VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
CONSOLIDATED FINANCIAL STATEMENTS 
FOR THE YEAR ENDED SEPTEMBER 30,2016 
Together With Independent Auditor's Report 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
CONSOLIDATED FINANCIAL STATEMENTS 
SEPTEMBER 30, 2016 
TABLE OF CONTENTS 
Independent Auditor's Report .................................................................................................................... 1-3 
Management's Discussion and Analysis ................................................................................................. .4-10 
Basic Consolidated Financial Statements 
Consolidated Statement of Net Position ................................................................................................. 11 
Consolidated Statement of Revenues, Expenses, and Changes in Net Position .................................... .12 
Consolidated Statement of Cash Flows .................................................................................................. 13 
Consolidated Notes to the Financial Statements ............................................................................... 14-26 
Required Supplementary Information 
Consolidated Schedule of the Proportionate Share of Net Pension Liability ........................................ 27 
Consolidated Schedule of the Contributions .......................................................................................... 28 
Other Supplementary Information 
Consolidated Combining Schedule of Net Position ............................................................................... 29 
Consolidated Combining Schedule of Revenues, Expenses, and Changes in Net Position .................. 30 
BERT SMITH & CO. 
CERTIFIED PUBLIC ACCOUNTANTS 
& MANACEhlENT CONSULTANTC 
INDEPENDENT AUDITOR'S REPORT 
1090 Vermont Ave., NW 
Suite 920 
Washington, DC 20005 Board of Directors 
PO. BOX 2478 
Virgin Islands Economic Development Authority 
Kingshill, VI 00851 
St. Thomas, U.S. Virgin Islands 
1 1 1 South Calvert St. 
Suite 2700 
Report on the Financial Statements 
Baltimore, MD 21 202 
We have audited the consolidated accompanying statement of net position of the Virgin 
Islands Economic Development Authority (the "Authority") and its wholly owned 
subsidiary Industrial Park Development Corporation, a component unit of the 
Government of the U.S. Virgin Islands, as of and for the year ended September 30, 
201 6 and the related statement of revenues, expenses, and changes in net position and 
cash flows for the year then ended and the related notes to the consolidated financial 
statements. 
Management's Responsibility 
The Authority's management is responsible for the preparation and fair presentation 
of these financial statements in accordance with accounting principles generally 
accepted in the United States of America; this includes the design, implementation, 
and maintenance of internal control relevant to the preparation and fair presentation 
of financial statements that are free from material misstatement, whether due to fraud 
or error. 
Auditor's Responsibility 
Our responsibility is to express an opinion on these consolidated financial statements 
based on our audit. We conducted our audits in accordance with auditing standards 
generally accepted in the United States of America and the standards applicable to 
financial audits contained in Government Auditing Standards, issued by the 
Comptroller General of the United States. Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether the consolidated 
financial statements are free from material misstatement. 
An audit involves performing procedures to obtain audit evidence about the amounts 
and disclosures in the consolidated financial statements. The procedures selected 
depends on the auditor's judgment, including, the assessment of the risks of material 
misstatement of the consolidated financial statements, whether due to fraud or error. 
In making those risk assessments; the auditor considers internal control relevant to 
the entity's preparation and fair presentation of the consolidated financial statements 
in order to design audit procedures that are appropriate in the circumstances, but not 
for the purpose of expressing an opinion of the effectiveness of the entity's internal 
control. Accordingly, we express no such opinion. An audit also includes evaluating 
the appropriateness of accounting policies used and the reasonableness of significant 
accounting estimates made by management, as well as evaluating the overall 
presentation of the consolidated financial statements. 
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 
our audit opinion. 
Opinion 
In our opinion, based our audit the consolidated financial statements referred to above presents fairly, in 
all material respects, the financial position of the Authority as of September 30, 201 6, and the respective 
changes in net position and cash flows for the year then ended in accordance with accounting principles 
generally accepted in the United States of America. 
Emphasis of Matter 
As discussed in Note 1 to the consolidated financial statements, the consolidated financial statements 
present only the Authority's financial position and the changes in financial position and cash flows and do 
not purport to, and do not, present fairly the financial position of the Government of the U.S. Virgin 
Islands as of September 30, 2016 and changes in the financial position of the Government of the U.S. 
Virgin Islands for the years then ended, in conformity with accounting principles generally accepted in 
the United States of America. 
Report on Comparative Information 
We have previously audited the Authority's September 30, 2015 consolidated financial statements, and 
our report dated, March 28, 2016, expressed an unmodified opinion thereon. In our opinion, the 
comparative information presented herein as of and for the year ended September 30, 2015, is consistent, 
in all material respects, with the audited consolidated financial statements from which it has been derived. 
Other Matters 
Required Supplementary Information 
Accounting principles generally accepted in the United States of America require that the management's 
discussion and analysis information on pages 4 through 10 and the Schedule of Proportionate Share of the 
Net Pension Liability and the Schedule of Contributions on pages 27 and 28 be presented to supplement 
the basic financial statements. Such information, although not a part of the basic consolidated financial 
statements, is required by the Government Accounting Standards Board, who considers it to be an 
essential part of the financial reporting for placing the basic consolidated financial statement in an 
appropriate operational, economic or historic context. 
We have applied certain limited procedures to the required supplementary information in accordance with 
auditing standards generally accepted in the United States of America, which consisted of inquiries of 
management about the methods of preparing the information and comparing the information for 
consistency with management's responses to our inquiries, the basic consolidated financial statements, 
and other knowledge we obtained during our audit of the basic financial statements. We do not express an 
opinion or provide any assurance on the information because the limited procedures do not provide us 
with sufficient evidence to express an opinion or provide any assurance. 
Other Information 
Our audit was conducted for the purpose of forming an opinion on the Authority's basic consolidated 
financial statements. The other supplementary information listed in the accompanying table of contents 
on pages 29 and 30 is presented for purposes of additional analysis and is not a required part of the 
basic financial statements. Such information is the responsibility of management and was derived 
from and relates directly to the underlying accounting and other records used to prepare the basic 
consolidated financial statements. 
The other supplementary information is the responsibility of management and was derived from and 
relates directly to the underlying accounting and other records to prepare the basic consolidated financial 
statements, such information has been subjected to the auditing procedures applied in the audit of the 
basic consolidated financial statements and certain additional procedures, including comparing and 
reconciling such information directly to the underlying accounting and other records used to prepare the 
basic financial statements or to the consolidated financial statements themselves, and other additional 
procedures in accordance with auditing standards generally accepted in the United States of America. In 
our opinion, the other supplementary information is fairly stated in all material respects in relation to the 
basic consolidated financial statements as a whole. 
Other Reporting Required by Government Auditing Standards 
In accordance with Government Auditing Standards, we have also issued our report dated April 13,201 7 
on our consideration of the Authority's internal control over financial reporting and on our tests of its 
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other 
matters. The purpose of that report is to describe the scope of our testing of internal control over financial 
reporting and compliance and the results of that testing, and not to provide an opinion on internal control 
over financial reporting or on compliance. That report is an integral part of an audit performed in 
accordance with Government Auditing Standards in considering the Authority's internal control over 
financial reporting and compliance. 
St. Croix, U.S. Virgin Islands 
April 13,2017 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
MANAGEMENT'S DISCUSSION AND ANALYSIS 
(UNAUDITED) 
FOR THE YEAR ENDED SEPTEMBER 30.2016 
INTRODUCTION 
The Virgin Islands Economic Development Authority (Authority) is a semi-autonomous governmental 
instrumentality responsible for the development, promotion and enhancement of the economy of the U.S. 
Virgin Islands. 
The Authority is the umbrella organization which assumes, integrates, and unifies the functions of the 
following subsidiary entities: the Economic Development Bank ("EDB"), the Economic Development 
Commission ("EDC"), the Economic Development Park Corporation ("EDPC"), and the Enterprise and 
Commercial Zone Commission ("ECZC"). 
