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CVRF Announces 2012 Audited Revenue of $115.4 Million $28 Million Provided to the CVRF Region

Revenue Per Resident Still Far Below Other CDQ Groups

ANCHORAGE, AK – The Coastal Villages Region Fund (CVRF) Board of Directors today received and approved its 2012 audited financial statements as presented by KPMG LLP. CVRF’s 2012 revenue of $115.4 million was $9 million higher than 2011, with the substantial majority ($101.6 million) again coming from the harvest, processing and sale of Pollock, crab and cod from the Bering Sea.

CVRF reported $29.5 million in net income from the Bering Sea in 2012 and spent $27.9 million of that amount for the direct benefit of its 20 member villages and 9,304 residents in the form of jobs, commercial salmon and halibut fishing opportunities, scholarships, internships, discretionary funding to village governing bodies and other services and programs. The $27.9 million spent by CVRF in 2012 for these programs was $9.2 million higher than the $18.7 million spent by CVRF for its villages and residents in 2011.

The financial audit was considered a “clean” audit with no material weaknesses identified.

CVRF had an incredible year in 2012” said CVRF President Paul Tulik of Nightmute, “but Coastal must seek additional growth in the Bering Sea because the economic needs of our region are great. Even with the incredible success Coastal has had in recent years, we fall short of the income per resident of other CDQ groups who receive a disproportionately large share of CDQ fish. We will not realize the full potential of the CDQ Program for our people until the CDQ imbalances are corrected.”

We serve the most economically challenged people in the CDQ Program,” said CVRF Board Member Harry Tulik of Toksook Bay, “and we are not even close to catching up with what the other CDQ groups have as a result of their excessive CDQ allocations.”

The 2012 audited financial statements are not available from all six CDQ groups, but audited 2011 financial statements show the following disparities in CDQ revenue and “program” expenses per resident:

 

CDQ GROUP

RESIDENTS

2011 REVENUE PER RESIDENT

2011 “PROGRAM” SPENDING PER RESIDENT

2012 REVENUE PER RESIDENT

2012 “PROGRAM” SPENDING PER RESIDENT

APICDA

387

$81,017

$51,616

TBD

TBD

CBSFA

425

$108,031

$80,381

TBD

TBD

BBEDC

5,411

$6,867

$2,128

TBD

TBD

CVRF

9,304

$11,605

$2,010

$12,403

$2,999

NSEDC

9,070

$4,968

$1,787

TBD

TBD

YDFDA

3,341

$13,365

$9,058

TBD

TBD

 

I recently secured a new full-time position with CVRF in Mekoryuk where there are few jobs of any kind,” said Mekoryuk resident Beatrice Olrun-Kiokun, “It hurts me to think about how much more CVRF could be doing if the CDQ allocations were fair. As a young person and a voter, the historical decisions on how the allocations came to this point are not a priority for me, but rather, it’s about fixing the CDQ allocations so that the future generation, my children, will have their fair share.”

CVRF represents one-third of the CDQ population” said CVRF Vice President James Akerelrea of Scammon Bay, “and they seem to be telling us that we are worth less than some of the other Alaskans in the CDQ Program. It is time for a change.”

In the 15 years that I have been with Coastal, we have grown Coastal’s balance sheet from almost nothing to a total of $315 million by the end of 2012,” said CVRF Executive Director Morgen Crow. “Our 2012 Bering Sea revenues were a record, and the nearly $28 million we provided for our villages was a record other than during the period when we were building the regional seafood plant in Platinum. We will continue to succeed for the people of our region no matter what happens, but it is an insult that all of this success does not even catch us up yet to what the other CDQ groups get from the imbalanced CDQ allocations.”

The people in our region are upset, and rightly so,” said Eric Olson, Sr., CVRF Board Member from Hooper Bay, “Our leaders will fail us if they allow this to be swept under the rug.”

CVRF represents 20 of the 65 CDQ villages and 9,304 of the approximately 28,000 residents who reside in CDQ villages. According to the most recent U.S. Census, CVRF’s member villages have among the highest rates of unemployment and poverty, among the lowest per capita income of the 65 CDQ villages, and, according to the Denali Commission, the most “distressed communities.” When the CDQ Program was being developed in the early 1990s, the 20 member villages of CVRF chose to form a single CDQ group, while other villages chose to form multiple smaller, separate CDQ groups. The villages that formed smaller CDQ groups continue to receive more fish per CDQ resident than the two largest groups, which include CVRF and Norton Sound Economic Development Corporation (NSEDC). CVRF represents more people and villages than the smallest three of the six CDQ groups combined.

We had an outstanding year in 2012,” said CVRF Board Member and Secretary John O. Mark from Quinhagak, “but we continue to strive to do more – ‘cali pikaningnaqluta’ as we say in Yupik.”

The very backbone of the CDQ program is the people - the residents of the 65 CDQ communities within 50 miles of the Bering Sea where the CDQ fisheries take place,” said one of the program’s founders, Henry Mitchell, who served on the North Pacific Fishery Management Council when the program was created in 1992. “The disparate delivery of the CDQ fish to CDQ residents defies common sense, conflicts with the program’s purpose, and is a fundamental threat to its long-term survival. It needs to be fixed.”

Through the CDQ Program, the six CDQ groups are allocated a portion of the federal Bering Sea fisheries to use “to participate and invest in fisheries in the Bering Sea...to support economic development in western Alaska...to alleviate poverty and provide social and economic benefits...and...to achieve sustainable and diversified local economics in western Alaska.” (16 U.S.C. 1855(i)(1)(A))

For more information, please contact CVRF at 888-795-5151 or visit our website at www.coastalvillages.org.

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