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H U-W ANGA

AT I

I NU

HA

IN

CO

RPORATI

ON

Toi tu te whenua

ANNUAL REPORT 2016


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E te mōrehu whenua, nei rā te mōrehu tangata E mihi kau ake ana ki ngā mātua tūpuna, nā rātau koe i pupuri hei taonga tuku iho Kia ahatia? Kia Toi tū te whenua! Koutou e te hunga rūpeke – haere ki Te Turi o Murimotu, ki Paretetaitonga. Hoki wairua mai i te wā iti nei kia tangihia koutou e ā koutou uri e tangi maioha atu nei. Nau mai tātau ki tā tātau hui ā-tau i te 2016 nei. Haere mai ki te whakarongorongo, haere mai ki te kōrero. Haere mai tātau katoa.

H U-W ANGA

AT I

I NU

HA

IN

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RPORATI

ON

Toi tu te whenua

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CONTENTS TOITŪ TE MANA 6 9 10 12

Ātihau Whanganui Incorporation Chairperson's Report Board Members Strategic Overview Agricultural Training Partnership Provides Foundation for Future

TOITŪ TE WHENUA 14 19 20

CEO Report Financial Health Statement Summary of Key Financial Information

TOITŪ TE TANGATA 22 28

Te Āti Hau Trust Chairperson's Report 2015/16 Trust Grant Recipients

ĀTIHAU-WHANGANUI INCORPORATION FINANCIAL STATEMENTS 39 40 41 42 44 45 46 62

Contents Shareholding and CoM Disclosures Statement of Comprehensive Income Statement of Changes in Equity Balance Sheet Statement of Cash Flows Notes to and forming part of the Financial Statements Auditors' Report

TE ĀTI HAU TRUST FINANCIAL STATEMENTS 65 66 68 69 70 71 72 76

Contents Entity Information Statement of Service Performance Statement of Financial Performance Statement of Financial Position Statement of Cash Flows Notes to and forming part of the Performance Report Auditors' Report

APPENDIX 78 80

2015 AGM Summarised Minutes Glossary of Terms

Cover: Kararaina Haami-Cooper (Te Ātihaunui-a-Paparangi), photographed at Te Pā Station, is a student on the Awhiwhenua Agricultural Training Course.


Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT

He hōnore, he korōria ki te Atua Maungārongo ki te whenua Whakaaro pai Ki ngā tāngata katoa Tihei mauriora As a people, we seem to have been extra busy this past year inching closer to settlements, structuring new entities to take us forward, actively participating in the review of government policy and now just behind us local body elections. Please, I hope we all exercised our democratic right and VOTED! Your AWHI board have also been busy, and I am pleased and proud to present this annual report on our behalf. Firstly though, to those whanau who have been and continue to grieve, tōku arohanui. To those who have health challenges, kia kaha. To those who celebrate new life, tihei mauriora. To the rest of us, let us give sincere thanks. We have been listening... Our Annual General Meeting is a great time for whanaungatanga, but also a time for you to express your thoughts and concerns. We are grateful for this interaction and we take it very seriously. Not only do we wish to respectfully listen, but where it makes sense we want to “make it happen”. I am pleased to list here a couple of those repeat issues and our implemented response. Lets keep the kōrero going.

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acknowledge the smart work of our Management and Operational teams for the seamless manner in which this occurs. Please view on page 10 the high level strategic placeholders we have affirmed. Knowing our customers and having them know us has been an important component of our strategy. To that end this past year we have hosted: • The Glerup whanau from Norway, through NZ Merino where increasing kilograms of our crossbred wool goes to make the renowned Glerup footwear. • Twice this year, we hosted Matt Wadiack one of the founders of Blue Apron and Bill Niman of BN Ranch, San Francisco. They are both key drivers of Blue Apron, the USA equivalent of My FoodBag. This USA business supplies in excess of eight million meals across the USA every month; it is only four years old. • Topping Cuisine from China and Paradigm Investments from Taiwan enjoyed our manaakitanga and are keen to consider red meat contracts into Asia. A number of these visits have been reciprocated, strengthening those relationships

Strategic refresh

Part of our strategy has recognised the big issue of safety in the workplace, a matter the board now has legislative responsibility for. We have received instruction and developed policy from board to farm staff to our contractors on what this means for us as individuals and as governors, staff and stakeholders. Lots of work, but if it means our whanau get home safely every night after work, then it is well worthwhile.

We continue to annually review our strategy and then allow this to inform our farm plans and budgets. It is always a thrill when strategy is well executed and the results emerge. On behalf of the board can we

Our other large piece of work has included a review and refresh of our risk policy and matrix. This can often feel like a hōhā, except when it happens. This work will continue into the New Year.


Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT Whanaungatanga Last year we shared kai and kōrero with Ngāti Rangi and Ngāti Uenuku. This year we had hui with Ngaporo Waimarino Trust and Pipiriki Incorporation. An historic gathering as we talked about our challenges and aspirations, then agreed to consider how we might work together on some shared projects. AWHI again expresses appreciation to those various board members for their generosity of time and thought. We were heartened with the number and quality of applications received for the Te Āti Hau Trust Independent board position. This highlighted the levels of interest of our people for leadership experience. To that end AWHI is formulating a Governance Leadership programme that will provide a quarterly forum of keynote speakers or workshops where this cohort and various board members can connect and reflect. A succession and development programme for all our Whanganui Waimarino entities. We invite your feedback. In the spirit of open transparency, we are pleased to note the formal

lease of the Paetawa Block to Te Urumingi Trust. Paetawa was a leased block returned earlier than AWHI was prepared for, but nevertheless always a milestone when our whenua is returned. Although AWHI had this block earmarked for our honey strategy, Te Urumingi was highly desirous to lease and reconnect the relevant whanau back to this whenua. We have been negotiating for almost a decade to ensure that this becomes a win-win for the shareholders of AWHI, the business of AWHI and the descendants of the tūpuna associated with the Paetawa Block. This is a discrete parcel of land and a commercial market rental has been agreed. AWHI looks forward to a positive relationship with Te Urumingi Trust on this whenua tuku iho. Personal and Professional Development AWHI were pleased to send our CEO Andrew Beijeman to the Stanford University Te Hono Bootcamp earlier this year. This gave a great opportunity to not only be part of the amazing spirit and innovative mindset of Stanford University but also to network with

Toitū Te Mana

business leaders of Aotearoa. The board is seeing results of the “change up” already, a great investment. As a member of Waka Aotearoa, being a group of pastoral farming leaders, I travelled to San Francisco where, amongst other things, we were challenged by being presented with a a hamburger that looked like a burger, smelt like a burger and tasted like a burger... except is was made totally from soy! There have been millions of dollars invested into this new technology, and it is not going away. The catch phrase was “have a burger, where no animal had to die”. This is the future we need to plan for. I was again invited to attend the Prime Minister's Business Delegation to China earlier this year and was

NGAPORO WAIMARINO FOREST TRUST

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Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT

able to re-engage with some key partners including Nongfu Spring and Topping Cuisine, both who have been previously hosted at our marae and on our lands. They present opportunities for direct market access that we continue to consider, and undertake due diligence. Whatarangi and Christina travelled to the United Kingdom on their own account with an ANZCO Red Meat Waitrose Study Tour. This gave them an insight to the ‘paddock-to-plate’ production line giving the consumer what they want. As AWHI is heading in this direction as a consumer-focussed producer it was great to stay abreast of this mature UK market.

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many avenues as is sensible to enable your feedback. We know you enjoy our AWHI magazine and we look forward to sharing more of our amazing stories past and present. Keep telling us about the things you enjoy most and least. In Closing

Staying Close

I do believe it is important to comment, that as the growth of AWHI continues, the business continues to require increased levels of skill and expertise. Good business today is complex. Included on page 4 of the AGM Information Booklet is a skills matrix of the elements and capabilities of an effective board, taken from the Institute of Directors. Consider this as you cast your very important vote.

Thank you to those who responded to our survey, we will look to do this reasonably frequently so we offer as

It is important to acknowledge our people who work smart and hard for us whether it be with our customers

and suppliers, in our offices or on our farms. We are ONE FARM, ONE TEAM. We congratulate our CEO Andrew for continuing to grow into this very important role, and his ability to strengthen his very able team. To the board, thank you for your ongoing support, diligence and commitment. To the whānau of Ātihau Whanganui Incorporation, it remains our honour to serve you. E mihi kau ana me ngā manaakitanga o te Kirihimete ki a koutou. Nāku nā

Mavis Mullins Chairperson


Ä€tihau-Whanganui Incorporation BOARD MEMBERS

Jim Edmonds

Mavis Mullins (Chair)

Whatarangi Murphy-Peehi

Keria Ponga

Brendon Te Tiwha Puketapu

Toni Waho

Che Wilson

(Independent Director, Audit & Risk Committee)

Laurissa Cooney

Francene Wineti (Associate Director)

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Ātihau-Whanganui Incorporation STRATEGIC OVERVIEW

OUR PURPOSE. TOITŪ TE WHENUA PRODUCTIVE LAND

TOITŪ TE TANGATA

PROSPEROUS PEOPLE

TOITŪ TE MANA

PASSIONATE CUSTOMERS

OUR PRIORITIES. OUR PEOPLE THE ENVIRONMENT PROFITABILITY VALUE DIVERSIFICATION SHAREHOLDER CONNECTIVITY

OUR VALUES.

ONE FARM, ONE TEAM

PROVIDING MANAAKI FOR LAND, ANIMALS, RESOURCES AND PEOPLE. SEEKING CONTINUOUS IMPROVEMENT. DELIVERING CUSTOMER VALUE. ACTING WITH INTEGRITY. SHAPING A BETTER FUTURE FOR MOKOPUNA.


Toitū Te Mana

STRATEGIC OUTCOMES. 1 OPERATIONS

WE ARE THE BEST AT WHAT WE DO.

4 ENVIRONMENT WE LOVE AND NURTURE OUR ENVIRONMENT.

2 CUSTOMERS

WE HAVE PASSIONATE AND SATISFIED CUSTOMERS.

3 WEALTH

WE HAVE SUSTAINED ECONOMIC GROWTH.

5 SHAREHOLDERS

WE BENEFIT AND ENGAGE WITH URI IN MEANINGFUL WAYS.

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Ātihau-Whanganui Incorporation LAND-BASED TRAINING

Agricultural training partnership provides foundation for future Land Based Training, Te Āti Hau Trust and Ātihau Whanganui Incorporation (AWHI) have a long history in developing training opportunities for youth in the Ruapehu Region. Working in partnership together for a number of years, the group has delivered a number of different courses introducing tamariki of shareholders to farming. In a bold move, Te Āti Hau Trust agreed to promote agricultural training in partnership with Land Based Training based on AWHI land in 2010. The Awhiwhenua course was born and is based at Ngā Mōkai Marae. Toni Waho was the main driver of this and his vision was to utilise the facilities at Ngā Mōkai and welcome tamariki and whānau back to the land. 12

The course has been successful and now is moving to a residential phase with a smaller number of 6 students living on Te Pā Station in purpose-built accommodation. Land Based Training is a Whanganuibased provider with a long history in the area. It was incorporated in 1996 and has a number of farm training schools throughout the North Island in conjunction with different Māori farming objectives. Te Rua o Te Moko, a training farm and multi-owned dairy farm in South Taranaki was the winner of the Ahu Whenua Trophy in 2014. Otiwhiti Station has been a training school for the past 10 years and has successfully trained close to 100 students. Land Based Training has also offered safety training for staff on the Incorporation farms with quad

bikes, ATVs, computers, first aid and a number of other subjects being delivered. The head of Land Based Training, Rob Gollan, works closely with the AWHI CEO and a number of board members (which over time have included Whatarangi Murphy-Peehi, Toni Waho and Don Robinson) to manage the strategic direction of the course. Derek Priest, the tutor, travels up to the farm weekly and delivers theory unit standards to the students as well as signing off practical assessments. Derek is well respected and a great tutor to the boys and girls that are part of the course. Up until 2016, Hikoi Te Riaki had been the field officer and had done a great job in developing the course in its success within the district.


Hikoi moved on and was replaced by Whetu-Marama Mareikura in 2016. The course has featured on Country Calendar and was well-received by the audience for the positive demonstration and reinforcement of Māori training their own to work on their own whenua. The programme was so successful that it was selected to be in the 50-year celebration of Country Calendar. The tamariki are trained in all aspects of farming from fencing, safety, stock handling, crutching, chemicals and bookwork so they can contribute positively to the industry. A large number of the students have gone on and are now successful employees both on Ātihau land and also in farms within the district. Shaquille McDonnell is one such student, working for Brian Thompson on Tohunga Station and is presently

completing a NZ Certificate L4 in sheep. He is in his third year as a student under Awhiwhenua and one that Derek believes would make a great candidate for entry into the Ahuwhenua Māori Young Farmer of the Year competition in 2017. The course is jointly funded by Land Based Training, Te Āti Hau Trust and the Ātihau Whanganui Incorporation in a model where all parties contribute towards the outcomes of the course. This is viewed by TEC and NZQA as an exemplar model of a community working for the best outcome of that community and its people. Outcomes from the course have been outstanding and show the benefits of Mātauranga Māori. Having tamariki taught on marae, in an environment they are comfortable with, by people they are comfortable with helps them to achieve learning outcomes that might be harder to achieve elsewhere.

Not only do the tamariki learn agriculture but they are involved in cultural activities, supporting the community and supporting the Incorporation. They have helped at the Whanganui River settlement, the Ātihau AGMs, cutting firewood for kaumātua and maintenance on the marae within the wider Ngāti Rangi area. Toni Waho says, “It was a vision of our ancestors that the Ātihau lands would provide a means by which to sustain our people. Training our youngsters to care for the land is essential. E mihi ana – I acknowledge all involved.” AWHI is proud of the work that has been achieved with Land Based Training and the progression that Awhiwhenua has made over the last six years. We are excited about the move towards a residential program and the possibilities that this provides to students.

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Ä€tihau-Whanganui Incorporation CEO REPORT

Over the last 12 months, AWHI

of $15,000 and $85,000 respectfully

has made great progress towards

which helped fund some of the repair

achieving our strategic goals. The

work.

diversification strategy took another leap forward and made a significant difference to the financial result. Good progress has been made in the implementation of our value strategy. We successfully instigated projects focused on the professional development of staff and making the workplace safer. All of this without losing focus on the core business of farming. The following describes this year’s activities in detail.

lambs born decreased only slightly to 107,182 lambs. This equated to an overall lambing percentage of 129% (2015:127%) for the year indicating that our focus on improving per head performance is working. During the season 82,912 seasonal lambs (2015: 81,464) and 3438 winter lambs were sold off the property. AWHI sold 60,652 lambs directly to the works at 17.4 kg carcass weight (CW) (2015:

OPERATIONS REPORT

16.8 CW). Because of the extended

Climate

and a move to protect breeding stock,

dry through summer and into autumn

Late winter was fairly typical of

a larger number of store lambs were

previous seasons for both rainfall and

sold off the property.

temperature. Spring, summer and early autumn were drier and hotter than normal, with farms receiving only 65% of normal rainfall in the period from September through to late May.

Fixed pricing agreements were entered into with our lamb processors which limited AWHI’s exposure to price reductions over summer. Despite this, poorer market prices resulted in an

Soil moisture levels restricted pasture

average lamb price of $85.13.

growth and production from December

A total of 3,893 beef calves were born

until late May when rain brought some respite. This was followed by a warm early winter allowing the farms to recover slightly after a fairly trying period. Dry stock The dry stock farms spent long periods of the year recovering from damage sustained during the June 2015 storms. These storms took out a number of fences, caused stock losses and forced some farms to set stock

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Despite these challenges, total

across AWHI farms, slightly down on previous years due to changes in breeding cow numbers. A focus on finishing steers faster resulted in an increase in prime steers sales to 2,434 steers relative to 1,820 the previous year. These were sold along with 1,104 prime heifers. An earlier cattle kill led to an improvement in the price received for prime steers, increasing from an average price of $1,566 in 2015 to $1,693 per head.

early to prevent further losses. AWHI

During the year, capital stock numbers

appreciated the support of Whanganui

were decreased by 4,000 ewes and

District Council and the Ruapehu

700 breeding cows. These changes

District Council who provided a grant

have allowed the incorporation to


ToitĹŤ Te Whenua

Ä€tihau-Whanganui Incorporation CEO REPORT

successfully winter stock without using

218,689 Kg MS) was achieved on the

the feedlot in Bulls and as part of a

AWHI dairy unit. This was achieved by

continued focus on improving per head

making sure pasture covers and cow

performance. Our goal is to do more

condition score targets were achieved

with less.

at calving. Cow numbers were reduced

Breeding properties spent time throughout the year repairing damage that occurred during the June storms. This work was focused on repairing

to place a greater focus on production per cow. An earlier sowing date of summer crops helped carry strong spring production on into summer.

fences and tracks damaged by slips.

