He Korona Whakataena 2018-2019

He Korona Whakataena twenty eighteen - twenty nineteen

Contents Te Mana Motuhake MataemateÄ one Permanency

Financial Statements

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13

21

29

He Tanata Whakamoe Tau He Iwi Whakamoe Tau E te wairua poke tukua anō au kia tiaho. E kore ahau e mahue tapuae, e kore hoki ahau e whakamau tarawatia i a koutou tõku rapa māori kua rūpeke atu nei ki Te Ahoaho o Tūkapua.

Ko te whare rā tēnā o tõ koutou tipuna o Hine- Pukohu-Rani.

Murua te mamae - hōmai he tāna manawa.

Otia te mauāhara - hōmai te ihi whitiora.

Peia te whakamā - hōmai he nākau koihotahota.

Kai tua o huakipōuri, kai kō o wherūtana te kārohirohi.

E te iwi kia ora

E nā kākano o te taunke o te hue o tēnei tanata o Tūhoe tēna koutou.

Tēnā koutou katoa nau mai haere mai ki tēnei huihuina whakamoe tau tahito whakaara tau hou a tātau.

Koutou i haere tawhiti mai, hoki mai rā kia pūreitia anõ koutou e te hau kāina, ki o tātau pākeke tēnā koutou whakapiri mai whakatata mai.

E whai ake nei ko nā pūrono kõrero e pā ana ki nā mahi o te tau 2019 a te iwi o Tūhoe ara a nā Taraipara e whā e nanaiore nei ki te whakakotahi whakaaro whakakotahi i te kōrero mo, Te Waimana Kāku Waikaremoana Manawarū Te Komiti o Runa.

Kai konei hoki ko te pūrono pānui mahi a te tari a te iwi, Te Uru Taumatua.

Ka tika me whāki kia r ono kia k itea e koutou e te iwi nā tāeatana nā wherūtana, te ine I te rōana tawhiti o tā tātau whakatata atu ki te wāhi tika.

Ko te ranona tēnei mā ētahi o koutou i nā uauatana me nā kaha o te iwi ki te ana whakamua i te mutuna he pono, rānei he kore pono ka puta.

Kua iti rawa atu te wāhi ki te Karauna i roto o nā whakatauna kaupapa mo Tūhoe.

Ko tātau tēnei e whakamātautau nei i a tātau tonu, e kite pono ana i tō tātau āhua i aia nei me te hotõ ki te Tūhoetana ki te Mana Motuhake o Tūhoe.

Ko ōna mātāpono pūmanawa ēnei te, nākau iti, te tanata marae, te ihi, te puku manawa, te ranatiratana, te tukuroa, te matemateāone, te pono tika.

Heamana Tūhoe - Te Uru Taumatua 2019

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

As we approach Summer,

life reawakens within

Te Urewera,

we are reminded that it is a time of revival – and vulnerability.

We embrace a collective shift in consciousness.

The seasons and moons give us a sense of true time, life in sync with nature…

The fires of our ancestors knew how to burn through the seasons of Te Urewera with purpose, when to spark, when to smoulder when to flicker and when to blaze!

Anei anō tātau e kakape ana I te ahi kā roa kia matamura, kia mata kakā

!

We are now five years into our post settlement reality. On a path that we have not walked before. Exuberance and enthusiasm has now been allied with a sense of scale and difficulty. Learned from the new opportunities and challenges never experienced before, experiences that only come from rolling up the sleeves and doing the mahi. Lessons are being learned quickly but we are out of practice, and we are impatient! We ask of each other both resilience and conviction –

Kia pūmau tātau e hoa mā

ā

Te Mana Motuhake requires that we are the builders of our future.

Who will give the care and attention required? Who really knows the ronoā for our despair? Who will teach us Matemateāone and Tūhoetana? The answer of course is you and I. The examples are there, shown to us by our tīpuna.

But we must be honest with each other, we must be true to each other and let Tūhoetana be the standard that guides us.

Kia ū tonu tātau e hoa mā!

He Korona Whakataena 2018/2019 serves as a reminder of the collective revival efforts of your Tūhoe Tribals and Iwi Tari to our commitment and accountability to our tikana and to each other.

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Te Mana Motuhake Responsibility

Many will describe responsibility as the key principle of Te Mana Motuhake. Taking responsibility for what is right. Leading by actions, or “walking the talk”.

Not waiting to be told what to do – just doing it!

In this Tūhoe future that we are building, we must not wait for someone else to save us, we aren’t seeking out consultants to tell us how to be Tūhoe, we are simply asking ourselves the hard questions and demanding of each other truthful answers and actions. This is the only way for us to grow, build capability, and earn each other’s trust and confidence.

It is our responsibility to Te Urewera, our tikana and our kinship that will bring to life Te Mana Motuhake o Tūhoe and the permanency of our long burning fires!

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

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After 100 years,

a Tūhoe presence returned to Lake Waikaremoana.

For the first time, Tūhoe had the opportunity to welcome and engage with boaties, anglers, hunters, trampers, campers and international visitors. We began offering a water taxi service, issued skipper licensing, and recruited hut wardens. Tūhoe kaitiaki stationed at huts were tasked with caring for manuhiri as they explored Te Urewera.

As tanata whenua they kept the huts clean and tidy, collected firewood, shared relevant meaningful kōrero and reinforced new standards with manuhiri.

Manuhiri experiencing Te Urewera say they are grateful for the chance to meet these faces of Tūhoe that have been kept out of sight for so long.

d members, Tuhoe boar d an er ti Krug for Matua Tama thank you Kia Ora, w want to Te Urewera lo be ed list the of d the men nerously managed Myself an governance ck so ge ba ve g u’ in yo iv ce re e the way nc sources si forest re ral lands. st ve ce an your s and I ha my friend kai from the of e os th s. whanau, lies with many year Like your supplied our fami lands for ilege and ic d bl an pu ed a priv hunt ewer the Te Ur ys been a lable bounty of that this has alwa at privilege avai th e ve ha l il We realis eful to st we’re grat . ere were to us sition th o ance tran wh rn s ve ve go el be e time of like ours ss would During th s pakeha hunters ce ac d ue ve in ha ou nt u rv co yo ne r many whethe ther that re about agree toge ders in the way we were unsu t Bu alan to us. all New Ze whenua. To allow available nerous to us ge io ec ry pr to your ve is been d th ued access this ve manage ve contin r ha Fo that you’ to u. yo rs We alande ious of for this. all New Ze nds is very grac la thank you l y ra sa st to ce t. an nt simply wa as of righ reason we it for granted or ke ople and don’t ta a, it’s pe eryone er ew Ur Te for ev that the a blessing we trust ue to be Like you in nt co will resources come. tions to for genera Signees: ga. y- Tauran Peter Care g- Te Puke. on Noel Forl d- Papamoa. oo ane.

