Annual Report 2010-11

TŪWHARETOA MĀORI TRUST BOARD

Annual Report for the Year ended 30 June 2011

Our Vision

To support the hopes and aspirations of NgÄ ti TĹŤwharetoa Descendants

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Contents

Directory.................................................................................... 4 Trust Board Members............................................................. 6 Chairman’s Report................................................................... 9 Secretary’s Report.................................................................15 Introduction...................................................................15

Strategy 2010 - 2015....................................................16

Ko Tongariro te Maunga..............................................17

Ko Taupō te Moana.......................................................18

Te Awa o Waikato..........................................................22

Ko Tūwharetoa te Iwi...................................................24

Ko te Heuheu te Tangata.............................................28

Conclusion......................................................................28 Financial Statements and Audit Reports.........................31

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Directory

Trust Board Members

Auditor

Tumu te Heuheu – Chairman

Audit New Zealand on behalf

Te Kanawa Pitiroi – Deputy Chairman

of the Office of the Controller

James Heemi Biddle

and Auditor-General.

Heemi James Biddle

45 Pipitea Street

John Martin Whakawhitiao Bishara

Wellington

Timoti Morehu te Heuheu Danny Aperahama Loughlin

Bankers

Paranapa Rewi Otimi

Bank of New Zealand

Tyronne Andrew Smith

61 Tongariro Street Taupō

Staff Te Hokowhitu-a-Rakeipoho Nathanael Taiaroa – Secretary

Solicitors

Topia Rameka – Principal Advisor - Taupō Waters Trust

Tripe Matthews and Feist

Janet Galbraith – Accounts Clerk

38 - 42 Waring Taylor Street

Trish Church – Office Administrator

Wellington

Michelle Taiaroa – Administrative Support Angela Puru – Office Support

Accountants

Patricia Otimi – Iwi Facilitator

Strettons Chartered Accountants

Sean te Heuheu – Resource Coordinator

44 Heuheu St

Miriama Prentice – Curriculum Facilitator

Taupō

Petrina Bramley – Research Analyst Parewairere Lai – Ringawhakapai Registered Office Tūwharetoa Māori Trust Board Town Centre Tūrangi Postal Address PO Box 87 Tūrangi Phone 07 386 8832 Fax

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07 386 8235

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Trust Board Members

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Tumu te Heuheu CHAIRMAN

Te Kanawa Pitiroi DEPUTY CHAIRMAN

Danny Loughlin

Heemi Biddle

James Biddle

John Bishara

Paranapa Otimi

Timoti te Heuheu

Tyronne Smith

Board Responsibility

The Tūwharetoa Māori Trust Board is responsible for the protection and enhancement of Ngāti Tūwharetoa Taonga. Trustees possess a range of skills, knowledge and experience, which contribute to a strong and collective body. The Board employs a philosophy, based on Tūwharetoa Tikanga and Kawa that best utilises its resources.

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Chairman’s Report

Introduction Kei te toro atu ngā mihi ki runga i a Ngāti Tūwharetoa whānui ahakoa kei hea e noho ana, tēna koutou, tēna tātou katoa.

Ngā mihi ki a koutou i runga i o koutou kaha ki te noho tahi ki roto i tēnei huihuinga o tātou, nau mai, haere mai.

Kei runga i te pepehā e kōrerohia nei; “Mahi Rangatira Ki Te Iwi”, he tohu huarahi ēnei kupu mo ngā kanohi kei te noho ki runga i to koutou Poari. Anei ngā kanohi, e tūtuki atu ki ngā mahi kei te whārikihia ki mua i a mātou. Ahakoa te hōhonu o ngā taki, ko te wawata, ka pihi, ka hua mo te tini o Ngāti Tūwharetoa.

No reira koinei te kī, kia kaha tātou katoa, tihei mauri ora!

It is with pleasure I present to you the fifth annual report for the Tūwharetoa Māori Trust Board for the period of 1 July 2010 to the 30 June 2011.

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Strategic Vision This year was the first year of implementation of the 2011

Water is our sacred lifeblood. We have an obligation to act

– 2015 Strategic Plan. These next five years are focussed

and find a pathway that will sustain this precious taonga

on our vision “Mahi Rangatira ki te Iwi - Support the hopes

for future generations. There is no doubt that our search

and aspirations of Ngāti Tūwharetoa”. This vision provides a

for a pathway forward will require continued engagement

platform for successive boards to continue their commitment

with central government, regional authorities, other iwi,

towards the growth and development of the Iwi as we stand

and industries. We will need to be prepared, fully informed

united to move forward as Ngāti Tūwharetoa.

and aware of the current state of our freshwater and any proposed freshwater management framework of the future.

I take time to remind us all that the Board has taken the words of our tūpuna and our tribal pepehā to guide the

We have a legacy of taking action on matters of great

Boards activities...

importance to the tribe. The current government programme on water is such that I am of the view that this is one of the

Ko Tongariro te Maunga

most important matters we have faced as a tribe for quite

Ko Taupō te Moana

some time.

Ko Tūwharetoa te Iwi Ko te Heuheu te Tangata

To this end, the Board is committed to continuing this engagement in a positive and robust way to ensure a

Within these words is a realisation of what is special and

satisfactory outcome to Ngāti Tūwharetoa.

available to Ngāti Tūwharetoa. It embodies all of our whakapapa, taonga and our place in te ao hurihuri.

Freshwater

Ngāti Tūwharetoa Comprehensive Claims As we begin to enter negotiations to settle the comprehensive claims, the Board has continued its support

I do not need to emphasise the important part that water

of the Tūwharetoa Hapu Forum as the mandated body to

plays in our lives.

negotiate and settle the claims with the Crown.

Ngāti Tūwharetoa has a strong record of protecting our water

This work is significant and is one of highest priority for Ngāti

resources. Our pakeke, when negotiating forestry proposals

Tūwharetoa at this present time.

for our lands, ensured that substantial riparian protection areas were established to prevent damage to our streams, lakes and fisheries. This effort demonstrates a leading system of protection in rural land based enterprises in New Zealand, and perhaps in the world.

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Kāhui Maunga

Te Awa o Waikato

We have continued our engagement with Ngāti Rangi,

Our cultural responsibility and obligations to the Waikato

Whanganui Iwi, Ngāti Maniapoto and Taranaki Iwi regarding

River remain steadfast; we continue our support to Waikato

the ‘Kāhui Maunga’ collective, whose purpose remains to find

Tainui and the other Waikato River Iwi in this kaupapa.

a way forward to resolve issues of mana and management of the Taonga within the Tongariro-Taupō Conservancy.

I have been pleased with the progress that the Board in conjunction with Te Awa o Waikato Advisory Group has made

Ngāti Tūwharetoa and other Iwi continue to propose that

in respect to the vision of restoring the mauri, health and

an agreement is reached on significant ownership and

wellbeing of the Waikato River.

management roles in respect of the conservation estate.

Whilst Ngāti Tūwharetoa and other Iwi, continue to look at

Further Acknowledgements

ways to positively engage, we must always ensure that our focus remains consistent with our collective obligation to our

On behalf of the Members, I wish to thank the many people

Taonga. I am pleased with the progress that has been and

and organisations that have contributed to the Board’s

continues to be made on this important kaupapa.

progress this year. I acknowledge Kaumātua whose wisdom and knowledge is a crucial part of the Board’s success.

I wish to thank the staff, management and advisors who have

Taupō Waters

worked diligently and, finally, the people of Ngāti Tūwharetoa for your continued support.

It was always intended by our Tūpuna that Taupō Moana would provide both tangible and intangible sustenance for

Tēnā koutou, tēnā tātou katoa,

Ngāti Tūwharetoa. Last year we saw the establishment of the Taupō Waters Trust whose responsibility it is to protect, enhance and advance Taupō Waters for and on behalf Ngāti Tūwharetoa.

With increased demands and pressure on Lake use both recreationally and commercially, the Taupō Waters Trust is a vehicle to assist Ngāti Tūwharetoa in achieving its aspirations.

The Taupō Waters Trust is an exciting development for the Tūwharetoa Māori Trust Board and we all look forward to its continued development over the coming year.

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Te Ariki te Heuheu Tukino VIII Tumu

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Secretary’s Report

Introduction Tena Koutou Ngāti Tūwharetoa, I am pleased to present this report for the annual general meeting of the Tūwharetoa Māori Trust Board.

This report highlights the activities and performance of the Board over the 1 July 2010 to 30 June 2011 financial year.

