ANNUAL
REP
ANNUAL REPORT
2014
Taratahi Annnual Report 2014
3000
learners
193% scanning
(MA ewes) Glenside,
Koromiko & Mangarata
99% scanning
7 campuses
(MA & R3 hinds)
$124, 750
scholarships for students
209 Primary Industry
Trades Academy students
88%
course
completions (sac)
100%
200
farms
support training
7,500
hectares
of farmland owned,
leased or managed
qualification completions
for equine students
10 years
training
in Taranaki
3216
cows milked
1,173,003
KGMS produced
winners of the...
Beef + Lamb New Zealand Sheep Industry Awards
‘Primary ITO Sheep Industry Trainer of the Year’
Education Institute for Excellence in Beef Industry
Training 2014 at the Hoof & Hook competition
Taratahi Annnual Report 2014
Contents
Chair’s Report
6
CEO’s Report
8
Dr Donovan Wearing – A Tribute
10
Reputable Student Success 11
Story: Confident In Farming Career – Paige Van Rompaey
11
Story: Diploma Helps Connect The Dots – Duncan Campbell
12
Story: International Travel Beckons – Hamuera Treanor
13
Reputable Farming Outcomes - Guardianship (Kaitiakitanga) and Best Practices
14
Industry Collaboration
14
Beef + Lamb New Zealand
14
Dairy NZ
14
Taratahi Wins at Beef & Lamb NZ Sheep Industry Awards
15
Healthy Competition Challenges Everyone to Succeed
15
Hoof and Hook 2014
15
Industry Leadership 16
Cow Efficiency in Hill Country Breeding Cow Herds, Koromiko Farm and Tautane
16
FarmIQ, Mangarata Farm
16
Successful Core Business
17
Scholarships Make Training Easier
17
Shepherd of the Year Competition Impressive
18
Māori19
Nā tō rourou, nā taku rourou ka ora ai te iwi
19
Partnerships and Collaboration
19
Taratahi Teams Up With Local Marae and School
20
International21
New Zealand Dairying – a New Direction For Japanese farmers
21
Success Through Collaboration
22
Financial Statements
23
Directory49
Taratahi Annnual Report 2014
Organisation Overview
Taratahi is New Zealand’s largest agricultural training
centre offering a variety of full-time and part-time
educational programmes. We are a unique training
establishment. Our system of governance includes
Ministerial oversight and an Act of Parliament.
Our mandate, as given to us by the Taratahi
Agricultural Training Centre (Wairarapa) Act (1969)
can be summarised into four points:
‹‹
‹‹
‹‹
‹‹
Attracting, Promoting and Preparing
New Zealanders from all walks of life
to an agricultural career.
Up-skilling the agricultural workforce.
Demonstrating best farm practice.
Disseminating best farm practice.
First established in 1919 in central Wairarapa, we were a
training farm for soldiers returning from the First World War.
We are now widely recognised, not only for our
historical contribution to New Zealand’s agricultural
sector, but also for our commitment to delivering
innovative training in an evolving industry. We
trained a total of 3,000 learners in 2014 and across
our farming portfolio, we managed over 50,000 stock
units of sheep, beef and deer and milked 3,216 cows.
Taratahi Annnual Report 2014
This scale of operations provides a valuable learning
environment and makes the repetition of skill possible
building student competence and confidence.
Our learners come to us for the following reasons:
‹‹
‹‹
‹‹
‹‹
‹‹
‹‹
‹‹
To explore a learning pathway in
primary industries.
To begin their career while they are still at school.
To complete pre-work training to find a job in the primary industries after graduating.
To upskill while working.
To gain real-life experience outside the
classroom and begin experiencing success
in learning (NCEA).
To experience practical learning environments.
To gain internationally renowned knowledge about farming practices.
Agriculture is New Zealand’s lifeblood and Taratahi
considers robust, future-proof training critical to our
country’s economy, employment, environment, and
national identity. Our goal is to achieve excellence as
a provider of essential industry training.
2014 Board of
Trustees
2014 Senior
Leadership Team
David Nelson (Chair)
Dr. Donovan Wearing (Late)
Representing Wairarapa Branch of
Federated Farmers of New Zealand
CEO 2014
Jan Tatham (Deputy Chair)
Jan Tatham
Representing Wairarapa
Agricultural and Pastoral Society
Acting CEO
John Jackman
(Until 31 July 2014)
Nigel Udy
Educational Delivery Manager
Representing Minister for
Primary Industries
Gillian Mangin
Craig Roberts
Representing Director General of
Ministry for Primary Industries
Business Delivery Manager
Barbara Kuriger
(Until 13 May 2014)
Paul Crick
Representing Primary ITO
International and Sheep and
Beef Manager
Paul McGill
Rebekah Dinwoodie
Representing Masterton
Agricultural & Pastoral Society
Education Partnerships Manager
Mavis Mullins
Tony Dowman
Representing Minister
of Education
Farm Business Manager
Professor Steve Morris
Representing Minister for
Primary Industries
Taratahi Annnual Report 2014
3
OUR VISION
A high performing
agricultural workforce
OUR MISSION
To build workforce skills in primary industries
demonstration and dissemination
of knowledge and skill
STRATEGIC GOALS
Reputable Student
Success
Reputable
Outcomes
Education delivery and
pastoral care
Kaitiakitang
practices
Alignment to
government
standards and priorities
Successful
models sup
outcomes
ORGANISATIONAL
CAPABILITIES
OUR CORE VALUES
OUR BEHAVIOUR
Ko Nga Uara
o Tatou Whanonga
‹‹ Learners and learning are #1
‹‹ Big picture, mind t
‹‹ Focus on results
‹‹ Focus on quality
‹‹ Work with integrity
‹‹ Reflect, change and
‹‹ Make a difference
‹‹ Be professional
‹‹ Protect our brand,
‹‹ Celebrate success
4
Taratahi Annnual Report 2014
through quality education; the
Farming
Industry Leadership
Successful Core Business
ga and best
Influencing positive
change
Financial sustainability
and motivated staff
Systems and
processes support
productivity
Partnerships are actively
developed and managed
for success
business
pport desired
RS
OUR PHILOSOPHIES
Ko Te Kaupapa
the detail
‹‹ ‘Real training on real farms’
‹‹ We farm where we teach
d evolve
‹‹ Learning opportunities are inclusive
it’s our future
‹‹ Kaitiakitanga
(guardianship of the land)
‹‹ The development of the person is as
important as skill acquisition
Taratahi Annnual Report 2014
5
Outgoing Chair’s Report
Ē ngā iwi, e raurangatira mā tēnā koutou katoa
Ka tū au ki te tihi o tōku maunga o Puketoi
Ka titiro iho ki te awa o Tiraumea e rere nei
Ki Ratahiwi hoki, te kāinga o tōku whanau
Tihei mauri ora ki Te Whai āo, ki Te āo Mārama!
