Ngāti Whakaue Tribal Lands
2016 ANRNegistUeredA OfLfic e REPORT
Ngāti Whakaue Tribal Lands Inc. Ngāti WPuhkearoka aOruueaw haTta Hroibusae l Lands Level One, 1176 Amohau Street P.O Box 12015, Rotorua.
th 55 AnnualCon taGeneralct Details Meeting 07 348 8887 www.ngatiwhakaue.iwi.nz [email protected]
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Ngāti Whakaue Tribal Lands
Registered Office
Ngāti Whakaue Tribal Lands Inc. Pukeroa Oruawhata House Level One, 1176 Amohau Street P.O Box 12015, Rotorua.
Contact Details
Phone: 07 348 8887
Website: www.ngatiwhakaue.iwi.nz
Email: [email protected]
Accountant: GHA
Auditor: Iles Casey
Solicitor: East Brewster
Bank: Rabobank
Farm Consultant: Perrin Ag
Corporate Office
General Manager Receptionist Executive Assistant Tina Ngatai Audrey Herewini Kayla Christiansen
2 Governance
Committee of Management
Jackie Aratema
Jackie has been a Director on the Committee of Management since 2003 and after 13 years of service, has retired this year. On behalf of our owners and fellow Committee members, we would like to express our gratitude and many thanks to Jackie for his commitment and dedication in the service of our people.
E te rangatira, ka nui te mihi ki a koe mō ōu mahi whakahirahira mō tō tātou Iwi o Ngāti Whakaue me tō tātou whenua.
David Thomas Tanira Kingi Geoff Rolleston NWTL Chairman WFL Chairman Director
Tamarapa Lloyd Kiriwaitingi Rei Matthew Heke Director Director Director
3 Contents
1. Agenda……………………………………………….…………..….5
2. Minutes of the AGM 14th November 2015………….6
3. Chairman’s Report……………….……………………….....17
4. From the General Manager………………………………20
5. Grants Report…………..……………………………………...24
6. Whakaue Farming Ltd………………...……………………25
7. Financial Reports………………………………………….….30
• Ngāti Whakaue Tribal Lands
• NWTL Educational Trust
8. Grants
• Grants Criteria………………………….…………….….69
• 2015/16 List of Grant Recipients……………..…70
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Contents Agenda
1. Apologies 1. Agenda……………………………………………….…………..….5
2. Call for General Business 2. Minutes of the AGM 14th November 2015………….6
3. Elections: Presentations & Voting 3. Chairman’s Report……………….……………………….....17
4. Minutes of the AGM of the 14th of November 2015 4. From the General Manager………………………………20
• Matters Arising 5. Grants Report…………..……………………………………...24
5. Receive NWTL Annual Reports & Presentations 6. Whakaue Farming Ltd………………...……………………25
• Chairman’s Report 7. Financial Reports………………………………………….….30
• General Manager’s Report • Ngāti Whakaue Tribal Lands
• Grants Report • NWTL Educational Trust
• Whakaue Farming Ltd. 8. Grants
6. Financial Report • Grants Criteria………………………….…………….….69
• Ngāti Whakaue Tribal Lands • 2015/16 List of Grant Recipients……………..…70
• NWTL Educational Trust
7. Appointment of Auditor
8. Approve Annual Grant
9. General Business
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Ngāti Whakau e Tribal Lands
MRegiisnteruedt Oeffsice
Ngāti Whakaue Tribal Lands Inc. HELD AT TE PAPAPIOuUkeRrUo a MOAruRaAwEha, tOa HHINouEsMe UTU, ROTORUA ON Level One, 1176 Amohau Street SATURDAY 14TH NOVEMBER 2015 AT 10:00 AM. P.O Box 12015, Rotorua.
Contact Details
07 348 8887
www.ngatiwhakaue.iwi.nz
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MINUTES OF THE ANNUAL GENERAL MEETING HELD AT TE PAPAIOURU MARAE, OHINEMUTU, ROTORUA ON TH SATURDAY 14 NOVEMBER 2015 AT 10:00 AM. The meeting was opened by Pihopa Kingi with a mihimihi and karakia at 10:08am David Thomas welcomed all in attendance and chaired the meeting of 156 Shareholders (refer Appendix A). Ngāti Whakaue Tribal Lands APOLOGIES
77 apologies received. (Refer Appendix B). MRegiisnteruedt Oeffsice RESOLUTION: That the apologies be received. (David Thomas /Haehaetu Barrett) Carried Ngāti Whakaue Tribal Lands Inc. ELECTION OF MEMBERS: HELD AT TE PAPAPIOuUkeRrUo a MOAruRaAwEha, tOa HHINouEsMe UTU, ROTORUA ON Presentations to meeting by Kiriwaitingi Rei, Matthew Heke and Donna Grant. Election to be held by Poll Vote: 5 owners agreed - Pihopa Kingi, Norma Sturley, Iris Level One, 1176 Amohau Street SATURDAY 14TH NOVEMBER 2015 AT 10:00 AM. Thomas, Miriama Searancke and Hamuera Mitchell P.O Box 12015, Rotorua. Sonia Cooper (Kennedy) and Wiremu Keepa appointed as Scrutineers. th [Results will be posted in the Daily Post by the 18 November 2016 which were: Donna Grant 103,974.50 Contact Details Kiriwaitingi Rei 182,298.90 Matthew Heke 166,672.80 07 348 8887 Invalid Shares 4,904.75 www.ngatiwhakaue.iwi.nz Therefore Kiriwaitingi Rei and Matthew Heke were elected to the Committee of Management.] [email protected] MINUTES: Minutes of the meeting of 8 November 2014 were presented.
