MŌ TE TAU I EKE I TE 30 O PIPIRI 2016 Annual Report · 2017. 7. 25. · o Paengawhāwhā i te tau 2016. Ka whakatakoto i te Ture hou he huarahi hei whai tahi mā te Karauna me ngā

TE PŪRONGO Ā-TAUMŌ TE TAU I EKE I TE 30 PIRIPI 2016

TE PŪRONGO Ā-TAUMŌ TE TAU I EKE I TE 30 O PIPIRI 2016

Annual ReportFor the year ended 30 June 2016

TE RĀRANGI UPOKOContentsNGĀ TIROHANGA A TE HEAMANA ..................................................................................................... 02Chair’s Review

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

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

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

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

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

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

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

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

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

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

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA ...................................................................... 27Notes to the Financial Statements

Annual Report of Māori Television Service 2016 1

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORIMŌ 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 FinanceIn 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 QSOChair

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 20162

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 MĀORIKei 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

NGĀ TIROHANGA A TE HEAMANA Chair’s ReviewKa 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.


a Te Mātāwai ki te tohu i ngā kaiwhakahaere tokowhā ki te Poari o Whakaata Māori.

Kīhai e wawe te pā mai o te Ture ki a mātou mahi. Heoi, ko te mea kē, ka kaha ake ngā mahi ki te whakaora i te reo Māori i te whakahiatonga o ngā rautaki reo Māori motuhake e rua kiia ai he maihi. Ka hāngai pū te Maihi Māori – ko Te Mātāwai 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 kawenga o te Karauna kua takoto ki te Maihi Karauna, he rautaki ka hora ki ngā tāngata katoa o Aotearoa.

Kei te hihiko katoa i a Whakaata Māori ki te mahi ngātahi me ētahi atu, ki te whai wāhi hoki ki te whakahiatotanga o te rautaki a Maihi Karauna. Whāia, kei te pūmau a Whakaata Māori kia mahi ngātahi me ngā pūtahi reo Māori ki te whakapiki i te tokomaha kei te kōrero Māori, ki te hiki ake hoki i ngā whaiaro o ngā tāngata katoa o Aotearoa mō te reo Māori ka kōrerotia.

NGĀ MIHI NUIKei te whakaae atu kei te mihi atu au ki te rōpū tuatahi o ngā rōpū e rua hei tā te ture, me mātua whai pūrongo i a mātou. Ko Te Pūtahi Paoho te kanohi o te Māori Electoral College, i ōna rā, heoi, kua eke te wā ki a ia, kua whakatūria he rōpū hou ko Te Mātāwai hei whakakī i tērā tūranga. Nei te mihi a Whakaata Māori ki ngā mema o mua me ngā mema ināianei – tino pai rawa atu ngā mahi.

Ka mihi ki ō mātou Minita whai pānga, a Hon Te Ururoa 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.

Ka tahuri ahau i konei ki te mihi ki ngā Kaiwhakahaere e rua

i rihaina i ō rāua nohoanga: ko Tākuta Cathy Dewes ONZM (Te Arawa, Ngāti Porou) me Rikirangi Gage (Te Whānau-a-Apanui, Ngāti Porou, Whakatōhea, Ngāti Maniapoto). Hei whakakī i ngā whawharua i ngā Kaiwhakahaere ka pōhiri mātou i a Whetu Fala (Ngā Rauru, Ngāti Maniapoto, Ngāti Maru ki Taranaki, Hāmoa, Rotuma) rāua ko John Tamihere (Ngāti Porou, Whakatōhea, Tainui).

Ka mihi ahau ki ngā mema katoa o te Poari mō tō rātou whakaaro nui ki te oranga o te reo; hei ngā wā katoa ka 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 i a Paora Maxwell, tae rawa atu ki ngā kaimahi; kātahi te hunga pūmau, te hunga koi ko ngā kaimahi.

Nā te mana kōkiri i a Whakaata Māori, kua tūwhera, kua wātea te whakawhiwhi i te reo Māori me ngā tikanga Māori ki te hunga mātaki mai, ahakoa kei hea rātou. Nā reira, e tika ana ko te mihi whakamutunga ki te hunga mātakitaki mai, mō ngā werowero mai me te wairua hihiko tērā ka puta.

Kāore he ārikarika o ngā mihi ki a koutou ka hono ki a Whakaata Māori ki te mātaki i ngā hōtaka mutunga mai o te Māori te āhua. Haere mai, ka haere tātou i tētahi haerenga mīharo. Kapi katoa te ao i te huhua o ngā ara pāpāho kei te pāho i ngā tini kaupapa, i runga i tērā āhuatanga ka whakanui mātou i a koutou e mātaki mai ana, e tautoko ana i te kaupapa. Ki a koutou katoa, ngā mihi.

Ka huri.



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 MāoriMāori 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.

NGĀ TIROHANGA A TE HEAMANA Chair’s Review

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

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.

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.


While the Act itself does not immediately impact on our operations, it does provide a significantly strengthened approach to Māori language revitalisation through the development of two separate Māori language strategies. The Maihi Māori strategy – led by Te Mātāwai – will focus on Māori, iwi, hapū, whānau and community language revitalisation while the Crown’s responsibility at a national level is the Maihi Karauna strategy which will target all New Zealanders.

Māori Television is a key enabler in the delivery of these distinct but complementary strategies with a specific focus on taking the language into homes via television and multi-platform devices, thereby increasing the use of te reo Māori among whānau and families. We are excited about the opportunities to work together in a more coordinated way and to contribute to the development of the Maihi Karauna strategy.

In the meantime, Māori Television is committed to working collaboratively with Māori language agencies including Te Taura Whiri i te Reo Māori, Te Puni Kōkiri and Te Māngai Pāho as well as the wider Māori language sector to increase the number of te reo Māori speakers and to improve the attitudes of all New Zealanders towards the use and unique position of Māori as this country’s indigenous language.

To this end, a research project has begun in partnership with Te Māngai Pāho which looks at Māori Television’s impact – and the impact of broadcasting – on Māori language revitalisation. This project will enable us to understand and, more importantly, measure our effect on attitudes towards and use of te reo Māori. It is envisaged that the research will provide actionable findings that will drive better outcomes and return on investment for Māori language revitalisation via broadcasting, and will also be used to inform the development of the Government’s new Māori language strategy.

I am confident that we have the leadership and strategy to engage and grow audience numbers and, in doing so, demonstrate the contribution that Māori Television makes in fulfilling its public service responsibility to enrich New Zealand society, culture and heritage.

Broadcasting Year in ReviewAn organisational realignment, a new strategic direction and development of a new business model in 2015 has resulted in a growth-focused approach across Māori Television to support our vision – for te reo Māori to be valued, embraced and spoken by all New Zealanders. While total audience numbers for television viewing over the past 12 months reflect an overall decline across the industry, Māori Television experienced a 22 per cent annual increase in unique visits to its website.

Year on year, our website – www.maoritelevision.com – has seen increases in unique users (3.1 million, up 22 per cent), sessions (5.9 million, up 20 per cent) and page views (13.8 million, up eight per cent). Of our online viewers, 57 per cent accessed our content via mobile devices; nearly 20 per cent were living overseas.

