CHAIRMAN'S 05 REPORT 10 F E E S & Building the 06 07 ATTENDANCE INTRODUCTION TRUSTEES Hauraki nation, 10 STRATEGY IWI REGISTER 12 & PLANNING together! 13 14 24 ASSETS INTERACTIONS FINANCIALS
- IWI, MARAE,MATAURANGA EDUCATION & SPORTS 48 16 GRANTS SCORECARD Ngā Puke ki Hauraki ka tarehu Nga mihinui Kia koutou i tenei wa As other opportunities come our way in E mihi ana ki te whenua aquaculture and fin fish farming we look forward On behalf of the Trustees of the Pare Hauraki to working alongside the company to realise the E tangi ana ki te tangata Fishing Trust I am pleased to present this Annual potential of those opportunities and to enable Report for 1st October 2017 to 30th September further economic growth and opportunities for E ngā mana, e ngā Iwi, 2018. business and employment for our people in the future. E ngā uri o ngā Iwi o Hauraki The Trust’s fundamental function is to provide the Iwi, Marae Development, Education, Mātauranga Because of the strength of our collective fisheries Tēnā koutou, tēnā koutou, (Culture & Arts) and Sports grants on an annual assets we are having a strong influence in basis. This has been a very good way to assist our aquaculture and fisheries development across our Tēnā tātou katoa. people of Ngā Iwi o Hauraki and our many Marae. rohe and the country.
Our Annual Report identifies where those grants As we need necessary infrastructure to support were allocated and their purpose and it will be our growth we are also engaging strongly great to hear from some of those recipients at our with Local and Central Government to work Annual General Meeting as we have heard from collaboratively to secure resource, particularly other recipients in previous years. with the Provincial Growth Fund to plan and prepare for that infrastructure requirement. I would take this opportunity to thank the Hauraki Although this is been driven principally by Pare Māori Trust Board who provide the administration, Hauraki Kaimoana it is important that the Trust is financial services and management support advocating at the political level. services required to run the Trust and assess and process all the grant applications submitted. I would like to acknowledge all the Trustees for their commitment to the Pare Hauraki Fishing Included in our AGM is also the Annual Report Trust and their ability to strategically think and and Annual Plan of Pare Hauraki Kaimoana which challenge where it is required to ensure we are is the trading name of our Pare Hauraki Asset achieving progress with the asset that belongs to Holdings Company. I would like to acknowledge 4 us all collectively. and thank the Directors of Pare Hauraki Kaimoana 5 and in particular acknowledge Mr Harry Mikaere Therefore the Trustees commend this Annual as Chairman of Pare Hauraki Kaimoana and the Report for your review and receipt as it provides a support provided to them by Mr Stephen Hand as good overview for our member’s information. manager of the Company. Ngā mihi The company continues to develop our asset base
and considering it has only been a short time REPORT since we have received those assets after other external Iwi holding us up for many years, our Trustees are pleased with their ongoing progress David Taipari CHAIRMAN'S and their diversification of investments. Chairman The Pare Hauraki Fishing Trust (the Trust) is the Joint Mandated Iwi Organisation (JMIO) representing the Iwi of Hauraki for the purposes of the Māori Fisheries Act 2004 and the Māori Commercial Aquaculture Claims Settlement Act 2004. The Hauraki Māori Trust Board is the trustee of the JMIO. ANNUAL PLAN SCORECARD
The Trust exercises strategic governance over Pare Hauraki Asset Holdings Limited (PHAHL), an Asset OF PERFORMANCE 2017- 2018 Holding Company which was set up to commercially manage and grow the fisheries, aquaculture and The scorecard against the Annual Plan ended 30 September 2018 is set out at the end of this report. other assets of the Iwi of Hauraki and to provide a dividend back to the shareholder, which is the Trust. Pare Hauraki Asset Holdings Limited (PHAHL) is now known as Pare Hauraki Kaimoana (PHK) and comprises both Pare Hauraki Asset Holdings Limited and the Hauraki Fishing Group Trust.
The Trust is required to provide an Annual Report to Iwi members which must comply with the reporting BOARD OF TRUSTEES requirements of the constitution of the Trust and the Māori Fisheries Act 2004. The Hauraki Māori Trust Board is the corporate trustee of the Trust. The HMTB as corporate Trustee is comprised of the following Trustees: The Trust’s annual reporting responsibilities are outlined in Kaupapa 7 of Schedule 11 of the Māori Fisheries Act 2004 and mirrored in its Trust Deed. Briefly, the Trust is required to report: The new Board of Trustees were appointed in May 2018 as a result of the three yearly elections.
Its performance and that of the Company or Information on the steps taken to increase any other entities that conduct business using registered members; Hauraki settlement assets; DAVID TAIPARI
Ngāti Maru, Chairman
Comparison of its performance against Information on sales and exchanges of the objectives in the annual plan, including settlement quota including quantity and value changes in shareholder or member value and of the settlement quota sold or exchanged and dividend performance or profit distribution; the identity of the purchaser;
PINE HARRISON 6 7 Any transaction with settlement quota that The settlement quota interests that Ngāti Porou ki Harataunga ki Mataora, has resulted in a registered interest by way have been registered against the quota Deputy Chairman of caveat or mortgage being placed over the shares of the mandated Iwi organisation; quota;
The value of income shares sold, exchanged or Interactions in fisheries matters; acquired;
JOHN LINSTEAD TRUSTEES
Ngāti Hako A comparison of its performance against the Any changes in shareholder or member value; objectives in the annual plan; and Report on dividend, performance and or INTRODUCTION profit distribution. STEPHEN ZISTER ARAMA CHASE
Ngāi Tai Ngāti Tamaterā
HARRY MIKAERE MILLIE BERRYMAN
Ngāti Pūkenga ki Waiau Ngāti Paoa
WIREMU PETERS JOE DAVIS
Patukirikiri Ngāti Hei
8 HONEY RENATA DANIEL BRAID 9
Ngaati Whanaunga Ngāti Rāhiri-Tumutumu TRUSTEES TRUSTEES SONNY TE KARU
Ngāti Tara Tokanui TRUSTEES ATTENDANCE AND FEES
A total of seven (7) Board meetings were held this year including six (6) ordinary meetings and one (1) Annual General Meeting. Develop all ATTENDANCE FEES David Taipari 7 14,097 Pine Harrison 7 9,212 transferred water Sonny Te Karu 6 7,529 Joe Davis 5 7,529 Harry Mikaere 7 7,529 Wiremu Peters 5 7,529 space assets Honey Renata 7 7,529 John Linstead 4 7,529 Stephen Zister 5 7,529 Arama Chase 5 7,529 Millie Berryman 3 7,529 Mapuna Turner 4 (part year) 4,880 Daniel Braid 2 ( part year) 2,649 TOTAL 98,599
R E G I S T E R OF MEMBERS
10 OF HAURAKI IWI 11
As at 30 September 2018 the tribal register stands at TRIBAL 7,967 validated members of which 7,807 members are aged 18 years and over. Regular reviews of the tribal REGISTER register were undertaken to ensure that the register was up to date and as accurate as possible especially 7,967 given it was an election year for the Trustees of the Corporate Trustee.
New Iwi members are added on a monthly basis and this is an ongoing process. When verifiable information is provided concerning deceased members,
IWI REGISTER IWI they are removed from the register. STRATEGY AND PLANNING FISHERIES SETTLEMENT ASSETS
The following key strategic documents exist between the Trust and Pare Hauraki Kaimoana (Pare Annual Catch Entitlement (ACE) is available each year from the fishing quota. PHAHL has in place Hauraki Asset Holding Limited – PHK): an existing ACE agreement with Aotearoa Fisheries Limited (“Moana”) for a term of three years to September 2020 and it also has an existing agreement with Pelco NZ Limited for pelagic species, • Statement of Investment Strategy and Policy 2018 to ensure it gains the best value for the ACE. • Pare Hauraki Kaimoana Annual Plan 2019 Sealord was able to continue catching the current deep water ACE leased to it. On 30 September 2017 the Trust successfully obtained registration with the Charities Commission (previously a Māori Authority for taxation purposes) and whilst it operates out of Paeroa, New There was no reorganisation of fishing settlement quota during this reporting period. Zealand, it serves Hauraki Iwi throughout New Zealand. The Trust is a “Not for Profit” Trust whose primary purpose is to advance every charitable purpose benefitting Hauraki Iwi. As such As part of our commercial arrangements with Aotearoa Fisheries Limited (AFL) we operate a its principle activity is the distribution of grant funding which advances charitable purposes Pataka Kai scheme which gives access to our whanau and marae to obtain fish for tangihana and benefitting the Hauraki Iwi. in this period we accessed 800kg of fish, The amount available for a tangi in our tribal rohe is up to 20kgs. The HMTB office in Paeroa is the contact point for Pataka Kai. ASSET HOLDING COMPANY AQUACULTURE SETTLEMENT ASSETS The Trust established Pare Hauraki Asset Holdings Limited (PHAHL) on 30 September 2009 to receive the settlement assets and manage these on a commercial basis. This is a standard As noted last year Pare Hauraki Kiamoana (PHK) lodged a tender for finfish farming in the 240 commercial company and is a Māori Authority in respect of income tax, with tax being charged at hectare marine farming zone, 10km offshore of Coromandel, set aside for finfish. It won the tender 17.5%. and is now investigating options for the development of finfish farming.