MATTERS • Kauae Building Site- To be covered in the GM’s report ARISING: • Amiria McGarvey: Referred to Page 9 Deficit, queried where this came from
and what the operating revenue was at 1 July 2013. Also requested operating revenue figures for 1 July 2014 and does not want anything after 14 September 2014. Chairman explained that NWTL made a profit in 2014 that was bigger than the loss in 2013. Profits were from Operating Revenue as a result of Farming, Forestry and Rentals. Chair asked that she speak with the GM after the meeting who would make the information available. RESOLUTION: That the minutes of the meeting held on the 8TH November 2014 are confirmed. (David Thomas / Tony Wihapi) Carried
CHAIRMANS REPORT (David Thomas) Key points: • Reduced Bank Debt • Good results in the Farming Sector and improved practices have lifted income. • GM and Team have been working to increase passive income from rentals and new leases. • NWTL have been able to provide better resources to Staff and Owners
• Good returns from Forestry but there will be 6-7 years without these returns
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which the Incorporation needs to replace • Over the next 12 months, NWTL will be looking at other sources of income whilst allowing the farms to continue to increase their revenue. RESOLUTION: That the Chairman’s report be received. (David Thomas / Tony Wihapi) Carried Tony Wihapi: Commended NWTL on changing to Rabobank considering the lack of support received from BNZ and that the Manager, Brad Tatere was of Ngāti Whakaue decent. Chairman advised that Brad Tatere has now left Rabobank. Bob Armstrong: Commended the Incorporation on AGM Reports being out earlier this year, recommended they be out 2 weeks earlier than AGM. GM Committed to reports being available 8 days in advance of the next AGM, Chair said we would try for 2 weeks. GENERAL MANAGER REPORT (Tina Ngatai) Key points: • Introduced her staff and advised that their hours had increased and how valuable this had been to achieving outcomes. • 2012-2015 Strategic Plan completed and key outcomes achieved. • Improved engagement through Grants and Scholarships and improving the Farm Tour to include farming and the whenua. • Working toward other sources of income as well as ensuring all current leases are at Market Value. • Kauae Site: Site is externally complete for Council Compliance. Interior yet to be completed. Advised that we have a key tenant and close to completing a formal lease agreement. • Other opportunities: Working toward a lease with Wingspan who Fly and Breed Raptors. Shearers Quarters - Future use being investigated such as a “Book a Bach” type arrangement. Were successful in receiving MBIE Funding which pays for a commercial advisor to investigate ventures and opportunities. Ernst & Young has been contracted for this. • Collaboration with Pukeroa Oruawhata Trust and Ngāti Whakaue Asset Trust in early stages to look at an Iwi Housing Model to increase home ownership for Ngāti Whakaue. • Te Ture Whenua Maori Act: NWTL made a Submission as the Incorporation has concerns around what the implications of any amendments will have financially and to our ability to operate commercially. • 2016 Farm Tour: Date set for 12 March 2016 (weather dependent). • 55th AGM to be Celebrated next year. • 2015-2018 Strategic Plan: presented the plan. RESOLUTION: That the General Manager’s report be adopted (Tina Ngatai / Iris Hayward) Carried
Bob Armstrong: Commended GM on her Report and commended the Board for allowing the increase in staff. He noted his concern about the number of ventures that have been done in the past and wanted to ensure this Committee
8 concentrated on its core business as there have been substantial loses in the past. GRANTS REPORT (Matthew Heke) Key Points: Health, Marae, Tangi and discretionary grants made. Encouraged the owners to apply. RESOLUTION: That the Grants report be adopted. (Matthew Heke/ Tony Wihapi) Carried. RESOLUTION: That $50,000 be allocated for the 2015-2016 toward Grants. (Matthew Heke/ Tony Wihapi) Carried.
Tony Wihapi asked how much was allocated for the Tikanga Fund and the Whakairo at Kauae Cemetery. Matthew advised that $5000.00 has been allocated for the Tikanga Fund over the last 2 years and GM explained that $5000.00 had also been allocated for the Whakairo at Kauae Cemetery as per the Carvers quote. SCHOLARSHIPS REPORT (Donna Grant) Donna Grant presented the Scholarships Report. Also gave the history behind the funds in the Ngāti Whakaue Educational Trust along with informing owners that next year will be the last year for these funds to be utilised. RESOLUTION: That the Scholarships report be adopted. (Donna Grant/ Josephine Tai) Carried. WHAKAUE FARMING LTD (Tanira Kingi) Tanira Kingi presented the Whakaue Farming Report. • Acknowledged Bob Armstrong’s statements regarding ‘sticking to farming and forestry’. Explained that since restructuring, the farms have turned around and are performing in the top 20 percent nationally. Locally NWTL own the largest pastoral farm in Te Arawa and the Rotorua Catchment. Also said that being the biggest and good at farming isn’t enough anymore which means NWTL have to be prepared to change in order to be better positioned for the challenges ahead. • Challenges for WFL: Climate Change-discussed the impacts of the 2012 Drought and the El Nino Weather Pattern emerging which means dryer summers and more wet/cold springs and winters. Farming under the Nitrates Incentives Scheme is also going to have an impact, but WFL are well positioned moving forward. • 3 things have characterised the past year for WFL. 1. Innovation is essential and WFL are focussed on the farms being prepared for long-term sustainability. 2. WFL cannot run a farming or pastoral based business that aims to make produce at a higher value than everyone else. Therefore, WFL are trying to differentiate what is produced by producing a product that can get a higher margin. Partnerships/ Alliances are being utilised to facilitate this. 3. To position WFL to take advantage of the $40 million dollar Nitrate Incentives Programme. Tanira explained that he is on the advisory group for the Regional Council which are putting in place the rules and is also a
9 Director on the Incentives Board which will be buying the Nitrates. Therefore, due to these conflicts of interest Tanira is not involved in the negotiations for the Incorporation. Tamarapa Lloyd is the NWTL Negotiator for the Nitrate Sales Agreement. • Covered the Lamb and Beef policies that have meant a better return over the prior year. Noted that this has included Dairy Grazing and that this has boosted revenue also. • Strategic Targets have been set for the farms and we are targeting $500 per hectare which will be a good result for a Sheep and Cattle station. WFL have made massive increases in performance to date but still want farm management to do better in lifting the performance in order to survive in a very uncertain future with limitations on how the Incorporation can farm. • Profitability: Have had good increases over the past few years a lot of which can be attributed to good control of costs and producing a product that gives a profit margin compared to competitors. • Truffles: Decision this year to cut back managed area of truffle to 30% which is 3 Hectares. Discovered that there is no live truffle inoculation through tests undertaken. This has been the case for other truffle growers in the region. For this region it appears that it takes. The yield of truffles could take more like 13-15 years’ time rather than the 6-7 years originally expected. WFL are looking at other horticultural options for Wharenui. RESOLUTION: That the WFL report be adopted. (Tanira Kingi / Tony Wihapi) Carried
Arama Pirika: Complimented NWTL about good decisions made over the past 10 years to do with the control of nitrates and phosphates. But WFL are still farmers and this contributes to the poisons in our water ways and lakes. Farming is still going to impact our waters irrespective. RLC have asked to discharge their waste at Ngāpuna and many of us disagree with that. Arama asked what the Incorporations view on this was. Tanira said that RLC are currently in breach of their consent and they were discharging 50 tonnes when their consent is for 30 tonnes. We do not support discharge into the lack and as a principle would prefer council look at other systems.
Jason Nairn: Tautoko Aramas korero regarding being environmental citizens. Said that the phosphorus from farming and aluminium sulphate is getting into our kaimoana. Referred to Ngāti Rangiwewehi and Rangiteaorere who have rejected the aluminium sulphate being put in the lakes. Would like to know why Ngāti Whakaue are supporting the council on this trial. Tanira responded that it is not correct that Ngāti Whakaue supported the council on this introduction as it was a decision made solely by the council. There have been conversations over the past two years on boards outside of NWTL which have showed mixed opinions on the matter. Taniras personal view is that it should be phased out.
10 Tony Wihapi: The WFL Report was very long and it seems that some of the information provided is more about operational matters rather than matters relevant for seeking support from the owners at this meeting. asked that the report be reduced. He commended WFL on reducing truffle area. Acknowledged that the owners have been aware of the ventures that NWTL have done in the past, that it has long been understood that diversification is important as farming is volatile. Asked if the three farms were competing against each other in order to lift performance of the Farm Managers and Tanira confirmed that they were with Individual Performance Targets.
