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Twenty Seventeen- Twenty Eighteen

He tamou He

na momotu ahi ka kaa He pitahina pokorehu He ahi kaa


contents

Permanency............................................................. Matemateāone......................................................... Te Mana Motuhake ō Tūhoe......................................

Financial Statements...............................................

5 11 17 27


He Tanata Whakamoe tau,

He iwi whakamoe tau Nā rātau te moana hōhonu i waena i ā tātau i pāpaku ai, ā pāmamao i kukume mai ai kia tata. He kōawa roimata te tani nākau he marini wai ki te whenua. Tēnā koutou e taku nui, e taku rahi. Koutou nā pākeke, nā mātua nā tamariki mokopuna hoki, whakakotahi mai tātau kia tata. Kia piri mai rā tātau ki te whakamoe i te tau nei a 2018. E whā tau kua hipa mai i te irina patu ā te karauna me āna whakapahā. Nō te mutuhana ō tō tātau whawhai atu ki te kāwanatana, kua noho tātau ki te āta tātari ki te āta whakawā i te nui o te taotū ki ā tāua kia Tūhoe. Kua ohorere katoa tātau ki nā whakakitena. Kei hea he orana? Mā tō tātau hīkoitana i te huarahi māheuheu, me te whāwhā o nā rekereke i te huarahi o te pono e tae ake ai tātau ki te Mana Motuhake o Tūhoe e tūmanakohia nei e tātau. Kei hea he paina? Kei te raupā o te rina kei te rehe o te rina. Mā te mahi tahi me te mahi tika e kitea ake ai te ora ō tō tātau Tūhoetana. Kei hea te tika? Kei ā maunākau, kei ā maumahara. Kua tauirahia e ō tātau mātua tīpuna mē pēhea te noho tahi, me te mahi tahi. Kei te mōhio ō tātau nākau ki te noho iti ā te tanata hei pekepoho mō nā uri ō te Rani me te Whenua. Mā te whakapono ki tā tātau i whakatau ai i mua, tā tātau i kōrero ai, tā tātau i taurani ai, me te ū ki nā tikana e tutuki ai te orana ō te Iwi. I kōrerohia nā tīpuna e tāua i te pai ō ō rātau mahi. Me māia katoa tātau ki te whakatutuki mahi e hāruru ai te rono ki nā reana whakatipu. Kia rononui ai tātau mō mahina pai, ehara noaiho a kōrero pai!

Heamana Tūhoe - Te Uru Taumatua 2018

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TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN


E ta e ta e te pirita kia piri kia tata TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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We continue to question our practices, our actions. Suspicious of the root of our thinking as we challenge our own ability to embed Tūhoe principle with our work plans, our systems our everyday lives. Dissecting analysing and challenging existing paradigms, patterns and models and dispelling our irrational attachment to embedded western ways continues to hamper our progress. We continue to challenge each other, we challenge normality, we challenge our commitment to our principle, we must be accountable and our response must be immediate. Te Urewera has an expectation of Tūhoe leading the return to responsibility based thinking and she is urging haste. We are fearful that in the worldwide awakening to the atrocities inflicted upon Papatūānuku, Tūhoe and the treatment of Te Urewera are seen as a possible solution. Our truth is that whilst we have made notable progress, we can not honestly reveal ourselves to be the hope that the world needs, yet. The honesty that Tūhoe tikana requires is a healing process that in the short term may seem painful, but we must remain to the pathway and have belief that this honesty will be a key ingredient in the foundation for our Tūhoe designed future and reality.

a t ra e h He uhi

k a a t te piko a k

te whakairo

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TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN


PERMANENCY

The time scale from which Te Urewera balances herself is imperceptible to the human eye. As our awareness grows on the consequences our human actions have on our environment around us, our ego begins to dissolve. We are not interested in short term gains, we are interested in cautious sustainable growth. Growth in our wellbeing are true TĹŤhoe measures of success. It is not until we dismantle transactional relationships, and relearn the rich timeless wisdom of Te Urewera that we will see our kinship relationships flourish and our collaborative capability and development grow. TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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The growth of capability from ‘bush carpenter’ to certified carpenter, and that same growth spurt in other trades has been the highlight for our young men. They’ve gone from basic knowledge and capability to build kāuta to work and acquire skill and knowledge under the mantle of the Living Building Challenge. This has resulted in a major shift of thinking for our young.

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The launch of Te Kawa o Te Urewera last year radically re-shaped the way in which we interact with Te Urewera. For years many of us who have worked in Te Urewera did so under the DOC paradigm, so there has been challenging work involved for everyone wanting a relationship with Te Urewera to unlearn western approaches of land management, and (re)learn intuitive processes that challenge us to examine our own behavior, for the benefit of the land. This has been a period of slow transition, as kaimahi kept up existing priorities and inducted

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

new colleagues into their inherited responsibilities – while making space for the new reality of working under Te Kawa o Te Urewera. As a result, roles and responsibilities were restructured, redefined and recreated – moving away from rigid role descriptions and towards a more fluid sharing of responsibilities.


1700

Whanau are now enrolled in Tuhoe medical centres. Tāneatua now employs two doctors and two nurses.

Te Waimana Kaaku holds full-day GP clinics on Mondays, and events are held to raise awareness of prominent areas of concern including breastfeeding promotion, a breast cancer hīkoi, prostrate cancer awareness and dental visits.

To bring to life Tūhoe spirit and responsibility for building healthy homes and communities, we developed a 40 year vision for housing that outlines short, medium and long term actions. As a first step, we began by designing a pilot housing repairs and insulation programme to respond to those whānau most in need of urgent housing repairs. Across the rohe 33 houses were assessed and repairs to 6 whare were completed.

While the immediate repairs were undertaken, steps to bring forward the medium and long term actions began. Tūhoe hapū, Tribals and Iwi came together as one to host Te Ohu. Over 100 people from across NZ and overseas came together for a four-day exchange of ideas around the theme of kinship for people and the land, and how this will manifest in the design of future Tūhoe living villages.

TūHOE MEDICAL CENTRE REGISTRY

between the months of April 17 to March 18 Mar 18 Feb 18 Jan 18 Dec 17 Nov 17 Oct 17 Sep 17 Aug 17 Jul 17 Jun 17 May 17

368

10

20

30

40

50

Apr 17

Registered Patients TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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Manuhiri from all over the world continue to visit Te Urewera and Tūhoe seeking inspiration for their own homelands. Hawaiian, First Nation and Burmese manuhiri recently visited Te Kura Whare and had a kōrero with whānau of Tūhoe. Waikaremoana whārua responded to the need for growing local emergency infrastructure. Emergency response planning tools, networking, and groups created to grow resilience and to provide a community led response in the event of a disaster.

New and ongoing relationships with friends of Waikaremoana were established and maintained to progress Waikaremoana priorities with district council, regional council and Te Urewera groups. Tūhoe Fish Quota Limited embraced principles of Te Kawa o Te Urewera through supporting sustainable fisheries operations, and voluntarily shelving Annual Catch Entitlements to respectfully ensure the health of our fisheries by minimizing human impact.

The great walk Statistics 7728

VISITORS

Visited between July 2017 – June 2018. MANUHIRI

3046

Visited between Dec 2017 – Jan 2018.

18,083

BEDNIGHTS

bednights in the huts and campsites around the track at Panekire, Marauiti, Waiharuru, Waiopaoa, Whananui Tapuaenui, Marauiti, Korokoro.

FIREWOOD

90

cubic metres of firewood was used at these huts and campsites.

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TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

The opening of Te Kura Tanata at Te Tii provided local whānau with a sense of ownership and new employment opportunities. A gas station, chalet accommodation, a café, laundromat, wharepaku, general store and tribal office were officially opened earlier in the year at Ruatāhuna. It brings a rekindled sense of self-reliance, belonging, and hope - built and paid for by Tūhoe, there are no debts or repayments.


Interactive Tūhoe Trust Fund workshops began around the rohe, for whānau to gain a deeper understanding of what the Tūhoe Trust Fund is and how it works. Topics focused on the trust deed, investment portfolios, marae distribution requirements, risk management and future projects.

Te Wharepuri displayed three different exhibitions throughout the year, including ‘Te Ara Hou’ by Natasha Keating (Hāmua/ Nāti Muri). The series of artwork reflects on post-settlement realities and meditates on the renewed tribal orders – the lovers and the haters. The bleeding heart represents our love for the whenua, the green is for Te Urewera. Kōpu the morning star symbolises new beginnings, as does the new moon.

9825

Registered

Tuhoe

The Short Story MADE:

USED:

AVAILABLE:

$ 24.2 m

$ 11.2 m

$ 12.9 m

Investments, Subsidiaries, Operations

Annual Priorities, Operations, Tax/ Depreciation, Governance Fees: Chair $54k, Trustees $18k each

Tribal Development, Infrastructure Projects, Reinvestment

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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He takapu korouikahe kawau maro i t i h m w o oe parur o he m u m n o anawarahih he mawai e rana o mate i te ao?

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TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN


matemateāone

As our connection with Te Urewera grows stronger, our responsibility to our Tūhoe futures grows deeper. This reconnection with Te Urewera reignites an intuitive way of being, gently guiding us to the sacred spaces within ourselves. We need to be brave in what we do to mend the severed ties of matemateāone. To challenge and conquer the 170 years of false beliefs we hold, in order to transform our relationships with ourselves and each other. Although this whakapapa of unity, strength and resiliency has weakened, it is beginning to manifest itself today in our unrelenting pursuit to rebuild our communities based on the enduring natural law of Te Urewera.

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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TRIBAL REGISTRY

Ruatoki Ruatāhuna Waimana Waikaremoana

Te Waimana Kaaku produced recordings of peruperu, mōteatea and hosted two mau rakau wānana to interweave reo, culture and identity into the hearts, minds and wairua of our ranatahi.

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I tēnei tau kai te mahi tahi te Taraipara me TUT ki te whakatū i nā kaupapa e whai mahi ai nā whānau. Hei tauira, ko te Parakore, te Pā Noho me nā mahi o nā whakahaere paina a tōna wā. Arā atu anō ētahi kaupapa ōhana ka whāia i roto i nā tau e heke iho. Kua tīmata ki te kōrerorero ki nā kura i roto I te whārua me Tāneatua mō ētahi kaupapa e pā ana ki te mātaurana, ā, he tīmatana noa iho tēnei. Hai tēnei tau ka tū te kaupapa a te iwi ki te whakarauora i te huna kua riro i te nānara P, koinei te mate kino katoa e patu nei i nā whānau.

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

Ruatāhuna supported the facilitation of the Hui Ahurei a Tūhoe, which saw a collective effort of urban Tūhoe and the hau kāina to manage an event outside of the rohe.

years 94 oldest Youngest 1 month


With the Tribals we responded to the Eastern Bay of Plenty P Raids by providing immediate safety and care to Tūhoe whānau caught up in these raids. The team were on hand to connect them with support services, play games, listen, feed and reconnect tamariki to their Tūhoe hapū.

The Methamphetamine Rescue Programme: A Tūhoe Design Panel was created to develop a programme and framework for Tūhoe people choose to stop using methamphetamine. The customised framework is confirmed and the delivery programme is under development.

The Mending Room was developed and implemented, and is a response to mending the brokenness in whānau. This brokenness is seen in the high number of our whānau in the criminal justice system, and our tamariki under watch by the state. At this stage, the Mending Room is used as an alternative to being charged and going through a Court process for low-level offences. Police refer offenders to the mending room, following the participant agreeing to the offence committed. Once in the room, the participant is given the opportunity to tell those present what happened – their voice is heard. It is also a space to hear of the effects that their actions have caused to others. Should there be a victim, they are also given the opportunity to attend and let the participant know of the hurt they are feeling.