The Authority operates under one Governing Board ("Board") in order to achieve maximum efficiency of 
operation to avoid duplication of services, positions, and responsibilities; to reduce expenses of personnel, 
physical plant and operations; and to develop comprehensive programs for the economic development of 
the U.S. Virgin Islands. The Authority is funded primarily by allotments from the Office of Management 
and Budget via the Department of Finance based on an approved budget authorized by the Legislature of 
the Virgin Islands. 
As management of the Authority, we offer the readers of the Authority's consolidated financial 
statements this narrative overview and analysis of the financial activities of the Authority for the year 
ended September 30, 2016. We encourage readers to consider the information presented here in 
conjunction with the Authority's consolidated financial statements. This overview and analysis is required 
by accounting principles generally accepted in the United States of America ("GAAP"), and the 
Governmental Accounting Standards Board ("GASB") Statement No. 34, Basic Financial Statements- 
and Management's Discussion and Analysis-for 
State and Local Government. 
OVERVIEW OF THE FINANCIAL STATEMENTS 
The consolidated financial statements consist of four parts: management's discussion and analysis, the 
financial statements, notes to the financial statements, and supplementary schedules. The Authority is a 
component unit of the Government of the U.S. Virgin Islands, and follows enterprise fund reporting. The 
consolidated financial statements, therefore, are presented in a manner similar to that of a private 
business, using the economic resources measurement focus and the accrual basis of accounting. 
9 The Consolidated Statement of Net Position: This statement includes all of the Authority's assets, 
deferred outflows of resources and deferred inflows of resources, and liabilities and provides 
information about the nature and amounts of investments in resources (assets) and the obligations to 
creditors (liabilities). The assets and liabilities are presented in order of liquidity. The resulting net 
position presented in these statements is displayed as restricted or unrestricted. 
9 The Consolidated Statement of Revenues, Expenses, and Changes in Net Position: All of the 
current year's revenues and expenses are accounted for in the Statement of Revenues, Expenses, and 
Changes in Net Position. This statement measures the activities of the Authority's operations over the 
past year and can be used to determine whether the Authority has successfilly recovered all of its 
costs through appropriations and the services it provided. 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 
(UNAUDITED) 
FOR THE YEAR ENDED SEPTEMBER 30,2016 
> Statement of Cash Flows: The primary purpose of this statement is to provide information about the 
Authority's net cash used in operating activities, capital and related financing activities, and provide 
information regarding the sources and uses of cash and the changes in the cash balance during the 
reporting period. The notes to the financial statements provide additional information essential to the 
full understanding of the Authority's financial statements. 
9 Notes to the Financial Statements: The notes to the consolidated financial statements provide 
additional information that is essential to the full understanding of the data provided in the financial 
statements. 
> Supplementary Schedules: The Authority's fund consolidated financial statements are presented as 
supplementary schedules. These schedules separate the consolidated financial statements and 
operations for each of the major funds. 
2016 FINANCIAL HIGHLIGHTS 
The Authority's net position (deficit) increased by $1,107,939 or 50% compared to fiscal year 
2015. 
The Authority's total assets and deferred outflow of resources increased by $13,004,819 or 55% 
and total liabilities increased by $13,998,317 or 54% compared to fiscal year 2015. 
The Authority's operating revenues decreased by $175,505 or 9% and operating expenses 
decreased by $1,852,805 or 19% compared to fiscal year 2015. 
Government appropriations increased by $132,480 or 3% compared to fiscal year 2015. 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 
(UNAUDITED) 
FOR THE YEAR ENDED SEPTEMBER 30,201 6 
Condensed Consolidated Statements of Net Position as of September 30,2016 and 2015 
% 
2016 
2015 
Variance 
Variance 
Assets 
Current Assets 
$ 5,961,209 
$ 4,655,257 
$ 1,305,952 
28% 
Noncurrent Assets 
22,529,698 
14,953,767 
7,575,931 
5 1 % 
Capital Assets, net 
1,599,152 
1,874,918 
(275,766) 
-15% 
Total Assets 
30,090,059 
21,483,942 
8,606,117 
40% 
Deferred Oufflows of 
Resources 
6,654,386 
2,255,684 
4,398,702 
195% 
Total Assets and Deferred 
Oufflows of Resources 
$36,744,445 
$23,739,626 
$13,004,819 
55% 
Liabilities 
Current Liabilities 
$13,477,681 
$ 5,102,252 
$8,375,429 
164% 
Noncurrent Liabilities 
26,490,335 
20,867,447 
5,622,888 
27% 
Total Liabilities 
$39,968,016 
$25,969,699 
$13,998,317 
54% 
Deferred Inflows of Resources 
$ 114.441 
$ 114,441 
100% 
Total Liabilities and Deferred 
Inflows of Resources 
$40.082.457 
$25.969.699 
$14.1 12.758 
54% 
Net Position 
Net Investment in Capital 
Assets 
Restricted 
Unrestricted 
Total Net Position 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 
(UNAUDITED) 
FOR THE YEAR ENDED SEPTEMBER 30,2016 
Current Assets 
Current assets increased by $1,305,952 or 28% compared to last fiscal year. This total includes an 
increase in cash and cash equivalents of $501,945 or 14% due to an increase in government 
allotments of $132,750 or 28%; collections improved within the EDC program by $92,949 or 
19%. There was also an increase of $129,000 or 14% in State Small Business Credit (SSBCI) 
funds, which are funds used as collateral to support business loans for bank customers. For the 
Intermediary Relending (IRP) program, $217,769 that was recorded in the non-current section 
last fiscal year was re-classified to the current section of the balance sheet this fiscal year to 
reflect the short-term use of these funds. However, within the Industrial Park Development 
Corporation (IPDC), cash decreased by $108,897 or 57%. These funds were used to repair the 
roofs for two of the buildings. The cash in the Small Business Development Agency (SBDA) 
decreased by $126,477 or 90%. The reduction was due to the reimbursement made to the 
Economic Development Management (EDM) for expenses incurred on behalf of the Incubator 
program. The short-term investments increased by $923,167 or 498% due to a reclassification of 
funds from non-current-restricted cash & cash equivalents to investments in the current section of 
the balance sheet. 
Noncurrent Assets 
Noncurrent assets increased by $7,575,931 or 51% compared to last fiscal year. This was due 
mainly to an increase of $7,499,679 or 133% in restricted cash and cash equivalents. The cash 
increase was due to the final draw down of funds for the SSBCI program. These funds are used 
to provide collateral support for loans made to participating commercial bank customers. 
Similarly, restricted investments increased by $229,811 or 4% due to SSBCI funds being used as 
collateral invested into certificate of deposits. Loan receivable, net of allowance for doubtful 
accounts, decreased by $153,559 or 4% which is attributable to the net effect of increasing the 
number and the individual amounts of loans to businesses, payment received from borrowers and 
write off loans. 
Capital Assets 
Capital assets, net of accumulated depreciation, decreased by $275,766 or 15% compared to last 
fiscal year. Additions to capital assets include new vehicle purchases costing $124,576 to replace 
an aging fleet already fully depreciated, and $29,822 in computer and equipment, $2,400 in 
furniture and fixtures, and $1,868 in building improvements. On the other hand, the overall 
decrease in capital assets was due to this year's total depreciation of $434,432 on these assets. 
Current Liabilities 
Current liabilities increased by $8,375,429 or 164% compared to last fiscal year. Deferred 
revenues increased by $8,750,103 or 209 % of SSBCI funds. These funds are fully committed in 
support of approved bank loans that were not closed by the end of the fiscal year. Additionally, 
accrued expenses went up by $3,436 or 7% due to increases in payroll liabilities, contractual, and 
other obligations. Accounts payable decreased by $493,537 or 64% due to the close out of the 
Incubator program and an overall reduction in vendor obligations. 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 
(UNAUDITED) 
FOR THE YEAR ENDED SEPTEMBER 30,201 6 
Noncurrent Liabilities 
Noncurrent liabilities increased by $5,622,888 or 27% compared to last fiscal year. The net 
pension liability increased by $5,806,388 or 31%. This amount is recorded to recognize the 
Authority's share of the Government Employees' Retirement System's (GERS) total unfunded 
liability obligation for this fiscal year based on GASB 68. However, the amount for compensated 
absences decreased by $144,786 or 48% as the Authority paid out lump-sum amounts owing to 
individuals no longer working for the Authority and the reclassification of $1 14,481 as current 
obligation. The amount in security deposits was decreased by $14,000 or 31% due to tenants7 
security deposit being applied against outstanding rent. The amount owing on the Intermediary 
Relending program (IRP) loan was reduced by $24,714 or 8% as the Authority continues to pay 
down on this debt. 
