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    ANNUAL ACCOUNTS 2000.doc ANNUAL ACCOUNTS 2000.doc Document Transcript

    • Reserve Bank of Vanuatu FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000
    • RESERVE BANK OF VANUATU Page - 2 - RESERVE BANK OF VANUATU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000 TABLE OF CONTENTS Page 1. Independent Auditor’s Report to the Government………………………… 3 2. Statement of Profit and Loss………………………………………………. 4 3. Statement of Transfers to Government of Vanuatu………………………... 4 4. Statement of Movements in Equity…………………………………………5 5. Balance Sheet……………………………………………………………….6-7 6. Statement of Cash Flows…………………………………………………... 8 7. Notes to and forming part of the financial statements……………………... 9-17
    • RESERVE BANK OF VANUATU Page - 3 -
    • RESERVE BANK OF VANUATU Page - 4 - STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) Note 2000 1999 Operating revenue Interest income 347,965 355,572 Other income 7,705 21,541 Profit on sale of Fixed Assets - - ---------- ---------- Total revenue 355,670 377,113 ====== ====== Operating expenses Personnel expenses Salaries and wages 69,475 67,408 Superannuation Contribution (VNPF) 2,605 1,900 Increase in liability for severance allowance 76 2,728 Other 18,851 17,402 --------- --------- 91,007 89,438 Other operating expenses Depreciation and amortisation 12,560 12,565 Production of Notes & Coins - 48,128 Interest paid 17,530 44,684 Loss of sale of bonds 43,435 - Other expenses 123,996 60,124 ---------- ---------- 154,086 165,501 Total expenses 245,093 254,939 ---------- ---------- Operating profit 110,577 122,174 ====== ====== Appropriations 2 Transfer to General Reserve 11,058 12,218 Due to Government of Vanuatu 99,519 109,956 ---------- --------- Unappropriated profits as at 31 December NIL NIL ====== ===== This Statement of profit and loss is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 8 to 16. STATEMENT OF TRANSFERS TO GOVERNMENT OF VANUATU (Expressed in 000's Vatu) Note 2000 1999 Appropriation of profits 99,519 109,956 Transfer from Revaluation Reserve 3 8,111 12,294 ---------- ---------- Total transfer to Government of Vanuatu 107,630 122,250 ====== ====== The Statement of transfers to Government of Vanuatu is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 8 to 16.
    • RESERVE BANK OF VANUATU Page - 5 - STATEMENT OF MOVEMENTS IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) Issued & Paid up General Revaluation Capital Reserve Reserve Total 2000 Balance at beginning of the financial year 100,000 597,960 49,177 747,137 Current year profit - 11,058 - 11,058 Net revaluation gain - - ( 8,622 ) ( 8,622 ) 1/5 of the total revaluation gain transferred to Government - - ( 8,111 ) ( 8,111 ) ---------- ---------- ---------- ---------- Balance at the end of the financial year 100,000 609,018 32,444 741,462 ====== ====== ====== ====== 1999 Balance at the beginning of the financial year 100,000 585,742 61,214 746,956 Current year profit - 12,218 - 12,218 Net revaluation gain - - 257 257 1/5 of the total revaluation gain transferred to Government - - ( 12,294 ) ( 12,294 ) ---------- ---------- ---------- ---------- Balance at the end of the financial year 100,000 597,960 49,177 747,137 ====== ====== ====== ====== The statement of movements in equity is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 8 to 16 .
