Annual Report 2020

Page 1

Annual Report 2020


Annual Report 2020

WAIRARAPA MOANA INCORPORATION


Message from the Chair Ko tēnei te mihi ki te atua, te kaihanga o te rangi me te whenua, koinā te timatanga me te whakamutunga nō reira kia hōnoretia tōna ingoa tapu i ngā wā katoa ake tonu atu, ae. Mihi mai ki o tātau mate, a rātau mā kua riro nei i te pō, o te tau, te marama i te wa o te kowheori-19. Haere atu rā koutou ki te ope o te rua o Matariki, moe mai, haere, haere, atu rā. Nō reira, koutou ki a koutou, tātau te hunga ora ki a tātau, tēnā tātau katoa. Tēnā koutou ngā Rangatira kaitiaki o Te Karu o te Ika a Maui. Anei te ripoata o te tau 2020. Kingi Smiler

Milk prices increased in 2020 to $7.02 from $6.32 in 2019, a significant improvement. The current forecast for 2021 ranges from $5.90 to $6.90. In addition to the continuing Trump Trade War with China we have had to contend with a COVID-19 world pandemic that forced New Zealand into Level 4 lockdown on March 25, 2020 and moved back to Level 1 on June 8, 2020.

dairy land prices of 5.5% totalling approximately $8.4 million but is considered relatively modest compared to the current market conditions and the overhang of COVID-19 concerns. The bank debt ratio is 19.7% similar to last year.

This was further compounded by significant drought conditions in our region from December through to the end of April.

Looking forward COVID-19 will continue to impact on the world’s health and the markets and create significant disruption and uncertainty for us all. We can take some positives that we are an ‘essential food business’ and our major customer China has recovered quicker than most, notwithstanding the ongoing political and Trump Trade War challenges.

Despite these major challenges we have increased milk production by approximately 525,000 kgs of milk solids, a 12.4% increase compared to 2019, together with an 11% price increase from $6.32 in 2019 to $7.02 in 2020. This was offset by an increase in supplementary feed costs driven by the extended drought conditions and price increases. This resulted in an increased operating profit $4,657,000 to $8,321,000 compared with $3,664,000 in 2019, an outstanding result under the circumstances. Overall the net profit after tax was $9,067,000 up from $8,138,000, 2019. The net equity of WMI is $220 million down slightly from 2019 of $221 million. This was significantly affected by a general decline in

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ANNUAL REPORT 2020

At home, in addition to the new Green House Emission and Carbon Zero Targets, the new Freshwater Regulations recently introduced to improve water quality will be phased in over the next five years’ as well as likely future changes will impact significantly on our farming enterprise systems and potentially on our financial returns. The Committee recommends the following distribution in 2020: Gross Dividend

$1,000,000


Farm 12.

WAI 85 We have continued to provide our shareholders with detailed updates on progress with our Wai 85 claim. Since the Preliminary Waitangi Tribunal Decision was released on March 24, 2020 first Mercury Energy (Mercury) and then the Crown and Ngāti Raukawa have filed Judicial Review Proceedings challenging the Preliminary Decision. The hearing date is currently set down for October this year but both Mercury and the Crown are seeking to delay the proceedings. The Crown continues to frustrate the process as much as possible as well as continuing their ‘divide and rule tactics’ between WMI and the Settlement Trust. WMI applied to the Waitangi Tribunal for a formal mediation process with the Settlement Trust which was opposed by the Crown and therefore as a result declined by the Tribunal, which was disappointing for everyone.

Notwithstanding, we have approached the Settlement Trust directly to engage in a mediation process in the hope that we can reach an agreement on behalf of our owners as well as all of the whānau of Ngāti Kahungunu ki Wairarapa to work together to get a ‘fair and just’ outcome with the Crown to settle our Treaty Claims. We will continue to advise our owners on progress. All our WMI team, Committee members, employees and advisors continue to provide great service to our shareholders and I acknowledge their efforts on our behalf where we have achieved a very good financial result this year despite the impact of COVID-19 and a dairy season affected by a major drought. Kingi Winiata Smiler chairman wairarapa moana incorporation

WMI continues to reach out to the Settlement Trust and is making every possible effort to mediate an agreement on behalf of our owners and Ngāti Kahungunu ki Wairarapa, to get a fair and just outcome.

WAIRARAPA MOANA INCORPORATION

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Key Performance Measures

Ngā Tangata PEOPLE

Te Taiao

Miraka

Ngā Kau

ENVIRONMENT

MILK

COWS

69

350ha Number of

136,033 Average

hectares (ha) replanted in pine trees.

Somatic Cell Count for all Farms.

Fulltime staff employed.

5

Fulltime staff employed for more than 10 years.

0.7ha Number of

27

hectares (ha) of native tree plantings on farms.

External Training – 9 staff achieved their Level, 2, 3 or 5 Primary ITO and overall 27 staff attended courses.

52ltr

Dairy shed water use, 52 litres per cow per day.

4 Internal Training – 4 days held for the year covering bull training, basic skills, vehicle maintenance, fire extinguishers and reproduction.

3

Lost time injuries totalling 29 days for the year.

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ANNUAL REPORT 2020

82,772

Lowest Average SCC – Farm 2.

7

Grade Free Farms.

2

Number of farms in Top 10 of Miraka for milk quality (Farm 2 and Farm 12).

63%

6 week In Calf Rate. Mating date a week earlier in 2019.

413kg

Kilograms of milk solids – Average Production per Cow.

25%

Replacements reared as a percentage of peak cows.

11,495 Total cows (Managed Farms 10,625).


Committee of Management (L–R) Te Horipo Karaitiana, Sonya Rimene, Kingi Smiler, Anne Carter, Murray Hemi.

Dividends Paid

Taurikura PROSPERITY MEASURES

2.0

76 Average WMI score in Te Ara Miraka

2

1.5

76 points (15 cents). Miraka average supplier score was 70 points.

1.0

$9.0m

Net profit after tax – $9.0m increasing from $8.1m in 2019.

0.5

4.1% Return on Equity – increased by

0.0

1.25

1.0

0.4

3.2%

0.4

Net Profit (Loss) After Tax 16

15.0

14 12

to 19.7 percent of assets 2019 – 19.5 percent.

8

in equity from 2019.

0.4

Values in millions of dollars

19.7% Bank Debt – Increased by $0.97m $0.99m Net Equity – $0.99m decrease

0.4

2021 2020 2019 2018 2017 2016 2015 2014 2013

0.4 percentage points from the 2019 year.

Return on Assets – increased by 0.3 percentage points from the 2019 year.

