Independent review puts spotlight on annual reporting

Ātihau-Whanganui Incorporation has commissioned an independent review of annual reporting to understand what information shareholder whānau want to see.

Business advisor KPMG is carrying out the independent review, which has included workshops with shareholder whānau to find out what changes they would like to ensure information in the annual report is more accessible and meaningful.

KPMG consulting partner Kaapua Smith (Ngāti Apa, Ngāti Awa, Ngāti Porou) is leading the process and is due to report back to the Incorporation by the end of the financial year.

Annual reports are a comprehensive overview for shareholders of activities over the previous financial year. An annual report typically includes statements from the chief executive and the Board chair, and key information about financial performance.

Committee of Management member Keria Ponga says shareholders should question anything they’re uncertain about, but over a number of years it had become clear that there was “a disconnect” between the standardised reporting the Incorporation was adhering to and the insights and information shareholders were seeking.

The financial year ends in June. It is followed shortly after by the annual report with the Incorporation’s annual financial statements, including standard reporting measures such as statements of income, cashflow, equity and the balance sheet.

The annual report also includes nonfinancial performance information that details key achievements and progress against long-term objectives. It is intended to provide a transparent view for shareholders of the organisation’s work over the financial year.

The review was commissioned to understand what changes could be made to ensure the annual reporting includes what shareholders want to see in a report, including unpacking financial information and results in a useful way.

“It has always been our intention to take our shareholders with us. They are part of this, this is their journey,” Keria says.

“This independent review has been commissioned as part of the Committee of Management’s efforts to provide a transparent view for our shareholders and that includes ensuring our annual reporting is comprehensive, understandable and includes the level of detail our whānau want to see.

Above and below images: A workshop with shareholder whānau to discover what information and reporting they would like to see.

“It will ensure we do better with our annual reporting and that it is user friendly.”

An example was reporting on debt.

“Positive debt is connected to growth but quite often there’s concern around debt levels. Understanding the financials and what those numbers mean, how debt works and highlighting what calculated risk looks like is very important to our shareholders.”

Keria says a lot of work is done to produce shareholder-focused reporting that meets shareholder needs and expectations.

“Whether it’s the story of our 50 year celebration or an annual story, a lot is happening in the background to try to tell that story better.

“We’ve put up infometrics, we have a magazine to help tell our story, and our shareholders tell us those things are good to have. But we have to work harder through the Annual Report to let people understand what the figures mean and why we make the decisions we make.

“I love the fact that we’re doing this. My goal is that every single shareholder and beneficiary knows they are part of this, that this is their legacy, that they can ask what this legacy looks like and that we can give them an honest answer that they understand.”

Chief Executive Andrew Beijeman says KPMG has run two workshops on annual reporting with shareholders – the first in person and second online.

“Involving our shareholders in an open process is a way to get good results,” Andrew says.

“Kaapua Smith says it has been good to have shareholder engagement and there’s been great contribution and feedback, with a broad diversity of views.”

Shareholders are likely to see any changes resulting from the review implemented in the 2023 annual report, although some might be incorporated as early as this year.