He Korona Whakataena 2015-2016

He Korona Whakataena

twenty fifteen - twenty sixteen

E te Iwi tēnā koutou katoa Tēnā tātau i runa o nā maimai aroha o te tau.

Tēnā tātau i roto o nā whakamātautau o te wā, te aroha kia mau Mokopuna-Pākeke, Whānau-Hapū, Iwi-Tanata, Mātua-Tamaiti.

Haere, hoatu ana tēnei te paena tau, nau mai whakatata mai ana ko te tau hou ko nā korona whakataena a te Poari ko; • Te hāpai i Te Mana Motuhake o Tūhoe • Te kōkiri tikana e hānai tonu ai nā kaupapa a Tūhoe - Te Uru Taumatua • Te tautoko i te whakakahatana ake o nā Taraipara katoa • Te whakaari i nā kaupapa mai waho e tūpono mai ana ki te Iwi • Te manaaki i te tahua pūtea a te Iwi. Ka tika tērā kōrero e kii rā “Ko tō tātau orana ko te nui tanata, ko tā tātau mahi he whakakotahi i te kōrero, he whakatutuki i te mahi”.

Kia tau te ora kia tātau.

Nāku nei

Tāmati Kruger, Tiamana

He Korona Whakataena

1

Contents 3

Our Year

.......................................................................................................................................................................................................................................

Our responsibility for our Tūhoe futures

4

Our capability and development

8

............................................

........................................................................................

Our commitment to Tūhoetana

..............................................................................................

12

Our confidence in our direction

16

Our Tūhoe Assets

19

........................................................................................

............................................................................................................................................................................

Financial Statements

........................................................................................................................................................

PHOTOS: Cover, 1, 2, 6, 14, 22 - Birgit Krippner

21

Our Year...

Together your Iwi tari, Tūhoe - Te Uru Taumatua, and the Tūhoe Tribal Authorities review the lessons from the previous year in the mahi that was experienced, counted and witnessed.

He tanata whakamoe tau, he Iwi whakamoe tau.

Your annual report He Korona Whakataena weaves the threads across the mahi completed and consolidates here for your reflection. At the fore of our activities is the restoration and permanency of Tūhoetana.

In this wrap up of the year gone we guide your gaze across four development areas that together underpins our mahi. Our choices and options have grown since the last financial year, so how capable and confident are we feeling now? More importantly, how are we feeling more responsible for our Tūhoetana?

Establishing ethics underpins this years He Korona Whakataena. Our actions and decisions are guided by Tūhoetana themes of responsibility, capability, commitment and confidence.

We realise the patience that lays ahead to bring the Blueprint to life, and the persistence needed to strengthen Te Mana Motuhake o Tūhoe. As we reflect upon an eventful year, we see how our actions now will have an effect on the development of the next generation. Growing an interdependent and confident Tūhoe is our desire, and our commitment to Tūhoetana.

“

How are you contributing?

”

He Korona Whakataena

3

Our responsibility for our Tūhoe futures Our responsibility for our future rests upon the choices we make today. We continue to look to our past while carefully selecting expertise in diverse areas of finance and investment, environmental conservation, welfare, culture, heritage and leadership to help guide us into the future.

A range of operational planning approaches for Te Urewera were implemented by the Ōnukurani Team with a focus on maintaining the current level of operations within Te Urewera while transforming the Department of Conservation - Tūhoe relationship; planning for a baseline stocktake to measure a Tūhoe sense of the ‘health’ of Te Urewera; and raising the leadership and capacity of Tūhoe Tribal-Hapū.

The Iwi Team supported 12 Tūhoe tamariki and ranatahi facing Child Youth Family Service (CYFs) care to live with responsible whānau (Hapū) members. Support for Tūhoe tamariki and ranatahi in CYFs care is only the beginning of a proposed welfare system the implementation of a welfare system in Ngāi Tūhoe remains a priority.

This period the Whairawa Team developed the Mātohatoha Model a Tribal development framework to provide for the allocation of funds.

Supporting the Manawarū Tribal, we connected fibre internet to Ruatāhuna. In partnership with Te Urewera Board, Wairoa District Council, Whakatāne District Council and NZ Transport Agency we formed a working group to advance the sealing opportunities of Te Urewera Road - State Highway 38 from Murupara through to Wairoa. Opus International was commissioned to investigate sustainable sealing options as an alternative to bitumen, the primary binder used in road construction. An interim Tūhoe Education Contributions initiative to assist Tūhoe in their learning was also delivered.

Your Iwi processed

231

applications for the Tūhoe Education Contributions.

4

TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Age range of applicants

8 - 67 years

Tūhoe Education Contributions total distribution:

$111,300 The establishment of the Tūhoe Manawarū Tribal Authority operational team and office enabled capacity and capability to coordinate and achieve its spatial plan initiatives. Complimented by its Governance, reorganising Marae delegates and their knowledge, saw the establishment portfolio areas: Hauora, Education, Economic Development, Environment, Cultural Values, and Leadership. This has allowed Tūhoe Manawarū Tribal delegates to meet more frequently working with whānau, Hapū to set a clearer strategic direction for future development initiatives.

Coming to understand the new environment of post-settlement, structural changes and the implementation of on-the-ground development and growth has been challenging, yet more importantly, rewarding on many levels.

Te Waimana Kaaku Tribal Authority is learning to work with it while maintaining our own uniqueness, presenting a more positive approach to progress.

To understand the health needs of their whārua, Te Komiti o Runa Tribal Authority, investigated the meaning of ‘hauora’ from a Rūātoki perspective. Through ongoing discussion and debate, the Tribal have clarified and defined what this means. We continue to research ways in which to revitalise ronoa to include in the Tāneatua Medical Centre and facilitate health wānana. The Tribal successfully implemented the recycling initiative ‘para kore’ at Te Ahurei o Tūhoe and Mātaatua Regional Kapa Haka competition.

The Waikaremoana Tribal Authority progressed a case for a Ngāti Ruapani mandate to settle raupatu issues. Community hui to discuss ‘Ko wai a Ruapani?’ was led by the Waikaremoana Tribal Authority to initiate an open dialogue amongst the whānau and Hapū.

The contribution concept means different things to different whānau.

“

Tangihanga, unveiling, I helped build Te Kura Whare.

To be honest, I haven’t been involved or contributed toward my marae, Hapū or Iwi, but I would like to be involved in the near future.

Alongside my whānau, I played a crucial part in the Christchurch earthquake response, helping distribute 3,000 parcels to both Tūhoe and the community during the recovery.

Nā kaupapa a Tūhoe. Ōna tini āhuatanga ka whakahaerehia ki roto ki waho rānei i te rohe pōtae.

He Korona Whakataena

5

6

TŪHOE - Te Uru Taumatua | twenty fifteen - twenty sixteen

PORTFOLIO INVESTMENT Investment in Portfolio Millions

200 180 160 140 120 100 80 60 40 2 -

March 11

May 10

March 12

March 13

March 14

March 16

March 15

PIE MARKET VALUE, $172m PIE INVESTED VALUE, $139m

FINANCIAL PORTFOLIO RETURNS ON INVESTMENT

The Investment Committee is responsible for advising the Trustees on Investments including Financial Portfolio. The Statement of Investment Policy and Objectives (SIPO) is our TĹŤhoe principle-based working document that identifies an investment strategy and sets the controls for risk management.

12%

10%

8%

6%

PIE PERFORMANCE Millions

200

4%

2%

150

0%

-2%

-4%

100 2011

2012

2013

2014

2015

2016

Return on Investment (Nett) Benchmark *simple interest - after tax, fees & inflation

Since the inception of the financial portfolio the returns have been representative of the global financial markets. Along the way we have seen very good years as well as weak years which is to be expected for any long term investment strategy. Overall the strategy has performed well against its benchmark during this time and has contributed to a growth in the balance sheet of TĹŤhoe.

50

0 2011

2012

2013

2014

2015

2016

Market Value Invested

He Korona Whakataena

7

Our capability and development Our capability continues to gain new ground as we identify priorities, and develop strategies to move forward. Themes of timing, training and decentralisation have influenced our decision making this year. The skills and services of Tūhoe - Te Uru Taumatua begin to transfer out to the Tribals, growing our leadership capacity.

This year the Anamata Team offered internships to University students of Tūhoe descent. Of real value to the students was the ability to enhance their academic pursuits with the view to bringing

this capability home to their Iwi. Development opportunities in library information and management systems as well as communications were a feature of the permanency mahi this year.

PATRICE LEAF (Ngāti Koura) interned for six weeks with Tūhoe Te Uru Taumatua to deliver a social media project spotlighting Tūhoe memories of the ‘Tūhoe Ahurei’. On completion she returned to the University of Auckland to complete her undergraduate degree, Bachelor of Arts - Māori Studies.

TE ŌKIWA MCLEAN (Te Whānau Pani, Hāmua, Ngāti Tāwhaki) completed an internship with the Communications team of Tūhoe - Te Uru Taumatua for his degree of Bachelor of Māori Development - Media Studies. He went on to gain employment with TVNZ as a reporter for Te Karere.

Four Tūhoe Tribal Biodiversity Managers have been appointed to each whārua. Temporarily located at Te Kura Whare and working within the Ōnukurani Team, they will learn and assist with the style and approach of delivering operational mahi in Te Urewera.

TOM BROWN Tribal Biodiversity Manager - Waimana

8

TE KAHU APIATA Tribal Biodiversity Manager - Rūātoki

TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

BROWN ELIA Tribal Biodiversity Manager - Waikaremoana

ANTHONY TE KURAPA Tribal Biodiversity Manager - Ruatāhuna

The Iwi Team achieved the first Housing New Zealand (HNZ) sale. Sale processes for properties on Ahuwhenua land were designed in partnership with Tribals and HNZ, to support the best possible outcomes for Tūhoe whānau wishing to purchase their homes. A Kaumātua Housing Assessment process and system was designed and transferred to Tūhoe Tribal Authorities for trialling.

The Mou Mou Kai Café is in its second year of operation with a new cafe manager appointed with the assistance of the Whairawa Team.

The former District Health Board building in Tāneatua was purchased. A plan to retrofit the house with the Living Building Challenge principles begins. The purchase of Matahi Forest enables the return of historically significant lands to Tūhoe ownership. Crown owned school properties purchased under the settlement agreement were leased back to Ministry of Education - Tāneatua School, Tawera Bilingual School, Waimana School, Te Wharekura o Rūātoki, and Te Kura Mana Māori o Matahi.

The developed conceptual designs for the Ruatāhuna wharehou - Te Tii - and a new medical centre for Tūhoe Manawarū Tribal Authority is underway with construction works to commence early 2017. For the moment the Mātaatua Marae redevelopment is on hold until Te Tii is in progress. In anticipation of the construction, operating the services and with the support of Tūhoe - Te Uru Taumatua, innovative steps to provide workforce development have been discussed for resourcing. The Tribal initiated tourism workshops with established whānau ventures and other key stakeholders.

This allowed a change of role emphasis for our Tourism Coordinator to focus on our ranatahi.

Te Waimana Kaaku Tribal Authority developed a positive relationship with Anamata Private Training Establishment, to increase our pool of skilled trades people. The Tūhoe carpentry course was established earlier this year, with ten Te Waimana men commencing their journey into pre-trade training.

Te Komiti o Runa Tribal Authority embedded it’s office and operational infrastructure. Financial systems and policies are in place, Tribal policies are developed, and staff recruitment is complete.

The relationship between the office of Te Komiti o Rūna and Hapū delegates is clarified, and Te Komiti o Runa reporting to Hapū confirmed.

Waikaremoana Tribal Authority has worked on its’ Tribal structure. A chairman was appointed, delegates representing ngā Hapū o Waimako, Te Kuha me Pūtere were appointed.

A General Manager, Financial Administrator, Service Management Plan Advisor, Project Co-ordinator, Communications Advisor and a Financial Advisor were recruited to deliver on the Waikaremoana spatial priorities.

