NGATI RONGOMAI IWI TRUST

ANNUAL REPORT

2016

“Ngā rape puataatau a Rakeiao”

To rejuvenate, reunite, and innovate Ngãti Rongomai

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DIRECTORY

TRUSTEES Howard Morrison (Chairman)

George Epapara

William Emery

Frances Teinakore-Curtis

Merehira Savage

SECRETARY/ACCOUNTANT Murray Patchell

Owen Mitai-Wells

BANKERS Bank of New Zealand

REGISTERED OFFICE Deloitte

Chartered Accountants

Pukeroa Oruawhata House

2/1176 Amohau Street

P. O. Box 12003

ROTORUA

Phone: (07) 343 1050

Fax: (07) 343 1051

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TABLE OF CONTENTS

DIRECTORY .............................................................................................................................................................................................2

TABLE OF CONTENTS .............................................................................................................................................................................3

AGENDA .................................................................................................................................................................................................4

MINUTES OF ANNUAL GENERAL MEETING ............................................................................................................................................5

CHAIRMAN REPORT ..............................................................................................................................................................................11

FINANCIAL REPORT FOR YEAR END 31ST MARCH 2016 .....................................................................................................................13

STATEMENT OF INVESTMENT PARAMETERS & OBJECTIVES (SIPO) ......................................................................................................16

NGATI RONGOMAI IWI CHARITABLE TRUST .........................................................................................................................................17

TE NGAHERE O WAIONE LIMITED PARTNERSHIP ...............................................................................................................................18

TE PUMAUTANGA O TE ARAWA UPDATE ............................................................................................................................................20

TE ARAWA GROUP HOLDINGS LTD UPDATE .......................................................................................................................................22

OKATAINA OUTDOOR EDUCATION & RECREATION CENTRE ................................................................................................................23

2014-2020 STRATEGIC PLAN UPDATE ................................................................................................................................................24

Mission Statement

“Hei manaaki, hei tautoko i ngā taonga tuku iho o rātou mō tātou - Kia mau ki te aroha”

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AGENDA

VENUE: Rakeiao Marae

DATE: Sunday 31st July 2016

TIME: 10:00am

09:00am – 10:00am to sign attendance register

1. Karakia/Mihimihi

2. Apologies

3. Minutes of last Annual General Meeting

4. Chairman Report

5. Financial Report

a. Ngāti Rongomai Iwi Trust

b. Ngāti Rongomai Charitable Trust

c. Statement of Investment Parameters and Objectives (SIPO)

6. Ngāti Rongomai Iwi Charitable Trust

7. Te Ngahere o Waione LP

8. Te Pumautanga o Te Arawa update

9. Te Arawa Group Holdings Ltd update

10. Okataina Outdoor Education Centre

11. Strategic Plan Update

12. General Business

13. Trustee Election Results

14. Karakia whakamutunga

Kai Hakari to follow.

Howard Morrison

CHAIRMAN

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MINUTES OF ANNUAL GENERAL MEETING NGĀTI RONGOMAI IWI TRUST

MINUTES OF THE ANNUAL GENERAL MEETING

HELD AT NGAPUMANAWA MARAE

ON SUNDAY 13 SEPTEMBER 2015 AT 10.00AM.

CHAIRMAN: Howard Morrison.

SECRETARY: Murray Patchell

ATTENDANCE: 34.

MIHI & KARAKIA: George Epapara

APOLOGIES: Nil.

MINUTES OF PREVIOUS MEETING:

RESOLVED: “Of the previous meeting held on 30 November 2013 were taken

as read and confirmed.”

(Te Ohu Wikingi/David Pearson) Carried

Te Ohu Wikingi queried if there was a policy on Marae payments. To be discussed

in general business.

CHAIRMAN’S REPORT:

The Chair tabled and read his report.

RESOLVED: “That the Chairman’s report be adopted.”

(Howard Morrison/Timi Te Po Hohepa) Carried

Gloria Hughes commented that the iwi members need to know that Te

Pumautanga o Te Arawa (TPT) is operating dysfunctional. A SGM was held after

the AGM but there has been no resolution. A group is looking at High Court action.

Her concern is that nothing has come back to beneficiaries, that our claim is at

risk. This is a major concern and she feels this needs to be raised. Further

discussion deferred to general business.

The Chairman said the trustees were aware of the issues and hoping this can be

resolved.

Merehira Savage advised the trustees were trying to improve communication to

hapu members.

FINANCIAL REPORT:

Owen Mitai-Wells from Deloitte took the meeting through the 2014 audited

financial statements and the 2015 unaudited statements.

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Sir Toby Curtis queried the overdraft arrangement and why this had occurred with

the $1 million cash settlement.

Merehira Savage explained that funds were applied to Marae grants and the

balance invested in Geyser Community Foundation. These funds can only be

used for charitable purposes.