The three directors of the company are Harry Mikaere (Chairman), Paul Majurey and Andrew With the passing of the Auckland Unitary Plan PHK via the Western Firth Consortium has Harrison as an independent director. reactivated a consent application for 474 hectares of waterspace for mussels. PHK has a 26% interest in this application which is situated 5-7 kms offshore of the western coast of the Firth of No further Asset Holding Companies have been established by the Trust and no subsidiaries Thames. Regulatory authorities continue to process this application and a decision is expected in formed by PHAHL. 2019.
In 2016 PHAHL purchased all the fishing and aquaculture assets of Hauraki Fishing Group and PHK is continuing to lease its waterspace under long term leases with a minimum quaranteed Tai Moana Marine Farms Limited and consolidated these with its own assets to form a single return and a gain share component as follows: operating entity now known as Pare Hauraki Kaimoana. • Wilson A Farms ( 184 hectares) -134 hectares leased to Gulf Mussels with the 50 12 The current marine farms water space owned by the PHAHL continue to be leased out under hectares purchased from Cedenco in 2016 leased back to Cedenco and through them 13 long term leases with a lease rental based on a percentage of revenue but with a guaranteed to the Cedenco/Sanford subsidiary North Island Mussels Limited, NIML. minimum based on the value of the water space. During the year the company sold all Coromandel and Aotea marine farming lines and equipment and realised a gain on the sale of this plant and • Wilson B waterspace (104 hectares) resource consent was approved in May 2017 equipment which is disclosed in Note 18 to the Financial Statements. and it was leased to Cedenco who developed 24 hectares. The Company is investigating development options for the remaining 80 hectares. The Asset Holding Company has high quality investments in four Limited Partnerships and in shares which are described in the Notes to the Financial Statements. ASSETS In this reporting period Pare Hauraki Kaimoana made payments to its shareholders (Pare Hauraki
STRATEGY STRATEGY Fishing Trust) and the related entity of Hauraki Fishing Group Trust which represents a total annual dividend of $1,400,000 enabling the Trust to make grants as set out in this report. CHANGES TO CONSTITUTIONAL DOCUMENTS
No amendments and no proposals for amendments are being sought to the Trust Deed of the PHFT. In addition, no changes to the Company constitution have been made during this period. Create wealth Changes to the constitutional documents of the Trust may only be promoted if Iwi members resolve at a general meeting that the change is for the collective benefit of all members of the Iwi. The process for changing constitutional documents is set out in the Trust Deed and Constitution of the Company. f r o m a d i v e r s i fi e d
The PHFT Trust Deed and the PHAHL constitution are available for viewing from the Board’s website www.hauraki.iwi.nz. investment TRUST INTERACTIONS With other entities within the Hauraki Iwi portfolio The Trust has interacted with the twelve Iwi and many of the Hauraki marae in its programme of grant distributions and Pataka Kai as well as consulting on the Western Firth new water space application.
With Hauraki Māori Trust Board The Hauraki Māori Trust Board has provided management, administrative and accounting services to the Trust to enable distributions for Iwi, marae development, mātauranga (culture & arts), sports and educational grants. It has also provided Iwi registration services.
With other Mandated Iwi Organisations The Trust has maintained relationships with other Iwi to further the transfer and implementation of coastline and regional agreements already made as well as securing wild spat sources.
With Te Ohu Kaimoana Trustee The Trust has interacted with Te Ohu Kaimoana on the allocation of fishing and aquaculture settlement assets to Hauraki and participated in strategic discussions initiated by Te Ohu 14 15 Kaimoana on wider fishing and aquaculture issues impacting on Iwi. Representatives have also attended Special General Meetings and the Annual General Meeting of Te Ohu Kaimoana.
With Others PHK have also maintained representation to both the industry body in the Tikapa Moana region and to the Board of the national aquaculture organisation to resolve issues affecting the entire industry. PHK has participated in the Waikato Regional Council Aquaculture Forum and in the review of the Waikato Regional Council Coastal Plan.
PHK maintains business relationships with its investment portfolio managers and property companies and along with the Trust also other strategic partners, who may provide opportunities for diversified investment and good commercial rates of return, for example, Te Tumu Paeroa - The Māori Trustee, to acquire land at Whenuapai, Auckland and to construct 49 houses and lease them to the NZ Defence Force which was completed during the year and with Ockham Residential INTERACTIONS to invest in the Tuatahi Project, a 110 unit staged development in Mt Albert which is expected to be completed in 2019. The Trust continues to develop relationships with overseas investors and companies for long term strategic benefit. MĀTAURANGA GRANTS Building the (CULTURE AND ARTS) 2017- 2018 Hauraki The Trust approved $35,000.00 for cultural purposes. Hauraki Cultural Festival Committee Hauraki Kaumatua Kaunihera nation, Hauraki Cultural Festival, Manaia Kaumatua Wānanga and General, Hauraki Hiwa Majurey Mason Whiu together! Dance Competitions, Arizona, USA Kapa Haka Competitions, New Zealand Colleen Renata Te Whare Tāhuhu Kōrero o Hauraki Harakeke Raranga Wānanga and Film, Paeroa Te Reo and Tikanga Wānanga hui, Hauraki
Herearoha Skipper Te Orokohanga o Nga Korari Te Reo Wānanga Hui, Hauraki Waiata and Tikanga Wānanga Hui, Hauraki IWI GRANTS 2017- 2018
The Trust approved Iwi grants to the twelve Iwi of Hauraki of $30,000 each to a total of $360,000. Tristan Fisher James McCaskill Short Film Finalist Awards, San Diego, USA Theatre Performance, Edinburgh
Hauraki Māori Women's Welfare League Reupene Renata 16 MARAE DEVELOPMENT GRANTS MWWL Conference, Gisborne Cultural Exchange, Japan 17 2017-2018
Each year the Trust sets aside a sum of $100,000 for Marae development. This year three Hauraki Maire Taanetinorau-Searancke Hiriwa-Haki Johnson Marae were approved Marae Development Grants during this period. They were: Cultural Exchange, Japan Cultural Exchange, Japan
Te Kotahitanga Marae at Tirohia Upgrade kitchen GRANTS Aroha Wiperi GRANTS Cultural Exchange, China Ko Te Ra Matiti Marae at Wharekaho, Whitianga Roof replacement, kitchen and ablution upgrade
Manaia Marae Committee at Manaia Upgrade kitchen EDUCATION GRANTS 2017 - 2018 Grants totalling $100,000.00 were approved to 59 students who affiliate to one or more of the Hauraki tribes and who are attending part and full time courses at universities, institutes, polytechnics or wānanga.
