TE PŪRONGO Ā-TAU MŌ TE TAU I EKE I TE 30 O PIPIRI 2016 Annual Report for the Year Ended 30 June 2016

TE PŪRONGO Ā-TAU MŌ TE TAU I EKE I TE 30 O PIPIRI 2016 Annual Report For the year ended 30 June 2016

TE PŪRONGO Ā-TAU MŌ TE TAU I EKE I TE 30 PIRIPI 2016 TE RĀRANGI UPOKO Contents

NGĀ TIROHANGA A TE HEAMANA ...... 02 Chair’s Review

TE PŪRONGO A TE TĀHUHU RANGAPŪ ...... 08 Chief Executive’s Report

NGĀ PUTANGA MATUA 2015-2016 ...... 15 Key Outputs 2015-2016

TE MANA ARATAKI ME NGĀ WHAKAEANGA ...... 16 Governance and Accountability

TE TAUĀKĪ HAEPAPATANGA ...... 19 Statement of Responsibility

TE PŪRONGO A TE KAITĀTARI KAUTE MOTUHAKE ...... 20 Independent Auditor’s Report

TE TAUĀKĪ MAHI ...... 22 Statement of Service Performance

TE TAUĀKĪ O NGĀ WHIWHINGA MONI WHĀNUI ...... 24 Statement of Comprehensive Revenue and Expense

TE TAUĀKĪ NEKENEKE TŪTANGA ...... 24 Statement of Changes in Equity

TE TAUĀKĪ TŪNGA PŪTEA ...... 25 Statement of Financial Position

TE TAUĀKĪ KAPEWHITI ...... 26 Statement of Cash Flows

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA ...... 27 Notes to the Financial Statements TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI MŌ TE TAU I EKE I TE 30 O PIPIRI 2016 Annual Report of Māori Television Service For the year ended 30 June 2016

Presented to the House of Representatives, pursuant to section 44(2) of the Māori Television Service (Te Aratuku Whakaata Irirangi Māori) Act 2003.

Ministers for Māori Development and Finance In accordance with the Māori Television Service (Te Aratuku Whakaata Irirangi Māori) Act 2003 and on behalf of the Māori Television Board, I deliver the Annual Report on the operations of Māori Television for the year ended 30 June 2016.

Hon Georgina te Heuheu QSO Chair

Annual Report of Māori Television Service 2016 1 NGĀ TIROHANGA A TE HEAMANA Chair’s Review

Ka tangi te tītī, Ka tangi te kākā, Ka tangi hoki ko au, Tihe mauriora! Ka mihi ki te tangata ka tangi ki te whenua. Ngā mate haere, haere, haere. Ki a tātou e takatū nei i te mata o te whenua, kei te mihi, kei te mihi, kei te mihi. Tēnā tātou katoa.

I te tau 2015-2016, ka rite te tipu me te pakari haere o ngā kaupapa i a Whakaata Māori. I roto i tēnei wā, ka tīmataria he tūmahi ki te rangahau i te whakaroherohenga o ngā momo whakaatatanga, ka whakahoungia haerengia te rautaki titiro ki ngā momo whakaatatanga, ka naomia atu ngā hangarau hou rawa, ka whānaketia hokitia he ara whai pūtea hou hei tautoko i ngā mahi i ngā punaha pāpāho puta noa i te kamupene. Tāpiri atu ki ngā pāhotanga i runga i ngā hongere e rua, kei te nui haere te rawea o ngā pāhotanga i a mātou pūnaha pāpāho rorohiko. Ko te mea nui, kei te arotahi tonu a Whakaata Māori ki te whakatairangatanga me te oranga o te reo Māori me ngā tikanga Māori, kei te whakatutuki hoki i ōna kawenga i raro i te ture me ōna kawenga ki te taupori whānui i te whakaoranga o te reo me te ahurea Māori. Hari ana ahau me te Poari o Whakaata Māori ki te whakamōhio atu mō te pai o ngā mahi me te pakari o ngā kaupapa i hua i tēnei tau i a mātou te kaipāho tangata whenua o Aotearoa.

PŪMAU KI TE REO MĀORI Kei te takatū a Whakaata Māori ki te ārahi i te Kāwanatanga me āna mahi whakaora i te reo Māori whai muri iho i te whakamanatanga a Paremata i Te Ture mō te Reo Māori, i te marama o Paengawhāwhā i te tau 2016. Ka whakatakoto i te Ture hou he huarahi hei whai tahi mā te Karauna me ngā iwi me Ngāi Māori kia eke ai ngā tūmanako mō te reo Māori. Mā te Ture hou ka āhei te whakamoe i Te Pūtahi Paoho – te rōpū i tū hei māngai mō ngā pānga a te Māori i te taha whakahaere o Whakaata Māori – me te whakawhiti i ngā tūranga me ngā mahi me te mana whakahaere ki a Te Mātāwai. Ka noho te hinonga nei hei māngai mō te iwi me Ngāi Māori i roto i ngā kaupapa whakaora i te reo Māori i roto i ngā hapori. Whāia, ka riro te mana ki

2 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 a Te Mātāwai ki te tohu i ngā kaiwhakahaere tokowhā ki te i rihaina i ō rāua nohoanga: ko Tākuta Cathy Dewes ONZM Poari o Whakaata Māori. (Te Arawa, Ngāti Porou) me Rikirangi Gage (Te Whānau-a- Apanui, Ngāti Porou, Whakatōhea, Ngāti Maniapoto). Hei Kīhai e wawe te pā mai o te Ture ki a mātou mahi. Heoi, ko te whakakī i ngā whawharua i ngā Kaiwhakahaere ka pōhiri mea kē, ka kaha ake ngā mahi ki te whakaora i te reo Māori mātou i a Whetu Fala (Ngā Rauru, Ngāti Maniapoto, Ngāti i te whakahiatonga o ngā rautaki reo Māori motuhake e rua Maru ki Taranaki, Hāmoa, Rotuma) rāua ko John Tamihere kiia ai he maihi. Ka hāngai pū te Maihi Māori – ko Te Mātāwai (Ngāti Porou, Whakatōhea, Tainui). te rōpū ārahi – ki te whakaora i te reo o ngā tāngata Māori me ngā iwi me ngā hapū me ngā hapori; waihoki, ko ngā Ka mihi ahau ki ngā mema katoa o te Poari mō tō rātou kawenga o te Karauna kua takoto ki te Maihi Karauna, he whakaaro nui ki te oranga o te reo; hei ngā wā katoa ka rautaki ka hora ki ngā tāngata katoa o Aotearoa. pau o rātou kaha ki te kaupapa. Ko tēnei kōrero nā mātou nā te Poari; otirā, kei te mihi ki ngā Kaiwhahaere mahi i raro Kei te hihiko katoa i a Whakaata Māori ki te mahi ngātahi i a Paora Maxwell, tae rawa atu ki ngā kaimahi; kātahi te me ētahi atu, ki te whai wāhi hoki ki te whakahiatotanga o te hunga pūmau, te hunga koi ko ngā kaimahi. rautaki a Maihi Karauna. Whāia, kei te pūmau a Whakaata Māori kia mahi ngātahi me ngā pūtahi reo Māori ki te Nā te mana kōkiri i a Whakaata Māori, kua tūwhera, kua whakapiki i te tokomaha kei te kōrero Māori, ki te hiki ake wātea te whakawhiwhi i te reo Māori me ngā tikanga hoki i ngā whaiaro o ngā tāngata katoa o Aotearoa mō te Māori ki te hunga mātaki mai, ahakoa kei hea rātou. Nā reo Māori ka kōrerotia. reira, e tika ana ko te mihi whakamutunga ki te hunga mātakitaki mai, mō ngā werowero mai me te wairua hihiko NGĀ MIHI NUI tērā ka puta. Kei te whakaae atu kei te mihi atu au ki te rōpū tuatahi o Kāore he ārikarika o ngā mihi ki a koutou ka hono ki a ngā rōpū e rua hei tā te ture, me mātua whai pūrongo i a Whakaata Māori ki te mātaki i ngā hōtaka mutunga mai o te mātou. Ko Te Pūtahi Paoho te kanohi o te Māori Electoral Māori te āhua. Haere mai, ka haere tātou i tētahi haerenga College, i ōna rā, heoi, kua eke te wā ki a ia, kua whakatūria mīharo. Kapi katoa te ao i te huhua o ngā ara pāpāho kei he rōpū hou ko Te Mātāwai hei whakakī i tērā tūranga. Nei te pāho i ngā tini kaupapa, i runga i tērā āhuatanga ka te mihi a Whakaata Māori ki ngā mema o mua me ngā whakanui mātou i a koutou e mātaki mai ana, e tautoko ana mema ināianei – tino pai rawa atu ngā mahi. i te kaupapa. Ki a koutou katoa, ngā mihi. Ka mihi ki ō mātou Minita whai pānga, a Hon Te Ururoa Ka huri. Flavell rāua ko Hon Bill English, ngā kanohi o te Karauna ki te aroturuki haere i a mātou mahi e ai ki te ture; ka mihi hoki ki a rāua e tautoko nei i tā mātou mana ki te kōkiri i ngā kaupapa. Hon Georgina te Heuheu QSO Ka tahuri ahau i konei ki te mihi ki ngā Kaiwhakahaere e rua Chair

Annual Report of Māori Television Service 2016 3 NGĀ TIROHANGA A TE HEAMANA Chair’s Review

The 2015-2016 year has been one of constant and credible growth for Māori Television. During the period under review, the organisation initiated an extensive segmentation research project, refreshed its content strategy, invested in new technology and cultivated new revenue streams to support a company-wide multi-platform focus. As well as maintaining our traditional television channels, we have continued to experience exponential growth in the consumption of content delivered on our digital media platforms. Above all, Māori Television has maintained its focus on the promotion and protection of te reo Māori me ngā tikanga Māori whilst fulfilling its statutory and public obligations to revitalise Māori language and culture. On behalf of the Board of Māori Television, it is my pleasure to report on another strong year of performance by New Zealand’s indigenous broadcaster.

Committed to Te Reo Māori Māori Television is well positioned to take a leadership role in the Government’s efforts to support the revitalisation of the Māori language after Parliament passed the historic Māori Language Act, Te Ture mō te Reo Māori, in April 2016. The new Act outlines a better way for the Crown, iwi and Māori to work together towards a shared vision for Māori language. It paves the way for the disestablishment of Te Pūtahi Paoho – the Electoral College that represents Māori stakeholder interests in the governance of Māori Television – and the transferral of its roles, functions and powers to Te Mātāwai.

As well as maintaining our traditional television channels, we have continued to experience exponential growth in the consumption of content delivered on our digital media platforms. Hon Georgina te Heuheu QSO, Chair

Māori Television is well positioned to take a leadership role in the Government’s efforts to support the revitalisation of the Māori language after Parliament passed the historic Māori Language Act, Te Ture mō te Reo Māori, in April 2016. The new Act outlines a better way for the Crown, iwi and Māori to work together towards a shared vision for Māori language. It paves the way for the disestablishment of Te Pūtahi Paoho – the Electoral College that represents Māori stakeholder interests in the governance of Māori Television – and the transferral of its roles, functions and powers to Te Mātāwai. This new entity will lead te reo Māori revitalisation efforts at a community level on behalf of iwi and Māori. Once established, Te Mātāwai will appoint four of Māori Television’s directors.

