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H U-W ANGA

AT I

I NU

HA

IN

CO

RPORATI

ON

Toi tu te whenua

ANNUAL REPORT 2019


Listen carefully The voice from Paretetaitonga Projecting and owing Across the prosperous and thriving lands Settling at Te Awa Tupua Confirming to us all Ātihau-Whanganui Incoporation For the land, for the people. With great sorrow we acknowledge the dead We cry, we lament you all Go to the great sky above Be with our ancestors and loved ones Sleep well and rest in peace Salutations to one and all Welcome To our gathering of ourselves To our Annual General Meeting To unite us as one Welcome.

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Whakarongo ake rā Ki te reo kōruarua i Paretetaitonga E pāorooro atu nei Ki te whenua tāhora, ki te whenua tōmatomato Tau atu rā ki Te Awa Tupua Me ō reira kōrero Ātihau-Whanganui te koporeihana He whenua, he tangata e Whakarehurehu ana ki ngā mate o te wā Ka tangi, ka hotu mō kautau Pikitia atu rā ki te pūoro wairua i te rangi Ki te iwi nui i te pō Moe mai rā, e oki e. E te iwi, ka nui te mihi Nei rā ko ngā rongo o te tau E rārangi mai nei Kia pai ai te wetewete i ngā kōrero o te tau Mā te nui Āti Tū, mā te rahi Āti Hau Ka puta, ka ora nā.

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CONTENTS TOITŪ TE MANA 6

10 11

Ātihau-Whanganui Incorporation Chairperson's Report Board Members

Business and Brand Strategy 2018

TOITŪ TE WHENUA 12

CEO Report

18

Telling the AWHI Story

17 20 20 19

Executive Team

Land and Buildings Valuation

Summary of Key Financial Information Performance Highlights

TOITŪ TE TANGATA 22

Te Āti Hau Trust Chairperson's Report

27

Summary of Key Trust Financial Information

26 28 30

Te Āti Hau Trust Trustees

Scholarships not just about the money 2018/19 Trust Grant Recipients

ĀTIHAU-WHANGANUI INCORPORATION FINANCIAL STATEMENTS 44

Contents

46

Statement of Comprehensive Income

45

47 48 49 50 66

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

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

TE ĀTI HAU TRUST FINANCIAL STATEMENTS 70

Contents

72

Statement of Service Performance

71 73 74 75 76 80

Entity Information

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

Notes to and forming part of the Performance Report Auditors' Report

APPENDIX 82 83

Glossary of Terms Notes

COVER: Steve Tapa (Farm Manager, Tawanui and Mark Brown (Shepherd, Ohorea). Steve is our 3rd longest serving member of staff, and Mark is our longest serving member of staff.

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Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT

Mavis Mullins Chairperson

Ko te kupu, te kupu Ko te Atua, te Atua Ko Ranginui ki runga Ko Papatūānuku ki raro Ka mate ai te tangata Ka pō, ka ao, ka awatea Tīhei Mouri Ora.

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TOITŪ TE MANA ON BEHALF OF THE ĀTIHAU-WHANGANUI INCORPORATION BOARD, I AM PLEASED TO PRESENT THE ANNUAL REPORT FOR THE FINANCIAL YEAR 1 JULY 2018 TO 30 JUNE 2019.

As an organisation, this past year has been a year of cultural discovery. As we grow and evolve from a farmer to a global food producer the challenge has been to ensure our cultural integrity doesn’t get lost in the corporate haze. The Awhi Way has definitely become a benchmark for decision making at all levels. Some of the challenges we faced have not been easy to overcome, but our core purpose of Toitū te Mana, Toitū te Whenua, Toitū te Tangata, to help people and nature flourish together, continues to give direction to deliver to

our customers, our partners and our shareholders. Toitū te Whenua We are in the third year of an ambitious eight-year investment and development programme of our sheep and beef farms and the focus of improving the infrastructure continues. This strategy is increasingly balanced with cashflow management to ensure these investments are appropriate. We continually scan the new technology environment for innovative and more cost-effective solutions. Our relationships with the Te Hono

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Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT

movement and sector entities help us stay focused on the future of farming practices and challenges. Other strategic pathways have seen the streamlining of farming operations including the shift of management of our home dairy unit Hapuawhenua back in-house to enable better control and management of environmental, animal welfare and people issues. The decision to rationalise Operiki Station by merging it with Papahaua and Waipuna Stations has proved to be positive on both the economic and environmental fronts. We celebrated our first harvest of organic honey. We are on a steep learning curve as we extend our apiary offering in this direction, but the premium that organic honey can command in the marketplace makes it a strong business decision. The waterways that flow across our

whenua are the best indicators of health of the environment so the monitoring programme we began in February with Ngāti Rangi bring an independent lens to the work we do. We look forward to the first results report early next year.

and 69% agreeing that they feel valued at work. We do not wish to rest on percieved laurels however, and so the survey gave us some areas to focus on such as greater communication and connection across the organisation.

Political directions continue to challenge farming entities’ license to operate. We have been engaged in the conversations around the Zero Carbon Bill, the Freshwater Agenda and Climate Change to name a few. Our membership with FoMA provides open forum discussions and advocacy.

The Awhiwhenua training facility continues to develop with accommodation now completed at Tawanui, Ohorea and Waipuna Stations. These new buildings mean our second year cadets can live on-farm as they complete their training for the year. We will again host the Awhiwhenua graduation at our AGM.

Toitū te Tangata People are always of tantamount importance to the success of our business. We were pleased to receive positive and favourable feedback from the staff engagement survey conducted this year, with 75% of staff saying they would recommend Ātihau-Whanganui Incorporation as an employer to a friend

One appointment that has had a positive effect on the Ātihau-Whanganui Incorporation is that of Whetu Moataane, our Tikanga and Branding Manager. Whetu’s contribution over the last year has been felt across the organisation as he brings our unique Māori worldview to the forefront of our organisation. The Board committed two years ago to address and build connections to minimise the unclaimed dividends. This challenge is one that many incorporations and trusts face, and is growing year on year as successions occur. Whetu and his team have used a number of channels including social media. We have implemented a number of face-to-face opportunities for our shareholders to kōrero with Board members and the management team.

"...we continue to invest in a workforce that is fit for purpose and committed to the AWHI-way."

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TOITŪ TE MANA

$3.2m Earnings Before Interest & Tax

had honey in the shed, lambs in the paddock, and as a result less cash in the bank. The value remains as an asset on the books but has increased the debt. We are working hard this year to realign. Since the end of the financial year, we’ve increased the frequency of budget re-forecasts, with a focus on cash flows across multiple years, not just the one we are operating in. Our BNZ partners confirm they are comfortable with our debt levels, and just as importantly our debt management strategy. We are considering a principal repayment plan which would see principal repayment begin on investments as they reach maturity, starting with our share investments and Te Hou Farms over the next 12 months. We acknowledge the high levels of trust and support we share with our valued partners BNZ. Celebrations and events to mark our 50th anniversary are well developed, hear more at this AGM. Toitū te Mana The official launch of our Awhi Ruapehu Angus brand in February was an exciting step forward driven by our added value strategy. Knowing our Awhi beef is being served to discerning diners at some of Auckland’s top restaurants is gratifying. Another milestone was introducing Awhi Lamb into the US marketplace through our strategic partnership with Broadleaf Game. The Awhi Single Harvest Honey will also soon be available to American consumers. I would be remiss if i did not highlight some of the important learnings of this past year. There are two that I believe important to share with you.

Last year a business case was successfully presented to bring the financial operations in house. Although this has progressed well, a number of learnings around complexity and timing were learnt and at this point we sincerely acknowledge the strong relationship we have with Balance who continue to provide guidance and support to ensure this aspiration is achieved. The other matter is around the financial result this year. I refer in particular to the increased debt shown on page 48. In the past we have sold our Mānuka honey in the same year it was produced. A combination of new market demands and our value chain relationships meant that this was not the case this year. We also committed to holding onto some lambs so that we could supply Awhi single source lambs 12 months of the year. This meant we

On behalf of the Board, I would like to thank Andrew and the executive management team for the dedication they bring to their roles. Sincere thanks to all staff for the diligent mahi they do on a daily basis. To my fellow board members, it is a privilege to work as a cohesive team, bringing the dreams and aspirations of our tīpuna and whānau to life. And to you our shareholders, our whanaunga, thank you for your support and contribution as we continue to advance an organisation we can be very proud of. Ngā manaakitanga

Mavis Mullins Chairperson

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Ātihau-Whanganui Incorporation BOARD MEMBERS

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Mavis Mullins (Chair)

Che Wilson

Keria Ponga (Trust Chair)

Brendon Te Tiwha Puketapu

Whatarangi Murphy-Peehi

Sarah Bell (Associate Director)

Rāwiri Tinirau

Shar Amner

Laurissa Cooney (Independent Director, Audit and Risk Committee)


TOITŪ TE MANA

Ātihau-Whanganui Incorporation BUSINESS AND BRAND STRATEGY 2019

Why

Our Purpose.

Toitū te Mana, Toitū te Whenua, Toitū te Tangata

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

How

How we'll generate value.

Tikanga

Tikanga is our source of legacy and competitive advantage.

What

&

Products and Experiences

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

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

Our 5 Strategic Pou - our immediate focus areas

Tangata People

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

Our Values Be completely natural

Whai Hua Productivity

Continuously improving through our collective wisdom and creativity.

Morimori Care

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

Mana Value

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

Whakapapa Brand

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

Informing our actions everywhere, every day.

Think creatively, act courageously

Treat people and nature as family

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Ātihau-Whanganui Incorporation CEO REPORT

Andrew Beijeman CEO

IT HAS BEEN ANOTHER BUSY YEAR FOR ĀTIHAU-WHANGANUI INCORPORATION, WITH PROGRESS MADE, AND CHALLENGES OVERCOME.

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TOITĹŞ TE WHENUA We have also encountered some

Farming

unexpected steep learning curves as

After a kind Spring season, we experienced a very dry Summer which meant we needed to sell some stock store and scanning results were negatively impacted. But, as every farmer knows, these are the ups and downs of farming, reliant as we are on the weather.

we explore new revenue streams and marketplaces for our products. Our focus on adding value by moving up the supply chain to develop a stronger connection with our customers is delivering the economic benefits we planned for along with some learning opportunities we didn’t! But we have met these challenges head on and added to our experience so as to continue building on the fundamentally strong foundations the organisation has put in place.

We did have more calves born this year — 3,584 which is 120 more than last year. A testament to the experience and skill of our farm managers. Our steers did well at market with an average price of $1,851, with those

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Ātihau-Whanganui Incorporation CEO REPORT

sent to the Angus Pure NZ programme attracting a 10% premium which translates to $160 more per head. This goes to show the benefit of a value-add strategy, and we are proud that our farms supply 80% of the beef distributed under the Angus Pure NZ brand to this business partnership. Ātihau-Whanganui Inc lamb numbers also increased on last year’s figure with 95,418 recorded, with an average price of $117 (FY 2017-18 $109) per head achieved at market. Our milk production figures were also up on last years’ so overall AWHI Farms has performed well. Apiary The apiary side of the business performed well with an increase in production of 91,761 kilograms overall —40, 302 kilogram coming from our own hives on Ātihau-Whanganui Inc whenua. This result reflects the expertise our beekeepers bring to their role and the good management practices they employ. One area in which we are developing our apiary business is by producing organic honey. There are considerable restrictions to the way organic hives are managed with a ban on any chemical treatments or supplementary feeding. This requires a more labour-intensive approach but the potential of this revenue stream is promising. We intend to have an Awhi Organic Mānuka Honey product available internationally within the next two years with branding development already in progress. Continuing to build partnerships with landowners to enable us to increase the number of productive hives is still a strategic element of the business and we are working to secure total coverage by bees cared for by the ĀtihauWhanganui Inc apiary team. Environment Our commitment to caring for the land is as strong as ever with a further

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10,000m of riparian fencing completed and 2,000 native species planted.

promote the environmental sustainability of the business.

We have installed 12,600m of fencing to protect native bush and erosion-prone areas from damage by stock.

People

The Board has approved a change in policy so no paddock with a slope of more than 20 degrees is to be used for cropping going forward. This is in line with best practice to reduce the amount of soil and sediment dislodged by feeding stock ending up in creeks, streams and rivers. Our environmental monitoring programme is now in place, with the first initial results due early next year. These will help us to understand fully what is happening in the waterways and enable us to develop further initiatives to

The Ātihau-Whanganui Inc family has grown to 68 permanent staff. This is double what it was five years ago, a further indication of the growth the organisation has experienced in this time. All new members of staff have been welcomed into the team and have settled into their roles well. We have experienced a number of staff successfully moving up the industry ladder by securing more senior internal roles. These team members had to follow the same recruitment procedures as all external candidates and performed extremely well, many of them uri.


TOITŪ TE WHENUA

$24m Total Revenue

Reinforcing and renewing connections with our shareholders is an ongoing focus for our administration team, who continue to discover people with unclaimed dividends.

received many positive responses and all shareholders are encouraged to click like so they can be kept up-to-date with Ātihau-Whanganui Inc news and activities.

Facebook has proved to be a useful tool in this endeavour, with a specific campaign carried out to target whānau currently living in Australia. The shareholder Facebook page has

We are planning two events to mark Puanga next year, plus our farm tour is set to become an annual occurrence. The hunting sub-committee has been busy reviewing policies and processes

"The demand for Awhi lamb is growing, particularly in the US market, with around 14,000 animals born and raised on Ātihau-Whanganui Inc whenua..."

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Ātihau-Whanganui Incorporation CEO REPORT

"...we have met these challenges head on and added to our experience so as to continue building on the fundamentally strong foundations the organisation has put in place."

in order to facilitate more access for hunting, predominantly fallow deer, and kai gathering activities. One successful hunt has already been held and several more are in the planning. Connecting with the whenua in this way is important for many of our shareholders and their whānau so the work the committee is doing holds much value. Added Value The demand for Awhi lamb is growing, particularly in the US market, with around 14,000 animals born and raised on Ātihau-Whanganui Inc whenua now being distributed through our strategic partners Broadleaf Game in America and NZ-based Wilson Hellaby. This relationship means we need to supply lamb every week of the year, which can present a real challenge some months. Good farm management

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is key to maintaining our agreements as we carry more stock across the season than in the past.

apiary business and improvements on

The Awhi Ruapehu Angus brand, launched in February, has also been well-received by consumers. This market accounts for 40% of our prime steers — around 700 animals each year. A further 1000 prime beef steers supply the Angus Pure NZ programme previously mentioned. The fact that our beef makes up such a large proportion of this respected brand is an indication of the quality of the meat we produce and another remarkable achievement.

$160m.

Financials Total revenue for the financial year 1 July 2018 to 30 June 2019 was $24m, an increase of $2.35m from last year,s figure. This result reflects the returns we have experienced through our

livestock market prices. Our total equity remains consistent at Holding more stock at year end has contributed to an increased debt figure of $39.6m (from $31m last year). This has come about in part due to our value-add strategy, which requires us to provide lambs for sale 12 months of the year, which means a greater number of lambs onfarm at the end of the year, which would otherwise have been sold. Debt was also increased because no honey had been sold at the end of the financial year, as well as ongoing investment interests. Our net surplus (before finance costs and non-operating valuations) remains steady at around $3m.


To our Board, thank you for your informed and perceptive governance that continues to guide the organisation into the future.

Next year will no doubt bring its challenges as we continue to strive towards our core purpose of Toitū te Mana, Toitū te Whenua, Toitū te Tangata while growing the mana of our people, our partners and our customers and building the Awhi brand through the sharing of our tikanga and rich history. As we travel further along the path of discovery, the future grows ever more

TOITŪ TE WHENUA

I wish to acknowledge and thank the Ātihau-Whanganui Inc management team for their on-going support and all staff for the dedication they bring each day that enables us to provide our customers with some of the best produce in the country.

exciting. I am looking forward to the year ahead of us. Ngā mihi

Andrew Beijeman Chief Executive Officer

Ātihau-Whanganui Incorporation EXECUTIVE TEAM

Andrew Beijeman (Chief Executive Officer)

Brenton Barker (Finance Manager)

Natasha Poloai (People and Safety Manager)

Whetu Moataane (Tikanga and Branding Manager)

Siwan Shaw (Business Manager Farming)

Dan Adams (Business Manager Apiary)

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TELLING THE AWHI STORY Producing the best quality beef, bred and raised for taste and tenderness, is no longer enough to satisfy discerning customers.