As per the Service Management Plan, relationships with other sectors of the Ministry of Justice continue to improve with hui taking place to begin bridging our working relationship. Key discussion points include how and why people are getting, selling and taking methamphetamine; where Tūhoe are at now and where we are going and how the Ministry of Justice can support Tūhoe.

WHAKAWHANAUNATANA If I Am Ok, Then Those Around Me Are Ok

Tuhoe Youth

under the age of 17

are more likely to be charged in Adult court, than any other group in Aotearoa .

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Marae Insurance: There was a one-off $25K drop to all Tūhoe marae. The purpose of this payment was to cover the cost of the back payments for Marae Insurance and improving safety standards within the Marae.

The Tribal assists with operational resourcing where possible. Tūhoe people employed during and after the construction of Te Tii.

during 16 construction, Employed now 7

Renovations were completed in Te Wharepuri, with public access to the Display Room. Opening this space creates a versatile, dynamic environment for Tūhoe story-telling platforms and greatly increases the efficiency of the climate control system operating in the collection store.

Te Tii operations leader, general store, cafe, care taker, cleaner, driver, kitchen hand.

The Waikaremoana Tribal Authority renews its leadership in its structure and appoints a new General Manager. The commitment to the Ruapani working group remains constant as the group takes steps to establish a Nāti Ruapani mai Waikaremoana negotiation group.

connecting

with tūhoe

4611

have access to an email address

5787

have access to a landline

5763

own cell phones 14

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN


tūhoe living outside the homelands 7 9 5 8

4

10

3

6 2

1

3 4, 8 9 0 Total Tuhoe Population (2013 NZ Census)

Country Location 1. New Zealand 2. Australia 3. United States of America 4. Canada 5. United Kingdom 6. Cook Islands 7. Denmark 8. Germany 9. Norway 10. Japan 11. Tokyo

Registered 9272 518 13 8 5 4 1 1 1 1

There were a total of

144 education

contribution applications,

with a total of

$150 k distributed TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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a na te a n a Whakaw i a a t m e i manu n a t e t N o a noriheke! i e n 16

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN


TE MANA MOTUHAKE ō TūHOE

Just as nature’s lore is stronger than any man’s law, so too is our unyielding commitment to the principles of Te Mana Motuhake ō Tūhoe - principles based on the laws of the natural world. Deep in nature lies our understanding of how to live a good and balanced life. From the deep underground root system of trees, to the manu that makes its home amongst its branches, we catch a glimpse into the respectful relationship between all living things. But as tanata whenua, we desire a track record for living responsibly with the land-living off the reputation of our ancestors is not enough. We desire consistent responsibility for Te Mana Motuhake ō Tūhoe to flourish. TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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Our Marae

with the highest registered Tuhoe are;

Tauarau &

Te Kūhā Tārewa

As we began challenging typical western frameworks of land management, Cyclones Debbie and Cook hit us with all that they had. We looked to how these weather patterns connect with Te Urewera for guidance on shifting our attitudes to help bring about people management for the benefit of the land. These cyclones were the catalysts needed to begin reframing innovative knowledge systems around our traditional Tūhoe knowledge and beliefs. Restoring our instinct for living in tune with our environment begins.

No one really knew the damage Debbie would cause and for most people it brought tragedy to their everyday lives and their homes. But for one person, this was an opportunity for having the biggest natural makeover in one night. Cyclone Debbie came with its mighty winds and rain then powered its way through Te Urewera.  The winds too powerful for our trees were found on the ground lifeless.  Our rivers and streams flowed viciously with a deafening roar causing the earth beneath to become soft and frail creating slips and damage to structures.  Te Urewera was evacuated the very next day and signs went up to close the Great Walk.  And for the first time in many years, Te Urewera was alone.  The day after the storm I was travelling home after work and couldn’t help but stop to look at the view.  The mist was hovering above and coming down ever so slowly as if to blanket Te Urewera.  The mountain ranges in the distant showing

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different shades of blue with the tip of some ranges lightly covered by the mist. Waikaremoana was still and calm and among all this there was silence. Seeing Te Urewera this way gave me the feeling she was having a long overdue rest she so deserves.  Te Urewera has played host to millions who come from far and near to free their minds from the pressures of living in the so-called concrete jungles.  Can you imagine hosting that many people in a year?  I would definitely be drained and tired and planning a retreat away.  Te Urewera plays a vital role in people’s lives, for some she’s a counsellor, for others she’s a friend.  For whatever reason we visit this ancient being, she has the experience to host and offer a remedy we seek for the heart, soul and mind.  For us humans, we have places to go to re-energise ourselves.  But Te Urewera doesn’t have that luxury of going on a retreat.  If she cannot go anywhere then something or someone has to

come to her. Like a person, Te Urewera needs a break from all this.  To me, Cyclone Debbie was the retreat that Te Urewera has waited and yearned for.     I believe Cyclone Debbie brought goodness to this spectacular being.  Debbie simply came and gave Te Urewera a total makeover.  Old trees were pulled from their roots to give way to the next generation of trees.  New waterways crafted providing sustenance to more of the land and its species and landslides formed a new layout to the land.  Not only did Debbie change the shape and form of Te Urewera but it also freed her from human contact.  So next time you’re in Te Urewera and you are here to find yourself or rejuvenate yourself remember you are not alone.  Te Urewera is right there sharing the same reasons for your visit but she is also tending to your inner needs. If she can do that, then we should also contribute to returning the favour.

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Our commitment to Te Urewera and reversing the effects of climate change was strengthened. The Road to Nature Trial began on two different sites on SH38, using a plant-based, nontoxic alternative to bitumen on Te Urewera roads. The first trial is near the Manapae Stream Bridge, Ruatāhuna and the second at Rosie Bay, Waikaremoana. These sites were specifically chosen as they represent areas that see diverse and unique conditions within Te Urewera. These sites will be examined over the next two years to understand the roads capabilities and to see if it will be accepted by Te Urewera. Of initial interest will be the durability of the

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road, with Te Wharekura o Huiarau taking up the responsibility of research and monitoring, with the students checking pot holes, ruts, dust, and general performance E ū tonu ana te Taraipara ki tō tātau reo me wā tātau tikana. Kai te pūmau tonu nā mānai o nā hapū, ko tō tātau reo o nā hui me whakahaere katoa. Kai te tautoko a TKOR i nā wānana a te Pae Nekeneke me nā wānana mau rākau a nā tamariki. I haere he tira mai i Rūātoki ki Pukekaikāhu i roto o Te Arawa ki te wāhi i pakana ai a Tūhoe me Te Arawa. Ko ētahi atu haerena kua whakaritea ko nā tohu whenua me nā pā o Rūātoki me Tāneatua me te haere ki Waikaremoana me Te Pūtere.

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

Waikaremoana Tribal adopts its responsibilities as tanata whenua under Te Kawa o Te Urewera, facilitating workshop for raising haukāina awareness. Delegates revisit Tribal Charter and Iwi structure as a means to remain focused on whārua aspirations and Iwi roles. Whānau wellbeing is a focus of two Tribal led events held within the whārua.


Te Waimana Kaaku continue to strengthen relationships with Te Waimana kura, and two classrooms are now available for hui and activities that support the education endeavours of ranatahi through to pākeke including environmental courses, car licensing, and employment skills. Operation Wisdom Tooth: 550 Tūhoe received a free dental check-up earlier this year when the New Zealand Defence Force set up camp in Tāneatua. Fillings, drillings, cleanings and extractions were

offered free of charge to whānau. The most common procedure was extractions and a total of 650 teeth were removed from Tūhoe mouths. Defence personnel visited Tūhoe schools to talk about the importance of oral health, healthy eating and physical activity. Operation Wisdom Tooth strengthened the relationship between Tūhoe and the NZDF with Ruatoki whānui taking a group up the river on horseback for a picnic lunch, and the NZDF gifting the Tāneatua Medical Centre a plaque, and two feijoa trees for Tūhoe.

91

Te Paa Rekareka – village of activities was held at Te Kura Whare during the school holidays. The school holiday programme was designed to reconnect tamariki to a Tūhoe way of life and included arts and crafts, games and a day trip into Te Urewera. “We learned how and when to gather kawakawa leaves, seeds and bark and looked at Manono. The day finished off around the process of making ronoa, and all the tamariki received a jar of Kawakawa and Manono ronoā.”

oldest koroua from Ruatahuna had his first dental check-up the

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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The Tūhoe Trust Fund is a legal structure that holds our resources. It is reflective of the hardship, loss, sacrifice and struggle of the past while also providing hope and growth opportunities for current and future Tūhoe. The Trust Fund is a collective instrument that makes Tūhoe stronger when used in conjunction with the assets that are natural to the Tūhoe way of life: Kinship, values and connection to the land.

of the fund. It is important to look after this “nest egg” or base investment as it helps to fund future investment projects like medical centre’s, tribal buildings and operational projects. It is the responsibility of the current generation to preserve and grow the resources in the Trust Fund, building a strong foundation for the benefit of future generations. It is not ours to spend it all today.

The Trust Fund is made up of Tāona and assets. Tāona are those things that are precious, priceless and irreplaceable to Tūhoe. They are the things that we work for, are culturally significant and last forever. Assets are the items that work for Tūhoe and enable Tūhoe to achieve our goals, protecting the Tāona and the Tūhoe way of life.

This year, we have embarked on a journey to share the learnings from the Trust fund with the wider Tūhoe community. This has been done through a series of discussion sessions with a member from the investment committee. The purpose of these workshops is to increase understanding about the rohe for what the Trust Fund is invested in and what can and is being achieved with these investments.

Since the formation of the Trust Fund, the asset base has grown through prudent investment. The Investment Committee has carefully selected investment options that protect the capital

The total value of the Trust Fund at 31 March 2018 was $365 million. There has been investment in:

Bank CNI Shares Receivables Fixed Assets Shares & Fishing Quota Financial Portfolio Term Deposits

$365 m

For the financial year ending 31 March 2018, the financial portfolio saw a change with drawing our holdings with New Zealand Asset Management as one of the fund managers. The current year has been another strong one for financial markets, despite global tensions over trade mounting. On the local scene, we have seen a sharp decline in consumer and business confidence following the 2017 general election. This has also seen the New Zealand dollar weaken against its global peers, slipping back to long term averages. In the recent time, the Trust Fund has moved $18M of the liquid assets into Te Manawa o Tūhoe Forestry rights. The assets within the Trust Fund will continue to help grow Te Mana Motuhake and Tūhoetana, enabling continued growth for Tūhoe. The financial portfolio has a target to achieve a 5% per annum real return since its inception in 2010. A ‘real return’ is the return received after deducting tax, fees and inflation from the gross return earned.  The real return reflects the increase in the true purchasing power of the capital invested.  The financial portfolio has exceeded its target over the term achieving a 5.86% per annum real return over the last 8 years. The Board and Investment Committee has therefore met its mandate for performance.

