK

EVAN S. EVAN

ALBERT WILLIAMS

EXECUTIVE COMMITTEE

EXECUTIVE COMMITTEE

EXECUTIVE COMMITTEE

ROBERT PANRUK CHEFORNAK

KIPNUK

GOODNEWS BAY

MEKORYUK

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

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

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

2022 - 2027

ALFRED ULROAN CHEVAK

CARLIE BEEBE EEK

ERIC OLSON, SR. HOOPER BAY

JERRY IVON KONGIGANAK

2022 - 2027

2024 - 2029

2024 - 2029

2024 - 2029

ANDREW KIUNYA KWIGILLINGOK

JACKIE B. LARSON NAPASKIAK

LISA CHARLES NEWTOK

ISADORE ANTHONY NIGHTMUTE

2020 - 2025

2023 - 2025

2020 - 2025

2022 - 2027

NICHOLAI STEVEN OSCARVILLE

JOHN W. MATTHEW QUINHAGAK

SAM A. CHANAR TOKSOOK BAY

ALMA KANRILAK TUNUNAK

2024 - 2029

2020 - 2025

2024 - 2029

2019 - 2025

26 | COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023

BOARD OF DIRECTORS

A Message from the Chairman The CDQ program as we know it is under threat. As one of the

about CDQ and salmon bycatch on social media.

very few successful programs to deliver economic opportunity for rural Alaska communities, we cannot stand by while

We are proud to operate one of the cleanest fleets with the

deliberately misinformed attacks on our sustainable fishing

lowest bycatch rates. We cannot control the climate change that

practices risk shutting down our operations, jobs and programs.

scientists say is the leading cause of low salmon returns. We know

LARSON HUNTER, CHAIRMAN COASTAL VILLAGES REGION FUND

there are other contributors like intercept fishing. But we cannot We know that residing in western Alaska has its challenges. The

remain quiet while angry voices seek to shut down our fishing,

cost of living is extreme, with goods often double or triple those on

and our economic lifelines, ignoring the science and achieving

the shelves in Anchorage. Although rich in subsistence, only a few

nothing to restore the salmon runs. What happens to all the jobs

are fortunate to have jobs with the schools, the Native tribes and

we provide in the region? Are we ok with going back into the

corporations, or municipalities. For those unable to find work, they

welfare system? What happens to all the services and programs

rely on public assistance such as Temporary Assistance for Needy

like People Propel, or our mechanic/welders jobs and services, or

Families (TANF) and the Energy Assistance Program (EAP). For

our Youth to Work training?

many families, this reality is not a choice, but a lack of opportunity.

We at CVRF insist that our pollock trawl captains avoid salmon The CDQ program was born of this reality. Sustainably

at all costs. And they do – we operate one of the lowest salmon

harvesting fish and crab shifted control of some of the Bering

bycatch vessels in the whole industry.

Sea fishery to us Alaskans, which in turn has provided economic opportunities to alleviate poverty in our respective regions.

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

CVRF has tried various ventures over the years. Some worked,

to deliver economic benefits and hope if we do not speak up to

others didn’t, and some had to evolve into what we have today.

defend CDQ and our fishing practices.

The People Propel® program is one that took modifying to get it right, and now, a decade later, has injected over $50 million to

The Magnuson-Stevens Act and the CDQ program ensure

help residents purchase ATV’s, snow machines, outboard motors,

science-based fishing and management to sustain the resource

boats and various household appliances. It is an example of the

for generations. I am proud to serve our communities, alongside

power of CDQ to provide relief from the high cost of living.

the CVRF board of directors who also call these communities home. Together we guide CVRF operations and investments that

Revenues from Bering Sea fishing also have enabled us to

have made our CDQ one of the most impactful federal mandates

build and run Community Service Centers (CSC). They provide

in Alaska, alongside others such as federal contracting rights for

year-round employment and house mechanic shops where we

Alaska Native Corporations, and tribal recognition to open access

provide vehicle services and workspace. $3.9 million in CSC

to federal funding.

wages were paid in 2023 for essential mechanic and welder jobs supporting our communities, and serving our neighbors who are

After 30 years, the CDQ program is an economic success story

not part of CVRF.

that will rapidly become an epic catastrophe for Western Alaska

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

if politics wins over science. There is no plan B to replace the With all that we do for our region now, and the more that we

jobs and programs that would go away if fishing is shut down. As

hope to do, we must meet the challenges that are before us—

always, I’m open to discussion for those that want to share their

from climate change, erosion and reduced returns of salmon

thoughts or hear any of mine. Please do not hesitate to reach out

in some parts of western Alaska, to combating misinformation

to me on anything related to CDQ.

COASTAL VILLAGES REGION FUND | ANNUAL REPORT 2023 | 27

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