Dave Harw er- Whakat Peter Fost - Tauranga ow tt inue to kn Paul Devi y you cont your whanau Ma . es li mi ad ateful fa as you le And our gr d wisdom of God an e the grac future. osperous into a pr , Gratefully l al Craig Vern

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

The Short Story Made:

$28.4m

Investments, Subsidiaries, Operations

Used:

$12.1m

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

Available:

$16.3m

Tribal Development, Infrastructure Projects, Reinvestment

Twenty Eighteen - Twenty Nineteen

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Tūhoe ranatahi took up the role of being responsible tanata whenua, become involved in local emergency services and signed up as members of the Wairoa Search and Rescue. One ranatahi went on to participate in a rescue of an injured manuhiri at Waikareiti.

A Healthy Living Materials hui was held In August, hosted by Tūhoe, inviting those that share the same principles of care for the land to showcase innovative and sustainable building practices. Tūhoe hapū and Tribals had the opportunity to take away ideas and practical awareness for their own aspirations for village and building reinvigoration.

Registered Tuhoe

10,479

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

I Ruatāhuna ko te mahi nui i tēnei tau he whakaara i ngā hapū o te wā kāinga kia mahi tahi, ā hapū nei, ā mārua nei. Koinei te mahi nui e wānangahia ana i te kāinga i tēnei wā. I tīmataria ai ngā whakawhitinga kōrero i te pito o 2018, tae atu ki te pito o tē tau nei, kāre tonu anō kia āta tatū, kia āta whakatau noa. E pai ana ka haere tonu ngā mahi whakapiki i te ora ki roto i a Ruatāhuna kia tū tangata, kia tū toa!

Kia tū i runga i te whakaaro nui o ngā hapū o Ruatāhuna koinei tana huarahi ki te ora!

Waikaremoana ranatahi undertook governance training to fulfill future marae-hapū roles.

A group of eight graduated with restricted licenses to improve their workforce readiness for local work opportunities.

Whānau learned about safe firearms practices by participating in the Whakatūpato training at Te Kura Whenua. Waikaremoana Tribal has ten new gun license holders with an appreciation of hunting in Te Urewera as a privilege, not a right.

We embedded Care for Nature standards and welcomed respect, humility and responsibility by those who accept and address their own impacts on Te Urewera. Te Kawa o Te Urewera helps us to understand our human impacts.

Making progress toward the 40 year housing vision for Tūhoe, the Tribals and TUT designed and delivered a housing repairs pilot programme.

It began addressing the backlog of deferred maintenance and housing neglect, starting with whānau most vulnerable and in need of assistance. Tribals developed standards for eligibility assessment, contribution and responsibility. Key to this has been understanding what vulnerability is, what it is made up of, vulnerability being the thing to fix.

These standards can only be handmade.

The second pilot in 2020 will build on lessons learned, including vulnerability assessment, linking iwi contribution to whānau contribution, debt that is realistic and not a hardship for whānau. Budgeting and home maintenance learning, and careful cost management of repair work will also be implemented.

New Registrations

Online 283 Physical form 371

Twenty Eighteen - Twenty Nineteen

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In June 2019 the concept of Natures Road came under fire from Minister Shane Jones who was campaigning to have part of the Ruatāhuna, Waikaremoana road tarsealed for the purpose of economic growth and ease of use, labelling Tūhoe ‘Hillbillies” in their nature based approach.

This did not hinder the progress of this trial.

The trial for creating a road that limits impacts upon nature but also robust enough to withstand the rigours of traffic and the elements seen in Te Urewera has been underway for nearly 2 years. Two places were picked, a stretch of road at Manaone, Pāpueru and Rosie Bay at Waikaremoana. These two locations representing different extremes that the road would have to resist. The trial has shown the binder to be working well, dust suppression is improved and there has been low pot hole formation. Our tamariki of Ruatāhuna have also been monitoring the road and could be seen as tomorrow’s experts based on the experience they are gaining. Discussions with NZTA have confirmed their support.

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Though on the surface a large undertaking, our learnings of roads, infrastructure and the natural resources that could be used to create tall oil pitch road will be invaluable as we continue to take responsibility for our impacts upon Te Urewera.

Our Marae

with the highest new registrations are:

Te Kūhā Tārewa 93 Rewarewa 71

The development and design of the 1st Tūhoe Eco Village began. Based on the idea of returning to a collective/hapū style of living but modernised to suit today and tomorrow’s world. Concept draft designs have been shared and community members have been involved in the creation of draft standards for the Village with Building and Infrastructure to be completed in 2020.

Guided by principles of kinship, sharing, contribution and responsibility, Tūhoe people, kaimahi and architects have attempted to peer into the future of Tūhoe living practices and design the building blocks to help that future a reality.

2019 helped us be clear on the following challenges to work through as 2020 approaches; • Because we have had to assume the western framework of living and housing practices, are we brave enough to return to our more natural way of living together?

• For this kaupapa to be successful we must broaden our sense of value to not only being a financial one. Do we see the value of self-sustainability? The value of sharing?

The value of social justice and caring for each other? - Contribution to future generations.

• An hapū Eco Village built on the concepts of the Living Building Practices has never been done before. Do we have the courage to believe in something that we have not seen and change our perceptions of how we live in this inherited way of living?

• Are we honest enough to see that many of the social problems that we face can be directly connected to how we currently live, causing disconnection, and that a collective way of living could be an intergenerational remedy?

Twenty Eighteen - Twenty Nineteen

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Matemateaone

Connection

We know that our connections to the whenua and each other hold the key to our wellbeing. A well-being that is measured in aroha, generosity, and sharing.

That intangible feeling that tells you, you have a place, you have purpose, you are a meaningful part of something special and you are loved!

We are recalibrating our measurement of well-being, our Tūhoetana affirms that we re-learn to live our lives in a way that is neither entitled nor disconnected.

Your Iwi is mindful to not recklessly adopt modern catch phrases like “economic growth” or “return on investment” as propaganda for long term solutions or measurements of success. Material assets that serve us are not placed above the whenua, tāona and people we serve. Our connections to the whenua, taiao and to each other have been the pillars of our Tūhoetana and the fuel for our ahi kā roa.

