SAMOA AIRPORT AUTHORITY

ANNUAL REPORT 2013

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SAMOA AIRPORT AUTHORITY

TELEPHONE: +685 23201

FAX: +685 24281

AFTN: NSFAYDA

www.samoaairports.ws

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Honourable Speaker of the House

Legislative Assembly

MULINUU

In accordance with Section 45 (4) of the Samoa Airport Authority Act 2012 and the Public Bodies (Performance and

Accountability) Regulation 2002, Schedule 6 paragraph 6.7, I hereby submit to the Legislative Assembly the Annual Report

and Audited Accounts of the Samoa Airport Authority for the year ended 30 June 2013.

Ma lo’u fa’aaloalo lava,

Honourable Manu’alesagalala Enokati Posala

Minister of Works, Transport and Infrastructure

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Table of Contents

CHAIRMAN’S MESSAGE …………………………………………………………………………………………………………………………………….5

GENERAL MANAGER’S REPORT……………………………………………………………………………………………………………………………..6

AUDITED FINANCIAL STATEMENTS……………………………………………………………………………………………………………………..16

DIRECTORS’ REPORT ……………………………………………………………………………………………………………………………………… 17

AUDITOR’S REPORT …………………………………………………………………………………………………………………………………………18

INCOME STATEMENT FOR THE YEAR ENEDED 30 JUNE 2013 …………………………………………………………………………..19

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013 …………………………………………………….20

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013 ……………………………………………………………………………..21

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013 …………………………………………………………………23

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 …………24

SUPPLEMENTARY INFORMATION NOT REQUIRED FOR STATUTORY PURPOSES ……………………………………………….32

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CHAIRMAN’S MESSAGE

It gives me great pleasure to present the Annual Report for the Samoa Airport Authority for the year ended 30th March 2013.

Sustainable growth and ensuring the provision of professional services summarises the Authority’s attitude in gauging its

developments and indicators for the past year. The Board of Directors, Management and their staff have managed to steer

it’s operation forward. I, for one will testify to the fact that they have done an exceptional job ensuring the Authority strives

to serve its customers efficiently while complying with International Civil Aviation Legislations and Regulations.

There are fundamental and innovative changes forthcoming for the infrastructure of the Authority which are essential. Our progress will become increasingly visible to our stakeholders, as customers experience the tangible benefits of the improvements we have made. I am confident that these changes will deliver a more valuable aerodrome. The deliverance and execution of changes requires hard work, perseverance and most of all commitment. I thank the Board of Directors, Management and their staff sincerely for their valued contributions over the past financial year. May God Bless us All! Soifua,

Logo Silao Lemana CHAIRMAN

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GENERAL MANAGER’S REPORT

The Authority in the past year had continued to focus its attention on achieving its vision of becoming the most efficient, safe and secured small island airport in the region. To achieve this vision, we had concentrated on improving our service delivery in terms of cost and quality and to ensure that we comply with all applicable standards. Summarised below are some of the achievements for the period under review;

1. Terminal Upgrades Routine maintenance and refurbishment were done during the year to improve the standard of Terminal Building. This includes the extension and refurbishment of all bathrooms at the Terminal and the re-positioning of the Security Area and the Immigration Area in the departure area. Rehabilitation work was also done to the walkways that were damaged by Cyclone Evans. Additional work was also done to expand the departure lounge to accommodate a new Coffee Shop by relocating the Duty Free Shop.

2. New Chairs

Replacement chairs for the departure lounge were acquired to improve the standard of furniture at the Airport

3. New VIP Building A new VIP Building was approved for construction in preparation for the SIDS meeting which was held in Samoa.

4. Aleipata Airport

Aeronautical studies for the Aleipata Airport had been completed.

5. Car Park Ticketing The tender result for the procurement of a new car park ticketing system had been approved.

6. Communication Equipment

A new VHF communication repeater was installed at Mount Vaea to improve the quality of Communication between Controllers and aircrafts.

7. Security Fence

Replace the chain link fence along the coast with a new fence made from non-corrosive materials.

8. Vehicles/Tractor/Bus. 2 replacement vehicles were acquired for the RFS and AVSEC Unit. A new bus was also acquired for the transportation of workers to and from the office.

