2014 Te Runanga o Ngāti Awa Annual Report

Annual Report

2014

Te Rūnanga

o Ngāti Awa Hapū HAPU

JUNE 2014

NOV 2014

REPRESENTATIVE

Te Pahipoto

2,220

2,218

Tuwhakairiora O’Brien

Te Kahupake

699

698

Mihipeka Sicily

Nga Maihi

1,860

1,862

Regina O’Brien

Ngai Tamaoki

829

830

Keld Hunia

Ngai Tamawera

1,134

1,135

Alf Morrison

Ngāti Hamua

481

480

Miro Araroa

Ngai Tuariki

324

324

Meri Hepi

Ngāti Warahoe

568

574

Aubrey Kohunui

Ngai Taiwhakaea II

1,390

1,397

Manukorihi Tarau

Ngāti Hikakino

564

563

Stanley Ratahi

Ngai Te Rangihouhiri II

620

618

Manurere Glen

Te Tawera

877

879

Pouroto Ngaropo

Ngāti Pukeko

2,571

2,579

Joe Mason

Ngāti Rangataua

506

506

Te Kei Merito

Ngai Tamapare

413

411

Paul Quinn

Ngāti Hokopu - Te Hokowhitu a Tu Ki Te Rahui

645

642

Maanu Paul

Ngāti Hokopu - Te Whare o Toroa

1,396

1,397

Dayle Hunia

Ngāti Wharepaia

536

536

Materoa Dodd

Ngāti Maumoana

122

122

Puti Koopu

Te Patuwai

1,265

1,267

Marcia Wahapango

Ngāti Awa ki Tamaki Makaurau

338

339

Hakahaka Hona

Ngāti Awa ki Poneke

317

320

Serenah Nicholson

Elected to be known as Ngati Awa

73

73

TOTALS

19,748

19,770

CONTENTS

ANNUAL o Ngāti Awa GENERAL MEETING Te Rūnanga 2 2 4

Karakia

He Korero Whakataki i te mana Nga Tapuwae o Awanuiārangi

7 Chairman’s Report 10 Manahautū Report 16 Te Ara Poutama Outcomes 2013-2014 24 Scholarship & Grant Recipients 29 Development Ngāti Awa

Saturday 6 DECEMBER 2014 Te Manuka Tutahi 29

- Te Reo Irirangi o Te Mānuka Tūtahi

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- Te Tohu o Te Ora o Ngāti Awa

32 Chairman’s Report - Ngāti Awa Group Holdings Ltd 36 Auditors Report 39 Te Rūnanga o Ngāti Awa Financial Statements 40 Directory of Officers

HE KARAKIA WHAKAU I TE MAURI TAPU O IO TAKETAKE He Karakia ki a Io

Takina atu ra te kawa tapu kia lo Matuanui Ko te kawa ki Te Kore Ko te kawa ki Te Po Ko te kawa ki Te Ao Ko te kawa ki a Ranginui Ko te kawa ki a Papatuanuku Ko te kawa ki nga Atua Ko te kawa ki a Hineahuone Ko te kawa ki a Hinetitama Ka puta whaki ko te lra tangata ki te whei ao ki te ao marama E lo Matuakore, whakamaturuturutia mai te ahikomau, te ahi tawhito me nga kete matauranga o lo, o Tawhaki hei oranga mo te wairua, hinengaro me te tinana. Kia tau te mauri ki runga i nga hapū o Ngāti Awa whanui tonu i raro i te mana o Te Runanga o Ngāti Awa, ui e taiki e.

HE KORERO WHAKATAKI I TE MANA RANGATIRA O NGATI AWA ONA MARAE ME ONA HAPŪ Ngāti Awa ki Rangitaiki, Ngāti Awa ki Whakatāne, Ngāti Awa ki Te Awa o Te Atua, Ngāti Awa ki Motiti, Ngāti Awa ki Tamaki Makaurau, Ngāti Awa ki Poneke

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NGA TAPUWAE O

AWANUIĀRANGI E noho ana au i toku taumata e i E noho ana au i toku taumata o Putauaki, he ngarara tana kai, ina Putauaki, i maunu atu ai i te po i hohoro i te awatea. Tu tonu iho kihai i haere. Ko nga hapū o Ngāti Awa e i Ka titiro atu au Ka titiro atu au ki Puawairua, Ko Te Rerehu, Ko Pirauwhenua, Ko Ngāti Hikakino e i Ko Te Pahitaua o Irapeke te putahitanga o nga hapū o Ngāti Awa e Hoki ko muri au Hoki ko muri au ki Te Rangihouhiri, Ko Uruhina kei Otitapu te pumautanga o Te Rangihouhiri e i Hangai te titiro Hangai te titiro ki Taiwhakaea, Ko Toanatini, Ko Whiro ki te po, Taiwhakaea ki te ao Te Tokotoru i Otamauru e i Rere tika tonu ra Rere tika tonu ra ki Te Hokowhitu, Ko Te Rau Aroha o Ngāti Hokopu e i Whakawhiti atu au Whakawhiti atu au ki Wairaka TamateakiteHuatahi, Ko Ngāti Hokopu ko Ngāti Wharepaia e i

Huri tonu atu ra Huri tonu atu ra ki Te Pahou, Ko Rangataua, Ko Hinekete, Ko Ngāti Rangataua e i Tapapa ana au Tapapa ana au ki Te Pa Poroporo, Ko Pūkeko, Ko Rangimamao, Ko Ngāti Pūkeko poke kai e E huri atu ra ki Awatapu ko Awanui, Ko Pahemata e tu mai nei hei whakaruruhau mo nga uri e i. Ronakinaki ra Ronakinaki ra ki Pupuaruhe, Ko Toroa, Ko Kakepikitua, Ko Te Patuwai ki Pupuaruhe, Ko Te Patuwai ki Motiti e. Tau ana ahau ki Motiti Tamateakitehuatahi, Ko Hinewai, Ko Te Hingaotera, Ko Puna, Ko Ngāti Takahanga, Ko Ngāti Makerewai, Ko Ngāti Pau, Ko Ngāti Ahoaho, Ko Ngāti Kauaewera, Ko Ngāti Ruatiki, Ko Ngāti Maumoana e i Whakawhiti atu au ki te poho o Tamaki Makaurau Tamaki herehere ko Mataatua, Ko Awanuiarangi, Ko Tuteiere, Ko Ngāti Awa ki Tamaki e i.

Rere whakauta ra Rere whakauta ra ki Te Rewatu, Ko Ueimua, Ko Tapa, Ko Ngai Tamapare e i

Heke iho ana au ki Awakairangi ki Te Upoko o Te Ika, e noho mai ra ko Ngāti Awa ki Poneke i raro i te manaakitanga o Te Atiawa me Ngāti Toa Rangatira e i

Haere tonu atu ra Haere tonu atu ra ki Rangimarie, Ko Rarawhati, Ko Ngāti Rarawhati e i

Rere arorangi au Rere arorangi au ki Te Toki Tareke, Ko Warahoe te awa, Warahoe te tangata,

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Whiua reretia ra Whiua reretia ra ki Tuariki, te kawai rangatira o Tamatekapua, Ko Te Wairereahiahi, Ko Ngāti Tuariki e i Nekeneke atu ra Nekeneke atu ra ki Te Mapou, Ko Rongotangiawa, Ko Hana Kiriwera, Ko nga tamariki o te ra, o Te Kooti Arikirangi, Ko Ngāti Hamua e i Ka titiro atu au Ka titiro atu au ki Ruaihona, Ko Mahanga i te rangi, Ko Ngai Tamaoki, Ko Ngāti Tarawhai e i Ko Rakeihopukia te takotoranga, Ko ona matua tipuna e moe mai ra e i Huri tonu atu ra Huri tonu atu ra ki Tuteao, Ko Te Whakaurumai o te rangi, Ko Ngā Maihi o Ruamano e i Ruamano ki te rangi kawe ake au ki uta ra haere ia moananui, haere ia moanaroa takiritia ki te whei ao ki te ao marama e i Tae atu ana au Tae atu ana au ki Uiraroa, Ko Tauwhitu, Ko Hinerauhuia te puhi mareikura o Ngāti Wahiao, Ko Tuhourangi matao kai, Ko Ngāti Nuku, Ko Ngāti Ahi, Ko Ngai Tamawera e i

Rere tika tonu ra Rere tika tonu ra ki Kokohinau, Ko Waipunaarangi, Ko O Ruataupare, Ko Te Pahipoto, Ko Te Kahupaake, Ko nga uri o Iratumoana ko nga mate kei runga o Kawerau me tangi atu ki Te Rae o Koohi, Ko Ngāti Ikapuku, Ko Ngāti Kuratapirirangi, Ko Te Pahiroa, Ko Te Pahipoto e i Whakawhiti atu au Whakawhiti atu au ki Iramoko, Ko Te Paetata, Ko Te Ramaapakura, Ko Te Umuhika, Ko Te Waikamihi rere tika tonu ra ki Te Awa o Te Atua ki Whakapaukorero, Ko Te Tawera e i Ka hoki nei au Ka hoki nei au ki Putauaki, Ko Ngāti Awa te iwi, Ko Te Mānuka Tutahi te mauri tapu o te waka o Mataatua. Ko Mataatua te whare i hikoi haere i te ao hurihuri i Te Waipounamu e tu mai nei hei whakaruruhau mo nga uri o nga hapū o Ngāti Awa whanui, Ko Te Hono Ki Te Ao, Ko Te Aroha o Ngāti Awa, Ko Te Hauoterangi te pou rangatira, te pou korero, te pou haki hei tohu whakamaumaharatanga. Ko Te Rūnanga o Ngāti Awa te pouherenga te kotahitanga o nga matua tipuna e ko koia e ara e.

TRoN A

Warahoe te hapu e i Ko Te Marangaranga, Ko Hineiorohia e i

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Te Rūnanga o Ngāti Awa

CHAIRMANS REPORT Papaki tu ana nga tai ki Te Reinga Ka po, Ka ao ka awatea Tihei Mauiora! Tena koutou nga uri o nga hapū o Ngāti Awa. Tera o tatou mate e heke tonu nei. Haere koutou moe mai i roto te Ariki. Welcome to this year’s Annual General Meeting of Te Rūnanga o Ngāti Awa. As I reflect upon the past year, it has been a year of significant challenge and change. In November 2013, all representative positions of Te Rūnanga o Ngāti Awa were up for re-election. As a result of that process, 11 of the 22 representatives were replaced. I wish to thank those representatives, who are no longer on the Board, for their time, energy and commitment that they graciously gave to the Rūnanga and Ngāti Awa during their tenure. In February 2014, I commenced the role as Chairman of the Board, replacing Mr Te Kei Merito who had served five years as Deputy and five in his latter role of Chairman. Te Kei guided the Board with great skill and determination through its post settlement phase. Te Kei has made a significant contribution leading our vision, Ngāti Awa Te Toki and the Te Ara Poutama framework along with the re-establishment of our tupuna whare Mataatua, at Te Manuka Tutahi Marae. We acknowledge his strong and astute leadership during his many years with Te Rūnanga o Ngāti Awa. I am very pleased that Te Kei remains on the Board as the Ngāti Rangataua representative. Pouroto Ngaropo continued as the Deputy Chairman and we have worked closely together throughout this year. Both the change in representation of hapu and the Chairmanship of Te Rūnanga o Ngāti Awa itself signals a significant shift in the way we do business. The Board undertook a review of its three committees; the Executive, Appointments and Remuneration, and Audit Committees. The following changes were implemented: 1. 2. 3.

The Executive Committee was disbanded The Appointments and Remuneration Committee remained with a new Terms of Reference The Audit Committee was disbanded and replaced with the Audit, Finance and Risk Committee and a new Terms of Reference

TRoN A

There are also significant changes in the Directorships of Ngāti Awa Group Holdings. Sir Harawira Gardiner, the inaugural Chair of the company since its establishment in 2005, has after nine years, retired from the company. Sir Harawira set up the policies and systems governing the company and established the farming platform for Ngāti Awa’s dairying business and the Ngāti Awa Heritage Estate Carbon Forest. I thank Sir Harawira for his enormous contribution to Ngāti Awa and wish him well in his future endeavours. We also note the retirement of Mr Waaka Vercoe, resignation of Mr Brian Tunui, and my retirement from the Board of NAGHL, which will take effect at the upcoming AGM of Ngāti Awa Group Holdings. Mr Paul Quinn, who replaced Mr Graham Pryor, is the current Chair of NAGHL. These are all significant changes and together the Board must not underestimate the challenges that we face as we move forward. It will be a strong and united Board that will ensure the success of these transitions. There are risks associated with changes of this magnitude and we

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must take the time to carefully consider the issues and the management of them. While often challenging for the representatives, I have faith that the Board will guide our waka in the right direction. Therefore our strategic direction encapsulated in Ngāti Awa Te Toki and strategies contained within Te Ara Poutama will remain strongly embedded in the way that we practice and in the outcomes that we achieve in our operational areas. Our operations, led by our Chief Executive, Enid Ratahi-Pryor, have met and exceeded expectations in a number of areas. Our finances continue to be well managed and we have achieved a small surplus for the second year in a row. The Rūnanga is living within its means so let’s keep it that way. In addition, I am also pleased with the outcomes we have managed to achieve with a greatly reduced staff and budget. The Chief Executive will report more on that further in the report. I acknowledge the work of the Board representatives, our Whakaruruhau Sir Hirini Moko Mead, our Chief Executive and staff, kahui kaumatua, and hapū for their support. I would like to make mention of our trusts, Te Reo Irirangi o Te Mānuka Tūtahi, who won the award for best Māori Radio Station in New Zealand earlier this year. Te Tohu o Te Ora o Ngāti Awa, who continue to lead health and social service delivery for Ngāti Awa, ran a very successful hapu hakinakina this year with 19 hapū participating. While Te Whare Wananga o Awanuiārangi has been embroiled in a little controversy recently, overall they are fulfilling and carrying out the important role of education for Ngāti Awa and doing very well. I also note that all of these organisations came together with sponsorship and services to support our inaugural Ngāti Awa Te Toki Festival, and we are grateful for their support. In conclusion, I wish you all a very Merry Christmas and happy New Year. No reira tena koutou, tena koutou, tena tatou katoa.

Dr Hohepa Mason (Hon. Causa) Chairman

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Left to Right: Aubrey Kohunui, Paul Quinn, Manu Glen, Marcia Wahapango, Keld Hunia, Mere Hepi, Puti Koopu, Tuwhakairiora O’Brien, Gina O’Brien, Mihipeka Sisily, Hohepa Mason (Chairman), Miro Araroa, Materoa Dodd, Pouroto Ngaropo (Deputy Chair), Alf Morrison, Serenah Nicholson, Stanley Ratahi, Manukorihi Tarau. Dayle Hunia, Maanu Paul

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Te Rūnanga o Ngāti Awa & Ngāti Awa Group Holdings

MANAHAUTŪ REPORT

• TRoNA completed the financial year under budget • Profit for year of $6m versus a profit of $1.083m in the previous year • Total group assets increased from $117m to $125m • $1.5m cash funding provided to Te Rūnanga o Ngāti Awa from Ngāti Awa Group Holdings Limited

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I am very privileged as Manahautu of Te Rūnanga o Ngāti Awa and Ngāti Awa Group Holdings to report to ngā uri o ngā hapū o Ngāti Awa on the activities of their Rūnanga and commercial operations this financial year.

Getting the Infrastructure Right

Our contract with Deloitte ends in 2015. At that time, it is envisaged that a new finance team and Chief Financial Officer will have been hired to take responsibility for the new financial year beginning July 2015. Deloitte consultant, Mana Newton has been acting as our Chief Financial Officer supported by Deloitte Consultant, Josh Hitchcock. Both have been based at Te Rūnanga o Ngāti Awa carrying out all of the roles and functions of the finance department. Lynsey Mariu has been employed by Te Rūnanga o Ngāti Awa

What Have We Achieved Financially? The outsourcing of the finance function has worked well with no downside effect as a result of this change. Having completed a second financial year under budget I am very pleased with the changes that have been made. Increasing both income and assets of Ngāti Awa remains the key to improved fiscal and social outcomes overall for the Iwi. Ngāti Awa Group Holdings have improved both their net profit and asset base again this year and as depicted in the graph below the asset base has significantly increased since 2012. The combined Ngāti Awa Group Holdings Ltd and Ngāti Awa Asset Holdings Ltd ended the year 30 June 2014 with a net surplus after tax (including non-controlling interests) of $6.4 million. This compares very favourably to the previous year’s net surplus after tax of $2.2 million. Combined assets of the commercial operations (including noncontrolling interests) have increased $6 million to $98 million previously $92 million in 2013. The details will be covered more comprehensively in the NAGHL section of this report.

Total Assets $125m

TRoN A

A new finance software package has been implemented with better reporting features and cloud back-up systems. The system was installed part way through this financial year, but already a range of positive benefits have been achieved throughout the financial process. The finance team including the Chief Financial Officer and senior finance associates left the organisation in the second third quarter of this year. The accounting and finance firm Deloitte was contracted to implement the new finance system, establish new policies and processes as a result of that change. Deloitte also provided financial accounting services during this period.

in the finance area. It is important to note that the contract for having Deloitte on site has cost no more than what it cost to run the previous finance team.

Millions

This is the second consecutive year Te Rūnanga o Ngāti Awa has completed the financial year within budget. Having re-structured the organisation in the previous year, while a difficult undertaking, was nevertheless required to ensure ongoing fiscal accountability and sustainability into this year’s operations. Many changes have been made to the organisation’s systems and processes to achieve improved efficiencies. However, ongoing vigilance and commitment by both management and the Board is still required to avoid the budget blowouts and deficits experienced in previous years.

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Toi Ora

What Have We Achieved Socially? Through Kai

In July 2014 we expanded the Pātaka Kai and in conjunction with Ngāti Awa Farms Ltd added beef to our already existing contribution of fish. Processed meat packages including mince, sausages, steak and boil up are pre-packaged from the Pātaka. Current allocation is as follows: Meat per tangi, per marae = 30kg Fish per tangi, per marae = 20kg The allocation of fish and meat is always subject to availability but every effort is made to ensure that sufficient stock of meat and fish is maintained. Between 1st July 2013 to 30th June 2014 Te Rūnanga o Ngāti Awa distributed the distributed 1060kgs of fish to 53 tangi, and 1082 kgs meat to 38 tangi on Ngāti Awa marae.

Through Health, Social and Early Childhood Services This year 19 hapū participated in the 2013 Ngāti Awa Hākinakina with over 1500 individuals registering their presence on the day. This was the 10th year that the Ngāti Awa Hākinakina was organised and run by Development Ngāti Awa partner Te Tohu o Te Ora o Ngāti Awa. The event focused upon intergenerational participation from tamariki through to kaumātua and was won this year by Ngai Te Rangihouhiri. A fun day for all the whānau, the hākinakina has become a key event on the Ngāti Awa calendar requiring considerable planning, infrastructural capacity and capability to ensure a sustainable hapū event into the future. Established by Te Runanga o Ngāti Awa in 1989, the organisation has grown from a small matua whangai service to become one of the largest Iwi providers in the Bay of Plenty providing comprehensive health, social, early childhood and parenting services to over 2,000 individuals on behalf of Ngāti Awa. The organisation employs approximately 80 staff of which more than half whakapapa to Ngāti Awa.

Pataka Fish and Meat Distribution

2013-2014

Hokowhitu

Fish Meat

Through Education

Uiraroa

We continue to work closely with Te Whare Wananga o Awanuiārangi another important entity established by Te Rūnanga o Ngāti Awa aimed at improving maori tertiary education outcomes. We employed a full time Manager this year to implement the Ngāti Awa Education and Te Reo Rautaki o Ngāti Awa strategies. An important aspect of this role is to create working relationships alongside our kohanga reo, kura and high schools to look at ways that we can increase participation levels and educational outcomes in all three areas.

Puawairua Rewatu Toroa Ruaihona Mapou Tuteao Wairaka

Te Rūnanga o Ngāti Awa provided 118 Education Grants towards tertiary level study. While we would like to contribute to all education needs we have had to limit the financial support to tertiary second year only, until the financial position of the Rūnanga improves. A comprehensive list of grant recipients and their hapū can be found elsewhere in this report.

Rangataua Pukeko Taiwhakaea

Kokohinau

0 50 100 150 200 250 Kgs

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Tūrangawaewae

What Have We Achieved Culturally? In Te Reo

Te Rūnanga o Ngāti Awa established Te Reo Irirangi o Te Mānuka Tūtahi in 1990. Since then our Iwi radio station has gone from strength to strength broadcasting 8 hours per day, 7 days per week 5 days of which are broadcast live. Working closely with the Rūnanga, the goals and objectives of Te Reo Irirangi closely align with Ngāti Awa Te Toki, Te Ara Poutama and Te Rautaki Reo o Ngāti Awa. Those goals include raising the general status and awareness of Te Reo Māori, and the regeneration and revitalisation of Te Reo o Ngāti Awa. Oral histories from koroua and kuia have been recorded with both film and radio mediums. Te Reo Irirangi has established a very comprehensive archive. Making the archive accessible is part of their work programme in the new year. With an emphasis on Ngāti Awa reo and Ngāti Awa tikanga the management of Te Rūnanga o Ngāti Awa and Te Reo Irirangi are well on the way to ensuring that the delivery of programmes are reflective of Ngāti Awa kaupapa, tikanga, mātauranga and kōrero tuku iho. Te Reo Irirangi o Te Mānuka Tūtahi is supported by and operates from the premises of Te Rūnanga o Ngāti Awa. Congratulations to Jarrod Dodd and his team for winning the NZ Radio Awards for Iwi Station of the Year in 2014. This was an award presented in recognition of Te Reo Irirangi o Te Mānuka Tūtahi contribution to radio New Zealand for the 2013 year.

In Culture

kapahaka event which managed to seat 2000 people at its busiest point. Ngai Taiwhakaea was the overall winner of the whakataetae and Ngai Tamaoki won the whakangahau section. The tamariki section was won by Ngāti Hokopu. Overall a very successful and proud day for Ngāti Awa.

Through the Revitalisation of Traditional Cultural Practices

In 2012 Te Rūnanga o Ngāti Awa initiated a project to revitalise the traditional practice and knowledge of Ngāti Awa’s cultural harvest of Kuia (Grey-Faced Petrel) on Moutohora. The kaupapa for the project was to ensure the survival of traditional Ngāti Awa Kuia harvesting techniques by placing Ngāti Awa descendants with kaumātua who harvested Kuia on Moutohora in their youth, thereby transferring the knowledge. Following the revitalisation of the Kuia harvest in 2012, the focus of the 2013 harvest was to establish a core group of harvesters to become specialists in those practices and techniques – Ko Ngā Kaitiaki o Ngā Kuia o Moutohora. Our outcomes were: • Kaitiakitanga – Ngāti Awa’s obligation to protect our culture, environment, resources and people in accordance with our cultural practices. • Active exercise of Ngāti Awatanga and mana whenua within the rohe of Ngāti Awa. • Increase of knowledge about Ngāti Awa estate and resources within Ngāti Awa rohe. • Enhanced mauri of natural resources within the Ngāti Awa rohe

TRoN A

This year, Te Rūnanga o Ngāti Awa worked with hapū through their representatives on the Ahi Kaa Committee to plan for Ngāti Awa Te Toki – A celebration of Ngāti Awa reo and tikanga through kapahaka. Hapū were practicing for whakataetae and whakangahau with eventually 5 teams entering whakataetae and 15 teams in whakangahau. A lot of hard work was carried out by all - from the whanau at the back feeding the masses, at kapahaka practices, at the marae; to the hapū representatives attending meetings and judging practices throughout the year. With outstanding support and participation from the hapū, the Labour Weekend Ngāti Awa Te Toki Festival was a success from day one. Te Mānuka Tūtahi Marae was the perfect location for the inaugural

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Through the Preservation and Conservation of our Culture & Heritage

Between November and January 2014 several items of taonga tūturu were uncovered during works on Reid’s Canal to the east of the Rangitaiki River including an ancient carved hoe (paddle), a large stone toki (adze head) and a carved tao (spear). Reid’s Canal was constructed in 1970 and the discoveries were within a section of the canal, formerly a channel of the Orini, a significant traditional Ngāti Awa waterway. The Orini was traditionally the principal connecting waterway between the Whakatāne estuary and the Rangitaiki and on to Tarawera and Te Awa ā Te Atua, at Matata. These items along with others have been re-immersed back into a lagoon until a wet water laboratory can be established to preserve the artefacts within the Ngāti Awa rohe.