Net Position 
Net position represents residual interest in the Authority's assets and deferred outflows of 
resources after all liabilities and deferred in flows of resources are deducted for reporting 
purposes and are divided into three major components: 
- Net Investment in Capital Assets 
- Restricted Net Position 
- Unrestricted Net Position 
The Authority's total net position deficit increased by $1,107,939 or 50% compared to last year. 
This increase is mainly attributable to an increase in restricted net position of $8,296,510 or 64% 
due to the SSBCI funds committed as collateral support. Capital assets, net of related 
depreciation, decreased by $275,766 or 15% due to depreciation; and unrestricted net position 
deficit increased by $9,128,683 or 54% due to the net effect of the restricted net position between 
FY 2016 and 2015. 
Condensed Consolidated Statements of Revenues, Expenses, and Changes in Net Position for the 
Years Ended September 30,2016 and 2015 
Yo 
2016 
2015 
Variance 
Variance 
Operating Revenues 
$1,812,415 
$1,987,920 
$ 175,505 
-9% 
Operating Expenses (including 
Depreciation) 
(7,849,297) 
(9,702,102) 
1,852,805 
19% 
Operating Loss 
(6,036,882) 
(7,7 14,182) 
1,677,300 
22% 
Net Nonoperating Revenues 
4,928,943 
4,897,356 
31,587 
1% 
Changes in Net Position 
(1,107,939) 
(2,s 16,826) 
1,708,887 
61% 
Net Position, Beginning of Year 
(2,230,073) 
586,753 
(2,816,826) 
-480% 
Net Position, End of Year 
$(3,338,012) 
$(2,230,073) 
$(1,107,939) 
50% 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 
(UNAUDITED) 
FOR THE YEAR ENDED SEPTEMBER 30.2016 
Revenues 
Operating revenues decreased by $175,505 or 9% compared to last fiscal year. This includes 
$47,596 or 366% increase in revenues from the allocation of bond proceeds. Revenue also 
increased by $58,347 or 84% in the other operating revenue due to payments received from 
borrowers whose loans were previously written off. Additionally, application and processing fees 
went up by $92,949 or 19% due to both an increase in the payment of non-compliance fees and the 
number of EDB loans and EDC beneficiary applications received. However, rental income 
decreased by $48,462 or 10% due to one tenant reducing its leased space and another tenant 
vacating the premises at the Industrial Park. Interest income from loans increased by $10,748 or 
8%. Grant revenues decreased by $227,773 or 43% due mainly to the expiration of the incubator 
grant; and revenues from penalties declined by $108,910 or 38% due to a decreased in the number 
of fines and the amount of assessments made against EDC beneficiaries. 
Operating Expenses 
Operating expenses decreased by $1,844,165 or 20% compared to last fiscal year. This reduction 
includes a decrease of $21 1,393 or 4% in personnel service costs due to certain positions that were 
either partially filled or remained vacant during the year and decrease in retirement expense due to 
changes in net pension liability. General and administrative expenses decreased by $320,250 or 
3 1 %; professional services decreased by $605,392 or 52%; advertising decreased by $10,389 or 
4%. These decreases were due largely to reductions of incubator expenses and a lesser extent to the 
Authority's efforts in controlling costs and improving efficiency. Inter-island travel costs decreased 
by $38,055 or 38% due to the Authority using video conferencing to conduct its meetings; grant 
expenditures decreased by $227,773 or 43% due to the close out of STEP, EZC and Incubator 
grants; and bad debt decreased by $436,603 or 74% due to the Authority taking steps in reducing 
the level of bad debt through restructuring and other flexible loan payment options. 
Nonoperating Revenues and Expenses 
Nonoperating revenues increased by $31,587 or 1% compared to last year. The change is due to 
increase in $1 32,480 or 3% in government allotment offset by a decrease in borrowers paid on time 
not to paid penalties and NSF check fees during the year. Conversely, interest expense and finance 
charges increased by $993 or 79% reflecting interest amounts and finance charges on the (IRP) 
loan from the U.S. Department of Agriculture. 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 
(UNAUDITED) 
FOR THE YEAR ENDED SEPTEMBER 30,2016 
CAPITAL ASSETS 
The Authority's capital assets as of September 30, 2016 (net of accumulated depreciation) decreased by 
$275,766 or 15% compared to last year. This difference is the cumulative effect of $158,666. Though 
there were new acquisitions to the assets, the overall decrease was $434,432 due to depreciation. 
2016 
2015 
Building & Building Improvements 
$ 9,160,848 
$ 9,158,980 
Leasehold Improvements 
867,889 
867,889 
Equipment 
1,190,689 
1,160,867 
Furniture & Fixture 
370,393 
367,993 
Vehicles 
357,197 
232,621 
Leasehold Equipment 
Total Costs 
Less: Accumulated Depreciation 
Net Capital Assets 
REQUEST FOR INFORMATION 
This financial report is designed to provide a general overview of the Authority's finances for those with 
an interest in the Authority's operation. Questions concerning any of the information provided in this 
report or request for additional financial information should be addressed to the Virgin Islands Economic 
Development Authority, Nisky Shopping Center, Suite 620, St. Thomas, VI 00802. 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORTTY 
(A Component Unit of the Virgin Islands Government) 
CONSOLIDATED STATEMENT OF NET POSITION 
AS OF SEPTEMBER 30,2016 
(With Comparative Totals for 2015) 
2016 
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 
Current Assets: 
Cash and Cash Equivalents 
$ 
4,176,702 
Investments 
1,108,725 
Other Receivables, net 
62 1,657 
Prepaid and Other Assets 
54,125 
Total Current Assets 
5,96 1,209 
Noncurrent Restricted Assets: 
Restricted Cash and Cash Equivalents 
Restricted Investments 
Restricted Loans Receivable, net 
Total Noncurrent Restricted Assets 
Capital Assets, net 
1,599,152 
Total Assets 
30,090,059 
Deferred Oufflows of Resources 
6,654,386 
Total Assets and Deferred Oufflows of Resources 
$ 36,744,445 
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 
Current Liabilities: 
Accounts Payable 
$ 
279,128 
Accrued Expenses 
55,339 
Compensated Absences 
166,767 
Interest Payable 
19,670 
Deferred Revenue 
12,93 1,650 
Loan Payable, current 
25,127 
Total Current Liabilities 
13,477,681 
Noncurrent Liabilities: 
Compensated Absences 
Security Deposits 
Deferred Revenue 
Relief Revolving Funds 
Loan Payable 
Net Pension Liability 
Total Noncurrent Liabilities 
Total Liabilities 
Deferred Inflows of Resources 
114,441 
Total Liabilities and Deferred Inflows of Resources 
40.082.457 
NET POSITION 
Net Position: 
Net Investment in Capital Assets 
Restricted Net Position 
Unrestricted Net Position 
Total Net Position 
The accompanying notes are an integral part of these financial statements. 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
CONSOLIDATED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 
FOR THE YEAR ENDED SEPTEMBER 30,2016 
(With Comparative Totals for 201 5) 
Operating Revenues: 
Allocation of Bond Proceeds 
Application and Processing Fees 
Rental Income 
Interest Income from Loans 
Grant Revenue 
Penalties 
Other Operating Revenue 
Total Operating Revenues 
Operating Expenses: 
Personnel Costs 
General and Administrative 
Occupancy 
Advertising 
Professional Services 
Travel 
Grant Expenditures 
Bad Debt 
Total Operating Expenses 
Deficiency of Revenues from Operations Before Depreciation 
(5,602,450) 
(7,271,110) 
Depreciation 
(434,432) 
(443,072) 
Operating Loss 
Nonoperating Revenues: 
Government Appropriation 
Interest Income 
Other Income 
Interest Expenses and Finance Charges 
Total Nonoperating Revenues 
Changes in Net Position 
(1,107,939) 
(2,816,826) 
Net Position, Beginning of the Year (restated) 
(2,230,073) 
586,753 
Net Position, End of Year 
$ (3,338,012) 
$ (2,230,073) 
The accompanying notes are an integral part of these financial statements. 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
CONSOLIDATED STATEMENT OF CASH FLOWS 
FOR THE YEAR ENDED SEPTEMBER 30,2016 
(With Comparative Totals for 2015) 
2016 
Cash Flows from Operating Activities 
Cash Received from Allocation of Bond Proceeds 
Cash Received from Application and Processing 
Cash Received from Tenants 
Cash Received from Loan Repayments 
Cash Received from Other Operating Income 
Cash Received from Federal Government 
Cash Paid for Grant Program 
Cash Paid for Goods and Services 