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9. Financials The year under review saw an increase in revenues by 38% while expenses rose by approximately 11%. As a result a profit of $1,102,380 was realized in the financial year ended June 2013. This is the first time that the Authority had managed to earn a profit since 2001. The net profit percentage had increased from minus 14% in 2012 to a positive 8% in 2013. The liquidity position of the Authority in the short term remains stable. The current ratio had slightly improved from 2.6 : 1 in 2012 to 2.7 : 1 in 2013. The Authority is financing 93% of assets in 2013 compared to 92% in 2012. The increase in self-financing of assets had resulted in the reduction of cash balances by 31% in 2013 compared to 2012. In summing up, I am excited by the potential for future growth of the Authority. There will always be challenges but I am confident that with the support of the Board of Directors, Management and Staff, the road ahead can reap rewards for the Government, Industries and the people of Samoa.

ACCOMPLISHMENTS

Terminal Upgrades

Renovations were made to the Arrival and Departure Lounges

New chairs for the Departure area

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Re-positioning of Security and Immigration check points

New walkway to replace walkway damaged by Cyclone Evan

Before …

and After

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Refurbishment and extension of existing bathrooms

New VIP building

Began construction of new VIP building.

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Aleipata Airport

Aeronautical study for the development of Aleipata Airport was commissioned and completed

Integrated Safety Management Systems (SMS)

A draft Integrated Safety Management System incorporating Finance, Safety and Occupational Health and Safety is

being reviewed for implementation in 2015 Financial year.

Car Park Ticketing System

Tender for a new computerised Car Park Ticketing system was approved.

Communications Equipment Acquired a new portable stand-by generator for Mt. Fiamoe. A new Very High Frequency (VHF) Communication Repeater installed at Mt. Vaea.

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Security Systems Enhancement

Two lane walk-through metal detectors installed at Security check point

Start installation of a new vinyl security fence on seaside

Two new four wheel drive vehicles acquired for Security and Rescue Fire patrols

AVIATION SECURITY SERVICES

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RESCUE FIRE SERVICES

Departure Tax

Departure tax was incorporated into the price of airline tickets

New Resources

Acquired a new bus for staff transportation

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and acquired a Tractor for ground maintenance.

Ma lo’u fa’aaloalo lava,

Magele Hoe Viali

GENERAL MANAGER

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AIRCRAFT MOVEMENT

YEAR 2011 2012 2013

Aircraft Movement 4,726 4,998 4375

% Change -2% 1% -12%

Aircraft 4,726 4,998 4375

There was a slight decrease in the aircraft movement in comparison to the previous year, possibly due to milestone

events that occurred in 2012; i.e 50th Anniversary Independence celebrations and the increase in airfares thus being

imposed onto the travellers which in turn limited many of the travelling public.

0

100

200

300

400

500

600

700

Aircraft Movement

Aircraft Movement

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SIX YEAR COMPARISON – Passenger Movement

YEAR 2008 2009 2010 2011 2012 2013

Arrivals 166,423 169,751 151,688 152,111 151,214 138,079

Departures 161,003 165,227 151,575 152,232 151,880 139,911

0

50,000

100,000

150,000

200,000

2008 2009 2010 2011 20122013

Trav

elli

ng

Pas

sen

gers

Passenger Movements

Arrivals

Departures

A slight decline in the travelling public for obvious costs imposed upon travelers.

o

t

a

l

r

e

c

o

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SAMOA AIRPORT AUTHORITY

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

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SAMOA AIRPORT AUTHORITY

DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2013

The directors present their report together with the financial statements of the Authority for the year ended 30 June 2013 and the auditor’s report thereon.

Directors

As of the date of this report, following are the newly appointed directors to control and oversee the Authority's direction for the next three year term.

Logo Silao Lemana (Chairman) Samau Ieru Lokeni

Vui Sebastian Mariner Solialofi Vaipou Harry Porter Vaatuitui Apete Leonidas Meredith

Tuala Tommy Stancil Samoa Roy Lee

Principal activities The principal activities of the Authority are to establish, improve, maintain, operate and manage aerodromes

in addition to associated services and facilities in connection with the operation of aerodromes under its ownership or with the operation of any aircraft engaged in civil aviation.