Twenty Eighteen - Twenty Nineteen

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In Waikaremoana real progress was made with the Ngāti Ruapani Treaty Claims that have divided Waikaremoana for too long. The Ngāti Ruapani mai Waikaremoana Negotiation group has received the support of the Taraipara and Iwi tari, with the contributing factors being our whakapapa to each other and the desire to see Waikaremoana heal. What is good for Waikaremoana, is good for Tūhoe. After two years of sustained effort the group’s mandate to negotiate the remaining Waikaremoana claims was formerly recognised by the Crown in October 2019, a significant milestone on this hīkoi. This allows the group to move into formal negotiations with the Crown, new territory for any Ruapani entity. The main driver remains, mending the broken relationships of the families of Waikaremoana.

Te Urewera Home-grown Home-made markets held throughout the year gave opportunity to share and contribute to community spirit, strengthening our sense of belonging. These events were held in Te Uru Taumatua carpark and aimed to inspire positive lifestyles by connecting whānau and softening our impact on the earth.

Seasonal school holiday programmes in Spring and Autumn saw our tamariki replace TV, mobile phones and play stations for trapping possums, skinning deer, and kai gathering activities to help instill knowledge, and good practices to grow leadership.

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Housimg Repairs Homes Assessed

29 Tribal Repairs

13

Repair packages

Approved

Repair packages proposed 10

Repairs delivered 10

Te Komiti o Runa

1

1

Te Waimana Kaaku

4

1

Waikaremoana

1

1

16

13

Manawarū

Total

LBC principles

were applied to all housing repair work

12

Houses were insulated

Twenty Eighteen - Twenty Nineteen

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The design of four future-focused eco buildings were completed based upon the concepts of: • Hapū Eco Village Projects • Venison processing abattoir • Visitor experience accommodation • School in the bush The Rūātoki Bushcrew comprising of Tūhoe bushcraft practitioners gave a sense of belonging not only through the lense of operations but the connection of what responsibility means for a Tūhoe future focus in Te Urewera. The Waikaremoana Operations team and Rūātoki Bush Crew united to walk the whenua, share resources and knowledge, build capability as well as learn about each other’s priorities and how they plan to carry the mahi out.

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Living with Te Urewera photo competition aimed to ­rebuild our sense of admiration and knowledge for Te Urewera. It provided a fun avenue for people to reconnect and share their love for Te Urewera through photography captured through the eyes of tamariki, taiohi and pakeke.

I tae a Ruatāhuna ki te whakāro me tohaina ngā mahi o te taraipara ki ngā hapū mā rātau hai whakairo ake i te rautaki whakaaro anga whakmua. Me te aha? Kua kaha kē atu te whakahuihui a ngā hapū i a rātau ki te wānanga i ngā kaupapa hira o te mārua. He hikoi whakamua tino nui tēnei. I ngā tau ka huri ki muri tino, ko ngā taraketi noa iho e whakarite ana i te ara anga whakamua. Kai te uru mai ngā ringa wera, ngā kaikaranga , kai whaikōrero, ngā whānau ki roto i ngā kōrero, ka pai! Ko ngā huihuinga a ngā hapū e tuwhera ana ki te wā kāinga. Mehemea e hui ana a Ngāti Tāwhaki, kua karangahia ngā hapū kia tae ake ki te tautoko ki te āwhina. Mēna nā Ngāi Te Riu te hui pēra anō.

Ko te tūmanako ia ka kite ai a Ruatāhuna kai kona te kaha, kai roto i te mahi tahi, te kōrero tahi, te kai tahi, te whātōtō tahi. Mā roto mai i te pēnei e tino kite ai te hua o te kōrero, te matemateāone tētahi ki tētahi. Hai tā Te Rangihau ko tā te kotahi he manaaki i te katoa, ko tā te katoa he manaaki i te kotahi.

Whānau of Waikaremoana turned out to enjoy a whārua hākinakina day of netball, touch and tennis in March. Friendly competition between whānau was enjoyed across generations and pulled whānau back to Waikaremoana.

New Registrations

by Tribal 120 138

262

134

Twenty Eighteen - Twenty Nineteen

Rūātoki Ruatāhuna Waimana Waikaremoana

| He Korona Whakataena

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Tūhoe and Orana Tamariki begin working together. Our understanding and despair finds that the instinct and responsibility of caring for each other has been heavily eroded.

Whānau, hapū, Iwi - the very institutions where Tūhoetana is practiced, celebrated, transmitted and shared was repressed for generations.

Nowhere was this more widely felt than in the growing number of Tūhoe tamariki in state care.

On the ground we see this impact with the growing numbers of Tūhoe tamariki in care.

Through Orana Tamariki we learned there are around 200 Tūhoe tamariki in state care, with a further seven tamariki coming under watch by the state each week. The need to bring care to tamariki who are suffering and families that are hurting led to our collaboration with Orana Tamariki. Our agreement reached with Orana Tamariki signals our common ground and our overdue commitment to our children.

Tribals collectively called for an immediate Iwi rescue to the methamphetamine crisis, which saw the Iwi working with the Police and the BOPDHB to develop a meth reduction strategy.

The ‘We need to Talk about Meth’ event brought together hundreds of whānau looking for answers and support, and to share their stories and solutions for addiction. This triggered a wide and urgent response of offering oneon-one support and referrals to any whānau wanting to break free from their addiction.

The lodge and land at Te Houhi was purchased, offering a place for respite for whānau wanting to recover from addiction.

Twenty Eighteen - Twenty Nineteen

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Permanency Justice

Our Tūhoetana, and our tikana has been our justice system, the system that has kept order in Tūhoe communities for centuries. Shaped and contributed to by every generation of Tūhoe. No Police, Lawyers, Judges or Prison only kinship and honesty. Our ability to interact in this manner is fading. How do we rebuild this respect?

How do we rebuild this honour? How do we rebuild this mana? How do we rebuild this instinct? How can we abide by tikana if we don’t know it? If we don’t know it, how can we uphold it? If we don’t uphold it, how will our tamariki learn? What will be the outcome? Our mahi must be founded on our sense of justice, this is what we have challenged each other to do and hold each other accountable for.

Twenty Eighteen - Twenty Nineteen

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Art and literature in Te Wharepuri celebrates, expresses and promotes Tūhoetana to creatively showcase our history, and to ensure the message of permanency carries on for future generations.

Relationships were established with Bay of Plenty Regional Council, Whakatāne Council, Te Uru Taumatua, Hapū/Marae, land owners and land trusts. An increase in activity to support flood restoration and roading issues due to flood erosion and slips, all were overdue for repair from floods in 2017.

