He Korona Whakataena 2014 - 2015

he korona whakataena 2014 - 2015

E te iwi tēnā koutou katoa Anei nā tātau e whakatikatika nei i a tātau With new breath we order our affairs for a kaupapa whakahaere mō nā Tūhoe o āpōpō; a coming Tūhoe generation appreciating that tātau tamariki mokopuna. Ia tātau e whakapiki the truly wealthy are those who enjoy with mana ana me noho nākau iti koia hoki te tino gratitude what they have. We build new Tūhoe tohu o te ranatira. Kua kitea kautia atu nā mahi institutions in humility to keep us real and whakahoki mai i te hira me te wana o tō tātau kāina respectful. We catch glimpses of a future where o Te Urewera. Mā tātau katoa, mā nā Taraipara, mā Te Kawa o Te Urewera restores our homelands, Te Uru Taumatua e whakauta te waka e whakaeke reviving nature’s ability to sustain us. With the nā kupu kōrero e kii nei; He Korona Whakataena.

groundwork now laid for Blueprint priorities,

Nāku nā

Te Kawa o Te Urewera and our Tribal Spatial Plans

Tā koutou ponona

we have tomorrow’s answers for today’s questions.

Kia ora tātau katoa

With clarity and confidence for our Tūhoe future we present our reports today.

Tāmati Kruger, Chair

CON T ENT S The Board Report

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The Blueprint Teams Mahi

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1 2

Anamata - Tūhoe Futures Onukurani - Tūhoe Biosphere Iwi - Tūhoe People Whairawa - Infrasture and Resources Ōhana - Tūhoe Working Groups Tūhoe Resources

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The Tūhoe Trust Fund Tūhoe Tribals

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Te Urewera

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Audited Finance

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PHOTOS: Front Cover, Back Cover, 1, 2, 5, 8, 14, 17 - Birgit Krippner

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he iwi whakamoe tau

T HE B OARD R E POR T

The 2014-2015 was a notable Tūhoe year. We opened Te Kura Whare in March, completed the Central North Island Mana Whenua allocation process in June, scripted legislation that was passed in July, received a 7 year overdue apology from the New Zealand Police for the Te Urewera Raids of 2007, opened the Tāneatua Medical Centre and for that matter the Mou Mou Kai Café. Midway, we celebrated an emotional Tūhoe-Crown Settlement Day where we collectively admired our tīpuna for selflessly giving of their life purpose to bring us an unseen but proud future, we switched on Te Urewera Act and brought the influence of our lands back into our hands.

In November we respected the effort of previous Tūhoe Boards, the Tūhoe Māori Trust Board, Te Kotahi a Tūhoe and the Tūhoe Fisheries Charitable Trust for coordinating this progress and we rounded off the year growing the team to ready ourselves for invigorated development.

Together, as we search for the lessons from the year now done, we see that we have experienced, counted and witnessed the passing of the seasons and with them our loss and gains, our joy and sadness, our evolving vision

for future Tūhoe generations. With satisfaction, we are reminded that only change and Tūhoetana remain the constants in life.

He tanata whakamoe tau, he Iwi whakamoe tau.

Weathered by today, we find that common sense is not yet common practice. We are evolving rapidly compared to yesteryear, our Tūhoetana a calm calling, lest we lose our past and miss our future. We regret the failure to remedy our faulty and sad relationship with Ngāti Haka Patuheuheu after a promising plan at last year’s Hui ā Tau. We cheer on the forthcoming rise in Tribal Leadership, influence and prosperity truths for whānau, hapū, hāpori and Tūhoe entrepreneurs. The whānau, hapū and Tribal development is indeed the pathway to our secure future.

It is a grand occasion, when our Tūhoe Tribals, your Te Urewera Board and whānau come together sharing He Iwi Whakamoe Tau 2015.

Nā mātau nei, Nā Te Poari o Tūhoe Te Uru Taumatua

he korona whakataena

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THE BLUEPRINT TEAMS MAHI

anamata

TŪHO E FU T URE’ S

IDENTITY • Three Iwi registers are combined to form one single Tūhoe Iwi Register. More Tūhoe are choosing to register online on the iwi website. As at 1 April 2015, there were 8970 and now there are 9426 registered Iwi members above 18 years of age.

• Our purpose for the Iwi register suggests a need for a redesign with Tribals in mind. Key discussions focus on whakapapa-identity or infrastructure-demography purpose.

• Heritage work plans are activated with key government heritage departments to enable access to Tūhoe tāona.

• Tāona tūturu protocols are raised with the Ministry of Culture and Heritage.

HERITAGE • Commemoration event is held to celebrate and acknowledge past Tūhoe Iwi entities. For 60 years, the Tūhoe Waikaremoana Māori Trust board led the development of Iwi affairs.

• Te Wharepuri infrastructure and policy is embedded.

• A new Project Analyst position is created.

KNOWLEDGE • Tribal operating infrastructure and constitutional arrangements designed and trialled.

• Tribal development takes effect, operational models developed and approved. Tribals recruit general managers. A forum for Tribal general managers assists the development of policies, resource allocation, planning and priorities.

PERMANANCY • Work experience is offered to Tūhoe candidates to enthuse a desire to work for the Iwi and the Te Komiti Whāiti - A Tāona A Tanata addresses the state of Tūhoe tikana. he korona whakataena

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ōnukurani

TŪHO E B IO S PHER E

TE UREWERA • The planning steps to undertake a biodiversity health measure of Te Urewera was investigated in a programme of work in Waikaremoana, Rūātoki and Waimana whārua, with the Ruatāhuna whārua field trip yet to be undertaken. Each Tribal nominated up to two people to accompany the team providing an opportunity for improved capability and upskilling.

• New approach to Te Urewera hunting and possum block permits were designed and implemented.

Feedback from hunters and general public continues to be overwhelmingly positive.

LAND USE • Tūhoe electoral areas of Kaitawa, Tūāi and Piripaua are successefully moved out of the Ikararoa-Rāwhiti electoral area and into the Waiariki electorate, meaning all Tūhoe living within the Tūhoe area of interest are now in one Māori electorate.

• Overlapping Iwi mana whenau have implications for the management of Te Urewera, usually taking the form of notification relating to management planning.

In all cases Te Urewera Board maintains management and governance responsibilities.

• The Tūhoe Relationship Protocols with the Bay of Plenty Regional Council and an Integrated Planning Protocol with Bay of Plenty and Hawke’s Bay Regional Councils and the Whakatāne and Wairoa District Councils is being used to mitigate planning rules that may impact on Te Urewera and the lives of Tūhoe within these whārua.

• A Civil Defence template was prepared and distributed to Tūhoe Tribals for each to design their own readiness programme to deal with a major natural or medical pandemic emergencies.

“Kia Ora - I have just renewed a permit under the new system. Also familiarised myself with your webpage. I was impressed by the balance I saw in the kawa expressed between the Manuhiri and Tanata Whenua when visiting this area.”

Na Nick Coyne 4

TŪHOE Te Uru Taumatua | 2014- 2015

iwi

TŪ HOE P EOPLE

HEALTH • Tāneatua Medical Centre has opened and operating with a 32% increase in enrolments from August 2014 to 1 April 2015.

• A full clinical team is engaged, a Doctor, Physician Associate, Practise Nurse, Practise Manager and Medical Receptionist.

HOUSING • Over 1000 smoke alarms have been installed in homes throughout Tūhoe rohe, in partnership with Tribals, the New Zealand Fire Service, Tāneatua Voluntary Fire Brigade, Tāneatua Lions Club and the Tāneatua Community Board.

• Oral Health Workplan developing.

• A Housing New Zealand list of properties, tenants and land trust details situated in the Tūhoe rohe now exists.

• A Waimana temporary General Practice service is established in December 2014 and has 131 enrolled whānau as at 1 Arpil 2015.

EDUCATION • Political support for new Tūhoe education approach embedded for 2015 progress.

• New Manager for Housing and Education portfolios recruited.

ENROLMENTS - TĀNEATUA MEDICAL CENTRE 1000 800 600 400 200 0

Sept 14

Oct 14

Nov 14

Dec 14

Jan 15

Feb 15

Mar 15

April 15

he korona whakataena

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whairawa

INFRAS T RU CT URE AN D RE S O UR C E S

ECONOMIC GROWTH • The Tūhoe Waikaremoana Māori Trust assets are transferred to the Tūhoe Charitable Trust and are under the governance and management of Te Uru Taumatua.

• An Operations Manager Business Development is employed.

COMMERCIAL ASSET DEVELOPMENT • The Tāneatua Railway property is now under Iwi ownership.

• An Operations Manager of Property is employed.

“I really enjoyed the tour and was really amazed with what it is going to achieve in the future and I love the building. It is really creative I think.”

