Annual Report 2019
He Tangata He Whenua He Oranga Sustaining and Growing our People through Prosperity
PKW Whare central skylight - embraces the memory of our tĹŤpuna, names of original owners of PKW.
OUR STORY Parininihi ki Waitotara is on a mission to grow and sustain our people, to create meaningful opportunity for them, their whānau and the generations to come. We are an intergenerational business with the impetus and determination to continue the legacy of our tūpuna and take control of our own destiny. Our core values of Katiakitanga, Manaakitanga, Whakapono, Whanaungatanga and Kotahitanga are principles and values set down by our shareholders – they provide us with the path we follow towards our vision of He Tangata, He Whenua, He Oranga. As Taranaki Māori, our strength lies in ourselves, our connection to the whenua and our determination to build opportunity while staying true to our kaupapa.
We are focused on achieving our long term goals and aspirations through a diversification strategy that promotes innovation and co-operation to deliver sustainable returns. Our whenua is the foundation on which we build the capacity and capabilities of our people and develop our economic strength. We are also proud to stand in the role of kaitiaki of this land, sustaining it for current and future generations . Each year, our annual report provides another chapter in our story, a contribution to the continuing legacy of determination, of resilience, and the knowledge of who we are and what we mean to become.
Bev Gibson and Mahuri Tipene (Kuia) at farm naming ceremony - PKW Farm Te Kahu, OhÄ ngai Hawera.
OUR KAUPAPA The ambition of our kaumātua to build Parininihi ki Waitotara into an organisation dedicated to fulfilling the aspirations of our ancestors is being realised.
OUR VALUES REFLECT
We recognise we have a duty to manage our lands and assets not just for our generation but for those that follow us.
• Kaitiakitanga Commitment to leadership
OUR VISION He Tangata, He Whenua, He Oranga – Sustaining and Growing our People through Prosperity. OUR MISSION A successfully diversified and sustainable Taranaki Māori-owned and operated business providing meaningful opportunity to its people.
• Manaakitanga Care for our present and future generations
• Whakapono Adherence to our tikanga and belief in our future • Whanaungatanga / Kotahitanga Belief in collective action with trusted relationships
Tahu Rawiri and Ron Puata at PKW Half Yearly Hui, Kairau Marae.
CONTENTS PARININIHI KI WAITOTARA INCORPORATION Chair report
8
Chief Executive Officer report
12
PKW Group Entities
18
Committee of Management
19
Executive Leadership Team
23
Capturing our core values
24
Te Ara Putanga - Our Outcomes Pathway
26
PKW Long Term Outcomes - Annual Results
29
PARININIHI KI WAITOTARA INCORPORATION ANNUAL FINANCIAL STATEMENTS Contents
43
Auditor report
44
Committee’s annual report
47
Statement of comprehensive income
48
Statement of financial position
49
Statement of changes in equity
50
Statement of cash flows
51
Notes to the financial statements
52
PARININIHI KI WAITOTARA TRUST Chair report
80
Partnerships Provide Opportunity
84
Ngā Kaiwhiwhi Tautoko. Scholarships and Grants
86
PARININIHI KI WAITOTARA TRUST ANNUAL FINANCIAL STATEMENTS Contents
95
Auditor report
96
Entity information
99
Statement of service performance
100
Statement of financial performance
101
Statement of financial position
102
Statement of cash flows
103
Statement of accounting policies
104
Notes to the performance report
105
Cover: Meremere Marae whānau have been instrumental in the naming of two PKW Farms, graciously gifting names that serve to remind us, and our future generations, of who we are. This annual report provides an evolution in our reporting to reflect our contributions to the wider kaupapa and intergenerational goals of our people. Our cover photo also demonstrates that shift, providing the beautiful image of multiple generations of our Meremere Marae whānau (clockwise from back), Steven Katene holding his moko, Tytan Moseley, Mahuri Tipene (Kuia) and Hunta Ngatai-Northcott (moko).
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PARININIHI KI WAITOTARA INCORPORATION
TE PŪRONGO A TE HEAMANA HINERANGI RAUMATI-TU'UA
Mā te tangata ka ora ai te whenua Mā te whenua ka ora ai te tangata Hāpaitia rawatia ngā kupu arahi He Tangata, He Whenua, He Oranga Ko ngā mate e pīkau nei Ka mihia, ka tangihia, ka poroporoakitia Tuia ngā wawata, ngā moemoeā Herea ki ngā uaratanga kia tutuki, kia oti, kia eke Eke panuku, eke Tangaroa Whano, whano, haramai te toki, haumi ē, hui ē, tāiki ē!
Hei Heamana o te Kōmiti Whakahaere mō te Kōporeihana mō Parininihi ki Waitotara, ā, hei māngai mā rātou hoki, ka hari koa ahau ki te hora i te pūrongo ā-tau mō te whakahaerenga mō te tau pūtea ka tīmata i te 1 o Hōngongoi 2018, ā, ka mutu i te 30 o Pipiri 2019. I te tau kua pahure ake nei, kua ū tō mātou arotahi ki te ara rautaki kua whakatakotohia e mātou kia whakarato i ō tātou wawata mō tā tātou pakihi, ō mātou kaiwhaipānga, mō tō tātou whānau o Taranaki hoki - He Tangata, He Whenua, He Oranga. Ka whakatauritea tēnā, tēnā whakatau o te Poari ki ō tātou uara kia whakaū ai ka pūmau mātou ki a mātou anō hei Kōporeihana i tā mātou rato angitu ki ō tātou tāngata. He mea hiranga kia whakarato mātou, engari ko te tikanga ka whāia e mātou hoki. RAUTAKI Ka whakarato mai ā mātou rautaki matua i te tūāpapa kaha, pakari
hoki ka taea e tā tātou pakihi te tipu, te ahu whakamua hoki. I tēnei tau, kua kitea tā mātou ahu whakamua mā te whakatinana i tō mātou rautaki rerenga kē, tae ana ki ētehi whanonga hou me ētehi angitu kua tautohua, kua tūhuratia hoki. Me manawanui i a tātou e tatari ana kia kitea nga hua ka puta, me te hiahia ka whakaaturia mai e te pūrongo o tērā tau ngā hua o ā tātou mahi. He mea waiwai ki te angitu me te tōnuitanga te whakaaro rautaki me te mārama i ngā whāinga pakihi, engari tē taea te whakatutuki nei kore he tīma me ōna tāngata pūkenga, arotahi, hīkaka hoki kia whakatinana o aua āhuatanga. Ka mutu te tau, ā, he rite tonu ngā mema o te Tīra Mana Whakahaere, he tohu hoki tēnei o te mahi ngātahi kua puāwaitia i waenga i tēnei rōpū tāngata whai pūkenga. I ia rā ka arotahi rātou ki te mahi me ngā hiahia mārama i a rātou, i tō rātou tīma, me te whānau whānui o PKW. Kua poho kēreru
mātou te hinonga, nā tā rātou āhei hangarau, mōhiotanga, āheinga hoki i tā tātou kaupapa ahurea me ngā hononga kua hangaia e rātou ki te hapori whānui mā mātou. Koinei te tau tuatoru kua ārahina te tīma e tō tātou Tumu Whakarae, e Warwick Tauwhare-George, ā, kua tūturutia e āna otinga i taua wā he mea hiranga kia eke te tangata tika ki te tūranga tika i te wā tika. Mai i te tīmatanga, mai i te aroākapa, kua kōkirihia e Warwick te huringa i tonoa e mātou. Nāna te matea matua o te rerenga kē i āhukahuka, i whakatairanga, ā, nāna te mahi nui ki te whakatakoto tūāpapa, ki te tautohu angitu hoki i hiahiatia ai e mātou kia whakatū i te rautaki. He whakangao hira kua whakatūria, heoti anō he tino mīharo tō Warwick āhei, kaha hoki, ārahitanga hoki i whakaū ai te hoko mai i New Plymouth Novotel mā te rāngai whakataunga ngātahi
a PKW, Te Atiawa Iwi Holdings (TAIH), Taranaki Iwi Holdings (TIH) hoki. E whakaputaina ana e ia taua kaikaha ki te whakangao tēnā pea ka waihangahia ki te whare tiaki pahake ki tō PKW whenua ki Puketapu (Bell Block), ā, e hiahia ana mātou kia kite i te ahunga whakamua ki reira. Hei Heamana, kua tino whakahīhī, hari koa hoki i te whakatutukinga o te anga Rautaki Kaitiakitanga, ka mārama te hora i ō tātou takohanga, whāinga hoki kua whakaaeita, ā, ka whakaāhei i a mātou te tū hei kaiārahi pakihi toitū ā-taiao ka tahi, ka rua hei kaitiaki whai hua o te whenua mō ngā reanga o te āpōpō. Ko te mahi tuatahi, hei te wā iti e oti ai, ko te whakatau i tētehi taumata mōkito mō ō tātou awa, manga hoki mā te whakaoti i tētahi mahi āta tirotiro, aroturuki. Nā te rautaki e āhei ai mātou
HE $257.3 MIRIONA TE UARATANGA TAPEKE KAIWHAIPĀNGA
te tūāpā i te honohono anō i Tūwhakaehu, arā tētehi o ngā hapū o Ngāti Ruanui, ki te whenua, mā te tapa ingoa anō ki ētehi o ō tātou pāmu e rua. He nui noa atu a Te Kāhu, a Te Ruru hoki i te ingoa noa iho - he tohu ēnei o te waihanga anō i te hononga i motuhia i te tau 1860, arā, he mana, he whakahī, he tohu mō te āpōpō anō hoki. Ka haere tonu tā mātou whakawhiti i ngā nama ā-pāmu hei ingoa ka whirihia, ka tukuna mai e te iwi, hapū hoki o te rohe, haere tahi tonu ai tātou i te ara o te kotahitanga, o te manaakitanga hoki.
HE TANGATA
" He mea waiwai ki te angitu me te tōnuitanga te whakaaro rautaki me te mārama i ngā whāinga pakihi, engari tē taea te whakatutuki nei kore he tīma me ōna tāngata pūkenga, arotahi, hīkaka hoki kia whakatinana o aua āhuatanga."
PARININIHI KI WAITOTARA INCORPORATION - TE PŪRONGO A TE HEAMANA
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MANA ĀRAHI I tohua te mutunga o te wāhanga tuatahi o tō tātou hātepe arotake e te whakatūnga o tā tātou tauira hou mō te mana ārahi i te 1 o Kohitātea. Kua huri te anga o tō tātou poari PKW Farms LP e whakaāhei ai te whakapaitia kia arotahi ki te eke
Mauī: Ko Timoko Davis rāua ko Boy Campbell i te tāinga o te ingoa pāmu - ko Te Kāhu Pāmu, ki Ohāngai, i Te Hāwera. Matau: He Whakangao Hou - ki tō Hōtēra Novotel Taupaepae.
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"Kua ngākau titikaha mātou ka tutuki tō tātou whāinga nā te whakahuihui i ngā tāngata he pūkenga, he wheako ō rātou ki te tēpu kia whiri whakaaro arotahi, rautaki whai mōhiohio hoki..."
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ki te taumata toa whakaihu waka o te ahumahi pāmu kai. Mā te uru mai ki te Poari o ētehi kaitohutohu motuhake tokorua te rite tonutanga te whakatau mai, ā, ka whakaū ka wātea mai ngā momo pūkenga e hiahiatia ana. Ka whakaotia te poari PKW Farms ki ngā mema tokorua kua kōwhirihia i te kōmiti mana ārahi (CoM) nā ngā momo pūkenga ka tāpeatia e rāua. I tae atu ki te Poari hou ka ārahia ai e Richard Krogh hei heamana rātou ko Phillip Luscombe te ringatohu motuhake, me ngā mema Poari, arā, ko Taaringaroa Nicholas rāua ko Claire Nicholson, he Reta Rārangi Hiahia mai i te kōmiti mana ārahi. Ka whakamōhiotia ki te reta ngā mahi e hiahia ana tātou te Kōporeihana kia whakatutukitia e rātou, otirā, he mea hira ake pea te whakamōhio atu i te ara hei whāinga mā rātou ki te whakatutuki hiahia. Tae mai ki tēnei wā, e pai ana te haere o tēnei tauira hou, ā, e hiahia ana mātou ki te kite i te ahunga whakamua o tēnei āhuatanga o tā tātou pakihi hei ngā marama e tū mai ana. Ka whāia tēnei tauira mō te kōmiti tuarua o PKW Investment me ōna mema motuhake tokorua ka hīkina te taumata mātanga ki te tēpu. Kātahi tātou ka ahu whakamua ki te wāhanga tuatoru o te hātepe arotake mā te tirotiro ki te hanganga o te PKW Trust Board. Nā te arotake kua whai angitu tātou ki te puta mō tētehi wā, āta tirohia ai e āwhina ana rānei e whakararu rānei ā tātou hanganga mana ārahi i ō tātou hiahia mō tā tātou pakihi. Mā te whakahuihui ki te tēpu ngā
tāngata he pūkenga, he wheako ō rātou kia whiri whakaaro arotahi, rautaki whai mōhiohio hoki, kua ngākau titikaha mātou ka tutuki tō tātou whāinga kia tū tētahi pakihi angitu rerenga kē, toitū hoki, nā ngāi Māori o Taranaki, ka whakahaerehia e ngāi Māori o Taranaki hoki, ka whakarato whai angitu mō ō tātou tāngata.
Fonterra me te whenua kāore anō kia whakapaingia ake.
PUTANGA Ā-TAU
IMai rā anō he mea waiwai te mahi tahi a tā tātou tīma ārahitanga, a ō tātou hoa rangapū pakihi, a ō tātou kaimahi hoki, ā, mō te kōmiti mana ārahi, ka mihi tēnei ki a rātou. Nā koutou katoa ngā whakatutukitanga o PKW hei Kōporeihana.
I tēnei tau kua rerekē te whakaatu i ā tātou otinga ā-tau nā te mea kua whakawhānuitia e tātou te tikanga o tēnei mea te angitu. I tēnei wā ka whakaaturia ā tātou putanga pae tawhiti, ka aromātaitia, ka kautehia e te Kaupapa Evaluation Tool, arā, ko te KET, ka hāngai ki ō tātou uara matua. Koinei te kohinga KET tatau ngahuru tuatahi nō reira, ka tū ēnei hei taumata mō te ahunga whakamua haere ake nei. I tēnei wā kei te whakaaturia mai ngā putanga rautaki e arotahi nei tātou. E whakarato ana ā tātou Rautaki Rerenga Kē, Kaitiakitanga, Kaitaonga hoki me ngā tatau ngahuru pakari mō te whakahaere nama, mō te whakahaere tūraru, mō te tautoko i te pakihi Māori, mō te whakauka me te āhuka i ā tātou taonga tuku iho ā-ahurea, mō ō tātou kawenga taiao, tiaki kararehe hoki. Heoi anō, he mea hīranga te tapeke hoki. I tā a PKW ki te mauhanga tōna $15.1 miriona huamoni i muri i te tāke (TP17/18 $5.6 miriona). Tae ana tēnei tatau ki tōna $8.7 miriona huamoni whakahaere (TP17/18 $6.7) me te nuinga o tērā he nekehanga o te uaratanga tautika mō ngā hea
I tēnei tau, tōna $257.3 miriona te uaratanga tapeke o ngā kaiwhaipānga nō reira ko tā te Poari marohi kia $1.45 te pūtea tuku mō ia hea ka tukuna. HE MIHI
Ka mihi hoki au ki a Hinerangi Edwards tonu, ka wehe atu nei mutu noa e hia kē ngā tau e pukumahi ana, e tōmau ana. He nui hoki tōna tāpaetanga ki te pakihi. Nā tōna ārahitanga hei Heamana o PKW Trust, i whakawhānui te Trust kia āhei te tokomaha atu o ngāi Māori o Taranaki te whai i ō rātou wawata mātauranga, te tāpae angitu, te tautoko kaupapa hapori, rōpū hapori anō hoki. Ko te tūmanako ia, kia whai hua āna whāinga kē ā te wāheke. Tēnā, hei whakakapinga māku, ka mihi au ki ō tātou kaiwhaipānga, mō tā rātou tautoko tonu mai, manaaki tonu mai hoki.
Mauri Ora Hinerangi Raumati-Tu’ua Heamana
HE TANGATAHE PARININIHI TANGATA KI PARININIHI WAITOTARA KI WAITOTARA INCORPORATION INCORPORATION - TE PŪRONGO - CHAIR'S A TE HEAMANA REPORT
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PARININIHI KI WAITOTARA INCORPORATION
CHAIR'S REPORT HINERANGI RAUMATI-TU'UA
Mā te tangata ka ora ai te whenua Mā te whenua ka ora ai te tangata Hāpaitia rawatia ngā kupu arahi He Tangata, He Whenua, He Oranga Ko ngā mate e pīkau nei Ka mihia, ka tangihia, ka poroporoakitia Tuia ngā wawata, ngā moemoeā Herea ki ngā uaratanga kia tutuki, kia oti, kia eke Eke panuku, eke Tangaroa Whano, whano, haramai te toki, haumi ē, hui ē, tāiki ē!
As Chair of the Committee of Management for Parininihi ki Waitotara Incorporation, and on their behalf, I am pleased to present the annual report on performance for the financial year beginning 1 July 2018 and ended 30 June 2019. This past year has seen us maintain our focus on the strategic pathway we set down to deliver our aspirations for our business, our shareholders and for our Taranaki whānau - He Tangata, He Whenua, He Oranga. Every decision we make as a Board is held up against our values to ensure we remain true to ourselves as an Incorporation in the way we bring meaningful opportunity to our people. It is important not only that we deliver, but also the manner in which we do it. STRATEGY Our core strategies provide us with a stable and robust platform on which our business can build and progress. This
year has seen us move forward in the implementation of our diversification strategy, with new investments being made and potential opportunities being identified and explored. Patience is required as we wait to see what returns will be realised, with expectation that next year’s financial report will show us the reward for our mahi. Having a strategic vision and clear business intentions is essential for success and prosperity, but nothing can be achieved without a team of people with the skills, focus and drive to implement them. We finish the year with the same Executive Leadership Team members we started with, a testament to the synergies that have formed among this talented group of people. They bring a daily focus on performance and clear expectations of themselves, their team and the wider PKW whānau. As an organisation, we
are proud of their technical ability, their knowledge and competence in our cultural kaupapa and the relationships they have built with the wider community on our behalf.
collective agreement partnership between PKW, Te Atiawa Iwi Holdings (TAIH) and Taranaki Iwi Holdings (TIH) were particularly notable.
This is the third year our CEO, Warwick Tauwhare-George, has led the team and his achievements during that time reiterate the importance of having the right person in the right role at the right time.
He is bringing the same dynamism to the potential aged-care facility investment opportunity on PKWowned land in Bell Block and we look forward to seeing progress being made there.
Right from the first, Warwick has driven the change we asked for from the front. He recognised and championed the essential need for diversification and played a central role in laying the foundations and identifying the opportunities we needed to put the strategy into place.
As Chair, I am especially proud and pleased with the completion of the Kaitiakitanga Strategy framework, which clearly lays down our accepted responsibilities and aims that will not only enable us to be an environmentally sustainable business leader, but also an effective guardian of the whenua for generations to come.
There have been some notable investments made, but Warwick’s initiative, energy and leadership in securing the purchase of New Plymouth’s Novotel through a
The first step, to create a biodiversity baseline for our rivers and streams by completing a comprehensive monitoring phase, is being made very soon.
$257.3
MILLION SHAREHOLDER NET EQUITY
The strategy has also enabled us to facilitate the reconnection of the Tūwhakaehu, hapū of Ngāti Ruanui, with the whenua via the renaming of two of our farms. Te Kāhu and Te Ruru stand for so much more than just a name they represent the rebuilding of a relationship that was severed in 1860, a sense of mana and pride, and a beacon for the future. We will continue to replace our farm numbers with names chosen and gifted by local iwi and hapū as we continue on this journey of kotahitanga and manaakitanga together.
HE TANGATA
" Having a strategic vision and clear business intentions is essential for success and prosperity, but nothing can be achieved without a team of people with the skills, focus and drive to implement them."
PARININIHI KI WAITOTARA INCORPORATION - CHAIR'S REPORT
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GOVERNANCE The implementation of our new governance model on January 1 signalled the end of the first phase in our review process. Our PKW Farms LP Board experienced a change in board structure that will enable it to be better suited to focus on being
Left: Timoko Davis and Boy Campbell at Farm Naming Ceremony - PKW Farm Te Kahu, Ohāngai, Hāwera. Right: New Investment - Novotel Hotel Reception.
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"By putting people with the skills and experience to make focused and informed strategic decisions around the table, we are confident of achieving our mission..."
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best in class for dairy farming. The introduction of two independent directors to the Board will bring consistency while ensuring the required skillsets are available. Two elected members from the CoM, again based on the skillset they offer complete the PKW Farms board. The new Board, chaired by Richard Krogh along with independent director Phillip Luscombe and Board members Taaringaroa Nicholas and Claire Nicholson, received a Letter of Expectation from the CoM outlining not only what we as an Incorporation want them to achieve but also, and perhaps more importantly, how we want them to achieve. So far this new model is working very well and we look forward to watching the progress of this part of our business over the coming months. The same model is to be adopted for the PKW Investment subcommittee with two independent members to deepen the level of expertise at the table. We will then move forward with the third phase of the review process by looking at the PKW Trust Board structure. The review has given us the opportunity to step back and check that our governance structures are helping, not hindering, the aspirations we have for our business. By putting people with the skills and experience to make focused
and informed strategic decisions around the table, we are confident of achieving our mission of a successfully diversified and sustainable Taranaki Māori owned and operated business providing meaningful opportunity for our people. ANNUAL OUTCOMES This year sees a shift in the way we present our annual results as we widen our definition of success. We will now be presenting our long-term outcomes, assessed and quantified by the Kaupapa Evaluation Tool (KET), which are aligned with our core values. As this is the first set of KET metric scores, they will act as a benchmark for future progress. What they tell us now is that we are seeing the strategic outcomes we have been focusing on. Our Diversification, Kaitiakitanga and Procurement Strategies are delivering, with strong metric scores for debt management, risk management, supporting Māori business, the preservation and recognition of our cultural heritage and our environmental and animal welfare responsibilities. But the bottom line is important too. PKW recorded an after tax profit of $15.1m ( FY17/18 $5.6m). This figure consists of an operating profit of $8.7m (FY17/18 $6.7m) and non-cash capital gains of $6.4m (FY17/18 loss $1.2m) consisting primarily of movements in the fair value for Fonterra shares and unimproved land.
The year has provided for a shareholder net equity of $257.3m and the Board therefore recommends a $1.45 per share dividend distribution. ACKNOWLEDGEMENTS As always, the mahi tahi of our leadership team, our business partners and our staff members is the vital component in everything we do and on behalf of the Committee of Management, I would like to thank them. The achievements of PKW as an Incorporation belong to you all. I would also like to make a special mention of Hinerangi Edwards, who is leaving us after many years of diligent and loyal service. The contribution she has made to the business is considerable. Her leadership as Chair of the PKW Trust has seen it grow in scope, enabling more Taranaki Māori to aim for the stars in terms of their educational aspirations as well as providing opportunities and support to community groups and organisations. We wish her well in her future endeavours. And, finally, I thank our shareholders for their continued support and manaaki.
Mauri Ora Hinerangi Raumati-Tu’ua Chair
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TERM LIABILITIES $'000
$68,839
2014/15
$67,189
2015/16
$68,787
2016/17
$65,433
2017/18 2018/19
$51,360
Decrease in debt levels due to a repayment made during the year as a result of surplus working capital. The total term debt to assets ratio is 16.3%.
TOTAL ASSETS $'000
2015/16
$276,994
HE TANGATA
2014/15
$279,040 $316,707
2016/17
$321,660
2017/18
$316,032
2018/19
Decrease due to various asset divestments and a continued decline in the value of Fonterra shares, oï¬&#x20AC;set by the investment in Ngamotu Hotel LP.
TOTAL EQUITY $'000 2014/15 2015/16 2016/17 2017/18 2018/19
PARININIHI KI WAITOTARA INCORPORATION - CHAIR'S REPORT
BALANCE SHEET HIGHLIGHTS
$202,907 $204,327 $240,022 $247,176 $257,267
Shareholders Equity has increased consistently year on year, from $202.9m in 2015 to $257.3m in 2019, representing a total growth of 26.8% over 5 years.
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PARININIHI KI WAITOTARA INCORPORATION
TE PŪRONGO A TE TUMU WHAKARAE WARWICK TAUWHARE-GEORGE
Taiāwhiowhio ana te rere o te hauora o ngā tūpuna. Toitū te tangata, toitū te whenua, poupoua te oranga, mai Parininihi kei raro, ki Waitotara kei runga. Tēnā koutou, tēnā koutou, tēnā tātou katoa.
Kua pārekareka au ki te hora i te pūrongo ā-tau mō te tau pūtea ka mutu i te 30 o Pipiri 2019 mō te tīma mana whakahaere mō te Kōporeihana o Parininihi ki Waitotara.
whakaaturia ō tātou uara ahurea, ō tātou kawenga taiao, tō tātou whakaaro nui ki te tiaki me te toiora o ā tātou kararehe, me te rato angitu ki ō tātou whānau kia tū rangatira ai rātou.
Kua whakaihiihia tātou katoa i tēnei tau, ā, kua puta ngā hua o te pukumahi i a tātou e whakatū tonu ana i tā tātou rautaki rerenga kē.
Ka whakaaturia mai tētahi paerewa e ngā tatau putanga KET pae tawhiti o tēnei tau. Ka āhei tātou te tā ahunga whakamua ki tēnei paerewa hei ngā tau e tū mai ana, ā, ka ratoa mai he rāpopototanga hoki mō tā tātou āhua i tēnei wā. Ki tāku e tū tiketike ana tātou.
Mai rā anō he mea hiranga te mana o ō tātou uara matua, arā, ko te Manaakitanga, te Kaitiakitanga, te Whakapono, te Kotahitanga, me te Whanaungatanga ki ā tātou tikanga whakatau, tikanga pakihi, tikanga tautoko i ngāi Māori o Taranaki, ā, i tēnei wā kua piki tō mātou mārama ki te pai o tā tātou mahi i ēnei āhuatanga mai i te whanaketanga o te Kaupapa Evaluation Tool (arā, ko te KET). Kua āhei te kaute me te ine i ēnei āria, nā reira e āhei ana mātou te whakawhānui i tō tātou pae angitu, tae ana ki ngā mea hiranga katoa, kaua ko te tapeke pūtea noa iho. Ahakoa he arotahi matua mō ngā mema o tō tātou tīma ko te rato i ngā putanga whakangao e hiahia ana ō tātou kaiwhaipānga, kei te
He nui ngā take whakanui i roto i ngā otinga nei, ā, me whai āhei tātou kia mahi pēra. Ka whakaatu mai ngā otinga i ngā āhuatanga ka āhei tātou te whakapai ake, te tupu hei hinonga, ā, ka titiro whakamua tātou ā-tīma nei kia iti nei, iti nei te whakatū i ngā whakarerekētanga e matea ana i a tātou e whai ana i te ara kua whakatakotoria e tātou mā tātou tonu. AHUMONI Mō te tau pūtea 18/19, he $15.1 miriona te huamoni tapeke i muri i te tāke, ā, he $10.1 miriona te moni whiwhi tapeke whānui i maungia mō te tau.