Pihopa Kingi: sought clarity on the forest harvesting and for confirmation that we were replanting. Tanira confirmed this was the case. NITRATE REPORT (Tamarapa Lloyd) The Nitrates is an issue that has featured at the AGM for the last 3-4 years. Things have progressed to the point where NWTL are now in a position to discuss potentially selling down the nitrates. Farm Nutrient Plans-Measuring of Nitrates and Phosphates by Council is almost 98% done. Once complete, it will show what is in excess to sell and from there the formal negotiations can occur. Believes NWTL are well placed to get the best price for the nitrates as the reductions are able to occur straight away, with the farms operating under the proposed threshold already. New farming practices have decreased nitrate levels and as our farms are so close to the lake, the changes made will have tangible benefits. Explained that WFL will be able to continue farming under the proposed nitrate level should the sell down occur and the environment-kaitiakitanga are values that are important to the Incorporation. FINANCIAL REPORT (Glenn Hawkins) Key points: • Qualified audit opinion as we haven’t re-valued all the land due to cost. Common amongst Maori land trusts and incorporations to take this stance so is not a concern for the owners. • Operating Revenue down $252,128.00 • Profit/Loss: Fully relying on Farming and Forestry for income which equates to around 90% of income last year. Other income is from Livestock Proceeds, Wool and leases/rentals. Timber proceeds are stopping which is a challenge for the committee in the coming years. • Operating Expenses decreased by $141,276.00 with the biggest expenditure being for Forestry which was due to harvesting and re-planting ($1.6 Million) • Another good overall operating surplus for the past two years which has been around $1 million dollars each year. • Equity: Have had an increase of equity by 2.5%. • Statement of Financial Position: $42.3 million made up in property as well as land available for selling and livestock. $565,000.00 in liabilities for short term debt over the next year, $5.2 million in long term debt. Pleased with Rabobank interest rates and service on other debt which is now below $4
11 million dollars.
Tony Wihapi: would like to see the value of Gee Road and Brent’s Road Properties valued separately in the notes to the accounts. The net surplus shows our reliance on the forestry harvest and if it wasn’t for this we would be in a loss situation. Forestry is a one in 25 year event so I don’t see that as a good result. Therefore there needs to be a strategy in place to improve the returns from the last 10-15 years. Tanira responded by showing that farming profitability has doubled in the last two years with returns going from $200 per hectare and now expected to reach $500-$700 per hectare which would put us in the top 5% of the country.
Glenn then presented the Ngāti Whakaue Tribal Lands Education Trust accounts. RESOLUTION: That the annual accounts for the year ended 30th June 2015 be approved. ( David Thomas / Bob Armstrong ) Carried RESOLUTION: That the Ngāti Whakaue Tribal Lands Education Trust Accounts be accepted. (David Thomas /Bob Armstrong) Carried APPOINTMENT OF AUDITOR & SHARE VALUER Glenn asked we appoint for the 2015/16 year. RESOLUTION: That Iles Casey Chartered Accountants be appointed auditors for the ensuing year. ( Bill Kingi /Haehaetu Barret ) Carried GENERAL BUSINESS:
1. Kauae Poumaharatanga (Tekoteko): GM provided slides to the meeting on the restoration plans for the Tekoteko at Kauae Cemetery which were prepared by Rakeiuekaha Kingi. 2. Miriama Morehu: Not happy about the state of Kauae Cemetery, weed killers effects and the rising price of plots. Donna Grant advised that the Cemetery is not maintained by Ngāti Whakaue Tribal Lands but informed the meeting regarding the Councils plans to upgrade. Iris Hayward said that it is looking poor but it is also the responsibility of the families to maintain their respective plots. 3. Irlene Miriama Searancke: Transfer of Shares: Concerned about the lengthy time she had to wait to get her shares completed. The GM advised the process and apologised for the delay and confirmed that she would provide a written apology for the delay. 4. Pihopa Kingi queried what the current value of shares and informed the meeting about a Healing our Spirits Conference to be held in the coming weeks in Hamilton. Glenn had previously advised that the total value of shares was $36.5m The Chairman thanked the Committee for the work done throughout the year and thanked the Shareholders for their on-going support and attendance at the meeting. With no further business the Chairman declared the meeting closed at 12:45pm and Pihopa Kingi did the closing karakia.
12 Apologies List
Ngāti Whakaue Tribal Lands 2015 AGM – Total = 77
Wharerakau Māori Education Pep Carruthers Kenneth Ngakuku Whititera Trust Ahomiro
Thomas Alfred Titipou Smale David Herewini Sam Ngaroherua Williams
Polly Herewini May McRoberts Gloris Forest Iri Te Kowhai
Hiko Forest Alexander(Alec) Ripeka Rakato Bonnie Amohau Wilson
Gordon Leathers John Leathers Mark Armstrong Damian Morrison
John Armstrong David Armstrong Philip Armstrong Aroha Haruru
Maria Marama Irihapeti Wineera Gayle Wineera Teriona Pirimona
Thomas Wineera Tony Kopae Thomas Iharaira Doris Walker Sinnott
Millie Heke Glen Wineera Wena Kopae Hereaka Meager
Richard Vercoe Terry Tapsell Jnr. Althea Vercoe Gladys Martin
Janis Graham Lyn Vercoe Lewis Vercoe Merania Pakinga
Martha Majorey Ramon Winiata Christine Tierney Airini Heretaunga
Bryce Morrisson David Winiata Linda Watts Anne Scott
Guy Steele Ruben Morrison Eva Morehu Thomas Reid
Roma Roach Andres Heke Jason Heke Marlene Simon
Kim Taylor Petera Kingi Rawiri Kingi Georgina Timoti
Tupara Morrison Daniel Morrison Pita Anaru Paul Pirimona
Bill Haronga Sam Rakato Eldan Morrison Pita Anaru Williams
13 Attendance Register
Ngāti Whakaue Tribal Lands 2015 AGM – Total = 156
Rowena Rika Marlena Ihaia Richie Morrison Margaret Edwards Petrina Mapapalangi Maria Ihaia/Moengaroa Bev Waru Kuia Morrison Miriama Morehu Selwyn Bennett Tarahina Te Kowhai W/T Irlene Miriama Searancke Tilly Hirst Eddie Vercoe Miriama Risbridge Matt Heke Mary Hodge John D.T Marino Irihapeti Galvin Rose Lane Olivia Taylor Andrew Te Amo Te Toko Pateriki Kingi Ngarangimihi Maika Hamuera Mitchell Tireni Douglas Teresa Smith Ataraita Heretaunga Dianne Reid Haehaetu Barret Honor Te Koi: Vercoe W/T Melissa Riki: McGarvey W/T Lorraine Rika Maria Wiritana W/T Kaeterina Daniels (nee Maniapoto) Deborah Toa Waiariki Thomas Waiariki Elaine Thurl Thomas: Thomas W/T Te Hope Hakaraia Edith Hunuhunu: Irihapeti Matemoana Manahi Pene W/T Osalla May Third Hall W/T Ella Taylor Minnie King Pihopa Kingi Rene Morrison Del Rei Parehuia Gots James Theodore: Theodore Tana McGarvey Merania Kingi W/T Anita Arnold: Winiata W/T Eva Morehu Jonathan Renata Ron Leathers Iris Thomas: Hayward W/T Laurie Morrison Wipori Whareaorere T.A Ahomiro Mary Anne Herbert Leah Haruru Josephine Scott Rawiri Bhana Peter Moke George RRakoczy Penelope Liza Crapp Joy Flood Barry Flood Mary Kusabs Jason Nairn Tony Wihapi Sylvia Gamble Agnes Morrison Wiremu Kingi Geoff Rice: Retimana W/T Norma Sturley Maraea Theodore Hariata Theodore Eru Tautuku Jim Tautuku Betty Tautuku Patricia Loffley Joseph Williams Leslie Wineera Julie Day Wiremu Waaka Robert Armstrong Irihapeti Theodore Jonathan Mason Kimi Matthews Sally Moana Tawhai John Vercoe Arama Pirika Marryanne Kutia: Morehu Wiitoria Kake Catherine M.K Faulkner W/T Kiri Fraser Levi Leathers Lorraine Power Paulena Jackson Margie Elers Victor Crapp