Cash Paid to Employee for Services 
Loan Disbursements 
Net Cash Provided by (Used in) Operating Activities 
Cash Flows from Noncapital Financing Activities 
Cash Received from Primary Government 
Other Income 
Interest Expense and Finance Charges 
Net Cash Provided by Noncapital Financing Activities 
Cash Flows from Capital and Related Financing Activities 
Note Principal Payments 
Acquisition of Property and Equipment 
Net Cash Used in Capital and Related Financing Activities 
Cash Flows from Investing Activities 
Interest Income 
Net Sale of Investments 
Net Cash Used in Investing Activities 
Net Increase (Decrease) in Cash and Cash Equivalents 
Cash and Cash Equivalents, Beginning of Year 
Cash and Cash Equivalents, End of Year 
Reconciliation of Loss to Net Cash Provided by (Used In) 
Operating Activities: 
Operating Loss 
Adjustments to Reconcile Operating Loss to Net Cash Provided by (Used in) 
Operating Activities: 
Depreciation Expense 
Bad Debt Expense 
Increase in Deferred Outflows of Resources 
Increase in Net Pension Liability 
Decrease in Accounts Receivable 
(Increase) Decrease in Prepaid Expenses 
(Increase) in Loans Receivable 
(Decrease) Increase in Accounts Payable and Accrued Expenses 
(Decrease) in Compensated Absences 
Increase (Decrease) in Deferred Revenue 
(Decrease) Increase in Security Deposit 
Increase in Deferred Inflows of Resources 
Increase (Decrease) in Interest Payable 
Net Cash Provided by (Used in) Operating Activities 
The accompanying notes are an integral part of these financial 
434,432 
154,960 
(4,398,702) 
5,806,388 
107,264 
( 
7,733) 
( 
1,401) 
( 490,101) 
( 
30,305) 
8,750,103 
( 
14,000) 
114,440 
390 
$ 4,388,853 
statements. 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
(A Component Unit of the Virgin Islands Government) 
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS 
SEPTEMBER 30,201 6 
NOTE 1 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Governance: The Virgin Islands Economic Development Authority (the "Authority"), was created on 
December 21, 2000, as an umbrella authority to assume, integrate and unify the functions of the 
Government Development Bank, the Economic Development Commission, the Industrial Park 
Development Corporation and the Small Business Development Agency under an executive board, 
which consists of seven members appointed by the Governor. The Authority is a public corporation 
and a semi-autonomous instrumentality of the Government of the Virgin Islands and operates under 
the provisions of Act of 6390, approved by the Twenty-third Legislature of the United States Virgin 
Islands. The general purposes and functions of the Authority were previously carried out by the 
Government Development Bank for the United States Virgin Islands which was created originally in 
1978 by Act No. 902, and subsequently amended in 1995 and 1996. 
The mission of the Authority is to accelerate the economic development of the Virgin Islands by 
providing financial and technical assistance to industrial and commercial enterprises to create and 
save jobs in the community. In this regard, the Authority is authorized, among other things, to make 
loans to eligible small business enterprises. 
The Authority is a component unit of the Government of the Virgin Islands and as such, its financial 
statements are included in the Comprehensive Annual Financial Statements of the Central 
Government. 
Economic Dependency: The Authority's sustainability depends primarily on appropriations from the 
Government of the Virgin Islands. In addition, it earns income from application fees, processing fees, 
compliance fees, and rental income from its Industrial Park facilities. During fiscal year ended 
September 30, 2016, the Authority received appropriations totaling $4,800,000 from the Government 
of the Virgin Islands, which approximates 97% of its nonoperating revenue. 
Basis of Presentation: The Authority's financial statements have been prepared in accordance with 
accounting principles generally accepted in the United States of America (GAAP) as prescribed by 
the Governmental Accounting Standards Board. The Authority uses the economic resources 
measurement focus and follows the accrual basis of accounting whereby revenue is recorded when 
earned and expenses are recorded when incurred. 
The Authority distinguishes between operating and nonoperating revenues and expenses. Operating 
revenues and expenses generally result from providing services in connection with the Authority's 
principal ongoing business operations. Operating expenses include costs and losses resulting from 
services, administrative expenses, and depreciation expense. All other revenues and expenses are 
reported as nonoperating revenues and expenses. Nonoperating revenues consist of interest generated 
from restricted and unrestricted investments in short-term investment instruments. 
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
(Continued) 
. Separate Funds: The accounts of the Authority are organized on the basis of funds, each of which is 
considered to be a separate accounting entity. All transactions are recorded in a separate set of self- 
balancing accounts, which include assets, liabilities, knd net assets, revenues and expenses. 
The following is a summary of these funds: 
- Government Development Bank Fund (GDB) accounts for the locally funded Micro Loan 
Program. This fund accounts for interest income from the operating account and certificates 
of deposits, local government appropriations, and administrative costs. The Authority's 
administration and processing of loan applications on behalf of the Virgin Islands Department 
of Agriculture and the Virgin Islands Energy Office also occur within this fund. Those 
transactions have however, been excluded from the Authority's financial statements. 
- Economic Development Commission Fund (EDC) accounts for application, activation and 
annual compliance fees. Local government appropriations are also accounted for in this 
account together with related administrative costs. 
- Small Business Development Agency (SBDA) accounts for the Federal Economic 
Development Administration Loan Funds from the U.S. Department of Agriculture, Farmers 
and Fishermen local loans, Frederiksted Revolving Loan Fund and the SDBA Direct Loan 
Fund. Appropriations from the central government and administrative costs are also 
accounted for under this fund. The SBDA legislation does not allow interest earned from its 
loan portfolio to be used for administrative purposes. The interest income is restricted and is 
used for issuing new loans. 
- Industrial Park Development Corporation (IPDC) accounts for the activities conducted by 
the IPDC. The IPDC was established in March 1984 to acquire, operate, and improve 
industrial parks in order to provide suitable sites for the location of industries to the Virgin 
Islands. The IPDC accounts for rental and investment income, and administrative costs 
associated with its operation. The IPDC does not receive any appropriations from the local 
government. 
- Intermediary Relending Program (IRP) accounts for loans that are funded by the United 
States Department of Agriculture Rural Development Program. The interest income earned 
from these loans is applied to the program's administrative costs. 
- Enterprise Zone Commission (EZC) accounts for funds committed to the task of offering 
incentives to businesses that invest in severely economically depressed designated areas of St. 
Thomas and St. Croix. As a result, employment opportunities are provided to residents of the 
areas so designated. 
- Economic Development Authority (Authority) accounts for loans that are funded through 
U.S. Department of Agriculture. 
- Tax Increment Financing (TIF) this f%nd allows projects to be financed by pledging the 
increases in tax revenues that can be reasonably anticipated to be collected by the government 
once the financed project or activity is completed. 
- 
Tour Bus Program - Financing was obtained in the amount of $1,000,000 from the PFA to 
purchase twenty-six (26) tour buses to provide ground transportation for cruise passengers on 
the island of St. Croix. The buses were sold in August of 2014 and local taxi operators are 
now providing this service. 
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
(Continued) 
- Economic Development Management (EDM) this account was established to record all 
administrative costs associated with the day-to-day operations of the Authority. 