After successfully completing the 2006-2010 Strategic Plan which was focussed on the reassessment of its values, performance and systems, the Board has progressed to concentration toward its engagement with the most important stakeholder; the people.

The year was highlighted by the production and adoption of the Board’s Strategic Vision for 2010-2015 Strategic Plan. The utilisation of the Tribal pepeha as the basis of the Boards Strategy was a very important step.

The Board’s five year strategic plan to 2015 is one that is guided by the kōrero of our Tūpuna. The Tribal Pepehā identifies who we are, where we are and what is important to us.

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Strategy 2010 - 2015

KO TONGARIRO TE MAUNGA

Both positions have hit the ground running with significant project achievements throughout the reporting period.

Protection and enhancement of Ancestral Taonga

Projects such as the “Board info days” held within the rohe

(Whenua, Ngahere, Maunga,)

were very well received by our people.

KO TAUPŌ TE MOANA Protection, enhancement and advancement of Taupō Waters

The impact of both tranches of mahi will be reported further

(Taupo Moana, Waikato River, Wai)

in this report.

KO TŪWHARETOA TE IWI Support of Ngāti Tūwharetoa Descendants (Whanau, Hapū)

KO TE HEUHEU TE TANGATA Support of the Traditional Leadership of Ngāti Tūwharetoa (Arikitanga, Tribal Advocacy)

Under the ‘Ko te Heuheu te Tangata’ tranch the Board focuses on its continued support to the Arikitanga and it’s role as Tribal Advocate. Throughout the reporting period, the Board and the Ariki have represented the Ngāti Tūwharetoa position on issues of national significance and more importantly issues of significance to Ngāti Tūwharetoa.

Under the ‘Ko Taupo Te Moana’ tranch the Board through the

To achieve the objectives of the Strategic vision, on a consistent basis, there was a need to increase the capability of the Secretariat. As a consequence two new positions were created which were aligned to the pepeha.

Aligned to ‘Ko Tongariro te Maunga’ which deals with the Whenua, Ngahere and Maunga the Resource Facilitator position was established. Aligned to ‘Ko Tuwharetoa te Iwi’, which advocates for Whanau and Hapū issues, the position of the Iwi Facilitator was established.

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Taupō Waters Trust (TWT) and the Principal Advisor focuses on Lake Taupō, Water Allocation, Waikato River and Best Practice Asset Management and Development.

The year can be summarised as one of getting closer to the people through new capability.

Ko Tongariro te Maunga In August 2010 the Board established the Resource

• Assisting staff with the redevelopment of the Tūwharetoa

Coordinator position. The primary responsibility of this

Māori Trust Board website.

position was to assist in the ‘Protection and enhancement of our ancestral tāonga’ by progressing the following key

In year 2, 2011/12, we are aiming to build on our mahi from

objectives, as set out in the Board’s 2010-15 Strategic Plan -

the last year by –

We provide effective advocacy and research services

for land currently under Tūwharetoa ownership,

environmental advocacy is required and addressing

•

•

Identifying the areas where more effective

We provide effective advocacy with central, regional

these needs.

and district environmental policies and regulation and

Increasing the Boards capacity to deal with

We repatriate Tūwharetoa land.

• •

•

environmental issues that affect our tāonga.

Developing internal and external policies that give

•

Tūwharetoa more influence with regard to the

Rebuilding systems and processes to help us to

governance/management of our tāonga.

manage our Environmental planning role.

Actively monitoring legislation to ensure that we are

Developing internal processes to advocate the Boards

aware of the impact that it could have on our

position on environmental matters with district

tāonga and to ensure that we are engaged throughout

councils, regional councils, central government

its development.

organisations and other applicants under the Resource

Improving our communication with our Tūwharetoa

Management Act 1991 (RMA).

Identifying and addressing issues relating to central

In year 1, 2010/11, we concentrated on the following mahi –

• •

•

•

•

whānau in relation to environmental issues.

government’s involvement in the administration of

In summary we have been in a rebuilding phase, following

Tongariro National Park.

the disestablishment of the Environmental Unit in 2008, and

Preparing submissions in relation to district council,

this is reflected in the achievements to date. Moving forward

regional council, central government organisations

we aim to have a more active role in whānau achieving their

and other applicants under the RMA.

aspirations in regard to the environment and creating a

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Improving the administration of the Tūwharetoa

stronger position for Tūwharetoa in the decision making over

Māori Trust Board/Department of Conservation (DOC)

their tāonga.

Liaison Committee monthly hui.

Rebuilding the Boards Geographic Information System

•

•

(GIS) and engaging with entities who could provide

data to support our system.

Identifying Māori owned land parcels that are eligible

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for Rates Remissions with district and regional

councils.

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Ko Taupō te Moana Taupō Waters Trust

This strategy focuses the Trust on some key objectives, those

The Tūwharetoa Māori Trust Board is the Trustee of the Taupō

being:

Waters Trust. The primary responsibility of the Taupō Waters

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Best practice asset management of Taupō Waters;

Trust is to administer these assets with specific regard to best

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Commercial return on assets;

practice asset management and the licensing of commercial

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Financial prudence in decision-making; and

activities, commercial events, new structures and extension

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Positive relationships developed with users of Taupō

of old structures.

waters.

The Assets

Commercial Policies for Taupō Waters

The Taupō Waters Trust holds title to the:

The Taupō Waters Trust has the ability to charge and licence

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Taupō-Nui-a-Tia Block

the following activities:

•

Te Awa o Waikato ki te Toka o Tia Block

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Commercial events

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Te Hokinga mai o te papa o nga awa ki te Poari hei

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Commercial activities

Kaitiaki o nga Hapū o Ngāti Tūwharetoa Block

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New structures

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Changes to existing structures

These titles are collectively known as the Taupō Waters and have been vested in the Taupō Waters Trust by the Māori

The Taupō Waters Trust has developed commercial policies

Land Court as Māori Freehold Land.

with respect to these functions and is currently engaging with commercial operators regarding roll-out

All the Boards beneficiaries are beneficiaries of the Taupō

and implementation.

Waters Trust in this respect. Adjoining Hapū are the beneficiaries in respect of the rivers.

The policies that have been developed provide for:

•

proper recognition of Ngāti Tūwharetoa in these

Strategy

various activities,

The Strategy for the Taupō Waters Trust is guided by the

certainty to the various businesses already operating

•

2010-2015 strategic plan of the Tūwharetoa Māori Trust

and

Board, being:

•

a commercial return from the asset to Ngāti

Tūwharetoa.

Ko Tongariro te Maunga Ko Taupō te Moana - “the protection, enhancement and

So far, feedback from the operators has been positive and it

advancement of Taupō Waters”

is envisaged that a staged rollout will begin in mid-2012 and

Ko Tūwharetoa te iwi

will be phased in over 3-5 years.

Ko te Heuheu te Tangata As far as commercial events and licences for new structures are concerned, these are now in place.

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Lake Taupō Protection Strategy

target reduction figure of 20% reduction in Nitrogen

Since 2004, the Board has worked in conjunction with

is now 183,000kgs/N rather than present target

Waikato Regional Council; Taupō District Council and the

of 153,000 kgs/N. In light of this the Trust has applied

Crown to develop an enduring solution to the water quality

for additional funds from Government and the two

of Taupō Moana which was otherwise at risk of serious

local authorities to complete the project.

decline.

The Trust has contracts for removal of approximately

•

115,000 kgs of Nitrogen and is ahead of target

As a result, the Lake Taupō Protection Strategy has been

completion in 2018

developed. It is a forward-looking plan that encompasses

Agreements with Tūwharetoa entities make up

all sectors of land owners and the community who have an

approximately 60% of the Nitrogen reduction and

impact on Taupō Moana. The Lake Taupō Protection Trust is

have allowed a capital injection for these groups while

still retaining their ability to farm the land profitably

At present the Trust is involved in an engagement

charged with implementing this Strategy.

•

•

The Lake Taupō Protection Trust was set up in February 2007

exercise with a range of stakeholders with the intent

to administer the $81.5 million fund to protect Lake Taupō

of seeking their opinion of how to progress from here

water quality, which is under threat from the effects of past

and explaining the opportunities from carbon trading

and current land use activities.

Freshwater The Trust is charged with developing a programme of work

The Board under the leadership of the Chairperson has

that will reduce the amount of manageable nitrogen leaching

continued the iwi leadership engagement with Crown

into the lake by 20 per cent, purchasing nitrogen, benchmark

alongside Ngai Tahu, Te Arawa, Tainui and Whanganui leaders

nitrogen discharge allowances and monitor and report on the

in respect to the proposed reforms that the Government is

Trust’s performance.

considering in respect to the future management of fresh water in New Zealand.

