H U-W ANGA
AT I
I NU
HA
IN
CO
RPORATI
ON
Toi tu te whenua
ANNUAL REPORT 2019
Listen carefully The voice from Paretetaitonga Projecting and owing Across the prosperous and thriving lands Settling at Te Awa Tupua Confirming to us all Ātihau-Whanganui Incoporation For the land, for the people. With great sorrow we acknowledge the dead We cry, we lament you all Go to the great sky above Be with our ancestors and loved ones Sleep well and rest in peace Salutations to one and all Welcome To our gathering of ourselves To our Annual General Meeting To unite us as one Welcome.
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Whakarongo ake rā Ki te reo kōruarua i Paretetaitonga E pāorooro atu nei Ki te whenua tāhora, ki te whenua tōmatomato Tau atu rā ki Te Awa Tupua Me ō reira kōrero Ātihau-Whanganui te koporeihana He whenua, he tangata e Whakarehurehu ana ki ngā mate o te wā Ka tangi, ka hotu mō kautau Pikitia atu rā ki te pūoro wairua i te rangi Ki te iwi nui i te pō Moe mai rā, e oki e. E te iwi, ka nui te mihi Nei rā ko ngā rongo o te tau E rārangi mai nei Kia pai ai te wetewete i ngā kōrero o te tau Mā te nui Āti Tū, mā te rahi Āti Hau Ka puta, ka ora nā.
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CONTENTS TOITŪ TE MANA 6
10 11
Ātihau-Whanganui Incorporation Chairperson's Report Board Members
Business and Brand Strategy 2018
TOITŪ TE WHENUA 12
CEO Report
18
Telling the AWHI Story
17 20 20 19
Executive Team
Land and Buildings Valuation
Summary of Key Financial Information Performance Highlights
TOITŪ TE TANGATA 22
Te Āti Hau Trust Chairperson's Report
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Summary of Key Trust Financial Information
26 28 30
Te Āti Hau Trust Trustees
Scholarships not just about the money 2018/19 Trust Grant Recipients
ĀTIHAU-WHANGANUI INCORPORATION FINANCIAL STATEMENTS 44
Contents
46
Statement of Comprehensive Income
45
47 48 49 50 66
Shareholding and Committee of Management Disclosures Statement of Changes in Equity Statement of Financial Position Statement of Cash Flows
Notes to and forming part of the Financial Statements Auditors' Report
TE ĀTI HAU TRUST FINANCIAL STATEMENTS 70
Contents
72
Statement of Service Performance
71 73 74 75 76 80
Entity Information
Statement of Financial Performance Statement of Financial Position Statement of Cash Flows
Notes to and forming part of the Performance Report Auditors' Report
APPENDIX 82 83
Glossary of Terms Notes
COVER: Steve Tapa (Farm Manager, Tawanui and Mark Brown (Shepherd, Ohorea). Steve is our 3rd longest serving member of staff, and Mark is our longest serving member of staff.
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Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT
Mavis Mullins Chairperson
Ko te kupu, te kupu Ko te Atua, te Atua Ko Ranginui ki runga Ko Papatūānuku ki raro Ka mate ai te tangata Ka pō, ka ao, ka awatea Tīhei Mouri Ora.
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TOITŪ TE MANA ON BEHALF OF THE ĀTIHAU-WHANGANUI INCORPORATION BOARD, I AM PLEASED TO PRESENT THE ANNUAL REPORT FOR THE FINANCIAL YEAR 1 JULY 2018 TO 30 JUNE 2019.
As an organisation, this past year has been a year of cultural discovery. As we grow and evolve from a farmer to a global food producer the challenge has been to ensure our cultural integrity doesn’t get lost in the corporate haze. The Awhi Way has definitely become a benchmark for decision making at all levels. Some of the challenges we faced have not been easy to overcome, but our core purpose of Toitū te Mana, Toitū te Whenua, Toitū te Tangata, to help people and nature flourish together, continues to give direction to deliver to
our customers, our partners and our shareholders. Toitū te Whenua We are in the third year of an ambitious eight-year investment and development programme of our sheep and beef farms and the focus of improving the infrastructure continues. This strategy is increasingly balanced with cashflow management to ensure these investments are appropriate. We continually scan the new technology environment for innovative and more cost-effective solutions. Our relationships with the Te Hono
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Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT
movement and sector entities help us stay focused on the future of farming practices and challenges. Other strategic pathways have seen the streamlining of farming operations including the shift of management of our home dairy unit Hapuawhenua back in-house to enable better control and management of environmental, animal welfare and people issues. The decision to rationalise Operiki Station by merging it with Papahaua and Waipuna Stations has proved to be positive on both the economic and environmental fronts. We celebrated our first harvest of organic honey. We are on a steep learning curve as we extend our apiary offering in this direction, but the premium that organic honey can command in the marketplace makes it a strong business decision. The waterways that flow across our
whenua are the best indicators of health of the environment so the monitoring programme we began in February with Ngāti Rangi bring an independent lens to the work we do. We look forward to the first results report early next year.
and 69% agreeing that they feel valued at work. We do not wish to rest on percieved laurels however, and so the survey gave us some areas to focus on such as greater communication and connection across the organisation.
Political directions continue to challenge farming entities’ license to operate. We have been engaged in the conversations around the Zero Carbon Bill, the Freshwater Agenda and Climate Change to name a few. Our membership with FoMA provides open forum discussions and advocacy.
The Awhiwhenua training facility continues to develop with accommodation now completed at Tawanui, Ohorea and Waipuna Stations. These new buildings mean our second year cadets can live on-farm as they complete their training for the year. We will again host the Awhiwhenua graduation at our AGM.
Toitū te Tangata People are always of tantamount importance to the success of our business. We were pleased to receive positive and favourable feedback from the staff engagement survey conducted this year, with 75% of staff saying they would recommend Ātihau-Whanganui Incorporation as an employer to a friend
One appointment that has had a positive effect on the Ātihau-Whanganui Incorporation is that of Whetu Moataane, our Tikanga and Branding Manager. Whetu’s contribution over the last year has been felt across the organisation as he brings our unique Māori worldview to the forefront of our organisation. The Board committed two years ago to address and build connections to minimise the unclaimed dividends. This challenge is one that many incorporations and trusts face, and is growing year on year as successions occur. Whetu and his team have used a number of channels including social media. We have implemented a number of face-to-face opportunities for our shareholders to kōrero with Board members and the management team.
"...we continue to invest in a workforce that is fit for purpose and committed to the AWHI-way."
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TOITŪ TE MANA
$3.2m Earnings Before Interest & Tax
had honey in the shed, lambs in the paddock, and as a result less cash in the bank. The value remains as an asset on the books but has increased the debt. We are working hard this year to realign. Since the end of the financial year, we’ve increased the frequency of budget re-forecasts, with a focus on cash flows across multiple years, not just the one we are operating in. Our BNZ partners confirm they are comfortable with our debt levels, and just as importantly our debt management strategy. We are considering a principal repayment plan which would see principal repayment begin on investments as they reach maturity, starting with our share investments and Te Hou Farms over the next 12 months. We acknowledge the high levels of trust and support we share with our valued partners BNZ. Celebrations and events to mark our 50th anniversary are well developed, hear more at this AGM. Toitū te Mana The official launch of our Awhi Ruapehu Angus brand in February was an exciting step forward driven by our added value strategy. Knowing our Awhi beef is being served to discerning diners at some of Auckland’s top restaurants is gratifying. Another milestone was introducing Awhi Lamb into the US marketplace through our strategic partnership with Broadleaf Game. The Awhi Single Harvest Honey will also soon be available to American consumers. I would be remiss if i did not highlight some of the important learnings of this past year. There are two that I believe important to share with you.
Last year a business case was successfully presented to bring the financial operations in house. Although this has progressed well, a number of learnings around complexity and timing were learnt and at this point we sincerely acknowledge the strong relationship we have with Balance who continue to provide guidance and support to ensure this aspiration is achieved. The other matter is around the financial result this year. I refer in particular to the increased debt shown on page 48. In the past we have sold our Mānuka honey in the same year it was produced. A combination of new market demands and our value chain relationships meant that this was not the case this year. We also committed to holding onto some lambs so that we could supply Awhi single source lambs 12 months of the year. This meant we
On behalf of the Board, I would like to thank Andrew and the executive management team for the dedication they bring to their roles. Sincere thanks to all staff for the diligent mahi they do on a daily basis. To my fellow board members, it is a privilege to work as a cohesive team, bringing the dreams and aspirations of our tīpuna and whānau to life. And to you our shareholders, our whanaunga, thank you for your support and contribution as we continue to advance an organisation we can be very proud of. Ngā manaakitanga
Mavis Mullins Chairperson
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Ātihau-Whanganui Incorporation BOARD MEMBERS
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Mavis Mullins (Chair)
Che Wilson
Keria Ponga (Trust Chair)
Brendon Te Tiwha Puketapu
Whatarangi Murphy-Peehi
Sarah Bell (Associate Director)
Rāwiri Tinirau
Shar Amner
Laurissa Cooney (Independent Director, Audit and Risk Committee)
TOITŪ TE MANA
Ātihau-Whanganui Incorporation BUSINESS AND BRAND STRATEGY 2019
Why
Our Purpose.
Toitū te Mana, Toitū te Whenua, Toitū te Tangata
Our Purpose, Our Legacy, is to look after nature, so nature can look after us.
How
How we'll generate value.
Tikanga
Tikanga is our source of legacy and competitive advantage.
What
&
Products and Experiences
Foods Value Propositions Simply the purest foods, raised with wholehearted care.
Other Value Propositions To be developed based on offer and audience.
Our 5 Strategic Pou - our immediate focus areas
Tangata People
Growing the mana and wellbeing of our people, partners and customers.
Our Values Be completely natural
Whai Hua Productivity
Continuously improving through our collective wisdom and creativity.
Morimori Care
Nurturing and protecting all life, and appreciating that all life is connected.
Mana Value
Exploring and bringing higher value products and applications to new and existing markets.
Whakapapa Brand
Building a premium brand through sharing our Tikanga and rich history.
Informing our actions everywhere, every day.
Think creatively, act courageously
Treat people and nature as family
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Ātihau-Whanganui Incorporation CEO REPORT
Andrew Beijeman CEO
IT HAS BEEN ANOTHER BUSY YEAR FOR ĀTIHAU-WHANGANUI INCORPORATION, WITH PROGRESS MADE, AND CHALLENGES OVERCOME.
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TOITĹŞ TE WHENUA We have also encountered some
Farming
unexpected steep learning curves as
After a kind Spring season, we experienced a very dry Summer which meant we needed to sell some stock store and scanning results were negatively impacted. But, as every farmer knows, these are the ups and downs of farming, reliant as we are on the weather.
we explore new revenue streams and marketplaces for our products. Our focus on adding value by moving up the supply chain to develop a stronger connection with our customers is delivering the economic benefits we planned for along with some learning opportunities we didn’t! But we have met these challenges head on and added to our experience so as to continue building on the fundamentally strong foundations the organisation has put in place.
We did have more calves born this year — 3,584 which is 120 more than last year. A testament to the experience and skill of our farm managers. Our steers did well at market with an average price of $1,851, with those
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Ātihau-Whanganui Incorporation CEO REPORT
sent to the Angus Pure NZ programme attracting a 10% premium which translates to $160 more per head. This goes to show the benefit of a value-add strategy, and we are proud that our farms supply 80% of the beef distributed under the Angus Pure NZ brand to this business partnership. Ātihau-Whanganui Inc lamb numbers also increased on last year’s figure with 95,418 recorded, with an average price of $117 (FY 2017-18 $109) per head achieved at market. Our milk production figures were also up on last years’ so overall AWHI Farms has performed well. Apiary The apiary side of the business performed well with an increase in production of 91,761 kilograms overall —40, 302 kilogram coming from our own hives on Ātihau-Whanganui Inc whenua. This result reflects the expertise our beekeepers bring to their role and the good management practices they employ. One area in which we are developing our apiary business is by producing organic honey. There are considerable restrictions to the way organic hives are managed with a ban on any chemical treatments or supplementary feeding. This requires a more labour-intensive approach but the potential of this revenue stream is promising. We intend to have an Awhi Organic Mānuka Honey product available internationally within the next two years with branding development already in progress. Continuing to build partnerships with landowners to enable us to increase the number of productive hives is still a strategic element of the business and we are working to secure total coverage by bees cared for by the ĀtihauWhanganui Inc apiary team. Environment Our commitment to caring for the land is as strong as ever with a further
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10,000m of riparian fencing completed and 2,000 native species planted.
promote the environmental sustainability of the business.
We have installed 12,600m of fencing to protect native bush and erosion-prone areas from damage by stock.
People
The Board has approved a change in policy so no paddock with a slope of more than 20 degrees is to be used for cropping going forward. This is in line with best practice to reduce the amount of soil and sediment dislodged by feeding stock ending up in creeks, streams and rivers. Our environmental monitoring programme is now in place, with the first initial results due early next year. These will help us to understand fully what is happening in the waterways and enable us to develop further initiatives to
The Ātihau-Whanganui Inc family has grown to 68 permanent staff. This is double what it was five years ago, a further indication of the growth the organisation has experienced in this time. All new members of staff have been welcomed into the team and have settled into their roles well. We have experienced a number of staff successfully moving up the industry ladder by securing more senior internal roles. These team members had to follow the same recruitment procedures as all external candidates and performed extremely well, many of them uri.
TOITŪ TE WHENUA
$24m Total Revenue
Reinforcing and renewing connections with our shareholders is an ongoing focus for our administration team, who continue to discover people with unclaimed dividends.
received many positive responses and all shareholders are encouraged to click like so they can be kept up-to-date with Ātihau-Whanganui Inc news and activities.
Facebook has proved to be a useful tool in this endeavour, with a specific campaign carried out to target whānau currently living in Australia. The shareholder Facebook page has
We are planning two events to mark Puanga next year, plus our farm tour is set to become an annual occurrence. The hunting sub-committee has been busy reviewing policies and processes
"The demand for Awhi lamb is growing, particularly in the US market, with around 14,000 animals born and raised on Ātihau-Whanganui Inc whenua..."
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Ātihau-Whanganui Incorporation CEO REPORT
"...we have met these challenges head on and added to our experience so as to continue building on the fundamentally strong foundations the organisation has put in place."
in order to facilitate more access for hunting, predominantly fallow deer, and kai gathering activities. One successful hunt has already been held and several more are in the planning. Connecting with the whenua in this way is important for many of our shareholders and their whānau so the work the committee is doing holds much value. Added Value The demand for Awhi lamb is growing, particularly in the US market, with around 14,000 animals born and raised on Ātihau-Whanganui Inc whenua now being distributed through our strategic partners Broadleaf Game in America and NZ-based Wilson Hellaby. This relationship means we need to supply lamb every week of the year, which can present a real challenge some months. Good farm management
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is key to maintaining our agreements as we carry more stock across the season than in the past.
apiary business and improvements on
The Awhi Ruapehu Angus brand, launched in February, has also been well-received by consumers. This market accounts for 40% of our prime steers — around 700 animals each year. A further 1000 prime beef steers supply the Angus Pure NZ programme previously mentioned. The fact that our beef makes up such a large proportion of this respected brand is an indication of the quality of the meat we produce and another remarkable achievement.
$160m.
Financials Total revenue for the financial year 1 July 2018 to 30 June 2019 was $24m, an increase of $2.35m from last year,s figure. This result reflects the returns we have experienced through our
livestock market prices. Our total equity remains consistent at Holding more stock at year end has contributed to an increased debt figure of $39.6m (from $31m last year). This has come about in part due to our value-add strategy, which requires us to provide lambs for sale 12 months of the year, which means a greater number of lambs onfarm at the end of the year, which would otherwise have been sold. Debt was also increased because no honey had been sold at the end of the financial year, as well as ongoing investment interests. Our net surplus (before finance costs and non-operating valuations) remains steady at around $3m.
To our Board, thank you for your informed and perceptive governance that continues to guide the organisation into the future.
Next year will no doubt bring its challenges as we continue to strive towards our core purpose of Toitū te Mana, Toitū te Whenua, Toitū te Tangata while growing the mana of our people, our partners and our customers and building the Awhi brand through the sharing of our tikanga and rich history. As we travel further along the path of discovery, the future grows ever more
TOITŪ TE WHENUA
I wish to acknowledge and thank the Ātihau-Whanganui Inc management team for their on-going support and all staff for the dedication they bring each day that enables us to provide our customers with some of the best produce in the country.
exciting. I am looking forward to the year ahead of us. Ngā mihi
Andrew Beijeman Chief Executive Officer
Ātihau-Whanganui Incorporation EXECUTIVE TEAM
Andrew Beijeman (Chief Executive Officer)
Brenton Barker (Finance Manager)
Natasha Poloai (People and Safety Manager)
Whetu Moataane (Tikanga and Branding Manager)
Siwan Shaw (Business Manager Farming)
Dan Adams (Business Manager Apiary)
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TELLING THE AWHI STORY Producing the best quality beef, bred and raised for taste and tenderness, is no longer enough to satisfy discerning customers.
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Consumers want to know how their meat was raised, how it was cared for — they want to know the story behind their steak.
he explains. “The fact that a serving
The business has a dedicated butchery
of beautiful prime Awhi beef can be
team which prides itself on being able
traced back to the paddock it was born
to deliver chefs with specialist cuts
in holds a lot of weight in places that
produced to their exact specifications,
And the story that the ĀtihauWhanganui Incorporation has to tell is one that resonates. It’s a tale people can connect with and know it is being told with integrity and pride.
matter.
as well as top quality regular joints and
It’s a story Nick Archibald, owner of Foodchain, says makes all the difference in a competitive marketplace.
Foodchain is a high-class food partnership with Ātihau-Whanganui Inc
The strategic partnership between
“It is important for resturants, their chefs and their customers, to know where the food they are eating has come from,”
to provide Auckland’s top restaurants
Ātihau-Whanganui Inc and the
with beef produced under the Awhi
Auckland-based Foodchain began in
Ruapehu Angus brand.