4 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 While the Act itself does not immediately impact on our Māori Television was largely responsible for a 2.4 per cent operations, it does provide a significantly strengthened increase – or 298 more hours – of local content across the approach to Māori language revitalisation through the free-to-air broadcasters researched. development of two separate Māori language strategies. The Of the six national channels, Māori Television screened Maihi Māori strategy – led by Te Mātāwai – will focus on Māori, the largest amount – 555 hours – of documentary iwi, hapū, whānau and community language revitalisation programming. In addition, the amount of drama and while the Crown’s responsibility at a national level is the Maihi comedy on Māori Television doubled in 2015 and this Karauna strategy which will target all New Zealanders. included first-run programmes such as My Country Song Māori Television is a key enabler in the delivery of these distinct and Find Me a Māori Bride. A large sports provider, Māori but complementary strategies with a specific focus on taking Television also screened more than 127 hours of rugby the language into homes via television and multi-platform league in 2015 and hosted the free-to-air Vodafone devices, thereby increasing the use of te reo Māori among Warriors’ matches for the second year. whānau and families. We are excited about the opportunities We pride ourselves on producing quality shows that to work together in a more coordinated way and to contribute tell stories from a uniquely Aotearoa-New Zealand to the development of the Maihi Karauna strategy. perspective and the look, feel and entertainment factor In the meantime, Māori Television is committed to working of our programming remains fundamental to growing the collaboratively with Māori language agencies including Te number and regularity of our viewers. Taura Whiri i te Reo Māori, Te Puni Kōkiri and Te Māngai Despite the realities of our operating environment, Māori Pāho as well as the wider Māori language sector to increase Television has continued its legacy of fiscal prudence the number of te reo Māori speakers and to improve the and maintained a strong financial management system. attitudes of all New Zealanders towards the use and unique A projected significant deficit for the 2016 financial year position of Māori as this country’s indigenous language. was reforecast to a modest surplus. Sales growth has been To this end, a research project has begun in partnership with driven off the back of a new sales team, new content to Te Māngai Pāho which looks at Māori Television’s impact take to market, more productive relationships with Crown – and the impact of broadcasting – on Māori language and media agencies and focused efforts on growing our revitalisation. This project will enable us to understand and, audience to attract new partners. more importantly, measure our effect on attitudes towards and use of te reo Māori. It is envisaged that the research will Content and Brand Strategy provide actionable findings that will drive better outcomes In this landscape of traditional and digital viewing usage and return on investment for Māori language revitalisation via and preferences, understanding and meeting the needs of broadcasting, and will also be used to inform the development the target groups and segments that are important to Māori of the Government’s new Māori language strategy. Television has never been more critical. A major goal has been to use content selection, content creation, marketing I am confident that we have the leadership and strategy and distribution to reach one million viewers per week. to engage and grow audience numbers and, in doing so, demonstrate the contribution that Māori Television makes An audience segmentation research project – completed in fulfilling its public service responsibility to enrich New at the end of 2015 – has led to the development of an Zealand society, culture and heritage. audience-centric Content Strategy targeting five growth audiences. Rangatahi viewers have been identified as Broadcasting Year in Review particularly important as half of the Māori population is An organisational realignment, a new strategic direction under the age of 23. The other growth audiences identified and development of a new business model in 2015 has are youth potentials, loyals, lapsed and urban professionals. resulted in a growth-focused approach across Māori This foundation research has provided a benchmark Television to support our vision – for te reo Māori to be for ongoing brand monitoring and understanding our valued, embraced and spoken by all New Zealanders. While audiences as well as identifying potential opportunities total audience numbers for television viewing over the past for growth. The audience insights gained will also 12 months reflect an overall decline across the industry, support development of a refreshed brand strategy and Māori Television experienced a 22 per cent annual increase a revitalised consumer-facing presence that closely aligns in unique visits to its website. with our Content Strategy and wider kaupapa. Year on year, our website – www.maoritelevision.com – has The research is already making a significant contribution to seen increases in unique users (3.1 million, up 22 per cent), attracting and growing audiences with cumulative viewing sessions (5.9 million, up 20 per cent) and page views (13.8 up 13 per cent since the launch of our new season of shows million, up eight per cent). Of our online viewers, 57 per in March 2016. The new schedule brings content together cent accessed our content via mobile devices; nearly 20 per under themed nights – as identified by ratings – including cent were living overseas. sports, insights, lifestyle, features and movies. Māori Television has also reaffirmed its role as a complementary public service broadcaster, continuing to Investing in our Future lead the way as New Zealand’s largest free-to-air provider In a rapidly changing broadcasting and media landscape, and of local content in prime time for 2015. According to a NZ as a niche New Zealand broadcaster, it is critical that Māori On Air report, local content made up 82 per cent of Māori Television takes advantage of technological advancements to Television’s prime time hours compared with 51 per cent remain relevant to current and new audiences. We appreciate for TV One and 50 per cent for TV3. It also showed that that our efforts to grow the Māori language were supported

Annual Report of Māori Television Service 2016 5 by the Minister for Māori Development with a much-needed and Hon Bill English, who in representing the Crown provide investment of $10.6 million. not only the statutory oversight for our operations but ongoing positive support for our mandate. These have Spread over four years, the additional funding for been key factors in the progress achieved during the 2015- infrastructure and technology ensures that Māori 2016 year. Television’s vision for the revitalisation of te reo Māori me ngā tikanga Māori remains on track. The funding will I acknowledge the contribution of two Directors who be used to upgrade the quality of our transmission to resigned during this period. Dr Cathy Dewes ONZM (Te High Definition (HD) – providing viewers with clearer and Arawa, Ngāti Porou) joined the Board in 2007. Cathy’s crisper pictures – and will also enable us to increase our wealth of knowledge and understanding of Māori language investment in multi-platform technology to support the revitalisation, coupled with her experience in governance delivery of content to audiences whenever they want it and and leadership roles, has had a significant impact on our wherever they live. direction. Rikirangi Gage (Te Whānau-a-Apanui, Ngāti Porou, Whakatōhea, Ngāti Maniapoto) joined the Board in The funding boost further supports the Government’s 2010. Rikirangi’s profound knowledge and understanding Māori Language Strategy by helping Māori Television of te reo Māori me ngā tikanga Māori, together with an to reach, attract and grow viewers, particularly youth. outlook focused on the demands of modern business, have Multi-platform strategies to evolve how our content is served the Board well. delivered will continue to grow in importance for Māori Television. This is especially true if we are to strengthen our In their place, we welcomed two new Directors: Whetu Fala connection with Māori youth who are spending less time (Ngā Rauru, Ngāti Maniapoto, Ngāti Maru ki Taranaki, Samoa, using traditional television and more time using connected Rotuma) and John Tamihere (Ngāti Porou, Whakatōhea, devices than any other age group. Tainui). Whetu is an experienced broadcaster and screen industry leader who brings an impressive array of skills A $4.5 million capital expenditure programme over the including experience in front of and behind the camera, and next three years has also commenced with a significant as a writer. John has extensive experience in broadcasting, portion aimed at the replacement and upgrade of key governance and executive leadership as well as a lifelong broadcast and production equipment. Several key projects passion for Māori economic and social wellbeing. in the 2015-2016 year have included the digital archiving of programme content, the launch of several multi-platform With our new Directors, I am pleased to say the Board initiatives including FreeviewPlus and a mobile application, continues its approach of strong and robust governance Māori Television Connect, and the redevelopment of the together with a single-minded focus on the unique organisation’s intranet. kaupapa which has been entrusted to us. I acknowledge the contribution of all Board members whose dedication to In October 2015, the Board announced that Māori Television language revitalisation means they always give over and would remain in the greater Auckland region. Since then, a above the call of duty and I thank them for their energy, number of potential sites in Tāmaki Makaurau have been commitment and support. under consideration and a final decision is expected to be announced before the end of the 2016 calendar year. On behalf of the Board, I acknowledge our Executive team, headed by Paora Maxwell, and our dedicated and talented Acknowledgements staff. Thank you all for the ongoing enthusiasm, energy It is with great sadness that we acknowledge the passing of and commitment that you bring to your work and for the distinguished broadcaster and master communicator Whai contribution you have given the organisation throughout Ngata (Ngāti Porou, Te Whānau-a-Apanui) who helped the past year. Some significant challenges have come our pave the way for the establishment of Māori Television. way but you have not let any of these distract you from our Whai played a critical role in the development of a strong primary purpose – to promote and protect te reo Māori me and unique position for Māori broadcasting in the television ngā tikanga Māori. industry. He was instrumental in the establishment of Te Māori Television’s mandate presents us with a powerful Karere – subsequently leading TVNZ’s Māori department opportunity to share the Māori language and culture with until he retired in 2008 – and was a mentor to key talent audiences everywhere. Therefore, it is to our audience in the Māori broadcasting industry, many of whom have that our final thanks go for making this past year both worked or continue to work with our organisation. challenging and exciting at the same time. I acknowledge and commend the first of our two reporting We appreciate that you tune into Māori Television, stakeholders. Te Pūtahi Paoho, representing the Māori from wherever you are, to watch our distinctly Māori Electoral College, will come to the end of its tenure when programming. In doing so, you join us on a unique journey. the newly established Te Mātāwai takes over its role. Te In a global broadcasting landscape with a multitude of Pūtahi Paoho has set a high bar in its expectations for offerings, we truly value and encourage your ongoing Māori Television and our role in revitalising te reo Māori support. Tēnei te mihi ki a koutou katoa. me ngā tikanga Māori, and at the same time has provided a steadfast and steady anchor for our efforts. Māori Ka huri. Television pays tribute to the current serving members of the Māori Electoral College under the chairmanship of Willie Jackson, and to all who have served since its establishment – a job well done. Hon Georgina te Heuheu QSO I thank our shareholding Ministers, Hon Te Ururoa Flavell Chair

6 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 Annual Report of Māori Television Service 2016 7 TE PŪRONGO A TE TĀHUHU RANGAPŪ Chief Executive’s Report

Hei aku iti, hei aku rahi, ahakoa ki hea, ahakoa ko wai, ahakoa te ara pāpāho mai, tēnā tātou katoa. Tēnā tātou katoa i raro i ngā manaakitanga o te wāhi ngaro, nāna nei ngā mea katoa, tae rawa iho ki te reo ātaahua he mea whakawhiwhi ki ō tātou tīpuna, heke iho ki a tātou, ki a tātou tamariki mokopuna. Kei te mihi ki a koutou katoa te hunga whai whakaaro nui ki tō tātou reo rangatira. Ko tāu rourou, ko tāku rourou, ka ora te reo.

