H U-W ANGA
AT I
I NU
HA
IN
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RPORATI
ON
Toi tu te whenua
ANNUAL REPORT 2016
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E te mōrehu whenua, nei rā te mōrehu tangata E mihi kau ake ana ki ngā mātua tūpuna, nā rātau koe i pupuri hei taonga tuku iho Kia ahatia? Kia Toi tū te whenua! Koutou e te hunga rūpeke – haere ki Te Turi o Murimotu, ki Paretetaitonga. Hoki wairua mai i te wā iti nei kia tangihia koutou e ā koutou uri e tangi maioha atu nei. Nau mai tātau ki tā tātau hui ā-tau i te 2016 nei. Haere mai ki te whakarongorongo, haere mai ki te kōrero. Haere mai tātau katoa.
H U-W ANGA
AT I
I NU
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RPORATI
ON
Toi tu te whenua
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CONTENTS TOITŪ TE MANA 6 9 10 12
Ātihau Whanganui Incorporation Chairperson's Report Board Members Strategic Overview Agricultural Training Partnership Provides Foundation for Future
TOITŪ TE WHENUA 14 19 20
CEO Report Financial Health Statement Summary of Key Financial Information
TOITŪ TE TANGATA 22 28
Te Āti Hau Trust Chairperson's Report 2015/16 Trust Grant Recipients
ĀTIHAU-WHANGANUI INCORPORATION FINANCIAL STATEMENTS 39 40 41 42 44 45 46 62
Contents Shareholding and CoM Disclosures Statement of Comprehensive Income Statement of Changes in Equity Balance Sheet Statement of Cash Flows Notes to and forming part of the Financial Statements Auditors' Report
TE ĀTI HAU TRUST FINANCIAL STATEMENTS 65 66 68 69 70 71 72 76
Contents Entity Information Statement of Service Performance Statement of Financial Performance Statement of Financial Position Statement of Cash Flows Notes to and forming part of the Performance Report Auditors' Report
APPENDIX 78 80
2015 AGM Summarised Minutes Glossary of Terms
Cover: Kararaina Haami-Cooper (Te Ātihaunui-a-Paparangi), photographed at Te Pā Station, is a student on the Awhiwhenua Agricultural Training Course.
Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT
He hōnore, he korōria ki te Atua Maungārongo ki te whenua Whakaaro pai Ki ngā tāngata katoa Tihei mauriora As a people, we seem to have been extra busy this past year inching closer to settlements, structuring new entities to take us forward, actively participating in the review of government policy and now just behind us local body elections. Please, I hope we all exercised our democratic right and VOTED! Your AWHI board have also been busy, and I am pleased and proud to present this annual report on our behalf. Firstly though, to those whanau who have been and continue to grieve, tōku arohanui. To those who have health challenges, kia kaha. To those who celebrate new life, tihei mauriora. To the rest of us, let us give sincere thanks. We have been listening... Our Annual General Meeting is a great time for whanaungatanga, but also a time for you to express your thoughts and concerns. We are grateful for this interaction and we take it very seriously. Not only do we wish to respectfully listen, but where it makes sense we want to “make it happen”. I am pleased to list here a couple of those repeat issues and our implemented response. Lets keep the kōrero going.
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acknowledge the smart work of our Management and Operational teams for the seamless manner in which this occurs. Please view on page 10 the high level strategic placeholders we have affirmed. Knowing our customers and having them know us has been an important component of our strategy. To that end this past year we have hosted: • The Glerup whanau from Norway, through NZ Merino where increasing kilograms of our crossbred wool goes to make the renowned Glerup footwear. • Twice this year, we hosted Matt Wadiack one of the founders of Blue Apron and Bill Niman of BN Ranch, San Francisco. They are both key drivers of Blue Apron, the USA equivalent of My FoodBag. This USA business supplies in excess of eight million meals across the USA every month; it is only four years old. • Topping Cuisine from China and Paradigm Investments from Taiwan enjoyed our manaakitanga and are keen to consider red meat contracts into Asia. A number of these visits have been reciprocated, strengthening those relationships
Strategic refresh
Part of our strategy has recognised the big issue of safety in the workplace, a matter the board now has legislative responsibility for. We have received instruction and developed policy from board to farm staff to our contractors on what this means for us as individuals and as governors, staff and stakeholders. Lots of work, but if it means our whanau get home safely every night after work, then it is well worthwhile.
We continue to annually review our strategy and then allow this to inform our farm plans and budgets. It is always a thrill when strategy is well executed and the results emerge. On behalf of the board can we
Our other large piece of work has included a review and refresh of our risk policy and matrix. This can often feel like a hōhā, except when it happens. This work will continue into the New Year.
Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT Whanaungatanga Last year we shared kai and kōrero with Ngāti Rangi and Ngāti Uenuku. This year we had hui with Ngaporo Waimarino Trust and Pipiriki Incorporation. An historic gathering as we talked about our challenges and aspirations, then agreed to consider how we might work together on some shared projects. AWHI again expresses appreciation to those various board members for their generosity of time and thought. We were heartened with the number and quality of applications received for the Te Āti Hau Trust Independent board position. This highlighted the levels of interest of our people for leadership experience. To that end AWHI is formulating a Governance Leadership programme that will provide a quarterly forum of keynote speakers or workshops where this cohort and various board members can connect and reflect. A succession and development programme for all our Whanganui Waimarino entities. We invite your feedback. In the spirit of open transparency, we are pleased to note the formal
lease of the Paetawa Block to Te Urumingi Trust. Paetawa was a leased block returned earlier than AWHI was prepared for, but nevertheless always a milestone when our whenua is returned. Although AWHI had this block earmarked for our honey strategy, Te Urumingi was highly desirous to lease and reconnect the relevant whanau back to this whenua. We have been negotiating for almost a decade to ensure that this becomes a win-win for the shareholders of AWHI, the business of AWHI and the descendants of the tūpuna associated with the Paetawa Block. This is a discrete parcel of land and a commercial market rental has been agreed. AWHI looks forward to a positive relationship with Te Urumingi Trust on this whenua tuku iho. Personal and Professional Development AWHI were pleased to send our CEO Andrew Beijeman to the Stanford University Te Hono Bootcamp earlier this year. This gave a great opportunity to not only be part of the amazing spirit and innovative mindset of Stanford University but also to network with
Toitū Te Mana
business leaders of Aotearoa. The board is seeing results of the “change up” already, a great investment. As a member of Waka Aotearoa, being a group of pastoral farming leaders, I travelled to San Francisco where, amongst other things, we were challenged by being presented with a a hamburger that looked like a burger, smelt like a burger and tasted like a burger... except is was made totally from soy! There have been millions of dollars invested into this new technology, and it is not going away. The catch phrase was “have a burger, where no animal had to die”. This is the future we need to plan for. I was again invited to attend the Prime Minister's Business Delegation to China earlier this year and was
NGAPORO WAIMARINO FOREST TRUST
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Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT
able to re-engage with some key partners including Nongfu Spring and Topping Cuisine, both who have been previously hosted at our marae and on our lands. They present opportunities for direct market access that we continue to consider, and undertake due diligence. Whatarangi and Christina travelled to the United Kingdom on their own account with an ANZCO Red Meat Waitrose Study Tour. This gave them an insight to the ‘paddock-to-plate’ production line giving the consumer what they want. As AWHI is heading in this direction as a consumer-focussed producer it was great to stay abreast of this mature UK market.
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many avenues as is sensible to enable your feedback. We know you enjoy our AWHI magazine and we look forward to sharing more of our amazing stories past and present. Keep telling us about the things you enjoy most and least. In Closing
Staying Close
I do believe it is important to comment, that as the growth of AWHI continues, the business continues to require increased levels of skill and expertise. Good business today is complex. Included on page 4 of the AGM Information Booklet is a skills matrix of the elements and capabilities of an effective board, taken from the Institute of Directors. Consider this as you cast your very important vote.
Thank you to those who responded to our survey, we will look to do this reasonably frequently so we offer as
It is important to acknowledge our people who work smart and hard for us whether it be with our customers
and suppliers, in our offices or on our farms. We are ONE FARM, ONE TEAM. We congratulate our CEO Andrew for continuing to grow into this very important role, and his ability to strengthen his very able team. To the board, thank you for your ongoing support, diligence and commitment. To the whānau of Ātihau Whanganui Incorporation, it remains our honour to serve you. E mihi kau ana me ngā manaakitanga o te Kirihimete ki a koutou. Nāku nā
Mavis Mullins Chairperson
Ä€tihau-Whanganui Incorporation BOARD MEMBERS
Jim Edmonds
Mavis Mullins (Chair)
Whatarangi Murphy-Peehi
Keria Ponga
Brendon Te Tiwha Puketapu
Toni Waho
Che Wilson
(Independent Director, Audit & Risk Committee)
Laurissa Cooney
Francene Wineti (Associate Director)
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Ātihau-Whanganui Incorporation STRATEGIC OVERVIEW
OUR PURPOSE. TOITŪ TE WHENUA PRODUCTIVE LAND
TOITŪ TE TANGATA
PROSPEROUS PEOPLE
TOITŪ TE MANA
PASSIONATE CUSTOMERS
OUR PRIORITIES. OUR PEOPLE THE ENVIRONMENT PROFITABILITY VALUE DIVERSIFICATION SHAREHOLDER CONNECTIVITY
OUR VALUES.
ONE FARM, ONE TEAM
PROVIDING MANAAKI FOR LAND, ANIMALS, RESOURCES AND PEOPLE. SEEKING CONTINUOUS IMPROVEMENT. DELIVERING CUSTOMER VALUE. ACTING WITH INTEGRITY. SHAPING A BETTER FUTURE FOR MOKOPUNA.
Toitū Te Mana
STRATEGIC OUTCOMES. 1 OPERATIONS
WE ARE THE BEST AT WHAT WE DO.
4 ENVIRONMENT WE LOVE AND NURTURE OUR ENVIRONMENT.
2 CUSTOMERS
WE HAVE PASSIONATE AND SATISFIED CUSTOMERS.
3 WEALTH
WE HAVE SUSTAINED ECONOMIC GROWTH.
5 SHAREHOLDERS
WE BENEFIT AND ENGAGE WITH URI IN MEANINGFUL WAYS.
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Ātihau-Whanganui Incorporation LAND-BASED TRAINING
Agricultural training partnership provides foundation for future Land Based Training, Te Āti Hau Trust and Ātihau Whanganui Incorporation (AWHI) have a long history in developing training opportunities for youth in the Ruapehu Region. Working in partnership together for a number of years, the group has delivered a number of different courses introducing tamariki of shareholders to farming. In a bold move, Te Āti Hau Trust agreed to promote agricultural training in partnership with Land Based Training based on AWHI land in 2010. The Awhiwhenua course was born and is based at Ngā Mōkai Marae. Toni Waho was the main driver of this and his vision was to utilise the facilities at Ngā Mōkai and welcome tamariki and whānau back to the land. 12
The course has been successful and now is moving to a residential phase with a smaller number of 6 students living on Te Pā Station in purpose-built accommodation. Land Based Training is a Whanganuibased provider with a long history in the area. It was incorporated in 1996 and has a number of farm training schools throughout the North Island in conjunction with different Māori farming objectives. Te Rua o Te Moko, a training farm and multi-owned dairy farm in South Taranaki was the winner of the Ahu Whenua Trophy in 2014. Otiwhiti Station has been a training school for the past 10 years and has successfully trained close to 100 students. Land Based Training has also offered safety training for staff on the Incorporation farms with quad
bikes, ATVs, computers, first aid and a number of other subjects being delivered. The head of Land Based Training, Rob Gollan, works closely with the AWHI CEO and a number of board members (which over time have included Whatarangi Murphy-Peehi, Toni Waho and Don Robinson) to manage the strategic direction of the course. Derek Priest, the tutor, travels up to the farm weekly and delivers theory unit standards to the students as well as signing off practical assessments. Derek is well respected and a great tutor to the boys and girls that are part of the course. Up until 2016, Hikoi Te Riaki had been the field officer and had done a great job in developing the course in its success within the district.
Hikoi moved on and was replaced by Whetu-Marama Mareikura in 2016. The course has featured on Country Calendar and was well-received by the audience for the positive demonstration and reinforcement of Māori training their own to work on their own whenua. The programme was so successful that it was selected to be in the 50-year celebration of Country Calendar. The tamariki are trained in all aspects of farming from fencing, safety, stock handling, crutching, chemicals and bookwork so they can contribute positively to the industry. A large number of the students have gone on and are now successful employees both on Ātihau land and also in farms within the district. Shaquille McDonnell is one such student, working for Brian Thompson on Tohunga Station and is presently
completing a NZ Certificate L4 in sheep. He is in his third year as a student under Awhiwhenua and one that Derek believes would make a great candidate for entry into the Ahuwhenua Māori Young Farmer of the Year competition in 2017. The course is jointly funded by Land Based Training, Te Āti Hau Trust and the Ātihau Whanganui Incorporation in a model where all parties contribute towards the outcomes of the course. This is viewed by TEC and NZQA as an exemplar model of a community working for the best outcome of that community and its people. Outcomes from the course have been outstanding and show the benefits of Mātauranga Māori. Having tamariki taught on marae, in an environment they are comfortable with, by people they are comfortable with helps them to achieve learning outcomes that might be harder to achieve elsewhere.
Not only do the tamariki learn agriculture but they are involved in cultural activities, supporting the community and supporting the Incorporation. They have helped at the Whanganui River settlement, the Ātihau AGMs, cutting firewood for kaumātua and maintenance on the marae within the wider Ngāti Rangi area. Toni Waho says, “It was a vision of our ancestors that the Ātihau lands would provide a means by which to sustain our people. Training our youngsters to care for the land is essential. E mihi ana – I acknowledge all involved.” AWHI is proud of the work that has been achieved with Land Based Training and the progression that Awhiwhenua has made over the last six years. We are excited about the move towards a residential program and the possibilities that this provides to students.
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Ä€tihau-Whanganui Incorporation CEO REPORT
Over the last 12 months, AWHI
of $15,000 and $85,000 respectfully
has made great progress towards
which helped fund some of the repair
achieving our strategic goals. The
work.
diversification strategy took another leap forward and made a significant difference to the financial result. Good progress has been made in the implementation of our value strategy. We successfully instigated projects focused on the professional development of staff and making the workplace safer. All of this without losing focus on the core business of farming. The following describes this year’s activities in detail.
lambs born decreased only slightly to 107,182 lambs. This equated to an overall lambing percentage of 129% (2015:127%) for the year indicating that our focus on improving per head performance is working. During the season 82,912 seasonal lambs (2015: 81,464) and 3438 winter lambs were sold off the property. AWHI sold 60,652 lambs directly to the works at 17.4 kg carcass weight (CW) (2015:
OPERATIONS REPORT
16.8 CW). Because of the extended
Climate
and a move to protect breeding stock,
dry through summer and into autumn
Late winter was fairly typical of
a larger number of store lambs were
previous seasons for both rainfall and
sold off the property.
temperature. Spring, summer and early autumn were drier and hotter than normal, with farms receiving only 65% of normal rainfall in the period from September through to late May.