Māori Television has also reaffirmed its role as a complementary public service broadcaster, continuing to lead the way as New Zealand’s largest free-to-air provider of local content in prime time for 2015. According to a NZ On Air report, local content made up 82 per cent of Māori Television’s prime time hours compared with 51 per cent for TV One and 50 per cent for TV3. It also showed that

Māori Television was largely responsible for a 2.4 per cent increase – or 298 more hours – of local content across the free-to-air broadcasters researched.

Of the six national channels, Māori Television screened the largest amount – 555 hours – of documentary programming. In addition, the amount of drama and comedy on Māori Television doubled in 2015 and this included first-run programmes such as My Country Song and Find Me a Māori Bride. A large sports provider, Māori Television also screened more than 127 hours of rugby league in 2015 and hosted the free-to-air Vodafone Warriors’ matches for the second year.

We pride ourselves on producing quality shows that tell stories from a uniquely Aotearoa-New Zealand perspective and the look, feel and entertainment factor of our programming remains fundamental to growing the number and regularity of our viewers.

Despite the realities of our operating environment, Māori Television has continued its legacy of fiscal prudence and maintained a strong financial management system. A projected significant deficit for the 2016 financial year was reforecast to a modest surplus. Sales growth has been driven off the back of a new sales team, new content to take to market, more productive relationships with Crown and media agencies and focused efforts on growing our audience to attract new partners.

Content and Brand Strategy In this landscape of traditional and digital viewing usage and preferences, understanding and meeting the needs of the target groups and segments that are important to Māori Television has never been more critical. A major goal has been to use content selection, content creation, marketing and distribution to reach one million viewers per week.

An audience segmentation research project – completed at the end of 2015 – has led to the development of an audience-centric Content Strategy targeting five growth audiences. Rangatahi viewers have been identified as particularly important as half of the Māori population is under the age of 23. The other growth audiences identified are youth potentials, loyals, lapsed and urban professionals.

This foundation research has provided a benchmark for ongoing brand monitoring and understanding our audiences as well as identifying potential opportunities for growth. The audience insights gained will also support development of a refreshed brand strategy and a revitalised consumer-facing presence that closely aligns with our Content Strategy and wider kaupapa.

The research is already making a significant contribution to attracting and growing audiences with cumulative viewing up 13 per cent since the launch of our new season of shows in March 2016. The new schedule brings content together under themed nights – as identified by ratings – including sports, insights, lifestyle, features and movies.

Investing in our Future In a rapidly changing broadcasting and media landscape, and as a niche New Zealand broadcaster, it is critical that Māori Television takes advantage of technological advancements to remain relevant to current and new audiences. We appreciate that our efforts to grow the Māori language were supported


and Hon Bill English, who in representing the Crown provide not only the statutory oversight for our operations but ongoing positive support for our mandate. These have been key factors in the progress achieved during the 2015-2016 year.

I acknowledge the contribution of two Directors who resigned during this period. Dr Cathy Dewes ONZM (Te Arawa, Ngāti Porou) joined the Board in 2007. Cathy’s wealth of knowledge and understanding of Māori language revitalisation, coupled with her experience in governance and leadership roles, has had a significant impact on our direction. Rikirangi Gage (Te Whānau-a-Apanui, Ngāti Porou, Whakatōhea, Ngāti Maniapoto) joined the Board in 2010. Rikirangi’s profound knowledge and understanding of te reo Māori me ngā tikanga Māori, together with an outlook focused on the demands of modern business, have served the Board well.

In their place, we welcomed two new Directors: Whetu Fala (Ngā Rauru, Ngāti Maniapoto, Ngāti Maru ki Taranaki, Samoa, Rotuma) and John Tamihere (Ngāti Porou, Whakatōhea, Tainui). Whetu is an experienced broadcaster and screen industry leader who brings an impressive array of skills including experience in front of and behind the camera, and as a writer. John has extensive experience in broadcasting, governance and executive leadership as well as a lifelong passion for Māori economic and social wellbeing.

With our new Directors, I am pleased to say the Board continues its approach of strong and robust governance together with a single-minded focus on the unique kaupapa which has been entrusted to us. I acknowledge the contribution of all Board members whose dedication to language revitalisation means they always give over and above the call of duty and I thank them for their energy, commitment and support.

On behalf of the Board, I acknowledge our Executive team, headed by Paora Maxwell, and our dedicated and talented staff. Thank you all for the ongoing enthusiasm, energy and commitment that you bring to your work and for the contribution you have given the organisation throughout the past year. Some significant challenges have come our way but you have not let any of these distract you from our primary purpose – to promote and protect te reo Māori me ngā tikanga Māori.

Māori Television’s mandate presents us with a powerful opportunity to share the Māori language and culture with audiences everywhere. Therefore, it is to our audience that our final thanks go for making this past year both challenging and exciting at the same time.

We appreciate that you tune into Māori Television, from wherever you are, to watch our distinctly Māori programming. In doing so, you join us on a unique journey. In a global broadcasting landscape with a multitude of offerings, we truly value and encourage your ongoing support. Tēnei te mihi ki a koutou katoa.

Ka huri.


by the Minister for Māori Development with a much-needed investment of $10.6 million.

Spread over four years, the additional funding for infrastructure and technology ensures that Māori Television’s vision for the revitalisation of te reo Māori me ngā tikanga Māori remains on track. The funding will be used to upgrade the quality of our transmission to High Definition (HD) – providing viewers with clearer and crisper pictures – and will also enable us to increase our investment in multi-platform technology to support the delivery of content to audiences whenever they want it and wherever they live.

The funding boost further supports the Government’s Māori Language Strategy by helping Māori Television to reach, attract and grow viewers, particularly youth. Multi-platform strategies to evolve how our content is delivered will continue to grow in importance for Māori Television. This is especially true if we are to strengthen our connection with Māori youth who are spending less time using traditional television and more time using connected devices than any other age group.

A $4.5 million capital expenditure programme over the next three years has also commenced with a significant portion aimed at the replacement and upgrade of key broadcast and production equipment. Several key projects in the 2015-2016 year have included the digital archiving of programme content, the launch of several multi-platform initiatives including FreeviewPlus and a mobile application, Māori Television Connect, and the redevelopment of the organisation’s intranet.

In October 2015, the Board announced that Māori Television would remain in the greater Auckland region. Since then, a number of potential sites in Tāmaki Makaurau have been under consideration and a final decision is expected to be announced before the end of the 2016 calendar year.

AcknowledgementsIt is with great sadness that we acknowledge the passing of distinguished broadcaster and master communicator Whai Ngata (Ngāti Porou, Te Whānau-a-Apanui) who helped pave the way for the establishment of Māori Television. Whai played a critical role in the development of a strong and unique position for Māori broadcasting in the television industry. He was instrumental in the establishment of Te Karere – subsequently leading TVNZ’s Māori department until he retired in 2008 – and was a mentor to key talent in the Māori broadcasting industry, many of whom have worked or continue to work with our organisation.

I acknowledge and commend the first of our two reporting stakeholders. Te Pūtahi Paoho, representing the Māori Electoral College, will come to the end of its tenure when the newly established Te Mātāwai takes over its role. Te Pūtahi Paoho has set a high bar in its expectations for Māori Television and our role in revitalising te reo Māori me ngā tikanga Māori, and at the same time has provided a steadfast and steady anchor for our efforts. Māori 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.