He Korona Whakataena

9

TRIBAL DEVELOPMENT AND GROWTH BUDGET ALLOCATION 2014-16

Waikaremoana Building 4.8m Ruatāhuna Building 8m Waimana Building 2m Rūātoki Building 2m Te Urewera 1.85m Tribal Infrastructure 6.21m Education Grants 400k Tribal Development 5m

Along with empowerment and participation, capacity-building is an essential element of sustainable development. The budget allocation has been included for infrastructure development, while supporting education that enables opportunity for developing skills and leadership that is needed for Tribal development and growth.

10 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

He Korona Whakataena 11

Our commitment to Tūhoetana Our commitment to Tūhoetana is the foundation for everything that we do. Discussion and debate of weaving together Tūhoe practices with current trends is key. We revolutionise our Tūhoe values and beliefs to adapt to an ever increasing globalised world.

Your redesigned Tūhoe Rēhita – Nation, administered by Anamata Team is fully engaged to meet the demographic data and information needs of Tūhoe - Te Uru Taumatua and readied to transfer Tūhoe whakapapa to enable a Tribal led Rēhita.

Tūhoe Tribal Authorities attended the world premiere of the films ‘Ever the Land’ and ‘The Price of Peace’, an occasion to facilitate and encourage whanaunatana between Tribals so that Tūhoetana is heard, seen and felt. The Rina Raweke art workshops encouraged the creative and playful arts and crafts for our tamariki.

Tribal build concepts display brings to the fore a respectful approach to living within the constraints of nature balanced by desires for Hapū development and prosperity. The 2015 He Iwi Whakamoe Tau whānau day recognised the momentous year that was completed. We supported Te Hui Ahurei a Tūhoe to reconnect you to your mauna, your awa, and your Tūhoetana.

Our Marae with the highest number of registered Tūhoe goes to

WAIKIRIKIRI MARAE

There are

We loaded more heritage kaupapa into Te Wharepuri, the Ngāi Tūhoe website, social media, the e-pānui and other communication channels to reflect the strong interest Tūhoe and manuhiri have in your history and traditions.

We strengthened our protocol relationships with government heritage agencies - Alexander Turnball Library, National Library and Archives New Zealand to grow our access to Tūhoe heritage items and material held by these agencies; we understand strategies that bring heritage to life to attract public interest, participation and interaction; and, share best practice on infrastructure systems and processes.

9108

people registered on your Tūhoe Rēhita - Nation.

Our oldest Tūhoe person is youngest is

1009

96 years

and our

5 months on the Tūhoe Rēhita.

12 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

A significant move towards a Te Urewera led management structure was achieved with the secondment of 35 staff from Department of Conservation to Tūhoe - Te Uru Taumatua, creating a more diverse team with a broader set of skills for the Ōnukurani Team. We now have full responsibility for biodiversity health of Te Urewera.

Forums of engagement with Ministers and Crown officials are remoulded by Iwi Team to a sharper outcome orientation, including Ranatira to Ranatira Forum, Directions Group and Implementation Group. Tūhoe-wide education statistics are identified, and a Tūhoe Community of Learning initiative developed. We progressed a leading role in piloting future care and protection of vulnerable children with Tribals and Ministry of Social Development leadership. The pilot work is planned to get underway mid 2017.

Pakeke wānanga in Ruatāhuna have emerged ‘Nā Karawa o Ruatāhuna’, a revived name for our roopu pakeke, supported by Tūhoe Manawarū Tribal Authority. Monthly wānanga are no longer, rather they meet fortnightly, not on the marae, but in the heart of the Tūhoe Manawarū Tribal Authority office. This allows the Operations Team and Tribal Delegates to intimately share and critique Tribal progress, together with a continuing focus on Tūhoetana values and principles.

It was a bit slow at the beginning, but now there is more focus on what’s needed to be done.

IAN TE POU (Ngāti Raka, Ngāi Tamatuhirae) Ōnukurani Kaimahi

Growing our Ōhiwa connection helped reignite whakapapa relationships. Te Waimana Kaaku Tribal Authority celebrated the development of our pā who renovated their wharenui and others who began the planning process for their rebuilds.

Te Komiti o Runa supported Rūātoki Hapū to assess common characteristics and qualities of Tūhoe leaders, in order to develop wānana and activities that strengthen Tūhoetana and leadership.

The Waikaremoana Tribal Authority commitment to biodiversity saw us meeting with stakeholders - Wairoa District Council, Hawkes Bay Tourism, Genesis Energy, Fish & Game, Department of Conservation, Hawkes Bay Regional Council and other stake holders to discuss strategies for the betterment of Te Urewera and Waikaremoana.

Since my secondment I find we’re thinking more about how people can contribute to Te Urewera.

WIPATENE MASON (Tamakaimoana, Ngāi Tamatuhirae) Ōnukurani Kaimahi

He Korona Whakataena 13

14 TŪHOE - Te Uru Taumatua | twenty fifteen - twenty sixteen

The Short Story MADE:

$25.3m

Investments • Associates & Subsidiaries Operations • Includes $9.9m asset appreciation expected to be realised in the short term, but excludes $11m CNI asset appreciation not expected to be realised within the short term.

USED:

$11.5m

Annual Priorities • Operations • Tax and Depreciation Governance Fees: Chair $54k, Trustees $18k each

RETAIN:

$13.8m

Tribal Development • Infrastructure Projects Investment

MADE

USED

Dividend ACE Trading Lease & Rental Service Provision Business Receipts Grants & Koha Asset Valuation

8%

Group - Direct Cost

5%

Interest Income

30%

Workforce

15%

Investment Income

4%

Governance

30%

CNI Distribution

Resources Communication

1%

3% 2% 8%

Portfolio Management

3%

6%

Depreciation

3%

Donation and Grants

1%

26%

Tax

1% 3%

Impairment

2%

Professional Fees

3% 1%

Insurance

2%

Utilities

39%

Other Running Costs

1% 3%

He Korona Whakataena 15

Our confidence in our direction Developing through uncomfortable growing pains, we persist and develop poise. Maintaining our focus on a better tomorrow, we embrace ambiguity and find innovative ways to enhance our resiliency, sustainability and self-sufficiency. Our confidence in our direction is evident in our pride, unity and presence as an Iwi. An operational approach was implemented at Waikaremoana by the Ōnukurani Team, looking to practice and understand potential goodfit options across Te Urewera. This included the amalgamation of Tribal and Department of Conservation staff working within Tūhoe - Te Uru Taumatua, a representation of creating a unified delivery approach to Te Urewera operations.

Enrolments to the Tūhoe Medical Centres (Tāneatua, Waimana) grew from 726 to 1131.

Patient consultations increased from a monthly average of 317 across the Doctor and the Practice Nurse, to 319 for the Doctor alone.

The Kaupapa Māori Advanced Nurse Service (KMANS) started with a caseload of 27 whānau with chronic health conditions which increased 285% to a caseload of 77 whānau. Our Practice Nurse gained approval as a vaccinator, enabling the medical centre to offer flu vaccinations.

Tribal-led whārua planning priorities created our first ever Tūhoe Tribal Economic Development Plan. Tribal capacity, infrastructure and leadership is strengthened and regulated. Planning frameworks and milestones are now regulated creating the template for the coming year.

Tūhoe Fisheries Quota Limited inducts three new directors - Rameka Tuhaka (Ngāti Mura, Hāmua, Te Whānau Pani), Victor Hape (Tūranga Pikitoi), Kero Te Pou (Tamakaimoana). Distribution of Pātaka Kai is now managed by all four Tūhoe Tribals giving better access to Tūhoe MaraeHapū. Tūhoe interest on the Central North Island Board (CNI) is overseen by Te Hau Tutua (Hāmua) and Brian Takurua (Ngāti Koura).

Kaināroa permits processed for the year

ENROLMENTS AT TŪHOE MEDICAL CENTRES 1200

SEVENTY ONE

1025

850 Kaināroa hunting permits continue to be administered by Tūhoe - Te Uru Taumatua for Tūhoe whānau.

675

Mar 16

Feb 16

16 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Jan 16

Dec 15

Nov 15

Oct 15

Sept 15

Aug 15

July 15

June 15

May 15

April 15

500

A standard management system is implemented across the Tūhoe - Te Uru Taumatua and Ōhana subsidiaries. Two additional investment managers are appointed to manage parts of the Tūhoe Trust Fund; they are New Zealand Asset Management and ANZ. The Waikaremoana build adopts sustainable build practices learnt from Te Kura Whare and is being considered for future builds and projects. Te Kura Whare is sought out by groups as a visionary example of architecture to raise community pride and identity in the present and for the future; University of Waikato, University of Auckland - Rākau Ture, Massey University, University of Otago, Manukau Institute of Technology, University of Otago, Trident High School, NZEI Te Riu Roa, Bay of Plenty Polytechnic - Carpentry, Whakatāne Probus, and Kawerau Probus.

Spaces inside Te Kura Whare are booked for meetings and functions by external groups, some being - Bay of Plenty Regional Council, Waiōtahi Contractors, Whakatāne District Council, Mātaatua Purapura - Kōhana Reo, New Zealand Police, Sustainable Business Network, Oxfam New Zealand, Fonterra, ToiEDA, New Zealand Coronial Services and New Zealand Association of Intermediate and Middle Schooling.

Meeting the Te Urewera Board kanohi ki te kanohi was a highlight for Tūhoe Manawarū Tribal Authority, allowing the expression of frank views and providing a submission for their consideration. We acknowledge the support and assistance of Tūhoe - Te Uru Taumatua and support the direction for shared pride and unity.

Te Waimana Kaaku Tribal visited and talked with 110 Te Waimana whānau - those living in the whārua and our kanohi kitea living out of the whārua on the Te Waimana Kaaku Census. They shared their whakaaro on their overall wellbeing, connection and their aspirations for the future. We conducted 45 housing assessments to inform our Tribal development planning in raising the standards of living of our whānau, education, culture and identity. The infrastructure for delivering our first Tribal Development Plan was established at Te Arohanui, our Tribal office.

The new ‘cube’ was outfitted as an interim office space to house our new kaimahi.

A priority for Te Komiti o Runa is to revitalise and preserve Tūhoe reo. The Tribal worked with the New Zealand Council for Educational Research to measure the health of te reo Māori in Tūhoe homes and communities. We begin to create Tūhoe reo resources and identify areas for development and strengthening.

Confidence flourished at Waikaremoana Tribal Authority. Our Communications Co-ordinator supported Tribal input and updates are kept regular. We regularly met with Tūhoe - Te Uru Taumatua, Tennant and Brown Architects, Arrow International and Waikaremoana Tribal to finalise the concept and plan of the build, budgets, and process of acquiring tenders. Te Wharehou o Waikaremoana will house our Tribal office and be a space for Tūhoe to welcome and host its manuhiri. There will also be a café, retail, and a space for wānana.

He Korona Whakataena 17

TOTAL EQUITY/NET WORTH

Millions

ASSET BASE

350 325 300 275 250 225 200 175 150 125 100 75 50 25 0 March 31 March 31 March 31 March 31 March 31 March 31 March 31 2010 2011 2012 2013 2014 2015 2016 Fixed Capital

Fixed Assets 10%

Retained earning from Consolidation Accumulated Retained Earnings

Receivables 1% CNI Equity 21% Bank 3% Term Deposits 6% Financial Portfolio 52% Shares & Fishing Quota 7%

We are well placed for growth and development supported by solid financial performance for past few years. While we are investing heavily in development, we will continue to look for new potential for capital growth.

18 TĹŞHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Our Tūhoe Assets This period we strengthened our systems operating around your Trust Fund to match the completed consolidation of Tūhoe held assets. We focussed on renewed investment objective and strategy recognising the new compilation of different kinds of assets and their different kinds of behaviours, such as varying performance measures and risk profiles.

We spread the financial portfolio across four Investment Managers to contest performance between them and to diversify achieving some safety from having all of our eggs in one basket.

We tightened our focus on our Tūhoe investment policies ensuring that our Investment Managers (AMP, ANZ, FNZC and NZAM) may never invest Tūhoe money in unethical products or companies; to promote diversification and avoid our list of unacceptable investment areas. We clarified our thought process around approvals for those calling on Tūhoe to invest in their commercial opportunities.

There has been no change to the Investment Committee membership or to the structure of the Portfolio.

FINANCIAL PORTFOLIO

Has objectives which are to: • Hold a balance of reserves necessary to achieve our Tribal development objectives and to take advantage of exciting opportunities which arise from time to time.