Nei rā te mihi atu kia koutou, tēnā koutou katoa
Firstly, I would like to acknowledge the very strong
links of my whanau to the land. I acknowledge the
land which generations of my forebears nurtured
and cultivated at Ratahiwi in the Tararua district. I
acknowledge the flowing waters of the Tiraumea River
and sacred peaks of the Puketoi range.
I also acknowledge you and thank you for your continued
support of Taratahi Agricultural Training Centre.
Taratahi is unique in the world of education in that it
is a public entity and our Board is appointed by the
Minister for Primary Industries. Our Board represent
Wairarapa branch of Federated Farmers, Wairarapa
Agricultural and Pastoral Society, Masterton Agricultural
and Pastoral Society, Minister for Primary Industries,
Director General of Ministry for Primary Industries,
Primary ITO and Minister of Education. Our system of
governance (which includes Ministerial oversight and
an Act of Parliament) gives us a national responsibility
to ensure that all New Zealanders have the chance to
contribute to our most important industry.
Our vision, as outlined in our strategic plan, is for a
high performing workforce and our mission is to build
workforce skills in primary industries through quality
education. The demonstration and dissemination of
knowledge and skill keeps us true to the bequest of land
given to us by our benefactor in 1919, Sir William Perry.
Our strategic goals can be summed up in four key areas.
There is more information about these later in this Annual
Report where you can read some examples of the
wonderful work that we achieved throughout 2014.
The four key areas are:
Reputable Student Success – Education delivery
and pastoral care
Reputable Farming Outcomes – Kaitiakitanga and
best practices
Industry Leadership – Influencing positive change
Successful Core Business – Financial sustainability
and motivated staff
The reason we have these four key areas is because,
at our very core, Taratahi believes in bringing to fruition
6
Taratahi Annnual Report 2014
our benefactor’s dream. We believe in the positive
impact we can make through quality education
programmes and the extension of knowledge and
skill including the ability to enhance career prospects
for our graduates. We belive that the performance
of the global agricultural sector will increase through
upskilling the workforce and that its about the
development of the whole person; reaching their
potential through life-long learning.
The agricultural sector underpins the New Zealand
economy and as farms get bigger and more complex
there has been a considerable demand for robust,
quality vocational training. Recruitment of a skilled
and capable workforce has been identified as a key
component to achieving the Government’s target of
doubling the value of agricultural exports by 2025.
The challenge for all of us as a sector is to meet this
demand with enough people wanting to choose a
career in the primary industries and to support them
as they develop the skills, stamina and attitude to be
successful in their chosen field.
New Zealand requires an additional 1100 farm
workers each year to address the skills shortage that
the industry is experiencing. By 2025 the Ministry for
Primary Industries estimates that New Zealand will
need 93,000 additional skilled workers in the primary
sector and over 80% of these will be in vocational
areas. This is where Taratahi plays such a crucial role
in finding, developing, nuturing and training these
additional workers.
The priorities set by the Tertiary Education Strategy
(TES) are pivotal to our success. The TES clearly
outlines the expectations of the Government for
Tertiary Education and, while continuing to set high
expectations for outputs, efficiency and student
achievement, also signals a shift towards strong links
with industry, community and the global economy.
The TES priorities are interwoven through Taratahi’s
Education Principles.
One of Taratahi’s key achievements over previous
years has been the ability to partner with like-minded
organisations to open the door for more students to
become engaged in learning. 2014 continued to see
the strategic alliance with a range of iwi, universities,
institutes of technology and polytechnics, schools,
trusts and farms. We are now one year into our
relationship with Ngati Kahungunu Iwi Limited and
Tautane Station which is going from strength to
strength. Building on our relationships with Massey
University, Unitec and Southern Institute of Technology
has created more diverse pathways for our learners.
Engaging with Papawai Marae and Kuranui College in
Wairarapa has also enhanced additional avenues for
school students who may not have engaged with the
primary sector in the past.
The highlight of my year is always the opportunity
for me to attend some of our graduation ceremonies
throughout the country. Celebrating student
achievement is so fundamental to Taratahi and why we
do what we do. It is a hugely rewarding day for both
students and staff alike. Hearing from the graduates
about what plans they have for their future, whether
it be continuing with additional study or heading into
their first job or gaining the job they always wished for,
makes this an incredibly special day. Another special
highlight in 2014 was attending the Beef & Lamb
Sheep Industry Awards in Napier. It was an incredible
accolade to Donovan and his team for all the hard
work they have put in when Taratahi were awarded
the Primary ITO Trainer of the Year. This award is
an acknowledgement of the dedication af all staff
throughout the organisation and is an outstanding
achievement for Taratahi.
As my term comes to an end, I would like to sincerely
thank my fellow Board members for their governance,
input, and commitment to Taratahi throughout 2014. I
also wish to thank the staff of Taratahi for their ongoing
contribution to the organisation and their dedication
to creating positive outcomes for the 3000 learners
who chose to study with us in 2014.
Finally, I acknowledge the people who have been
parted from us over the past year. We continue to
remember them in our hearts. I specifically wish to
acknowledge the late CEO, Dr Donovan Wearing,
who was integral to the success of Taratahi over the
past seven years. His passion for Taratahi, for the
staff and for the students was palpable. He will be
dearly missed. His legacy lives on in the thousands of
graduates who will continue to fulfil his dream and as
Taratahi supports the vital many, not the lucky few and
seeks to teach the world to feed itself in a sustainable
manner.
Whatungarongaro te tangata toitū te whenua
As man disappears from sight, the land remains
David Nelson
Board Chair
Taratahi Annnual Report 2014
7
CEO’s Report
I wish to acknowledge you as interested parties of
Taratahi and thank you for your continued support
throughout 2014.
It was a very busy year and although not without its
challenges, the Taratahi team tackled 2014 with their
customary determination and commitment. Taratahi
staff have a fervent passion for what they do. We
have the capability to support applied research and
extension within a strong learning community and
create inclusive learning opportunities for all of our
students which encourage successful outcomes.