Fixed pricing agreements were entered into with our lamb processors which limited AWHI’s exposure to price reductions over summer. Despite this, poorer market prices resulted in an
Soil moisture levels restricted pasture
average lamb price of $85.13.
growth and production from December
A total of 3,893 beef calves were born
until late May when rain brought some respite. This was followed by a warm early winter allowing the farms to recover slightly after a fairly trying period. Dry stock The dry stock farms spent long periods of the year recovering from damage sustained during the June 2015 storms. These storms took out a number of fences, caused stock losses and forced some farms to set stock
14
Despite these challenges, total
across AWHI farms, slightly down on previous years due to changes in breeding cow numbers. A focus on finishing steers faster resulted in an increase in prime steers sales to 2,434 steers relative to 1,820 the previous year. These were sold along with 1,104 prime heifers. An earlier cattle kill led to an improvement in the price received for prime steers, increasing from an average price of $1,566 in 2015 to $1,693 per head.
early to prevent further losses. AWHI
During the year, capital stock numbers
appreciated the support of Whanganui
were decreased by 4,000 ewes and
District Council and the Ruapehu
700 breeding cows. These changes
District Council who provided a grant
have allowed the incorporation to
ToitĹŤ Te Whenua
Ä€tihau-Whanganui Incorporation CEO REPORT
successfully winter stock without using
218,689 Kg MS) was achieved on the
the feedlot in Bulls and as part of a
AWHI dairy unit. This was achieved by
continued focus on improving per head
making sure pasture covers and cow
performance. Our goal is to do more
condition score targets were achieved
with less.
at calving. Cow numbers were reduced
Breeding properties spent time throughout the year repairing damage that occurred during the June storms. This work was focused on repairing
to place a greater focus on production per cow. An earlier sowing date of summer crops helped carry strong spring production on into summer.
fences and tracks damaged by slips.
During the year work was completed
At the same time, a limited amount
on the water scheme to ensure that
of development work was completed
cows always have access to fresh
focusing on fencing. Looking forward,
water. At the same time, new laneways
a development plan has been
were built to reduce lameness and
completed for each property which
improve access to paddocks.
outlines the work required to fully develop the farm. Plans are in place to achieve this fully developed state over the next 5 to 10 years. Dairy For the second year in a row, record production of 247,172 kg MS (2015:
Changes have been made to reduce the cost of operating the dairy farm. These include wintering more cows
AWHI Dairy Production (kg MS) 250,000 225,000
in Ohakune and installing an in-
200,000
shed feeding system to reduce feed
175,000
wastage and feeding costs. Whilst the final Fonterra pay-out
150,000 2014 2015 2016
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Ātihau-Whanganui Incorporation CEO REPORT
Sources of Gross Operating Profit (%) 100%
were placed on Te Pā and Tawanui.
for further bee hives with a further 370
75%
A second beekeeper was recruited
to be purchased in the spring of 2017.
in February after working casually
50%
for AWHI. 13.8 tonnes of honey was
25%
harvested successfully from hives owned and operated by AWHI for the
0% 2014
2015 Apiary
2016 Farming
declined to $3.90 per kg MS during the season, management took the opportunity offered to lock in a guaranteed milk price in December for a small proportion of milk at $4.60kg MS.
Watson and Son continue to place hives on those sites not managed by AWHI. From these sites 67 tonnes of honey was harvested. Total honey production was down slightly on the previous year to just under 80 tonnes of honey whilst the average value per
Honey
kg increased to just under $50 per kg.
Honey continues to be a growing
Gross profit from Apiary was $1.3
part of the AWHI business. An Apiary
million, a $787 thousand increase on
Manager was recruited during the year with experience managing 2,500 hives. At the same time AWHI was able to purchase and relocate 400 hives out of the South Island. These hives 16
first time. An exciting time for us.
the previous year. In the 2016 year, apiary activities contributed 24% to total gross farm profit, compared to 9% in 2015. During the year contracts were signed
Forestry and Carbon In total, 120,000 New Zealand Units (NZU’s) were sold during the year at an average price of $8.60 per unit. A government entitlement was not received this year due to a sampling error which will be rectified in the next financial year. AWHI successfully reached agreement with Earnslaw One regarding historic valuations of the Winstone forest reported in the 2015 annual report. As a result of this a payment of historic rent arrears was made to AWHI. Investments During the year the Papahaua Forest joint venture was revalued to $1.6 million (AWHI’s half share). No major work was completed on the JV forest.
Ātihau-Whanganui Incorporation CEO REPORT Development work continued at
committed and optimistic about the
Te Hou during the year. Ground
future of Te Hou and its ability to
contouring was completed on the dairy
add further diversification to AWHI’s
farm and irrigation installed both on
business.
land purchased in the 2015 year and in areas not reached by centre pivots.
PEOPLE
A concrete silage pad was installed
Health and Safety
to reduce silage wastage. On the dry
AWHI is committed to improving
stock unit mature pine plantations were harvested, ground contoured and a further three centre-pivot irrigators installed. Milk production was up on the previous year with 415,875 kg MS
the health and safety of all workers, visitors and stakeholders. As part of this, a review of health and safety management was completed during the year which led to changes to AWHI’s health and safety polices and
achieved (2016: 376,612 kg MS)
management systems.
assisted by the near fully operational
A handbook was created for all staff
irrigation scheme. Production on the
to explain AWHI’s policies, biggest
if a motorbike or side-by-side tips over. Following a successful trial these devices will be rolled out to all farms
dry stock unit is still limited by the lack
hazards and emergency procedures.
during 2017.
of irrigation, with those areas that are
This booklet will be revised during
irrigated producing significantly more
2017 with the aim of making it simpler
To ensure staff are involved in the
than those areas that are not.
and more user friendly.
The profitability of Te Hou (from both
All staff have been provided with
was established. This group meets
the dairy and cropping enterprises) is
emergency locator beacons during
bi-monthly to review incidents and
highly linked to the dairy pay-out. As
the year to be used in emergency
provide safety suggestions to the
such, we estimate Te Hou will record
situations. They were also issued with
a loss of $2.2 million (our share $750
hi vis rainwear and summer clothing.
management team.
thousand). Given the productive gains
AWHI began a trial of Farm Angel, a
experienced with irrigation we remain
device which sets off a locator beacon
management of safety, an Employee Health and Safety focus group
Staff Development In 2016, a professional development
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system created in the previous year was rolled out. This included the implementation of a performance management system (PMS) which requires managers and their teams to have at least one formal performance review during the year. This system has improved based on manager feedback, making it simpler and easier to implement. Over time and with more practice managers will be better able to provide staff with feedback both in formal and informal settings. An extension and training programme was also rolled out over the year.
second-year students with fixed term
Cost of finance was equal to $1.75
These events are focused on providing
employment to give them more time to
million, down $111 thousand on the
staff with the knowledge and skills
develop their skills.
previous year.
LAND
Total equity increased by $3.4 million
so that they can reach their potential, and to understand why we may be focusing on certain areas of the
Environmental Protection
business. Each event has a specific
AWHI continued its commitment to
focus and often starts by reviewing previous targets and ends with setting new ones. Over the year, three separate events were held and as with the PMS changes were made based on staff feedback, making sure the programme will be even better in 2017. A banded staff remuneration system
2016. Working with Horizons Regional Council, AWHI conducted predator control within 300 hectares of bush at Ohorea. This will allow juvenile kiwi the opportunity to grow big enough to defend themselves from predators before moving to other bush blocks
AWHI achieved an EBITDA $4.6 million (2015: $3.5 million) and a net operating surplus of $408 thousand (2015: -$1.8 million loss). Concluding Comments I’d like to end by thanking the team that works for AWHI. Without you none of the above would be possible - ONE FARM, ONE TEAM. AWHI is
was created during the year. This
nearby.
ensures staff from across the
Over 10 kilometres of riparian fencing
are passionate about the business and
was completed, again with support
committed to making the most of the
incorporation that are performing at similar levels in similar jobs are rewarded in the same way. The average pay in each band can also be compared to remuneration surveys to ensure that AWHI is fairly rewarding its employees relative to others in the industry. Last year the management of Awhiwhenua moved from Te Āti Hau Trust to AWHI. As part of this change the first year of the programme is now based at Te Pā Station. Four very capable and determined
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looking after the environment during
to $128 million.
from Horizons Regional Council. We also made applications to protect two large bush blocks under Ngā Whenua Rāhui at Te Pā and Tawanui. These applications are likely to be approved during 2017. Financial Result Gross farm revenue increased to $19.5 million from 18.7 million. This was the result of increases in revenue from the
lucky to have a team of people that
asset that we are responsible for. Next year with a revised business plan we will continue to focus on our people, diversification, adding value and increasing farm profitability. At the same time, we will place increased importance on the protection of the environment and on building shareholder connectivity, shareholder relevance.
sale of wool, beef and honey, offset by
We have another exciting year ahead!
small declines in sheep sales.
Nāku Nā
students started the course in 2016
As of 30 June 2016, term debt totalled
and the Awhiwhenua management
$28.9 million, equivalent to 22% of
team are very proud of these cadet
total equity. Term debt reduced by
achievements so far. Plans have been
$921 thousand as part of improved
made to establish a full residential
performance and with the sale of some
programme in 2017 and to provide
capital stock.
Andrew Beijeman CEO
ĀTIHAU-WHANGANUI INCORPORATION Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 FINANCIAL HEALTH
The long term prosperity of AWHI is dependent on the organisation being managed effectively which is why the board elections are critical to making sure the best people with diverse skills represent the incorporation. The board you elect is responsible for the governance of the incorporation which includes making sure it remains in good health. To maintain good health the board has developed rules, relationships, policies and procedures that everyone has to follow including the board itself. Examples of these are: - Having a business plan and reviewing this on a regular basis - Completing financial forecasts each year and measuring the incorporations performance against it each month. - Having a treasury policy which determines things like how much risk can be carried with interest rates or how much debt the organisation can have. The board has developed a new risk management framework that will be monitored monthly which highlights any opportunities and risks facing the organisation. By having these restrictions, it limits the amount of risk the organisation is able or prepared to take and in fact brings more certainty to the performance of the incorporation. This therefore enables AWHI to be in a stronger position when making key decisions for the organisation. So is AWHI in good financial health? When considering if a business is in good health you need to look at the fundamentals which are things like Income Statement, Balance Sheet and Cashflow. Income Statement – The Income Statement for the past 2 years has shown a good surplus once you remove the amortisation that relates to capital expenditure incurred a number of years ago. Balance Sheet – The balance sheet for the incorporation would be considered to be in a strong position with debt to equity levels of 22% which is a lot lower than the industry average. The incorporation has a policy to limit the amount of debt to 30% which if the debt was that high the incorporation would still be considered to be in a strong position. Cashflow – The cash surplus from operating activities has been strong for the past couple of years and has allowed the board to invest approximately $3million dollars over the past 2 years and also continue to make shareholder distributions without borrowing any additional funds. These investments which include honey and the Te Hou partnership have been made as part of a strategy to diversify and strengthen the incorporations future income streams and also improve the production of the current farming operations. When you combine the key fundamental above the incorporation is in a strong position and with further investment can become more diversified and efficient resulting in a stronger and stable business that will ensure the current and future shareholders will continue to prosper.
Hilton Joll Partner Deloitte Limited (as Trustee for the Deloitte Trading Trust) 19
Ä€tihau-Whanganui Incorporation SUMMARY OF KEY FINANCIAL INFORMATION For the Year Ended 30 June 2016
2016 $,000
2015 $,000
19,527
18,728
(19,119)
(20,577)
408
(1,849)
4,611
3,527
Cost of Finance
(1,778)
(1,887)
Depreciation & loss on sale
(2,425)
(3,489)
Closing Equity
128,319
124,934
Total BNZ Debt
(28,891)
(29,813)
(2,067)
(2,067)
(30,958)
(31,880)
1,312
1,848
Gross Revenue Total Expenses Net Surplus / (Deficit) before tax
EBITDA
Te Hou Deferred Contribution Term Liabilities excl unclaimed Divs Capital Expenditure (incl Development)
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169%
13%
34%
Apiary Revenue
Milk Solids Production
Prime Steer Sales
Gross revenue from apiary $1.5M
Record Production of 247,172Kg
Increase prime steer sales to 2,434
EBITDA
Gross Farm Turnover
Net Farm Income
Farm Equity
2016
2016
2016
$4.6M
$19.5M
$5.7M
2016
$128.3M
2015 2015
$3.5M
2015
$18.7M
$5.9M
2015
$124.9M
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Te Āti Hau Trust CHAIRPERSON'S REPORT would not be surprising for grant
TRACKING PROGRESS
applications related to kaumātua
In 2016, general and education grants continue to reflect the wideranging interests, activities and needs of our shareholders – their whānau, kaumātua, tamariki and mokopuna. The approval process is usually
health and well-being to rise as the baby boomer generation move closer toward retirement. Alongside these areas of interest, the Trust is forecasting more applications for
straightforward for most applications
marae initiatives and related costs in
when they are thoughtfully completed
future years.
with supporting evidence. The Trust follows application trends and notes the benefit for recipients based on their reports and feedback. It is always
Te Āti Hau Trust has reviewed and refined grant policies for marae assistance and kaumātua health and well-being. These policies will be
considerate and appreciated when recipients acknowledge their grants by letting the Trust know about their progress and achievements.
included on the grant application form and posted on the AWHI website. The Trust also revised administrative processes and procedures for
Whereas education grants are expected to increase, in part due to a youthful population, the Trust has also noticed that more applications are being submitted to assist kaumātua with social gatherings, pāhake sports events and ‘quality of life’ needs such as mobility, hearing loss, major dental
receiving, assessing and responding to grant applications. Importantly, office staff regularly keep the Trust informed about the receipt of applications and any requests that may require more attention before an application is completed.
work, poor eyesight and warmth. It In 2016, the Trust approved education grants for 277 recipients. EDUCATION GRANT RECIPIENTS 2016
Agriculture 1%
Overseas 3%
Post Graduate 5% High Performance 1%
Tertiary General 47%
Secondary 26%
PHD 0% Medical 17%
22
Toitū Te Tangata
Te Āti Hau Trust CHAIRPERSON'S REPORT The Trust approved general grants for 32 recipients in 2016. GENERAL GRANT DISTRIBUTION 2016
Culture 22%
Marae 3%
Sport & Art 75%
In summary, $28,445 was distributed for general grants and $200,800 was distributed for education grants. The total value of grants approved and distributed in 2016 was $229,245. EDUCATION GRANT DISTRIBUTION 2016
GENERAL GRANT RECIPIENTS 2016 Marae 9%
Overseas 10%
Sport & Art 40%
Tertiary General 44%
PHD 2% Agriculture 3% Post Graduate 10% High Performance 2% Secondary 9% Culture 51%
Medical 20%
TE ĀTI HAU TRUST OPERATIONS 2015/16 Trust Activity 2016
Budget
30 June
Total Trust Income
400,000
380,103
Tribal Purposes grant from AWHI and a small amount of interest. The Trust draws on the grant from AWHI only when it requires funds for payment of grants and does not hold investments Administration Expenses
50,000
81,784
The Trust has revised its grants policies, processes and procedures. This included revision of arrangements around all data collection and the application guidelines. Increased cost particularly related to the follow-up of incomplete grant applications. Grant Administrator Expenses
10,000
3,003
Te Āti Hau Trust revamped all its policies and procedures which resulted in dispensing of the need for a grants administrator. This task is carried out within the AWHI office and included in administration expenses.
