2014 Annual Report. Whakamana te puna mauri ora o Ngäti Rärua kia kaha pupuri ai nga hekenga ä muri ake tonu

Transcription

1 Whakamana te puna mauri ora o Ngäti Rärua kia kaha pupuri ai nga hekenga ä muri ake tonu Realise the wellspring of vital identity that is Ngäti Rärua, to strengthen all the migrations yet to come Annual Report

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3 Contents Chair s Report 4 Finance Report 9-60 Offices of Ngāti Rārua 61

4 Chair s Report E pari ana te tai ki hea E pari ana te tai ki hea E pari ana te tai ki te awa, ki ake ake, ki te urunga o te kauheke, kauheke kaumatua e, he Atua! Nā tātou te wa! It s our time! Tihei Mauriora. Welcome to this annual report of Te Rūnanga o Ngāti Rārua for the period 1 April 2013 to 31 March Without doubt the year under review is highlighted by the passage of the Ngāti Koata, Ngāti Rārua, Ngāti Tama ki Te Tau Ihu, and Te Ātiawa o te Waka a Māui Claims Settlement Act 2014, which passed its third reading in April of this year. We therefore take this opportunity to recall the several milestones that got us to this historic point. Iwi success, like our settlement, is a long process that often comes at a high personal cost. Following a successful vote to accept the settlement offer negotiated with the Crown, the Deed of Settlement was signed at Te Hauhunga on 13 April This event was notable for the contingent of members from Te Ika a Maui, many of whom had never visited the Ngāti Rārua rohe before. The road to settlement has never been easy though, and on 15 May the Waitangi Tribunal released its decision on an application from the Ngāti Rārua Ātiawa Iwi Trust (NRAIT). The application for an urgent remedies hearing was soundly dismissed by Chief Judge Isaac and therefore justified our decision to oppose the case. The judgement also vindicated the decision by Olivia Hall and Rima Piggott to resign their positions on NRAIT because of a conflict of interests created by the different agendas of the two Trusts. On 6 June the Settlement Bill was introduced into Parliament; we presented our submissions to the Select Committee in Wairau on 14 August; and the bill was eventually passed into legislation in April of this year. Iwi success, like our settlement, is a long process that often comes at a high personal cost. Before the settlement bill was passed we became aware of clauses in the Trust Deeds that prohibited people from holding the position of Trustee while at the same time being employed by the Trust. This affected a number of Trustees, including those that held Directorships, myself included, so there was a change in Trustees on the Board. I acknowledge the tireless work for Ngāti Rārua that Molly Luke and John Morgan both provided. They led the Iwi at the governance and management level and also within the community and business sectors. Their knowledge, determination and passion was integral for Ngāti Rārua in achieving settlements with the Crown, and in enabling us as an Iwi to determine our future. I also thank the Te Rūnanga o Ngāti Rārua Board for their resilience and decisiveness during a year of intense change and development. How we are organised The settlement process required us to establish an additional Trust, so as a Rūnanga we now comprise the Ngāti Rārua Iwi Trust, which is a charitable trust and therefore enjoys tax free status; and the Ngāti Rārua Settlement Trust, which is a Māori Authority and is therefore liable for tax. The Iwi Trust (NRIT) was established to receive fisheries settlement redress and fully owns three companies Te Hauora o Ngāti Rārua Ltd, Te Tao Tangaroa Ltd, and the Ngāti Rārua Asset Holding Company Ltd. These are all covered by the provisions of the Charitable Trust so they are also tax exempt. The Settlement Trust (NRST) was established to receive the 4 Te Rünanga o Ngäti Rärua

5 cultural and commercial redress for historical grievances. Individual entities will be set up depending on the future investment strategy of the Rūnanga. This structure is governed by the Board of Trustees, comprising trustees elected by you each year for a term of three years. The Trustees are responsible for employing a Chief Executive to implement the strategic plan and carry out other activities that will benefit the Iwi through the setting of annual key performance indicators (KPI s) each year. The Chief Executive in turn is responsible for assembling staff so that the office can support the Trustees and give effect to the annual business plan. With the settlement process almost fully completed, the Trustees will now place more focus on the implementation of our development strategy in pursuit of a viable Ngāti Rārua economy, society and culture by the year 2040 the 200th year of the Treaty of Waitangi. Te Rūnanga o Ngāti Rārua Structure NGĀTI RĀRUA INVESTMENT TRUST Charitable Status 0% Tax Trustees same as NRST NGĀTI RĀRUA SETTLEMENT TRUST Maori Authority 17.5% Tax Trustees same as NRIT Whakawhanaungatanga Whakawhanaungatanga, strengthening our connections with each other as Ngāti Rārua, and connecting with others from this base, is both a goal to aim for, and a way of doing things. We are endeavouring to make whakawhanaungatanga a constant approach across a range of engagements. THONR Health Directors: Some with industry experience AHC Investment Directors: Some with industry experience TTTL Holding Directors: Some with industry experience On 25 May 2013 Ngāti Rārua attended the celebration of (Sir) Mark Solomon s knighthood, hosted by Kāti Kuri at Kaikoura. We took the opportunity to support a previous suggestion from Tā Mark for Iwi Chairs to establish a forum for collective korero. This proposal was endorsed later in the year and, in January 2014, Ngāti Rārua hosted the first Te Waka a Maui Iwi Chairs Forum for the 2014 year at Te Hauhunga. We have also been pursuing an alternative approach to engaging with Ngai Tahu that recognises our unique historical relationship. By the end of March 2014 we were poised to meet formally with Ngāti Waewae at Arahura. This kaupapa would see us establish a marae to marae relationship between our Iwi based on our whakapapa links to Te Tai Poutini. In October 2013, Lee Luke and Arthur Phillips supported a Te Hauora o Ngāti Rārua Whakawhanaungatanga Day by giving an account of Ngāti Rārua history followed by a visit around local Ngāti Rārua historic sites. Te Rünanga o Ngäti Rärua 5

6 Strategic Direction Despite the focus on settlement with the Crown, the Rūnanga has also maintained its strategic focus. We have a measured approach to development. The next two years, through to 31 March 2016, will focus on building our capacity to deliver social, cultural and economic results for members. We are endeavouring to make whakawhanaungatanga a constant approach across a range of engagements. The following five years, to 31 March 2021, will involve applying this capacity alongside Iwi members to increase the level and quality of results in these areas. The objective is to be in a position where we can engage in two decades of accelerated development. In keeping with our business plan we invested in infrastructure to improve our IT platform, which is now Cloud-based and allows Trustees more direct access to Rūnanga information. We have also implemented the Xero Cloud-based accounting system, one advantage of which is the ability to monitor bank account details and payments as they occur. We also trialled a project to improve the quality of our membership register over the December-January period, resulting in the registration of 14 new members, 43 new postal addresses, 15 new addresses and 42 new phone numbers. On the cultural front, we completed a rigorous process to select an architect to work with the Marae Establishment Project Team when it has concluded its consultation and information hui with Iwi members. Apart from the share and bond investment portfolio of $3m, the other major investment project currently under action is the construction of a commercial building at Kinross Street in Blenheim. The project has a contract with a blue chip national business firm, and will utilise the other tenancy for an office if no other tenants are interested. This project has raised the visibility of Ngāti Rārua in the district. The Financial Year in Review The financial highlights for the period ending 31 March 2014 were the beginning of the transfer of settlement assets to the Ngāti Rārua Settlement Trust ($3.5m cash), and the investment in the commercial property on Kinross Street of $1.5m which will generate annual rental income of $100, 000. The Rūnanga comprises two Trusts; the Ngāti Rārua Iwi Trust (NRIT) and the Ngāti Rārua Settlement Trust (NRST). Graph 1 illustrates the overall performance of the Rūnanga in terms of NRIT and its subsidiary companies, while the shaded area on the right describes the performance of the two Trusts. The graph shows that the subsidiary companies maintained their historic levels of performance. Te Hauora o Ngāti Rārua (THONR) achieved a $30, 349 lift in surplus; the Asset Holding Company (AHC) achieved a modest increase of $8, 125, to record a surplus of $247, 266; and the Te Tao Tangaroa Ltd (TTTL), with a modest increase of $13, 804, recorded a deficit of $31, 025. It is our time to acknowledge our identity in Te Tau Ihu and Te Waipounamu. It should be noted that TTTL performs a management function for the fisheries assets held by AHC and NRIT, and the associated income goes directly to those entities. The increase in TTTL s expenses were due to the need for additional Directors meetings as they developed a fisheries strategy going forward. The Company also incurred costs 6 Te Rünanga o Ngäti Rärua