Te Mānuka Tūtahi Marae - Mataatua Wharenui

Balancing cultural and commercial imperatives has been an ongoing priority for staff. Not yet able to cover the total costs of marae operations, on a more positive note the income continues to increase year after year. As our team build their tourism capability this will not only add to future income but also contribute to telling our cultural and spiritual stories to the many tamariki who visit the marae with their schools. Te Mānuka Tūtahi Marae has successfully achieved both a cultural and commercial balance, which came to the fore through their hosting of the Ngāti Awa Te Toki Festival and Kapahaka event in October 2014 and the winning of a Horizon Business Excellence Award for Best Small Business in November 2014. Hinauri Mead, the Manager of Te Mānuka Tūtahi, is congratulated for building that capacity and capability, resulting in these two excellent outcomes.

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Mataatua Wharenui Revenue & Cash Deficit Year

2012

2013

2014

Revenue

$64,924

$92,773

$110,540

Cash Deficit

-$302,551

-$265,338

-$187,042

As Kaitiaki What Have We Achieved Environmentally? Creating Environmental Sustainability

We operate an Environmental Unit responsible for environmental resource management throughout the Ngāti Awa rohe. We list all of the team’s outcomes in the Outcome Section of this report and highlight the following two. The Awarapatuna Wetland Project is completed and involved the construction of a series of open water ponds and wet seeps to take the flows from the Awarapatuna Stream and a smaller tributary catchment. Two smaller upper ponds were constructed to receive water from the watercourses, which then flow into the primary pond area. The combined flows from the primary pond move through a series of open water and wet seep areas before discharging through 3 offset culvert pipes back into the original drain system. We have planted 4,500 native plants appropriate for the wetland and coast including Harakeke, Tī Rākau, Mānuka, Kānuka, Oioi and Toetoe. The primary purpose of the Awarapatuna Wetland Project was to enhance the mauri of the Awarapatuna Stream by constructing a wetland system and planting with native species. The project will result in reduced sediment loads into Ohiwa Harbour and will enhance biodiversity values within the catchment by providing native wetland habitat and open water space for bird species. Both the Mauri enhancement programme and the Awarapatuna Wetland Project have been jointly funded by Te Rūnanga o Ngāti Awa and the Bay of Plenty Regional Council.

Coping with Environmental Disasters.

The effects of the devastation and aftermath of the grounding of the MV Rena on the 5 October 2011 on Otaiti, or Astrolabe Reef off Motiti Island, are still being managed. Te Rūnanga o Ngāti Awa has been working alongside Te Patuwai Tribal, both on and off the Island. The Rūnanga facilitated a hui between Daina Shipping, Beca Consultants and Te Patuwai hapū and attended numerous meetings with the hapū. It has been unanimously agreed to by Te Patuwai that the wreck be removed in its entirety and this is the kaupapa being driven by Te Rūnanga o Ngāti Awa. The Rūnanga lodged a submission against leaving the wreck on the reef to the Regional Council, which was referred to the Environment Court in October 2014. A copy of the submission by the Rūnanga can be found on our website www.ngatiawa.iwi.com.

How has the Rūnanga supported Hapū Leadership The Protection of Hapū Values, Culture and Spirituality – Opihi-whanaunga-kore Urupā

Appeal the Commissioners decision which is currently in mediation (Nov 2014). I would like to thank the Rūnanga Representatives and the Directors of NAGHL for their support throughout the year. I particularly wish to thank the Chairs of the Rūnanga both Te Kei Merito and Joe Mason for their guidance and words of wisdom throughout the year. I wish to also acknowledge the outgoing Chair of NAGHL, Sir Harawira Gardiner, who has been instrumental in bringing the company through its establishment, transition and current position. He is an outstanding leader and it has been an incredible journey working alongside Sir Wira. I would also like to thank Sir Hirini Moko Mead who has been supporting me in my role as Manahautū with his encouraging words and insightful suggestions, of which, there have been many. My staff and I have received cultural support from Pouroto Ngaropo who has provided extensive cultural knowledge and expertise, in his role as Cultural Advisor to the CEO’s Office. Much of his work is woven throughout the office and is evident throughout the Outcomes Section. Working with and alongside these leaders of Ngāti Awa is an absolute privilege and I thank the hapū and Iwi for giving me that opportunity in my role as Manahautu. Our staff and contractors, while thin on the ground, have managed, yet again, to produce some great work and outcomes for the hapū and Iwi. They are a very resilient team of people who collectively, through their passion and commitment to the kaupapa, have been unwavering in their ability to get the work done. I acknowledge the kahui kaumātua and hapū leadership in their many forms, nō reira tēnā koutou tēnā koutou tēnā tātou katoa.

TRoN A

There have been numerous instances where Te Rūnanga o Ngāti Awa has worked closely with hapū, particularly around mana whenua issues with local bodies or neighbouring Iwi. One such example this year, was the call for submissions on the proposed Whakatāne District Plan. The District Plan is the basis by which Council will seek to promote and manage change over the next 10 years. Te Rūnanga o Ngāti Awa hosted a series of hui and workshops to inform and assist in the preparation of hapū led submissions, supported by a submission from Te Rūnanga o Ngāti Awa. As tangata whenua and kaitiaki, ngā uri o Ngāti Awa and the Rūnanga acted in order to protect our culture, environment, resources and people in accordance with Ngāti Awa tikanga and kawa. The objective was to facilitate Iwi unity, support hapū leadership and collective strength on matters of importance to Ngāti Awa. For those hapū who chose to be involved, draft submissions were constructed which focused on their rohe and how their rohe was being impacted by the Whakatāne District Council 10 year plan. These draft submissions were signed off by hapū representatives and formally lodged with the District Council in September 2013. The most controversial issue was the proposed marina and housing developments adjacent to Opihi-whanaungakore Urupā. Over 380 Iwi submissions objected to this proposal. By May 2014, Ngāti Awa had mobilised and a large contingent attended the District Plan hearings to express their strong opposition to the residential and marina developments at Bunyan Road. The Rūnanga received the independent hearings commissioners’ decision in June 2014, which largely supported the stance of the Rūnanga and hapū submissions. The decision found that there was no justification for rezoning the Bennett Block to provide for marina development; extended the existing Coastal Protection Zoning; and changed the current Plains Rural zoning to Rural Coastal Zone. The Rural Coastal Zone is more restrictive to development than the Plains Rural Zone and better reflects the nature of the site. However, the decision also found that the Piripai/Opihi Block could be reasonably subdivided and developed for residential purposes, subject to the development of structure/management plans for various matters, including protection of cultural values associated with the Opihi-whanaunga-kore Urupā. The management plan is to be developed in consultation with Ngāti Awa as tangata whenua and kaitiaki of the area. The decision noted that the area had been identified for residential development since 1976 and that consent for development was granted in 2002, demonstrating a long-standing expectation of development for the area. The Rūnanga is supporting the Opihi-whanaunga-kore Trustees decision to

Enid Ratahi-Pryor Q.S.O

CEO Te Runanga o Ngati Awa

15

TE ARA POUTAMA

ACHIEVEMENTS 2013-2014 Ko Ngāti Awa Te Toki

CULTURAL

outcomes TŪRANGAWAEWAE

TŪ PAKARI

• Ongoing advice to Visitor Experience Guide training (Jul 2013) • Cultural advice and support provided to hui a hapū for Ohiwa/Ohinemataroa and surrounding rohe (Aug 2013) • Cultural advice and support to hui a hapū for Rangitaiki/Tarawera and surrounding rohe (Aug 2013) • Tourism Strategy – Histories and stories provided on the various hikoi being developed (Aug 2013) • Mataatua Wharenui Book first draft form publisher received and reviewed (Feb 2014) • Preparation of cultural evidence to support Ngāti Awa’s position on Opihi Whanaungakore at District Council Commissioners hearings (May 2014) • Hui held with Department of Conservation over Whakapaukōrero and Te Awa a Te Atua and co management of the Matata Reserve (May 2014)

• Formal application to Manatū Taonga Ministry for Culture & Heritage seeking ownership of the Taonga Tūturu found at Reid’s Canal Rd, Whakatāne (May 2014) • Media engagement over Tūwharetoa ki Kawerau denying registration to Ngāti Awa affiliated members (Jul 2013) • Media engagement over RENA (Jul 2013) • Media engagement over 500yr old remains of kuia found Whakatāne Hospital (Jul 2013) • Attended Ngai Te Rangi and Ngā Potiki Treaty settlement signing (Dec 2013) • Media engagement over Whakatane River rāhui (Jan 2014) • Attended opening of Te Whare Hou, at Tāneatua (Mar 2014) • Meeting held with Senior Conservator of the Ministry of Culture and Heritage of the preservation and conservancy of taonga tuturu (Apr 2014) • Participated in the dedication of the Pou erected at Pukehinahina to commemorate those that fell at the Battle of Gate Pa (Apr 2014) • Collections Management System scoped to enable better management of taonga collections (June 2014) • Radio Frequency Identification Device (RFID) scoped to provide security and protection of taonga (June 2014)

16 | Te Rūnanga o Ngāti Awa Annual Report 2014

TOI ORA • Keith Shannon Collection cataloguing implemented (Apr 2014) • Mataatua Wharenui conservation project scoped (Jun 2014) • Resource consent variation application made for Mataatua wharenui (Jul 2013) • Community engagement – cultural advice provided on Awakeri history for centennial booklet • Community engagement – Ngāti Awa welcoming party for Aotearoa 1 landing at Ohiwa Harbour (Jul 2013) • Community engagement – lecture at Auckland University on Mataatua and Ngāti Awa’s connection to Auckland (Jul 2013) • Judging for Rangitaiki Festival at Kokohinau Marae (Jul 2013) • Whakatāne Hospital history wall unveiled (Aug 2013) • Eastern Bay Energy Trust pohiri held at Mataatua (Aug 2013) • Ohope Beach Primary School hosted at Mataatua (Aug 2013) • Hosting Te Kura Kaupapa Māori o Whangaroa and providing history on Mataatua (Nov 2013) • Media engagement – Whaikōrero, Māori TV (Nov 2013) • Media engagement – Tautohetohe, Māori TV (Nov 2013) • Community engagement – Wānanga held with Te Tari Puna o Aotearoa on Ngāti Awa history and tikanga (Nov 2013) • Competed in Tautohetohe (Nov 2013) – Ngāti Awa 2013 winners • Attended the 50th celebration of the Poukai at Kokohinau Marae (Jan 2014) • Participated at Mataatua Kapahaka Regionals as Judge (Feb 2014) • Opened wharenui, Kimihia I Te Mātauranga in

MAURI ORA • Stories relating to Tunanui hikoi, Hape hikoi, Rawaho hikoi, and Tamarau hikoi collated for tourism strategy (Jul 2013) • BOPRC and its Māori forum – discussions held on Ngāti Awa waahi tapu sites (Nov 2013) • Cataloguing of taonga held by NARA initiated (Jan 2014)

• • • • • • • • • • • •

support of Iwi relationships with Tūhourangi, Waitaha and Tapuika (Feb 2014) Memorial plaque unveiled at Whakatāne Hospital (Feb 2014) Media engagement – Te Tepu (Apr 2014) Opened wharekai with four other tohunga at Waimana; Tauanui Marae, Te Onoonomaiwaho (Apr 2014) Mataatua hosted Tuhoe Hauora o Nga Uri o Maui, Gisborne (Aug 2013) Mataatua hosted the following organisations (Sept 2013) o Maori Women’s Welfare League o Te Kaokao Takapau Mataatua hosted the National Body of Māori Weavers (Oct 2013) Mataatua hosted the Kuia Harvest Wānanga (Oct 2013) Mataatua hosted the following organisations (Nov 2013) o Office of Treaty Settlements o Awanuiarangi Tourism students o Arohanui Art and Education Trust o Te Mangai Paho Indigenous broadcasters Mataatua hosted the following organisations (Dec 2013) o Anamata Conference o Te Purapura o Te Mānuka Tūtahi o Tūhoe Hauora Mataatua hosted Ngā Uri o Maui (Jan 2014) Mataatua hosted the following organisations (May 2014) o Pou Whakaaro Tikanga Group o Te Tohu o Ora o Ngati Awa Mataatua hosted the following organisations (Jun 2014) o Tawharau Matariki Concert o Te Arawa kaumātua o Treaty, 16th June Celebrations o Te Reo Reiuru launch

• Attended at Reid Canal to karakia site where taonga including a ko, hoe and rakau kōrero were found (Jan 2014) • Preparations for the erection of a plaque to commemorate the battle of Kaokaoroa in Matata (May 2014) • Mataatua hosted the Bay of Plenty Regional Council Treaty of Waitangi training programme (Mar 2014)

17

LEADERSHIP

outcomes TŪRANGAWAEWAE • Customary Marine Title application filed (Oct 2013) • Hapū representatives elections held 5 Oct 2013 • Application to determine ownership of Otaramuturangi filed (Aug 2013) • Application opposing the downgrading of Otaiti from outstanding natural character status filed (Aug 2013) • Discussions held with Ministry of Culture and Heritage over conservation of taonga tuturu found at Te Awa o Warahoe (Jan 2014) • Cultural and Heritage FTE employed to progress conservancy of Ngāti Awa taonga (Feb 2014) • Education FTE employed to progress the Ngāti Awa Education Strategy and Rautaki Reo strategy (Feb 2014)

18 | Te Rūnanga o Ngāti Awa Annual Report 2014

TŪ PAKARI • Ngāti Awa group Holdings Ltd Strategic documents signed off (July 2013) o Five year plan o Statement of Intent • Submissions made to the WDC District Plan opposing developments at Opihi, Piripai and Orini (Marina development)(Sept 2013) • Hui held on Motiti Island over RENA (Aug 2013) • Hui held with Ngai Tangihia hapū of Ngāti Rangitihi over Otaramuturangi, Te Kaokaoroa, and Tarawera pollution claim (Aug 2013) • Discussions held with Ngāti Makino, Ngāti Whakahemo, and Te Arawa over purchase of Otamarakau farm (Dec 2013) • Hui held with Minister of Treaty Settlements together with Ngāti Whakahemo, Ngāti Makino, and Te Arawa over proposed purchase of Otamarakau farm (Dec 2013) • Attended the launch of the Māori Economic Development Strategy held at Mataatua (Jan 2014) • Attended the Iwi Collective Forum hui • Ngāti Awa Education and Rautaki Reo strategies operationalised. Three work streams scoped (May 2014) o Ngā Pūrakau o Ngāti Awa – developing curriculum resources o Ngāti Awa Classroom – developing coherence across education, training, and social sectors o Leadership – developing future leaders • Mataatua hosted the Whakatane Bed and Breakfast Association (Aug 2013) • Mataatua hosted Super Travels (Oct 2013) • Mataatua hosted the Office of Treaty Settlements (Nov 2013) • Mataatua hosted the Maori Economic development Strategy Launch (Feb 2014)

TOI ORA

• Mataatua hosted the following organisations (May 2014) o Grab a Random Air NZ o Time Unlimited Tours o Tourism Export Council Board • Mataatua hosted the following organisations (Jun 2014) o Whakatane and Opotiki I-site o The Deputy Prime Minister the Hon. Mr Bill English

• WW1 Commemoration events scoped (May 2014) • Tuia Haerenga – hosted nine rangatahi from all over Aotearo to enable to gain perspective on Ngāti Awa leadership from a Rūnanga perspective (Jul 2013) • Officiated pohiri for new Whakatane District Councillors (Nov 2013) • Attended National Rangatahi Conference (Nov 2013) • Attended Eastern Bay of Plenty Regional Awards (Nov 2013) • Discussions held with Whakatāne Hospital on Project Waka – to erect a memorial on hospital site to commemorate koiwi found there (Nov 2013) • Advice provided to Whakatane Hospital over commissioning of a Mural depicting Ngati Awa history (Nov 2013) • Hosted the Court Judges Wānanga at Mataatua (Jan 2014) • Hui held with Ahuwhenua organisers over Ngāti Awa farm, Ngakauroa being an entrant in the competition (Feb 2014) • Mataatua host of the Bay of Plenty Regional Council workshop (Mar 2014)

MAURI ORA • Cultural advice provided in respect to application to Māori land court over Otaramuturangi (Jul 2013) • Hui held with Tapuika, Waitaha, Ngā Potiki, Ngāti He, and Ngāti Pukenga to further Iwi relationships and karakia over Papamoa hills • Attended the Environment Court in respect to the Te Ahi o Maui Geothermal Development to provide evidence of Ngati Awa’s connections to Kawerau (Feb 2014) • Mataatua provided catering support to the TRoNA induction programme (Feb 2014)

19

resources

outcomes TŪRANGAWAEWAE • Review of the Ngāti Awa Resource Management Plan (Aug 2013) • Nohoanga projects scoped for implementation 2014-2015 (Dec 2013) o Okōrero – Thornton o Ihukatea – Ohope • Cultural Identification – the naming of dwellings, lagoons and wetlands and other features on Tumurau and Ngakauroa Farms (Aug 2013) • Ngāti Awa submissions to the Whakatāne District Council (WDC), District Plan completed (Sep 2013) o Deferred marina precinct o Opihiwhaungakore • Ngāti Awa submission to WDC proposal on Te Haehaenga (Te Hau o Te Rangi Reserve) made (Sept 2014) • Maraetotara Sewage Chamber upgrade – cultural impact assessment provided (Sept 2013) • Cultural impact assessments July – Oct 2013 o D & K Murray Subdivision, Thornton o Dawn Parade Subdivision, Piripai o A & Rust Contracting Rototaha Road Quarry, Matahina o Whakatane District Council Ohope Wastewater Discharge o Wilson Brothers Nukuhou Quarry o Horizon Energy Ltd, Mill Road Subdivision o BOP Regional Council Kopeopeo Canal Remediation Project o Ngati Tuwharetoa Geothermal Assets Ltd, KA49 Drilling Kawerau

20 | Te Rūnanga o Ngāti Awa Annual Report 2014

o Tonkin & Taylor Ltd, Debris Bund, WestEnd Ohope o Frontier Helicopters Ltd, Whakatāne Heliport o SCA Hygiene Ltd, Discharge to Tarawera River o Ngati Tuwharetoa Geothermal Assets Ltd, Discharge to Tarawera River o ATS Environmental Awatapu Lagoon & Whakatāne River Habitat Restoration Plan o J Swap Contractors Awakeri Quarries o Whakatāne District Council pavement rehabilitation and drainage improvement works for Hillcrest Road, Whakatāne o Ngāti Tuwharetoa Holdings Ltd – Otarahanga Pumice Quarry o Kiwi Tracker Proposal – Ohope Scenic Reserve o Department of Conservation – Slip Repairs & Construction of a Pedestrian Footbridge, Moutohora o Whakatāne District Council – Matata Sewage Initial Assessment o Bay of Plenty Regional Council Biodiversity Management Plan for Nukuhou Saltmarsh and Uretara Island, Ohiwa Harbour o Ngāti Tuwharetoa Geothermal Assets Ltd pipeline crossings of the Ruruanga Stream and Tarawera River o Ngāti Tuwharetoa Geothermal Assets Ltd to take geothermal fluid from the Kawerau Geothermal Field o Norske Skog Tasman Vermicomposting Operation o New Zealand Transport Agency for the upgrade or full replacement of the SH2 Pekatahi Bridge over the Whakatāne River o Whakatāne Harbour Care Group Biodiversity Management Plan for the Whakatāne Harbour o BOPRC agrees to transfer title of 44 Keepa Road to Ngāti Awa (Dec 2013)

TOI ORA TŪ PAKARI • Collaboration with local and regional councils to implement mauri enhancement projects on Ngāti Awa Heritage estate (Jul 2013) • Liaison with Te Tapa Toru a Toi Joint Management Committee (ongoing) • Attendance at the Ohiwa Harbour Strategy Group (ongoing) • Liaison with Mai Nga Kuri a Wharei ki Tihirau (ongoing) • Trustpower Hydroelectric Dam Matahina – Rangitaiki Hapū Coalition negotiations with Trustpower successfully concluded with support from TRoNA (Oct 2013) • Customary Marine Title application filed (Oct 2013) • Ngāti Awa opposition to downgrading of the outstanding natural character status for Otaiti (Astrolabe Reef) successfully argued (Aug 2013) • Joint Rohe Moana negotiations with Whakatohea and Ngai Tūhoe implemented (Feb 2014) • TRoNA support provided to Para Kore – Marae zero waste by 2020 • Bay of Plenty Regional Coastal Plan – TRoNA submission on the plan implemented (Jun 2014) • Whakatāne Kiwi Trust – negotiations underway to revise MOU (May 2014) • RENA – continuing to support hapū follow through court process (June 2014) • Aquaculture – liaison with Ministry of Primary Industries and Te Ohu Kaimoana over the Regional Agreement under the Māori Commercial Claims Settlement Act 2004 () • TRoNA Financial systems revised and upgraded (Jan – Jun 2014) • Ngakauroa Farm named finalist in the Ahuwhenua Māori Excellence in Farming Award (Feb 2014)

• Awarapatuna wetlands constructed on Ngāti Awa Heritage Estate (Dec 2013) • Kuia Harvest held (Nov 2013) • Mussel / Starfish Survey at Ohiwa Harbour follow-up (Mar 2014) • Ngakauroa Farm – upgrade to effluent and race system scoped (Mar 2014) • Ngakauroa Farm – waterway management (canals and drains) waterway plantings in native species scoped (Mar 2014) • Mahinga Kai project on Tumurau Farm scoped for implementation 2014-2015 (Apr 2014) • Rangitaiki River Environmental Fund Trust established (Oct 2013) • Digitisation of NARA archives implemented (Jan 2014) • Mataatua hosted the Bay of Plenty Regional Council Consents Team (Aug 2013) • Mataatua hosted the Bay of Plenty Regional Council (Sept 2013) • Mataatua hosted the Bay of Plenty Regional Council staff training (Nov 2013) • Mataatua hosted the Bay of Plenty Regional Council (Dec 2013)

MAURI ORA • Maraetotara stream plantings project completed (Aug 2013) • Maungateone enhancement project finalised (Aug 2013) • Wairere Stream headwaters enhancement project finalised (Jul 2013) • Awarapatuna wetlands construction implemented (Dec 2013) • Toangapoto – vehicle access, plant pest eradication and planting of native species scoped (Apr 2014) • Tumurau Farm – 3 x wetlands identified for retirement and native plantings (Mar 2014) • TRoNA written support provided for slip repairs and the construction of a footbridge on Moutohora (June 2014)

21

wellbeing

outcomes TŪRANGAWAEWAE

TOI ORA

• Te Reo Irirangi O Te Mānuka Tūtahi – Rautaki Reo project scoped and developed (Aug 2013) • Ngāti Awa te Toki Kapahaka celebrations planned for October 2014 (June 2014) • Customary Marine Title application filed (Oct 2013) • Ngāti Awa Registrations database numbers increased by 196 new registrations from July 2013-June 2014

• Nohoanga projects scoped for implementation 2014-2015 (Dec 2013) o Okōrero – Thornton o Ihukatea – Ohope • Pataka Kai Meat Policy implemented (Apr 2014). 280kgs of meat distributed to 13 tangihanga • Pataka Fish distributed to 53 tangi for 20132014 year • Mataatua Māori Marae experience event held (Aug 2013) • Mahinga Kai project on Tumurau Farm scoped for implementation 2014-2015 (Apr 2014) • Kuia Harvest held (Nov 2013) • Education Grants provided to 118 recipients as follows: o 9 x diplomas o 85 x bachelors o 7 x postgraduates o 12 x masters o 5 x PhDs • Ngāti Awa Hākinakina held May 2014 Placings were: o 1st Ngai Te Rangihouhiri o 2nd Ngai Taiwhakaea o 3rd Ngāti Hokopu ki te Whare o Toroa • Ngāti Awa uri accessed NARA to undertake the following research (May 2014): o Court Minute Books; o Puketapu; o Te Kupenga; o Wairaka and Ngāti Hokopu;

TŪ PAKARI • Mahinga Kai project on Tumurau Farm scoped for implementation 2014-2015 (Apr 2014) • Iwi Leaders Education Forum Auckland attended (July 2014) • Trustpower Matahina dam – memorandum of the parties in support of the consent ratified (Aug 2013) • Rūnanga attends hui at Ngāti Awa ki Tamaki Makaurau (Aug 2013) • Te Reo Irirangi o Te Mānuka Tūtahi and Tumeke FM awarded Iwi Radio Station of the Year Award (May 2014) • Attended Apanui School prize giving (Dec 2013) • Attended Paroa Junior prize giving (Dec 2013) • Attended Paroa Senior prize giving (Dec 2013) • Attended Midland Iwi Board Governance training (Dec 2013) • Attended “Into Cassino” opening at Te Koputu • Attended hui for Pukehinahina 150th commemorations • Tourism Council hosted at Mataatua (May 2014) • WW1 Commemorations finalised (May 2014) • Provided support and guidance to a team of Doctors who went to Waimana to learn models of healthcare from Tūhoe, Mataatua and Ngāti Awa perspectives (May 2014)

22 | Te Rūnanga o Ngāti Awa Annual Report 2014

• • • • • • • • • • • •

o Te Papaka; o Assistance to track Maori land block successions; o Whakapapa; o Photographs; o Nga wānanga Tawhito o Ngati Awa; o Te Whare Katorika kei Wairaka; o Nga Maramataka Tawhito o Ngati Awa; o Otipa Whakatāne Probus society 25th birthday celebration held at Mataatua (Nov 2013) Attended Anamata Co existing disorders hui (Nov 2013) Meetings held with Principal Apanui School on preparations for re-opening of infant building (Nov 2013) Attended Anamata Co-Existing Disorders Summit (Dec 2013) Attended opening of Tāneatua Church (Jan 2014) Community engagement – attended the national stand-up paddle boarding competition at Ohope (Jan 2014) Mataatua host Te Kura o Te Teko (Mar 2014) Awanuiarangi graduation held at Mataatua (Apr 2014) Whakatane Beacon 75th birthday held at Mataatua (Apr 2014) Ngāti Awa Educations Grants ceremony held at Mataatua (Apr 2014) Officiated at the opening of the opening of the new Whakatāne Hospital Mataatua hosted the following organisations (Jul 2013)

•

o Goldsmiths Accounting o Sun Air Aviation o Tautoko Mai Parenting Mataatua hosted the following organisation (Aug 2013) o Tokorau Conference Dinner o Chamber of Commerce o Open Polytechnic of NZ o Thornton School • Mataatua hosted the following organisations (Sept 2013) o Awakeri School International Students o Tāneatua School o Stafford Group o Ministry of Foreign Affairs Taiwan Poets • Mataatua hosted the following organisations (Oct 2013) o Ohope Probus Group o Whanau reunion o Whakatāne Probus o Ministry of Education Cluster visit • Mataatua hosted the following organisations (Nov 2013) o Eastern Bay Energy Trust National Conference o Whakatane High International Students o Te Wharekura o Ruatoki o Dept of Corrections o Awakeri School o Ohope School o Te Kura Kaupapa Maori o Whangaroa

MAURI ORA • Cultural advice provided in respect to application to Māori land court over Otaramuturangi (Jul 2013) • Hui held with Tapuika, Waitaha, Ngā Potiki, Ngāti He, and Ngāti Pukenga to further Iwi relationships and karakia over Papamoa hills.