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Consumers want to know how their meat was raised, how it was cared for — they want to know the story behind their steak.

he explains. “The fact that a serving

The business has a dedicated butchery

of beautiful prime Awhi beef can be

team which prides itself on being able

traced back to the paddock it was born

to deliver chefs with specialist cuts

in holds a lot of weight in places that

produced to their exact specifications,

And the story that the ĀtihauWhanganui Incorporation has to tell is one that resonates. It’s a tale people can connect with and know it is being told with integrity and pride.

matter.

as well as top quality regular joints and

It’s a story Nick Archibald, owner of Foodchain, says makes all the difference in a competitive marketplace.

Foodchain is a high-class food partnership with Ātihau-Whanganui Inc

The strategic partnership between

“It is important for resturants, their chefs and their customers, to know where the food they are eating has come from,”

to provide Auckland’s top restaurants

Ātihau-Whanganui Inc and the

with beef produced under the Awhi

Auckland-based Foodchain began in

Ruapehu Angus brand.

2017 after Nick visited the Te Mania

“The care and attention that an animal

steaks.

received during its lifetime, and where

Foodchain also supplies seafood,

it lived, becomes part of the eating

poultry, dry goods, dairy products,

experience.”

cheeses and much more. In fact, there

distribution company which works in

isn’t much on any restaurant menu that the business can’t supply!


TOITŪ TE WHENUA Angus bull stud in North Canterbury. He mentioned that he was looking for producers to supply chefs who demanded the highest quality meats with which to create their signature dishes. “I know Te Mania well as their animals produce the most amazing beef, and they suggested I get in contact with Andrew (Beijeman, CEO of ĀtihauWhanganui Inc) and his team,” he says. “The stud knew what great beef animals Ātihau-Whanganui Inc were producing because the bloodlines come from their bulls.” “When I talked to the Awhi team and listened to what they had to say, I knew I had found what my customers were looking for.”

The relationship began on a solid foundation of common strategic values and continues to go from strength to strength.

Ātihau-Whanganui Inc supply around

“Foodchain has the same aspirations as we do — to provide customers with beef that has been bred for taste and texture and raised with care and skill,“ says Andrew. “They understand our value-add approach and have been instrumental in enabling us to achieve our goal of supplying customers who appreciate quality and are happy to pay the premium required to get it.”

increase numbers further.

“The restaurants and chefs Foodchain talk to on a daily basis have really connected with our story and our paddock-to-plate philosophy. Our Māori kaupapa, too, is something that brings a point of difference to our brand.”

40 pedigree Angus steers every three weeks to Foodchain to meet current requirements and there is capacity to

The high-profile launch of the Awhi Ruapehu Angus brand in Auckland last February has seen it being served in more than 30 restaurants, including SkyCity’s Orbit 360 eatery frequented by the casino’s high-roller clientelle. “The Awhi brand is one of the first to bring an authentic Māori story to the marketplace and its name really means something to people,” says Nick. “When they see ‘Awhi Ruapehu Angus’ on the menu, diners know they are getting the best.”

“FOODCHAIN HAS THE SAME ASPIRATIONS AS WE DO - TO PROVIDE CUSTOMERS WITH BEEF THAT HAS BEEN BRED FOR TASTE AND TEXTURE AND RAISED WITH CARE AND SKILL.” Andrew Beijeman

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Land and buildings valuation Why we revalued our land and buildings International accounting standards require us to do this every three years, and bring the increase or decrease in value into the financial accounts. Ideally, we would get a ‘Fair Value,’ which means we would pay $35,000 to get an independent valuation carried out of all the farms at once, and then over $6,000 each year after that.

line with our values of Toitū te Whenua.

How we carried out this revaluation We have used the ‘Quotable Value’, which is the latest government value that council completes each year for the purpose of calculating rates. Because the auditor will not consider this to be ‘fair value,’ each year our accounts receive a ‘qualified’ audit

to improve the whenua.

We believe this is the most fiscally responsible approach We have a responsibility to you to manage our assets responsibly and in

While it’s nice to know the land is increasing in value, that doesn’t change our connection to it, and obviously it’s not for sale. We believe it is better kaitiakitanga over our assets if we don’t spend $35,000 on this process, and instead we can use that money towards things that benefit you, like trust grants, and further work That is why we have decided not to seek an independent valuation: •

the land and buildings are not for sale

these assets are held in perpetuity for the sole benefit of our current and future shareholders

we think there are better places that we could use the money than on a valuation.

Ātihau-Whanganui Incorporation SUMMARY OF KEY FINANCIAL INFORMATION For the Year Ended 30 June 2019

AT A GLANCE

2019 $'000

2018 $'000

Total Revenue

23,927

21,569

Livestock

16,892

15,682

1,558

1,713

999

1,057

Apiary

2,540

2,264

Other Income

1,938

853

20,745

18,508

3,182

3,061

Milk Wool

Total Expenses Net surplus before finance costs and non-operating revaluations

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TOITŪ TE WHENUA

Ātihau-Whanganui Incorporation PERFORMANCE HIGHLIGHTS For the Year Ended 30 June 2019

Livestock

Increase in calves born 3,584 which is 120 more than last year. Steers average price of $1,851

Livestock Lamb 95,418 recorded (average price)

$117 PER LAMB $109 PER LAMB (2018)

Staff engagement survey

68

Permanent staff

75% recommend AWHI as an

of staff would employer

valued at 69% feel work

14,000 lambs born and raised on AWHI whenua, now distributed through strategic partners in USA.

Environmental Responsibility 10,000m riparian fencing 2,000 native species planted 12,600m of fencing to protect native bush and erosion-prone areas from damage by stock

HONEY

91,761

Angus Pure NZ

80

%

Kilograms overall 40,302 kilogram coming from our own hives on Ātihau-Whanganui Inc whenua.

of beef distributed under this brand is AWHI beef

Total Revenue

Total Equity

Net Surplus*

$24m

$160m

$21.6m (2018)

$159.6m (2018)

$3.0m $3.1m (2018) *before finance costs and non-operating revaluations

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Te Āti Hau Trust CHAIRPERSON'S REPORT

Keria Ponga Trust Chairperson

Tēnei te tangi me te matapōrehu ki ngā aituā o te wā. Haere atu rā kautau ki te kāinga wairua i te rangi, ki ngā mātua tūpuna. Haere, haere, e oki atu rā. Huri te pō, nau mai te ao. Tēnā tātau i runga i ngā tini āhuatanga o te wā. E rere atu ana te whakamānawa i Paretetaitonga, tatū atu ki ngā whenua mōrehu, ā, tae atu rā ki Te Awa Tupua. E te iwi whānui, ka nui te aroha ki tātau i tō tātau hui-ā-tau. Nōku te honore kia tuku tēnei pūrongo-ā-tau. Kia tau te rangimārie ki runga tātau.

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TOITŪ TE TANGATA ON BEHALF OF TE ĀTI HAU TRUST I AM PLEASED TO PRESENT MY LAST CHAIR REPORT FOR THE FINANCIAL YEAR 1 JULY, 2018 TO 30 JUNE, 2019.

It has been a year of transistion and change for the Trust, which has presented us with some challenges as well as benefits that we expect will be seen in the months ahead. Our long-serving Trust Secretary Paul Maguire has passed on the reins to Charmaine Teki as part of the Trust’s strategic intent to bring everything inhouse. This will bring significant savings to the Trust which can be reallocated to other priorities that will directly benefit our shareholders and their whānau. We would like to acknowledge Paul’s role in the Trust’s

work over the past decade and we wish him well in the future. There have also been changes in the Whanganui office as Jonelle HirotiKinane joins the team and assists Charmaine with the administrative duties of the Trust. She brings a fresh approach to the mahi as well as being the friendly face at the front desk and a helpful voice over the phone. Our sincere thanks go to Charmaine and Jonelle for all their hard work, and for providing our shareholders and their whānau with the help and support that they need.

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Te Āti Hau Trust CHAIRPERSON'S REPORT

A change in the makeup of Te Āti Hau Trust Board has also taken place. After serving nine years on the Trust, constitutional guidelines now bring my tenure as trustee to an end. I pass on the role of Chair into the capable hands of Shar Amner who is in his second term on the Trust. A respected colleague and valued contributor, I have every confidence that he will continue the good work of the Trust to serve our people well. I also welcome Rāwiri Tinirau to Te Āti

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Hau Trust as he takes over my postion as the Ātihau-Whanganui Incorporation Board trustee representative. Rāwiri will bring his ‘A’ game to the position as he does with all roles that he is involved in. Exciting times ahead! A key focus area has been a complete overhaul of the Trust’s grant application forms and Trust website with the aim of making it easier for shareholders and beneficiaries to apply for grants both online, and paper-based. I am also pleased that the Alumni Programme

is closer to the starting line and will reconnect us with our grant recipients throughout the years and the many skills, talents and expertise they may bring to the table. I look forward to seeing this project in action. Educational Grants The majority of our grants go toward supporting our tertiary grant recipients who continue to amaze us with their programmes of study. We are very proud of their achievements and


TOITŪ TE TANGATA

$317,048 Total Distributed "...each year we see an increasingly wide variety of applications to support our people, who are representing us on the world stage, and at home."

are inspired by the pursuits of our whanaunga striving to reach their goals and aspirations. This year the Trust approved 290 education grant applications to distribute $186,151, an increase in the number of grant recipients from last year by 52. The number of full-time tertiary undergraduate grants approved increased by 27, bringing the total to 154 to distribute $90,551. We also awarded 13 more medical grants this year for a total of 41 to distribute $27,700.

is relatively simple so with fewer applications this year, I encourage all parents with Year 10 and Year 11 students to apply.

Sports, Arts and Travel category and to

The Trust approved grants to 57 Year 10 and Year 11 students to distribute $14,250.

cultural activities. A brief summary of

General Grants This year a total of $130,898 was distributed for general grants across 47 recipients. Our whānau continue to represent us on a national and global stage in the

this end we distributed $14,822 to 23 applicants. A total of $31,000 was given to support some grant recipients are: $10,000 was approved to assist with the Ratana 100th year celebrations, along with the annual contributions of $1,000 to support the Whanganuitanga celebrations at Pakaitore, and Hui Aranga rōpū travelling to the Hui Aranga. We received fewer marae applications this year with one approval

We saw an increase in the number of postgraduate students by 26, and approved 31 applications to distibute $41,050. We awarded one high achiever student to distribute $1,000, one agriculture student to distribute $3,000, four students studying overseas (double last year) to distribute $7,600, and $1,000 distributed to the Balance/ Deloitte scholarship recipient. It is encouraging to see that the knowledge of the support available for our wāanau studying at tertiary level is growing. This category also covers Year 10 and Year 11 students to help parents meet the costs associated with supporting their tamariki at college. The process

25


of $15,000 given to Koroniti Marae. Currently there are no strict criteria attached to the marae application grant as we believe that the marae trustees know best what their priorities are. In order to share what valuable pūtea we have available, there is a preference to support new applicants that are located within the rohe of the Ātihau-Whanganui Incorporation whenua. While there is currently no specific community grant category, the Trust approved $8,000 for five events held throughout the rohe that have been grouped under the title ‘community’. This also highlights another area for consideration by the Trust. It is very pleasing to see the number of kaumātua applications received have almost doubled from last year. The Trust approved $42,276 in support of 47 kaumātua to assist with their health and well-being. All our grant categories are important to us, so the awhi and manaaki we are able to give alongside the Incorporation to our shareholders and their whānau during their time of grief holds a special place in our hearts. My sincere thanks to the office team and Don Robinson for their speedy response and assistance. Our support this year for tangihanga tents remained the same at $66,000. The trustees are always appreciative of the acknowledgements they receive about the difference a grant has made,

and we thank the shareholders for their endorsement of our grants, and allowing us the privilege to make these available. A breakdown of all grant recipients can be read on page 31. In conclusion We are always looking for opportunities to leverage the support we can give to our shareholders, and the Trust will continue to seek out and build partnerships to further this aim. Our most recent partnership is with Victoria University of Wellington who have agreed to match dollar for dollar all funding we give to grant recipients studying at the institution, a huge investment in the future of our whānau. There are several Iwi Trusts and incorporations that have signed up to this agreement, so if you or your whānau have also received a grant from any of these Iwi organisations, and are studying at Victoria University of Wellington, you will automatically qualify for the dollar value of their contribution as well. That’s a pretty good deal. You can read more about the relationship between the Trust and the university on page 28.

to flourish and set new pathways for the future. It has been my privilege to have been part of the initial set-up of Te Āti Hau Trust and to have remained on the Trust for the duration of the term. My sincere thanks go out to my fellow Trust and Incorporation board members, both past and present, for the honour of working alongside you all, and my heartfelt gratitude goes to all our shareholders for enabling me to support, contribute, and share in your journeys. I would like to thank my fellow Board members Shar Amner, Whatarangi Murphy-Peehi, Aaron Rice Edwards and Jessica Smith for their valuable contribution this year and also to the Ātihau-Whanganui Incorporation for its ongoing support of the Trust. Ngā manaakitanga ki kautau katoa.

Keria Ponga Trust Chairperson

As we head into the next decade for the Trust, I am excited by the opportunities that lay ahead for the organisation and our shareholders. Backed by a strong team of trustees, the Trust will continue

Te Āti Hau Trust TRUSTEES

Keria Ponga (Trust Chair)

26

Whatarangi Murphy-Peehi

Shar Amner

Jessica Smith (Independent Trustee)

Aaron Rice-Edwards (Independent Trustee)


TOITŪ TE TANGATA

Te Āti Hau Trust SUMMARY OF KEY TRUST FINANCIAL INFORMATION For the Year Ended 30 June 2019

FT Tertiary Undergraduate

General Grants

Education Grants

$90,551

$130,898

$186,151

47 TOTAL

154 TOTAL

290 TOTAL

Sports, Arts and Travel

Postgraduate

23 applicants

$14,822

31 approved Increase of 26

distributed

Cultural

$41,050

$31,000

distributed

distributed

Kaumātua Considerable increase on last year's distribution

$42,276 $22,820 (2018)

Kaumātua

assistance supported Dental work Hearing Aids Prescription Glasses Warm, dry, safe homes

27


Scholarships not just about the money 28

Building partnerships in order to leverage the potential to grant scholarships is a key strategic aim for the Te Āti Hau Trust.


TOITŪ TE TANGATA

"Enabling students to gain knowledge of the workplace and valuable experience in their chosen field can be instrumental in aiding them to find a job after completing their studies." Paul Meredith

"Sometimes we have to really work hard to encourage our students to apply for the support and opportunities available to them through iwi trusts and so on because they are not that connected," he says. "Once we have overcome that hurdle, the number of young people who reconnect with their iwi as part of their identity journey is wonderful to see." As well as a substantial scholarship pool to distribute, the University offers career development opportunities through summer internships with government agencies, industry organisations and businesses.

"However, we are restricted by the number of grants we can approve, and distribute, due to the amount of funding we have. By working with other organisations, we can find ways of making each dollar go further for our recipients." One such partnership formed this year is with Victoria University of Wellington, who have agreed to match dollar for dollar every grant approved by the Trust to students at the institution. "We are very excited to have made this agreement with Victoria University of Wellington because it means our support can help even more students," says Keria.

"Financial concerns are often a barrier for our whānau who wish to complete tertiary education on their way to a higher goal or achievement," says the outgoing Te Āti Hau Trust Chair Keria Ponga. "Our aim at the Trust is to support them in their aspirations through a scholarship grant for tuition fees.”

The benefits have been felt immediately, with 45 students already receiving double their original grant award — a total shared investment of $63,900. Paul Meredith, Pou Hautū of the Taihonoa programme at the University, explains that working in partnership with Māori organisations and iwi to facilitate relationships with young students doesn't just bring a financial benefit to the table.

"Enabling students to gain knowledge of the workplace and valuable experience in their chosen field can be instrumental in aiding them to find a job after completing their studies," says Paul. "We can help them get that foot in the door." This type of collaborative partnership between Victorian University of Wellington and Māori signals a new phase in the relationship. "We are wanting to work with iwi and other Māori trusts in a way that responds to their priorities," explains Paul. "We ask, what are your strategic aims? What do you want to do? Do we have any skillsets here that could help you? This has led to a relationship that holds a mutual benefit and delivers tangible results. We are keen to build on this platform and work with iwi further." "This strategic partnership not only enables Te Āti Hau Trust to support more of our people to enter the academic world, but also potentially holds opportunities that can benefit the incorporation and our shareholders as a whole," says Keria. "The future is an exciting one for us all."