Ko te piki o te otinga i ō tērā tau (he $5.6 miriona huamoni tapeke i muri i te tāke mō te TP 17/18, arā, ko te tau pūtea 17/18) nā te moni whiwhi ā-rōpū pai i puta i ngā āhuatanga tāpua e rua; • Nā te pai haere o te huarere i matomato ai te tupu o te karaihe, ā, i piki te nui o te mīraka, me te pūtea i puta, arā, he 2,197m kgMS (PY: 2,465m kgMS) ahakoa i whakatauritea tētehi wāhanga o tēnei e te utu mīraka iti ake - he $6.35 (PY: $6.75). Ka whakamāmātia anōtia tēnei iti haere o te utu miraka e te whakauru i ngā kirimana wāheke utu miraka i āraihia te 50% o te putanga ki te $6.46. • Ka puta te whakatau kia tata ki te 8% te nui haere o ngā wāriu rīhi Annual Catch Entitlement (ACE) i ā tērā tau nā te pikinga o te utu mākete mō te kōura. Āpiti atu i tērā, i whakapiki ake te Manatū Ahu Matua (arā, ko te Ministry of
Primary Industry/MPI) i te nui o ACE i te takiwā o te 2,267kgs. • I memehatia ēnei e te kore moni whiwhi ka tae mai i Fonterra (i tērā tau ka tata ki te $0.95m.). $0.95m). Ka whakaatu te pikinga whānui puta noa i te PKW Group i te iti haere o te wāriu o ngā hea Fonterra i tōna $1.59 ia hea, i ngā nama ka hāngai ki ētehi whare wātea me te hoko atu i ētehi pāmu herekore, i ētehi pāmu rīhi rautaki kore rānei, i te piki o te wāriu poraka ngāhere o Mangaoapa, he pikinga tapeke o te kohinga whakangao rawa (tae ana ki whenua taiwhenua, ki whenua arumoni hoki), me te nui haere i te wāriu o te kohinga whenua. I rite tonu te whakapaunga ā-rōpū i ō tērā tau i tōna $17.3 miriona (TP 17/18 $7.2 miriona). ka whakaatu i te arotahi haere tonu o te tīma ki te aroturuki i ngā utu puta noa i te
HE $15.1 MIRIONA
HUAMONI I MURI I TE TĀKE
Rōpū, ina koa i roto i PKW Farms LP. He pai ngā moni whiwhi i ngā kaupapa mahi tahi hoki ki te tau kua pahure i $2.3 miriona (TP17/18 $1.8 miriona) ka whakaatu i te mahi tōrunga haere tonu a Port Nicholson Fisheries and Faciilties (PNF) me te whakauru o Ngāmotu Hotels ki ngā puka. NGĀ PUTANGA PAE TAWHITI O KET Ka kitea te roanga o ngā otinga ngahuru KET me ngā rāpopototanga ki roto i tēnei pūrongo, ki raro nei, engari anei ētehi kōrero e hiahia ana au kia tīpakohia.
HE TANGATA
"He maha ngā hua hei whakanuitanga mā tātou, ā, me whakanui e tātou, ka tika."
PARININIHI KI WAITOTARA INCORPORATION - TE PŪRONGO A TE TUMU WHAKARAE
TR13
Manaakitanga He pakari tā tātou tūranga whakamahi haupū rawa nā te whakahaere tūraru, nā te whakaheke kawenga nama hoki i tōna $12 miriona hei tautoko i ō
Mauī: Te Whānau Kaiwhaipānga o PKW i Te Ruru Pāmu, he pāmu nā PKW, ki Ohāngai, Te Hāwera. Matau: He whakangaotanga ki Port Nicholson Fisheries LP.
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TR14
" He mea hira ki ō tātou kaiwhaipānga tā tātou mahi hei kaitiaki o tō tātou whenua, ā, he mea pārekareka ngā tatau ine pai i roto i tēnei kaupapa."
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tātou wawata rerenga kē, hei whai angitu inā puta mai ai hoki. Kei te taumata mōkito i whakaaetia ai e mātou te whakahaere utu i tēnei wā, ā, nā tērā e hunaia ana te arotahi, te pukumahi me te ū i āwhinatia ai te waihanga i te pakihi PKW Farms kia moumou kore ai, kia nui ake ai te whai hua hoki. He nui tā tātou whakangao ki ō tātou pāmu i ngā tau e toru kua taha ake nei kia kōkirihia ai te huringa i matea ai, ā, kua tīmata te hura i ngā otinga. Kua tīmata tā tātou rautaki kohikohiki ki te rato i ētehi otinga ā-ringa, ā, kua huri ō mātou whakaaro ki ō tātou kaiwhakarato me tēnei mea te whakawhiwhitanga. Ka whai painga kaua ko PKW anake, engari te ōhanga o Taranaki nui tonu nā te whakatū hononga māia ki ngā kaiwhakarato e tino hiahia ana ki te tūhura i te aronga tāpiri uara. Kua roa nei mātou e tū ana hei pou whakawhirinaki arumoni mō te rohe, ā, ka haere tonu tēnei mah. Kaitiakitanga He mea hira ki ō tātou kaiwhaipānga tā tātou mahi hei
kaitiaki o tō tātou whenua, ā, he mea pārekareka ngā tatau ine pai i roto i tēnei kaupapa. I tēnei tau i whakarewahia te kaupapa tuatahi e kōkirihia ana e tā tātou Rautaki Kaitiakitanga, arā, kua tīmatahia te tirotiro ā-taiao i ō tātou awa. Mā te hāpai i te aronga pūtaiao me te aronga mātauranga Māori ki te whakamātau i te houra o te arawai, o ngā kararehe, tupu hoki ka whirinaki ki ngā arawai e āta tautohua te whai hua o te mahi kua oti kē i a mātou, ā, he aha ētehi atu mahi hei mahi kia whakaū ai ka kaha, ka ngotongoto hoki te mauri o ngā ara wai. Whakapono Hei Koporeihana Māori, ka mahi, ā, ka āwhina hoki mātou i ngā kaiwhaipānga katoa ka heke i ngā kāwai whakapapa o ngāi Māori o Taranaki, i ō rātou iwi, hapū, whānau, uri hoki. He wero tēnei ki PKW ina aro atu ai tātou ki te whakawhanake i tō tātou arotahi i tēnei āhuatanga me te pātai ki a tātou anō me pēhea tātou e whakatairanga i te kitenga me te mana o tō tātou ahurea, me aha tātou kia whakaū i ngā
hononga i waenga i te whenua me ō tātou kaiwhaipānga, ā, me pēhea e pai rawa atu ai te whakamōhio i tā tātou kōrero. He haerenga whai mārama tēnei i a tātou e aro ana ki te hanga i runga i ngā tūāpapa kei a tātou. Whanaungatanga/Kotahitanga He ara anō e whai nei tātou ko te ako, ko te whai māramatanga hoki ki ngā mea e hiahia ana ō tātou tāngata kia tupu, kia whanake hoki i roto, ā, i waho hoki i tā tātou pakihi. He mea waiwai ki te tupu whaiaro o ō tātou kaimahi te hoatu angitu, wero hoki i roto i ō rātou oranga ngaio, heoti anō, me whakaū tātou ka tiakina ngā āhuatanga katoa o ō rātou toiora. Me mōhio ō tātou kaimahi ki te taurite e tika ana i ō rātou oranga, ki te tautoko e wātea ana ki a rātou hoki ia rā, ia rā kia ū ai ka whai hua ā-rautaki hei pakihi. Ka whai whakaaro tonu te kaupapa ki ngā ritenga kua whakatūria kētia, ki ngā panoni ka taea pea te whakatū. Kāore i roto i ngā otinga nei ngā angitu whakangao mahi tahi i
Mauī: He aroturuki wai ki tētahi pāmu. Nā Emily Tuhi-Ao Bailey. Matau: Ko te Hui Kaimahi Pāmu a PKW ki te marae o Taiporohēnui.
PKW Pūtea
PKW Whenua
1.9%
59.5%
PARININIHI KI WAITOTARA INCORPORATION - TE PŪRONGO A TE TUMU WHAKARAE
TR15
PKW Pūtea
PKW Farms
PKW Whenua
31.3%
1.9%
59.5%
PKW Farms
31.3%
PKW Ika
PKW Ika
Mauī: Ko te kāhui tuatahi o ngā kātua hipi ki5.5% Pāmu 16, i Tiromoana, Arakamu. Matau: He Whakangao Hou - ko te 5.5% Hōtēra o Novotel i Ngāmotu. PKW Rawa Arumoni PKW Rawa Arumoni
1.7%
1.7%
PKW Whakangao
PKW Whakangao
KO TE PANONI I Ā TĀTOU0.1% RAWA PŪTAKE KA PUTA I TE WHAKATINANA I TĀ TĀTOU RAUTAKI 0.1% RERENGA KĒ I NGĀ MARAMA 12 KUA PAHURE 2017-18
2018-19 PKW Pūtea
60.4%
PKW Pūtea
PKW Farms
PKW Whenua
27.9%
60.4%
2.0%
PKW Farms
27.9%
PKW Ika
PKW Ika
5.4%
5.4%
PKW Rawa Arumoni PKW Investments
PKW Rawa Arumoni
1.2% PKW Whakangao
PKW Whakangao
2.9%
whakahaerehia ai e mātou inā tata nei, arā, he kohinga whenua i raro i ngā whare o te Karauna i waenga pū o Pōneke e kīia ana ko Tai Hekenga, i whakakotahi i ngā iwi puta noa i to tātou rohe hei tauira pai rawa atu o te mahi ngātahi, e āhei ai tātou te tōpū i ā tātou āheinga hei kaupapa whai āwhata nui ake. He kirimana rangapū i waenganui i PKW me ētehi kaipupuri whenua tūmataiti i te kaupapa o te Waipipi Wind Farm, ā, he whāinga whakaihiihi tēnei mā tatou ki roto i te rāngai whakahou pūngao. TE AROTAHI RAUTAKI Ko tā mātou arotahi matua haere tonu, haere tonu ko te whakatauriterite i tā tātou kohinga whakangao, ā, ka whakaputaina
1.2%
HE TANGATA
PKW Whenua
2.0%
2.9%
tonuhia e tā tātou rautaki rerenga kē ētehi hua toitū mā ō tātou kaiwhaipānga. I whakatātaretia a Fonterra i tēnei tau. Kua tae mai te pānui he maha ngā tūranga mahi ka whakakorengia, ā, kua kino te pā atu o te raruraru ki ētehi mo te korenga o te pūtea e whakawehea ana e tukuna ana te take. Ka puta mātou i ngā āwhā ka pā ki rōpū kē nā te pūmau me te taurite e matea ana ka homai e tā tātou rapunga whakaaro rerenga kē. E whakapono ana au hei ngā marama e tū mai ana, he rawa hiranga te pūmau, ina ka piki, ka heke hoki ngā ōhanga me ngā mākete o te ao, e whakaaweawetia ana e ngā whakataunga tōrangapū me te ngoikore haere o ngā
whakaritenga hoko. Nā tēra, he mea whakaihiihi te pānui atu i ētahi kaupapa whakangao hou e rua i tēnei tau. I tutuki te hoko mai i te Novotel New Plymouth Hotel nā te mahi ngātahi a ētahi hinonga e toru o Taranaki Maori, arā, ko Parininihi ki Waitotara Incorporation (PKW Inc), ko Te Atiawa Iwi Holdings (TAIH), ko Taranaki Iwi Holdings (TIH) hoki. He $23 miriona te utu. I tīmata te rangapū hou nei ki te whakahaere i te mōtera i te Rā Tau Hou Pākeha i raro i te ingoa o Ngāmotu Hotels Ltd. Koinei te wā tuatahi kua whakakotahitia pēneitia a PKW rātou ko Ngā Iwi o Taranaki, ā, e kitea ana ka taea pea te
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KO TE MAHI HAUMI I NGĀ TAU E RIMA KI 2018/19 2014/15
2015/16
2016/17
2017/18
2018/19
$'000
$'000
$'000
$'000
$'000
21,872
18,206
28,539
26,546
28,229
(16,561)
(16,344)
(15,642)
(17,224)
(17,321)
(3,336)
(3,280)
(2,946)
(2,684)
(2,565)
Ko te wāhinga huamoni i te kaupapa mahi tahi
1,151
1,099
954
1,784
2,269
Huamoni whakahaere / (tarepa) i mua i te tāke me ētahi atu mea
3,126
(319)
10,905
8,422
10,612
Utu tāke
(457)
(193)
(1,633)
(1,687)
(1,941)
Huamoni whakahaere / (tarepa) i muri i te tāke, ā, i mua i ngā pikinga wāriu tautika / (moni ngaro)
2,669
(512)
9,272
6,735
8,671
Ngā pikinga tapeke / (moni ngaro) i ngā whakangao
4,838
4,228
27,228
(1,159)
6,414
Ko te huamohi ka puta i ngā whakahaere e haere tonu ana
7,507
3,716
36,500
5,576
15,085
Mahinga Ahumoni Moni Whiwhi Whakapaunga whakahaere He nama ahumoni
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whakarewa i ētehi kaupapa rangapū anō hei te wāheke. He nui te pito mata tā te ahumahi whakatupu hipi e kaha haere ana mā te hunga kaiwhakangao. Nā te kaha hiahia o te hunga kiritaki ki ngā hua mīraka toitū, rerekē hoki i pēnei ai. He 300 ngā hipi Coopworth te tīmatatanga o tā tātou kaupapa whakatupu hipi, ā, e whakawhānau kūao ana i tēnei
wā - he mahi hei tīmata i tā tātou whakarite ki te whakarahi i te kāhui kia 2500 ngā hipi. Ahakoa ngā wero kei mua i te aroaro, arā ngā painga ka puta i te mahi, hei tauira te mākete hokohoko kāore anō kia houtia mō ngā hua wāriu nui a te whakatipu hipi, ā, e tino hiahia ana au kia whakamōhiotia tonuhia atu ngā whanaketanga ki ngā
kaiwhaipānga. Arā anō ētahi whanaketanga harikoa hoki, hei tauria, kua whakatōngia te huanga kōaka ahumahi tuatahi. He whānui tonu te pito mata mō tēnei tupu nā te mea he maha ngā momo whakamahinga aromoni tae ana ki te pepa, pūeru, mai, kirihou pōpopo, peita, ārai, kora koiora,
Mauī: He Whakangao - ko te Ngahere o Mangaoapa. Matau: Ko te kāhui tuatahi o ngā kātua hipi ki Pāmu 16, i Tiromoana, Arakamu.
"Kī tonu te tau e tū mai ana i ngā ara e wātea ana mā PKW i tēnei āhuatanga i a tātou e whai tonu ana i ō tātou whāinga rautaki ki te rato i ngā hua toitū ki ō tātou kaiwhaipānga." kai, me te kai mā te kararehe.
wā. Kua rite tātou mō ngā hua nui
Ka whakaora hoki tēnei i te one, ka hopu waro hoki, ā, e ai ki te pānui a te kāwanatanga mō te kaupapa tāke mā ngā pāmu hei ārai i te mahana haere o te ao, ka hāngai pea ki ā tātou whakahaere haere ake nei.
ake ka puta i ā tātou whakangao,
He mea whakamātau te huanga tuatahi hei whakaāhei i a mātou te whai mōhiotanga, te kite wero, take rānei, heoti anō he nui te pito mata ki te mākete, ā, e tino hiahia ana mātou kia whai wāhi atu. Ko te whakatupu hipi, ko te whakatupu kōaka hoki e rua noa iho o ngā ara e tirohia ana hei mahinga rerekē ki ō tātou whenua. He maha ngā momo (hei tauira, te rawa arumoni, te ngāhere me te ahumāra), ā, he waiwai te mahi ā-ture e tika ana i a tātou e tūhura ana i ara whakangao atu anō. “Kī tonu te tau e tū mai ana i ngā ara e wātea ana mō PKW i tēnei āhuatanga i a tātou e whai tonu ana i ō tātou whāinga rautaki ki te rato i ngā hua toitū ki ō tātou kaiwhaipānga.” WHAKAKAPINGA Kua pakari te tū a PKW; he kaha ōna rawa me te pūtake uaratanga ka whakarewa kaupapa ā tōna
ā, kua āta whakapaitia te huanga e pupuri nei tātou ki tō tātou rawa matua, arā, ko ō tātou whenua. Ka whakamihi mātou i te whakaaro māia me te manawanui o tō tātou tīma pāmu, o tō tātou tīma whakahaere hoki ka ratoa ngā hua whakahaere utu me ngā mahi whai hua i tonoa e mātou. Mō te tīma, ka mihi au ki a Hinerangi Raumati Tu'ua rātou ko te Poari, mō tā rātou tautoko, ārahi hoki e haere tonu ana, ki ngā
MAHI AHUMONI KO TE HUAMONI WHAKAHAERE MONI I MURI I TE TĀKE, I MUA I NGĀ PIKINGA WĀRIU TAUTIKA / (MONI NGARO) KUA PIKI I TŌNA $1.9 MIRIONA I TE TAU 2018 KI TE HUAMONI I:
$8.671 MIRIONA
kaiwhaipānga hoki. Ka haere tonu ā mātou mahi kia tū hei pakihi nā ngāi Māori o Taranaki e whakahaerehia ana e ngāi Māori o Taranaki e whai angitu ana hei pakihi rerenga kē, toitū hoki mā ō tātou tāngata, ka ārahina e ō tatou uara matua, e tō tātou whakaaro, e He Tangata, He Whenua, He Oranga.
-- mihi Nga� Warwick Tauwhare-George Tumu Whakarae
TŪĀHUA AHUMONI KUA PIKI TE UARATANGA I $10.091 MIRIONA I TE TAU 2018 KI TE:
$257.3 MIRIONA
HE TANGATA
Mauī: Ko ā PKW kararehe. Matau: Whakangao - He Āporo Rockit.
PARININIHI HE TANGATA KI WAITOTARA PARININIHI INCORPORATION KI WAITOTARA - TE PŪRONGO INCORPORATION A TE TUMU - CEO WHAKARAE REPORT
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18
PARININIHI KI WAITOTARA INCORPORATION
CHIEF EXECUTIVE OFFICER’S REPORT WARWICK TAUWHARE-GEORGE
Taiāwhiowhio ana te rere o te hauora o ngā tūpuna. Toitū te tangata, toitū te whenua, poupoua te oranga, mai Parininihi kei raro, ki Waitotara kei runga. Tēnā koutou, tēnā koutou, tēnā tātou katoa.
It is my pleasure to present, on behalf of the leadership team for Parininihi ki Waitotara Incorporation, the annual report for the financial year ending 30 June 2019. It has been an exciting year for us all, with the results of hard mahi coming to fruition as we continue to implement our diversification strategy. The importance of our core values of Manaakitanga, Kaitiakitanga, Whakapono, Whanaungatanga and Kotahitanga have always been central to how we make decisions, how we do business and how we support Taranaki Māori, and now we are able to understand with more clarity how well we are performing in these areas with the development of the Kaupapa Evaluation Tool (KET). Being able to quantify and measure these concepts means that we can widen our horizon of success to encompass all that is important, not just the financial bottom line. While delivering the investment outcomes our shareholders expect is a key focus
for our team members across the business, our cultural values, our environmental responsibilities, our concern for the care and welfare of our animals and providing opportunities for our whānau to shine are also on show. While the KET long-term outcome scores this year provide us with a benchmark on which we can record progress in the years to come, they also provide us with a snapshot of where we stand and I feel that we can stand tall. There is much to celebrate in these results and we should take the opportunity to do so. The results also show us where we can improve and grow as an organisation and, as a team, we are looking forward to making the incremental changes required as we follow the path we have laid down for ourselves. FINANCE The results for the financial year 18/19 show a net profit after tax of $15.1m, with total comprehensive revenue recorded for the year at $10.1m.
This increased result on last year (net profit after tax FY 17/18 $5.6m) is due to a favourable group revenue attributed to two significant factors; • Improved weather leading to good pasture growth saw an uplift in milk production and therefore milk proceeds – 2,917m kgMS (PY: 2,465m kgMS) although this was offset in part by a lower milk price – $6.35 (PY: $6.75). This reduction in milk price was further mitigated by the introduction of milk price futures which hedged 50% of production at $6.46. • An improved market price for lobster resulted in Annual Catch Entitlement (ACE) lease values being set around 8% higher than last year. In addition, ACE volumes were increased by approximately 2,267kgs by Ministry of Primary Industry (MPI). • These were offset by nil dividends
being received from Fonterra (prior year approx. $0.95m). The overall gain across the PKW Group reflects a combination of a reduction in the value of Fonterra shares of $1.59 per share, costs associated with some vacant dwellings and the sale of freehold or non-strategic leasehold farms, an increase in the Mangaoapa forestry block value, a net uplift in the property investment portfolio (which includes both rural and commercial properties) and an increase in the value of corpus land. Group expenditure remained consistent with last year at $17.3m (FY17/18 $17.2m), demonstrating the continued focus the team has had on monitoring costs across the Group, but particularly within PKW Farms LP. Profits from joint ventures were also favourable to last year at
$15.1
MILLION NET PROFIT AFTER TAX
$2.3m (FY17/18 $1.8M) reflecting an ongoing positive performance by Port Nicholson Fisheries and Facilities (PNF) and the introduction of Ngāmotu Hotels to the books. KET LONG-TERM OUTCOMES
HE TANGATA
"There is much to celebrate in these results and we should take the opportunity to do so."
PARININIHI KI WAITOTARA INCORPORATION - CEO REPORT
19
The full KET metric results and overviews can be found later in this report, but there are some highlights I wish to single out. Manaakitanga The management of risk and the reduction of our debt load by circa $12m gives us a strong working capital position to support our diversification aspirations and to take up opportunities when they present themselves. Cost management is currently sitting at the minimum level we have set as acceptable, which belies the focus, hard-work and commitment that has gone
Left: PKW Shareholder Whanau at PKW Farm Te Ruru, Ohāngai, Hāwera. Right: Investment at Port Nicholson Fisheries LP.
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" Our role as kaitiaki of our whenua is something that is held in high importance by our shareholders and so the positive metric scores in this area are very pleasing."
<<
into creating a leaner and more efficient PKW Farms business. We have made considerable investment into our farms over the last three years to be able to drive the change that was needed there, and the results are beginning to show. Our procurement strategy has also begun to deliver tangible results, with a change in the way we regard our suppliers and the mindset we ourselves hold when it comes to acquisitions. Building strong partnerships with suppliers who are keen to explore the valueadd approach not only benefits PKW, but the Taranaki economy as a whole. We have long been a commercial engine room for the region and will continue to do so. Kaitiakitanga Our role as kaitiaki of our whenua is something that is held in high importance by our shareholders and so the positive metric scores in this area are very pleasing. This year saw the launch of the first project driven by our Kaitiakitanga Strategy with the
environmental monitoring of our awa now underway. Employing both scientific and mātauranga Māori approaches to assess the health of the waterway and the animals and plants that rely on them will give us a clear indication of the effectiveness of the work we have already done, and what more may be needed to ensure the mauri of the waterways is strong and vibrant. Whakapono As a Māori Incorporation we work for, and serve all shareholders who whakapapa to Taranaki Māori, their iwi, hapū, whānau and uri. This presents PKW with a challenge as we look to developing our focus in this area and asking ourselves how do we bring our cultural visibility and pride to the fore, what can be done to forge closer connections to the whenua for our shareholders and how best to tell our story. It will be an enlightening journey as we seek to build on the foundations we already have.
Whanaungatanga/Kotahitanga Our learning and understanding of what our people need to grow and develop both within and without our business is another path we are following. Giving our kaimahi opportunities and challenges in their professional lives is essential to their personal growth but we need to ensure that all aspects of their well-being are being cared for. In order to remain strategically effective as a business, our kaimahi should to be aware of the balance they need in their lives and the support that is available to them day-to-day. The organisation will be continuing to assess what is already in place and any changes that could be made. The co-investment opportunities we have facilitated recently are not contained in these results—Tai Hekenga, a property portfolio of land under Crown-owned buildings in central Wellington, brings together iwi from across our region in a perfect example of how, by
Left: Water Monitoring at Farm at by Emily Tuhi-Ao Bailey. Right: PKW Kaimahi Farms Conference at Taiporohenui Marae.
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PKW Whenua
59.5%
PARININIHI KI WAITOTARA INCORPORATION - CEO REPORT
PKW Cash
1.9%
PKW Farms
31.3%
PKW Fish
5.5% Left: First flock of Coopworth Ewes at Farm 16, Tirimoana, Eltham. Right: New Investment - Novotel Hotel NP.
PKW Commercial Property
1.7%
PKW Investments
0.1%
CHANGE IN OUR ASSET BASE AS A RESULT OF OUR DIVERSIFICATION STRATEGY IMPLEMENTATION OVER THE PAST 12 MONTHS 2017-18
2018-19 PKW Cash
PKW Whenua
1.9%
59.5%
PKW Whenua
PKW Farms
60.4%
31.3%
2.0%
PKW Farms
27.9%
HE TANGATA
PKW Cash
PKW Fish
5.4%
PKW Fish
5.5%
PKW Investments
PKW Commercial Property
1.2%
PKW Commercial Property
1.7% PKW Investments
PKW Investments
2.9%
0.1%
working together, we can leverage PKWaCash our capabilities into larger scale 2.0% proposition. PKW Whenua The Waipipi Wind PKW Farms 60.4% 27.9% Farm consists of a partnership agreement between PKW and several private landowners and is an exciting foray into the renewables energy sector for us. STRATEGIC FOCUS
can weather the storms of others because our diversification philosophy gives us the stability and balance required. I believe that stability will be an important asset in the months to come, as global economies and markets continue to fluctuate, influenced by political mandates and weakening trade agreements. PKW Fish
Balancing our investment portfolio 5.4% will continue to be our main To that end, it was exciting to PKW Commercial Property focus going forward, with our be able to announce two new 1.2% diversification strategy continuing investment initiatives this year. to bring sustainable returns for our PKW Investments The purchase of the Novotel New shareholders. 2.9% Plymouth Hotel for $23 million Fonterra has been the subject of was made possible through the intense scrutiny this year, with the partnership of three Taranaki Māori recent announcement of major entities - Parininihi Ki Waitotara losses and no dividend payout Incorporation (PKW Inc), Te Atiawa causing much distress in some Iwi Holdings (TAIH) and Taranaki areas. As an Incorporation, we Iwi Holdings (TIH). This new joint
venture took over the operation of the hotel on New Year’s Day under the name of Ngāmotu Hotels Ltd. It is the first time that PKW Incorporation and Ngā Iwi o Taranaki have come together in this way and shows a promising start to further potential partnership initiatives in the future. The emerging sheep dairying industry offers significant potential for investors, driven by high consumer demand for environmentally sustainable, alternative milk products. Our starting point for our own sheep dairying proposition in the form of 300 Coopworth ewes are currently lambing – the first steps in our plan to build up the flock to 2500. While there will be challenges to
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FIVE YEAR CONSOLIDATED PERFORMANCE TO 2018/19 2014/15
2015/16
2016/17
2017/18
2018/19
$'000
$'000
$'000
$'000
$'000
21,872
18,206
28,539
26,546
28,229
(16,561)
(16,344)
(15,642)
(17,224)
(17,321)
(3,336)
(3,280)
(2,946)
(2,684)
(2,565)
Share of profit from joint venture
1,151
1,099
954
1,784
2,269
Operating profit / (deficit) before tax and other items
3,126
(319)
10,905
8,422
10,612
Tax expense
(457)
(193)
(1,633)
(1,687)
(1,941)
Operating profit / (deficit) after tax and before fair value gains / (losses)
2,669
(512)
9,272
6,735
8,671
Net gains / (losses) from investments
4,838
4,228
27,228
(1,159)
6,414
Profit from continuing operations
7,507
3,716
36,500
5,576
15,085
Financial Performance Revenue Operating expenses Finance costs
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be faced, the largely untapped
export market for high-value sheep dairy products will be worth the
mahi and I look forward to keeping our shareholders updated on developments.