I thank our shareholding Ministers, Hon Te Ururoa Flavell



Ko te tau pūtea 2015-2016 te tau tuangahuru mā rua o ngā pāhotanga a Whakaata Māori, waihoki, koinei te tau tuawaru o ngā pāhotanga i te hongere a Te Reo, ko ana kaupapa kei roto katoa i te reo Māori; ka mutu ko tēnei te tau tuatoru i te whakaterenga o tā mātou pae tukutuku hou a www.maoritelevision.com.

Kia whai wāhi ahau i konei ki te tuku mihi ki ngā tāngata i hāpai i te reo Māori, i whakapau o rātou kaha i roto i ngā tau ki te hiki ake me te tiaki i te reo Māori. Whiwhi katoa mātou te hunga kei te mahi i te rāngai pāpāho Māori – tae rawa mai ki a mātou i Whakaata Māori – i ngā werawera i heke i ngā rae o rātou te hunga hāpai i te reo.

Ko tētahi tohu whakaatu i te ahurei o Whakaata Māori ko ngā momo kaupapa ka pāhotia e mātou, tāpiri atu ko ngā huinga tāngata nui pērā i Te Rā o Waitangi, Te Rā o Ngā Hōia, ngā whakataetae kapa haka, tangihanga hoki; katoa ēnei kaupapa he āwhina ki te hunga mātakitaki kia uru ai ki te ao o te Māori. I te marama o Poutūterangi i te tau 2016 whai muri i ngā rangahau whānui whāroa, ka whakaterengia e Whakaata Māori āna pāhotanga mō te tau pāho hou.

Ko tētahi mea tino nui ki te hunga rangatahi kei ngā tau 19 ki te 29 te pakeke, ko te noho wātea o a mātou pāhotanga i ngā wāhi, i ngā wā, i ngā ara pāpāho hoki ka pai ki a rātou, waihoki, i whakamātauria e mātou ētahi āhuatanga ka hāngai pū ki te hunga rangatahi e kōrerotia nei. Ko tētahi 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 – hei hāpai hei whakanui i te ao Māori ka piki ka eke ki ngā 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

TE PŪRONGO A TE TĀHUHU RANGAPŪ Chief Executive’s ReportHei 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.

nui tāngata ka tahuri ki a rātou waea ki te nanao ki ngā whakaaturanga.

Kei te marama ki a Whakaata Māori ki te mea ‘kia mana te kōrero’, nā reira, e eke ai mātou ki tētahi wāhi nui i te whakaoranga o te reo Māori he mea nui te whāinga kia ‘Reo Rua’ a Whakaata Māori a te tau 2020. Ki te takoto he rautaki reo Māori mā te hapori mahi o Whakaata Māori – e kapi ai te reo Māori me ōna tikanga, te ao tawhito me te ao tūroa – ka āhei tēnā me tēnā kia whai i tōna ake huarahi ki te mau i te reo Māori.

I nanao a Whakaata Māori ki ngā ratonga matihiko me ngā pūnaha rorohiko hei ara pāho i te taha o ana hongere e rua, me te aha, ka noho a Whakaata Māori ka whakaata i te maha o ngā momo hōtaka mā runga i ana hongere me ngā ara whakaata hou. Ko te whāinga i tēnei rautaki, kia tareka ai ngā kaupapa a Whakaata Māori e te hunga whai pānga nui rawa atu ki a mātou, ara, te hunga mātaki mai – i ngā wā pai ki a rātou, i ngā wāhi katoa kei reira rātou, i runga i ngā ara pāpāho e pai ai ki a rātou.

Ko te mea nui, ka noho te whakatairangatanga me te tiaki i te reo Māori me ngā tikanga Māori ki waenganui pū o a mātou mahi.

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 MaxwellChief Executive


WAWATAVision

Kia kaingākautia, kia kōrerotia, kia tautokona anōte 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.

WHAKATAKANGAMission

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 successthrough the Māori language and Māori culture.

UARAValues

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 MĀORIKia mau kia ū ki te hōhonutanga o ngā tikanga Māori.

Maintain and uphold core Māori values.



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 HighlightsPart 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

TE PŪRONGO A TE TĀHUHU RANGAPŪ Chief Executive’s ReportHei 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.


significance with a regular stream of cooking-related shows from Cam’s Kai to Whānau Bake-off. To capitalize on this rich resource, we have launched New Zealand’s first and only digital kai platform on our website, Te Wharekai – a central hub for all our programming as well as recipes from the shows.

Māori Television has also supported events as a media partner or broadcaster including Auckland’s first ever Tāmaki Herenga Waka Festival as well as the long-running Polyfest and National Māori Sports Awards.

In June 2016, an inaugural Matariki Awards show – organised by Māori Television in partnership with Te Puni Kōkiri – recognised and celebrated Māori excellence and success. The ceremony was live-streamed from the Auckland Museum with three half hour shows televised in the weeks leading up to the event itself. It is intended that the awards will become an annual event to acknowledge and celebrate individuals whose passion, innovation and dedication is making a difference to their communities and to Aotearoa-New Zealand.

Te Reo Māori Quality AssuranceMāori Television continued to work closely with Te Māngai Pāho on the quality assurance of our Māori language broadcasts. A full-time Te Reo Commissioner reviews and monitors the language quality and quantity requirements of our productions and programmes. Every programme funded internally and by Te Māngai Pāho has a rigorous language plan attached to it while every external production is assigned a Māori language consultant who monitors language quality and quantity.

Māori Television’s Te Reo Department contracts an independent language expert to review the language quality of pronunciation, vocabulary, grammar, euphony and the quality of subtitling on the news and current affairs shows. An independent review is conducted every month on a selection of programmes against the quality-indicator framework developed by Te Taura Whiri i te Reo Māori, and an average rating of 4.2 (out of 5) has been achieved.

Digital Multi-Media PlatformThe company-wide multi-platform operating model has supported strong growth in demand for our content online.

With the launch of FreeviewPlus in July 2015, Māori Television’s On Demand library of content is now available

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

alongside television programming of other free-to-air broadcasters as well as online. A new platform for content, FreeviewPlus gives viewers the ability to switch between live television and our back catalogue via their FreeviewPlus-enabled television or set top box. It is available to viewers within the existing Freeview|HD coverage area.

Another initiative was the launch of a bilingual mobile ‘app’, Māori Television Connect, in September 2015 in response to the high demand and growth of smart phone-enabled content users. The app features the latest news from the Māori Television newsroom, On Demand shows and access to channel schedules. It also provides users with the ability to sign in and connect via the ‘Māori Television Share Your News’ function and to submit videos, photos or text directly to the organisation.

Māori Television is committed to the protection of programme content created with funding from the Crown and – as part of a major capital expenditure programme – began to digitally archive this content during the 2015-2016 year. The organisation also redeveloped its intranet with the aim of improving communication outcomes, driving collaboration and encouraging co-operation. The new-look Te Aka Kūmara provides a platform for our staff to better share ideas, information and resources.

Māori Television now has a full complement of Executive leaders, Te Kāhui Rangatira, in place to continue implementation of its strategy. Promotion and protection of te reo Māori me ngā tikanga Māori are at the apex of the model alongside the need to grow our audience share and broadcast engaging and entertaining content.

Dual Language OrganisationMāori 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. As well as our role as a public broadcaster, Māori Television employs some 120 staff with low levels of Māori language proficiency and approximately 55 speakers of te reo Māori with varying levels of ability and understanding.