7 Graph 1: Change in Performance of Unconsolidated Entities (comparison between year ending 31 March 2013 and year ending 31 March 2014) $2,000,000 $1,903,787 $1,800,000 $1,600,000 Reimbursment from NRST and Dividends 2014 $1,400,000 $1,200, $1,000,000 $800,000 NZ Dollars $ $600,000 $400,000 $200,000 $0 ($200,000) ($400,000) ($600,000) ($800,000) ($1,000,000) ($1,200,000) $92,679 $123,028 Te Hauora o Ngati Rarua $247,266 Ngati Rarua Asset Holding Co Ltd $239,141 -$31,025 Te Tao Tangaroa Ltd -$17,221 Ngati Rarua Iwi Trust -$367,151 Reimbursement to NRIT for ratification expenses Ngati Rarua Settlement Trust 0 ($1,400,000) ($1,600,000) -$1,430,439 Entity representing the Rūnanga at various fisheries related forums. The greatest change in performance from 2013 relates to NRIT itself. In terms of actual operations, NRIT recorded an increased deficit of $453, 471, up $86, 320 from the previous year. This increase is explained by the addition of 2.5 FTE s to staff; the costs of defending the NRAIT case at the Waitangi Tribunal last May; and hui costs associated with the signing of the Deed of Settlement and then the first and third readings of the settlement bill at Parliament. The final surplus figure of $1, 903, 787 reported for NRIT comprises two significant end of year adjustments approved by the Auditor. The first adjustment was for a reimbursement of historic expenses incurred by NRIT on behalf of NRST. This was conservatively capped at $1, 462, 028 over the last five years. The second adjustment eliminated the effects of transactions between the Rūnanga entities so that going forward the financial statements will allow valid year to year, and entity to entity comparisons. Graph 2 describes the total asset base of the Rūnanga showing asset types, and the entities holding these assets. Thus, of a total asset base of $20, 143, 151 (an increase of $3, 034, 948 from 2013), 80% is comprised of Investments and Quota. As settlement progresses, Cash and Land will increase as a proportion of the total asset base, and the strategic objective will be moving from these asset types into Te Rünanga o Ngäti Rärua 7

8 Graph 2: 2014 Group (Consolidated) Asset Profiles (by Category and Entity - Total Assets Value $20,143,151) 3,056,309 "Other" category made up of: Ngati Rarua Settlement Trust $10,000,000 8,430,366 3,714, ,191 Bonds Debtors Accruals Prepayments 16.2% 35.4% 0.7% 47.7% Ngati Rarua Iwi Trust Te Hauora o Ngati Rarua Ltd Ngati Rarua Asset Holding Co Ltd Te Tao Tangaroa Ltd NZD $1,000,000 2,610, ,494 $100,000 asset classes that generate income and produce growth to the capital base. The final graph (Graph 3) presents the total equity of the Rūnanga the value of all assets less any claims on those assets in the form of liabilities. Total equity stands at $19, 397, 971 and this translates into a 96% equity percentage. This reinforces the conservative financial structure of the Rūnanga with highly liquid assets and virtually no debt, which provides a solid foundation for future development. Detailed financial information follows in the financial statements for the Rūnanga as a whole, and the statements for each of the Trusts. Graph 3: Investments / Quota = 80% 2014 Consolidated Equity (Spread by Entity; $19,397,971 Total) 40, , , ,035 Land, and Plant & Equipment = 14% Cash = 3% 48,029 83, ,286 Other = 2% Ngāti Rārua te Hīkoi a Muri Our journey to resolution began in 1992, and events over the 2014 calendar year have moved Ngāti Rārua into an exciting phase. It is our time to acknowledge our identity in Te Tau Ihu and Te Waipounamu. The statutory recognition that follows from our Settlement Act means the Iwi of Ngāti Rārua never again has to argue its right to exist and how the Iwi will speak for itself; from now on, our challenge is to ensure we have the ambition to make choices that lead to a thriving Iwi. Your Trustees and I are excited to be a part of this new hīkoi with you. Mauri Ora! 60, ,938 47,578 Joint Venture = 1% 1% 11% 22% Ngati Rarua Iwi Trust Te Hauora o Ngati Rarua Ltd Ngati Rarua Asset Holding Co Ltd Te Tao Tangaroa Ltd Andrew (Anaru) Luke Chair 5% Ngati Rarua Settlement Trust 61% 8 Te Rünanga o Ngäti Rärua

9 Finance Report Te Rūnanga o Ngāti Rārua Group CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2014 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Table of contents As at 31 March 2014 Financial Statements Page Statement of financial position 1 Statement of financial performance 3 Statement of accounting policies 4 Notes to the financial statements 8 Audit report 17 Te Rünanga o Ngäti Rärua 9

10 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Statement of financial position As at 31 March 2014 Group Group Note NZD $ NZD $ Current Assets Cash 572, ,519 Accounts Receivable 99, ,909 Interest Receivable 209,989 Prepayments 14,090 Joint Ventures 197,277 56,500 GST 4,029 10,629 Other Debtors 25,084 1,122, ,557 Non Current Assets Fixed Assets 8 2,859,648 1,148,441 Investments at Bank 5 11,838,765 10,725,763 Shares 5 355, ,924 Intangibles/Quota 5 3,966,518 3,966,518 19,020,750 16,196,646 Current Liabilities Payables/Accruals 371, ,712 Joint Ventures 39,130 35,082 Property & Provisions 290,849 Settlement in Advance 0 500,000 Income in Advance 44, , ,180 1,183,948 Net Assets 19,397,971 15,924,255 Equity Retained Earnings 15,205,648 15,258,199 Asset revaluation reserve 718, ,607 Dividends 0 0 Koha 0 Net surplus (deficit) for the period 3,473,716-52,551 Total Equity 3 19,397,971 15,924,255 The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. 10 Te Rünanga o Ngäti Rärua

11 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Statement of financial position As at 31 March 2014 The financial statements have been subject to audit and should be read in conjunction with the Auditors Report. For and on behalf of the Trustees Date: 23 September 2014 as Trustee Andrew (Anaru) Luke Chair as Trustee Renee Thomas Trustee The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. Te Rünanga o Ngäti Rärua 11

12 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Statement of financial performance For the year ended 31 March 2014 Group Group Note NZD $ NZD $ Income Interest Received 403, ,967 Dividends Received - 8,075 Reimbursements 27,759 51,886 Other Income 100,330 - Health 1,243,636 1,267,703 Nett Farming 2,089 1,624 Nett Fishing 351, ,946 Grants 26,450 - Nett Claims (43,717) (325,308) 2,111,791 1,859,893 Expenses Operating Expenses , ,206 Interest (112) - Health 878, ,235 Standing Charges 47,890 47,649 Administration 268, ,023 Depreciation 31,572 26,092 Audit 23,076 10,650 Accruals 7,510 6,589 2,194,404 1,912,444 Net Surplus(Deficit) -82,613-52,551 Extra-ordinary item Settlement funds 3,056,329 - Settlement funds 500,000-3,556,329 - Surplus(Deficit) to Equity 3,473,716-52,551 The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. 12 Te Rünanga o Ngäti Rärua

13 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Reporting entity The financial statements presented here are for the entity Te Rūnanga o Ngāti Rārua Group. The group comprises of Ngāti Rārua Asset Holding Company Limited, Te Tao Tangaroa Limited, and Te Hauora O Ngāti Rārua Limited registered companies under the Companies Act 1993, and Ngāti Rārua Iwi Trust established in October 2009 and Ngāti Rārua Settlement Trust established in April For the purpose of the consolidation the parent of the group is the Ngāti Rārua Iwi Trust. Basis of preparation These financial statements comprise statements of: financial position, movements in equity, financial performance, accounting policies, and notes to these financial statements. These financial statements have been prepared in accordance with the Financial Reporting Act 1993 and with the application of Differential Reporting exemptions. Measurement Base The Trustees' consider the most appropriate measurement base for the presentation of the financial statements is an historical cost basis, modified for the revaluation of certain assets where the Trustees' believe the difference has a material affect on the statements. Assets are initially recorded at the amount of cash or cash equivalents paid (or payable) or the fair value of the consideration given (or to be given), at the time of their acquisition. Liabilities are initially recorded at the amount of proceeds received (or receivable) in exchange for the obligation, or in some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business. Differential reporting In terms of the framework for differential reporting an entity is exempt from certain requirements of the financial reporting standards if it satisfies the criteria laid down in the framework; such an entity is called a qualifying entity. Te Rūnanga o Ngāti Rārua Group qualifies for differential reporting as it is not publicly accountable and is not large (as defined in the framework). All differential reporting exemptions have been adopted, except FRS19 Accounting for Goods and Services Tax, as the financial statements are prepared GST exclusive. Property, plant and equipment Property, plant and equipment are recognised at cost less accumulated depreciation. Depreciation has been calculated using the maximum rates permitted by the Income Tax Act 2007 The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. Te Rünanga o Ngäti Rärua 13

14 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Depreciation Depreciation is calculated on a diminishing value basis to allocate the cost of the asset, less any residual value, over its estimated useful life. Depreciation has been calculated using the maximum rates permitted by the Income Tax Act 2007 as per the following: 00.0% DV % DV & 17% SL Marine farms 04.0% DV % DV Grove Road 04.0% DV % DV North Street 11.4% DV % DV Plant and equipment 14.4% DV 48.0% DV Diabetes educator assets 04.0% DV 09.0% DV Leasehold improvements 14.4% DV 48.0% DV Te Kahui o Matauranga assets 11.4% DV % DV Office furniture and equipment 28.8% DV % DV Motor vehicles 18.0% DV Tui joint venture N/A Work in progress 06.0% DV % DV & 10 yrs. SL Development Expenditure Accounting for inventories Closing stock is an approximation of stock at year end. Licence 290 Ltd stock held by Ngāti Rārua Asset Holding Company Ltd reflects the value at the date of purchase from Te Tao Tangaroa Limited. Investments Investments are carried at the lower of cost and net realisable value. Where in the Trustees' opinion there has been a permanent reduction in the value of the investments this has been brought to account in the current period. Events after balance date Where events after balance date are of such importance that non-disclosure would affect the ability of the users of the financial report to make proper evaluations and decisions, disclosure of the following is included in the notes to the accounts: (a) the nature of the event; and (b) an estimate of its financial effect, or a statement that such an estimate cannot be made. Income tax Income tax is accounted for on the Taxes Payable Method. Income tax expense in respect of the current period is equal to the income tax payable for the same period. Income tax is calculated using the current income tax rates as determined by the Income Tax Act Ngāti Rārua Asset Holding Company Limited, Te Tao Tangaroa Limited, Te Hauora O Ngāti Rārua Limited, and Ngāti Rārua Iwi Trust are charitable entities. Charitable status exempts the entities for income tax purposes under CW41 of the Income Tax Act 2007, and this exemption results in a nil provision under this policy. Ngāti Rārua Settlement Trust is a Maori Authority. Ngāti Rārua Settlement Trust was approved as a Maori Authority effective from the 1st April The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. 14 Te Rünanga o Ngäti Rärua