It uses the funds to encourage and assist land use change, to purchase land/nitrogen in the Lake Taupō catchment and to

This work has also included participation in the Land and

fund any other initiatives that assist land owner to reduce the

Water Forum which has employed a collaborative governance

nitrogen impact of their activities on Lake Taupō.

approach to addressing the complex issues associated with Fresh Water Management, the Forum had representation

The highlights for the Trust for 2009-10 are:

from over sixty stakeholder organisations involved in Fresh

Water Management.

•

Continued good working relationship with Joint

Committee

•

Agreement on farm monitoring requirements with

The Land and Water Forum has now evolved into stage two

Environment Waikato

of the reforms and Ngāti Tūwharetoa will look to continue the

The review of the project has indicated that the

engagement alongside other iwi in this process.

•

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Whilst there is momentum on a national scale, Tūwharetoa

are looking to develop and re-confirm a wider Tūwharetoa

•

Provide services or facilities for public use of the beds where necessary.

position on water so to ensure a satisfactory and enduring outcome for Tūwharetoa based on our exampled principles

The Taupō-Nui-a-Tia Management Board is required to

of kaitiakitanga.

manage Taupō Waters as if it were a reserve under the Reserves Act 1977. To that end, a recreational and reserve

Taupō-Nui-a-Tia Management Board

management plan for Taupō Waters is to be developed to

The Taupō-Nui-a-Tia Management Board was established in

manage non-commercial recreational and reserve activities

1996 to manage and administer the beds of Taupō waters, in

on Taupō Waters.

a partnership between Ngāti Tūwharetoa and the Crown.

The Board has eight members, four of whom are appointed

The Board promoted a collaborative approach toward the

by the Tūwharetoa Māori Trust Board to represent the

development of this plan alongside other partner agencies:

interests of Ngāti Tūwharetoa. The other four are appointed

Department of Conservation; Taupō District Council;

by the Minister of Conservation to represent the public

Environment Waikato; and the Department of Internal Affairs.

interest on behalf of the Crown.

This plan was agreed to by the Board in December 2011 and The Board is required by the 2007 Deed to:

•

is now active.

Manage the beds of Taupō waters, as if they were

a reserve for recreation purposes under section 17 of

Waikato Regional Plan:

the Reserves Act 1977;

Proposed Variation 6 – Water Allocation

Act in accordance with an administering body under

In 2006, Environment Waikato notified a variation to the

the Reserves Act 1977; and

Waikato Regional Plan. The Board engaged with Environment

•

Determine such conditions and restrictions as the

Waikato in discussions over development of the policy

Board considers necessary for the protection and

framework. The variation hearings were held in 2007/08 and,

wellbeing of the beds of Taupō waters and for the

subsequently, there has been a series of Environment Court

protection and control of the public using them.

appeals of which the Tūwharetoa Māori Trust Board is

•

party to.

The core functions of the Board are to: Consider applications to use the beds of Taupō waters

During negotiations with Environment Waikato, the Board

for any purpose or development allowed under law;

was successful in extending the allocation catchment line of

•

Consider and advise on the merits of any proposal

Taupō Waters from the Waikato Control Gates to the Huka

referred by the Minister of Conservation to release any

Falls. This is a very significant outcome and provides for

area of the beds of Taupō waters from the Deed;

further and significant opportunities for Ngāti Tūwharetoa

Make submissions to the Tūwharetoa Māori Trust

and for Tūwharetoa Economic authorities both current and future needs into the future.

•

•

Board, Environment Waikato, Taupō District Council,

or any other agency as appropriate, regarding

conditions or restrictions that the Board considers

necessary; and

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The date for hearings is set down for March 2012.

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Taupō-Nui-a-Tia 2020 Action Plan

Tributaries – Unreturned River Beds

The 2020 Taupō-Nui-a-Tia Action Plan is a non-statutory, long

In 1992, the Board received fee simple title of Taupō Moana

term action plan for Taupō Moana. The plan is supported by

and its tributaries, however the Crown was unable to return

central and local government (Ministry for the Environment,

all that it had taken in 1926 as in some cases, title ownership

Department of Conservation, Department of Internal Affairs,

had changed. The shortfall amounts to approximately nine

Environment Waikato, Taupō District Council) and the

kilometres of riverbed. An example of this includes the

Tūwharetoa Māori Trust Board.

section of the Kuratau River where the Kuratau Hydro Station owned and operated by King Country Energy is located.

The 2020 Taupō-Nui-a-Tia Action Plan focuses on social, cultural, environmental and economic values as identified by the community and Ngāti Tūwharetoa, and sets out new

Te Awa o Waikato

actions to be undertaken by the different agencies to help protect or enhance those values.

Ngāti Tūwharetoa, Raukawa and Te Arawa River Iwi Waikato River Act

The Statutory Right-Of-Way

In 2010, the Ngāti Tūwharetoa, Raukawa and Te Arawa River

In 1926, the Māori Land Amendment and Māori Land Claims

Iwi Waikato River Iwi Bill was passed into legislation and gives

Adjustment Act saw the creation of a legal right-of-way

effect to the Waikato River Deed between the Crown and

through every piece of Māori Title Land which abutted Taupō

Ngāti Tūwharetoa. This Act primarily:

Moana.

•

Provides Ngāti Tūwharetoa a co-governance

The right-of-way is still a matter of ongoing discussion

between the Board and the Crown in respect to what rights

and

in these areas are. The determination of the right-of-way

boundaries are set by Chart Datum. The right-of-way does

•

framework for the Waikato River and its catchment; Establishes co-management and related arrangements with each iwi

not apply to tributaries.

The overarching purpose being to restore and protect the The Board has been working closely with the Crown to

health and wellbeing of the Waikato River for present and

answer the following questions:

future generations. The Tūwharetoa Māori Trust Board signed

•

Where is the Right of Way?

and ratified the Deed in relation to Co-Governance and Co-

•

What rights exist for Tūwharetoa, abutting landowners

Management Arrangements for the Waikato River on 31 May

and the public?

2010.

What can occur on the right of way?

•

A report will soon be prepared and engagement had with our

To assist and allow the Board to properly engage in the co-

Tūwharetoa landowners that abut Lake Taupō.

management framework provided for in the Deed, the Board reached agreement with the Crown, whereby the Crown makes a contribution to the costs incurred by the Board.

This equates to a total sum of $30 million – comprised of $9.5 million on signing of the deed and $1 million per annum thereafter for twenty years.

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Over the next few months, the Board will be engaging with

This Advisory Board has a term of three years and holds only

Ngāti Tūwharetoa Hapū that affiliate with the Waikato River

recommendation powers in the following areas:

to discuss next steps in terms of this important kaupapa.

•

providing guidance and making recommendations

Waikato River Authority

to the Board regarding any projects or programmes for

The Waikato River Authority is borne out of the Waikato River

the wellbeing of the Waikato River;

Settlement Act.

overseeing any projects and programmes pertaining to

•

the Board’s rights and obligations under the River Acts;

The Waikato River Authority once established is a single co-

assisting the Board to develop Ngāti Tuwharetoa

governance entity made up of equal numbers of Crown and

objectives for the Waikato River;

Iwi appointed members who are responsible for monitoring

providing advice to the Board on any resource consent

and guiding the implementation of the Vision and Strategy of

applications that are provided to the Board by the

Waikato Regional Council;

assisting the Board in preparing and approving the

the Waikato River.

• •

•

The vision and strategy will form part of the Waikato Regional

Upper Waikato River integrated management plan;

Policy Statement and be given effect through the regional

assisting the Board in preparing an environmental

•

and district plans administered by the regional and territorial

plan;

authorities.

will enter into joint management agreements with

It also sets out a framework for co-governance of the river,

local authorities (and, if the Board decides to enter into

JMAs, to assist the Board in developing any JMAs);

assisting the Board in developing:

the longest in New Zealand.