An internal Māori language strategy – encompassing te reo Māori me nga tikanga Māori (language and culture), te ao tawhito (ancient knowledge) and te ao tūroa (the future) – will enable all staff to join and progress their own Māori language journey. The strategy will focus on training


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 TāngataI 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 MaxwellChief Executive



PICS TBC

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

NGĀ TOHU O MATARIKI 2016Matariki Awards 2016


NGĀ PUTANGA MATUA 2015-2016Key Outputs 2015-2016TE REO Language• Māori language in prime-time:

Māori Television 54 Per cent Target: 51 per cent

• Māori language across all hours: Māori Television

60 Per cent Target: 51 per cent

• Māori language across all hours: Te Reo 99 Per cent Target: 95 per cent

• Māori language in prime-time: Māori Television and Te Reo

75 Per cent Target: 70 per cent

NGĀ HAORA KI POUAKA WHAKAATA Television hours• Māori Television 6,091 Hours of broadcast Target: 6,026 hours

• Te Reo 3,001 Hours of broadcast Target: 2,469 hours

• Māori Television and Te Reo 9,092 Hours of broadcast Target: 8,495 hours

NGĀ HAORA IPURANGI Online hours• Online at 30 June 2016 2,218 Hours of programming Target: 1,250 hours

• Online at 30 June 2016 431 Hours of language

learning content Target: 250 hours

• Online at 30 June 2016 350 Hours of programming

for young people Target: 200 hours

NGĀ HAORA KI TE AKO REO Language learning hours• Māori Television and Te Reo 2,239 Hours of language

learning content Target: 1,850 hours

• Māori Television, Te Reo and Online

2,670 Hours of language learning content

Target: 2,100 hours

TE KOUNGA O TE REO Language quality• Average rating 4.2 Out of 5 Target: 4.0

NGĀ WHAKAATURANGA RANGATAHI Programmes for youth• Māori Television and Te Reo 1,545 Hours of programming

for young people Target: 1,200 hours

• Māori Television, Te Reo and Online

1,895 Hours of programming for young people

Target: 1,400 hours

NGĀ PUNAHA PĀPĀHO Transmission platforms• Māori Television and Te Reo - Digital satellite

- Digital terrestrial

- Sky

• Online - Via online and broadband services

- By connected mobile devices

- Freeviewplus hbbtv (new)


Hon Georgina te Heuheu QSONgāti 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 WalkerNgāti 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.

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.

TE MANA ARATAKI ME NGĀ WHAKAEANGA Governance and Accountability


Rhonda KiteTe Aupōuri, Ngāi Takoto (Crown appointment)

KIWA founder Rhonda Kite is now based in Abu Dhabi in the United Arab Emirates where she is developing new business in the Middle East as Chief Executive and Director of KIWA FZ-LLC. An award-winning producer with more than 20 years’ experience in the production industry, Rhonda established KIWA in 2003 as a screen production company, pioneering and advancing technology for foreign-language dubbing solutions in the screen industry. She then built KIWA into a leading production house for experiential education digital books. Rhonda has served on the boards of Ngā Aho Whakaari, Aotearoa Film and Television Awards, Ministry of Business Innovation and Employment’s Small Business Development Group and NZ On Air.

Waihoroi ShortlandNgāti Hine, Te Aupōuri (Te Pūtahi Paoho appointment)

Waihoroi Shortland is a writer, director, producer and actor who has more than 30 years’ experience working in te reo Māori-related media. Early in his working life, Waihoroi was a clerk and interpreter for the Māori Land Court in Te Taitokerau and a Māori Community Officer in Auckland, Pukekohe and Kaitaia. From there, he worked as a senior journalist on the TVNZ Māori language news programme Te Kārere and for Mana Māori Media. His film credits include the lead in Tangata Whai Rawa o Wēneti – The Māori Merchant of Venice, a role for which he was awarded Best Actor at the New Zealand Film Awards. He was also part of the cast of a te reo Māori adaptation of Shakespeare’s Troilus and Cressida at the Globe Theatre in London. Waihoroi has been a Commissioner for Te Taura Whiri i te Reo Māori and was recently appointed to the new Māori language entity, Te Mātāwai.

John TamihereNgāti Porou, Whakatōhea, Tainui (Te Pūtahi Paoho appointment)

John Tamihere has experience in broadcasting, governance and executive leadership. John is a former Member of Parliament (1999-2005) and served as a cabinet minister in the Labour Government from August 2002 until November 2004. Born, raised and educated in Auckland, he has arts and law degrees from the University of Auckland and has worked as a lawyer for the Māori Land Court and the Department of Māori Affairs. John is the Chief Executive of the Waipareira Trust in west Auckland which provides health and education services to Māori. He has been a high profile campaigner on behalf of urban Māori and is a Mataawaka member of the Independent Māori Statutory Board. John has been the Chairman of the New Zealand Māori Rugby League Board and has also hosted radio and television shows.

Role of the BoardThe Board’s governance responsibilities, which are defined in the Māori Television Service (Te Aratuku Whakaata Irirangi Māori) Act 2003, include:

• the annual completion of a Statement of Intent which is to be agreed upon with the Minister for Māori Development and the Minister of Finance (the ‘responsible Ministers’) and Te Pūtahi Paoho;

• the annual completion of an Output Agreement which is to be agreed upon with the responsible Ministers;

• the provision of quarterly reports against the Output Agreement to the Chairperson of Te Pūtahi Paoho and the responsible Ministers;

• the provision of an Annual Report to the Chairperson of Te Pūtahi Paoho and the responsible Ministers;

• the delegation to the Chief Executive of responsibility for the efficient and effective administration of the day-to-day operations of Māori Television.

The Board concentrates on setting policy and strategy and holds regular meetings to monitor progress towards the achievement of those strategic objectives and to ensure that the affairs of Māori Television are being conducted in accordance with the Board’s policies.

The Board has two standing committees:

• Audit Committee During the year, members of the Audit Committee were

Cathy Dewes, Rhonda Kite and Piripi Walker. Tiwana Tibble was appointed to the Audit Committee as the Audit Committee Chair on 17 October 2014 as an independent, external member. His remuneration for the year ended 30 June 2016 was $8,400.

• Remuneration Committee During the year, members of the Remuneration

Committee were Georgina te Heuheu, Donna Gardiner and Rikirangi Gage. Susan Huria was appointed to the Remuneration Committee as the Remuneration Committee Chair on 17 July 2015 as an independent, external member. Her remuneration for the year ended 30 June 2016 was $4,429.

Conflicts of InterestA Director who is interested in a transaction, or proposed transaction of, or other matters relating to Māori Television, must disclose the nature of the interest to the Chair of the Board. If the Director is the Chair, disclosure must be made to the Chairperson of Te Pūtahi Paoho and the responsible Ministers.

Risk ManagementThe Board acknowledges that it is ultimately responsible for the management of risks to Māori Television. The Board has charged the Chief Executive with establishing and operating a prudent risk management programme.


