f' - Return of Private Foundation OMB No 1545-0052 Form 990-PF or Section 4947(a)(1) Trust Treated as Private Foundation III- Do not enter Social Security numbers on this form as it may be made public. 2013 Department the Treasury Internal Revenue Service 1111- In formatio n about Form 990-PF and its se parate instructions is at www.irs. Jov/fom For calendar year 2013 or tax year beginning , 2013, and ending , 20 Name of foundation A Employer identification number THE AOTEAROA FOUNDATION 20-1464742 Number and street (or P 0 box number if mail is not delivered to street address ) Room/suite B Telephone number (see instructions) (212) 984 -5700 C/O DEBORAH A. RUTIGLIANO, 101 PARK AVENUE City or town, state or province, country, and ZIP or foreign postal code q C If exemption application is ► pending , check here NEW YORK, NY 10178
G Check all that apply Initial return Initial return of a former public charity El D 1 Foreign organ iz ations , check here • ► Final return Amended return 2. Foreign organiz ations meeting the 85% test , check here and attach Address chan ge Name chang e computation ...... ► H Check type of organization X Section 501(c)( 3 ) exempt private foundation E If private foundation status was terminated Section 4947 ( a)( 1 ) nonexem pt charitable trust Other taxable p rivate foundation under section 507(b)(1)(A), check here . ► I Fair market value of all assets at J Accountin g method- - -X- -Cash------Accrual------F the foundat ion50 is in a60.mec t ermination
end of year (from Part ll, col. (c), line 1:1 Other (specify) - under section 507(b)(1)(B), check h ere • ► 40,339,680. 16) ► $ (Part 1, column (d) must be on cash basis) (d) Disbursements lj^ Analysis of Revenue and Expenses (The (a) Revenue and (b) Net investment (c) Adjusted net for charitable total of amounts in columns (b), (c), and (d) expenses per may not necessarily equal the amounts in income income purposes books column (a) (see instructions) ( cash basis onl y)
1 Contributions its, grants , etc, received (attach schedule) if the foundation is not required to 2 Check Do- attach Sch B ...... 3 Interest on savings and temporary cash investments 4 Dividends and interest from securities • • S a Gross rents ...... b Net rental income or (loss) e 6a Net gain or (loss) from sale of assets not on line 10 b Gross sales puce for all assets on line 6a w 7 Capital gain net income (from Part IV, line 2) 8 Net short-term capital gain ...... 9 Income modifications • • • • • • • • 10 a Gross sales less returns and allowances b Less Cost of goods sold c Gross profit or (loss) (attach schedule) . 11 Other income (attach schedule) ATCH • ]. . • 1,076, 516. 1, 076,516. 12 Total. Add lines 1 throu g h 11 1, 076, 516. 1, 076, 516. 13 Compensation of officers , directors, trustees, etc 0 14 Other employee salaries and wages . . . 90, 2 91 . 90, 2 91 In 15 Pension plans, employee benefits • • • • 20, 534. 20,534 CD 14,039. 14,039 06 16a Legal fees (attach schedule) ATCH 2 lql- X 13,500. e 750., 6, 750 0 b Accounting fees (attach schedule)AT•C(-I 1 c Other professional fees (attach schedule) . TO 17 Interest ...... -! o ^l C3 Z IV J V 18 Taxes (attach schedule) ( see mstmcaons)ATCH , 55, 19 9 . E 19 Depreciation (attach schedule) and depletion. r^ h y C:) Q 20 Occupancy ...... 21 Travel, conferences, and meetings , 8,715. 8 , 715 LL 1° 22 Printing and publications .. . , • . . . z 14,190. 14, 190 Z 23 Other expenses (attach schedule) A.TCH .5. 24 Total operating and administrative expenses. CD a Add lines 13 through 23 ...... 216, 413. 6, 750. 154,519 25 Contributions, gifts, grants paid .. . . . 2, 200, 787 - 2,250,787 26 Total expenses and disbursements Add lines 24 and 25 2,417,200. 6, 750. 2, 3 5 5 , 3 0 6 27 Subtract line 26 from line 12 a Excess of revenue over expenses and disbursements -1,340,684. b Net Investment income ( if negative, enter -0-) 1, 069, 766. c Adj usted net Income ( if negative , enter -0-) . . .tsA For Paperwork Reduction Act Notice , see Instructions. Form 990-PF(2013) 3E1410 1000 1762CE 3846 A56703 9^3(9 t L Form 990-PF (2013) THE AOTEAROA FOUNDATION 20-1464742 Page 2 Attached schedules and amounts in the Beginning of year End of year Balance Sheets description column should be for end-of-year amounts only (See instructions) (a) Book Value (b) Book Value (c) Fair Market Value 1 Cash - non-interest- bearing ...... 146, 081. 258, 183. 258, 183 2 Savings and temporary cash investments ...... , receivable 3 Accounts ► ------Less allowance for doubtful accounts ► 4 Pledges receivable ► Less allowance for doubtful accounts i 5 Grants receivable ...... 6 Receivables due from officers, directors, trustees, and other disqualified persons (attach schedule) (see instructions) . • ,
7 Other notes and loans receivable (attach schedule) ► _ _ _ _ Less allowance for doubtful accounts ► ______m 8 Inventories for sale or use ...... U) 9 Prepaid expenses and deferred charges ...... 10 a Investments - U S and state government obligations ( attach schedule), b Investments - corporate stock (attach schedule) ...... c Investments - corporate bonds (attach schedule) , ...... 11 Investments - land, buildings, ► and equipment basis ______Less accumulated depreciation ► (a tt ach sch ed u le) ------12 Investments - mortgage loans ...... 13 Investments - other(attach schedule) , , , • • ATCH 6 29, 936, 318. 28, 462, 834. 40, 081, 497. 14 Land, buildings, and ► equipment basis ------______Less accumulated depreciation ► (att ach schedule) ------15 Other assets(describe ► ______) 16 Total assets (to be completed by all filers - see the instructions Also, see page 1, item 1) , 30, 082, 399. 28, 721, 017. 40, 339, 680. 17 Accounts payable and accrued expenses , , , , , , , , , , , 18 Grants payable ,,,,,,,,,,,,,,,,,,,,,,, m 19 Deferred revenue ...... 20 Loans from officers, directors, trustees , and other disqualified persons 21 Mortgages and other notes payable (attach schedule) . . . . . ATCH_ 7 --__ ) 53,508. 32,810. 22 Other liabilities (describe ► ______-
23 Total liabilities (add lines 17 through 22) . . 53,508. 32,810.
Foundations that follow SFAS 117, check here. ► and complete lines 24 through 26 and lines 30 and 31. m 24 Unrestricted ...... 25 Temporarily restricted ...... 26 Permanently restricted ...... 3 Foundations that do not follow SFAS 117, . . . ► t check here and complete lines 27 through 31. 0 27 Capital stock, trust principal, or current funds 30,028,891. 28,688,207. y 28 Paid -in or capital surplus, or land, bldg , and equipment fund , , , Q 29 Retained earnings , accumulated income , endowment , or other funds m 30 Total net assets or fund balances (see instructions) . .. . 30,028,891. 28,688,207. Z 31 Total liabilities and net assets/fund balances (see instructions) ...... 30, 082, 399. 28, 721, 017 . Anal sis of Chan ges in Net Assets or Fund Balances 1 Total net assets or fund balances at beginning of year - Part II, column (a), line 30 (must agree with end-of-year figure reported on prior year's return) , , , • • , , • , , , , , , , , • , • , , , , , , , 1 30, 028, 891 2 Enter amount from Part I, line 27a 2 -1, 340, 684 3 Other increases not included in line 2 (itemize) 3 ►------4 Add lines 1, 2, and3 4 28,688,207 5 Decreases not included in line 2 (itemize) __ 5 ► 5_- 6 Total net assets or fund balances at end of year Ilne 4 minus line Part II, column b_line 30 6 28, 688, 207 Form 990-PF (2013)
SSA 3E1420 1 000 1762CE 3846 A56703 0 • THE AOTEAROA FOUNDATION 20-1464742 Form 990-PF(2013) Page 3 Capital Gains and Losses for Tax on Investment Income (a) List and describe the kind(s) of property sold (e g real estate, acqu^d (c) Date (d) acquired Date sold Purchase brick warehouse, or common stock, 200 shs MLC Co) P - yr ) (mo , day, yr) 2-story D - Donatron (mo, , day, 1a b c d e Depreciation allowed (g) Cost or other basis (h) Gain or (loss) (e) Gross sales price (f) (or allowable) plus expense of sale (e) plus (f) minus (g) a b c d e Com p lete onl y for assets showin g g ain in column ( h ) and owned by the foundation on 12/31/69 (I) Gains (Col (h) gain minus Adjusted basis (k) Excess of col (1) col (k), less than -0-) or (1) F M V as of 12/31/69 0) as of 12/31 /69 over col 0), if any Lossesbut not(from col (h)) a b c d e If gain, also enter in Part I, line 7 2 Capital gain net income or (net capital loss) { If (loss), enter -0- in Part I, line 7 } 2 3 Net short-term capital gain or (loss) as defined in sections 1222(5) and (6) If gain, also enter in Part I, line 8, column (c) (see instructions) If (loss), enter -0- in 1 Part I, line 8 J 3 ORM Qualification Under Section 4940 (e) for Reduced Tax on Net Investment Income (For optional use by domestic private foundations subject to the section 4940(a) tax on net investment income
If section 4940(d)(2) applies, leave this part blank
Was the foundation liable for the section 4942 tax on the distributable amount of any year in the base period? q Yes q No If "Yes," the foundation does not qualify under section 4940(e) Do not complete this pa rt
1 Enter the a pp ro p riate amount in eacn column Tor eacn year see the instructions Detore maKln any entries. (a) (b) (c) (d) Base period years Distribution ratio Adjusted qualifying distributions Net value of nonchantable-use assets Calendar year ( or tax year beginning in) (col ( b) divided by col (c)) 2012 1,690,362. 36,825,559. 0.045902 2011 3,526,575. 38,745,315. 0.091019 2010 766,693. 37,066,412. 0.020684 2009 25. 37,739,256. 0.000001 2008 6,025. 22,749. 0.264847
2 Total of line 1 , column (d) 2 0.422453 3 Average distribution ratio for the 5-year base period - divide the total on line 2 by 5, or by the number of years the foundation has been in existence if less than 5 years ...... 3 0.084491
4 Enter the net value of noncharitable -use assets for 2013 from Part X, line 5 4 38, 743,111.
5 Multiply line 4 by line 3 ...... 5 3, 273, 444 .
6 Enter 1% of net investment income ( 1% of Part I , line 27b ) ...... 6 10,698.
7 Add lines 5 and 6 7 3, 284, 142.
8 Enter qualifying distributions from Part XII, line 4 8 2, 355, 306. If line 8 is eaual to or greater than line 7 . check the box In Part VI . line 1 b . and complete t hat D art usina a 1% tax rate See the Part VI Instructions 3EA Form 990-PF (2013) 3E 1430 1 000 1762CE 3846 A56703 9 CJ
Form 990-PF (2013) THE AOTEAROA FOUNDATION 20-146474 2 Page4 IMM Excise Tax Based on Investment Income (Section 4940 (a), 4940(b), 4940(e), or 4948 - see instructions)
1 a Exempt operating foundations described in section 4940 (d)(2), check here ► and enter "N/A" on line 1 . , . Date of ruling or determination letter ------(attach copy of letter if necessary - see instructions) b Domestic foundations that meet the section 4940(e) requirements in Part V, check 1 21,395. q here ► and enter 1 % of Part I, line 27b c All other domestic foundations enter 2% of line 27b Exempt foreign organizations enter 4% of Part I, line 12, col (b) 2 Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only Others enter - 0-) . . . 2 3 Add lines 1 and 2 . 3 21,395. 4 Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only Others enter -0-) , , , 4 0 5 21, 395. 5 Tax based on investment income . Subtract line 4 from line 3 If zero or less, enter -0...... 6 Credits/Payments a 2013 estimated tax payments and 2012 overpayment credited to 2013 , , , , 6a 131,000. b Exempt foreign organizations - tax withheld at source , , , , , , , , , . . . 6b c Tax paid with application for extension of time to file (Form 8868) , , , , , , , 6c 40, 000. d Backup withholding erroneously withheld ...... 6d 000. 7 Total credits and payments Add lines 6a through 6d ...... 7 171, 8 Enter any penalty for underpayment of estimated tax Check here q if Form 2220 is attached ...... 8 9 9 Tax due If the total of lines 5 and 8 is more than line 7, enter amount owed ...... ► 149, 605. 10 Overpayment . If line 7 is more than the total of lines 5 and 8, enter the amount overpaid , , , , , , , ► 10 11 Enter the amount of line 10 to be Credited to 2014 estimated tax ► 14 9, 605 . Refunded ► 11 130107-3- Statements Reg arding Activities 1a During the tax year, did the foundation attempt to influence any national, state, or local legislation or did it participate Yes No or intervene in any political campaign? ...... 1a X b Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see Instructions for the definition)? ...... lb X If the answer is "Yes" to 1a or 1b, attach a detailed description of the activities and copies of any materials published or distributed by the foundation in connection with the activities c Did the foundation file Form 1120 -POL for this year? , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 1c X d Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year managers (1) On the foundation ► $ (2) On foundation ► $ e Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed on
foundation managers ► $ 2 Has the foundation engaged in any activities that have not previously been reported to the IRS? , , , , , , , , , , , , , , , 2 X If "Yes, " attach a detailed description of the activities 3 Has the foundation made any changes, not previously reported to the IRS, in its governing instrument, articles of incorporation, or bylaws , or other similar instruments? If "Yes," attach a conformed copy of the changes ...... 3 X 4 a Did the foundation have unrelated business gross income of $1,000 or more during the year? ...... 4a X b If "Yes , " has it filed a tax return on Form 990-T for this year? ...... 4b N/ 5 Was there a liquidation , termination , dissolution , or substantial contraction during the year?, , , , , , , , , , , , , , , , , , 5 X If "Yes,"attach the statement required by General Instruction T 6 Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either • By language in the governing instrument, or • By state legislation that effectively amends the governing instrument so that no mandatory directions that conflict with the state law remain in the governing instrument? ...... 6 X 7 Did the foundation have at least $5 , 000 in assets at any time during the year? If 'Yes,' complete Part 11, col (c), and Part XV 7 X 8a Enter the states to which the foundation reports or with which it is registered (see instructions) ► NY, ------b If the answer is "Yes" to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney General (or designate) of each state as required by General Instruction G7 If 'No, " attach explanation ...... ab X 9 Is the foundation claiming status as a private operating foundation within the meaning of section 49420)(3) or 49420)(5) for calendar year 2013 or the taxable year beginning in 2013 (see instructions for Part XIV)" If 'Yes,' complete X Part XIV ...... 9 10 Did any persons become substantial contributors during the tax year? If 'Yes,' attach a schedule listing their names and addresses ...... 10 X Form 990-PF (2013)
JSA 3E1440 1 000 1762CE 3846 A56703 0 • Form 990-PF (2013) T HE AOTEAROA FOUNDATION 20-1464742 Page 5 NFUMT, Statements Regarding Activities (continued) 11 At any time during the year, did the foundation , directly or indirectly , own a controlled entity within the meaning of section 512(b)( 13)" If "Yes ," attach schedule (see instructions )...... ITCH. 8 11 X 12 Did the foundation make a distribution to a donor advised fund over which the foundation or a disqualified person had advisory privileges? If "Yes," attach statement (see instructions) ...... 12 X 13 Did the foundation comply with the public inspection requirements for its annual returns and exemption application? . . 13 X N/A Website address ►------DEBORAH RUTIGLIANO p L1L-70Y-J N 14 The books are in care of ► Tele honeno ► r70 0 NEW YORK, NY 10178-_ Located at ZIP+4 ► 15 Section 4947 ( a)(1) nonexempt charitable trusts filing Form 990 - PF in lieu of Form 1041 - Check here ...... and enter the amount of tax- exempt interest received or accrued during the year ...... ► 15 16 At any time during calendar year 2013 , did the foundation have an interest in or a signature or other authority Yes No over a bank , securities , or other financial account in a foreign country? , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 16 X See the instructions for exceptions and filing requirements for Form TD F 90- 22 1 If "Yes ," enter the name of
0111791-Statements Reg arding Activities for Which Form 4720 May Be Re q uired File Form 4720 if any item is checked in the "Yes" column , unless an exception applies. Yes No 1 a During the year did the foundation ( either directly or indirectly) (1) Engage in the sale or exchange , or leasing of property with a disqualified person? ...... q Yes q No (2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from) a disqualified person? ...... Yes X No (3) Furnish goods , services , or facilities to (or accept them from ) a disqualified person?...... X Yes No (4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person '? ...... Yes X No (5) Transfer any income or assets to a disqualified person (or make any of either available for the benefit or use of a disqualified person )? ...... q Yes No (6) Agree to pay money or property to a government official? ( Exception . Check " No" if the foundation agreed to make a grant to or to employ the official for a period after termination of government service , if terminating within 90 days ) ...... q Yes No b If any answer is "Yes" to la(1)-(6 ), did any of the acts fail to qualify under the exceptions described in Regulations section 53 494 1 ( d)-3 or in a current notice regarding disaster assistance (see instructions)? ...... 1 b X q Organizations relying on a current notice regarding disaster assistance check here ...... ► c Did the foundation engage in a prior year in any of the acts described in la, other than excepted acts, that were not corrected before the first day of the tax year beginning in 2013? ...... 1 c X 2 Taxes on failure to distribute income ( section 4942) (does not apply for years the foundation was a private operating foundation defined in section 49420 )( 3) or 4942 0 )(5)) a At the end of tax year 2013, did the foundation have any undistributed income (lines 6d and 6e, Part XIII) for tax year( s) beginning before 2013" ...... q Yes Q No
If "Yes ," list the years ► b Are there any years listed in 2a for which the foundation is not applying the provisions of section 4942(a)(2) (relating to incorrect valuation of assets) to the year's undistributed income? (If applying section 4942 ( a)(2) to all years listed , answer "No" and attach statement - see instructions ) ...... 2b N A c If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here
3a Did the foundation hold more than a 2% direct or indirect interest in any business enterprise at any time during the year? ...... q Yes No b If "Yes ," did it have excess business holdings in 2013 as a result of (1) any purchase by the foundation or disqualified persons after May 26 , 1969, (2) the lapse of the 5-year period ( or longer period approved by the Commissioner under section 4943 (c)(7)) to dispose of holdings acquired by gift or bequest, or (3) the lapse of the 10-, 15-, or 20-year first phase holding period? (Use Schedule C, Form 4720, to determine if the foundation had excess business holdings in 2013 ) ...... 3b N A 4a Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes? ...... 4a X b Did the foundation make any investment in a prior year ( but after December 31, 1969 ) that could j eopardize its charitable ouroose that had not been removed from ieooardv before the first day of the tax year beammnq in 2013? 4b X Form 990-PF(2013)
JSA
3E`1450 2 000 1762CE 3846 A56703 0 0
Form 990-PF (2013) THE AOTEAROA FOUNDATION 20-1464742 Page 6 State ments Regarding Activities for Which Form 4720 May Be Required (continued) 5a During the year did the foundation pay or incur any amount to (1) Carry on propaganda , or otherwise attempt to influence legislation (section 4945(e)) ' ...... q Yes N o (2) Influence the outcome of any specific public election (see section 4955 ), or to carry on, directly or indirectly , any voter registration drive? ...... Yes X No (3) Provide a grant to an individual for travel, study, or other similar purposes? , , , , , , , , , , , , q Yes X No (4) Provide a grant to an organization other than a charitable , etc, organization described in section 509 ( a)(1), (2), or ( 3), or section 4940 (d)(2)" (see instructions ) ...... U Yes U No (5) Provide for any purpose other than religious , charitable, scientific, literary, or educational purposes , or for the prevention of cruelty to children or animals? ...... q Yes a No b If any answer is "Yes" to 5a(1 )-( 5), did any of the transactions fail to qualify under the exceptions described in Regulations section 53 4945 or in a current notice regarding disaster assistance (see instructions) X q Organizations relying on a current notice regarding disaster assistance check here ...... ► c If the answer is "Yes" to question 5a(4), does the foundation claim exemption from the tax because it maintained expenditure responsibility for the grants ATCH ...... Yes q No If "Yes," attach the statement required by Regulations section 53 4945-5(d) 6a Did the foundation , during the year, receive any funds , directly or indirectly , to pay premiums on a personal benefit contract? ...... q Yes No b Did the foundation, during the year , pay premiums , directly or indirectly, on a personal benefit contract? X If "Yes" to 6b, file Form 8870 7a At any time during the tax year , was the foundation a party to a prohibited tax shelter transaction ? , q Yes No b If "Yes ." did the foun dation receive any proceeds or have any net income attributable to the transaction on About Officers, Directors , Trustees , Foundation Managers , Highly Paid Emplt
1 1 ist all officers directors- trustees- foundation managers and their compensation (see instructions). (b) Title, and average (c) Compensation (d) Contributions to (e) Expense account, paid employee benefit (a) Name and address hours per week ( If not , plans other allowances devoted to position enter-0 - and deferred compensation
------ATCH 10 0
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2 Compensation of five hiohest - paid emolovees (other than those included on line 1 - see instructi ons). If none. enter "NfNE " (d) Contributions to (b) Title, and average employee benefit (e) Expense account, hours per week (c) Compensation (a) Name and address of each employee paid more than $50,000 plans and deferre d other allowances devoted to position compensation sation
------ATCH 11 77,037. 12,060. 0
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Total number of other em p loyees p aid over $50 , 000 . ► Form 99U-Fl(2013)
JSA 3 E 1180 1 000 1762CE 3846 A56703 0 0
THE AOTEAROA FOUNDATION 20-1464742 Form 990 -PF (2013) Page 7 Information About Officers, Directors , Trustees , Foundation Managers , Highly Paid Employees, and Contractors (continued) 3 Five highest-paid independent contractors for professional services (see instructions) . If none, enter "NONE." (a) Name and address of each person paid more than $ 50,000 ( b) Type of service (c) Compensation
------NONE
professional Total number of others receiving over $50,000 for services .. . ► Summary of Direct Charitable Activities
List the foundation's four largest direct chartable activities during the tax year Include relevant statistical information such as the number of Expenses organizations and other beneficiaries served, conferences convened, research papers produced, etc I N/A ------
2 ------
3 ------
4 ------
EarrW : Summary of Program-Related Investments (see instructions) Describe the two largest program -related investments made by the foundation during the tax year on lines 1 and 2 Amount 1 NONE ------
2 ------
All other program-related investments See instructions 3 NONE ------
Total. Add lines 1 through 3 , ► Form 990-PF(2013)
JsA 3E1485 1 000 1762CE 3846 A56703 • 0
THE AOTEAROA FOUNDATION 20-1464742 Form 990 - PF (2013) Page 8 Minimum investment Return (All domestic foundations must complete this part. Foreign foundations, see instructions.) 1 Fair market value of assets not used (or held for use ) directly in carrying out charitable, etc, purposes a Average monthly fair market value of securities ...... 1a b Average of monthly cash balances,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, , ,,,,, lb 291,652. c Fair market value of all other assets (see instructions) .0 39, 0411,1456. d Total (add lines la, b, andc),.., ,,,,,,,,,,,,,,,, , 1d 39 ,333,108. e Reduction claimed for blockage or other factors reported on lines 1a and 1c (attach detailed explanation) ...... I le 2 Acquisition indebtedness applicable to line 1 assets ...... 2 3 39,333,108. 3 Subtract line 2 from line 1d ...... 4 Cash deemed held for charitable activities Enter 1 1/2 % of line 3 (for greater amount, see 4 997. instructions)...... , . , ...... , , , ...... 589, 5 Net value of noncharitable - use assets . Subtract line 4 from line 3 Enter here and on Part V, line 4 38,743,111. 6 Minimum investment return . Enter 5% of line 5 ...... 1,937,156. Distributable Amount (see instructions) (Section 49420)(3) and 0)(5) private operating foundations and certain foreign organizations check here ► and do not complete this part ) I Minimum investment return from Part X, line 6 ...... 1 1, 937, 156. 2a Tax on investment income for 2013 from Part VI, line 5 2a 21,395. b Income tax for 2013 (This does not include the tax from Part VI) . 2b c Add lines 2a and 2b 2c 21, 395. 3 Distributable amount before adjustments Subtract line 2c from line 1 ...... 3 1, 915,761. 4 Recoveries of amounts treated as qualifying distributions , , , , , , , , , , , , , , , , , , , , , , 4 1, 915, 761. 5 Add lines 3 and 4 ...... 5 6 Deduction from distributable amount (see instructions), ...... 6 7 Distributable amount as adjusted Subtract line 6 from line 5 Enter here and on Part XIII, line 1. 7 1,915,761. IMM Qualifying Distributions (see instructions)
I Amounts paid (including administrative expenses) to accomplish charitable, etc , purposes. a Expenses , contributions, gifts, etc - total from Part I, column (d), line 26 , , , , , , , , , , , , , , , , la 2, 355, 306. b Program-related investments - total from Part IX-B ...... lb 2 Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc, purposes ...... 2 3 Amounts set aside for specific charitable projects that satisfy the a Suitability test (prior IRS approval required) ...... 3a b Cash distribution test (attach the required schedule ), ,, , , ,, , , , , , , , , , , , , , , , , , , 3b 4 Qualifying distributions . Add lines 1 a through 3b Enter here and on Part V, line 8, and Part XIII, line 4. , , , 4 2,355,306. 5 Foundations that qualify under section 4940(e) for the reduced rate of tax on net investment income Enter 1% of Part I, line 27b (see instructions), , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 5 0 6 Adjusted qualifying distributions . Subtract line 5 from line 4 6 2, 355, 306. Note . The amount on line 6 will be used in Part V, column (b), in subsequent years when c alculating whether the foundation qualifies for the section 4940(e) reduction of tax in those years Form 990-PF (2013)
J5A
3E1470 1 000 1762CE 3846 A56703 0 0
THE AOTEAROA FOUNDATION 20-1464742
Form 990-PF (2013) Page 9 Undistributed Income (see instructions) (a) (b) (c) (d) Corpus Years prior to 2012 2012 2013 1 Distributable amount for 2013 from Part Xl, line 7 1, 915,761. 2 Undistributed income, if any, as of the end of 2013 a Enter amount for 2012 only 107,074. b Total for pnoryears 20 11 20 1 20 09 3 Excess distributions carryover, if any, to 2013 a From 2008 b From 2009 c From 2010 d From 2011 e From 2012 , f Total of lines 3a through e , , , , ...... 4 Qualifying distributions for 2013 from Part XII, 2, 355, 306. line4 ► $ a Applied to 2012, but not more than line 2a 107 , 07 4 . b Applied to undistributed income of prior years (Election required - see instructions) . .. .. ,
c Treated as distributions out of corpus (Election required - see instructions) ...... d Applied to 2013 distributable amount , , , . 1, 915,761. e Remaining amount distributed out of corpus . . 332, 471. 5 Excess distributions carryover applied to 2013 , (If an amount appears in column (d), the same amount must be shown in column (a) ) 6 Enter the net total of each column as indicated below: a Corpus Add lines 3f, 4c, and 4e Subtract line 5 332,471. b Prior years' undistributed income Subtract line 4b from line 2b c Enter the amount of prior years' undistributed income for which a notice of deficiency has been issued, or on which the section 4942(a) tax has been previously assessed ...... d Subtract line 6c from line 6b Taxable amount - see instructions e Undistributed income for 2012 Subtract line 4a from line 2a Taxable amount - see instructions ......
f Undistributed income for 2013 Subtract lines 4d and 5 from line 1 This amount must be distributed in 2014 ...... 7 Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170(b)(1)(F) or 4942(g)(3) (see instructions) 8 Excess distributions carryover from 2008 not applied on line 5 or line 7 (see instructions) , 9 Excess distributions carryover to 2014. Subtract lines 7 and 8 from line 6a 332,471. 10 Analysis of line 9 a Excess from 2009. . . b Excess from 2010. . . c Excess from 2011 . , , d Excess from 2012 . . , e Excess from 2013. 332,471. 1 Form 990-PF(2013)
JSA 3E 1480 1 000 1762CE 3846 A56703 Form 990-PF (2013) THE AOTEAROA FOUNDATION 20-1464742 Page 10 Private O p eratin g Foundations ( see instructions and Part VII-A, q uestion 9 ) NOT APPLICABLE la If the foundation has received a ruling or determination letter that it is a private operating foundation, and the ruling is effective for 2013, enter the date of the ruling ...... " . ► b Check box to indicate whether the foundation is a private operating foundation described in section 49420)(3) or Li 49420)(5) Tax year Prior 3 years 2 a Enter the lesser of the ad- (e) Total lusted net income from Part (a) 2013 (b) 2012 (c) 2011 (d) 2010 or the minimum investment return from Part X for each year listed
b 85% of line 2a . " . " .
C Qualifying distnbutions from Part XII, line 4 for each year listed ,
d Amounts included in line 2c not used directly for active conduct of exempt activities . . . . . e Qualifying distributions made directly for active conduct of exempt activities Subtract line 2d from line 2c . . . . , . 3 Complete 3a, b, or c for the alternative test relied upon a "Assets' alternative test - enter
(1) Value of all assets (2) Value of assets qualdying under section 49420)(3)(B)(i) . . . . . b "Endowment" alternative test- enter 2/3 of minimum invest- ment return shown in Part X line 8 for each year listed , , , C "Support" alternative test - enter
(1) Total support other than gross investment income (interest, dmdends, rents, payments on securities loans (section 512(a)(5)), or royalties) , , . " , , (2) Support from general public and 5 or more exempt organizations as provided in section 4942 t)(3((9)(ni) . . . . (3) Largest amount of sup- port from an exempt organization, , . " , 4 Gross investment income Supplementary Information (Complete this part only if the foundation had $5,000 or more in assets at any time during the year - see instructions.) I Information Regarding Foundation Managers: a List any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation before the close of any tax year (but only if they have contributed more than $5,000) (See section 507(d)(2) ) JULIAN H. ROBERTSON JR. b List any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the ownership of a partnership or other entity ) of which the foundation has a 10% or greater interest
NONE 2 Information Regarding Contribution , Grant, Gift, Loan, Scholarship , etc., Programs: Check here ° q if the foundation only makes contributions to preselected charitable organizations and does not accept unsolicited requests for funds If the foundation makes gifts, grants, etc (see instructions) to individuals or organizations under other conditions, complete items 2a, b, c, and d a The name, address, and telephone number or e-mail address of the person to whom applications should be addressed
b The form in which applications should be submitted and information and materials they should include
c Any submission deadlines
d Any restrictions or limitations on awards , such as by geographical areas , charitable fields, kinds of institutions , or other factors
3 E 1490JS`1 000 Form 990-PF (2013) 1762CE 3846 A56703 • • THE AOTEAROA FOUNDATION 20-1464742 Form 990 -PF (2013) Page 11 now- Supplementary Information (continued) 3 Grants and Contributions Paid Durina the Year or ADOroved for Future Payment If recipient is an indmdual , Foundation Reci p ient show any relationship to Purpose of grantor s t a tus of Amount a ny foundation manager contributionution and address (home or business ) or substantial contnbutor recipient a Paid during the year
ATCH 12
Total ...... 3a 2,200,787. b Approved for future payment
Total 3b Form 990-PF (2013) JSA 3E1491 1 000
1762CE 3846 A56703 • • THE AOTEAROA FOUNDATION 20-1464742 Form 990-PF (2013 ) Page 12 Analysis of Income- Producing Activities Enter g ross amounts unless otherwise indicated Unrelated business income Excluded by section 512, 513, or 514 (e) Related or exempt (d ) (a) (b) (c) function income Business code Amount Amount 1 Prc gram service revenue Exclusion code (See instructions a b c d e f 9 Fees and contracts from government agencies 2 Me mbership dues and assessments , , , , , 3 Intl rest on savings and temporary cash investments 4 Dn idends and interest from securities 5 Ne rental income or (loss) from real estate a Debt-financed property , , , , , , , , , b Not debt-financed property , , , , , , , 6 Net rental income or (loss) from personal property 7 Oth er investment income 8 Gai n or (loss ) from sales of assets other than inventory 9 NeNet income or (loss) from special events , , 10 Gross profit or (loss) from sales of inventory. 11 Ot h errevenue a b ATCH 13 1,076,516. c d e 12 Su btotal Add columns (b), (d), and (e) 1,076,516. 13 Total . Add line 12, columns ( b), (d), and (e) ...... 13 1, 076,516. (See worksheet in line 13 instructions to verify calculations ) . Relationship of Activities to the Accomplishment of Exempt Purposes
Line No. Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to the y accomplishment of the foundation's exempt purposes (other than by providing funds for such purposes) (See Instructions )
JSA Form 990-PF (2013) 3E1492 1 000 1762CE 3846 A56703 Form 990-PF(2013) THE AOTEAROA FOUNDATION 20-1464742 Page 13 Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exem pt Organizations 1 Did the organization directly or indirectly engage in any of the following with any other organization described Yes No in section 501 ( c) of the Code ( other than section 501(c)(3 ) organizations) or in section 527, relating to political organizations? a Transfers from the reporting foundation to a noncharitable exempt organization of (1) Cash ...... 1a1 X (2) Other assets ...... 1a 2 X b Other transactions ( 1 ) Sales of assets to a noncharitable exempt organization ...... 1b 1 X (2) Purchases of assets from a nonchantable exempt organization ...... 1b(2 ) X (3) Rental of facilities , equipment, or other assets ...... 1b 3 X (4) Reimbursement arrangements ...... 1b 4 X (5) Loans or loan guarantees ...... 1 b 5 X (6) Performance of services or membership or fundraising solicitations ...... 1b s X c Sharing of facilities , equipment , mailing lists , other assets , or paid employees ...... 1c X d If the answer to any of the above is "Yes ," complete the following schedule Column ( b) should always show the fair market value of the goods , other assets , or services given by the reporting foundation If the foundation received less than fair market value in any transaction or sharing arrangement, show in column ( d) the value of the goods , other assets , or services received (a) Line no (b) Amount involved (c) Name of noncharltable exempt organization (d) Description of transfers, transactions , and sharing arrangements N/A N/A
2a Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations described in section 501 ( c) of the Code ( other than section 501 (c)(3)) or in section 527? ...... q Yes No h If "Yes " cmminlete the fnllnwina schedule (a) Name of organization (b) Type of organization (c) Description of relationship
Under penalties of perjury, I declare that I have examined this return , including accompanying schedules and statements , and to the best of my knowledge and belief, it is true, correct , and comp) a Dacia ion of preparer ( other than taxpayer) is based on all information of which preparer has any knowledge Sign ' It^lo I`^ Here Signatur f ceror tru tee Date
PnnUType preparers name PrJ,ssiparer Paid GARY S CASTLE rt pareI Use Only
Jsn 3E1493 1 000 1762CE THE AOTEAROA FOUNDATION 20-1464742
ATTACHMENT 1
FORM 990PF, PART I - OTHER INCOME
REVENUE AND NET EXPENSES INVESTMENT DESCRIPTION PER BOOKS INCOME DEEMED DIVIDEND - SUBPART F INCOME FROM INVESTMENT IN AOTEAROA FOUNDATION CORP. 1,076,516. 1,076,516.
TOTALS 1,076,516. 1,076,516.
•
ATTACHMENT 1 1762CE 3846 A56703 THE AOTEAROA FOUNDATION 20-1464742
ATTACHMENT 2
FORM 990PF , PART I - LEGAL FEES
REVENUE AND NET ADJUSTED EXPENSES INVESTMENT NET CHARITABLE DESCRIPTION PER BOOKS INCOME INCOME P URPOSES
LEGAL FEES IN CONNECTION WITH FOUNDATION MATTERS 14,039 . 14,039.
TOTALS 14,039. 14,039.
S
ATTACHMENT 2 1762CE 3846 A56703 THE AOTEAROA FOUNDATION 20-1464742
ATTACHMENT 3
FORM 990PF, PART I - ACCOUNTING FEES
REVENUE AND NET ADJUSTED EXPENSES INVESTMENT NET CHARITABLE DESCRIPTION PER BOOKS INCOME INCOME P URPOSES
ACCOUNTING, TAX RETURN PREPARATION & CONSULTING FEES 13,500. 6,750. 6,750. • TOTALS 13,500. 6,750. 6,750.
•
ATTACHMENT 3 1762CE 3846 A56703 • • THE AOTEAROA FOUNDATION 20-1464742
ATTACHMENT 4
FORM 990PF, PART I - TAXES
REVENUE AND EXPENSES DESCRIPTION PER BOOKS
FEDERAL EXCISE TAX ON NET INVESTMENT INCOME 55,144.
TOTALS 55,144.
1762CE 3846 A56703 THE AOTEAROA FOUNDATION 20-1464742
ATTACHMENT 5
FORM 990PF, PART I - OTHER EXPENSES
REVENUE AND EXPENSES CHARITABLE DESCRIPTION PER BOOKS P URPOSES NYS FILING FEES 750. 750. COMMUNICATION EXPENSES 493. 493. OFFICE EXPENSE 11,378 . 11,378. POSTAGE & SHIPPING 1,569. 1,569.
TOTALS 14,190. 14,190.
ATTACHMENT 5 1762CE 3846 A56703 THE AOTEAROA FOUNDATION 20-1464742
ATTACHMENT 6
FORM 990PF, PART II - OTHER INVESTMENTS
BEGINNING ENDING ENDING DESCRIPTION BOOK VALUE BOOK VALUE FMV
INVESTMENT IN AOTEAROA FOUNDATION CORPORATION 29,936,318. 28,462,834. 40,081,497. TOTALS 29, 936, 318. 28, 462, 834. 40, 081, 497 _ S
ATTACHMENT 6 1762CE 3846 A56703 • • THE AOTEAROA FOUNDATION 20-1464742
ATTACHMENT 7
FORM 990PF, PART II - OTHER LIABILITIES
BEGINNING ENDING DESCRIPTION
DUE TO AFFILIATES 53,508 32, 810.
TOTALS 53,508. 32,810.
1762CE 3846 A56703 • THE AOTEAROA FOUNDATION 20-1464742
ATTACHMENT 8
FORM 990PF, PART VII-A, LINE 11A-TRANSFERS FROM CONTROLLED ENTITY STATEMENT
TOTAL AMOUNT 3,000,000.
CONTROLLED ENTITY'S NAME: AOTEAROA FOUNDATION CORPORATION CONTROLLED ENTITY'S ADDRESS: P.O. BOX 309, UGLAND HOUSE CITY, STATE & ZIP: GRAND CAYMAN, KY1-1104 FOREIGN COUNTRY: CAYMAN ISLANDS EIN: FOREIGN TRANSFER AMOUNT: 3, 000, 000. EXPLANATION OF TRANSFER FROM CONTROLLED ENTITY: REDEMPTION OF SHARES
1762CE 3846 A56703 •
THE AOTEAROA FOUNDATION 20-1464742
ATTACHMENT 9
FORM 990PF, PART VII-B, LINE 5C-EXPENDITURE RESPONSIBILITY STATEMENT
GRANTEE'S NAME: NEW ZEALAND ANTARCTIC RESEARCH INSTITUTE GRANTEE'S ADDRESS: PRIVATE BAG 4745 CITY, STATE & ZIP: CHRISTCHURCH 8140 FOREIGN COUNTRY: NEW ZEALAND GRANT DATE: 11/08/2013 GRANT AMOUNT: 838,751. GRANT PURPOSE: SEE ATTACHED STATEMENT AMOUNT EXPENDED: 838,751. ANY DIVERSION? NO DATES OF REPORTS: 06/30/2014 VERIFICATION DATE: 06/30/2014 RESULTS OF VERIFICATION: TO THE KNOWLEDGE OF THE FOUNDATION, THE GRANTEE HAS NOT DIVERTED ANY PORTION OF THE GRANTS FROM THE PURPOSE FOR WHICH THE GRANT WAS MADE.
GRANTEE'S NAME: DEPARTMENT OF CONSERVATION GRANTEE'S ADDRESS: PO BOX 644 CITY, STATE & ZIP: NAPIER FOREIGN COUNTRY: NEW ZEALAND GRANT DATE: 12/20/2013 GRANT AMOUNT: 191,147. GRANT PURPOSE: SEE ATTACHED STATEMENT AMOUNT EXPENDED: 191,147. ANY DIVERSION? NO DATES OF REPORTS: 12/04/2013 VERIFICATION DATE: 12/04/2013 RESULTS OF VERIFICATION: TO THE KNOWLEDGE OF THE FOUNDATION, THE GRANTEE HAS NOT DIVERTED ANY PORTION OF THE GRANTS FROM THE PURPOSE FOR WHICH THE GRANT WAS MADE.
1762CE 3846 A56703 E •
AOTEAROA FOUNDATION
101 Park Avenue New York, NY 10178 (212) 984-5709 (212) 984-2454 (Fax)
Amendment to Terms and Conditions
Name of Grantee: New Zealand Antarctic Research Institute
Contact: Gary Wilson Director
Address: Antarctica New Zealand Private Bag 4745 Christchurch 8140 New Zealand
Original Grant Period: from September 1, 2011 to June 30, 2017
Reference Number: 9905487
For good and valuable consideration , the Aotearoa Foundation and your organization, identified above , agree that the Grant Letter signed on and dated September 21, 2011 by the Aotearoa Foundation (the "Agreement") is hereby amended as follows (the "Amendment").
Modification of Retention of Key Personnel Clause
In case of material change in the leadership of New Zealand Antarctic Research Institute, in particular, Gary Wilson, Director, the Aotearoa Foundation reserves the right to suspend payments until it, in its sole discretion, is satisfied that the successor has comparable quality and commitment and is likely to be an effective replacement.
No-Cost Extension of Grant Period
The grant period has been extended and now dates from 9/ 1/2011 to 12/31/2017
Modification of Objectives and Milestones
Please see the revised Attachment I for the objectives and milestones schedule.
Modification of Payment & Reporting Schedule
Please see the revised Attachment II for the payment and reporting timetable. • •
All terms and conditions of the Agreement not specifically identified in and modified by this Amendment will be unchanged and will remain in full force and effect.
ACCEPTED AND AGREED THIS 26th DAY OF JUNE, 2013
Grantee: New Zealand Antarctic Research Institute
By: Gary Wilson Title: Director
Signature:
Date : Jw t ?
Grantor: Aotearoa Foundation
By: John Hood Title: Trustee
Signature: ..--
Please sign both copies of the Amendment and return one signed copy to:
Barbara Morgan Robertson Foundation 101 Park Avenue - 21St Floor New York, NY 10178
2 • •
Attachment I: REVISED Objectives & Milestones Schedule Aotearoa Foundation Grant to New Zealand Antarctic Research Institute
Grant Amount: Up to $5,180,000.00 NZD
Vr aIii 1 G1 lull . U\.1J1411LVV1 1, LV1 1 -LIV\+L11VVl J1, LV1
Grant Purpose : Support for the establishment and operation of a new science body (NZARI) to advance world-class research on the Southern Continent and its impact on the global ecosystem
Detailed milestones and program adjustments will be discussed with Foundation staff on a bi-annual basis
Objectives Milestones Expected Date
Development and execution • Requests for proposals issued • September each year of high-quality research programming • At least five new research • June 30 each year projects approved annually
• Annual field campaign underway • December each year
• Annual scientific workshop to • September each year develop integrated program proposals
• Large-scale, integrated projects • One per year implemented Public and stakeholder • Winter School conducted • September 2014, 2015, engagement 2016 and 2017
• Public speaking and popular • At least 2 per year press articles
• Media engagement in new • Each Year projects and programs Additional funding secured • $500K in logistical support for • Each year funded projects
• $500K match funding secured • Each year
• $2M logistical support for new • June 2014, 2015, 2016 program and 2017
• $1 M per annum from a new • December 2014, 2015, Government investment 2016 and 2017
3 Attachment II: REVISED Payment & Reporting Schedule Aotearoa Foundation Grant to New Zealand Antarctic Research Institute
Disbursement Report Due Date Disbursement Amount NZD Requirements Date fun tol
N/A Paid: October 21, $180,000 • Execution of agreement 2011
December 15, 2012 Paid: December $500,000 • Submission of interim report 24, 2012 • Satisfactory achievement of milestones, namely the successful recruitment of 5 trustees, an Executive Director and the International Science Panel • Submission of detailed budget and milestones for the next three years.
September 15, 2013 September 30, $500,000 • Submission of interim programmatic and 2013 financial report • Satisfactory achievement of milestones • Submission of detailed budget and milestones for the next grant period
March 15, 2014 March 30, 2014 $500,000 • Submission of interim programmatic and financial report • Satisfactory achievement of milestones • Submission of detailed budget and milestones for the next grant period
September 15, 2014 September 30, $500,000 • Submission of interim programmatic and 2014 financial report • Satisfactory achievement of milestones • Submission of detailed budget and milestones for the next grant period
March 15, 2015 March 30, 2015 $500,000 • Satisfactory Foundation and Peer Review of progress over the first three years • Submission of interim programmatic and financial report • Satisfactory achievement of milestones • Proof of matching fund requirement • Submission of detailed budget and milestones for the next grant period
September 15, 2015 September 30, $500,000 • Submission of interim programmatic and 2015 financial report • Satisfactory achievement of milestones 11
Attachment II: REVISED Payment & Reporting Schedule Aotearoa Foundation Grant to New Zealand Antarctic Research Institute
• Proof of matching fund requirement • Submission of detailed budget and milestones for the next grant period
March 15, 2016 March 30, 2016 $500,000 • Submission of interim programmatic and financial report • Satisfactory achievement of milestones • Proof of matching fund requirement • Submission of detailed budget and milestones for the next grant period
September 15, 2016 September 30, $500,000 • Submission of interim programmatic and 2016 financial report • Satisfactory achievement of milestones • Proof of matching fund requirement • Submission of detailed budget and milestones for the next grant period
March 15, 2017 March 30, 2017 $500,000 • Submission of interim programmatic and financial report • Satisfactory achievement of milestones • Proof of matching fund requirement • Submission of detailed budget and milestones for the next grant period
September 15, 2017 September 30, $500,000 • Submission of interim programmatic and 2017 financial report • Satisfactory achievement of milestones • Submission of detailed budget and milestones for the next grant period January 31, 2018 N/A N/A • Submission of final programmatic and financial report AOTEAROA FOUNDATION
101 Park Avenue New York, NY 10178 (212) 984-5709 (212) 984-2454 (Fax)
Amendment to Terms and Conditions
Name of Grantee: Department of Conservation
Contact: Lou Sanson Director-General
Address: Conservation House 18-32 Manners Street P.O. Box 10-420 Wellington 6143 New Zealand
Original Grant Period: from 12/15/2010 to 12/14/2013
Reference Number: 9905175
For good and valuable consideration, the Aotearoa Foundation and your organization, identified above, agree that the grant agreement signed on and dated December 6, 2010 by the Aotearoa Foundation (the "Agreement") is hereby amended as follows (the "Amendment").
No-Cost Extension for Grant Period
The grant period has been retroactively extended and now dates from 12/15/2010 to 5/31/2014
Modification of Payment & Reporting Schedule
Please see the revised Attachment II for the payment and reporting timetable.
Retention of Key Personnel Clause
In case of material change in the leadership of the Department of Conservation, in particular, Lou Sanson, Director-General, the Foundation reserves the right to suspend payments until it, in its sole discretion, is satisfied that the successor has comparable quality and commitment and is likely to be an effective replacement. 0 0
All teens and conditions of the Agreement not specifically identified in and modified by this Amendment will be unchanged and will remain in full force and effect.
.. TTED . ND • GRE THIS 13th nit V OF ACE 1tY1V Ar' IX!'/ n RYa A -,-.a.t^a v SEPTEMBER, 2013
Grantee: Department of Conservation
By: Lou Sanson Title: Director-General
Signature:
Date: 24' 9` i3
Grantor: Aotearoa Foundation
By: John Hood Title: Trustee
Signature:
,`
Please sign both copies of the Amendment and return one signed copy to:
Barbara Morgan Robertson Foundation 101 Park Avenue - 2151 Floor New York, NY 10178
1) 0 0
Attachment II: REVISED Payment & Reporting Schedule Aotearoa Foundation Grant to Department ofConservation
=Disbursement; =-Report-DueDate ` "_Disbuisement Date,-- Amount Requirements
Paid $550,000 • Execution of contract - December 20, 2010 NZD
N/A N/A June 15, 2011 • Submission of interim report
Paid • Satisfactory achievement of December 1, 2011 December 28, 2011 milestones $1NZD 0 • Submission of interim report
June 15, 2012 N/A N/A • Submission of interim report
June 15, 2013 N/A N/A • Submission of interim report
Satisfactory achievement of $230,000 • 2013 December 31, 2013 milestones December 1, NZD • Submission of interim report
• Satisfactory achievement of June 30, 2014 N/A N/A milestones • Submission of final report THE AOTEAROA FOUNDATION 20-1464742
FORM 990PF PART VIII - LIST OF OFFICERS, DIRECTORS, AND TRUSTEES ATTACHMENT 10
CONTRIBUTIONS EXPENSEACCT TITLE AND AVERAGE HOURS PER TO EMPLOYEE AND OTHER NAME AND ADDRESS WEEK DEVOTED TO POSITION COMPENSATION BENEFIT PLANS ALLOWANCES
JULIAN H. ROBERTSON JR. TRUSTEE 0 0 0 C/O THE ROBERTSON FOUNDATION 1.00 ATTN: D. RUTIGLIANO, 101 PARK AVE NEW YORK, NY 10178
JOHN HOOD TRUSTEE 0 0 0 C/O THE ROBERTSON FOUNDATION 6.00 ATTN: D. RUTIGLIANO, 101 PARK AVE NEW YORK, NY 10178
GRAND TOTALS 0 0 0
•
ATTACHMENT 10 1762CE 3846 A56703 THE AOTEAROA FOUNDATION 20-1464742
990PF, PART VIII - COMPENSATION OF THE FIVE HIGHEST PAID EMPLOYEES ATTACHMENT 11
TITLE AND AVERAGE CONTRIBUTIONS EXPENSE ACCT HOURS PER WEEK TO EMPLOYEE AND OTHER NAME AND ADDRESS DEVOTED TO POSITION COMPENSATION BENEFIT PLANS ALLOWANCES
KATY GOLDING PROGRAM OFFICER 77,037. 12,060. 0 C/O THE AOTEAROA FOUNDATION 20.00 101 PARK AVENUE NEW YORK, NY 10178
TOTAL COMPENSATION 77,037 . 12,060.
ATTACHMENT 11 1762CE 3846 A56703 THE AOTEAROA FOUNDATION 20-1464742
FTIRM QQ(1PCPART YV - (:RANTS ANTI Cl1NTRTRNTTnNC PATI1 ff11RTNf: TNP YEAR
ATTACHM I'NT 17
RELATIONSHIP TO SUBSTANTIAL CONTRIBUTOR
AND
RECIPIENT NAME AND ADDRESS FOUNDATION STATUS OF RECIPIENT PURPOSE OF GRANT OR CONTRIBUTION AMOUNT
ASIA NEW ZEALAND FOUNDATION NONE GENERAL PURPOSE 43,491 PO BOX 10 144 PC
WELLINGTON 6143
NEW ZEALAND
FRIENDS OF THE UNIVERSITY OF AUCKLAND NONE GENERAL PURPOSE 688,001
665 BROADWAY PC 0 NEW YORK, NY 10012
NEW ZEALAND ANTARCTIC RESEARCH INSTITUTE NONE GENERAL PURPOSE 838,751
PRIVATE BAG 4745 NC
CHRISTCHURCH, 8140
NEW ZEALAND
DEPARTMENT OF CONSERVATION NONE GENERAL PURPOSE 191,147.
PO BOX 644 NC
NAPIER
NEW ZEALAND
TEACH FIRST NEW ZEALAND TRUST NONE GENERAL PURPOSE 229,772
PO BOX 2121 SHORTLAND STREET PC AUCKLAND, 1140 NEW ZEALAND • MIKE CORMACK FOUNDATION NONE GENERAL PURPOSE 50,351
C/O P.WELLS, MARTELLI MCKEGG 1141 PC
PO BOX 5745
AUCKLAND
NEW ZEALAND
ATTACHMENT 12
1762CE 3846 A56703 THE AOTEAROA FOUNDATION 20-1464742
RELATIONSHIP TO SUBSTANTIAL CONTRIBUTOR
AND
RECIPIENT NAME AND ADDRESS FOUNDATION STATUS OF RECIPIENT PURPOSE OF GRANT OR CONTRIBUTION AMOUNT
NORTHLAND EMERGENCY SERVICES TRUST NONE GENERAL PURPOSE 34,688.
PO BOX 8011 PC
KENSINGTON, WHANGAREI
NEW ZEALAND
MOTU ECONOMIC & PUBLIC POLICY RESEARCH TRUST NONE GENERAL PURPOSE 124,586 97 CUBA STREET PO BOX 24930 6140 PC • WELLINGTON NEW ZEALAND
TOTAL CONTRIBUTIONS PAID
•
ATTACHMENT 12
1762CE 3846 A56703 THE AOTEAROA FOUNDATION 20-1464742
FORM 990-PF , PART XVI-A - ANALYSIS OF OTHER REVENUE ATTACHMENT 13
BUSINESS EXCLUSION RELATED OR EXEMPT DESCRIPTION CODE AMOUNT CODE AMOUNT FUNCTION INCOME
DEEMED DIVIDEND - SUBPART F INCOME FROM INVESTMENT IN AOTEAROA FOUNDATION CORP. 14 1,076,516.
TOTALS 1,076,516.
S
ATTACHMENT 13 1762CE 3846 A56703 • • THE AOTEAROA FOUNDATION 20-1464742
FEDERAL FOOTNOTES
STAT EMENT A PART VII-B, QUESTION 5(A)(4) STATUS OF GRANTEE
THE AOTEAROA FOUNDATION MADE GRANTS DURING THE YEAR ENDING DECEMBER 31, 2013 TO THE NORTHLAND EMERGENCY SERVICES TRUST OF NEW ZEALAND. BASED ON THE FOREIGN PUBLIC CHARITY EQUIVALENCE AFFIDAVIT (SEE ATTACHED), THE AOTEAROA FOUNDATION HAS MADE A GOOD FAITH DETERMINATION THAT THE NORTHLAND EMERGENCY SERVICES TRUST IS THE EQUIVALENT OF A PUBLIC CHARITY DESCRIBED IN SECTION 501(C) (3) AND 509(A) OF THE CODE.
1762CE 3846 A56703 FROM :ST JOHN WHAM I FAX NO. :09 4372140 Sep. 03 2010 12:42PM P1
FOREIGN PUBLIC CHARM EQUIVALENCE AFFIDAVIT OF OFFICER
The undersigned, to assist grantmaking foundations ip the United States of America determine . whether s 49 ( (the "Grantee") is the equivalent of a public charity described in section 509(a)(1), (2) or (3) of the United States Intcrr Revenue Code or a private operating foundation described in section 4942(j)(3) of the Code, makes the following statement:
1. I ,Office. I am the [ofactat title] _ t ^ to ofthe Gtartee.
2, Formation and purposes. The Grantee was created by [identify statute, charter, or other documont] _ (',k-1 ayr& c- Ir A T in [year] , and is operated exclusively for the following purpose or purposes [check applicable box or boxea);
il charitable
O religious
.0 scientific
C] literary
C] educational
10 fostering national or international amateur sports competition
q prevention of cruelty to children or animals
3. Programs and activities. The activities of the Grantee have included and will include [descnIq past, current, and future activities and operations]:
CAI (j 4A 1. -r 1 Os-J eto Rt 1ti1•Pt [ I4 Irk; i L4 Q4t r C!' #4A M u.W I c?^ FROM :ST JOHN WHANI El FAX NO. :09 4372140 Sep. 03 2010 12:43PM P2
4. Governing documents. Copies of the charter, bylaws, and other documents pursuant to which the Grantee is governed are attached.
5, No improper private benefits. The laws and customs applicable to the Grantee do not permit any of its income or assets to be distributed to, or applied for the benefit of, a private persoh.or non-charitable organization other than: (a) pursuant to the conduct of the Grnntee's chart ble activities; (b) as payment of reasonable compensation for services rendered; or (c) as paym t representing the fair market value of property which the Grantee has purchased.
6. No proprietary interest to Grantee. The Grantee has no shareholders or members who have proprietary interest in its income or assets.
7. Distribution of assets on dissolution. In the event that the Grantee were to be liquidated or dissolved, under the laws and customs applicable, or under the governing instruments, all its assets. would be distributed to another not-for-profit organization for charitable, religious, scientific, literary, or eduoational purposes, or to a government instrumentality for a public purpose. A copy of the relevant statutory law or provisions it the governing instruments controlling the distribution of the organization's assets on liquidation is attached,
8. ' Limits on activities . The laws and customs applicable to the Grantee do not permit the organization, other than as an insubstantial part of its activities, to (a) engage in activities that are not for religious, charitable, scientific, literary, or educational purposes; or (b) attempt to influle legislation, by propaganda or otherwise.
9. No candidate campaign activity. The laws and customs applicable to the Grantee do not permit the organization directly or indirectly to participate or intervene in any political camp r on behalf of, or in opposition to, any candidate for public office.
-2- FROM :ST Jo-t1 WHRNGAf2Ei FAX NO. :09 4372140 Sep. 03 2010 12:43PM P3
Oran'- • [ ` ]: 10. Control by other organizatiofl3 . The t11pl1LVV . O WIVVV V
, I not controlled by or operated in connection with, any other organization
Q controlled by or operated in connection with another organization or organizations as follows [descrlbe]:
11. 1 Qualification as publicly supported organization. The Cimntee is [check one ofthe tt,uowingl:
q a school (that is, an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on and that has adopted and operates pursuant to a racially nondiscriminatory policy as to students, and has completed IRS Form 5578).
D a hospital (drat is, an organization whose principal purpose or function is the providing of medical or hospital care).
q a ohuroh (that Is, a church, synagogue, or mosque).
W none of the above, but it satisfies a public support test as demonstrated by the attached Schedule of Financial Support for the four most recently completed taxable years.
12. Authorization. The [governing body; e.g., board otdirectors] T______ae of the Grantee has authorized me to make this Declaration and affirms its Conte
13. Binding representations . The representations made in this Declaration are binding on the Grantee.
-3- FROM :ST JORN WHANGAREI FAX No. :09 4372140 Sep. 03 2010 12:44PM P4
I declare that the foregoing is true and correct of my own knowledge.
[signature
Attac ents: • Governing documents Relevant statutory law or governing document provisions relating to dissolution • "Farm 5578 (iforganization is a school) • Schedule of Financial Support
-4- Ask
FROM :ST JOHN WHc* RRE t FAX NO. :09 4372140 Sep. 03 2010 12:44PM PS
Schedule of Financial Support
Year Year Year Year Total for four 2006 2007 2008 2Q09 years
(A) Gifts, grants, and contributions received.
(B) Membership fees received:
(C) Gross receipts from admissions , merchandise sold or se css performed, or furnishing of facilities In any actly y that is not a business unrelated to the organIzatlo " exempt purposes: (D) Gross Income from Interest, dividends , rents, and royalties:
(E) Net Inc" from business activities that are unrelated to the organization's exempt purposes: i (F) The vaI of services or facilities furnished by a govemmenial unit without charge:
(G) The total of lines (A) through (F):
(H) Line (G) minus line (C): (I) Two percent of line (H):
(J) Please attach a schedule of contributions for each donor whose support for the four-year period was greater than the amount on line (I) (a major donor), and showing the amount by which each major donor's total contributionw exceeded the amount on line (I) (excess contributions).
(K) The sum of all major donors' excess contributions is:
(L) The four-year total for line (H), minus the four-year totals of lines (D), (E), and (K) (the amount of public support) I9:
(M) Line (L) divided by the four-year total fur line (H) (the percentage of the organization's support that Is public suppbrt) Is,
^o^rn aa cam- a- i^¢^+^ .2e^PauoC c e, to P 1". (A4-z cnarlms, commission KomihanaKaupup Atawha! i m
Cert^fccate ofRegistration
The Northland Emergency Services Trust S a
Registration number. CCI0801 r a m
This is to certify that The Northland Emergency Services Trust was registered as a charltab)a entftyr under the ( arifies Act 2005 on 9 August 2007.
N r
w N
Chair CihtdExecutive Chafffin Commission Chardles Commission 0 --
03/02/2011 17:06 64-9-4374135 JW BAIN PAGE 01 f Feb .2O /1 With Compliments rx /= 001 arD Q8z-:24rs4 o fl/(v.S sovba Ya Mck' dri
4 C1A4 e d ^,,^r^l1 3o h - SGt.^^-,, plea r^nvl
Orr. ^QQ,^-v Gu,^ 1 t^P1lr„ ^•; r R u 8 1 Ph. 0064 9 457 2199 Fm 437 4126 or 437 2144 EMU: nest %grin.co.nz PO Box 8011 Whanga i, New Zcdand
* 7020218, AURV t Year Year Year Year Total for four ?,Q 2QQZ 17Q 2 . years '177g9 t3 2s1 90 0fw3.3 37 1t (A) Gifts, grants, and contributions received: 542g34.
(B) Membership fees received: (C) Gross receipts from admlssrons, men andise sold or seMCes performed, or furnishing of fsdllbee In any activity that Is not a business unrelated to the organization 's exempt purposes: (0) Gross Income from intgrbat, dividends, rents, 1-92:k 384(3 C 9e$ 516%2 .13B( and royalties: (B) Net Uroome from business activities that are unrelated to the organtietlon's exempt purposes: ,_,F) The value of services or feogities fUmished by a governmental unit without charge: 914745 3"783523. (G) The total of lines (A) through (F): 5 9$3g gari;i (33"718q 35M 3, (H) Line (0) minus line (C): 549858 X81'731 t33-718Q Qfr+1745 '78 0 (I) Two percent of line (H): ( 2997 t 9^0^^4 043 t !' '75&,"7 (J) Please attach a schedule of contributions for each donor whose support for the four-year period was greater man me amount on ime Ul to major aonor), ana snwmng me amount oy wnicn seen major aonors toles contributions exceeded the amount on line (I) (excess contributions). n1(A , (K) The sum of all major donors' excess contributions Is: A(I L.