During the year work was completed

At the same time, a limited amount

on the water scheme to ensure that

of development work was completed

cows always have access to fresh

focusing on fencing. Looking forward,

water. At the same time, new laneways

a development plan has been

were built to reduce lameness and

completed for each property which

improve access to paddocks.

outlines the work required to fully develop the farm. Plans are in place to achieve this fully developed state over the next 5 to 10 years. Dairy For the second year in a row, record production of 247,172 kg MS (2015:

Changes have been made to reduce the cost of operating the dairy farm. These include wintering more cows

AWHI Dairy Production (kg MS) 250,000 225,000

in Ohakune and installing an in-

200,000

shed feeding system to reduce feed

175,000

wastage and feeding costs. Whilst the final Fonterra pay-out

150,000 2014 2015 2016

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Ātihau-Whanganui Incorporation CEO REPORT

Sources of Gross Operating Profit (%) 100%

were placed on Te Pā and Tawanui.

for further bee hives with a further 370

75%

A second beekeeper was recruited

to be purchased in the spring of 2017.

in February after working casually

50%

for AWHI. 13.8 tonnes of honey was

25%

harvested successfully from hives owned and operated by AWHI for the

0% 2014

2015 Apiary

2016 Farming

declined to $3.90 per kg MS during the season, management took the opportunity offered to lock in a guaranteed milk price in December for a small proportion of milk at $4.60kg MS.

Watson and Son continue to place hives on those sites not managed by AWHI. From these sites 67 tonnes of honey was harvested. Total honey production was down slightly on the previous year to just under 80 tonnes of honey whilst the average value per

Honey

kg increased to just under $50 per kg.

Honey continues to be a growing

Gross profit from Apiary was $1.3

part of the AWHI business. An Apiary

million, a $787 thousand increase on

Manager was recruited during the year with experience managing 2,500 hives. At the same time AWHI was able to purchase and relocate 400 hives out of the South Island. These hives 16

first time. An exciting time for us.

the previous year. In the 2016 year, apiary activities contributed 24% to total gross farm profit, compared to 9% in 2015. During the year contracts were signed

Forestry and Carbon In total, 120,000 New Zealand Units (NZU’s) were sold during the year at an average price of $8.60 per unit. A government entitlement was not received this year due to a sampling error which will be rectified in the next financial year. AWHI successfully reached agreement with Earnslaw One regarding historic valuations of the Winstone forest reported in the 2015 annual report. As a result of this a payment of historic rent arrears was made to AWHI. Investments During the year the Papahaua Forest joint venture was revalued to $1.6 million (AWHI’s half share). No major work was completed on the JV forest.


Ātihau-Whanganui Incorporation CEO REPORT Development work continued at

committed and optimistic about the

Te Hou during the year. Ground

future of Te Hou and its ability to

contouring was completed on the dairy

add further diversification to AWHI’s

farm and irrigation installed both on

business.

land purchased in the 2015 year and in areas not reached by centre pivots.

PEOPLE

A concrete silage pad was installed

Health and Safety

to reduce silage wastage. On the dry

AWHI is committed to improving

stock unit mature pine plantations were harvested, ground contoured and a further three centre-pivot irrigators installed. Milk production was up on the previous year with 415,875 kg MS

the health and safety of all workers, visitors and stakeholders. As part of this, a review of health and safety management was completed during the year which led to changes to AWHI’s health and safety polices and

achieved (2016: 376,612 kg MS)

management systems.

assisted by the near fully operational

A handbook was created for all staff

irrigation scheme. Production on the

to explain AWHI’s policies, biggest

if a motorbike or side-by-side tips over. Following a successful trial these devices will be rolled out to all farms

dry stock unit is still limited by the lack

hazards and emergency procedures.

during 2017.

of irrigation, with those areas that are

This booklet will be revised during

irrigated producing significantly more

2017 with the aim of making it simpler

To ensure staff are involved in the

than those areas that are not.

and more user friendly.

The profitability of Te Hou (from both

All staff have been provided with

was established. This group meets

the dairy and cropping enterprises) is

emergency locator beacons during

bi-monthly to review incidents and

highly linked to the dairy pay-out. As

the year to be used in emergency

provide safety suggestions to the

such, we estimate Te Hou will record

situations. They were also issued with

a loss of $2.2 million (our share $750

hi vis rainwear and summer clothing.

management team.

thousand). Given the productive gains

AWHI began a trial of Farm Angel, a

experienced with irrigation we remain

device which sets off a locator beacon

management of safety, an Employee Health and Safety focus group

Staff Development In 2016, a professional development

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system created in the previous year was rolled out. This included the implementation of a performance management system (PMS) which requires managers and their teams to have at least one formal performance review during the year. This system has improved based on manager feedback, making it simpler and easier to implement. Over time and with more practice managers will be better able to provide staff with feedback both in formal and informal settings. An extension and training programme was also rolled out over the year.

second-year students with fixed term

Cost of finance was equal to $1.75

These events are focused on providing

employment to give them more time to

million, down $111 thousand on the

staff with the knowledge and skills

develop their skills.

previous year.

LAND

Total equity increased by $3.4 million

so that they can reach their potential, and to understand why we may be focusing on certain areas of the

Environmental Protection

business. Each event has a specific

AWHI continued its commitment to

focus and often starts by reviewing previous targets and ends with setting new ones. Over the year, three separate events were held and as with the PMS changes were made based on staff feedback, making sure the programme will be even better in 2017. A banded staff remuneration system

2016. Working with Horizons Regional Council, AWHI conducted predator control within 300 hectares of bush at Ohorea. This will allow juvenile kiwi the opportunity to grow big enough to defend themselves from predators before moving to other bush blocks

AWHI achieved an EBITDA $4.6 million (2015: $3.5 million) and a net operating surplus of $408 thousand (2015: -$1.8 million loss). Concluding Comments I’d like to end by thanking the team that works for AWHI. Without you none of the above would be possible - ONE FARM, ONE TEAM. AWHI is

was created during the year. This

nearby.

ensures staff from across the

Over 10 kilometres of riparian fencing

are passionate about the business and

was completed, again with support

committed to making the most of the

incorporation that are performing at similar levels in similar jobs are rewarded in the same way. The average pay in each band can also be compared to remuneration surveys to ensure that AWHI is fairly rewarding its employees relative to others in the industry. Last year the management of Awhiwhenua moved from Te Āti Hau Trust to AWHI. As part of this change the first year of the programme is now based at Te Pā Station. Four very capable and determined

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looking after the environment during

to $128 million.

from Horizons Regional Council. We also made applications to protect two large bush blocks under Ngā Whenua Rāhui at Te Pā and Tawanui. These applications are likely to be approved during 2017. Financial Result Gross farm revenue increased to $19.5 million from 18.7 million. This was the result of increases in revenue from the

lucky to have a team of people that

asset that we are responsible for. Next year with a revised business plan we will continue to focus on our people, diversification, adding value and increasing farm profitability. At the same time, we will place increased importance on the protection of the environment and on building shareholder connectivity, shareholder relevance.

sale of wool, beef and honey, offset by

We have another exciting year ahead!

small declines in sheep sales.

Nāku Nā

students started the course in 2016

As of 30 June 2016, term debt totalled

and the Awhiwhenua management

$28.9 million, equivalent to 22% of

team are very proud of these cadet

total equity. Term debt reduced by

achievements so far. Plans have been

$921 thousand as part of improved

made to establish a full residential

performance and with the sale of some

programme in 2017 and to provide

capital stock.

Andrew Beijeman CEO


ĀTIHAU-WHANGANUI INCORPORATION Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 FINANCIAL HEALTH

The long term prosperity of AWHI is dependent on the organisation being managed effectively which is why the board elections are critical to making sure the best people with diverse skills represent the incorporation. The board you elect is responsible for the governance of the incorporation which includes making sure it remains in good health. To maintain good health the board has developed rules, relationships, policies and procedures that everyone has to follow including the board itself. Examples of these are: - Having a business plan and reviewing this on a regular basis - Completing financial forecasts each year and measuring the incorporations performance against it each month. - Having a treasury policy which determines things like how much risk can be carried with interest rates or how much debt the organisation can have. The board has developed a new risk management framework that will be monitored monthly which highlights any opportunities and risks facing the organisation. By having these restrictions, it limits the amount of risk the organisation is able or prepared to take and in fact brings more certainty to the performance of the incorporation. This therefore enables AWHI to be in a stronger position when making key decisions for the organisation. So is AWHI in good financial health? When considering if a business is in good health you need to look at the fundamentals which are things like Income Statement, Balance Sheet and Cashflow. Income Statement – The Income Statement for the past 2 years has shown a good surplus once you remove the amortisation that relates to capital expenditure incurred a number of years ago. Balance Sheet – The balance sheet for the incorporation would be considered to be in a strong position with debt to equity levels of 22% which is a lot lower than the industry average. The incorporation has a policy to limit the amount of debt to 30% which if the debt was that high the incorporation would still be considered to be in a strong position. Cashflow – The cash surplus from operating activities has been strong for the past couple of years and has allowed the board to invest approximately $3million dollars over the past 2 years and also continue to make shareholder distributions without borrowing any additional funds. These investments which include honey and the Te Hou partnership have been made as part of a strategy to diversify and strengthen the incorporations future income streams and also improve the production of the current farming operations. When you combine the key fundamental above the incorporation is in a strong position and with further investment can become more diversified and efficient resulting in a stronger and stable business that will ensure the current and future shareholders will continue to prosper.

Hilton Joll Partner Deloitte Limited (as Trustee for the Deloitte Trading Trust) 19


Ä€tihau-Whanganui Incorporation SUMMARY OF KEY FINANCIAL INFORMATION For the Year Ended 30 June 2016

2016 $,000

2015 $,000

19,527

18,728

(19,119)

(20,577)

408

(1,849)

4,611

3,527

Cost of Finance

(1,778)

(1,887)

Depreciation & loss on sale

(2,425)

(3,489)

Closing Equity

128,319

124,934

Total BNZ Debt

(28,891)

(29,813)

(2,067)

(2,067)

(30,958)

(31,880)

1,312

1,848

Gross Revenue Total Expenses Net Surplus / (Deficit) before tax

EBITDA

Te Hou Deferred Contribution Term Liabilities excl unclaimed Divs Capital Expenditure (incl Development)

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169%

13%

34%

Apiary Revenue

Milk Solids Production

Prime Steer Sales

Gross revenue from apiary $1.5M

Record Production of 247,172Kg

Increase prime steer sales to 2,434

EBITDA

Gross Farm Turnover

Net Farm Income

Farm Equity

2016

2016

2016

$4.6M

$19.5M

$5.7M

2016

$128.3M

2015 2015

$3.5M

2015

$18.7M

$5.9M

2015

$124.9M

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Te Āti Hau Trust CHAIRPERSON'S REPORT would not be surprising for grant

TRACKING PROGRESS

applications related to kaumātua

In 2016, general and education grants continue to reflect the wideranging interests, activities and needs of our shareholders – their whānau, kaumātua, tamariki and mokopuna. The approval process is usually

health and well-being to rise as the baby boomer generation move closer toward retirement. Alongside these areas of interest, the Trust is forecasting more applications for

straightforward for most applications

marae initiatives and related costs in

when they are thoughtfully completed

future years.

with supporting evidence. The Trust follows application trends and notes the benefit for recipients based on their reports and feedback. It is always

Te Āti Hau Trust has reviewed and refined grant policies for marae assistance and kaumātua health and well-being. These policies will be

considerate and appreciated when recipients acknowledge their grants by letting the Trust know about their progress and achievements.

included on the grant application form and posted on the AWHI website. The Trust also revised administrative processes and procedures for

Whereas education grants are expected to increase, in part due to a youthful population, the Trust has also noticed that more applications are being submitted to assist kaumātua with social gatherings, pāhake sports events and ‘quality of life’ needs such as mobility, hearing loss, major dental

receiving, assessing and responding to grant applications. Importantly, office staff regularly keep the Trust informed about the receipt of applications and any requests that may require more attention before an application is completed.

work, poor eyesight and warmth. It In 2016, the Trust approved education grants for 277 recipients. EDUCATION GRANT RECIPIENTS 2016

Agriculture 1%

Overseas 3%

Post Graduate 5% High Performance 1%

Tertiary General 47%

Secondary 26%

PHD 0% Medical 17%

22


Toitū Te Tangata

Te Āti Hau Trust CHAIRPERSON'S REPORT The Trust approved general grants for 32 recipients in 2016. GENERAL GRANT DISTRIBUTION 2016

Culture 22%

Marae 3%

Sport & Art 75%

In summary, $28,445 was distributed for general grants and $200,800 was distributed for education grants. The total value of grants approved and distributed in 2016 was $229,245. EDUCATION GRANT DISTRIBUTION 2016

GENERAL GRANT RECIPIENTS 2016 Marae 9%

Overseas 10%

Sport & Art 40%

Tertiary General 44%

PHD 2% Agriculture 3% Post Graduate 10% High Performance 2% Secondary 9% Culture 51%

Medical 20%

TE ĀTI HAU TRUST OPERATIONS 2015/16 Trust Activity 2016

Budget

30 June

Total Trust Income

400,000

380,103

Tribal Purposes grant from AWHI and a small amount of interest. The Trust draws on the grant from AWHI only when it requires funds for payment of grants and does not hold investments Administration Expenses

50,000

81,784

The Trust has revised its grants policies, processes and procedures. This included revision of arrangements around all data collection and the application guidelines. Increased cost particularly related to the follow-up of incomplete grant applications. Grant Administrator Expenses

10,000

3,003

Te Āti Hau Trust revamped all its policies and procedures which resulted in dispensing of the need for a grants administrator. This task is carried out within the AWHI office and included in administration expenses.

23


Te Āti Hau Trust CHAIRPERSON'S REPORT TE ĀTI HAU TRUST OPERATIONS 2015/16 (CONTINUED) Trust Activity 2016 Tangihanga Koha

Budget

30 June

20,000

12,600

Tangihanga cost reduced in 2015/16 however ensuring koha for a tent for grieving whānau remains a priority for Te Ati Hau Trust. Database

20,000

0

It was decided to reassess the grant administration database needs. Awhiwhenua Training Project

0

39

Awhiwhenua training project is now administered by Ātihau Whanganui Incorporation. This is the final expenditure to be incurred by the Trust. Grants

280,000

229,245

Grants are expected to increase in 2016/17 as a result of the work completed with grants policies. Net Surplus Funds Brought forward Funds Carried forward

Nil 20,000 20,000

53,432 19,695 73,127

TE ĀTI HAU TRUST BUDGET FORECAST 2016-2017 % Agreed AWHI Budget

Totals

Distribution Areas

% Grants Allocation

Education Grants

70

187,400

General Grants

30

84,600

Total Grants Fund

100

78

272,000

Board

12,000

Secretariat

56,000

Operations

10,000

Total Costs

22

78,000

Total

100

350,000

SPECIAL SCHOLARSHIPS

The Trust’s recommendations to the AWHI Board for the following scholarships are accepted: Ohotū

$2,000 per year for two years

Kereopa Kendrix-Woon Joshua Firmin Two scholarships to be awarded

Robin Murphy – Peehi Ātihau Whanganui Ravensdown Scholarship

24

$8,000 per year for two years

Roy Hoerara To be awarded


Te Āti Hau Trust CHAIRPERSON'S REPORT LOOKING BACK 2010 - 2016 Since 2009, the Trust has assisted shareholders and their whānau,

Sources of Gross Operating Profit (%)

kaumātua, tamariki and mokopuna

180,000

as well as initiatives for marae,

150,000

tangihanga and hui. The Trust has

120,000

compiled this data information on grant distribution and grant recipients

Education Grants

90,000

from 2010 to 2016. Although the

60,000

assistance provided over these years

30,000

for education and general grants has

General Grants

210,000

0

been modest in most cases, the Trust also distributed reasonable amounts for

2010

2011

2012

2013

2014

2015

2016

worthy causes and endeavours such as the home insulation project.