Programme StandardsThe 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 SafetyMāori 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 PolicyMāori 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


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 MaxwellChairperson Chief ExecutiveDate: 14 October 2016 Date: 14 October 2016


TE PŪRONGO A TE KAITĀTARI KAUTE MOTUHAKEIndependent Auditor's ReportTo 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 informationWe have audited:

• the 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

- comply 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:

• its standards of performance achieved as compared with forecasts included in the statement of intent for the financial year;

• its 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 opinionWe 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


our audit. Our responsibility arises from the Public Audit Act 2001.

IndependenceWhen carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board.

Other than the audit, we have no relationship with or interests in the Service.

Karen MacKenzieAudit New ZealandOn behalf of the Auditor-GeneralAuckland, New Zealand

of the financial statements and the performance information, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the preparation of the Service’s financial statements and performance information in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Service’s internal control.

An audit also involves evaluating:

• the appropriateness of accounting policies used and whether they have been consistently applied;

• the reasonableness of the significant accounting estimates and judgements made by the Board;

• the appropriateness of the reported performance information within the Service’s framework for reporting performance;

• 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 BoardThe 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 AuditorWe are responsible for expressing an independent opinion on the financial statements and the performance information and reporting that opinion to you based on


Non-Departmental Output ClassMāori 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:

• enable 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:

• Māori 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):

TE TAUĀKĪ MAHIStatement of Service Performance


OUTPUT 1 - TELEVISION SERVICE OPERATIONSDescription Performance Measures

To support the operational costs of Māori Television so that it can meet its statutory functions.

QuantityBroadcast a minimum of 7,700 hours of programming for the year.

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 million2015 Actual: $14.289 million

OUTPUT 2 - TRANSMISSION COVERAGEDescription Performance Measures

Provide broadcast services that are technically available throughout New Zealand and are accessible to as many people as is reasonably and economically possible.

QuantityProvide free-to-air transmission to at least 87 per cent of New Zealand’s population via free-to-air digital terrestrial and to 100 per cent of New Zealand via free-to-air digital satellite.

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 million2016 Budget: $2.300 million2015 Actual: $2.322 million

Total Output Costs equals Total Revenue from the Crown per Statement of Comprehensive Revenue and Expenses

2016 Actual: $16.611 million2016 Budget: $16.611 million2015 Actual: $16.611 million


TE TAUĀKĪ O NGĀ WHIWHINGA MONI WHĀNUI Statement of Comprehensive Revenue and ExpenseFor the year ended 30 June 2016

Note Actual2016 $000s

Budget2016 $000s

Actual2015 $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


Budget2016 $000s

Actual2015 $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.


TE TAUĀKĪ TŪNGA PŪTEA Statement of Financial PositionAs at 30 June 2016


Budget2016 $000s

Actual2015 $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



TE TAUĀKĪ KAPEWHITIStatement of Cash FlowsFor the year ended 30 June 2016


Budget2016 $000s

Actual2015 $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.



NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEANotes to the Financial StatementsFor the year ended 30 June 2016

1. Statement of Accounting PoliciesThe financial statements of Māori Television are for the year ended 30 June 2016. The financial statements were authorised by the Board of Directors on 14 October 2016. The following accounting policies that materially affect the measurement of financial performance, financial position and cash flows have been applied:

(a) Reporting Entity The Māori Television Service is a statutory corporation

incorporated in New Zealand under the Māori Television Service Act 2003 and is domiciled in New Zealand.

The purpose of Māori Television is to contribute to the protection and to promote te reo Māori and as such the objective is to provide a service to the public of New Zealand as opposed to that of making a financial return. Accordingly, Māori Television has designated itself as a Tier 1 public benefit entity (PBE) for financial reporting purposes.

(b) Statement of Compliance These financial statements have been prepared in

accordance with section 41 of the Māori Television Act 2003 which includes the requirement to comply with New Zealand generally accepted accounting practice (“NZ GAAP”).

The financial statements have been prepared in accordance with and comply with Tier 1 PBE accounting standards. The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently throughout the period.

(c) Measurement Base The financial statements have been prepared on an

historical cost basis.

(d) Standards issued and not yet effective and not early adopted

In 2015, the External Reporting Board issued Disclosure Initiative (Amendments to PBE IPSAS 1), 2015 Omnibus Amendments to PBE Standards, and Amendments to PBE Standards and Authoritative Notice as a Consequence of XRB A1 and Other Amendments. These amendments apply to PBEs with reporting periods beginning on or after 1 January 2016. The Māori Television Service will apply these amendments in preparing its 30 June 2017 financial statements. The Māori Television Service expects there will be no effect in applying these amendments.

(e) Changes in Accounting Policy There have been no changes in accounting policies

during the financial year.

(f) Functional and Presentation Currency The financial statements are presented in New Zealand

dollars and all values are rounded to the nearest thousand dollars ($’000). The functional currency of

Māori Television is New Zealand dollars.

(g) Forecast Financial Statements Budget Figures The budget figures are derived from the Statement of

Intent as approved by the Board at the beginning of the financial year. The budget figures have been prepared in accordance with PBE accounting standards, using accounting policies that are consistent with those adopted by Māori Television for the preparation of the financial statements.

(h) Foreign Currencies Transactions denominated in a foreign currency are

converted at the exchange rate ruling at the date of the transaction.

At balance date, foreign currency monetary assets and liabilities are converted at closing exchange rates and exchange variations arising from these transaction items are included in the surplus or deficit.

(i) Revenue Revenue from the Crown Māori Television is primarily funded through revenue

received from the Crown which is restricted in its use for the purpose of Māori Television meeting its objectives as specified in the Statement of Intent and Output Plan. Māori Television considers there are no conditions attached to the funding and it is recognised as revenue at the point of entitlement. This is considered to be the start of the appropriation period to which the funding relates.

Te Māngai Pāho Production Funding Māori Television receives funding from Te Māngai Pāho

which is restricted in its use for the purpose of Māori Television meeting its objectives as specified in the Agreement for Television Production Funding. Māori Television considers there are conditions attached to the funding and this funding is recognised as revenue when the conditions are satisfied.

Other Production Funding Production funding from Te Māngai Pāho and others

(e.g. NZ On Air) is recognised when earned.

Advertising Revenue The sale of advertising spots provided to third parties

on commercial terms are exchange transactions. Advertising revenue is recognised when advertising spots have gone to air.

Interest revenue Interest revenue is recognised when earned. Revenue is

measured at the fair value of consideration received or receivable to air.

(j) Leases Operating Leases Leases that do not transfer substantially all the risks


and rewards incidental to ownership of an asset to Māori Television are classified as operating leases. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the term of the lease in the surplus or deficit.

(k) Cash and Cash Equivalents Cash and cash equivalents include cash on hand,

deposits held at call with banks, and other short-term, highly liquid investments, with original maturities of three months or less.

(l) Bank deposits Investments in bank deposits are initially measured

at the amount invested. After initial recognition, investments in bank deposits are measured at amortised cost using the effective interest method. At balance date, Māori Television assesses whether there is any objective evidence that an investment is impaired.

For bank deposits, impairment is established when there is objective evidence that Māori Television will not be able to collect amounts due according to the original terms of the deposit. Significant financial difficulties of the bank, probability that the bank will enter into bankruptcy and default in payments are considered indicators that the deposit is impaired.

(m) Trade and Other Receivables Trade and other receivables are measured at amount

due, less any provision for impairment. Impairment of a receivable is established when there is an objective evidence that Māori Television will not be able to collect amounts due according to the original terms of the receivable.