Monique Albert Te Awhi Allen-Davis Jacqueline Godfery Samantha Grace Ngāti Maru Ngāti Hei, Ngaati Whanaunga Ngāti Maru Ngāti Maru Bachelor of Sport and Exercise Science Bachelor of Retail and Business Management Certificate in Literature and Library Services Bachelor of Medicine and Bachelor of Surgery
Te Wai Barbarich Dennam Beckett Morgan Henare Tia Vaine Herekiuha Ngāti Paoa Ngāti Maru Ngāti Porou ki Harataunga ki Mataora Ngāti Tamaterā, Ngāti Tara Tokanui Master of Philosophy Diploma of Software Development Bachelor of Arts Postgraduate Diploma of Science
Alexander Buckton-Wishart Chantel Burgess Kia Houpapa Samantha Johnstone Ngāti Maru Ngāti Porou ki Harataunga ki Mataora Ngāti Maru, Ngāti Pukenga ki Waiau Ngāti Maru Bachelor of Engineering (Mechatronics) Bachelor of Arts Master of Business Administration Bachelor of Arts
Tamzen Bush Edmond Carrucan Kaharau Keogh Te Rina Keogh Ngāti Tamaterā Ngāti Hako Ngāti Tara Tokanui Ngāti Tara Tokanui Bachelor of Social Sciences Bachelor of Laws with Honours Graduate Diploma of Teaching Bachelor of Commerce
Hayley Cox Tania Doherty-McNab Keriata Kuiti Karlene Mackey Ngāti Tamaterā Ngāti Tamaterā Ngāti Tamaterā Ngāti Hako Bachelor of Science Bachelor of Applied Social Work Masters of Educational Leadership Postgraduate Diploma in Education
Arawa Elkington Wineera Elkington Chevvy Mastny-Jensen Rangituia McRae Ngāti Tamaterā Ngāti Maru 18 Ngāti Maru Ngāti Maru 19 Bachelor in Facilities Management Bachelor in Exercise Science Bachelor of Dental Surgery Te Rangakura (Teaching)
Kristie Elphick Dahnica Fisher Natalie Mirams Cassandra Moar Ngāti Rahiri-Tumutumu Ngāti Maru Ngāti Hako, Ngāti Paoa Ngāti Rahiri-Tumutumu Masters in Business NZ Diploma in Tourism and Travel Bachelor of Laws and Bachelor of Arts Bachelor of Nursing GRANTS Sophie Ford Anaru Fraser Mia Morgan Paul Munro GRANTS Ngāti Tamaterā Ngāti Paoa, Ngāti Tara Tokanui Ngāti Tamaterā Ngaati Whanaunga Bachelor of Laws Doctor of Philosophy Bachelor of Environmental Management Master of Laws
Moe-Moana Fraser Kataraina Godfery Cameron Munro Antoinette Murphy Ngāti Hako Ngāti Maru Ngaati Whanaunga Ngāti Rahiri-Tumutumu Poutuarongo Whakaakoranga Te Rangakura Masters in Professional Economics Postgraduate Diploma of Biodmedical Science Bachelor of Nursing Brooke Nicholls Natarsha O'Hara Leah Warbrick Janay Wilson Ngāti Tamatera Ngāti Maru Ngāti Maru Ngāti Tara Tokanui Bachelor of Science/Arts Bachelor of Teaching Kaitiakitanga Putaiao/Toi Whakarakai Bachelor of Nursing
Te Miringa O'Sullivan Te Ariki Te Keu Paitai Simeon Wilson Ngāti Maru Ngāti Porou ki Harataunga ki Mataora Ngāti Tara Tokanui Bachelor in Health Science Bachelor Business majoring Accounting Bachelor of Oral Health
Kaihau Potiki Tauke Paitai Brayden Palethorpe Ngāti Porou ki Harataunga ki Mataora Ngāti Maru Bachelor of Art Te Reo Māori/Political Bachelor of Law Science/Int'l Relations SPORTS GRANTS 2017 - 2018 Kaysia Te Raamona Dehar Paul Ashlee Marie Rimmer Grants totalling $19,500 were approved for payment to sports people who affiliate to one Ngāti Tamaterā Ngāti Hako or more of the Hauraki Iwi. The recipients were: Bachelor of Law Bachelor of Business
Sierra Rissetto Alexander Ross Basketball Basketball Ngāti Paoa Ngāti Hako Tayla Taupaki Ngāti Hako Sienna Taikato, Ngāti Hako Bachelor of Business Analysis Diploma in Web Development and Design NZ Koru Development Tour, U16 Australia NZ Koru Development Tour, U16 Australia
Marcel Stephenson-Croul Courtney Sullivan Basketball Basketball Ngāti Paoa Ngāti Maru Carsen Hirawani, Ngāti Hako Josey Hansen, Ngāti Tamaterā Diploma in Film Making Bachelor of Medicine and Bachelor of Surgery NZ Koru Development Tour, U14 Australia NZ Koru Development Tour, U14 Australia
Kakara Tangatatai Pianika Taylor Basketball Basketball Ngāti Tamaterā Ngāti Paoa Janine Watene, Ngāti Maru Asher Wirihana, Ngāti Hako Masters in Education Bachelor of Health Sciences NZ Māori Basketball Tournament, Rotorua NZ Māori Basketball Tournament, U11 Rotorua
20 21 Frances Teinakore-Curtis Anahera Teinakore-Curtis Basketball Basketball Ngāti Paoa, Ngāti Maru, Ngāti Tamaterā Ngāti Paoa, Ngāti Tamaterā Harosson McTaggart, Ngāti Hako Livi Hirawani, Ngāti Hako PHD Environmental Studies Bachelor of Arts NZ Māori Basketball Tournament, U13 Rotorua NZ Māori Basketball Tournament, U17 Rotorua
Hune Tuatara Karamea Tukukino Basketball Basketball Ngaati Whanaunga Ngāti Tamaterā, Ngāti Maru Bishop Walker, Ngāti Maru Waimanu Clarken, Ngai Tai GRANTS Bachelor of Arts, Bachelor of Science Masters of Indigenous Studies Franklin Boys Basketball, U16 Australia Representitive Programme, U15 Auckland GRANTS
Seattle Tupuhi Ethan Wells Basketball Frisbee Ngāti Paoa Ngāti Porou ki Harataunga ki Mataora Johnson Mendoza, Ngāti Hako Takimoana Morehu-Cookson, Ngāti Maru Bachelor of Computer Science and Bachelor of Medicine and Bachelor of Surgery NZ Basketball Tournment, Rotorua Ultimate Frisbee Championship,Mixed USA Mathematics (Hons) Netball Hockey Hauraki Plains College A Team Paulette Reidy-Davis, Ngāti Tamaterā Ngāti Hako, Ngāti Paoa, Ngāti Pukenga ki Waiau Int. Masters Hockey World Cup, Spain Secondary Schools Netball Tournament, Mount Maunganui FINANCIAL Netball Netball Tayla Earle, Ngāti Paoa Nazea Silbery, Ngāti Paoa Secondary Schools Netball Championships, NZ Men's National Netball Tournament, Australia Wellington STATEMENTS Rugby League Softball Watene ki Hauraki Team Horowai Puketapu, Ngāti Tamaterā Ngāti Maru NZ Softball Championships, U23 Wellington 2017- 2018 Softball Taekwondo Briar Takairangi , Ngāti Maru Cole Krech-Watene, Ngāti Maru Int. Softball Academy Tournament, U15 Oceania Championships, Tahiti Australia
Taekwondo Tag Football Max Watene, Ngāti Maru Darrio Penetito-Hemara , Ngāti Tamaterā Oceania Championships, Tahiti World Cup 2018, Australia
Touch Rugby Paeroa College Senior Mixed Team Touch Rugby Ngāti Hāko, Tara Tokanui, Ngāti Porou ki Sarah-Leigh Pamatatau, Ngāti Paoa Harataunga ki Mataora, Ngāti Tamaterā Mixed Touch,Girl's U18 & U21, Auckland NZSS Touch Nationals, Auckland
Touch Rugby Touch Rugby Chase Pamatatau, Ngāti Paoa Terewai Majurey, Ngāti Maru Mixed Touch,Boy's U18 & U21, Auckland Mixed Touch Team,U16, Australia 22 23
Touch Rugby Waka Ama Izaiah Radovanovich, Ngāti Hei Shannon Hughes, Ngāti Paoa Youth World Cup,Men's U20, Malaysia World Sprints,Men's U19, Tahiti
Wrestling Volley Ball
GRANTS Westerley Ainsley, Ngāti Maru Daniel Onekawa-Emery, Ngāti Rahiri-Tumutumu Wrestling, South Olympics, Guam Dev. IPC Squad, U17 Volley Ball, Wellington
Water Polo Alamein Wanoa Watene, Ngāti Maru NZ U14 Waterpolo Tournament, Auckland
INDEPENDENT AUDITOR’S REPORT
To the Beneficiaries of Pare Haura ki Fishing Trust Group
Opinion Hamilton
We have audited the consolidated financial statements of Pare Hauraki Fishing Trust Group ('the Group') on 9 February 201
pages 27 to 47, which comprises the27 consolidated statement of financial position as at 30 September 2018,
and the consolidated statement of comprehensive income,Jefferies and Nock Associates Chartered Accountants consolidated statement of changes in equity,
consolidated statement of cash flows for the year then ended, and the statement of accounting policies and other explanatory information.