Ko te tau pūtea 2015-2016 te tau tuangahuru mā rua o nui tāngata ka tahuri ki a rātou waea ki te nanao ki ngā ngā pāhotanga a Whakaata Māori, waihoki, koinei te tau whakaaturanga. tuawaru o ngā pāhotanga i te hongere a Te Reo, ko ana Kei te marama ki a Whakaata Māori ki te mea ‘kia mana kaupapa kei roto katoa i te reo Māori; ka mutu ko tēnei te te kōrero’, nā reira, e eke ai mātou ki tētahi wāhi nui i te tau tuatoru i te whakaterenga o tā mātou pae tukutuku whakaoranga o te reo Māori he mea nui te whāinga kia hou a www.maoritelevision.com. ‘Reo Rua’ a Whakaata Māori a te tau 2020. Ki te takoto he Kia whai wāhi ahau i konei ki te tuku mihi ki ngā tāngata i rautaki reo Māori mā te hapori mahi o Whakaata Māori – e hāpai i te reo Māori, i whakapau o rātou kaha i roto i ngā kapi ai te reo Māori me ōna tikanga, te ao tawhito me te ao tau ki te hiki ake me te tiaki i te reo Māori. Whiwhi katoa tūroa – ka āhei tēnā me tēnā kia whai i tōna ake huarahi ki mātou te hunga kei te mahi i te rāngai pāpāho Māori – tae te mau i te reo Māori. rawa mai ki a mātou i Whakaata Māori – i ngā werawera i I nanao a Whakaata Māori ki ngā ratonga matihiko me heke i ngā rae o rātou te hunga hāpai i te reo. ngā pūnaha rorohiko hei ara pāho i te taha o ana hongere Ko tētahi tohu whakaatu i te ahurei o Whakaata Māori e rua, me te aha, ka noho a Whakaata Māori ka whakaata ko ngā momo kaupapa ka pāhotia e mātou, tāpiri atu ko i te maha o ngā momo hōtaka mā runga i ana hongere me ngā huinga tāngata nui pērā i Te Rā o Waitangi, Te Rā o ngā ara whakaata hou. Ko te whāinga i tēnei rautaki, kia Ngā Hōia, ngā whakataetae kapa haka, tangihanga hoki; tareka ai ngā kaupapa a Whakaata Māori e te hunga whai katoa ēnei kaupapa he āwhina ki te hunga mātakitaki kia pānga nui rawa atu ki a mātou, ara, te hunga mātaki mai uru ai ki te ao o te Māori. I te marama o Poutūterangi i – i ngā wā pai ki a rātou, i ngā wāhi katoa kei reira rātou, i te tau 2016 whai muri i ngā rangahau whānui whāroa, ka runga i ngā ara pāpāho e pai ai ki a rātou. whakaterengia e Whakaata Māori āna pāhotanga mō te Ko te mea nui, ka noho te whakatairangatanga me te tiaki tau pāho hou. i te reo Māori me ngā tikanga Māori ki waenganui pū o a Ko tētahi mea tino nui ki te hunga rangatahi kei ngā tau 19 mātou mahi. ki te 29 te pakeke, ko te noho wātea o a mātou pāhotanga i Hei kapinga, kīhai e mutu ngā mihi aroha me ngā maioha ngā wāhi, i ngā wā, i ngā ara pāpāho hoki ka pai ki a rātou, ki te hunga aroha nuitia ai te reo Māori. Kia kaha, kia toa, waihoki, i whakamātauria e mātou ētahi āhuatanga ka kia manawa nui. Kia mau ki te aka matua, kei hopu to ringa hāngai pū ki te hunga rangatahi e kōrerotia nei. Ko tētahi ki te aka taepa. take ko te ipurangi whakaea i ngā hiahia o te rangatahi. Nō te marama o Pipiri i te tau 2016 ka tū te pō tuatahi ki te whakawhiwhi i Ngā Tohu o Matariki – he kaupapa nā Whakaata Māori rāua ko Te Puni Kōkiri i whakatū – Paora Maxwell hei hāpai hei whakanui i te ao Māori ka piki ka eke ki ngā Chief Executive taumata ikeike. Ko te tūmanako ka tū tēnei kaupapa ia tau ki te tohu me te whakanui i ngā tāngata kei te whakapau aroha, kei te whakaputa i te wairua auaha, kei te noho pūmau, me kī, kei te hora i te pai ki o rātou ake hapori tae noa ki Aotearoa whānui. I whakaterengia a FreeViewPlus i te marama o Hōngongoi te tau 2015; me te aha, ka noho wātea ngā whakaatatanga i te kohinga a On Demand kei Whakaata Māori, ki te taha o ngā hōtaka pouaka whakaata a ētahi atu hinonga pāpāho kei te pāho kaupapa mō te kore utu; i tua atu ka whakairia hokitia ēnei kohinga hōtaka ki te ipurangi. Ko tētahi atu kaupapa hou i whakaterengia ko te pūmanawa tautono reo-rua a Māori Television Connect, i puta i te marama o Mahuru i te tau 2015, he aronga ki te

8 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 WAWATA Vision

Kia kaingākautia, kia kōrerotia, kia tautokona anō te reo Māori e ngā tāngata katoa o Aotearoa. Our vision is for the Māori language to be valued, embraced and spoken by all New Zealanders.

WHAKATAKANGA Mission

Ko te uaratanga o Whakaata Māori he tākoha ki te angitu-ā-Māori mā roto i te reo Māori me ngā tikanga Māori. Māori Television’s mission is to contribute to Māori success through the Māori language and Māori culture.

UARA Values

KIA TIKA Kia ngaio, kia mau ki ngā taumata tiketike. Be professional and maintain high standards.

KIA PONO Kia pono, kia tika, kia ngākau tapatahi. Be truthful, honest and act with integrity.

KIA AROHA Kia mataara, kia whakaaro nui ki tētahi atu. Be respectful and demonstrate empathy.

KIA MĀORI Kia mau kia ū ki te hōhonutanga o ngā tikanga Māori. Maintain and uphold core Māori values.

Annual Report of Māori Television Service 2016 9 TE PŪRONGO A TE TĀHUHU RANGAPŪ Chief Executive’s Report

The 2015-2016 financial year marked Māori Television’s 12th year on air, the eighth anniversary of 100 per cent Māori language channel Te Reo and the third year since our new-look website, www.maoritelevision.com, was relaunched. It also heralded one of the most significant Māori language milestones in recent times when Parliament passed the Māori Language Act, Te Ture mō te Reo Māori 2016. I would like to take this opportunity to pay tribute to the efforts of those te reo Māori advocates who have worked tirelessly over the years to promote and protect the Māori language; organisations such as Ngā Tamatoa and Ngā Kaiwhakapūmau i te Reo Māori, and people like Syd Jackson, Hana Te Hemara, Koro Dewes, Dr Ranginui Walker, Ernie Leonard, Whai Ngata, Huirangi Waikerepuru and countless others. All of us that have the privilege of working in the Māori broadcasting sector – including Māori Television – are here as a result of their energy and efforts.

On Air and Online Highlights Part of what makes Māori Television unique are the types of programmes that we screen and our coverage of major events such as Waitangi Day, ANZAC Day, kapa haka and tangihanga provide viewers with a direct connection to Māori culture. Following extensive research, Māori Television launched its new season of content in March 2016. Our flagship current affairs show, Native Affairs – hosted by Oriini Kaipara – showcased the best of investigative journalism in a new 30-minute time slot on Tuesday nights. A talent show that literally hits the streets to find its performers replaced the long-running Homai Te Pakipaki. Sidewalk Karaoke is already proving immensely popular with our audiences alongside other new entertainment shows such as Game of Bros where a dozen Polynesian males wearing little more than lavalavas compete in traditional games for the ultimate warrior title. Māori Television continued to screen some of the best probing and thought-provoking free- to-air documentaries. Of particular note this year were the documentaries What are we going to do about Mum? and Get Your Arse Off the Table. Our ANZAC Day 2016 coverage attracted strong interest and boosted audience numbers that week to the highest rating of the year – 924,671 viewers – so very close to our goal of one million viewers each week. The volume and frequency of content delivered live over the internet also increased in 2015- 2016 with regular simulcasts of shows including Native Affairs and the daily internet-only show Rereātea – Midday News Bytes on the Māori Television website. A commitment to live stream events of importance to Māori included the three-day, all-day coverage of the funeral for esteemed academic Dr Ranginui Walker. Through collaboration with iwi radio partners, Māori Television transmitted this important event to audiences in Aotearoa- New Zealand, Australia and other parts of the world. Ensuring our content is available where, when and how our viewers want to access it is particularly important for the rangatahi audience, aged 15 to 29 years, and several initiatives specifically targeting youth were put to the test. This included ‘web-first content’ where an entire series is made available online to cater to their on-demand viewing habits. A case in point was the exclusive online launch of The Palace featuring legendary Kiwi choreographer Parris Goebel and her talented dancers as they prepared for the World Hip Hop Dance Championships. Food has always been important in te ao Māori and Māori Television has mirrored that

10 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 significance with a regular stream of cooking-related alongside television programming of other free-to-air shows from Cam’s Kai to Whānau Bake-off. To capitalize broadcasters as well as online. A new platform for content, on this rich resource, we have launched New Zealand’s first FreeviewPlus gives viewers the ability to switch between live and only digital kai platform on our website, Te Wharekai television and our back catalogue via their FreeviewPlus- – a central hub for all our programming as well as recipes enabled television or set top box. It is available to viewers from the shows. within the existing Freeview|HD coverage area. Māori Television has also supported events as a media Another initiative was the launch of a bilingual mobile partner or broadcaster including Auckland’s first ever ‘app’, Māori Television Connect, in September 2015 in Tāmaki Herenga Waka Festival as well as the long-running response to the high demand and growth of smart phone- Polyfest and National Māori Sports Awards. enabled content users. The app features the latest news In June 2016, an inaugural Matariki Awards show – from the Māori Television newsroom, On Demand shows organised by Māori Television in partnership with Te and access to channel schedules. It also provides users with Puni Kōkiri – recognised and celebrated Māori excellence the ability to sign in and connect via the ‘Māori Television and success. The ceremony was live-streamed from the Share Your News’ function and to submit videos, photos or Auckland Museum with three half hour shows televised in text directly to the organisation. the weeks leading up to the event itself. It is intended that Māori Television is committed to the protection of the awards will become an annual event to acknowledge programme content created with funding from the Crown and celebrate individuals whose passion, innovation and and – as part of a major capital expenditure programme dedication is making a difference to their communities and – began to digitally archive this content during the 2015- to Aotearoa-New Zealand. 2016 year. The organisation also redeveloped its intranet with the aim of improving communication outcomes, Te Reo Māori Quality Assurance driving collaboration and encouraging co-operation. The Māori Television continued to work closely with Te Māngai new-look Te Aka Kūmara provides a platform for our staff Pāho on the quality assurance of our Māori language to better share ideas, information and resources. broadcasts. A full-time Te Reo Commissioner reviews and monitors the language quality and quantity requirements Māori Television now has a full complement of Executive of our productions and programmes. Every programme leaders, Te Kāhui Rangatira, in place to continue funded internally and by Te Māngai Pāho has a rigorous implementation of its strategy. Promotion and protection language plan attached to it while every external of te reo Māori me ngā tikanga Māori are at the apex of production is assigned a Māori language consultant who the model alongside the need to grow our audience share monitors language quality and quantity. and broadcast engaging and entertaining content.

Māori Television recognises that we need to ‘walk the talk’ if we are to play a leading role in Māori language revitalisation and has set an aspirational goal to become a ‘Reo Rua’ or dual language organisation by 2020. Paora Maxwell, Chief Executive

Māori Television’s Te Reo Department contracts an Dual Language Organisation independent language expert to review the language Māori Television recognises that we need to ‘walk the quality of pronunciation, vocabulary, grammar, euphony talk’ if we are to play a leading role in Māori language and the quality of subtitling on the news and current affairs revitalisation and has set an aspirational goal to become shows. An independent review is conducted every month a ‘Reo Rua’ or dual language organisation by 2020. As on a selection of programmes against the quality-indicator well as our role as a public broadcaster, Māori Television framework developed by Te Taura Whiri i te Reo Māori, and an average rating of 4.2 (out of 5) has been achieved. employs some 120 staff with low levels of Māori language proficiency and approximately 55 speakers of te reo Māori Digital Multi-Media Platform with varying levels of ability and understanding. The company-wide multi-platform operating model has An internal Māori language strategy – encompassing te supported strong growth in demand for our content reo Māori me nga tikanga Māori (language and culture), online. te ao tawhito (ancient knowledge) and te ao tūroa (the With the launch of FreeviewPlus in July 2015, Māori future) – will enable all staff to join and progress their own Television’s On Demand library of content is now available Māori language journey. The strategy will focus on training

Annual Report of Māori Television Service 2016 11 methods to suit the full range of learning levels through multiple mediums of delivery and with the aid of te reo Māori resources. We have augmented our Human Resources department to include a new Head of People, Language and Culture and a new Kaihautū Reo position. This expertise will support the development and implementation of strategies with the ultimate aim of the organisation not only being bilingual but also having a Māori ethos at the core of the organisational culture: ‘Kia wairua Māori ai a Whakaata Māori’. Several initiatives have also been established to support a performance-based culture including awards to acknowledge staff performance over and above the call of duty. Staff are nominated by their peers and recognised at quarterly Chief Executive Forums.