•

•

assisting the Board in deciding whether or not it

Te Awa o Waikato Advisory Group

In support of the Board’s responsibilities arising from the

Waikato River legislation, the Board has appointed an

conservation legislation;

advisory group whose purpose is to:

• customary fishing regulations; and/or

• bylaws restricting or prohibiting fishing on Waikato

•

• regulations for the management of aquatic life, habitats and natural resources managed under

provide advice to the Board in relation to its rights and

River,

obligations under the Tūwharetoa Deed and the River

Acts;

•

assisting the Board with any accords it may wish to enter into with the Crown in relation to the Waikato

assist the Board in fulfilling its obligations under the

River;

Tūwharetoa Deed and the River Acts; and

•

•

assisting the Board with the appointment of (and

assist the Board in recognising and utilising the rights

removal if necessary) a Board member to the Waikato

afforded to the Board under the Tūwharetoa Deed and

River Authority.

the River Acts.

•

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Ko Tūwharetoa te Iwi ‘Supporting the aspirations of our People’ continues to be

• That our People achieve their Educational Goals

a key focus of the Board. Revenue generated from Taupō

Moana has enabled the Board to carry out a range of

programmes to support this work, as well as collaborations

with other iwi organisations and partnerships with crown

agencies.

o Discussions around targeted scholarships

o Discussions with Industry Training Organisations with

o Online and email invitation to beneficiaries to participate in educational surveys

o Discussions with beneficiaries regarding grants/ scholarships on offer

Since the formation of the Tūwharetoa Māori Trust Board

a view to provide training opportunities and work

in 1926, the Board has sought to uplift the health and

placements for our rangatahi

educational outcomes of our People. Almost 85 years later,

these efforts remain important. With the adoption of a new

Marae

strategic plan in 2010, key result areas were identified to

enhance this work:

o Staff support of Wānanga at Korohe and Waitahanui o Continued support and delivery of the Tūwharetoa Cultural Knowledge Project

o Continued support and delivery of the He Ara Tika

That our People are healthy and well and that

Project

succession planning is supported

•

That our People achieve their educational goals

•

That our People achieve their cultural aspirations and

•

are proud of their Tūwharetoa heritage

That we communicate effectively with our People

•

o Distributing $220,830 in education grants in collaboration with Tūwharetoa Settlement Trust

• That our People achieve their Cultural aspirations and

are proud of their Tūwharetoa Heritage

o Engaging hapū to deliver authentic cultural knowledge

In the 2010-2011 year, we undertook a number of activities to

achieve these goals. They were as follows:

o Supporting Taiopenga o Tūwharetoa 2010

• That our People are healthy and well and that

o Planning toward the Pou Tikanga programme

succession planning is supported

o Online and email invitation to beneficiaries to

participate in a health survey

o Investment in Whānau Ora

o Continued support of Ngā Rēhia o Tūwharetoa

o Strengthening relationships with Whānau Ora

o Work toward an intergenerational plan for Ngāti

providers within the Tūwharetoa rohe Tūwharetoa to 2050

o Awarding $23,234 in Kaumātua Medical grants

24

scheduled to begin February 2012

o Work toward receiving the ‘Te Ara Wairua o Ngāti

to schools within the rohe,

Tūwharetoa’ collection

o Planning toward establishing a Puna Mahara to provide a repository of information available to Ngāti

Tūwharetoa

o Distributing Marae Grants – Ōtūkou received $50,000

for renovation works

25

• That we communicate effectively with our People

The main goals of the programme are to encourage students

to stay in school, to achieve their potential and to help them

o Improving the website and utilising texting and

emailing to update beneficiaries

into further education.

o Holding information days in Taupō and Taumarunui to

engage beneficiaries living within the rohe

Essentially students, who had been identified as leaders or

o Update of print publications and forms

role models, are approached to become He Ara Tika Tuakana

o Sponsoring a community group pānui on Tūwharetoa

or Mentors - for their Junior Peers. Volunteer adults also

FM and featuring on the ‘Localise It’ show to talk about

guide and support students. This programme has been

Board activities

designed specifically for rangatahi Māori and has proved

o Attending a number of events to engage with our

People

highly successful last year, with 17 students becoming He Ara Tika Tuakana, mentoring 89 students across two high schools in Taupō.

Highlights Information Days Engaging with whānau and hapū from around the rohe was a key focus of the information day’s activities this year.

In the past the Board have held a number of hui with taurahere groups living in main centres and we wanted to talk with whānau living in the main towns throughout our rohe. Four information days were held in Taupō and Taumarunui, attracting between 50-75 people per day.

This activity gave us an opportunity to talk about the services on offer at the Board, as well as update contact details and seek feedback regarding services. We received a number of suggestions, some of which have helped inform our He Ara Tika

processes and improve our services. We hope to continue

Since 2008 the He Ara Tika programme has been running in

with information days, or full service days in Taupō and

Tūwharetoa. The programme currently operates in Taupō

Taumarunui in 2012 and beyond.

co-ordinated by TeWhetu Dewes. From September 2010 the programme has been particularly successful for the engagement and achievement of rangatahi and mentors.

26

Tūwharetoa Cultural Knowledge (TCK) Project

This Project enables teachers to do what they do better.

Māori values and principles permeate the stories hapū tell

It is changing the way they teach, the way they see the world,

and the Project provides the opportunity to revisit real

the way they perceive their local and tribal landscapes.

examples of these in the hope that they can be adopted

Ultimately it is changing the way they perceive Māori

or rekindled in individual’s lives. This is the cultural lens so

learners, where once the question may have been asked, ‘why

often absent in classrooms today.

do we need to alter our practice for Māori?’ to most recently, ‘how can we be better culturally responsive teachers?’

A Resource Development Plan was created from hui in March and April with selected schools/centres including an

Essentially the content of this Project is sustained by the

Immersion Te Reo Māori Resource Reference Group (Te Kura

generosity of Ngāti Tūwharetoa hapū. Six hapū have made

o Hīrangi). From the plan three aspects of a TCK Resource

full contributions by way of wānanga to collect kōrero,

were created; a website facility, the kete rauemi (resource kit)

editing and releasing agreed kōrero to the kete rauemi

and a catalogue of Tūwharetoa resources. We look forward

(resource kit) and hosting teachers on their home marae

to presenting these resources to our hapū and to learning

where the kōrero is delivered in its authentic context.

institutions within the rohe. This launch will take place in

A system for approval and affirmation for release to resources

March 2012.

has been developed which takes the forms of written agreement and regular consultation with kuia and kaumātua

alongside advice from our cultural advisor.

27

Ko te Heuheu te Tangata Ārikitanga

Conclusion

The traditional leadership of Ngāti Tūwharetoa is well

In closing I wish to thank the Board for their direction and

known and well regarded. In recognition of this, the Board

support throughout the year and a special thank you to my

continues its historic support of the Arikitanga by making an

staff who have performed admirably to complete the tasks

annual contribution by way of a grant directly to the Ngāti

placed in front of them for the benefit of the Board and

Tūwharetoa Paramountcy Charitable Trust. The purpose of

ultimately the beneficiaries.

the Trust is to support the work that the Āriki does for and on behalf of Ngāti Tūwharetoa and the Motu.

Nō reira mā te atua koutou hei manaaki hei tiaki.

Kāhui Maunga The Board has supported the Ariki in his work with the Kāhui Maunga kaupapa. Participants of this kaupapa are Iwi with interests in the central North Island Maunga.

The kaupapa is based on principles of kōtahitanga and collectiveness in anticipation of an engagement with the

Rakeipoho Taiaroa

Crown on the future management of these Maunga.

SECRETARY

Tūwharetoa Claim Support The Ngāti Tūwharetoa comprehensive claim approach, through the Waitangi Tribunal Claim (WAI 575), lodged by the late Tā Hepi Te Heuheu, received ongoing financial support from the Board. This claim is now led by the Tūwharetoa Hapū Forum which is a collective of Tūwharetoa Hapū.

Lake Taupo and the Crown The Board has continues to engage with the Crown through a Memorandum of Understanding with the Department of Conservation as the lead government department representing the Crown on matters relating to the 2007 Lake Taupō Deed.

As there are over a dozen government departments which each have a role or statutory responsibility in the management of Taupō Moana, the memorandum has simplified and improved communication with the Crown.

28

29

Tūwharetoa Māori Trust Board

Financial Report FOR THE YEAR ENDED 30 JUNE 2011

Tūwharetoa Māori Trust Board

Contents

Audit Report 32 Directory 34 Trustees’ Report 35 Statement of Responsibility 38 Statement of Financial Performance 39 Statement of Movements In Equity 40 Statement of Financial Position 41 Statement of Cash Flows 42 Statement of Accounting Policies 44 Notes to and Forming Part of the Financial Statements 50

31

Independent Auditor’s Report

To the readers of the Tūwharetoa Māori Trust Board and group’s financial statements for the year ended 30 June 2011.