As farmers ourselves we understand the workforce
requirements needed to sustain and build the
capability of the industry. Skilled graduates are
required at all levels of the workforce and the success
in working with Massey University to reintroduce the
Diploma in Agriculture is one example of how we are
supporting this. The diploma students are part of
the answer to the shortage in the industry for skilled
graduates with sound knowledge and good practical
skills. There has been on-going demand for this level
of study to be offered and we are proud to be part of
the students’ journey.
We were thrilled to celebrate 10 years of training in
Taranaki and a move to new offices on the main street
in Stratford has been hugely successful. Over 150
students studied with us in Taranaki in 2014 at Levels 2,
3 and 4. Graduation day was once again the highlight
of the year as we celebrated the achievements of the
graduating students.
8
Taratahi Annnual Report 2014
2014 saw the first National Diploma in Agribusiness
Management trainees complete their study with
Taratahi Primary ITO, while working full time which is a
huge achievement.
One of the many ways that success is measured is
through our Education Performance Indicators (EPIs)
– measuring course and qualification completions.
Course and qualification completions. Student
Achievement Component Fund (SAC) of 88% and
68% respectively demonstrate our strong focus in
ensuring learners are supported to achieve positive
education achievement.
In line with government initiatives regarding foundation
education, Taratahi continued to work in some
areas of the country where training and education
opportunities are difficult to come by. These provided
challenges for our staff but their perseverance ensured
some fantastic results for our foundation level/youth
guarantee students, many of whom appreciated the
opportunities afforded them by Taratahi.
Another new initiative in 2014 was the launch of maraebased training in partnership with Papawai Marae and
Kuranui College whereby 12 students were engaged
in agricultural training through our Primary Industries
Trades Academy every week.
We started our first cohort of students in partnership with
the Southern Institute of Technology in Southland and
on the UNITEC campus in Auckland in the later stages of
2014. This came about due to the demand for quality
training both in the wider Auckland and Southland
regions. Our partnerships show impressive results and it
is a testament to the hard work of Panorama Equestrian
Centre that 100% of their equine students completed
their qualification. We look forward to continuing to
build our relationships with our partners in 2015 and
beyond.
2014 saw a continual flow of visitors to Taratahi ranging
in ages, cultures and professions. The highlight of our
year was the visit by Hon Prime Minister John Key who
gave students and staff the opportunity for a very
interactive question and answer session at the end of
the tour. Our classrooms have been well used by our
corporate clients for seminars and industry training.
School visits continue to prove popular and are
enjoyed by all staff. We greatly value the opportunity
to give the majority of children their first ever farm
experience.
Foreign delegations and embassy visits continue
to foster our links with other countries and we have
enjoyed hosting delegates and trainers from Myanmar,
China, India, Indonesia and Uruguay to name a few.
We also had our first Diploma in Dairy Management
students from India arrive on campus and start their
course with us.
- students in
scholarships that they awarded to 4 Maori
2014.
I would also like to acknowledge the ongoing input
from the communities in which we work. We really
appreciate their support, whether it be utilising farms,
mentoring students or giving their time to speak to
some of our international visitors, the communities
have been very much a part of what makes Taratahi
successful.
The last acknowledgement goes to the late Dr
Donovan Wearing, Taratahi’s CEO for the past seven
years. He was an inspiration to both the organisation
and the industry. His intellect and wit will be missed
by all who knew him and the industry will be a lesser
place without his presence.
Jan Tatham
Acting CEO
I would like to take this opportunity to thank those
organisations who provided our students with
scholarships throughout the year. Without your
support, some of our students would not have been
able to achieve their dreams. I wish to acknowledge
the ASB/Poutama Trust Scholarship for their inaugural
Taratahi Annnual Report 2014
9
Dr Donovan Wearing - A Tribute
economy. He was also responsible for the management
of the institute’s commercial farming activity including six
dairy farms (7500ha) producing approximately 1m kgms
per year and 50,000 stock units of sheep/beef and deer
farming. A total farming area of 7500ha.
He was visionary and courageous in his thinking
around what our students could achieve, what
our farms could achieve, what Maori agri-business
could achieve, what rural women could achieve.
His innovativeness encouraged the belief that the
impossible was possible.
The passing of Dr Donovan Wearing on the 21st of
January 2015 was a shock to all at Taratahi and the
tertiary education and agricultural sectors.
Donovan was a truly exceptional man. In his time as
Taratahi Chief Executive, his achievements were many
and varied. He grew Taratahi from being a relatively
small farming school in Wairarapa to a national college
of agriculture integral to the success of primary sector
vocational education.
A keen devotee of lifelong learning, Donovan’s first
degrees were a BA in Asian History and MA (Hons)
in History from the University of Canterbury. Later,
studying part-time, he obtained a MBA from Victoria
University of Wellington and received his Doctorate
of Business Administration (Southern Cross University,
Australia) for his research on “Inter-institutional
collaboration in the New Zealand tertiary education
sector”.
Donovan’s substantial experience in both strategic and
operational management were an tremendous asset to
Taratahi. Combined with his focus on the importance of
inter-organisational collaboration, he was instrumental in
the growth of primary sector vocational education and, as
a result, the creation of a force to help drive New Zealand’s
10
Taratahi Annnual Report 2014
It was Donovan’s learner-centric approach that made
Taratahi such a warm and nurturing environment for
students. He engaged readily with both staff and
students, encouraged us, motivated us, pushed us.
He urged us to reflect, adapt and progress so that we
could all be the best that we could be and shared in
celebrating our successes.
Donovan often spoke about the fact that Taratahi was
not about the lucky few, but the vital many. He truly
cared about the students and he often spoke of how
encouraged he was when Taratahi could help support
those individuals who may not have been given a
chance elsewhere. To see those students thrive was
something Donovan was immensely proud of.
The world of education will not be the same without
Donovan. He was passionate about the power of
learning, he shared his wisdom generously and was
always open to new ideas. He was an inspirational
leader, a mentor, a guiding hand, a true professional
in his field. His energy, quirky sense of humour,
compassion, integrity, boundless enthusiasm and
generosity of spirit will be missed by us all.
Kua hinga te totara i te wao nui a Tane.
The totara has fallen in the forest of Tane.