(L) The four-year total for line (H), minus the four-year totals of lines (D), (E), and (K) (the amount of 1t02 public support) Is: 3`7 (4 'M) Line (L) dMded by the four-year total for line (H) ,-As percentage of the organlzattoh's support that is public support) Is: cc.38 OZO . • THE AOTEAROA FOUNDATION 20-1464742
FEDERAL FOOTNOTES
STATEMENT A PART VII-B, QUESTION 5(A)(4) STATUS OF GRANTEE
THE AOTEAROA FOUNDATION MADE GRANTS DURING THE YEAR ENDING DECEMBER 31, 2013 TO MIKE CORMACK FOUNDATION. BASED ON THE FOREIGN PUBLIC CHARITY EQUIVALENCE AFFIDAVIT (SEE ATTACHED), THE AOTEAROA FOUNDATION HAS MADE A GOOD FAITH DETERMINATION THAT MIKE CORMACK FOUNDATION IS THE EQUIVALENT OF A PUBLIC CHARITY DESCRIBED IN SECTION 501(C)(3) AND 509(A) OF THE CODE.
1762CE 3846 A56703 0 •
FOREIGN PUBLIC CHARITY EQUIVALENCE AFFIDAVIT OF OFFICER
The undersigned, to assist grantmaking foundations in the United States of America determine whether Mike Cormack Foundation (the "Grantee") is the equivalent of a public charity described in section 509(a)(1), (2) or (3) of the United States Internal Revenue Code or a private operating foundation described in section 4942(1)(3) of the Code, makes the following statement:
1. Office. I am a Trustee of the Grantee.
2. Formation and purposes . The Grantee was created by a Deed of Trust dated 9 May
2013, and is operated exclusively for the following purpose or purposes [check applicable box or boxes]
l charitable
q religious
q scientific
q literary
123 educational
21 fostering national or international amateur sports competition
q prevention of cruelty to children or animals
3. Programs and activities . The activities of the Grantee will include (describe past. current. and future acti%ities and operations]:
The raising of funds:
• To promote, foster and encourage the playing of the game of amateur Rugby Union for physical health and wellbeing; and, • To provide financial support to fund education , coaching and training of administrators, players and coaches of the game of Rugby Union; and, • To provide financial support for schools and clubs to promote the playing of Rugby nhycical; health and wellbeing; ands Union for as ----1
• To promote foster and encourage volunteering and sportsmanship within the Rugby Union community.
The Trust has received an initial donation of $10,000. It is currently arranging a formal luncheon to launch its activities. A copy of the invitation to that lunch with an accompanying brochure is attached.
4. Governing documents. Copies of the charter, bylaws, and other documents pursuant to which the Grantee is governed are attached.
5. No improper private benefits . The laws and customs applicable to the Grantee do not permit any of its income or assets to be distributed to, or applied for the benefit of, a private person or non-charitable organization other than: (a) pursuant to the conduct of the Grantee's charitable activities; (b) as payment of reasonable compensation for services rendered: or (c) as payment representing the fair market value of property which the Grantee has purchased.
6. No proprietary interest in Grantee. The Grantee has no shareholders or members who have a proprietary interest in its income or assets
7. Distribution of assets on dissolution . In the event that the Grantee were to be liquidated or dissolved, under the laws and customs applicable, or under the governing instruments , all its assets would be distributed to another not-for-profit organization for charitable. religious. scientific, literary, or educational purposes, or to a government instrumentality for a public purpose. A copy of the relevant statutory law or provisions in the governing instruments controlling the distribution of the organization' s assets on liquidation is attached.
Clause 11 of the Deed provides that no private pecuniary profit may be made by any person from the Trust.
Clause 18 of the Deed provides that on a winding up, the assets of the Trust are to vest in such one or more charitable bodies in New Zealand for their charitable purposes as the Trustees may decide.
-2- 0 0
8. Limits on activities. The laws and customs applicable to the Grantee do not permit the organization, other than as an insubstantial part of its activities, to (a) engage in activities that are not for religious, charitable, scientific. literary, or educational purposes; or (b) attempt to influence legislation, by propaganda or otherwise.
9. No candidate campaign activity . The laws and customs applicable to the Grantee do not permit the organization directly or indirectly to participate or intervene in any political campaign on behalf of, or in opposition to, any candidate for public office.
10. Control by other organizations. The Grantee is [choose one]:
l not controlled by or operated in connection with, any other organization
q controlled by or operated in connection with another organization or organizations as follows ]describe):
Many of those who will be initially approached to become donees are persons who were associated with Mike Cormack, after whom the Foundation is named, through his sporting interests. Amongst those interests was the Auckland University Rugby Football Club of which Mike was a life member.
The Trustees have agreed that their initial focus will be to benefit the players, administrators and coaches of the Auckland University Rugby Football Club. This may include providing scholarships in appropriate circumstances to assist promising players continue their education at Auckland University.
11. Qualification as publicly supported organization. The Grantee is [check one of the following],
O a school (that is, an educational organization which normally maintains a regular
faculty and curriculum and normally has a regularly enrolled body of pupils or students in
attendance at the place where its educational activities are regularly carried on and that
has adopted and operates pursuant to a racially nondiscriminatory policy as to students.
and has completed IRS Form 5578).
q a hospital (that is, an organization whose principal purpose or function is the providing of medical or hospital care).
q a church (that is, a church. synagogue. or mosque).
-3- E
E3 none of the above, but it satisfies a public support test as demonstrated by the
attached Schedule of Financial Support for the five most recently completed taxable
years.
The Trust has not provided any financial support to date as it has just been formed. There is a planned launch of the Mike Cormack Foundation on 17 October 2013 in Auckland when prospective donees will be approached.
12. Authorization . The Board of Trustees of the Grantee has authorized me to make this Declaration and affirms its contents.
13. Binding representations . The representations made in this Declaration are binding on the Grantee.
I declare that the foregoing is true and correct of my own knowledge.
Philip Sampson Wells
DATE: 6 Z 0 / 3
Attachments: • Governing documents including Declaration of Trust, Resolution changing name. • Correspondence from the New Zealand Inland Revenue confirming deductibility of donations in New Zealand • Correspondence from the Charities Commission (New Zealand) confirming registration of the Foundation as a Charity in New Zealand. • Relevant statutory law or governing document provisions relating to dissolution • Form 5578 (if organization is a school) • Schedule of Financial Support
-4- 9 0
Schedule of Financial Support
Year Year Year Year Year Total for five 2006 2007 2008 2009 2010 years
(A) Gifts, grants, and contributions received.
(B) Membership fees received
(C) Gross receipts from admissions, merchandise sold or services performed, or furnishing of facilities in any activity that is not a business unrelated to the organization's exempt purposes.
(D) Gross income from interest, dividends, rents, and royalties.
(E) Net income from business activities that are unrelated to the organization's exempt purposes.
(F) The value of services or facilities furnished by a governmental unit without charge.
(G) The total of lines (A) through (F)
(H) Line (G) minus line (C)
(I) Two percent of line (H)•
(J) Please attach a schedule of contributions for each donor whose support for the five-year period was greater than the amount on line (I) (a major donor), and showing the amount by which each major donor's total contributions exceeded the amount on line (I) (excess contributions)
(K) The sum of all major donors' excess contributions is.
(L) The four-year total for line (H), minus the five-year totals of lines (D), (E), and (K) (the amount of public support) is.
(M) Line (L) divided by the five-year total for line (H) (the percentage of the organization's support that is public support) is
-5- Declaration of Trust Establishing
The Mike Cormack Memorial Foundation
Leslie Gavin Cormack
Campbell Lane Cormack
Simon Hugh Johnston
John Stuart Taylor
Philip Sampson Wells
(Trustees)
Martelli McKegg lawyers S
Contents Page
1. Name of Trust...... 1 2. Definitions and interpretations ...... 1 3. Declaration of trust ...... 2 4. Charitable purposes ...... 2 5. Powers and discretions of Trustees ...... 3 6. Application of Trust Fund ...... 4 7. Trustees ...... 4 8. Management of the Trust...... 5 9. Liability and indemnity of Trustees ...... 7 10. Interested Trustee ...... 8 11. No private pecuniary profit for any individual , and exceptions ...... 8 12. Restrictions on benefits to and influence by interested persons ...... 8 13. Allocation of receipts ...... 9 14. Appointment and removal of custodian trustee ...... 9 15. Incorporation ...... 9 16. Office of the Trust ...... 9 17. Seal ...... 10 18. Winding up of Trust ...... 10 19. Alteration of terms of declaration ...... 10 20. Notice ...... 10
364341Dd130509LC3 Martelli M9Kegg • •
Deed dated 9 MCA 2013
Parties
Leslie Gavin Cormack, Campbell Lane Cormack, Simon Hugh Johnston, John Stuart Taylor and Philip Sampson Wells (Trustees).
Introduction
A. Mike Cormack was a tireless and committed worker and visionary for the Auckland University Rugby Football Club. He gave outstanding service as a player, a coach, a selector, a tour manager, a fundraiser and as an administrator.
B. In recognition of the unparalleled contribution of Mike Cormack at all levels to the Auckland University Rugby Football Club, the Trustees wish to establish a charitable trust to give effect to the charitable purposes in this deed.
Operative Provisions
1. Name of Trust
1.1 The trust created by this deed shall be known as The Mike Cormack Memorial Foundation (Trust).
Definitions and interpretations
2.1 Definitions
In this deed, unless the context otherwise requires:
charitable purposes means every purpose within New Zealand which in accordance with the law of New Zealand for the time being is charitable, whether such purpose involves the relief of poverty, the advancement of education or religion, or any other object or purpose beneficial to the community not failing under any of the preceding heads, and facilities for recreation or other leisure time and occupation that are charitable under Section 61A of the Charitable Trusts Act 1957, and shall include any trust established solely and exclusively for charitable purposes.
clause is, unless otherwise qualified, a reference to a clause of this deed.
Club means the Auckland University Rugby Football Club.
company includes a corporation or other body corporate and a body of persons (whether incorporated or not).
person and words importing a person or persons include a company, firm, organisation or trust and any state government or governmental agency.
property means any real or personal property of any kind or nature and includes any right or interest therein.
Trust means the trust established by this deed.
364341Dd7305091G Martelli McKegg • •
2. Declaration of Trust establishing The Mike Cormack Memorial Foundation
Trustees means the trustees for the time being of the Trust, whether original, additional or substituted.
Trust Fund means the sum of ten dollars and any further property which may in the future be acquired by the Trustees from any source whatever for the purposes of the Trust, the moneys and investments from time to time representing such property, and, unless inconsistent with the context, the income received from such property.
2.2 Interpretation
In this deed:
2.2.1 except as otherwise expressly provided by this deed, the powers or discretions as to the administration of the Trust or as to the distribution of the income and the capital of the Trust Fund vested in the Trustees by any clause shall not in any way be limited or restricted by the interpretation of any other clause;
2.2.2 Unless the context otherwise requires:
(a) Words importing the singular include the plural and vice versa;
(b) Words importing one gender include the other genders;
(c) Words denoting natural persons include companies;
(d) References to a statute shall be deemed to be references to that statute as from time to time amended or enacted or substituted;
2.2.3 Headings have been inserted for guidance only and shall not be deemed to form part of the context of this deed.
3. Declaration of trust
3.1 The Trustees declare and acknowledge that the Trustees shall hold the Trust Fund upon the trusts, and with and subject to the powers and discretions, contained or implied in this deed.
4. Charitable purposes
4.1 Purposes : The Trustees shall hold the Trust Fund upon trust to pay or apply in New Zealand the income and the capital of the Trust Fund to assist the Club, in any manner whatsoever in the furtherance of its charitable purposes, including without limitation:
4.1.1 To promote, foster and encourage the playing of the game of amateur Rugby Union for physical health and wellbeing;
4.1.2 To provide financial support to fund education, coaching and training of administrators , players and coaches of the game of Rugby Union;
4.1.3 To provide financial support for schools and clubs to promote the playing of Rugby Union for physical health and wellbeing;
4.1.4 To promote , foster and encourage volunteering and sports anship within community Rugby Union;
364341Ddl305o9LG Martelli McKegg 0 0
3. Declaration of Trust establishing The Mike Cormack Memorial Foundation
4.1.5 To promote, foster, encourage and develop good administration of the game of Rugby Union and leadership qualities both on and off the field in players and coaches of Rugby Union; and
4.1.6 Such other charitable objectives which the Board may from time to time identify as being in the best interests of the Club.
4.2 Means of achieving purposes : The Trustees may, in order to achieve the purposes of the Trust, in addition to all other powers vested in the Trustees undertake such activities and enterprises as may be necessary or desirable including to:
4.2.1 Seek, raise , accept and receive subscriptions, donations, grants , subsidies , gifts, legacies, loans and bequests in money, in kind or partly in both;
4.2.2 Develop internal processes to identify persons or entities eligible for grants or financial assistance;
4.2.3 Make grants and provide financial assistance to eligible persons or entities;
4.2.4 Establish programmes for the assistance of eligible persons or entities;
4.2.5 Acquire, hold, convert, lay out, improve, establish, and maintain any premises of whatever nature or tenure;
4.2.6 Acquire, modify, improve, lease , distribute, or use in anyway plant, equipment, goods, and material of any nature;
4.2.7 Subsidise, encourage, and co-operate with any other person. organisation , or group (whether incorporated or not) sharing similar charitable objects as the Trust;
4.2.8 Undertake such other activities and enterprises as the Trustees may decide will further the purposes of the Trust
5. Powers and discretion of Trustees
5.1 Powers: To achieve the objects of the Trust the Trustees shall have in the administration, management and investment of the Trust Fund all the rights, powers and privileges of a natural person, and, subject always to the trusts imposed by this deed, may deal with the Trust Fund as if the Trustees were the absolute owners of and beneficially entitled to the Trust Fund, and accordingly, in addition to any specific powers vested in the Trustees by law, in dealing with the Trust Fund or acting as Trustees of the Trust the Trustees may do any act or thing or procure the doing of any act or thing or enter into any obligation whatever, including, without limitation, exercising unrestricted powers to borrow and raise money, and to give mortgages, other securities and guarantees.
5.2 Discretions: Except as otherwise expressly provided by this deed, the Trustees may exercise all the powers and discretions vested in the Trustees by this deed in the absolute and uncontrolled discretion of the Trustees, at such time or times, upon such terms and conditions, and in such manner as the Trustees may decide.
5.3 Investment: In exercising their powers of investment the Trustees may acquire any property, or retain or deal with any property which from time to time co rises the whole or, part of the Trust Fund, notwithstanding that any act or omission by the tees in the
364341Dd130509LG Martelli Meg • •
4. Declaration of Trust establishing The Mike Cormack Memorial Foundation
exercise of those powers and discretions would be, or could be, contrary to the principles governing the investment of trust funds set out in the Trustee Act 1956, This clause expresses a "contrary intention" for the purposes of Section 130 of that Act.
6. Application of Trust Fund
6.1 The Trustees:
6.1.1 May, in any one year, use or apply, or decide not to use or apply, the income of the Trust Fund for all or any of the purposes of the Trust;
6.1.2 May, in any one year, use or apply any capital of the Trust Fund for all or any of the purposes of the Trust without first using or applying the whole or any portion of the income of the Trust Fund for that year;
6.1.3 May, in any one year, set aside reserves or accumulations for future use or application.
Trustees
7.1 Signatories to be first Trustees : The persons named in this deed as Trustees shall be the first Trustees of the Trust.
7.2 Number of Trustees: The number of Trustees shall not be less than three and not more than seven. Should a vacancy reduce the number of Trustees below three, the vacancy shall be filled as soon as practicable in accordance with the terms of this deed.
7.3 Cessation of office of Trustees : Any person shall cease to be a Trustee if he or she:
7.3.1 Resigns as a Trustee in accordance with this deed; or
7.3.2 Fails or neglects to attend three consecutive meetings of-the Trustees without leave of absence, unless it appears to the other Trustees at their first meeting after the last of such absences that there is a proper reason in each instance for such non- attendance; or
7.3.3 Becomes of unsound mind or becomes a person in respect of whose affairs an order under the Protection of Personal and Property Rights Act 1988 is made, or otherwise becomes unfit or unable to act as a Trustee; or
7.3.4 Becomes insolvent or commits an act of bankruptcy; or
7.3.5 Dies; or
7.3.6 Is removed from office by the other Trustees in accordance with the terms of this deed.
The Trustee concerned shall cease to hold office in a case where sub-paragraph 7.3.2 applies from the date of the first meeting of Trustees after that Trustee's third consecutive absence without leave, and in cases where sub-paragraphs7.3.3, 7.3.4, 7.3.5 and 7.3.6 apply from the date of the event mentioned.
36434- 1Dd1305o9L0 Martell! M^Kegg 0 0
5. Declaration of Trust establishing The Mike Cormack Memorial Foundation
7.4 Resignation of Trustee: A Trustee may resign by giving not less than thirty days (or such shorter period of notice as the Trustees may accept) notice in writing to the other Trustees or to the Secretary of the Trust. Upon the expiry of such notice the Trustee so resigning shall cease to be a Trustee of the Trust, except as to the acts and deeds necessary for the proper vesting of the Trust Fund in the continuing or new Trustees, which acts and deeds shall be done and executed at the expense of the Trust Fund.
7.5 Removal of Trustee: Notwithstanding anything contained or implied in this deed, a Trustee may at any time be removed as a Trustee of the Trust by a resolution of three- quarters in number of all the other Trustees, if in the opinion of the other Trustees the continuation in office of the Trustee so removed shall not be in the best Interests of the Trust.
7.6 Effect of removal of Trustee: Upon the removal of a Trustee from office, that person so removed shall cease to be a Trustee of the Trust, except as to the acts and deeds necessary for the proper vesting of the Trust Fund in the remaining Trustees which acts and deeds shall be done and executed at the expense of the Trust Fund.
7.7 Appointment of Trustee: The power of appointment of a new or additional Trustee shall be vested in the Trustees who shall make any appointment by a resolution of Trustees passed by not less than three-quarters in number of all the Trustees in office.
7.8 Advisory Trustee : An Advisory Trustee may be appointed and removed in the same manner as a Trustee.
Management of the Trust
8.1 General:
8.1.1 The Trustees shall have the absolute management and entire control of the Trust Fund.
8.1.2 The Trustees may from time to time appoint, remunerate and dismiss officers or employees of the Trust.
8.1.3 Any individual, whether or not a Trustee, maybe appointed as an officer or employee of the Trust.
8.2 Meetings:
8.2.1 The Trustees shall meet to conduct business at such intervals as the Trustees may decide. The Trustees may invite to such meeting whatever other person or persons as the Trustees may decide will assist with their deliberations.
8.2.2 Except as expressly provided otherwise by this deed any matter requiring decision at a meeting of the Trustees shall be decided by a simple majority of the Trustees personally present and voting on the matter.
8.2.3 In the event of an equality of votes the Chairperson shall have a second or casting vote.
8.2.4 Except as expressly provided otherwise by this deed a resolution in writing signed 'I by all the Trustees shall be as valid and effectual as if it had Ll%en passed at a jrn/^ (,C.
38434- 1Dd13f?5o8LG M rtelli McKe99 0 0
6. Declaration of Trust establishing The Mike Cormack Memorial Foundation
meeting of the Trustees duly convened and constituted. Any such resolution may consist of several like documents each signed by one or more Trustees. Any such document sent by a Trustee by facsimile or email shall be deemed to have been duly signed by that Trustee.
8.2.5 Any Trustee may at any time give notice convening a meeting of the Trustees. Such notice shall be given by letter posted to each Trustee then within New Zealand at least fourteen days before the date of the proposed meeting. The notice shall state the time and place of the meeting and, in sufficient terms, the nature of the business to be transacted.
8.2.6 The quorum for a meeting of Trustees shall be a majority of the Trustees then holding office.
8.2.7 The contemporaneous linking together of the Trustees by telephone or other electronic means of communication (telephone) shall constitute a meeting of the Trustees and the provisions of this clause as to meetings of the Trustees shall apply to such meetings provided the following conditions are met:
(a) Each Trustee then in New Zealand shall be entitled to notice of such a meeting by telephone and to be linked by telephone for the purposes of the meeting;
(b) Each of the Trustees taking part in the meeting by telephone must be able to hear each of the other Trustees taking part during the whole of the meeting;
(c) At the commencement and conclusion of such meeting each Trustee must acknowledge the presence of that Trustee for the purpose of a meeting of the Trustees being held;
(d) A Trustee may not withdraw from such a meeting unless that Trustee has previously obtained the express consent of the Chairperson of the meeting to do so;
(e) A Trustee shall be conclusively presumed to have been present and to have formed part of the quorum of such a meeting at all times during the meeting by telephone unless that Trustee has previously obtained the express consent of the Chairperson to withdraw from such a meeting.
A minute of the proceedings of any such meeting by telephone shall be sufficient evidence of such proceedings and of the observance of all necessary formalities if certified to be a correct minute by the Chairperson of the meeting.
8.3 Chairperson and Deputy Chairperson:
8.3.1 The Trustees shall elect one Trustee to act as Chairperson, either from year to year, or for such period as the Trustees may decide.
8.3.2 The Trustees may also appoint one Trustee to act as Deputy Chairperson either as. the need arises or from year to year or for such term of years as the Trustees may decide. In the absence of the Chairperson the Deputy Chairperson shall have and may exercise all the powers of, and shall perform all the dull , of the Chairperson.
36434-1Dd130508LG M ell' M^Kegg 0 0
7. Declaration of Trust establishing The Mike Cormack Memorial Foundation
8.4 Secretary: The Trustees may appoint a Secretary who may be honorary, or may be a full- time or part-time employee of the Trust.
8.5 Treasurer. The Trustees may appoint a Treasurer who may be honorary, or may be a full- time or part-time employee of the Trust.
8.6 Minutes : Minutes of the proceedings of all meetings of the Trustees shall be recorded in a book to be kept for that purpose by the Secretary and shall be signed by the Chairperson of the meeting at which the minutes are confirmed. Every such minute purporting to be so signed shall be prima facie evidence of the matters recorded. If the Trust does not have a secretary at any time, the Chairperson may nominate any person whether or not a Trustee to keep minutes.
8.7 Delegation of Powers:
8.7.1 The Trustees may delegate to any person or committee, whether or not a Trustee of Trustees, such of the powers of the Trustees as the Trustees may decide;
8.7.2 Any person or committee acting under delegated power shall act in accordance with the terms of this deed and, in the absence of proof to the contrary, shall also be presumed to be acting within the terms of the delegation;
8.7.3 The Trustees may revoke wholly or partly any delegation of the powers of the Trustees at any time;
8.7.4 Subject to any directions given by the Trustees, any person or committee to which any powers of the Trustees have been delegated may conduct that person's or the committee's affairs as that person or the committee may decide;
8.7.5 The Trustees may, in delegating the powers of the Trustees, provide restrictions or rules by or within which such delegated powers are to be exercised.
8.8 Bank account: The Trustees shall keep an account or accounts at such bank or banks as the Trustee may decide. Cheques, withdrawals and authorities shall be signed or endorsed, as the case may be, by such person or persons (including in all instances at least one Trustee) as the Trustees may decide.
8.9 Accounts and audit: The Trustees shall cause true accounts for each year to be kept in such manner as the Trustees may decide of all receipts, credits, payments, assets and liabilities of the Trust Fund and all such other matters necessary for showing the true state and condition of the Trust. The accounts of the Trust may, at the Trustees' discretion, be audited once in each year by a chartered accountant (not being a Trustee) appointed In that capacity by the Trustees.
9. Liability and Indemnity of Trustees
9.1 No liability of Trustees, with exceptions : No Trustee or former Trustee or officer of any Trustee or former Trustee shall be liable for any loss to the Trust Fund not attributable to that Trustee's or officer's own dishonesty, or to the wilful commission or omission by that Trustee or officer of an act known by that Trustee or officer to be a breach of trust. No Trustee shall be bound to take any proceedings against a co-trustee or former Trustee for any breach or alleged breach of trust committed by such co-truste r former Trustee or any officer of any co-Trustee or former Trustee.
36434- 1Dd13o5o9LG M rteIIi M9 gg 0 0
8. Declaration of Trust establishing The Mike Cormack Memorial Foundation
g.2 indemnity of Trustees : Each Trustee or former Trustee or officer of any Trustee or former Trustee shall be entitled to a full and complete indemnity from the Trust Fund for any personal liability which that Trustee, former Trustee or officer may incur in any way arising from or in connection with that Trustee, former Trustee or officer acting or purporting to act as a Trustee of the Trust, provided such liability is not attributable to that Trustee's or officer's own dishonesty, or to the wilful commission or omission by that Trustee or officer of an act known by that Trustee or officer to be a breach of trust.
10. Interested Trustee
10.1 Any Trustee who is or may be in any other capacity whatever interested or concerned directly or indirectly in any property or undertaking in which the Trust is or may be in any way concerned or involved shall disclose the nature and extent of that Trustee's interest to the other Trustees, and shall not take any part whatever in any deliberations of the Trustees concerning any matter in which that Trustee is or may be interested other than as a Trustee of the Trust.
11. No private pecuniary profit for any individual, and exceptions
11.1 No private pecuniary profit: No private pecuniary profit may be made by any person from the Trust, except that:
11.1.1 Any Trustee may receive full reimbursement for all expenses properly incurred by that Trustee in connection with the affairs of the Trust;
11.1.2 The Trust may pay reasonable remuneration to any officer or servant of the Trust (whether a Trustee or not) In return for services actually rendered to the Trust;
11.1.3 Any Trustee may be paid all usual professional, business or trade charges for services rendered, time expended and all acts done by that Trustee or by any firm or entity of which that Trustee is a member, employee or associate in connection with the affairs of the Trust;
11.1.4 Any Trustee may retain any remuneration property payable to that Trustee by any company or undertaking with which the Trust may be in any way concerned or involved for which that Trustee has acted in any capacity whatever, notwithstanding that the Trustee's connection with the company or undertaking is in any way attributable to that Trustee's connection with the Trust.
11.2 Trustees to comply with restrictions: The Trustees, in determining all reimbursements, remuneration and charges payable in the terms of this clause, shall ensure that the restrictions imposed by the following clause are strictly observed.
12. Restrictions on benefits to and influence by interested persons
12.1 Recipient not to influence benefits : Notwithstanding anything contained or implied in this deed, any person who is:
12.1.1 A settlor or Trustee of the Trust; or
12.1.2 A shareholder or director of any company carrying on any business of the Trust; or
1 G^-
36434- 1od13o5o9LG Martelli McKegg 0
9. Declaration of Trust establishing The Mike Commack Memorial Foundation
12.1.3 A senior or trustee of any trust which is a shareholder of any company carrying on business of the Trust; or
12.1.4 An associated person (as defined by the Income Tax Act 2007) of any such settlor, trustee, shareholder or director
shall not by virtue of that capacity in any way (whether directly or indirectly) determine, or materially influence in any way the determination of the nature or the amount of any benefit or advantage or income or the circumstances in which it is or is to be received, gained, achieved, afforded or derived by that person.
12.2 Professional account and Influence: A person who in the course of and as part of the carrying on of his or her business of a professional public practice shall not, by reason only of his or her rendering professional services to the Trust or to any company by which any business of the Trust is carried on, be in breach of the terms of this clause.
13. Allocation of receipts
13.1 Allocation of payments between capital and income: If any dividend or distribution is received which in the opinion of the Trustees has been paid or made out of profits other than trading profits of the financial year in respect of which the dividend or distribution has been paid or made, the Trustees may decide how much of that dividend or distribution ought to be treated as capital and how much as income of the Trust Fund. Such decision shall be made by the Trustees after considering the nature of the profit used to pay or make the dividend or distribution, and the account to which the dividend or distribution has been debited in the books of the person making such payment or distribution. The Trustees shall not be liable to any person in respect of the payment of any moneys in accordance with any decision made by the Trustees under this clause.
13.2 No apportionment In respect of date of payment: There shall be no apportionment as between capital and income of the Trust Fund of rents, interest, dividends, or other periodic payments for the period current to the date of commencement of the Trust or for any other period current at the date upon which any interest created under the terms of this deed commences or determines.
14. Appointment and removal of custodian trustee
14.1 The Trustees may at any time by deed appoint any appropriate corporation to be the custodian trustee of the Trust Fund, or any part of the Trust Fund, upon such terms as the Trustees may decide, or otherwise to act pursuant to the provisions of Section 50 of the Trustee Act 1956, and the Trustees may at any time by deed revoke any such appointment.
15. Incorporation
15.1 The Trustees may at any time apply for incorporation under Part 11 of the Charitable Trusts Act 1957 under the name The Mike Cormack Memorial Foundation or such other name as the Trustees may decide. Upon incorporation the powers and discretions conferred upon the Trustees by law or by this deed shall be conferred upon the Trustees as a trust board.
16. Office of the Trust
16.1 The office of the Trust shall be at such place as the Trustees fr m time to time may deci . IA 36,, ,N130509I.G Martelli M,Kegg • C7
10. Declaration of Trust establishing The Mike Cormack Memorial Foundation
1 I7. beau
17.1 Upon incorporation under the Charitable Trusts Act 1957 the Trust shall have a common seal which shall be affixed by the authority of the Trustees previously given to any document requiring execution by the Trustees. Every such affixing shall be attested by two Trustees and shall be sufficient evidence of authority to affix the seal.
17.2 No person dealing with the Trustees shall be bound or concerned to see or inquire as to the authority to affix the seal, or to inquire as to the authority under which any document was sealed or in whose presence it was sealed.
18. Winding up of Trust
18.1 If at any time the Trustees decide that for any reason it is no longer practicable or desirable to carry out the purposes of the Trust then the Trustees may, by a resolution decide to wind up the Trust and to vest the assets of the Trust in such one or more charitable bodies in New Zealand for their charitable purposes in such manner, upon such terms, and in such proportions as the Trustees may decide, provided that if the Trust is then incorporated under the Charitable Trusts Act 1957 the assets of the Trust shall be disposed of in accordance with the provisions of that Act
19. Alteration of terms of declaration
19.1 The Trustees may, by a resolution passed by not less than three-quarters in number of all the Trustees in office revoke, vary, or add to any of the provisions of this deed, provided such revocation, variation, or addition is consistent with the charitable purposes of the Trust.
20. Notice
20.1 Any notice to be given to the Trust may be given in writing by:
20.1.1 Delivering or posting a copy to the registered office of the Trust; or
20.1.2 Delivering a copy to the Chairperson or Secretary of the Trust.
Executed as a deed GL
364341Dtl13009LG Martelli McKegg 11. Declaration of Trust establishing The Mike Cormack Memorial F
Signed by i esiie Gavin Cormack in the presence of Vv
Leslie Gavin Cormack
wro,ass sign
GlJA Cj el-Z44!ZI)
Print name
Occupation
/45LU r- ,-- (-,I AID
Address
Signed by Campbell Lane Connack in the presence of:
Campbell Lane Cormack f
Witness sign
WARREN DOUGLAS BYOPJVE AUCICL,gND Prim name
Ocsupatbn
Address
36434-1 130 3o5o9LG Martelli McKegg 0 0
12. Declaration of Trust establishing The Mike Cormack Memorial Foundation
Signed by Simon Hugh Johnston in the presence of
Simon Hugh
Witness sign KT Keam Solicitor Auckilkilt-d Print name
Occupation
Address
Signed by John Stuart Taylor in the presence of.
-K^
Witrress sign
Print name Jarred PRScott At^d^and
Occupation
Address
36434-1Dd130509LG Martefli M9Kegg 13. Declaration of Trust establishing The Mike Cormack Memorial Foundation
Signed by Philip Sampson Wells in the presence of:
Philip Sampson Wells
Whreu sign
Prlnt name
f 7t-/G/ 702
Occupation
Jg1i+ Ck' (.
Address
36434.1Dd130509LG Martelli M9Kegg • C
The Mike Cormack Memorial Foundation (Trust)
Trustee Resolution
made the 1k day of 2013 a74-^ Resolved
1. That the Trustees change the name of the Trust to the Mike Cormack Foundation, in exercise of the powers of amendment set out at clause 19 of the Declaration of Trust dated 9 May 2013 (Trust Deed).
2. That the Trustees correct typographical errors In the Trust Deed as follows:
2.1 Clause 5.3 shall be amended to read:
Investment: In exercising their powers of investment, the Trustees may acquire any property, or retain or deal with any property which from time to time comprises the whole or part of the Trust Fund, notwithstanding that any act or omission by the Trustees in the exercise of those powers and discretion would be, or could be, contrary to the principles governing the investment of trust funds set out in the Trustee Act 1956. This clause expresses a 'contrary intention" for the purposes of Section 13D of that Act.
2.2 Clause 15.1 shall be amended to read:
The Trustees may at any time apply for incorporation under Part 2 of the Charitable Trusts Act 1957 under the name Mike Cormack Foundation or such other name as the Trustees may decide. Upon incorporation, the powers and discretion conferred upon the Trustees by law or by this deed shall be conferred upon the Trustees as a trust board.
3. That the Trustees open a bank account in the name of the Mike Cormack Foundation with ANZ National Bank Limited.
4. That the Trustees do all things and sign all documents as may reasonably be required to give effect to the resolutions at paragraphs 1-3 (inclusive) above. I --I
Pswals
(being all of the Trustees)
38434-11R13o LG 0 •
Inland Revenue Inland Revenue PO Box 39010 Te Tari Taake Wellington Mail Centre Lower Hutt 5045
23 August 2013 3 1 183 Telephone 0800 377 774
THEE i IKE CORMACK MCI•IORIAL FOUNDA J01V PO Box 5745 IRD Number 112-191-038 Auckland 1141
2 12 e!.r2 Lt ^^i
Dear Sir/Madam
Donee organisation status
Your charitable organisation was recently registered by the Charities Commission and indicated in its application that it will receive donations.
I advise that your organisation meets the qualifying criteria under Section LD 3 of the Income Tax Act 2007. This means that individuals can claim a donation tax credit and Maori Authorities and certain companies can claim a deduction for donations to your organisation.
The tax credit and deductions are allowable under the following provisions effective from 1 April 2008:
• Section LD 1 of the Income Tax Act 2007
An individual can claim a tax credit for income tax purposes for cash donations of $5 or more made to your organisation. The overall maximum tax credit allowable is:
• a sum equal to a third of the aggregate of all donations made by the individual, up to their annual taxable income.
To qualify for the tax credit the individual must produce a receipt from your organisation that:
• is officially stamped with the name of your organisation • shows the date the donation was received • is signed by a person in your organisation authorised to accept donations.
• Section DB 41 of the Income Tax Act 2007
A company can claim a deduction for donations of money made to your organisation.
The deduction available to the company for donations made to all charitable organisations in that income year can't exceed the amount that would be the company's net income in the corresponding tax year.
• Section DV 12 of the Income Tax Act 2007
A Maori Authority can claim a deduction for donations of money made to your organisation.
The deduction available to the Maori Authority for donations made to all charitable organisations in that income year can't exceed the amount that would be the Maori Authority's net income in the corresponding tax year.
www.ird.govt.nz Page 1 of 2 1N032 Inland Revenue Te Tarl Taake
Note : Donee status doesn't imply any form of income tax exemption or donors' relief from gift 01184 duty. Gift duty only applies to gifts made before 1 October 2011.
Tax credit or deduction limited to New Zealand case
A tax credit or deduction will only apply where funds are used by your organisation for charitable, benevolent, philanthropic or cultural purposes wholly or principally within New Zealand.
If you use funds for those purposes outside New Zealand, you're required to maintain a separate account that clearly identifies those funds.
Record keeping
Your organisation must keep all records for seven years. They must be in English, unless approval has been given to use another language.
Your organisation must also keep records showing:
• the source of donations received, and • how its funds have been used, whether in New Zealand or overseas.
For further enquiries please visit our website www.ird.govt .nz or call us on 0800 377 774
Yours faithfully Rebekah Davenport
Customer Service Specialist -Transactional
www.ird.govt. n z Page 2 of 2 1N032 • • Inland Revenue Inland Revenue Te Tan Taake PO Box 39010 )0028 Wellington Mail Centre Lower Hutt 5045 26 August 2013 www.ird.govt.nz
THE MIKE CORMACK MEMORIAL FOUNDATION Telephone 0800 377 774 PO Box 5745 Auckland 1141 IRD Number 112-191-038
L .^ I
Dear Sir/Madam
Your new Inland Revenue (IRD) number is 112-191-038.
Our records show your commencement date as 9 May 2013.
If any of these details are incorrect, please phone us as soon as possible on 0800 377 774, and we will change them.
Please keep this letter in a safe place . You will need to quote your IRD number when you phone us.
Yours faithfully Eleanor young
Manager, Inland Revenue
www.ird.govtnz 0 0
From : Charities Commission
CHARITIES 85 The Terrace, Wellington 6143 P.O. Box 30-112, Lower Hutt 5040 New Zealand Fax +64 4 978 7794 Freephone 0508 242 748 Website \\-\\ \/ ella gov t ni wvti \\ .ch at il lc. 'Ltu\ t ni 15 August 2013
Dear Lisa Gerrard
Re: Registration of The Mike Cormack Memorial Foundation
I am pleased to advise you of the success of your application to register The Mike Cormack Memorial Foundation as a charitable entity. Your official Registration Number is CC49468.
Details about The Mike Commack Memorial Foundation will soon be available on the Charities Register at \\ %% %N chantlc" ut1\ t ni.
Proof of registration can be obtained by visiting our website and performing a search of the charities name or registration number.
Registration with Charities means you need to:
• send an Annual Return to Charites each year (see the attached fact sheet). Your first Annual Return is due before 30 September 2014.
• notify Charities of changes to the name, address for service. balance date, rules, purposes or officers no later than three months after the effective date of the change. You may use the Notice of Change form (enclosed). We will then need to check that the changes made do not affect your registration status.
For further guidance or information, please contact us on our free information line 0508 242 748 or email inti(ra -chariucs.^_u%I.ni .
Yours sincerely,
John Currie Manager, Registration 0 0
Thefolloti+ •ing information may be helpful:
Annual Returns hn ,•- +„+ u t hon rr ,ec.(,' Notification of Change her a +, i+ c liar iric•, ''o t ,t_!rr+'+rvrnfo r n,rr rrc^rr she r.S +rlr^u ru-r10-11 hrrr-1 ow II I -11m 4c S-e halm-'es Tax and donee status lr fp i:,, it „ rhrrr'rrc ',_ !c r rr=, ; r^ '+, • rrrl„rmur ;o,r_,Irt,rt cloner-.,tunLy IRD Tax information sheet lr rlp ; +r+, ,+' rr c> Vic„ 1 n-- ,'c hrn trcrhlh'-m',',utrsutu,,;s-c lrar-t- ur,'-ntlru; . . T- - -- - ,, ------. `. . ^: .; t j ^ ^`^St. ^ ^- ti -^c^-^^ ^^ ^,^ ^ Mike Cormack was not only an outstanding PLEASE ENTER YOUR DETAILS AND RETURN VIA MAIL. senior and representative player, he was Name also a tireless and committed worker and visionary for the Auckland University Rugby Postal address FOUNDING TRUSTEES OF THE FOUNDATION ARE: Football Club. He gave outstanding service as Campbell Cormack. Gavin Cormack, Postal Code: a player, a coach, a selector, a tour manager, Simon Johnston, John Taylor and Philip Wells, a fund raiser and as an administrator. eMail. DONATIONS As a result, the Mike Cormack Foundation is Phone number ( ) being established to help ensure the ongoing Donations in Mikes memory are warmly sustainability of the Club he cherished. invited in any one of the following levels. DONATION: Founders I/We commit to a total payment of $ Commitments $100,000 or over THE OBJECTS AND PURPOSES OF C7 Directors Signature THIS FOUNDATION ARE: I Commitments $20,000 or over All levels of donation will be gratefully received. • To foster encourage the promote, and Fellows Those who give, in total , more Ihan $100,000 will be playing of rugby Commitments $10,000 or over recorded as Founders ; more than $20,000, as Directors, Members more than $10,000, as Fellows and more than $5,000. as • To provide financial support to fund Commitments or over. Members of the Foundation education , coaching and training of $5,000 PAYMENT(S): please tick one administrators , players and coaches Other donations are welcome One payment • To provide financial support to enable These commitments can be made in a lump Annually - Number of years. months schools and clubs to promote the sum or in instalments over a defined period. Monthly - Number of playing of rugby PAYMENT METHOD: Please tick one. BENEFITS WILL INCLUDE: a Direct Credit or Automatic Payment to- • To promote, foster and encourage • As the MCF is a registered charity Mike Cormack Foundation Account volunteering and sportsmanship (CC49468) all monetary donations will Bank- ANZ Bank NZ Limited Branch. 45 Lower Queen St, Auckland • To promote , foster and encourage and receive a receipt entitling the donor to a Account 06-0323-0109561-00 NZ Income tax rebate develop good administration of the game Swift address- ANZI3NZ22 and leadership qualities both on and off • Recognition of these donations will be Reference : First name and Surname through the various communications the field in players and coaches Q Cheque - Complete and mail to: of the MCF. Anonymity will be adhered Philip Wells, • Such other charitable objectives as the to if desired Martelli McKegg, PO Box 5745 identify Trustees may from time to time • An annual written report on the activities Auckland 1141 as being in the interests of the Club. of the MCF PSW@martellimckegg co.nz • Promotional events to celebrate the Please advise to whom the receipt should be made. activities of the MCF. if this differs from the above details For further information, please contact - A receipt will be sent with the Charitable Registered ca [email protected] Number details for NZ Tax purposes • 0 AOTFAR(1A FOUNDATION l J V 1 Ll al \ V 1 a 1 V V 1 \ L/ L V 101 Park A\enue Ne%x York. NY 10178 (212) 984-5700 (212) 984-2454 (Fax) September 12. 2013 Mr Philip Wells Trustee Mike Cormack Foundation c, o Martelli McKegg PO Box 5745 Auckland 1141 New Zealand Dear Mr. Wells. The Aotearoa Foundation (the "Foundation") is pleased to inform you that the ylike Cormaek Foundation ("MCF") has been awarded a grant in the amount of NZD 5300.000 00 The time period for this grant is September I. 2013 through August 31. 2018 The initial pa) ment of this grant k\ ill be paid upon our receipt of confirmation of the specific project to be funded for the upcoming year along'\ith a project budget. Please see Attachment 11 for the complete Payment and Reporting Schedule. [his grant is given in support of MCF's mission to support specific activities which will benefit the Uni\ersity of Auckland Amateur Ru^,bv Football Club The grant may not be used for any of the following purposes to Carr` on propaganda , to attempt to influence legislation or the outcome of an\ specific public election : to carry on directly or indirectly . any \ oter registration drt\ e: to make grants to indt\ iduals or to other organizations \\hich do not comply \\ ith the requirements of section 4945(d)(3) or (4) of the Internal Revenue Code of 1986. as amended . or undertake am acts., ities for a non- charitable purpose Please see Attachment I for the schedule of previously agreed upon Objectives Under the applicable laws of the U.S.. all grant funds must be expended for charitable. scientific. literary or educational purposes The grant is made only for the purposes stated in this letter and the principal amount of the grant. as well as any interest or gains earned thereon. may not be expended for an other purpose without the Foundation's prior approval in a riting. Any portion of the grant not expended or committed by your organization for the purposes of the grant must be returned to the Foundation. 0 0 MCF agrees to provide annual narrati\ a and financial reports on the use of the grant to the Foundation . Each iepoit should include a narrati ve account of what `.''as accomplished by the expenditure of grant funds ( including a description of progress made towards achieving the goals of the grant ). a financial statement as described below. and copies of an% publications resulting from the grant . The financial statement should be attested by the responsible financial officer of'\4CF or a certified public accountant on behalf of MCF Although the grant funds need not be physically segregated. such funds should be sho«n separately on your books for case of reference and verification Records of receipts and expenditures under the grant. as well as copies of reports submitted to the Foundation, should be kept for at least four years folloA ing completion of such receipts and expenditures. Your books and records are to be made a%ailable for the Foundation's inspection at reasonable times The foregoing conditions comply .tiith obligations under U S lam to make reasonable efforts and establish adequate procedures to see that grant funds are spent solely for the purposes of which they were granted. Changes in la%^ s. or in regulations or other guidance interpreting them. may require the Foundation to ask that more detailed reports be submitted or that other steps be taken. The Foundation will promptly inform you of an} such changes In case of a material change in the organizational leadership of MC F. the Foundation reser\ es the right to suspend grant pa\ ments until it. in its sole discretion. is satisfied that the successor of any keN. personnel has comparable quality and commitment and is like], to he an effective replacement Without limiting the foregoing, the Founding Trustees of MCF' Campbell Cormack. Gavin Cormack, Simon Johnston. John Taylor and Philip Wells. shall be deemed to be key personnel for purposes of this section. The terms of the agreement in this letter will he go%,erned b,, the la\}s of the United States and the State of N'e" York and may at the option of the Foundation be enforced in the State of New York If this letter correctly sets forth sour understanding of the arrangements made regarding this grant. will you please countersign and return the attached copy of this letter to the Aotearoa Foundation. 101 Park A\ enue . 2 1" Floor. Nevi York. NY 10178. Sincerely, John Hood t Trustee • • Attachment 1: Objectives ,4oiearoa Foundation Grant to the Mike C'orinuck Foundation Grant Amount : NZD 5300.000 Grant Period : September 1. 2013 - August 31. 2018 Grant Purpose : Support of MCF's mission to support specific activities to benefit the Uni,.ersitv of Auckland Amateur Rugby Football Club • Promote. foster and encourage the playing of rugby • Provide financial support to fund education. coaching and training of administrators. pla} ers and coaches • Provide financial support to enable schools and clubs to promote the playing of nigbv • Promote. foster and encourage ^ olunteerina and sportsmanship • Promote. foster and encourage and develop good administration of the game and leadership qualities both on and off the field in players and coaches • Such other charitable objectives as the Trustees ma-, from time to time identify as being in the interests of the Club 4 0 0 Attachment HI: Payment & Reporting Schedule .4otearoa Foundation Gi an! to the Mike Cormack Foundation Report Due Date Disbursement Disbursement Requirements Date Amount (NZD) , • Submission of proposed project December 1. December 31. $60.000 for funding along with project 2013 2013 budget • Submission of proposed project December 1. December 31. $60.000 for funding along xx ith project 2014 2014 budget • Submission and satisfactory re-,ie\N of interim progress report • Submission of proposed project December 1, December 3 1. S60.000 for funding along with project 2015 2015 budget • Submission and satisfactory reviev\ of interim progress report • Submission of proposed project December 1. December 31. $60.000 for funding along vith project 2016 2016 budget • Submission and satisfactor\ review of interim progress report • Submission of proposed project December I, December 31. $60.000 for funding along with project 2017 2017 budget • Submission and satisfactor rex iew of interim progress report it September 30. N/A N/A • Submission and satisfactor,, 2018 re\ iew of final progress report We acknowledge that we have received a Lup\ of thi s agreement :1hc terms and conditions set forth herein are acceptable to us and x,.e Aill compl y with them. GRANTEE: Mike Cormack Foundation BN: Name- i Title. Date. 3 0 0 MIKE CORMACK FOUNDATION Grant Application Form Please complete form in full. Mail form with appropriate paperwork to: Mike Cormack Foundation , c/- Philip Wells,Martelli McKegg PO Box 5745, Auckland 1141 APPLICANT DETAILS Name of organisation : Auckland University Rugby Football Club Incorporated Type of Organisation : Rugby Sporting Club Incorporated Number: 221717 GST Number: 21-618-087 Postal Address : Auckland University Rugby Football Club, 71-73 Merton Road Glen Innes, P 0 Box 18 213, Glen Innes Postcode: 1072 Telephone: 95280688 Email: info0p-aurtc.co nz CONTACT PERSON FOR APPLICATION ENQUIRIES Contact Person : Chris Seagar Position in Club: Chair: Revenue Committee Personal address : 5 Pukeora Avenue, Remuera, Auckland Postcode: 1050 Telephone : 021 276 0082 Email: chriss (upseagars co nz What is the funding to be used for? ( please be specific ) 1. To fund a Club Administrator's role (employee Leonie Crick) 2. To fund coaching courses and coaching support for six coaches. 3. To upgrade player faciuties in Clubrooms to accommodate increased junior membership 4. To construct new Club Administrators Office In Clubrooms Amount requested : $ 60,000 GST Exclusive Costs breakdown: Supplier Details of items Qty Cost 1 Employment contract - Leonia Crick $32,500 2. Assistance to team coaches and managers for upskilling, airfares to IRANZ coaching course, reimbursement of team related expenses for Premier, Reserves, Under 21 and Under 20 teams $5,000 3. Access NZ (2005) Ltd: Renovating ablutions and changing areas $15,500 4 Access NZ (2005) Ltd: Constructina/linma new Manaaer's office including fees/consents $7.000 Total Cost $ $60,000 Has the applicant applied for funds for the same purpose from any other source? xx / NO CHECKLIST - HAVE YOU REMEMBERED EVERYTHING? I Copies of 2 quotes for items not older than 3 months If applying for salary please provide job description and signed contract 4 A resolution from the Board minutes that authorises you to apply to MCF A pre-printed bank deposit slip A certificate of Incorporation 4 A copy of your latest audited accounts -11 Have you kept a copy of this application for your records? • • CONSENT TO AUDIT We agree to comply with a request from the MCF for additional information in relation to the receipt and use of monies received from the grant. We agree that the audit will be carried out in a manner within the timeframe as specified by the MCF. CERTIFICATION BY TWO OFFICERS OF THE APPLICANT ORGANISATION I certify that all details entered in this application are true and correct to the best of my knowledge and I have the authority to make this application and give the consent to audit on behalf of the applicant. 1. Officer Name: Chris Seagar Position in Organisation: Chair - Revenue Committee Signature Date : 24/11/2013 2. Officer Name: Position in Organisati Chairman of Management Board Signature Date : 24/1112013 DETAILS OF FUNDING^4PI LYING FOR: Please complete all sections in full The following lists the MC/F's objects and purposes. Please tick the purpose you are applying for: 4 To promote, foster and encourage the playing of rugby d To provide financial support to fund education, coaching and training of administrators, players and coaches To provide financial support to enable schools and clubs to promote the playing of rugby 4 To promote, foster and encourage volunteering and sportsmanship To promote, foster and encourage and develop good administration of the game & leadership qualities both on and off the field in players and coaches d Such other charitable objectives as the Trustees may from time to time identify as being in the interests of the Club 0 0 RESOLUTION OF THE BOARD OF MANAGEMENT OF THE AUCKLAND UNIVERSITY RUGBY FOOTBALL CLUB DATED 19TH NOVEMBER 2013 RESOLVED: That Christopher Seagar as Chairman of the Revenue Committee be authorised to prepare the application for grant funding to the Michael Cormack Foundation and that Christopher it be authorised to sign the grant application on behalf of the Club. 0 • THE AOTEAROA FOUNDATION 20-1464742 FEDERAL FOOTNOTES STATEMENT A PART VII- B, QUESTION 5(A)(4) STATUS OF GRANTEE THE AOTEAROA FOUNDATION MADE GRANTS DURING THE FISCAL YEAR ENDING DECEMBER 31, 2013 TO THE ASIA NEW ZEALAND FOUNDATION. BASED ON THE FOREIGN PUBLIC CHARITY EQUIVALENCE AFFIDAVIT (SEE ATTACHED), THE AOTEAROA FOUNDATION HAS MADE A GOOD FAITH DETERMINATION THAT THE ASIA NEW ZEALAND FOUNDATION IS THE EQUIVALENT OF A PUBLIC CHARITY DESCRIBED IN SECTION 501(C)(3) AND 509(A) OF THE CODE. 1762CE 3846 A56703 • FOREIGN PUBLIC CHARITY EQUIVALENCE AFFIDAVIT OF OFFICER The undersigned, to assist grantmaking foundations in the United States of America determine whether the Asia New Zealand Foundation (the "Grantee") is the equivalent of a public charity described in section 509(a)(1), (2) or (3) of the United States Internal Revenue Code or a private operating foundation described in section 4942(j)(3) of the Code, makes the following statement: 1. Office. I am the [official title] Acting Executive Director of the Grantee. 2. Formation and purposes. The Grantee was created by a rust Deed on 7 December 1994 (subsequently updated most lately on 6 April 2010) and is operated exclusively for the following purpose or purposes [check applicable box or boxes]: X charitable q religious q scientific q literary X educational q fostering national or international amateur sports competition q prevention of cruelty to children or animals 3. Programs and activities . The activities of the Grantee have included and will include [describe past, current, and future activities and operations] • A leadership program (the Young Leaders Network) • Professional development opportunities for young business people, educators, journalists, arts professionals and academics • Education programs for schools and mentoring partnerships between schools and the private sector E • • Research program • Track H non-government diplomacy and international relations activities • Cultural events program with local government partners. 4. Governing documents . Copies of the charter, bylaws, and other documents pursuant to which the Grantee is governed are attached. 5. No improper private benefits . The laws and customs applicable to the Grantee do not permit any of its income or assets to be distributed to, or applied for the benefit of, a private person or non-charitable organization other than: (a) pursuant to the conduct of the Grantee's charitable activities; (b) as payment of reasonable compensation for services rendered; or (c) as payment representing the fair market value of property which the Grantee has purchased. 6. No proprietary interest in Grantee . The Grantee has no shareholders or members who have a proprietary interest in its income or assets. 7. Distribution of assets on dissolution . In the event that the Grantee were to be liquidated or dissolved, under the laws and customs applicable, or under the governing instruments, all its assets would be distributed to another not-for-profit organization for charitable, religious, scientific, literary, or educational purposes, or to a government instrumentality for a public purpose. A copy of the relevant statutory law or provisions in the governing instruments controlling the distribution of the organization's assets on liquidation is attached. 8. Limits on activities. The laws and customs applicable to the Grantee do not permit the organization, other than as an insubstantial part of its activities, to (a) engage in activities that are not for religious, charitable, scientific, literary, or educational purposes; or (b) attempt to influence legislation, by propaganda or otherwise. 9. No candidate campaign activity. The laws and customs applicable to the Grantee do not permit the organization directly or indirectly to participate or intervene in any political campaign on behalf of, or in opposition to, any candidate for public office. -2- 0 0 10. Control by other organizations . The Grantee is [choose one]: X not controlled by or operated in connection with, any other organization q controlled by or operated in connection with another organization or organizations as follows [descnbe]: 11. Qualification as publicly supported organization. The Grantee is [check one of the following]- q a school (that is, an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on and that has adopted and operates pursuant to a racially nondiscriminatory policy as to students, and has completed IRS Form 5578). q a hospital (that is, an organization whose principal purpose or function is the providing of medical or hospital care). q a church (that is, a church, synagogue, or mosque). X none of the above, but it satisfies a public support test as demonstrated by the attached Schedule of Financial Support for the five most recently completed taxable years. 12. Authorization . The Board of Trustees of the Grantee has authorized me to make this Declaration and affirms its contents. -3- 0 0 13. Binding representations . The representations made in this Declaration are binding on the Grantee. I declare that the foregoing is true and correct of my own knowledge. X•. L'am'--'^•'^ ^ f t ff 'I'. ^ ^" r-^ [signature of declarant] DATE: 22 May 2012 Attachments: • Governing documents • Relevant statutory law or governing document provisions relating to dissolution • Form 5578 (if organization is a school) • Schedule of Financial Support -4- • • SEE SEPARATE ATTACHMENT Schedule of Financial Support ..... Year Ya ar TOtal [ . i. .... Year Year Year Year 1 cal 1 UL I '1VIv- .- fivevc 2007 2008 2009 2010 2011 years (A) Gifts, grants , and contributions received. (B) Membership fees received (C) Gross receipts from admissions , merchandise sold or services performed , or furnishing of facilities in any activity that is not a business unrelated to the organization's exempt purposes: (D) Gross income from interest, dividends, rents, and royalties, (E) Net income from business activities that are unrelated to the organization's exempt purposes* (F) The value of services or facilities furnished by a governmental unit without charge (G) The total of lines (A) through (F): (H) Line (G) minus line (C). (I) Two percent of line (H). (J) Please attach a schedule of contributions for each donor whose support for the five-year period was greater than the amount on line (I) (a major donor), and showing the amount by which each major donor's total contributions exceeded the amount on line (I) (excess contributions). (K) The sum of all major donors' excess contributions is (L) The four-year total for line (H), minus the five-year totals of lines (D), (E), and (K) (the amount of public support) is (M) Line (L) divided by the five-year total for line (H) (the percentage of the organization's support that is public support) is* is THE AOTEAROA FOUNDATION 20-1464742 FEDERAL FOOTNOTES S A!EMEN1 A PART VII-B, QUESTION 5(A)(4) STATUS OF GRANTEE THE AOTEAROA FOUNDATION MADE GRANTS DURING THE FISCAL YEAR ENDING DECEMBER 31, 2013 TO THE NEW ZEALAND ANTARCTIC RESEARCH INSTITUTE. THE AOTEAROA FOUNDATION TREATS THE NEW ZEALAND ANTARCTIC RESEARCH INSTITUTE AS NOT BEING DESCRIBED IN SECTION 501(C)(3)OF THE CODE AND EXERCISES EXPENDITURE RESPONSIBILITY WITH RESPECT TO THE GRANT. (SEE EXPENDITURE RESPONSIBILITY AGREEMENT ATTACHED). 1762CE 3846 A56703 0 0 New Zealand Antarctic Research Institute (NZARI) Robertson Foundation Report (September 2013) Goal: NZARI was developed to transform the way we do Scientific Research in Antarctica. Our 15t target is to move the programme from discrete one off individual investigator driven research projects to a programme that addresses the significant challenges that face the planet. Our 2nd target is to better engage government, funders and the nation in the potential impact of Antarctica on the planet as the world warms. Strategy: Leading the way Question / Challenge driven - Our focus is to solve the Challenge of how Antarctica (its ice sheets, shelves, sea ice, ocean and life) will respond in a warming world and in turn what impact changes in Antarctica will have on the wider planet (sea level, climate and life). Geographic Focus - While the challenge is large in geographic extent (10% of the surface of the planet), or focus - the Ross Sea sector and New Zealand's subantarctic reflect unique settings to address the challenge - such as the size of and structure of the Ross Ice Shelf (at the size of France it potentially has a very large vulnerability and impact and southern New Zealand), and the New Zealand subantarctic (which spans the subantarctic and subtropical fronts and the mid-latitude zonal westerly winds) and offers unparalleled opportunity to measure the impact of their variability on the rest of the planet. Nationally joined up - We are developing the approach to solving the challenge through national meetings and think tanks ensuring that we have the might of multiple disciplines and strengths along with the commitment of all to solving the Challenge. Internationally collaborative - We are forming collaborative partnerships with strategic international partners to deliver logistic support and add specialist expertise and help grow the interdisciplinary effort. Transformative - the scientific requirement is driving the direction and focus of the programme and demanding that the logistics step up to help deliver at the larger programme level rather than logistics and logistic accountability constraining effort to small manageable projects. Peer Review and feedback - a strong review and feedback process which lifts the standard of proposals and helps reset expectations. 2012/2013 Achievements Since it's launch by the Prime Minister of New Zealand in August 2012, NZARI has: Put in place a new structure and operational plan that includes limited funding for small focused high impact research projects that generate the new ideas and directions for the programme as well as delivering near term outcomes, publications supporting young researchers and high quality students. These projects have leveraged another 150% of additional funding from other institutional sources. Raised additional support through sponsorship from Air New Zealand, which include $lmillion in new funding over the next 3-years and assists with profile development and bringing our focus, plans and achievements to the wider national audience. Held a think tank attended by 20 NZ scientists and national meeting attended by 80 NZ Scientists and US scientists to develop the grand challenge facing the Antarctic. This has focused the direction of requests for proposals, programmatic development and preparation of a proposal for a National Antarctic Science Challenge for New Zealand. Antarcticfutures document attached. 4. We have already funded 7 new research projects for Antarctic research, which focus on immediate opportunities to work on issues associated with change in the Antarctic and i,li ntiAlina r-lriwina nrnrncc and nocnnncpc Fiinllarl nrniertc are outlined in the appended articlesfrom Kia Ora Magazine and the NZ Herald. The 7 projects were selected from 30 proposals reflecting a funding rate of 20%. 5. Selection of the "Deep South" as one of 10 National Science Challenges for New Zealand to be funded by the NZ government. Full extent of funding and scope to be worked out over the next 2-3 months for sign off by the NZ Science Board. Likely level of funding $80+ million over 10 years through new funding, alignment of other contestable funds and ring fencing of core funding to Crown Research Institutes. 6. Development of new collaborative plans with the Korean Polar Research Institute, Australian Antarctic Division and ongoing discussions with the US Antarctic Programme. 7. Launch of a new Subantarctic research initiative that will allow a world first focus for long term monitoring of impact of change in the Antarctic on the wider planet. The subantarctic is where the environmental gradients are steepest which will make detection easiest and more reliable. This initiative has allowed us to develop new relationships with the NZ Navy, NIWA and the Sir Peter Blake Trust. The relationship with the Sir Peter Blake Trust will provide a valuable link to the North Island and Auckland population who are not naturally connected with the southern part of their own country, which is a core goal of NZARI and the Deep South National Science Challenge. See attached Leadership Magazine article. 