14 Dan Fraser Te Arakohuru Kingi: Maui Kingi W/T Piwiki Heke Sonia Cooper Winipene Morrison Raymond Flood Howard Morrison Bunny Ormsby Tere Rei Maria Kaio: Rata Herewaka Roberta Rickard Terry Morrison W/T David Thomas Jackie Aratema Tina Ngatai Donna Grant D.Crosbie: Crosbie W/T Kiriwaitingi Rei Glenn Hawkins Tamarapa Lloyd Tanira Kingi Eric Perenara Hodge: Rangie Michelle Tuhoro (Rogers): Te Whetu Tarewa Rota: Haimona Rota Harry W/T Rogers W/T & Ngaropo W/T Maxine Rennie: Maxine Leslie Ateria McMahon: Hinetaro Vervies Punohu:VP Rennie W/T & Tarahina Te Marino Meihana McMahon W/T McCausland W/T Kowhai W/T Te Kapua Hohepa Watere: Benjamin Tait: Takaputea oku Kathy Buchanan Bates: Tukuahua W/T Marama W/T Hinetaro Meihana-Marino Ana Mohi: Merekorama Lorraine Parker: Merekorama Geoff Rolleston: Pukorero & Morrison Trust Morrison Trust Peata Roretana W/T Marion Te Kaawa: Ruth Kirikowhai Mikaere: Perenara & Patihana Takuira-Mita: Ruahuihui Macpherson W/T Kahoki Mikaere W/T Patihana Hira Takuira-Mita W/T Cynthia Ngahuiatapu Smith: Wiremu Keepa: Aneta Wikiriwhi Veronica Butterworth: Crosbie W/T Keepa W/T Miriama Carrington W/T Hamuera Hodge: Rangi Harry James Graham: George Graham Katherine E Haffmans: Hodge W/T W/T Rangi Rata Herewaka W/T Kath Henderson: Kathleen Diane Hapa Haronga: Te Amohau Raewyn Paul: Rangi Rata Marara Rangi Henderson Haronga W/T Herewaka W/T W/T Michael Rolleston: Pukorero Peter Robb: Edith Maraea Robb W/T Maryanne Williams: Peata Rolleston W/T Tangatahaerewa W/T Linda M. Bartlett: Arihia Ngairo Heretaunga: Te Konui II W/T Whakataerangi Mason: Te McKeatie W/T Konui II W/T Judy Tapsell: Tereanuku- Kahira McRae: Benjamin Morrison Jessie McMahon: Hinetaro Mereana Tapsell W/T W/T Meihana McMahon Runa Morrison-Huitena: 3 Illegible Names Sindu (Janos) Morrison W/T
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Ngāti Whakaue Tribal Lands
AnnuReagislte rRed eOffpice orts
Ngāti Whakaue Tribal Lands Inc. 2P0u1k5e ro–a Or2u0aw16h ataY Heoausre Level One, 1176 Amohau Street
P.O Box 12015, Rotorua.
Contact Details 07 348 8887 www.ngatiwhakaue.iwi.nz [email protected]
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Chairman’s Report David Thomas
E ngā karangamaha o Ngāti Whakaue, Tēnā tātou katoa.
Ngāti Whakaue Tribal Lands I wish you a warm welcome to this, the 55th AGM of Ngāti Whakaue Tribal Lands Incorporation.
Registered Office We have had another challenging year as we continue our journey to enhance the Incorporation's ability to be a positive contributor to the Ngāti Whakaue Tribal Lands Inc. well-being of its shareholders and Ngāti Whakaue at large. I am pleased Pukeroa Oruawhata House to report that our financial performance this year, although down on Level One, 1176 Amohau Street 2015, was positive. We have made good progress on some fronts and P.O Box 12015, Rotorua. still see other opportunities for progress. Contact Details Whakaue farming had another solid year and continues to
07 348 8887 build on the changes made over the past two years. www.ngatiwhakaue.iwi.nz Management is well on the way, with further planned [email protected] improvements, to ensure we remain in the upper echelon of performers in the region.
Forestry activity was restricted to replanting in areas that were
harvested in late 2015. Not surprisingly we wish to remain in
this sector and are currently considering the level of
investment we could make over the next 3-7 years. I am
pleased to say that, after a lengthy process to upgrade the
property at Kōkōreke, we have completed a leasing
arrangement with Manaaki Ora Trust to allow them to
undertake their activities on that site towards the end of the
2016 calendar year.
Regrettably, the process of accessing funding through the Lake Rotorua Incentives Board for excess
Nitrates, has proven to be more difficult than we expected both from a value and a timing perspective.
Although this has impacted on our cash flow we did, and continue to, investigate other opportunities for
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income generation.
My thanks to Tina and her team, Kayla and Audrey, for their contribution to improving our performance
and providing a better service to our shareholders. I must also acknowledge the efforts and
commitment of our farming team who have once again done a great job. We continue to receive very
good service and support from GHA and Associates in the financial and reporting area. Perrin Ag make a
valuable contribution to the performance of the farms, and Rabobank have proven to be a very helpful
partner in the funding of the Incorporation.
Kiriwaitingi joined the Committee of Management this year and my thanks go to her and to her fellow
members for their active and committed participation in the Incorporation's affairs. Jackie Aratema has
decided to retire from the Committee this year and I would like to acknowledge and thank him for his 13
years of service. In conclusion, I would like to thank you our shareholders for your support and look
forward to seeing you at our AGM.
Kia ora mai anō,
David Thomas
NWTL Chairman
Investigating new opportunities at the Berry Conference in Nelson
18 2016 Farm Tour
19 From the General Manager
TINA NGATAI
It is with pleasure that I provide the General Managers report and inform you of the activities we have been involved in and the direction over the next year and beyond. Growth of the revenue together with reduction of debt have been a key focus of the Incorporation along with working towards sustainable benefits for the owners.
In investigating how to improve our commercial returns and new landuse activities that we should turn our attention to, we commissioned a report through Ernest & Young Tahi Ltd, which was 75% funded by MBIE (Ministry of Business, Innovation and Employment) to investigate different business sectors and where we should concentrate our efforts. Several area’s including Commercial & Industrial development, the Tourism Industry and a Residential / Retirement village development, were explored. It will come as no surprise to you all that Tourism has come out as the sector that is most profitable, sustainable and considered to be optimal landuse. The Committee of Management has therefore identified that the land from OGO to Kōkōreke beside Kauae Urupā will be earmarked in the future for tourism activities.
As announced last year, we have done long-term arrangements with Wingspan who will begin work in the coming year on moving their current buildings to a site along Paradise Valley Road. We have also been working with another party, Kiwi Rider Ltd to take a ½ hectare site near OGO for a tethered Helium balloon which sits 150m in the air – they are currently working on resource consent and other compliance issues. These ventures together provide income of around $15,000 per hectare which is far superior to any activity we have on the land at present.
We have also through Whakaue Farming Ltd, investigated a number of Agribusiness ventures which can bring in a better return than Sheep and Cattle farming. Over the last four years our partnerships with Awhina Management Ltd – a collective of Trusts and Incorporations from Tuwharetoa, Ngati Kahungungu, Ngati Maniapoto and others including other Te Arawa entities provided us with a secure Lamb contract giving us a base price with premium prices for preferred weight and timing and a partnership with Firstlight Foods which introduced Wagyu-cross cattle on our land which has seen the performance of the farms lift and go from strength to strength. The ventures we have explored are partly driven by our need to reduce our environmental footprint to those activities that
20 leach less Nitrogen into our waterways. To that end, ventures such as Free Range Eggs, Berries, Manuka Plantation, Bees and Dairy Sheep have been investigated. We have been fortunate to secure funding from the Low Nitrogen Land Use Fund to enable some of these feasibility projects to be further explored. The challenge here is to create a better commercial return than our current activity from Sheep and Cattle farming and reduce our environmental footprint.