0.8

0.75

10.7

10

6

9.0 4.5

8.1 6.6

4 2 0

-2.8

-1.8

-0.1

-2 -4

2021 2020 2019 2018 2017 2016 2015 2014 2013 Budget Values in millions of dollars

WAIRARAPA MOANA INCORPORATION

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General Manager’s Report Tēnā koutou katoa. Kei te mihi ki a koutou te whānau o te Koporeihana o Wairarapa Moana. The season ended 31st May 2020 brought to conclusion a very busy and successful year for Wairarapa Moana Incorporation (WMI).

Michael Allan

Highlights • Group Operating Profit $8.321m (2019: $3.664m) • Net Profit after Tax $9.067m (2019: $8.138m) • A record milk production for all WMI farms of 4,752,679 kilograms milk solids and during a drought year highlighting the benefits of our irrigation and the ‘optimise’ strategy • Successful MPI essential business registration during COVID-19 lockdown and approved management systems implemented and all milk supplied to Miraka with no COVID-19 cases • Environmental Plans started for each farm and to be completed by 30th November 2020 and plans in place for further riparian tree planting and farm amenity tree plantings • Completed the takeover of the last 50-50 sharemilker farm (Farm 9) • Successful implementation of owning our own forest crop as the second rotation arrangement on 304 hectares was completed • Two Dairy Trainees as finalists in the 2020 Central Plateau Dairy Awards.

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ANNUAL REPORT 2020


Farm 4.

Ngā Tangata (People) The executive team has had no changes in the year other than the departure of Simon McLaughlin our Technical Analyst and the employment of Charlotte Lawrence in the role. Charlotte is a Massey University graduate having completed a Bachelor of Agriculture Commerce majoring in farm management. There have been some new farm manager appointments for the start of the new season with Deon Crous on Farm 1 and Joel Leef on Farm 12. Gavin Humphreys has moved from Farm 2 to run Farm 9 which was previously our last sharemilker farm and Rolann van Zyl has moved from 2IC on Farm 15 to manage Farm 2. Roger Wereta previously the 2IC on Farm 6 has taken over as manager following Khardinn Wereta’s departure. We had two finalists in the Central Plateau Dairy Awards. Andrew Richards from Farm 11 was a finalist for dairy trainee of the year. Shivpreet Arora from Farm 3 won the following awards: • a merit award for Communication & Engagement; and • 3rd place for Dairy Trainee of the year for Central Plateau.

Training courses for our farm staff and management courses for farm managers and 2ICs has continued to be a focus. Health & Safety instruction is an important part of our culture. We want all our people to come home safely to their families every day. Our training focuses on farm hazards and potential hazard identification situations. Our statistics are in line with the previous season where we have had 30 accidents or incidents over the season. About 60% of our incidents are related to vehicles and machinery and 40% are related to lifting, pain, strains, falls and tripping over. During the year the 12 new high risks were identified with the last one being a new tomo that had developed. The risks have in turn been dealt with appropriately. Our staff continue with their ITO courses, on-farm training courses and farm managers and 2ICs undertook a three-day management training course facilitated by No 8 HR which was held in the WMI Woolshed. We also had our induction day at the start of the new season with a highlight being Murray Hemi explaining the history of Wairarapa Moana Incorporation and the examples of leadership within the Incorporation’s journey.

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Ford Rd Conversion 2019.

Farewell to Mike Colley our forestry consultant.

In the afternoon we had had our annual farm awards and a farewell to those moving on. Saying farewell to Khardinn and Eliana Wereta was sad and emotional for everyone and the team honoured them with a passionate haka. We also said goodbye to Pieter and Anna Nortje who were our sharemilkers on Farm 9 for nine years and who are retiring. We also said goodbye to another new retiree, Mike Colley, who had been our forestry consultant for 20 years. WMI thanks everyone for their efforts over the season. We have an amazingly talented team and our success comes from the collective capacity of our people and our WMI culture to deliver valued outputs. Our values of tika, whanaungatanga, rangatiratanga, wànanga and kotahitanga with the over-arching philosophy of kaitiakitanga gives us our cultural advantage and is why we are a leading agribusiness enterprise.

Ngā Kau (Cows) Our cows looked good throughout the whole year and there were only minor animal health incidents with some milk fever at the beginning of the season and a few incidents of mastitis on drying off.

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ANNUAL REPORT 2020

The numbers below exclude the sharemilker cows. • WMI Cows in peak milk were 10,625 • Total Milk Production was 4,386,037 kilograms milk solids • Average production per cow was 413 kilograms milk solids Spring 2019 mating was brought forward a week so that calving would start a week earlier. As a result, the 6 week in-calf rate dropped to 63%. We expect to pick this up again to 70% in the 2020-2021 season. Cow body condition score has been on target all season and our staff are being taught to accurately judge the animals condition score. We remain vigilant with our bio-security policy and check the history of livestock coming on to the farms which this season has been breeding bulls and some purchased in heifers. We purchased the sharemilker’s livestock and these have remained on farm. We continue with having visiting trucks and contractor equipment washed down and visitors using footbaths for sterilising their footwear. I am pleased to report WMI has had no incidence of Mycoplasma or other notifiable diseases.


Values Award to Kaharoa.

Farewell to Khardinn and Eliana Wereta.

Te Taiao

Te Mana o te Wai. We supported that this be embedded into the final National Policy Statement for Freshwater Management and are pleased this was successful.

(Environment) WMI values the environment and is kaitiaki over all the WMI lands. Our guiding policy is in our ‘Whakamaru Whenua’ document.

• Our water use continues to be monitored and we focus on reducing non-livestock water amounts where we can, for example, in our milking sheds.

Whakamaru Whenua should be a tool that is actively used by the Committee, Management and staff as kaitiaki. It should provide a code of behaviour and a clear guide when deciding on and adopting all planning and operational activities –

• Moisture levels and rainfall are measured. The rainfall graph below makes interesting reading with the second half of the season receiving little to no rain and levels well below average. We are continuing with tree planting for shade and shelter and will be planting on the dairy farms in August and September. The planting on the Kaharoa farm has nearly been completed and the wetland areas are starting to regenerate.

including day-to-day activities. • We made a submission on the proposals for freshwater management and set out our support for the fundamental concept of

Figure 1: Annual Rainfall 2019-20

180

2018-19 Average

160 140 mm per month

120 100 80 60 40 20 0

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

WAIRARAPA MOANA INCORPORATION

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Miraka tanker on farm.

Also, birds are beginning to adopt the habitat as their own and we expect their numbers to grow. The Mangakino farms have 28.5 kilometres of riparian boundary; the Waikato River boundary is 5.5 kms, the Waiteti Stream 5 kms and the Mangakino Stream 18 kms. We make sure the boundary fence remains stock proof and we will carry out selected riparian planting. We have installed a new effluent pond on farm 7 and now all our effluent ponds meet best environmental practice.