The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the surplus or deficit. When the receivable is uncollectible, it is written off against the allowance account for receivables. Overdue receivables that have been renegotiated are reclassified as current (i.e. not past due).

(n) Provisions A provision is recognised for future expenditure of

uncertain amount or timing when:

• there is a present obligation (either legal or constructive) as a result of a past event;

• it is probable that an outflow of future economic benefits or service potential will be required to settle the obligation; and

• a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”.

(o) Financial Instruments Māori Television is party to financial instrument

arrangements including cash and bank, term deposits and accounts receivable as part of its every day operations, which are recognised in the Statement of Financial Position. Revenue and expenditure in relation to all financial instruments are recognised in the surplus or deficit. Except for those items covered by a separate accounting policy, all financial instruments are shown at their estimated fair value.

(p) Intangibles Software: Acquired computer software licenses are capitalised

on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with the development of the Māori Television website are capitalised. Costs associated with the maintenance of the Māori Television website are recognised as an expense when incurred.

Programme Rights: All programmes are valued at their cost to Māori

Television. Cost being defined as total cost paid by Māori Television not including any Māori Television overheads. Third party contributions for individual programmes are recorded in the Statement of Comprehensive Income as revenue.

Under PBE IPSAS 31, Māori Television recognises the following types of programmes at cost and amortises each programme over its economic useful life:

• Internally produced programmes (Note 9a Programme Rights – Internal).

• Commissioned programmes (Note 9a Programme Rights – External).

• Acquired programmes produced by third party producers (Note 9a Programme Rights – External).

An annual impairment assessment is carried out on all intangibles recognised by Māori Television.

(q) Amortisation The carrying value of an intangible with a finite life is

amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit.

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Website 2 years

Acquired computer software 3 years

Programme Rights Programmes which primarily deal with current events,

and/or transmitted within a very short-time of their production, and/or are unlikely to be replayed at any future time (e.g. genres such as current affairs, sport,


live events) are fully amortised at the time of their first transmission.

Programmes with longer shelf lives, that are intended to be transmitted several times over a number of months or years, are amortised as they are broadcast. The amortisation formula may be varied depending on the specifics of the programme but the default amortisation policy is based on 60% first play, 20% second play and 20% third play.

(r) Property, Plant and Equipment and Depreciation Property, plant and equipment is stated at historical cost

less accumulated depreciation and impairment losses. Depreciation is calculated on a straight line basis to allocate the cost of the assets by equal instalments to an estimated residual value at the end of the economic life of the asset. Important depreciation periods are:

Computer Equipment 3 years

Office Equipment 3-10 years

Studio Equipment 5 years

Studio Fitout 10 - 20 years

Building Soft Fitout & Office Equipment 5 -12 years

Artworks 9 years

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

(s) Impairment of non-financial assets Property, plant and equipment and intangibles that

have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where Māori Television would, if deprived of the asset, replace its remaining future economic benefits or service potential.

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit.

(t) Trade and Other Payables Trade and other payables are measured at fair value.

(u) Employee Entitlements Employee entitlements that Māori Television expects

to be settled within 12 months of balance date are measured at undiscounted nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date

and annual leave earned but not yet taken at balance date.

Currently there is no provision in employment contracts for long service leave or retirement leave.

(v) Goods and Services Tax (GST) All items in the financial statements are presented

exclusive of GST, except for receivables and payables which are presented on a GST inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to the Inland Revenue Department (IRD), is included as part of receivables or payables in the Statement of Financial Position.

The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

(w) Statement of Cash Flows Cash and cash equivalents means cash balances on

hand, held in bank accounts, on-demand deposits and term deposits with original maturities of less than three months.

Operating activities include cash received from all income sources of Māori Television and records the cash payments made for the supply of goods and services.

Investing activities are those activities relating to the acquisition and disposal of property plant and equipment, intangibles and bank deposits greater than three months.

Financing activities are those activities relating to changes in debt or capital structure.

(x) Liquidity Risk - Management of Liquidity Risk Liquidity risk is the risk that Māori Television will

encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through and an adequate amount of committed credit facilities. Māori Television aims to maintain flexibility in funding by keeping committed credit lines available.

(y) Capital Management Māori Television’s capital is its equity, which comprise

retained earnings and is represented by net assets.

(z) Interest in Jointly Controlled Entity The interest in a joint venture entity is accounted for

in the financial statements using the equity method of accounting. Under the equity method, Māori Television’s share of the results of the joint venture are recognised in the Statement of Comprehensive Revenue and Expense and the share of movements in reserves is recognised in the Statement of Financial Position.

(aa)Critical accounting estimates and assumptions


In preparing these financial statements Māori Television has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Property, Plant and Equipment Useful Lives and Residual Value

At each balance date, Māori Television reviews the useful lives and residual values of its property, plant and equipment. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires Māori Television to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by Māori Television and expected disposal proceeds from the future sale of the asset.

An incorrect estimate of the useful life or residual value will impact the depreciation expense recognised in the surplus or deficit, and carrying amount of the asset in the Statement of Financial Position. Māori Television minimises the risk of this estimation uncertainty by:

• physical inspection of assets;

• asset replacement programmes;

• review of second hand market prices for similar assets; and

• analysis of prior asset sales.

Estimates in respect of certain items of studio fit-out were revised in 2015. The useful lives for these assets were decreased to 10 – 20 years (see note 8).

Programme Rights Useful Lives and Residual Value At each balance date Māori Television reviews

the values of its programme rights. Assessing the appropriateness of the useful life and residual value 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 Māori 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.

• Māori Television has no rights to any future exploitation of the programme for non-broadcast uses.

• Māori Television does not have the right to add the programme to its archive.

• Māori Television had no role in its conception or production, and therefore no intellectual property rights.

• The programme has no future usage in regard to the promotion of te reo Māori (Māori language) me ngā tikanga Māori (Māori culture).

When these criteria are satisfied, Māori Television adjusts the cost and accumulated amortisation of the programmes. In these instances, there is no impact on the surplus or deficit or net book value of intangible assets.

(bb) Critical judgements in applying Māori Television’s accounting policies Management has exercised the following critical

judgments in applying Māori Television’s accounting policies for the year ended 30 June 2016:

Leases Classification Determining whether a lease agreement is a finance or

an operating lease requires judgement as to whether the agreement transfers substantially all the risks and rewards of ownership to Māori Television.

Judgement is required on various aspects that include, but are not limited to, the fair value of the leased asset, the economic life of the leased asset, whether or not to include renewal options in the lease term and determining an appropriate discount rate to calculate the present value of the minimum lease payments.

Classification as a finance lease means the asset is recognised in the Statement of Financial Position as property, plant and equipment, whereas for an operating lease no such asset is recognised.

Māori Television has exercised its judgment on the appropriate classification of property and equipment leases and has determined all of their lease arrangements are operating leases.


2. TaxationMāori Television is exempt from Income Tax by virtue of being registered as a charitable entity under the Charities Act 2005 and therefore no provision has been made in the financial statements.