• Attended the Environment Court in respect to the Te Ahi o Maui Geothermal Development to provide evidence of Ngati Awa’s connections to Kawerau (Feb 2014)

23

2014 NGĀTI AWA TERTIARY EDUCATION

118 Grant Recipients Te Pahipoto Recipients

Tamaki and Poneke Recipients

Taiwhakaea Recipients

24 | Te Rūnanga o Ngāti Awa Annual Report 2014

Ngāti Pūkeko Recipients

TE TAWERA

Rangipare Ngaropo Te Ngakooterangi Te Tawera

NGÄ€ MAIHI Dara Dimitrov Ashlea Gillon

Grace Harper-Tierney Isaac Hayes

Bachelor of Arts and Social Sciences Doctorate in Indigenous Studies

The University of Waikato Te Whare Wananga o Awanuiarangi

Doctor of Philosophy Postgraduate Diploma in Public Health Diploma in Sport and Recreation

The University of Waikato The University of Auckland

Cynthia Tuihi Pryor

Masters in Dairy Science and Technology Bachelor of Laws/ Bachelor of Media and Creative Technologies Bachelor of Social Work Bachelor of Social Work (BSW) Bachelor of Social Sciences Graduate Diploma of Teaching Te Paetohu o Te Whakarara Oranga Bachelor of social work PhD in Environmental Studies

Antonia Yarnton

Bachelor of surgery and medicine

Saska Hayes Paora Hona Tracey Lee Nadia Mantell Ihipera McLean William Tako Paul

NGAI TAIWHAKAEA II Peter Aukaha Pauline Bennett Vanessa Hudson Shonelle Iopata Aussina Kohunui-Harpur Airini Mason Canning Mason Gina Milosevic Zivana Milosevic Kelly Matewawe Moore Helena Pauro Dayna Studer Tuhapo Tipene Pera Tutua-Nathan Jenny Wahapango Kerena Wano

NGAI TAMAOKI

Auckland University of Technology (AUT) Massey University The University of Waikato Te Wananga o Aotearoa The University of Waikato The University of Waikato The University of Waikato Te Wananga o Aotearoa Te Whare Wananga o Awanuiarangi The University of Otago

Bachelor of Applied Social Service Northland Polytechnic Bachelor of Arts/Bachelor of Fine Arts The University of Auckland Master of Idigenous Studies Te Whare Wananga o Awanuiarangi Bachelor Matauranga Maori Te Whare Wananga o Awanuiarangi Diploma in Culinary Arts Waiariki Institute of Technology Bachelor of Science The University of Canterbury Bachelor of Engineering The University of Canterbury Bachelor of Nursing Waiariki Institute of Technology Diploma in Hairdressing Waiariki Institute of Technology Pouturongo Reo Te Wananga o Raukawa Bachelor of Nursing Universal College of Learning Bachelor of Nursing Waikato Institute of Technology Masters Degree in Maori Studies Te Whare Wananga o Awanuiarangi Bachelor of Commerce Victoria University of Wellington Bachelor of Social Services Te Wananga o Aotearoa Bachelor of Arts The University of Waikato

Gloria Hunia Renee Matenga

Bachelor of Arts with Honours Bachelor of Registered Nursing

Kaimai Natusch

Bachelor of Maori studies

Barry Savage

Bachelor of Applied Social Sciences

Desmond Teirney

Bachelor of Arts

The University of Waikato Waikato Institute of Technology Eastern Institute of Technology Waiariki Institute of Technology Victoria University of Wellington

25

NGAI TAMAPARE Maria Elder

Bachelors in Social Work Biculturalism In Practice

Te Wananga o Aotearoa

Bachelors Social Science, Psychology Post graduate Diploma in Education Bachelor of Media and Creative Technologies Master of resource and environmental planning Bachelor of Maori and Pacific Development

The University of Waikato The University of Auckland The University of Waikato

Bachelor of Environmental Studies

Te Whare Wananga o Awanuiarangi

Anya Goodall

Bachelor of Health Science, Nursing

Te Taiawatea Moko-Mead

Master of Conservation Biology

Kale Noa Noa

Bachelor of Science

Auckland University of Technology (AUT) Victoria University of Wellington The University of Otago

NGAI TAMAWERA

Paremaemae Hori Melevea Huihui Shae Himone Maxwell Hayley Millar Rickie Lee Te Tai

NGAI TE RANGIHOUHIRI II Quintin Kerr

NGĀTI AWA KI PONEKE

NGĀTI AWA KI TAMAKI MAKAURAU Hakahaka Hona Lisa Mannington Kimiora Raerino Veronica Waiari

Massey University The University of Waikato

Master of Arts Bachelor of Arts Doctorate in Philosophy Bachelor of Business (Accounting Major)

The University of Auckland Massey University The University of Auckland Open Polytechnic

Desmond Hiwarau

Bachelor of Nursing

Jubert Moeke Hinerangi Wiri

Bachelor in Social Work Bachelor of Science/ Bachelor of Arts Conjoint

Waiariki Institute of Technology Te Wananga o Aotearoa The University of Auckland

NGĀTI HAMUA

NGĀTI HIKAKINO Hori Barsdell Jade Westrupp

Bachelor of Arts with Honours Bachelor of Health Science

NGĀTI HOKOPU KI TE HOKOWHITU Caitlin Balkin Erueti Biddle Pearly Keepa-Mark

Bachelor of physical education Bachelor of Medicine and Surgery Hairdressing

Tuawhiorangi Wharewera-Elliott

Bachelor of Business

NGĀTI HOKOPU KI TE WHARE O TOROA Elizabeth Hudson Paula Hudson

Tylee Hudson Kennedy Yvette Kahika Hilda Okwara Edward Sykes Fay Withers

The University of Otago Auckland University of Technology (AUT) The University of Otago The University of Otago Waiariki Institute of Technology Auckland University of Technology (AUT)

Bachelor of Arts The University of Auckland Bachelor of Arts, Events Management Auckland University of Technology (AUT) Graduate Diploma of Teaching The University of Waikato Bachelor of Teaching Early Childhood Waiariki Institute of Technology Post Graduate Diploma - Special The University of Canterbury Needs and Inclusion Bachelor Of Management Studies The University of Waikato Bachelor of Management Studies The University of Waikato

26 | Te Rūnanga o Ngāti Awa Annual Report 2014

Adrienne Paul

Master of Laws

The University of Waikato

Angela Bidois

Bachelor of Health Science-Midwifery

Erena Browne

Mac Kingi

Bachelor of Medicine, Bachelor of Surgery Bachelor of Exercise and Sport Science L7 Certificate in Te Awa Tuapapa

Auckland University of Technology (AUT) The University of Auckland

Renee Kingi Elijah Chadwick Knight Angela Perepere McCauley

Bachelor of Management Studies Bachelor of Applied Management Master of Idigenous Studies

Tayla McCauley-Walker Joshua Moore

Bachelor of Tourism Post Graduate Diploma in Secondary Teaching Bachelor of Maori Art Level 4 Health and Fitness Bachelor Of Nursing Year 2

NGĀTI PUKEKO

Jackara Chase

Polly Rapana Tura-ki Smith-Matenga Ani Tai Nassah Te Kani-Green Jason Wikeepa Krystal Wirangi

NGĀTI RANGATAUA Nikora Heitia Vicki Merito

TE KAHUPĀKE Jessica Wiperi

TE PATUWAI Maia Connor

Kevin Hiha Ngahu Potaka Te Motu Savage Tracey Takuira

WARAHOE

Marewa Titoko

WHAREPAIA Grace Abbott Shayden Bell Dallas Cole Ashley Ellis

Conjoint Bachelor of Commerce/ Bachelor of Arts Programme Bachelor of Engineering Bachelor of Education(teaching)

Universal College of Learning Te Whare Wananga o Awanuiarangi The University of Waikato Otago Polytechnic Te Whare Wananga o Awanuiarangi The University of Waikato Bethlehem Tertiary Institute Te Wananga o Aotearoa Te Wananga o Aotearoa Waiariki Institute of Technology Victoria University of Wellington The University of Auckland Te Whare Wananga o Awanuiarangi

Te Ahu Taiao; Bachelor of Environmental Studies Bachelor of Education Primary School Teacher

Te Whare Wananga o Awanuiarangi Te Whare Wananga o Awanuiarangi

Diploma in Business for Accounting Technicians

Christchurch Polytechnic Institute of Technology

Te Tohu Paetahi Ako- Bachelor of Education Bachelor of Science Masters of Tikanga Maori Bachelor of Social Work Master of Indigenous Studies

Te Whare Wananga o Awanuiarangi The University of Auckland The University of Waikato Te Wananga o Aotearoa Te Whare Wananga o Awanuiarangi

Bachelor Social Work in Biculturalism

Te Wananga o Aotearoa

Bachelor of Laws/Bachelor of Arts conjoint degree Bachelor of Dental Surgery Bachelor of Education

The University of Auckland

Bachelor of Medicine and Bachelor of Surgery

TRoN A

NGĀTI MAUMOANA

The University of Otago Te Whare Wananga o Awanuiarangi The University of Auckland

27

TE PAHIPOTO

Merenia Anderson Yvonne Bigwood Erin Carr Freddy Carr Raina Angela Corbett Douglas Edwards Mereheeni Fox Kataraina Godfery Ellen Henry Alishia Mansell Makarita McDonnell Hinetaapora Moko-Mead Joseph Ngaheu Melissa Niao Cher Pahi Marly Donna Perese Rangitiaria Pihama Rochelle Pihama Sita Shankar Sidney Stoneham Katerina Taikato Fiona Waititi Lasha Wineti

Te Tohu Paetahi Ako - Bachelor of Education Bachelor of Business

Te Whare Wananga o Awanuiarangi Auckland University of Technology (AUT) Bachelor of Laws (Honours); Bachelor Victoria University of of Arts Wellington Bachelor of Commerce Victoria University of Wellington Bachelor of teaching - Early Childhood Waiariki Institute of education Technology Master of Physiotherapy (Endorsed) University of Otago Bachelor in Social Work (Biculturalism Te Wananga o Aotearoa in practice) Bachelor of Business Auckland University of Technology (AUT) Doctor of Maori/Indigenous Te Whare Wananga o Development & Advancement Awanuiarangi Tahuhu Whakaakoranga (Masters in Te Wananga o Raukawa Maori Medium) Bachelor of Health Science The University of Auckland Bachelor of Law, Bachelor of Arts Victoria University of Wellington Bachelor of Environmental Studies Te Whare Wananga o Awanuiarangi Bachelor of Medicine and Bachelor of The University of Auckland Surgery Postgraduate Diploma in Education The University of Auckland (yr 1 towards Masters) Te Tohu Paetahi Ako: Bachelor of Te Whare Wananga o Education (Teaching) Awanuiarangi Bachelor of Arts The University of Auckland Bachelor of Teaching/Bachelor of Arts The University of Waikato Bachelor of Social Work. Christchurch Polytechnic Institute of Technology New Zealand diploma of Business Waiariki Institute of Technology New Zealand diploma in Engineering Christchurch Polytechnic (Civil) (Level 6) Institute of Technology Bachelor of Social Work (Biculturalism Te Wananga o Aotearoa in Practice) Bachelor in Nursing Level 7 Tehei Waikato Institute of Mauri Ora Stream Technology

28 | Te RĹŤnanga o NgÄ ti Awa Annual Report 2014

DEVELOPMENT NGĀTI AWA Introduction The promotion of te reo Māori me ona tikanga remains the primary objective for the trust. Tumeke FM, Sun Fm and Pu Kaea continue to provide news, articles and information about Ngāti Awa and the wider Mataatua confederation. While Pu Kaea has not been published as regularly as it should due to sponsorship challenges, it remains an important element in the promotion of the stories of our communities. Broadcasting A significant investment in broadcast technology was made this year with the introduction of NexGen the industry leading and standard radio automation system. An increase in operational funding from Te Māngai Paho has made this possible. Community engagement remains essential in developing our brand and identity at various events including live broadcasts, on site promotions with clients, interviews, maintaining a presence at key local events like the recent Ngāti Awa Te Toki Festival, Te Whare Wānanga o Awanuiārangi Graduation, Ngāti Awa hapū Challenge, BOP Steamers activities, assisting Moana AM broadcast the National Secondary Schools Kapa haka and support for the Whakatäne Business Excellence Awards – Leadership Award. Production Recently we produced the EP Reiuru which has found success on various levels. Tirama – a waiata about youth shining made a placing in the Māori top 20 countdown within a month of release. Still remaining

in the charts it reached 4th place its highest thus far. Manu Kaewa - Again this waiata made the charts within the first two months from release and remains popular. Kāti Rā –This waiata made was chosen as a finalist in the APRA Silver scroll Maioha Awards. The development of a Smart Phone Application on digital platforms that assist in bringing our culture to the forefront of technology is a new project. The app will assist in the learning of Te Hahi Ringatū himene, pānui waiata and karakia. The Kaumātua Archival Video project remains for completion once suitable sponsors and funding have been secured. This longstanding and ongoing project serves to collect and preserve our unique language and all of its dialectical richness by recording our native speakers. Financial performance Financial performance continues to improve with income of $640,051 ($530,275 in 2013). Tumeke and Sun FM continue to grow the client base with the addition of important new clients. Sales income increased to $226,127 ($113,175). Expenses also increased to $665,071 ($582,368). Although a deficit of $35,181 ($44,466) was recorded for the year ended 30 June 2014, $34,532 of this was for depreciation. This annual cost reflects the nature of the broadcasting business and how it is necessary this equipment is kept up to date. Net assets increased to $365,675 ($347,877). Awards Tumeke FM was awarded Best Radio Commercial and Outstanding individual Achievement or Contribution to Iwi Radio at the recent Iwi radio Awards. The station also won the Iwi Station of the year at the 2014 New Zealand Radio Awards.

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TE REO IRIRANGI O TE MĀNUKA TŪTAHI TRUST

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TE TOHU O TE ORA O NGāTI AWA SOCIAL & HEALTH SERVICES

while Te Whānau a Apanui made up 6% of the Māori staff numbers. The other 9 Iwi staff affiliated to are shown in the graph below. Graph 1: Iwi Affiliation of Staff

This year has been positive for Te Tohu o Te Ora o Ngāti Awa with our involvement in some significant strategies, projects and activities. It has been an extremely busy year for the organisation with the balancing of projects and activities to ensure none of the projects are compromised as a result of loss of focus. Streamlined contracting is a government priority which is being implemented nationwide. Te Tohu O Te Ora O Ngāti Awa has been identified by the Ministry of Health as one of the top 30 providers identified to participate in this project. Streamlined contracting aims to reduce variance in, and duplication of, contract management practices across government agencies and reduce the compliance cost burden on NGOs. The project supports the provision of ‘Better Public Services’ by providing tools that better enable fit-forpurpose contracting arrangements. The challenge is getting all the government departments on board and participating in the project. We continue to work with the Ministry of Health who are leading the project with a view to implementing streamlined contracting for the organisation. One of the challenges for the organisation this year has been in the area of staffing. Attracting appropriately qualified and experienced people who fit into the kaupapa of the organisation is difficult as is retaining them once they have qualified given government and other agencies are able to pay a higher level of remuneration. While our focus is on increasing the number of staff with Ngāti Awa affiliation, finding people from the Iwi to fill positions has been a real challenge. This year the organisation employed a total of 83 people during the year. Of the 83 staff employed, 72 or 87% of all staff employed were Māori. NZ European made up 8% while the remaining ethnicities American, Cook Island Samoan and German each comprised 1% of the total staff numbers. Sixty-four percent (64%) of all staff employed were fulltime employees and 8% were part time. Twenty-three percent (23%) were casuals with the majority being employed to support Te Waipuna Ariki o Matangireia. Four percent (4%) were on fixed term contracts and employed for specific projects or work that did not have continuous funding while 1% of our staff was on parental leave. The following graph shows that Māori staff affiliated to 13 Iwi. Of those staff who affiliated as Māori, Ngāti Awa by far had the largest number of staff with 63% of all Māori staff identifying as Ngāti Awa. Ngāti Porou and Te Arawa each had 7% of staff numbers

30 | Te Rūnanga o Ngāti Awa Annual Report 2014

Ngāti Awa

Taranaki

Ngāti Manawa

Te Arawa

Ngāti Kahungungu

Te Whānau-a-Apanui

Ngāti Porou

Tuhoe

Ngāti Ranginui

Waikato

Ngāti Tuwharetoa

Waitaha

Tapuika

Those identifying as Ngāti Awa affiliate with 13 of the 22 Ngāti Awa hapu. Of the 45 Ngati Awa staff, 15% staff identified as Ngai Te Rangihouhiri II. Ngai Taiwhakaea II and Te Patuwai each had 11% of total staff who identified as Ngāti Awa while Ngai Tamaoki, Ngāti Hokopu and Te Pahipoto each had 9% of staff who identified as Ngāti Awa. Other hapu represented as per graph 3 were Ngati Hikakina, Ngāti Pukeko, Ngāti Rangataua, Ngāti Rarawhati, Te Tawera, Warahoe and Wharepaia. Graph 2: Ngāti Awa Staff by Hapu Affiliation

Ngai Taiwhakaea Ngai Tamaoki Ngai Te Rangihouhiri II Ngāti Hikakino Ngāti Hokopu Ngāti Pukeko Ngāti Rangataua

Ngāti Rarawhati Te Pahipoto Te Patuwai Te Tawera Warahoe Wharepaia

Despite the majority of Māori Staff being of Ngāti Awa descent, we can improve on this. We continue to look to increase this number and will remain focused on this when recruiting.

initiatives remain based in Whakatāne which means other communities such as Matata, Edgecumbe and Te Teko remain outside the scope of the Social Sector Trials.

The Ngāti Awa Hapu Challenge saw 19 of the 22 hapu participate. This is the highest number of hapu we have ever had turnout for the Challenge. The Challenge brought together hapu members of all ages. Approximately 500 people were onsite at Te Pahitaua for the event either as a participant or supporting their hapu. As expected there was a high level of competiveness between hapu. The Challenge included a number of new activities this year which ensures it remains interesting. There was not a lot between first, second and third places this year. However the overall winners for 2015 were Ngai Te Rangihouhiri II. Ngai Taiwhakaea II were second and Ngāti Hokopu ki Wairaka were third. Congratulations to all the hapu who participated in the Ngāti Awa Hapu Challenge 2014.

The implementation of the Children’s Action Plan is a priority for the Minister of Social Development and has meant the implementation of a number of key strategies. Whakatāne was one of eight communities identified in phase 2 of the Children’s Team implementation. Children’s Teams focus is to protect vulnerable children and young people in New Zealand. The team will be made up of local education, health, and social sector professionals to respond to the needs of vulnerable children. The work of the Children’s Team is to ensure vulnerable children’s needs are assessed; all parties required to address those needs are brought to the table; a single multi-agency plan for each vulnerable child is developed; implemented, and a lead professional is allocated to see the plan through; local services are delivered according to the plan; and outcomes are achieved for each child. Child, Youth and Family and Police will retain their current statutory care and protection responsibilities. This is a new concept for the community and one which we will be actively involved with at all levels. In summary, Te Tohu o Te Ora o Ngāti Awa has been involved in the establishment and implementation of initiatives that have come about as a result of national strategy as well as those that have been driven by local need. Staff are actively participating in various forums and working groups to ensure the views of the organisation and the whānau we work with are not overlooked in the work being done cross sector and collaboratively. Management has participated in governance and advisory groups to ensure that not only is our view presented but that of the vision, goals and objectives of the Iwi through Te Ara Poutama are not lost. Our focus continues to be on Te Pou Mataaho and whānau achieving ultimate wellbeing while at the same time supporting the Iwi in its achievement of the visions and goals set out in Te Ara Poutama.

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Te Tohu O Te Ora O Ngāti Awa is working with the Ministry of Education and Whakatane High School on the establishment of a Teen Parent Unit (TPU) in Whakatane. This initiative has been a long term moemoea for the organisation and the community. Definitive decisions are yet to be made in regards to the location of the TPU although having it based on our site would enable services to be wrapped around the whanau in an endeavour to address all of their needs. The Ministry of Education identified there may be a need to increase the license for Te Waipuna Ariki O Matangireia to cater for the tamariki of the teen parents attending the TPU. This has been confirmed by the Ministry of Education and this development is being considered with the TPU development. Despite the kaupapa of Social Housing having been highlighted in the media over the past year, it is one that we have only just begun looking into. Social Housing is a kaupapa which would add value to what we do and make a difference for whanau that we work with. Initial discussions have commenced around social housing however there is still much discussion and work to be done. The challenges that exist relate to the purchase of the assets and in the establishment of the infrastructure that is best to manage social housing. Investigation and discussion around social housing, what this may look like, where it best sits and the infrastructure continue. Whakatāne was identified to establish a Social Sector Trial as part of the government’s initiatives to support taiohi to remain at school or participate in education, and to support them and their whānau to engage in their communities. In Whakatāne the challenge is that the Trials is purely focused on Whakatāne and while including taiohi who travel from other communities into one of the two local high schools,

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Ngāti Awa Group Holdings

CHAIRMANS REPORT

At a Glance Net surplus after tax Total Assets Return on Total Assets

32 | Te Rūnanga o Ngāti Awa Annual Report 2014

2014

2013

2012

$6.4 million $98 million 7%

$2.2 million $92 million 2.6%

$1.3 million $83 million 1.6%

On behalf of the Board of Directors I am very pleased to present the Annual Report of Ngāti Awa Group Holdings (NAGHL) for the year ended 30 June 2014. Overall NAGHL has performed very well returning 7% on total assets. This is up 4.4% from previous year and 5.4% from 2012. Our net surplus over the past 3 years has steadily increased returning $6.4 million this year up from the previous year by $4.2 million and $ 5.1 million from 2012. The most significant uplift is in the performance and associated return from the Ngāti Awa Dairy Platform. As outlined in our Strategic Plan 2014-2018 our approach has been to maximise our dairy assets increasing our dairy platform in both herd numbers and leased lands. The combined Ngāti Awa Group Holdings Limited and Ngāti Awa Asset Holdings Limited’s financial results for the year ended 30 June 2014 was a net surplus after tax (including non-controlling interests) of $6.4 million. This compares to the previous year’s net surplus after tax of $2.2 million. Combined Assets of the commercial operations (including non-controlling interests) increased to $98 million, previously $92 million in 2013. The graphs below quantify by asset the net surplus/deficit and return on investment.