With those factors in mind we have also been investigating more Forestry on marginal land area’s and looking at by- products from this activity, hence the investigation into Manuka. We tendered for a new Forestry consultant who was better aligned to our strategy and have appointed Shane Perrett of Prime Forestry Management to be our advisor in this area. Creation of a sustainable forestry harvesting plan together with high end products would secure our income for the future and we are currently investigating how to achieve this. Our carbon units (NZUs) have risen in value in 2016 and are likely to stay high now that overseas Units are no longer valid in this country. An opportunity exists to sell those pre-1990 units to fund other activities with increased equity provided by our post-1990 units which are part of the Emissions Trading Scheme developed by the Government.
We have also been spending some time developing our partnerships with other entities, two of which are described above, but also within Ngāti Whakaue so that we can support each other’s activities and not compete and duplicate the work of others. This has enabled us to identify the gaps and find a place that NWTL might target its social activities. Whilst our Health and Tangihanga grants are well received, it is in the area of Housing and Employment that we see a need. We have had very early talks with others on a Housing strategy which is focused on Home ownership, as opposed to Social housing. Those activities ‘on farm’ that we are investigating which look at commercial return and the environment impact also has a third priority, which is socio-cultural based, specifically housing and employment.
The emphasis on Commercial returns, debt reduction, farming / land diversity and Partnerships is all done to create benefits for the current and future beneficiaries of Ngāti Whakaue. I tend to repeat this every year but it holds true that our whakatauki – Mana Whenua : Mana Tāngata along with our core values Kaitiakitanga, Manaakitanga, Whakapono and Kotahitanga lie at the heart of all we do.
Having regular contact with the Iwi is important to our office, as it keeps us grounded and to that end we investigated moving the Share Register from GHA, Accountants and running this ourselves. We have been encouraging owners to bring their enquiries to us for the last three years but as we didn’t control the Share Register this was not always effective. Following an investigation into options and also to continue to drive reduced costs, we have found a very robust Computer system, named GD Pro which will enable us to maintain the register and update successions and other transactions. Audit reports are able to be generated to ensure that every entry is traceable. This
21 will mean considerable savings for us as, with our ever growing ownership list, comes greater administration costs and much of this has been alleviated by using our existing staff to do this. We were fortunate that through our Committee of Management member Kiriwaitingi Rei, we were able to see this program demonstrated at the Maori Investment Ltd office who have the same program, they are using it to help them trace owners, create effective methods to deal shareholders who have very small shares and make their AGMs more efficient. Whilst it will take time to reach that level of detail in the short-term we should be able to deal with a number of anomalies in the Share Register such as, deceased owners, incorrect spelling, owners with multiple names and tracing unclaimed money to reduce this.
As the Chairman has already said the Kōkōreke site was blessed as part of the bi-annual farm tour and we also took the opportunity to hold the barbeque at that site (which was fortunate given the weather that day). Manaaki Ora Trust has taken the lease and this will become a Residential Centre for Drug and Alcohol rehabilitation in our community. We still have two houses which we need to lease, one of which was offered to Toi Iwi Ltd, Maori Carving business owned by Rakei Kingi, following identification that the studio he leases from us is unable to be repaired. That building needs to be demolished and so Toi Iwi’s lease will end at 30 June 2017. Unfortunately the alternative site did not suit and I wish to acknowledge Rakei for being a very good tenant for many years, he took over those buildings that could not be sold, after the Mountain Action Ltd tourism venture was wound up early last decade.
This year has also been one of significant change of some key legal parameters we work within and with more to come. The Health and Safety Act was reviewed which has placed more emphasis on workplace safety and for farmers this is significant. All people visiting the farms have to comply with this and we have negotiated with the Waikite Hunting Club access through Tihi-o-tonga farm which ensures both parties are protected. The review of Te Ture Whenua Maori Act continues to be reviewed and we are still awaiting the final outcome of this. BOPRC (Bay of Plenty Regional Council) are amending the Rules that affect Nitrogen loss and this will have significant impacts on what we can do in the future.
The Incorporation has met its 55th year still intact and moving forward. As part of the MBA I recently completed I did a review of the first 50 years of the Incorporation entitled Ngā Piki me ngā Heke and the overriding impression I received was that every decade contained highs and lows. However over-arching all of this has been a Committee of Management that told their owners the facts and at least three generation of owners, who after all the questions were asked and answered, gave there unswerving support.
He pai te tirohanga ki ngā mahara mo ngā raa pahemo engari ka puta te maaramatanga i runga i te titiro whakamua. It’s good to reflect on the past but wisdom comes from being prepared for opportunities for the future. Nga Mihi, Tina Ngatai General Manager
22 NWTL Strategic Plan 2015 – 2018
MANA WHENUA: MANA TĀNGATA Our Mission: Our Values:
To safeguard and improve corpus Value Actions lands, grow our assets, build capacity We will nurture our Kaitiaki and increase the wellbeing of Ngāti natural resources and (Sustainability) Whakaue. people for a prosperous
future
Aroha We will give our best to
(Excellence) benefit the organisation and our people
We will take personal Whakapono responsibility for our (Integrity) actions and will be open,
Our Vision: honest and ethical in our
behaviour
To be a significant contributor to the Kotahitanga We will collaborate and
wellbeing and advancement of Ngāti support collective (Partnership) endeavour for the Whakaue lands and people. benefit of the tribe
STRATEGIC FOCUS AND INITIATIVES
COMMERCIAL SHAREHOLDERS received benefits that are To increase the returns from our business meaningful and sustainable activities by: We will develop benefits for our owners that • Developing a debt to asset ratio of 30% < include: • Achieving a 5% or better net return on 1. Opportunities to work on our land cash-flow each year 2. Benefits for the Marae and culturally • Exploring land use options activities 3. Capacity building FARMING AND LANDUSE DIVERSITY 4. Support for Housing and employment 5. Cultural Performance Indicators To ensure that: 1. Farming returns meet our commercial and reputational aspirations 2. Land-use diversity is continued in order to COLLABORATION AND PARTNERSHIPS improve our passive income streams 1. To act with other N’Whakaue entities to: i. Develop business opportunities that support and enhance the tribe REPUTATION ii. Meet the needs of tribal members 1. We will understand and promote the legacy (individually and collectively) that the Incorporation has in the community 2. To act with other economic entities to 2. We will ensure we are recognised nationally diversify our commercial portfolio for best practice and innovation in our land- use activities
23 Grants Report
2015/2016 Year
Tēnā tātou katoa,
On behalf of the Grants Committee, it is my pleasure to report on the 2015/16 Year Grants. Our committee includes the General Manager, Kiriwaitingi Rei and our independent member, Josie Scott.
Up to 30 June 2016 we were able to approve 27 Health, 15 Tangihanga, 5 Marae and 6 Discretionary Grants.