3. Personnel Costs

2016 $000s

2015 $000s

Salaries and Wages 13,482 14,135

Board Members’ fees 145 139

Employer Contributions to Defined Contribution Plans 316 318

TOTAL 13,943 14,592

4. Expenditure

2016 $000s

2015 $000s

The net surplus is after charging for:

Fees paid to Auditors

Attest Audit Fees 81 79

Other Operating Costs include:

Bad and Doubtful Debts 11 11

Loss on Disposal - -

Rental Expense on Operating Leases 1,116 1,122

Depreciation & Non-Programme Amortisation:

Property, Plant & Equipment (Note 8) 2,004 1,417

Impairment of Property, Plant & Equipment (Note 8)

- -

Computer Software (Note 9b) 338 323

TOTAL DEPRECIATION & NON-PROGRAMME AMORTISATION

2,342 1,740

Programme Costs incl. Amortisation

Programme Amortisation (Note 9a) 8,112 9,347

Provision for Write Off (Note 9a) 99 165

Programme Overhead Costs 2,273 1,931

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

5. Cash and Cash Equivalents

2016 $000s

2015 $000s

Cash at Bank and On Hand 3,392 4,653

Short-term Deposits Maturing 3 Months or Less from Date of Acquisition

- -

NET CASH AND CASH EQUIVALENTS FOR THE PURPOSES OF THE STATEMENT OF CASH FLOWS

3,392 4,653

The carrying value of cash at bank and short-term deposits with maturity dates of three months or less approximates their fair value.

6. Bank Deposits

Investments are represented by bank deposits which have maturities greater than three months from the date of acquisition.

ImpairmentThere are no impairment provisions for bank deposits. No bank deposits are either past due or impaired (2015: nil).

Fair ValueThe carrying amounts of investments approximate their fair value.

Maturity Analysis and Effective Interest Rates of InvestmentsThe maturity dates and weighted average effective interest rates for bank deposits are as follows:

2016 $000s

2015 $000s

Bank Deposits with Maturities greater than 3 months and less than 12 months

9,200 8,200

TOTAL BANK DEPOSITS 9,200 8,200

Weighted Average Effective Interest Rate 3.48% 4.50%


7. Trade and Other Receivables

2016 $000s

2015 $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 $000s

2015 $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 $000s

2015 $000s

Balance at 1 July (11) -

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

Receivables written off during the period 11 -

TOTAL (11) (11)


8. Property, Plant and EquipmentMovements for each class of property, plant and equipment are as follows:

Office Equipment

ComputerEquipment

StudioEquipment

StudioFitout

Building Soft Fitout

Artwork Total

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).


9a. Intangibles - Programme Rights

Programme Rights - Internal

Programme Rights - External

Total

$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)


TOTAL 1,224 1,587 2,811

Programme Rights - Internal

Programme Rights - External

Total

$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


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)


TOTAL 686 1,294 1,980

The balances for individual programme rights are the net sum of accumulated costs to date less the amounts charged for amortisation as those programmes are broadcast. The amounts charged for amortisation are based on an average expected cost over all the episodes in a series, whereas the costs of producing each individual episode in that series can vary considerably. It is expected that at the end of the useful life of the programme that the amortisation charge will fairly reflect the final cost of the programme but this can give rise to credit balances for programme rights at any moment in time, including balance date. This is most common with internally produced programme series which are still only part way through production at balance date.

There are no restrictions over the title of intangible assets.

No intangible assets are pledged as security for liabilities. Externally acquired programme rights are subject to the copyright restrictions of the distributing/production entity.

Heritage AssetsMāori Television Service considers its fully amortised Māori programming as a heritage asset because of the historical and cultural qualities held within that programming that contributes to the knowledge and culture of Te Reo Māori. The intrinsic cultural value of these assets is invaluable and there is insufficient information to assist in valuing these assets therefore the carrying value of these assets is nil. The gross costs and gross amortisation are not written off and are maintained to recognise the investment made in this programming.


9b. Intangibles - Computer Software

2016 $000s

2015 $000s

At 1 July net of accumulated amortisation 385 442

Additions 210 266

Disposals - -

Amortisation charge (338) (323)

Amortisation on disposals - -

CLOSING NET BOOK VALUE 257 385

At 30 June

Cost 2,682 2,472

Accumulated Depreciation (2,425) (2,087)

TOTAL 257 385

10. Trade and Other PayablesTrade and other payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value approximates their fair value.

2016 $000s

2015 $000s

Trade Creditors 1,565 1,082 Accrued Expenses 1,205 1,176 TOTAL 2,770 2,258

11. Employee Entitlements

2016 $000s

2015 $000s

Annual Leave 704 805

Accrued Wages 396 574

ACC Levies 16 36

TOTAL 1,116 1,415

12. Unearned Revenue

2016 $000s

2015 $000s

Advertising Sales 58 4

TOTAL 58 4

All unearned revenue has arisen from exchange transactions.

13. Provisions - Lease Make Good

2016 $000s

2015 $000s

Opening Balance 431 414

Additional Provisions Made 708 -

Discount Unwind on Provision (29) 17

TOTAL 1,110 431

In respect of the Newmarket leased premises, Māori Television is required at the expiry of the lease term to make good the property in accordance with the terms of the lease. The cash flows associated with the non-current portion of the lease make-good provision are expected to occur in June 2022.

Discounting has been used to measure the value of this provision. The carrying amount of the provision has increased this year to reflect the passage of time and the additional provision made recognises this increase as an interest expense.

14. Reconciliation of the Net Surplus from Operations with the Net Cash Flows from Operating Activities

2016 $000s

2015 $000s

Net Surplus / (Deficit) for the Year 40 (103)

Add/(Less) Non Cash Movements

Depreciation - Property, Plant & Equipment 2,004 1,417

Impairment of Property, Plant & Equipment - -

Amortisation - Programme Rights 8,114 9,347

Provision for Write Off - Programme Rights 99 165

Amortisation - Computer Software 337 323

Provision for Doubtful Debts / Bad Debts Written Off 11 11

Make good provision interest adjustment (29) 17

10,576 11,177

Add/(Less) Movements in Working Capital

Less (Increase)/Add Decrease in Prepayments & Other Receivables

(103) (171)

Less (Decrease)/Add Increase in Payables & E’ee Entitlements

212 71

Less (Increase)/Add Decrease in Receivables (560) (31)

Less (Increase)/Add Decrease in GST Receivable (83) 11

Less (Decrease)/ Add Increase in Unearned Income 54 (108)

NET CASH FLOWS FROM OPERATING ACTIVITIES 10,096 10,949


15. Related Party Transactions and Key Management PersonnelMāori 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 $000s

2016 FTE

2015 $000s

2015 FTE

Board Members

Renumeration 145 139

Full-time equivalent members 1.62 1.85

Executive Group

Renumeration 1,374 1,574


Senior Management

Renumeration 1,496 1,513


TOTAL KEY MANAGEMENT PERSONNEL REMUNERATION 3,015 3,226

TOTAL FULL TIME EQUIVALENT PERSONNEL 23.62 26.85

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 InsuranceThe 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.


16. Employees’ RemunerationThe 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.

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

2016No.

2015 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

2016 $000s

2015 $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


18. Loan FacilitiesMāori Television has a letter of credit facility with the bank for $200,000. At balance date this facility was un-utilised.

19. Employment MattersDuring the year, Māori Television made 5 (2015: 4) severance payments to employees totalling $86,557 (2015: $138,300).

20. Post Balance Date Events After balance date, the Māori Television Service entered into a non-cancellable contract to lease premises for a period of 15 years with the option to renew the lease for a further 6 years. The annual rental under the lease will be reviewed every 2 years. The agreement is not included in the statement of commitments because it was entered into after balance date.