2017 after Nick visited the Te Mania
“The care and attention that an animal
steaks.
received during its lifetime, and where
Foodchain also supplies seafood,
it lived, becomes part of the eating
poultry, dry goods, dairy products,
experience.”
cheeses and much more. In fact, there
distribution company which works in
isn’t much on any restaurant menu that the business can’t supply!
TOITŪ TE WHENUA Angus bull stud in North Canterbury. He mentioned that he was looking for producers to supply chefs who demanded the highest quality meats with which to create their signature dishes. “I know Te Mania well as their animals produce the most amazing beef, and they suggested I get in contact with Andrew (Beijeman, CEO of ĀtihauWhanganui Inc) and his team,” he says. “The stud knew what great beef animals Ātihau-Whanganui Inc were producing because the bloodlines come from their bulls.” “When I talked to the Awhi team and listened to what they had to say, I knew I had found what my customers were looking for.”
The relationship began on a solid foundation of common strategic values and continues to go from strength to strength.
Ātihau-Whanganui Inc supply around
“Foodchain has the same aspirations as we do — to provide customers with beef that has been bred for taste and texture and raised with care and skill,“ says Andrew. “They understand our value-add approach and have been instrumental in enabling us to achieve our goal of supplying customers who appreciate quality and are happy to pay the premium required to get it.”
increase numbers further.
“The restaurants and chefs Foodchain talk to on a daily basis have really connected with our story and our paddock-to-plate philosophy. Our Māori kaupapa, too, is something that brings a point of difference to our brand.”
40 pedigree Angus steers every three weeks to Foodchain to meet current requirements and there is capacity to
The high-profile launch of the Awhi Ruapehu Angus brand in Auckland last February has seen it being served in more than 30 restaurants, including SkyCity’s Orbit 360 eatery frequented by the casino’s high-roller clientelle. “The Awhi brand is one of the first to bring an authentic Māori story to the marketplace and its name really means something to people,” says Nick. “When they see ‘Awhi Ruapehu Angus’ on the menu, diners know they are getting the best.”
“FOODCHAIN HAS THE SAME ASPIRATIONS AS WE DO - TO PROVIDE CUSTOMERS WITH BEEF THAT HAS BEEN BRED FOR TASTE AND TEXTURE AND RAISED WITH CARE AND SKILL.” Andrew Beijeman
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Land and buildings valuation Why we revalued our land and buildings International accounting standards require us to do this every three years, and bring the increase or decrease in value into the financial accounts. Ideally, we would get a ‘Fair Value,’ which means we would pay $35,000 to get an independent valuation carried out of all the farms at once, and then over $6,000 each year after that.
line with our values of Toitū te Whenua.
How we carried out this revaluation We have used the ‘Quotable Value’, which is the latest government value that council completes each year for the purpose of calculating rates. Because the auditor will not consider this to be ‘fair value,’ each year our accounts receive a ‘qualified’ audit
to improve the whenua.
We believe this is the most fiscally responsible approach We have a responsibility to you to manage our assets responsibly and in
While it’s nice to know the land is increasing in value, that doesn’t change our connection to it, and obviously it’s not for sale. We believe it is better kaitiakitanga over our assets if we don’t spend $35,000 on this process, and instead we can use that money towards things that benefit you, like trust grants, and further work That is why we have decided not to seek an independent valuation: •
the land and buildings are not for sale
•
these assets are held in perpetuity for the sole benefit of our current and future shareholders
•
we think there are better places that we could use the money than on a valuation.
Ātihau-Whanganui Incorporation SUMMARY OF KEY FINANCIAL INFORMATION For the Year Ended 30 June 2019
AT A GLANCE
2019 $'000
2018 $'000
Total Revenue
23,927
21,569
Livestock
16,892
15,682
1,558
1,713
999
1,057
Apiary
2,540
2,264
Other Income
1,938
853
20,745
18,508
3,182
3,061
Milk Wool
Total Expenses Net surplus before finance costs and non-operating revaluations
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TOITŪ TE WHENUA
Ātihau-Whanganui Incorporation PERFORMANCE HIGHLIGHTS For the Year Ended 30 June 2019
Livestock
Increase in calves born 3,584 which is 120 more than last year. Steers average price of $1,851
Livestock Lamb 95,418 recorded (average price)
$117 PER LAMB $109 PER LAMB (2018)
Staff engagement survey
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Permanent staff
75% recommend AWHI as an
of staff would employer
valued at 69% feel work
14,000 lambs born and raised on AWHI whenua, now distributed through strategic partners in USA.
Environmental Responsibility 10,000m riparian fencing 2,000 native species planted 12,600m of fencing to protect native bush and erosion-prone areas from damage by stock
HONEY
91,761
Angus Pure NZ
80
%
Kilograms overall 40,302 kilogram coming from our own hives on Ātihau-Whanganui Inc whenua.
of beef distributed under this brand is AWHI beef
Total Revenue
Total Equity
Net Surplus*
$24m
$160m
$21.6m (2018)
$159.6m (2018)
$3.0m $3.1m (2018) *before finance costs and non-operating revaluations
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Te Āti Hau Trust CHAIRPERSON'S REPORT
Keria Ponga Trust Chairperson
Tēnei te tangi me te matapōrehu ki ngā aituā o te wā. Haere atu rā kautau ki te kāinga wairua i te rangi, ki ngā mātua tūpuna. Haere, haere, e oki atu rā. Huri te pō, nau mai te ao. Tēnā tātau i runga i ngā tini āhuatanga o te wā. E rere atu ana te whakamānawa i Paretetaitonga, tatū atu ki ngā whenua mōrehu, ā, tae atu rā ki Te Awa Tupua. E te iwi whānui, ka nui te aroha ki tātau i tō tātau hui-ā-tau. Nōku te honore kia tuku tēnei pūrongo-ā-tau. Kia tau te rangimārie ki runga tātau.
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TOITŪ TE TANGATA ON BEHALF OF TE ĀTI HAU TRUST I AM PLEASED TO PRESENT MY LAST CHAIR REPORT FOR THE FINANCIAL YEAR 1 JULY, 2018 TO 30 JUNE, 2019.
It has been a year of transistion and change for the Trust, which has presented us with some challenges as well as benefits that we expect will be seen in the months ahead. Our long-serving Trust Secretary Paul Maguire has passed on the reins to Charmaine Teki as part of the Trust’s strategic intent to bring everything inhouse. This will bring significant savings to the Trust which can be reallocated to other priorities that will directly benefit our shareholders and their whānau. We would like to acknowledge Paul’s role in the Trust’s
work over the past decade and we wish him well in the future. There have also been changes in the Whanganui office as Jonelle HirotiKinane joins the team and assists Charmaine with the administrative duties of the Trust. She brings a fresh approach to the mahi as well as being the friendly face at the front desk and a helpful voice over the phone. Our sincere thanks go to Charmaine and Jonelle for all their hard work, and for providing our shareholders and their whānau with the help and support that they need.
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Te Āti Hau Trust CHAIRPERSON'S REPORT
A change in the makeup of Te Āti Hau Trust Board has also taken place. After serving nine years on the Trust, constitutional guidelines now bring my tenure as trustee to an end. I pass on the role of Chair into the capable hands of Shar Amner who is in his second term on the Trust. A respected colleague and valued contributor, I have every confidence that he will continue the good work of the Trust to serve our people well. I also welcome Rāwiri Tinirau to Te Āti
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Hau Trust as he takes over my postion as the Ātihau-Whanganui Incorporation Board trustee representative. Rāwiri will bring his ‘A’ game to the position as he does with all roles that he is involved in. Exciting times ahead! A key focus area has been a complete overhaul of the Trust’s grant application forms and Trust website with the aim of making it easier for shareholders and beneficiaries to apply for grants both online, and paper-based. I am also pleased that the Alumni Programme
is closer to the starting line and will reconnect us with our grant recipients throughout the years and the many skills, talents and expertise they may bring to the table. I look forward to seeing this project in action. Educational Grants The majority of our grants go toward supporting our tertiary grant recipients who continue to amaze us with their programmes of study. We are very proud of their achievements and
TOITŪ TE TANGATA
$317,048 Total Distributed "...each year we see an increasingly wide variety of applications to support our people, who are representing us on the world stage, and at home."
are inspired by the pursuits of our whanaunga striving to reach their goals and aspirations. This year the Trust approved 290 education grant applications to distribute $186,151, an increase in the number of grant recipients from last year by 52. The number of full-time tertiary undergraduate grants approved increased by 27, bringing the total to 154 to distribute $90,551. We also awarded 13 more medical grants this year for a total of 41 to distribute $27,700.
is relatively simple so with fewer applications this year, I encourage all parents with Year 10 and Year 11 students to apply.
Sports, Arts and Travel category and to
The Trust approved grants to 57 Year 10 and Year 11 students to distribute $14,250.
cultural activities. A brief summary of
General Grants This year a total of $130,898 was distributed for general grants across 47 recipients. Our whānau continue to represent us on a national and global stage in the
this end we distributed $14,822 to 23 applicants. A total of $31,000 was given to support some grant recipients are: $10,000 was approved to assist with the Ratana 100th year celebrations, along with the annual contributions of $1,000 to support the Whanganuitanga celebrations at Pakaitore, and Hui Aranga rōpū travelling to the Hui Aranga. We received fewer marae applications this year with one approval
We saw an increase in the number of postgraduate students by 26, and approved 31 applications to distibute $41,050. We awarded one high achiever student to distribute $1,000, one agriculture student to distribute $3,000, four students studying overseas (double last year) to distribute $7,600, and $1,000 distributed to the Balance/ Deloitte scholarship recipient. It is encouraging to see that the knowledge of the support available for our wāanau studying at tertiary level is growing. This category also covers Year 10 and Year 11 students to help parents meet the costs associated with supporting their tamariki at college. The process
25
of $15,000 given to Koroniti Marae. Currently there are no strict criteria attached to the marae application grant as we believe that the marae trustees know best what their priorities are. In order to share what valuable pūtea we have available, there is a preference to support new applicants that are located within the rohe of the Ātihau-Whanganui Incorporation whenua. While there is currently no specific community grant category, the Trust approved $8,000 for five events held throughout the rohe that have been grouped under the title ‘community’. This also highlights another area for consideration by the Trust. It is very pleasing to see the number of kaumātua applications received have almost doubled from last year. The Trust approved $42,276 in support of 47 kaumātua to assist with their health and well-being. All our grant categories are important to us, so the awhi and manaaki we are able to give alongside the Incorporation to our shareholders and their whānau during their time of grief holds a special place in our hearts. My sincere thanks to the office team and Don Robinson for their speedy response and assistance. Our support this year for tangihanga tents remained the same at $66,000. The trustees are always appreciative of the acknowledgements they receive about the difference a grant has made,
and we thank the shareholders for their endorsement of our grants, and allowing us the privilege to make these available. A breakdown of all grant recipients can be read on page 31. In conclusion We are always looking for opportunities to leverage the support we can give to our shareholders, and the Trust will continue to seek out and build partnerships to further this aim. Our most recent partnership is with Victoria University of Wellington who have agreed to match dollar for dollar all funding we give to grant recipients studying at the institution, a huge investment in the future of our whānau. There are several Iwi Trusts and incorporations that have signed up to this agreement, so if you or your whānau have also received a grant from any of these Iwi organisations, and are studying at Victoria University of Wellington, you will automatically qualify for the dollar value of their contribution as well. That’s a pretty good deal. You can read more about the relationship between the Trust and the university on page 28.
to flourish and set new pathways for the future. It has been my privilege to have been part of the initial set-up of Te Āti Hau Trust and to have remained on the Trust for the duration of the term. My sincere thanks go out to my fellow Trust and Incorporation board members, both past and present, for the honour of working alongside you all, and my heartfelt gratitude goes to all our shareholders for enabling me to support, contribute, and share in your journeys. I would like to thank my fellow Board members Shar Amner, Whatarangi Murphy-Peehi, Aaron Rice Edwards and Jessica Smith for their valuable contribution this year and also to the Ātihau-Whanganui Incorporation for its ongoing support of the Trust. Ngā manaakitanga ki kautau katoa.
Keria Ponga Trust Chairperson
As we head into the next decade for the Trust, I am excited by the opportunities that lay ahead for the organisation and our shareholders. Backed by a strong team of trustees, the Trust will continue
Te Āti Hau Trust TRUSTEES
Keria Ponga (Trust Chair)
26
Whatarangi Murphy-Peehi
Shar Amner
Jessica Smith (Independent Trustee)
Aaron Rice-Edwards (Independent Trustee)
TOITŪ TE TANGATA
Te Āti Hau Trust SUMMARY OF KEY TRUST FINANCIAL INFORMATION For the Year Ended 30 June 2019
FT Tertiary Undergraduate
General Grants
Education Grants
$90,551
$130,898
$186,151
47 TOTAL
154 TOTAL
290 TOTAL
Sports, Arts and Travel
Postgraduate
23 applicants
$14,822
31 approved Increase of 26
distributed
Cultural
$41,050
$31,000
distributed
distributed
Kaumātua Considerable increase on last year's distribution
$42,276 $22,820 (2018)
Kaumātua
assistance supported Dental work Hearing Aids Prescription Glasses Warm, dry, safe homes
27
Scholarships not just about the money 28
Building partnerships in order to leverage the potential to grant scholarships is a key strategic aim for the Te Āti Hau Trust.
TOITŪ TE TANGATA
"Enabling students to gain knowledge of the workplace and valuable experience in their chosen field can be instrumental in aiding them to find a job after completing their studies." Paul Meredith
"Sometimes we have to really work hard to encourage our students to apply for the support and opportunities available to them through iwi trusts and so on because they are not that connected," he says. "Once we have overcome that hurdle, the number of young people who reconnect with their iwi as part of their identity journey is wonderful to see." As well as a substantial scholarship pool to distribute, the University offers career development opportunities through summer internships with government agencies, industry organisations and businesses.
"However, we are restricted by the number of grants we can approve, and distribute, due to the amount of funding we have. By working with other organisations, we can find ways of making each dollar go further for our recipients." One such partnership formed this year is with Victoria University of Wellington, who have agreed to match dollar for dollar every grant approved by the Trust to students at the institution. "We are very excited to have made this agreement with Victoria University of Wellington because it means our support can help even more students," says Keria.
"Financial concerns are often a barrier for our whānau who wish to complete tertiary education on their way to a higher goal or achievement," says the outgoing Te Āti Hau Trust Chair Keria Ponga. "Our aim at the Trust is to support them in their aspirations through a scholarship grant for tuition fees.”
The benefits have been felt immediately, with 45 students already receiving double their original grant award — a total shared investment of $63,900. Paul Meredith, Pou Hautū of the Taihonoa programme at the University, explains that working in partnership with Māori organisations and iwi to facilitate relationships with young students doesn't just bring a financial benefit to the table.
"Enabling students to gain knowledge of the workplace and valuable experience in their chosen field can be instrumental in aiding them to find a job after completing their studies," says Paul. "We can help them get that foot in the door." This type of collaborative partnership between Victorian University of Wellington and Māori signals a new phase in the relationship. "We are wanting to work with iwi and other Māori trusts in a way that responds to their priorities," explains Paul. "We ask, what are your strategic aims? What do you want to do? Do we have any skillsets here that could help you? This has led to a relationship that holds a mutual benefit and delivers tangible results. We are keen to build on this platform and work with iwi further." "This strategic partnership not only enables Te Āti Hau Trust to support more of our people to enter the academic world, but also potentially holds opportunities that can benefit the incorporation and our shareholders as a whole," says Keria. "The future is an exciting one for us all."
29
Te Āti Hau Trust EDUCATION GRANT RECIPIENTS
" I don’t know for sure where I will end up, but I want to be able to reciprocate all the support I have been given by Te Āti Hau Trust, Balance and Deloitte in some way. I want to be able to show others what they have shown me; that anything is possible." Aaron McGregor Balance/Deloitte Grant Recipient
" Education opens so many doors, not just for individuals but for the whole community, so I really want to thank the Trust for the support they have given me." Jacob Robinson Agriculture Scholarship Recipient
" I have received top grades and absorbed more understanding than if I was stressing out on making ends meet. Not only that, but having iwi support makes me more adamant to go home and make a difference. I feel cared for and that what I’m doing matters to someone more than myself." Ngā Remu Huia Tahupārae High Performance Scholarship Recipient
" The money from the Trust not only helped with basic needs such as food and accommodation, it also opened the door to allow me to engage with my iwi and understand more about Te Āti Hau Trust." Elijah Pue Past Scholarship Recipient
" I felt assured my iwi were supporting my mahi, so throughout my whole journey I felt like I wasn’t alone." Hinurewa Poutu Past Scholarship Recipient
30
Te Āti Hau Trust EDUCATION GRANTS LIST
BALANCE/DELOITTE GRANT Recipient
Aaron McGregor
Scholarship
Tertiary Accounting Scholarship
$
1,000.00 TOTAL 1,000.00
POST GRADUATE Recipient
Qualification
PHD Dr of Philosophy - Part-Time
600.00
Jolene Yandall
Post Grad Diploma in Primary Health Care
650.00
Kayla Gray
Massey University
Kelly Harper-Waho
Nursing 770 Clinical Practice Dev.