• Earn net (less fees, taxes) return of 5% above inflation on a rolling 3 year basis.

• Manage performance, market, inflation, liquidity, default, and manager risk.

CLOSELY HELD PORTFOLIO (generally your non-cash assets) Are organised in the following way to guide how these assets should be treated for example, preserved, maintained or worked…

Strategic Assets Your Tūhoe assets that convey value beyond commercial value and help to further Tūhoe Tribal goals and objectives, for example Te Kura Whare.

TŪHOE TRUST FUND

Investment Committee

Financial Investment

Financial Portfolio ($172m)

Operations

Closely-Held Assets

Term Investment ($19m)

Property Management

Real Assets ($136m)

Land Management

Fisheries Quota

Other Investments

Restricted Assets Assets achieved in settlement and returned as redress for historical breaches, these assets are considered tāona, Te Urewera being an example.

Commercial Assets Assets held for commercial return and or to service Tūhoe - Te Uru Taumatua operational requirements and or Tūhoe Tribal developmental projects, some examples are the Financial Portfolio, Fisheries Quota, Kainaroa Forestry leases.

Endowment Assets Assets managed by Tūhoe - Te Uru Taumatua which are set aside for a restricted purpose such as an ongoing fund for charitable purpose.

We are continuing to build the infrastructure necessary to maintain each and every closely held portfolio asset-tāona, to collect the necessary expertise to manage this well and to connect the respect for their care with the raising of capacity while also ensuring that Tūhoe Tribal goals are met over time. Tūhoe assets are legacy assets, they are needed for future generations.

He Korona Whakataena 19

20 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Financial Statements for the year ended 31 march 2016

He Korona Whakataena 21

Contents Trust Directory

...................................................................................................................................................................................

Independent Auditor’s Report

........................................................................................

23

24

Statement of Comprehensive Revenue and Expense

......................................................................................................................................

Statement of Changes in Equity

26

...............................................................................

27

Statement of Financial Position

28

Statement of Cash Flows

29

................................................................................

.......................................................................................................................

Notes to the Financial Statements

...............................................................

22 TĹŞHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

30

Trust Directory AS AT 31 MARCH 2016

OBJECTIVE OF BUSINESS

ADDRESS

Management of assets held in trust and the distribution of income from these assets for the long-term benefit of the Tūhoe Iwi as a Post Settlement Governance Entity.

12 Tūhoe Street, Tāneatua

TRUSTEES

BDO Wellington 50 Customhouse Quay Wellington 6011

TRIBAL

Tamati Kruger..................................................................................Rūātoki Patrick McGarvey..................................................................Rūātoki Martin Rakuraku......................................................................Waimana Ryan Te Wara....................................................................................Waimana Wiremu Doherty.....................................................................Ruatāhuna Celia Soloman...............................................................................Ruatāhuna

AUDITORS

BANKERS ASB Bank Westpac Bank BNZ Bank

Lance Winitana..........................................................................Waikaremoana

SOLICITORS David McLay Daveys Burton Bell Gully

He Korona Whakataena 23

INDEPENDENT AUDITOR’S REPORT To the Trustees of Tūhoe Te Uru Taumatua Group Report on the Financial Statements

We have audited the financial statements of Tūhoe Te Uru Taumatua (“the Group”) and its subsidiaries on pages 26 to 54, which comprise the consolidated and separate statements of financial position as at 31 March 2016, and the statements of comprehensive revenue and expense and statements of changes in equity and statements of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

This report is made solely to the Trustees, as a body, in accordance with the Trust Deed of Tūhoe Te Uru Taumatua. Our audit has been undertaken so that we might state to the Trustees 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 Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Board of Trustees Responsibility for the Financial Statements The Board of Trustees is responsible for the preparation and fair presentation of these financial statements in accordance with Tier 2 Not-For-Profit PBE Accounting Standards and for such internal control as the Board of Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing (New Zealand).

Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

24 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Trustees, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In addition to audit services, our firm provides other services in the areas of taxation advice. We have no other relationship with or interests in Tūhoe Te Uru Taumatua or any of its subsidiaries.

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Tūhoe Te Uru Taumatua and its subsidiaries as at 31 March 2016, and its financial performance and its cash flows for the year then ended in accordance with Tier 2 Not-For-Profit PBE Accounting Standards.

BDO Wellington 31 October 2016 Wellington New Zealand

He Korona Whakataena 25

STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE

|

For the Year Ended 31 March 2016

Note

Revenue Operational Income Other Income Total Revenue

9 9.1 9.2

GROUP 2016 2015 $ 000's $ 000's

PARENT 2016 2015 $ 000's $ 000's

2,120 6,690 8,810

825 7,665 8,490

7,476 5,324 12,800

3,067 7,121 10,188

4,055 842 3,327 8,223 587

3,094 401 3,220 6,714 1,776

2,853 539 6,556 9,948 2,852

2,626 370 10,713 13,708 (3,520)

17,369 17,956

5,333 7,109

2,852

(3,520)

(897) 190 9,427 (295) 26,381 1,827 24,554

28,935 12,034 (128) 47,950 (189) 48,139

(897) 816 9,427 12,198 2,950 9,248

12,034 (128) 8,385 357 8,029

279 24,833

653 48,792

9,248

8,029

Expenses (by Function of Expenses) Direct Costs Indirect Costs Administration & Other Costs Total Expenses Net Operating Surplus/(Deficit) Share of Profit & Loss of Associates: Share of equity accounted surplus and deficit Operating Surplus(Deficit) Other Revenue/(Losses) Tūhoe-Crown Treaty Settlement Gain/(Loss) on Revaluation of Financial Portfolio CNI Taxfree Distribution - Crown Allocation Portion Gain/(Loss) on revaluation of Investment Property Non-exchange gain on purchase of Matahi forest Impairment of Properties Surplus/(Deficit) for the year before income tax Tax Expenses/(Income) Surplus/(Deficit) for the year Other Comprehensive Revenue and Expense Gain/(Loss) on revaluation Other Intangibles Total Comprehensive Revenue and Expense

The accompanying notes form part of these financial statements

26 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

7 7 7

10

9.3(a) 9.3(b) 10 21 22 7

15

STATEMENT OF CHANGES IN EQUITY

|

For the Year Ended 31 March 2016

GROUP 2016 2015 $ 000's $ 000's

PARENT 2016 2015 $ 000's $ 000's

Retained Surpluses Opening Balance

57,038

27,655

30,386

22,358

Total Comprehensive Revenue and Expense Total Recognised Revenues and Expenses for the period

24,833 24,833

48,792 48,792

9,249 9,249

8,029 8,029

Note

Less: Transfer Revaluation gains to Revaluation Reserve

15

(279)

(653)

-

-

Transfer to Fixed Capital Te Ohu Kai Moana Trust Settlement

14

(279) 81,592

(18,757) (19,410) 57,038

39,635

30,386

14

242,783 242,783

224,026 18,757 242,783

224,026 224,026

224,026 224,026

15

653 279 932

653 653

-

-

12

325,306

300,474

263,661

254,412

Closing Retained Surpluses Fixed Capital of Trust - Opening balance Transfers to Fixed Capital Closing Fixed Capital Revaluation Reserve: Opening Balance Transfer from Retained Surpluses Closing Revaluation Reserve Equity at Balance Sheet Date

The accompanying notes form part of these financial statements

He Korona Whakataena 27

STATEMENT OF FINANCIAL POSITION

|

As at 31 March 2016

Note

Trust Equity

GROUP 2016 2015 $ 000's $ 000's

PARENT 2016 2015 $ 000's $ 000's

325,306

300,474

263,661

254,412

10,716 19,323 1,250 8 110 31,408

18,134 12,605 264 7 96 31,106

1,746 9,038 662 8 52 11,506

5,195 9,000 39 7 33 14,272

20,763 110 14,226 530 9,963 171,622 10,054 69,679 296,946

16,900 170 13,948 340 169,606 10,054 58,662 269,679

19,080 110 9,963 171,622 53,425 254,199

16,838 170 169,606 53,425 240,037

328,355

300,785

265,705

254,310

Represented by: Assets Current Assets Cash and Cash Equivalents Term Deposits Receivables from non exchange transactions Inventories Other Current Assets

16 17

19

Non-Current Assets Property, Plant & Equipment Intangibles Other Intangibles - (Fishing Quota Shares & NZUs) Investment Property Matahi Forestry Rights Investments (Financial Portfolio) Investments (AFL Income Shares) Interest in CNI Iwi Holdings Trust - at cost Equity Accounted share in Associated Entity

20 20 15 21 22 18 14 10 10

Total Assets Less: Liabilities Current Liabilities Creditors and Accruals under exchange transactions Income Tax Payable/(Refundable)

23 11

1,682 (286) 1,396

1,145 (838) 308

607 (217) 390

670 (773) (104)

Non-Current Liabilities Deferred tax Liability

11

1,654

2

1,654

2

3,050

310

2,044

(102)

325,306

300,474

263,661

254,412

Total Liabilities Net Assets

Trustee

31 October 2016

The accompanying notes form part of these financial statements

28 TĹŞHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Trustee

31 October 2016

STATEMENT OF CASH FLOWS

|

For the Year Ended 31 March 2016

GROUP 2016 2015 $ 000's $ 000's

PARENT 2016 2015 $ 000's $ 000's

Receipts from operational & other income Receipts from operational and other income Dividend Income Payments to Staff and Suppliers Investment income received Donations Paid Income Tax (paid) / refunded GST (paid)/recovered Net cash (used)/generated from operating activities

1,716 224 (6,994) 5,878 (307) 433 950

974 (6,323) 8,676 (110) (1,123) 566 2,659

144 (5,164) 5,287 (4,207) 433 18 (3,488)

82 (6,265) 8,477 (8,000) (1,123) 576 (6,252)

Cash flows from Investing Activities Distribution received - CNI Iwi Holdings Ltd Crown Settlement Purchase of Property Plant Equipment & Intangibles Investments made - Term Deposits and Managed Portfolio Purchase of Matahi forest Net cash (used)/generated from investing activities

6,352 (4,499) (9,686) (535) (8,368)

2,463 4,589 275 3,967 11,294

6,352 (2,827) (2,951) (535) 39

2,463 (364) 8,077 10,176

-

-

-

-

(7,418) 18,134 10,716

13,952 4,182 18,134

(3,448) 5,195 1,746

3,923 1,271 5,195

Note

Cash flows from Financing Activities Net cash generated from financing activities Net increase/(decrease) in cash and cash equivalents Opening Balance Cash and cash equivalents at balance date

16

He Korona Whakataena 29

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

1 Reporting entity The Tūhoe Te Uru Taumatua ("TUT", "the Trust" or "Group") previously known as Tūhoe Establishment Trust is a common law trust established on 23 May 2009.

In June 2013 Ngāi Tūhoe whānui voted in support of the Tūhoe Comprehensive Settlement. The Tūhoe Iwi vote resulted in the adoption of a new Tūhoe Te Uru Taumatua Trust Deed.

The financial statements of Tūhoe Te Uru Taumatua comprise the Trust, its subsidiaries and associates. The Trust reports its separate operations under 'Parent'.

This is the Group's first financial statements presented in accordance with PBE Standards. Upon transition to PBE Standards the Group has applied a number of the transitional provisions in accordance with PBE FRS-47. These are detailed in note 6.

TUT is involved in the management of assets held in trust and the distribution of income from these assets for the long-term benefit of the Tūhoe Iwi as a Post Settlement Governance Entity.

The Trust's primary objective is to provide goods and services for the social benefit of Tūhoe and not for financial return to any equity holders. For this reason it is designated as a Public Benefit Entity ('PBE').

2 Settlement with the Crown and formation of TUT On 1 July 2009 the Tūhoe Te Uru Taumatua, the approved Post Settlement Governance Entity (PSGE) received the Tūhoe component of the Central North Island (CNI) Settlement. The landmark settlement consisted of accumulated historic rentals, carbon entitlements and future forestry rentals.

On 30 June 2009 a Trust Deed and Shareholders Agreement was signed to establish the CNI Iwi Holdings Trust to hold the settlement assets on behalf of the CNI Forests Iwi Collective.