- State Small Business Credit Initiative (SSBCI) this fund was established by the Small 
Business Jobs Act of 2010 by the Federal Government to Collateral Support Program, the 
Credit Guarantee Program and the Payment, Surety and Performance Bond Program. 
- State Trade and Export Promotion Grant Program (STEP) this program is funded by a 
federal grant from U.S. Small Business Administration. The program authorized by the Small 
Business Jobs Act of 2010 is a 3-year trade and export promotion pilot initiative to make 
matching-fund grants for states to assist 'eligible small business concerns.' The program 
objectives are to increase the number of small businesses that are exporting, and to increase 
the value of exports for those small businesses. 
- Disaster Small-Midsized Enterprises Incubator Program - The Authority was awarded a 
Federal grant in the amount of $1,000,000 that is matched with $200,000 of local funding for 
the establishment of an incubator program on the island of St. Croix. The program promotes 
resource collaborations between the local government and other community based institutions 
to create an avenue to spark economic viability and sustainability. 
Cash and Cash Equivalents: For the purposes of reporting cash flows, cash and cash equivalents are 
defined as cash on hand, demand deposits, certificate of deposits with financial institutions and all 
highly liquid investments available for current use with an initial maturity of three months or less are 
considered to be cash or cash equivalents. 
Investments: Investments in marketable securities or other short-term investments of cash with 
readily determinable fair values and investments in debt securities are reported at their fair values in 
the Authority's statement of net assets. 
Restricted Cash and Cash Equivalents: This consists of cash and cash equivalents to be used for 
specific purposes as specified by legislation or by a grant agreement. 
Allowance for Uncollectible Accounts (Loan Losses): The Authority provides for losses when a 
specific need for an allowance is indicated. The provision for loan losses charged to operating 
expenses is the amount necessary to report the net asset at its estimated realizable value. In 
determining the adequacy of the allowance, management considers the composition of the loan 
portfolio, economic factors, historical loss experience, and value and sufficiency of collateral in the 
current level of the allowance. 
Capital Assets: The Authority capitalizes all property and equipment at cost. The property and 
equipment is capitalized and depreciated using the straight line method over the assets estimated 
useful lives. The cost of normal maintenance and repairs that do not add to the value of the asset or 
materially extends the asset life are not capitalized. 
Depreciation has been provided using the straight line method. The estimated economic lives of the 
Authority's property and equipment varied as follows: 
Equipment and Furniture and Fixtures 
3-5 Years 
Vehicles 
5 Years 
Buildings and Leasehold Improvements 
5-27 Years 
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
(Continued) 
Compensated Absences: The Authority has recognized the liability for annual leave, which is payable 
to employees upon separation. Sick leave balances are not paid out upon termination, however 
liability for the balances exists in the event an employee transfers to another government agency; such 
liability is recognized at the time of the transfer. The liability for both amounts is calculated based on 
the Authority salary rates in effect at the statement of net position date. 
Use of Estimates: The preparation of financial statements in accordance with generally accepted 
accounting principles requires management to make estimates and assumptions that affect certain 
reported amounts of assets and liabilities at the date of the financial statements, and reported amounts 
of revenues and expenditures during the reporting period. Accordingly, actual results could differ 
from those estimates. 
Newly Adopted GASB Statements: In fiscal year 2016, the Authority implemented GASB Statement 
No. 72, Fair Value Measurement and Application. This statement provides guidance for determining 
a fair value measurement for financial reporting purposes. It also provides guidance for applying fair 
value to certain investments and disclosure related to all fair value investment. 
NOTE 2 
CASH AND CASH EQUIVALENTS 
Cash and cash equivalents consisted of the following at September 30,2016: 
Unrestricted 
Restricted 
Total 
Cash and Cash Equivalents 
$4,176,702 
$13,133,380 
$17,3 10,082 
Custodial Risk is the risk that in the event of bank failure the Authority's deposits may not be returned to 
it. Cash consists of cash on hand held by depository institutions and trustees in the Authority's name. 
During the fiscal year, including the final date of the period, September 30, 2016, accounts at each 
financial institution were insured by the Federal Deposit Insurance Corporation up to $250,000. Cash in 
excess of this limit are $25,126,675 and are fully collateralized. 
Restricted Cash and Cash Equivalents: The restricted cash and cash equivalents at September 30, 
201 6 consisted of the following: 
Micro Credit Loan Program 
Farmers and Fishermen Loan Fund 
Frederiksted Revolving Loan Fund 
Performance Bonding Loan Fund 
SBDA Revolving Loan Fund 
SBDA Administration Loan Fund I 
SBDA Administration Loan Fund I1 
SSBCI Grant 
The restrictions above relate to revolving loan funds established through legislation to offer direct 
assistance to various industries and businesses and to aid in the creation of economic opportunities within 
the United States Virgin Islands. 
NOTE 3 
INVESTMENTS 
The Authority categorizes its fair value measurement within the fair value hierarchy established by 
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure 
fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 
inputs are significant other than observables inputs; Level 3 inputs are significant observable inputs. At 
September 30,201 6, the Authority's investments consisted of certificate of deposits which had a recurring 
fair value of $7,094,205 at year-end. The certificate of deposits is classified as Level 2 in the fair value 
hierarchy and is valued at amortized cost plus accrued interest. 
Investment Maturities 
Less than 
Investment Type 
Fair Value 
1 Year 
1-5 Years 
Certificates of Deposits 
$7,094,205 
$1,108,725 
$5,985,480 
NOTE 4 
RESTRICTED NET POSITION FOR LOAN PROGRAMS AND OTHER FUNDS 
The restricted net position at September 30, 2016, consists of the following: 
Micro Credit Loan Program 
Farmers and Fishermen Loan Fund 
Frederiksted Revolving Loan Fund 
Performance Bonding Loan Fund 
Intermediary Relending Loan Fund 
SBDA Revolving Loan Fund 
SBDA Administration Loan Fund I 
SBDA Administration Loan Fund I1 
SSBCI Grant 
NOTE 5 
LOANS RECEIVABLE 
Loans receivable as of September 30,2016 was as follows: 
Loan Principal 
$4,299,018 
Allowance for Doubthl Accounts 
( 888,180) 
Net Loans Receivable 
$ 3,410,838 
The loans bear interest rates ranging from 4% to 12%. The majority of the allowance for doubtful 
accounts is attributed to SBDA & GDB loans which were assumed by the Authority at its inception. No 
additional allowance was recorded in fiscal year 20 16. 
i 
NOTE 6 
OTHER RECEIVABLES 
The other receivables balance as of September 30,2016: 
Interest Receivable 
Performance Bonding Receivable 
GDB Receivable 
EDC Fees & Charges 
SBDA Receivable 
Rent Receivable 
Grant Receivable - Board Up & Scrap 
EZC Compliance Receivable 
Tax Increment Financing Fund 
Economic Development Management 
Incubator Grant 
Receivable - Taxi-Tour Bus 
Total 
Other 
Receivables 
Allowance 
~ 
Allowance for uncollectible accounts was $504,410 in fiscal year 20 16. 
NOTE 7 
CAPITAL ASSETS 
Capital assets are composed of the following at September 30,2016: 
Capital Assets 
Building and Building Improvements 
Leasehold Improvements 
Equipment 
Furniture and Fixtures 
Vehicles 
Leasehold Equipment 
Total Capital Assets 
Accumulated Depreciation 
Building and Building Improvements 
Leasehold Improvements 
Equipment 
Furniture and Fixtures 
Vehicles 
Other 
Receivables, net 
$ 
1 1,675 
412,646 
82,644 
72,708 
1,785 
22,300 
40 
5,330 
Beginning 
Balance 
Additions 
Retirement 
Ending 
Balance 
Leasehold Equipment 
( 
20,585) 
( 
20,585) 
Total Accumulated Depreciation 
(9,934,017) 
( 434,432) 
( 10,368,449) 
Capital Assets, net 
$ 1,874,918 
$ ( 275,766) 
$ 
$ 1,599,152 
Depreciation expense for the year ended September 30,2016 totaled $434,432. 