The Auditor-General is the auditor of the Tūwharetoa Māori Trust Board (the Trust Board) and group. The Auditor-General has appointed me, Stephen Lucy, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements of the Trust Board and group on her behalf.

We have audited the financial statements of the Trust Board and group on pages 35 to 62, that comprise the statement of financial position as at 30 June 2011, the statement of financial performance, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information.

Opinion In our opinion the financial statements of the Trust Board and group on pages 35 to 62: • comply with generally accepted accounting practice in New Zealand; and • fairly reflect the Trust Board and group’s:

o financial position as at 30 June 2011; and

o financial performance and cash flows for the year ended on that date.

Our audit was completed on 9 February 2012. This is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Members of the Board and our responsibilities, and we explain our independence.

Basis of opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, and the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the preparation of the Trust Board and group’s financial statements that fairly reflect the matters to which they relate. We consider internal control 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 Trust Board and group’s internal control.

32

An audit also involves evaluating: • the appropriateness of accounting policies used and whether they have been

consistently applied;

• the reasonableness of the significant accounting estimates and judgements made by

the Members of the Board;

• the adequacy of all disclosures in the financial statements; and • the overall presentation of the financial statements.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Responsibilities of the Members of the Board; The Members of the Board are responsible for preparing financial statements that: • comply with in accordance with generally accepted accounting practice in

New Zealand; and

• fairly reflect the Trust Board and group’s financial position, financial performance

and cash flows.

The Members of the Board are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

The Members of the Board’s responsibilities arise from the Maori Trust Boards Act 1955.

Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements and reporting that opinion to you based on our audit.

Our responsibility arises from section 15 of the Public Audit Act 2001 and section 31 (2) of the Maori Trust Boards Act 1955.

Independence When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants.

Other than the audit, we have no relationship with or interests in the Trust Board or its subsidiary.

S B Lucy, Audit New Zealand On behalf of the Auditor-General, Wellington, New Zealand 33

Tūwharetoa Māori Trust Board

Directory

TRUST BOARD MEMBERS

AUDITOR

Dr Tumu te Heuheu D.C.N.Z.M. - Chairman

Audit New Zealand on behalf of the Office of the

Te Kanawa Pitiroi – Deputy Chairman

Controller and Auditor-General.

Paranapa Rewi Otimi James Heemi Biddle

45 Pipitea Street

Heemi James Biddle

Wellington

John Martin Whakawhitiao Bishara Timoti Morehu te Heuheu Danny Aperahama Loughlin

BANKERS

Tyronne Andrew Smith Bank of New Zealand 61 Tongariro Street SECRETARY

Taupō

Te Hokowhitu–a-Rakeipoho Nathanael Taiaroa SOLICITORS REGISTERED OFFICE

Tripe Matthews and Feist 38 - 42 Waring Taylor Street

Tūwharetoa Māori Trust Board Town Centre Tūrangi

POSTAL ADDRESS PO Box 87 Tūrangi Phone 07 386 8832 Fax

34

07 386 8235

Wellington

Tūwharetoa Māori Trust Board

Trustees’ Report

Your Trustees have pleasure in submitting their Annual Report and Financial Statements for the year ended 30 June 2011.

PRINCIPAL ACTIVITIES The Trust Board’s principal activities during the year were: To be accountable to the beneficiaries of the Board for the receipt of a share of fishing licence and other fees, the administration of these funds and their distribution to Trust beneficiaries.

The Trust operates a health services company, Tūwharetoa Health Services Ltd. RESULTS

Trust Group surplus net of tax

2011

2010

$000

$000

1,503

22,710

35

Tūwharetoa Māori Trust Board

Trustees’ Report

FINANCIAL POSITION The group equity of the Trust Board was represented by: 2011

2010

$000

$000

Current Assets

5,465

15,489

Less Current Liabilities

(430)

(572)

5,035

14,917

9,872

9,872

Plus Lake Bed Other Property, plant and equipment

249

234

Non-current Investments

21,972

10,259

Non-Current Receivables

10,685

11,028

$47,813

$46,310

2011

2010

$000

$000

REVIEW OF OPERATIONS

Board Distributions Paid Annual Surplus Equity

615

831

1,503

22,710

47,813

46,310

DIRECTOR’S INTEREST/REMUNERATION Director’s remuneration paid to the present director of Tūwharetoa Health Services Limited during the year, or due and payable is as follows:

K Gosman

36

2011

2010

$0

$0

Tūwharetoa Māori Trust Board

Trustees’ Report

AUDITOR An annual audit is required under section 31(2) of the Māori Trust Boards Act 1955. Audit New Zealand has been appointed to provide these services, by the Officer of the Auditor General.

For and on behalf of the Board

Chairman Date 08.02.2012

37

Tūwharetoa Māori Trust Board

Statement of Responsibility FOR THE YEAR ENDED 30 JUNE 2011

1 The Trustees of the Tūwharetoa Māori Trust Board accept responsibility for the preparation of the annual Financial Statements and the judgements used in them;

2 The Trustees of the Tūwharetoa Māori Trust Board accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and

3 In the opinion of the Trustees of the Tūwharetoa Māori Trust Board, the Financial Statements for the year ended 30 June 2011 fairly reflect the financial position and operations of the Tūwharetoa Māori Trust Board.

Chairman

Trustee

Date 08.02.2012

38

Date 08.02.2012

Tūwharetoa Māori Trust Board

Statement of Financial Performance FOR THE YEAR ENDED 30 JUNE 2011

Revenue Expenses

Note 1

Net Surplus before Taxation

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

4,603

27,321

4,302

25,134

3,100

4,611

2,900

2,716

1,503

22,710

1,402

22,418

Less Taxation

Note 3

-

-

-

-

NET SURPLUS AFTER TAXATION

Note 1

1,503

22,710

1,402

22,418

The accompanying accounting policies and notes form part of these financial statements

39

Tūwharetoa Māori Trust Board

Statement of Movements in Equity FOR THE YEAR ENDED 30 JUNE 2011

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

46,310

23,600

45,972

23,554

Net Surplus after Taxation

1,503

22,710

1,402

22,418

Total recognised revenues and expenses for the period

1,503

22,710

1,402

22,418

47,813

46,310

47,374

45,972

TOTAL EQUITY AT BEGINNING OF THE YEAR

TOTAL EQUITY AT THE END OF THE YEAR

40

The accompanying accounting policies and notes form part of these financial statements

T큰wharetoa M훮ori Trust Board

Statement of Financial Position AS AT 30 JUNE 2011

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

EQUITY Retained Earnings

Note 2

TOTAL EQUITY

47,813

46,310

47,374

45,972

47,813

46,310

47,374

45,972

REPRESENTED BY: CURRENT ASSETS Cash Receivables and Prepayments

Note 4

Short Term Loan to Subsidiary Short Term Loan Investments

Note 11

TOTAL CURRENT ASSETS

180

378

179

376

1,916

1,287

1,143

1,127

-

-

250

250

120

120

120

120

3,249

13,704

3,249

13,157

5,465

15,489

4,941

15,030

CURRENT LIABILITIES Bank Overdraft

Note 5

-

45

-

-

Payables and Accruals

Note 6

430

527

345

451

Taxation Payable

Note 3

TOTAL CURRENT LIABILITIES

NET WORKING CAPITAL

-

-

-

-

430

572

345

451

5,035

14,917

4,596

14,579

9,872

NON-CURRENT ASSETS Lake Bed

Note 7

9,872

9,872

9,872

Other Property, Plant & Equipment

Note 8

249

234

249

234

Accounts Receivable

Note 4

10,685

11,028

10,685

11,028

Notes 9-11

21,972

10,259

21,972

10,259

42,778

31,393

42,778

31,393

Term Loans (Secured)

-

-

-

-

TOTAL NON-CURRENT LIABILITIES

-

-

-

-

47,813

46,310

47,374

45,972

Investments TOTAL NON-CURRENT ASSETS

NON-CURRENT LIABILITIES

NET ASSETS

For and on behalf of the T큰wharetoa M훮ori Trust Board

Trustee

Trustee

Date 08.02.2012

Date 08.02.2012

The accompanying accounting policies and notes form part of these financial statements

41

Tūwharetoa Māori Trust Board

Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2011

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

Receipts from Licences, Grants, etc.