15 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Contingent assets and/or liabilities Contingent assets and/or liabilities are only recognised in the financial statements as a provision or liability if: (a) there is a present obligation (legal or constructive) as a result of a past event; (b) it is probable that an inflow or outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation. Goods and services tax The financial statements have been prepared on a GST exclusive basis, with the exception of accounts receivable and accounts payable which are stated on a GST inclusive basis. GST payable or refundable at balance date is shown in either current liabilities or current assets in the Statement of Financial Position. This is recommended by the New Zealand Institute of Chartered Accountants in FRS 19. Ngāti Rārua Asset Holding Company Limited, Te Tao Tangaroa Limited, Te Hauora O Ngāti Rārua Limited, and Ngāti Rārua Iwi Trust are grouped for GST purposes. Related party disclosure Where there have been material transactions between the reporting entity and its related party or parties, at any time during the reporting period, disclosure of the identity of each related party involved and the nature of the relationships is made in the notes to the financial statements. Accounting for Interests in Joint Ventures and Partnerships An interest in a joint venture is recognised by including in the respective classification categories in the financial statements of the venturer entity the amount of: (a) the venturer s share in each of the individual assets employed in the joint venture; (b) liabilities incurred by the venturer in relation to the joint venture, including the venturer s share of any liabilities for which the venturer is severally liable; and (c) the venturer s share of net expenses incurred by the venturers in relation to the joint venture. The method of accounting for interests in joint ventures and partnerships used is the line-by-line method, using the proportionate method. Under the line-by-line method, referred to in this statement as the proportionate method, each participant in an arrangement accounts for its proportionate share of each asset and liability, and of the expenses and revenues. While these may be shown separately, depending upon their materiality, they may be aggregated with other similar items of the participant. The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. Te Rünanga o Ngäti Rärua 15

16 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Financial instruments Cash and cash equivalents Cash and cash equivalents comprise of cash in bank. Trade and other receivables Trade and other receivables are stated at their net realisable value. Bad debts are written off in the year that they are identified. Payables and accrued expenses Trade payables and other accounts payable are recognised when Te Rūnanga o Ngāti Rārua Group comes obligated to make future payments resulting from the purchase of goods and services. Accrued expenses are costs incurred before balance date but no invoice has been received by either a Provider or Supplier of goods and services. Changes in accounting policies There have been no changes in accounting policy. All policies have been applied on a basis consistent with those used in the previous year. Audit The financial statements as presented have been subject to an audit, please refer to the Auditors Report. The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. 16 Te Rünanga o Ngäti Rärua

17 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March $ $ 1. CAPITAL COMMITMENTS Capital commitments as recognised at balance date. $150,000 $50,000 Trustees at a meeting on the 23 March 2013 resolved to provide and interest free loan of $50,000 to Te Awhina Marae. The loan is a for a period of five years. At a Trustee meeting in August 2014 the Trustees resolved to extinguish the loan in favour of a grant. Trustees at a meeting on the 20 March 2014 resolved to provide a $100,000 koha to Ngāti Waewae in April 2014, this was paid from funds held on behalf of the settlement trust. 2. CONTINGENT LIABILITIES Contingent liabilities recognised at balance date GROUP EQUITY Trust Capital Balance at start of year 15,205,648 15,270,704 Net surplus (deficit) for the year (82,613) (52,551) Treaty of Waitangi settlement fund 3,556,329 - Koha - other - (12,405) Koha - tangi - (100) Balance at end of year 18,679,364 15,205,648 Trust Reserves Asset revaluation reserve 718, ,607 Balance at end of year 718, ,607 Total Trust Equity 19,397,971 15,924, MAORI AUTHORITY CREDIT ACCOUNT Ngāti Rārua Settlement Trust Maori Authority credits available at balance date - - The above information must be read in conjunction with the financial statements, Statement of accounting policies, and auditors report. Te Rünanga o Ngäti Rärua 17

18 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March INVESTMENTS ANZ term deposits 5,676,991 6,146,440 ANZ investment portfolio 1,531,984 - Westpac Investment Portfolio 1,573,481 - Westpac term deposits 3,056,309 4,579,323 Guardian Trust Cashplus Mortgage Units Shares - Aotearoa Fisheries Ltd 280, ,840 Shares - Tasman Bay Ring Road Farming Ltd 35,434 35,434 Shares - Golden Bay Ring Road Farming Ltd 30,154 30,154 Shares - Tiakina te Taiao Ltd 3,000 3,000 Shares - Kahurangi Virgin Waters Ltd 6,191 6,191 Bond - Golden Bay Marine Farm 1,098 1,098 Bond - Tasman Bay Marine Farm Fish stocks quota shares 2,822,492 2,822,492 Paua quota 576, ,800 Hake quota 42,923 42,923 Scallop quota 265, ,975 Marine farm licences 297 & , ,667 Total 16,161,101 15,048,205 The beneficial interest of Ngāti Rārua in fisheries resources has been progressively distributed by the Crown commencing October In November 2011 the coastline allocation was agreed and these assets distributed. The Trust's share of fisheries assets is shown in the financial statements of Ngāti Rārua Asset Holding Company Limited as required by the Crown. The quota holdings for Paua, Hake and Scallops are valued on the basis of quota shares. The value at balance date is carried from the previous year as the Trustees feel there has been no material change. (Last years figures in brackets): Scallops 2,848,472 shares.0934/share 265,975 (265,975) Paua 1,100,257 shares.5242/share 576,800 (576,800) Hake 74,320 shares.5775/share 42,923 (42,923) The Trust holds a one third share of marine farm licence numbers 297 & 460. The farms are operated via a joint venture with other parties, the Trust's involvement via Te Tao Tangaroa Limited. The Trust's share is reflected in the financial statements based on an independent valuation dated March 2012 at $256,667. The above information must be read in conjunction with the financial statements, Statement of accounting policies, and auditors report. 18 Te Rünanga o Ngäti Rärua

19 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March REVALUATION OF QUOTA HOLDINGS AND SHARES Ngāti Rārua Asset Holding Co Ltd own quota shares in various fish stocks and income shares in Aotearoa Fisheries Limited The quota has been revalued as per an independent valuation. No quota has been sold or exchanged outside of the ACE system during the year ended 31 March The quota holdings for the various fish stocks are valued on the basis of quota shares. The current market value was last advised by an independent party for the year ended 31 March The Trustees do not believe the value of these shares has changed materially in the last 12 months and have carried the value and no valuation was undertaken in the 2014 year Fish stock valuation $2,822,491 $2,822,492 Number of quota shares held 75,233,496 75,233,496 AFL share valuation $280,840 $280,840 Number of AFL shares held $ $ 7. TAXATION Profit/(Loss) Reconciliation Profit (loss) as per income statement (82,613) (52,551) Net profit (loss) before tax adjustments (82,613) (52,551) Profit/(loss) exempted by Charitable status (1,347,824) 52,551 Net taxable income (loss to carry forward, (1,430,437) - subject to approval by IRD). Less Resident withholding tax - 18 Maori Authority Credit - 1,575 Total tax credits - 1,593 Current year taxation payable (refundable) - (1,593) Tax outstanding from prior year (18) - Taxation Payable (Refundable) Taxation (18) (1,593) (18) (1,593) The above information must be read in conjunction with the financial statements Statement of accounting policies, and auditors report. Te Rünanga o Ngäti Rärua 19

20 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March PROPERTY, PLANT AND EQUIPMENT Cost Dep'n Accum Charge Dep'n NBV Freehold land 77, ,399 Marine farms 203,418 (4,874) (71,607) 131,811 Kinross Street land 212, ,000 Wairau Bar 641,218 (1,500) (13,055) 628,163 Grove Road 64,364 (2,996) (37,505) 26,859 North Street 214,330 (3,518) (48,074) 166,256 Plant and equipment 108,498 (6,317) (89,580) 18,918 Motor vehicles 158,517 (17,325) (120,891) 37,626 Office furniture and equipment 40,144 (7,491) (26,927) 13,217 Work in progress 1,446, ,446,060 Development Expenditure 34,053 (4,368) (10,323) 23,730 Tui joint venture 79,467 (9,399) (9,399) 70,068 Diabetes educator assets 7,783 (145) (7,371) 412 Leasehold improvements 10,968 (1,490) (3,840) 7,128 3,298,219 (59,423) (438,572) 2,859,648 Cost Dep'n Accum Charge Dep'n NBV Freehold land 77, ,399 Marine farms 203,418 (6,245) (66,733) 136,686 Wairau Bar 641,218 (1,959) (11,555) 629,663 Grove Road 66,308 (2,843) (34,509) 31,799 North Street 214,331 (3,607) (44,556) 169,775 Plant and equipment 93,605 (5,451) (83,263) 10,342 Motor vehicles 170,252 (20,554) (115,038) 55,214 Office furniture and equipment 25,972 (2,005) (19,436) 6,536 Development Expenditure 32,915 (1,560) (5,955) 26,960 Diabetes educator assets 7,783 (206) (7,226) 557 Leasehold improvements 5,446 (176) (2,350) 3,096 Te Kahui o Matauranga assets 6,426 (94) (6,012) 414 1,545,073 (44,700) (396,632) 1,148, SECURITIES AND GUARANTEES There was no overdraft as at balance date. The above information must be read in conjunction with the financial statements, Statement of accounting policies, and auditors report. 20 Te Rünanga o Ngäti Rärua