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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“Hapū of Waikaremoana are keenly aware of their responsibilities to uphold mana whenua, being based on the southern border of Te Urewera. Growing Tūhoe leadership within Waikaremoana is an ongoing focus of the Tribal to ensure the permanency of Tūhoe within our takiwā.” Waikaremoana Tribal Authority

“There needs to be a letting go and moving on from post-settlement phase and trust in knowing that the capabilities of our people and their skills are already here. Moving from colonized models of delivery needs trust and a letting go of these frameworks that ultimately repeat the colonized mamae of the past but is more damaging as it is our own face we see doing it. The ability to move to a new space is to have faith and believe that the mohiotanga that resides in our people is there from our past memories, our kuia our tupuna are just waiting for this new space to be created, when we are working together it will be done.” Te Waimana Kaaku

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TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN


“Ko te whakatipu i te pono ki roto i te whārua ka taea e te Taraipara nā tūmanako me nā kaupapa nui te whakatutuki. Mā te whakatutuki i nā mahi e whakapono mai ai nā hapū me nā whānau ka taea e tātau. Ko tētahi uauatana ko te pupuri i te kotahitana o nā whakaaro, mēnā ka taea tērā i te nuina o te wā ka tere te ana whakamua. Kai roto tonu i a mātau ētahi e whakararuraru ana i te ana whakamua. Ko tētahi raruraru ko te kore e haere ake o ētahi hapū ki nā hui a TKOR kia mōhio ai ki nā whakahaere a te Taraipara me te iwi, nō reira kua kore e whai wāhi mai ki te whakaputa kōrero mō nā kaupapa a te iwi me te āwhina hoki i nā mahi.” Te Komiti o Runa

“There is still serious work ahead of Ruatāhuna, it has been uplifting to say the least working alongside our Iwi rather than Government.” Tūhoe Manawarū

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN


Financial Statements for the year ended 31 march 2018

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

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Koukou mai te Ruru e tani te po, Kōrihi mai te Kōkō e tani te ao. E hakū tonu ana ki ā koe Turiōkahu, ko tō pā harakeke kua oti kē te ruirui, kō āpōpō mō rātau. Kei te ūri, kei te whanauna ē moe, ē moe, kia au tō moe. I noho mai koe hei Kaitiaki, he toa, he mānai mo tō hapū, whānau Iwi hoki, haere okioki atu rā.

TRUST DIRECTORY as at31 march 2018 OBJECTIVE OF BUSINESS Management of assets held in trust and the distribution of income from these assets for the longterm benefit of the Tūhoe Iwi as a Post Settlement Governance Entity.

ADDRESS 12 Tūhoe Street, Tāneatua AUDITORS BDO Wellington, 50 Customhouse Quay, Wellington 6011 BANKERS ASB Bank, Westpac Bank, BNZ Bank SOLICITORS David McLay, Daveys Burton, Bell Gully

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TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

TRUSTEES

TRIBAL

Tāmati Kruger

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

Patrick McGarvey Martin Rakuraku Ryan Te Wara

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

Ruatoki Ruatoki

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

Waimana

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

Waimana

William Joseph Doherty

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

Lance Winitana

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

Ruatāhuna

Waikaremoana


CONTENTS Independent Auditor’s Report................................. Statement of Comprehensive Revenue and Expense Statement of Changes in Equity............................... Statement of Financial Position............................... Statement of Cash Flows......................................... Notes to the Financial Statements...........................

30 32 33 34 35 36

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

29


INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TŪHOE TE URU TAUMATUA GROUP Opinion We have audited the financial statements of Tūhoe Te Uru Taumatua (“the Parent”) and the consolidated financial statements of the Parent and its subsidiaries (together, “the Group”), which comprise the Parent and consolidated statements of financial position as at 31 March 2018, and the Parent and consolidated statements of comprehensive revenue and expense, Parent and consolidated statements of changes in equity and Parent and consolidated cash flow statements for the year then ended, and notes to the Parent and consolidated financial statements, including a summary of significant accounting policies. In our opinion, the accompanying Parent and consolidated financial statements present fairly, in all material respects, the financial position of the Parent and the consolidated financial position of the Group as at 31 March 2018, and the Parent and consolidated financial performance and the Parent and consolidated cash flows for the year then ended in accordance with Public Benefit Entity Standards Reduced Disclosure Regime (“PBE Standards RDR”) issued by the New Zealand Accounting Standards Board. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (New Zealand) (“ISAs (NZ)”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Parent and Consolidated Financial Statements section of our report. We are independent of the Parent and Group in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our firm carries out other assignments for the Parent and Group in the area of taxation advice. The firm has no other relationship with, or interests in, the Parent or any of its subsidiaries. Other Information The Trustees are responsible for the other information. The other information obtained at the date of this auditor’s report is information contained in the annual report, but does not include the Parent and consolidated financial statements and our auditor’s report thereon. Our opinion on the Parent and consolidated financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon. In connection with our audit of the Parent and consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Parent and consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Trustees’ Responsibilities for the Parent and Consolidated Financial Statements The Trustee are responsible on behalf of the Parent and Group for the preparation and fair presentation of the Parent and consolidated financial statements in accordance with PBE Standards RDR, and for such internal control as the Trustees determine is necessary to enable the preparation of Parent and consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Parent and consolidated financial statements, the Trustees are responsible on behalf of the Parent and Group for assessing the Parent and Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Parent and Group or to cease operations, or have no realistic alternative but to do so.

30

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

BDO WELLINGTON


INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TŪHOE TE URU TAUMATUA GROUP Auditor’s Responsibilities for the Audit of the Parent and Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the Parent and consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these Parent and consolidated financial statements. As part of an audit in accordance with ISAs (NZ), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: •

Identify and assess the risks of material misstatement of the Parent and consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Parent and Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of the use of the going concern basis of accounting by the Trustees and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Parent and Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Parent and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Parent and Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the Parent and consolidated financial statements, including the disclosures, and whether the Parent and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Trustees regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Who we Report to This report is made solely to the Parent’s Trustees, as a body. Our audit work has been undertaken so that we might state those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Parent and the Parent’s Trustees, as a body, for our audit work, for this report or for the opinions we have formed.

BDO Wellington Audit Limited Wellington New Zealand 10 October 2018

BDO WELLINGTON

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

31


STATE MENT OF C O M P REH EN SI VE REVEN U E A ND E X P E NS E |

For the Year Ended 31 March 2018

Note Revenue Operational Income Other Income Total Revenue

GROUP 2018 2017

PARENT 2018 2017

$ 000's

$ 000's

$ 000's

$ 000's

3,269 7,304 10,573

2,870 8,872 11,742

6,902 6,311 13,213

5,822 6,585 12,407

6 6 6

5,012 712 4,138 9,862 711

5,154 1,024 4,266 10,444 1,298

4,144 410 12,816 17,370 (4,157)

3,727 728 10,647 15,102 (2,694)

9

6,119 6,830

9,047 10,346

(4,157)

(2,694)

5,830 96 2,124 14,881 (145) 15,027

5,756 126 776 17,004 (521) 17,525

5,830 479 2,124 4,276 749 3,527

5,756 474 126 776 4,437 221 4,216

39 15,065

1,109 18,634

3,527

4,216

8 8.1 8.2

Expenses (by Function of Expenses) Direct Costs Indirect Costs Administration & Other Costs Total Expenses Net Operating Surplus/(Deficit) Share of Profit & Loss of Associates: Share of equity accounted surplus and deficit Operating Surplus(Deficit) Other Revenue/(Losses) Tūhoe-Crown Treaty Settlement Gain/(Loss) on Revaluation of Financial Portfolio CNI Taxfree Distribution Gain/(Loss) on revaluation of Investment Property Non-exchange gain on purchase of Matahi Forest Rights Gain/(Loss) on revaluation of Matahi Forest Rights Impairment of Properties Surplus/(Deficit) for the year before income tax Tax Expenses/(Income) Surplus/(Deficit) for the year Other Comprehensive Revenue and Expense Gain/(Loss) on revaluation Other Intangibles Total Comprehensive Revenue and Expense

8.3 8.3 9 20 21 21 6 10

14

The accompanying notes form part of these financial statements

32

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

BDO WELLINGTON


STATE MENT OF C H A N G ES I N EQ UI T Y |

For the Year Ended 31 March 2018

Note Retained Surpluses Opening Balance

GROUP 2018 2017 $ 000's $ 000's

PARENT 2018 2017 $ 000's $ 000's

100,000

82,475

45,713

41,497

15,065 15,065

18,634 18,634

3,527 3,527

4,216 4,216

14

(39)

(1,109)

-

-

13

(39) 115,026

(1,109) 100,000

49,240

45,713

13

242,783 242,783

242,783 242,783

224,026 224,026

224,026 224,026

14

2,041 39 2,079

932 1,109 2,041

-

-

11

359,888

344,824

273,267

269,740

Total Comprehensive Revenue and Expense Total Recognised Revenues and Expenses for the period Less: Transfer Revaluation gains to Revaluation Reserve Intangible Assets Transfer to Fixed Capital Te Ohu Kai Moana Trust Settlement Closing Retained Surpluses Fixed Capital of Trust - Opening balance Transfers to Fixed Capital Closing Fixed Capital Revaluation Reserve: Opening Balance Transfer from Retained Surpluses - Intangible Assets Closing Revaluation Reserve Equity at Balance Date

The accompanying notes form part of these financial statements

BDO WELLINGTON

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

33


STATE MENT OF FI NA N C I A L P O SI T I O N |

For the Year Ended 31 March 2018

Note Trust Equity

Group 2018 $000's

2017 $000's

Parent 2018 $000’s

2017 $000’s

359,888

344,824

273,267

269,740

6,522 23,438 626 1,854 5 250 928 33,622

13,482 10,363 1,599 5 72 988 26,507

2,409 5,038 1,795 5 20 853 10,120

2,327 39 1,537 5 13 926 4,848

37,074 36 15,642 1,989 12,862 178,572 10,054 75,173 331,402

27,146 65 15,335 2,519 10,738 182,304 10,054 73,714 321,877

19,008 36 268 1,989 12,862 178,572 53,425 266,160

19,144 65 1,989 10,738 182,304 53,425 267,666

365,024

348,384

276,280

272,514

2,974

1,771

851

984

2,974

1,771

984851

2,161

1,790

2,161

1,790

5,136

3,561

3,013

2,774

359,888

344,824

273,267

269,740

Represented by:

Assets Current Assets 15 16 20

Cash and Cash Equivalents Term Deposits Investment Property - Held for Sale Receivables from non exchange transactions Inventories Other Current Assets Income Tax

18 10

Non-Current Assets 19 19 14 20 21 17 13 9 9

Property, Plant & Equipment Intangibles Other Intangibles - (Fishing Quota Shares & NZUs) Investment Property Matahi Forestry Rights Investments (Financial Portfolio) Investments (AFL Income Shares) Interest in CNI Iwi Holdings Trust - at cost Equity Accounted share in Associated Entity

Total Assets Less: Liabilities Current Liabilities 22

Creditors and Accruals under exchange transactions

Non-Current Liabilities 10

Deferred tax Liability

Total Liabilities Net Assets

Trustee

10 October 2018

Trustee

10 October 2018

The accompanying notes form part of these financial statements

34

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

BDO WELLINGTON


STATE MENT OF C A SH F L OW S |

For the Year Ended 31 March 2018

Note

GROUP 2018 2017 $ 000's $ 000's

PARENT 2018 2017 $ 000's $ 000's

Cashflow from Operating Activities 3,490

Receipts from operational and other income

Dividend Income

4,161

1,970

634

338

224

-

-

(7,145)

(8,672)

(6,897)

(6,105)

Investment income received

6,310

7,036

5,916

6,610

Donations Paid

(650)

(975)

(10,000)

(8,000)

Income Tax (Paid) / refunded

577

(42)

583

19

GST (paid)/recovered

(18)

-

(18)

-

2,901

1,729

(8,446)

(6,842)

4,660

4,033

4,660

3,975

-

-

-

-

(10,741)

(7,030)

(429)

(625)

(3,781)

4,034

4,296

4,073

Payments to Staff and Suppliers

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

-

-

-

-

(9,861)

1,037

8,527

7,423

-

-

-

-

Cash flows from Financing Activities Net cash generated from financing activities Net increase/(decrease) in cash and cash equivalents

(6,960)

2,766

82

581

Opening Balance

13,482

10,716

2,327

1,746

6,522

13,482

2,409

2,327

Cash and cash equivalents at balance date

BDO WELLINGTON

16

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

35


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

1 Reporting entity The Tūhoe Te Uru Taumatua ("TUT", "the Trust" or "Group") previously known as Tūhoe Establishment Trust is a common law trust established on 23 May 2009. In June 2013 Ngai Tūhoe whanui voted in support of the Tūhoe Comprehensive Settlement. The Tūhoe Iwi vote resulted in the adoption of a new Tūhoe Te Uru Taumatua Trust Deed. The financial statements of Tūhoe Te Uru Taumatua comprise the Trust, its subsidiaries and associates. The Trust reports its separate operations under 'Parent'. TUT is involved in the management of assets held in trust and the distribution of income from these assets for the long-term benefit of the Tūhoe Iwi as a Post Settlement Governance Entity. The Trust's primary objective is to provide goods and services for the social benefit of Tūhoe and not for financial return to any equity holders. For this reason it is designated as a Public Benefit Entity ('PBE').