Grant distribution for education

for each year from 2014-2016. The

since 2010 to 2016 whilst education

purposes increased from 2011-

number of recipients for general grants

grants have stayed above 250

2014 and has since levelled out. In

fluctuated from one year to the next

recipients in 2014-2016.

comparison, general grants peaked

Total Number of Grant Recipients 2010-2016

in 2013 with a lower distribution in 2016 which was on a par with the distribution in 2010. This was unexpected although the Trust’s

300

review and revision of two general

250

grant policies did cause a minor delay with the approvals process for a small number of applications which have since been considered. The total number of grant recipients increased from 2010-2012 and levelled out with over 300 total grant recipients

General Grants

350

Education Grants

200 150 100 50 0

2010

2011

2012

2013

2014

2015

2016

Feedback and reports from recipients

fair to say the Trust can be expected to

In completing this AGM report for Te Āti

acknowledge the Trust’s value to

receive grant applications to support

Hau Trust, here are a few samples of

those who receive grants. In the past

those in need and worthy endeavours.

general and education grant recipients’

six years, the opportunity to access

At the same time, the Trust is open

reports and feedback about their

education and general grants has been

to the possibility of working alongside

enterprise and progress.

appreciated by the tamariki, mokopuna

other organisations whose purposes

and whānau of shareholders. With the

and outlook are well-suited to the Trust.

positive responses to date, it would be

25


Te Āti Hau Trust CHAIRPERSON'S REPORT

Please accept my utmost thanks for the recent financial support you have given me to assist in

thought I would write to you and share a synopsis

my transition to living and working at the United

of my journey thus far, so you can appreciate how

Nations in New York. I have been very fortunate to

significant your grant has been. I officially began

have had the support of Te Āti Hau Trust throughout

the EMBA programme here at Shidler College of

my journey at law school, and I am positively

Business at the University of Hawaii. The cost for

overwhelmed and grateful for the support you have

this course is large and the support of the Platinum

provided this time as I take my first steps into my

Triangle Business Award through Fulbright helps but

career.

leaves a fair amount to still [be] found. Your grant

has assisted with the purchase of my books and

Keepa Hipango - General Grant Recipient – Internship at NZs Permanent Mission to the United Nations

Ngā mihi ki a koutou te poari o Te Āti Hau. I

travel to residency. I’m so grateful for your support and will remember your generosity through my

journey.

I am pleased to advise you that you have been

Sarah Reo - Education Grant Recipient – Business Studies Program at Overseas University

awarded a grade of A- (mark: 76) for the paper DSOE592 Dissertation for which you are enrolled in 2015. I believe this completes the requirements of your Masters of Educational Leadership degree, which I have recommended be awarded with first

class honours.

University Letter to Education Grant Recipient David McLeod – Post-Graduate High Performance

20 years ago the decision was made to plan for the restoration of the wharepuni and marae of Kohanga Rehua. The rebuild commenced in 2014 and since then the structural work has been completed with raupo and tōtara from Ātihau Incorporation lands. The aim of this project is to rededicate the marae for

Below Left: Te Kohanga Rehua October 2013 & April 2016. Bottom Left and Centre: Anton McKay discussing the Kaiwhaiki water project. Kaumātua, John Maihi, blessing the commencement of the project with karakia.

26

the benefit of all Whanganui descendants.

General Grant Recipient – Te Kohanga Rehua Restoration Project


CACTUS is a well-established programme with a proven track record of developing students’ physical

Persistence has paid off for the residents of the small Whanganui River settlement of Kaiwhaiki

and mental well-being, assisting local youth and

with a start this week on a major upgrade of the

their personal development and reducing crime.

community's water supply. At the moment two

Ruapehu College are in their second year with 30

water tanks on a hill above the houses and marae

students aged between 14 and 18 years old. Most

about 20km north of Whanganui supply the families

of these students are the tamariki and mokopuna

but the project will see another six tanks put in place

of Ātihau Incorporation shareholders. With the

along with a filtration plant. The $300,000 project

support of the local police, and the army the college

will give greater surety of water supply for the 40

has encouraged students and their whānau from

families who live at Kaiwhaiki. The water supply has

Ohakune, Raetihi and Waiouru to participate.

been serving the marae for about 60 years but was

General Grant Recipient – CACTUS Student Leadership Development Programme

in desperate need of an upgrade. Anton McKay, who is project managing the job for the community, said Kaiwhaiki was the largest living marae on the

My appreciation to the selection committee for their continued support of my tertiary education. I am making significant strides toward completing my honours degree. At this time, my research is underway. I am ultimately targeting a career in the film and media industry. I hope to further my

academic studies abroad in the United States.

Ngarangi Haerewa - Education Grant Recipient – Film and Media Career Aspirations

Below Right: Students from Ruapehu College work together on a teamwork challenge as part of the CACTUS Student Leadership Development Programme.

river "so this project is a major upgrade of our water system". "A new filtration system will feed from the spring and link with the existing water line to the houses on the marae. The next stage will be

replacing that existing pipeline," he said.

General Grant Recipient - Kaiwhaiki Marae Residents Community Project

Nāku iti nei,

Dr Brendon Te Tiwha Puketapu Chair, Te Āti Hau Trust

27


Te Āti Hau Trust GENERAL GRANTS LIST

Sport, Art and Travel $

Recipients

General Grant Categories

Te Taikura o Te Awa Tupua 

Returned Grant

Akapita, Caleb

Representing school at National rowing champs - Maadi Cup

100

Andrews, Shannah

Representing school at National rowing champs - Maadi Cup

100

Broughton, Chavez

Taranaki U17 mixed touch Rep

100

Joseph, Anastasia

Secondary School Waka Ama Nationals

100

Macdonald, Mikaylah

Secondary School Waka Ama Nationals

100

Millar, Mitchell

Rep Whanganui in U21 touch rugby at National champs

100

Millar-Potaka, Mahinarangi

Rep Whanganui in U21 touch rugby at National champs

100

Rapana-Tuirirangi, Matthew

Secondary School Waka Ama Nationals

100

Thompson, Donovan

Representing school at National rowing champs - Maadi Cup

100

Waitai, Kororia

Secondary School Waka Ama Nationals

100

Josephs, Jean

funding to participate in weekly riding for disabled classes

345

Peke-Mason, Soraya

Attendance participation Maori Legal business and governance forum

350

Pickering, Hine-aa-rangi

Music - invited to take youth music to China

400

Downs, Jayden

NZ Junior Box Champs Russia

500

Dyden, Opetini

Representing NZ - Athletics

500

Ihakara, Tereana

Assist family in Waka Ama world champs

500

Mere Te Aroha Sports Club

Netball Equipment

500

Pointon, Chantelle Kay

White sox in Canada

500

St Vincent’s Maori Club

Uniforms

500

Te Kani, Kahu

NZ Junior Volleyball Canberra

500

Hone, Lauren & Pirihira Tamehana

Rep Whanganui in Waka Ama World Champs

1,000

Wilson-Leahy, Te Puawai

Global Youth Ambassador Programme to Uganda

1,000

Kumeroa, Bennett

Olympic weightlifting

1,500

Ruapehu College

Support and develop youth CACTUS programme

2,500

-150

11,445

28


Te Āti Hau Trust GENERAL GRANTS LIST

Cultural $

Recipients

General Grant Categories

Raetihi School BOT

Culture Festival

500

Ruapehu Maori Catholic Club

Hui Aranga Travel Costs

500

Te Roopu o Parikino

Hui Aranga Travel Costs

500

Pakaitore

Supply food for three day hui

1,000

Te Patu, Adrian

World Federation of Public Health, General Assembly in Geneva

1,000

Te Roopu Ote Whitu Maori Culture Club

Hui Aranga Travel Costs

1,000

Hui Aranga Management Committee

Easter Catholic gathering in Whanganui

10,000 14,500

Marae $

Recipients

General Grant Categories

Chris Kumeroa

Whanganui Hunting & Food festival - Parikino Marae

2,500 2,500

Net General Grants

28,445

29


Te Āti Hau Trust EDUCATION GRANTS LIST Tertiary - General

30

$

Recipients

Qualification

Patea, Raina

Contemporary Music Performance

300

Stott, Donna

Commerce

400

Brooks, Justin

Majoring Physics

500

Pewhairangi, Rerekohu

Sports & Exercise

500

Haenga, Awhina

Te Tohu Paetahi Nga Poutaka

600

Hurn, Joshua

Physical Education

600

McGregor, Jacob

Arts

600

Smith, Nemesis

Administration & Computing

600

Akapita, Ngapera

Bachelor of Applied Social Work

700

Akapita, Tuhirangi

Cert in Sports and Recreation

700

Allen, Camilla

NZ Diploma in Business

700

Apou, Freeman

Science / Arts

700

Babbington, Sasha-Dee

Bachelor of Business Management/Bachelor of law

700

Baker, Paul

Cert in Cookery Level 4

700

Baker, Quaylen

Cert in Automotive Workshop and Repair

700

Baldwin, Michael

Drivers Licence for Truck Class 2

700

Balsley, Te Pohe

Business Administration Level 4

700

Bell, Madeleine

Cojoint Bachelor of Commerce and Arts

700

Blackett, Jamie

Certificate in Introduction to Study

700

Bristol, Doreen

Travel & Tourism

700

Brooks, Alexandra

Bachelor of Teaching (Primary)

700

Brooks, Temaia

Bachelor of Media and Creative Technologies

700

Buchanan, Ayalla

Bachelor of Applied Arts

700

Chadwick, David

National Cert in Carpentry

700

Dobbyn, Gaylene

Graduate Diploma in Arts Psychology

700

Durston, Courtenay

Bachelor of Social Science Psychology

700

Durston, Madison

Bachelor of Teaching and Arts

700

Duxfield, Ella

Bachelor of Applied Science Sports and Exercise Nutrition

700

Francis, Melanie

Diploma in Business Studies

700

Goodhall, Liam

Certificate in Exercise and Sport Performance

700

Graham-Ratana, Karaemea

Bachelor of Health Science

700

Haami, Pita

Nothing specified

700

Haami, Kararaina

Awhiwhenua Land Based Training School

700


Te Āti Hau Trust EDUCATION GRANTS LIST Tertiary - General $

Recipients

Qualification

Haami-Heron, Monique

International Diploma in Hotel Management

700

Haenga, Awhina

Bachelor of Social Work

700

Hallett, Paul

NZ Diploma in Forest Management

700

Hammond, Isabella

Bachelor of Law and Politics

700

Harrison, Tessa

Poutuarongo Toiora Whanau Y2

700

Healey, Natalie

Law

700

Hina, Te Oranga

Te Tohu Paetahi (BA)

700

Hipango, Roimata

Bachelor of Architectural Studies

700

Houpapa, Sonny

Bachelor of Creative Enterprises

700

Hourigan, Conor

Electrical Engineering Apprenticeship

700

Hunia, Metapere

Bachelor of Management Studies

700

Huwyler-Hunia, Kaylin

Bachelor of Commerce and PE

700

Jonas, Nikayla

Bachelor of Education and Pacific Studies

700

Jones, Blade

Heke Reo

700

Kahu-Ratana, Robert

Plumbing/Gasfitting apprenticeship

700

Kawau, Ngahuia

Poutuarongo Whare Tapere Literary Performing Arts

700

Kwocksun, Lonnie

Cert in MIG & TIG Welding

700

Lindsay, Nova

Te Tohu Paetahi Nga Poutoko Whakarara Oranga

700

Mair, Te Paraihe

Certificate of Ag-Beef and Sheep

700

Maniapoto, Eparaima

Diploma in Contemporary Music Performance MUSIC

700

Mareikura, Richard

Certificate in Fitness

700

Mareikura, Taura

Cert Exercise Sport Performance Level 4

700

Marriner, Cheryl

Bachelor of Applied Science (Environmental)

700

Marshall, Sharon

Bachelor of Social Work

700

Marshall-Nyman, Kealyn

BA/Bteach, Economics & Te Reo MÄ ori

700

Mason, Te Waiata

Bachelor of Literary Performing Arts

700

Mason-Loveridge, Deane

Bachelor of Psychology and Philosophy

700

Matthews, Anaru

Bachelor of Law

700

McCool, Toni

Cert in Social Services Level 4

700

McKechnie, Arthur

Bachelor of Commerce

700

Metekingi, Marara

Poutuarongo Kawa Oranga

700

Miles, Simon

Nothing specified

700

Miller, Joel Philip

Certificate in Information Technology

700

31


Te Āti Hau Trust EDUCATION GRANTS LIST Tertiary - General

32

$

Recipients

Qualification

Mitchell, Sandy

NZ Cert in Animal Care

700

Nahona, Tamahau

Automotive Engineering

700

Ngataki, Lisa Marie

Diploma in Beauty Level 5

700

O'Neil, Charis

Social Work

700

O'Neil-Cockburn, Olivia

Diploma of Marine Studies/Bachelor of Science

700

Osborne, Stephanie

Statistical Analysis

700

Paewai, Trina

Bachelor of Business Studies

700

Pahl, Tracy

Health Science

700

Pakai, Wipaki

Awhiwhenua Land Based Training School

700

Parkes, Grace

Bachelor of Law and Arts majoring in Maori

700

Patea, Anthony

Poutuarongo Whare Tapere

700

Peeti, Teresa

National Cert in Cookery Level 4

700

Perkins-Gordon, Dayne

Bachelor of Computing and Maths Sciences

700

Poutini, Valencia

Cert in Travel, Cultural Tourism & IATA fares & ticketing

700

Pukutohe, Klay

Bachelor of Sport and Recreation

700

Puna, Allandria

Bachelor of Commerce - Accounting and Māori

700

Ranginui-Thompson, Marsh

Diploma in Furniture Making

700

Ratana, Manaia

Bachelor of Literary Performing Arts

700

Reihana, Rachel

Bachelor of Social Sciences

700

Richards, Jhanelle

Bachelor of Nursing

700

Rossiter, Len-Juane

Sport & Leisure

700

Rossiter, Len-Juane

Diploma in Applied Sport & Coaching Management

700

Rowe, Kyarni

Bachelor of Arts Te Reo Māori and Māori Studies

700

Rowe, Tamahau

Bachelor of Sport and Leisure

700

Ruta, Cheyenne

Bachelor of Social Practice

700

Saywell, Arianna

Diploma - Legal Executive

700

Selwyn, Karli

Bachelor of Health Science (Oral Health)

700

Smallman, Edward

NZ Diploma in Cookery Level 5

700

Stanley, Te Rangimarie

Poutuarongo Whare Tapere Literary Performing Arts

700

Stewart, Michael

Bachelor of Engineering (Honours)