    • RESERVE BANK OF VANUATU Page - 6 - BALANCE SHEET AS AT 31 DECEMBER 2000 (Expressed in 000's Vatu) Note 2000 1999 Capital and Reserves Issued Capital 12 100,000 100,000 General Reserve 2 609,018 597,960 Revaluation Reserve 3 32,444 49,177 ---------- ---------- 741,462 747,137 ---------- ---------- Liabilities Currency in Circulation Notes 1,739,155 1,886,646 Coins 371,384 358,136 ------------ ------------ 2,110,539 2,244,782 ------------ ------------ Other Liabilities Due to Commercial Banks 2,271,269 1,863,930 Due to Government of Vanuatu 1,334,813 1,315,081 Due to International Institutions & Agencies 228,363 218,777 Due to Domestic Institutions 163,722 355,246 Employee Provisions 24,604 24,528 Accrued Expenses 6,095 4,441 ------------ ------------ 4,028,866 3,782,003 ------------ ------------ Reserve Bank of Vanuatu Notes 99,135 297,478 ------------ ------------ Total Capital, Reserves and Liabilities 6,980,002 7,071,400 ======= ======= The balance sheet is to be read in conjunction with the notes to and forming part of the financial Statements set out on pages 8 to 16. _______________________ __________________ Andrew Kausiama Meto Nganga Chairman, Board of Directors and Governor Director
    • RESERVE BANK OF VANUATU Page - 7 - BALANCE SHEET AS AT 31 DECEMBER 2000 (Expressed in 000's Vatu) Note 2000 1999 External Assets 4 International Monetary Fund (IMF) 5 Reserve Tranche Position: Subscriptions to IMF 447,971 585,449 Less: Subscriptions held on behalf Of Government of Vanuatu ( 447,971 ) ( 585,449 ) ----------- ----------- - - Special Drawing Rights Department 115,420 141,694 Treasury Notes and Bonds 7 1,993,830 2,474,043 Cash and Cash Equivalents 13(A) 3,025,609 2,309,134 ----------- ----------- 5,134,859 4,924,871 ------------ ------------ Property, Plant and Equipment 11 45,430 55,352 ------------ ------------ Other Assets Interest Receivable 112,236 133,377 Vanuatu Government Bonds 9 849,466 1,031,466 Other Receivables 10 472,472 556,376 Government Securities 8 365,539 369,958 ----------- ----------- 1,799,713 2,091,177 ----------- ----------- Total Assets 6,980,002 7,071,400 ======= ======= The Balance sheet is to be read in conjunction with the notes to and forming part of the financial Statements set out on pages 8 to 16. ___________________ ________________________ Andrew Kausiama Meto Nganga Chairman, Board of Directors and Governor Director
    • RESERVE BANK OF VANUATU Page - 8 - STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) Note 2000 1999 Cash flows from operating activities Interest received 369,105 345,927 Interest paid ( 17,530 ) ( 44,684 ) Other operating receipts 7,705 20,829 Other operating payments ( 218,534 ) ( 200,715 ) ---------- ---------- Net cash provided by operating activities 13(B) 140,746 121,357 ---------- ---------- Cash flows from investing activities Net (increase)/decrease in: Subscription to IMF 137,478 ( 163,867 ) Special Drawing Rights Department 26,274 ( 52,348 ) Treasury Notes and Bonds 480,213 ( 244,396 ) Government Securities 4,419 ( 180,597 ) Other Receivables 265,889 ( 338,560 ) Property, Plant and Equipment Purchases 2,638 ( 29,600 ) Proceeds on sale - ( 71 ) ------------ ------------ Net cash (used in) provided by investing activities 916,911 ( 1,009,439 ) ------------ ----------- Cash flows from financing activities Net increase/(decrease) in: Subscriptions held on behalf of the Government ( 137,478 ) 163,867 Currency in circulation ( 134,242 ) 9,370 Due to commercial banks 407,339 616,051 Due to Government of Vanuatu 19,732 65,711 Due to International Institutions & Agencies 9,586 196,256 Due to Domestic Institutions ( 191,524 ) 188,695 Reserve Bank of Vanuatu Notes ( 198,343 ) ( 935,935 ) Transfers to Government 2,3 ( 107,630 ) ( 122,250 ) ----------- ----------- Net cash provided by financing activities ( 332,560 ) 181,765 ----------- ----------- Net (decrease) increase in cash 725,097 ( 706,317 ) Cash at the beginning of the financial year 13(A) 2,309,134 3,015,194 Effects of exchange rate changes on foreign currency balances 1(C), ( 8,622 ) 257 3 ------------ ------------ Cash at the end of the financial year 13(A) 3,025,609 2,309,134 ======= ======= The statement of cash flows is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 8 to 16.