Kai te rawe te mahi tahi a TKOR me TUT, kai reira nā kaimahi me nā āwhina ki te tautoko i nā mahi a te Taraipara.

Ko tētahi atu o nā mea āhuareka ko te hokina mai o Te Houhi, ā, ko te whakaaro i tēnei wā ko te whakahaere i nā kaupapa āwhina i nā whānau e pēhia ana e raruraru pērā i te nānara P, tarutaru hoki. Ōnukurani completes rat knockdown and gains insight into how a knockdown can be achieved with minimal use of toxins and use of the more humane and sustainable A24 traps.

Total Pests trapped & killed in Te Urewera 5,361

Possums, Stoats & Rats

10,658

TOTAL Traps Baited

22

16,032 283

119,901

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Great Walk Waikaremoana Total Bednights

Booked Bednights

24,310

12,986

Great Walk booking methods Online Bookings 1,852

41k

Te Kura Whenua 60

DOC Visitor Centres 12

Agents 10

Opening Day Revenue Bookings opened for the WaikaremĹ?ana Great Walk on the 14th of June 2019

Twenty Eighteen - Twenty Nineteen

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The hunters hui held in April bought to light concerns of bad behaviours and practices in recent years. Whānau looked at solutions to how we can start to address these problems so that care and aroha can be reignited for Te Urewera.

Tribal and Waikaremoana Pig Hunting Club collaborate in the delivery of a Kiwi Aversion training. A ‘Care for Nature’ campaign is developed with TUT and introduced to manuhiri over the summer season at Waikaremoana.

A Waikaremoana approach to minimising waste in the homes is actioned through the Hanarua series for local swap opportunity and sustainable alternatives to plastic.

The Mending Room, an alternative to the court system, provides time and space to mend. We have learned that the mends are sometimes small and other times require intensive and long term help. The care by whānau, hapū, Iwi and the community sometimes does not exist in their lives. We’re learning that people, time and care are enablers of mending and these things need to be reconnected.

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Te Urewera Statistics The most visited Tribal Area

Waikaremoana Total number of

Permits issued

2378

3253

Kaupapa volunteers are

Removing pine seedlings, rodent control, rubbish removal, hut cleaning, moving stoat traps.

As both Ruatāhuna and Waikaremoana get set to open their Medical Centres the Kawerau Medical Centre was purchased. Their capacity to provide skilled management and administration will help establish and improve our Tūhoe Medical Centres standards for long term sustainability.

All 57 of Te Urewera Huts were assessed in Te Urewera. The research gathered will give the understanding required to determine the purposefulness of the huts, how they affect Te Urewera and her natural climate, the relevance to Tribal Priorities, the relevance to our standards of manāki manuhiri and any maintenance required.

The top 5

Intentions

Hiking & Walking 939

Camping 827

Te Urewera Huts Ruatoki

Ruataahuna

Fishing & Eeling 681

12

Waikaremoana

12

Hunting

461

Waimana

12

21

Being with 173 nature

Boating, reconnection, bushcraft, alone time, horse riding, relaxing, food gathering, history, search and rescue training, filming and fitness.

Twenty Eighteen - Twenty Nineteen

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w He i

i kotahi,

tikana kotahi e H huna kot He a ahi

TRIB AL PRIOR

S

in t

Priorities

Blu

385m

ITIE

epr

Trust Fund 2019

TUhoe CHARITABLE Trust

TE KOTAHI A TUHOE TUhoe FISHERIES TRUST

TUhoe Establishment Trust

TUhoe FISHERIES QUOTA LTD TUhoe WAIKAREMOANA MAORI Trust BOARD

The trust fund is made up of Tāona and assets. Tāona are those things that are precious, priceless and irreplaceable to us 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.

Trust Fund Total Assets

400 350

2019

300 250 200 150

123 131 127 134 254 301 329 348 365 386

50 0 Mar

Mar Mar

Mar Mar

Mar Mar

Mar Mar

Mar

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Trust Fund

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

100

Millions

The 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 open growth opportunities for current and future generations. 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.

How did we protect the Trust Fund for future generations?

How did we grow our investments?;

• Receiving expert advice

• Following sensible

from our independent Investment Committee.

• Diversifying our capital

in several ways between different types of investments in New Zealand and overseas.

• Using a combination of

direct investments and professional investment managers.

• Regularly monitoring and

testing our assumptions and options.

How have we stayed on track with our long-term goals?

• Being conservative with

how we applied our capital in recognition that we are entrusted with protecting legacy wealth for future generations.

• Managing the balance

between short-term operational requirements and long-term investing objectives.

• Taking profit from

investments that had risen beyond long-term average expectations and then recycling those profits into new investment opportunities such as the Te Manawa a Tūhoe forestry venture.

• 2013 - FNZC (Jarden)

allocated 1/3rd of the financial portfolio balance as a passive mandate, AMP retains 2/3

investment strategies.

• Investing in some of the

world’s most profitable property and technology companies in 2018-2019.

• Having regard for cost

efficiencies so our investing expenses remained low.

What are we preparing for?

• Future direct investing opportunities.

• Creating skill and capability within Tribals for increased participation within the investment process.

• Volatility following a near

unprecedented duration of share market appreciation.

Balances as at 31 March 2019 were: AMP - $56.5m | ANZ - $60.5m | Jarden - $57.1m There is also $30,000 balance with NZAM, due to an illiquid asset from a previous $15m investment with them.

A brief history of the financial portfolio:

• 2010 - AXA (AMP) appointed as the single manager (coreactive mandate)

• 2014 - NZAM allocated

$15m running an absolute returns strategy

• 2015 - ANZ appointed

alongside AMP to manage the core-active mandate

• 2017 - NZAM position exited

- their aim for market upside participation while providing downside protection was not being achieved.

All managers are targeting a 4% real return. AMP are running a 60/40 growth/ income strategy and ANZ a 50/50 strategy. Both are core active. AMP attempt to generate alpha (parameter to compare how much more than the benchmark) by allocating to infrastructure and emerging markets. ANZ leave such market and sector specific allocation decisions to the equity managers and as such run a more vanilla (and lower fee) strategy. Jarden operate a close proxy to the AMP strategy but at a passive level.