Caitlyn Anne Van den Bosch, Tāneatua School

“I am proud to be Tūhoe. I loved everything about the wharehou.”

Teahu-Whenua Moke, Tāneatua School

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TŪHOE Te Uru Taumatua | 2014- 2015

TE URU TAUMATUA SHARED SERVICES • Redevelopment work is completed at at 22 Tūhoe Street, the previous Te Uru Taumatua office space, to be fit for purpose for the Tāneatua Medical Centre. A certificate of public use has been issued.

• The Mou Mou Kai Café fit out is complete and a Whakatāne District Council food consent received.

Four roles are created; chef, kitchen hand, front of house and a casual kitchen hand.

• Architects and Builders are appointed for the Waikaremoana and Ruatāhuna build projects. Design work underway. The proposed build site is cleared and a geotechnical investigation is completed.

• Training to maintain the unique Te Kura Whare building features is completed. Testing of the building systems continues.

• Te Kura Whare building performance information is collected for the requirements of Living Building Challenge over the first 12 months of occupancy.

• Te Kura Whare receives two 1st place awards at the New Zealand Property Awards in 2014. Te Kura Whare wins the New Zealand Supreme award for Sustainability and then later in October the Purple Pin awarded by the New Zealand Design Institute – for best in Design.

ōhana

TŪHOE WO R K IN G G RO UPS

TE KOMITI WHĀITI – A TĀONA A TANATA • Led tikana discussions for Te Uru Taumatua in the lead up to Te Kura Whare opening day and Settlement Day. • Tūhoe representation principles are developed by Te Komiti Whāiti - A Tāona A Tanata.

• Providing whakapapa support and information for whānau registering with the Iwi. • Advising on the care of tāona, mana whenua issues – Ruapani Whakapapa, Kainaroa Central North Island.

• Actively debating the strengthening of Tūhoe customary practises for example rāhui, supporting the pae and use of te reo.

REGISTERED TŪHOE BY AGE Over 65 13% 1 - 14 years 1.5%

15 - 29 years 19%

30 - 64 years 66.5%

INVESTMENT COMMITTEE • The Statement of Investment Principles (SIPO) was reviewed and the annual investment manager review completed by the committee.

KAINAROA ADVISORY COMMITTEE • The Kainaroa cultural redress sites are returned fee simple to Tūhoe.

TŪHOE FISH • In 2014 the Tūhoe Fisheries Charitable Trust consolidation was completed and progress was made towards reviewing Tūhoe Fish Quota Ltd which has also now been completed.

DEPARTMENT OF CONSERVATION • Te Uru Taumatua and Department of Conservation hold series of hui aimed at smoothing the way to an effective working post-settlement relationship.

AS AT 1 APRIL 2015: The oldest registered Tūhoe person was 95 years old and the youngest member was 1 year old.

he korona whakataena

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T的HOE RESOURCES 8

T的HOE 2014- 2015

tūhoe trust fund The Tūhoe Trust Fund is comprised of a variety of assets intended to provide long term benefits to Tūhoe. It is defined in Part 4 of Tūhoe Trust Deed as “…all property that is from time to time held by the Trustees on the trusts of this Deed.” The Tūhoe Trust Fund comprises two broad portfolios of assets, the Financial Portfolio and the Closely-Held Asset Portfolio. The different economic nature of these assets, combined with different reasons for owning and continuing to hold the investments in each of the two portfolios, warrants distinct management and governance structures for the two portfolios.

FINANCIAL PORTFOLIO This portfolio includes cash deposits and investments in liquid securities, generally traded through public markets complemented by conservative use of derivative overlays where this is efficient. The Tūhoe Trust has elected to rely upon external investment managers. Investment is made through reputable managed funds, which invest in bonds, equities, and alternative investments.

TŪHOE TRUST FUND

THE SHORT STORY MADE

Investments • CNI Income • Subsidiary Income

Investment Committee

Financial Portfolio ($170m)

The mix of commercial and non-commercial reasons which focus on the economic growth and development of Tūhoe communities means that the Closely-Held Portfolio is unlikely to generate the same return on investment as the Financial Portfolio.

23M

TŪHOE TRUST FUND STRUCTURE

Financial Investment

CLOSELY-HELD ASSET PORTFOLIO The Tūhoe Trust preserves Forestry, Fish and other assets.

Whereas the Financial Portfolio has been structured for pure investment and risk management considerations, the assets in the Closely-Held Asset Portfolio have been acquired through a range of processes and diverse reasons including legacy, culture and heritage and strategic.

6M USED

Operations

Closely-Held Assets

Term Investment ($14m)

Real Assets ($124m)

Property Management

Land Management

Ops & Annual Priorities • Tribal Economic Development • Development Projects • Tax/Depreciation

Fisheries Quota

Other Investments

=

17M AVAILABLE

Tribal Development • Infrastructure Projects • Reinvestment

he korona whakataena

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Millions

TŪHOE PORTFOLIO PERFORMANCE 200 180 160 140 120 100 80 60 40 20 0

PIE Invested Value PIE Market Value

Jan 15

July 14

Jan 14

July 13

When the BLUE line is on top, we are earning from our Portfolio. During Mid’ 2011, there was the sharp drop in stock prices (about 20%) in stock

Jan 13

July 12

Jan 12

July 11

Jan 11

July 10

The BLUE line is the value we receive if we exit from this today. The GREEN line is our principal investment. Every time the GREEN line moves up, that means we have invested more money into our Portfolio.

exchanges across the United States, Middle East, Europe and Asia. This was due to fears of contagion of the European sovereign debt crisis in Spain and Italy, as well as concerns over France’s current AAA rating, plus concerns over the slow economic growth of the United States and its credit rating being downgraded. Severe volatility of stock market indexes continued for the rest of the year.

TŪHOE EQUITY

UP BY 18%

TŪHOE EQUITY The following graph shows change in Tūhoe Equity:

Fixed capital is a part of that equity that has been received via settlement. It includes: The amount transferred into fixed capital is determined as follows:

Year

Beneficial interest in Forest Land settled 2010 Accumulated Rents distributed in terms of Deed of Settlement 2010 Tūhoe Financial Redress 2014 Te Ohu Kai Moana Trust Settlement 2015

Fixed Capital

Retained Surplus

Tūhoe Equity

$ 000's 53,425 64,561 106,040 15,439 239,465 56,926 296,391

TOTAL TŪHOE EQUITY/NET WORTH 350 300 Millions

250 200 150 100 50 0

March 31, 10

March 31, 11

Fixed Capital

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TŪHOE Te Uru Taumatua | 2014- 2015

March 31, 12

Accumulated Earnings

March 31, 13

March 31, 14

March 31, 15

TŪHOE ASSETS

AR & Others 0% Subsidiary Companies 20%

Fixed Assets 6.9%

Bank 6% Shares & Fishing Quota 7% Term Deposits 4%

Financial Portfolio 57%

TŪHOE FINANCIAL PORTFOLIO Property - AUS 3% Property - Global 4%

Property - NZ 1%

Infrastructure - Global 2%

Global Shares 26%

BRIC Shares 5% Commodities 3%

AUS Shares 10%

Global Bonds 13%

Term Deposits 17% NZ Bonds 13% SIPO is our Tūhoe policy that declares the investment range for each fund that the Investment Managers are permitted to work within. Currently, Stock markets around the world are performing better and that is the reason,

NZ Shares 4%

our 45% investment is weighted in favour of shares. Your Investment Committee can move this investment around other sections as they see the opportunities or risk, but only within strict approved bench marks. he korona whakataena

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te kura whare

THE T Ū H OE L IV IN G BU ILD IN G

It is true that by international standards, Te Kura Whare is meeting the standards of the Living Building Challenge – so called because it ‘challenges’ current ‘normal’ building practices, codes and standards causing the dangerous erosion of our lands and environment. Moving beyond protest, the architects of The Living Building Challenge have raised a new construction standard that demands respect for the environment, bans poisonous materials that infect the environment, calls for discipline around the purpose, use and function of buildings to ensure harmony with surrounding nature and community.

Te Kura Whare, our translation for the Living Building – uses Kura in its meaning of a thing treasured and precious – and what could be more priceless than a life with purpose with direction expressing what we wish to be and where we want to get to - Living. Te Kura Whare is our symbol and our real-life structure for a better Tūhoe life.

The whole-of-life impact of Te Kura Whare was considered and addressed throughout every stage of its development; including design, material selection, construction process and future needs. A snapshot on how Te Kura Whare works: • Building orientation maximises sunlight capture and natural ventilation; for lighting, passive solar heat, and powering the largest solar electric array in New Zealand, with an 85kwp generating estimated 125,000kWh per annum, excess shared with national grid. Expected working life of 40-years.