The Discretionary Grants pool again this year has been influential in our ability to contribute to a number of important kaupapa for our Iwi. Some of these include the: • Whakaue Kapa Haka: $5000 was given to the roopu for the Te Arawa Regional Competition, • Lawn-mower at the cost of $6,299.00 for the Mokoia Island Trust: there have been a number of working bees taking place on the motu, so the lawn mower has been a big help to our whānau, • $1000 toward Te Arawa Legacies of the Womens Health League Project and the, • Whakaue Whakanuia grant of $10,000
The five select Marae - Te Papaiouru, Tunohopu, Owhata, Hurungaterangi and Whakaue ki Maketu Marae again received the Annual Grant of $2000 and we were also able to give $3000 toward the facilities upgrade at Te Kuirau Marae.
As advised at last year’s AGM, the Tikanga Fund was set up in order to support our koeke, paepae and Iwi to attend the numerous tangihanga and events that essentially uphold the mana of Ngāti Whakaue. The delegates responsible for these funds are providing reconciliations of any expenditure and we are happy to continue making this available.
In closing, it has been a privilege to support our owners and wider Iwi through the utilisation of these Grants and I would like to make the following Resolution which includes an increase to cover the annual grant made to Whakaue Whakanuia each year:
Resolution: That $60,000 be allocated for Grants for 2015/16 Year Matthew Heke Chairman of the Grants Committee
24 Whakaue Farming Ltd.
WFL Chairman’s Report
Kia ora tātou Ngāti Whakaue,
It is my pleasure to present the 2016 Whakaue Farming Ltd report on behalf of the Board of Directors.
The year to June 30 2016 ended up being better than the Board had anticipated and originally budgeted for. Income from the farming operations was higher and we had tighter cost control resulting in lower expenses to produce an end of year profit of $269,680 (compared to -$57,826 for 2015). This is an excellent result and demonstrates the ability of our directors and management team to drive better efficiencies from our farm operations.
A key factor that has been a significant influence on the Board and NWTL CoM for over two years has been the sale of excess nitrogen from our farms to the Bay of Plenty Regional Council (BoPRC), Lake Rotorua Incentives Board (LRIB). We have arrived at a pivotal point in our negotiations and a verbal update will be given at the AGM. It is important to reiterate however, that WFL as the largest single farming entity in the Lake Rotorua catchment and one of the better performing farm operations is in a good position to “weigh up” all alternatives before deciding on a particular course of action.
The Board is exploring land use diversification options that will increase the revenue streams for WFL as well as reducing our nutrient leaching footprint. These are strategic decisions that need to be made with the best information possible. Unfortunately, many “high value, low footprint” options do not have a lot of information that is easily accessible. The Board however, has secured additional funding from the BoPRC Low Nitrate Land Use Fund for the 2017 year that will help provide the data and industry information needed to support future investment decisions.
25 Summary of WFL performance for the past year
Livestock Revenue
Lamb numbers sold this year were 10,725 compared to 12,375 in 2015. Total number of sheep sold this year resulted in $975,000 gross return compared to $937,000 in 2015. Beef cattle numbers sold in 2016 were 1,101 in comparison to 938 in 2015. Weights and market prices are outlined in Table 1 below.
Table 1: WFL Key Performance Indicators 2016 Key Indicator Industry 2016 2015 2014 2013 (average) benchmark
Lambs cwt1 18kg 17.5kg 17.8kg 17.8kg 16.6kg
Steers cwt 285kg 287kg 281kg 266kg 275kg
Bulls cwt 275kg 299kg 281kg 283kg 275kg
Lambing % 135% 129% 119% 137% 127%
Ca lving % 90% N/A N/A N/A N/A EFS2/SU3 $40 $46 $29 $9 ($26)
4 EFS/Ha $400 $392 $287 $219 ($216)
1 cwt = carcass weight; 2 EFS = economic farm surplus; 3 SU = stock unit; 4 Ha = hectare
Total Gross Profit (before Operating Expenses) from our livestock operations $2.643m (compared to $2.435m in 2015). This produced an Operating Surplus of $114,163 (compared to a loss of -$43k in 2015). Livestock valuation adjustments of $155k produced a Profit of $269,680.
Individual Farm Performance
Wharenui: Higher beef revenues from the spot beef price and a lack of dairy service bulls in the market produced excellent beef revenues for Wharenui. The Farm Manager, Ben Parsons, and Farm Advisor, Lee Matheson, made the decision to retain dairy grazers and this generated an additional $65,990 of revenue and improved pasture quality over the entire farm. Lamb prices in 2016 continued to fall but this drop in price was offset by the team achieving the weight and yield targets under the Awhina/Alliance supply arrangement. Ewe lambing performance has lifted significantly to 128% but increasing this to over 130% remains a priority. Farm expenses were reduced through deferring the
26 lucerne development and double cropping and along with some weed control costs. Major expenses that could not be deferred further on Wharenui included replacing the woolshed roof and upgrading the water system.
Tihi-o-Tonga: The performance of Tihi-o-Tonga has increased under the management of Steve Hewson, who joined WFL in April last year. Cattle numbers have increased lifting both revenue and improving pasture quality. Heifer weights have also improved, which has justified an increase in the grazing rate charged by WFL. Lambing percentage on Tihi-o-Tonga has improved to 125%, but like Wharenui, this figure is below the potential of the farm and the Board will be working with the management team to ensure continuous improvement in 2017. A higher casual labour expense reflects the relatively low permanent labour allocation for a finishing property the size of Tihi-o-Tonga. Labour utilisation across all of the farms is an important area that the Board is focusing on this season.
Ngongotahā: Improvements in beef and wool revenues partially offset the low lamb prices, and while the Ngongotahā lambing result of 130% was higher than our other two farms, it is a drop from previous years for the Farm Manager, Clive Carrington. Reproductive rates are an important driver of farm profitability and so a major focus for the Board will be to work with management team to increase the lambing percentage across the three farms. Clive took a well-earned holiday this year and the WFL Assistant Manager, John Vercoe stepped in as farm manager of the Ngongotahā station for several weeks in Clive’s absence. John demonstrated excellent management skills and judgement during this time and his performance endorses the Board’s decision to establish the Assistant Manager’s position 2- years ago as part of our farm manager succession plan.
Updates on Partnerships
Red Meat Profit Partnership (Awhina and Alliance Foods): Membership of the RMPP has provided very useful information on the relative performance of WFL against the Awhina collective farms that are in the project including Atihau Whanganui Incorporation, Tarawera Station (Te Awahohonu Trust), Opepe Trust and Pukepoto Trust. There are two Te Arawa Primary Sector Group members - Tautara Matawhaura Trust and WFL. A benchmarking exercise was carried out and showed the relative performance of these farms against each other and against regional data. The benchmarking revealed that our productivity and expenses were on-par with other entities of a similar size but it also revealed areas where we need to focus on to improve our efficiency.
Awhina sheep meat supply agreement (Alliance): WFL continues to supply our lamb exclusively to the Alliance Group as part of our commitment to the Awhina Collective and its strategy of developing an exclusive provenance or brand in-market for sheep meat. While lamb prices were lower than last year the relationship is still proving worthwhile, with our supply agreement delivering a premium in lamb prices relative to the market in excess of 5%.