    • RESERVE BANK OF VANUATU Page - 9 - NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) 1. Statement of significant Accounting Policies The significant accounting policies adopted in the preparation of the financial statements are set out below: (A) Basis Of Preparation The financial statements of the Bank have been prepared in accordance with the accounting standards issued by the International Accounting Standard Committee (IASC) and the requirements of the Reserve Bank of Vanuatu Act [CAP 125]. They are prepared under the historical cost system and do not take into account changing money values or, except where stated, current valuations of non-current assets. The accounting policies have been consistently applied and, except where there is a change in accounting policy, are consistent with those of the previous year. The financial statements are presented in Vanuatu currency (Vatu) rounded to the nearest thousands. (B) Revenue Recognition Operating Revenue Operating revenue includes interest income, profit on foreign exchange dealing with commercial banks and sundry income. (C) Foreign Currencies Transactions in foreign currencies are converted to Vatu at the rates of exchange prevailing on transaction dates. Year-end assets and liabilities denominated in foreign currencies are converted at the rates of exchange ruling at the year-end. All exchange gains and losses, both realised and unrealised, arising from the conversion of foreign currencies are taken to the Revaluation Reserve Account (Note 3) in accordance with the provisions of Section 25 of the Reserve Bank of Vanuatu Act [CAP 125] and are not included in the computation of the annual profits or losses of the Bank. Losses arising from the conversion of foreign currencies are set off against any credit balance in the Revaluation Reserve Account. If the balance of this account is insufficient to cover such losses they are set off against any net profit remaining after the transfer to the General Reserve Account has been made in terms of Section 7 of the Reserve Bank of Vanuatu Act [CAP 125]. If these transfers are not adequate to cover such losses, the Government is required to transfer to the ownership of the Bank non-negotiable non-interest bearing securities to the extent of the deficiency. Any credit balance in the Revaluation Reserve Account at the end of each year is applied first to the redemption of any non-negotiable non-interest bearing notes previously transferred to the Bank by the Government to cover losses; thereafter one-fifth of any remaining balance is payable to the Government.
    • RESERVE BANK OF VANUATU Page - 10 - NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) (D) Coins Sold As Numismatic Items The Bank sells, or receives royalties on, coins which are specially minted or packaged as numismatic items. These coins have not been accounted for as currency in circulation as they were not issued for monetary purposes. (E) Non-Current Assets The carrying amounts of all non-current assets are reviewed to determine whether they are in excess of their recoverable amount at balance date. If the carrying amount of a non-current asset exceeds the recoverable amount, the asset is written down to the lower amount. In assessing recoverable amounts the relevant cash flows have not been discounted to their present value. (F) Property, Plant And Equipment Acquisitions Items of property, plant and equipment are recorded at cost and depreciated as outlined below. All items of property, plant and equipment are carried at the lower of cost less accumulated depreciation, and any recoverable amount. Disposal of Assets The gain or loss on disposal of assets is calculated as the difference between the carrying amount of the asset at the time of disposal and the proceeds on disposal, and is included in the result in the year of disposal. Depreciation Depreciation is charged on a straight line basis over the estimated useful lives of the assets. The rates of depreciation used are based on the following estimated useful lives. • Leasehold land - Term of the lease • Reserve Bank Building - 10 years • Plant and equipment - 3-10 years Assets are depreciated from the date of acquisition. Expenditure on repairs or maintenance of property, plant and equipment incurred to restore or maintain future economic benefits expected from the assets is recognised as an expense when incurred. (G) Notes And Coins All purchases of notes and coins are written off in the year of payment.
    • RESERVE BANK OF VANUATU Page - 11 - NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) (H) Income Tax The Bank is exempt from all taxes in accordance with Section 42 of the Reserve Bank of Vanuatu Act [CAP 125]. (I) Employee Entitlements The provision for employee entitlements comprises severance allowance and annual leave and represents the present liability resulting from employees' services to the balance sheet date. The provision has been calculated at nominal amounts based on current wage and salary rates. Vanuatu National Provident Fund Employers contributions to the above fund are charged against income as incurred. (J) Cash And Cash Equivalents For the purpose of the statement of cash flows, cash and cash equivalents includes coins, notes, cash at bank, money at call and cash held on short term deposits. (K) Treasury Notes and Bonds Treasury Notes and Bonds are acquired for trading purposes and are stated at cost with any resultant gain or loss recognised in the statement of profit and loss on sale. They are classified as current assets. These securities are valued at their historic purchase price on acquisition. Interest income is taken up to profit on an accrual basis and received on coupon date. (L) Comparatives Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures.