2 Settlement with the Crown and formation of TUT On 1 July 2009 the Tūhoe Te Uru Taumatua, the approved Post Settlement Governance Entity (PSGE) received the Tūhoe component of the Central North Island (CNI) Settlement. The landmark settlement consisted of accumulated historic rentals, carbon entitlements and future forestry rentals. On 30 June 2009 a Trust Deed and Shareholders Agreement was signed to establish the CNI Iwi Holdings Trust to hold the settlement assets on behalf of the CNI Forests Iwi Collective. Under the CNI Deed of Settlement (DOS) the Crown returned 176,000 ha of North Island forest lands as well as interests in Crown Forestry Licenses with an agreed value of $225.6 million. In addition, Accumulated rents with a value of $284 million, held by Crown Forests Rental Trust, became payable to CNI Iwi Holdings, and was subsequently distributed to CNI Iwi Collective members. The DOS also deals with further assets to be settled on CNI Iwi Holdings, such as New Zealand Carbon Units (NZU's) to be settled free of charge. The CNI Iwi Holdings Trust Deed records that the various Governance Groups do not acquire an ownership interest in any of the assets of CNI Iwi Holdings. TUT is recorded in this deed as the Governance entity representing the interests of Ngai Tūhoe with a beneficial interest (right to income) in CNI Iwi Holdings for 35 years. During the initial period the Crown retains a 10% beneficial interest in CNI Iwi Holdings assets, the accumulated rents and current rents. The initial period is the period to 2014, during which time the Crown proportion is available to settle any claims outside of the DOS. At the termination of the initial period, Ngai Tūhoe beneficial represent 26.3125% (Initial period 23.68125%) the interest (right to income) in CNI Iwi Holding. In terms of the DOS there are restrictions on the disposal of the forestry assets during the initial period as well as during the 35 year terms of the forest leases. In June 2013 Tūhoe and the Crown signed the Te Urewera Deed of Settlement. The Deed of Settlement is the final settlement of all historical Treaty of Waitangi claims of Tūhoe resulting from acts or omissions by the Crown prior to 21 September 1992, and is made up of a package that includes: • agreed historical account, Crown acknowledgments and apology • redress over Te Urewera and other cultural redress • redress in relation to Mana Motuhake • financial and commercial redress. The Tūhoe Claims Settlement Bill was Passed into Law on 24 July 2014. In addition to the matters stated above, the settlement provides for the disestablishment of the Tūhoe Waikaremoana Maori Trust Board and Tūhoe Fisheries Charitable Trust and vesting of their assets and liabilities in Tūhoe Charitable Trust.

36

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

The Tūhoe Charitable Trust was also recognised by Te Ohu Kai Moana Trustee Limited as the Mandated Iwi Organisation in place of the Tūhoe Fisheries Charitable Trust; and Tūhoe Fish Quota Limited is the asset holding company of the Tūhoe Charitable Trust.

3 Basis of preparation (a) Statement of compliance The consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”). They comply with Public Benefit Entity International Public Sector Accounting Standards (“PBE IPSAS”) and other applicable Financial Reporting Standards, as appropriate for Tier 2 not-for-profit public benefit entities, for which all reduced disclosure regime exemptions have been adopted. The Group qualifies as a Tier 2 reporting entity as for the two most recent reporting periods it has had between $2m and $30m operating expenditure.

(b) Measurement basis The consolidated financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position, which are measured at fair value : • Financial Portfolio • Fish Quota Assets • Investment property • Investment classified as fair value through surplus or deficit

(c) Functional and presentation currency The financial statements are presented in New Zealand dollars ($) which is the controlling entity’s functional and Group’s presentation currency, rounded to the nearest thousand dollars ($000's). There has been no change in the functional currency of the Group during the year.

4 Use of judgements and estimates The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

(a) Judgements Judgements made in applying accounting policies that have had the most significant effects on the amounts recognised in the consolidated financial statements include the following: • Whether there is control (or not) over an investee • Whether there is joint control (or not) over an investee • Whether there is significant influence (or not) over an investee

(b) Assumptions and estimation uncertainties Assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 31 March 2018 include the following: • • • •

agreed historical account, Crown acknowledgments and apology redress over Te Urewera and other cultural redress redress in relation to Mana Motuhake financial and commercial redress.

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

5 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and have been applied consistently by the Group. The significant accounting policies of the Group are detailed below: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) (s)

Basis of consolidation Subsidiaries and associates Revenue Employee benefits Finance income and finance costs Financial instruments Impairment of non-derivative financial assets Inventory Property, plant and equipment Intangible assets Quota shares Investment property Biological assets Impairment of non-financial assets Leases Provisions Income Tax Goods and Services Tax Statement of Cash Flows

(a) Basis of consolidation

i. Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. The Group controls an entity when it has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The Group measures goodwill at the acquisition date as: The aggregate of: • The fair value of consideration transferred • The recognised amount of any minority interests in the acquiree, and • The fair value of any pre-existing equity interest in the acquiree Less: • The fair value of the net identifiable assets acquired and liabilities assumed. Any gain on bargain purchase gain is recognised immediately in surplus or deficit. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in surplus or deficit. Transactions costs related to a business combination incurred by the Group, other than those associated with the issue of debt or equity securities, are expensed in surplus or deficit as incurred. Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not subsequently remeasured and settlement is accounted for within net assets/equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in surplus or deficit. ii. Controlled entities Controlled entities are entities controlled by the Group, being where the Group has power to govern the financial and operating policies of another entity so as to benefit from that entity’s activities. The financial statements of the Group’s controlled entities are included in the consolidated financial statements from the date that control commences until the date that control ceases.

BDO WELLINGTON

Subsequent changes in a controlled entity that do not result in a loss of control are accounted for as transactions with controllers of the controlling entity in their capacity as controllers, within net assets/equity. iii. Loss of control of a controlled entity On the loss of control, the Group derecognises the assets and liabilities of the controlled entity, any minority interest, and the other components of net assets/equity related to the controlled entity. Any surplus or deficit arising on the loss of control is recognised in surplus or deficit. If the Group retains any interest in the previously controlled entity, then such interest is measured at fair value at the date that control is lost. Subsequently, the retained interest is either accounted for as an equity-accounted associated or an availablefor-sale financial asset depending on the level of influence retained. v. Associates Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity. Investments in associates for the Group are accounted for using the equity method and are recognised initially at cost, including directly attributable transaction costs. Investment in the Parent is carried at cost. The consolidated financial statements include the Group’s share of the surplus or deficit and other comprehensive revenue and expense of its equity accounted associates and jointly-controlledentities, after adjustments to align the accounting policies with those of the Group, from the date that significant influence or joint control commences until the date that significant influence or joint control ceases. When the Group’s share of losses exceeds its interest in its equity accounted associates and jointly-controlled-entities, the carrying amount of the investment, including any long-term investments that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. vi. Joint ventures Joint ventures are those entities over whose activities the Group has joint control, established by a binding agreement and requiring unanimous consent for strategic financial and operating decisions. Joint ventures that are structured in a separate vehicle are classified jointly-controlled-entities and are accounted for using the equity method (as detailed above for associates) proportionate consolidation method whereby a Group’s share of each of the assets, liabilities, revenue and expenses of a jointly controlled entity is combined line by line with similar items in the Group’s financial statements. Joint ventures that are not structured in a separate vehicle are classified as either jointly-controlled-operations or jointly controlled assets. The consolidated financial statements include the Group’s share of assets, liabilities, expenses, and revenues from the jointly-controlled-operation or jointly controlled asset on a line-by-line basis. vii. Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with equity accounted associates and jointly-controlled-entities are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

37


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

(b) Subsidiaries and Associates Subsidiaries:

Registered Charity

Operating Division

Ownership

Voting interest

Balance Date

Tūhoe Charitable Trust

CC45656

Distribution

TUT

100%

31 March

Tūhoe Fish Quota Limited

CC11440

Asset Holding

TCT

100%

31 March

Ruatoki Tribal Authority Charitable Company Ltd

CC52142

Community Development

TCT

100%

31 March

Waikaremoana Tribal Authority Charitable Company Ltd

CC52146

Community Development

TCT

100%

31 March

Te Waimana Kaaku Tribal Authority Charitable Company Ltd

CC52143

Community Development

TCT

100%

31 March

Tūhoe Manawaru Tribal Authority Charitable Company Ltd

CC52145

Community Development

TCT

100%

31 March

No

Investment

26.31%

12.50%

31 March

Associates: CNI Iwi Holdings Trust

The Tūhoe Charitable Trust was incorporated on 31 July 2010, with the objects: a) the promotion of health & wellbeing of members of Ngai Tūhoe b) the maintenance, upkeep and administration of Marae and Hapu c) matters beneficial to Ngai Tūhoe Communities i.e. education, health, housing, environment sustainability. The principle activity of the Tūhoe Charitable Trust is the provision of funding for these objects. Tūhoe Fish Quota Limited holds the settlement quota, the income shares and all other assets as custodian for the benefit of the charitable purposes of the Shareholder, Tūhoe Charitable Trust who were vested all assets and liabilities of Tūhoe Fisheries Charitable Trust as per the Tūhoe Settlement Claim Act 2014. The four Tribal Companies were incorporated during Nov-March 2015 period. Tūhoe Charitable Trust as a Parent completed a Single Entity registration with Charities Services under the name of Tūhoe Tribal Authorities. As part of the terms and condition of the Single Entity registration, the Parent has a duty to file annual return that must account for the activities of each registered charity that forms part of the single entity; and the financial statements must be consolidated for all of the registered charities that form part of the single entity using the relevant standards prescribed by the Financial Reporting Act 2013. The first Annual Return was due in 2016.

(c) Revenue Revenue is recognised when the amount of revenue can be measured reliably and it is probable that economic benefits will flow to the Group, and measured at the fair value of consideration received or receivable. The following specific recognition criteria in relation to the Group’s revenue streams must also be met before revenue is recognised. i. Revenue from exchange transactions Sale of goods Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognised as a reduction of revenue as the sales are recognised. Annual Catch Entitlement (ACE) Sales are accounted for in the respective ACE rounds as they are received. ACE are receipted for other species in April and in October for wet fish.