29


Te Āti Hau Trust EDUCATION GRANT RECIPIENTS

"I don’t know for sure where I will end up, but I want to be able to reciprocate all the support I have been given by Te Āti Hau Trust, Balance and Deloitte in some way. I want to be able to show others what they have shown me; that anything is possible." Aaron McGregor Balance/Deloitte Grant Recipient

"Education opens so many doors, not just for individuals but for the whole community, so I really want to thank the Trust for the support they have given me." Jacob Robinson Agriculture Scholarship Recipient

"I have received top grades and absorbed more understanding than if I was stressing out on making ends meet. Not only that, but having iwi support makes me more adamant to go home and make a difference. I feel cared for and that what I’m doing matters to someone more than myself." Ngā Remu Huia Tahupārae High Performance Scholarship Recipient

"The money from the Trust not only helped with basic needs such as food and accommodation, it also opened the door to allow me to engage with my iwi and understand more about Te Āti Hau Trust." Elijah Pue Past Scholarship Recipient

"I felt assured my iwi were supporting my mahi, so throughout my whole journey I felt like I wasn’t alone." Hinurewa Poutu Past Scholarship Recipient

30


Te Āti Hau Trust EDUCATION GRANTS LIST

BALANCE/DELOITTE GRANT Recipient

Aaron McGregor

Scholarship

Tertiary Accounting Scholarship

$

1,000.00 TOTAL 1,000.00

POST GRADUATE Recipient

Qualification

PHD Dr of Philosophy - Part-Time

600.00

Jolene Yandall

Post Grad Diploma in Primary Health Care

650.00

Kayla Gray

Massey University

Kelly Harper-Waho

Nursing 770 Clinical Practice Dev.

1,100.00

Tara Ngatai-Broughton

Post Graduate Dip of Nursing Science

1,100.00

Joshua Hurn

Graduate Diploma in Secondary School Teaching

1,200.00

Justin McRobbie Brooks

Doctorate of Philosophy & PHD Physics

1,200.00

Aylla Buchanan

Post Graduate Dip in Education (ECE)

1,300.00

Celine Selwyn

Post Grad Dip in Sport & Exercise Science

1,300.00

Kylie Woon

Post Graduate Diploma in Counselling & Guidance

1,300.00

Samuel Pautahi Kenneth Wright

Graduate Diploma in Teaching (Secondary)

1,300.00

Symmone Tomairangi Yates

Entry to Professional Nursing Practice

1,300.00

Barbara Jean Murdoch

Master of Business & Administration

1,400.00

Chelsea Walsh (2018)

Victoria University

1,400.00

Chelsea Walsh (2019)

Victoria University

1,400.00

Elizabeth Sophie Ngawai Hooker

Master of Educational Leadership

1,400.00

Karanga J Morgan

Master in Applied Indigenous Knowledge

1,400.00

Shona Kapaea-Maslin

Post Graduate

1,400.00

Toni-Anne Wallace

Massey University

1,400.00

Bailey Williams

Postgraduate Diploma in Science (Psychology)

1,500.00

Coralai Toria Green-Repia

Te Wananga o Raukawa

1,500.00

Deanna Haami

Bachelor of Arts (Honours) (Psychology)

1,500.00

Joseph James Taihana Tyro

Masters in Māori & Indigenous Leadership

1,500.00

Maihi Hauiti Archibald Potaka

Masters of Māori Visual Arts

1,500.00

Miriama Cribb

Masters of Business Studies

1,500.00

Nancy Bassett (nee Katene Hooker)

Masters of Arts (2019) PhD (2020,2021)

1,500.00

Rangitaua Hunia

Post Graduate

1,500.00

Soraya Peke-Mason

Master of Business Administration

1,500.00

Tina Nelly Wong

Masters in Nursing

1,500.00

Toni-Anne Wallace

Thesis to complete Masterate in Psychology

1,500.00

Virginia Tui Davis

Post Grad Diploma in Nursing

Te Herekiekie Herewini

$

900.00

1,500.00 TOTAL 41,050.00

AGRICULTURE Recipient

Jacob Lawrence Robinson

Qualification

Phd, Earth Science

$

3,000.00 TOTAL 3,000.00

31


Te Āti Hau Trust EDUCATION GRANTS LIST OVERSEAS Recipient

Qualification

Associates Arts Degree - Arizona Western College, USA

1,800.00

Callum Langford

Batchelor in Civil Engineering - West Virginia University

1,900.00

Paige Hourigan

Business Administration - Georgia Institute of Technology

1,900.00

Pafe Mamalu Momoisea

Sport & Exercise - Coker College, South Carolina, USA

Leila Bailey Blackburn

$

2,000.00 TOTAL 7,600.00

MEDICAL Recipient

Qualification

Bachelor of Nursing

300.00

Alexandra Kumeroa

BA Nursing

300.00

Fiona Kataraina Nicoll

Bachelor of Medicine & Surgery (MB ChB)

400.00

Kerena Butler

Bachelor of Nursing Level 7

400.00

Roimata Bailey Blackburn

BA Applied Science-Medical Imaging Technology (Radiology)

400.00

Gipsy Alysha Foster-Matthews

Bachelor of Nursing Level 7

500.00

Jessica Brooke Hamilton

Bachelor of Nursing

500.00

Kama Whatu

Bachelor of Nursing

500.00

Marcia Apatu

BA Nursing

500.00

Ngawai Jackson

Bachelor of Nursing Level 7

500.00

Rachel Pirere

BA Nursing

500.00

Awhina Dixon

Bachelor of Nursing Level 7

600.00

Ebony McMaster

Bachelor of Nursing

600.00

Frances Leiana Watson

Bachelor Of Nursing Level 7

600.00

Hanna Mei Wheeler

Bachelor of Nursing

600.00

Jocelyn Moana Arahanga

Bachelor of Nursing

600.00

Lanice Ann Ranginui

Diploma in Enrolled Nursing

600.00

Sandy Mitchell

Bachelor of Nursing Level 7

600.00

Terehia Kendrick

Bachelor of Nursing

600.00

Waimarama Matena

Bachelor of Medicine & Surgery

600.00

Wavell Maddams

BA Nursing

600.00

Anahera McDonnell

Bachelor of Nursing

700.00

Anahera Millar-Potaka

Bachelor of Health Science (Rehabilitation)

700.00

Benjamin Tamihana Ratana

Bachelor of Medicine & Bachelor of Surgery

700.00

Caitlin Huria

Cert Health Sciences

700.00

Fiona Te Haara

BA Nursing

700.00

Frances Leiana Watson

Bachelor of Nursing Level 7

700.00

George Langford Miles

Bachelor of Health Science (Occupational Therapy)

700.00

Hinemoana Hall

Bachelor Nursing

700.00

Jessica Williams

Bachelor Nursing

700.00

Krystal Tinirau

Bachelor of Nursing Level 7

700.00

Louise Jansen

Bachelor of Physiotherapy

700.00

Natasha Fowlie

Bachelor Nursing

700.00

Te Reo Moana Whakaruru

UCOL Whanganui

700.00

Tunisha-Faith Akuhata

Bachelor of Health Sciences MÄ ori (Nursing)

700.00

Wavell Madams

Bachelor of Nursing

Alayna Brooks

$

700.00 CONTINUED

32


Te Āti Hau Trust EDUCATION GRANTS LIST MEDICAL Recipient

Qualification

Layne Neil Kay

Genetics major with Plant Botany minor

1,300.00

Sarah Jean Cornes

Bachelor of Medicine & Surgery

1,300.00

Freeman Apou

Bachelor of Medicine & Surgery

1,400.00

Antonio Hoeta

4th Year Diploma Science

Malachi Ropata

Bachelor of Medicine & Bachelor of Surgery (7th & final year)

$

900.00

1,500.00 TOTAL 27,700.00

HIGH PERFORMANCE Recipient

Ngā Remu Huia Tahupārae

Qualification

University of Auckland

$

1,000.00 TOTAL 1,000.00

SECONDARY 10/11 Recipient

School

City College

250.00

Ahurei Millar-Potaka

Manukura School

250.00

Akaylah Ranginui

Whanganui High School

250.00

Amber Neilson

St Joseph's Māori Girls College

250.00

Andrew Wharehinga

Tauranga Boys College

250.00

Angelle Hartley

Te Puke High School

250.00

Aria Rice-Edwards

Whanganui Collegiate School

250.00

Caleb Fortuin- Tiriaha

Aotea College

250.00

Chase Gaitano Benjamin Leach

Tauhara College

250.00

Cody Blair Lockett

Whanganui High School

250.00

Collis McNaughton

Onslow College

250.00

Connor J'son Pauro

Whanganui City College

250.00

Cruz Peter Pauro

Whanganui City College

250.00

Cullen Pita Heremia Hall

Cullinane College

250.00

Dryden Mihaka

Western Heights High School

250.00

Ethan Wiremu Campbell-Smith

Rongotai College

250.00

Fabian Hamilton

James Cook High School

250.00

Frances Tuirirangi

Te Kura O Kokohuia

250.00

Haize Ria Te Ponui Mihaka-Ushaw

Opotiki College

250.00

Ahmir Scurr

$

Harmony Te Rongopai Ngatoa-Wallace Cullinane College

250.00

Heavenly Mihaka

Western Heights High School

250.00

Hinekura Mason

Te Kura o Kokohuia

250.00

JB Martin

Te Kura O Kokohuia

250.00

Johnnie Junior Thomas Tuka Marsh

Cullinane College

250.00

Kaya-Mae Awhitu

Hamilton Girls' High School

250.00

Lafo Takiari Ah Ching

Palmerston North Boys High School

250.00

Legacy Wallace-Latoa

Rotorua Boys' High School

250.00

Logan Katera Blackburn

Wanganui Collegiate School

250.00

Lucas Wharehinga

Tauranga Boys College

250.00

Maia Bidois

Western Heights High School

250.00

Matthew Ruha Oberdries

Mt Albert Grammar School

250.00 CONTINUED

33


Te Āti Hau Trust EDUCATION GRANTS LIST

SECONDARY 10/11 Recipient

School

Whanganui High School

250.00

Mereana Stevie Ray Manihera

Hawera High School

250.00

Mitchell Ian Lockett

Whanganui High School

250.00

Naaman Andrews

Cullinane College

250.00

Ngarimu Matthews

Whanganui High School

250.00

Ngawaikowhai Patuwairua

Te Kura o Kokohuia

250.00

Quiama Te Miha

Te Kura o Kokohuia

250.00

Rachel Rowe

Rangitikei College

250.00

Raukaahu Ethan James Gray-Sharp

Palmerston North Boys High School

250.00

Raycena Makuini Raina Baron

Cullinane College

250.00

Melody Townsend

$

Regan Jade Te Kaho Piire Tyson-Nepia Whanganui High School

250.00

Scarlett Ngawara Blackburn

Wanganui Collegiate School

250.00

Seth Ngatai

Fielding High School

250.00

Te Awanuiarua Patea

Te Kura o Kokohuia

250.00

Te Ikatere Harrison

Te Kura o Kokohuia

250.00

Te Mana Poutokomanawa Tamahaki

Tai Wananga

250.00

Te Pere o te Rā nui Stark - Simon

Te Kura o Kokohuia

250.00

Te Warena Joseph

Te Kura o Kokohuia

250.00

Teesha Te Ua-Wright

Cullinane College

250.00

Tiaana Rolls

St Joseph's Māori Girls college

250.00

Tysinn Tamehana Raymond Lee Bishop Queen Elizabeth College

250.00

Walter Repia

Hato Pāora College

250.00

Walter Repia

Hato Pāora College

250.00

William John Pahl

Hutt Valley High School

250.00

William Wynyard-Harrison

Hato Pāora College

250.00

Xyhaan Gree-Repia

Hato Pāora College

250.00 TOTAL 14,250.00

UNDERGRADUATE Recipient

Qualification

Bachelor of Business (major in Finance)

200.00

Lynda Holster

Kawai Raupapa (Māori & Indigenous Art) & Bachelor of Social Work

200.00

Sharon Marshall

Te Ara Reo Māori

200.00

Madison Durston

Bachelor of Arts: Ethnicity & Identity, Environment Ethics

250.00

Joella Tahi

Finance 115114

300.00

Lynda Holster

Bachelor of Social Work

300.00

Natalia Green Repia

BA Māori Natural Resource Management & Marine Biology

300.00

Natalie Healey

Bachelor of Law

300.00

Te Rua Wallace

Bachelor of Social Sciences - Major Environmental Planning and Māori & Indigenous Studies

300.00

Arama Tuka

NZ Certificate in Business (Small Business)

350.00

Deana Wilson

Bachelor of Science - Geology major (Part-Time)

350.00

Decadia Pakinga

NZ Law Society Legal Executive Dipl Level 6

350.00

Huia Wiari

Bachelor Business Studies major Accounting - minor Agriculture in Business

350.00

Kaylin Huwyler- Hunia

$

CONTINUED

34


Te Āti Hau Trust EDUCATION GRANTS LIST

UNDERGRADUATE Recipient

Qualification

Intro to Chemistry & Mathematics Nov18-Feb19

350.00

Netta McNaughton

Māori Studies

350.00

Tina Tahi

Level 3 Apiculture

350.00

Dayne Gene Perkins-Gordon

Bachelor of Computing and Mathematical Science

400.00

Jessica Brooke Hamilton

Bachelor of Nursing

400.00

Sasha Te Ahuru-Millar

Bachelor of Arts (Public Policy)

400.00

Tawhiao McMaster

BA/LLB

400.00

Valencia Poutini

Poutuarongo Te Rangakura Akonga

400.00

Courtnay Durston

Bachelor of Social Sciences

500.00

Daniel Ephraim Tauru

Te Kunenga o Te Ao

500.00

Grace Parkes

Bachelor of Art majoring Politics & Māori Studies

500.00

Hannah Mei Wheeler

BA Nursing

500.00

Haukapuanui Vercoe

Bachelor of Engineering (Honours)

500.00

Hope Shontae Tioro

Psychology

500.00

Julia Wareham

Bachelor of Law & Sciences

500.00

Kayla Wareham

Bachelor of Business major Marketing - minor Management

500.00

Kristie Rihia

Bachelor of Teaching

500.00

Layne Neil Kay

BSc majoring in Genetics & Plant Biotechnology minor

500.00

Luke Enoka

Digital Design - Web & Graphic

500.00

Natalia Green

BA Māori Natural Resource Management & Marine Biology

500.00

Pearl Dickinson (Anne)

Pharmacy Technician Level 5

500.00

Rachael O'Halloran

Bachelor of Applied Management

500.00

Raukura Waihoea Naani Jane Whakaipo Waitai

BA Māori Visual Arts

500.00

Rayden Huwyler- Hunia

Bachelor of Science

500.00

Rio Bell

Victoria University

500.00

Sandy Mitchell

Bachelor of Nursing

500.00

Sonny James Hurinui Nepia

Business- Finance, Entrepreneurial Innovation

500.00

Taine Anthony Julian

Bachelor of Commerce

500.00

Tariana Turia

Diploma in Beauty Services

500.00

Te Arepa Teutupoto Teki

Eastern Institute of Technology

500.00

Te Awhina Plumridge

BA Arts & BA Laws

500.00

Vasilios Kostidis

Bachelor of Performing Arts

500.00

Waimihia J Maniapoto-Love

Bachelor of Art/ Māori Development/ Politics

500.00

Ariana Joseph

Te Aho Tatairangi: Bachelor Of Teaching Māori Medium

600.00

Ashleigh Tahiwi

Bachelor of Science majoring in Physiology

600.00

Ashley Te Weri

Bachelor of Veterinary Nursing

600.00

Billie Mills

Diploma in Business

600.00

Cameron Hurley

Toiora Whānau

600.00

Courtney Te Ahuru-Millar

Bachelor of Arts (Criminology & Sociology)

600.00

Danielle Ella Rae Rihia

Bachelor of Education

600.00

Dayna Stevenson

Bachelor of Science - Anatomy major

600.00

Gemma Fore

Bachelor of Social Work

600.00

George Langford Miles

Sport and Recreation

600.00

Mitchell Merriman

$

CONTINUED

35


Te Āti Hau Trust EDUCATION GRANTS LIST

UNDERGRADUATE Recipient

Qualification

BA in Media Studies & Political Science

600.00

Israel Hepi

Bachelor Of Teaching - Primary

600.00

Jacinda Te Amo

Te Ronakitanga Ki Te Reo Kairangi Level 5

600.00

Jasmaine Ruaka Martin

Bachelor of Bicultural Social Work

600.00

Joanne May Piripi

Maunga Kura Toi Raranga Level 7 Degree

600.00

Joshua James Holster

Electrical Engineering Level 3

600.00

Kahumoerangi Te Kani

Bachelor of Science major Maths & Economics

600.00

King Anthony Love

Te Haputanga o te Ao Tikanga, Diploma Level 5

600.00

Larissa Ellen Tucker

Bachelor of Laws

600.00

Leearn-Christie Iles

Te Wananga o Otaki

600.00

Maramapai Simon

NZ Certificate in Adult Literacy & Numeracy Ed L5

600.00

Naumai Kairimu

Te Rangakura

600.00

Nicola Walsh

Bachelor of Law & Bachelor of Arts

600.00

Poutamakiterangi Hamahona-Taiaroa

Bachelor of Sport & Exercise major in Physical Education

600.00

Sam Wright

Bachelor of Applied Science

600.00

Sidney Taku

Bachelor of Arts

600.00

Sofia May Tucker

University of Canterbury

600.00

Sonny Vercoe

Bachelor of Civil Engineering & Environmental Engineering (Hons)

