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The Role ofMaori Accountants inMaori Economic Development

An External Perspective

John SpencerChairman, Tainui Group Holdings

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Introduction

Background Overseas NZ ICANZ

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Dairy Industry & Maoridom

Tribal Affiliation

Political Elected Representatives

Capital Structure $ in / $ out

Future Generations Invest long-term

Land Significant

Centralised Activities Marketing Fisheries

Loyalty

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Tainui Group Holdings

What went wrong Issues well documented

People Impact

Perception Bankers Commercial Environment General Public

Lost Opportunities 10 year gap

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Role of the Accountant

Governance Accounting and Reporting Policies and Procedures Planning Investments Employees

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Governance

Tribal / Commercial Separation Different objectives Different skill sets Government

Asset Ownership Commercial

Board Charter Minutes / Action Lists Board Committees

Audit Remuneration

Legacy Issues Deal with them

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Board Charter

Role of the Board Structure of the Board Matters relating to Directors The Committees of the Board Integrity and Ethical Behaviour Audit Financial Reporting Timely and Balanced Disclosure Recognition and Management of Risk Performance Evaluation Chief Executive Officer

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Accounting and Reporting

Monthly Accounts Up-to-date Actual versus Budget Forecasts

Cash Flow Benchmarks and Targets

Investment sectors Similar institutions

Reporting to Trustees KISS Explain “why”

Interpretation Education process

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Policies and Procedures

Basic Policies Employment OSH Treasury Investment Capital Expenditure Level of Authority

Internal Audit

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Planning

Mission Statement Strategic Plans – Commercial & Tribal

3 to 5 years Roadmap Targets Transition

Budgets

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TGH Mission Statement

To maximise shareholder wealth by implementing a sustainable asset portfolio by appropriate financing and dividend policy

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Investments

Policy What How Local / Overseas

Asset Mix Use of Advisers and Experts Passive versus Active Need for a Business Case Use of Debt

JVs Security Project Debt versus General Debt

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TGH Target Asset Allocation

Growth Assets 80% Property 70% Equities 10%

Income Assets 20% Cash 5% Bonds / Fixed Interest 15%

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Land

Significance Need for a Return Property Mix Sale and Purchase of Property

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Employees

Position Descriptions Remuneration Incentives Training Mentoring Staff Selection

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The Future

Economic Power Select Industries / Sectors Ensure Beneficiaries benefit Learn from others

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Summary

Vital role Set high standards Planning Integrity Pride Leadership