38

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

Rendering of services Services relate to Health Centre services as well as Te Urewera Management services provision Revenue from services rendered is recognised in surplus or deficit when the service is rendered. Amounts received in advance for services to be provided in future periods are recognised as a liability until such time as the service is provided. Forestry Rents - CNI Iwi Holdings Distribution Distributions from CNI Iwi Holdings comprise the Trust's share of forestry land rentals and is treated as revenue from operations and is recognised at the date of distribution. Rental income on investment property Rental income from investment property is recognised in surplus or deficit on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. ii. Revenue from non-exchange transactions Non-exchange transactions are those where the Group receives an inflow of resources (i.e. cash and other tangible or intangible items) but provides no (or nominal) direct consideration in return. With the exception of services-in-kind, inflows of resources from non-exchange transactions are only recognised as assets where both: • It is probable that the associated future economic benefit or service potential will flow to the entity, and • Fair value is reliably measurable. Volunteer services received are not recognised as the fair value of the services are not able to be reliably measured. Liabilities are recognised in relation to inflows of resources from non-exchange transactions when there is a resulting present obligation as a result of the non-exchange transactions, where both: • It is probable that an outflow of resources embodying future economic benefit or service potential will be required to settle the obligation, and • The amount of the obligation can be reliably estimated. The following specific recognition criteria in relation to the Group’s non-exchange transaction revenue streams must also be met before revenue is recognised. As a part of the settlement the Trust was able to purchase Matahi Forest at a price well below its fair value, therefore the transaction includes a non-exchange component equal to the difference between fair value and the purchase price.

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

Grants Grants are recognised as revenue when the conditions associated with the grants have been fulfilled. Non-exchange revenue includes grants, donations, koha received and some contract for services . Contract for services - Non-exchange revenue is recognised when received.

(d) Employee benefits i. Short-term employee benefits Short-term employee benefit liabilities are recognised when the Group has a legal or constructive obligation to remunerate employees for services provided with 12 months of reporting date, and is measured on an undiscounted basis and expensed in the period in which employment services are provided. ii. Long-term employee benefits Long-term employee benefit obligations are recognised when the Group has a legal or constructive obligation to remunerate employees for services provided beyond 12 months of reporting date. iii. Termination benefits Termination benefits are recognised as an expense when the Group is committed demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting date, then they are discounted to their present value.

(e) Finance income and finance costs Finance income comprises interest income on financial assets, gains on the disposal of available-for-sale financial assets, fair value gains on financial assets at fair value through surplus or deficit, and gains on the remeasurement to fair value of any preexisting interest in an acquiree. Interest income is recognised as it accrues in surplus or deficit, using the effective interest method. Finance costs comprise interest expense on financial liabilities, unwinding of the discount on provisions, losses on disposal of available-for-sale financial assets, fair value losses on financial assets at fair value through surplus or deficit, impairment losses recognised on financial assets, and fair value adjustments on concessionary loans issued.

(f) Financial instruments The Group initially recognises financial instruments when the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire. The Group also derecognises financial assets and financial liabilities when there has been significant changes to the terms and/or the amount of contractual payments to be received/paid. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

BDO WELLINGTON

The Group classifies financial assets into the following categories: fair value through surplus or deficit, held-to-maturity, loans and receivables, and available-for-sale. The Group classifies financial liabilities as amortised cost, which includes accounts payable, funds in custody and accrual expenses. Financial instruments are initially measured at fair value, plus for those financial instruments not subsequently measured at fair value through surplus or deficit, directly attributable transaction costs. Subsequent measurement is dependent on the classification of the financial instrument, and is specifically detailed in the accounting policies below. i. Fair value through surplus or deficit A financial instrument is classified as fair value through surplus or deficit if it is: • Held-for-trading: Derivatives where hedge accounting is not applied • Designated at initial recognition: If the Group manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Group’s documented risk management or investment strategy. Financial instruments classified as fair value through surplus or deficit are subsequently measured at fair value with gains or losses being recognised in surplus or deficit. This includes investments (Financial Portfolio) ii. Held-to-maturity If the Group has the positive intent and ability to hold debt securities to maturity, then such financial assets are classified as held-to-maturity. Held-to-maturity financial assets are subsequently measured at amortised cost using the effective interest method, less any impairment losses. Held-to-maturity financial assets comprise term deposits. iii. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are subsequently measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise cash and cash equivalents, monetary recoverables and other current assets (excluding tax receivables and prepayments) Cash and cash equivalents represent highly liquid investments that are readily convertible into a known amount of cash with an insignificant risk of changes in value, with maturities of 3 months or less. iv. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are not classified in any of the above categories of financial assets. Available-for-sale financial assets comprise shares in Aotearoa Fisheries Limited (AFL). AFL shares are being carried at cost as there is no quoted market. The fair value of the AFL shares cannot be reliably measured due to no active market. Upon derecognition, the accumulated gain or loss within net assets/equity is reclassified to surplus or deficit.

(g) Impairment of non-derivative financial assets A financial asset not subsequently measured at fair value through surplus or deficit is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset, and that the loss event(s) had an impact on the estimated future cash flows of that asset that can be estimated reliably.

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

39


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

Objective evidence that financial assets are impaired includes default or delinquency by a counterparty, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a counterparty or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers in the Group, economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition, for an equity security classified as an available-for-sale financial asset, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.

(i) Property, plant and equipment i. Recognition and measurement Items of property plant and equipment are initially measured at cost, except those acquired through non-exchange transactions which are instead measured at fair value as their deemed cost at initial recognition.

i. Financial assets classified as held-to-maturity and loans and receivables

Heritage assets with no future economic benefit or service potential other than their heritage value are not recognised in the statement of financial position.

The Group considers evidence of impairment for financial assets measured at amortised cost (loans and receivables and held-tomaturity) at both a specific asset and collective level.

Items of property, plant and equipment are subsequently measured either under the:

All individually significant assets are assessed for specific impairment. Those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Assets that are not individually significant are collectively assessed for impairment by grouping together assets with similar risk characteristics. In assessing collective impairment the Group uses historical trends of the probability of default, the timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in surplus or deficit and reflected in an allowance account against loans and receivables or held-to-maturity. Interest on the impaired asset continues to be recognised. When an event occurring after the impairment was recognised causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through surplus or deficit. ii. Financial assets classified as available-for-sale Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value reserve in net assets/equity to surplus or deficit. The cumulative loss that is reclassified from net assets/equity to surplus or deficit is the difference between the acquisition cost, net of any principal repayment and amortisation, and the current fair value, less any impairment loss recognised previously in surplus or deficit. Changes in impairment provisions attributable to application of the effective interest method are reflected as a component of interest income. If, in a subsequent period, the fair value of an impaired available-for-sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognised, then the impairment loss is reversed, with the amount of the reversal recognised in surplus or deficit. However, any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive revenue and expense.

(h) Inventory Inventory is initially measured at cost, except items acquired through non-exchange transactions which are instead measured at fair value as their deemed cost at initial recognition. Inventories are subsequently measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition.

40

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

• Cost model: Cost (or fair value for items acquired through nonexchange transactions) less accumulated depreciation and impairment. • Revaluation model: fair value, less accumulated depreciation and accumulated impairment losses recognised after the date of the most recent revaluation. Valuations are performed with sufficient frequency to ensure that the fair value of a revalued asset does not differ materially from its carrying amount. Gains and losses on revaluation are recognised in other comprehensive revenue and expense and presented in the revaluation surplus reserve within net assets/equity. Gains or losses relating to individual items are offset against those from other items in the same class of property, plant and equipment, however gains or losses between classes of property, plant and equipment are not offset. Any revaluation losses in excess of credit balance of the revaluation surplus for that class of property, plant and equipment are recognised in surplus or deficit as an impairment. All of the Group’s items of property plant and equipment are subsequently measured in accordance with the cost model. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the following: • The cost of materials and direct labour • Costs directly attributable to bringing the assets to a working condition for their intended use • When the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the items and restoring the site on which they are located, and • Capitalised borrowing costs. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in surplus or deficit. Upon disposal of revalued items of property, plant and equipment, any associated gain or losses on revaluation to that item are transferred from the revaluation surplus to accumulated surplus. ii. Reclassification to investment property When the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value and reclassified as investment property. Any gain or loss arising on remeasurement is recognised in surplus or deficit.

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

iii. Subsequent expenditure Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance is expensed as incurred. iv. Heritage Assets Financial Reporting standards in New Zealand recognise that some assets have a heritage element because of their cultural, environmental or historical significance. The standards recognise that the value of such assets in cultural, environmental, educational and historical terms is unlikely to be fully reflected in a financial value based purely on a market price, that legal or statutory obligations may impose prohibitions or restrictions on disposal or sale and that they are often irreplaceable. TUT recognises two of its assets as having the characteristics of Heritage assets: iv.a) Te Urewera An important element of the Deed of Settlement signed with the Crown in July 2014 relates to joint control over Te Urewera National Park. The Te Urewera Act 2014 notes that for Tuhoe, Te Urewera is their place of origin and return and their homeland. The Act contains restrictions on the ability to alienate, mortgage, charge or otherwise dispose of the land. The Act constitutes the Te Urewera Board to manage Te Urewera. For the first three years,four members of the Board are appointed by Tuhoe and four by the Crown. In terms of the Act, major decisions must be unanimous and others by concensus. Tuhoe considers that the Te Urewera land is a Heritage asset due to its nature and characteristics. Further, the value of the land cannot be reliably measured due to its historical and cultural value. iv.b) Lake Waikaremoana The Lake Waikaremoana Act 1971 vested ownership of Lake Waikaremoana in Tuhoe Waikaremoana Maori Trust Board and Wairoa Waikaremoana Maori Trust Board as tenants in common. In accordance with the terms of the Te Urewera - Tuhoe Claims Settlement Bill, from the settlement date all assets and liabilities of the Tuhoe Waikaremoana Maori Trust Board have been vested in the Tuhoe Charitable Trust. In the past, The value of the Lake has been determined by calculating the present value of expected future cash inflows. Expected future cash inflows are for the period of the lease agreements that are in place for use of the Lake bed. As far as the Trust is concerned the above method is a way of calculating the accounting value of the Lake bed but does not reflect the cultural, social and economic benefit of the lake to the Tūhoe iwi. In consideration of the Lake's cultural and social value to Tūhoe, the Trust has decided not to use a sensitive accounting value of the Lake that does not represent the real value of the asset. The Trust recognises that there is no method to determine a Fair Value or a Depreciated Replacement Cost (DRC) of this asset. Finally, the Trust has recognised that the Lake is : • a unique asset that has iconic status • historic and irreplaceable; and • an asset that is sacred to Tūhoe community. The Trust has decided not to value the Lake for the purpose of Financial Reporting and acknowledges that the Waikaremoana Lake as Tūhoe's Heritage asset whose value cannot be reliably determined. v. Depreciation For plant and equipment, depreciation is based on the cost of an asset less its residual value, and for buildings is based on the revalued amount less its residual value. Significant components of individual assets that have a useful life that is different from the remainder of those assets, those components are depreciated separately.

BDO WELLINGTON

Depreciation is recognised in surplus or deficit over the estimated useful lives of each component of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated. Assets under construction are not subject to depreciation. The diminishing value depreciation rates are: • • • • • •

Art & Archives 10% to 100% Buildings 2% to 3% Plant and equipment 10% to 67% Motor vehicles 30% Fixtures and fittings 10% to 30% Computer equipment 16% to 60%

Depreciation methods, useful lives, and residual values are reviewed at reporting date and adjusted if appropriate. Depreciation and amortisation rates are unchanged from 2015 .