Reputable Student Success
The success of our graduates runs at the heart of
everything we do. Every year we are inundated with
stories of amazing graduates doing amazing things.
We make sure that we track our students while they are
studying with us around the country and equally we
follow our graduates as they move into their new jobs or
onto further study. By surveying both our graduates and
the farmers who offer them opportunities, we are able to
improve our systems to ensure we are doing the very best
we can for the industry. Student success to Taratahi means
more than just academic results. Our holistic approach
to learning encompasses how students interact socially,
attitudinally and how they engage with the communities
where they reside. This learner-centric model supports the
entire learner experience and is key to fostering confidence
and shaping the attitude of our students.
Confident in farming career
At only 18 years old, Paige Van Rompaey has already
made quite an impact in her chosen career. Awarded
the Taratahi Top Student prize at the 2014 graduation,
she also impressed the farm manager during the
work experience she completed while enrolled in
the National Certificate in Farming Skills (Work Ready)
(Level 3) programme and was offered a full time role.
Paige is one of many females that completed the Level
3 programme offered by EIT and delivered by Taratahi.
There was a 40:60 ratio of females to males in Paige’s
programme in Hawke’s Bay. The close bond all the
students share plays a part in why Paige has continued
onto further programmes. “We get a lot of support
and help from each other, plus it’s great being part of
a strong network of like-minded people all working
towards similar goals”.
“Now I’m out working on the farm full time, I know this
is definitely what I want to do with my future. The stockwork is a real highlight of my day. It’s so rewarding
when you get a clean muster! I’m currently rearing
some calves too which has been fun. An important
part of my job is learning the water systems. Being able
to fix troughs is so valuable in Hawke’s Bay where we
have such hot days. There are some challenges, like
having the physical strength for shearing, but with
more practice I will get there.”
Currently enrolled in the National Certificate in
Agriculture (Level 4) Paige spends most of her time
learning on the job. “We are on campus for one day a
fortnight and the rest of the time I am able to complete
the programme while working on the farm. Our tutor
comes out to the farm regularly. Having the help of the
tutors during the course of the programme has given
me confidence to know I am doing things correctly.”
Paige has always thought that working with animals
would be her ideal career, and in her final years at high
school realised that she could achieve this through
farming. “Once I made my mind up, I was keen to
get started as soon as possible. After assessing all the
agriculture qualifications available, I decided to enrol in
the Level 3 programme delivered by Taratahi”.
Paige is keen to work her way up the ladder into farm
management and eventually ownership. Working with
stock is where her passion lies, so it’s no surprise Paige
wants to try different types of farming as she works up
the ladder. “I would like to work on the steep stations
mustering on horseback, and even try dairy farming
one day too”.
Taratahi Annnual Report 2014
11
Pathways
As the Ministry of Education’s Vocational Pathways
programme becomes embedded in schools, more
students are becoming involved in Trades Academies.
In 2014, more than 200 students registered with the
Primary Industries Trades Academy (PITA) in 2014.
PITA is becoming very popular as schools, parents and
students see the benefits of the programme.
The delivery of the programme is flexible in nature and
offers rich real-life experiences to students so that they
experience environments they might be exposed to
if they chose to work in the primary industries. Being
able to tailor the learning to the individual, offering
additional learning to more able learners and being
available to provide more support to learners who need
it is invaluable. 32% of our PITA students identify as
Māori and are achieving at the same rate as nonMāori students.
Diploma Helps Connect
The Dots
“The diploma is the perfect in-between solution for
me. I’ve got the work experience and now can up-skill
through the diploma. It’s very manageable as it’s only
one year compared to the heavier commitment of a
degree. But, while I’m studying the diploma, I’m still
networking, learning a lot and not stuck in a classroom
all the time.”
Duncan Campbell is a student on a mission. At the
beginning of 2014 Duncan enrolled in the Massey
University Diploma in Agriculture to further his
farming career.
“I don’t want to be a yes-man, I want to get ahead and
further education is the fastest way I can improve myself
as a farmer.”
“I want to be able to understand why I’m being asked to
do something on-farm. I didn’t make the connections
before I started the diploma, and I didn’t see the big picture
which was frustrating. There are so many different layers to
farming and I want to make sure I understand them all and
am taking every opportunity I can.”
Duncan believes that the diploma is a great solution for
people who have worked on-farm and don’t want to
study at a degree level.
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Taratahi Annnual Report 2014
Students now have the opportunity to further their
studies from Level 2 through to Level 5 diploma study.
This enables a seamless transition for our students to
progress from a lower to a higher level of study.
The style of teaching of Taratahi tutors also resonates
well with Duncan. “I don’t have one favourite tutor, they
are all my favourites for different reasons and they all
bring something very different to the table. The classes
are not lectures, but more discussion groups which is so
valuable. They really encourage you to get involved.”
Duncan believes in planning and setting goals. “In five
years’ time I want to be Herd Manager of a large farm or
Farm Manager of a small farm.” In 10 years’ time Duncan
wants to be sharemilking. “I’m not fussed where, I’ll
move to wherever the opportunities are.”
Ire
lan
d
International Travel Beckons
At just 20 years of age, Manawatu student Hamuera
(Hamu) Treanor has landed the job of a lifetime in Ireland.
After helping his brother two years ago on a local
dairy farm, Hamu instantly knew this was the career
for him. It was a radio advert that prompted Hamu to
enrol in the National Certificate in Farm Skills (Work
Ready) (Level 3) to further his knowledge. “I knew
there were things that I needed to learn that I wasn’t
getting taught on the job, such as understanding how
water intake and outtake works.”
Hamu is described as an advanced student by
Manawatu tutor Barry Don. “Hamu is very diligent
and likeable with a great work ethic. This is why he
has done so well in the programme, but also why the
Ireland job opportunity was perfect for him. They love
us Kiwis with our ‘can do’ attitude over there. Hamu
will be highly sought after.”
The job came via an enquiry through the Taratahi
website from Irish dairy farmer David Deasy. David
was quite clear that he only wanted New Zealand
dairy farm workers due to how happy he has been
with New Zealand workers in the past.
Hamu hasn’t yet set a date for when he will return to
New Zealand “I am hoping to go for 10 years, longer if
I can. I will be taking every chance to climb the ladder
to set myself up to return to New Zealand to buy my
own dairy farm”.