FINANCIAL STATEMENTS
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial 2017- 2018 position of the Group as at 30 September 2018, and its financial performance and its cash flows for the year
then ended in accordance with Public Benefit Entity International Public-Sector Accounting Standards
AUDIT REPORT 25 Reduced Disclosure Regime (‘PBE IPSAS - RDR). STATEMENT OF COMPREHENSIVE INCOME 27 Our report is made solely to the Trustees of Pare Hauraki Fishing Trust Group. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s 8/ - report -
STATEMENT OF CHANGES IN EQUITY 28 report and for no other purpose. responsibilities/audit To the fullest extent permitted by law, we do not accept or assume - practitioners/auditors - assurance - for - www.xrb.govt.nz/standards located at the XRB’s website at:
he auditor’s responsibilities for the audit of the financial statements is responsibility to anyone other than the Trustees ofA further description of t Pare Hauraki Fishing Trust Group, for our audit work, for STATEMENT OF FINANCIAL POSITION 29
our report or for the opinions we have formed.
financial statements. consolidated
STATEMENT OF CASHFLOWS 30
these of basis the on taken users of decisions the influence to expected be reasonably could they
can arise from fraud or error and are considered material if, individually or in the aggregate,
NOTES TO FINANCIAL STATEMENTS 31 Basis for opinion Misstatements
We conducted our audit in accordance with international Standards on Auditing (New Zealand) (ISAs(NZ)). audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.
Our responsibilities under those standards are further described in the auditor’s responsibilitiethat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an s for the audit
to issue an auditor’s report
of the Financial Statements section of our report. We are independent of Pare Hauraki Fishing Trust Group whole are free from material misstatement, whether due to fraud or error, and
financial statements as a consolidated
24 Our objectives are to obtain reasonable assurance about whether the 25
in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners
Responsibilities for the Audit of the Consolidated Financial Statements issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical Auditor’s
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
entity or to cease operations, or have no realistic alternative but to do so.
either intend to liquidate the e Trustees concern and using the going concern basis of accounting unless th
oncern, disclosing, as applicable, matters related to going
Other than in our capacity as auditor we have no relationship with, or interests in, Pare Hauraki Fishing Trust assessing the entity's ability to continue as a going c
are responsible on behalf of the entity for e Trustees financial statements, th consolidated
Group. In preparing the
nancial statements that are free from material misstatement, whether due to fraud or error.
fi
FINANCIAL FINANCIAL
and for such internal control as the Trustees determine is necessary to enable the preparation of consolidated
Generally Accepted Accounting Practice in New Zealand financial statements in accordance with consolidated
ain n fi peetto o the of presentation fair and ration prepa the for entity the of behalf on responsible are
Trustees The
Financial Statements Consolidated ’ Responsibility for the Trustees
PARE HAURAKI FISHING TRUST GROUP Trustees’ Responsibility for the Consolidated Financial Statements STATEMENT OF COMPREHENSIVE INCOME The Trustees are responsible on behalf of the entity for the preparation and fair presentation of the FOR THE 12 MONTHS ENDED 30 SEPTEMBER 2018 consolidated financial statements in accordance with Generally Accepted Accounting Practice in New Zealand and for such internal control as the Trustees determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. 2018 2017 2018 2017 Group Group Parent Parent In preparing the consolidated financial statements, the Trustees are responsible on behalf of the entity for NOTE $ $ $ $ assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Quota Trading Sales 4,470,597 3,883,676 0 0 entity or to cease operations, or have no realistic alternative but to do so. Less Cost of Sales: - Purchases and Fees 1,788,699 1,830,065 0 0
Gross Profit 2,681,898 2,053,611 0 0 Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements Dividend Income Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a – AFL 5 187,884 160,228 0 0 whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report - Subsidiary 0 0 900,000 556,000 that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Other Income 6 2,438,478 2,124,109 500,114 500,302 Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, Less Expenditure they could reasonably be expected to influence the decisions of users taken on the basis of these - Operations 7 1,884,032 2,238,072 471,025 511,425 consolidated financial statements. - Grant Distributions 532,670 500,000 532,670 500,000 A further description of the auditor’s responsibilities for the audit of the financial statements is located at the XRB’s website at: www.xrb.govt.nz/standards-for-assurance-practitioners/auditors- Net Profit (Loss) before Tax 2,891,558 1,559,876 396,419 44,877 responsibilities/audit-report-8/ Income Tax 8 453,485 243,357 0 7,853
Net Profit (Loss) for the period 2,438,073 1,356,519 396,419 37,024
Other Comprehensive income Gain on Sale of Assets 9 491,368 0 0 0 26 27 Total Comprehensive income $2,929,441 $1,356,519 $396,419 $37,024 for the period
Jefferies and Nock Associates Chartered Accountants Attributable to the beneficiaries of the Pare Hauraki Fishing Trust 27 February 2019
Hamilton
FINANCIAL FINANCIAL
These financial statements must be read in conjunction with the notes to the consolidated financial statements and accompanying audit report.
PARE HAURAKI FISHING TRUST GROUP PARE HAURAKI FISHING TRUST GROUP
STATEMENT OF CHANGES IN EQUITY STATEMENT OF FINANCIAL POSITION FOR THE 12 MONTHS ENDED 30 SEPTEMBER 2018 AS AT 30 SEPTEMBER 2018
2018 2017 2018 2017 2018 2017 2018 2017 Group Group Parent Parent Group Group Parent Parent EQUITY $ $ $ $ $ $ $ $ Retained Earnings 73,743,795 70,814,354 584,210 187,791 TOTAL EQUITY $73,743,795 $70,814,354 $584,210 $187,791 EQUITY AT BEGINNING OF CURRENT ASSETS PERIOD 70,814,354 69,457,835 187,791 150,767 Cash and Cash equivalents 10 5,773,146 6,071,924 710,244 334,514
Portfolio Investments 11 22,422,627 21,206,523 0 0 Net profit (Loss) for the period 2,438,073 1,356,519 396,419 37,024 Inventory 12 282,934 1,177,412 0 0 Other Comprehensive Income 491,368 0 0 0 Accounts receivable 13 890,325 396,031 12,259 239,338 Prepaid expenses 86,945 159,249 10,000 0 Total Comprehensive income Income Tax receivable 8 0 100,207 157,500 89,447 for the period 2,929,441 1,356,519 396,419 37,024 Total Current Assets 29,455,977 29,111,346 890,003 663,299 NON CURRENT ASSETS EQUITY AT END OF PERIOD $73,743,795 $70,814,354 $584,210 $187,791 Investments in Fishing Assets 14 41,538,408 41,108,763 0 0 Investments in Limited Partnerships 15 10,338.089 5,741,111 0 0 Investments in Shares 16 5,182,840 3,632,840 0 0 Shareholders Advance – Thames Mussels Ltd 17 418,428 373,078 0 0
Plant & Equipment 18 201,642 1,513,809 0 0
Investment in Subsidiary 19 0 0 100 100
Total Non Current Assets 57,679,407 52,369,601 100 100
TOTAL ASSETS 87,135,384 81,480,947 890,103 663,399 CURRENT LIABILITIES
Accounts Payable 20 684,040 742,306 305,893 475,608 Prepaid Lease Income 21 2,602,350 0 0 0
Total Current Liabilities 3,286,390 742,306 305,893 475,608
28 NON CURRENT LIABILITIES 29 Secured Long Term Loan - Hauraki Fishing Group 22 10,105,199 9,924,287 0 0 Total Non Current Liabilities 10,105,199 9,924,287 0 0
TOTAL LIABILITIES 13,391,589 10,666,593 305,893 475,608
NET ASSETS $73,743,795 $70,814,354 $584,210 $187,791
Trustee Trustee FINANCIAL FINANCIAL These financial statements must be read in conjunction with the notes to the consolidated financial statements and accompanying audit report. Dated 27 February 2019 These financial statements must be read in conjunction with the notes to the consolidated financial statements and accompanying audit report.