21 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March TRUSTEE REMUNERATION/DIRECTOR FEE In accordance with clause 4.19 (d)(ii) of the Deed of Trust, as amended 27 August 2005, the remuneration for Trustee duties paid to individual Trustees is disclosed: Trustee Meeting Fees Expenses Reimbursed 2013 Amoroa Luke 19, ,886 J Morgan 8,143 1,833 11,199 L Luke D Willison 6, ,093 T Tapata-Stafford 5, ,329 R Piggott 5, ,708 K Stafford 4, ,342 O Hall 5, ,272 Andrew Luke 10, ,667 A Phillips 6,276 0 $72,912 $2,725 $91,496 Trustees' meeting fees are paid at rates previously agreed by Iwi and in compliance with the Trust Deed. The payments noted above are per the payroll and may be reflected in various cost centres in the financial statements. Expenses reimbursed may include mileage for a private motor vehicle, private accommodation, koha, stationery or kai. These expenses are included in the consolidated operating expenses DIRECTOR FEES Entities Te Hauora o Ngāti Rārua Limited, Te Tao Tangaroa Limited and Ngāti Rārua Asset Holding Company have Directors, they receive a retainer and / or a meeting fee for the financial year. Fees and reimbursements paid through the year: Te Hauora o Ngāti Rārua $ 27,854 $20,355 Te Tao Tangaroa Limited $15,731 $13,904 Ngāti Rārua Asset Holding Company $ Nil $ Nil These expenses are included in operating expenses. The above information must be read in conjunction with the financial statements, Statement of accounting policies, and auditors report. Te Rünanga o Ngäti Rärua 21

22 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March RELATED PARTIES Ngāti Rārua Iwi Trust is the sole shareholder of Ngāti Rārua Asset Holding Company Limited, Te Tao Tangaroa Limited, and Te Hauora O Ngāti Rārua Limited. Mr John Morgan is the manager of the company's fishing interests. He was also a trustee of the Ngāti Rārua Iwi Trust, the sole shareholder of Te Tao Tangaroa Limited. Mrs Lorraine Eade is a director of Te Tao Tangaroa Limited. Te Hauora O Ngāti Rārua Limited and Ngāti Rārua Asset Holding Company Limited. All three entities are 100% owned by the Ngāti Rārua Iwi Trust. Hemi Toia, CEO of Te Rūnanga o Ngāti Rārua is an interim director of Ngāti Rārua Asset Holding Company Limited Ms Amoroa Luke was a Trustee of Ngāti Rārua Iwi Trust until 20 March 2014 and also acts as manager of Te Hauora o Ngāti Rārua Limited. Lee Luke, son of Amoroa Luke, is a Director of Mokowhiti Limited which has provided services supporting the Treaty Settlement process. Mr Bruce Lock is a director of Te Tao Tangaroa Limited and a director of the Ngāti Rārua Asset Holding Company Limited, both entities are 100% owned by the Ngāti Rārua Iwi Trust. Mr Mark Webby group accountant to the Ngāti Rārua group was appointed as an interim director on 20th March 2014 of Te Tao Tangaroa Ltd, his appointment ceased on the 4th September LICENCE 290 LTD Ngāti Rārua Asset Holding Co Ltd owns a 25% share of Licence 290 Ltd, a marine farming business operating as a joint venture with other parties. Licence 290 Ltd's trading is included based on unaudited financial statements for the year ended 31 March The above information must be read in conjunction with the financial statements, Statement of accounting policies, and auditors report. 22 Te Rünanga o Ngäti Rärua

23 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March SHARE INVESTMENT IN OTHER COMPANIES/ENTITIES Ngāti Rārua Iwi Trust holds: - 25% share in Tui Joint Venture Partnership, the share of income and assets is recorded in the financial statements. The joint venture relates to the Tasman Bay and Golden Bay interests disclosed below % shareholding in Tasman Bay Ring Road Farming Limited. The Trust shares are carried at cost of $35,434. The latest financial statements are for the year ending 30 June The value of the investment is $30, % shareholding in Tasman Bay Ring Road Spat Catching Limited. The Trust has not recorded this investment in the accounts, as the shares are carried at cost and these shares were acquired at no cost to the Trust. The latest financial statements are for the year ending 30 June The value of the investment is $23, % shareholding in Golden Bay Ring Road Farming Limited. The Trust shares are carried at cost of $30,154. The latest financial statements are for the year ending 30 June The value of the investment is $24, % shareholding in Golden Bay Ring Road Spat Catching Limited. The Trust has not recorded this investment in the accounts, as the shares are carried at cost and these shares were acquired at no cost to the Trust. The latest financial statements are for the year ending 30 June The value of the investment is $20, % shareholding in Tiakina te Taiao Limited. The shares are carried at cost of $3,000. The latest financial statements are for the year ending 30 June The value of the investment is $9, % shareholding in Tainui Taranaki ki te Tonga Limited. The value of the investment is $nil. This company was formed for four of the Te Tau Ihu iwi to progress their claim with the Crown. There has been no cost to the Trust as the company is self-funded through contributions from CFRT. This company is now in-active. The above information must be read in conjunction with the financial statements, Statement of accounting policies, and auditors report. Te Rünanga o Ngäti Rärua 23

24 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March TREATY OF WAITANGI SETTLEMENT The deed of settlement in relation to the Treaty of Waitangi was signed on April 2013 and enacted in April Final settlement can take up to two years to complete. During the current reporting period Ngāti Rārua Settlement Trust received $3,056,329 of settlement funds from the government, and $500,000 of settlement funds that were held on behalf by Ngāti Rārua Iwi Trust. The balance of the settlement remains unquantified and no allowance has been made in the current year relating to this. To date the costs of achieving this settlement have been met by Ngāti Rārua Iwi Trust. The Ngāti Rārua Iwi Trust has submitted an account to recover these costs and this value is reflected in the financial statements. 15. TTR JOINT VENTURE The company operated a marine farm business on licences held by Ngati Rārua Iwi Trust. This business is a joint venture with other parties. The company has a one third share of the joint venture, the trading and net assets representative of the one third share are included in the financial statements. The values included on the financial statements are based on the most recent audited financial statements available, as at 31 March KAHURANGI VIRGIN WATERS LIMITED Kahurangi Virgin Waters Limited (previously Tasman Bay Waters Limited) is presently in the process of obtaining resource consents to produce bottled water. At balance date the resource consents had still not been approved. Te Tao Tangaroa Limited holds a 4.88% share of the company. 17. CONTRACTUAL SERVICES The Te Hauora 0 Ngāti Rārua Ltd holds several contracts to provide services for which funding has been received at balance date. Provision of these services may incur expenditure in future periods. 18. HAUORA TANE SERVICES The Hauora Tane contract with the Ministry of Health had accumulated unspent contract monies during 3 year period ended 31 March A portion of the under spend was utilised in financial year and the balance was used in the current financial year. The current year contract has resulted in unspent funds of $60, PROVIDER COALITION The Ministry of Health signed a contract with Te Hauora o Ngāti Rārua Ltd during the later part of the 2012 financial year, with the aim of scoping the establishment of a Maori Health Providers Coalition in Te Tau Ihu. This contract was cancelled in November 2013 with any unspent funding being repaid to the provider. 20. TE KAHUI MATAURANGA O TE TAU IHU Te Hauora o Ngāti Rārua Limited agreed to act as fund holder for a grant provided by the Ministry of Education to assist local iwi representatives develop a language strategy for Te Tau Ihu. As the contract in relation to the coalition with Te Tau Ihu was cancelled, all unspent funds were repaid to the provider in full. The above information must be read in conjunction with the financial statements, Statement of accounting policies, and auditors report. 24 Te Rünanga o Ngäti Rärua

25 Te Rūnanga o Ngāti Rārua Group Consolidated Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March MANA TANE ORA O AOTEAROA LTD Te Hauora o Ngāti Rārua Limited holds shares in Trust for Mana Tane Ora O Aotearoa Limited. The company is not treated as a subsidiary of Te Hauora o Ngāti Rārua Limited or the Ngāti Rārua Iwi Trust Group. The company is set up to advance Maori men's health outcomes in New Zealand. The shares are held by Te Hauora o Ngāti Rārua Limited on behalf of others. 22. EVENTS AFTER BALANCE DATE At a trustee meeting after balance date the Trustees passed a resolution in regards to the loan made to Te Awhina Marae. The Trustees resolved to extinguish the loan in favour of a grant. (refer to capital commitments note 1.) Since balance date the following contracts with Te Hauora O Ngāti Rārua expired and were not renewed. The value of these contracts is estimated at $451,224, annually. Disease State Management Palliative Care Hauora Tane The above information must be read in conjunction with the financial statements, Statement of accounting policies, and auditors report. Te Rünanga o Ngäti Rärua 25

26 INDEPENDENT AUDITOR S REPORT To the Beneficiaries of Te Rūnanga o Ngāti Rārua Group Report on the Financial Statements I have audited the consolidated financial statements of Te Rūnanga o Ngāti Rārua Group on pages 9 to 25, which comprise the Statement of Financial Position as at 31 March 2014, and the Statement of Financial Performance for the year then ended, and a summary of significant accounting policies and other explanatory information. Trustees Responsibility for the Financial Statements The Trustees are responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted accounting practice in New Zealand and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibilities My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing (New Zealand). Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Other than in my capacity as auditor I have no relationship with, or interests in, Te Rūnanga o Ngāti Rārua Group. 26 Te Rünanga o Ngäti Rärua

