1 The Role of Maori Accountants in Maori Economic Development An External Perspective John Spencer Chairman, Tainui Group Holdings

2 Introduction Background Overseas NZ ICANZ

3 Dairy Industry & Maoridom Tribal Affiliation Political Elected Representatives Capital Structure $ in / $ out Future Generations Invest long-term Land Significant Centralised Activities Marketing Fisheries Loyalty

4 Tainui Group Holdings What went wrong Issues well documented People Impact Perception Bankers Commercial Environment General Public Lost Opportunities 10 year gap

5 Role of the Accountant Governance Accounting and Reporting Policies and Procedures Planning Investments Employees

6 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

7 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

8 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

9 Policies and Procedures Basic Policies Employment OSH Treasury Investment Capital Expenditure Level of Authority Internal Audit

10 Planning Mission Statement Strategic Plans – Commercial & Tribal 3 to 5 years Roadmap Targets Transition Budgets

11 TGH Mission Statement To maximise shareholder wealth by implementing a sustainable asset portfolio by appropriate financing and dividend policy

12 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

13 TGH Target Asset Allocation Growth Assets80% Property70% Equities10% Income Assets20% Cash5% Bonds / Fixed Interest15%

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

15 Employees Position Descriptions Remuneration Incentives Training Mentoring Staff Selection

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

17 Summary Vital role Set high standards Planning Integrity Pride Leadership