PARE HAURAKI FISHING TRUST GROUP PARE HAURAKI FISHING TRUST GROUP
STATEMENT OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS FOR THE 12 MONTHS ENDED 30 SEPTEMBER 2018 FOR THE 12 MONTHS ENDED 30 SEPTEMBER 2018
1 REPORTING ENTITY 2018 2017 2018 2017 These financial statements are for the Pare Hauraki Fishing Trust Group which comprises the Group Group Parent Parent consolidation of the Pare Hauraki Fishing Trust as parent and its’ subsidiary company Pare $ $ $ $ Hauraki Asset Holdings Limited. CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts Pare Hauraki Fishing Trust is a Specific Trust which complies with the requirements of the From providing goods and services 2,758,063 3,893,239 0 0 Maori Fisheries Act 2004. It was recognized as a Mandated Iwi Organisation (MIO) on 23 March From Interest and Dividends 1,226,262 528,986 1,400,114 939,168 2009. The Trust is a ‘Not for Profit’ trust whose primary purpose is to advance every charitable purpose benefitting Hauraki Iwi. As such its principal activity is the distribution of grant funding Cash Payments To Suppliers, Trustees and overhead 2,395,539 2,729,250 446,017 450,625 which advances charitable purposes benefitting the Hauraki Iwi. On 30 September 2017 the To Interest 500,000 500,000 0 0 Trust successfully obtained registration with the Charities Commission (Previously a Maori To Grants and Scholarships 578,367 414,389 578,367 414,389 Authority for taxation purposes) and whilst it operates out of Paeroa New Zealand, it serves
Hauraki Iwi throughout New Zealand. Total Cash In-Flows from Operating Activities 510,419 778,586 375,730 74,154
CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES The Subsidiary Pare Hauraki Asset Holdings Limited is a limited liability Company registered Cash Receipts under the Companies Act 1993. The company complies with the requirements of the Maori From Portfolio Investments 0 1,627,017 0 0 Fisheries Act 2004 requiring it to hold assets on trust for the charitable purposes of the From Sales of Assets 1,259,729 0 0 0 shareholder, Pare Hauraki Fishing Trust. As such the subsidiary company is a ‘For Profit’ From Sales of Fishing Quota 4,128,900 0 0 0 orientated entity whose principal activity is investments, the income of which is provided to Cash Payments the shareholder as a dividend enabling it to carry out its charitable purposes. The company To purchase Investments 4,271,978 5,835,543 0 0 To purchase Assets 119,270 766,797 0 0 carries out this activity as a Maori Authority for taxation purposes and whilst it operates out of To provide Loans 1,806,578 2,667,938 0 0 Thames, New Zealand it invests locally, nationally and internationally.
Total Cash Out-Flows from Investing and Financing These financial statements have been prepared in accordance with the requirements of the Activities (809,197) 7,643,261 0 0 Hauraki Maori Trust Board Act 1988, Section 31 of the Maori Trust Board’s Act 1955, the Maori Fisheries Act 2004, Companies Act 1993 and the Financial Reporting Act 2013. NET INCREASE (DECREASE) IN CASH (298,778) (6,864,675) 375,730 74,154
CASH BALANCES These Group financial statements and accompanying notes were authorised for issue by the 30 Cash & cash equivalents at beginning of period 6,071,924 12,936,599 334,514 260,360 Trustees on 27 February 2019. 31
Cash & cash equivalents at end of period $5,773,146 $6,071,924 $710,244 $334,514 2 BASIS OF PREPARATION
2.1 Statement of Compliance The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP) and the Tier 2 Public Benefit Entities International Public Sector Accounting Standards (PBE IPSAS) and other applicable financial
reporting standards as appropriate that have been authorized for use by the External Reporting Board for Not-For-Profit entities. Disclosure concessions have been applied.
FINANCIAL FINANCIAL The Trust is eligible to report using Tier 2 PBE Standards as it is not publicly accountable and
not large. An entity is considered to be large if it has expenses over $30 million over two These financial statements must be read in conjunction with the notes to the consolidated financial statements and accompanying audit report. consecutive years.
The Trust has elected to take all concessions available to them under Tier 2 PBE Standards. The Transactions with minority interests Trust has also chosen to fully comply with PBE IPSAS 2 Cashflow Statements. The Group applies a policy of treating transactions with minority interests as transactions with parties external to the Group. Disposals of interests in subsidiaries to minority interests result 2.2 Transition to PBE IPSAS Tier 2 from NZ IFRS PBE Standards in gains or losses for the Group that are recorded in the Statement of Comprehensive Income. The Trust's financial statements for the year ended 30 September 2018 are the third financial Purchases of interests in subsidiaries from minority interests result in goodwill, being the statements prepared in accordance with PBE Reduced Disclosure Regime (RDR) Standards. difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary. 2.3 Basis of Measurement Associates The financial statements have been prepared on the basis of historical cost, except for those financial instrument assets and liabilities identified in note 23 as being valued at fair value. Associates are all entities over which the Group has significant influence but not control, generally evidenced by a holding of between 20% - 50% of the voting rights. Investments in The financial statements have been prepared on a going concern basis. associates are accounted for using the equity method. Any goodwill or fair value adjustment attributable to the group’s share in the associate is not recognised separately and is included in the amount recognised as the investment. 2.4 Functional and Presentation Currency The financial statements are presented in New Zealand dollars, which is the Trusts functional The carrying amount of the investment in associates is increased or decreased to recognise the and presentation currency. group’s share of the profit or loss and other comprehensive income’ of the associate.
2.5 Critical Accounting Estimates and Judgements 2.7 Changes in Accounting Policy and Disclosures The preparation of financial statements in conformity with PBE IPSAS requires management to This is the third set of financial statements prepared using the new Not-For-Profit PBE IPSAS - make certain critical accounting estimates, judgements and assumptions that affect the RDR Tier 2 Standards, meaning that the standards adopted in compiling the previous year 2017 application of policies and the reported amount of assets, liabilities, income and expenses. The comparative information have been consistently applied to the compilation of the current year estimates and assumptions are based on historical experience and various other factors that 2018 information. are believed to be reasonable under the circumstances, the results of which form the basis of the judgements. Actual results may differ from those estimates. The specific accounting policies set out below have been applied consistently to all periods
presented in these financial statements. The estimates and judgements are reviewed by management each year. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any 3 SPECIFIC ACCOUNTI NG POLICIES future periods affected. The following specific accounting policies which materially affect the measurement of comprehensive revenue & expenses and the financial position have been applied. 2.6 Principles of Consolidation
3.1 Revenue Recognition Subsidiaries Revenue from the sale of goods is recognised in the income statement when the significant These consolidated financial statements incorporate the assets and liabilities of all subsidiaries risks and rewards of ownership have been transferred to the buyer. Annual catch entitlement 32 of the Pare Hauraki Fishing Trust as at 30 September 2018 and the results of all subsidiaries for (ACE) income is recognised in the fishing season to which it relates. Interest income is 33 the year ended. The Trust and its subsidiaries together are referred to in these financial recognised as accrued. statements as the Group or the Consolidated Entity. 3.2 Expenses Subsidiaries are all those entities (including special purpose entities) over which the Group has All costs are expensed when the related service has been rendered. the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential 3.3 Lease Expenses voting rights that are currently exercisable or convertible are considered when assessing Leases are classified as finance leases whenever the terms of the lease transfers substantially whether the Trust controls another entity. all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Payments under operating leases are recognised in the Statement of Comprehensive Subsidiaries which form part of the Group are consolidated from the date on which control is Income on a straight line basis over the term of the lease. FINANCIAL FINANCIAL transferred to the Trust and de-consolidated from the date that control ceases. The Trust's investments in subsidiaries are held at cost.
3.4 Goods and Services Tax Assets in this category are Portfolio Investments’ measured at fair value with gains or losses Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax recognised in profit or loss. The fair values of financial assets in this category are determined (GST), except for receivables and payables which are recognised inclusive of GST. The net by reference to active market transactions or using a valuation technique where no active amount of GST recoverable from or payable to Inland Revenue is included as part of market exists. receivables or payables. Recognition and measurement 3.5 Equity Funds and Reserves Regular way purchases and sales of financial assets are recognised on trade date – the date on The Parent Trusts’ funds and reserves is retained for the primary purpose of advancing every which the Group commits to purchase or sell the asset. All financial assets are initially charitable purpose benefitting Hauraki Iwi, whilst the subsidiary company’s funds and reserves recognised at fair value plus transaction costs. is retained for profit orientated investments, the income of which is provided to the shareholder as a dividend enabling it to carry out its charitable purposes. Fair value assets are subsequently carried at fair value. Changes in the fair value of monetary and non-monetary securities are recognised in Other Comprehensive Income (OCI). 3.6 Assets
When securities classified as fair value are sold or impaired, the accumulated fair value 3.6.1 Financial Assets (See Note 23) adjustments recognised in equity are included in the Statement of Comprehensive Income as The Group classifies its financial assets in the following categories; at amortised cost and fair Other Income. value financial assets. The classification depends on the business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Management determines the classification of its assets at initial recognition and re-evaluates Dividends on fair value equity instruments are recognised in the Statement of Comprehensive this designation at every reporting date. Income when the Group’s right to receive payments is established.