Cash Return by Asset Dry Stock Farm CO2 Project Forestry Land Carbon Credits Property Fisheries Dairy Farms Fixed Interest -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16%

Ngāti Awa Group Holdings comprise six sectors they are: Dairy Farming, Forestry, Fishing, Tourism, Property, Equity and Fixed Interest. The sector performance is outlined below.

Dry Stock

DAIRY FARMING

Farm

10.9%

In June 2013 we purchased a 373 hec Dairy Farm, stocked Cash Return (800 cows) it with a new herd, contracted a lower order sharemilker, and went into our first year of production on Tumurau Farm. We produced 321,800kg milk solids for 2013/2014. A Fonterra payout of $8.40 over the season and the first full year of operations on the Tumurau dairy farm combined to deliver a net surplus of $2.6m on the dairy platform. This profit was boosted by the (non-cash) reversal of a $1.8m write down in the value of the Ngakauroa dairy farm. Taking this into account, the Tumurau and Ngakauroa dairy farms delivered a cash return of 10.9% for the year compared to 4.8% in 2013. Profits have been shared with our joint venture partners in both farms, with Ngāti Awa Group Holdings holding a 51% share of the Ngakauroa dairy farm, and a 68% share of the Tumurau dairy farm.

CO2 Project Forestry Land Carbon Credits Property Fisheries Dairy Farms Fixed Interest -2.5 -2.0 -1.5 -1.0 -0.5 0.0

0.5

$millions

1.0

1.5 2.0 2.5 3.0

During the year we further expanded the dairy platform with the purchase of an additional 35 hectare block at a cost of $1.15m to add to the Ngakauroa farm, and through the addition of 200 dairy cows to the milking stock.

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Net Surplus by Asset

The Board were very pleased this year to be a finalist in the Ahuwhenua Trophy Competition with Ngakauroa Farm. Celebrating and highlighting dairy farming excellence in practice and business, this competition provided an opportunity for Ngakauroa to be benchmarked against some of the highest performing maori farms in the country. I want to acknowledge our farm and management team whose performance and outcomes this year are that of a high performance team. While we didn’t win the competition the cash return and uplift in capital asset clearly depicts a solid performance from Ngakauroa and Ngāti Awa Farms Ltd this year. The graph below shows the continued improvement in production on Ngakauroa Farm. The significant increase in production in 2013/2014 is due to the strategic decision to increase stock numbers both stock numbers and grazing through additional lease blocks.

Ngakauroa Farm Consistantly Lifting Performance

FORESTRY

Ngāti Awa Group Holdings has approximately 8,384ha in forestry leases which comprises part Rotoehu (1495ha) and part Kaingaroa (6889ha). The land is leased for 35 years to Kaingaroa Timberlands and annual rental payments amount to $1.1m. This year the value of our forest lands increased by $347,000 and provided a cash return of 6.1%, Cash Return compared to 6.8% in 2013.

6.1%

CARBON CREDITS

The 2015 year does not look as promising, with an expected Fonterra payout of $5 forecast, down from the $8.40 in 2014. This is a significant decrease, led by the fall in worldwide dairy prices, and it will result in a reduced cash return in the 2015 year. We have increased stock numbers for 2013/2014 predicting 360,000kg, 387kg ms/cow, 1,140kg ms/ha for next season for Tumurau Farm. Forestry

Ngāti Awa Group Holdings holds two carbon investments. The first is an investment in carbon credits provided by the Crown as part of its Kyoto commitments and are attached to the forestry land at Rotoehu and Kaingaroa. The second relates to a new plantation on the Ngāti Awa Heritage Estate operated in partnership with CO2 New Zealand. Due to the nature of the two investments, different rules apply to their valuation. The carbon credits attached to the forestry land at Rotoehu and Kaingaroa are revalued at market rates every year. During the 2014 year the market price of carbon has strengthened from $1.82 to $4.05 which has resulted in a write-back of $696,000 in the valuation of the investment that had previously been written down.

Positive, “hands on”, senior management team Ahuwhenua Judges Comment

0%

The carbon credits attached to the CO2 New Zealand investment on the Ngāti Awa Heritage Estate are valued over a longer time frame as Cash Return this is a new plantation. Additional planting and establishment costs of $1m during the 2014 year took the total investment to date to $2.9m. Following an external review of the current market conditions, and the long term forecast of the price of carbon credits, the Board considered that the value of this investment should be written down to $0. We continue to hold the asset and an improvement in the long term carbon price could result in recovering some of this loss.

34 | Te Rūnanga o Ngāti Awa Annual Report 2014

FISH

Fish quota is an intangible asset that provides annual catch entitlements for fish stock species. The asset has an indefinite life, is amortised and tested annually for impairment. This year there was no impairment against this asset. Quota is traded through the Iwi Collective Partnership and Aotearoa Fisheries Ltd. NAGHL also make fish available for tangihanga through the supply of fish to the Ngāti Awa pataka from AFL.

6%

During the 2014 year, the fisheries assets recorded a cash return of Cash Return 6%, compared to 7.2% in 2013.

Overall, our equity portfolios have recorded a cash return of 5.4%, compared to 6.8% in 2013 and an overall return (including capital gains) of 8.2% for the year. The Bond portfolio has maintained its capital value during the year and the cash return on this fixed interest investment is 8.6% compared to 5.9% for 2013. The investment in the Direct Capital IV Private Equity Fund via the Manu Hou Limited Partnership is now 5 years into its 10 year lifecycle. The fund recorded a large return of 47.7% during the year, due to the revaluation of its investment in Scales Corporation. During the year Manu Hou’s investment in Direct Capital increased in value by $2m. This arose primarily due to the increase in the value of the shares held by Direct Capital in Scales Corporation in the lead up its sale through an initial public offering (IPO) in June. Direct Capital, alongside its investment partners the New Zealand Superannuation Fund and ACC, sold 80% of their investment in Scales Corporation in the June IPO and Manu Hou’s proceeds from this sale was realised in July.

PROPERTY

The property portfolio was revalued at year end and resulted in a small write down in the value of the portfolio by $5,000 reflecting the flat property market in Whakatāne. Cash returns on the portfolio improved in 2014 to 3% from 1.6% in 2013.

EQUITY & FIXED INTEREST

We have recorded mixed returns in our equities and fixed interest investments over the year, with strong performances in the JB Were International Portfolio, the Westpac Bond Portfolio, and the Manu Hou investment vehicle being countered with flat returns in the JB Were Australasian Portfolio and the Cleary Wealth Management International portfolio. The JB Were Australasian and International portfolios target a dividend yield of 4.5% to replace the cashflow from term deposit interest, alongside capital gains. During the year these portfolios increased by $1.3m or 10.5%, compared to 16.4% in 2013. The reduced return is due primarily to the slowdown in the Australian economy over the past year, resulting in lower than expected capital gains for the JB Were Australasian portfolio. The process of exiting the Cleary Wealth Management International portfolio has continued during 2014, with realisations of ($1.4m) and a write off of ($288,000) resulting in a remaining investment of $1.1m

As you can see NAGHL has increased its returns again this year and our asset base continues to grow. While we have had some wins there have been losses and the wins far outweigh those. But overall we are heading in the right direction. In closing, an entirely new NAGHL Board from the one I have lead this year will take over the reins of the NAGHL company. I thank the Directors who worked very hard this year to achieve the positive results that have been reported – Graham Pryor, Brian Tunui, Hohepa Mason, Waaka Vercoe all of whom will be replaced at this meeting. I also want to thank and acknowledge our Chief Executive Enid Ratahi-Pryor our first female Chief Executive who has done an outstanding job and her team of committed staff. Having worked for Ngāti Awa longer than I can remember I will take many positive memories away with me during my tenure as the Chair of NAGHL especially my dealings with all the past Directors, Farm Committee members, CEO’s and staff. I will be joining the ranks of our Whakaruruhau Sir Hirini Mead and am looking forward to spending more quality time with my family. I wish the new Directors, the company and our Runanga every success in the future.

Sir Harawira Tiri Gardiner D.C.N.Z.M

Ngāti Awa Group Holdings Chairman

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“An effective equity partnership model enabling smaller trusts to own a share of the business” Ahuwhenua Judges Comment

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38 | Te Rūnanga o Ngāti Awa Annual Report 2014

Te Rūnanga o Ngāti Awa

FINANCIAL STATEMENTS For the year ended 30 June 2014

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Te Rūnanga o Ngāti Awa

Directory of Officers

For the year ended 30 June 2014 Te Rūnanga o Ngāti Awa Representatives M Araroa M Dodd M Hepi A Kohunui J Mason M Glen TK Merito P Ngaropo R O’Brien M Sisley

D Hunia (appointed 8/12/13) K Hunia (appointed 8/12/13) P Koopu (appointed 8/12/13) A Morrison (appointed 8/12/13) S Nicholson (appointed 8/12/13) T O’ Brien (appointed 8/12/13) M Paul (appointed 8/12/13) P Quinn (appointed 8/12/13) S Ratahi (appointed 8/12/13) H Hona (appointed 8/12/13) M Tarau (appointed 8/12/13) M Wahapanga (appointed 8/12/13)

Ngāti Awa Group Holdings Limited Directors

HT Gardiner B Tunui P Quinn (appointed 27/06/2014) J Mason G Pryor (ceased 27/06/2014) TW Vercoe

Ngāti Awa Asset Holdings Limited Directors

HT Gardiner B Tunui TW Vercoe J Mason G Pryor

Ngāti Awa Farms Limited Directors

HT Gardiner D Grant (ceased 22/08/2013) J Mason G Pryor (appointed 5/11/2013) S Read (appointed 17/04/2014) L Stowell W Studer T Vercoe (appointed 5/11/2013)

Ngāti Awa Forests Limited Directors

HT Gardiner J Mason TW Vercoe

44

40 | Te Rūnanga o Ngāti Awa Annual Report 2014

B Aranga (ceased 8/12/13) M Aranga (ceased 8/12/13) C Bluett (ceased 8/12/13) N Brown (ceased 8/12/13) J Harawira (ceased 8/12/13) S Haua (ceased 8/12/13) P Raimona-Salmon (ceased 8/12/13) H Stipich (ceased 8/12/13) T Wharewera (ceased 8/12/13) R Williams (ceased 8/12/13)

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

TR Chapman A Li (appointed 11/10/13) L Rua (appointed 11/10/13) J Dodd P Ngaropo H Wikeepa (appointed 11/10/13)

Te Rūnanga o Ngāti Awa

Directory of Officers

For the year ended 30 June 2014 Trustees

TR Chapman P Ngaropo A Jaram H Mead J Mason

Ngāti Awa Farms (Rangitaiki) Joint Venture Joint Venture Partners

Ngati Awa Farms Limited Putauaki Trust Ihukatia Trust Moerangi Kereua Ratahi Lands Trust Omataroa Rangitaiki No.2 Trust Rangitaiki 31P 3F Trust (also known as Kiwinui Trust)

Management Board Management Board Members Members C Elliot T O’Brien S Ratahi W Studer HT Gardiner (appointed 01/10/2013) J O’Brien LD Stowell TW Vercoe

Manu Hou Limited Partnership Limited Partners

Ngāti Awa Asset Holdings Limited Putauaki Trust Omataroa Rangitaiki No.2 Trust

Manu Hou GP Limited Directors

C Elliott TW Vercoe T Hunia

Tumurau Limited Partnership Limited Partners

Rangitaiki 31P 3F Trust (also known as Kiwinui Trust) Ngāti Awa Farms Limited Moerangi Kereua Ratahi Lands Trust Rotoehu Forest Trust

Tumurau GP Limited Director

HT Gardiner

TRoN TRoN A A

Ngāti Awa Research & Archives Trust

4541

Te Rūnanga o Ngāti Awa

Statements of Comprehensive Income For the year ended 30 June 2014 Note

Group 2014 2013 $000’s $000’s

Parent 2014 2013 $000’s $000’s

Revenue Net financing income Total income

6 7

8,738 459 9,197

6,155 889 7,044

5,712 496 6,208

1,753 496 2,249

Less expenses

8

6,640

5,189

2,368

2,892

(Impairment charge) / writeback of impairment Fair value gain / (loss)

9 10

(280) 3,808

(2,016) 1,219

-

-

6,085

1,058

3,840

(644)

85 6,000

(25) 1,083

3,840

(644)

6,000

1,083

3,840

(644)

3,930 2,070 6,000

754 329 1,083

3,840 3,840

(644) (644)

(351) (351)

41 41

-

-

5,649

1,124

3,840

(644)

3,770 1,879 5,649

626 498 1,124

3,840 3,840

(644) (644)

Profit/(loss) before tax for the year Less tax (credit)/expense Profit/(loss) for the year from continuing operations

11

Profit/(loss) for the year

Attributable to: Equity holders of Te Rūnanga o Ngāti Awa Non-controlling interest

Other Comprehensive Income: Change in fair value of other financial assets designated as available-for-sale Total other comprehensive income/(loss) Total comprehensive income/(loss) for the year Attributable to: Equity holders of Te Rūnanga o Ngāti Awa Non-controlling interest

46

42

12

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

(1)

Te Rūnanga o Ngāti Awa

Statements of Changes in Equity For the year ended 30 June 2014

Group 2014 $000’s

2013 $000’s

2014 $000’s

2013 $000’s

93,912

93,286

79,804

80,448

12

3,930

754

3,840

(644)

12

(160) 129 (31)

(128) (128)

-

-

3,899

626

3,840

(644)

97,811

93,912

83,644

79,804

7,135

5,460

-

-

2,070

329

-

-

Note Equity attributable to equity holders: Equity at the beginning of the year Profit/(Loss) for the year Other comprehensive income: - Revaluation losses - Reclassification of impairment to P&L Total other comprehensive income

Parent

Total comprehensive income/(loss) 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: - Revaluation gains / (loss) - Reclassification of impairment to P&L Total other comprehensive income

12

(191) 45 (146)

169 169

-

-

Total comprehensive income

12

1,924

498

-

-

400 (148) 252

1,400 (150) (73) 1,177

-

-

9,311

7,135

-

-

107,122

101,047

83,644

79,804

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

Non-controlling interest equity at the end of the year

TRoN TRoNAA

Total equity at the end of the year

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

47

43

Te Rūnanga o Ngāti Awa

Statements of Financial Position

As 30year Juneended 201430 June 2014 Forat the Note Reserves Accumulated surplus Non-controlling interest Equity

Group 2014 $000’s

2013 $000’s

Parent 2014 $000’s

2013 $000’s

13 12 12

26,237 71,574 9,311 107,122

26,268 67,644 7,135 101,047

23,907 59,737 83,644

23,907 55,897 79,804

14 15 31 16 17

6,634 2,575 4,011 2,959 77 16,256

8,013 856 2,918 6,217 175 18,179

115 982 354 65 1,516

219 362 354 14 949

17 20 21 22 23 24 24 31

33,460 8,588 781 19,024 41,160 1,767 3,520 108,300

27,383 8,593 812 18,658 39,203 1,030 3,520 99,199

51,931 2,434 23,034 198 7,883 85,480

48,513 2,415 23,317 156 7,898 82,299

124,556

117,378

86,996

83,248

25 26 31

1,676 1,287 -

632 1,303 -

427 139

440 8 473

27

2,786

2,523

2,786

2,523

28

7,226 12,975

6,326 10,784

3,352

3,444

26 28

3,607 852 4,459

3,750 1,797 5,547

-

-

17,434

16,331

3,352

3,444

107,122

101,047

83,644

79,804

This is represented by: What we own: Current assets Cash and cash equivalents Trade and other receivables Owing by subsidiaries Livestock on hand Investments Other assets Non-current assets Investments Investment properties Biological assets Forestry assets Property, plant & equipment Intangible assets Fish quota Owing by subsidiaries Total assets Less what we owe: Current liabilities Trade and other payables Income received in advance Owing to subsidiaries Ngati Hikakino and Ngai Te Rangihouhiri II Hapu Term loans Non-current liabilities Income received in advance Term loans Total liabilities Net assets attributable to equity holders

J Mason

Chairman - 31 October 2014

48

44

EP Ratahi-Pryor

Chief Executive Officer - 31 October 2014

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

Te Rūnanga o Ngāti Awa

Statements of Cash Flows For the year ended 30 June 2014 Note

Cash applied to: Payments to suppliers and employees Grants paid Interest expense paid Income tax paid Net cash (used in)/generated from operating activities 29 Net cash from investing activities Cash provided from: Dividend income received Realisation of bonds Proceeds from the sale of equities Proceeds from sale of other assets Cash applied to: Purchase of dairy farm and livestock Purchase of investments Purchase of CO2 carbon forest Purchase of other non-current assets Purchase of Bonds Net cash (used in)/generated from investing activities Net cash from/(used in) financing activities Cash provided from: Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Loan advanced from subsidiaries Repayment of loans from subsidiaries Capital contribution from non-controlling interest parties Loan advanced from third party Cash applied to: Dividends and distributions paid to non-controlling interest parties Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri Repayment of term loans Net cash generated from financing activities Net (Decrease)/Increase in Cash Balances Cash Balances at the Beginning of the Year Cash Balances at the End of the Year

14

Group 2014 2013 $000’s $000’s 54 396 820 903 4,261 1,167 803 868 1,568 1,469 175 175 7,681 4,978

Parent 2014 2013 $000’s $000’s 220 268 496 496 364 242 66 175 175 1,255 1,247

5,449 241 361 40 6,091

4,733 123 80 158 5,094

2,092 244 2,336

2,228 146 2,374

1,590

(116)

(1,081)

(1,127)

558 2,981 1,316 4,855

995 1,500 4,756 1,623 8,874

826 826

835 835

2,052 1,400 1,039 694 3,000 8,185

11,539 2,568 1,913 252 500 16,772

3 3

47 47

(3,330)

(7,898)

823

788

154 400 554

1,400 6,281 7,681

154 154

473 68 541

148 45 193

223 142 295 660

-

142 142

361

7,021

154

399

(1,379) 8,013 6,634

(993) 9,006 8,013

(104) 219 115

60 159 219

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

49

45

TRoN TRoNAA

Net cash (used in)/from operating activities Cash provided from: Grant and funding income Interest income received Farming operations income Other operating receipts Rental income Maori tax credit refund received

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

Group Parent Net cash (used in)/from operating activities 2014 2013 2014 2013 1 General information Cash provided from: Note $000’s $000’s $000’s $000’s Te Rūnanga o Ngāti Awa ("the Rūnanga") and its subsidiaries (together "the Group") manages the cultural, social, political and economic base of the Ngāti Grant and funding income 54 396 220 268 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 Interest income received 820 903 496 496 established by the Te Rūnanga o Ngāti Awa Act 1988. Farming operations income 4,261 1,167 Other receipts 803 Whakatāne. 868 364 242 The operating Rūnanga is domiciled in New Zealand. The address of the registered office is 10 Louvain Street, Rental income 1,568 1,469 66 The financial statements of the Rūnanga are for the year ended 30 June 2014. The financial statements were authorised for issue by the Chairman and 175 175 175 175 Maori creditOfficer refund received Chieftax Executive on behalf of the Board of Representatives on 31 October 2014. 7,681 4,978 1,255 1,247 Cash applied to: 2 Summary of significant accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements below. These policies have been 2,228 Payments to suppliers and employees 5,449 are set out4,733 2,092 consistently applied to all the years presented, unless otherwise stated. Grants paid 241 123 244 146 Interest expense paid 361 80 a) Basis of preparation The financial statements have been prepared in accordance with generally accepted accounting practice equivalents 40 in New Zealand 158 which is New Zealand Income tax paid to International Financial Reporting Standards ("NZ-IFRS"), and as required by the Charter of Te Rūnanga o Ngāti Awa. 6,091 5,094 2,336 2,374 base in)/generated from operating activities 29 NetStatutory cash (used 1,590 (116) (1,081) (1,127) 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 Netwhose cashprimary from objective investing activities is to provide goods or services for community or social benefit and where any equity has been provided with a view of supporting thatprovided primary objective Cash from:rather than for a financial return to equity holders. Dividend income received 558 995 826 835 The financial statements are presented in New Zealand Dollars (NZD) rounded to the nearest thousand. The measurement base applied is historical cost, Realisation of bonds 2,981 1,500 as modified by the revaluation of certain assets and liabilities as identified in these accounting policies. Proceeds from the sale of equities 1,316 4,756 The Group consists theother Rūnanga and its subsidiaries, associates, and joint ventures as listed in Note - 28, Investments 1,623 in Subsidiaries and - Joint Ventures. Proceeds from saleofof assets Investments in subsidiaries and joint ventures are carried at cost in the Group's financial statements. 4,855 8,874 826 835 Cash applied to: Consolidated Financial Statements Basis of Preparing Purchase of dairy farm and livestock 2,052 11,539 Subsidiaries Purchase of investments 1,400 2,568 Subsidiaries are those entities controlled, directly or indirectly, by the Rūnanga, that is, the Rūnanga has the power to govern the financial and operating Purchase oftheCO2 1,913 policies of entitycarbon so as to forest obtain benefits from their activities. The Rūnanga's consolidated 1,039 subsidiary companies generally have an accompanying shareholding of morenon-current than one half ofassets the voting rights. The Rūnanga's consolidated subsidiary trusts Rūnanga appoints all3the trustees of the Purchase of other 694 are where the252 47 trust and their activities are conducted on behalf of the Rūnanga. The results and financial position of subsidiaries are included in the consolidated 3,000 500 Purchase of Bonds statement of comprehensive income and statement of financial position from the date control is gained up to the date control ceases. 8,185 16,772 3 47 financial statements of subsidiaries are investing included in the consolidated financial statements using the acquisition method. The consideration NetThe cash (used in)/generated from activities (3,330) (7,898) 823 for the

788

Loan advanced from subsidiaries 473 Repayment of loans from subsidiaries 68 Capital contribution from non-controlling interest parties 400 1,400 Joint Venture Receivables - of the joint6,281 - in the Loan from third party Theadvanced joint ventures are established by a contractual agreement. The Rūnanga's share of the net surplus ventures are recognised statements of comprehensive income. The investment held on the statements of financial position reflects the Rūnanga's receivable from 541 the 554 7,681 share of cash154 joint venture. Cash applied to: Dividends and with distributions paidInterests to non-controlling interest parties 148 223 Transactions Non-Controlling The Group treats transactions withHikakino non-controlling interests as transactions with equity owners of the- Group. For purchases interests, Repayment of funds to Ngāti & Ngāi Te Rangihouhiri 142 from non-controlling 142 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. 45 295 Repayment of term loansto non-controlling interests are also recorded in equity. Gains or losses on disposals 193 660 142 Eliminated on financing Consolidation NetTransactions cash generated from activities

361

7,021

154

399

(1,379) 8,013 6,634

(993) 9,006 8,013

(104) 219 115

60 159 219

The effects of intra-group transactions are eliminated in preparing the consolidated financial statements.

Net (Decrease)/Increase in Cash Balances Cash Balances at the Beginning of the Year Cash Balances at the End of the Year

14

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

46 | Te Rūnanga o Ngāti Awa Annual Report 2014

49

TRoN A

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 includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition related costs are expensed as Nettransferred cash from/(used in) financing activities incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at Cash from: theprovided 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 Investments in subsidiaries Cost is Income received on behalf of Ngāti Hikakino & NgāinetTeassets. Rangihouhiri 154 are accounted for-at cost less impairment. 154 adjusted to reflect changes in consideration arising from contingent consideration amendments.

2

Summary of significant accounting policies (continued)

b) Revenue Rental Income Rental income is recognised in the statements 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 statements 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 statements 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 statements of comprehensive income. Farming Operations Income Farming operations income includes dairy income. Income is recognised in the statements of comprehensive income when the revenue associated with the transactions can be measured reliably, or an invoice is raised for the rendering of goods. Goods are recognised when the significant risks and rewards of ownership have been transferred, the Group retains neither involvement nor control over the goods sold, it is probable that economic benefits will flow to the Group and the costs incurred in respect of the transaction can be measured reliably. Dividend Income Investment income includes dividend income and gains and losses arising from changes in the fair value of financial assets held at fair value through profit or loss. Dividend income is recognised in the statements of comprehensive income on the date the Group's right to receive payment is established. Maori Authority Tax Credits The Group has Maori Authority status. Entities in the Group are tax exempt except for Ngati Awa Asset Holdings Limited which has a tax liability of 17.5%. Taxes paid by Ngati Awa Asset Holdings Limited generate Maori Authority Credits, which are tax credits available to pass onto its shareholder. Te Runanga o Ngati Awa recognises a tax receivable from the IRD for the Maori Authority Credits received from Ngati Awa Asset Holdings Limited in the period in which the credits have been distributed. Other Income Other income is recognised in the statements 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 Group retains neither involvement nor control over the goods sold, it is probable that economic benefits will flow to the Group 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 statements of comprehensive income. Financing expenses comprise interest paid on borrowings.