NOTE 8 
LOANS PAYABLE 
The Authority entered into an Intermediary Relending Program loan agreement (IRP) with the United 
States Department of Agriculture Rural Business Cooperative Services on April 21, 1998. This agreement 
requires the repayment of the approved loan principal of $670,530 to begin after three (3) years in twenty- 
seven (27) equal annual installments. An interest rate of 1% accrues on the outstanding balance. As of 
September 30,20 16, the outstanding loan balance was $3 19,117. 
As of September 30,2016, the outstanding loan balance is comprised of the following: 
Beginning 
Due 
Ending 
Within 
~alance- 
Additions 
Deductions 
~alance 
One Year 
Loan Payable 
$343,275 
$ 
- 
$ (24,158) 
$ 319,117 
$ 25,127 
-- 
Future minimum payments to the U.S. Department of Agriculture are as follows: 
2021 -2028 
2 17,09 1 
Total 
$ 319.117 
NOTE 9 
COMPENSATED ABSENCES 
Compensated absences balance as of September 30,2016 was $322,434 of which $166,767 is due within 
a year. 
NOTE 10 
LEASES 
Lessor --- The Authority leases office properties from the Industrial Park Development Corporation, 
wholly owned component unit of the Virgin Islands Economic Development Park Corporation. The terms 
of the leases vary from one to five years, with monthly rent payments dependent on the amount of square 
footage occupied and the location of the property. 
Lessee --- The Authority leases office space, under a five year lease term, from January 1,201 3 through 
December 31, 2017, for office and common area spaces with increases in rent on the 2nd and 4' 
anniversaries equal to the percentage of the cost of living increase for the preceding year, based upon the 
Consumer Price Index (CPI-U) as published by the U.S. Department of Labor Bureau of Labor Statistics. 
In addition, the Industrial Park buildings are located on parcels of leased land. The land is rented under a 
thirty (30) year term lease which expires May 2013. Two additional ten year option periods are available 
to the Industrial Park with the rental amounts based upon the Bureau of Labor Statistics7 Consumer Price 
Index. 
Rent expense for the year ending September 30,2016 was $282,655. The aggregate lease commitment for 
the Authority is as follows as of September 30,2016: 
2017 
$ 
166,600 
October - December 20 17 
41,650 
Total 
NOTE 11 
DEFERRED REVENUE 
Current Deferred Revenue: Represent grant funds received in fiscal year 2012 from the United States 
Department of Treasury for the State Small Business Credit Initiative. The amount not expended as of the 
fiscal year end has been reflected in the financial statement as current deferred revenue in the amount of 
$12,931,650 for fiscal year 2016. 
Noncurrent Deferred Revenue: In October 2009, the Virgin Islands Public Finance Authority (VIPFA) 
issued $87,000,000 in bonds of which $5,000,000 was allotted to the Authority. These funds are to be 
utilized for developmental loan programs and are drawn down from VIPFA as loans are issued. Out of the 
noncurrent deferred revenue reflected in the financial statements $1,000,000 represents advanced funds 
received from VIPFA in fiscal year 2009. The deferred revenue will be relieved as additional loans are 
made in the future. 
NOTE 12 
PENSION PLAN 
The Authority follows the provisions of GASB Statement No. 68 Accounting and Financial Reporting for 
Pensions - an amendment of GASB Statement No. 27. This Statement establishes financial reporting 
standards for state and local governments for pensions. 
Plan Description 
The Authority employees are members of the Employees' Retirement System of the Government of the 
U.S. Virgin Islands ("GERS"), cost sharing single employer defined benefit, public employee retirement 
system as defined by GASB 68. The system was established by the Government to provide retirement, 
death and disability benefits to its employees. All of the Authority's full-time regular employees are 
mandated to participate in the retirement plan administered by GERS. 
The Authority's part-time employees who regularly work more than 50% of the normal work period, and 
full-time regular employees who at the time of employment are under age 55 years with one year of 
government service are eligible to participate in the system. Effective January 1, 2015, the Authority's 
required contribution was 20.5% of the member's annual salary. Prior to that date, the percentage was 
17.5%. Effective January 1, 2015, member contributions were 9 and 9.5% for Tier I and Tier I1 
employees. Prior to that, member contributions were 8 and 8.5% for Tier I and Tier I1 employees 
respectively. Total amount of the Authority's covered payroll for the year ended September 30,2016 was 
$2,149,268. 
Plan descriptions, funding policies, and a schedule of employee required and paid contributions for the 
defined benefit plans are presented in the Virgin Islands Comprehensive Annual Financial Report 
(CAFR) for the fiscal year ended September 30, 2016. The CAFR also provides detailed historical trend 
information showing the progress in accumulating sufficient assets to pay benefits when due. In addition, 
GERS issues a publicly available report that includes financial statements and required supplementary 
information. 
This financial report may be obtained from the Employees Retirement System of the Government of the 
Virgin Islands, GERS Complex, 3438 Kronprindsens Gade, St. Thomas, VI 00802. 
NOTE 13 
NET PENSION LIABILITY 
Net Pension Liability 
Effective July 1, 2014, the Entity implemented the provision of GASB Statement No. 68, Accounting and 
Financial Reporting for Pensions - an amendment of GASB Statement No. 27, as amended by GASB 
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an 
amendment of GASB Statement No. 68. Following is a description of the pension plan and accounting for 
pension expense, liabilities, and deferred outflows/inflows of resources. 
~ 
Plan Description and Benefits 
Full time employees of the Authority are members of the Government Employees' Retirement System of 
the Virgin Islands (GERS), a cost sharing multiple-employer, defined benefit pension plan (the plan) 
established as of October1,1959 in accordance with Title 3, Chapter 27 of the Virgin Islands Code to 
provide retirement, death, and disability benefits. Benefits may be extended to beneficiaries of plan 
members. The plan covers all employees of the Government, including the Entity, except employees 
compensated on a contract fee basis, casual, per diem or provisional and part time employees who work 
less than 20 hours per week. Persons over the age of 55 may opt out of the plan by providing formal 
notification to the plan. Vesting of benefits occurs after 10 years of service. Benefits may be extended to 
beneficiaries of plan members. 
There are two tiers within the plan: 
Tier I: Employees hired prior to September 30,2005 
~ 
Tier 11: Employees hired on or after October 1,2005 
Regular employees who have completed 30 years of credited service or have attained age 60 with at least 
10 years of credited service are eligible for a full-service retirement annuity. Members who are considered 
"safety employees" as defined in the Code are eligible for full retirement benefits when they have earned 
at least 20 years of service or have reached the age of 55 with at least 10 years of credited service. 
Regular and safety employees who have attained age 50 with at least 10 years of credited service may 
elect to retire early with a reduced benefit. 
The monthly annuity benefit payment is determined by applying a stipulated benefit ratio to the member's 
average compensation. Average compensation for Tier I members is determined by averaging the five 
highest years of credited service within the last ten years of service, subject to the maximum salary 
limitations in effect during such service. Average compensation for Tier I1 members is determined by 
averaging the most recent five years of credited service within the last ten years of service, subject to the 
maximum salary limitations in effect during the service. The maximum annual salary that can be used in 
this computation is $65,000, except for senators and judges, whose annual salary is used. 
I 
Funding and Contribution Policy 
Contributions to GERS are established by the Board of Trustees of GERS. The Government's required 
employer contribution for Tier I and Tier I1 members through December 31, 2015 was 20.5% of the 
member's annual salary. 
Effective January 1, 2016, Tier I member contributions increased by 1% to 10% of annual salary for 
regular employees. Member contributions will increase an additional 1% on January 1,2017, and January 
1, 2018. 
NOTE 13 - NET PENSION LIABILITY 
(Continued) 
Effective January 1, 201 6, Tier I1 member contributions increased by 1 % to 10.5% of annual salary for 
regular employees, and will increase an additional 1 % on January 1,201 7, and January 1,201 8. 
Prior to June 29, 2000, member contributions were refundable without interest upon withdrawal from 
employment before retirement. Effective July 1, 2009, GERS' Board of Trustees approved an effective 
annual interest rate on refunded contributions of 2% per annum. 