1,100.00
Tara Ngatai-Broughton
Post Graduate Dip of Nursing Science
1,100.00
Joshua Hurn
Graduate Diploma in Secondary School Teaching
1,200.00
Justin McRobbie Brooks
Doctorate of Philosophy & PHD Physics
1,200.00
Aylla Buchanan
Post Graduate Dip in Education (ECE)
1,300.00
Celine Selwyn
Post Grad Dip in Sport & Exercise Science
1,300.00
Kylie Woon
Post Graduate Diploma in Counselling & Guidance
1,300.00
Samuel Pautahi Kenneth Wright
Graduate Diploma in Teaching (Secondary)
1,300.00
Symmone Tomairangi Yates
Entry to Professional Nursing Practice
1,300.00
Barbara Jean Murdoch
Master of Business & Administration
1,400.00
Chelsea Walsh (2018)
Victoria University
1,400.00
Chelsea Walsh (2019)
Victoria University
1,400.00
Elizabeth Sophie Ngawai Hooker
Master of Educational Leadership
1,400.00
Karanga J Morgan
Master in Applied Indigenous Knowledge
1,400.00
Shona Kapaea-Maslin
Post Graduate
1,400.00
Toni-Anne Wallace
Massey University
1,400.00
Bailey Williams
Postgraduate Diploma in Science (Psychology)
1,500.00
Coralai Toria Green-Repia
Te Wananga o Raukawa
1,500.00
Deanna Haami
Bachelor of Arts (Honours) (Psychology)
1,500.00
Joseph James Taihana Tyro
Masters in Māori & Indigenous Leadership
1,500.00
Maihi Hauiti Archibald Potaka
Masters of Māori Visual Arts
1,500.00
Miriama Cribb
Masters of Business Studies
1,500.00
Nancy Bassett (nee Katene Hooker)
Masters of Arts (2019) PhD (2020,2021)
1,500.00
Rangitaua Hunia
Post Graduate
1,500.00
Soraya Peke-Mason
Master of Business Administration
1,500.00
Tina Nelly Wong
Masters in Nursing
1,500.00
Toni-Anne Wallace
Thesis to complete Masterate in Psychology
1,500.00
Virginia Tui Davis
Post Grad Diploma in Nursing
Te Herekiekie Herewini
$
900.00
1,500.00 TOTAL 41,050.00
AGRICULTURE Recipient
Jacob Lawrence Robinson
Qualification
Phd, Earth Science
$
3,000.00 TOTAL 3,000.00
31
Te Āti Hau Trust EDUCATION GRANTS LIST OVERSEAS Recipient
Qualification
Associates Arts Degree - Arizona Western College, USA
1,800.00
Callum Langford
Batchelor in Civil Engineering - West Virginia University
1,900.00
Paige Hourigan
Business Administration - Georgia Institute of Technology
1,900.00
Pafe Mamalu Momoisea
Sport & Exercise - Coker College, South Carolina, USA
Leila Bailey Blackburn
$
2,000.00 TOTAL 7,600.00
MEDICAL Recipient
Qualification
Bachelor of Nursing
300.00
Alexandra Kumeroa
BA Nursing
300.00
Fiona Kataraina Nicoll
Bachelor of Medicine & Surgery (MB ChB)
400.00
Kerena Butler
Bachelor of Nursing Level 7
400.00
Roimata Bailey Blackburn
BA Applied Science-Medical Imaging Technology (Radiology)
400.00
Gipsy Alysha Foster-Matthews
Bachelor of Nursing Level 7
500.00
Jessica Brooke Hamilton
Bachelor of Nursing
500.00
Kama Whatu
Bachelor of Nursing
500.00
Marcia Apatu
BA Nursing
500.00
Ngawai Jackson
Bachelor of Nursing Level 7
500.00
Rachel Pirere
BA Nursing
500.00
Awhina Dixon
Bachelor of Nursing Level 7
600.00
Ebony McMaster
Bachelor of Nursing
600.00
Frances Leiana Watson
Bachelor Of Nursing Level 7
600.00
Hanna Mei Wheeler
Bachelor of Nursing
600.00
Jocelyn Moana Arahanga
Bachelor of Nursing
600.00
Lanice Ann Ranginui
Diploma in Enrolled Nursing
600.00
Sandy Mitchell
Bachelor of Nursing Level 7
600.00
Terehia Kendrick
Bachelor of Nursing
600.00
Waimarama Matena
Bachelor of Medicine & Surgery
600.00
Wavell Maddams
BA Nursing
600.00
Anahera McDonnell
Bachelor of Nursing
700.00
Anahera Millar-Potaka
Bachelor of Health Science (Rehabilitation)
700.00
Benjamin Tamihana Ratana
Bachelor of Medicine & Bachelor of Surgery
700.00
Caitlin Huria
Cert Health Sciences
700.00
Fiona Te Haara
BA Nursing
700.00
Frances Leiana Watson
Bachelor of Nursing Level 7
700.00
George Langford Miles
Bachelor of Health Science (Occupational Therapy)
700.00
Hinemoana Hall
Bachelor Nursing
700.00
Jessica Williams
Bachelor Nursing
700.00
Krystal Tinirau
Bachelor of Nursing Level 7
700.00
Louise Jansen
Bachelor of Physiotherapy
700.00
Natasha Fowlie
Bachelor Nursing
700.00
Te Reo Moana Whakaruru
UCOL Whanganui
700.00
Tunisha-Faith Akuhata
Bachelor of Health Sciences MÄ ori (Nursing)
700.00
Wavell Madams
Bachelor of Nursing
Alayna Brooks
$
700.00 CONTINUED
32
Te Āti Hau Trust EDUCATION GRANTS LIST MEDICAL Recipient
Qualification
Layne Neil Kay
Genetics major with Plant Botany minor
1,300.00
Sarah Jean Cornes
Bachelor of Medicine & Surgery
1,300.00
Freeman Apou
Bachelor of Medicine & Surgery
1,400.00
Antonio Hoeta
4th Year Diploma Science
Malachi Ropata
Bachelor of Medicine & Bachelor of Surgery (7th & final year)
$
900.00
1,500.00 TOTAL 27,700.00
HIGH PERFORMANCE Recipient
Ngā Remu Huia Tahupārae
Qualification
University of Auckland
$
1,000.00 TOTAL 1,000.00
SECONDARY 10/11 Recipient
School
City College
250.00
Ahurei Millar-Potaka
Manukura School
250.00
Akaylah Ranginui
Whanganui High School
250.00
Amber Neilson
St Joseph's Māori Girls College
250.00
Andrew Wharehinga
Tauranga Boys College
250.00
Angelle Hartley
Te Puke High School
250.00
Aria Rice-Edwards
Whanganui Collegiate School
250.00
Caleb Fortuin- Tiriaha
Aotea College
250.00
Chase Gaitano Benjamin Leach
Tauhara College
250.00
Cody Blair Lockett
Whanganui High School
250.00
Collis McNaughton
Onslow College
250.00
Connor J'son Pauro
Whanganui City College
250.00
Cruz Peter Pauro
Whanganui City College
250.00
Cullen Pita Heremia Hall
Cullinane College
250.00
Dryden Mihaka
Western Heights High School
250.00
Ethan Wiremu Campbell-Smith
Rongotai College
250.00
Fabian Hamilton
James Cook High School
250.00
Frances Tuirirangi
Te Kura O Kokohuia
250.00
Haize Ria Te Ponui Mihaka-Ushaw
Opotiki College
250.00
Ahmir Scurr
$
Harmony Te Rongopai Ngatoa-Wallace Cullinane College
250.00
Heavenly Mihaka
Western Heights High School
250.00
Hinekura Mason
Te Kura o Kokohuia
250.00
JB Martin
Te Kura O Kokohuia
250.00
Johnnie Junior Thomas Tuka Marsh
Cullinane College
250.00
Kaya-Mae Awhitu
Hamilton Girls' High School
250.00
Lafo Takiari Ah Ching
Palmerston North Boys High School
250.00
Legacy Wallace-Latoa
Rotorua Boys' High School
250.00
Logan Katera Blackburn
Wanganui Collegiate School
250.00
Lucas Wharehinga
Tauranga Boys College
250.00
Maia Bidois
Western Heights High School
250.00
Matthew Ruha Oberdries
Mt Albert Grammar School
250.00 CONTINUED
33
Te Āti Hau Trust EDUCATION GRANTS LIST
SECONDARY 10/11 Recipient
School
Whanganui High School
250.00
Mereana Stevie Ray Manihera
Hawera High School
250.00
Mitchell Ian Lockett
Whanganui High School
250.00
Naaman Andrews
Cullinane College
250.00
Ngarimu Matthews
Whanganui High School
250.00
Ngawaikowhai Patuwairua
Te Kura o Kokohuia
250.00
Quiama Te Miha
Te Kura o Kokohuia
250.00
Rachel Rowe
Rangitikei College
250.00
Raukaahu Ethan James Gray-Sharp
Palmerston North Boys High School
250.00
Raycena Makuini Raina Baron
Cullinane College
250.00
Melody Townsend
$
Regan Jade Te Kaho Piire Tyson-Nepia Whanganui High School
250.00
Scarlett Ngawara Blackburn
Wanganui Collegiate School
250.00
Seth Ngatai
Fielding High School
250.00
Te Awanuiarua Patea
Te Kura o Kokohuia
250.00
Te Ikatere Harrison
Te Kura o Kokohuia
250.00
Te Mana Poutokomanawa Tamahaki
Tai Wananga
250.00
Te Pere o te Rā nui Stark - Simon
Te Kura o Kokohuia
250.00
Te Warena Joseph
Te Kura o Kokohuia
250.00
Teesha Te Ua-Wright
Cullinane College
250.00
Tiaana Rolls
St Joseph's Māori Girls college
250.00
Tysinn Tamehana Raymond Lee Bishop Queen Elizabeth College
250.00
Walter Repia
Hato Pāora College
250.00
Walter Repia
Hato Pāora College
250.00
William John Pahl
Hutt Valley High School
250.00
William Wynyard-Harrison
Hato Pāora College
250.00
Xyhaan Gree-Repia
Hato Pāora College
250.00 TOTAL 14,250.00
UNDERGRADUATE Recipient
Qualification
Bachelor of Business (major in Finance)
200.00
Lynda Holster
Kawai Raupapa (Māori & Indigenous Art) & Bachelor of Social Work
200.00
Sharon Marshall
Te Ara Reo Māori
200.00
Madison Durston
Bachelor of Arts: Ethnicity & Identity, Environment Ethics
250.00
Joella Tahi
Finance 115114
300.00
Lynda Holster
Bachelor of Social Work
300.00
Natalia Green Repia
BA Māori Natural Resource Management & Marine Biology
300.00
Natalie Healey
Bachelor of Law
300.00
Te Rua Wallace
Bachelor of Social Sciences - Major Environmental Planning and Māori & Indigenous Studies
300.00
Arama Tuka
NZ Certificate in Business (Small Business)
350.00
Deana Wilson
Bachelor of Science - Geology major (Part-Time)
350.00
Decadia Pakinga
NZ Law Society Legal Executive Dipl Level 6
350.00
Huia Wiari
Bachelor Business Studies major Accounting - minor Agriculture in Business
350.00
Kaylin Huwyler- Hunia
$
CONTINUED
34
Te Āti Hau Trust EDUCATION GRANTS LIST
UNDERGRADUATE Recipient
Qualification
Intro to Chemistry & Mathematics Nov18-Feb19
350.00
Netta McNaughton
Māori Studies
350.00
Tina Tahi
Level 3 Apiculture
350.00
Dayne Gene Perkins-Gordon
Bachelor of Computing and Mathematical Science
400.00
Jessica Brooke Hamilton
Bachelor of Nursing
400.00
Sasha Te Ahuru-Millar
Bachelor of Arts (Public Policy)
400.00
Tawhiao McMaster
BA/LLB
400.00
Valencia Poutini
Poutuarongo Te Rangakura Akonga
400.00
Courtnay Durston
Bachelor of Social Sciences
500.00
Daniel Ephraim Tauru
Te Kunenga o Te Ao
500.00
Grace Parkes
Bachelor of Art majoring Politics & Māori Studies
500.00
Hannah Mei Wheeler
BA Nursing
500.00
Haukapuanui Vercoe
Bachelor of Engineering (Honours)
500.00
Hope Shontae Tioro
Psychology
500.00
Julia Wareham
Bachelor of Law & Sciences
500.00
Kayla Wareham
Bachelor of Business major Marketing - minor Management
500.00
Kristie Rihia
Bachelor of Teaching
500.00
Layne Neil Kay
BSc majoring in Genetics & Plant Biotechnology minor
500.00
Luke Enoka
Digital Design - Web & Graphic
500.00
Natalia Green
BA Māori Natural Resource Management & Marine Biology
500.00
Pearl Dickinson (Anne)
Pharmacy Technician Level 5
500.00
Rachael O'Halloran
Bachelor of Applied Management
500.00
Raukura Waihoea Naani Jane Whakaipo Waitai
BA Māori Visual Arts
500.00
Rayden Huwyler- Hunia
Bachelor of Science
500.00
Rio Bell
Victoria University
500.00
Sandy Mitchell
Bachelor of Nursing
500.00
Sonny James Hurinui Nepia
Business- Finance, Entrepreneurial Innovation
500.00
Taine Anthony Julian
Bachelor of Commerce
500.00
Tariana Turia
Diploma in Beauty Services
500.00
Te Arepa Teutupoto Teki
Eastern Institute of Technology
500.00
Te Awhina Plumridge
BA Arts & BA Laws
500.00
Vasilios Kostidis
Bachelor of Performing Arts
500.00
Waimihia J Maniapoto-Love
Bachelor of Art/ Māori Development/ Politics
500.00
Ariana Joseph
Te Aho Tatairangi: Bachelor Of Teaching Māori Medium
600.00
Ashleigh Tahiwi
Bachelor of Science majoring in Physiology
600.00
Ashley Te Weri
Bachelor of Veterinary Nursing
600.00
Billie Mills
Diploma in Business
600.00
Cameron Hurley
Toiora Whānau
600.00
Courtney Te Ahuru-Millar
Bachelor of Arts (Criminology & Sociology)
600.00
Danielle Ella Rae Rihia
Bachelor of Education
600.00
Dayna Stevenson
Bachelor of Science - Anatomy major
600.00
Gemma Fore
Bachelor of Social Work
600.00
George Langford Miles
Sport and Recreation
600.00
Mitchell Merriman
$
CONTINUED
35
Te Āti Hau Trust EDUCATION GRANTS LIST
UNDERGRADUATE Recipient
Qualification
BA in Media Studies & Political Science
600.00
Israel Hepi
Bachelor Of Teaching - Primary
600.00
Jacinda Te Amo
Te Ronakitanga Ki Te Reo Kairangi Level 5
600.00
Jasmaine Ruaka Martin
Bachelor of Bicultural Social Work
600.00
Joanne May Piripi
Maunga Kura Toi Raranga Level 7 Degree
600.00
Joshua James Holster
Electrical Engineering Level 3
600.00
Kahumoerangi Te Kani
Bachelor of Science major Maths & Economics
600.00
King Anthony Love
Te Haputanga o te Ao Tikanga, Diploma Level 5
600.00
Larissa Ellen Tucker
Bachelor of Laws
600.00
Leearn-Christie Iles
Te Wananga o Otaki
600.00
Maramapai Simon
NZ Certificate in Adult Literacy & Numeracy Ed L5
600.00
Naumai Kairimu
Te Rangakura
600.00
Nicola Walsh
Bachelor of Law & Bachelor of Arts
600.00
Poutamakiterangi Hamahona-Taiaroa
Bachelor of Sport & Exercise major in Physical Education
600.00
Sam Wright
Bachelor of Applied Science
600.00
Sidney Taku
Bachelor of Arts
600.00
Sofia May Tucker
University of Canterbury
600.00
Sonny Vercoe
Bachelor of Civil Engineering & Environmental Engineering (Hons)
600.00
Talia Poutini
Poutuarongo Kawa Oranga
600.00
Tamahina Sheridon
Bachelor of Arts
600.00
Tameka Solomon
Bachelor of Teaching (ECE)
600.00
Te Aotahi Rice Edwards
Bachelor Degree of Design
600.00
Te Mana-o-Tawhaki Huwyler
Bachelor of Design Innovation
600.00
Te Miringa Parkes
BA majoring in Māori/ B Com - majoring in Accounting, Innovation & entrepreneurship
600.00
Te Puawai Wilson-Leahy
Bachelor of Arts & Laws
600.00
Te Rua Wallace
Bachelor of Social Sciences- Major Environmental Planning and Māori & Indigenous Studies
600.00
Tibet Ranginui
Bachelor of Fine Arts with Honours
600.00
Titaha Townsend
Bachelor of Nursing
600.00
Trevor Waikawa
Bachelor of Science, Geography major
600.00
Wairaka Sueanna Hasler
Level 4 Cookery
600.00
Aaron Falwasser
NZ Cert in Food & Bev Level 4
700.00
Ahungarangi Poutini
Livestock Farming & Farm Resource Management - Awhiwhenua
700.00
Alana Louise Smith
Bachelor of Early Childhood Education
700.00
Anahera Wakefield
Bachelor of Nursing Level 7
700.00
Asher Katene
BA major Indigenous Development & Psychology
700.00
Casper -Rose Marama
Bachelor in Applied Management
700.00
Cheyenne Church
Bachelor of Veterinary Science - Pre Selection
700.00
Daniel Brooks
Bachelor Business Studies - Finance major
700.00
Dayna Ruihi Ellen Stevenson
Bachelor of Science - Psychology major
700.00
Flynn Matiu Oberdries
Bachelor of Science in Information Science, minor in Statistics
700.00
Grace Pokiha
Bachelor of Arts and Science
700.00
Harmony Te Amo
Aviation & Tourism Management Level 4 & 5
700.00
Hayden-Jade Taiaroa
BA Psychology
700.00
Isabella Hammond
$
CONTINUED
36
Te Āti Hau Trust EDUCATION GRANTS LIST
UNDERGRADUATE Recipient
Qualification
Pouturongo Whare Tapere
700.00
Hinengakau Karauria
Dipl. for Grads endorsed in Psychology & Bachelor of Science
700.00
Hope Rose Middleton
Art Design and Social Innovation
700.00
Israel Hepi
Bachelor of Teaching
700.00
Jacinda Te Amo
Te Pokaitahi Reo (Rumaki) Te Kaupae 3 & 4
700.00
Jack Potaka
Bachelor of Arts - Te Reo & LLB
700.00
Jesse Ngahina Williams
Bachelor of Engineering, Network Engineering
700.00
Jessica Rapana
Ag Challenge
700.00
Jocelyn McLean
Diploma in Conveyancing Level 6
700.00
Joni Bishop
Bachelor of Engineering with Honours Intermediate
700.00
Josephine Falwasser
Level 4 Culinary Arts
700.00
Josiah Thompson
NZ Cert. Food & Beverage Level 4
700.00
Kaesharn Hose
Bachelor of Arts
700.00
Katieanne Rask
Food & Beverage Levels 3 & 4
700.00
Kaylah Nikora-Baker
NZ Diploma in Business
700.00
Layton Kereama Rameka Rattray
National Certificate in Security Levels 2 & 3
700.00
Lee Michelle Ngatoa
Diploma in Chaplaincy
700.00
Lee Te Karere Ashford
Toiora Whanau
700.00
Leonnie Parekautaka Farr Motu
Te Taketake Diploma in Applied Addictions Counselling (Level 7)
700.00
Manahi Te Hiakai Gardiner
Bachelor of Science majoring in Physics
700.00
Maria Waitokia
NZ Cert. Whānau Ora Level 4
700.00
Marilyn Tamakehu
Heke Toiora Whānau
700.00
Maximus-Paul te Awhitu Bell- Wymer
Bachelor of Engineering with Honours in Civil Engineering
700.00
Michelle Robb
Te Ara Reo Māori (HE Pi Ka Rere) Level 4
700.00
Nova Elers
BA major in Philosophy
700.00
Orewea Wanakore