600.00

Talia Poutini

Poutuarongo Kawa Oranga

600.00

Tamahina Sheridon

Bachelor of Arts

600.00

Tameka Solomon

Bachelor of Teaching (ECE)

600.00

Te Aotahi Rice Edwards

Bachelor Degree of Design

600.00

Te Mana-o-Tawhaki Huwyler

Bachelor of Design Innovation

600.00

Te Miringa Parkes

BA majoring in Māori/ B Com - majoring in Accounting, Innovation & entrepreneurship

600.00

Te Puawai Wilson-Leahy

Bachelor of Arts & Laws

600.00

Te Rua Wallace

Bachelor of Social Sciences- Major Environmental Planning and Māori & Indigenous Studies

600.00

Tibet Ranginui

Bachelor of Fine Arts with Honours

600.00

Titaha Townsend

Bachelor of Nursing

600.00

Trevor Waikawa

Bachelor of Science, Geography major

600.00

Wairaka Sueanna Hasler

Level 4 Cookery

600.00

Aaron Falwasser

NZ Cert in Food & Bev Level 4

700.00

Ahungarangi Poutini

Livestock Farming & Farm Resource Management - Awhiwhenua

700.00

Alana Louise Smith

Bachelor of Early Childhood Education

700.00

Anahera Wakefield

Bachelor of Nursing Level 7

700.00

Asher Katene

BA major Indigenous Development & Psychology

700.00

Casper -Rose Marama

Bachelor in Applied Management

700.00

Cheyenne Church

Bachelor of Veterinary Science - Pre Selection

700.00

Daniel Brooks

Bachelor Business Studies - Finance major

700.00

Dayna Ruihi Ellen Stevenson

Bachelor of Science - Psychology major

700.00

Flynn Matiu Oberdries

Bachelor of Science in Information Science, minor in Statistics

700.00

Grace Pokiha

Bachelor of Arts and Science

700.00

Harmony Te Amo

Aviation & Tourism Management Level 4 & 5

700.00

Hayden-Jade Taiaroa

BA Psychology

700.00

Isabella Hammond

$

CONTINUED

36


Te Āti Hau Trust EDUCATION GRANTS LIST

UNDERGRADUATE Recipient

Qualification

Pouturongo Whare Tapere

700.00

Hinengakau Karauria

Dipl. for Grads endorsed in Psychology & Bachelor of Science

700.00

Hope Rose Middleton

Art Design and Social Innovation

700.00

Israel Hepi

Bachelor of Teaching

700.00

Jacinda Te Amo

Te Pokaitahi Reo (Rumaki) Te Kaupae 3 & 4

700.00

Jack Potaka

Bachelor of Arts - Te Reo & LLB

700.00

Jesse Ngahina Williams

Bachelor of Engineering, Network Engineering

700.00

Jessica Rapana

Ag Challenge

700.00

Jocelyn McLean

Diploma in Conveyancing Level 6

700.00

Joni Bishop

Bachelor of Engineering with Honours Intermediate

700.00

Josephine Falwasser

Level 4 Culinary Arts

700.00

Josiah Thompson

NZ Cert. Food & Beverage Level 4

700.00

Kaesharn Hose

Bachelor of Arts

700.00

Katieanne Rask

Food & Beverage Levels 3 & 4

700.00

Kaylah Nikora-Baker

NZ Diploma in Business

700.00

Layton Kereama Rameka Rattray

National Certificate in Security Levels 2 & 3

700.00

Lee Michelle Ngatoa

Diploma in Chaplaincy

700.00

Lee Te Karere Ashford

Toiora Whanau

700.00

Leonnie Parekautaka Farr Motu

Te Taketake Diploma in Applied Addictions Counselling (Level 7)

700.00

Manahi Te Hiakai Gardiner

Bachelor of Science majoring in Physics

700.00

Maria Waitokia

NZ Cert. Whānau Ora Level 4

700.00

Marilyn Tamakehu

Heke Toiora Whānau

700.00

Maximus-Paul te Awhitu Bell- Wymer

Bachelor of Engineering with Honours in Civil Engineering

700.00

Michelle Robb

Te Ara Reo Māori (HE Pi Ka Rere) Level 4

700.00

Nova Elers

BA major in Philosophy

700.00

Orewea Wanakore

Tourism & Travel Levels 3 & 4

700.00

Oriwa Hohaia

Bachelor of Laws, Bachelor of Arts (Major in Maori Resource management)

700.00

Paulette Paretauhinga Le Gros

NZ Dip in Construction Level 6

700.00

Petaera Meihana

Carpentry Apprenticeship

700.00

Puna Whakaata Maniapoto-Love

Bachelor of Arts/ Bachelor of Law

700.00

Raina Wiari-Wroe

Carpentry Level 3

700.00

Raukura Doyle

Conjoint Degree in Bachelor of Health and Laws

700.00

Raumati McDonnell

Otago University

700.00

Rawinia Taiaroa

Commercial Road Transport

700.00

Raymond Marshall

BCITO

700.00

Rena Desina Silipa

B.Sc. in Psychology & Development studies

700.00

Renee Lawton

Small Business Studies Level 4

700.00

Ronan Heathcote

Law & International Relations

700.00

Sarah Hayley Te Ana Williams

Psychology, Criminology and Statistics

700.00

Shaunaye Schimanski

Bachelor of Science major in Genetics

700.00

Sidney Tuku

BA Arts

700.00

Sylvana Wiari

Bachelor of Bicultural Social Work

700.00

Takapuna Hamilton

NZ Diploma in Creativity Level 5

700.00

Hinehou Treanor

$

37


Te Āti Hau Trust EDUCATION GRANTS LIST

UNDERGRADUATE

Recipient

Qualification

Bachelor of Arts

700.00

Te Ahikaa Johnson

UCOL

700.00

Te Aotahi Rice-Edwards

Bachelor of Design Innovation

700.00

Te Matau Allen

Bachelor of Engineering with Honours

700.00

Te Matau o Te Rangi

Massey University

700.00

Te Puawai Wilson

Bachelor of Arts & Laws

700.00

Te Wehi Ratana

Building Apprenticeship

700.00

Terrence Ranginui

Bachelor of Commerce

700.00

Tyler-Kennedy Moana McCallum

Bachelor Of Arts Majoring in English Literature & Film

700.00

Vaishalee Renata

Bachelor Of Nursing

700.00

William Leonard Stevenson

Certificate in University Studies

Tamahina Sheridan

$

700.00 TOTAL 90,200.00

Te Āti Hau Trust GENERAL GRANTS LIST COMMUNITY Recipient

Grant Recipient Category

Waitangi Day Community Celebrations

500.00

Te Otene Paora Urwin

Digital Technology Trip USA Sep 26th-October 7th 2019

500.00

Kaiwhaiki Pa

Whanganui River Hunting Competition & Wild Food Festival

1,000.00

Tauira Neehi Maori Roopu

Attend Kaunihera o ngā Neehi Maori Hui a Tau

1,000.00

Tira Hoe Waka Committee

Financial assistance to offset operations for 31st annual Tira Hoe Waka 2019

Te Awanui a Rua Charitable Trust

$

5,000.00

TOTAL 8,000.00

SPORT ART TRAVEL

Recipient

Grant Recipient Category

National Youth Rugby League Competition

200.00

Aaliyah Taiaroa

National Māori Basketball Tournament

350.00

Kartiah Taiaroa

National Māori Basketball Tournament

350.00

Paige Taiaroa

National Māori Basketball Tournament

350.00

Raina Taiaroa

National Māori Basketball Tournament

350.00

Seth Ngatai

National Māori Basketball Tournament

350.00

Stevie Ngatai

National Māori Basketball Tournament

350.00

V'Chay-Latrell Wiari Hemopo

ASA NZ National Scooter Competition

350.00

Kaea Josephs-Ranginui

Assist with Riding For Disabled activity fees

471.50

Bailey Joshua Marumaru

NZ Invitational Team to Native American Basketball Invitational Tournament Age 17

Tiaho Te Maramatanga Hamahona-Taiaroa

38

$

500.00 CONTINUED


Te Āti Hau Trust GENERAL GRANTS LIST

SPORT ART TRAVEL

Recipient

Grant Recipient Category

NZBA Girls U16 Las Vegas tour 15th-30th July 2019

500.00

Jackson Hardwidge

Travelling and playing with the NZ ISA softball to Canada and playing in numerous tournaments

500.00

Jordan Herewini

U13 NZ Basketball Academy Tour of Las Vegas

500.00

Karaitiana Horne

NZ Motocross Junior Nationals plus training & development 2019-2020

500.00

Kaya-Mae Awhitu

NZ Touch Team touring Gold Coast & Brisbane in September 2019

500.00

Maraki Aumua

U16 Boys NZ Touch Development Tour 2019 (Australia)

500.00

Tukotahi Mareikura-Edmonds

World Hip Hop Championships, Phoenix Arizona 2019

500.00

Summer May Khan Turia

NZ Inline Hockey World Championships - Senior and Junior teams

Michael Leylander

Muay Thai Federation team to complete at IFMA World Championships in Bangkok,Thailand. 20-29 July 2019

1,000.00

Charlotte Kay Tuala

WINA Indoor Netball World Cup in Cape Town, South Africa

1,500.00

Kahureremoa Aki

Touch World Cup 2019 in Putrajaya

1,500.00

Kim Ranginui

Seeds Conservation Techniques

1,500.00

Shenaragh Nemani

Los Angeles Salsa Festival 2019

Hinetekawa Thomson-Laulu

$

700.00

1,500.00 TOTAL 14,821.50

CULTURAL Recipient

Grant Recipient Category

Yr10 Spirit Trophy Voyage Team

300.00

Christie Ngamihi Wallace

Whānau Support for Christie Wallace at National Manu Korero competition

350.00

Connor Pauro

Finalist in the National Ngā Pū Kōrero competition

Hailey & Tukotahi Mareikura-Edmonds

Representing NZ at World Hip Hop Dance Championships

1,000.00

Pakaitoire Trust

Pakaitaore 2019 Celebrations

1,000.00

Conna Scott Hawira

$

350.00

St Pauls Memorial Church Putiki

1,000.00

St Peter Chanel

Hui Aranga

1,000.00

St Vincents Maori Club

Hui Aranga

1,000.00

Te Roopu o Parikino

Hui Aranga

1,000.00

Te Wainui a rua

Hui Aranga

1,000.00

Para Kore Marae Incorporated

For Ruapehu representative to implement parakore in the Ruapehu rohe

Atihau Whanganui Incorporation

50 Year Celebration Book

Ratana (Ratana Oreikenui Trust)

Ratana 100 Year Celebrations

3,000.00 10,000.00 10,000.00 TOTAL 31,000.00

39


Te Āti Hau Trust GENERAL GRANTS LIST

MARAE

Recipient

Ngati Pamoana Hapu

Grant Recipient Category

Stage one: New Urupa Project for Koroniti Marae

$

15,000.00 TOTAL 15,000.00

KAUMATUA Recipient

Grant Recipient Category

Kamuamtua Health & Well Being

412.00

Margaret Haami

Kamuamtua Health & Well Being

459.00

Georgina Materina Duncan

Kamuamtua Health & Well Being

473.25

S&ra Louise Thocolich

Kamuamtua Health & Well Being

495.00

Adelaide Mere Taurerewa

Kamuamtua Health & Well Being

554.00

Elaine Pikitia Farr

Kamuamtua Health & Well Being

554.00

Fiona Lillian Phillips

Kamuamtua Health & Well Being

750.00

Adrianne Rowe

Kamuamtua Health & Well Being

760.00

Mary Joyce Te Haara

Kamuamtua Health & Well Being

828.00

Anini Matena

Kamuamtua Health & Well Being

848.00

Guy James Puhurangi Rerekura

Kamuamtua Health & Well Being

900.00

Ambrose Marino

Kamuamtua Health & Well Being

1,000.00

Amiria Beamsley

Kamuamtua Health & Well Being

1,000.00

Annette Hawe

Kamuamtua Health & Well Being

1,000.00

Bernadette Hadfield

Kamuamtua Health & Well Being

1,000.00

Christopher Te Iwima

Kamuamtua Health & Well Being

1,000.00

Doreen Barnes

Kamuamtua Health & Well Being

1,000.00

Ellen Gail Karamaena

Kamuamtua Health & Well Being

1,000.00

Henare Ryder

Kamuamtua Health & Well Being

1,000.00

Hine Stanley (2018)

Kamuamtua Health & Well Being

1,000.00

Hine Stanley (2019)

Kamuamtua Health & Well Being

1,000.00

Horiwia Charmaine Puru

Kamuamtua Health & Well Being

1,000.00

James Peeti

Kamuamtua Health & Well Being

Nikora Thomas Poumua

$

1,000.00 CONTINUED

40


Te Āti Hau Trust GENERAL GRANTS LIST

KAUMATUA Recipient

Grant Recipient Category

Kamuamtua Health & Well Being

1,000.00

Lilian Georgina Wardlaw

Kamuamtua Health & Well Being

1,000.00

Linda Ngaropi Goodgame

Kamuamtua Health & Well Being

1,000.00

Maata Wilks

Kamuamtua Health & Well Being

1,000.00

Margaret Menehira

Kamuamtua Health & Well Being

1,000.00

Maria Kaiwhare

Kamuamtua Health & Well Being

1,000.00

Marion Ngaropi Peeti

Kamuamtua Health & Well Being

1,000.00

Milford Taiaroa

Kamuamtua Health & Well Being

1,000.00

Pat Pene (Herehere Patricia Pene)

Kamuamtua Health & Well Being

1,000.00

Phillip Reweti

Kamuamtua Health & Well Being

1,000.00

Puawai Thompson

Kamuamtua Health & Well Being

1,000.00

Rahera Rae Yuma Apou

Kamuamtua Health & Well Being

1,000.00

Raita Tukia Tomlinson

Kamuamtua Health & Well Being

1,000.00

S&ra Te Onewhero Ranginui

Kamuamtua Health & Well Being

1,000.00

Tahu Wallace

Kamuamtua Health & Well Being

1,000.00

Taniwha Te Opetini Blackburn

Kamuamtua Health & Well Being

1,000.00

Terence Te Tua Ranginui

Kamuamtua Health & Well Being

1,000.00

Valerie Carmel Terarau Schultz (2017)

Kamuamtua Health & Well Being

1,000.00

Valerie Schultz (2018)

Kamuamtua Health & Well Being

1,000.00

Valerie Terarau (Carmel) Schultz (2019)

Kamuamtua Health & Well Being

1,000.00

Wahi Teki

Kamuamtua Health & Well Being

1,000.00

William Rangi Ranginui

Kamuamtua Health & Well Being

1,000.00

Joyce Kani (nee Tamakehu)

Kamuamtua Health & Well Being

Josephine Wymer

$

1,100.00 TOTAL 42,276.25

41


42


Ä€tihau-Whanganui Incorporation Financial Statements for the year ended 30 June 2019

43


Ä€tihau-Whanganui Incorporation FINANCIAL STATEMENTS 2019

CONTENTS

44

45

Shareholding and Committee of Management Disclosures

46

Statement of Comprehensive Income

47

Statement of Changes in Equity

48

Statement of Financial Position

49

Statement of Cash Flows

50

Notes to and forming part of the Financial Statements

57

14 Cash and Cash Equivalents

57

15 Stock on Hand

57

16 Biological Assets

59

17 Investments in Associates & Joint Ventures

60

18 Property, Plant & Equipment

61

19 Share Investments

61

20 Intangibles (Emmission Trading Units)

61

21 Borrowings

50

1 Reporting Entity

62

22 Programmed Property Maintenance

50

2 Statement of Compliance and Basis of Preparation

62

23 Limited Partnership Deferred Capital Contribution

50

3 Basis of Preparation

62

24 Unclaimed Dividends

50

4 Specific Accounting Policies

63

25 RFinancial Instruments

53

5 Critical Accounting Estimates

63

26 MÄ ori Authority Credit Account

54

6 Revenue from Contracts with Customers

64

27 Related Parties

54

7 Other Income

65

28 Contingent Libilities

55

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

65

29 Subsequent Events

55

9 Finance Income

65

30 Operating Lease Arrangements

55

10 Depreciation & Loss on Sale

65

31 Commitments for Expenditure

55

11 Other Operating Expenses

65

32 Capital

55

12 Equity Accounted Investments

65

33 Reserves

56

13 Income Tax

66

Auditors' Report


Ātihau-Whanganui Incorporation SHAREHOLDING & COMMITTEE OF MANAGEMENT DISCLOSURES For the Year Ended 30 June 2019 Share Information