27 Basis for Qualified Opinion on Financial Position and Financial Performance The financial report includes the Group s 25% share in Licence 290 Ltd and its 25% share in Tui Joint Venture as at 31 March 2014, and its 4.9% share of Kahurangi Virgin Waters Ltd. The share of Kahurangi Virgin Waters Ltd is stated at cost. The financial statements for all of these entities are unaudited. I am therefore unable to express an opinion on those figures, or on the results for the year ended 31 March 2014, to the extent that they might be affected by the entities. The entities together comprise less than 1% of the value of Net Assets on the Statement of Financial Position. Qualified Opinion on Financial Position and Financial Performance In my opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements on pages 9 to 25 present fairly, in all material respects, the financial position of Te Rūnanga o Ngāti Rārua Group as at 31 March 2014 and its financial performance for the year then ended in accordance with generally accepted accounting practice in New Zealand. Angela Wood Chartered Accountant Blenheim 23 September 2014 Te Rünanga o Ngäti Rärua 27

28 Ngāti Rārua Settlement Trust FINANCIAL STATEMENTS 2014 Ngāti Rārua Settlement Trust Financial statements for the year ended 31 March 2014 Table of contents As at 31 March 2014 Financial statements Page Directory 1 Statement of financial position 2 Statement of movement in equity 3 Statement of financial performance 4 Statement of accounting policies 5 Notes to the financial statements 7 Audit report 9 28 Te Rünanga o Ngäti Rärua

29 Ngāti Rārua Settlement Trust Financial statements for the year ended 31 March 2014 Directory As at 31 March 2014 Date of Trust Deed 11 April 2013 Nature of Business Business Location Chartered Accountant Banker Solicitor Trustees Auditor Maori Authority Investments Unit B 15 Kinross Street Blenheim, 7201 ph (toll free) TvA Limited 52 Scott Street PO Box 1003 Blenheim, 7240 Ph Fax ANZ Bank New Zealand Limited Market Street North P O Box 43 Blenheim ph fax Wain & Naysmith 125 High Street P O Box 11 Blenheim ph fax Andrew Luke Arthur Philips (elected November 2013) Desmond Willison Olivia Hall Lee Luke (co opt March 2014) Renee Thomas (co opt March 2014) Rima Piggott Te Rehia Tapata Stafford Amoroa Luke (resigned March 2014) John Morgan Angela Wood Chartered Accountant Level 1 Youell House 1 Hutcheson Street P O Box 777 Blenheim ph fax Te Rünanga o Ngäti Rärua 29

30 NGĀTI RĀRUA SETTLEMENT TRUST Financial statements for the year ended 31 March 2014 Statement of financial position As at 31 March 2014 Note $ $ Trust Equity 3 2,125,890 Current Assets Accrued interest 46,345 Accounts receivable 500,000 GST refund due 1, ,029 Current Liabilities Accounts payable 1,474,948 Accrued expenditure 3,500 1,478,448 Working Capital Surplus (Deficit) (930,419) Non Current Assets Investments 4 3,056,309 3,056,309 Net Assets (Liabilities) 2,125,890 The financial statements have been subject to audit and should be read in conjunction with the Auditors Report. For and on behalf of the Trustees Date: 23 September 2014 as Trustee Andrew (Anaru) Luke Chair as Trustee Renee Thomas Trustee The above information must be read in conjunction with the financial statements, Statement of accounting polices, notes to the financial statements and auditor's report. 30 Te Rünanga o Ngäti Rärua

31 Ngāti Rārua Settlement Trust Financial statements for the year ended 31 March 2014 Statement of movement in equity For the Year Ended 31 March 2014 Note $ $ Trust Funds at Start of Period plus Net surplus for period 2,125,890 Trust Funds as at 31st March ,125,890 The above information must be read in conjunction with the financial statements, Statement of accounting polices, notes to the financial statements and auditor's report. Te Rünanga o Ngäti Rärua 31

32 Ngāti Rārua Settlement Trust Financial statements for the year ended 31 March 2014 Statement of financial performance For the Year Ended 31 March 2014 Note $ $ Income Interest received 46,345 Gross profit (loss) from trading 46,345 Less Expenses Expenses Accountancy deductible 1,000 Auditors remuneration 2,500 Bank charges 20 Consultancy 11,236 Treaty of Waitangi claim expenses 8 1,462,028 Total cash expenses 1,476,784 Cash Trading Profit (1,430,439) Settlement funds 7 3,556,329 Net Surplus/(Deficit) 2,125,890 The above information must be read in conjunction with the financial statements, Statement of accounting polices, notes to the financial statements and auditor's report. 32 Te Rünanga o Ngäti Rärua

33 Ngāti Rārua Settlement Trust Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Reporting entity The financial statements presented are for the entity Ngāti Rārua Settlement Trust. Ngāti Rārua Settlement Trust is a trust established by the trust deed dated 11 April 2013 as a Post Settlement Governance Entity approved by the Crown to receive and manage settlement assets for the Ngāti Rārua Group. Basis of preparation These financial statements comprise statements of: financial performance, movements in equity, financial position, accounting policies, and notes to these financial statements. These financial statements have been prepared in accordance with the trust deed and generally accepted accounting practices. They comply with approved Financial Reporting Standards (FRSs) and Statements of Accounting Practice (SSAPs) as appropriate for entities that qualify for and apply differential reporting concessions. Measurement Base The Trustees consider the most appropriate measurement base for the presentation of the financial statements is an historical cost basis, modified for the revaluation of certain assets where the trustees believe the difference has a material affect on the statements. Assets are initially recorded at the amount of cash or cash equivalents paid (or payable) or the fair value of the consideration given (or to be given), at the time of their acquisition. Liabilities are initially recorded at the amount of proceeds received (or receivable) in exchange for the obligation, or in some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business. Differential reporting In terms of the framework for differential reporting an entity is exempt from certain requirements of the financial reporting standards if it satisfies the criteria laid down in the framework; such an entity is called a qualifying entity. Ngāti Rārua Settlement Trust qualifies for differential reporting as it is not publicly accountable and is not large (as defined in the framework). All differential reporting exemptions have been adopted, except FRS19 Accounting for Goods and Services Tax, as the financial statements are prepared GST exclusive. Income tax Ngāti Rārua Settlement Trust is a Maori Authority. Ngāti Rārua Settlement Trust was approved as a Maori Authority effective from the 1st April Income tax is accounted for on the Taxes Payable Method. Income tax expense in respect of the current period is equal to the income tax payable for the same period. Income tax is calculated using the current income tax rates applicable to Maori Authorities and as determined by the Income Tax Act The above information must be read in conjunction with the financial statements, notes to the financial statements and auditor's report. Te Rünanga o Ngäti Rärua 33

34 Ngāti Rārua Settlement Trust Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Contingent assets and/or liabilities Contingent assets and/or liabilities are only recognised in the financial statements as a provision or liability if: (a) there is a present obligation (legal or constructive) as a result of a past event; (b) it is probable that an inflow or outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation. Goods and services tax The financial statements have been prepared on a GST exclusive basis, with the exception of accounts receivable and accounts payable which are stated on a GST inclusive basis. GST payable or refundable at balance date is shown in either current liabilities or current assets in the Statement of Financial Position. This is recommended by the New Zealand Institute of Chartered Accountants in FRS 19. Financial instruments Cash and cash equivalents Cash and cash equivalents comprise of cash in bank. Trade and other receivables Trade and other receivables are stated at their net realisable value. Bad debts are written off in the year that they are identified. Payables and accrued expenses Trade payables and other accounts payable are recognised when Ngāti Rārua Settlement Trust becomes obligated to make future payments resulting from the purchase of goods and services. Accrued expenses are costs incurred before balance date but no invoice has been received from either a Provider or Supplier of goods and services. Changes in accounting policies As these are the first financial statements prepared for this client, there are no comparatives for the previous year and no accounting policies previously employed which could have changed. Audit The financial statements as presented have been subject to an audit; please refer to the Auditors Report. The above information must be read in conjunction with the financial statements, notes to the financial statements and auditor's report. 34 Te Rünanga o Ngäti Rärua

35 Ngāti Rārua Settlement Trust Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March $ $ 1. CAPITAL COMMITMENTS Capital commitments as recognised at balance date. 100,000 On the 20th of March 2014 the trustees resolved that a koha of $100,000 be paid to Ngāti Waewae in April This was funded from the early settlement allocation fund held on behalf of Ngāti Rārua Settlement Trust 2. CONTINGENT LIABILITIES At balance date there are no known contingent liabilities. (2013 nil) 3. TRUST EQUITY Trust Capital Balance at end of year 2,125,890 Total Trust Equity 2,125, INVESTMENTS Westpac term deposit ,056,309 Total 3,056, MAORI AUTHORITY CREDIT ACCOUNT Maori Authority credits available at balance date 6. TAXATION Profit/(Loss) Reconciliation Profit (loss) as per income statement 2,125,890 Deduct non assessable income (3,556,329) Net profit (loss) before tax adjustments (1,430,439) Net loss to carry forward (subject to IRD approval) (1,430,439) 7. NON ASSESSABLE ITEMS Treaty of Waitangi Settlement deposit 500,000 Treaty of Waitangi Settlement as per deed 3,056,329 3,556,329 Total (3,556,329). The above information must be read in conjunction the financial statements, statement of accounting policies, and auditor's report. Te Rünanga o Ngäti Rärua 35