There are some further interesting developments, too, with our first crop of industrial hemp to be planted.
The potential for this plant is extensive, as it has a wide variety of commercial applications including paper, textiles, clothing, biodegradable plastics, paint, insulation, biofuel, food, and animal feed.
help combat global warming, may
It also restores the soil and is a carbon sequester, which given the governmentâ&#x20AC;&#x2122;s announcement on a levy scheme for farms to
issues, but again the potential in
become relevant to our future operations.
This first crop is a trial to enable us to build knowledge and
discover any challenges or
the marketplace is considerable
and we are keen to be part of the action.
Left: Investment - Mangaoapa Forest. Right: First flock of Coopworth Ewes at Farm 16, Tirimoana, Eltham.
PARININIHI KI WAITOTARA INCORPORATION - CEO REPORT
23
Left: PKW livestock. Right: Investment - Rockit Apples Product.
HE TANGATA
"The year to come is full of possibilities for PKW in this space as we continue to follow our strategic goals to deliver sustainable returns to our shareholders."
Sheep dairying and hemp crops are just two of the ways we are seeking alternative land use options for our whenua. The scope is wide (commercial property, forestry and horticulture, for example) and carrying out our due diligence as we explore other investment opportunities will be essential. The year to come is full of possibilities for PKW in this space as we continue to follow our strategic goals to deliver sustainable returns to our shareholders. CONCLUSION PKW is in a solid position with a strong asset and equity base on which to launch future endeavours. We are poised for elevated returns on our investments and have much improved the leverage we hold in our core asset, our whenua. We acknowledge the positive mindset and dogged persistence
displayed by our farming and operations teams to deliver the cost management results and efficiencies we asked of them. On behalf of the team, I wish to thank Hinerangi Raumati Tu’ua and the Board for their ongoing support and guidance, along with the
FINANCIAL PERFORMANCE OPERATING PROFIT AFTER TAX AND BEFORE FAIR VALUE GAINS / (LOSSES) UP $1.9M FROM 2018 TO A PROFIT OF:
$8.671M
shareholders. As always, we will continue to work towards our mission to be a successfully diversified and sustainable Taranaki Māori owned and operated business providing meaningful opportunity for our people, guided by our core values and our vision of He Tangata, He Whenua, He Oranga.
FINANCIAL POSITION EQUITY UP $10.091M FROM 2018 TO:
$257.3M Nga�- mihi Warwick Tauwhare-George Chief Executive Officer
24
PKW GROUP - ENTITIES
PKW Shareholders
PKW Incorporation
PKW Trust
Active Investment
Passive Investment
Mangaoapa Forest Partnership
PKW Farms LP *
Te Pūia Tāpapa LP
* PKW Farms is a 100% owned subsidiary of PKW Incorporation.
PNF Fisheries LP PNF Facilities LP
Tai Hekenga LP
Ngāmotu Hotels LP
Rockit Orchard No.2 LP
25
HE TANGATA PARININIHI PARININIHI KI WAITOTARA KI WAITOTARA INCORPORATION INCORPORATION - GROUP - CHAIR'S PERFORMANCE REPORT
COMMITTEE OF MANAGEMENT
L-R: David MacLeod; Hinerangi Raumati-Tu'ua (Chair); Taaringaroa Nicholas; Bev Gibson; Claire Nicholson; Hinerangi Edwards; Dion Tuuta.
INDEPENDENT DIRECTORS
Richard Krogh
Philip Luscombe
SHAREHOLDER REPRESENTATIVE
Darryn Ratana
26
COMMITTEE OF MANAGEMENT
JOINT VENTURE COMPANIES
Hinerangi Raumati-Tu'ua (Chair) Bev Gibson Claire Nicholson David MacLeod Dion Tuuta Hinerangi Edwards Taaringaroa Nicholas
PORT NICHOLSON FISHERIES GENERAL PARTNER LTD Hinerangi Raumati-Tu'ua Warwick Tauwhare-George
CHIEF EXECUTIVE / SECRETARY Warwick Tauwhare-George
NGAMOTU HOTELS GENERAL PARTNER LTD Warwick Tauwhare-George
KOURA INC GENERAL PARTNER LTD Hinerangi Raumati-Tu'ua Warwick Tauwhare-George
OTHER Mangaoapa Forest Partnership Rockit Orchard No.2 LP Te Pūia Tāpapa LP (established but no trading last year) Tai Hekenga LP (established but no trading last year)
PKW COMMITTEES PKW TRUST Hinerangi Edwards (Chair) Bev Gibson Claire Nicholson David MacLeod Dion Tuuta Hinerangi Raumati-Tu'ua Taaringaroa Nicholas Darryn Ratana (PKW Trust Shareholder Representative) HUMAN RESOURCES COMMITTEE Bev Gibson (Chair) Hinerangi Edwards Hinerangi Raumati-Tu'ua Phillip Luscombe (Independent Director) AUDIT AND RISK COMMITTEE Taaringaroa Nicholas (Chair) Claire Nicholson David MacLeod Dion Tuuta Richard Krogh (Independent Director)
SUBSIDIARY COMPANIES PKW FARMS GENERAL PARTNER LTD Richard Krogh (Chair & Independent Director) Claire Nicholson Phillip Luscombe (Independent Director) Taaringaroa Nicholas PKW INVESTMENTS LTD (INACTIVE) Hinerangi Raumati-Tu'ua COMPANIES BEING REMOVED IN 2019/20 Te Oranga Livestock Limited (ceased trading 30 June 2018)
27
HINERANGI RAUMATI-TU'UA
CLAIRE NICHOLSON
Elected Chair, Committee of Management of PKW Incorporation in 2011. Chair PKW Farms General Partner Ltd (until end December 2019), member of Human Resources Committee and PKW Trust.
Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd, member of Audit and Risk Committee and PKW Trust.
ENTITY POSITION Aotearoa Fisheries Ltd Director Nga Miro Trust Chairman Port Nicholson Fisheries General Director Partner Ltd Taranaki Iwi Holdings Management Director Limited Koura Inc General Partner Limited Director Venture Taranaki Director Taranaki Aquagardens Limited Director PKW Investments Limited Director Nga Kai Tutoko Limited & Te Pou Chair Herenga Pakihii LP Te Kiwai Maui Ltd Chair Tainui Group Holdings Limited Director Sealord Limited Director
ENTITY POSITION AgResearch Associate Director Sirona Animal Health Ltd Director/Shareholder EOS Consulting Ltd Director Techion Shareholder Edison Consulting Group Ltd Shareholder O'Brien Group Holdings Ltd Director/Shareholder Mahu Oils Ltd Director
DAVID MACLEOD Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd (until end December 2019), member of Audit and Risk Committee and PKW Trust. ENTITY POSITION AJ Greaves Electrical Ltd Shareholder Taranaki Regional Council Chairman LGNZ - Regional Affairs Committee Member Port Taranaki Ltd Director Matau Technologies Limited Director Predator Free 2050 Ltd Director
DION TUUTA Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd (until end December 2019), member of Audit and Risk Committee and PKW Trust. ENTITY POSITION Tuuta Waetford Tapui Ltd Director Koura Inc General Partner Limited Director/Chair Port Nicholson Fisheries General Director/Chair Partner Ltd Seafood New Zealand Ltd Director/Shareholder Te Ohu Kaimoana CEO Te Ohu Kaimona Custodian Ltd Director TSB Bank Ltd Director
HINERANGI EDWARDS Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd (until end December 2019), member of Human Resources Committee and Chair PKW Trust. ENTITY POSITION Aatea Consultants Ltd Director (t/a Aatea Solutions) R and R Edwards Whanau Director Trustee Ltd Māori Translation.Co.NZ Ltd Director ANZLF Indigenous Women's Board Member Business Network (IWBN) Korou Digital (Charitable) Trust Trustee Kupenga 94 Trust Trustee Te Taura Whiri Māori Language Board Member Commission
PARININIHI KI WAITOTARA INCORPORATION - COMMITTEE OF MANAGEMENT
REGISTER OF INTERESTS
28
REGISTER OF INTERESTS (CONTINUED)
BEV GIBSON
PHILIP LUSCOMBE
Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd (until end December 2019), Chair Human Resources Committee and member of PKW Trust.
Independent Director of PKW Farms General Partner Ltd and member of Human Resources Committee.
ENTITY POSITION Quality Visions Ltd Managing Director Mahia Mai a Whai Tara Trust Chairman Amiria Rangi Education Trust Trustee Lantern House Trust Independent Trustee Taranaki District Health Board Board Member Te Korowai o Ngaruahine Trust Chair Tamariki Pakari Child Trustee Youth & Wellbeing
TAARINGAROA NICHOLAS Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd, Chair Audit and Risk Committee and member of PKW Trust. ENTITY POSITION Ngati Ruanui Holdings Director Corporation Ltd Ngati Ruanui Holdings Operating Director Company Ltd Parininihi ki Waitotara Incorporation Committee Member/ Shareholder PKW Farms Ltd Director Te Awanui Hukapak Ltd Director Southern Pastures (NZ) Ltd Director Southern Pastures Founders Ltd Director/Shareholder Southern Pastures Management Ltd Director/Shareholder Waikato-Tainui College of Research & Development Trust Trustee Te Waharoa Investments Ltd Director Matariki Capital Partners Ltd Director Waikato-Tainui Group Member Investment Committee Rangitane Tu Mai Ra Ltd Director Te Kiwai Maui Ltd Director Oriens Capital GP Ltd Director Miro LP Limited Partner Rockit Orchards LP 1 Limited Partner
ENTITY POSITION Philip Luscombe Partnership Partner Hendham Farm Co Director Koki South Farms Limited Director Pharm Trust Ltd Trustee PKW Farms Limited Director Allied Farmers Limited Director Kingfisher Escape Limited Director Ocean Ohope Limited Director Argyll Farms Ltd Chairman Massey, Lincoln & Agricultural Trustee Industry Trust Allied Nationwide Finance Ltd Director Allied Farmers Rural Ltd Director Mairangi Investments Ltd Director Par Farms Ltd Director Te Rua o Te Moko Ltd Director NZ Farmers Livestock Ltd Director NZ Farmers Livestock Finance Ltd Director
RICHARD KROGH Appointed Chair of PKW Farms General Partner Ltd (from January 2019), Independent Director and member of Audit and Risk Committee. ENTITY POSITION Energia Limited Managing Director Port Taranaki Limited Director/Deputy Chair Top Energy Limited Director/Chair Ngawha Generation Limited Director/Chair First Gas Topco Limited and Director/Deputy Chair Subsidiaries Gas Services New Zealand Ltd Director/Deputy Chair and Subsidiaries Ngawha Spa Limited Chair Liquigas Director
29
GOVERNANCE
PKW Incorporation Attended
Hinerangi Raumati-Tu'ua Hinerangi Edwards Bev Gibson Claire Nicholson David MacLeod Taaringaroa Nicholas Dion Tuuta Darryn Ratana Phillip Luscombe Richard Krogh
7 6 7 7 4 5 7 -
Possible
7 7 7 7 7 7 7 -
Audit and Risk HR Committee PKW Farms General Committee Partner Ltd Attended
4 1 4 4 4 5 4
Possible
5 n/a 5 5 5 5 5
Attended
5 4 5 4 -
Possible
5 5 5 5 -
Attended
3 3 3 6 2 5 3 7 7
Possible
3 3 3 7 3 7 3 7 7
PKW Trust Member Attended
5 5 5 4 3 4 5 2 -
NOTE:
PKW Incorporation and PKW Farms GP Ltd meetings are held on the same day.
PKW Farms General Partner Ltd's structure and Board membership was updated effective as of January 2019
EXECUTIVE LEADERSHIP TEAM
Warwick Tauwhare-George Mitchell Ritai (Chief Executive (General Manager, Officer) Shareholder Engagement)
Jacqui King (Head of Corporate Services)
Shane Miles (General Manager, Ahuwhenua)
Joe Hanita (Chief Financial Officer)
Possible
5 5 5 5 5 5 5 5 -
PARININIHI KI WAITOTARA INCORPORATION - COMMITTEE OF MANAGEMENT
GOVERNANCE ATTENDANCES
30
PARININIHI KI WAITOTARA INCORPORATION
31
HE WHENUA
Capturing our core values
Inspired by the values that form the strategic core of the Parininihi ki Waitotara Incorporation, four tohu have been created that embody the cultural meaning behind them. The four panels create an epa, or back wall, of a pātaka (food storage house), which come together to represent PKW’s vision: He Tangata, He Whenua, He Oranga. The first reflects a Taratara a Kae carving pattern which portrays the story of Tinirau, who loans his pet whale Tutanui to a guest named Kae. This pattern symbolises prosperity, generosity and the concept of Manaakitanga, providing for present and future generations. The five ‘teeth’ within the design reflect the five KET
(Kaupapa Evaluation Tool) metrics within the Manaakitanga core value.
integrity, it also has a pointed head and reflects the five KET metrics within the design.
The male manaia in the second panel stands as a kaitiaki, just as PKW acts as a guardian of its shareholders interests. Its pointed head shows the regional influence in the design (Taranaki manaia often have pointed heads in reference to the maunga) and the puhoro (thigh tattoo) features nine ‘teeth’ – the nine KET metrics that make up the Kaitiakitanga core value.
The final panel features ritorito, a Taranaki carving pattern that represents harakeke (flax) and the whānau unit of mātua (parents) protecting the tamariki (child). PKW’s core values of Whanaungatanga and Kotahitanga, of building trusted relationships and working together, echo the concept of a whānau caring for each other. The KET metrics are represented by the six strands of harakeke within the design.
Whakapono, the belief in the future and in following Māori tikanga, is represented by the female manaia in the third panel. Standing for truth, honesty and
32
HE WHENUA
PARININIHI KI WAITOTARA INCORPORATION
33
Te Ara Putanga
Our Outcomes Pathway
Traditionally, the success of a business or organisation is measured in purely financial terms, in its profit and loss and the all important bottom line. But the goals and aspirations of Parininihi ki Waitotara run deeper than a single dollar figure.They are built on the core values of Katiakitanga, Manaakitanga, Whakapono, Whanaungatanga and Kotahitanga and show where the Incorporation’s success really lies – in its whenua, in its people and in the way it conducts its business. “Our values are the strong platform on which our vision of He Tangata, He Whenua, He Oranga sits,” says Hinerangi Raumati Tu’ua, Chair of the PKW Board. “They are taken into account during every
discussion around the Board table and drive every decision we make. “They define us as Taranaki Māori, a strong whānau with clear aspirations for the future and goals to aim for in the here and now.” The Kaupapa Evaluation Tool (KET) has enabled the business to assess and quantify measurable outcomes based on these values to ensure the core strategies are being followed and reinforced – it has created an outcomes pathway. The tool has been in use for nearly five years as an assessment mechanism for investment opportunities to ensure any decisions take the organisation in the strategic direction laid down by the Board.
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34
<<
Made up of around 20 original metrics (a measure used in quantitative assessment), the original KET was developed with the assistance of Sacha McMeeking, Senior Lecturer at Canterbury University. “While KET in its original form has served us well when assessing investments in the past, we wanted to build on that foundation ensuring that future ventures would deliver the long-term outcomes we want to achieve right across the organisation,” says Warwick Tauwhare-George, PKW CEO. “Our values are at the core of what we do, so it is important that they are the core of what we deliver too, so we have balance across our whole kaupapa.” The revised version of KET now has 25 different metrics that assess investment opportunities and asset management across a wide range of criterion such as cost management, animal welfare, resource use and efficiency, cultural pride, the PKW narrative, employment provision for Taranaki Māori and progressive procurement. Every PKW asset and investment is assessed against these 25 metrics at initial acquisition and annually to ensure it falls and remains within the parameters of the PKW kaupapa and delivers against the commitment made in the core values. Each metric has a rating grade from one to 10. PKW has set the minimum standard for any metric at five, which means any investment or asset delivering at a lower level sets off a ‘red flag’. “If an assessment results in a low score, we address the issue in a methodical and proactive way,’ says Warwick. “We don’t do knee-jerk reactions and expect to change things overnight. Our approach is to think about the next five, 10, 25, 50 years and make decisions that will deliver results over the long-term.”
"We are on a journey together to provide opportunity and prosperity for the generations of today and to come, to care for our whenua entrusted to us by our tūpuna and to do so with integrity." Warwick Tauwhare-George, PKW CEO
Combining the annual KET scores for each metric gives a quantified, realistic and holistic view of the way the business is performing and if actions are aligned with the strategic direction and values intent. It also offers a clear and transparent picture to shareholders of what has been achieved during the year, and where attention may be needed. “While delivering favourable financial results year-on-year is, of course, important, we are more than a money-making machine,” says Warwick. “We are on a journey together to provide opportunity and prosperity for the generations of today and to come, to care for our whenua entrusted to us by our tūpuna and to do so with integrity. “Our long term outcomes (assessed through KET) gives us focus while we are on that journey and represents indicators or markers of our progress. Those markers, signposts, guide us in our decisions while constantly realigning us, ensuring we stay on our chosen path to realise "He Tangata, He Whenua, He Oranga.” Each asset or investment being assessed falls into one of two groups – active or passive. Active investments are those which PKW has control over such as its
dairy and drystock farming, Port Nicholson Fisheries and its lobster quota, New Plymouth’s Novotel and our its commercial property portfolio. Metrics that fall below the minimum standard set by the Board (indicated by a dotted line in the graphic representation opposite) are flagged and an action plan formulated and implemented to raise the score over time. Passive investments, however, are ones in which PKW has no direct influence. Examples are corpus land currently under leasehold and Rockit Apples. Balancing the allocation between active and passive assets or investments is an important consideration, in order to deliver against long term outcomes. Four key investments made this financial year under the Diversification Strategy will deliver and contribute to the metric results in next year’s report – these are Tai Hekenga, Waipipi Wind Farm, Te Pūia Tāpapa Fund and Sheep Dairying. “These are significant and exciting partnerships and interests that are taking us further along the pathway to diversification and a balanced portfolio that will deliver year-onyear,” says Warwick. “We are looking forward to their inclusion in the long-term outcome annual results next year.”
35 PARININIHI KI WAITOTARA INCORPORATION
PKW Long Term Outcomes Annual Results
GA/ N ATAGA G N ITAN U A H ANOTA K
MAN AAK ITA NG A
HE WHENUA
W H
The inaugural annual results for the Parininihi ki Waitotara Incorporation long term outcomes are presented on the following pages.
W H A K AP O
GA
NO IT KA These results set the benchmark score for each metric making up the PKW Kaupapa Evaluation Tool, with the intent to give shareholders a 'big picture' view across the organisation, not just a single result based on financial figures. Results will be presented this way each year moving forward, allowing the organisation to give
its shareholders a transparent and accurate report on the progress made across the values of Manaakitanga, Kaitiakitanga, Whakapono, Kotahitanga and Whanaungatanga that lie at the heart of PKW and its vision of He Tangata, He Whenua, He Oranga.
IA
N A T KI
Each metric consists of; • A description. • A result on a scale of 1 – 10. PKW has set a minimum standard for any metric at 5, represented by a dotted line on the graph above. • An explanation of the annual result. • Future actions planned.
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36
Manaakitanga Care for our present and future generations
RETURN ON ASSETS
The rate of return on the asset / investment PKW holds or has made. A 5% return across the Incorporation portfolio has been set as the target.
4/10
Why? This score reflects the fact that our investment portfolio is weighted towards primary industries, in particular farming (capital intensive with a lower return profile). Overall, the individual asset or investment results were wide, ranging from scores of 1 to 10, but a cluster of farms were noted at the bottom of the range.
What's next? There continues to be a focus on lifting business performance, particularly within PKW Farms, in order to improve the bottom line. Diversification will continue to be an important means to address economic challenges, bringing stability and balance to deliver a more consistent business financial result over time.
DEBT
The level of debt and debt maturity committed to PKW's business activities and investments. Balancing the debt across the organisation's interests is key and any investment decisions need to comply with the debt cap of 25% (asset to debt ratio) set by the Board for the Incorporation as a whole.
7/10
Why? All debt held by the Incorporation was repaid during the prior year and nearly $10m of PKW Farms debt has also been cleared. Overall debt levels sit at 16%, which is well under the debt cap.
What's next? Active management of the PKW Farms debt level to reduce it in the short- to medium-term below the current 40% operating parameter will be a focus. Diversification funded by debt will commence based on a conservative and considered approach adopted by the Board, noting the broader intent and objectives laid down in the PKW core values and mission kĹ?rero.
DIVIDENDS AND DISTRIBUTIONS
This metric measures EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) which is essentially the core operating performance of the organisation and informs distribution to shareholder decisions. In basic terms, the higher the result, the greater the potential for an improved dividend.
5
/10
Why? Similar to the commentary above re Return on Assets, the result reflects an investment portfolio weighted towards primary industries. When you remove depreciation (capital consideration) most assets and investments produce positive operating results with only a few farms noted near the bottom of the range.
What's next? Delivering tangible results to shareholders is an important outcome for the organisation and a consistent increase over time is the aim, through delivery of the diversification strategy. Making decisions across the business to optimise business operating performance is crucial.
MANAAKITANGA
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37
PKW Kaimahi - Finance Cadet, Mel Williams and son Teina.
RISK
Robust policies, processes and systems are key to identifying, tracking and managing risk. This metric is influenced by both active and passive investments.
9/10
Why? This high score reflects the scale and maturity of the active business assets PKW holds along with the emphasis on risk management within the Incorporation's culture.
What's next? Any weak spots within the risk management framework are being actively sought and recognised so enterprise risk can be managed as much as possible.
COST MANAGEMENT
Close management of business cost is essential to maintaining and lifting the bottom line. Adhering to budgets and ensuring cost rationalisation procedures are in place deliver positive results.
5/10
Why? Most assets, farms and investments remained within the expenditure budget set for the year which demonstrates the effort and growth in lifting financial management culture across the business (budget setting participation and understanding, informed decision making and active monitoring).
What's next? Building long term relationships and encouraging a value-add approach from suppliers is a key driver in the PKW procurement strategy with the intent to influence cost management practices and results. In addition, empowering those making procurement decisions will further build on our financial management culture and assist to maintain if not drive costs down without compromising business performance.
<<
38
Kaitiakitanga Commitment to leadership
Water Monitoring - Emily Tuhi-Ao Bailey and Mitchell Ritai at Farm 6, Opua, Opunake.
HEALTH AND SAFETY
Clear expectations and key performance indicators encourages a positive health and safety culture across PKW's business concerns and active investment interests. The score of this metric is directly linked to the reporting protocols in placeâ&#x20AC;&#x201D;a score of 5 indicates all reporting responsibilities have been met.
5/10
Why? While some individual results were excellent (score of 7) others were less than ideal (score of 2). Consistency of KPI achievement is important within this space and reflects upon the health and safety culture of an organisation.
What's next? A health and safety refresh across the business is planned with an independent assessment being completed to identify any issues or opportunities within the PKW health and safety framework and culture.
PARININIHI KI WAITOTARA INCORPORATION
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ANIMAL WELFARE
The extent to which the organisation meets its requirements and obligations for animal welfare across its entire portfolio, not just within PKW Farms LP. PKW's dairy business is assessed through the â&#x20AC;&#x2DC;WelFarmâ&#x20AC;&#x2122; programme. This independent industry-wide tool uses data generated by the PKW Farms vet to provide an overview of how animals are cared for and is designed to help dairy farmers better understand key animal health markers and how they impact on the optimisation of on-farm production performance. Why? Exercising kaitiakitanga over animal welfare is a core key component of the PKW farming business activity. Ensuring that the appropriate level of care, and actions on-farm display best-practice is why the business has the oversight of the Welfarm Program and specialist veterinarians. The overall PKW Farms Welfarm assessment demonstrated that our overall practices and animal welfare compared well to industry standards.
What's next? PKW Farms has recently developed an Animal Health Plan to help achieve the aspiration to be a best-in-class farming business. This is aimed at ensuring we are proactive with our animal health planning to ensure optimum care and health of our animals. This is intended to be a live document that will evolve as both technology and tools to aid improved standards become available.
KAITIAKITANGA
8/10
WATERWAYS PROTECTION
The Kaitiakitanga Strategy sets minimum requirements for protecting awa that flow across PKW whenua and monitoring protocols to assess the health of the water. Fencing off waterways from stock and riparian planting are at the heart of this metric.
8
/10
Why? A focus for the last five years, fencing and planting has seen considerable investment with the result that 95% of PKW managed waterways are now protected.
What's next? The aim for the next year is to bring the fencing and planting programme to 100% with around $400k budgeted for materials, plants and labour.
<< PKW Kaimahi - Bronwyn MacFarlane.
40
Kaitiakitanga (continued) Commitment to leadership
ENVIRONMENTAL COMPLIANCE
This measures the extent and ability to which the organisation is able to comply with the relevant and applicable environmental legislation and other regulatory requirements. There are four sections, each with their own score, within this metric. a) Agri-Investments - both mandatory and voluntary environmental compliance (for example, riparian fencing is not a legal requirement but an aspiration by Taranaki Regional Council for all regional waterways to be completed by 2020. However, the importance PKW places on its guardianship of the whenua has meant the organisation shares this aspiration and is working to play its part). This metric encompasses the health of the waterways and the flora and fauna found there.
7/10
Why? The monitoring of the waterways to assess and improve their condition has just begun.
What's next? A programme of regular surveys at key sites across the 18 PKW Farms is currently being put in place.
b) Commercial Investments - Asbestos - ensuring that buildings and whenua within the commercial investment portfolio are up to standard, specifically under Health and Safety at Work (Asbestos) Regulations 2016.
8/10
Why? There is no asbestos present in properties where assessments have been completed.
What's next? Formal assessments to be carried out where status is unknown.
c) Commercial Investments - Land Contamination - ensuring that buildings and whenua within the commercial investment portfolio are up to standard with regards to the identification and management of land contamination.
10/10
Why? No contamination is recorded at any PKWowned property.
What's next? Monitoring will be on-going to maintain this favourable status quo.
d) Commercial Investments - Building Warrant of Fitness - ensuring that buildings and whenua within the commercial investment portfolio are up to standard - specifically with regards to Building Warrant of Fitness.
10/10
Why? Every PKW-owned building has passed the Building Warrant of Fitness assessment and the subsequent compliance paperwork is displayed publicly.
What's next? Monitoring will be on-going to ensure the annual assessment is passed without issue.
KAITIAKITANGA
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Water monitoring at Farm 6, Opua, Opunake.
RESOURCE USE AND EFFICIENCY
This metric is split into three sections to ensure that an accurate assessment can be made across all resource consumption. a) Resource use and efficiency - Nutrients. Conscious and careful application of fertiliser and urea across both dairy and dry stock farming concerns to ensure only what is needed is used in the correct quantities at the right time.
10
/10
Why? All fertiliser and urea use is controlled through the OverseerFM online software tool which uses scientific modelling to analyse the nutrient flow through a farm system.