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

No. of Shareholders 12 233 299 1,472 4,122 1,555 1,335 9,028

0.13% 2.58% 3.31% 16.30% 45.66% 17.22% 14.79% 100.0%

No. of Shares Held

111,995 448,100 210,641 347,810 133,239 4,239 504 1,256,529

8.91% 35.66% 16.76% 27.68% 10.60% 0.34% 0.04% 100.00%

Committee of Management - Shareholding CoM members have the following shares in the Incorporation registered in their names as at 30 Sept 2019. Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau Shar Amner Te Tiwha Puketapu Whatarangi Murphy-Peehi

61.05 1000 545.36 3104.35

This schedule does not include shareholdings registered in the name of Trusts of which a CoM member may be a beneficiary. Committee of Management - Meeting Attendance There were eight monthly meetings and one AGM of the Committee during the year. Member's attendance was as follows: Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau Sarah Bell Shar Amner Te Tiwha Puketapu Whatarangi Murphy-Peehi Laurissa Cooney

Ordinary 7 8 8 7 5 8 8 7 2

AGM 1 1 1 1 1 1 1 1 1

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

Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau Shar Amner Te Tiwha Puketapu Whatarangi Murphy-Peehi Laurissa Cooney

Fees $

Comment

28,739.89 28,739.89 51,947.22 Vehicle Provided 28,739.89 28,739.89 28,739.89 28,739.89 8,000.00

45


Ä€tihau-Whanganui Incorporation STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 30 June 2019 Note

2019 $

2018 $

16,892,283

15,682,000

1,558,111

1,712,785

REVENUE FROM CONTRACTS WITH CUSTOMERS Livestock

6

Milk Wool Apiary

6

998,565

1,056,821

2,540,154

2,263,741

21,989,113

20,715,347

OTHER INCOME Gain / (loss) from sale of emission trading units

8

190,000

199,100

Finance income

9

4,912

55,328

308,476

370,008

7

1,434,697

229,249

1,938,085

853,684

23,927,198

21,569,032

Rental income Other income TOTAL REVENUE & OTHER INCOME EXPENSES Farm working expenses

9,809,953

9,032,240

Employee benefits expense

4,723,510

3,978,872

Depreciation and loss on sale

10

2,228,642

1,952,813

1,269,543

1,341,512

Governance and shareholder expenses

674,663

671,194

Donations and scholarships

441,523

369,739

Repairs and maintenance

Other operating expenses

11

TOTAL EXPENSES NET SURPLUS BEFORE FINANCE COSTS AND NON OPERATING REVALUATIONS

1,597,331

1,161,497

20,745,166

18,507,867

3,182,032

3,061,164

(1,736,006)

(1,624,768)

FINANCE COSTS Interest expense

REVALUATION LOSSES Loss from equity accounted investments

(991,865)

(290,767)

Loss due to price changes on livestock

(584,635)

(147,379)

NET (DEFICIT)/ SURPLUS BEFORE INCOME TAX

(130,474)

998,250

(218,806)

(129,128)

88,332

1,127,378

Income tax expense - current year movement

12

13

NET (DEFICIT) / SURPLUS AFTER INCOME TAX OTHER COMPREHENSIVE INCOME Revaluation of share investments

46

(478,258)

(101,335)

Revaluation of property, plant & equipment

18

-

23,028,517

Revaluation of emission trading units

20

1,665,656

4,149,115

Share of gain on property revaluation of associates

12

336,386

2,443,526

Income tax relating to items that will not be reclassed subsequently

13

(291,490)

(2,691,199)

TOTAL OTHER COMPREHENSIVE INCOME - GAIN

1,232,294

26,828,624

TOTAL COMPREHENSIVE INCOME

1,320,626

27,956,002

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


Ä€tihau-Whanganui Incorporation STATEMENT OF CHANGES IN EQUITY For the Year Ended 30 June 2019 Capital Reserves $ BALANCE AT 1 JULY 2018

PPE Reval Reserve $

Retained Earnings $

ETU Reserve $

24,311,005 100,829,518 27,199,527

6,988,144

Share Reserve $

Total Equity $

286,328 159,614,522

Adjustment to reclass land & buildings

-

-

-

-

-

-

Dividends paid

-

-

(816,741)

-

-

(816,741)

Transactions with owners

-

-

(816,741)

-

-

(816,741)

Net Surplus after Income tax

-

-

88,332

-

-

88,332

-

-

-

1,665,656

-

1,665,656

Other Comprehensive Income - Revaluation of emission trading units -R  evaluation of property plant & equipment

-

-

-

-

-

-

- Revaluation of share investments

-

-

-

-

(478,258)

(478,258)

-S  hare of gain (loss) on property revaluation of associates

-

336,386

-

-

-

336,386

- Income tax relating to items that will not reclassify Total Comprehensive Income for the Year

-

(291,490)

-

-

-

(291,490)

-

44,896

88,332

1,665,656

(478,258)

1,320,626

Transfer to Retained Earnings

-

-

-

-

-

-

BALANCE AT 30 JUNE 2019

24,311,005

100,874,414 26,471,118

8,653,800

(191,929) 160,118,407

BALANCE AT 1 JULY 2017

30,098,776

72,260,903 25,571,917

4,030,350

387,663 132,349,609

Adjustment to reclass land & buildings

(5,787,771)

5,787,771

-

-

-

-

Dividends paid

-

-

(691,089)

-

-

(691,089)

Transactions with owners

-

-

(691,089)

-

-

(691,089)

Net Surplus after Income tax

-

-

1,127,378

-

-

1,127,378

- Revaluation of emission trading units

-

-

-

4,149,115

-

4,149,115

- Revaluation of property, plant & equipment

-

23,028,517

-

-

-

23,028,517

- Revaluation of share investments

-

-

-

-

(101,335)

(101,335)

-S  hare of gain (loss) on property revaluation of associates

-

2,443,526

-

-

-

2,443,526

- Income tax relating to items that will not reclassify

-

(2,691,199)

-

-

-

(2,691,199)

Total Comprehensive Income for the Year

-

22,780,844

1,127,378

4,149,115

(101,335)

27,956,002

Transfer to Retained Earnings

-

-

1,191,321 (1,191,321)

-

-

Other Comprehensive Income

BALANCE AT 30 JUNE 2018

24,311,005

100,829,518 27,199,527

6,988,144

286,328 159,614,522

A description of the nature and purpose of each reserve is stated in note 33.

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

47


Ātihau-Whanganui Incorporation STATEMENT OF FINANCIAL POSITION As at 30 June 2019

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Stock on hand Biological assets TOTAL CURRENT ASSETS

2019 $

2018 $

2,242,031 3,735,591 36,475,449 42,453,071

194,475 2,984,147 632,280 33,321,342 37,132,244

146,092,014 9,719,508 1,662,983 7,817,800 165,292,305

143,859,621 10,362,102 1,540,702 6,988,144 162,750,569

207,745,376

199,882,813

14 21 23

247,886 13,839,033 1,504,199 618,264 306,807 16,516,190

9,993,918 2,066,666 1,727,915 332,699 20,000 262,659 14,403,857

21 22 24 13

25,762,967 366,723 2,346,348 2,634,741 31,110,780

21,000,000 149,158 2,153,205 2,562,071 25,864,433

47,626,970

40,268,290

160,118,407

159,614,523

26,471,118 133,647,290

27,199,527 132,414,995

160,118,407

159,614,522

14 15 16

NON CURRENT ASSETS Property, plant & equipment Investments in associates and joint ventures Share Investments Intangibles TOTAL NON CURRENT ASSETS

18 17 19 20

TOTAL ASSETS CURRENT LIABILITIES Cash & cash equivalents Borrowings Limited Partnership deferred capital contribution Trade and other payables GST payable Te Āti Hau Trust Employee entitlements TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Borrowings Programmed property maintenance Unclaimed dividends Deferred tax liability TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Retained earnings Reserves

32 & 33

TOTAL EQUITY

The Committee of Management of Ātihau-Whanganui Incorporation authorised the financial statements for issue on 11 October 2019. Signed for and on behalf of the Committee of Management:

Mavis Mullins Chairperson 11 October 2019

48

Brendon Te Tiwha Puketapu Chairman of the Audit and Risk Committee 11 October 2019

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


Ä€tihau-Whanganui Incorporation STATEMENT OF CASH FLOWS As at 30 June 2019

2019 $

2018 $

21,943,979

24,570,563

CASH FLOWS FROM OPERATING ACTIVITIES Cash was provided from: Receipts from operations Interest & dividends received

4,912

55,328

21,948,891

24,625,891

22,129,887

18,721,538

1,684,001

1,624,768

Cash was disbursed to: Payments to suppliers and employees Interest paid Net GST paid

NET CASH FLOWS FROM OPERATING ACTIVITIES

19,870

52,808

23,833,758

20,399,114

(1,884,867)

4,226,777

89,404

185,083

CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds from disposals of property, plant & equipment Proceeds from disposals of investments

1,026,000

-

1,115,404

185,083

Acquisition of property, plant & equipment

4,528,193

3,000,154

Purchase of investments

2,667,666

379,515

7,195,859

3,379,669

(6,080,455)

(3,194,586)

8,608,082

262,710

8,608,082

262,710

623,598

657,807

Cash was disbursed to:

NET CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCIAL ACTIVITIES Cash was provided from: Proceeds from borrowings Cash was disbursed to: Dividends Grants & donations

461,523

449,738

1,085,121

1,107,545

NET CASH FLOWS FROM FINANCIAL ACTIVITIES

7,522,961

(844,835)

Net (Decrease)/Increase in Cash Held

(442,361)

187,356

194,475

7,119

(247,886)

194,475

Cash at the Beginning of the Year CASH AT THE END OF THE YEAR

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

49


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 STATEMENT OF ACCOUNTING POLICIES 1. REPORTING ENTITY Ātihau-Whanganui Incorporation (AWHI) is registered under the Te Ture Whenua Māori Act 1993 and is incorporated in New Zealand. 2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION

The financial statements have been prepared using the significant accounting policies and measurement basis that are in effect at 30 June 2019 as summarised below. These were used throughout all periods presented in the financial statements.

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.

4. SPECIFIC ACCOUNTING POLICIES

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 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.

(a) Revenue Recognition Revenue from Contracts with Customers Revenue from contracts with customers comprises the expected value for the sale of goods and services, excluding Goods and Services Tax. Revenue is recognised either over time or at a point in time, as follows:

3. BASIS OF PREPARATION The financial statements have been prepared under the historical cost basis except for land & buildings, biological assets and some financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

50

The information is presented in New Zealand Dollars and all values are rounded to the nearest dollar.

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

Sale of Goods - Livestock AWHI sells livestock to third-party buyers. The livestock revenue is recognised at the point in time that control is assumed by the buyer, being the date that the animal is killed. The amount of revenue recognised is based on the industryaccepted market price provided by the buyer. Sale of Goods - Apiary AWHI sells honey product to a thirdparty buyer. Honey sale revenue is recognised when control of the goods has passed to the customer, being the point in time that the goods are delivered to the customer. The amount of revenue recognised is based on an agreed price list and is not subject to any variations or warranties. Sale of Goods - Milk AWHI sells milk to a third-party

buyer. The milk revenue is recognised at the point in time that control is assumed by the buyer, being the date of collection. The amount of revenue recognised is based on the industry-accepted market price provided by the buyer. Sale of Goods - Wool AWHI sells wool to third-party buyers. The wool revenue is recognised at the point in time that control is assumed by the buyer, being the date the wool is collected, or the date the wool is sold at auction. The amount of revenue recognised is based on the industryaccepted market price provided by the buyer. Other Income Rental income is recognised on a straight line basis over the term of the lease. Dividends received are recognised on receipt, net of nonrefundable tax credits. The policy for recognition of revenue for Emissions trading units is described in policy (g) below. (b) Expenses Expenses are recognised on a functional basis in the period in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. (c) Trade Receivables Trade Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less impairment. To determine impairment, AWHI uses a simplified approach to assess its expected credit losses. The impairment loss is recognised in the profit and loss component of the Statement of Comprehensive Income. (d) Property, Plant & Equipment Items of property, plant and equipment, except for land, are measured on the cost basis and


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of property, plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. Land is revalued every three years to the most recent rateable value (consistent with the requirements of Te Ture Whenua MÄ ori Act 1993). Revaluations to rateable value are considered a departure from accounting standard NZIAS16 because ratings values are general rather than specific revaluations. Revaluations are reflected through Other Comprehensive Income and cumulative revaluations reflected in the PPE Revaluation Reserve. All other repairs and maintenance are recognised as expenses in the Statement of Comprehensive Income in the financial period in which they are incurred. The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold 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. Depreciation rates applied to classes of assets are: Class Land Buildings Bridges Development Improvements Plant & Machinery Furniture & Fittings Motor Vehicles

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

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

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the Statement of Comprehensive Income. (e) Income Tax The Incorporation is registered as a MÄ ori Authority for income tax purposes. Current income tax assets and/or liabilities comprise those obligations to, or claims from, Inland Revenue and other taxation authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint ventures is not provided if reversal of these temporary

differences can be controlled by the incorporation and it is probable that reversal will not occur in the foreseeable future. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future taxable income, based on the Incorporation's forecast of future operating results which is adjusted for significant non-taxable income and expenses and specific limits to the use of any unused tax losses or credit. Deferred tax liabilities are always provided in full. Deferred tax assets and liabilities are offset only when the incorporation has a right and intention to set off current tax assets and liabilities from the same taxation authority. Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in the profit or loss, except where they relate to items that are recognised in other comprehensive income (such as the revaluation of land) or directly in equity, in which case the related deferred tax is also recognised in other comprehensive income or equity, respectively. (f) Investments Investments in shares have been classified as fair value through other comprehensive income (OCI) for equity instruments. At balance date shares are revalued to fair value and any gains or losses reflected through other comprehensive income. (g) Intangible Assets (Emission Trading Units) Emission trading units have been purchased and earned off growing forestry.

51


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 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 (NZUs) and any shortfall not held by the owner must be purchased for surrender. As there is no intention to change the land use (native forest) AWHI recognises them initially at cost and revalues them at reporting date through other comprehensive income and reserves. Post-1989 Forest Land AWHI chose to enter the ETC for post -1989 forest land and earn NZUs as forests grow and carbon is stored in the forest from a 2008 baseline. NZUs are required to be returned to the Crown if the carbon stored in the specified area reduces. NZUs are initially recognised at cost and revalued to market value at reporting date through comprehensive income and reserves. If the obligation to return units arises the obligation is recognised on the Balance Sheet. Revenue recognition - on derecognition gains or losses from the carrying value relating to the trading of NZUs are reflected in Net Surplus and the carrying value is transferred from revaluation reserve to retained earnings. (h) Financial Instruments Financial assets and financial liabilities are recognised when 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 liabilities (other than financial assets and financial liabilities that are fair value through profit and loss) are added to or deducted from the fair value of the financial assets or financial liabilities as appropriate, on

52

initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit and loss are recognised immediately in the profit and loss. Financial Assets AWHI classifies its financial assets into the following categories: "amortised cost" and "fair value through OCI for equity instruments". The classification depends on the nature and purpose of the financial assets, is determined at the time of initial recognition and re-evaluated by management at every reporting date. All transactions are recognised (or derecognised) on trade date basis. Fair value through OCI for equity instrument financial assets held by AWHI include supplier shares which are issued at $1 and if surrendered are repaid at $1. Where shares are able to be traded on the listed or unlisted exchange these are reflected at market value. They also hold shares for which there are value changes, including Fonterra shares. These are reflected at values advised by Fonterra. Dividends on these financial assets are recognised in net surplus when AWHI's right to receive the dividends is established. Financial assets recognised at amortised cost are non-derivative financial assets that are held with the objective to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. These financial assets include trade and other receivables, and cash and cash equivalents and are measured at amortised cost using the effective interest rate, less any impairment. Impairment of financial assets: At reporting date management reviews financial assets for impairment using the expected credit loss model.