State of affairs The directors are of the view that the attached statement of financial position gives a true and fair view of the

state of affairs of the Authority as at 30 June 2013 and that the income statement gives a true and fair view of the result and cash flows of the Authority for the year then ended.

Operating results The operating profit for the year ended 30 June 2013 was $1,102,380 (2012: loss $1,342,824)

Events subsequent to balance date There are no other events which have arisen in the interval between the end of the financial year and the date

of this report which in the opinion of the directors have affected significantly the operations of the Authority, the results of those operations, or the state of affairs of the Authority in subsequent years.

On behalf of the Board

………………………………..

Chairman of Board of Directors

Director

30 November 2013 Apia

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SAMOA AIRPORT AUTHORITY

INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

2013 2012

Notes $ $

INCOME Operating income

13 12,693,33 9,113,467 Interest income

75,290 51,515

Defer income amortisation

10 319,600 319,600 Dividend income

- -

Gain on disposal of fixed assets

- -

13,088229 9,484,581

EXPENSES Audit fees

25,732 19,705

Bad and doubtful debts

90,091 69,627 Departure tax commission

114,237 39,411

Depreciation

11 3,044,229 2,791,733 Directors fees

15 42,159 23,500

Interest on loans

232,688 231,116 Loss on Sale of Fixed Assets

- 352,864

Operating expenses

8,436,713 7,299,449

11,985,849 10,827,406

Profit for the year

1,102,380 (1,342,824) Accumulated losses brought forward

(46,818,188) (45,475,364)

Accumulated losses carried forward

(45,715,808) (46,818,188)

The relevant notes on pages 5 to 12 form part of and are to be read in conjunction with this income statement.

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SAMOA AIRPORT AUTHORITY

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013

Contributed

Assets

Accumulated

Total

Capital

Revaluation

Profit/Loss)

Opening balance as at 1st July 2011 93,451,084

7,372,697

(45,475,364)

55,348,417

Net loss for the year (restated)

(1,342,824)

(1,342,824)

Balance at 30th June 2012

93,451,084

7,372,697

(46,818,188)

54,005,593

Net profit for the year

___________

_________

1,102,380

1,102,380

Balance at 30th June 2013

93,451,084

7,372,697

(46,715,808)

55,107,973

The accompany notes form part of this Statement of Changes in Equity.

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SAMOA AIRPORT AUTHORITY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013

2013 2012

Notes $ $

CURRENT ASSETS Cash on hand and at bank

1,308,616 2,606,940

Term deposits

3 1,387,395 1,343,901 Trade debtors

4 1,481,109 866,203

Other debtors and prepayments

5 443,946 183,691 Inventories

7 155,535 129,556

Total current assets

4,776,601 5,130,291

NON-CURRENT ASSETS Property, plant and equipment

11 51,566,590 51,334,224 Investment

14 2,939,000 2,204,000

Total non-current assets

54,505,590 53,538,224

TOTAL ASSETS

59,282,191 58,668,515

CURRENT LIABILITIES Creditors

175,497 146,968

Other creditors and accruals

6 279,759 584,915 Payable to Treasury department

13 743,235 743,235

Current portion of term loans

9 19,391 19,092 Provision for Annual Leave

200,028 451,301

Related party payables

16 367,500 -

1,785,410 1,945,512

NON-CURRENT LIABILITIES Term loans

9 2,064,627 2,073,630

Deferred income

10 324,181 643,781 Total non-current liabilities

2,388,808 2,717,411

TOTAL LIABILITIES

4,174,218 4,662,923

NET ASSETS

$55,107,973 $24,436,183

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CAPITAL AND RESERVE

Government contribution

2 93,451,084 93,451,084 Asset revaluation reserve

11 7,372,697 7,372,697

Accumulated losses (Restated)

(45,715,808)

(46,818,188)

$55,107,973 $54,005,593

The relevant notes on pages 5 to 12 form part of and are to be read in conjunction with this statement of financial position. On behalf of the Board:

Chairman ……………………………

Director ……………..................