8. Developed new MoU and support agreement with Antarctica New Zealand for support to NZARI and logistic support for NZARI Research. Major Plans for 2013/2014 i. Complete meetings and implementation plan for Deep South National Science Challenge ii. 2nd Project Proposal Round iii. Launch of first 2 research programmes iv. 15t Winter School v. Host SCAR Horizon Scan meeting and SCAR Open Science Conference vi. Introduce new donors to NZARI Funding request for 2013/2014 i. October 31, 2013: $500,000 to launch 2nd round of project funding ii. April 30, 2014: $500,000 to fund new research programmes Attachments: i. Antarctic futures paper ii. Kia Ora magazine articles iii. NZ Herald article iv. Leadership magazine articles v. 2012/2013 Accounts vi. 2013/2014 Budget Gary Wilson // NZARI Director// 30 September 2013 0 0 The New Zealand Antarctic Research Institute 5-year focus for Antarctic, Southern Ocean and Subantarctic Research (2013-2018) Imperative With a warming globe, we must determine how vulnerable Antarctica's ice sheets, shelves and sea ice are to the warming. Equally, with greater pressures on biological resources, we must determine how resilient biological systems are to both changing climate and fishing pressure. The Antarctica and Southern Ocean response to global change will have a direct influence on New Zealand's natural environment and beyond via a global ocean and atmospheric circulation, which in the South is dominated by Antarctic processes. Understanding and planning for the effects on New Zealand and managing our natural resources will require an integrated study of Antarctic processes (ice, ocean, atmosphere and biology) and how they impact on New Zealand's ocean, climate and biota. Purpose This document outlines the research focus for Antarctic Science through NZARI over the next 5 years as identified from a community-wide strategic science meeting hosted by NZARI in Auckland in March 2013. It identifies the Key Scientific Challenge, outlines the urgency to address that challenge, specifically for New Zealand, its strategic interests and economic wellbeing. It identifies the approach required to address the challenge along with key knowledge gaps to focus our research effort. The next steps are to develop 1) an implementation plan, which aligns research facilities, resources and effort with available funding in order to deliver the targeted scientific research, and 2) an integrated multidisciplinary research and expedition programme in each of the key focus areas. Key Scientific Challenge In the past two decades there has been a revolution in our understanding of the global ocean and climate system. The lessons are: • That the system is globally interconnected with each region highly interdependent on neighboring regions • That the system is dynamic and highly responsive to change • That there is a complex set of thresholds and feedbacks that divide responses into two modes of change - incremental or linear change and major steps or non-linear change • Antarctica, the Southern Ocean and the atmosphere play a critical role in driving and regulating both modes of change at different scales • There is increasing pressure to harvest biological resources of the Antarctic and Southern Ocean • With changing climate and human presence, Antarctica is under threat from introduced species • Knowledge of how changes in Antarctica will influence NZ requires a continuum of understanding about Antarctica, Southern ocean and subantarctic dynamic and interactive processes 0 0 The overarching challenge for NZARI is to: • Determine how and at what rate Antarctica, the Southern Ocean and the Subantarctic are responding to, moderating, or controlling the effects of a warming global climate, and • Reduce the uncertainties around rates of change and thresholds for change in physical, chemical and biological systems that have global implications - i.e. what components of the system exhibit linear behavior and what components respond with non-linear behaviour and why and how do the components switch between states. • Determine how the change will impact global systems (ocean, atmosphere and biology) so that governments and communities can plan for change on appropriate timescales. The vastness of Antarctica and the Southern Ocean requires a focus on components of the climate system that drive change. We will make the greatest advancements by directing our attention to components of the system that are potentially most vulnerable and/or sensitive to change. To achieve these goals we must build robust integrated research programmes that study the Antarctic, Southern Ocean and Subantarctic system at relevant spatial and temporal scales. Urgency Paleoclimate records demonstrate that global atmospheric carbon dioxide concentrations of 400ppm have resulted in the loss of the Ross Ice Shelf and retreat of the West Antarctic Ice Sheet. Current atmospheric CO2 is 396ppm and rising at -2ppm per year. Thus, we will already have to adapt to the 400ppm world. What we do not know is the pathway, mechanisms and timescales of change that will play out as the Ross Embayment changes from an ice-covered to and ice-free region in the future. Equally important is knowing what change we will see in ecosystems and biodiversity and what that means for New Zealand's strategic interests in the Ross Sea and Southern Ocean. Extinction rates are exponentially increasing and climate change is predicted to result in the next mass extinction of species. Some argue that the next mass extinction has already begun. New Zealand's economy is critically linked to the health and properties of the surrounding ocean and climate, and any significant change in these systems will require a comprehensive and robust plan for mitigation and adaptation. Already, the increased impact of extreme climate events is clearly demonstrating that there is little capacity for coping with climate change in New Zealand's Primary Industries. Furthermore, 60% of New Zealanders live and work within Skm of the coast illustrating the vulnerability and risks to critical infrastructure and livelihoods from rising sea level. How do we address the challenge? Predicting linear and non-linear behavior requires a holistic approach: • Monitoring areas and aspects of the Antarctic, Southern Ocean and Subantarctic that are sensitive to change • Understanding the fundamental processes that collectively comprise the natural system • Building numerical models that connect the processes and observations through dynamic and realistic algorithms on appropriate scales • Use of the results of previous Earth experiments to provide boundary conditions that describe the state of the natural environment and systems in high CO2 worlds. • Use of appropriate time series of data sets to quantify variability and trends in components of the natural system. While access might be difficult and challenging, deciphering change in Antarctica and the Southern Ocean provides a unique opportunity to understand fundamental processes without the complex overprinting of human impacts. Effort must be focused on those geographic locations and system components that are vulnerable to and/or sensitive to change. In essence, this requires identification of key areas that experience rapid change over short distances in the physical and 2 0 0 biological parameters over relatively short timeframes of observation that will allow rates of change to be determined with a relatively high degree of certainty. Knowledge Gaps / Opportunities where New Zealand is well placed to contribute: BourldIIIy CU/IUILIVII. II1 U Iiiyil ,v2 WUIRU - ivCVJ c^'.caialIU .SI..1CIILIS%S haVC lcu iiic 'vJay ii. Sa.:c :t1:; drilling (sediment and ice cores) to recover Antarctic paleoclimate records, which, when integrated with climate and ice sheet models, reveal fundamental changes in the Antarctic cryosphere. This has enabled the Intergovernmental Panel on Climate Change (IPCC) to put some certainty on the state of the Antarctic ice sheet and physical process response in a 400ppm CO2 world (an ice-free Ross Sea). But, since the already 400 ppm world is already upon us, extending the paleoclimate records to 500 and 600 ppm worlds, which are projected in the next 20-50 years, are essential. Biological indicators of changing climate - Antarctic terrestrial ecosystems will be the first to respond to changing climatic conditions. New Zealand scientists have already begun developing an environmental gradient approach to understanding variations in biodiversity. Current focus has been the McMurdo Dry Valleys, where baseline observations can be established but the next steps are extending the studies to other sites in the Ross Sea sector of potentially greater sensitivity to change such as Cape Adare. Recent work with the Latitudinal Gradient Project and IPY programmes demonstrates that integration of a wider range of ecosystem components (physical and biological) is required to distinguish and quantify biotic and abiotic drivers of change. The Ross Ice Shelf - This feature represents an Achilles heel in the ice-ocean-climate system. It provides a buffer between the warm ocean and the marine-based West Antarctic Ice Sheet, yet internal feedbacks through grounding-line dynamics and sea-ice formation may profoundly affect ice shelf dynamics. Surprisingly, despite its size and importance, to date there are very few observations of ocean circulation beneath the floating ice or of the ice-ocean interaction along its base. Sea floor bathymetry beneath the ice shelf and its potential to control ice shelf response to changing ocean and climate conditions also remains mostly unknown. Climate prediction - The atmosphere is the great connector between multiple components of the Antarctic and New Zealand regions on short timescales. While there are long-term time series of atmospheric measurements from Arrival Heights / Scott Base, a better connection between atmospheric parameters and physical and biological system responses are needed. Building hemispheric scale climate models is critical to understanding short-term (decadal) controls on New Zealand climate through variability in the southern annular mode. Longer time-frame climatic change in New Zealand is controlled by variability in Southern Ocean currents and fronts and their relationship with competing subtropical inflows. Ocean connections - The southern ocean is intimately linked to the atmosphere but operates at longer time scales to affect the distribution of heat, salt, gases and nutrients between Antarctica and New Zealand and the rest of the world. Changes in this ocean can be measured real-time and are preserved in ice and sediment core archives. Off Antarctica, sea ice and the overturning circulation dominate ocean/atmosphere interaction, especially the uptake/release of carbon dioxide: in the subantarctic, the wind-driven Antarctic Circumpolar Current (ACC) affects gas and heat uptake and marine productivity, whereas the New Zealand climate and ocean reflect the interplay between the ACC and Pacific subtropical inflow. Detecting change requires assessment of (i) recent ocean and climate databases, concomitant with real-time measurements, and (ii) ice/sediment archives to identify long-term impacts and natural cycles. Marine ecosystem structure - limited access has restricted basic understanding of the marine ecosystem from primary productivity to top predator structure. Furthermore, the physical controls and transfer mechanisms of productivity through the foodweb are still to be determined as are the linkages between physical and biological processes. Yet, there is increasing pressure to harvest components of the food-web and urgent pressure to develop effective management and conservation strategies. One of the biggest challenges is developing time series to determine primary drivers of ecosystem change and response. In addition, the coastal environment offers a 3 unique opportunity to study the marine/terrestrial ocean/atmospheric connections and physical impacts on biological systems, such as ocean acidification and ice presence. Ease of access to the coastal marine environment provides an important opportunity to verify methods, work adaptively and sample a wide range of environments. The cubantarrtir - New Zealanrd's Subanrarctic offers a globally unique opportunity and vantage point to observe how impact of climate change in Antarctica and the Southern Ocean affects New Zealand and global systems. It straddles steep gradients across a series of oceanographic fronts that define the northern boundary of the Antarctic Circumpolar Current. Furthermore, New Zealand's Subantarctic environment is home to a range of iconic species highly adapted to their environments that may be sentinels of change. The Subantarctic islands are hotspots of biodiversity. They are expected to be particularly sensitive to environmental change and are an excellent opportunity to undertake long-term ecological research that spans atmospheric and marine processes and environments. Linking changes in Subantarctic ecology to Southern Ocean changes and fishing activity remains a challenge. Constraints The vagaries of funding for Antarctic research limits any effort to develop large integrated multidisciplinary scientific research efforts that address challenges on the scales identified here. Logistical constraints can also limit access, especially regular access, to key environments beyond Scott Base (The Ross Sea, Southern Ocean, Ross Ice Shelf and other terrestrial environments beyond helicopter range from Scott Base). Further, the capacity to host large integrated teams to conduct real-time experiments is currently a challenge - the traditional model for operation of New Zealand Antarctic field programmes is to a large degree restricted to simple access to collect samples and return these to home laboratories. While there are exceptions, adequate infrastructure is not readily available and scientific research has generally been restricted to questions that can be addressed by sample collection. To date, more complex questions that require regular or continuous observations or manipulations have not been supportable. While the strong relationship with the US Antarctic Program provides many opportunities, it has also tended to limit large-scale research effort to areas of priority to the United States and their scientific interests rather than New Zealand priorities. A new approach The scale and mode of New Zealand's Antarctic and Southern Ocean scientific efforts must change if the key scientific challenge and the knowledge gaps/opportunity identified here are to be addressed and New Zealand is to continue to be an influential Treaty Member. Mounting expeditions to natural laboratories beyond traditional New Zealand foci is essential; i.e. across the Ross Ice Shelf, into the Ross Sea and to terrestrial environments beyond southern Victoria Land. Not only access but on-site laboratories are needed to enable real-time observations, measurements and manipulations. Overcoming internal New Zealand institutional boundaries and histories will be essential to engage the full breadth of expertise and experience across the New Zealand scientific community, whether in agencies such as the Department of Conservation, Ministry of Primary Industries (fisheries and biodiversity) and National Institute for Water and Atmospheric Research or Universities. Collaborative relationships with other international partners in the Antarctic that provide critical leveraging of limited resources is essential, particularly the US, Australia and Korea, as New Zealand attempts to address these key research challenges and build capacity in the New Zealand scientific community. In addition to new expeditions, nodes of ongoing effort in areas with strong gradients in natural system provide important opportunities to establish programmes that integrate biological and physical measurements in an interdisciplinary time series of observation to monitor and understand change. Particularly important for New Zealand will be to extend these efforts into the southern ocean and New Zealand's own Subantarctic back yard. 4 4 k IT + I ,1,, I l ;, ^,^i y, •p ^•1^• ^t.l.'l l ^ ^^;i ''.'' • fit' ,^' i^ ``^- ^ ^^^^a . , ^ ^ 11^^ ^ ' it 1^ 1^^^•' I ^^ rl' 'I^ 1^ ^S - ^ _^ Iii i • 1^ ^ +1 ^ ^^ ' ^1 9^ ^ '' q^ 'f^ t^ VVI J", 77 =mar. . .^ Fi^ • /1 • J •r 16; ^ 13 2uqu^--e-, 74^j-^ Clinics in the Clouds R+^ A virtual clinic might be the future of health care Brief Paia-sea anchors, leading design, space music, and modern solutions to News Prefab, a new wortq)lace dilemmas yP r ate, Wellington establishment. TOy S A vasee plans to be much more than LOB keyboard. th e new ^ another cafe. just Beetle , easy coffee Past Perfect The lovely city Green Party Martin of Kyoto is an exnraoidinary Bosley says we si rould cat blend of ancient history and our greens Japanese culture News This month's new American American Idyll cookbooks, make your not as well-known Samoa is own cider, and some as its neighbour Get there moreish battle before this changes Wine Bob Campbell just How Bars Are Sydney has cant get enough prno, noir as incredibly developed into a top-class For most, the he : eviews two of the best spot for drinking and eating hot and dry summer we 1 Beer Go' don McLauchlan have emerged from has begun Daytripper we take a waxes lyrical about a North to fade from memory in the face look at some day trips out Canterbury drop. of shorter days and cold mornings. of Auckland. Farmers however, are still feeling the On Song Hai bourCrand effects As a country so rehanton primary industries,our MUSIC New music from Kowloon is the spot to stay rn economy is very sensitive to changes in the weather and as around the country Hong Kong global warming begins to take effect, we need to know what lies `ac WOW"Factor Your chance in store for us New Zealand scientists are leading the world in -11 to examine some incredible ALow Profile AWaihcke answering this question, taking a closer took atAntarctica to see gan-reritsupclose . New Zealand has along and Island home sits discietely in how it will react to a changing climate Trl Nation The Barfoot & Sir Ednwd Hillary its gorgeous surrounds illustrious history in Antarctica with Kiwis like Thompson World Triathlon and Sir Peter Blake devoting part of their lives to furthering our Style AU you need wear as Auckland Ietunts understandingofit New Zealand scientists Investigating the winter approaches IL Agenda Best events around rmphcationsofclimate changeinAntarcticaarejust carryingon Looking good is all Beauty the country this month our proud legacy at the bottom of the world. Turn to about art this month 0 page ba for our story on Air New Zealand's 0 The Great Unknown involvement in this important venture 0 C Scientists are looking to Check-In Au New Zealand Jenny Farrell 0 Antarctica for answers about news. Anpoints and Koru Editor "a update . networks, and more. W global warming. 0 1 F---I 0 +special feature- A ,. 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Few will ever get the opportuN;y to Walk are leading the way on finding out how lhro,igh the su real field of gothic cathedrals created by Antarctica rr>>ght respond - it's research the the pressuie of the advancing ice feel the resonant othe'vorldliness of Captain Robert Scott's Terra Nova hut, of whole planet M!, benefit from. see the blue of the sky become m,lky a id v4 to as it nears the ice. as if the two were fused together, dke the sky had me ely collected the ice at its edges and tied e above YOU with the suns brd:rant knot But Antaiciica is so massive, and the conditions so hash, that even to those who have built caeeis around sludyrny It much of it rcmains unknown Due south of N wv catand has use Ross Sea, and on top of tl,al at its southern limit, the Ross Ice Shelf, which at about the size of France is the largest pace of floating ice in the world For sornethmg so enormous, an inaecirbly small amount rs brown about it. As the woiirl starts to negotiate the challenges of climatc change this lack of knowledge, says Professor Gary Wilson, director of the recently created New ?;'3land Anta,chc Research Institute (NZARI) is a huge problem "We know almost nothing about how it works and how vulnerable it is to war n,nx7 oceans or a warming climate Yet it plays a critical role in buffering the cold ice sheets from the warm ocean, and we need to know how it might respond as the globe warms" New Zealand is uniquely poised to lead the world in this regard, not only is it due south of Now Zealand, but the Ross Ice Shelf sits, essentially. on Scott Base's front door step Wdson, who has made 22 tips to the ice over the past 25 years, says it -- -_ F,^ r^i ^^ o ° • t e I IeT], 0 0 0 0 1 e . e ' iTi'/ t A1' ° tJtC f_tP ?.1r:Le1^ l?w°11" LIlOL1;yr Ca 1_' 7f1?[; il^ *f . ^^y lT 1P^t=' ''0m-tlor - , G •,!lllo ^'LA ql^I ° o R:.j i ^eJ °U9 1 ° -" } - r a-. is imperative that we understand how Anlalctica will ` _ . respond The Ross Ice Shelf has disappeared and reformed some -'0 times over the past 2 5 moron t _. years as it has reacted to changes In the global climate "it fthe ice shelf was certainly not there in past intervals of warmth when caubon dioxide levels were at about 400 pails per million , and light now were at 395 pails peg micron , and climbing There's ^, . • a real sense of ui gency to do something about this." Wilson says \ `'• This country has a vested interest in this research . 1 r S too Wilson calls Antarctica 'tile engine that chives 'he ocean and cdmate system' , and given New 1 - y / - - Zealand 's lelatlve pioxumty to Mtarcucas cold , C 1 ocean currents any changes me [kely' to affect us more seriously. and mole cluicwy, than anywiuLie ^ `- •. ^, in the world Variation i n the t enyperat ure of water '.. f Y l 7 J flowing up from Antarctica will influence our cl I nate and the productivity of our oceans. As a country so dependent on primary nxlrrstries, any changes r - ' in C ornate - as II re recent hOl. Cdy summer has shown - can have profound effects. 'We are not necessarly just cone!lied with the fact that the sea Alt 0 ROW } e3^IL(SU;,i^b[,uli_iYi4irn r7•!exe:b^P rcN 'I -. r i 1171,*115 n- "T. , ,x Alt 12077- 5: 1. ..o- _ ^, ^ ,^" +te^ ,z ^ s '•'t ^',^ ^'^^cr',9 ^'v ^ ..4i`^k _ b »a` is `.n -= j 9 ' r^li^ll•• If Al 514 • +SPed?I feature e^ fj1 p en^a^i _ fed ea . is ea . #O-r lie, level might rise, were concerned with things that night happen in a much shotei time frame and have a midi more marked impacl on the way we live." Wilson says 'it rs a question of worwng out how much cnange we can adapt to' NZARI , which wori xt„ tlr fir ' 'F1 i r . f Ysf i} of two young scientists each year to spend time on spectrc projects on the ice The partnership, says Ai New Zealand s head of sponsorship, James Gibson, aligns with tie company's ambitions 'A i New Zealand has significant environmental aspirations, and given that Antaicuca can tell its so much of what is likely to happen in New Zealand and the rest of the woild, it makes sense for is to invest in the work that New Zealand scientists me undertaking in Antarctica " Fenwick says it is of "leaf sign&-ante" that a Kiwi company sees the importance of what NZARI and Antarctica New Zealand are trying to achieve 11 is. he says, merely a continuation of New Zealand s connection to Antarctica. a connection that goes back over a century to the great men who inititrated soentitrc inquiry at the bottom of the world. "It's significant that we launched at the time when we are celebrating those early Antarctic explorer, tke Scott, Shackteton and Amundsen, who really launched the importance of polar science and whose records we're still drawing on as really important pieces of history. New Zealand's connection with all that history - it's been the launching place for some of those expeditions - has helped cement the importance of New Zealand in Antarctic science." he says That is an importance that looks sure to continue. STORY JAMES BORROWDALE a Uirl t IN- ':I ! ^ ^s b j^ a ^ ^- a;" .rya. $ a ^Y ' ' gyp R +'r^Y' T• » ^ • YR'i^^ .}{^p, ,Y^j^^^ R Ti 5_ ^ ^^"'^f^ ^ p !J d YZ" ., 1' ° • mot'Y 'Y 4 ^ y(i y ^^ •Y-i Q w • ^ • ,P •^ t ..^.^[ Y^r3 Tw^'%,:'3 r"^a.r 'rt 'y •a• „.'.'M^-,. - . ^^i,`^ ^^K{" w^tiu o °-ob 0 o L^l ?°E^fflUTI ^ l''^1 • ^o e' ^^o' rouo ne ^Aeo °r^l^^99Rr5 ^-.^ p'rpa nd N 'oLolUl^^o fitl^^l9.^1r^' l^l^^ off' L.t^tfll^C^hRti-I!^^3t1fL^ o p o 0 0 ^?lvu^7 ^ ^ R 11 ^Jt^SQ^^^^Jtn` ^lrl^]^1^.3@ ^ n - r 111M t /Z AIR NEW ZEALAND pdmi^eolie. 202 I i i fTl 1 ^t ill +environment III rqiI qII[281u^sI coinp [ lobal cllnmle chango - and, of pour so, PROyJ !Jr N(w 1wLi Is global In Its reach" t `y' 4 ^• _ A,- t Funded fore year horn a total budget ^,,^Q ` r • - ' '^,. '/.I p, c ($1 6 million the seven protects are .dl leach Contra (see ^ • ; ,i^'? • •,t `^" s^'• . ^ • ^ r In one way or another concerned with :^^ 1 FY' =+^,T, • V` ^ t,^ ^^! tie same qunsnnn how is lurtnrctlrta I porno to belwve vs wu wan,, tlo worker 11 ' r fi ^'.y .. •,°`^ •^ ,- Its about working ad how Dr yuy hectic \ 1 •1 ""4t; , -^ r ' ^^`^ ,_ ^s ^" i•'+^' ' Y+`w r ulnerable Mlorctlca is and what that r ^^^1 + .,'• ;.v ^. -lt=' r, +• ,'+^ ' t ^`••°• .: •`,.:.y. I ,pansm luims of Impact on thee tact 1#4 _ rt reel study ^^ {1 itarctica is really the ^,w,5•,°,,, lye^ r Irl w Zeesing 's veuthern r '^' ,• + +„ -^`t^,,, ^. '`: nl the planet, " says Wilson 'There are r r ^:y," fir: `'-•r•F when CO. nne that drives `,4 "t • ome basic but very important thlrgs sent-day ldv0L0e ' 'n o rye do know We know III MtarI Is and o n on both the oceaneeI really the engine tlat drives circulation of both the an it, • -^ and the atmosphere We also allow 11 to pokes warm faster 5S e . than other Mns nr the pineal 'tows re not any ndng c•--'-^ to vcfrrn the Antsr;ne which has this brg ice eutx, sitting DrtbagAodekva9owk110o^y ^ p {'1 •^j; t, r than other parts of on it but 5130 we ire going to roduco Uw tumpcruturo qro MA d • jest t» v et. ,.i r ^. , I i' •'I ' greolent between the pole And equator You can I nel*yorArd4 the planet" iQ Ihe' I,y larrtudl onrtlsli Q 4y y^• • ••i J^ make a change Al the ArrlarctIc without It tav/1g global too /` impl^calluns ^i _ •%= ,;; ^'J` _ The Is clear, but them are ninny unknowns t ^ , big picture me^,c r when 1 comes to he detail Nnong them is the likely coastal Been will warm and acidify agar the r 11 't contribution Irom A>>len.lica to future as level rise ' itO Ivenltyh y.tnenl of hlarhle BdrtiEe. ttrs v r' t, - - been a reel proble n,* says Nelsh We are learning hunt P.•trolectal11 ^y lop cryecl{y'(oadepf. r ,4"IF q^ satalhtus that are measuring the ice sheets and changes, but they vo only bton In space 10 years, and Its difficult • to base predartlons for the next centuryon n decades i Ohsarvetlonel data and worth of data ' . tM Iveralty, 5dt , µ ll A The past may provide mom cues, Arid that's where tending pf Apia Ndsl i o expertise I as HIS research project Assessing It for 00W .^^f br Polo, Mipllh; alrou, wheal i of lha sown funded projects _ has been earmarked for partic ular cuplwd from din Now _eulend , seeks to provide a'state of play symbols of past, present And future polar 4 of amplitcauon And its potential Oonsoquencos lbod taeouroes , J attl ilea ^. = What Is palur aiiipl,ficittlon? Simply put Is 1 ntlnehst0 0 seeinplhlaStleof4lePuss r ^I ', r f ^ •R`,- the phonomollon of the polar legions warmIng 01 P-'NebR1 I,ed yY Gr qeQl^ Bar5 b the ,e 111 ' ' uNucchtyorD6rlb rbiey ataWayM '•.•^.^Tk••oa,me twice as math es anywlwm else For relalbey • wN study the 9odd 7egdtr7mMta of killer lee, r f ) .'" ° small Incnases of say two cugroas of global Weddelr seals and AdI pe a ns to In predict everage 'emporeturo Incroaco you get lour or change and to identify What food rase es am 1 ' ^! y 1 e live dugs ma In the polar regions , and you see some pnaty big consequ ences as a result of that - such a t ice sheets mulling Understanding how tenestrlel Antarctica will The Ia d use the world was on avumga two climate respond to change le essential for managing degrees enamor was three fN1110/1 years ago the continent While several biologically driven 'We lost the West AlntaictlC Ice sheet and the measures o1 oblongs have exert ide"lifted, our - yi' ` 1ore tie d "sh"ot, and (he Se ri level was to" knowledge of their underlying processes Is lacking Nyhu, I go This study, led by prof Craig Cary and Dr Charles • ^' " ^, w„ than today Galore scaring everybody, Lee of the UniversAy of Waikato's International ` - ='.,^+•• , (hose M sheets ore big end take a white to melt, Centre for Terrestrial Antarctic Research will carry but based on the past we should be plnnnn,g for out experiments to address these questions about a metre per century of sea Iwal rise" ©, ( AIRNEWZEALANU CO NZ 0 KlnOra 0 Admk w F - fjE wn;um 36 Fa, g - ^ US -6 r. ------ The New Zealand Herald Fnday June 14. 2013 ' A10 I r¢heraklmnz ------ ^`io ?,I^^ ti ^^ ^fll AntaKdc f earth Icy continent holds climate clues New research aims to find out how global warming in Antarctica affects the equator Jae Mmes science Wilson said. Bud what I think has }annr morton@nzheraldconz been a real challenge is being able to capital, se an that and work on some he closest most of us will get of the big questions that face New to Antarctica is nature door Zealanders and wider humanity' mentanes hire kYozen Planet He sees Antarctica's role to world T - but the white continent's climate science as 'cruoar. relevance to us and our future is tar 'Every time you look at it it comes greater than we think back to an Antarctica component Many of the dues to dhnate And its this big part of the planet - dtange lie Mined within Antarchcas and there are aspects of it that we ice. waiting to be discovered by scien- barely understand' tists tang to learn what global NZARI is a concept he personally warming at the poles might mean for long pushed for - and he is pleased nations at the equator. at what it has achieved since its birth Antarctica hold about 90 per cent in August of the planet's ice and about one-tenth Crown research institute Antarc- of Its total terrestrial surface area and bca New Zealand was tnveshgabng its atmosphere and water manes establishing such an initiative two ..a^.^ men h•,t m „ IAn1 efa,t inn wrh 1L".. .'M1 f 71Lteonloebtolosy upota bsecrebaf amonsIt- AOeoaeoverUietce- 4 Adaptlnama SHcebesg oMng and 6)Antactle predaW[c D Assessing ontbewBftecontmeat mptl8atloo• andtbefotoee mappdni abetter tbeblaerpdc>^e respoudlaigtodsutge Understanding how Researchers from Victoria The New Zealand Antarctic coastal seas will The relationship between C1 mate change and terrestrial Antarctica will University's Antarctic Antarctic Research A projectt, led by Or G•eg warm and acidity over the large Iceberg calving commercial fishing are todimate Centre will Inst lute has assembled BodekerofBodeker coming decades, and the processesand the two poss\blecausesof respond Research essential for produce a -stateof-plaY an International team of Scientific wll I develop a capacity of polar marine "grounding line'-where c'tangeintheRossSea, change is managing the pristine synthesh of the past climate experts to study new method to simulate spenesto adapt to ice loses contact with the but our abil tyto predict or is continent While several present and future polar environmental conditions the evolution of the charge will determine the ground to become a manage effects driven amplification and its In New Zealand's southern Antarctic ozone layer and make up and function ng floating ice shelf-will limited byladcof biologically 'ciforrnatfon.Antarctfca's measures of change have possible consequences regions from a period In Its coupOng to the of futurepolar come under focus Ina been Identified, our This phenomenon occurs Earths history when C02 southern high latitude populations. study lookingat the main predators adapt to knowledgeontheir of processes In concentrations were climate system. This will Research led by Or eastern front otthe Ross conditions affecting their because underlying processes is the d.mate system that similar to those In the next Involve extending a state- Miles Lamare of Otago Ice Shelf where there food resources, which five years. of-the-art simple donate University's department have been recent makes titers ideal Lacking -and their aniplify the amount of applicability requires warming In the high Led by Dr Richard Lcvy model wdh a novel semi- of marine soertce will changes Uainga sentinels forassessligthe Astudytedby Compared to the of GNS Science and Or e m tp:rrcal modula that quantity species' cap arty combinational stateoflheRossSea validation latitudes theUniversityof global average Robert McKay of the describes the key to adapt - and seekto observational data and ecosystem Astuoyledby of the t':alkato s International It Is a consstent Antarctic Research processes governing r.nderstand if rates of mathematical models. the Or Regina 6sert. feature of climate model Centre. the team will stratospher cozone change in polar OtagoUnnrersdy4ed University ofCanterb,iry's Centre for Terrestrial Research will . examine rock and enwortrnents arewdhin probed will lead to an Gateway Antarctica. will Antarctic projection simulations outexperlmentsto and temperature sediment cores from the threshold capacity of Improved understanding studythefood carry these questions recorstrucltons and Is beneath the Southern species to adapt. of time scales and requirements of killer address Thefindlrgswtflaythe Important because of the Ocean to determine how Understanding both will magnitudes of response whales. weddetseal sand foundation for an effect of the warming on It changed as C0,tevels reduce uncertainty in areaLUvee• Adel* penguins to help International observation Ice sheet stabti ly and, as increased and what around the late of the dimensional setting - an predict change and to network to manltor and a result the global sea Impact these changes had Antarctic marine Important objective for identify what food forecast etlects of drmate level. on Antarctica's Ice sheets. ecosystem. prcnedmg change in West resources are crucial to Antarctica thesepredators. change. Almost 500km south- 1heasl of Blufl, the Auckland Islands form a remote, philanthropist Julian kabertsc rt, and is charred by fir Polar Blake Trust wrnd'bat'ered archipelago with a muster of shipwrecks and no human trustee Rob Fenwlck its goal is to strengthen New Zealand's research into residents Antarctica and the Southern Ocean and find the answers this part of the world holds to dealing with ilia global Ihmats of climate change And the 'When you gel there, you re reminded that you rem the middle of a pretty effect it bas, in particular, on New Zealand inhospitable bell of wind and climate on the globe' Professor Wilson, a Blade Leader, says But once you gel inside ilia islands They are 'Essentially New Zealand hits mole to lose than any other country, in ilia incredibly green, and you immediately notice the swarms of birds Once short term at least," Wilson •ays 'As a maritime notion , Now Zealand is you get rlrner, you con pick out some of the larger animals that live there one of the first countries to site the Antarctic circumpolar current, the cold water, which when matched with the worm subtropical Inflow off the North 5fC ^)HI ))v) ^^r lrn C®I ^n1C--l c.m "r t nl i^o) i^n1Ca 'It's mesmeru,ng, because they are so at haene in their natural environment lank , drives inour clr imateeenl Every step you take there is somethmy different anti absorbing ' `lu o ^( off, lu,mxc(oyn tyo^ Co^nnlll^^N ©I l r1tCoN^m ,o^`r " I oafing with in our e.ru+lMS economic gone or oar baondasm, ndt A big part of the appeal for Wilson lies with his hope that this going to answer the questlo is We have to gat out there to investigate and euhoordulary throng of penguins albatross and sooty shealwalel, fur IInXOl understood I^6ligx,4, seals sea lions and southern right whale, may hold a key to one of Ale most burning questions on the planet today how will the Antarctic -and 'We need to understand the components of the engine that drives the rara^ s " rylll ",,m , .Jollnhd, ultimately the lest of the globe cape in a wormer worldz global climate system - n.e, ocean and atmosphere • in Antarclica and the Southern Ocean, and at the wine lime monitor them as they change " Wilson wants to help find an answer through his dual roles -as head of ^-4& nvA'o' ?Ik l )% 441 Morme Science at the University of Ologo, and director of the recently Wilson esplouns that one of ilia best ways to monitor change is created Now Zealand Antarctic Research Institute to study an ecosystem , to set up an observation point in the most r n , , A1^ 11D lE \, I sensitive spot That spot is not within Antarctica itself, but on the The institute was launched lost year, through a $5 3 million donation ^'IL JJu 'rr ISL 0,41) • I. ILAllctllllll C 46mnnq yea,Ns:mhwrto, 1 17 margin where Antarctica interacts with the rest of the world He estimates New Zealand needs to spend $12 million a year 'The Sob Antarctic is the place to go.' Wilson says, and the on our scientific research effort (that,s in addition to the logistics hotspot of brodrversry is the Auckland Islands costs of mounting the research expeditions( in Antarctica tire Sub- 'It's no surprise that it's also home to a number of iconic species Antarctic and the Southern Ocean to reach effective decisions that we associate with Antarctica penguins, wholes, sea lions, the lunders may be from the government - who have a wide albatross, the list goes on And that's lust the big stuff you con range of interests in Antarctica, from science to foreign affairs - or hold and cuddle ' corporate sponsors and foundations, who 'are also very muds Wilson s plan is to set up a research station where a long-term focused on this uncertainty of change for humanity' study of the birds and animals of the SubAntorclic con be carried •I 'The challenge of the Antarctic, SubAntarctic and whole marine « x rr^ ^ out yoar+ound to determine what is natural vanabrhty, what is seasonal variability and what differences in the ecology are realm, is that it lakes a big team of people and a lot of money based on climate change to really make a difference II you want to answer the scientific err •. questions that are big challenges for Now Zealand and mankind r. "1 think we're about a year away from putting all the elements ., v we head forward into this worming world, you have to embrace in place The biggest challenge is money - the cost to build a as research station is $1 million, and about $1 million a year to the foci that you have to work on that scale,' Wilson says keep it running year round Two weeks of measurements every 'It's not so much about the size of the region, but the potential January won't answer your questions,' he says impact it has on the rest of the globe' Wilson is a committed scientist and researcher at heart, a former lecturer or the Uninorsiy of Oxford and research follow at Wilson would be Iho first to acknowledge that climate change is Wolfson College, he has made more than 20 expeditions to the a complex problem But he wants to meet the challenge of Antarctic and Sub-Antarctic. and his roscorch programmes have fndmg things that everyday people con associate with to roll drown more than S20 million in grants up their sleeves and make a difference 'It's part of my strategy But he also realises that his leadership and development skills, to find those avenues, so that Kiwis of all backgrounds, jabs and honed through that work, are in demand In 2006, Wilson was interests can engage with what we are trying to do ' tin says recognised as a Bioko Leader through his effort to bring together it requires some kind of crystallisation, which Sir Peter Blake was the multinational Andrill (Antarctic Drilling) project so good at He engaged a nation in winning a race, and they the New Zealand Antarctic Research Institute, As director of backed putting New Zealand on the global mop That's the very Wilson was it as his role to load the community to to" the some task we have in front of us with respect to climate, ocean questions around climate change and environmental change ' 'I love my tab It requires the development of strategy, lining up And that's why Now Zealand has a leadership role to play fenders, helping to develop the science cow and the methods and in the globe's future "We have a history of working in the implementation plans for answering those questions,' he says Ross Sea region, a longstanding connection as a nation with 'It's an opportunity to build a really important programme for the Antarctic, and we have some of the best polar scientists the country II exorcises my best skills, which I think are an in the world the strategic and planning sides, developing the vision, and engaging people to commit and deliver it I got to shape things 'We are also well positioned to actually load the way in terms of but not necessarily be at the coollace doing it' understanding because of where we sit on the planet • n 0 Antarctic . Research Institute New Zealand Antarctic Research Institute Management Report Statement of financial performance for the 12 months ending 30 June 2013 Paid by as per Letter of Understanding Actual Budget Variance Antarctica YTD Jun YTD Jun YTD Jun New 2013 2013 2013 Zealand NZARI Grant Revenue 700,200 700,000 200 700,200 Gifted Services from Antarctica New Zealand 67,102 103,635 (36,533) 67,102 Interest Received 14,702 18,040 (3,338) 14,702 Revenue 782,004 821,675 (39,671) 0 782,004 Director Salaries 105,416 115,000 9,584 105,416 Recruitment Permanent 7,139 7,200 61 7,139 Personnel 112,555 122,200 9,645 7,139 105,416 Postage 0 600 600 0 Telephone/Fax Tolls 550 1,800 1,250 550 Website Charges 5,359 7,835 2,476 5,359 Entertainment 1,112 2,400 1,288 1,112 Science Development Functions 63,896 104,000 40,104 63,896 Stakeholder Functions 3,938 4,300 362 3,938 Director's Travel Domestic 21,920 18,600 (3,320) 21,920 Other Travel Domestic 3,160 4,000 840 3,160 Director's Travel International 9,180 30,000 20,820 9,180 Communications/Travel 109,115 173,535 64,420 12,457 96,658 Trustees Travel - Domestic 7,022 10,000 2,978 7,022 Trustees Travel - International 16,790 23,500 6,710 16,790 Trustees Fees 36,000 36,000 0 36,000 Trustees Expenses 1,471 2,000 529 1,471 Board Expenses 1,071 3,000 1,929 1,071 Trustee Expenses 62,354 74,500 12,146 26,354 36,000 Misc Services and Contracts 616 2,000 1,384 616 Winter School 0 3,000 3,000 0 International Science Panel Honoraria 0 4,500 4,500 0 Insurance 1,999 1,900 (99) 1,999 Printing/Publications 6,383 18,400 12,017 6,383 Professional Fees - Legal 6,532 13,800 7,268 6,532 Professional Fees - Audit 2,500 2,500 0 2,500 Professional Fees - Consultant 2,520 1,300 (1,220) 2,520 Services & Contracts 20,550 47,400 26,850 20,550 0 Purchasing General 374 1,200 826 374 Bank Charges 229 100 (129) 229 Purchasing General 603 1,300 697 603 0 Subtotal Income 782,004 821,675 (39,671) 0 782,004 Subtotal Expenses 305,177 418,935 113,758 67,102 238,075 TOTAL BUDGET SURPLUS 476,827 402,740 74,087 (67,102) 543,929 Page 22 Antarctic Research Institute New Zealand Antarctic Research Institute Budget 2013/2014 runcuundU dIUdD - anv..m Uau 1 SUPPORT funds available 2013/2014 $500, 000 $ 1 . 000, 000 157 000 $300, 000 $274, 775 $24, 700 2. 2 6475 Aotearoa Aotearoa Air NZ Air NZ Antarctica Investment Foundation Foundation New Zealand New Zealand New Zealand Income Total 2012/2013 2013/2014 2012/2013 2013/2014 2013/2014 2013/2014 $NZ EXPENDITURE carried forward carried forward Operational Director 175,000 Remuneration 175,000 Travel (domestic and international ) 19,000 20,000 17,000 56,000 3,200 Other Director costs 3,200 60,000 60,000 • Deputy Directors (2 x 0 25 FTE) (Oct - Jun) 60,000 Research Advisor (1 0 FTE) (Oct - Jun) 60,000 70,000 Support staff (Antarctica New Zealand ) (1 0 FTE) 70,000 General administration (0 20 FTE) Finance (0 25 FTE) Outreach and communication (0 25 FTE) IT (0 20 FTE) Governance & legal (0.10 FTE) Board 36,000 Trustee fees 36,000 35,500 Travel (domestic and international ) 35,500 3,500 Other Board costs 3,500 4,500 International Science Panel honoraria 4,500 29,775 Other operational costs 29 ,775 533 ,475 TOTAL OPERATIONAL 230 ,000 20 , 000 258 ,775 24 , 700 Research Research meeting support 70,000 30,000 100,000 Research project support (13/14) 400,000 100,000 500,000 Research project support (14/15) 400,000 100,000 500,000 Research programme support 50,000 300,000 50,000 30,000 430,000 100,000 Post Doctoral research support 100,000 50,000 50,000 International research participation f1 J' TOTAL RESEARCH 500 ,000 770 , 000 150 ,000 260,000 1 ,680 . 000 Outreach Printing and publications 11,000 11,000 Website 5 ,000 5,000 Winter School ( preparation for 14/15) 20,000 20,000 TOTAL OUTREACH 20 , 000 16 ,000 36 . 000 TOTAL NZARI EXPENDITURE 500 ,000 1 000 000 150 ,000 300 ,000 274,775 24 ,700 2 , 249 , 475 SURPLUS A VAILABLE FUNDING 7, 000 7, 000 Page 38 nut ^i^'^^^ T r r ^• j't(S^'^ 11 `t, It Cl i'^ ^^`) ^4 ' jj,.^ •^l^ ^ r ^ - ^ Y^ , /SIB ;^^^^Si1 • ,t b ^^ ^ ^{v'^ 4kj. ., 1 ^ r t ,^)^ ^y 4 ) t . ^\^^ J,,,9iiir I r 1 it i './^l^f1^ ^t, r , p: 1 r Jr ^A , • ' ^^, ' y ' ~• 1, I t, e 0 Y.• , • t uY. ^I 1 oe, i gip.,. 1rjj^^,^ y`,. [ , ^• "", • ^^ `i ;fit ^, y. •; ^- i"'-- +^^ .i^ IWO tit ^^ cf•i i^ y^,eo ` r L' t t. ' X11 ^' , . \ 41 "'` •+S^ ^^ „,A iLL'`,4 , ^ ^ ^f^S t ^ ,^ ^S'l ^ ^^1 `•t ! ^ S •iti 'tY ' 1 `, E ^ ,'^:fd^st - ` ^1' t,' ^ :^ f^^ A !'; J -*sf`. ^' ,•i r ^ it ^t . tk' t4 A a 7/ Cover Meltwater patterns on the lower Koettlitz Glacier with Mount Discovery in the distance ©Andns Apse Antarctic Research Institute 0 0 4 The Board of Trustees of the New Zealand Antarctic Research Institute Nz TRUSTEES' are pleased to present the annual report for the New Zealand Antarctic STATEMENT OF Research Institute for the year ended 30 June 2014 z RESPONSIBILITY The financial statements have been prepared in accordance with the c statement of accounting policies on page 36 and comply with the r- charity 's Trust Deed m v 0 The Board of Trustees accept responsibility for' the preparation of the financial statements and for the o judgements used in them, and • establishing and maintaining a system of internal controls designed to provide reasonable assurance as to the integrity and reliability of financial and non-financial reporting. In the opinion of the Board of Trustees, the annual financial statements for the year ended 30 June 2014 fairly reflect the financial position, operations and cash flows of the New Zealand Antarctic Research Institute &Wd SLIrl, Rob Fenwick CNZM KNZM, OBE, FRSNZ Chair Trustee 10 September 2014 10 September 2014 • • 5 NZARI Vision and Purpose z CONTENTS 3 N 4 Trustees' Statement of Responsibility D z 6 Chair's Report z c D 8 Director's Report r M 10 NZARI's Structure, Governance and Management a 0 10 Objectives 0 11 Board of Trustees d 13 Staff 14 International Science Panel 18 NZARI's Partnerships for Antarctic Science 20 2013/2014 Achievements 21 Research Highlights 28 New Research Projects 29 Abstracts of NZARI-funded Projects 32 Cape Adare 33 Auckland Islands 34 Bibliography of Publications 35 Financial Statements and Statement of Accounting Policies 44 Independent Auditor's Report 46 Directory • is s 6 Z N CHAIR'S REPORT /0 D Z Z C r m v 0 0 A Into its second year, the meeting was the inspiration New Zealand Antarctic Research of Professor Chuck Kennicutt, Institute is fulfilling its promise our indefatigable trustee and of facilitating ground-breaking former president of the Scientific science with its intention to launch Committee on Antarctic Research, two collaborative programmes of and was arranged by SCAR's new research to investigate the International Committee It is vulnerability of the Ross Ice Shelf the first time such a meeting has and to set up a critical ocean and taken place The participants were climate monitoring point at tasked with looking out 20-50 Cape Adare years to predict what the Antarctic and Southern Ocean environment In April 2014, New Zealand hosted might look like and where we the first Antarctic Horizon Scan, should be focusing our research which brought seventy leading effort to test our hypotheses. Antarctic and Southern Ocean scientists to Queenstown The The meeting was timely .ti 7 z N Z Z C 'c.`'Rar r m U 0 0 A _'^'t' -_ "`^_ ''--_ - - - _^ -_--^ ^_ _ - - - --r-_ ^_ __ -- _ - - - - - +.^..^..^Lt'+'^y_^^_ tom- ^`-v ^ tiri^_ _. _-• ---^-• ^• ~- ~-L^ __ ^ Lim _ ^-^ -'''- • _ _- _. _ •^- _ Megafauna family picture Killer whales, Weddell seals, and Adelie penguins seen from Scott Base © Regina Eisert Recent reports show that warming impacts on New Zealand from Scott Base to include new science and loss of West Antarctic ice is ocean and climate processes We facilities, which will be pivotal now inevitable and we are facing are hopeful of new collaborative in lifting our Antarctic research difficult scientific questions about programmes to investigate these capability how fast this will happen and processes as they play out in the where will it stop One paper Deep South I wish to thank my fellow trustees confirms Antarctica still has plenty for their significant support and of surprises - the shape of bedrock We are indebted to the Aotearoa close interest and I congratulate our beneath parts of East Antarctica Foundation and Air New Zealand director Professor Gary Wilson for means that should the edges for their support We also an outstandingly successful year retreat over the sill, vast parts of greatly appreciate the support the ice sheet may also quickly of Antarctica New Zealand retreat allowing us to deliver our research programmes in some very hostile NZARI is progressing with its land- and seascapes Antarctica partners in the Deep South New Zealand is embarking on a Rob Fenwick CNZM Science Challenge, concerned with refit of the Hillary Field Centre at Chair • • 8 funding Z We welcomed our Research In its second round of N DIRECTOR'S Advisor, Dr Nicole Stahlmann in NZARI will provide $501,489 to z REPORT January 2014 Nicole has been support another seven projects looking after NZARI Requests for to understand how Antarctica will Z z Proposals, handling the peer review respond in a changing climate C with our International Science Panel With a 23% increase in applications, r and finalising research contracts the selection process was highly M with the research organisations competitive The seven projects a 0 with successful proposals She is were chosen from 37 applications also helping us with our ongoing through a rigorous peer-review 0 fundraising to expand the science process that involved 30 expert A we can support reviewers under the guidance of the International Science Panel Our first tranche of NZARI The funded projects include proposals are well underway. researchers from four New Zealand Three of the projects undertook Universities (Canterbury, Victoria, Antarctic field research in the Otago and Waikato), three Crown 2013/2014 summer season with Research Institutes (GNS Science, collaborating scientists across NIWA and Landcare Research) New Zealand institutions and from and two private research agencies research institutions in Australia, (Bodeker Scientific and Geomarine Canada and Spain Highlights Research). The research teams from those projects included the also include collaborators from application of quantitative genetic Germany, USA, Great Britain, experiments to understand the Australia, Denmark, Canada, South adaptability of marine invertebrates Korea and Switzerland. A further to the acidifying ocean and new $1,172,780 has been contracted in documentation of toothfish co-funding from our partnering consumption by killer whales research organisations to achieve Professor Tim Naish's project to new NZARI science projects document polar amplification launched this financial year (greater rates of warming in the polar regions) is nearing In 2014, we launched a request publication Tim has just been for programmatic research announced as the 2014 Martha T. proposals for collaborative research Muse Prize winner for Science and programmes on the "Vulnerability Policy in Antarctica and NZARI of the Ross Ice Shelf in a Warming warmly congratulates him on this Globe " Programmes must include accolade at least three New Zealand research 0 0 9 z N D z z C r m v 0 0 A Jess Ericson examining sea urchin embryos in Scott Base wet lab © Miles Lamare organisations in addition to any continue to grow with visits It was a pleasure to spend a few international collaborators Funds to South Korea to work on precious days with our future requested are up to $290,000 collaborative research along the leaders Their commitment is (excl. GST) per year for up to Northern Victoria Land coast and inspirational even when it rains so three years We also launched a a visit to the South African National hard that it feels like someone is pilot project to understand the Antarctic Programme where I tipping a bucket of water on your feasibility to undertake a long term gave a keynote address on head all day long' ecological research and monitoring NZARI activities to their annual programme at Cape Adare Antarctic meeting Cape Adare is the closest point to the Ross Sea Slope and Shelf and I also had the pleasure of being with its 450,000+ breeding involved in the Young Blake pair colony of Adelle penguins Expedition to the Auckland Islands provides a unique opportunity to to conduct preliminary site surveys S bv(4-- measure changes in the Ocean with a view to the establishment 10 surrounding Antarctica of a base for the first ongoing Gary Wilson scientific research programme in Director Our international collaborations the New Zealand Subantarctic • Cape Evans Drilling and fishing for benthic notothenioid fish @ Mike Barker 10 Established as a charitable partnerships with organisations to NZARI"S trust on 5 March 2012, NZARI is deliver outcomes and support and STRUCTURE, incorporated under the Charitable encourage new Antarctic scientists Trusts Act 1957 (NZ) and registered z GOVERNANCE AND as a charitable entity under the The Board of Trustees has also Charities Act 2005 (NZ) appointed an International Science D MANAGEMENT Panel (ISP) whose role includes M The Board of Trustees has peer reviewing the NZARI science U O appointed a Director whose programme to ensure it meets role includes directing the international best practice and 0 implementation of research, carrying out triennial reviews of the A ensuring delivery of science effectiveness and outcomes of the outputs and developing NZARI science programme The purpose of NZARI is to operate 5. Facilitating applied OBJECTIVES as a virtual, multi-disciplinary environmental research research institute dedicated to that supports Antarctic Antarctic and Southern Ocean environmental management research including, without outcomes, limitation, through 6. Communicating effectively to 1 Delivering research on the public and stakeholders Antarctica's terrestrial and on Antarctic and related marine ecosystems, environmental and climate science issues; 2 Delivering research on Antarctica's cryosphere, 7 Attracting new, and supporting atmosphere and lithosphere; existing, capability in Antarctic research, and developing 3. Providing new knowledge of ongoing research and the impact of global change education on Antarctic-related on Antarctica and Antarctica's matters: and impact on global change; 8. Enhancing international 4 Increasing understanding relationships and partnerships of Southern Ocean physical with research organisations processes, and Antarctic programmes 0 0 11 ROB FENWICK CNZM (Chair) z BOARD OF Rob Fenwick is the Chairman of Antarctica New Zealand He is an N TRUSTEES experienced businessman and company director with interests closely aligned to promoting sustainable development. He has had a long Z association with Antarctica- for nine years until 2007 he was a Director z and later Chairman of Landcare Research, one of several Crown C Research Institutes involved in Antarctic research, and is a former M Chairman of the Antarctic Heritage Trust In 2005 the New Zealand m V Geographic Society named the Fenwick Ice Piedmont in the Ross Sea for 0 xl his work in Antarctica O SIR DAVID SKEGG KNZM , OBE, FRSNZ A Professor Sir David Skegg is one of New Zealand's most distinguished scientists and is recognised internationally for his work in epidemiology He was knighted in 2009 for services to medicine Sir David is the i President of the Royal Society of New Zealand After graduating from Otago and Oxford universities, he was a lecturer in epidemiology at the University of Oxford In 1980, he returned to New Zealand to take up the Chair of Preventive and Social Medicine at Otago. From 2004 to 2011 he was the Vice-Chancellor of the University Sir David is a former Chair of the Health Research Council, the Public Health Commission, and the A.,M Universities New Zealand Research Committee. He was the foundation Chair of the New Zealand Science Board, and currently chairs a research committee for the World Health Organisation in Geneva PROFESSOR MAHLON CHUCK KENNICUTT II Chuck Kennicutt is Professor Emeritus of Oceanography at Texas A&M University He was a member of the U S Department of State delegation to the Antarctic Treaty from 2002-2007, US Delegate to the Scientific Committee on Antarctic Research (SCAR) from 2003-2012 and ex officio member of the U S Polar Research Board from 1998-2014 He served as a Vice President (2004-2008) and President of SCAR (2008-2012) and led the first SCAR Antarctic and Southern Ocean Science Horizon Scan in 2014 Professor Kennicutt was named a National Associate of the U S. National Academy of Sciences for life, awarded the Antarctic Service Medal of the U.S. Antarctic Program and a geographic feature was officially named Kennicutt Point in 2006. • 12 z CRAIG HEATLEY CNZM N Craig Heatley is one of New Zealand ' s most successful entrepreneurs A and was winner of the Ernst & Young Entrepreneur of the Year award > for 2012 After a number of innovative start up companies, he launched z Sky TV in New Zealand in 1988 which is now the country 's largest media D organisation He now oversees a broad range of family investments, principally in Australasia, Asia and North America Craig is a board member of the New Zealand United States Business Council Through the ma O auspices of the Heatley Community Trust, Craig has been the principal X catalyst for establishing numerous philanthropic endeavours He is a o current member of the Committee of the prestigious Augusta National A Golf Club in the United States PROFESSOR MARY O'KANE Professor Mary O'Kane is the New South Wales Chief Scientist & Engineer and also a company director and Executive Chairman of Mary O'Kane & Associates Pty Ltd, a Sydney-based company that advises governments, universities and the private sector on innovation, research, education and development She is also Chair of the Board of the Institute of Marine and Antarctic Studies at the University of Tasmania, Chair of the Development Gateway based in Washington and the Development Gateway International based in Brussels, Chair of the Cooperative Research Centre for Spatial Information, and a Director of Business Events Sydney, National ICT Australia Ltd, and the Capital Markets Cooperative Research Centre. Mary was Vice-Chancellor of the University of Adelaide from 1996 to 2001 13 Z NZARI STAFF N PROFESSOR GARY WILSON Gary Wilson is Professor of Marine Science at the University D of Otago and also holds an adjunct position in the Geology z Z Department Before coming to Otago he lectured at the University C of Oxford and held a research fellowship at Wolfson College r the Gary has participated in and led more than 20 expeditions to m Antarctic and Subantarctic supported by the New Zealand and -u 0 United States Antarctic Programmes His collaborative research programmes have attracted more than $20 million in research 0 more than 80 scientific papers in peer grants and resulted in A reviewed journals He has held the Byrd Fellowship at The Ohio State University, the Blaustein Visiting Professorship at Stanford University and in 2006 he received a Sir Peter Blake Leadership award for his role in bringing together the multinational team for the ANDRILL project, which he chaired between 2004 and 2009 DR NICOLE STAHLMANN Nicole Stahlmann has extensive experience directing cross- disciplinary research programmes Prior to joining NZARI in 2013, she spent five years as the Director of Fellowship Programs at the American Council of Learned Societies, where she oversaw a large portfolio of initiatives to support individual and collaborative research Concurrently she held an adjunct professorship in the Department of Media , Culture, and Communication at New York University Between 2001 and 2008, she directed the Fellowships Office at the Social Science Research Council in New York. Nicole received a Ph D. from the Johannes Gutenberg University-Mainz (Germany), was a graduate scholar at Columbia University (U S ) and an Erasmus scholar at the Rijksuniversiteit, Gent ( Belgium) s • 14 The International Science Panel (ISP) peer- review the science strategy and Z INTERNATIONAL N programme to ensure that it represents international best practice and SCIENCE PAN EL advise on multi-disciplinary and international opportunities The ISP will D also carry out a three yearly review of the effectiveness and outcomes of Z z the NZARI programme C D r PROFESSOR MAHLON CHUCK KENNICUTT II (CHAIR) m v Chuck Kennicutt is a member of the NZARI Board of Trustees and 0 chairs NZARI's international Science Panel He is Professor Emeritus of Oceanography at Texas A&M University 0 A PROFESSOR PETER BARRETT Professor Barrett is Professor Emeritus of Geology at Victoria University of Wellington where he is a founding member of the Climate Change Research Institute. He has received numerous awards in recognition of his Antarctic research including the Marsden Medal by the New Zealand Association of Scientists (2004) the SCAR President's Medal for Outstanding Achievement in Antarctic Science (2006) and the New Zealand Antarctic Medal (2010) PROFESSOR STEVEN CHOWN Professor Chown is the Head of the School of Biological Sciences at Monash University in Australia He has worked on Antarctic terrestrial and marine ecosystems and their constituent species for the past 25 years. Much of his research has been taken up in conservation policy in the region. In 2009, Professor Chown was awarded the first Martha T. Muse Prize for Science and Policy in Antarctica, and in 2014 he received the SCAR Medal for Excellence in Antarctic Research. • • 15 DR JANE FRANCIS z Professor Francis is the Director of the British Antarctic Survey She N was a Professor of Palaeoclimatology and Dean of the Faculty of Environment at the University of Leeds, UK. She is Chair of the UK D Z National Committee for Antarctic Research and recipient of a UK Polar z C Medal Her principal research interests include palaeoclimatology and D palaeobotany. Professor Francis' work focused on understanding past r climate change during both greenhouse and icehouse periods in the m v geological past, in both the Arctic and Antarctica 0 DR YEADONG KIM 0 A Dr Yeadong Kim is the President of the Korean Polar Research Institute (KOPRI) and was a principal research scientist in geophysics at KOPRI He was the project manager for the construction of the Korean Antarctic station, Jang Bogo, which opened in February 2014 at Terra Nova Bay Dr Kim was the president of the Korean Geophysical Society from 2004 to 2007 and is a current SCAR Vice President PROFESSOR W. BERRY LYONS Professor Lyons is currently the Director of the School of Earth Sciences at the Ohio State University, and former Director of the Byrd Polar Research Center. He is a Fellow of the Geological Society of America, ;F 1 American Association for the Advancement of Science and American Geophysical Union Professor Lyons was the lead investigator (and is still an active member) of the McMurdo Dry Valleys Long Term Ecological Research program funded by the National Science Foundation. . 0 __ 16 OLAV ORHEIM Z DR N Dr Orheim was Director of the Norwegian Polar Institute for more than a decade and subsequently Executive Secretary for the International Polar Year Secretariat He was the Vice President of SCAR, chaired many Z z meetings within the Antarctic Treaty system and was the first Chair C for Environmental Protection He has more than 80 D of the Committee r publications covering glacier mass balance and climate, ice dynamics, M remote sensing, and politics of the polar-regions. In 2007 he was U 0 knighted under the Royal Norwegian Order of St Olav 0 DR STEVE RINTOUL A Dr Rintoul is a Commonwealth Scientific and Industrial Research Organisation (CSIRO) Fellow at the CSIRO Marine and Atmospheric Research facility in Hobart, and leader of the Oceans program at the Antarctic Climate and Ecosystems Cooperative Research Centre He is a recipient of the Australian Antarctic Medal and internationally recognised as a leading authority on the circulation of the Southern Ocean and how it affects global climate systems. Dr Rintoul was awarded the 2012 Martha T Muse prize for Science and Policy in Antarctica and is a Fellow of the Australian Academy of Science PROFESSOR DIANA WALL Professor Wall is the director of the School of Global Environmental Sustainability, a University Distinguished Professor of Biology and Senior Scientist at the Natural Resource Ecology Laboratory at Colorado State University She is the recipient of the 2012 SCAR President's Medal for Excellence in Antarctic Research and the 2013 Tyler Prize for Environmental Achievement. Her research interests include how soil biodiversity contributes to healthy, productive soils, and the consequences of human activities on soil sustainability P NZARI ANNUAL • 0 • 0 - 18 Z N NZARI'S D PARTNERSHIPS D Z FOR ANTARCTIC CZ D r SCIENCE m a 0 Collecting seal faeces to determine diet ©Drew Coleman O NZARI works with a range • A pilot to investigate of researchers and research establishing a Long Term providers, funders and supporters Ecological Research (LTER) and Antarctica New Zealand to and Monitoring programme at develop the best partnerships to Cape Adare address the most challenging of NZARI also provides support scientific questions. for scientists to participate in Each year, NZARI calls for international research workshops proposals for short term research NZARI leverages every projects to address critical dollar invested to support its questions identified by the NZARI researchers and research goals science strategy and science through institutional co-funding workshops NZARI will provide and logistics support through up to $100,000 for each project Antarctica New Zealand and seek logistical support from Antarctica New Zealand In 2013 and 2014, NZARI research to make field observations and programmes formed research measurements NZARI projects partnerships between 11 countries should be completed within two Australia, Canada, Denmark, years Germany, Japan, New Zealand, South Korea, Spain, Switzerland, As funding is available NZARI will the United States and the United also launch targeted longer-term Kingdom multi-institution interdisciplinary programmes. In 2014 we launched two such programmes. • Vulnerability of the Ross Ice Shelf in a Warming Globe 0 -- 19 z 1 1 N D m V D I Z Z C D m 0 0 Nick Key with the Draganfly" © Bryan Storey 1 0 NZARI science is funded by the following partnerships: A 2013 -14 2014-15 NZARI Grants $499,699 $501,489 NZARI Workshops - $30,892 Canterbury University $408,960 $763,522 University of Otago $39,686 $229,909 University of Waikato $247,766 $25,483 Victoria University of Wellington $17,785 - GNS Scientific $276,000 $146,216 Bodeker Scientific $45,000 $7,650 Antarctica New Zealand logistics $1,135,333 - Total $2 , 670,229 $1,705,161 not yet allocated for season 2014/2015 10 • 20 Continued efforts to establish Z During its second year of N 2013/2014 operations, NZARI has a long-term monitoring station on the Auckland Islands and ACHIEVEMENTS Funded a second tranche of the building of a research seven short-term research Z station through partnerships Z projects (selected from 37 c with the Department of D proposals) to understand how r Conservation, NIWA, and the Antarctica will respond in a M Sir Peter Blake Trust v changing climate The projects 0 were given national and Raised awareness of international coverage through Antarctica's crucial role in 0 the New Zealand Herald and the climate change debate A Air New Zealand's inflight through media engagement KiaOra magazine with Radio New Zealand, New Zealand Herald, Sunday Enabled several New Zealand- Star Times, Otago Daily Times based researchers to attend and Leadership magazine international science meetings and supported a workshop Developed new collaborative on the creation of INTERACT plans with the Korean Polar the International Network for Research Institute, the South Tracking Ecological Responses African National Antarctic in Antarctic Coastal Time-series Programme, Russian Academy of Sciences and ongoing • Hosted a series of partnership with the US workshops that led to the Antarctic Program conceptualisation and writing of the proposal for the successful "Deep South" Science Challenge Initiated a collaborative research programme on the "Vulnerability of the Ross Ice Shelf in a Warming Globe", which will bring together a large part of the New Zealand Antarctic science community on an integrated science programme over a three- year cycle. 21 The polar amplification project worlds This is of concern as the z RESEARCH plans to publish two multi- Arctic north of 60 degrees has N D HIGHLIGHTS authored review papers which warmed twice as fast as the global build on the syntheses in the latest average in response to recent D z Assessing past , present and IPCC 5th Assessment Report anthropogenic emissions, while z C future polar amplification The first will be led by Cecilia the Antarctic as a whole is yet to D Bitz, University of Washington display an amplified temperature r Professor Tim Naish, Antarctic M Research Centre - Victoria and is titled "Polar Amplification response This is because present M University of Wellington Since the Industrial Age" and a (transient) warming of the polar 0 proposal has been accepted by regions is moderated by heat Nature Geoscience The second uptake in the polar oceans, and 0 will be led by Tim Naish, Victoria the deeply mixed Southern Ocean A University of Wellington and is is buffering Antarctic surface titled "Paleocllmate Perspectives warming Yet paleoclimate archives on Polar Amplification" and a tell us that bipolar temperature proposal has been accepted by amplification is inevitable and it Nature If both papers survive will will have a major influence on review, the respective editors ice sheet sensitivity and global have agreed to co-ordinate the sea-level rise The question is publication timing We hope to when In these review papers, we have both manuscripts in review in compare our understanding of the September 2014 present transient and longer term changes known from paleoclimate Amplified surface warming in records with the latest climate both the Arctic and the Antarctic model projections of global is a consistent feature of climate surface warming for 2100 and the reconstructions for past high CO, centuries beyond A climate model simulation of surface warming and polar amplification 3 million years ago in response to 400ppm CO,, our s present level of atmospheric CO2 I.