Interest income is recognised in the statements 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 are 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. c) Expenses Operating leases 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 statements of comprehensive income. Lease incentives received are recognised over the term of the lease as an integral part of the total lease payments. d) Taxation Income Tax Income tax on profits for the period relates to current tax. It is recognised in the statements 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 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.

2

47

TRoN A

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).

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

Group Parent Summary of significant accounting policies (continued) Net cash (used in)/from operating activities 2014 2013 2014 2013 Cash provided from: Note $000’s $000’s $000’s $000’s e) Cash and Cash Equivalents Grant and funding income 54 396 220 268 Cash and cash equivalents includes deposits held at call with banks and other short term highly liquid investments. Interest income received 820 903 496 496 4,261 1,167 f)Farming Tradeoperations and otherincome receivables Other operating receipts 803 868 at amortised 364 cost on 242 Trade and other receivables are recognised initially at fair value and subsequently measured an effective interest basis, less provision Rental income debts. Bad debts are written off during the year in which they 1,568 1,469 66 for doubtful are identified. 175 175 175 175 Maori tax credit refund received 7,681 4,978 1,255 1,247 A provision for impairment of trade and other receivables is established when there is objective evidence that the Group will not be able to collect all Cash applieddue to: according to the original terms of receivables. amounts Payments to suppliers and employees 5,449 4,733 2,092 2,228 Grants paid 241 123 244 146 g) Livestock Interest expense paid 361 80 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 and gender. 40 158 Income tax paid 6,091 5,094 2,336 2,374 2

h) Investments Net cash (used in)/generated from operating activities 29 1,590 (116) (1,081) (1,127) Investments 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 Net cash from investing activities investments is reliably measurable where the variability in the range for a reasonable fair value estimate is not significant or probabilities of the various Cash provided from: estimates within the range of fair values can be reasonably assessed and used in estimating fair value. Investments in subsidiaries are carried at cost.

Dividend income received Realisation of bonds Proceeds from the sale of equities i) Investment Properties Proceeds from sale of other assets

558 995 826 835 2,981 1,500 1,316 4,756 1,623 Investment properties are stated at market valuation as determined every year by an independent registered valuer. Any movement on revaluation is 4,855 8,874 826 835 recognised in the statements of comprehensive income. Cash applied to: Purchase of dairy farm and livestock 2,052 11,539 j)Purchase Fish Quota of investments 1,400 2,568 Fish quota shares received fair value at 1,913 the date of settlement carried at cost less Purchase of CO2 carbon forest by way of settlement are recognised at their 1,039 - and subsequently impairment. Fish quota shares have an indefinite life and are therefore not amortised, although they are assessed annually for impairment. Purchase of other non-current assets 694 252 3 47 3,000 500 Purchase of Bonds k) Biological Assets 8,185 16,772 3 47 Farm Woodlot

Woodlot asset represents standing trees at fair value less (3,330) estimated point(7,898) of sale costs. The NetThe cashFarm (used in)/generated from investing activities 823Group obtains 788 an independent valuation of the Farm Woodlot asset every three years. The most recent valuation, dated 30 June 2014, was prepared by PF Olson Limited over the Pine Woodlot. Any

TRoNA

Netmovement cash from/(used in) financing activities in valuation is recognised in the statements of comprehensive income. Cash provided from: Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri 154 154 Loan advanced from subsidiaries 473 CO2 rotation crops Repayment loans from - measured at- fair value less 68 estimated point of sale costs. The CO2ofrotation cropssubsidiaries represents trees planted as part of a harvestable forest. These are Capital contribution from non-controlling interest parties 400 1,400 6,281 Loan advanced from third party l) Forestry Land Assets 554 7,681 154 541 Forestry land assets represent the land assets owned with long term licences to forestry companies. Forestry land assets are stated at fair value as Cash applied to:by an independent registered valuer. Any movement in fair value is recognised in the statements of comprehensive income. determined Dividends and distributions paid to non-controlling interest parties 148 223 Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri 142 142 m) Property, Plant & Equipment 45 295 Repayment of term loans All owned items of property, plant and equipment, except the Ngāti Awa Farm, are recorded at cost less accumulated depreciation and impairment losses. 193 660 142 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

Neteconomic cash generated from financing activities 7,021can be measured 154 reliably.399 benefits associated with the item will flow to the Group and the361 cost of the item

Net (Decrease)/Increase in Cash Balances (1,379) (993) (104) 60 Increases amount arising & equipment are credited to219 asset revaluation 8,013 9,006 159 reserve in equity. Decreases that Cash Balancesinatthe thecarrying Beginning of the Year on revaluation of property, plant offset previous increases same asset are charged revaluation reserves equity, all other Cash Balances at the End of of thethe Year 14 against asset6,634 8,013 directly in 115 219 decreases are charged to the statements of comprehensive income. The accompanying accounting policies and notes form part of the financial statements.

49

Cultural Assets The cultural assets category includes carvings and flax tukutuku, these assets have been recorded at deemed cost. The Mataatua Wharenui is carried at an assigned value on receipt from the Crown plus capital improvements. As cultural assets tend to have an indefinite life and are generally not of a depreciable nature, depreciation is not applicable.

48 | Te Rūnanga o Ngāti Awa Annual Report 2014

3

2

Summary of significant accounting policies (continued)

n) Depreciation Depreciation is recognised in the statements 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 and Cultural Assets are not depreciated. The estimated useful lives for the current and comparative periods are as follows: Buildings Motor Vehicles Office Furniture & Equipment Farm Equipment Cultural Assets

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

years years years years

Depreciation methods, useful lives and residual values are reassessed at every reporting date. o) Financial Assets Classification The Group classifies its financial assets as "at fair value through profit or loss", "loans and receivables", and "other financial assets designated as availablefor-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 Group'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 Group 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 statements of financial position date which are classified as non-current assets. Loans and receivables are included in trade and other receivables and owing by subsidiaries in the statements 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 Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through 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 statements of comprehensive income. Financial assets are de-recognised when rights to receive cash flows from the financial assets have expired or have been transferred and the Group 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 carried at amortised cost. Realised and unrealised gains and losses arising from changes in the fair value of the financial assets are included in the statements 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 the revaluation reserve unless there are permanent impairment losses which are recognised directly in the statements of comprehensive income. When securities are sold or impaired, the accumulated fair value adjustments are included in the statements of other comprehensive income.

TRoN A

The Group 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 and fixed interest 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 statements of comprehensive income) is removed from equity and recognised in the statements of comprehensive income. Impairment losses recognised on equity instruments are not reversed through the statements of comprehensive income.

4

49

Te Rūnanga o Ngāti Awa 2 Summary of significant accounting policies (continued)

Notes to Financial Statements of CashStatements Flows

p) Measurement of Non-financial Assets The carrying amounts of the Group'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 statements of comprehensive income. 2 Summary of significant accounting policies (continued) Group Parent p) Measurement of Non-financial Assets Net cash (used in)/from operating activities 2014 2013 2014 2013 The carrying amounts of the Group's non-financial assets are reviewed at each balance date to determine there any of by impairment. The estimated recoverable amount of assets is the greater value less costs to sell and $000’s value in whether use. $000’s Value in is use is indication determined estimatingIf Cash provided from: Note of their fair$000’s $000’s any such indication exists, the recoverable amount of the asset is estimated. If the estimated recoverable amount of an asset is less than itsreflects carrying 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 current Grant and funding income 54 impairment 396loss is recognised 220 amount, the asset is written down totoitsthe estimated recoverable amount in flows, the 268 statements of comprehensive income. market rates and the risks specific asset. For an asset that doesand not an generate largely independent cash the recoverable amount is determined

For the year ended 30 June 2014

Interest income received 820 903 496 496 for the cash generating unit to which the asset belongs. Farming operations income 4,261 1,167 Other operating receipts 803 868 364 use. Value 242in use is determined by estimating The estimated recoverable amount ofassets assetswhich is theare greater of their fair valueisless costs to sell and value in asset An impairment loss on non-financial carried at fair value, applied to the corresponding revaluation reserve but only to the extent Rental income 1,568 these to1,469 66 discount future cashyear flows fromare theavailable use andto ultimate disposal of the loss. assetAll discounting their present value- using a pre-tax rate that reflects current that prior gains offset the impairment other impairment losses are recognised in profit or loss for the year. 175 175 175 175 Maori tax credit refund received 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 7,681 4,978 1,255 1,247 for the cash generating unit to which the asset belongs. q) Trade andto: other payables Cash applied Trade and other payables are measured initially at fair value and subsequently interest method. Payments to suppliers and employees 5,449 at amortised 4,733 cost using 2,092the effective 2,228 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 Grants paid year gains are available to offset the impairment loss. All other impairment 241 123 are recognised 244 in profit 146 that prior losses or loss for the year. r) Termexpense Loans paid Interest 361 80 Termtax loans Term 158 loans are subsequently stated-at amortised cost. If the Group does 40 Income paidare recognised initially at fair value, net of transaction costs incurred. q) Trade and other payables 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 6,091 5,094 2,336 2,374 Trade and other payables are measured initially at fair value and subsequently at amortised cost using the effective interest method. liability.

Net cash (used in)/generated from operating activities 29 1,590 (116) (1,081) (1,127) r)NetTerm cashLoans from Benefits investing activities s) Employee Term loans are recognised initially at fair value, net of transaction costs incurred. Term loans are subsequently stated at amortised cost. If the Group does Cash providedWages, from: Annual Leave, and Sick Leave Salaries, 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 Dividend income received 558leave and accumulated 995 826leave expected 835 to be settled within twelve months of Liabilities for wages and salaries, including non-monetary benefits, annual sick liability. Realisation bonds 2,981 - and are measured reportingofdate, are recognised in other payables in respect of employees' services up1,500 to the reporting date at the amounts expected to be paidfrom when the liabilities are settled. Liabilities for non-accumulating 1,316 sick leave recognised is taken and Proceeds the sale of equities 4,756 when the leave - measured at the rates paid or s)Proceeds Employee payable. 1,623 fromBenefits sale of other assets Salaries, Wages, Annual Leave, and Sick Leave 4,855 8,874 826 835 Liabilities for and salaries, including non-monetary benefits, annual leave and accumulated sick leave expected to be settled within twelve months of Cash applied to:wages Long Service Leave reporting date, are recognised in other payables in respect of employees' services up to the reporting date at the amounts expected to Purchase of dairy farm and livestock 2,052 11,539 - and are measured Long service leave benefits are accrued in other payables using the present value of net future cash flows. be paidof when the liabilities are settled. Liabilities for non-accumulating sick leave recognised Purchase investments 1,400 2,568 when the leave - is taken and - measured at the rates paid or payable. CO2Services carbon forest 1,039 1,913 t)Purchase Goodsofand Tax Purchase other non-current assetsbeen prepared on a basis exclusive of 694 252 3 These of financial statements have GST with the exception of settlement costs,47 costs directly associated with residential Long Service 3,000 500 basis. Purchase of Bonds property, tradeLeave receivables and trade payables that have been included on a GST inclusive Long service leave benefits are accrued in other payables using the present net future cash flows. 8,185 value of16,772 3 47 u) Intangible assets cash (used in)/generated (3,330) (7,898) 823 788 t)NetGoods andcosts Services Tax from investing activities Software These financial been a basis GST with the exception of settlement costs statements have finitehave useful life.prepared Softwareon costs are exclusive capitalisedofand amortised over a useful economic costs, life of 2costs to 5 directly years. associated with residential NetSoftware cash from/(used in)afinancing activities property, trade receivables and trade payables that have been included on a GST inclusive basis.

TRoNA

Cash provided from: Costs associated with developing or maintaining computer software programs as an 154 expense as incurred. Costs that are directly associated Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri 154 are recognised u) Intangible assets of identifiable and unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs with the production Loan advanced from subsidiaries 473 Software costs beyond one year,from are recognised development employees and an appropriate portion of Repayment of loans subsidiariesas intangible assets. Direct costs include -the costs of software 68 Software costs have a finite useful life. Software costs are capitalised and amortised over a useful economic life of 2 to 5 years. relevant overheads. Capital contribution from non-controlling interest parties 400 1,400 6,281 Loan advanced from third party Costs associated with developing or maintaining computer software programs are recognised as an expense as incurred. Costs that are directly associated 7,681 154 541 Carbon Credits of identifiable and unique software products controlled554 with the production by the Group, and that will probably generate economic benefits exceeding costs Cash applied Intangible assets include carbon credits acquired by way of acosts Government grant andofare initially development recognised atemployees fair value atand thean date of acquisition. Following beyond oneto: year, are recognised as intangible assets. Direct include the costs software appropriate portion of Dividends and distributions paid to non-controlling interest parties 148for impairment 223 annually and-whenever there - is an indication that impairment initial recognition, these intangible assets are carried at cost and are tested relevant overheads. exists. of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri Repayment 142 142 45 295 Repayment of term loans Credits 193 660 142 v) Carbon Comparative amounts 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 intangible assetswith are the carried at cost andpresentation. are tested forReclassifications impairment annually andfair whenever there is an indication that beenrecognition, reclassified these to ensure consistency current year’s include value investment gains/losses andimpairment Netexists. (Decrease)/Increase inwriteback Cash Balances (1,379) (993) (104) 60 impairment/impairment in the statements of comprehensive income. amounts are from the audited financial statements for the year June 2013. Certain in the comparative information have NetComparative cash generated from financing activities 361 ended 30 7,021 154 amounts 399

Cash Balances at the Beginning of the Year

8,013

9,006

219

159

Balances atamounts the End of the Year 14 6,634 8,013 115 219 v)Cash Comparative Comparative amounts are from the audited financial statements for the year ended 30 June 2013. Certain amounts in the comparative information have 49 The accompanying accounting policies andyear’s notespresentation. form part of the financial statements. been reclassified to ensure consistency with the current Reclassifications include fair value investment gains/losses and impairment/impairment writeback in the statements of comprehensive income.

5

50 | Te Rūnanga o Ngāti Awa Annual Report 2014

5

3

New accounting standards and interpretations (i) New and amended standards adopted by the Rūnanga: The group has adopted External Reporting Board Standard A1 Accounting Standards Framework (For-profit Entities Update) (XRB A1). XRB A1 outlines which suite of accounting standards public benefit entities must follow. The group is required to report in accordance with NZ IFRS PBE. There is no impact on the current or prior year financial statements of transitioning to the new Accounting Standards Framework. A new Accounting Standards Framework (incorporating a Tier structure and a separate suite of accounting standards for PBEs) has been issued by the External Reporting Board (XRB). Under the new Accounting Standards Framework the Rūnanga will have to transition to the new Not-for-Profit Public Benefit Entities (NFP PBE) Standards that will be based mainly on International Public Sector Accounting Standards (IPSAS). The effective date for the new NFP PBE Standards is for reporting periods beginning on or after 1 April 2015. Therefore the Rūnanga will have to prepare its financial statements in accordance with the new NFP PBE Standards for the first time for the annual period ending 30 June 2016. The Rūnanga has not been able to determine the impact of this transition as the new NFP PBE Standards are currently being developed by the XRB. Due to the change in the Accounting Standards Framework for PBEs, all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to PBEs as the XRB has effectively frozen the financial reporting requirements for PBEs until PBEs transition to the PBE Standards. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude PBEs from their scope.

(ii) Changes in accounting policies The Rūnanga has not changed accounting policies during the year. Financial Risk Management Financial Risk Factors The Group's activities may expose it to a variety of financial risks: market risk, credit risk, and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group'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 Group 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 Group through a diversified portfolio as outlined in the investment mandate. The Group's equity investments are publicly traded and risk is managed through holding a diversified portfolio of investments. The Group has significant interest bearing assets (term deposits and New Zealand corporate bonds) that are currently exposed to cash flow and fair value interest rate risk where the income, operating cash flows and fair value are dependent on the changes in the market interest rates. The Group holds longterm borrowings which are issued at variable rates. These expose the Group to cash flow interest rate risk. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. The Group manage these risks by placing funds on deposit for various maturities ranging from 30 days to 5 years and holding a diversified portfolio of bonds.

TRoN A

4

6

51

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

Group Parent Financial Risk Management (continued) Net cash (used in)/from operating activities 2014 2013 2014 2013 Credit Risk Cash provided from: Note $000’s $000’s $000’s $000’s 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. Grant and funding income 54 396 220 268 The Group has two concentrations of credit risk as the term deposits are spread across two banks being ANZ Bank Limited and ASB Bank Limited which Interest income received & Poors rating of AA-. The Group is also exposed820 903 496 and it manages this by investing in both have a Standard to credit risk on its corporate496 bond investments, Farming operations 4,261 manages1,167 - placing funds - on deposit with institutions that corporate bonds income with a Standard & Poors rating of at least BBB. The Group its credit risk by only Other operating 803 868 364 242 have a strongreceipts capacity to meet financial commitments. Rental income 1,568 1,469 66 175 175 175 175 Maori taxDeposits credit refund received of Credit of Risk: Term Concentrations 7,681 4,978 1,255 1,247 Group Parent Cash applied to: 2014 2013 2014 2013 Payments to suppliers and employees 5,449 4,733$000's 2,092 $000's 2,228 $000's $000's Grants 241 123 4,433 244 146 ANZpaid Bank Limited 3,930 Interest 361 80 ASB expense Limited paid 256 2,14240 158 4,689 Income tax paid 6,0726,091 5,094 2,336 2,374

4

Risk NetLiquidity cash (used in)/generated from operating activities 29 1,590 (116) (1,081) (1,127) Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of Net cash from investing activities committed credit facilities, and the ability to close out market positions. The Group manages liquidity risk through maintaining flexibility in the funding Cash provided from: available for investing activities and meeting operational expenditure requirements. Dividend income received 558 995 826 835 Realisation of bonds 2,981 1,500 Capital Risk Management Proceeds from the sale of equities 1,316 4,756 The Group net assets capital. The Group's managing capital are to - as its 1,623 - objectives when Proceeds frommanages sale of other assets attributable to nga uri o nga hapu o Ngāti Awa safeguard their ability to continue as a going concern, so it can continue to provide benefits o nga hapu 835 o Ngāti Awa and to maintain an optimal 4,855 8,874 for nga uri 826 capital structure Cash applied to: to reduce the cost of capital. The Group does not have any externally imposed capital requirements. Purchase of dairy farm and livestock 2,052 11,539 Fair Value Estimation Purchase of investments 1,400 2,568 The fairofvalue of financial instruments traded in active markets is based on quoted market of financial position date. The quoted Purchase CO2 carbon forest 1,039 1,913prices at the statement marketofprice used for financial assets held by the Group is based on the694 current bid price. Purchase other non-current assets 252 3 47 3,000 500 Purchase of Bonds The fair value of financial assets that are not traded in an active market is determined by using valuation 8,185 16,772 3 techniques.47The Group 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

Nettocash (used in)/generated from investing activitieswith no quoted market (3,330) determine fair value for the financial instruments price.

(7,898)

823

788

TRoNA

Net cash from/(used in) financing activities The nominalfrom: value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair value of financial Cash provided liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri 154 154 Group for similar financial instruments. Loan advanced from subsidiaries 473 Repayment of loans from subsidiaries 68 5 Critical Accounting Estimates and Judgements Capital contribution from non-controlling interest parties 400 1,400 Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events and 6,281 Loan advanced from third party are believed to be reasonable under the circumstances. 554 7,681 154 541 Cash applied to: The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual Dividends and distributions paid to non-controlling interest parties 148 223 results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri 142 142 the next financial year are discussed below. 45 295 Repayment of term loans 193 660 142 Net cash generated from financing activities Net (Decrease)/Increase in Cash Balances Cash Balances at the Beginning of the Year Cash Balances at the End of the Year

14

361

7,021

154

399

(1,379) 8,013 6,634

(993) 9,006 8,013

(104) 219 115

60 159 219

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

52 | Te Rūnanga o Ngāti Awa Annual Report 2014

7

49

5

Critical Accounting Estimates and Judgements (continued) Impairment The Group tests annually whether an asset is impaired by assessing whether events or circumstances indicate the carrying value may not be recoverable.

CO2 carbon forest The CO2 Carbon Forest represents the CO2 Rotation Crops included within biological assets (see Note 21) and Forest Carbon Sinks included within Property, Plant & Equipment (see Note 23). The CO2 Carbon Forest project relates to management fees paid to CO2 New Zealand Limited Partnership for the establishment and ongoing management of a carbon forest on NgÄ ti Awa Farms land. The carrying value of the project has been determined based on discounted cash flow (DCF) calculations. The determination of the carrying value as at 30 June 2014 is highly judgemental. Key assumptions made include the future price of carbon and the discount rate. The Group has made judgements regarding these assumptions in assessing the carrying value. The price of carbon as at 30 June 2014 is $4.05 per tonne of carbon. The long term price assumed in the DCF calculation is $20.00 per tonne (2013: $37.50 per tonne). In addition to seeking independent external advice, the Board has considered the following in assessing the carrying value of the project: the volatile price of carbon, political uncertainties with respect to the future of the carbon market, the long term investment horizon (approx 50 years), and the other benefits the project provides in terms of reducing the risk of land erosion. Different assessments of these assumptions would result in changes to the carrying value of the project.

A long term price of $50 per tonne would be required for the project to break even and the assumed price of $20 per tonne has resulted in the project being fully impaired. The discount rate applied within the DCF calculation is 8% p.a. Given the significant uncertainties and judgments in respect of this project, there may be further changes in value in future years and these could be significant. These changes may result in further impairments and recognition of an onerous contract or reversals of previously recognised impairments. The Board will continue to evaluate the carrying value of the project based on the best information available. Investment Property The fair value of investment property is determined by independent valuers, key assumptions has been disclosed in note 20. Fair Value of Investments The fair value of investments that are not traded in an active market are determined by using valuation techniques. The Group 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 Group has performed a discounted cash flow analysis for various financial assets that were not traded in active markets, these are included within note 38.