Under the CNI Deed of Settlement (DOS) the Crown returned 176,000 ha of North Island forest lands as well as interests in Crown Forestry Licenses with an agreed value of $225.6 million.

In addition, Accumulated rents with a value of $284 million, held by Crown Forests Rental Trust, became payable to CNI Iwi Holdings, and was subsequently distributed to CNI Iwi Collective members.

The DOS also deals with further assets to be settled on CNI Iwi Holdings, such as New Zealand Carbon Units (NZU's) to be settled free of charge.

The CNI Iwi Holdings Trust Deed records that the various Governance Groups do not acquire an ownership interest in any of the assets of CNI Iwi Holdings. TUT is recorded in this deed as the Governance entity representing the interests of Ngai Tūhoe with a beneficial interest (right to income) in CNI Iwi Holdings for 35 years.

During the initial period the Crown retains a 10% beneficial interest in CNI Iwi Holdings assets, the accumulated rents and current rents. The initial period is the period to 2014, during which time the Crown proportion is available to settle any claims outside of the DOS. At the termination of the initial period, Ngai Tūhoe beneficial reprresent 26.3125% (Initial period 23.68125%) the interest (right to income) in CNI Iwi Holding.

In terms of the DOS there are restrictions on the disposal of the forestry assets during the initial period as well as during the 35 year terms of the forest leases.

In June 2013 Tūhoe and the Crown signed the Te Urewera Deed of Settlement. The Deed of Settlement is the final settlement of all historical Treaty of Waitangi claims of Tūhoe resulting from acts or omissions by the Crown prior to 21 September 1992, and is made up of a package that includes: • agreed historical account, Crown acknowledgments and apology • redress over Te Urewera and other cultural redress • redress in relation to Mana Motuhake • financial and commercial redress.

The Tūhoe Claims Settlement Bill was Passed into Law on 24 July 2014. In addition to the matters stated above, the settlement provides for the disestablishment of the Tūhoe Waikaremoana Maori Trust Board and Tūhoe Fisheries Charitable Trust and

30 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

vesting of their assets and liabilities in Tūhoe Charitable Trust. The Tūhoe Charitable Trust was also recognised by Te Ohu Kai Moana Trustee Limited as the Mandated Iwi Organisaion in place of the Tūhoe Fisheries Charitable Trust; and Tūhoe Fish Quota Limited is the asset holding company of the Tūhoe Charitable Trust.

3 Basis of preparation (a) Statement of compliance The consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”). They comply with Public Benefit Entity International Public Sector Accounting Standards (“PBE IPSAS”) and other applicable Financial Reporting Standards, as appropriate for Tier 2 not-for-profit public benefit entities, for which all reduced disclosure regime exemptions have been adopted.

The Group qualifies as a Tier 2 reporting entity as for the two most recent reporting periods it has had between $2m and $30m operating expenditure.

These financial statements were authorised for issue by the Tūhoe Te Uru Taumatua Board on 31th October 2016. (b) Measurement basis The consolidated financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position, which are measured at fair value : • Financial Portfolio • Available for sale financial instruments • Fish Quota Assets • Investment property • Investment classified as fair value through surplus or deficit (c) Functional and presentation currency The financial statements are presented in New Zealand dollars ($) which is the controlling entity’s functional and Group’s presentation currency, rounded to the nearest thousand dollars ($000’s).

There has been no change in the functional currency of the Group during the year.

4 Use of judgements and estimates The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. (a) Judgements Judgements made in applying accounting policies that have had the most significant effects on the amounts recognised in the consolidated financial statements include the following: • Whether there is control (or not) over an investee • Whether there is joint control (or not) over an investee • Whether there is significant influence (or not) over an investee (b) Assumptions and estimation uncertainties Assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 31 March 2016 include the following: • Key assumptions underlying determining the recoverable amounts for impairment testing • Likelihood and magnitude of outflows in determining recognition and measurement of provisions • Useful life, recoverable amount, depreciation/amortisation method and rate • Determination of fair values [refer to items in Note 3 above]

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

5 Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements and have been applied consistently by the Group.

Subsequent changes in a controlled entity that do not result in a loss of control are accounted for as transactions with controllers of the controlling entity in their capacity as controllers, within net assets/equity.

The significant accounting policies of the Group are detailed below: (a) Basis of consolidation (b) Subsidiaries and associates (c) Revenue (d) Employee benefits (e) Finance income and finance costs (f) Financial instruments (g) Impairment of non-derivative financial assets (h) Inventory (i) Property, plant and equipment (j) Intangible assets (k) Investment property (l) Impairment of non-financial assets (m) Leases (n) Provisions (o) Income Tax (p) Goods and Services Tax (q) Statement of Cash Flows

iii. Loss of control of a controlled entity On the loss of control, the Group derecognises the assets and liabilities of the controlled entity, any minority interest, and the other components of net assets/equity related to the controlled entity. Any surplus or deficit arising on the loss of control is recognised in surplus or deficit.

(a) Basis of consolidation i. Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group.

The consolidated financial statements include the Group’s share of the surplus or deficit and other comprehensive revenue and expense of its equity accounted associates and jointly-controlled-entities, after adjustments to align the accounting policies with those of the Group, from the date that significant influence or joint control commences until the date that significant influence or joint control ceases.

The Group controls an entity when it has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable.

The Group measures goodwill at the acquisition date as: The aggregate of: • The fair value of consideration transferred • The recognised amount of any minority interests in the acquiree, and • The fair value of any pre-existing equity interest in the acquiree.

Less: • The fair value of the net identifiable assets acquired and liabilities assumed.

Any gain on bargain purchase gain is recognised immediately in surplus or deficit.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in surplus or deficit.

Transactions costs related to a business combination incurred by the Group, other than those associated with the issue of debt or equity securities, are expensed in surplus or deficit as incurred.

Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not subsequently remeasured and settlement is accounted for within net assets/equity.

Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in surplus or deficit. ii. Controlled entities Controlled entities are entities controlled by the Group, being where the Group has power to govern the financial and operating policies of another entity so as to benefit from that entity’s activities. The financial statements of the Group’s controlled entities are included in the consolidated financial statements from the date that control commences until the date that control ceases.

If the Group retains any interest in the previously controlled entity, then such interest is measured at fair value at the date that control is lost. Subsequently, the retained interest is either accounted for as an equity-accounted associated or an available-for-sale financial asset depending on the level of influence retained. v. Associates Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity. Investments in associates for the Group are accounted for using the equity method and are recognised initially at cost, including directly attributable transaction costs. Investment in the Parent is caried at cost.

When the Group’s share of losses exceeds its interest in its equity accounted associates and jointly-controlled-entities, the carrying amount of the investment, including any longterm investments that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. vi. Joint ventures Joint ventures are those entities over whose activities the Group has joint control, established by a binding agreement and requiring unanimous consent for strategic financial and operating decisions.

Joint ventures that are structured in a separate vehicle are classified jointly-controlled-entities and are accounted for using the equity method (as detailed above for associates) proportionate consolidation method whereby a Group’s share of each of the assets, liabilities, revenue and expenses of a jointly controlled entity is combined line by line with similar items in the Group’s financial statements.

Joint ventures that are not structured in a separate vehicle are classified as either jointly-controlled-operations or jointly controlled assets. The consolidated financial statements include the Group’s share of assets, liabilities, expenses, and revenues from the jointly-controlled-operation or jointly controlled asset on a line-by-line basis. vii. Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

Unrealised gains arising from transactions with equity accounted associates and jointly-controlled-entities are eliminated against the investment to the extent of the Group’s interest in the investee.

Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

He Korona Whakataena 31

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

(b) Subsidiaries and Associates Registered Charity

Operating Division

Ownership

Voting interest

Balance Date

Subsidiaries: Tūhoe Charitable Trust

CC45656

Distribution

TUT

100%

31 March

Tūhoe Fish Quota Limited

CC11440

Asset Holding

TCT

100%

31 March

Ruatoki Tribal Authority Charitable Company Ltd

CC52142

Community Development

TCT

100%

31 March

Waikaremoana Tribal Authority Charitable Company Ltd

CC52146

Community Development

TCT

100%

31 March

Te Waimana Kaaku Tribal Authority Charitable Company Ltd

CC52143

Community Development

TCT

100%

31 March

Tūhoe Manawaru Tribal Authority Charitable Company Ltd

CC52145

Community Development

TCT

100%

31 March

No

Investment

26.31%

12.50%

31 March

Associates: CNI Iwi Holdings Trust

The Tūhoe Charitable Trust was incorporated on 31 July 2010, with the objects: a) the promotion of health & wellbeing of members of Ngai Tūhoe b) the maintenance, upkeep and administration of Marae and Hapu c) matters beneficial to Ngai Tūhoe Communities i.e. education, health, housing, environment sustainability. The principle activity of the Tūhoe Charitable Trust is the provision of funding for these objects.

Tūhoe Fish Quota Limited holds the settlement quota, the income shares and all other assets as custodian for the benefit of the charitable purposes of the Shareholder, Tūhoe Charitable Trust who were vested all assets and liabilities of Tūhoe Fisheries Charitable Trust as per the Tūhoe Settlement Claim Act 2014.

The four Tribal Companies were incorporated during NovMarch 2015 period. Tūhoe Charitable Trust as a Parent completed a Single Entity registration with Charities Services under the name of Tūhoe Tribal Authorities. As part of terms and condition of the Single Entity registration, the Parent has a duty to file annual return that must account for the activities of each registered charity that forms part of the single entity; and the financial statements must be consolidated for all of the registered charities that form part of the single entity using the relevant standards prescribed by the Financial Reporting Act 2008. The first Annual Return is due in 2016. (c) Revenue Revenue is recognised when the amount of revenue can be measure reliably and it is probable that economic benefits will flow to the Group, and measured at the fair value of consideration received or receivable.

The following specific recognition criteria in relation to the Group’s revenue streams must also be met before revenue is recognised. i. Revenue from exchange transactions Sale of goods Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates.

Revenue is recognised when the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably.

If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognised as a reduction of revenue as the sales are recognised.

Annual Catch Entitlement (ACE) Sales are accounted for in the respective ACE rounds as they are received. ACE are receipted for other species in April and in October for wet fish.

32 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Rendering of services Services relate to Health Centre services as well as Te Urewera Management services provision Revenue from services rendered is recognised in surplus or deficit when the service is rendered.

Amounts received in advance for services to be provided in future periods are recognised as a liability until such time as the service is provided.

Forestry Rents - CNI Iwi Holdings Distribution Distributions from CNI Iwi Holdings comprise the Trust’s share of forestry land rentals and is treated as revenue from operations and is recognised at the date of distribution.

Rental income on investment property Rental income from investment property is recognised in surplus or deficit on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. ii. Revenue from non-exchange transactions Non-exchange transactions are those where the Group receives an inflow of resources ((i.e. cash and other tangible or intangible items) but provides no (or nominal) direct consideration in return.

With the exception of services-in-kind, inflows of resources from non-exchange transactions are only recognised as assets where both: • It is probable that the associated future economic benefit or service potential will flow to the entity, and • Fair value is reliably measurable.

Volunteer services received are not recognised as the fair value of the services are not able to be reliably measured.

Liabilities are recognised in relation to inflows of resources from non-exchange transactions when there is a resulting present obligation as a result of the non-exchange transactions, where both: • It is probable that an outflow of resources embodying future economic benefit or service potential will be required to settle the obligation, and • The amount of the obligation can be reliably estimated.

The following specific recognition criteria in relation to the Group’s non-exchange transaction revenue streams must also be met before revenue is recognised.

As a part of the settlement the Trust was able to purchase Matahi Forest at a price well below its fair value, therefore the transaction includes a non-exchange component equal to the difference between fair value and the purchase price.

Grants Grants are recognised as revenue when the conditions associated with the grants have been fulfilled.

Non-exchange revenue includes grants, donations and koha received.