700

Ta'ala, Ahlia-Mei

Bachelor of Architectural Studies

700

Ta'ala, Teuila

Bachelor of Design

700


Te Āti Hau Trust EDUCATION GRANTS LIST Tertiary - General $

Recipients

Qualification

Tahuparae, Nga Remu Huia

Bachelor of Science and Geogrpahy

700

Tamarua-Toa, Caleb

Cert of Applied Technology

700

Tamehana, Tamati

National Cert in Carpentry

700

Tapa, Ellie

Bachelor of Commerce

700

Tapa, Maggie

Bachelor of Science

700

Taura, Patricia

BA Te Reo Māori & Tikanga Māori

700

Taurima, Kendyl

Bachelor of Psychology

700

Taurima, Sarita

Bachelor of Communications

700

Taylor-Heke, Pita

Nothing specified

700

Te Ahuru-Millar, Sasha

Commerce

700

Te Ahuru-Millar, Courtenay

Cert in Foundation Education

700

Te Patu, Grant

Bachelor of Bicultural Social Work

700

Te Waaka, Pinto

Diploma in Applied Animation

700

Teki, Mikaere

Health Science Foundation Studies

700

Thompson, Jaedyn

Bachelor of Science

700

Toru, Ariki

Cert in Transportation

700

Treanor, Kirsti

Te Aho Tatairangi

700

Tuirirangi-Rapana, Pheenyx

Cert of Fitness

700

Twomey, Shaia

Te Aho Tatairangi

700

Tyson, Ashlee

Bachelor of Commerce and Law

700

Vercoe, Haukapuanui

Bachelor of Engineering (Honours)

700

Vette, Dinah

Masters Public Management

700

Wakefield, Arama

Bachelor of Commerce Accouting and Law

700

Wakefield, Te Orunui Jesse

National Certificate in Welding Level 3

700

Wallace, Chontelle

Poutuarongo Whare Tapere

700

Wallace, Te Rua

Diploma in Arts and Design

700

Wardlaw, Jaymie Kate

Bachelor of Law

700

Whanarere, Ina Ginette

Te Pou Tahu Whakaakoranga

700

Wiari, Penelope

Bachelor of Bicultural Social Work

700

Wilson, Sarah

Bachelor of Science in Psychology and Criminology

700

Zagrobelna, Jessica

Level 3 Dairy

700 Net Tertiary General Grants

88,800

33


Te Āti Hau Trust EDUCATION GRANTS LIST Medical

34

$

Recipients

Qualification

Yandall, Jolene

Postgrad Diploma in Primary Health Care

350

Matthews, Annalise

Nursing

600

Barrett, Alicia

Bachelor of Nursing

700

Brownbridge, Matthew

Bachelor of Medicine and Surgery

700

Butler, Karen

Bachelor of Nursing

700

Dixon, Emily-Louise

Certificate in Health Science Level 4

700

Enright, Claire

Bachelor of Midwifery

700

Farrell, Samantha

Bachelor of Health Science (Physiotherapy)

700

Fonotae, Leilani

Bachelor of Nursing

700

Foster, Gypsy

Bachelor of Nursing

700

Hamilton, Jessica

Bachelor of Nursing

700

Hartley, Arihia

Bachelor of Nursing

700

Hohepa, Marion

Bachelor of Nursing

700

Jackson, Ngawai

Bachelor of Nursing

700

Kopua-Butler, Kahu

Bachelor of Applied Science (Medical Imaging)

700

Kumeroa, Alexandra

Bachelor of Nursing

700

Lambert, Brittany

Bachelor of Midwifery

700

Mangos, Brody

Bachelor of Health Science in Paramedicine

700

McKechnie, Hemi

Bachelor of Pharmacy

700

Ngatai-Broughton, Tara

Bachelor of Nursing

700

Nicoll, Fiona

Health Sciences First Year (Bsc)

700

Ponga, Tahimanawa

Bachelor of Nursing

700

Ranginui-Church, Julie

Nursing

700

Ratana, Darinee

Bachelor of Nursing

700


Te Āti Hau Trust EDUCATION GRANTS LIST Medical $

Recipients

Qualification

Ryan, Ihaia

Medicine/Surgery

700

Sharma, Alayna

Bachelor of Nursing

700

Suliafu, Temaia

Bachelor of Nursing

700

Tahana-Tyson, Kayla

Bachelor of Midwifery

700

Tairi-Bartlett, Waimarama

Cert in Health Science Level 3

700

Takarangi, Lara Amy

Bachelor of Nursing

700

Taylor, Brittany

Health Sciences First Year (Bsc)

700

Turia, Tariana

Certificate in Health and Science

700

Tyson, Lorraine

Bachelor of Nursing

700

Walters, Angeline Cherokee

Health Sciences First Year (Bsc)

700

Wiari, Rangimarie

Health Sciences First Year (Bsc)

700

Wilks, Alice

Cert in Science and Health

700

Wright, Samuel

Bachelor of Applied Science (Consumer Food Science)

700

Yates, Symmone

Bachelor of Nursing

700

Brooks, Christopher

Medicine

1,200

Alexander-Paewai, Saskia

Bachelor of Health Science Physiotherapy

1,500

Brooks, Christopher A

Doctor Studying in NSW Australia

1,500

Brownbridge, Brent

Pharmacy

1,500

McFater, Hoani

Bachelor of Medicine and Surgery

1,500

Ropata, Malachi

Bachelor of Medicine and Surgery

1,500

Ryan, Ihaia

Bachelor of Medicine and Surgery

1,500

Scorringe, Katie

Bachelor of Medicine and Surgery

1,500

Teka, Frith

Post Grad Dilpoma in Health Sciences in Advanced Nursing

1,500

Tyson, Kelli-Ann

Bachelor of Nursing

1,500 Net Medical Grants

40,850

35


Te Āti Hau Trust EDUCATION GRANTS LIST Secondary Recipients

36

$

$

Recipients

Akapita, Caleb

250

Ngamoko-Joseph, Anastacia

250

Alexander, Tyra

250

Ngatoa-Wallace, Emason

250

Andrews, Shannah

250

Owens, Cortney

250

Beamsley-Varu, Jayden

250

Pari, Keilym

250

Downs, Jayden

250

Pauro-McQaude, Kaya

250

Gardiner, Manahi

250

Peke Meihana, Arama

250

Goss, Kayzia

250

Ponga, Tui

250

Goss, Suraya

250

Potaka, Hemi

250

Haenga, Kasey (2015)

250

Poutini, Ahungarangi

250

Haenga, Kasey (2016)

250

Quinn, Kwin

250

Haenga, Lakan

250

Rapana-Tuirirangi, Mathew

250

Haenga, Riley

250

Reo Rapana, Jackie

250

Hartley, Summah

250

Stevenson, Will

250

Healey-Forde, Natalia

250

Tahana-James, Keyton

250

Healey-Forde, Seona

250

Taiaroa, Moengarau

250

Hibbard, Kaiya

250

Taiaroa, Tiaho (2015)

250

Hina, Keaoni

250

Taiaroa, Tiaho (2016)

250

Hourigan, Beau

250

Takiari, Paetawa

250

Huria, Caitlin

250

Taylor, Capri

250

Kingi, Te Onemauri

250

Taylor, Kaleb-Lee

250

Kuiti, Tayla

250

Taylor-Heke, Herena

250

Kumeroa, Benet

250

Te Amo, Harmony

250

Kumeroa, Logan

250

Teki, Isaiah

250

Long, Marlon

250

Teki, Raemon

250

Luff, Dontae

250

Thompson, Donovan (2015)

250

Macdonald, Mikaylah

250

Thompson, Donovan (2016)

250

Machin-Clark, Wyllow

250

Thompson, Tiarna Juanita

250

Malcolm, Devon

250

Tuirirangi-Rapana, Epic

250

Malcolm, Jesse

250

Waitai, Ariana

250

Mansell, Te Wainui

250

Waitai, Joshua

250

Mareikura, Carson

250

Walker, Lisa

250

Mason, Iriaka Kate

250

Wanihi Wallace, Mereana

250

McCaskil, Michael

250

Whanarere, Ina

250

McCool, Kahu

250

Wiari, Haukura

250

Miller, Kiana

250

Winterburn, Shaylee

250

Mitchell, Shantala

250

Net Secondary Grants

17,750


Te Āti Hau Trust EDUCATION GRANTS LIST Other Recipients

Qualification

$

High Perfomance McGregor, Arihia

Bachelor of Social Work

1,000

Nicoll, Hamish

Bachelor of Engineering (Honours)

1,000

Rudolph, Joel

Bachelor of Arts (english and theatre)

1,000 3,000

Post Graduate Tamarua, Papatuanuku

Arts & MÄ ori Development

1,200

Gray, Kayla

Arts

1,300

Haunui, Kevin

KURA591

1,400

Gray, Elizabeth

Te Panekiretanga o Te Reo

1,500

Gray, Kayla

Postgraduate Diploma of Arts (Psychology)

1,500

Hutana-Te Aho, Sarah

Bachelor of Te Reo, Maori media and Communication

1,500

Jones, Mary

Masters of Maori & Pacific Devlopment

1,500

Miles, Cory

Masters of Sports and Leisure

1,500

Prince, Alicia

Postgraduate Diploma in Secondary Teaching

1,500

Ransfield, Ariti

Doctorate in Education

1,500

Tahuparae, James

Masters Matauranga Maoro

1,500

Williams, Ereti

BA (Social Policy) Honours - Post Grad

1,500

Williams, Tutakangahau

Masters of Indigenous Studies

1,500

Woon, Kylie

Masters in Applied Social Work

1,500 20,400

Agriculture Osborne, Johnathan

Bachelor of Agriculture

3,000

Williams, Stephanie

Agricultural Science

3,000 6,000

PHD Charlotte, Connell

Bachelor of Medicine and Surgery

3,000

Blackburn, Leila

College

2,000

Blackburn, Roimata

College

2,000

Butters, Kyle

Business Economics

2,000

Langford, Callum

Civil Engineering

2,000

Nagra, Kulwinder

Trade and Commerce

2,000

Reo Te Kooro, Longo

Business Administration

2,000

Terry, Tomika

Visual Communication Design

2,000

Hourigan, Paige

Business Degree

3,000

Hipango, Keepa

United Nations

4,000

Overseas

21,000

37


38


Ä€tihau-Whanganui Incorporation FINANCIAL STATEMENTS 2016

CONTENTS 40

Shareholding and Committee of Management Disclosures

41

Statement of Comprehensive Income

42

Statement of Changes in Equity

44

Balance Sheet

45

Statement of Cash Flows

46

Notes to and forming part of the Financial Statements

62

Auditors' Report

39


Ä€tihau-Whanganui Incorporation

SHAREHOLDING & COMMITTEE OF MANAGEMENT DISCLOSURES

For the Year Ended 30 June 2016 Shareholding Information

Greater than 5,000 shares Between 1,000 and 5,000 shares Between 500 and 1,000 shares Between 100 and 500 shares Between 5 and 100 shares Between 1 and 5 shares Under 1 share Totals

No. of Shareholders 12 238 305 1,436 3,905 1,507 1,166 8,569

0.15% 2.85% 3.70% 16.98% 46.06% 17.33% 12.93% 100%

No. of Shares Held

111,973.40 458,476.54 215,669.83 340,109.82 125,926.75 3,936.77 435.89 1,256,529

Committee of Management Shareholding CoM members have the following shares in the Incorporation registered in their names as at 30 Sept 2016. Che Wilson Jim Edmonds Keria Ponga Mavis Mullins (Chairperson) Te Tiwha Puketapu Toni Waho Whatarangi Murphy-Peehi

61.05 1,000.00 274.28 2,640.76

This schedule does not include shareholdings registered in the name of Trusts of which a CoM member may be a beneficiary.

Committee of Management Attendance of Meetings There were 11 monthly and 1 special meeting of the Committee during the year. Member's attendance was as follows: Che Wilson Don Robinson (Resigned 4 Dec 2015) Jim Edmonds Keria Ponga (appointed 4 Dec 2015) Mavis Mullins (Chairperson) Te Tiwha Puketapu Toni Waho Whatarangi Murphy-Peehi

Ordinary 9 3 9 5 11 11 6 9

Special 1 1 1 1 1 1

Committee of Management Remuneration Members were paid fees and travel allowances during the financial year ended 30 June 2016.

Che Wilson Don Robinson Jim Edmonds Keria Ponga Mavis Mullins (Chairperson) Te Tiwha Puketapu Toni Waho Whatarangi Murphy-Peehi

40

Fees $

25,000 18,300 25,000 12,500 45,000 25,000 25,000 25,000

Travel $ 6,200 2,307 284 6,872 1,665 1,900

Comments Fuel card provided

Vehicle provided

8.91% 36.49% 17.16% 27.07% 10.02% 0.32% 0.03% 100%


Ä€tihau-Whanganui Incorporation STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 30 June 2016 Note REVENUE Livestock

2

Milk

Actual 2016 $

Actual 2015 $

13,970,059

14,674,935

930,200

1,101,571

Wool

2,240,428

1,984,112

Apiary

1,490,563

552,704

18,631,250

18,313,322

315,691

35,108

73,483

76,872

394,593

75,394

Other gains and losses

3

Finance income

4

Rental income Other income TOTAL REVENUE

111,800

227,338

19,526,817

18,728,034

EXPENSES Farm working expenses

9,041,364

7,933,720

Personnel

3,149,924

3,158,641

2,425,314

3,488,948

Repairs and maintenance

789,027

1,236,836

Governance and shareholder expenses

559,107

553,495

Depreciation and loss on sale

5

Donations and scholarships Other operating expenses

6

TOTAL EXPENSES NET SURPLUS BEFORE FINANCE COSTS AND NON OPERATING REVALUATIONS

384,000

411,415

1,081,082

952,331

17,429,818

17,735,386

2,096,999

992,648

(1,774,741)

(1,886,784)

85,951

(693,319)

-

(262,000)

408,209

(1,849,455)

-

-

408,209

(1,849,455)

159,369

(147,112)

FINANCE COSTS Interest

REVALUATION GAINS / (LOSSES) Gain / (loss) from equity accounted investments

7

Gain / (loss) from revaluation of investment property NET SURPLUS / (DEFICIT) Income tax expense

8

NET SURPLUS / (DEFICIT) AFTER INCOME TAX OTHER COMPREHENSIVE INCOME Revaluation of Available-for Sale-Investments Revaluation of Emission Trading Units

3,509,562

1,342,884

-

(4,672,870)

TOTAL OTHER COMPREHENSIVE INCOME

3,668,931

(3,447,098)

TOTAL COMPREHENSIVE INCOME / (DEFICIT)

4,077,140

(5,326,553)

Revaluation of Property, Plant & Equipment

These statements should be read in conjunction with the accompanying notes.

41


Ä€tihau-Whanganui Incorporation STATEMENT OF CHANGES IN EQUITY For the Year Ended 30 June 2016 Capital Reserves $

BALANCE AT 1 JULY 2015

PTY Reval Reserves $

Retained Earnings $

ETU Reserve $

AFS Share Reserve $

30,098,776

72,260,903

19,679,641

2,683,094

211,466

Dividends Paid

-

-

(691,089)

-

-

Transactions with owners

-

-

(691,089)

-

-

Net Surplus after Income tax

-

-

408,209

-

-

-R  evaluation of Emission Trading Units

-

-

-

3,509,562

-

- Reclassification of AFS financial assets on Sale

-

-

1,805

-

(1,805)

- Revaluation of Available-for-Sale Financial Assets

-

-

-

-

159,369

Total Comprehensive Income for the Year

-

-

410,014

3,509,562

157,564

30,098,776

72,260,903

19,398,566

6,192,656

369,030

Capital Reserves $

22,489,376

PTY Reval Reserves $

84,543,173

Retained Earnings $

ETU Reserve $

AFS Share Reserve $

-

-

21,529,095

1,340,210

358,578

7,609,400

(7,609,400)

-

-

-

-

-

753,917

-

-

30,098,776

76,933,773

22,283,013

1,340,210

358,578

Dividends Paid

-

-

(753,917)

-

-

Transactions with owners

-

-

(753,917)

-

-

Net Deficit after Income tax

-

-

(1,849,455)

-

-

- Revaluation of Property, Plant & Equipment

-

(4,672,870)

-

-

-

- Revaluation of Emission Trading Units

-

-

-

1,342,884

-

-R  evaluation of Available-for-Sale Financial Assets

-

-

-

-

(147,112)

Total Comprehensive Income / (Deficit) for the Year

-

(4,672,870)

(1,849,455)

1,342,884

(147,112)

30,098,776

72,260,903

19,679,641

2,683,094

211,466

Other Comprehensive Income

BALANCE AT 30 JUNE 2016

BALANCE AT 1 JULY 2014 Restatement of reserve balances Reclass Investment Properties previously in Property, Plant & Equipment Remove Dividend Provision not approved prior year end (NZIAS37) RESTATED BALANCE AT 1 JULY 2014

-

-

-

Other Comprehensive Income

BALANCE AT 30 JUNE 2015

A description of the nature and purpose of each reserve is stated in note 27.