The 31 May 2020 Annual Financial Statements accrue milk at a final milk price of $7.02 per kilogram milksolid and a further 15cents for our Te Ara Miraka premium. WMI is using A2 bulls and will slowly build its herds to 100% A2 cows. The heifers we purchase in this year are in calf to A2 bulls and we will be rearing their progeny to build up the A2 heifer numbers. We expect to send some A2 milk to Miraka this season for their branded product Taupo Pure.

Taurikura

Miraka

(Prosperity)

(Milk) The WMI farms (including the share milked farm) produced a record 4,752,679 kilograms milk solids. This is the highest ever production achieved by the WMI group of farms and this was achieved in a drought year. Te Ara Miraka is the farming excellence programme all Miraka suppliers must adhere to and strive to get 100% of the points available. Each year there are slight modifications and the standards are often made harder. WMI achieved an average of 76 points (range 90 to 60) over all our farms. This in turn provided us a 15 cents per kilogram milk solid Te Ara Miraka payment. We want to improve this further and are striving to lift the average. Seven of our farms won ‘grade free’ status which was a very good result. WMI supports Miraka in its endeavours to ensure the Te Ara Miraka culture of excellence throughout the entire Miraka supply chain.

It was a profitable year with profit from operations being $8.32m which was up on the previous year by $4.66m. This was an outstanding and very pleasing result in a season of climatic challenges.

Dairy Enterprise The increase was driven by a milk price of $7.02 per Kg MS against the budget of $6.00 per Kg MS. Milk production was 4,752,679 which was 98% of budget and an excellent achievement in a drought year. Profit from Operations $8.32m Last Year Profit $3.66m

Exceeded Budget by $2.55m Budget was $5.77m

Group Milk was 4,752,679 Kg MS Budget was 4,818,005 Kg MS

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ANNUAL REPORT 2020


Shareholders visit to Miraka Factory 2019.

Whilst the per head value of livestock market value was less than last year there was an increase in numbers and overall, the carrying value of the WMI livestock increased from $21.3m to $23.9m.

The irrigation was operational on all 938 hectares of land that has the centre pivots and water application infrastructure. The Waiteti and Mangakino Streams flow rates allowed us to extract water on most days.

$ per Ha

Farm costs of production on the WMI managed farms were $4.73 per Kg MS, an increase on last year’s costs of $4.67 per Kg MS. Feed costs were higher due to the drought and the need to buy in extra feed.

Figure 2: 2019/2020 Managed Farm Results Compared to Benchmark 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Income

Enabling

Total Costs

Waikato New Zealand

Figure 3: Forest Lease Annuity Return Compared to Stumpage Returns

Log price ($/unit) and Annuity ($)

Some of the forestry land came out of second rotation and WMI took the full area being 304 hectares over. This is planted in WMI’s own pine trees and will be available for a future generation. NZ Forest Managers were appointed as our forest managers and

Wages

Source: Dairy New Zealand Economic Survey Data. Benchmark data for 2019/2020 regional trends.

250

Forestry income for the year was $1.68m being up on the 2019 year of $1.54m.

Feed Costs

Bay of Plenty WMI

The sharemilker farm (Farm 9) completed their last season of the contract and WMI purchased the herd of cows and some support livestock.

Forestry

EFS

Annuity ($nominal)/1000

Log price ($real 2020)

200 150 100 50 0

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

WAIRARAPA MOANA INCORPORATION

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General Manager Farms, Trevor Hamilton, and Operations Manager, Moana Puha.

they manage both the 304 hectares ‘WMI Own Forest’ as well as the farm woodlots. It is pleasing that all the Incorporation’s forestry related assets increased in value.

Miraka Holdings Limited The Te Ara Miraka premium is 15 cents Kg MS. One of the strategies going forward is to optimise the amount WMI can receive from Te Ara Miraka. Our investment in Miraka was increased with the purchase of a further 673,600 shares. Because WMI owns 34.56% of Miraka the investment in Miraka must be recorded using equity accounting. Miraka experienced a moderate impact from COVID-19 with its milk powder and UHT sales being slow. This together with the impact of a very rapid and temporary fall in the value of the New Zealand dollar against the United States Dollar is reflected in Miraka’s overall financial performance to the 31st May 2020.

Mangakino Township WMI’s township property increased in value by $1.16m. Property values have strengthened as the demand for properties increases. WMI made a loss from its Mangakino Properties of $156,000. It has been necessary to undertake maintenance on some of the houses to make them compliant with the new regulations for tenanted residential dwellings. There was also some refurbishment carried out on the four Manuka Street houses purchased last year and this included painting.

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ANNUAL REPORT 2020

Operations Manager, Nick Rowe.

Farm Market Values The Comprehensive Income part of the financial report shows the devaluation amount of $8.45m to the WMI farms and associated infrastructure. The market value of dairy farmland has fallen whilst dairy support land has increased. Overall, the WMI farmlands decreased in value by $8.45m. Management is not overly concerned by the fall. There is no intention to sell the land and it is an intergenerational asset. Over time it is expected that the farmland will regain its decrease in market value. From an accounting perspective the year’s operating profit has more or less been offset by the decrease in the land value.

Balance Sheet The enterprise opened with equity (net worth) of $221.0m on 1st June 2019 and closed at 31st May 2020 with equity of $220.0m. This is a decrease of $1.00m and is reflective of the negative movement in reserves being mainly the devaluation of the land and buildings. Term debt has increased by about $1.0m. The purchase of livestock and other capital items for the sharemilker takeover together with investment in Miraka was made with the increased term debt and from operating cashflow. WMI’s debt indices are conservative with debt funding being 19.7% of total assets.


Whànau on farm.

COVID-19 Impact As an industry agriculture fared reasonably well during New Zealand’s on shore experience with COVID-19. The WMI farms were classified as an ‘essential service’ and whilst it was stressful for all and at times disruptive the enterprise farmed and traded well. The rest of the world in the main is still experiencing COVID-19. The economic impact is forecast to be recessionary and New Zealand will feel some of that ‘bomb blast’. This means that going forward there will be a lot of uncertainty about what lies ahead and there is a potential material impact for the WMI enterprise. The most likely is that some asset valuations may fall and that earnings from milk and livestock sales could fall. Even though the world needs to eat and we produce and sell food, the various countries may not be able to afford to pay the current prices for agricultural produce. WMI has modelled a two-year cash flow and considered various financial scenarios including breakeven points. This is reassuring proving WMI is a going concern. The benefit of having low levels of debt provides further security for the business. Whilst we see the possibility of risks ahead in milk price, immigration affecting farm staff, devaluations of property and the supply chain being disrupted, we remain confident the business can chart its way through the probable storm and the agricultural sector will display its resilience compared to other sectors in the economy.