What's next? PKW Farms is planning to invest in another online tool that uses satellite imagery to monitor grass growth rates so an even more accurate application plan can be put in place.
b) Resource use and efficiency - Water. Using water efficiently is important for both the bottom line and the environment.
7/10
Why? New effluent management systems have enabled farms to reduce the amount of fresh water being used (eg a filtering and recycling process means 'green water' can be used to wash down yards and milking sheds rather than fresh water).
What's next? All PKW farms now have monitoring tools in place so that water usage can be measured and assessed to enable conservation mechanisms to be considered and be put into place.
c) Resource use and efficiency - Energy. Reduction in the use of energy, primarily electricity, signifies essential cost savings as well as being good for the planet.
6/10
Why? There were mixed results within this metric, with some commercial properties failing to monitor energy use to a sufficient standard, if at all.
What's next? The formulation and implementation of a robust energy monitoring system for commercial property investments is to be developed. However, all PKW dairy farms are currently benchmarked by Meridian (our electricity provider) and recommendations made to optimise energy use. On-going monitoring will be used to assess improvements.
<<
42
Kaitiakitanga (continued) Commitment to leadership
WASTE MANAGEMENT
All investments are required to comply with any resource consents in place. In addition, there is an expectation that waste is actively monitored as to amount and type.
6/10
Why? Although recycling occurs across the majority of PKW farms and properties, formulated and systematic monitoring is not in place. PKW farms ensure that plastic wrap from silage and scrap metal is recycled and that no rubbish is dumped on farm. Dead animals are also disposed of correctly.
What's next? A standardised approach to ensure consistent and effective recycling and disposal of waste is being planned and will be enforced across all investments (e.g. using food scraps generated by the New Plymouth Novotel hotel effectively and installing recycling bins in all hotel rooms will help to reduce the impact of waste generated by that business).
EFFLUENT MANAGEMENT
Compliance with resource consents is non-negotiable for PKW's agri-business and reducing the environmental impact of both dairy and dry stock units forms part of the Kaitiakitanga Strategy.
6/10
Why? Over the past 3-4 years a considerable investment has been made to upgrade and future-proof effluent systems with only 2-3 improvements left to occur in the next 12 months.
What's next? Live monitoring of effluent systems in the future will mean a score of 10 is achievable within this metric.
CLIMATE CHANGE RISKS
To be determined by the PKW Climate Change Strategy which is currently being formulated.
BIOSECURITY
This metric assesses the likelihood and measures the impact a biological or biochemical event could have on an investment. Biosecurity is a key business risk and awareness is paramount.
5/10
Why? An outbreak of a calf illness on one farm resulted in a biosecurity incident, that also subsequently impacted on the PKW Calf Rearing Unit. Our specialist veterinarians were called to assist in the resolution of the illness, and the issue was ultimately dealt with satisfactorily.
What's next? PKW Farms has a Biosecurity Plan in place, and this was refreshed following the incident. Biosecurity continues to be an area of on-going focus within the business.
PARININIHI KI WAITOTARA INCORPORATION
43
Whakapono
WHAKAPONO
Adherance to our tikanga and belief in our future
Matua Raymond Edwards and Darryn Ratana at PKW Half Yearly Hui, Kairau Marae.
TE REO USE, UNDERSTANDING, RELEVANCE & PROFICIENCY
Promotion of Te Reo Māori is important for PKW and for the Māori culture as a whole. The organisation has a duty to ensure Te Reo is actively used across all investments.
4
/10
Why? Although Te Reo is used in business conversations, there are some areas where it is not prevalent, such as individual farms and the Novotel. A lack of bilingual signage in business premises and farms identified by number contribute to a low metric score.
What's next? Two farms have been gifted Māori names by local hapū and more are being planned. More bilingual or reo signage in the PKW Whare and a revised naming convention at the Novotel will help make a more visual impact over the next 12 months.
CULTURAL VISIBILITY & PRIDE
The extent to which the investment will have a positive or negative effect on how shareholders and Taranaki Māori view themselves.
4
/10
Why? There is work to be done on how cultural pride is expressed within the business and passed on to shareholders and their whānau, hapū and iwi. Listing the names of the original shareholders in the PKW Whare and the naming of Te Ruru and Te Kāhu were important milestones during the year.
What's next? Ongoing financial investment is required to ensure shareholders can see themselves in the way the organisation presents itself and how it does business. Building relationships with iwi and hapū to support positive change will continue to be key.
<<
44
Whakapono (continued) Adherance to our tikanga and belief in our future
PKW NARRATIVE
Ensuring that investment opportunities align with PKW's vision, core values and strategic approach. The strength of that alignment, along with the rate of reinforcement, has an impact on the metric score.
6/10
Why? Strategic alignment is a central tenet to all PKW decision-making but reinforcing those key messages and telling the PKW story will improve this score. The production of shareholder videos providing an insight into some investment areas recently were well-received.
What's next? Initiatives to share why the organisation holds the values it does will be on-going, along with telling stories about our investments and strategies.
ACCESS AND CONNECTION TO LAND
A sense of connection to the whenua is important for PKW shareholders so this metric is designed to assess if an investment has a positive or negative impact on that desire.
3/10
Why? There is not currently any formal mechanism for Taranaki Māori to access the land or to enhance any existing connection that may be in place.
What's next? The intent and desire to provide more physical connection to whenua as well as improving the strength of cultural connections is outlined in the Kaitiakitanga Strategy and will continue to be a focus area moving forward.
WĀHI TAPU
Identification and acknowledgement of wāhi tapu is key to this metric, along with the extent that a site is protected and accessible to whānau and iwi.
5/10
Why? Wāhi tapu on PKW whenua have been identified and protected from farming operations or policies put in place to reduce the impact of business activities (such as only grazing sheep over a large wāhi tapu site which does less damage to the whenua).
What's next? Ensuring sites are accessible and fostering connections with whānau are part of the Kaitiakitanga Strategy and formal policies are being put into place.
PARININIHI KI WAITOTARA INCORPORATION
45
Whanaungatanga / Kotahitanga
WHANAUNGATANGA/KOTAHITANGA
Belief in collective action with trusted relationships
PKW shareholder whānau at PKW AGM, Owae Marae.
ATTRACTION AND RETENTION OF KEY STAFF
Identifying key staff and ensuring there is a succession plan in place for those roles enables the business to maintain momentum and progress despite any changes in the PKW team. Attracting the right people, whose personal aspirations and skillsets complement the Incorporation's strategic aims and goals, is also important to create an effective and efficient workforce.
4
/10
Why? Although key staff roles have been identified, a succession plan is not in place should current staff members leave the organisation. Management is carried out on a reactive basis to staff losses.
What's next? Establish a proactive succession plan for key roles.
CO-INVESTMENT OPPORTUNITIES
Identifying and creating potential co-investment opportunities for other Taranaki Māori groups is strategically important to PKW.
4/10
Why? Currently the PKW investment portfolio is heavily weighted towards opportunities where the Incorporation is the only investor (for example, PKW Farms). This year did see the launch of Ngāmotu Hotels LP, a partnership between three Taranaki Māori entities—Parininihi Ki Waitotara Incorporation (PKW Inc), Te Atiawa Iwi Holdings (TAIH) and Taranaki Iwi Holdings (TIH), which has purchased the Novotel New Plymouth.
What's next? Recent announcements of the investment opportunities created with Tai Hekenga (10 Taranaki iwi investment partners) and Te Pūia Tāpapa Fund (26 Māori entities) show the strategic intent behind this metric is being put into action. Further investments will be forthcoming as PKW continues to build relationships with potential and existing partners.
<<
46
Whanaungatanga / Kotahitanga (continued) Belief in collective action with trusted relationships
WORKING CONDITIONS
Establishing a positive working culture and ensuring staff well-being across the entire PKW investment portfolio is important for business success while recognising the importance of a good work life for each individual.
6/10
Why? An industry tool developed by Dairy NZ assesses farms against criteria set out in its Quality Workplaces guide. This assessment consists of five central pillars which are rated bad, good or great. PKW Farms performed favourably but some areas were identified for improvement. Analysis across commercial investments is yet to be established.
What's next? PKW is putting staff well-being at the forefront with a wellbeing framework being launched in the next six months.
EMPLOYMENT OPPORTUNITIES FOR TARANAKI MĀORI
Opportunities within the investment portfolio should be identified to ensure roles are retained where possible and further jobs can be created.
5/10
Why? The portfolio remains balanced with no jobs lost or new roles created.
What's next? Growth within the existing assets and investments portfolio is constrained and expected to remain static moving forward and therefore as the diversification strategy continues to be deployed, opportunities to control a larger pool of employment outcomes will need to be a key consideration.
CAPABILITIES DEVELOPMENT
The extent to which the investment provides opportunities to develop the personal and professional capabilities of both internal workers and other external stakeholders such as young Māori and whānau. Identification of core competencies and a cohesive development plan for individuals is integral.
5/10
Why? A formal PKW matrix is not yet in place and while there are some professional development opportunities across the portfolio, these are not aligned to individual needs or requirements. PKW has launched a cadetship programme in the last year, with two cadets being appointed, one on farm and one in the finance team.
What's next? A process for the formal skill assessment and a subsequent professional development plan for each individual is being drafted. Increased investment in training will address any competency gaps across the workforce. Growing the cadet programme numbers will be a focus moving forward.
Te Kahu Farm Naming Ceremony - Mahuri Tipene (Kuia) and Hinerangi Edwards.
ALIGNED PARTNERS
Divided into two measures, this metric assesses the likelihood of new whānau, iwi and regional new businesses being created or existing SMEs growing as a result of PKW investment. a) Spend with Māori businesses
6/10
Why? More than 10% of the PKW controllable spend is currently reaching Māori businesses (this represents over $1m each year). The organisation has also embedded within its supplier database a means to identify suppliers as Māori and is developing awareness within the community of its desire to engage with more Māori suppliers.
What's next? Continuing to grow awareness will help PKW to reach a goal of 25% of controllable spend being allocated to Māori suppliers / businesses. Based on the three-year PKW procurement plan, PKW has an awareness of what goods or services will be tendered moving forward and therefore identifying what Māori suppliers are available in those spaces will be beneficial.
b) Value for money
4
/10
Why? This score reflects the number of reviews (requests for proposal – RFP) completed and converted into agreements with suppliers against the Procurement Policy's definition of 'value for money'. It also recognises the growth in value add opportunities (such as scholarships and internships) on offer via our supplier network.
What's next? Reviews will continue to be carried out over the next three years and relationships with suppliers strengthened with value-add propositions such as scholarship provision for shareholders and their whānau.
WHANAUNGATANGA/KOTAHITANGA
PARININIHI KI WAITOTARA INCORPORATION
47
48
Brendon Rei and Andy Maruera at PKW AGM, Owae Marare.
20 19 PARININIHI KI WAITOTARA
Incorporation
FINANCIAL STATEMENTS for the year ended 30 June 2019
FINANCIAL STATEMENTS - 30 JUNE 2019 Auditor report
44
FINANCIAL STATEMENTS Committee’s annual report for the year ended 30 June 2018
47
Statement of comprehensive income
48
Statement of financial position
49
Statement of changes in equity
50
Statement of cash flows
51
Notes to the financial statements 1 Corporate information
52
2 Summary of significant accounting policies
52
3 Correction of errors
60
4 Financial risk management
61
5 Critical accounting estimates and judgements
62
6 Revenue
63
7 Other gains / (losses)
63
8 Expenses
63
9 Finance income and expenses
63
10 Income tax expense
64
11 Māori authority credit account
64
12 Trade and other receivables
64
13 Biological assets
65
14 Property, plant and equipment
66
15 Intangible assets
68
16 Equity accounted investments
69
17 Investments in subsidiaries
70
18 Investments
70
19 Investment properties
71
20 Borrowings and Unclaimed Dividends
72
21 Derivative financial instruments
72
22 Net deferred tax assets / (liabilities)
73
23 Trade and other payables
73
24 Share capital
74
25 Reserves and retained earnings
74
26 Dividends
75
27 Contingencies
75
28 Commitments
75
29 Related party transactions
77
30 Subsequent events
78
31 Statement of estimated current market values (unaudited)
79
50
Independent Auditor’s Report Independent Auditor’s Report To the Shareholders of Parininihi ki Waitōtara Incorporation
Report on the audit of the consolidated financial statements
Opinion
To the Beneficiaries of Parininihi ki Waitōtara Trust
In our opinion, the accompanying consolidated Wereport have audited the accompanying consolidated Report on the audit of the performance financial statements of Parininihi ki Waitōtara financial statements which comprise: Incorporation (the Incorporation’) and its — The consolidated statement of financial position subsidiaries (‘the 'Group') on pages 4 47toto31: 79: Opinion as at 30 June 2019; i. Present fairly inInallour material respects the Group’s performance opinion, the accompanying Westatements have audited the accompanying performance — The consolidated of comprehensive financial position as atof30Parininihi June 2019 and its report ki Waitōtara Trust (the income, Trust) onchanges report which comprise: in equity and cash flows for financial performance cash flows for the pages 3and to 13: the year then ended; and — The statement of financial position as at 30 year ended on that date; and June 2019; i. Present fairly in all material respects Trust’s —the Notes, including a summary of significant ii. Comply with New Zealand Equivalents to accounting policies and other explanatory financial position as at 30 June 2019 and its — The statements of financial performance and International Financial Reporting Standards information. financial performance and cash flows for the cash flows for the year then ended; Reduced Disclosure Regime. year then ended on that date; — Notes, including a summary of significant ii. Comply with PBE Simple Format Reporting accounting policies and other explanatory Standard - Accrual (Not For Profit); and information; and report the service performance Basis iii. forSuitably opinion — The statement of service performance and information required by Public Benefit Entity entity information on page 3. We conducted our auditFinancial in accordance with Standard International Standards Reporting 48 ('PBE FRS on 48')Auditing (New Zealand) (‘ISAs (NZ)’). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. in the statement of service performance. We are independent of the Group in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Basis for opinion IESBA Code.
We conducted ourare audit in accordance with Standards onforAuditing (New Zealand) (‘ISAs (NZ)’), and Our responsibilities under ISAs (NZ) further described in theInternational auditor’s responsibilities the audit of the the audit of information PBE 48 requires to be included in the statement of service performance, in consolidated financial statements section of ourFRS report. accordance with the International Standard on Assurance Engagements (New Zealand) 3000 (Revised) Our firm has also provided other services to the Group in relation to Advisory services. Subject to certain Assurance Engagements Other than Audits or Reviews of Historical Financial Information ('(ISAE (NZ) 3000'). restrictions, partners and employees of our firm may also deal with the Group on normal terms within the We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our ordinary course of trading activities of the business of the Group. These matters have not impaired our opinion. independence as auditor of the Group. The firm has no other relationship with, or interest in, the Group. We are independent of the Trust 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 Emphasis Code’), of andmatter we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We draw attention to Note 3 to the consolidated financial statements which describes the prior period errors and the restatement ofOur theresponsibilities comparative financial AsISAE part (NZ) of our3000 auditare of further the 2019 financial in statements, under information. ISAs (NZ) and described the auditor’s responsibilities for we also audited the in Note 3 that wereof applied to amend the 2018 financial statements. theadjustments audit of thedescribed performance report section our report. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to Other than in our capacity auditor we statements have no relationship with,other or interests in,respect the Trust. audit, review, or apply any procedures to the as 2018 financial of the Group than with to the adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2018 financial statements taken as a whole.
-2-
Other information The Committee of Management Members, on behalf of the Group, are responsible for the other information included in the entity’s Annual Report. Our opinion on the consolidated financial statements does not cover any other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Other matter The consolidated financial statements of the Group, for the year ended 30 June 2018, was audited by another auditor who expressed an unmodified opinion on those statements on 20 September 2018.
Use of this independent auditor’s report This independent auditor’s report is made solely to the Shareholders as a body. Our audit work has been undertaken so that we might state to the Shareholders those matters we are required to state to them in the independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Shareholders as a body for our audit work, this independent auditor’s report, or any of the opinions we have formed.
Responsibilities of the Committee of Management Members for the consolidated financial statements The Committee of Management Members, on behalf of the Incorporation, are responsible for:
—
The preparation and fair presentation of the consolidated financial statements in accordance with generally accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial Reporting Standards Reduced Disclosure Regime);
—
Implementing necessary internal control to enable the preparation of a consolidated set of financial statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
—
Assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations, or have no realistic alternative but to do so.
PARININIHI KI WAITOTARA INCORPORATION - FINANCIAL STATEMENTS
51
52
Auditor’s responsibilities for the audit of the consolidated financial statements Our objective is:
—
To obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error; and
—
To issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs NZ will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. A further description of our responsibilities for the audit of these consolidated financial statements is located at the External Reporting Board (XRB) website at: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-7/ This description forms part of our independent auditor’s report.
KPMG Tauranga 6 September 2019
COMMITTEE’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
2019 $'000
REVIEW OF OPERATION Net profit of the Group for the year ended 30 June 2019
15,085
Add retained earnings as at 1 July 2018
169,011
Closing retained earnings
184,096
Less dividend declared 5 July 2019
(1,737)
Adjusted retained earnings
182,359
It is not proposed to make any transfer to reserves. THE STATE OF THE GROUP’S AFFAIRS AT 30 JUNE 2019 WAS: Assets totalled
316,032
THESE WERE FINANCED BY: Shareholder's equity
257,267
Liabilities
58,765
TOTAL EQUITY AND LIABILITIES 316,032
The business of the Incorporation is managing the interests of its Māori shareholders under the Te Ture Whenua Māori Act 1993. The nature of the Incorporation's business has not changed during the year. The financial report was authorised for issue and signed on behalf of the Committee, dated 6 September 2019. For and on behalf of the Committee of Management.
HINERANGI RAUMATI-TU'UA
TAARINGAROA NICHOLAS
Chair
Chair Audit and Risk Committee
6 September 2019
6 September 2019
PARININIHI KI WAITOTARA INCORPORATION - FINANCIAL STATEMENTS
53
54
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2019
Restated 2019 2018 Notes $â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000 Includes sales mainly relating to milk proceeds, lease income received from our whenua and income from our crayfish
Revenue
6
28,229
26,546
Other gains / (losses)
7
6,414
(1,159)
Expenses
8
(17,321)
(17,224)
Finance costs - net
9
(2,565)
(2,684)
16
2,269
1,784
Profit before income tax
17,026
7,263
Income tax expense
10
(1,941)
(1,687)
Profit after income tax
15,085
5,576
Costs from our financier Rabobank
Our share of suplus for the year from Port Nicholson Fisheries LP, Port Nicholson Facilities LP, Mangaoapa Station (forest) and the Ngamotu Hotels LP (Novotel).
Share of profit from joint ventures
Includes gains on the fair value of our whenua
Includes costs mainly relating to farming operations and administration costs of Parininihi ki Waitotara
Other comprehensive income: Cash flow hedges
25,(a)
(386)
(114)
Revaluation of PPE - unimproved land
25,(a)
(4,608)
-
Other comprehensive income for the year, net of tax
(4,994)
(114)
Total comprehensive income for the year
10,091
5,462
For and on behalf of the Committee of Management these financial statements are authorised for issue on 6 September 2019.
HINERANGI RAUMATI-TU'UA Chair 6 September 2019
TAARINGAROA NICHOLAS Chair Audit and Risk Committee 6 September 2019
The above statements of comprehensive income should be read in conjunction with the accompanying notes.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019
Notes Money owed to Parininihi ki Waitotara by our customers Livestock owned by Parininihi ki Waitotara Crayfish quota and other intangible assets owned by owned by Parininihi ki Waitotara Investment in Port Nicholson Fisheries LP, Port Nicholson Facilities LP, Mangaoapa Station (forest) and NgÄ motu Hotels LP (Novotel) Includes shares in Fonterra and fertiliser companies
ASSETS Current assets Cash and cash equivalents Trade and other receivables Biological assets Total current assets Non-current assets Property, plant and equipment Intangible assets Investment in joint ventures Investments in equity instruments Investment properties - unimproved lease land Investment properties - commercial and rural Total non-current assets
12 13
Money owed to our suppliers
Includes borrowings from Rabobank and Unclaimed dividends
Represents unrealised movment on interest rate hedges and milk price futures
The net worth of Parininihi ki Waitotara as measured in the Group financial accounts
7,090 5,025 10,318 22,433
Restated 2018 $'000
6,851
4,560 10,529 21,940
14 15 16 18 19 19
112,974 15,877 10,471 12,827 137,661 3,789 293,599 316,032
127,727
23
2,147 575 712 3,434
4,334 1,043
51,360 1,456 2,515 55,331 58,765 257,267
65,433
Total assets Accounting value of our whenua tupuna
2019 $'000
15,962
5,464 18,170 128,177 4,220 299,720 321,660
LIABILITIES Current liabilities Trade and other payables Current tax payable Derivative financial instruments Total current liabilities Non-current liabilities Borrowings and unclaimed dividends Derivative financial instruments Deferred tax liabilities Total non-current liabilities Total liabilities Net assets EQUITY Share capital Reserves Retained earnings Total equity
The above balance sheets should be read in conjunction with the accompanying notes.
21
20 21 22
24 25,(a) 25,(b)
5,549 67,622 184,096 257,267
655
6,032
981 2,038 68,452 74,484
247,176
5,549 72,616 169,011 247,176
PARININIHI KI WAITOTARA INCORPORATION - FINANCIAL STATEMENTS
55
56
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2019
Attributable to equity holders of the Incorporation
Notes Balance at 1 July 2017 (as perviously reported) Adjustment on correction of error
Balance as at 1 July 2017 (Restated*)
Profit for the year (Restated)
Cash flow hedges Total comprehensive income (Restated)
Dividends provided
3
Share capital $'000
Capital / revaluation reserve $'000
Cash flow hedge reserve $'000
Retained earnings $'000
Total equity $'000
5,549
73,937
(1,207)
161,742
240,021
-
73,937
(1,207)
3,250 164,992
3,250 243,271
-
-
(114) (114)
5,575 5,575
5,575 (114) 5,461
(1,557) (1,557) 169,011
(1,557) (1,557) 247,175 247,176 15,085 (4,608) (386) 10,091 257,267
5,549
25,(a)
-
26
-
-
Balance as at 30 June 2018 (Restated)
5,549
73,937
(1,321)
Balance as at 1 July 2018
5,549
-
73,937 (4,608) (4,608)
(1,321) (386) (386)
169,011 15,085 15,085
5,549
69,329
(1,707)
184,096
Total transactions with owners
Profit for the year Revaluation of PPE - unimproved land Cash flow hedges Total comprehensive income Balance as at 30 June 2019
25,(a)
* Certain amounts shown here do not correspond to the 2018 financial statements and reflect adjustments made, refer to Note 3.
The above statements of changes in equity should be read in conjunction with the accompanying notes.
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019
Statement of cash flows shows where cash has been paid and received. The statement shown is split in three parts; operational activities, investing activities and financing activities.
2019 2018 $’000 $’000 Cash flows from operating activities Receipts from customers 30,236 27,472 Interest received 219 117 Income tax paid (1,856) (838) Payments to derivative instruments (161) Payments to suppliers (11,815) (12,311) Payments to employees (3,703) (3,547) Interest paid (2,845) (2,234) GST paid (2,283) (1,268) Net cash inflow from operating activities 7,792 7,391 Cash flows from investing activities Receipts for property, plant and equipment Payments for property, plant and equipment Payments for investments Receipts from sale of investments Receipts from sale of investment property Receipt of dividends Receipts from joint ventures Payments to joint ventures Net cash inflow / (outflow) from investing activities
12,009 948 (3,353) (6,782) (26) (139) 922 6 1,261 - 957 1,370 1,776 (4,107) 8,076 (3,234)
Cash flows from financing activities Receipt of borrowings Repayment of borrowings Payment of dividends Net cash outflow from financing activities
- 1,680 (14,297) (5,316) (1,332) (1,214) (15,629) (4,850)
Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year
The above statements of cash flows should be read in conjunction with the accompanying notes.
239 (693) 6,851 7,544 7,090 6,851
PARININIHI KI WAITOTARA INCORPORATION - FINANCIAL STATEMENTS
57
58
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
1 CORPORATE INFORMATION Parininihi ki Waitotara Incorporation (the 'Parent') is registered under the Te Ture Whenua Māori Act 1993 and is incorporated in New Zealand. The Parent and its controlled entities are included in the Parininihi ki Waitotara Incorporation Group (the 'Group'). 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Basis of preparation The Group financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand and section 276 of Te Ture Whenua Māori Act 1993. The Group financial statements have been prepared on a historical cost basis except for biological assets, certain investments, investment properties and derivative financial instruments which have been measured at fair value. The information is presented in New Zealand dollars and all values are rounded to the nearest thousand. NZ IFRS - Reduced Disclosure Regime
For the purpose of complying with NZ GAAP, the Group is eligible to apply Tier 2 For-Profit Accounting Standards (New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime ("NZ IFRS RDR")) on the basis that it is not publically accountable and is not a large for-profit public sector entity. The Group has elected to report in accordance with NZ IFRS RDR and has applied disclosure concessions. The consolidated financial statements of Parininihi ki Waitotara Incorporation comply with New Zealand equivalents to International Financial Reporting Standards - Reduced Disclosure Regime ("NZ IFRS RDR") and other applicable Financial Reporting Standards, as appropriate for profit oriented entities. Entities reporting The consolidated financial statements for the Group include Parininihi ki Waitotara Incorporation and its controlled entities. Changes in accounting policy and disclosures New and amended standards adopted by the Group. The following standards have been adopted by the Group for the first time for the financial year beginning on or after 1 January 2018, no material impact has resulted from adoption. (i) I FRS 9, 'Financial instruments: Classification and measurement' effective 1 July 2018 without
restatement, in accordance with the transition requirements. This standard sets out the new requirements for classification and measurement, impairment and hedge accounting for financial instruments. The following changes to accounting policies due to application of NZ IFRS 9 have been applied to these financial statements: Classification and measurement of financial assets The Group classifies its financial assets as subsequently measured at either amortised cost of fair value depending on the Group's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. On adoption of NZ IFRS 9, investments previously classified as loans and receivables are now classified as financial assets at amortised cost. Classification and measurement of financial liabilities Classification of financial liabilities remained unchanged for the Group. Financial liabilities continue to be measured at amortised cost. Changes to impairment of financial assets The NZ IFRS 9 impairment requirements are based on an expected credit loss model, replacing the incurred loss methodology under NZ IAS 39. The Group applies the simplified approach for trade and other
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) receivables, which requires the lifetime expected credit losses to be applied when measuring the loss allowance. The impact of adopting NZ IFRS 9 has not had a material impact on the loss allowance. (ii) I FRS 15, 'Revenue from Contracts with Customers', effective 1 July 2018. NZ IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including NZ IAS 18 Revenue and NZ IAS 11 Construction Contracts and related interpretations. All other accounting policies have been applied on a basis consistent with prior year. (b) Principles of consolidation (i) Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Parent and the results of all subsidiaries as at and for the period ended 30 June each year (the Group). Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and affect of potential
voting rights that are currently exercisable or convertible are considered when assessing whether a Group controls another entity. The financial statements of the subsidiaries are prepared for the same reporting period as the Parent, using consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.
changes in the Group's share of net assets of the joint venture.
Goodwill relating to a joint venture
is included in the carrying amount of the investment and is not
amortised. After application of the equity method, the Group
determines whether it is necessary to recognise any impairment
loss with respect to the Group's net investment in joint ventures.