• 6000 exposed earth-bricks, manufactured by unskilled local community, regulate internal air temperature and moisture levels.

• Rainwater harvested into two 25,000l tanks for potable and non-potable water, a large productive landscape zone for traditional edible and medicinal plants.

• Wastewater is treated on site in a constructed wetland treatment system and sub-terrain dispersal field.

• A ‘world first’ seismic structural design of bored round log piles and shear walls enables the building to withstand a 1-in-2000-year seismic event and operate as a civil defence centre.

• Timber structure and finishes are primarily timber; 95% of which was sourced from FSC (Forest Stewardship Council) certified local forests.

FUNCTION OF THE TE KURA WHARE • Cultural Facility and Complex - Events Centre • Iwi Office • Café • Archive and Library • Te Urewera Office

LIVING BUILDING CHALLENGE SITE - restoring a healthy co-existence with nature.

HEALTH - creating a environment that optimises health and well being.

WATER - creating water independent sites, buildings and communities.

BEAUTY & INSPIRATION - celebrating design that uplifts the human spirit.

ENERGY - relying on current solar income

MATERIALS - using products that are safe for all species through time.

EQUITY - support a just equitable world

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TŪHOE Te Uru Taumatua | 2014- 2015

THE T的HOE TRIBALS

te komiti o runga

T RI BA L AU THO RIT Y

I roto i te tau kua pahure ake nei ka whakamanahia te kamupene whakahaere i nā mahi a Te Komiti o Runga.

Ko tāna he whakatutuki i nā kaupapa a nā hapū i roto mai o te whārua o Rūātoki. Kāre i roa i muri mai ka tohua te Kaiwhakahaere hou hei kōkiri i nā mahi, ko Terehia Biddle tēnā. Whai muri mai ka waihanatia e nā hapū tā rātau Māhere Mahi-ā-Tau e hīkoitia ai e rātau te huarahi whakatutuki i nā moemoeā, nā manako, nā kaupapa matua a te whārua. I roto i nā whiriwhirina whakaaro, ka whakatauhia ko ēnei kaupapa hai whai; te hauora o Rūātoki; te hāpai i te mauri o Te Urewera; te Pāpaoho kōrero; te hā o te reo me te whakapūmau i nā tikana; te whakawhanake i te whārua; te waihana i te whare hou o Te Komiti o Runga me te tautoko i ō tātau pākeke.

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TŪHOE Te Uru Taumatua | 2014- 2015

Nō te marama o Ākuhata ka tohunia nā rinarina mahi o te tari. Ko te mea mīharo - whakapapa katoa nā kaimahi ki te hau kāina. He mea nui tēnei ki a Te Komiti o Runga kia kanohi kitea mai a Tūhoe i roto i āna mahi katoa. Kao katoa mai o rātau pūkena, pūmanawa he tānata e mārama ana ki nā tūmomo mahi whakahaere kaupapa pākihi, ōhana, hanarau, rorohiko me te ao pāpaoho hoki.

te waimana kaaku

TRIB AL AU THO RIT Y

The past year has been exciting, challenging and busy for Te Waimana Kaaku. We were fortunate to have experienced a number of major historical events for Nai Tūhoe this past year. We acknowledge the significant achievements made by Nai Tūhoe namely the passing into legislation of the Te Urewera Act and the Tūhoe Settlement Act and the Crown Apology to our people.

We remember and give acknowledgement to the efforts of those people, many of whom are no longer with us, who have contributed to the success of this moment in our history.

Over a period of two years previously, our Hapū met, discussed, debated and deliberated on their development priorities. The spatial planning work developed in the context of Hapū objectives and priorities around improving quality of life for our whānau has resulted in our first ever Tribal Development Plan, implemented in

April 2015. Following renovations, our whārua celebrated the re-opening of the tīpuna whare Rāhiri-o-te-Rangi; reopening of the wharekai at Tauanui Pā; Ono-ono-mai-waho and the re-opening of Takutai-o-teRangi, the tīpuna whare at Tātaiāhape.

Ka rawe!

Kaimahi The success of our Tribal Development Plan meant we needed highly experienced kaimahi who could ‘hit the ground running’, and I can say we have achieved that.

Our kaimahi all whakapapa to Nai Tūhoe and Hapū in Te Waimana. They are all skilled and experienced to undertake the roles they have been allocated; Jocelyn Boynton – Office Administrator; Aryana Grootjans – Medical Centre / Hauora; Wikitoria Rakuraku – Website; Rīpeka Te Pou – Education; Ritchie Conroy – Infrastructure; Eileen Brown – Census. All I can say is - watch this space!

he korona whakataena

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tūhoe manawarū

TRI BA L AU TH O RIT Y

The Tūhoe Manawarū Tribal Authority have reached several milestones that include it’s governance agreeing to the Charitable Company Model under the Tūhoe Charitable Trust; the Tribal agree to the Mātaatua Marae rebuild and Te Tii redevelopment projects; MaraeHapū agree that initial focus areas for Ruatāhuna are Infrastructure, Hauora and Tourism; Hapū also support the introduction of the Parakore initiative for Manawarū.

These and supporting the Tūhoe Crown Settlement, the Crown Tūhoe Apology affirm a Manawarū desire to moving forward.

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TŪHOE Te Uru Taumatua | 2014- 2015

Manawarū plans for the recruitment of its Operational Team to implement the objectives of its Development Plan. Tūhoe reo, tikanga, relevant experience and Tūhoe whakapapa were the main attributes sought for the Operations Team.

Tūhoe Manawarū Tribal has established four positions and appointed the following team; Iharaira Tēmara (Nāti Kuri/ Tamakaimoana) as the General Manager, Honey Tuhua (Nāti Kuri/Tamakaimoana) is now the permanent Office Administrator, Atamira Tumarae-Nuku (Tamakaimoana) has been appointed in the part-time role of Project Coordinator for Tourism and Mahue Tawa (Te Urewera, Nāti Kuri, Tamakaimoana) has been confirmed in the parttime role of Project Coordinator Te Tii Town Development.

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waikaremoana

T RI BA L AU THO RIT Y

Waikaremoana Tribal Authority commenced operations on 1 April 2015 after the Waikaremoana governance model had been discussed, considered, agreed and directors appointed. Spatial planning priorities had been developed, including hauora, mandating, biodiversity, build and establishment objectives. Prior to the launch date of 01 April , the operations, assets and mahi of the Lake Waikaremoana Hapū Restoration Trust had needed to be transferred to the new tribal authority and the trust closed down. This was successfully accomplished, as was the recruitment of staff.

The new tribal team comprises Barry Bouton is the General Manager, Tina Wagner (Te Whānau Pani, Nāti Ruapani) is Service Management Project Advisor, Oriwia Taylor (Te Whānau Pani, Nāti Ruapani) is the Administrator and Herehere Titoko (Te Urewera) the Administrative Associate. Barry has previous indigenous peoples experience gained with the Zulu nation in South Africa, Nāi Tahu and Raukawa iwi in New Zealand and the Goolabaroo Jabirr Jabirr tribe in North Western Australia.

Tina has a background working on and managing the Kiwi and Tuna projects for the previous trust. Oriwia is a recent graduate who has returned home to take up her role. Herehere has previously worked for Archives New Zealand, and communications and administration for Te Uru Taumatua.

he korona whakataena

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te urewera Tūhoe, your Te Urewera Board is pleased to report a high degree of collaboration is enjoyed amongst the new Board, and that you have a functional and inspired Board team who is excited by its role and clear on its responsibilities. We have initiated our first round of hui with Tribal’s, finding all Taraipara to be a rich resource of leadership and ideas for future action.

We have settled roles with the direct Ministers, Ministers Finlayson and Barry and established effective and cooperative relationships with the Te Uru Taumatua Chief Executive and the Department of Conservation Director General.

Since coming to life 22 September 2014, our first duty is to know what is the reo o Te Urewera, what is the personality of Te Urewera, what are the tastes, the likes and dislikes of Te Urewera and in that conversation come to understand the role of Te Urewera Board.

Meanwhile, we evolve with our operational team a Te Urewera approach to the restoration of Te Urewera, to that end some grand steps have been taken to unify our transitional arrangements with Department of Conservation.

We have spent the year building a new Te Urewera framework to explain the desired restoration programme - and build traditional management planning processes through Te Kawa o Te Urewera. Te Kawa will express the relationships Te Urewera would like to see with and between its’ tanata whenua and manuhiri to bring about a replenishing Te Urewera.

Nā Te Poari o Te Urewera

TE UREWERA he korona whakataena

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financial statements FOR THE YEAR ENDED 31 MARCH 2015

trust directory

as at 31 March 2015

OBJECTIVE OF BUSINESS 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.