42

These statements should be read in conjunction with the accompanying notes.


Ä€tihau-Whanganui Incorporation STATEMENT OF CHANGES IN EQUITY (CONTINUED) For the Year Ended 30 June 2016 Retained Earnings prior to 2004

Retained Earnings after 2004

Share Valuation $

Livestock Reserve $

-

124,933,880

Dividends Paid

-

-

-

-

(691,089)

Transactions with owners

-

-

-

-

(691,089)

Net Surplus after Income tax

-

-

-

-

408,209

- Revaluation of Emission Trading Units

-

-

-

-

3,509,562

-R  eclassification of AFS financial assets on Sale

-

-

-

-

-

-R  evaluation of Available-for-Sale Financial Assets

-

-

-

-

159,369

Total Comprehensive Income for the Year

-

-

-

-

4,077,140

BALANCE AT 30 JUNE 2016

-

-

-

-

128,319,931

Retained Earnings prior to 2004

Retained Earnings after 2004

Share Valuation $

1,698,788

Livestock Reserve $

11,189,466

Total Equity $

130,260,432

BALANCE AT 1 JULY 2015

-

-

-

Total Equity $

Other Comprehensive Income

BALANCE AT 1 JULY 2014

10,980,338

Restatement of reserve balances

(640,709)

(10,980,338)

640,709

(1,698,788)

(11,189,466)

-

Reclass Investment Properties previously in Property, Plant & Equipment

-

-

-

-

-

Remove Dividend Provision not approved prior year end (NZIAS37)

-

-

-

-

753,917

RESTATED BALANCE AT 1 JULY 2014

-

-

-

-

131,014,350

Dividends Paid

-

-

-

-

(753,917)

Transactions with owners

-

-

-

-

(753,917)

Net Deficit after Income tax

-

-

-

-

(1,849,455)

- Revaluation of Property, Plant & Equipment

-

-

-

-

(4,672,870)

- Revaluation of Emission Trading Units

-

-

-

-

1,342,884

- Revaluation of Available-for-Sale Financial Assets

-

-

-

-

(147,112)

Total Comprehensive Income / (Deficit) for the Year

-

-

-

(5,326,553)

BALANCE AT 30 JUNE 2015

-

-

-

124,933,880

Other Comprehensive Income

-

These statements should be read in conjunction with the accompanying notes.

43


Ātihau-Whanganui Incorporation BALANCE SHEET As at 30 June 2016 Note

2016 $

2015 $

Cash and cash equivalents

140,432

814,504

Trade and other receivables

1,780,323

986,934

466,243

617,218

26,959,951

27,677,742

29,346,949

30,096,398

CURRENT ASSETS

Stock feed on hand Biological assets

9

TOTAL CURRENT ASSETS NON CURRENT ASSETS Property, Plant & Equipment

14

110,935,686

111,932,726

Investment property

10

7,871,400

7,871,400

Investments in associates and joint ventures

11

7,965,630

6,951,360

Share Investments

12

1,378,971

1,218,164

Intangibles

13

5,440,588

2,687,026

TOTAL NON CURRENT ASSETS

133,592,275

130,660,676

TOTAL ASSETS

162,939,224

160,757,074

1,087,490

1,136,664

303,999

270,089

40,000

-

257,255

211,219

-

478,485

CURRENT LIABILITIES Trade and other payables GST payable Te Āti Hau Trust Employee entitlements Provisions

15

Borrowings due within 12 months

16

TOTAL CURRENT LIABILITIES

-

8,850,000

1,688,744

10,946,457

NON CURRENT LIABILITIES Borrowings

16

28,891,208

20,962,967

Unclaimed Dividends

17

1,972,675

1,847,104

Te Hou Limited Partnership Deferred Capital Contribution

18

2,066,666

2,066,666

TOTAL NON CURRENT LIABILITIES

32,930,549

24,876,737

TOTAL LIABILITIES

34,619,293

35,823,194

128,319,931

124,933,880

NET ASSETS EQUITY Retained Earnings

27

19,398,566

19,679,641

Reserves

27

108,921,365

105,254,239

128,319,931

124,933,880

TOTAL EQUITY

Ātihau-Whanganui Incorporation's Committee of Management authorised the financial statements for issue on 28 October 2016. Signed for and on behalf of the Committee:

Mavis Mullins Chairperson 28 October 2016

44

Whatarangi Murphy-Peehi Chairman of the Audit and Risk Committee 28 October 2016 These statements should be read in conjunction with the accompanying notes.


Ä€tihau-Whanganui Incorporation STATEMENT OF CASH FLOWS For the Year Ended 30 June 2016 CASH FLOWS FROM OPERATING ACTIVITIES

2016 $

2015 $

18,856,943

19,419,901

73,483

70,998

-

1,304

18,930,426

19,492,203

14,374,263

14,569,910

1,774,741

1,892,118

Cash was provided from: Receipts from operations Interest & Dividends Received Income Tax Refunds Cash was disbursed to: Payments to suppliers and employees Interest Paid Net GST Paid

NET CASH FLOWS FROM OPERATING ACTIVITIES

117,806

-

16,266,810

16,462,028

2,663,616

3,030,175

179,458

136,864

179,458

136,864

1,471,883

1,986,449

CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds from disposals of Property, Plant & Equipment Cash was disbursed to: Acquisition of Property, Plant & Equipment Purchase of Investments

NET CASH FLOWS FROM INVESTING ACTIVITIES

173,758

54,998

1,645,641

2,041,447

(1,466,183)

(1,904,583)

-

607,590

-

607,590

CASH FLOWS FROM FINANCIAL ACTIVITIES Cash was provided from: Receipts from advance repayments

Cash was disbursed to: Repayment of Borrowings

921,759

50,000

Distributions & donations

949,746

898,395

1,871,505

948,395

(1,871,505)

(340,805)

NET CASH FLOWS FROM FINANCIAL ACTIVITIES

(674,072)

784,787

Cash at the Beginning of the Year

Net Increase (Decrease) in Cash Held

814,504

29,717

CASH AT THE END OF THE YEAR

140,432

814,504

These statements should be read in conjunction with the accompanying notes.

45


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

1. REPORTING ENTITY Ātihau-Whanganui Incorporation (AWHI) is registered under the Te Ture Whenua Maori Act 1993 and is incorporated in New Zealand.

Specific Accounting Policies The following specific accounting policies which materially affect the measurement of the Statement of Comprehensive Income and Balance Sheet have been applied:

Statement of Compliance and Basis of Preparation The financial statements for the Ātihau-Whanganui Incorporation have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP) under the requirements of the Financial Reporting Act 2013 and the Te Ture Whenua Māori Act 1993.

(a) Revenue Recognition

Ātihau-Whanganui Incorporation is a for-profit entity for the purposes of complying with NZ GAAP. AWHI qualifies for NZ IFRS (RDR) as it is not a large for-profit public sector entity. The Incorporation is eligible for and has elected to report in accordance with Tier 2 For Profit accounting standards and has applied disclosure concessions. The preparation of financial statements in conformity with NZ IFRS (RDR) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the incorporation's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant are disclosed at the end of the accounting policies. Basis of Preparation The financial statements have been prepared under the historical cost basis except for biological assets and some financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below. Historic cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. The information is presented in New Zealand dollars and all values are rounded to the nearest dollar. This is the first year of application of IFRS (NZ) RDR, previous accounts have been prepared in accordance with "old GAAP". The financial statements have been prepared using the significant accounting polices and measurement basis that are in effect at 30 June 2016 as summarised below. These were used throughout all periods presented in the financial statements, except where the Incorporation has applied certain accounting policies and exemptions upon transition to IFRS. 46

Revenue is measured at the fair value of the consideration received or receivable. Sales of livestock and other agricultural produce are recognised upon receipt by the customer and when the significant risks and rewards of ownership of the goods have been transferred. Rental income is recognised on a straight line basis over the term of the lease. Dividends received are recognised on receipt, net of nonrefundable tax credits. Milk proceeds are recognised in alignment with the processor Fonterra, recorded on a per dollar per kilogram of milk solid production basis. (b) Expenses Expenses are recognised on a functional basis in the period in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. (c) Trade Receivables Trade Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectable amounts. Individual debts that are known to be uncollectable are written off in the period that they are identified. Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. (d) Property, Plant & Equipment Items of property, plant and equipment, except for land, are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of property, plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present.


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. Land is revalued every three years to the most recent rateable value consistent with the Te Ture Whenua Maori Act 1993. Revaluations are reflected through Other Comprehensive Income and cumulative revaluations reflected in the PPE Revaluation Reserve. All other repairs and maintenance are recognised as expenses in the Statement of Comprehensive Income in the financial period in which they are incurred.

expense. Where there is a deferred tax asset an assessment is performed annually as to whether recognition is required. (g) Investments Investments in shares can be categorised as held-fortrading, held-to-maturity or available-for-sale. Shares held have been classified as available-for-sale. At balance date shares are revalued to fair value and any gains or losses reflected through other comprehensive income. (h) Intangible Assets (Emission Trading Units) Emission trading units have been purchased and earned off growing forestry.

Depreciation rates applied to classes of assets are:

Pre-1990 Forest Land AWHI land contains pre-1990 forest land subject to the provision of the NZ emissions trading scheme (ETS). If the land is deforested the owner is required to surrender NZ Emission Trading Units (NZU's) and any shortfall not held by the owner must be purchased for surrender. As there is no intention to change the land use (native forest) AWHI recognises them initially at cost and revalues them at reporting date through other comprehensive income and reserves.

Class Land Buildings Bridges Development Improvements Plant & Machinery Furniture & Fittings Motor Vehicles

Post-1989 Forest Land AWHI chose to enter the ETS for post-1989 forest land and earns NZUs as forests grow and carbon is stored in the forest from a 2008 baseline. NZUs are required to be returned to the Crown if the carbon stored in the specified area reduces. NZUs are initially recognised at cost and revalued to market value at reporting date. If the obligation to return units arises this obligation is recognised on the Statement of Financial Position.

The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold land, is depreciated on a straight-line or diminishing value basis over the asset's useful life to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

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

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

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the Statement of Comprehensive Income. (e) Investment Property Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost, including transaction costs. Revaluations are performed every three years to rateable value in accordance with the Te Ture Whenua Maori Act 1993. Gains and losses on revaluation are reflected through net surplus. (f) Income Tax The Incorporation is registered as a Maori Authority for income tax purposes. Income tax expense for the year comprises current income tax expense and deferred tax

Net proceeds relating to the trading of NZUs are reflected in Net Surplus. (i) Financial Instruments Financial assets and financial liabilities are recognised when AWHI becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through net surplus) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through net surplus are recognised immediately in net surplus.

47


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

Financial Assets Financial assets are classified into specified categories: financial assets "at fair value through net surplus", "held to maturity" investments, "available-for-sale" (AFS) financial assets and "loans and receivables". The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. All transactions are recognised (or derecognised) on a trade date basis. AWHI does not currently hold any held-for-trading financial assets or held-to-maturity investments. Available-for-sale financial assets are non-derivatives that are either designated as AFS or are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through net surplus. AFS financial assets held by AWHI include supplier shares which are issued at $1 and if surrendered are repaid at a $1. Where shares are able to be traded on the listed or unlisted exchange these are reflected at market value. They also hold shares for which there are value changes, including Fonterra shares. These are reflected at values advised by Fonterra. Dividends on AFS equity instruments are recognised in net surplus when AWHI's right to receive the dividends is established. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. Loans and receivables (includes trade and other receivables, and cash and cash equivalents) are measured at amortised cost using the effective interest rate, less an impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the effect of discounting is immaterial. Impairment of financial assets: Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one ore more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been effected. Impairments are assessed on an individual basis. Financial Liabilities Financial liabilities are classified as either financial liabilities at fair value through net surplus or other financial liabilities.

48

No financial liabilities are held at fair value through net surplus. Other financial liabilities (including borrowings and trade and other payables) are initially recorded at cost and subsequently measured at amortised cost using the effective interest method. Due to the short term nature of trade and other payables these are not discounted. Borrowings are subsequently measured at amortised cost using the effective interest method. All borrowing costs are recognised as an expense in the period they are incurred. (j) Provisions Provisions are recognised when the entity has an obligation which can be reliably measured at balance date as a result of a past event and it is probable that the entity will be required to settle the obligation. Where the entity expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Statement of Comprehensive Income net of any reimbursement. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the obligation at balance date. Movements in the best estimate are recorded in the Net Surplus (Statement of Comprehensive Income). (k) Development Expenditure Development costs are deferred where expenditure is carried out on AWHI's farming property over and above normal maintenance and future benefits are expected to exceed those costs. Deferred development costs are amortised over future periods in relation to expected future revenue in each period. Unamortised costs are reviewed at each balance date to determine the amount (if any) that is no longer recoverable, and any amount so identified is written off. Deferred development expenditure is reflected within property, plant and equipment. (l) Goods and Services Taxation (GST) All amounts are stated exclusive of goods and services tax (GST) except for accounts payable and accounts receivable which are stated inclusive of GST.


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

(m) Investments in Associates and Joint Ventures Associates are those entities over which AWHI is able to exert significant influence but which are not subsidiaries. A joint venture is an arrangement that AWHI controls jointly with one or more other investors and over which AWHI has rights to a share of the arrangement's net assets rather than direct rights to underlying assets and obligations for underlying liabilities. The Incorporation's investment in associates and joint ventures are accounted for using the equity method of accounting in the financial statements. Under the equity method, investments in associates and joint ventures are carried in the Balance Sheet at cost plus post-acquisition changes in the share of net assets of the associates and joint ventures.

to the accounting policies. These have been reflected in both the comparatives and the current year. Where this has impacted on equity further information is included in the Statement of Changes in Equity. (s) Critical Judgements in Applying Accounting Policies Valuation of Livestock AWHI values livestock using market values provided by PGG Wrightson Ltd. These market values reflect livestock of similar age, breed and genetic merit throughout New Zealand. Depreciation Rates Assessments are made of appropriate depreciation rates to be applied to property, plant and equipment based on useful lives and residual values of the assets.

The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise AWHI's share of the net surplus and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with AWHI's accounting policies. (n) Biological Assets Livestock are valued at their fair market value. Subsequent fair value changes are recognised in livestock revenue (Net Surplus / Statement of Comprehensive Income). (o) Dividends Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at balance date. (p) Employee Benefit The provision for employee entitlements is recognised as a liability in the Balance Sheet. These benefits include salaries, wages and annual leave. (q) Stock feed and Inventory Stock feed on hand and other inventories are stated at the lower of cost and net realisable value. (r) Changes in Accounting Policies and Disclosures The Incorporation has implemented the New Zealand equivalent to International Financial Reporting Standards RDR for the first time. This has necessitated several changes

49


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

2. LIVESTOCK REVENUE

Sales Sheep Cattle

2016 $

2015 $

8,904,382

9,415,705

6,846,344

5,493,236

15,750,726

14,908,941

Sheep

(386,700)

(395,024)

Cattle

(676,176)

(741,235)

-

(2,500)

(1,062,876)

(1,138,759)

(717,791)

904,753

13,970,059

14,674,935

2016 $

2015 $

Total Sales Purchases

Horses Total Purchases Increase / (Decrease) in Value Total Livestock Revenue

3. OTHER GAINS AND LOSSES

Gain on disposal of property, plant and equipment Gain on disposal of investments

37,136

50,689

1,805

-

Gain / (loss) on disposal of emission trading units

276,750

(15,581)

Total Gains and Losses

315,691

35,108

2016 $

2015 $

4. FINANCE INCOME

Dividends received Interest income Total Finance Income

50

67,058

69,900

6,425

6,971

73,483

76,871


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

5. DEPRECIATION & LOSS ON SALE

Depreciation Loss on sale of property, plant and equipment Total Depreciation & Loss on Sale

2016 $

2015 $

2,368,490

3,478,062

56,824

10,886

2,425,314

3,488,948

2016 $

2015 $

6. OTHER OPERATING EXPENSES

Audit Fees

30,285

28,620

Accountancy, legal and consultancy

581,509

549,773

Administration expenses

369,047

274,730

94,661

99,208

5,580

-

1,081,082

952,331

2016 $

2015 $

Project expenses Other operating expenses Total Operating Expenses

7. EQUITY ACCOUNTED INVESTMENTS

Share of surplus / (deficit) after tax

(750,503)

(693,475)

Revaluations and other movements

836,454

156

85,951

(693,319)

Total increase (decrease) in Equity Accounted Investments

51


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

8. INCOME TAX

a) Tax Expense

Net Surplus / (deficit) before income tax Tax at the New Zealand tax rate applicable to MÄ ori Authorities (17.5%)

2016 $

2015 $

408,209

(1,849,455)

71,437

(323,654)

206,001

77,845

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

- depreciation

268,845

354,744

(222,057)

69,293

(373,171)

(179,858)

48,946

57,880

Benefit of tax losses utilised

-

(56,250)

Net tax expense

-

-

2016 $

2015 $

12,670,292

12,670,292

2,075,743

1,822,812

- other temporary differences Permanent differences - livestock

- other permanent differences

b) Deferred tax liabilities and assets

Taxation losses available for offset against future income Deductible temporary differences not recognised in the Balance Sheet

Net deferred tax benefit including the benefit of the taxation losses above which have not been recognised (due to uncertainties about if and when losses will be utilised).