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SAMOA AIRPORT AUTHORITY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013

2013

2012

$

$

CASH FLOW FROM/(TO) OPERATING ACTIVITIES Cash received from customers

11,818,177

9,079,719

Cash paid to suppliers, expenses and wages (9,262,811)

(8,945,455)

Net cash flows from operating activities

2,555,366

134,264

CASH FLOW FROM/(TO) INVESTING ACTIVITIES Payments for purchases of property, plant and equipment (3,276,595)

(1,713,322)

Interest received on term deposits and ANZ current account 75,290

57,007

Proceeds from sale of property, plant and equipment -

64,586

Purchase of shares for Aggies

(367,500)

-

Net cash flows used in investing activities

(3,568,805)

(1,591,729)

CASH FLOW FROM/(TO) FINANCING ACTIVITIES Term loan repayments - NPF

(241,392)

(248,348)

Net cash flows used in investing activities

(241,392)

(248,348)

NET (DECREASE) IN CASH

(1,254,830)

(1,705,813)

Opening cash brought forward

3,950,841

5,656,654

ENDING CASH CARRIED FORWARD

2,696,011

3,950,841

Represented by: Cash on hand and at banks

1,308,616

2,606,940

Term deposits

1,387,395

1,343,901

2,696,011

3,950,841

-

The relevant notes on pages 5 to 12 form part of and are to be read in conjunction with this statement of cash flows.

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SAMOA AIRPORT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS

30 JUNE 2013

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with the requirement of the International Financial Reporting Standards adopted by the International Accounting Standards Board (IASB), and interpretations issued by the Standing Interpretations Committee of the IASB. BASIS OF PREPARATION

The accounts have been prepared on the basis of historical costs. The accounting policies have been consistently applied by the Authority. These financial statements are presented in Samoan Tala (SAT). PARTICULAR ACCOUNTING POLICIES

The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied.

a) Foreign currency Transactions in foreign currency are translated to Tala at the foreign exchange rates ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies at balance date are translated to Tala at exchange rates ruling at that date Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rates ruling at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to Tala at the exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognized in the income statement. b) Property, plant and equipment

(i) Owned assets Items of property, plant and equipment are stated at cost less accumulated depreciation.

Property that is being constructed or developed for future use is classified as work in progress under property, plant and equipment and stated at cost.

Where an item of property, plant and equipment comprises major components having different useful lives, they are accounted for as separate items of property, plant and equipment.

(ii) Depreciation

Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. The rates at which depreciation is charged are as follows:

Building 10 – 40 years

Runway, taxiways and aprons 20 years

10 - 40 years Plant and equipment 5 – 10 years

20 years

Motor vehicles 5 years

5 - 10 years Fences 10 years

5 years

Furniture and fittings 5 years

10 years Intangible 3 – 5 years

5 years

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c) Trade receivables Trade and other debtors are stated at their cost less impairment losses. The carrying amount of these assets is

reviewed at each balance date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated at balance date. An impairment loss (doubtful debts) is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. All impairment losses are recognized in the income statement. The recoverable amount of trade receivables is the estimated future cash flows expected from the asset.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.

d) Inventories Stocks are stated at the lower of cost and net realizable value.

The cost of inventories is based on the first-in first-out principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition.

e) Cash and cash equivalents

Cash and cash equivalents comprise of cash balances. Bank overdrafts that are repayable on demand and form an integral part of the Authority's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

f) Loans payable Loans payable are measured on initial recognition at the amount of the net proceeds

g) Provisions

A provision is recognized in the statement of financial position when the Authority has a present legal or constructive obligation as a result of past event, and it is probable that an outflow of economic benefits will be required to settle the obligation

h) Accounts payable Trade and other payables are recognized at cost.

i) Revenue

Revenue from departure taxes, duty free levies, landing fees, oil levies, parking fees, and rentals are recognized in the income statement on an accrual basis. Revenue from the rendering of services is recognized in the income statement when the significant risks and rewards of ownership have been transferred to the guest or customer. No revenue is recognized if there are significant uncertainties regarding recovery of the consideration due or the associated costs.

j) Expenses Salaries & Wages

Comprises of wages and salaries, bonuses, and leave payments paid to staff as well as the Authority's contribution of SNPF and ACC as required by law are recognized in the income statement.

Interest expense Interests on loan and overdraft accounts are recognized in the income statement.