23
Te Āti Hau Trust CHAIRPERSON'S REPORT TE ĀTI HAU TRUST OPERATIONS 2015/16 (CONTINUED) Trust Activity 2016 Tangihanga Koha
Budget
30 June
20,000
12,600
Tangihanga cost reduced in 2015/16 however ensuring koha for a tent for grieving whānau remains a priority for Te Ati Hau Trust. Database
20,000
0
It was decided to reassess the grant administration database needs. Awhiwhenua Training Project
0
39
Awhiwhenua training project is now administered by Ātihau Whanganui Incorporation. This is the final expenditure to be incurred by the Trust. Grants
280,000
229,245
Grants are expected to increase in 2016/17 as a result of the work completed with grants policies. Net Surplus Funds Brought forward Funds Carried forward
Nil 20,000 20,000
53,432 19,695 73,127
TE ĀTI HAU TRUST BUDGET FORECAST 2016-2017 % Agreed AWHI Budget
Totals
Distribution Areas
% Grants Allocation
Education Grants
70
187,400
General Grants
30
84,600
Total Grants Fund
100
78
272,000
Board
12,000
Secretariat
56,000
Operations
10,000
Total Costs
22
78,000
Total
100
350,000
SPECIAL SCHOLARSHIPS
The Trust’s recommendations to the AWHI Board for the following scholarships are accepted: Ohotū
$2,000 per year for two years
Kereopa Kendrix-Woon Joshua Firmin Two scholarships to be awarded
Robin Murphy – Peehi Ātihau Whanganui Ravensdown Scholarship
24
$8,000 per year for two years
Roy Hoerara To be awarded
Te Āti Hau Trust CHAIRPERSON'S REPORT LOOKING BACK 2010 - 2016 Since 2009, the Trust has assisted shareholders and their whānau,
Sources of Gross Operating Profit (%)
kaumātua, tamariki and mokopuna
180,000
as well as initiatives for marae,
150,000
tangihanga and hui. The Trust has
120,000
compiled this data information on grant distribution and grant recipients
Education Grants
90,000
from 2010 to 2016. Although the
60,000
assistance provided over these years
30,000
for education and general grants has
General Grants
210,000
0
been modest in most cases, the Trust also distributed reasonable amounts for
2010
2011
2012
2013
2014
2015
2016
worthy causes and endeavours such as the home insulation project.
Grant distribution for education
for each year from 2014-2016. The
since 2010 to 2016 whilst education
purposes increased from 2011-
number of recipients for general grants
grants have stayed above 250
2014 and has since levelled out. In
fluctuated from one year to the next
recipients in 2014-2016.
comparison, general grants peaked
Total Number of Grant Recipients 2010-2016
in 2013 with a lower distribution in 2016 which was on a par with the distribution in 2010. This was unexpected although the Trust’s
300
review and revision of two general
250
grant policies did cause a minor delay with the approvals process for a small number of applications which have since been considered. The total number of grant recipients increased from 2010-2012 and levelled out with over 300 total grant recipients
General Grants
350
Education Grants
200 150 100 50 0
2010
2011
2012
2013
2014
2015
2016
Feedback and reports from recipients
fair to say the Trust can be expected to
In completing this AGM report for Te Āti
acknowledge the Trust’s value to
receive grant applications to support
Hau Trust, here are a few samples of
those who receive grants. In the past
those in need and worthy endeavours.
general and education grant recipients’
six years, the opportunity to access
At the same time, the Trust is open
reports and feedback about their
education and general grants has been
to the possibility of working alongside
enterprise and progress.
appreciated by the tamariki, mokopuna
other organisations whose purposes
and whānau of shareholders. With the
and outlook are well-suited to the Trust.
positive responses to date, it would be
25
Te Āti Hau Trust CHAIRPERSON'S REPORT
“
Please accept my utmost thanks for the recent financial support you have given me to assist in
“
thought I would write to you and share a synopsis
my transition to living and working at the United
of my journey thus far, so you can appreciate how
Nations in New York. I have been very fortunate to
significant your grant has been. I officially began
have had the support of Te Āti Hau Trust throughout
the EMBA programme here at Shidler College of
my journey at law school, and I am positively
Business at the University of Hawaii. The cost for
overwhelmed and grateful for the support you have
this course is large and the support of the Platinum
provided this time as I take my first steps into my
Triangle Business Award through Fulbright helps but
career.
leaves a fair amount to still [be] found. Your grant
”
has assisted with the purchase of my books and
Keepa Hipango - General Grant Recipient – Internship at NZs Permanent Mission to the United Nations
“
Ngā mihi ki a koutou te poari o Te Āti Hau. I
travel to residency. I’m so grateful for your support and will remember your generosity through my
”
journey.
I am pleased to advise you that you have been
Sarah Reo - Education Grant Recipient – Business Studies Program at Overseas University
awarded a grade of A- (mark: 76) for the paper DSOE592 Dissertation for which you are enrolled in 2015. I believe this completes the requirements of your Masters of Educational Leadership degree, which I have recommended be awarded with first
”
class honours.
University Letter to Education Grant Recipient David McLeod – Post-Graduate High Performance
“
20 years ago the decision was made to plan for the restoration of the wharepuni and marae of Kohanga Rehua. The rebuild commenced in 2014 and since then the structural work has been completed with raupo and tōtara from Ātihau Incorporation lands. The aim of this project is to rededicate the marae for
Below Left: Te Kohanga Rehua October 2013 & April 2016. Bottom Left and Centre: Anton McKay discussing the Kaiwhaiki water project. Kaumātua, John Maihi, blessing the commencement of the project with karakia.
26
”
the benefit of all Whanganui descendants.
General Grant Recipient – Te Kohanga Rehua Restoration Project
“
CACTUS is a well-established programme with a proven track record of developing students’ physical
Persistence has paid off for the residents of the small Whanganui River settlement of Kaiwhaiki
and mental well-being, assisting local youth and
with a start this week on a major upgrade of the
their personal development and reducing crime.
community's water supply. At the moment two
Ruapehu College are in their second year with 30
water tanks on a hill above the houses and marae
students aged between 14 and 18 years old. Most
about 20km north of Whanganui supply the families
of these students are the tamariki and mokopuna
but the project will see another six tanks put in place
of Ātihau Incorporation shareholders. With the
along with a filtration plant. The $300,000 project
support of the local police, and the army the college
will give greater surety of water supply for the 40
has encouraged students and their whānau from
families who live at Kaiwhaiki. The water supply has
Ohakune, Raetihi and Waiouru to participate.
been serving the marae for about 60 years but was
General Grant Recipient – CACTUS Student Leadership Development Programme
“
“
”
in desperate need of an upgrade. Anton McKay, who is project managing the job for the community, said Kaiwhaiki was the largest living marae on the
My appreciation to the selection committee for their continued support of my tertiary education. I am making significant strides toward completing my honours degree. At this time, my research is underway. I am ultimately targeting a career in the film and media industry. I hope to further my
”
academic studies abroad in the United States.
Ngarangi Haerewa - Education Grant Recipient – Film and Media Career Aspirations
Below Right: Students from Ruapehu College work together on a teamwork challenge as part of the CACTUS Student Leadership Development Programme.
river "so this project is a major upgrade of our water system". "A new filtration system will feed from the spring and link with the existing water line to the houses on the marae. The next stage will be
”
replacing that existing pipeline," he said.
General Grant Recipient - Kaiwhaiki Marae Residents Community Project
Nāku iti nei,
Dr Brendon Te Tiwha Puketapu Chair, Te Āti Hau Trust
27
Te Āti Hau Trust GENERAL GRANTS LIST
Sport, Art and Travel $
Recipients
General Grant Categories
Te Taikura o Te Awa Tupua
Returned Grant
Akapita, Caleb
Representing school at National rowing champs - Maadi Cup
100
Andrews, Shannah
Representing school at National rowing champs - Maadi Cup
100
Broughton, Chavez
Taranaki U17 mixed touch Rep
100
Joseph, Anastasia
Secondary School Waka Ama Nationals
100
Macdonald, Mikaylah
Secondary School Waka Ama Nationals
100
Millar, Mitchell
Rep Whanganui in U21 touch rugby at National champs
100
Millar-Potaka, Mahinarangi
Rep Whanganui in U21 touch rugby at National champs
100
Rapana-Tuirirangi, Matthew
Secondary School Waka Ama Nationals
100
Thompson, Donovan
Representing school at National rowing champs - Maadi Cup
100
Waitai, Kororia
Secondary School Waka Ama Nationals
100
Josephs, Jean
funding to participate in weekly riding for disabled classes
345
Peke-Mason, Soraya
Attendance participation Maori Legal business and governance forum
350
Pickering, Hine-aa-rangi
Music - invited to take youth music to China
400
Downs, Jayden
NZ Junior Box Champs Russia
500
Dyden, Opetini
Representing NZ - Athletics
500
Ihakara, Tereana
Assist family in Waka Ama world champs
500
Mere Te Aroha Sports Club
Netball Equipment
500
Pointon, Chantelle Kay
White sox in Canada
500
St Vincent’s Maori Club
Uniforms
500
Te Kani, Kahu
NZ Junior Volleyball Canberra
500
Hone, Lauren & Pirihira Tamehana
Rep Whanganui in Waka Ama World Champs
1,000
Wilson-Leahy, Te Puawai
Global Youth Ambassador Programme to Uganda
1,000
Kumeroa, Bennett
Olympic weightlifting
1,500
Ruapehu College
Support and develop youth CACTUS programme
2,500
-150
11,445
28
Te Āti Hau Trust GENERAL GRANTS LIST
Cultural $
Recipients
General Grant Categories
Raetihi School BOT
Culture Festival
500
Ruapehu Maori Catholic Club
Hui Aranga Travel Costs
500
Te Roopu o Parikino
Hui Aranga Travel Costs
500
Pakaitore
Supply food for three day hui
1,000
Te Patu, Adrian
World Federation of Public Health, General Assembly in Geneva
1,000
Te Roopu Ote Whitu Maori Culture Club
Hui Aranga Travel Costs
1,000
Hui Aranga Management Committee
Easter Catholic gathering in Whanganui
10,000 14,500
Marae $
Recipients
General Grant Categories
Chris Kumeroa
Whanganui Hunting & Food festival - Parikino Marae
2,500 2,500
Net General Grants
28,445
29
Te Āti Hau Trust EDUCATION GRANTS LIST Tertiary - General
30
$
Recipients
Qualification
Patea, Raina
Contemporary Music Performance
300
Stott, Donna
Commerce
400
Brooks, Justin
Majoring Physics
500
Pewhairangi, Rerekohu
Sports & Exercise
500
Haenga, Awhina
Te Tohu Paetahi Nga Poutaka
600
Hurn, Joshua
Physical Education
600
McGregor, Jacob
Arts
600
Smith, Nemesis
Administration & Computing
600
Akapita, Ngapera
Bachelor of Applied Social Work
700
Akapita, Tuhirangi
Cert in Sports and Recreation
700
Allen, Camilla
NZ Diploma in Business
700
Apou, Freeman
Science / Arts
700
Babbington, Sasha-Dee
Bachelor of Business Management/Bachelor of law
700
Baker, Paul
Cert in Cookery Level 4
700
Baker, Quaylen
Cert in Automotive Workshop and Repair
700
Baldwin, Michael
Drivers Licence for Truck Class 2
700
Balsley, Te Pohe
Business Administration Level 4
700
Bell, Madeleine
Cojoint Bachelor of Commerce and Arts
700
Blackett, Jamie
Certificate in Introduction to Study
700
Bristol, Doreen
Travel & Tourism
700
Brooks, Alexandra
Bachelor of Teaching (Primary)
700
Brooks, Temaia
Bachelor of Media and Creative Technologies
700
Buchanan, Ayalla
Bachelor of Applied Arts
700
Chadwick, David
National Cert in Carpentry
700
Dobbyn, Gaylene
Graduate Diploma in Arts Psychology
700
Durston, Courtenay
Bachelor of Social Science Psychology
700
Durston, Madison
Bachelor of Teaching and Arts
700
Duxfield, Ella
Bachelor of Applied Science Sports and Exercise Nutrition
700
Francis, Melanie
Diploma in Business Studies
700
Goodhall, Liam
Certificate in Exercise and Sport Performance
700
Graham-Ratana, Karaemea
Bachelor of Health Science
700
Haami, Pita
Nothing specified
700
Haami, Kararaina
Awhiwhenua Land Based Training School
700
Te Āti Hau Trust EDUCATION GRANTS LIST Tertiary - General $
Recipients
Qualification
Haami-Heron, Monique
International Diploma in Hotel Management
700
Haenga, Awhina
Bachelor of Social Work
700
Hallett, Paul
NZ Diploma in Forest Management
700
Hammond, Isabella
Bachelor of Law and Politics
700
Harrison, Tessa
Poutuarongo Toiora Whanau Y2
700
Healey, Natalie
Law
700
Hina, Te Oranga
Te Tohu Paetahi (BA)
700
Hipango, Roimata
Bachelor of Architectural Studies
700
Houpapa, Sonny
Bachelor of Creative Enterprises
700
Hourigan, Conor
Electrical Engineering Apprenticeship
700
Hunia, Metapere
Bachelor of Management Studies
700
Huwyler-Hunia, Kaylin
Bachelor of Commerce and PE
700
Jonas, Nikayla
Bachelor of Education and Pacific Studies
700
Jones, Blade
Heke Reo
700
Kahu-Ratana, Robert
Plumbing/Gasfitting apprenticeship
700
Kawau, Ngahuia
Poutuarongo Whare Tapere Literary Performing Arts
700
Kwocksun, Lonnie
Cert in MIG & TIG Welding
700
Lindsay, Nova
Te Tohu Paetahi Nga Poutoko Whakarara Oranga
700
Mair, Te Paraihe
Certificate of Ag-Beef and Sheep
700
Maniapoto, Eparaima
Diploma in Contemporary Music Performance MUSIC
700