Tourism & Travel Levels 3 & 4
700.00
Oriwa Hohaia
Bachelor of Laws, Bachelor of Arts (Major in Maori Resource management)
700.00
Paulette Paretauhinga Le Gros
NZ Dip in Construction Level 6
700.00
Petaera Meihana
Carpentry Apprenticeship
700.00
Puna Whakaata Maniapoto-Love
Bachelor of Arts/ Bachelor of Law
700.00
Raina Wiari-Wroe
Carpentry Level 3
700.00
Raukura Doyle
Conjoint Degree in Bachelor of Health and Laws
700.00
Raumati McDonnell
Otago University
700.00
Rawinia Taiaroa
Commercial Road Transport
700.00
Raymond Marshall
BCITO
700.00
Rena Desina Silipa
B.Sc. in Psychology & Development studies
700.00
Renee Lawton
Small Business Studies Level 4
700.00
Ronan Heathcote
Law & International Relations
700.00
Sarah Hayley Te Ana Williams
Psychology, Criminology and Statistics
700.00
Shaunaye Schimanski
Bachelor of Science major in Genetics
700.00
Sidney Tuku
BA Arts
700.00
Sylvana Wiari
Bachelor of Bicultural Social Work
700.00
Takapuna Hamilton
NZ Diploma in Creativity Level 5
700.00
Hinehou Treanor
$
37
Te Āti Hau Trust EDUCATION GRANTS LIST
UNDERGRADUATE
Recipient
Qualification
Bachelor of Arts
700.00
Te Ahikaa Johnson
UCOL
700.00
Te Aotahi Rice-Edwards
Bachelor of Design Innovation
700.00
Te Matau Allen
Bachelor of Engineering with Honours
700.00
Te Matau o Te Rangi
Massey University
700.00
Te Puawai Wilson
Bachelor of Arts & Laws
700.00
Te Wehi Ratana
Building Apprenticeship
700.00
Terrence Ranginui
Bachelor of Commerce
700.00
Tyler-Kennedy Moana McCallum
Bachelor Of Arts Majoring in English Literature & Film
700.00
Vaishalee Renata
Bachelor Of Nursing
700.00
William Leonard Stevenson
Certificate in University Studies
Tamahina Sheridan
$
700.00 TOTAL 90,200.00
Te Āti Hau Trust GENERAL GRANTS LIST COMMUNITY Recipient
Grant Recipient Category
Waitangi Day Community Celebrations
500.00
Te Otene Paora Urwin
Digital Technology Trip USA Sep 26th-October 7th 2019
500.00
Kaiwhaiki Pa
Whanganui River Hunting Competition & Wild Food Festival
1,000.00
Tauira Neehi Maori Roopu
Attend Kaunihera o ngā Neehi Maori Hui a Tau
1,000.00
Tira Hoe Waka Committee
Financial assistance to offset operations for 31st annual Tira Hoe Waka 2019
Te Awanui a Rua Charitable Trust
$
5,000.00
TOTAL 8,000.00
SPORT ART TRAVEL
Recipient
Grant Recipient Category
National Youth Rugby League Competition
200.00
Aaliyah Taiaroa
National Māori Basketball Tournament
350.00
Kartiah Taiaroa
National Māori Basketball Tournament
350.00
Paige Taiaroa
National Māori Basketball Tournament
350.00
Raina Taiaroa
National Māori Basketball Tournament
350.00
Seth Ngatai
National Māori Basketball Tournament
350.00
Stevie Ngatai
National Māori Basketball Tournament
350.00
V'Chay-Latrell Wiari Hemopo
ASA NZ National Scooter Competition
350.00
Kaea Josephs-Ranginui
Assist with Riding For Disabled activity fees
471.50
Bailey Joshua Marumaru
NZ Invitational Team to Native American Basketball Invitational Tournament Age 17
Tiaho Te Maramatanga Hamahona-Taiaroa
38
$
500.00 CONTINUED
Te Āti Hau Trust GENERAL GRANTS LIST
SPORT ART TRAVEL
Recipient
Grant Recipient Category
NZBA Girls U16 Las Vegas tour 15th-30th July 2019
500.00
Jackson Hardwidge
Travelling and playing with the NZ ISA softball to Canada and playing in numerous tournaments
500.00
Jordan Herewini
U13 NZ Basketball Academy Tour of Las Vegas
500.00
Karaitiana Horne
NZ Motocross Junior Nationals plus training & development 2019-2020
500.00
Kaya-Mae Awhitu
NZ Touch Team touring Gold Coast & Brisbane in September 2019
500.00
Maraki Aumua
U16 Boys NZ Touch Development Tour 2019 (Australia)
500.00
Tukotahi Mareikura-Edmonds
World Hip Hop Championships, Phoenix Arizona 2019
500.00
Summer May Khan Turia
NZ Inline Hockey World Championships - Senior and Junior teams
Michael Leylander
Muay Thai Federation team to complete at IFMA World Championships in Bangkok,Thailand. 20-29 July 2019
1,000.00
Charlotte Kay Tuala
WINA Indoor Netball World Cup in Cape Town, South Africa
1,500.00
Kahureremoa Aki
Touch World Cup 2019 in Putrajaya
1,500.00
Kim Ranginui
Seeds Conservation Techniques
1,500.00
Shenaragh Nemani
Los Angeles Salsa Festival 2019
Hinetekawa Thomson-Laulu
$
700.00
1,500.00 TOTAL 14,821.50
CULTURAL Recipient
Grant Recipient Category
Yr10 Spirit Trophy Voyage Team
300.00
Christie Ngamihi Wallace
Whānau Support for Christie Wallace at National Manu Korero competition
350.00
Connor Pauro
Finalist in the National Ngā Pū Kōrero competition
Hailey & Tukotahi Mareikura-Edmonds
Representing NZ at World Hip Hop Dance Championships
1,000.00
Pakaitoire Trust
Pakaitaore 2019 Celebrations
1,000.00
Conna Scott Hawira
$
350.00
St Pauls Memorial Church Putiki
1,000.00
St Peter Chanel
Hui Aranga
1,000.00
St Vincents Maori Club
Hui Aranga
1,000.00
Te Roopu o Parikino
Hui Aranga
1,000.00
Te Wainui a rua
Hui Aranga
1,000.00
Para Kore Marae Incorporated
For Ruapehu representative to implement parakore in the Ruapehu rohe
Atihau Whanganui Incorporation
50 Year Celebration Book
Ratana (Ratana Oreikenui Trust)
Ratana 100 Year Celebrations
3,000.00 10,000.00 10,000.00 TOTAL 31,000.00
39
Te Āti Hau Trust GENERAL GRANTS LIST
MARAE
Recipient
Ngati Pamoana Hapu
Grant Recipient Category
Stage one: New Urupa Project for Koroniti Marae
$
15,000.00 TOTAL 15,000.00
KAUMATUA Recipient
Grant Recipient Category
Kamuamtua Health & Well Being
412.00
Margaret Haami
Kamuamtua Health & Well Being
459.00
Georgina Materina Duncan
Kamuamtua Health & Well Being
473.25
S&ra Louise Thocolich
Kamuamtua Health & Well Being
495.00
Adelaide Mere Taurerewa
Kamuamtua Health & Well Being
554.00
Elaine Pikitia Farr
Kamuamtua Health & Well Being
554.00
Fiona Lillian Phillips
Kamuamtua Health & Well Being
750.00
Adrianne Rowe
Kamuamtua Health & Well Being
760.00
Mary Joyce Te Haara
Kamuamtua Health & Well Being
828.00
Anini Matena
Kamuamtua Health & Well Being
848.00
Guy James Puhurangi Rerekura
Kamuamtua Health & Well Being
900.00
Ambrose Marino
Kamuamtua Health & Well Being
1,000.00
Amiria Beamsley
Kamuamtua Health & Well Being
1,000.00
Annette Hawe
Kamuamtua Health & Well Being
1,000.00
Bernadette Hadfield
Kamuamtua Health & Well Being
1,000.00
Christopher Te Iwima
Kamuamtua Health & Well Being
1,000.00
Doreen Barnes
Kamuamtua Health & Well Being
1,000.00
Ellen Gail Karamaena
Kamuamtua Health & Well Being
1,000.00
Henare Ryder
Kamuamtua Health & Well Being
1,000.00
Hine Stanley (2018)
Kamuamtua Health & Well Being
1,000.00
Hine Stanley (2019)
Kamuamtua Health & Well Being
1,000.00
Horiwia Charmaine Puru
Kamuamtua Health & Well Being
1,000.00
James Peeti
Kamuamtua Health & Well Being
Nikora Thomas Poumua
$
1,000.00 CONTINUED
40
Te Āti Hau Trust GENERAL GRANTS LIST
KAUMATUA Recipient
Grant Recipient Category
Kamuamtua Health & Well Being
1,000.00
Lilian Georgina Wardlaw
Kamuamtua Health & Well Being
1,000.00
Linda Ngaropi Goodgame
Kamuamtua Health & Well Being
1,000.00
Maata Wilks
Kamuamtua Health & Well Being
1,000.00
Margaret Menehira
Kamuamtua Health & Well Being
1,000.00
Maria Kaiwhare
Kamuamtua Health & Well Being
1,000.00
Marion Ngaropi Peeti
Kamuamtua Health & Well Being
1,000.00
Milford Taiaroa
Kamuamtua Health & Well Being
1,000.00
Pat Pene (Herehere Patricia Pene)
Kamuamtua Health & Well Being
1,000.00
Phillip Reweti
Kamuamtua Health & Well Being
1,000.00
Puawai Thompson
Kamuamtua Health & Well Being
1,000.00
Rahera Rae Yuma Apou
Kamuamtua Health & Well Being
1,000.00
Raita Tukia Tomlinson
Kamuamtua Health & Well Being
1,000.00
S&ra Te Onewhero Ranginui
Kamuamtua Health & Well Being
1,000.00
Tahu Wallace
Kamuamtua Health & Well Being
1,000.00
Taniwha Te Opetini Blackburn
Kamuamtua Health & Well Being
1,000.00
Terence Te Tua Ranginui
Kamuamtua Health & Well Being
1,000.00
Valerie Carmel Terarau Schultz (2017)
Kamuamtua Health & Well Being
1,000.00
Valerie Schultz (2018)
Kamuamtua Health & Well Being
1,000.00
Valerie Terarau (Carmel) Schultz (2019)
Kamuamtua Health & Well Being
1,000.00
Wahi Teki
Kamuamtua Health & Well Being
1,000.00
William Rangi Ranginui
Kamuamtua Health & Well Being
1,000.00
Joyce Kani (nee Tamakehu)
Kamuamtua Health & Well Being
Josephine Wymer
$
1,100.00 TOTAL 42,276.25
41
42
Ä€tihau-Whanganui Incorporation Financial Statements for the year ended 30 June 2019
43
Ä€tihau-Whanganui Incorporation FINANCIAL STATEMENTS 2019
CONTENTS
44
45
Shareholding and Committee of Management Disclosures
46
Statement of Comprehensive Income
47
Statement of Changes in Equity
48
Statement of Financial Position
49
Statement of Cash Flows
50
Notes to and forming part of the Financial Statements
57
14 Cash and Cash Equivalents
57
15 Stock on Hand
57
16 Biological Assets
59
17 Investments in Associates & Joint Ventures
60
18 Property, Plant & Equipment
61
19 Share Investments
61
20 Intangibles (Emmission Trading Units)
61
21 Borrowings
50
1 Reporting Entity
62
22 Programmed Property Maintenance
50
2 Statement of Compliance and Basis of Preparation
62
23 Limited Partnership Deferred Capital Contribution
50
3 Basis of Preparation
62
24 Unclaimed Dividends
50
4 Specific Accounting Policies
63
25 RFinancial Instruments
53
5 Critical Accounting Estimates
63
26 MÄ ori Authority Credit Account
54
6 Revenue from Contracts with Customers
64
27 Related Parties
54
7 Other Income
65
28 Contingent Libilities
55
8 Gains / (Losses) from Sale of Emission Trading Units
65
29 Subsequent Events
55
9 Finance Income
65
30 Operating Lease Arrangements
55
10 Depreciation & Loss on Sale
65
31 Commitments for Expenditure
55
11 Other Operating Expenses
65
32 Capital
55
12 Equity Accounted Investments
65
33 Reserves
56
13 Income Tax
66
Auditors' Report
Ātihau-Whanganui Incorporation SHAREHOLDING & COMMITTEE OF MANAGEMENT DISCLOSURES For the Year Ended 30 June 2019 Share Information
Greater than 5,000 shares Between 1,000 and 5,000 shares Between 500 and 1,000 shares Between 100 and 500 shares Between 5 and 100 shares Between 1 and 5 shares Under 5 shares Totals
No. of Shareholders 12 233 299 1,472 4,122 1,555 1,335 9,028
0.13% 2.58% 3.31% 16.30% 45.66% 17.22% 14.79% 100.0%
No. of Shares Held
111,995 448,100 210,641 347,810 133,239 4,239 504 1,256,529
8.91% 35.66% 16.76% 27.68% 10.60% 0.34% 0.04% 100.00%
Committee of Management - Shareholding CoM members have the following shares in the Incorporation registered in their names as at 30 Sept 2019. Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau Shar Amner Te Tiwha Puketapu Whatarangi Murphy-Peehi
61.05 1000 545.36 3104.35
This schedule does not include shareholdings registered in the name of Trusts of which a CoM member may be a beneficiary. Committee of Management - Meeting Attendance There were eight monthly meetings and one AGM of the Committee during the year. Member's attendance was as follows: Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau Sarah Bell Shar Amner Te Tiwha Puketapu Whatarangi Murphy-Peehi Laurissa Cooney
Ordinary 7 8 8 7 5 8 8 7 2
AGM 1 1 1 1 1 1 1 1 1
Committee of Management - Remuneration Members were paid fees and travel allowances during the financial year.
Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau Shar Amner Te Tiwha Puketapu Whatarangi Murphy-Peehi Laurissa Cooney
Fees $
Comment
28,739.89 28,739.89 51,947.22 Vehicle Provided 28,739.89 28,739.89 28,739.89 28,739.89 8,000.00
45
Ä€tihau-Whanganui Incorporation STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 30 June 2019 Note
2019 $
2018 $
16,892,283
15,682,000
1,558,111
1,712,785
REVENUE FROM CONTRACTS WITH CUSTOMERS Livestock
6
Milk Wool Apiary
6
998,565
1,056,821
2,540,154
2,263,741
21,989,113
20,715,347
OTHER INCOME Gain / (loss) from sale of emission trading units
8
190,000
199,100
Finance income
9
4,912
55,328
308,476
370,008
7
1,434,697
229,249
1,938,085
853,684
23,927,198
21,569,032
Rental income Other income TOTAL REVENUE & OTHER INCOME EXPENSES Farm working expenses
9,809,953
9,032,240
Employee benefits expense
4,723,510
3,978,872
Depreciation and loss on sale
10
2,228,642
1,952,813
1,269,543
1,341,512
Governance and shareholder expenses
674,663
671,194
Donations and scholarships
441,523
369,739
Repairs and maintenance
Other operating expenses
11
TOTAL EXPENSES NET SURPLUS BEFORE FINANCE COSTS AND NON OPERATING REVALUATIONS
1,597,331
1,161,497
20,745,166
18,507,867
3,182,032
3,061,164
(1,736,006)
(1,624,768)
FINANCE COSTS Interest expense
REVALUATION LOSSES Loss from equity accounted investments
(991,865)
(290,767)
Loss due to price changes on livestock
(584,635)
(147,379)
NET (DEFICIT)/ SURPLUS BEFORE INCOME TAX
(130,474)
998,250
(218,806)
(129,128)
88,332
1,127,378
Income tax expense - current year movement
12
13
NET (DEFICIT) / SURPLUS AFTER INCOME TAX OTHER COMPREHENSIVE INCOME Revaluation of share investments
46
(478,258)
(101,335)
Revaluation of property, plant & equipment
18
-
23,028,517
Revaluation of emission trading units
20
1,665,656
4,149,115
Share of gain on property revaluation of associates
12
336,386
2,443,526
Income tax relating to items that will not be reclassed subsequently
13
(291,490)
(2,691,199)
TOTAL OTHER COMPREHENSIVE INCOME - GAIN
1,232,294
26,828,624
TOTAL COMPREHENSIVE INCOME
1,320,626
27,956,002
These financial statements are to be read in conjunction with the accompanying notes
Ä€tihau-Whanganui Incorporation STATEMENT OF CHANGES IN EQUITY For the Year Ended 30 June 2019 Capital Reserves $ BALANCE AT 1 JULY 2018
PPE Reval Reserve $
Retained Earnings $
ETU Reserve $
24,311,005 100,829,518 27,199,527
6,988,144
Share Reserve $
Total Equity $
286,328 159,614,522
Adjustment to reclass land & buildings
-
-
-
-
-
-
Dividends paid
-
-
(816,741)
-
-
(816,741)
Transactions with owners
-
-
(816,741)
-
-
(816,741)
Net Surplus after Income tax
-
-
88,332
-
-
88,332
-
-
-
1,665,656
-
1,665,656
Other Comprehensive Income - Revaluation of emission trading units -R evaluation of property plant & equipment
-
-
-
-
-
-
- Revaluation of share investments
-
-
-
-
(478,258)
(478,258)
-S hare of gain (loss) on property revaluation of associates
-
336,386
-
-
-
336,386
- Income tax relating to items that will not reclassify Total Comprehensive Income for the Year
-
(291,490)
-
-
-
(291,490)
-
44,896
88,332
1,665,656
(478,258)
1,320,626
Transfer to Retained Earnings
-
-
-
-
-
-
BALANCE AT 30 JUNE 2019
24,311,005
100,874,414 26,471,118
8,653,800
(191,929) 160,118,407
BALANCE AT 1 JULY 2017
30,098,776
72,260,903 25,571,917
4,030,350
387,663 132,349,609
Adjustment to reclass land & buildings
(5,787,771)
5,787,771
-
-
-
-
Dividends paid
-
-
(691,089)
-
-
(691,089)
Transactions with owners
-
-
(691,089)
-
-
(691,089)
Net Surplus after Income tax
-
-
1,127,378
-
-
1,127,378
- Revaluation of emission trading units
-
-
-
4,149,115
-
4,149,115
- Revaluation of property, plant & equipment
-
23,028,517
-
-
-
23,028,517
- Revaluation of share investments
-
-
-
-
(101,335)
(101,335)
-S hare of gain (loss) on property revaluation of associates
-
2,443,526
-
-
-
2,443,526
- Income tax relating to items that will not reclassify
-
(2,691,199)
-
-
-
(2,691,199)
Total Comprehensive Income for the Year
-
22,780,844
1,127,378
4,149,115
(101,335)
27,956,002
Transfer to Retained Earnings
-
-
1,191,321 (1,191,321)
-
-
Other Comprehensive Income
BALANCE AT 30 JUNE 2018
24,311,005
100,829,518 27,199,527
6,988,144
286,328 159,614,522
A description of the nature and purpose of each reserve is stated in note 33.