3,015

14,518

3,327

12,283

Investment Income

1,147

711

1,147

711

155

83

155

83

4,317

15,312

4,629

13,077

2,529

4,003

2,338

1,940

CASH FLOW FROM OPERATING ACTIVITIES

Cash was provided from:

Dividend Income

Cash was disbursed to: Payment to suppliers and Employees Interest Paid Distributions made

-

-

-

-

615

831

615

831

3,144

4,834

2,953

2,771

1,173

10,478

1,676

10,306

-

68

-

-

-

68

-

-

Net Cash Inflow/(Outflow) from Operating Activities

Note 13

CASH FLOW FROM INVESTING ACTIVITIES

Cash was provided from: Proceeds from Sale of Assets

Cash was applied to: Purchases of fixed assets

68

78

68

78

Purchase of Investments

1,258

10,756

1,805

10,477

-

120

-

260

1,326

10,954

1,873

10,815

(1,326)

(10,886)

(1,873)

(10,815)

Loan Advancement

Net Cash Inflow/(Outflow) from Investment Activities

42

The accompanying accounting policies and notes form part of these financial statements

Tūwharetoa Māori Trust Board

Statement of Cash Flows

FOR THE YEAR ENDED 30 JUNE 2011

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

-

-

-

-

-

-

-

-

-

77

-

-

-

77

-

-

-

(77)

-

-

(509)

CASH FLOW FROM FINANCING ACTIVITIES

Cash was provided from: Loans Provided

Cash was disbursed to: Repayment of Loans

Net Cash Inflow/(Outflow) from Financing Activities

NET INCREASE (DECREASE) IN CASH HELD

(153)

(485)

(197)

Opening Cash

333

818

376

885

CLOSING CASH BALANCE

180

333

179

376

The accompanying accounting policies and notes form part of these financial statements

43

Tūwharetoa Māori Trust Board

Statement of Accounting Policies FOR THE YEAR ENDED 30 JUNE 2011

Reporting Entity The Tūwharetoa Māori Trust Board is a Māori Trust under the Māori Trust Boards Act 1955.

The Group consists of the Tūwharetoa Māori Trust Board, its subsidiary company Tūwharetoa Health Services Limited (THSL) and THSL’s associate Lake Taupō PHO Limited.

The Financial Statements and Group Financial Statements of the Tūwharetoa Māori Trust Board have been prepared in accordance with the requirements of the Māori Trust Boards Act 1955.

The general accounting principles recognised as appropriate for the measurement and reporting of results and financial position on an historical cost basis have been followed, except for the subsidiary entity, Tūwharetoa Health Services Limited, which has been prepared on a realisation basis.

Accounting Policies The following particular accounting policies which materially affect the measurement of results and financial position have been applied: 1 Leases

Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of owner

ship of the leased items, are charged as expenses in the periods in which they are incurred.

2 Investments

Investments are stated at the Market Value.

3 Goods and Services Taxation

The Financial Statements have been prepared exclusive of goods and services tax (GST) with the exception of

receivables and payables which are stated with GST included. Where GST is irrecoverable as an input tax then it

is recognised as part of the related asset or expense.

44

Tūwharetoa Māori Trust Board

Statement of Accounting Policies FOR THE YEAR ENDED 30 JUNE 2011

4 Employee Entitlements

Provision is made in respect of the Trust Board’s liability for accrued annual leave. Annual leave has been

calculated on an actual entitlement basis at current rates of pay.

5 Taxation

The Trust Board and Tūwharetoa Health Services Limited are separately registered as charitable entities under

the Charities Act 2005 and are not liable to taxation.

6 Consolidation

The Consolidated Financial Statements include the Tuwharetoa Maori Trust Board, its subsidiary company

Tūwharetoa Health Services Limited (THSL) and THSL’s associate company Lake Taupō PHO Limited.

In the Tūwharetoa Māori Trust Board Financial Statements the investment in Tūwharetoa Health Services Limited

is stated at cost.

45

TĹŤwharetoa MÄ ori Trust Board

Statement of Accounting Policies FOR THE YEAR ENDED 30 JUNE 2011

7 Impairment

If the recoverable amount of an item of property, plant and equipment is less than its carrying amount, the

item is written down to its recoverable amount. The write down of an item recorded at historical cost

is recognised as an expense in the statement of financial performance. When an item is revalued, it is written

down to recoverable amount, the write down is recognised as a downward revaluation.

The carrying amount of an item of property, plant and equipment that has previously been written down to

recoverable amount is increased to its current recoverable amount if there has been a change in the estimates

used to determine the amount of the write down. The increased carrying amount of the item will not exceed the

carrying amount that would have been determined if the write down to recoverable amount had not occurred.

Reversals of impairment write downs are accounted for as follows:

* On property, plant and equipment that are not revalued, the reversal is recognised in the statement of

financial performance; and

* On revalued property, plant and equipment, the reversal is recognised as an upward revaluation.

8 Non-current Investments

Investments in listed companies are stated at valuation. Fixed interest investments are valued at market

valuation. Other non-current investments are stated at cost.

46

Tūwharetoa Māori Trust Board

Statement of Accounting Policies FOR THE YEAR ENDED 30 JUNE 2011

9 Lake Bed and Other Property, Plant and Equipment

Property, plant and equipment are valued at cost less accumulated depreciation. The Lake Taupō lake bed was

recognized in 1998 as an asset at deemed cost. (Deemed cost was calculated on the basis of the discounted

cashflow of future revenues).

There are six classes of fixed assets:

• Land • Buildings

•

Office Furniture and Equipment

•

Technical Fixtures and Fittings - 97.2 FM

•

Motor Vehicles

•

Plant & Equipment – Asset Management Unit

10 Depreciation

Depreciation is provided on all tangible fixed assets other than freehold land and the lake bed, at rates which

will write off the cost of the assets, less their estimated residual values, over their useful lives.

The useful lives of major classes of assets have been estimated as follows:

•

Buildings

33 to 100 years (1% to 2.5% SL)

•

Motor Vehicles

5 years

•

(20% DV)

Office Furniture & Equipment

2 to10 years

(10% SL-60% DV)

Fittings - 97.2 FM

6 to 10 years

(10% to 18% DV)

Asset Management Unit

5 to 10 years

(10% SL–60%DV)

•

47

Tūwharetoa Māori Trust Board

Statement of Accounting Policies FOR THE YEAR ENDED 30 JUNE 2011

11 Financial Instruments

All financial instruments to which the Trust Board is a party are recognised in the financial statements.

Credit Risk

In the normal course of business, the Trust Board incurs credit risk from debtors and transactions with banking

institutions. The Trust Board manages its exposure to credit risk by:

•

holding bank balances and deposits with New Zealand registered banking institutions; and

•

maintaining credit control procedures over trade debtors.

The Trust Board has no significant concentration of credit risk. The maximum exposure at balance date is

equal to the amount of bank balances, debtors and loans and advances disclosed in the Statement of Financial

Position. Debtors, loans and advances considered uncollectable are written off.

Currency Risk

The Trust Board has no currency risk.

Fair Values

As at 30 June 2011 the fair values are the same as the carrying amounts for the financial instruments held by the

Trust Board (2010 - the fair values were the same as the carrying amounts).

48

Tūwharetoa Māori Trust Board

Statement of Accounting Policies FOR THE YEAR ENDED 30 JUNE 2011

12 Statement of Cash Flows

Cash means cash balances on hand, held in bank accounts, demand deposits and other highly liquid

investments in which the Trust Board invests as part of its day-to-day cash management.

Operating activities include cash received from all income sources of the trust board and records the cash

payments made for the supply of goods and services.

Investing activities are those activities relating to the acquisition and disposal of non-current assets.

Financing activities comprise the change in equity and debt capital structure of the Trust Board.

13 New Zealand International Financial Reporting Standards (NZ IFRS)

The Board has taken the option available under ARSB’s Release 9 to delay the adoption of NZ IFRS.

These accounts have been prepared in accordance with NZ GAAP in operation before NZ IFRS was adopted.

14 Changes in Accounting Policies

All policies have been applied on a basis consistent with the prior year.