Mareikura, Richard
Certificate in Fitness
700
Mareikura, Taura
Cert Exercise Sport Performance Level 4
700
Marriner, Cheryl
Bachelor of Applied Science (Environmental)
700
Marshall, Sharon
Bachelor of Social Work
700
Marshall-Nyman, Kealyn
BA/Bteach, Economics & Te Reo MÄ ori
700
Mason, Te Waiata
Bachelor of Literary Performing Arts
700
Mason-Loveridge, Deane
Bachelor of Psychology and Philosophy
700
Matthews, Anaru
Bachelor of Law
700
McCool, Toni
Cert in Social Services Level 4
700
McKechnie, Arthur
Bachelor of Commerce
700
Metekingi, Marara
Poutuarongo Kawa Oranga
700
Miles, Simon
Nothing specified
700
Miller, Joel Philip
Certificate in Information Technology
700
31
Te Āti Hau Trust EDUCATION GRANTS LIST Tertiary - General
32
$
Recipients
Qualification
Mitchell, Sandy
NZ Cert in Animal Care
700
Nahona, Tamahau
Automotive Engineering
700
Ngataki, Lisa Marie
Diploma in Beauty Level 5
700
O'Neil, Charis
Social Work
700
O'Neil-Cockburn, Olivia
Diploma of Marine Studies/Bachelor of Science
700
Osborne, Stephanie
Statistical Analysis
700
Paewai, Trina
Bachelor of Business Studies
700
Pahl, Tracy
Health Science
700
Pakai, Wipaki
Awhiwhenua Land Based Training School
700
Parkes, Grace
Bachelor of Law and Arts majoring in Maori
700
Patea, Anthony
Poutuarongo Whare Tapere
700
Peeti, Teresa
National Cert in Cookery Level 4
700
Perkins-Gordon, Dayne
Bachelor of Computing and Maths Sciences
700
Poutini, Valencia
Cert in Travel, Cultural Tourism & IATA fares & ticketing
700
Pukutohe, Klay
Bachelor of Sport and Recreation
700
Puna, Allandria
Bachelor of Commerce - Accounting and Māori
700
Ranginui-Thompson, Marsh
Diploma in Furniture Making
700
Ratana, Manaia
Bachelor of Literary Performing Arts
700
Reihana, Rachel
Bachelor of Social Sciences
700
Richards, Jhanelle
Bachelor of Nursing
700
Rossiter, Len-Juane
Sport & Leisure
700
Rossiter, Len-Juane
Diploma in Applied Sport & Coaching Management
700
Rowe, Kyarni
Bachelor of Arts Te Reo Māori and Māori Studies
700
Rowe, Tamahau
Bachelor of Sport and Leisure
700
Ruta, Cheyenne
Bachelor of Social Practice
700
Saywell, Arianna
Diploma - Legal Executive
700
Selwyn, Karli
Bachelor of Health Science (Oral Health)
700
Smallman, Edward
NZ Diploma in Cookery Level 5
700
Stanley, Te Rangimarie
Poutuarongo Whare Tapere Literary Performing Arts
700
Stewart, Michael
Bachelor of Engineering (Honours)
700
Ta'ala, Ahlia-Mei
Bachelor of Architectural Studies
700
Ta'ala, Teuila
Bachelor of Design
700
Te Āti Hau Trust EDUCATION GRANTS LIST Tertiary - General $
Recipients
Qualification
Tahuparae, Nga Remu Huia
Bachelor of Science and Geogrpahy
700
Tamarua-Toa, Caleb
Cert of Applied Technology
700
Tamehana, Tamati
National Cert in Carpentry
700
Tapa, Ellie
Bachelor of Commerce
700
Tapa, Maggie
Bachelor of Science
700
Taura, Patricia
BA Te Reo Māori & Tikanga Māori
700
Taurima, Kendyl
Bachelor of Psychology
700
Taurima, Sarita
Bachelor of Communications
700
Taylor-Heke, Pita
Nothing specified
700
Te Ahuru-Millar, Sasha
Commerce
700
Te Ahuru-Millar, Courtenay
Cert in Foundation Education
700
Te Patu, Grant
Bachelor of Bicultural Social Work
700
Te Waaka, Pinto
Diploma in Applied Animation
700
Teki, Mikaere
Health Science Foundation Studies
700
Thompson, Jaedyn
Bachelor of Science
700
Toru, Ariki
Cert in Transportation
700
Treanor, Kirsti
Te Aho Tatairangi
700
Tuirirangi-Rapana, Pheenyx
Cert of Fitness
700
Twomey, Shaia
Te Aho Tatairangi
700
Tyson, Ashlee
Bachelor of Commerce and Law
700
Vercoe, Haukapuanui
Bachelor of Engineering (Honours)
700
Vette, Dinah
Masters Public Management
700
Wakefield, Arama
Bachelor of Commerce Accouting and Law
700
Wakefield, Te Orunui Jesse
National Certificate in Welding Level 3
700
Wallace, Chontelle
Poutuarongo Whare Tapere
700
Wallace, Te Rua
Diploma in Arts and Design
700
Wardlaw, Jaymie Kate
Bachelor of Law
700
Whanarere, Ina Ginette
Te Pou Tahu Whakaakoranga
700
Wiari, Penelope
Bachelor of Bicultural Social Work
700
Wilson, Sarah
Bachelor of Science in Psychology and Criminology
700
Zagrobelna, Jessica
Level 3 Dairy
700 Net Tertiary General Grants
88,800
33
Te Āti Hau Trust EDUCATION GRANTS LIST Medical
34
$
Recipients
Qualification
Yandall, Jolene
Postgrad Diploma in Primary Health Care
350
Matthews, Annalise
Nursing
600
Barrett, Alicia
Bachelor of Nursing
700
Brownbridge, Matthew
Bachelor of Medicine and Surgery
700
Butler, Karen
Bachelor of Nursing
700
Dixon, Emily-Louise
Certificate in Health Science Level 4
700
Enright, Claire
Bachelor of Midwifery
700
Farrell, Samantha
Bachelor of Health Science (Physiotherapy)
700
Fonotae, Leilani
Bachelor of Nursing
700
Foster, Gypsy
Bachelor of Nursing
700
Hamilton, Jessica
Bachelor of Nursing
700
Hartley, Arihia
Bachelor of Nursing
700
Hohepa, Marion
Bachelor of Nursing
700
Jackson, Ngawai
Bachelor of Nursing
700
Kopua-Butler, Kahu
Bachelor of Applied Science (Medical Imaging)
700
Kumeroa, Alexandra
Bachelor of Nursing
700
Lambert, Brittany
Bachelor of Midwifery
700
Mangos, Brody
Bachelor of Health Science in Paramedicine
700
McKechnie, Hemi
Bachelor of Pharmacy
700
Ngatai-Broughton, Tara
Bachelor of Nursing
700
Nicoll, Fiona
Health Sciences First Year (Bsc)
700
Ponga, Tahimanawa
Bachelor of Nursing
700
Ranginui-Church, Julie
Nursing
700
Ratana, Darinee
Bachelor of Nursing
700
Te Āti Hau Trust EDUCATION GRANTS LIST Medical $
Recipients
Qualification
Ryan, Ihaia
Medicine/Surgery
700
Sharma, Alayna
Bachelor of Nursing
700
Suliafu, Temaia
Bachelor of Nursing
700
Tahana-Tyson, Kayla
Bachelor of Midwifery
700
Tairi-Bartlett, Waimarama
Cert in Health Science Level 3
700
Takarangi, Lara Amy
Bachelor of Nursing
700
Taylor, Brittany
Health Sciences First Year (Bsc)
700
Turia, Tariana
Certificate in Health and Science
700
Tyson, Lorraine
Bachelor of Nursing
700
Walters, Angeline Cherokee
Health Sciences First Year (Bsc)
700
Wiari, Rangimarie
Health Sciences First Year (Bsc)
700
Wilks, Alice
Cert in Science and Health
700
Wright, Samuel
Bachelor of Applied Science (Consumer Food Science)
700
Yates, Symmone
Bachelor of Nursing
700
Brooks, Christopher
Medicine
1,200
Alexander-Paewai, Saskia
Bachelor of Health Science Physiotherapy
1,500
Brooks, Christopher A
Doctor Studying in NSW Australia
1,500
Brownbridge, Brent
Pharmacy
1,500
McFater, Hoani
Bachelor of Medicine and Surgery
1,500
Ropata, Malachi
Bachelor of Medicine and Surgery
1,500
Ryan, Ihaia
Bachelor of Medicine and Surgery
1,500
Scorringe, Katie
Bachelor of Medicine and Surgery
1,500
Teka, Frith
Post Grad Dilpoma in Health Sciences in Advanced Nursing
1,500
Tyson, Kelli-Ann
Bachelor of Nursing
1,500 Net Medical Grants
40,850
35
Te Āti Hau Trust EDUCATION GRANTS LIST Secondary Recipients
36
$
$
Recipients
Akapita, Caleb
250
Ngamoko-Joseph, Anastacia
250
Alexander, Tyra
250
Ngatoa-Wallace, Emason
250
Andrews, Shannah
250
Owens, Cortney
250
Beamsley-Varu, Jayden
250
Pari, Keilym
250
Downs, Jayden
250
Pauro-McQaude, Kaya
250
Gardiner, Manahi
250
Peke Meihana, Arama
250
Goss, Kayzia
250
Ponga, Tui
250
Goss, Suraya
250
Potaka, Hemi
250
Haenga, Kasey (2015)
250
Poutini, Ahungarangi
250
Haenga, Kasey (2016)
250
Quinn, Kwin
250
Haenga, Lakan
250
Rapana-Tuirirangi, Mathew
250
Haenga, Riley
250
Reo Rapana, Jackie
250
Hartley, Summah
250
Stevenson, Will
250
Healey-Forde, Natalia
250
Tahana-James, Keyton
250
Healey-Forde, Seona
250
Taiaroa, Moengarau
250
Hibbard, Kaiya
250
Taiaroa, Tiaho (2015)
250
Hina, Keaoni
250
Taiaroa, Tiaho (2016)
250
Hourigan, Beau
250
Takiari, Paetawa
250
Huria, Caitlin
250
Taylor, Capri
250
Kingi, Te Onemauri
250
Taylor, Kaleb-Lee
250
Kuiti, Tayla
250
Taylor-Heke, Herena
250
Kumeroa, Benet
250
Te Amo, Harmony
250
Kumeroa, Logan
250
Teki, Isaiah
250
Long, Marlon
250
Teki, Raemon
250
Luff, Dontae
250
Thompson, Donovan (2015)
250
Macdonald, Mikaylah
250
Thompson, Donovan (2016)
250
Machin-Clark, Wyllow
250
Thompson, Tiarna Juanita
250
Malcolm, Devon
250
Tuirirangi-Rapana, Epic
250
Malcolm, Jesse
250
Waitai, Ariana
250
Mansell, Te Wainui
250
Waitai, Joshua
250
Mareikura, Carson
250
Walker, Lisa
250
Mason, Iriaka Kate
250
Wanihi Wallace, Mereana
250
McCaskil, Michael
250
Whanarere, Ina
250
McCool, Kahu
250
Wiari, Haukura
250
Miller, Kiana
250
Winterburn, Shaylee
250
Mitchell, Shantala
250
Net Secondary Grants
17,750
Te Āti Hau Trust EDUCATION GRANTS LIST Other Recipients
Qualification
$
High Perfomance McGregor, Arihia
Bachelor of Social Work
1,000
Nicoll, Hamish
Bachelor of Engineering (Honours)
1,000
Rudolph, Joel
Bachelor of Arts (english and theatre)
1,000 3,000
Post Graduate Tamarua, Papatuanuku
Arts & MÄ ori Development
1,200
Gray, Kayla
Arts
1,300
Haunui, Kevin
KURA591
1,400
Gray, Elizabeth
Te Panekiretanga o Te Reo
1,500
Gray, Kayla
Postgraduate Diploma of Arts (Psychology)
1,500
Hutana-Te Aho, Sarah
Bachelor of Te Reo, Maori media and Communication
1,500
Jones, Mary
Masters of Maori & Pacific Devlopment
1,500
Miles, Cory
Masters of Sports and Leisure
1,500
Prince, Alicia
Postgraduate Diploma in Secondary Teaching
1,500
Ransfield, Ariti
Doctorate in Education
1,500
Tahuparae, James
Masters Matauranga Maoro
1,500
Williams, Ereti
BA (Social Policy) Honours - Post Grad
1,500
Williams, Tutakangahau
Masters of Indigenous Studies
1,500
Woon, Kylie
Masters in Applied Social Work
1,500 20,400
Agriculture Osborne, Johnathan
Bachelor of Agriculture
3,000
Williams, Stephanie
Agricultural Science
3,000 6,000
PHD Charlotte, Connell
Bachelor of Medicine and Surgery
3,000
Blackburn, Leila
College
2,000
Blackburn, Roimata
College
2,000
Butters, Kyle
Business Economics
2,000
Langford, Callum
Civil Engineering
2,000
Nagra, Kulwinder
Trade and Commerce
2,000
Reo Te Kooro, Longo
Business Administration
2,000
Terry, Tomika
Visual Communication Design
2,000
Hourigan, Paige
Business Degree
3,000
Hipango, Keepa
United Nations
4,000
Overseas
21,000
37
38
Ä€tihau-Whanganui Incorporation FINANCIAL STATEMENTS 2016
CONTENTS 40
Shareholding and Committee of Management Disclosures
41
Statement of Comprehensive Income
42
Statement of Changes in Equity
44
Balance Sheet
45
Statement of Cash Flows
46
Notes to and forming part of the Financial Statements
62
Auditors' Report
39
Ä€tihau-Whanganui Incorporation
SHAREHOLDING & COMMITTEE OF MANAGEMENT DISCLOSURES
For the Year Ended 30 June 2016 Shareholding Information
Greater than 5,000 shares Between 1,000 and 5,000 shares Between 500 and 1,000 shares Between 100 and 500 shares Between 5 and 100 shares Between 1 and 5 shares Under 1 share Totals
No. of Shareholders 12 238 305 1,436 3,905 1,507 1,166 8,569
0.15% 2.85% 3.70% 16.98% 46.06% 17.33% 12.93% 100%
No. of Shares Held
111,973.40 458,476.54 215,669.83 340,109.82 125,926.75 3,936.77 435.89 1,256,529
Committee of Management Shareholding CoM members have the following shares in the Incorporation registered in their names as at 30 Sept 2016. Che Wilson Jim Edmonds Keria Ponga Mavis Mullins (Chairperson) Te Tiwha Puketapu Toni Waho Whatarangi Murphy-Peehi
61.05 1,000.00 274.28 2,640.76
This schedule does not include shareholdings registered in the name of Trusts of which a CoM member may be a beneficiary.
Committee of Management Attendance of Meetings There were 11 monthly and 1 special meeting of the Committee during the year. Member's attendance was as follows: Che Wilson Don Robinson (Resigned 4 Dec 2015) Jim Edmonds Keria Ponga (appointed 4 Dec 2015) Mavis Mullins (Chairperson) Te Tiwha Puketapu Toni Waho Whatarangi Murphy-Peehi
Ordinary 9 3 9 5 11 11 6 9
Special 1 1 1 1 1 1
Committee of Management Remuneration Members were paid fees and travel allowances during the financial year ended 30 June 2016.
Che Wilson Don Robinson Jim Edmonds Keria Ponga Mavis Mullins (Chairperson) Te Tiwha Puketapu Toni Waho Whatarangi Murphy-Peehi
40
Fees $
25,000 18,300 25,000 12,500 45,000 25,000 25,000 25,000
Travel $ 6,200 2,307 284 6,872 1,665 1,900
Comments Fuel card provided
Vehicle provided
8.91% 36.49% 17.16% 27.07% 10.02% 0.32% 0.03% 100%
Ä€tihau-Whanganui Incorporation STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 30 June 2016 Note REVENUE Livestock
2
Milk
Actual 2016 $
Actual 2015 $
13,970,059
14,674,935
930,200
1,101,571
Wool
2,240,428
1,984,112
Apiary
1,490,563
552,704
18,631,250
18,313,322
315,691
35,108
73,483
76,872
394,593
75,394
Other gains and losses
3
Finance income
4
Rental income Other income TOTAL REVENUE
111,800
227,338
19,526,817
18,728,034
EXPENSES Farm working expenses
9,041,364
7,933,720
Personnel
3,149,924
3,158,641
2,425,314
3,488,948
Repairs and maintenance
789,027
1,236,836
Governance and shareholder expenses
559,107
553,495
Depreciation and loss on sale
5
Donations and scholarships Other operating expenses
6
TOTAL EXPENSES NET SURPLUS BEFORE FINANCE COSTS AND NON OPERATING REVALUATIONS
384,000
411,415
1,081,082
952,331
17,429,818
17,735,386
2,096,999
992,648
(1,774,741)
(1,886,784)
85,951
(693,319)
-
(262,000)
408,209
(1,849,455)
-
-
408,209
(1,849,455)
159,369
(147,112)
FINANCE COSTS Interest
REVALUATION GAINS / (LOSSES) Gain / (loss) from equity accounted investments
7
Gain / (loss) from revaluation of investment property NET SURPLUS / (DEFICIT) Income tax expense
8
NET SURPLUS / (DEFICIT) AFTER INCOME TAX OTHER COMPREHENSIVE INCOME Revaluation of Available-for Sale-Investments Revaluation of Emission Trading Units
3,509,562
1,342,884
-
(4,672,870)
TOTAL OTHER COMPREHENSIVE INCOME
3,668,931
(3,447,098)
TOTAL COMPREHENSIVE INCOME / (DEFICIT)
4,077,140
(5,326,553)
Revaluation of Property, Plant & Equipment
These statements should be read in conjunction with the accompanying notes.
