The Role of Maori Accountants in Maori Economic Development by Fred Cookson

NATIONAL MAORI ACCOUNTANTS HUI

THE ROLE OF MAORI ACCOUNTANTS IN MAORI ECONOMIC DEVELOPMENT

August 5th & 6th 2005 HAMILTON

Fred Cookson Don Jefferies Sharp & Cookson Ltd KCSM Accounting Solutions

Chartered Accountants Peach Grove Road OPOTIKI

HAMILTON

fred@sharpcookson.co.nz don.jefferies@kcsmsolutions.com

MAORI ECONOMIC DEVELOPMENT?

Identify the economic wealth base or resource that requires

development.

DEVELOPMENT OF TRADITONAL RESOURCES

Land, lakes, rivers, waterways, harbours and the sea.

Significant areas of productive land and access rights to these resources is under Maori control.

OTHER

Development of intellectual, technological,

manufacturing and other resources. Tourism/Cultural resources.

TRADITIONAL RESOURCES - 3 F F F’S FARMING Sheep

Beef Dairy

FORESTRY Plantation Forestry Native Logging

FISHERIES ACE Trading Aquaculture catch & process Domestic & Export Fish Farming

AND MORE

HORTICULTURE/ VITICULTURE

Kiwifruit Avocado Macadamia Tamarillo/Passionfruit Grapes

CROPPING Maize/Green feed Squash

BLENDING RESOURCES FOR OPTIMUM RESULTS

Aquaculture/Educational/Tourism

Whakatohea - Opotiki Mussel farm proposal Te Arawa/Tuhoe - Koura Farming/Eels

Coastal Iwi - Paua/Kina??

Human capital and robust capital financing structures are required.

Pioneer industry is costly so reduce risk by getting the science right??

TRADITIONAL STRUCTURES

1. STRUCTURE: Maori Land Trust/Incorporation mandated Iwi Authority. 2. TAX STATUS: Maori Authority. 3. GOVERNANCE: Trustees/Committee of Management. 4. LEGISLATION: TTWM Maori Land Act 1993 Trust Deed/Constitution Trustees

Act/Maori Fisheries Bill. 5. ELECTION OF TRUSTEES: Life Term?? 6. ELECTION OF COMMITTEE: Rotational – 2 years. 7. CRITERIA FOR ELECTION: No specific criteria. Some Trusts by Whakapapa. 8. SIGNIFICANT RELIANCE ON EXTERNAL ADVISOR: The

Accountant/Lawyer/Farm Supervisor etc.

STRENGTHS WEAKNESSES 1. Asset Rich Cash Poor?? 2. Risk Averse Under utilised

Under performing assets

3. Good borrowing potential

Lack of capacity at governance level

4. Generally good group of external advisors

Reaction time to business opportunities

5. M.A tax regime

Management/Governance separation

6. Analysis and interpretation of financialinformation to base sound businessdecisions.

7. Advisors can be relied on too much.Who’s making the decisions?

8. Documentation inefficiencies causingtime delays

9. Governance/Outdated Governingdocument

STRENGTHS WEAKNESSES

ROLE OF THE MAORI ACCOUNTANT

“BUILD THE HUMAN CAPITAL”

1. CA qualification is important and eventually essential for you and the client.

2. Understand the business. Do you know what the business

is?? 3. Have empathy for Culture/Tikanga and know the

people/Trustees you are working with. Understand their capabilities.

4. Develop wealth strategies that will work. “Keep to the

Knitting”. Must be underpinned by sound/effective management.

5. Retain advice from experts on matters you know little about.

Build your own capacity. 6. Network information to cross check data. 7. Don’t be scared to give your honest opinion but be prepared to

back it with verifiable evidence. 8. Attend to the paperwork and ensure a high level of accuracy in

financial management issues.

ROLE OF THE MAORI ACCOUNTANT

“BUILD THE HUMAN CAPITAL”

ROLE OF THE MAORI ACCOUNTANT

“BUILD THE HUMAN CAPITAL”

9. Get authority – Minute keeping is very important. Present

information to shareholders to get their buy in. Build trust and don’t abuse it.

10. Don’t be side-tracked by whanau/political issues that may

hinder progress. 11. Don’t be side-tracked by “opportunities” deals that are outside

of the core business unless you know who you are dealing with. 12. Build relationships and build your own reference base –

network. Use industry information.