7

Revenue Grant Income Government Grant Income Dividend Income Farming Operations Income Rental Income Maori authority tax credit refund Other Income

Note 24

Net Financing Income Interest Income Total Financing Income

820 820

969 969

Interest Expense Total Financing Expense

361 361

80 80

Net Financing Income

459

889

2014 $000's 44 4,419 30 900 319 5,712

Parent

2013 $000's

386 1,010 66 291 1,753

496 496

496 496

-

-

496

496

TRoN A

6

Group 2014 2013 $000's $000's 86 468 833 1,242 1,170 4,283 1,027 1,695 1,550 900 532 1,107 8,738 6,155

8

53

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

Group Parent Expenses Group Net cash (used in)/from operating activities 2014 2013 2014 2013 2014 2013 Cash provided from: Note $000’s $000’s $000’s $000’s $000's $000's Grant and funding income 54 396 220 268 Administration Fees 213 132 Interest income received 820 903 496 496 Auditors Remuneration (PricewaterhouseCoopers) Farming operations income 4,261 1,167 - Audit Fees 117 100 Other operating receipts 803 868 364 242 - Fees for Other Assurance Services 24 Rental income 1,568 1,469 66 Bad Debts 175 175 175 175 Maori tax credit refund received Board Members Fees and Expenses 404 368 7,681 4,978 1,255 1,247 Consultants Fees - Accounting and Tax 154 80 Cash applied to: - Farm advisory 18 Payments to suppliers and employees 5,449 4,733 2,092 2,228 - Legal 111 152 Grants paid 241 123 244 146 - Projects 138 Interest expense paid 361 80 - Other 333 331 40 158 Income tax paid Depreciation / Amortisation 599 469 6,091 5,094 2,336 2,374 Farming Operations Expenditure 1,314 750

8

Telecommunication Expenses

Travel andto: Accommodation Cash applied Wagesofand Salaries Purchase dairy farm and livestock Other Expenses Purchase of investments Purchase of CO2 carbon forest Purchase of other non-current assets 9Purchase (Impairment) of Bonds/ writeback of impairment

1,590

(116)

558 2,981 1,316 4,855

995 1,500 4,756 1,623 8,874

28 (1,081) 276 4 156 826 188 2 439 28 826 37 1,254 983 6,640 -

(1,127)

2,052 11,539 1,400 2,568 1,039 1,913 694 252 3 3,000 500 During the year the Group recognised the following impairments and write of its assets. 8,185back of impairments 16,772 3

Net cash (used in)/generated from investing activities Net cash from/(used in) financing activities Dairy farm land impairment write back Cash provided from: Carbon credit (impairment) / write back of impairment Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Forest carbon sink and Rotation crops impairment Loan advanced from subsidiaries Fonterra Co-operative Group Limited shares impairment Repayment of loans from subsidiaries Capital contribution from non-controlling interest parties 10 Fair value gain / (loss) Loan advanced from third party

(3,330) Note 23 24 154 21,23

(7,898) 2014

Group

823

$000's 1,767 695 154 (2,136) (606) (280)

198 6 835 120 6 135 24 835 43 1,3097865,189-

47 47

2013788 $000's (1,200) (816) 473 68 (2,016)

400 1,400 6,281 During the year the Group and Parent recognised the following movements in its assets recognised at fair value. 554 7,681 154 541 Cash applied to: Group Dividends and distributions paid to non-controlling interest parties 148 223 2013142 Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri 142 2014 $000's Note 45 295 $000's Repayment of term loans Listed shares 969 1,186 193 660 142

Unlisted shares 2,175 361 7,021 154 Forests revaluation 347 22 farms revaluation 292(104) 21 NetWoodlot (Decrease)/Increase in Cash Balances (1,379) (993) Properties (5)219 20 8,013 9,006 Cash Balances at the Beginning of the Year Livestock 359 115 Cash Balancesmovement at the End of the Year 14 6,634 8,013 Other (329) The accompanying accounting policies and notes form part of the financial statements. 3,808

Net cash generated from financing activities

54 | Te Rūnanga o Ngāti Awa Annual Report 2014

9

569 399 327 194 60 (535) 159 (612) 219 90 491,219

2013 $000's

22 119 179 4 48 149 303 31 279 4 4 38 24 20 19 681 444 2,368

2014 $000's -

TRoNA

asset sale loss NetFixed cash (used in)/generated from operating activities 29 Grants and Sponsorships Net cash from investing activities Installation Costs Cash provided from: Operating Leases Dividend income received Rates Realisation of bonds Rent Proceeds from the sale of equities Repairs & maintenance Proceeds from sale of other assets

Parent 2014 $000's -

2014 $000's -

-

43 334 182 4 43 98 123 323 221 6 6 6 21 16 24 899 543 2,892

Parent

Parent

2013 $000's

2013 $000's

-

-

(1) (1)

11 Tax Expense Reconciliation of the Prima Facie Income Tax Payable on Profit with the Income Tax Expense Charged: Profit/(Loss) before Tax for the Year Exempt Loss from Charitable Activities Taxable Profit/(Loss) before Tax for the Year Income Tax Expense at 17.5% on Taxable Profit, (2013: 17.5%) Non-taxable Income Imputation Credits Prior period adjustment Income Tax (Credit)/Expense

Imputation Credit/Maori Authority Tax Credit Account Imputation credits available to equity holders in subsequent reporting periods

12 Equity Group 30 June 2014 Balance at the Beginning of the Year Profit for the Year Revaluation (Losses) Impairment of available-for-sale investments Dividend declared during the year Contributed equity during the year Balance at the End of the Year

Non-Controlling Interest

Group 2014 2013 $000's $000's 6,085 1,058 (1,887) 2,211 4,198 3,269

2014 $000's 3,840 (3,840) -

Parent

2013 $000's (644) 644 -

735

572

-

-

(537) (113) 85

(368) (160) (69) (25)

-

-

770

911

900

186

Asset Revaluation Reserves

Other Reserves

Accumulated Surplus

Total Equity

$000's 7,135 2,070 (191) 45 (148) 400 9,311

$000's 10,405 (160) 129 10,374

$000's 15,863 15,863

$000's 67,644 3,930 71,574

$000's 101,047 6,000 (351) 174 (148) 400 107,122

5,460 329 169 (150) (73) 1,400 7,135

10,533 (128) 10,405

15,863 15,863

66,890 754 67,644

98,746 1,083 41 (150) (73) 1,400 101,047

30 June 2014 Balance at the Beginning of the Year Loss for the Year Balance at the End of the Year

8,044 8,044

15,863 15,863

55,897 3,840 59,737

79,804 3,840 83,644

30 June 2013 Balance at the Beginning of the Year Loss for the Year Balance at the End of the Year

8,044 8,044

15,863 15,863

56,541 (644) 55,897

80,448 (644) 79,804

30 June 2013 Balance at the Beginning of the Year Profit /(loss) for the Year Revaluation Gains/(Losses) Distribution declared during the year Dividend declared during the year Contributed equity during the year Balance at the End of the Year Parent

TRoN A

The dividends paid in 2014 and 2013 by NgÄ ti Awa Farms (Rangitaiki) Joint Venture were $147,270 ($300 per share) and $72,966 ($148.64 per share) respectively.

10

55

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014 Net cash (used in)/from operating activities Cash provided from: Grant and funding income Interest income received Asset Revaluation Reserves Farming operations income Other Reserves Other operating receipts Rental income Maori tax credit refund received

Note

Reserves are comprised of:

Cash applied to: Group Payments to suppliers and employees Grants paid 30 June 2014 Interest expense paid Aotearoa Fisheries Limited Unlisted Shares Income tax paid

Bonds Portfolio Capital Contributions Buildings from operating activities 29 NetFarm cash Land (usedand in)/generated Shares NetFonterra cash from investing activities Froude Street Cash provided from: Mataatua Wharenui Dividend income received Other Financial Assets Realisation of bonds Te Manuka Tutahi Site) Proceeds from the sale(Telecom of equities

Proceeds from sale of other assets

30applied June 2013 Cash to: Aotearoa Fisheries Unlisted Shares Purchase of dairy farmLimited and livestock Bondsof Portfolio Purchase investments CapitalofContributions Purchase CO2 carbon forest Farm Land andnon-current Buildings assets Purchase of other Fonterra Shares Purchase of Bonds

Froude Street Mataatua Wharenui NetOther cash (used in)/generated from investing activities Financial Assets Te Manuka Tutahi (Telecom Site)

Net cash from/(used in) financing activities Cash provided from: Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Parent Loan advanced from subsidiaries Repayment of loans from subsidiaries 30 June 2014 from non-controlling interest parties Capital contribution Capital Contributions Loan advanced from third party Farm Land and Buildings Froude Street Cash applied to: Mataatua Dividends andWharenui distributions paid to non-controlling interest parties Other Financial Repayment of fundsAssets to Ngāti Hikakino & Ngāi Te Rangihouhiri Te Manuka Tutahi (Telecom Site) Repayment of term loans

Net cash generated from financing activities

Group Parent 2014 2013 2014 2013 Group $000’s $000’s $000’s $000’s 2014 2013 54 396 220 268 $000's $000's 820 903 10,374 496 496 10,405 4,261 1,167 15,863 15,863 803 868 26,237 364 242 26,268 1,568 1,469 66 175 175 175 175 7,681 4,978 1,255 1,247

Asset Revaluation

56 | Te Rūnanga o Ngāti Awa Annual Report 2014

2,082358- 7,459 47 (79)- 47 788 585 10,405

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

2,082 358 12 9,472 (79) 50 13,326 2 1,045 26,268

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

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

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

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

1,590

(116)

(1,081)

558 2,981 1,316 4,855

995 1,500 4,756 1,623 8,874

826 826

2,052 1,400 1,039 694 3,000 8,185

11,539 2,568 1,913 252 500 16,772

3 3

(3,330)

(7,898)

823

154 400 554

1,400 6,281 7,681

154 154

148 45 193

223 142 295 660

-

- 142 5858,044 142

361

7,021

154

399

11

2013 $000's 8,044 15,863 23,907

22 835 - 58510,374-

4,733 123 80 158 5,094

Te Manuka Tutahi (Telecom Site)

Parent

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

5,449 241 361 40 6,091

2,092 2,228 Reserves 244 146 $000's 2,082 226 2,336 2,374 -

30 June 2013 Contributions in Cash Balances NetCapital (Decrease)/Increase (1,379) (993) (104) 8,013 9,006 219 Cash Balances the Beginning of the Year Farm Land at and Buildings Cash Balances at the End of the Year 14 6,634 8,013 115 Froude Street Mataatua Wharenui The accompanying accounting policies and notes form part of the financial statements. Other Financial Assets

2014 $000's 8,044 15,863 23,907

7,459 (1,127)

Total $000's 2,082 226 12 9,472 22 50 13,326 2 1,045 26,237

835

473 68 - 7,459 541

- 60 159 7,459 219 49 -585 8,044

TRoNA

13 Reserves

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

14 Cash and cash equivalents

Group 2014 2013 $000's $000's 1,920 1,932 25 9 4,689 6,072 6,634 8,013

Bank On-Call Deposits Short Term Deposits

15 Trade and other receivables Trade Receivables Less: Provision for doubtful debts Maori authority tax credit GST Receivable Taxation Receivable

544 172 140 856

47 900 35 982

Parent

2013 $000's

219 219

328 (1) 35 362

TRoN A

1,599 900 76 2,575

2014 $000's 115 115

12

57

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014 16 Livestock on Hand

Net cash (used in)/from operating activities Cash provided from: Grant and funding income Interest income received Cattle Farming operations income Sheep Other operating receipts Other Rental income Maori tax credit refund received

Note

Movements are represented as follows:

Cash applied to: Payments to suppliers and employees Balance at the Beginning of the Year Grants paid Increase Due to Acquisitions Interest expense paid Decrease Due to Sales Income tax paid

Increase Due to Births/(Deaths) Change in Fair Value at the End of the Year NetBalance cash (used in)/generated from operating activities 29

Group Parent 2014 2013 2014 2013 Group $000’s $000’s $000’s $000’s 2014 2013 54 396 220 268 $000's $000's 820 903 3,775 496 496 2,722 4,261 1,167 233 193 803 868 364 242 3 3 1,568 1,469 4,011 66 2,918 175 175 175 175 7,681 4,978 1,255 1,247 5,449 241 361 40 6,091

4,733 123 80 158 5,094

2,092

2,918 244 902 (871) 437 2,336 625 4,011 (1,081)

2014 $000's -

2,228

2,446 146 1,419 (1,035) 464 2,374 (376) 2,918 (1,127)

Parent

2013 $000's

-

-

-

25 51,906 51,931

25 48,488 48,513

1,590 (116) Net cash from investing activities Atprovided 30 June 2014, Cash from: livestock held for sale comprised 481 cattle (2013: 378) and 2,035 sheep (2013: 2,062). During the year ended 30 June 2014, the Group sold 93income cattle (2013: 392) and 1,318 sheep (2013: 4,846). Dividend received 558 995 826 835 Realisation of bonds 2,981 1,500 At 30 June dairy cows & 5074,756 heifers) (2013: 1,555 Proceeds from2014, the sale of livestock equities held comprised 1,960 dairy cattle (1,453 1,316 - dairy cattle- (1,098 cows & 457 heifers). During the year ended 1,623 Proceeds from sale30 of June other2014, assetsthe Group sold 316 dairy cattle (2013: 97). 4,855 8,874 826 835 Cash applied to: 17 Investments Purchase of dairy farm and livestock 2,052 11,539 Group Parent Purchase of investments 1,400 2,568 2014 2013 2014 2013 Purchase of assets CO2 carbon forest 1,039 1,913$000's - $000's Current Note $000's $000's Purchase of other non-current assets 694 252 1,823 3 47 - Bonds 3,342 3,000 500 1,136 Purchase Bonds - Unit of Trusts 2,875 8,185 16,772 2,959 3 47 6,217 Net cash (used in)/generated from investing activities Non-current assets

Bonds Net- cash from/(used in) financing activities - Listed Shares Cash provided from: - Unlisted Shares Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri - Listed Shares Were Loan advanced from- JB subsidiaries - Subsidiaries Repayment of loans from subsidiaries - Joint Ventures from non-controlling interest parties Capital contribution - Limited Partnership Loan advanced from third party

(3,330)

18 154

19 400 554

(7,898)

823

788

1,400 6,281 7,681

6,037 3,067 9,512 154 14,110 146 588 33,460 154

4,516 3,730 5,646 12,765 473 - 68 138 588 27,383 541

TRoNA

Cash applied to: The unitand trusts classified paid as a to current asset relate to the parties investment in the Cleary Wealth Management Unit Dividends distributions non-controlling interest 148 223 - Trust. It is -the Group's intention to realise all investments in thetoUnit Trust over the nextTe 12Rangihouhiri months. The amounts realised from the current -valuation, 142 depending on the realised price at the Repayment of funds Ngāti Hikakino & Ngāi - may vary142 date of sale. 45 295 Repayment of term loans 193 660 142

18 in Unlisted Sharesactivities NetInvestments cash generated from financing 361 7,021 154 399 Investment in unlisted shares includes Aotearoa Fisheries Limited shares ("the AFL shares") that were received on 30 March 2006 as part of the settlement Netproceeds (Decrease)/Increase in with Cashthe Balances (1,379) (993)places restrictions (104) in accordance Maori Fisheries Act 2004. The Maori Fisheries Act 2004 on the 60 sale of the AFL shares where the 9,006 The value 219of the AFL 159 Cash Balances thebeBeginning of the Year Mandated Iwi Organisation or8,013 shares can at only sold to either another Te Ohu Kai Moana. shares has been determined using a Cash Balances cash at theflow Endmodel of theusing Year market data and expected 14 6,634The AFL 8,013 115 discounted cash inflows. shares are not actively traded219 and valued using market accepted valuation techniques. The shares have been valued at $2.1 million (2013: $2.1 million). 49 The accompanying accounting policies and notes form part of the financial statements. 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 is valued using market accepted valuation techniques. The Partnership is valued at $6 million (2013: $3.5 million). The Group invested in Wood Engineering Technology Limited. The technology developed by Wood Engineering Technology Limited allows lower value nonstructural log output from Radiata pine plantations, to be manufactured efficiently into engineered wood products. The end product is high value certified structural lumber for the New Zealand and global building industry. The company is not actively traded and is valued at fair market value using market accepted valuation techniques. The shares have been valued at $1.4 million (2013: nil).

58 | Te Rūnanga o Ngāti Awa Annual Report 2014

13

19 Investment in Joint Ventures

Group 2014 2013 $000's $000's 146 138

Mataatua Fisheries Collective Receivable

2014 $000's -

Parent

2013 $000's

-

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

138 8 146

130 8 138

-

-

The Mataatua Fisheries Collective Receivable relates to the monies held on behalf of the Group by the Mataatua Fisheries Collective. The receivable has been included as at the annual balance date of the Mataatua Fisheries Collective of 31 March 2014. 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 Group 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.

20 Investment Properties

Group 2014 2013 $000's $000's 8,588 8,593

Investment Properties

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

8,593 (5) 8,588

9,128 (535) 8,593

2014 $000's -

-

Parent

2013 $000's

-

-

Residential properties on Wairaka and Toroa Streets were independently valued as at 30 June 2014 by Boyes James McKay Limited. The valuation was based on market evidence of transactions for similar properties and direct comparison. Other investment properties were independently valued as at 30 June 2014 by Bay Valuation Services. The valuation used a mixture of market evidence of transactions for similar properties, capitalisation rate and discounted cash flow approaches. The fair value of investment properties were based on a capitalisation rate which ranged from 7.30% to 12% (2013: 6.1% to 7.3%). If investment valuations were to increase or decrease by 5%, the carrying value amount of investment properties would be $429,400 higher, or lower, respectively (2013: $429,650).

TRoN A

All valuations were performed by the same valuers from the 2013 year. All valuers are independent registered valuers not related to the Group. All valuers hold recognised and relevant professional qualifications and have recent experience in the locations of the investment property they have valued.

14

59

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014 20 Investment Properties (continued)

Net cash (used in)/from operating activities Cash provided from: Investment Properties comprise: Grant and funding income Land and Buildings Interest income received 1-3 Toroa Street Farming operations income 5-7 Toroa Street Other operating receipts 9-11 Toroa Street Rental income 13-17 Toroa Street Maori tax credit refund received 64 Wairaka Street

Note

Cash applied to: Payments to suppliers and employees Land Grants paid Wananga O Awanuiarangi Te Whare Interest expense Apanui Schoolpaid Income paid Armytax Hall

Ohope Beach School Ohope Beach Holiday Park Net cash (used in)/generated from operating activities 29 Whakatāne High School (Part) Net cash from investing activities Whakatāne Court House

Cash provided from: Dividend income received Realisation of bonds Total Investment Properties Proceeds from the sale of equities Proceeds from sale of other assets

21 Biological assets

Cash applied to: Purchase of dairy farm and livestock Purchase of investments Pine Woodlot Purchase of CO2 carbon forest CO2 Rotation Purchase of otherCrops non-current assets Purchase of Bonds

Group Parent 2014 2013 2014 2013 Group $000’s $000’s $000’s $000’s 2014 2013 54 396 220 268 $000's $000's 820 903 496 496 320 320 4,261 1,167 435 435 803 868 364 242 210 210 1,568 1,469 66 680 680 175 175 175 175 270 270 7,681 4,978 1,9151,255 1,247 1,915 5,449 241 361 40 6,091

4,733 123 80 158 5,094

1,590

(116)

558 2,981 1,316 4,855

995 1,500 4,756 1,623 8,874

2,052 1,400 1,039 694 3,000 8,185

Woodlot assets

Net cash (used in)/generated from investing activities

(3,330)

2,092

220 244 1,315 1,400 5582,336 830 (1,081) 1,760 590 6,673 8,588

826 826

Group

11,539 2014 2,568$000's 781 1,913 252 781 500 16,772 (7,898)

2014 $000's -

2,228 146 200 1,3251,4002,374 563

Parent

2013 $000's

-

820 1,770 600 6,678

-

-

8,593

-

-

(1,127) 835 835

3 3

2013 $000's 489 323 47 812 -

823

788

2014 $000's -

Parent

2013 $000's

-

47

Movements are represented as follows:

Net cash from/(used in) financing activities Cash provided from: Balance at the Beginning of the year Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Decrease due to harvesting Loan advanced from subsidiaries Revaluation Gains Repayment of loans from subsidiaries Balance at the End of the Year Capital contribution from non-controlling interest parties Loan advanced from third party

489

1,215

-

Balance at the Beginning of the year

NetAdditions cash generated from financing activities during the year

loss (refer in to Cash note 5) NetImpairment (Decrease)/Increase Balances Balance at the EndBeginning of the Year Cash Balances at the of the Year Cash Balances at the End of the Year

14

361

7,021

(1,379) 8,013 6,634

(993) 9,006 8,013

323 626 154 (949) (104) 219

115

399 563 (240) 60 323 159

219

TRoNA

154 154 (920) 473 292 194 68 781 489 400 1,400 6,281 The pine woodlot was independently valued on 30 June 2014 by PF Olson Limited. The basis of the valuations were market value. 554 7,681 154 541 Cash applied to: Rotation crops Dividends and distributions paid to non-controlling interest parties 148 223 Group Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri 142 142 Movements are represented as follows: 2014 2013 2014 45 295 Repayment of term loans $000's $000's $000's 193 660 142 -

-

Parent

2013 $000's

-

Rotation crops relate to Pinus Radiata plantings that will be harvested 30 years after planing. The fair value of the crops have been determined through a The accompanying and notes of theprices financial discounted cash flow model based accounting on forecastpolicies stumpage ratesform and part forecast for statements. carbon credits. The fair49 value as determined by the model resulted in an impairment charge to the Group and Parent of $948,460 (2013: $239,817).

60 | Te Rūnanga o Ngāti Awa Annual Report 2014

15

22 Forestry Land Assets

Group 2014 2013 $000's $000's 19,024 18,658

Forestry land assets

2014 $000's 2,434

Parent

2013 $000's 2,415

Movements are represented as follows: Balance at the Beginning of the Year Revaluation Gains Balance at the End of the Year

18,658 366 19,024

18,173 485 18,658

2,415 19 2,434

2,257 158 2,415

The forestry land assets were independently valued on 30 June 2014 by Telfer Young (Rotorua) 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 7.7% (2013: 7.3%) was used to determine the fair value of forestry land assets. The Group leases forestry land to various counterparties for terms of 35 years and accounts for these as operating leases.

Group 30 June 2014 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Impairment write backs/(losses) Depreciation Balance at the End of the Year Cost or Valuation Accumulated Impairment Losses Accumulated Depreciation Net Book Value

Land $000's Valuation/Cost 20,381 1,178 1,767 -

Buildings $000's Valuation/Cost 7,724 131 (254)

Motor Vehicles $000's Cost 293 65 (7) (59)

Office Equipment & Plant $000's Cost 2,955 179 (269)

Froude Street Rotorua $000's Cost 50 -

23,326

7,601

292

2,865

50

23,326 23,326

8,845 (1,244) 7,601

664 (372) 292

3,999 (117) (1,017) 2,865

50 50

Forest Carbon Sinks $000's Cost 774 413 (1,187) -

Group 30 June 2014 Balance at the Beginning of the Year Additions (Cost) Disposals (NBV) Impairment Losses (refer to note 5) Depreciation Balance at the End of the Year Cost or Valuation Accumulated Impairment Losses Accumulated Depreciation Net Book Value

Cultural Assets $000's Cost 7,026 -

Total $000's 39,203 1,966 (7) 580 (582)

-

7,026

41,160

1,763 (1,763) -

7,026 7,026

45,673 (1,880) (2,633) 41,160

An assessment of the forest carbon sinks indicated an impairment of the asset was necessary due to lower forecast prices for carbon credits. The recoverable amount is based on a discounted cash flow analysis which forecasts future planting costs and forecast prices for carbon credits. The impairment test resulted in the value of the forest carbon sinks being written down by $1,187,686 (FY 2013: $575,710) with a total accumulated impairment of $1,763,396 (FY 2013: $575,710). The assets relate to forests planted to earn future income from carbon credits. During the year, the Group reversed the impairment previously recognised on the dairy farm land. The reversal of $1,766,899 has been recognised in the Statement of Comprehensive Income. The land valuation has been reassessed based on recent dairy farm sale prices in the Bay of Plenty region.