Sir Toby Curtis queried if all options were considered before funds were placed in

Geyser. Merehira Savage said this was a decision of the previous trustees.

Current trustees are looking at a SIPO now that funds had been withdrawn from

Geyser.

Gloria Hughes said the trustees had to follow the TPT rules at the time. She said

that Ngāti Rongomai were the only group that went outside and sought special

advice from Hulton Patchell and then decided to invest with Geyser.

Sir Toby Curtis requested an explanation from Murray Patchell.

Murray Patchell explained the background to the Geyser investment which was in

accordance with the trustees’ decision and authorised under the Trust Deed as

approved by the iwi. The trustees had made substantial grants to Marae and

placed the funds into investment with Geyser for long term growth. This was done

with the expectation of dividends from TPT which have not eventuated. The

trustees then incurred costs of negotiation to fix up the problem with the Outdoor

Centre and short term bank overdraft facility was arranged. He said he was

comfortable with the strategy initially by the trustees and that the new trustees had

put a lot of effort into resolving the financial position and he was comfortable with

the change that had occurred to establish the Trust’s own charitable arm, and take

control of its charitable funds.

Steve Te Moni added, to make it clear, that the debt was incurred by the previous

trustees and not the current trustees.

Owen Mitai-Wells explained that the Geyser funds had grown from $660,000 to

$787,618 on withdrawal. Te Ohu Wikingi acknowledged that the funds remained

as charitable and that the trustees will need to look at how to utilise these funds.

Owen Mitai-Wells noted that there was quite a lot of flexibility around the use of

these charitable funds.

RESOLVED: “That the audited financial statements for the year ended 31 March

2014 be received.”

(Te Ohu Wikingi/Sir Toby Curtis) Carried

Owen Mitai-Wells further explained a suggestion that the audit of financial

statements be dispensed with to save costs of around $3,000. He said the assets

were relatively straight forward and not a large number of transactions and it was

felt this cost was not necessary.

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RESOLVED: “That the 2015 financial statements be received and that the audit

be dispensed with.”

(Te Ohu Wikingi/Steve Te Moni) Carried

TE ARAWA GROUP HOLDINGS:

Willie Emery presented the summary of the 2014 TAGH results which had been

provided by the company.

Te Ohu Wikingi queried when affiliates will get access to their assets. Willie

advised that the trustees can’t answer that but will take the question back to

TAGH. It is likely this will not be until expiry of the agreement in 2043.

Te Ohu Wikingi said he would like to see a review done and suggests the trustees

ask the question, have the discussion and see what happens. Gloria Hughes

advised that under the Deed of Settlement, TPT are the parent body that need to

sort things out for the benefit of the iwi.

Merehira Savage said the trustees will also be pushing for all beneficiaries to be

eligible to attend the AGM. Steve Te Moni noted it may not be permissible under

the TPT Deed.

RESOLVED: “That the TAGH report be received.”

(Willie Emery/Timi Te Po Hohepa) Carried

Sir Toby Curtis suggested that TAGH be complimented on their excellent

investment outcome. Chairman confirmed this will be done.

Steve Te Moni queried if the dividends are likely to be paid.

Willie Emery advised that there had been a change of directors at TPT. Wally

Haumaha has been replaced by Geoff Rice. Colleen Neville has replaced Ian

Boyd as CEO. Willie understands that the $100,000 dividend may be brought

forward to January 2016.

NGĀTI RONGOMAI CHARITABLE TRUST:

Frances Teinakore-Curtis tabled and read the Charitable Trust report.

RESOLVED: “That the Charitable Trust report be received.”

(Frances Teinakore-Curtis/Te Ohu Wikingi) Carried

Te Ohu Wikingi suggested that the trustees consider Marae grants under their

policy.

Merehira Savage advised the trustees were working on policies. She added that

on the next rotation of trustees, the Charitable trustees will be 3 Ngāti Rongomai

Iwi trustees plus one from Rakeiao Marae and one from Ngapumanawa Marae.

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Chairman commented that a considerable amount of work had been put in by

Merehira and Frances to get this work done.

2020 STRATEGIC PLAN:

Merehira Savage reported on progress with refining the strategic plan which must

be accepted by the iwi before it becomes the official plan.

Steve Te Moni sought clarification that the trustees are taking a governance role

over iwi assets when he thought the purpose was to distribute these back to the

original owners through the mana whenua process.

Gloria Hughes said that people need to understand the Deed of Settlement. The

CNI mana whenua needs to be resolved before anything comes back to iwi. She

said these assets are still held with TPT.

Gloria Hughes congratulated the trustees on their work. Her passion is for Ngāti

Rongomai and she congratulated the trustees on developing their strategic plan.

This has her full support and is a great outcome.

The Chairman said it was positive for everyone going forward, all working together

and iwi support is appreciated.