27 Firstlight Foods and Wagyu: Our partnership with Firstlight Foods is proving beneficial with higher margins received for our product in comparison to the industry beef schedule. However, price margins are based on the quality of the beef and this is underpinned by the marbling score (percentage of marbled fat in the meat). Our Wagyu x dairy breed heifers averaged a marble score of 5.4, compared to the typical marble score of 5 for this breed mix. Our Angus x Wagyu steers at Ngongotahā averaged 4.4, again higher than the “normal” score of 4 for this breed mix, but our largely Wagyu x dairy steers Wharenui only averaged 4.4 compared to target of 5. The management team are looking into the systems changes that need to be made to consistently average >MBS 5.0 that will attract the superior premiums associated with the higher grade marbled beef. This can be a challenge on the steeper country with lower quality pasture species. Despite this, we averaged $5.53/kg for our Wagyu steers, versus $5.41/kg for our traditional steers and for our trade heifers, the Wagyu cattle netted $5.57/kg, versus $5.10/kg. We expect this gap to widen in the Wagyu cattle’s favour in the 2016/17 year
Table 2: Price per kg for Wagyu vs non-wagyu cattle at WFL 2015/16
Wagyu Traditional Variance Steer 5.53 5.42 2% Heifer 5.58 5.10 9%
The partnership will also provide greater price stability or less price volatility in comparison to farmers that increase supply to traditional meat exporters in response to high spot market prices. WFL is one of the largest Wagyu producers for Firstlight Foods and we are very pleased with our investment in the product line and we look forward to a growing partnership.
WFL Outlook
In the past 12 months the BoPRC Plan 10 Rule Change has been notified and WFL included a submission along with approximately 90 landowners and farmers in the Lake Rotorua catchment. The BoPRC Rule change will mean that all farms over 40 hectares in size will need to submit a nutrient management plan (NMP) to obtain a consent to continue farming. Dairy farms in the catchment need to reduce their nitrogen discharges by an average of 35% and drystock farms need to reduce by 17%. Each farm will receive a nitrogen discharge allowance (NDA) and they need to show in their NMP, entailing how they will achieve the NDA by 2032. NWTLs decision to exit the dairy industry in 2007 and WFLs management systems in the past 9 years have resulted in WFL having excess nitrogen to maintain our current farming systems and achieve our 2032 NDA. WFL is currently in negotiations to sell this excess nitrogen to the Lake Rotorua Incentives Board (LRIB) because it had a dairy farm on Wharenui at the time that farms were benchmarked, during the 2001-2004 period.
The Plan 10 Rule Change is an opportunity for WFL to leverage its scale as the largest rural land owner in the catchment with three sheep and beef farms, 450 hectares of pine forestry, over 250 hectares in
28 native bush and riparian plantings and a history of dairy farming and horticulture. WFL is currently reviewing options for diversification including the sale of excess nitrogen. The details of the nitrogen sale and diversification options are confidential, but a verbal update will be given at the AGM.
In closing, I would like to thank the WFL farm management team – Clive Carrington, Ben Parsons, Steve Hewson and John Vercoe along with our farm staff, Kane Fredrickson and Paul King. I’d also like to thank Lee Matheson and his team from PerrinAg Ltd for their supervision of the farms, Glenn Hawkins and his team at GHA for accountancy services and the NWTL management team of Tina Ngatai, Kayla Christiansen and Audrey Herewini for their support of the board over the past year. Finally, I would like to extend my appreciation to my fellow directors David Thomas and Geoff Rolleston for their commitment and dedication to WFL over the past year.
Tanira Kingi
Chair, WFL
Board of Directors: Geoff Rolleston, David Thomas, Tanira Kingi & Lee Matheson (PerrinAg).
29
Ngāti Whakaue Tribal Lands
FinancReigiasterle dR Ofeficep orts
Ngāti Whakaue Tribal Lands Inc. 2P0u1k5e ro–a Or2ua0w16h ataY Heoausre Level One, 1176 Amohau Street
P.O Box 12015, Rotorua.
Contact Details 07 348 8887 www.ngatiwhakaue.iwi.nz [email protected]
30
Financial trends 2016
2016 Income Income by year
$6,384,026 $6,168,398
Ngāti Whakaue Tribal Lands $5,106,583 Livestock $4,023,199 $3,617,829 Registered Office Other farm Leases
Other Ngāti Whakaue Tribal Lands Inc. Pukeroa Oruawhata House
Level One, 1176 Amohau Street 2012 2013 2014 2015 2016 P.O Box 12015, Rotorua.
2016 Expenses Expenses by year Contact Details
07 348 8887 $5,359,692 $5,466,564 $5,486,201 $5,475,704 Farm www.ngatiwhakaue.iwi.nz Admin $4,090,535 [email protected] Interest Depreciation
Other
2012 2013 2014 2015 2016
Net profit after revaluations Bank loan
$6,000,000 $6,000,000
$213,355 $4,500,000 $3,963,895 $4,088,052 (includes other movements of $280,691)
No forestry income in 2016
2012 2013 2014 2015 2016
31
Financial report 2016
New reporting standards
In 2016, Ngāti Whakaue Tribal Lands Incorporation transitioned to new financial reporting standards which became compulsory this year. As the Incorporation now prepares its financial standards using IFRS RDR, the financial reports presented in this report look quite different to previous years. To ensure consistency, 2015 comparative numbers as reported last year have also been restated to match the new requirements. Some items are now presented in a different section of the annual financial statements. There is also a mandatory requirement to include a Statement of Cash Flows, which from now on will form part of these financial statements. Although the layout of the financial statements looks different, every effort has been made to ensure that high quality information is presented to you, whilst meeting compliance requirements.
Income
For the 12 months ended 30 June 2016, the Incorporation has generated total income of $4,023,199 from its core activities being farming and commercial leases. There was no income from forestry during the past year. $2,901,617 (72%) of income was generated from livestock sales, followed by $702,988 (17%) from other farm activities such as wool sales and $4,023,199 grazing. $282,557 was obtained from commercial leases and $47,629 from residential rents. $88,408 from investment returns and other TOTAL INCOME income make up the remaining 11% of total income.
Income is down significantly by $2,145,199 (35%) compared to 2015 which is due to no income being received from forest harvesting in 2016. However, other income streams continued to grow compared to last year, adding $279,934 to the bottom line.
Expenses
Total expenses for the year were $4,090,535 which is $1,385,169 or 25% less than last year. This reduction is mainly due to a $1.5m decrease in forestry related costs. Farm expenses remained almost unchanged compared to 2015 with the exception of livestock costs which were $61,607 lower than last year.
$38,685 more was spent on rental properties, though this was inflated by the significant investment into the Kōkōreke site, which will provide solid returns into the future.
Interest expenses continued to decline in line with the decline in $4,090,535 interest rates. Total interest paid on the term loans was $260,404 TOTAL EXPENSES which was $15,682 less than last year. Administration expenses were $120,026 (25%) higher than last year. However, $68,000 of this increase was offset by funding received from MBIE, to cover the consulting costs for project assessments.
