Ātihau-Whanganui Incorporation Annual Report 2021

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H U-W ANGA

AT I

I NU

HA

IN

CO

RPORATI

ON

Toi tu te whenua

ANNUAL REPORT 2021


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Tangi kau ana te ngākau, Ko Roimata, ko Hupe e rere tonu nei Mō kautau kua riro atu. Haere atu rā ki te iwi nui Ki ngā mātua tūpuna i te rangi Okioki mai rā. Huri mai ki tātau, Te mōrehu tangata i te mōrehu whenua E pupuri nei i te ōhāki o ngā mātua tūpuna Toitū te whenua, Toitū te tangata, Toitū te mana He whenua, he tangata Ka puta, ka ora e.

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COVER: Keelan Pehi (Te Ātihaunui-ā-Pāpārangi) works with his sons Malachi and Avril in Ātihau-Whanganui Incorporation's thriving miere (honey) business.

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CONTENTS TOITŪ TE MANA 6

10 11

Ātihau-Whanganui Incorporation Chairperson Report Board Members

Business and Brand Strategy 2021

TOITŪ TE WHENUA 12

CEO Report

18

Partnership with iwi in diverse venture brings multiple benefits

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20 21

Executive Team

Performance at a Glance Performance Highlights

TOITŪ TE TANGATA 22

Te Āti Hau Trust Chairperson Report

26

Summary of Key Trust Financial Information

25 28 29

Te Āti Hau Trust Trustees

Māori Education Trust chips in with big boost for scholars 2020/21 Trust Grant Recipients

ĀTIHAU-WHANGANUI INCORPORATION FINANCIAL STATEMENTS 42

Contents

44

Statement of Comprehensive Income

43

45 46 47 48 68

Shareholding and Committee of Management Disclosures Statement of Changes in Equity Statement of Financial Position Statement of Cash Flows

Notes to and forming part of the Financial Statements Auditors' Report

TE ĀTI HAU TRUST FINANCIAL STATEMENTS 72

Contents

74

Statement of Service Performance

73 75 76 77 78 79 82

Entity Information

Statement of Financial Performance Statement of Financial Position Statement of Cash Flows

Statement of Accounting Policies Notes to the Performance Report Auditors' Report

APPENDIX 84 85

Glossary of Terms Notes

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Ātihau-Whanganui Incorporation CHAIRPERSON REPORT

Mavis Mullins Chairperson

E ngā mate huhua o te tau, Moe mai rā i ngā manaakitanga O te wāhi ngaro, Waiho atu mātou Hei tangi, hei haku mō kautau Kia au te moe.

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Tēnā hoki tātau i runga i ngā āhuatanga o te wā. Ka nui te mihi kau me te aroha nui Ki ngā mana, ki ngā tapu. Nōku te honore nui Kia whārikihia te pūrongo-ā-tau Ki mua tonu i te aroaro. Nau mai, hoki mai Ki tō tātaou Hui-a Tau. Ngā mihi.


TOITŪ TE MANA On behalf of the Board of ĀtihauWhanganui Incorporation, it is a pleasure to present the Annual Report for the 2020/2021 financial year. As in previous years, the report reflects our five strategic pou: Tangata, Whai Hua, Morimori, Mana and Whakapapa (People, Productivity, Care, Value and Brand) and the tenet Toitū te Mana, Toitū te Whenua, Toitū te Tangata – an expression that gives consideration to our purpose, our legacy: to look after nature, so nature can look after us. All of this – everything we do as an organisation – is predicated on the way we see ourselves as an Indigenous, whānau-centred collective set up 51 years ago to protect and preserve our whenua, our interests and our people.

As a Board, we have worked diligently for the past five years on the task of defining the Incorporation’s organisational culture. We have asked hard questions of ourselves to understand our values and evaluate our behaviours. The goal is to apply this mātauranga to policy, systems, processes and everyday practice in both governance and operations. Done well, this foundational element will give strength and clarity to our vision for the wellbeing of land and people. We have called this the AWHI Way, the components of which will be the guiding tenets of our organisation. Some elements have already been applied, such as the development of our

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Ātihau-Whanganui Incorporation CHAIRPERSON REPORT

own brand, enabling Ātihau to tell our own, true story to restaurant owners, chefs and consumers throughout the world. From this strategy also came the appointment three years ago of a Tikanga and Branding Manager to the executive team, ensuring our unique worldview is front and centre in our operational approaches. It has been an amazing journey. Focusing our leadership on building this strategy has kept us on a path to realising the intent of those at the turn of the twentieth century who fought to retain our whenua, and of those five decades ago who worked to bring back opportunity for the tangata whenua of this land. Toitū te Mana The year in review has shown like no other the importance to Ātihau of manaakitanga and whanaungatanga. In trying times, we naturally turn to our alliances, collectives and whānau to protect our interests and help each other get through as best we can. The Covid-19 crisis has underlined this truth. We have set out over the past year to cautiously advance our diversification

and investment partnerships. This includes our relationships with other iwi/Māori, business allies and industry enablers to collectively build our resources, opportunities, and resilience.

"We have never been just farmers; we are caretakers. Legislation is merely catching up with the kaitiakitanga our tūpuna practised."

Examples include our branded or business-to-business partnership programmes: quality food distribution company Foodchain, which takes our brand into high-end Auckland restaurants; the GAP (Global Animal Partnership) welfare programme, which provides access to premiums for heavier lambs; and Angus Pure and the Alliance’s new premium meat product programme Handpicked, a valuable addition to our marketing outreach. We are able to do this not only because of the partnerships we have nurtured, but because our story (our history, our whakapapa and our location) and the care and attention our animals receive adds value and positions our offerings globally as premium products. Our expanding strategic relationships with iwi, post-treaty governance entities and other Māori organisations and trusts are very important developments, already bringing benefit and opportunity for our shareholder whānau.

An example is our relationship with Te Rūnanga o Ngā Wairiki Ngāti Apa. Our partnership in the highly productive Te Hou Farms, west of Bulls, is flourishing – and not just in the business sense. These collaborations add value and are good for our financial bottom line. But equally important is the trust, respect and whanaungatanga that develops between us, making it easy to apply our relationship to problem solving – for example, in finding solutions for our respective honey businesses, with 1,000 Ātihau hives wintering on the coast with Ngā Wairiki Ngāti Apa, and 200 of their hives benefiting from time on our mānuka blocks. I am pleased, also, to see the immediate benefits accruing to many of our educational grant recipients through our new joint venture with the Māori Education Trust – Toitū Kaupapa Māori Mātauranga (MET). It has resulted in the distribution in FY20/21 of an additional $63.8k to grant recipients who meet MET’s criteria. MET has also joined our existing agreement with Victoria University of Wellington – Te Herenga Waka in which every Te Āti Hau Trust education grant to a scholar at Te Herenga Waka is matched dollar for dollar by the partners, tripling the initial value of the grant. Through this tripartite arrangement, MET contributed a further $9,750 in FY20/21 to 13 uri.

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TOITŪ TE MANA Ātihau continues to reach out to all our iwi, hapū, fellow land trusts, settlement entities and Māori organisations to leverage our collective resources and work together to propel, lift and accelerate the wellbeing of our people.

as we respond to climate change. For example, pulling back stock units and doing better with less, and developing the potential of our honey business by planting more mānuka and natives on otherwise unproductive land.

Toitū te Whenua

As we await a mass of legislation (including fresh water, climate change and resource management) that will alter the way agriculture operates, the value of mātauranga Māori in our environmental practices will become increasingly clear to the world. We have never been just farmers; we are caretakers. Legislation is merely catching up with the kaitiakitanga our tūpuna practised.

The development of a Taiao Strategy is almost complete, setting out our commitment to the kaitiakitanga of our whenua. Our mātauranga-led strategy will inform a management framework to ensure our commercial activities are environmentally sustainable. Environmental guru Tina Porou has been engaged to help develop the strategy, which will set an aspirational platinum standard for best practice and establish a mandated position on kaitiakitanga to inform business decisions going forward. In the meantime, we have advanced our programmes of riparian fencing, planting against erosion, and fencing to protect native bush. The fact we are able to report a decent result despite the challenges of this financial year is due in no small part to the work to diversify and better understand our land use capability. Diversification provides resilience and options, and this is particularly important

Toitū te Tangata We have brought a focus to health, safety and wellbeing in the past year, with the appointment of a fulltime advisor to lead the work in this priority area. This is an essential element of the AWHI Way, encompassing what we value, our day-to-day practices, and how we treat people. From this comes the AWHI Promise, focusing on our commitment to the integrity of our product as delivered to our consumers. It is, in effect, a promise to our consumers that our animals, our whenua and our people are well cared for.

In closing, I want to thank our kaimahi, our Board and our chief executive Andrew Beijeman for their care and attention over the past year. After 12 years in this role, I am proud to look back at all we have achieved together. It has been a privilege and an honour to work with such a talented and dedicated team. This will be my last report as chair of the Incorporation. My term comes to an end next year, and as indicated last year, I intend to retire before the term ends. This will allow me to tautoko the transition to a new chair. The way we support and encourage succession is vital, and room must be made to allow the cohort of emerging leaders who are waiting in the wings to step forward. I look forward with excitement to the possibilities that lie ahead for our Incorporation as we strive collectively to add to the legacy left by our tūpuna. Noho ora mai

Mavis Mullins Chairperson

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Ātihau-Whanganui Incorporation BOARD MEMBERS

Mavis Mullins Chairperson

Che Wilson

Keria Ponga

Brendon Te Tiwha Puketapu

Whatarangi Murphy-Peehi

Rāwiri Tinirau

Shar Amner Chairperson Te Āti Hau Trust

INDEPENDENT BOARD MEMBERS Joe Hanita Audit & Risk Committee David Nelson Farm & Environment Committee

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TOITŪ TE MANA

Ātihau-Whanganui Incorporation BUSINESS AND BRAND STRATEGY 2021

Why

Our Purpose.

Toitū te Mana, Toitū te Whenua, Toitū te Tangata

Our Purpose, Our Legacy, is to look after nature, so nature can look after us.

How

How we'll generate value.

Tikanga

Tikanga is our source of legacy and competitive advantage.

What

&

Products and Experiences

Foods Value Propositions Simply the purest foods, raised with wholehearted care.

Other Value Propositions To be developed based on offer and audience.

Our 5 Strategic Pou - our immediate focus areas

Tangata People

Whai Hua Productivity

Growing the mana and wellbeing of our people, partners and customers.

Our Values

Continuously improving through our collective wisdom and creativity.

Morimori Care

Nurturing and protecting all life, and appreciating that all life is connected.

Mana Value

Exploring and bringing higher value products and applications to new and existing markets.

Whakapapa Brand

Building a premium brand through sharing our Tikanga and rich history.

Informing our actions everywhere, every day.

Think creatively, act courageously

Treat people and nature as family

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Ātihau-Whanganui Incorporation CEO REPORT

Andrew Beijeman CEO

Tēnei te mhi kau atu i runga anō i ngā āhuatanga o te wā. Ka nui anō te aroha mai i ngā kaimahi o tō tātau koporeihana. Nōku te honore kia whāriki tēnei pūrongo ki mua i ngā kaihea, i ngā whānau o te koporeihana. E mihi ana.

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TOITŪ TE WHENUA Tēnā koutou katoa. It is my pleasure to present the annual report for the financial year from 1 July 2020 to 30 June 2021. The year was impacted by challenges arising from the Covid-19 pandemic, including ongoing disruption to supply chains and markets. Overseas, lockdowns restricted restaurants from opening, suppressing meat prices. The negative impact continued for the first eight months of the year. Honey sales were also delayed. One of our largest buyers stopped purchasing honey, and other wholesale buyers turned to closely managing their stocks: instead of buying honey straight off the hive, they reverted to shifting honey

supplies held in storage, and only started purchasing again once they had run down their inventory. The resulting jolt to our revenue streams underscored the imperative to manage cashflow effectively. This was achieved through a close focus on cost management and forecasting. Decisions made to protect cashflow included slowing capital development, holding back for a second year on some hill-country maintenance fertiliser, and negotiating a two-year payment period for the latest resumptions. This considered and conservative approach has resulted in a $3.5m net surplus (before finance cost and nonoperating valuations).

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Ātihau-Whanganui Incorporation CEO REPORT

The uncertainty of the times and our fluctuating markets will demand continued caution in the year ahead. However, there are positive signs as the restaurant trade fires up overseas, with current pricing at an unprecedented high. Farming For the third year running, our seven breeding stations, two finishing stations and dairy unit faced a dry summer and autumn, slowing pasture growth. Grasseating Porina and Tasmanian grass grubs presented a challenge in late autumn, requiring immediate attention. If left uncontrolled, these insects can eat as much as livestock and destroy pastures. Farm development continued. For the second year in a row, maintenance fertiliser was not applied to some hill-country farms as a cashflow management tool. Applying this fertiliser and getting soil fertility back to previous levels will be prioritised over the next two years. A shift in focus was made to add weight to lambs rather than buying in additional stores. With the increasing number of dry summers, this strategy reduces risk and allows Ātihau to take full advantage of the GAP (Global Animal Partnership) welfare programme to which all Ātihau farms are now accredited. As a result, fewer lambs were sold, but at heavier weights. Pricing was suppressed due to pandemic responses and the resulting lack of demand. As countries emerged from lockdown later in the year, prices began rising steadily to all-time highs. A total of 89,317 lambs were born (FY19/20 88,568). The number of calves born decreased from 3,606 (FY19/20) to 3,396. Total lamb sales were 65,789 (FY19/20 69,379). Price per kilo dropped 20 cents, but price per head rose from $121.10 to $125.00 because of extra weight. Prime lambs sold at 18.0 kg CW (carcass weight) (FY19/20 17.1 kg CW).

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At 2,409, the number of steers sold was similar to last year (FY19/20 2,377) and average weight was up slightly at 314kg (FY19/20 310kg). Price per kilo was down 27 cents and they fetched $1,727 per head (FY 19/20 $1,792). Our dairy unit achieved record milk production of 252,008 kg/MS (FY19/20 241,006.6 kg/MS), with the farm making good production gains through spring. Apiary Ātihau placed 3,029 hives on the flow during the 20/21 season, producing 87,993kg of honey with an average yield per hive of 29kg (FY19/20 31kg). Total output from the block was 136,047kg (including honey from external beekeepers). A key focus has been securing

improved wintering sites for our hives. Our hives do better when wintering away from the mountain in warmer areas. The search benefited from our relationship with Te Rūnanga o Ngā Wairiki Ngāti Apa, resulting in 1,000 Ātihau hives wintering over in Ngā Wairiki Ngāti Apa forestry blocks. In return, Ātihau has housed 200 Ngā Wairiki Ngāti Apa hives on our mānuka block. More on the partnership can be found on page 18 in this publication. Honey sales proved challenging. Our main buyer, along with others in the industry, stopped buying, deciding to reduce inventory levels as well. Considerable effort was put into finding a new buyer. I’m pleased to report that a new buyer was identified and this has resulted in a $3.7m sales contract


TOITŪ TE WHENUA

$23.3m Total Revenue

"A Health, Safety and Wellbeing Advisor was appointed during the year to lead the development and implementation of our health, safety and wellbeing system."

for the year just ended. This continues to be an area of focus as we look to increase the certainty within our apiary business. The new relationship has been extended, with further sales already negotiated to the end of the 21/22 financial year. Ongoing advance sales put the apiary in a much better position than previously and provides cashflow security. As is usual at the end of the financial year, the season’s remaining 2019/20 stock of honey was valued at market

prices, resulting in a reduction in value of $1.8m. Environmental Demand for mānuka honey continues to shape the development of our apiary business, supported in the past year with the planting of 181ha in mānuka to provide a quality food source for our bees. Kaitiakitanga and our impact on the environment has been a continued focus. An additional 38ha of bush was protected from grazing by 5.9km of new fencing, and 12.7km of riparian fencing

"Pricing was suppressed due to pandemic responses and the resulting lack of demand. As countries emerged from lockdown later in the year, prices began rising steadily to all-time highs."

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Ātihau-Whanganui Incorporation CEO REPORT

adding 2,678ha to the resumption portfolio. To manage cashflow, agreement was reached for payment in two instalments, 12 months apart, one on 30 June 2021 and the other on 30 June 2022. The Marshall brothers will continue to run the properties for the next 12 months, with any honey revenue being shared. Ātihau will place hives on the whenua from the 2022/2023 season onwards. Te Hou The year in review saw the exit of Hew and Roger Dalrymple from the threeway equal partnership with Te Rūnanga o Ngā Wairiki Ngāti Apa and Ātihau in the Te Hou joint venture.

was built to protect our waterways. A further 300 poplar poles were also planted to reduce erosion. People A Health, Safety and Wellbeing Advisor was appointed during the year to lead the development and implementation of our health, safety and wellbeing system. This is an integral part of improving outcomes across the business, and the fulltime appointment will enable a priority focus on this important area. Work continued on defining our organisational culture, the AWHI Way, including defining team values and behaviours. This significant area of development is benefiting from a considered approach and the investment of time. Our shareholder engagement team’s mission to connect shareholder whānau with unclaimed dividends continued in earnest, with the ongoing support of whakapapa and whānau workshops with our kaumātua. At the end of the financial year, Ātihau marked its 50th anniversary with the Whiti Ora dinner, which brought 400 shareholders and whānau together in Whanganui in a fitting celebration of the Incorporation’s remarkable half-century.