Both the Plan and the Authority have a September fiscal year end. GASB Statement No. 68 requires that 
the reported results must pertain to liability and asset information within certain defined time frames. For 
this report, the following time frames are used: 
Valuation Date: 
Measurement Date: 
Measurement Period: 
October 1,201 5 
September 30,201 5 
October 1,2014 - September 30,201 5 
The Authority's proportionate share of employer contributions recognized by GERS was $413,049 for the 
Plan's fiscal year ended September 30,2015. 
Pension Liabilities and Expense and Deferred Oufflows/Inflows of Resources 
As of September 30, 2016, the actuarial calculated net pension liability for the Authority's proportionate 
share of the net pension liability of the Plan was $24,609,495. The net pension liability of the Plan is 
measured as of September 30, 2015, and the total pension liability for the Plan used to calculate the net 
pension liability was determined by an actuarial valuation as of October 1, 2015. For the measurement 
date September 30, 2015, there was a change in assumptions for calculating the proportionate share. 
Actuarially determined proportionate share information from GERS was estimated by management based 
on an average three-year respective share of Authority's contributions to the Plan relative to all 
contributions to the Plan. For the measurement date September 30, 2014, proportionate share information 
from GERS was estimated by management based on the respective single year contributions. At 
September 30,2015, the Authority's proportion was .6044 percent, which was an increase of .00475 from 
its proportion measured as of September 30,2014. 
For the year ended September 30,2016, the Authority recognized $425,789 of pension expense, inclusive 
of amortization of deferred outflows of pension related items. Following is a schedule of deferred 
outflows/inflows of resources allocated to the Authority in the computation of net pension liability: 
Deferred 
Deferred 
Oufflows by 
Inflows of 
Resources 
Resources 
- 
~ 
Change in assumptions 
$4,562,759 
$ 
- 
Difference between expected and actual experience 
624,828 
Net difference between projected and actual earnings on 
pension plan investments 
459,444 
Change in proportionate share 
1,007,355 
1 14,44 1 
NOTE 13 - NET PENSION LIABILITY 
(Continued) 
Amounts reported as deferred outflows, exclusive of contributions made after the measurement date, will 
be recognized in pension expense as follows: 
Year ending September 30, 
2016 
$ 
1,294,630 
Actuarial Assumptions 
A summary of the actuarial assumptions and methods used to calculate the total pension liability as of 
September 30, 2015, is provided below, including any assumptions that differ from those used in the 
October 1, 2015 actuarial valuation. Refer to October 1, 2015 actuarial valuation report for a complete 
description of all other assumptions, which can be found on GERS' website 
Inflation Rate: 
Salary Increases: 
Actuarial Cost Method: 
Expected Rate of Return: 
Municipal Bond Yield: 
Discount Rate: 
Mortality Table: 
2.55% 
2.25% including inflation 
Entry Age Normal 
7.00% 
3.71% 
3.84% 
RP-2014 Blue Collar 
Investment Rate of Return 
The long-term expected rate of return of 7.5% on plan investments was determined using a building-block 
method in which best-estimate ranges of expected hture real rates of return (expected returns, net of 
pension plan investment expense and inflation) are developed for each major asset class. These ranges are 
combined to produce the long-term expected rate of return by weighting the expected hture real rates of 
return by the target asset allocation percentage and by adding expected inflation. Best estimates of 
arithmetic real rates of return for each major asset class included in the plan's target asset allocation as of 
September 30,2015, are summarized as follows: 
Domestic equity 
International equity 
Fixed income 
Alternative 
Cash 
NOTE 13 - NET PENSION LIABILITY 
(Continued) 
Discount Rate 
The discount rate used to measure the total pension liability was 3.84% as of September 30, 2015 and 
4.87% as of September 30, 2014. The projection of cash flows used to determine the discount rate 
assumed plan member contributions will be made at the current contribution rate, including the future 
increases in the employee contribution rates legislated. Based on those assumptions, the plan's fiduciary 
net position was not projected to be available to make all projected future benefit payments of current 
plan members. Therefore, the long-term expected rate of return on plan investments of 7.0% was applied 
to all periods of projected benefit payments that are covered by projected assets. For periods where 
projected future benefit payments are not covered by projected assets, the yield on a 20-year AA 
Municipal Bond index was applied, which was 3.71% and 4.1 1% at September 30, 2015 and 2014, 
respectively. 
Sensitivity of Proportionate Share of Net Pension Liability to Changes in the Discount Rate 
The following presents the Authority's allocation of its proportionate share of the net pension liability 
(NPL) for the plan, calculated using the discount rate, and what the allocation of the Authority's 
proportionate share of the net pension liability would be if it were calculated using a discount rate that is 
1 % higher than the current rate. 
1 % Decrease Share 
Share of NPL 
1% Increase 
of NPL 0,2.84% 
@3.84% 
Share of NPL @4.84% 
Detailed information about pension plan's fiduciary net position is available in the separately issued 
GERS financial report. 
NOTE 14 
COMMITMENTS AND CONTINGENCIES 
In the normal course of business, the Authority has various outstanding commitments at September 30, 
201 6, which includes outstanding loan commitments in the process of being approved by the Board of 
Directors which are not reflected on the statement of net assets. 
The Authority asserts that there have not been any material claims, suits or complaints filed nor are any 
pending against the Authority. In the opinion of management, all other matters which are asserted or 
unasserted are without merit and would not have a significant effect on the financial position or results of 
operations if they were disposed of unfavorably. 
NOTE 15 
RISK MANAGEMENT 
The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction of 
assets; and natural disasters for which the Authority has commercial insurance coverage. Annual premium 
payments are made in proportion to the anticipated exposure to the liability losses assessed. 
NOTE 16 
SUBSEQUENT EVENTS 
The Authority's management has evaluated subsequent events through April 13, 2017, the date the 
financial statements were available to be issued. The accompanying financial statements recognize the 
effects of subsequent events that provided evidence about conditions that exist at the balance sheet date, 
including the estimates inherent in the process of preparing financial statements. The accompanying 
financial statements do not recognize the effect of subsequent events that did not exist at the balance sheet 
date, but disclosures of such events, if any, are included in the accompanying notes. 
THE VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
CONSOLIDATED SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY 
COMPONENT UNIT OF THE GOVERNMENT OF THE U.S. VIRGIN ISLANDS 
EMPLOYEES' RETIREMENT SYSTEM OF THE GOVERNMENT OF THE U.S. VIRGIN ISLANDS 
Last 10 Fiscal Years 
Proportion Share of the Net Pension Liability 
Proportionate Share of the Net Pension Liability 
Covered-Employee Payroll 
Proportionate Share of the Net Pension Liability as a Percentage of 
Covered-Employee Payroll 
1145% 
892% 
Plan Fiduciary Net Position as Percentage of the Total Pension Liability 
19.58% 
27.03% 
The schedule is intended to show a 10-year trend. Additional years will be reported as they become available. 
Measurement date - September 30,2015 and 2014 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
CONSOLIDATED SCHEDULE OF CONTRIBUTIONS 
COMPONENT UNIT OF THE GOVERNMENT OF THE U.S. VIRGIN ISLANDS 
EMPLOYEES' RETIREMENT SYSTEM OF THE GOVERNMENT OF THE U.S. VIRGIN ISLANDS 
LAST 10 FISCAL YEARS 
Contractually Required Contributions 
Contributions in Relation to the Contractually Required Contribution 
( 437,513) 
(388,619) 
Annual Contribution Deficiency (Excess) 
$ 771,830 
$ 677,905 
Covered Employee Payroll 
$ 2,149,268 
$ 2,106,050 
Contributions as a Percentage of Covered Employee Payroll 
20.33% 
18.45% 
The schedule is intended to show a 10-year trend. Additional years will be reported as they become 
available. 