Classification Amortised cost assets are subsequently carried at amortised cost using the effective interest method. (i) Amortised Cost Amortised cost assets are non-derivative financial assets with fixed or determinable payments Offsetting financial instruments that are not quoted in an active market. They are included in current assets, except for those Financial assets and liabilities are offset and the net amount reported in the balance sheet with maturities greater than 12 months after the end of the reporting period which are when there is a legally enforceable right to offset the recognised amounts and there is an classified as non‑current assets. The Group’s amortised cost assets comprise cash and cash intention to settle on a net basis, or realise the asset and settle the liability simultaneously. equivalents, loans, shareholders advances and receivables as shown in the statement of financial position and associated notes. Impairment of financial assets
The Group’s financial liabilities are measured at amortised cost using the effective interest (i) Assets carried at amortised cost The Group assesses at each reporting period whether there is objective evidence that a 34 method. These include long term borrowings, trade and other payables. 35 financial asset or a group of financial assets is impaired. (ii) Fair Value Fair value financial assets include unquoted equity investments not held for trading. They are Where a financial asset or a group of financial assets is found to be impaired, the impairment included in non-current assets unless the investment matures or management intends to losses are incurred only if there is objective evidence that the impairment resulted from one or dispose of the investment within 12 months of the end of the reporting period. more events that occurred, after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or (iii) Financial Assets at Fair Value through Profit or Loss group of financial assets that can be reliably estimated. Financial assets at FVTPL include financial assets that are held for trading or that meet certain conditions and are designated at FVTPL upon initial recognition. They are included in current
FINANCIAL
assets. FINANCIAL
If the asset’s carrying amount is reduced, the amount of the loss is recognised in the profit and The effective interest method is a method of calculating the amortised cost of a financial asset and loss component of the Statement of Comprehensive Income. If in a subsequent period, the of allocating interest income over the relevant period. The effective interest rate is the rate that amount of the impairment loss decreases and the decrease can be related objectively to an exactly discounts estimated future cash receipts through the expected life of the financial asset, or event occurring after the impairment was recognised (such as an improvement in the debtor’s where appropriate, a shorter period, to the net carrying amount of the financial asset. credit rating), the reversal of the previously recognised impairment loss is recognised in the profit and loss component of the Statement of Comprehensive Income. The Trust assesses at each year-end balance sheet date whether there is objective evidence that a loan is impaired. (ii) Assets classified as fair value The Group assesses at the end of each reporting period whether there is objective evidence that a 3.6.6 Intangibles Quota attached to the fisheries quota shares received by way of settlement are recognised at their financial asset or a group of financial assets is impaired. For equity instruments classified as fair fair value at the date of settlement and subsequently carried at cost less impairment. value, a significant or prolonged decline in the fair value of the security below its carrying value is
also evidence that the assets are impaired. If any such evidence exists for fair value financial assets, Fish quota has an indefinite life and is therefore not amortised, although they are assessed annually the impairment and any subsequent reversals of impairment are recognised in Other for impairment and whenever there is an indication of impairment. Comprehensive Income.
3.6.7 Fixed Assets Derecognition The Group had the following classes of fixed assets: Financial assets are derecognised when the rights to receive cash flows from the asset have expired Plant & Equipment – Marine Farm Development assets (comprised of Mussel Farm structures and or have been transferred and the Group has transferred substantially all risks and rewards of Floats, Ropes, Buoys and Anchors which are capitalised as the farms are developed). All fixed ownership. assets are recorded at cost less accumulated depreciation.
3.6.2 Cash and Cash Equivalents Depreciation of the assets had been calculated at rates permitted by the Income Tax Act 2007 and Cash and Cash Equivalents includes cash on hand, deposits held at call with financial institutions, range from 13%, 24% and 50% accordingly. The Group reviews the residual values and the other term bank investments that are readily convertible to known amounts of cash and which are estimated useful life of assets on an annual basis and it is the Group’s view that the depreciation subject to an insignificant risk of changes in value, and bank overdrafts. rates used, align with the residual values and estimated life of the assets.
3.6.3 Investments Fishing investment assets are recorded at fair value. Management has made the election to present 3.6.8 Inventory Mussel inventory meets the definition of biological assets’ under NZ IAS 41 until the point at which changes in fair value through Other Comprehensive Income (OCI) as the investment relates to an they are harvested. After harvest they are treated as inventory. These inventories are stated at the equity investment that is not held for trading. lower of cost and net realisable value.
3.6.4 Shareholders Advances 3.6.9 Accounts Receivable Advances made between controlled subsidiaries (greater than 50% shareholding) for the Accounts receivable have been recorded at their fair value and subsequently measured at 36 development of Mussel Farms and/or Marine Farm License applications have been offset on amortised cost, less provision for doubtful debts. All known bad debts have been written off and no 37 consolidation. Those made to associates (less than 50% shareholding) remain in the financial general provision for doubtful debts is considered necessary. statements, are stated at cost and are unsecured. 3.7 Liabilities 3.6.5 Loans 3.7.1 Accounts Payable Loans are non-derivative financial assets with fixed or determinable payments that are not quoted Trade and other accounts payable are recognised when the Group becomes obliged to make future in an active market. They are included in current assets, except those with maturities greater than payments resulting from the purchase of goods and services. Trade payables are recognised initially 12 months after the balance date, which are classified as non-current assets. at fair value and subsequently measured at amortised cost using the effective interest method.
Loans are initially recognised at fair value plus transaction costs. After initial recognition, loans and 3.7.2 Loans Given receivables are carried at amortised cost using the effective interest method less impairment. Loans given to external parties are classified as current or non-current liabilities depending upon FINANCIAL FINANCIAL whether the loan is repayable within the ensuing 12 month period or not.
4 Commitments and Contingencies 7 Operations Expenditure As at 30 September 2018 a contingent liability exists on the subsidiary PHAHL to Westpac Bank for a 2018 2017 performance bond in favour of Waikato Regional Council (Environment Waikato) of $255,395 PARENT support expenses $ $ (2017: $255,395). The bond is held to cover the costs of the removal of mussel farm structures Auditor 6,000 4,000 should the consent granted to the subsidiary to operate a mussel farm be revoked, or should the Bank charges 109 104 subsidiary cease to operate. If the bond should be called up, it is unlikely that there would be any Communications 40,000 40,000 reimbursement. Consultants 23,360 16,856 There are no other known contingent liabilities and the Group has not granted any securities in Governance Hui, Travel & Other 20,041 33,853 respect of liabilities payable by any other party whatsoever. HMTB Services provided ### 248,000 284,000 Iwi Register 30,000 30,000 The subsidiary also has a vehicle lease commitment of $782 per month, expiring in September Trustees Fees *** 98,599 98,312 2019. Trustees Indemnity Insurance 4,916 4,300
There is a future capital contribution commitment to Pioneer Capital Limited Partnership as Parent Total 471,025 511,425 disclosed in Note 15. SUBSIDIARY support expenses As noted in previous financial statements, negotiations are continuing with Inland Revenue for the Accountancy & Admin ### 51,665 52,342 remission of penalties charged in prior years. This matter has not been resolved at balance date and Audit Fee 8,000 5,000 accordingly there is a contingent asset for the amount of the penalties (2017: $36,472). Bank charges 428 1,952
Consultancy Fees 258,797 133,710 5 AFL Dividend Depreciation 70,863 492,237 Subsidiary PHAHL received a Gross Dividend of $187,884 from Aotearoa Fisheries Ltd (AFL) during the period (2017: $160,228) which equates to $46.83 per share (2017: $40). Directors costs *** 123,000 124,143 Interest 680,913 663,880 6 Other Income Legal expenses 22,676 30,376 2018 2017 2018 2017 Management Fees 129,465 117,350 Group Group Parent Parent Other support costs 67,200 105,657 $ $ $ $ Subsidiary Total 1,413,007 1,726,647
Interest from- Group support expenses $ 1,884,032 $ 2,238,072 a -Westpac / BNZ bank deposits 152,351 201,819 114 302
b -Hauraki Fishing Group Loan 500,000 500,000 500,000 500,000 c -Loans provided 269,701 167,793 0 0 Related Party Transactions d -Portfolio Investments 1,516,426 1,254,497 0 0 ### The Hauraki Maori Trust Board (HMTB) as the Corporate Trustee of the Parent (PHFT) is a 38 Total Other Income 2,438,478 2,124,109 500,114 500,302 related party which provided managerial, financial and administrative services to PHFT to the value 39 of $248,000 for the 12 month period ending 30 September 2018 (2017: $284,000). At 30 September Table 2018 an amount of $43,776 remains payable. a. Interest received and accrued at balance date,
b. Interest received on HFG loan, c. Interest accrued on Investment loans, The Hauraki Maori Trust Board (HMTB) did not provide any services to subsidiary’ PHAHL for the d. Earnings on Portfolio investments including $1,328,517 of revaluations. period ending 30 September 2018 (2017: Nil ).