Taratahi Annnual Report 2014
13
Reputable Farming Outcomes Guardianship (Kaitiakitanga) and Best Practice
Taratahi’s philosophy of ‘real training on real farms’ requires
access to a wide range of farm operations. Our farms are our
classrooms and provide access to scale which allows our
students to have a richer experience on our programmes.
Taratahi owns, leases or manages a range of different
farming businesses including sheep, beef, dairy and deer
properties. Every farm provides our students with the
opportunity to experience different farming systems, to
see model farms and also experience the difference that
best practice can make to a property that may have been
previously underperforming.
The advantage of students spending a significant amount of
time on-farm is that, over time, they are able to see the results
achieved (both positive and negative) due to their own
actions. This provides an essential learning experience.
The home dairy farm in Wairarapa uses DairyBase
which shows our physical KPIs are achieving above the
benchmark for the property class. The dairy farms that
Taratahi lease and manage are focussed on creating both
a positive student experience as well as creating value-add
for the owner.
Taratahi continues to work towards a percentage target
of in-calf results. This is part of a DairyNZ led initiative
which was started five years ago. All of our farms continue
to encourage best practice around animal welfare and
environmental behaviours.
Taratahi hosted Beef + Lamb New Zealand’s Land and
Environment Planning (LEP) workshops at Glenside
farm in Wairarapa (which is leased by Taratahi) Beef +
Lamb‘s LEP Toolkit helps farmers to understand land
and environmental issues on-farm and make a plan to
manage them. The Toolkit includes modules on topics
related to farm environmental issues, such as ways to
keep stock out of water, erosion, sediment management
and nutrient management. This helps farmers manage
their farm sustainably through addressing the
environmental factors that make their farms unique.
Industry Collaboration
We work closely with a range of organisations and industry bodies including Federated Farmers of New Zealand, Beef +
Lamb New Zealand, DairyNZ, Ministry for Primary Industries, the Primary Industry Capability Alliance, NZ Young Farmers,
Primary ITO, and Landcorp Farming. This collaboration encourages pan-industry thinking and means that a range of
initiatives are joint ventures.
Beef + Lamb New Zealand
Taratahi has a natural synergy with Beef + Lamb New Zealand. We
connect with this industry body as both farmers and educators.
Beef + Lamb’s People Programme includes promoting agricultural
careers in schools, training and leadership development for farmers and
their staff. Additionally, the organisation offers scholarships to support
agricultural students. Working together we aim to increase the number
of qualified and skilled workers in the industry.
Dairy NZ
In 2013, DairyNZ released their Strategy for Sustainable Dairy Farming
2013 – 2020 which has identified, as a key part to achieving their strategy,
the need for talented people in the dairy industry. Quality sub-degree
vocational agricultural education is front and centre in Taratahi’s thinking
and actions. It is the very reason we (our staff) get out of bed in the
morning and it drives our activity every day. We will continue to work to
support the achievement of this need.
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Taratahi Annnual Report 2014
Taratahi Wins at Beef & Lamb NZ Sheep Industry Awards
that AbacusBio have developed a relationship with
Taratahi implementing a number of on-farm research
projects. Taratahi’s scale and diversity of environments
makes them an obvious choice to partner with in
industry research projects.
On 6 August, Taratahi were welcomed on stage at the
Beef & Lamb New Zealand Sheep Industry Awards and
presented with the ‘Primary ITO Sheep Industry Trainer
of the Year’ award. This was the first year that Taratahi
was nominated, so to come away with the award was
fantastic. The other finalists were Smedley Station and
Cadet Training Farm and Waipaoa Station Training Trust.
Over 300 guests attended the prestigious awards night
in Napier, which showcased sheep farming excellence in
the industry.
Neville Jopson and Anna Campbell from AbacusBio
originally nominated Taratahi for the award. Neville said
Neville also recognised, since working with Taratahi,
that students are more than just a number. This has
been especially evident during the implementation
or management of trials. Every learning experience
is maximised, whether it is an explanation of the
importance of these projects, or hands-on trial.
Taratahi takes every opportunity to extend these
experiences to students, which are invaluable as students
gain exposure to the intricacies of experimental design,
management and procedures. This illustrates to students
the depth of the industry outside the farm gate and
how their involvement in these trials can help extend
the research knowledge gained as they become more
involved in the industry.
Healthy Competition Challenges Everyone to Succeed
For Taratahi’s students and staff, being pitted against the
best in the industry is an important way we stay forwardthinking and at the top of our game. Throughout 2014, we
had a range of opportunities to compete against both the
public and other education institutions.
Students competed in fencing competitions both at
Mystery Creek Field Days and at the Waipukurau A & P
Show, pitting their skills against both the public and other
education institutions. Both students and graduates also
competed in the Golden Shears, which sees the world’s
finest shearers descend on Masterton for three days
of intense competition. We also held our own internal
shearing and fencing competitions at the Wairarapa
campus, with the shearing competition against the staff
being a highlight for all involved!
The inaugural Wairarapa Shepherd of the Year competition
saw three Taratahi graduates compete amongst others
with 2010 Taratahi graduate, Jason Powell winning the
overall competition.
A number of Wairarapa students became involved in
the two local Young Farmers Clubs both of which have
Taratahi graduates as Chairmen at present. Both students
and graduates also entered the Young Farmer of the Year
district-level competition. Taratahi’s Wairarapa Dairy Farm
farm manager, Nigel King, competed for the first time in the
Dairy Industry Awards.
The opportunity to both participate and compete
allows Taratahi staff and students to continue to grow
and develop as individuals and often as a collective unit,
which fosters a healthy competitive spirit and challenges
everyone to strive to be the best they can be.
Hoof and Hook 2014
Every May, Taratahi students compete in the annual
Hoof & Hook competition with Hawke’s Bay, Taranaki
and Wairarapa campus students, taking home a raft of
prizes. These included first place in Lightweight Crossbred
Steer, Intermediate Novice Handler, Senior Novice
Handler, Grand Champion Handler, Crossbred Steer,
Champion Steer, Champion Heavy Weight Steer, and
Grand Champion Steer. Stacey Hill, a graduate from 2012,
also won the Senior Handler Prize and was the Overall
Champion Handler. What an amazing achievement for all!