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Added Value The focus on initiatives to bring added value to the business and achieve consistent returns saw almost all our prime cattle going into either branded or B2B partnership programmes, either through Angus First or the Alliance’s new Handpicked programme. The Handpicked programme is a good addition to Ātihau’s premium meat product marketing. In the year just ended, 98% of all our prime cattle, steers and heifers made it into a value-add programme, fetching at least 20c more per kilo above the commodity markets (an increase of about $60 per animal). Ātihau achieves high rates of success, with more than 80% of animals achieving the required marbling grading. All Ātihau farms have been accredited to the GAP (Global Animal Partnership) welfare programme, giving access to additional premiums for heavier lambs. Our online honey sales advanced significantly, with 1,788 jars sold (FY19/20 421 jars). Resumptions Blocks previously leased to brothers Kevin and Barry Marshall were resumed,

Ātihau opted not to increase our share in the business and remains a one-third owner of the partnership farm at Bulls. Ngā Wairiki Ngāti Apa has purchased the additional share, and now owns two-thirds of the dairy, blueberry, beef and cropping operation. Te Hou is now operating as a standalone business without external support and employs an operations manager (previously the manager of the dairy farm). Although the blueberries operation has been hit by twisted crown, which has stifled production, the dairy farm continues to perform very well. Financials Total revenue for the 2020/2021 financial year was $23.3m, a decrease on the previous year (FY20/21 $27.2m). This includes the $1.8m devaluation of honey on hand.

"Work continued on defining our organisational culture, the AWHI Way, including defining team values and behaviours."


The year ahead

at $19.8m, just below the previous

As many countries ease Covid-19 restrictions and patrons return to restaurants, demand is increasing and prices are on the rise. Honey contracts are in place, reducing cashflow pressure. The year ahead looks positive.

year’s $19.9m expenditure. The Incorporation achieved a net surplus (before finance cost and non-operating valuations) of $3.5m compared to $7.4m in FY19/20, predominantly due to a reduction in livestock revenue (price) and the writedown in honey valuation. While back on the FY19/20 result, the FY20/21 net surplus tracked just above the FY18/19 figure of $3.2m. Equity increased to $220m and debt reduced by $704,968 from approximately $39.5m to $38.8m.

Reflecting on another tricky but rewarding year, I wholeheartedly acknowledge the tenacity of our dedicated and agile staff in the face of the vagaries of the coronavirus. I also wish to thank the Board of Ātihau-Whanganui Incorporation for its continued support and direction. In closing, I’d like to acknowledge Kevin and Barry Marshall for their open

TOITŪ TE WHENUA

Tight management kept total expenses

approach to this year’s resumptions and for making the process unexpectedly easy. My thanks, also, to Dana Blackburn for his advice and continued commitment to bringing leased land back into the hands of the Incorporation and our shareholder whānau.. Mauri Ora.

Andrew Beijeman Chief Executive Officer

Ātihau-Whanganui Incorporation EXECUTIVE TEAM

Andrew Beijeman Chief Executive Officer

Whetu Moataane Tikanga and Brand Manager

Siwan Shaw Business Manager Farming

Dan Adams Business Manager Apiary

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PARTNERSHIP WITH IWI IN DIVERSE VENTURE BRINGS MULTIPLE BENEFITS A strategic partnership between Ātihau-Whanganui Incorporation (Ātihau) and iwi entity Te Rūnanga o Ngā Wairiki Ngāti Apa is flourishing as the Rangitīkei farm they own together goes from strength to strength.

In 2014, the former agricultural training

until we could develop the capacity and

school Flock House Farm went up for

capability ourselves. And we didn’t have

sale 14km from Bulls, at Parewanui.

the funds available to do it on our own.”

Tangata whenua Ngā Wairiki and Ngāti Apa began looking for potential partners as they went into negotiations to buy the 1224ha farm from AgResearch.

for an experienced farming enterprise with similar values to support the venture and approached Ātihau. The

Ngā Wairiki Ngāti Apa chair Pahia Turia

Incorporation had embarked on its

says finding the right partners was

strategy of diversification and saw the

critical.

joint venture opportunity as a good fit

“There were a couple of things we had

from every angle.

to acknowledge,” Pahia says. “We’d

The third important part of the equation

been away from our land for a good

was the neighbouring fifth-generation

100 years – we weren’t ready to pick up

Dalrymple brothers farming operation,

a large farm and run it on the existing

Waitatapia Station. A three-way equal

skills and expertise we had as an iwi

partnership was created.

entity.

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Ngā Wairiki Ngāti Apa prioritised looking

“We have placed huge value on the

“It was important to partner with

expertise of Ātihau and the Dalrymples,”

someone who did have that expertise

Pahia said.


TOITŪ TE WHENUA

“ITS SIZE, THE RANGE OF SOIL TYPES, AND THE AQUIFERS THROUGHOUT THE DISTRICT MEAN WE CAN BE A BIG PLAYER IN FRUIT PRODUCTION, MILK, CROPS, AND ANYTHING ELSE WE PRODUCE OFF THE WHENUA.” Pahia Turia

Renamed Te Hou and run by a partnership board, the farm is an intensive and diversified agribusiness with cropping, dairy, and beef. Cropping includes maize for grain and silage, potatoes, barley for malting, and it produces 145ha of peas for McCain Foods. A mixture of fertile alluvial river soils and sand country, it has come through six years of development. With more than half of the large farm under irrigation – sand country is particularly fertile when irrigated – Te Hou has diversified further into blueberries grown in tunnel houses. “The farm has worked out well for all the partners,” Pahia says. “Its size, the range of soil types, and the aquifers throughout the district mean we can be a big player in fruit production, milk, crops, and anything else we produce

off the whenua. If you can make it rain

“We also place a lot of value in the

when you need it to, you can grow

partnership itself. The relationship with

anything.” Last summer, the Dalrymple brothers Hew and Roger decided to sell their share, their contribution to the farm’s transformation into a highly-productive and diverse operation roundly acknowledged by the iwi. Ngā Wairiki Ngāti Apa bought the Dalrymples’ share, now holding a twothird interest in Te Hou while Ātihau retains one third. Ātihau chief executive Andrew Beijeman says the investment “is good for us”. “It aligns with our diversification strategy and is returning cash. The land is now flat and has water – you can pretty much do whatever you want on it.

Ngā Wairiki Ngāti Apa has grown to include our respective honey operations, with 1,000 of our hives in their forestry blocks over winter, where it’s closer to the sea and warmer, and 200 Ngā Wairiki Ngāti Apa hives coming to us to get mānuka honey on flow.” The arrangement works well, Pahia Turia says. “It gets really cold up home round the mountain,” he says. “Ātihau were looking for somewhere to winter their hives – they’ve come down here with us. And they’ve made room for our hives on some of their blocks. “It’s that reciprocal relationship. We’re here to help each other be successful, and it’s just worked out great.”

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Ātihau-Whanganui Incorporation PERFORMANCE AT A GLANCE For the Year Ended 30 June 2021

Lambs born

Beef calves born

2017/2018

2018/2019

94,336

95,418

88,568

3,464

3,584

249,172

Milk production

2019/2020

2020/2021

89,317

3,606 3,396

252,008 241,006

226,077

(Kg of milksolids)

87,993 74,041

Honey Production

40,302 22,979

(Kg Ātihau hives)

27,260,624

Total Revenue ($)

21,569,032

23,927,198

20,745,166

Total Expenses ($)

23,355,704

19,862,969

19,863,685

18,507,867

7,397,655

Net Surplus ($) before finance costs and non operating revaluation

3,061,164

3,492,018

3,182,032

219,749,157

Equity ($)

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159,614,522

160,118,407

178,067,045


TOITŪ TE WHENUA

Ātihau-Whanganui Incorporation PERFORMANCE HIGHLIGHTS For the Year Ended 30 June 2021

Milk Production

252,008kg of milk solids up from 241,006kg last year

Lamb carcass weight

Environmental Responsibility

per head up from 17.1 last year

12.7km riparian fencing

18kg

Ave. value per head

$122

$112 (2020)

Total Honey Produced

38ha bush protected from grazing 300 Poplar poles planted

$3.7m

Honey Contracted 136,047 Kg for Sale

Total Revenue

Total Equity

Net Surplus*

$23.35m

$220m

$27.2m (2020)

$178m (2020)

$3.5m $7.4m (2020) *before finance costs and non-operating revaluations

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Te Āti Hau Trust CHAIRPERSON REPORT

Shar Amner Trust Chairperson

Ngā mate o tau kua hipa ake nei, haere atu rā. Okioki mai rā i te wāhi ngaro. Huri mai ki tātau ngā waihotanga o rātou mā, tēnā tātau. Nei rā te whakamānawa atu ki kautau, ā, kia tau iho ko te rangimārie ki runga tātau katoa. Ka nui te mihi.

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During the 2020/21 financial year, the Trust increased its distribution of grants in almost every area of funding, reflecting a considerable increase in applications for support. This change signals a need to review the Trust’s strategic approach and consider the future requirements of our shareholder whānau, particularly in the area of non-tertiary based learning, skills development and general grants, for which applications have escalated significantly. The contribution from the Incorporation to the Trust for the year was $540k, up more than $107k from the $432.8k received in FY19/20. Just over $364k was distributed through 549 gants to advance the education, cultural, health and wellbeing aspirations of those who whakapapa to Ātihau whenua. This was an increase of $78,350 from the previous year (FY19/20 $284.7k), with 120 more grants distributed (FY19/20 429). General grants A total of 195 general grants were approved, up from 131 the previous year. These were valued at just over $142k (FY19/20 $99.3k). Cultural grants more than doubled to $6.3k, with 19 applicants supported as compared with three the previous year. Forty whānau were assisted with koha toward a tangihanga tent, an increase of 12 on the previous year, and sports, art and travel grants increased to $8.1k (FY19/20 6.5k). Support for the 46 marae with connections to the Incorporation has been an ongoing area of focus over

TOITŪ TE TANGATA

It is a pleasure to present the annual report on the performance of Te Āti Hau Trust for the financial year ending 30 June 2021. Te Āti Hau Trust has been the charitable arm of Ātihau-Whanganui Incorporation since 2009, applying funding for charitable, educational, recreational and other purposes that benefit our shareholder whānau.

the year as the Trust considers how best to contribute to maintenance and development needs. Many marae in the rohe are advancing development through a Provincial Growth Fund (now Kanoa) regional economic drive. This work has helped marae understand their future development needs and aspirations, and Te Āti Hau Trust is assessing how best to assist. Under discussion is making support more accessible for all marae, supporting a simple application process, and providing support on a regular basis. More work will be done in the year ahead to finalise the right strategic approach. To that end, we have begun proactive discussions on potential strategic partnerships with other entities, such as Ngā Tāngata Tiaki o Whanganui and Te Whāwhaki Trust, to find effective ways of providing support jointly or collectively. In the meantime, grants to marae almost doubled in the past year with $38.3k going to seven marae (FY19/20 $19.2k for two marae). Funding purpose varies, ranging from infrastructure including water reticulation, to heating, lighting and lawn mowers. The Trust has also noted a sizeable increase in applications from kaumātua for wellbeing assistance (FY20/21 101, FY19/20 77). A total of $77.4k in assistance was provided, up $17.6k on the previous year. While it is unsurprising to see grant applications climb as our shareholders age and the need for support increases (for example, for dental work, hearing aids and glasses), there has been a significant rise in ad hoc applications. The Trust has moved to support this need by improving our response time for kaumātua applications and simplifying the application process. An online application system is to be established as one way of improving access to this support, and Kaumātua Assistance applications are now considered

23


Te Āti Hau Trust CHAIRPERSON REPORT

$364,112 Total Distributed

"To feed the skills pipeline and support a future workforce on our whenua, we must provide support to our rangatahi to consider agriculture-based study as a career pathway." monthly rather than quarterly. All other grants will continue to be considered on a quarterly basis. Educational grants This year, 354 individuals received education grants worth $222k, with an increase in overall grant value of 19.5%. Fifty-six more students were supported than in the previous year. Of those who received a grant, 199 students were studying undergraduate courses (23 more than last year), representing an increase in grant value of $22.6k. Applications from postgraduate scholars increased by 50%, with many more students enrolling in part-time study, and nearly 100 Yr 10 and Yr 11 students received grants – 17 more than the previous year. A recently developed partnership with the Māori Education Trust (MET)

24

is bringing valuable additional grant funding to Te Āti Hau Trust grant recipients who meet MET criteria. MET contributed an additional $63.8k to eligible Te Āti Hau Trust grant recipients for the 2020/21 financial year, increasing the value of their grants by approximately 60%. In addition, a tripartite agreement between Victoria University of Wellington – Te Herenga Waka, MET and Te Āti Hau Trust means every Te Āti Hau Trust education grant to a scholar at Te Herenga Waka is matched dollar for dollar, tripling the initial value of the Te Āti Hau Trust grant. In 2020/21, Te Herenga Waka and MET each contributed $9,750 to match Te Āti Hau Trust grants worth $9,750. The total MET contribution to Te Āti Hau Trust grant recipients during the year was $73.6k.

Strategic approach We have met our strategic intent for the year. Over the past five years, Te Āti Hau has focused on maturing as a Trust and consolidating its processes and systems, including the database of shareholders and descendants. It is now ready to transition into setting strategic direction for the next five years, focusing on Trust development and understanding future needs. The foundational purpose of the Trust – supporting tertiary education – remains relevant, but as mentioned earlier, the Trust must also focus on forecasting future needs, anticipating the requirements of a population that may live longer as well as those of a growing rangatahi demographic as our uri base continues to increase. In the year ahead, we will look to develop a range of initiatives to


TOITŪ TE TANGATA address this task. A wider approach by the Incorporation may be needed to support this major piece of work. One area of concern that must be addressed in the year ahead is the decline in applications for agricultural scholarships. To feed the skills pipeline and support a future workforce on our whenua, we must provide support to our rangatahi to consider agriculturebased study as a career pathway. Acknowledgements Firstly, I would like to acknowledge the breadth and potential impact of the activities, research, learning and development work our grant recipients are undertaking, from Yr 10 students

through to doctoral candidates through to the trusts and committees looking after our marae. The outreach to our shareholder whānau and their descendants stretches across the motu and the scale of what we are able to support, albeit in a small way, is nothing short of astonishing. I want to thank my fellow trustees and the staff of the Ātihau office, each one of whom is driven in their busy and demanding mahi by the purpose of the Trust – to deliver benefit to the people. They do it because they love it, and they see the results. Finally, on behalf of Te Āti Hau Trust, I wish to thank the Incorporation for

its continued support, which, in turn, supports our shareholders and uri. I am thankful for this enabling pūtea, but, in closing, I am setting an aspiration for the Incorporation to increase its dividend to the Trust year-on-year … we are going to need it if we are to continue to enable and assist our shareholder whānau in the years ahead. Ngā mihi maioha

Shar Amner Trust Chairperson

Te Āti Hau Trust TRUSTEES

Shar Amner (Trust Chair)

Whatarangi Murphy-Peehi

Rāwiri Tinirau

Jessica Smith (Independent Trustee)

Aaron Rice-Edwards (Independent Trustee)

25


Te Āti Hau Trust SUMMARY OF KEY TRUST FINANCIAL INFORMATION For the Year Ended 30 June 2021

Places of study Universal College of Learning Massey University Victoria University of Wellington University of Otago Te Wananga o Aotearoa University of Waikato University of Canterbury University of Auckland Te Wananga o Raukawa Toi Ohomai Institute of Technology Waikato Institute of Technology Other (22 Different Tericary & Educational Providers)

46 36 28 22 21 16 14 11 8 6 6 39

18% 14% 11% 9% 8% 6% 6% 4% 3% 2% 2% 15%

NORTHLAND

$2,200 5 Grants

AUCKLAND

$14,150 24 Grants

Areas of study Health & Medicine Te Ao Māori Business Arts Science Law Engineering & Design Education Other Trades Agriculture

59 40 37 34 21 17 13 13 12 5 2

23% 16% 15% 13% 8% 7% 5% 5% 5% 2% 1%

WAIKATO

$15,765

BAY OF PLENTY

$17,464 26 Grants

31 Grants

GISBOURNE

$6,450

TARANAKI

9 Grants

$8,668 15 Grants

HAWKE'S BAY

$6,998

NELSON, MARLBOROUGH, TASMAN

$1,500

12 Grants

WHANGANUI-MANAWATU

$239,695 345 Grants

1 Grant

WELLINGTON

$34,208 54 Grants

CANTERBURY

$11,085 16 Grants

Total grants distribution $364,112 549 grants

OTAGO

SOUTHLAND

$600

2 Grants

26

$4,850 8 Grants


TOITŪ TE TANGATA

Te Āti Hau Trust SUMMARY OF KEY TRUST FINANCIAL INFORMATION For the Year Ended 30 June 2021

General Grants

Education Grants

$142,112

$222,000

195 Total Grants up from $99,337 (2020)

354 Total Grants up from $187,500 (2020)

Postgraduate Grants

Undergraduate Grants

$58,100

Secondary School Grants Y10-11

$121,850

$24,000

up from $99,250 (2020)

up from $19,750 (2020)

48 TOTAL

up from $50,050 (2020)

199 TOTAL

96 TOTAL

Marae

Cultural

$38,321

$6,250

7 total grants distributed

19 total grants distributed

up from $19,193 (2020)

up from $2,850 (2020)

Kaumātua

Sport Art Travel

$77,418

$8,123

101 total grants distributed

28 total grants distributed

up from $59,784 (2020)

up from $6,550 (2020)

27


MĀORI EDUCATION TRUST CHIPS IN WITH BIG BOOST FOR SCHOLARS Recipients of educational grants awarded by Te Āti Hau Trust are reaping the benefits of a new partnership with the Māori Education Trust - Toitū Kaupapa Māori Mātauranga (MET).