Goodwill included in the carrying amount of the investment in joint
ventures is not tested separately; rather the entire carrying amount of the investment is tested for
impairment as a single asset. If
Subsidiaries which form part of the Group are consolidated from the date on which control is transferred to the Group.
impairment is recognised, the
They are de-consolidated from the date that control ceases.
venture post-acquisition profits or
lntercompany transactions, balances and unrealised gains on transactions between Group entities are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. (ii) Joint ventures - Jointly controlled entities The Group's investments in joint ventures are accounted for using the equity method in the consolidated financial statements. Under the equity method, investments in joint ventures are carried in the consolidated statement of financial position at cost plus post-acquisition
amount is not allocated to the goodwill of the joint venture.
The Group's share of its joint
losses is recognised in profit or loss.
When the Group's share of
losses in a joint venture equals
or exceeds its interest in the joint
venture, including any unsecured long-term receivables and loans, the Group does not recognise further losses, unless it has
incurred obligations or made
payments on behalf of the joint venture.
(c) Foreign currency translation (i) Functional and presentation currency
Both the functional and
presentation currency of Parininihi ki Waitotara Incorporation and its
New Zealand controlled entities is
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
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60
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) New Zealand dollars ($). (ii) Transactions and balances Transactions in foreign currencies are initially recorded by applying the exchange rates ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. (d) Revenue recognition (i) Rental income Rental income is recognised on a straight line basis over the term of the lease. Rent is received biannually on leased unimproved land. (ii) Milk proceeds The Group sells milk to Fonterra and has entered into milk price future contracts during the year on a per dollar per kilogram basis. The sale of milk is considered to contain a single performance obligation which is satisfied upon control of the milk transferring to Fonterra at the point in time the milk is extracted from the farm
milk vat into a tanker. Milk revenue is recognised at either the latest published forecast milk price, or the agreed milk price future contract. (iii) Quota lease Quota is leased based on annual catch entitlement which is determined annually. Quota lease revenue is recognised when the amount receivable can be measured reliably. (iv) Other revenue Livestock revenue is recognised on slaughter or pick up of the animals which is when control of the livestock transfers to the customer. Abattoir customers raise buyer created invoices based on the final weight of the livestock after slaughter, while other third parties are invoiced based upon agreed terms. Payment terms are generally 14 days after invoice. Interest revenue is recognised using the effective interest method. Dividend revenue is recognised when the right to receive payment is established. (e) Income tax The income tax expense charged to the statement of comprehensive income includes both the current year's provision and the income tax effect of: •T axable temporary differences, except those arising from initial recognition of goodwill and other assets that are not depreciated; and
•D eductible temporary differences to the extent that it is probable that they will be utilised. Temporary differences arising from transactions, other than business combinations, affecting neither accounting nor taxable profit are ignored. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the group and it is probable that the temporary difference will not reverse in the foreseeable future. Tax effect accounting is applied on a comprehensive basis to all timing differences using the liability method. A deferred tax asset is only recognised to the extent that it is probable there will be future taxable profit to utilise temporary differences. Following the changes to subpart HI of the Income Tax Act 2004, an election was made to become a Māori Authority, for tax purposes, with effect from 1 July 2004. The income tax rate applicable for the current and comparative financial year was 17.5%. Distributions to Incorporation shareholders are no longer deductible for tax purposes. Any distribution of post 1 July 2004 reserves will include Māori Authority Credits of up to 17.5% of the gross taxable amount in
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
values. The fair value of financial
the hands of shareholders. Any distribution of pre 1 July 2004 reserves is tax free in the hands of shareholders.
future contractual cash flows at the
(f) Goods and Services Tax (GST) The profit and loss component of the statement of comprehensive income has been prepared so that all components are stated exclusive of GST. All items in the statement of financial position are stated net of GST, with the exception of receivables and payables, which include GST invoiced. (g) Fair value estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure
liabilities for disclosure purposes is estimated by discounting the current market interest rate that is available to the Group for similar financial instruments.
At each reporting date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. If the recoverable amount of a cash generating unit is estimated to be less than its carrying amount, the carrying amount of the cash generating unit is reduced to its recoverable amount.
The fair value of financial
An impairment loss is recognised
markets (such as publicly traded derivatives, and trading and available-for-sale securities) is
immediately in the statement of comprehensive income. Where an impairment loss subsequently reverses, the carrying amount
based on quoted market prices at
of the asset is increased to the
balance date. The quoted market
revised estimate of its recoverable
price used for financial assets held by the Group is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price. The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for expected credit losses. (j) Biological assets
(h) Impairment
purposes.
instruments traded in active
(i) Trade and other receivables
amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset. The reversal of an impairment loss is recognised immediately in income.
(i) Valuation of livestock Livestock at balance date includes dairy cattle, beef cattle and sheep and they are valued at fair value. Subsequent fair value changes are recognised in profit or loss. . Risk management strategies (i) Environmental and climatic risks The Group is exposed to climatic and other environmental risks. The Group's geographic spread of farms allows a degree of mitigation against adverse climatic (eg: drought and flooding) and environmental (eg: disease) effects at a regional level. (ii) Commodity price risk The Group is exposed to risks arising from fluctuations in the price and sales volume of livestock and dairy produce. (iii) Financing risk The nature of livestock farming means that most of the Group's agricultural revenue is received in the second half of the financial year, whereas financial expenses are incurred throughout the year. The Group manages this risk through budgeting and
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
61
62
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) actively managing working capital requirements, as well as maintaining credit facilities at levels sufficient to meet working capital requirements. (k) Property, plant and equipment Property, plant and equipment is stated at historical cost less depreciation, except unimproved land which is stated at fair value. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Fair value is determined annually using an appropriate valuation methodology. 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 Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
Land is not depreciated. Depreciation on other assets is calculated using the straight-line and diminishing value methods to allocate their cost, revalued or net book value amounts to their residual values over their estimated useful lives, as follows: (see table below) The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount (note 2(h)). Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the statement of comprehensive income or other comprehensive income if related to unimproved land.
(ii) Computer software Costs associated with maintaining computer software programmes are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets when the following criteria are met: â&#x20AC;˘ t here is an ability to use or sell the software product; â&#x20AC;˘ i t can be demonstrated how the software product will generate probable future economic benefits; â&#x20AC;˘ t he expenditure attributable to the software product during its development can be reliably measured.
(I) Intangible assets (i) Fishing quota The fishing quota is initially recognised at cost. The quota is
Accounting rates for property, plant and equipment
regarded as having an indefinite useful life because there is no foreseeable limit to the period over which they are expected to be useful. They are subsequently not amortised, but tested annually for impairment.
Straight Line
Diminishing Value
Buildings
1.03% - 33.33%
4.16% - 21.05%
Plant and equipment
2.7% - 4%
2% - 67%
Furniture and fittings
2% - 30%
3% - 67%
Motor vehicles
-
8% - 30%
Leasehold improvements
1.01% - 20%
5% - 16%
(m) Financial instruments A financial instrument is recognised if the Group becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Group's contractual rights to the cash flows from the financial assets expire or if the Group transfers the financial asset to another party without retaining control or substantially all risk and rewards of the asset. Regular way purchases and sales of financial assets are accounted for at trade
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) date, i.e., the date that the Group commits itself to purchase or sell the asset. Financial liabilities are derecognised if the Group's obligations specified in the contract expire or are discharged or cancelled. Financial instruments comprise trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Financial instruments are recognised initially at fair value plus transaction costs unless they are carried at fair value through profit or loss in which case the transaction costs are recognised in the profit or loss. The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at balance date. The quoted market price used for financial assets held by the Group is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price. The subsequent measurement of financial assets depends on their classification. The Group classifies financial assets into categories depending on their contractual cash flow characteristics and the Group's business model for managing financial assets. The categories of financial assets are:
(i) Financial assets at amortised cost Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/ (losses) together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the statement of profit or loss. (ii) Financial assets at fair value through other comprehensive income (FVOCI) Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other
gains/(losses) and impairment expenses are presented as a separate line item in the statement of profit or loss. (iii) Financial assets at fair value through Profit or Loss (FVPL) Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognised in profit or loss and presented net within other gains/ (losses) in the period in which it arises. Financial liabilities The Group's financial liabilities include trade and other payables, loans and borrowings. The Group classifies its financial liabilities as financial liabilities at amortised cost. The classification of financial liabilities is determined on initial recognition. All financial liabilities are recognised initially at fair value, and in the case of loans and borrowings, include directly attributable transaction costs. All financial liabilities of the Group are subsequently measured at amortised cost. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit loss. Impairment of receivables From 1 July 2018, the group assesses on a forward-looking basis the expected credit losses associated with its debt
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
63
64
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables. The recoverable amount of the Group's investments in receivables carried at amortised cost is calculated as the present value of estimated future cash flows. Impairment losses on an individual basis are determined by an evaluation of the exposures on an instrument by instrument basis. All individual instruments that are considered significant are subject to this approach. (n) Investment properties Investment property, which includes unimproved land, and commercial and rural land and buildings that earn rental income or appreciate in value, are initially measured at cost and subsequently measured at fair value. Gains or losses arising from changes in the fair value of investment property are included in the statement of comprehensive income in the period in which they arise.
(o) Trade and other payables Trade and other payables are carried at cost and due to their short term nature they are not discounted. They represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition. (p) Borrowings Borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the borrowing. After initial recognition, interest bearing loans and 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. (q) Derivatives and hedging activities The Group uses derivative financial instruments to hedge its risks associated with interest rate and the Fonterra farmgate milk price fluctuations. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured to fair value.
Derivatives are carried as assets when their fair value is positive and as liabilities when their fair value is negative. The fair values of interest rate swaps and milk price futures are determined using a valuation technique based on cash flows discounted to present value using current market interest rates. Any gains or losses arising from changes in the fair value of derivatives, except for those that qualify as cash flow hedges are taken directly to profit or loss for the year. Cash flow hedges are used when they hedge the exposure to variability in cash flows that are attributable either to a particular risk associated with a recognised asset or liability or to a forecast transaction. The Group currently has cash flow hedges attributable to payment of interest on borrowings, and the Fonterra final farmgate milk price. The effective proportion of the gain or loss on the hedging instrument is recognised in other comprehensive income, while the ineffective portion is recognised in profit or loss. The Group tests each of the designated cash flow hedges for effectiveness prospectively using the matched terms method. Interest rate swaps are tested quarterly and milk price futures are tested annually. Testing ensures that the hedging relationship meets all of the following hedge effectiveness requirements there is an economic relationship between the hedged item and the hedging instrument: the effect
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) of credit risk does not dominate the value changes that result from the economic relationship: and the hedge ratio in the hedge relationship is the same as the quantity of the hedged item and of the hedging instrument that the Group uses for hedging purposes. At each balance date, the Group measures ineffectiveness using the dollar offset method. For cash flow hedges, any ineffective portion is taken to other expenses in the statement of comprehensive income. If the hedging instrument is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked (due to it being ineffective), amounts previously accumulated in reserves remain in reserve until the forecast transactions occurs, at which time it is transferred to profit or loss. (r) Share capital Ordinary shares are classified as equity. (s) Dividend distribution 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. Any dividend distribution to shareholders is recognised as a liability in the Group financial statements in the period in which
the dividends are approved by the Parent's shareholders. Dividends payable to shareholders where we do not have current contact details are held in Trust. On contact from a shareholder, or on approved succession of a shareholder, funds held in Trust are paid. (t) Employee benefits (i) Wages and salaries, annual leave and sick leave The provision for employee entitlements is recognised as a liability in the statement of financial position. These benefits include salaries, wages and annual leave. Where the payment is expected to exceed 12 months of balance date, the liability is recorded at its present value. Where the payment is expected to be less than 12 months, the provision is the amount expected to be paid. (u) Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. (i) Group as a lessee Operating lease payments are recognised as an expense in the statement of comprehensive income on a straight-line basis over the lease term. Operating
lease incentives are recognised as a liability when received and subsequently reduced by allocating lease payments between rental expense and reduction of the liability. (ii) Group as a lessor Leases in which the Group retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as rental income. (v) Comparative balances Comparative balances have been reclassified and restated to conform with changes in presentation and classification adopted in the current period.
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
65
66
3 CORRECTION OF ERRORS A review of the Group's investments in joint ventures identified that the woodlots in the Mangaoapa Station Partnership had not been fair valued since inception of the investment in accordance with the accounting policies of the Group. The Group has since undertaken valuations for prior periods by a market specialist. This has resulted in an increase in the carrying value of investments in joint ventures and an increase in the deferred tax liability relating to the increase. Additionally, the increase in the fair value of the investment resulted in an increase in the share of profit from joint ventures through profit or loss, all affecting prior periods. A review of land and buildings held by PKW Farms LP identified land that had incorrectly been accounted for as Property, Plant and Equipment rather then Investment Property. This resulted in a decrease in land held as Property, Plant and Equipment, and an increase in land held as Investment Property. Additionally on reclassification, the Investment Property was revalued to its fair value, resulting in an increase in the fair value gain on investments through profit or loss, all affecting prior periods. The errors have been corrected by restating each of the affected financial statement line items for the prior periods, as follows:
Impact on equity (increase/(decrease))
As at 30 June 2018 Restated $â&#x20AC;&#x2122;000
As at 1 July 2017 Restated $â&#x20AC;&#x2122;000
-
(730)
804
2,824
-
1,650
Deferred tax liabilities
141
494
Net assets
663
3,250
663
3,250
Share of profit (loss) from joint ventures
804
-
Profit before income tax
804
-
(141)
-
Profit after income tax
663
-
Total comprehensive income for the year
663
-
Non-current assets Property, plant and equipment Investments in joint ventures Investment properties Non-current liabilities
Equity Retained earnings Impact on statement of comprehensive income (increase/(decrease))
Income tax expense
4 FINANCIAL RISK MANAGEMENT
(a) Financial instruments by category
Financial assets as per statement of financial position At 30 June 2019 Investments Accounts receivable Milk price futures collateral Cash and cash equivalents
At 30 June 2018 (Restated) Investments Accounts receivable Cash and cash equivalents
Financial liabilities as per statement of financial position
At 30 June 2019 Borrowings Derivative financial instruments Trade and other payables
At 30 June 2018 (Restated) Borrowings Derivative financial instruments Trade and other payables
Assets at fair value through profit or loss $'000
Financial Assets at amortised cost $'000
12,827 12,827
4,618 298 7,090 12,006
18,145 18,145
4,507 6,851 11,358
Cash Flow Hedge $'000
Other Financial Liabilities measured at amortised cost $'000
2,168 2,168
51,360 203 51,563
1,636 1,636
65,433 6 65,439
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
67
68
5 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
of assets and liabilities within the next financial year are addressed below.
The preparation of the financial statements requires the Committee of Management and Management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. The Committee of Management and Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. The Committee of Management and Management bases its judgements and estimates on historical experience and on other various factors it believes to be responsible under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources.
(i) Unimproved lease land
The Committee of Management and Management has identified the following critical accounting policies for which significant judgements, estimates and assumptions are made. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods. Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial statements. (a) Critical accounting estimates and assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts
Parininihi ki Waitotara Incorporation recognises unimproved lease land in its statement of financial position. The land is valued internally by Management using a discounted cash flow model. The growth rate and discount rate applied in this model is reviewed by PwC. (b) Critical judgements in applying the entityâ&#x20AC;&#x2122;s accounting policies (i) Taxation The Group's accounting policy for taxation requires Management to make various judgements as to the types of arrangements considered to be a tax on income in contrast to an operating cost. Judgement is also required in assessing whether deferred tax assets and certain deferred tax liabilities are recognised in the statement of financial position. Deferred tax assets, including those arising from un-recouped tax losses and temporary differences, are recognised only where it is considered more likely than not that they will be recovered, which is dependent on the generation of sufficient future taxable profits. Deferred tax liabilities arising from temporary differences in investments, caused principally by retained earnings held in foreign tax jurisdictions, are recognised unless repatriation of retained earnings can be controlled and are not expected to occur in the foreseeable future. Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on Management's estimates of future cash flows. These depend on estimates of future production and sales volumes, operating
costs, restoration costs, capital expenditure, dividends and other capital management transactions. Judgements are also required about the application of income tax legislation. These judgements and assumptions are subject to risk and uncertainty, hence there is a possibility that changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax liabilities recognised in the statement of financial position and the amount of other tax losses and temporary differences not yet recognised. In such circumstances, some or all of the carrying amounts of recognised deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or charge to the statement of comprehensive income.
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
69
Restated 6 REVENUE 2019 2018 $’000 $’000 Rental income 7,315 7,275 Milk proceeds 15,674 13,879 Fisheries lease income 1,979 1,729 Other income 3,261 3,663 28,229 26,546
7 OTHER GAINS / (LOSSES) Restated 2019 2018 $’000 $’000 Gain / (loss) on disposal of property, plant and equipment 566 (63) Gain / (loss) on investments at fair value (4,654) (1,804) Gain / (loss) on investments at cost 186 (1) Gain on investment property at fair value 10,319 709 Loss on foreign exchange (3) 6,414 (1,159)
8 EXPENSES 2019 2018 $’000 $’000 Auditors' remuneration 88 116 Depreciation 1,698 1,734 Employee benefits 3,757 3,731 Farm operating expenses 8,663 8,341 Lease expenses 345 420 Members fees 387 306 Other expenses 2,298 2,468 Amortisation 85 108 Total expenses 17,321 17,224
9 FINANCE INCOME AND EXPENSES 2019 2018 $’000 $’000 Finance costs Finance income Net finance costs
2,801 (236) 2,565
2,812 (128) 2,684
70
10 INCOME TAX EXPENSES
2019 $’000
Restated 2018 $’000
(a) Income tax expense Income tax is comprised of: Current tax on profits for the year Adjustments in respect of prior years Deferred tax (benefit) / expense Income tax expense Net gain / (loss) on revaluation of cash flow hedges Profit from continuing operations before income tax expense Tax at the New Zealand tax rate (i) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Other permanent differences Changes in fair value of investments Over / (under) provided in prior years Income not subject to tax Expenses not deductibe for tax purposes Income tax expense
1,441 1,240 23 50 477 397 1,941 1,687 (77) (24) 17,026 2,987
7,263 1,398
143 (1,332) 3 (56) 196
4 186 87 7 5
1,941
1,687
(i) The Group is taxed at the Māori authority tax rate of 17.5%, however some subsidiary entities of the parent are taxed at the corporate tax rate of 28%.
11 MĀORI AUTHORITY CREDIT ACCOUNT
2019 $’000
2018 $’000
Through direct shareholding Through indirect shareholding
9,599 -
7,576 -
12 TRADE AND OTHER RECEIVABLES
2019 $’000
2018 $’000
Accounts receivable 4,614 Milk price futures collateral 298 Prepayments 77 Dollar rewards 36 5,025
4,507 37 16 4,560
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
71
13 BIOLOGICAL ASSETS 2019 2018 Livestock $’000 $’000 Cattle Balance at the beginning of the year Increase due to purchases Decrease due to sales Changes in fair value Balance at the end of the year
10,515 25 (2,252) 1,980 10,268
10,945 401 (2,005) 1,174 10,515
Sheep Balance at the beginning of the year Increase due to purchases Decrease due to sales Changes in fair value Balance at the end of the year Biological assets balance at the end of the year
14 10 56 11 (32) (18) 12 11 50 14 10,318 10,529 2019 Units
2018 Units
1,498 945 3,947 716 295 7,401
1,075 1,197 4,131 600 742 7,745
278 2 4 284
104 4 108
Quantity of cattle on hand Rising 1 year heifers Rising 2 year heifers Cows Rising 1 year bulls Rising 2 year steers Quantity of sheep on hand Ewes Two tooth rams Breeding rams Biological assets of the Group comprise dairy cattle, beef cattle and sheep.
At 30 June 2019 Cost Valuation Accumulated depreciation Net book amount
Year ended 30 June 2019 Opening net book amount Revaluation Additions Disposals Transfers from WIP Impairment charge recognised in profit and loss Depreciation charge (note 8) Closing net book amount
At 30 June 2018 Cost Valuation Accumulated depreciation Net book amount
Cost Valuation Accumulated depreciation Net book amount
At 30 June 2017 (restated, see note 3)
847 847
385 847 (385) 847
385 385
546 546
42,181 42,181
51,511 (9,330) 42,181
51,511 51,511
47,937 47,937
$'000
$'000
land
Freehold
WIP
Capital
17,915 (4,275) 13,640
14,872 594 (685) (455) (686) 13,640
18,521 (3,649) 14,872
18,092 (2,978) 15,114
$'000
Buildings
7,391 (3,454) 3,937
3,940 791 (232) (562) 3,937
7,359 (3,419) 3,940
7,484 (2,781) 4,703
$'000
Plant and
equipment
275 (124) 151
178 (27) 151
375 (197) 178
375 (166) 209
$'000
fittings
Furniture &
1,947 (845) 1,102
1,114 211 (64) (159) 1,102
1,852 (738) 1,114
1,863 (613) 1,250
$'000
Motor
vehicles
7,856 (1,478) 6,378
6,381 955 (694) (264) 6,378
7,860 (1,479) 6,381
6,894 (1,255) 5,639
$'000
Leasehold
improvements
land
44,738 44,738
49,346 (4,608) 44,738
49,346 49,346
49,346 49,346
$'000
Unimproved
78,412 44,738 (10,176) 112,974
127,727 (4,608) 3,398 (11,005) (385) (455) (1,698) 112,974
87,863 49,346 (9,482) 127,727
83,191 49,346 (7,793) 124,744
Total
$'000
72 14 PROPERTY, PLANT AND EQUIPMENT
14 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
(a) Unimproved land Unimproved land is stated at fair value which has been assessed using a discounted cash flow model, refer to note 19 for further detail. (b) Leasehold improvements Leasehold improvements are derived from the purchase of improvements to the land made by Lessee's. (c) Reclassification Following a review of the Group's assets, management identified an intangible asset that should be classified separately under intangible assets. As a result, the ERP software has been reclassified from plant and equipment to intangible assets. The Group continues to recognise the remaining low value intangible software assets as plant and equipment.
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
73
74
15 INTANGIBLE ASSETS Computer
Fishing
$'000
$'000
$'000
Opening net book amount Reclassifications Accumulated amortisation Net book amount
460 (118) 342
15,620 15,620
15,620 460 (118) 15,962
At 30 June 2019 Opening net book amount Amortisation charge Closing net book amount
342 (85) 257
15,620 15,620
15,962 (85) 15,877
460 (203) 257
15,620 15,620
16,080 (203) 15,877
software
At 30 June 2018
At 30 June 2019 Cost Accumulated amortisation and impairment Net book amount
quota
Total
During the 2019 year there were no additions to share quota (2018: nil). There have been no disposals or impairment losses during the year (2018: nil). The fair value of the quota at 30 June 2019 is $50.7m (2018:$45.5m) as supplied by industry specialist Quota Management Systems Limited. During the year the presentation of the Groups Enterprise Resource Planning (ERP) software was moved from property, plant and equipment to intangible assets. There were no additions to the ERP (2018: nil). There have been no impairment losses during the year (2018: nil).
16 EQUITY ACCOUNTED INVESTMENTS Name of entity
Incorporated in
Equity holding
Port Nicholson Facilities Limited Partnership Port Nicholson Fisheries Limited Partnership Mangaoapa Station Partnership Ngāmotu Hotels Limited Partnership
New Zealand New Zealand New Zealand New Zealand
33% 12% 50% 33%
The registered office for both PNF Limited Partnerships' is 132 Tirangi Road, Rongotai, Wellington. The location of business for Mangaoapa Station Partnership is Stratford. The registered office for Ngāmotu Hotels Limited Partnership is Level 13, 36 Customhouse Quay, Wellington.
(a) Joint ventures
2019 $’000
Investment in joint ventures 10,471 10,471
Restated 2018 $’000 5,465 5,465
(b) Movements in carrying amounts Restated 2019 2018 $’000 $’000 Balance 1 July Capital invested Share of profit after tax Cash distribution Carrying amount at the end of the financial year
5,465 5,389 4,107 85 2,269 1,784 (1,370) (1,793) 10,471 5,465
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
75
76
17 INVESTMENTS IN SUBSIDIARIES The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2(b):
Incorporated In Balance date Equity Holding 2019 2018 % % PKW Farms LP New Zealand 30-Jun 100 100 PKW Investments Limited New Zealand 30-Jun 100 100 Companies being removed: Te Oranga Livestock Limited New Zealand 30-Jun 100 100 Companies removed: PKWF 2013 Limited (removed 11 June 2019) New Zealand 30-Jun 100 100 Taranaki Aquagardens Limited New Zealand 31-Mar 100 100 (removed 5 December 2018) JSP Limited (removed 5 December 2018) New Zealand 31-Mar 100 100 PKW Farms LP is in the business of farming. PKW Investments Limited is dormant. Te Oranga Livestock Limited was in the business of livestock trading. The company ceased trading at 30 June 2018 and is in the process of being removed from the Companies Register, this will be completed in late 2019.
18 INVESTMENTS
2019 $â&#x20AC;&#x2122;000
2018 $â&#x20AC;&#x2122;000
Fonterra 11,543 17,198 Rockit Orchard No.2 Limited Partnership 259 25 11,802 17,223 Other financial assets carried at cost 1,025 947 1,025 947 12,827 18,170
Fonterra Co-operative Group Limited is measured at fair value using the listed share price at balance date. Rockit Orchard No.2 Limited Partnership is measured at fair value based on an assessment provided by an independant market specialist.
INVESTMENT PROPERTIES 19
2019 $’000
Unimproved land vestment properties unimproved land Balance at beginning of year 128,177 Net gain in fair value 9,484 137,661 Commercial property Balance at beginning of year 2,570 Additions 69 Disposals (1,335) Net gain / (loss) in fair value (344) 960
Restated 2018 $’000
127,648 529 128,177 2,390 180 2,570
Rural property Balance at beginning of year 1,650 1,650 Net gain in fair value 1,179 2,829 1,650 141,450 132,397 A discounted cash flow model is used to assess the fair value of the lessor's interest in the unimproved land. The growth rates and discount rates applied in this model are reviewed by PwC. The primary assumptions of the model are as follows: • Discount rate of 4.9% (2018: 5.4%); • Cash flows increase at the rate of 1.9% (2018: 2.1%), however they are only uplifted every seven years into the cash flow periods in line with the rental reset periods determined by legislation; • The time horizon is 30 years (2018: 30 years); • An assessment (and therefore potential adjustment) of the projected cash flows at the next rental reset period (being 2023/24), based on market knowledge and matters to be addressed during the next rental review. Commercial and rural properties are carried at fair value, which have been determined based on valuations performed by Telfer Young as at 30 June 2019, and internal valuations performed by the Groups internal registered valuer. The internal valuation methodology has been peer reviewed by Telfer Young at 30 June 2019. Telfer Young is an industry specialist in valuing these types of commercial and rural properties in the Taranaki region. The fair value represents the amount at which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arms length transaction at the date of valuation. In determining fair value, the expected net cash flows applicable to each property have been discounted to their present value using a market determined, risk adjusted, discount rate applicable to the respective asset. The inputs applied in the valuation of the Group's investment properties have been categorised as level 3 in the fair value hierarchy.
