2012 Te Runanga o Ngāti Awa Annual Report

Annual Report TE RŪNANGA O NGĀTI AWA

2011-2012

2011 -2012

Annual Report 2011-2012

2

CONTENTS 4

Chairman’s Report

6

Board of Representatives 2011-2012

8

Chief Executive Elect Profile

10

Interim Chief Executive Report

12

Board of Representatives Fees and Other Payments

13

Ngäti Awa Group Holdings Limited and Ngäti Awa Asset Holdings Limited

16

Policy, Strategy and Research

18

Development Ngäti Awa

22

Environment Ngäti Awa

24

Ngäti Awa Research and Archives Trust and Whakapapa Committee

26

Ngäti Awa Customary Fisheries Authority

27

Te Kähui Kaumätua

28

Financial Statements

29

Statements of Comprehensive Income

30

Statements of Changes in Equity

31

Statements of Financial Position

32

Statements of Cash Flows

33

Notes to the Financial Statements

65

Directory of Officers

66

Auditors’ Report

68

Te Whare Wänanga o Awanuiärangi

69

Te Reo Irirangi o Te Mänuka Tütahi Trust

70

Ngäti Awa Social and Health Services

71

Ngäti Awa Tertiary Training Organisation

23

Annual Report 2011-2012

TE RÜNANGA O NGÄTI AWA

CHAIRMAN’S REPORT Whakapakaritia te reo me ngā tikanga ō Ngāti Awa kia mau hei taonga mō ake tonu atu kia kore ai e tihoihoi ki te makihoi kei reira ka mānukanuka ki tōna manauhea ko te whakamutunga, ko whatungarongaro

Embrace the language and customs of Ngāti Awa Treasure their intrinsic values in perpetuity Else they will become a casualty of decay And therefore disappear into obscurity

E nga Mātāputu noho marae, e ngā Mātātahi takahi whenua, e ngä mana matahiapo tiketike, e ngā whakamiharotanga, whakapüpuri i te whakaaio anei ngā mihi maioha. Kahore te ao nei tuarua rawa mai, näku rawa i whakaehu, näku rawa i kakekake, te tapu o Irakewa i Opihi ra.

Kei konei ka mihi pohangahanga ki ngā manawhenua ō te kī, ngā putunga ō te kupu, ngāwhakarāwaitanga i te kōrero rātou e whakahiapo nei i ā Papa-tū-ā-nuku i tō ratou hïnganga. kua kore rā rātau hei whakaahuru noa mai mö te kiri, hei whakahirihiri i ngā wā ō te porotaitaka, ō te whakawhitiwhiti whakaaro, kua riro atu he terenga waka wairua, arä ngā waka kua marewa atu ki ngā hau tāhengihengi ki te aiō mōwai rokiroki. Ko roimata me hūpe te hunga whakautu.

Whai ake, ko te mihi ki ngä hapü me ngä marae whakahirahira o Ngäti Awa “Te toki whakatangatanga i te ra” e ngakau nui nei ki te whakaara ake i te hikareia mauri ki te whakarangaranga i te ähua ō te kupu me ngā whakanikonikotanga i whakareia ki te kōtihitihi ō ngā mōhukihuki.

To the esteemed guardian elders, industrious youth, exalted progeny of our Ngāti Awa heritage and perpetuators of joy and peace, I convey the greetings of your Rūnanga.

We cannot expedite the traditional cultural practices of past times to perfection; however we can but emulate and continue to sustain the spiritual and sacred concepts such as that practiced by our illustrious ancestor Irakewa at Opihi.

It is fitting that we pay homage to our dearly departed ones, the repositories of oratory eloquence, they who have embraced the bosom of their ancestor Papa-tū-ā-nuku. Their voices never to be heard, their presence never to be seen, the warmth of their embrace never to be felt as we are left bereft of their wisdom and prudence and we therefore lament at their succumbing to the wiles of Aitua.

2012 has been a year of significant challenges for the Rūnanga, including the operational restructure which caused much distress to some staff. I, as Chairperson, take full responsibility for the less than satisfactory way in which we navigated our way through those very difficult times which I believe required better cohesion and coordination, rather than being a failure to perform as has been suggested. I would like to acknowledge Murray Haines in his role as acting Chief Executive during this time and his resolute manner in meeting the challenges.

I would also like to take the opportunity to make some notable acknowledgements.

I would like to commend all those that took part in the clean up following the Rena disaster within the vicinity of Mötïtï Island which has had a detrimental effect on two of our hapū, Te Patuwai and Ngäti Maumoana. I also acknowledge Joe Harawira and those committed to the ‘SWAP’ project and their vision and dedication to the better health and wellbeing of our environment and people.

Annual Report 2011-2012

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I convey my thanks and gratitude to those who have been instrumental in maintaining the day to day operational imperatives of Te Mānuka Tūtahi Marae, especially to Pouroto Ngaropo, Hinauri Mead-Hetet, the Marae Ambassadors for their dedication and others who have also played an important role.

I convey our collective thanks to Jeremy Gardiner who has made a huge contribution in developing the Rūnanga from the time when he was an intern during the days when Ngāti Awa was in Waitangi claims negotiating mode, through to when he was appointed as the Chief Executive .

During his tenure Jeremy demonstrated many skills which influenced the development of the Rūnanga into a self-reliant corporate organisation. We wish him well in his future endeavours.

In addition I take the opportunity on our behalf to acknowledge and thank Tiaki Hunia during his tenure as Manager of Ngāti Awa Group Holdings Ltd (NAGHL). Although Tiaki’s forte is within the legal field, his skills in financial and asset management were a great asset to NAGHL. We wish Tiaki well in his new role in the public sector.

Finally we congratulate Enid Ratahi-Pryor who has been appointed as Chief Executive of Te Rūnanga o Ngāti Awa. Enid brings with her extensive experience, especially in her previous role as General Manager of Te Tohu o te Ora o Ngāti Awa. She has hit the ground running and is already demonstrating her enthusiasm and motivation.

I trust that you will join me in supporting Enid in her role.

Kei konei te tuku atu i ngā mihi mō te hākari ō te huritau ō te tama ā te Atua Me ngā mihi maioha mō te tau hou May you all have a Merry Christmas and a Happy New Year

Noho ora mai

Te Kei Merito Chairman Te Rünanga o Ngäti Awa

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Annual Report 2011-2012

TE RÜNANGA O NGÄTI AWA

BOARD OF REPRESENTATIVES 2011-2012 Board member

Hapū

Regina O’Brien Joseph Harawira Patrick Raimona-Salmon Ngahuia Brown Monte Aranga Manu Glen Meri Hepi Bruce Wereta Aranga Hone Stipich Miro Araroa Enid Ratahi-Pryor Tani Wharewera

Ngä Maihi Ngäi Taiwhakaea II Ngäi Tamaoki Ngäi Tamapare Ngäi Tamawera Ngäi Te Rangihouhiri II Ngäi Tuariki Ngäti Awa ki Pöneke Ngäti Awa ki Tamaki Makaurau Ngäti Hämua Ngäti Hikakino Ngäti Hokopü Te Hokowhitu a Tü ki Te Rähui Ngäti Hokopü ki Te Whare o Toroa Ngäti Maumoana Ngäti Pükeko Ngäti Rangataua Ngäti Wharepaia Te Kahupäke Te Pahipoto Te Patuwai Te Täwera

Charles Bluett Steffan Haua Joe Mason Te Kei Merito (Chairman) Materoa Dodd Mihipeka Sisley Charles Elliott Riritahi Williams Pouroto Ngaropö (Deputy Chairman) Aubrey Kohunui

Te Kei Merito Ngäti Rangataua

Warahoe

Enid Ratahi-Pryor Ngäti Hikakino

Annual Report 2011-2012

Joe Mason Ngäti Pükeko

Ngahuia Brown Ngäi Tamapare

6

Membership 2012 1800 1378 803 413 1101 604 324 309 309 473 568 651

Membership 2011 1776 1363 788 408 1093 604 324 309 286 461 566 644

1352 105 2533 493 530 694 2201 1244 874

1336 105 2514 457 530 688 2187 1225 873

565

561

Riritahi Williams Te Patuwai

Joeseph Harawira Ngäi Taiwhakaea II

Manu Glen Ngäi Te Rangihouhiri II

Miro Araroa Ngäti Hämua

Regina O’Brien Ngä Maihi

Bruce Wereta Aranga Ngäti Awa ki Pöneke

Hone Stipich Ngäti Awa ki Tamaki Makaurau

Meri Hepi Ngäi Tuariki

Tani Wharewera Monte Aranga Ngäti Hokopü Te Hokowhitu Ngäi Tamawera a Tü ki te Rähui

Mihipeka Sisley Te Kahupäke

Charles Bluett Ngäti Hokopü ki Te Whare o Toroa

Aubrey Kohunui Warahoe

Steffan Haua Ngäti Maumoana

Materoa Dodd Ngäti Wharepaia

Patrick Raimona-Salmon Ngäi Tamaoki

Absent Charles Elliot Te Pahipoto

Pouroto Ngaropö Te Täwera

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Annual Report 2011-2012

TE RÜNANGA O NGÄTI AWA

CHIEF EXECUTIVE ELECT PROFILE Enid Aniko Pearl Ratahi-Pryor QSO Born in Whakatane in 1964 to Rangihoea Joy Ratahi (nee Hohapata), (Ngäti Hikakino, Ngäti Hokopu, Ngä Maihi and Te Whänau a Apanui), and Patuwhitiki (Pat) Ratahi (Taiwhakaea, Te Kahupaake, Te Pahipoto, Te Täwera). Patu was a Bay of Plenty representative rugby player and stalwart of Te Paroa Rugby Club.

He married the beautiful Rangihoea well known throughout the district for her singing, dancing and love for life. They had Reginald, Stanley, Maude and Katrina who were raised in Whakatane by their kuia Moerangi. David and Enid were brought up in Tamaki Makaurau. Their home was a regular resting place for many Ngäti Awa when visiting or making the shift to Tamaki Makaurau from Whakatane where Patu and Rangihoea ran the Old Mill Dairy on Karangahape Rd. Patu continued his rugby in Auckland by coaching Te Atatu Rugby and was a selector for the Auckland Mäori Team for many years. They both moved back to Te Paroa in their retirement years where Patu was the chairman at Taiwhakaea Marae, Te Paroa Lands Trust and many whänau Trusts before passing at aged 69 on 24 July 1993. Rangihoea shifted home and took up a representative role on Te Rünanga o Ngäti Awa for Ngäti Hikakino, and was one of the early trustees of Tümeke FM. She lived with Enid and her family in Awakeri for 15 years before passing away at the age of 86 on 23 November 2010.

Enid’s backbone are her husband Joseph Pryor, son of Bully Pryor of Ngä Maihi and her two daughters, Aroha aged fourteen, and Ngahuia aged twenty one. Aroha attends Whakatane High School along with Matty fifteen who lives with her koro and Enid. Ngahuia is in her final year at Victoria University completing a Bachelor in Commerce.

She brings with her the knowledge and experience as the past Chief Executive of Ngäti Awa Social and Health Services, the former General Manager of the Disabilities Resource Centre EBOP and has 20 years of General Management experience. She has an extensive background in the health and social service sectors.

At a national level the past ten years have seen Enid as a member of the Welfare Working Group established by Minister Bennett in 2010 to review the Welfare system, involved with the Ministers Community NGO Advisory Group, a former member of the Lottery Grants National Facilities Committee as well as the Lottery Grants Special Significance National Committee.

Enid has been a former Board Member of the Bay of Plenty District Health Board, the former Chairperson of the Boards statutory Disability Advisory Committee and a former Trustee of the Bay of Plenty Community Trust. Also a Director of the Eastern Bay of Plenty Primary Health Organisation, a former member of the Community and Voluntary Sector Working Party and Steering Group, and then re-appointed to Stage 3 as Chairperson of Te Wero to further develop the Maori components of the Community and Voluntary sector work programme. In 2007 she was one of the five community representatives for the Governments work stream Funding and Accountability through MSD focused upon strengthening the Governments relationship with the NGO sector.

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As head negotiator and leader of the claimant group for WAI 79 – Awakeri Hot Springs since 1994, Enid was responsible for each stage of the claim journey including research, management of the hearing, Deed of Settlement and ratification processes. The claim was successful with the transfer of ownership from the Crown to the Whanau occurring in 2004.

Enid has a very long history (21 years) with Ngäti Awa as a member of the Ngäti Awa Raupatu Committee, Secretary of Te Kömiti Taiao, Trustee of Ngäti Awa Social and Health Services and Director of Ngäti Awa Group Holdings Limited. She is also the Chairperson of Rotoehu Forestry Trust and a trustee on Kiwinui Trust.

Enid graduated from Waikato University with a Master’s in Business Administration and a Diploma in Economic Development through AUT in 2006. She is currently an active member of the Wairaka Maori Women’s Welfare League Branch for the past year and in 2003 was appointed a Companion of the Queens Service Order (Q.S.O) for Public Services.

Enid was appointed at the end of August 2012 as the new Chief Executive for Te Rünanga o Ngäti Awa. Well known for her success establishing a sound health and social service delivery platform for Ngäti Awa, Enid now relishes the opportunity to focus her attentions on continuing the growth and development of Te Rünanga o Ngäti Awa. With a specific focus upon accountability and transparency, Enid is keen to ensure that Te Rünanga o Ngäti Awa has a sustainable financial base that does not encroach into the 110 million dollar settlement that is being grown for future Ngäti Awa generations. Responsible for both the NAGHL and Rünanga arms, Enid’s vision is to grow the Iwi capital base to give a true effect to Ngäti Awa Te Toki, whakatangatanga i te ra. She has outlined her vision of the Ngäti Awa Cultural precinct focused upon Mataatua Wharenui being the centre of the precinct with a future move of the Te Rünanga o Ngäti Awa offices being moved to the precinct to provide warmth and support for the wharenui.

A whare taonga is to be established with the re-establishment of a fully operational Research and Archives office.

Aligned with these movements is the idea of bringing to life the historical places of Mataatua through increased wananga and activity some of which are focused at increasing Ngäti Awatanga and language along with increasing resources available to tourists and the wider community outside of Ngäti Awa. Enid is the first Ngäti Awa woman to hold the position of Chief Executive at Te Rünanga o Ngäti Awa. As the Chairperson of Puawairua Marae and a descendant of Wairaka, Enid said “At the end of the day it’s about being the best person for the job. The fact that I am a woman, hadn’t actually registered with me until it was brought to my attention by a man!”

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Annual Report 2011-2012

TE RÜNANGA O NGÄTI AWA

INTERIM CHIEF EXECUTIVE REPORT Introduction This has been a difficult year for Te Rünanga o Ngäti Awa as we grappled with the continuing downturn of the global economy and greatly reduced income to fund the operations of Te Runanga o Ngäti Awa. The resignations towards the end of the year of both the Chief Executive of Te Rünanga o Ngäti Awa Jeremy Gardiner and the General Manager of Ngäti Awa Group Holdings Limited Tiaki Hunia contributed to a loss in both the capacity and capability of the organisation. Staff restructuring and loss of positions within the Rünanga has resulted in a very lean however passionate team that are now responsible for making the new structure work for the 22 hapü of Ngäti Awa. Against a backdrop of fiscal constraint, the office of Te Rünanga o Ngäti Awa has experienced a number of challenges including: Mataatua Wharenui 1. The need to embed the Visitor Experience Frame-work at Mataatua Wharenui into a viable business opportunity.

2. The establishment of the infrastructural capacity and capability to deliver the Visitor Experience.

3. The generation of revenue from the investment without compromising the cultural sanctity of both Mataatua and Te Mänuka Tütahi Marae.

Given the Mataatua Wharenui had been successfully re-established the previous year, the focus of the Rünanga was about the need to implement the above 3 goals during this financial year. Unfortunately, the predictions for visitor numbers were too high and resulting budgets therefore flawed. Again due to the backdrop of fiscal constraint operations were scaled down to reflect visitor numbers and seasonal fluctuations with minimal staffing. Conversely, conference, marae hire and school visits gradually increased over the year improving the wharenui income stream. Interestingly, whilst the emphasis had been upon targeting the tourism market it has been the local community, schools, and conference hireage that has kept the marae busy. The approach for the future is to balance both the commercial and cultural imperatives without compromising the cultural essence of both the Mataatua wharenui, Te Mänuka Tütahi Marae and Ngäti Awa. Staffing In addition to the restructuring program of the Rünanga office, the integration of the Chief Executive Officer role and General Manager role of Ngäti Awa Group Holdings Limited resulted in Tiaki Hunia previously the Ngäti Awa Group Holdings Limited General Manager filling the role of overall Chief Executive when Jeremy Gardiner left in March 2012. Tiaki continued in this role until his departure in June 2012. As the Chief Financial Officer for the organisation I was appointed Interim Chief Executive in June 2012. A process for seeking a new Chief Executive was instigated by the Board which resulted in the employment of Enid Ratahi-Pryor QSO in September 2012.

During the year, in addition to Jeremy and Tiaki, Lindsey Mariu and Robyn Noema left the organisation. Shortly after year end Michelle Merito, Sharon Tutua, Beverly Hughes, Lawrence Hohua and Danny Mc Roberts also left the organisation while we were joined by, Donna Tutua taking up a position in the finance department.

Although the restructuring had not been completed during this financial year, it was clear that the need for change in both structure and culture of the Te Rünanga o Ngäti Awa Office was becoming more and more inevitable.

Financial Results Summary The table below analyses the difference between trading profit and the profit reported in the consolidated audited financial statements.

Trading Activities Net Profit/(Loss) After Tax Wireless Businesses Impairment and trading losses Non-Cash Impacts from Revaluations and Movements in Assets Net Surplus/(Deficit) After Tax

Annual Report 2011-2012

10

2012 $million $0.14 ($0.4) ($0.08) ($0.34)

2011 $million $1.3 ($1.9) $1.3 $0.69

Whilst the global economic situation remains depressed and volatile we have been protected from this to some degree by the performance or our cash generating assets ie Farms, Properties, Fisheries, Forestry and Fixed interest.

Our Financial result has been marred by the massive drop in the carbon credit market which has necessitated a $2.3M write down of this asset.

There has been some unbudgeted project and other expenditure during the year and in particular the costs for the Mataatua Wharenui opening celebrations were well in excess of our budget. Also the Rünanga incurred one-off restructuring costs as the organisation was rationalised and refocused into a more efficient model. Part of this refocusing will be ensuring that unbudgeted projects are only undertaken if absolutely necessary or if commercially beneficial.

Moving ahead the Runanga needs to aim to be “cash neutral” (spend only the annual funding provided) to ensure that we maintain and grow the putea for future generations.

The Rünanga has continued to make tertiary grants to the tune of $100K and Hapu grants of $110K during the year.

The Rünanga received another clean audit report. The auditors also noted an improvement in the efficiency of the financial processes. I would like to thank Yvonne Coates and Donna Tutua for their hard work over what was a very busy financial year end period.

Asset Growth Total assets of $110 million have reduced $1 million from the previous year. However $1.5M in cash held on trust for Ngäti Hikakino and Ngäi Te Rangihouhiri II Hapü was transferred to their new entity during the year which more than accounts for this reduction. The graph below depicts asset growth since settlement in 2005.

$millions

Total Assets

Conclusion The challenges will no doubt continue into the future as the organisation looks for ways to reduce costs and increase income.