There have been no other significant events after balance date.

21. Commitments and Operating Leases

2016 $000s

2015 $000s

Transmission and Satellite Linking 2,093 5,970

Programme - Internal 3,425 3,773

Programme - External 417 726

TOTAL 5,935 10,469

Transmission and Satellite LinkingMāori Television has entered into long-term agreements with Television New Zealand, Kordia and JDA for the transmission of its programmes on the digital satellite and digital terrestrial platforms.

2016 $000s

2015 $000s

Not later than one year 1,181 1,647

Later than one not later than 2 716 1,573

Later than 2 but not later than 5 196 2,080

Later than 5 years - 670

TOTAL 2,093 5,970

Programme ProductionProduction of a number of programmes had commenced but were not completed at year end. Expenditure required to complete production is recorded as a commitment.

Programme AcquisitionsContracts 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.

Non-Cancellable Operating Lease Commitments

2016 $000s

2015 $000s

Not later than one year 1,108 975

Later than one not later than 2 102 877

Later than 2 but not later than 5 66 24

Later than 5 years - -

TOTAL 1,276 1,876

22. ContingenciesContingent AssetsThere are no contingent assets at year end 30 June 2016 (2015: nil).

Contingent LiabilitiesThere is one legal proceeding against Māori Television Service in relation to a defamation claim. As at year-end the potential liability to Māori Television Service is unknown (2015: nil).

23. Interest in Joint VentureMāori Television has a 17.7 per cent interest in FreeView Limited, an incorporated joint venture with Television New Zealand, TVWorks Limited, Māori Television Service and Radio New Zealand Limited. FreeView Limited is audited by Ernst Young and has a balance date of 30 June.

Māori Television Service holds 177 shares in Freeview Limited for which the share capital is uncalled and unpaid. The carrying amount of the company’s investment in FreeView Limited is $nil ($2015: nil).

The following table provides summarised financial information relating to the FreeView Limited joint venture:

Extract from the joint venture Statement of Financial Position

2016 $000s

2015 $000s

Current Assets 745 904

Non-Current Assets 637 622

TOTAL ASSETS 1,382 1,526

Current Liabilities 1,382 1,526

Non-Current Liabilities - -

TOTAL LIABILITIES 1,382 1,526

NET ASSETS - -

Māori Television’s share of joint venture’s net assets -

-


Extract from the joint venture Statement of Comprehensive Income

2016 $000s

2015 $000s

Income 2,422 4,204

Expenses 2,422 4,204

NET SURPLUS - -

Māori Television’s share of joint venture’s net surplus - -

There are no contingent liabilities relating to Māori Television’s interest in the joint venture other than as disclosed and no contingent liabilities or capital commitments of FreeView Limited itself.

24. Significant Budget Variancesa) Other Production Funding Income. This type of income

is unpredictable in nature and is difficult to budget for because of the uncertainty involved in determining what will be received in any given financial year. However, the extra production income received is matched by a corresponding increase in the cost of programme production.

(b) Advertising income this year was lower than budget and last year with lower ratings being the main factor for the decrease in income. New Zealand’s television broadcasting industry has experienced a decrease in the number of people watching television. The viewing audiences are becoming fragmented with the number of platforms available to watch content becoming more varied.

(c) The favourable variance in Personnel Costs compared to the current year budget and last year actual is as a result of actively managing our staff count.

(d) An unfavourable variance in Depreciation and Amort compared to current year budget and last year actual is as a result of increase in make good provision for premises.

(e) The favourable variance in Programme Management Costs compared to last year actual is a result of a decrease in amortisation due to wash up of net favourable variances in direct production costs for in-house programmes.

(f) The Cash and Cash Equivalents budget include Term Deposits of $8,2m.

(g) Addition in Property, Plant and Equipment was lower than budgeted.

(h) No provision was made for make good provision in the budget.

25. Financial InstrumentsMāori Television is risk averse and seeks to minimise its exposure from its treasury activities. Its policies do not allow any transactions which are speculative in nature to be entered into.

Credit RiskCredit risk is the risk that a third party will default on its obligation to Māori Television, causing Māori Television to incur a loss. Financial instruments which potentially subject the company to risk consist principally of cash, short term investments and trade receivables.

Māori Television has a minimal credit risk in its holdings of various financial instruments. These instruments include cash, bank deposits and accounts receivable.

Māori Television believes that these policies reduce the risk of any loss which could arise from its investment activities. Māori Television does not require any collateral or security to support financial instruments.

There is no significant concentration of credit risk.

The maximum amount of credit risk for each class is the carrying amount in the Statement of Financial Position.

Liquidity RiskLiquidity risk is the risk that Māori Television will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Māori Television aims to maintain flexibility in funding by keeping committed credit lines available.

Currency RiskCurrency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.

At balance date, Māori Television had exposure to currency risk in regard to the purchase of television programmes from overseas which are primarily denominated in US dollars (see the Commitments Note). Māori Television does not enter into forward exchange contracts to hedge any exposure.

Interest Rate RiskInterest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. There are no interest rate options or interest rate swap options in place as at 30 June 2016.

The Board does not consider that there is any significant interest exposure on Māori Television’s investments.


25a. Financial Instrument CategoriesThe accounting policies for financial instruments have been applied to the line items below:

2016 $000s

2015 $000s

FINANCIAL ASSETS

Loans & Receivables

Cash & Cash Equivalents 3,392 4,653

Bank Deposits 9,200 8,200

Trade and Other Receivables 3,198 2,770

TOTAL LOANS & RECEIVABLES 15,790 15,623

2016 $000s

2015 $000s

FINANCIAL LIABILITIES

Financial Liabilities at Amortised Cost

Trade and Other Payables 2,770 2,258

TOTAL FINANCIAL LIABILITIES AT AMORTISED COST

2,770 2,258

25b. Financial Instrument RisksMaximum exposure to credit riskThe maximum exposure for each class of financial instrument is as follows:

2016 $000s

2015 $000s

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

Debtors and Other Receivables 3,198 2,770

TOTAL CREDIT RISK 15,790 15,623

Credit quality of financial assetsThe credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor’s credit ratings (if available) or to historical information about counterparty default rates:

2016 $000s

2015 $000s

Counterparties with credit ratings:

Cash at Bank and Bank Deposits

AA- 12,592 12,853

TOTAL CASH AT BANK AND BANK DEPOSITS 12,592 12,853

Counterparties without credit ratings:

Debtors and Other Receivables

Existing counterparty with no defaults in the past 3,198 2,770

TOTAL DEBTORS AND OTHER RECEIVABLES 3,198 2,770

Māori Television 9-15 Te Ara o Davis | 9-15 Davis CrescentPouaka Poutāpeta 113017 | PO Box 113017NewmarketTāmaki Makaurau | Auckland 1149Aotearoa | New ZealandWaea | Tel: +64 9 539 7000Waea Whakaahua | Fax: +64 9 539 7199www.maoritelevision.com

Documents

MŌ TE TAU I EKE I TE 30 O PIPIRI 2016 Annual Report · 2017. 7. 25. · o Paengawhāwhā i te tau 2016. Ka whakatakoto i te Ture hou he huarahi hei whai tahi mā te Karauna me ngā