RESOLVED: “That the draft 2020 strategic plan be accepted.”

(Gloria Hughes/Te Oho Wikingi) Carried

GENERAL BUSINESS:

1. Te Ohu Wikingi queried the 99 Sala Street premises. He had been trying to

access this for a lease unsuccessfully. Gloria Hughes explained this was part of

the settlement with the Crown for 3 years at no cost with no subletting. It was

messy for DOC and she was concerned to hear that there were costs associated.

She said Helen Nathan has the files. Te Ohu Wikingi said he had a proposal for

leasing the premises and asked the trustees if they can look at this.

2. Gloria Hughes encouraged iwi to take an interest in what is happening at TPT.

She said the AGM was a disaster. Her concern is who is progressing the business

while the arguing is going on. She is concerned with iwi registers not being

updated. She would like to see a feedback meeting from the Trusts representative

on TPT so iwi can get this information. She felt that Willie Emery was not doing

this and is also not keeping the trustees up to date. She encouraged iwi to take

an interest in what was happening with TPT and to go to the meeting. It is their

duty to protect what is rightfully ours.

3. Gloria Hughes referred to the provisions in the Trust Deed for termination of

trusteeship for non-attendance. She queried why the trustees had not acted on

this. Chairman advised the trustees were aware of the rule. They had maintained

regular contact with George Epapara informing him of the Trust business. Gloria

Hughes said she was aware of George’s reasons for not attending but felt the

Trust should have 5 active trustees.

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Willie Emery said the trustees respected George’s position and kept him informed.

If he wished to resign then the trustees would accept that but otherwise respect

his position.

4. With regard to TPT, Willie Emery said he was surprised if the trustees were not

happy with his reports as he had not heard that. He is happy to go to other

meetings if desired to provide the information. He referred to the voting issues

with TPT and changes that had occurred with political issues. Voting had moved

since the 2013 elections and was now split. He said there was now a co-

chairmanship with Alan Skipworth and Eru George and they are still trying to work

things through. A 2 day wananga is to be held to try and resolve issues. Willie

said he was there to do the best for Ngāti Rongomai and his intention is to vote

for the majority.

5. Steve Te Moni said that we are all responsible and it should not be put on one

person. On behalf of the Marae Reservation Trust he would like to ask for

assistance to fix the wharekai to leverage to obtain more funding. Te Ohu Wikingi

supported that. Merehira Savage said the trustees were still working on

distribution policies and hoped to finish this by the end of the year. This tono can

be considered then by the Charitable Trust.

6. Steve Te Moni said he had received a complaint about a trustee giving committee

members a hard time. They are going through a process of reconstruction and

would appreciate if trustees worked with them to resolve their issues. Merehira

advised she had apologised to the trustees and the committee member and

agreed the trustees need to be working together, not against each other.

7. Willie Emery suggested the Marae tono be put in writing to the trustees.

8. George Epapara responded on his position and advised he was aware of the

attendance rules. He said all trustees are working and he had difficulty making

meetings due to his personal work commitments. He said it had taken time for

things to work out. He had met with the Chair to discuss his non-attendance. He

felt it was important that an elder stays on the Trust and he is happy to continue

in that role. The question was asked from the floor if he would resign due to his

commitments. George Epapara said it was likely he would step down at the next

election.

9. Willie Emery advised that registration forms were available for next year’s election.

10. Steve Te Moni said that 3 year term of office is not long as trustees were only just

getting on top of the business. He would be concerned about changes at the next

election and suggested people think about the process if the trustees are not re-

elected. Willie Emery said it was entirely up to the whanau who they wish to elect.

Merehira Savage said the trustees were working on a review of the Trust Deed

and this may come up next year.

11. Gloria Hughes responded to personal attack on the previous trustees. She said

the previous trustees worked hard and if someone doesn’t think they did, they

should keep their opinions to themselves.

12. Raewyn Bennett congratulated the trustees on their work. She spoke of the issues

around the shipwrecked Rena and invited people to join the Ngāti Makino

submission next week.

13. Wairangi Whata acknowledged the work of the Runanga. She advised the Te

Arawa Partnership model is progressing and encouraged people to vote.

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14. Te Ohu Wikingi commented to Willie Emery that communication was the key. In

respect of George Epapara, he said the koeke was an important role. He

encouraged people to go to the hui to get information and thanked the Committee

for their work.