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
77
78
BORROWINGS AND UNCLAIMED DIVIDENDS 20
2019 $’000
2018 $’000
Rabobank facility 46,742 60,446 Unclaimed dividends 4,618 4,394 Fonterra shareholder support loan - 593 51,360 65,433 The Group utilises an interest only finance facility of $75m (2018: $75.3m) which includes an undrawn facility of $28.3m (2018: $14.8m) from Rabobank New Zealand Limited. The $75m is split into three facilities ($21m, $9m and $45m), which expire between 30 September 2022 and 20 February 2024. The interest charge on the drawn facility is currently at a variable rate based on an agreed margin over the BKBM rate (daily interbank rate). At 30 June that rate approximated 3.24% per annum (2018: 4.35%). The loan fee on the undrawn amount of the facility is 0.25% per annum. The facility is secured by seven first mortgages over certain leasehold and freehold interest in property and quota, a registered first security agreement over all present and subsequently acquired personal property with a combined priority sum of $364m across all the facilities and unlimited guarantees from Proprietors of Parininihi ki Waitotara Block, PKW Farms LP and PKW Investments Limited, and a general security agreement from PKW Farms LP, Proprietors of Parininhi ki Waitotara Block, PKW Farms GP Limited and PKW Investments Limited. The carrying value of financial assets pledged as collateral as at 30 June 2019 was $175m (2018: $135.7m).
21 DERIVATIVE FINANCIAL INSTRUMENTS
2019 $’000
2018 $’000
Current liabilities Interest rate swaps
712
655
Non-current liabilities Interest rate swaps 1,441 Milk futures 15 Total non-current derivative financial instrument liabilities 1,456 2,168
981 981 1,636
Interest bearing loans of the Group currently bear interest rates between 3.22% and 5.85%. In order to protect against rising interest rates the Group has entered into interest rate swap contracts under which it has a right to pay interest at fixed rates and to receive interest at floating rates. Swaps in place cover approximately 64% (2018: 62%) of the principal outstanding. The fixed interest rates range between 3.18% to 4.8% (2018: 3.37% to 4.8%) and the variable rate ranges from 1.4% to 1.55% above the 90 day bank bill rate, which at balance date was 1.6% (2018: 2.0%). The interest rate swaps require settlement of net interest receivable or payable each 90 days. The settlement dates coincide with the dates on which the interest is payable on the underlying debt. All swaps are matched directly against the appropriate loans and interest expense. They are settled on a net basis. The Group has entered into a cash flow hedge for milk price futures as a result of the variability from the Fonterra final farmgate milk price announced and settled in September each year. The objective of the hedge relationship is to create price certainty around milk price for a portion of the season based on the Fonterra final farmgate milk price determined and settled in September 2020. The futures contract locks in the price for a portion of milk production in the 2020 season and therefore provides some certainty of revenue received.
21 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) The Group has entered into 40 contracts at $6.80 per kilogram of milk solids and 39 contracts at $7.00 per kilogram of milk solids which cover approximately 20% of the Group's share of budgeted production for the next season. The milk price futures are marked to market and cash settled daily at the market price, which at balance date was as $6.78. The swaps and futures are measured at fair value and all gains and losses attributable to the hedged risk are recognised in other comprehensive income. Interest expense is recognised in profit or loss. The inputs applied in the valuation of the Group's interest rate swaps have been categorised as level 2 in the fair value hierarchy.
22 NET DEFERRED TAX ASSETS / (LIABILITIES) Investment properties $’000
Property, plant and equipment $’000
At 1 July 2017 (Restated) 869 Charged / (credited) to the statement 164 of comprehensive income At 30 June 2018 (Restated) 1,033
Livestock $’000
Other $’000
Total $’000
(11) 80
325 135
1,640 398
457 19 476
At 1 July 2018 1,033 476 Charged / (credited) to the statement 662 (248) of comprehensive income At 30 June 2018 1,695 228
TRADE AND OTHER PAYABLES 23
69 460 69 162
460 (99)
231 361
2019 $’000
2018 $’000
Trade creditors 203 Other payables 1,809 Provision for dividend - GST payable / (receivable) 135 2,147
6 2,688 1,557 83 4,334
Due to the short term nature of these payables, their carrying value approximates their fair value.
2,038 2,038 477 2,515
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
79
80
24 SHARE CAPITAL
2019 Shares
2018 Shares
2019 $’000
2018 $’000
Shares authorised, issued and fully paid
1,197,709
1,197,709
5,549
5,549
1,197,709
1,197,709
5,549 5,549
Shares issued have no par value, each shareholder is entitled to a single vote per share.
25 RESERVES AND RETAINED EARNINGS
2019 $’000
(a) Reserves Capital reserve 69,329 Cash flow hedge reserve (1,707) 67,622
Restated 2018 $’000
73,937 (1,321) 72,616
Movements: Capital reserve Balance 1 July Charge to other comprehensive income Balance 30 June
73,937 (4,608) 69,329
73,937 73,937
Cash flow hedge reserve Balance 1 July Charge to other comprehensive income Balance 30 June
(1,321) (386) (1,707)
(1,207) (114) (1,321)
Capital reserve The capital reserve represents capital contributions that have been recognised and accounted for since establishment of the Parent, and the change in fair value of the unimproved land held as property, plant and equipment. Cash flow hedge reserve This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge. These amounts retained in the cash flow hedge reserve at 30 June 2019 are expected to mature and affect profit and loss in subsequent financial periods. (b) Retained earnings Movements in retained earnings were as follows:
2019 $’000
Balance 1 July Net profit for the year Dividends Balance 30 June
169,011 15,085 - 184,096
Restated 2018 $’000 164,992 5,576 (1,557) 169,011
DIVIDENDS 26
On 5 July 2019 the Committee of Management approved a proposed dividend for 2019 of $1.45 per share (2018: $1.30), resulting in a total dividend of $1.737m. See note 30. Subsequent events for further details.
2019 $’000
2018 $’000
- -
1,557 1,557
27 CONTINGENCIES (a) Contingent liabilities There were no contingent liabilities as at 30 June 2019 (2018: nil).
28 COMMITMENTS (a) Capital commitments In 2015 the Group approved a Memorandum of Understanding subject to certain conditions, to invest in TaiHekenga, an iwi-consortium to partner The Port Nicholson Block Settlement Trust (PNBST) in the exercise of PNBST's Treaty settlement rights to the purchase of a portfolio of Crown property assets in central Wellington. As at 30 June 2019 the Group were considering a business case to approve a capital commitment of $4.5m with funds expected to be called before September 2019, this was approved in July 2019. In April 2018, Parininihi ki Waitotara Incorporation committed to invest in Te Puia Tapapa, a fund established by iwi and Māori organisations to invest in significant New Zealand businesses. As at 30 June 2019 the Group had approved a capital committment of $2m which is due on completion of key milestones by the fund. During the year the Group purchased a share of the Novotel Hotel in New Plymouth via Ngāmotu Hotels Limited Partnership (NHLP). The Group has a committment of $1m to meet the payments under the earn out clause in the sale and purchase agreement, this is due in December 2019 subject to certain conditions being met.
2019 $’000
2018 $’000
Investments 7,500 Property, plant and equipment - 7,500
2,000 380 2,380
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
81
82
28 COMMITMENTS (CONTINUED) (b) Lease commitments: as lessee The Group leases rural land under non-cancellable operating lease agreements. The lease terms are between 1 and 25 years, and the majority of lease agreements are renewable at the end of the lease period at market rate, except for one lease with a term of 25 years, this has an option to purchase the land at the end of the lease period subject to certain conditions. The future aggregate minimum lease payments under non-cancellable operating leases are as follows: 2019 2018 $â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000 Within one year Later than one year but not later than five years Later than five years Total
165 102 1,122 1,389
549 1,166 1,715
1,389
1,715
Commitments not recognised in the financial statements
29 RELATED PARTY TRANSACTIONS (a) Key management and personnel compensation Key management personnel compensation for the year ended 30 June 2019 is set out below. The key management personnel are all the Committee of Management Members, Directors, and the Shareholder Representative. Committee Members and Directors remuneration and value of other benefits received from the Group for the year ended 30 June 2019 were:
Committee of Parininihi ki Management Subsidiary Waitotora Trust Honoraria Director fees Honoraria $’000 $’000 $’000
Total $’000
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
83
2019 Hinerangi Raumati-Tu'ua 85 - - 85 Hinerangi Edwards
40
-
5
45
Taaringora Nicholas
45
25
-
70
40
25
335
50
5
390
-
60
-
60
-
-
3
3
Beverly Gibson
David MacLeod
Claire Nicholson Dion Tuuta
Committee of Management Members fees Richard Krogh (Independent Director)
Phillip Luscombe (Independent Director)
Darryn Ratana (Shareholder Representative)
45
40
40
-
-
-
-
30
335 140
-
-
-
-
-
45
40
65
40
30
8 483
During the year, the Committee of Management undertook a review of the Committee remuneration. As a result of that review the shareholders approved a revised remuneration approach to governance fees effective 1 January 2019 based on the above table. In addition to the standard governance fees, the following are paid: Chairs of Audit and Risk Committee, HR Committee and Parininihi ki Waitotara Trust receive an additional $5,000 of honorarium per annum. Committee of Management Members appointed to the boards of Port Nicholson Facilities General Partner Limited and Koura Inc General Partner Limited Directorships receive Director Fees of $5,000 per annum. The total fees paid for the six months to 31 December 2018 was $148k. The revised fee structure was implemented on 1 January 2019 and for the six months to 30 June 2019 the fees paid was $242k.
84
29 RELATED PARTY TRANSACTIONS (CONTINUED) (b) Other transactions with key management personnel or entities related to them Information on transactions with key management personnel or entities related to them, other than compensation, are set out below. These entities listed are approved suppliers with the Group. Beverly Gibson is the Chair of Mahia Mai a Whai Tara Trust and Chair of Te Korowai o Ngaruahine Trust. David MacLeod is a shareholder of AJ Greaves Electrical Limited and Chair of Taranaki Regional Council. Dion Tuuta is the Chairman and a Director of Koura Inc General Partner Limited (General Partner of Port Nicholson Fisheries Limited Partnership), Chief Executive Officer of Te Ohu Kaimoana and a Director of TSB Bank Limited. Hinerangi Raumati-Tu'ua is a Director of Te Ohu Kaimoana Trustee Limited, a Director of Venture Taranaki, a Director of Koura Inc General Partner Limited (General Partner of Port Nicholson Fisheries Limited Partnership), and a Director of Taranaki lwi Holdings Management Limited (General Partner of Te Kahui o Taranaki Holdings Limited Partnership). Phillip Luscombe is a Director of Par Farms Limited (recipient of independent director fees) and a Director of NZ Farmers Livestock Limited. Taaringaroa Nicholas, David MacLeod and Claire Nicholson are all committee members and shareholders of Parininihi ki Waitotara Incorporation. 2019 2018 $â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000 Payments / (receipts) AJ Greaves Electrical Limited 4 6 Par Farms Limited 25 4 Te Korowai o Ngaruahine Trust (1) Venture Taranaki (41) (3) Port Nicholson Fisheries Limited Partnership 5 3 Te Kahui o Taranaki Holdings Limited Partnership (6) NZ Farmers Livestock Limited 6 1 (8) 11
(i) Other transactions and balances No other related party balances were written off or forgiven during the year (2018: nil).
30 SUBSEQUENT EVENTS On 5 July 2019, the Committee of Management members approved a dividend of $1.45 per share (2018: $1.30), resulting in a total dividend of $1.737m (2018: $1.557m) to be paid following approval by the shareholders at the AGM. As the Committee of Management approval was obtained following balance date the dividend has not been recorded in the financial statements.
31 STATEMENT OF ESTIMATED CURRENT MARKET VALUES (UNAUDITED)
PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS
85
AS REQUIRED BY SECTION 276A(3)(c) OF TE TURE WHENUA MĀORI ACT 1993 30 June 2019 $’000 Assets Current assets 22,433 Investments 74,255 Property, plant and equipment 152,825 Investment properties 141,450 390,963 Less liabilities Accounts payable and accruals 2,147 Term loans 46,742 Unclaimed dividends 4,618 Derivative financial instruments 2,168 Tax liabilities 3,090 58,765 332,198 Schedule of assets Investment properties Unimproved land value 137,661 Queen Street, Waitara 495 Miranda Street, Stratford 465 Rangikura Road, Waverley 1,950 Other rural land and buildings 879 141,450 Investments Ngamotu Hotels LP 4,006 PNF LP 1,565 Quota 50,700 Fonterra Co-op Shares 11,543 Mangaoapa Forest Partnership 4,900 Rockit Orchards No.2 LP 259 Other financial assets at cost 1,025 Other intangible assets 257 74,255
TR86
PARININIHI KI WAITOTARA TRUST
TE PŪRONGO O TE HEAMANA HINERANGI EDWARDS
He pikinga poupou ki roto o Taranaki. I reira au nei mātakitaki iho. Tukutuku roimata e. Ka tuku roimata mō te hunga kua tae ki te tōrengitanga o tō rātou rā i tēnei tau. Haere, okioki rā. Ko tātou te hunga ora e mahue mai nei, tēnā tātou katoa. E rau rangatira mā, tēnei māua ko ngākau e mihi ana i tōku pūrongo whakamutunga hei tiamana o te taratī nei. Ka tū tonu ngā pou o Taranaki hei arataki i a tātou ngā uri whakatupuranga. Kia hāngai atu ki ngā kupu o Rangiahuta Ruka Broughton i kīa nei, 'kia kaha, kia mou tonu kei riro kei ngaro mō ake tonu atu'. Nō reira tēnā tātou e te whānau.
Nōku te hōnore ki te tāpae atu i tēnei pūrongo, tāku pūrongo whakamutunga mō te Poari Tarati o Parininihi ki Waitotara mō te tau pūtea 2018/19.
whakaaetanga ki Te Korowai o Ngāruahine i tēnei tau pūtea. Koia tō tātou hoa ā-iwi tuatahi ka tuku tahi i te pūtea mā ā rātou uri tonu.
I te roanga o tāku mahi mō te Poari, he maha ngā panoni kua puta i Te Tarati. I mua rā, i kaha whirinaki atu te Tarati ki ngā hurihanga o te Kōporeihana, ā, i taua wā, he taumaha te āhua.
E mōhio nei tātou he whānui atu te rangapū i te tāpae pūtea. Ko tā te mahi ngātahi whai take he whai hua mā te katoa me te tūhura angitu e whakapakari ai te mahi ngātahi i a tātou. Ka miramira tēnei tauira te huri haere o te horopaki kei reira te Tarati e mahi ana. Kua tau te nuinga o ō tātou iwi o Taranaki whānui ki tua atu i te whakataunga kerēme, ā, e taea ana te āta arotahi ki ngā wawata o ō rātou ake iwi, o Taranaki whānui hoki mā te mahi ngātahi. Mā te ārahitanga me te hiahia ki te aro ki tua i ngā rohenga tuku iho ā-iwi, ā-mana whakahaere te kaupapa e whakatutuki, engari he pai ake te āhua o te wāheke mō ngāi Māori o Taranaki, ā, e hiahia
Mai i taua wa, kua tipu mātou i te tipu haere o te āheinga tara ā-whare o te Kōporeihana. Kua whakamatua tātou i te mana ārahi, ā, kua rite mō te rautaki hou hei whakarite mō te āpōpō. He rangapū rautaki kua whakatūngia e rato mai ana i ētehi ara hou mō te tuku tahi i te pūtea kia whakaū ai kia āhei ai mātou te tāpae tonu ki ngā hua mātauranga matua mā ngā kaiwhaipānga o tā tātou Tarati. Ka whakanui au i te waitohu i tētehi
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"E mōhio nei tātou he whānui atu te mahi ngātahi i te tāpae pūtea. Ko tā te mahi ngātahi whai take he whaihua mō te katoa me te tūhura angitu e whakapakari ai te mahi ngātahi ia tātou."
I tēnei tau, he maha ngā mea angitū kua whakatūria mō te Tarati mā te kaupapa here whiwhinga kua whakahoungia me āna karahipi, tūranga pia hoki kua whakatūria i te taha o Nova Energy, o Meridian Energy, o Marsh Insurance hoki. Mā ēnei, mā te karahipi o Ngāruahine hoki, kua $25.5 mano te pūtea tāpiri kua whakangaoa mā te Tarati i ia tau. Ka mihi tātou ki Ballance me Ravensdown, nā rāua te tautoko tonu mai, ā, ka mihia tā Te Whare Wānanga o Te Upoko o te Ika a Māui tautoko nui e whakawhiwhia ai te 20 ākonga, neke atu ki tētehi karahipi taurite nā rātou. Hui katoa, i tautoko te Tarati i ngā ākonga mātauranga matua 193 i ā rātou akoranga i tēnei tau, i āwhinatia ngā ākonga 37 hoki mā te utu i ā rātou nama NCEA. I tautohua e mātou he
I tēnei tau, he 28 tau te paheke taurite o ō tātou kaiwhiwhi mātauranga matua. He 18 tau te mea pōtiki, he 65 tau te mea tauheke. Ētehi o te hunga e whiwhi ana ki te pūtea tautoko kei te hoki ki te ako. Kua uaua mō te hunga 40 tau, neke atu te pahake te utu nama i ngā akoranga whai nama. Nā ngā kaupapa here a te kāwanatanga te take. Ka whakahau mātou i ngā whānau e whai whakaaro ana ki te ako kia rapu mōhio ki ngā mea e āhei ana rātou. Otirā he whānui atu tā tātou kaupapa i te tautoko i te ako takitahi, ā, ka hiahia tonu mātou ki ngā tono mai i ngā kaupapa hapori, ahurea hoki. I tēnei tau, hui katoa he $18,000 i tuaritia ki ngā rōpū hapori rerekē e whā.
HE PARININIHI ORANGA KIPARININIHI WAITOTARAKI TRUST WAITOTARA - TE PŪRONGO TRUST -O CHAIR TE HEAMANA REPORT
NGĀ KARAHIPI, NGĀ TAKUHE HOKI
taupā ki ngā whānau ngā nama, he take hoki i kore eke ai ētehi o ā tātou tamariki ki ngā tohu mātauranga. I tēnei tau ka mutu te utu nama NCEA nā te mea kua whakakorea e te kāwanatanga ngā nama mō te tau e tū mai ana.
MANO
TE TOENGA I MURI I TE TĀKE
I riro i a Te Atiawa Māori Rugby he $2000 kia whakarato wānanga reo, tikanga hoki, ā, i riro i a Para Kore Marae he $6000 kia āwhina i te whakahaere i tētehi kaupapa para kore. I tukuna te $5000 ki Te Korowai o Ngāruahine hei āwhina te tautoko i te kaupapa Swim Like a Fish, ā, i riro i ngā Tarati o Manukorihi Pā te $5000 hei pūtea āwhina i ngā mahi o Te Rā o Pōmare. Tō mātou hari koa ka taea e mātou te tautoko i ēnei rōpū e ngana ana te whakaawe tōrunga, tōtika hoki i te oranga o ō tātou whānau. Hangaia ai, ahu whakamua ai te rautaki e whai mai ana, he mea hiranga kia tipu te Tarati i ētehi ano momo tāpae kia whai take, kia whaiwhakaaro hoki.
HE ORANGA
ana au kia kite i te āhua o te tupu o te Tarati.
HE $47
MONI WHIWHI, WHAKAPAUNGA HOKI I tēnei tau pūtea, he pai hoki te $47 mano toenga i muri i te tāke i puta i PKW Trust. Nā ngā mahi o te tīma tēnei otinga i whakaū ai kia ōrite te nui o te whakapaunga ki ā i tērā
Mauī: Te kaupapa o Te Rā o Māui Pōmare. Matau: Tā Ngāruahine kaupapa o 'Swim like a Fish'.
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"He nui te mahi hei mahi i tua atu i ā tātou tāpaetanga o tēnei wā, heoti anō, ka whakapono tā koutou Tarati he āhuatanga matua te mātauranga, ā, ka taea e mātou te tautoko pai rawa atu i ngā whānau kia whakatipu angitu whakapaitia ai ō rātou oranga." <<
tau, ā, i whakamanea te tautoko ā-pūtea tāpiri mō ētehi mahi. Hei whānuitanga, i tuaritia te $246 mano (TP 17/18 $248 mano) puta noa i ngā pūtea takuhe 234. Ka tū tonu mātou hei kaituku matua ki te mātauranga matua mā ngā uri a Taranaki, ki ētehi anō āhuatanga mahi hoki. MAHI ATU ANŌ Kua whakarewahia e te Tarati tētehi pūrongo mō te Kōpaka Pūkenga i te Rāngai Ahuwhenua, i whakaū pūtea i te TSB Community Trust. Ka whai wāriu ngā putanga o tēnei pūrongo ki te whiringa whakaaro e hāngai ana ki te āwhina i ngāi Māori o Taranaki ki te rapu mahi e hiahiatia ana kia tōnui ai rātou. I uiui hoki mātou ki ngā kaiwhiwhi tautoko i te Tarati o tēnei wā, o mua hoki kia whai mārama ai ki ngā ara i whāia ai e rātou i ā rātou akoranga. Ko te hiahia kia uiui i ngā kaiwhiwhi tohu hou i ia tau kia kohia he raraunga pūtake, he urupare hoki i te wā roa haere ake nei. He harakoa, he mea whakatenatena hoki ngā urupare.
Ki tā te nuinga hoki o ngā kaiwhiwhi tohu (neke atu i te 73%), e mahi ana rātou ki Aotearoa nei, ki tāwāhi rānei. E mahi ana ngā kaiurupare ki ngā momo rāngai mahi whānui, ki ngā momo tūranga mahi maha. He kaha rawa te kitea ki ngā rāngai mātauranga, hauora hoki, ā, ko te āhua nei kua whai tūranga mahi te hunga e hiahia ana ki te mahi ki Taranaki ki ēnei rāngai. I kōrero mai neke atu i te haurua o nga kaiurupare e haere tonu ana tā rātou whai mātauranga, ā-hangere, ā-wā kikī rānei. Ki tā te Kautetanga 2013, he 46% o ngāi Māori e noho ana ki Aotearoa ka whiwhi ki te pūtea iti iho i te $20,000 i ia tau. I kōrero mai tata ki te whitu tekau ōrau o ngā kaiurupare ka whiwhi moni nui atu i te $50,000 i ia tau. Kātahi te āhuatanga tauaro ko tēnei. He nui ngā mahi kei mua i te aroaro i tua atu i ā tātou mahi i tēnei wā, engari e whakapono ana tā koutou Tarati ko te mātauranga tētehi āhuatanga matua ka taea e tātou te kaha tautoko i ngā whānau ki te whakatipu mea angitu kia hāpaingia ai ō rātou oranga. Ka
āwhinatia tā tātou ako, tā tātou whakatau whakaaro pai ake e āu urupare, e te rangahau hoki e mahi ngātahi ai tātou ko rōpū kē ki kaupapa whānui atu. Mā tēnei e whakaū ai ka arotahi te Tarati ki nga mea ka whai hua tonu. NGĀ PUTANGA PAE TAWHITI Ko tā te Tarati, he mahi whakamōwai i waenga i te rōpū whānui o PKW. Ki ōku whakaaro, he pitomata kāore anō kia puāwai hei tāpae ki te oranga o ō tātou tāngata katoa. Nā tāna nui, nā āna whiwhinga pūtea hoki i pēnei ai, nā ētehi atu āhuatanga hoki. Heoti anō, kua roa atu i te ngahuru tau tāna tāpae atu ki ia Manu Kōrero ā-Rohe, ia Pae Rangatahi i tū ai i Taranaki; he kaituku pūtea hoki o ia hui o Taranaki Tū Mai kua whakamanea e hia mano tāngata kia hoki mai ki Taranaki, (ā, ka tino hiahia mātou ki tā Ngāti Maru whakamanuhiri hei ngā wiki e tū mai nei), ā, kua auau te tautoko i ngā kaupapa tauwhāinga-toru, i kaupapa hauora atu anō hoki. Kua rato pūtea mā ngā hui umanga, mā te maha o ngā kaupapa motuhake anō, tae ana ki ngā kaupapa i whakaputaina i te pūrongo pūtea o tēnei tau.
Mauī: Ko June Hooker rātou ko Ngawai Hooker, ko John Hooker, ko Peter rāua ko Wiki Moeahu hoki i te Hui ā-Tau a PKW, i te Marae o Owae. Matau: Ko te hunga kaiwhaipānga taiohi i te Hui ā-Tau o PKW, i Owae Marae.
Mauī: Ka whakangahau Te Kāhui o ngā Mātā Raukura i te hunga kaiwhaipānga i te Hui ā-Tau o PKW, i Owae Marae. Matau: Ko te whānau/mokopuna a Hine Rose.
Hē wā whakaaroha tēnei kia puta au i te Tarati me te Kōporeihana i tēnei Hui ā-Tau. Kua hari koa au e wehe nei ki ngā mea whakamōwai kua oti i te Tarati. E whakapono ana au arā tonu te wāhi ki te hinonga nei hei kaupapa mā Taranaki whānui, i te taha o ō tātou iwi, o kaupapa Māori atu anō i Taranaki kia tāpae ai ki te wawata whānui mō Taranaki, mō ngā uri i te kāinga, i hea atu hoki. E taea ana te mahi i tēnei i te taha o te Kōporeihana kua āta whakarerekē, ahu whakamua hoki i āna tikanga pāpori, ahurea, taiao hoki. Ka mihia te tautoko me te tāpae o ngā mema katoa o te Poari Tarati kua mahi tahi nei i ngā tau 12 kua pahure, tae ana ki te heamana o mua, ki a Tama Potaka. Ka hoki ōku mahara ki a Aunty Gloria Kerehoma kua mate atu rā, nāna i whakaae kia tū au i tēnei tūranga. E kore e wareware i a au. Ka haere tonu taku whakatairanga i te Tarati haere ake nei, heoti anō kua tae te wā kia neke atu au kia taea ai e tangata kē te mahi.
Nga- mihi Hinerangi Edwards Heamana
WHIWHINGA PŪTEA 2018
$347,000
WHIWHINGA PŪTEA 2019
$414,000
HE ORANGA
HEI WHAKAKAPINGA
HE PARININIHI ORANGA KIPARININIHI WAITOTARAKI TRUST WAITOTARA - TE PŪRONGO TRUST -O CHAIR TE HEAMANA REPORT
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NGĀ RAWA 2018
$3.144MIRIONA NGĀ RAWA 2019
$3.189MIRIONA
2018 NGĀ TAKUHE I TUARITIA
$248,000
2019 NGĀ TAKUHE I TUARITIA
$246,000
90
PARININIHI KI WAITOTARA TRUST
CHAIR'S REPORT HINERANGI EDWARDS
He pikinga poupou ki roto o Taranaki. I reira au nei mātakitaki iho. Tukutuku roimata e. Ka tuku roimata mō te hunga kua tae ki te tōrengitanga o tō rātou rā i tēnei tau. Haere, okioki rā. Ko tātou te hunga ora e mahue mai nei, tēnā tātou katoa. E rau rangatira mā, tēnei māua ko ngākau e mihi ana i tōku pūrongo whakamutunga hei tiamana o te taratī nei. Ka tū tonu ngā pou o Taranaki hei arataki i a tātou ngā uri whakatupuranga. Kia hāngai atu ki ngā kupu o Rangiahuta Ruka Broughton i kīa nei, 'kia kaha, kia mou tonu kei riro kei ngaro mō ake tonu atu'. Nō reira tēnā tātou e te whānau.
I am honoured to present what will be my last report on behalf of the Parininihi ki Waitotara Trust Board for the financial year 2018/2019.
agreement with Te Korowai o Ngāruahine. They are our first iwi partner to co-fund a scholarship specifically for their uri.