Taratahi Annnual Report 2014
15
Industry Leadership
Taratahi has been asked to present at an array of
conferences and workshops throughout the year
in both the agricultural and education space. These
include presenting at the Ngati Kahungunu conference
in Dannevirke, the Baker & Associates winter seminar in
Masterton, the CorderiroBiz Agri conference in Brazil and
the Digital Rural Futures conference in Australia. We also
presented at the DairyNZ People Management Research
Forum and at the Mayoral Symposium in Hawke’s Bay,
which was based on successfully engaging with youth.
Taratahi is a member of the Primary Industries Capability
Alliance (PICA). The scope of PICA is to provide the power
of co-ordination across multiple like-minded parties
and the concentration of resources at a national level to
plan, implement, and evaluate capability development
required across the primary industries.
We continually compare ourselves against the best in
the business. This allows us to review our best practise
on-farm and in the classroom. By partnering with likeminded organisations, which are also passionate about
Cow Efficiency in Hill
Country Breeding Cow Herds,
Koromiko Farm and Tautane
The aim is to improve winter
and spring management
of cows on hills to reduce
environmental risk and
maintain profitability.
We are starting to gather information that allows
the prediction of the various indices that determine
efficiency of production from beef breeding cows. To
be really useful three entire production cycles will give
a data set that can be analysed statistically.
Students are gaining valuable experience with
additional cattle work, having to handle cows and
tag calves under sometimes challenging situations.
This July saw the purchase of a Harvest weather station.
To date most of the teething issues have been ironed
out with the remote sensor and up-to-date information
available via the Harvest website. In addition to yarding,
handling and observing, students are given the
opportunity to use the Allflex stick reader and operate
the XR3000 while condition scoring and weighing and
during tagging calves. This provides valuable experience
with technology, which is part of the programme and is
integral to the cattle industry.
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Taratahi Annnual Report 2014
the industry and want to provide positive leadership we
are able to increase our contribution to the sector. We are
involved in a range of research trials which expose our
students to more learning opportunities. These trials
include the following:
‹‹
‹‹
‹‹
‹‹
‹‹
‹‹
‹‹
‹‹
‹‹
‹‹
AbacusBio Ltd & Alliance Group Ltd:
Tail Docking Trial
Alliance Group Ltd & Callaghan Innovation: Ex
tended Lambing Trial
Massey University: Beef Cow Efficiency Trial
Beef + Lamb Genetics (BLG): Hill Central
Progeny Test
FarmIQ: Mangarata Scanning Analysis 2014
FarmIQ Project: Predicting Pasture Growth
FarmIQ & Chapel St Vet Centre: Effect of flexidine on iodine levels in ewes
AgResearch: Sheep Pneumonia Vaccine Trial
Beef + Lamb Genetics: Beef Cow Progeny Test
Ravensdown PGP: Variable rate
fertiliser application
FarmIQ, Mangarata Farm
Mangarata is one of
the FarmIQ Farms
showcasing new
technology and hosting field days for participating
farmers. Work to implement Electronic Identification
(EID) began on Mangarata before it joined the FarmIQ
programme. Taratahi is keen to progress tracking and
data collection across the herds and apply analysis to the
farm’s stock management programme.
The following outcomes are sought as a result of
FarmIQ data analysis:
‹‹ Prediction of pasture growth
‹‹ Management of single ewes at set stocking to advantage triplet ewe performance
‹‹ Plantain/clover mix to improve hogget and lamb weaning weights
At an IQ Farm meeting in April, the new direction and
budgetary changes that were going to be put in place
for the 2014-15 year were communicated.
As an IQ Farm, the main focus for Mangarata this season
is on using the Farm Management System (FMS).
Mangarata must meet obligations by collecting animal
and land data and accurately recording it in the FMS.
Successful Core
Business
2014 saw an external research agency conduct a range of
interviews with students (both past and present) as well
as various agricultural and education stakeholders, such as,
farmers and career advisors. This gave us an opportunity
to gain valuable insight into what we are doing well and
how we can improve. While the statistics allowed us to
break down a range of facts and figures, a number of the
comments resonated with the team including:
“It’s real-world experiences, it’s industry related. To my
employer it’s invaluable. My boss had never done farm
walks, now I do them all and interpret them. My boss
learns from me!” (Graduate).
“Students come out with solid skills, and are employable.
Some students are better than others but their basic
practical skills are good and it’s a solid foundation that
they have got” (Careers Advisor).
Scholarships Make Training Easier
Bella Kinza-Ward is a bright, young Taranaki woman
who has her sights firmly set on the dairy industry.
Bella has been training with Taratahi since 2013.
She has graduated from the National Certificate in
Agriculture (General Skills) Level 2 and is now well
underway with her training in the National Certificate
in Farming Skills (Work Ready) Level 3.
A friend of Bella’s was already enrolled with Taratahi
and planted the seed that perhaps agricultural training
was worth looking into. “I’d never even been on a farm
before and I wasn’t sure it was for me but I wanted to
give it a go and it turned out that I just loved it.”
Graduating from Level 2 was a special occasion.
“My family were really proud of me and I was proud of
myself. I had achieved something that I’d never done
before. It just made me want to go even further so I
enrolled in the Level 3 programme this year.”
In 2014 Bella was awarded the Taranaki Farm Training
Scholarship, J D Bashford/Royce Nicholls Scholarship
and the J E Prestige Trust scholarship. The scholarship
funds helped Bella with costs of training. “With the
scholarship funds I could buy things like good wet
weather gear and gumboots and also put some
money towards my fees. It has definitely helped and
I’m really grateful to scholarship providers.”
Bella’s sights do not end at the completion of Level 3.
“I’d like to keep going. My tutors think I’m up for Level
4 study, so I’ll look into that. One day I’d like to own my
own dairy farm.”
Taratahi Annnual Report 2014
17
Shepherd of the Year Competition Impressive
Taratahi sponsored the inaugural ‘Shepherd of the Year’
competition, which was held for the first time in 2014 as
part of the Wairarapa Farm Business of the Year awards.
the winner was announced at the end of a field day at
the Farm Business of the Year winner in the Wairarapa, in
which over 250 farmers attended.
The competition is designed to recognise the value of
young shepherds aged between 19 and 26-years-old
and aims to broaden the skill base at sub-management
level for people that will have an influence on the future
of sheep and beef farming in Wairarapa.
Three of the seven finalists were Taratahi graduates. The
inaugural Shepherd of the Year was awarded to Taratahi
graduate, Jason Powell.
The competition was judged on an initial written interview
in which contestants answered open-ended questions
about shepherding as a job, stock management and their
sub-management duties on the farm.