49

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

1 NET OPERATING PROFIT BEFORE TAXATION

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

1,503

22,710

1,402

22,418

20

20

20

20

6

6

-

-

108

126

108

126

-

4

-

-

2

2

2

2

- Motor Vehicles

28

11

28

11

- Office Equipment and Furniture

19

20

19

20

- Technical Fixtures & Fittings - 97.2FM

1

1

1

1

- Asset Management Unit

3

6

3

6

Loss on Disposal of Fixed Assets

-

28

-

-

18

30

-

-

-

11

-

-

Movement in Provision for Doubtful Debts

(12)

(12)

-

-

Distributions - Trust Board (Note 13)

615

831

615

831

1,147

711

1,147

711

Dividend Income

155

82

155

82

Discount unwind on receivable form the Crown

671

-

671

-

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

46,310

23,600

45,972

23,554

Net Operating Profit Before Taxation After Charging: Remuneration of Auditor - Audit NZ Remuneration of Auditor - Silks Remuneration of Trustees Remuneration of Directors Depreciation - Buildings

Interest Expense: - IRD Interest and Penalties - Overdraft and Loans

After Crediting: Interest Income

2 RETAINED EARNINGS

Retained Earnings at beginning of year Operating Surplus after Taxation

1,503

22,710

1,402

22,418

Retained Earnings at end of year

47,813

46,310

47,374

45,972

50

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

3 TAXATION

Profit Before Taxation

GROUP

GROUP

2011

2010

$000

$000

1,503

22,710

There is no taxation payable on the income of the Tūwharetoa Māori Trust Board or Tūwharetoa Health Services Ltd.

Imputation Credit Account Tūwharetoa Health Services Limited had a balance of $NIL in the imputation credit account at 30 June 2011. (2010 NIL)

4 RECEIVABLES

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

1,916

1,300

1,143

1,127

-

(13)

-

-

1,916

1,287

1,143

1,127

10,685

11,028

10,685

11,028

-

-

-

-

10,685

11,028

10,685

11,028

(a) Current Accounts Receivable Less: Provision for Doubtful Debts

(b) Non - Current Accounts Receivable Less: Provision for Doubtful Debts

51

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

5 BANK OVERDRAFT The Tūwharetoa Māori Trust Board does not have a bank overdraft facility.

Tūwharetoa Health Services Ltd has a bank overdraft facility of $100,000 secured both over its business assets to the value of $100,000, and by directors’ guarantees.

6 PAYABLES AND ACCRUALS

Trade Creditors and Accruals Accrued Staff Entitlements

52

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

379

490

294

414

51

37

51

37

430

527

345

451

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

7 LAKEBED

a) By deed dated 28 August 1992 the Crown agreed that: - the ownership of the bed of Lake Taupō.

- the bed of the Waikato River extending from Lake Taupō to and inclusive of the Huka falls (excluding the site of the Taupō Control Gates) and - the beds of certain rivers and streams flowing into Lake Taupō, as set out in the schedule to a proclamation made on the 7th October 1926 and amended by proclamation on 18 February 1927 (excluding the Tongariro Hatchery Camping Ground) be vested in the Board to be held in trust.

The Lakebed has been vested in the Board to be held in trust for: - In relation to the bed of Lake Taupō, the Board’s beneficiaries; and - In relation to the beds of specified part of the Waikato River and certain rivers or streams flowing into Lake Taupō; and - In relation to all such beds, the common use and benefit of all the peoples of New Zealand to continue to have freedom of entry to and access upon such beds as set out in the 1992 Deed.

The Lakebed has been valued at 1998 discounted cashflow of future revenues using a discount rate of 7%. b) In accordance with the 1992 Deed which described them as “Taupō Waters” Taupō Nui A Tia Block, Te Awa O Waikato Ki Te Toka O Tia Block and Te Hokinga mai o te papa kite Poari hei Kaitiaki o nga Hapu o Ngati Tuwharetoa Block were vested in the Board by the Māori Land Court and declared to be Māori freehold land.

The 1992 Deed established that: - the people of New Zealand’s freedom of entry to and acess upon Taupō Waters for non-exclusive, non-commercial recreational use and enjoyment and non-commercial research purposes free of charge is preserved; and - Taupō Waters shall be managed as if it were a reserve for recreational purposes under section 17 of the Reserves Act 1977 in partnership between the Crown and the Board through a management board known as Taupō-nui-a-Tia Management Board.

c) As disclosed in Note 16, the Tūwharetoa Māori Trust Board signed a new deed of settlement dated 10 September 2007, which records the agreement reached with the Crown to clarify and replace the 1992 Deed.

53

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

8 OTHER PROPERTY, PLANT & EQUIPMENT

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

32

32

32

32

Buildings

138

129

138

129

Motor Vehicles

128

83

128

83

Office Furniture and Equipment

200

185

200

185

AT COST Land

WIP - Office Equipment

-

-

-

-

Technical Fixtures and Fittings - 97.2 FM

45

45

45

45

Plant & Equipment - Asset Management Unit

79

79

79

79

622

553

622

553

ACCUMULATED DEPRECIATION Land Buildings Motor Vehicles Office Furniture and Equipment Leasehold Improvements Technical Fixtures and Fittings - 97.2 FM Plant & Equipment - Asset Management Unit

-

-

-

-

55

52

55

52

73

45

73

45

134

114

134

114

-

-

-

-

39

39

39

39

72

69

72

69

373

319

373

319

Land

32

32

32

32

Buildings

83

77

83

77

Motor Vehicles

55

38

55

38

Office Furniture and Equipment

66

71

66

71

WIP - Office Equipment

-

-

-

-

Technical Fixtures and Fittings - 97.2 FM

6

6

6

6

Plant & Equipment - Asset Management Unit

7

10

7

10

249

234

249

234

NET BOOK VALUE

54

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

9 INVESTMENT IN SUBSIDIARY

GROUP

GROUP

2011

2010

Shares in Subsidiary - Tūwharetoa Health Services Limited Tuwharetoa Health Services Limited - percentage held

100

100

100%

100%

Tūwharetoa Health Services Limited is a health provider, with a 30 June balance date.

10 INVESTMENT IN ASSOCIATE

Shares in Associate - Lake Taupo PHO Limited

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

150

-

-

50%

-

-

-

Percentage held

Lake Taupō PHO Limited is a primary Health Funding Service with a balance date of 30 June.

Since balance date 50% of Pihanga Health 2007 Limited shares have been transferred into the name of Tūwharetoa Health Services Limited as a result of the windup of Lake Taupō PHO Limited.

Share of recognised revenues and expenses

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

-

228

-

-

496

268

-

-

-

228

-

-

496

-

-

Share of equity Balance at beginning of year Share of recognised revenues and expenses Associates Disposed of Balance at end or year

(496) -

The investments of Tūwharetoa Health Services Limited have been classified as current for the year ended 30 June 2011, as it is the intention of the Directors to wind up the company.

55

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

11 OTHER INVESTMENTS

Managed by Taupo Moana Funds Ltd

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

25,221

23,416

25,221

23,416

25,221

23,416

25,221

23,416

Current Cash

691

10,013

NZ Money Market

1,412

3,126

Fixed Interest

1,146

18

3,249

13,157

Maturity 2012

2,755

343

Maturity 2013

2,612

807

Maturity 2014

3,068

875

Maturity 2015

2,514

2,458

Maturity 2016

3,294

747

Maturity 2017

554

-

Maturity 2018

-

2,370

Maturity 2037

2

3

14,799

7,603

Australasian

2,231

1,497

International

3,780

1,159

6,011

2,656

1,162

-

25,221

23,416

Non-current

Fixed Interest

Equities

Property

Total Investments

56

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

12 EXPENSES - DISTRIBUTIONS Distributions have been made to or on behalf of beneficial owners by way of the following:

Education Alliance Education Medical Paramountcy

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

-

-

-

-

221

197

221

197

23

22

23

22

150

156

150

156

Koha

50

22

50

22

Marae Insurance

79

55

79

55

Tuwharetoa Trust

-

-

-

-

Nitrate Project

2

5

2

5

Marae Grant

50

315

50

315

Scholarships

-

10

-

10

Kohanga Reo

-

7

-

7

Other Grants

40

42

40

42

615

831

615

831

Distributions paid by the Trust Board

57

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

13 RECONCILIATION OF NET PROFIT AFTER TAXATION WITH CASH OUTFLOW FROM OPERATING ACTIVITIES

GROUP

GROUP

TRUST BOARD

TRUST BOARD

2011

2010

2011

2010

$000

$000

$000

$000

1,503

22,710

1,402

22,418

53

40

53

40

-

27

-

-

1,556

22,777

1,455

22,458

(Increase)/Decrease in receivables and prepayments

(286)

(12,009)

327

(12,057)

Increase/(Decrease) in payables and accruals

(111)

(141)

(120)

(96)

14

(149)

14

1

Reported operating surplus after taxation

Add back non-cash items: Depreciation Loss on Sale of Assets

Add/(Less) Movements in Working Capital

Increase/(Decrease) in Employee entitlements Increase/(Decrease) in Revenue received in advance

Net Cash Inflow/(Outflow) from Financing Operating

-

-

-

-

(383)

(12,299)

221

(12,152)

1,173

10,478

1,676

10,306

14 STATEMENT OF CONTINGENT LIABILITIES As at 30 June 2011 the quantifiable contingent liabilities for the Tūwharetoa Māori Trust Board and group were NIL (2010: NIL).