41
Ä€tihau-Whanganui Incorporation STATEMENT OF CHANGES IN EQUITY For the Year Ended 30 June 2016 Capital Reserves $
BALANCE AT 1 JULY 2015
PTY Reval Reserves $
Retained Earnings $
ETU Reserve $
AFS Share Reserve $
30,098,776
72,260,903
19,679,641
2,683,094
211,466
Dividends Paid
-
-
(691,089)
-
-
Transactions with owners
-
-
(691,089)
-
-
Net Surplus after Income tax
-
-
408,209
-
-
-R evaluation of Emission Trading Units
-
-
-
3,509,562
-
- Reclassification of AFS financial assets on Sale
-
-
1,805
-
(1,805)
- Revaluation of Available-for-Sale Financial Assets
-
-
-
-
159,369
Total Comprehensive Income for the Year
-
-
410,014
3,509,562
157,564
30,098,776
72,260,903
19,398,566
6,192,656
369,030
Capital Reserves $
22,489,376
PTY Reval Reserves $
84,543,173
Retained Earnings $
ETU Reserve $
AFS Share Reserve $
-
-
21,529,095
1,340,210
358,578
7,609,400
(7,609,400)
-
-
-
-
-
753,917
-
-
30,098,776
76,933,773
22,283,013
1,340,210
358,578
Dividends Paid
-
-
(753,917)
-
-
Transactions with owners
-
-
(753,917)
-
-
Net Deficit after Income tax
-
-
(1,849,455)
-
-
- Revaluation of Property, Plant & Equipment
-
(4,672,870)
-
-
-
- Revaluation of Emission Trading Units
-
-
-
1,342,884
-
-R evaluation of Available-for-Sale Financial Assets
-
-
-
-
(147,112)
Total Comprehensive Income / (Deficit) for the Year
-
(4,672,870)
(1,849,455)
1,342,884
(147,112)
30,098,776
72,260,903
19,679,641
2,683,094
211,466
Other Comprehensive Income
BALANCE AT 30 JUNE 2016
BALANCE AT 1 JULY 2014 Restatement of reserve balances Reclass Investment Properties previously in Property, Plant & Equipment Remove Dividend Provision not approved prior year end (NZIAS37) RESTATED BALANCE AT 1 JULY 2014
-
-
-
Other Comprehensive Income
BALANCE AT 30 JUNE 2015
A description of the nature and purpose of each reserve is stated in note 27.
42
These statements should be read in conjunction with the accompanying notes.
Ä€tihau-Whanganui Incorporation STATEMENT OF CHANGES IN EQUITY (CONTINUED) For the Year Ended 30 June 2016 Retained Earnings prior to 2004
Retained Earnings after 2004
Share Valuation $
Livestock Reserve $
-
124,933,880
Dividends Paid
-
-
-
-
(691,089)
Transactions with owners
-
-
-
-
(691,089)
Net Surplus after Income tax
-
-
-
-
408,209
- Revaluation of Emission Trading Units
-
-
-
-
3,509,562
-R eclassification of AFS financial assets on Sale
-
-
-
-
-
-R evaluation of Available-for-Sale Financial Assets
-
-
-
-
159,369
Total Comprehensive Income for the Year
-
-
-
-
4,077,140
BALANCE AT 30 JUNE 2016
-
-
-
-
128,319,931
Retained Earnings prior to 2004
Retained Earnings after 2004
Share Valuation $
1,698,788
Livestock Reserve $
11,189,466
Total Equity $
130,260,432
BALANCE AT 1 JULY 2015
-
-
-
Total Equity $
Other Comprehensive Income
BALANCE AT 1 JULY 2014
10,980,338
Restatement of reserve balances
(640,709)
(10,980,338)
640,709
(1,698,788)
(11,189,466)
-
Reclass Investment Properties previously in Property, Plant & Equipment
-
-
-
-
-
Remove Dividend Provision not approved prior year end (NZIAS37)
-
-
-
-
753,917
RESTATED BALANCE AT 1 JULY 2014
-
-
-
-
131,014,350
Dividends Paid
-
-
-
-
(753,917)
Transactions with owners
-
-
-
-
(753,917)
Net Deficit after Income tax
-
-
-
-
(1,849,455)
- Revaluation of Property, Plant & Equipment
-
-
-
-
(4,672,870)
- Revaluation of Emission Trading Units
-
-
-
-
1,342,884
- Revaluation of Available-for-Sale Financial Assets
-
-
-
-
(147,112)
Total Comprehensive Income / (Deficit) for the Year
-
-
-
(5,326,553)
BALANCE AT 30 JUNE 2015
-
-
-
124,933,880
Other Comprehensive Income
-
These statements should be read in conjunction with the accompanying notes.
43
Ātihau-Whanganui Incorporation BALANCE SHEET As at 30 June 2016 Note
2016 $
2015 $
Cash and cash equivalents
140,432
814,504
Trade and other receivables
1,780,323
986,934
466,243
617,218
26,959,951
27,677,742
29,346,949
30,096,398
CURRENT ASSETS
Stock feed on hand Biological assets
9
TOTAL CURRENT ASSETS NON CURRENT ASSETS Property, Plant & Equipment
14
110,935,686
111,932,726
Investment property
10
7,871,400
7,871,400
Investments in associates and joint ventures
11
7,965,630
6,951,360
Share Investments
12
1,378,971
1,218,164
Intangibles
13
5,440,588
2,687,026
TOTAL NON CURRENT ASSETS
133,592,275
130,660,676
TOTAL ASSETS
162,939,224
160,757,074
1,087,490
1,136,664
303,999
270,089
40,000
-
257,255
211,219
-
478,485
CURRENT LIABILITIES Trade and other payables GST payable Te Āti Hau Trust Employee entitlements Provisions
15
Borrowings due within 12 months
16
TOTAL CURRENT LIABILITIES
-
8,850,000
1,688,744
10,946,457
NON CURRENT LIABILITIES Borrowings
16
28,891,208
20,962,967
Unclaimed Dividends
17
1,972,675
1,847,104
Te Hou Limited Partnership Deferred Capital Contribution
18
2,066,666
2,066,666
TOTAL NON CURRENT LIABILITIES
32,930,549
24,876,737
TOTAL LIABILITIES
34,619,293
35,823,194
128,319,931
124,933,880
NET ASSETS EQUITY Retained Earnings
27
19,398,566
19,679,641
Reserves
27
108,921,365
105,254,239
128,319,931
124,933,880
TOTAL EQUITY
Ātihau-Whanganui Incorporation's Committee of Management authorised the financial statements for issue on 28 October 2016. Signed for and on behalf of the Committee:
Mavis Mullins Chairperson 28 October 2016
44
Whatarangi Murphy-Peehi Chairman of the Audit and Risk Committee 28 October 2016 These statements should be read in conjunction with the accompanying notes.
Ä€tihau-Whanganui Incorporation STATEMENT OF CASH FLOWS For the Year Ended 30 June 2016 CASH FLOWS FROM OPERATING ACTIVITIES
2016 $
2015 $
18,856,943
19,419,901
73,483
70,998
-
1,304
18,930,426
19,492,203
14,374,263
14,569,910
1,774,741
1,892,118
Cash was provided from: Receipts from operations Interest & Dividends Received Income Tax Refunds Cash was disbursed to: Payments to suppliers and employees Interest Paid Net GST Paid
NET CASH FLOWS FROM OPERATING ACTIVITIES
117,806
-
16,266,810
16,462,028
2,663,616
3,030,175
179,458
136,864
179,458
136,864
1,471,883
1,986,449
CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds from disposals of Property, Plant & Equipment Cash was disbursed to: Acquisition of Property, Plant & Equipment Purchase of Investments
NET CASH FLOWS FROM INVESTING ACTIVITIES
173,758
54,998
1,645,641
2,041,447
(1,466,183)
(1,904,583)
-
607,590
-
607,590
CASH FLOWS FROM FINANCIAL ACTIVITIES Cash was provided from: Receipts from advance repayments
Cash was disbursed to: Repayment of Borrowings
921,759
50,000
Distributions & donations
949,746
898,395
1,871,505
948,395
(1,871,505)
(340,805)
NET CASH FLOWS FROM FINANCIAL ACTIVITIES
(674,072)
784,787
Cash at the Beginning of the Year
Net Increase (Decrease) in Cash Held
814,504
29,717
CASH AT THE END OF THE YEAR
140,432
814,504
These statements should be read in conjunction with the accompanying notes.
45
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
1. REPORTING ENTITY Ātihau-Whanganui Incorporation (AWHI) is registered under the Te Ture Whenua Maori Act 1993 and is incorporated in New Zealand.
Specific Accounting Policies The following specific accounting policies which materially affect the measurement of the Statement of Comprehensive Income and Balance Sheet have been applied:
Statement of Compliance and Basis of Preparation The financial statements for the Ātihau-Whanganui Incorporation have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP) under the requirements of the Financial Reporting Act 2013 and the Te Ture Whenua Māori Act 1993.
(a) Revenue Recognition
Ātihau-Whanganui Incorporation is a for-profit entity for the purposes of complying with NZ GAAP. AWHI qualifies for NZ IFRS (RDR) as it is not a large for-profit public sector entity. The Incorporation is eligible for and has elected to report in accordance with Tier 2 For Profit accounting standards and has applied disclosure concessions. The preparation of financial statements in conformity with NZ IFRS (RDR) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the incorporation's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant are disclosed at the end of the accounting policies. Basis of Preparation The financial statements have been prepared under the historical cost basis except for biological assets and some financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below. Historic cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. The information is presented in New Zealand dollars and all values are rounded to the nearest dollar. This is the first year of application of IFRS (NZ) RDR, previous accounts have been prepared in accordance with "old GAAP". The financial statements have been prepared using the significant accounting polices and measurement basis that are in effect at 30 June 2016 as summarised below. These were used throughout all periods presented in the financial statements, except where the Incorporation has applied certain accounting policies and exemptions upon transition to IFRS. 46
Revenue is measured at the fair value of the consideration received or receivable. Sales of livestock and other agricultural produce are recognised upon receipt by the customer and when the significant risks and rewards of ownership of the goods have been transferred. Rental income is recognised on a straight line basis over the term of the lease. Dividends received are recognised on receipt, net of nonrefundable tax credits. Milk proceeds are recognised in alignment with the processor Fonterra, recorded on a per dollar per kilogram of milk solid production basis. (b) Expenses Expenses are recognised on a functional basis in the period in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. (c) Trade Receivables Trade Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectable amounts. Individual debts that are known to be uncollectable are written off in the period that they are identified. Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. (d) Property, Plant & Equipment Items of property, plant and equipment, except for land, are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of property, plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present.
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. Land is revalued every three years to the most recent rateable value consistent with the Te Ture Whenua Maori Act 1993. Revaluations are reflected through Other Comprehensive Income and cumulative revaluations reflected in the PPE Revaluation Reserve. All other repairs and maintenance are recognised as expenses in the Statement of Comprehensive Income in the financial period in which they are incurred.
expense. Where there is a deferred tax asset an assessment is performed annually as to whether recognition is required. (g) Investments Investments in shares can be categorised as held-fortrading, held-to-maturity or available-for-sale. Shares held have been classified as available-for-sale. At balance date shares are revalued to fair value and any gains or losses reflected through other comprehensive income. (h) Intangible Assets (Emission Trading Units) Emission trading units have been purchased and earned off growing forestry.
Depreciation rates applied to classes of assets are:
Pre-1990 Forest Land AWHI land contains pre-1990 forest land subject to the provision of the NZ emissions trading scheme (ETS). If the land is deforested the owner is required to surrender NZ Emission Trading Units (NZU's) and any shortfall not held by the owner must be purchased for surrender. As there is no intention to change the land use (native forest) AWHI recognises them initially at cost and revalues them at reporting date through other comprehensive income and reserves.
Class Land Buildings Bridges Development Improvements Plant & Machinery Furniture & Fittings Motor Vehicles
Post-1989 Forest Land AWHI chose to enter the ETS for post-1989 forest land and earns NZUs as forests grow and carbon is stored in the forest from a 2008 baseline. NZUs are required to be returned to the Crown if the carbon stored in the specified area reduces. NZUs are initially recognised at cost and revalued to market value at reporting date. If the obligation to return units arises this obligation is recognised on the Statement of Financial Position.
The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold land, is depreciated on a straight-line or diminishing value basis over the asset's useful life to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
From 0% 0% 2% SL 5% DV 0% 6% DV 8% DV 6% DV
To 0% 20% DV 20% DV 25% SL 40% DV 36% DV 40% DV 36% DV
Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the Statement of Comprehensive Income. (e) Investment Property Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost, including transaction costs. Revaluations are performed every three years to rateable value in accordance with the Te Ture Whenua Maori Act 1993. Gains and losses on revaluation are reflected through net surplus. (f) Income Tax The Incorporation is registered as a Maori Authority for income tax purposes. Income tax expense for the year comprises current income tax expense and deferred tax
Net proceeds relating to the trading of NZUs are reflected in Net Surplus. (i) Financial Instruments Financial assets and financial liabilities are recognised when AWHI becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through net surplus) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through net surplus are recognised immediately in net surplus.
47
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
Financial Assets Financial assets are classified into specified categories: financial assets "at fair value through net surplus", "held to maturity" investments, "available-for-sale" (AFS) financial assets and "loans and receivables". The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. All transactions are recognised (or derecognised) on a trade date basis. AWHI does not currently hold any held-for-trading financial assets or held-to-maturity investments. Available-for-sale financial assets are non-derivatives that are either designated as AFS or are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through net surplus. AFS financial assets held by AWHI include supplier shares which are issued at $1 and if surrendered are repaid at a $1. Where shares are able to be traded on the listed or unlisted exchange these are reflected at market value. They also hold shares for which there are value changes, including Fonterra shares. These are reflected at values advised by Fonterra. Dividends on AFS equity instruments are recognised in net surplus when AWHI's right to receive the dividends is established. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. Loans and receivables (includes trade and other receivables, and cash and cash equivalents) are measured at amortised cost using the effective interest rate, less an impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the effect of discounting is immaterial. Impairment of financial assets: Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one ore more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been effected. Impairments are assessed on an individual basis. Financial Liabilities Financial liabilities are classified as either financial liabilities at fair value through net surplus or other financial liabilities.
48
No financial liabilities are held at fair value through net surplus. Other financial liabilities (including borrowings and trade and other payables) are initially recorded at cost and subsequently measured at amortised cost using the effective interest method. Due to the short term nature of trade and other payables these are not discounted. Borrowings are subsequently measured at amortised cost using the effective interest method. All borrowing costs are recognised as an expense in the period they are incurred. (j) Provisions Provisions are recognised when the entity has an obligation which can be reliably measured at balance date as a result of a past event and it is probable that the entity will be required to settle the obligation. Where the entity expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Statement of Comprehensive Income net of any reimbursement. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the obligation at balance date. Movements in the best estimate are recorded in the Net Surplus (Statement of Comprehensive Income). (k) Development Expenditure Development costs are deferred where expenditure is carried out on AWHI's farming property over and above normal maintenance and future benefits are expected to exceed those costs. Deferred development costs are amortised over future periods in relation to expected future revenue in each period. Unamortised costs are reviewed at each balance date to determine the amount (if any) that is no longer recoverable, and any amount so identified is written off. Deferred development expenditure is reflected within property, plant and equipment. (l) Goods and Services Taxation (GST) All amounts are stated exclusive of goods and services tax (GST) except for accounts payable and accounts receivable which are stated inclusive of GST.