Terms on balances owing to/from related parties are non-interest bearing and repayable on demand. No related party debts have been written off or forgiven during the year.
FINANCIAL *** One of the three directors of the subsidiary is also a trustee of the Parent PHFT and was paid FINANCIAL
$123,000 during the period.
8 Income Tax 11 Portfolio Investments Reconciliation of the prima facie income tax payable by the group on profit (loss) with the income All Portfolio investments are financial assets at fair value through profit and loss. Revaluations tax expense, and of the taxation liability is as follows; totalling $1,328,517 are included in Portfolio Investments Earnings (see note 6d above) in the statement of other comprehensive income. 2018 2017 TAX EXPENSE Group Group 12 Inventory Mussel inventory meets the definition of biological assets under NZ IAS 41 until the point at which $ $ they are harvested. After harvest they are treated as inventory. Biological assets have been valued Profit (Loss) before Tax 2,986,507 1,599,876 at cost rather than fair value as required by NZ IAS 41. The subsidiary has adopted a cost price
valuation for the initial recognition of biological assets as determining a fair value would be Income Tax at 17.5% 522,639 279,978 unreliable due to the age, nature and uncertainty of a market for the assets. Tax on Non-deductible income 80,749 0 13 Accounts Receivable Tax on Non-deductible expenses (149,903) (36,621)
Income Tax expense 453,485 243,357 2018 2017 2018 2017
Group Group Parent Parent TAX CREDITS $ $ $ $ Balance at Beginning of period (100,207) (110,652) Maori Authority Tax Credits refunded 254,800 70,805 GST 11,707 69,677 11,707 0 Income Tax paid 99,298 354,800 Interest accrued 5,830 12,358 552 552 Asset sales 660,441 0 0 0 RWT paid 516 571 Imputation credits attached to Debtors 212,347 313,996 0 238,786 Dividends received 32,880 28,040 890,325 396,031 12,259 239,338 Balance at end of period 287,287 343,564 14 Intangibles and Investments – Fishing Assets Income Tax payable (refundable) 166,198 (100,207)
2018 2017
$ $ As at balance date 30 September 2018, subsidiary Pare Hauraki Asset Holding Ltd holds $1,511,874 of Maori a. Coastal Permits – at cost 10,438,038 10,438,038 Authority Credits (2017: $1,497,887), which are available to be attached as tax credits to any distributions b. Waterspace Authorisations 11,226,020 11,226,020 made to its shareholder, Pare Hauraki Fishing Trust. c. Fishing Quota Shares 13,875,070 13,875,070 9 Gain on Sale of Assets d. Loans Given 4,985,000 4,900,000
The subsidiary has sold all Coromandel and Aotea marine farming lines and equipment during the Loans Interest accrued 457,325 341,083
year as disclosed in note 18. 40 e. Quota Shares for GLM Mussel Spat 126,000 126,000 41
f. Consents / Tender costs 430,955 202,552 10 Cash and Cash Equivalents Total 41,538,408 41,108,763 2018 2017 2018 2017 Group Group Parent Parent (a) Intangible Assets – Coastal Permits $ $ $ $ Coastal permits are shown at cost price and will be revalued every three years at fair value under Cash at bank 1,689,293 2,044,412 575,403 129,786 the Revaluation model per NZ IAS 38. In the intermediate years the permits are tested for Term Deposits 4,083,853 4,027,512 134,841 204,728 impairment and the next valuation is scheduled for 2019.
5,773,146 6,071,924 710,244 334,514 (b) Intangible Assets - Waterspace Authorisations Waterspace Authorisations were valued at $20,060,926 during the settlement process and this FINANCIAL FINANCIAL Includes Cheque and Savings accounts and Term deposits lodged with Westpac bank and Bank of amount represents the economic value of the Authorisations. However, due to the significant time NZ. The Savings account earned 0.5% interest and the Term deposits rates ranged between 2.65% required to obtain resource consents and develop the Waterspace, and the expected timing of and 2.83% over periods of one to twelve months.
future cash flows from the investment, the Authorisations are recorded at fair value of PHAHL also has an income investment in Port Nicholson Fisheries Limited Partnership. Total profit $11,226,020. share from this partnership amounted to $123,662 (2017: $87,365) and has been included in Quota Trading Sales’ in the Statement of Comprehensive Income. Waterspace Authorisations are shown at fair value under the Revaluation model per NZ IAS 38. 16 Investments in Shares (c) Intangible Assets – Fishing Quota Shares 2018 2017 Quota Management Systems Limited valued this asset at balance date 1 September 2017 at $ $ $30,566,814. In accordance with subsidiary PHAHL policy, this increase in value has not been Aotearoa Fisheries Ltd – Income shares 3,510,000 3,510,000 recognised in the financial statements. Arcus Property Limited 1,550.000 0
Quota Shares are valued at cost price under the cost model as per NZ IAS 38. Thames Mussels Ltd 100,040 100,040 Sugarloaf Port Co Ltd 22,700 22,700 (d) Investments – Loans Given Coromandel Marine Farmers Ltd 100 100 A loan of $2,400,000 was made to a non-related party on 28th September 2015. The loan term is for Total 5,182,840 3,632,840 10 years at an interest rate equal to the official cash rate (OCR) plus 4.53%. Security is by way registered charge over aquaculture assets. All shares except for Aotearoa Fisheries Ltd – Income shares’ are stated at cost as fair value of these A second loan for $2,500,000 was made to another non-related party on 18 September 2017. The shares cannot be reliably measured. loan is repayable on demand at an interest rate of 5%. Security is by way of a GSA over cash and property assets. Arantis Corporate Finance valued the AFL income shares on 30 September 2017, at $3,378,000. In A third loan for $85,000 was made to another non-related party on 13 June 2018. The loan is for 36 accordance with subsidiary company policy, this decrease in value has not been recognised in the months at an interest rate equal to the current BNZ Home Loan Floating Rate plus 2.5%. Security is financial statements. by way of a GSA over company assets. 17 Shareholders’ Advance – Thames Mussels Ltd (e) Investments – Quota Shares for GLM9 Mussel Spat The funds have been advanced to Thames Mussels Ltd towards the costs of a marine farm license Subsidiary Pare Hauraki Asset Holding Ltd purchased 722,222 GLM 9 Quota Shares (equivalent to application. The advance is stated at cost and is unsecured. 1300kg) effective 1 April 2016. These shares were independently valued by Toroa Strategy Limited at $126,000. The associates have no liabilities for which the subsidiary is jointly or severally liable (2017: Nil)
(f) Investments – Consents / Tender costs 18 Plant & Equipment The equipment is located in the below areas and whose values are disclosed below after Costs have been incurred with a view to acquiring resource consents for further aquaculture activities Depreciation has been deducted. in the Gulf. These costs are capitalised and shown as a contingent asset until resource consents are
granted. 2018 2017
15 Investments in Limited Partnerships $ $
Aotea 0 103,073 2018 2017 42 43 $ $ Coromandel 0 1,212,452
Opotiki 201,642 198,284 Whenuapai Housing LP 7,500,000 5,650,000
Pioneer Capital Partners LP 258,089 91,111 Total 201,642 1,513,809
Te Puia Tapapa LP 80,000 0
MR01 LP 2,500,000 0 The subsidiary has capitalised Marine Farm Development costs as per NZ IAS 16 due to the costs
being directly attributed to bringing the asset to the condition necessary for its operation in the Total 10,338,089 5,741,111 manner intended by management. All fixed assets are reviewed annually for residual values and
estimated useful life. These investments by the subsidiary company PHAHL are recorded at cost. The company believes
this reflects fair value as future increases in value are modified by ongoing capital contributions and The subsidiary company sold all Coromandel and Aotea marine farming lines and equipment during operating costs. FINANCIAL the year, which resulted in a gain on sale of $491,368 disclosed in the statement of comprehensive FINANCIAL
income. Subsidiary PHAHL has committed to a total investment of $1m in Pioneer Capital Partners LP.