36 Ngāti Rārua Settlement Trust Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March $ $ 8. TREATY OF WAITANGI SETTLEMENT The deed of settlement in relation to the Treaty of Waitangi was signed on April 2013 and enacted in April Final settlement can take up to two years to complete. During the current reporting period Ngāti Rārua Settlement Trust received $3,056,329 of settlement funds from the government, and $500,000 of settlement funds that were held on behalf by Ngāti Rārua Iwi Trust. The balance of the settlement remains unquantified and no allowance has been made in the current year relating to this. To date the costs of achieving this settlement have been met by Ngāti Rārua Iwi Trust. The Ngāti Rārua Iwi Trust has submitted an account to recover these costs and this value is reflected in the financial statements. 9. TRUSTEE REMUNERATION There were no amounts paid to trustees for trustees fees for the current year as these have been met by Ngāti Rārua Iwi Trust. 10. RELATED PARTY DISCLOSURE The trustees as listed in the directory are also trustees of the Ngāti Rārua Iwi Trust. 11. EVENTS AFTER BALANCE DATE There have been no significant events since balance date that would materially affect the financial statements as reported. The above information must be read in conjunction the financial statements, statement of accounting policies, and auditor's report. 36 Te Rünanga o Ngäti Rärua

37 To the Beneficiaries of Ngāti Rārua Settlement Trust INDEPENDENT AUDITOR S REPORT Report on the Financial Statements I have audited the financial statements of Ngāti Rārua Settlement Trust on pages 30 to 36, which comprise the Statement of Financial Position as at 31 March 2014, and Statement of Financial Performance and Statement of Movement in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. Trustees Responsibility for the Financial Statements The Trustees are responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted accounting practice in New Zealand and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibilities My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing (New Zealand). Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Other than in my capacity as auditor I have no relationship with, or interests in, the Ngāti Rārua Settlement Trust. Opinion In my opinion the financial statements on pages 30 to 36 present fairly, in all material respects, the financial position of the Ngāti Rārua Settlement Trust as at 31 March 2014 and its financial performance for the year then ended in accordance with generally accepted accounting practices in New Zealand. Angela Wood Chartered Accountant Blenheim 23 September 2014 Te Rünanga o Ngäti Rärua 37

38 Ngāti Rārua Iwi Trust FINANCIAL STATEMENTS 2014 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Table of contents As at 31 March 2014 Financial Statements Page Directory 1 Statement of financial position 2 Statement of movement in equity 4 Statement of financial performance 5 Schedule of expenses 6 Farm trading statement 8 Fish stock trading statement 9 Claims and Wai 56 trading statement 10 Grants trading statement 11 Statement of accounting policies 12 Notes to the financial statements 16 Audit report Te Rünanga o Ngäti Rärua

39 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Directory As at 31 March 2014 Charities Register Number CC40227 Date of Trust Deed 13 October 1992 Nature of Business Business Location Chartered Accountant Banker Solicitor Trustees Auditor Charitable trust Unit B 15 Kinross Street Blenheim, 7201 Ph (toll free) TvA Limited 52 Scott Street PO Box 1003 Blenheim, 7240 ph fax ANZ Bank New Zealand Limited Market Street North P O Box 43 Blenheim ph fax Wain & Naysmith 125 High Street P O Box 11 Blenheim ph fax Andrew Luke Arthur Phillips (elected November 2013) Desmond Willison Olivia Hall Lee Luke (co opt March 2014) Renee Thomas (co opt March 2014) Rima Piggott Te Rehia Tapata Stafford Amoroa Luke (resigned March 2014) John Morgan Angela Wood Chartered Accountant Level 1 Youell House 1 Hutcheson Street P O Box 777 Blenheim ph fax Te Rünanga o Ngäti Rärua 39

40 NGĀTI RĀRUA IWI TRUST Financial statements for the year ended 31 March 2014 Statement of financial position As at 31 March 2014 Note $ $ Trust Equity 3 11,922,821 10,019,034 Current Assets ANZ Bank Trust 00 a/c 5,964 11,223 ANZ Bank Trust 03 a/c 179, ,960 ANZ Bank Trust 25 a/c 1,274 1,255 ANZ Bank Ratification 69,963 ANZ Bank VISA 10 Westpac Online Saver 3, ASB Bank (Tui JV) 13,523 Cash on hand Vouchers on hand 3,610 Interest receivable 29,463 29,372 Prepayments 13,690 25,636 Accounts receivable 11,918 25,949 Accounts receivable (Tui JV) 7,806 Other debtors 1,498,348 Inventories 39,298 GST refund due (Tui JV) 3,832 GST refund due 24,249 6,999 1,835, ,898 Current Liabilities ANZ Bank VISA 2,689 Accounts payable (Tui JV) 5,524 Accounts payable 229, ,080 Holiday pay accrual 17,656 34,277 Income in advance 21,583 11,813 Funds held on behalf of others 500,000 Other current liabilities and provisions 290,849 1,068, ,170 Working Capital Surplus (Deficit) 767,497 99,729 Non Current Assets Property, plant and equipment 6 2,610, ,911 Investments 4 8,545,170 10,418,625 11,155,325 11,314,535 Non Current Liabilities Term liabilities 5 1,395,230 Net Assets (Liabilities) 11,922,821 10,019,034 The financial statements have been subject to audit and should be read in conjunction with the Auditors Report. This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. 40 Te Rünanga o Ngäti Rärua

41 NGĀTI RĀRUA IWI TRUST Financial statements for the year ended 31 March 2014 Statement of financial position As at 31 March 2014 Note $ $ For and on behalf of the Trustees Date: 23 September 2014 as Trustee Andrew (Anaru) Luke Chair as Trustee Renee Thomas Trustee This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. Te Rünanga o Ngäti Rärua 41

42 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Statement of movement in equity For the Year Ended 31 March $ $ Trust Funds at Start of Period 10,019,034 10,398,690 plus Net surplus for period 1,903,787 less Net deficit for period 367,151 Koha other 12,405 Koha tangi ,656 Trust Funds as at 31st March ,922,821 10,019,034 This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. 42 Te Rünanga o Ngäti Rärua

43 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Statement of financial performance For the Year Ended 31 March 2014 Note $ $ Income Interest received 286, ,420 Dividends received 895,230 Koha received 2,266 Portfolio investment income 54,204 Miscellaneous income 30,663 Reimbursement of expenses 1,479,396 9,383 TPK governance development 27,250 2,775, ,802 Less Expenses (Refer Schedule) Operating expenses 609, ,777 Debt servicing 81 Standing charges 18,781 17,650 Administration expenses 222, ,117 Total cash expenses 851, ,543 Cash trading surplus/ (deficit) 1,923,997 (80,741) Depreciation /Amortisation expense 23,900 17,483 1,900,098 (98,224) Other Income (Costs) Farm trading surplus 2,032 1,542 Fish stock trading surplus 45,374 54,839 Claims/Wai 56 trading (deficit) (43,717) (325,308) 3,689 (268,927) Net Surplus (Deficit) 1,903,787 (367,151) This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. Te Rünanga o Ngäti Rärua 43

44 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 SCHEDULE OF EXPENSES For the Year Ended 31 March $ $ Operating Expenses Advertising 9,117 4,058 Catering & hui expenses 10,554 4,232 Iwi consultation 13,617 Consultancy fees 44,405 Electricity 2,616 2,505 Freight and cartage 306 Hire of premises, plant & equipment 87 Strategic plan/preliminary costs 9,002 Motor vehicle expenses 5,780 4,444 Repairs and maintenance General 4,018 1,579 Buildings Plant and equipment 2,883 9,289 Expense reimbursements 3,783 1,787 Security costs Resource management services 10,929 7,130 General manager 137, ,768 Trust and other meeting fees 79,983 58,085 AGM costs 17,822 Trustee hui expenses 3,335 10,111 Wages 262, , , ,777 Interest Bank current account Standing Charges Insurance 9,509 8,559 Rates 5,522 5,341 Rent 3,750 3,750 18,781 17,650 Administrative Expenses Accountancy 4,210 3,978 ACC levies Auditors remuneration 11,814 5,000 Bank charges 3, Ngāti Rārua settlement trust 1,674 Parerarua centre costs 180 Manawhenua Ki Mohua 6,000 6,000 Flowers/gifts 5,501 2,118 Tangi Koha 350 F.B.T. 3,676 General expenses 395 Legal costs 8,576 2,037 Office expenses 1,879 Stationery 5,249 6,376 Telephone 11,217 7,299 Administration expenses 49,537 6,668 Uniforms 849 1,728 This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. 44 Te Rünanga o Ngäti Rärua

45 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 SCHEDULE OF EXPENSES For the Year Ended 31 March $ $ Mauri Ora 243 Staff training and welfare 3, Subs, licences and fees 6,173 1,110 Wananga expenses 800 Employment Costs 50,031 32,829 Travel/conference expenses 31,063 23,367 Consultant property purchase 9,488 2,430 Management fee charges 5, , ,117 Depreciation / Amortisation Expense Grove Road 2,996 2,843 North Street 3,518 3,607 Plant and equipment 1,406 1,948 Motor vehicles 8,489 7,080 Office furniture and equipment 7,491 2,005 23,900 17,483 This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. Te Rünanga o Ngäti Rärua 45

46 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Farm trading account For the Year Ended 31 March $ $ Income Hay paddock lease 4,560 4,560 Pea paddock lease 4,062 1,625 8,622 6,185 Operating Expenditure Rates 4,152 1,766 4,152 1,766 Administration Expenses Maintenance Wairau Bar depreciation 1,500 2,571 2,439 2,878 Net Surplus (Deficit) 2,032 1,542 This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. 46 Te Rünanga o Ngäti Rärua