MET provides financial assistance to Māori undertaking secondary or tertiary study.

demonstrates the potential value of both an ongoing joint venture with MET and the tripartite agreement.

Following discussion in the later part of the 2020/21 financial year, a jointventure agreement was forged between MET and Te Āti Hau Trust, resulting in the distribution of an additional $63.8k to grant recipients who met MET’s criteria.

“This is a partnership that we need to celebrate and acknowledge. Our conversations last year showed MET is a good fit with Te Āti Hau Trust and the values and principles we work to. Our partnership enhances the distribution and reach for both trusts.

The contribution was in addition to the $107,650 awarded to those students by Te Āti Hau Trust. MET’s contribution increased the value of awards to eligible grant recipients by approximately 60%, taking the overall value of the jointventure grants to $171,475.

“Ātihau uri have benefited from our longstanding scholarship relationship with Te Herenga Waka, which matched our grants to our Victoria University students dollar for dollar. Now, with MET at the table, that contribution is increased.

The 175 recipients of the jointventure awards included Year 10 and 11 students, undergraduates and postgraduates, and medical students.

“We hope our relationship with MET will continue to strengthen as we support a growing number of our uri into tertiary education.”

In addition, a tripartite agreement has been established between Te Āti Hau Trust, MET and Victoria University of Wellington – Te Herenga Waka. The agreement means every Te Āti Hau Trust education grant to a scholar at Te Herenga Waka is matched dollar for dollar by MET and Te Herenga Waka, tripling the initial value of the Te Āti Hau Trust grant.

The Māori Education Trust is the successor to the Māori Education Foundation, established in 1961 to support Māori education. The Trust is supported by the Government to administer scholarships on behalf of donors and bequests. It gave out more than 800 scholarships worth just over $1m last year to secondary school students, those studying for an initial tertiary qualification and those undertaking post-graduate study.

As a result, Te Herenga Waka and MET each contributed $9,750 in FY20/21 to match Te Āti Hau Trust grants worth $9,750 to 13 uri studying at Victoria University. The total MET contribution to Te Āti Hau Trust grant recipients during the year was $73.6k. Te Āti Hau Trust chairperson Shar Amner said the first-year contribution

28

General Manager John Cribb said MET implemented a new relationship framework in April and approached Te Āti Hau Trust immediately. “Te Āti Hau is one of the first land trusts we have built a relationship with. We worked together to bring in the joint-venture concept, and then came

Māori Education

Annual Report

2018 in as a third partner forTrust the tripartite agreement with Victoria University – and we managed to do all of this in the three months between April and the end of the financial year in June.

“With a bit of luck, we’re looking to fund more scholarships this financial year. As we bring more partners on board, we’re looking to go from supporting 800 students last year to 1,500 this year, and that’s all thanks to new partnerships including with Te Āti Hau Trust. “Collaboration and partnership are great – allocating scholarships in this way is an opportunity to support what our various iwi do across the country. The more we get onboard, the further it spreads the resource, which is supported by MET and funded by the Ministry of Education. “With the spread of our current resource, future funding is going to be at a premium to assist all our new partners. MET currently has 40 partnerships, including 11 with iwi and 20 with land trusts and nine sponsors. We aim to have 50 partners on board by the end of June next year.”

“COLLABORATION AND PARTNERSHIP ARE GREAT – ALLOCATING SCHOLARSHIPS IN THIS WAY IS AN OPPORTUNITY TO SUPPORT WHAT OUR VARIOUS IWI DO ACROSS THE COUNTRY.” John Cribb


TOITŪ TE TANGATA

Te Āti Hau Trust EDUCATION GRANTS LIST SPECIAL SCHOLARSHIPS The Trust's recommendations to the Ātihau Board for the following scholarships are accepted: Robin Murphy-Peehi Liam Wooding

$8,000 per year for two years

Ohotū

Jasmine Fraser

$2,000 per year for two years

Lena Kemp

$2,000 per year for two years

Moana Ellis

$2,000 per year for two years

Taylor Hibbard

$2,000 per year for two years

Ātihau-Whanganui Ravensdown Scholarship To be awarded

TE ĀTI HAU TRUST SCHOLARSHIPS PHD Scholarships

Qualification

PhD in Environmental Science ​

$2,250

Justin Brooks

PhD in Physics

$1,500

Leana Barriball

Agriculture Scholarships Ezekiel Anderson (2020)

$

$3,000

Hezakaya Treanor-Metekingi

$1,500

Legacy Hiroti

$1,500

POST GRADUATE & PHD TOTAL: $ 58,100 Recipient

Qualification

Diploma in Nursing Science

600

Jolene Yandall

Diploma - Certificate of Proficiency

700

Michelle Cribb

Masters in Educational Leadership

700

Angela Tahiwi

Certificate in Health Science

750

Angelique Maureen Bainbridge

Masters of Education

750

Damian Peeti

Masters in Professional Practice

750

Donna Lee Stott (2020)

Graduate Diploma in Chartered Accounting

750

Donna Lee Stott (2021)

Graduate Diploma in Chartered Accounting

750

Jolene Yandall

Diploma in Health Science

750

Layce Madams

Masters Degree in Nursing Science

750

Leana Barriball

Environmental Sciences PhD Thesis

750

Lorraine Tyson

HLTH Clinical Pharmacology

750

Maaki Iwa Tuatini

Certificate of Proficiency Arts

750

Marcelus Paki

Certificate in Health

750

Meretini Bennett-Huxtable

Master of Māori & Indigenous Leadership

750

Michelle Cribb

Masters in Educational Leadership

750

Wavell Madams

NETP-Transition to Nursing

Layne Neil Kay

Masters of Plant Biotechnology

1,200

Amiria Paranihi

Masters in Education

1,400

Deanna Haami

PhD Doctor of Philosophy (Psychology)

1,400

Sarah Teki-Clark

Masters in Arts Social Policy

1,400

Tania McDonnell

Masters in Māori & Indigenous Studies

1,400

Tara Ngatai-Broughton

$

750

CONTINUED

29


Te Āti Hau Trust EDUCATION GRANTS LIST

POST GRADUATE & PHD (CONTINUED)

TOTAL: $ 58,100

Recipient

Qualification

Masters in Māori and Indigenous Leadership

1,400

Whakaae Marama Baron

Masters in Māori and Indigenous Leadership

1,400

Alicia Peata Daly

Poutāhū Whakaakoranga

1,500

Asher Katene

Master of Arts/Diploma of Clinical Psychology

1,500

Ashleigh Hobbs

Diploma in Nursing

1,500

Ashleigh Tahiwi

Graduate Diploma of learning and teaching

1,500

Cole Sharland

Masters in Creative Writing

1,500

Elizabeth Meremere

Diploma in Leadership

1,500

Eva Kataraina Ngamanu

Bachelor of Design with Honours & Textile Design Major

1,500

Flynn Matiu Oberderies

Bachelor of Science

1,500

Geoffrey Hipango

Diploma in Kaitiakitanga (Supervision)

1,500

Heni Unwin

Masters of Environmental Science

1,500

Hope Tioro

Masters of Health Psychology

1,500

Justin Brooks

PhD in Physics

1,500

Katarina Morgan

Diploma in Educational Leadership

1,500

Marilyn Davis

Masters of Indigenous Studies

1,500

Mikaere Teki

Diploma in Science & Sport

1,500

Miriama Cribb

PhD in Management

1,500

Moana Ellis

Master of Māori & Indigenous Leadership

1,500

Olive Jonas

Master of Māori Indigenous Leadership

1,500

Olympia Pearl Fazakerley

Graduate Diploma of Arts/Master of Arts

1,500

Poutamakiterangi Hamahona-Taiaroa

Diploma of Learning and Teaching

1,500

Raukurawaihoea Naani Jane Whakaipo Waitai

Master of Māori Visual Arts

1,500

Reweti Piwa Kuka

Graduate Diploma in Teaching

1,500

Sarah Teki-Clark

Diploma in Arts

1,500

Suzanne Maria-Rewa Hepi

Master of Business Studies

1,500

Victory Tia-Makere Jordan Takarangi

$

MEDICAL 4YRS+ TOTAL: $ 8,300 Recipient

Qualification

Bachelor of Medicine & Surgery

1,300

Freeman Meaatarangi Apou

Bachelor of Medicine & Surgery

1,300

Benjamin Ratana

Bachelor of Medicine & Surgery

1,400

Emily-Louise Dixon

Bachelor of Midwifery

1,400

Jasmyn Williams

Bachelor of Medicine & Surgery

1,400

Fiona Louise Kataraina Nicoll

Bachelor of Medicine & Surgery

1,500

Brittany Taylor

30

$


TOITŪ TE TANGATA

Te Āti Hau Trust EDUCATION GRANTS LIST

UNDERGRADUATE TOTAL: $ 121,850 Recipient

Qualification

Business Management

250

Fiona Te Haara

Bachelor of Nursing

250

Tamahauiti Potaka

Bachelor of Commerce & Bachelor of Science

300

Te Awhina May Plumridge

Bachelor of Laws/Bachelor of Arts

300

Anna Lee Ngatai-Broughton

Bachelor of Environmental Science

350

Aroha Kahurangi Sell

Diploma in Business

350

Ashleigh Naomi Edwards

Certificate in Career Preparation Level 4

350

David Marshall

Certificate in Adult & Tertiary Teaching

350

Faith Mataki

NZ Certificate in Business Level 4

350

Hine Moana Potaka

Diploma in Addiction Counselling Level 7

350

Jenna Connors

Bachelor of Law & Bachelor of Arts

350

Jordan Collins-Fore

Graduate Diploma in Environment

350

Kelly Karena

Bachelor of Counselling

350

Mihiata Davis

Bachelor of Applied Business Studies

350

Mona Hartley

Bakery Level 3

350

Neo Roberts

Introduction to Infrastructure Works

350

Robyn Poutini

National Certificate in Health & Well-being

350

Sandra Durston

Bachelor of Business

350

Te Puna Anthony Sellars

Engineering A

350

Jack Potaka

Bachelor of Laws

400

Michelle Balsley

Bachelor of Nursing

400

Nicola Walsh

Bachelor of Laws with Honours & Bachelor of Arts

400

Paris Butters (2021)

Bachelor of Dental Surgery

400

Rio Bell

Bachelor of Commerce

400

Sonny Te Ata Karauria Te Hemapo Vercoe

Bachelor of Civil & Environmental Engineering

400

Te Rua Wallace

Bachelors of Environmental Planning

400

Tibet Ranginui

Bachelor of Fine Arts with Honours

400

Arihia Maria Hartley

Nursing

500

George Langford Miles

Bachelor of Sport and Exercise

500

Haukapuanui Vercoe

Bachelor of Engineering (Honours)

500

Karanga Morgan

Toi Paematua

500

Larissa Tucker

Bachelor of Law of Arts (Te reo Māori major)

500

Luke Enoka

Bachelor of Te Reo Māori

500

Metiria Hinekorangi Doyle

Bachelor of Law & Bachelor of Commerce (Finance)

500

Natayla Peni (2021)

Bachelor of Health Sciences

500

Raukura Doyle

Bachelor of Health and Bachelor of Laws Conjoint

500

Reanna Hogg

Diploma of Business Level 5

500

Sofia Tucker

Bachelor of Arts

500

Susan Vette

Bachelor of Midwifery

500

Te Puawai Wilson-Leahy

Bachelor of Laws

500

Te Wainuiarua Poa

Bachelor of Arts & Bachelor of Laws

500

Terrence Ranginui

Bachelor of Applied Science

500

Vaieshalee Berridges Renata

Bachelor of Nursing

500

Waimihia Maniapoto-Love

Bachelor of Arts Majoring in Māori Studies

500

Crystal Marsh

$

CONTINUED

31


Te Āti Hau Trust EDUCATION GRANTS LIST

UNDERGRADUATE (CONTINUED) TOTAL: $ 121,850 Recipient

Qualification

Bachelor of Commerce: Double Major (Accounting & Māori)

600

Amelia Peni

Bachelor of Animal Science

600

Arama Tuka

Bachelor of Design & Arts Level 7

600

Ashleigh Tahiwi

Bachelor of Science (Physiology Major)

600

Ashley Beard

Bachelor of Laws

600

Atiria Menehira-Mcleod

Bachelors of Applied Management

600

Brodie Karaitiana

Bachelors of Business & Bachelors of Law

600

Brooklyn Bishop

Division of Arts, Law, Psychology & Social Sciences

600

Caitlin Aroha Huria

Health Sciences Year 1

600

Caitlin Fowlie

Diploma in Beauty Therapy

600

Camryn Williams

Bachelor of Laws

600

Casper-Rose Marama

Nail Tech Level 4

600

Celone Tuka

Bachelor of Nursing

600

Christian Tu Kaiora Tinielu Hawira Seanoa

Bachelor of Fine Arts with Honours

600

Cindy Rameka

He pi ka pao level 2 Te Reo

600

Constance Marshall-Waiwiri

Bachelor of Occupational Therapy

600

Darinee Ratana

Certificate in Small Business & Project Management

600

Herena Taylor- Heke

Certificate of Endured Nursing

600

Allandria Te Rina Puna

$

Huki Ana Whaktotopipi Bishop-Williams Bachelor of Applied Management (Accounting)

600

Kayla Waudby

Bachelor of Environmental Planning

600

Kelly Harrison

Te Aupikitanga o te reo Kairangi

600

Kodi Madams

Bachelor of Nursing

600

Leslie Katehane Hiwarau

Bachelor of Humanities

600

Lisamarie Madams

Bachelor of Nursing

600

Luke August

Bachelor of Mechanical engineering

600

Madison Florence

Bachelor of Social Work

600

Marcia Cheryl Ranginui

NZ Certificate in Construction Level 3

600

Megan Fowlie (2020)

Bachelor of Nursing

600

Mollie Tuohy

Bachelor of Criminal Justice

600

Natasha Rose Fowlie (2020)

Bachelor of Nursing

600

Natayla Peni (2020)

Bachelor of Health Sciences (Public Health)

600

Neco Holster-Tocker

Primary Industry Skills L2

600

Netta McNaughton

Bachelor of Arts

600

Noah Blackburn

Bachelor of Law & Commerce

600

Paretao Tipoki Hansen

Bachelor of Health Sciences majoring in Māori Health

600

Renee Lauese (2021)

He Pi Ka Rere

600

Roimata Blackburn

Bachelor of Applied Science

600

Sarah Whitiora Trinder

Whanau Ora

600

Suraya Goss

Bachelor of Arts (Māori Knowledge)

600

Te Kopae Taputoro

Certificate in Waka Ama (Level 4)

600

Te Rangimarie Rangi

Bicultural Social Services

600

Te Rina Porou-Ellis (2021)

Bachelor of Communications

600

Tengaahere Peeti

Bachelor of Nursing

600

Trixie Baker (2021)

He Pii Ka Rere

600

CONTINUED

32


TOITŪ TE TANGATA

Te Āti Hau Trust EDUCATION GRANTS LIST

UNDERGRADUATE (CONTINUED) TOTAL: $ 121,850 Recipient

Qualification

NZ Diploma in Business

600

Uenuku Maru Patea

Te Aho Tatairangi - Bachelor of Teaching

600

Zion Tawaroa (2020)