Thinking Forward – The 2020-2021 Season The budget for the new season has been prepared and approved by the Committee of Management. The dairy strategy can be summed up by 12-5-optimise. • 12,000 cows • 5 million Kilograms milk solids and • Optimising all the farm KPIs We have used a milk price of $6.10 per Kilogram milksolid and a Te Ara Miraka payment of 15cents a Kilogram milksolid. This milk price is lower than the current milk price future of $6.65 and we think it is best to take a conservative position due to the forecast economic impact of COVID-19. In budgeting there have been no adjustments made for movement in asset values or in budgeted comprehensive income. The farm strategy includes reviewing the dairy support operations and nurturing all our people. All the WMI farms will be managed farms and this will streamline operations, minimise distractions and further unite the WMI culture and values.

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Acknowledgements The management team would like to acknowledge the mentoring and business insights the WMI chair Kingi Smiler brings to the management function and the on-going dedication to excellence. Thank you to the Committee of Management for its support and insights throughout the year and its guidance when needed. Thank you to Charmaine Kawana and her team in Masterton and Alice Wichman and the Taupo office team for their support and keeping the administration and accounting wheels turning. Karol Good our in-house Residential Property Manager managed the trades people well and all the residential tenancies. Trevor Hamilton GM of Farms, Moana Puha, Nick Rowe and Charlotte Lawrence you are a great operations team and lead a group of the very best farm managers who have worked with their farm teams to deliver an excellent operating result.

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ANNUAL REPORT 2020

Brett Bennett from Whakatane based FARMit Accountants is chair of the Audit and Risk Committee. Brett’s input has always been useful and is taken on board and helps make us a better performing agribusiness. Thank you to the shareholders of Wairarapa Moana Incorporation. It is a privilege to work for WMI and to be trusted to manage and protect your assets. I assure you the management team takes the responsibility very seriously. Michael Allan group general manager wairarapa moana incorporation


Financial Report Results in Brief WAIRARAPA MOANA INCORPORATION

NZIFRS NZIFRS NZIFRS NZIFRS NZIFRS Restated Budget 2021 2020 2019 2018 2017 12 Mths 12 Mths 12 Mths 12 Mths 12 Mths

STATEMENT OF COMPREHENSIVE INCOME (NZIFRS) / STATEMENT OF PROFIT AND LOSS (GAAP) Commodity Milk Price per kg milk solids $6.10 $7.02 $6.32 $6.53 $5.57

$000 $000 $000 $000 $000 36,984 (27,452)

35,598 (22,293)

28,146 (19,378)

29,362 (19,482)

24,591 (18,358)

Gross Profit (Loss) from Dairy Farm Operations

9,532

13,305

8,768

9,880

6,233

Total Other Income

2,265

2,224

2,095

2,936

3,356

Revenue from Dairy Farming Operations Cost of Production

Gross Profit 11,797 15,529 10,862 12,816 9,589 Administrative Expenses (2,105) (2,194) (2,007) (1,309) (1,110) 9,692 13,335 8,855 11,507 8,479 Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDAF) Finance Expense (3,100) (2,990) (3,178) (3,687) (3,836) Depreciation and Amortisation Expense (2,090) (2,024) (2,013) (1,830) (1,727) 4,502 8,321 3,664 5,990 2,916 Operating Profit/(Loss) after Financing, Depreciation and Amortisation Costs Other Items Realised Gain on Sale of ETS Credits – – – – 265 Share of Profit (Loss) from Miraka Limited 1,037 (755) 890 2,400 265 Gain on Sale of New Zealand Communications Limited – – – – 614 Gain /(Loss) on Sale of Investments – – (2,079) – – – – 349 – – Realised Capital Gain on Sale of Township Properties (120) (107) (10) – (85) Grants – Wairarapa Moana Trust Revaluation of Forestry Asset – 2,470 2,110 740 2,200 – 1,168 2,607 903 324 Revaluation (Devaluation) of Township Revaluation (Devaluation) of Livestock Valuation-Holding Gain (Loss) – (858) 729 1,903 798 – 180 (20) (293) 560 Revaluation of Farm Woodlots & Own Forest Total Other Items 917 2,098 4,576 5,653 4,941 Net Profit/(Loss) Before Tax 5,419 10,419 8,240 11,643 7,856 Income Tax Expense (Benefit) 767 1,352 102 963 1,228 Net Profit After Tax/(Loss) for the year

4,652

9,067

8,138

10,680

6,629

WAIRARAPA MOANA INCORPORATION

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Results in Brief WAIRARAPA MOANA INCORPORATION Continued/ NZIFRS NZIFRS NZIFRS NZIFRS NZIFRS Restated Budget 2021 2020 2019 2018 2017 12 Mths 12 Mths 12 Mths 12 Mths 12 Mths

Net Profit After Tax /(Loss) for the year

4,652

9,067

8,138

10,680

6,629

Total Other Comprehensive Income/(loss) for the year Items that will not subsequently be reclassified to profit or loss:

Revaluation (Devaluation) of Property, Plant and Equipment Revaluation of Pre 1990 ETS Carbon Credits Income Tax Relating to Comprehensive Income Movements

– – –

(8,448) 26 (20)

(1,013) 686 551

(352) 756 (47)

6,325 265 554

(8,442)

224

357

7,144

Items that may subsequently be reclassified to profit or loss:

Movement in Cash Flow Hedges Share of Other Comprehensive Income from Miraka Limited Revaluation of Financial Assets available for Sale Reclassifications to Profit and Loss Income Tax Relating to Comprehensive Income Movements

– – – – –

32 (1,885) 475 377

(548) (1,473) 3 1,429 50

139 (832) (1,337) 106 (61)

512 1,384 (92) (767) (108)

– (1,001) (540) (1,985) 929 Total Other Comprehensive Income/(loss) net of income tax – (9,442) (316) (1,628) 8,073 Total Comprehensive Income (Loss) for the Year

4,652

(375)

7,822

9,052

14,702

Note :Budget Other Income and Comprehensive Income for Budget 2020/ 2020 has not been calculated due to lack of certainly in asset revaluations.