^ w ^v r^ .mow J.Y, r 1 LJ • 22 z The adaptive capacity Antarctic marine invertebrates are the capacities of polar marine N of Antarctic marine a bellwether for climate change species to adapt to rapid ocean invertebrates to a warming that is rapidly occurring in polar changes Researchers asked; are D and acidifying Southern marine ecosystems Because the present changes occurring in z z Ocean they provide an early insight polar marine environments faster C D Dr Miles Lamare, Department of into responses of marine species than species can adapt to, and r Marine Science - University of to processes such as ocean is the capacity in polar species M warning and ocean acidification, similar their non-Antarctic v Otago to 0 quantifying their responses is counterparts'? The researchers critical to understanding the compared adaptive capacity of 0 future, not only of Antarctica, but Antarctic species to temperate A oceans globally A research team and tropical species and found supported by NZARI in 2013 and polar species could have a difficult made up of scientists from the time in the future Due to the University of Otago, Australian lack of genetic variation found Institute of Marine Sciences and in response to simulated climate the University of Sydney Research change conditions, some Antarctic used quantitative genetics marine species may have poor experiments to examined a adaptive capacity to persist in a fundamental question What are changing ocean t.? Scott Base wet lab with climate change experiments in progress Experiments are examining adaptive capacity to ocean acidification and ocean warming in the developmental stages of Antarctic marine invertebrates © Mike Barker • • 23 Southern Ocean and Over the past twelve months, cores that were originally z N Antarctic climate response members of our international recovered in the 1970's by the a to high atmospheric CO2 science team have studied Deep Sea Drilling Project These sediment samples from the cores are from drill sites located forcing z Dr Richard Levy, GNS Science Southern Ocean to acquire below major ocean boundaries z C and Dr Robert McKay, Antarctic information about oceanic change that likely shifted in response to r Research Centre - Victoria during a geological period 16 to past climate variability. Biological A m University of Wellington 15 million years ago - the warmest and chemical data obtained from integrated 0 episode of the Miocene Climate these samples will be M. Optimum (MCO) and one of and interpreted during a workshop only two intervals in the past 23 to be held at GNS Science 0 million years when atmospheric immediately prior to the Scientific A CO2 was similar to present day Committee on Antarctic Research concentrations Science team Open Science Conference members met at core repositories in the USA and Japan to collect samples from legacy sediment Dr Yusuke Suganuma (left) and a colleague sampling middle Miocene core from Deep Sea Drilling Project Site 266 at the IODP Kochi Core Centre in Kochi. Japan © Richard Levy • • 24 Model simulations z Response of Bindshadler Ice streams feeding the Ross year or less N Ice Shelf experience cycles of of the ice shelf system indicate D and MacAyeal Ice Stream grounding zone to iceberg stagnation and reactivation that changes of these magnitudes calving events and on century time scales These may be associated with recent Z z implications for future changes appear to represent iceberg calving or ice-stream C Internal thermo-mechanical internal mechanics, which requires D change in West Antarctica. r Professor Christina Hu/be, School variability in ice sheet and ice shelf us to look to additional sources m Surveying - University of Otago system, initiated in the transition of information Fracture patterns v of 0 zone between grounded and observed in Landsat 8 images of floating ice. Here, we investigate the BIS and MacIS confluence, 0 the relatively unstudied outlets of together with the changes in A the Bindschadler and MacAyeal flow, indicate that a lateral margin Ice Streams (BIS and MacIS) using shift is now underway on MacIS visible band imagery from the Such events have been inferred 1980s to the present Both ice observationally and theoretically stream outlets are changing speed but never before observed directly on the order of a few meters per A % Speed change detected at the confluence of BIS and MaciS via repeat feature tracking in Landsat, SPOT, and MODIS imagery Coloured circles indicate locations where repeat measurements were within 500 meters and where the observed rate of change exceeds the propagated error on the calculation m a'n • 25 Assessing and Validating We completed an exceedingly along with comprehensive z Biometrics for Change: successful field campaign for climate, snow coverage, and N Ecoforecasting for Terrestrial the 2013/2014 season with all surface water movement Antarctica experimental and sampling goals information z Professor Craig Cary, ICTAR achieved We leveraged existing z Soil samples for manipulative C (International Centre for Terrestrial logistical resources (K020) CO2 flux experiments in our Dry D Antarctic Research) - University of and deployed two instruments r Valley Simulation Chambers were Waikato deployed in Taylor Valley, m collected We also completed v which will allow us to address 0 sampling for scientific challenge 3 scientific challenges 1 (Sensitivity (Molecular Tracking of Change in of Photosynthesis to Climate 0 Microbial Community Structure) Change) and 2 (Biological and A Physicochemical Sources of Soil CO2 Flux) • MONIDA PAM Fluorometer monitoring photosynthetic activities of six individual samples ( multiple species of lichen and mosses) to gain -are insight on the timing and level of primary productivity across a range of biota • Automated Soil CO2 Observation Platform gathering data on CO2 fluxes across a vertical soil profile Fiona Shanhun (Lincoln University) and Chris Macintyre (St Francis Xavier University) collecting gases being emitted from different depths in the soil for later composition analysis on the south side of Spaulding Pond, Taylor Valley © ICTAR • 26 z A semi-empirical model Our goal was to develop a new and ozone depleting substances. N of the stratosphere in the method to simulate the evolution We have also developed a method Antarctic climate system of the Antarctic ozone layer and to convert simulated ozone Dr Greg Bodeker, Bodeker its coupling to the southern high changes to changes in radiative Z z Scientific latitude climate system We have forcing which are fed back into C subsequently extended that goal the simple climate model thereby r to the global scale but with special coupling the ozone scheme to m treatment for the polar regions the global climate system Our -u 0 To this end we took a state-of- first simulations of global ozone the-art simple climate model and changes are shown in Figure 1 0 incorporated semi-empirical model and we are now in the process A components that produce changes of generating probabilistic in stratospheric temperature and projections of global ozone ozone from core variables within changes using our extended the simple climate model such as simple climate model atmospheric concentrations of CO2 901 40 90i 40 i 32 1 32 60' 60, 24 40 24 16 16 36 0 30, 8 8 S u o a, o S 0: 0 0 S 0' 0 0 d N a N S 8 -8 -30 -16 16 -24 -24 J -60, i 60i -32 -32 -40 1960 1980 2000 2020 2040 2060 2080 2100 1960 1980 2000 2020 2040 2060 2080 2100 Year Year Figure 1 Annual mean zonal mean stratospheric column ozone (SCO) anomalies with respect to 1960 calculated using our extended simple climate model The panel on the left shows a simulation under the RCP2 6 greenhouse gas and ozone depleting substances emissions scenario - a scenario which assumes strong reductions in emissions through the coming century The panel on the right shows a simulation under the RCP8 5 emissions scenario which assumes weak reductions in greenhouse gas emissions • C: 27 Whales , seals and penguins: Killer whales, Weddell seals and evidence for toothfish consumption z killer whales. Together with N Defining functional roles and Adelle penguins occupy the top by D trophic dependencies of key levels in the Ross Sea food web the University of Tasmania, we top predators in the Ross Sea and act as sentinels for the state deployed satellite-linked recorders D z Dr Regina Eisert, Gateway of the ecosystem Killer whales on Weddell seals to study their z C Antarctica - University of and Weddell seals are thought winter foraging behaviour D r Canterbury to feed on toothfish and hence Thanks to support by NZARI and may be affected by fishing Antarctica NZ, our first field season M U We collected penguin and seal was highly successful, and will add 0 xl faeces to determine diet from to our understanding the Ross prey DNA that survives digestion, Sea ecosystem and its response to 0 and samples for stable isotope climate change and fishing. A analysis (a chemical tracer that indicates diet) In January 2014, we conducted a study on killer whales producing rare photographic .POW' Weddell seal instrumented with a satellite- I inked conductivity-time-depth recorder © Regina Eisert 28 Z network between New Zealand rapidly deployed monitoring N NEW RESEARCH research organisations", notes equipment that can provide new PROJECTS Director of NZARI, Professor Gary data for climate models to tracking Wilson the stratospheric balloons to be Z deployed by Google (Project z In its second round of funding C Loon) to provide new internet D NZARI has announced it will The new projects, which are r- connections", explains Professor support another seven projects funded from support NZARI m received from the Aotearoa Wilson. v to understand how Antarctica will 0 respond in a changing climate. Foundation and Air New Zealand, will investigate a wide range of NZARI releases a request for Antarctic environments, especially proposals each year for short 0 With a 23% increase in applications, A around the edges of the Antarctic duration, high impact projects that the selection process was highly continent where margin use innovative new approaches competitive The seven projects its icy interacts with the surrounding to address pressing questions were chosen from 37 applications ocean Researchers will also analyse about Antarctica, its changing through a rigorous peer-review how biota fares in these extreme environment and deciphering the process that involved 30 expert environments they change impacts on ecosystems and wider reviewers under the guidance of as global processes an International Science Panel The funded projects include Four of the projects will undertake researchers from four New Zealand fieldwork in Antarctica this coming NZARI also provides funding Universities (Canterbury, Victoria, season as part of New Zealand's for more targeted collaborative Otago and Waikato), three Crown Antarctic Programme, another will research programmes to Research Institutes (GNS Science, deploy to the Subantarctic using address the major challenges NIWA and Landcare Research) the University of Otago's research facing Antarctica Proposals are and two private research agencies vessel Polaris // Two of the projects currently being reviewed for a (Bodeker Scientific and Geomanne are collecting data by analysing three year effort to investigate the Research). The research teams existing material or by collaborating vulnerability of the Ross Ice Shelf also include collaborators from with other agencies. A particularly as the atmosphere above it and the Germany, USA, Great Britain, exciting new collaboration will be ocean beneath it warms. Australia, Denmark, Canada, South the collection of new stratospheric Korea and Switzerland data from hundreds of long- The cornerstone of NZARI- duration balloons being launched supported research is fostering new Google to provide internet "It's exciting to see our research by collaborative approaches across to remote locations efforts into understanding the access New Zealand and internationally potential impacts of a changing to address urgent but difficult climate on Antarctica expanding "The research programmes are research questions in one of the to include a wide range of using innovative new approaches most hostile and remote, but international collaborators as to gathering data for this difficult vulnerable, parts of our planet well as growing the collaborative research, from inexpensive and 0 0 Retrieving a killer whale biopsy dart from the ice edge © Paul Ensor 29 Stratospheric transport, Mesoscale variability in z ABSTRACTS OF N jets, and a better simulation sea ice thickness, optical NZARI-FUNDED of ozone' s fingerprint on properties and algal Antarctic climate . biomass. D Z PROJECTS Dr Greg Bodeker, Bodeker Scientific Professor Ian Hawes, Gateway Z C Antarctica, University of Canterbury D r Stratospheric transport, in particular barriers to transport, Sea ice is of global significance, M largely determine the distribution playing important roles in ocean 0 of radiatively active gases (e g circulation and the functioning ozone) and their fingerprint on of polar ecosystems However, 0 the warming of the atmosphere inaccessibility of the sea ice A These processes are often not makes it hard to quantify its well simulated in atmosphere - properties at meaningful spatial ocean global climate models scales Autonomous Underwater This year, hundreds of long- Vehicles (AUVs) have the potential duration stratospheric balloons to measure horizontal variability will be flown by Google to in sea ice properties at near provide internet access to centimetre resolution along remote locations We will use the kilometres of track-line, offering balloon position data to reveal a fundamentally new approach in unprecedented detail the to sea ice research Our project transport processes and small- will develop and apply new AUV scale turbulent diffusion processes instrumentation for estimating that are active in the southern some particularly important and high-latitude stratosphere Our spatially variable properties of sea research will add to fundamental ice namely the irradiance below understanding of stratospheric and biomass of algae within the dynamics and its role in the ice Antarctic climate • 30 z Meteorological change in the Impact of a warmer Postglacial changes in the N Ross Sea Region and its link climate on Southern location and intensity of the to Antarctic Sea Ice Trends. Ocean circulation and southern westerly winds, Dr Adrian McDonald, Department of bioproductivity : The early subantarctic Auckland Z Z Physics and Astronomy, University of Holocene. Islands. C D Canterbury Dr Joe Prebble, GNS Science, Dr Christopher Moy, Geology r Dr Giuseppe Cortese, GNS Science Department, University of Otago, m and Dr Helen Bostock, N/WA Dr Marcus Vandergoes, GNS Science a Increases in the area of Antarctic 0 sea ice are a puzzling trend in and Dr Matthew McGlone, Landcare a warming world, especially A group of New Zealand and Research 0 when compared to decreases international researchers will A in the Arctic Unfortunately, investigate the response of The strength and latitudinal climate models have difficulty the ocean between Antarctica position of the Southern in reproducing this Antarctic and New Zealand to the most Hemisphere westerly winds trend which casts doubt on the recent warm period of the early play a fundamental role in predictions Changes in weather Holocene, 12,000-6,000 years influencing New Zealand's climate patterns over the Ross Sea that ago. The early Holocene is and carbon dioxide exchange promotes ice production and the most recent time in which between the Southern Ocean pushes the sea ice away from the southwest Pacific temperatures and the atmosphere. We plan Antarctic coast may be poorly were within the range predicted to reconstruct past changes in simulated in global models for the coming century (2-4°C the winds by applying a suite of and therefore offer a potential warmer than present), thus is an geochemical and fossil proxy solution to modelling this problem analogue for the future climate methods to peat, lake and marine Our research aims to test this in this region. This study will sediment cores collected from possibility and determine whether generate new ocean temperature the Auckland Islands (NZ sub- small scale circulation changes are and primary productivity data of Antarctic) at the centre of the the missing piece in the sea ice the ocean's surface during this present day wind field. Our puzzle warm interval and use this data proposed work will improve to test the output of computer fundamental understanding of generated climate models. how the westerlies drive climate and carbon cycle changes in the Southern Ocean ^7^ E 31 Tidal flexure of ice shelves: Invertebrates on the edge: z N the key to understanding Assessing the Mackay a Antarctic grounding zones. Glacier as an ecotone Dr Wolfgang Rack, Gateway for tracking biological D Z Antarctica, University of Canterbury responses to climate Z C changes. D r Predicting rapid retreat of Professor Ian Hogg, School of m the Antarctic ice sheet and Science, University of Waikato v sea level rise involves fully 0 understanding how ice flows Transitions naturally occur across the transition between between one ecosystem type 0 grounded and floating ice, an and another such as along A area known as the grounding shorelines of oceans or at forest zone Although often inaccessible edges These transitions are for direct measurements, called 'ecotones' and are ideal for continuous tidal bending of ice studying the physical, chemical in this area can be precisely and biological responses to mapped by new satellites The climate changes. This project observed bending pattern holds will focus on assessing the a key to understanding how Mackay Glacier ecotone which ice sheet thickness reacts to sits between two biogeographic warming oceans. A new team of regions at the northern edge international experts will uncover of the McMurdo Dry Valleys important details about ice sheet This project will examine the bending for better prediction of distribution and genetic variability ice flow at the grounding line and among populations of a range sea level changes of invertebrates Using this information we can enhance our capacity to detect subtle biotic responses resulting from climate changes 0 0 ^ ' J t ~.` `^^•x A, 32 z N CAPE ADARE NZARI proposes to establish a D z monitoring point at Cape Adare z C at the northwestern corner of the D r Ross Sea From here, we plan to monitor ecosystems and physical M system in parallel at a regular time- 0 t V^ series, which will allow change may. j^^ in any part of the ecosystem or 0 A physical system to be detected and its causes analysed i t Cape Adare, while traditionally difficult to get to and notorious for its inclement weather, is the obvious place to undertake the Landsat 8 image of Cape Adare and Robertson Bay from January work It is the closest point on Antarctica to the shelf edge and slope; it allows access to The scientific research programme at Cape Adare should include the circumpolar deep water through that we propose to use will be following research focr nearby Robertson Bay, it supports guided by international best a 428,516 breeding pair colony of practice Within the international • Top predators (whales, fish, Adelie penguins, it has a shallow Long Term Ecological Research seals, penguin, flying birds) environment for benthic and (LTER ) programme, a group • Primary productivity (base of ecosystem function studies, and of Principal Investigators lead the marine food web) it has already been identified as each aspect of the research and being at risk for invasive species. monitoring with a view towards • Oceanography (including water integration . The effort will be chemistry/ocean acidification) Cape Adare provides a single- reviewed every five years to allow point reference for defining the it to evolve as necessary both • Coastal Ecology (water-column combined ecosystem and physical by the scientific discovery and and benthic) the changing needs of marine system with annual and inter- • Climate seasonal re-observations, thus protection and changing climates. creating a very powerful and • Soils and terrestrial ecology convincing data time series from Through strategic meetings hosted which to identify and attribute by NZARI, we have identified that a change in any part of the system long-term monitoring programme • • rt, ,'a H: ^j ! '^1 ry ',•'r N - S ` ai -a VA S ., Y ti 10 33 z AUCKLAND N D ISLANDS Architects conceptualisation of the future research station © Cheshire Architects Ltd M Z NZARI recognises the Subantarctic and Subtropical importance of the New Zealand Z C importance of ongoing research ocean fronts and beneath the core Subantarctic and what its oceans, D and monitoring in the New Zealand of the westerly wind belt climate and ecosystems can tell m Subantarctic and has annual us about potential changes to the a 0 funding opportunities for scientists NZARI is leading a proposal New Zealand mainland climate and to work in the region to build a research station on its surrounding seas The station the Auckland Islands, which will comprise accommodation 0 A The Auckland Islands are often will provide an unparalleled (initially for 20), living quarters, referred to as the 'Lost Islands' opportunity to monitor both science laboratories, a boatshed because of the small amount of short and long term variability and floating wharf. The expected knowledge and understanding in atmospheric, oceanic and cost of constructing the station of that part of the world A range ecosystems as they respond and external facilities is $3 million of factors contribute to the to changing environmental A public/private partnership knowledge gap, but the biggest conditions and connect present is proposed for funding the factor is difficulty and irregularity day observations to data sets from construction and running of of access In fact, our knowledge peat, lakes, fiords and offshore the station of Antarctica, although still basins that reach back through limited, is more extensive than our and before the recent increases in As well as an early warning knowledge of the New Zealand atmospheric CO2 opportunity, scientific research Subantarctic from the station will provide the The research station will support environmental data set to support Despite the lack of data and scientists and conservation the future management challenge minimal New Zealand effort in workers on the Auckland Islands, of our iconic Subantarctic species the Subantarctic, international with potential to stage the (sea birds, marine mammals and expeditions and global ocean development Researchers can plants) in a changing environment and climate models and be supported in coastal regions Equally, the dependency of the reconstructions indicate that the and transported up and down the iconic species on their unique Subantarctic front, where the island via a support vessel based environment will allow long-term Antarctic Circumpolar Current at the station Provision will also ecological observations to be connects with the rest of the be made for helicopter support as used as proxies for changing globe, represents a globally required. The Station will provide a environments unique opportunity to document, focus for education and outreach understand and monitor changing activities, particularly through ocean currents and atmospheric the Sir Peter Blake Trust, that will circulation It lies between the better engage the nation in the 0 0 Bodeker, G E, Meinshausen, M, Renwick, J A, Rex, M and Williamson, B E, A semi-empirical model of the stratosphere in the Antarctic climate system, Poster presented at the Sth SPARC General Assembly, 12-17 January 2014, Queenstown, New Zealand, 2014 Brachfeld, S, Pmzon, J. Darley, J, Sagnotti, L, Kuhn, G Flonndo, F, Wilson, G , Ohneiser, C, Monien. D, Joseph, L , 2013 Iron Oxide tracers of ice sheet extent and sediment provenance in the ANDRILL AND-1B drill core, Ross Sea, Antarctica, Global and Planetary Change, vol 110, 420-433 Eisert R Ensor P and CLirrey, P, 201A u.iier...hale,t_d:c; McMurdo Soi, , , Ross Sea, Antarctica, Jan-Feb 2014 Journal of Cetacean Research and Management, SC/65b/SM06 Eisert, R, Pinkerton, M H , Torres, L , Currey, R J C , Ensor, P H , Ovsyanikova, E N, Visser I N , Oftedal, O T 2014 Update on the Top Predator Alliance project, 2013-14 season Killer whales WG-EMM-14/52, Paper submitted to the CCAMLR working group for meeting in Punta Arenas, Chile, July 2014 Hollis, C J , Tayler, M J S , Andrew, B , Taylor, K W, Lurcock, P, Bill, P K , Kulhanek, D K, Crouch, E M, Nelson, C S, Pancost, R D, Huber, M, Wilson, G S, Ventura, G T, Crampton, J S, Schioler, P, Phillips, A , 2014 Organic-rich sedimentation in the South Pacific Ocean associated with Late Paleocene climatic cooling Earth Science Reviews, vol 134, 81-97 34 Kennicutt II, M C, Chown, S L, Cassano , J J, Liggett , D, Peck , L S, Massom, BIBLIOGRAPHY OF R, Rantoul, S R, Storey, J WV, Vaughan , D G, Wilson, T J, Allison, 1, Ayton, N J, Badhe , R, Baeseman , J , Barrett , P J, Bell , R E, Bertler, N, Bo, S, Brandt, PUBLICATIONS A, Bromwich , D, Cary, S C, Clark , M S, Convey, P , Costa, E S , Cowan, D, D DeConto, R, Dunbar, R , Elfring , C , Escutia, C , Francis, J , Fricker, H A, Fukuchi, Z M , Gilbert, N , Gutt, J, Havermans , C, Hik, D , Hosie, G, Jones , C, Kim, Y, Le Z Maho , Y, Lee, S H, Leppe, M , Leichenkova , G, Li, X , Lipenkov, V, Lochte, L, C D Lopez-Martinez , J, Ludecke, C , Lyons, W B, Marenssi, S, Miller, H, Morozova, r- R,Retamales Ricci , C A, Rogan-Finnemore, X) Naish, T, Nayak , S, Ravindra , J, m M , Ropert- Coudert, Y, Samah, A A, Sanson , L, Scambos , T, Schloss, 1. v 0 Shiraishia , K, Siegert, M A, Simoes, J , Sparrow , M D, Storey, B, Wall, D H, A Walsh , J C, Wilson , G S, Winther, J-G, Xavier, J C, Yang, H, Sutherland, W J, 2014 ( in press) A roadmap for Antarctic and Southern Ocean science for the 0 next two decades and beyond Antarctic Science Kennicutt II, M C, Chown, S L, Cassano , J J, Liggett , D, Massom, R, Peck, L S, Rintoul, S R, Storey, J WV, Vaughan , D G, Wilson , T J, Sutherland, W J, Allison, I , Ayton , J, Badhe, R , Baeseman , J, Barrett , P J , Bell. R E, Bertler, N, Bo, S, Brandt . A, Bromwich , D, Cary, S C , Clark , M S, Convey, P, Costa, E S, Cowan , D, DeConto , R, Dunbar, R . Elfring, C, Escutia , C, Francis, J, Fucker, H A, Fukuchi , M, Gilbert , N , Gutt, J, Havermans , C, Hik, D , Hosie, G, Jones, C, Kim, Y, Le Maho , Y, Lee, S H, Leppe , M , Leichenkova , G, Li, X , Lipenkov, V, Lochte , L, Lopez- Martinez, J , Ludecke , C, Lyons, W B, Marenssi , S, Miller, H, Morozova , P, Naish, T. Nayak , S, Ravindra R Retamales , J, Ricci, C A. Rogan-Finnemore , M , Ropert-Coudert , Y, Samah, A A, Sanson , L, Scambos, T, Schloss, I , Shiraishia . K, Siegert , M A, Simoes , J, Sparrow, M D. Storey, B, Wall, D H, Walsh , J C, Wilson , G S, Winther, J-G, Xavier, J C, Yang , H, 2014 Six priorities for Antarctic Science Nature, vol 512, 23-25 Lurcock, P, Wilson, G S, 2013 The paleomagnetism of glauconitic sediments Global and Planetary Change, vol 110. 278-288 Nelson, F E, Wilson, G S, Neil, H L, 2013 Marine magnetic signature of the Last Glacial Maximum and last deglaciation from the Southern Hemisphere Marine Geology, vol 346,246-255 Rex, M, Kremser, S: Huck, P, Bodeker, G , Wohltmann, 1, Santee, M L and Bernath, P, Technical Note SWIFT - a fast semi-empirical model for polar stratospheric ozone loss, Atmospheric Chemistry and Physics 14, doi 10 5194/ acp-5114-6545-2014,2014 Risk D. Lee CK-W. Maclntyre C, Cary SC, First year-round record of Antarctic Dry Valley soil CO2 flux Soil Biology & Biochemistry 66 193-196 doi 101016/ soilbio 2013 07006, 2013 Wilson, G S, 2014 (in press) Chapter 4 - Antarctic Science- A Case for Extending Diplomacy for Science In Patman, R and Davis, L (eds) Science Diplomacy New Day or False Dawn Otago University Press 17pp . . • STATEMENT OF ACCOUNTING POLICIES Reporting entity Interpretations issued that income and are restricted The New Zealand Antarctic are not yet effective and for the purposes of meeting Research Institute (NZARI) was have not yet been early its objectives as specified in established as a charitable trust adopted the Trust Deed Grants and on 5 March 2012 for the purpose Standards, amendments and donations are recognised as of operating as a virtual, multi- interpretations issued that are income in the statement of disciplinary research institute not yet effective and have not comprehensive income when dedicated to Antarctic and been early adopted, and which they become receivable, unless Southern Ocean research NZARI is are relevant to the New Zealand NZARI has an obligation to incorporated under the Charitable Antarctic Research Institute, repay the grant or donation if Trusts Act 1957 and registered include the requirements of the grant 36 as a charitable entity under the or donation are not fulfilled z Charities Act 2005 • The External Reporting Board A liability is recognised to the N has released XRB Al, Accounting extent that such conditions Statement of compliance Standards Framework (For- are unfulfilled at the end of the D period. z The financial statements of NZARI profit Entities plus Public Sector z have been prepared in accordance Public Benefit Entities plus C Interest income D with New Zealand generally Not-for-profit Entities Update) r Interest is recognised as accepted accounting practice This Standard is effective for m income in the statement of v (NZ GAAP) and other applicable reporting periods beginning comprehensive income as it 0 New Zealand Financial Reporting on or after 1 April 2015 The accrues, using the effective Standards as appropriate for objectives of this Standard are interest rate method 0 charitable trusts that qualify for to establish the accounting A and apply differential reporting standards framework for those b) Donated goods and services concessions entities that have a statutory Where goods or services are obligation to prepare general acquired by NZARI for nil or NZARI qualifies for differential purpose financial reports The nominal consideration, the fair reporting on the basis that it does New Zealand Antarctic Research value of the goods or services not have public accountability Institute is likely to be classified is recognised as income in the and is not large as defined in as a Tier 3 entity under the new statement of comprehensive the framework for differential standards The New Zealand income reporting NZARI has taken Antarctic Research Institute advantage of all available has decided not to early adopt Where the goods or services differential reporting exemptions this standard and has not yet are utilised in the operations except for certain disclosure determined the impact of this of NZARI, the fair value of the exemptions transition on the preparation goods or services is recognised and presentation of the Trust's as expense in the statement Basis of preparation annual accounts of comprehensive income as The financial statements have if NZARI had paid for them been prepared on a historical cost Significant accounting directly basis. The financial statements are policies Donated services are not presented in New Zealand dollars The following significant recognised where they cannot unless otherwise stated The accounting policies have been be reliably measured functional currency of NZARI is adopted in preparation and New Zealand dollars. presentation of the financial c) Cash and cash equivalents statements. Cash and cash equivalents These financial statements are include deposits held at call for the period from 1 July 2013 to a) Revenue with banks and other short 30 June 2014 and were approved Grants and donations term, highly liquid investments, by the Board of Trustees on 10 Grants and donations are the with original maturities of three September 2014. primary source of NZARI's months or less. • • STATEMENT OF ACCOUNTING POLICIES d) Receivables g) Income Tax Receivables are recognised NZARI is registered as a in the statement of financial charitable entity and is exempt position at their nominal from income tax value which is considered a Financial assets and liabilities reasonable approximation of h) NZARI party to financial their fair value due to their is instruments part of its short term nature as normal operations. These e) Accounts payable and financial instruments include accruals bank accounts, interest Creditors and other payables receivable and accounts 37 payable and are shown in are recognised in the z statement of financial position the statement of financial N D at their nominal value which position. Income and is considered a reasonable expenses arising from these D z approximation of their fair financial instruments are z value due to their short term recognised in the statement C nature of comprehensive income r Bank account deposits are m 0 f) Goods and services tax short term, highly liquid and 0 (GST) held with high quality financial NZARI is registered for GST institutions Receivables and 0 purposes All items in the payables are short term in A financial statements are stated nature exclusive of GST except for receivables and payables, i) Foreign currency which are stated on a GST Foreign currency transactions inclusive basis. Where GST is are converted into local not recoverable as input tax currency at the exchange rate then it is recognised as part of on the date of transaction. the related asset or expense j) Judgements , estimates and The net amount of GST assumptions recoverable from, or payable The preparation of financial to, the Inland Revenue statements in conformity Department (IRD) is included with NZ GAAP requires as part of receivables or judgements, estimates and payables in the statement of assumptions that affect the financial position. application of policies and reported amounts of assets The net GST paid to, or and liabilities, income and received from the IRD, expenses. The estimates and including the GST relating associated assumptions are to investing and financing based on historical experience activities , is classified as an and various other factors that operating cash flow in the are believed to be reasonable statement of cash flows in the circumstances. Actual results may differ from these Commitments and estimates. contingencies are disclosed exclusive of GST. • STATEMENT OF COMPREHENSIVE INCOME Note 2014 2013 NZ$ NZ$ Revenue Interest income 21,135 14,702 Grants and donations 1,210,814 700,200 Donated goods and services 1 167,933 67,102 Total revenue 1,399,882 782,004 38 z N Expenditure 105,417 D Personnel costs 282,609 z Operating expenses 2 1,217,249 200,515 z c D r Total expenditure 1,499,858 305,932 m v 0 Net operating surplus/(deficit) ( 99,976 ) 476,072 0 Other comprehensive income - - A Total comprehensive income (99,976 ) 476,072 The accompanying notes form part of these financial statements. STATEMENT OF CHANGES IN EQUITY =0Z"i;-_«fx5'. -,- T,-DBOO:'L1.1:20,_ Note 2014 2013 NZ$ NZ$ Trustees' equity balance at beginning of year 644,331 168,259 Total comprehensive income (99,976) 476,072 Trustees ' equity balance at end of year 544,355 644,331 The accompanying notes form part of these financial statements. • • STATEMENT OF FINANCIAL POSITION ',S 2,1 ^O -U1 -'O ^ , Note 2014 2013 NZ$ NZ$ Trustees equity 544 , 355 644,331 represented by. Current assets Cash and cash equivalents 3 1,087,886 657,378 Debtors and other receivables 4 25,653 17,698 39 Total assets 1 ,113,539 675,076 z N M Current liabilities Z Creditors and other payables 5 569,184 30,745 Z D r Total liabilities 569,184 30,745 m 0 Net assets 544,355 644,331 A The accompanying notes form part of these financial statements. • • STATEMENT OF CASH FLOWS Note 2014 2013 NZ$ NZ$ Cash flows from operating activities Cash was provided from Grants from Aotearoa Foundation 1,000,000 500,000 Grants from Air New Zealand 200,000 200,000 Other grants and donations 10,814 200 Interest received 23,036 8,208 40 Total receipts 1,233,850 708,408 2 N Cash was applied to Payments to grant recipients (499,699) D Payments to suppliers (135,758) (142,040) z z Payments to employees (165,000) (86,250) C Goods and services tax (net) (2,885) (5.168) r M 0 Total payments (803,342) (233,458) 0 Net cash from operating activities 6 430,508 474,950 0 A Net increase in cash and cash equivalents 430,508 474,950 Cash and cash equivalents at the beginning of the year 657,378 182,428 Cash and cash equivalents at the end of the year 3 1,087, 886 657,378 The accompanying notes form part of these financial statements • • NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Oi< .; _ ?-IIODF,:^CEl,^G4r 1. Donated goods and services Donated services totalling $167,933 (2013 - $67,102) have been provided by Antarctica New Zealand 2. Operating expenses Note 2014 2013 NZ$ NZ$ Remuneration of auditor (audit fees) 3,380 3,255 Trustees' remuneration 9 36,000 36,000 Research grants 1,001,188 - Science development functions 47,715 63,896 41 Director's travel 64,505 31,100 z Trustees' travel 14,863 23,812 N Other operating expenses 49,598 42,452 D 1,217,249 200,515 z Total operating expenses z C D 3. Cash and cash equivalents r 2014 2013 m v NZ$ NZ$ 0 Cash at bank 587,886 7,378 500,000 650,000 Cash equivalents - term deposits 0 A Total cash and cash equivalents 1,087,886 657,378 4. Debtors and other receivables 2014 2013 NZ$ NZ$ Debtors and other receivables 21,030 11,315 Term deposit interest 4,623 6,383 Total debtors and other receivables 25,653 17,698 5. Creditors and other payables 2014 2013 NZ$ NZ$ Creditors 67,195 27,490 Accrued research grants 501,989 - Accrued expenses - 3,255 Total creditors and other payables 569,184 30,745 0 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS I :- P,= \AOr) F(.uFD JLji•F 2(/ i 6. Reconciliation of net surplus to net cash from operating activities 2014 2013 NZ$ NZ$ Net operating surplus/(deficit) (99,976) 476,072 Add/(less) non-cash items Donated goods and services - received (167,933) (67,102) Donated goods and services - expended 167,933 67,102 Total non-cash items - - 42 Add/(less) movements in working capital z N Debtors and other receivables (7,955) (17,667) Creditors and other payables 538,439 16,545 Net movements in working capital 530,484 (1,122) Z Z C Net cash from operating activities 430,508 474,950 r M 0 7. Post balance date events 0 No post balance date events have come to the attention of NZARI that are of a material nature as to require adjustment of the amounts contained in the financial statements or separate note disclosure. 0 A 8. Related party transactions and key management personnel There were no related party transactions between NZARI and its Trustees or any other party. Key management personnel compensation 2014 2013 NZ$ NZ$ Trustees' fees 36,000 36,000 Director's salary 175,000 105,417 Total key management personnel compensation 211,000 141,417 Key management personnel are the Members of the Board of Trustees and the Director 9. Trustees ' remuneration Members of the Board of Trustees earned the following fees during the year 2014 2013 NZ$ NZ$ Mr Rob Fenwick (Chair) 12,000 12,000 Mr Craig Heatley 6,000 6,000 Professor Mahlon Kennicutt II 6,000 6,000 Professor Mary O'Kane 6,000 6,000 Sir David Skegg 6,000 6,000 Total Trustees' remuneration 36,000 36,000 No Trustees received compensation or other benefits in relation to cessation (2013 - nil). 0 0 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS -0, f. :i- l:CJ ' D-D.i1 1. 10. Contingent assets and liabilities and commitments NZARI entered into a signed agreement with Aotearoa Foundation on 7 October 2011 in which the Foundation agreed to grant a total of $5,180,000 to NZARI over five years to support NZARI's establishment and operation. The grant is subject to the achievement of agreed milestones and receipt of six-monthly reports At 30 June 2014, $3,500,000 (2013 - $4,500,000) is yet to be received subject to achievement of these milestones There are no contingent liabilities, nor are there any commitments as at 30 June 2014 (2013 - nil) 43 z N D z z C r m a 0 0 4 • r] AUDIT N EW ZEALAND Mana Arotake Aoteaioa Independent Auditor' s Report To the readers of the New Zealand Antarctic Research Institute's financial statements for the year ended 30 June 2014 The Auditor-General has agreed to be the auditor of the New Zealand Antarctic Research Institute (the Trust) pursuant to section 19 of the Public Audit Act 2001. The Auditor-General has appointed me, 44 Ian Lothian, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements of the Trust on her behalf. z N > We have audited the financial statements of the Trust on pages 35 to 43, that comprise the statement D of financial position as at 30 June 2014, the statement of comprehensive income, statement of changes z in equity and statement of cash flows for the year ended on that date and the notes to the financial z statements that include accounting policies and other explanatory information. M Opinion v X) In our opinion, the financial statements of the Trust on pages 35 to 43: • comply with generally accepted accounting practice in New Zealand; and • fairly reflect the Trust's: o financial position as at 30 June 2014; and o financial performance and cash flows for the year ended on that date. Our audit was completed on 10 September 2014. This is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the Trustees and our responsibilities, and we explain our independence. Basis of opinion We carried out our audit in accordance with the Auditor-General's Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers' overall understanding of the financial statements. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the preparation of the Trust's financial statements that fairly reflect the matters to which they relate. We consider internal control 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 Trust's internal control. 0 0 An audit also involves evaluating: • the appropriateness of accounting policies used and whether they have been consistently applied; • the reasonableness of the significant accounting estimates and judgements made by the Trustees; • the adequacy of all disclosures in the financial statements; and • the overall presentation of the financial statements. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements. Also we did not evaluate the security and controls over the electronic publication of the financial statements. 45 We have obtained all the information and explanations we have required and we believe we have z obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion. N Responsibilities of the Trustees D z The Trustees are responsible for preparing financial statements that: z C D • comply with generally accepted accounting practice in New Zealand; and X m • fairly reflect the Trust's financial position, financial performance and cash flows. U 0 The Trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or 0 error. The Trustees are also responsible for the publication of the financial statements, whether in printed A or electronic form. The Trustees' responsibilities arise from clause 22 of the second schedule of the Trust Deed. Responsibilities of the Auditor The Auditor-General has agreed to be the auditor of the Trust pursuant to section 19 of the Public Audit Act 2001 and accordingly, under section 15 of that Act and clause 23 of the second schedule of the Trust Deed we are responsible for expressing an independent opinion on the financial statements and reporting that opinion to you based on our audit. Independence When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board. Other than the audit, we have no relationship with or interests in the Trust. J^,_ foh4,c^l Ian Lothian Audit New Zealand On behalf of the Auditor-General Christchurch, New Zealand ! ! 46 Z DIRECTORY Trustees DN Mr Rob Fenwick CNZM (Chair) D Mr Craig Heatley CNZM z Professor Mahlon C Kennicutt II C r Professor Mary O'Kane m Sir David Skegg KNZM , OBE, FRSNZ 0 Director Professor Gary Wilson Research Advisor Dr Nicole Stahlmann Corporate office International Antarctic Centre 38 Orchard Road Private Bag 4745 Christchurch New Zealand Phone +64 3 358 1280 Fax +64 3 358 0211 New Zealand Charities Commission registration number CC47860 Auditors Audit New Zealand Solicitors Chapman Tripp Bankers Westpac Banking Corporation Website www.nzari aq All images ©Antarctica New Zealand Pictorial Collection and respective photographers Cover and text printed on Rockstock , a tree free mineral paper board manufactured from milled quarry waste using no water and minimal energy non -toxic and low GHG emissions. 0 9 Empire penguins visit polar tents at Cape Evans © Ed Butler • • 2el . Antarctic Research Institute www.nzari.aq i E • THE AOTEAROA FOUNDATION 20-1464742 FEDERAL FOOTNOTES STATEMENT A PART VII-B, QUESTION 5(A)(4) STATUS OF GRANTEE THE AOTEAROA FOUNDATION MADE GRANTS DURING THE FISCAL YEAR ENDING DECEMBER 31, 2013 TO TEACH FIRST NEW ZEALAND TRUST. BASED ON THE FOREIGN PUBLIC CHARITY EQUIVALENCE AFFIDAVIT (SEE ATTACHED), THE AOTEAROA FOUNDATION HAS MADE A GOOD FAITH DETERMINATION THAT TEACH FIRST NEW ZEALAND TRUST IS THE EQUIVALENT OF A PUBLIC CHARITY DESCRIBED IN SECTION 501(C)(3) AND 509(A) OF THE CODE. 1762CE 3846 A56703 0 0 TEACH FIRST NEW ZEALAND TRUST Al e 2V i i Jun V The undersigned, in order to assist grant-making organizations in the United States in determining whether Teach First New Zealand Trust (the "Grantee") is the equivalent of an exempt organization within the meaning of Section 501(c)(3) of the United States Internal Revenue Code (the "Code") and the equivalent of a public charity described in Section 509(a)(l), (2) or (3) of the Code makes the following statement: I am the Chief Executive Officer of the Grantee. 2. The Grantee was created by deed dated 5 January 2011, is operated exclusively for charitable/educational, purposes under the laws of New Zealand. 3. The activities of the Grantee have included developing a plan to reduce education disparities and will include working to reduce educational disparities by recruiting top university graduates to become teachers in disadvantaged schools. 4. Copies of the charter, bylaws and other documents pursuant to which the Grantee is governed are attached hereto. 5. The laws and customs applicable to the Grantee do not permit any of its income or assets to be distributed to, or applied for the benefit of, a private person or non-charitable organization other than pursuant to the conduct of the Grantee's charitable activities, or as payment of reasonable compensation for services rendered or as payment representing the fair market value of property which it has purchased. 6. The Grantee has no shareholders or members who have a proprietary interest in the income or assets of the Grantee. 7. In the event that the Grantee were to be liquidated or dissolved, under the laws and customs applicable, or under the governing instruments, all of its assets would be distributed to another not-for-profit organization for charitable, religious, scientific, literary or educational purposes or to a government instrumentality. A copy of the relevant statutory law or provisions in the governing instruments controlling the distribution of the Grantee's assets on liquidation is attached. 8. The laws and customs applicable to the Grantee do not permit the Grantee, other than as an insubstantial part of its activities, i. to engage in activities that are not for religious, charitable, scientific, literary or educational purposes, or ii. to attempt to influence legislation, by propaganda or otherwise. 0 0 9. The laws and customs applicable to the Grantee. do not permit the Grantee dileLtiy or indireLiiv to participate Of nitervei-ie III an poiiiicai campaign 0a1 behalf of. or in opposition to. any candidate for public office 10 The Grantee is not controlled by or operated in connection with any organization other than as follows The Grantee has a progiam related relationship with '1 lie University of Auckland, which is working together \,^ith the Grantee to develop a teacher preparation program. 11. A schedule of support for the five most recently completed taxable years is attached. The undersigned affirms that the foregoing statements and any documents attached hereto are complete and accurate [Shaun Sutton , Chief Executive Officer] Sworn to before me this day of i,i ( _ . 2011_. Witness ! THE AOTEAROA FOUNDATION 20-1464742 FEDERAL FOOTNOTES STATEMENT A PART VII-B, QUESTION 5(A)(4) STATUS OF GRANTEE THE AOTEAROA FOUNDATION MADE GRANTS DURING THE FISCAL YEAR ENDING DECEMBER 31, 2013 TO MOTU ECONOMIC AND PUBLIC POLICY RESEARCH TRUST. BASED ON THE FOREIGN PUBLIC CHARITY EQUIVALENCE AFFIDAVIT (SEE ATTACHED), THE AOTEAROA FOUNDATION HAS MADE A GOOD FAITH DETERMINATION THAT MOTU ECONOMIC AND PUBLIC POLICY RESEARCH TRUST IS THE EQUIVALENT OF A PUBLIC CHARITY DESCRIBED IN SECTION 501(C) (3) AND 509(A) OF THE CODE. 1762CE 3846 A56703 FOREIGN PUBLIC CHARITY EQUIVALENCE e a V1T OF OFFICER. The undersigned, to assist grantmaking foundations in the United States of America determine whether Motu Economic and Public Policy Research Trust (the "Grantee") is the equivalent of a public charity described in section 509(a) (1), (2) or (3) of the United States Internal Revenue Code or a private operating foundation described in section 4942(j) (3) of the Code, makes the following statement: 1. Office. I am the Director of the Grantee. 2. Formation and purposes. The Grantee was created by Trust Deed in 2000, and is operated exclusively for the following purpose or purposes- X charitable (public policy research) q religious q scientific q literary X educational (economic research) q fostering national or international amateur sports competition q prevention of cruelty to children or animals 3. Programs and activities . The activities of the Grantee have included and will include: Motu is a small, independent research institute that produces world-class applied economic research.' It has been a charity since 2000. It is a unique organization within New Zealand that bridges the academic and public policy worlds. We believe that for New Zealand to succeed economically and socially, it needs 1 As an indication, from July 2012 to March 2013 we have produced 34 reports, including 16 in refereed journals, and given over 50 presentations to diverse audiences. 0 high-quality public policy. Such policy needs to be informed by world-class independent research, well- reasoned debate and good evaluation. Motu's senior researchers have all worked in the public sector and all are internationally recognized for their research. 4. Governing documents . Copies of the charter, bylaws, and other documents pursuant to which the Grantee is governed are attached. 5. No improper private benefits. The laws and customs applicable to the Grantee do not permit any of its income or assets to be distributed to, or applied for the benefit of, a private person or non-charitable organization other than: (a) pursuant to the conduct of the Grantee's charitable activities; (b) as payment of reasonable compensation for services rendered; or (c) as payment representing the fair market value of property which the Grantee has purchased. 6. No proprietary interest in Grantee. The Grantee has no shareholders or members who have a proprietary interest in its income or assets. 7. Distribution of assets on dissolution. In the event that the Grantee were to be liquidated or dissolved, under the laws and customs applicable, or under the governing instruments, all its assets would be distributed to another not-for-profit organization for charitable, religious, scientific, literary, or educational purposes, or to a government instrumentality for a public purpose. A copy of the relevant statutory law or provisions in the governing instruments controlling the distribution of the organization's assets on liquidation is attached. 8. Limits on activities . The laws and customs applicable to the Grantee do not permit the organization, other than as an insubstantial part of its activities, to (a) engage in activities that are not for religious, charitable, scientific, literary, or educational purposes; or (b) attempt to influence legislation, by propaganda or otherwise. 9. No candidate campaign activity. The laws and customs applicable to the Grantee do not permit the organization directly or indirectly to participate or intervene in any political campaign on behalf of, or in opposition to, any candidate for public office. -2- 0 0 10. Control by other organizations . The Grantee is [choose one]: X not controlled by or operated in connection with any, other organs q controlled by or operated in connection with another organization or organizations as follows: 11. Qualification as publicly supported organization. The Grantee is: q a school (that is, an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on and that has adopted and operates pursuant to a racially nondiscriminatory policy as to students, and has completed IRS Form 5578). q a hospital (that is, an organization whose principal purpose or function is the providing of medical or hospital care). q a church (that is, a church, synagogue, or mosque). X none of the above, but it satisfies a public support test as demonstrated by the attached Schedule of Financial Support for the five most recently completed taxable years. 12. Authorization. The Board of Trustees of the Grantee has authorized me to make this Declaration and affirms its contents. 13. Binding representations. The representations made in this Declaration are binding on the Grantee. -3- 0 • I declare that the foregoing is true and correct of my own knowledge. G/ "6 411t- - [signature of declarant] DATE: Z O% Attachments: • Governing documents • Relevant statutory law or governing document provisions relating to dissolution • Form 5578 (if organization is a school) • Schedule of Financial Support -4- • 0 Schedule of Financial Support New Zealand Dollars Year Year Year Year Year Total for 2008 2009 2010 2011 2012 five ears (A) Gifts, grants, and contributions received: 1,922,719 2,000,062 2,075,897 2,485,895 2,145,743 10,630,316 (B) Membership fees received: (C) Gross receipts from admissions, merchandise sold or services performed, or furnishing of facilities in any activity that is not a business unrelated to the organization's exem p t purposes: 22,230 9,140 9,524 8,811 7,009 56,714 (D) Gross income from interest, dividends, rents and royalties: 60,395 60,230 51,816 82,774 93,405 348,620 (E) Net income from business activities that are unrelated to the organization's exempt purposes: (F) The value of services or facilities furnished by a governmental unit without charge: (G) The total of lines (A) through F : 2,005,344 2,069,432 2,137,237 2,577,480 2,246,157 11,035,650 (H) Line (G) minus line C : 1,983,114 2,060,292 2,127,713 2,568,669 2,239,148 10,978,936 (I) Two percent of line (H): 219,579 (J) Please attach a schedule of contributions for each donor whose support for the five-year period was greater than the amount on line (I) (a major donor), and showing the amount by which each major donor's total contributions exceeded the amount on line I (excess contributions). (K) The sum of all major donors' excess contributions is: 5,635,725 (L) The five-year total for line (H), minus the five-year totals of lines (D), (E), and (K) (the amount of public su pport) 4,994,591 (M) Line (L) divided by the five-year total for line (H) (the percentage of the organization's support that is public su pport) 45% -5- Schedule of Major Contributions New Zealand Dollars Name Amount in Excess I of Line I NZ Foundation for Research , Science and Technology 4,817,921 NZ De partment of Labour 309,546 Royal Society of NZ Marsden Fund 440,421 NZ Department of Agriculture and Fisheries 61,671 Auckland Policy Office 6,165 TOTAL 5,635,725 -6- THE AOTEAROA FOUNDATION 20-1464742 FEDERAL FOOTNOTES STATEMENT A PART VII-B, QUESTION 5(A)(4) STATUS OF GRANTEE THE AOTEAROA FOUNDATION MADE GRANTS DURING THE FISCAL YEAR ENDING DECEMBER 31, 2013 TO THE DEPARTMENT OF CONSERVATION. THE AOTEAROA FOUNDATION TREATS THE DEPARTMENT OF CONSERVATION AS NOT BEING DESCRIBED IN SECTION 501(C)(3)OF THE CODE AND EXERCISES EXPENDITURE RESPONSIBILITY WITH RESPECT TO THE GRANT. AS OF THE TIME OF FILING THIS RETURN, THIS GRANTEE HAS FAILED TO PROVIDE THE REQUIRED REPORTS PER THE AGREEMENT. HOWEVER, IN ACCORDANCE WITH REGULATIONS SECTION 53.4945-5(E) (2), THE AOTEAROA FOUNDATION HAS MADE THE GRANT IN ACCORDANCE WITH PARAGRAPH B OF THIS REGULATON, HAS COMPLIED WITH THE REPORTING REQUIREMENTS TO THE IRS CONTAINED IN PARAGRAPH D OF THIS REGULATION, HAS MADE REASONABLE EFFORTS TO OBTAIN THE REQUIRED REPORTS, AND HAS WITHHELD ALL FUTURE PAYMENTS ON THIS AND ANY OTHER GRANT TO THE GRANTEE UNTIL THE REPORT IS PROVIDED. 1762CE 3846 A56703 • Poutiri Embracing Summary report December 2013 Prepared by Hawke's Bay District Office Department of Conservation Executive Summary The purpose of this report is to provide a summary of responses following The Aotearoa Foundation's emailed questions, based on the submitted Poutiri Ao o Tine, Embracing Restoration, Progress Report Period: December 2012 - October 2013. The Department of Conservation (DOC) Hawke's Bay Office has collated these responses following discussions with key personnel and project stakeholders. Background In December 2010, Aotearoa Foundation awarded DOC a grant of $ 930,000 NZD to be used between December 2010 and December 2013. The purpose of the grant was to support the DOC' s ecological restoration work in Hawke's Bay. The Poutin Ao o Tine project was established as a vehicle to administer the grant and to achieve the outcomes Aotearoa Foundation aimed to support. These were ' Habitat Restoration ' Species re-introductions > Landscape scale animal pest control > Research Education Communication Stakeholder engagement Poutiri Ao o Tine is a unique collaborative ecological and social restoration project located at the Maungaharuru-Tutira catchment, 60km north of Napier. DOC's Inland Island, Boundary Stream, is at its heart but, importantly, the project also encompasses an additional (8000ha) of farmland. Its objective is to bring native flora and fauna back into the lives of the local people through collaboration between like-minded partners across the six workstreams; habitat restoration, pest control, species relocation, research, education and community engagement. The project plans to see the return of native species to the area, not only in the habitats we expect them such as native bush, but also within the agriculture and forestry landscape The project has achieved many of its objectives with new project goals developing throughout the last three years. The Aotearoa Foundation has been critical to the success of the Poutiri Ao o Tine project and the community recognises the Foundation's significant contribution and commitment to ecological restoration in the Hawke's Bay region. Following the redesign and refocusing of the national DOC structure over the last two months, the former Hawke's Bay Area Manager, Chris Lister has passed the project to the new Napier Community Partnerships Manager, Joyce-Anne Raihania who is accountable to the new Lower North 2 0 0- Island Director, Reg Kemper, who is also the national office Project Sponsor. The Poutiri Ao o lane project is currently managed locally by Ken Hunt. DOC maintains its commitment to the many staff and volunteers who have notably also contributed to the acnievements of the project to date. (List stakeholders) Not only has Poutin Ao 6 Tine achieved the objectives set down within the project, but Aotearoa Foundation's support has been a catalyst for a broader re-think on how biodiversity objectives can be achieved across a number of projects throughout the region This has prompted the development of the Hawke's Bay Biodiversity Strategy and the establishment of a working group to drive the project. This strategy will guide a united approach to advancing biodiversity in Hawke's Bay. Financial Accountability Funds granted by Aotearoa Foundation have been used efficiently and prudently to advance projects within the seven workstreams Across the project, Aotearoa Foundation funds have been used to leverage thousands of hours of volunteer time and existing DOC resources - multiplying the positive outcomes that could have been achieved had the Department worked in isolation many times over. Aotearoa Foundation Query: "We are curious about the expected expenses - if more money is required why did we extend the grant timeline? We thought the reason was that you needed more time to spend down the money but that does not seem to be the case any longer? What was the reason for the over-spend?" Clarification is required on the use of the term 'shortfall' in the December 2012 - October 2013 Progress Report budget line (page 6). This results from misunderstanding of the non-cost funding transfer to the 2014 calendar year In reviewing the table, and in discussions with key personnel, that table was been inaccurately inserted. 3 0 0 The correct figures are outlined in the table below Budget for June 2013 to January 2014 Workstream Aotearoa Foundation. DOC Other Habitat protection 35000 Pest control 20000 50000 1 Species reintroduction 113000 Research 20000 1 Education Comms and stakeholders 2000 Manager salary 60000 230000 0 700001 Aotearoa Foundation Query: Can we please get an update on the education program? All three of DOCs Environmental Education Programmes (Marine, Freshwater and Bush) were modified to be included within the Poutin Ao o Tine project. A key partner for the project was the Environment, Conservation and Outdoor Education Trust (ECOED) ECOED is a charitable trust officially formed in 2002. Its mission statement is, "To integrate outdoor education, environmental education and kiwi conservation in Hawke's Bay by working collaboratively with key community stakeholders and schools through leadership and advocacy, supported by sustainable funding." Recognising the educational opportunities and synergies, the Poutin Ao o Tine project commenced its partnership with ECOED in late 2012. Two key projects were established and whilst these are still in early development, the initiatives have been operating successfully. These are the: 4 0 0 Kiwi health checks programme Teacher education packages The opportunity for Hawke's Bay school The concept for these packages was-developed students to 'touch, feel and see' our national late last year to provide a robust education con the kiwi, understand why it is one of New framework that assists teachers to develop, Zealand's most endangered native species and deliver and evaluate their lesson plans against realise the role that they may play in protecting the principles of the EOTC curriculum strand, the kiwi. including aspects and theories of environmental Other programmes are also offered under these sustainability. visits which include, investigations about pest Meetings with teachers in mid-2013 eradication, traditional uses of native plants, demonstrated the value of the_packages and understanding biodiversity in the leaf litter and they are currently being implemented across ten the ecosystem. schools. When the packages are refined in 2014 Follow up visits provide the opportunity to they will be placed on both the Poutin Ao 6 Tane demonstrate the monitoring and pest control and ECOED website, for regional, national and methodologies within their school setting e.g. international educational use. trapping and tracking. Feedback from both teachers and students has been very positive, especially as these programmes align directly to the NZ curriculum strand. Education Outside the Classroom (EOTC). Evaluations are conducted, support letters forwarded and affirmative comments forwarded ( see Appendix A) The following table illustrates the number of engagements across the Hawke's Bay educational region during the 12 month period. Number of Schools Number of Teachers Number of Students 10 schools 40 Teachers 460 students Over the last year, teachers and students have benefited through their respective professional and personal experiences, development of knowledge and capability and the enjoyment of our natural environment The benefits to conservation have been through the additional volunteer work undertaken, increased public understanding of the environment and support through active advocacy for conservation. Aotearoa Foundation Query: Can we please get an update on the governance and leadership and staffing of the project? The original governance agreement was for DOC to govern and manage the project until it was ready for an independent governance body to be established. This process is now in place ready for establishment. 0 A steering group of key stakeholders were formed to oversee the project rather than members of governance structure. These included representatives from: > DOC Hawke's Bay Hawke's Bay Regional Council > Maungaharuru-Tangitu Inc Ngati Hineuru > Ngati Pahauwera â Hastings District Council (HDC) â Landcare Research â ECOED â Tutira Community > Landcorp Farming Ltd ' Pan Pac Forestry During the last 12 months the Steering Group has met three times to discuss key topics, including: Reviewing the project objectives against the key milestones > Media and promotional strategies to raise community profile > Reviewing the education stream and partnership with ECOED Community engagement opportunities â Project alignment to the Biodiversity Hawke's Bay strategy > Engagement feedback with landowners Y Translocation planning and reporting > Outcome of meetings with Iwi regarding translocations, education and observance of Maori protocol Review of pest control methodologies â Research opportunities The Wellington-Hawke's Bay Conservancy of the DOC has provided sound foundations and structure during the life of the project that have proven instrumental in advancing key relationships within the Hawke's Bay region. Staffing Ken Hunt is currently managing the project holding the responsibility for it's implementation and coordination of the Poutiri Ao 6 lane project. Other staff involved in the project include: DOC Hawke's Bay Hawke' s Bay Regional Council (HBRC) ECOED DOC staff have contributed in excess of 7500 hours to the project and the Department has also added value through contributing resources such as vehicles and other infrastructure. 6 0 -0 Aotearoa Foundation Query:_How is everything going in terms of community engagement? What sort of numbers of people engaged? Fundraising? A significant amount of work has gone into preparing community engagement and community fundraising campaigns that will both raise awareness across the region and leverage corporate and philanthropic sponsor benefits. Stakeholders have been engaged in the preparation of these campaigns, resources identified and supporting material developed, ready for implementation. Community Fundraising campaigns include HabitArt Hands for Habitat ' Plant Our Habitat > Protect our Habitat > Birds in our Backyard A range of community engagement campaigns have also been developed by the Giblin Group in 2012, that will enable the community to participate in the Hawke's Bay environment, such as an ambassadors programme, Park Rangers and the Poutiri Supporters Club. These require further development for implementation once the infrastructure to support them is in place. Sponsorship packages outlining sponsor benefits, naming rights and investment have also been designed to attract fundraising. A range of marketing material such as a DVD and Sponsorship Book has also been developed to support this process. This suite of Community Engagement and Sponsorship campaigns has been on hold since June, pending the internal redesign of DOC and the establishment of a charitable governance entity to allow sponsors to engage with the project. Other funding initiatives include- Mahia Peninsula's Whangawehi Catchment Group is a strong community-led catchment management group which began work four years ago. Its leadership comes principally from two marae located on the Peninsula and its area of work covers 25% of Mahia. The group has gone from strength-to-strength in the last 18 months with the assistance of seed-funding from the Aotearoa Foundation (through the Poutin Ao o Tane project), Hawke's Bay Regional Council, DOC and Wairoa District Council. Some selected links are below. The group is on the path to achieving identified community outcomes by attracting sustainable funding. Recently it received approval from the Lottery Grants Board for $180,000 for restoration related work and has received the TrustPower supreme regional award. It is an excellent example of what can be achieved through seed-funding from the Aotearoa Foundation, along with other partners, to help a community-led project flourish. The project is currently promoted through a range of media, including the Poutiri Ao o Tane website, Facebook, public presentations with interest groups and volunteer events. 7 Aotearoa Foundation Query: What are the concerns and 'step-backs' on the Hawke's Bay Habitat campaign? The Hawke's Bay Habitat campaign was developed to engage the community in restoration projects and, in turn, attract phiiantnropic and corporate partnerships This will generate sustainable long- term funding, providing financial security and independence for biodiversity projects in the region. These community engagement and sponsorship campaigns required the backing of a charitable trust, which required the establishment of a governance structure outside the Department. The implementation of these campaigns was put on hold until this and DOC's internal redesign were cemented. It was also imperative that there was buy-in from the various stakeholders in Hawke's Bay's biodiversity projects. Poutin Ao o Tane has strengthened relationships between those stakeholders and enabled discussion around the best way to achieve common goals in the region. As a consequence the Biodiversity Hawke's Bay concept, regional biodiversity governance and a regional biodiversity Strategy have been established. These will align the various biodiversity projects to support each other. This structure will also allow the Hawke's Bay Habitats campaigns, developed for Poutin Ao 6 Tane, to be tailored to raise awareness of Hawke's Bay's biodiversity and raise funds for the various projects under the new regional biodiversity brand. Aotearoa Foundation Query: Can we please discuss landowner engagement? It is mentioned in the report, but we would like to better understand if the landowners contribute any money or resources and how the whole project works. The original landowners were, and still are, very supportive of the project, particularly the pest control workstream . They have allowed access across their land and in some cases modified their farming operation while traps and monitoring equipment were set up. Many continue to show their support to the pest control contractor through allowing access across seasonal farming operations, checking the traps and informing the contractor on relevant issues. This part of the project also forms part of the ongoing research. Discussions are continuing with other landowners who are keen to be involved, including around the role of the HBRC supplying traps or these becoming available after the trap review analysis is complete. The trap review analysis looks to determine the effectiveness of the present trap layout and identify traps that can be repositioned or redeployed to a wider area. Research on the predator control component of this project to date suggests that the low-cost large- scale predator control techniques trailed within Poutiri Ao o lane can potentially be successfully applied elsewhere within the Hawke's Bay region. Landowners will be encouraged to undertake servicing of the traps with the training and support of the project team. 8 -0 -0- Aotearoa Foundation Query: Can you provide further details on how you track the results of the breeding/translocation program over the longer term? Petrels : With the two petrel species the first gauge of success is the number of chicks translocated that successfuiiy fiedge. in the case of last season's Cooks Petrel, 48 of the 50 fledged and that has to be considered a success. Ultimately, it will be number birds returning to bred at the site that determines the success. The juveniles do not return for 4 to 6 years after fledging and in the natural situation only 10% to 15% (species vary) return. A similar return rate will constitute a success. The programme is to carry out translocations for a 5 year timeframe, by which time the original fledging should be returning A successful translocation programme for seabirds is considered to be when 50 pairs are breeding at the site, which will continue to be monitored by DOC. Kaka and Kakariki : Similarly, the number of birds successfully released (either by hard or soft release) is the first measure. In our situation all 29 kakanki and 6 kaka that were translocated were released. The second measure is the number of birds that remain in the locality. It is notoriously difficult to determine exactly how many kakariki are present, as they are comparatively secretive and difficult to count Birds are continuing to be seen and heard within Boundary Stream Five of the six kaka are still present in the reserve. We suspect the missing bird may have a failed transmitter but may still be present in the wider district. The ultimate success is developing a breeding population however, male kaka usually don't breed until two years old. Translocation of species has been successful to date with early indications of populations establishing themselves at the release sites. Conclusion The wide-scale predator control component of this project has been very successful. It has delivered an implementation pathway for low-cost large-scale predator control in a New Zealand farmland context, which will allow larger scale projects to be attempted. Community engagement is a component of this project and learnings taken from the last three years have created a framework that will support campaigns going forward. The Poutin website has created the opportunity for a large number of hits indicating popular community interest in viewing. This in turn will be a catalyst to attracting sustainable sponsorship and partnership funding. The species translocations are on target and it is expected that over time viable populations will be established at the release location sites. The Aotearoa Foundation grant has clearly enabled DOC to take its ecological restoration work in Hawke's Bay to a new level. In implementing the Poutin Ao o Tane project the Hawke's Bay stakeholders are committed to replicating ther learnings throughout the wider Hawke's Bay in conjunction partners, HBRC and ECOED. Thank you again for your support in advancing biodiversity in Hawke's Bay and we look forward to discussing this project further. 9 M a C.13 L e .F C1 1+i L111llYn C 1. Vl \,1.J11JCl v CLLIUil ANNUAL REPORT For the year ended 3o June 2014 . . C13 Department of Conservation Te Papa Atawhai Annual Report For the year ended 30 June 2014 Presented to the House of Representatives pursuant to section 44 of the Public Finance Act 1989 • • © Crown copyright, September 2014 ISSN 1176-7324 (punt) ISSN 1177-990X (online) This document can be found online at wwwdoc govtnz/annual-report-2o14 CC P I This work is licensed under the Creative Commons Attribution 3 o New Zealand licence In essence, you are free to copy, distribute and adapt the work, as long as you attribute the work to the Department of Conservation and abide by the other licence terms To view a copy of this licence, visit http //creativecommons org/ltcenses/by/3 o/nz/ Please note that no departmental or governmental emblem, logo or Coat of Arms may be used in any way that infringes any provision of the Flags, Emblems, and Names Protection Act 1881 Attribution to the Crown should be in written form and not by reproduction of any such emblem, logo or Coat of Arms Use the wording Department of Conservation' in your attribution, not the Department of Conservation logo This publication is printed on paper pulp sourced from sustamably grown and managed forests, using Elemental Chlorine Free (EFC) bleaching, and printed with 100% vegetable-based inks • • Contents Director-General's overview 7 Introducing the Department of Conservation 8 The nature and scope of the Department of Conservation's functions 8 Department of Conservation outcomes 9 Outcome statement 9 Five intermediate outcomes 9 Delivering conservation outcomes for New Zealand 10 Opportunities and challenges in a changeable operating environment 10 Our response. Growing conservation in partnership and valuing natural capital 11 The year in focus 14 Performance summary 18 Department of Conservation national performance indicators 19 Outcome statement measuring progress 20 How we measured progress towards the outcome 20 Summary of output performance 23 Natural heritage 24 Growing capability in understanding marine biodiversity 26 Growing freshwater biodiversity monitoring 26 How are we doing? 27 Is plant diversity being sustained? 27 Are forests on Public Conservation land a sink or source for carbon? 28 Is the full range of ecosystems protected in New Zealand? 29 Statement of service performance 2013/14. Managing natural heritage 33 Statement of service performance 2013/14: Regional pest management strategies 39 Historic heritage 40 Benefits of protecting heritage and bringing history to life 42 Achievements in 2013/14 45 Outputs that contribute to this intermediate outcome 46 Statement of service performance 2013/14 Management of historic heritage 46 Recreation 48 Benefits of increasing people's enjoyment of the outdoors 50 How are we doing? 