He Tāngata, He Tāngata I wish to acknowledge the special contribution made by all stakeholders in the development of Māori Television over the 2015-2016 financial year: Te Pūtahi Paoho members; our responsible Ministers; Te Puni Kōkiri, Te Māngai Pāho and NZ On Air; our community, business and government partners; and last, but not least, our passionate and hard-working independent production community. It is the people of any organisation who determine its success or otherwise and, in that respect, Māori Television is well placed. We are fortunate that our staff, management and Board share a unique spirit of commitment to ensure that we, as guardians of this taonga, fulfil the aspirations of those trailblazers who were at the forefront of its establishment. Māori Television has invested in a range of digital services and platforms alongside its traditional television channels and is now a multi-channel, multi-media broadcaster providing access to programming in a variety of ways. This strategy ensures that Māori Television is delivering to our most important stakeholder, our audience – whenever they want, wherever they may be, and by whatever connected device that they may have. Most importantly, the promotion and protection of te reo Māori me ngā tikanga Māori remains the cornerstone of our operations. Hei kapinga, kīhai e mutu ngā mihi aroha me ngā maioha ki te hunga aroha nuitia ai te reo Māori. Kia kaha, kia toa, kia manawa nui. Kia mau ki te aka matua, kei hopu to ringa ki te aka taepa.

Paora Maxwell Chief Executive

12 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 Annual Report of Māori Television Service 2016 13 NGĀ TOHU O MATARIKI 2016 Matariki Awards 2016

Te Tohu Tiketike o Matariki Supreme Award: Cliff Curtis Te Waitī Award for Te Reo and Tikanga: Scotty Morrison Te Tupu-a-Nuku Award for Business and Innovation: Miraka Limited Te Waitā Award for Sport: Nehe Milner-Skudder Te Tupu-a-Rangi Award for Health and Science: IronMāori Te Waipuna-a-Rangi Award for Arts and Entertainment: Cliff Curtis Te Ururangi Award for Education: Linda Smith Matariki Young Achievers Award: Ezekiel Raui

PICS TBC

14 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 NGĀ PUTANGA MATUA 2015-2016 Key Outputs 2015-2016

TE REO NGĀ HAORA KI TE AKO REO Language Language learning hours • Māori language in prime-time: • Māori Television and Te Reo Māori Television 2 ,239 Hours of language 54 Per cent learning content Target: 51 per cent Target: 1,850 hours

• Māori language across all hours: • Māori Television, Te Reo and Online Māori Television 60 Per cent 2 ,670 Hours of language Target: 51 per cent learning content Target: 2,100 hours • Māori language across all hours: Te Reo TE KOUNGA O TE REO 99 Per cent Target: 95 per cent Language quality • Average rating • Māori language in prime-time: Māori Television and Te Reo 4.2 Out of 5 75 Per cent Target: 4.0 Target: 70 per cent NGĀ WHAKAATURANGA RANGATAHI NGĀ HAORA KI POUAKA WHAKAATA Programmes for youth Television hours • Māori Television and Te Reo • Māori Television 1 ,545 Hours of programming 6,091 Hours of broadcast for young people Target: 1,200 hours Target: 6,026 hours • Māori Television, Te Reo and Online • Te Reo 3,001 Hours of broadcast 1 ,895 Hours of programming Target: 2,469 hours for young people Target: 1,400 hours • Māori Television and Te Reo 9,092 Hours of broadcast Target: 8,495 hours NGĀ PUNAHA PĀPĀHO Transmission platforms NGĀ HAORA IPURANGI • Māori Television and Te Reo Online hours - Digital satellite - Digital terrestrial • Online at 30 June 2016 2,218 Hours of programming - Sky Target: 1,250 hours • Online • Online at 30 June 2016 - Via online and broadband services 4 31 Hours of language - By connected mobile devices learning content - Freeviewplus hbbtv (new) Target: 250 hours

• Online at 30 June 2016 3 50 Hours of programming for young people Target: 200 hours

Annual Report of Māori Television Service 2016 15 TE MANA ARATAKI ME NGĀ WHAKAEANGA Governance and Accountability

The Board of Māori Television comprises seven non-executive directors. Four directors are appointed by Te Pūtahi Paoho and the remaining three by the Crown, represented by the Minister for Māori Development and the Minister of Finance. In the period under review, Cathy Dewes and Rikirangi Gage were replaced by Whetu Fala and John Tamihere.

Hon Georgina te Heuheu QSO Ngāti Tūwharetoa, Te Arawa, Ngāti Awa, Tūhoe (Crown appointment) Georgina te Heuheu is Chair of the Board of Māori Television and is also the Deputy Chair of the Tūwharetoa Māori Trust Board. Georgina has extensive experience in central government and public accountability, serving five terms as a Member of Parliament from 1996 until 2011, and was a Minister of the Crown in two National governments. Former parliamentary and ministerial roles included Associate Minister of Māori Affairs with delegated responsibility for Māori broadcasting, Minister for Courts, Associate Minister of Treaty Negotiations, Minister of Pacific Island Affairs and Minister for Disarmament and Arms Control. Georgina was the first Māori woman to be admitted to the High Court as a barrister and solicitor in 1972. She was a member of the Waitangi Tribunal for 10 years and has previously been a Director of the Māori Development Corporation, Te Papa and the Midland Regional Health Authority as well as a member of the University of Waikato council.

Whetu Fala Ngā Rauru, Ngāti Maniapoto, Ngāti Maru ki Taranaki, Samoa, Rotuma (Te Pūtahi Paoho appointment) Whetu Fala is a well-known figure in the screen and broadcasting industries both at home and abroad, and has an impressive array of skills including experience in front of and behind the camera, and as a writer. Since beginning her career with Television New Zealand in 1988, Whetu has produced, directed and edited hundreds of hours of television including drama, documentaries, reality and short films. Her work has screened in cinemas and on television including Māori Television, One, 2, TV3, Discovery Channel, SBS Australia and Can West Canada. As well as appearing in several feature films, Whetu has performed for Takirua Theatre as well as at the Sydney Opera House in Australia, Storytellers International in the USA and several Pacific Festivals of the Arts. She has a background in New Zealand theatre in education with a focus on presenting Māori and New Zealand writers’ works for schools.

Donna Ngaronoa Gardiner Ngāiterangi, Ngāti Ranginui, Ngāti Pūkenga (Crown appointment) Donna Gardiner (BA, MED, Dip Indigenous Diplomacy) has extensive experience in the public service, community development and whanau and hapū research as well as a lifelong commitment to Māori sustainable development. Significant areas of interest include indigenous governance, Māori political representation and Māori women as strategic leaders. Donna worked at New Zealand’s Māori Centre of Research Excellence, Ngā Pae o te Māramatanga (University of Auckland), from 2004 to 2015. Previously, she has been senior lecturer at the Auckland University of Technology (Te Ara Poutama) and manager of the Manukau outpost of Te Whare Wānanga o Awanuiārangi. Currently, Donna is a Doctoral Scholar at Te Whare Wānanga o Awanuiārangi and an Honorary Research Fellow with Ngā Pae o te Māramatanga.

Piripi Walker Ngāti Raukawa te Au ki te Tonga (Te Pūtahi Paoho appointment) Piripi Walker is one of the founders and former station managers of Te Upoko o Te Ika Radio – the oldest Māori radio station in New Zealand – and remains trustee and secretary of the station’s trust board. Piripi was secretary of the Wellington Māori Language Board, Ngā Kaiwhakapūmau i te Reo Māori, in a number of Waitangi Tribunal and court cases relating to Māori language, Māori television, Māori radio and the radio spectrum from 1984 to 1996. Later, he became one of the negotiators for the appropriate Treaty of Waitangi mechanisms in the establishment of Māori broadcasting. Piripi was the Director of Language Studies at Te Wānanga o Raukawa in Ōtaki from 1992 to 1996 and a member of the Electoral College for the Board of Māori Television – representing the national association of wānanga Māori – for 10 years until 2011. Over the past decade, he has worked as a writer, editor and translator. Piripi is currently vice-chairman of Ngā Kaiwhakapūmau i te Reo Māori.

16 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 Rhonda Kite Role of the Board Te Aupōuri, Ngāi Takoto (Crown appointment) The Board’s governance responsibilities, which are defined KIWA founder Rhonda Kite is now based in Abu Dhabi in in the Māori Television Service (Te Aratuku Whakaata the United Arab Emirates where she is developing new Irirangi Māori) Act 2003, include: business in the Middle East as Chief Executive and Director • the annual completion of a Statement of Intent of KIWA FZ-LLC. An award-winning producer with more which is to be agreed upon with the Minister for than 20 years’ experience in the production industry, Māori Development and the Minister of Finance (the Rhonda established KIWA in 2003 as a screen production ‘responsible Ministers’) and Te Pūtahi Paoho; company, pioneering and advancing technology for • t he annual completion of an Output Agreement which foreign-language dubbing solutions in the screen industry. is to be agreed upon with the responsible Ministers; She then built KIWA into a leading production house for experiential education digital books. Rhonda has served • the provision of quarterly reports against the Output on the boards of Ngā Aho Whakaari, Aotearoa Film and Agreement to the Chairperson of Te Pūtahi Paoho and the responsible Ministers; Television Awards, Ministry of Business Innovation and Employment’s Small Business Development Group and NZ • t he provision of an Annual Report to the Chairperson of On Air. Te Pūtahi Paoho and the responsible Ministers;

Waihoroi Shortland • t he delegation to the Chief Executive of responsibility Ngāti Hine, Te Aupōuri (Te Pūtahi Paoho appointment) for the efficient and effective administration of the day-to-day operations of Māori Television. Waihoroi Shortland is a writer, director, producer and actor who has more than 30 years’ experience working The Board concentrates on setting policy and strategy and in te reo Māori-related media. Early in his working life, holds regular meetings to monitor progress towards the Waihoroi was a clerk and interpreter for the Māori Land achievement of those strategic objectives and to ensure that the affairs of Māori Television are being conducted in Court in Te Taitokerau and a Māori Community Officer in accordance with the Board’s policies. Auckland, Pukekohe and Kaitaia. From there, he worked as a senior journalist on the TVNZ Māori language news The Board has two standing committees: programme Te Kārere and for Mana Māori Media. His film • Audit Committee credits include the lead in Tangata Whai Rawa o Wēneti During the year, members of the Audit Committee were – The Māori Merchant of Venice, a role for which he was Cathy Dewes, Rhonda Kite and Piripi Walker. Tiwana awarded Best Actor at the New Zealand Film Awards. He Tibble was appointed to the Audit Committee as the was also part of the cast of a te reo Māori adaptation of Audit Committee Chair on 17 October 2014 as an Shakespeare’s Troilus and Cressida at the Globe Theatre in independent, external member. His remuneration for London. Waihoroi has been a Commissioner for Te Taura the year ended 30 June 2016 was $8,400. Whiri i te Reo Māori and was recently appointed to the new • Remuneration Committee Māori language entity, Te Mātāwai. D uring the year, members of the Remuneration Committee were Georgina te Heuheu, Donna Gardiner John Tamihere and Rikirangi Gage. Susan Huria was appointed to Ngāti Porou, Whakatōhea, Tainui (Te Pūtahi Paoho the Remuneration Committee as the Remuneration appointment) Committee Chair on 17 July 2015 as an independent, John Tamihere has experience in broadcasting, governance external member. Her remuneration for the year ended and executive leadership. John is a former Member of 30 June 2016 was $4,429. Parliament (1999-2005) and served as a cabinet minister in the Labour Government from August 2002 until November Conflicts of Interest 2004. Born, raised and educated in Auckland, he has arts A Director who is interested in a transaction, or proposed and law degrees from the University of Auckland and transaction of, or other matters relating to Māori Television, has worked as a lawyer for the Māori Land Court and the must disclose the nature of the interest to the Chair of the Board. If the Director is the Chair, disclosure must be made Department of Māori Affairs. John is the Chief Executive to the Chairperson of Te Pūtahi Paoho and the responsible of the Waipareira Trust in west Auckland which provides Ministers. health and education services to Māori. He has been a high profile campaigner on behalf of urban Māori and is a Risk Management Mataawaka member of the Independent Māori Statutory The Board acknowledges that it is ultimately responsible Board. John has been the Chairman of the New Zealand for the management of risks to Māori Television. The Board Māori Rugby League Board and has also hosted radio and has charged the Chief Executive with establishing and television shows. operating a prudent risk management programme.