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

(d) Employee benefits i. Short-term employee benefits Short-term employee benefit liabilities are recognised when the Group has a legal or constructive obligation to remunerate employees for services provided with 12 months of reporting date, and is measured on an undiscounted basis and expensed in the period in which employment services are provided. ii. Long-term employee benefits Long-term employee benefit obligations are recognised when the Group has a legal or constructive obligation to remunerate employees for services provided beyond 12 months of reporting date. iii. Termination benefits Termination benefits are recognised as an expense when the Group is committed demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting date, then they are discounted to their present value. (e) Finance income and finance costs Finance income comprises interest income on financial assets, gains on the disposal of available-for-sale financial assets, fair value gains on financial assets at fair value through surplus or deficit, and gains on the remeasurement to fair value of any pre-existing interest in an acquiree. Interest income is recognised as it accrues in surplus or deficit, using the effective interest method.

Finance costs comprise interest expense on financial liabilities, unwinding of the discount on provisions, losses on disposal of available-for-sale financial assets, fair value losses on financial assets at fair value through surplus or deficit, impairment losses recognised on financial assets, and fair value adjustments on concessionary loans issued. (f) Financial instruments The Group initially recognises financial instruments when the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.

The Group derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire.

The Group also derecognises financial assets and financial liabilities when there has been significant changes to the terms and/or the amount of contractual payments to be received/paid.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Group classifies financial assets into the following categories: fair value through surplus or deficit, held-tomaturity, loans and receivables, and available-for-sale.

The Group classifies financial liabilities as amortised cost, which includes accounts payable, funds in custody and accrual expenses.

Financial instruments are initially measured at fair value, plus for those financial instruments not subsequently measured at fair value through surplus or deficit, directly attributable transaction costs.

Subsequent measurement is dependent on the classification of the financial instrument, and is specifically detailed in the accounting policies below. i. Fair value through surplus or deficit A financial instrument is classified as fair value through surplus or deficit if it is: • Held-for-trading: Derivatives where hedge accounting is not applied • Designated at initial recognition: If the Group manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Group’s documented risk management or investment strategy.

Financial instruments classified as fair value through surplus or deficit are subsequently measured at fair value with gains or losses being recognised in surplus or deficit. This includes investments (Financial Portfolio) ii. Held-to-maturity If the Group has the positive intent and ability to hold debt securities to maturity, then such financial assets are classified as held-to-maturity.

Held-to-maturity financial assets are subsequently measured at amortised cost using the effective interest method, less any impairment losses.

Held-to-maturity financial assets comprise term deposits. iii. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market.

Loans and receivables are subsequently measured at amortised cost using the effective interest method, less any impairment losses.

Loans and receivables comprise cash and cash equivalents, monetary recoverables and other current assets (excluding tax receivables and prepayments) Cash and cash equivalents represent highly liquid investments that are readily convertible into a known amount of cash with an insignificant risk of changes in value, with maturities of 3 months or less. iv. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are not classified in any of the above categories of financial assets.

Available-for-sale financial assets are subsequently measured at fair value with gains or losses (other than foreign exchange gains or losses) recognised in other comprehensive revenue and expense.

Upon derecognition, the accumulated gain or loss within net assets/equity is reclassified to surplus or deficit.

Available-for-sale financial assets comprise shares in Aotearoa Fisheries Limited (AFL). AFL shares are bring carried at cost as there is no quoted market. The fair value of the AFL shares cannot be reliably measured due to no active market. (g) Impairment of non-derivative financial assets A financial asset not subsequently measured at fair value through surplus or deficit is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset, and that the loss event(s) had an impact on the estimated future cash flows of that asset that can be estimated reliably.

Objective evidence that financial assets are impaired includes default or delinquency by a counterparty, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a counterparty or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers in the Group, economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition, for an equity security classified as an available-for-sale financial asset, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.

He Korona Whakataena 33

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

i. Financial assets classified as held-to-maturity and loans and receivables The Group considers evidence of impairment for financial assets measured at amortised cost (loans and receivables and held-to-maturity) at both a specific asset and collective level.

All individually significant assets are assessed for specific impairment. Those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified.

Assets that are not individually significant are collectively assessed for impairment by grouping together assets with similar risk characteristics.

In assessing collective impairment the Group uses historical trends of the probability of default, the timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in surplus or deficit and reflected in an allowance account against loans and receivables or held-to-maturity. Interest on the impaired asset continues to be recognised.

When an event occurring after the impairment was recognised causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through surplus or deficit. ii. Financial assets classified as available-for-sale Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value reserve in net assets/equity to surplus or deficit.

The cumulative loss that is reclassified from net assets/equity to surplus or deficit is the difference between the acquisition cost, net of any principal repayment and amortisation, and the current fair value, less any impairment loss recognised previously in surplus or deficit.

Changes in impairment provisions attributable to application of the effective interest method are reflected as a component of interest income. If, in a subsequent period, the fair value of an impaired available-for-sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognised, then the impairment loss is reversed, with the amount of the reversal recognised in surplus or deficit. However, any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive revenue and expense. (h) Inventory Inventory is initially measured at cost, except items acquired through non-exchange transactions which are instead measured at fair value as their deemed cost at initial recognition.

Inventories are subsequently measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. (i) Property, plant and equipment i. Recognition and measurement Items of property plant and equipment are initially measured at cost, except those acquired through non-exchange transactions which are instead measured at fair value as their deemed cost at initial recognition.

Heritage assets with no future economic benefit or service potential other than their heritage value are not recognised in the statement of financial position.

34 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Items of property, plant and equipment are subsequently measured either under the: • Cost model: Cost (or fair value for items acquired through non-exchange transactions) less accumulated depreciation and impairment.

• Revaluation model: fair value, less accumulated depreciation and accumulated impairment losses recognised after the date of the most recent revaluation.

Valuations are performed with sufficient frequency to ensure that the fair value of a revalued asset does not differ materially from its carrying amount.

Gains and losses on revaluation are recognised in other comprehensive revenue and expense and presented in the revaluation surplus reserve within net assets/equity. Gains or losses relating to individual items are offset against those from other items in the same class of property, plant and equipment, however gains or losses between classes of property, plant and equipment are not offset.

Any revaluation losses in excess of credit balance of the revaluation surplus for that class of property, plant and equipment are recognised in surplus or loss as an impairment.

All of the Group’s items of property plant and equipment are subsequently measured in accordance with the cost model.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the following: • The cost of materials and direct labour • Costs directly attributable to bringing the assets to a working condition for their intended use • When the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the items and restoring the site on which they are located, and • Capitalised borrowing costs.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in surplus or deficit.

Upon disposal of revalued items of property, plant and equipment, any associated gain or losses on revaluation to that item are transferred from the revaluation surplus to accumulated surplus. ii. Reclassification to investment property When the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value and reclassified as investment property.

Any gain arising on remeasurement is recognised in surplus or deficit to the extent that it reverses a previous impairment loss on the specific property, with any remaining gain recognised in other comprehensive revenue and expense and presented in the revaluation reserve in net assets/equity.

Any loss is recognised immediately in surplus or deficit. iii. Subsequent expenditure Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance is expensed as incurred.

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

iv. Heritage Assets Financial Reporting standards in New Zealand recognise that some assets have a heritage element because of their cultural, environmental or historical significance. The standards recognise that the value of such assets in cultural, environmental, educational and historical terms is unlikely to be fully reflected in a financial value based purely on a market price, that legal or statutory obligations may impose prohibitions or restrictions on disposal or sale and that they are often irreplaceable. TUT recognises two of its assets as having the characteristics of Heritage assets: iv.a) Te Urewera An important element of the Deed of Settlement signed with the Crown in July 2014 relates to joint control over Te Urewera National Park. The Te Urewera Act 2014 notes that for Tūhoe, Te Urewera is their place of origin and return and their homeland. The Act contains restrictions on the ability to alienate, mortgage, charge or otherwise dispose of the land. The Act constitutes the Te Urewera Board to manage Te Urewera. For the first three years,four members of the Board are appointed by Tūhoe and four by the Crown. In terms of the Act, major decisions must be unanimous and others by concensus. Tūhoe considers that the Te Urewera land is a Heritage asset due to its nature and characteristics. Further, the value of the land cannot be reliably measured due to its historical and cultural value. iv.b) Lake Waikaremoana The Lake Waikaremoana Act 1971 vested ownership of Lake Waikaremoana in Tūhoe Waikaremoana Maori Trust Board and Wairoa Waikaremoana Maori Trust Board as tenants in common. In accordance with the terms of the Te Urewera Tūhoe Claims Settlement Bill, from the settlement date all assets and liabilities of the Tūhoe Waikaremoana Maori Trust Board have been vested in the Tūhoe Charitable Trust.

In the past, The value of Lake has been determined by calculating the present value of expected future cash inflows.

Expected future cash inflows are for the period of the lease agreements that are in place for use of the Lake bed.

As far as the Trust is concerned the above method is a way of calculating the accounting value of the Lake bed but does not reflect the cultural, social and economic benefit of the lake to the Tūhoe iwi.

In consideration of the Lake’s cultural and social value to Tūhoe, the Trust has decided not to use a sensitive accounting value of the Lake that does not represent the real value of the asset. The Trust recognises that there is no method to determine a Fair Value or a Depreciated Replacement Cost (DRC) of this asset. Finally, the Trust has recognised that the Lake is : - a unique asset that has iconic status - historic and irreplaceable; and - an asset that is sacred to Tūhoe community.

The Trust has decided not to value the Lake for the purpose of Financial Reporting and acknowledges that the Waikaremoana Lake as Tūhoe’s Heritage asset whose value cannot be reliably determined. v. Depreciation For plant and equipment, depreciation is based on the cost of an asset less its residual value, and for buildings is based on the revalued amount less its residual value. Significant components of individual assets that have a useful life that is different from the remainder of those assets, those components are depreciated separately.

Depreciation is recognised in surplus or deficit over the estimated useful lives of each component of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated. Assets under construction are not subject to depreciation.

The diminishing value depreciation rates are: • Art & Archives 10% to 100% • Buildings 3% to 12% • Plant and equipment 12% to 80.4% • Motor vehicles 36% • Fixtures and fittings 9.6% to 80.4% • Computer equipment 48% to 60% Depreciation methods, useful lives, and residual values are reviewed at reporting date and adjusted if appropriate.

Depreciation and amortisation rates are unchanged from 2015. (j) Intangible assets i. Recognition and measurement Intangible assets are initially measured at cost, except for: • Intangible assets acquired through non-exchange transactions (measured at fair value), and • Goodwill (measured in accordance with business combination accounting – refer Note 4(a)(i)).

All of the Group’s intangible assets are subsequently measured in accordance with the cost model, being cost (or fair value for items acquired through non-exchange transactions) less accumulated amortisation and impairment, except for the following items which are not amortised and instead tested for impairment: • Goodwill • Intangible assets with indefinite useful lives, or not yet available for use.

The Group has no intangible assets with indefinite useful lives.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed intangible assets includes the following: • The cost of materials and direct labour • Costs directly attributable to bringing the assets to a working condition for their intended use, and • Capitalised borrowing costs. ii. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in surplus or deficit as incurred. iv. Amortisation Amortisation is recognised in surplus or deficit over the estimated useful lives of each amortisable intangible asset.

The diminishing value amortisation rates are: • Software 50% to 60% (2015: 50% to 60%) Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (k) Quota Shares Quota shares are recorded initially at cost. Settlement quota shares are recorded at a value determined by the settlement documentation. All quota shares are subsequently revalued to fair value. Any gains on revaluation are recognised directly in equity.

Fair value is determined as the latest valuation less any impairment cost. Valuations are undertaken on a regular basis to ensure the carrying amount does not differ materially from the fair value of the shares.

Impairment losses are recognised whenever the carrying amount of an asset exceeds its recoverable amount. Quota shares are tested for impairment whenever there is an indication of impairment on an individual basis or at a cashgenerating unit level.

He Korona Whakataena 35

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

(l) Investment property Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. i. Recognition and measurement Investment property is initially measured at cost, except those acquired through non-exchange transactions which are instead measured at fair value as their deemed cost at initial recognition.

Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs.

Investment properties are subsequently measured at fair value.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in surplus or deficit. ii. Reclassifications When an investment property that was previously classified as property, plant and equipment is sold, any related amount included in the revaluation reserve is transferred to retained earnings.