Directors' fees and board expenses

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Annual fees for directors are taken up as Directors' fees, whereas sitting allowances and other costs incurred during board meetings, or relating to directors, are classified as board expenses.

k) Value added goods and services tax

Revenues, expenses, liabilities and assets are recognized net of the amount of value added goods and services tax (VAGST), except for receivables and payables which are recognized inclusive of VAGST. Where VAGST is not recoverable as an input tax it is recognized as part of the related asset or expenses.

l) Income tax The Authority is not subject to taxation

m) Changes in accounting policies

There have been no significant changes in accounting policies during the year.

n) Comparative information Comparative information has been restated where necessary to achieve consistency in disclosure with current financial

year amounts.

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SAMOA AIRPORT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS

30 JUNE 2013

2013

2012

$

$

2. CAPITAL - GOVERNMENT CONTRIBUTIONS Assets transferred to the Authority

53,567,663

53,567,663

Government contribution to the upgrading of Faleolo airport 9.132.633

9,132,633

Government contribution to the upgrading of Faleolo airport 30,750,788

30,750,788

(loan capitalisation)

93,451,084

93,451,084

The government through cabinet directive has approved the additional capitalisation on the 4th

April 2012, as per F.K. (12) 14 of the Authority’s term loan at

30th

June 2011, amounting #30,780,788.09. The capitalisation has increased government contribution from $62,700,296 to $93,451,084.09.

3. TERM DEPOSITS ANZ Bank (Samoa) Limited

576,299

560,877

Westpac Bank Samoa Limited

426,567

410,907

Samoa Commercial Bank

384,527

372,117

1,387,393

1,343,901

The term deposits with the ANZ Bank (Samoa) Limited, Westpac Bank Samoa Limited and Samoa Commercial Bank are invested for a period of twelve months. The interest rates are 2.75%, 3.25% and 5% respectively per annum. The term deposits with the ANZ Bank (Samoa) Limited and Westpac Bank Samoa Limited are pledged as security for the overdraft facilities. The Authority also established two additional investments with the Samoa Commercial Bank for a period of twelve months. The interest rates are 3.75% and 5% respectively per annum.

4. TRADE DEBTORS Total debtors

1,641,684

1,028,028

Provision for doubtful debts

(160,575)

(161,825)

Net debtors

1,481,109

866,203

Movements in the provision for doubtful debts were as follows: Balance at beginning of the year

161,825

92,198

Charged to income statement

-

69,627

Write off against provision

(1,250)

-

Balance at year end

160,575

161,825

5. OTHER DEBTORS AND PREPAYMENTS

Staff advances

29,763

18,870

Provision for doubtful debts

(14,734)

(14,734)

15,029

4,137

VAGST receivable

156,490

-

Prepayments and others

276,270

179,554

Provision for doubtful debts – other debtors

(3,843)

-

443,946

183.691

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Movement in provision:

Balance at beginning of the year

14,734

14,734

Charged to income statement

-

-

Write off against provision

-

-

Balance at year end

14,734

14,734

2013

2012

$

$

6. OTHER CREDITORS AND ACCRUALS Audit fees

49,922

54,522

Salaries and wages

142,858

178,401

VAGST payable

_

269,473

Other creditors

86,979

82,250

279,759

584,916

7. INVENTORIES Inventories represents supplies for the Airport operations.

Supplies for Rescue Fire and Services

40,823

89,104

Supplies for Technical Department

70,080

23,979

Other supplies

44,632

18,730

155,535

131,813

8. BANK OVERDRAFT

The Authority has cancelled overdraft facilities with ANZ Bank (Samoa) Limited and the Westpac Bank Samoa Limited. These overdraft facilities are used to be secured by the term deposits.

9. LONG TERM LOANS

2013

Current

Term

Total

-

Samoa National Provident Fund 19,391

2,064,627

2,084,018

$19,391

$2,064,627

$2,084,018

2012

Samoa National Provident Fund 19,092

2,073,630

2,092,722

$19,092

$2,073,630

$2,092,722

The term loan with Samoa National Provident Fund was fully drawdown in October 2004 and is secured by 30 acres of land at Faleolo Parcel 782 and Chattel over Instrument Landing system. Interest is charged at 11% per annum for a term of 20 years and the current loan repayment is $26,696 per month. (Previously $62,087 per quarter).