Annual Report of Māori Television Service 2016 17 Programme Standards The Board acknowledges Māori Television’s responsibility to comply with programme codes adopted by the Broadcasting Standards Authority. Māori Television has implemented procedures to ensure formal complaints are investigated and appropriate action taken.

Occupational Health and Safety Māori Television is committed to maintaining a safe and healthy working environment and has implemented a health and safety policy to promote prevention and best practice.

Good Employer Policy Māori Television continues to discharge its obligations as a good employer by providing fair employment contracts and policies which provide for proper conduct of the business and opportunities for team members to consult on matters of concern to them. The seven most senior positions of Chief Executive and six Heads of Departments have a 6:1 ethnic split between Māori and other. In terms of the organisation as a whole, Māori Television has a total staff base of 159 full-time employees. There is a 50 per cent – 50 per cent male to female gender split. In terms of the organisation as a whole Māori Television has a total staff base of 173 employees. Māori Television have a 50 per cent:50 per cent male to female gender split while the ethnic split between Māori and Other is approximately 72 per cent:28 per cent.

Māori Television screened 1,192 hours of local content in prime time in 2015, which was a 31 hour increase on the previous year... This channel once again screened much more local content during prime time than the other free-to-air broadcast channels monitored in this report. Local Content 2015, NZ On Air

18 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 TE TAUĀKĪ HAEPAPATANGA MŌ TE TAU I EKE I TE 30 O PIPIRI 2016 Statement of Responsibility For the year ended 30 June 2016

The Board and management of the Māori Television Service accept responsibility for the preparation of the Financial Statements and Statement of Service Performance and the judgements used in them. The Board and management of the Māori Television Service accepts responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial and non-financial reporting. In the opinion of the Board and management of the Māori Television Service, the Financial Statements and the Statement of Service Performance for the year ended 30 June 2016 fairly reflect the financial position and operations of the Māori Television Service.

Hon Georgina te Heuheu QSO Paora Maxwell Chairperson Chief Executive Date: 14 October 2016 Date: 14 October 2016

Annual Report of Māori Television Service 2016 19 TE PŪRONGO A TE KAITĀTARI KAUTE MOTUHAKE Independent Auditor's Report To the readers of Māori Television Service’s financial statements and statement of service performance for the year ended 30 June 2016.

The Auditor-General is the auditor of Māori Television Service (the Service). The Auditor-General has appointed me, Karen MacKenzie, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and the performance information of the Service on her behalf.

Opinion on the financial statements and the performance information We have audited: • t he financial statements of the Service on pages 24 to 40, that comprise the statement of financial position as at 30 June 2016, the statement of comprehensive revenue and expense, statement of changes in equity 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; and • the performance information of the Service on pages 15 and 22 and 23. In our opinion: • the financial statements of the Service: - present fairly, in all material respects: • its financial position as at 30 June 2016; and • its financial performance and cash flows for the year then ended; and - co mply with generally accepted accounting practice in New Zealand and have been prepared in accordance with Public Benefit Entity Standards. • the performance information: - presents fairly, in all material respects, the Service’s performance for the year ended 30 June 2016, including for each class of reportable outputs: • i ts standards of performance achieved as compared with forecasts included in the statement of intent for the financial year; • i ts actual revenue and output expenses as compared with the forecasts included in the statement of intent for the financial year; and - complies with generally accepted accounting practice in New Zealand. Our audit was completed on 14 October 2016. 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 Board and our responsibilities, and 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 performance information 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 performance information. 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 performance information. The procedures selected depend on our judgement, including our assessment of risks of material misstatement

20 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 of the financial statements and the performance our audit. Our responsibility arises from the Public Audit information, whether due to fraud or error. In making those Act 2001. risk assessments, we consider internal control relevant to the preparation of the Service’s financial statements Independence and performance information in order to design audit When carrying out the audit, we followed the independence procedures that are appropriate in the circumstances, requirements of the Auditor-General, which incorporate but not for the purpose of expressing an opinion on the the independence requirements of the External Reporting effectiveness of the Service’s internal control. Board. An audit also involves evaluating: Other than the audit, we have no relationship with or interests in the Service. • t he appropriateness of accounting policies used and whether they have been consistently applied; • the reasonableness of the significant accounting estimates and judgements made by the Board; • t he appropriateness of the reported performance Karen MacKenzie information within the Service’s framework for Audit New Zealand reporting performance; On behalf of the Auditor-General Auckland, New Zealand • the adequacy of the disclosures in the financial statements and the performance information; and • the overall presentation of the financial statements and the performance information. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and the performance information. Also, we did not evaluate the security and controls over the electronic publication of the financial statements and the performance information. We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Responsibilities of the Board The Board is responsible for preparing financial statements and performance information that: • comply with generally accepted accounting practice in New Zealand; • present fairly the Service’s financial position, financial performance and cash flows; and • present fairly the Service’s performance. The Board’s responsibilities arise from the Māori Television Service (Te Aratuku Whakaata Irirangi Māori) Act 2003. The Board is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and performance information that are free from material misstatement, whether due to fraud or error. The Board is also responsible for the publication of the financial statements and the performance information, whether in printed or electronic form.

Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements and the performance information and reporting that opinion to you based on

Annual Report of Māori Television Service 2016 21 TE TAUĀKĪ MAHI Statement of Service Performance

Non-Departmental Output Class Māori Television receives operational funding of $16.611 million from Māori Development. The description of the output class through which Māori Television receives operational funding is as follows: The Minister for Māori Development will purchase this class of outputs from Māori Television to: • e nable Māori Television to meet its statutory functions, including to contribute to the protection and promotion of te reo Māori me ngā tikanga Māori, through the provision, in te reo Māori and English, of a high quality, cost effective television service that informs, educates and entertains viewers, and enriches New Zealand’s society, culture and heritage; • pursue the outcomes in its 2015-2016 Statement of Intent; • support the operational costs of Māori Television; and • purchase and produce programmes to be broadcast on Māori Television. Performance measures for this class of outputs will be included in the following document: • M āori Television 2015-2016 Output Plan. Outputs will be provided at a total forecast cost of Outputs 1 and 2. Māori Television will deliver two outputs through this output class. A description, the cost and performance measures for each output are described opposite (actual performance shown in italics):

22 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 OUTPUT 1 - TELEVISION SERVICE OPERATIONS Description Performance Measures

To support the operational costs Quantity of Māori Television so that it can Broadcast a minimum of 7,700 hours of programming for the year. meet its statutory functions. Māori Television broadcast a total of 9,092 hours (2015: 8,272 hours) during the year.

Broadcast programmes mainly in te reo Māori. 73% (2015: 71%) of all programmes broadcast on Māori Television were in te reo Māori.

Cost 2016 Actual: $14.345 million 2016 Budget: $14.311 million 2015 Actual: $14.289 million

OUTPUT 2 - TRANSMISSION COVERAGE Description Performance Measures

Provide broadcast services that are Quantity technically available throughout Provide free-to-air transmission to at least 87 per cent of New Zealand and are accessible to New Zealand’s population via free-to-air digital terrestrial and as many people as is reasonably to 100 per cent of New Zealand via free-to-air digital satellite. and economically possible. Māori Television Channel: • Digital satellite 100% (2015: 100%) • Digital terrestrial 87% (2015: 87%)

Te Reo Channel: • Digital satellite 100% (2015: 100%) • Digital terrestrial 87% (2015: 87%)

Cost 2016 Actual: $2.266 million 2016 Budget: $2.300 million 2015 Actual: $2.322 million

Total Output Costs equals Total 2016 Actual: $16.611 million Revenue from the Crown per 2016 Budget: $16.611 million Statement of Comprehensive 2015 Actual: $16.611 million Revenue and Expenses

Annual Report of Māori Television Service 2016 23 TE TAUĀKĪ O NGĀ WHIWHINGA MONI WHĀNUI Statement of Comprehensive Revenue and Expense For the year ended 30 June 2016 Note Actual Budget Actual 2016 2016 2015 $000s $000s $000s Non-Exchange Revenue Revenue from the Crown 16,611 16,611 16,611 Te Māngai Pāho Production Funding 16,320 16,120 16,120 Other Production Funding 398 - 1,089 Exchange Revenue Advertising Revenue 986 1,450 1,065 Interest Revenue 497 552 555 Other Revenue 36 - 53 TOTAL REVENUE 34,848 34,733 35,493 Expenditure Personnel Costs 3 13,943 15,214 14,592 Depreciation & Amortisation Expense 4 2,342 1,937 1,740 Finance Costs 13 - - 17 Programme Costs incl. Amortisation 4 10,484 10,863 11,443 Other Operating Costs 4 8,039 7,174 7,804

TOTAL EXPENDITURE 34,808 35,188 35,596 Surplus / (Deficit) 40 (455) (103) Other Comprehensive Revenue - - - TOTAL COMPREHENSIVE REVENUE & EXPENSE 40 (455) (103)

TE TAUĀKĪ NEKENEKE TŪTANGA Statement of Changes in Equity For the year ended 30 June 2016 Note Actual Budget Actual 2016 2016 2015 $000s $000s $000s Balance at 1 July 19,552 19,672 19,655 Total Comprehensive Revenue and Expense 40 (455) (103) BALANCE AT 30 JUNE 19,592 19,217 19,552

The accompanying notes form part of these financial statements.

24 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 TE TAUĀKĪ TŪNGA PŪTEA Statement of Financial Position As at 30 June 2016 Note Actual Budget Actual 2016 2016 2015 $000s $000s $000s Public Equity General Funds 19,592 19,217 19,552 TOTAL PUBLIC EQUITY 19,592 19,217 19,552 Represented by: ASSETS Current Assets Cash and Cash Equivalents 5 3,392 11,499 4,653 GST Receivable 510 - 427 Bank Deposits 6 9,200 - 8,200 Trade and Other Receivables 7 3,603 601 3,074 Intangibles - Programme Rights 9a 2,811 4,193 1,980

TOTAL CURRENT ASSETS 19,516 16,293 18,334 NON-CURRENT ASSETS Property, Plant and Equipment 8 4,873 5,330 4,941 Intangibles - Computer Software 9b 257 814 385

TOTAL NON-CURRENT ASSETS 5,130 6,144 5,326

TOTAL ASSETS 24,646 22,437 23,660 LIABILITIES Current Liabilities Trade and Other Payables 10 2,770 2,048 2,258 Employee Entitlements 11 1,116 1,172 1,415 Unearned Income 12 58 - 4 TOTAL CURRENT LIABILITIES 3,944 3,220 3,677 Non Current Liabilities Provisions 13 1,110 - 431 TOTAL NON-CURRENT LIABILITIES 1,110 - 431 TOTAL LIABILITIES 5,054 3,220 4,108 NET ASSETS 19,592 19,217 19,552

The accompanying notes form part of these financial statements.