Term Deposits 6% Financial Portfolio 45% Fishing Quota 4%

Trust Fund 2019

AFL Shares 3% Fixed Assets 11% Forestry Rights 8% Receivables 1% CNI Share 21% Bank 1%

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

27

28

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Our challenges and where improvement is needed in 2020 During the period of battle with the crown and the Tūhoe fight for its whenua and rights, the enemy was clear as were our roles and what we had to do. In this post settlement era we have only ourselves to contend with. For some of us it has been a struggle to trade in the taiaha and patu for love and understanding. We insist on fighting each other. We must rest from being warriors, and learn how to be better house builders.

Throughout the Iwi structure we are still grappling with our roles.

Whether as governance, manai/delegate hapū member or kaimahi.

By knowing our roles better, we would be able to limit wider Iwi frustrations and hasten advancement. Though we have been patient with each other in this establishment phase, we need to ensure that if we are in governance roles, we are raising our eyesight to the highest levels of care. If we are hapū manai/delegates, we are conveying a hapū view, not individual views. If we are hapū members, we are participating and contributing not just throwing stones from the side. If we are kaimahi, we are not overstepping the mark and know our place.

The relationship between Te Waimana and the Iwi Tari is not where it needs to be. Relationships are strained and at a low. Though there have been efforts to reconcile, positivity is yet to manifest.

The difference in opinion on what progress and responsibility is remains the kaupapa to unify upon. We expect in 2020 we will overcome this disconnection.

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

29

30

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

Financial\ Statements

BDO WELLINGTON

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

31

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

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

32

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

34

36 37

38

39

40

BDO WELLINGTON

Trust Directory as at 31 March 2019 Objective of business 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.

BDO WELLINGTON

Trustees

Tribal

Tāmati Kruger Patrick McGarvey Martin Rakuraku Ryan Te Wara Devlin Tuhi Taoho Ngātai Rangihau Lorna Taylor

Rūātoki Rūātoki Waimana Waimana Ruatāhuna Ruatāhuna Waikaremoana

Address 12 Tūhoe Street Tāneatua

Auditors

BDO Wellington Audit Limited 50 Customhouse Quay Wellington 6011

Bankers

ASB Bank Westpac Bank BNZ Bank

Solicitors

David McLay Daveys Burton Bell Gully

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

33

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 2019, 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 2019, 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 carried out other assignments for the Parent and Group in the area of taxation advice. Other than the above, in our capacity as auditor we have 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 a 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.

34

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

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 29 October 2019

BDO WELLINGTON

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

35

Statement of Comprehensive Revenue and Expense |

For the Year Ended 31 March 2019

Note Revenue Operational Income Other Income Total Revenue

GROUP 2019 2018

PARENT 2019 2018

$ 000's

$ 000's

$ 000's

$ 000's

4,460 7,250 11,709

3,269 7,304 10,573

6,552 6,458 13,010

6,902 6,311 13,213

6 6 6

6,419 909 3,960 11,288 422

5,012 712 4,138 9,862 711

3,735 428 6,639 10,802 2,207

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

9

11,531 11,953

6,119 6,830

2,207

(4,157)

8.3 8.3 9 20 21

9,266 (510) 20,709 236 20,474

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

9,266 3,022 775 15,271 987 14,284

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

869 21,343

39 15,065

14,284

3,527

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) TĹŤhoe-Crown Treaty Settlement Gain/(Loss) on Revaluation of Financial Portfolio CNI Taxfree Distribution Gain/(Loss) on revaluation of Investment Property Gain/(Loss) on revaluation of Forest Rights 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

10

14

The accompanying notes form part of these financial statements

36

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

BDO WELLINGTON

Statement of Changes in Equity |

For the Year Ended 31 March 2019

Note Retained Surpluses Opening Balance

GROUP 2019 2018 $ 000's $ 000's

PARENT 2019 2018 $ 000's $ 000's

115,026

100,000

49,240

45,713

21,343 21,343

15,065 15,065

14,284 14,284

3,527 3,527

14

(869)

(39)

-

-

13

(869) 135,500

(39) 115,026

63,525

49,240

13

242,783 242,783

242,783 242,783

224,026 224,026

224,026 224,026

14

2,079 869 2,949

2,041 39 2,079

-

-

11

381,231

359,888

287,552

273,267

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 Eighteen - Twenty Nineteen

| He Korona Whakataena

37

Statement of Financial Position |

For the Year Ended 31 March 2019

Note Trust Equity

Group 2019 $000's

2018 $000's

Parent 2019 $000’s

2018 $000’s

381,231

359,888

287,552

273,267

5,194 22,739 2,754 55 459 1,560 32,762

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

2,352 3,039 2,494 5 1 1,481 9,374

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

39,381 11 16,511 1,989 30,467 174,196 10,054 -

37,074 36 15,642 1,989 12,862 178,572 10,054 -

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

80,201 352,810

75,173 331,402

19,482 11 327 1,989 13,638 174,196 53,425 18,193 281,262

266,160

385,572

365,024

290,636

276,280

2,043

2,974

788

851

2,043

2,974

788

851

2,297

2,161

2,297

2,161

4,341

5,136

3,085

3,013

381,231

359,888

287,552

273,267

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 22 9

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

Total Assets Less: Liabilities Current Liabilities 23

Creditors and Accruals under exchange transactions

Non-Current Liabilities 10

Deferred tax Liability

Total Liabilities Net Assets

Trustee

29 October 2019

Trustee

29 October 2019

The accompanying notes form part of these financial statements

38

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

BDO WELLINGTON

Statement of Cash Flows |

For the Year Ended 31 March 2019

GROUP 2019 2018 $ 000's $ 000's

Note

PARENT 2019 2018 $ 000's $ 000's

Cashflow from Operating Activities 3,744

Receipts from operational and other income

Dividend Income Payments to Staff and Suppliers

3,490

1,760

1,970

338

338

-

-

(10,591)

(7,145)

(6,274)

(6,897)

Investment income received

6,500

6,310

6,135

5,916

Donations Paid

(375)

(650)

(4,000)

(10,000)

Income Tax (Paid) / refunded

(733)

577

(741)

583

18

(18)

(18)

(18)

(1,099 )

2,901

(3,138)

(8,446)

6,503

4,660

6,504

4,660

-

-

-

-

Purchase of Property Plant Equipment & Intangibles

(3,468)

(10,741)

(1,005)

(429)

Investments made - Term Deposits and Managed Portfolio

14,803

(3,781)

15,581

4,296

GST (paid)/recovered Net cash (used)/generated from operating activities Cash flows from Investing Activities Distribution received - CNI Iwi Holdings Ltd Crown Settlement

Purchase of Te Manawa forest Net cash (used)/generated from investing activities

(18,067)

-

-

-

(229)

(9,861)

21,080

8,527

-

-

(18,000)

-

Cash flows from Financing Activities Advances paid Net cash generated from financing activities

(18,000)

Net increase/(decrease) in cash and cash equivalents Opening Balance Cash and cash equivalents at balance date

BDO WELLINGTON

15

(1,328)

(6,960)

6,522

13,482

2,409

2,327

5,194

6,522

2,352

2,409

Twenty Eighteen - Twenty Nineteen

(57)

82

| He Korona Whakataena

39

Notes to The Financial Statements |

For the Year Ended 31 March 2019

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.