TRUSTEES TRIBAL Tamati Kruger.....................................Rūātoki Patrick McGarvey.............................Rūātoki Martin Rakuraku...............................Waimana Ryan Te Wara......................................Waimana Iharaira Tēmara.................................Ruatāhuna Celia Soloman...................................Ruatāhuna Lance Winitana.................................Waikaremoana

ADDRESS 12 Tūhoe Street, Tāneatua AUDITORS BDO Wellington 50 Customhouse Quay Wellington 6011

BANKERS ASB Bank SOLICITORS David Mc Lay Daveys Burton

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Notes to the Financial Report | 2014 - 2015

CON T ENT S Statement of Financial Performance

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

24

Statement of Changes in Equity

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

25

Statement of Financial Position

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26

Statement of Cash Flows

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27

Notes to the Financial Statments

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T的HOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

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INDEPENDENT AUDITOR’S REPORT To the Members of Tuhoe Te Uru Taumatua Report on the Financial Statements We have audited the accompanying financial statements of Tuhoe Te Uru Taumatua and its subsidiaries (together referred to as “the Group”), which comprise the consolidated statement of financial position as at 31 March 2015, and the consolidated statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

This report is made solely to the Members as a body, in accordance with the Constitution of Tuhoe Te Uru Taumatua. Our audit has been undertaken so that we might state to the Members 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 Members, 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 of financial statements that give a true and fair view of the matters to which they relate and in accordance with generally accepted accounting practice in New Zealand and for such internal control as the Board of Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view of the matters to which they relate in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by 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 and financial reporting assistance. We have no other relationship with or interests in the Tuhoe Te Uru Taumatua or any of its subsidiaries.

24

Notes to the Financial Report | 2014 - 2015

Basis for Qualified Opinion Insufficient evidence in regard to the acquisition of the subsidiary, Tuhoe Fish Quota Limited Tuhoe Charitable Trust that is consolidated into Tuhoe Te Uru Taumatua Group has acquired a subsidiary Tuhoe Fish Quota Limited as at 1 August 2014 through the Tuhoe-Crown Treaty Settlement. The subsidiary is consolidated in the Group financial statements of Tuhoe Te Uru Taumatua from this date.

We were unable to obtain sufficient appropriate audit evidence for the opening balances for Tuhoe Fish Quota Limited as at 1 August 2014 and the results of its operations for the four months to 31 July 2014.

The 1 August 2014 statement of financial position of Tuhoe Fish Quota Limited contributes $20.906 million of the $25.553 million recorded as Tuhoe Crown Treaty Settlement in the statement of financial performance. As a result of us not being able to get sufficient evidence over this matter, we were unable to determine whether adjustments need to be made to the results of operations for the remaining 8 months of the year for Tuhoe Fish Quota Limited and the Tuhoe Crown Treaty Settlement income in the statement of financial performance for Tuhoe Te Uru Taumatua for the year ending 31 March 2015.

Insufficient evidence in regard to the subsidiary, Tuhoe Fish Quota Limited The 31 March 2015 consolidated financial statements of Tuhoe Te Uru Taumatua Group record the investment in subsidiary, Tuhoe Fish Quota Limited for a total value of $21.558 million in the consolidated statement of financial position.

We were unable to obtain sufficient appropriate evidence about the carrying amount of the investment in the subsidiary in the Group consolidated financial statements as at 31 March 2015. Consequently, we were unable to determine whether any adjustments to these amounts were necessary.

Qualified Opinion In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraphs, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of Tuhoe Te Uru Taumatua and its subsidiaries as at 31 March 2015, and its consolidated financial performance and its cash flows for the year then ended in accordance with New Zealand Financial Reporting Standards and Statements of Standard Accounting Practice.

BDO WELLINGTON 17 October 2015 Wellington New Zealand

T的HOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

25

statement of financial performance for the year ended 31 March 2015

GROUP Note Revenue Operational Income Other Income Total Revenue Expenses (by Function of Expenses) Direct Costs Governance Costs Management and Direct Wages Cost of Sales Group Project Costs Total Direct Costs

7.1 7.2

6

19

Total Expenses Net Operating Surplus/(Deficit) Share of Profit & Loss of Associates: Share of equity accounted profit and loss Operating Surplus(Deficit) before income tax Income Tax Expense Operating Surplus(Deficit) after income tax Non-Operating and Other Income/(Expenses) T큰hoe-Crown Treaty Settlement Other gains / (losses) Impairment - 22 T큰hoe Street Net Surplus/(Deficit)

The accompanying notes form part of these financial statements

26

Notes to the Financial Report | 2014 - 2015

2014

2015

2014

$ 000's

$ 000's

$ 000's

$ 000's

825 8,121 8,946

56 8,037 8,093

2,545 7,121 9,666

2,749 7,981 10,730

401 1,197 128 1,368 3,094

74 878 3 206 1,161

382 986 45 1,213 2,626

74 878 3 156 1,111

58 135 20 36 48 20 71 12 401

23 80 15 21 10 54 50 3 256

54 121 20 30 46 20 69 9 370

23 78 15 20 10 54 50 3 253

185 688 73 124 73 812 110 209 271 675 3,220

92 423 7 230 48 532 121 378 138 1,969

185 588 71 105 31 812 8,000 254 665 10,713

92 411 7 230 48 532 1,400 377 138 3,235

6,714 2,231

3,386 4,707

13,708 (4,042)

4,599 6,131

5,333 7,564 (192) 7,756

3,464 8,171 773 7,398

(4,042) (168) (3,875)

6,131 800 5,331

25,553 12,034 (128) 45,215

108,203 3,102 118,704

12,034 (128) 8,031

108,203 3,102 116,636

5

Indirect Costs Telecommunication Resources & Maintenance Vehicle Expenses Travelling Costs Utilities Expenses Hui & Engagement Costs Communication Unit Costs Other Indirect Costs Total Indirect Costs Administration & Other Costs GST Apportionment Charge Personnel Expenses Insurance Professional Fees Audit & Tax Expenses Management Fees - Financial Portfolio Donations Tribal Capacity Other Costs Depreciation Total Administration & Other Costs

PARENT

2015

8 9

7.3 7.3

statement of changes in equity for the year ended 31 March 2015

GROUP Note

PARENT

2015

2014

2015

2014

$ 000's

$ 000's

$ 000's

$ 000's

Retained Surpluses Opening Balance

27,655

14,993

22,358

11,762

Net Surplus/(Deficit) for the year Total Recognised Revenues and Expenses for the period

45,215 45,215

118,704 118,704

8,031 8,031

116,636 116,636

Less: Proportion of Crown Settlement transferred to Revaluation Reserve

12

(756)

-

-

-

Transfer to Fixed Capital Financial Redress Lake Waikaremoana Value at Consolidation Te Ohu Kai Moana Trust Settlement

7.3 4 13

Closing Retained Surpluses

(15,439) (15,439) 56,676

(106,040) (106,040) 27,654

30,389

(106,040) (106,040) 22,358

Fixed Capital of Trust Transfers to Fixed Capital Closing Fixed Capital

224,026 15,439 239,465

117,986 106,040 224,026

224,026 224,026

117,986 106,040 224,026

Revaluation Reserve: Transfer from Tretained Surpluses Eliminated on sale of investment property Closing Revaluation Reserve Equity at Balance Sheet Date

756 (505) 251 296,391

251,681

254,415

246,38

12

The accompanying notes form part of these financial statements T的HOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

27

statement of financial position as at 31 March 2015

GROUP Note

2015 $ 000's 296,391

Trust Equity

PARENT 2014 $ 000's 251,682

2015

2014

$ 000's 254,415

$ 000's 246,384

Represented by: Assets Current Assets Cash and Cash Equivalents Term Deposits Receivables Inventories Other Current Assets Non-Current Assets Property, Plant & Equipment Intangibles Investment Property Other Intengibles Investments (Financial Portfolio) Investments (Shares) Interest in CNI Iwi Holdings Trust - at cost Equity Accounted share in Associated Entity

15 16

18

19 19 20 14 17 13 8 8

Total Assets Less: Liabilities Current Liabilities Creditors and Accruals Income Tax Payable

20 9

Total Liabilities Net Assets

Trustee

16 October 2015

The accompanying notes form part of these financial statements

28

Notes to the Financial Report | 2014 - 2015

Trustee

18,134 12,605 264 7 96 31,105

4,182 63,463 1 19 2,091 69,756

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

1,271 63,463 24 19 2,083 66,861

16,900 170 340 9,862 169,606 10,054 58,662 265,593

17,157 155 -

16,838 170 -

17,154 155 -

111,186

169,606

111,186

55,792 184,290

53,425 240,038

53,425 181,919

296,698

254,046

254,311

248,780

1,144 (838) 307

1,885 478 2,364

669 (773) (104)