Reviewing the priorities of Te Ara Poutama and being realistic about what Te Rünanga o Ngäti Awa is capable of achieving with its reduced income and staffing levels is at the forefront of future changes. Being clear about our core business and what it is the Rünanga can deliver effectively and efficiently will no doubt lead to further structural change both at an office and Board level. I thank the Board for their continued support and staff both past and present for their perseverance and commitment to ngä uri o ngä hapü o Ngäti Awa.

Murray Haines Interim Chief Executive Te Rünanga o Ngäti Awa

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Annual Report 2011-2012

TE RÜNANGA O NGÄTI AWA BOARD OF REPRESENTATIVES’ FEES AND OTHER PAYMENTS For the year ended 30 June 2012 in New Zealand Dollars Payments to Board Members under the Rünanga Charter Under the Rūnanga Charter clause 18.1(c), there is a provision for professional fees that can be paid to Board Members. During the year ended 30 June 2012 the following board attendance meeting fees, other meeting fees and professional fees were paid to Board Members: Board Member

Meetings Attended

Rünanga Meeting Fees

Other Trustee/ Director/Committee Meeting Fees

Other Payments (Whilst Board Member)

Total

$

$

(Whilst Board Member)

$ Mr B Aranga Mr M Aranga Mr M Aroroa Mr C Bluett Ms N Brown Ms M Dodd Mr C Elliott Miss M Glen Mr J Harawira Mr S Haua Ms M Hepi Mr A Kohunui Mr J Mason Mr TK Merito Mr P Ngaropo Ms R O’Brien Mr P Raimona-Salmon Mrs E Ratahi-Pryor Ms M Sisley Mr H Stipich Mr R Williams Mr T Wharewera

8 10 13 12 11 10 12 12 7 10 13 10 13 10 12 13 10 11 11 12 11 11

$

2,520 3,150 4,095 3,780 3,465 3,150 3,780 3,780 2,205 3,150 4,095 3,150 4,095 45,000 13,500 4,095 3,150 3,465 3,465 3,780 3,465 3,465

36,880 5,375 4,225

24,300

35,000

600 3,950

19,200

23,025

127,800

61,475

91,080

2,520 3,150 4,095 40,660 3,465 8,525 8,005 3,780 2,205 3,150 4,095 3,150 63,395 45,000 33,300 8,045 3,150 26,490 3,465 3,780 3,465 3,465 280,355

Employee Remuneration Payments to Employees to be Disclosed under the Rünanga Charter Under the Rūnanga Charter clause 11.3, there is a requirement for the Annual Report to comply with section 211 of the Companies Act 1993 but excluding information required by section 211(1)(g) where the Rūnanga so decides pursuant to clause 11.6 (Protection of Sensitive Information).

During the year ended 30 June 2012 the number of employees or former employees, not being governors that received remuneration and any other benefits in their capacity as employees where the value exceeded $100,000 per annum were:

Number of Employees $100,000 - $110,000

1

$140,000 - $150,000

1

$180,000 - $190,000

1

Annual Report 2011-2012

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NGÄTI AWA GROUP HOLDINGS LIMITED AND NGÄTI AWA ASSET HOLDINGS LIMITED Financial Results Key Positive Point The businesses and investments that we manage or control; Farms, Forestry, Fisheries, Properties and Fixed Interest have all performed well

Key Negative Point We have no control over investment markets. The reduction in the carbon credit value and flat equity market performance have been disappointing

The combined Ngäti Awa Group Holdings Limited and Ngäti Awa Asset Holdings Limited’s financial results for the year ended 30 June 2012 was a net surplus after tax (including noncontrolling interests) of $1.3 million. This compares to the prior year’s net surplus after tax of $1.9 million. Movements in valuations required under the accounting standards have been positive but have been completely offset by a $2.3M write down in the value of carbon credits. The asset write ups / (downs) that are included in the Income Statement as non-cash adjustments are set out in the table below: Asset Investments in Shares Forestry Land Investment Properties Livestock Manu Hou investments (Direct Capital IV Fund) Carbon Credits Total

Revaluation Amount 155,000 1,228,000 180,000 356,000 118,000 (2,298,000) ($261,000)

Equity Investment markets have remained volatile over the year. The $8M Cleary Wealth Management International portfolio earned a modest unrealised gain of $97,000 or 1%. In November 2011 $9M was transferred from term deposits into a JB Were managed Australasian equities portfolio which targets a dividend yield of 4.5% to replace the cashflow from the term deposit interest and which will also provide capital growth upside. The portfolio has the objectives of being low risk and low volatility and also maximises our tax structure. At 30 June 2012 there had been a modest $58,000 or 1% return on this portfolio for the seven months it was in operation. It should be noted that capital growth since 30 June 2012 has been strong due to the performance of New Zealand blue-chip companies.

The investment in GOnet and the wireless network had already been written down to a nil value at 30 June 2011. The network and business were sold during the year ending 30 June 2012. Trading losses for the year up to the date of sale of $400,000 were incurred.

The $1,228,000 increase in Forestry Land Valuation is due to the strong rental income from this land and is in line with management expectations.

The valuations of other major assets, Ngakauroa Dairy Farm joint venture, ACE Fish quota, Aotearoa Fisheries Limited Shares and Birnie Capital Property Partnership have not changed from 2011.

The “face value” of the Bond Portfolio has reduced from $10M to $8.7M due to the maturity of $1.3M of bonds over the year.

This cash has been deployed elsewhere. The market valuation of the Bond Portfolio was $575,000 above the $8.7M face value at 30 June 2012 due to the high quality of the bonds held. The movement in this asset is recorded in asset revaluation reserves (ie. direct in equity) rather than the income. Management continue to be aware of any high quality new bond issues coming to the market with a view to maintaining the level of investment in this portfolio as individual bonds mature.

Fixed Interest revenue earned of $0.91M. This is mainly driven by the performance of the bonds portfolio which returned 7% net. This portfolio has and will continue to provide some protection against the current low interest rates. Fixed interest earned in the prior year was $1.35M. The reduction is due to the redeployment of $9M of cash previously invested in term deposits to the JB Were managed Australasian equities portfolio in November 2011 as mentioned above.

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Annual Report 2011-2012

The investment in the Direct Capital IV Private Equity Fund via Manu Hou Limited Partnership is now 3 years into it’s 10 year lifecycle. The fund is meeting it’s KPI’s in terms of identifying and making investments. At 30 June 2012 six investments had been made. There were revaluation gains of $118,000 on these investments for the year. Manu Hou also made an additional “side investment” of $1M into one of the investee companies within the Direct Capital IV Private Equity Fund. Given the rigor of the Direct Capital due diligence processes this was an efficient and safe way to gain further private equity exposure.

Production was above budget for the Ngakauroa Dairy Farm Joint Venture. However the Fonterra payout was below budget which meant that dairy proceeds overall were slightly below budget. There were significant stock revaluation gains and the return on investment for the farm was 6.6%. The cash return and year- end cash positions were also strong.

Investment Property revaluations were positive $180,000. Overall the portfolio returned 6.1% and there has been a cash return of 4.7% over the portfolio which is the same as for the previous year.

The investment in the Birnie Capital Property Partnership has previously been impairment tested and written down from the $3.3 million holding value to nil. During the previous year Ngāti Awa Asset Holdings Limited reached an agreement to sell its shares in the Partnership to Mr Birnie and Mr Birnie continues to be pursued for payment under this agreement.

Net operating cash flows have been strong for the year due to good cash performances from the Farming, Forestry, Property, Fisheries and Fixed Interest assets.

The total Combined Assets of the commercial operations (including non-controlling interests) are $83 million, 2011 was also $83 million.

Return on Total Assets for 2012 is 2% (2011: 2%). The 2012 return would have been 4% without the Carbon Credit write down.

The graphs below quantify by asset the net surplus/deficit and return on investment. The direct costs for revenue generating activities have remained consistent with last year.

Sir Harawira Gardiner Executive Chairman Ngäti Awa Group Holdings Limited

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$millions

Net Surplus by Asset

Drystock Farm

Forestry Land

Carbon Credits

Property

Fisheries

Dairy Farm

Fixed Interest

Shares

Wireless

Manu Hou

Shares

Manu Hou

% Return

Return on Investment by Asset

Drystock Farm

Forestry Land

Carbon Credits

Property

Fisheries

14 15

Dairy Farm

Fixed Interest

Annual Report 2011-2012

TE RÜNANGA O NGÄTI AWA POLICY, STRATEGY AND RESEARCH Ngā Pae o Te Maramatanga Research project - Māori Economic Development Research Project.

In 2010, Te Rūnanga o Ngāti Awa and Te Whare Wānanga o Awanuiārangi agreed to undertake a joint research programme into Māori economic development funded by Ngä Pae o Te Märamatanga. In addition to being a research partner, the Rūnanga also provided one of four iwi researchers to contribute to the programme.

There are three components to the research: • Project One: Visioning - The establishment of an aspirational framework for Ngāti Awa economic development (Underway 2012) • Project Two: Designing - The design of innovative models and scenarios for Ngāti Awa economic development (Underway 2012) • Project Three: Transforming - The creation of a futures framework to transform Ngāti Awa economic development (to commence 2013) In 2011/2012, Projects One and Three were initiated and are still in progress. Progress in 2011/2012 includes: • 13 participant interviews completed 2011/2012 - Ngāti Awa land based trustees - Ngāti Awa business owners - Māori economic development experts - Ngāti Awa company directors • Scenario development underway 2011/2012 - 15 uri o Ngāti Awa from a commercial, social, cultural and academic backgrounds • Draft research report The key research findings to date are: • Leadership is central to Ngāti Awa economic development • Ngāti Awa economic development needs to strike a balance between cultural needs and development priorities • Collaboration amongst Ngāti Awa and with other partners is essential.

Te Mahere Rautaki Mātauranga o Ngāti Awa – Ngāti Awa Education Strategy In 2011/2012, Te Mahere Rautaki Mātauranga o Ngāti Awa (Mahere Rautaki) hui were held with Ngāti Awa uri, whānau, marae and hapū through a series of hui, an online survey and the use of social media. Focus groups were also held with Ngāti Awa rangatahi, pākeke, hapū and affiliate organisations. Non-Ngāti Awa and Ngāti Awa education professionals were also consulted for feedback.

The key focus question posed at each hui was “What are your education aspirations for Ngāti Awa?” Feedback from the participants was analysed to identify common themes, principles and aspirations. A review of previous consultation and research undertaken by Te Rūnanga o Ngāti Awa was also conducted. Written submissions from iwi members were also considered.

The aim of the Mahere Rautaki is to build upon the education aspirations of Ngāti Awa uri, whānau, marae and hapū.

This in turn sets the foundation and accessibility of education pathways to determine successful outcomes for Ngāti Awa whānau.

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The Mahere Rautaki underpins the philosophical beliefs of the iwi vision, Ko Ngāti Awa te Toki and strengthens our approach to Te Ara Poutama o Ngāti Awa - the strategic direction of the Rūnanga and iwi. All Ngāti Awa whānau and organisations play a pivotal role in the sustainability and wellbeing of Ngāti Awa and jointly are responsible for realising the educational aspirations and potential of Ngäti Awa whānau and hapū.

The final Mahere Rautaki Mātauranga o Ngāti Awa is planned for release in November 2012.

Detailed activities and initiatives that support the Mahere Rautaki will be outlined in the Te Rūnanga o Ngāti Awa Annual Plans. Activities developed in the Annual Plan will be evaluated to ensure we are measuring our success and to determine future investments and priorities.

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DEVELOPMENT NGÄTI AWA Ngäti Awa Tertiary Student Internship 2011/2012 For the past four years Te Rūnanga o Ngāti Awa has hosted two Tertiary Interns over the summer break. The Internship programme is designed to give tertiary students some experience and insight into the operations of an iwi organisation, with a particular focus on iwi development. The student may be studying at any level from undergraduate through to PhD level.

This year the Ngāti Awa Internship programme was awarded to Jayde August, of Te Pahipoto. Jayde is currently an undergraduate at the University of Waikato, studying towards a Bachelor of Science, majoring in Earth Science or Environmental Science.

Jayde has a keen interest in working in Ngāti Awa to help sustain natural iwi resources and also monitor landmarks such as Whakaari. Being raised in Te Teko, Jayde has a special interest in the Rangitaiki river. Jayde sees her qualification as a way to gain knowledge and understand environmental changes better and thereby support the Te Teko community, and wider iwi to be able to sustain our natural resources.

During the internship Jayde undertook a variety of duties including working with the Rūnanga Secretary, Ngāti Awa Registrations and Kaitiakitanga with Beverley Hughes.

“I found the people of the Runanga welcoming and supportive. It’s pretty mint to have adults encouraging you and wanting you to succeed at school. Heaps of filing but filing doesn’t hurt. Had funny days, didn’t have any bad days. Good working environment, nice people. Ka pai” – Jayde August.

The Ngäti Awa Internship is an annual programme that runs between January and February. Intern applications for 2012/13 open in October and are available online at www.ngatiawa.iwi.nz.

Ngäti Awa Hakinakina Grants 2011/2012 Te Runanga o Ngäti Awa recognises that sporting achievements at a national or international level enhances an individual’s ability to participate in education, the work force and the community. Hakinakina Grants are awarded to registered Ngäti Awa members who are a national or international representative of a Sport and Recreation Council (SPARC) recognised sport. The grants are valued at up to $500.00 per annum per applicant. Grants may be awarded for travel costs, entry fees or equipment.

2011/2012, Ngāti Awa Hakinakina Grant recipients: Kennedy Merito Ngāti Rangataua NZ Touch U15 Boys Karen Hanlen Ngāti Pūkeko Bike NZ Cross Country Mountain Biking Elizah Ward Ngai Tamaoki NZ Touch U21 Women’s Squad Mererangi Paul Ngai Tamapare NZ Touch U15 Mixed Squad Carlos Savage Te Pahipoto NZ Touch Open Men’s Squad Moerangi Vercoe Te Kahupāke NZ Basketball U16 Girls Squad Awhina Savage Te Pahipoto NZ Touch Blacks Women’s Squad – World Cup in Edinburgh Shaquile Stone Ngāti Pūkeko NZ Touch Open Men’s Squad – World Cup in Edinburgh Maurice Stone Ngāti Pūkeko NZ Touch Open Men’s Squad – World Cup in Edinburgh Kiritapu Demant Ngāti Pūkeko NZ Touch U17 Ruahei Demant Ngāti Pūkeko NZ Touch U15 Rachel Wikeepa Ngāti Hāmua Aotearoa Māori Women’s Sevens Lee Paul Ngāti Pūkeko IBSF World U21 Snooker Championship Ngäti Awa Tertiary Education Grants and Scholarships 2012 Te Rünanga o Ngäti Awa is committed to supporting lifelong learning and excellence in education. This year we were proud to support 255 tertiary education grants and 6 tertiary scholarships recipients in 2012.

The Ngāti Awa Tertiary Grants and Scholarships presentation day was held at Pukeko Marae on Saturday, 14 April. It was a very successful day which was attended by 92 applicants and whänau, and ended with a scrumptious meal.

Tertiary grants and scholarships open annually in January and close in March. All applications are completed online through our website www.ngatiawa.iwi.nz.

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Tertiary students are also invited to join our Ngäti Awa Tertiary Student Facebook.

2012 Ngāti Awa Tertiary Education Scholarship Recipients Category Recipient Arts/Philosophy/Education Gloria Hunia, Ngāi Tamaoki Medicine/Science Jennifer Boudreau, Ngāti Pūkeko Medicine/Science Nohoana Findlay Ngāti Pūkeko Matauranga Māori Brian Tunui, Ngāti Pūkeko Law/Commerce Eruera West, Te Kahupake IT Technology/Engineering Naeri Nicholls, Ngāti Hokopu ki Te Whare o Toroa Applied Studies Maatatetaiawatea Bosma, Te Pahipoto 2012 Ngāti Awa Tertiary Education Grant Recipients Nga Maihi Vivienne de Bortali Tregerthan Dara Dimitrov KellyAnn Edwards Rawiri Geddes Wini Geddes Ashlea Gillon Rhylee Hahipene Mere Heeney Paora Tutaki Hona Te Hau Paeroa Hona Nolene Hunia Adrienne Karekare Kiri Karekare Tracey Lee Airini Mason Jordan Masters Teresa McCauley Sophie Minarapa Titihuia Paea Cynthia Pryor Minta Maria Pryor Kimiora Raerino Darlene Smith Grace Stone Hana Tapiata Rioden Tierney Antonia Yarnton Charlotte Yarnton Ngāi Te Rangihouhiri Stacey Morrison June Schuster - Barton Josephine Tauroa Ngāi Taiwhakaea Moerangi Black Christina Casey Levi Connelly Jade Connelly

Maia Connor Janine Copeland Michelle Gabriel Paige Heurea Shonelle Iopata Chrissie Keepa Emma Kingi-Maki Eden Lloyd Francessca Maslin Lena Mate Lynette Milosevic Desmond Mita Dana Ngatai Elisha Rolleston Kendall Stevenson Nathan Stewart Manukorihi Tarau Sharyn Te Aute Karamea Tukukino Sheridan Tina Tuiavii Pera Tutua-Nathan Jenny Wahapango Talia Wahapango Courtney Wana Jesse Wana Trixie Webb Ripeka Williams Ngāi Tamaoki Betty Hunia Billy Jo Hunia Brooke Kingi Renee Matenga Rahera Paul Patrick Salmon Barry Savage Mark Sisley Elizah Ward Michelle Ward

Area of study Bachelor of Arts (Political Science) Master of Health Science Bachelor of Medicine, Bachelor of Surgery Bachelor of Arts Bachelor of Management Studies Master of Architecture (Professional) Diploma In Culinary Arts June-Anne Lewis Veronica Maru Baiden Te Purei Ngāi Tamawera Kuini Monika Hilton Gibbons Melevea Huihui Guy Monika Cilla Onehi Hingangaroa Smith Bella Tipene L’Angelle Tutapakore Ngāti Awa ki Poneke Charlotte Marr Hinetaapora Moko-Mead Te Taiawatea Moko-Mead Kale Noanoa Kererua Savage Ngāti Awa ki Tamaki Makaurau Ringo Rissetto Deleraine Puhara Billiejo Ward Ngāti Hāmua Maraea Gage Kereopa Hakopa Ngatai Martin Tahlia Martinac-Rua Taipu Nepata Kevina Tarei Hinerangi Wiri Ngāti Hikakino George Barsdell Ani Hohapata Ngahuia Leighton Tina Murray Maria Tamepo

Ngāi Tamapare Maria Elder Vicki Murray

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Ngāti Hokopu ki Te Hokowhitu Leesa Biddle Skella Keepa Pearly Keepa-Mark Talei Swanson Shaani Tauroa Kiely Evelyn Waiomio Lisa Wilkins Ngāti Hokopu ki Te Whare o Toroa Kate Abel Ormsby Barrett Dallas Cole Kerri Hemopo Moana Hudson Patrick Hudson Paula Hudson Peti Hudson William Hudson Annexe Kahika Denise Kamizona Mac Kingi Pauline Kora Sandra Laing Kathleen Moeke Marama Perkinson Malae Phillips-Samu Jordan Rakuraku Erin Skidmore Christopher Stewart Matthew Stewart Edward Sykes Morgan Webb Te Täwera Alexandra Hata Pirihita Sheila Patrick Beau Stowers Warahoe Danielle Crawford Jackie-Jade Ruri Jeanette Tioke Ngāti Pukeko Leana Awhimate Tracey Basham Takuira Angela Bidois Ngahiraka Collier Jacob Edwards Elaine Gulde Zalman Horsburgh Angela Hindmarsh Antony Jaram Te Puritanga Jefferies Louise Keepa Susan Kingi