19 Investment in Subsidiary The Pare Hauraki Fish Trust as parent invested $100 for the purchase of all the shares in its subsidiary At 30 September 2017 company, Pare Hauraki Asset Holding Ltd. Fair value financial assets – Shares - Investments in Shares 122,840 3,510,000 3,632,840 20 Accounts Payable - Limited Partnerships 0 5,741,111 5,741,111
Fair Value through Profit or Loss – 2018 2017 2018 2017 Portfolio 0 21,206,523 21,206,523 Group Group Parent Parent Cash & Cash equivalents 6,071,924 0 6,071,924 $ $ $ $ Fishing Asset Investments 41,108,763 0 41,108,763 Trade payables 254,066 380,552 42,117 113,854 Shareholders Advance 373,078 0 373,078 Income Tax payable 166,198 0 0 0 Prepaid expenses 159,249 0 159,249 HMTB payable 43,776 109,657 43,776 109,657 Receivables 496,238 0 496,238 Grants accrued 220,000 252,097 220,000 252,097 Total Financial Instruments 48,332,092 30,457,634 78,789,726
Total 684,040 742,306 305,893 475,608 Non-Financial Instruments 2,691,221 0 2,691,221 Total Group Assets 51,023,313 30,457,634 81,480,947
21 Prepaid Lease Income GROUP Liabilities as per Balance Sheet The subsidiary company PHAHL entered into an agreement for the sale of 3 years annual catch At 30 September 2018 entitlement (ACE) commencing 1 October 2017. The unearned portion of these amounts is shown Trade and other payables 3,286,390 0 3,286,390 as a current liability in the statement of financial position. Lease Income prepaid 10,105,199 0 10,105,199
Total Parent Liabilities 13,391,589 0 13,391,589 22 Loan Hauraki Fishing Group
This loan arose from the subsidiary company’s purchase of all the fishing assets owned by the At 30 September 2017 Hauraki Fishing Group and Tai Moana Marine Farms Ltd. The loan is secured by a registered General Security Agreement (GSA) over the subsidiary company’s present and after acquired assets dated Trade and other payables 742,306 0 742,306 21 June 2016. The interest rate applicable to this loan is currently 6.89%. Lease Income prepaid 9,924,287 0 9,924,287 Total Parent Liabilities 10,666,593 0 10,666,593 23 Financial Instruments by Category Amortised Fair Total Amortised Fair Total GROUP Assets as per Balance Sheet cost value PARENT Assets as per Balance Sheet cost Value At 30 September 2018 $ $ $ At 30 September 2018 Fair value financial assets – Shares Investment in subsidiary 100 0 100 - Investments in Shares 1,672,840 3,510,000 5,182,840 Cash & Cash equivalents 710,244 0 710,244 44 - Limited Partnerships 0 10,258,089 10,258,089 Income tax receivable 157,500 0 157,500 45 Fair Value through Profit or Loss - Prepaid expenses 10,000 0 10,000 Portfolio 0 22,422,627 22,422,627 Receivables 12,259 0 12,259 Cash & Cash equivalents 5,773,146 0 5,773,146 Total Parent Assets 890,103 0 890,103 Fishing Asset Investments 41,618,408 0 41,618,408
Shareholders Advance 418,428 0 418,428 At 30 September 2017 Prepaid expenses 86,945 0 86,945 Investment in subsidiary 100 0 100 Receivables 890,325 0 890,325 Cash & Cash equivalents 334,514 0 334,514 Total Financial Instruments 50,460,092 36,190,716 86,650,808 Income tax receivable 89,447 0 89,447 Receivables 239,338 0 239,338 Non-Financial Instruments 484,576 0 484,576 FINANCIAL FINANCIAL Total Group Assets 50,944,668 36,190,716 87,135,384 Total Parent Assets 663,399 0 663,399
PARENT Liabilities as per Balance Sheet At 30 September 2018 Trade and other payables 305,893 0 305,893
Total Parent Liabilities 305,893 0 305,893
At 30 September 2017 Trade and other payables 475,608 0 475,608
Total Parent Liabilities 475,608 0 475,608
24 Events Subsequent to Balance Date There were no events subsequent to balance date 30 September 2018.
46 47 FINANCIAL
ANNUAL PLAN SCORECARD OF PERFORMANCE 2017- 2018
OPERATIONAL OBJECTIVE TARGET MEASURES END OF YEAR RESULT
Exercise Good Governance. Annual Report and Annual Plan of PHFT and PHAHL documents are available 20 working days prior to the Achieved Annual General Meeting.
Consolidation and financial audits of PHFT and PHAHL completed in timely manner. Achieved
Trustees to increase their information and knowledge of fisheries and aquaculture. Achieved
To review the Trust Deed and if appropriate seek amendment to the Trust Deed. Achieved
Maintain strategic relationship with Maintain reporting and relationships between the Boards, Chairs and Executives of PHFT and PHAHL. Achieved Pare Hauraki Kaimoana (PHAHL). Review key documents such as the Annual Plan. Achieved
Keep under review appointments to Asset Holding Company of both independent directors and PHFT Achieved Trustees.
Receive and approve the Asset Holding Company Annual Plan for 2018-2019 period setting out: Achieved
- Key strategies for the use and development of fisheries aquaculture and other assets.
- Expected financial return on fisheries and aquaculture settlement assets.
- Its program to reorganise settlement quota held by it.
- Any proposal to change company’s constitution. 48 49
Develop all transferred water space assets. Progressively obtain statutory consents to enable development of the water space recently transferred to Achieved PHAHL
Progressively develop and operate marine farming in the water space that was recently transferred to Achieved PHAHL.
Create wealth from a diversified investment Review the major non fishing and aquaculture investment projects implemented by the Asset Holding Achieved portfolio. Company. SCORECARD SCORECARD ANNUAL PLAN SCORECARD OF PERFORMANCE 2017- 2018
OPERATIONAL OBJECTIVE TARGET MEASURES END OF YEAR RESULT
To ensure PHFT is appropriately structured Maintain the Service Agreement with HMTB confirming that: Achieved and managed to meet its objectives and legislative requirements. - It will administer the grants programme on behalf of the Trust
- Provide Shared Managerial, Administrative and Financial Services
- Provide an active marketing and communication strategy and maintain an up to date Iwi Register
- Communicate through the website social media cultural networks and other methods to ensure PHFT services are well understood by its members
Review distribution of benefits and grants during 2018-2019 year Achieved
Ensure settlement rights are protected Achieved
Increase the Tribal Register, improve the registration and approval process and ensure it is up to date. Achieved
50 51 SCORECARD SCORECARD DIRECTORY NATURE OF GROUP The Pare Hauraki Fishing Trust is the Joint Mandated Iwi Organisation for the purpose of the Maori Fisheries Act 2004 and the Maori Aquaculture legislation.
CORPORATE TRUSTEE Hauraki Maori Trust Board (HMTB) not the individual Trustees of the HMTB.
HAURAKI MAORI TRUST BOARD TRUSTEES David Taipari (Chairman) Ngāti Maru Pine Harrison (Deputy Chairman) Ngāti Porou ki Harataunga ki Mataora John Linstead Ngāti Hako Joe Davis Ngāti Hei Stephen Zister Ngāi Tai Harry Mikaere Ngāti Pukenga ki Waiau Wiremu Peters Patukirikiri Pongarauhine (Honey) Renata Ngaati Whanaunga Sonny Te Karu Ngāti Tara Tokanui Arama Chase Ngati Tamatera Millie Berryman Ngati Paoa Mapuna Turner (part year) Ngāti Rahiri-Tumutumu Daniel Braid (part year) Ngāti Rahiri-Tumutumu
BANKERS Westpac New Zealand Limited Thames Branch
AUDITORS Jefferies Nock and Associates
52 SOLICITORS Aitkins Holm Majurey Limited
ADDRESS Coronation Chambers 41 Belmont Road PO Box 33 Paeroa 3640 New Zealand
Telephone: 07 8627521
DIRECTORY Email: [email protected] Building the Hauraki nation, together!