The 2007 Deed (see note 8) allows for an adjustment to be made for revenue from the Crown, if revenue from fishing and boating falls below a threshold. Due to a current lack of information, the Board is unable to determine whether there is either any amount that is payable back to the Crown or any additional revenue receivable from the Crown.

A former employee of Tūwharetoa Health Services Limited has filed a personal grievance claim against the company.

The cost of the claim is not known at balance date (2010: NIL).

15 STATEMENT OF COMMITMENTS As at 30 June 2011 capital commitments were NIL (2010 NIL).

58

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

16 LAKEBED SETTLEMENT The Tūwharetoa Māori Trust Board signed a new deed of settlement dated 10 September 2007, which records the agreement reached with the Crown to clarify and replace the 1992 Deed.

The deed agreement between the Board and the Crown, vests the Lake Bed of Lake Taupō to the Board to be held in trust for the Board’s beneficiaries. Section 24c of the Maori Trust Boards Act 1955 stipulates that:

“Notwithstanding anything in any other provision of this Act, a Board may accept and hold or otherwise deal with any property upon trust for the benefit of the Board’s beneficiaries or any of them or for the benefit of any group of persons which includes any such beneficiaries. Any property held by a Board pursuant to this section shall be dealt with in accordance with the terms of the trust and shall not constitute an asset of the Board for the general purposes of this Act.”

The intention of the Board is to establish Taupō Waters Trust (the Trust) as its mechanism to hold the Lake Bed in trust for its beneficiaries. Once the Trust is established, the Lake Bed will be transferred to the Trust, and income derived from the Lake Bed will be held within Taupō Waters Trust and will be distributed for charitable purposes to support beneficiaries.

Income derived from the Lake Bed is held within Taupō Waters Trust and is distributed for charitable purposes to support beneficiaries.

17 WAIKATO RIVER SETTLEMENT On 31 May 2010, a Deed of Settlement (the “Settlement”) was made between the Crown and The Board to settle the claim by the Board for the Waikato River.

The Settlement, being the redress value, is specified as $9.5m plus $20m over a period of 20 years. The Settlement is to be realised as follows: (a) Co-Management Fund shall be received for the purpose of assisting the Board to engage in new co-management arrangements under the settlement. The Co-Management funding of $9.5m shall be received on settlement date with an annuity of $1m per year for 20 years. The Co-Management funding has been valued based on a discounted cash flow method using the NZ Government Bond coupon rate for bonds.

59

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

18 RELATED PARTY TRANSACTIONS Sir Tumu te Heuheu is Paramount Chief of Tūwharetoa and Chairman of the Tūwharetoa Māori Trust Board. In 2010 the Tūwharetoa Māori Trust Board paid $150,000 in supporting Paramountcy activities ($154,792 in 2010).

The Taupō-nui-a Tia Management Board referred to in note 8 (Lake Bed) comprises 4 to 8 members of which the Trust Board appoint half and the Crown appoints an equivalent number.

During the year, Board member Tyronne Smith was paid for services as acting secretary costing $6,000 (2010 $0).

The services were supplied on normal commercial terms.

During the year, Board member Te Kanawa Pitiroi received payments of $5,929 as Kaumatua on the Cultural Knowledge Project.

There are close family members of the board members employed by the board. The terms of those arrangements are no more favourable than the Board would have adopted if there were no relationship to Board members.

The Board made a Koha payment of $0 (2010 $5000) to the family of a board member that passed away during the year.

The Board made Koha Payments of $8,250 (2010: $2,500) to the Pukawa Marae for the use of their Marae. The Secretary is the Chairperson of Pukawa Marae.

During the year, the Board purchased accounting services from DA Loughlin Limited, an accounting firm in which Board Member Mr Danny Loughlin is a Director. These services cost $10,000 (2010: $175) and were supplied on normal commercial terms.

During the year, the Board provided funds to Tūwharetoa Social Services, an entity in which a family member of Board Member Mr James Biddle is employed. The funds provided $0 (2010: $17,000) were no more favourable than the board would have provided if there were no relationship to the Board.

60

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

18 RELATED PARTY TRANSACTIONS CONTINUED The Board had transactions with the following related parties of Board members: $ 2011

$ 2010

Kaumatua grant

0

165

Kaumatua grant

0

200

Jim Biddle

Kaumatua grant

800

0

Timoti Te Heuheu

Kaumatua grant

800

0

BOARD MEMBER

RELATED PARTY

NATURE OF TRANSACTION

Jim Biddle

Margaret Biddle

Jim Biddle

Nola Biddle

John Bishara

Eva Bishara

Kaumatua grant

0

200

Te Kanawa Pitiroi

Damen Pitiroi

Sports Grant

0

1,000

Te Kanawa Pitiroi

Kataraina Pitiroi

Kaumatua grant

200

0

Te Kanawa Pitiroi

Michael Pitiroi

Education grant

410

0

Paranapa Otimi

Marie Otimi

Education grant

410

0

John Bishara

Shontell Bishara

Education grant

410

0

Danny Loughlin

Whanganui Bay Marae

Grant for renovation of marae

0

50,000

Jim Biddle Heemi Biddle

Korohe Marae Committee

Grant Tangi Koha

0 500

30,500 0

Te Kanawa Pitiroi

Waitetoko Marae

Grant for renovation of marae Use of Marae Cultural Knowledge Project

0 600

50,000 0

Paranapa Otimi John Bishara

Waihi Marae

Grant for renovation of marae Use of Marae - J Mataparae Visit and Val Raymond Project

0

50,000

5,680

0

1,000

0

0

17,000

Tyronne Smith

Ngati Hikaro Ki Tongariro Charitable Trust

Hapu Korero Cultural Knowledge Project

Jim Biddle

Tuwharetoa Iwi Social Service

"Payment for the services the entity provides to the community

Danny Loughlin

Tuwharetoa Health Charitable Trust

Loan to contribute to the set up of the Trust Contribution for Action Plan

0 500

160,000 0

Te Kanawa Pitiroi Jim Biddle Tumu Te Heuheu

Lake Taupo Forest Trust

The Board's contribution towards legal costs

0

7,067

Te Kanawa Pitiroi Jim Biddle Tumu Te Heuheu

Lake Taupo Management Ltd

The Board's contribution towards legal costs

16,732

18,283

Te Kanawa Pitiroi

Ngati Tuwharetoa Fisheries Charitable Trust

Reimbursement of costs for advisor used on Water Issues

1,022

7,896

Te Kanawa Pitiroi Jim Biddle Tumu Te Heuheu

Lake Taupo Charitable Trust

"Funding provided to the Trust for heating of homes project.”

0

10,000

Paranapa Otimi Tyronne Smith

Wai 575

Grant

50,000

0

61

Tūwharetoa Māori Trust Board

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

18 RELATED PARTY TRANSACTIONS CONTINUED Investments held by a related party on behalf of the Board The Board holds funds with the following entity which has three Board members in common (Tumu Te Heuheu, Te Kanawa Pitiroi and Jim Biddle)

GROUP $

Board's investments held by Taupo Moana Group

2011

GROUP $

25,221,383

2010

23,416,079

Related party transactions with subsidiary The Board is the ultimate parent of the group and controls anther entity, being Tūwharetoa Health Services Limited

GROUP $

2011

GROUP $

2010

Tuwharetoa Health Services Limited Loan payable to the Board

250,000

250,000

19 PAYMENTS TO BOARD MEMBERS The total amount paid to Board members as remuneration was $108,000 (2010 - $129,029).

A meeting fee of $1,000 gross per month has been paid to Board members ($2,000 for the Chairman) for each meeting attended.

20 BUDGET APPROVAL

The budget for the year ended 30th June 2011 has been forwarded to the Minister of Maori Affairs as required by S32(1) of the Māori Trust Boards Act 1955. The Board has received the Minister’s approval.

21 SECRETARY’S REMUNERATION

Section 19(4) of the Māori Trust Boards Act 1955 requires that the rate of remuneration of the Secretary shall be fixed only with the prior approval of the Minister of Māori Affairs. The Board has not yet sought approval.

62

63