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SAMOA AIRPORT AUTHORITY

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2013

2013

2012

$

$

10. DEFERRED INCOME Opening

balance

963,381

1,284,231

Additions

-

- less: Amortization for the year

(319,600)

(320,850)

Ending balance

643,781

963,381

Deferred income represents telecom equipment donated by the European Union in March 2003. These assets have estimated useful life of ten years and are depreciated using the straight line method. Deferred income is amortized on a basis consistent with the useful life of the assets.

11. PROPERTY, PLANT AND EQUIPMENT

Runway,

taxiway Plant & Motor

Furniture

Land Buildings &apron equipment vehicles Fences Intangible & Fittings

TOTAL

COST $ $ $ $ $ $

$

$

30 June 2011 13,117,228 26,480,249 39,950,998 23,306,148 1,140,840 1,066,063 124,838 573,410

105,759,774 Revaluation

reserve 7,372,697

7,372,697

Additions - 566,170 67,250 972,992 183,227.83 - - 174,367 - 1,964,007

Disposals - - - (615,706) - - - -

(615,706)

At 30 June 2012 20,489,925 27,046,419 40,018,248 23,663,434 1,324,068 1,066,063 124,838 747,777

114,480,772

Accumulated depreciation

and impairment

30 June 2011 - 10,592,918 30,961,042 17,047,481 555,412 895,858 2,689 562,256

60,617,656 Annual

depreciation - 639,464 913,105 995,994 176,692 31,774 24,968 9,735

2,791,732

Disposals

- - (262,842) - - - -

(262,842)

At 30 June 2012 - 11,232,382 31,874,147 17,780,633 732,104 927,632 27,657 571,991

63,146,546

Carrying amount

30 June 2011 20,489,925 15,887,331 8,989,956 6,258,667 585,428 170,205 122,149 11,154

52,514,815

At 30 June 2012 20,489,925 15,814,037 8,144,101 5,882,801 591,964 138,431 97,181 175,786

51,334,224

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ASSET REVALUATION RESERVE

The Airport Authority land revaluation was carried out by the Department of Lands and Survey, a licensed public valuer in December 2003. The revaluation was intended to put a value on the Authority's 50 acres shares with Aggie Grey's Beach Resort Samoa Limited.

Balance at year end

$ 7,372,697

$ 7,372,697

12. PAYABLE TO THE MINISTRY OF FINANCE

Balance at year end

$ 743,235

$ 743,235

The amounts represent undisbursed funds from the World Bank for expenditures paid by the Ministry of Finance (formerly Treasury Department) towards the infrastructure Asset Management Project. (Airport Authority)

SAMOA AIRPORT AUTHORITY

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2012

$

$

13. OPERATING INCOME Departure tax

4,855,172

4,794,947

Landing fees

2,648,967

2,788,416

Other operating income

1,609,328 # 1,555,374 14. INVESTMENTS WITH AGGIE GREY'S BEACH RESORT SAMOA LIMITED

AND OCEANIA AVIATION SAMOA LIMITED

In 2003, the Authority acquired 1.5million shares from the newly established Aggie Grey's Beach Resort Samoa Limited at a par value of $1.00 per share. The additional shares were acquired in December 2006 in exchange for 7 acres of land , to the new value of $2 Million tala.

In 2010, the Authority acquired 76,500 ordinary shares from its newly joint venture with Oceania Aviation Samoa

Limited at a par value of $1 AUD per value. The shares are valued at Two Hundred & Four thousand tala ($204,000) .

15. RELATED PARTY TRANSACTIONS Compensation of key management personnel: Remuneration of key management staff

602,000 # 602,000

Directors fees and allowances

27,625

99,159

The remuneration of key management personnel are determined by Cabinet and the Board. Key management personnel include the CEO, Assistant CEO, Manager Corporate Services, Internal Audit, Works & Technical, Aerodromes, Air Traffic & Rescue Fire Services.