52


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

9. BIOLOGICAL ASSETS

Sheep

Balance at the beginning of the year Increase due to purchases Decrease due to sales Biological transformations Changes in fair value Total sheep on hand Cattle (Dairy & Beef)

Balance at the beginning of the year Increase due to purchases Decrease due to sales Biological transformations Changes in fair value Total cattle on hand Horses on hand Total Livestock

2016 $

2015 $

12,326,880

13,762,607

386,700

395,024

(8,904,382)

(9,415,705)

7,741,699

9,522,396

1,295,828

(1,937,442)

12,846,725

12,326,880

15,343,650

13,003,165

676,176

741,235

(6,846,344)

(5,493,236)

4,724,778

5,137,918

207,754

1,954,568

14,106,014

15,343,650

7,212

7,212

26,959,951

27,677,742

2016 $

2015 $

10. INVESTMENT PROPERTY

Balance at beginning of the year Revaluations Balance at end of the year

7,871,400

8,133,400

-

(262,000)

7,871,400

7,871,400

53


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

11. INVESTMENTS IN ASSOCIATES & JOINT VENTURES 2016 $

AWHI has the following investments in associates & joint ventures:

Papahau Forestry Partnership

Ownership & Voting

Basis

2015 $

50%

Valuation

1,645,136

799,107

Te Hou Limited Partnership

33.33%

Cost

6,320,494

6,152,253

Te Hou GP Limited

33.33%

Cost

-

-

7,965,630

6,951,360

799,107

802,335

(503)

(16,095)

10,078

12,867

Papahau forestry partnership and Te Hou GP Limited accounts are unaudited. Te Hou Limited Partnership is subject to audit, but audited figures are unavailable. The share of deficit in 2016 is based on management estimate. Adjustments will be reflected in the following years accounts. Papahau Forestry Partnership

Balance at the beginning of the year Share of surplus / (deficit)

Note 7

Capital contributions Revaluations

Note 7

Balance at the end of the year Te Hou Limited Partnership

Balance at the beginning of the year Share of surplus / (deficit)

Note 7

Capital contributions Revaluations

54

Note 7

836,454

-

1,645,136

799,107

6,152,253

6,829,633

(750,000)

(677,380)

918,241

-

-

-

Balance at the end of the year

6,320,494

6,152,253

Total Investments in Associates & Joint Ventures

7,965,630

6,951,360


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

12. SHARE INVESTMENTS 2016

Available for Sale Investments

Number of Shares

2015

Number of Shares

2016 $

2015 $

Ravensdown

500,000

500,000

500,000

500,000

Fontera Co-operative Group

148,021

145,842

871,844

700,041

-

-

7,127

18,122

1,378,971

1,218,163

2015

2016 $

2015 $

Other share investments Total Share Investments

13. INTANGIBLES (EMISSION TRADING UNITS) 2016

Number of Units

Number of Units 765,454

2,687,026

1,399,413

Additions

-

86,223

-

-

Disposals

(120,000) -

(425,165) -

(756,000)

(55,271)

3,509,562

1,342,884

306,512

426,512

5,440,588

2,687,026

Balance at beginning of the year

Revaluations Balance at end of the year

426,512

All units in 2016 are NZU's. The units disposed of in 2015 were the Incorporation's remaining Emission Reduction Units.

55


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 14. PROPERTY, PLANT & EQUIPMENT As at 30 June 2016 OPENING Acc Dep

Cost

Class

Freehold Land

87,119,700

Improvements

As at 30 June 2015

-

OPENING Acc Dep

Bk Value

Cost

87,119,700

91,216,700

-

91,216,700

4,934,360

719,288

4,215,072

4,885,256

661,142

4,224,114

14,063,786

1,919,062

12,144,724

14,495,054

1,863,753

12,631,301

Plant & Machinery

1,931,916

1,235,265

696,651

1,762,706

1,108,313

654,393

Motor Vehicles

1,999,766

901,218

1,098,548

1,751,513

891,049

860,464

425,361

260,798

164,563

331,295

244,460

86,835

13,411,068

6,493,467

18,965,628

10,445,054

8,520,574

18,446,699 111,932,725

133,408,152

15,213,771

118,194,381

-

-

-

-

18,446,699 111,932,725

133,408,152

15,213,771

118,194,381

Buildings & Bridges

Furniture & Fittings Development

19,904,533 130,379,422

Uncompleted Capital Works Total Property, Plant & Equipment

-

-

130,379,422

As at 30 June 2016 Class

Additions

Disposals

Freehold Land

-

-

Improvements

-

-

Buildings & Bridges

As at 30 June 2015

Revaluations

Depn & Amort

Additions

Disposals

Depn & Amort

Revaluations

-

-

-

-

(4,097,000)

-

-

47,891

19,033

-

27,737

57,612

87,399

-

-

57,282

172,873

-

(603,607)

55,843

Plant & Machinery

371,526

79,574

-

135,031

175,426

1,881

-

131.511

Motor Vehicles

719,988

119,572

-

305,789

584,237

95,180

-

250,744

73,660

-

-

47,240

94,065

-

-

16,338

-

-

2,966,014

97,061 (4,672,870)

3,478,062

Furniture & Fittings Development

Uncompleted Capital Works Total Property, Plant & Equipment

238,998

-

-

1,775,257

938,905

1,491,571

199,146

-

2,368,490

1,984,539

79,011

-

-

-

-

1,570,582

199,146

2,368,490

1,984,539

-

-

As at 30 June 2016 Class

Cost

-

-

97,061 (4,672,870)

3,478,062

As at 30 June 2015

CLOSING Acc Dep

Bk Value

Cost

CLOSING Acc Dep

Bk Value

Freehold Land

87,119,700

-

87,119,700

87,119,700

-

87,119,700

Improvements

4,934,360

767,179

4,167,181

4,934,360

719,288

4,215,072

14,151,185

1,976,344

12,174,841

14,063,786

1,919,062

12,144,724

Buildings & Bridges Plant & Machinery

2,223,868

1,370,296

853,572

1,931,916

1,235,265

696,651

Motor Vehicles

2,600,182

1,207,007

1,393,175

1,999,766

901,218

1,098,548

Furniture & Fittings Development

499,021

308,038

190,983

425,361

260,798

164,563

20,143,531

15,186,325

4,957,223

19,904,533

13,411,068

6,493,467

20,815,189 110,856,675

130,379,422

18,446,699

111,932,725

79,011

-

-

-

20,815,189 110,935,686

130,379,422

18,446,699

111,932,725

131,671,847 Uncompleted Capital Works Total Property, Plant & Equipment 56

Bk Value

79,011 131,750,858

-


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

15. PROVISIONS

Provision for storm damage

Balance at the beginning of the year Amounts charged to the provision Amounts used Balance at the end of the year Provision for future forestry expenses Balance at the beginning of the period Amounts used

2016 $

2015 $

438,492

-

-

438,492

(438,492)

-

-

438,492

39,993

39,993

(39,993)

-

Balance at the end of the year

-

39,993

Total Provisions

-

478,485

2016 $

2015 $

-

8,850,000

Non-Current

28,891,208

20,962,967

Total Borrowings

28,891,208

29,812,967

16. BORROWINGS

Secured Current

Secured liabilities and assets pledged as security The BNZ borrowings are secured by a registered first mortgage over specific land and a charge over all livestock owned by AWHI. Alienation of such Māori freehold land is subject to Te Ture Whenua Maori Act 1993 requirements. The carrying value of assets pledged as security for borrowings are:

Certificate WN7D/391 Livestock

116,290,345 117,844,363

Total pledged assets

143,250,296 145,522,105

26,959,951

27,677,742

57


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

17. UNCLAIMED DIVIDENDS

Balance at the beginning of the period Dividend declared Dividends paid Total Unclaimed Dividends

2016 Cents per share

2015 Cents per share

55

60

2016 $

2015 $

1,847,104

1,654,103

691,089

753,917

(565,518)

(560,916)

1,972,675

1,847,104

18. TE HOU LIMITED PARTNERSHIP DEFERRED CAPITAL CONTRIBUTIONS

Capital Contribution Liability

2016 $

2,066,666

2015 $

2,066,666

On 26 May 2014 AWHI entered into a Limited Partnership which operates an arable, dairy and dry stock operation with forestry. The agreement includes the requirement to contribute capital to the Limited Partnership. There is also an obligation to contribute development capital contributions which are contingent on cash requirements of the Limited Partnership.

58


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

19. FINANCIAL INSTRUMENTS

Financial Assets 2016

Amortised Cost $

Cost

Fair Value through Other Comp Inc $

$

Total $

Cash and cash equivalents

140,432

-

-

140,432

Trade and other receivables

1,518,210

-

-

1,518,210

-

-

1,378,971

1,378,971

1,658,642

-

1,378,971

3,037,613

Investment in shares Total Financial Assets

Financial Liabilities 2016 Trade and other payables

Amortised Cost $

Cost

Fair Value through Other Comp Inc $

$

Total $

882,081

-

-

882,081

2,066,666

-

-

2,066,666

Borrowings

28,891,208

-

-

28,891,208

Total Financial Liabilities

31,839,955

-

-

31,839,955

Te Hou LP deferred contribution

Financial Assets 2015

Amortised Cost $

Cost

Fair Value through Other Comp Inc $

$

$

Cash and cash equivalents

814,504

Trade and other receivables

853,096

-

-

853,096

-

-

1,218,163

1,218,163

1,667,600

-

1,218,163

2,885,763

Investment in shares Total Financial Assets

Financial Liabilities 2015 Trade and other payables Te Hou LP deferred contribution

Amortised Cost $

960,245

-

Total

Cost

-

Fair Value through Other Comp Inc $

$

-

814,504

Total $

-

960,245

2,066,666

-

-

2,066,666

Borrowings

29,812,967

-

-

29,812,967

Total Financial Liabilities

32,839,878

-

-

32,839,878

59


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 20. MAORI AUTHORITY CREDIT ACCOUNT 2016 $

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

2015 $

370,516

369,079

9,535,332

10,226,421

2016 $

2015 $

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

21. RELATED PARTIES

a) Te Āti Hau Trust

Donations during the year

380,000

405,215

Year end Payable

40,000

-

Contract Fencing Services

-

23,100

2016 $

2015 $

1,445,829

1,224,789

2016 $

2015 $

AWHI is the settlor of Te Āti Hau Trust and appoints three of the trustees

b) Jim Edmonds (Committee of Management) Key Management Personnel Compensation

Key management of the Incorporation are the members of the Committee of Management, the Chief Executive Office, Farm Operations Manager and the Station Managers. Total Key Management Personnel remuneration

22. CONTINGENT LIABILITIES

a) Arising from the Emissions Trading Scheme

There is a Contingent Liability relating to the Carbon Account Record which represents the total number of units which are required to be surrendered when or if land is withdrawn from the ETS. Management have no plans to change land use at this time which would trigger such a liability. The forest on land is insured against forest fire.

3,773,328

3,773,328

381,788 272,710 654,498

918,241 381,788 272,710 1,572,739

b) Arising from interest in a Joint Venture

The development liability to the Te Hou Limited Partnership is contingent on the future cash requirements of the Limited Partnership. Due 30/06/2016 Due 30/06/2017 Due 30/06/2018 Total 60


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 23. SUBSEQUENT EVENTS There have been no subsequent events after year end (2015: Nil). 24. OPERATING LEASE ARRANGEMENTS

Operating leases relate to leases of offices and land. Operating lease expense (included in Farm working and Other operating expenses) Non-cancellable operating lease commitments Not later than 1 year

Later than 1 year and less than 5 years Later then 5 years

2016 $

2015 $

59,477

35,268

70,818

28,393

212,520

34,870

12,658

-

295,996

63,263

2016 $

2015 $

2016 Number

2015 Number

25. COMMITMENTS FOR EXPENDITURE

Commitments for the aquisition of property, plant and equipment

440,382

-

26. CAPITAL

Number of shares (fully paid)

1,256,529

1,256,529

These shares have no par value and share equally in dividends paid. 27. RESERVES Retained Earnings Retained Earnings comprise the incorporations net profits less dividends paid. Capital Reserves Capital Reserves represent realised capital profits predominantly arising from Crown grants. Property Revaluation Reserve The property reserve arises on the revaluation of land and buildings. When revalued land and buildings are sold, the proportion of the properties revaluation reserve that relates to the asset is transferred to capital reserves. ETU Reserve The Emissions Trading Units Reserve represents revaluations of Emission Trading Units. When revalued ETUs are sold, the proportion of the reserve that relate to those units are transferred to retained earnings. AFS Share Reserve The available for sale share reserve represents unrealised revaluations of share investments. Share Revaluation Reserve The share revaluation reserve at the end of 2014 was divided into the ETU and AFS share reserves. Livestock Reserve The livestock revaluation reserve at the end of 2014 represented cumulative livestock price revaluations. This reserve is now included within Retained Earnings. 61


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 INDEPENDENT  AUDITOR’S  REPORT   TO  THE  MEMBERS  OF  ATIHAU  WHANGANUI  INCORPORATION   Report  on  the  Financial  Statements   We  have  audited  the  financial  statements  of  Atihau  Whanganui  Incorporation  on  pages  41  to  61,  which   comprise  the  Balance  Sheet  as  at  30  June  2016,  the  Statement  of  Comprehensive  Income,  Statement  of   Changes  in  Equity  and  Statement  of  Cash  Flows  for  the  year  then  ended,  and  a  summary  of  significant   accounting  policies  and  other  explanatory  information.     Committee’s  Responsibility  for  the  Financial  Statements   The  Committee  of  Management  is  responsible  on  behalf  of  the  entity  for  the  preparation  of  financial   statements  that  give  a  true  and  fair  view  in  accordance  with  New  Zealand  Equivalents  to  International   Financial  Reporting  Standards  Reduced  Disclosure  Regime  (“NZ  IFRS  RDR”)  and  for  such  internal  control  as   the  Committee  of  Management  determine  is  necessary  to  enable  the  preparation  of  financial  statements   that  are  free  from  material  misstatement,  whether  due  to  fraud  or  error.     Auditor’s  Responsibility   Our  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  our  audit.  We  conducted   our  audit  in  accordance  with  International  Standards  on  Auditing  (New  Zealand).  Those  standards  require   that  we  comply  with  ethical  requirements  and  plan  and  perform  the  audit  to  obtain  reasonable  assurance   about  whether  the  financial  statements  are  free  from  material  misstatement.     An  audit  involves  performing  procedures  to  obtain  audit  evidence  about  the  amounts  and  disclosures  in  the   financial  statements.  The  procedures  selected  depend  on  the  auditor’s  judgment,  including  the  assessment   of  the  risks  of  material  misstatement  of  the  financial  statements,  whether  due  to  fraud  or  error.  In  making   those  risk  assessments,  the  auditor  considers  internal  control  relevant  to  the  entity’s  preparation  of   financial  statements  that  give  a  true  and  fair  view  in  order  to  design  audit  procedures  that  are  appropriate   in  the  circumstances,  but  not  for  the  purpose  of  expressing  an  opinion  on  the  effectiveness  of  the  entity’s   internal  control.    An  audit  also  includes  evaluating  the  appropriateness  of  accounting  policies  used  and  the   reasonableness  of  accounting  estimates,  as  well  as  evaluating  the  overall  presentation  of  the  financial   statements.     We  believe  that  the  audit  evidence  we  have  obtained  is  sufficient  and  appropriate  to  provide  a  basis  for  our   qualified  audit  opinion.     Other  than  in  our  capacity  as  auditor  we  have  no  relationship  with,  or  interests  in,  Atihau  Whanganui   Incorporation.     Basis  for  Qualified  Opinion   Atihau  Whanganui  Incorporation’s  joint  venture  investment  in  Te  Hou  Limited  Partnership  is  accounted  for   using  the  equity  method  of  accounting  and  is  carried  at  $6,320,494  on  the  Balance  Sheet  as  at  30  June  2016.     Atihau  Whanganui  Incorporation’s  share  of  Te  Hou  Limited  Partnership’s  net  loss  of  $750,000  is  included  in   Atihau  Whanganui  Incorporation’s  income  for  the  year  then  ended.    We  were  unable  to  obtain  sufficient   appropriate  audit  evidence  about  the  carrying  amount  of  Atihau  Whanganui  Incorporation’s  investment  in   Te  Hou  Limited  Partnership  as  at  30  June  2016  and  Atihau  Whanganui  Incorporation’s  share  of  Te  Hou  Limited   Partnership’s  net  loss  for  the  year  then  ended  because  audited  results  were  not  available  for  inclusion  and   hence  a  management  estimate  has  been  recorded.    Consequently,  we  were  unable  to  determine  whether  any   adjustment  to  these  amounts  was  necessary.    