(j) Intangible assets i. Recognition and measurement Intangible assets are initially measured at cost, except for: • Intangible assets acquired through non-exchange transactions (measured at fair value), and • Goodwill (measured in accordance with business combination accounting – refer Note 5(a)(i)). All of the Group’s intangible assets are subsequently measured as per the fair market price, except for the following items which are not amortised and instead tested for impairment: • Goodwill • Intangible assets with indefinite useful lives, or not yet available for use. The Group has no intangible assets with indefinite useful lives. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed intangible assets includes the following: • The cost of materials and direct labour • Costs directly attributable to bringing the assets to a working condition for their intended use, and • Capitalised borrowing costs. ii. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in surplus or deficit as incurred. iv. Amortisation Amortisation is recognised in surplus or deficit over the estimated useful lives of each amortisable intangible asset. The diminishing value amortisation rates are: • Software 50% to 60% (2017: 50% to 60%) Amortisation methods,useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(k) Quota Shares Quota shares are recorded initially at cost. Settlement quota shares are recorded at a value determined by the settlement documentation. All quota shares are subsequently revalued to fair value. Any gains on revaluation are recognised in Other Comprehensive Revenue & Expenses. Fair value is determined as the latest valuation less any impairment cost. Valuations are undertaken on a regular basis to ensure the carrying amount does not differ materially from the fair value of the shares. Impairment losses are recognised whenever the carrying amount of an asset exceeds its recoverable amount. Quota shares are tested for impairment whenever there is an indication of impairment on an individual basis or at a cash-generating unit level.

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

41


N OTES T O T HE FI NA N C I A L STAT EM EN T S | (l)

For the Year Ended 31 March 2018

Investment property Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. i. Recognition and measurement Investment property is initially measured at cost, except those acquired through non-exchange transactions which are instead measured at fair value as their deemed cost at initial recognition. Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of selfconstructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs. Investment properties are subsequently measured at fair value. Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in surplus or deficit. ii. Reclassifications When an investment property that was previously classified as property, plant and equipment is sold, any related amount included in the revaluation reserve is transferred to retained earnings. When the use of an investment property changes to owner occupied, such that it results in a reclassification to property, plant and equipment, the property’s fair value at the date of reclassification becomes its cost for subsequent accounting.

(m) Biological assets Biological assets including forestry rights are initially measured at cost except those acquired through non-exchange transaction which are instead measure at fair value as deemed cost at initial recognition. Biological assets are subsequently measured at fair value less cost of disposal. Any gain or loss on disposal of Biological asset is recognised in surplus or deficit.

(n) Impairment of non-financial assets The carrying amounts of the Group’s non-financial assets, other than biological assets, investment property, and inventories, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill, indefinite life intangible assets, and intangible assets not yet available for use are tested annually for impairment. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows (for cash-generating assets) or future remaining service potential (for non-cashgenerating assets) are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.

42

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

Impairment losses are recognised in surplus or deficit. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

(o) Leases i. Classification and treatment Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Finance leases Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Operating leases Leases that are not finance leases are classified as operating leases. Operating leases are not recognised in the Group’s statement of financial position. Payments made under operating leases are recognised in surplus or deficit on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. ii. Determining whether an arrangement contains a lease At the inception of an arrangement the Group determines whether such an arrangement is or contains a lease. This will be the case if the following two criteria are met: • The fulfilment of the arrangement is dependent on the use of a specific assets or assets, and • The arrangement contains a right to use the asset(s). At inception or on reassessment of the arrangement, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group concludes for a finance lease that it is impracticable to separate the payments reliably, then an asset and a liability are recognised at an amount equal to fair value of the underlying asset. Subsequently the liability is reduced as payments are made and an imputed finance cost on the liability is recognised using the Group’s incremental borrowing rate.

(p) Provisions A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost within surplus or deficit.

(q) Income Tax TUT is a Maori authority for income tax purposes. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance date. Management periodically evaluates positions taken in tax returns where applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the parent's statement of financial position differs from its tax base, except for differences arising on: - The initial recognition of goodwill - The initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting or taxable profit, and - Investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future. Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised. The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax liabilities/ (assets) are settled/ (recovered). Deferred tax is not brought to account In respect of the subsidiaries as all subsidiaries are registered charities and not liable for taxation or in respect of the equity accounted associate as there is no difference between the carrying amount and tax base.

(r) Goods and Services Tax TUT is registered for GST and amounts in these financial statements are stated exclusive of GST with the exception of Receivables and Payables which are inclusive of GST. The activities of TUT on behalf of its members mean that some form of apportionment is required for the deduction of GST inputs. The basis of apportionment has been agreed with the IRD. The apportionment effect is disclosed separately in the Statement of Compresive Revenue and Expenses.

(s) Statement of Cash Flows Operating activities include amounts received from investment income and other income sources and payments to employees and suppliers to manage the day-to-day running of TUT. Investing activities are those related to the purchase and disposal of investments and property, plant and equipment. Financing activities comprise loans and borrowings and distributions to members of TUT.

BDO WELLINGTON

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

43


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

6 Expenses include Note

GROUP 2018 2017 $000's $000's

PARENT 2018 2017 $000's $000's

Direct Costs: Governance Costs Employee Benefit expense (Management & Direct)

377

426

186

211

3,171

3,076

1,942

2,002

5

24

195

24 1,148

Group Project Direct Costs Anamata

1,006

1,198

1,006

Iwi

Onukurani

122

136

219

64

Whairawa

252

210

542

210

79

84

53

68

5,012

5,154

4,144

3,727

Resources & maintenance

325

469

135

282

Communication Unit costs

100

251

94

242

Telecommunications

45

78

24

53

Utilities

95

76

69

63

146

151

89

88

712

1,024

410

728

Personel Expenses

918

1,066

838

843

Financial Portfolio Management Fees

727

847

727

847

845

692

594

604

167

114

167

114

Other Direct Costs - Cost of sales

Indirect Costs:

Other Indirect Costs

Administration & Other Costs include:

Depreciation & Amortisation

19

GST Apportionment Insurance Donation

7

135

104

90

86

650

975

10,000

8,000

106

87

43

40

20

13

14

13

53

135

43

54

405

176

259

30

96

56

40

15

Fees paid to Auditors: For Audit services For Taxation services Professional Fees Grants Paid Other Administration Costs Tribal Capacity (Other Costs)

Total Kiwisaver Employer contribution included within the Direct wages and Personnel expenses

15

-

0

-

4,138

4,266

12,816

10,647

88

89

69

64

-

-

-

-

Impairment of Properties 22 Tuhoe Street Ruatahuna Store

7 Donations Note In March 2018 Tūhoe Te Uru Taumatua made donations of $10,000,000 (LY $8,000,000) in income to the Tūhoe Charitable Trust. The Tūhoe Charitable Trust as at 31 March has applied $650,000 (LY $975,000) for marae funding purposes.

44

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

-

-

-

-

-

-

-

-

GROUP 2018 2017 $000's $000's

650

975

PARENT 2018 2017 $000's $000's

10,000

8,000

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

8 Revenue

GROUP Note

PARENT

2018 $000's

2017 $000's

2018 $000's

2017 $000's

721 1,810 395 344 3,269

774 1,398 368 329 2,870

1,698 5,068 99 37 6,902

1,378 4,315 100 30 5,822

7 398

1,500 8 5

3 391

3 -

828 5,661 410 7,304

714 6,295 350 8,872

255 5,661 6,311

288 6,295 6,585

8.1 Income from Operations (exchange revenue) ACE Trading Receipts from business Forestry rentals - Distribution from CNI Iwi Holdings Service provision Lease & Rental income

9

8.2 Other Income Non-exchange revenue Grant Received Koha Received Sundry Income

Exchange revenue Interest Income Investment Income Dividend Earned

17

(a) Grants are recognised as revenue when the conditions associated with the grants have been fulfilled. (b) Dividend earned from Aotearoa Fisheries Limited Shares ( Total Shares 8,754). Maori Authority credits attached to AFL's dividend $71,742 (LY $61,182) have been claimed for refund from the IRD and taken up as an account receivable.

8.3 Other gains/(losses) (a) Tūhoe and the Crown signed a Deed of Settlement on 4 June 2013. The Tūhoe Deed of Settlement is the final settlement of all historical Treaty of Waitangi claims of Tūhoe resulting from acts or omissions by the Crown prior to 21 September 1992, and is made up of a package that includes: • agreed historical account, Crown acknowledgments and apology • redress over Te Urewera and other cultural redress • redress in relation to Mana Motuhake • financial and commercial redress. The Tūhoe Claims Settlement Bill was passed in the House, at Parliament on 24th July 2014. The Act has disestablished - Tūhoe Waikaremoana Maori Trust Board - Tūhoe Fisheries Charitable Trust The Act also vested all of their assets and liabilities in Tūhoe Charitable Trust. The Tūhoe Charitable Trust was also recognised by Te Ohu Kai Moana Trustee Limited as the Mandated Iwi Organisation in place of the Tūhoe Fisheries Charitable Trust; and Tūhoe Fish Quota Limited is the asset holding company of the Tūhoe Charitable Trust. Tūhoe received the cash settlement amount in advance during September 2013.

GROUP Note Fair value of assets vested: Tūhoe Waikaremoana Maori Trust Board Tūhoe Fisheries Charitable Trust Tūhoe Fish Quota Limited

PARENT

2018 $000's

2017 $000's

2018 $000's

2017 $000's

-

-

-

-

The following adjustments were made in determining the value of the Crown Settlement: As explained in note 5 (i), the Lake Waikaremoana asset, previously included at fair value in the financial statements of Tūhoe Waikaremoana Maori Trust, is regarded as a heritage asset whose fair value cannot be reliably measured. For this reason, its value in the financial statements of the Tūhoe Waikaremoana Maori Trust has been eliminated.

BDO WELLINGTON

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

45


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

Note (b) Fair value gains/(losses) on Managed Portfolio- unrealised AMP Capital First NZ ANZ Investments NZAM

Started Started Started Started

May-13 Mar-14 Dec-15 Dec-15

17

GROUP 2018 2017 $000's $000's 1,866 1,764 2,200 0 5,830

2,560 2,590 1,590 (984) 5,756

PARENT 2018 2017 $000's $000's 1,866 1,764 2,200 0 5,830

2,560 2,590 1,590 (984) 5,756

9 Accounting for Associates, Partnerships and Joint Ventures

The following entities meet the definition of an associate and have been equity accounted in the Group financial statements of TUT: CNI Iwi Holdings Trust (Beneficial interest 26.3125% [LY 26.3125%])

Note

GROUP 2018 2017 $000's $ 000's

CNI Iwi Holdings Trust: Investment at cost Prior year equity accounted adjustments (net) Less: Distribution received (Net of Maori Tax Credits) Less: Tax Free Distribution received (Crown Allocation Portion) Add/Less: Increase in opening equity adjustment from Audit Add: Share of surplus after tax Add: Prior year adjustment for timing difference on settlement of Crown agreed portion and NZU's Net Equity accounted share of surplus or deficit Equity accounted share in CNI Iwi Holdings Trust

53,425 20,289 73,714 4,181 479 -

53,425 15,275 68,700 3,560 474 -

6,119

9,072

-

(25)

6,119 75,173

9,047 73,714

Crown agreed portion and NZU's: In the financial statements of CNI IHT, NZ Carbon Credit units (NZU's) are valued at balance date at $20.95 per unit (LY:$17.30 per unit).