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
(m) Investments in Associates and Joint Ventures Associates are those entities over which AWHI is able to exert significant influence but which are not subsidiaries. A joint venture is an arrangement that AWHI controls jointly with one or more other investors and over which AWHI has rights to a share of the arrangement's net assets rather than direct rights to underlying assets and obligations for underlying liabilities. The Incorporation's investment in associates and joint ventures are accounted for using the equity method of accounting in the financial statements. Under the equity method, investments in associates and joint ventures are carried in the Balance Sheet at cost plus post-acquisition changes in the share of net assets of the associates and joint ventures.
to the accounting policies. These have been reflected in both the comparatives and the current year. Where this has impacted on equity further information is included in the Statement of Changes in Equity. (s) Critical Judgements in Applying Accounting Policies Valuation of Livestock AWHI values livestock using market values provided by PGG Wrightson Ltd. These market values reflect livestock of similar age, breed and genetic merit throughout New Zealand. Depreciation Rates Assessments are made of appropriate depreciation rates to be applied to property, plant and equipment based on useful lives and residual values of the assets.
The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise AWHI's share of the net surplus and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with AWHI's accounting policies. (n) Biological Assets Livestock are valued at their fair market value. Subsequent fair value changes are recognised in livestock revenue (Net Surplus / Statement of Comprehensive Income). (o) Dividends Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at balance date. (p) Employee Benefit The provision for employee entitlements is recognised as a liability in the Balance Sheet. These benefits include salaries, wages and annual leave. (q) Stock feed and Inventory Stock feed on hand and other inventories are stated at the lower of cost and net realisable value. (r) Changes in Accounting Policies and Disclosures The Incorporation has implemented the New Zealand equivalent to International Financial Reporting Standards RDR for the first time. This has necessitated several changes
49
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
2. LIVESTOCK REVENUE
Sales Sheep Cattle
2016 $
2015 $
8,904,382
9,415,705
6,846,344
5,493,236
15,750,726
14,908,941
Sheep
(386,700)
(395,024)
Cattle
(676,176)
(741,235)
-
(2,500)
(1,062,876)
(1,138,759)
(717,791)
904,753
13,970,059
14,674,935
2016 $
2015 $
Total Sales Purchases
Horses Total Purchases Increase / (Decrease) in Value Total Livestock Revenue
3. OTHER GAINS AND LOSSES
Gain on disposal of property, plant and equipment Gain on disposal of investments
37,136
50,689
1,805
-
Gain / (loss) on disposal of emission trading units
276,750
(15,581)
Total Gains and Losses
315,691
35,108
2016 $
2015 $
4. FINANCE INCOME
Dividends received Interest income Total Finance Income
50
67,058
69,900
6,425
6,971
73,483
76,871
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
5. DEPRECIATION & LOSS ON SALE
Depreciation Loss on sale of property, plant and equipment Total Depreciation & Loss on Sale
2016 $
2015 $
2,368,490
3,478,062
56,824
10,886
2,425,314
3,488,948
2016 $
2015 $
6. OTHER OPERATING EXPENSES
Audit Fees
30,285
28,620
Accountancy, legal and consultancy
581,509
549,773
Administration expenses
369,047
274,730
94,661
99,208
5,580
-
1,081,082
952,331
2016 $
2015 $
Project expenses Other operating expenses Total Operating Expenses
7. EQUITY ACCOUNTED INVESTMENTS
Share of surplus / (deficit) after tax
(750,503)
(693,475)
Revaluations and other movements
836,454
156
85,951
(693,319)
Total increase (decrease) in Equity Accounted Investments
51
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
8. INCOME TAX
a) Tax Expense
Net Surplus / (deficit) before income tax Tax at the New Zealand tax rate applicable to MÄ ori Authorities (17.5%)
2016 $
2015 $
408,209
(1,849,455)
71,437
(323,654)
206,001
77,845
In calculating taxable income the following adjustments were made: Temporary differences - livestock
- depreciation
268,845
354,744
(222,057)
69,293
(373,171)
(179,858)
48,946
57,880
Benefit of tax losses utilised
-
(56,250)
Net tax expense
-
-
2016 $
2015 $
12,670,292
12,670,292
2,075,743
1,822,812
- other temporary differences Permanent differences - livestock
- other permanent differences
b) Deferred tax liabilities and assets
Taxation losses available for offset against future income Deductible temporary differences not recognised in the Balance Sheet
Net deferred tax benefit including the benefit of the taxation losses above which have not been recognised (due to uncertainties about if and when losses will be utilised).
52
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
9. BIOLOGICAL ASSETS
Sheep
Balance at the beginning of the year Increase due to purchases Decrease due to sales Biological transformations Changes in fair value Total sheep on hand Cattle (Dairy & Beef)
Balance at the beginning of the year Increase due to purchases Decrease due to sales Biological transformations Changes in fair value Total cattle on hand Horses on hand Total Livestock
2016 $
2015 $
12,326,880
13,762,607
386,700
395,024
(8,904,382)
(9,415,705)
7,741,699
9,522,396
1,295,828
(1,937,442)
12,846,725
12,326,880
15,343,650
13,003,165
676,176
741,235
(6,846,344)
(5,493,236)
4,724,778
5,137,918
207,754
1,954,568
14,106,014
15,343,650
7,212
7,212
26,959,951
27,677,742
2016 $
2015 $
10. INVESTMENT PROPERTY
Balance at beginning of the year Revaluations Balance at end of the year
7,871,400
8,133,400
-
(262,000)
7,871,400
7,871,400
53
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
11. INVESTMENTS IN ASSOCIATES & JOINT VENTURES 2016 $
AWHI has the following investments in associates & joint ventures:
Papahau Forestry Partnership
Ownership & Voting
Basis
2015 $
50%
Valuation
1,645,136
799,107
Te Hou Limited Partnership
33.33%
Cost
6,320,494
6,152,253
Te Hou GP Limited
33.33%
Cost
-
-
7,965,630
6,951,360
799,107
802,335
(503)
(16,095)
10,078
12,867
Papahau forestry partnership and Te Hou GP Limited accounts are unaudited. Te Hou Limited Partnership is subject to audit, but audited figures are unavailable. The share of deficit in 2016 is based on management estimate. Adjustments will be reflected in the following years accounts. Papahau Forestry Partnership
Balance at the beginning of the year Share of surplus / (deficit)
Note 7
Capital contributions Revaluations
Note 7
Balance at the end of the year Te Hou Limited Partnership
Balance at the beginning of the year Share of surplus / (deficit)
Note 7
Capital contributions Revaluations
54
Note 7
836,454
-
1,645,136
799,107
6,152,253
6,829,633
(750,000)
(677,380)
918,241
-
-
-
Balance at the end of the year
6,320,494
6,152,253
Total Investments in Associates & Joint Ventures
7,965,630
6,951,360
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
12. SHARE INVESTMENTS 2016
Available for Sale Investments
Number of Shares
2015
Number of Shares
2016 $
2015 $
Ravensdown
500,000
500,000
500,000
500,000
Fontera Co-operative Group
148,021
145,842
871,844
700,041
-
-
7,127
18,122
1,378,971
1,218,163
2015
2016 $
2015 $
Other share investments Total Share Investments
13. INTANGIBLES (EMISSION TRADING UNITS) 2016
Number of Units
Number of Units 765,454
2,687,026
1,399,413
Additions
-
86,223
-
-
Disposals
(120,000) -
(425,165) -
(756,000)
(55,271)
3,509,562
1,342,884
306,512
426,512
5,440,588
2,687,026
Balance at beginning of the year
Revaluations Balance at end of the year
426,512
All units in 2016 are NZU's. The units disposed of in 2015 were the Incorporation's remaining Emission Reduction Units.
55
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 14. PROPERTY, PLANT & EQUIPMENT As at 30 June 2016 OPENING Acc Dep
Cost
Class
Freehold Land
87,119,700
Improvements
As at 30 June 2015
-
OPENING Acc Dep
Bk Value
Cost
87,119,700
91,216,700
-
91,216,700
4,934,360
719,288
4,215,072
4,885,256
661,142
4,224,114
14,063,786
1,919,062
12,144,724
14,495,054
1,863,753
12,631,301
Plant & Machinery
1,931,916
1,235,265
696,651
1,762,706
1,108,313
654,393
Motor Vehicles
1,999,766
901,218
1,098,548
1,751,513
891,049
860,464
425,361
260,798
164,563
331,295
244,460
86,835
13,411,068
6,493,467
18,965,628
10,445,054
8,520,574
18,446,699 111,932,725
133,408,152
15,213,771
118,194,381
-
-
-
-
18,446,699 111,932,725
133,408,152
15,213,771
118,194,381
Buildings & Bridges
Furniture & Fittings Development
19,904,533 130,379,422
Uncompleted Capital Works Total Property, Plant & Equipment
-
-
130,379,422
As at 30 June 2016 Class
Additions
Disposals
Freehold Land
-
-
Improvements
-
-
Buildings & Bridges
As at 30 June 2015
Revaluations
Depn & Amort
Additions
Disposals
Depn & Amort
Revaluations
-
-
-
-
(4,097,000)
-
-
47,891
19,033
-
27,737
57,612
87,399
-
-
57,282
172,873
-
(603,607)
55,843
Plant & Machinery
371,526
79,574
-
135,031
175,426
1,881
-
131.511
Motor Vehicles
719,988
119,572
-
305,789
584,237
95,180
-
250,744
73,660
-
-
47,240
94,065
-
-
16,338
-
-
2,966,014
97,061 (4,672,870)
3,478,062
Furniture & Fittings Development
Uncompleted Capital Works Total Property, Plant & Equipment
238,998
-
-
1,775,257
938,905
1,491,571
199,146
-
2,368,490
1,984,539
79,011
-
-
-
-
1,570,582
199,146
2,368,490
1,984,539
-
-
As at 30 June 2016 Class
Cost
-
-
97,061 (4,672,870)
3,478,062
As at 30 June 2015
CLOSING Acc Dep
Bk Value
Cost
CLOSING Acc Dep
Bk Value
Freehold Land
87,119,700
-
87,119,700
87,119,700
-
87,119,700
Improvements
4,934,360
767,179
4,167,181
4,934,360
719,288
4,215,072
14,151,185
1,976,344
12,174,841
14,063,786
1,919,062
12,144,724
Buildings & Bridges Plant & Machinery
2,223,868
1,370,296
853,572
1,931,916
1,235,265
696,651
Motor Vehicles
2,600,182
1,207,007
1,393,175
1,999,766
901,218
1,098,548
Furniture & Fittings Development
499,021
308,038
190,983
425,361
260,798
164,563
20,143,531
15,186,325
4,957,223
19,904,533
13,411,068
6,493,467
20,815,189 110,856,675
130,379,422
18,446,699
111,932,725
79,011
-
-
-
20,815,189 110,935,686
130,379,422
18,446,699
111,932,725
131,671,847 Uncompleted Capital Works Total Property, Plant & Equipment 56
Bk Value
79,011 131,750,858
-
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
15. PROVISIONS
Provision for storm damage
Balance at the beginning of the year Amounts charged to the provision Amounts used Balance at the end of the year Provision for future forestry expenses Balance at the beginning of the period Amounts used
2016 $
2015 $
438,492
-
-
438,492
(438,492)
-
-
438,492
39,993
39,993
(39,993)
-
Balance at the end of the year
-
39,993
Total Provisions
-
478,485
2016 $
2015 $
-
8,850,000
Non-Current
28,891,208
20,962,967
Total Borrowings
28,891,208
29,812,967
16. BORROWINGS
Secured Current
Secured liabilities and assets pledged as security The BNZ borrowings are secured by a registered first mortgage over specific land and a charge over all livestock owned by AWHI. Alienation of such Māori freehold land is subject to Te Ture Whenua Maori Act 1993 requirements. The carrying value of assets pledged as security for borrowings are:
Certificate WN7D/391 Livestock
116,290,345 117,844,363
Total pledged assets
143,250,296 145,522,105
26,959,951
27,677,742
57
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
17. UNCLAIMED DIVIDENDS
Balance at the beginning of the period Dividend declared Dividends paid Total Unclaimed Dividends
2016 Cents per share
2015 Cents per share
55
60
2016 $
2015 $
1,847,104
1,654,103
691,089
753,917
(565,518)
(560,916)
1,972,675
1,847,104
18. TE HOU LIMITED PARTNERSHIP DEFERRED CAPITAL CONTRIBUTIONS
Capital Contribution Liability
2016 $
2,066,666
2015 $
2,066,666
On 26 May 2014 AWHI entered into a Limited Partnership which operates an arable, dairy and dry stock operation with forestry. The agreement includes the requirement to contribute capital to the Limited Partnership. There is also an obligation to contribute development capital contributions which are contingent on cash requirements of the Limited Partnership.
58
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
19. FINANCIAL INSTRUMENTS
Financial Assets 2016
Amortised Cost $
Cost
Fair Value through Other Comp Inc $
$
Total $
Cash and cash equivalents
140,432
-
-
140,432
Trade and other receivables
1,518,210
-
-
1,518,210
-
-
1,378,971
1,378,971
1,658,642
-
1,378,971
3,037,613
Investment in shares Total Financial Assets
Financial Liabilities 2016 Trade and other payables
Amortised Cost $
Cost
Fair Value through Other Comp Inc $
$
Total $
882,081
-
-
882,081
2,066,666
-
-
2,066,666
Borrowings
28,891,208
-
-
28,891,208
Total Financial Liabilities
31,839,955
-
-
31,839,955
Te Hou LP deferred contribution
Financial Assets 2015
Amortised Cost $
Cost
Fair Value through Other Comp Inc $
$
$
Cash and cash equivalents
814,504
Trade and other receivables
853,096
-
-
853,096
-
-
1,218,163
1,218,163
1,667,600
-
1,218,163
2,885,763
Investment in shares Total Financial Assets
Financial Liabilities 2015 Trade and other payables Te Hou LP deferred contribution
Amortised Cost $
960,245
-
Total
Cost
-
Fair Value through Other Comp Inc $
$
-
814,504
Total $
-
960,245
2,066,666
-
-
2,066,666
Borrowings
29,812,967
-
-
29,812,967
Total Financial Liabilities
32,839,878
-
-
32,839,878
59
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 20. MAORI AUTHORITY CREDIT ACCOUNT 2016 $
a) Maori Authority Credit Account balance at the end of the year b) Balance of retained earnings earned prior to 2004.
2015 $
370,516
369,079
9,535,332
10,226,421
2016 $
2015 $
Dividends paid from retained earnings prior to 2004 have no Māori Authority Credits attached.
21. RELATED PARTIES
a) Te Āti Hau Trust
Donations during the year
380,000
405,215
Year end Payable
40,000
-
Contract Fencing Services
-
23,100
2016 $
2015 $
1,445,829
1,224,789
2016 $
2015 $
AWHI is the settlor of Te Āti Hau Trust and appoints three of the trustees
b) Jim Edmonds (Committee of Management) Key Management Personnel Compensation
Key management of the Incorporation are the members of the Committee of Management, the Chief Executive Office, Farm Operations Manager and the Station Managers. Total Key Management Personnel remuneration
22. CONTINGENT LIABILITIES
a) Arising from the Emissions Trading Scheme
There is a Contingent Liability relating to the Carbon Account Record which represents the total number of units which are required to be surrendered when or if land is withdrawn from the ETS. Management have no plans to change land use at this time which would trigger such a liability. The forest on land is insured against forest fire.