32
Profit STATEMENT OF FINANCIAL POSITION The Net Profit for the year after allowing for an increase in livestock values and payment of 2016 2015 grants was $213,355 (2015 - $865,201). This is Current assets 592,185 579,967 29,323,906 29,365,374 a 75% drop with the absence of forestry PP&E 6,759,939 6,720,000 income being the major contributing factor. Investment property Inventory 1,210,000 1,210,000 A new income classification called Other Biological assets 4,535,098 4,217,633 Comprehensive Income (OCI) was introduced Other assets 435,137 277,817 this year in line with the requirements of new 42,856,265 42,370,791 financial reporting standards. As a result, an increase in value of the New Zealand Units Current liabilities 633,769 565,095 (carbon credits) was included. Therefore, total Bank loan 4,088,052 3,963,895 comprehensive income for 2016 was $157,320 Unclaimed dividends 981,873 992,737 ($48,480 in 2015), which further enhanced the Other liabilities 205,190 272,360 overall result. 5,908,884 5,794,087
Balance Sheet EQUITY $36,947,382 $36,576,705
The Incorporation’s current assets consist of bank funds and receivables. Non-current assets include freehold land, plant and equipment, investment properties, as well as TOTAL ASSETS forestry holdings and livestock. Based on the UP requirements of IFRS RDR, the Incorporation for the first time recognised the NZ Units as $485,474 part of Intangible assets. As at 30 June 2016, the Incorporation held 13,800 pre-1990 NZUs with a total value of $247,020 ($89,700 in 2015). An increase in the value of the NZUs, livestock STATEMENT OF CHANGES IN EQUITY and forest contributed to an overall increase in total assets of $485,474. The Incorporation 2016 2015 also holds 41,080 post-1989 NZUs which have Opening equity 36,576,705 35,663,023 a current market value of $735,332. Net profit/(loss) 213,355 865,201 OCI 157,320 48,480 Current liabilities include accounts payable, CLOSING EQUITY $36,947,382 $36,576,705 income in advance, annual leave payable, GST due, bank overdraft and finance leases due within the next 12 months. Non-current liabilities include long term borrowings, finance leases and unclaimed dividends.
Despite a significant reduction in income, the OWNERS’ EQUITY Incorporation maintained prudent control UP over its spending. This resulted in a small increase in the loan balance during the year of $370,675 $124,657, which maintained the total bank debt at just over $4m by year end. 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Notes to the Consolidated Financial Statements Ngati Whakaue Tribal Lands Incorporated and Subsidiaries For the year ended 30 June 2016
14 Property, plant and equipment
Corpus land & Buildings & Motor Plant & Office Total improvements building fit-out vehicles equipment equipment
Cost of valuation $ $ $ $$$
Balance at 1 Jul 2014 28,543,538 1,308,783 401,598 578,424 26,362 30,858,705
Balance at 30 Jun 2015 28,543,538 1,274,889 629,839 599,403 30,560 31,078,229 Additions - 5,296 74,056 15,028 3,336 97,716 Disposals - - (23,926) (3,604) - (27,530) Balance at 30 Jun 2016 28,543,538 1,280,185 679,969 610,827 33,896 31,148,415
Corpus land & Buildings & Motor vehicles Plant & Office Total improvements building fit-out equipment equipment
Accumulated depreciation $ $ $ $$$
Balance at 1 Jul 2014 264,697 522,567 262,156 389,773 20,596 1,459,789
Balance at 30 Jun 2015 274,782 812,802 197,773 409,260 18,236 1,712,853 Depreciation expense 9,564 27,555 67,316 21,159 6,677 132,270 Eliminated on disposal - - (19,424) (1,192) - (20,616) Balance at 30 Jun 2016 284,346 840,357 245,665 429,227 24,913 1,824,507
Net book amount at 30 Jun 2015 28,268,756 462,087 432,066 190,143 12,324 29,365,374
Net book amount at 30 Jun 2016 28,259,192 439,828 434,304 181,600 8,983 29,323,906
2016 2015
$$ Depreciation of property, plant and equipment 132,270 93,762
Corpus land and improvements have been revalued to the latest Rating Valuations prepared by Landmass Technology Ltd. The latest valuation is dated 1 July 2014.
The corpus land is classified as Maori freehold land as per Te Ture Whenua Maori Act 1993 and as such there is a restriction on the sale or disposal of this corpus land.
Leased assets Motor vehicles includes the the following amounts where the Company is a lessee under a finance lease (refer to Note 23 for further detail). 2016 2015
Leasehold equipment $$ At cost 313,700 313,700 Accumulated depreciation (51,391) (12,194) Net book amount 262,309 301,506
49 16 of 24 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
Ngāti Whakau e Tribal Lands
RGegisrtearend tOfsfi ce Ngāti Whakaue Tribal Lands Inc. Puk e2r0o15a O–r u2a0w16h aYtae aHro use Level One, 1176 Amohau Street
P.O Box 12015, Rotorua.
Contact Details
07 348 8887
www.ngatiwhakaue.iwi.nz
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Grants Criteria & Information
What Grants are available?
• Tangi Grants: $300 available on application for a deceased Shareholder within the first 6 months Ngāti Whakau e Tribal Lands of the Tangi occurring. • Health Grants: $300 available for any personal health related matter upon production of receipts. Registered Office • Discretionary Grants: These Grants are for requests that specifically align to a Ngāti Whakaue Grants Kaupapa and enables NWTL to lift its profile in the community. Please note: The Incorporation does not give Grants for Birthdays, Sports or Education Ngāti Whakaue Tribal Lands Inc. . Puk e2r0o15a O–r u2a0w16h aYtae aHro use Who can apply? Level One, 1176 Amohau Street • Any Shareholder of Ngāti Whakaue Tribal Lands Inc. may make one application a year only. P.O Box 12015, Rotorua. • Only one application per Whānau trust will be accepted each year. The application can be made by an individual however the application must be signed by at least 2 of the whānau trustees and the applicant must provide the evidence of who the trustees are. (If the applicant is one of the Contact Details trustees then two others must certify).
07 348 8887 What will I need to apply? www.ngatiwhakaue.iwi.nz [email protected] • You must complete the application form attached. Please note: All Incorrectly completed or Incomplete forms will be rejected & NWTL will not be seeking further information. • Applicants must include Identification, Bank Account Details and Receipts with this application in order for it to be processed and approved. • You must declare on the application form any other organisations you have sought funding from. • If you are applying through a Whānau Trust, you must provide a copy of your Court Order.
How are the applications processed?
• The Grants Committee meets two monthly to discuss applications– their recommendations are then put to the Committee of Management for approval. Staff can give you an indication as to when they meet. There will be no urgent requests and the decision is final.
• You will be advised of the outcome by letter or email and no correspondence will be entered into once the decision has been made. • Any approved grants will be paid to the applicant’s bank account – we will not operate a cheque account. Please note we only reimburse costs already paid for in the case of Health Grants. • Any recipients of large grants (more than $2000) will be requested to report to the Incorporation on the use of those funds. • A list of recipients will be published each year in the Annual report – all recipients who apply do so on the basis that this will occur.
69
List of Grant Recipients
2015 – 2016 Year
Robert Corbett Sandra Yates Womens Health League Ōhinemutu Laurence Ehau Kororia Groves Kiwi Māori Affairs Reunion
Peter Glasgow Owhata Marae Whakaue Kapahaka
Ropata Scott Tunohopu Marae Tikanga Fund
Elaine Macfarlane Tupuhi Clarke-Rewi Mokoia Island Trust
Georgina Whittle Marlene Smith Melissa Temple
Katerina Daniels Glen Marshall Christopher Campbell
Peter Dinsdale Rene Morrison Betty Herewini
William Kingi Marlene Smith Ronald Morehu
Wenarata Kopae Te Wakaunua Eden-Phillips Monika Marriner
Awa Baker Carol Te Kowhai Tui Rolleston
Ngarangimihi Maika Josephine Scott Harry Rota
Shelly Timihou Irene Pene Nga Puni Walters
Eva Waretini Paa Yates Te Papaiouru Marae
70 2015 AGM
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Ngāti Whakaue Tribal Lands
Registered Office
Ngāti Whakaue Tribal Lands Inc. Pukeroa Oruawhata House Level One, 1176 Amohau Street P.O Box 12015, Rotorua.
Contact Details
07 348 8887
www.ngatiwhakaue.iwi.nz
72