When the use of an investment property changes to owner occupied, such that it results in a reclassification to property, plant and equipment, the property’s fair value at the date of reclassification becomes its cost for subsequent accounting. (m) Biological assets Biological assets including forestry rights are initially measured at cost except those acquired through nonexchange transaction which are instead measure at fair value as deemed cost at initial recognition. Biological assets are subsequently measured at fair value less cost of disposal.

Any gain or loss on disposal of Biological asset is recognised in surplus or deficit. (n) Impairment of non-financial assets The carrying amounts of the Group’s non-financial assets, other than biological assets, investment property, and inventories, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

Goodwill, indefinite life intangible assets, and intangible assets not yet available for use are tested annually for impairment. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in us, the estimated future cash flows (for cashgenerating assets) or future remaining service potential (for non-cash-generating assets) are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.

36 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Impairment losses are recognised in surplus or deficit.

Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis.

An impairment loss in respect of goodwill is not reversed.

For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (o) Leases i. Classification and treatment Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases.

Finance leases Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Operating leases Leases that are not finance leases are classified as operating leases.

Operating leases are not recognised in the Group’s statement of financial position. Payments made under operating leases are recognised in surplus or deficit on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. ii. Determining whether an arrangement contains a lease At the inception of an arrangement the Group determines whether such an arrangement is or contains a lease. This will be the case if the following two criteria are met: • The fulfilment of the arrangement is dependent on the use of a specific assets or assets, and • The arrangement contains a right to use the asset(s).

At inception or on reassessment of the arrangement, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group concludes for a finance lease that it is impracticable to separate the payments reliably, then an asset and a liability are recognised at an amount equal to fair value of the underlying asset. Subsequently the liability is reduced as payments are made and an imputed finance cost on the liability is recognised using the Group’s incremental borrowing rate. (p) Provisions A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost within surplus or deficit.

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

(q) Income Tax TUT is a Maori authority for income tax purposes.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date.

Management periodically evaluates positions taken in tax returns where applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the parent’s statement of financial position differs from its tax base, except for differences arising on: - The initial recognition of goodwill - The initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting or taxable profit, and - Investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.

Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.

The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax liabilities/ (assets) are settled/ (recovered).

Deferred tax is not brought to account In respect of the subsidiaries as all subsidiaries are registered charities and not liable for taxation or in respect of the equity accounted associate as there is no difference between the carrying amount and tax base.

(r) Goods and Services Tax TUT is registered for GST and amounts in these financial statements are stated exclusive of GST with the exception of Receivables and Payables which are inclusive of GST. The activities of TUT on behalf of its members mean that some form of apportionment is required for the deduction of GST inputs. The basis of apportionment has been agreed with the IRD. The apportionment effect is disclosed separately in the Statement of Compresive Revenue and Expenses. (s) Statement of Cash Flows Operating activities include amounts received from investment income and other income sources and payments to employees and suppliers to manage the day-to-day running of TUT. Investing activities are those related to the purchase and disposal of investments and property, plant and equipment.

Financing activities comprise loans and borrowings and distributions to members of TUT.

He Korona Whakataena 37

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

6 Adopting PBE Standards

GROUP $ 000's

PARENT $ 000's

Trust Equity Balance 31 March 2014 disclosed under NZ FRS Deferred Tax Liability at transition brought to account Trust Equity under PBE IPSAS (RDR) at 1 April 2014

251,681 251,681

246,384 246,384

Balance 31 March 2015 disclosed under NZ FRS

296,391

254,414

As disclosed in Note 1, the Group adopted PBE Tier 2 Standards and the 31 March 2016 financial statements represent the first reporting period under PBE and PBE FRS 47 has been applied.

An opening statement of financial position was prepared at the date of transition; 1 April 2014 and, in terms of PBE FRS 47.30, the Group is required to disclose a reconciliation of the Trust Equity at 1 April 2014 and 31 March 2015 from previous GAAP financial statements.

a) The Group elected to use the fair value of Investment Property as deemed cost upon transition, with no resulting change in the carrying amount at 31 March 2015. b) Deferred tax asset brought to account Trust Equity under PBE IPSAS (RDR) at 31 March 2015 Add: Restatement of 2015 balances as per note 27

38 TĹŞHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

(2) 296,389

(2) 254,411

4,086 300,474

254,411

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

7 Expenses include

Note

Direct Costs: Governance Costs Employee Benefit expense (Management & Direct) Group Project Direct Costs Anamata Onukurani Iwi Whairawa Other Direct Costs - Cost of sales Indirect Costs: Resources & maintenance Communication Unit costs Telecommunications Utilities Other Indirect Costs Administration & Other Costs include: Personel Expenses Financial Portfolio Management Fees Depreciation & Amortisation GST Apportionment Insurance Donation Fees paid to Auditors: For Audit services For Taxation services For financial reporting services Professional Fees Grants Paid Other Administration Costs Tribal Capacity (Other Costs)

Total Kiwisaver Employer contribution included within the Direct wages and Personnel expenses Impairment of Properties 22 TĹŤhoe Street Ruatahuna Store

21

8

GROUP 2016 2015 $ 000's $ 000's

PARENT 2016 2015 $ 000's $ 000's

495 2669

401 1,197

208 1,740

382 986

70 556 85 117 63 4,055

707 103 487 70 128 3,094

70 627 41 117 48 2,853

667 103 372 70 45 2,626

331 238 69 55 149 842

135 71 58 48 89 401

142 223 50 44 79 539

121 69 54 46 80 370

780 894 696 106 86 307

688 812 675 185 73 110

497 894 651 106 67 4,207

588 812 665 185 71 8,000

66 17 33 180 102 62 3,327

48 9 17 124 162 109 210 3,220

30 17 12 41 34 6,556

20 9 3 105 150 104 10,713

83

32

51

29

295 295

128 128

-

-

He Korona Whakataena 39

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

8 Donations

Note

In March 2016 Tūhoe Te Uru Taumatua made donations of $4,000,000 (LY $8,000,000) in income to the Tūhoe Charitable Trust. The Tūhoe Charitable Trust as at 31 March has applied $100,000 (LY $100,000) for marae funding purposes and $100,000 (LY $100,000) to Community Groups and other Koha.

9 Revenue 9.1 Income from Operations (exchange revenue) ACE Trading Receipts from business Forestry rentals - Distribution from CNI Iwi Holdings Service provision Lease & Rental income 9.2 Other Income Non-exchange revenue Grant Received Koha Received Sundry Income Exchange revenue Interest Income Investment Income Dividend Earned

(a) Grants are recognised as revenue when the conditions associated with the grants have been fulfilled. During the year three separate grants were received. (b) Dividend earned from Aotearoa Fisheries Limited Shares (8,754). Maori Authority credits attached to AFL's dividend $47,427 (LY $65,234) have been claimed for refund from the IRD and taken up as an account receivable.

40 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Note

10

18

GROUP 2016 2015

PARENT 2016 2015

$ 000's

$ 000's

$ 000's

$ 000's

307

110

4207

8000

GROUP 2016 2015 $ 000's $ 000's

PARENT 2016 2015 $ 000's $ 000's

799 797 205 320 2,120

505 77 30 213 825

712 6,710 51 3 7,476

52 2,985 30 3,067

502 29 3

117 23 50

2 -

117 11 -

1,183 4,702 271 6,690

1,763 5,464 249 7,665

620 4,702 5,324

1,529 5,464 7,121

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

9.3 Other gains/(losses) (a) Tūhoe and the Crown signed a Deed of Settlement on 4 June 2013. The Tūhoe Deed of Settlement is the final settlement of all historical Treaty of Waitangi claims of Tūhoe resulting from acts or omissions by the Crown prior to 21 September 1992, and is made up of a package that includes: • agreed historical account, Crown acknowledgments and apology • redress over Te Urewera and other cultural redress • redress in relation to Mana Motuhake • financial and commercial redress.

The Tūhoe Claims Settlement Bill was passed in the House, at Parliament on 24th July 2014. The Act has disestablished - Tūhoe Waikaremoana Maori Trust Board - Tūhoe Fisheries Charitable Trust The Act also vested all of their assets and liabilities in Tūhoe Charitable Trust.

The Tūhoe Charitable Trust was also recognised by Te Ohu Kai Moana Trustee Limited as the Mandated Iwi Organisation in place of the Tūhoe Fisheries Charitable Trust; and Tūhoe Fish Quota Limited is the asset holding company of the Tūhoe Charitable Trust.

Tūhoe received the cash settlement amount in advance during September 2013.

Note

Fair value of assets vested: Tūhoe Waikaremoana Maori Trust Board Tūhoe Fisheries Charitable Trust Tūhoe Fish Quota Limited

13 13 13

GROUP 2016 2015 $ 000's $ 000's

-

4,629 18 24,289 28,935

PARENT 2016 2015 $ 000's $ 000's

-

-

The following adjustments were made in determining the value of the Crown Settlement: As explained in note 5 (i), the Lake Waikaremoana asset, previously included at fair value in the financial statements of Tūhoe Waikaremoana Maori Trust, is regarded as a heritage asset whose fair value cannot be reliably measured. For this reason, its value in the financial statements of the Tūhoe Waikaremoana Maori Trust has been eliminated.

Note

GROUP 2016 2015 $ 000's $ 000's

PARENT 2016 2015 $ 000's $ 000's

(b) Fair value gains/(losses) on Managed Portfolio - unrealised AMP Capital NZ First ANZ Investments NZAM

Started Started Started Started

May 13 Mar 14 Dec 15 Dec 15 18

(304) (99) 413 (907) (897)

8,142 3,892 0 0 12,034

(304) (99) 413 (907) (897)

8,142 3,892 0 0 12,034

He Korona Whakataena 41

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

10 Accounting for Associates, Partnerships and Joint Ventures The following entities meet the definition of an associate and have been equity accounted in the Group financial statements of TUT: CNI Iwi Holdings Trust (Beneficial interest 26.3125% [LY 23.68125%])

Note

CNI Iwi Holdings Trust: Investment at cost Prior year equity accounted adjustments (net) Less: Distribution received (Net of Maori Tax Credits) Less: Tax Free Distribution received (Crown Allocation Portion) Add: Portion of distribution received where equity currently resides with the Crown Add: Increase in opening equity held due to the increase in beneficial interests Add: Share of surplus after tax Add: Add back prior year adjustment for timing difference on settlement of Crown agreed portion and NZU's Net Equity accounted share of surplus or deficit Equity accounted share in CNI Iwi Holdings Trust Crown agreed portion and NZU's: In the financial statements of CNI IHT, NZ Carbon Credit units (NZU's) are valued at balance date at $11.07 per unit (LY:$6.50 per unit).

The Crown Agreed Portion and the Crown share of NZU's have been distributed to Iwi at 31 March 2015. These transactions only took place subsequent to 31 March 2015 The Trustees of TUT have therefore determined account for them in the 2016 financial statements.

42 TĹŞHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

9.1

GROUP 2016 2015 $ 000's $ 000's

53,425 5,237 58,662 5,536 816

53,425 2,367 55,792 2,463 -

6,904 6,998

8,779

3,467

(3,446)

17,369 69,679

5,333 58,662

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

GROUP 2016 2015 $ 000's $ 000's

PARENT 2016 2015 $ 000's $ 000's

Tax Expense/(Income) (i) Current tax expense/(income) Recognised in the Income Statement Surplus before Tax Taxable Income

26,381 26,381

47,950 47,950

12,198 12,198

8,385 8,385

Prima Facie Taxation at 17.5% Tax on the Expenditure not deductible for tax purposes Non taxable Income Non taxable Other Income FIF - non claimable Tax portion Under/(over) provision - prior year Temporary difference Non taxable surplus from Charitable Entities Tax on Taxable Income Current Tax Expense/(Income)

4,617 689 (3,740) 175 126 (16) 2 (26) 1,827 1,827

8,391 790 (2,333) (7,147) 180 2 (73) (189) (189)

2,135 689 14 126 (16) 2 2,950 2,950

1,467 790 (2,083) 180 2 357 357

(ii) Split between Tax Expense/(Income) Original and reversal of temporary differences

175 1,652

(191) 2

1,298 1,652

355 2

Income Tax Payable/(Refundable) Opening Balance Current income tax expense Maori tax credit PIE and Income tax paid to IRD Balance at 31 March

(838) 175 (57) 433 (286)

478 (191) (1,123) (838)

(773) 1,298 (1,174) 433 (217)

518 355 (522) (1,123) (773)

Prepaid expenses

Matahi Forest

Total

2 2 2 4

1,650 1,650

2 2 1,652 1,654

11 Income Tax

Note

Non taxable income includes: Share of equity accounted profits not received as distributions and CNI Manawhenua Settlement Income TĹŤhoe Charitable Trust is a registered charity and its net surplus is not taxable.