NZ Diploma in Information technology

600

Aareta Mohi

Te Aho Tatairangi

700

Ally Evelyn Ataria

Bachelor of Design (Honours) Textile Design

700

Amber-Rose Te Huia

Bachelor of Health Science

700

Arasi Taputoro-Filo (2020)

Certificate in Waka Ama Level 4

700

Arasi Taputoro-Filo (2021)

Construction Trade Skills Level 3

700

Atama Kawana John Waitai Ngatuere

Level 4 Music

700

Azarlea Chadfield

Business and Tech Level 4

700

Bailey Marumaru

Diploma in Animation

700

Ben Henare Kidd

Bachelor of Communication Studies

700

Caleb Collins-Fore

Bachelor of Business

700

Camelah Te Huia

Bachelor in Social Science Majoring in Psychology & Human Development

700

Candy Manaia Harrison

Certificate in Beauty Therapy

700

Christina Mcmaster

Heke te rangakura kaiwhakaako

700

Claire Maree Rangiataahua Taipari

Heke Reo 2021

700

Claymore Selwyn

Level 4 in music

700

Cleo Fitzgerald

Heke Mātauranga Māori

700

Cody Hiri

Bachelors Degree

700

Ebony Rangituranga Forde

Bachelor of Creative Industries

700

Emily Bell

Bachelor of Nursing

700

Erana Ngarewa

Bachelor in Primary Teaching

700

Francessca Maslin

Poutuaorongo Reo

700

Hailey Mareikura

Bachelor of Teaching ECE

700

Heleni Misiloi

Bachelor of Nursing

700

Hine Ngarewa

Bachelor of Criminal Justice

700

Huia Wiari

Bachelor of Business Studies

700

Ian Schaef Takarangi

Poutuarongo Reo

700

Isiah Selwyn

New Zealand Certificate in Commercial Barbering

700

Jakob Bell-Kake

Bachelor of Commerce

700

Jendy Leigh Nathan

Diploma in Law

700

Joann Judaline Byles

Bachelor of Humanities

700

Joan-Waetford Taiwiri Menehira

Bicultural Social Services Level 4

700

Joy Marriott

Bachelor of Teaching (ECE)

700

Judith Pene Jones

Bachelor of Applied Management

700

Kaea Raukura

Bachelor of Health, Sport & Human Performance

700

Kaheiana Hansen

Bachelor of Business (Accountant Major, Management Minor)

700

Kapi Siddells

Construction Course

700

Katalina Patelesio

New Zealand Diploma of Enrolled Nursing

700

Kayin Katene

Bachelor of Health Sport and Human Performance

700

Kayzia Goss (2020)

Bachelor of Arts (Māori Visual Arts)

700

Kayzia Goss (2021)

Bachelor of Arts (Māori Visual Arts)

700

Kereru Mako Kairimu

NZCEE Theory Level 3

700

Keryn Coogan

Bachelor of Business

700

Tyra Pene-Herewini (2021)

$

CONTINUED

33


Te Āti Hau Trust EDUCATION GRANTS LIST

UNDERGRADUATE (CONTINUED) TOTAL: $ 121,850 Recipient

Qualification

Bachelor of Architectural Studies

700

Korimako Huia Mako

Bachelor of Teaching

700

Kura Josephine Ratana

Nga Poutoko Whakarara Oranga

700

Lara Rena Maniapoto

Hair Design Year 1

700

Logan Davis

NZ Certificate in Business Level 1

700

Louie McLeod (2020)

Bachelor of Building science

700

Louie McLeod (2021)

Bachelor in Building Science

700

Lucy Brown (2020)

Bachelor of Health Science

700

Lucy Brown (2021)

Bachelor of Health Science

700

Mahinarangi Millar-Potaka

Diploma in Hospitality Management

700

Maia Nikora-Davis

Bachelor of Arts

700

Makayla Kahi

Bachelor of Science Majoring in Biomedical Science

700

Makiya Katene

Bachelor of Arts Education Psychology Major and Māori Studies Major

700

Maria Waitokia

New Zealand Diploma in Business (Level 5) & Human Resource Management

700

Marino Doyle

Bachelor of Engineering

700

Marisse Te Kani-Love

Heke Rangakura-Kaiwhakaako

700

Marsh Thompson

Te Haputanga o te reo

700

Mary Whanarere

Te Aupikitanga o Aotearoa

700

Mattie Taiwhati

Business, Administration & Finance Level 3

700

Maze Thompson-Koro

Bachelor of Business & Laws

700

Megan Fowlie (2021)

Bachelor of Nursing

700

Mya Mataki-Wilson

Bachelor of Engineering (Honours)

700

Nakeisha Race

Bachelor of Nursing

700

Natalia Healey-Forde

Bachelor of Science

700

Natasha Rose Fowlie (2021)

Bachelor of Nursing

700

Orewea Wanakore

Te Ara Reo Māori Level 1 & 2

700

Paia Marumaru

Diploma in Animation

700

Paris Butters (2020)

Bachelor of Dental Surgery

700

Patrice Oliver

Bicultural Social Services

700

Paula Green

Bachelor of Nursing

700

Poipoia Te Taonga Poa

Bachelor of Commerce double major in Finance & Computer Science

700

Puna Whakaata Maniapoto Love

Bachelor of Laws & Arts Conjoint

700

Rangimarie Huriwaka Masters

Bachelor of Nursing

700

Rebekah Butters-Chamberlain

Psychology

700

Renee Lauese (2020)

He Pi Ka Pao Level 2

700

Renee Rynolds

NZ Forestry Management Diploma

700

Roimata Forde

Certificate in Therapeutic & Sports Massage

700

Ruby Pearce

Bachelor of Design

700

Rukuwai Te Weri

Bachelor of Health, Sport & Human Performance

700

Samuel Buckley

Bachelor of Engineering

700

Seanae Marino

NZ Diploma in Enrolled Nursing

700

Seona Healey Forde

Bachelor of Business

700

Shannon Baker Pokotea

He Pii Ka rere

700

Sharna Jones

NZ Diploma in Business

700

Sheldon Pakinga

Certificate Level 3 & Level 4 in fitness

700

Kiana Lawton

$

CONTINUED

34


TOITŪ TE TANGATA

Te Āti Hau Trust EDUCATION GRANTS LIST

UNDERGRADUATE (CONTINUED) TOTAL: $ 121,850 Recipient

Qualification

Bachelor of Commerce

700

Tamsyn Harawira

Professional Face Body & Spa Therapies

700

Te Aratu Ngaire Maihi

Health Sciences Year 1

700

Te Nga o Te Rangi Hartley

NZ Certificate in Security Level 3

700

Te Ngaahere Peeti

Bachelor of Nursing

700

Te Paea Rogers

Bachelor of Nursing

700

Te Pono Tamaki

Bachelor of Arts

700

Te Rina Porou-Ellis (2020)

Bachelor of Communications

700

Timoti Chadfield

Business Administration & Technology Level 4

700

Tony Herbert Te Iwimate

Diploma in Nursing

700

Trixie Baker (2020)

He Pi ka Pao Level 2

700

Tuera Pirikahu

Ngā Poutoko Whakarara Oranga

700

Tyra Jade Alexander

Bachelor of Applied Sciences

700

Tyra Pene-Herewini (2020)

Business Administration & Technology Level 4

700

Whakaaria-Mai Poutini Lawrence

NZ Certificate in Maritime Operations

700

William MacFater

Bachelor of Commerce

700

Willow Helen Singh

Business & Communications (Double major)

700

Winnie Tawaroa

NZ Certificate in Business

700

Wiremu Kingi Hipango

Bachelor of Language (Japanese)

700

Wiremu Nepia

NZ Certificate in Music

700

Zion Tawaroa (2021)

Bachelor of Information & Communications Technology

700

Sophie Tuohy

$

35


Te Āti Hau Trust EDUCATION GRANTS LIST SECONDARY - YEAR 10 ($250) Recipient Akerehanara Tamakehu- Keremeneta Alexander Pahl Blane Edwards-Wanoa Brody Flett Thompson Broughton Paris Ataria Caleb Blackmore Carlos King Carmel Hope Malcolm Conner Chadwick Evangaline McNeill Filiki Taupa'u- Rogan Grace Carston Harley Gardiner Hinewaiatarua Pirikahu-Joseph Isaac John Moroati Sinclair Jai Ngataki-Karehana Jayaiah Dante Tama Ashford Jaydis Hammond Jayla Alexander Jerell-Jamar Taputoro-Filo

Education Provider Te Aho o te Kura Pounamu Hutt Valley High School Cullinane College Taita College Horowhenua College New Plymouth Boys' High School Horowhenua College Cullinane College St Patricks College Wellington St Andrews College Te Kura Kaupapa Māori o Tupoho Baradene College Tauranga Boys' College Cullinane College Taieri College Hato Paora College Otaki College Ruapehu College Dannevirke High School Manukura

Recipient Education Provider Jilyzah Tonihi Whanganui High School Jordan Herewini Palmerston North Boys' High School Kody Tahiwi Palmerston North Boys' High School Kōkiri Hinepaearo Wharakura Te Kura o Kokohuia Maadi Glennys Hihiria Ngamanu Aotea College Marich Young-Moeke Tongariro School Mikaere Cooper Hato Paora Nia Sophina Kataraina Edwards Cullinane College Pia Toia Nganeko Bennett Manukura Rākeinohowhetū Puahiwahiwa Whanganui City College Hawira Raniera Kumeroa TeUa Whanganui City College Reign Winiata Queen Elizabeth College Tamelia Ma'afu Kathleen Whanganui High School Blackburn Te Aomihia McLean-Wanoa Tolaga Bay Area School Te Awa Reyn Baker-Fitzgerald Taumarunui High School Te Awanui Rice-Edwards Palmerston North Boys' High School Tiaana Kaa Rolls St Josephs Māori Girls' School Zane Arizona Lewis Collegiate School

SECONDARY - YEAR 11 ($250) Recipient Education Provider Alexander Nohomai Gallagher St Josephs Māori Girls' School Amy Te Rato Bate Hukarere Girls College Anya Race Freyberg High School Arapeta Reihana Tauhara College Blane Edwards Wanoa Cullinane College Braxdyn Mohaka Christy Tongariro School Carmel Valerie Malcolm Cullinane College Chad Whale Taihape Area School Conner Chadwick St Patricks College Demitri-Cody Pire Anderson Whanganui High School Denva Rawinia Leach Tauhara College Estienne-Jane Boladuadua Te Kura Māori o Porirua Grace Carston Baradene College Hania John Joseph James Ruta Henderson High School Hannah Catherine Huria Kapiti College Isaac Marumaru Manurewa High School Jackson Taye Meyer Mount Maunganui College Jacob Read Whangarei Boys' High School Jahnae Mahina Graham New Plymouth Girls' High School Jasmine Giacon Katikati College Jayden Kingi Siddells Tauhara College Jordez Marshall Flaxmere College Jorzahn McCallum Te Kura o Kokohuia Kade Whitiora Pohe Winiata Queen Elizabeth College Kate Teinaki Tongariro School Kate Vernon Burnside School Kiira Parkinson Tauranga Boys' College Kire Reihana Northland College Ky-mani Tonihi Whanganui High School Mackenzie Pritchard Ormiston Senior College

36

TOTAL: $ 9,500

Recipient Mereana Aniwa Pearce Mia Tahiwi Nani-Rose Sadlier Oceania Marino Oliver Wynen Portia Tonel Afendoulis Quade Tamati Ryan Saskia Martyn Sean Dobbyn Sefululima Emelio Leo Seth Sims Shawnee Cook-Lawrence Stevie Ngatai Te Aroha Healey-forde Te Oka Ngataierua Thmyuisi Fox-Te Rangi Tiaana Kaa Rolls Tiana Aroha Colleen Angus Tiare Thompson-Wymer Tinka Legend Baker Toa-te-Ra Tawhitapou Tomairangi Wharakura Trinity Herewini Tuari Gavin Maxwell Reweti Vincent Rogan Waimarama Sinai Wairere Cook-Lawrence William Dalton Richards- Warbrick

TOTAL: $ 14,500

Education Provider Matamata College Manukura Cullinane College Whanganui City College Christchurch Boys' High School Tauhara College Menzies College Tauhara College Taupo Nui a Tia College Te Kura o Kokohuia Whanganui High School Te Rangi Āniwaniwa Manukura Rotorua Girls' High School Whanganui City College Tauhara College St Josephs Māori Girls' School Whanganui Girls' College Whanganui Girls' College Taumarunui High School Whanganui High School Hato Paora College Whanganui High School Cullinane College Te Kura Kaupapa Māori o Tupoho Whanganui High School Te Rangi Āniwaniwa Ruapehu College


TOITŪ TE TANGATA

Te Āti Hau Trust GENERAL GRANTS LIST CULTURAL TOTAL: $ 6,250 Recipient

Grant Category

Mana Kuratahi Kapa Haka Nationals

250

Waikohu Gray

Mana Kuratahi Kapa Haka Nationals

250

Aumangea Hales-Tamaiparea

Mana Kuratahi Kapa Haka Nationals

250

Ihaka Whanarere

Mana Kuratahi Kapa Haka Nationals

250

Leila Jane Poutini

Mana Kuratahi Kapa Haka Nationals

250

Nevaar Whanarere-Matthews

Mana Kuratahi Kapa Haka Nationals

250

Tiare-Tiana Filipo-Osborne

Mana Kuratahi Kapa Haka Nationals

250

Whitirangi Patea-Matiaha-Tapa

Mana Kuratahi Kapa Haka Nationals

250

Darius Meiha Foster

Mana Kuratahi Kapa Haka Nationals

250

Iyelah-Briez Ellison Rogan

Mana Kuratahi Kapa Haka Nationals

250

Kaiya-Jane Green

Mana Kuratahi Kapa Haka Nationals

250

Liana Edwards

Mana Kuratahi Kapa Haka Nationals

250

Lousheanna Green

Mana Kuratahi Kapa Haka Nationals

250

Moana Taupa'u-Rogan

Mana Kuratahi Kapa Haka Nationals

250

Shayden Rawiri

Mana Kuratahi Kapa Haka Nationals

250

Tyjahlion Marshall

Mana Kuratahi Kapa Haka Nationals

250

Waiora Dixon

Mana Kuratahi Kapa Haka Nationals

Pakaitore Committee

Te Rā o Pakaitore

1,000

Te Wainui-a-Rua Culture Club

Cost of Hosting Club Hui Aranga

1,000

Manaia-Tamatea Gray

$

250

MARAE TOTAL: $ 38,321 Recipient

Grant Category

Replace & Install New Sump

3,321

Ngapuwaiwaha Marae

Blue Seal Gas/Electric Stove

5,000

Opaea Marae

Marae upkeep

5,000

Putiki Marae

Heat pumps for Kaumatua Flats

5,000

Tirorangi Marae

Kitchen Compliance

5,000

Makaranui Marae

Marae upkeep

7,500

Tuhi Ariki Marae

Marae upkeep

7,500

Parikino Marae

$

37


Te Āti Hau Trust GENERAL GRANTS LIST SPORTS, ART & TRAVEL TOTAL: $ 8,123.15 Recipient

Grant Recipient Category Whanganui Under 15 Reps

150

Isabella Kidd

Counties Manukau Touch Assoc

178

Lucas Maihi

Volleyball Inter provincial competition

198

Niki Ngaone Haitana Lawrence

U18 Netball Manawatu rep 2020

200

Isabella Kidd

Counties Manukau Touch Assoc

222.15

Manaia Marshall-Ponga

Whanganui Under 14 Reps

230

Novamarie Plumridge

Whanganui Under 14 Reps

230

Te Moana Hagley

Whanganui Under 14 Reps

230

Akiwa Koro

Whanganui Under 18 Touch team

250

Aria Bannister

Whanganui Swimming Club

250

Awatea Barratt

Whanganui Under 16 Reps

250

Conner Chadwick

National Māori League Tournament

250

Deshaye Hinetekawa Thomson-Laulu

U19 Basketball Nationals

250

Hera Peeti Maihi

NZ Barbarians Tag Football

250

Hera Peeti Maihi

Wellington U16 girls touch team Oct 2020

250

Jaeda Rose Hagley-Tutauha

Whanganui Under 14 Reps

250

Jahnaia Brown

Whanganui Under 14 Reps

250

Jordan Herewini

Manawatu U15 Basketball tournament

250

Maraki Aumua

Under 16 boys Touch

250

Maze Thompson-Koro

Whanganui Under 18 Touch team

250

Oliver Wynen

Canterbury U16 Boys Touch team

250

Paige Taiaroa

Manawatu Basketball Reps

250

Season Wiari

Whanganui Under 16 Touch team

250

Stevie Ngatai

Manawatu Basketball U17 Reps

250

Andrea Williams

Canterbury Women 35's Touch team

485

Rangi Kui

Whanganui Open Mens Touch Representative Team for NZ Bunning National Touch Championship 2021