It was then narrowed down to a group of seven finalists
who hosted a farm tour while answering questions
about their role to the two judges. On Thursday 27 March
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Taratahi Annnual Report 2014
Jason has a clear vision of what his future looks like. His
main goal is to make a good name for himself and to buy
his own farm one day.
The judges were blown away by the calibre of the
entries. There was a lot of enthusiasm and energy and
the knowledge of the competitors was impressive.
The committee was very keen to have Taratahi involved due
to our longstanding commitment to agricultural training.
Māori
A skilled workforce is required to match the labour
needed to develop the approximate one million
hectares of underperforming or under-utilised Māori
land assets. A proactive approach is being taken by
Taratahi to train young Māori to be future leaders and
managers within the agricultural industry, both for
current industry needs and in anticipation of future
Treaty settlements. Māori make up 28% of all students
at Taratahi. We are building strong relationships with
hāpu and iwi to best support their rangatahi (young
people) as they undertake their path of learning with
Taratahi. Learning outcomes show that Māori find
success in our method of delivery – ‘real training on
real farms’.
Nā tō rourou, nā taku rourou ka ora ai te iwi
In June 2014, the second successful Kahungunu Agri
Business Conference was held in Dannevirke. The
purpose of the conference was to bring together
farmers, businesses, schools, training providers,
government agencies, and marae from throughout
Wairarapa and Hawke’s Bay. Everyone gathered to
discuss the status and opportunities in agriculture in
these regions.
Representatives from Taratahi presented a paper:
‘Nā tō rourou, nā taku rourou ka ora ai te iwi With your food basket and my food basket
the people will thrive.’
Taratahi has a very close collaborative relationship with
Ngati Kahungunu and Taratahi saw this opportunity to
contribute to the conference as a way of strengthening
this relationship.
Some Taratahi students also attended the conference,
which was a great opportunity to introduce them to
leaders in Māori agri-business and provide inspiration
for them to be Māori agri-business leaders of the future.
The event was supported by the Kahungunu Asset
Holding Company, Te Puni Kōkiri and the Ministry for
Primary Industries.
Partnerships and Collaboration
Taratahi has worked to build relationships with various
iwi to identify key milestones that would support
development within Māori-agribusiness. We have been
working to develop marae-based training programmes.
These commenced in 2014. Taratahi is working with the
leaders of different iwi to identify programme content to
support particular iwi needs. We are also working with
iwi leaders to identify suitable iwi members, especially
rangatahi and NEETs (Not in Employment, Education
or Training), for the programme. Relationships have
been formed with Ngāti Kahungunu, Waikato Tainui,
Ngāti Rangitane, Otakanini Topu, Ngāi Tai, Parininihi ki
Waitōtara, Ngāti Pikiao, Ngāti Manawa, Kokako Trust,
Te Rūananga o Kirikiriroa, Tu Tama Wahine, Pāpāwai Pa
Trust. Programmes are also offered at Te Aute College
in partnership with Te Kura and at Kuranui College
specifically for Māori learners.
Taratahi Annnual Report 2014
19
Taratahi Teams Up With Local Marae and School
In June 2014, Taratahi joined forces with Greytown’s
Papawai Marae and Kuranui College to provide a new
marae-based agricultural training programme. Taratahi
provided agricultural training to students from Kuranui
College on Papawai’s adjoining farmland, allowing
students to experience ‘real training on real farms’. The
programme is part of the Primary Industries Trades
Academy (PITA) training programme funded by the
Ministry of Education.
Taratahi named the programme ‘Ringa Raupā, Ringa
Ahuwhenua’ [‘Industrious Hands, Agricultural Hands’]
to emphasise the connection of Māori with the land
and the idea of using both hands and hard work to
create success. The programme included a mixture of
agricultural skills and Māori cultural components such
as whaikōrero [oratory], pepeha [links to the land] and
waiata [song] as unique points of difference.
Papawai representative, Paora Ammunson said the
development of the programme had been fast moving.
“Like all good ideas, you think to yourself, ‘Why didn’t we
do this ages ago?’ This programme will help Papawai
become an ‘active village’.
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Taratahi Annnual Report 2014
“We need young people on the marae kicking a football
around, learning new things, taking care of their whanau,
debating and questioning. This programme is doing all
of that. Congratulations, Taratahi, on your bravery. When
good people come together good things happen,” said
Paora.
Paora challenged the students as they started their
programme; he pointed out the many photos and
paintings of Papawai’s ancestors on the marae walls:
“Yes, you can be a milker or shearer, but we want you
to challenge yourselves, we want you boys to aim high,
as high as your ancestors did. We expect you to be our
future farm managers, rural lawyers and farm owners.”
Graduation day was a proud one for whanau and friends
alike. Taratahi tutor James Doyle said he had thoroughly
enjoyed the programme. “I’ve had an excellent year. With
the rest of the team, we’ve helped the boys find their roots
and who they are in the world. We’ve seen them grow so
much, they came to us as shy and lacking in confidence
and now they stand tall, can say their mihi in front of a
marae full of people, do an outstanding haka, have learnt
farming skills and have gained unit standards.”
International
Many of the world’s poorest people are farmers. Each
year, almost 1/3 of the world’s food is wasted. The
demand for protein is increasing and it is estimated that
the world will need to sustain an additional three billion
people by the end of the century. Taratahi is developing
programmes with the following adage in mind: ‘We can’t
feed the world, but we can help the world feed itself in a
sustainable fashion’.
Taratahi’s international education programmes come in
many shapes and forms, depending on the requirements
of international organisations.
Highlights during 2014 included the continuation of
the Fonterra Dairy Scholarship Programme which was
first piloted in 2013 with Indonesian farmers coming
to Taratahi to study for two weeks. We also had three
Japanese Scholarship students undertake an intensive
two-month dairy technician training programme.
In September, Taratahi signed a memorandum
of understanding with China Rural Technology
Development Centre based in Beijing. The MOU,
which was witnessed by Minister Michael Woodhouse,
focuses on improving the cooperation between New
Zealand and China in terms of agricultural policy
research, technology training and livestock breeding
and encourages cooperation and communication of
the governments, universities and corporations of both
countries, to improve global agricultural sustainable
development.