62


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

          Atihau  Whanganui  Incorporation’s  Land  and  Investment  Properties  are  revalued  every  3  years  at  Rateable   Value  in  accordance  with  the  Te  Ture  Whenua  Maori  Act  1993.    This  constitutes  a  departure  from  New   Zealand  Equivalents  to  International  Financial  Reporting  Standards  Reduced  Disclosure  Regime  (“NZ  IFRS   RDR”)  which  requires  Land  and  Investment  Properties  to  be  revalued  to  fair  value.    Consequently,  we  were   unable  to  determine  whether  any  adjustment  to  these  amounts  was  necessary.     Qualified  Opinion   In  our  opinion,  except  for  the  possible  effects  of  the  matters  described  in  the  Basis  for  Qualified  Opinion   paragraph,  the  financial  statements  on  pages  41  to  61,  give  a  true  and  fair  view  of  the  financial  position  of   Atihau  Whanganui  Incorporation  as  at  30  June  2016,  and  its  financial  performance  and  cash  flows  for  the   year  then  ended  in  accordance  with  New  Zealand  Equivalents  to  International  Financial  Reporting   Standards  Reduced  Disclosure  Regime  (“NZ  IFRS  RDR”).     Report  on  Other  Legal  and  Regulatory  Requirements   • The  Share  Register  and  Index  of  Shareholders  required  by  Section  263  of  the  Te  Ture  Whenua   Maori  Act  1993,  has  been  compiled  and  correctly  kept  by  the  Incorporation.     • The  Incorporation’s  assets  have  been  recorded  at  estimated  current  market  value  in  the  financial   statements  with  the  latest  Rateable  Values  used  as  an  estimate  of  current  market  value  for  land   and  Investment  Properties.  Whilst  this  is  a  departure  from  New  Zealand  Equivalents  to   International  Financial  Reporting  Standards  Reduced  Disclosure  Regime  (“NZ  IFRS  RDR”),  it  is   consistent  with  Section  276A(3)(c)  of  the  Te  Ture  Whenua  Maori  Act  1993.                   Spooner  Hood  &  Redpath  Ltd   Chartered  Accountants   Whanganui,  New  Zealand   28  October  2016  

                   

63


64


Te Āti Hau Trust FINANCIAL STATEMENTS 2016

CONTENTS 66

Entity Information

68

Statement of Service Performance

69

Statement of Financial Performance

70

Statement of Financial Position

71

Statement of Cash Flows

72

Notes to and forming part of the Performance Report

76

Auditors' Report

65


Te Āti Hau Trust ENTITY INFORMATION As at 30 June 2016

Te Āti Hau Trust is a Discretionary Trust, established by a trust deed dated 23 April 2009 and registered under the Charities Act 2005.

Entity's Purpose or Mission

The support of the educational and cultural aims of the Māori people in the District. Operations are governed by its Trust Deed that aligns to and supports the requirements of the Charities Act.

Address

c/- Balance Chartered Accountants 16 Bell Street WHANGANUI 4500

Entity Structure

Te Āti Hau Trust is a Charitable Trust incorporated under the Charitable Trusts Act 1957 and is also registered under the Charities Act 2005.

Trustees

Members of Ātihau Whanganui Incorporation: Tiwha Puketapu (Chairperson) Jim Edmonds Keria Ponga Independent members appointed: Anton McKay Don Robinson (ceased 30 June 2016) Kapitorina Hall (Appointed 1 July 2016)

Main Source of Cash and Resources

66

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


Te Āti Hau Trust ENTITY INFORMATION As at 30 June 2016

Beneficiary

Ātihau Shareholders

GST

Not Registered

Accountants

Balance Chartered Accountants Limited 16 Bell Street Whanganui

Auditor

Spooner Hood & Redpath Limited Chartered Accountants Whanganui

Bankers

Bank of New Zealand Whanganui

Solicitors

Horsley Christie Whanganui

IRD Number

102-612-817

Registered Charity Number

CC41172

67


Te Āti Hau Trust STATEMENT OF SERVICE PERFORMANCE For the Year Ended 30 June 2016 Description of Trust Outcomes Te Āti Hau Trust was established in 2009 as a charitable arm of Ātihau Whanganui Incorporation to apply funding for charitable, cultural, philanthropic, educational, recreational and other purposes, being purposes beneficial principally to the Shareholders and Stakeholders. Those grants may include Maori cultural development and support, educational and vocational development and support, social development and support, marae development and support, health and welfare development and support, and the fostering of strategic alliances with persons promoting or assisting with any of these objects. The grants are made under the following guiding principles: Matauranga Education Kotahitanga Unity of purpose Mānaakitanga Nurture and reciprocate Whanaungatanga Collaboration Rangatiratanga Leadership Wairuatanga Spirituality Mana Whenua Responsibility to the land and the people Kaitiakitanga Active stewardship Mana Tupuna Legitimacy Te Reo Identity Te Āti Hau Trust budget for grants for 2015/16 was $280,000 (2014/15: $275,000)

Te Āti Hau Trust budget for tangihanga tent koha was $20,000 (2014/15: $20,000)

General Grants Sport Art and Travel

Grants Made 2016 Number

Actual 2016 $

Grants Made 2015 Number

Actual 2015 $

24

11,445

19

12,800

Cultural

7

14,500

18

32,125

Kaumatua Assistance

0

-

5

4,471

Marae

1

2,500

3

30,000

32

28,445

45

79,396

129

88,800

165

102,905

0

-

7

2,450

Education Grants Tertiary - undergraduate full time Tertiary - undergraduate part time No Fees

0

-

8

1,200

Medical

48

40,850

16

15,300

Secondary School - Year 10 and 11

71

17,750

92

23,000

High Performance

3

3,000

12

11,100

14

20,400

18

25,700

Agriculture

2

6,000

2

3,000

PHD

1

3,000

2

6,000

Post Graduate

Overseas Grants

Tangihanga tent

68

9

21,000

2

4,000

277

200,800

324

194,655

42

12,600

57

17,100

These statements should be read in conjunction with the accompanying notes.


Te Āti Hau Trust STATEMENT OF FINANCIAL PERFORMANCE For the Year Ended 30 June 2016

Note

Actual 2016 $

Actual 2015 $

Donations, fundraising and other similar revenue

2

380,000

380,000

Interest, dividends and other investment revenue

3

103

18,461

380,103

398,461

Revenue

$

Total Revenue Less Expenses

Costs related to providing goods or services

4

65,151

48,973

Grants and donations

5

241,884

362,688

Volunteer and employee related costs

6

13,987

13,289

Other Expenses

7

5,649

7,032

Total Expenses

326,671

431,982

Surplus/(Deficit)

53,432

(33,521)

These statements should be read in conjunction with the accompanying notes.

69


Te Āti Hau Trust STATEMENT OF FINANCIAL POSITION As at 30 June 2016

Note

2016 $

2015 $

Accumulated Surpluses

76,516

23,084

Total Accumulated Funds

76,516

23,084

43,516

17,704

Accumulated Funds

Represented by: Current Assets

Bank of New Zealand Bank of New Zealand - Call Account - 25

40

51,445

Debtors

40,100

16

Total Current Assets

83,656

69,165

1,719

3,390

85,375

72,555

Current Liabilities Creditors Employee/Trustee Costs Payable

8,859

46,996

-

2,475

Total Liabilities

8,859

49,471

76,516

23,084

Non Current Assets Property, Plant & Equipment

8

Total Assets

Net Assets

Signed for and on behalf of the Trust:

Brendon Te Tiwha Puketapu Chairperson 28 October 2016

70

Keria Ponga Trustee 28 October 2016

These statements should be read in conjunction with the accompanying notes.


Te Āti Hau Trust STATEMENT OF CASH FLOWS For the Year Ended 30 June 2016

Note

Cash Flows from Operating Activities Cash was received from:

Donations and other similar revenue Interest, dividends and other investments Cash was applied to: Payments to suppliers

Donations and grants paid Employee and Volunteer Costs Other Expenses

Net Cash Flows from Operating Activities

2016 $

2015 $

340,000

405,215

119

29,246

340,119

434,461

67,575

158,848

277,697

268,338

16,462

13,256

3,978

3,979

365,712

444,421

(25,593)

(9,960)

-

4,600

Cash Flows from Investing and Financing Activities Cash was received from:

Ātihau Whanganui Incorporation (Debtors) Term Deposit Maturity Cash was applied to:

Ātihau Whanganui Incorporation Unclaimed Dividends

Net Cash Flows from Investing and Financing Activities Net Increase / (Decrease in Cash) Opening Cash Closing Cash

This is represented by: Cash & Bank Balances

-

634,747

-

639,347

-

607,590

-

607,590

-

31,757

(25,593)

21,797

69,149

47,352

43,556

69,149

43,556

69,149

These statements should be read in conjunction with the accompanying notes.

71


TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016 1. STATEMENT OF ACCOUNTING POLICIES Statement of Compliance and Basis of Preparation Te Āti Hau Trust is eligible to apply Tier 3 PBE Accounting Standards : PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit), on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000. The trust has elected to report in accordance with PBE SFR-A (NFP). All transactions in the Performance Report are reported using the accrual basis of accounting. The accounting principles recognised as appropriate for the measurement and reporting of the Statement of Financial Performance and Statement of Financial Position on a historical cost basis are followed by the trust, unless otherwise stated in the Specific Accounting Policies. The information is presented in New Zealand dollars. All values are rounded to the nearest $. The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future.

SPECIFIC ACCOUNTING POLICIES The following specific accounting policies which materially affect the measurement of the Statement of Financial Performance and Statement of Financial Position have been applied: a) Revenue Recognition Grant income is received annually as a result of an agreed tribal purposes grant. Any outstanding grant income not utilised by 30 June is not returnable. Interest received is recognised as interest accrues, gross of refundable tax credits received. b) Expenses Expenses have been classified on their business function. c) Trade Receivables Trade Receivables are recognised at estimated realisable value. d) Income Tax The Trust has charitable status and is exempt from income tax. e) Property, Plant & Equipment All other repairs and maintenance are recognised as expenses in the Statement of Financial Performance in the financial period in which they are incurred.

72

Depreciation has been calculated using the maximum rates permitted by the Income Tax Act 2007. The following estimated depreciation rates/useful lives have been used: Office Equipment

13 - 50%

Gains and losses on disposal of fixed assets are taken into account in determining the net result for the year. f) Goods and Services Taxation (GST) The amounts recorded in the performance report are inclusive of GST (if any). The trust is not registered for GST. g) Changes in Accounting Policies The charitable trust transitioned on 1 July 2014 from preparation of general purpose financial reporting in accordance with New Zealand generally accepted accounting practuce (NZ GAAP) to general purpose financial reporting in accordance with PBE SFR-A (NFP). The transition had minimal impact on the accounting policies of the trust. All accounting policies were applied consistently during the year.


TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016 2. DONATIONS, FUNDRAISING AND OTHER SIMILAR REVENUE 2016 $

2015 $

AWHI Tribal Purposes Distributions

380,000

380,000

Total Donations, fundraising and other similar revenue

380,000

380,000

2016 $

2015 $

3. INTEREST, DIVIDENDS AND OTHER INVESTMENT REVENUE Interest Received - Gross Total Interest, dividends and other investment revenue

103

18,461

103

18,461

2016 $

2015 $

4. COSTS RELATED TO PROVIDING GOODS OR SERVICES Accountancy Fees Administration (Grant Administration) Bank Fees & Charges

8,295

8,382

41,013

17,129

45

40

Charities Commission

51

51

Committee Expenses

1,868

3,014

-

4,240

Database Expenses Grants Administrator Expenses

3,002

6,545

Secretarial Fees

10,877

9,572

Total Costs related to providing goods or services

65,151

48,973

2016 $

2015 $

5. GRANTS AND DONATIONS Awhiwhenua Training Project Housing Insulation Project

39

42,449

-

29,088

Tangihanga Koha

12,600

17,100

Sport, Art & Travel

11,445

12,800

Cultural

14,500

32,125

-

4,471

Kaumatua Assistance Marae

2,500

30,000

88,800

102,905

Tertiary Part Time

-

2,450

No Fees

-

1,200

17,750

23,000

3,000

11,100

40,850

15,300

3,000

6,000

21,000

4,000

Tertiary Full Time

Secondary Yr 10 & Yr 11 High Performance Medical PHD Overseas Agriculture Post Graduate Total Grants and Donations

6,000

3,000

20,400

25,700

241,884

362,688

73


TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

6. VOLUNTEER AND EMPLOYEE RELATED COSTS 2016 $

2015 $

Trustee Fees

13,987

13,289

Total Costs related to Volunteer and Employee

13,987

13,289

2016 $

2015 $

7. OTHER EXPENSES Audit Fees

3,979

3,979

Depreciation

1,429

3,053

241

-

5,649

7,032

Loss on Sale of Fixed Assets Total Costs related to Other Expenses

8. PROPERTY, PLANT & EQUIPMENT

Property, Plant & Equipment 2016 Office Equipment

Apple iPads 32G (2) GDPro Database Software Filing Cabinet

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

Closing Carrying Amount $

241

-

241

-

1,915

-

958

957

392

-

51

341

HP Laptop case and configuration

420

-

210

210

Microsoft Office and Remote User Networks

421

-

210

211

3,389

-

1,670

1,719

3,389

-

1,670

1,719

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

Closing Carrying Amount $

Total

Property, Plant & Equipment 2015 Office Equipment

Apple iPads 32G (2) GDPro Database Software

Opening Carrying Amount $

481

-

240

241

3,829

-

1,914

1,915

Filing Cabinet

451

-

59

392

HP Laptop case and configuration

841

-

420

421

Microsoft Office and Remote User Networks

Total 74

Opening Carrying Amount $

841

-

420

421

6,443

-

3,053

3,390

6,443

-

3,053

3,390


TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

9. RELATED PARTY INFORMATION

Related party matters arise with respect to Ātihau Whanganui Incorporation ("AWHI") in that under the terms of the Trust Deed three appointed trustees are also members of the AWHI Committee of Management and the Incorporation is the settlor of the Trust. Annual grants are received from AWHI, and AWHI previously advanced unclaimed dividends to the Trust. Don Robinson, a trustee, provides catering services to the Trust for meetings and collaboration hui. During the year he provided services to the Trust to the value of $542 (2015: $125). From time to time Trustees have and disclose interests in, or a relationship with individual applicants and/or grantee organisations and abstain from those decisions.