The Trust has experienced a great deal of change during the time I have served on its Board. Back then, the Trust was wholly reliant on the fortunes of the Incorporation and at that time things were very tough.
We know partnership goes beyond financial contributions. Meaningful partnering requires finding mutual wins and exploring opportunities where the partnership strengthens us. This example highlights the changing context in which the Trust operates. Most of our Taranaki iwi are now in a post-settlement phase and can now more readily focus on the aspirations of their own iwi and also the wider Taranaki rohe through collaboration. It will take leadership and desire to work beyond the traditional boundaries of iwi and mandate, but the future for Taranaki Māori looks brighter and I am interested to see how the role of the Trust will evolve.
Since then we have grown as the internal capacity of the Incorporation has grown. We have been steady in governance and are now poised for a new strategy to prepare for what the future has to offer. We have a number of strategic partnerships in place that are providing us with new avenues for co-funding to ensure we can continue to contribute to tertiary outcomes for our Trust's beneficiaries. I acknowledge during this financial year the signing of an
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SCHOLARSHIPS AND GRANTS This year has seen many new opportunities created for the Trust through the Incorporation’s updated procurement policy with scholarships and internships created in partnership with Nova Energy, Meridian Energy and Marsh Insurance. These, with the Ngāruahine scholarship, see an additional $25.5k invested through the Trust annually. We acknowledge the continued support of Ballance and Ravensdown, and acknowledge the significant support from Victoria University, which sees at least 20 of our students gain a matched scholarship from them. In total, the Trust supported 193 tertiary students in their studies this year, as well as assisting 37 students through the reimbursement of their NCEA fees. We had identified that fees were a barrier for whānau and a
reason some of our children were not gaining school qualifications. This will be the last year of NCEA fees support as fees have been dropped by the government for the coming year. This year the average age of our tertiary recipients was 28 years with the youngest being 18 years and the oldest being 65 years. A number of those receiving support are people returning to study. Government policies make it more difficult for those over 40 to afford studying in fees paid courses. We encourage whānau considering study to find out what they are entitled to. Our kaupapa extends further than supporting individual study, however, and we are always open to applications from community and cultural groups. This year a total of $18,000 was distributed to four different community groups.
Left: Sir Māui Pōmare Day kaupapa. Right: Ngāruahine 'Swim like a Fish' kaupapa.
$47
HE HE ORANGA ORANGA PARININIHI PARININIHI KIKI WAITOTARA WAITOTARA TRUST TRUST - CHAIR'S - CHAIR REPORT
"We know partnership goes beyond financial contributions. Meaningful partnering requires finding mutual wins and exploring opportunities where the partnership strengthens us."
THOUSAND NET SURPLUS
Te Atiawa Māori Rugby received $2000 to deliver language and tikanga wānanga, while Para Kore Marae received $6000 to assist the implementation of a zero-waste initiative. Te Korowai o Ngāruahine were granted $5000 to help support the Swim Like A Fish kaupapa, and Manukorihi Pā Trustees received $5000 as a contribution towards Māui Pōmare Day activities. We are happy we could support these groups in their efforts to influence the lives of our whānau in such a positive and proactive way. As the next strategy is formulated and gains traction, it will be important that the Trust grows its offerings in other meaningful and considered ways. REVENUE AND EXPENDITURE This financial year the PKW Trust had a healthy net result of $47k surplus. This was the result of
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"We have much to do beyond our current offerings, but it is your Trust’s belief that education is one of the key areas that we can best support whānau to grow opportunities to improve their lives."
<<
the work of the team to maintain expenditure at consistent levels to last year as well as attracting further financial support for activities. Overall, we distributed $246k (FY17/18 $248k) across 234 grants. We remain a significant contributor to tertiary education for Taranaki uri among other activity areas. OTHER ACTIVITIES The Trust has initiated a report on Skills Shortages in the Primary Sector, securing funding from the TSB Community Trust. The results of this report will be of great value to the kōrero of how to help Taranaki Māori secure the work they need to thrive. We also surveyed current and former Trust recipients to gain an insight into where their studies have taken them. The intention is that this survey will be carried out each year with new graduates so we can collect baseline data and feedback over a sustained length of time.
The responses have been interesting and encouraging. The vast majority of graduates (over 73%) report they are working, either in New Zealand or overseas. Respondents are working in a wide range of employment sectors, in a variety of roles. Education and health are represented the most highly, and it seems those wishing to work in Taranaki are most engaged in roles in these areas. More than half of the respondents reported that they are continuing their education journey either fullor part-time. The 2013 Census reported that 46.3% of Māori living in Aotearoa NZ earned less than $20,000 a year. Nearly seventy percent of our respondents said they are earning more than $50,000 a year. That is a stark contrast. We have much to do beyond our current offerings, but it is your Trust’s belief that education is one of the key areas that we can best support whānau to grow opportunities to improve their
lives. Your feedback, along with research where we partner with others in wider projects, helps us learn and make better decisions. This will ensure that what the Trust focuses on are things that actually make a difference. LONG TERM OUTCOME The role of the Trust is a humble one in the wider PKW group. I feel it has unrealised potential to contribute to the collective wellbeing of our people. This is partly because of its size and income. However, it has quietly given to every regional Manu Kōrero and Pae Rangatahi event held in Taranaki for over a decade; been a funder of every Taranaki Tū Mai event which has attracted thousands of people back to Taranaki (and we look forward to Ngāti Maru hosting in the coming weeks), regularly supported triathlon series and other health initiatives, provided pūtea for supported careers events and many other special kaupapa such as the ones named in this year’s financial report.
Left: June Hooker, Ngawai Hooker, John Hooker, Peter and Wiki Moeahu at PKW AGM, Owae Marae. Right: Shareholder rangatahi at PKW AGM, Owae Marae.
Left: Te Kāhui o ngā Mātā Raukura perform for shareholders at PKW AGM, Owae Marae. Right: Hine Rose whanau/mokopuna.
FINALLY It is a bittersweet moment to retire from both the Trust and the Incorporation at this AGM. I leave feeling proud of the quiet things the Trust has achieved. As a pan-Taranaki entity, I believe it still has a place, along with our iwi and other Taranaki Māori entities to make its contribution to a wider vision for Taranaki and for uri at home and elsewhere. It can do this alongside the Incorporation which has also made significant changes and advancements in its social, cultural and environmental practices. I would like to acknowledge the support and contribution of all the Trust Board members I have worked with over the last 12 years, including previous chair Tama Potaka. I think of the late Aunty Gloria Kerehoma who gave her blessing for me to be in this role. E kore e warewaretia. I will continue to champion the Trust as I move on, but now it is time to stand aside and let others serve.
Nga mihi -
Hinerangi Edwards Chair
2018 INCOME
$347,000
2019 INCOME
$414,000
2018 ASSETS
$3.144M
2019 ASSETS
$3.189M
2018 GRANTS PAID
$248,000
2019 GRANTS PAID
$246,000
HE HE ORANGA ORANGA PARININIHI PARININIHI KIKI WAITOTARA WAITOTARA TRUST TRUST - CHAIR'S - CHAIR REPORT
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Partnerships Provide Opportunity
VICTORIA UNIVERSITY WELLINGTON Two co-funded scholarships worth $5000 are available each year to existing students.
Providing meaningful opportunity for Taranaki M훮ori is a key driver for PKW's scholarship and internship programme, which is growing each year.
Building strong relationships with business partners to bring about value-add propositions has increased the number of opportunities to receive funding towards tertiary education fees. Gaining valuable experience in a diverse range of organisations across a wide variety of industry sectors is also available for PKW wh훮nau. "It is exciting to see the increase in opportunities our strategic approach is starting to generate," says Mitchell Ritai, General Manager Shareholder Engagement. "Scholarships and internships not only benefit the
individual, but help to increase the skills and capabilities within our wh훮nau and iwi. The organisation providing the opportunity can also benefit from a new perspective and ideas the recipient can bring with them. It's a win:win all round. "We intend to continue building relationships and strengthening partnerships with our suppliers so the number of opportunities for our rangatahi can grow." Currently, opportunities are available with the following PKW partners:
"Scholarships and internships not only benefit the individual, but help to increase the skills and capabilities within our wh훮nau and iwi." Mitchell Ritai
Victoria University Wellington was founded in 1897 and named Victoria College in recognition of Queen Victoria's Diamond Jubilee. Historically, the university has shown a strength in public policy and has made substantial contributions to several major government projects. Educating the next generation of entrepreneurs is a focus for the future.
BALLANCE AGRI-NUTRIENTS Two scholarships worth $2,500 available to full time land science or business studies undergraduate students. Ballance is a NZ farmer-owned cooperative that helps make farming more productive, profitable and sustainable. From a core business of manufacturing fertiliser, it has grown to offer a full range of nutrient- related products and services. These enable farmers to achieve productivity goals while leaving a minimal environmental footprint.
A $5,000 scholarship is available for one undergraduate for a maximum of three years. The opportunity for an internship is also on offer. Applicants must align with PKW and Ravensdown business activities. Started by South Canterbury and Otago farmers in 1978 to avoid a fertiliser production monopoly, Ravensdown has expanded its product offerings to cover all elements of the food creation business in a way that reduces environmental impacts and optimises value from the land.
MARSH INSURANCE A $2,000 undergraduate scholarship and opportunity for internship. Studies must contribute to PKW's business activities. Marsh Insurance is a global leader in insurance broking and innovative risk management solutions. They help their customers quantify and manage risk and unlock new opportunities for growth.
NOVA ENERGY
FARMLANDS
Undergraduate students in technical or science-related field are eligible to apply for this $5,000 per year for three years scholarship.
Up to three annual $2,500 scholarships are available for undergraduates undergoing full-time study. Studies must contribute to PKW and Farmlands business activities.
One of the newest power retailers in the New Zealand market, Nova offers electricity, natural gas, broadband internet services and landline telephone services. The company prides itself on its awardwinning customer services.
TE KOROWAI O NGĀRUAHINE TRUST This $2,500 co-funded scholarship is for full-time undergraduate students whose studies align with PKW and Te Korowai o Ngāruahine Trust business activities. The Trust is the mandated postsettlement governance entity for Ngāruahine Iwi.
New Zealand's largest farmerowned co-operative, formed with the intention of providing competition in the retail farm supply industry to reduce costs for small agribusinesses. Farmlands supplies products and services for all elements of the farming industry.
KPMG A paid summer internship opportunity for a PKW scholarship recipient in a relevant field of study. KPMG is a global network of professional firms providing audit, tax and business advisory services.
iSTUDIOS BNZ MERIDIAN ENERGY Co-funded by PKW, this $1,500 one year scholarship is open to all undergraduate students. Meridian is NZ's largest renewable energy generator, producing all its power from 100% renewable sources. It is also one of the country's largest power retailers.
A co-funded scholarship of $2,500 for undergraduates studying in the banking or finance related field along with a potential opportunity for a summer internship. BNZ is one of New Zealand's big four banks and provides financial services across the retail, business and institutional banking sectors.
A paid summer internship opportunity for a PKW scholarship recipient in a relevant field of study. Providing multimedia design, marketing and communications services to a wide range of clients, iStudios is a local Taranaki company.
HE ORANGA
RAVENSDOWN
PARININIHI KI WAITOTARA TRUST - CHAIR REPORT
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PARININIHI KI WAITOTARA TRUST
NGĀ KAIWHIWHI TAUTOKO SCHOLARSHIPS AND GRANTS
"I’m learning to finally call myself an artist and I’m immensely grateful that PKW sees the value in the arts by honouring me with this scholarship. " Bonita Bigham Charles Bailey Postgraduate Scholarship Recipient
CHARLES BAILEY POSTGRADUATE SCHOLARSHIP Recipient
Bigham, Bonita
Year
2019
Qualification
Master of Māori Visual Arts
Shareholder Support Josie Bigham
MATE KI TAWHITI CARR POSTGRADUATE SCHOLARSHIP Recipient
Fazakerley, Olympia
Year
2019
Qualification
Master in Applied Management
Shareholder Support
JN & R Taiaroa Whanau Trust
EDWARD TAMATI POSTGRADUATE SCHOLARSHIP Recipient
Bodger, Steven
Year
2019
Qualification
Master of Education
Shareholder Support Patricia Bodger
GLORIA KEREHOMA POSTGRADUATE SCHOLARSHIP Recipient
Stephens, Susan
Year
2019
Qualification
Masters of Public Health
Shareholder Support Ihaka Robinson
PKW-VICTORIA UNIVERSITY POSTGRADUATE SCHOLARSHIP RECIPIENTS Recipient
Year
Qualification
Shareholder Support
Pope, Rere-No-A-Rangi
2019
Master of Software Development
Angela Te Wharemamaku Edwards
Wi-Neera, Nirvana
2019
Master of Education
Jamie Tuuta
Recipient
Year
Qualification
Bachelor of Science
Richard James Tamati Ellison Whanau Trust
Kahui, Vaun
2019
Bachelor of Business
Neville Bevan Kahui
Warbrick-Ellison, Mahinaarangi Rena
2019
Shareholder Support
PKW-RAVENSDOWN UNDERGRADUATE SCHOLARSHIP RECIPIENT Recipient
Waipoua-Bryers, Taiawhio
Year
2019
Qualification
Bachelor of Science (Technology)
Shareholder Support Victoria Ann Kilgour
PKW-NGÄ&#x20AC;RUAHINE UNDERGRADUATE SCHOLARSHIP RECIPIENT Recipient
Weston-Jacobson, Bianca Chantelle Aroha
Year
2019
Qualification
Graduate Diploma of Teaching (Primary)
Shareholder Support
Nanci-lee Hinerakei Katene
PKW-NOVA ENERGY UNDERGRADUATE SCHOLARSHIP RECIPIENTS Recipient
Year
Qualification
Shareholder Support
Hintz, Joby
2019
Bachelor of Civil Engineering
Cheryl Hintz
Poa, Poipoia Te Taonga
2019
Bachelor of Commerce
Wiremu Whanau Trust
Roach, Jessica
2019
Bachelor of Science
Bryan Wynyard Roach
PKW-MARSH INSURANCE UNDERGRADUATE SCHOLARSHIP RECIPIENT Recipient
Katene-Ashford, Tazmyn
Year
2019
Qualification
Bachelor of Arts
Shareholder Support
Nanci-lee Hinerakei Katene
PKW-MERIDIAN INSURANCE UNDERGRADUATE SCHOLARSHIP RECIPIENT Recipient
Koroheke, Te Rangihaeata
Year
2019
Qualification
Bachelor of Design
Shareholder Support
Ruve Maureen Lindsay
PKW UNDERGRADUATE SCHOLARSHIP RECIPIENTS Recipient
Year
Qualification
Shareholder Support
Langton, Bree-Anna
2019
Bachelor of Medicine and Surgery (MBChB)
Rex Bruce Langton
McConnell, Glenn
2019
Bachelor of Arts
Ngaki Dawn McConnell
Ritai, Taimus
2019
New Zealand Diploma of Business
Pamela Te Urumairangi Ritai
Tamati, Te Waikapoata
2019
Bachelor of Dental Surgery
Whanau Hond Trust
Kennedy, Ngawhira Omecia
2019
Bachelor of Laws/ Bachelor of Arts
Ani Patene Kupe
HE ORANGA
PKW-BALLANCE UNDERGRADUATE SCHOLARSHIP RECIPIENTS
PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS & GRANTS
97
98
"This year I have been able to bring new focus to my studies and the scholarship will make a real diďŹ&#x20AC;erence, both financially and educationally." Tazmyn Katene-Ashford PKW-Marsh Insurance Undergraduate Scholarship Recipient
TERTIARY GRANTS Recipient
Qualification
Shareholder Support
Amor-Ponter, Crystal
Bachelor of Commercial Music
Vickie Amor
Anderson, Jamaika
Bachelor of Arts
Betty Rautau Anderson
Atkinson-Kingi, Tiana
New Zealand School of Tourism - Tourism, Peter Moeahu Jnr Hotel & Airline Operations Level 4 and Tourism & Travel Management Diploma Level 5
Atutahi, Heather
Bachelor of Community Health
Heather Atutahi
Atutahi, Lyla
Diploma in Conveyancing
Lyla Mamaeroa Atutahi
Bailey-Nowell, Abbie
Graduate Diploma of Teaching (Primary)
Charles Bailey Estate
Bailey, O'Jay
Bachelor of Nursing
Michael Matoe
Baker, Cynda
Master of Clinical Nursing
Joseph Kauika
Barriball, Rimu
Bachelor of Science - Zoology
Wayne Gordon Barriball
Bassett, Nancy Lynette
Master of Arts
Nancy Basset
Bayly, Te-Rapa
Diploma in Hotel Management
Buster Parry
Bidois, Emily Emire Mauria
Bachelor of Applied Management Degree
Nanny Ruby's Whanau Trust
Bishop, Chyloe
Diploma of Leadership and Management
Ramari Bishop
Blackburn, Roimata
Bachelors of Applied Science (Medical Imaging Technology, Radiography)
Heemi Wiripo Ngaiwikatea Bailey Whanau Trust
Bourne, Chyna-Li
Bachelor of Law
Campbell Ming Fei Gin
Bright, Alexis
Pre Entry to Healthcare
Gary Ngaia
Brooks, Alayna
Bachelor of Nursing
Heemi Wiripo Ngaiwikatea Bailey Whanau Trust
Brooks, Alison
Conjoint Bachelor of Law and Bachelor of Science
Marylinda Brooks
Brooks, Daniel
Bachelor of Business Studies
Steven Russell Gray
Buchanan, Hannah
Diploma - Heke Reo MÄ ori
Hannah Mary Buchanan
Cann, Ariana
Radiation Therapy
Kenneth Royce Tohia
Cattley, Shannon
Bachelor of Architectural Studies
Robert Hurinui
Chase, Charlene-Jackwalyn
He Korowai Akonga
Maria Rose Chase
Chittenden-O'Leary, Jesse
Bachelor of Design Innovation
Roberta Irirangi Walden
Cotterill-Jeffries, Corin
Certificate in University Preparation
Fiona Veronica Cotterill
Cribb, Miriama
Master of Business Studies
Retihamatikei Lorraine Cribb
Davis, Aaron
Bachelor of Business Studies
Marcus Paul Davis
Recipient
Qualification
Shareholder Support
Davis, Taine
Bachelor of Business / Bachelor of Science Marcus Paul Davis
Dooney, Rhys
Bachelor of Science
Patricia Jill Affleck
Dooney, Sara
Bachelor of Engineering (Hons)
Patricia Jill Affleck
Duxfield, Macy
Bachelor of Law & Bachelor of Arts
Tirita Tawhake Tamou Whanau Trust
Elkington, Angus
Doctor of Clinical Psychology
Elkington Trust
Fitzpatrick, Daniel
Postgraduate Diploma Secondary School Teaching
Marama Lyall Barraball
Gin, Atiria
Bachelor of Health, Sports and Human Performance
Taonui Lance Mark Gin
Hancock, Megan
Bachelor of Business Analysis / Bachelor of Law (Hons).
Delwyn Maria Hancock
Harrop-Marriner, Portia
NZ Certificate in Horticulture
Gary Ngaia
Harrop-Marriner, Samme-Sara
Diploma in Vet Nursing
Gary Ngaia
Harvey, Jack
Postgraduate Diploma in Business
Elaine Rahera Carr Harey
Hau, Emma
Bachelor of Midwifery
Kenneth Mark Hau
Hau, Kenny
Bachelor of Surgery and Medicine
Kenneth Mark Hau
Kathleen Lisa, Hawe
Diploma - Te Reo MÄ ori
Kathleen Lisa Hawe
Hemara-Wahanui, Kayla
Bachelor of Nursing
Patrica Hemara Wahanui
Hobbs, Zoe
Bachelor of Science (Human Nutrition)
Dorothy Hobbs
Hoeta, Kandi
Maunga Kura Toi - Level 6 Raranga
Charmaine Hoeta
Holman-Wharehoka, Maia-te-oho Bachelor of Building Science
Rongomai Wharehoka
Hopa-Cribb, Maraea
He Korowai Akonga : Bachelor of Education (Primary Education) Level 6 Year 2
George Hopa
Hopa, Carolyn
He Waka Hiringa - Masters in Applied Indigenous Knowledge
George Hopa
Huhu, Parengaio
Bachelor of Visual Arts (Te Toi o nga Rangi) Janette Lucia Manu
Jones, Taneal
Bachelor of Commerce
Mulligan Whanau Trust
Kahui-Mauriri, Johan
Certificate - Kawai Paupapa
Johan Meka Kahui-Mauriri
Kara-Tihi, Dominique Te Uruhina Certifcate Level 4 Business Administration and Technology
Thomas Turetangata Malcomb Kara
Katene-Rawiri, Mariah
Diploma Business Management
Frances Kingi Katene
Katene, Asher
Bachelor of Arts
Te Hinganga Betty McLean
Katene, Makiya
Bachelor of Arts
Winton Wiremu Katene Jnr
Katene, Reuben
Bachelor of Dental Surgery
Josie Bigham
Kauika, Ashleigh
Bachelor of Nursing Degree
Joseph Kauika
Keepa, Aotahi
Certificate Health Science
James Hawe
Kemp, Lena
Bachelor of Health Sciences: Honours
Jan Hariata Bezems
Kemp, Noah
LLB (Bachelor of Law) and BA (Bachelor of Arts)
Jan Hariata Bezems
Kerehoma, Bronson
Diploma in Hospitality and Tourism
Marylinda Brooks
King, Martin
Master of indigenous Studies
Stephen Denis King
Kingi-Laurence, Willow
Bachelor of Arts
Noel Tapi Kingi
Kira, Caliah
Bachelor of Psychology
A.T.G Abraham Whanau Trust
Langton, Shamus
Bachelor Communication
James Frederick Langton
Langton, Xavier
Bachelor of Commerce
Rex Bruce Langton
Laupama, Shelton Malia Tarati
Level 4 Certificate in Fitness
Leanne Snooks
HE ORANGA
TERTIARY GRANTS (CONTINUED)
PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS & GRANTS
99
100
TERTIARY GRANTS (CONTINUED) Recipient
Qualification
Shareholder Support
Lawrence, Caleb
New Zealand Certificate in Health and Te Ahu Randal Rei Wellbeing (Social and Community Services) (Level 4) with strand in Mental Health and Addiction Support
Lewis, Chontell
Bachelor of Law
Shane Ruihi
Lewis, Kimberley
Bachelor of Health Science
Beverley Anne Robinson
Lock, Sam
Bachelor of Computer Science
Jacqueline Elizabeth Martin
Loper, Nicole
Bachelor of Medicine and Surgery
Clesta Benita Loper
Luke, Bobby
PhD Creative Technologies
Bobby Campbell
MacFater, Wiremu
PhD Surgery
Sarah Williams MacFater
MacLeod, Reuben
Bachelor of Science
David Nigel MacLeod
Mako, Maria
Bachelor Biligual Primary School Teacher
John Henry Katene Hooker
Manaia, Georgina
Bachelor Bicultural in Social Work
Pandra Reihana
Manaia, Tuarua
Bachelor of Health Science
Marietta Heni Manaia
Manu-Millar, Rebekha
Certificate Foundation Health Science
Cindy Avery Millar
Manukonga, Adrian
Certificate in Culinary Arts (Level 4) Year 1 Tinitia Raikaao Whanau Trust
Maruera, Janine
Te Aupikitanga ki te Reo Kairangi
Janine Maruera
Matenga, Grace
Bachelor of Health Science
Lucy Wetere Rata
Maxwell, Lily
Bachelor of Nursing
Jamie Tuuta
Mckenzie, Tom
Bachelor of Agricultural Science
Shona Agnes Maxwell
Meleisea, Atiliai
Bachelor of Arts
Tawhakirangi Tuhia Tutahione
Mildenhall, Taylor
Bachelor of Nursing
Lynne Amy Foster
Moore, Tracey
Bachelor of Social Work
Wikitoria Jessie Beamish
Morgan-Edmonds, Turanga
Bachelor of Design / Te Reo MÄ ori
Riwai Morgan Whanau Trust
Morrell (nee Preston), Aimee
Certificate in Business Studies
Edward Rongmai Ira Tamati Whanau Trust
Murray, Logan
Bachelor of Medicine and Bachelor of Surgery (MB ChB)
Ani Teinati Murray
Muru-King, Rhys
Bachelor Degree in Media Arts (Fashion Design)
Bernard King
Nepia-Peina, Te Atuarere
Level 3 & 4 Health Science
Wikitoria Keepa Mete Kingi Whanau Trust
Ngaronga, Jamie
Poutahu Whakaakoranga
Te Awhe-Kingi Whanau Trust
Ngeru, Chiquita
Bachelor of Nursing
Edward Te Mira Ngeru
Nicholson, Joshua
Bachelor of Medicine and Bachelor of Surgery
Claire Nicholson
Nicholson, Matt
Bachelor of Commerce
Claire Nicholson
Niwa, Baylee
Postgraduate Diploma of Business Administration (MBA)
Maurice Niwa
O'Carroll, Kathleen
New Zealand Sign Language - English Interpreting Major - Bachelor of Arts
Vickie Amor
Osborne, Mako
Bachelor of Commerce
Janica Huia Herlihy
Paki Paki-Utiera, Samantha
Bachelor of Arts and Bachelor of Commerce Maria Kiri Pakipaki
Palmer, Leah
Bachelor of Health Science
Charels Pears Palmer
Parata-Sullivan, Shyra
Bachelor of Science
Hira Parata
Parata, Kiri
Master of Arts
Edward Rongomai Ira Tamati Whanau Trust
Parata, Trevarn
Bachelor of Business
Elliot John Mauriri
Recipient
Qualification
Shareholder Support
Parker, Delaney
Te Tohu Paetahi - M훮ori and Indigenous Studies
Evelyn Te Ringakaha Pullen Whanau Trust
Payne, Matiu
PhD (Doctor of Philosophy)
Florence June Tikao
Piki, Keanu
Bachelor of Science
Poi Pue Estate
Poa, Te Wainuiarua
Bachelor of Law & Bachelor of Arts
Wiremu Whanau Trust
Preston, Joshuaa
New Zealand Certificate in Business (Adminisration and Technology) (Level 3)
Wiremu Kingi Te Toa Rang훮tira Whanau Trust
Ratahi, Aquila-Maree
Certificate Beauty Therapy
Daniel Cyril Ratahi Whanau Trust
Ratahi, Tima
Bachelors Degree in Applied Management
Gray Ratahi
Ratana, Te Uru Kowhai
Bachelor of Engineering
JN & R Taiaroa Whanau Trust
Repia, Natalia
Certificate - M훮ori Natural Resource Management
John Green
Reweti, Tuari
Diploma in Counselling
Pamela Te Urumairangi Ritai
Robb, Michelle
Certificate - Te Ara Reo Level 1-2 He Pii Ka Pao
Rauru Te Ng훮 Ruru Whanau Trust
Roberts, Etelini Rose
Bachelor of Biomedical Science
James Rollo Berry
Robinson, Noel
Certificate - VMI - Vehicle, Machinery, Infrastructure
Warwick Moroni Robinson
Savage, Te Aata
Postgraduate Diploma in Psychology
Roberta Irirangi Walden
Seed, Jacinta
Bachelor of Health Science (Physiotherapy) Rongomai Wharehoka
Serubasaga, Kini
Bachelor of Nursing
Lucille Gawler
Sheridan, Tamahina
Bachelor of Arts
Moses Apou
Simpson, Taylor
Electrician
Lynne Rei
Slater-Carter, Madelyne
Bachelor of Medicine and Bachelor of Surgery
Christine Maragaret Mathieson-Picken
Smith, Joshua
Carpentry
Peri Whanau Trust
Solomon, Joshua
Bachelor of Medicine and Bachelor of Surgery
Hinewaito Bigham
SooChoon, Grace
Bachelor of Arts
Whanawhana Tauranga
Speechlay, Maia
Bachelor of Law and Arts
Merilyn Jean Speechlay Estate
Speechlay, Natalia
Bachelor of Teaching (Primary)
Merilyn Jean Speechlay Estate
Stephens, Ropata
Diploma of Te Tohu Paetahi
Susan Stephens
Stephens, Teiarere
Postgraduate Diploma in Science and Technology
Wirape Ruakere
Stevenson, Dayna
Bachelor of Science
Heemi Wiripo Ngaiwikatea Bailey Whanau Trust
Stevenson, William
Certificate in University Studies
Heemi Wiripo Ngaiwikatea Bailey Whanau Trust
Sullivan, Courtney
Bachelor of Medicine and Surgery
Hautorokawa Wi Komomo Sullivan Whanau Trust
Syminton, Kay
Doctorate of Health Science
The Emily Garland Whanau Trust
Tahau, Alexandra
Bachelor of Commerce
Reiwyn Kaaneihana Davey (Hohaia) Whanau Trust
Tapiki, Lisa
Certificate in Pattern Design
Kathryn Tapiki
Taylor-Mason, Iyanah
Bachelor of Nursing
Toherangi Whanau Trust
Taylor, Pianika
Bachelor of Health Sciences
Edward Rongomai Ira Tamati Whanau Trust
HE ORANGA
TERTIARY GRANTS (CONTINUED)
PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS & GRANTS
101
102 TERTIARY GRANTS (CONTINUED) Recipient
Qualification
Shareholder Support
Te Wiki, Redemption Kopeke Moeke
Bachelor of Science / Bachelor of Arts
Whai Te Wiki
Telford, Portia Harimate Teuila
NZ Certificate in Horticulture
Maria Elizabeth Irving
Thocolich, Aaliyah
Bachelor of Science
Iwimaire Davey Whanau Trust
Thomas-Moore, Kianai-Mayy
Hairdressing Salon Skills
Daniel Cyril Ratahi Whanau Trust
Thomson-Baker, Aliesha
Bachelor of Health Sciences
Paula Frances Niwa
Tikao, Roy
New Zealand Certificate in Business - First Line Management Health
Florence June Tikao
Timu-Kaea, Jody
Bachelor of Nursing
Michael Matoe
Tioro, Hope
Bachelor of Psychology
Sonia Marama Tioro
Tito-Collins, Ashleigh
Graduate Diploma of Teaching
Rex Bruce Langton
Tumahai, Taina
Bachelor of Humanities
Ngawai Walden
Urwin, Abbey
Bachelor of Medicine and Bachelor of Surgery
Raymonde Pikitu Cowell
Urwin, Anthony
BA Te Reo MÄ ori
George Urwin
Urwin, Jordan
Bachelor of Business
Raymonde Pikitu Cowell
Van Nistelrooy, Oriana
Postgraduate Diploma in Environmental Science
Joan Te Awhe
Vella, Riria
Bachelor of Health
Te Ahu Randal Rei
Wana, Awhina
Bachelor of Nursing Year 1
Ngakawe and Hauraki Wana Whanau Trust
Watson, Kobe Rangi
Certificate - My Pathways Foundation and Electrical Engineering Level 3
He Whenua Tapu Whanau Trust
Watts, Grace
Bachelor of Health Sciences
Louisa Ada Bull Whanau Trust
Wayne, Toni
Bachelor of Applied Management
Pare Tomo Whanau Trust
Weston, Azaria
Certificate in Metal Fabrication
Te Ahu Randal Rei
Wharepapa, Anne
Bachelor of Nursing
Juanita Davis
Wharepapa, Renee
Bachelor of Business
Douglas Gibbs Puke
Wheeler, Hanna
Bachelor of Nursing
Heemi Wiripo Ngaiwikatea Bailey Whanau Trust
Whiu, Vanessa
Masters of Business Studies
Vanessa Whiu
Williams, Bailey
Post Graduate Dip in Science (specializing Wiremu Whanau Trust in Psychology)
Williams, Sheena
Bachelor of Teaching in Early Childhood
Peter Samuel Jackson
Williams, Takarangi
Electrician
Koroniria Okeroa
"I've always been passionate about solving problems using technology and the internship allowed me to get back to where my mum comes from, so I am really honoured to have been able to help my people." Rere-No-A-Rangi Pope PKW-Victoria University Postgraduate Scholarship Recipient
103
Shareholder Support
Cashell, Nathaniel
Ann Barber
Chase, Tyson
Jonathan Murray
Davison, Riley
Sarah Hera Matangi
Dooney, Sara
Patricia Jill Affleck
Geary, Shyla Kay
Taranaki M훮ori Trust Board - Wharehoka Wano
Graham, Izayah
Charmaine Hoeta
Hemara-Tylden, Grace
Puanani Hemara
Hemara-Tylden, Maia
Puanani Hemara
Irving, Samantha
Judy Richards
Kapa, Tarawau
A.T.G. Abraham Whanau Trust
Katu, Tristan Tyrel
Judy Richards
King, Maia
Bernard King
Langton, Ethan
Rex Bruce Langton
Luke, Tiare Vera
Hina Lucy Luke
Luke, Kearin Morgan Parata
Hina Lucy Luke
Luke-Royal, Rongomai Miriam
Hina Lucy Luke
Luke-Royal, Taurua Nganeko
Hina Lucy Luke
Mason, Tyrese
Toherangi Whanau Trust
Morgan-Edwards, Tiahorangi Garrick
Riwai Morgan Trust - Trustee Paul Morgan
Muru-King, Niki
Bernard King
Parata, Ngapera Tapuikura
Kathryn Tapiki
Pauro, Cruz
Raymond Tuuta
Pauro, Connor
Raymond Tuuta
Pepere, Judah James
Mana Jenkins
Pepere, Torrence Kahui
Mana Jenkins
Pickering, Hine-aa-rangi
Anifred Edith Horiana Marriner
Rennie, Marino
Raewyn Kawana
Ritai, Ngatupara
Pamela Te Urumairangi Ritai
Ropitini, Vince
Janice Ann Ropitini
Scruton-Nepe Apatu, Analia
April Gaye Scruton
Simpson, Tayla
Robyn Ceclia Edwin
Simpson, Jorja
Robyn Ceclia Edwin
Stewart, Anne
Logan Stewart
Styles, Paige
April Gaye Scruton
Taamaru, Cheyne-Jackson (CJ)
Robyn Davey
Te Teira-Taylor, Te Ohorere
Jonathan Murray
Witehira, Shaye Leigh
Matau Matenga Baker
TARANAKI COMMUNITY GRANTS Manukorihi P훮 Reserve Trust
Te Atiawa M훮ori Rugby Club
Para Kore Marae Incorporated
Te Korowai o Ng훮ruahine Trust
HE ORANGA
Recipient
PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS & GRANTS
NATIONAL CERTIFICATE IN EDUCATION ACHIEVEMENT
Gemma Toa at PKW AGM, Owae Marae.