40

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

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

Notes to The Financial Statements |

For the Year Ended 31 March 2019

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 Eighteen - Twenty Nineteen

| He Korona Whakataena

41

Notes to The Financial Statements |

For the Year Ended 31 March 2019

(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

Te Urewera Oversight

Trustees majority appointed by TUT

66.67%

31 March

No

Investment

26.31%

12.50%

31 March

Te Urewera Board

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.

The Te Urewera Board is a Special Purpose Enitty established by the Te Urewera Act 2014 and was set up to manage and govern Te Urewera.

(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.

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.

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:

The following specific recognition criteria in relation to the Group’s revenue streams must also be met before revenue is recognised.

• It is probable that the associated future economic benefit or service potential will flow to the entity, and • Fair value is reliably measurable.

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.

Volunteer services received are not recognised as the fair value of the services are not able to be reliably measured.

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.

42

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.

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

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.

BDO WELLINGTON

Notes to The Financial Statements |

For the Year Ended 31 March 2019

The following specific recognition criteria in relation to the Group’s non-exchange transaction revenue streams must also be met before revenue is recognised.

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.

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.

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.

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 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

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.

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.

The Group derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire.

Upon derecognition, the accumulated gain or loss within net assets/equity is reclassified to surplus or deficit.

BDO WELLINGTON

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.

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

43

Notes to The Financial Statements |

For the Year Ended 31 March 2019

(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.

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

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.

44

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

(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.

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

(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.

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

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

BDO WELLINGTON

Notes to The Financial Statements |

For the Year Ended 31 March 2019

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.

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.

ii. Reclassification to investment property

v. Depreciation

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.

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.

Any gain or loss arising on remeasurement is recognised in surplus or deficit. 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.

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.

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

45

Notes to The Financial Statements |

For the Year Ended 31 March 2019

(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.

(l)

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.

46

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

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-cash-generating 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.

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.

BDO WELLINGTON

Notes to The Financial Statements |

For the Year Ended 31 March 2019

(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.

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 Eighteen - Twenty Nineteen

| He Korona Whakataena

47

Notes to The Financial Statements |

For the Year Ended 31 March 2019

6 Expenses include Note

GROUP 2019 2018 $000's $000's

PARENT 2019 2018 $000's $000's

Direct Costs: Governance Costs

256

377

172

186

4,003

3,171

2,450

1,942

10

5

160

195

Onukurani

922

1,006

652

1,006

Iwi

674

122

174

219

85

252

85

542

468

79

42

53

6,419

5,012

3,735

4,144

Resources & maintenance

346

325

140

135

Communication Unit costs

109

100

92

94

Employee Benefit expense (Management & Direct) Group Project Direct Costs Anamata

Whairawa Other Direct Costs - Cost of sales

Indirect Costs:

Telecommunications

47

45

26

24

Utilities

115

95

64

69

Other Indirect Costs

292

146

106

89

909

712

428

410

Personel Expenses

781

918

682

838

Financial Portfolio Management Fees

741

727

741

727

1,186

845

551

594

223

167

223

167

Administration & Other Costs include:

Depreciation & Amortisation

19

GST Apportionment Insurance Donation

7

190

135

104

90

375

650

4,000

10,000

121

106

58

43 14

Fees paid to Auditors: For Audit services

20

20

11

Professional Fees

For Taxation services

109

53

23

43

Grants Paid

136

405

140

259

77

96

107

40

Other Administration Costs Tribal Capacity (Other Costs)

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

7 Donations Note In March 2019 TĹŤhoe Te Uru Taumatua made donations of $4,000,000 (LY $10,000,000) in income to the TĹŤhoe Charitable Trust.

48

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

-

15

0

0

3,960

4,138

6,639

12,816

111

88

82

69

GROUP 2019 2018 $000's $000's

375

650

PARENT 2019 2018 $000's $000's

4,000

10,000

BDO WELLINGTON

Notes to The Financial Statements |

For the Year Ended 31 March 2019

GROUP

8 Revenue Note

PARENT

2019 $000's

2018 $000's

2019 $000's

2018 $000's

807 3,161 183 308 4,460

721 1,810 395 344 3,269

2,113 4,220 183 35 6,552

1,698 5,068 99 37 6,902

3 156

7 398

1 128

3 391

885 5,842 363 7,250

828 5,661 410 7,304

487 5,842 6,458

255 5,661 6,311

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 $63,606 (LY $71,742) 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

2019 $000's

2018 $000's

2019 $000's

2018 $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 Eighteen - Twenty Nineteen

| He Korona Whakataena

49

Notes to The Financial Statements |

For the Year Ended 31 March 2019

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 2019 2018 $000's $000's 2,416 4,194 2,668 (12) 9,266

1,866 1,764 2,200 0 5,830

PARENT 2019 2018 $000's $000's 2,416 4,194 2,668 (12) 9,266

1,866 1,764 2,200 0 5,830

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 2019 2018 $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

53,425 21,749 75,174 3,482 3,022 -

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

Add: Share of surplus after tax

11,531

6,119

-

-

11,531 80,201

6,119 75,173

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

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 $25.60 per unit (LY:$20.95 per unit).

50

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

BDO WELLINGTON

Notes to The Financial Statements |

For the Year Ended 31 March 2019

GROUP 2019 2018 $000's $000's

PARENT 2019 2018 $000's $000's

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

20,709 20,709

14,881 14,881

15,271 15,271

4,276 4,276

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

3,624 647 (2,748)

2,604 651 (2,887)

2,672 647 (20)

748 769 (66)

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

(1,373) 0 (27) 378 (401) 100 100

(545) 69 138 106 (282) (145) (145)

(2,020) 0 (27) (401) 851 851

(628) 69 138 (282) 749 749

100 136

(517) 372

851 136

377 372

(928) 100 (64) (669) (1,560)

(988) (517) 71 648 (928)

(853) 851 (739) (741) (1,481)

(926) 377 (887) 583 (853)

10 Income Tax Note Tax Expense/(Income)

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 (2019:646,637 and 2018:564,674) are paid to the IRD in April.