15. Nepia Te Rangi endorsed the committee work. He felt they may need more time

to get their work done. His priority is education and he was concerned with the

Kura and enquired if the Trust land could be made available. Chairman

acknowledged that children are the future and he advised the issue was with the

Kura to consider. Merehira Savage said that all options need to be considered for

the Outdoor Centre land. There are quite a number of issues that need to be

considered to make it work for the Kura. Chairman advised the trustees will follow

up on this take

16. Sir Toby Curtis said it was up to the trustees to consider the trustee non-

attendance issue and he felt that this had been done. In regards to the school, he

is meeting with the Minister of Education and will raise this. In respect of TPT he

advised that he attended a hui and got the impression it was well run. He felt they

were going through some issues at the moment but this is not uncommon for

organisations of this nature. He encouraged people to support TPT where we

can. He was concerned with Te Koutu pa and felt this needed to come back to

Ngāti Rongomai as Rakeiao was buried there. It should not have gone out of

Rongomai hands. George Epapara had a different view from Sir Toby Curtis and

it was acknowledged that a meeting needs to be held with Tarawhai to discuss.

Timi Te Po Hohepa agreed a hui should be held. In respect of the Outdoor Centre

he felt trustees should speak with the original owners of the land.

17. The Chairman thanked the Rakeiao Marae trustees for their support to Ngāti

Rongomai Iwi Trust.

18. George Epapara acknowledged the work of the Secretary Murray Patchell and the

recent passing of his daughter.

Meeting closed at 1.05pm with karakia from George Epapara.

Signed as a correct record

CHAIRMAN

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CHAIRMAN REPORT Tēna tātou katoa, kia tatou e noho mai nei ki raro i te tāhūhū o tēnei whare tūpuna, huri noa i

te iwi o Ngāti Rongomai.

Ko koutou te hunga e au tonu ana ki nga tikanga ki nga taonga i waiho e o mātou tūpuna,

tēna koutou katoa.

Kia ratou kua huri ki hawaiki nui, hawaiki roa, hawaiki pāmamao, ki nga tau kahurangi haere,

haere, haere atu rā.

It gives me great pleasure to present the 4th Annual Report for Ngāti Rongomai Iwi Trust

(NRIT) for the year ended 31st March 2016.

I would like to thank my fellow Trustees, our accountants Murray Patchell and Owen Mitai-

Wells for their unprecedented commitment, and the hard work you have all given to the Trust

these past 2.5years. Nga mihi kia koutou.

FINANCIAL POSITION

Since our last AGM, held 10months ago, our financial position has strengthened, there is

growth in our equity and our income stream. This is identified in our Financial Annual Report

OKATAINA OUTDOOR EDUCATION AND RECREATION CENTRE (OOERC)

These are important times for our iwi and today we celebrate the return of one of our whenua.

With the handover signed off and completed, the Trust has put in place a 6month management

plan to minimise any disruption to the current working schedule, and should there be changes

within the trustees after today, measures have been put in place to ensure a smoother

transition. To recognise thus historical event the Trust has prepared for a celebration

ceremony to be held later this year. This ceremony will formally recognise the return of our

whenua and those involved in that process. An update is provided in the Annual Report.

99 SALA STREET LEASE

As of 30th June, 2016 we ceased to collect any further rentals from the DOC premises located

on Sala St. When considering the effort of the trustees; to engage agents, sourcing a suitable

tenant, viewing by prospective tenants ended with a pleasing result for the trustees.

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FINANCIAL INVESTMENTS

Investments are an important factor when looking to generate long and short term financial

stability for the Trust. When opportunities present themselves, the questions you ask of

yourself are; Does it meet your growth expectations? Have you carried out a thorough due

diligence? Wat are the risk factors? Have we followed the procedures?

The development and implementation of our Statement of Investment Parameters and

Objectives (SIPO) helps to ensure these points guide us.

The Trust’s focus and goal is to create financial wealth, grow the asset base, increase

cashflow and in return fulfil the vision we share as a Trust.

TE NGAHERE O WAIONE LP

A joint venture encumbering both NRIT and Waione 3B8 Incorporation has been an exciting

and interesting development for us, bringing together two separate entities in a business

model that will help drive the economic, cultural and social benefits for its shareholders and

beneficiaries. This joint venture meets our obligations as per our 2020 Strategic Vision. An

update on Te Ngahere o Waione LP is provided in this report.

TRUSTEE ELECTION

Today marks the opportunity for new trustee(s) to sit on the Trust and contribute to our vision

and aspirations for our Iwi. Also, a further two trustees will be appointed to the Ngāti Rongomai

Iwi Charitable Trust (NRICT) represented from each of our marae Rakeiao and Ruato. We

look forward to a collaborative, transparent and exciting term.

2016 AND BEYOND

The 2014-2020 Strategic Plan Update provides the next tenure of goals and objectives, to

ensure the business continuity of the Trust.

Naku noa na,

Howard Whakataki Morrison

Chairman

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FINANCIAL REPORT FOR YEAR END 31ST

MARCH 2016

Copies of NRIT and NRICT full Financial Reports will be provided. This summary is not to

replace those statements but to provide a snap shot of NRIT and NRICT financial results.