10. TRIBAL PURPOSES

Ātihau Whanganui Incorporation annually distribute funds to the Trust which is used to distribute for charitable purposes. During the year $380,000 was granted.

11. COMMITMENTS

The trust has no commitments as at 30 June 2016, (2015 Nil).

12. CONTINGENT LIABILITIES AND GUARANTEES

The charitable trust has no contingent liabilities and no guarantees as at 30 June 2016. (2015: Contingent Liabilities Nil. Guarantees Nil.)

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

14. ACCUMULATED FUNDS 2016 $

2015 $

Balance at beginning of the year

22,984

56,505

Surplus / (deficit) for the year

53,432

(33,521)

Balance at the end of the year

76,416

22,984

Total Accumulated Funds

76,516

23,084

Trust Capital Other Accumulated Funds

100

100

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TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016 INDEPENDENT AUDITOR’S  REPORT   TO  THE  TRUSTEES  OF  TE  ATI  HAU  TRUST    

Report on  the  Financial  Statements     We  have  audited  the  Performance  Report  of  Te  Ati  Hau  Trust  on    pages  66  to  75,  which  comprise,   the  Statement  of  Financial  Position  as  at  30  June  2016,  the  Statement  of  Financial  Performance,   Statement  of  Service  Performance  and  Statement  of  Cash  Flows  for  the  year  then  ended,  and  a   summary  of  significant  accounting  policies  and  other  explanatory  information.     Board’s  Responsibilities  for  the  Financial  Statements   The  Board  are  responsible  on  behalf  of  the  entity  for  the  preparation  of  financial  statements  that   give  a  true  and  fair  view  of  matters  to  which  they  relate  and  in  accordance  with  Public  Benefit   Entity  Simple  Format  Reporting  –  Accrual  (Not-­‐For-­‐Profit)  PBE  SFR-­‐A  (NFP)  Standards  and  for  such   internal  controls  as  the  Board  determine  are  necessary  to  enable  the  preparation  of  financial   statements  that  are  free  from  material  misstatement,  whether  due  to  fraud  or  error.     Auditor’s  Responsibilities     Our  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  our  audit.  We   conducted  our  audit  in  accordance  with  International  Standards  on  Auditing  (New  Zealand).  Those   standards  require  that  we  comply  with  ethical  requirements  and  plan  and  perform  the  audit  to   obtain  reasonable  assurance  about  whether  the  financial  statements  are  free  from  material   misstatements.     An  audit  involves  performing  procedures  to  obtain  audit  evidence  about  the  amounts  and   disclosures  in  the  financial  statements.  The  procedures  selected  depend  on  the  auditor’s   judgement,  including  the  assessment  of  risks  of  material  misstatement  of  the  financial  statements,   whether  due  to  fraud  or  error.  In  making  those  risk  assessments,  the  auditor  considers  internal   control  relevant  to  the  entity’s  preparation  of  financial  statements  that  give  a  true  and  fair  view  of   the  matters  to  which  they  relate  in  order  to  design  audit  procedures  that  are  appropriate  in  the   circumstances,  but  not  for  the  purpose  of  expressing  an  opinion  on  the  effectiveness  of  the   entity’s  internal  control.  An  audit  also  includes  evaluating  the  appropriateness  of  accounting   policies  used  and  the  reasonableness  of  accounting  estimates  made  by  management,  as  well  as   evaluating  the  presentation  of  the  financial  statements.     We  believe  that  the  audit  evidence  we  have  obtained  is  sufficient  and  appropriate  to  provide  a   basis  for  our  audit  opinion.     Other  than  in  our  capacity  as  auditor,  we  have  no  relationship  with,  or  interests  in,  Te  Ati  Hau   Trust  

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TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016   Opinion     In  our  opinion,  the  financial  statements  present  fairly,  in  all  material  respects,  the  Financial   position  of  Te  Ati  Hau  Trust  as  at  30  June  2016,  and  its  Financial  performance  and  cash  flows  for   the  year  then  ended  in  accordance  with  Public  Benefit  Entity  Standards.  

Spooner Hood  &  Redpath  Ltd   Chartered  Accountants   Whanganui,  New  Zealand   28  October  2016  

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TE ĀTI HAU TRUST Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT 2015 AGM SUMMARISED FOR THE YEAR ENDED 30 JUNE 2016MINUTES

Held at Whanganui Racecourse, 4 December 2015 Karakia:

Nohi Wallace

COMMITTEE OF MANAGEMENT REPORT

Mihi:

Toni Waho

• The current Committee of Management introduced themselves.

Written Apologies: Che Wilson Jim Edmonds

• The Chair noted her position on Taratahi in regards to the recent publicity. Audit and Risk

Heemi Stevenson

Sharon Smeaton

Identified skill gaps were identified on the Board Audit and Risk committee resulting in the appointment of Laurissa Cooney as an Independent Member.

Martha Mariu

Edward Tamou

Lana Bishop

Te Aroha Henry

Associate Director

Tirira Sosich

Gerald Haami

Sandra Thocolich

Bella Hansen

Rachel Whitehead - Ashcroft Whānau Trust

Board and Written Apologies were read and received. Moved Novena McGuckin / Seconded Jacquie Jeffrey (carried). The Chair addressed the shareholders: • Housekeeping matters • Kaumtua grant (Agenda item 11) – agreed to be dealt with by show of hands • Proxy forms, high percentage invalid due to appointing Committee of Management • ntroduced iStudios requesting permission for photos for the AWHI magazine. Committee of Management Elections The Chair invited the candidates to address the shareholders • Shar Amner • Keria Ponga • Te Tiwha (Brendon) Puketapu A call for Poll Voting (excluding kaumātua grant) was made by Debbie Te Riaki This motion was seconded by: • Cerise McMasters • Bobby Gray • Dana Blackburn • Novena McGuckin

• The Chair addressed the shareholders regarding the Associate Director programme. • The high calibre of applicants was noted. Francene Wineti was successfully appointed. Awhiwhenua • Awhiwenua training programme had its beginning with Te Āti Hau Trust, now transitioning to AWHI and is business as usual. Financial Service Provision • Balance Chartered Accountants aligned with Deloittes to offer enhanced services. • Hilton Joll of Deloittes was introduced to the shareholders. Diversification • Resilience through diversification – a current and predicted vision was shared with the shareholders Communication Strategy • AWHI magazine had 800+ reads and 3,000 more viewing online Don Robinson • Don Robinson, who is retiring from the AWHI board, addressed the shareholders, and spoke of his time as a board member. CEO REPORT The Chair acknowledged CEO Andrew Beijeman’s recent MBA (Business Management) graduation. Andrew Beijeman addressed the shareholders. Key Shareholder Issues • Number of uri employed by AWHI: - 45 people employed; approximately 40% are uri. • Responses on the following: - Futuristic science such as beef grown in laboratories and the effect on AWHI. - All Te Hou calves receive colostrum. - AWHI does not use genetically modified seed. - Ngā Whenua Rāhui kawenata explanation - Whānau hapū interest in honey strategy

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TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

FINANCIAL REPORT

TE ĀTI HAU TRUST

Glenn Brown of Balance Chartered Accountants presented the audited financial statements for 2014/2015

Toni Waho, the outgoing Chair, addressed the shareholders; trustees introduced.

Key Shareholder Issues

Grants

• Increased interest cost attributed to the Te Hou investment

• The Trust Chair spoke about the grants policy.

• Loans are offset against livestock, shares and Te Hou

• Noted the fraudulent application received and investigated by Department of Internal Affairs.

• When will Balance give consideration to provide a financial scholarship? • Hilton Joll of Deloitte responded positively CEO and Committee of Management Reports received.

Scholarships • Ohotu scholars: Jacob Robinson, Josh Firmin, Jeanette Trego, Kendrix Kereopa –Woon.

Moved Kataraina Millin / Seconded Te Uta Hibbard (carried).

• Robin Murphy-Peehi scholarship is now open as Hinurewa Poutu has completed her studies.

Finance Report received.

• Ravensdown Scholarship: Sam O’Donnell will complete in 2015 and a new applicant for 2016 will be sought.

Moved Novena McGuckin / Seconded Olive Hawira (Carried). Recommendation to adopt the recommendation of the Committee of Management: That a dividend of 55 cents a share be paid in December 2015 pursuant to section 259 (1) (c) of Te Ture Whenua Maori Act 1993. Moved Te Uta Hibbard / seconded Dana Blackburn (Carried). Recommendation that Sewell Wilson be automatically reappointed as auditor pursuant to section 277 (2) of Te Ture Whenua Maori Act 1993. Recommendation to appoint Balance Chartered Accountants Limited as Share Valuer. Moved Fleur Rogers / Seconded Geraldine Taurerewa (carried). Recommended that the kaumātua grant be approved by show of hands. Moved Kataraina Millin / Seconded Olive Hawira (carried). • The Chair noted the Board’s intention to cease cash grants and pay this by direct credit once qualifying requirements are verified. Recommendation to grant Te Āti Hau Trust $380,000 for the 2015 / 2016 financial year for its charitable purposes.

Trust Chair Te Tiwha Puketapu appointed Chair of Te Āti Hau Trust by Ātihau, following the retirement of Toni Waho, and Te Tiwha addressed the shareholders with the 2016 budget. • He noted the Trust has spent considerable effort refining its policies and procedures. • Te Tiwha thanked Toni Waho for his energy, motivation and intent to support our people. General Business Issues • Unclaimed Dividends strategy formulated to significantly reduce and manage. • Support for the aspirations and activation of Awhiwhenua training course. • Enquiry made about the Pou for the wind turbines. • Support and pleasure around the AWHI magazine. • Forthcoming opening of the Ūpokonui Bridge at Pipiriki on 17 December. It was recommended that voting be closed at 1pm. Moved Dana Blackburn / Seconded Jenny Tamakehu (carried). Hui closed at 12:55 meeting with a karakia from Nohi Wallace.

Moved Te Uta Hibbard / Seconded by Geraldine Taurerewa (Carried). Recommendation that the minutes of the AGM 5 December 2014 be confirmed as accurate. Moved Leigh Bason / Seconded Olive Hawira (Carried).

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GLOSSARY TE ĀTI HAU OF TRUST TERMS NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

Accounts Receivable: Money owed to AWHI from customers at year end, also known as Trade Debtors Accounts Payable: Money owed by AWHI to suppliers of goods or services at year end, also known as Trade Creditors Accrued Income: Income earned by AWHI where cash has yet to be received Accrued Expenses: Expenses incurred by AWHI where cash has yet to be paid Asset: Anything owned by AWHI to use in generating income Balance Date: Term used to describe the end of AWHI’s financial year – 30th June Brassica: The plant family which includes turnips, swedes, rape, kale, cauliflower, cabbages, etc. Capital Stock: The breeding stock on AWHI farms that produce revenue or trading stock to generate income Carbon Credits on Hand: Number of NZ units (NZU) owned at balance date under the NZ Emissions Trading Scheme valued at market value. An NZU = 1 tonne of carbon dioxide equivalent of emissions or removals. Carrying Capacity: Number of livestock a property can graze annually without importation of feed or the deterioration of the property Change in Livestock Numbers: Difference in livestock numbers at end of year compared to the beginning of the year at market values Cull: To remove animals from a breeding population generally because of physical or performance deficiencies Current Asset: An asset of AWHI that is expected to be converted into cash within the next year Current Liability: A liability of AWHI which is generally due to be settled within 12 months of balance date Depreciation: The apportionment of cost of an asset over the useful life of the asset. An accounting method used to reflect the aging and use of an asset Direct Farm Expenses: Expenses incurred by AWHI’s farming operations in generating farm income Drought: A long period of time during which there is very little or no rain Dry Matter: The plant material left after all water has been removed – using DM% comparisons can be made between different feeds such as pasture, swedes, grains, hay, etc. Employee Entitlements: Holiday pay and other leave entitlements owing to employees at balance date Equity: A measure of the shareholders’ total interest in AWHI – the amount by which the value of assets exceed the value of liabilities Feedlot: A third party location where AWHI’s cattle are fed a high protein diet over the winter months Fertility (of soil): Status of soil in terms of the amount of plant-available nutrients it can supply Finishing (livestock): The process of growing animals to a point they are considered ready for slaughter Fixed Asset: Assets held for use by AWHI rather than for sale or conversion into cash Genetics (livestock): Branch of biology concerned with trait inheritance from parents to offspring – important to use the right animals (male or female) to establish and continue AWHI’s breeding programme Greenfeed: Annual crops, usually cereals, grasses or brassicas, grown for animal feed Gross Revenue: What is earned by AWHI from selling goods and services Hectare (ha): A standard metric measurement of land, 1 ha = 10,000m2 = 2.471 acres. Heifer: Term used to describe a young female cattle beast

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GLOSSARY TE ĀTI HAU OF TERMS TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

Hogget: A young sheep between a lamb and a 2 tooth, from approx. 10 to 16 months of age Interest: What AWHI needs to pay for the money it borrows from the bank Liability: General term for what AWHI owes Meat Processing: Process of taking live animals, humanely slaughtering them and then breaking down into saleable beef or sheep meat Milk Solids (MS): The valued solid components in milk – at present, milk-fat and protein, expressed as kg MS Net Farm Income: Income earned from farm activities less the direct costs of these activities Net Operating Surplus / (Deficit): Difference between revenue and the costs incurred to earn this revenue. Prime (livestock): Term used to describe animals that are ready for slaughter Provision for Dividend: Allowance for a Dividend distribution to AWHI shareholders Revaluation of Shares: Difference in the market value of shares that AWHI holds in other companies at this balance date compared to the previous year. Revaluation of Livestock: The livestock price movement being the livestock value at year end versus opening values less the amount attributed to change in livestock numbers Soil Moisture Deficit: Deficit between the actual amount of water in a soil versus its water holding capacity Statement of Cash-flow: Shows the cash movements for the year in Operating, Investing and Financing categories Statement of Financial Performance: Shows how well AWHI has performed in its trading activities. Statement of Movements in Equity: Reports the change in AWHI’s ownership interest in the year Statement of Financial Position: A snapshot” in time that reflects where the money has come from (Equity + Liabilities) and how the money has been used (Assets) Stock on hand: Inventory of goods held for resale or for AWHI’s use, including livestock Stock Units: Livestock in NZ are commonly given a “stock unit” (su) value or measure. The basic unit (1 su) is one breeding ewe that weighs 55kgs; bears 1 lamb; and consumes approx. 550 kilograms of dry matter each year. A beef breeding cow is commonly given a value of 6 su. Stock units have a number of uses e.g. to determine how much feed is required; the stocking rate of a farm, etc. Store (livestock): A term used to describe animals destined for “finishing” that are sold off country, which does not have the potential to finish them, to specialist “finishing” operations on easier more productive country Supplements: Additional animal feed often in the form of conserved hay, silage fodder crops (greenfeeds and brassica crops) or concentrates such as grains or meals Term Liabilities: A liability of AWHI which is generally due to be settled more than 12 months after balance date Unclaimed Dividends Due – Te Āti Hau Trust: Funds relating to unclaimed dividends from the previous year which are advanced to Te Āti Hau Trust to invest Weaner: A young animal that has been weaned from its mother’s milk, capable of living completely on pasture Yield (carcass): Proportion of useable (saleable) meat from a carcass expressed as a percentage of total carcass weight Yield (fibre): Proportion of useable fibre present in a quantity of greasy wool expressed as a percentage

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NOTES TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

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TE ĀTI HAU NOTES TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

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-WHANG A

AT I

I NU

U HA

IN

CO

RPORATI

ON

Toi tu te whenua

16 Bell Street, Whanganui 4500, New Zealand Postal Address PO Box 4035 Whanganui 4540 New Zealand

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