Annual Report of Māori Television Service 2016 25 TE TAUĀKĪ KAPEWHITI Statement of Cash Flows For the year ended 30 June 2016 Note Actual Budget Actual 2016 2016 2015 $000s $000s $000s Cash Flows from Operating Activities Cash was provided from: Receipts from Crown Revenue 16,611 16,611 16,611 Te Māngai Pāho Production Funding 16,120 16,120 16,120 Other Production Funding 295 - 958 Interest Received 490 552 510 Advertising Revenue 721 1,441 1,084 Other Income 35 - 72

Cash was applied to: Payments to Employees (14,242) (14,453) (14,219) Payments to Suppliers (9,851) (19,955) (10,215) Interest Paid - - 17 Goods and Services Tax (Net) (83) 45 11 NET CASH FROM OPERATING ACTIVITIES 14 10,096 361 10,949 Cash Flows from Investing Activities Cash was provided from: Sale of Property, Plant and Equipment 1 - - Cash was applied to: Investment in Term Deposit (1,000) - (1,000) Purchase of Property, Plant and Equipment (1,228) (1,603) (1,455) Purchase of Computer Software (210) - (266) Purchase of Programme Rights (8,920) (345) (8,877) NET CASH FLOWS FROM INVESTING ACTIVITIES (11,357) (1,948) (11,598) Net Increase/(Decrease) in Cash and Cash Equivalents (1,261) (1,587) (649) Cash and Cash Equivalents at the beginning of the year 4,653 13,086 5,302 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 3,392 11,499 4,653

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes. The accompanying notes form part of these financial statements.

26 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA Notes to the Financial Statements For the year ended 30 June 2016

1. Statement of Accounting Policies Māori Television is New Zealand dollars. The financial statements of Māori Television are for the (g) Forecast Financial Statements year ended 30 June 2016. The financial statements were Budget Figures authorised by the Board of Directors on 14 October 2016. T he budget figures are derived from the Statement of The following accounting policies that materially affect the Intent as approved by the Board at the beginning of the measurement of financial performance, financial position financial year. The budget figures have been prepared and cash flows have been applied: in accordance with PBE accounting standards, using (a) Reporting Entity accounting policies that are consistent with those T he Māori Television Service is a statutory corporation adopted by Māori Television for the preparation of the incorporated in New Zealand under the Māori Television financial statements. Service Act 2003 and is domiciled in New Zealand. (h) Foreign Currencies T he purpose of Māori Television is to contribute to the Transactions denominated in a foreign currency are protection and to promote te reo Māori and as such converted at the exchange rate ruling at the date of the objective is to provide a service to the public of the transaction. New Zealand as opposed to that of making a financial At balance date, foreign currency monetary assets and return. Accordingly, Māori Television has designated liabilities are converted at closing exchange rates and itself as a Tier 1 public benefit entity (PBE) for financial exchange variations arising from these transaction reporting purposes. items are included in the surplus or deficit. (b) Statement of Compliance (i) Revenue T hese financial statements have been prepared in R evenue from the Crown accordance with section 41 of the Māori Television Act M āori Television is primarily funded through revenue 2003 which includes the requirement to comply with received from the Crown which is restricted in its use for New Zealand generally accepted accounting practice the purpose of Māori Television meeting its objectives (“NZ GAAP”). as specified in the Statement of Intent and Output T he financial statements have been prepared in Plan. Māori Television considers there are no conditions accordance with and comply with Tier 1 PBE accounting attached to the funding and it is recognised as revenue standards. The financial statements have been at the point of entitlement. This is considered to be the prepared on a going concern basis and the accounting start of the appropriation period to which the funding policies have been applied consistently throughout the relates. period. Te Māngai Pāho Production Funding (c) Measurement Base M āori Television receives funding from Te Māngai Pāho T he financial statements have been prepared on an which is restricted in its use for the purpose of Māori historical cost basis. Television meeting its objectives as specified in the (d) Standards issued and not yet effective Agreement for Television Production Funding. Māori and not early adopted Television considers there are conditions attached to In 2015, the External Reporting Board issued Disclosure the funding and this funding is recognised as revenue Initiative (Amendments to PBE IPSAS 1), 2015 Omnibus when the conditions are satisfied. Amendments to PBE Standards, and Amendments Other Production Funding to PBE Standards and Authoritative Notice as a P roduction funding from Te Māngai Pāho and others Consequence of XRB A1 and Other Amendments. (e.g. NZ On Air) is recognised when earned. These amendments apply to PBEs with reporting periods beginning on or after 1 January 2016. The Advertising Revenue Māori Television Service will apply these amendments T he sale of advertising spots provided to third parties in preparing its 30 June 2017 financial statements. The on commercial terms are exchange transactions. Māori Television Service expects there will be no effect Advertising revenue is recognised when advertising in applying these amendments. spots have gone to air. (e) Changes in Accounting Policy Interest revenue T here have been no changes in accounting policies I nterest revenue is recognised when earned. Revenue is during the financial year. measured at the fair value of consideration received or receivable to air. (f) Functional and Presentation Currency T he financial statements are presented in New Zealand (j) Leases dollars and all values are rounded to the nearest Operating Leases thousand dollars ($’000). The functional currency of Leases that do not transfer substantially all the risks

Annual Report of Māori Television Service 2016 27 and rewards incidental to ownership of an asset to (o) Financial Instruments Māori Television are classified as operating leases. Lease Māori Television is party to financial instrument payments under an operating lease are recognised as arrangements including cash and bank, term deposits an expense on a straight-line basis over the term of the and accounts receivable as part of its every day lease in the surplus or deficit. operations, which are recognised in the Statement of Financial Position. Revenue and expenditure in relation (k) Cash and Cash Equivalents to all financial instruments are recognised in the surplus Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term, or deficit. Except for those items covered by a separate highly liquid investments, with original maturities of accounting policy, all financial instruments are shown three months or less. at their estimated fair value. (l) Bank deposits (p) Intangibles Investments in bank deposits are initially measured Software: at the amount invested. After initial recognition, A cquired computer software licenses are capitalised investments in bank deposits are measured at on the basis of the costs incurred to acquire and amortised cost using the effective interest method. bring to use the specific software. Costs associated At balance date, Māori Television assesses whether with maintaining computer software are recognised there is any objective evidence that an investment is as an expense when incurred. Costs associated with impaired. the development of the Māori Television website are capitalised. Costs associated with the maintenance F or bank deposits, impairment is established when of the Māori Television website are recognised as an there is objective evidence that Māori Television will expense when incurred. not be able to collect amounts due according to the original terms of the deposit. Significant financial Programme Rights: difficulties of the bank, probability that the bank will A ll programmes are valued at their cost to Māori enter into bankruptcy and default in payments are Television. Cost being defined as total cost paid by considered indicators that the deposit is impaired. Māori Television not including any Māori Television overheads. Third party contributions for individual (m) Trade and Other Receivables programmes are recorded in the Statement of T rade and other receivables are measured at amount Comprehensive Income as revenue. due, less any provision for impairment. Impairment of a receivable is established when there is an objective Under PBE IPSAS 31, Māori Television recognises the evidence that Māori Television will not be able to following types of programmes at cost and amortises collect amounts due according to the original terms of each programme over its economic useful life: the receivable. • Internally produced programmes (Note 9a T he amount of the impairment is the difference Programme Rights – Internal). between the asset’s carrying amount and the present • C ommissioned programmes (Note 9a Programme value of estimated future cash flows. The carrying Rights – External). amount of the asset is reduced through the use of an allowance account, and the amount of the loss is • Acquired programmes produced by third party recognised in the surplus or deficit. When the receivable producers (Note 9a Programme Rights – External). is uncollectible, it is written off against the allowance account for receivables. Overdue receivables that have An annual impairment assessment is carried out on all been renegotiated are reclassified as current (i.e. not intangibles recognised by Māori Television. past due). (q) Amortisation (n) Provisions T he carrying value of an intangible with a finite life is A provision is recognised for future expenditure of amortised on a straight-line basis over its useful life. uncertain amount or timing when: Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. • t here is a present obligation (either legal or The amortisation charge for each period is recognised constructive) as a result of a past event; in the surplus or deficit. • it is probable that an outflow of future economic T he useful lives and associated amortisation rates of benefits or service potential will be required to major classes of intangible assets have been estimated settle the obligation; and as follows: • a reliable estimate can be made of the amount of the obligation. Website 2 years P rovisions are measured at the present value of the Acquired computer software 3 years expenditure expected to be required to settle the obligation using a pre-tax discount rate that reflects Programme Rights current market assessments of the time value of money P rogrammes which primarily deal with current events, and the risks specific to the obligation. The increase in and/or transmitted within a very short-time of their the provision due to the passage of time is recognised production, and/or are unlikely to be replayed at any as an interest expense and is included in “finance costs”. future time (e.g. genres such as current affairs, sport,

28 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 live events) are fully amortised at the time of their first and annual leave earned but not yet taken at balance transmission. date. Programmes with longer shelf lives, that are intended C urrently there is no provision in employment contracts to be transmitted several times over a number of for long service leave or retirement leave. months or years, are amortised as they are broadcast. (v) Goods and Services Tax (GST) The amortisation formula may be varied depending A ll items in the financial statements are presented on the specifics of the programme but the default exclusive of GST, except for receivables and payables amortisation policy is based on 60% first play, 20% which are presented on a GST inclusive basis. Where second play and 20% third play. GST is not recoverable as input tax, then it is recognised (r) Property, Plant and Equipment and Depreciation as part of the related asset or expense. P roperty, plant and equipment is stated at historical cost T he net amount of GST recoverable from, or payable less accumulated depreciation and impairment losses. to the Inland Revenue Department (IRD), is included Depreciation is calculated on a straight line basis to as part of receivables or payables in the Statement of allocate the cost of the assets by equal instalments to Financial Position. an estimated residual value at the end of the economic life of the asset. Important depreciation periods are: The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is Computer Equipment 3 years classified as an operating cash flow in the statement of cash flows. Office Equipment 3-10 years Commitments and contingencies are disclosed Studio Equipment 5 years exclusive of GST. Studio Fitout 10 - 20 years (w) Statement of Cash Flows Building Soft Fitout & Office Cash and cash equivalents means cash balances on Equipment 5 -12 years hand, held in bank accounts, on-demand deposits and term deposits with original maturities of less than three Artworks 9 years months. Operating activities include cash received from all Depreciation methods, useful lives and residual values income sources of Māori Television and records the are reviewed at each financial year-end and adjusted cash payments made for the supply of goods and if appropriate. services. (s) Impairment of non-financial assets Investing activities are those activities relating to P roperty, plant and equipment and intangibles that the acquisition and disposal of property plant and have a finite useful life are reviewed for impairment equipment, intangibles and bank deposits greater than whenever events or changes in circumstances indicate three months. that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which F inancing activities are those activities relating to the asset’s carrying amount exceeds its recoverable changes in debt or capital structure. amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. (x) Liquidity Risk - Management of Liquidity Risk Liquidity risk is the risk that Māori Television will Value in use is depreciated replacement cost for an encounter difficulty raising liquid funds to meet asset where the future economic benefits or service commitments as they fall due. Prudent liquidity risk potential of the asset are not primarily dependent management implies maintaining sufficient cash, on the asset’s ability to generate net cash inflows the availability of funding through and an adequate and where Māori Television would, if deprived of the amount of committed credit facilities. Māori Television asset, replace its remaining future economic benefits aims to maintain flexibility in funding by keeping or service potential. committed credit lines available. If an asset’s carrying amount exceeds its recoverable (y) Capital Management amount, the asset is impaired and the carrying amount Māori Television’s capital is its equity, which comprise is written down to the recoverable amount. For assets retained earnings and is represented by net assets. not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit. (z) Interest in Jointly Controlled Entity The interest in a joint venture entity is accounted for (t) Trade and Other Payables T rade and other payables are measured at fair value. in the financial statements using the equity method of accounting. Under the equity method, Māori Television’s (u) Employee Entitlements share of the results of the joint venture are recognised in Employee entitlements that Māori Television expects the Statement of Comprehensive Revenue and Expense to be settled within 12 months of balance date are and the share of movements in reserves is recognised in measured at undiscounted nominal values based on the Statement of Financial Position. accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date (aa)Critical accounting estimates and assumptions