500

V'Chay-Latrell Wiari Hemopo

NZ Australasian ASA Nationals

Jane Edwards Whanau

Māori Basketball Tournament

Ali Whanarere-Tauri

38

$

500 1,000


TOITŪ TE TANGATA

Te Āti Hau Trust GENERAL GRANTS LIST KAUMĀTUA - HEALTH & WELLBEING (UP TO $1,000) Recipient

Recipient

June Mary McKay

Annasophia Calman

Peter Pauro

Anne MeteKingi

Annette Hawe (2020)9

Carole Jay Ranginui

Makareta Mataki Casey

Cassandra Kathleen Katarina Reid

Flo Farquhar

Chery Maru

Kurai Toura

Christina Karaihi Tapa

Terence Hikaka

Dave Puohotaua

Phillip Tuhinga Reweti (2020)

Dino Te Karere Ashford

Errol Ruruku

Echo Haronga

Angela Sharyn Tioro-Teki

Elizabeh Tira Graham

Mary Joyce Te Haara

Ellen Marina Haami

Tuihana Phillips

Georgina Materina Duncan (2021)

Mary Wakefield (2021)

Gerald Heremia Taputoro

Patrice Robinson

Henare Potaka

Darrel Ashley Hall

Henare Ryder

Lilian Wardlaw

Herehere Patricia Pene

Mere Ruiha Millar

Joseanne Goodhall

Karen Herbert

Josephina Titaha Te Tana Wymer

Michael Kenneth Wardlaw

Judaline Anne Byles

Cedric Chadwick

June Dorothy Hall

Robert Hikaka

Kahukura Venning Edwards

Charmaine Horiwia Puru

Manu Tukapua

Georgina Materina Duncan (2020)

Marcia Williams

Jane Edwards

Margaret Menehira (2020)

Jennifer Bartlett

Margaret Menehira (2021)

Liszette Riripeti Harawira

Mary Wakefield (2020)

Martha Renwick

Mereana Mary Hemopo

Lorraine Dawn Tapa

Patricia Ashford (2021)

Linda Klue

Patrick Matthew Makatea Marino

Emily Campbell

Rangi Taylor

Lance Alfred Teki

Rangi Wilson II

Patricia Ashford (2020)

Rangirea Williams (2020)

Dawn Hatton

Rangirea Williams (2021)

Dale Edwards

Raymond Whakapono Hina

Phillip Tuhinga Reweti (2021)

Rexina Dryden

Te Aroha Hakaraia

Roberston Te Huia

Mangu Karauria Scurr

Te Aroha Tawaroa

Mathew Mataki

Te Huiakama Borell

Joyce Kani

Te Werahiko Nikorima

Judy Pickthall

Teresa Ranginui

Margaret Waitai

Thomas Kopeke

Annette Hawe (2021)

Tommy Ross

Elizabeth Piere Taurua

Turuhia Mohi

Heeni Ranginui

Valma Alexandria Wallace/Warahi

Shona Marama Mako

Vivienne Matthews

Aileen Whakatotopipi Bishop

Vonny Joanne Erena Hawkins

Alan Neil McRitchie

Witerina Cooper

Ruth Erita Carol Hammond

TOTAL: $ 77,418

Angela Lawton (2021)

Angela Lawton (2020)

39


40


Ātihau-Whanganui Incorporation Financial Statements for the year ended 30 June 2021

41


Ātihau-Whanganui Incorporation FINANCIAL STATEMENTS 2021

CONTENTS

42

43

Shareholding & Committee of Management Disclosures

44

Statement of Comprehensive Income

45

Statement of Changes in Equity

46

Statement of Financial Position

47

Statement of Cash Flows

48

Notes to and forming part of the Financial Statements

57

14 Cash and Cash Equivalents

57

15 Trade and Other Receivables

57

16 Stock on Hand

57

17 Biological Assets

59

18 Leases

60

19 Investments in Associates & Joint Ventures

61

20 Property, Plant & Equipment

62

21 Share and Bond Investments

48

1 Reporting Entity

62

22 Intangibles (Emission Trading Units)

48

2 Statement of Compliance and Basis of Preparation

62

23 Borrowings

48

3 Basis of Preparation

63

24 Financial Instruments

48

4 Specific Accounting Policies

64

25 Programmed Property Maintenance

53

5 Critical Accounting Estimates

64

26 Unclaimed Dividends

54

6 Revenue from Contracts with Customers

64

27 Māori Authority Credit Account

54

7 Other Income

65

28 Related Parties

55

8 Gains / (Losses) from Sale of Emission Trading Units

66

29 Contingent Liabilities

55

9 Finance Income

66

30 COVID-19

55

10 Depreciation & Loss on Sale

67

31 Subsequent Events

55

11 Other Operating Expenses

67

32 Commitments for Expenditure

55

12 Equity Accounted Investments

67

33 Capital

56

13 Income Tax

67

34 Reserves

68

Auditors' Report


Ātihau-Whanganui Incorporation SHAREHOLDING & COMMITTEE OF MANAGEMENT DISCLOSURES For the year ended 30 June 2021 Share 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

No. of Shares Held

12 234 283 1,514 4,311 1,646 1,399

0.13% 2.49% 3.01% 16.11% 45.87% 17.51% 14.88%

111,994.52 443,311.12 200,579.20 355,214.41 140,444.13 4,458.14 527.48

8.91% 35.28% 15.96% 28.27% 11.18% 0.35% 0.04%

9,399

100.00%

1,256,529.00

100.00%

Pursuant to s278 (4) of the Te Ture Whenua Māori Act 1993, Balance chartered accountants have verified the equity value per share of the incorporation as at 30 June 2021 is $174.89 per share. They note that this share value includes land based on ratings values. A valuation of land performed by valuers on a market basis may differ from such ratings valuations. Committee of Management - Shareholding CoM members have the following shares in the Incorporation registered in their names as at 30 June 2021. Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau Shar Amner Te Tiwha Puketapu Whatarangi Murphy-Peehi

61.05 1000.00 543.36 3104.35

This schedule does not include shareholdings registered in the name of Trusts of which a CoM member may be a beneficiary. Committee of Management - Meeting Attendance There were nine monthly meetings and one AGM of the Committee during the year. Member's attendance was as follows:

Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau Shar Amner Te Tiwha Puketapu (Audit & Risk sub committee Chair) Whatarangi Murphy-Peehi (Farm sub committee Chair) Sub committee independent members David Nelson (Farm sub committee) Joe Hanita (Audit & Risk sub committee)

Ordinary

AGM

Audit & risk Farm Subcommittee Subcommittee

Other

9 9 9 9 8 9 9

1 1 1 1 1 1 1

4 4 4 7 1

1 6

2 2 -

N/A N/A

1

7

6 -

-

Committee of Management - Remuneration Members were paid fees and travel allowances during the financial year.

Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau Shar Amner Te Tiwha Puketapu Whatarangi Murphy-Peehi Joe Hanita David Nelson

Fees $

Comment

32,000 32,000 58,000 Vehicle provided 32,000 32,000 32,000 32,000 6,400 3,250

43


Ātihau-Whanganui Incorporation STATEMENT OF COMPREHENSIVE INCOME For the year ended 30 June 2021 Note

REVENUE FROM CONTRACTS WITH CUSTOMERS Livestock

6

Milk Wool Apiary

6

OTHER INCOME

2020 $

14,259,880

15,352,504

1,883,228

1,702,024

605,701

914,815

4,532,124

6,840,749

21,280,934

24,810,092

Gain/(loss) from sale of emission trading units

8

119,644

294,581

Finance income

9

42,337

22,623

307,673

377,399

7

1,605,116 2,074,770

1,755,929 2,450,532

23,355,704

27,260,624

EXPENSES Farm working expenses

8,521,492

9,127,009

Employee benefits expense

5,625,632

5,204,545

Rental income Other income TOTAL REVENUE & OTHER INCOME

Depreciation and loss on sale

1,981,310

2,055,981

Repairs and maintenance

924,819

809,841

Governance and shareholder expenses

805,297

769,568

Donations and scholarships

550,500

441,827

Other operating expenses

10

11

TOTAL EXPENSES NET SURPLUS BEFORE FINANCE COSTS AND NON OPERATING REVALUATIONS FINANCE COSTS Interest expense REVALUATION GAINS (LOSSES)

Profit / (Loss) from equity accounted investments

12

Profit / (Loss) due to price changes on livestock Reversal of share investments impairment

1,454,635

1,454,200

19,863,685

19,862,969

3,492,018

7,397,655

(1,556,171)

(1,811,030)

224,130

136,044

3,981,808

(4,049,654)

-

87,872

6,141,785

1,760,887

814,806

1,269,696

NET SURPLUS AFTER INCOME TAX

5,326,979

491,191

OTHER COMPREHENSIVE INCOME Revaluation of share investments

1,149

-

NET SURPLUS / (DEFICIT) BEFORE INCOME TAX Income tax expense - current year movement

13

Revaluation of property, plant & equipment

20

31,966,500

15,767,800

Revaluation of emission trading units

22

7,785,181

2,557,929

Share of gain or (loss) on property revaluation of associates

12

(224,193)

454,898

Income tax relating to items that will not be reclassified subsequently

13

(2,129,135)

(506,439)

TOTAL OTHER COMPREHENSIVE INCOME - GAIN

37,399,502

18,274,188

TOTAL COMPREHENSIVE INCOME

42,726,481

18,765,379

These financial statements are to be read in conjunction with the accompanying notes

44

2021 $


Ātihau-Whanganui Incorporation STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2021 Capital Reserves $ BALANCE AT 1 JULY 2020

PPE Reval Reserve $

Retained Earnings $

ETU Reserve $

24,311,005 116,590,673 27,991,123

9,174,244

Share Reserve $

Total Equity $

- 178,067,045

Dividends paid

-

- (1,005,223)

-

-

(1,005,223)

Transactions with owners

-

- (1,005,223)

-

-

(1,005,223)

Net Surplus after Income tax

-

-

5,326,979

-

-

5,326,979

Other Comprehensive Income - Revaluation of emission trading units

-

-

-

7,785,181

-

7,785,181

- Revaluation of property, plant & equipment

-

31,966,500

-

-

-

31,966,500

- Revaluation of share investments

-

-

-

-

1,149

1,149

-

(224,193)

-

-

-

(224,193)

-

(805,875)

39,147 (1,362,407)

-

(2,129,135)

Total Comprehensive Income for the Year

-

30,936,432

5,366,126

6,422,774

1,149

42,726,481

Imputation credits converted to losses

-

-

(39,147)

-

-

(39,147)

Transfer to Retained Earnings

-

-

1,765,448 (1,765,448)

-

-

- Share of gain (loss) on property revaluation of associates - Income tax relating to items that will not be reclassified subsequently

BALANCE AT 30 JUNE 2021

24,311,005

147,527,105 34,078,328 13,831,570

BALANCE AT 1 JULY 2019

24,311,005

100,874,414 26,471,118

8,653,800

1,149 219,749,157 (191,929) 160,118,407

Dividends paid

-

-

(816,741)

-

-

(816,741)

Transactions with owners

-

-

(816,741)

-

-

(816,741)

Net Surplus after Income tax

-

-

491,191

-

-

491,191

- Revaluation of emission trading units

-

-

-

2,557,929

-

2,557,929

- Revaluation of property, plant & equipment

-

15,767,800

-

-

-

15,767,800

- Revaluation of share investments

-

-

-

-

-

-

-

454,898

-

-

-

454,898

-

(506,439)

-

-

-

(506,439)

Total Comprehensive Income for the Year

-

15,716,259

491,191

2,557,929

-

18,765,379

Transfer to Retained Earnings

-

-

1,845,556 (2,037,485)

191,929

-

Other Comprehensive Income

- Share of gain (loss) on property revaluation of associates - Income tax relating to items that will not be reclassified subsequently

BALANCE AT 30 JUNE 2020

24,311,005

116,590,673 27,991,123

9,174,244

- 178,067,045

A description of the nature and purpose of each reserve is stated in note 34.

These financial statements are to be read in conjunction with the accompanying notes

45


Ātihau-Whanganui Incorporation STATEMENT OF FINANCIAL POSITION As at 30 June 2021 Note

2021 $

2020 $

CURRENT ASSETS Cash and cash equivalents

14

-

97,590

Trade and other receivables

15

4,501,934

2,032,273

Stock on hand

16

8,783,941

8,181,617

Biological assets TOTAL CURRENT ASSETS

17

35,775,906 49,061,780

32,641,449 42,952,929

NON CURRENT ASSETS Property, plant & equipment

20

197,246,285

163,130,774

Right-of-use assets

18

510,162

404,491

Investments in associates and joint ventures

19

9,843,979

10,084,297

Share Investments

21

1,873,805

1,850,224

Intangibles TOTAL NON CURRENT ASSETS

22

13,831,569 223,305,800

9,174,244 184,644,030

272,367,580

227,596,959 -

TOTAL ASSETS CURRENT LIABILITIES Cash & cash equivalents

14

380,032

Borrowings

23

9,000,000

-

Lease liabilities

18

81,000

69,915

2,045,358

1,558,404

423,955

343,178

599,587 12,529,932

549,128 2,520,625

Trade and other payables GST payable Employee entitlements TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Borrowings

23

29,463,750

39,538,750

Programmed property maintenance

25

163,357

266,163

Lease liabilities

18

448,632

348,361

3,023

3,687

LIC Share Liability Unclaimed dividends

26

2,654,715

2,441,257

Deferred tax liability TOTAL NON CURRENT LIABILITIES

13

7,355,014 40,088,490

4,411,072 47,009,289

52,618,422

49,529,914

219,749,157

178,067,045

34,078,328

27,991,123

185,670,829

150,075,921

219,749,157

178,067,045

TOTAL LIABILITIES NET ASSETS EQUITY Retained earnings Reserves

34

TOTAL EQUITY

The Committee of Management of Ātihau-Whanganui Incorporation authorised the financial statements for issue on 24 September 2021. Signed for and on behalf of the Committee of Management:

Mavis Mullins Chairperson 24 September 2021

Brendon Te Tiwha Puketapu Chairman of the Audit and Risk Committee 24 September 2021 These financial statements are to be read in conjunction with the accompanying notes

46


Ātihau-Whanganui Incorporation STATEMENT OF CASH FLOWS For the year ended 30 June 2021 2021 $

2020 $

23,011,306

24,113,771

CASH FLOWS FROM OPERATING ACTIVITIES Cash was provided from: Receipts from operations Interest, dividends and other investments received Grants received

40,839

22,623

546,591

460,410

23,598,736

24,596,804

Cash was disbursed to: Payments to suppliers and employees

19,491,396

19,601,892

Interest paid

1,556,171

1,833,413

Net GST paid

143,664 21,191,231

93,678 21,528,983

2,407,505

3,067,821

194,085

94,824

NET CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds from disposals of property, plant & equipment Investment and Intangibles proceeds and disposals

3,497,500

1,721,500

3,691,585

1,816,324

Acquisition of property, plant & equipment

4,061,013

3,248,140

Purchase of investments

23,432 4,084,445

3,704 3,251,844

NET CASH FLOWS FROM INVESTING ACTIVITIES

(392,860)

(1,435,520)

(1,075,000)

(63,250)

(1,075,000)

(63,250)

Dividends

791,765

721,833

Grants & donations

550,500

441,827

75,000 1,417,265

1,223,577

(2,492,265)

(1,286,826)

Net (Decrease)/Increase in Cash Held Cash at the Beginning of the Year

(477,620) 97,589

345,475 (247,886)

CASH AT THE END OF THE YEAR

(380,031)

97,589

Cash was disbursed to:

CASH FLOWS FROM FINANCIAL ACTIVITIES Cash was provided from: Proceeds from borrowings Cash was disbursed to:

Lease payments

NET CASH FLOWS FROM FINANCIAL ACTIVITIES

59,917

These financial statements are to be read in conjunction with the accompanying notes

47


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021

STATEMENT OF ACCOUNTING POLICIES 1. REPORTING ENTITY Ātihau-Whanganui Incorporation (Ātihau) is registered under the Te Ture Whenua Māori Act 1993 and is incorporated in New Zealand. 2. 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. Ātihau-Whanganui Incorporation is a for-profit entity for the purposes of complying with NZ GAAP. Ātihau qualifies for NZ IFRS (RDR) as it is not a large for-profit 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. 3. BASIS OF PREPARATION The financial statements have been prepared under the historical cost basis except for land & buildings, 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. Historical 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

48

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. The financial statements have been prepared using the significant accounting policies and measurement basis that are in effect at year end as summarised below. These were used throughout all periods presented in the financial statements. 4. 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: (a) Revenue Recognition Revenue from Contracts with Customers Revenue from contracts with customers comprises the expected value for the sale of goods and services, excluding Goods and Services Tax. Revenue is recognised either over time or at a point in time, as follows: Sale of Goods - Livestock Ātihau sells livestock to third-party buyers. The livestock revenue is recognised at the point in time that control is assumed by the buyer, being the date that the animal is killed. The amount of revenue recognised is based on the industryaccepted market price provided by the buyer. Sale of Goods - Apiary Ātihau sells honey product to a third-party buyer. Honey sale revenue is recognised when control

of the goods has passed to the customer, being the point in time that the goods are delivered to the customer. The amount of revenue recognised is based on an agreed price list and is not subject to any variations or warranties. Sale of Goods - Milk Ātihau sells milk to a third-party buyer. The milk revenue is recognised at the point in time that control is assumed by the buyer, being the date of collection. Payment is paid on a per kg milksolids basis based upon the forecast milk price payable. Approximately 85% is received upon collection and the balance is deferred, spread over the months up to September following year end. Sale of Goods - Wool Ātihau sells wool to third-party buyers. The wool revenue is recognised at the point in time that control is assumed by the buyer, being the date the wool is collected, or the date the wool is sold at auction. The amount of revenue recognised is based on the industryaccepted market price provided by the buyer. Other Income 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. The policy for recognition of revenue for Emissions trading units is described in policy (g) below.