These financial statements are to be read in conjunction with the accompanying notes
47
Ātihau-Whanganui Incorporation STATEMENT OF FINANCIAL POSITION As at 30 June 2019
Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Stock on hand Biological assets TOTAL CURRENT ASSETS
2019 $
2018 $
2,242,031 3,735,591 36,475,449 42,453,071
194,475 2,984,147 632,280 33,321,342 37,132,244
146,092,014 9,719,508 1,662,983 7,817,800 165,292,305
143,859,621 10,362,102 1,540,702 6,988,144 162,750,569
207,745,376
199,882,813
14 21 23
247,886 13,839,033 1,504,199 618,264 306,807 16,516,190
9,993,918 2,066,666 1,727,915 332,699 20,000 262,659 14,403,857
21 22 24 13
25,762,967 366,723 2,346,348 2,634,741 31,110,780
21,000,000 149,158 2,153,205 2,562,071 25,864,433
47,626,970
40,268,290
160,118,407
159,614,523
26,471,118 133,647,290
27,199,527 132,414,995
160,118,407
159,614,522
14 15 16
NON CURRENT ASSETS Property, plant & equipment Investments in associates and joint ventures Share Investments Intangibles TOTAL NON CURRENT ASSETS
18 17 19 20
TOTAL ASSETS CURRENT LIABILITIES Cash & cash equivalents Borrowings Limited Partnership deferred capital contribution Trade and other payables GST payable Te Āti Hau Trust Employee entitlements TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Borrowings Programmed property maintenance Unclaimed dividends Deferred tax liability TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Retained earnings Reserves
32 & 33
TOTAL EQUITY
The Committee of Management of Ātihau-Whanganui Incorporation authorised the financial statements for issue on 11 October 2019. Signed for and on behalf of the Committee of Management:
Mavis Mullins Chairperson 11 October 2019
48
Brendon Te Tiwha Puketapu Chairman of the Audit and Risk Committee 11 October 2019
These financial statements are to be read in conjunction with the accompanying notes
Ä€tihau-Whanganui Incorporation STATEMENT OF CASH FLOWS As at 30 June 2019
2019 $
2018 $
21,943,979
24,570,563
CASH FLOWS FROM OPERATING ACTIVITIES Cash was provided from: Receipts from operations Interest & dividends received
4,912
55,328
21,948,891
24,625,891
22,129,887
18,721,538
1,684,001
1,624,768
Cash was disbursed to: Payments to suppliers and employees Interest paid Net GST paid
NET CASH FLOWS FROM OPERATING ACTIVITIES
19,870
52,808
23,833,758
20,399,114
(1,884,867)
4,226,777
89,404
185,083
CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds from disposals of property, plant & equipment Proceeds from disposals of investments
1,026,000
-
1,115,404
185,083
Acquisition of property, plant & equipment
4,528,193
3,000,154
Purchase of investments
2,667,666
379,515
7,195,859
3,379,669
(6,080,455)
(3,194,586)
8,608,082
262,710
8,608,082
262,710
623,598
657,807
Cash was disbursed to:
NET CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCIAL ACTIVITIES Cash was provided from: Proceeds from borrowings Cash was disbursed to: Dividends Grants & donations
461,523
449,738
1,085,121
1,107,545
NET CASH FLOWS FROM FINANCIAL ACTIVITIES
7,522,961
(844,835)
Net (Decrease)/Increase in Cash Held
(442,361)
187,356
194,475
7,119
(247,886)
194,475
Cash at the Beginning of the Year CASH AT THE END OF THE YEAR
These financial statements are to be read in conjunction with the accompanying notes
49
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 STATEMENT OF ACCOUNTING POLICIES 1. REPORTING ENTITY Ātihau-Whanganui Incorporation (AWHI) is registered under the Te Ture Whenua Māori Act 1993 and is incorporated in New Zealand. 2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION
The financial statements have been prepared using the significant accounting policies and measurement basis that are in effect at 30 June 2019 as summarised below. These were used throughout all periods presented in the financial statements.
The financial statements for the Ātihau-Whanganui Incorporation have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP) under the requirements of the Financial Reporting Act 2013 and the Te Ture Whenua Māori Act 1993.
4. SPECIFIC ACCOUNTING POLICIES
Ātihau-Whanganui Incorporation is a for-profit entity for the purposes of complying with NZ GAAP. AWHI qualifies for NZ IFRS (RDR) as it is not a large for-profit entity. The Incorporation is eligible for and has elected to report in accordance with Tier 2 For Profit accounting standards and has applied disclosure concessions.
(a) Revenue Recognition Revenue from Contracts with Customers Revenue from contracts with customers comprises the expected value for the sale of goods and services, excluding Goods and Services Tax. Revenue is recognised either over time or at a point in time, as follows:
3. BASIS OF PREPARATION The financial statements have been prepared under the historical cost basis except for land & buildings, biological assets and some financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.
50
The information is presented in New Zealand Dollars and all values are rounded to the nearest dollar.
The following specific accounting policies which materially affect the measurement of the Statement of Comprehensive Income and Balance sheet have been applied:
Sale of Goods - Livestock AWHI sells livestock to third-party buyers. The livestock revenue is recognised at the point in time that control is assumed by the buyer, being the date that the animal is killed. The amount of revenue recognised is based on the industryaccepted market price provided by the buyer. Sale of Goods - Apiary AWHI sells honey product to a thirdparty buyer. Honey sale revenue is recognised when control of the goods has passed to the customer, being the point in time that the goods are delivered to the customer. The amount of revenue recognised is based on an agreed price list and is not subject to any variations or warranties. Sale of Goods - Milk AWHI sells milk to a third-party
buyer. The milk revenue is recognised at the point in time that control is assumed by the buyer, being the date of collection. The amount of revenue recognised is based on the industry-accepted market price provided by the buyer. Sale of Goods - Wool AWHI sells wool to third-party buyers. The wool revenue is recognised at the point in time that control is assumed by the buyer, being the date the wool is collected, or the date the wool is sold at auction. The amount of revenue recognised is based on the industryaccepted market price provided by the buyer. Other Income Rental income is recognised on a straight line basis over the term of the lease. Dividends received are recognised on receipt, net of nonrefundable tax credits. The policy for recognition of revenue for Emissions trading units is described in policy (g) below. (b) Expenses Expenses are recognised on a functional basis in the period in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. (c) Trade Receivables Trade Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less impairment. To determine impairment, AWHI uses a simplified approach to assess its expected credit losses. The impairment loss is recognised in the profit and loss component of the Statement of Comprehensive Income. (d) Property, Plant & Equipment Items of property, plant and equipment, except for land, are measured on the cost basis and
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of property, plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. Land is revalued every three years to the most recent rateable value (consistent with the requirements of Te Ture Whenua MÄ ori Act 1993). Revaluations to rateable value are considered a departure from accounting standard NZIAS16 because ratings values are general rather than specific revaluations. Revaluations are reflected through Other Comprehensive Income and cumulative revaluations reflected in the PPE Revaluation Reserve. All other repairs and maintenance are recognised as expenses in the Statement of Comprehensive Income in the financial period in which they are incurred. The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold land, is depreciated on a straight-line or diminishing value basis over the asset's useful life to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over
the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Depreciation rates applied to classes of assets are: Class Land Buildings Bridges Development Improvements Plant & Machinery Furniture & Fittings Motor Vehicles
From 0% 0% 2%SL 5%DV 0% 6%DV 8%DV 6%DV
To 0% 20%DV 20%DV 25%SL 40%DV 40%DV 40%DV 36%DV
Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the Statement of Comprehensive Income. (e) Income Tax The Incorporation is registered as a MÄ ori Authority for income tax purposes. Current income tax assets and/or liabilities comprise those obligations to, or claims from, Inland Revenue and other taxation authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint ventures is not provided if reversal of these temporary
differences can be controlled by the incorporation and it is probable that reversal will not occur in the foreseeable future. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future taxable income, based on the Incorporation's forecast of future operating results which is adjusted for significant non-taxable income and expenses and specific limits to the use of any unused tax losses or credit. Deferred tax liabilities are always provided in full. Deferred tax assets and liabilities are offset only when the incorporation has a right and intention to set off current tax assets and liabilities from the same taxation authority. Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in the profit or loss, except where they relate to items that are recognised in other comprehensive income (such as the revaluation of land) or directly in equity, in which case the related deferred tax is also recognised in other comprehensive income or equity, respectively. (f) Investments Investments in shares have been classified as fair value through other comprehensive income (OCI) for equity instruments. At balance date shares are revalued to fair value and any gains or losses reflected through other comprehensive income. (g) Intangible Assets (Emission Trading Units) Emission trading units have been purchased and earned off growing forestry.
51
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 Pre-1990 Forest Land AWHI land contains pre-1990 forest land subject to the provision of the NZ emissions trading scheme (ETS). If the land is deforested the owner is required to surrender NZ Emission Trading Units (NZUs) and any shortfall not held by the owner must be purchased for surrender. As there is no intention to change the land use (native forest) AWHI recognises them initially at cost and revalues them at reporting date through other comprehensive income and reserves. Post-1989 Forest Land AWHI chose to enter the ETC for post -1989 forest land and earn NZUs as forests grow and carbon is stored in the forest from a 2008 baseline. NZUs are required to be returned to the Crown if the carbon stored in the specified area reduces. NZUs are initially recognised at cost and revalued to market value at reporting date through comprehensive income and reserves. If the obligation to return units arises the obligation is recognised on the Balance Sheet. Revenue recognition - on derecognition gains or losses from the carrying value relating to the trading of NZUs are reflected in Net Surplus and the carrying value is transferred from revaluation reserve to retained earnings. (h) Financial Instruments Financial assets and financial liabilities are recognised when AWHI becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and liabilities (other than financial assets and financial liabilities that are fair value through profit and loss) are added to or deducted from the fair value of the financial assets or financial liabilities as appropriate, on
52
initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit and loss are recognised immediately in the profit and loss. Financial Assets AWHI classifies its financial assets into the following categories: "amortised cost" and "fair value through OCI for equity instruments". The classification depends on the nature and purpose of the financial assets, is determined at the time of initial recognition and re-evaluated by management at every reporting date. All transactions are recognised (or derecognised) on trade date basis. Fair value through OCI for equity instrument financial assets held by AWHI include supplier shares which are issued at $1 and if surrendered are repaid at $1. Where shares are able to be traded on the listed or unlisted exchange these are reflected at market value. They also hold shares for which there are value changes, including Fonterra shares. These are reflected at values advised by Fonterra. Dividends on these financial assets are recognised in net surplus when AWHI's right to receive the dividends is established. Financial assets recognised at amortised cost are non-derivative financial assets that are held with the objective to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. These financial assets include trade and other receivables, and cash and cash equivalents and are measured at amortised cost using the effective interest rate, less any impairment. Impairment of financial assets: At reporting date management reviews financial assets for impairment using the expected credit loss model.
Any impairment loss is recognised in the profit and loss component of the Statement of Comprehensive Income. Financial Liabilities Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial liabilities. No financial liabilities are held at fair value through profit and loss. Other financial liabilities (including borrowings and trade and other payables) are initially recorded at cost and subsequently measured at amortised cost using the effective interest method. Due to the short term nature of trade and other payables these are not discounted. Borrowings are subsequently measured at amortised cost using the effective interest method. All borrowing costs are recognised as an expense in the period they are incurred. (i) Provisions Provisions are recognised when the entity has an obligation which can be reliably measured at balance date as a result of a past event and it is probable that the entity will be required to settle the obligation. Where the entity expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Statement of Comprehensive Income net of any reimbursement. Provisions are measured at the present value of management's best estimate of the expenditure required to settle the obligation at balance date. Movements in the best estimate are recorded in the net surplus (Statement of Comprehensive Income). (j) Development Expenditure Development costs are deferred
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 where expenditure is carried out on AWHI's farming property over and above normal maintenance and future benefits are expected to exceed those costs. Deferred development costs are amortised over future periods in relation to expected future revenue in each period. Unamortised costs are reviewed at each balance date to determine the amount (if any) that is no longer recoverable, and any amount so identified is written off. Deferred development expenditure is reflected within property, plant and equipment. (k) Goods and Services Taxation (GST) All amounts are stated exclusive of goods and services tax (GST) except for accounts payable and accounts receivable which are stated inclusive of GST. (l) Investments in Associates and Joint Ventures Associates are those entities over which AWHI is able to exert significant influence but which are not subsidiaries. A joint venture is an arrangement that AWHI controls jointly with one or more other investors over which AWHI has rights to a share of the arrangement's net assets rather than direct rights to underlying assets and obligations for underlying liabilities. The Incorporation's investment in associates and joint ventures are accounted for using the equity method or accounting in the financial statements. Under the equity method, investments in associates and joint ventures are carried in the Balance Sheet at cost plus post-acquisition changes in the share of net assets of the associate and joint ventures. The carrying amount of the investment in associates and joint ventures is increased or decreased
to recognise AWHI's share of the net surplus and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with AWHI's accounting policies.
entitlements is recognised as a liability in the Balance Sheet. These benefits include salaries, wages and annual leave.
(m) Non-current assets held for sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is met when the asset (or disposal group) is available for immediate sale in present condition and the sale is highly probable. Management is committed to the sale which is expected to be completed within one year from the date of classification.
(q) Stock Feed and Inventory Stock feed on hand and other Inventories are stated at the lower of cost and net realisable value.
Non-current assets and disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. (n) Biological Assets Livestock are valued at their fair market value. Changes in the value of livestock are recognised in the Statement of Comprehensive Income. Value changes that form part of AWHI livestock management policies including animal growth and changes in livestock numbers are recognised in the Statement of Comprehensive Income within Revenue. Changes in value due to general livestock price movements are beyond AWHI's control. These value changes are recognised in the Statement of Comprehensive Income as gain/loss due to price changes on livestock. (o) Dividends Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at balance date. (p) Employee BeneďŹ t The provision for employee
(r) Government Grants Government grants (relating to assets) are deducted in arriving at the carrying amount of the asset. (s) Changes in Accounting Policies and Disclosures The Group has had to change its accounting policies following the adoption of NZ IFRS 9 Financial Instruments and NZ IFRS 15 Revenue from Contracts with Customers. This has not resulted in any retrospective changes to the financial statements. 5. CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with NZ IFRS RDR requires the use of critical accounting estimates. It also requires management to exercise its judgement in the process of applying the incorporation's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant are disclosed below. Valuation of Livestock AWHI values livestock using market values provided by PGG Wrightson Ltd. These market values reflect livestock of similar age, breed and genetic merit throughout New Zealand. Depreciation Rates Assessments are made of appropriate depreciation rates to be applied to property, plant and equipment based on useful lives and residual value of the assets.
53
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 6. REVENUE FROM CONTRACTS WITH CUSTOMERS 6a. Livestock Revenue
2019 $
2018 $
10,363,911
10,739,746
Sales Sheep Cattle Total Sales
6,456,840
6,282,368
16,820,751
17,022,114
Purchases Sheep
(1,198,115)
(854,589)
Cattle
(2,063,612)
(1,686,526)
Horses Total Purchases Increase / (Decrease) in value due to change in numbers Total Livestock Revenue
6b. Apiary Revenue
-
(3,913)
(3,261,727)
(2,545,028)
3,333,259
1,204,915
16,892,283
15,682,000
2019 $
2018 $
30,000
2,112,420
Sales Honey sales Honey harvested Other apiary sales Purchases Total Apiary Revenue
2,510,154
-
-
624,000
-
(472,679)
2,540,154
2,263,741
After balance date a contract has been entered to sell $2,083,418 of honey to Oha Honey. Honey harvested includes the fair value gain on produce that has been harvested but not yet sold to customers. The fair value measurement for honey is categorised as a level 3 fair value based on inputs to the valuation techniques used. Management have made judgements and estimates to measure the fair value. Honey is valued using the market comparison technique, in which the values are based on the market price of honey dependent on the type of tested honey and its UMF factor.