50 Achievements in 2013/14 55 Outputs that contribute to this intermediate outcome 55 Statement of service performance 2013/14 Recreation opportunities 56 Engagement 58 Benefits of more people engaging with conservation 60 Change in New Zealanders' understanding of important conservation issues 6o Change in the quality of DOC's engagement with key associates 61 Change in the satisfaction of tangata whenua with DOC's activities to help them maintain their cultural relationships with taonga 62 Achievements in 2013/14 63 Outputs that contribute to this intermediate outcome 63 Statement of service performance 2013/14. Engagement 65 0 0 Business partnerships 66 Increase in engagement of the commercial sector in conservation partnerships 68 Change in the level of investment from the commercial sector in conservation 69 Increasing the return to conservation from key DOC products and service 70 Organisational capability 72 Overall status Capability and workforce 73 Organisational change 73 Developing the capability of people across and outside DOC 74 Leadership development 75 Equal employment opportunities 76 Improving effectiveness of organisational systems 76 Safety and wellbeing 77 Outputs that contribute to this output class 78 Policy advice, ministerial services, management planning, servicing statutory and ministerial bodies 79 Policy advice 79 Ministerial services 79 Statutory and ministerially appointed bodies 79 Management planning 80 Statement of service performance 2013/14 Policy advice and services 81 Asset management and profile 82 Asset management capability 82 Land assets 82 Performance of physical assets 83 Asset profile 83 Financial statements 85 Statement of responsibility 85 Independent Auditor's Report 86 Departmental financial statements 89 Statement of accounting policies 97 Notes to the financial statements 103 Non-departmental financial schedules 118 Statement of accounting policies (non-departmental) 122 Notes to the schedules 124 Additional financial information 127 Appendices 129 Appendix 1• DOC's responsibilities 129 Appendix 2. Departmental outputs 130 Appendix 3. Conservation Services programme 132 Appendix 4. Performance of Reserve Boards as at 30 June 2013 133 Appendix 5 Search and Surveillance Act 2012, section 171 134 Bibliography 135 0 0 Director-General's overview The Department of Conservation (DOC) was local iwi/hapu/whanau to improve the health of dune restructured in 2013 to grow conservation by working in lakes in the Far North, and with iwi/hapu/whanau in the partnership with others We are now implementing the Bay of Plenty in the management of the Tarawera Trail. new structure and strategy, focusing on where we can We look forward to continuing work with Ngai Tahoe make the most conservation gains. in Te Urewera to ensure the best outcomes for existing biodiversity and visitor projects. New Zealand has some of the best natural and cultural features and ecosystems found anywhere in the world. The opening of Stage 1 of the Tarawera Trail in However, much of New Zealand's biodiversity is at risk December 2013 was a significant moment for local iwi from introduced pests, weeds, biosecunty incursions and and DOC It facilitated the long-held desire of local iwi potential impacts from climate change and hapu to return to their tribal lands and the birthplace of tourism in New Zealand, vacated as a result of the 1886 Restoring natural ecosystems and species takes time but eruption of Mount Tarawera. we are starting to see results in the Catlins, for example, the threatened yellowhead/mohua population is now More than 600 community groups are involved in increasing after DOC's work with TBfree New Zealand conservation with around 14,000 volunteers contributing on a pest control programme to treat 47,000 hectares of their time Non-governmental organisations such Forest forest with aerial 1080 to control possums, rats and stoats. and Bird, Federated Mountain Clubs of New Zealand, The relocation of 11 Coromandel brown kiwi to predator- World Wildlife Fund, New Zealand Deerstalkers' free Motutapu Island in the Hauraki Gulf Marine Park Association and the Environmental Defence Society is also contributing towards the establishment of a continue to maintain an active interest in conservation in genetically robust, self-sustaining population of kiwi. New Zealand. The New Zealand Conservation Authority and conservation boards, Heritage New Zealand, Fish In response to a national beech mast event, the Battle and Game New Zealand, and the newly created Game for Our Birds is a cross-agency campaign to save birds Animal Council all have statutory interests in our work. and preserve ecosystems on a major landscape scale, and involves aerial 1080 pest control over 700,000 DOC actively manages 660 key sites that reflect many hectares. We also have major challenges in conservation themes of New Zealand history and 20 Historic Icon of our marine environments, and the establishment of sites continue to be developed as part of the Icon visitor the three subantarctic islands marine reserves and the destinations offering quality experiences for visitors And Akaroa Marine Reserve are positive steps in meeting this last year we were delighted to help celebrate the 125th challenge. anniversary of the Milford Track. DOC's commercial partnerships with businesses such As well as these achievements, we have been working as Fonterra, New Zealand Aluminium Smelters, Air hard during the past year to implement the new New Zealand, Genesis Energy and Dulux New Zealand structure, and ensure our strategy reflects the new are contributing to conservation. We are working with direction. Such a major change is complex and will take Fonterra over the next 10 years on community projects time and effort to implement fully. A significant focus valued at 20 million dollars to improve water quality has been placed on improving workplace safety through and enhance biodiversity. This shows a long-term all the change management processes commitment of New Zealand's largest industries by one Further details of our progress over the past year are to protecting waterways and ensuring dairying works outlined in this report. alongside natural habitats and healthy ecosystems. Philanthropic interest from the NEXT, Morgan, Tindall i j f and Aotearoa Foundations also plays a key role in achieving New Zealand's conservation vision. vl r We have been working closely with iwi as our primary Lou Sanson partner through the principles of kaitiakrtanga and Director-General matauranga Maon with respect to their interests in 30 June 2014 conservation. For example, we are working alongside Department of Conservation Annual Report for the year ended 30 June 2014 0 0 Introducing the Department of Conservation The nature and scope of the resources, provides conservation information, and promotes the economic, environmental and social of Conservation's Department benefits of conservation. DOC is the lead advisor functions on New Zealand biodiversity matters for the Convention on Biological Diversity. The Department of Conservation (DOC) is the central government organisation charged with promoting Treaty of Waitangi settlement negotiations are a conservation of the natural and historic heritage of focus for the Government and DOC plays a key role New Zealand on behalf of, and for the benefit of, present in negotiations through developing 'cultural redress'. and future New Zealanders. This redress covers a spectr un, from formalising the This means DOC has a range of responsibilities ongoing relationship between the claimant group and DOC and the Minister of Conservation (for example • In coordination with others, maintaining as much as through a protocol) to the transfer of significant areas is possible, the integrity of New Zealand's indigenous of land with the claimant group fully responsible for ecosystems managing conservation values into the future • Acting as guardian to some of New Zealand's cultural DOC works with central government agencies primarily, and historic heritage but not exclusively, through the Natural Resources Sector • Contributing to the recreation opportunities of all (NRS). In other forums, it works with tangata whenua, New Zealanders landowners, regional and local government, businesses, science providers, recreation, outdoor and conservation • Supporting tourism, one of the country's largest earners organisations, and community groups of foreign exchange For the 2013/2014 year, the Minister of Conservation • Giving effect to the principles of the Treaty of reconfirmed the Department's focus on the Better Public Waitangi in accordance with section 4 of the Services Programme* by focusing on finding new and Conservation Act 1987. different ways of working that deliver greater value and (See Appendix 1 for a description of DOC responsibilities, better results for New Zealanders and the'Organisational capability' section for the DOC The Department's strategy is to build on the increasing operating structure) public interest in conservation and willingness of many Some of DOC's functional responsibilities go beyond to be actively involved. Underlying all of DOC's work is the boundaries of public conservation lands and waters. the understanding that conservation is not done by the These include the protection of marine mammals, Department alone. Many threatened species occur on preservation of native freshwater fisheries and protecting private land, and local landowners are often best placed recreational freshwater fisheries and freshwater fish to take appropriate action to ensure their survival. habitats. DOC is responsible for conserving protected Whether on or off public conservation lands and waters, native wildlife wherever it occurs. It advocates DOC must become more focused on working with others generally for the conservation of natural and historic in flexible and innovative ways. See the State Services Commission website www ssc govt nz/bps-background-material 8 Department of Conservation Annual Report for the year ended 30 June 2014 Department of Conservation outcomes The Department's outcomes model links the Five intermediate outcomes intermediate outcomes and the outcome statement DOC works towards the outcome statement through to its vision. The outcomes model shows the strategic five intermediate outcomes that express the results approaches and drivers that underpin DOC's work, as set it is seeking to achieve through its interventions over out in figure i. (DOC's outputs are listed in Appendix 2) the medium term The intermediate outcomes are Outcome statement i. The diversity of our natural heritage is maintained and restored The long-term outcome the Department contributes and brought to life to on behalf of the Government is- 2. Our history is protected 3. More people participate in recreation Zealanders gain environmental, New y. More people engage with conservation and value social and economic benefits from healthy its benefits functioning ecosystems, from recreation 5 Conservation gains from more business partnerships. opportunities and from living our history. A living Treaty partnership based on shared values for the benefit of Aotearoa New Zealand ^tlM• nF'^-e Outcome Our history is protected and brought to life statement MI New Zealanders gain environmental, More people participate in recreation social and economic benefits from healthy functioning ecosystems, More people engage with conservation from recreation and value its benefits opportunities, and from living our history Well-served Government and citizens Capable Department of Conservation Figure 1: DOC's outcomes model. Department of Conservation Annual Report for the year ended 30 June 2014 9 0 0 Delivering conservation outcomes for New Zealand Opportunities and challenges in a clunate regulation, and influences on nutrient cycles As well as having responsibility for protecting natural changeable operating environment resources, DOC's functions in managing historic heritage and recreation opportunities strengthen New Zealand's Challenges cultural identity, enrich people's leisure time, encourage Building awareness within the community healthy lifestyles and increase awareness of and support and its leaders for conservation. Businesses directly benefit where they The task of delivering conservation gains to ensure are involved in contributing to conservation delivery, native and ecosystems is bigger the security of species for example, through revenue derived from providing than DOC can achieve alone Ecosystems and the services to visitors and the brand association with New species within them have no regard for boundaries Zealand's image of abundant natural wonders and a cared between public and privately owned environments for environment. Conservation thinking, therefore, must be integrated into all activities that affect, or support, healthy Many New Zealanders think that conservation is at the ecosystems, be that central and local government heart of what it means to be a New Zealander (Nielsen policies, business resource use, waste disposal and 2014) * This means DOC can work with communities, supply chains, and individuals' own actions iwi, whanau, hapu, businesses and individuals to harness their efforts to achieve conservation gains A prosperous Managing threats to biodiversity business sector is a component of a prosperous society New Zealand is now experiencing a'mast year, when The aim is to ensure that natural capital' is a positive and certain forest trees (notably beech species) seed growing component of the economy. prolifically The flow-on effect of this is mouse and rat population explosions in the spring due to the bountiful Being more effective predator numbers to food source. This in turn, causes The Department has a new structure that is designed increase rapidly, which puts huge pressure on many to be more effective in engaging others in conservation of our native birds, bats and insects, threatening local and focusing delivery staff on clear conservation tasks. extinction for species such as the yellowhead/mohua. DOC's Growth Framework sets the Department's DOC needs to be able to periodically mobilise to direction from which to drive high-value conservation undertake rat and stoat control on a much more extensive return. As well as seeking to maximise conservation scale than during the years in between. This means growth from its existing work and partnerships (the main adjusting priorities and undertaking rapid operational focus of its effort), DOC is also taking a developmental planning including engaging with communities over planning this pest control, which involves large-scale focus to conservation. This involves improving poison operations An agile workforce and flexible approaches to planning and delivering conservation, planning systems are essential for DOC to be able increasing engagement and removing barriers to others' to respond to changing threats and pressures. involvement in conservation. Some initiatives will involve deliberately pursuing transformational change Opportunities that may result in large-scale return for conservation Understanding the benefits ofconservation Building the capability of DOC managers and staff Society benefits from successfully delivered conservation. will help them to work within this context and to take Ecosystem services provided by natural environments opportunities to improve how conservation is delivered include water capture and purification, flood control, and how much is achieved across New Zealand. References can be found in the bibliography at the end of this report t Ecosystems, biodiversity and natural resources - these underpin economies, societies and individual wellbeing In addition to traditional natural resources such as timber, water, and energy and mineral reserves, it also includes biodrversity, endangered species and the ecosystems that perform ecological services 10 Department of Conservation Annual Report for the year ended 30 June 2014 • 0- Our response: Growing conservation in The natural and historic heritage resources managed by the Department make a considerable contribution partnership and valuing natural capital to the prosperity and wellbeing of New Zealanders (see figure 2). In addition, the quality and extent of Growing conservation in partnership ecosystems, and their resilience to stressors such as Although New Zealanders can be proud of many climate change, disease and land use change, are critical conservation achievements, as a country we still face to the country's ability to prosper and underpin our big environmental challenges. wellbeing and standard of living. While a general decline in the status of many species and ecosystems is still occurring, where DOC and The Department is working to increase its understanding others are working, great results are being achieved of the services and benefits provided by the natural for conservation A lot more work needs to be done and historic heritage assets it administers so it can across all of New Zealand to halt the decline of the clearly articulate what the New Zealand public receives natural environment. from this investment in conservation management This will help policy and decision makers to increase It has become apparent that no one organisation, their understanding and take into account the impact including DOC, can tackle these challenges on its own. of potential resource-use decisions on ecosystem To have a significant impact on conservation, and to functioning, social-ecological resilience and the ongoing deliver increased benefits to New Zealanders, work provisioning of services. to protect indigenous species and ecosystems must continue nationwide and on a much broader scale, Demonstrating that everyone has an interest in the wherever they occur throughout New Zealand This conservation, management and use of natural resources means engaging many more people in conservation will support the Department's goal of increasing and enabling others to play their part engagement with partners, business and the New Over the past year, DOC has made organisational Zealand public in conservation. changes that will enable an increase in conservation Over the next year, the Department will continue to working more effectively with others We are efforts by integrate the natural capital concept within its core work working with businesses, communities, iwi, whanau, and programme through. hapu, to take conservation beyond DOC's traditional boundaries and into communities and people's back • Initiating planning to integrate status and gardens and onto farms trend reporting on ecosystem functioning, resilience and wellbeing within its monitoring We'are also working with NRS colleagues and local and reporting framework authorities to ensure a coordinated governmental approach to how we measure, monitor and manage • Contributing to the Natural Capital Assessment (NCA) New Zealand's natural assets. process, as a member of the NRS Valuing natural capital • Including ecosystem services within the 2000 refresh process The Department of Conservation is charged with Biodiversity Strategy managing New Zealand's natural and historic resources • Researching the environmental limits it is necessary to protect their intrinsic values, safeguard them for to work within to maintain the ongoing existence and future generations and provide for their recreational functioning of ecosystems, including the provision of use and enjoyment by the public. Managing the state of ecosystem services. native species and the health of New Zealand's public conservation lands and waters is core work for the Department This work is increasingly seen within the country's broader economic, environmental, social and cultural contexts. Department of Conservation Annual Report for the year ended 30 June 2014 11 • • Delwennc conservation outcomes for New Zealand n n - Natural resources Histono resources DOC Intermediate Outcomes Figure 2: The relationship of DOC outcomes, ecosystem services and wellbeing. 12 Department of Conservation Annual Report for the year ended 3o June 2014 • • Delivering conservattor outcomes for New Zealand New Zealand Natural Capital The NCA will include an assessment of the direct Assessment and indirect benefits that ecosystems provide to New Zealanders in terms of relative value. It will DOC co-sponsored the Valuing Nature conference focus on the links between ecosystems, the services in Wellington in July 2013, along with the NRS they provide and their contribution to economic agencies, Victoria University of Wellington and the prosperity and human wellbeing These ecosystem Sustainable Business Council. This conference was services include provisioning services such as food, attended by around 400 people from the business fibre and energy; regulating services such as the sector, local and central government, academia and regulation of floods, the climate, and water quality; community organisations Building on the momentum supporting services such as nutrient cycling and soil generated by the conference, DOC worked with NRS formation; and cultural services such as recreational agencies and others to prepare a business case for opportunities, inspiration and aesthetic existence* the development of a New Zealand natural capital and bequest' values assessment (NCA) The NCA will contribute towards a comprehensive In February 2014, NRS chief executives agreed in assessment of the true wealth of New Zealand, how principle to support the development of an NCA for it is changing and future prospects This will enable New Zealand as an NRS collaborative initiative The better decision making, more certain investment, proposed NCA is an ambitious multi-disciplinary new avenues to wealth creation and lobs, increased collaboration to assess the state, trend and value human wellbeing and a more sustainable future of ecosystem services that are derived from New Zealand's natural capital ' Existence values are the values that people place on something simply because it exists even if they never experience it directly t Bequest values are the values that people place on the knowledge that something will be passed on for future generations Department of Conservation Annual Report for the year ended 3o June 2014 13 0 0 The year in focus This section summarises DOC's main achievements for the year, including through partnerships with others. This year we DOC, in collaboration with others, is undertaking work sUppoced that began more than 4 decades ago under the Wildlife Service to bring species back from the brink of extinction.* We are increasing our understanding of the health of New Zealand's indigenous ecosystems across the 6 country, which is providing a valuable baseline for reporting the difference made in pest and weed control °J and species management activity This baseline is systematic and nationwide, measuring multiple community biodiversity indicators. It allows specialists to look at partnerships relationships between components of biodiversity and to evaluate status and trends in biodiversity alongside our previous understanding based on anecdotal evidence, case studies or individual studies Following the modifications of more than 200 years of introduced animal browsing, New Zealand's native and more than forests now appear to be relatively resilient to further change, albeit supported by widespread animal control operations However, some ecosystem types have been severely reduced in scale and condition, and many ooo threatened species require specific protection to reduce the risk of local, and possibly total, extinction. Our knowledge base about freshwater and marine ecosystems L way establish robust is limited. Planning is under to volunteer days. information sets to inform decisions for conservation of these environments. Work continues on the establishment of more systematic approaches to improving ecosystem health at priority places and increasing the populations of threatened species The biodiversity status and trend monitoring programme is also revealing the value of forests as carbon sinks. All the signs suggest that the country will soon be experiencing a predator plague brought on by high seed fall in beech forests, putting populations of native birds, lizards and invertebrates at even more risk. ' Conservation efforts so far have saved the kakapo, takahe, black robin. Chatham Island taiko, petrel and oystercatcher, parea, Forbe's parakeet. rows, New Zealand fairy tern, orange-fronted parakeet, North island kokako, and brown teal/pateke 14 Department of Conservation Annual Report for the year ended 3o June 2014 We manage hectares on behalf of 4.5 million New Zealanders and year ;;' e treated 1 , 2 . nn ^^^ hectares for Th!s year ov,000 454,000 I p ossums... million hectares for hectares for goats... weeds. lpf f. r"__ -1 We also manage just under 1 .11 square kilometres of marine protected areas. . 30 - , In response, the Department has initiated the Battle Visits to DOC-managed land continue at a positive for Our Birds predator control programme level and we have learnt more about the reasons that individuals either increased or decreased their level of The richness of New Zealand's history is appreciated participation recently Visitor satisfaction appears to as people continue to visit the Historic Icon sites DOC remain high. Planning for visitor facility provision draws manages, which profile early industries and events that on our understanding of visitor preferences and includes shaped and defined the character of New Zealand today. taking a measured approach to ensuring visitor safety. We are tracking the condition of these historic sites Following recent volcanic activity on Mount Tonganro, and managing those that are more significant or at risk a new eruption detection system has been installed We have halted a decline in the overall condition of the This includes lighted signs at either end of the Tonganro actively conserved places and now need to build on this Alpine Crossing and in the middle section, to warn success. One highlight during the year was the 125th walkers of possible risk DOC has been promoting the anniversary celebration of the opening of the Milford Great Walks in partnership with Air New Zealand, and Track, an icon of the Great Walk opportunities now visitor numbers continue to grow. Road access at Aoraki/ available Also, the restoration of the Manganuku Bridge Mount Cook National Park has been improved in a joint in eastern Bay of Plenty has begun. This is one of only two project with the New Zealand Transport Agency exceptional wooden highway bridges left in the country Department of Conservation Annual Report for the year ended 30 June 2014 15 0 0 The ;:ear in focus New Zealanders continue to rate conservation as to engage in conservation. DOC is exploring visitor important This achievement is supported by activities opportunities that offer commercial operators new such as the use of social media (for example, the experiences around which to build their businesses (such Facebook page for Sirocco New Zealand's official as Manaaki Trails and Coastal Gems) `spokesbird' for conservation), and engaging the public DOC, in coming out of significant organisational change, in the development of conservation management is focusing on the capability development needed to strategies. The challenge is to shift more people from ensure staff have the right skills and behaviours to grow just acknowledging the importance of conservation to conservation using the operating model that engages actively taking part in it, which will ultimately increase others in conservation. DOC has strengthened its Kahui the benefits everyone gains from conservation. Kaupapa Atawhai team to increase overall capability in DOC's new Community Conservation Partnerships managing relationships with iwi partners and obligations Fund (CCPF) has increased the funding available to coming from Treaty of Waitangi settlements. There community groups to help them engage in practical is a deliberate focus on supporting strong leadership conservation work Plus, important conservation projects across the organisation and within the wider NRS. The are being supported through the efforts of others, and shared service model is now being thoroughly road- philanthropists and thought leaders are fronting the tested. For example, the Services Planning Team is challenge of ridding New Zealand of its pests and weeds, helping enhance business planning by implementing and protecting important ecosystems. a 'prescriptions' approach (whole of life planning for ecosystems and species). Information technology is DOC, by engaging with others and focusing on providing applications to help field staff capture needed mutual benefits, has formed important partnerships data, improve data management and share information with business in New Zealand This is enabling more more widely. significant conservation to be delivered, and businesses to reach out to their customers in new ways An'injury free and safe home every day' vision is being promoted, and greater focus put on reducing risk in high- In 1987, when DOC was formed, it had less than 200 hazard work areas These threads draw together to enable concessionaires, now it has over 4000, with adventure DOC to undertake its work efficiently, effectively and tourism the big growth area This growth is both good safely and to be able to engage with others to tackle the for local economies and enables many more visitors conservation challenges ahead. 16 Department of Conservation Annual Report for the year ended 30 June 2014 • 0 We have 0 Great Walks An agreement yr th our national air inne now orcmotes the Great Walks on the word stage Ea rn year we welcome more than .. to CLIr rl. 57 visitors visitor centres 14,000 976 1,950 making us one of the biggest tourism operators 0 in New Zealand! 9 • ___ Performance summary The Department measures progress towards long-term The table below shows the Department's performance goals in five core business streams and seven categories this year of capability. Key Natural heritage Performance improving The diversity ofour natural heritage is Performance maintained maintained and restored. 0 Performance declining Historic heritage Performance maintained, but limited dataset Our history is protected and brought to life. .'i Performance data being collected or between surveys Recreation Performance measures yet to be developed More people participate in recreation. One or more of the conditions listed may apply. These results are for some outcomes, notably natural heritage, Engagement reflecting a composite of indicators and measures that More people engage with conservation and value may individually be improving or declining, therefore, its benefits. the performance rating is a generalisation Definitions Business partnerships Improving - Progress towards the outcome described is Conservation gains from more business positive, overall conditions are unproving; numbers are partnerships. increasing, targets are being met or exceeded. Capability Maintained - The state of the outcome described is stable, overall conditions are neither improving nor Our business is supported by a capable workforce declining, numbers are stable; if targets are being met, and sound systems. then the outcome is being achieved. Declining - Progress towards the outcome described is negative, overall conditions are degrading, numbers are decreasing; targets are not being met. 18 Department of Conservation Annual Report for the year ended 30 June 2014 Department of Conservation national performance indicators Natural heritage Overall Status Indigenous dominance-ecological processes are natural Species occupancy-the species present are the ones you would expect naturally Ecosystem representation-the full range of ecosystems is protected somewhere 0 Historic heritage Overall Status Increase in the number of key historic sites where heritage assessment reports have been completed Increase in visitor numbers at Historic Icon sites Increase in the percentage of key historic sites categorised as stable and not deter-orating Recreation Overall Status Increase in New Zealaiders' awareness of DOC as a recreation provider Increase in participation in recreation on public conservation lands and waters Increase in visitor sat sfachon with the quality of the experience a-id opport.n Ves provided Engagement Overall Status Cnange,n the importance of conservation to Zealanders Change in the quality of DOC's engagement with key assoc,ates Change in the satisfaction of tangata whenua with DOC's ac:;vi;ies to help them maintain their cultural relationships with taonoa Business partnerships Overall Status Increase in engagement of the commercial sector in conservation partnerships Change in the level of investment from the commercial sector in conservation Improvement in level of return on investment for key DOC products and services Capability Overall Status Leadership DOC has the leaders it needs to perform well now and in the future Relationships- DOC identifies, builds and manages relationships critical to achieving results Culture. DOC has the type of culture it needs to achieve results now and in the future People DOC has the skills and competencies to achieve its results in collaboration with others Information and communications technology (ICT). DOC has the ICT it needs to achieve results and contribute to others Asset management. DOC's asset-related decisions support current and future service delivery Structure- DOC's structure is linked to its future business needs Department of Conservation Annual Report for the year ended 30 June 2014 19 • • Outcome statement: measuring progress As previously discussed, the outcome that DOC that will contribute to DOC's understanding about the is working towards is benefits people receive from conservation: • Health and wellbeing benefits ofconservation in New New Zealanders gain environmental, Zealand (Blaschke 2013) social and economic benefits from healthy • Ecosystem goods and services in marine protected functioning ecosystems, from recreation areas (van den Belt & Cole 2013) opportunities and from living our history. DOC is continuing a quantitative survey which provides a measure of the benefits people believe they are gaining People having respectful attitudes towards the from conservation This survey was first reported in environment and being supportive of conservation the year ended 30 June 2006,' was reported again in is an important foundation for achieving this outcome. 2007/08 and has been reported each year since 2010/11. We believe this will result from people having a wider A new survey methodology was tested last year, asking understanding of how conservation makes a difference the same questions but using postal responses and the to their wellbeing. mtemet instead of a telephone survey (Nielsen 2014). Results were similar between the two survey techniques How we measured progress towards Table 1 shows the most common responses given in the outcome 2013/2014 when asked about the main benefits of conservation personally compared to the previous 3 DOC monitors two indicators to show its progress years Almost all respondents (97 percent) mentioned at in achieving this. least one personal benefit. Tracking trends in the benefits New Tracking the relative value ofconservation Zealanders seek and receive from the as an indicator for conservation. natural, historic and cultural heritage managed by DOC. The 2013/14 survey found that 8o percent of the 4363 respondents felt that conservation was important to them This indicator provides a measure of New Zealanders' (see table 2). views of the benefits received from natural, historic and cultural heritage Work is currently underway within Also of note are the findings of New Zealand General (Statistics NZ 2013), which showed that 85 DOC and externally (nationally and internationally)* Social Survey or satisfied which will help to increase understanding and enable percent of respondents were very satisfied native bush New Zealand. In addition, these benefits to be demonstrated. with the state of in the 2013 Lincoln triennial national survey on public The following reports have been completed in the perceptions of New Zealand's environment (Hughey et 2013/14 financial year and are part of a body of work al 2013) had similar findings For example, The Economics of Ecosystems and Biodiversity (TEEB) at www teebweb org (accessed 21 July 2014): Millennium Ecosystem Assessment (MEA) at www maweb org (accessed 4 August 2014), United Kingdom National Ecosystem Assessment (UK NEA) at http //uknea unep-wcmc org/ (accessed 4 August 2014), Common International Classification of Ecosystem Services (CICES) at http //cices eu/ (accessed 4 August 2014) t At that time, DOC had two high -level outcomes Protection and Appreciation . The 2006 indicator repon was for the Appreciation outcome 20 Department of Conservation Annual Report for the year ended 30 June 2014 Table I• The main benefits of conservation to you personally. Percentage of respondents 2010/ 11 2011 / 12 2012/13 2013/14 (n=3614) (n=3885) (n=4829) (n=4363) Main benefits of conservation (personal) (%) (%) (%) (%) Protecting plants and animas 20 20 21 35 Protecting the natural environment for my children 19 22 17 31 Preserving protect,ng and looking after the natural env ronrnent and 7 20 13 '8 g'een space Ab l ty to access and enjoy a healthy. safe and natural environment 17 9 14 1.6 Green spaces to go to (access to experiences and enjoyment of 12 15 22 15 natural habitat) To have a clean healthy and safe environment 3 2 '3 11 Protect our native species i 02 5 11 Healthy forests 7 7 5 10 (Responses receiving 10 percent or more in the 2013/14 survey are included here All topics with 10 percent or more in previous years are listed. Multiple responses were accepted, so all results total to more than loo percent) Table 2: Percentage of New Zealanders who consider conservation is important or very important to them personally. Thinking about conservation overall, 2010/11 2011 /12 2012/131 2013/14 how important is conservation to you personally ? (%) (%) (%) (%) Rated 4 or 5 out of 5, with 5 being 'very important' 86 83 81 80 Despite this, in DOC's 2013/14 quantitative survey if they were more aware of its current condition, (Nielsen 2014) only y, percent of New Zealanders particularly as the economy is dependent on healthy indicated that they had undertaken at least one action native functioning ecosystems. in the last 12 months specifically relating to a New There is a growing interest in describing and quantifying Zealand conservation issue, such as donating money to (where possible) the benefits New Zealanders receive a conservation cause (23 percent) or seeking information from nature (referred to as ecosystem services). New about an issue (19 percent) Zealand is one of several nations taking steps to reveal It is unlikely that most people have a clear understanding these benefits and factor them into capital accounting of the ecological health of New Zealand's natural models.' Examples of ecosystem services provided to heritage, and their satisfaction levels might change New Zealanders by natural ecosystems are provided next t New survey methodology commences § See Government Economics Network Living Standards Hub www gen.org.nz/tiki- index phpPpage =LS•1 •Sustainability- for•the•Future (accessed 21 July 2014) Department of Conservation Annual Report for the year ended 30 June 2014 21 • is Outcome statement measuring progress Examples of ecosystem services derived & Lamed 2013) also indicate that intact ecosystems from functioning ecosystems generally provide water of higher quality than modified landscapes • New Zealand's primary industries (including • Indigenous forests in many of New Zealand hill agriculture, horticulture, viticulture, apiculture, forestry country areas reduce mass-movement erosion and fisheries) make a significant contribution to the and sedimentation of waterways when compared economy These industries depend on many services with other land uses such as pastoral grazing In a provided by native (indigenous) species and intact recent study by Dymond et al (2010) of the Motueka natural ecosystems, including regulating water quality Catchment, an erosion model was used to predict and quantity For example, tall tussock grasslands alternative management scenarios and associated play a role in maximising the supply of freshwater sediment discharge Three scenarios were explored compared with other land-cover types (Ingraham (1) where the whole catchment was still under & Mark 2000, Mark & Dickinson 2008) Butcher indigenous forest, (2) where it was under current Partners Limited (2006) estimated that water from land use that includes a mix of production forestry, Te Papanui Conservation Park, which is dominated indigenous forest and pastoral grazing, and (3) by these grasslands, was worth 5136 million in total where all production forestry in the present land use net present value (applying a 7 5 percent discount was converted to pastoral grazing Under scenario rate) for Dunedin City drinking water, hydro-electricity 1 (indigenous forest cover), the modelled mean generation and irrigation Many New Zealand studies sediment discharge was less than half that under (for example, Galbraith & Burns 2007, Quinn et al scenario 2 (present land use) and five times less than 1997, Quinn & Stroud 2002, Ballantine & Davies- that under scenario 3 (production forestry converted Colley 2014; Unwin et al. 2010, Unwin to pastoral grazing) 22 Department of Conservation Annual Report for the year ended 30 June 2014 Outcome statement measuring progress Summary of output performance Performance trend by financial year Actual Actual Actual Actual Actual Target Significant output measures 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Possums - hectares sustained 1,023,846 1 080.120 1,024,448 1,010 770 939,395 1,044 800 Possums - hectares treated 285 338 223,523 234 636 184,179 180 069 213.129 Goats - hectares sustained 2,184.817 2,221,403 2.357 373 2,310,738 2,156,704 2,221,394 Goats - hectares `reared 1,468,262 1 313.036 1,410,088 1,353 319 222,053 1,438 732 Dee' - hectares sustained 720.495 732,203 732 203 549,638 540 756 541,000 Deer -'ectares treated 360,120 375 724 367,376 376 010 372,458 374 000 Weeds ecosystem - hectares sus'ained 1 653,010 1,748,522 1 806 266 1.752,995 1 851 778 1.366.965 'eeds ecosystem - `recta es treated 504,013 4 75,439 475 568 492,263 454 074 544 901 Threatened spec es - improved security 241 242 238 212 196 192 Threatened spec-es - - - 42 111 104 159 managed for pers'stence Ecosystems - - - - 151 185 289 managed for ecological integrity Beech mast response ------613.000 hectares under restoration H,stonc assets - remedial work to standard 33 26 29 27 17 21 Historic assets- 849 944 1,169 962 984 1,110 maintenance work to standard Recreation assets - huts to standard (%) 86 83 87 87 70 90 Recreation assets - tracks to standard (%) 55 58 61 58 47 45 Recreation assets - 95 94 95 93 92 95 structures to standard (°o) Engagement - volunteer workday equivalents 30,007 32.507 31,806 35,135 35 ,149 34 000 Engagement - partnerships 133 508 548 595 605 713 Department of Conservation Annual Report for the year ended 30 June 2014 23 Nature hernotage cz' o ^c^ '111 U o j , ' o oo .~C o "o c L -^`- t k ^lSUI l4 °1^ °L ;'r }^ _ - -, , f Cpl O n v - C" 1 o '1 ^ i, ;!^ ^(: r. J ^^^ ^`-_ oc (' N,•f2^V) ^ J• r f' r ` ^ ^.J _^ V v ,v •, ^^ ee^^-- ^ {'\,^ C^ n ,^, ^'^ ^:i I) it ^.-•=-` -_ _ - ^ ilC`f,^^1 r^_^n ^- L` ^, ^^^ °, ` ltI ] 1yt7u' o ^^ °l ^,^ ^^ L r,J'^'r ^ r^?L' QL)S C v ^o c_ l .^ _ , of - 1=1^^ 1, -^-=_-^`°-`+`!^ _ f t', '';i ^ Cl - ,'l ^ ^_^.. (^ '^ .^1 _J ^ti . 5 ^ ^ _ ^ • --^ 1 ^ n ?^ p1 U ^ „e ^ r^ C i-..=^jr^' r r^ r ^ I y mow, -' ti 'Sy-°^y t-^- f- ^.-a'ie'r ^ •+ r 4 ' -$"^;C-•^ ^ ^ . .. -• a . ^ rrr'I ( .75^`. it r t ( e ` ' (` ^'^ ^ ^^^r ,-'^ tl^ ! I ' ^ fi Ir jl ^ ^• ^1A9 'zS°1^ ^ ms`s. l o ni ^. 1• i 'a 17 t ur 8^,u - c^ 0 ,^ A -A L :-- Forest road trough beech trees, BuRer Photo Rob Swsted / wwwnaturespic corn 24 Department of Conservation Annual Report for the year ended 30 June 2014 A T+ r i ' 4't^ - IJ Ilk ti t r ^. i f^ • ^ f lor { V I Ilk 4AW to, J '^ • ' J Overall status Indigenous dominance-ecological processes are natural Q Species occupancy-the species present are the ones you would expect naturally Q "t ': ' Ecosystem representation-the full range of ecosystems is protected somewhere Natural .r eritage The New Zealand Biodiversity Strategy 2000 was created Findings from the monitoring programme are in the context of declining biodiversity in New Zealand summansed below Full details can be found in and around the world generally While this unfortunate the companion reference reports published by the state of decline is generally accepted as occurring, and Department of Conservation (2ol4a) and Bellingham we often know why it is occurring the status and trend of et aL (2014). New Zealand's natural biodiversity is not well understood. This limits the confidence we can have in the choice Growing capability in understanding of management actions to take to halt and reverse this decline. The review of the New Zealand Biodiversity marine biodiversity Strategy completed in 2005 (Green & Clarkson 2005) The Department of Conservation's Marine Ecosystems supports DOC's development of inventory and Team has been developing a new monitoring and monitoring tools (as part of the Natural Heritage reporting framework for marine reserves, based on Management System, NHMS) to underpin an outcomes- the concept of `ecological integrity' Progressive based management approach. implementation of this initiative will complement that DOC is developing a three-tiered monitoring approach occurring for terrestrial and freshwater ecosystems and to provide the evidence base it needs to determine will result in DOC being able to better monitor and whether the diversity of our natural heritage is being report on the effectiveness of its management on the maintained and restored It has been investing in ecological integrity of sites it manages in the marine selecting sites aimed at ensuring that a full range of environment This research and development work will New Zealand's ecosystems is conserved to a healthy build on the existing monitoring programmes in place functioning state. DOC has continued to maintain its in a number of New Zealand's marine reserves. long-term trend monitoring of threatened species and communities at a number of these sites. Growing freshwater This objective, national-scale monitoring across all biodiversity monitoring public conservation land, provides the context against which to determine whether trends in these managed This year further development of the national sites depart from what is happening across the rest of monitoring and reporting programme focused on the country, and therefore provides an evaluation of the freshwater ecosystems Data on water and soil chemistry, difference being made by DOC's management DOC, in hydrological change as well as native species is needed partnership with the Ministry for the Environment (MfE), to determine whether lake, wetland and river sites is in the third year of its national-scale monitoring of the managed by the Department are maintaining natural measurement of forests and shrublands (but draws on processes. Information on water chemistry will identify historical data where trends can be shown). MfE began an the risk of eutrophication (being high in nutrients) and assessment of the carbon stored in forests and shrublands monitoring of water levels and flows is needed to ensure nationally between 2002 and 2007, including on all the hydrological regime is appropriate (in other words, public conservation land. This was principally to meet that natural water flows are occumng). Degradation New Zealand's international reporting obligations under of natural processes is also observed through data on the United Nations Framework Convention on Climate the abundance and distribution of native species. Data Change DOC worked with MfE to measure the diversity presented in the DOC Biodiversity indicators-2014 of plant communities using the same measurement assessment (2ol a) highlights the potential for regional points. We can report change, that is, the maintenance of summaries of the status of freshwater ecosystems and diversity, following a remeasurement of the same points information on the status and trend of high priority sites between 2oog and 2013, and it provides an opportunity Progressive implementation of national monitoring to link these trends to other measures of biodiversity, such will enable DOC to report on the integrity of freshwater as bird communities that DOC has measured since 2012. ecosystems on public conservation lands. 26 Department of Conservation Annual Report for the year ended 30 June 2014 • 0 Indigenous forests on metric tonnes of carbon public conservation land store of which ... iJ iil uvc JICIIIJ is in dead wood (fallen logs and 13% 5% is in litter standing dead trees) 16% How are we doing? confined to native forests, these are not just canopy trees and understorey shrubs but also herbs, ferns, epiphytes In 2014, possums occupied 77 percent of indigenous and vines forest on public conservation land with a relative known abundance of 4.9 percent (Trap Catch Index) and Some of the native plant species in forests are preferred food source of introduced invasive wild deer and/or feral goats occupied 73 percent of to be the indigenous forest with a relative abundance of 41 mammals. As introduced herbivorous mammals such percent (Faecal Pellet Index) Forest locations with as deer, goats, and possums spread throughout the possum management had lower relative abundance main islands of New Zealand, mostly during the early than those not subject to control. Put simply, possums to mid-2oth century, there was often rapid growth in and introduced deer, goats and pigs are spread across their numbers and they depleted forest understoreys the the country, occurring in most native forests Sustained and canopies of the species that they prefer to eat, so control operations are reducing possum numbers. forests now bear that initial impact. At local scales, it's clear from fenced areas of forest Is plant diversity being sustained? compared with adjacent areas, that deer or goats can retard regeneration of some trees. Yet an objective Overview systematic assessment of New Zealand's forests since Today's forests bear the legacy ofpast high numbers 2002, including national parks, showed that there is very ofdeer and goats and these mammals feed selectively little, if any, evidence that populations of common tree on some native trees, shrubs and herbs. However, species are failing to regenerate, and there is little, if any, the plants these mammals prefer are regenerating change in the populations of these trees This includes widely in forests and have done so throughout the past species that commonly feature in the diet of these decade. Therefore the local-scale damage that these mammals, such as kamahi, mahoe, and broadleaf, so areas mammals have been shown to cause is the exception, of forest where mammals cause regeneration failure are not the norm. Non-native plants haveprogressively the exception, not the norm Populations of these trees invaded many native forests over the past decade. are being maintained throughout New Zealand, as are the widespread herbs and ferns-their presence has remained Maintenance and restoration of diversity is a key goal largely unchanged over the last decade for the Department Eighty-two percent of New Zealand's native vascular plants are endemic. Many of these are Department of Conservation Annual Report for the year ended 30 June 2014 27 I:atu:al r e=stage Invasion of forests by non-native plant species is widespread but at a low level (on average about 3 percent =c reests in ',Jew Zea ana's of plants at any given site nationally were non-native national parks store on average species) Sixty-eight percent of forest plots in each measurement period contained only native plant species Non-native herbs and grasses are the most frequent Fr"^ invaders, with non-native pines invading forests too, 1 although most pine invasions occur into shrublands and grasslands The extent of this for non-forested sites will be reported next year. In areas surveyed between more carbon per 'ec:a-e it live stems Than 2oog and 2013, either radiata pine or lodgepole pine or forests on the rein nder of Nev. Zea aria's public scnservaOo,n and Douglas fir had invaded one in 110 sites (o 9 percent of sites) There is a growing pool of non-native plant species that can invade forest understoreys and some of these will respond to disturbance to forest canopies such as the damage caused by Cyclone Ita in April this year, so the current low levels of invasion may not endure. Widespread surveillance is desirable to understand the dynamics of weed species. Are forests on Public Conservation land a sink or source for carbon? and storage of carbon Indigenous forests on public Overview conservation land store 1.3 billion metnc tonnes of carbon (based on systematic measurements between It is important to understand the extent to which 2009 and 2013), 65 percent of which is in live stems, 16 forests capture atmospheric C02, this being a main percent roots, 13 percent in dead wood (fallen logs and greenhouse gas affecting climate change. DOC is in standing dead trees), and percent in litter Forests in the steward ofthe great majority ofNew Zealand's 5 New Zealand's national parks store on average 17 percent natural forests. These store a large amount ofcarbon more carbon per hectare in live wood than forests on the in live and dead tree and plant stems (such as those remainder of New Zealand's public conservation land- that fall during storms). They have been an important an unexpected additional ecosystem service provided by sink for carbon over the past decade, offsetting New national parks. Zealand's emissions. They also have benefits for biodiversity. The more carbon that forests store, the The role of New Zealand's native forests in sequestering richer the native bird communities and the fewer non- carbon has been highlighted through the re-measurement native birds and non-native plant species occur in of permanently marked sites throughout New Zealand. them. It is important to understand whether the forests Between a first measurement in 2002-2007 and a second are carbon-neutral or a net carbon sink. Ifthe latter, in 2009-2013, there was a net increase in carbon stored of this can, in part, offset greenhouse gas emissions. 0 56 metric tonnes of carbon per hectare per year. About 70 percent of New Zealand's remaining This re-measurement programme also showed that the indigenous forests are on public conservation land. more carbon is stored at a point, the more the proportion They fulfil many key ecosystem services, including of native to non-native bird species increases, and the the provision of clean water, resources for pollinators, number of native birds increases with the amount 28 Department of Conservation Annual Report for the year ended 30 June 2014 • Natural he:itace of carbon stored. High carbon storage in live stems Percentage of each of Nev' Zealana's provides diverse habitat more foraging area for birds, biogeographic regions Thai a p'otected and roosting sites and feeding opportunities for some ',n,tr manna reserves birds (such as kaka) and also bats, as well as supporting highly diverse communities of fungi. Dead wood also contributes by providing nutrients to soils, supporting the agents of wood-decay such as fungi and invertebrates I& and is a key habitat for the regeneration of some trees it Three Kings Kermadec Islands. Islands 100% The re-measurement work also showed that non-native 0% a plant species are most frequent in forest stands that O.. support low amounts of carbon. In forest stands that store more than 300 tonnes of carbon per hectare there West Coast North Eastern <1 % are very few non-native plant species. North Island Is the full range of ecosystems East Coast South Cook 4P North Island protected in New Zealand? Strait < 1% 4& <1% Marine ecosystems West Coast South Island• North Cook Significant progress on implementing marine protection 0% ca 40 Strait <1% in New Zealand's waters was made in 2ol3/14. Four 40 new marine reserves (three around subantarctic islands ^ East Coast and one in Akaroa Harbour) were established, bringing South Island a Fiordland Chatham the total number of New Zealand marine reserves <1% <1% Islands to 38, with a total area of about 1.7 million hectares 4P 0% covering approximately 9.5 percent of New Zealand's Southern South 41111, Territonal Sea The three new marine reserves around Island <1% (C3 the subantarctic Antipodes Island, the Bounty Islands Snares Islands 0% 0 and Campbell Island/Motu Ihupuku were established Subantarctic through the passing of new legislation, the Subantarctic 0 Islands Islands Marine Reserves Act 204. Additionally, the 78% Kaikoura (Te Tai a Marokura) Marine Management 0 Bill was drafted and progressed in 2013/14 to provide for the protection and sustainable use of the Kaikoura marine environment, including the establishment of Hikurangi Marine Reserve Five new marine reserves were also approved in 2013/14 for the South Island's West Coast as a result of a collaborative stakeholder-based While substantial legal protection is now provided planning process. A new marine protected area planning through marine reserves in some marine biogeographic process for Otago was also announced and progressed regions, in particular the ecologically significant in 2013/14 Approximately 25 percent of the total marine Kermadec and subantarctic islands, habitats and reserve area implemented in New Zealand over the past ecosystems in some of New Zealand's 14 coastal 39 years was put in place or significantly progressed to marine biogeographic regions remain significantly near completion during 2013/14. underrepresented in marine protected areas (for further Department of Conservation Annual Report for the year ended 3o June 2014 29 Natural n entage freshwater ecosystems in protected areas administered by the Department ranges from 29 percent for rivers to Bog 60 percent for wetlands However, relative to their historic extent, only 6 percent of wetlands are in protected areas Gumland/ The marsh, fen and swamp wetland types have lower Pakihi levels of protection across New Zealand. Relative to the historic extent of wetlands, marsh and swamp wetland types have the lowest proportion in protected areas Fen (3 percent for each), and bogs the highest (2o percent) (see figure 3) Swamps, fens and marshes are a priority Swamp for protection in terms of wetland ecosystems. Naturally uncommon ecosystems Marsh Naturally uncommon ecosystems, such as shell barrier and shingle beaches, coastal turf and volcanic dunes, 20 40 60 80 100 frequently occur outside public conservation lands % of wetland type in protected area and waters They often exist because of a distinct set of environmental conditions, and are often associated with Relative to current extent -" Relative to historic extent rare and threatened endemic species. The 72 threatened ecosystems are progressively being mapped to help Figure 3: Percentage of different wetland types understand the remaining extent. Four of the 35 mapped in protected areas threatened ecosystems have less than 20 percent of their total area protected as public conservation land. Because of this they are a high priority for future protection details see DOC Btodtverstty indicators. 2014 assessment, efforts. For more information on these uncommon 2014a) The development of a longer-term strategy for ecosystems, go to www.landcareresearch.co nz/science/ addressing these gaps in marine protection through plants-animals-fungi/ecosystems/rare-ecosystems. collaborative planning processes remains a priority for Threatened species the Department of Conservation to progress in 2014/15. Information on New Zealand Threat Classification Estuaries System (NZTCS) status is gathered over a 3-year cycle There are almost 40o estuarine systems in New Zealand, The data-gathenng process for the 2012-14 cycle is close which include tidal rivers (such as Manawatu and to completion. Completed reports are available on the New River Estuaries), tidal lagoons (such as Ponnia DOC website www doe govt nz/pubhcations/sctence- Harbour), drowned valleys (such as Katpara Harbour), and-technical/products/senes/new-zealand-threat- coastal lakes (such as Lake Onoke) plus many smaller classification-senes A comprehensive update on this estuarine sites at river and stream mouths As part of its indicator will be included in the 2015 report. work in estuarine management and conservation, DOC The conservation status of New Zealand's freshwater is currently undertaking an assessment of estuarine fish and freshwater invertebrates was assessed. Of the protection. An update on this work will be included in 54 resident native fish, 74 percent are considered to be next year's report. Threatened or At Risk, compared with 65 percent in the 2009 list. Just over a quarter of the resident native fish Freshwater ecosystems (26 percent) have a higher threat classification in 2013 The land status of freshwater ecosystems has an impact than m 2009 on the protection options available. The percentage of 30 Department of Conservation Annual Report for the year ended 3o June 2014 Natu•al 'entace Also assessed were 644 freshwater invertebrate species Canterbury, all home to yellowhead/mohua (Nationally (across five Phyla, 28 Orders and 75 Families), with 25 Vulnerable), orange-fronted parakeet/kakankt karaka percent classified as either Threatened or At Risk This (Nationally Endangered), great spotted kiwi (Nationally is the most comprehensive assessment of freshwater Endangered) and kea (At Risk) Further north at locations invertebrate threat rankings to date. Many species listed in the Lewis-Maruia catchments, up to 13,000 seeds/ have small natural ranges restricted to specialist habitats, m2 have been recorded, home to these species and the so the loss and/or degradation of habitat is a significant vulnerable long-tailed bat threat to the persistence of these species. DOC will now Very high numbers of seeds have also been recorded identify where it should focus its protection efforts for at locations in the Catlins, Kahurangi and Mt Aspiring freshwater invertebrate conservation. areas, home to a variety of threatened species including snail species, blue duck/whio and Occurrence and intensity of mast flowering and Powelliphanta rock wren/tuke It is important to note that currently fruit production widespread forest bird species such as robins/toutouwai, Periodic, high seed production by a number of forest bellbirds/konmako, tui and kereru, along with native trees and tussocks has been shown to be an important lizards and insects, are also vulnerable to periodic driver of plant and animal population dynamics. irruptions of rodents and stoats Effective management Large infrequently occurring seed crops represent an during these irruptions is critical for the recovery and important resource for birds, insects and mammals. Seed long-term survival of a range of native species within production varies greatly both geographically and in the mainland native forests. timing of when this will occur among and within species that mast. In New Zealand, these high seed fall events Data from monitoring of beech seed fall and rodent result in a cascade of responses by both native birds and and stoat abundance is currently being used to plan for insects and introduced mammals Irruptions in mouse approximately '700,00o hectares of aerial 1o8o operations and rat numbers typically follow this event, which then in South Island beech forests - the Battle for Our Birds triggers the breeding of stoats, which in turn increases (Department of Conservation 2014b). The objective is the predation pressure on native fauna, such as the to ensure protection for native bird species during the yellowhead/mohua and kaka and long-tailed bats spring nesting season and provide opportunities for the ongoing maintenance and recovery of vulnerable Seed fall monitoring has confirmed widespread mast populations. The outcomes of these interventions will be seeding by the South Island beech forests this year monitored and reported on next year. Although seed collection and counting is still underway, 22 of the 42 monitoring locations have already produced Figure 4 below shows the beech seed fall rates where more than 2000 seeds/m2, the approximate tugger these have been measured as part of DOC's status and level for concern about rodent numbers and predator trend tier 1 monitoring programme. Other sites are also irruptions. For example, approximately 12,000 monitored using a different methodology in the lead-up seeds/m' have fallen at monitoring locations in to a beech mast event, once the event appears likely to the Poulter valley, and 8000 seeds/m2 have fallen occur This additional monitoring helps to fine-tune the in neighbouring Hawdon and Hunmut valleys of management response. Department of Conservation Annual Report for the year ended 30 June 2014 31 natural' eritace Beech seedfall to forest floor (pe- rr') =eh uar; - -,y 2014 O 0-2,000 O 2,001-4 000 0 4,001-13,000 Public Conservation Land ' ♦+. -f ^`^ _ rte ' , Figure 4: Beech seed fall rates at Tier 1 monitoring sties. 32 Department of Conservanon Annual Report for the year ended 30 June 2014 tutu-al ;entace Statement of service performance 2013/14: Managing natural heritage Performance measures and targets: 2013/14 National commentary` Fire control 8 conservanc,es will operate within a fire response and / 10 conservancies ope ated within a f,re response and,or action or action plan published n accordance with he Nationa' plan published in accordance with the National Departmental Departmental Fire Plan Fire Plan These plans now apply across the six new 17 September 20'3 the Deportment reorganised from Conservation Serrces regions nstead of the 1 conservancies 11 conservancies to 6 Ccnserva:-o. Se•vices reg-cis previously in dace Achieved 3 conseranc es w.ll operate within the °i^e Pan of a Rural Fire 3 conserva,icae operated w to n the F:re Plan of a Rural Fire District D strict These are Nelson Marlboro.ig•i Soutnla-id and the West Coast conse vancies These pla; is r row apply ac•oss the three South Isla d Co•tservat-on Ser,ices req,o,ts instead of the 11 conser\,ar,(,,-s p.,c.ioL s,y in pace Achieved Pest and weed control : Possums 206 015 nectares on ,and .,ill rece' e treatment this year for 80,069 hectare , of land rece ved treatment for posums rosy, inns Not achieved. Southern South Island reported pos'oonerrent of 8 500 hectares in order to incorporate treatment -nto the Battle for Our Birds beecn mast iesporse in 201 i 15 South-east South Island repront,sed possum resources to weed work affect.ng 1 562 hectares. Lower North Island and Central Norm Island regions also reported postponement of operations affecting 9 300 hectares as a result of weather events and deferment of related species work ikokako translocation) Northern North Island region reported Dos:poning 20,000 hectares as a result of cna,iges to the regional structure which occurred during the planning phase of field operations 1 042,536 hectares of land will be under sustained control for 939,395 hectares of land were under sustained control for possums possums Not achieved. There has been a small reduction in the area under sustained control due to some rationalising of the boundaries of treatment blocks following the change in the organisational structure, and aligning with ecosystem prescriptions DOC considers that performance has been achieved when the output is within a tolerance level acceptable for the nature of the operation. For field operations, this is generally within plus or minus to percent of the projected performance target For significant outputs however, as shown on the 'Summary of output performance' table, this tolerance is plus or minus 5 percent When outside these ranges, a variance comment is provided. Department of Conservation Annual Report for the year ended 30 June 2014 33 Natural :-eritage Performance measures and targets 2013/14 National commentary Pest and weed control: Possums 89 oossum operatic-is wid op undertaken and meet ther targets 51 possum control opera. ens have been undertaken with 46 for operational success (90 percent) meeting their targets for operational success Not achieved. The main variance in n,irrbers of operations is described above in the possum treatment measure Pest and weed control: Doer 378 314 Hectares o land wIl receive treatment for deer 372,458 hecta•es of land received t'ea`'nent for deer Achieved M6 288 nectare,, or land a-ll be under s.:staried co; ""oi for 540,756 hectares of la-,(j were under sustained con•rol for deer dem Achieved Pest and weed control: Goats 1 378,198 hectares of and will receive treatment for goals 1,222 053 hectares o' land rece"4ed treatment `o- goats Not achieved. North and Western South Island region reported that reenontising resources to undertase marine mamma, wo,k and p,g control at Farewell Spit affected 64,000 hectares Louver North Island region reported that the move from a s-ngle focus on goats to more integrated pest management at priority sites affected 54 000 hectares of goat control Northern North Island region reported that difficulty engaging contract hunters affected 24 000 hecta•es 2,283,451 hectares of and will be under sustained control for 2,156,704 hectares of land were under sustained control for goats goats Not achieved. The lower North Island control programme is being reviewed, taking into account priorities derived from ecosystem prescriptions Pest and weed control: Other terrestrial animal pests 48 pest control operations will be undertaken against other 49 pest control operations were undertaken against other terrestrial pests. terrestrial pests. 48 met the criteria for success set out in their programme plan Number that met the criteria for success set out in their programme plan will be reported at year end Achieved 34 Department of Conservation Annual Report for the year ended 30 June 2014 • • Natural nentace Performance measures and targets 2013/14 National commentary Pest and weed control: Aquatic animal pests No aquatic animal pest eradication operations were planned 1 aquatic animal pest eradication operation was undertaken This met the criteria for success set out in the programme plan Achieved Post and weed control. Weeds (including aquatic weeds) 109 weed control work plans will be completed using a weed- 115 weed control work plans were completed using a weed-led led approach approacri Achieved 494,902 hectares o` !and wail receive treatment this year for 454.074 hectares of land received treatment for weedi mrig weeds using a site- ea aporoach a site-led approach Not achieved Northern Nortn Island and North and Wester South Island regions reported that more detai'ed assessment of the areas initially targeted resulted n a reauct,on in treatment of 33,000 hectares Lower North Island iegio-i reported a reduct,or' in treatment of 14,000 hectares due to staff shortages ar:s.ng from redeployment of staff and a number of vacancies 1,781,967 hectares of land will be under sustained weed control 1,851,778 hectares of land were under sustained weed control us i ng a s i te - ed approach. using a site- led approach. Achieved Natural heritage restoration 58 restoration oroarammes wili be undertaken (90 percent will 53 restoration programmes were undertaken O` these all met meet the criteria for success set out in their programme plans at the criteria for success as set out in their programme plans year end) Achieved 77 island biosecunty programmes will maintain a pest-free 65 island biosecurity programmes maintained a pest-free status status Not achieved. There were mouse incursions on Maud, Blumine and Waikareiti islands Some reprioritismg of work programmes is also occurring against priority ecosystem prescriptions. Ecosystem management 190 ecosystems will be under active management through 185 ecosystems were under active management through optimised ecosystem prescriptions optimised ecosystem prescriptions Achieved Department of Conservation Annua l Report for the year ended 30 June 2014 35 Natural he-rtage Performance measures and targets' 2013/14 National commentary Species management More than 100 threatened species viii be under active 104 threatened species were under active management through management through optimised species prescriptions optimised species prescriptions Achieved 27 acutely threatened species or subspecies will have 25 'acutely threatened' species or subspecies have improved improved security for one or more populations as a result of security for one or more populations as a result of active active species conservation programmes species conservation programmes. Achieved 14 chronically threatened species or subspecies will have ' 3 chronically threatened species or subspecies have improved improved security for one or more pooulations as a result of security fo, one or more popu'ations as a result of active active species conservation programmes species conservation programmes Achieved 7 'at risk' species or subspecies will nave improved security 7 'at risk' species cr subspecies have improved security for cie for one or more populations as a resilt of active species or more cooilations as a result of active spec-es conservat on conservation programmes programn-es Achieved 50 reclassified at risk' vascular plant and bird species o, 49 reclassi'ed 'at risk' vascular plant arc bird species or suospecies will have improved security for one or more subspecies have improved security icr one or more populations popu,anons as a result of ccuve species conservation as a result of active Species conserat-on orogrammes programmes Achieved 110 reclassified 'tnrearened' vascular plant and bird species 102 reclass.fied 'threatened' vascular plant and 1-id species or or subspecies will have improved security for one or more subspecies have improved security for one or more populations populations as a result of active species conservation as a result of active species conservation programmes programmes Not achieved Eastern South Island region reported that no work was completed on one species due to Port Hills access issues arising from the Christchurch earthquake Central North Island and Lower North Island regions reported staff shortages arising from redeployment of staff and a number of vacancies meant planned work affecting three species was not carried out Northern North Island region reported one species was now covered by a national ecosystem management prescription, while another species was more widespread than initially thought and planned work did not proceed The Department will have achieved improved understanding Improved understanding of status and threats has been of status and threats for 30 'acutely threatened' species or achieved for 27 'acutely threatened' species or subspecies subspecies through survey monitoring and research through survey monitoring and research. Not achieved Central North Island. Lower North Island. North and Western South Island regions reported staff shortages arising from redeployment of staff and a number of vacancies meant planned work affecting three species was not carved out 36 Department of Conservation Annual Report for the year ended 30 June 2014 • • T atural hentace Performance measures and targets . 