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021

(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 impairment. To determine impairment, Ātihau uses a simplified approach to assess its expected credit losses. The impairment loss is recognised in the profit and loss component of the Statement of Comprehensive Income. (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. 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.

are included in the Statement of Comprehensive Income.

Land is revalued every three years to the most recent rateable value (consistent with the requirements of Te Ture Whenua Māori Act 1993). Revaluations to rateable value are considered a departure from accounting standard NZIAS16 because ratings values are general rather than specific revaluations. Revaluations are reflected through Other Comprehensive Income and cumulative revaluations reflected in the PPE Revaluation Reserve.

(e) Income Tax

All other repairs and maintenance are recognised as expenses in the Statement of Comprehensive Income in the financial period in which they are incurred. The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold and leasehold land, is depreciated on a straightline 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. Depreciation rates applied to classes of assets are: Class Land Buildings Bridges Development Improvements Plant & Machinery Furniture & Fittings Motor Vehicles

From 0% 0% 2%SL 5%DV 0% 6%DV 8%DV 6%DV

To 0% 20%DV 20%DV 25%SL 40%DV 40%DV 40%DV 36%DV

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These

Ātihau is registered as a Māori Authority for income tax purposes. Current income tax assets and/or liabilities comprise those obligations to, or claims from, Inland Revenue and other taxation authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by Ātihau and it is probable that reversal will not occur in the foreseeable future. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised

49


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021

to the extent that it is probable that they will be able to be utilised against future taxable income, based on Ātihau's forecast of future operating results which is adjusted for significant non-taxable income and expenses and specific limits to the use of any unused tax losses or credit. Deferred tax liabilities are always provided in full. Deferred tax assets and liabilities are offset only when Ātihau has a right and intention to set off current tax assets and liabilities from the same taxation authority. Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in the profit or loss, except where they relate to items that are recognised in other comprehensive income (such as the revaluation of land) or directly in equity, in which case the related deferred tax is also recognised in other comprehensive income or equity, respectively. (f) Investments Investments in shares have been classified as fair value through other comprehensive income (OCI) for equity instruments. At balance date shares are revalued to fair value and any gains or losses reflected through other comprehensive income. (g) Intangible Assets (Emission Trading Units) Emission trading units have been purchased and earned (ie internally generated) off growing forestry and are considered to have indefinite useful life (as long as the market regulatory framework is not changed significantly). Pre-1990 Forest Land Ātihau land contains pre-1990 forest land subject to the provision of the NZ emissions trading scheme (ETS).

50

If the land is deforested the owner is required to surrender NZ Emission Trading Units (NZUs) 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) Ātihau recognises them initially at cost and revalues them at reporting date through other comprehensive income and reserves. Post-1989 Forest Land Ātihau chose to enter the ETS for post -1989 forest land and earn 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 through comprehensive income and reserves. If the obligation to return units arises the obligation is recognised on the Balance Sheet. Revenue recognition - on derecognition gains or losses from the carrying value relating to the trading of NZUs are reflected in Net Surplus and the carrying value is transferred from revaluation reserve to retained earnings. (h) Financial Instruments Financial assets and financial liabilities are recognised when Ātihau 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 liabilities (other than financial assets and financial liabilities that are fair value through profit and loss) 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 profit and loss are recognised immediately in the profit and loss. Financial Assets Ātihau classifies its financial assets into the following categories: "amortised cost" and "fair value through OCI for equity instruments". The classification depends on the nature and purpose of the financial assets, and is determined at the time of initial recognition and is reevaluated by Management at every reporting date. All transactions are recognised (or derecognised) on trade date basis. Fair value through OCI for equity instrument financial assets held by Ātihau include supplier shares which are issued at $1 and if surrendered are repaid at $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 these financial assets are recognised in net surplus when Ātihau's right to receive the dividends is established. Financial assets recognised at amortised cost are non-derivative financial assets that are held with the objective to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. These financial assets include trade and other receivables, and cash and cash equivalents and


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021

are measured at amortised cost using the effective interest rate, less any impairment.

any provision is presented in the Statement of Comprehensive Income net of any reimbursement.

than direct rights to underlying assets and obligations for underlying liabilities.

Impairment of financial assets: At reporting date Management reviews financial assets for impairment using the expected credit loss model. Any impairment loss is recognised in the profit and loss component of the Statement of Comprehensive Income.

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).

Ātihau's investment in associates and joint ventures are accounted for using the equity method or accounting in the financial statements.

Financial Liabilities

(j) Development Expenditure Development costs are deferred where expenditure is carried out on Ātihau'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.

Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial liabilities. No financial liabilities are held at fair value through profit and loss. 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. (i) 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

Deferred development expenditure is reflected within property, plant and equipment. (k) 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. (l) Investments in Associates and Joint Ventures Associates are those entities over which Ātihau is able to exert significant influence but which are not subsidiaries. A joint venture is an arrangement that Ātihau controls jointly with one or more other investors over which Ātihau has rights to a share of the arrangement's net assets rather

Under the equity method, investments in associates and joint ventures are carried in the Statement of Financial Position at cost plus post-acquisition changes in the share of net assets of the associate and joint ventures. The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise Ātihau's share of the net surplus and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with Ātihau's accounting policies. (m) Biological Assets Livestock are valued at their fair market value. Changes in the value of livestock are recognised in the Statement of Comprehensive Income. Value changes that form part of Ātihau livestock management policies including animal growth and changes in livestock numbers are recognised in the Statement of Comprehensive Income within Revenue. Changes in value due to general livestock price movements are beyond Ātihau's control. These value changes are recognised in the Statement of Comprehensive Income as gain/loss due to price changes on livestock. Bees are measured at fair value less point of sale costs. (n) Dividends Provision is made for the amount of any dividend declared on or before

51


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021

the end of the financial year but not distributed at balance date. (o) Employee Benefit The provision for employee entitlements is recognised as a liability in the Balance Sheet. These benefits include salaries, wages and annual leave. (p) Inventory Inventories are stated at the lower of cost and net realisable value. The cost formula for specific inventory items has been disclosed below: Stock feed on hand is stated at fair value at point of harvest, less costs to realise. Agricultural produce inventory from biological assets is valued at fair value, by reference to market prices for bulk honey and wool, less estimated point of sale costs. Packaged honey is valued at the bulk honey value plus cost of raw materials used. (q) Government Grants Government grants (relating to assets) are deducted in arriving at the carrying amount of the asset. (r) Leases All leases are accounted for by recognising a right-of-use asset and a lease liability except for: • leases of low value assets; and

On initial recognition, the carrying value of the lease liability also includes: • amounts expected to be payable under any residual value guarantee; • the exercise price of any purchase option granted in favour of Ātihau if it is reasonably certain; • any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of the termination option being exercised. Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for: • lease payments made at or before commencement of the lease; • initial direct costs incurred; and • the amount of any provision recognised where Ātihau is contractually required to dismantle, remove or restore the leased asset.

NZ IFRS 16 was adopted 1 July 2019 without restatement of comparative figures. For the impact of the application as at 1 July 2019, see note 18. The following policies apply subsequent to the date of initial application.

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the shorter of the remaining term of the lease or the remaining economic life of the asset.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over

When Ātihau revises its estimate of the term of any lease it adjusts the carrying amount of the lease

• leases with a duration of 12 months or less.

52

the lease term, with the discount rate determined by reference to the rate inherent in the lease. Variable lease payments are expensed in the period to which they relate.

liability to reflect the payments to make over the revised term. An equivalent adjustment is made to the carrying value of the right-ofuse asset, with the revised carrying amount being amortised over the remaining (revised) lease term. If the carrying amount of the right-of-use asset is adjusted to zero, any further reduction is recognised in profit or loss. When Ātihau renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification: • generally, where the renegotiations increases the scope of the lease (whether that is an extension to the lease term, or one or more additional assets being leased), the lease liability is remeasured using the discount rate applicable on the modification date, with the right-of-use asset being adjusted by the same amount • if the renegotiation results in a decrease in the scope of the lease, both the carrying amount of the lease liability and right-of-use asset are reduced by the same proportion to reflect the partial or full termination of the lease with any difference recognised in profit or loss. The lease liability is then further adjusted to ensure its carrying amount reflects the amount of the renegotiated payments over the renegotiated term, with the modified lease payments discounted at the rate applicable on the modification date. The right-of-use asset is adjusted by the same amount. For contracts that both convey a right to Ātihau to use an identified asset and require services to be provided to Ātihau by the lessor, Ātihau accounts for the entire contract as a lease, i.e. it


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021

does allocate any amount of the contractual payments to, and account separately for, any services provided by the supplier as part of the contract. (s) Changes in Accounting Policies and Disclosures There have been no changes in accounting policies during the financial year. 5. CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with NZ IFRS RDR requires the use of critical accounting estimates. It also requires Management to exercise its judgement in the process of applying Ātihau's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant, are disclosed below. Valuation of Livestock Ātihau 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 value of the assets. Valuation of Honey Harvested and Honey on Hand Honey is tested for MGO quality and valued using forecast farmgate prices listed by a significant customer reflecting market value at year end.

53


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 6. REVENUE FROM CONTRACTS WITH CUSTOMERS 6a. Livestock Revenue

2021 $

2020 $

11,160,328

11,389,999

Sales Sheep Cattle

6,033,490

6,397,766

17,193,817

17,787,765

Sheep

(404,010)

(1,274,349)

Cattle

(1,648,961)

(1,659,888)

Total Sales Purchases

Horses Total Purchases Increase / (Decrease) in value due to change in numbers Total Livestock Revenue

6b. Apiary Revenue

-

-

(2,052,971)

(2,934,237)

(880,966)

498,977

14,259,880

15,352,504

2021 $

2020 $

3,703,426

2,100,184

(3,669,332)

(2,032,946)

34,094

67,238

6,331,282

6,773,511

Sales Honey sales Less carrying value of Honey sold Gain on honey sold Other Apiary inventory movements Honey harvested - Bulk Honey revaluation to NRV

Total Apiary Revenue

(1,833,252)

-

4,498,030

6,773,511

4,532,124

6,840,749

Honey harvested is initially valued at fair value less future costs of sale. Fair value is assessed using market comparison (where values are based on the latest market prices) for the type of honey and its UMF factor. At the year end, the carrying value of Honey stock on hand is revalued to Net Realisable Value (NRV) to reflect honey attribution changes and estimated future achievable sales values.

7. OTHER INCOME

Apiary leases Insurance recoveries Rebates received Other income

54

2021 $

2020 $

1,140,931

1,283,608

3,006

71,530

73,489

136,836

387,690

263,955

1,605,116

1,755,929


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 8. GAINS / (LOSSES) FROM SALE OF EMISSION TRADING UNITS 2021 $

2020 $

Gain / (loss) on disposal of emission trading units

119,644

294,581

Total Gains and (Losses)

119,644

294,581

2021 $

2020 $

Dividends received

20,311

12,542

Interest income

21,704

10,081

322

-

42,337

22,623

2021 $

2020 $

1,911,366

1,900,738

Depreciation - Right-of-use assets

59,239

67,844

Loss on sale of property, plant and equipment

10,705

87,399

1,981,310

2,055,981

2021 $

2020 $

23,795

41,199

Accountancy, legal and consultancy

297,204

335,659

Administration expenses

990,602

818,435

Project expenses

143,034

258,907

1,454,635

1,454,200

2021 $

2020 $

224,130

136,044

(224,193)

454,898

(62)

590,942

9. FINANCE INCOME

Imputation Credits Total Finance Income

10. DEPRECIATION & LOSS ON SALE

Depreciation

Total Depreciation & Loss on Sale

11. OTHER OPERATING EXPENSES

Audit Fees

Total Operating Expenses

12. EQUITY ACCOUNTED INVESTMENTS

Share of surplus / (deficit) after tax Property revaluations and other comprehensive income movements (OCI Total (increase) / decrease in Equity Accounted Investments

55


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 13. INCOME TAX 13a. Income tax recognised in profit & loss

2021 $

2020 $

Deferred tax expense/(income) re the origination & reversal of temporary differences

814,806

1,269,696

Total income tax recognised in the current year

814,806

1,269,696

Net Surplus / (deficit) before income tax

6,141,785

1,760,887

Tax at the New Zealand tax rate applicable to Māori Authorities (17.5%)

1,074,812

308,155

(326,463)

(430,829)

- capex and depreciation

(59,600)

(416,081)

- other temporary differences

553,611

184,669

- permanent differences

(308,251)

1,112,864

Adjustments recognised in current year in regard to current & deferred tax of prior years Income tax credit recognised in profit & loss

(119,303)

510,918

814,806

1,269,696

2021 $

2020 $

Deferred tax

(2,129,135)

(506,439)

Total income tax recognised in other comprehensive income

(2,129,135)

(506,439)

2021 $

2021 $

2021 $

Opening balance

Movement in profit & loss, other comp income or equity

Closing balance

(923,454)

(326,463)

(1,249,917)

(2,980,426)

(865,475)

(3,845,901)

70,727

14,511

85,238

1,112,397

(934,109)

178,288

Other

(1,690,316)

(832,405)

(2,522,721)

Total deferred tax liability

(4,411,072)

(2,943,942)

(7,355,014)

The income tax expense for the year reconciles to the accounting profit as follows:

In calculating taxable income the following adjustments were made: Temporary differences - livestock

Permanent differences

13b. Income tax recognised in other comprehensive income

13c. Deferred tax liability Deferred tax assets & (liabilities) in relation to:

Livestock Property plant & equipment Provisions Unused tax losses

56


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 2021 $

2020 $

(385,160)

91,512

5,129

6,079

(380,032)

97,590

2021 $

2020 $

4,346,778

1,992,768

155,155

39,505

4,501,934

2,032,273

2021 $

2020 $

512,510

484,345

31,295

37,369

543,805

521,714

8,051,255

7,394,877

14. CASH AND CASH EQUIVALENTS Cash at bank / (overdrawn) Deposits on call

Ātihau has an overdraft facility of $1,000,000 and a credit card facility of $20,000.