1,878 518 2,396

307

2,364

(104)

2,396

296,391

251,682

254,415

246,384

16 October 2015

statement of cash flows for the year ended 31 March 2015

GROUP Note

PARENT

2015

2014

2015

2014

$ 000's

$ 000's

$ 000's

$ 000's

Cash flows from Operating Activities Payments to Staff and Suppliers Interest received Donations Paid Income Tax Paid / (refunded) GST paid/(recovered) Net cash (used)/generated from operating activities

(5349) 8,692 (110) (1,123) 566 2659

1,725 5,539 (121) (344) (326) 6,473

(6,183) 8,477 (8,000) (1,123) 576 (6,252)

1,762 5,483 (1,400) (344) (318) 5,183

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

2,463 4589 275 3,967 11,294

2,693 106,040 (13,868) (8,077) (7,843)

2,463 (364) 7,949 10,176

2,693 106,040 (13,866) (102,709) (7,842)

-

-

-

-

13,953 4,182 18,135

(1,371) 5,553 4,182

3,923 1,271 5,194

(2,659) 3,930 1,271

45,215

118,703

8,031

116,636

12,034 25,553 5,333 2,296

3,102 106,040 3,464 6,097

12,034 2,463 (6,466)

3,102 106,040 2,693 4,801

675 2,971

138 6,235

665 (5,801)

138 4,939

1,764 (761) (1,316) 2,659

(1,541) 1,350 429 6,473

2,058 (1,219) (1,291) (6,252)

(1,555) 1,343 456 5,183

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 Reconciliation of Surplus/(Deficit) with Operating Cash flows Surplus for the Period Less items in surplus but not part of operating cash flows: Revaluation Gains/Losses Crown Settlement - Financial Redress Share of Profit & Loss of Associates/ Distributions Received Less items not involving the flow of funds: Depreciation & Amortisation Change in working capital balances: GST Refund Due Creditors & Accruals Income Tax payable

T的HOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

29

notes to the financial statements for the year ended 31 March 2015 1 Reporting Entity

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

In June 2013 Ngai Tūhoe whanui 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'.

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.

Maori Trust Board and Tūhoe Fisheries Charitable Trust and 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 financial statements have been prepared in accordance with the provisions of Section 13 & 14 of the TUT Trust Deed and Generally Accepted Accounting Practice in New Zealand (“NZ GAAP”). The Trust is a reporting entity.

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.

(b) Basis of measurement The financial statements have been prepared on the historical cost basis except for the following:

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 DOS records that the redress settlement by the Crown is free of GST, Income Tax or Gift Duties.

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 of 23.68125% 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, the Iwi Collective groups may purchase the remainder of the Crown proportion and accumulated income and interest at a price determined in terms of the DOS. The price paid is settled by the Crown on an entity to manage Collective Iwi forestry and other commercial interests.

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:

• redress in relation to Mana Motuhake • financial and commercial redress.

30

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 Notes to the Financial Report | 2014 - 2015

The investment portfolio is measured at fair value.

The methods used to measure fair values are disclosed further in note 4.

(c) Functional and presentation currency These financial statements are presented in New Zealand dollars ($), which is the Trust’s functional currency. All financial information presented in New Zealand dollars has been rounded to the nearest thousand dollars ($000's). (d) The recently promulgated Financial Reporting Act 2013 and Financial reporting (Amendments to Other Enactments) Act 2013 will have an impact on future reporting by TUT. The new Acts separate "Not for Profit" and "For Profit" reporting and, in addition, introduce a system of tiers depending largely on the size of an entity. The Trustees have determined that TUT is a Not for Profit entity reporting und Tier 2. The new framework is effective from 1 April 2015.

4 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements, unless otherwise stated. (a) Basis of Consolidation (i) Subsidiaries The consolidated financial statements include the parent and its subsidiaries accounted for using the purchase method.

All significant inter-entity transactions are eliminated on consolidation. In the Trust’s financial statements, investments in subsidiaries are recognised at their cost.

(ii) Associates Associates are entities over which the TUT has significant influence but not control, generally accompanying a beneficial interest or shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted using the equity method of accounting and are initially recognised at cost. TUT’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment loss.

In the parent entity financial statements the investment in associates is carried at cost less impairment adjustments and distributions received are disclosed in the Statement of Financial Performance as income.

TUT’s share of post acquisition profits or losses is recognised in the Group Statement of Financial Performance. The cumulative post acquisition movements are adjusted against the carrying amount of the investment. Should the TUT’s share of losses in the associate equal or exceed its interest in the associate, the TUT does not recognise further losses unless it has incurred obligations or made payments on behalf of the associate.

• agreed historical account, Crown acknowledgments and apology • redress over Te Urewera and other cultural redress

The Trust qualifies for differential reporting concessions as it is not publicly accountable and is not large (as defined). The Trust has taken advantage of all reporting exemptions except for FRS-9 Information to be diclosed in financial statements.

notes to the financial statements continued for the year ended 31 March 2015

(b) Investments Investments in the financial portfolio are managed by external fund managers as is more fully described in Note 17.

Investments are stated at fair value at balance sheet date (See note 17) and unrealised gains or losses arising from changes in unit prices are disclosed as non-operating items in the Statement of Financial Performance.

Cash and Cash Equivalents These comprise cash held in bank accounts and short term deposits not exceeding 90 days that are readily convertible into cash and are subject to insignificant risk of changes in value.

(c) Property, plant and equipment & Computer Software Recognition and measurement Classes of property, plant and equipment includes land and buildings used by TUT and plant and equipment. Intangible assets comprise computer software that is not an integral part of the computer hardware.

Land and buildings are measured at cost less accumulated depreciation and impairment losses.

Other items of property, plant and equipment or computer software are measured at cost less accumulated depreciation or amortisation and impairment losses.

Cost includes expenditures that are directly attributable to the acquisition of the asset.

Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to TUT and its cost can be measured reliably. The cost of the day-to-day servicing of property, plant and equipment are recognised in the surplus or deficit as incurred.

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: i) 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 Tuhoe, 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 Tuhoe and four by the Crown. In terms of the Act, major decisions must be unanimous and others by concensus. Tuhoe 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. ii) Lake Waikaremoana The Lake Waikaremoana Act 1971 vested ownership of Lake Waikaremoana in Tuhoe Waikaremoana Maori Trust Board and Wairoa Waikaremoana Maori Trust Board as tenants in common. In accordance with the terms of the Te Urewera Tuhoe Claims Settlement Bill, from the settlement date all assets and liabilities of the Tuhoe Waikaremoana Maori Trust Board have been vested in the Tuhoe 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.

The discount rate used to determine the value of the Lake is 3.30% (LY 4.36%) which is the market rate for 10 year Government Bond as at 31st March 2015. Based on this method, the Lake valuation for the year would be $8.5m (LY $6.4m).

The Trust notes that there is no market information in New Zealand for perpetuities. Therefore the Value of the Lake bed is subject to the following sensitivity:

A 1% increase in the discount rate will result in a $1.96 m decrease in the Lake bed valuation.

A 1% decrease in the discount rate will result in a $3.67m increase in the Lake bed valuation.

As far as the Trust is concerned the above method is a way of calculating the accounting value of the Lake bed in accordance with applicable accounting standards. It 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 acknowledge the The Waikaremoana Lake as Tūhoe’s Heritage asset whose value cannot be reliably determined.

Depreciation and Amortisation Depreciation and amortisation is recognised in the Statement of Financial Performance over the estimated useful lives of each part of an item of an item of property, plant and equipment or computer software.

The applicable depreciation and amortisation rates are:

Art & Archives: 10% to 100%

Building: 3% to 12%

Motor Vehicle: 36%

Plant & Equipment: 12% to 80.4%

Computer Equipment: 48% to 60%

Fixtures & Fittings: 9.6% to 80.4%

Computer Software: 50% to 60%

(d) Impairment The carrying amounts of TUT’s assets are reviewed at each balance sheet date to determine whether there is objective evidence of impairment.

An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

Impairment losses directly reduce the carrying amount of assets and are recognised in the Statement of Financial Performance unless the asset is subject to revaluation. Where a reserve exists for revalued assets, this is reduced before any charge on the current year's results is affected.

TŪHOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

31

notes to the financial statements continued for the year ended 31 March 2015

(e) Employee benefits Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

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

A provision is recognised for the amount expected to be paid if TUT has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(f) Provisions Other liabilities and provisions are recorded at the best estimate of the expenditure required to settle a present obligation arising as a result of past actions. Provisions expected to be settled more than 12 months after balance date are recorded at their present value.