Therese Kingi Hayley Kopae Jacqueline Kumeroa Venamaria Leach Trina Leaf Stacey Mareroa Magdalen Mason Tayla McCauley-Walker Eru Merito Maria Ngoungou - Martin Shikyra Lee Ohlson Ellen Pene Jennyle Peretini-Teepa Polly Rapana Elvina Rogers Mohi Rua Robert Jim Smith Turaki Smith Destiny Taare Nassah Te Kani-Green Violet Temo Debbie Tunui Ikey Tunui Roimata Tunui Meihana Umuhuri Jason Wikeepa Mihi Williams Ngāti Rangataua Kimi Heathcote Mate Heitia Nikora Heitia Matetu Herewini Nan Kawau Horowai Moeke Jennifer Rapana Leslie Umuhuri Mei Winitana Te Kahupäke Alice McLeod Hemi McLeod Rawinia Phillips-Smith Erana Rissetto Te Pahipoto Merenia Anderson Waimatao Anderson Jayde August Shakiel Awa Te Ari Awa Pania Biddle Freddy Carr Erin Carr Phoebe Carr Shane Clarke Julia Coates

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Paula Fahey Chanelle Folwell Reina Hale Elaine Hohepa Paul Hudson Trayarna Kaipara Cynthia Kingi Tama Te Rerewa Koopu Alisha Mansell Hannah McComb Grace Ngapo Corrina Niao Melissa Niao Stacey Niao Te Aokahari Niao Thomas O’Brien Adrienne Paul Rangitiaria Pihama Rochelle Pihama Unique Erena Powell Chloe Ririnui Waimanuka Selway Tanisha Tapsell Sheree Tuhoro Katerina Waiari Fiona Waititi Bernadine Warren Hinerau Wetini Te Taiawatea Wihapi Cheryl Wilson Te Patuwai Kevin Hiha Tamihana Coxhead Fonteyn Gear John Hanley Claire Herbert Te Whauhuia Koopu Tamahore Rangi Eva Ruha-Kelly Te Atarangi Sayers Irene Maria Tutaki Te Anini Young Wharepaia Grace Abbott Olivia Eastwood Ashley Ellis Ann-Marie Higgins Francesca Higgins Angus Hodgson Davina Mossman Maree Park Jamie Taylor Paul Warbrick

Ngäti Awa Commemoration Day 16 June 2012 Ngāti Awa celebrations coincided with Matariki marking a new beginning. A great number of people attended the Ngāti Awa celebrations held at Te Mānuka Tūtahi Marae, Mātaatua Wharenui on 16 June. The event looked at all aspects of what it means to be a 21st century Ngāti Awa uri.

The event is based on the signing of the Treaty of Waitangi here in Whakatāne on the 16th of June 1840. Key speakers at the celebrations included Joe Mason and Waaka Vercoe who shared their views on ‘Te Reo kōrero o Ngāti Awa’ and the Treaty settlement process.

Ngāti Awa Youth Ambassadors Enabling Ngäti Awa Rangatahi leadership potential is a key priority identified by the iwi in Ko Ngäti Awa te Toki and is further acknowledged in Te Ara Poutama o Ngäti Awa. The Youth Ambassadors programme is about creating pathways for Rangatahi to contribute to their iwi and participate in iwi events. It is also an opportunity for Rangatahi to learn about Ngāti Awa while being mentored by other likeminded Ngāti Awa rangatahi. This initiative has been a success for Ngāti Awa and rangatahi.

The Ngāti Awa Youth Ambassadors were outstanding in their preparation, contribution and service to the opening of the Mataatua wharenui and the Ngäti Awa festival. The Youth Ambassador programme will become part of a wider Rangatahi Leadership programme, once the planning has been completed. We wish all our Ambassadors well for the future and look forward to hearing about their progress.

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ENVIRONMENT NGÄTI AWA Kaitiakitanga Ngäti Awa Introduction Following a tumultuous period of restructuring and uncertainty it is with great sadness we have bid farewell to Beverley Hughes. The huge contribution that Beverley made to Ngäti Awa over the years of her tenure cannot be overstated. Whether it was her constant drive to ensure involvement of nga uri o Ngäti Awa in process or her tenacious efforts to instil a Ngäti Awa perspective in local government policy and decision making, Beverley leaves a legacy that will be enduring and long missed.

Kopeopeo Bioremediation Project The investigative stages of the Köpeopeo Bioremediation Project have been completed and the Bay of Plenty Regional Council is now progressing consent applications to undertake the project in 2013. Hui-a-Hapü were held at Hokowhitu Marae in April and June 2012 to inform Ngä uri o ngä hapü o Ngäti Awa of the project and a presentation was made to the August 2012 Board Meeting. Te Rünanga o Ngäti Awa completed a cultural impact assessment for the Köpeopeo Canal Remediation Project supporting the project given its overall aim is to reinstate the health of the Köpeopeo and allow for use of the canal and the harvest of tuna once more.

The realisation of the Köpeopeo Bioremediation Project will be due in no small part to the tireless efforts of Joe Harawira QSM (Saw Mill Workers Against Poisons), Riritahi Williams (Pupuaruhe – Toroa Board Representative) and Beverley Hughes (Te Rünanga o Ngäti Awa).

The work of Jean McCauley and Eula Toko (Bioremediation Technicians) for the Te Ohu Mö Papatüänuku Bioremediation Trials must also be acknowledged. Congratulations also to Tracey Godfrey and Liliana Clarke for completing their Mätauranga Mäori thesis.

Response to Flood Damage at Ngäti Awa Farm Following significant flood damage from storm events in 2010 and early 2011, Te Rünanga o Ngäti Awa has worked closely with Regional Council staff to develop a long term response to continuing erosion occurring in the Maraetotara Stream. The Maraetotara Project will involve the installation of 18 to 20 low planted weir structures in the bed of the Maraetotara Stream to stabilise the bed level and reduce current rates of erosion. The project is a three way partnership funded equally between the Regional Council, Whakatäne District Council and Ngäti Awa and will commence in November 2012.

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Fonterra Edgecumbe Discharges to the Rangitaiki River In early 2012 Kaitiakitanga Ngäti Awa met with staff of Fonterra’s Edgecumbe facility to discuss the renewal of their consents to discharge process wastewater and stormwater to the Rangitaiki River and East Bank Road Drain. In April 2012 a hui-a-hapü was held at Uiraroa Marae with representatives of Rangitaiki hapü and neighbouring Iwi Tuwharetoa ki Kawerau invited to receive a presentation from Fonterra and discuss their discharges to the Rangitaiki River. Ngäi Taiwhakaea descendant and Fonterra electrical technician Douglas Tutua provided cultural representation for the Fonterra delegation.

While the poor state of health of the Rangitaiki River is a major concern to Rangitaiki hapü, there is general support for Fonterra’s ongoing operations due to their commitment to reducing discharges to the river and the significant contribution Fonterra has made to local employment for many generations. Fonterra has offered to employ a summer cadet on an annual basis for a Ngäti Awa descendant interested in the environmental field or technical trades. Fonterra’s commitment to the ‘Clean Streams Accord’ involving fencing of waterways from stock is also encouraging to Ngäti Awa. Fonterra has also committed to further management improvements at the Edgecumbe site and reductions in discharges to the river through a move to spray irrigation to land. Rangitaiki hapü have commended Fonterra for their genuine efforts to consult and their commitment to a meaningful and ongoing relationship.

Bay of Plenty Regional Council Mataatua Reserve Floodwall In June and July 2011 Kaitiakitanga Ngäti Awa facilitated consultation by the District and Regional Council’s with representatives of Wairaka marae for the completion of flood wall upgrades at Mataatua Reserve. The consultation identified that any works must be considerate of cultural view shafts to and from Wairaka marae and should not result in increased flooding of the marae ätea that had increased noticeably in recent years. Wairaka representatives also cautioned the Council’s over the disturbance of contaminated material known to be within the site. A site meeting was held where Wairaka representatives were able to view the height and scale of the proposed floodwall from Te Whare o Toroa Marae. There was also agreement that replacement landscape plantings would use low growing shrubs and plants to maintain view shafts. In response to increased flooding, the District Council committed to upgrade an existing stormwater line and provide for a dedicated pump system to reduce flooding of Wairaka Marae.

Pupuaruhe Urupa In April 2012 Te Rünanga o Ngäti Awa received details of a proposal by Horizon Energy Distribution to subdivide a portion of the Whakatane Mill carpark to construct a power substation located next to the Pupuaruhe Urupa. A meeting was held onsite with Riritahi Williams (Hapü and Urupa Committee) where surveying of the property had shown several of the graves on or over the northern boundary. There was also discussion of the visual intrusion of the proposed power substation and existing carpark area. As a result of the site meeting and cultural impact assessment prepared, Horizon Energy Distribution have agreed to have the northern boundary of the Urupa adjusted by 2 metres.

They will also plant that boundary with low and medium growing native plants to be approved by Ngäti Awa. In addition, Ngäti Awa is in discussions with the Whakatäne Mill about similar planting of the eastern boundary to screen the Mill operation and cafeteria.

MV Rena Grounding In the early hours of the 5th October 2011 the MV Rena grounded on Astrolabe Reef off the Tauranga coast and northwest of Mötïtï Island. Within days, oil and debris from the MV Rena began washing ashore across many coastal areas of the Bay of Plenty. Kaitiakitanga Ngäti Awa became formally involved with the spill response organised by Maritime New Zealand and the Bay of Plenty Regional Council and participated in staffing of the Forward Operating Base set up at Regional Council’s Whakatane office. While considerable effort was centred on the Mount Maunganui area, Kaitiakitanga Ngäti Awa staff worked with Regional Council efforts to prepare, train and support community clean up teams in the eastern Bay of Plenty.

Almost 2 weeks after the grounding of the MV Rena containers, debris and weathered oil began washing ashore in Te Whänau Apanui between Waikawa and Lottin Point. On Thursday 20th October Regional Council and Ngäti Awa staff delivered safety equipment and oil spill kits to the Waihau Bay Fire Station where a briefing was held for community volunteers. We also completed site investigations of the shipping containers to assist in their eventual recovery. The kaupapa for Ngäti Awa was to quietly tautoko our Te Whänau Apanui whänau who know better than anyone how to care for their rohe moana. It was great to be able to lend assistance to the East Coast community who didn’t attract the same attention as the media friendly Papamoa area. If nothing else, many an East Coast poaka was fattened on bags of milk powder that washed ashore and local freezers were stocked with blocks of butter.

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NGÄTI AWA RESEARCH AND ARCHIVES TRUST AND WHAKAPAPA COMMITTEE Ko Pūtauaki te maunga, ko Ngāti Awa te iwi, ko Mataatua te waka. Kua whetūrangitia te paemate ki tua o Tawauwau. I tēnei wa kua hinga te totara o te waonui-a-Tane. Ko koe tēnā te whaea Onehou, nau nei i whakakīkī ngā whāwhārua o te mātauranga, i oti rangatira i a koe ngā mahi o ēnei komiti e rua. Ahakoa te tangi o te aroha, hāere, hāere, hāere. Ko te ihinuku, ko te ihirangi i urutomo atu ai ngā mate ki Matangireia. Apiti hono, tātai hono ngā uri o Ngāti Awa whanui kua ngaro ki te po tēnei tau, hāere, hāere, hāere. Toitū te whenua, ōtirā, ngā kanohi ora, ngā urupa kōrero o rātau mā. E ngā uri whānui o Ngāti Awa, rauhiti mai, tomo mai, kuhu mai ki tēnei pūrongo kōrero, arā, Te Roopu Whakarauemi Kōrero o Ngāti Awa me Te Roopu Whakahaere i ngā Whakapapa me ngā Rehita o Te Rūnanga o Ngāti Awa. Piki mai, kake mai, nau mai, hāere mai ki te hui-a-tau.

Ngāti Awa Research and Archives was established as the primary vehicle collating and gathering all information for our Ngāti Awa Settlement. It was established in Wellington in the late 1980s and later moved to Whakatāne. Our first manager was the late Ngahuia Rowson, then Beverley Hughes, Hiria Palmer, and the most recent, Noti Belshaw.

Further objectives include the primary repository of historical, cultural, customary information, photographs, taonga and any records regarding Ngāti Awa. It is likened to a storehouse of knowledge. The Trustees are responsible for ensuring the protection and preservation of the historical archives of Ngāti Awa. The trust continues to play an important role and carries out these responsibilities from the Rūnanga office, should any registered member wish to access any of the mentioned resources.

The role of the Ngāti Awa Whakapapa Committee is to ensure that all those who register with any of our twenty two hapū of Ngāti Awa meet the following criteria: I.

Can demonstrate whakapapa connections to at least one of the recognised ancestors, either blood line descent, legally adopted or recognised whangai;

II. Can demonstrate a whakapapa connection to an ancestor in a Ngāti Awa land block; III. Can demonstrate a connection to Ngāti Awa marae and be recognised by the whānau and hapū.

To register, an adult member, can complete an online registration at www.ngatiawa.iwi.nz, download the registration form from the website, or request a form be mailed out in the post. Once the completed and signed registration form has been sent in to the Rūnanga, it goes before the next Whakapapa Committee meeting for consideration. Children can also be registered at any age, but his must be done by an adult member.

An additional function is to review all births and deaths on a bimonthly basis as well as considering requests from members wishing to transfer from one primary hapū to another. Committee members often receive requests from hapū members to support and validate their whakapapa for endorsement purposes as well as assisting in the preparation of whānau whakapapa charts.

Some of the tangible benefits of being a member of Te Rūnanga o Ngāti Awa include; Education Grants and Scholarships, Hakinakina Grants, Hapū Grants, Internships and the use of Research and Archives. Our committee acknowledges that each of our uri are representatives of the past, present and future.

As part of Te Ara Poutama and Ko Ngāti Awa te Toki, Ngāti Awa Research and Archives have lead and participated in the following projects: 1. The Life and Living in advance Age Cohort – this study continues with The University of Auckland.

2. Mataatua Wharenui, Te Mānuka Tūtahi Marae – a publication which covers a brief history of the journey of the house but more so a recent account of the preparation undergone for the redevelopment of the whare, i.e. the spiritual clearing of the site enabling a clear pathway for construction, the mauri was also established to be the reciprocal of the life force, burying of a time capsule, laying of the four corner stone’s representing Pūtauaki mountain, Tarawera, Rangitaiki and Whakatāne Rivers, as well as the 22 stones placed along the back wall to represent the hapū and marae of Ngāti Awa. An account of the restoration, including all those involved with special note of the carvers and weavers, the rebuild and a final section devoted to the preparation, lead up and execution of the hiki tapu and then the grand opening on 17th September 2011. The second half of the book details accounts of 64 tupuna represented at Mataatua Wharenui and Te Mānuka Tūtahi Marae.

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3. Keith Channon Collection – on the 2nd of March 2012 a Memorandum of Understanding was signed between the Rūnanga and Mr Keith Channon recognising the gifting of a taonga collection which is made up of stone, carving, weaving, metal and photographic items which have come into Mr Channon’s possession over a course of many years. Some of these have been gifted by members of the public and Mr Channon has asked that all these taonga be given to Ngāti Awa to the benefit of whänau, hapū, marae, iwi and the local community of Whakatane. The taonga collection holds at least 1000 items and currently resides at Te Kōputu ā Te Whanga ā Toi.

The Ngāti Awa Research and Archives Trustees for 2011-2012 were, Sir Sidney Moko Mead (Chairman), Onehou Phillis, Te Rau o Te Huia Chapman-De Vos and Pouroto Ngaropō.

The Whakapapa Committee for 2011–2012 were, Pouroto Ngaropō (Chairman), Sir Sidney Moko Mead, Onehou Phillis, Te Rau o Te Huia Chapman-De Vos, Joe Mason.

Pouroto Ngaropo Chairman, Whakapapa Committee

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NGÄTI AWA CUSTOMARY FISHERIES AUTHORITY This report provides an overview of the activities of the Ngāti Awa Customary Fisheries Authority over the past twelve months, with a focus on the Mataitai application and the fresh water forum for Ohinemataroa, Rangitaiki and Tarawera.

Pataka We continue to distribute fish for tangihanga and this has been well received by marae. Over the past year we have distributed over one ton of fish. We would like to acknowledge Aotearoa Fisheries Limited (AFL) for their assistance in providing our Pataka fish. Pataka fish is accessed through the Rünanga.

Fresh Water This year we have been leading a fresh water forum for all local Iwi in relation to the three rivers, Ohinemataroa, Rangitaiki and Tarawera. Joe Mason and Charlie Bluett have been working with all our neighbouring Iwi to establish a fresh water Mataitai under the name of ‘Ohunga Wai Māori’.

Once we are in a position to move on the collective, representatives will be nominated by their respective Iwi. We will provide the Board with a briefing paper and recommended names for the forum at that time.

Mataitai The lodging of an application to establish Mataitai areas around key customary harvest areas along the coastline and our two off shore islands Rurima and Moutohora was recently approved by the Board. We have now received a map (pictured) of the areas from the Ministry of Fisheries to support our application.

The next step in the process is to lodge the application with the Ministry and then await submissions.

Authority Members Joe Mason, Brian Simpson, Te Kei Merito, Helen Sisley, Pitau Williams, Bill Kerrision and Charles Bluett.

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TE KÄHUI KAUMÄTUA Te tai rā, te tai rā E pari ana te tai ki hea?

E pari ana ki te kauheke, kaumatua

Papaki tü ana ngā tai ki Te Reinga Ka pō, ka āo, ka awatea

During the year the Kāhui Kaumātua has held a number of activities, one of which was has been to consider the role of ‘Te Kooti Rangatahi’ or Marae Youth Justice.

What is Te Kooti Rangatahi? This kaupapa was initiated by Judge Hemi Taumaunu and first rolled out in Gisborne. The Youth Court Judges noticed that there was a propensity for recidivism within the ranks of Maori offenders passing through their courts and they sought a way to change this.

Holding court sittings on the marae is not a new concept; in days of old they were for pakeke offending. This initiative addresses young offenders between the ages of 15 – 17 years.

The Kähui Kaumatua consider this a very important kaupapa and are very supportive of the inventiveness shown by the Judges of the Youth Justice System. It’s been identified that there is a clear loss of contact between our Rangatahi and the marae. In some instances the parents themselves have lost contact with the marae. By showing a pakeke face from one’s hapu at Te Kooti Rangatahi, this is seen as one way of re-introducing the youth and their whänau to their marae. Another is demonstrating good role models that our Rangatahi can aspire to. Sometimes because of the dysfunctional nature of the whänau, good role modelling is not found at home.

This kaupapa is on-going and is held at Wairaka Marae every 1st Friday of the month.

A visit to Waitangi Early this year the Kahui Kaumatua responded to an invitation from Te Tii Marae, in Waitangi, to attend the celebration of the signing of the Treaty of Waitangi as special guests. Our waka Te Toi o Mataatua, along with a crew of Kaihoe also attended the celebrations.