46

TĹŞHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

10 Income Tax Note

GROUP 2018 2017 $000's $000's

PARENT 2018 2017 $000's $000's

Tax Expense/(Income) (i) Current tax expense/(income) Recognised in the Income Statement Surplus before Tax Taxable Income

14,881 14,881

17,004 17,004

4,276 4,276

4,437 4,437

Prima Facie Taxation at 17.5% Tax on the Expenditure not deductible for tax purposes Non taxable Income

2,604 651 (2,887)

2,976 590 (2,919)

748 769 (66)

776 590 -

(595) 69 138 106 (282) (145) (145)

(859) 118 30 (58) (399) (521) (521)

(628) 69 138 (282) 749 749

(894) 118 30 (399) 221 221

(517) 372

(657) 136

377 372

85 136

(988) (517) 71 648 (928)

(286) (657) (65) 18 (988)

(926) 377 (887) 583 (853)

(217) 85 (755) (39) (926)

Non taxable Other Income FIF - non claimable Tax portion Under/(over) provision - prior year Temporary difference Non taxable surplus from Charitable Entities Imputation credit and foreign tax credit unutilised

Tax on Taxable Income Current Tax Expense/(Income) (ii) Split between Tax Expense/(Income)

Original and reversal of temporary differences

Income Tax Payable/(Refundable) Opening Balance Current income tax expense Maori tax credit PIE and Income tax paid to IRD Taxes payable at year end

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

TĹŤhoe Charitable Trust is a registered charity and its net surplus is not taxable. Because not all expenses are incurred in deriving taxable income, they are subject to apportionment based on an apportionment model. The taxable income above is after application of the apportionment model and is subject to confirmation by Inland Revenue when tax returns are assessed. Taxes payable at balance sheet date includes PIE tax withheld by the managers of the investment portfolio. These taxes (2018:564,673.69 and 2017:519,572) are paid to the IRD in April.

Deferred Tax (Parent and Group) Deferred tax liability/(asset) Balance 1 April 2016 Recognised in surplus or deficit - 2017 Balance 31 March 2017 Recognised in surplus or deficit - 2018 Balance 31 March 2018

BDO WELLINGTON

Prepaid expenses

Matahi Forest

Total

4 4 4

1,650 136 1,786 372 2,157

1,654 136 1,790 372 2,161

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

47


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

11 Equity Note

Total Equity

Retained Earnings

Fixed Capital

Revaluation Reserve

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

Group 2018 Balance at 1 April 2017 Total Recognised Revenue Transfer to Revaluation Reserve Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2018

14

344,823 15,065 -

100,000 15,242 (39) -

242,783 15,065 -

2,041 39 -

359,888

115,027

242,783

2,079

326,190 18,634 -

82,475 18,634 (1,109) -

242,783 -

932 1,109 -

344,824

100,000

242,783

2,041

269,740 3,527 273,267

45,713 3,527

224,026 224,026

-

224,026 224,026

-

Group 2017 Balance at 1 April 2016 Total Recognised Revenue Transfer to Revaluation Reserve Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2017

14

Parent 2018 Balance at 1 April 2017 Total Recognised Revenue Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2018

49,240

Parent 2017 Balance at 1 April 2016 Total Recognised Revenue Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2017

265,524 4,216 269,740

41,497 4,216

45,713

This amount termed 'fixed capital' has been set aside as the capital received through Settlement, a transfer has been made from Retained Earnings to Fixed Capital of the Trust in the 2010, 2014 and 2015 financial years. The amount transferred into fixed capital is determined as follows:

Year

Beneficial interest in Forest Land settled Accumulated Rents distributed in terms of DOS Less: Portion of Accumulated rents derived after 1 July 2009 Tūhoe Financial Redress (Comprehensive Settlement)

2010 2010 2010 2014

53,425 67,253 (2,692) 106,040 224,026

2015

18,757 242,783

Parent Te Ohu Kai Moana Trust Settlement

Group

48

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S | 12 Crown Settlement - 2015 Tūhoe Waikaremoana Maori Trust Tūhoe Fisheries Charitable Trust Tūhoe Fish Quota Limited Central North Island Iwi Holdings Ltd

For the Year Ended 31 March 2018

Cash& Investment Property Deposits 3,583 1,405 4,988

1,060 1,610 2,670

TOKM Assets

Land

Fish Quota

Others

Total

18,757 18,757

8 8

4,028 4,028

(23) 18 100 95

4,629 18 24,289 1,610 30,545

The following adjustments were made in determining the value of the Crown Settlement: a) As explained in note 5, the Lake Waikaremoana asset, previously included at fair value in the financial statements of Tūhoe Waikaremoana Maori Trust, is regarded as a heritage asset whose fair value cannot be reliably measured. For this reason, its value in the financial statements of the Tūhoe Waikaremoana Maori Trust has been eliminated.

13 Te Ohu Kai Moana Trust Settlement

Group 2018 2017 $000's $000's

Fishing Quota Shares AFL Income Share (8754 Shares)

Parent 2018 2017 $000's $ 000's

8,703 10,054

8,703 10,054

-

-

18,757

18,757

-

-

AFL Income shares are based on the valuation completed by Taylor Duignan Barry Limited, Corporate Finance Specialist during September 2008. The amounts above relate to the amount received on settlement as per Note 12, the Fishing Quota Shares are revalued annually, refer to current valuation in Note 14.

14 Intangible Assets - (Fishing Quota Shares & NZUs) Intangible Assets (Parent & Group)

Parent Group TOKM NZ Units Parent Settlement Fishing Quota Shares

Antons Quota Shares

CRA Quota Shares

Paua Quota Shares

NZ Units

Total Group

2018 Opening balance Additions during the period Disposal during the period Revaluation Gain/(Loss) Balance at 31 March 2018

268 268

9,999 (326) 9,674

453 66 518

2,942 (121) 2,821

1,907 412 2,319

35 268 8 310

15,336 268 39 15,642

Opening balance Additions during the period Disposal during the period Revaluation Gain/(Loss)

-

9,257 743

451 2

2,590 352

1,907 -

22 12

14,226 1,109

Balance at 31 March 2017

-

9,999

453

2,942

1,907

35

15,335

2017

During September 2010, Tūhoe Fish Quota Limited received a one off allocation of 1967 New Zealand Units (NZU's). A further 39 units were received in August 2013, from te Ohu Kai Moana Maori Fisheries Trust relative to the coastline settlement. The NZU's are recognised in the Financial Statements at a fair value being quoted market value in a traded open market. Central North Island Iwi Holding Limited transferred 12,780 NZU's that were attached to 764 hectares of cultural redress land received by Tūhoe on settlement. Quota is valued annually by independent valuation (fair valued less costs to sell). Quota was valued by Quota Management System Limited, an independent broker. The valuation was based on historical and current FishServe data, market intelligence and advice from professional industry valuers. Adjustments were made for current knowledge of market values on certain species. The valuation report was completed on 20th June 2018, on the market value of the fishing quota as at 31st March 2018.

BDO WELLINGTON

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

49


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

15 Cash and Cash Equivalents

2018 $ 000's

2017 $ 000's

1.00% 1.95% 0.00%

463 1,943 2 2,409

1,907 416 5 2,327

1.00% 1.95% 0.25% 1.00%

3,739 374 4,113 6,522

806 10,349 11,156 13,482

2018 $ 000's

2017 $ 000's

3.20%

5,038 5,038

39 39

3.00%-4.00% 3.20%-4.00% 3.20%-4.00%

14,000 4,400 18,400 23,438

7,024 3,300 10,324 10,363

2018 Interest Rates Parent ASB Current Account - TUT ASB Fast Saver - TUT Cash & Paypal account

Group Members ASB Current Account ASB Fast Saver BNZ Current Account BNZ Fast Saver

Total for Group

16 Term Deposits 2018 Interest Rates Parent ASB Term Deposit - TUT

Tūhoe Charitable Trust ASB Term Deposit - TCT BNZ Term Deposit - TCT ASB Term Deposit - TFQL

Total for Group

PARENT & GROUP 17 Investments (Financial Portfolio)

Note

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

8.2 8.3b

AMP $ 000's

2018 FNZ $ 000's

ANZ $ 000's

NZAM $ 000's

TOTAL $ 000's

55,515 -

54,881 -

57,754 -

14,153 (13,723)

2,003 1,866 (282) (286) 58,816

1,739 1,764 (171) (219) 57,994

2,270 2,200 (287) (216) 61,722

(351) 13 (52) 40

182,303 (13,723) 5,661 5,830 (727) (773) 178,572

2017 TOTAL $ 000's 171,622 6,295 5,756 (847) (521) 182,304

Funds are invested under the terms of the Trust's Statement of Investment Policies and Objectives (SIPO) as formulated by the Investment Committee and approved by the TUT Board. The investment portfolio was previously managed by AXA Global Funds, whose business was acquired by the AMP Group and the funds are now under management by AMP Capital. A second investment portfolio is being implemented and managed by First New Zealand Capital. This is a passively managed strategy with investment primarily in market indices. During 2015-16, the Investment Committee recommended diversification strategy. As a result, some funds have been tansferred to ANZ Investment and NZAM (passive fund). During the year, it was recommended by Investment Committee to exit from NZAM. All Managed funds are represented by units an as per the terms of the SIPO. Investments are selected to give a spread to minimise risk while giving adequate returns. The fair value of shares are measured using directly observable market inputs and are not based on quoted prices.

50

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

18 Other Current Assets

GROUP 2018 2017 $ 000's $ 000's

Tax Account Receivables Pre-Paid expenses Accrued Income

18 1 231 250

20 52 72

PARENT 2018 2017 $ 000's $ 000's 18 2 20

12 1 13

19 Property, Plant and Equipment and Intangibles a.i) Property, Plant & Equipment (Group)

$ 000's

Land

Buildings Fixtures & Fittings

Motor Plant & Computer Vehicles Equipment Equipment

Art & Archive

Total

At Cost: Opening balance Additions during the period Disposal during the period Balance at 31 March 2017

3,301 391 3,692

16,618 6,332 22,950

413 32 445

346 156 502

601 97 698

352 22 374

603 603

22,233 7,030 29,263

Additions during the period Disposal during the period Impairment Balance at 31 March 2018 Accumulated Depreciation: Opening balance Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2017

242 3,934

10,366 33,316

22 467

95 (25) 571

9 706

23 397

603

10,756 (25) 39,993

-

611 328 939

144 45 189

153 68 221

210 87 297

192 65 257

158 56 214

1,468 648 2,116

Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2018 Net book value 31 March 2018

3,934

506 1,445 31,871

39 228 239

87 (11) 297 274

86 383 323

46 303 94

49 263 340

814 (11) 2,918 37,074

The land at Ruatahuna received via consolidation has been leased out to Housing New Zealand Corporation and community members who has their houses on the land. Generally these lease agreements are long term agreements with review clause. The Building includes work-in-progress on a building in Te Tii (2017:Te Tii). The payment made towards the work as of the balance date was $11,321,163 (2017:1,053,342) a.ii) Property, Plant & Equipment (Parent)

$ 000's

Land

Buildings Fixtures & Fittings

Motor Plant & Computer Vehicles Equipment Equipment

Art & Archive

Total

At Cost: Opening balance Additions during the period Disposal during the period Balance at 31 March 2017