Income from Associates is recognised on an accrual basis.

Distributions from CNI IHT have been accounted for net of the tax credits.

Rental and other income is recognised on an accrual basis.

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

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.

The income tax expense charged to the statement of financial performance is calculated using the taxes payable method.

(h) Revenue Interest income is recognised as it accrues, using the effective interest rate method.

Income from the Financial Portfolio is recognised as it is advised to the Trust by the Portfolio Managers.

(j) 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.

(g) Operating Lease payments Payments made under operating leases are recognised in the Statement of Financial Performance on a straight-line basis over the term of the lease.

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

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 Financial Performance.

(k) 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.

(l) Subsidiaries and Associates Registered Charity

Operating Division

Ownership

Voting interest

Balance Date

Subsidiaries: Tūhoe Charitable Trust

CC45656

Distribution

TUT

100.00%

31 March

Tūhoe Fish Quota Limited

CC11440

Asset Holding

TCT

100.00%

31 March

Ruatoki Tribal Authority Charitable Company Ltd

CC52142

Community Development

TCT

100.00%

31 March

Waikaremoana Tribal Authority Charitable Company Ltd

CC52146

Community Development

TCT

100.00%

31 March

Te Waimana Kaaku Tribal Authority Charitable Company Ltd

CC52143

Community Development

TCT

100.00%

31 March

Tūhoe Manawaru Tribal Authority Charitable Company Ltd

CC52145

Community Development

TCT

100.00%

31 March

23.68%

12.50%

31 March

Associates: CNI Iwi Holdings Trust

No

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.

Tuhoe 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, Tuhoe Charitable Trust who were vested all assets and liabilities of Tuhoe Fisheries Charitable Trust as per the Tuhoe Settlement Claim Act 2014.

32

Notes to the Financial Report | 2014 - 2015

Investment

The four Tribal Companies were incorporated during Nov-March 2015 period. Tuhoe Charitable Trust as a Parent completed a Single Entity registration with Charities Services under the name of Tuhoe 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 before 20th September 2016. In addition, transactions undertaken by the Tribal Companies to 31 March 2015 are not sufficiently material to warrant line by line consolidation in the Group financial statements.

notes to the financial statements continued for the year ended 31 March 2015

GROUP Note 5

PARENT

2015

2014

2015

2014

$ 000's

$ 000's

$ 000's

$ 000's

1,197

878

986

878

622

381

543

369

49

37

20

37

9

6

9

6

24

5

3

Expenses include

Employee Benefit expense (Salary & Wages) Direct Costs Administration Costs Fees paid to Auditors: For Audit services For Taxation services For financial reporting services Group Project Direct Costs

206

5 156

Anamata

707

-

667

-

Onukurani

103

-

103

-

Iwi

487

-

372

-

70

-

70

-

43

1

27

1

168

-

150

-

-

-

-

-

-

-

Whairawa Legal expenses (Professional Fees) Grants Paid (Other Costs) Tribal Capacity (Other Costs) Ruatoki Tribal Authority Charitable Company Ltd Waikaremoana Tribal Authority Charitable Company Ltd

89 101

Te Waimana Kaaku Tribal Authority Charitable Company Ltd

12 8

Tūhoe Manawaru Tribal Authority Charitable Company Ltd

209

6 Donations In March 2014 Tūhoe Te Uru Taumatua made donations of $8000 (LY $1400) in income to the Tūhoe Charitable Trust. The Tūhoe Charitable Trust as at 31 March has applied $100 (LY $100) for marae funding purposes and $0 (LY $20) to Community Groups and other Koha.

GROUP Note 7

PARENT

2015

2014

2015

2014

$ 000's

$ 000's

$ 000's

$ 000's

Income

7.1 Income from Operations ACE Trading Receipts from business Forestry rentals Service provision Lease & Rental income

505

-

-

-

77

56

52

56

-

-

2,463

2,693

30 213

-

30 -

-

825

56

2,545

2,749

7.2 Other Income Grant Received

117

977

117

977

Interest Income

1,763

2,521

1,529

2,466

5,464

4,538

5,464

4,538

249

-

-

-

23

-

11

-

Investment Income Dividend Earned Koha Received Sundry Income - Sale of Auckland Property

17

505

-

0

-

8,121

8,037

7,121

7,981

(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 $652 have been claimed for refund from the IRD and taken up as an accounts receivable.

TŪHOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

33

notes to the financial statements continued for the year ended 31 March 2015

7.3 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:

The Tuhoe Claims Settlement Bill was passed in the House, at Parliament on 24th July 2014. The Act has disestablished

- Tuhoe Waikaremoana Maori Trust Board

- Tuhoe 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 asthe 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 settlement amount in advance during September 2013.

• 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.

GROUP Note Financial Redress

10

Interest

PARENT

2015

2014

2015

2014

$ 000's

$ 000's

$ 000's

$ 000's

-

106,040

-

-

5,423

-

5,423

106,040

Settlement Achievement Payments

21

-

(3,260)

-

(-3,260)

Tuhoe Waikaremoana Maori Trust Board

11

4,629

-

-

-

Tuhoe Fisheries Charitable Trust

11

Tuhoe Fish Quota Limited

11

18 20,906

-

-

-

25,553

108,203

-

108,203

The following adjustments were made in determining the value of the Crown Settlement: i) As explained in note 4 (c), the Lake Waikaremoana asset, previously included at fair value in the financial statements of Tuhoe 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 Tuhoe Waikaremoana Maori Trust has been eliminated.

Note (b) Fair value gains/(losses) on Managed Portfolio - unrealised AMP Capital Started May 13 NZ First

Started

May 14 17

34

Notes to the Financial Report | 2014 - 2015

ii) Financial Statements of Tuhoe Fish Quota Limited are not available at the date of acquisition (1 August 2014). For this reason an adjustment has been made for pre-acquisition net surplus for the 4 months to 31 July 2014 on the assumption that income is earned and costs incurred smoothly through the year. Cash and deposits at 31 March 2015 were therefore reduced by $652, being the estimated net surplus earned after acquisition.

GROUP 2015 $ 000's

2014 $ 000's

PARENT 2015 $ 000's

2014 $ 000's

8,141 3,892

3,102 -

8,141 3,892

3,102 -

12,034

3,102

12,034

3,102

notes to the financial statements continued for the year ended 31 March 2015

8 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 23.68125%)

GROUP

CNI Iwi Holdings Trust: Investment at cost

2015

2014

$ 000's

$ 000's

Prior year equity accounted adjustments (net)

53,425 2,367

53,425 1,596

Less: Distribution received (Net of Maori Tax Credits)

55,792 2,463

55,021 2,693

Add: Portion of distribution received where equity currently resides with the Crown

-

-

Add: Reversal of last year adjustment for overstatement NZU value

-

109

Adjustment for timing difference on settlement of Crown agreed portion and NZU’s - see below

8,779 (3,446)

3,355 -

Equity Accounted Share in CNI Iwi Holdings Trust

58,662

55,792

41,089 225,673

25,996 225,698

266,761 4,491 14,550

251,694 16,095 -

Add: Share of surplus after tax

Summarised Financial Information from CNI Iwi Holdings Trust as at 31 March 2013 (2012: 31 March) Current Assets Non Current Assets Total Assets Current Liabilities Adjustment for timing difference on settlement of Crown agreed portion and NZU’s - see below Total Liabilities Net Assets TUT's share of net assets of CNI Iwi Holdings Trust

19,041

16,095

247,720 58,662

235,599 55,792

Year to 31/3/15

Associate's Results:

Year to 31/3/14

Revenue Crown Agreed Proportion Transferred to Iwi - see below

15,827 12,612

15,457

Fair Value adjustment of Carbon Credit NZU's

10,755

2,766

NZU’s received in Settlement - see below

1,938

Net surplus after tax

37,071

14,166

In the financial statements of CNI IHT, NZ Carbon Credit units (NZU's) are valued at balance date at $6.50 per unit.

Crown agreed portion and NZU's: The audited financial statements of CNI Iwi Holdings Trust have not yet been finalised. The draft financial statements are prepared on the basis that 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 and all matters are not yet finally resolved. The Trustees of TUT have therefore determined to reverse these transactions and account for them in the 2016 financial statements once they are resolved.

Te Urewera Board As detailed in note 4 (c), part of the settlement between Tuhoe and the Crown resulted in Tuhoe gaining joint control of Te Urewera National Park. The Te Urewera Act 2014 provides for the management of Te Urewera by the Te Urewera Board. The Board is constituted so that Tuhoe representatives have a significant influence in the Board. FRS 38 “Accounting for Investments in Associates” provides that where an entity has significant influence over another entity, it should be equity accounted in the financial statements. However, the management accounts of Te Urewera Board at 31 March 2015 show that it is not financially material to Tuhoe Te Uru Taumatua. For this reason, Te Urewera Board has not been equity accounted in these financial statements.