16

61

TRoN A

23 Property, Plant & Equipment

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014 Cash provided from: Group Grant and funding income Interest income received 30 June 2013 Farming operations income Balance at the Other operating receipts Beginning of the Year Rental income Additions (Cost) Maori tax credit refund received

Note

Disposals (NBV) Transferred (to)/from other categories Cash applied to: Impairment Losses Payments to suppliers and employees Depreciation Grants paid Balance at the Interest expense paid End of the Year

Group Parent 2014 2013 2014 2013 $000’s $000’s $000’s $000’s Motor 54 396 220 268 Land Buildings Vehicles 820 903 496 496 $000's $000's $000's 4,261 1,167 Valuation/Cost Valuation/Cost Cost 803 868 364 242 15,001 7,259 145 1,568 1,469 66 5,380 769 189 175 175 175 175 7,681 4,978 1,255 1,247 -

Income tax paid

Cost or Valuation

Impairment Losses NetAccumulated cash (used in)/generated from operating activities 29 Depreciation NetAccumulated cash from investing activities Net Book Value Cash provided from: Dividend income received Realisation of bonds Proceeds from the sale of equities Proceeds from sale of other assets Group

Cash applied to: 30 June Purchase of 2013 dairy farm and livestock Balance the Purchase of at investments Beginning of carbon the Year Purchase of CO2 forest Additions (Cost)non-current assets Purchase of other Disposals (NBV) Purchase of Bonds

Transferred (to)/from other categories Impairment Losses NetDepreciation cash (used in)/generated from investing activities Balance at the Net cash from/(used in) financing activities End of the Year

Cash provided from: Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Cost or Valuation Loan advanced from subsidiaries Accumulated Impairment Losses Repayment of loans from subsidiaries Accumulated Depreciation Capital contribution from non-controlling interest parties Net Book Value Loan advanced from third party Cash applied to: Dividends and distributions paid to non-controlling interest parties Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri Repayment of term loans Net cash generated from financing activities Net (Decrease)/Increase in Cash Balances Cash Balances at the Beginning of the Year Cash Balances at the End of the Year

14

2,092 (304)

5,449 241 361 20,381 40 6,091

4,733 123 80 158 5,094

1,590(1,767)

(116)

8,714 - (1,081) (990) 7,724

558 2,981 1,316 4,855

995 1,500 4,756 1,623 8,874

826 826

2,052 1,400 1,039 694 3,000 8,185

11,539 2,568 1,913 252 500 16,772

3 3

(3,330)

(7,898)

823

22,148

20,381

606

(1,127) (313) 293

835 Forest Carbon 835

Sinks $000's Cost - 1,350 47 - - 47 (576) -788

154 400 554

1,400 6,281 7,681

154 154

1,350 473 (576) 68 774

148 45 193

223 142 295 660

-

142 142

361

7,021

154

399

(1,379) 8,013 6,634

(993) 9,006 8,013

(104) 219 115

60 159 219

17

-

541

49

Froude Street Rotorua $000's Cost

50 -

2,955

50

3,820 (117) (748) 2,955

50 50

Cultural Assets $000's Cost 7,026 -

774

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

62 | Te Rūnanga o Ngāti Awa Annual Report 2014

244 2,336

7,724

-

2,228 (41) 146 293 2,374

Office Equipment & Plant $000's Cost 1,521 1,540 (106)

TRoNA

23 & Equipment NetProperty, cash (usedPlant in)/from operating(continued) activities

Total $000's 31,002 9,228 (576) (451)

7,026

39,203

7,026 7,026

43,714 (2,460) (2,051) 39,203

23 Property, Plant & Equipment (continued) Parent

30 June 2014 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's Valuation/Cost

Buildings $000's Valuation/Cost

Motor Vehicles $000's Cost

Office Equipment & Plant $000's Cost

Froude Street Rotorua $000's Cost

10,155 -

4,663 (119)

12 (8)

1,411 3 (159)

50 -

10,155

4,544

4

1,255

50

10,155 10,155

5,083 (539) 4,544

2,034 (117) (662) 1,255

50 50

Parent

166 (162) 4

Cultural Assets $000's Cost

30 June 2014 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

7,026 -

23,317 3 (286)

7,026

23,034

7,026 7,026

24,514 (117) (1,363) 23,034

TRoN A

Cost Accumulated Impairment Losses Accumulated Depreciation Net Book Value

Total $000's

18

63

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014 23 Property, Plant & Equipment (continued)

Net cash (used in)/from operating activities Cash provided from: Parent Grant and funding income Interest income 30 June 2013received Farming operations Balance at the income Other operatingofreceipts Beginning the Year Rental income Additions (Cost) Maori tax credit refund received Disposals (NBV)

Note

Transferred (to)/from other categories

Cash applied to:Losses Impairment Payments to suppliers and employees Depreciation Grants paid at the Balance Interest paid Endexpense of the Year Income tax paid

Group Parent 2014 2013 2014 2013 Motor $000’s $000’s $000’s $000’s Land Buildings Vehicles 54 396 220 268 $000's $000's $000's 820 903 496 Valuation/Cost Valuation/Cost Cost 496 4,261 1,167 80310,155 868 4,858 364 242 10 1,568 1,469 66 16 13 175 175 175 -175 7,681 4,978 1,247 - 1,255 -

Cost Accumulated Impairment Losses NetAccumulated cash (used in)/generated from operating activities 29 Depreciation NetNet cash fromValue investing activities Book

Cash provided from: Dividend income received Realisation of bonds Proceeds from the sale of equities Proceeds from sale of other assets Parent

Cash applied to: 30 June 2013 Purchase of dairy farm and livestock Balance at the Purchase of investments Beginning of the Year Purchase of CO2 carbon forest Additions (Cost) Purchase of other non-current assets Disposals (NBV) Purchase of Bonds

Transferred (to)/from other categories Impairment Losses NetDepreciation cash (used in)/generated from investing activities Balance at the Net cash from/(used End of the Year in) financing activities

Cash provided from: Income on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Costreceived or Valuation Loan advanced from subsidiaries Accumulated Impairment Losses Repayment of loans from subsidiaries Accumulated Depreciation Capital contribution Net Book Value from non-controlling interest parties Loan advanced from third party

-

5,449 241 36110,155 40 6,091

10,155 1,590 10,155

4,733 123 80 158 5,094

2,092 (211)

244 2,336

4,663

Office Equipment & Plant $000's Cost

-

2,228 (11) 146 122,374

(116)

5,083 (1,081) (420) 4,663

166 (1,127) (154) 12

558 2,981 1,316 4,855

995 1,500 4,756 1,623 8,874

826 826

835 835

2,052 1,400 1,039 694 3,000 8,185

11,539 2,568 1,913 252 500 16,772

3 3

47 47

(3,330)

(7,898)

823

788

154 400 554

1,400 6,281 7,681

154 154

473 68 541

361

7,021

154

399

Froude Street Rotorua $000's Cost

1,475 19 (83)

50 -

1,411

50

2,031 (117) (503) 1,411

50 50

Cultural Assets $000's Cost

Total $000's

7,026 -

23,574 48 (305)

7,026

23,317

7,026 7,026

24,511 (117) (1,077) 23,317

TRoNA

Cash applied to: 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 The farm land nga hapu Ngāti Awa and is to notnon-controlling able to be alienated. net book value of the land is223 $8,350,000 (2013: Dividends andodistributions paid interestThe parties 148 - $8,350,000). Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri 142 142 295 under the Maori - Land Court - ensuring that the land is retained for Repayment of term loans Te Manuka Tutahi land is restricted in use by the land having been vested45to the Rūnanga 193communal use 660 and benefit of- nga uri o 142 the purpose of a meeting place of cultural and historical importance for the nga hapu o Ngāti Awa. The net book the land from is $786,500 (2013: $786,500). Netvalue cash of generated financing activities

Net (Decrease)/Increase in Cash Balances (1,379) (993) (104) 60 The following cultural land assets were received as part of the settlement claim, and previously formed parts of historic, scenic, and recreation reserves (with 8,013 9,006 219 159 Cash Balances at the Beginning of the Year the exception of the former Matahina A4 Block). These land assets were received at no cost. Cash Balances at the End of the Year 14 6,634 8,013 115 219

49approximately) The hectares) accompanying accounting policies and notes form part of the financial statements. Kaputerangi (4.9321 Te Ihukatia (1.1 hectares Te Paripari Pa (1.0451 hectares) Whakapaukorero (30 hectares approximately) Otitapu Pa (6 hectares approximately) Former Matahina A4 Block (4,045 square metres) Te Toangopoto (10 hectares approximately)

64 | Te Rūnanga o Ngāti Awa Annual Report 2014

19

24 Intangible Assets Whakatāne 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 annually for impairment. The recoverable amount of the fish quota has been determined at the cash generating unit associated with the asset. Cash flows have been projected into perpetuity using a long term growth rate of inflation of 2.7% (2013: 1.50%) and discounted using the entity's weighted average cost of capital of 8.1% (2013: 7.0%). The value of the fishing quota is $3,519,524 (2013: $3,519,524).

Management does not expect that a reasonable change in key assumptions would result in a material reduction in the recoverable amount of the fish quota below its carrying amount. Group 2014 2013 $000's $000's 982 1,394 937 785 (1,349) 1,767 982

Carbon Credits

Opening Balance Acquisitions by way of government grant Impairment writeback /(loss) Closing Balance

2014 $000's 108 90 198

Parent

2013 $000's

154 103 (149) 108

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 provided for an allocation of 60 New Zealand carbon units (NZUs) per hectare to be transferred to the Group. Based on this allocation the Group received 538,020 NZUs. The Act provided for the credits to be transferred in two tranches. 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 second tranche of NZUs was recognised by the Group as government grant income in profit or loss in November 2012. This allocation was recognised as a result of the Climate Change Response Amendment Act 2012, which was passed into law on 13 November 2012. This amendment removed the previous uncertainty around the recognition of pre-1990 forestry allocations. Under the ETS the Group 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 Group has no liability for deforestation as at 30 June 2014 (2013: nil). The units were valued at the lower of cost or fair market value of $4.05 per unit on 30 June 2014, resulting in a write back of historical impairment to the Group of $785,000 (2013: impairment of $1,348,949).

TRoN A

The Rotoehu West forest is held by the Rūnanga on behalf of the Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu (note 27). The forest entitles the Hapu to an allocation of 60,373 NZUs. The value of carbon credits held on the Hapu's behalf as at 30 June 2014 is $198,000 (2013: $108,423).

20

65

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014 Net cash (used in)/from operating activities Cash provided from: Computer Software Grant and funding income Parent and Group Interest income received Farming operations 30 June 2014 income Other operating Balance at thereceipts Beginning of the Year Rental income(NBV) Disposals Maori tax credit refund received Amortisation

Note

Balance at the End of the Year

Cash applied to: Payments suppliers and employees Cost orto Valuation Grants paid Accumulated Amortisation Interest expense paid Net Book Value Income tax paid

30 June 2013 Balance at the Beginning of the Year NetAmortisation cash (used in)/generated from operating activities 29 NetBalance cash from investing at the End ofactivities the Year

Cash provided from: Dividend received Cost orincome Valuation Realisation of bonds Accumulated Amortisation Proceeds fromValue the sale of equities Net Book Proceeds from sale of other assets Cash applied 25 Trade andto: other payables

Purchase of dairy farm and livestock Purchase of investments Purchase of CO2 carbon forest Trade Payables Purchase of Expenses other non-current assets Accrued Purchase of Bonds Taxation Payable

Group 2014 2013 $000’s $000’s 54 396 820 903 4,261 1,167 803 868 1,568 1,469 175 175 7,681 4,978 5,449 241 361 40 6,091

4,733 123 80 158 5,094

2,092 244 2,336

2,228 146 2,374

1,590

(116)

(1,081)

(1,127)

558 2,981 1,316 4,855

995 1,500 4,756 1,623 8,874

826 826

835 835

2,052 1,400 1,039 694 3,000 8,185

Net cash (used in)/generated from investing activities

(3,330)

NetIncome cash from/(used financing activities 26 Received in) in Advance

Cash provided from: Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Current liabilities Loan advanced from subsidiaries Forestry rentals Repayment of loans from subsidiaries Access rights Capital contribution from non-controlling interest parties Grants Loan advanced from third party Property Rentals Cash applied to: Dividends and distributions Non-current liabilities paid to non-controlling interest parties Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri Access rights Repayment of term loans

Parent 2014 2013 $000’s $000’s 220 268 496 496 364 242 66 175 175 1,255 1,247

Group

11,539 2014 2,568$000's 1,913 1,020 252 633 500 23 16,772 1,676 (7,898)

3 3

2013 $000's 6847 564 - 47 632

823

788

Group

154 400 554 148 45 193

2014 -$000's 154 837 143 1,400 22 6,281 285 7,681 1,287 154

223 142 295 660

3,607 3,607

-

2013 $000's 473 821 68 143 54285541 1,303

-

142 3,750 3,750142

Cost $000's 48 (31) (17) -

Total $000's

48 (31) (17) -

-

-

66 (18) 48

66 (18) 48

106 (58) 48

106 (58) 48

2014 $000's 59 368 427

2014 $000's -

TRoNA

24 Intangible Assets (continued)

-

Parent

Parent

2013 $000's

2013 $000's

56 384 440

-

-

NetAccess cash generated from 361 received 7,021 154is being amortised 399 rights relate to financing $5 million activities in relation to the Bonisch Road Settlement during 2010. This over 35 years (2013: 35 years), beginning 1 October 2005, which is the period of access rights granted under the settlement.

Net (Decrease)/Increase in Cash Balances Cash Balances at the Beginning of the Year Cash Balances at the End of the Year

14

(1,379) 8,013 6,634

(993) 9,006 8,013

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

66 | Te Rūnanga o Ngāti Awa Annual Report 2014

21

(104) 219 115

60 159 219

49

8 8

27 Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu 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 2014, remaining assets held on behalf of Ngāti Hikakino and Ngai Te Rangihouhiri II Hapu totalled $2.79m (2013: $2.52M). 28 Term Loans

2014 $000's

Current liabilities ANZ mortgage Westpac mortgage Current portion of loan from Housing NZ Corporation

Non-current liabilities Westpac mortgage Loan from Housing NZ Corporation ASB mortgage

Group

2013 $000's

2014 $000's

Parent

2013 $000's

6,281 900 45 7,226

6,281 45 6,326

-

-

-

-

602 250 852

900 647 250 1,797

-

-

Westpac mortgage This loan was raised in June 2010 to purchase a dairy herd and farm plant for Ngāti 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 which are fixed for periods of three months to one year, with the interest rate charged at 5.25% as at 30 June 2014 (2013: 4.80%).

ANZ mortgage This loan was raised during June 2013 to purchase a dairy farm for Tumurau Limited Partnership. The loan is secured by a mortgage over the farm land on Braemar Road, Whakatane. The loan is for 12 months with interest charged on a monthly basis. The interest rate charged is 5.38% as at 30 June 2014 (2013: 4.68%). The loan maturity has subsequently been extended to 20 May 2015. Loan from Housing NZ Corporation This loan was raised to purchase and renovate residential properties at Wairaka, Whakatāne. The loan is for 25 years and is 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 (2013: same).

TRoN A

ASB mortgage This loan was raised to allow the Group 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 5.3% p.a. (2013: 5.30% p.a.). The loan matures on 15 March 2017.

22

67

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

Group Parent 2014 2013 2014 2013 Group $000’s $000’s $000’s $000’s 2014 2013 54 396 220 268 $000's $000's 820 903 6,000 496 496 1,083 4,261 1,167 803 868 364 242 1,568 1,469 66 599 469 175 175 175 175 (833) 7,681 4,978 1,247 - 1,255 -

29 Reconciliation of Surplus to Cash Flow from Operating Activities

Note

Bad Debts Expense

Cash applied to: Other income Payments to suppliers and employees Fixed asset sale loss Grants paid Revaluation losses/(gains) Interest expense paid Impairment loss Income tax paid non-cash dividend Rental income

Net cash (used in)/generated from operating activities 29 Adjust for items classified as Investing or Financing Activities: Net cash from investing activities Payments made on behalf of subsidiaries Cash provided from: Dividends Received Dividend income received Realisation of bonds Proceeds from the sale of equities Add/Less Movements in Working Capital Proceeds from sale of other assets (Increase)/Decrease in Trade and Other Receivables (Increase)/Decrease in Other Assets Cash applied to: (Decrease)/Increase in Trade and Other Payables Purchase of dairy farm and livestock (Decrease)/Increase in Income Received in Advance

Purchase of investments Purchase of CO2 carbon forest Purchase of other non-current assets Net Cash (Used in)/From Operating Activities Purchase of Bonds

Net cash (used in)/generated from investing activities Net cash from/(used in) financing activities Cash provided from: Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Loan advanced from subsidiaries Repayment of loans from subsidiaries Capital contribution from non-controlling interest parties Loan advanced from third party Cash applied to: Dividends and distributions paid to non-controlling interest parties Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri Repayment of term loans Net cash generated from financing activities Net (Decrease)/Increase in Cash Balances Cash Balances at the Beginning of the Year Cash Balances at the End of the Year

14

-

Parent

2013 $000's (644)

303 119 31 (3,418) (2,965)

323 334 1 658

5,449 241 361 40 6,091

4,733 282,092 123 (3,808) 244 80 280 158 5,094 2,336 (143)

2,228 146 (1,219) 2,016 - 2,374 (143)

1,590

(116)

(1,081)

(1,127)

(1,242) 826 (1,242)

(1,170) 835 (1,170)

(446) (826) (1,272)

(835) (835)

(96) (328) (122) (680)

(612) (51) (13) (8) (684)

(44) (5) (139) (118) (306)

(667)

(1,081)

(1,127)

558 2,981 1,316 4,855

(3,044)

995 1,500 4,756 1,623 (1,282) 8,874 826 98 1,044 16 (124)

(134) 835

11,539 2,568 1,913 252 500 16,772

(3,330)

(7,898)

823

788

154 400 554

1,400 6,281 7,681

154 154

473 68 541

148 45 193

223 142 295 660

-

142 142

361

7,021

154

399

(1,379) 8,013 6,634

(993) 9,006 8,013

(104) 219 115

60 159 219

1,590

23

3 3

100

2,052 1,400 1,039 694 3,000 8,185

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

68 | Te Rūnanga o Ngāti Awa Annual Report 2014

(190)

2014 $000's 3,840

47 47

49

TRoNA

Net cash (used in)/from operating activities Cash provided from: Grant and funding income Interest income before received Profit/(Loss) tax for the Year Farming operations income Other operating receipts Items Adjust for Non-Cash Rental income / Amortisation Depreciation Maori tax credit grant refund received Government income

30 Investments in Subsidiaries and Joint Ventures

Name

Class of Share

Subsidiaries Ngāti Awa Group Holdings Limited

Ordinary

Ownership Interest Held 30 June 30 June 2014 2013 100%

100%

Balance Date

Principal Activity

30 June

Commercial Assets Administration

Ngāti Awa Asset Holdings Limited

Ordinary

100%

100%

30 June

Fisheries Investment

Ngāti Awa Farms Limited

Ordinary

100%

100%

30 June

Drystock Farming

Ngāti Awa Farms (Rangitaiki) Limited

Ordinary

100%

100%

30 June

Non-Trading

Ngāti Awa Fisheries Limited

Ordinary

100%

100%

30 June

Fish Quota Leasing

Ngāti Awa Fish Quota Holdings Limited

Ordinary

100%

100%

30 June

Non-Trading

Ngāti Awa Forests Limited

Ordinary

100%

100%

30 June

Forest Land Leasing

Ngāti Awa Investments Limited

Ordinary

100%

100%

30 June

Investment

Ngāti Awa Properties Limited

Ordinary

100%

100%

30 June

Property Leasing

Ngāti Awa Research & Archives Trust

-

100%

100%

30 June

Research

The Ngāti Awa Community Development Trust

-

100%

100%

30 June

Social Services

Manu Hou GP Limited

Ordinary

100%

100%

30 June

General Partner of Manu Hou LP

Ngāti Awa Iwi Savings Limited

Ordinary

100%

100%

30 June

Non-Trading

Manu Hou Limited Partnership

-

70%

70%

30 June

Capital Investments

Ngāti Awa Farms (Rangitaiki) Joint Venture

-

51%

51%

30 June

Dairy Farming

Ordinary

100%

100%

30 June

General Partner of Tumurau Limited Partnership

-

68%

75%

30 June

Dairy Farming

-

16%

16%

31 March

Fish Quota Leasing

Ordinary

16%

16%

31 March

Fish Quota Leasing

Tumurau GP Limited

Tumurau Limited Partnership

Mataatua Fisheries Collective Mataatua Quota ACE Holdings Limited

TRoN A

Joint Ventures

24

69

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

Group 2014 2013 Note $000’s $000’s 54 396 820 903 4,261 1,167 803 868 - Ngāti Awa Asset Holdings Limited 1,568 1,469 175 175 7,681 4,978

31 Related Party Transactions Net cash (used in)/from operating activities Balances with Subsidiaries are held as follows:

Cash provided from: Grant and funding income Interest incomeofreceived Statement Financial Position Farming operations Current Assets income Other operating receipts Owing by Subsidiaries Rental income Maori tax credit refund received Non-Current Assets Loans Owing by Subsidiaries

Cash applied to: Payments to suppliers and employees Grants paid Current Liabilities Interest expense paid Owing to Subsidiaries Income tax paid

- Ngāti Awa Asset Holdings Limited

5,449 241 361 - Ngāti Awa Group Holdings Limited 40 6,091

4,733 123 80 158 5,094

Parent 2014 2013 $000’s $000’s 220 268 496 496 364 242 66 175 175 1,255 1,247 2,092 244 2,336

2014 $000's

2,228 146 2,374

Parent

2013 $000's

354 354

354 354

7,883 7,883

7,898 7,898

139

473

The current account accounts with subsidiaries are unsecured and repayable on demand. On 1 October 2007 a loan was advanced to Ngāti Awa Asset

Farm Lease Income

- Ngāti Awa Group Holdings Limited

NetInterest cash (used in)/generated from investing activities - Ngāti Awa Asset Holdings(3,330) Limited

(7,898)

823

788

1,400 6,281 7,681

154 154

473 68 541

223 142 295 660

-

142 142

361

7,021

154

399

(1,379) 8,013 6,634

(993) 9,006 8,013

(104) 219 115

60 159 219

Net cash from/(used in) financing activities Cash provided from: Payments Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri 154 Radio Stationfrom Funding - Ngāti Awa Properties Limited Loan advanced subsidiaries Repayment of loans from subsidiaries Capital contribution from non-controlling interest parties 400 Loan advanced from third party 554 Cash applied to: Dividends and distributions paid to non-controlling interest parties 148 Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri 45 Repayment of term loans 193 Net cash generated from financing activities Net (Decrease)/Increase in Cash Balances Cash Balances at the Beginning of the Year Cash Balances at the End of the Year

14

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

70 | Te Rūnanga o Ngāti Awa Annual Report 2014

25

49

TRoNA

Limited. This loanfrom is repayable onactivities 30 September at the prescribed Revenue Department rate for low-interest NetHoldings cash (used in)/generated operating 29 2017 and interest 1,590 is received (116) (1,081) Inland(1,127) 5.90% p.a. asactivities at 30 June 2014 (2013: 5.90% p.a.). Netloans cash of from investing Cash provided from: The Rūnanga determined that the balances owed by the Ngāti Awa Development Trust995 and the Ngāti826 Awa Research Dividend income received 558 835& Archives Trust were no longer recoverable. As a result, balances owed of $119,000 have been fully written 334,000). Realisation of bonds 2,981 off (2013: 1,500 Proceeds from the sale of equities 1,316 4,756 Receipts and Payments with Subsidiaries 1,623 Proceeds from sale of other assets 4,855 8,874 826 835 Parent Cash applied to: 2014 2013 Purchase of dairy farm and livestock 2,052 11,539 Receipts $000's $000's Purchase of investments 2,568 Administration Fees Income - Ngāti Awa Farms Limited 1,400 39 39 Purchase of CO2 carbon forest 1,039 - Ngāti Awa Farms (Rangitaiki) Joint Venture1,913 39 39 Purchase of other non-current assets 694 252 3 47 - Ngāti Awa Group Holdings Limited 27 27 3,000 500 Purchase of Bonds - Ngāti Awa Properties Limited 39 39 8,185 16,772 3 47 - Tumurau Limited Partnership 39 3 30 490 703

66 490 703

30 30

30 30

31 Related Party Transactions (continued) Payments to Consultants who are Board Members Payments to Board Members under the Rūnanga 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 2014 and 30 June 2013 the following professional fees were paid to Board Members:

Board Member Mr C Bluett Ms M Dodd Mr C Elliott Ms E Ratahi-Pryor Mr G Pryor Mr J Mason

Mr P Ngaropo

Ms R O'Brien

Group 2014 2013 $000's $000's 32 34 5

Nature of fees Rūnanga contractor Member of the Executive Committee Member of Ngakauroa Board and of the Audit Committee Director of Ngāti Awa Group Holdings Limited 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

2014 $000's 32 -

Parent

2013 $000's

34 5

-

3

-

-

6

-

-

57

79

-

-

35

61

45

38

-

3

-

-

169

229

3

35

35

-

3

67

80

Board Members were paid $100,000 in meeting fees for the year ended 30 June 2014 (2013: $97,560), which includes the Chairman's and Deputy Chairman's honorarium payments. Indemnity insurance of $15,203 (2013: $13,220) was paid on behalf of the Board Members.

2014 $000's

Payments to the Chairman of the Board Fees Paid to J Mason Fees Paid to TK Merito

-

Group

35

2013 $000's 45

2014 $000's -

Parent

35

2013 $000's

45

TRoN A

Payments to Key Management Personnel Key management personnel, their direct reports and director costs are $378,000 (2013: $310,832) for the Group.