SUMMARY OF FINANCIAL RESULTS FOR NGATI RONGOMAI IWI TRUST

The main source of income was; interests received, and rental from the DOC premise and the

OOERC. The Total Expenses of $47,739 for NRIT were made up of the following:

Accounting & Secretarial 14,404.00

Audit Fee 460.00

Annual General Meeting 2,210.00

Bank Charges 1,886.00

Depreciation on Assets 16,420.00

General Expenses 1,084.00

Interest 8,501.00

Legal Costs 3,000.00

Negotiation Costs (1,199.00)

Printing, Stationery & Postage 613.00

The Trust has accumulated tax losses of $124,939 to carry forward into 2017 financial year.

As a Maori Authority the Trust’s tax rate is 17.5%.

2014 2015 2016 2017 Budget 2018 Budget

Income $70,491.00 $4,000.00 $8,678.00 $106,500.00 $105,898.00

Expenses $151,552.00 $72,148.00 $47,739.00 $70,600.00 $44,557.00

Surplus/Deficit $(81,061.00) $(68,148.00) $(38,701.00) $35,900.00 $61,341.00

$(100,000.00)

$(50,000.00)

$-

$50,000.00

$100,000.00

$150,000.00

$200,000.00

Statement of Performance

Annual Dividend

from TAGH of

$100,000

commences in

2016/2017

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ASSETS AND LIABILITIES

ASSETS 2015 2016

Bank Accounts and Debtors 13 15,159

Land and Buildings 1,143,697 1,127,277

1,143710 1,142,436

LIABILITIES

Bank Overdraft and Creditors 72,158 11,390

Loans 70,000 168,197

142,158 179,587

NET ASSETS 1,001,552 962,849

Land and buildings are recorded at the 1 July 2014 rating valuation, less accumulated

depreciation.

During the year a loan of $168,197 was made from the NRICT to repay the Rakeiao Marae

loan of $70,000 and the bank overdraft.

Since balance date the NRICT has spent $21,000 in purchasing the OOERC chattels to enable

the facility to continue operating.

Our focus is:

“to INVEST and BUILD”

Rather “to INVEST and

DISTRIBUTE”

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SUMMARY OF FINANCIAL RESULTS FOR NGATI RONGOMAI IWI CHARITABLE TRUST

In October, 2015 the amount of $787,618 was transferred to NRICT from the Geyser

Community Foundation.

The main source of income came from the investments interest revenue. Bank fees was the

only expense this year.

j

NRICT Total Current Assets are a total of $790,785. 79% of the Total Current Asset of

$622,589 is Cash and 21% of the Total Current Asset of $168,197 is NRIT Term Loan.

No Distributions or Grants were distributed this year.

2016 AND BEYOND

This year another Term Loan has been provided to NRIT towards Te Ngahere o Waione LP.

The total NRIT Term Loan has committed to NRICT a 5% per annum interest rate of return

until the completion of the Term Loan is paid in full.

This 5% per annum interest is more attractive than the 3.35% per annum rate which is what

the Bank(s) Term Deposit(s) are offering.

The annual interests made on this NRIT Term Loan will fund future grants and distributions

policies.

Bank Accounts and Cash

79%

Debtors and Loans

Receivables 21%

Total Assets

Bank Accounts and Cash Debtors and Loans Receivables

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STATEMENT OF INVESTMENT PARAMETERS

& OBJECTIVES (SIPO)

INTRODUCTION

This SIPO was prepared for NRIT and NRICT and is intended:

To set out the governing decisions about investments in relation to Ngāti Rongomai Iwi

financial and operational assets; and

To support the achievement of the vision, mission and strategic goals of NRIT and

NRICT; and

To provide guidance, controls and performance benchmarks to the trustees charged

with investing and managing the financial assets of NRIT and NRICT.

CORE BUSINESS

To receive all benefits, monies and/or property due, payable or transferable to NRICT and to

NRIT as an affiliate of TPT.

INVESTMENT OBJECTIVES

The Trustees have determined the following objectives:

To protect the Trust assets for Ngāti Rongomai Iwi and their descendants.

To maintain and grow the asset base and income over time.

To work with other Ngāti Rongomai entities to achieve mutually beneficial outcomes.

To ensure diversification of investments to mitigate risk between direct asset ownership

and passive investments.

Consider new investments that are land based and preferably local.

Provide sufficient income to maintain the trust’s distribution policy and provide further

funds for investment.

New investments will be required to provide steady income streams at a rate of return

higher than on short term deposit and in line with specific industry benchmarks.

To maintain adequate cash reserves for contingencies.

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NGATI RONGOMAI IWI CHARITABLE TRUST As always NRIT remains committed to supporting matauranga Māori, protecting our taonga

tuku iho and revitalising our marae. NRIT understands that Te Kotahitanga is our greatest

strength therefore togetherness is the only forum which we can work together in order to move

forward as one.