Any impairment loss is recognised in the profit and loss component of the Statement of Comprehensive Income. Financial Liabilities Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial liabilities. No financial liabilities are held at fair value through profit and loss. Other financial liabilities (including borrowings and trade and other payables) are initially recorded at cost and subsequently measured at amortised cost using the effective interest method. Due to the short term nature of trade and other payables these are not discounted. Borrowings are subsequently measured at amortised cost using the effective interest method. All borrowing costs are recognised as an expense in the period they are incurred. (i) Provisions Provisions are recognised when the entity has an obligation which can be reliably measured at balance date as a result of a past event and it is probable that the entity will be required to settle the obligation. Where the entity expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset only when the reimbursement is virtually certain. The expense relating to 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). (j) Development Expenditure Development costs are deferred


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 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. (k) Goods and Services Taxation (GST) All amounts are stated exclusive of goods and services tax (GST) except for accounts payable and accounts receivable which are stated inclusive of GST. (l) Investments in Associates and Joint Ventures Associates are those entities over which 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 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 or 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 associate and joint ventures. 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.

entitlements is recognised as a liability in the Balance Sheet. These benefits include salaries, wages and annual leave.

(m) Non-current assets held for sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is met when the asset (or disposal group) is available for immediate sale in present condition and the sale is highly probable. Management is committed to the sale which is expected to be completed within one year from the date of classification.

(q) Stock Feed and Inventory Stock feed on hand and other Inventories are stated at the lower of cost and net realisable value.

Non-current assets and disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. (n) Biological Assets Livestock are valued at their fair market value. Changes in the value of livestock are recognised in the Statement of Comprehensive Income. Value changes that form part of AWHI livestock management policies including animal growth and changes in livestock numbers are recognised in the Statement of Comprehensive Income within Revenue. Changes in value due to general livestock price movements are beyond AWHI's control. These value changes are recognised in the Statement of Comprehensive Income as gain/loss due to price changes on livestock. (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 BeneďŹ t The provision for employee

(r) Government Grants Government grants (relating to assets) are deducted in arriving at the carrying amount of the asset. (s) Changes in Accounting Policies and Disclosures The Group has had to change its accounting policies following the adoption of NZ IFRS 9 Financial Instruments and NZ IFRS 15 Revenue from Contracts with Customers. This has not resulted in any retrospective changes to the financial statements. 5. CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with NZ IFRS RDR requires the use of critical accounting estimates. It also requires management to exercise its judgement in the process of applying 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 below. 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 value of the assets.

53


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 6. REVENUE FROM CONTRACTS WITH CUSTOMERS 6a. Livestock Revenue

2019 $

2018 $

10,363,911

10,739,746

Sales Sheep Cattle Total Sales

6,456,840

6,282,368

16,820,751

17,022,114

Purchases Sheep

(1,198,115)

(854,589)

Cattle

(2,063,612)

(1,686,526)

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

6b. Apiary Revenue

-

(3,913)

(3,261,727)

(2,545,028)

3,333,259

1,204,915

16,892,283

15,682,000

2019 $

2018 $

30,000

2,112,420

Sales Honey sales Honey harvested Other apiary sales Purchases Total Apiary Revenue

2,510,154

-

-

624,000

-

(472,679)

2,540,154

2,263,741

After balance date a contract has been entered to sell $2,083,418 of honey to Oha Honey. Honey harvested includes the fair value gain on produce that has been harvested but not yet sold to customers. The fair value measurement for honey is categorised as a level 3 fair value based on inputs to the valuation techniques used. Management have made judgements and estimates to measure the fair value. Honey is valued using the market comparison technique, in which the values are based on the market price of honey dependent on the type of tested honey and its UMF factor.

7. OTHER INCOME 2019 $

2018 $

791,898

(7,732)

22,244

-

Insurance recoveries

205,513

-

Other income

169,358

72,400

Rebates received

245,684

164,581

1,434,697

229,249

Apiary leases Gain on sale of fixed assets

54


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 8. GAINS / (LOSSES) FROM SALE OF EMISSION TRADING UNITS 2019 $

2018 $

Gain / (loss) on disposal of emission trading units

190,000

199,100

Total Gains and (Losses)

190,000

199,100

2019 $

2018 $

190

55,255

Interest income

4,722

73

Total Finance Income

4,912

55,328

2019 $

2018 $

1,868,284

1,929,939

360,358

22,874

2,228,642

1,952,813

2019 $

2018 $

32,135

19,645

Accountancy, legal and consultancy

219,784

408,534

Administration expenses

755,166

547,248

Project expenses

590,246

186,070

1,597,331

1,161,497

2019 $

2018 $

(991,865)

(290,767)

336,386

2,443,526

(655,479)

2,152,759

9. FINANCE INCOME

Dividends received

10. DEPRECIATION & LOSS ON SALE

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

11. OTHER OPERATING EXPENSES

Audit Fees

Total Operating Expenses

12. EQUITY ACCOUNTED INVESTMENTS

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

55


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 13. INCOME TAX 13a. Income tax recognised in profit & loss

2019 $

2018 $

Deferred tax income relating to origination & reversal of temporary differences

(218,806)

(129,129)

Total income tax recognised in the current year

(218,806)

(129,129)

The income tax expense for the year reconciles to the accounting profit as follows: Net Surplus / (deficit) before income tax

(130,474)

998,250

(22,833)

174,694

(1,737)

(477,257)

- depreciation

(32,469)

176,728

- other temporary differences

181,912

69,036

- effect of carbon credit sales

-

208,863

- other permanent differences

(131,175)

(2,808)

6,302

(149,256)

Tax at the New Zealand tax rate applicable to Māori Authorities (17.5%) In calculating taxable income the following adjustments were made: Temporary differences - livestock

Permanent differences

Increase (decrease) in tax losses to carry forward

-

-

(218,806)

(129,129)

(218,806)

(129,129)

2019 $

2018 $

Deferred tax

(291,490)

(2,691,199)

Total income tax recognised in other comprehensive income

(291,490)

(2,691,199)

2019 $

2019 $

2019 $

Opening balance

Movement in profit & loss, other comp income or equity

Closing balance

(490,888)

(1,737)

(492,625)

(2,503,411)

(32,469)

(2,535,880)

67,718

(13,144)

54,574

1,705,591

67,713

1,773,304

Other

(1,341,081)

(93,033)

(1,434,114)

Total deferred tax liability

(2,562,071)

(72,670)

(2,634,741)

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

13b. Income tax recognised in other comprehensive income

13c. Income tax recognised in other comprehensive income Deferred tax assets & (liabilities) in relation to:

Livestock Property plant & equipment Provisions Unused tax losses

56


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019

14. CASH AND CASH EQUIVALENTS

Cash at bank / (overdrawn) Deposits on call

2019 $

2018 $

(253,901)

188,562

6,015

5,913

(247,886)

194,475

The incorporation has an overdraft facility of $1,000,000 and a credit card facility of $43,000.

15. STOCK ON HAND

2019 $

2018 $

587,107

381,701

Raw Materials Feed Hive making materials

426,949

30,000

Total Raw Materials

1,014,056

411,701

2,681,165

173,880

40,370

46,698

Total Merchandise

2,721,535

220,578

Total Stock on hand

3,735,591

632,279

2019 $

2018 $

16,212,006

14,297,837

Merchandise Honey Wool

16. BIOLOGICAL ASSETS

Sheep Balance at the beginning of the year Increase due to purchases Decrease due to sales Biological transformations

1,198,115

854,589

(10,363,911)

(10,739,746)

10,139,626

10,060,144

Changes in fair value

1,245,983

1,739,183

Total sheep on hand

18,431,819

16,212,006

Balance at the beginning of the year

16,541,359

17,397,993

Increase due to purchases Decrease due to sales

2,063,612 (6,456,840)

1,686,525 (6,282,366)

Biological transformations

4,783,202

5,533,030

Cattle (Dairy & Beef)

Changes in fair value Total cattle on hand Horses on hand Bees on Hand Total Livestock

138,838

(1,793,822)

17,070,170

16,541,359

15,000

7,213

958,460

560,765

36,475,449

33,321,342

57


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 16. BIOLOGICAL ASSETS (CONTINUED)

The livestock consists of mixed age sheep and cows which are held for dairy and dry stock farming. The units on hand were counted by management and independently by PGG Wrightson (PGG) as at 30 June of 2019 and 2018. A valuation was undertaken by S Luoni (employed by PGG) who determined the fair value of the sheep and cattle. The valuation is based on reference to market evidence of current prices less point of sale costs. PGG is an independent registered valuer not related to the incorporation. The valuers hold recognised and relevant professional qualifications and have recent experience in the category of biological asset they have valued.

2019 Units

2018 Units

MA Ewes

43,500

35,131

2-Tooth Ewes

10,481

17,447

Ewe Hoggets

20,812

18,893

Mixed Lambs

25,606

21,511

921

985

Quantity of Sheep on Hand

Breeding Rams MA Wethers

39

106

101,359

94,073

MA Cows

3,133

2,937

R4 Heifers

544

730

R3 Heifers

1,076

975

R2 Heifers

1,879

1,935

Heifer Calves

2,008

1,851

157

155

Quantity of Beef and Dairy Cattle on Hand

Breeding Bulls R3 Bulls

16

14

R3 Steers

890

921

R2 Steers

1,901

1,865

Steer Calves

58

1,828

1,733

13,432

13,116


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 17. INVESTMENTS IN ASSOCIATES & JOINT VENTURES 2019 $

2018 $

AWHI has the following investments in associates & joint ventures:

Papahau Forestry Partnership

Ownership & Voting

Basis

50%

Valuation

966,568

1,620,379

Te Hou Limited Partnership

33.33%

Cost

8,752,940

8,741,723

Te Hou GP Limited

33.33%

Cost

-

-

9,719,508

10,362,102

Te Hou Limited Partnership is based on audited financial statements. Papahau forestry partnership accounts are unaudited. The AWHI share of this forest investment is market valued by Stuart Orme, a RMNZIF Registered Forestry Consultant of Woodnet (2005) Limited. Realisation of this investment will require investment in a bridge. Accordingly, the valuation has factored in a bridge investment of $2.2m and a 50% share of this cost has been offset against the 50% value taken up for the indicative forest value advised by Stuart Orme. The bridge investment costs are based on enquiries with engineers to construct. 2019 $

2018 $

1,620,379

1,635,473

(653,811)

(15,094)

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

-

-

966,568

1,620,379

8,741,723

6,284,224

(325,169)

(258,737)

-

272,710

Te Hou Farms Limited Partnership Balance at the beginning of the year Share of surplus / deficit Development Capital contributions Revaluations Balance at the end of the year Classified as held for sale

336,386

2,443,526

8,752,940

8,741,723

-

-

Classified as non current assets

9,719,508

10,362,102

Total Investments in Associates & Joint Ventures

9,719,508

10,362,102

59


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 18. PROPERTY, PLANT & EQUIPMENT

As at 30 June 2019

Class

OPENING Acc Depn

Cost

Freehold Land

As at 30 June 2018 Bk Value

OPENING Acc Depn

Cost

105,230,000

-

105,230,000

87,119,700

-

87,119,700

11,490,400

-

11,490,400

7,871,400

-

7,871,400

Leasehold Land Improvements

5,269,969

832,115

4,437,854

4,849,572

790,165

4,059,407

16,574,996

2,131,658

14,443,338

15,324,049

2,049,560

13,274,489

Plant & Machinery

2,741,443

1,387,724

1,353,719

2,249,743

1,259,963

989,780

Motor Vehicles

3,267,715

1,299,464

1,968,251

2,715,058

1,060,131

1,654,927

Buildings & Bridges

Furniture & Fittings

837,483

587,025

250,458

827,672

538,428

289,244

22,287,831

17,626,739

4,661,092

21,168,980

16,459,078

4,709,902

167,699,837

23,864,725

143,835,112

142,126,174

22,157,325

119,968,849

24,510

-

24,510

-

-

-

167,724,347

23,864,725

143,859,622

142,126,174

22,157,325

119,968,849

Development Uncompleted Capital Works Total Property, Plant & Equipment

As at 30 June 2019 Class

Additions

Disposals

As at 30 June 2018

Revaluations

Freehold Land

-

-

Leasehold Land

-

-

-

Improvements

-

Depn & Amort

Additions

Disposals

Revaluations

-

-

-

18,110,300

-

-

-

3,619,000

Depn & Amort

-

-

-

-

34,623

-

-

420,397

41,950

1,086,799

196,043

-

103,345

372,127

-

878,820

82,098

Plant & Machinery

480,621

39,349

-

193,759

510,820

5,125

-

141,756

Motor Vehicles

433,116

140,843

-

474,768

964,035

202,832

-

447,877

Furniture & Fittings

133,551

1,021

-

41,669

9,811

-

-

48,597

Buildings & Bridges

Development Uncompleted Capital Works Total Property, Plant & Equipment

2,264,386

50,262

-

1,020,120

1,118,851

-

-

1,167,661

4,398,473

427,518

-

1,868,284

2,975,644

207,957

23,028,517

1,929,939

154,231

-

-

-

24,510

-

-

-

4,552,704

427,518

-

1,868,284

3,000,154

207,957

23,028,517

1,929,939

As at 30 June 2019 Class

Freehold Land Leasehold Land Improvements Buildings & Bridges

Cost

105,230,000

CLOSING Acc Depn

As at 30 June 2018 Bk Value

Cost

CLOSING Acc Depn

-

Bk Value

-

105,230,000

105,230,000

105,230,000

11,490,400

-

11,490,400

11,490,400

-

11,490,400

5,269,969

866,738

4,403,231

5,269,969

832,115

4,437,854

17,421,604

2,190,855

15,230,749

16,574,996

2,131,658

14,443,338

Plant & Machinery

3,092,160

1,490,928

1,601,232

2,741,443

1,387,724

1,353,719

Motor Vehicles

3,339,198

1,553,442

1,785,756

3,267,715

1,299,464

1,968,251

852,824

511,505

341,319

837,483

587,025

250,458

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

60

Bk Value

24,485,348

18,630,252

5,855,096

22,287,831

17,626,739

4,661,092

171,181,503

25,243,720

145,937,783

167,699,837

23,864,725

143,835,112

154,231

-

154,231

24,510

-

24,510

171,335,734

25,243,720

146,092,014

167,724,347

23,864,725

143,859,622


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 18. PROPERTY, PLANT & EQUIPMENT (CONTINUED) 18a. Land was revalued to latest general revaluation performed by Quotable Value Limited as at 1 July 2017 (Ruapehu District Council) and 1 September 2016 (Whanganui District Council). The valuation by Quotable Value ('ratings valuation') is considered a departure from accounting standard NZ IAS 16 primarily because ratings valuations are general rather than specific appraisals. 18b. Government grants under the Nga Whenua Rahui scheme have been deducted in arriving at capitalised fencing classed as development. 2019 Number of Shares

2018 Number of Shares

2019 $

2018 $

Ravensdown

500,000

500,000

500,000

500,000

Fonterra Co-operative Group

189,764

189,764

603,449

1,032,316

52,632

-

24,638

-

RAL Gondola Shares

1

-

500,000

-

Other share investments

-

-

34,896

8,386

1,662,983

1,540,702

19. SHARE INVESTMENTS

Headwaters Shares

Total Share Investments

The Fonterra shares have been revalued to their impaired value at 23 September 2019 of $3.18 per share.

20. INTANGIBLES (EMISSION TRADING UNITS) All units are NZUs

2019 Number of Units

2018 Number of Units

2019 $

2018 $

236,512

6,988,144

4,032,529

Additions

43,341

167,849

-

-

Disposals

(40,000)

(70,000)

(836,000)

(1,193,500)

-

-

1,665,656

4,149,115

337,702

334,361

7,817,800

6,988,144

2019 $

2018 $

Current

13,839,033

9,993,918

Non-Current

25,762,967

21,000,000

Total Borrowings

39,602,000

30,993,918

142,209,476

140,319,652

36,475,449

33,321,342

178,684,925

173,640,994

Balance at beginning of the year

Revaluations Balance at end of the year

334,361

21. BORROWINGS Secured

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 Māori Act 1993 requirements. The carrying value of assets pledged as security for borrowings are: Certificate WN7D/391 Livestock Total pledged assets

61


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019

22. PROGRAMMED PROPERTY MAINTENANCE 2019 $

2018 $

Current liabilities - included in Trade and other payables

174,524

124,344

Non current liabilities - Programmed property maintenance

366,723

149,157

541,247

273,501

The incorporation previously had entered into 7 agreements with Programmed Property Services Ltd (the contractor) for an agreed programme of work covering a 10 year period. The programme provides for exterior paint of farm buildings and farm houses, with regular maintenance in subsequent years. The agreements had total annual payments of $124,344 (gst excl.). During the 2019 year two agreements were cancelled and two new agreements were formed changing the annual payment to approximately $174,524 (gst excl.) The liability is a best estimate of the actual amount of work performed by the contractor for which the contractor has not been paid at balance sheet date. The liability has not been adjusted for inflation and the effect of the time value of money.