The vans left early Friday morning in order to reach Te Tii at 4pm for their pöhiri. After comfort stops here and kai stops there, the destination was reached with a bit of time to spare and Ngāti Awa were duly welcomed onto the marae by the locals.

The fanfare of the occasion is played out in Waitangi at this time each year. The fleet of waka from around the country mingling with those of the New Zealand Navy was a sight to behold and everyone commented on enjoying the opportunity to experience the march to the Treaty Marae, first hand. According to Joe Mason and Pairama Ranapia (group leaders), a great time was had by all.

I take this time to acknowledge our Chairman, Rangitukehu Paul and our Vice Chairman, Hemana Eruera, our Kāhui Kaumātua Committee and all our kuia and koroua of Ngäti Awa for their work and stewardship of the kawa, and tikanga of Ngāti Awa. Tenā. E ngā kauheke me kii te Māuri o Ngāti Awa, he mihi kau ana ki a koutou.

“Ma te werawera o ou koutou mata e kai ai koutou i te haunga ahi o te kai” No reira tenā koutou katoa.

Charlie Bluett Secretary, Kāhui Kaumātua Ngāti Awa Kāhui Kaumātua Representatives: 1. Hemana Eruera (Vice Chair) Pahipoto 2. VACANT Ngäi Taiwhakaea 3. Pairama Ranapia Te Patuwai 4. Matekino Raerino Ngäti Hokopu ki Hokowhitu 5. Onehou Phillis Warahoe 6. Joe Mason Ngäti Pukeko 7. Tupari Clay Ngäti Hokopu ki Wairaka 8. Pat Davies Wharepaia 9. Jackie Stewart Ngäti Hikakino 10. Robert Gardiner Te Kahupaake

26 27

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

Rorakawa Umuhuri Rangitukehu Paul (Chair) Noki Te Poono VACANT Mickey Taylor Eric Moses Hirini Mead Te Tuhi Mate Ringaono Williams Taiwhakaripi Pile Tiaki Peri Amohaere Tangitu

Ngäti Rangataua Ngäi Tamaoki Ngäti Hamua Ngäti Maumoana Ngäi Tamawera Ngä Maihi Ngäti Awa ki Poneke Ngäi Tamapare Ngäti Te Rangihouhiri II Ngäti Awa ki Tamakimakaurau Tuariki Te Täwera

Annual Report 2011-2012

FINANCIAL STATEMENTS 29

Statements of Comprehensive Income

30

Statements of Changes in Equity

31

Statements of Financial Position

32

Statements of Cash Flows

33

Notes to the Financial Statements

65

Directory of Officers

66

Auditors’ Report

Annual Report 2011-2012

28

TE RÜNANGA O NGÄTI AWA STATEMENTS OF COMPREHENSIVE INCOME For the year ended 30 June 2012 Group

Revenue Net financing income Total income

Note 6 7

2012 $000 5,762 1,840 7,602

2011 $000 6,129 4,146 10,275

Parent 2012 $000 867 1,536 2,403

2011 $000 1,316 1,762 3,078

Less expenses Share of associate’s net loss after tax (Loss)/profit before tax for the year

8

7,736 (134)

9,448 827

3,217 (814)

3,272 (194)

Less tax expense Profit for the year from continuing operations

9

207 (341)

138 689

(814)

(194)

(341)

689

(814)

(194)

(738) 397 (341)

346 343 689

(814) (814)

(194) (194)

(4) (4)

216 216

-

-

(345)

905

(814)

(194)

(742) 397 (345)

562 343 905

(814) (814)

(194) (194)

(Loss)/profit for the year Attributable to: Equity holders of Te Rūnanga o Ngāti Awa Non-controlling interest

Other Comprehensive Income: Other financial assets designated as available-for-sale Total other comprehensive (loss)/income

10

Total comprehensive (loss)/income for the year Attributable to: Equity holders of Te Rūnanga o Ngāti Awa Non-controlling interest

The accompanying accounting policies and notes form part of the financial statements.

28 29

Annual Report 2011-2012

TE RÜNANGA O NGÄTI AWA STATEMENTS OF CHANGES IN EQUITY For the year ended 30 June 2012 Group Note Equity attributable to equity holders: Equity at the beginning of the year

Parent

2012 $000

2011 $000

2012 $000

2011 $000

94,028

93,466

81,262

81,456

(Loss)/Profit for the year

10

(738)

346

(814)

(194)

Other comprehensive income: - Revaluation Gains Total other comprehensive income

10

(4) (4)

216 216

-

-

(742)

562

(814)

(194)

93,286

94,028

80,448

81,262

5,008

4,665

-

-

397

343

-

-

-

-

-

-

397

343

-

-

300 (245) 55

-

-

-

5,460

5,008

-

-

98,746

99,036

80,448

81,262

Total comprehensive (loss)/income Te Rūnanga o Ngāti Awa equity at the end of the year Equity attributable to non-controlling interest: Equity at the beginning of the year Profit for the year Other comprehensive income: Total other comprehensive income Total comprehensive income

10

Transactions with owners: Contributed equity during the year Dividend declared during the year

Non-controlling interest equity at the end of the year Total equity at the end of the year

The accompanying accounting policies and notes form part of the financial statements.

Annual Report 2011-2012

30

TE RÜNANGA O NGÄTI AWA STATEMENTS OF FINANCIAL POSITION As at 30 June 2012

Reserves Accumulated surplus Non-controlling interest Equity This is represented by: What we own: Current assets Cash and cash equivalents Accounts receivable Owing by subsidiaries Livestock on hand Investments Other assets Non-current assets Investments Investment properties Fish quota Farm woodlots Forestry land assets Property, plant and equipment Intangible assets Other assets Owing by subsidiaries

Group

Parent

2011 $000

2012 $000

26,396 66,890 5,460 98,746

23,410 70,618 5,008 99,036

23,907 56,541 80,448

20,917 60,345 81,262

12 13 29 14 15

9,006 582 2,444 1,006 82 13,120

22,776 1,480 2,017 21 26,294

159 318 755 9 1,241

4,389 944 1,060 6,393

15 18 22 19 20 21 22

31,999 9,128 3,520 1,215 18,173 31,002 1,460 96,497

22,467 9,005 3,520 1,215 16,771 27,878 4,061 64 84,981

48,515 2,257 23,574 220 7,898 82,464

48,517 2,083 20,583 523 64 7,898 79,668

109,617

111,275

83,705

86,061

Note 11 10 10

29

Total assets

2012 $000

2011 $000

Less what we owe: Current liabilities Accounts payable and accruals Income received in advance Current portion of term loans Ngäti Hikakino and Ngai Te Rangihouhiri II Hapu

23 24 26 25

Non-current liabilities Income received in advance Term loans

914 1,117 45 2,552 4,628

1,139 1,124 45 4,043 6,351

579 126 2,552 3,257

666 90 4,043 4,799

24 26

4,201 2,042 6,243

4,350 1,538 5,888

-

-

Total liabilities

10,871

12,239

3,257

4,799

Net assets attributable to equity holders

98,746

99,036

80,448

81,262

TK Merito Chairman - 28 September 2012

EP Ratahi-Pryor Chief Executive Officer - 28 September 2012

The accompanying accounting policies and notes form part of the financial statements.

30 31

Annual Report 2011-2012

TE RÜNANGA O NGÄTI AWA STATEMENTS OF CASH FLOWS For the year ended 30 June 2012 Net cash from/(used in) operating activities Cash provided from: Grant and funding income Interest income received Farming operations income Other operating receipts Rental income

Note

Cash applied to: Payments to suppliers and employees Purchase of livestock Grants paid Interest expense paid Income tax paid

Net cash generated from operating activities

27

Net cash from/(used in) investing activities Cash provided from: Proceeds from the sale of equities Dividend income received Transfer of Wireless Network Fixed Assets Cash applied to: Purchase of investments Purchase of other non-current assets Wharenui and Ngäti Awa Complex additions Net cash generated from investing activities Net cash from financing activities Cash provided from: Income Received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Realisation of bonds Repayment of loans from subsidiaries Proceeds from non-controlling interest parties Loan advanced from third party Cash applied to: Dividends paid to non-controlling interest parties Loans advanced to external organisations Loans advanced to subsidiaries Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri Repayment of term loans Net cash generated from financing activities Net (Decrease) in Cash Balances Cash Balances at the Beginning of the Year Cash Balances at the End of the Year

Annual Report 2011-2012

12

2011 $000 1,759 2,004 1,529 145 2,031 7,468

Parent 2012 2011 $000 $000 1,056 375 537 832 360 203 66 66 2,019 1,476

5,834 69 233 63 232 6,431

6,969 106 291 56 103 7,525

2,622 263 2,885

2,739 306 3,045

248

(57)

(866)

(1,569)

414 414

5,268 384 5,652

1,010 1,010

994 1,089 2,083

11,541 333 2,990 14,864

8,213 1,656 3,495 13,364

309 2,990 3,299

606 3,499 4,105

(14,450)

(7,712)

(2,289)

(2,022)

151 1,300 300 457 2,208

179 1 180

151 521 672

179 179

245 1,531 1,776

15 159 174

216 1,531 1,747

15 62 77

432

6

(1,075)

102

(13,770) 22,776 9,006

(7,763) 30,539 22,776

(4,230) 4,389 159

(3,489) 7,878 4,389

2012 $000 575 1,347 1,465 748 2,544 6,679

Group

The accompanying accounting policies and notes form part of the financial statements.

32

TE RÜNANGA O NGÄTI AWA NOTES TO FINANCIAL STATEMENTS For the year ended 30 June 2012 1

General information Te Rūnanga o Ngāti Awa (the Rūnanga) and its subsidiaries (together the Group) manages the cultural, social, political and economic base of the Ngāti Awa iwi. The Rūnanga was incorporated under the Te Rūnanga o Ngāti Awa Act 1988, which was subject to the Maori Trust Board Act 1955. Under Section 5 of Te Rūnanga o Ngāti Awa Act 2005, the Rūnanga ceased to be a Maori Trust Board from 25 March 2005, but continues as the same body as established by the Te Rūnanga o Ngāti Awa Act 1988.

The Rūnanga is domiciled in New Zealand. The address of the registered office is 10 Louvain Street, Whakatāne.

The financial statements of the Rūnanga are for the year ended 30 June 2012. The financial statements were authorised for issue by the Chairman and Chief Executive Officer on behalf of the Board of Representatives on 28 September 2012.

2

Summary of significant accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.

These policies have been consistently applied to all the years presented, unless otherwise stated.

a)

Basis of preparation The financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand which is New Zealand equivalents to International Financial Reporting Standards (“NZ-IFRS”), and as required by the Charter of Te Rūnanga o Ngāti Awa. Statutory base The Rūnanga is a Public Benefit Entity (“PBE”) and therefore the interpretations of NZ-IFRS as appropriate to PBEs have been applied. A PBE is an entity whose primary objective is to provide goods or services for community or social benefit and where any equity has been provided with a view of supporting that primary objective rather than for a financial return to equity holders.

The financial statements are presented in New Zealand Dollars (NZD) rounded to the nearest thousand. The measurement base applied is historical cost, as modified by the revaluation of certain assets and liabilities as identified in these accounting policies.

The Group consists of the Rūnanga and its subsidiaries, associates, and joint ventures as listed in Note 28, Investments in Subsidiaries and Associates. Investments in subsidiaries and associates are carried at cost in the Rūnanga’s financial statements.

Basis of Preparing Consolidated Financial Statements Subsidiaries Subsidiaries are those entities controlled, directly or indirectly, by the Rūnanga, that is, the Rūnanga has the power to govern the financial and operating policies of the entity so as to obtain benefits from their activities. The Rūnanga’s consolidated subsidiary companies generally have an accompanying shareholding of more than one half of the voting rights. The Rūnanga’s consolidated subsidiary trusts are where the Rūnanga appoints all the trustees of the trust and their activities are conducted on behalf of the Rūnanga.

The financial statements of subsidiaries are included in the consolidated financial statements using the acquisition method.

The consideration for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interest issued by the Rūnanga. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Rūnanga recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.

Investments in subsidiaries are accounted for at cost less impairment. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments.

Investments in subsidiaries are accounted for at cost less impairment. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated.

Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

32 33

Annual Report 2011-2012

Associates Associates are entities in which the Rūnanga has significant influence over the operating and financial policies, but not control, generally accompanying a shareholding between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recorded at cost.

The Rūnanga’s share of the net surplus of associates is recognised in the Statement of Comprehensive Income, after adjusting for differences between the accounting policies of the Rūnanga and associates. The Rūnanga’s share of other gains and losses of associates is recognised as a component of movements in equity. Dividends received from associates are recognised in the Statement of Comprehensive Income.

Joint Venture Receivables The joint ventures are established by a contractual agreement. The Rūnanga’s share of the net surplus of the joint ventures are recognised in the Statement of Comprehensive Income. The investment held on the Statement of Financial Position reflects the Rūnanga’s share of cash receivable from the joint venture.

Transactions with Non-Controlling Interests The group treats transactions with non-controlling interests as transactions with equity owners of the group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

Transactions Eliminated on Consolidation The effects of intra-group transactions are eliminated in preparing the consolidated financial statements. b)

Revenue Rental Income Rental income is recognised in the Statement of Comprehensive Income on a straight line basis over the term of the lease.

Grant and Funding Income Grant and funding income is recognised in the Statement of Comprehensive Income when the terms and conditions associated with the grants have been met and the grants are receivable. Grants relating to the provision of services are deferred and recognised in the Statement of Comprehensive Income over the period necessary to match those grants with their associated costs that the grants are intended to compensate.

Government Grants Government grants are assistance provided by the government in the form of transfers of resources to the Group in return for past or future compliance with certain conditions relating to the operating activities of the Group. Government grants are recognised when there is reasonable assurance that the grants will be received and that the Group will comply with conditions attached to them. Government grants are recognised in the Statement of Comprehensive Income.

Other Income Other income is recognised in the Statement of Comprehensive Income when the revenue associated with the transactions can be measured reliably for the rendering of goods and services. Goods and services are recognised when the significant risks and rewards of ownership have been transferred, the Rūnanga retains neither involvement nor control over the goods sold, it is probable that economic benefits will flow to the Rūnanga and the costs incurred in respect of the transaction can be measured reliably.

Net Financing Income Net financing income represents financing income less financing expenses. Financing income comprises interest income received on funds invested and dividend income that are recognised in the Statement of Comprehensive Income.

Financing expenses comprise interest paid on borrowings. Net financing income includes any revaluation gains or losses on investments in shares.

Interest income is recognised in the Statement of Comprehensive Income as the income accrues on an effective interest basis. Any fees and directly related transaction costs that are an integral part of earning interest income is recognised over the expected life of the investment, that is, these costs are recognised evenly in proportion to the investment amount outstanding over the period to maturity.

Dividend income is recognised in the Statement of Comprehensive Income on the date the Rūnanga’s right to receive payment is established.

c)

Expenses Operating lease payments where the lessor effectively retains substantially all the risks and rewards of ownership of the leased items are included in equal instalments over the term of the lease and expensed to the Statement of Comprehensive Income. Lease incentives received are recognised over the term of the lease as an integral part of the total lease payments.

Annual Report 2011-2012

34

d)

Taxation Income Tax Income tax on profits for the period comprises current and deferred tax. It is recognised in the Statement of Comprehensive Income as tax expense, except when it relates to items directly credited to equity, in which case it is recorded in equity, or where it arises from the initial accounting for a business combination, in which case it is included in the determination of goodwill.

Current Tax Current tax is the expected tax payable on taxable income for the period, based on tax rates (and tax laws) which are enacted or substantively enacted by the reporting date and including any adjustments for tax payable in previous periods. Current tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).

Deferred Tax Deferred tax is accounted for using the tax statement of financial position liability method. Deferred tax arises by providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes.

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets, including those related to the tax effects of income tax losses and credits available to be carried forward, are recognised only to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences or unused tax losses and credits can be utilised.

Current and deferred tax assets and liabilities are offset only to the extent that they relate to income taxes imposed by the same taxation authority and there is a legal right and intention to settle on a net basis and it is allowed under tax law.

e)

Cash and Cash Equivalents Cash and cash equivalents includes petty cash, deposits held at call with banks, and other short term highly liquid investments with original maturities of three months or less.

f)

Accounts Receivable and Other Assets Accounts receivables are recognised initially at fair value and subsequently measured at amortised cost on an effective interest basis, less provision for doubtful debts. Bad debts are written off during the year in which they are identified.

A provision for impairment of accounts receivable is established when there is objective evidence that the RĹŤnanga will not be able to collect all amounts due according to the original terms of receivables.

g)

Livestock Livestock is carried at fair value less point of sale costs, where fair value is based on the market price of livestock of similar age, breed, and genetic merit.

h)

Investment in Shares Investments in shares are carried at fair value unless they are not quoted in an active market and their fair value cannot be reliably measured. The fair value of such investments is reliably measurable where the variability in the range for a reasonable fair value estimate is not significant or probabilities of the various estimates within the range of fair values can be reasonably assessed and used in estimating fair value. Investments in subsidiaries and associates are carried at cost.

i)

Investment Properties Investment properties are stated at market valuation as determined every year by an independent registered valuer. Any movement on revaluation is recognised in the Statement of Comprehensive Income.

j)

Fish Quota Fish quota shares received by way of settlement are recognised at their fair value at the date of settlement and subsequently carried at cost less impairment. Fish quota shares have an indefinite life and are therefore not amortised, although they are assessed annually for impairment.

k)

Farm Woodlot The Farm Woodlot asset represents standing trees at fair value less estimated point of sale costs. The Company obtains an independent valuation of the Farm Woodlot asset every three years. The most recent valuation, dated 30 June 2011, was prepared by PF Olson Limited over the Pine Woodlot, and by Chandler Fraser Keating Limited over the Eucalyptus Woodlot.

Any movement in valuation is recognised in the Statement of Comprehensive Income.

l)

Forestry Land Assets Forestry land assets represent the land assets owned with long term licences to forestry companies. Forestry land assets are stated at fair value as determined by an independent registered valuer. Any movement in fair value is recognised in the Statement of Comprehensive Income.

m)

Property, Plant & Equipment All owned items of property, plant and equipment, except the NgÄ ti Awa Farm, are recorded at cost less accumulated

34 35

Annual Report 2011-2012

depreciation and impairment losses. 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 Rūnanga and the cost of the item can be measured reliably.

Increases in the carrying amount arising on revaluation of property, plant and equipment are credited to asset revaluation reserve in equity. Decreases that offset previous increases of the same asset are charged against asset revaluation reserves directly in equity, all other decreases are charged to the Statement of Comprehensive Income.

Ngāti Awa Farm Farm vehicles, plant and equipment owned by the farm at 19 December 1989 have been recorded at estimated market valuation (deemed to be cost) at that date less accumulated depreciation. Purchases since that date are recorded at cost less accumulated depreciation and impairment losses.

Farm land has been recorded at deemed cost. Farm buildings have been recorded at deemed cost less accumulated depreciation. For the purpose of the Rūnanga’s parent financial statements, these assets are classified as cultural assets.

However, in the Rūnanga’s Group financial statements, this asset is classified as property, plant and equipment. n)

Cultural Assets The Cultural Assets represent assets that are held on the basis of their cultural value and are not necessarily expected to provide a commercial return. Due to the nature of these assets it is unlikely that these properties would be sold.