The Geyser Community Foundation is a Charitable organisation that has held the amount of

$787,618 on behalf of NRIT to fund charitable distributions to beneficiaries of Ngāti Rongomai

descent. These funds were held by Geyser Community Foundation until such time that NRIT

was able to establish a Charitable Trust.

On the 25th May 2015, the NRICT was approved as a charitable entity with the Charities

Commission. In August 2015 these funds were transferred to NRICT.

This Charitable Trust is a new entity providing charitable purposes for Ngāti Rongomai Iwi

descendants. The NRICT will also assist in achieving NRIT’s 2020 strategic vision.

2016 AND BEYOND

No Distributions or Grants have been issued as the NRICT Trustees are yet to develop the

Policies and Procedures.

This year the NRICT will have the following governance made up of 3 trustees from the NRIT,

one trustee from Rakeiao Marae Trust and one trustee from Ruato Marae Trust.

Also, this year the NRICT has contributed to NRIT for Te Ngahere o Waione LP Joint Venture

Investment in the Forestry Industry. The NRIT has committed to a 5% per annum interest rate

of return until the completion of the Term Loan.

STILL TO ACHIEVE

FOR 2016

Investment Policy

The Distribution of Funds Policy for Scholarship/Grants

Receiving of Funds/Grants Policy

Insurance Policy

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TE NGAHERE O WAIONE LIMITED

PARTNERSHIP NRIT have been fortunate to enter into a joint venture partnership with Waione 3B8

Incorporation to invest into the re-plant of 234 hectares in the forestry industry. One of the

key kaupapa between NRIT and Waione 3B8 Incorporation are the values that we share. As

with all investments it must make sense financially, but for Maori it is essential that we find

partners with the same values. Such a value is looking firstly at our own whanau, hapu and

iwi, who share the same whakapapa, kaupapa and tikanga therefore we both share the same

beneficiaries.

To ensure that NRIT trustees were meeting our obligations a comprehensive DUE

DILIGIENCE process with priorities was conducted. These priorities were;

INVESTMENT DETAILS

Forestry Investments are long term investments with a 25-30year rotation cycle.

NRIT will contribute cash at a desired interest rate of 8%

If Waione 3B8 Incorporation fails to meet the proposed schedule contribution, NRIT has

the first option to meet that contribution. This will allow NRIT to increase our share.

A detailed Exit option has been put in place to allow NRIT to exit at some point in the

future if required and be provided the desired interest rate according to the forecast

scheduled proposal.

DUE DILIGENCE ACHIEVED

Detail Business Case Proposal received

Independent Expert, John Hura (NZFM, Taupo Forests)

Legal Advisor, Greg Burton of Lance Lawson

Financial Advisors, Murray Patchell & Owen Mitai-Wells of Deloitte

Included our cultural ethics based on whakapapa, kaupapa & tikanga

Comprehensive Business Plan received and outlined the following

Analysis on the required costs inputs for the Forestry.

Forecast assumptions

Negotiated invested share on interest

Identified risks through the tenure

Operational and management plans of the JV

Environmental landscape

This process took 17 months before a final approval was received

Te Ngahere o Waione LP formed for NRIT with a 48.58% Share Interest in the JV

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An analysis of the potential returns that could be achieved was based on current Forestry

Industry information. The current cycle of tree prices is based on 7year cycles. Timber price

models were provided over the past 12years. One of the benefits to forestry is that the trees

can be cut as early as year 25 and as late as 30 years old which means we have a window of

time to ensure the best prices for our logs.

The table below provides a snap shot comparison of a forestry and non-forestry investment

forecast over a period of 25 years.

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000Ye

ar 1

Year

2

Year

3

Year

4

Year

5

Year

6

Year

7

Year

8

Year

9

Year

10

Year

11

Year

12

Year

13

Year

14

Year

15

Year

16

Year

17

Year

18

Year

19

Year

20

Year

21

Year

22

Year

23

Year

24

Year

25

Year

26

Year

27

JV Partner Investment Value based on the timing of the Investment

NRIT CONTRIBUTION Waione 3B8 CONTRIBUTION

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

20

31

20

32

20

33

20

34

20

35

20

36

20

37

20

38

20

39

20

40

20

41

25year Financial Forecast

No Forestry With Forestry

20 | P a g e

TE PUMAUTANGA O TE ARAWA UPDATE Ngā mihi ki a koutou o Ngāti Rongomai.

In 2013 under the guidance of the NRIT Trustees, I was appointed as our affiliate

representative on to Te Pumautanga o Te Arawa (TPT). This position was not an easy

role to fill but the work and impacts were dealt with through each meeting with a report

update provided to our NRIT Trustees.

KEY POINTS

27/03/15 - TAGH Directorship rotation of Wallace Haumaha (an internal TPT

Trustee appointment) was replaced by Geoff Rice.