7. OTHER INCOME 2019 $
2018 $
791,898
(7,732)
22,244
-
Insurance recoveries
205,513
-
Other income
169,358
72,400
Rebates received
245,684
164,581
1,434,697
229,249
Apiary leases Gain on sale of fixed assets
54
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 8. GAINS / (LOSSES) FROM SALE OF EMISSION TRADING UNITS 2019 $
2018 $
Gain / (loss) on disposal of emission trading units
190,000
199,100
Total Gains and (Losses)
190,000
199,100
2019 $
2018 $
190
55,255
Interest income
4,722
73
Total Finance Income
4,912
55,328
2019 $
2018 $
1,868,284
1,929,939
360,358
22,874
2,228,642
1,952,813
2019 $
2018 $
32,135
19,645
Accountancy, legal and consultancy
219,784
408,534
Administration expenses
755,166
547,248
Project expenses
590,246
186,070
1,597,331
1,161,497
2019 $
2018 $
(991,865)
(290,767)
336,386
2,443,526
(655,479)
2,152,759
9. FINANCE INCOME
Dividends received
10. DEPRECIATION & LOSS ON SALE
Depreciation Loss on sale of property, plant and equipment Total Depreciation & Loss on Sale
11. OTHER OPERATING EXPENSES
Audit Fees
Total Operating Expenses
12. EQUITY ACCOUNTED INVESTMENTS
Share of deficit after tax Property revaluations and other comprehensive income movements Total (decrease) / increase in Equity Accounted Investments
55
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 13. INCOME TAX 13a. Income tax recognised in profit & loss
2019 $
2018 $
Deferred tax income relating to origination & reversal of temporary differences
(218,806)
(129,129)
Total income tax recognised in the current year
(218,806)
(129,129)
The income tax expense for the year reconciles to the accounting profit as follows: Net Surplus / (deficit) before income tax
(130,474)
998,250
(22,833)
174,694
(1,737)
(477,257)
- depreciation
(32,469)
176,728
- other temporary differences
181,912
69,036
- effect of carbon credit sales
-
208,863
- other permanent differences
(131,175)
(2,808)
6,302
(149,256)
Tax at the New Zealand tax rate applicable to Māori Authorities (17.5%) In calculating taxable income the following adjustments were made: Temporary differences - livestock
Permanent differences
Increase (decrease) in tax losses to carry forward
-
-
(218,806)
(129,129)
(218,806)
(129,129)
2019 $
2018 $
Deferred tax
(291,490)
(2,691,199)
Total income tax recognised in other comprehensive income
(291,490)
(2,691,199)
2019 $
2019 $
2019 $
Opening balance
Movement in profit & loss, other comp income or equity
Closing balance
(490,888)
(1,737)
(492,625)
(2,503,411)
(32,469)
(2,535,880)
67,718
(13,144)
54,574
1,705,591
67,713
1,773,304
Other
(1,341,081)
(93,033)
(1,434,114)
Total deferred tax liability
(2,562,071)
(72,670)
(2,634,741)
Adjustments recognised in current year in regard to current & deferred tax of prior years Income tax credit recognised in profit & loss
13b. Income tax recognised in other comprehensive income
13c. Income tax recognised in other comprehensive income Deferred tax assets & (liabilities) in relation to:
Livestock Property plant & equipment Provisions Unused tax losses
56
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
14. CASH AND CASH EQUIVALENTS
Cash at bank / (overdrawn) Deposits on call
2019 $
2018 $
(253,901)
188,562
6,015
5,913
(247,886)
194,475
The incorporation has an overdraft facility of $1,000,000 and a credit card facility of $43,000.
15. STOCK ON HAND
2019 $
2018 $
587,107
381,701
Raw Materials Feed Hive making materials
426,949
30,000
Total Raw Materials
1,014,056
411,701
2,681,165
173,880
40,370
46,698
Total Merchandise
2,721,535
220,578
Total Stock on hand
3,735,591
632,279
2019 $
2018 $
16,212,006
14,297,837
Merchandise Honey Wool
16. BIOLOGICAL ASSETS
Sheep Balance at the beginning of the year Increase due to purchases Decrease due to sales Biological transformations
1,198,115
854,589
(10,363,911)
(10,739,746)
10,139,626
10,060,144
Changes in fair value
1,245,983
1,739,183
Total sheep on hand
18,431,819
16,212,006
Balance at the beginning of the year
16,541,359
17,397,993
Increase due to purchases Decrease due to sales
2,063,612 (6,456,840)
1,686,525 (6,282,366)
Biological transformations
4,783,202
5,533,030
Cattle (Dairy & Beef)
Changes in fair value Total cattle on hand Horses on hand Bees on Hand Total Livestock
138,838
(1,793,822)
17,070,170
16,541,359
15,000
7,213
958,460
560,765
36,475,449
33,321,342
57
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 16. BIOLOGICAL ASSETS (CONTINUED)
The livestock consists of mixed age sheep and cows which are held for dairy and dry stock farming. The units on hand were counted by management and independently by PGG Wrightson (PGG) as at 30 June of 2019 and 2018. A valuation was undertaken by S Luoni (employed by PGG) who determined the fair value of the sheep and cattle. The valuation is based on reference to market evidence of current prices less point of sale costs. PGG is an independent registered valuer not related to the incorporation. The valuers hold recognised and relevant professional qualifications and have recent experience in the category of biological asset they have valued.
2019 Units
2018 Units
MA Ewes
43,500
35,131
2-Tooth Ewes
10,481
17,447
Ewe Hoggets
20,812
18,893
Mixed Lambs
25,606
21,511
921
985
Quantity of Sheep on Hand
Breeding Rams MA Wethers
39
106
101,359
94,073
MA Cows
3,133
2,937
R4 Heifers
544
730
R3 Heifers
1,076
975
R2 Heifers
1,879
1,935
Heifer Calves
2,008
1,851
157
155
Quantity of Beef and Dairy Cattle on Hand
Breeding Bulls R3 Bulls
16
14
R3 Steers
890
921
R2 Steers
1,901
1,865
Steer Calves
58
1,828
1,733
13,432
13,116
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 17. INVESTMENTS IN ASSOCIATES & JOINT VENTURES 2019 $
2018 $
AWHI has the following investments in associates & joint ventures:
Papahau Forestry Partnership
Ownership & Voting
Basis
50%
Valuation
966,568
1,620,379
Te Hou Limited Partnership
33.33%
Cost
8,752,940
8,741,723
Te Hou GP Limited
33.33%
Cost
-
-
9,719,508
10,362,102
Te Hou Limited Partnership is based on audited financial statements. Papahau forestry partnership accounts are unaudited. The AWHI share of this forest investment is market valued by Stuart Orme, a RMNZIF Registered Forestry Consultant of Woodnet (2005) Limited. Realisation of this investment will require investment in a bridge. Accordingly, the valuation has factored in a bridge investment of $2.2m and a 50% share of this cost has been offset against the 50% value taken up for the indicative forest value advised by Stuart Orme. The bridge investment costs are based on enquiries with engineers to construct. 2019 $
2018 $
1,620,379
1,635,473
(653,811)
(15,094)
Papahau Forestry Partnership Balance at the beginning of the year Share of surplus / deficit Capital contributions Balance at the end of the year
-
-
966,568
1,620,379
8,741,723
6,284,224
(325,169)
(258,737)
-
272,710
Te Hou Farms Limited Partnership Balance at the beginning of the year Share of surplus / deficit Development Capital contributions Revaluations Balance at the end of the year Classified as held for sale
336,386
2,443,526
8,752,940
8,741,723
-
-
Classified as non current assets
9,719,508
10,362,102
Total Investments in Associates & Joint Ventures
9,719,508
10,362,102
59
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 18. PROPERTY, PLANT & EQUIPMENT
As at 30 June 2019
Class
OPENING Acc Depn
Cost
Freehold Land
As at 30 June 2018 Bk Value
OPENING Acc Depn
Cost
105,230,000
-
105,230,000
87,119,700
-
87,119,700
11,490,400
-
11,490,400
7,871,400
-
7,871,400
Leasehold Land Improvements
5,269,969
832,115
4,437,854
4,849,572
790,165
4,059,407
16,574,996
2,131,658
14,443,338
15,324,049
2,049,560
13,274,489
Plant & Machinery
2,741,443
1,387,724
1,353,719
2,249,743
1,259,963
989,780
Motor Vehicles
3,267,715
1,299,464
1,968,251
2,715,058
1,060,131
1,654,927
Buildings & Bridges
Furniture & Fittings
837,483
587,025
250,458
827,672
538,428
289,244
22,287,831
17,626,739
4,661,092
21,168,980
16,459,078
4,709,902
167,699,837
23,864,725
143,835,112
142,126,174
22,157,325
119,968,849
24,510
-
24,510
-
-
-
167,724,347
23,864,725
143,859,622
142,126,174
22,157,325
119,968,849
Development Uncompleted Capital Works Total Property, Plant & Equipment
As at 30 June 2019 Class
Additions
Disposals
As at 30 June 2018
Revaluations
Freehold Land
-
-
Leasehold Land
-
-
-
Improvements
-
Depn & Amort
Additions
Disposals
Revaluations
-
-
-
18,110,300
-
-
-
3,619,000
Depn & Amort
-
-
-
-
34,623
-
-
420,397
41,950
1,086,799
196,043
-
103,345
372,127
-
878,820
82,098
Plant & Machinery
480,621
39,349
-
193,759
510,820
5,125
-
141,756
Motor Vehicles
433,116
140,843
-
474,768
964,035
202,832
-
447,877
Furniture & Fittings
133,551
1,021
-
41,669
9,811
-
-
48,597
Buildings & Bridges
Development Uncompleted Capital Works Total Property, Plant & Equipment
2,264,386
50,262
-
1,020,120
1,118,851
-
-
1,167,661
4,398,473
427,518
-
1,868,284
2,975,644
207,957
23,028,517
1,929,939
154,231
-
-
-
24,510
-
-
-
4,552,704
427,518
-
1,868,284
3,000,154
207,957
23,028,517
1,929,939
As at 30 June 2019 Class
Freehold Land Leasehold Land Improvements Buildings & Bridges
Cost
105,230,000
CLOSING Acc Depn
As at 30 June 2018 Bk Value
Cost
CLOSING Acc Depn
-
Bk Value
-
105,230,000
105,230,000
105,230,000
11,490,400
-
11,490,400
11,490,400
-
11,490,400
5,269,969
866,738
4,403,231
5,269,969
832,115
4,437,854
17,421,604
2,190,855
15,230,749
16,574,996
2,131,658
14,443,338
Plant & Machinery
3,092,160
1,490,928
1,601,232
2,741,443
1,387,724
1,353,719
Motor Vehicles
3,339,198
1,553,442
1,785,756
3,267,715
1,299,464
1,968,251
852,824
511,505
341,319
837,483
587,025
250,458
Furniture & Fittings Development Uncompleted Capital Works Total Property, Plant & Equipment
60
Bk Value
24,485,348
18,630,252
5,855,096
22,287,831
17,626,739
4,661,092
171,181,503
25,243,720
145,937,783
167,699,837
23,864,725
143,835,112
154,231
-
154,231
24,510
-
24,510
171,335,734
25,243,720
146,092,014
167,724,347
23,864,725
143,859,622
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 18. PROPERTY, PLANT & EQUIPMENT (CONTINUED) 18a. Land was revalued to latest general revaluation performed by Quotable Value Limited as at 1 July 2017 (Ruapehu District Council) and 1 September 2016 (Whanganui District Council). The valuation by Quotable Value ('ratings valuation') is considered a departure from accounting standard NZ IAS 16 primarily because ratings valuations are general rather than specific appraisals. 18b. Government grants under the Nga Whenua Rahui scheme have been deducted in arriving at capitalised fencing classed as development. 2019 Number of Shares
2018 Number of Shares
2019 $
2018 $
Ravensdown
500,000
500,000
500,000
500,000
Fonterra Co-operative Group
189,764
189,764
603,449
1,032,316
52,632
-
24,638
-
RAL Gondola Shares
1
-
500,000
-
Other share investments
-
-
34,896
8,386
1,662,983
1,540,702
19. SHARE INVESTMENTS
Headwaters Shares
Total Share Investments
The Fonterra shares have been revalued to their impaired value at 23 September 2019 of $3.18 per share.
20. INTANGIBLES (EMISSION TRADING UNITS) All units are NZUs
2019 Number of Units
2018 Number of Units
2019 $
2018 $
236,512
6,988,144
4,032,529
Additions
43,341
167,849
-
-
Disposals
(40,000)
(70,000)
(836,000)
(1,193,500)
-
-
1,665,656
4,149,115
337,702
334,361
7,817,800
6,988,144
2019 $
2018 $
Current
13,839,033
9,993,918
Non-Current
25,762,967
21,000,000
Total Borrowings
39,602,000
30,993,918
142,209,476
140,319,652
36,475,449
33,321,342
178,684,925
173,640,994
Balance at beginning of the year
Revaluations Balance at end of the year
334,361
21. BORROWINGS Secured
Secured liabilities and assets pledged as security The BNZ borrowings are secured by a registered first mortgage over specific land and a charge over all livestock owned by AWHI. Alienation of such Māori freehold land is subject to Te Ture Whenua Māori Act 1993 requirements. The carrying value of assets pledged as security for borrowings are: Certificate WN7D/391 Livestock Total pledged assets
61
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
22. PROGRAMMED PROPERTY MAINTENANCE 2019 $
2018 $
Current liabilities - included in Trade and other payables
174,524
124,344
Non current liabilities - Programmed property maintenance
366,723
149,157
541,247
273,501
The incorporation previously had entered into 7 agreements with Programmed Property Services Ltd (the contractor) for an agreed programme of work covering a 10 year period. The programme provides for exterior paint of farm buildings and farm houses, with regular maintenance in subsequent years. The agreements had total annual payments of $124,344 (gst excl.). During the 2019 year two agreements were cancelled and two new agreements were formed changing the annual payment to approximately $174,524 (gst excl.) The liability is a best estimate of the actual amount of work performed by the contractor for which the contractor has not been paid at balance sheet date. The liability has not been adjusted for inflation and the effect of the time value of money.
23. LIMITED PARTNERSHIP DEFERRED CAPITAL CONTRIBUTION 2019 $
2018 $
-
2,066,666
Capital contribution liability
On 26 May 2014 AWHI entered into a Limited Partnership which operates an arable, dairy and dry stock operation with forestry. The agreement includes the requirement to contribute capital to the limited partnership. This was paid in 2019.
24. UNCLAIMED DIVIDENDS
Balance at beginning of the year Dividend declared
62
2019 Cents per share
2018 Cents per share
-
-
2019 $
2018 $
2,153,205
2,119,923
65
55
816,741
691,089
Dividends paid
-
-
(623,598)
(657,807)
Total Unclaimed Dividends
-
-
2,346,348
2,153,205
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
25. FINANCIAL INSTRUMENTS
Financial Assets 2019 Trade and other receivables (GST excl.)
Amortised Cost $
Financial Liabilities 2019
Fair Value through Other Comp Inc $
$
Total $
1,883,599
-
-
1,883,599
-
-
1,662,983
1,662,983
1,883,599
-
1,662,983
3,546,582
Investment in shares Total Financial Assets
Cost
Amortised Cost $
Cost
Fair Value through Other Comp Inc $
$
Total $
Cash and cash equivalents
247,886
-
-
247,886
Trade and other payables (GST excl.)
984,981
-
-
984,981
Borrowings
39,602,000
-
-
39,602,000
Total Financial Liabilities
40,834,868
-
-
40,834,868
Financial Assets 2018 Cash and cash equivalents Trade and other receivables (GST excl.)
Amortised Cost $
Financial Liabilities 2018 Trade and other payables (GST excl.) Te Hou LP deferred contribution
Fair Value through Other Comp Inc $
$
Total $
194,475
-
-
194,475
2,573,559
-
-
2,573,559
-
-
1,540,702
1,540,702
2,768,034
-
1,540,702
4,308,736
Investment in shares Total Financial Assets
Cost
Amortised Cost $
Cost
Fair Value through Other Comp Inc $
$
Total $
1,312,034
-
-
1,312,034
2,066,666
-
-
2,066,666
Borrowings
30,993,918
-
-
30,993,918
Total Financial Liabilities
34,372,618
-
-
34,372,618
2019 $
2018 $
26. MĀORI AUTHORITY CREDIT ACCOUNT
a) Māori Authority Credit Account balance at the end of the year b) Balance of retained earnings earned prior to 2004.
365,329
364,889
13,404,399
14,221,140
Dividends paid from retained earnings prior to 2004 have no Māori Authority Credits attached.
63
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 27. RELATED PARTIES Year end receivable or (payable)
Payments received or (paid) during the year
2019 $
2018 $
2019 $
2018 $
-
(20,000)
(432,827)
(360,000)
-
-
-
5,856
-
-
(2,609)
(2,609)
-
-
(630)
(2,630)
-
-
(150)
(7,418)
-
-
(7,705)
-
(500)
-
(444,421)
(366,801)
a) Te Āti Hau Trust Donations to the Trust AWHI is the settlor of Te Āti Hau Trust and appoints the trustees (3 from the AWHI Committee and 2 Independents). The results of the Trust have not been consolidated as the effect would be immaterial. b) Kaahu Estate Ltd (W Murphy-Peehi (CoM) is a Shareholder and director)
AWHI sold consumables and labor to Kaahu Estate Ltd in 2018. In 2017 AWHI managed hives on behalf of Kaahu Estate Ltd on their land and the income resulting from the produce of those hives was shared. c) Ngā Tangata Tiaki ( K Ponga & R Tinirau (CoM) are Trustees) AWHI paid sponsorship for an Iwi Chairs forum. d) Ngāti Rangi Trust (S Amner & K Ponga (CoM) are Trustees) AWHI made payment to Ngāti Rangi Trust during the year for room hire. e) Ruapehu Recruitment (S Amner (CoM) is the Director) AWHI made payments to Ruapehu Recruitment Ltd for contracted labour. f) SA Consulting (S Amner is the Managing Director) AWHI made payments to SA Consulting for assistance with grant funding. g) Intugen Limited (C Wilson is the Managing Director) AWHI made payments to Intugen for the 50th year book.