3,288 391 3,679

15,127 15,127

389 17 406

220 125 345

544 87 631

323 5 328

603 603

20,493 624 21,118

Additions during the period Disposal during the period Balance at 31 March 2018 Accumulated Depreciation: Opening balance Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2017

242 3,921

56 15,183

22 427

95 (25) 415

8 639

19 347

603

441 (25) 21,534

-

611 305 916

142 41 183

130 35 165

188 73 262

183 50 233

158 56 214

1,413 560 1,973

3,921

305 1,221 13,962

36 219 208

63 (11) 217 197

75 336 302

36 269 78

49 263 340

563 (11) 2,525 19,008

Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2018 Net book value 31 March 2018

BDO WELLINGTON

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

51


N OTES T O T HE FI NA N C I A L STAT EM EN T S | b.i) Intangibles - Computer Software (Group)

For the Year Ended 31 March 2018 $ 000's

At Cost: Opening balance Additions during the period Balance 31 March 2017 Additions during the period Balance at 31 March 2018

249 249 249

Accumulated Amortisation: Opening balance Charge for the period Balance 31 March 2017

139 44 183

Charge for the period Balance 31 March 2018 Net book value 31 March 2018

31 214 36

b.ii) Intangibles - Computer Software (Parent)

$ 000's

At Cost: Opening balance Additions during the period Balance 31 March 2017

249 249

Additions during the period Balance at 31 March 2018

249

Accumulated Amortisation: Opening balance Charge for the period Balance 31 March 2017

139 44 183

Charge for the period Balance 31 March 2018 Net book value 31 March 2018

31 214 36

20

Investment Property Papakura Property $ 000's

PARENT Kaingaroa Property $ 000's

GROUP Total $ 000's

530 96 626

1,989 1,989

2,519 96 2,615

530 530

1,863 126 1,989

2,393 126 2,519

2018 Opening balance Revaluation Gain/(Loss) Balance at 31 March 2018

2017 Opening balance Revaluation Gain/(Loss) Balance at 31 March 2017

Investment property is stated at fair value and is not depreciated. The Papakura property was sold on 1 May 2018 and the contract was signed on 30th March 2018. For the reporting year, the asset is report under Current Assets - Held for Sale. The Kaingaroa property was valued by Telfer Young of Rotorua, Registered Valuers at 31 March 2017. The Kaingaroa property has not been valued for the 2018 year as the trustees do not consider it will have materially changed.

52

TĹŞHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

21 Biological Assets Matahi Forestry Rights $ 000's

PARENT Total

GROUP Total

$ 000's

$ 000's

10,738

10,738

2018 Opening balance

10,738

Additions during the period

-

-

-

Increase due to assets acquired through a non-exchange transaction

-

-

-

2,124

2,124

2,124

12,862

12,862

12,862

9,963

9,963

9,963

-

-

-

Revaluation Gain/(Loss) Balance at 31 March 2018

2017 Opening balance Additions during the period Increase due to assets acquired through a non-exchange transaction Revaluation Gain/(Loss) Balance at 31 March 2017

-

-

-

776

776

776

10,738

10,738

10,738

The Matahi Forest was purchased during 2016. The Forestry rights have been valued by PF Olsen Limited from Rotorua at 18 July 2018.

22 Creditors and Accruals Note

Accounts Payable PAYE, Kiwisaver & Student Loan deductions GST Payable HR Liabilities Funds in Custody Te Urewera Board Kaingaroa Timberland Operations 8 Te Maara-a-Te-Atua Marae funds and Grants Te Hui Ahurei a TÅ«hoe Income received in advance Accrued Expenses

17

GROUP 2018 2017 $ 000's $ 000's

PARENT 2018 2017 $000's $000's

1,915 68 (241) 286

589 112 89 217

166 30 127 248

374 61 126 187

250 87 14 414 1 110 2,903

187 81 14 121 140 221 1,771

250 1 29 851

187 49 984

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

BDO WELLINGTON

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

53


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

23 Related Parties Note

GROUP 2018 2017 $ 000's $ 000's

PARENT 2018 2017 $ 000's $ 000's

Transactions with related parties:

Receipts CNI Iwi Holdings Ltd - Distribution of Forestry Land rents Management fees from Tūhoe Charitable Trust Lease from Subsidiries

8.1, 9

-

-

5,547 4

4788 18 18

-

630

172 10,000

137 8,000

Payments Te Urewera Board - Shared Costs Waikaremoana Tribal Authority Charitable Company Ltd Donation to Tūhoe Charitable Trust

Note

GROUP 2018 2017 $ 000's $ 000's

PARENT 2018 2017 $ 000's $ 000's

Related parties include: Trustees and Investment Committee Members of the Trust Directors of CNI Iwi Holdings Ltd appointed by TUT Management team Transactions with Key Management Personnel: Governance Payment Investment Committee Representation Fees Management team (Salaries) No amounts were due and unpaid at balance date. Number of Key Management Personnel (FTE's): Governance Investment Committee Directors in Associates Management team

351 22 3 657

369 24 30 713

162 22 3 383

162 24 12 415

23 5 2 8

23 5 2 8

7 5 2 4

7 5 2 4

The Governance Payments are set fees per annum for the Parent. The Group includes set periodic payments and meeting fees. Investment Committee and Directors payments are based on number meeting they attend.

54

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

BDO WELLINGTON


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

24 Financial Instruments (Financial Risk Management) The Tūhoe Te Uru Taumatua Statement of Investment Policy and Objectives (SIPO) provides parties involved in the investment management of the Trust Fund with a working document that identifies the investment objectives, strategy, constraints and performance measurement criteria for TUT. The Trust Fund comprises two broad portfolios of assets; the Financial Portfolio; and the Closely-Held Asset Portfolio. The Trust Fund is defined in the Tūhoe Trust Deed as “all property that is from time to time held by the Trustees on the trusts of this Deed.” Bank accounts, short term deposits, accounts receivable, investments, accounts payable and advances to associates are financial instruments.

Credit Risk Credit risk is the risk of loss that arises from a counterparty failing to meet their obligations in full and on time. The maximum exposure to credit risk is represented by the carrying value of each financial asset and financial liability in the Statement of Financial Position. Bank accounts and short term investments are all with trading banks with investment grade credit ratings. The Investment Managers of the Financial Portfolio use a multi-manager approach, thereby reducing the exposure to any single manager and counterparty. Assets are held separate to the Investment managers' own assets under trust. The Trustees, in consultation with their investment advisors, have developed TUT's Statement of Investment Policies and Objectives ("SIPO") which stipulates a diversified investment strategy which reduces the credit risk exposure of the Trust.

Interest Rate Risk Interest rate risk is the risk that the value or future value of cash flows from a financial instrument will fluctuate because of changes in interest rates. The Trust has low exposure to interest rate risk on short term deposits which are sensitive to changes in interest rates. Bond holdings are well diversified by issuer and by maturity date.

Foreign Currency Risk Currency risk is the risk of change in fair value of financial instruments due to fluctuations in foreign exchange rates. Currency risks from shares are actively hedged within controlled limits by the Investment Manager. Currency risks from bond investments are generally fully hedged.

Liquidity Risk Liquidity risk represents the Trust's ability to meet its contractual obligations. The Trust evaluates its liquidity measurements on an ongoing basis. TUT generates sufficient cash flows from its activities to meet its obligations arising from its financial liabilities.

Market Price Risk Market price risk is the risk that changes in market prices, such as equity prices or timber prices, will affect the Trust's profit or valuation of net assets. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk. The Trust has considerable investments in a number of Wholesale Unit Trusts that are of a liquid nature. In order to achieve the Trust's Investment objectives and reduce risk exposures the Trustees have allocated these funds across a number of asset classes and applied benchmarks and ranges to further reduce market risk. The Trust also has a significant Investment in CNI Iwi Holdings in terms of the Central North Island Forests Deed of Settlement and therefore there is a concentration of market risk associated with this investment.

Financial Instruments

Financial Assets Loans and receivables Cash and Cash equivalants Receivables from non-exchange transactions Other Current Assets Held to Maturity Term deposits Held for Sale Investment in AFL shares Matahi Forestry Rights Fair value through surplus or deficit Investments (Financial Portfolio) Financial Liabilities Liabilities at amortised cost Accounts payable under exchange transactions

BDO WELLINGTON

2018 GROUP $ 000's

PARENT $ 000's

2017 GROUP $ 000's

PARENT $ 000's

6,522 1,854 231

2,409 1,795 2

13,482 1,599 52

2,327 1,537 1

23,438

5,038

10,363

39

10,054 12,862

12,862

10,054 10,738

10,738

178,572

178,572

182,304

182,304

2,024

589

196

374

TWENTY SEVENTEEN - TWENTY EIGHTEEN | HE KORONA WHAKATAENA

55


N OTES T O T HE FI NA N C I A L STAT EM EN T S |

For the Year Ended 31 March 2018

25 Capital Management The Trust's capital includes Fixed Capital, Retained Earnings and Fair Value Reserve. The Trust's policy is to maintain a strong capital base so as to sustain Iwi and Tribal Development to provide benefits to its various Hapu (Marae Groups) and individual beneficiaries. The Trust is subject to externally imposed capital requirements under the Central North Islands Deed of Settlement and CNI Iwi Holdings Trust Deed and Shareholders' Agreement. These agreements limit the ability of TUT to dispose of its beneficial interest in Central North Island Forest Land for a period of at least 10 years. The Group's policies in respect of capital management and allocation are reviewed regularly by the Board of Trustees.

26 Operating Leases The Trust has operating leases for office equipment The total value of minimum lease payments is due as follows:

Not later than one year Later than one year and not later than five years Later than five years

27

2018 Group Parent $ 000's $ 000's 11 11

2017 Group Parent $ 000's $ 000's 5 5

38 42 81

19 19

Commitments and Contingencies The Board moved a resolution for further investment in Tribal. There was approval of $9.8M (PY 9.03m) funding to be invested in coming years on tribal projects. These projects include ongoing support to the community health centre, four new buildings for Tribal, Tūhoe Marae upgrade project and Tribal Spatial Planning Priorities and Capacity building. The Matahi forestry rights purchase was an agreement with Crown Forestry established to return crown forests under a treaty settlement. In 2008, the Crown purchased 20 years forestry rights over the Matahi trees owned by Matariki Forests. The underlying land was a subject to a complex grievance dating back to the original purchase by the Crown in 1896. Under the term of the agreement, during the twenty year term of the forestry right, the Crown may purchase the other interest in the property. The Crown's option to purchase the land is assignable to Te Kotahi a Tuhoe, the Tuhoe entity mandated for Treaty negotiations. The land and the forest were claimed by the Waimana hapu. There were access difficulties into the forest. Ngati Manawa has gone back to court to argue that the adjudication did not properly allocate Kaingaroa. The legal fees that will arise as a result of this are unknown.

28

Contingent Asset One of the Investment funds, Managed by FNZ, invested in US based Funds and have deducted 30% withholding tax on this income. Under the DTA the Trust is only required to pay tax of 15% on the income. As a result, a US tax return will be filed to claim this tax refund from IRS. It is expected that this refund could be around $300,000. No provision has been made for this in the financial statements.

29

Events after Balance Sheet Date The papakura property that is classified as available for sale was sold on 1st May 2018, which $623,744 of funds were received. Tūhoe Charitable Trust has entered into a sale and purchase agreement to purchase Te Manawa o Tuhoe Forest (trees) during the month of September 2018. The estimated purchase value of the forest is 18M.

56

TŪHOE - TE URU TAUMATUA | TWENTY SEVENTEEN - TWENTY EIGHTEEN

BDO WELLINGTON


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