Annual Report of Māori Television Service 2016 29 In preparing these financial statements Māori Television • Māori Television does not have the right to add the has made estimates and assumptions concerning the programme to its archive. future. These estimates and assumptions may differ • Māori Television had no role in its conception or from the subsequent actual results. Estimates and production, and therefore no intellectual property assumptions are continually evaluated and are based rights. on historical experience and other factors, including expectations of future events that are believed to be • T he programme has no future usage in regard to reasonable under the circumstances. the promotion of te reo Māori (Māori language) me ngā tikanga Māori (Māori culture). Property, Plant and Equipment Useful Lives and Residual Value When these criteria are satisfied, Māori Television adjusts A t each balance date, Māori Television reviews the the cost and accumulated amortisation of the programmes. useful lives and residual values of its property, plant and In these instances, there is no impact on the surplus or equipment. Assessing the appropriateness of useful deficit or net book value of intangible assets. life and residual value estimates of property, plant (bb)Critical judgements in applying Māori and equipment requires Māori Television to consider Television’s accounting policies a number of factors such as the physical condition of Management has exercised the following critical the asset, expected period of use of the asset by Māori judgments in applying Māori Television’s accounting Television and expected disposal proceeds from the policies for the year ended 30 June 2016: future sale of the asset. Leases Classification An incorrect estimate of the useful life or residual value Determining whether a lease agreement is a finance or will impact the depreciation expense recognised in the an operating lease requires judgement as to whether surplus or deficit, and carrying amount of the asset in the agreement transfers substantially all the risks and the Statement of Financial Position. Māori Television rewards of ownership to Māori Television. minimises the risk of this estimation uncertainty by: Judgement is required on various aspects that include, • physical inspection of assets; but are not limited to, the fair value of the leased • asset replacement programmes; asset, the economic life of the leased asset, whether or not to include renewal options in the lease term and • review of second hand market prices for similar determining an appropriate discount rate to calculate assets; and the present value of the minimum lease payments. • analysis of prior asset sales. C lassification as a finance lease means the asset is Estimates in respect of certain items of studio fit-out recognised in the Statement of Financial Position as were revised in 2015. The useful lives for these assets property, plant and equipment, whereas for an operating were decreased to 10 – 20 years (see note 8). lease no such asset is recognised. Programme Rights Useful Lives and Residual Value Māori Television has exercised its judgment on the A t each balance date Māori Television reviews appropriate classification of property and equipment the values of its programme rights. Assessing the leases and has determined all of their lease arrangements appropriateness of the useful life and residual value are operating leases. estimates of programme rights is based on historical experience and the expected period of use of the programme right. Adjustments to useful lives are made when considered necessary. Programme Values M āori Television has exercised its judgement when determining that programmes with value in terms of te reo Māori (Māori language) me ngā tikanga Māori (Māori culture) are retained in the programme library. When assessing whether the programme should be derecognized from intangible assets, Māori Television considers the following factors: • The cost price has been fully amortised. • The broadcast rights period has expired. • The number of authorised plays has been reached. • M āori Television has no rights to any future exploitation of the programme for non-broadcast uses.

30 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 2. Taxation 5. Cash and Cash Equivalents Māori Television is exempt from Income Tax by virtue of 2016 2015 being registered as a charitable entity under the Charities $000s $000s Act 2005 and therefore no provision has been made in the financial statements. Cash at Bank and On Hand 3,392 4,653

3. Personnel Costs Short-term Deposits Maturing 3 Months or Less - - 2016 2015 from Date of Acquisition $000s $000s NET CASH AND CASH Salaries and Wages 13,482 14,135 EQUIVALENTS FOR Board Members’ fees 145 139 THE PURPOSES OF 3,392 4,653 THE STATEMENT OF Employer Contributions to CASH FLOWS 316 318 Defined Contribution Plans The carrying value of cash at bank and short-term deposits TOTAL 13,943 14,592 with maturity dates of three months or less approximates their fair value. 4. Expenditure 6. Bank Deposits 2016 2015 $000s $000s Investments are represented by bank deposits which have maturities greater than three months from the date of The net surplus is after charging for: acquisition.

Fees paid to Auditors Impairment Attest Audit Fees 81 79 There are no impairment provisions for bank deposits. No bank deposits are either past due or impaired (2015: nil). Other Operating Costs include: Fair Value The carrying amounts of investments approximate their Bad and Doubtful Debts 11 11 fair value.

Loss on Disposal - - Maturity Analysis and Effective Rental Expense on Interest Rates of Investments 1,116 1,122 Operating Leases The maturity dates and weighted average effective interest rates for bank deposits are as follows: Depreciation & Non-Programme Amortisation: 2016 2015 $000s $000s Property, Plant & 2,004 1,417 Equipment (Note 8) Bank Deposits with Maturities greater than 3 months 9,200 8,200 Impairment of Property, and less than 12 months Plant & Equipment - - (Note 8) TOTAL BANK DEPOSITS 9,200 8,200 Computer Software (Note 9b) 338 323 Weighted Average 3.48% 4.50% Effective Interest Rate TOTAL DEPRECIATION & NON-PROGRAMME 2,342 1,740 AMORTISATION

Programme Costs incl. Amortisation Programme Amortisation 8,112 9,347 (Note 9a)

Provision for Write 99 165 Off (Note 9a)

Programme Overhead Costs 2,273 1,931

TOTAL PROGRAMME COSTS 10,484 11,443 INCL. AMORTISATION

Annual Report of Māori Television Service 2016 31 7. Trade and Other Receivables 2016 2015 $000s $000s

Receivables 372 197

Less Provision for Impairment (11) (11)

Prepayments 405 303

TMP Receivable 2,585 2,562

Other 281 229

TOTAL 3,603 3,077 Exchange Transactions 1,047 717

Non Exchange Transactions 2,556 2,357

TOTAL 3,603 3,074

The carrying value of receivables approximates their fair value. As at 30 June 2016 and 2015 all overdue receivables have been assessed for impairment and appropriate provisions applied as detailed below:

2016 2015 $000s $000s Gross Impairment Net Gross Impairment Net

Not past due 231 - 231 44 - 44

Past Due 1-30 days 92 - 92 97 - 97

Past Due 31-60 days 29 - 29 36 - 36

Past Due 61-90 days 9 - 9 6 - 6

Past Due > 91 days 11 (11) - 13 (11) 2

TOTAL 372 (11) 361 196 (11) 185

The provision for impairment has been calculated based on expected losses for Māori Television pool of debtors. Expected losses have been determined based on an analysis of Māori Television’s losses in previous periods and review of specific debtors. Movement in the provision for impairment of receivables is as follows:

2016 2015 $000s $000s

Balance at 1 July (11) -

Additional Provisions (11) (11) made during the year

Receivables written off 11 - during the period

TOTAL (11) (11)

32 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 8. Property, Plant and Equipment Movements for each class of property, plant and equipment are as follows:

Office Computer Studio Studio Building Artwork Total Equipment Equipment Equipment Fitout Soft Fitout

Cost $000s $000s $000s $000s $000s $000s $000s

Balance at 1 July 2014 546 1,378 14,641 6,211 976 175 23,927

Additions 18 426 1,012 - - - 1,456

Disposals ------

BALANCE AT 30 JUNE 2015 546 1,804 15,653 6,211 976 175 25,383

Balance at 1 July 2015 546 1,804 15,653 6,211 976 175 25,383

Additions 20 81 1,128 708 - - 1,937

Disposals - - (1) - - - (1)

BALANCE AT 30 JUNE 2016 584 1,885 16,780 6,919 976 175 27,319

Accumulated Depreciation

Balance at 1 July 2014 393 1,314 12,371 3,993 938 16 19,025

Depreciation Expense 51 121 874 343 8 20 1,417

Impairment Loss ------

Depreciation on Disposals ------

BALANCE AT 30 JUNE 2015 444 1,435 13,245 4,336 946 36 20,442

Balance at 1 July 2015 444 1,435 13,245 4,336 946 36 20,442

Depreciation Expense 56 157 1,014 749 8 20 2,004

Impairment Loss ------

Depreciation on Disposals ------

BALANCE AT 30 JUNE 2016 500 1,592 14,259 5,085 954 56 22,446

Carrying Amounts

At 1 July 2014 153 64 2,270 2,218 38 159 4,902

At 30 June and 1 July 2015 120 369 2,408 1,875 30 139 4,941

AT 30 JUNE 2016 84 293 2,521 1,834 22 119 4,873

There are no restrictions over the title of property, plant and equipment. No property, plant and equipment assets are pledged as security for liabilities. Property, plant, and equipment in the course of construction is nil (2015: $nil).

Annual Report of Māori Television Service 2016 33 9a. Intangibles - Programme Rights

Programme Programme Rights - Rights - Total Internal External $000s $000s $000s Year ended 30 June 2016 At 1 July 2015 net of accumulated amortisation 686 1,294 1,980 Additions 6,965 2,079 9,044 Amortisation charge (6,427) (1,687) (8,114) 1,224 1,686 2,910 Less Provision for Write Off - (99) (99) CLOSING NET BOOK VALUE 1,224 1,587 2,811

As at 30 June 2016 Cost 112,353 5,140 117,493 Accumulated Amortisation (111,129) (3,454) (114,583) Less Provision for Write Off - (99) (99)

TOTAL 1,224 1,587 2,811

Programme Programme Rights - Rights - Total Internal External $000's $000's $000's Year ended 30 June 2015 At 1 July 2014 net of accumulated amortisation 1,221 1,399 2,620 Additions 7,182 1,690 8,872 Amortisation charge (7,717) (1,630) (9,347) 686 1,459 2,145 Less Provision for Write Off - (165) (165) CLOSING NET BOOK VALUE 686 1,294 1,980

As at 30 June 2015 Cost 105,388 5,769 111,156 Accumulated Amortisation (104,702) (4,064) (108,765) Less Provision for Write Off - (411) (411) TOTAL 686 1,294 1,980

The balances for individual programme rights are the net No intangible assets are pledged as security for liabilities. sum of accumulated costs to date less the amounts charged Externally acquired programme rights are subject to the for amortisation as those programmes are broadcast. The copyright restrictions of the distributing/production entity. amounts charged for amortisation are based on an average Heritage Assets expected cost over all the episodes in a series, whereas the Māori Television Service considers its fully amortised Māori costs of producing each individual episode in that series programming as a heritage asset because of the historical can vary considerably. It is expected that at the end of the and cultural qualities held within that programming that useful life of the programme that the amortisation charge contributes to the knowledge and culture of Te Reo Māori. will fairly reflect the final cost of the programme but this The intrinsic cultural value of these assets is invaluable and can give rise to credit balances for programme rights at there is insufficient information to assist in valuing these any moment in time, including balance date. This is most assets therefore the carrying value of these assets is nil. common with internally produced programme series which The gross costs and gross amortisation are not written off are still only part way through production at balance date. and are maintained to recognise the investment made in There are no restrictions over the title of intangible assets. this programming.