15. TRADE AND OTHER RECEIVABLES

Revenue from contracts with customers Other receivables

16. STOCK ON HAND Raw Materials Feed Apiary raw materials Total Raw Materials Merchandise Honey - bulk Honey - packaged

126,498

93,124

62,382

171,902

Total Merchandise

8,240,135

7,659,903

Total Stock on hand

8,783,941

8,181,617

2021 $

2020 $

17,391,577

18,431,819

404,010

1,274,349

(11,160,328)

(11,389,999)

9,832,066

9,789,263

Wool

17. BIOLOGICAL ASSETS Sheep Balance at the beginning of the year Increase due to purchases Decrease due to sales Biological transformations Changes in fair value

2,956,578

(713,855)

Total sheep on hand

19,423,904

17,391,577

Balance at the beginning of the year

14,559,735

17,070,170

Increase due to purchases Decrease due to sales

1,648,961 (6,033,490)

1,659,888 (6,397,766)

Cattle (Dairy & Beef)

Biological transformations

4,437,209

4,378,878

Changes in fair value

1,015,835

(2,151,435)

Total cattle on hand

15,628,250

14,559,735

57


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 17. BIOLOGICAL ASSETS (CONTINUED) 2021 $

2020 $

672,137

366,470

Bees (Biomass) Balance at the beginning of the year Increase due to hive growth Changes in fair value Total bees on hand Horses on hand Total Biological Assets

35,115

36,892

-

268,775

707,252

672,137

16,500

18,000

35,775,906

32,641,449

Livestock consists of mixed age sheep and cows which are held for dairy and dry stock farming. The units on hand were counted and independently verified by PGG Wrightson (PGG) prior to years end. A fair value valuation of the sheep and cattle was undertaken by S Luoni (employed by PGG). The valuation is based on reference to market evidence of current prices less point of sale costs. PGG is an independent registered valuer not related to Ātihau. The valuers hold recognised and relevant professional qualifications and have recent experience in the category of biological asset they have valued. Bees on hand consist of queen and worker bees. Hive valuations were verified independently by Angela Matthews (Ngāti Apa), in June 2021 on a random sample (approx 30%) of Ātihau hives.Values were based on the size of the hive, and included both biomass (bees) and hiveware components. The biomass component is calculated by deducting the hiveware component from hive value. 2021 Units

2020 Units

MA Ewes

32,431

33,589

2-Tooth Ewes

17,259

17,408

Ewe Hoggets

19,028

19,186

Mixed Lambs

22,584

27,450

1,052

901

Quantity of Sheep on Hand

Breeding Rams MA Wethers

117

69

92,471

98,603

MA Cows

2,239

2,285

R4 Heifers

1,026

971

R3 Heifers

1,354

1,281

R2 Heifers

1,833

1,899

Heifer Calves

1,810

1,956

188

191

Quantity of Beef and Dairy Cattle on Hand

Breeding Bulls R3 Bulls

58

10

15

R3 Steers

788

822

R2 Steers

2,207

2,056

Steer Calves

1,682

1,802

13,137

13,278


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 18. LEASES 2021 $

2020 $

Opening Balance

404,491

472,335

Additions

173,289

-

Ātihau leases land and buildings and the below relates to those asset classes Right-of-use assets

(8,379)

-

Depreciation

Lease variations & term adjustments

(59,240)

(67,844)

Closing Balance

510,162

404,491

Opening Balance

418,276

472,335

Additions

173,289

-

Interest expense

(25,982)

(22,383)

Lease payments

(75,000)

(82,300)

39,049

50,624

529,632

418,276

Lease Liabilities

Lease variations & term adjustments Closing Balance

59


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 19. INVESTMENTS IN ASSOCIATES & JOINT VENTURES 2021 $

2020 $

Ātihau has the following investments in associates & joint ventures: Ownership & Voting

Valuation method

50%

Fair Value

1,007,646

1,011,664

Te Hou Limited Partnership

33.33%

Equity

8,836,333

9,072,634

Te Hou GP Limited

33.33%

Equity

-

-

9,843,978

10,084,297

Papahau Forestry Partnership

Te Hou Limited Partnership is in the business of Sheep, Beef and Dairy farming and is audited. Papahau forestry partnership is a separately structured vehicle whose accounts are unaudited. The primary activity is forest plantation.The Ātihau share of this forest investment is market valued by Stuart Orme, a RMNZIF Registered Forestry Consultant of Woodnet (2005) Limited. Realisation of this investment will require investment in a bridge. Accordingly, the forest valuation has been reduced by 50% of the $2.2m bridge cost estimate (estimated by bridge engineers). 2021 $

2020 $

1,011,664

966,568

(15,499)

41,078

Papahau Forestry Partnership Balance at the beginning of the year Share of surplus / (deficit) Capital contributions Balance at the end of the year

11,481

4,018

1,007,646

1,011,664

9,072,634

8,752,940

Te Hou Farms Limited Partnership Balance at the beginning of the year Share of surplus / (deficit) Revaluations Distributions and other adjustments

60

237,892

90,229

(224,193)

455,122

(250,000)

(225,657)

Balance at the end of the year

8,836,333

9,072,634

Total Investments in Associates & Joint Ventures

9,843,979

10,084,297


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 20. PROPERTY, PLANT & EQUIPMENT

As at 30 June 2021

Class

OPENING Acc Depn

Cost

Freehold Land

113,960,000

Leasehold Land

18,191,000

Improvements Buildings & Bridges

As at 30 June 2020 Bk Value

OPENING Acc Depn

Cost

-

113,960,000

105,230,000

-

18,191,000

11,490,400

Bk Value

-

105,230,000

-

11,490,400

5,384,351

903,332

4,481,019

5,269,969

866,738

4,403,231

18,044,650

2,335,560

15,709,090

17,421,604

2,190,855

15,230,749

Plant & Machinery

3,427,093

1,515,931

1,911,162

3,684,150

1,490,928

2,193,222

Motor Vehicles

3,343,485

1,731,318

1,612,167

3,339,198

1,553,442

1,785,756

Furniture & Fittings Development Uncompleted Capital Works Total Property, Plant & Equipment

945,145

553,117

392,028

852,824

511,505

341,319

25,978,835

19,641,559

6,337,276

24,485,348

18,630,252

5,855,096

189,274,559

26,680,817

162,593,742

171,773,493

25,243,720

146,529,773

537,032

-

537,032

154,231

-

154,231

189,811,591

26,680,817

163,130,774

171,927,724

25,243,720

146,684,004

As at 30 June 2021 Class

Additions

Freehold Land Leasehold Land

Disposals

As at 30 June 2020

Revaluations

-

-

25,507,000

Depn & Amort

-

Additions

Disposals

Revaluations

-

-

8,730,000

Depn & Amort

-

-

-

1,854,500

-

-

-

6,700,600

-

Improvements

115,633

-

-

39,103

114,384

-

-

36,593

Buildings & Bridges

659,361

-

4,605,000

163,251

385,386

69,465

337,200

174,786

Plant & Machinery

570,516

-

-

439,766

522,394

606,783

-

184,381

Motor Vehicles

801,557

194,085

-

410,239

354,697

90,628

-

435,610

93,070

-

-

61,194

56,180

700

-

57,174

908,149

-

-

797,813

1,493,490

-

-

1,012,193

3,148,286

194,085

31,966,500

1,911,366

2,926,531

767,576

15,767,800

1,900,738

1,653,913

537,032

-

-

537,032

154,231

-

-

4,802,199

731,117

31,966,500

1,911,366

3,463,563

921,807

15,767,800

1,900,738

Furniture & Fittings Development Uncompleted Capital Works Total Property, Plant & Equipment

As at 30 June 2021 Class

Freehold Land

Cost

Bk Value

Cost Restated

20,045,500

-

20,045,500

18,191,000

-

18,191,000

5,499,984

942,435

4,557,549

5,384,351

903,332

4,481,019

23,309,011

2,498,811

20,810,200

18,044,650

2,335,560

15,709,090

Plant & Machinery

3,941,398

1,955,396

1,986,002

3,427,093

1,515,931

1,911,162

Motor Vehicles

3,707,418

1,852,815

1,854,603

3,343,485

1,731,318

1,612,167

Buildings & Bridges

Furniture & Fittings Development Uncompleted Capital Works Total Property, Plant & Equipment

-

Bk Value Restated

139,467,000

Improvements

113,960,000

CLOSING Acc Depn

-

Leasehold Land

139,467,000

CLOSING Acc Depn

As at 30 June 2020

113,960,000

953,425

577,735

375,691

945,145

553,117

392,028

26,971,775

20,475,947

6,495,827

25,978,835

19,641,559

6,337,276

223,895,511

28,303,139

195,592,372

189,274,559

26,680,817

162,593,742

1,653,913

537,032

-

537,032

197,246,285

189,811,591

26,680,817

163,130,774

1,653,913 225,549,424

28,303,139

20a. Land was revalued to latest general revaluation performed by Quotable Value Limited as at 15 August 2020 (Ruapehu District Council). The valuation by Quotable Value ('ratings valuation') is considered a departure from accounting standard NZ IAS 16 primarily because ratings valuations are general rather than specific appraisals.

61


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 20. PROPERTY, PLANT & EQUIPMENT (CONTINUED) 20b. In 2021 Grants from Horizons Regional Council, $115,995, Ngā Whenua Rāhui fund, $32,685, and One Billion Trees programme $322,272 were deducted before arriving at capitalised fencing and native tree planting classed as development. (2020: $220,931). 20c. Ātihau has resumed three leases totalling 2,679 ha. On resumption compensation is payable to the lessee based on an agreed value of the lessee improvements between Ātihau and the lessees. The compensation agreed has been included in Uncompleted Capital Works. This compensation has a base value of $1,425,000. The first tranche of $712,500 was paid on 30 June 2021 and the second of approximately $712,500 is due for payment on 30 June 2022 and has been included in accrued payables.

21. SHARE AND BOND INVESTMENTS

2021 Number of Shares

2020 Number of Shares

2021 $

2020 $

Ravensdown

590,784

590,784

590,784

590,784

Fonterra Co-operative Group

193,515

189,764

727,616

709,717

N/A

N/A

500,000

500,000

-

-

55,405

49,722

1,873,805

1,850,224

2021 $

2020 $

9,174,244

7,817,800

RAL Gondola Shares Other share investments Total Share Investments Refer to Note 30 regarding the RAL Gondola Bonds.

22. INTANGIBLES (EMISSION TRADING UNITS) All units are NZUs Balance at beginning of the year

2021 Number of Units

285,802

2020 Number of Units

337,702

Additions (revalued at 30 June)

129,972

8,100

-

25,434

Disposals

(97,441)

(60,000)

(3,127,856)

(1,226,919)

-

-

7,785,181

2,557,929

318,333

285,802

13,831,569

9,174,244

2021 $

2020 $

9,000,000

-

Non-Current

29,463,750

39,538,750

Total Borrowings

38,463,750

39,538,750

171,330,576

140,487,385

35,052,154

31,951,312

206,382,730

172,438,697

Revaluations Balance at end of the year

23. 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 Ātihau. The carrying value of assets pledged as security for borrowings are: Land and buildings Livestock Total pledged assets

62


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 24. FINANCIAL INSTRUMENTS

Financial Assets 2021 Trade and other receivables (GST excl.)

Amortised Fair Value through Cost or Cost Other Comp Income $ $

Total $

4,072,935

-

4,072,935

-

1,873,805

1,873,805

4,072,935

1,873,805

5,946,740

380,032

-

380,032

1,934,155

-

1,934,155

529,632

-

529,632

Borrowings

38,463,750

-

38,463,750

Total Financial Liabilities

41,307,568

-

41,307,568

Investment in shares Total Financial Assets Financial Liabilities 2021 Cash and cash equivalents Trade and other payables (GST excl.) Lease Liabilities

Financial Assets 2020 Cash and cash equivalents

Amortised Fair Value through Cost or Cost Other Comp Income $ $

Total $

97,590

-

97,590

1,904,957

-

1,904,957

-

1,850,224

1,850,224

2,002,547

1,850,224

3,852,771

1,375,501

-

1,375,501

418,276

-

418,276

Borrowings

39,538,750

-

39,538,750

Total Financial Liabilities

41,332,527

-

41,332,527

Trade and other receivables (GST excl.) Investment in shares Total Financial Assets Financial Liabilities 2020 Trade and other payables (GST excl.) Lease Liabilities

63


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 25. PROGRAMMED PROPERTY MAINTENANCE 2021 $

2020 $

Current liabilities - included in Trade and other payables

182,380

176,915

Non current liabilities - Programmed property maintenance

163,357

266,163

345,737

443,078

Ātihau have eight agreements with Programmed Property Services Ltd (the contractor) for an agreed programme of work covering a ten year period. The programme provides for exterior paint of farm buildings and farm houses, with regular maintenance in subsequent years. The agreements have total annual payments of $182,380 (gst excl.) (2020: $176,915). The liability is a best estimate of the actual amount of work performed by the contractor for which the contractor has not been paid at balance sheet date. The liability has not been adjusted for inflation and the effect of the time value of money.

26. UNCLAIMED DIVIDENDS 2021 $

2020 $

-

2,441,257

2,346,348

80

65

1,005,223

816,741

Dividends paid

-

-

(791,765)

(721,833)

Total Unclaimed Dividends

-

-

2,654,715

2,441,257

2021 $

2020 $

Balance at beginning of the year

2021 Cents per share

2020 Cents per share

Dividend declared during the year

-

27. MĀORI AUTHORITY CREDIT ACCOUNT

a) Māori Authority Credit Account balance at the end of the year b) Balance of retained earnings earned prior to 2004.

408,151

414,170

11,582,435

12,587,658

Dividends paid from pre 2004 retained earnings have no Māori Authority Credits attached.

64


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 28. RELATED PARTIES

Payments received or (paid) during the year and amounts receivable or (payable)

2021 $

2020 $

(10,756)

-

37,095

-

-

107,525

26,339

107,525

1,865,557

1,873,883

250,000

225,434

(9,744)

(14,633)

(540,000)

(432,827)

(299,744)

(222,026)

28.1 Key management personnel members and entities where they or immediate family have significant interest Transactions are carried out on terms and conditions no more or less favourable than those which it is reasonable to expect Ātihau would have adopted if dealing with that entity at arm’s length in the same circumstances a) Ngā Waihua o Paerangi (K Ponga and R Tinirau are trustees) Ātihau made payments for water monitoring and room hire. b) Ngā Whenua Rāhui (M Mullins is a trustee) Funds receivable for Fencing R&M and Development. (GST incl) c) StockX Ltd (M Mullins is a board member) Ātihau sold livestock to StockX Ltd Total transactions with entities related to key management personnel 28.2 Key management personnel remuneration Key management of Ātihau are the members of the Committee of Management, the Chief Executive Officer, Finance Manager, Business Manager, People & Safety Manager and the Station Managers. Total key management personnel remuneration 28.3 Amounts receivable or payable at year end The amount from Ngā Whenua Rāhui has not yet been received at year end. Apart from this no other amounts are payable to or receivable from key management personnel or related entities at year end 28.4 Associates and Joint Ventures a) Te Hou LP Ātihau received distributions from Te Hou b) Papahau Forestry Partnership Ātihau paid contribution to partnership expenses for insurance, marketing and rates 28.5 Te Āti Hau Trust Donations to the Trust Ātihau is the settlor of Te Āti Hau Trust and appoints three of the five trustees (two are Independents). The results of the Trust are not consolidated Total transactions with Associates & Joint Ventures

65


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 29. CONTINGENT LIABILITIES

2021 $

2020 $

a) Contingent liabilities arising from the Emissions Trading Scheme (ETS)

29,769,159

19,103,866

Total

29,769,159

19,103,866

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 affected land is insured against forest fire.

30. COVID-19 The COVID-19 pandemic had a material impact on the financial performance of Ātihau in the year ending 30 June 2021 due to reduced product pricing. This has in part been caused by reduction in market demand, and an increase in the costs of getting product to market. Ātihau continues to monitor and take proactive steps in the management of the effects of the COVID-19 pandemic and challenges of new variants. This includes: •

Weekly monitoring of product prices against budget forecasts.

Adjusting sales and purchase decisions to mitigate the impacts of potential future lockdowns on production.

Adjusting expenditure patterns to mitigate the impact of potential future lockdowns on liquidity.

Ensuring precautions are in place to limit the spread of Covid 19 within and between business units

Current and forecasted product prices have not decreased enough to place into doubt the ability of Ātihau to continue as a going concern. In 2019 Ātihau invested $500,000 in Ruapehu Alpine Lifts Gondola Bonds (RAL). RAL operate ski fields on Mt Ruapehu and RAL directors advise that while guest numbers are ahead of last year, the company financial position remains challenged. RAL has agreed extended banking terms with their bank until 30 November 2022 subject to final negotiations.

66


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021 31. SUBSEQUENT EVENTS Apart from the continuing effects of Covid 19, there have been no material subsequent events after year end (2020: Nil)

32. COMMITMENTS FOR EXPENDITURE

2021 $

2020 $

Acquisition of share investments

50,153

58,004

Total commitments

50,153

58,004

There is a commitment to purchase 50,153 Alliance Group Ltd shares to fulfill shareholding requirements. This amount will be deducted from future livestock sales to Alliance Group.

33. CAPITAL Number of shares (fully paid)

2021 Number

1,256,529

2020 Number

1,256,529

These shares have no par value and share equally in dividends paid.

34. RESERVES Retained Earnings Retained Earnings comprise Ātihau's accumulated net profits less dividends paid. Capital Reserves Capital Reserves represent realised capital profits predominantly arising from Crown grants. PPE revaluation reserve The property plant equipment revaluation reserve arises mainly on the revaluation of land and buildings. When revalued property plant or equipment is sold, the proportion of the 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 or surrendered, the proportion of the reserve that relate to those units are transferred to retained earnings. Share Reserve The Available For Sale share reserve represents unrealised revaluations of share investments.