47 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Fish stock trading account For the Year Ended 31 March $ $ Income Scallop lease proceeds 9,577 11,559 Wetfish lease 514 Paua lease 28,124 46,144 Joint venture income 31,218 Ringroad Farms lease 11,592 20,250 Te Kupenga Trust 6,668 80,511 85,135 Operating Expenditure Marlborough Ringroad Farms expenses 6,577 18,512 Joint venture expenses 5,659 Lease fish quota 147 Quota levies 8,377 9,973 Telephone ,370 29,348 Nelson Tasman Bay Ring Road depreciation 4, Joint venture depreciation 9,399 Net Surplus (Deficit) 45,374 54,839 This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. Te Rünanga o Ngäti Rärua 47

48 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Claims and Wai 56 trading account For the Year Ended 31 March $ $ Income Tainui Taranaki (19,657) Expenses reimbursed 18, ,550 Crown reimbursement 150, ,050 Koha received 200 Interest on CFRT funding , ,871 Operating Expenditure Incidentals 9,555 Advisors/consultants 6,150 Kai/hui expenses Expense reimbursement Settlement 156,952 40,613 Ratification 19, ,314 Legal expenses 30, ,914 Travel/accommodation 2,925 4,637 Meeting fees 201 1, , ,512 Administration Expenses Database expenses 3,194 28,533 Telephone/fax 134 3,194 28,667 Net Surplus (Deficit) (43,717) (325,308) This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. 48 Te Rünanga o Ngäti Rärua

49 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Grants trading account For the Year Ended 31 March $ $ Ministry of Maori Development Opening balance 952 Expenses Establishment costs 952 Total Grants This statement must be read in conjunction with statement of accounting policies, notes to the financial statements, and auditor's report. Te Rünanga o Ngäti Rärua 49

50 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Reporting entity The financial statements presented here are for the entity Ngāti Rārua Iwi Trust, a trust established by the trust deed dated 13 October Basis of preparation These financial statements comprise statements of: financial position, movements in equity, financial performance, trading, accounting policies, and notes to these financial statements. These financial statements have been prepared in accordance with generally accepted accounting practices, the Financial Reporting Act 1993 and with the application of Differential Reporting exemptions. Measurement Base The Trustees' consider the most appropriate measurement base for the presentation of the financial statements is an historical cost basis, modified for the revaluation of certain assets where the trustees' believe the difference has a material affect on the statements. Assets are initially recorded at the amount of cash or cash equivalents paid (or payable) or the fair value of the consideration given (or to be given), at the time of their acquisition. Liabilities are initially recorded at the amount of proceeds received (or receivable) in exchange for the obligation, or in some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business. Differential reporting In terms of the framework for differential reporting an entity is exempt from certain requirements of the financial reporting standards if it satisfies the criteria laid down in the framework; such an entity is called a qualifying entity. Ngāti Rārua Iwi Trust qualifies for differential reporting as it is not publicly accountable and is not large (as defined in the framework). All differential reporting exemptions have been adopted, except FRS19 Accounting for Goods and Services Tax, as the financial statements are prepared GST exclusive. Property, plant and equipment Property, plant and equipment are recognised at cost less accumulated depreciation. Depreciation has been calculated using the maximum rates permitted by the Income Tax Act The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. 50 Te Rünanga o Ngäti Rärua

51 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Depreciation Depreciation is calculated on a diminishing value basis to allocate the cost of the asset, less any residual value, over its estimated useful life. Depreciation has been calculated using the maximum rates permitted by the Income Tax Act 2007 as per the following: 04.0% DV 39.6% DV Grove Road 04.0% DV 21.6% DV North Street 11.4% DV 60.0% DV Plant and equipment 11.4% DV 67.0% DV Office furniture and equipment 30.0% DV Motor vehicles 18.0% DV Tui joint venture N/A Work in progress 06.0% DV 18.0% DV & Development Expenditure 10 years SL Accounting for inventories Inventories shall be measured at the lower of cost and net realisable value. Investments Investments are carried at the lower of cost and net realisable value. Where in the Trustees' opinion there has been a permanent change in the value of the investments this has been brought to account in the current period. Events after balance date Where events after balance date are of such importance that non disclosure would affect the ability of the users of the financial report to make proper evaluations and decisions, disclosure of the following is included in the notes to the accounts: (a) the nature of the event; and (b) an estimate of its financial effect, or a statement that such an estimate cannot be made. Income tax Income tax is accounted for on the Taxes Payable Method. Income tax expense in respect of the current period is equal to the income tax payable for the same period. Income tax is calculated using the current income tax rates as determined by the Income Tax Act Ngāti Rārua Iwi Trust is a charitable entity. Ngāti Rārua Iwi Trust was reregistered with Charities Commission on the 20th May 2009, Charity number CC40227 Charitable status exempts the entity for income tax purposes under CW41 of the Income Tax Act 2007, and this exemption results in a nil provision under this policy. Contingent assets and/or liabilities Contingent assets and/or liabilities are only recognised in the financial statements as a provision or liability if: (a) there is a present obligation (legal or constructive) as a result of a past event; (b) it is probable that an inflow or outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation. The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. Te Rünanga o Ngäti Rärua 51

52 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Goods and services tax The financial statements have been prepared on a GST exclusive basis, with the exception of accounts receivable and accounts payable which are stated on a GST inclusive basis. GST payable or refundable at balance date is shown in either current liabilities or current assets in the Statement of Financial Position. This is recommended by the New Zealand Institute of Chartered Accountants in FRS 19. Ngāti Rārua Iwi Trust is grouped for GST purposes with Te Hauora O Ngāti Rārua Limited, Ngāti Rārua Asset Holding Company Limited, and Te Tao Tangaroa Limited. Related party disclosure Where there have been material transactions between the reporting entity and its related party or parties, at any time during the reporting period, disclosure of the identity of each related party involved and the nature of the relationships is made in the notes to the financial statements. Accounting for Interests in Joint Ventures and Partnerships An interest in a joint venture is recognised by including in the respective classification categories in the financial statements of the venturer entity the amount of: (a) the venturer s share in each of the individual assets employed in the joint venture; (b) liabilities incurred by the venturer in relation to the joint venture, including the venturer s share of any liabilities for which the venturer is severally liable; and (c) the venturer s share of net expenses incurred by the venturers in relation to the joint venture. The method of accounting for interests in joint ventures and partnerships used is the line by line method, using the proportionate method. Under the line by line method, referred to in this statement as the proportionate method, each participant in an arrangement accounts for its proportionate share of each asset and liability, and of the expenses and revenues. While these may be shown separately, depending upon their materiality, they may be aggregated with other similar items of the participant. Financial instruments Cash and cash equivalents Cash and cash equivalents comprise of cash in bank. Trade and other receivables Trade and other receivables are stated at their net realisable value. Bad debts are written off in the year that they are identified. Payables and accrued expenses Trade payables and other accounts payable are recognised when Ngāti Rārua Iwi Trust becomes obligated to make future payments resulting from the purchase of goods and services. Accrued expenses are costs incurred before balance date but no invoice has been received by either a Provider or Supplier of goods and services. The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. 52 Te Rünanga o Ngäti Rärua

53 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Statement of accounting policies For the year ended 31 March 2014 Changes in accounting policies In previous years payments for Koha has been deducted directly from equity. In the year ending 31 March 2014 the payments for Koha have been recognised as an Administration Expense in the Statement of Financial Performance. All other policies have been applied on bases consistent with those used in the previous year. Audit The financial statements as presented have been subject to an audit, please refer to the Auditors Report. The above information must be read in conjunction with the financial statements, notes to the financial statements and auditors report. Te Rünanga o Ngäti Rärua 53

54 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March $ $ 1. CAPITAL COMMITMENTS Capital commitments as recognised at balance date. 50,000 50,000 Trustees at a meeting on 23 March 2013 resolved to provide an interest free loan of $50, to Te Awhina Marae. The loan is for a period of five years. 2. CONTINGENT LIABILITIES At balance date there are no known contingent liabilities (2013: $0.00). 3. TRUST EQUITY Trust Capital Balance at start of year 10,315,648 10,695,304 Net Surplus (Deficit) for the year 1,903,787 (367,151) Koha other (12,405) Koha tangi (100) Balance at end of year 12,219,435 10,315,648 Trust Reserves Asset revaluation reserve (296,613) (296,613) Balance at end of year (296,613) (296,613) Total Trust Equity 11,922,821 10,019, INVESTMENTS Westpac Investment Portfolio 1,573,481 Westpac term deposit ,579,323 Westpac term deposit ,000,000 ANZ Bank term investment ,000,000 2,000,000 ANZ Bank term investment ,582,027 ANZ Bank term investment ,172,215 ANZ investment portfolio 1,531,984 ANZ term deposit Wairau Marae 10,321 Guardian Trust Cash plus Mortgage Units Te Hauora O Ngāti Rārua Ltd 43,918 43,918 Paua quota 576, ,800 Hake quota 42,923 42,923 Scallop quota 265, ,975 Marine farm licences 297 & , ,667 Shares Tasman Bay Ring Road Farming Ltd 35,434 35,434 Shares Golden Bay Ring Road Farming Ltd 30,154 30,154 Shares Tiakina te Taiao Ltd 3,000 3,000 Shares Ngāti Rārua Asset Holding Co Ltd Shares Te Hauora O Ngāti Rārua Ltd 1,000 1,000 Shares Te Tao Tangaroa Ltd 1,000 1,000 Total 8,545,170 10,418,625 This statement must be read in conjunction with the financial statements, statement of accounting policies, and auditor's report 54 Te Rünanga o Ngäti Rärua