34 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 9b. Intangibles - Computer Software In respect of the Newmarket leased premises, Māori Television is required at the expiry of the lease term to 2016 2015 $000s $000s make good the property in accordance with the terms of the lease. The cash flows associated with the non-current At 1 July net of accumulated 385 442 portion of the lease make-good provision are expected to amortisation occur in June 2022. Additions 210 266 Discounting has been used to measure the value of this Disposals - - provision. The carrying amount of the provision has Amortisation charge (338) (323) increased this year to reflect the passage of time and the Amortisation on disposals - - additional provision made recognises this increase as an interest expense. CLOSING NET BOOK VALUE 257 385 14. Reconciliation of the Net Surplus from Operations with the Net Cash Flows from At 30 June Operating Activities Cost 2,682 2,472 2016 2015 Accumulated Depreciation (2,425) (2,087) $000s $000s TOTAL 257 385 Net Surplus / (Deficit) 40 (103) for the Year 10. Trade and Other Payables Add/(Less) Non Cash Trade and other payables are non-interest bearing and are Movements normally settled on 30-day terms, therefore the carrying value approximates their fair value. Depreciation - Property, 2,004 1,417 Plant & Equipment 2016 2015 Impairment of Property, $000s $000s - - Plant & Equipment Trade Creditors 1,565 1,082 Amortisation - 8,114 9,347 Accrued Expenses 1,205 1,176 Programme Rights TOTAL 2,770 2,258 Provision for Write Off 99 165 - Programme Rights 11. Employee Entitlements Amortisation - 337 323 2016 2015 Computer Software $000s $000s Provision for Doubtful Debts 11 11 Annual Leave 704 805 / Bad Debts Written Off Accrued Wages 396 574 Make good provision (29) 17 ACC Levies 16 36 interest adjustment TOTAL 1,116 1,415 10,576 11,177

12. Unearned Revenue Add/(Less) Movements 2016 2015 in Working Capital $000s $000s Less (Increase)/Add Advertising Sales 58 4 Decrease in Prepayments (103) (171) & Other Receivables TOTAL 58 4 Less (Decrease)/Add All unearned revenue has arisen from Increase in Payables & 212 71 exchange transactions. E’ee Entitlements 13. Provisions - Lease Make Good Less (Increase)/Add (560) (31) Decrease in Receivables 2016 2015 $000s $000s Less (Increase)/Add Decrease (83) 11 in GST Receivable Opening Balance 431 414 Less (Decrease)/ Add Additional Provisions Made 708 - 54 (108) Increase in Unearned Income Discount Unwind on Provision (29) 17 NET CASH FLOWS FROM 10,096 10,949 TOTAL 1,110 431 OPERATING ACTIVITIES

Annual Report of Māori Television Service 2016 35 15. Related Party Transactions and Key Management Personnel Māori Television has been established as a body corporate with perpetual succession whose key stakeholders are the Crown and Māori. The Government is the principal source of funding for Māori Television. Māori Television enters into transactions with government departments, state-owned enterprises and other Crown entities. Those transactions that occur within a normal supplier or client relationship on terms and conditions no more or less favourable than those which it is reasonable to expect Māori Television would have adopted if dealing with that entity at arm’s length in the same circumstances have not been disclosed as related party transactions. During the year, all related party transactions were entered into on an arm’s length basis. This was also the case in 2015.

Key Management Personnel Remuneration

2016 2016 2015 2015 $000s FTE $000s FTE Board Members Renumeration 145 139 Full-time equivalent members 1.62 1.85 Executive Group Renumeration 1,374 1,574 Full-time equivalent members 7.00 9.00 Senior Management Renumeration 1,496 1,513 Full-time equivalent members 15.00 16.00 TOTAL KEY MANAGEMENT 3,015 3,226 PERSONNEL REMUNERATION TOTAL FULL TIME 23.62 26.85 EQUIVALENT PERSONNEL

The full-time equivalent for Board members has been determined based on the frequency and length of Board meetings and the estimated time for Board members to prepare for meetings. Directors’ and Officers’ Indemnity Insurance The company has arranged Directors’ and Officers’ liability insurance cover with QBE Insurance (International) Limited for $10m ($7.5m for loss and $2.5m for defence costs). This cover is effected for all Directors and Officers of Māori Television.

36 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 16. Employees’ Remuneration The following numbers of employees received remuneration and other benefits in their capacity as employees the total value of which exceeded $100,000 for the year.

2016 2015 No. No. $100,001 - $110,000 9 9 $110,001 - $120,000 6 7 $120,001 - $130,000 2 - $130,001 - $140,000 1 - $140,001 - $150,000 1 3 $170,001 - $180,000 2 1 $180,001 - $190,000 - 1 $190,001 - $200,000 2 1 $200,001 - $210,000 - 1 $210,001 - $220,000 1 - $220,001 - $230,000 1 - $240,001 - $250,000 - 1 $270,001 - $280,000 1 - $340,001 - $350,000 - 1

17. Board Fees Board members earned the following fees during the period:

2016 2015 $000s $000s

Cathy Dewes 18 18 Donna Gardiner 18 18 Georgina te Heuheu 36 36 Piripi Walker 18 18 Rhonda Kite 18 18 Rikirangi Gage – Finished 31 March 2016 14 18 Waihoroi Shortland 18 3 John Tamihere – Started 31 March 2016 5 - Whetu Fala- Started 28 June 16 - - Tahu Potiki - 10 TOTAL 145 139

Annual Report of Māori Television Service 2016 37 18. Loan Facilities Non-Cancellable Operating Lease Commitments Māori Television has a letter of credit facility with the bank for $200,000. At balance date this facility was un-utilised. 2016 2015 $000s $000s

19. Employment Matters Not later than one year 1,108 975 During the year, Māori Television made 5 (2015: 4) Later than one not severance payments to employees totalling $86,557 102 877 later than 2 (2015: $138,300). Later than 2 but not 66 24 20. Post Balance Date Events later than 5 After balance date, the Māori Television Service entered Later than 5 years - - into a non-cancellable contract to lease premises for a period of 15 years with the option to renew the lease for TOTAL 1,276 1,876 a further 6 years. The annual rental under the lease will be reviewed every 2 years. The agreement is not included 22. Contingencies in the statement of commitments because it was entered into after balance date. Contingent Assets There are no contingent assets at year end 30 June 2016 There have been no other significant events after (2015: nil). balance date. Contingent Liabilities There is one legal proceeding against Māori Television 21. Commitments and Operating Leases Service in relation to a defamation claim. As at year- end the potential liability to Māori Television Service is 2016 2015 unknown (2015: nil). $000s $000s

Transmission and 23. Interest in Joint Venture 2,093 5,970 Satellite Linking Māori Television has a 17.7 per cent interest in FreeView Limited, an incorporated joint venture with Television New Programme - Internal 3,425 3,773 Zealand, TVWorks Limited, Māori Television Service and Programme - External 417 726 Radio New Zealand Limited. FreeView Limited is audited by Ernst Young and has a balance date of 30 June. TOTAL 5,935 10,469 Māori Television Service holds 177 shares in Freeview Transmission and Satellite Linking Limited for which the share capital is uncalled and unpaid. Māori Television has entered into long-term agreements The carrying amount of the company’s investment in with Television New Zealand, Kordia and JDA for the FreeView Limited is $nil ($2015: nil). transmission of its programmes on the digital satellite and The following table provides summarised financial digital terrestrial platforms. information relating to the FreeView Limited joint venture:

2016 2015 Extract from the joint venture $000s $000s Statement of Financial Position Not later than one year 1,181 1,647 2016 2015 Later than one not $000s $000s 716 1,573 later than 2 Current Assets 745 904 Later than 2 but not 196 2,080 Non-Current Assets 637 622 later than 5 TOTAL ASSETS 1,382 1,526 Later than 5 years - 670 Current Liabilities 1,382 1,526 TOTAL 2,093 5,970 Non-Current Liabilities - - Programme Production TOTAL LIABILITIES 1,382 1,526 Production of a number of programmes had commenced but were not completed at year end. Expenditure required NET ASSETS - - to complete production is recorded as a commitment. Māori Television’s share of Programme Acquisitions joint venture’s net assets - - Contracts for the purchase of broadcast rights in certain programmes have been entered into but full payment has not yet been made and is not yet due, pending certain events, e.g. delivery of materials, first transmission, etc.

38 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016 Extract from the joint venture Statement 25. Financial Instruments of Comprehensive Income Māori Television is risk averse and seeks to minimise its 2016 2015 exposure from its treasury activities. Its policies do not $000s $000s allow any transactions which are speculative in nature to be entered into. Income 2,422 4,204 Credit Risk Expenses 2,422 4,204 Credit risk is the risk that a third party will default on its NET SURPLUS - - obligation to Māori Television, causing Māori Television to incur a loss. Financial instruments which potentially subject Māori Television’s share of the company to risk consist principally of cash, short term joint venture’s net surplus - - investments and trade receivables.

There are no contingent liabilities relating to Māori Māori Television has a minimal credit risk in its holdings Television’s interest in the joint venture other than of various financial instruments. These instruments include as disclosed and no contingent liabilities or capital cash, bank deposits and accounts receivable. commitments of FreeView Limited itself. Māori Television believes that these policies reduce the risk of any loss which could arise from its investment activities. 24. Significant Budget Variances Māori Television does not require any collateral or security a) Other Production Funding Income. This type of income to support financial instruments. is unpredictable in nature and is difficult to budget for There is no significant concentration of credit risk. because of the uncertainty involved in determining what will be received in any given financial year. The maximum amount of credit risk for each class is the However, the extra production income received is carrying amount in the Statement of Financial Position. matched by a corresponding increase in the cost of Liquidity Risk programme production. Liquidity risk is the risk that Māori Television will encounter (b) Advertising income this year was lower than budget difficulty raising liquid funds to meet commitments as and last year with lower ratings being the main factor they fall due. Prudent liquidity risk management implies for the decrease in income. New Zealand’s television maintaining sufficient cash, the availability of funding broadcasting industry has experienced a decrease in through an adequate amount of committed credit the number of people watching television. The viewing facilities and the ability to close out market positions. audiences are becoming fragmented with the number Māori Television aims to maintain flexibility in funding by of platforms available to watch content becoming keeping committed credit lines available. more varied. Currency Risk (c) T he favourable variance in Personnel Costs compared Currency risk is the risk that the value of a financial to the current year budget and last year actual is as a instrument will fluctuate due to changes in foreign result of actively managing our staff count. exchange rates. (d) An unfavourable variance in Depreciation and Amort At balance date, Māori Television had exposure to currency compared to current year budget and last year actual risk in regard to the purchase of television programmes is as a result of increase in make good provision for from overseas which are primarily denominated in US premises. dollars (see the Commitments Note). Māori Television does not enter into forward exchange contracts to hedge any (e) The favourable variance in Programme Management exposure. Costs compared to last year actual is a result of a decrease in amortisation due to wash up of net Interest Rate Risk favourable variances in direct production costs for in- Interest rate risk is the risk that the value of a financial house programmes. instrument will fluctuate due to changes in market interest rates. There are no interest rate options or interest rate (f) The Cash and Cash Equivalents budget include Term swap options in place as at 30 June 2016. Deposits of $8,2m. The Board does not consider that there is any significant (g) Addition in Property, Plant and Equipment was lower interest exposure on Māori Television’s investments. than budgeted. (h) No provision was made for make good provision in the budget.

Annual Report of Māori Television Service 2016 39 25a. Financial Instrument Categories Credit quality of financial assets The accounting policies for financial instruments have The credit quality of financial assets that are neither past been applied to the line items below: due nor impaired can be assessed by reference to Standard and Poor’s credit ratings (if available) or to historical 2016 2015 information about counterparty default rates: $000s $000s 2016 2015 FINANCIAL ASSETS $000s $000s

Loans & Receivables Counterparties with credit ratings: Cash & Cash Equivalents 3,392 4,653 Cash at Bank and Bank Deposits 9,200 8,200 Bank Deposits

Trade and Other Receivables 3,198 2,770 AA- 12,592 12,853

TOTAL LOANS & TOTAL CASH AT BANK 15,790 15,623 12,592 12,853 RECEIVABLES AND BANK DEPOSITS

2016 2015 $000s $000s Counterparties without FINANCIAL LIABILITIES credit ratings:

Financial Liabilities Debtors and Other at Amortised Cost Receivables Existing counterparty with Trade and Other Payables 2,770 2,258 3,198 2,770 no defaults in the past TOTAL FINANCIAL TOTAL DEBTORS AND LIABILITIES AT 2,770 2,258 3,198 2,770 AMORTISED COST OTHER RECEIVABLES

25b. Financial Instrument Risks Maximum exposure to credit risk The maximum exposure for each class of financial instrument is as follows:

2016 2015 $000s $000s

Cash at Bank and 12,592 12,853 Bank Deposits

Debtors and Other 3,198 2,770 Receivables

TOTAL CREDIT RISK 15,790 15,623

40 TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2016