29/05/15 – TPT appointed Eru George as a trial co-chair position alongside Alan

Skipwith in order to re-establish confidence and a better governance environment.

30/06/15 – TPT appointed Wally Tangohau as General Manager. Mr Tangohau

brings experience, confidence and stability to TPT.

31/07/15 - TAGH Directorship rotation of Fred Cookson (an Independent director)

was replaced by Hamish Bell.

25/09/15 – TPT appointed Karen Vercoe as the new Chairperson with Eru George

as Deputy Chair.

TE PUMAUTANGA O TE ARAWA CHARITABLE TRUST (TE ARAWA TANGATA)

After the 2015 AGM a decision was made to curtail the activities of Te Arawa Tangata.

Commentary suggested that Te Arawa Tangata was not providing services that directly

benefited our beneficiaries. In addition, TPT was determined that reductions in the

operating cost for TPT needed to occur because the external funding to Te Arawa

Tangata was not sufficient to sustain their overall operating cost, and as a consequence

TPT was no longer in a position to support or provide on-going funding to the activities of

Te Arawa Tangata.

MANA WHENUA

Please refer to TPT Annual Report (where copies will be made available on the day) for

an update on Mana Whenua within TPT.

21 | P a g e

MEETINGS & TRUSTEE FEES

Through serious considerations scheduled meetings have been reduced and the

trustee’s fees have been fairly adjusted to reflect the work and commitment required.

OPERATIONS

The overall staffing levels from both TPT and Te Arawa Tangata have reduced

considerably. This is a consequence of Te Arawa Tangata going into abeyance from 3-0

staff and TPT from 6-3 staff. The result of this has achieved a considerable reduction in

the operating cost for TPT and the current staffing level is managing competently with

minimal disruption to the operational management and governance requirements.

OFFICE RELOCATON

In July 2015, TPT office relocated from Marguerita Street to Pukaki Street resulting in

expense reduction from $55k to $25k per annum. It is forecasted that a further savings

of $8k will be made when the TPT office relocates again in August this year.

FINANCIAL UPDATE

TPT financial movement saw operating cost reductions of $756k for the year end 2015 to

$356k for the year end June 2016. This is a considerable saving of $400k. Unfortunately,

the impacts of very low Term Deposit investment rates from Banks is reflecting poor

performance on the Capital Investment and it is not likely to improve over the next 2 to 3

years.

EQUITY

TPT approved the engagement of Ken Hingston as a facilitator to re-commence

discussions on the equity matter. This is a work in progress with a lot of research being

undertaken on historic information and the engagement from the Office of Treaty

Settlements has occurred to assist the decision making process.

Nga Mihi.

William Whakataki Emery

Ngati Rongomai Iwi Representative on Te Pumautanga o Te Arawa

22 | P a g e

TE ARAWA GROUP HOLDINGS LTD

UPDATE Te Arawa Group Holdings Limited (TAGH) is a subsidiary of TPT responsible for managing

the commercial assets within TPT. The long-term vision is to create wealth and opportunity

for inter-generational benefit, and has investment interests in the forestry, agribusiness,

tourism, geothermal and property sectors. For the 15month period ended 30th June, TAGH

reported a group EDITA of $10.093million. Group Profit for the year was $7.417million. Total

group assets have increased 12% to $99.580million and retained earnings have increased

44% to $24.373million. This financial year encompassed a fifteen-month period due to a

change in balance date from March to June which aligned to the priority investment sectors

(particularly forestry and agribusiness).

TOURISM SECTOR

Waiotapu Thermal Wonderland continues to generate excellent returns with a record visitor

numbers in 2015 financial year and continuing into 2016 financial year.

FORESTRY SECTOR

TAGH remains actively involved in the operations of Kakano Investment Limited Partnership

(KILP), which owns a 2.5% stake in Kaingaroa Timberlands (of which TAGH’s share KILP is

20.6%). KILP is a significant vehicle for iwi investment into forestry.

AGRIBUSINESS SECTOR

TAGH purchased its first fully-owned kiwifruit orchard in the 2015 financial year, a premium

green and gold property at Mark Road in Te Puke. At the close of the year, TAGH was in the

process of settling on a second green and gold orchard at Brown Road in Te Puke.

GEOTHERMAL AND PROPERTY SECTORS

TAGH continues to maintain relationships with key entities in other priority investment sectors

to remain cognisant, particularly Genesis Energy (geothermal) and Tainui Group Holdings. A

co-investment agreement with Tainui Group Holdings was signed in April 2015 and both

parties are looking for opportunities to collaborate on projects in any relevant sector,

particularly property.

23 | P a g e

OKATAINA OUTDOOR EDUCATION &

RECREATION CENTRE On Saturday 25th June 2016 marked a return of the Okataina Outdoor Education and

Recreation Centre (OOERC) to Ngāti Rongomai Iwi Trust (NRIT). This small yet private event

was held directly after the completion of the final OOERC Annual General Meeting.