The Te Urewera Act 2014 provides that the financial statements of the Te Urewera Board are to be audited by the Auditor General and presented to Parliament annually.

TŪHOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

35

notes to the financial statements continued for the year ended 31 March 2015 9 Income Tax Expense

GROUP

PARENT

2015

2014

2015

2014

$ 000's

$ 000's

$ 000's

$ 000's

Recognised in the Income Statement Surplus before Tax Add: Maori Tax Credits on CNI Distribution

7,564 -

8,171 -

(4,042) 522

6,130 571

Taxable Income

7,564

8,171

(3,520)

6,702

Prima Facie Taxation at 17.5%

1,324

1,430

(616)

1,173

790

189

790

189

-

-

Expenditure not deductible for tax purposes Non taxable Income FIF - non claimable Tax portion Under/(over) provision - prior year

(2,333) 180

(832) -

180

-

-

9 -

(153)

9 (23)

Less: Maori Tax Credits

(192) -

773 -

355 (522)

1,371 (571)

Tax Expense

(192)

773

(168)

800

478

49

518

62

(192)

773

(168)

800

Non deductible surplus from Charitable Entities Tax on Taxable Income

Income Tax Payable Opening Balance Current income tax expense RWT on interest deducted at source PIE and Income tax paid to IRD Balance at 31 March

Non taxable income includes: Share of equity accounted profits not received as distributions and CNI Manawhenua Settlement Income.

T큰hoe 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.

36

Notes to the Financial Report | 2014 - 2015

(1,123) (838)

(1) (343) 478

(1,123) (773)

(1) (343) 518

Taxes payable at balance sheet date includes PIE tax withheld by the managers of the investment portfolio. These taxes ($537: 2015 and $522: 2014) are paid to the IRD in April.

notes to the financial statements continued for the year ended 31 March 2015 10 Equity

Equity is as detailed in the Statement of Changes in Equity:

Group 2015

Note

Balance at 1 April 2014 Total Recognised Revenue Transfer to Revalution Reserve

12

Reserve eliminated on sale of property

12

Transfer to Fixed Capital

11

Balance at 31 March 2015

Total Equity

Retained Earnings

Fixed Capital

Revaluation Reserve

251,681

27,655

224,026

45,215

45,215 (756)

-

(505) -

(15,439)

15,439

(505) -

296,390

56,675

239,465

251

132,979

14,993

117,986

-

118,703 -

118,704 (106,040)

106,040

-

251,681

27,655

224,026

-

246,384

22,358

224,026

8,031 -

8,031 -

-

-

254,287

30,389

224,026

-

129,747

11,762

117,986

-

116,636 -

116,636 (106,040)

106,040

-

246,384

22,358

224,026

756

Group 2014 Balance at 1 April 2013 Net Profit & Loss Transfer to Fixed Capital

7.3(a)

Balance at 31 March 2014 Parent 2015 Balance at 1 April 2014 Additional Capital Impairment - 22 Tūhoe Street Net Profit & Loss Transfer to Fixed Capital Balance at 31 March 2015 Parent 2014 Balance at 1 April 2013 Net Profit & Loss Transfer to Fixed Capital

7.3(a)

Balance at 31 March 2014

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

$ 000's

Beneficial interest in Forest Land settled

2010

53,425

Accumulated Rents distributed in terms of DOS

2010

67,253

Less: Portion of Accumulated rents derived after 1 July 2009

2010

Tūhoe Financial Redress (Comprehensive Settlement)

2014

(2,692) 106,040

Parent Te Ohu Kai Moana Trust Settlement

11

224,026 2015

Group

15,439 15,439 239,465

TŪHOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

37

notes to the financial statements continued for the year ended 31 March 2015 11 Consolidation Assets

Cash and Deposits

Fixed Assets

TOKM Assets

Land

Fish Quota

Others

Total

3,583 899

1,068 -

15,439

8 -

4,479

(23) 18 89

4,629 18 20,906

4,482

1,060

15,439

8

4,479

85

25,553

Tuhoe Waikaremoana Maori Trust Tuhoe Fisheries Charitable Trust Tuhoe Fish Quota Limited

Within the Consolidation assets, there are assets received through some settlements in the past. These are Te Ohu Kai Moana Trust Settlement and Lake Waikaremoana settlement. These assets are transferred to Fixed Capital of the Trust in the Statement of Movement in Equity.

The following adjustments were made in determining the value of the Crown Settlement:

ii) Financial Statements of Tuhoe Fish Quota Limited are not available at the date of acquisition (1 August 2014). For this reason an adjustment has been made for pre-acquisition net surplus for the 4 months to 31 July 2014 on the assumption that income is earned and costs incurred smoothly through the year. Cash and deposits at 31 March 2015 were therefore reduced by $652, being the estimated net surplus earned after acquisition.

i) As explained in note 4 (c), the Lake Waikaremoana asset, previously included at fair value in the financial statements of Tuhoe 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 Tuhoe Waikaremoana Maori Trust has been eliminated.

12 Asset Revaluation Reserve 2015

Papatoetoe Property (Sold) Papakura Property

Settlement & Receipt

Movement

Group

Parent

Group

Parent

Group

Parent

NZ$

NZ$

NZ$

NZ$

NZ$

NZ$

251

-

505 251

-

(505) -

-

251

-

756

-

(505)

-

During the period, Papatoetoe Property was sold and the reserve was transferred climinated in the Statement of Movement in Equity.

13 Te Ohu Kai Moana Trust Settlement

Group 2015 $ 000's

2014 $ 000's

Parent 2015 $ 000's

2014 $ 000's

2 5,383 10,054

-

-

-

15,439

-

-

-

Group 2015 $ 000's

2014 $ 000's

Parent 2015 $ 000's

2014 $ 000's

5,383 556

-

-

-

CRA Quota Shares

1,527

-

-

-

Paua Quota Shares

2,397 -

-

-

-

9,862

-

-

-

Cash Fishing Quota Shares AFT Income Share (8754 Shares)

AFL Income shares are based on the valuation completed by Taylor Duignan Barry Limited.

14 Other Intangible Assets

TOKM Settlement Fishing Quota Shares AFL/TOKM ex Anton's Quota Shares

NZU's (2009)

During September 2010, Tuhoe 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 nominal ($NIL) Value.

38

Notes to the Financial Report | 2014 - 2015

13

Tuhoe Fish Quota Limited has entered into "Put and Call Options" for $375 of it's Paua Quota Shares and all of it's CRA Quota Shares, in which each party may give written notice to the other during each election period to sell or repurchase the Quota Shares and Quota ACE at fair market value.

notes to the financial statements continued for the year ended 31 March 2015 15 Cash and Cash Equivalents

2015

2014

2015 Interest Rates

$ 000's

$ 000's

2.75% 3.20%

165 4,769 261 5,195

217 1,054 1,271

2.75% 3.20% 3.71% 0.00% 2.80% 0.00%

4,212 7,289 1,213 0 81 145 12,940 18,134

3 2,908 2,911 4,182

2015

2014

2015 Interest Rates

$ 000's

$ 000's

4.63%

9,000 9,000

63,463 63,463

4.7-4.78%

2,200 1,405 4,605 12,695

63,463

PARENT ASB Current Account - TUT ASB Fast Saver - TUT ASB - TUB Tūhoe Charitable Trust ASB Current Account - TCT ASB Fast Saver - TCT BNZ 30 Day Term Deposit - TCT BNZ Current Account - TCT BNZ Fast Saver - TCT Westpac Current Account - TCT GROUP

16 Term Deposits

PARENT ASB Term Deposit - TUT Tūhoe Charitable Trust BNZ Term Deposit - TCT Westpac Term Deposit - TFQL GROUP

17 Investments (Financial Portfolio) Parent & Group

Opening portfolio balance Add : New Investment Less: Funds Withdrawn Income received from share of PIE - realised Gains/(losses) from changes in unit price - unrealised Management Fees paid Tax Deducted

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 indexs.

7.3

2015 AMP

FNZ

$ 000's

$ 000's

$ 000's

TOTAL 2014 TOTAL $ 000's

85,181 19,000

26,004 24,000

111,186 43,000

68,838 36,004

-

-

-

-

4,617

847

5,464

4,538

8,141

3,892

12,034

3,102

(868) (870)

(86) (253)

(954) (1,123)

(639) (657)

115,202

54,404

169,606

111,186

All Managed funds are represented by units in a range of AMP Retail & Wholesale Unit Trusts (AMP) and First New Zealand Capital Funds (FNZ) invested in terms of the SIPO and including investments in Global shares, Australasian shares & Emerging Markets shares as well as hedged shares; NZ Cash, Domestic Bonds, Global Bonds and Fixed Interest funds. 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.