67


INDEPENDENT AUDITORS REPORT To the Shareholders of Atihau Whanganui Incorporation Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Atihau Whanganui Incorporation (the Incorporation) on pages 44 to 67, which comprise the statement of financial position as at 30 June 2021, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the possible effects of the matters described under the Basis for Qualified Opinion section, the accompanying financial statements present fairly, in all material respects, the financial position of the Incorporation as at 30 June 2021, and its financial performance and its cash flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR). Basis for Qualified Opinion As disclosed in the accounting policy (d) on page 49 to the financial statements, the land and buildings are reported at the latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial Reporting Standards – NZ IAS 16 Accounting for Property, Plant & Equipment, which, when the revaluation model is chosen for property, plant and equipment, require such assets to be stated at fair value at the date of the revaluation less any subsequent accumulated depreciation and impairment losses. We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Committee and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other than in our capacity as auditor we have no relationship with, or interests in, the Incorporation. Committee Members Responsibilities for the Financial Statements The Committee Members are responsible on behalf of the Incorporation for the preparation and fair presentation of the financial statements in accordance with NZ IFRS RDR, and for such internal control as the Committee Members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

68


Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2021

In preparing the financial statements, the Committee Members are responsible on behalf of the Incorporation for assessing the Incorporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Committee Members either intend to liquidate the Incorporation or to cease operations, or have no realistic alternative but to do so. Auditors Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A detailed description of the auditors’ responsibilities including those related to assessment of risk of material misstatement, evaluation of appropriateness of going concern assumptions and determining key audit matters are available on the external reporting Committee website: http://www.xrb.govt.nz/standards-for-assurance-practitioners/ auditors-responsibilities/audit-report-8/ Report on other Legal and Regulatory requirements The Share Register and Index of Shareholders required by Section 263 of the Te Ture Whenua Māori Act 1993, has been compiled and correctly kept by the Incorporation. Restriction on Distribution or Use This report is made solely to the Shareholders, as required by section 277 of the Te Ture Whenua Māori Act. Our audit has been undertaken so that we might state to the Incorporation’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Incorporation Shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.

Cameron Town Silks Audit Chartered Accountants Ltd Whanganui, New Zealand Date:

24 September 2021

69


70


Te Āti Hau Trust Financial Statements for the year ended 30 June 2021

71


Te Āti Hau Trust FINANCIAL STATEMENTS 2021

CONTENTS 73

Entity Information

74

Statement of Service Performance

75

Statement of Financial Performance

76

Statement of Financial Position

77

Statement of Cash Flows

78

Statements of Accounting Policies

79 Notes to the Performance Report 79 1 Analysis of Revenue 79 2

Analysis of Expenses

80 3

Property, Plant & Equipment

80 4

Trust Capital

80 5

Accumulated Funds

81 6

Related Party Information

81 7

Tribal Purposes

81 8

Commitments

81 9

Contingent Liabilities and Guarantees

81 10 Events Occurring After Balance Date 81 11 Goods and Services In Kind 81 12 COVID-19 82

72

Auditors' Report


Te Āti Hau Trust ENTITY INFORMATION For the year ended 30 June 2021 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

Te Āti Hau Trust aims to support shareholders, uri and Māori communities from the rohe to pursue their aspirations and full potential in accordance with the trust deed.

Address

35 Drews Avenue, WHANGANUI 4500

Trustees

Appointed by Ātihau-Whanganui Incorporation ("Ātihau") Shar Amner (Chairperson) Whatarangi Murphy-Peehi Rāwiri Tinirau Independent Trustees Aaron Rice Edwards Jessica Smith

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. The Te Āti Hau Trust board comprises of five trustees, three are members from the Ātihau-Whanganui Incorporation Committee of Management and two independent members which are appointed in accordance with the trust deed.

Beneficiary

Ātihau Shareholders & Stakeholders

Main Sources of Entity's Cash and Resources

Tribal purposes grant from Ātihau approved annually at the Ātihau Annual General Meeting.

GST

Not Registered

Accountants

Balance Chartered Accountants Limited Chartered Accountants 16 Bell Street Whanganui

Auditor

Silks Audit Chartered Accountants Whanganui

Bankers

Bank of New Zealand Whanganui

Solicitors

Horsley Christie Whanganui

IRD Number

102-612-817

Registered Charity Number

CC41172

The Trustees are pleased to present the approved Performance Report including the historical Performance Report of Te Āti Hau Trust for the year ended 30 June 2021. For and on behalf of the Trustees:

Shar Amner Trust Chairperson 17 September 2021

Whatarangi Murphy-Peehi Trustee 17 September 2021

73


Te Āti Hau Trust STATEMENT OF SERVICE PERFORMANCE For the year ended 30 June 2021 Description of Trust's Outcomes Te Āti Hau Trust was estabilished in 2009 as a charitable arm of Ātihau 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 Māori 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 objectives. The grants are made under the following guiding principles: Mātauranga Education Kotahitanga Unity of Purpose Manaakitanga 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

Grants Made Actual 2021 $

2021 Numbers

Actual 2020 $

2020 Numbers

8,123

28

6,550

19

Cultural

6,250

19

2,850

3

Marae

38,321

7

19,193

2

-

-

2,610

2

General Grants Sports Art and Travel

Community Tangihanga tent

12,000

40

8,350

28

Kaumātua Assistance

77,418

101

59,784

77

Total General Grants

142,112

195

99,337

131

121,850

199

99,250

176

Education Grants Tertiary - Undergraduate Medical

8,300

6

9,700

7

Secondary School - Year 10 and 11

24,000

96

19,750

79

Post Graduate

58,100

48

50,050

32

Agriculture

6,000

3

-

-

PHD

3,750

2

6,000

3

-

-

1,000

1

222,000

354

185,750

298

Balance / Deloitte Total Education Grants

These financial statements are to be read in conjunction with the Notes to the Financial Statements and the accompanying Auditors Report.

74


Te Āti Hau Trust STATEMENT OF FINANCIAL PERFORMANCE For the year ended 30 June 2021

Note

2021 $

2020 $

Donations, fundraising and other similar revenue

1

540,000

432,827

Other Revenue

1

29

-

Interest, dividends and other investment revenue

1

86

88

540,115

432,915

Revenue

Total Revenue Expenses Grants and donations made

2

363,091

284,741

Costs related to providing goods or service

2

10,111

15,328

Volunteer and employee related costs

2

12,135

8,999

Other expenses

2

86

826

Total Expenses

385,423

309,893

Surplus/(Deficit) for the Year

154,692

123,022

These financial statements are to be read in conjunction with the Notes to the Financial Statements and the accompanying Auditors Report.

75


Te Āti Hau Trust STATEMENT OF FINANCIAL POSITION As at 30 June 2021

Note

2021 $

2020 $

Accumulated surpluses or (deficits)

5

315,878

161,186

Trust Capital

4

Accumulated Funds

100

100

315,978

161,286

Bank accounts and cash

479,349

215,222

Total Current Assets

479,349

215,222

Property, Plant & Equipment

-

281

Total Non-Current Assets

-

281

479,349

215,503

Creditors and Accrued Expenses

163,372

54,217

Total Current Liabilities

163,372

54,217

Total Liabilities

163,372

54,217

Total Assets less Total Liabilities (Net Assets)

315,978

161,286

Total Accumulated Funds Assets Current Assets

Non-Current Assets

Total Assets Liabilities Current Liabilities

These financial statements are to be read in conjunction with the Notes to the Financial Statements and the accompanying Auditors Report.

76


Te Āti Hau Trust STATEMENT OF CASH FLOWS For the year ended 30 June 2021 'How the entity has received cash and used cash'

Cash Flows from Operating Activities

2021 $

2020 $

540,000

432,827

Cash was received from: Donations, fundraising and other similar receipts Interest, dividends and other investment receipts Total Cash was received from:

86

88

540,086

432,915

Cash was applied to: Payments to suppliers and employees

(24,837)

(28,899)

Donations and grants paid

(251,345)

(272,078)

Total cash was applied to:

(276,182)

(300,978)

263,904

131,938

Receipts from sale of property, plant and equipment

224

-

Total Cash Flows from Investing Activities

224

-

264,128

131,938

Cash and cash equivalents at beginning of period

215,222

83,284

Net change in cash for period

264,128

131,938

Cash and cash equivalents at end of period

479,349

215,222

Total Cash Flows from Operating Activities Cash Flows from Investing Activities Cash was received from:

Net Increase/ (Decrease) in Cash Cash Balances

These financial statements are to be read in conjunction with the Notes to the Financial Statements and the accompanying Auditors Report.

77


TE ĀTI HAU TRUST STATEMENT OF ACCOUNTING POLICIES For the year ended 30 June 2021

Statement of Compliance and Basis of Preparation Te Āti Hau Trust is eligible to apply Tier 3 PBE Accounting Requirements: Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit) PBE SFR-A (NFP), 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.

78

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 accrued, gross of refundable tax credits received. b) Expenses Expenses have been classified by their business function. Grant expenses are recognised when approved by the trustees. c) Property, Plant & Equipment Property, plant and equipment is recognised at cost less aggregate depreciation. Historical cost includes expenditure directly attributable to the acquisition of assets, and includes the cost of replacements that are eligible for capitalisation when these are incurred. All other repairs and maintenance are recognised as expenses in the Statement of Financial Performance in the financial period in which they are incurred.

Depreciation has been calculated using rates appropriate to spread the cost of the asset less any residual value over its useful life. 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. d) Income Tax The Trust has charitable status and is exempt from income tax. e) 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. f) Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on a basis consistent with those from the previous performance reports.


Te Āti Hau Trust NOTES TO THE PERFORMANCE REPORT For the year ended 30 June 2021 1. ANALYSIS OF REVENUE

2021 $

2020 $

Ātihau Tribal Purposes Distributions

540,000

432,827

Total Donations, fundraising and other similar revenue

540,000

432,827

Gain on Sale of Fixed Assets

29

-

Total Other Revenue

29

-

Interest Income

86

88

Total Interest, dividends and other investment revenue

86

88

2021 $

2020 $

528

5,360

Donations, fundraising and other similar revenue

Other Revenue

Interest, dividends and other investment revenue

2. ANALYSIS OF EXPENSES Costs related to providing goods or services Administration Bank Fees

45

81

Charities Commission

51

Committee Expenses

1,659

310

Consulting, Accounting and Audit Fees

7,763

9,151

66

374

10,111

15,328

General Expenses Total Costs related to providing goods or services

51

Grants and donations made Grants - Post Graduate

58,100

50,050

Grants - PHD

3,750

6,000

Grants - Agriculture

6,000

-

Grants - Medical

8,300

9,700

Grants - Secondary Yr 10 and 11

24,000

19,750

Grants - Tertiary - Undergraduate

121,850

99,250

Grants - Community

-

2,610

Grants - Marae

38,321

19,194

Grants - Kaumatua Assistance

77,418

59,784

Grants - Sport, Art and Travel

8,123

6,550

Grants - Cultural

6,250

2,850

Grants Returned/Recovered Grants - Balance Deloitte Tangihanga Koha

(1,021)

(346)

-

1,000

12,000

8,350

363,091

284,741

Trustee Fees

12,135

8,999

Total Volunteer and employee related costs

12,135

8,999

86

-

General Fees

-

711

Depreciation

-

115

86

826

Total Grants and donations made Volunteer and employee related costs

Other expenses Loss on Disposal of Fixed Assets

Total Other expenses

79


Te Āti Hau Trust NOTES TO THE PERFORMANCE REPORT For the year ended 30 June 2021

3. PROPERTY, PLANT & EQUIPMENT Property, Plant & Equipment 2021

Office Equipment GDPro Database Software Filing Cabinet

Opening Carrying Amount $

Purchases/ Depreciation (Sales or & Disposals) Impairment $ $

Closing Carrying Amount $

59

(59)

-

-

195

(195)

-

-

HP Laptop case and configuration

13

(13)

-

-

Microsoft Office and Remote User Networks

14

(14)

-

-

Total Property, Plant & Equipment

281

(281)

-

-

Property, Plant & Equipment 2020

Opening Carrying Amount $

Purchases/ Depreciation (Sales or & Disposals) Impairment $ $

Closing Carrying Amount $

Office Equipment GDPro Database Software

119

-

60

59

Filing Cabinet

224

-

29

195

HP Laptop case and configuration

26

-

13

13

Microsoft Office and Remote User Networks

27

-

13

14

396

-

115

281

2021

2020

100

100

2021

2020

Total Property, Plant & Equipment

4. TRUST CAPITAL Trust Capital Total Trust Capital

100

100

5. ACCUMULATED FUNDS

80

Opening Balance

161,186

38,164

Accumulated surpluses or (deficits)

154,692

123,022

Total Accumulated Funds

315,878

161,186


Te Āti Hau Trust NOTES TO THE PERFORMANCE REPORT For the year ended 30 June 2021

6. RELATED PARTY INFORMATION Related party matters arise with respect to Ātihau, in that under the terms of the Trust Deed three appointed trustees are also members of the Ātihau Committee of Management and Ātihau is the settlor of the Trust. Annual grants are received from Ātihau, and Ātihau previously advanced unclaimed dividends to the Trust. During the year there were administration services provided to the Trust by Ātihau on an in-kind basis. 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.

7. TRIBAL PURPOSES Ātihau annually distributes funds to the Trust which is then distributed for charitable purposes. During the year $540,000 was granted. (2020: $432,827).

8. COMMITMENTS The Trust has no commitments as at 30 June 2021. (2020: Nil).

9. CONTINGENT LIABILITIES AND GUARANTEES The Trust has no contingent liabilities and no guarantees as at 30 June 2021. (2020: Contingent Liabilities Nil. Guarantees Nil.)

10. EVENTS OCCURRING AFTER BALANCE DATE There have been no significant events since balance date.

11. GOODS AND SERVICES IN KIND During the year there were administration services provided to the Trust by Ātihau on an in-kind basis.

12. COVID-19 On March 11, 2020, the World Health Organisation declared the outbreak of a coronavirus (COVID-19) pandemic. As a result, ongoing economic uncertainties have arisen which could negatively affect our operations and services due to the restrictions imposed to prevent the spread of the virus. The New Zealand Government announced a COVID-19 nationwide lock down on 17 August 2021. When the financial statements were approved by the Trustees on 17 September 2021, different restrictions were in place across the country. The Trustees had not had an opportunity to determine the full financial impact of the COVID-19 pandemic that may affect Te Ati Hau Trust prior to this meeting.

81


Te Āti Hau Trust NOTES TO THE PERFORMANCE REPORT For the year ended 30 June 2021

INDEPENDENT AUDITORS REPORT To the Trustees of Te Āti Hau Trust Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Te Āti Hau Trust (the Trust) on pages 74 6 toto15, 81,which which comprise the statement of financial position as at 30 June 2021, and the statement of financial performance and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Trust as at 30 June, and its financial performance and its cash flows for the year then ended in accordance with Public Benefit Entity Simple Format Reporting Standard – Accrual (Not-For-Profit). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Trust in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other than in our capacity as auditor we have no relationship with, or interests in, the Trust. Other information The Trustees is responsible on behalf of the Trust for the other information. The other information comprises the Entity information and Statement of Service performance but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based, on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. -16-

82


Trustees’ Responsibilities for the Financial Statements In preparing the financial statements, the Trustees are responsible on behalf of the Trust for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so. Auditors Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of the auditors responsibilities for the audit of the financial statements is located at the External Reporting Board’s website at: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/auditreport-8/

Cameron Town Silks Audit Chartered Accountants Ltd Whanganui, New Zealand Date: 17 September 2021

-17-

83


GLOSSARY OF TERMS

Accounts Receivable: Money owed to AWHI from customers at year end, also known as Trade Debtors

Hogget: A young sheep between a lamb and a 2 tooth, from approx. 10 to 16 months of age

Accounts Payable: Money owed by AWHI to suppliers of goods or services at year end, also known as Trade Creditors

Interest: What AWHI needs to pay for the money it borrows from the bank

Accrued Income: Income earned by AWHI where cash has yet to be received

Meat Processing: Process of taking live animals, humanely slaughtering them and then breaking down into saleable beef or sheep meat

Accrued Expenses: Expenses incurred by AWHI where cash has yet to be paid Asset: Anything owned by AWHI to use in generating income

Milk Solids (MS): The valued solid components in milk – at present, milk-fat and protein, expressed as kg MS

Balance Date: Term used to describe the end of AWHI’s financial year - 30th June

Net Farm Income: Income earned from farm activities less the direct costs of these activities

Brassica: The plant family which includes turnips, swedes, rape, kale, cauliflower, cabbages, etc.

Net Operating Surplus / (Deficit): Difference between revenue and the costs incurred to earn this revenue.

Capital Stock: The breeding stock on AWHI farms that produce revenue or trading stock to generate income

Prime (livestock): Term used to describe animals that are ready for slaughter

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

84

Liability: General term for what AWHI owes

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 usable (saleable) meat from a carcass expressed as a percentage of total carcass weight Yield (fibre): Proportion of usable fibre present in a quantity of greasy wool expressed as a percentage


NOTES

85


NOTES

86


NOTES

87


H U-W ANGA

AT I

I NU

HA

IN

CO

RPORATI

ON

Toi tu te whenua

35 Drews Avenue Whanganui 4500 New Zealand Postal Address PO Box 4035 Whanganui 4540 New Zealand


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