STATEMENT OF CHANGES IN EQUITY Opening Shareholders’ Equity 220,012 221,005 214,242 205,868 191,904 Net Profit/(Loss) for the year 4,652 9,067 8,138 10,680 6,629 Total other comprehensive income – (9,442) (316) (1,628) 8,073 Total comprehensive income for the year

4,652

(375)

7,822

9,052

14,702

Contributions by and distributions to shareholders Movements in Reserves – – – – – Dividend Declared (825) (619) (1,059) (678) (400) Total contributions by and distributions to shareholders Closing Shareholders’ Equity

(825)

(619)

223,839 220,012

(1,059)

(678)

(400)

221,005 214,242 206,206

Closing Shareholders’ Equity is made up of the following components: Share Capital 46,739 46,739 46,739 46,739 46,739 Retained Earnings 62,285 58,458 50,009 42,931 34,770 Reserves 114,815 114,815 124,257 124,572 124,696 Closing Shareholders’ Equity

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ANNUAL REPORT 2020

223,839 220,012 221,005 214,242 206,205


Results in Brief WAIRARAPA MOANA INCORPORATION Continued/ NZIFRS NZIFRS NZIFRS NZIFRS NZIFRS Restated Budget 2021 2020 2019 2018 2017 12 Mths 12 Mths 12 Mths 12 Mths 12 Mths

Biological Assets – Livestock Other Current Assets

23,977 12,075

23,931 12,075

21,380 9,200

17,456 9,754

15,355 10,637

36,052 36,006 30,580 27,210 25,992 Current Assets Property, Plant and Equipment 170,891 168,830 176,773 178,471 178,154 (Wairarapa Moana Farms and House) Investments – Miraka 32,749 31,713 32,669 34,913 33,850 1,012 1,012 1,025 2,331 3,666 Investments – Other Investment Property (Mangakino Township and Forestry Lands) 42,282 42,282 38,370 32,865 31,248 4,404 4,404 4,377 3,692 2,936 Intangible Assets (Carbon Credits) Right of Use Assets 251 283 – – – Biological Assets – Farm Woodlots & Own Forest 1,787 1,727 826 752 2,175 Non-Current Assets 253,376 250,251 254,040 253,024 252,029 Total Assets 289,428 286,257 284,620 280,234 278,021 Current Liabilities 5,282 5,282 4,120 3,539 5,028 55,787 56,411 55,437 57,887 62,887 BNZ Bank Debt Deferred Tax, Financial Instruments and Lease Liability 4,520 4,552 4,058 4,566 3,901 Non Current Liabilities

60,307

60,963

59,495

62,453

66,788

Total Liabilities 65,589 66,245 63,615 65,992 71,816 Shareholders’ Equity 223,839 220,012 221,005 214,242 206,205 KEY PERFORMANCE INDICATORS Growth/(Reduction) in net worth on opening balance $ 3,827 (993) 6,764 8,037 14,301 Growth/(Reduction) in net worth on opening balance % 1.7% -0.4% 3.2% 3.9% 7.5% Return on Closing Equity 2.1% 4.1% 3.7% 5.0% 3.2% Return on Closing Assets 1.6% 3.2% 2.9% 3.8% 2.4% Closing Bank Debt as a % of total Closing Assets 19.3% 19.7% 19.5% 20.7% 22.6% STATEMENT OF CASH FLOWS Cash Flow from Operating Activities 5,701 4,604 2,909 8,016 1,326 Cash Flow from Investing Activities (2,162) (5,174) 458 (2,421) (418) Cash Flow from Financing Activities (3,575) 443 (3,377) (6,593) 531 (36) (127) (10) (998) 1,439 Net Increase in Cash and Cash Equivalents Add Cash and Cash Equivalents at Start of Year

85

212

222

1,220

(219)

49 85 212 222 1,220 Cash and Cash Equivalents at End of Year

WAIRARAPA MOANA INCORPORATION

17


Policies

A summary of the Wairarapa Moana Ki Pouakani Incorporation (“the Incorporation”) audited financial statements for the year ended 31 May 2020 is shown in the Financial Summary section of this annual report, also shown is the summarised 31 May 2021 budget which has been drawn from the full 31 May 2021 budget approved by the Committee of Management on the 22nd April 2020. The summary financial statements have been prepared in accordance with FRS-43 Summary Financial Statements. The 31 May 2021 Budget does not include estimates for the revaluations of assets. These estimates have not been made with the lack of certainty when estimating asset movements in active markets. The Committee will obtain formal valuations at year end to report in the Financial Statements. The Committee of Management has chosen to use $6.10 as the budget milk price based on current market conditions. The full financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (“NZ GAAP”). They comply with New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and other applicable Financial Reporting Standards, as appropriate for profit-oriented entities. The Incorporation has adopted External Reporting Board Standard A1 Accounting Standards Framework (for-profit Entities Update) (“XRB A1”). For the purposes of complying with

NZ GAAP, the Incorporation is eligible to apply Tier 2 For-Profit Accounting Standards (New Zealand equivalents to International Financial Reporting Standards – Reduced Disclosure Regime (“NZ IFRS RDR”)) on the basis that it does not have public accountability and is not a large for-profit public sector entity. The Incorporation has elected to report in accordance with NZ IFRS RDR and has applied disclosure concessions. The summary financial statements are presented in New Zealand dollars and amounts are rounded to the nearest thousand dollars ($000). The amounts stated in the summary financial statements have been extracted from the full financial statements of the Incorporation, which were authorised by the Committee of Management on 31 July 2020, of which an unqualified opinion has been issued by our auditors. Unqualified audit opinions have been issued by our auditors for all years presented in the summary financial statements. Copies of the full financial statements are available from the Incorporation. The summary financial statements do not include all disclosures provided in the full financial statements and cannot be expected to provide as complete an understanding as provided by the full financial statements of the Incorporation. The summary financial statements should be read in conjunction with the statement of accounting policies and notes to the full audited financial statements.

18

ANNUAL REPORT 2020


Disclosures

RELATED PARTY RELATIONSHIPS, TRANSACTIONS AND BALANCES

2020 2019 $000 $000

Committee Members Committee member fees paid for the year Committee member expenses paid for the year including Wai85 Hui (mainly travel and accommodation) Indemnity Insurance M Hemi – Environmental Planning and Strategy Development K Smiler (Chairman) – Executive Director Fees and Costs K Smiler (Chairman) – Special Services Fees

68

42

52 7 – 225 48

74 8 6 218 168

400

517

271

139

Key Management Personnel Remuneration paid during the year

Audit and Risk Committee Brett Bennett, director of FARMit Accountants Limited Partnership occupies the position of Chair of the Audit and Risk Committee for the Incorporation. FarmIt Accountants have been engaged to provide advisory and accounting services to the Incorporation during the financial year ending 31 May 2020. Fees paid during the year

74 81

WAIRARAPA MOANA INCORPORATION

19


RELATED PARTY RELATIONSHIPS, TRANSACTIONS AND BALANCES Associates The Incorporation owns 34.56% (2019 : 33.63%) of Miraka Limited, a milk processing company located in Taupo with a balance date of 31 July. During the year milk sales to Miraka Limited accounted for 91% (2019 : 88%) of the Incorporation’s revenue. 2020 2019 $000 $000 Cash Dividends Received from Miraka during the year – 1,661

Owed by Miraka at 31 May May milk proceeds Retrospective payments for the season

2,789 6,640

1,958 4,227

9,429

6,184

Owed to Miraka at 31 May 2020

No debts from Miraka have been written off or forgiven during the year. All transactions with Miraka occur on an arm’s length basis. There are no commitments or contingent liabilities relating to the investment in Miraka. Joint Venture The Incorporation is a 50%, equal interest, limited partner of Whai Hua Limited Partnership, established for the purpose of developing and researching milk proteins to develop higher value products. No debts to Whai Hua Partnership have been written off or forgiven during the year. All transactions with Whai Hua occur on an arm’s length basis. There have been no financial transactions with the Partnership during the current financial year. Expected future costs of $25,000 will be incurred for Wairarapa Moana Incorporation’s share of independent advice in relation to the intellectual property held by Whai Hua Partnership. Equity Value a Share In accordance with the requirements of the Te Ture Whenua Màori Land Act 1993 an equity valuation of Wairarapa Moana Incorporation on a per share basis has been carried out by the auditors. The value per share as at 31st May 2020 is $5.02. (2019: $4.94) (A copy of the Certificate as to Value if required is available from the Wairarapa Moana Incorporation Masterton Office).