The Cultural Assets have been recorded at deemed cost less accumulated depreciation and impairment losses with the exception of the Mataatua Wharenui. The Mataatua Wharenui is carried at an assigned value on receipt from the Crown plus capital improvements.

o)

Depreciation Depreciation is recognised in the Statement of Comprehensive Income on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Depreciation is used to allocate the cost (deemed cost), less any residual value, over an asset’s useful life. Land is not depreciated.

The estimated useful lives for the current and comparative periods are as follows: Farm Woodlots Buildings Cultural Assets Motor Vehicles Office Furniture and Equipment Farm Equipment

n/a 40 years n/a 3 - 15 years 3 - 10 years 3 - 20 years

Depreciation methods, useful lives and residual values are reassessed at every reporting date. p)

Financial Assets Classification The Rūnanga classifies its financial assets as “at fair value through profit or loss”, “loans and receivables”, and “other financial assets designated as available-for-sale”. The classification depends on the purpose for which financial assets were acquired. Management determines the classification of its financial assets at initial recognition and re-evaluates this designation at every reporting date.

(i)

Financial assets at fair value through profit or loss Financial assets designated at fair value through profit or loss at inception are financial instruments that are not classified as held for trading but are managed, and their performance is evaluated on a fair value basis in accordance with the Rūnanga’s documented investment strategy.

(ii)

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. They arise when the Rūnanga provides money, goods, or services directly to a debtor with no intention of selling the receivable. They are included in current assets, except for those with maturities of greater than twelve months after the statement of financial position date which are classified as non-current assets. Loans and receivables are included in accounts receivable and owing by subsidiaries in the Statement of Financial Position.

(iii)

Other financial assets designated as available-for-sale Other financial assets designated as available-for-sale are non-derivatives that are either designated in this category or not classified in any of the other financial asset categories. They are included in non-current assets unless management intends to dispose of the investment within twelve months of the balance date.

Recognition and measurement Purchases and sales of financial assets are recognised on trade date - the date on which the Rūnanga commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried

Annual Report 2011-2012

36

at fair value through the profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the statement of comprehensive income. Financial assets are derecognised when rights to receive cash flows from the financial assets have expired or have been transferred and the Rūnanga has substantially transferred all the risks and rewards of ownership.

Financial assets carried at fair value through profit or loss are subsequently carried at fair value. Loans and receivables are subsequently carried at amortised cost using the effective interest method. Gains and losses arising from changes in the fair value of financial assets are presented in the Statement of Comprehensive Income in the period in which they arise.

Changes in the fair value of other financial assets classified as available-for-sale are recognised in other comprehensive income. When securities are sold or impaired, the accumulated fair value adjustments are included in the Statement of Comprehensive Income as gains and losses on investment securities.

Other financial assets includes long term investments in unlisted shares and bonds held by the Rūnanga which are stated at fair value. Changes in fair value are recognised in the revaluation reserve unless there is a permanent impairment loss which is recognised directly in the Statement of Comprehensive Income.

The Rūnanga assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as other financial assets designated as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence exists for other financial assets, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the Statement of Comprehensive Income) is removed from equity and recognised in the income component of the Statement of Comprehensive Income. Impairment losses recognised on equity instruments are not reversed through the Statement of Comprehensive Income. q)

Measurement of Non-financial Assets The carrying amounts of the Rūnanga’s non-financial assets are reviewed at each balance date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated. If the estimated recoverable amount of an asset is less than its carrying amount, the asset is written down to its estimated recoverable amount and an impairment loss is recognised in the Statement of Comprehensive Income.

The estimated recoverable amount of assets is the greater of their fair value less costs to sell and value in use. Value in use is determined by estimating future cash flows from the use and ultimate disposal of the asset discounting these to their present value using a pre-tax discount rate that reflects current market rates and the risks specific to the asset.

For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

An impairment loss on non-financial assets which are carried at fair value, is applied to the corresponding asset revaluation reserve but only to the extent that prior year gains are available to offset the impairment loss. All other impairment losses are recognised in profit or loss for the period.

r)

Accounts Payable and Other Liabilities Accounts payable and other liabilities are measured initially at fair value and subsequently at amortised cost using the effective interest method.

s)

Provisions A provision is recognised when the Rūnanga has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and this outflow of economic benefits can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market rates and, where appropriate, the risks specific to the liability.

t)

Term Loans Term loans are recognised initially at fair value, net of transaction costs incurred. Term loans are subsequently stated at amortised cost. If the Rūnanga does not have an unconditional right to defer payment of a liability for at least twelve months after balance date, then the term loan will be classified as a current liability.

u)

Employee Benefits Salaries, Wages, Annual Leave, and Sick Leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulated sick leave expected to be settled within twelve months of reporting date, are recognised in other payables in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave recognised when the leave is taken and measured at the rates paid or payable.

Bonus Plans The Rūnanga recognises a liability and an expense for bonuses where contractually obliged or where there is past practice that has created a constructive obligation.

36 37

Annual Report 2011-2012

Long Service Leave Long service leave benefits are accrued in other payables using the present value of net future cash flows. v)

Goods and Services Tax These financial statements have been prepared on a basis exclusive of GST with the exception of settlement costs, costs directly associated with residential property, accounts receivable and accounts payable that have been included on a GST inclusive basis.

w)

Leases Operating leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the profit and loss component of the statements of comprehensive income on a straight line basis over the period of the lease.

x)

Intangible assets Software costs Software costs have a finite useful life. Software costs are capitalised and written off over the useful economic life of 2 to 5 years.

Costs associated with developing or maintaining computer software programs are recognised as an expense as incurred.

Costs that are directly associated with the production of identifiable and unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets.

Direct costs include the costs of software development employees and an appropriate portion of relevant overheads.

Carbon Credits Intangible assets include carbon credits acquired by way of a Government grant and are initially recognised at fair value at the date of acquisition. Following initial recognition, these intangible assets are carried at cost and are tested for impairment annually and whenever there is an indication that impairment exists.

y)

Comparative amounts Comparative amounts are from the audited financial statements for the year ended 30 June 2011. Certain amounts in the comparative information have been reclassified to ensure consistency with the current year’s presentation.

3

Changes in Accounting Policies

(i)

The following new standards and amendments to standards are mandatory for financial years commencing after 1 July 2011 and have been adopted in these financial statements: NZ IAS 24, Related Party Disclosures (revised, effective from 1 January 2011) The revised standard simplifies the definition of related party and clarifies the intended meaning of the definition. The Rūnanga has adopted the standard for the year ending 30 June 2012. This standard has not led to any significant impact on the Group financial statements.

FRS 44, New Zealand Additional Disclosures (effective from 1 July 2011) This standard sets out New Zealand specific disclosures for entities that have adopted New Zealand equivalents to International Financial Reporting Standards (NZ IFRSs). The Standard supports the objective of harmonising financial reporting standards in Australia and New Zealand. The Group has adopted the standard for the year ending 30 June 2012.

This standard has not led to any significant impact on the Group financial statements.

Harmonisation Amendments (effective from 1 July 2011) The Accounting Standards Review Board issued the Harmonisation Amendments for the purpose of harmonising Australian and New Zealand Standards with source IFRSs to eliminate many of the differences between the Standards adopted in Australia and New Zealand. The amendments remove the requirement for an independent valuer to conduct the valuation of investment property and property, plant and equipment. The amendments also provide the option to account for investment property using either cost or fair value model. These changes have not had a significant impact on the Group financial statements.

Amendments to NZ IFRS 7 Appendix E – New Zealand specific additional disclosure requirements applicable to financial institutions (effective from March 2011) The scope of Appendix E is now limited to non-bank deposit takers. All references to the term “financial institution” in Appendix E is replaced with the term “deposit taker” as defined in the Reserve Bank of New Zealand Act 1989. Non-bank deposit takers are subsumed within the definition of deposit taker in that Act. The Rūnanga has adopted this amendment.

As a result, the requirements of NZ IFRS 7 Appendix E will no longer apply to the Rūnanga including disclosure of the interest rate repricing table.

Annual Report 2011-2012

38

(ii)

Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for the Rūnanga’s accounting periods to which the Rūnanga has not early adopted. The standards relevant to the Rūnanga are as follows: NZ IFRS 9, Financial Instruments (effective from 1 January 2013) The standard specifies the classification and measurement criteria for financial assets and is designed to replace NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IFRS 9 requires an entity to classify financial assets at either amortised cost or fair value on the basis of; the entity’s business model for managing the financial assets; and the contractual cash flow characteristics of the financial asset. The Group will adopt the standard for the year ending 30 June 2014. The adoption of this standard is not expected to significantly impact the Group’s recognition of financial assets or liabilities.

4

Financial Risk Management Financial Risk Factors The Rūnanga’s activities may expose it to a variety of financial risks: market risk, credit risk, and liquidity risk. The Rūnanga’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Rūnanga’s financial performance.

Risk management is carried out by management under policies approved by the Board. Management identifies, evaluates and manages financial risks. The Board provides written principles for overall risk management, as well as written policies covering specific areas such as the investment of excess liquidity.

Market Risk Market risk has several principal components being currency risk, interest rate risk, and price risk.

Currency risk is the potential loss arising from the decline in the value of a financial instrument, due to changes in foreign exchange rates or their implied volatilities. The Rūnanga has equity and unit trust investments with exposure to movements in foreign currency exchange rates. This risk between the New Zealand dollar and other foreign currencies are unhedged as there are no certainty around the exposures.

Interest rate risk is the potential loss arising from the change in the value of a financial instrument, due to changes in the market interest rates or their implied volatilities. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates, and fair value interest rate risk is the risk that the fair value of the financial instrument will fluctuate because of changes in market interest rates.

Price risk is the potential loss arising from the change in market prices of equity and unit trust investments. The exposure to price risk arising from investments in equity securities and unit trusts is managed by the Rūnanga through a diversified portfolio as outlined in the investment mandate. The Rūnanga’s equity investments are publicly traded and risk is managed through measuring performance against the NZX 50 Gross Index and ASX 200 Gross Index.

The Rūnanga has significant interest bearing assets (term deposits and New Zealand corporate bonds) that are currently exposed to cash flow interest rate risk where the income and operating cash flows are dependent on the changes in the market interest rates. The Rūnanga manages this risk by placing funds on deposit for various maturities ranging from 30 days to twelve months. The Rūnanga is not exposed to fair value interest rate risk. The Rūnanga currently has no interest rate risk relating to interest bearing liabilities as the term loans are interest free for the first 10 years.

Credit Risk Credit risk is the potential loss arising from a decline in value of an instrument due to a deterioration in the credit worthiness of the issuer of the instrument. The Rūnanga has two concentrations of credit risk as the term deposits are spread across two banks being ANZ National Bank Limited and ASB Bank which both have a Standard and Poors rating of AA-. The Rūnanga is also exposed to credit risk on its corporate bond investments, and it manages this by investing in corporate bonds with a Standard & Poors rating of at least BBB. The Rūnanga manages its credit risk by only placing funds on deposit with institutions that have a strong capacity to meet financial commitments.

Term Deposits Concentrations of Credit Risk:

Group

ANZ National Bank Limited ASB Limited BNZ Limited Westpac New Zealand Limited

38 39

Parent

2012 $000

2011 $000

2012 $000

2011 $000

5,505 2,048 7,553

4,510 9,207 2,700 3,502 19,919

-

1,960 1,019 502 3,481

Annual Report 2011-2012

Liquidity Risk Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities, and the ability to close out market positions. The Rūnanga manages liquidity risk through maintaining flexibility in the funding available for investing activities and meeting operational expenditure requirements.

Capital Risk Management The Rūnanga manages net assets attributable to nga uri o nga hapu o Ngāti Awa as its capital. The Rūnanga’s objectives when managing capital are to safeguard their ability to continue as a going concern, so it can continue to provide benefits for nga uri o nga hapu o Ngāti Awa and to maintain an optimal capital structure to reduce the cost of capital. The Rūnanga does not have any externally imposed capital requirements.

Fair Value Estimation The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial position date. The quoted market price used for financial assets held by the Rūnanga is based on the current bid price.

The fair value of financial assets that are not traded in an active market is determined by using valuation techniques. The Rūnanga uses a variety of methods and makes assumptions that are based on market conditions existing at balance date.

Techniques include estimated discounted cash flows which are used to determine fair value for the financial instruments with no quoted market price.

The nominal value less impairment provision of accounts receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Rūnanga for similar financial instruments.

5

Critical Accounting Estimates and Judgements Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events and are believed to be reasonable under the circumstances.

The Rūnanga makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Impairment The Rūnanga tests annually whether an asset is impaired by assessing whether events or circumstances indicate the carrying value may not be recoverable.

Investment Property The fair value of investment property is determined by an independent valuer, or by a person sufficiently experienced to conduct a valuation and their work has been subject to review by an independent valuer, this has been reviewed in note 18.

Fair Value of Other Financial Assets The fair value of financial instruments that are not traded in an active market are determined by using valuation techniques.

The Rūnanga uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at each statement of financial position date. The Rūnanga has performed a discounted cash flow analysis for various financial assets that were not traded in active markets, these are included within note 36.

Annual Report 2011-2012

40

6

Revenue

Group 2012 $000 540 1,902 1,746 1,574 5,762

2011 $000 1,589 1,884 1,914 742 6,129

2012 $000 441 66 360 867

2011 $000 941 66 309 1,316

Interest Income Dividend Income Investment Gains Total Financing Income

1,258 414 231 1,903

1,983 384 1,835 4,202

526 1,010 1,536

768 994 1,762

Interest Expense Total Financing Expense

63 63

56 56

-

-

1,840

4,146

1,536

1,762

2012 $000 139

2011 $000 144

2012 $000 -

2011 $000 -

72 13 336 402

78 15 1,617 403

35 7 36 192

34 10 189

23 22 109 407 85 456 329 528 233 70 8 112 38 233

17 20 456 1,196 394 279 423 643 291 129 11 90 47 134

12 13 295 191 208 263 5 11 17

7 77 728 89 111 303 3 10 5

7 1,063 (180) 117 72 109 1,711 1,222 7,736

6 64 247 1,747 997 9,448

117 28 78 1,127 582 3,217

2 29 170 997 508 3,272

Note Grant Income Farming Operations Income Rental Income Other Income

7

Net Financing Income

Net Financing Income

8

Parent

Expenses

Group

Administration Fees Auditors Remuneration (PricewaterhouseCoopers) - Audit Fees - Fees for Other Assurance Services Bad Debts Board Members Fees and Expenses Consultants Fees - Accounting and Tax - Farm advisory - Legal - Projects - Wireless network - Other Depreciation / Amortisation Farming Operations Expenditure Grants and Sponsorships Installation Costs Operating Leases Rates Rent Repairs and maintenance Revaluation (gains)/losses - Farms - Forests - Properties - Mataatua Wharenui Telecommunication Expenses Travel and Accommodation Wages and Salaries Other Expenses

40 41

Parent

Annual Report 2011-2012

9

Tax Expense Reconciliation of the Prima Facie Income Tax Payable on Profit with the Income Tax Expense Charged: (Loss)/Profit before Tax for the Year Less: Exempt Loss from Charitable Activities (Exempt Tax) Taxable Profit/(Loss) before Tax for the Year

2012 $000 (134) 937 803

Group

2011 $000 827 208 1,035

2012 $000 (814) 814 -

Parent

2011 $000 (194) 194 -

Income Tax Expense at 17.5% on Taxable Profit, (2011: 19.5%)

141

202

-

-

Non-taxable Income Non-deductible Expenses Prior period adjustment Income Tax Expense

(4) (97) 207

(5) 100 (159) 138

-

-

25.8%

13.3%

0.0%

0.0%

207 (83) (34) (46) 44

138 (90) (31) (107) 159 69

-

-

53

19

131

131

Effective Tax Rate (%) Tax Payable Income Tax Expense Taxation Paid Imputation Credits Attached to Dividends Received Resident Withholding Tax Paid Prior period adjustment Tax Payable Imputation Credit/Maori Authority Tax Credit Account Imputation credits available to equity holders in subsequent reporting periods

10 Equity Group 30 June 2012 Balance at the Beginning of the Year Profit / (loss) for the Year Revaluation Gains Dividend declared during the year Contributed equity during the year Transfer to Mataatua Wharenui Reserve Balance at the End of the Year

Non Controlling Interest $000 5,008 397 (245) 300 5,460

30 June 2011 Balance at the Beginning of the Year Profit for the Year Revaluation Gains Transfer to Mataatua Wharenui Reserve Balance at the End of the Year

4,665 343 5,008

Asset Revaluation Reserves $000 10,537 (4) 10,533

Other Reserves $000 12,873 2,990 15,863

Accumulated Surplus $000 70,618 (738) (2,990) 66,890

Total Equity $000 99,036 (341) (4) (245) 300 98,746

10,321 216 10,537

9,372 3,501 12,873

73,773 346 (3,501) 70,618

98,131 689 216 99,036

Parent 30 June 2012 Balance at the Beginning of the Year Loss for the Year Transfer to Mataatua Wharenui Reserve Balance at the End of the Year

8,044 8,044

12,873 2,990 15,863

60,345 (814) (2,990) 56,541

81,262 (814) 80,448

30 June 2011 Balance at the Beginning of the Year Loss for the Year Transfer to Mataatua Wharenui Reserve Balance at the End of the Year

8,044 8,044

9,372 3,501 12,873

64,040 (194) (3,501) 60,345

81,456 (194) 81,262

Annual Report 2011-2012

42

11 Reserves

Group 2012 $000 10,533 15,863 26,396

Asset Revaluation Reserves Other Reserves

Parent 2011 $000 10,537 12,873 23,410

2012 $000 8,044 15,863 23,907

2011 $000 8,044 12,873 20,917

Asset Revaluation Reserves $000 2,082 575 7,459 (168) 585 10,533

Other Reserves $000 12 2,013 50 13,326 2 460 15,863

Total $000 2,082 575 12 9,472 (168) 50 13,326 2 1,045 26,396

2,082 579 7,459 (168) 585 10,537

12 2,013 50 10,336 2 460 12,873

2,082 579 12 9,472 (168) 50 10,336 2 1,045 23,410

7,459 585 8,044

12 2,013 50 13,326 2 460 15,863

12 9,472 50 13,326 2 1,045 23,907

7,459 585 8,044

12 2,013 50 10,336 2 460 12,873

12 9,472 50 10,336 2 1,045 20,917

Reserves are comprised of:

Group 30 June 2012 Aotearoa Fisheries Limited Unlisted Shares Bonds Portfolio Capital Contributions Farm Land and Buildings Fonterra Unlisted Shares Froude Street Mataatua Wharenui Other Financial Assets Te Manuka Tutahi (Telecom Site) 30 June 2011 Aotearoa Fisheries Limited Unlisted Shares Bonds Portfolio Capital Contributions Farm Land and Buildings Fonterra Unlisted Shares Froude Street Mataatua Wharenui Other Financial Assets Te Manuka Tutahi (Telecom Site) Parent 30 June 2012 Capital Contributions Farm Land and Buildings Froude Street Mataatua Wharenui Other Financial Assets Te Manuka Tutahi (Telecom Site) 30 June 2011 Capital Contributions Farm Land and Buildings Froude Street Mataatua Wharenui Other Financial Assets Te Manuka Tutahi (Telecom Site)

42 43

Annual Report 2011-2012

11 Reserves (continued) Froude Street Reserve This reserve represents the value of the land situated at Froude Street, Rotorua and subsequent revaluations to market value.