Accrued PIE tax of $537 (LY$556) is included in the gross investment figure and has been accounted for in Income Tax expense. Units are issued and redeemed based on the final tax liabilities of each Unit Trust for 31 March.

TŪHOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

39

notes to the financial statements continued for the year ended 31 March 2015 18 Other Current Assets

2015

2014

Group

Parent

Group

Parent

$ 000's

$ 000's

$ 000's

$ 000's

Tax Account Receivables Pre-Paid expenses Accrued Income

4 19 72

(14) 10 37

570 1,521

562 1,521

96

33

2,091

2,083

The Trust has agreed an appointment model with IRD in respect of expenses and GST purposes.

19 Property, Plant and Equipment and Intangibles

a.i) Property, Plant & Equipment (Group) Motor Plant & Computer Vehicles Equipment Equipment

Art & Archive

Land

At Cost: Opening balance

296

3,096 12,149

100 306

167 -

67 425

72 211

595

3,798 13,685

Balance at 1 April 2014

296

15,245

406

167

492

283

595

17,483

Additions during the period Disposal during the period

242 -

539 (549)

22 (39)

17 -

109 (24)

39 (25)

8 -

975 (637)

Balance at 31 March 2015

538

15,235

389

184

577

296

602

17,820

Depreciation charge for the period

-

67 14

45 13

20 44

30 15

55 15

7

217 108

Balance at 1 April 2014

-

81

58

64

45

70

7

325

Depreciation charge for the period

-

307 -

53 (16)

33 -

93 (13)

74 (23)

87 -

647 (52)

538

14,847

293

87

453

175

508

16,900

Additions during the period

Buildings

Fixtures & Fittings

$ 000's

Total

Accumulated Depreciation: Opening balance

Depreciation recovered on disposal Net book value 31 March 2015 a.ii) Property, Plant & Equipment (Parent)

Land

Buildings

Fixtures & Fittings

Additions during the period

296 0

3,096 12,149

100 306

167 0

64 425

Balance at 1 April 2014

296

15,245

406

167

Additions during the period

234

539 (549)

13 (39)

530

15,235

67 14

$ 000's At Cost: Opening balance

Disposal during the period Balance at 31 March 2015

Motor Plant & Computer Vehicles Equipment Equipment

Art & Archive

Total

72 211

0 595

3,795 13,685

489

283

595

17,480

17 0

61 (24)

34 (25)

8 0

906 (637)

380

184

526

292

602

17,748

45 13

20 44

30 15

55 15

0 7

217 108

Accumulated Depreciation: Opening balance Depreciation charge for the period Balance at 1 April 2014

0

Depreciation charge for the period

81

58

64

45

70

7

325

307

53 (16)

33

84 (13)

73 (23)

87

636 (52)

14,847

285

87

410

172

508

16,838

Depreciation recovered on disposal Net book value 31 March 2015

40

Notes to the Financial Report | 2014 - 2015

530

notes to the financial statements continued for the year ended 31 March 2015

b.i) Intangibles - Computer Software (Group)

$ 000's

At Cost: Opening balance Additions during the period

16 182

Balance at 1 April 2014

198 43

Additions during the period Balance at 31 March 2015

241

Accumulated Amortisation: Opening balance Charge for the period

14 29

Balance 1 April 2014

43 29

Charge for the period

170

Net book value 31 March 2015 b.ii) Intangibles - Computer Software (Parent) At Cost: Opening balance Additions during the period

16 182

Balance at 1 April 2014

198 43

Additions during the period Balance at 31 March 2015

241

Accumulated Amortisation: Opening balance Charge for the period

14 29

Balance 1 April 2014

43 29

Charge for the period

170

Net book value 31 March 2015

20 Investment Property 2015 Group $ 000's Acquired on dis-establishment of Tūhoe Waikaremoana Māori Trust Papakura Papatoetoe Less - Papatoetoe property sold

Parent $ 000's

2014 Group $ 000's

Parent $ 000's

340 720

-

-

-

1,060 (720)

-

-

-

340

-

-

-

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

The Papakura property was valued by Seager & Parners of Auckland, Registered Valuers at 31 March 2014.

The Papatoetoe property was revalued at its sale price effective 31 July 2014.

TŪHOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

41

notes to the financial statements continued for the year ended 31 March 2015 21 Creditors and Accruals 2015 Group $ 000's

Parent $ 000's

2014 Group $ 000's

Parent $ 000's

Accounts Payable PAYE, Kiwisaver & Student Loan deductions

248 54

143 40

1,035 38

1,029 37

HR Liabilities

105

99

74

74

-

-

Funds in Custody Te Urewera Board

261

Operations 8

131 14

Te Maara-a-Te-Atua Rental Income received in advance Accrued Expenses

406

261

-

-

140 192

127

738

738

1,144

669

1,885

1,878

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

22 Related Parties 2015

2014

Group $ 000's

Parent $ 000's

Group $ 000's

Parent $ 000's

2,693

CNI Iwi Holdings Ltd, CNI Iwi Holdings Trust and Te Kotahi a Tūhoe are related parties.

Te Kotahi a Tūhoe was a charitable trust whose principal activity is to co-ordinate and facilitate the progression of the Tūhoe Treaty Settlement.

Last year, a Settlement Recognition payment was made to Te Kotahi a Tūhoe Charitable Trust for the successful completion of the Tūhoe Comprehensive Settlement valued at $170 million.

The payment was to compensate the Negotiator, Trustees and General Manager for services and contribution to achieve settlement. Related parties to the transaction include Tūhoe Te Uru Taumatua trustees and management who occupy governance and management positions on both Trusts.

Transactions with related parties: CNI Iwi Holdings Ltd - Distribution of Forestry Land rents

2,463

2,463

2,693

Te Kotahi a Tūhoe - Management fees

-

-

(40)

(40)

Te Kotahi a Tūhoe - Settlement Achievement Payment

-

-

3,260

3,260

150

150

-

-

Governance Payment

311

296

52

52

Representation Fees

29

29

8

8

Contribution to Te Urewera Board Transactions with Key Management Personnel:

No amounts were due and unpaid at balance date

42

Notes to the Financial Report | 2014 - 2015

notes to the financial statements continued for the year ended 31 March 2015

23 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 (see Note 8) in terms of the Central North Island Forests Deed of Settlement and therefore there is a concentration of market risk associated with this investment.

24 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.

25 Operating Leases The Trust has operating leases for office equipment The total value of minimum lease payments is due as follows: Not later than one year Later than one year and not later than five years Later than five years

Group $ 000's

Parent $ 000's

20 58 -

19 57 -

78

76

TŪHOE Te Uru Taumatua | he korona whakataena | 2014 - 2015

43

notes to the financial statements continued for the year ended 31 March 2015

26 Commitments And Contingencies

As Discussed in note 2 above, the Central North Island Settlement Provides for the Crown to retain a 10% beneficial interest for the settlement of any claims arising outside of the CNI DOS during a period ending 30 June 2015. After that period any remaining surplus funds will be dealt with in accordance with the CNIIHL Trust Deed. At balance date the CNIIHL financial statements record approximately $12.3m of surplus funds (Including NZU's).

Trustees are not able to determine yet how much of this estimated surplus might accrue to TUT.

An injunction has been lodged in the Maori Land Court by C Waaka against Trust (previously Tuhoe Waikaremoana Maori Trust Board) in relation to Inland Revenue penalties that Te Manawa o Tuhoe Trust were required to pay to the Inland Revenue Department.

The potential exposure is not expected to be greater than $210.

High Court proceedings have been commenced against the Trust (previously Tuhoe 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 October 2015.

The maximum financial settlement is estimated at $600 and estimated legal cost of $20.

The Board moved a resolution for further investment in Tribal.

There was approval of $12.3m funding to be invested in year 2015 on tribal projects.

44

Notes to the Financial Report | 2014 - 2015

27 Events after Balance Sheet Date

A Single Entity Registration with Charities Services for Tuhoe Charitable Trust Group was approved on 19th of August 2015 under the Group name Tuhoe Tribal Authorities. The four Tribal companies were registered under the Charitable Services on 23rd July 2015, and they have been back dated to their application dates which was before the 31st March 2015. First Annual return with Charities Services for the Group is due before 30th September 2016.

notes

TELEPHONE: 07 312 9659 EMAIL: tari@ngaituhoe.iwi.nz 12 Tﾅｫhoe Street, Tﾄ］eatua, PO Box 56, Tﾄ］eatua 3163

www.ngaituhoe.iwi.nz