2013/14 National commentary Species management The Department will have achieved improved understanding Improved understanding of status and threats has been of status and threats for 19 'chronically threatened' species or achieved for 15 chronically threatened' species o~ subspecies subspec,es through survey monitoring and research through survey monitoring and research Not achieved Eastern South Island region reported delays in two Galax;as species programmes - one due to site access issues, the other as a result of an urgent responsa to a pest fish incursion North and Western South Island region reported a delay affecting one species as scarce specia'ist technics! support was not available, while Central North Island rPgion reported a delay to a s,irvey programme due to poor field conditions The Department will nave achieved improved understanding of improved understanding of status and threats has been status and threats for 9 at risk' species or Subspecies through ach'e^ed for g 'at r sk species or subspecies tnrough surrey survey mon.tor ng and research monitoring and research Achieved Improved understanding of status and threats will be achieved Improved understanding of status and threats has been through survey, monitoring, ana research for 49 reclassified 'at achieved for 39 reclassified 'at risk' vascular plant and bird nsk' vase: lar plant and bird species or subspecies species or subspecies Not achieved Eastern South Island region reported delays in one Galaxias species programme due to site access issues Central North Island reported planning errors affected two species which were not due for work this year, wnile one spec,es was on hold pending further advice on a monitoring programme Lower North Island region reported staff shortages arising from redeployment of staff and a number of vacancies meant planned work artecting one species was not carried out Eastern South Island region reported it did not proceed with planned work on two species as technical advice suggested they no longer existed in the area One further species received no work as the nursery site was full North and Western South Island region reported a lack of availab;e technically skilled staff meant one planned programme did not proceed Northern North Island region reported two species were now covered by a national ecosystem management prescription, while one species programme had been included at planning, but had finished in the previous year after planning data was finalised Department of Conservation Annual Report for the year ended 30 June 2014 37 0 0 Natural =entage Performance measures and targets 2013/14 National commentary 51, ei' maniopmpnt Improved understanding of status and threats will be achieved Improved understanding of status and threats has been through survey. monitoring and research for 120 reclassified ach:eved for 103 reclassified 'threatened' vascular plant and threatened' vascular plant and bird species or subspecies bird species or subspecies Not achieved Northern North Island region reported three species were now covered by national ecosystem management prescr,puons Central North Island region reported three species had been included in error at p arising time The region also reported four species programmes did not proceed as scarce specialist technical support was not available Lower North Island req,on reported staff shortages arising from redeployment of staff and a number of vacancies meant planned work affecting four species was not carried out Southern South Island and North and Western South Island regions reported five species programmes did not proceed as scarce specia i'r technical siroport was nor available Eastern Scum, Island region reported one species programme did not proceed due to Port Hills access Issues ans ng from the Christchurch earthquake. The Conserva:;on Services Programme will meet its agreed In 2313/14 1499 days of ooserver coverage was acnieved performance criteria and rn,lestones to monitor protected species interactions in a range cf noth irsho E and offst -ore ';s';enes. Acnievement will be reported at year end A series of population studies was run relating to seabird spec-es the New Zealand sea I-o' c'o'.ected corals and the ocean c whitet p shark Fina' reports can be found on the DOC %kenslte (www doc govt nz/csi)) Mitigation projects focused on ins yore and offshore bottom longline, surface longline and trawl fisheries, a newsletter was produced to communicate such findings to commercial fishermen (See Appendix 3 for a detailed explanation of the Conservation Services Programme I Achieved Hectares of marine areas legally protected during the year 435,673 hectares Three subantarctic marine reserves and the Akaroa Marine Reserve were established in 2013/14 Fully approved marine reserves - yet to be gazetted: Achieved 452.691 hectares (subamaictic islands) Hectares of marine areas gazetted and under sustained Marine reserves (38 reserves) 1 7 million hectares - change management during the year since June 2013 is the addition of the subantarctic islands and the Akaroa marine reserves Marine reserves (33) 1,732,395 hectares Marine Mammal Sanctuaries (6 sanctuaries) 2 35 million hectares Marine mammal sanctuaries (6) The marine mammal data Is derived from the legal area of each 2,345320 hectares marine mammal sanctuary (DOC Conservation Units) which may differ from earlier area calculations using geographic information system tools, because of aspects such as differing projection Achieved 44,276 hectares of terrestrial environment legally protected 26,145 hectares of terrestrial environment were legally protected during the year Not achieved Fewer hectares were protected than had been predicted, because not all tenure review negotiations were concluded by year end. However 17 High Country Tenure Reviews have been progressed to an agreement stage, which relate to substantial areas of high country and these will hopefully be concluded in 2014/15, 38 Department of Conservation Annual Report for the year ended 30 June 2014 Natural her tare Output class operating statement 2013/14: Management of natural heritage Actual Budget Revised Actual budget 30/06/13 30/06/14 30/06/14 30/06/14 $000 $000 $000 $000 Revenue Crown 140,116 145,107 147.196 147 196 Other 17,561 14,369 14,369 14,075 Total revenue 157,677 159,476 161, 565 161,271 Expenses 154.354 162,847 164,936 162,995 Surplus/(deficit) 3,323 (3,371 ) (3,371 ) ( 1,724) Statement of service performance 2013/14: Regional pest management strategies Performance measures and targets 2013/14 National commentary Crown pest and weed exacerbator costs 13 regional pest management strategies with completed The Department conti nued exacerbator weed and pest Crown exacerbator weed and pest programmes orogrammes for 15 regional councils and un tary autho rities Achieved Output class operating statement 2013/14: Regional pest management strategies Actual Budget Revised Actual budget 30/06/13 30/06/ 14 30/06/ 14 30/06/14 $000 $000 $000 $000 Revenue Crown 3,199 3,191 3,514 3,514 Other 109 100 100 - Total revenue 3,308 3.291 3,614 3,514 Expenses 3.160 3.291 3.614 2,927 Surplus 148 - - 587 Department of Conservation Annual Report for the year ended 30 June 2014 39 • Ys.,2. 3r" e 4y3^A r Cape Reinga (re Rerengawawa) lighthouse at dusk. Photo. Rob Su sted / wwwnatwesprc cam 4 0 Department of Conservation Annual Report for the year ended 3o June 2014 'F Overall status Q Increase in the number of key historic sites where heritage assessment reports have been completed 0 Increase in visitor numbers at Historic Icon sites Q Increase in the percentage of key historic sites categorised as stable and not deteriorating Q 0 0 Historic heritage DOC's historic heritage work aims to protect New Zealand's heritage places and to bring New Zealand Ihhe•e are history to life To do this, DOC is continuing to focus investment on the following. Icon destinations, providing a top-quality visitor experience and telling engaging and exciting stories about New Zealand's identity, actively conserved historic places, to ensure a representative sample of heritage is conserved, improving the visitor 0 experience at these places; and at more than 13,000 historic places aclively being conserves historic places on public conservation land and waters we protect fabric from avoidable harm. Benefits of protecting heritage and bringing history to life • Historic heritage provides evidence of the origins of New Zealand's distinctive society and the events and have shaped its character...... processes that 75% • In preserving, protecting and interpreting these places, important links to the past and to New Zealanders' sense of identity are maintained. • Heritage teaches people about New Zealand's culture and the lifestyles of those who settled here, and helps people to understand the issues faced today. • Working with communities and encouraging collaboration in heritage management helps sustain because of the changing nature of threats and the need New Zealanders' sense of identity. to pnontise where work proceeds. By actively managing the most significant sites, we are able to ensure the Change in the percentage of key heritage sites most important examples of New Zealand's history are that are categorised as stable or deteriorating protected for future generations The objective of DOC's work at actively conserved From 2010/11 to 2012/13 the number of sites categorised historic places is to mmunise the physical impacts that as stable had declined. This trend has been halted, and are threatening their mtegnty and survival. The number the number of stabilised sites has increased from 269 in of places categonsed this way changes slightly each year, 2012/13 to 273 in 2013/14 (see table 3) Table 3: Number of key heritage sites that are categorised as stable or deteriorating. 2010/11 2011 /12 2012/13 2013/14 Stable 290 310 269 293 Deteriorating 211 287 338 311 42 Department of Conservation Annual Report for the year ended 30 June 2014 0 0 - ______- ___ Historic her tage Table 4: The number of key heritage sites at which the core history is safeguarded, the values identified and communicated. 2011 /12 2012/13 2013/14 Places with heritage assessments 12 52 53 Increase in the number of key heritage sites their potential to bring history to life, these sites are New at which heritage assessment reports have Zealand's best places to tell great stones about the Kiwi been completed identity, increase tourism and generate economic benefits To safeguard New Zealand's history it is essential to Visitation is monitored to determine trends in use, and first understand it To do this, DOC prepares heritage use levels reflect the effectiveness of promotion and assessments These describe a historic place and the appeal of the site itself Visitation is one way of reflecting fabric and cultural connections. significance of its history, on the benefit of heritage sites Visitor count data is used The publication of these assessments on the DOC to show visitation trends (see figures 5, 6 and 7) Note that website is one way of bringing history to life. Fifty-three the scale for figure 5 is much larger than the scale actively conserved historic places have now had heritage for figures 6 and 7 assessments published on the website (see table 4) Visitor counts for 2013/14 show that visitation to Change over time in New Zealanders' the majority of Historic Icon sites is stable, with the awareness of DOC as an administrator exceptions noted below. of historic heritage sites • Denniston Mine continues its strong trend, increasing DOC surveys New Zealanders (Nielsen 2014) to gain an by 39 percent compared with 2012/13, and visitation understanding of their level of awareness of its hentage more than doubling since 2010/11 conservation work, whether they visit historic sites and, if they do, what sort of experience they have at those places. • Waitawheta Valley continues its strong trend, increasing by 23 percent compared with 2012/13. Public awareness of DOC's role in managing 13,000+ heritage sites is important for conservation partnerships. • Visitation to the Arrowtown Chinese Settlement We are now seeing a relatively high level of public increased by 13 percent compared with 2012/13 awareness. Public awareness rose from 61 percent in Bridge to Nowhere continues its strong trend, 2012/13 to 67 percent in 2013/14. • The increasing by 10 percent compared with 2012/13 Change over time in New Zealanders' • Keriken Basin continues a downward trend, decreasing participation in historic heritage on public by '7 percent compared with 2012/13. conservation lands and waters DOC's population survey (Nielsen 2014) indicates Change over time in New Zealanders' 48 percent of New Zealanders visited DOC historic satisfaction with the quality of historic heritage sites compared with 47 percent in 2012/13. This is a new opportunities provided indicator, so the data does not yet show an evident trend Bringing history to life is essential for ensuring visitors participation historic heritage by New Zealanders. of in have a memorable and satisfying experience We can assume that visitor satisfaction leads to their gaining an Change in the number of visitors at Historic understanding of the value of heritage and, therefore, to Icon sites for 2013/14 support for protecting it. Engaging New Zealanders with their heritage includes encouraging them to visit Historic Icon sites. Selected for Department of Conservation A nnua l Report for the year ended 30 June 2014 43 0 0 Historic hentage 90-l 80 70 - L UV I K,rannahake_ Gorge^_ 50 Kenken Basin o 40 Ship Cove, Marlborough Sounds > 30 0 Otago Rail Trail ca c cc 20 p--4 ^'- - -0 10 0 2007/08 2008/09 2009/10 2010/11 2011/12 2012,113 2013/14 Figure 5. Change over time in the number of visitors to Historic Icon sites: Kenken Basin, Karangahake Gorge, Ship Cove, and Otago Rail Trail. 20 a 16 C C^ C 0 t y '2 Bridge to Nowhere C C O O Ruapekapeka Pa `0 8 Cape Brett Lighthouse S C 4 0 Figure 6: Change over time in the number of visitors to Historic Icon sites- Cape Brett Lighthouse, Ruapekapeka Pa, Bridge to Nowhere. 24 20 D CC 16 ti Denniston c 0 12 D Old Coach Road, Ohakune O N Waitawheta Valley t 8 C C O Timber Trail . Pureora 4 0 Figure 7 . Change over time in the number of visitors to Historic Icon sites. Old Coach Road , Denniston, Waitawheta Valley, Timber Trail/Pureora. 44 Department of Conservation Annual Report for the year ended 30 June 2014 • Histo c heritage Since 2012/13, when measurements started, a relatively high rate of visitor satisfaction with visits to heritage 2012/13 places has been reported The number of dissatisfied visitors decreased compared with the previous year, and overall level of satisfaction was maintained. This is a new indicator, so the data does not yet show an evident trend 2013/14 of visitor satisfaction. Figure 8 shows the satisfaction with the quality of the 0 20 40 60 80 100 historic heritage opportunities provided, combining the results for people rating 4 and 5 on the 5 point scale Satisfied (5 = very satisfied) and also combining results for 1 and 2 Neither satisfied nor dissatisfied (1= very dissatisfied) A rating of 3 is considered here to Dissatisfied mean 'neither satisfied not dissatisfied' Figure 8. Percentage of New Zealanders' satisfaction with the quality of historic heritage opportunities provided Achievements in 2013/14 • A book entitled Historic Places ofNew Zealand is • The Milfrord Track, one of the Great Walks and a due to be released in September 2014. Produced in historic track, celebrated its 125th anniversary this collaboration with the well-known photographer Rob year As a special event, 40 walkers in period costumes Suisted and New Holland Publishing, it provides a went on a 4-day experience, fundraising towards the highly visual introduction to New Zealand's heritage reconstruction of the historic Beech Hut, which will places. Most of the sites featured are on public be rebuilt alongside the track to recreate the style and conservation land. This publication also takes an inter- atmosphere of the historic experience. This will be agency approach, and includes many places managed done in conjunction with Fiordland Museum Trust and by Heritage New Zealand. other Milford Track stakeholders. Heritage features at actively conserved histonc places Structures (e g bridges , culverts) 111 Other /buildings 224 Other 184 Earthwork/ mining features 71 Military structures, 229 Other roads and tracks 18 Visitor walking tracks: Huts or 75 shelters: 73 Items of Industrial machinery 140 buildings: 25 Artefacts and Maon and other archaelogical collections. 25 sites (including pa sites) 403 Department of Conservation Annual Report for the year ended 3o June 2014 45 0 0 Historic hertage • Restoration of the Manganuku Bridge has started. The • The Department led a collaborative partnership training budge is one of only two exceptional wooden highway initiative that up-skilled 28 heritage professionals from bridges in New Zealand. Located in the Waioeka Gorge Heritage New Zealand, the Ministry for Culture and adjacent to State Highway 2, it is a focal point in the Heritage and DOC. The professional training on using area, next to a DOC campground and the start for comparative analysis to identify New Zealand's very several walking tracks. best heritage sites will help pnontise investment in heritage restoration and tourism initiatives. • At Mason Bay, West Ruggedy, and Fortrose (Stewart Island/Ralaura), early Maon remains have been excavated and reinterred to save them from coastal Outputs that contribute to this erosion and subsequent destruction. Partnering up intermediate outcome with Oraka-Apanma Runanga, Awarua Runanga, Wathopai Runanga, Heritage New Zealand and the The output classes and output groups that contribute University of Otago, scientific analysis will be carved to this intermediate outcome are set out in Appendix out on some of the remains, providing iwi with new 2 and are reported on in the statement of service information on their ancestors performance below. Statement of service performance 2013/14: Management of historic heritage Performance measures and targets 2013/14 National commentary' Historic heritage restoration 27 his orc or cultural heritage assets or which remedial work is Remed i al work was undertaken to standard on 17 historic or coin ;leted to standard cultural heritage assets Not achieved Southern South Island, Central Nortn Is.and and Northern North Island regions all reported a cnange 'n priorities during the year affecting eight heritage assets Central North Island region also reported deferring one protect at the request of iwi pending Treaty Settlement 1 338 historic or cultural heritage assets for which regular Mantenance work is on track for 984 historic and cultural mantenance work is on track to standard heritage assets. Not achieved All regions except Southern South Island reported reviewing priorities during the year as the new regional structure was bedded in Northern North Island reported the biggest change affecting 242 heritage assets at North Head which were consolidated into a more manageable ongoing maintenance programme. 26 historic or cultural heritage assessment reports completed to Six historic or cultural assessment reports were completed to standard standard. Not achieved. All regions reported difficulties achieving targets while bedding in the new regional structure as scarce technical input was often required to complete projects and was unavailable while vacancies were being filled. This affected 19 heritage assessment reports DOC considers that performance has been achieved when the output is within a tolerance level acceptable for the nature of the operation. For field operations, this is generally within plus or minus 10 percent of the projected performance target. For significant outputs however, as shown on the 'Summary of output performance' table, this tolerance is plus or minus s percent. When outside these ranges, a variance comment is provided. 46 Department of Conservation Annual Report for the year ended 30 June 2014 Historic her tage Output class operating statement 2013/14: Management of historic heritage Actual Budget Revised Actual budget 30/06/13 30/06/14 30/06/14 30/06/14 $000 $000 $000 $000 Revenue Croton 5,188 5,360 5,151 5151 Other 13 114 414 15 Total revenue 5 201 5,774 5,565 5,166 Expenses 4717 5,774 5,565 4,763 Surplus 484 - - 403 Department of Conservation Annual Report for the year ended 30 June 2014 47 G x .. 4101, ky. 1 ^.( Mtn ;^ %W a ^s Mountain bikers on Macetown Historic Reserve, Anowtown Photo Rob Suisted / wwwnaturespic coin 48 Department of Conservation Annual Report for the year ended 30 June 2014 Department of Conservation Annual Report for the year ended 30 June 2014 49 0 0 Rec-eanon DOC's recreation work aims to increase the number of New Zealanders and international visitors who enjoy the outdoors because an outdoor experience adds real value to all our lives. To do this we are continuing to focus investment in visitor and tourism needs in the following 74% ways At Icon destinations we are providing a top-quality experience for visitors that is encouraging them to New Zealanders aged 18+ : isited return. At Gateway destinations we are focusing on new of Dub;ic .3onse,-,3(01 lard last year . audiences, introducing the next generation and growing family participation. At the places they value the most, we are empowering and helping local communities to take greater ownership. In the unique adventure playground that is New Zealand's backcountry, we are empowering people to be self-reliant and `at one with nature' At all places we want people to enjoy themselves Benefits of increasing people's 2.5 enjoyment of the outdoors million • New Zealanders improve their health and wellbeing through taking part in outdoor recreation. • New Zealanders are provided with opportunities to learn about and contribute to the protection and enhancement of natural and historic heritage. • International visitors see New Zealand's most beautiful How are we doing? and iconic locations and promote New Zealand as a desirable destination to their friends and family The Department surveys the New Zealand population to gain an understanding of the level of awareness of • Outdoor recreation supports transport, DOC's recreation opportunities , overall participation accommodation, equipment suppliers and local rates and levels of satisfaction.` businesses near conservation areas Table 5: Percentage of New Zealanders aware that DOC is a provider of recreation opportunities. 2009/ 10 2010/11 2011 /12 2012/13 2013/14 Percentage of New Zealanders (Telephone survey) 60% 78 % 77% 82% Percentage of New Zealanders (Online/postal survey) 81% 79% • Statistics quoted in this section are from the Survey of New Zealanders, 2014. Report prepared for the Department of Conservation The Nielsen Company, Wellington 50 Department of Conservation Annual Report for the year ended 30 June 2014 Recreaticn 80 70 Visitation to Public Conservation Lands (postal survey) m 60 C co Visitation to Public Conservation d 50 N Lands (telephone survey) m Z 40 0 Q Visitation to national parks m m (postal survey) m 30 C 1) 2 20 5, Visitation to national parks o- (telephone survey) 10 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Figure 9. Percentage of New Zealanders participating in recreation on public conservation lands and waters This survey shows that that there is a relatively high closer to home. A new survey methodology has provided level of awareness of DOC as a recreation provider, and more confidence in the results we extrapolate from this that our efforts at promoting recreation on public conservation land are encouraging New Zealanders' frequency of visiting public more people to visit The frequency of visitation is also conservation lands and waters tncreasmg, and the level of satisfaction is constant Compared with 2012/13, the frequency with which New Zealanders have been visiting public conservation lands New Zealanders' awareness of DOC as a and waters has increased Participation once a month recreation provider or more often increased from 8 percent to 11 percent in Overall, New Zealanders' awareness of DOC as a 2013/14. Participation between once a month and once recreation provider has been high for the past 4 years, every six months also increased, from 27 percent to 30 although a minor decrease in awareness occurred, from percent. 81 percent in 2012/13 to 79 percent m 2013/14. The 5-year New Zealanders' reasons for visiting more or trend shows a significant rise in awareness at the start less often of the penod. Compared with 2012/13, awareness levels People surveyed were asked if there had either been an have been maintained (see table 5) increase or a decrease in their participation in the last 12 New Zealanders' participation in recreation on months compared with the previous 12 months. Those public conservation lands and waters who said their use was more compared with 12 months ago made up 15 percent of respondents and those who Previous years showed a trend of increasing participation reported they were now participating less often made up in recreation by New Zealanders Having declined briefly 23 percent. Table 6 shows the main reasons given. between 2011/12 and 2012/13, participation rose notably from 71 percent in 2012/13 to 74 percent in 2013/14 (see DOC can directly influence people's choices and figure 9) This increase may be because of promotional encourage more active participation through the access, efforts and the economic downturn, which may have facilities and information it provides to visitors to public prompted New Zealanders to look for holiday options conservation lands and waters However, some of the Department of Conservation Annual Report for the year ended 30 June 2014 51 0 0 R°CEation factors that influence people's leisure choices are beyond Table 6: New Zealanders' reasons for visiting DOC's immediate influence Further management public conservation lands more or less often. actions can be made in this context. Activities enjoyed by New Zealanders on public Top five reasons for visiting more often (%) conservation lands and waters Increased awareness, aporeciation. and 23 Understanding the activities most enjoyed by New involvement in the environment Zealanders in DOC-managed areas enables DOC to Family actwit.es-children now a good age for 18 invest in the more popular options. outdoor act:vit,es Sightseeing appears to now be more popular than short Have more tree time for recreation 14 walks as the activity enjoyed by most New Zealanders visiting public conservation lands and waters. However, Closer and/or better access to DOC areas 10 walks of less than a day (short and day walks together) remain by far the most popular activity A small overall Enjoy wal.v ig hiking, tramping in DOC areas 9 increase can be seen for family and friends outings and mountain biking and cycling, while overnight and multi- day tramps, camping and hunting experienced a minor Top five reasons for visiting less often (%) decline compared with the previous year (see table 7). Health issUes 18 Activity insights Too bisy with work commitments 15 Walking: Walks of less than one day (short walks and day walks) remain the most popular activity on public Have less spare time (unspecitied^ 14 conservation land and for New Zealanders generally. Age re a:ed 11 Popular walks such as the Tongartro Alpine Crossing, Franz Josef Valley Walk and Huka Falls are significant Change in personal circumstances 9 tourist attractions, continuing to support tourism and provide economic benefits to local communities Table 7: Activity rates by New Zealanders on public conservation lands and waters. 2010/11 2011/12 2012/13 2013/14 Main activity camed out on last visit (%) (%) (%) (%) Sightseeing 11 10 24 26 Short walks 29 35 25 25 Family or friends outing 7 7 15 16 Day walk 12 10 10 10 Mountain biking or cycling N/A N/A 3 4 Overnight or multi -day tramp 3 3 4 3 Camping 4 5 4 3 Hunting 3 4 3 2 Other activities 31 26 12 11 52 Department of Conservation Annual Report for the year ended 30 June 2014 R1eereatic:i Table 8: Facilities used by adult New Zealanders during the past 3 years. 2008-11 2009-12 2010- 13 2011 -14 2014-17 Facility type used (%) (%) (%) (%) (%) (5-year target) Stayed at campsite' 21 20 20 19 20' Stayed in but/lodge'hcuse 13 13 13 13 15 Been to DOC visitor centre 51 49 '7 43 60 Waked a Gr"at Walk i 5 14 15 16 N/A Tramping: DOC's premier tramping opportunities network, enabling access and providing facilities, continue to be a success, with overall visitation to the supports hunting, including guided hunting. Great Walks having increased by 9 percent over the Cycling and mountain biking: In the past decade there past year to reach around 95,000 visits. The Great Walks has been a considerable growth in demand for trail-based continue to support vanous commercial operators, cycling opportunities in New Zealand (Tourism Resource enabling guided and independent visitors to enjoy the Consultants 20og). DOC currently has 1,600 kilometres outdoors Across the backcountry, DOC is working with of track available for mountain bikes Also, 19 of the 22 stakeholders, including Federated Mountain Clubs of Great Rides developed as part of national cycleways New Zealand, New Zealand Deerstalkers' Association, are on public conservation land, and DOC has opened Trail Fund and community groups, to encourage a wide three tracks in the Kahurangi National Park for biking range of users to enjoy and look after these special places Advances in electric bike technology are allowing less Camping: Around 110,000 New Zealanders choose to fit or able people to enjoy the outdoors With growing have tent-camping holidays each year (Roy Morgan numbers of sales of these bikes, including mountain Research 2012). Almost 50,000 overseas visitors stayed bike models, DOC can expect more use of the trails it at a DOC campsite in 2013/14 (Statistics NZ 2014) manages, leading to an increase in the number of DOC is one provider in a larger sector, and generally cycling visitors. caters for more basic and self-sufficient experiences Since 2010, DOC has upgraded several high-use coastal DOC facilities used by adult New Zealanders campgrounds in Northland, Coromandel and Nelson- during the past 3 years Marlborough, where demand for camping is greatest. Information on New Zealanders' participation in activities in DOC-managed areas is summansed in table 8 and has Hunting: Recreational hunting on public conservation been compared with DOC's participation targets in the land remains a chosen recreation (and, in many cases, 2013-17 Statement of Intent. Respondents were asked to food gathering) activity for 2 percent of the population their participation in selected activities over the past Various types of hunting are available, ranging from big recall shown. This information game hunting in the backcountry to hunting gamebirds, 3 years, hence the year ranges guide typically on wetlands closer to home The backcountry about DOC's more popular destinations is used to provision of facilities and services. For 2008- 11 and 2009-12 the proportion of New Zealanders who had visited a basic, standard and/or serviced campsite was measured separately This indicator was changed for 2010-13 onwards, and now measures the proportion who have visited any kind of campsite Because of a lack of data for the total proportion staying at campsites from 2008-11 and 2009-12 , the proportion saying that they stayed at a basic DOC campsite was used, as it was by far the most frequented type of campsite. t Previous reports provided targets for basic (25 percent), standard (20 percent), and serviced (15 percent) campsites. With the indicator having changed to measure the proportion of people who had visited any land of campsite, the target has been based on the average of the previous targets. Department of Conservation Annual Report for the year ended 30 June 2014 53 0 0 ------ Recreation The proportion of New Zealanders using DOC in visitations to DOC destinations. From comments accommodation has been stable over the past years. received from visitors via the DOC website, we can also The number of New Zealanders walking Great Walks assume that the condition of facilities people encounter has been on the increase, while visitation at DOC visitor will influence their levels of satisfaction (Department centres continues to decline. of Conservation 2014c). Figure 10 from the population- based survey shows both the overall level of satisfaction with the quality of New Zealanders' satisfaction with the quality of the experience and opportunities opportunities provided the experiences and provided and the performance of facilities to standard, We can assume that satisfied visitors are more likely as measured by onsite inspections against service level to become repeat visitors and tell positive stones cntena. The relationship between these sets of dates is about their experiences. This can lead to an increase not proven but interesting to consider. 100 90 80 a y Percentage of structures to stancard c 70 m N w i6 Percentage of hits to standard O N 60 N'= N N 50 Percentage of trac. s to stancard N 40 C C 2 30 N U a 0 20 10 100- 90 -' 80 ' D^- N Visitor reported satisfaction c c 70 IO N N l0 O N 60 N p N N 50 N N ,^ O ° 40 C C 2 30 m 61 a 0 20 10 0 2007/08 2009/09 2009110 2010/11 2011112 2012/13 2013/14 Figure 10: New Zealanders' satisfaction with the quality of visitor facilities and opportunities provided compared with the standard of three main facilities provided. 54 Department of Conservation Annual Report for the year ended 3o June 2014 • • Recreation From 2007/08 onwards a high rate of visitor satisfaction • The Tasman Glacier road in Aoraki/Mount Cook has been reported. The satisfaction level roughly National Park has been realigned and sealed in tracks the performance standard at facilities, but in partnership with the New Zealand Transport Agency, 2013/14 visitor satisfaction went up by 2 percent while making it easier and safer for visitors to access the valley. The new alignment keeps visitors safe from the percentage of facilities meeting standards went rockfall and avalanches, and the new road surface has down. The drop in performance of facility maintenance enabled vehicle hire companies to allow their vehicles is attributed to the disruption caused by DOC's to be driven on this road. organisational review and restructure over the past couple of years. • With 16 percent of New Zealanders having enjoyed a Great Walk over the past 3 years, the use of this resource is now the highest it has ever been, and a Achievements in 2013/14 major contribution has been the partnership with Air New Zealand. Most of the Great Walks recorded • An eruption detection system was installed on Mount significant gains in participation, with the Tonganro Tonganro, enabling the Tonganro Alpine Crossing to Northern Circuit alone gaining 35 percent in total be reopened to visitors after being closed by the Te visitation. Maan vent eruption. A lighted sign system at each end of the track and in the middle section indicates the status of the area's volcanic activity, helping visitors to Outputs that contribute to this make sound decisions about safe travel intermediate outcome • The Tarawera Trail was opened, forming the first stage The output classes and output groups that contribute of a three-part project which will link Lakes Tarawera, to this intermediate outcome are set out in Appendix Rotorua, Tikitapu/Blue Lake, Rotokakahi (Green Lake), 2 and are reported on in the statement of service Okareka, Rotomahana and Okataina The project has performance below. been driven by the Tarawera Trail Trust, a partnership between landowners, Maon land-owning trusts, and DOC, and aims to develop a world-class experience • After a 3-year trial, seasonal mountain biking on the Heaphy Track has been approved as an ongoing activity. The trial showed a 22 percent increase in visitor numbers. This result is expected to have a positive impact on the local economy. Department of Conservation Annual Report for the year ended 3o June 2014 55 • • Recreation Statement of service performance 2013/14: Recreation opportunities Performance measures and targets: 2013/14 National commentary' Recreation opportunities management Number of vis;tor recreation and interpretation publications 25d visitor recreation and interpretation publications out of a meeting publication standard w-th a target of total of 270 met publication standard (94 percent) (target 259). 90 percent Achieved Asset management Number of huts meeting required service standard w.'h a target 679 huts out of 976 met the required service standard (70 percent) of 90 percent to standard Not achieved 175 o` the 297 huts not ;o standard were as a result of outstanding service standard tasks These tasks are part of the normal ongoing mar -,tenance o ograr•me and are not considered serious or critical 148 huts had outstanding nspections at yea, end This represents a lag in inspections as a result of moving during the vear ` orn the locally-run nspectiort programme to a Regional approach aimed at improving o,,erall effect-veness of the asset management programme Kilometres of tracks meeting requ,red seroce standard in each 6819 Kilometres out of 14,529 kilometres of tracks met the visitor croup with a target of 45 percent to standard required service standard (47 percent) Achieved Number of structures meeting the required service standard 12,261 structures out of 13.259 met the required service with a target of 95 percent standard (92 percent) Achieved Business opportunities management: Recreation concessions 403 active one-off recreation concessions will be managed 266 active one-off recreation concessions were managed Not achieved. The demand for these types of permission vanes. There has been less demand this year than for the previous year A target of 15 percent of active longer-term recreation 39 active longer-term recreation concessions were monitored concessions will be monitored annually, out of 1349 that were managed (3 percent) (target 18T) Not achieved. The regions reported difficulties achieving targets , in part due to capability issues as they bedded in the new regional structure, and also a focus this year on planning how to work better with concessionaires. ' DOC considers that performance has been achieved when the output is within a tolerance level acceptable for the nature of the operation For field operations, this is generally within plus or minus to percent of the projected performance target. For significant outputs however, as shown on the 'Summary of output performance' table, this tolerance is plus or minus 5 percent When outside these ranges, a variance comment is provided. 56 Department of Conservation Annual Report for the year ended 30 June 2014 • Recreation Performance measures and targets 2013/14 National commentary Business opportunities management Recreation concessions 1245 active longer-term recreation concession permits. 1349 active longer-term recreation concession eermits licences leases and easements managed licences, leases and easements were managed. Achieved Business opportunities management : Other resource use concessions 99 active one-off other resource use concessions will be 74 active one-off other resource use concessions were managed managed Not achieved The demand for these tyres of perm ssion varies While tnere was an increase in demand for gravel extraction in the southern South Island, there was ;ess demand for othe- types of application this year A ta,get of 15 percent of active longer-term othe• resource use 217 acl ve longer-term other resource use concess.ons were concess-ons will be monitored annial,y monitored out of 3145 managed concessions 17 percent) Not achieved The regions reported difficulties achieving targets in oart due to capability issues as they bedded in the new regional structure and also a focus this year on planning how to work better with concessiona-res 2860 active longer-term other resource use concession permits, 3145 active longer-term other resource use concession permits, licences, leases and easements managed licences, ;eases and easements were managed. Achieved Output class operating statement 2013/14: Management of recreation opportunities Actual Budget Revised Actual budget 30/06/ 13 30/06/14 30/06/14 30/06/14 $000 $000 $000 $000 Revenue Crown 122,536 121,052 122 966 122 966 Other 20,582 21,598 23,598 22 524 Total revenue 143,118 142,650 146,564 145,490 Expenses 137,950 144,650 148,564 144,169 Surplus/(deficit) 5,168 (2,000) (2,000) 1,321 Department of Conservation Annual Report for the year ended 30 June 2014 57 01 rp VA t'rrf 0", j k ^y 4 ,_}+:+,yr I ^ 711 ^ ► w + ^^ti ^ ^^j ^f +(' <_ ^ii ^ '-_-' ^y t eat ^ ^ ^'Sw "« t ^ r^v^^^^+I^`i^^^`r^ '^^^°y^h^ ^f.rr •r h, • AIL- ^1 a fi rf^ •J • r {^' i'i +i ^r 1T j rf+i t. 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A v ^.. ^ ^f • • Enca errent Benefits of more people engaging with conservation Engaging with our historic sites and our natural world 6500 helps build our identity as New Zealanders From increased engagement, we can expect to see a strong connectedness with nature and higher levels of physical Ull4 ce ple partcipa:ed r -.e and mental wellbeing. Experiencing Marine Reserves In addition, participating in and contributing to r;rograrnma conservation allows people to enjoy and learn about nature and heritage, and to connect with others with similar interests. People and organisations are then able to develop the skills and knowledge they need to do conservation work. Ultimately, we would like to see all New Zealanders working alongside DOC to protect, restore and enjoy the nation's natural, historic and cultural hentage, contributing to our wellbeing and New Zealand's economic success. DOC has made a significant shift in the past 12 months to focus more strongly on working with others to grow conservation in New Zealand. To achieve this, we are • Working to increase the public's awareness of and interest in conservation DOC uses social media to engage more people with conservation-helping to increase awareness, with and supporting others • Engaging and partnering understanding and commitment amongst New contribute to conservation to Zealanders. In 2013/14 DOC increased its reach with • Profiling the importance of conservation as an the launch of its Wildside New Zealand community investment in a healthy and prosperous New Zealand. on Facebook and Twitter, and new DOC Pinterest and Instagram accounts DOC's most popular account Change in New Zealanders' continues to be the Facebook page of Sirocco the kakapo, New Zealand's official'spokesbird' for conservation. At 30 understanding of important June 2014, Sirocco's Facebook page was New Zealand's conservation issues fastest growing community page (Socialbakers n.d), with over 76,000 followers.* This is a 348 percent increase As noted previously, DOC uses an annual population- on the same time last year' and makes Sirocco the Both based survey (Nielsen 2014) to track New Zealanders' most popular community page in New Zealand. understanding and perceptions of conservation. The 2014 survey results showed that 8o percent of people felt that conservation is very important or important to them personally (figure ii). This level of importance is relatively stable, with 81 percent responding last year that ' As at 30 June 2014, the page had 76,108 followers conservation was important to them. t As at 30 June 2013, the page had 17,004 followers. 60 Department of Conservation Annual Report for the year ended 30 June 2014 Engagement Conservation management strategies set out how DOC relationships with stakeholders were continuing to looks after natural and histonc resources on behalf of all operate well although several stakeholder organisations New Zealanders. The submission process is the public's felt there was opportunity for greater collaboration and opportunity to influence the strategy and the decisions resource shanng. and actions that result from it. The Canterbury, Otago The Community Conservation Partnership Fund and Southland strategies were publicly notified for Putea Tautiaki Hapon (CCPF) was established in 2014 submissions in late June 2013, and 1081 submissions were to provide funding and support to community-led received for these strategies. The number and quality of conservation projects throughout New Zealand. The the submissions indicated strong levels of engagement fund offers $26 million over the next 4 years. Ninety- and interest in conservation management by members nine projects have been approved for funding over the of the public, twi, national agencies and businesses next 3 years. Of these, six are national projects and the remainder are regional or local projects Fourteen of the Change in the quality of DOC's approved conservation projects are being led by whanau, engagement with key associates hapu and iwi groups continue to make an important contnbution Research on DOC's engagement with key associates is Volunteers communities throughout New held every 2 years and will next be undertaken in 2014/15. to conservation and to workday equivalents were The 2012/13 research consisted of in-depth interviews Zealand. In 2013/14, 35,149 people volunteering, well exceeding the with senior staff of 45 stakeholder organisations (at contributed by the chief executive and/or general manager level or target set their direct reports). The results indicated that DOC's 100 90 80 70 C M m 60 N 0 50 z m 40 rn C 30 20 10 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Figure 11: Percentage of New Zealanders who consider conservation is important or very important to them personally. Department of Conservation Annual Report for the year ended 30 June 2014 61 • • Encagerrent Change in the satisfaction of tangata indicators relating to tangata whenua engagement are aligned and integrated. whenua with DOC's activities to help them maintain their cultural Effective engagement with tangata whenua enhances the conservation of natural resources and historical relationships with taonga and cultural heritage. While DOC has a statutory This indicator was not measured in 2013/14 because responsibility under section 4 of the Conservation Act DOC is developing an integrated monitoring framework 1987, DOC also seeks to support partnerships with for its engagement and business intermediate whanau, hapu and iwi based on Maon values (including outcomes. As part of this process, both the indicator karttakttanga) In 2013/14,30 percent of DOC's and the methodology will be reviewed to ensure that all partnerships involved tangata whenua. Abel Tasman National Park - Project Janszoon Abel Tasman National Park's native forest and birdlife Releasing the kakariki was only possible because is transforming thanks to a $25 million partnership of an extensive stoat trapping network covering 70 between DOC and the Project Janszoon Trust percent of the park, which should provide a safe habitat for the native birds to flourish Since its launch 2 years ago, Protect Janszoon has taken big steps towards its goal of restoring the Abel Alongside this, DOC and Project Janszoon are Tasman National Park ecology by 2042, the park's working with the Abel Tasman Birdsong Trust, which 100th anniversary. In 2013/14 alone, pest control has is also involved in the restoration of Abel Tasman been put in place, species and ecosystem restoration National Park, particularly the wilding pine project and translocation to Adele Island The 2013/14 year is progressing and a virtual visitor centre' phone app robin has seen the Trust progress work on significant areas and park wi-fi network have been created to provide within its wilding conifer project Visitors to the park information about the project and park to visitors can now see large areas of this invasive tree species One significant achievement this year has been the browning-off as part of the wilding conifer positioning release of 12 kakariki (yellow-crowned parakeet) into programme Once considered a job too big to tackle, the park These are the first captive raised kakariki the Trust has demonstrated that a systematic and to ever be released onto the New Zealand mainland sustained approach works. South-East Marine Protection Forum/Roopu Manaaki ki to Toka In March 2014 , the membership of the South-East policy, the forum will take a collaborative approach by Marine Protection Forum was announced by the seeking to involve all stakeholders, local communities Minster of Conservation . The 14-member forum is and interest groups. It is expected the forum will make tasked with developing options for marine protected its recommendations to the Minister of Conservation areas along the Otago coast, New Zealand's only and Minister for Primary Industries by early 2016 on region without a marine protected area The process the locations and types of marine protected areas that follows the planning principles provided in New should be established in the Otago region. Technical Zealand 's Marine Protected Areas Policy, which seeks support, including innovative tools to aid collaborative to establish a network of marine protected areas that and participatory planning, as well as information and is comprehensive and representative of New Zealand's advice will be provided to the forum by DOC and the marine habitats and ecosystems As set out in the Ministry for Primary Industries. 62 Department of Conservation Annual Report for the year ended 3o June 2014 Engagement Achievements in 2013/14 Thee are • Forty-three toutouwai/North Island robin were translocated from Waikato to Moturua Island, Bay of Islands, as part of the Project Island Song partnership between the Department of Conservation, Patukeha 214 and Ngati Kuta, and Guardians of the Bay of Islands • The successful Poutin Ao o Tane partnership between the Department of Conservation, the Hawke's Bay groups working r,,i community ecological Regional Council, Maungahaniru Tangitu Trust, Ngati restoration 1;rc:jec:s ne wc.-k r g througr ,re Pahauwera, Ngati Hineuru, Landcare Research and Na ._,-e Soace P.eos to various Hawke's Bay landowners and businesses has resulted in the successful breeding of kaka following the release of six birds into the wild in February 2014 • The Wakatipu Wilding Conifer Control Group is a joint multi-agency and community entity involving DOC, Land Information New Zealand, Queenstown Lakes District Council and landowners and the community in the Wakatipu district This year, the partnership treated over 8000 hectares of wilding pine to control and contain its spread within the Wakatipu district. Outputs that contribute to this intermediate outcome The output classes and output groups that contribute to this intermediate outcome are set out in Appendix 2 and are reported on in the statement of service performance below Department of Conservation Annual Report for the year ended 30 June 2014 63 0 0 Engagerrent Greening Taupo The sanctuary plans to re-establish more threatened species capable of living within the area, such as 'Kia tangs at to tine parirau' kakariki. To hear the sound of many wings More than 3000 trees were planted at the first Greening Taupo is a community conservation initiative planting day held in conjunction with one of the many aimed at bringing back the birdsong to Taupo. The community partners, Contact Energy As Greening concept came about following informal discussions Taupo will work closely with The Enviroschools between DOC, one of the key partners, Project Foundation, it was encouraging to have 17 schools Tonganro, and the owner of the Wairakei Golf and from all around the central North Island represented at Sanctuary the planting day. The goal is to replicate the intensive conservation Within 5 years Greening Taupo hopes to achieve a work happening within the Wairakei Golf and number of milestones: Sanctuary at a landscape scale in the surrounding • Greening Taupo is a well known, financially community The Wairakei Golf and Sanctuary sustainable entity within the Taupo community. built a predator-proof fence around the sanctuary, enclosing approximately 160 hectares. to create a • At least 25 businesses, organisations, schools and unique experience where golfers can experience community groups are undertaking restoration New Zealand's wildlife Inside the sanctuary, with projects facilitated by a local coordinator the exception of mice, all mammalian pests were • The Taupo community has planted at least 250,000 eradicated in 2010. suitable plants under the Greening Taupo umbrella Extensive areas of indigenous forest are being • Pest control to enhance native bird survival has restored at the sanctuary to enhance the habitat been implemented within at least three key areas of for native birds, which already have increased in native habitat. abundance and are spreading out into the surrounding area The sanctuary has plans to reintroduce suitable • Lakeshore kowhai forests are being successfully species and is already being used as a kiwi creche- restored juvenile kiwi that unfortunately would usually be killed • Kakariki have been introduced to the Wairakei Golf by introduced predators are grown to a relatively safe and Sanctuary, are increasing in numbers and are size before being released back into kiwi sanctuaries spreading out into the wider community 64 Department of Conservation Annual Report for the year ended 3o June 2014 0 0 -- Engagement Statement of service performance 2013/14: Engagement Performance measures and targets * 2013/14 National commentary' Education and communication 747 education initiatives will be orov,ded during the year 665 education initiatives were provided during the year, with greater than 70 percent of participants surveyed rating Not achieved the initiatives as 'moderate or 'significant' at meeting their objectives Inc disrup+ion and capacity issues arising from the organisational restructure were reasons for reduced events, as we'I as c-rcumstances beyond DOC's control such as the cancelled Golden Bay A&P show 950 participants were su-veyed about the effectiveness of the nit atives, and 917 (96 percent) rated toe initiatives as 'moce' ate' or 's.gnrfrcant' at meeting their objectives. 32,935 workday equivalents w II be contributed by peoo e 35,149 workday equ;va' ents were contributed by people volunteenno volunteering Achieved Participation 573 partnerships will be run during the year with greater than 605 partnerships were run. 80 percent of partners surveyed rating the:r contribution to 94 percent of partiapaots (136 of 145 sJrveyed) rated the initiat,ves conservation as 'effective' or'partly effect-ve' as 'effective' or'partly effective' at meeting their ob;ectives Achieved 30 percent of partnersh,ps involve tangate whenua 180 of the partnerships run involved tangata whenua (30 percent) Achieved DOC considers that performance has been achieved when the output is within a tolerance level acceptable for the nature of the operation. For field operations, this is generally within plus or minus to percent of the projected performance target For significant outputs however, as shown on the 'Summary of output performance' table, this tolerance is plus or minus 5 percent When outside these ranges, a variance comment is provided. Output class operating statement 2013/14: Conservation with the community (Engagement) Actual Budget Revised Actual budget 30/06/13 30/06/14 30/06/14 30/06/14 $000 $000 $000 $000 Revenue Crown 20,474 20.322 24.415 24,415 Other 532 1,085 1,085 660 Total revenue 21,006 21,407 25,500 25,075 Expenses 21,222 21,407 25,500 25 224 Surplus/(deficit) (216) - - (149) Department of Conservation Annual Report for the year ended 3o June 2014 65 rI • 11 Gannet Beach Adventures talung visitors to the Cape Kidnappers gannet colony. Hastings Photo Rob Swsted / www.naturesprc corn 66 Department of Conservation Annual Report for the year ended 30 June 2014 °qt g s •' tea/y • e' i ^ _ `?+^a_ ! s r f t ,- - 1 t 1 _ _ 60 1 Department of Conservation Annual Report for the year ended 30 June 2014 67 9 Business nannershtes To be able to deliver increased conservation outcomes DOC currently manages national partnerships with across New Zealand DOC needs to engage with eight significant New Zealand corporations Air New others and work in partnership with communities The Zealand, Bank of New Zealand, Crombie Lockwood, commercial sector is a vital and leading part of the wider Dulux New Zealand, Genesis Energy, Fonterra, Mitre to community. DOC has been focusing on changing how and New Zealand Aluminium. Smelters. While revenue this sector thinks about and interacts with conservation is an important measure of success from our business We are continuing to work and deepen relationships with partnerships, their true value is reflected in three other our current partners and to seek out new partnerships by. important areas. • Developing productive business partnerships • Reach All of our partners have the ability to reach and • Increasing business opportunities on public influence audiences that have previously been beyond conservation land the resources of the Department. This represents a strong opportunity to engage others in conservation. • Increasing the return (benefit) to conservation from key DOC products and services • Recreation Support from partners like Air New Zealand in promoting recreation activities on public How people relate to conservation already and the image conservation land means more people will benefit from DOC has within society (the'DOC brand) are critical being active and, hopefully, more people will take an factors to DOC's successful engagement of the business active conservation. sector in conservation endeavours DOC's brand strength interest in has shown a positive upward trend with the public since • Restoration All partners are providing resources to 2008 (BrandCapital International 2014) and DOC will deliver more conservation gains on the ground maintain and build on this strength. The following examples of DOC partnerships show the progress that has been achieved to increase conservation Increase in engagement of the • The Living Water Programme* is a joint project commercial sector in conservation between DOC and Fonterra working with local partnerships communities, dairy farmers, iwi and other stakeholders catchments The Through developing meaningful business partnerships to improve sensitive water with New Zealand organisations, DOC not only increases programme's vision is 'A sustainable daisy industry is the investment in conservation, it also creates the part of healthy, functioning ecosystems that together opportunity to work alongside large corporates and enrich the lives of all New Zealanders' In all five communicate the conservation story, transforming how catchment areas, start-up projects have been initiated they think about and interact with conservation. Thus, after engagement with key stakeholders. a focus for the Department has been to work with its • Pure Advantage (a not-for-profit organisation current national partners to deepen the relationships promoting green business growth) has identified and connection they have with conservation. We have New Zealand's btodiversity advantage's as one of seen commitments by partners continued and, in some seven areas that can be built on to achieve sustainable cases, increased. A good example of this is the additional economic growth. Fonterra and DOC have teamed up commitment by Air New Zealand of $1.95 million over a to act as the corporate leaders, developing a strategy 5-year period for marine protection. to engage the business sector in ways that create • Further information on the DOC-Fonterra waterways protection partnership is available at www fonterra com/nz/en/sustainabiltry.platform/supporting.our•communities/new•zealand/new.zealand t Further information on Pure Advantage is available at wwwpureadvantage org/ourcampaign. 68 Department of Conservation Annual Report for the year ended 30 June 2014 0 0 Business partiers.^.ups six chicks successfully hatched this season. As the Reaching ojt to event sponsors for the day, Real Journeys staff worked alongside Kakapo Recovery partners to pull together a hugely successful event that exceeded expectations in terms of public turnout, despite the poor weather 10, 500 (1070 people came through the doors, including seven schools with over 260 children, in 5 hours) As a E company with guiding principles of conservation and aauy mlers through the _)CC-;ontena's hospitality, whose aim is to share the natural heritage partners;, I- Living Water programme and astounding beauty of New Zealand with visitors, Real Journeys was an ideal partner to help develop and host such an experience. Change in the level of investment from the commercial sector in conservation DOC enables commercial operations on public conservation lands and waters through the authority of permissions. A diverse range of commercial businesses is involved. This includes agriculture (particularly grazing), electricity generation and transmissions, telecommunications, transmission towers, wild animal relevance and amplify the protection and enhancement recovery, filming and tourism. The Department has of biodiversity. Two workshops have been hosted by focused significant effort on improving the way that Pure Advantage with businesses such as Fonterra, Air permissions are processed. New Zealand, Mitre 10, Crombie Lockwood, Sandford Tourism is one of the most important sectors operating Kiwi Rail attending, along with Landcare Fisheries and on public conservation lands, taking advantage of the Research, the Sustainable Business Council and Forest spectacular landscapes and treasured natural attractions and Bird. A third workshop is planned to present found there International visitors tell us that New options to the Pure Advantage Trustees. Zealand's natural environment is front and centre for • Kakapo Recovery partners DOC, New Zealand them when they are deciding where to go on holiday activities Aluminium Smelters and Forest and Bird joined forces (Tourism NZ 2014) Tourist industry-related contribute at least half of all of DOC's permissions with DOC concessionaire Real Journeys to bung three revenue (see note 1, page 124). kakapo chicks to Arrowtown during the year to offer the public a once-m-a-ltfetune viewing of three of the Table 9: Department of Conservation concession and partnership revenue, 2013/14. 2011/12 2012/13 2013/14 Actual (benchmark) Actual Actual Change Revenue received ($000) ($000) ($000) (%) Concessions , leases and licenses (Crown) 13,798 13 360 13 ,777 3.1 Partnership 3,293 5,238 6 .473 21 3 Department of Conservation Annual Report for the year ended 30 June 2014 69 0 0 Business parnerships Table 10: Revenue from key DOC products and services. 2011/12 2012/13 2013/14 Actual (baseline) Actual Actual Change Revenue received ($000) ($000) ($000) (%) Backcountry huts 1,525 1,588 1,606 1 1 Conservation campsites 3,196 4,222 4,738 12.2 Great Walks 4 240 4 806 5,293 10 1 Visitor centre network-gross retail 2,114 2052 2,213 78 Increasing the return to conservation COC s core image descriptions ale wi,h n the ,op from key DOC products and service DOC is continuing to focus on increasing the use of its visitor facilities (visitor centres, huts, campsites and the nine Great Walks). These facilities have been marketed to new customers, with the aim of increasing the number of people visiting public conservation lands and connecting people to conservation (see table 10). of New Zealand Drdr dv Results over the past 2 years show success in marketing New Zealand's Great Walks and DOC campsites, and encouraging people to get out and expenence these places The benefit is increased revenue from the sales of these products, which is then invested back into conservation. DOC seeks to collaborate with partners in marketing, uttltsmg their channels to reach new audiences This is highlighted through the Air New Zealand partnership, which promotes the Great Walks through a coordinated multi-media programme including in-flight material and digital marketing The multi-use campsite pass distributed through rental vehicle companies continues to be popular. Six companies are involved in promoting and selling the pass and several more are interested. This approach improves DOC's reach in marketing its campsites and potentially reduces the incidence of illegal freedom camping. 