Te Manuka Tutahi (Telecom Site) Reserve This reserve represents assets at valuation vested in the Rūnanga in 1996 by the Crown and subsequent revaluations to market value.

Mataatua Wharenui Reserve This reserve includes the cost to the Crown of purchasing the Mataatua Wharenui ($2.75 million) and subsequent capital expenditure spent on the return and restoration of the Mataatua Wharenui and establishment of associated buildings.

Capital expenditure for the year is $3,273,000 (30 June 2011: $3,501,000).

Farm Assets Reserve This reserve represents the value of Ngāti Awa Farm assets transferred from the Crown, and subsequent revaluations to market value of the Farm land and buildings.

12 Cash and cash equivalents 2012 $000 1,450 3 7,553 9,006

Bank On-Call Deposits Short Term Deposits

13 Accounts Receivable

Accounts Receivable Less: Provision for doubtful debts GST Receivable

2,098 (1,575) 59 582

Group

2011 $000 2,856 1 19,919 22,776

2012 $000 159 159

2,673 (1,617) 424 1,480

270 48 318

Parent

2011 $000 908 3,481 4,389

529 415 944

The Rūnanga’s shareholding in Birnie Capital Property Partnership Limited is nil as at 30 June 2012 (2011: nil).

At 30 June 2009 the investment in the Birnie Capital Property Partnership was impairment tested and written down from $3.3 million to nil. In 2010 Birnie Capital Property Partnership went before the High Court seeking to invoke the right to “put back” the assets purchased by Birnie Capital Property Partnership from Lion Rock vendors (who include Mr Birnie) and seek to recover the $19 million paid for those assets. This legal action was driven by Ngāti Awa Asset Holdings and another investor. The legal action was initially successful however Mr Birnie appealed the decision.

Prior to further High Court action an offer of settlement was made by Mr Birnie and accepted by Ngāti Awa Asset Holdings and the other investor. The settlement is in the form of the sale of Ngāti Awa Asset Holdings’ and the other investor’s Birnie Capital Property Partnership shares to Mr Birnie.

The settlement provides payments of $3.55M for Ngāti Awa Asset Holdings and the other investor’s payable in 3 instalments over 4 years. The net receivable due to Ngāti Awa Asset Holdings is $1.575M. An Investment Gain and corresponding Receivable for $1.575M was recognised in 2011. Due to the uncertainty in respect of receiving the $1.575M cash from Mr Birnie a doubtful debts provision for the full $1.575M was also recognised.

A $2M consideration payment was due on 3 September 2011 and a $1m consideration payment was due on 3 March 2012.

Neither of these payments were received. A final payment for $.55M is due for the period ending 30 June 2015. Summary judgement proceedings were issued against Mr Birnie during this year to recover the agreed settlement amount but they are being defended by Mr Birnie. Other investors have also challenged the agreement which Ngāti Awa Asset Holdings and the other investor have reached with Mr Birnie. This has reduced the likelihood of a successful recovery.

Annual Report 2011-2012

44

14 Livestock on Hand 2012 $000 1,816 628 2,444

Cattle Sheep

Group

2011 $000 1,567 450 2,017

2012 $000 -

1,680 169 (626) 317 477 2,017

-

Parent

2011 $000 -

Movements are represented as follows: Balance at the Beginning of the Year Increase Due to Acquisitions Decrease Due to Sales Increase Due to Births/(Deaths) Change in Fair Value Balance at the End of the Year

2,017 127 (701) 645 356 2,444

-

At 30 June 2012, livestock comprised 569 cattle (2011: 627) and 4,013 sheep (2011: 3,273). During the year ended 30 June 2012, the Group sold 367 cattle (2011: 301) and 1,837 sheep (2011: 3,862).

At 30 June 2012, dairy livestock held comprised 675 dairy cattle (477 cows and 198 heifers) (2011: 644 (478 cows and166 heifers). During the year ended 30 June 2012, the Farm sold 65 dairy cattle (2011: 35).

15 Investments Group Note Investments in: - Bonds - Listed Shares - Unlisted Shares - Unit Trusts - Subsidiaries - Joint Ventures - Limited Partnership

16 17

Parent

2012 $000

2011 $000

2012 $000

2011 $000

9,275 108 5,762 17,114 130 616 33,005

10,579 114 3,770 7,881 123 22,467

27 48,488 48,515

29 48,488 48,517

16 Investments in Unlisted Shares Investment in unlisted shares includes Aotearoa Fisheries Limited shares (“the AFL shares”) that were received on 30 March 2006 as part of the settlement proceeds in accordance with the Maori Fisheries Act 2004. The Maori Fisheries Act 2004 places restrictions on the sale of the AFL shares where the shares can only be sold to either another Mandated Iwi Organisation or Te Ohu Kai Moana. The value of the AFL shares has been determined using a discounted cash flow model using market data and expected cash inflows. The AFL shares are not actively traded and valued using market accepted valuation techniques.

The Rūnanga also holds an investment in unlisted Fonterra shares which it holds in conjunction with the investment in Ngāti Awa Farms (Rangitaiki) Joint Venture’s dairy farm. The Fonterra shares are tradable and are valued using the year end market price.

The Group has invested in Direct Capital IV Limited partnership. Direct Capital IV invests in private equity opportunities with the intention of realising these investments and returning capital and capital gains to the partners over a 10 year time frame. The Partnership is not actively traded and valued using market accepted valuation techniques.

44 45

Annual Report 2011-2012

17 Investment in Joint Ventures

Group

Mataatua Fisheries Collective Receivable

2012 $000 130

2011 $000 123

123 7 130

115 8 123

Parent 2012 2011 $000 $000 -

Mataatua Fisheries Collective Receivable Balance of Joint Venture Receivable Balance at the Beginning of the Year Share of Net Surplus Balance at the End of the Year

-

-

The Mataatua Fisheries Collective Receivable relates to the monies held on behalf of the Rūnanga by the Mataatua Fisheries Collective. The receivable has been included as at the annual balance date of the Mataatua Fisheries Collective of 31 March 2012.

The Mataatua Fisheries Collective (“Collective”) is an unincorporated joint venture between iwi in the Mataatua rohe to lease fish quota to maximise returns. The Collective pays the Mataatua Quota ACE Holdings Limited a commission to undertake the leasing on its behalf.

The joint venture has a different balance date from the Rūnanga due to the joint venture having a standard balance date which is aligned with the income tax year. The commencement of the fishing season for the majority of fish stocks begins in April with new fish leasing arrangements.

18 Investment Properties Group

Investment Properties

2012 $000 9,128

2011 $000 9,005

Movements in Investment Properties are represented as follows: Balance at the Beginning of the Year Property Acquired Properties Sold Revaluation (Losses)/Gains Balance at the End of the Year

9,005 (57) 180 9,128

7,653 1,000 352 9,005

Parent 2012 2011 $000 $000 -

-

-

Residential properties on Wairaka and Toroa Streets were independently valued as at 30 June 2012 by Boyes James McKay Limited. Other investment properties were independently valued as at 30 June 2012 by Bay Valuation Services. The valuation used a mixture of market evidence of transactions for similar properties, direct comparison, capitalisation and discounted cash flow approaches. All valuations were performed by the same valuers from the 2011 year.

All valuers are independent registered valuers not related to the Rūnanga. All valuers hold recognised and relevant professional qualifications and have recent experience in the locations of the investment property they have valued.

Annual Report 2011-2012

46

Group

Investment Properties comprise: Land and Buildings 1-3 Toroa Street 5-7 Toroa Street 9-11 Toroa Street 13-17 Toroa Street 64 Wairaka Street

Land Te Whare Wananga o Awanuiarangi Apanui School Army Hall Ohope Beach School Ohope Beach Holiday Park Whakatāne High School (Part) Whakatāne Court House

Total Investment Properties

Parent

2012 $000

2011 $000

2012 $000

2011 $000

320 435 210 680 270 1,915

340 455 210 680 270 1,955

-

-

190 1,550 1,415 568 795 2,090 605 7,213

160 1,560 1,470 570 550 2,100 640 7,050

-

-

9,128

9,005

-

-

1,078 137 1,215

1,078 137 1,215

-

-

1,215 1,215

759 456 1,215

-

-

19 Farm Woodlots Pine Woodlot Eucalyptus Woodlot Movements are represented as follows: Balance at the Beginning of the year Revaluation Gains Balance at the End of the Year

The pine woodlot was independently valued on 30 June 2011 by PF Olson Limited. The eucalyptus woodlot was valued on 30 June 2011 by Chandler Fraser Keating Limited. The basis of the valuations were market value. The fair value of the woodlots is $1,215,000. There has been no material change in fair value during 2012.

20 Forestry Land Assets Group

Forestry Land Assets

2012 $000 18,173

2011 $000 16,771

16,771 1,402 18,173

16,725 46 16,771

Parent 2012 2011 $000 $000 2,257 2,083

Movements are represented as follows: Balance at the Beginning of the Year Revaluation Gains / (Losses) Balance at the End of the Year

2,083 174 2,257

2,111 (28) 2,083

The forestry land assets were independently valued on 30 June 2012 and 30 June 2011 by Reid & Reynolds Limited. The valuation used a mixture of market evidence of transactions for similar assets, direct comparison, capitalisation and discounted cash flow approaches. A discount rate of 7.3% (2011: 8.14%) was used to determine the fair value of forestry land assets.

The Rūnanga leases forestry land to various counterparties for terms of 35 years and accounts for these as operating leases. .

46 47

Annual Report 2011-2012

21 Property, Plant & Equipment Group 30 June 2012 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Transferred (to)/from other categories Impairment Losses Depreciation Balance at the End of the Year Cost or Valuation Impairment losses Accumulated Depreciation Net Book Value

Land $000

Buildings $000

Valuation/Cost

Valuation/Cost

Motor Vehicles $000 Cost 79 86 (20)

Office Equipment & Plant $000 Cost 379 156 1,195 (117) (92)

Froude Street Rotorua $000 Cost 50 -

13,184 12 1,805 -

3,016 25 4,417 (199)

15,001

7,259

145

1,521

50

15,001 15,001

7,945 (686) 7,259

417 (272) 145

2,280 (117) (642) 1,521

50 50

Mataatua Ngäti Awa Wharenui Complex Whakatane Whakatane $000 $000 Cost Cost 5,028 6,142 3,273 (5,028) (9,415) -

Group 30 June 2012 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Transferred (to)/from other categories Impairment Losses Depreciation

Cultural Assets $000 Cost 7,026 -

27,878 3,552 (117) (311)

Total $000

Balance at the End of the Year

-

-

7,026

31,002

Cost or Valuation Impairment losses Accumulated Depreciation Net Book Value

-

-

7,026 7,026

32,719 (117) (1,600) 31,002

Annual Report 2011-2012

48

21 Property, Plant & Equipment (continued) Group 30 June 2011 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Transferred from WIP Impairment Losses Depreciation

Land $000

Buildings $000

Valuation/Cost

Valuation/Cost

Motor Vehicles $000 Cost 95 (16)

Office Equipment & Plant $000 Cost 361 95 (2) 1,089 (889) (275)

Work in progress $000 Cost 530 559 (1,089) -

Froude Street Rotorua $000 Cost 50 -

13,184 -

3,135 (119)

Balance at the End of the Year 13,184

3,016

79

379

-

50

Cost or Valuation 13,184 Accumulated Impairment Losses Accumulated Depreciation Net Book Value 13,184

3,503 (487) 3,016

331 (252) 79

2,018 (889) (750) 379

-

50 50

Mataatua Wharenui Whakat채ne $000 cost

Ng채ti Awa Complex Whakat채ne $000 cost

5,028 -

2,647 3,501 (6)

25,030 4,155 (2) (889) (416)

Balance at the End of the Year

5,028

6,142

27,878

Cost or Valuation Accumulated Impairment Losses Accumulated Depreciation Net Book Value

5,028 5,028

6,174 (32) 6,142

30,288 (889) (1,521) 27,878

Group 30 June 2011 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Transferred from WIP Impairment Losses Depreciation

Total $000

In 2011, an assessment of the wireless network assets indicated an impairment of the asset was necessary due to lower than forecasted sales to the only customer of the network, GOnet unincorporated Joint Venture. The impairment test resulted in the value of the assets being written down to a nil carrying value, therefore an impairment charge of $888,597 was recognised. The asset is the infrastructure for a wireless communications network. The recoverable amount was based on the fair value less costs to sell as negotiations were underway with a party potentially interested in purchasing the network assets.

In 2012, Ng채ti Awa Networks Limited and GOnet Communications Limited (only remaining party in GOnet unincorporated Joint Venture) were sold. This included the transfer of all assets held by both entities, which had a nil carrying value at the point of sale.

48 49

Annual Report 2011-2012

21 Property, Plant & Equipment (continued) Parent 30 June 2012 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Transferred (to)/from other categories Impairment Losses Depreciation Balance at the End of the Year Cost Accumulated Impairment Losses Accumulated Depreciation Net Book Value

Land $000

Buildings $000

Valuation/Cost

Valuation/Cost

Motor Vehicles $000 Cost 12 9 (11)

Office Equipment & Plant $000 Cost 465 16 1,195 (117) (84)

Froude Street Rotorua $000 Cost 50 -

8,350 1,805 -

536 4,417 (95)

10,155

4,858

10

1,475

50

10,155 10,155

5,067 (209) 4,858

153 (143) 10

2,012 (117) (420) 1,475

50 50

Mataatua Ngäti Awa Wharenui Complex Whakatane Whakatane $000 $000 Cost Cost 5,028 6,142 3,273 (5,028) (9,415) -

Parent 30 June 2012 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Transferred (to)/from other categories Impairment Losses Depreciation

Cultural Assets $000 Cost 7,026 -

20,583 3,298 (117) (190)

Total $000

Balance at the End of the Year

-

-

7,026

23,574

Cost Accumulated Impairment Losses Accumulated Depreciation Net Book Value

-

-

7,026 7,026

24,463 (117) (772) 23,574

Annual Report 2011-2012

50

21 Property, Plant & Equipment (continued) Parent 30 June 2011 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Transferred to Subsidiary Depreciation

Land $000

Buildings $000

Valuation/Cost

Valuation/Cost

Motor Vehicles $000 Cost 23 (11)

Office Equipment & Plant $000 Cost 482 49 (2) (64)

Work in progress $000 Cost 530 559 (1,089) -

Froude Street Rotorua $000 Cost 50 -

8,350 -

552 (16)

Balance at the End of the Year 8,350

536

12

465

-

50

650 (114) 536

144 (132) 12

801 (336) 465

-

50 50

Cost Accumulated Depreciation Net Book Value

8,350 8,350

Mataatua Wharenui Whakatäne $000 cost

Ngäti Awa Complex Whakatäne $000 cost

5,028 -

2,647 3,501 (6)

17,662 4,109 (2) (1,089) (97)

Balance at the End of the Year

5,028

6,142

20,583

Cost or Valuation Accumulated Depreciation Net Book Value

5,028 5,028

6,174 (32) 6,142

21,197 (614) 20,583

Parent 30 June 2011 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Transferred from WIP Depreciation

Total $000

The farm land is restricted in use by the land having been vested to the Rūnanga under the Maori Land Court ensuring that the land is retained for nga uri o nga hapu o Ngāti Awa and is not able to be alienated. The net book value of the land is $8,350,000 (2011: $8,350,000).

Te Mänuka Tütahi land is restricted in use by the land having been vested to the Rūnanga under the Mäori Land Court ensuring that the land is retained for the purpose of a meeting place of cultural and historical importance for the communal use and benefit of nga uri o nga hapu o Ngāti Awa. The net book value of the land is $786,500 (2011: $786,500).

The following cultural land assets were received as part of the settlement claim, and previously formed parts of historic, scenic, and recreation reserves (with the exception of the former Matahina A4 Block). These land assets were received at no cost.

Kapüterangi (4.9321 hectares) Te Paripari Pa (1.0451 hectares) Otitapu Pa (6 hectares approximately) Te Toangopoto (10 hectares approximately)

Te Ihukatia (1.1 hectares approximately) Whakapaukörero (30 hectares approximately) Former Matahina A4 Block (4,045 square metres)

50 51

Annual Report 2011-2012

22 Intangible Assets Whakatäne Airport The Rūnanga has a right to receive at no cost the Whakatāne airport land if the use of the land ceases to be that of an airport. There is nil value attached to the right to purchase.

Radio Frequency The radio frequency licence used by Te Reo Irirangi o Te Manuka Tutahi is issued to the Rūnanga. This asset has nil value.

Fish Quota Fish quota is an intangible asset that provides annual catch entitlements for fish stock species. The asset has an indefinite life and is not amortised, it is tested annualy for impairment. The recoverable amount of the fish quota has been determined at the cash generating unit associated with the asset being the entity, Ngāti Awa Fisheries Limited. Cash flows have been projected into perpetuity using a long term growth rate of inflation of 1.5% (2011: 2.00%) and discounted using the entity’s weighted average cost of capital of 8.1% (2011: 6.04%).

Management does not expect that a reasonable change in key assumptions would reduce the recoverable amount of the fish quota below its carrying amount.

Carbon Credits

Group 2012 $000 3,977 (2,583) 1,394

Opening Balance Acquisitions by way of government grant Impairment loss Closing Balance

2011 $000 3,987 (10) 3,977

Parent 2012 $000 439 (285) 154

2011 $000 440 (1) 439

The New Zealand Emission Trading Scheme (ETS) became law on 26 September 2008 with the passing of the Climate Change Response (Emissions Trading) Amendment Act 2008 (the Act). The Act was amended during 2010 with the passing of the Climate Change Response (Moderated Emissions Trading) Amendment Bill on 25 November 2010. Under the provisions of the Act the Group is a deemed participant in the ETS as it is an owner of pre 1990 forest land.

The Act provides for an allocation of 60 New Zealand carbon units (NZUs) per hectare to be transferred to the Group.

Based on this allocation it is estimated that the Group will be entitled to an allocation of 565,717 NZUs. The Act provides for the credits to be transferred in two tranches. 23 NZUs per hectare will be transferred before 31 December 2012, with the remaining 37 NZUs per hectare to be transferred after 2012.

Due to the uncertainty of the transfer of the second tranche of NZUs the Group has only recognised the fair value of the first tranche of the carbon credit allocation, which is 206,839 NZUs. The Group recognised the allocation of the first tranche of NZUs as government grant income in profit or loss in 2010 as the allocation was considered to represent compensation of the lower value of land already incurred. The carbon credits are assessed as having an indefinite life as they have no expiry date and the Group is able to either hold the NZUs within the carbon register or alternatively trade the NZUs in domestic or international carbon markets. As the NZUs are an indefinite life intangible asset they are not amortised but are tested for impairment on an annual basis or when indications of impairment exist.

The units were valued at a market price of $6.80 per unit on 30 June 2012, resulting in an impairment charge to the Rūnanga of $2,582,724 (2011: $9,588).

Under the ETS the Rūnanga will have an obligation to account for any emission released as a consequence of deforestation of pre 1990 forest land by surrendering NZUs equal to the extent of that emission. The Rūnanga has no liability for deforestation as at 30 June 2012 (2011: nil).

The Rotoehu West forest is held by the Rūnanga on behalf of the Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu (note 25). The forest entitles the Hapu to an allocation of 79,260 NZUs. The value of carbon credits held on the Hapu’s behalf as at 30 June 2012 is $153,937 (2011: $439,000).