VIRGIN ISLANDS ECONOMIC DEVELOPMEN TAUTHORITY 
CONSOLIDATED COMBINING SCHEDULE OF NET POSITION 
AS OF SEPTEMBER 30,2016 
(With Comparative Totalsfor2015) 
ASSETS 
GDB 
EDM 
- 
EDC 
SBDA 
- 
IPDC 
- 
IRP 
En: 
- 
USE 
SSBCI 
STEP 
INCUBATOR 
TourBus 
Eliminations 
2016 
2015 
Variance 
Current Apsets: 
Cash and Cash Equimlents 
In\estrnents 
Reeimble, net 
Due from Other Fund 
Prepaid 8 Other Assels 
Total Current Assets 
2,849.761 
2.850.137 
3,395.527 
276,605 
250.682 
217.769 
21.813 
1 
1.079.548 
24,372 
27,563 
60.366 
5,092,955 
5.961.208 
4,655,257 
1,305,952 
Non-Current Assets 
Restricted Cash 8 Cash Equimlents 
2.880.780 
- 
1,284,897 
291,624 
- 
8,675,979 
- 
13,133,380 
5,633.701 
7,499,679 
Restricted In\estments 
2,680,323 
52.300 
- 
3,243,857 
5,965,460 
5,755.669 
229,811 
Restricted Loan Receimble, net 
2.544.226 
576.850 
20.411 
269.351 
3,410,638 
3,584.397 
(153,559) 
Total NowCurrent Assets 
8.114.329 
- 
1,861.847 
20.411 
613,275 
- 
11,919,836 
- 
22,529,698 
14,953,767 
7,575,931 
Capital Assets, net 
10.814 
683,325 
325 
96,937 
607,751 
1,589,152 
1,674,818 
(275,766) 
Total Asssts 
10,974,604 
3,533,462 
3.395.652 
2,235.389 
1,058,433 
238.180 
21.813 
613,275 
1 
12,999,384 
24.372 
27,563 
60,386 
5,092,955 
30,090,059 
21,483,842 
6.606.117 
Deferred Outflowsof Res~urms 
- 
6,141,125 
513,261 
6,654,386 
2,255,684 
4.398.702 
Total Assstsand Deferred Outflawsof Resources 
10,974,604 
9,674,587 
3,395,852 
2,235,388 
1,571,684 
236.180 
21,813 
613,275 
1 
12,999,384 
24.372 
27.563 
60,386 
5.092.955 
36,744,445 23,739,626 
13.004.819 
- 
LIABILITIES 
Current Liabilities 
Accounts Payable 
210 
210,309 
47.500 
2.790 
18.250 
69 
279,126 
772.665 
(493.537) 
Accrued Expenses 
55,339 
55,339 
51.903 
3.436 
Compensated Absences - Current 
152,304 
14,463 
166.767 
52,286 
114.481 
Interest Payable 
16.245 
1.425 
19.670 
18,280 
390 
Due to Other Fund 
- 
4,374.477 
10 
187,308 
7,596 
12,780 
444.808 
85,975 
5.092.955 
Deferred Remue 
21,767 
- 
12.901.740 
8.143 
- 
12.931.650 
4,161,547 
8,750.103 
Long Payable - Current 
25,127 
25.127 
24,571 
556 
Total Current Liabilities 
18,455 
4.792.429 
47,510 
2,790 
220.022 
26.552 
21,767 
69 
7,596 
12.914.520 
6,143 
444,808 
65.975 
5,092,955 
13.477.681 
5.102.252 
8,375,429 
Non-Current Liabilities 
Compensated Absences 
142.080 
13.587 
155,667 
300.453 
(144,786) 
Security Deposlt 
31,183 
31,183 
45.183 
(14.000) 
Deferred Revznue 
1.000.000 
1.000,OW 
1,000.000 
Relief Remling Funds 
400.000 
400,000 
400.000 
Loan Payable 
293.990 
293,990 
318.704 
(24.714) 
Net Pension Liabiliy 
- 
22,651,693 
- 
1,957,602 
- 
24,609,495 18,803,107 
5.806.388 
Total Non-Current Liabilities 
1.000.000 
22,793,773 
400.000 
2,002,572 
293.990 
- 
26,490,335 20,667,447 
5,622,888 
Total Liabilities 
1,018,455 27,586,202 
47,510 
402.790 
2,222,584 
320,542 
21,767 
69 
7.596 
12,914.520 
8.143 
444.608 
65.975 
5,092,955 
39,968.016 
25,968,689 
13,996,317 
Deferred lnflowsof Res~urms 
13,078 
101,363 
114.441 
114.441 
Total Liabiliiiesand Deferred lnflowsof Res~urms 
1.018.455 
27,599.280 
47,510 
402,790 
2,323.957 
320,542 
21,767 
69 
7,596 
12,914.520 
8,143 
444.808 
65.975 
5,092,955 
40,082.457 
25.969.699 
14,112,758 
NET POSITION 
Inmted in Capkal Assets, net of related debt 
10.614 
683.325 
325 
96,937 
807.751 
1.599.152 
1.874.918 
(275,766) 
Restricted Net Poslion 
7,114,329 
- 
1,861,848 
- 
(298.706) 
613,275 
- 
11.919,636 
- 
21.210.583 
12.914.073 
8,296,510 
Unrestricted Net Pasiton 
2,631,307 (18.608.018) 
3.348.017 
(126,187) (1,560.014) 
216,344 
46 
(69) 
(7,595) (11.834.972) 
16,229 
(417,245) 
(5.589) 
- 
(26,147,746) (17,019,084) (9,128,682) 
Total Net Position 
$ 
9,956,449 $ (17,924,693) 
$ 3,348,342 $ 
1,632,599 $ 
(752.283) $ 
(82.362) $ 
46 $ 
613,206 3 
(7,595) $ 
84.884 $ 
16.229 $ 
(417,245) $ 
(5,589) $ 
- 
$ 
(3,338,012) 
$ (2,230.073) $ (1,107,939) 
Operating Revenues 
Allocation of Bond Proceeds 
Application and Processing Fees 
Rental Income 
Interest income from Loans 
Grant Reenue 
Penalties 
Other Operating income 
Total Revenue 
Operating Expenses 
Personnel Costs 
General and Administrati* 
Occupancy 
Adertising 
Professional Senices 
T a e l 
Grant Expenditure 
Bad Debt 
Total Operating Expenses 
Excess (Deficiency) of Reenues from Operations 
Before Depreciation and Other Assets 
VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 
CONSOLIDATED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION 
FOR THE YEARS ENDED SEPTEMBER 30,2016 
(With Comparative Totalsfor 2015) 
GDB - 
EDM - 
EDc 
lPDC 
- 
iRP 
UC 
- 
TIF 
SSBcl 
STEP 
INCUBATOR 
Tour Bus 
2016 
- 
2015 
Depreciation 
2.679 
181,259 
16.077 
5.960 
227,859 
598 
434,432 
443.072 
Operating Income (Loss) 
245.804 
(6,517,191) 
630.631 
18.169 
(410.507) 
2.170 
4 
(8.797) 
(598) 
3.432 
- 
(6,036,883) 
(7,714,182) 
NonOperating ReEnues (Expenses) 
Goemment Appropriation 
- 
4.800.000 
- 
4,800,000 
4,667,520 
Interest Income 
13,329 
10.251 
161 
883 
41,073 
65.697 
51,384 
Other Income 
29.531 
9,209 
23.00 
26,730 
65.493 
179,705 
Interest Expense & Finance Charges 
(4,696) 
2,450 
(2.246) 
(1,253) 
Total Non-Operating Rewnues 
13,329 
4,839,782 
9,370 
883 
(4,673) 
29.180 
41.073 
- 
4,928,344 
4,897.356 
Changes in Net Assets 
259.133 
(1,677,409) 
630,631 
27.539 
(409,624) 
(2.503) 
4 
20.383 
41.073 
(598) 
3.432 
- 
(1,107,939) 
(2.816.826) 
Net Assets. Beginning of Year 
9,697,316 
(16.247.284) 
2,717,711 
1,805,060' 
(342.639) 
(79.859) 
42 
592.823 
(7.595) 
43.791 
16,827 
(420.677) 
(5,589) 
(2,230,073) 
586.753 
Net Assets. End of Year 
$ 
9.956449 $ (17.924.693) $ 
3,348.342 $ 
1.832.599 $ 
(752.263) $ 
(82.362) $ 
46 $ 
613,206 $ 
(7,595) $ 
84.864 $ 
16,229 $ 
(417.245) $ 
(5.589) $ (3.338.012) $ (2,230,073)