    • RESERVE BANK OF VANUATU Page - 12 - NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000'sVatu) 2. General Reserve and Distribution of Profits The requirements of Section 7 of the Reserve Bank of Vanuatu Act [CAP 125] are: (a) that half the net profit be transferred to the General Reserve until the balance thereof is equal to the authorised capital. (b) that once the balance of the General Reserve is equal to the authorised capital, 10% of the net profit be transferred to the General Reserve. (c) that after allocation of the net profit as above, the balance be applied towards the redemption on behalf of the Government of any securities held by the Reserve Bank which have been issued in accordance with Section 25 (2) in addition to those issued pursuant to Section 5 (4). (d) that the balance of the net profit for the financial year remaining after all deductions as above be paid to the Government. 3. Revaluation Reserve In accordance with Section 25 of the Reserve Bank Act [CAP 125], any gains arising out of changes in the value of the Reserve Bank's foreign assets and liabilities are to be transferred to the Revaluation Reserve. At the balance sheet date any credit balance in the Account is to be applied first towards the redemption of Vanuatu Government Securities issued to the Reserve Bank in respect of previous years' losses. If the remaining balance is greater than VT5.0 million, 20% of that balance is to be paid to the Vanuatu Government, to be used for such purposes as the Government, after consultation with the Reserve Bank, may decide. However, if the remaining balance does not exceed VT5.0 million, it is to be paid in full to the Government. Accordingly, the amount due to the Government of Vanuatu at 31 December 2000 of VT1,334,813 includes VT8,111 transferred from the Revaluation Reserve. 4. External Assets External assets are defined by the Act as including any internationally recognised reserve asset. In these financial statements, external assets also include fully convertible foreign currency balances equivalent to VT2,221 (1999 - VT118) held with local banks in Vanuatu. 5. International Monetary Fund (a) Vanuatu is a member of the International Monetary Fund (IMF) and the Reserve Bank has been designated as the Government of Vanuatu's fiscal agency (through which the Government deals with the IMF) and as the depository for the IMF's holding in Vatu. (b) Vanutu's subscription to the IMF has been met by: (i) payment to the IMF out of the Reserve Bank's external assets which have been reimbursed by the Government of Vanuatu by issue of non-interest bearing securities; (ii) the funding of accounts in favour of the IMF in the books of the Reserve Bank by the Government of Vanuatu.
    • RESERVE BANK OF VANUATU Page - 13 - NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) 6. Auditor's remuneration 2000 1999 Amounts received or due and receivable by the Auditors of the Bank for: - Auditing the financial statements 1,492 1,492 ===== ===== 7. Treasury Notes and Bonds Investment securities 1,993,830 2,474,043 ======= ======= 8. Government Non-Negotiable Securities Issued to the Bank Balance at beginning of the Financial year 369,958 189,361 Encashment of Notes ( 4,419 ) - Issue of Notes - 180,597 ---------- ---------- 365,539 369,958 ====== ====== 9. Vanuatu Government Bonds Maturities of securities are summarised as follows: Not later than 1 year 201,981 240,000 Between 1 and 2 years 44,985 143,981 Between 2 and 5 years 40,000 84,985 Later than 5 years 562,500 562,500 ---------- ------------ 849,466 1,031,466 ====== ======= 10. Other Receivables Current: Advance to statutory bodies/banks 285,184 347,668 Loans to staff 29,460 25,999 Sundry Debtors 44,710 61,270 ---------- ---------- 359,354 434,937 Non-Current: Loans to staff 113,118 121,439 ---------- ---------- 472,472 556,376 ====== ======
    • RESERVE BANK OF VANUATU Page - 14 - NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) 11. Property, plant and equipment 2000 1999 Building and Land Building (At Cost) 161,088 161,088 Land 17,311 17,311 Residential Properties 10,230 10,230 --------- ---------- 188,629 188,629 Accumulated Depreciation ( 176,207 ) ( 174,596 ) --------- ---------- 12,422 14,033 --------- ---------- Plant and equipment At Cost 112,525 109,913 Accumulated Depreciation ( 79,517 ) ( 68,594 ) ---------- -------- 33,008 41,319 ---------- -------- Total property, plant and equipment 45,430 55,352 ====== ===== Movement in property, plant and equipment Opening written down value: 55,352 38,317 Additions 2,638 29,600 Disposals - - Depreciation ( 12,560 ) ( 12,565 ) -------- -------- Closing written down value 45,430 55,352 ===== ===== 12. Share Capital Authorised Capital of 400,000,000 ordinary Shares 400,000 400,000 ====== ====== Issued and Paid-up Capital of 100,000,000 ordinary shares 100,000 100,000 ====== ======