23. LIMITED PARTNERSHIP DEFERRED CAPITAL CONTRIBUTION 2019 $

2018 $

-

2,066,666

Capital contribution liability

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. This was paid in 2019.

24. UNCLAIMED DIVIDENDS

Balance at beginning of the year Dividend declared

62

2019 Cents per share

2018 Cents per share

-

-

2019 $

2018 $

2,153,205

2,119,923

65

55

816,741

691,089

Dividends paid

-

-

(623,598)

(657,807)

Total Unclaimed Dividends

-

-

2,346,348

2,153,205


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019

25. FINANCIAL INSTRUMENTS

Financial Assets 2019 Trade and other receivables (GST excl.)

Amortised Cost $

Financial Liabilities 2019

Fair Value through Other Comp Inc $

$

Total $

1,883,599

-

-

1,883,599

-

-

1,662,983

1,662,983

1,883,599

-

1,662,983

3,546,582

Investment in shares Total Financial Assets

Cost

Amortised Cost $

Cost

Fair Value through Other Comp Inc $

$

Total $

Cash and cash equivalents

247,886

-

-

247,886

Trade and other payables (GST excl.)

984,981

-

-

984,981

Borrowings

39,602,000

-

-

39,602,000

Total Financial Liabilities

40,834,868

-

-

40,834,868

Financial Assets 2018 Cash and cash equivalents Trade and other receivables (GST excl.)

Amortised Cost $

Financial Liabilities 2018 Trade and other payables (GST excl.) Te Hou LP deferred contribution

Fair Value through Other Comp Inc $

$

Total $

194,475

-

-

194,475

2,573,559

-

-

2,573,559

-

-

1,540,702

1,540,702

2,768,034

-

1,540,702

4,308,736

Investment in shares Total Financial Assets

Cost

Amortised Cost $

Cost

Fair Value through Other Comp Inc $

$

Total $

1,312,034

-

-

1,312,034

2,066,666

-

-

2,066,666

Borrowings

30,993,918

-

-

30,993,918

Total Financial Liabilities

34,372,618

-

-

34,372,618

2019 $

2018 $

26. MĀORI AUTHORITY CREDIT ACCOUNT

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

365,329

364,889

13,404,399

14,221,140

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

63


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 27. RELATED PARTIES Year end receivable or (payable)

Payments received or (paid) during the year

2019 $

2018 $

2019 $

2018 $

-

(20,000)

(432,827)

(360,000)

-

-

-

5,856

-

-

(2,609)

(2,609)

-

-

(630)

(2,630)

-

-

(150)

(7,418)

-

-

(7,705)

-

(500)

-

(444,421)

(366,801)

a) Te Āti Hau Trust Donations to the Trust AWHI is the settlor of Te Āti Hau Trust and appoints the trustees (3 from the AWHI Committee and 2 Independents). The results of the Trust have not been consolidated as the effect would be immaterial. b) Kaahu Estate Ltd (W Murphy-Peehi (CoM) is a Shareholder and director)

AWHI sold consumables and labor to Kaahu Estate Ltd in 2018. In 2017 AWHI managed hives on behalf of Kaahu Estate Ltd on their land and the income resulting from the produce of those hives was shared. c) Ngā Tangata Tiaki ( K Ponga & R Tinirau (CoM) are Trustees) AWHI paid sponsorship for an Iwi Chairs forum. d) Ngāti Rangi Trust (S Amner & K Ponga (CoM) are Trustees) AWHI made payment to Ngāti Rangi Trust during the year for room hire. e) Ruapehu Recruitment (S Amner (CoM) is the Director) AWHI made payments to Ruapehu Recruitment Ltd for contracted labour. f) SA Consulting (S Amner is the Managing Director) AWHI made payments to SA Consulting for assistance with grant funding. g) Intugen Limited (C Wilson is the Managing Director) AWHI made payments to Intugen for the 50th year book.

-

(20,000)

Related Party Transactions with Associates & Joint Ventures

Te Hou Farms Limited Partnership is an associate of, and has shared Governance with, AWHI. The total interest in Te Hou Limited Partnership is $8,752,940 (2018: $8,741,723) as disclosed in note 17. During the period AWHI made payments of $2,066,666 to fulfil their contracted capital contribution requirement (see note 23). No additional development capital contributions were made during the period (2018: $272,710). AWHI has a joint venture investment in Papahau Forestry Partnership. The total interest in Papahau Forestry Partnership is $966,568 (2018: 1,620,379), as disclosed in note 17. During the period AWHI made payments of $12,885 (2018: nil) for insurance, marketing and rates.

Key Management Personnel Compensation Key management of the Incorporation are the members of the Committee of Management, the Chief Executive Officer, Finance Manager, Business Manager, People & Safety Manager and the Station Managers. Total Key Management Personnel remuneration

64

2019 $

2018 $

1,870,507

1,604,857


Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 28. CONTINGENT LIABILITIES

2019 $

2018 $

13,490,362

11,343,203

13,490,362

11,343,203

2019 $

2018 $

96,948

98,935

86,156

80,860

Later than one year and less than five years

228,351

123,183

Later than five years

282,186

-

596,693

204,042

2019 $

2018 $

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 the ETS. Management have no plans to change land use at this time which would trigger such a liability. The forest on affected land is insured against forest fire. There is also a contingent liability relating to two employment disputes, which is unable to be quantified. Total

29. SUBSEQUENT EVENTS There have been no subsequent events after year end (2018: Nil).

30. 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 Not later than one year

31. COMMITMENTS FOR EXPENDITURE Commitments for the acquisition of property, plant and equipment Commitments for the acquisition of share investments

-

198,446

114,174

-

114,174

198,446

$114,174 of Alliance Group Limited (Alliance) shares are required to be purchased to fulfil shareholding requirements. This amount will gradually be deducted from any future livestock sales to Alliance.

32. CAPITAL Number of shares (fully paid)

2019 Number

1,256,529

2018 Number

1,256,529

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

33. RESERVES Retained Earnings Retained Earnings comprise the Incorporations accumulated net profits less dividends paid. Capital Reserves Capital Reserves represent realised capital profits predominantly arising from Crown grants. PPE revaluation reserve The property reserve arises on the revaluation of land and buildings. When revalued land and buildings are sold, the proportion of the property 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. Share Reserve The Available For Sale share reserve represents unrealised revaluations of share investments.

65


SILKS AUDIT

PO Box Box 7144 7144 PO Whanganui 4541 4541 Whanganui New Zealand Zealand New

Chartered Accountants Limited

T: (06) (06) 345 345 8539 8539 T: F: (06) (06) 345 345 2212 2212 F: ctown@silks.co.nz E: ctown@silks.co.nz www.silksaudit.co.nz www.silksaudit.co.nz

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF ĀTIHAU WHANGANUI INCORPORATION TO THE MEMBERS OF ĀTIHAU-WHANGANUI INCORPORATION

Opinion We have audited the financial statements of Ātihau Whanganui Incorporation (the Incorporation) on pages 38 46 to 57, 65, which comprise the statement of financial position as at 30 June 2018, 2019, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the possible effects of the matters described under the Basis for Opinion section, the accompanying financial statements present fairly, in all material respects, the financial position of the Incorporation as at 30 June 2018, 2019, and its financial performance and its cash flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR). Basis for Qualifi ed Opinion on Financial Position Basis for Qualifi ed Opinion on Financial Position As disclosed in the accounting policy on page 42 to the financial statements, the land and buildings are reported at the latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial Reporting Standards – NZ IAS 16 Accounting for Property, Plant & Equipment, which, when the revaluation model is chosen for property, plant and equipment, require such assets to be stated at fair value at the date of the revaluation less any subsequent accumulated depreciation and impairment losses. Consequently, we were unable to determine whether any adjustment to these amounts was necessary, which affects the gross carrying amount of land and buildings, their accumulated depreciation, depreciation expense, revaluation increases/ decreases and shareholders' equity. We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other than in our capacity as auditor we have no relationship with, or interests in, the Incorporation. Emphasis of Matter As disclosed in note 15 to the financial statements the incorporation undertook a valuation of the Papahua Forestry. The of the bridge which creates a material uncertainty as to the value.provided Due to this valuation excluded included the cost incorporations 50 construction percent share of the cost of the bridge construction. Theforest estimated to uncertainty no adjustment has been made for the carrying value of thewhich Papahua Forestry partnership investment. We have the incorporation had a variation range of approximately 10% to 15% creates a material uncertainty as to the closing not modifi ed our respect ofathis matter. forest value. Dueopinion to this in uncertainty further adjustment maybe required to the carrying value of the Papahua Forestry partnership investment. We have not modified our opinion in respect of this matter.

Principals: Cameron Town, Talia Anderson-Town.

Whanganui

58 66

Taranaki

Manawatu

Central Plateau

Auckland Auckland


ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019

SILKS AUDIT

PO Box Box 7144 7144 PO Whanganui 4541 4541 Whanganui New Zealand Zealand New

Chartered Accountants Limited

T: (06) (06) 345 345 8539 8539 T: F: (06) (06) 345 345 2212 2212 F: E: ctown@silks.co.nz ctown@silks.co.nz E: www.silksaudit.co.nz www.silksaudit.co.nz

INDEPENDENT AUDITOR’S REPORT Trustees Responsibilities for the Financial Statements TO THE MEMBERS OF ĀTIHAU-WHANGANUI INCORPORATION The Trustees are responsible on behalf of the Incorporation for the preparation and fair presentation of the financial statements in accordance with NZ IFRS RDR, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Opinion We have audited financial statementsthe of Ātihau Whanganui Incorporation (the Incorporation) on pagesfor38assessing to 57, which In preparing the the financial statements, Trustees are responsible on behalf of the Incorporation the comprise the statement financialas position as concern, at 30 June 2018, andasthe statementmatters of comprehensive income, statement Incorporation’s ability toofcontinue a going disclosing, applicable, related to going concern and of changes in equity and statement of cash flows for the then ended, and notes to the fithe nancial statements, using the going concern basis of accounting unless theyear Trustees either intend to liquidate Incorporation or including to cease aoperations, summary of accounting policies. or signifi have cant no realistic alternative but to do so. In our opinion, except for the possible effectsof of the the matters described under the Basis for Opinion section, the accompanying Auditors Responsibilities for the Audit Financial Statements fiOur nancial statements fairly, in all assurance material respects, the financial positionstatements of the Incorporation 30from Junematerial 2018, objectives are topresent obtain reasonable about whether the financial as a whole as areatfree and its financialwhether performance owstoforissue the an year then ended accordance with New Zealand equivalents to misstatement, due to and frauditsorcash error,fland auditor’s reportinthat includes our opinion. Reasonable assurance International Reporting Reduced Regime (NZ IFRS RDR). with ISAs (NZ) will always detect a is a high levelFinancial of assurance, but isStandards not a guarantee thatDisclosure an audit conducted in accordance material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually Basis for Qualifi ed Opinion on Financial Position or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of As disclosed the accounting policy on page 42 to the financial statements, the land and buildings are reported at the these financialinstatements. latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial Reporting NZthe IAS 16 Accounting for Property, Plantthose & Equipment, when the revaluation model is chosen A detailed Standards description–of auditors’ responsibilities including related towhich, assessment of risk of material misstatement, for property, and equipment, require suchassumptions assets to be stated at fair value at the date are of the revaluation any evaluation of plant appropriateness of going concern and determining key audit matters available on theless external subsequent accumulated reporting board website: depreciation and impairment losses. http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-8/ Consequently, we were unable to determine whether any adjustment to these amounts was necessary, which affects the gross Othercarrying Matter amount of land and buildings, their accumulated depreciation, depreciation expense, revaluation increases/ decreases andstatements shareholders' equity.Whanganui Incorporation for the year ended 30 June 2017 were audited by another The financial of Ātihau auditor who expressed a modified opinion for the use of Rateable Value to value the land and buildings on those statements We conducted audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities on 20 Octoberour 2017. under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Report on other Legal and Regulatory requirements Code of Ethics for Assurance issued by theby New Zealand Assurance Standards Boardhas andbeen the The Share Register and IndexPractitioners of Shareholders required Section 263Auditing of the Teand Ture Whenua Maori Act 1993, International Standards for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we compiled andEthics correctly kept byBoard the Incorporation. have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained Restriction on Distribution or Useis sufficient and appropriate to provide a basis for our opinion. This report is made solely to the Shareholders, as required by section 277 of the Te Ture Whenua Maori Act. Our audit Other thanundertaken in our capacity as auditor westate haveto nothe relationship with, orshareholders interests in, those the Incorporation. has been so that we might Incorporation’s matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume Emphasis ofto Matter responsibility anyone other than the Incorporation Shareholders, as a body, for our audit work, for this report, or for the As disclosed in note 15 to the financial statements the incorporation undertook a valuation of the Papahua Forestry. The opinions we have formed. valuation excluded the cost of the bridge construction which creates a material uncertainty as to the forest value. Due to this uncertainty no adjustment has been made for the carrying value of the Papahua Forestry partnership investment. We have not modified our opinion in respect of this matter.

Silks Audit Chartered Accountants Ltd Whanganui, New Zealand Date: 11 October 2019

Principals: Principals: Cameron Cameron Town, Town, Talia Talia Anderson-Town. Anderson-Town.

Whanganui

58

Taranaki

Manawatu Manawatu

Central Central Plateau Plateau

Auckland Auckland

67


68


Te Āti Hau Trust Financial Statements for the year ended 30 June 2019

69


Te Āti Hau Trust FINANCIAL STATEMENTS 2019

CONTENTS 71

Entity Information

72

Statement of Service Performance

73

Statement of Financial Performance

74

Statement of Financial Position

75

Statement of Cash Flows

76

Notes to and forming part of the Financial Statements

76 1 Statements of Accounting Policies 76 2 Donantions, Fundraising and Other Similar Renevue 77 3 Interest, Dividends and Other Investment Revenue 77 4 Volunteer and Employee Related Costs 77 5 Costs related to Providing Goods or Services 77 6 Grants and Donations 78 7 Other Expenses 78 8 Property, Plant & Equipment 78 9 Trust Capital 79 10 Accumulated Funds 79 11 Related Party Information 79 12 Tribal Purposes 79 13 Commitments 79 14 Contingent Liabilities and Guarantees 79 15 Events Occurring After Balance Date 80

70

Auditors' Report


Te Āti Hau Trust ENTITY INFORMATION As at 30 June 2019 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

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

Beneficiary

Ātihau Shareholders & Stakeholders

Main Sources of Cash and Resources

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

GST

Not Registered

Accountants

Balance Chartered Accountants Limited Chartered Accountants 16 Bell Street Whanganui

Auditor

Silks Audit Chartered Accountants Whanganui

Bankers

Bank of New Zealand Whanganui

Solicitors

Horsley Christie Whanganui

IRD Number

102-612-817

Registered Charity Number

CC41172

The Trustees are pleased to present the approved Performance Report including the historical Performance Report of Te Āti Hau Trust for the year ended 30 June 2019. For and on behalf of the Trustees:

Keria Ponga Trust Chairperson 26 September 2019

Aaron Rice-Edwards Trustee 26 September 2019

71


Te Āti Hau Trust STATEMENT OF SERVICE PERFORMANCE For the Year Ended 30 June 2019 Description of Trust's 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 Māori cultural development and support, educational and vocational development and support, social development and support, marae development and support, health and welfare development and support, and the fostering of strategic alliances with persons promoting or assisting with any of these objects. The grants are made under the following guiding principles: Mātauranga Education Kotahitanga Unity of Purpose Manaakitanga Nurture and reciprocate Whanaungatanga Collaboration Rangatiratanga Leadership Wairuatanga Spirituality Mana Whenua Responsibility to the land and the people Kaitiakitanga Active stewardship Mana Tūpuna Legitimacy Te Reo Identity