20

ANNUAL REPORT 2020


Annual Report 2020

WAIRARAPA MOANA TRUST


Message from the Chair Ngā mihi nui ki a koutou ngā uri o ngā tı̄puna o te moana tapu ko Wairarapa Tēnā koutou, tēnā koutou, tēnā koutou katoa.

Anaru Smiler

The international Covid-19 pandemic created an unprecedented time for the Trust, our whānau and wider community, so this year wasn’t quite business as usual. In light of the challenges the pandemic created, the Trust was not able to carry out some of its usual activity and instead focused its’ attention on supporting our whānau and wider community. We also took the time to review the focus for the Trust and identify whether there are ways Wairarapa Moana could do things differently to support the cultural and social well-being of our whānau in these changing times. We look forward to discussing this with you at our upcoming AGM.

Trustees Following the 2019 AGM, the Trust was down one trustee so it considered the best solution was to co-opt Sonya Rimene to the Trust Board. Trustees met several times throughout the year and were able to meet quorum requirements in order to make decisions.

Marae Development The Trust determined the best way to continue supporting the six tìpuna marae was to provide the allocated funding to assist with the Covid-19 recovery phase. All marae had lost significant income, not only during the lockdown period but also during the months following to July 2020. Each marae was therefore provided with a $4,165.00 boost to help improve their situation.

Wairarapa Moanatanga/ Sponsorship Leading the Kahungunu ki Wairarapa Kai Incentive, Melissa Ihaka and Paddy Mason approached the Trust for a koha to support kaumàtua and vulnerable whānau in the community during and following the peak of the pandemic. A recommendation of $8,000.00 was agreed, to assist with the continuation of kai being provided in the Wairarapa and Mangakino communities. The Trust again provided sponsorship to the Annual Golden Shears. Another successful and

22

ANNUAL REPORT 2020


Màori/Pàkeha Teams winners Matene Mason and Alex Smith.

highly entertaining 60th Anniversary Golden Shears was held, with the Trust’s continued sponsorship of the Màori/Pàkeha teams event. For the second year in a row, Wairarapa Moana is pleased to support the Waikato River Trails Summer Sizzler 2021 and sponsor the 22km Fun Run/Walk. This has become an important event for our Mangakino community.

Education Covid-19 and the fact that New Zealand went into forced lockdown meant the Trust was limited in what could be achieved against the strategic tasks and performance indicators that were presented at the 2019 AGM. Fortunately the 2020 tertiary scholarships were able to be applied for, and a total of $26,000.00 was paid to this year’s successful recipients. Each successful recipient was also provided with a $100.00 grocery gift card to a supermarket of their choosing to assist in their Covid-19 recovery phase.

Review As mentioned at the 2019 AGM, a strategic review of the Trust was undertaken to look at the opportunity to re-shape the future focus and delivery of our cultural and social programmes. Wairarapa Moana Incorporation conducted the review in consultation with the Trust,

and contracted Fomana Capital to provide independent advice. The review highlights our changing environment, climate change, innovation, technology, regional and national economic shifts, and Treaty settlements. WMI and WMT will work together to develop a new delivery mechanism, as recommended by the Independent Reviewer. In the interim, it’s business as usual and Wairarapa Moana will continue to: • provide educational scholarships • fund and support tìpuna pà and marae • fund cultural revitilsation initiatives to encourage pride and confidence in the community. Finally, I would like to thank my fellow trustees; Rutu Namana, Deborah Davidson, Tiraumaera Te Tau and Sonya Rimene for their continued contribution to the Trust. I would also like to thank Charmaine Kawana, Dallas Gillies and the wider office team for their support and efforts to help deliver the Trust’s kaupapa. “Ki te kàhore he whakakitenga ka ngaro te iwi.” Anaru Smiler chairperson wairarapa moana trust

WAIRARAPA MOANA TRUST

23


Karangawai Paringatai-Hare.

Scholarship Recipients This financial year saw 19 successful recipients in the following categories. Ngā Kete o Te Wānanga, Tertiary – 17. Ngā Mahi À-Rehe, Trades & Apprenticeships – 2. Of the 14 female and 5 male recipients, four are undertaking double degrees. Reflected in the graph are the fields of study being undertaken followed by a full list of 2020 scholarship recipients, which includes Poutama recipients – 3.

Shane Karipa and whànau visit WMI office.

In the 2020 academic year 19 scholarships were provided to tertiary, trades and apprenticeships.

Graph 1: Current Areas of Study for Scholarship Recipients 2020 FIELDS OF STUDY

Electrician

2

Law

2

Science Arts

3 3

Business & Commerce Education & Teaching

4 1

Health

5

Environment

1

Masters

2

0

1

2

3

4

5

NUMBER OF STUDENTS

24

ANNUAL REPORT 2020

6


Wairarapa Moana Trust would like to congratulate the following successful recipients of scholarships and bridging grants for 2020. TERTIARY RECIPIENTS

PROGRAMME OF STUDY

Shannon Bentley

Masters – Ecology

Andrea Rutene

Masters – Business Administration

Traceyanne Herewini

PGDip Psychological Practice

Sophie Stevenson

Bachelor of Medicine / Bachelor of Surgery

Tama Hurihanganui

Bachelor of Medicine / Bachelor of Surgery

Stevie-Rei Kenny

Bachelor of Nursing

Aroha Geange

Bachelor of Nursing

Liam Shackleton

Bachelor of Management

Chelsea Kenny

Bachelor of Business

Vanessa Te Whaiti-Trueman

PGDip Bicultural Professionalism

Olivia Luff

Bachelor of Teaching – ECE

Chloe Kenny

Bachelor of Arts

Camryn Williams

Bachelor of Laws / Bachelor of Arts

Hana Vause

Bachelor of Laws / Bachelor of Arts

Tanewhakapiripiri Rutene

Bachelor of Applied Science

Kelly-Anne Bentley

Bachelor of Science

Te Aowhiungarangi Cooper

Bachelor of Social Sciences

TRADE RECIPIENTS

TRADE AND APPRENTICESHIP

Terrence Blundell

Electrical Apprenticeship

Mose Ray

Certificate in Industrial Measurement & Control

POUTAMA GRANT RECIPIENTS

CERTIFICATE

Deborah Davidson

Real Estate – Level 4

Toni Hakopa

Medical Transcription & Editing – Level 4

Victoria Gemmell

Barber Skills – Level 3

WAIRARAPA MOANA TRUST

25


WAIRARAPA MOANA TRUST

Entity Information (Unaudited) As at 31 May 2020

Legal name of Entity

Wairarapa Moana Trust

Type of Entity and Legal Basis

Incorporated as a Charitable Trust under the Charitable Trusts Act 1957. Registered as a Charity (registration number CC37635) under the Charities Act 2005.