Annual Report 2011-2012

52

22 Intangible Assets (continued) Computer Software Parent and Group 30 June 2012 Balance at the Beginning of the Year Amortisation Balance at the End of the Year

Cost $000 Cost 84 (18) 66

Total $000 Cost 84 (18) 66

Cost or Valuation Accumulated Amortisation Net Book Value

106 (40) 66

106 (40) 66

30 June 2011 Balance at the Beginning of the Year Amortisation Balance at the End of the Year

97 (13) 84

97 (13) 84

Cost or Valuation Accumulated Amortisation Net Book Value

106 (22) 84

106 (22) 84

23 Accounts Payable and Accruals Group Note Accounts Payable Accrued Expenses Taxation Payable Restructuring Provision

9

2012 $000 197 557 44 116 914

2011 $000 394 676 69 1,139

Parent 2012 $000 86 377 116 579

2011 $000 248 418 666

24 Income Received in Advance Group Note Forestry Rentals Grants Property Rentals

2012 $000 4,849 161 308 5,318

2011 $000 5,032 126 316 5,474

Parent 2012 $000 126 126

2011 $000 90 90

Forest rentals include $4.2 million in relation to the Bonisch Road Settlement received during 2010. This is being amortised over 35 years (2011: 35 years), beginning 1 October 2005, which is the period of access rights granted under the settlement.

25 Ngäti Hikakino and Ngāi Te Rangihouhiri II Hapü The Rotoehu West forest is held by the Rūnanga on behalf of the Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu.

The forest, carbon credits and associated rental income the Rūnanga has collected on the hapu’s behalf will be transferred to the hapu once a governance entity has been established with mandate from the hapu and title passed from the Crown to the Rūnanga. It is proposed the hapu enter into a management agreement with Ngāti Awa Forests Limited for the management of the forests.

In October 2011, the cash component (including term deposits) of the assets held, totalling $1.53M, was transferred to the new Hapu entity. As at 30 June 2012, remaining assets held on behalf of Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu totalled $2.55M.

52 53

Annual Report 2011-2012

26 Term Loans

Group 2012 $000 900 687 500 (45) 2,042

Westpac mortgage Loan from Housing NZ Corporation ASB mortgage Less: Current Portion of Term Loan

Parent 2011 $000 900 683 (45) 1,538

2012 $000 -

2011 $000 -

Westpac This loan was raised in June 2010 to purchase a dairy herd and farm plant for NgÄ ti Awa Farms (Rangitaiki) Joint Venture. The loan is secured by a mortgage over the farm land on Western Drain Road,Whakatane. The loan is for 5 years with interest charged on a monthly basis at rates ranging from 5.1% to 6.7% which are fixed for periods of three months to one year.

Loan from Housing NZ Corporation This loan was raised to purchase and renovate residential properties at Wairaka, WhakatÄ ne. The loan is for 25 years and interest free for the first 10 years, expiring November 2014. Principal only is payable from when the loan is drawn down. The loan is secured by a mortgage on the respective Wairaka residential properties (2011: same).

ASB mortgage This loan was raised to invest in Crayfish quota as part of a ten Iwi Collective. The loan is for 5 years with interest charged on a monthly basis at a variable rate of 5.39% p.a. The loan matures on 15 March 2017.

27 Reconciliation of Surplus to Cash Flow from Operating Activities Group

(Loss)/Profit for the Year Adjust for Non-Cash Items Depreciation Bad Debts Expense Other income Revaluation losses Rental income Change in fair value of livestock Net Investment (Gains)/Losses Mataatua Joint Ventures Share of Net Profit

Parent 2012 2011 $000 $000 (814) (194)

2012 $000 (341)

2011 $000 689

329 335 (472) 1,007 (184) (356) (231) (7) 421

429 1,616 6 (142) (231) (1,472) (8) 198

208 36 120 364

111 2 113

Adjust for items classified as Investing or Financing Activities: Realisation of equity portfolio Dividends Received (414) (414) Add/Less Movements in Working Capital Decrease/(Increase) in Accounts Receivable 841 (Increase)/Decrease in Livestock on Hand (69) (Decrease)/Increase in Accounts Payable 35 (Decrease)/Increase in Income Received in Advance (225) 582

(363) (384) (747)

(1,010) (1,010)

(994) (994)

(364) (106) 198 75 (197)

645 (87) 36 594

(652) 118 40 (494)

Net Cash From/(Used in) Operating Activities

(57)

(866)

(1,569)

Annual Report 2011-2012

248

54

28 Investments in Subsidiaries and Associates Name

Class of Share

Ownership Interest Held 30 June 30 June 2012 2011

Balance Date

Principal Activity

Commercial Assets Admin Fisheries Investment Drystock Farming Non-Trading

Subsidiaries Ngāti Awa Group Holdings Limited

Ordinary

100%

100%

30 June

Ngāti Awa Asset Holdings Limited

Ordinary

100%

100%

30 June

Ngāti Awa Farms Limited

Ordinary

100%

100%

30 June

Ngāti Awa Farms (Rangitaiki) Limited

Ordinary

100%

100%

30 June

Ngāti Awa Fisheries Limited

Ordinary

100%

100%

30 June

Ngāti Awa Fish Quota Holdings Limited

Ordinary

100%

100%

30 June

Ngāti Awa Forests Limited

Ordinary

100%

100%

30 June

Ngāti Awa Investments Limited

Ordinary

100%

100%

30 June

Ngāti Awa Properties Limited

Ordinary

100%

100%

30 June

Ngāti Awa Research & Archives Trust

-

100%

100%

30 June

The Ngāti Awa Community Development Trust

-

100%

100%

30 June

Manu Hou GP Limited

Ordinary

100%

100%

30 June

Ngāti Awa Networks Limited

Ordinary

0%

100%

30 June

Social Services General Partner of Manu Hou LP Non-Trading

Ngāti Awa Iwi Savings Limited

Ordinary

100%

100%

30 June

Non-Trading

GoNet Communications Limited

-

0%

100%

30 June

Manu Hou Limited Partnership

-

70%

70%

30 June

Internet Service Provider Capital Investments

-

16%

16%

31 March

Ordinary

16%

16%

31 March

-

51%

51%

30 June

Fish Quota Leasing Non-Trading Forest Land Leasing Investment Property Leasing Research

Joint Ventures Mataatua Fisheries Collective Mataatua Quota ACE Holdings Limited Ngāti Awa Farms (Rangitaiki) Joint Venture

54 55

Fish Quota Leasing Fish Quota Leasing Dairy Farming

Annual Report 2011-2012

29 Related Party Transactions Balances with Subsidiaries are held as follows: Parent Statement of Financial Position Current Assets Owing by Subsidiaries - Ngāti Awa Group Holdings Limited - Ngāti Awa Asset Holdings Limited - Ngāti Awa Development Trust - Ngāti Awa Research & Archives Trust Non-Current Assets Loans Owing by Subsidiaries

- Ngāti Awa Asset Holdings Limited

2012 $000

2011 $000

32 354 181 188 755

463 354 55 188 1,060

7,898 8,653

7,898 8,958

On 1 October 2007 a loan of $7.5 million was advanced to Ngāti Awa Asset Holdings Limited. This loan is repayable on 30 September 2017 and interest is received at the prescribed Inland Revenue Department rate for low-interest loans of 5.90% as at 30 June 2012 (2011: 5.90%).

Receipts and Payments with Subsidiaries During the year, the Rünanga had the following transactions with Subsidiaries: Parent

Receipts Administration Fees Income

Farm Lease Income Interest

-

Ngāti Awa Farms Limited Ngāti Awa Farms (Rangitaiki) Joint Venture Ngāti Awa Group Holdings Limited Ngāti Awa Properties Limited Ngāti Awa Group Holdings Limited Ngāti Awa Asset Holdings Limited

Payments Radio Station Funding

- Ngāti Awa Properties Limited

Annual Report 2011-2012

56

2012 $000

2011 $000

18 18 12 18 66 492 624

18 18 12 18 66 511 643

30 30

30 30

29 Related Party Transactions (continued) Payments to Consultants who are Board Members Payments to Board Members under the Rünanga Charter Under the Rūnanga Charter clause 18.1(c), there is a provision for professional fees that can be paid to Board Members.

During the years ended 30 June 2012 and 30 June 2011 the following professional fees were paid to Board Members: Group Board Member Mr C Bluett Ms M Dodd Mr C Elliott Ms E Ratahi-Pryor Mr J Mason

Mr P Ngaropo

Ms R O’Brien

Mr H Ranapia

2012 $000 37 5

Nature of fees Rūnanga employee Member of the Executive Committee Member of Ngakauroa Board and of the Audit Committee Director of Ngāti Awa Group Holdings Limited Rūnanga consultancy and Director of Ngāti Awa Group Holdings Limited Member of the Executive Committee, and Ngāti Awa Research and Archives contract work Trustee of Development Ngāti Awa, and member of Audit Committee On-going advice for the Mataatua Wharenui

2011 $000 22 5

Parent 2012 $000 37 5

2011 $000 22 5

4

4

4

4

23

23

-

-

59

63

35

40

20

77

-

-

4

5

4

5

-

83

-

83

152

282

85

159

Board Members were paid $127,800 in meeting fees for the year ended 30 June 2012 (2011: $124,000), which includes the Chairman’s and Deputy Chairman’s honorarium payments.

Indemnity insurance of $12,000 (2011: $11,135) was paid on behalf of the Board Members.

Group 2012 $000 45

Payments to the Chairman of the Board Fees Paid to TK Merito -

2011 $000 45

Parent 2012 $000 -

2011 $000 -

Payments to Key Management Personnel Key management personnel and their direct reports costs are $425,180 (2011: $406,000) for the Group.

56 57

Annual Report 2011-2012

30 Operating Lease Commitments Non-cancellable operating lease rentals are payable as follows: Group

Commitments Due - within 1 year - in 1 year to 2 years - in 2 years to 5 years - greater than 5 years

Parent

2012 $000

2011 $000

2012 $000

2011 $000

83 75 181 73 412

92 92 225 153 562

-

-

2011 $000 143 143 428 3,464 4,178

2012 $000 66 66 197 328 657

Non-cancellable operating lease rentals are receivable as follows: Group 2012 $000 143 143 428 3,321 4,035

Commitments Due - within 1 year - in 1 year to 2 years - in 2 years to 5 years - greater than 5 years

Parent 2011 $000 66 66 197 328 657

31 Capital Commitments The Rūnanga entered into a heads of agreement with CO2 New Zealand Limited Partnership on 20 October 2011 as part of a carbon sequestration project. As part of this agreement and along with the subsequent Carbon Sequestration Management Services agreement entered into on 12 July 2012, the Group has committed capital expenditure of $3,812,935 through to 2017.

Manu Hou Limited Partnership has committed capital of $5 million to Direct Capital IV. As at 30 June 2012 $2,801,426 has been called (2011: $809,889). The Group has no other capital commitments as at 30 June 2012 (2011: Nil).

32 Contingent Assets and Liabilities Contingent Assets The Group has a contingent asset of fish quota for the year ended 30 June 2012. During the 2006 year, the Rūnanga received the fisheries settlement from Te Ohu Kai Moana of 25% inshore and 75% of deepwater fish quota allocated to the Rūnanga as the Mandated Iwi Organisation. The remaining 75% inshore and 25% deepwater fish quota is being held by Te Ohu Kai Moana on the iwi’s behalf and will be received at a later date, once coastline negotiations have been concluded.

Until the iwi receives the final fisheries settlement, the Annual Catch Entitlement (“ACE”) rights that arise to the Mandated Iwi Organisation under the Maori Fisheries Act 2004 have been assigned to Ngäti Awa Asset Holdings Limited.

Contingent Liabilities During the current year, the Rūnanga was involved in a rent dispute with the Ministry of Education in relation to Whakatane High School and Apanui school for rent dating back to April 2010. Rent is determined on a percentage of the property’s valuation provided by the Group’s valuers - Bay Valuation Services. The dispute has arisen as a result of differences in the valuation provided by Bay Valuation Services and the valuation provided by valuers engaged by the Ministry of Education.

As of 30 June 2012, the dispute has yet to be resolved and is likely to go into mediation, which if found in favour of the Ministry of Education, would result in $230,400 being payable to the Ministry of Education for overcharged rental fees.

The Rūnanga has recorded a provision based on its estimate of the likely outcome.

The Rūnanga has no other contingent liabilities as at 30 June 2012 (30 June 2011: Nil).

Annual Report 2011-2012

58

33 Financial Assets and Liabilities The table below analyses the financial assets and liabilities by class and category, consistent with the Rünanga and Group’s accounting policies.

Group 30 June 2012

Assets per Statement of Financial Position Other Financial Assets Accounts Receivable Other Financial Assets at Fair Value through Profit or Loss Cash and Cash Equivalents

Loans and Receivables $000

Assets at Fair Value through Profit or Loss $000

Available for Sale $000

Carrying Value Total $000

523

-

12,734 -

12,734 523

12,734 523

9,006 9,529

20,141 20,141

12,734

20,141 9,006 42,404

20,141 9,006 42,404

Other Liabilities at Financial Fair Value Liabilities at Carrying through Amortised Value Profit or Loss Cost Total $000 $000 $000 Liabilities per Statement of Financial Position Term Loans Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu Accounts Payable and Other Liabilities

30 June 2011

Assets per Statement of Financial Position Other Financial Assets Accounts Receivable and Other Receivables Other Financial Assets at Fair Value through Profit or Loss Other Assets Cash and Cash Equivalents

Fair Value Total $000

-

Loans and Receivables $000

Assets at Fair Value through Profit or Loss $000

Fair Value Total $000

2,042 2,552 870 5,464

2,042 2,552 870 5,464

2,042 2,552 870 5,464

Available for Sale $000

Carrying Value Total $000

Fair Value Total $000

1,056

-

13,395 -

13,395 1,056

13,395 1,056

64 22,776 23,896

8,950 8,950

13,395

8,950 64 22,776 46,241

8,950 64 22,776 46,241

Other Liabilities at Financial Fair Value Liabilities at Carrying through Armortised Value Profit or Loss Cost Total $000 $000 $000 Liabilities per Statement of Financial Position Term Loans Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu Accounts Payable and Other Liabilities

-

1,583 4,043 1,070 6,696

1,583 4,043 1,070 6,696

Fair Value Total $000 1,583 4,043 1,070 6,696

There are no material financial assets that are past due or impaired.

58 59

Annual Report 2011-2012

33 Financial Assets and Liabilities (continued) The table below analyses the financial assets and liabilities by class and category, consistent with the Rünanga and Group’s accounting policies.

Parent 30 June 2012 Loans and Receivables $000 Assets per Statement of Financial Position Accounts Receivable Owing by Subsidiaries Other Financial Assets at Fair Value through Profit or Loss Other Assets Cash and Cash Equivalents

Assets at Fair Value through Profit or Loss $000

Available for Sale $000

Carrying Value Total $000

Fair Value Total $000

270 8,653

-

-

270 8,653

270 8,653

159 9,082

27 27

-

27 159 9,109

27 159 9,109

Other Liabilities at Financial Fair Value Liabilities at Carrying through Amortised Value Profit or Loss Cost Total $000 $000 $000 Liabilities per Statement of Financial Position Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu Accounts Payable and Other Liabilities

30 June 2011

Assets per Statement of Financial Position Accounts Receivable and Other Receivables Other Financial Assets at Fair Value through Profit or Loss Other Assets Cash and Cash Equivalents

-

Loans and Receivables $000

Assets at Fair Value through Profit or Loss $000

2,552 579 3,131

2,552 579 3,131

2,552 579 3,131

Available for Sale $000

Carrying Value Total $000

Fair Value Total $000

9,487

-

-

9,487

9,487

64 4,389 13,940

29 29

-

29 64 4,389 13,969

29 64 4,389 13,969

Other Liabilities at Financial Fair Value Liabilities at Carrying through Amortised Value Profit or Loss Cost Total $000 $000 $000 Liabilities per Statement of Financial Position Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu Accounts Payable and Other Liabilities

-

There are no material financial assets that are past due or impaired.

Annual Report 2011-2012

Fair Value Total $000

60

4,043 666 4,709

4,043 666 4,709

Fair Value Total $000 4,043 666 4,709

34 Liquidity Analysis for Financial Liabilities The table below summarises the cash flows payable by the RĹŤnanga and Group for financial liabilities by remaining contract maturity at the statement of financial position date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Group 30 June 2012 Term Loans Accounts Payable and Other Liabilities

30 June 2011 Term Loans Accounts Payable and Other Liabilities

Parent 30 June 2012 Accounts Payable and Other Liabilities

30 June 2011 Accounts Payable and Other Liabilities

Less than 1 year $000 117 3,422 3,539

97 5,113 5,210

Less than 1 year $000 3,131 3,131

4,709 4,709

60 61

Between 1 and 2 years $000 117 117

97 97 Between 1 and 2 years $000 -

-

Between 2 and 5 years $000 1,778 1,778

Over 5 years $000 850 850

Total $000 2,862 3,422 6,284

1,215 1,215

938 938

2,347 5,113 7,460

Between 2 and 5 years $000 -

Over 5 years $000 -

Total $000 3,131 3,131

-

-

4,709 4,709

Annual Report 2011-2012

35 Sensitivity Analysis The table below summarises the impact on profit before tax and net assets attributable to equity should interest rates, exchange rates, or other price risks move by the percentages incorporated in the table and assuming all other variables remain constant.

Group

30 June 2012 Carrying Amount Interest Rate Risk -1% Profit Equity 1% Profit Equity Other Price Risk -10% Profit Equity 10% Profit Equity

Financial Assets Cash and Cash Equivalents $000 9,006

Accounts Receivable and Other Receivables $000 2,098

Financial Liabilities Accounts Payable and Investments Accruals $000 $000 32,875 3,422

(90) (90) 90 90

-

186 (180)

-

14 14 (14) (14)

-

-

(1,711) (1,711) 1,711 1,711

-

-

Financial Assets

30 June 2011 Carrying Amount Interest Rate Risk -1% Profit Equity 1% Profit Equity Other Price Risk -10% Profit Equity 10% Profit Equity

Annual Report 2011-2012

Term Loans $000 2,087

Cash and Cash Equivalents $000 22,776

Accounts Receivable and Other Receivables $000 1,056

Financial Liabilities Accounts Payable and Investments Accruals $000 $000 22,344 5,113

Term Loans $000 1,583

(228) (228) 228 228

-

264 (255)

-

-

-

-

(788) (788) 788 788

-

-

62

35 Sensitivity Analysis (continued) Parent

30 June 2012 Carrying Amount Interest Rate Risk -1% Profit Equity 1% Profit Equity Other Price Risk -10% Profit Equity 10% Profit Equity

Financial Assets Cash and Cash Equivalents $000 159

Accounts Receivable and Other Receivables $000 270

Investments $000 27

Financial Liabilities

Owing by Subsidiaries $000 8,653

Interest Rate Risk -1% Profit Equity 1% Profit Equity Exchange Rate Risk -10% Profit Equity 10% Profit Equity Other Price Risk -10% Profit Equity 10% Profit Equity

Term Loans $000 -

(2) (2) 2 2

-

-

(87) (87) 87 87

-

-

-

-

-

-

-

-

Financial Assets

30 June 2011 Carrying Amount

Accounts Payable and Accruals $000 3,131

Cash and Cash Equivalents $000 4,389

Accounts Receivable and Other Receivables $000 529

Investments $000 29

Financial Liabilities

Owing by Subsidiaries $000 8,958

Accounts Payable and Accruals $000 4,709

Term Loans $000 -

(44) (44) 44 44

-

-

(90) (90) 90 90

-

-

-

-

-

-

-

-

-

-

-

-

-

-

62 63

Annual Report 2011-2012

36 Fair value estimation The parent and group use the following hierarchy for determining and disclosing the fair value of instruments by valuation technique: - Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; - Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie, as prices) or indirectly (ie, derived from prices); and - Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement.