Deferred Tax (Parent and Group) Deferred tax liability/(asset) Balance 1 April 2017 Recognised in surplus or deficit - 2018 Balance 31 March 2018 Recognised in surplus or deficit - 2019 Balance 31 March 2019

BDO WELLINGTON

Prepaid expenses

Matahi Forest

Total

4 4 4

1,786 372 2,157 136 2,293

1,790 372 2,161 136 2,297

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

51

Notes to The Financial Statements |

For the Year Ended 31 March 2019

11 Equity Note

Total Retained Equity Earnings

Fixed Revaluation Reserve Capital

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

Group 2019 Balance at 1 April 2018 Total Recognised Revenue Transfer to Revaluation Reserve Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2019

14

359,888 21,343 -

115,027 21,343 (869) -

242,783 -

2,079 869 -

381,231

135,500

242,783

2,948

344,823 15,065 -

100,000 15,065 (39) -

242,783 -

2,041 39 -

359,888

115,027

242,783

2,079

273,267 14,284 287,551

49,240 14,284 63,524

224,026 224,026

-

269,740 3,527 273,267

45,713 3,527

224,026 224,026

-

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

Parent 2019 Balance at 1 April 2018 Total Recognised Revenue Transfer to Fixed Capital Transfers to Tūhoe Charitable Trust Balance at 31 March 2019

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

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

52

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

BDO WELLINGTON

Notes to The Financial Statements | 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 2019

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.

Group 2019 NZ$

13 Te Ohu Kai Moana Trust Settlement

Fishing Quota Shares AFL Income Share (8754 Shares)

2018 NZ$

Parent 2019 2018 NZ$ NZ$

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 TOKM NZ Units Parent Settlement

Fishing Quota Shares

Antons Quota Shares

Group CRA Paua Quota Quota Shares Shares

NZ Units

Total Group

2019 Opening balance Additions during the period Disposal during the period Revaluation Gain/(Loss) Balance at 31 March 2019

268 59 327

9,674 573 10,247

518 243 762

2,821 (167) 2,654

2,319 151 2,470

310 69 379

15,642 869 16,511

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

268 -

9,999 (326)

453 66

2,942 (121)

1,907 412

35 268 8

15,336 268 39

Balance at 31 March 2018

268

9,674

518

2,821

2,319

310

15,642

2018

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 15th July 2019, on the market value of the fishing quota as at 31st March 2019.

BDO WELLINGTON

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

53

Notes to The Financial Statements |

For the Year Ended 31 March 2019

2019 $ 000's

2018 $ 000's

0.50% 1.95% 0.00%

486 1,865 1 2,352

463 1,943 2 2,409

0.40 - 0.50% 1% - 1.95%

2,262 580 2,842 5,194

3,739 374 4,113 6,522

2019 $ 000's

2018 $ 000's

2.15%-3.5%

3,039 3,039

5,038 5,038

3.30%-3.45% 3.25%-3.43%

14,000 5,700 19,700 22,739

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

15 Cash and Cash Equivalents 2019 Interest Rates Parent ASB Current Account - TUT ASB Fast Saver - TUT Cash & Paypal account

Group Members ASB Current Account ASB Fast Saver

Total for Group

16 Term Deposits 2019 Interest Rates Parent ASB Term Deposit - TUT

TĹŤhoe Charitable Trust ASB Term Deposit - TCT ASB Term Deposit - TFQL

Total for Group

PARENT & GROUP 17 Investments (Financial Portfolio)

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

AMP $ 000's

2019 FNZ $ 000's

ANZ $ 000's

NZAM $ 000's

TOTAL $ 000's

2018 TOTAL $ 000's

58,816 (6,000)

57,994 (6,000)

61,722 (6,000)

40 -

178,572 (18,000)

182,303 (13723)

1,780 2,416 (278) (245) 56,489

1,338 4,194 (176) (239) 57,112

2,722 2,668 (288) (259) 60,565

2 (12) 30

5,842 9,266 (741) (743) 174,196

5,661 5,830 (727) (773) 178,572

Note

8.2 8.3b

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 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 based on quoted prices.

54

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

BDO WELLINGTON

Notes to The Financial Statements |

For the Year Ended 31 March 2019

GROUP 2019 2018 NZ$ NZ$

18 Other Current Assets

Tax Account Receivables Pre-Paid expenses Accrued Income

1 458 459

PARENT 2019 2018 NZ$ NZ$

18 1 231 250

1 1

18 2 20

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 2018

3,692 242 3,934

22,950 10,366 33,316

445 22 467

502 95 (25) 571

698 9 706

374 23 397

603 603

29,263 10,756 (25) 39,993

Additions during the period Disposal during the period Impairment Balance at 31 March 2019 Accumulated Depreciation: Opening balance Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2018

3,934

3,033 36,349

153 619

24 595

151 4 853

107.60 505

603

3,468 4 43,457

-

939 506 1,445

189 39 228

221 87 (11) 297

297 86 383

257 46 303

214 49 263

2,116 814 (11) 2,918

Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2019 Net book value 31 March 2019

3,934

873 2,318 34,031

47 275 345

78 375 220

75 4 454 399

46 349 156

42 306 297

1,162 4 4,075 39,381

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 Stage 2 and the Eco Village (2018:Te Tii). The payment made towards the work as of the balance date was $773,704 (2018:11,321,163) 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 2018

3,679 234 3,913

15,127 56 15,183

406 22 427

345 95 (25) 415

631 8 639

328 19 347

603 603

21,118 433 (25) 21,526

Additions during the period Disposal during the period Balance at 31 March 2019 Accumulated Depreciation: Opening balance Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2018

3,913

856 16,038

9 437

415

77 (4) 712

66 413

603

1,008 (4) 22,530

-

916 305 1,221

183 36 219

165 63 (11) 217

262 75 337

233 36 269

214 49 263

1,973 563 11 2,525

3,913

304 1,525 14,513

32 251 186

59 276 138

59 4 391 321

30 299 114

42 306 297

527 (4) 3,047 19,482

Depreciation charge for the period Depreciation recovered on disposal Balance at 31 March 2019 Net book value 31 March 2019

BDO WELLINGTON

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

55

Notes to The Financial Statements | b.i) Intangibles - Computer Software (Group)

For the Year Ended 31 March 2019

$ 000's

At Cost: Opening balance Additions during the period Balance 31 March 2018 Additions during the period Balance at 31 March 2019

249 249 249

Accumulated Amortisation: Opening balance Charge for the period Balance 31 March 2018

183 31 214

Charge for the period Balance 31 March 2019 Net book value 31 March 2019

24 238 11

b.ii) Intangibles - Computer Software (Parent)

$ 000's

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

249 249

Additions during the period Balance at 31 March 2019

249

Accumulated Amortisation: Opening balance Charge for the period Balance 31 March 2018

183 31 214

Charge for the period Balance 31 March 2019 Net book value 31 March 2019

24 238 11

20

Papakura Property $ 000's

PARENT Kaingaroa Property $ 000's

$ 000's

626 (626) -

1,989 1,989

2,615 (626) 1,989

530 96 626

1,989 1,989

2,519 96 2,615

Investment Property

GROUP Total

2019 Opening balance Investment Property Sold Revaluation Gain/(Loss) Balance at 31 March 2019

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

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 during 2018.