16. CONTINGENT LIABILITIES The Authority has completed a review of the VAGST assessment issued by the Ministry for Revenue on the

13 September 2010 regarding its VAGST returns from January 1996 to April 2009, imposing a VAGST payable of $507,518.75. This has now been resolved with the Ministry and the Authority is to settle the full amount.

17. CAPITAL COMMITMENTS The directors and management are not aware of any capital commitments at year end (2012: Nil)

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18. SUBSEQUENT EVENTS

The government through cabinet directive has approved the additional capitalisation on the 4th April 2012, as per F.K.(12)14 of the Authority's term loan at 30 June 2011 amounting $30,750,788.09. The capitalisation will increase government contribution from $62,700,296 to $93,451,084.09. In addition , the current ratio will also improve from 0.53:1 to 2.81:1 for the year ending 30 June 2012 and the decrease in external funding will result in the debt to equity ratio change from 41% to 92%. The directors and management are not aware of any other matters or circumstances not otherwise dealt with in the financial statements that have significantly or may significantly affect the operations of the Authority. 19. General

The Authority was established under the Airport Authority Act 1984 and commenced operation in 1986. The Authority's main functions are to establish, improve, maintain, operate and manage aerodromes and service all facilities in connection with the operation of any aerodromes or with the operation of any aircraft engaged in civil aviation.

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SAMOA AIRPORT AUTHORITY

SUPPLEMENTARY INFORMATION NOT REQUIRED

FOR STATUTORY PURPOSES

FOR THE YEAR ENDED 30 JUNE 2013

2012

2011

$

$

INCOME

Departure tax - Faleolo airport

4,855,172

4,794,947

Landing fees

2,648,967

2,788,416

Duty free levies

3,341

41,357

Miscellaneous

114,988

88,885

Parking fees - Aircraft

58,330

82,520

Parking fees - Motor vehicle

205,526

224,230

Oil levies

120,813

140,543

Rental

448,115

357,894

Electricity recovery

198,651

188,745

Fuel & water recovery

80,176

69,749

VIP operations

51,700

39,400

Ground Handling

12,000

12,000

ATS & Security Services - Fagalii 67,338

61,703

Airspace Income

248,348

248,348

Total operating income

9,113,467

9,138,737

Interest on term deposits

51,515

58,112

Defer income amortisation

319,600

320,850

Dividend income

-

-

Gain on disposal of fixed assets

-

-

Total income

9,484,581

9,517,699

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SAMOA AIRPORT AUTHORITY

SUPPLEMENTARY INFORMATION NOT REQUIRED

FOR STATUTORY PURPOSES

FOR THE YEAR ENDED 30 JUNE 2013

2013

2012

$

$

EXPENSES

Advertising

6,834

8,931

Bank charges

3,754

2,785

Board expenses

27,273

60,623

Civil aviation charges

1,537

36,947

Donation

28,858

66,137

Electricity

1,031,214

1,099,099

Fuel

387,955

294,640

General expenses

29,712

28,629

Insurance

386,312

331,386

Registration & Licensing

19,110

19,894.00

Loose tools

3,676

445

Maintenance of aerodromes

105,125

78,378

Ministerial Expenses

7,770

14,263.00

Office expenses

16,162

14,204

Over-provision depreciation expense

-

Printing and stationery

91,278

60,476

Professional fees

167,248

86,846

Repairs and maintenance - buildings

79,149

42,363

Repairs and maintenance - equipment

53,611

55,970

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Repairs and maintenance - Furniture & Fittings 87

43

Repairs and maintenance - motor vehicle

41,652

83,694

Safety gear

13,008

8,346

Salaries and wages

4,295,362

4,428,064

Supplies

159,506

139,367

Telephone, faxes and postage

88,412

85,400

Training

9,196

36,652

Travel

67,253

190,524

Uniforms

38,754

500.00

Vehicle running expenses

24,720

28,050

Water rates

104,124

11,457

Waste disposal

10,800

3,600

Total operating expenses

7,299,449

7,317,713

Audit fee

19,705

19,705

Bad and doubtful debts

69,627

(12,679)

Departure tax commission

39,411

40,361

Depreciation

2,791,733

2,770,862

Directors fees

23,500

27,625

Interest on loan

231,116

1,321,843

Loss on Sale of Fixed Assets

352,864

64,546

10,827,406

- 11,485,430

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