Entity’s Purpose or Mission Statement

Cultural, social and educational scholarships and marae grants.

Entity Structure and Governance

The trust is governed by a trust board of four (4) trustees. The trust has no audit committee. On the trust board: Chairperson Anaru Smiler

Main Sources of Cash and Resources

Trustee

Deborah Davidson

Trustee

Tiraumaera Te Tau

Trustee

Rutu Namana

The trust receives cash or resources from: • Grants from various organisations • Investment income

Main Methods Used by Entity to Raise Funds

The trust applies for grants from various organisations.

The Entity’s Reliance on Volunteers The trustees on the governing body are all and Donated Goods or Services volunteers. The trust does not receive donated goods.

26

ANNUAL REPORT 2020


WAIRARAPA MOANA TRUST

Statement of Service Performance (Unaudited) For the year ended 31 May 2020

Description of the Entity’s Outcomes: To improve the success rate in education, specifically tertiary, trade training, apprenticeships and training for employment, by succeeding in chosen fields with a clear focus on long term goals and aspirations. To accept that whakapapa and associated philosophies are a vital cultural resource for Wairarapa Moana Trust members. To support the physical and spiritual wellbeing of tìpuna Marae.

DESCRIPTION AND QUANTIFICATION (TO THE EXTENT PRACTICABLE) OF THE ENTITY’S OUTPUTS:

Waiata CD Recipients – no longer available

ACTUAL THIS YEAR

BUDGET THIS YEAR

ACTUAL LAST YEAR

5 CDs

Wairarapa Moana: The Lake and Its People – book purchased by shareholders and whànau

24 books

43 books

Gifted to shareholders and whànau

10 books

724 books

Not held

63

30

24

48 people

48 people

22 students

33 students

6,400+ people

6,400+ people

Scholarship Recipient Wànanga 2019 Te Pou Pùmau Wànanga – participants at two wànanga Tìpuna Marae Development – work with governing and operational personnel to support Marae development Scholarship Recipients Quarterly newsletters (1,600 x 4) Moana Mailer is distributed by post and via website

Additional Information: Two Poutama recipients were included and recipients received $100.00 grocery gift cards. “Awesome to have the support of the Trust for marae trustee training” – TĪPUNA MARAE TRUSTEE

All marae were grateful to receive the Marae Development funding 2020 to help with the Covid-19 recovery.

WAIRARAPA MOANA TRUST

27


Financial Report WAIRARAPA MOANA TRUST

Statement of Financial Position As at 31 May 2020

2020 2019

$ $

Current Assets BNZ Cheque account 396 1,563 BNZ Call account 35,356 27,271 BNZ Education account 53,784 216 GST Receivable 2,575 1,438 BNZ short term deposit 62,000 62,000 WBS short term deposit 30,000 30,000 7,450 7,443 Treaty Claims account Accrued Interest 515 622 Inventories 9,850 10,675 Total Assets Current Liabilities Accounts Payable Grants committed not yet paid Scholarships committed not yet paid

201,926

141,228

366 16,660 26,000

0 0 2,500

43,026

2,500

Total Liabilities

158,900 138,728 Net Assets Accumulated Funds (Note 5)

Accumulated Surpluses / (Deficits) 151,450 131,285 Reserves 7,450 7,443 158,900 138,728 Total Accumulated Funds

For and on behalf of the Board:

Deborah Davidson

Anaru Smiler

Date: 29/7/2020

Date: 29/7/2020

The statement of accounting policies and notes to the performance report form part of and should be read in conjunction with this performance report.

28

ANNUAL REPORT 2020


WAIRARAPA MOANA TRUST

Statement of Cash Flows For the year ended 31 May 2020

2020 2019

$ $

Cashflows from Operating Activities Cash was provided from Grants received 104,348 10,000 Interest 2,810 4,728 Sundry Income 683 1,154 107,841 Cash was disbursed to 5,196 Payments to Suppliers and Employees 32,271 Grants & Sponsorship paid 8,752 Scholarships 1,136 GST (net)

15,882 9,809 133,026 37,250 1,442

47,355

181,527

Net Cash provided from/(used in) Operating Activities

60,486

(165,645)

Cashflows from Investing Activities

Cash was disbursed to Fixed Assets purchased – – Net Cash provided from/(used in) Investing Activities

Cash was provided from Restricted Funds 7

7

Cashflows from Financing Activities

7 7 Cash was disbursed to Restricted Funds – – – – Net Cash provided from/(used in) Financing Activities

7

7

Net Increase/(decrease) in cash held Opening cash brought forward

60,493 128,493

(165,638) 294,131

Closing cash carried forward

188,986

128,493

The statement of accounting policies and notes to the performance report form part of and should be read in conjunction with this performance report.

WAIRARAPA MOANA TRUST

29


WAIRARAPA MOANA TRUST

Statement of Cash Flows For the year ended 31 May 2020

2020 2019

$ $

Cash is made up of: BNZ Cheque Account No. 00 396 1,563 BNZ Autocall Account No. 25 35,356 27,271 BNZ Education Account No. 03 53,784 216 BNZ Term Deposit 62,000 62,000 WBS Short Term Deposit 30,000 30,000 Treaty Claims Accounts 7,450 7,443

188,986

128,493

The statement of accounting policies and notes to the performance report form part of and should be read in conjunction with this performance report.