70 Department of Conservation Annual Report for the year ended 30 June 2014 Busi n ess partnersiips DOC has also invested in developing three other new ways, which will hopefully attract more participation. products (Manaaki Trails, Coastal Gems and Hut Breaks). These products provide commercial operators with new Recreation opportunities have been packaged in new experiences on which to build their businesses Manaaki Trails ,= Coastal Gems , . I IMAIMMM to Manaaki Trails is a set of 2 e Coastal Gems is an tgM NOR four, 2- to 4-day fully guided Hosted dwcmery of the outdoors extension of the successful walks operated by existing partnership with Air New Zealand. Our collective aim concessionaires that are being promoted by DOC is to get more people experiencing marine reserve Underpinned by the value of manaakitanga (giving destinations. DOC is working with local hapu, hospitality), these walks share New Zealand's unique tourism operators and regional tourism organisations outdoor environment while providing some home to develop and promote compelling reasons for comforts They offer a great option for visitors or less- local people to visit and experience New Zealand's experienced walkers (www doc govt nz/manaakitrails). marine environments, and to grow as advocates for conservation (www.doc govt nz/coastalgems) Department of Conservation A nnual Report for the year ended 30 June 2014 71 • • Organisational capability Overall status The Department of Conservation operating and The investment approach (as reflected by the portfolios) governance model is shown in figure 12. This reflects the is developed and pnontised by the Intermediate ongoing cycle of planning, delivery and review required Outcome stream leads in collaboration with the to sustain and improve organisational performance. wider business (as demonstrated by the matrix). The stream leads independently and collectively draw The Director-General, with the support of the Senior on and build best practice, and collaborate to ensure Leadership Team (SLT), authonses an enterprise-wide the delivery of the right things at the right time The strategy and the portfolios that deliver on DOC's Outcomes Management Team then consolidates and outcomes and enhance the growth of conservation. In further pnontises these portfolios into a whole-of-DOC doing so, SLT takes advice from the Risk and Assurance investment approach (that enables the strategy) This Committee and Finance Committee. The main elements step ensures that the Department is delivering agreed of the strategy are set out in the Four-year Plan. Advice ^s`dr1u-, r . Support and advice Senior Leadership Team (SLT) Deputy Director-General (DDG) Figure 12: Department of Conservation operating structure 72 Department of Conservation Annual Report for the year ended 30 June 2014 - -0 - __ - ______* Permanent Temporary 2000 1500 w 1000 m E z 500 0 2009 2010 2011 2012 2013 2014 Figure 13 Full-time equivalent (FIE) employees as at 30 June. outputs, continuously learning and improving, as well as current and ongoing success DOC has several areas of living within its means. focus all aligned with strengthening these aspects. These initiatives are outlined below. The execution of the investment approach and portfolios is the responsibility of the functional groups led by the Deputy Director-Generals. These take the form of annual Organisational change business plans and are delivered by means of work plans, On 2 September 2013, the Department implemented a prescriptions and sub-portfolios, which form part of the new organisational structure This significant change DOC Four-year Plan. was designed to transform how we work so that, along Review and reporting is a critical element of the model, with others, we achieve more conservation. to reveal performance against targets and support DOC's new structure has two business groups, which continuous improvement. Investment approaches are each have a clear specialist focus. Our Conservation then adjusted accordingly. Services team is focused on getting great conservation The model requires collaboration and transparency; so that work done on the ground, while our Conservation organisational resource can be effectively managed for the Partnerships team is focused on building strong best conservation outcomes The model also requires role partnerships that grow conservation In addition, the clarity for accountability and decision making. Kahui Kaupapa Atawhai team, which leads DOC's relationships with iwi partners, has been strengthened Overall status: Capability A new regional structure is in place that redefines the current geographical boundaries from 11 Conservancies and workforce to six Partnership regions and six new Service regions The capability and leadership shown by DOC's managers and staff are critical to the organisation's Department of Conservation Annual Report for the year ended 30 June 2014 73 C:ganisatioia capability Overall staffing numbers have reduced over the past 5 strategy and structure reflects the new direction. Such a years Some roles in the new structure are still being filled. major change is complex and will take time and effort to DOC continues to have a high number of temporary implement fully positions to cover for seasonal work As at 30 June 2014, DOC employed 1628 permanent full-time equivalent staff Developing the capability of people and 324 temporary full-time equivalent staff across and outside DOC The effort to make the new direction and structure effective has begun In March 2014, just six months after New capabilities-skills, knowledge, specialist expertise implementation of the new structure and operating and behaviours-are necessary to realise the goals and model, a series of organisation-wide workshops, led by intent of DOC's direction and new operating model. the Senior Leadership Team, was initiated to understand Deepening our understanding of the ways m which New how employees were experiencing working at DOC Zealanders identify with nature-how their interactions, Commentary was analysed and themed to inform a decision making, and other behavioural choices are leader-led response to the most urgent issues, challenges influenced by nature and their communities-is a crucial and opportunities highlighted. step in increasing the conservation effort. Many initiatives are now under way to address the We continue to build and reinforce capability. A recent issues and challenges raised by staff Planning has also focus has been on the business planning system, started to address longer term issues and maximise including standardising and simplifying financial and potential opportunities, that will, in time, contribute to output planning and reporting procedures Changes across and beyond the rebuilding of a connection culture made this year need to be assessed and procedures Department. the simplified where possible The Senior Leadership Team led a staff culture survey A variety of methods is being used to build capability, of 200 staff in February 2014 entitled Working at DOC' including online learning modules, mobile'apps', This formed the basis of key management interventions YouTube videos, internal and public face-to-face courses to improve employee engagement. Given the success of and coaching. This ensures we can meet the demands this, it is likely to be repeated in 20 15 and needs of our staff as well as partners, iwi, volunteers We have been working hard through this past year to and other agencies involved m conservation work implement the new structure internally, and ensure our 2014 training achievements by participants ® People Matter m Professional Leadership Development Specialist O Programme Leadership Programme O Aspiring Leaders Programme Participants from DOC Participants from other NRS agencies 74 Department of Conservation Annual Report for the year ended 30 June 2014 0 0 Orgarmsattona: capability So that we can report on the internal capability and A number of key leadership tools are being used to competency status of our staff, we have implemented a support a more participative and collaborative culture. learning management system (DOCLeam) that went Two of these, participant team process and task live in early 2014. DOCLearn provides managers with assignment, provide a backbone to support positive improved reporting on current capability skills sets team functioning and build trust between leaders and across teams, both regionally and nationally. Managers team members to ensure that tasks will be completed on can deploy staff with a particular capability skill set and time and to the required standard. Other complimentary competency level for specific projects. DOC is working leadership tools will be introduced over time. collaboration with the Ministry for the Environment to in Results of the investment made in leadership management system platform, as part share the learning development over the past few years are starting to show initiative of a wider NRS as several internal candidates have been promoted into For other systems and process support, training has been management roles An increase in the diversity of staff delivered for the following projects Work Manager (new (women, Maon and Pacific peoples) in leadership roles software for mobile devices used by rangers, a NaPALIS has also occurred. (National Planning and Land Information System) DOC recognises that effective leadership is central to introductory course for rangers, managers and specialist its performance and success A significant challenge roles, a Windows 2007 upgrade at 61 office locations, and opportunity for the Department in the coming years and track, huts and structures ongoing inspections and will be to support and enable its leaders to dnve the audits completed for inspectors and works officers achievement of results through others In the last period, we selected a nationwide panel of Leadership development coaching providers to help support and develop our Successful implementation of DOC's new strategy leaders in their roles In addition, several leaders have and structure relies on the ability of leaders to manage undergone 36o Feedback for development purposes. change effectively Success in increasing conservation We are continuing to design and deliver leadership in partnership with others will also require DOC to development programmes in collaboration with the continually improve its responsiveness to external NRS, to ensure all leaders are exposed to critical tools, demand. To be effective in responding to change, robust models and resources that support them to be effective internal and external relationships are needed. This in their roles. We have been expanding the offer of requires people to willingly exercise their discretion tailored leadership development interventions to target when making judgements. the unique strengths and needs of individual leaders and help them focus on the areas that will make the most significant difference to their performance Leadeiship tiers 2014 by gender Female Male Tier 2 2 Tier 3 27 60 Tier 4 120 Department of Conservation Annual Report for the year ended 3o June 2014 75 0------0 Organisation-- capability Table 11: Equal employment opportunity target group statistics, at June 2014 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 (%) (%) (%) (%) (%) (%) Trend* Women 365 376 373 362 366 394 Won 103 107 11 3 '14 101 105 Pacific peoples 03 04 04 04 04 04 Peoo:e w,th d;sabd,;,es 33 32 29 26 30 25 0 ' A trend in growth or reduction 0 is signalled where 2 percent or more change occurs between years, otherwise the statistic is considered stable Equal employment opportunities Over the past year DOC has continued to develop innovative tools to support the maintenance of our Increasing diversity will help the Department's workforce natural and historic hentage and to increase New reflect New Zealand's current and future demographic Zealanders' awareness of, information about and profile Table ii shows the statistics for several groups engagement in conservation and recreation activities that have been a target within the public sector for These include the development of recognising employment aspirations. • DOC Maps, which is an online mapping application accessible to all that provides a map interface and option Improving effectiveness of to display huts, campgrounds, tracks, hunting areas, organisational systems historic sites, visitor centres and so on and that links to relevant websites for bookings or further information By continuing to adopt a shared service and centralised the response to the great functional leadership, DOC is seeking to drive efficiency • A new application supporting and deliver standardised results The Conservation white butterfly incursion in Nelson Services Planning Team now coordinates planning for the • A Record of Fire application in support of rural fire bulk of the delivery activity in ecosystem management, fighting species protection, historic site management and • A whto/blue duck monitoring and pest trap recreation facilities Working closely with the delivery management mobile application in partnership with staff, standard whole-of-hfe prescription approaches are Genesis Energy increasingly being adopted, and national priorities are being applied. This team also provides a shared delivery • A marine mammal database to capture Maui and service through works officers, inspectors and the bto- Hector's dolphin sightings monitoring team. • A new bird banding tool to support observations across The Property and Fleet team also operates as a shared New Zealand. service, now providing central control over budget to In collaboration with Google Inc, DOC also facilitated manage the significant offices, visitor centres, other the capture of Street View imagery for the Great Walks, buildings and vehicle portfolios. Greater visibility of as well as the incorporation of recreational data into the the ownership and management decisions being made base maps of Google maps and Here coin, which feed should contribute to efficiency outcomes in acquisition into widely used international base maps. and maintenance costs, and in doing so contribute to all- of-government aims. DOC hosted several networking events for conservation geographic information system (GIS) users, and 76 Department of Conservanon Annual Report for the year ended 30 June 2014 0 0 Organisational capability arranged New Zealand's largest GIS Day event for 500 DOC has been actively involved in many all-of- schoolchildren who came into National Office to learn government initiatives including cloud services, about GIS, Global Positioning System, satellite imagery Telecommunications as a Service (TaaS), Result 10 and how technology supports conservation information (with the Digital Services Council), NRS Information management. In collaboration with Te Kahui Manu Directorate and Geospatial Senior Officials Group Hokai I the Maon GIS Association, DOC supported Over the past year, a strong focus has also been placed on the PLACE 2013 Maon GIS conference with over 200 DOC's organisational capability, including establishment attending In partnership with Te Kahui Manu Hokar and of the Business Analysis Centre of Excellence to ensure the Google Earth Outreach team, DOC staff supported a common approach and analysis principles for new a Maon mapping workshop in Auckland with over 60 initiatives and the establishment of the Biodiversity attending DOC staff also presented at a variety of GIS Information Oversight Group. DOC has also been user conferences, sharing knowledge and demonstrating developing a common IT infrastructure and successfully lessons learnt with other NRS agencies and GIS users implemented innovative web tools to manage services, operational activities, recruitment and financial reporting Increased use of collaborative tools such as video Skype, GotoMeeting and the DOC Wiki DGG v!a- :I-.e most attractive employer conferencing, in he public. sector across the Department, the sector and stakeholders, and upgrades to operating systems (Windows 7), geospatial software, hardware and servers have occurred. Safety and wellbeing During the year, DOC began a safety culture and leadership programme to shift the focus away from a compliance-driven culture to one of ongoing commitment to safety. DOC has developed an aspirational vision of 'Injury Free and Safe Home Every Day', where people working for DOC can expect to arrive home safe at the end of every working day and where it is unacceptable to believe that getting hurt is an inherent part of working for DOC In the past 6 months of the 3rd financial year, the nearly 160 managers (plus directors and deputy director-generals) attended eight successful safety culture and leadership workshops More are planned for the new financial year Other significant changes have been made, particularly to safety planning, through development of a job safety analysis and toolbox talk system to ensure increased engagement of people'on the ground'. The focus on reducing risk m high hazardous work m the Department has also increased. A new workplace alcohol and drug policy is being implemented and an organisation-wide wellbeing programme is being scoped for delivery m the next 6 to 12 months. Department of Conservation Annual Report for the year ended 30 June 2014 77 Organisational capability Injury rates last 6 months of the financial year. Four serious harm The injury frequency rates (number of injuries per injuries were recorded in the 12 months to 30 June 2014. worked) shown million hours are in figure 14 The total DOC manages its own Accident Compensation Claims recordable injury frequency rate (that is, injuries resulting and a small drop in claim numbers (3 percent) occurred in medical treatment, lost time and serious harm) for over the 12 months to 30 June 2014 It is encouraging the 12 was months to 30 June 2014 62.9, compared with that over the last six months of the year the number of 67 2 in 2013 (this is rolling average). a 12-month Of note, claims dropped significantly for each month compared however, is the reduction in rates that occurred over the with last year (a 25 percent decrease) 120 100 Y d j 80 total recordable injuries CU o frequency rate 0 60 first-aid injuries c r frequency rate a c 40 ^ o m =- 20 0 Jun Oct Feb Jun Oc, Feb Jun Oct Feb Jun Oct Feb Jun 2010 2010 2011 201' 2011 2012 2012 2012 2013 2013 2013 2014 2014 Figure 14 Department of Conservation injury frequency rates (per million hours worked). (Note. total recordable injuries does not include first-aid-only injuries.) 78 Department of Conservation Annual Report for the year ended 3o June 2014 0 0 Policy advice, ministerial services, management planning, servicing statutory and ministerial bodies Policy advice Statutory and ministerially appointed DOC contributes to government priorities and the bodies intermediate outcomes through effective policy advice The New Zealand Conservation Authority (NZCA) on major initiatives This includes policy advice and and the regional conservation boards are independent practical and scientific expertise to whole-of-government statutory bodies established under the Conservation Act policy processes for natural resources, particularly those 1987. relating to freshwater, climate change, bioprospectmg, biodiversity, minerals and petroleum, biosecunty, and The NZCA's role is to advise the Minister of aquaculture. These contributions are often made within Conservation and the Director-General of Conservation It is the context of the NRS network on issues of national importance for conservation. also responsible for approving the General Policy for DOC provides ongoing advice to the Minister of National Parks, conservation management strategies Conservation to support the Minister's coastal (CMSs) and national park management plans, which set responsibilities under the Resource Management Act objectives for DOC's management of public conservation 1991 and the Marine and Coastal Area (Takutai Moana) areas Members are appointed for a 3-year term and may Act 2011 Advice is provided on proposals for amending be re-appointed. The current term finished on 30 June legislation and regulations 2014, and eight members were reappointed and five new In support of the Government's commitment to members were appointed to the Authority. achieving just and durable settlements of all historical There are 14 conservation boards, each with a defined Treaty of Waitangi claims by 2014, DOC contributes geographical area and up to 12 members The boards to Treaty of Waitangi settlement negotiations. In are involved in conservation planning, policy and September 2014 the Te Urewera legislation will create management advice The Minister undertook a review a new ownership and governance regime for a (former) of conservation boards in light of the significant national park It creates Te Urewera as an entity with changes in the conservancy boundaries and the new its intrinsic values at the heart of the new regime. partnerships model within the Department. The review Ngai Tahoe's profound relationship with Te Urewera revealed a refresh of the systems that support the boards is elevated and it is also to be a place for public use was required, which would focus on the relationships, and enjoyment, for recreation, learning, and spiritual processes and operations of the boards Central to it reflection and as an inspiration for all. DOC and Ngaaz would be a new reporting framework that complemented Tahoe will be working with the new Te Urewera board to the boards' current annual reporting to the NZCA. This manage the area. will provide a greater focus for boards in their operations while maintaining their independence. Appointments Ministerial services were made to all boards, following last year's deferral for the review. Government Support focuses on providing effective support to the Minister of Conservation. This includes DOC also provides services to two ministerial bodies writing submissions, drafting replies to ministerial the independent comrruttees of Nga Whenua Rahui correspondence and parliamentary questions, and and the Nature Heritage Fund. The goal of the Nga responding to mmistenal requests for information. The Whenua Rahui Fund is to provide incentives for Government Support Unit operates from the National voluntary protection of indigenous ecosystems on Maon- Office and the Ministers Office owned land that represent a range of natural diversity originally present in New Zealand. The committee also allocates funds to increase tangata whenua participation Department of Conservation Annual Report for the year ended 30 June 2014 79 0 0 Po :cv aJ^rce m.r.sreria- s-_.... , rnaragerrent p.anrir.g sen•.cv-g stat.c;cr• and -nin;gter-a' oc s, a-d cost-eflec-i e .ess in managing biodiversity in ways consistent with finished so that, at the end of the reporting penod, they matauranga Maon (customary knowledge) The Nature were ready to be referred to the conservation boards for Heritage Fund's role is to protect indigenous ecosystems their consideration. that represent the full range of natural diversity originally A partial review of the Westland National Park present in New Zealand it seeks to do this by providing Management Plan relating to visitor access to the Franz incentives for voluntary conservation Josef and Fox Glaciers was completed, and NZCA approval as gained in April 2014. Management planning Preliminary work on drafting a conservation Part of the context in which DOC operates is a statutory management plan for the Whinnaki Conservation planning framework required by the Conservation Act Park, in accordance with the Ngati Whare Treaty 1987 and the National Parks Act 1980. A focus is the Claims Settlement Act 2012, was undertaken in revision of CMSs, which have reached the end of their consultation with Te Runanga o Ngati Whare intended to-year life. Public consultation is a critical part These strategies and plans provide guidance to DOC in of the process, and final approval of a CMS rests with the its management of public conservation lands and waters. NZCA The first three CMSs to be revised were referred first to Outputs that contribute to this output the relevant conservation board and then to the NZCA during the reporting period These were Northland, class Auckland and Waikato. The second three, Canterbury, Policy outputs contribute to all five intermediate Otago and Southland, completed the public submissions outcomes as set out in Appendix 2 and are reported on in and hearings stages, and revisions to the proposals were the statement of service performance below. 80 Department of Conservation Annual Report for the year ended 30 June 2014 Policy advice, ministerial services managemc -:r plsnnrnc, servicrnc statutory and rnirateria: boci=_s and cc:st-efe:tiveness Statement of service performance 2013/14: Policy advice and services Performance measures and targets * 2013/14 National commentary Policy advice The satisfaction of the Minister of Conservation with the policy Minister satisfaction score 68 percent advice service, as per common satisfaction survey - target at (the median for 14 Government departments is 68 percent) least 80 percent Technical qua,rty of policy advice papers assessed by a survey Technical quality score 62 percent and robustness assessment the median for 14 Government departments is 73 percent) The total cost per hour of producing outputs - target at most Total cost pe' output hour $109 76 $95 One median for 14 Government departments is $125) Ministerial servicing It is expected the Department wi I send 200 to 3D0 submiss,ons Tne Department sent 276 submiss cis 10 the ii n.ster to the Mnisler It is expected that the Departmem will receive 60 to 70 The Department received 73 rnrn stenal Official Informat,on Act m nisterial Official Information Act requests w to 100 percent requests A,I met the Ministers deadline meeting the ministerial deadline It s expected the Department will receive 150 to 200 The Department received 421 Parliamentary Questions All met Parliamentary Questions with 100 percent meeting the the ministeria deadline. ministerial deadline Output class operating statement 2013/14: Policy advice and services Actual Budget Revised Actual budget 30/06/13 30/06/14 30/06/14 30/06/14 $000 $000 $000 $000 Revenue Crown 5 021 5.632 6.132 6,132 Other 537 566 566 189 Total revenue 5,558 6, 198 6 ,698 6,321 Expenses 3,818 6,198 6,698 5.135 Surplus 1,740 - - 1,186 Department of Conservation Annual Report for the year ended 30 June 2014 81 Asset management and profile In terms of government departments, DOC manages $6 billion in capital assets and is classified as'Tier 1- VI gat land des DOC rna^age9 Capital Intensive'. Over go percent of these are Crown- owned assets ()redominately public conservation land), v and 9 percent are DOC-owned assets (predominately .at•. visitor assets, such as tracks, huts and structures) Strong capital asset management is imperative to DOC's long-term success . This ensures best value for money from the assets needed to deliver the Government's .4' conservation services Asset management capability DOC continues to strengthen its asset management as part of the Government's Capital Asset Management initiative. A'first generation' asset management plan (AMP) for visitor and historic assets has been finalised. By its nature this first version is at a relatively low level of maturity and will be updated over future years as practice and knowledge improves. The AMP provides a vital link between the work delivered on the ground and the strategy, financial resources and life-cycle approaches required to optimise asset management for this asset group. Work is also under way on AMPs for other business-cntical assets Public Conservation Land DOC and area by elevation Figure 15. Public conservation land administered by DOC. >1300m such as fencing, information and communications technology, fleet, and property. 400- 1300 m Having AMPs in place makes good business sense and provides the necessary tools to enhance the performance of critical assets 0-400m Land assets 0 5 10 15 20 DOC has responsibility for managing about 30 percent Million hectares (mHa) of New Zealand's land surface (see figure 15) The profile Public Conservation Land New Zealand total of that land is more mountainous than lands elsewhere in New Zealand and reflects the difficulty of developing Figure 16 Comparison of elevation above sea level for lands at higher altitudes for agriculture (see figure 16) public conservation land and all New Zealand. Historically this provided the opportunity to establish 82 Department of Conservation Annual Report for the year ended 3o June 2014 Table 12: Department of Conservation asset profile 2013/14 (Crown and departmental assets combined) Carrying Capital amount Depreciation expenditure' Asset group Asset class ($m) ($m) ($m) Information and Computer software 78 26 39 communications technology Fleet Vessels 31 05 05 'Joto• uehide5 12,1 22 1 5 Plant and equipment 87 2 7 1 6 Property Furniture and fitt,ngs 58 1 3 06 3,u,aings 90 1 2 7 02 lnfras-ucttre assets 32 9 09 00 Visitor and historic assets V,t for and nis•onic asses 369 3 15 7 23 6 Land , and 5 432 8 - - Fencing ^-enung 32 4 5 1 0 7 Excludes assets under construction t Excludes transfers between departments protection for the land that remained. It also reflects the Visitor assets challenges the nation now faces to protect ecosystems in Carrying amount their natural state at the lower altitudes. Most of the carrying amount (cost/valuation less accumulated depreciation) of visitor assets is held in Performance of physical assets long-lived (25 to goo years) assets such as land formation (for example, benching of tracks, forming roads, creating The standard indicators for the intermediate outcomes flat picnic areas and campsites), structures and buildings provide measures for the performance of physical (figure 17) assets-see the'Natural hentage' section, which relates to the public conservation land asset group, and'Recreation' Depreciation section, which relates to the visitor assets group. The Department budgets for depreciation expense to accumulate the funds to replace assets at the end of their Asset profile useful life (figure i8) visitor The asset profile information in table 12 is for the year The largest depreciation expense for assets is for which are typically tracks 2013/14 (Crown and departmental assets combined) and the built tracks, the walking is presented by asset group. Similar asset classes are readily accessible to the public As such, they are well grouped together and managed by an asset group owner. used and have a relatively short asset life (up to 15 years). Asset group owners develop an asset management The existing large investment in structures and buildings plan to communicate the planned management of asset form the main remainder of the depreciation expense. replacement and investment to customers Department of Conservation Annual Report for the year ended 30 June 2014 83 0 • Departmenta_ capita, and asset management intenlions Visitor Assets - Carrying arno: rt ($rnt Visitor Assets - Deprecation (Sm) Signs $1.2 8% Land Structures Structures formation $96.9 $4.1 cost 26% 26% $114.4 31% Tracks $5.5 35% $2.9Buildings Buildings $2.9 Signs $86.0 18% 24 23% 2% Tracks 1 $30.8 9% Campgrounds, J Campgrounds. amenity areas, Roads Roads amenity areas, $0.9 car parks $15.7 car parks 6% $18.1 4% $1.0 5% 7% Figure 17. Carrying amount of DOC visitor assets Figure 18: Depreciation of DOC visitor assets as at 30 June 2014. as at 30 June 2014. Managing the depreciation expense flow as a result of the capital investment in replacement and additional assets is DOC's current challenge Investment choices will be informed by the Visitor and Historic Asset Management Plan and the priorities already signalled in the Recreation section. 84 Department of Conservation Annual Report for the year ended 30 June 2014 E • Financial statements Statement of responsibility In terms of section 45C of the Public Finance Act 1989, I am responsible, as Director-General of the Department of Conservation, for the preparation of the Department's financial statements and the judgements made in the process of producing those statements. I have the responsibility for establishing and maintaining, and I have established and maintained, a system of internal control procedures that provide reasonable assurances as to the integrity and reliability of financial reporting In my opinion, these financial statements fairly reflect the financial position and operations of the Department of Conservation for the year ended 30 June 2014. rJ^` fJ Lou Sanson Christeen Mackenzie Director-General Deputy Director-General 12 September 2014 Business Performance/Chief Financial Officer 12 September 2014 Department of Conservation Annual Report for the year ended 30 June 2014 85 0 0 INDEPENDENT AUDITOR'S REPORT TO THE READERS OF THE DEPARTMENT OF CONSERVATION'S FINANCIAL STATEMENTS . AND NON -FINANCIAL PERFORMANCE !NFORMAT!ON AND SCHEDULES OF NON -DEPARTMENTAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2014 The Auditor-General is the auditor of the Department of Conservation (the Department) The Auditor- General has appointed me , Graeme Edwards , using the staff and resources of KPMG, to carry out the audit of the financial statements, and the non-financial performance information and the schedules of non- departmental activities of the Department on her behalf We have audited- the financial statements of the Department on pages 89 to 117, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2014, the statement of comprehensive income, statement of changes in equity, statement of departmental expenses and capital expenditure against appropriations , statement of unappropriated expenditure and capital expenditure and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information, the non-financial performance information of the Department that comprises the statement of service performance on pages 8 to 84 and the report about outcomes on pages 8 to 84, the schedules of non-departmental activities of the Department on pages 118 to 126 that compnse the schedule of assets, schedule of liabilities and revaluation reserves, schedule of commitments and schedule of contingent liabilities and contingent assets as at 30 June 2014, the schedule of expenses, schedule of expenditure and capital expenditure against appropriations, schedule of unappropriated expenditure and capital expenditure, schedule of income and statement of trust monies, for the year ended on that date and the notes to the schedules that include accounting policies and other explanatory information Opinion In our opinion- - the financial statements of the Department on pages 89 to 117. comply with generally accepted accounting practice in New Zealand; and fairly reflect the Department's: - financial position as at 30 June 2014, - financial performance and cash flows for the year ended on that date, - expenses and capital expenditure incurred against each appropriation administered by the Department and each class of outputs included in each output expense appropriation for the year ended 30 June 2014; and - unappropriated expenses and capital expenditure for the year ended 30 June 2014. the non-financial performance information of the Department on pages 8 to 84 and 8 to 84 complies with generally accepted accounting practice in New Zealand, and fairly reflects the Department's service performance and outcomes for the year ended 30 June 2014, including for each class of outputs: 86 Department of Conservation Annual Report for the year ended 30 June 2014 E • qV"M its service performance compared with the forecasts in the statement of forecast service performance at the start of the financial year, and its actual revenue and output expenses compared with the forecasts in the statement of forecast service performance at the start of the financial year. the schedules of non-departmental activities of the Department on pages 118 to 126 fairly reflect, ^ accordance the Treasury Instructions - the assets, liabilities, contingencies, commitments and trust monies as at 30 June 2014 managed by the Department on behalf of the Crown, and - the revenues, expenses, expenditure and capital expenditure against appropriations and unappropriated expenditure and capital expenditure for the year ended on that date managed by the Department on behalf of the Crown. Our audit was completed on 11 September 2014 This is the date at which our opinion is expressed. The basis of our opinion is explained below In addition, we outline the responsibilities of the Director General and our responsibilities, and we explain our independence. Basis of opinion We carried out our audit in accordance with the Auditor-General's Auditing Standards, which incorporate the International Standards on Auditing (New Zealand) Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements, and the non-financial performance information and the schedules of non-departmental activities are free from material misstatement Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers' overall understanding of the financial statements, and the non-financial performance information and the schedules of non-departmental activities If we had found material misstatements that were not corrected, we would have referred to them in our opinion An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements, and the non-financial performance information and the schedules of non-departmental activities The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements, and the non- financial performance information and the schedules of non-departmental activities, whether due to fraud or error In making those risk assessments, we consider internal control relevant to the Department's preparation of the financial statements, and the non-financial performance information and the schedules of non-departmental activities that fairly reflect the matters to which they relate We consider internal control 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 Department's internal control An audit also involves evaluating - the appropriateness of accounting policies used and whether they have been consistently applied; - the reasonableness of the significant accounting estimates and judgements made by the Director General, - the appropriateness of the reported non-financial performance information within the Department's framework for reporting performance; - the adequacy of all disclosures in the financial statements, and the non-financial performance information and the schedules of non-departmental activities; and - the overall presentation of the financial statements, and the non-financial performance information and the schedules of non-departmental activities. Department of Conservation Annual Report for the year ended 30 June 2014 87 • • We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements, and the non-financial performance information and the schedules of non-departmental activities. Also we did not evaluate the security and controls over the electronic publication of the financial statements, and the non-financial performance information and the schedules of non- departmental activities. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion Responsibilities of the Director General The Director General is responsible for preparing: financial statements and non-financial performance information that* - comply with generally accepted accounting practice in New Zealand, - fairly reflect the Department's financial position, financial performance, cash flows, expenses and capital expenditure incurred against each appropriation and its unappropriated expenses and capital expenditure, and - fairly reflect its service performance and outcomes, schedules of non-departmental activities, in accordance with the Treasury Instructions, that fairly reflect those activities managed by the Department on behalf of the Crown. The Director General is also responsible for such internal control as is determined is necessary to enable the preparation of financial statements, and non-financial performance information and schedules of non-departmental activities that are free from material misstatement, whether due to fraud or error. The Director General is also responsible for the publication of the financial statements, and non-financial performance information and schedules of non-departmental activities, whether in printed or electronic form. The Director General ' s responsibilities arise from the Public Finance Act 1989 Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements, and the non- financial performance information and the schedules of non-departmental activities and reporting that opinion to you based on our audit Our responsibility arises from section 15 of the Public Audit Act 2001 and the Public Finance Act 1989. Independence When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board Other than the audit, we have no relationship with or interests in the Department CIL Graeme Edwards KPMG On behalf of the Auditor-General Wellington, New Zealand 88 Department of Conservation Annual Report for the year ended 30 June 2014 0 Departmental financial statements Statement of comprehensive income for the year ended 30 June 2014 30/06/13 30/06/14 30/06/14 30/06/14 30/06/15 Actual Budget' Revised Actual Forecast' Budget* Notes $ 000 $000 $000 $000 $000 Income Revenue Crown 296,534 297,264 305 974 309 374 299,419 Other income 2 39,334 38,132 40,132 37,463 40 132 Total income 335,868 335 , 396 346,106 346,837 339,551 Expenditure Personnel costs 3 1,19 081 14,1899 147,492 1-19,300 145,039 Operating costs 4 92,338 111. 676 119.032 116,246 108,189 Deo•ec,ation, amortisation and impairment 33,755 35 539 34 829 32,770 35,967 expense Cao,tal charge 5 44,918 48 458 49 220 46,049 52,228 Finance costs 154 195 195 426 128 Loss on disposal of propery, plant and equipment 2 278 - 709 388 - Total expenses 322,524 340,767 351,477 344,879 341,551 Net surplus/(deficit) 13,344 (5, 371) (5,371) 1 , 958 (2,000) Gain on property valuations 2 371 - 5,371 14,619 2,000 Total comprehensive income 15, 715 (5, 371) - 16,577 - ' The statement of accounting policies provides explanations of these figures which are unaudited. Refer to Note 1 for an explanation of major variances The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements Department of Conservation A nnual Report for the year ended 30 June 2014 89 0 0 Depanmenta? fnar:_!a1 sta tements Statement of financial position as at 30 June 2014 30/06/13 30/06/14 30/06/14 30/06/14 30/06/15 Actual Budget' Revised Actual Forecast' Budget* Notes $000 $000 $000 $000 $000 Taxpayers' funds General funds 14 457,285 509,886 498,140 456,880 538 042 Property, plant and equipment revaluation reserves 14 118,315 117 143 123 686 134,514 119.143 Total taxpayers ' funds 575,600 627 ,029 621 ,826 591 ,394 657,185 Represented by Current assets Cash 51,807 47 509 46.841 58,011 86,490 Prepayments 1 849 1.252 1,252 1,934 1,252 Inventories 1011 1 063 1 063 1,144 1.063 Trade and other recewab'es 7 7,518 7,071 7,071 8,828 8,303 Non-current assets held for sale 3,371 - - 3,371 - Debtor Crown 8 28,740 26,645 24,813 24,813 20,820 T:ta ::!rent assets 94,296 83 5' 0 81 340 98,- 0' '17.928 Non-current assets Property, plan: and equwprr,ent 9 545,686 579 363 579 363 558281 588,719 Intangib'e assets 10 9 798 18,303 18,303 11,145 16,210 non c ,,r ent uss,,ts .;53,18'- 591 666 ' 9/ C66 369 126 604,929 Total assets 649,780 681,206 678,706 667,527 722,857 Current l iabilities Trade and other payables 13,706 13,550 16 258 18 006 25,899 GST payable 3 659 11,22,1) (1.224) 2,767 (1,348) Employee entitlernen , 11 23,774 15,313 15,308 17 ,568 15.308 Finance leases 596 779 779 658 624 Provisions 12 1,287 779 779 11 855 779 Return of operating surplus 6 6 193 - - 990 - Revenue in advance 82.12 6, 818 6,818 9,443 6,818 Total c..rrent,!ao it es 57,4,i,' 36,015 35 718 6' 287 48 ZWO Non-current liabilities Employee entitlements 13 14,843 17,144 17,144 13,483 17,144 Finance leases 1,392 1,018 1,018 824 448 Provisions 12 498 - - 539 - Total non-current liabilities 16.733 18,162 18,162 14 8-16 17 592 Total liabilities 74,180 54 ,177 56,880 76,133 65,672 Net assets 575,600 627,029 621,826 591,394 657,185 ' The statement of accounting policies provides explanations of these figures which are unaudited. Refer to Note 1 for an explanation of major variances The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements. 90 Department of Conservation Annual Report for the year ended 30 June 2014 • • Departments) rnar cial statements Statement of changes in taxpayers' funds for the year ended 30 June 2014 30/06/13 30/06/14 30/06/14 30/06/14 30/06/15 Actual Budget Revised Actual Forecast* Budget` Note $000 $000 $000 $000 $000 Balance at 1 July 556,714 583 ,674 575,600 575,600 611,818 Total comprehensive income 15,715 (5,371) - 16 577 - Distributions to Crown Asset transfers (484) - - (536) - Cacral repaymen*s (526) - - - - Return of cnerating surolus to the Crown 6 (6,1931 - (990) Contributions from Crown Asset tra-is`ers 374 5,000 - 743 - Cap,'al contributions 10 000 43,726 1-6,226 - 45,367 Balance at 30 June 575,600 627 ,029 621 ,826 591 ,394 657,185 The statement of accounting policies provides explanations of these figures which are unaudited Refer to Note 1 for an explanation of major variances The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements Department of Conservation Annual Report for the year ended 30 June 2014 91 • • Detarrmental financial statements Statement of cash flows for the year ended 30 June 20 14 30/06/13 30/06/14 30/06/14 30/06/14 30/06/15 Actual Budget' Revised Actual Forecast* Budget' Note $000 $000 $000 $000 $000 Cash flows - operating activities Receipts from Crown 300,593 299 359 305 974 313,301 299,419 Receipts from third parties 35,268 37,717 42,062 37,149 42,271 Payments to employees 11'-3,826) 41,349) (151,067) (156,814) (143 789) Payments to suppliers (95,388) (115 059) (118 425) (102,701) (98,966) Payments for capital c'large (44918) (48 458) (49 220) (46,049) (52,228) Net cash flow from operating activities 15 51,729 29,210 29,324 44,886 46,707 Cash flows - investing activities Receipts from sale of property plant and 1,612 - 709 653 5,600 equipment Purchase of property, plant and equipment (39895) (45,500) (70,332) (28,641 ) (53 000) Purchase of intangib,es (4,734) (7,566) (4 700) (3,905) (4,300) Net cash flow from investing activities (43,017) (53,066) (74,323) (31,893) (51,700) Cash flows - financing activities Capital contribut-ons 10,000 43.726 46,226 - 45,367 Finance lease payments (528) (658) - (596) (725) Capital withdrawals (526) - - - - Return of operating surplus to the Crown (9 365) - (6,193) (6,193) - Net cash flow from financing activities (419) 43 .068 40,033 (6,789) 44,642 Net increase/(decrease) in cash 8,293 19,212 (4, 966) 6 ,204 39,649 Opening cash balance 43,514 28,297 51,807 51,807 46,841 Closing cash balance 51,807 47,509 46,841 58 ,011 86,490 ' The statement of accounting policies provides explanations of these figures which are unaudited. The Goods and Services tax (net) component of operating activities has been included under supplier payments and reflects the net GST paid to and received from Inland Revenue The GST components have been presented on a net basis as the gross amounts do not provide meaningful information for financial statement purposes. The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements. 92 Department of Conservation Annual Report for the year ended 30 June 2014 i • Depsrtmen*al finan_ial statements Statement of commitments as at 30 June 2014 30/06/13 30/06/14 Actual Actual $000 $000 Commitments by category Capital commitments Property plant and equipment 11,181 6 646 Intangib'e assets 544 122 Total capital commitments 11,725 6,768 Operating commitments Non-cance'laole accommodat,on leases' 33.480 27,876 Other non cancellable leases ' 3,280 3,212 Total operating commitments 36,760 31,088 Total commitments 48,485 37,856 Commitments by term Less than 1 year 19,495 14 868 1-2 years 7,142 6,889 2-5 years 17,508 13,269 Greater than 5 years 4,340 2 830 Total commitments 48,485 37,856 ' The 2012/13 figure has been restated to reflect the correct duration of the lease on Conservation House, Wellington. Capital commitments Non-cancellable operating lease commitments Capital commitments are the aggregate amount of (accommodation and other) capital expenditure contracted for the acquisition of The Department leases property, plant and equipment in property, plant, equipment and intangible assets that the normal course of its business The ma)onty of these have not been paid or recognised as a liability at the leases are for premises, motor vehicles and computer balance sheet date. hardware and have a non-cancellable leasing period ranging from 3-10 years. The Department's non-cancellable operating leases have varying terms, escalation clauses and renewal rights. There are no restrictions placed on the Department by any of its leasing arrangements. The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements. Department of Conservation Annual Report for the year ended 30 June 2014 93 • Dezarrmenta financial sta'errents Statement of contingent liabilities and contingent assets as at 30 June 2014 30/06/13 30/06/14 Actual Actual $000 $000 Public liability claims 5 258 3,026 Total contingent liabilities 5 ,258 3,026 The public liability claims relate to claims against the Department and are disclosed without prejudice The Department's contingent liabilities are broken down as follows 30/06/13 30/06/14 Maximum Maximum Exposure Exposure $000 $000 Court and Tribunal proceedings and other potential claims. 53 proceedings and potential claims of which 13 are quantifiable The remaining 40 clams cannot be quantified The contingent liability for the 13 quantifiable clams is snown below Costs to clean asbestos and dioxin contamriated land 2 300 1,8'5 Claims for damage caused by events originating from DOC land 943 943 Potential avalanche protection costs 810 - Claims for compensation due to fencing boundaries 454 - Other quantifiable proceedings and potential claims 751 268 Total court and tribunal proceedings and other potential claims 5 ,258 3,026 With regard to some potential claims, it is not possible Act 1989 to agree to indemnities in access agreements to determine potential reimbursements because their over private land. This provides access, for the public circumstances are too remote or unknown There may be and the staff of the Department, to land managed by the other unquantifiable claims or contingent liabilities not Department. Department recognised at this stage by the One new indemnity was granted in 2013/14 for staff conservation land. Indemnities access to The Director-General of Conservation has a delegation Contingent assets from the Minister of Finance under the Public Finance The Department has no contingent assets (2013 ml) The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements. 94 Department of Conservation Annual Report for the year ended 30 June 2014 • • Dep:r,men*al ecar:cial starements Statement of departmental expenses and capital expenditure against appropriations for the year ended 30 June 2014 30/06/13 30/06/14 30/06/14 30/06/14 30/06/15 Actual Budget' Revised Actual Forecast' Budget' $000 $000 $000 $000 $000 Vote Conservation Output expenses Management of natural heritage 154,354 162,847 164,936 162,995 160.303 Management of historic heritage 4,717 5,774 5,565 4,763 5 996 Management of recreationa, opport,inities 137,950 144,650 11-8,564 144,169 144 993 Conservation with the community 21,222 21,407 25,500 25,224 24 346 Pol:cy ads ice and Ministerial sent c'ngT 3.818 6,198 6,698 5,135 - Crown regional pest management strategies 3,160 3 291 3,614 2,927 3,292 cortribut-on Total output expenses 325,221 344,167 354,877 345,213 338,930 Recovery from Canteroury earthquake - - 368 "0 - Total expenditure 325,221 344 , 167 355 ,245 345,323 338,930 Capital expenditure Property plant and equipment 41,023 45,500 48 366 29,765 48.766 Intangible assets 4.734 7,566 4,700 3,905 4,300 Total capital expenditure 45,757 53,066 53 ,066 33,670 53,066 The statement of accounting policies provides explanations of these figures which are unaudited t Includes forecast transfers made in the Supplementary Estimat es under the Public Finance Amendment Act 2013 Reconciliation of appropriations to the statement of comprehensive income for the year ended 30 June 2014 30/06/13 30/06/14 30/06/14 30/06/14 30/06/15 Actual Budget' Revised Actual Forecast' Budget' $000 $000 $000 $000 $000 Total departmental expenses against appropriations 325.221 344,167 355,245 345,323 338,930 Unrealised remeasurements (gains)/losses (2,697) - - (444) - Difference between appropriations for expenses and - (3 ,400) (3.768) - 2,621 forecast expenses Total expenses per statement of comprehensive 322,524 340,767 351,477 344 ,879 341,551 income ' The statement of accounting policies provides explanations of these figures which are unaudited The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements. Department of Conservation Annual Report for the year ended 30 June 2014 95 L • Dezartmental finar-tal sta'ements The unrealised remeasurement gain of $0.444 million • expenses and capital expenditure incurred without has arisen following the valuation of the retirement, long appropriation or other authority, or outside scope of service and sick leave liabilities as at 30 June 2014 appropriation (2013• nil) In the 2014 financial year there were no instances of In the 2014 financial year there were no breaches of projected departmental net asset schedules (2013• nil) • expenses and capital expenditure incurred in excess of appropriation (2013 nil) Statement of trust monies for the year ended 30 June 2014 As at Contributions Distributions Net Interest As at 30/06/13 30/06/14 $000 $000 $000 $000 $000 Conservatio'l Project Trust 1.112 718 (534) 19 1.315 NZ Walkway Trust 10 1 - 11 Nat5ona' Parks Trust 90 60 (30) 121 Bonds/Deposits Trust 7,743 147 (327) 216 7,779 Total 8 ,955 926 (891) 236 9,226 The Department has delegated authority to operate these 2. Bonds and deposits from operators working on public trust accounts under sections 66 and 67 of the Public conservation land, including those contracted by the Finance Act 1989 Department. These are repaid when the operators have been cleared of all obligations. There are two sources of receipts 1. Donations, grants and gifts received for specific purposes under section 33 of the Conservation Act 1987, section 18 of the Walkways Act 1990 or section 78(3) of the Reserves Act 1977, and specific trust money under the National Parks Act 1980. The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements. 96 Department of Conservation Annual Report for the year ended 30 June 2014 Statement of accounting policies Reporting entity the Department is classified as a Tier 1 reporting entity The Department of Conservation (the Department) is a and will be required to apply full Public Benefit Entity government department as defined by section 2 of the Accounting Standards (PAS). These standards are being Public Finance Act 1989 developed by the XRB based on current international Public Sector Accounting Standards The effective In addition, the Department has reported on Crown date for the new standards for public benefit entities activities and the trust monies that it administers is expected to be for reporting periods beginning The primary objective of the Department is to provide on or after 1 July 2014. The Department expects it services to the public rather than making a financial will transition to the new standards in preparing its return. Accordingly, the Department has designated 30 June 2015 financial statements. The Department itself as a public benefit entity for the purposes of New is in the process of assessing the implications of the Zealand equivalents to International Financial Reporting new Accounting Standards Framework at this time Standards (NZ IFRS) Due to the change in the Accounting Standards The financial statements of the Department are for Framework for public benefit entities, it is expected that the year ended 30 June 2014 The financial statements all new NZ IFRS and amendments to existing NZ IFRS were authonsed for issue by the Director-General of the will not be applicable to public benefit entities Therefore, Department on 5 September 2014. the XRB has effectively frozen the financial reporting requirements for public benefit entities until the new Basis of preparation Accounting Standard Framework takes effect on 1 July The financial statements of the Department have been 2014 Accordingly, no disclosure has been made about prepared in accordance with the requirements of the new or amended NZ IFRS that exclude public benefit Public Finance Act 1989, which includes the requirement entities from their scope. to comply with New Zealand generally accepted accounting practices (NZ GAAP) Significant accounting policies The accounting policies set out below have been applied These financial statements have been prepared consistently to all penods presented in these financial in accordance with, and comply with, NZ IFRS as statements. appropriate for public benefit entities The financial statements are presented in New Zealand Budget and forecast figures dollars, and all values are rounded to the nearest The budget and the revised budget figures are thousand dollars (Soon) The functional currency of the those presented in the Supplementary Estimates of Department is New Zealand dollars Appropriations for the Government ofNew Zealand and Supporting Information for the year ending 30 June 2014 The statements have been prepared on a historical cost (the Budget is 2013 Budget Economic and Fiscal Update basis, modified by the revaluation of certain items of [the Estimates Budget BEFU 2013] and the Revised property, plant and equipment. Budget is the Supplementary Estimates Budget 2014). Standards, amendments and interpretations The budget and forecast figures have been prepared in issued that are not yet effective and have not accordance with NZ GAAP, using accounting policies been early adopted that are consistent with those adopted in preparing these The Minister of Commerce has approved a new financial statements Accounting Standards Framework (incorporating a Tier As required by the Public Finance Amendment Act 2013, Strategy) developed by the External Reporting Board forecast information has been included for the following (XRB). Under this Accounting Standards Framework, financial year The aim is to provide the reader with Department of Conservation Annual Report for the year ended 30 June 2014 97 • • Der;arrmenta: fina-.z'al sts -ements further context around the year's result by providing next For the year ended 30 June 2014, indirect costs accounted year's forecast for comparison purposes for 43 percent of the Department's costs (2013.41 percent). The forecast figures are those presented in the Estimates Financial instruments ofAppropriations for the Government ofNew Zealand Financial assets and financial liabilities are initially for the year ending 30 June 2014 (the Forecast is 2014 measured at fair value plus transaction costs. Budget Economic and Fiscal Update [BEFU 2014]) The forecast financial statements were authonsed Cash on hand for issue on 15 May 2014. Cash on hand includes petty cash and the amount in the While the 30 June 2014 results are based on NZ IFRS current account bank balance (Public Benefit Entity) financial reporting standards, Trade and other receivables the forecasts are based on the new Public Benefit Entity at reporting standards that take effect from 1 July 2014. Short-term trade and other receivables are recorded face value, less any provision for impairment. Revenue Impairment of a receivable is established when there is The Department derives revenue through the provision objective evidence that the Department will not be able of outputs to the Crown, for services to third parties, and to collect amounts due according to the original terms of from donations This revenue is recognised when earned the receivable and is reported in the financial period to which it relates The amount of the impairment is the difference between Revenue is measured at the fair value of consideration the asset's carrying amount and the amount expected to received. be received on settlement Overdue receivables that are Revenue Crown renegotiated are reclassified as current (that is, not past due) Revenue earned from the supply of outputs to the Crown is recognised as revenue when earned. Non-current assets held for sale Cost allocation Non-current assets are classified as held for sale if their carrying amount will be recovered principally through The Department has determined the cost of outputs a sale transaction rather than through continuing use using the following cost allocation methodology. Non-current assets held for sale are measured at the Direct costs are those costs directly attributed to an lower of their carrying amount and fair value less costs output Indirect costs are those costs that cannot be to sell. identified, in an economically feasible manner, with a specific output Operating leases An operating lease is a lease that does not transfer Direct costs assigned to outputs substantially all the risks and rewards incidental to Direct costs are charged directly to outputs. Depreciation ownership of an asset Lease payments under an and capital charge are charged on the basis of asset operating lease are recognised as an expense on a utilisation. Personnel costs are charged on the basis of straight-line basis over the lease term. actual time incurred The Department leases vehicles, office premises For the year ended 30 June 2014, direct costs accounted and office equipment. As all the risks and benefits of for 57 percent of the Department's costs (2013.59 percent) ownership are retained by the lessor, these leases are Indirect costs assigned to outputs classified as operating leases and are expensed in the Indirect costs are assigned to outputs based on the period in which the costs are incurred. proportion of direct staff hours for each output. 98 Department of Conservation Annual Report for the year ended 30 June 2014 Depar,-nen: ;l f.;:arcial sta-ements Property, plant and equipment the surplus or deficit Any subsequent increase on Property, plant and equipment consists of land, buildings, revaluation that reverses a previous decrease in value infrastructure, visitor assets, fencing assets, cultural recognised in the surplus or deficit will be recognised assets, vessels, motor vehicles, furniture and fittings and first in the surplus or deficit up to the amount previously other plant and equipment expensed, and then recognised in other comprehensive income Property, plant and equipment is measured at cost or valuation, less accumulated depreciation and Additions impairment losses. Assets under construction are recognised at cost less impairment and are not depreciated. In most instances Revaluations an item of property, plant and equipment is recognised Department's asset portfolio is unique in that it The at its cost. Where an asset is acquired at no cost, or for a number of low value assets that are comprises a high nominal cost, it is recognised at fair value as at the date geographically diverse. In many instances the assets are of acquisition. not able to be measured against a reliable trading market and seldom, if ever, trade in the open market (due to their Disposals nature and/or location) For this reason the depreciated Gains and losses on disposals are determined by replacement cost approach to value is deemed the comparing the disposal proceeds with the carrying appropriate methodology to determine fair value amount of the asset Gains and losses on disposals are included in the surplus or deficit. When a revalued asset The carrying values of revalued assets are assessed is sold, the amount included in the property, plant and annually to ensure that the carrying amount does not equipment revaluation reserve in respect of the disposed differ materially (a threshold of 7 5 percent is used) from asset is transferred to general taxpayer funds. their fair value and are revalued at least every 5 years. If there is a material difference, then the off-cycle asset Depreciation classes are revalued. Additions between valuations are Depreciation is provided on a straight-line basis on all recorded at cost. property, plant and equipment other than land, cultural Asset classes measured at valuation include land, assets and assets under construction, at rates that will write buildings, infrastructure, visitor assets and fencing. Asset off the cost (or valuation) of the assets to their estimated classes, other than land, measured at valuation are done residual values over their useful lives (see table 1.3). so using an indexation model. Community assets The indexation model uses the appropriate capital goods The nation's land and historic buildings managed by the index published by Statistics New Zealand to determine Department are the nation's natural and historic heritage. the movement in asset values over the intervening As these community assets belong to the Crown, their period Where an asset class is revalued, the application valuation is reflected in the'Schedule of assets - Crown of the indexation model and the values produced are as administered by the Department of Conservation'. reviewed and approved by an independent valuer Land Typically this land includes the national, conservation is valued using assessments conducted in accordance and forest parks as well as Crown reserve land. with the Rating Valuation Act 1998. Intangible assets The net revaluation results are charged to other comprehensive income and are accumulated to an Software acquisition and development asset revaluation reserve in equity for that class of Costs that are directly associated with the development asset Where this would result in a debit balance in the of software for internal use by the Department are asset revaluation reserve, this balance is not recognised recognised as an intangible asset. in other comprehensive income but is recognised in Department of Conservation Annual Report for the year ended 30 June 2014 99 Table 13: The useful lives of property, plant and equipment have been estimated as follows. Asset Estimated Useful Life Visitor assets Campsites and amenity areas 10-50 years Sig-is 10 years Tracks 15 years Roads (surface only) 25 yea's Bu !dings/huts 35-65 yeas Structures 25-100 years Other fixed assets Admrus rralive o.nld;ngs 20-40 ;ea" s Plant, field and radio equipment Plant ano I elo equ , pment 0 years Radio equipment 5-10 years l-urn,tjre cornp -j teis other office equipment 5 ?ears Motor vehicles Veh i cles -passenger 4 years - 6 years 8 months w ith a 30 0,6 resdual value Vehicles-util * ,es 5 years - 6 years 8 months with a 30-40% residual value Vessels Engines 10 years Hulls 15 years Infrastructure Indus'nal `ire equipment 45 years Landscaping 44 years Roads 10-100 years Sewerage 64 years Solid waste 38 years Stream control 98 years Water supply 60 years Fences 25-40 years In accordance with NZ IAS 16 Property, plant and equipment, the useful lives of property, plant and equipment are assessed annually to determine whether they are appropriate and the future depreciation charge adjusted accordingly. In some circumstances, and particularly for revalued assets, this may lead to instances where the estimated useful lives vary, but not materially, from the useful lives presented above 100 Department of Conservation Annual Report for the year ended 30 June 2014 De 2srtmen-aI sta-ements Amorttsation Where GST is not recoverable as input tax, then it is Computer software is amortised on a straight line basis recognised as part of the related asset or expense. over a period of 5-7 years Income tax Impairment Government departments are exempt from income tax as Property, plant and equipment and intangible assets public authorities. Accordingly, no charge for income tax that have a finite useful life are reviewed for impairment has been provided for when there is an indicator of impairment. An impairment Donation receipts loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The The Department receives unsolicited donations, gifts and The recoverable amount is the higher of an asset's fair value and grants from individuals, groups companies. receipts dependent their nature. less costs to sell and value in use treatment of these is on • Donations that are received without a specific purpose Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential are recognised as revenue in the period of receipt of the asset are not primarily dependent on the asset's • Donations received for specific purposes, where a ability to generate net cash inflows and where the written agreement specifies the purpose for which Department would, if deprived of the asset, replace its the funds must be used, are matched against related remaining future economic benefits or service potential expenditure when it has been incurred. Where the not incurred, the unspent balance If an asset's carrying amount exceeds its recoverable expenditure has been revenue amount, the asset is impaired and the carrying amount is treated as in advance. is written down to the recoverable amount. For revalued Donations received for specified purposes under assets, the impairment loss is recognised against the section 33 of the Conservation Act 1987, section 18 of revaluation reserve for that class of asset. Where that the New Zealand Walkways Act 1990 or section 78(3) results in a debit balance in the revaluation reserve, the of the Reserves Act 1977 are held in trust accounts balance is recognised in the surplus or deficit. established by sections 66 and 67 of the Public Finance For assets not carved at a revalued amount, the total Act 1989. If the Department incurs expenditure in achieving specific purposes, the funds impairment loss is recognised in the surplus or deficit relation to these are transferred to the Department as revenue when the Statement of cash flows expenditure is incurred. Operating activities include cash received from all Taxpayers' funds revenue sources of the Department and cash payments Crown's made for the supply of goods and services Taxpayers' funds represent the investment in the Department and are measured as the difference Investing activities are those activities relating to the between total assets and total liabilities Taxpayers' funds acquisition and disposal of non-current assets. are disaggregated and classified as general funds and Financing activities comprise capital injections by, or property, plant and equipment revaluation reserves The repayment of capital to, the Crown, as well as finance latter relate to the revaluation of fixed assets to fair value lease principal repayments. Trade and other payables Goods and Services Tax (GST) Short-term trade and other payables are recorded at their All items in the financial statements, including face value. appropriation statements, are stated exclusive of goods and service tax (GST), except for receivables and payables, which are stated on a GST-inclusive basis. Department of Conservation Annual Report for the year ended 30 June 2014 101 D'^armentaa Financial sta'er-ents Employee entitlements Critical accounting estimates and assumptions Short-term employee entitlements In preparing these financial statements, estimates and Employee entitlements that the Department expects to assumptions have been made concerning the future. be settled within 12 months of balance date are measured These estimates and assumptions may differ from the at nominal values based on accrued entitlements at subsequent actual results Estimates and assumptions current rates of pay. are continually evaluated and are based on historical experience and other factors, including expectations of to balance These include salaries and wages accrued up future events that are believed to be reasonable under the date, annual leave earned but not yet taken at balance circumstances. The estimates and assumptions that have service leave entitlements date, retiring and long a significant risk of causing a material adjustment to the leave. expected to be settled within 12 months; and sick carrying amounts of assets and liabilities within the next Long-term employee entitlements financial year are discussed below Employee entitlements that are due to be settled beyond Valuation ofcertain items ofproperty, plant and 12 months after the end of the reporting period in which equipment the employee renders the related service, such as long Note 9 provides detail in respect of the valuation of service leave and retiring leave, are calculated on an property, plant and equipment. actuarial basis The calculations are based on Commitments • Likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that Expenses yet to be incurred on non-cancellable contracts staff will reach the point of entitlement, and contractual that have been entered into on or before balance date are entitlements information. disclosed as commitments to the extent that there are equally unperformed obligations • The present value of the estimated future cash flows Cancellable commitments that have penalty or exit costs Provisions explicit in the agreement on exercising that option to The Department recognises a provision for future cancel are included in the statement of commitments at expenditure of uncertain amount or timing when the lower of the remaining contractual commitment and the value of the penalty or exit cost. • There is a present obligation (either legal or constructive) as a result of a past event. Changes in accounting policy • It is probable that an outflow of future economic There have been no changes in accounting policies since benefits will be required to settle the obligation the date of the last audited financial statements • A reliable estimate can be made of the amount of the All policies have been applied on a basis consistent with obligation. Provisions are not recognised for future the previous year. operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. 102 Department of Conservation Annual Report for the year ended 30 June 2014 Notes to the financial statements Note 1: Major budget variations Significant variances between Actual and Revised Budget Statement ofcomprehensive income Actual expenses for the year were $6 6 million less than the Revised Budget mainly due to reduced capital expenditure and unplanned delays in capitalising assets that result in reductions to depreciation and capital charge Statement of financial positron Non-current assets were $28.2 million less than the Revised Budget due to lower than planned levels of capital expenditure of $19 4 million and unplanned delays in capitalising assets following the implementation of asset management plans for visitor asset and property asset groups Taxpayers' funds were $30.4 million lower than Revised Budget mainly due to the reduced capital expenditure that has been offset by the deferral of a capital contribution from the Crown of $46 2 million to 2015/16, 2016/17 and 2017/18 Note 2: Other income 30/06/13 30/06/14 Actual Actual $000 $000 Recreational charges 12,650 13,792 Leases and rents 733 405 Retail sales 2 ,203 2.423 Resource sales 595 499 Donations and sponsorships` 9 714 7 865 Permissions cost recoveries 2,265 3,134 Administration cost recoveries 10,958 9,343 Other 216 2 Total other income 39,334 37,463 The 2012/13 figure includes an amount of $3.371 million for the Waitangi Endowment Forest. Department of Conservation A nnual Report for the year ended 30 June 2014 103 C7 De,arrmenta; Fnanc'al sta'ements Note 3: Personnel costs 30/06/13 30/06/14 Actual Actual $000 $000 Salares and wages 132,857 135.578 Termination entitlements 7,105 1.061 Annual, long service and retiring leave prov,sioning (1,119) (677) Superannuation contributions 3,914 4 406 Recruitment 234 547 Uniforms 433 301 ACC Partnership Programme 824 888 Other 4,833 7,196 Total personnel costs 149,081 149,300 Note 4: Operating costs 30/06/13 30/06/14 Actual Actual $000 $000 Professional fees 11,352 14,282 Contractors 29,25' 41,762 Fees paid to auditors Fees for financial statement audit 271 252 Fees for assurance services - Grants 1,036 2,819 Communications and computer expenses 7,244 7,873 Travel 6,147 7,480 Motor vehicle and vessel expenses 4,799 4,907 Accommodation 3,812 3,166 Office supplies 1.808 1,835 Field supplies 11.702 15,031 Lease expenses 10.048 10,872 Punting 1,246 1.241 Other 3,622 4,706 Total operating costs 92,338 116,246 Note 5: Capital charge The Department pays a capital charge to the Crown twice yearly on the balance of taxpayers' funds, including revaluation reserve, as at i July and 1 January. The capital charge rate for the year ended 30 June 2014 was 8 0 percent (201,3 8.o percent) 104 Department of Conservation A nnua l Report for the year ended 30 June 2014 Depsr,menral .