3,773,328
3,773,328
381,788 272,710 654,498
918,241 381,788 272,710 1,572,739
b) Arising from interest in a Joint Venture
The development liability to the Te Hou Limited Partnership is contingent on the future cash requirements of the Limited Partnership. Due 30/06/2016 Due 30/06/2017 Due 30/06/2018 Total 60
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 23. SUBSEQUENT EVENTS There have been no subsequent events after year end (2015: Nil). 24. OPERATING LEASE ARRANGEMENTS
Operating leases relate to leases of offices and land. Operating lease expense (included in Farm working and Other operating expenses) Non-cancellable operating lease commitments Not later than 1 year
Later than 1 year and less than 5 years Later then 5 years
2016 $
2015 $
59,477
35,268
70,818
28,393
212,520
34,870
12,658
-
295,996
63,263
2016 $
2015 $
2016 Number
2015 Number
25. COMMITMENTS FOR EXPENDITURE
Commitments for the aquisition of property, plant and equipment
440,382
-
26. CAPITAL
Number of shares (fully paid)
1,256,529
1,256,529
These shares have no par value and share equally in dividends paid. 27. RESERVES Retained Earnings Retained Earnings comprise the incorporations net profits less dividends paid. Capital Reserves Capital Reserves represent realised capital profits predominantly arising from Crown grants. Property Revaluation Reserve The property reserve arises on the revaluation of land and buildings. When revalued land and buildings are sold, the proportion of the properties revaluation reserve that relates to the asset is transferred to capital reserves. ETU Reserve The Emissions Trading Units Reserve represents revaluations of Emission Trading Units. When revalued ETUs are sold, the proportion of the reserve that relate to those units are transferred to retained earnings. AFS Share Reserve The available for sale share reserve represents unrealised revaluations of share investments. Share Revaluation Reserve The share revaluation reserve at the end of 2014 was divided into the ETU and AFS share reserves. Livestock Reserve The livestock revaluation reserve at the end of 2014 represented cumulative livestock price revaluations. This reserve is now included within Retained Earnings. 61
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ATIHAU WHANGANUI INCORPORATION Report on the Financial Statements We have audited the financial statements of Atihau Whanganui Incorporation on pages 41 to 61, which comprise the Balance Sheet as at 30 June 2016, the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Committee’s Responsibility for the Financial Statements The Committee of Management is responsible on behalf of the entity for the preparation of financial statements that give a true and fair view in accordance with New Zealand Equivalents to International Financial Reporting Standards Reduced Disclosure Regime (“NZ IFRS RDR”) and for such internal control as the Committee of Management determine is necessary to enable the preparation 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 financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Other than in our capacity as auditor we have no relationship with, or interests in, Atihau Whanganui Incorporation. Basis for Qualified Opinion Atihau Whanganui Incorporation’s joint venture investment in Te Hou Limited Partnership is accounted for using the equity method of accounting and is carried at $6,320,494 on the Balance Sheet as at 30 June 2016. Atihau Whanganui Incorporation’s share of Te Hou Limited Partnership’s net loss of $750,000 is included in Atihau Whanganui Incorporation’s income for the year then ended. We were unable to obtain sufficient appropriate audit evidence about the carrying amount of Atihau Whanganui Incorporation’s investment in Te Hou Limited Partnership as at 30 June 2016 and Atihau Whanganui Incorporation’s share of Te Hou Limited Partnership’s net loss for the year then ended because audited results were not available for inclusion and hence a management estimate has been recorded. Consequently, we were unable to determine whether any adjustment to these amounts was necessary.
62
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
Atihau Whanganui Incorporation’s Land and Investment Properties are revalued every 3 years at Rateable Value in accordance with the Te Ture Whenua Maori Act 1993. This constitutes a departure from New Zealand Equivalents to International Financial Reporting Standards Reduced Disclosure Regime (“NZ IFRS RDR”) which requires Land and Investment Properties to be revalued to fair value. Consequently, we were unable to determine whether any adjustment to these amounts was necessary. Qualified Opinion In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph, the financial statements on pages 41 to 61, give a true and fair view of the financial position of Atihau Whanganui Incorporation as at 30 June 2016, and its financial performance and cash flows for the year then ended in accordance with New Zealand Equivalents to International Financial Reporting Standards Reduced Disclosure Regime (“NZ IFRS RDR”). Report on Other Legal and Regulatory Requirements • The Share Register and Index of Shareholders required by Section 263 of the Te Ture Whenua Maori Act 1993, has been compiled and correctly kept by the Incorporation. • The Incorporation’s assets have been recorded at estimated current market value in the financial statements with the latest Rateable Values used as an estimate of current market value for land and Investment Properties. Whilst this is a departure from New Zealand Equivalents to International Financial Reporting Standards Reduced Disclosure Regime (“NZ IFRS RDR”), it is consistent with Section 276A(3)(c) of the Te Ture Whenua Maori Act 1993. Spooner Hood & Redpath Ltd Chartered Accountants Whanganui, New Zealand 28 October 2016
63
64
Te Āti Hau Trust FINANCIAL STATEMENTS 2016
CONTENTS 66
Entity Information
68
Statement of Service Performance
69
Statement of Financial Performance
70
Statement of Financial Position
71
Statement of Cash Flows
72
Notes to and forming part of the Performance Report
76
Auditors' Report
65
Te Āti Hau Trust ENTITY INFORMATION As at 30 June 2016
Te Āti Hau Trust is a Discretionary Trust, established by a trust deed dated 23 April 2009 and registered under the Charities Act 2005.
Entity's Purpose or Mission
The support of the educational and cultural aims of the Māori people in the District. Operations are governed by its Trust Deed that aligns to and supports the requirements of the Charities Act.
Address
c/- Balance Chartered Accountants 16 Bell Street WHANGANUI 4500
Entity Structure
Te Āti Hau Trust is a Charitable Trust incorporated under the Charitable Trusts Act 1957 and is also registered under the Charities Act 2005.
Trustees
Members of Ātihau Whanganui Incorporation: Tiwha Puketapu (Chairperson) Jim Edmonds Keria Ponga Independent members appointed: Anton McKay Don Robinson (ceased 30 June 2016) Kapitorina Hall (Appointed 1 July 2016)
Main Source of Cash and Resources
66
Tribal purposes grant from Ātihau Whanganui Incorporation approved annually at the Ātihau Annual General Meeting.
Te Āti Hau Trust ENTITY INFORMATION As at 30 June 2016
Beneficiary
Ātihau Shareholders
GST
Not Registered
Accountants
Balance Chartered Accountants Limited 16 Bell Street Whanganui
Auditor
Spooner Hood & Redpath Limited Chartered Accountants Whanganui
Bankers
Bank of New Zealand Whanganui
Solicitors
Horsley Christie Whanganui
IRD Number
102-612-817
Registered Charity Number
CC41172
67
Te Āti Hau Trust STATEMENT OF SERVICE PERFORMANCE For the Year Ended 30 June 2016 Description of Trust Outcomes Te Āti Hau Trust was established in 2009 as a charitable arm of Ātihau Whanganui Incorporation to apply funding for charitable, cultural, philanthropic, educational, recreational and other purposes, being purposes beneficial principally to the Shareholders and Stakeholders. Those grants may include Maori cultural development and support, educational and vocational development and support, social development and support, marae development and support, health and welfare development and support, and the fostering of strategic alliances with persons promoting or assisting with any of these objects. The grants are made under the following guiding principles: Matauranga Education Kotahitanga Unity of purpose Mānaakitanga Nurture and reciprocate Whanaungatanga Collaboration Rangatiratanga Leadership Wairuatanga Spirituality Mana Whenua Responsibility to the land and the people Kaitiakitanga Active stewardship Mana Tupuna Legitimacy Te Reo Identity Te Āti Hau Trust budget for grants for 2015/16 was $280,000 (2014/15: $275,000)
Te Āti Hau Trust budget for tangihanga tent koha was $20,000 (2014/15: $20,000)
General Grants Sport Art and Travel
Grants Made 2016 Number
Actual 2016 $
Grants Made 2015 Number
Actual 2015 $
24
11,445
19
12,800
Cultural
7
14,500
18
32,125
Kaumatua Assistance
0
-
5
4,471
Marae
1
2,500
3
30,000
32
28,445
45
79,396
129
88,800
165
102,905
0
-
7
2,450
Education Grants Tertiary - undergraduate full time Tertiary - undergraduate part time No Fees
0
-
8
1,200
Medical
48
40,850
16
15,300
Secondary School - Year 10 and 11
71
17,750
92
23,000
High Performance
3
3,000
12
11,100
14
20,400
18
25,700
Agriculture
2
6,000
2
3,000
PHD
1
3,000
2
6,000
Post Graduate
Overseas Grants
Tangihanga tent
68
9
21,000
2
4,000
277
200,800
324
194,655
42
12,600
57
17,100
These statements should be read in conjunction with the accompanying notes.
Te Āti Hau Trust STATEMENT OF FINANCIAL PERFORMANCE For the Year Ended 30 June 2016
Note
Actual 2016 $
Actual 2015 $
Donations, fundraising and other similar revenue
2
380,000
380,000
Interest, dividends and other investment revenue
3
103
18,461
380,103
398,461
Revenue
$
Total Revenue Less Expenses
Costs related to providing goods or services
4
65,151
48,973
Grants and donations
5
241,884
362,688
Volunteer and employee related costs
6
13,987
13,289
Other Expenses
7
5,649
7,032
Total Expenses
326,671
431,982
Surplus/(Deficit)
53,432
(33,521)
These statements should be read in conjunction with the accompanying notes.
69
Te Āti Hau Trust STATEMENT OF FINANCIAL POSITION As at 30 June 2016
Note
2016 $
2015 $
Accumulated Surpluses
76,516
23,084
Total Accumulated Funds
76,516
23,084
43,516
17,704
Accumulated Funds
Represented by: Current Assets
Bank of New Zealand Bank of New Zealand - Call Account - 25
40
51,445
Debtors
40,100
16
Total Current Assets
83,656
69,165
1,719
3,390
85,375
72,555
Current Liabilities Creditors Employee/Trustee Costs Payable
8,859
46,996
-
2,475
Total Liabilities
8,859
49,471
76,516
23,084
Non Current Assets Property, Plant & Equipment
8
Total Assets
Net Assets
Signed for and on behalf of the Trust:
Brendon Te Tiwha Puketapu Chairperson 28 October 2016
70
Keria Ponga Trustee 28 October 2016
These statements should be read in conjunction with the accompanying notes.
Te Āti Hau Trust STATEMENT OF CASH FLOWS For the Year Ended 30 June 2016
Note
Cash Flows from Operating Activities Cash was received from:
Donations and other similar revenue Interest, dividends and other investments Cash was applied to: Payments to suppliers
Donations and grants paid Employee and Volunteer Costs Other Expenses
Net Cash Flows from Operating Activities
2016 $
2015 $
340,000
405,215
119
29,246
340,119
434,461
67,575
158,848
277,697
268,338
16,462
13,256
3,978
3,979
365,712
444,421
(25,593)
(9,960)
-
4,600
Cash Flows from Investing and Financing Activities Cash was received from:
Ātihau Whanganui Incorporation (Debtors) Term Deposit Maturity Cash was applied to:
Ātihau Whanganui Incorporation Unclaimed Dividends
Net Cash Flows from Investing and Financing Activities Net Increase / (Decrease in Cash) Opening Cash Closing Cash
This is represented by: Cash & Bank Balances
-
634,747
-
639,347
-
607,590
-
607,590
-
31,757
(25,593)
21,797
69,149
47,352
43,556
69,149
43,556
69,149
These statements should be read in conjunction with the accompanying notes.
71
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016 1. STATEMENT OF ACCOUNTING POLICIES Statement of Compliance and Basis of Preparation Te Āti Hau Trust is eligible to apply Tier 3 PBE Accounting Standards : PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit), on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000. The trust has elected to report in accordance with PBE SFR-A (NFP). All transactions in the Performance Report are reported using the accrual basis of accounting. The accounting principles recognised as appropriate for the measurement and reporting of the Statement of Financial Performance and Statement of Financial Position on a historical cost basis are followed by the trust, unless otherwise stated in the Specific Accounting Policies. The information is presented in New Zealand dollars. All values are rounded to the nearest $. The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future.
SPECIFIC ACCOUNTING POLICIES The following specific accounting policies which materially affect the measurement of the Statement of Financial Performance and Statement of Financial Position have been applied: a) Revenue Recognition Grant income is received annually as a result of an agreed tribal purposes grant. Any outstanding grant income not utilised by 30 June is not returnable. Interest received is recognised as interest accrues, gross of refundable tax credits received. b) Expenses Expenses have been classified on their business function. c) Trade Receivables Trade Receivables are recognised at estimated realisable value. d) Income Tax The Trust has charitable status and is exempt from income tax. e) Property, Plant & Equipment All other repairs and maintenance are recognised as expenses in the Statement of Financial Performance in the financial period in which they are incurred.
72
Depreciation has been calculated using the maximum rates permitted by the Income Tax Act 2007. The following estimated depreciation rates/useful lives have been used: Office Equipment
13 - 50%
Gains and losses on disposal of fixed assets are taken into account in determining the net result for the year. f) Goods and Services Taxation (GST) The amounts recorded in the performance report are inclusive of GST (if any). The trust is not registered for GST. g) Changes in Accounting Policies The charitable trust transitioned on 1 July 2014 from preparation of general purpose financial reporting in accordance with New Zealand generally accepted accounting practuce (NZ GAAP) to general purpose financial reporting in accordance with PBE SFR-A (NFP). The transition had minimal impact on the accounting policies of the trust. All accounting policies were applied consistently during the year.