30

ANNUAL REPORT 2020


WAIRARAPA MOANA TRUST

Statement of Financial Performance For the year ended 31 May 2020

2020 2019

$ $

Revenue Interest Received BNZ 1,851 2,099 WBS 860 1,892 2,711 3,991 Grants Received Wairarapa Moana Incorporation 104,348 10,000

104,348

10,000

The Lake and its People Book Lake Book Sales 683 1,100 (10,675) (29,350) Less Opening Lake Books on hand Plus Closing Lake Books on hand 9,850 10,675 (142) (17,575) Sundry Income Waiata CD Sales 0 54

0 54

106,917 (3,530) Total Revenue Less Expenditure

Accountancy Bank fees General Grants (Note 8) Meeting expenses Scholarships (Note 8) Scholarships (Note 8)

3,000 40 329 38,301 3,822 32,252 9,000

2,950 79 86 94,526 6,144 37,250 0

Total Expenditure 86,744 141,035 Net Surplus/(Deficit) for the period

20,173

(144,565)

The statement of accounting policies and notes to the performance report form part of and should be read in conjunction with this performance report.

WAIRARAPA MOANA TRUST

31


WAIRARAPA MOANA TRUST

Statement of Accounting Policies For the year ended 31 May 2020 GENERAL ACCOUNTING POLICIES Reporting Entity Wairarapa Moana Trust has elected to apply PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting – Accrual (Not for profit) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000. Measurement System The measurement base adopted is that of historical cost. Reliance is placed on the fact that the Trust is a going concern. Accrual accounting is used to match revenues earned and expenses incurred. Specific Accounting Policies The following specific accounting policies which materially affect the measurement of earnings and the financial position have been applied: a Accounts Receivable Accounts receivable are stated at expected realisable value. b Goods and Services Tax All amounts are recorded exclusive of GST, except for Debtors and Creditors which are stated inclusive of GST. c Taxation Wairarapa Moana Trust is a registered charitable entity under the Charities Act 2005, and accordingly is exempt from income tax under sections CW41 and CW42 of the Income Tax Act 2007.

32

ANNUAL REPORT 2020

d Inventories Inventories are valued at cost. e Bank Accounts & Cash Bank accounts & cash in the Statement of Cash Flows comprise cash balances and and bank balances (including short term deposits) with original maturities of 90 days or less. f Revenue From Sale of Goods Revenue is recorded when the goods are sold. If the purchaser pays before they receive their goods, the trust records a liability. If the purchaser does not pay on receipt of the goods, the trust records a debtor. g Revenue From Sale of Services Revenue is recorded based on the stage of completion of the service at balance date. h Accounting Estimates & Provisions The preparation of performance reports requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. i Changes In Accounting Policies There have been no changes in accounting policies. All other policies have been applied on bases consistent with those used throughout the period (Last year – Nil).


WAIRARAPA MOANA TRUST

Notes to the Performance Report For the year ended 31 May 2020 1. Capital and Operating Commitments As at balance date there were no Capital or Operating Lease Commitments (2019: nil). 2. Contingent Liabilities As at balance date there were no Contingent Liabilities (2019: nil). 3. Events After Balance Date There are no events that have occurred after balance date that would have a material impact on the Performance Report (Last Year: $Nil). 4. Reconciliation Of Net Surplus With Cash Flow From Operating Activities 2020 2019

$ $

Net Surplus/(Deficit) for the year

20,173

(144,565)

(Increase) / Decrease in Inventories (Increase) / Decrease in Interest Accruals (Increase) / Decrease in GST Receivable Increase / (Decrease) in Payables & Accruals Increase / (Decrease) in Provision for Grants Increase / (Decrease) in Grants Committed Increase / (Decrease) in Restricted Funds

825 106 (1,136) 17,025 0 23,500 (7)

18,675 744 (1,442) (550) 0 (38,500) (7)

60,486

(165,645)

5. Analysis of Expenses 2020 2019

Expense Item

$

Volunteer and employee related costs Meeting expenses 3,822

$

6,144

WAIRARAPA MOANA TRUST

33


WAIRARAPA MOANA TRUST

Notes to the Performance Report For the year ended 31 May 2020 6. Changes In Accumulated Funds Accumulated

This Year

Surpluses or (Deficits)

Reserves

Total

Trust Funds are represented as follows: Opening Balance Surplus / (Deficit) Transfer to Reserves

131,284 7,443 20,173 (7) 7

138,727 20,173 –

Closing Balance

151,450

158,900

7,450

Accumulated

Last Year

Surpluses or (Deficits)

Reserves

Total

Trust Funds are represented as follows: Opening Balance Surplus / (Deficit) Transfer to Reserves

275,857 7,436 (144,565) (7) 7

283,293 (144,565) –

Closing Balance

131,285

138,728

Nature and purpose of each reserve

2020

2019

Reserve 1 Ngā Hapū Karanga o Wairarapa Fund

7,450

7,443

Total

7,450

7,443

7,443

7. Related Party Transactions 2020 2019

$ $

Description of relationship Transactions with trustees Description of transaction Trustees were paid for attending meetings

34

ANNUAL REPORT 2020

2,657

4,170


WAIRARAPA MOANA TRUST

Notes to the Performance Report For the year ended 31 May 2020 8. Grants, Sponsorships & Scholarships Paid

Grants Wairarapa Moanatanga: – Golden Shears – Whakakaha Paepae – Waiata Whakangahau Marae Development Education Wānanga Expenses

2020 2019 $

$

4,360 2,400 5,960 25,581 0

4,000 5,791 51,278 20,473 12,984

Sponsorships Waikato River Trails Iwi Kai Initiative

38,301

94,526

1,000 8,000

0 0

Scholarships Future Leaders Scholarships

9,000

0

32,252

37,250

79,553

131,776

Total Grants, Sponsorships and Scholarships

Disclosures Board of Trustees MEETINGS ATTENDED

2020 2019

Deborah Davidson

6

8

Anaru Smiler

5

6

Tirau Te Tau

5

8

Rutu Namana

4

7

Raumahora Waata

2

8

WAIRARAPA MOANA TRUST

35


Wairarapa Moana Trust Independent Review Report For the year ended 31 May 2020 Accountants Report to the trustees of the Wairarapa Moana Trust We have reviewed the financial statements of the Wairarapa Moana Trust for the year ended 31 May 2020 in accordance with the Review Engagement Standards issued by Chartered Accountants Australia New Zealand. A review is limited primarily to enquiries of the entity’s personnel and analytical review procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believe that the accompanying financial statements do not give a true and fair view. Our review was completed on 30 July 2020.

AMY KERR and ASSOCIATES LIMITED 38 Bannister Street Chartered Accountants Masterton

36

ANNUAL REPORT 2020


To contact the Wairarapa Moana Incorporation web www.wairarapamoana.org.nz email info@wairarapamoana.org.nz Masterton Office

PO Box 2019, Kuripuni, Masterton 5842 Wairarapa Moana House, 4 Park Avenue, Masterton 5810 Telephone 06 370 2608 Taupo Office

PO Box 1347, Taupo 3351 Level 1, 14 Ruapehu Street, Taupo 3330 Telephone 07 213 2275 Fax 07 377 6156 Cover Photos:

Whānau on Farm


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