20 19 PARININIHI KI WAITOTARA
TRUST
FINANCIAL STATEMENTS for the year ended 30 June 2019
PERFORMANCE REPORT - 30 JUNE 2019 Auditor report
96
NON-FINANCIAL INFORMATION Entity information Statement of service performance
99 100
FINANCIAL INFORMATION Statement of financial performance
101
Statement of financial position
102
Statement of cash ï¬&#x201A;ows
103
Statement of accounting policies
104
Notes to the performance report
105
1 Analysis of revenue
105
2 Analysis of expenses
106
3 Analysis of assets and liabilities
107
4 Accumulated funds
108
5 Commitments and contingencies
108
6 Related party transactions
109
7 Events after the balance date
109
106
Independent Auditor’s Report Independent Auditor’s Report To the Beneficiaries of Parininihi ki Waitōtara Trust Report on the audit of the performance report
To the Beneficiaries of Parininihi ki Waitōtara Trust
Opinion
Report on the audit of the performance report In our opinion, the accompanying performance report of Parininihi ki Waitōtara Trust (the Trust) on 109: Opinionpages 399toto13:
We have audited the accompanying performance report which comprise:
—
Independent Auditor’s R
The statement of financial position as at 30
June i. Present fairly in all material respects the Trust’s In our opinion, the accompanying performance We have audited the2019; accompanying performance financial position as at 30 June 2019 report of Parininihi ki Waitōtara Trust (the Trust) on and itsreport which —comprise: The statements of financial performance and pages 3 to 13:financial performance and cash flows for the cash of flows for the year then — The statement financial position as atended; 30 year then ended on that date; June 2019; i. Present fairly in all material respects the Trust’s — Notes, including a summaryof ofParininihi significant To the Beneficiaries ki Waitōtara Trust Complyaswith PBE Simple financialii.position at 30 June 2019Format and its Reporting accounting policies and other explanatory — The statements of financial performance and Standard Accrual (Not For Profit); and financial performance and cash flows for the Report on the audit of the performance report cash flowsinformation; for the year and then ended; year then onreport that date; iii. ended Suitably the service performance — The statement of service performance and — Notes, including a summary of significant information required byReporting Public Benefit Entity ii. Comply with PBE Simple Format entity information on page 99. 3. Opinion accounting policies and other explanatory Reporting Standard Standard - Financial Accrual (Not For Profit); and 48 ('PBE FRS 48') information; and in the statement of service performance. In our opinion, the accompanying performance We have au iii. Suitably report the service performance reportperformance of Parininihi ki Waitōtara Trust (the Trust) on report whic — The statement of service and information required by Public Benefit Entity entity information onpages page 33.to 13: — The sta Financial Reporting Standard 48 ('PBE FRS 48') June 2 i. Present fairly in all material respects the Trust’s in the statement of service performance. financial position as at 30 June 2019 and its Basis for opinion — The sta financial performance and cash flows for the cash flo We conducted our audit in accordance with International Standards on Auditing Zealand) (NZ)’), and year(New then ended on(‘ISAs that date; the audit of information PBE FRS 48 requires to be included in the statement of service performance, in — Notes, Comply with3000 PBE(Revised) Simple Format Reporting accordance the International Standard on Assurance Engagements ii. (New Zealand) Basis forwith opinion accoun Standard Accrual (Not For Profit); and Assurance Engagements Other than Audits or Reviews of Historical Financial Information ('(ISAE (NZ) 3000'). informa We conducted our audit in the accordance with International Standards on Auditing Zealand) (‘ISAs (NZ)’), andfor our We believe that audit evidence we have obtained is sufficient and(New appropriate toreport provide basis iii. Suitably thea service performance — The sta the audit ofopinion. information PBE FRS 48 requires to be included in the statement of service performance, in information required by Public Benefit Entity entity i accordance with the International Standard on Assurance Engagements (New Zealand) 3000 (Revised) Reporting Standard 48 ('PBE FRS 48') are independent theAudits Trust in Professional EthicalFinancial Standard (Revised) Assurance We Engagements Other of than or accordance Reviews of with Historical Financialand Information ('(ISAE 1 (NZ) 3000').Code of in the statement of service performance. for audit Assurance Practitioners issued byisthe New Zealand Auditing and Assurance Standards We believeEthics that the evidence we have obtained sufficient and appropriate to provide a basis for our Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (‘IESBA opinion. Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the We are independent of the Trust in accordance with Professional and Ethical Standard 1 (Revised) Code of IESBA Code. Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the Basis forresponsibilities opinion for Our responsibilities under ISAs (NZ) and ISAE (NZ)of3000 arefor further described in the auditor’s International Ethics Standards Board for Accountants’ Code Ethics Professional Accountants (‘IESBA the audit of the performance report section of our report. Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the We conducted our audit in accordance with International Standards on IESBA Code. Other than in our capacity as auditor we have no relationship with, or interests Trust. PBE FRS 48 requires to be included in the sta the auditin, of the information accordance the International Our responsibilities under ISAs (NZ) and ISAE (NZ) 3000 are further described in the auditor’swith responsibilities for Standard on Assurance Engagemen Assurance Engagements Other than Audits or Reviews of Historical F the audit of the performance report section of our report. We believe that the audit evidence we have obtained is sufficient and Other than in our capacity as auditor we have no relationship with, or interests in, the Trust. opinion.
We are independent of the Trust in accordance with Professional and Ethics for Assurance Practitioners issued by the New Zealand Auditing International Ethics Standards Board for Accountants’ Code of Ethics f Code’), and we have fulfilled our other ethical responsibilities in accord IESBA Code.
Our responsibilities under ISAs (NZ) and ISAE (NZ) 3000 are further de the audit of the performance report section of our report.
Other than in our capacity as auditor we have no relationship with, or i
Other information The Committee of Management, on behalf of the Trust, are responsible for the other information included in the entity’s Entity Information. Our opinion on the performance report does not cover any other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the performance report our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the performance report or our knowledge obtained in the audit or otherwise appears materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Other matter The performance report of Parininihi ki Waitōtara Trust, for the year ended 30 June 2018, was audited by another auditor who expressed an unmodified opinion on those statements on 20 September 2018.
Use of this independent auditor’s report This independent auditor’s report is made solely to the Beneficiaries as a body. Our audit work has been undertaken so that we might state to the Beneficiaries those matters we are required to state to them in the independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Beneficiaries as a body for our audit work, this independent auditor’s report, or any of the opinions we have formed.
Responsibilities of the Committee of Management for the financial statements The Committee of Management, on behalf of the Trust, are responsible for:
—
The preparation and fair presentation of the performance report in accordance with generally accepted accounting practice in New Zealand (being PBE Simple Format Reporting Standard - Accrual (Not For Profit));
—
Implementing necessary internal control to enable the preparation of a performance report that is fairly presented and free from material misstatement, whether due to fraud or error;
—
The preparation of a statement of service performance that complies with the requirements of PBE FRS 48; and
—
Assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations, or have no realistic alternative but to do so.
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108
Auditor’s responsibilities for the audit of the performance report Our objective is:
—
To obtain reasonable assurance about whether the performance report as a whole is free from material misstatement, whether due to fraud or error;
—
Perform procedures to determine whether the service performance information required by PBE FRS 48 has been suitably reported in the statement of service performance; and
—
To issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs NZ will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this performance report. A further description of our responsibilities for the audit of this performance report is located at the External Reporting Board (XRB) website at: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-8/ This description forms part of our independent auditor’s report.
KPMG Tauranga 6 September 2019
Parininihi ki Waitotara Trust ENTITY INFORMATION FOR THE YEAR ENDED 30 JUNE 2019
Entity's Purpose or Mission: Parininihi ki Waitotara Trust (the Trust) works on behalf of the Parininihi ki Waitotara Incorporation Shareholders and the Taranaki Māori community, focusing its efforts on three priorities: developing the community; facilitating active participation; and leadership. Each year Parininihi ki Waitotara Trust will support the educational and cultural aspirations of Taranaki Māori by the following clauses: (i) In making grants or loans towards the cost of the construction, establishment, management, maintenance, repair or improvement of Māori meeting houses, halls, charges and church halls, villages, marae or cemeteries; (ii) In establishing, maintaining and equipping hostels for the purpose of providing either permanent or temporary accommodation; (iii) In making grants or loans towards the establishment of recreational centers for the common use of any Māori community and for such other uses as the Trustees see fit; (iv) For assisting in the establishment of schools, and in the equipping, managing and conducting of schools;
- in making grants of money, the equipment or material to schools or other educational or training institutions or
- by making grants to funds established or bodies formed for the promotion of the education of Māori or
- for assisting Māori to obtain training or practical experience necessary or desirable for any trade or occupation
(v) In providing scholarships, exhibitions, bursaries or other methods of enabling individuals to secure the benefits of education or training, or in making grants to education boards or other educational bodies for scholarships, exhibitions or bursaries, in providing books, clothing or other equipment for the holders of scholarships or other individuals or in making grants for any such purpose, or in making grants generally for the purpose of assisting the parents or guardians or children to provide for their education or training for any employment or occupation; (vi) In providing, maintaining, or contributing towards the cost of residential accommodation for children in relation to their education or training; (vii) In the promotion of schemes to encourage the practice of Māori arts and crafts, the study of Māori lore and history and the speaking of the Māori language; (viii) In supporting assisting maintaining or promoting such further or other projects or purposes for the benefit of the Māori people as the trustees may from time to time approve as an object suitable to be brought within the scope of the trusts hereby created.
Legal Name of Entity: Parininihi ki Waitotara Trust Type of Entity and Legal Basis (if any): Charitable Trust Registration Number: CC36303 Entity Structure: Governance: The Trustees of the Parininihi ki Waitotara Trust are the Committee of Management members of Parininihi ki Waitotara Incorporation, plus a representative elected by the shareholders at the annual general meeting. Main Sources of the Entity's Cash and Resources: The Parininihi ki Waitotara Incorporation makes an annual grant calculated on 10% of the dividend paid to shareholders. The Parininihi ki Waitotara Trust also draws interest from a $2.9m loan to Parininihi ki Waitotara Incorporation. Additional grant revenue is sourced from third parties. Main Methods Used by the Entity to Raise Funds: The Parininihi ki Waitotara Trust is not an active fund raiser. Entity's Reliance on Volunteers and Donated Goods or Services: The Parininihi ki Waitotara Trust is not reliant on volunteers or donated goods or services. Physical Address: 35 Leach Street New Plymouth, New Zealand Postal Address: PO Box 241, New Plymouth 4340, New Zealand Phone: +64 (06) 769 9373 Fax: +64 (06) 757 4206
Email: office@pkw.co.nz Web: www.pkw.co.nz
Facebook: www.facebook.com/ Parininihi-ki-Waitotara-Incorporation377456922465330/?ref=page_ internal
PARININIHI KI WAITOTARA TRUST - FINANCIAL STATEMENTS
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110
STATEMENT OF SERVICE PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2019
Description
Established in 1983 the purpose of the Parininihi ki Waitotara Trust as per the deed, is to support the education and cultural aspirations of Taranaki Māori. This is reinforced by the Trust’s mission of ‘Seeding Taranaki potential – building success’ and reflected by the Trust’s outcomes for this period: 1. Shareholders and beneficiaries cherish their relationship with Parininihi ki Waitotara; 2. Agri-business opportunities are promoted to the community; and 3. Parininihi ki Waitotara is recognised as a valued partner.
Description of Quantification of the Parininihi ki Waitotara Trust's Output
Output - Active Participation Distribute the Trust's grant programme to Taranaki Māori as part of building capacity and supporting cultural aspirations. Increasing participation by the number of: Education and tertiary recipients Sporting and cultural grant recipients Prior year cultural grant withdrawn Community grant recipients Total Grant Investment
The accompanying notes form part of these financial statements.
Actual Numbers This Year
230 1 (1) 4 234
$'000
Budget This Year
228 5 (5) 18 246
165 5 3 173
$'000
Actual Numbers Last Year
$'000
206 25 19 250
232 4 2 238
196 32 20 248
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2019
Revenue Grants Interest, dividends and other investment revenue
Note
Actual This Year $'000
Budget This Year $'000
Actual Last Year $'000
1 1
258 156
223 151
191 156
414
374
347
121 246
124 250
121 248
367
374
369
47
-
(22)
Total Revenue Expenses Costs related to providing goods or services Grants and donations made Total Expenses Surplus/(Deficit) for the Year
The accompanying notes form part of these financial statements.
2
PARININIHI KI WAITOTARA TRUST - FINANCIAL STATEMENTS
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112
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019
Note
Actual This Year $'000
Budget This Year $'000
Actual Last Year $'000
3 3 3
77 3,069 40 3,186
108 3,043 3,151
82 3,055 3,137
3 3
4 4
7 7
3,189
3,155
3,144
18 18
8 8
20 20
18
8
20
3,171
3,147
3,124
1,888 1,283 3,171
1,864 1,283 3,147
1,841 1,283 3,124
Assets Current Assets Bank accounts and cash Related party receivables Debtors and accrued income Total Current Assets Non-Current Assets Property, plant and equipment Total Non-Current Assets Total Assets Liabilities Current Liabilities Creditors and accrued expenses Total Current Liabilities
3
Total Liabilities Total Assets less Total Liabilities (Net Assets) Accumulated Funds Accumulated surpluses Reserves Total Accumulated Funds
The accompanying notes form part of these financial statements.
4
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019
Actual This Year $'000
Budget This Year $'000
Actual Last Year $'000
210 165 375
211 151 362
35 156 191
(42) (81) (257) (380)
(29) (84) (275) (388)
(6) (106) (270) (382)
(5)
(26)
(191)
-
-
235 235
-
-
(67) (67)
-
-
168
Net Decrease in Cash Opening Cash Closing Cash
(5) 82 77
(26) 134 108
(23) 105 82
This is represented by: Bank Accounts and Cash
77
108
82
Cash Flows from Operating Activities Cash was received from: Grant's received Interest Received Cash was applied to: Payments to suppliers Payments to employees Payments to grant recipients
Net Cash Flows from Operating Activities Cash flows from Investing and Financing Activities Cash was received from: Receipts from Parininihi ki Waitotara Incorporation
Cash was applied to: Payments to PKW Farms LP
Net Cash Flows from Investing and Financing Activities
The accompanying notes form part of these financial statements.
PARININIHI KI WAITOTARA TRUST - FINANCIAL STATEMENTS
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114
STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2019
Basis of Preparation
Bank Accounts and Cash
Parininihi ki Waitotara Trust has elected to apply PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000. All transactions in the Performance Report are reported using the accrual basis of accounting. The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future.
Bank accounts and cash in the Statement of Cash Flows comprise cash balances and bank balances (including short term deposits) with maturities of 12 months or less.
Revenue
Changes in Accounting Policies
Related Party Receivables Related party receivables includes receivables which are stated at their estimated net realisable value. Loans are based on the balance of direct attributable transaction costs, and are included in current assets as they are repayable on demand.
Grant income is accounted for There have been no changes in depending on whether or not any accounting policies during the conditions are attached. Where no financial year (last year - nil). conditions are attached, the revenue is recognised on an accruals basis. Where conditions are attached, the revenue is recognised once the conditions are satisfied. Interest income is recognised on an accruals basis. Interest income is accounted for when cash is received. This is revenue from the loan to PKW Incorporation and from cash balances in the bank. Goods and Services Tax (GST) Parininihi ki Waitotara Trust is not registered for GST. Therefore amounts recorded in the Performance Report are inclusive of GST (if any). Income Tax Parininihi ki Waitotara Trust is wholly exempt from New Zealand income tax having fully complied with all statutory conditions for these exemptions.
NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: ANALYSIS OF REVENUE
Revenue Item Revenue from providing goods or services
Analysis Grant Income Parininihi ki Waitotara Incorporation Grant Income - third parties Total
Revenue Item Interest, dividends and other investment revenue
Analysis Interest Income Parininihi ki Waitotara Incorporation Interest income - bank Total
This Year $'000
Last Year $'000
173
156
85
35
258
191
This Year $'000
Last Year $'000
153
154
3
2
156
156
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116
NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019
NOTE 2: ANALYSIS OF EXPENSES
Expense Item Volunteer and employee related costs
Analysis Salary and wages Total
Expense Item Costs related to providing goods or services
Analysis Trustee fees Consultancy Legal expenses Total
Expense Item Other expenses
Analysis Other admin expenses Total
This Year $'000 73
Last Year $'000 98
73
98
This Year $'000 8 30 -
Last Year $'000 8 2 1
38
11
This Year $'000 10
Last Year $'000 12
10
12
NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019
This Year $'000
Last Year $'000
Analysis ANZ bank account TSB term deposit
1 76
12 70
Total
77
82
1,524
1,524
Parininihi ki Waitotara Incorporation loan
1,371
1,379
Grant receivable Total
174 3,069
152 3,055
Analysis Grants receivable
40
-
Total
40
-
Analysis Property, plant & equipment
3
7
Total
3
7
Analysis Trade and other payables Grants payable
9 9
20
18
20
NOTE 3: ANALYSIS OF ASSETS AND LIABILITIES
Asset Item Bank accounts and cash
Asset Item Related party receivables
Asset Item Debtors and accrued income
Asset Item Other non-current assets
Liability Item Creditors and accrued expenses
Analysis Parininihi ki Waitotara Incorporation advance
Total
PARININIHI KI WAITOTARA TRUST - NOTES TO THE PERFORMANCE REPORT
117
118
NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019
NOTE 4: ACCUMULATED FUNDS This Year
Description Opening Balance Surplus Closing Balance
Last Year
Description Opening Balance Deficit Closing Balance
Capital Contributed by Owners or Members $'000
Accumulated Surpluses or Deficits $'000
Reserves* $'000
Total $'000
-
1,841 47 1,888
1,283 1,283
3,124 47 3,171
Capital Contributed by Owners or Members $'000
Accumulated Surpluses or Deficits $'000
Reserves* $'000
Total $'000
-
1,863 (22) 1,841
1,283 1,283
3,146 (22) 3,124
* Reserves of $1.283m represents the initial and subsequent PKW Incorporation unclaimed dividends allocation to the PKW Trust.
NOTE 5: COMMITMENTS AND CONTINGENCIES
Commitments As at 30 June 2019 the Entity had no capital commitments (2018: Nil). Contingent Liabilities and Guarantees As at 30 June 2019 the Entity had no contingent liabilities or assets (2018: Nil).
NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2019
NOTE 6: RELATED PARTY TRANSACTIONS
Description of Related Party Relationship (a) Parent transactions During the year the Trust received funds from, and invested funds with, its parent entity Parininihi ki Waitotara Incorporation as follows: Interest Income Grant Income
This Year Value of Transactions $'000
Last Year Value of Transactions $'000
153 173 326
154 156 310
8 8
235 235
This Year Amount Outstanding $'000
Last Year Amount Outstanding $'000
1,371 1,524 174 3,069
1,379 1,524 152 3,055
The amounts outstanding with Parininihi ki Waitotara Incorporation at balance date were: Loan to Parininihi ki Waitotara Incorporation Advance to Parininihi ki Waitotara Incorporation Accounts receivable
Total accounts receivable relate to amounts receivable from Parininihi ki Waitotara Incorporation. Interest is receivable at the average group rate of 5.28% (2018: 5.15%). The balances are receivable on demand. (b) Key Management Trustees of Parininihi ki Waitotara Trust Hinerangi Edwards (Chair) Beverly Gibson David MacLeod Taaringaroa Nicholas Claire Nicholson Hinerangi Raumati-Tu'ua Dion Tuuta Darryn Ratana (Shareholder Representative) The above Trustees are on the Committee of Management for the Parent, Parininihi ki Waitotara Incorporation, except Darryn Ratana.
NOTE 7: EVENTS AFTER THE BALANCE DATE There were no events that have occurred after the balance date that would have a material impact on the Performance Report. (2018: Nil).
PARININIHI KI WAITOTARA TRUST - NOTES TO THE PERFORMANCE REPORT
119
120
NOTES
NOTES PARININIHI KI WAITOTARA INCORPORATION - SHAREHOLDER NOTES
121
PARININIHI KI WAITOTARA INCORPORATION 35 Leach Street
New Plymouth | New Zealand
PO Box 241 | New Plymouth 4340