-
(20,000)
Related Party Transactions with Associates & Joint Ventures
Te Hou Farms Limited Partnership is an associate of, and has shared Governance with, AWHI. The total interest in Te Hou Limited Partnership is $8,752,940 (2018: $8,741,723) as disclosed in note 17. During the period AWHI made payments of $2,066,666 to fulfil their contracted capital contribution requirement (see note 23). No additional development capital contributions were made during the period (2018: $272,710). AWHI has a joint venture investment in Papahau Forestry Partnership. The total interest in Papahau Forestry Partnership is $966,568 (2018: 1,620,379), as disclosed in note 17. During the period AWHI made payments of $12,885 (2018: nil) for insurance, marketing and rates.
Key Management Personnel Compensation Key management of the Incorporation are the members of the Committee of Management, the Chief Executive Officer, Finance Manager, Business Manager, People & Safety Manager and the Station Managers. Total Key Management Personnel remuneration
64
2019 $
2018 $
1,870,507
1,604,857
Ä€TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 28. CONTINGENT LIABILITIES
2019 $
2018 $
13,490,362
11,343,203
13,490,362
11,343,203
2019 $
2018 $
96,948
98,935
86,156
80,860
Later than one year and less than five years
228,351
123,183
Later than five years
282,186
-
596,693
204,042
2019 $
2018 $
a) Arising from the Emissions Trading Scheme There is a contingent liability relating to the Carbon Account Record which represents the total number of units which are required to be surrendered when or if land is withdrawn from the the ETS. Management have no plans to change land use at this time which would trigger such a liability. The forest on affected land is insured against forest fire. There is also a contingent liability relating to two employment disputes, which is unable to be quantified. Total
29. SUBSEQUENT EVENTS There have been no subsequent events after year end (2018: Nil).
30. OPERATING LEASE ARRANGEMENTS Operating leases relate to leases of offices and land. Operating lease expense (included in Farm working and Other operating expenses)
Non-cancellable operating lease Not later than one year
31. COMMITMENTS FOR EXPENDITURE Commitments for the acquisition of property, plant and equipment Commitments for the acquisition of share investments
-
198,446
114,174
-
114,174
198,446
$114,174 of Alliance Group Limited (Alliance) shares are required to be purchased to fulfil shareholding requirements. This amount will gradually be deducted from any future livestock sales to Alliance.
32. CAPITAL Number of shares (fully paid)
2019 Number
1,256,529
2018 Number
1,256,529
These shares have no par value and share equally in dividends paid.
33. RESERVES Retained Earnings Retained Earnings comprise the Incorporations accumulated net profits less dividends paid. Capital Reserves Capital Reserves represent realised capital profits predominantly arising from Crown grants. PPE revaluation reserve The property reserve arises on the revaluation of land and buildings. When revalued land and buildings are sold, the proportion of the property revaluation reserve that relates to the asset is transferred to capital reserves. ETU reserve The Emissions trading units reserve represents revaluations of emission trading units. When revalued ETUs are sold, the proportion of the reserve that relate to those units are transferred to retained earnings. Share Reserve The Available For Sale share reserve represents unrealised revaluations of share investments.
65
SILKS AUDIT
PO Box Box 7144 7144 PO Whanganui 4541 4541 Whanganui New Zealand Zealand New
Chartered Accountants Limited
T: (06) (06) 345 345 8539 8539 T: F: (06) (06) 345 345 2212 2212 F: ctown@silks.co.nz E: ctown@silks.co.nz www.silksaudit.co.nz www.silksaudit.co.nz
INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF ĀTIHAU WHANGANUI INCORPORATION TO THE MEMBERS OF ĀTIHAU-WHANGANUI INCORPORATION
Opinion We have audited the financial statements of Ātihau Whanganui Incorporation (the Incorporation) on pages 38 46 to 57, 65, which comprise the statement of financial position as at 30 June 2018, 2019, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the possible effects of the matters described under the Basis for Opinion section, the accompanying financial statements present fairly, in all material respects, the financial position of the Incorporation as at 30 June 2018, 2019, and its financial performance and its cash flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR). Basis for Qualifi ed Opinion on Financial Position Basis for Qualifi ed Opinion on Financial Position As disclosed in the accounting policy on page 42 to the financial statements, the land and buildings are reported at the latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial Reporting Standards – NZ IAS 16 Accounting for Property, Plant & Equipment, which, when the revaluation model is chosen for property, plant and equipment, require such assets to be stated at fair value at the date of the revaluation less any subsequent accumulated depreciation and impairment losses. Consequently, we were unable to determine whether any adjustment to these amounts was necessary, which affects the gross carrying amount of land and buildings, their accumulated depreciation, depreciation expense, revaluation increases/ decreases and shareholders' equity. We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other than in our capacity as auditor we have no relationship with, or interests in, the Incorporation. Emphasis of Matter As disclosed in note 15 to the financial statements the incorporation undertook a valuation of the Papahua Forestry. The of the bridge which creates a material uncertainty as to the value.provided Due to this valuation excluded included the cost incorporations 50 construction percent share of the cost of the bridge construction. Theforest estimated to uncertainty no adjustment has been made for the carrying value of thewhich Papahua Forestry partnership investment. We have the incorporation had a variation range of approximately 10% to 15% creates a material uncertainty as to the closing not modifi ed our respect ofathis matter. forest value. Dueopinion to this in uncertainty further adjustment maybe required to the carrying value of the Papahua Forestry partnership investment. We have not modified our opinion in respect of this matter.
Principals: Cameron Town, Talia Anderson-Town.
Whanganui
58 66
Taranaki
Manawatu
Central Plateau
Auckland Auckland
ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
SILKS AUDIT
PO Box Box 7144 7144 PO Whanganui 4541 4541 Whanganui New Zealand Zealand New
Chartered Accountants Limited
T: (06) (06) 345 345 8539 8539 T: F: (06) (06) 345 345 2212 2212 F: E: ctown@silks.co.nz ctown@silks.co.nz E: www.silksaudit.co.nz www.silksaudit.co.nz
INDEPENDENT AUDITOR’S REPORT Trustees Responsibilities for the Financial Statements TO THE MEMBERS OF ĀTIHAU-WHANGANUI INCORPORATION The Trustees are responsible on behalf of the Incorporation for the preparation and fair presentation of the financial statements in accordance with NZ IFRS RDR, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Opinion We have audited financial statementsthe of Ātihau Whanganui Incorporation (the Incorporation) on pagesfor38assessing to 57, which In preparing the the financial statements, Trustees are responsible on behalf of the Incorporation the comprise the statement financialas position as concern, at 30 June 2018, andasthe statementmatters of comprehensive income, statement Incorporation’s ability toofcontinue a going disclosing, applicable, related to going concern and of changes in equity and statement of cash flows for the then ended, and notes to the fithe nancial statements, using the going concern basis of accounting unless theyear Trustees either intend to liquidate Incorporation or including to cease aoperations, summary of accounting policies. or signifi have cant no realistic alternative but to do so. In our opinion, except for the possible effectsof of the the matters described under the Basis for Opinion section, the accompanying Auditors Responsibilities for the Audit Financial Statements fiOur nancial statements fairly, in all assurance material respects, the financial positionstatements of the Incorporation 30from Junematerial 2018, objectives are topresent obtain reasonable about whether the financial as a whole as areatfree and its financialwhether performance owstoforissue the an year then ended accordance with New Zealand equivalents to misstatement, due to and frauditsorcash error,fland auditor’s reportinthat includes our opinion. Reasonable assurance International Reporting Reduced Regime (NZ IFRS RDR). with ISAs (NZ) will always detect a is a high levelFinancial of assurance, but isStandards not a guarantee thatDisclosure an audit conducted in accordance material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually Basis for Qualifi ed Opinion on Financial Position or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of As disclosed the accounting policy on page 42 to the financial statements, the land and buildings are reported at the these financialinstatements. latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial Reporting NZthe IAS 16 Accounting for Property, Plantthose & Equipment, when the revaluation model is chosen A detailed Standards description–of auditors’ responsibilities including related towhich, assessment of risk of material misstatement, for property, and equipment, require suchassumptions assets to be stated at fair value at the date are of the revaluation any evaluation of plant appropriateness of going concern and determining key audit matters available on theless external subsequent accumulated reporting board website: depreciation and impairment losses. http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-8/ Consequently, we were unable to determine whether any adjustment to these amounts was necessary, which affects the gross Othercarrying Matter amount of land and buildings, their accumulated depreciation, depreciation expense, revaluation increases/ decreases andstatements shareholders' equity.Whanganui Incorporation for the year ended 30 June 2017 were audited by another The financial of Ātihau auditor who expressed a modified opinion for the use of Rateable Value to value the land and buildings on those statements We conducted audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities on 20 Octoberour 2017. under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Report on other Legal and Regulatory requirements Code of Ethics for Assurance issued by theby New Zealand Assurance Standards Boardhas andbeen the The Share Register and IndexPractitioners of Shareholders required Section 263Auditing of the Teand Ture Whenua Maori Act 1993, International Standards for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we compiled andEthics correctly kept byBoard the Incorporation. have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained Restriction on Distribution or Useis sufficient and appropriate to provide a basis for our opinion. This report is made solely to the Shareholders, as required by section 277 of the Te Ture Whenua Maori Act. Our audit Other thanundertaken in our capacity as auditor westate haveto nothe relationship with, orshareholders interests in, those the Incorporation. has been so that we might Incorporation’s matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume Emphasis ofto Matter responsibility anyone other than the Incorporation Shareholders, as a body, for our audit work, for this report, or for the As disclosed in note 15 to the financial statements the incorporation undertook a valuation of the Papahua Forestry. The opinions we have formed. valuation excluded the cost of the bridge construction which creates a material uncertainty as to the forest value. Due to this uncertainty no adjustment has been made for the carrying value of the Papahua Forestry partnership investment. We have not modified our opinion in respect of this matter.
Silks Audit Chartered Accountants Ltd Whanganui, New Zealand Date: 11 October 2019
Principals: Principals: Cameron Cameron Town, Town, Talia Talia Anderson-Town. Anderson-Town.
Whanganui
58
Taranaki
Manawatu Manawatu
Central Central Plateau Plateau
Auckland Auckland
67
68
Te Āti Hau Trust Financial Statements for the year ended 30 June 2019
69
Te Āti Hau Trust FINANCIAL STATEMENTS 2019
CONTENTS 71
Entity Information
72
Statement of Service Performance
73
Statement of Financial Performance
74
Statement of Financial Position
75
Statement of Cash Flows
76
Notes to and forming part of the Financial Statements
76 1 Statements of Accounting Policies 76 2 Donantions, Fundraising and Other Similar Renevue 77 3 Interest, Dividends and Other Investment Revenue 77 4 Volunteer and Employee Related Costs 77 5 Costs related to Providing Goods or Services 77 6 Grants and Donations 78 7 Other Expenses 78 8 Property, Plant & Equipment 78 9 Trust Capital 79 10 Accumulated Funds 79 11 Related Party Information 79 12 Tribal Purposes 79 13 Commitments 79 14 Contingent Liabilities and Guarantees 79 15 Events Occurring After Balance Date 80
70
Auditors' Report
Te Āti Hau Trust ENTITY INFORMATION As at 30 June 2019 Te Āti Hau Trust is a Discretionary Trust, established by a trust deed dated 23 April 2009 and registered under the Charities Act 2005.
Entity's Purpose or Mission
The support of the educational and cultural aims of the Māori people in the district. Operations are governed by its Trust Deed that aligns to and supports the requirements of the Charities Act.
Address
c/- Balance Chartered Accountants 16 Bell Street WHANGANUI 4500
Entity Structure
Te Āti Hau Trust is a Charitable Trust incorporated under the Charitable Trusts Act 1957 and is also registered under the Charities Act 2005.
Trustees
Appointed by Ātihau-Whanganui Incorporation Keria Ponga (Chairperson) Shar Amner Whatarangi Murphy-Peehi Independent Trustees Aaron Rice Edwards Jessica Smith
Beneficiary
Ātihau Shareholders & Stakeholders
Main Sources of Cash and Resources
Tribal purposes grant from Ātihau-Whanganui Incorporation approved annually at the Ātihau Annual General Meeting.
GST
Not Registered
Accountants
Balance Chartered Accountants Limited Chartered Accountants 16 Bell Street Whanganui
Auditor
Silks Audit Chartered Accountants Whanganui
Bankers
Bank of New Zealand Whanganui
Solicitors
Horsley Christie Whanganui
IRD Number
102-612-817
Registered Charity Number
CC41172
The Trustees are pleased to present the approved Performance Report including the historical Performance Report of Te Āti Hau Trust for the year ended 30 June 2019. For and on behalf of the Trustees:
Keria Ponga Trust Chairperson 26 September 2019
Aaron Rice-Edwards Trustee 26 September 2019
71
Te Āti Hau Trust STATEMENT OF SERVICE PERFORMANCE For the Year Ended 30 June 2019 Description of Trust's Outcomes Te Āti Hau Trust was established in 2009 as a charitable arm of Ātihau-Whanganui Incorporation to apply funding for charitable, cultural, philanthropic, educational, recreational and other purposes, being purposes beneficial principally to the Shareholders and Stakeholders. Those grants may include Māori cultural development and support, educational and vocational development and support, social development and support, marae development and support, health and welfare development and support, and the fostering of strategic alliances with persons promoting or assisting with any of these objects. The grants are made under the following guiding principles: Mātauranga Education Kotahitanga Unity of Purpose Manaakitanga Nurture and reciprocate Whanaungatanga Collaboration Rangatiratanga Leadership Wairuatanga Spirituality Mana Whenua Responsibility to the land and the people Kaitiakitanga Active stewardship Mana Tūpuna Legitimacy Te Reo Identity
Grants Made Actual 2019 Number
Actual 2018 Number
Actual 2019 $
Actual 2018 $
Sports Art and Travel
23
35
14,822
13,930
Cultural
13
13
31,000
33,095
Marae
1
5
15,000
57,650
Community
5
-
8,000
-
Tangihanga tent
66
66
19,800
19,800
Kaumātua Assistance
47
28
42,276
22,820
155
147
130,898
147,295
General Grants
Education Grants Tertiary - Undergraduate Full Time
154
127
90,551
76,942
Medical
41
28
27,700
21,800
Secondary School - Year 10 and 11
57
61
14,250
15,250
1
3
1,000
2,800
31
13
41,050
18,400
1
2
3,000
6,000
PHD
-
2
-
6,000
Overseas Grants
4
2
7,600
3,700
High Performance Post Graduate Agriculture
Balance / Deloitte
72
1
-
1,000
-
290
238
186,151
150,892
These financial statements are to be read in conjunction with the accompanying Notes.
Te Āti Hau Trust STATEMENT OF FINANCIAL PERFORMANCE For the Year Ended 30 June 2019
Note
Actual 2019 $
Actual 2018 $
Donations, fundraising and other similar revenue
2
432,827
360,000
Interest, dividends and other investment revenue
3
Revenue
Total Revenue
23
14
432,850
360,014
Less Expenses Volunteer and employee related costs
4
20,175
8,825
Costs related to providing goods or services
5
62,972
43,214
Grants and donations
6
317,048
298,187
Other expenses
7
206
4,364
400,401
354,590
32,449
5,424
Total Expenses Surplus
These financial statements are to be read in conjunction with the accompanying Notes.
73
Te Āti Hau Trust STATEMENT OF FINANCIAL POSITION As at 30 June 2019
Note
2019 $
2018 $
Trust Capital
38,264
5,815
Total Accumulated Funds
38,264
5,815
83,284
52,290
-
20,000
83,284
72,290
396
602
83,680
72,892
Creditors and Accrued Expenses
45,416
67,077
Total Liabilities
45,416
67,077
Net Assets
38,264
5,815
Accumulated Funds
Represented by: Current Assets Cash & Bank Balances Debtors and Prepayments Total Current Assets Non-Current Assets Property, Plant & Equipment
8
Total Assets Current Liabilities
For and on behalf of the Trustees:
Keria Ponga Trust Chairperson 26 September 2019
74
Aaron Rice-Edwards Trustee 26 September 2019
These financial statements are to be read in conjunction with the accompanying Notes.
Te Āti Hau Trust STATEMENT OF CASH FLOWS For the Year Ended 30 June 2019
Note Cash Flows from Operating Activities
2019 $
2018 $
452,827
440,001
Cash was received from: Donations, fundraising and other similar revenue Interest, dividends and other investments
22
14
452,849
440,015
79,682
56,018
342,173
345,257
421,855
401,275
Net Cash Flows from Operating Activities
30,994
38,740
Net Increase in Cash Held
30,994
38,740
Cash at the Beginning of the Year
52,290
13,550
Cash at the End of the Year
83,284
52,290
83,284
52,290
Cash was applied to: Payments to suppliers and employees Donations and grants paid
This is represented by: Cash & Bank Balances
These financial statements are to be read in conjunction with the accompanying Notes.
75
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019
1. STATEMENT OF ACCOUNTING POLICIES Statement of Compliance and Basis of Preparation Te Āti Hau Trust is eligible to apply Tier 3 PBE Accounting Requirements : 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. The trust has elected to report in accordance with PBE SFR-A (NFP). All transactions in the Performance Report are reported using the accrual basis of accounting. The accounting principles recognised as appropriate for the measurement and reporting of the Statement of Financial Performance and Statement of Financial Position on a historical cost basis are followed by the trust, unless otherwise stated in the Specific Accounting Policies. The information is presented in New Zealand dollars. All values are rounded to the nearest $. The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future.