55 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March 2014 The beneficial interest of Ngāti Rārua in fisheries resources has been progressively distributed by the Crown commencing October In November 2011 the coastline allocation was agreed and these assets distributed. The Trust's share of fisheries assets is shown in the financial statements of Ngāti Rārua Asset Holding Company Limited as required by the Crown. The quota holdings for Paua, Hake and Scallops are valued on the basis of quota shares. The value at balance date is carried from the previous year as the Trustees feel there has been no material change. (Last years figures in brackets): Scallops 2,848,472 shares.0934/share 265,975 (265,975) Paua 1,100,257 shares.5242/share 576,800 (576,800) Hake 74,320 shares.5775/share 42,923 (42,923) The Trust holds a one third share of marine farm licence numbers 297 & 460. The farms are operated via a joint venture with other parties, the Trust's involvement via Te Tao Tangaroa Limited. The Trust's share is reflected in the financial statements based on an independent valuation dated March 2012 at $256, $ $ 5. TERM LIABILITIES Te Tao Tangaroa Ltd advance 483,555 Settlement funds in advance 500,000 Advance Ngāti Rārua Asset Holding Co. 411,675 1,395,230 Total Non Current Portion 1,395,230 This statement must be read in conjunction with the financial statements, statement of accounting policies, and auditor's report. Te Rünanga o Ngäti Rärua 55

56 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March PROPERTY, PLANT AND EQUIPMENT Cost Dep'n Accum Charge Dep'n NBV Kinross Street land 212, ,000 Wairau Bar 641,218 (1,500) (13,055) 628,163 Grove Road 64,364 (2,996) (37,505) 26,859 North Street 214,330 (3,518) (48,074) 166,256 Plant and equipment 33,515 (1,406) (29,281) 4,234 Motor vehicles 34,940 (8,385) (15,373) 19,567 Office furniture and equipment 40,144 (7,491) (26,927) 13,217 Work in progress 1,446,060 1,446,060 Development Expenditure 34,053 (4,368) (10,323) 23,730 Tui joint venture 79,467 (9,399) (9,399) 70,068 2,800,092 (39,063) (189,937) 2,610,155 Cost Dep'n Accum Charge Dep'n NBV Wairau Bar 641,218 (1,959) (11,555) 629,663 Grove Road 66,308 (2,843) (34,509) 31,799 North Street 214,331 (3,607) (44,556) 169,775 Plant and equipment 30,839 (1,948) (27,875) 2,964 Motor vehicles 46,673 (7,080) (18,460) 28,213 Office furniture and equipment 25,972 (2,005) (19,436) 6,536 Development Expenditure 32,915 (1,560) (5,955) 26,960 1,058,257 (21,002) (162,346) 895, TRUSTEE REMUNERATION In accordance with clause 4.19 (d)(ii) of the Deed of Trust, as amended 27 August 2005, the remuneration for Trustee duties paid to individual Trustees is disclosed: Trustee Meeting Fees Expenses Reimbursed 2013 Amoroa Luke 19, ,886 J Morgan 8,143 1,833 11,199 L Luke D Willison 6, ,093 t Tapata Stafford 5, ,329 R Piggott 5, ,708 K Stafford 4, ,342 O Hall 5, ,272 Andrew Luke 10, ,667 A Phillips 6,276 0 $72,912 $2,725 $91,496 Trustees' meeting fees are paid at rates previously agreed by Iwi and in compliance with the Trust Deed. The payments noted above are per the payroll and may be reflected in various cost centres in the financial statements. Expenses reimbursed may include mileage for a private motor vehicle, private accommodation, koha, stationery or kai. This statement must be read in conjunction with the financial statements, statement of accounting policies, and auditor's report. 56 Te Rünanga o Ngäti Rärua

57 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March $ $ 8. TAXATION Profit/(Loss) Reconciliation Profit (loss) as per income statement 1,903,787 (367,151) Net profit (loss) before tax adjustments 1,903,787 (367,151) Profit/(loss) exempted by Charitable status (1,903,787) (367,151) Net taxable income (loss to carry forward) Taxation Payable (Refundable) 9. RELATED PARTIES Mr John Morgan was a Trustee of Ngāti Rārua Iwi Trust the shareholder of Te Tao Tangaroa Limited. Mr Morgan is manager of Te Tao Tangaroa Limited, and attends to the management of many of the company and the Trust's fisheries interests. Ms Amoroa Luke was a Trustee of Ngāti Rārua Iwi Trust until 20 March 2014 and also acts as manager of Te Hauora o Ngāti Rārua Limited. Lee Luke, son of Amoroa Luke, is a Director of Mokowhiti Limited which has provided services supporting the Treaty Settlement process. 10. SHARE INVESTMENT IN OTHER COMPANIES/ENTITIES Ngāti Rārua Iwi Trust holds: 25% share in Tui Joint Venture Partnership, the share of income and assets is recorded in the financial statements. The joint venture relates to the Tasman Bay and Golden Bay interests disclosed below. 5.6% shareholding in Tasman Bay Ring Road Farming Limited. The Trust shares are carried at cost of $35,434. The latest financial statements are for the year ending 30 June The value of the investment is $30, % shareholding in Tasman Bay Ring Road Spat Catching Limited. The Trust has not recorded this investment in the accounts, as the shares are carried at cost and these shares were acquired at no cost to the Trust. The latest financial statements are for the year ending 30 June The value of the investment is $23, % shareholding in Golden Bay Ring Road Farming Limited. The Trust shares are carried at cost of $30,154. The latest financial statements are for the year ending 30 June The value of the investment is $24, % shareholding in Golden Bay Ring Road Spat Catching Limited. The Trust has not recorded this investment in the accounts, as the shares are carried at cost and these shares were acquired at no cost to the Trust. The latest financial statements are for the year ending 30 June The value of the investment is $20,536 This statement must be read in conjunction with the financial statements, statement of accounting policies, and auditor's report. Te Rünanga o Ngäti Rärua 57

58 Ngāti Rārua Iwi Trust Financial statements for the year ended 31 March 2014 Notes to the financial statements For the Year Ended 31 March % shareholding in Tiakina te Taiao Limited. The shares are carried at cost of $3,000. The latest financial statements are for the year ending 30 June The value of the investment is $9, % shareholding in Tainui Taranaki ki te Tonga Limited. The value of the investment is $nil. This company was formed for four of the Te Tau Ihu iwi to progress their claim with the Crown. There has been no cost to the Trust as the company is self funded through contributions from CFRT. This company is now in active. 11. EVENTS AFTER BALANCE DATE At a trustee meeting after balance date the Trustees passed a resolution in regards to the loan made to Te Awhina Marae. The Trustees resolved to extinguish the loan in favour of a grant. (refer to capital commitments note 1.) This statement must be read in conjunction with the financial statements, statement of accounting policies, and auditor's report. 58 Te Rünanga o Ngäti Rärua

59 INDEPENDENT AUDITOR S REPORT To the Beneficiaries of Ngāti Rārua Iwi Trust Report on the Financial Statements I have audited the financial statements of Ngāti Rārua Iwi Trust on pages 40 to 58, which comprise the Statement of Financial Position as at 31 March 2014, and the Statement of Financial Performance and Statement of Movement in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. Trustees Responsibility for the Financial Statements The Trustees are responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted accounting practice in New Zealand and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibilities My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing (New Zealand). Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Other than in my capacity as auditor I have no relationship with, or interests in, the Ngāti Rārua Iwi Trust. Te Rünanga o Ngäti Rärua 59

60 Basis for Qualified Opinion on Financial Position and Financial Performance The financial report includes the Group s 25% share in Tui Joint Venture as at 31 March. The financial statements for the Joint Venture are unaudited. I am therefore unable to express an opinion on those figures, or on the results for the year ended 31 March 2014, to the extent that they might be affected by the entities. The Net Assets of the Joint Venture comprise less than 1% of the value of Net Assets on the Statement of Financial Position. Qualified Opinion on Financial Position and Financial Performance In my opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements on pages 40 to 58 present fairly, in all material respects, the financial position of as at 31 March 2014 and its financial performance for the year then ended in accordance with generally accepted accounting practice in New Zealand. Angela Wood Chartered Accountant Blenheim 23 September Te Rünanga o Ngäti Rärua

61 Offices of Ngāti Rārua Physical address Tokomaru House, 15 Kinross Street, Blenheim 7201 Postal Address P O Box 1026, Blenheim 7240 Phone: (03) Fax: (03) General Enquiries admin@ngatirarua.co.nz Administration & Accounts Shiree Murray shiree@ngatirarua.co.nz Chief Executive Officer Hemi Toia hemi@ngatirarua.co.nz Te Rūnanga o Ngāti Rārua Andrew (Anaru) Luke - Chair Arthur Phillips - Deputy Chair Des Willison - Trustee Lee Luke - Co-opted Trustee Olivia Hall - Trustee Renee Thomas - Co-opted Trustee Rima Piggott - Trustee te Rehia Tapata-Stafford - Trustee Te Hauora o Ngāti Rārua Ltd Dr Rod Bird - Chair Dr Lorraine Eade - Director Hinekehu McConnell - Director Amoroa Luke - General Manager molly@ngatirarua.co.nz Te Tao Tangaroa Ltd Dr Lorraine Eade - Chair Bruce Lock - Director Cynthia de Joux - Director Banks: ANZ Westpac Auditor: Angela Wood Chartered Accountant Solicitor: Alan Naysmith Wain and Naysmith John Morgan - Manager John@ngatirarua.co.nz Te Rünanga o Ngäti Rärua 61

62 62 Te Rünanga o Ngäti Rärua

63 Te Rünanga o Ngäti Rärua 63

64 Whānau gathering at Wairau Pa Church circa 1920 Wairau Pa Church