The Role of Maori Accountants in Maori Economic Development

1
The Role ofMaori Accountants inMaori 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 Assets 80
• Property 70
• Equities 10
• Income Assets 20
• Cash 5
• Bonds / Fixed Interest 15

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