    • RESERVE BANK OF VANUATU Page - 15 - NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) 13. Notes to the Statement of Cash Flows (A) Reconciliation Of Cash For the purpose of the Statement of Cash Flows, cash and cash equivalents includes cash on hand and at bank and short term deposits. Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the balance sheet as follows: 2000 1999 Cash 1,754 1,433 Current accounts 981,299 923,409 Short term deposits 2,042,556 1,384,292 ------------ ------------ 3,025,609 2,309,134 ======= ======= (B) Reconciliation of Operating Profit to Net Cash provided by Operating Activities Operating profit 110,577 122,174 Non cash items Depreciation 12,560 12,565 Severance Pay 76 2,728 (Profit) loss on sale of premises and equipment - 71 Net (increase)/decrease in: Interest receivable 21,140 ( 9,646 ) Other receivable 15 ( 453 ) Net increase/(decrease) in: Accrued expenses ( 3,622 ) ( 6,082 ) ---------- ---------- Net cash provided by operating activities 140,746 121,357 ====== ====== 14. Related Parties Ultimate Parent Entity The Bank's ultimate parent entity is the Government of the Republic of Vanuatu. Director's remuneration The directors were paid a sitting allowance for services rendered to the value of Vt 75 (1999: Vt 52)
    • RESERVE BANK OF VANUATU Page - 16 - NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) 15. Employees The number of full time permanent employees as at 31 December was 52 (1999: 52). 16. Contingent Liabilities The directors are aware of non contingent liabilities at balance sheet date. 17. Financial instruments Exposure to credit, interest rate and currency risk arises in the normal course of the bank's operations. The material financial instruments to which the bank has exposure includes: (i) external assets (ii) other liabilities. Credit risk The bank does not require collateral in respect of financial assets except in respect of loans to staff. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit risk on financial assets is minimised by dealing with recognised monetary institutions. At balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. Interest rate risk The bank's exposure to interest rates and the effective interest rates of financial assets and liabilities at the balance sheet date are as follows: Financial Assets: Cash and current accounts - floating interest rates Short term deposits - fixed interest rates maturing in 90 days or less Treasury Notes and Bonds - fixed interest rates maturing in 9 years or less Vanuatu Government Bonds - fixed interest rates maturing as detailed in note 9 Staff loans - fixed interest rates maturing in 20 years or less Statutory bodies/banks - fixed interest rates maturing in 30 days or less. Financial Liabilities: Government of Vanuatu - fixed interest rates payable in 30 days or less - Account No.1 - Redemption of bonds. Domestic Institutions - fixed interest rates payable in 30 days or less. All other financial assets or financial liabilities are non-interest bearing.
    • RESERVE BANK OF VANUATU Page - 17 - NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000 (Expressed in 000's Vatu) Foreign currency risk The bank incurs foreign currency risk on holdings of financial assets (principally external assets) that are denominated in a currency other than Vatu. The currencies giving rise to this risk are primarily Australian dollars, New Zealand dollars, British pounds, French francs, Euro and United States dollars. The bank does not hedge its exposure to exchange fluctuations in these currencies. Fair values of financial assets and liabilities With the exception of Treasury Notes and Bonds, the aggregate net fair values of financial assets and financial liabilities at the balance date approximate the carrying values. The fair value of Treasury Notes and Bonds is Vt 1,996,285 compared with a carrying amount of Vt 1,993,830. 18. Post Balance Sheet Events No events have occurred since the balance sheet date which would require either disclosure or adjustments in the accounts.