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.

56

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

BDO WELLINGTON

Notes to The Financial Statements |

For the Year Ended 31 March 2019

21 Biological Assets Te Manawa Matahi Forest Forestry Rights $000’s $ 000's

PARENT Total

GROUP Total

$ 000's

$ 000's

2019 Opening balance

-

12,862

12,862

12,862

18,114

-

-

18,114

-

-

-

-

Revaluation Gain/(Loss)

(1,285)

775

775

(510)

Balance at 31 March 2019

16,829

13,638

13,638

30,467

Opening balance

-

10,738

10,738

10,738

Additions during the period

-

-

-

-

Increase due to assets acquired through a non-exchange transaction

-

-

-

-

Revaluation Gain/(Loss)

-

2,124

2,124

2,124

Balance at 31 March 2018

-

12,862

12,862

12,862

Additions during the period Increase due to assets acquired through a non-exchange transaction

2018

The Matahi Forest was purchased during 2016. The Forestry rights have been valued by PF Olsen Limited from Rotorua at 31 March 2019.

The Te Manawa Forest was purchased during 2019. The Forestry rights have been valued by Ngahere Resource Limited from Rotorua at 30 September 2019.

As part of the purchase of the Matahi forest land, the Trust became a participant in the ETS in respect of pre-1990 forest land. The Trust expects to keep the area forested, and they do not consider the land fit for any other purpose, but in the event that they are harvested and not replanted to the correct density within four years, a liability would be incurred to return NZ Units to the Crown equivalent to the lost carbon from the deforestation. This potential liability is not recognised in the financial statements.

22 Other Non - Current Assets

Transactions with Related Party Loan To Tuhoe Charitable Trust

Note

GROUP 2019 2018 NZ$ NZ$ -

-

PARENT 2019 2018 NZ$ NZ$ 18,193 18,193

-

The loan is unsecured and repayable within 1 month from the date when demanded. Tuhoe Te Uru Taumatua have confirmed that they will not demand on the loan within the forseeable future therefore has been classified as non-current. Interest is charged at a rate no lower than the 180 day term deposit rate offered by ASB Bank.

BDO WELLINGTON

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

57

Notes to The Financial Statements |

For the Year Ended 31 March 2019

23 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 T큰hoe Income received in advance Accrued Expenses

17

GROUP 2019 2018 NZ$ NZ$

PARENT 2019 2018 NZ$ NZ$

785 78 274 223

1,915 68 (170) 286

261 40 238 207

166 30 127 248

66 14 256 100 248 2,043

250 87 14 414 1 110 2,974

41 788

250 1 29 851

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

24 Related Parties Note

GROUP 2019 2018 NZ$ NZ$

PARENT 2019 2018 NZ$ NZ$

Transactions with related parties:

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

8.1, 9

-

-

7,242 -

5,547 4

-

-

155 4,270 18,193

172 10,630 -

Payments Te Urewera Board - Shared Costs Donation & Grants to T큰hoe Charitable Trust Loans & Advances - T큰hoe Charitable Trust

Note

GROUP 2019 2018 NZ$ NZ$

PARENT 2019 2018 NZ$ NZ$

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

228 26 18 657

351 22 3 657

144 26 465

162 22 3 383

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.

58

Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

BDO WELLINGTON

Notes to The Financial Statements |

For the Year Ended 31 March 2019

25 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

2019 GROUP $ 000's

PARENT $ 000's

2018 GROUP $ 000's

PARENT $ 000's

5,194 2,754 458 -

2,352 2,494 1 18,193

6,522 1,854 231 -

2,409 1,795 2 -

22,739

3,039

23,438

5,038

10,054 30,467

13,638

10,054 12,862

12,862

174,196

174,196

178,572

178,572

1,033

302

2,024

589

Twenty Eighteen - Twenty Nineteen

| He Korona Whakataena

59

Notes to The Financial Statements |

For the Year Ended 31 March 2019

26 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.

27 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

2019 Group Parent $ 000's $ 000's 11 11

2018 Group Parent $ 000's $ 000's 5 5

11 11

5 5

28 Commitments and Contingencies The Board moved a resolution for further investment in Tribal. There was approval of $4.7M (PY 9.8m) 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.

29 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 $150,000. No provision has been made for this in the financial statements.

At balance date there is a $300,000 contingent asset, being an amount receivable from Housing NZ for removal of a septic tank at Te Tii. This is contingent on the approval of resource consent for the work.

30 Events after Balance Sheet Date Tūhoe Charitable Trust has entered into a sale and purchase agreement to purchase Kawerau Medical Centre during April 2019 with settlement date on 28th June 2019. The purchase value of the transaction is 1.6M. Tūhoe Charitable Trust has entered into a sale and purchase agreement to purchase Te Houhi site at Galatea during the month of July 2019.

The purchase value of the forest is 0.97M. Subsequent to reporting date the Minister of Fisheries announced changes to the Annual Catch Entitlement for some quota share species.

The estimated impact on the value of Tūhoe Fish Quota Limited’s quota shares from 1 October 2019 is a $884,000 decrease, as estimated by an independent valuer. This decrease takes into account the reduced kilogrammes allowable per share, but does not take into account any price per kilogramme movement that may subsequently occur as a result of the reduced ACE.”

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Tuhoe Te Uru Taumatua | Twenty Eighteen - Twenty Nineteen

BDO WELLINGTON

07 312 9659 tari@ngaituhoe.iwi.nz 12 Tūhoe Street, Tāneatua PO Box 56, Tāneatua 3163 TELEPHONE:

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www.ngaituhoe.iwi.nz