SPECIFIC ACCOUNTING POLICIES The following specific accounting policies which materially affect the measurement of the Statement of Financial Performance and Statement of Financial Position have been applied: a) Revenue Recognition Grant income is received annually as a result of an agreed tribal purposes grant. Any outstanding grant income not utilised by 30 June is not returnable. Interest received is recognised as interest accrued, gross of refundable tax credits received. b) Expenses Expenses have been classified by their business function. Grant expenses are recognised when approved by the trustees. c) Trade Receivables Trade Receivables are recognised at estimated realisable value. d) Property, Plant & Equipment Property, plant and equipment is recognised at cost less aggregate depreciation. Historical cost includes expenditure directly attributable to the acquisition of assets, and includes the cost of replacements that are eligible for capitalisation when these are incurred.
All other repairs and maintenance are recognised as expenses in the Statement of Financial Performance in the financial period in which they are incurred. Depreciation has been calculated using rates appropriate to spread the cost of the asset less any residual value over its useful life. The following estimated depreciation rates/useful lives have been used: Office Equipment 13 - 50% Gains and losses on disposal of fixed assets are taken into account in determining the net result for the year. e) Income Tax The Trust has charitable status and is exempt from income tax. f) Goods and Services Taxation (GST) The amounts recorded in the performance report are inclusive of GST (if any). The trust is not registered for GST. g) Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on a basis consistent with those from the previous performance report.
2. DONATIONS, FUNDRAISING AND OTHER SIMILAR REVENUE
76
2019 $
2018 $
Ātihau-Whanganui Incorporation Tribal Purposes Distributions
432,827
360,000
Total Donations, fundraising and other similar revenue
432,827
360,000
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019
3. INTEREST, DIVIDENDS AND OTHER INVESTMENT REVENUE
Interest Received - Gross Total Interest, dividends and other investment revenue
2019 $
2018 $
23
14
2019 $
2018 $
23
14
4. VOLUNTEER AND EMPLOYEE RELATED COSTS
Trustee Fees
20,175
8,825
Total Volunteer and employee related costs
20,175
8,825
2019 $
2018 $
5. COSTS RELATED TO PROVIDING GOODS OR SERVICES
Administration
58,780
41,928
Bank Fees & Charges
-
40
Charities Commission
51
51
Committee Expenses
1,740
1,195
Website & Branding
2,401
-
62,972
43,214
2019 $
2018 $
Total Costs related to providing goods or services
6. GRANTS AND DONATIONS
Tangihanga Koha
19,800
19,800
Sport, Art & Travel
14,821
13,930
Cultural
31,000
33,095
Kaumātua Assistance
42,276
22,820
Marae
15,000
57,650
8,000
-
Tertiary Full Time
Community
91,000
77,412
Secondary Yr 10 & Yr 11
14,250
15,250
High Performance Medical PHD Overseas Agriculture Post Graduate Balance Deloitte Grant
1,000
2,800
27,700
21,800
-
6,000
7,600
3,700
3,000
6,000
41,050
18,400
1,000
-
Grants - Returned/Recovered
(449)
(470)
Total Grants and Donations
317,048
298,187
77
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019 7. OTHER EXPENSES 2019 $
Audit Fees
2018 $
-
3,979
Depreciation
206
385
Total Other Expenses
206
4,364
8. PROPERTY, PLANT & EQUIPMENT Property, Plant & Equipment 2019
Office Equipment
Opening Carrying Amount $
Purchases/ Depreciation (Sales or & Disposals) Impairment $ $
Closing Carrying Amount $
GDPro Database Software
239
-
120
119
Filing Cabinet
258
-
34
224
52
-
26
26
HP Laptop case and configuration Microsoft Office and Remote User Networks
53
-
26
27
602
-
206
396
Total Property, Plant & Equipment
602
-
206
396
Property, Plant & Equipment 2018
Opening Carrying Amount $
Purchases/ Depreciation (Sales or & Disposals) Impairment $ $
Closing Carrying Amount $
Office Equipment GDPro Database Software
479
-
240
239
Filing Cabinet
297
-
39
258
HP Laptop case and configuration
105
-
53
52
Microsoft Office and Remote User Networks
Total Property, Plant & Equipment
106
-
53
53
987
-
385
602
987
-
385
602
9. TRUST CAPITAL
78
2019 $
2018 $
Trust Capital
100
100
Total Trust Capital
100
100
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019 10. ACCUMULATED FUNDS 2019 $
2018 $
Surplus / (Deficit) for the year
32,449
5,424
Total Accumulated Funds
38,164
5,715
Balance at beginning of the year
5,715
291
11. RELATED PARTY INFORMATION Related party matters arise with respect to Ātihau-Whanganui Incorporation ("AWHI") in that under the terms of the Trust Deed three appointed trustees are also members of the AWHI Committee of Management and the Incorporation is the settlor of the Trust. Annual grants are received from AWHI, and AWHI previously advanced unclaimed dividends to the Trust. During the year there were no services provided to the Trust by related parties. (2018: Nil). From time to time Trustees have and disclose interests in, or a relationship with individual applicants and/or grantee organisations and abstain from those decisions.
12. TRIBAL PURPOSES Ātihau-Whanganui Incorporation annually distribute funds to the Trust which is used to distribute for charitable purposes. During the year $432,827 was granted.
13. COMMITMENTS The trust has no commitments as at 30 June 2019, (2018 Nil).
14. CONTINGENT LIABILITIES AND GUARANTEES The trust has no contingent liabilities and no guarantees as at 30 June 2019. (2018: Contingent Liabilities Nil. Guarantees Nil.)
15. EVENTS OCCURRING AFTER BALANCE DATE There have been no significant events since balance date.
79
TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019
SILKS AUDIT Chartered Accountants Limited
PO Box Box 7144 7144 PO Whanganui 4541 4541 Whanganui New Zealand Zealand New T: (06) (06) 345 345 8539 8539 T: F: (06) (06) 345 345 2212 2212 F: ctown@silks.co.nz E: ctown@silks.co.nz www.silksaudit.co.nz www.silksaudit.co.nz
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ĀTIHAU-WHANGANUI INCORPORATION
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TE ĀTI HAU TRUST Opinion We have audited the financial statements of Ātihau Whanganui Incorporation (the Incorporation) on pages 38 to 57, which comprise the statement of financial position as at 30 June 2018, and the statement of comprehensive income, statement Report on the Audit of the Financial Statements of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. Opinion We have audited the financial statements of Te Ati Hau Charitable Trust (the Trust) on pages 71 to 79, which comprise the In our opinion, except for the possible effects of the matters described under the Basis for Opinion section, the accompanying statement of financial position as at 30 June 2019, and the statement of financial performance and statement of cash flows financial statements present fairly, in all material respects, the financial position of the Incorporation as at 30 June 2018, for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. and its financial performance and its cash flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Trust as at 30 June 2019, and its financial performance and its cash flows for the year then ended in accordance with Public Basis for Qualifi ed Opinion on Financial Position Benefit Entity Simple Format Reporting Standard (Not-For-Profit). As disclosed in the accounting policy on page 42– Accrual to the financial statements, the land and buildings are reported at the
latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial Basis for Standards Opinion – NZ IAS 16 Accounting for Property, Plant & Equipment, which, when the revaluation model is chosen Reporting We conducted our audit in accordance with International on Auditing (New at Zealand) (ISAs Our responsibilities for property, plant and equipment, require such assetsStandards to be stated at fair value the date of (NZ)). the revaluation less any under those accumulated standards are further described in the Auditor’s subsequent depreciation and impairment losses. Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Trust in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics we for were Assurance by the ZealandtoAuditing and Assurance Standards Board and the the Consequently, unablePractitioners to determineissued whether any New adjustment these amounts was necessary, which affects International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we gross carrying amount of land and buildings, their accumulated depreciation, depreciation expense, revaluation increases/ have fulfilledand ourshareholders' other ethical equity. responsibilities in accordance with these requirements and the IESBA Code. We believe that decreases the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities Other our capacity as auditor we have no relationship with, or interests in, the Trust. under than thoseinstandards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Other information Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the The TrusteesEthics is responsible behalfforofAccountants’ the Trust for Code the other information. The other information(IESBA comprises the Entity International StandardsonBoard of Ethics for Professional Accountants Code), and we information and Statement of service performance but does not include the financial statements and our auditor’s report have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that thereon. the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our opinion thecapacity financialas statements the other information and not express any form of assurance Other than inonour auditor wedoes havenot no cover relationship with, or interests in,we thedo Incorporation. conclusion thereon. Emphasis of Matter In our15audit of the financial statements, our responsibility is to read the otherofinformation and,Forestry. in doingThe so, Asconnection disclosed inwith note to the financial statements the incorporation undertook a valuation the Papahua consider information materially inconsistent with the financial statements knowledge obtained valuation whether excludedthe theother cost of the bridgeisconstruction which creates a material uncertainty as to or theour forest value. Due to this in the audit no or otherwise to made be materially misstated. If based, the work we have performed, we conclude that uncertainty adjustmentappears has been for the carrying value of the on Papahua Forestry partnership investment. We have there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in not modifi ed our opinion in respect of this matter. this regard.
Principals: Cameron Town, Talia Anderson-Town.
Whanganui Whanganui
58 80
Taranaki Taranaki
Manawatu Manawatu
Central Plateau Plateau
Auckland Auckland
SILKS AUDIT
PO Box Box 7144 7144 PO Whanganui 4541 4541 Whanganui New Zealand Zealand New
Chartered Accountants Limited
T: (06) (06) 345 345 8539 8539 T: F: (06) (06) 345 345 2212 2212 F: E: ctown@silks.co.nz ctown@silks.co.nz E: www.silksaudit.co.nz www.silksaudit.co.nz
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ĀTIHAU-WHANGANUI INCORPORATION
Trustees’ Responsibilities for the Financial Statements The Trustees are responsible on behalf of the Trust for the preparation and fair presentation of the financial statements in accordance with Public Benefit Entity Simple Format Reporting Standard – Accrual (Not-For-Profit), and for such internal Opinion control the directors determine is necessary to enable the preparation of financial statements on thatpages are free We haveasaudited the financial statements of Ātihau Whanganui Incorporation (the Incorporation) 38 from to 57,material which misstatement, whether due to fraudposition or error.as at 30 June 2018, and the statement of comprehensive income, statement comprise the statement of financial
of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including preparingofthe financial statements,policies. the Trustees are responsible on behalf of the Trust for assessing the Trust’s ability to aInsummary signifi cant accounting continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of our accounting unless for thethe Trustees either intend to matters liquidatedescribed the Trust under or to cease operations, or section, have no the realistic alternative In opinion, except possible effects of the the Basis for Opinion accompanying but to do so. financial statements present fairly, in all material respects, the financial position of the Incorporation as at 30 June 2018, and its financial performance and its cash flows for the year then ended in accordance with New Zealand equivalents to Auditors Responsibilities for the Audit of the Financial Statements International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR). Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance Basis for Qualifi ed Opinion on Financial Position is adisclosed high level of but ispolicy not aon guarantee an audit conducted in accordance with buildings ISAs (NZ)are will reported always detect As in assurance, the accounting page 42that to the financial statements, the land and at thea material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial or in the aggregate, reasonably befor expected toPlant influence the economic decisions users taken on the basis of Reporting Standardsthey – NZcould IAS 16 Accounting Property, & Equipment, which, when theofrevaluation model is chosen these financial statements. for property, plant and equipment, require such assets to be stated at fair value at the date of the revaluation less any
subsequent accumulated depreciation and impairment losses. A further description of the auditors responsibilities for the audit of the financial statements is located at the External Reporting Board’s website at: to determine whether any adjustment to these amounts was necessary, which affects the Consequently, we were unable http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-8/ gross carrying amount of land and buildings, their accumulated depreciation, depreciation expense, revaluation increases/ decreases and shareholders' equity. We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we Silksfulfi Audit have lled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that Chartered Accountants Ltd obtained is sufficient and appropriate to provide a basis for our opinion. the audit evidence we have Whanganui, New Zealand Date: 26 September 2019as auditor we have no relationship with, or interests in, the Incorporation. Other than in our capacity Emphasis of Matter As disclosed in note 15 to the financial statements the incorporation undertook a valuation of the Papahua Forestry. The valuation excluded the cost of the bridge construction which creates a material uncertainty as to the forest value. Due to this uncertainty no adjustment has been made for the carrying value of the Papahua Forestry partnership investment. We have not modified our opinion in respect of this matter.
Principals: Principals: Cameron Cameron Town, Town, Talia Talia Anderson-Town. Anderson-Town.
Whanganui Whanganui
58
Taranaki Taranaki
Manawatu Manawatu
Central Central Plateau Plateau
Auckland Auckland
81
GLOSSARY OF TERMS
Accounts Receivable: Money owed to AWHI from customers at year end, also known as Trade Debtors
Hogget: A young sheep between a lamb and a 2 tooth, from approx. 10 to 16 months of age
Accounts Payable: Money owed by AWHI to suppliers of goods or services at year end, also known as Trade Creditors
Interest: What AWHI needs to pay for the money it borrows from the bank
Accrued Income: Income earned by AWHI where cash has yet to be received
Meat Processing: Process of taking live animals, humanely slaughtering them and then breaking down into saleable beef or sheep meat
Accrued Expenses: Expenses incurred by AWHI where cash has yet to be paid Asset: Anything owned by AWHI to use in generating income
Milk Solids (MS): The valued solid components in milk – at present, milk-fat and protein, expressed as kg MS
Balance Date: Term used to describe the end of AWHI’s financial year - 30th June
Net Farm Income: Income earned from farm activities less the direct costs of these activities
Brassica: The plant family which includes turnips, swedes, rape, kale, cauliflower, cabbages, etc.
Net Operating Surplus / (Deficit): Difference between revenue and the costs incurred to earn this revenue.
Capital Stock: The breeding stock on AWHI farms that produce revenue or trading stock to generate income
Prime (livestock): Term used to describe animals that are ready for slaughter
Carbon Credits on Hand: Number of NZ units (NZU) owned at balance date under the NZ Emissions Trading Scheme valued at market value. An NZU = 1 tonne of carbon dioxide equivalent of emissions or removals. Carrying Capacity: Number of livestock a property can graze annually without importation of feed or the deterioration of the property Change in Livestock Numbers: Difference in livestock numbers at end of year compared to the beginning of the year at market values Cull: To remove animals from a breeding population generally because of physical or performance deficiencies Current Asset: An asset of AWHI that is expected to be converted into cash within the next year Current Liability: A liability of AWHI which is generally due to be settled within 12 months of balance date Depreciation: The apportionment of cost of an asset over the useful life of the asset. An accounting method used to reflect the aging and use of an asset Direct Farm Expenses: Expenses incurred by AWHI’s farming operations in generating farm income Drought: A long period of time during which there is very little or no rain Dry Matter: The plant material left after all water has been removed – using DM% comparisons can be made between different feeds such as pasture, swedes, grains, hay, etc. Employee Entitlements: Holiday pay and other leave entitlements owing to employees at balance date Equity: A measure of the shareholders’ total interest in AWHI – the amount by which the value of assets exceed the value of liabilities Feedlot: A third party location where AWHI’s cattle are fed a high protein diet over the winter months Fertility (of soil): Status of soil in terms of the amount of plant-available nutrients it can supply Finishing (livestock): The process of growing animals to a point they are considered ready for slaughter Fixed Asset: Assets held for use by AWHI rather than for sale or conversion into cash Genetics (livestock): Branch of biology concerned with trait inheritance from parents to offspring – important to use the right animals (male or female) to establish and continue AWHI’s breeding programme Greenfeed: Annual crops, usually cereals, grasses or brassicas, grown for animal feed Gross Revenue: What is earned by AWHI from selling goods and services Hectare (ha): A standard metric measurement of land, 1 ha = 10,000m2 = 2.471 acres Heifer: Term used to describe a young female cattle beast
82
Liability: General term for what AWHI owes
Provision for Dividend: Allowance for a Dividend distribution to AWHI shareholders Revaluation of Shares: Difference in the market value of shares that AWHI holds in other companies at this balance date compared to the previous year. Revaluation of Livestock: The livestock price movement being the livestock value at year end versus opening values less the amount attributed to change in livestock numbers Soil Moisture Deficit: Deficit between the actual amount of water in a soil versus its water holding capacity Statement of Cash-flow: Shows the cash movements for the year in Operating, Investing and Financing categories Statement of Financial Performance: Shows how well AWHI has performed in its trading activities. Statement of Movements in Equity: Reports the change in AWHI’s ownership interest in the year Statement of Financial Position: "A snapshot" in time that reflects where the money has come from (Equity + Liabilities) and how the money has been used (Assets) Stock on hand: Inventory of goods held for resale or for AWHI’s use, including livestock Stock Units: Livestock in NZ are commonly given a “stock unit” (su) value or measure. The basic unit (1 su) is one breeding ewe that weighs 55kgs; bears 1 lamb; and consumes approx. 550 kilograms of dry matter each year. A beef breeding cow is commonly given a value of 6 su. Stock units have a number of uses e.g. to determine how much feed is required; the stocking rate of a farm, etc. Store (livestock): A term used to describe animals destined for “finishing” that are sold off country, which does not have the potential to finish them, to specialist “finishing” operations on easier more productive country Supplements: Additional animal feed often in the form of conserved hay, silage fodder crops (greenfeeds and brassica crops) or concentrates such as grains or meals Term Liabilities: A liability of AWHI which is generally due to be settled more than 12 months after balance date Unclaimed Dividends Due – Te Āti Hau Trust: Funds relating to unclaimed dividends from the previous year which are advanced to Te Āti Hau Trust to invest Weaner: A young animal that has been weaned from its mother’s milk, capable of living completely on pasture Yield (carcass): Proportion of useable (saleable) meat from a carcass expressed as a percentage of total carcass weight Yield (fibre): Proportion of useable fibre present in a quantity of greasy wool expressed as a percentage
NOTES
83 83
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Toi tu te whenua
16 Bell Street, Whanganui 4500, New Zealand Postal Address PO Box 4035 Whanganui 4540 New Zealand