Grants Made Actual 2019 Number

Actual 2018 Number

Actual 2019 $

Actual 2018 $

Sports Art and Travel

23

35

14,822

13,930

Cultural

13

13

31,000

33,095

Marae

1

5

15,000

57,650

Community

5

-

8,000

-

Tangihanga tent

66

66

19,800

19,800

Kaumātua Assistance

47

28

42,276

22,820

155

147

130,898

147,295

General Grants

Education Grants Tertiary - Undergraduate Full Time

154

127

90,551

76,942

Medical

41

28

27,700

21,800

Secondary School - Year 10 and 11

57

61

14,250

15,250

1

3

1,000

2,800

31

13

41,050

18,400

1

2

3,000

6,000

PHD

-

2

-

6,000

Overseas Grants

4

2

7,600

3,700

High Performance Post Graduate Agriculture

Balance / Deloitte

72

1

-

1,000

-

290

238

186,151

150,892

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


Te Āti Hau Trust STATEMENT OF FINANCIAL PERFORMANCE For the Year Ended 30 June 2019

Note

Actual 2019 $

Actual 2018 $

Donations, fundraising and other similar revenue

2

432,827

360,000

Interest, dividends and other investment revenue

3

Revenue

Total Revenue

23

14

432,850

360,014

Less Expenses Volunteer and employee related costs

4

20,175

8,825

Costs related to providing goods or services

5

62,972

43,214

Grants and donations

6

317,048

298,187

Other expenses

7

206

4,364

400,401

354,590

32,449

5,424

Total Expenses Surplus

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

73


Te Āti Hau Trust STATEMENT OF FINANCIAL POSITION As at 30 June 2019

Note

2019 $

2018 $

Trust Capital

38,264

5,815

Total Accumulated Funds

38,264

5,815

83,284

52,290

-

20,000

83,284

72,290

396

602

83,680

72,892

Creditors and Accrued Expenses

45,416

67,077

Total Liabilities

45,416

67,077

Net Assets

38,264

5,815

Accumulated Funds

Represented by: Current Assets Cash & Bank Balances Debtors and Prepayments Total Current Assets Non-Current Assets Property, Plant & Equipment

8

Total Assets Current Liabilities

For and on behalf of the Trustees:

Keria Ponga Trust Chairperson 26 September 2019

74

Aaron Rice-Edwards Trustee 26 September 2019

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


Te Āti Hau Trust STATEMENT OF CASH FLOWS For the Year Ended 30 June 2019

Note Cash Flows from Operating Activities

2019 $

2018 $

452,827

440,001

Cash was received from: Donations, fundraising and other similar revenue Interest, dividends and other investments

22

14

452,849

440,015

79,682

56,018

342,173

345,257

421,855

401,275

Net Cash Flows from Operating Activities

30,994

38,740

Net Increase in Cash Held

30,994

38,740

Cash at the Beginning of the Year

52,290

13,550

Cash at the End of the Year

83,284

52,290

83,284

52,290

Cash was applied to: Payments to suppliers and employees Donations and grants paid

This is represented by: Cash & Bank Balances

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

75


TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019

1. STATEMENT OF ACCOUNTING POLICIES Statement of Compliance and Basis of Preparation Te Āti Hau Trust is eligible to apply Tier 3 PBE Accounting Requirements : 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 accrued, gross of refundable tax credits received. b) Expenses Expenses have been classified by their business function. Grant expenses are recognised when approved by the trustees. c) Trade Receivables Trade Receivables are recognised at estimated realisable value. d) Property, Plant & Equipment Property, plant and equipment is recognised at cost less aggregate depreciation. Historical cost includes expenditure directly attributable to the acquisition of assets, and includes the cost of replacements that are eligible for capitalisation when these are incurred.

All other repairs and maintenance are recognised as expenses in the Statement of Financial Performance in the financial period in which they are incurred. Depreciation has been calculated using rates appropriate to spread the cost of the asset less any residual value over its useful life. The following estimated depreciation rates/useful lives have been used: Office Equipment 13 - 50% Gains and losses on disposal of fixed assets are taken into account in determining the net result for the year. e) Income Tax The Trust has charitable status and is exempt from income tax. 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 There have been no changes in accounting policies. All policies have been applied on a basis consistent with those from the previous performance report.

2. DONATIONS, FUNDRAISING AND OTHER SIMILAR REVENUE

76

2019 $

2018 $

Ātihau-Whanganui Incorporation Tribal Purposes Distributions

432,827

360,000

Total Donations, fundraising and other similar revenue

432,827

360,000


TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019

3. INTEREST, DIVIDENDS AND OTHER INVESTMENT REVENUE

Interest Received - Gross Total Interest, dividends and other investment revenue

2019 $

2018 $

23

14

2019 $

2018 $

23

14

4. VOLUNTEER AND EMPLOYEE RELATED COSTS

Trustee Fees

20,175

8,825

Total Volunteer and employee related costs

20,175

8,825

2019 $

2018 $

5. COSTS RELATED TO PROVIDING GOODS OR SERVICES

Administration

58,780

41,928

Bank Fees & Charges

-

40

Charities Commission

51

51

Committee Expenses

1,740

1,195

Website & Branding

2,401

-

62,972

43,214

2019 $

2018 $

Total Costs related to providing goods or services

6. GRANTS AND DONATIONS

Tangihanga Koha

19,800

19,800

Sport, Art & Travel

14,821

13,930

Cultural

31,000

33,095

Kaumātua Assistance

42,276

22,820

Marae

15,000

57,650

8,000

-

Tertiary Full Time

Community

91,000

77,412

Secondary Yr 10 & Yr 11

14,250

15,250

High Performance Medical PHD Overseas Agriculture Post Graduate Balance Deloitte Grant

1,000

2,800

27,700

21,800

-

6,000

7,600

3,700

3,000

6,000

41,050

18,400

1,000

-

Grants - Returned/Recovered

(449)

(470)

Total Grants and Donations

317,048

298,187

77


TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019 7. OTHER EXPENSES 2019 $

Audit Fees

2018 $

-

3,979

Depreciation

206

385

Total Other Expenses

206

4,364

8. PROPERTY, PLANT & EQUIPMENT Property, Plant & Equipment 2019

Office Equipment

Opening Carrying Amount $

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

Closing Carrying Amount $

GDPro Database Software

239

-

120

119

Filing Cabinet

258

-

34

224

52

-

26

26

HP Laptop case and configuration Microsoft Office and Remote User Networks

53

-

26

27

602

-

206

396

Total Property, Plant & Equipment

602

-

206

396

Property, Plant & Equipment 2018

Opening Carrying Amount $

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

Closing Carrying Amount $

Office Equipment GDPro Database Software

479

-

240

239

Filing Cabinet

297

-

39

258

HP Laptop case and configuration

105

-

53

52

Microsoft Office and Remote User Networks

Total Property, Plant & Equipment

106

-

53

53

987

-

385

602

987

-

385

602

9. TRUST CAPITAL

78

2019 $

2018 $

Trust Capital

100

100

Total Trust Capital

100

100


TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019 10. ACCUMULATED FUNDS 2019 $

2018 $

Surplus / (Deficit) for the year

32,449

5,424

Total Accumulated Funds

38,164

5,715

Balance at beginning of the year

5,715

291

11. 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. During the year there were no services provided to the Trust by related parties. (2018: Nil). 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.

12. TRIBAL PURPOSES Ātihau-Whanganui Incorporation annually distribute funds to the Trust which is used to distribute for charitable purposes. During the year $432,827 was granted.

13. COMMITMENTS The trust has no commitments as at 30 June 2019, (2018 Nil).

14. CONTINGENT LIABILITIES AND GUARANTEES The trust has no contingent liabilities and no guarantees as at 30 June 2019. (2018: Contingent Liabilities Nil. Guarantees Nil.)

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

79


TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019

SILKS AUDIT Chartered Accountants Limited

PO Box Box 7144 7144 PO Whanganui 4541 4541 Whanganui New Zealand Zealand New T: (06) (06) 345 345 8539 8539 T: F: (06) (06) 345 345 2212 2212 F: ctown@silks.co.nz E: ctown@silks.co.nz www.silksaudit.co.nz www.silksaudit.co.nz

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ĀTIHAU-WHANGANUI INCORPORATION

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TE ĀTI HAU TRUST Opinion We have audited the financial statements of Ātihau Whanganui Incorporation (the Incorporation) on pages 38 to 57, which comprise the statement of financial position as at 30 June 2018, and the statement of comprehensive income, statement Report on the Audit of the Financial Statements of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. Opinion We have audited the financial statements of Te Ati Hau Charitable Trust (the Trust) on pages 71 to 79, which comprise the In our opinion, except for the possible effects of the matters described under the Basis for Opinion section, the accompanying statement of financial position as at 30 June 2019, and the statement of financial performance and statement of cash flows financial statements present fairly, in all material respects, the financial position of the Incorporation as at 30 June 2018, for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. and its financial performance and its cash flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Trust as at 30 June 2019, and its financial performance and its cash flows for the year then ended in accordance with Public Basis for Qualifi ed Opinion on Financial Position Benefit Entity Simple Format Reporting Standard (Not-For-Profit). As disclosed in the accounting policy on page 42– Accrual to the financial statements, the land and buildings are reported at the

latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial Basis for Standards Opinion – NZ IAS 16 Accounting for Property, Plant & Equipment, which, when the revaluation model is chosen Reporting We conducted our audit in accordance with International on Auditing (New at Zealand) (ISAs Our responsibilities for property, plant and equipment, require such assetsStandards to be stated at fair value the date of (NZ)). the revaluation less any under those accumulated standards are further described in the Auditor’s subsequent depreciation and impairment losses. Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Trust in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics we for were Assurance by the ZealandtoAuditing and Assurance Standards Board and the the Consequently, unablePractitioners to determineissued whether any New adjustment these amounts was necessary, which affects International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we gross carrying amount of land and buildings, their accumulated depreciation, depreciation expense, revaluation increases/ have fulfilledand ourshareholders' other ethical equity. responsibilities in accordance with these requirements and the IESBA Code. We believe that decreases the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities Other our capacity as auditor we have no relationship with, or interests in, the Trust. under than thoseinstandards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Other information Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the The TrusteesEthics is responsible behalfforofAccountants’ the Trust for Code the other information. The other information(IESBA comprises the Entity International StandardsonBoard of Ethics for Professional Accountants Code), and we information and Statement of service performance but does not include the financial statements and our auditor’s report have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that thereon. the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our opinion thecapacity financialas statements the other information and not express any form of assurance Other than inonour auditor wedoes havenot no cover relationship with, or interests in,we thedo Incorporation. conclusion thereon. Emphasis of Matter In our15audit of the financial statements, our responsibility is to read the otherofinformation and,Forestry. in doingThe so, Asconnection disclosed inwith note to the financial statements the incorporation undertook a valuation the Papahua consider information materially inconsistent with the financial statements knowledge obtained valuation whether excludedthe theother cost of the bridgeisconstruction which creates a material uncertainty as to or theour forest value. Due to this in the audit no or otherwise to made be materially misstated. If based, the work we have performed, we conclude that uncertainty adjustmentappears has been for the carrying value of the on Papahua Forestry partnership investment. We have there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in not modifi ed our opinion in respect of this matter. this regard.

Principals: Cameron Town, Talia Anderson-Town.

Whanganui Whanganui

58 80

Taranaki Taranaki

Manawatu Manawatu

Central Plateau Plateau

Auckland Auckland


SILKS AUDIT

PO Box Box 7144 7144 PO Whanganui 4541 4541 Whanganui New Zealand Zealand New

Chartered Accountants Limited

T: (06) (06) 345 345 8539 8539 T: F: (06) (06) 345 345 2212 2212 F: E: ctown@silks.co.nz ctown@silks.co.nz E: www.silksaudit.co.nz www.silksaudit.co.nz

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ĀTIHAU-WHANGANUI INCORPORATION

Trustees’ Responsibilities for the Financial Statements The Trustees are responsible on behalf of the Trust for the preparation and fair presentation of the financial statements in accordance with Public Benefit Entity Simple Format Reporting Standard – Accrual (Not-For-Profit), and for such internal Opinion control the directors determine is necessary to enable the preparation of financial statements on thatpages are free We haveasaudited the financial statements of Ātihau Whanganui Incorporation (the Incorporation) 38 from to 57,material which misstatement, whether due to fraudposition or error.as at 30 June 2018, and the statement of comprehensive income, statement comprise the statement of financial

of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including preparingofthe financial statements,policies. the Trustees are responsible on behalf of the Trust for assessing the Trust’s ability to aInsummary signifi cant accounting continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of our accounting unless for thethe Trustees either intend to matters liquidatedescribed the Trust under or to cease operations, or section, have no the realistic alternative In opinion, except possible effects of the the Basis for Opinion accompanying but to do so. financial statements present fairly, in all material respects, the financial position of the Incorporation as at 30 June 2018, and its financial performance and its cash flows for the year then ended in accordance with New Zealand equivalents to Auditors Responsibilities for the Audit of the Financial Statements International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR). Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance Basis for Qualifi ed Opinion on Financial Position is adisclosed high level of but ispolicy not aon guarantee an audit conducted in accordance with buildings ISAs (NZ)are will reported always detect As in assurance, the accounting page 42that to the financial statements, the land and at thea material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial or in the aggregate, reasonably befor expected toPlant influence the economic decisions users taken on the basis of Reporting Standardsthey – NZcould IAS 16 Accounting Property, & Equipment, which, when theofrevaluation model is chosen these financial statements. for property, plant and equipment, require such assets to be stated at fair value at the date of the revaluation less any

subsequent accumulated depreciation and impairment losses. A further description of the auditors responsibilities for the audit of the financial statements is located at the External Reporting Board’s website at: to determine whether any adjustment to these amounts was necessary, which affects the Consequently, we were unable http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-8/ gross carrying amount of land and buildings, their accumulated depreciation, depreciation expense, revaluation increases/ decreases and shareholders' equity. We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we Silksfulfi Audit have lled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that Chartered Accountants Ltd obtained is sufficient and appropriate to provide a basis for our opinion. the audit evidence we have Whanganui, New Zealand Date: 26 September 2019as auditor we have no relationship with, or interests in, the Incorporation. Other than in our capacity Emphasis of Matter As disclosed in note 15 to the financial statements the incorporation undertook a valuation of the Papahua Forestry. The valuation excluded the cost of the bridge construction which creates a material uncertainty as to the forest value. Due to this uncertainty no adjustment has been made for the carrying value of the Papahua Forestry partnership investment. We have not modified our opinion in respect of this matter.

Principals: Principals: Cameron Cameron Town, Town, Talia Talia Anderson-Town. Anderson-Town.

Whanganui Whanganui

58

Taranaki Taranaki

Manawatu Manawatu

Central Central Plateau Plateau

Auckland Auckland

81


GLOSSARY OF TERMS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

82

Liability: General term for what AWHI owes

Provision for Dividend: Allowance for a Dividend distribution to AWHI shareholders Revaluation of Shares: Difference in the market value of shares that AWHI holds in other companies at this balance date compared to the previous year. Revaluation of Livestock: The livestock price movement being the livestock value at year end versus opening values less the amount attributed to change in livestock numbers Soil Moisture Deficit: Deficit between the actual amount of water in a soil versus its water holding capacity Statement of Cash-flow: Shows the cash movements for the year in Operating, Investing and Financing categories Statement of Financial Performance: Shows how well AWHI has performed in its trading activities. Statement of Movements in Equity: Reports the change in AWHI’s ownership interest in the year Statement of Financial Position: "A snapshot" in time that reflects where the money has come from (Equity + Liabilities) and how the money has been used (Assets) Stock on hand: Inventory of goods held for resale or for AWHI’s use, including livestock Stock Units: Livestock in NZ are commonly given a “stock unit” (su) value or measure. The basic unit (1 su) is one breeding ewe that weighs 55kgs; bears 1 lamb; and consumes approx. 550 kilograms of dry matter each year. A beef breeding cow is commonly given a value of 6 su. Stock units have a number of uses e.g. to determine how much feed is required; the stocking rate of a farm, etc. Store (livestock): A term used to describe animals destined for “finishing” that are sold off country, which does not have the potential to finish them, to specialist “finishing” operations on easier more productive country Supplements: Additional animal feed often in the form of conserved hay, silage fodder crops (greenfeeds and brassica crops) or concentrates such as grains or meals Term Liabilities: A liability of AWHI which is generally due to be settled more than 12 months after balance date Unclaimed Dividends Due – Te Āti Hau Trust: Funds relating to unclaimed dividends from the previous year which are advanced to Te Āti Hau Trust to invest Weaner: A young animal that has been weaned from its mother’s milk, capable of living completely on pasture Yield (carcass): Proportion of 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


NOTES

83 83


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Toi tu te whenua

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

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