Because not all expenses are incurred in deriving taxable income, they are subject to apportionment based on an apportionment model. The taxable income above is after application of the apportionment model and is subject to confirmation by Inland Revenue when tax returns are assessed.

Taxes payable at balance sheet date includes PIE tax withheld by the managers of the investment portfolio. These taxes (2016:295,540 and 2015: $537,254) are paid to the IRD in April.

Deferred Tax (Parent and Group) Deferred tax liability/(asset) Balance 1 April 2014 Recognised in surplus or deficit - 2015 Balance 31 March 2015 Recognised in surplus or deficit - 2016 Balance 31 March 2016

He Korona Whakataena 43

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

12 Equity

Note

Retained Earnings

Fixed Capital

Revaluation Reserve

300,474 24,833 -

57,038 24,833 (279)

242,783

653

-

279

325,307

81,592

242,783

932

251,681 48,792 300,474

27,655 48,792 (653) (18,757) 57,038

224,026

-

18,757

653

242,783

653

254,412 9,248 263,660

30,386 9,248

-

39,634

224,026 224,026

246,385 8,029 254,412

22,358 8,029

224,026 -

30,386

224,026

-

Total Equity

Equity is as detailed in the Statement of Changes in Equity: Group 2016 Balance at 1 April 2015 Total Recognised Revenue Transfer to Revaluation Reserve Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2016

14 13

Group 2015 Balance at 1 April 2014 Total Recognised Revenue Transfer to Revaluation Reserve Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2015

14 14

Parent 2016 Balance at 1 April 2015 Total Recognised Revenue Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2016

Parent 2015 Balance at 1 April 2014 Total Recognised Revenue Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2015 This amount termed 'fixed capital' has been set aside as the capital received through Settlement, a transfer has been made from Retained Earnings to Fixed Capital of the Trust in the 2010, 2014 and 2015 financial years.

The amount transferred into fixed capital is determined as follows:

Year

Beneficial interest in Forest Land settled Accumulated Rents distributed in terms of DOS Less: Portion of Accumulated rents derived after 1 July 2009 Tūhoe Financial Redress (Comprehensive Settlement)

2010 2010

53,425 67,253

2010

(2,692)

2014

106,040 224,026

2015

18,757 242,783

Parent Te Ohu Kai Moana Trust Settlement

14

Group

44 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

NOTES TO THE FINANCIAL STATEMENTS

13 Crown Settlement - 2015 Tūhoe Waikaremoana Maori Trust Tūhoe Fisheries Charitable Trust Tūhoe Fish Quota Limited

|

For the Year ended 31 March 2016

Cash and Investment Deposits Property 3,583 1,405 4,988

1,060 1,060

TOKM Assets

Land

Fish Quota

Others

Total

18,757 18,757

8 8

4,028 4,028

(23) 18 100 95

4,629 18 24,289 28,935

The following adjustments were made in determining the value of the Crown Settlement: a) As explained in note 5, the Lake Waikaremoana asset, previously included at fair value in the financial statements of Tūhoe Waikaremoana Maori Trust, is regarded as a heritage asset whose fair value cannot be reliably measured. For this reason, its value in the financial statements of the Tūhoe Waikaremoana Maori Trust has been eliminated.

Restatement of crown settlement - 2015 In 2015, the financial statements of Tūhoe Fish Quota Limited were not available at the date of acquisition (1 August 2014). Since the 31 March 2015 financial statements the Trust was able to obtain the financial statements of Tūhoe Fish Quota Limited and therefore could correctly ascertain the balances received on settlement which has resulted in an increase in settlement income of $3,382,716 and has been incorporated into the above note.

Balances reported in 2015 financial statements:

Cash and Investment Deposits Property

TOKM Assets

Land

Fish Quota

Others

Total

15,439

-

4,479

89

20,906

3,318

-

(452)

10

3,383

Investment in Subsidiary Tūhoe Fish Quota Limited

899

Restated balance increase/(decrease) from 2015

506

-

Cash&Deposits was changed to $1,404,974 as we were able to obtain confirmation from the bank to what the actual balances were at 1 August 2014, whereas $898,694 used in the previous financial statements was an estimate based on adjustment to the bank balance of $1,550,603 as at 31 March 2015 of $651,909 calculated based on pre-acquisition net surplus for the 4 months to 31 July 2014 on the assumption that income was earned and costs incurred smoothly throughout the year.

TOKM Assets and Fish Quota shares were changed to $18,756,637 and $4,027,605 respectively as we obtained a valuation report supporting this as at 1 August 2014 which was not received for the 2015 financial statements.

14 Te Ohu Kai Moana Trust Settlement Fishing Quota Shares AFL Income Share (8754 Shares)

Note 15 13

GROUP 2016 2015 $ 000's $ 000's

8,703 10,054 18,757

8,703 10,054 18,757

PARENT 2016 2015 $ 000's $ 000's

-

-

AFL Income shares are based on the valuation completed by Taylor Duignan Barry Limited, Corporate Finance Specialist during September 2008.

He Korona Whakataena 45

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

15 Intangible Assets - (Fishing Quota Shares & NZUs) Intangible Assets (Group) TOKM AFL/TOKM ex Settlement Antons Quota Fishing Quota Shares Shares 2016 Opening balance Additions during the period Disposal during the period Revaluation Gain/(Loss) Balance at 31 March 2016 2015 Opening balance

CRA Quota Shares

Paua Quota Shares

NZ Units

Total

9,114 143 9,257

451 (0) 451

2,463 127 2,590

1,907 1,907

13 9 22

13,948 279 14,226

-

-

-

-

-

-

Received as part of Crown Settlement (date of Acquisition 1 August 2014)

8,703

-

1,925

2,103

8

12,738

Additions during the period Disposal during the period Revaluation Gain/(Loss) Balance at 31 March 2015

411 9,114

556 (105) 451

538 2,463

(196) 1,907

5 13

556 653 13,948

During September 2010, TĹŤhoe Fish Quota Limited received a one off allocation of 1967 New Zealand Units (NZU's). A further 39 units were received in August 2013, from te Ohu Kai Moana Maori Fisheries Trust relative to the coastline settlement. The NZU's are recognised in the Financial Statements at a fair value (2015:$NIL).

Quota is valued annually by independent valuation (fair valued less costs to sell). Quota was valued by Quota Management System Limited, an independent brokers. These valuation was based on historical and current FishServe data, market intelligence and advice from professional industry valuers. Adjustments were made for current knowledge of market values on certain species. The valuation report was completed on 7th September 2016, on the market value of the fishing quota as at 31st March 2016.

16 Cash and Cash Equivalents

2016 Interest Rates

Parent ASB Current Account - TUT ASB Fast Saver - TUT ASB - Te Urewera Board held in Trust

0.90% 1.50% 0.90%

Group ASB Current Account ASB Fast Saver BNZ 30 day Term Deposit BNZ Current Account BNZ Fast Saver Westpac Current Account

0.90% 1.50% 3.71% 0.25% 1.00% 0.00%

Total for Group

46 TĹŞHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Note

23

2016 $ 000's

2015 $ 000's

522 1,074 149 1,746

165 4,769 261 5,195

1,762 6,754 224 231 8,970 10,716

4,212 7,289 1,213 81 145 12,940 18,134

NOTES TO THE FINANCIAL STATEMENTS

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For the Year ended 31 March 2016

17 Term Deposits

2016 Interest Rates

Parent ASB Term Deposit - TUT TĹŤhoe Charitable Trust ASB Term Deposit - TCT BNZ Term Deposit - TCT ASB Term Deposit - TFQL

Note

2016 $ 000's

2015 $ 000's

3.42%-3.77%

9,038 9,038

9,000 9,000

3.00%-4.00% 3.20%-4.00%

5,147 3,838 1,300 10,285 19,323

2,200 1,405 3,605 12,605

Total for Group

18 Investments (Financial Portfolio)

Opening portfolio balance Add : New Investment Less: Funds Withdrawn Income received from share of PIE realised

9.2

Gains/(losses) from changes in unit price-unrealised

9.3 b

Management Fees paid Tax Deducted

AMP $ 000's

FNZ $ 000's

PARENT & GROUP 2016 ANZ NZAM $ 000's $ 000's

115,202 (63,000)

54,404 (5,000)

53,000 -

169

2,737

(304) (690) (443) 50,934

Note

2015 TOTAL $ 000's

TOTAL $ 000's

15,000 -

169,606 68,000 (68,000) -

111,186 43,000 -

1,162

634

4,702

5,464

(99)

413

(907)

(897)

12,034

(172) (409) 51,461

(6) (41) 54,528

(26) (1) 14,699

(894) (895) 171,622

(954) (1,123) 169,606

Funds are invested under the terms of the Trust's Statement of Investment Policies and Objectives (SIPO) as formulated by the Investment Committee and approved by the TUT Board. The investment portfolio was previously managed by AXA Global Funds, whose business was acquired by the AMP Group and the funds are now under management by AMP Capital. A second investment portfolio is being implemented and managed by First New Zealand Capital. This is a passively managed strategy with investment primarily in market indices. During the year Investment Committee recommanded diversification strategy. As a result, funds have been transfered to ANZ Investment and NZAM (passive fund).

All Managed funds are represented by units an as per the terms of the SIPO. Investments are selected to give a spread to minimise risk while giving adequate returns. The fair value of shares are measured using directly observable market inputs and are not based on quoted prices.

19 Other Current Assets Tax Account Receivables Pre-Paid expenses Accrued Income

2016 GROUP PARENT $ 000's $ 000's

32 79 110

24 28 52

2015 GROUP PARENT $ 000's $ 000's

4 19 72 96

(14) 10 37 33

He Korona Whakataena 47

NOTES TO THE FINANCIAL STATEMENTS

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For the Year ended 31 March 2016

20 Property, Plant and Equipment and Intangibles a.i) Property, Plant & Equipment (Group) Land

Buildings

Fixtures & Fittings

296 242 0 538

15,164 539 (549) 15,154

406 22 (39) 388

167 17 0 184

492 109 (24) 577

Additions during the period Disposal during the period Impairment Balance at 31 March 2016 Accumulated Depreciation: Opening balance Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2015

3,058 0 (295) 3,301

1,540 (76) 0 16,618

24 0 0 412

162 0 0 346

0 0 0 0

0 307 0 307

58 54 (16) 96

Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2016 Net book value 31 March 2016

0 0 0 3,301

304 0 611 16,007

49 0 144 268

$ 000's At Cost: Opening balance Additions during the period Disposal during the period Balance at 31 March 2015

Motor Plant & Computer Vehicles Equipment Equipment

Art & Archive

Total

283 39 (25) 297

595 8 0 603

17,402 975 (637) 17,741

24 0 0 601

55 0 0 352

4,863 (76) (295) 22,232

64 33 0 97

45 93 (13) 125

70 74 (23) 121

56 0 153 193

86 0 210 391

71 0 192 160

0 0 0 603 0 7 87 0 94 0 64 0 158 445

244 647 (52) 839 629 0 1,468 20,763

The land at Ruatahuna received via consolidation has been leased out to Housing New Zealand Corporation and community members who has their houses on the land. Generally these lease agreements are long term agreements with review clause.