-_ ancial starements Note 6: Return of operating surplus to the Crown 30/06/13 30/06/14 Actual Actual $000 $000 Net surplus for the year 13,344 1 958 Less Donated assets (4,454) - Othe' expenses - (524) Remeasurement gains on retirement. long service and sick leave provision (2,697) (444) Total return of operating surplus 6,193 990 Other expenses relate to expenses of $0.110 million on the Canterbury earthquake recovery less insurance proceeds of $o 634 million. The repayment of surplus is required to be paid by 31 October each year Note 7: Trade and other receivables 30/06/13 30/06/14 Actual Actual $000 $000 Trade receivables 6.558 6.732 Less provision for impairment (399) (186) Net trade receivables 6,159 6,546 Accrued income and advances 1,359 2,282 Total trade and other receivables 7,518 8,828 Movements in the provision for impairment Balance at 1 July (653) (399) Decrease in provision 89 213 Receivables written off during the year 165 - Balance at 30 June (399) (186) Note 8: Debtor Crown Cabinet agreed in 2002 to a 2o-year funding stream for visitor assets Initially not all depreciation was funded in cash, which resulted in the debtor Crown balance accumulating. The balance is scheduled to be progressively reduced until 2021/22 when it will be cleared to zero It has reduced to $24.8 million as at 30 June 2014 in accordance with the original Cabinet decision (201.3 $28 7 million). Department of Conservation Annual Report for the year ended 30 June 2014 105 Note 9: Property, plant and equipment Land Buildings Plant and Infrastructure Fencing Vessels Motor Furniture and Visitor and Total equipment vehicles fittings cultural assets $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Cost or valuation Balance at 1 July 2012 14,384 112,583 31,851 31,000 81 579 8.424 23,483 12,106 696,523 1,041,933 Additions - 647 722 1 407 1,840 476 4.307 2,260 29.364 41,023 Revaluation movement - - - 2,191 2 520 (78) - - 6,571 11,204 Disposals - (175) (217) - (2.103) (622) (3.599) (337) (7230 ) (14,283) Balance at 30 June 2013 14 ,384 143,055 32,356 34, 598 83, 836 8 ,200 24,191 14,029 725,228 1,079,877 Balance at 1 July 2013 14.384 143,055 32,356 34 598 83.836 8,200 24.191 14,029 725,228 1,079.877 Additions - 213 1,704 8 1 507 539 1,544 649 23.601 29,765 Revaluation movement (61) - - 38,238 38.177 Disposals - (30) (489) (11) (37) (135) (1,398) (72) (3.283) (5,455) Balance at 30 June 2014 14,323 143,238 33,571 34,595 85.306 8,604 24,337 14.606 783, 784 1,142,364 Accumulated depreciation and impairment losses Balance at 1 July 2012 - 80,468 19 736 12 115 20.255 5,038 10,532 6,761 351,297 506.202 Depreciation expense - 1,911 2,620 640 5199 553 2,471 1,016 14,693 29,103 Revaluation movement - - - 973 2.473 (21) - - 5,408 8.833 Disposals - (79) (169) - (831) (483) (2.496) (267) (5.622) (9,947) Balance at 30 June 2013 - 82,300 22,187 13,728 27,096 5,087 10,507 7,510 365,776 534,191 Balance at 1 July 2013 - 82,300 22.187 13.728 27,096 5,087 10,507 7,510 365 .776 534,191 Depreciation expense - 1,897 2,686 725 5.144 531 2,244 1,279 15,710 30,216 Revaluation movement - - 23.558 23,558 Disposals - (20) (448) (10) ( 15) (111) (918) (72) (2,288) (3,882) Balance at 30 June 2014 - 84,177 24,425 14,443 32,225 5,507 11.833 8,717 402,756 584,083 Carrying amounts At 1 July2012 14,384 62,115 12.115 18.885 61 ,324 3,386 12,951 5,345 345.226 535,731 At 30 June 2013 14,384 60,755 10,169 20 ,870 56.740 3,113 13,684 6.519 359,452 545,686 At 30 June 2014 14,323 59,061 9,146 20 1 52 53,081 3,097 12,504 5,889 381.028 558,28 1 Dep:rtmen: al -.ar;_talsta'ements Basis of valuations Valuations for assets other than land within asset classes valued at fair value effective as at 30 June 2014 have been determined by applying the indexation model and using the appropriate capital goods index as published by Statistics New Zealand. The asset values determined using this methodology were certified as fair value by an independent registered valuer, F.E. Spencer (FPINZ, FNZIV) of Logan Stone Ltd a) Land and buildings Land is initially recognised at cost and is revalued annually based on assessments as provided by Quotable Value Limited. Land not matched to an assessment is valued using an average per hectare rate. These values were certified as fair value by an independent registered valuer FE Spencer (FPINZ, FNZIV) of Logan Stone Ltd The valuation is effective as at 30 June 2014. Adrrumstration buildings were valued at fair value effective as at 30 June 2012 b) Visitor assets A number of different asset classes are included under the grouping 'Visitor Assets', including tracks, structures, buildings (predominantly huts), signs and land formation. These asset classes are valued individually in accordance with the Department's accounting policy. The land formation costs of tracks, car parks and roads ($114 million as at 30 June 2014) have been included in the financial statements and are not depreciated. Tracks were valued at fair value effective as at 30 June 2013 Buildings, structures, campgrounds/amenity areas and signs were valued at fair value effective as at 30 June 2014. c) Other property, plant and equipment Fencing and infrastructure assets were valued at fair value effective as at 30 June 2013 Property, plant and equipment under construction The total amount of property, plant and equipment under construction is $16 3 million (2013 $10.8 million). Department of Conservation Annual Report for the year ended 30 June 2014 107 0 -0 De:.arrmental Financial st:i-crnents Note 10: Intangible assets Acquired Internally Total software generated software $000 $000 $000 Cost or valuation Balance at 1 July 2012 5,171 16,162 21,333 Additions 3,117 1,617 4,734 Disposals (90) - (9D) Imoa'rrnent losses (946) ;1,284) (2.230) Balance at 30 June 2013 7,252 16,495 23,747 Balance at 1 July 2013 7,252 16,495 23,747 Addrt ons 2,083 1,822 3.905 Disposa's (30) - 130) Imoarrrent losses - - - Balance at 30 June 2014 9,305 18 317 27.622 Accumulated depreciation and impairment losses Balance at 1 July 2012 1,476 10,105 11,581 Amortisation expense 605 1,817 2 422 Disposals (54) - (54) Impairment losses - - Balance at 30 June 2013 2027 11,922 13 949 Balance at 1 July 2013 2,027 11,922 13,949 Amortisation expense 933 1,621 2,554 Disposals (26) - (26) Impairment losses - - - Balance at 30 June 2014 2,934 13 ,543 16,477 Carrying amounts At 30 June 2012 3,695 6,057 9,752 At 30 June 2013 5 ,225 4,573 9,798 At 30 June 2014 6.371 4,774 11,145 There are no restrictions over the title of the Depa tment's intangible assets, nor are any intangible assets pledged as security for liabilities. 108 Department of Conservation Annual Report for the year ended 30 June 2014 Dep5rt:nen•al f_r.sncial sta-ements Note 11: Employee entitlements (current portion) 30/06/13 30/06/14 Actual Actual $000 $000 Accrued sa;anes and wages 4,513 4,264 Long service and retinng leave 1,796 1,600 Other employee entit,ements 1 7165 11.704 Total employee entitlements (current portion) 23,774 17,568 Other employee entitlements include accrued annual leave, time-off-in-lieu, vested long service leave and a provision for restructuring costs of some $o.5 million (2013. $6 6 million), resulting from implementing the Delivery Review Project recommendations The change in the latter provision is the main reason for the reduction in employee entitlements Department of Conservation Annual Report for the year ended 30 June 2014 109 Deparrmental Enarcral statements Note 12: Provisions 30/06/ 13 30/06/14 Actual Actual $000 $000 Current portion Environmental 936 11,653 ACC Partnershio Programme 209 152 Onerous contracts 142 50 Total current portion 1,287 11,855 Non current portion ACC Partnership Programme 224 315 Onerous contracts 27,1 224 Total non-current portion 498 539 Total provisions 1,785 12,394 Movements in provisions. Environmental Balance at 1 July 1,486 936 Provision utilised or reversed during the year (1 145) (361) Provision made during the year 595 11,078 Balance at 30 June 936 11,653 ACC Partnership Programme Balance at 1 July 764 433 Provision utilised or reversed during the year (431) - Provision made during the year 100 34 Balance at 30 June 433 467 Onerous contracts Balance at 1 July - 416 Provision utilised or reversed during the year - (142) Provision made during the year 416 - Balance at 3D June 416 274 Total provisions 1,785 12,394 110 Department of Conservation Annual Report for the year ended 30 June 2014 9 0-- - - Dea:rtmen: sI fiia,cial sta'ements Battle for Our Birds Following the 2013/14 beech mast event an amount of $82 million has been provided for in the financial year ending 30 June 2014 to cover costs to be incurred by the'Battle for Our Birds' programme Mast events are prolific Battle flowering bursts among forest trees, such as beech, over spring and summer This flowering in turn leads to a bumper seed fall in the following autumn and BIRDS the widely available seed on the forest floor drives a rapid increase in rat and stoat numbers. Rats and stoats both prey on native species and the surge in the N MnS' predator population puts vulnerable native species under extreme pressure, particularly during the spring when birds are nesting and raising offspring. To protect our native wildlife the Department is implementing the'Battle for Our Birds' predator control programme The Department will extend the South Island forest areas targeted for aerial protection with biodegradable 1080 pesticide and boost ground-based trapping networks. Cleaning up contaminated sites $15 million has been recognised as the Department's expected share of the decontamination of the Prohibition Ball Mill and Alexander Gold Mine sites at Watuta on the West Coast. Testing at the old mine site in the Victoria Forest Park has identified very high levels of arsenic in the soil and water that poses a nsk to people and the environment. The Prohibition Mine site was contaminated through the processing of ore for gold when the mill was operating between 1938 and 1951 Department of Conservation Annual Report for the year ended 30 June 2014 1 1 1 r-^ Departmental financ.al sta'ernents Note 13: Employee entitlements (non-current portion) 30/06/13 30/06/14 Actual Actual Note $000 $000 Retiring leave 13,886 12,504 Long service leave 2,753 2,579 16,639 15,083 Less Current portion of long service and retiring leave 11 (1,796) 0,600) Total employee entitlements (non-current portion) 14,843 13,483 The measurement of the retirement and long service leave obligations depends on factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liability are the salary growth factor and the discount rate Any changes in these assumptions will affect the carrying amount of the liability Discount rates and CPI rates used in the actuarial valuation are as specified by the New Zealand Treasury for valuations of this type and are effective for valuations as at 30 June 2014. The table below shows the impact that varying the assumed rate of salary growth and discount rates has on the valuation result if all other assumptions are constant The demographic assumptions used are based on New Zealand population mortality and the experience of superannuation arrangements in New Zealand and Australia. Increase/(decrease) in surplus/(deficit) Changes in assumptions ($000's) Salary growth 1 % below assumed 1,166 1 % above assumed (1,334) Discount rates 1 % above assumed 1.129 1 % below assumed (1,312) 112 Department of Conservation Annual Report for the year ended 30 June 2014 Deasrt,nen:al financial starements Note 14: Taxpayers' funds 30/06/ 13 30/06/14 Actual Actual $000 $000 General funds Balance at 1 July 439.571 457,285 Net surplus for the year 13,344 1 958 Transfers from revaluation reserve on disposal 1,1199 (1 580) Capital repayments to the Crown (526) - Cao;tal contributions from the Crown 10.000 - Return o' operating surplus to the Crown ;6,193) (990) Asset transfers 5etween Department and Crown (110) 207 Balance at 30 June 457 ,285 456,880 Property, plant and equipment revaluation reserves Balance at 1 July 117.143 118.315 Revaluat,on gains 2,371 14,619 Transfer to general funds on disposal (1,199) 1,580 Balance at 30 June 118,315 134,514 Total taxpayers ' funds at 30 June 575,600 591,394 Revaluation reserves consist of: Land revaluation reserve 13,451 13,390 Buildings revaluation reserves 31,571 33,146 Visitor assets revaluation reserves 68,800 83,638 Other revaluation reserves 4,493 4,340 Total revaluation reserve 118,315 134,514 Department of Conservation Annual Report for the year ended 30 June 2014 113 D-parrmental fina-:c!al statements Note: 15 Reconciliation of net surplus to net cash flow from operating activities 30/06/13 30/06/14 Actual Actual $000 $000 Net surplus/(deficit) 13 344 1,958 Add non-cash items Depreciation, amortisation and imoairrnent expenses 33,755 32,770 Donated assets (3,954) (214) lo:alnon-carpit- iis 2963 32,556 Add items classified as investing or financing activities Na loss on :N,poca of ;toper y pi i, i, and equ,pment 2,278 388 Add/(less ) working capital movements (l nic)/dec in preosy nen•s (597) (85) (Inc)/dec in'nventories 53 (133) (Inc)/dec in trade and other receivables (1,5271 (1,310) (Inc)/dec in debtor Crown 4,059 3,927 Inc/(dec) in trade and other payab'es (4.375) 4,223 Inc/(dec) in GST payable 1,579 (892) Inc/(dec) in employee entitlements 6,165 (7,566) Inc/(dec) in other provisions (465) 10,609 Inc/(dec) in revenue in advance 1.412 1,211 Ne: working capita' movement 6 306 9,982 Net cash flow from operating activities 51,729 44,886 114 Department of Conservation Annual Report for the year ended 30 June 2014 • r-^ Dep rt ,nenral in a: _ial statements Note 16: Financial instrument risks The Department's activities expose it to a variety of financial instrument risks, including credit risk and liquidity risk The Department has a series of policies to manage the risks associated with financial instruments and seeks to minimise exposure from financial instruments These policies do not allow any transactions that are speculative in nature to be entered into. Credit risk Credit risk is the risk that a third party will default on its obligation to the Department, causing the Department to incur a loss. In the normal course of its business, credit risk apses from debtors and deposits with banks The Department is only permitted to deposit funds with Westpac, a registered bank, and enter into foreign exchange forward contracts with the New Zealand Debt Management Office These entities have high credit ratings For its other financial instruments, the Department does not have significant concentrations of credit nsk. The Department's maximum credit exposure for each class of financial instrument is represented by the total carrying amount of cash and net receivables There is no collateral held as security against these financial instruments, including those instruments that are overdue or impaired. Liquidity risk Liquidity risk is the risk that the Department will encounter difficulty raising liquid funds to meet commitments as they fall due In meeting its liquidity requirements, the Department closely monitors its forecast cash requirements with expected cash draw-downs from the New Zealand Debt Management Office The Department maintains a target level of available cash to meet liquidity requirements The following table analyses the Department's financial liabilities that will be settled based on the remaining period at the statement of financial position date to the contractual maturity date The amounts disclosed are the contractual undiscounted cash flows Department of Conservation Annual Report for the year ended 3o June 2014 115 Det armental Fnan. "a1 statements Financial instrument risks Less than From 6-12 From 1-5 Over 6 months months years 5 years Liquidity risks $000 $000 $000 $000 2013 Trade and other payab!es 13 706 - Finance leases 361 360 1,515 - 2014 Trade and other pay ab!es 18,006 - - - Finance leases 372 372 878 - The carrying amounts of financial assets and financial liabilities in each of the NZ IAS 39 categories is as follows. 30/06/13 30/06/14 Actual Actual Notes $000 $000 Loans and receivables Cash 51,807 58.011 Trade and other receivables 7 7.518 8.828 Debtor Crown 8 28,740 24,813 Total loans and receivables 88,065 91,652 Financial liabilities measured at amortised cost Trade and other payables 13,706 18,006 Finance leases 1,988 1,482 Total financial liabilities measured at amortised cost 15 ,694 19,488 116 Department of Conservation Annual Report for the year ended 30 June 2014 • • Deasrt:nen-al n--aracial sta•ements Note 17: Related party transactions and key management personnel The Department is a wholly owned entity of the Crown. The Government significantly influences the roles of the Department as well as being its major source of revenue One employee of the Department is a close family member of a member of the Department's Senior Leadership Team. The terms and conditions of this employment contract are no more favourable than the Department would have adopted if there was no relationship to that staff member. No other transactions were carved out with related parties of the Department's Senior Leadership Team. 30/06/13 30/06/14 Actual Actual Key management personnel compensation $ 000 $000 Salaries and other short-term benefits' 1,993 2,251 Other long-term benef,;s 45 Termination benefits 187 Total key management personnel compensation 2,038 2,438 The Director-General's remuneration is determined and paid by the State Services Commission The 2012/13 figure has been restated to include the Director-General's remuneration Key management personnel compensation includes the Director-General and the six members of the Senior Leadership Team Long-term benefits include long service leave and retiring leave Note 18: Capital management The Department's capital is its equity (or taxpayers' funds), which comprise general funds and revaluation reserves. Equity is represented by net assets. The Department manages its revenues, expenses, assets, liabilities and general financial dealings prudently. The Department's equity is largely managed as a by-product of managing income, expenses, assets, liabilities and compliance with the Government Budget processes and with instructions issued by the New Zealand Treasury. The objective of managing the Department's equity is to ensure the Department effectively achieves its goals and objectives for which it has been established, whilst remaining a going concern. Note 19: Events after balance date No significant events that may impact on the financial statements have occurred between year-end and the signing of these financial statements (2013 none) Department of Conservation Annual Report for the year ended 30 June 2014 117 Non-departmental fi-rid^icia1 scneduies Schedule of income - Crown as administered by Department of Conservation for the year ended 3o June 2014 30/06/13 30/06/14 30/06/14 30/06/14 Actual Budget* Revised Actual Budget* Note $000 $000 $000 $000 Income Concessions leases and hcences 1 13 360 13 800 13 800 13,777 Other operational revenue 2,681 3,897 3,897 2.673 Capital receipts 1,319 - - 1 549 Total income 17,360 17,697 17,697 17,999 ' The statement of accounting policies provides explanations of these figures which are unaudited. t Other operational revenue includes rates recovery revenue , which was previously included under Concessions , leases and licenses Prior year amounts have been restated to reflect this change. Non-departmental income is administered by the Department of Conservation on behalf of the Crown. As this income is not established by the Department nor earned in the production of the Department's outputs, it is not reported m the departmental financial statements Schedule of expenses - Crown as administered by Department of Conservation for the year ended 30 June 2014 30/06/13 30/06/14 30/06/14 30/06/14 Actual Budget' Revised Actual Budget' $000 $000 $000 $000 Vote Conservation Aporopriatton for non-departmental output classes 12 418 34,259 15.236 13.160 Appropriation for non-departmental other expenses 3,690 6,824 4,802 2 957 GST input on appropriations 1,576 2,712 2,712 1 633 Other (415) (3 720) (718) - Total expenses 17,269 40 ,075 22,032 17,750 The statement of accounting policies provides explanations of these figures which are unaudited. The schedule of expenses - Crown as administered by Department of Conservation summanses non-departmental expenses that the Department administers on behalf of the Crown. Further details are provided in the schedule of expenses and capital expenditure against appropriations - Crown as administered by Department of Conservation. The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements. 118 Department of Conservation Annual Report for the year ended 30 June 2014 • • =Non-depa: n-rental -nano a! sonedcles Schedule of expenses and capital expenditure against appropriations - Crown as administered by Department of Conservation for the year ended 3o June 201L 30/06/13 30/06/14 30/06/14 30/06/14 Actual Budget' Revised Actual Budget' $000 $000 $000 $000 Vote Conservation appropriation for non -departmental output classes Identification and implementation of protection for natural and 7,759 21,047 9,331 8,637 historic places Management services for natu,ai and historic places 1,557 1,932 1,932 1.924 Moutoa Garde-is/Pa Rai tore 23 23 23 23 NZ biodiversity advice and condition funds 2.939 10,812 3,920 2 546 Stewart island infrastructure 140 445 30 30 Tot lc,:p:ittD•nsei 12.4'8 34_c9 15,236 13,160 Appropriation for other expenses incurred by the Crown Esdanade reserve compensation - 60 60 - Ma:aurarga Kura Ta,ao fund 746 840 743 658 Subscr,phons to internat'onal crcan sst.cns 319 405 405 328 Payment of rates on properties for concessionaires 739 839 839 771 Warcaremoana lakebed lease 24' 1 241 241 241 Losses on d sposal of properly plant and equipment - 2 525 600 - Redress-Foreshore and Seabed Act 2004 80 230 230 Vesting of reserves 647 650 650 - Depreciation 918 934 934 924 Impaired and written-off receivables - 100 100 35 GUb-tcta other expenses 3.690 6.821 ---- 4,502 -- - 2,957 Impairment of public conservation land 10,113 50 3.052 - Total other expenses 13,803 6.874 7 ,854 2,957 Appropriations for capital expenditure Purchase and development of reserves 478 3,800 4,065 11A Crown land acquisitions 67 1,847 1,847 3 Total capital expenditure 545 5 , 647 5,912 117 Total expenses and capital expenditure against 26 , 766 46,780 29,002 16,234 appropriations • The statement of accounting policies provides explanations of these figures which are unaudited The schedule of expenses and capital expenditure against appropriations - Crown as administered by Department of Conservation details expenses and capital expenditure incurred against appropriations. The Department administers these appropriations on behalf of the Crown. Expenses not requiring appropriation include revaluation of fixed assets and GST input tax on appropriations The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements Department of Conservation Annual Report for the year ended 3o June 2014 119 Non-depart rter-a1 financial schedu:es Schedule of assets - Crown as administered by Department of Conservation as at 30 June 2014 30/06/13 30/06/14 30/06/14 30/06/14 Actual Budget' Revised Actual Budget* Notes $000 $000 $000 $000 Current assets Cash 31,991 -16,069 88.782 18,386 Receivables and prepayments 4,843 4,618 4,618 3 672 Non-current assets held for sale 2 14,350 - - 14,157 Total current assets 51,184 50.687 93,400 36,215 Non-current assets Property, plant and equipment 3 5 399,395 5,506,056 5,418,647 5,467 483 Total non-current assets 5,399,395 5,506,056 5,418,647 5,467,483 Total assets 5,450,579 5,556, 743 5 ,512,047 5,503,698 ' The statement of accounting policies provides explanations of these figures which are unaudited. Schedule of liabilities - Crown as administered by Department of Conservation as at 30 June 2014 30/06/13 30/06/14 30/06/14 30/06/14 Actual Budget' Revised Actual Budget' $000 $000 $000 $000 Current liabilities Payables and advances 1.418 2,743 9,329 819 Provisions 1,921 - - 2,410 Total current liabilities 3,339 2,743 9,329 3.229 Total liabilities 3,339 2,743 9,329 3,229 ' The statement of accounting policies provides explanations of these figures which are unaudited. The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements. 120 Department of Conservation Annual Report for the year ended 30 June 2014 Non-departrne^ta `nano s, sc^ec lea Schedule of commitments - Crown as administered by Department of Conservation as at 30 June 2014 30/06/13 30/06/14 Actual Actual $000 $000 Other non-cancellable operating leases 40 Total commitments - 40 Commitments by term Less than 1 year - 18 1-2 years 18 2-5 years - 4 Greater than 5 years - Total commitments - 40 Schedule of contingent liabilities and contingent assets - Crown as administered by Department of Conservation as at 30 June 2014 30/06/13 30/06/14 Actual Actual $000 $000 Quantihaole liabilities 4.146 9,141 Total contingent liabilities 4,146 9,141 There were ten claims against the Crown, seven of which are not currently quantifiable The largest item relates to earthquake-strengthening Turnbull House, which could cost as much as $8 million. Contingent assets The Crown as administered by the Department of Conervation has no contingent assets (2013 nil). The accompanying accounting policies and notes form part of, and should be read in conjunction with, these financial statements. Department of Conservation Annual Report for the year ended 30 June 2014 121 0 0 Statement of accounting policies Reporting entity Goods and Services Tax (GST) These non-departmental schedules and statements All items in the non-departmental schedules, including present financial information on public funds managed appropriation statements, are stated exclusive of GST, by the Department on behalf of the Crown except for receivables and payables, which are stated on a GST-inclusive basis. In accordance with instructions These non-departmental balances are consolidated into issued by the Treasury, GST is returned on revenue the Financial Statements of the Government Refer also received on behalf of the Crown, where applicable. to the Financial Statements of the Government for a full However, an input tax deduction is not claimed on understanding of the Crown's financial position, results non-departmental expenditure Instead, the amount of operations and cash flows for the year of GST applicable to non-departmental expenditure is Accounting policies recognised as a separate expense and eliminated against GST revenue on consolidation of the Government The non-departmental schedules and statements have Financial Statements. been prepared in accordance with the Government's accounting policies as set out in the Financial Statements Trade and other receivables of the Government, and in accordance with relevant Short-term trade debtors and other receivables are instructions and circulars issued by The Treasury recorded at their face value, less any provision for Measurement and recognition rules applied in the impairment. Impairment of a receivable is established preparation of these non-departmental schedules and when there is objective evidence that the Department statements are consistent with New Zealand generally will be unable to collect amounts due according to the accepted accounting practice as appropriate for public original terms of the receivable Significant financial benefit entities. difficulties of the debtor, probability that the debtor will enter into bankruptcy and default in payments are The following particular accounting policies have been considered indicators that the debtor is impaired applied. The amount of the impairment is the difference between Budget and revised budget figures the asset's carrying amount and the present value The budget and the revised budget figures are of estimated future cash flows, discounted using the those presented in the Supplementary Estimates of original effective interest rate Appropriations for the Government ofNew Zealand and The carrying amount of the asset is reduced through Supporting Information for the year ending 30 June 2014 the use of a provision for impairment account and the (the Budget is 20 13 Budget Economic and Fiscal Update amount of the loss is recognised in the surplus or deficit [BEFU 2013] out-year 1 figures [the Estimates Budget] Overdue receivables that are renegotiated are reclassified and the Revised Budget is the Supplementary Estimates as current (that is, not past due) Budget 2014 out-year o figures) The budget and revised budget figures have been Non-current assets held for sale prepared in accordance with NZ GAAP, using Non-current assets held for sale are classified as held accounting policies that are consistent with those for sale if their carrying amount will be recovered adopted in preparing these financial statements principally through a sale transaction, rather than through continued use. Non-current assets held for sale Revenue are measured at the lower of their carrying amount and The Department collects revenue on behalf of the Crown. their fair value less costs to sell. This is mainly from concession fees, rent/leases and for write-downs of non-current licences from commercial users of Crown-owned land. Any unpaument loss held for sale is offset against the revaluation Revenue is recognised when earned and is reported in assets reserve. exceeded, the balance is recognised in the financial period to which it relates. If that is the surplus or deficit. 122 Department of Conservation Annual Report for the year ended 30 June 2014 • No-:-departr-.& eta fnanc:a! scried+ Ies Non-current assets held for sale (including those that The reversal of an impairment loss on a revalued asset are part of a disposal group) are not depreciated or is credited to the revaluation reserve However, to the amortised while they are classified as held for sale extent that an impairment loss for that class of asset was previously recognised in the surplus or deficit, a reversal Property, plant and equipment of the impairment loss is also recognised in the surplus Land is initially recognised at cost and is revalued or deficit For assets not carved at a revalued amount, annually based on assessments provided by Quotable the reversal of an impairment loss is recognised in the Value Limited Land not matched to an assessment is surplus or deficit valued using an average per hectare rate Trade and other payables Historic buildings used for rental activities are stated at Short-term trade creditors and other payables are fair value using optimised depreciated replacement cost recorded at their face value as determined by an independent registered valuer. They are valued on an annual basis. Provisions Cultural assets are stated at fair value. These assets are The Department recognises a provision for future not depreciated and are valued at least every 5 years. expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a Depreciation result of a past event, and it is probable that an outflow Depreciation is provided on a straight-line basis at rates of future economic benefits will be required to settle the that will write-off assets, less their estimated residual obligation and a reliable estimate can be made of the value, over their remaining useful life amount of the obligation. Provisions are not recognised for future operating losses. Impairment Property, plant and equipment that have a finite Provisions are measured at the present value of the useful life are reviewed for impairment when there expenditures expected to be required to settle the is an indicator of impairment. An impairment loss is obligation using a pre-tax discount rate that reflects recognised for the amount by which the asset's carrying current market assessments of the time value of money amount exceeds its recoverable amount The recoverable and the risks specific to the obligation. The increase in the amount is the higher of an asset's fair value less costs to provision due to the passage of time is recognised as a sell and value in use. finance cost Value in use is the depreciated replacement cost for Commitments an asset where the future economic benefits or service Expenses yet to be incurred on non-cancellable contracts potential of the asset are not primarily dependent on the that have been entered into on or before balance date are asset's ability to generate net cash inflows, and where the disclosed as commitments to the extent that there are Department would, if deprived of the asset, replace its equally unperformed obligations. remaining future economic benefits or service potential. Cancellable commitments that have a penalty or exit cost If an asset's carrying amount exceeds its recoverable explicit in the agreement on exercising that option to amount, the asset is the carrying amount impaired and cancel are included in the statement of commitments at is written down to the recoverable amount For revalued the lower of the remaining contractual commitment and assets, the impairment loss is recognised against the the value of the penalty or exit cost. revaluation reserve for that class of asset Where this results in a debit balance in the revaluation reserve, the Contingent liabilities balance is recognised in the surplus or deficit Contingent liabilities are disclosed at the point at which For assets not camed at a revalued amount, the total the liability is evident. impairment loss is recognised in the surplus or deficit. Department of Conservation Annual Report for the year ended 30 June 2014 123 0 0 - Notes to the schedules Note 1: Concessions, leases and licences 30/06/13 30/06/14 Actual Actual $000 $000 Guiding 2,697 2,793 Telecomrnunicaaons 1.647 1,978 Grazing 1.374 1 438 Tourism occupations 1,413 1 399 Ski areas 978 1 883 Soorting and soecia. events 50 78 Aircraft !and,ngs 1,4196 1.036 Residenttialhecrealional 1.034 1 069 Other occupations 622 665 Venicle transport 276 267 Boating 710 385 Filming 144 142 Easements 496 385 Extractions fees 40 56 Miscellaneous 383 183 Total concessions , leases and licences 13,360 13,777 Note 2: Non-current assets held for sale 30/06/13 30/06/14 Actual Actual $000 $000 Land' 14.350 14,157 Total non current assets held for sale 14,350 14,157 Compnses mainly of land that has been identified for settlement of Treaty of Waitangi claims. 124 Department of Conservation Annual Report for the year ended 30 June 2014 I Von-deparr.:enta; financ i al screc.:les Note 3: Property, plant and equipment Land Buildings Infrastructure Cultural Total Assets $000 $000 $000 $000 $000 Cost or valuation Balance at 1 July 2012 5.440,358 69,836 13,197 5.100 5.528,491 Addit,ons 4 012 4,012 Revaluat,on mo.'ement (84,466) 7,858 - - (76,608) Disposals (1,917) - - - (1.917) Assets tra -isferred to cu rent (8,195) - - - (8.195) asses Balance at 30 June 2013 5.349 ,792 77,694 13,197 5,100 5,445,783 Bala•ice at 1 July 2013 5 349.792 77,694 13,197 5100 5 445,783 Add-tions 10 398 - (6) - 10,392 Revaluation movement 59 255 945 - - 60.200 Disposals 637 - - - 637 Assets transferred to current (1,642) - - (1,642) asses Balance at 30 June 2014 5,418 440 78 ,639 13, 191 5,100 5515,370 Accumulated depreciation and impairment losses Balance at 1 July 2012 - 40.811 - - 40.811 Depreciation expense - 713 205 - 918 Revaluation movemeit - 4 659 - - 4,659 Disoosals - - - - - Balance at 30 June 2013 - 46,183 205 - 46,388 Balance at 1 July 2013 - 46,183 205 46,388 Depreciation expense - 793 131 - 924 Revaluation movement - 575 - 575 Disposals - - - - - Balance at 30 June 2014 - 47,551 336 - 47,887 Carrying amounts At 1 July2012 5,440 , 358 29 .025 13. 197 5,100 5,487,680 At 30 June 2013 5,349,792 31, 511 12,992 5.100 5,399,395 At 30 June 2014 5 ,418,440 31 , 088 12 855 5 . 100 5,467,483 Department of Conservation Annual Report for the year ended 30 June 2014 125 • 0 Non- ce a:t-ne- gal firarcial schedu es Land is initially recognised at cost and is revalued annually based on rateable valuations provided by Quotable Value Individual land lots are only updated every three years by Quotable Value using a mass appraisal process. Land not matched to an assessment is valued using an average per hectare rate. These values were certified as fair value by an independent registered valuer F E Spencer (FPINZ, FNZIV) of Logan Stone Ltd The valuation is effective as at 30 June 2014. The use and disposal of Crown land managed by the Department is determined by legislation. The main Acts are the Reserves Act 1977, the Conservation Act 1987 and the National Parks Act 1980. These Acts impose restrictions on the disposal of surplus areas and the use of reserves, conservation areas and national parks Crown land is not subject to mortgages or other charges Specific areas may be included in Treaty settlements if the Crown decides to offer those areas to claimants Historic buildings used for rental activities were valued by an independent registered valuer, F.E. Spencer (FPINZ, FNZIV) of Logan Stone Ltd. The valuation is effective as at 30 June 2014, Given the histonc nature of these buildings, fair value has been determined using depreciated replacement cost The Department has a number of heritage assets under its care due to the historical significance of these assets to New Zealand. The cost of heritage assets is not able to be reliably measured given the nature of these assets and accordingly these assets are not able to be recognised on the schedule of assets. Note 4: Provisions Environmental provisions This is the estimated cost of rectifying the environmental damage in the following affected or contaminated sites that the Crown has an obligation to remedy. • The tailings and tunnels in the Maratoto Mine may excrete contaminants in the water. • A number of abandoned coalmines, both underground and open cast, within the Benneydale, Mahoenui, Pirongia, Wartewhenua and Ohura coalfields The risks of contamination are associated with the treatment ponds, tailing dams and underground drives. Earthquake repairs A provision of $0 5 million has been recognised in the financial statements for the year ending 30 June 2014 being the anticipated cost to repair damage following the 2013 earthquakes in Wellington to the Old Government Building. Designations There is also a provision relating to a designation placed on private land to protect the property from development. Note 5: Events after balance date No significant events that may impact on the actual results have occurred between year-end and the signing of these financial statements (2013 none) 126 Department of Conservation Annual Report for the year ended 30 June 2014 Additional financial information Departmental expenses by output for the year ended 30 June 2014 30/06/ 13 30/06/14 Actual Actual $000 $000 Vote Conservation Management of natural heritage Fire control 11,386 8,923 Conserva'ion Serv.ces Programme 1,370 2,278 Natural he-itage restoration 13.=19 9.690 Possum control 10,664 9 363 deer contro' 1,324 1,189 Goat control 6,018 4,976 Other terrestrial animal pests 8.689 11,934 Aquanc animal pest control 669 477 Island management and restoration 3,479 3,226 Fencing (stock control) 12,493 11,060 Inventory and monitoring 2.322 3,689 Weed control 16,919 17,086 Legal protection of areas and sites 7,443 8,784 Resource Management Act advocacy and coastal planning 3,618 4,949 Species conservation programmes 31,742 29,699 Mainland island sites 1.843 1,757 CITES (Convention on International Trade in Endangered Species) 874 774 Specitc pest and disease response 1,473 2,207 Species persistence 6,169 6,153 Ecosystems conservation 12,440 24,754 Nationally iconic natural features maintenance - 27 Total management of natural heritage 154,354 162,995 Management of historic heritage Historic heritage restoration 4.717 4,763 Total management of historic heritage 4.717 4 763 Department of Conservation Annual Report for the year ended 30 June 2014 127 • • Add;' o ns: nna ;vial _niormat=, 30/06/13 30/06/14 Actual Actual $000 $000 Vote: Conservation Management of recreational opportunities Huts 17,680 18 077 Booked accommodation 1.811 2.843 Campsites 15,237 15,850 Tracks 47,693 49.759 Ameiity areas and community services 11,050 12,252 Roads and carparks 4,920 a 859 Visitor centres 12 671 12,761 Visitor information 3,048 2.872 Recreation concessions 4,674 8,084 Rec•eat;on planning and •noact rnorr.toring i 1,038 10,650 Taupo sports fsheries 2 833 2.652 Non-recreation concessions 4,808 3,412 R ecmeano,,al ooportunities review 287 98 iota i cn::.renent of r,;,,rectionai oppo;',in,. s 137,950 14 .' 69 Conservation with the community Part,cipat,on 16,641 19,035 Educat,on and communication 3,695 3,432 International obiigat-ons 597 1,189 Effective implementation o f Treaty settlements 289 1,568 Tota conservcnon v itn the comni,m :y 21 222 25 224 Policy advice and Ministerial servicing Policy advice 939 1,042 Ministenai services 18 18 Management planning 1,352 2,294 Statutory bodies 1,312 1.415 Biosecu ri ty policy advice 1 97 366 Total policy advice and Ministerial servicing 3 818 5.135 Crown regional nest management strategies' contribution 3.160 2.927 Total Vote Conservation 325,22 1 345,2 1 3 Add: Unrealised remeasurement gains (2.697) (444) Canterbury earthquakes recovery costs - 110 Total expenses per Statement of Financial Performance 322,524 344,879 128 Department of Conservation Annual Report for the year ended 30 June 2014 • • Appendices Appendix 1: DOC's responsibilities and consent applications regarding the coastal and marine environment. DOC manages about 8.5 million hectares of land, 38 marine reserves (covering almost 1.7 million hectares), The Department also contributes to all-of-government Government's stated and 6 marine mammal sanctuaries (covering nearly 2.4 activities in response to the million hectares).* However, a considerable proportion pnonties for the public sector of the land is snow and ice, and much of DOC's work is The Government's dnvmg goals in 2013/14 were to focused on relatively small areas of land or water where responsibly manage the Government's finances, build a conservation values are high, whether that is for natural more productive and competitive economy, deliver better heritage reasons or in support of visitor experiences or public services within tight financial constraints and community engagement. rebuild Chnstchurch-' DOC is responsible for encouraging recreation on the DOC's mandate and context is also set by a statutory lands and waters it manages To that end, it provides and planning framework that supports the legislation. the manages histonc sites and visitor facilities, including Conservation General Policy, General Policy for National walking, biking and 4WD tracks, huts, campsites and Parks and the strategies and plans that flow from these visitor centres policies. A series of conservation management strategies manages on DOC works within the statutory concessions (CMSs) identifies the places that DOC `outcomes framework with tourism operators and other third party behalf of New Zealanders The CMSs establish activities on public conservation lands and waters at places' and high-level objectives that guide DOC's waters These include grazing, mining and the use of sites for management of public conservation lands and telecommunication purposes DOC manages protected species and public social DOC supports the Minister of Conservation in conservation lands and waters to deliver economic, exercising responsibilities under the Resource and environmental benefits, which, in combination, and Management Act 1991 for the coastal and marine are key contnbutors to New Zealanders' prosperity environment. This includes providing advice to the wellbeing Minister and input into local government policies, plans Manne reserves and marine mammal sanctuaries are listed in the companion report Department of Conservation biodiversiry indicators 2014 assessment - supplementary material. t Government's goals for 2013/14. www treasury govut2/budget/2ot3/bps/o3htm Department of Conservation Annual Report for the year ended 30 June 2014 129 0 0 Appendix 2: Departmental outputs The work DOC does (the outputs it delivers) to achieve each of the intermediate outcomes is shown in. table it.. is Outpu^ i '.y. _l____o^ac_aa andniu Tiuua outputs t at CORLr1bUTe to LVI.S intermediate outcomes. T:blc Output <. h Intermediate outcome Output classes Main outputs Intermediate outcome 1• Management of natural hentage Fire control Natural hentage Conservation Services Programme The diversity of our natural he•itage is Restoration maintained and restored Pest and weed control Legal protection of areas and ma,ine protection Species management Crown contribution to Regional Pest Regional pes' management strategww5 Management Strategies Conservat on with the community Participation Education and Communication Po;icy advice sra'utory p'annmg, and Policy advice services to Mm,,sters and statutory bodies tvl,n,ste•,al sE Dicing Intermediate outcome 2: Management of historic heritage Historic and cultural he°,tage restoration Historic hertage Management of recreational opportunities Asset management Our history is protected and brought to Recreation opportjmt.es management life Recreation concessions Conservation with the community Participation Education and commu nicat,oi Policy advice, statutory panning and Policy advice Ministers services to and statutory bodi es Ministerial servicing Intermediate outcome 3: Management of historic heritage Historic and cultural heritage restoration Recreation Management of recreational opportunities Asset management More people participate in recreation Recreation opportunities management Recreation concessions Conservation with the community Participation Education and communication Policy advice, statutory planning, and Policy advice services to Ministers and statutory bodies Ministerial services Intermediate outcome 4 : Conservation with the community Participation Engagement Education and communication More people engage with conservation and Policy advice statutory planning, and Policy advice value its benefits services to Ministers and statutory bodies Ministerial services 130 Department of Conservation Annual Report for the year ended 3o June 2014 -0 0 Intermediate outcome Output classes Main outputs Intermediate outcome 5: Management of natural heritage Fire control R,acjness opperti n,ves Conservation Services Programme More business opportunities delivering Restoration increased economic prosperity and Pest and weed control conservation gain Legal protection of areas and marine protection Species management Management of historic heritage H storic and cultural heritage restoration Management of recreational opportunities Asset management Recreation opportunities management Recreation concessions Other resource use concessions Conservation with the community Participation Education and cornmu 7ication Policy advice, statutory planning and Policy advice services to Ministers and statutory bodies M,n.ste-ral services Quality assurance for this work is managed through DOC's development and implementation of best practice and standard operating procedures. Where external standards are not available, and/or DOC is the only agency undertaking work in New Zealand, it uses an internal peer review process to ensure best practice remains up to date This process is shown in figure 19 Operational Anecdotal Standards (SOPs, Science Trials reports observations legislation) 1 L 4 1 1 1 Figure 19. DOC's process for changing current best practice. Department of Conservation Annual Report for the year ended 30 June 2014 131 • Appendix 3: Conservation Services programme The Conservation Services Programme undertakes Practical mitigation projects in 2013/14 focused on research into the interactions between commercial inshore bottom longlme, surface longline and trawl fishing and marine protected species In 2013/14,1499 fisheries, with a characterisation of smaller vessel bottom days of observer coverage were achieved to monitor longline fisheries also completed- Other work areas protected species interactions in a range of both inshore included increasing awareness of and implementing and offshore fisheries Programmes to formally confirm measures to reduce interactions with protected species, the identification of observed seabirds, marine mammals, including the production of a newsletter for commercial reptiles and protected fish captured were run in support fishermen. of the observer coverage Projects to optimise observer Final reports can be found on DOC's website at programme data collection, and review information on www doe govt.nz/csp Projects undertaken by the cryptic seabird mortality were also progressed. Conservation Services Programme are reviewed by a Field projects were undertaken as part of population technical working group before posting on the website. studies into New Zealand sea lions, white-capped, The Conservation Services Programme also provided Salvias and Gibson's albatrosses, and black petrels. active input to the Agreement on the Conservation of A modelling project was undertaken to describe the Albatrosses and Petrels, and several regional fishery distribution of protected corals, and existing information management organisations. on oceanic whitetip sharks was reviewed. A 2-year population modelling project on New Zealand sea lions was also completed. 132 Department of Conservation Annual Report for the year ended 30 June 2014 Appendix 4: Performance of Reserve Boards as at 30 June 2013* Reserve Boards - Financial information available Revenue Expenditure Net Assets Reserve Board Type $ $ $ Northland Coates Memorial Church Local purpose 895 623 165,895 Oakura Recreation 2,755 2,350 243 700 Ruakaka Recreation 511,930 455,410 885,200 Ruakaka Central Ha,l 14.188 8,430 75 634 Taunkura Hal, 17,406 23,614 149,865 Waipu Cove Recreation 944,600 839 560 2,437 470 W'iatitiri Recreation 6, 150 1,730 153.370 Auckland Glorit Hal 5,867 18,921 13.197 Bay of Plenty Awakaoonga Ha ! Ha,' 2,160 7,420 129 550 Lake Rotoiti Scenic 9,,-44 '3 509 35312 Whanganut Pakaitore/Moutoa Gardens Historic 33,852 71,528 216.343 Pouk+ore Recreation 5003 9377 136 080 Tiriraukawa Hat 390 281 2.846 Wellington Horowhenua Recreation 910 3,262 36,514 Whitire.a Pa,k Recreation 5,554 11 262 40 799 Nelson /Marlborough Homewood Hall 153 2,918 60 918 Kaitenteri Recreation 4,754624 4,192,394 7,935,175 West Coast Millerton Hall 1.633 1,285 67,749 The Reserve Boards financial information for the following boards is not available Northland Watlaelne (Recreation), Bay of Plenty Matata (Recreation), Whanganui Papanut (Hall), West Coast Charleston (Hall) ' Details are dated 30 June 2013 as they are usually based on audited reports often not available until after the DOC annual report deadlines Department of Conservation Annual Report for the year ended 30 June 2014 133 • • Appendix 5: Search and Surveillance Act 2012, section 171 Annual reporting of search and surveillance powers by agencies other than Police 171 (a) The number o' occas ons on which entry or search powers were exercised without a warrant n the 0 period covered by the report 171(b) The number of occas-ons on which warrantless surveillance powers were exercised in the period 0 covered by the report that involved the use of a surve,llance device 1711c)fq In respect of each kind of surveillance device used without a warrant in the period covered by the 0 report the numbers of that kind of device used (it for P. period of no more then 24 hours 171(c)(i In respect of each kind of surveillance deice used without a warrant in the period covered by the 0 report the numbers of that kind of device used (u) for a period of more than 24 hours but no more than 46 hours 171. (d) The number of persons charged in c-lminal proceedings wnere the coIlec',on of evidential ma.eria+ 0 relevant to those proceedings was s,gnificantly assisted by tre exercise of a warrantless search or surveillance power in .he period covered by the report 171(e) The matters set out n sect-on 172 in relation to surveillance device warrants and declaratory orders nra 134 Department of Conservation Annual Report for the year ended 30 June 2014 0 • Bibliography Ballantine, D.J, Davies-Colley, R J. 2014. Water quality Department of Conservation and Ministry for the trends in New Zealand rivers 1989-2oog. Environmental Environment 2000 The New Zealand Biodiversity JMIUA1101 tug and Assessment 186(3) 1939-1950. Strategy. Department of Conservation and Ministry for the Environment, Wellington. www.biodiversitygovt.nz/ Bellingham, P.J.; Richardson, S J, Gormley, A.M, Husheer, picture/doing/nzbs/contents.html (accessed 21 July 2014) SW, Monks, A. 2014. Department of Conservation biodiversity indicators 2014 assessment Landcare Dymond, J R, Betts, H D, Schierlitz, C S 2010. An Research Contract Report prepared for the Department erosion model for evaluating regional land-use scenarios. of Conservation. Landcare Research, Christchurch Environmental Modelling and Software 25 289-298 www.doc govt.nz/annual-report-2o14. Freeman, D J., MacDiarmid, A.B.; Taylor, RB.; Davidson, Blaschke, P 2013 Health and wellbeing benefits of R.J., Grace, RV., Haggitt, T.R., Kelly, S, Shears, N.T. 2012. conservation in New Zealand Science for Conservation Trajectories of spiny lobster Jasus edwardsu recovery 321. Department of Conservation, Wellington. 37 p. in New Zealand marine reserves: is settlement a diver? Environmental Conservation 39: 295-304- Boubee, JA, Dean, T.L, West, D.W, Barrier, R.FG 1997 Avoidance of suspended sediment by the juvenile Galbraith, L M, Bums, C.W. 2007. Linking land-use, water migratory stage of six New Zealand native fish species body type and water quality in southern New Zealand. New Zealand Journal ofMarine and Freshwater Landscape Ecology 22(2) 231-241. Research, 31(1) 61-69 Government Economics Network Living Standards Hub nz/tiki-index.php?page=WelcometotheLtvm BrandCapital International 2014. DOC brand update www gen.org gStandardsHub (accessed 21 July 2014) 2014 [Report 1] Report prepared for the Department of Conservation. BrandCapital International, Melbourne, Green, W and Clarkson, B 2005. Turning the Tide? Victoria, Australia 58 p A review of the first five years of the New Zealand biodiversity strategy the synthesis report Department of Butcher Partners Limited 2006 Economic benefits of Conservation, Wellington. www.doc govt nz/Documents/ water in Te Papanut Conservation Park Inception Report. conservation/nzbs-report pdf (accessed 21 July 2014) Butcher Partners Ltd report prepared for the Department of Conservation. Department of Conservation, Halpern, B S., Lester, S.E, Kellner, J B. 2010 Spillover from Wellington. 13 p marine reserves and the replenishment of fished stocks Environmental Conservation 36(4): 268-276 Coriolis 2012 Investment opportunities in the New Zealand honey industry. Part of the food and beverage Hughey, KFD, Kerr, G.N., Cullen, R. 2013 Public information project Coriolis report prepared for the perceptions of New Zealand's environment 2013 EOS Ministry of Business, Innovation and Employment Ecology, Christchurch gop http://researcharchivelmcoln. Ministry of Business, Innovation and Employment, ac.nz/bitstream/10182/5744/3/Perceptions_2o 13.pdf Wellington. 68 p www med govt.nz/sectors-industnes/ Ingraham, N L, Mark, A F 2000: Isotopic assessment of food-beverage/pdf-docs-library/information-project/ the hydrologic importance of fog deposition on tall snow conolis-report-investment-opportunities-honey-industry tussock grass on southern New Zealand uplands. Austral May 2013). pdf (accessed 3 Ecology 25(4} 402-208. Department of Conservation 2014a. Biodiversity Kelly, S.; Scott, D., MacDiannid, A.B., Babcock, RC 2000 indicators 2014 assessment - supplementary Spiny lobster, Jasus edwardsu, recovery in New Zealand material. Department of Conservation, Wellington. marine reserves. Biological Conservation 92(3) 359-369 www.doc govt.nz/armual-report-2o14. Kross, S M, Tyhanakis, J M; Nelson, X.J 2012: Effects Department of Conservation 2014b Battle for Our Birds- of introducing threatened falcons into vineyards on Beech mast 2014. doc.govt.nz/battleforourbirds (accessed abundance of passenformes and bird damage to grapes. 21 July 2014) Conservation Biology 26(1). 142-149. Department of Conservation 2014c.'Gtve feedback on Lester, S E., Halpern, B S.; Grorud-Colvert, K, Lubchenco, J, a recent visit to a DOC place'. surveymonkey.com/s/ Ruttenberg, B I., Games, S D4 Airame, S., Warner, R.R. 2009 DOCvisitorsurvey (accessed 21 July 2014 through doc. Biological effects within no-take marine reserves a global govtnz/parks-and-recreation). synthesis. Marine Ecology Progress Series 384 33-46. Department of Conservation 2007. The economic values Mark, A. F.; Dickinson, K J. M. 2008. Maximising of Whangamanno Wetland. Department of Conservation, water yield with indigenous non-forest vegetation- A Wellington. 8 p. doc.govtnz/Documents/conservation/ New Zealand perspective. Frontiers in Ecology and the threats-and-unpacts/benefits-of-conservation/econormr Environment 6(1) 25-34- values-whangamanno-wetlandpdf (accessed 21 July 2014). Department of Conservation Annual Report for the year ended 30 June 2014 135 0 O__ Bibliograpr:y McDowall, R M. 1976 The role of estuaries in the life Russ, G.R, Alcala, A C. 2011 Enhanced biodiversity cycles of fishes in New Zealand. Proceedings of the New beyond marine reserve boundaries The cup spillith over Zealand iCOiOyu.ui Society 23 27-,jL Ecological Applications 21(1). 241-250. Ministry of Tourism (now part of the Ministry of Socialbakers n.d. Analytics statistics. socialbakers com Business, Innovation and Employment). 2009 Tourist (accessed 21 July 2014). activity Nature-based tounsm Tourism sector profile. Statistics New Zealand 2014 International Visitor Survey (August 2009) Ministry of Business, Innovation and YE Dec 2013. Data available at http//nzdotstatstats.govt. 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Quinn, J.M; Cooper, A B., Davies-Colley, RJ., Rutherford, The Economics of Ecosystems and Biodiversity (TEEB) J C, Williamson, RB 1997 Land use effects on habitat, n.d.. www.teebweb org (accessed 21 July 2014) water quality, penphyton, and benthic invertebrates in Waikato, New Zealand, hill-country streams New Zealand Tompkins, J.-M 2010 Ecosystem services provided by Journal ofMarine and Freshwater Research 31(5) 579-597 native New Zealand plants in vineyards. PhD thesis, Lincoln University, Lincoln, Christchurch 282 p Quinn, J M, Stroud, M.J 2002 Water quality and sediment and nutnent export from New Zealand hill-land Tourism New Zealand 2014 Tourism 2025. catchments of contrasting land use New Zealand Journal Drive value through outstanding visitor experience. ofMarine and Freshwater Research 36(2) 409-429 www.tounsm2025 co nz/2025-in-depth/tounsm-2025- strategic-themes/enhance-the-total-visitor-expenence Rader, R, Edwards, E., Westcott, D A., Cunningham, S A, (accessed 21 July 2014). Howlett, B G 2013 Diurnal effectiveness of pollination by bees and flies in agncultural Brassica rapa Tourism Resource Consultants 2009 The New Zealand Implications for ecosystem resilience Basic and Applied cycleway market research Report prepared for the Ecology 14(1) 20-27 Ministry of Tourism Tourism Resource Consultants, Wellington. Rader, R, Howlett, B. G, Cunningham, S. A, Westcott, D. A., Edwards, W. 2012 Spatial and temporal variation in Unwin, M J., Lamed, S 2013 Statistical models, pollinator effectiveness Do unmanaged insects provide indicators and trend analyses for reporting national- consistent pollination services to mass flowering crops'? scale river water quality (NEMAR Phase 3) NIWA Journal ofApplied Ecology 49(1) 126-134. client report CHC2013-033 prepared for the Ministry for the Environment, Wellington. 71 p www.mfe govt Rader, Howlett, B. G, Cunningham, S. A.; Westcott, R; nz/publications/ser/statistical-models-indicators-trend- A., Newstrom-Lloyd, L. E.; Walker, M. K, Teulon, D D analysts-reporting-national-scale-nver-water-quality pdf A. J., Edwards, W. 2009• Alternative pollinator taxa are (accessed 29 May 2014) equally efficient but not as effective as the honeybee in a mass flowering crop. Journal ofApplied Ecology 46(5): Unwm, M.; Snelder, T., Booker, D.; Ballantine, D; Lessard, 1080-1087. J. 2010. Modelling water quality in New Zealand rivers from catchment-scale physical, hydrological and land Rowe, D.K, Dean, T.L 1998 Effects of turbidity on the cover descriptors using random forest models. NIWA feeding ability of the juvenile migrant stage of six New client report CHC2010-037• Prepared for the Muustry for Zealand freshwater fish species New Zealand Journal of the Environment, Wellington. 52 p. Marine and Freshwater Research, 32(1} 21-29. van den Belt M.; and Cole A. 2014: Ecosystem goods Roy Morgan Research 2012• National Trend of New and services in marine protected areas (MPAs). Science Zealanders Unpublished report prepared for the for Conservation 326, p.1, Department of Conservation, Department of Conservation by Roy Morgan Research, Wellington Auckland. P.156. 136 Department of Conservation Annual Report for the year ended 30 June 2014 0 0 0 0 0 Form 8868 Application for Extension of Time To File an Exempt Organization Return (Rev January 2014) I OMB No 1545-1709 Department of the Treasury ► File a separate application for each return Informati on ab out F or m 8868 and its in st ructi ons is at www.irs.gov/form8868. Internal Revenue Service ► • If you are filing for an Automatic 3-Month Extension , complete only Part I and check this box , , , , , , ► X • If you are filing for an Additional ( Not Automatic ) 3-Month Extension , complete only Part II (on page 2 of this form) Do not complete PartIl unless you have already been granted an automatic 3-month extension on a previously filed Form 8868 Electronic filing (e-fife). You can eiectromcatiy file Form 8868 if you need a 3-month automatic extension of time to file (6 months for a corporation required to file Form 990-T), or an additional (not automatic) 3-month extension of time. You can electronically file Form 8868 to request an extension of time to file any of the forms listed in Part I or Part II with the exception of Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, which must be sent to the IRS in paper format (see instructions) For more details on the electronic filing of this form, visit www irs.gov/eftle and click on a-file for Charities & Nonprofits. Automatic 3-Month Extension of Time. Only submit original (no copies needed). 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Application Return Application Return Is For Code Is For Code Form 990 or Form 990-EZ 01 Form 990-T ( corporation ) 07 Form 990-BL 02 Form 1041-A 08 Form 4720 ( individual ) 03 Form 4720 (other than individual ) 09 Form 990-PF 04 Form 5227 10 Form 990-T ( sec 401 (a ) or 408( a ) trust) 05 Form 6069 11 Form 990-T ( trust other than above ) 06 Form 8870 12 • The books are in the care of DEBORAH RUTIGLIANO ► ------ 212 984-5700 FAX No. ___ __ Telephone No ► ► q • If the organization does not have an office or place of business in the United States , check this box , , , ,, , , , , , , , , , , ► • If this is for a Group Return , enter the organization's four digit Group Exemption Number (GEN) If this is q and attach for the whole group , check this box , . , , . , ► If it is for part of the group , check this box , , , , . . , ► a Itst with the names and EINs of all members the extension is for 1 I request an automatic 3- month ( 6 months for a corporation required to file Form 990-T) extension of time until 08 / 15, 20 14 , to file the exempt organization return for the organization named above The extension Is ------for the organization 's return for. q ► calendar year 20 13 or 1111'. tax year beginning ______, 20 and ending ..-___-______-__, 20 2 If the tax year entered in line 1 is for less than 12 months , check reason q Initial return q Final return Chan a in accountin g p eriod 3a If this application is for Form 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less any nonrefundable credits See instructions 3a $ 17 b If this application is for Form 990-PF, 990-T, 4720, or 6069, enter any refundable credits and estimated tax payments made. 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Only file the original (no copies needed). Enter filer' s identifyin g number, see instructions Name of exempt organization or other filer, see instructions Employer identification number (EIN) or Type or print I THE AOTEAROA FOUNDATION 20-1464742 Number, street , and room or suite no If a P 0 box, see instructions Social security number (SSN) File by the due date for C/O DEBORAH A. RUTIGLIANO, 101 PARK AVENUE fil i ng your City, town or post office , state, and ZIP code For a foreign address , see instructions. return See instructions NEW YORK, NY 10178 Enter the Return code for the return that this application is for (file a separate aoolication for each return) . I 014 1 Application Return Application Return Is For Code Is For Code Form 990 or Form 990-EZ 01 Form 990-BL 02 Form 1041-A 08 Form 4720 ( individual ) 03 Form 4720 ( other than individual ) 09 Form 990-PF 04 Form 5227 10 Form 990-T ( sec 401 ( a ) or 408(a ) trust ) 05 Form 6069 11 Form 990-T (trust other than above 06 Form 8870 12 STOPI Do not complete Part II if you were not already granted an automatic 3-month extension on a previously filed Form 8868. • The books are in the care of ► pFROPAH R11TT(1 TANG, 1 01 PARK AVFNf1F. 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E:T Initial return Final return q Change in accounting period 7 State in detail why you need the extension ALL OF THE INFORMATION REQUIRED TO FILE A COMPLETE AND ACCURATE RETURN IS NOT YET AVAILABLE. 8a If this application is for Forms 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less any nonrefundable credits See instructions 8a $ 171, 000. b If this application is for Forms 990-PF, 990-T, 4720, or 6069, enter any refundable credits and estimated tax payments made. Include any prior year overpayment allowed as a credit and any amount paid previously with Form 8868 8b $ 171, 000. c Balance Due. Subtract line 8b from line 8a Include your payment with this form, if required, by using EFTPS (Electronic Federal Tax Payment System) See instructions 8c $ 0 Signature and Verification must be completed for Part II only. Under penalties of perjury, I declare that I have examined this form, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete, and that I am authorized to prepare this form. Title Date Signature ► ► ► Form 8868 (Rev 1-2014) JSA 3F8055 2 000 1762CE 3846 A56703 Anchin, Block & Anchin LLP Accountants & Advisors 1375 Broadway New York, NY 10018 212 840-3456 I- 1N'L1 IIfN www anchin com INSTRUCTIONS FOR FILING THE AOTEAROA FOUNDATION NY FORM 500 NEW YORK 500 - ANNUAL FILING FOR CHARITABLE ORG. FOR THE PERIOD ENDED DECEMBER 31, 2013 ************************* SIGNATURE... THE ORIGINAL RETURN SHOULD BE DATED AND SIGNED BY ONE TRUSTEE OF ORGANIZATION. FILING... THE SIGNED RETURN SHOULD BE FILED ON OR BEFORE NOVEMBER 15, 2014 WITH... NYS DEPARTMENT OF LAW (OFFICE OF THE ATTORNEY GENERAL) CHARITIES BUREAU - REGISTRATION SECTION 120 BROADWAY NEW YORK, NEW YORK 10271 A FILING FEE OF $750. MUST BE SUBMITTED WITH THE REPORT PAYABLE TO THE NYS DEPARTMENT OF LAW. PLEASE ALSO SIGN AND DATE THE COPY OF THE FORM 990-PF FILED WITH THIS RETURN. XL138 5 000 • • Send with fee and attachments to C HAR50 0 NYS Office of the Attorney General 2013 Charities Bureau Registration Section Open to Public NYS Annual Filing for Charitable Organizations 120 Broadway inspection www.CharitiesNYS.com New York, NY 10271 For Fiscal Year Be g innin g ( mm/dd / ) / / 2013 and Endin g ( mm/dd/yyyy) Ch eck if Applicable Name of Organization THE AOTEAROA FOUNDATION Employer Identification Number (EIN) Address Change 20-1464742 Name Change Mailing Address NY Registration Number Initial Filing C/O DEBORAH A. RUTIGLIANO, 101 PARK 20-75-42 Final Filing City / State / Zip Telephone Amended Filing NEW YORK,NY, 10178 (212) 984-5700 Reg ID Pending W ebsite Email N/A Check your organization ' s Find your registration category in the registration category q 7A only q EPTL only q DUAL (7A & EPTL) q EXEMPT Ch ari t ies R egis try at www Ch ant ies NYS corn See instructions for certification requirements Improper certification is a violation of law that may be subject to penalties We certify under penalties of perjury that we reviewed this report, including all attachments, and to the best of our knowledge and belief, they are true, correct and complete in accordance with the laws of the State of New York applicable to this report President or Authorized Officer Signature Title Date TRUST - ONE SIGNATURE REQUIRED Chief Financial Officer or Treasurer Signature Title Date Check the exemption ( s) that apply to your filing If your organization is claiming an exemption under the category (7A and EPTL only filers) or both categories (DUAL filers ) that apply to your registration , complete only parts 1 , 2, and 3, and submit the certified Char500 No fee, schedules, or additional attachments are required If you cannot claim an exemption or are a DUAL filer that claims only one exemption , you must file applicable schedules and attachments and pay applicable fees q 3a. 7A filing exemption Total contributions from NY State including residents , foundations , government agencies , etc did not exceed $25,000 and the organization did not engage a professional fund raiser (PFR) or fund raising counsel (FRC) to solicit contributions during the fiscal year Or the organization qualifies for another 7A exemption ( see instructions) q 3b. EPTL filing exemption Gross receipts did not exceed $ 25,000 and the market value of assets did not exceed $25 , 000 at any time during the fiscal year See the following page 4a Did your organization use a professional fund raiser, fund raising counsel or commercial co-venture for a checklist of q Yes q No for fund raising activity in NY State'? If yes, complete Schedule 4a schedules and attachments Yes q No 4b Did the organization receive government grants? If yes, complete Schedule 4b completemplete yourr filing E] See the checklist on the 7A filing fee EPTL filing fee Total fee next page to calculate your Make a single check or money order payable to fee(s). Indicate fee(s) you $ $ 750. $ 750. are submitting here " Department of Law " CHAR500 Annual Filing for Charitable Organizations (Updated June 2014) Page 1 3J3550 11001) 1762CE 3846 A56703 Simply submit the certified CHAR500 with no fee, schedule, or additional attachments IF C HAR50 0 - Your organization is registered as 7A only and you marked the 7A filing exemption in Part 3 Your organization is registered as EPTL only and you marked the EPTL filing exemption in Part 3 Annual Filing Checklist - Your organization is registered as DUAL and you marked both the 7A and EPTL filing exemption in Part 3 Check the schedules you must submit with your CHAR500 as described in Part 4 q If you answered "yes" in Part 4a, submit Schedule 4a Professional Fund Raisers (PFR), Fund Rmsing r oLinsei (F C) Cc mer ;Coa! lacntL;;ers 'CC , submit Schedule 4b Government Grants F-1 If you answered "yes" in Part 4b, Check the financial attachments you must submit with your CHAR500 IRS Form 990, 990-EZ, or 990-PF, and 990-T if applicable q All additional IRS Form 990 Schedules including Schedule B (Schedule of Contributors) q IRS Form 990-T if applicable If you are a 7A only or DUAL filer, submit the applicable independent Certified Public Accountant's Review or Audit Report q Review Report if you received total revenue and support greater than $250,000 and up to $500,000 q Audit Report if you received total revenue and support greater than $500,000 q No Review Report or Audit Report is required because total revenue and support is less than $250,000 Note The Audit and Review requirements are set to change in 2017 and 2021 in accordance with the Non Profit Revitalization Act of 2013 For more details , visit www ChantiesNYS corn For 7A and DUAL filers, calculate the 7A fee Is my organization a 7A, EPTL or DUAL filer? 7A filers are registered to solicit contributions in New York q $0, if you marked the 7A exemption in Part 3a under Article 7-A of the Executive Law ("7A") EPTL filers are registered under the Estates, Powers & Trusts q $25, if you did not mark the 7A exemption in Part 3a Law ("EPTL") because they hold assets and/or conduct For EPTL and DUAL filers, calculate the EPTL fee activites for charitable purposes in NY DUAL filers are registered under both 7A and EPTL q $0, if you marked the EPTL exemption in Part 3b Check your registration category and learn more about NY q $25, if the NET WORTH is less than $50,000 law at www CharitiesNYS com q $50, if the NET WORTH is $50,000 or more but less than $250,000 Where do 1 find my organization's NET WORTH? NET WORTH for fee purposes is calculated on q $100, if the NET WORTH is $250, 000 or more but less than $1,000,000 IRS From 990 Part I, line 22 IRS Form 990 EZ Part I line 21 q $250, if the NET WORTH is $1 ,000,000 or more but less than $10, 000,000 IRS Form 990 PF, calculate the difference between Total Assets at Fair Market Value (Part II, line 16(c)) and $750, if the NET WORTH is $10,000 , 000 or more but less than $50,000,000 Total Liabilities (Part II, line 23(b)) q $1500, if the NET WORTH is $50,000, 000 or more Send your CHAR500, all schedules and attachments , and total fee to NYS Office of the Attorney General Charities Bureau Registration Section 120 Broadway New York , NY 10271 CHAR500 Annual Filing for Charitable Organizations (Updated June 2014) Page 2 3J3551 1 000 1762CE 3846 A56703 Roberta Devarez From: Ins M Bonilla [Ins oonillaaag.ny.gov] on behalf of Chanties Extensions [Chanties. Extensionsf@ag ny.gov] Sent: Monday. May 12.2014 4,27 PM Tn. Rober!a De:'arez Subject: RE: 180. The Aotearoa Foundation . NYS Reg No 20-75-42. EIN 20.1464,742 - Request for additional time to file Your extension request has been received. Effective March 17, 2014, the Charities Bureau has changed the extension request policy to accept requests electronically by email only, no IRS Form 8868 or hardcopy is required. Furthermore, the Charities Bureau will now accept email requests for a full 180 day extension term. Please review the new extension request instructions posted online. Please note that extension requests submitted in accordance with the guidelines and received by the Charities Bureau are considered granted. You will receive notification under separate cover only if your request for an extension is denied. Extension requests will no longer be posted in the Charities Bureau's Registry. If you have any questions regarding the extension process, please email the Charities Bureau at Charities.Bureau@ae,ny.gov or call the Attorney General's Helpline at 1- 800-771-7755. Thank you, Charities Bureau File Online: Visit Form990.org to learn how to file your IRS Form 990 and New York Form CHARS00 together electronically From: Roberta Devarez [mailto:Roberta,Devarez,aanchin,com j Sent: Monday, May 12, 2014 3:29 PM To: Chanbes Extensions Subject: 180, The Aotearoa Foundabon, NYS Reg No. 20-75-42, EIN: 20-1464742 - Request for additional time to file Importance: High The Aotearoa Foundation c/o Deborah Rutigliano, 101 Park Ave New York, NY 10178 EIN• 20-1464742 • t May 12, 2014 Dear Sir/Madam- The Aotearoa Foundation respectfully requests an additional extension of time until December 31, 2014 to file its Annual Filing of Charitable Organization, Form CHAR 500 for the fiscal year ended December 31, 2013. Please be advised that The Aotearoa Foundation is unable to obtain all the necessary information to complete and file an accurate annual report at this time. Anchin, Block & Anchin LLP 1375 Broadway New York, NY 10018 Tel: 212-840-3456 Fax: 212-840-7066 Roberta Devarez Tax Supervisor Anchor, Block & Anchin LLP Accountants and Advisors 8 VC", ?WNafChi corn rob; I\(JIII\ $#xr,•#xk###XgkX£#$#X####K$#i^t# ic###^k#ic $KX#X##X##X##X%k#K>x^:#########$#$##x This email is intended only for the use of'the indAideal or entit' to i+hich it is addressed and may contain information that is privileged. confidential and exempt from disclosure undei applicable law. 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