Both current and former NRIT Trustees attended this small occasion to celebrate a historical

significant for Ngāti Rongomai in the return of our whenua. We were very fortunate to have

George Epapara (Uncle Tuti) to speak to all of the attendees on the history and prominence

this whenua has to Ngāti Rongomai. His stories as a young boy growing up in the area prior

to the construction of the OOERC resonated with all that were present.

On the 1st July 2016, the OOERC was transferred to the NRIT and has been managing the

OOERC since. With the return of the OOERC to the NRIT, the following priorities have been

achieved:

ACHIEVED FOR 2016

Confirmed bookings from July 2016 to the end of 2017

Client bookings to be made through Deloitte

Client Payments to made through Deloitte

Maintenance concerns/issues to be followed up and completed

Lawn maintenance, Property check and client check in/outs to continue by on-site caretaker

Building Insurance (including chattels) recently renewed by AON Insurance

• Trust is GST registered to fall in line with GST threshold of $60,000 p/a.

24 | P a g e

2014-2020 STRATEGIC PLAN UPDATE

STRATEGIC GOALS FOR 2014-2016

Achieved 75% of 2014-2016

Strategic Goals

PAKIHI

Sala Street Sub-let

Planning for the return of the Outdoor

Centre

TAAKE PUTEA

Develop Financial

Policies and Processes

Prepare SIPO and

Investment Plan

TOI WHAKAPA

Re-ignite the koeke forum

Inform and update our

beneficiaries

KAITIAKITANGA

To Learn our taonga tuku iho of Ngāti Rongomai

within TPOTA

Learn more of Ngāti

Rongomai

NGA MANA WHAKAHAERE

Review Trust Business

Develop a Strategic Plan

Develop a Charitable

Trust

Prepare for AGM

STILL TO ACHIEVE

FOR 2016

Develop Financial Policies and Processes

Inform and update our beneficiaries

To learn our taonga tuku iho of Ngāti Rongomai within TPT

STRATEGIC OBJECTIVES

PAKIHI

Develop our Commercial

Assets

TAAKE PUTEA

Maximise our Revenue

TOI WHAKAPA

Improve our Communication

KAITIAKITANGA

Protect our Taonga Tuku

Iho

NGA MANA WHAKAHAERE

Be an effective Iwi Trust(s)

25 | P a g e

STRATEGIC GOALS FOR 2016-2018

NGATI RONGOMAI IWI STRUCTURE

NGĀTI RONGOMAI

KOEKE

NGĀTI RONGOMAI IWI TRUST

Ngāti Rongomai Iwi Charitable

Trust

Okataina Outdoor Education &

Recreation Centre

Waione Forests GP

Te Ngahere o Waione LP

Te Pumautanga O Te Arawa

Te Arawa Group Holdings

PAKIHI

Prepare for the transfer of the Outdoor

Centre

Market Research on

the 9hectares

TAAKE PUTEA

Investigate Joint Venture Partnerships

Investigate Investment Acquisitions with TAGH

TOI WHAKAPA

Review and update the

Registrations of current

beneficiaries

Develop a website and establish a

facebook page

KAITIAKITANGA

Review the cultural

redress areas

Develop an Iwi

Environmental Management

Plan and a Fresh Water

Management Strategy in alignment

with Te Arawa Lakes Trust

NGA MANA WHAKAHAERE

Complete Policies and

procedures for both Trusts

Prepare for re-election of

trustees

Review Trust Deed

Prepare AGM's

2016-2017 BUSINESS GOALS

NGĀTI RONGOMAI IWI TRUST (x5 Trustee)

Develop Financial Polices and Processes

Develop Annual Budget

Quarterly hui with Koeke

1st Update to our beneficiaries

Learn our taonga tuku iho within NRIT

Ratified Trust Deed

OKATAINA OUTDOOR EDUCATION CENTRE (x5 Trustee)

Forecast Cashflow with an Operational Plan and Budget

Health and Safety Policies and Procedures

Outdoor Recreation and Recreation Centre Ceremony Celebration

Marketing Plan and Communication Plan

Meet with Outdoor Education Trust to discuss joint initiatives

Environmental Plan and Cultural Impact Assessment

TPT Settlement Arrangement pre and post 2027

NGĀTI RONGOMAI IWI CHARITABLE TRUST (x3 Trustee)

Develop Annual Budget

Distribution Policies and Procedures

Receiving Funds Policies and Procedures

Applying for external funds and grants

TE PUMAUTANGA O TE ARAWA (x1 Trustee)

Beneficiary Registration

Our taonga tuku iho within TPT

WAIONE FOREST GP (x2 Directors)

Health and Safety Policies and Procedures

Forestry Plan

Please note: These business goals are work in progress and can be amended by NRIT