The following table presents financial assets and liabilities measured at fair value in the Statement of Financial Position as at 30 June 2012: Level 1 $000 Group and Parent 2012 Assets per Statement of Financial Position - Bond Portfolio - Listed shares - Unit Trusts - Cleary Wealth Management - Unit Trusts - JB Were Wealth Management - Unit Trusts - Brook Asset Management - Unlisted shares - Direct Capital - AFL shares - Limited Partnership - ICP Koura Collective Total assets Group and Parent 2011 Assets per Statement of Financial Position Bond Portfolio - Listed shares - Unit Trusts - Cleary Wealth Management - Unlisted shares - Direct Capital - AFL shares Total assets

Level 2 $000

Level 3 $000

Total $000

57 57

9,275 51 5,863 9,058 43 761 25,051

2,150 2,919 2,082 616 7,767

9,275 108 8,013 9,058 43 761 2,919 2,082 616 32,875

63 1,147

10,579 51 5,437 733 15,716

2,444 955 2,082 5,481

10,579 114 7,881 733 955 2,082 22,344

Direct Capital There is no active market for shares in Direct Capital IV therefore the fair value of the investment has been calculated using valuation techniques. The fair value has been calculated using an EBITDA multiple approach. The manager of Direct Capital IV Limited Partnership applies Australian Venture Capital & Private Equity Association (AVCAL) valuation guidelines in preparing quarterly valuations for all portfolio companies.

Unit Trusts - Cleary Wealth Management Cleary Wealth Management invest into certain managed funds that are not traded on an active market and therefore the unit price is calculated based on financial information provided by the investment manager. The fair value of the investment has been determined based on the number of units held multiplied by the calculated unit price.

Unit Trusts - JB Were Wealth Management JB Were Wealth Management invests directly in Australasian equities. Unit price is determined based on publicly available share price data.

AFL Shares The fair value of the AFL income shares is based on cash flows calculated on an annual basis from 2012 to 2021 and a terminal value based on cash flows in 2021 with an assumed growth factor of 2.5% (2011: 2.5%) and a post tax discount rate of 10.3% (2011: 10.3%). A 40% liquidity and non-controlling interest discount has been taken into account in determining the fair value.

Limited Partnership - ICP Koura Collective ICP Koura Collective is an investment vehicle which was formed in March 2012 to invest into crayfish quota. As at 30 June 2012, the investment is carried at fair value, which was the amount the Group invested into the Collective at its inception.

Annual Report 2011-2012

64

TE RÜNANGA O NGÄTI AWA DIRECTORY OF OFFICERS For the year ended 30 June 2012 Te Rūnanga o Ngāti Awa Representatives B Aranga A Kohunui M Aranga J Mason M Araroa T K Merito C Bluett P Ngaropo N Brown R O’Brien M Dodd P Raimona-Salmon C Elliott E Ratahi-Pryor M Glen M Sisley J Harawira H Stipich S Haua T Wharewera M Hepi R Williams

Ngāti Awa Iwi Savings Limited Directors J Gardiner G Pryor EP Ratahi-Pryor

Ngāti Awa Group Holdings Limited Directors HT Gardiner G Pryor J Mason TW Vercoe EP Ratahi-Pryor

Ngāti Awa Research & Archives Trust Trustees SM Mead J Mason TR Chapman-de Vos P Ngaropo O Phillis

Ngāti Awa Asset Holdings Limited Directors HT Gardiner G Pryor J Mason TW Vercoe EP Ratahi-Pryor

Ngäti Awa Farms (Rangitaiki) Joint Venture Partners Ngäti Awa Farms Limited Putauaki Trust Ihukatia Trust Moerangi Kereua Ratahi Lands Trust Omataroa Rangitaiki 2 Trust Rangitaiki 31 P3F Trust (Kiwinui Trust)

Ngāti Awa Farms Limited Directors J Davies J Mason D Grant L Stowell

Management Board Members TW Vercoe J Davies D Grant L Stowell C O’Brien

Ngāti Awa Forests Limited Directors HT Gardiner TW Vercoe J Mason Ngāti Awa Properties Limited Directors HT Gardiner TW Vercoe J Mason Ngāti Awa Fisheries Limited Directors HT Gardiner TW Vercoe J Mason

Ngāti Awa Investments Limited Directors HT Gardiner TW Vercoe J Mason The Ngāti Awa Community Development Trust Trustees SM Mead J Lewis TR Chapman-de Vos A Green F Semmens

C Elliott B Hughes R Wana W Studer

Manu Hou Limited Partnership Limited Partners Ngāti Awa Asset Holdings Limited Omataroa Rangitaiki No.2 Trust Putauaki Trust Manu Hou GP Limited Directors C Elliott T Hunia TW Vercoe

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TE WHARE WÄNANGA O AWANUIÄRANGI Tēnei te mihi atu kia koutou i runga i ngā āhuatanga o te wā.

It is my pleasure as Chief Executive Officer/Vice-Chancellor of Te Whare Wānanga o Awanuiārangi: indigenous-university to present this report outlining our commitment to both Iwi and Crown, and the achievements we have made through our distinct kaupapa Māori philosophy.

Te Whare Wānanga o Awanuiārangi: indigenous-university is characterised by teaching and research that maintains, advances and disseminates knowledge, develops intellectual independence, and assists the application of knowledge regarding āhuatanga Māori according to tikanga Māori.

We are a unique institution shaped simultaneously by section 162(4)(b)(iv) of the Education Act 1989, by a treaty partnership between the Crown and Ngāti Awa, and by a mutually agreed investment plan with TEC. We regularly meet with other Wānanga – Te Wānanga o Aotearoa and Te Wānanga o Raukawa – to facilitate a cohesive and collective direction for the Wānanga sector, which provides significant interventions that aim to achieve educational outcomes for Māori.

2011 was another successful year for Awanuiārangi financially. We have continued to generate strong surpluses in excess of the TEC return-on-revenue target of 3%. This success has come on the back of achieving targets, attracting alternative sources of income and a close control over costs.

However, the Government has sought to develop more control around education spending through, firstly, a moratorium on EFTS growth (with allocations frozen at 2009 levels), and secondly, a revised policy regime for student loans. This changed context is already impacting on Awanuiārangi and the effects of ‘standing still’ will begin to be felt within the next 12 months. This situation will need to be addressed within our next Investment Plan cycle. Keeping the institution above the line may well be at the cost of diminished Māori and iwi development.

Our world-class campus development in Whakatāne is being funded from Treaty settlement funds received in 2010. In addition, we have made substantial investment from our own internally generated reserves in other capital infrastructure assets, including new property and Information Technology. That said, we are prudently managing our capital expenditure, ensuring that we maintain and build our cash reserves for future capital developments.

Stage 1 – Phase 1 of the new campus facility is complete and Stage 1 – Phase 2 will be officially opened in December 2012. Work on Stage 2 and Stage 3 will continue into 2013. This development will fulfil the Waitangi Tribunal Settlement signed between Awanuiārangi and the Crown in 2003 “to cover the real cost of bringing buildings, plant and equipment up to a standard comparable to other Tertiary Education Institutions”.

In 2012, nearly 2000 students will graduate - including the first of our doctoral students. In comparison to last year, Awanuiārangi has achieved a 256% increase in bachelor degree graduates and a 75% increase in Certificate graduates. Awanuiārangi has 13 doctoral staff and another 15 doctoral adjunct teaching staff available to teach degrees from doctoral to undergraduate level. Growing the number of PhD-credentialed staff is a key strategy to ensure high-quality delivery of our degrees.

The Wānanga continues to build research capacity through its research institutes (Te Whare Mātauranga Māori – The National Institute for Māori Education, Tokorau – The Institute for Indigenous Innovation, Te Pourewa Arotahi – The Institute for Post-Treaty Settlement Futures, and Te Whare Taiao – The Institute for Indigenous Science). In addition, Awanuiārangi has organised and contributed to numerous national and international conferences, supporting critical forums for the transfer of indigenous knowledge.

The Wānanga has also worked to strengthen collaborative initiatives that include the Bay of Plenty Tertiary Partnership with the Bay of Plenty Polytechnic and the University of Waikato; The Manukau Institute of Technology; Te Rūnanga ā Iwi o Ngāpuhi; The Computer Clubhouse Trust for the Network of Aotearoa Clubhouses (NOAC); and Konnex Networks (UK-based technology company).

In summary, this last year has been one of steady progress. Awanuiārangi has achieved success given the constraints placed upon it, and our achievements against the goals we set ourselves include: •

Sustainability: financial success and ongoing financial stability.

•

Education opportunities for all: programmes that align with the needs of students and stakeholders; a 95% base of Māori students; an increase in the number of rangatahi (aged under 25) participating in and completing higher levels of education.

•

Raising educational standards: Literacy and Numeracy skills embedded into all Level 1-3 programmes, Certificate in Te Pouhono (Level 4), and Te Tohu Paetahi Ako: Bachelor of Education (Level 7 papers); trained more than 200 kaiako (teachers) in Literacy and Numeracy skills delivery; programmes that provide opportunities to create and disseminate knowledge.

•

Quality learning environment: clear progression pathway for students (from Adult Community Education to PhD degrees); awarded (by NZQA) the highest achievement for educational performance; external monitor’s and moderators’ advice that our graduate programmes no longer require mandatory external monitoring.

•

Staff development and research: a research culture that supports staff to undertake research projects, produce research output, and contribute toward student and Māori needs; professional development and mentoring programmes for staff.

•

Strategic alliances: alliances established and maintained with other universities, Crown Research Institutes, Polytechnics, Private Training Enterprises and learning institutions to improve outcomes for students.

Distinguished Professor Graham H. Smith PhD (Auckland), D.Litt. (Hon. Causa), M.A. Hons, Dip.Tchg Chief Executive Officer/Vice-Chancellor

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TE REO IRIRANGI O TE MÄNUKA TÜTAHI TRUST Broadcasting on the 17th of September 2012 two radio stations, ‘Sun FM and Tumeke FM,’ were launched to the airwaves of Whakatāne and surrounding districts.

The existing Sun FM radio station has a new format which focuses on normalising te reo rangatira by targeting the 25-54 demographic who have limited te reo ability. Sun FM will feature more local information, on air engagement and use of social media Sun FM now broadcasts out on 106.5FM with sports and all new web design at www.sunfmonline.com.

Tümeke FM is tailored to a demographic of 35+ aimed at a more advanced level of te reo. Culture, tikanga and community kaupapa are some of the features together with music from the 60s, 70s and 80s. Tümeke FM now broadcasts out on 96.9 FM and online at www.tumekefm.com Essentially the changes are about delivering consistent content coupled with the promotion of te reo Māori to the relevant audiences of the community enabling us to promote te reo more effectively.

Mānuka Productions – The visual medium continues to grow with more requests for audio visual services predominately for archival purposes. Several projects this year have included: The Mataatua Whare Restoration and Opening, Ngāti Awa Reo Rautaki, Te Whare Wānanga o Awanuiärangi Graduation, Adventure Solutionz, Ngā Maihi Whakapapa Wānanga, Ngā Kaumātua o Ngāti Awa Project, Celebration Award for Tä Hirini Mead for his award from Te Waka Toi and the Ngäti Awa Festival to name just a few.

Te Mānuka Tūtahi Productions not only works with te iwi o Ngāti Awa but it has opened its services to other iwi and kaupapa as well including; Breakfast Eaters Challenge with local kura, Ohope Primary and Te Kura Māori ā rohe o Waiohau, birthdays and kapahaka (Rangitāiki Festival and Delamare Cup).

Financial performance – The Radio Station recorded a deficit for the year ended 30 June 2012 of $23,404 (surplus $20,095 in 2011) and net assets of $402,877 ($439,973 in 2011). Income of $27,000 for video production work completed in the 2012 financial year, which would have ensured a surplus, will now be taken up in the 2013 financial year. While a cash surplus of $14,113 was recorded, depreciation of $43,110, mostly on broadcasting and computer equipment, and a loss on Pü Kaea of $6,090 turned the surplus to a loss. Broadcasting is an expensive business and the care, maintenance and replacement of equipment remains a significant and on-going cost. Income was also down marginally and staffing costs increased in an effort to retain quality staff in a competitive environment.

Community engagement - All staff have been involved in a number of community events throughout the year both locally and nationally. These range from sports to kapa haka, educational, kohanga reo through to tertiary education. We strive to build better relationships with our communities not only via the airwaves but also kanohi kitea.

We continue to support staff in further education and several are now due to graduate in the fields of Humanities, Multimedia and Mätauranga Māori. We congratulate them for their success. The trustees also wish to record again their thanks to all those who have assisted in making the past year a success. In particular we acknowledge the continuing support of Te Rūnanga o Ngāti Awa. Further gains and improvements over the coming few months will ensure a more certain future in the days yet to come.

Ka nui te mihi ki a koutou, ngä kärangaranga hapū o te iwi nei. Mä te Atua koutou, tätau hoki e manaaki, e tiaki i ngä wa katoa.

Jarrod Dodd Managing Trustee

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NGÄTI AWA SOCIAL AND HEALTH SERVICES This year has been marked by a changing landscape as a result of the recession and the reinstatement of a National-led government.

The impact has seen the Government tighten its purse strings in its endeavour to save money and reduce its deficit. Furthermore there has been an increased focus on achieving outcomes and ensuring accountability for funding received. Demonstrating the difference that we are making with the whänau we work with is central to this.

The introduction of new Accountability measures has led Te Tohu O Te Ora O Ngäti Awa to review its structure. As a result, the Assessment and Service Coordination Team was established to manage all referrals into the organisation and improve reporting. In addition to this a Programmes Team was established to be responsible for all programme development and implementation. These changes have enabled the organisation to better manage referrals and programme delivery. We are now able to obtain better information to plan for the future, prepare proposals and report on the outcomes whänau are achieving.

Significant investment has been made in improving the Information Technology systems of the organisation. Exess client management system has been implemented and is managed through the Assessment and Service Coordination Team. Driving the new client management system is the need for the organisation to be able to obtain the reports we require to better manage service delivery and support new service developments. .

This year a total of 86 people were employed by the organisation with 90% identifying as Mäori. Of the 86, 50% were of Ngäti Awa descent. Significant investment has been made in training and development of staff. Improving capability is one of the strategic goals of the organisation which once again was a priority for management and the Board.

Matangireia was completed and officially opened in October 2011 . The focus for the organisation on whänau sustainability led to the establishment of Te Pataka. Programme delivery is based at Te Pataka and centred on teaching whänau to support their whänau by using the resources they could access themselves. Märakai, preserving, pickling, bottling, jam making, fishing and catching tuna were programmes provided during the year.

Some of the outcomes achieved by whänau as a result of intervention they received through accessing services delivered by the organisation included: • • • • • • • • •

Improvement in budget and financial management Improved parenting capability as a result of participation in Incredible Years Parenting Programme Whänau found alternative housing moving from overcrowded homes and supported housing Reduction in hospital admissions for respiratory conditions Decrease in the number of DNA (did not attend) at clinics Improvement in self management of health conditions Increase in the number of clients accessing residential treatment to address alcohol and/or drug issues Whänau using the skills they learnt from participating in programmes at home Increased number of programmes being intergenerational with participants from teenagers to koroua and kuia actively involved

Te Tohu O Te Ora O Ngäti Awa has faced a number of challenges this year which is a reflection of the current environment we are working in. Ensuring the requirements of funders are achieved with the competing priorities of the organisation and the needs of whänau we deliver to is always a balancing act. Government focus on key performance indicators has meant that the outcomes and achievements whänau have achieved are not always reported as the spotlight is on volumes and ensuring performance indicators are met. Our focus has not changed and we will continue to ensure services are available to address the needs of whänau, hapü and Iwi, that we have relationships with others that will support this and that we position ourselves to take up new opportunities as they arise in this forever changing environment.

Enid Aniko Pearl Ratahi-Pryor QSO Chief Executive

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NGÄTI AWA TERTIARY TRAINING ORGANISATION The New Zealand tertiary education landscape has changed significantly over the past twelve months. This has been largely a result of government’s response to the slowing national economy and the rebuilding of Christchurch. To ensure that Ngāti Awa Tertiary Training Organisation (NATTO) is responsive to shifts in government policy and continues to provide relevant foundation courses that build capability and capacity in our region, as well as develop graduates who can contribute to the national economy, we have developed training provisions that are focused on achieving three key priorities.

1.

Increase the number of young people moving successfully from school into tertiary education;

2.

Increase the number of Māori students enjoying success at higher levels;

3.

Increase the skill level, knowledge and expertise of a local workforce.

Meeting the needs of learners 44% of all tertiary students in the Bay of Plenty region are studying foundation level 1 – 3 training programmes similar to that which is offered by NATTO. As a result of this strong demand, NATTO began 2012 with the opening of a new and exciting main campus. Located in the Whakatäne CBD area, on the 1st Floor at 103 The Strand, this modern training facility is equipped to offer additional benefits that complement the existing Poroporo training site.

The benefits of the new main campus include: • Easier access for prospective students to visit NATTO and meet staff; • There were 50% more enrolments in 2012 than the previous year; • Students feel part of the business community and are fully engaged in the learning; • A downtown presence engenders a stronger connection with local businesses; • The campus provides more work experience opportunities for learners; • Business owners recognise that NATTO students have a good work ethic, are well behaved and employable; • It provides extra room to accommodate NATTO’s new courses, (i.e. Hospitality, Mäori Performing Arts and the Training for Work programme).

A focus on improving performance We are pleased to report improved performance in 2012 particularly by youth who are experiencing social and emotional challenges.

NATTO has progressively improved across many of its key performance areas compared to 2011. Youth achievement levels and consequent retention rates continue to be a challenge however, NATTO will be implementing new strategies to turn this around in 2013. This will involve a kaupapa Māori-based approach to provide better learner information, collaboration in Māori leadership and improved quality assurance and pathways.

NATTO is looking forward to a very bright future Over the next three years, NATTO will be taking a new strategic approach and we have been consulting with key stakeholders in developing a strategic plan to direct us in the future. We intend to focus on broadening our range of programmes and affecting positive change in the region.

If you would like to contribute towards the strategic plan please contact Training Manager – Mack Ramanui by phoning (07) 308-7022 or emailing admin@natto.org.nz

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Te Rünanga o Ngäti Awa Ngäti Awa House, 4-10 Louvain Street, Whakatäne 3120 PO Box 76, Whakatäne 3158 Freephone: 0800 464 284 Tel: 07 307 0760 Fax: 07 307 0762 Email: runanga@ngatiawa.iwi.nz Web: www.ngatiawa.iwi.nz view Ko Ngäti Awa te Toki DVD at www.ngatiawa.com join facebook.com/kongatiawatetoki view Mataatua Wharenui at www.mataatua.com