The Building includes work-in-progress on a building in Waikaremoana. The payment made towards the work as of the balance date was $1,490,121. a.ii) Property, Plant & Equipment (Parent) Land

Buildings

Fixtures & Fittings

296 234 530

15,164 539 (549) 15,154

406 13 (39) 380

167 17 184

489 61 (24) 526

283 34 (25) 292

Additions during the period Disposal during the period Balance at 31 March 2016 Accumulated Depreciation: Opening balance Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2015

2,758

9

36

18

31

3,288

50 (76) 15,127

389

220

544

-

307 307

58 53 (16) 95

64 33 97

Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2016 Net book value 31 March 2016

3,288

304 611 14,516

47 142 246

33 130 89

$ 000's At Cost: Opening balance Additions during the period Disposal during the period Balance at 31 March 2015

48 TĹŞHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Motor Plant & Computer Vehicles Equipment Equipment

Art & Archive

Total

595 8 603

17,399 906 (637) 17,668

323

603

2,902 (76) 20,493

45 84 (13) 116

70 73 (23) 120

7 87 94

244 637 (52) 829

72 188 355

63 183 140

64 158 445

584 1,413 19,080

NOTES TO THE FINANCIAL STATEMENTS

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For the Year ended 31 March 2016

b.i) Intangibles - Computer Software (Group) $ 000's At Cost: Opening balance Additions during the period Balance at 31 March 2015 Additions during the period Balance at 31 March 2016

241 241 7 249

Accumulated Amortisation: Opening balance Charge for the period Balance 31 March 2015

72 72

Charge for the period Balance 31 March 2016 Net book value 31 March 2016 b.ii) Intangibles - Computer Software (Parent)

67 139 110 $ 000's

At Cost: Opening balance Additions during the period Balance 31 March 2015

241 241

Additions during the period Balance at 31 March 2016

7 249

Accumulated Amortisation: Opening balance Charge for the period Balance 31 March 2015

72 72

Charge for the period Balance 31 March 2016 Net book value 31 March 2016

67 139 110

He Korona Whakataena 49

NOTES TO THE FINANCIAL STATEMENTS

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For the Year ended 31 March 2016

21 Investment Property

Group Papakua Property $ 000's

Papatoetoe Property $ 000's

340 190 530

-

-

-

340 190 530 -

Received as part of Crown Settlement (date of Acquisition 1 August 2014)

340

720

1,060

Additions during the period Disposal during the period Revaluation Gain/(Loss) Balance at 31 March 2015

340

(720) -

(720) 340

Available for Sale Assets: 2016 Opening balance Revaluation Gain/(Loss) Balance at 31 March 2016 2015 Opening balance

Total $ 000's

Investment property is stated at fair value and is not depreciated.

The Papakura property was valued by Property Valuations Limited of Auckland, Registered Valuers at 11 April 2016.

22 Biological Properties Matahi Forestry Rights $ 000's

Parent Total $ 000's

Group Total $ 000's

535

535

535

Increase due to assets acquired through a non-exchange transaction

9,427

9,427

9,427

Revaluation Gain/(Loss) Balance at 31 March 2016

9,963

9,963

9,963

-

-

-

Available for Sale Assets: 2016 Opening balance Additions during the period

2015 Opening balance Additions during the period Balance at 31 March 2015

The Matahi Forest was purchased during the year. The Forestry rights have been valued by PF Olsen Limited from Rotorua at 30 June 2016.

50 TĹŞHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

NOTES TO THE FINANCIAL STATEMENTS

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For the Year ended 31 March 2016

23 Creditors and Accruals Accounts Payable PAYE, Kiwisaver & Student Loan deductions GST Payable HR Liabilities Funds in Custody Te Urewera Board Operations 8 Te Maara-a-Te-Atua Te Hui Ahurei a TĹŤhoe Rental Income received in advance Accrued Expenses

Note

17

GROUP 2016 2015 $ 000's $ 000's

PARENT 2016 2015 $ 000's $ 000's

734 84 120 146

248 54 105

216 59 10 117

143 40 99

175 80 14 125 140 63 1,682

261 131 14 140 192 1,145

175

261 127 670

29 607

The funds in custody are amounts held in Trust on behalf of the respective entities or a specific purpose.

24 Related Parties Transactions with related parties: Receipts CNI Iwi Holdings Ltd - Distribution of Forestry Land rents Payments Te Urewera Board - Shared Costs Contribution to Te Urewera Board Waikaremoana Tribal Authority Charitable Company Ltd Funds in Custody - Te Urewera Board Related parties include:

Note

10

2016 GROUP PARENT $ 000's $ 000's

2015 GROUP PARENT $ 000's $ 000's

-

6,352

-

2463

-

51 72

150 -

150 -

175

261

175

261

418 38 9 638

144 38 9 459

311 52 29 582

296 52 26 579

23 4 2 8

7 4 2 4

7 4 2 4

7 4 2 4

Trustees and Investment Committee Members of the Trust Directors of CNI Iwi Holdings Ltd appointed by TUT Management team Transactions with Key Management Personnel: Governance Payment Investment Committee Representation Fees Management team (Salaries) No amounts were due and unpaid at balance date.

Number of Key Management Personnel: Governance Investment Committee Directors in Associates Management team

The Governance Payments are set fees per annum for the Parent. There was a one off arrear payment included in the last year Parent balance. The Group includes set periodic payments and meeting fees.

Investment Committee and Directors payments are based on number meeting they attend.

All Management team are on a salary basis.

He Korona Whakataena 51

NOTES TO THE FINANCIAL STATEMENTS

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For the Year ended 31 March 2016

25 Financial Instruments (Financial Risk Management) The Tūhoe Te Uru Taumatua Statement of Investment Policy and Objectives (SIPO) provides parties involved in the investment management of the Trust Fund with a working document that identifies the investment objectives, strategy, constraints and performance measurement criteria for TUT. The Trust Fund comprises two broad portfolios of assets; the Financial Portfolio; and the Closely-Held Asset Portfolio.

The Trust Fund is defined in the Tūhoe Trust Deed as “all property that is from time to time held by the Trustees on the trusts of this Deed.”

Bank accounts, short term deposits, accounts receivable, investments, accounts payable and advances to associates are financial instruments.

Credit Risk Credit risk is the risk of loss that arises from a counterparty failing to meet their obligations in full and on time.

The maximum exposure to credit risk is represented by the carrying value of each financial asset and financial liability in the Balance Sheet. Bank accounts and short term investments are all with trading banks with investment grade credit ratings.

The Investment Manager (AMP Capital) of the Financial Portfolio uses a multi-manager approach, thereby reducing the exposure to any single manager and counterparty. Assets are held separate to the Investment manager’s own assets under trust.

The Trustees, in consultation with their investment advisors, have developed TUT's Statement of Investment Policies and Objectives ("SIPO") which stipulates a diversified investment strategy which reduces the credit risk exposure of the Trust.

Interest Rate Risk Interest rate risk is the risk that the value or future value of cash flows from a financial instrument will fluctuate because of changes in interest rates.

The Trust has low exposure to interest rate risk on short term deposits which are sensitive to changes in interest rates.

Bond holdings are well diversified by issuer and by maturity date.

Foreign Currency Risk Currency risk is the risk of change in fair value of financial instruments due to fluctuations in foreign exchange rates.

Currency risks from shares are actively hedged within controlled limits by the Investment Manager. Currency risks from bond investments are generally fully hedged.

Liquidity Risk Liquidity risk represents the Trust's ability to meet its contractual obligations. The Trust evaluates its liquidity measurements on an ongoing basis. TUT generates sufficient cash flows from its activities to meet its obligations arising from its financial liabilities.

Market Price Risk Market price risk is the risk that changes in market prices, such as equity prices or timber prices, will affect the Trust’s profit or valuation of net assets. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

The Trust has considerable investments in a number of Wholesale Unit Trusts that are of a liquid nature. In order to achieve the Trust’s Investment objectives and reduce risk exposures the Trustees have allocated these funds across a number of asset classes and applied benchmarks and ranges to further reduce market risk.

The Trust also has a significant Investment in CNI Iwi Holdings in terms of the Central North Island Forests Deed of Settlement and therefore there is a concentration of market risk associated with this investment.

Financial Instruments Financial Assets Loans and receivables Cash and Cash equivalants Receivables from non-exchange transactions Other Current Assets Held to Maturity Term deposits Available for Sale Investment in AFL shares Fair value through surplus or deficit Investments Financial Portfolio) Financial Liabilities Liabilities at amortised cost Accounts payable under exchange transactions

52 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

Note

2016 GROUP PARENT $ 000's $ 000's

2015 GROUP PARENT $ 000's $ 000's

10,716 1,250 79

18,134 264 28

1,746 662 72

5,195 39 37

19,323

12,605

9,038

9,000

10,054

10,054

-

-

171,622

169,606

171,622

169,606

1,191

846

420

531

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

26 Capital Management The Trust's capital includes Fixed Capital, Retained Earnings and Fair Value Reserve.

The Trust's policy is to maintain a strong capital base so as to sustain Iwi and Tribal Development to provide benefits to its various Hapu (Marae Groups) and individual beneficiaries.

The Trust is subject to externally imposed capital requirements under the Central North Islands Deed of Settlement and CNI Iwi Holdings Trust Deed and Shareholders' Agreement. These agreements limit the ability of TUT to dispose of its beneficial interest in Central North Island Forest Land for a period of at least 10 years.

The Group's policies in respect of capital management and allocation are reviewed regularly by the Board of Trustees.

27 Operating Leases The Trust has operating leases for office equipment The total value of minimum lease payments is due as follows:

Group $ 000's 24 59 83

Not later than one year Later than one year and not later than five years Later than five years

Parent $ 000's 19 42 61

28 Statement of comparative information Impact on items in statement of financial position Intangibles (Fishing Quota Shares & NZUs) Group Balance reported at 31 March 2015 Correction to settlement on 1 August 2014 (refer to Note 13) Fair value adjustment as at 31 March 2015 (1) Adjustement to bring deferred tax Adjustment to remove investment property reserve Restated balance at 31 March 2015

9,862 3,432 653 13,948

Accumulated Surplus 296,391 3,432 653 (2) 300,474

Impact on items in the statement of comprehensive revenue and expense T큰hoeCrown Treaty Settlement

Other Income

25,553 3,383

505 50

28,935

(505) 50

(1) In the previous year, Fisheries Quota Shares were valued at cost. The same has been now restated at its fair market value.

(2) Investment properties were revalued and revaluation reserve was credited for the amount appreciated in the value. The correct treatment for the appreciation was to go through profit and loss account under Other Revenue and not Other Comprehensive Revenue and expenses. The restatement has corrected the entry.

29 Commitments and Contingencies High Court proceedings have been commenced against the Trust (previously T큰hoe Waikaremoana Maori Trust Board) by Te Wairua O Te Ora Limited. At the time of publication of these financial statements a hearing date was set for June 2017.

The Matahi forestry rights purchase was an agreement with Crown Forestry established to return crown forests under a treaty settlement. In 2008, the Crown purchased 20 years forestry rights over the Matahi trees owned by Matariki Forests. The underlying land was a subject to a complex grievance dating back to the original purchase by the Crown in 1896. Under the term of the agreement, during the twenty year term of the forestry right, the Crown may purchase the other interest in the property. The Crown's option to purchase the land is assignable to Te Kotahi a T큰hoe, the T큰hoe entity mandated for Treaty negotiations. The land and the forest were claimed by the Waimana hapu. There were access difficulties into the forest.

Ngati Manawa has gone back to court to argue that the adjudication did not properly allocate Kaingaroa. The legal fees that will arise as a result of this are unknown.

He Korona Whakataena 53

NOTES TO THE FINANCIAL STATEMENTS

|

For the Year ended 31 March 2016

30 Contingent Asset One of the Investment funds, Managed by FNZ, invested in US based Funds and have deducted 30% withholding tax on this income.

Under the DTA the Trust is only required to pay tax of 15% on the income. As a result, a US tax return will be filed to claim this tax refund from IRS. It is expected that this refund could be around $300,000. No provision has been made for this in the financial statements.

31 Events after Balance Sheet Date Subsequent to balance date, the land of five schools were purchased from the Crown by TĹŤhoe Te Uru Taumatua for a total cost of $376,500.

54 TĹŞHOE - Te Uru Taumatua | twenty fifteen - twenty sixteen

NOTES

He Korona Whakataena 55

NOTES

56 TŪHOE - Te Uru Taumatua | Twenty Fifteen - Twenty Sixteen

TELEPHONE: 07 312 9659 EMAIL: tari@ngaituhoe.iwi.nz 12 Tūhoe Street, Tāneatua, PO Box 56, Tāneatua 3163

www.ngaituhoe.iwi.nz