26

71

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

32 Operating Lease Commitments Net cash (used in)/from operating activities Non-cancellable operating lease rentals are payable as follows:

Cash provided from: Grant and funding income Interest income received Commitments Due Farming operations - within 1 year income Other - inoperating 1 year to receipts 2 years Rental - inincome 2 years to 5 years Maori tax credit received - greater thanrefund 5 years

Note

Group Parent 2014 2013 2014 2013 $000’s $000’s $000’s $000’s Group 54 396 2014 220 268 2013 820 903$000's 496 $000's496 4,261 1,167 186 75803 868 242 186 364 60 1,568 1,469 66 433 147 175 175 175 22 175 46 7,681 4,978 1,247 8271,255 328

2014 $000's -

Parent

2013 $000's

Cash applied to: Payments to suppliers and employees 5,449 4,733 2,092 2,228 Non-cancellable operating lease rentals are receivable as follows. These relate to operating lease rentals on investment properties and forestry land. Grants paid 241 123 244 146 Interest expense paid 361 80 40 158 Income tax paid 6,091 5,094 2,336 2,374 Group Parent Net cash (used in)/generated from operating activities 29 Commitments Due Net cash from investing activities - within 1 year Cash provided from: - in 1 year to 2 years Dividend income received - in 2 years to 5 years Realisation of bonds - greater than 5 years Proceeds from the sale of equities Proceeds from sale of other assets Cash applied to:

1,590 558 2,981 1,316 4,855

2014 (1,081) $000's 1,373 1,373 995 826 4,119 1,500 39,415 4,756 46,280

(116)

1,623 8,874

826

2013 (1,127) $000's 1,354 1,354 835 4,061 40,151 46,920

835

2014 $000's 30 30 90 90 240

2013 $000's

-

66 66 197 328 657

33 CapitalofCommitments Purchase dairy farm and livestock 2,052 11,539 The Group entered into a heads of agreement with CO2 New Zealand1,400 Limited Partnership Purchase of investments 2,568 on 20 October - 2011 as part - of a carbon sequestration project. As part of of this agreement and along with the subsequent Carbon Sequestration entered Purchase CO2 carbon forest 1,039 Management 1,913 Services agreement - into in July 2012 and variation agreement in January 2013 and May of 2014, the Group has committed capital expenditure of $3,591,927 (2013: $3,186,177) through to 2017. As at 30 Purchase of other non-current assets 694 252 3 47 June 2014, payment of $2,900,689 (2013: 1,912,527) has been made. The agreement includes ongoing annual management fees between $70,980 3,000 500 Purchase of Bonds $198,835 for 2018 to 2062.

Net cash (used in)/generated from investing activities

8,185

16,772

3

47

(3,330)

(7,898)

823

788

The Group has committed capital to Cleary Wealth Management, remaining capital commitment as at 30 June 2014 is USD$323,485 (2013:

TRoNA

NetUSD$377,231). cash from/(used in) financing activities Cash provided from: Manureceived Hou Limited Partnership committed of $5 million to Direct 2014 $2,639,939- has been called (2013: $1,765,068). Income on behalf of Ngātihas Hikakino & Ngāicapital Te Rangihouhiri 154Capital IV. As -at 30 June 154 Loan advanced from subsidiaries 473 The Group other capital commitments as at 30 June 2014 (2013: Nil). Repayment of has loansnofrom subsidiaries 68 Capital contribution from non-controlling interest parties 400 1,400 6,281 Loan advanced from third party 554 7,681 154 541 34 Contingent Cash applied to:Assets and Liabilities Dividends and distributions paid to non-controlling interest parties 148 223 Contingent Liabilities Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri 142 142 The Group relation to Whakatane High School and Apanui 295 - School for rent dating back to April Repayment of was terminvolved loans in a rent dispute with the Ministry of Education in45 2010. Rent is determined on a percentage of the property's valuation provided valuers - -Bay Valuation 193 by the Group's 660 142 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. During

Net2013, cash generated activities 7,021 399expected value provided by Bay Whakatanefrom Highfinancing School went into arbitration with the value being 361 determined by the arbitrator 154 being under the

Services. Asin a Cash result,Balances management refunded the additional(1,379) rental amount for the affected(104) periods for Whakatane High School. NetValuation (Decrease)/Increase (993) 60 8,013 9,006 219 159 Cash Balances at the Beginning of the Year AsBalances of 30 June Apanui arbitration. Management refunded in the event of a negotiated Cash at 2014, the End of theSchool Year has not gone into 14 6,634 has accrued 8,013 the expected 115 rent to be 219 settlement based on the arbitrator's decision for Whakatane High School.

The accompanying accounting policies and notes form part of the financial statements. The Group had no other contingent liabilities as at 30 June 2014 (2013: Nil).

72 | Te Rūnanga o Ngāti Awa Annual Report 2014

27

49

35 Financial Assets and Liabilities The table below analyses the financial assets and liabilities by class and category, consistent with the RĹŤnanga and Group's accounting policies.

Group 30 June 2014 Assets per Statement of Financial Position Other Investments Trade and other receivables Cash and Cash Equivalents

Loans and Receivables $000's 1,599 6,634 8,233

Assets at Fair Value through Profit or Loss $000's 22,843 22,843

Liabilities per Statement of Financial Position Term Loans Trade and other payables

Available for Sale $000's 13,430 13,430

Carrying Value Total $000's 36,273 1,599 6,634 44,506

Fair Value Total $000's 36,273 1,599 6,634 44,506

Other financial liabilities at amortised cost $000's 8,078 1,653 9,731

Carrying Value Total $000's 8,078 1,653 9,731

Fair Value Total $000's 8,078 1,653 9,731

Available for Sale $000's 14,081 14,081

Carrying Value Total $000's 33,462 544 8,013 42,019

Fair Value Total $000's 33,462 544 8,013 42,019

Other financial liabilities at amortised cost $000's 8,123 632 8,755

Carrying Value Total $000's 8,123 632 8,755

Fair Value Total $000's 8,123 632 8,755

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

30 June 2013 Assets per Statement of Financial Position Other Investments Trade and other receivables Cash and Cash Equivalents

Loans and Receivables $000's 544 8,013 8,557

TRoN A

Liabilities per Statement of Financial Position Term Loans Trade and other payables

Assets at Fair Value through Profit or Loss $000's 19,381 19,381

28

73

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

Group

Parent

35 Financial Assets and Liabilities (continued) Net cash (used in)/from operating activities 2014 2013 2014 2013 The table below analyses the financial assets and liabilities by class and category, consistent with the Rūnanga and Group's accounting policies.

Note

Trade and other receivables

Cash applied to: Owing by Subsidiaries Payments to suppliers andat employees Other Financial Assets Fair Value Grants paid Profit or Loss through Interest paid Cashexpense and Cash Equivalents Income tax paid

$000’s $000’s $000’s $000’s 54 396 220 268 820 903 496 Assets at 496 4,261 1,167 Fair Value 803 868through 364 Available 242 Loans and 1,568 1,469 Receivables Profit or Loss - for Sale66 175 175$000's 175 $000's175 $000's 7,681 47 4,978 1,247 - 1,255 8,237

Net cash (used in)/generated from operating activities 29 Net cash from investing activities Cash provided from: Dividend income received Realisation of bonds Liabilities per Statement of Financial Position Proceeds from the sale of equities Trade and other payables Proceeds from sale of other assets

Assets per Statement of Financial Position

4,733 123 80 158 5,094

1,590

(116)

558 2,981 1,316 4,855

Owing to subsidiaries

Cash applied to: Purchase of dairy farm and livestock Purchase of investments Purchase of CO2 carbon forest Purchase of other non-current assets 30 June Purchase of 2013 Bonds

5,449 241 361 115 408,399 6,091

Owing by Subsidiaries NetOther cash from/(used in) financing activities Financial Assets at Fair Value Cashthrough provided from: Profit or Loss Income onEquivalents behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Cashreceived and Cash

Loan advanced from subsidiaries Repayment of loans from subsidiaries Capital contribution from non-controlling interest parties Loan advanced from third party

Cash applied to: Dividends and distributions paid to non-controlling interest parties Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri Liabilities per Statement of Financial Position Repayment of term loans

$000's

8,252 -

154 219 -8,798 400 554

Other (1,127) financial liabilities at amortised 826 835 cost $000's 427 139 826 835 566

1,400 6,281 7,681

7,021

Net (Decrease)/Increase in Cash Balances (1,379) There are no financial that are past due or impaired. 8,013 Cash Balances atmaterial the Beginning of assets the Year Cash Balances at the End of the Year 14 6,634

(993) 9,006 8,013

47 8,237 25 115 8,424

Carrying Value Total $000's 427 139 566

Fair Value Total $000's

Fair Value Total $000's

Fair Value Total $000's

823

$000's -788 -

25 154 25

- -473

liabilities at amortised cost 142 $000's 440 142 473 154 399 913

Carrying Value Total $000's 440 473 913

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

29

25 115 8,424

Carrying Value Total $000's 327 8,252 25 219 8,823

$000's -

361

74 | Te Rūnanga o Ngāti Awa Annual Report 2014

2,228 -146 - - 2,374

Fair Value Total $000's

(1,081)

(3,330) 327 (7,898)

223 142 295 660

Net cash generated from financing activities

2,336

-

11,539 2,568 Assets at 1,913 Fair Value 252 3 47 500through - Available Profit or Loss 3 for Sale47 16,772

148 45 193

Trade and other payables Owing to subsidiaries

2,092

25 244 25

995 1,500 4,756 1,623 8,874

2,052 1,400 1,039 694 Loans and 3,000 Receivables 8,185

and other receivablesfrom investing activities NetTrade cash (used in)/generated

-

Carrying Value Total $000's 47 8,237

68 Other financial 154 541

(104) 219 115

60 159 219

49

TRoNA

Cash provided from: Grant and funding income Interest income received Parent Farming operations income Other operating 30 June 2014receipts Rental income Maori tax credit refund received Assets per Statement of Financial Position

427 139 566

327 8,252 25 219 8,823

440 473 913

36 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 2014 Term Loans Trade and other payables

Less than 1 year $000's 7,592 1,653 9,245

Between 1 and 2 years $000's 58 58

Between 2 and 5 years $000's 440 440

Over 5 years $000's 377 377

Total $000's 8,467 1,653 10,120

6,658 632 7,290

1,033 1,033

543 543

764 764

8,998 632 9,630

30 June 2013 Term Loans Trade and other payables

Parent

30 June 2014 Trade and other payables Owing by subsidiaries

Less than 1 year $000's 427 139 566

30 June 2013 Trade and other payables Owing by subsidiaries

-

Between 2 and 5 years $000's -

-

Over 5 years $000's -

-

Total $000's

427 139 566

440 473 913

TRoN A

440 473 913

Between 1 and 2 years $000's -

30

75

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

Group

Parent

37 Sensitivity Analysis Net cash (used in)/from operating activities 2014 2013 2014 2013 The table below summarises the impact on profit before tax and net assets attributable to equity should interest rates and other price risks move by the Cash provided from: Note $000’s $000’s $000’s $000’s percentages incorporated in the table and assuming all other variables remain constant.

54 820 4,261 803 Cash 1,568 and Cash 175 Equivalents 7,681

30 June 2014

$000's 6,634

Cash applied to: Carrying Amount Payments to suppliers and employees Grants paid Interest Rate Risk Interest expense paid -1% Profit Income tax paid

Equity 1% Profit Equity Net cash (used in)/generated from operating activities 29 Price investing Risk NetOther cash from activities Cash provided from: -10% Profit Dividend income received Equity Realisation of bonds 10% Profit Equity Proceeds from the sale of equities

Cash applied to: Purchase of dairy farm and livestock Purchase of investments Purchase of CO2 carbon forest 30 June Purchase of 2013 other non-current assets Carrying Purchase of Amount Bonds

5,449 241 361 40 6,091

4,733 123 80 (66) 158 (66) 5,094

1,590

(116)

558 2,981 1,316 4,855

Proceeds from sale of other assets

66 66

-

$000's 1,599

2,092 244 2,336 -(1,081) -

- 826 995 1,500 4,756 1,623 Financial 8,874 Assets 826

Cash 2,052 11,539 Trade and Cash and Other 1,400 2,568 Equivalents Receivables 1,039 1,913 $000's 694 252 $000's 544 3,000 8,013 500

Interest Rate Risk

Net cash (used in)/generated from investing activities -1% Profit

8,185

16,772

(3,330)

(80) (7,898) (80) 80 80

-

-

-

Equity

Net cash from/(used in) financing activities 1% Profit Cash provided from: Equity Income received on behalf of Ngāti Hikakino & Ngāi Te Rangihouhiri Other Price Risk Loan advanced from subsidiaries -10% Profit Repayment of loans from subsidiaries Equity Capital contribution from non-controlling interest parties 10% Profit Loan advanced from third party Equity

Cash applied to: Dividends and distributions paid to non-controlling interest parties Repayment of funds to Ngāti Hikakino & Ngāi Te Rangihouhiri Repayment of term loans Net cash generated from financing activities Net (Decrease)/Increase in Cash Balances Cash Balances at the Beginning of the Year Cash Balances at the End of the Year

396 220 268 903 496 496 1,167 868 364 242 Trade 1,469 66 and Other 175 175 175 Receivables Investments 4,978 1,255 1,247

Financial Assets

14

154 400 554

1,400 6,281 7,681

2,228 146 79 2,374

(79) (1,127) (2,736) (2,841) 835 2,4692,574-

-

-

-

835

823

Financial Liabilities Trade and Other Payables $000's 632

Term Loans $000's 8,123

788 116 (112)

-

74 74 (74) (74)

(1,582) 68 (1,937) 1,582 1,937

-

-

473

541

223 142 295 660

-

142 142

361

7,021

154

399

(1,379) 8,013 6,634

(993) 9,006 8,013

(104) 219 115

60 159 219

31

Term Loans $000's 8,078

74 74 (74) (74)

- Investments$000's 47 3 32,8743 47

154 154

Trade and Other Payables $000's 1,653

-

148 45 193

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

76 | Te Rūnanga o Ngāti Awa Annual Report 2014

$000's 36,273

Financial Liabilities

49

TRoNA

Grant and funding income Interest income received Group Farming operations income Other operating receipts Rental income Maori tax credit refund received

37 Sensitivity Analysis (continued) Parent

Financial Assets Cash and Cash Equivalents $000's 115

30 June 2014 Carrying Amount

Trade and Other Receivables $000's 47

Financial Liabilities

Investments $000's 25

Owing by Subsidiaries $000's 8,237

Trade and Other Payables $000's 427

Owing to Subsidiaries $000's 139

Interest Rate Risk -1% Profit Equity 1% Profit Equity

(1) (1) 1 1

-

-

(82) (82) 82 82

-

-

-

-

-

-

-

Other Price Risk -10% Profit Equity 10% Profit Equity

-

Financial Assets Cash and Cash Equivalents $000's 219

30 June 2013 Carrying Amount

Trade and Other Receivables $000's 328

Financial Liabilities

Investments $000's 25

Owing by Subsidiaries $000's 8,252

Trade and Other Payables $000's 440

Owing to Subsidiaries $000's 473

Interest Rate Risk -1% Profit Equity 1% Profit Equity

(2) (2) 2 2

-

-

(83) (83) 83 83

-

-

-

-

-

-

-

Other Price Risk -

TRoN A

-10% Profit Equity 10% Profit Equity

32

77

Te Rūnanga o Ngāti Awa

Notes to Financial Statements of CashStatements Flows For the year ended 30 June 2014

Group

Parent

38 Fair Value Estimation Net cash (used in)/from operating activities 2014 2013 2014 2013 The parent and group use the following hierarchy for determining and disclosing the fair value of instruments by valuation technique:

Cash provided from: Note $000’s $000’s $000’s $000’s Grant and funding income 54 396 220 268 - Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; Interest income received 820 903 496 496 - Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., Farming operations income 4,261 1,167 derived from prices); and Other operating receipts 803 868 364 242 - Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Rental income 1,568 1,469 66 175 175 175 175 Maori tax credit refund received 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. 7,681 4,978 1,255 1,247 Cash applied to: The following table presents financial assets and liabilities measured at fair value in the Statement of Financial Position as at 30 June 2014 for the group: Payments to suppliers and employees 5,449 4,733 2,092 2,228 Grants paid 241 123 244 146 Interest expense paid 361 80 40 158 Income tax paid Group Level 1 Level 2 Level 3 Total 6,091 5,094 2,336 2,374 June 2014 Net30 cash (used in)/generated from operating activities 29 per Statement of Financial Position NetAssets cash from investing activities - Bond Portfolio Cash provided from: - Listedincome sharesreceived Dividend - Listed shares - JB Were Wealth Management Realisation of bonds - Unit Trusts - Cleary Wealth Management Proceeds from the sale of equities - Unit Trusts - Brook Assetassets Management Proceeds from sale of other - Direct Capital IV

- AFL shares Cash applied to: - Limited Partnership - ICP Koura Collective Purchase of dairy farm and livestock - WoodofEngineering Purchase investmentsTechnology Total assets Purchase of CO2 carbon forest Purchase of other non-current assets 30 June Purchase of 2013 Bonds

Assets per Statement of Financial Position - Bond Portfolio Listed(used shares Net- cash in)/generated from investing activities - Listed shares - JB Were Wealth Management Net- cash from/(used in) financing activities Unit Trusts - Cleary Wealth Management Cash provided - Unit Trustsfrom: - Brook Asset Management Income received onIVbehalf of Ngāti Hikakino & Ngāi Te Rangihouhiri - Direct Capital Loan advanced - AFL sharesfrom subsidiaries Repayment loans from- ICP subsidiaries - Limited of Partnership Koura Collective Capital contribution from non-controlling interest parties Total assets

Loan advanced from third party

$000's

$000's

1,590

(116)

(1,081)

558 2,981 1,316 4,855

995 3,008 826 1,500 14,110 4,756 1,623 8,874 826

-

2,052 1,400 1,039 694 3,000 8,185

-

11,539 2,568 1,913 17,118 252 500 16,772

(3,330)

(7,898)

154 400 554

1,400 6,281 7,681

3 3

3,675 823 154 3,675

154

$000's

$000's

(1,127) 7,860 59 835 - - - -835 - - 7,919 -

1,136 6,030 2,082 588 1,400 11,236

7,860 3,067 14,110 1,136 6,030 2,082 588 1,400 36,273

7,858 55 788 12,712 1,221 53 - -473 - 68 21,899 -

1,654 3,564 2,082 588 7,888

7,858 3,730 12,712 2,875 53 3,564 2,082 588 33,462

47 47

541

TRoNA

Cash applied to: Wealth Management Portfolio was reclassified as Level 1 during the year ended 30 June 2014 (2013: no transfers) as the portfolio consists of The JB Were Dividends distributions non-controlling interest parties 148 Portfolio223 - 2 was reclassified market and traded securities paid (levelto1). The $1,221,000 Cleary Wealth Management classified as level as level 3 during the year Repayment funds2014 to Ngāti Hikakino & Ngāi as Te Rangihouhiri 142 based on unobservable 142inputs. ended 30ofJune (2013: no transfers) the investments are in private -equity and valued 45 295 Repayment of term loans 193 660 142 The following table presents the changes in level 3 instruments, for the Group:

Net cash generated from financing activities

Unit Trusts- -Cleary Clearly Wealth Management Trusts Wealth Management NetUnit (Decrease)/Increase in Cash Balances Balance at beginning of the year Cash Balances at the Beginning of the Year Reclassify 2 equities as level Cash Balanceslevel at the End of the Year 3

14

361

7,021

154

399

(1,379) 8,013 6,634

(993) 9,006 8,013

(104) 219 115

60 159 219

Decrease due to realisation The accompanying accounting policies and notes form part of the financial statements. Total fair value gains/(losses) recorded in the statements of comprehensive income Balance at end of the year

Unit Trusts - Clearly Wealth Management Direct Capital IVIV Direct Capital Balance at beginning of the year Increase due to acquisitions Total fair value gains recorded in the statements of comprehensive income Balance at Balance atend endofofthe theyear year

49

2014 $000's 1,654 1,221 (1,451) (288) 1,136

3,564 291 2,175 6,030

2013 $000's 2,150 (383) (113) 1,654

2,920 75 569 3,564

AFL AFL Shares Shares in in thethe current period (2013: same) No changes changeshave haveoccurred occurred current period (2013: same) LimitedPartnership Partnership- ICP - ICPKoura Koura Collective Limited Collective Balance at beginning of the year Increase due to acquisitions Decrease due to capital returned Balance at end of the year

78 | Te Rūnanga o Ngāti Awa Annual Report 2014

588 588

33

616 (28) 588

38 Fair Value Estimation (continued) 2014 $000's 1,400 1,400

Wood Engineering EngineeringTechnology Technology Balance at beginning of the year Increase due to acquisitions Balance at end of the year

2013 $000's

-

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 of the underlying investments held by Direct Capital IV. 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. AFL Shares The fair value of the AFL income shares is based on cash flows calculated on an annual basis from 2014 to 2023 and a terminal value based on cash flows in 2023 with an assumed growth factor of 5% p.a. (2013: 2.5% p.a.) and a post tax discount rate of 8.2% (2013: 7.0%). Limited Partnership - ICP Koura Collective ICP Koura Collective is an investment vehicle which was formed to invest into crayfish quota. The fair value of the investment is based on cash flows calculated on an annual basis from 2014 to 2023 and a terminal value based on cash flows in 2023 with an assumed growth factor of 1.5% p.a. and a post tax discount rate of 7.0%. The following table presents financial assets and liabilities measured at fair value in the Statements of Financial Position as at 30 June 2014 for the parent:

Parent

30 June 2014 Assets per Statement of Financial Position

Level 1

Level 2

Level 3

Total

$000's

$000's

$000's

$000's

- Listed shares Total assets

25 25

-

-

25 25

30 June 2013 Assets per Statement of Financial Position - Listed shares Total assets

25 25

-

-

25 25

39 Events occurring after the reporting period Subsequent to year end, on 12 August, NgÄ ti Awa Asset Holdings Limited (NAAHL) divested the entire Australasian JB Were portfolio, totalling $11.2M. Of this, $2.1M was transferred to the International JB Were Portfolio. The remaining investment held by NAAHL in JB Were is comprised of $5.1M in the International portfolio and $0 in the Australian portfolio. Subsequent to year end, $4m of the bond portfolio has been liquidated and distributed to the Group. 7 to the Group. Subsequent to year end, Direct Capital liquidated a portion of the investments and distributed $2.6m

34

TRoN A

The Group had no additional events occurring after the reporting period (2013: nil).

79

Remuneration and Payments Employee Remuneration Payments to Employees to be disclosed under the Rūnanga 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 2014 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: $110,000 - $120,000 $150,000 - $160,000 $180,000 - $190,000

1 employee 1 employee 1 employee

Payments to Board members under the Rūnanga Charter Under the Rūnanga Charter clause 18.1(c), there is a provision for the profession fees that can be paid to Board Members. During the year ended 30 June 2014 the following board attendance meeting fees, other meeting fees, and professional fees were paid to Board Members. Name

Board

Bruce Aranga Monte Aranga Miro Araroa Charles Bluett Ngahuia Brown Materoa Dodd

TRONA TRONA TRONA TRONA TRONA TRONA

Meeting Fees Paid 0 630 2205 1260 630 2520

Charlie Elliot

TRONA

945

Manurere Glen Joseph Harawira Steffan Haua Mary Meri Hepi Hakahaka Hona Dayle Hunia Keld Hunia Aubrey Kohunui Putiputi Koopu Joe Mason Te Kei Merito Alfred Morrison Pouroto Ngaropo Serenah Nicholson Regina O’Brien Tuwhakairiora O’Brien Maanu Paul Paul Quinn Stanley Ratahi Patrick Salmon Mihipeka Sisley John Stipich Manukorihi Tarau Marcia Wahapango Tapuariki Wharewera Riritahi Williams Harawira Gardiner Graham Pryor Brian Tunui Waaka Vercoe Suzanne Read Beverley Hughes Leslie Stowell Donald Grant Wilhelm Studer

TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA TRONA NAGHL NAGHL NAGHL NAGHL

3150 1260 630 3150 1575 1890 1890 3150 1890 16205 30055 1890 13500 1575 2835 1890 630 1575 2835 1260 2835 945 1890 1575 1260 945 40500 22500 22500 22500

Other Meeting / Directorships held

Other Fees Paid

Appointments and Remuneration Committee; Executive Committee Audit Committee; Ngakauroa JV Director

2235 3200

NAGHL Director; Ngāti Awa Farms Limited Director

25500

Audit Committee Ngakauroa JV Director

3000 600

Ngakauroa JV Director

800

Ngāti Awa Farms Limited Director Ngāti Awa Farms Limited Director Ngāti Awa Farms Limited Director; Audit Committee Ngāti Awa Farms Limited Director; Ngakauroa JV Director Ngāti Awa Farms Limited Director; Audit Committee Ngakauroa JV Director Ngāti Awa Farms Limited Director; Ngakauroa JV Director Ngāti Awa Farms Limited Director Ngāti Awa Farms Limited Director

3000 3000 6000 2650 3750 200 3200 750 2250

80 | Te Rūnanga o Ngāti Awa Annual Report 2014

ANNUAL GENERAL MEETING Sunday

7 DECEMBER 2014 Mataatua, Te Mānuka Tūtahi 105 Muriwai Drive, Whakatāne

Te Rūnanga o Ngāti Awa Ngāti Awa House, 4-10 Louvain Street Whakatāne 3120, PO Box 76, Whakatāne 3158

Freephone: 0800 464 284 Telephone: 64 7 307 0760 Fax: 64 7 307 0762 Email: runanga@ngatiawa.iwi.nz Website: www.ngatiawa.iwi.nz Website: www.ngatiawa.com