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016 2. DONATIONS, FUNDRAISING AND OTHER SIMILAR REVENUE 2016 $
2015 $
AWHI Tribal Purposes Distributions
380,000
380,000
Total Donations, fundraising and other similar revenue
380,000
380,000
2016 $
2015 $
3. INTEREST, DIVIDENDS AND OTHER INVESTMENT REVENUE Interest Received - Gross Total Interest, dividends and other investment revenue
103
18,461
103
18,461
2016 $
2015 $
4. COSTS RELATED TO PROVIDING GOODS OR SERVICES Accountancy Fees Administration (Grant Administration) Bank Fees & Charges
8,295
8,382
41,013
17,129
45
40
Charities Commission
51
51
Committee Expenses
1,868
3,014
-
4,240
Database Expenses Grants Administrator Expenses
3,002
6,545
Secretarial Fees
10,877
9,572
Total Costs related to providing goods or services
65,151
48,973
2016 $
2015 $
5. GRANTS AND DONATIONS Awhiwhenua Training Project Housing Insulation Project
39
42,449
-
29,088
Tangihanga Koha
12,600
17,100
Sport, Art & Travel
11,445
12,800
Cultural
14,500
32,125
-
4,471
Kaumatua Assistance Marae
2,500
30,000
88,800
102,905
Tertiary Part Time
-
2,450
No Fees
-
1,200
17,750
23,000
3,000
11,100
40,850
15,300
3,000
6,000
21,000
4,000
Tertiary Full Time
Secondary Yr 10 & Yr 11 High Performance Medical PHD Overseas Agriculture Post Graduate Total Grants and Donations
6,000
3,000
20,400
25,700
241,884
362,688
73
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016
6. VOLUNTEER AND EMPLOYEE RELATED COSTS 2016 $
2015 $
Trustee Fees
13,987
13,289
Total Costs related to Volunteer and Employee
13,987
13,289
2016 $
2015 $
7. OTHER EXPENSES Audit Fees
3,979
3,979
Depreciation
1,429
3,053
241
-
5,649
7,032
Loss on Sale of Fixed Assets Total Costs related to Other Expenses
8. PROPERTY, PLANT & EQUIPMENT
Property, Plant & Equipment 2016 Office Equipment
Apple iPads 32G (2) GDPro Database Software Filing Cabinet
Purchases/ Depreciation (Sales or & Disposals) Impairment $ $
Closing Carrying Amount $
241
-
241
-
1,915
-
958
957
392
-
51
341
HP Laptop case and configuration
420
-
210
210
Microsoft Office and Remote User Networks
421
-
210
211
3,389
-
1,670
1,719
3,389
-
1,670
1,719
Purchases/ Depreciation (Sales or & Disposals) Impairment $ $
Closing Carrying Amount $
Total
Property, Plant & Equipment 2015 Office Equipment
Apple iPads 32G (2) GDPro Database Software
Opening Carrying Amount $
481
-
240
241
3,829
-
1,914
1,915
Filing Cabinet
451
-
59
392
HP Laptop case and configuration
841
-
420
421
Microsoft Office and Remote User Networks
Total 74
Opening Carrying Amount $
841
-
420
421
6,443
-
3,053
3,390
6,443
-
3,053
3,390
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016
9. RELATED PARTY INFORMATION
Related party matters arise with respect to Ātihau Whanganui Incorporation ("AWHI") in that under the terms of the Trust Deed three appointed trustees are also members of the AWHI Committee of Management and the Incorporation is the settlor of the Trust. Annual grants are received from AWHI, and AWHI previously advanced unclaimed dividends to the Trust. Don Robinson, a trustee, provides catering services to the Trust for meetings and collaboration hui. During the year he provided services to the Trust to the value of $542 (2015: $125). From time to time Trustees have and disclose interests in, or a relationship with individual applicants and/or grantee organisations and abstain from those decisions.
10. TRIBAL PURPOSES
Ātihau Whanganui Incorporation annually distribute funds to the Trust which is used to distribute for charitable purposes. During the year $380,000 was granted.
11. COMMITMENTS
The trust has no commitments as at 30 June 2016, (2015 Nil).
12. CONTINGENT LIABILITIES AND GUARANTEES
The charitable trust has no contingent liabilities and no guarantees as at 30 June 2016. (2015: Contingent Liabilities Nil. Guarantees Nil.)
13. EVENTS OCCURRING AFTER BALANCE DATE There have been no significant events since balance date.
14. ACCUMULATED FUNDS 2016 $
2015 $
Balance at beginning of the year
22,984
56,505
Surplus / (deficit) for the year
53,432
(33,521)
Balance at the end of the year
76,416
22,984
Total Accumulated Funds
76,516
23,084
Trust Capital Other Accumulated Funds
100
100
75
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016 INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TE ATI HAU TRUST
Report on the Financial Statements We have audited the Performance Report of Te Ati Hau Trust on pages 66 to 75, which comprise, the Statement of Financial Position as at 30 June 2016, the Statement of Financial Performance, Statement of Service Performance and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Board’s Responsibilities for the Financial Statements The Board are responsible on behalf of the entity for the preparation of financial statements that give a true and fair view of matters to which they relate and in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Not-‐For-‐Profit) PBE SFR-‐A (NFP) Standards and for such internal controls as the Board determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibilities Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view of the matters to which they relate in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Other than in our capacity as auditor, we have no relationship with, or interests in, Te Ati Hau Trust
76
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016 Opinion In our opinion, the financial statements present fairly, in all material respects, the Financial position of Te Ati Hau Trust as at 30 June 2016, and its Financial performance and cash flows for the year then ended in accordance with Public Benefit Entity Standards.
Spooner Hood & Redpath Ltd Chartered Accountants Whanganui, New Zealand 28 October 2016
77
TE ĀTI HAU TRUST Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT 2015 AGM SUMMARISED FOR THE YEAR ENDED 30 JUNE 2016MINUTES
Held at Whanganui Racecourse, 4 December 2015 Karakia:
Nohi Wallace
COMMITTEE OF MANAGEMENT REPORT
Mihi:
Toni Waho
• The current Committee of Management introduced themselves.
Written Apologies: Che Wilson Jim Edmonds
• The Chair noted her position on Taratahi in regards to the recent publicity. Audit and Risk
Heemi Stevenson
Sharon Smeaton
Identified skill gaps were identified on the Board Audit and Risk committee resulting in the appointment of Laurissa Cooney as an Independent Member.
Martha Mariu
Edward Tamou
Lana Bishop
Te Aroha Henry
Associate Director
Tirira Sosich
Gerald Haami
Sandra Thocolich
Bella Hansen
Rachel Whitehead - Ashcroft Whānau Trust
Board and Written Apologies were read and received. Moved Novena McGuckin / Seconded Jacquie Jeffrey (carried). The Chair addressed the shareholders: • Housekeeping matters • Kaumtua grant (Agenda item 11) – agreed to be dealt with by show of hands • Proxy forms, high percentage invalid due to appointing Committee of Management • ntroduced iStudios requesting permission for photos for the AWHI magazine. Committee of Management Elections The Chair invited the candidates to address the shareholders • Shar Amner • Keria Ponga • Te Tiwha (Brendon) Puketapu A call for Poll Voting (excluding kaumātua grant) was made by Debbie Te Riaki This motion was seconded by: • Cerise McMasters • Bobby Gray • Dana Blackburn • Novena McGuckin
• The Chair addressed the shareholders regarding the Associate Director programme. • The high calibre of applicants was noted. Francene Wineti was successfully appointed. Awhiwhenua • Awhiwenua training programme had its beginning with Te Āti Hau Trust, now transitioning to AWHI and is business as usual. Financial Service Provision • Balance Chartered Accountants aligned with Deloittes to offer enhanced services. • Hilton Joll of Deloittes was introduced to the shareholders. Diversification • Resilience through diversification – a current and predicted vision was shared with the shareholders Communication Strategy • AWHI magazine had 800+ reads and 3,000 more viewing online Don Robinson • Don Robinson, who is retiring from the AWHI board, addressed the shareholders, and spoke of his time as a board member. CEO REPORT The Chair acknowledged CEO Andrew Beijeman’s recent MBA (Business Management) graduation. Andrew Beijeman addressed the shareholders. Key Shareholder Issues • Number of uri employed by AWHI: - 45 people employed; approximately 40% are uri. • Responses on the following: - Futuristic science such as beef grown in laboratories and the effect on AWHI. - All Te Hou calves receive colostrum. - AWHI does not use genetically modified seed. - Ngā Whenua Rāhui kawenata explanation - Whānau hapū interest in honey strategy
78
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016
FINANCIAL REPORT
TE ĀTI HAU TRUST
Glenn Brown of Balance Chartered Accountants presented the audited financial statements for 2014/2015
Toni Waho, the outgoing Chair, addressed the shareholders; trustees introduced.
Key Shareholder Issues
Grants
• Increased interest cost attributed to the Te Hou investment
• The Trust Chair spoke about the grants policy.
• Loans are offset against livestock, shares and Te Hou
• Noted the fraudulent application received and investigated by Department of Internal Affairs.
• When will Balance give consideration to provide a financial scholarship? • Hilton Joll of Deloitte responded positively CEO and Committee of Management Reports received.
Scholarships • Ohotu scholars: Jacob Robinson, Josh Firmin, Jeanette Trego, Kendrix Kereopa –Woon.
Moved Kataraina Millin / Seconded Te Uta Hibbard (carried).
• Robin Murphy-Peehi scholarship is now open as Hinurewa Poutu has completed her studies.
Finance Report received.
• Ravensdown Scholarship: Sam O’Donnell will complete in 2015 and a new applicant for 2016 will be sought.
Moved Novena McGuckin / Seconded Olive Hawira (Carried). Recommendation to adopt the recommendation of the Committee of Management: That a dividend of 55 cents a share be paid in December 2015 pursuant to section 259 (1) (c) of Te Ture Whenua Maori Act 1993. Moved Te Uta Hibbard / seconded Dana Blackburn (Carried). Recommendation that Sewell Wilson be automatically reappointed as auditor pursuant to section 277 (2) of Te Ture Whenua Maori Act 1993. Recommendation to appoint Balance Chartered Accountants Limited as Share Valuer. Moved Fleur Rogers / Seconded Geraldine Taurerewa (carried). Recommended that the kaumātua grant be approved by show of hands. Moved Kataraina Millin / Seconded Olive Hawira (carried). • The Chair noted the Board’s intention to cease cash grants and pay this by direct credit once qualifying requirements are verified. Recommendation to grant Te Āti Hau Trust $380,000 for the 2015 / 2016 financial year for its charitable purposes.
Trust Chair Te Tiwha Puketapu appointed Chair of Te Āti Hau Trust by Ātihau, following the retirement of Toni Waho, and Te Tiwha addressed the shareholders with the 2016 budget. • He noted the Trust has spent considerable effort refining its policies and procedures. • Te Tiwha thanked Toni Waho for his energy, motivation and intent to support our people. General Business Issues • Unclaimed Dividends strategy formulated to significantly reduce and manage. • Support for the aspirations and activation of Awhiwhenua training course. • Enquiry made about the Pou for the wind turbines. • Support and pleasure around the AWHI magazine. • Forthcoming opening of the Ūpokonui Bridge at Pipiriki on 17 December. It was recommended that voting be closed at 1pm. Moved Dana Blackburn / Seconded Jenny Tamakehu (carried). Hui closed at 12:55 meeting with a karakia from Nohi Wallace.
Moved Te Uta Hibbard / Seconded by Geraldine Taurerewa (Carried). Recommendation that the minutes of the AGM 5 December 2014 be confirmed as accurate. Moved Leigh Bason / Seconded Olive Hawira (Carried).
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GLOSSARY TE ĀTI HAU OF TRUST TERMS NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016
Accounts Receivable: Money owed to AWHI from customers at year end, also known as Trade Debtors Accounts Payable: Money owed by AWHI to suppliers of goods or services at year end, also known as Trade Creditors Accrued Income: Income earned by AWHI where cash has yet to be received Accrued Expenses: Expenses incurred by AWHI where cash has yet to be paid Asset: Anything owned by AWHI to use in generating income Balance Date: Term used to describe the end of AWHI’s financial year – 30th June Brassica: The plant family which includes turnips, swedes, rape, kale, cauliflower, cabbages, etc. Capital Stock: The breeding stock on AWHI farms that produce revenue or trading stock to generate income Carbon Credits on Hand: Number of NZ units (NZU) owned at balance date under the NZ Emissions Trading Scheme valued at market value. An NZU = 1 tonne of carbon dioxide equivalent of emissions or removals. Carrying Capacity: Number of livestock a property can graze annually without importation of feed or the deterioration of the property Change in Livestock Numbers: Difference in livestock numbers at end of year compared to the beginning of the year at market values Cull: To remove animals from a breeding population generally because of physical or performance deficiencies Current Asset: An asset of AWHI that is expected to be converted into cash within the next year Current Liability: A liability of AWHI which is generally due to be settled within 12 months of balance date Depreciation: The apportionment of cost of an asset over the useful life of the asset. An accounting method used to reflect the aging and use of an asset Direct Farm Expenses: Expenses incurred by AWHI’s farming operations in generating farm income Drought: A long period of time during which there is very little or no rain Dry Matter: The plant material left after all water has been removed – using DM% comparisons can be made between different feeds such as pasture, swedes, grains, hay, etc. Employee Entitlements: Holiday pay and other leave entitlements owing to employees at balance date Equity: A measure of the shareholders’ total interest in AWHI – the amount by which the value of assets exceed the value of liabilities Feedlot: A third party location where AWHI’s cattle are fed a high protein diet over the winter months Fertility (of soil): Status of soil in terms of the amount of plant-available nutrients it can supply Finishing (livestock): The process of growing animals to a point they are considered ready for slaughter Fixed Asset: Assets held for use by AWHI rather than for sale or conversion into cash Genetics (livestock): Branch of biology concerned with trait inheritance from parents to offspring – important to use the right animals (male or female) to establish and continue AWHI’s breeding programme Greenfeed: Annual crops, usually cereals, grasses or brassicas, grown for animal feed Gross Revenue: What is earned by AWHI from selling goods and services Hectare (ha): A standard metric measurement of land, 1 ha = 10,000m2 = 2.471 acres. Heifer: Term used to describe a young female cattle beast
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GLOSSARY TE ĀTI HAU OF TERMS TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016
Hogget: A young sheep between a lamb and a 2 tooth, from approx. 10 to 16 months of age Interest: What AWHI needs to pay for the money it borrows from the bank Liability: General term for what AWHI owes Meat Processing: Process of taking live animals, humanely slaughtering them and then breaking down into saleable beef or sheep meat Milk Solids (MS): The valued solid components in milk – at present, milk-fat and protein, expressed as kg MS Net Farm Income: Income earned from farm activities less the direct costs of these activities Net Operating Surplus / (Deficit): Difference between revenue and the costs incurred to earn this revenue. Prime (livestock): Term used to describe animals that are ready for slaughter Provision for Dividend: Allowance for a Dividend distribution to AWHI shareholders Revaluation of Shares: Difference in the market value of shares that AWHI holds in other companies at this balance date compared to the previous year. Revaluation of Livestock: The livestock price movement being the livestock value at year end versus opening values less the amount attributed to change in livestock numbers Soil Moisture Deficit: Deficit between the actual amount of water in a soil versus its water holding capacity Statement of Cash-flow: Shows the cash movements for the year in Operating, Investing and Financing categories Statement of Financial Performance: Shows how well AWHI has performed in its trading activities. Statement of Movements in Equity: Reports the change in AWHI’s ownership interest in the year Statement of Financial Position: A snapshot” in time that reflects where the money has come from (Equity + Liabilities) and how the money has been used (Assets) Stock on hand: Inventory of goods held for resale or for AWHI’s use, including livestock Stock Units: Livestock in NZ are commonly given a “stock unit” (su) value or measure. The basic unit (1 su) is one breeding ewe that weighs 55kgs; bears 1 lamb; and consumes approx. 550 kilograms of dry matter each year. A beef breeding cow is commonly given a value of 6 su. Stock units have a number of uses e.g. to determine how much feed is required; the stocking rate of a farm, etc. Store (livestock): A term used to describe animals destined for “finishing” that are sold off country, which does not have the potential to finish them, to specialist “finishing” operations on easier more productive country Supplements: Additional animal feed often in the form of conserved hay, silage fodder crops (greenfeeds and brassica crops) or concentrates such as grains or meals Term Liabilities: A liability of AWHI which is generally due to be settled more than 12 months after balance date Unclaimed Dividends Due – Te Āti Hau Trust: Funds relating to unclaimed dividends from the previous year which are advanced to Te Āti Hau Trust to invest Weaner: A young animal that has been weaned from its mother’s milk, capable of living completely on pasture Yield (carcass): Proportion of useable (saleable) meat from a carcass expressed as a percentage of total carcass weight Yield (fibre): Proportion of useable fibre present in a quantity of greasy wool expressed as a percentage
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NOTES TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016
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TE ĀTI HAU NOTES TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016
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16 Bell Street, Whanganui 4500, New Zealand Postal Address PO Box 4035 Whanganui 4540 New Zealand