We also had a group from Myanmar complete study
programmes. Taratahi’s Sheep and Beef Tutor, Alistair
Lewis, was invited to the Solomon Islands, care of its
Ministry of Agriculture and Lands. The task was to “Train
the Trainers”. Each person was a trainer from a Rural
Training Centre (RTC) and each RTC was from a different
island within the immediate area. Alistair worked with
the trainers to provide essential skills in basic agricultural
production and also looked at opportunities for them to
grow more produce to sell at the local markets.
New Zealand Dairying – a New Direction For Japanese farmers
In July 2014, three Japanese dairy farmers undertook
an intensive two-month dairy technician training
programme funded by the New Zealand Government
under a ‘Kawase Scholarship’ .
“Japan has an agricultural university which is mostly
theory-based. We really need a place like Taratahi so
young people can learn the theory and get the practical
on-farm training as well.”
They planned to take New Zealand pasture-based
dairying techniques back to Hokkaido, adapt the
practices to local circumstances, and spread their newlyacquired expertise throughout the Hokkaido region.
The third scholarship recipient, Mr Mamoru Nagai, who
milks 400 cows, has been impressed with the availability
of discussion groups and organisations for farmers in
New Zealand.
Concerns as to the continued viability of Japanese
dairying have prompted Japanese interest in
collaboration with New Zealand, which benefits both
countries.
“When I get home I would like to adopt the New Zealandstyle discussion format within the Japanese farming
network so that we can talk more and help each other.”
One of the scholarship recipients, Mr Yuji Yoshikawa
stated that, “When dairy farming started in Hokkaido,
farmers grazed animals extensively on pasture, but now
less than 10 per cent of farms in the prefecture do so.”
“I want to see how my farm can move away from grainbased feed by taking this opportunity to learn about
pasture management, breeding and nutrition.”
In trials where farmers have switched back to grazing,
it has been discovered that this can result in reduced
working hours and increased milk yields.
The second scholarship recipient, Mr Masaki Nihei,
manages a 50-cow dairy farm. He praised New Zealand’s
hands-on approach.
Taratahi Annnual Report 2014
21
Success Through Collaboration
Partnerships remain a key part of our business ethos and we have already seen some of the rewards of living this
philosophy. Partnership activity with Polytechnics, Universities, iwi, other training providers and farm owners
collectively give strength and provide the scale needed to give more people access to quality programmes.
Taratahi is known to be a flexible and creative partner. Therefore partnerships occur in many different forms
in order to best suit the context, strengths of each partner and to achieve the best possible outcome.
We place the learner first and all work to make a positive difference to the industry.
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Taratahi Annnual Report 2014
Financial Statements
Contents
Statement of Accounting Policies
24 – 28
Statement of Comprehensive Income
29
Statement of Financial Position
30
Statement of Movements In Equity
31
Statement of Cashflow
32
Statement of Commitments and Contingencies
33
Notes to the Financial Statements
34 – 46
Independent Auditor’s Report
47 – 48
Taratahi Annnual Report 2014
23
Statement of Accounting Policies
For the year ended 31 December 2014
REPORTING ENTITY
Taratahi Agricultural Training Centre (Wairarapa) Trust
Board (Taratahi) is a public benefit entity established
in New Zealand. Recognised under the Taratahi
Agricultural Training Centre (Wairarapa) Act 1969;
the Trust was established in 1918. Taratahi’s principal
activity is Agricultural Education in New Zealand.
STATEMENT OF COMPLIANCE
The financial statements have been prepared
in accordance with NZ GAAP and with section
14 of the Taratahi Agricultural Training Centre
(Wairarapa) Act 1969. They comply with the New
Zealand equivalents to International Financial
Reporting Standards (NZ IFRS) and the other
applicable Financial Reporting Standards, as
appropriate for Public Benefit Entities.
The financial statements were authorised for issue
by the Taratahi Trust Board on 5 November 2015.
BASIS OF PREPARATION
The financial statements have been prepared on the
basis of historical cost, except for the revaluation of
certain non-current assets and financial instruments.
The functional currency of Taratahi is New Zealand
dollars. Cost is based on the fair value of the
consideration given in exchange for assets.
Accounting policies are selected and applied in a
manner which ensures that the resulting financial
information satisfies the concepts of relevance and
reliability, thereby ensuring that the substance of the
underlying transactions or other events is reported.
The accounting policies set out below have been
applied in preparing the financial statements for the
year ended 31 December 2014 and the comparative
information presented in these financial statements
for the year ended 31 December 2013.
STANDARDS, AMENDMENTS, AND
INTERPRETATIONS ISSUED THAT ARE
NOT YET EFFECTIVE AND HAVE NOT
BEEN EARLY ADOPTED
In May 2013, the External Reporting Board issued
a new suite of PBE accounting standards for
application by public sector entities for reporting
periods beginning on or after 1 July 2014. Taratahi
will apply these standards in preparing the 31
December 2015 financial statements.
24
Taratahi Annnual Report 2014
CRITICAL ACCOUNTING ESTIMATES
AND ASSUMPTIONS
The preparation of financial statements in
conformity with NZ IFRS requires the use of
certain critical accounting estimates. It also
requires Management to exercise judgement
in the process of applying the organisation’s
accounting policies. The area involving a higher
degree of judgement or complexity, or areas
where assumptions and estimates are significant
to the financial statements are disclosed in the
relevant accounting policy or in the relevant note.
The estimates and associated assumptions are
based on historical experience and various other
factors that are believed to be reasonable under
the circumstances. Actual results may differ from
these estimates.
The estimates and underlying assumptions are
reviewed on an on-going basis. Revisions to
accounting estimates are recognised in the period
in which the estimate is revised if the revision
affects only that period or in the period of the
revision and future periods if the revision affects
both current and future periods.
Note 3 provides information about the estimate
used in determining the value of milk revenue.
GOING CONCERN BASIS
The financial statements have been prepared on a
going concern basis, which assumes Taratahi will
be able to meet its debts as they fall due.
Taratahi has recognised Total Comprehensive
Income of $1,781,920 for the year ended 31
December 2014, and as at that date, current assets
exceed current liabilities by $255,671.
However, as described in note 24, Taratahi has
recognised a liability of $7.549 million plus GST
(i.e. $8.652 million) to the Tertiary Education
Commission (TEC) as a result of a recent review.
The repayment terms of this liability are yet to
be agreed. Note 24 sets out further detail on the
current position in agreeing repayment terms.
Based on all the information available, the Board is
satisfied that Taratahi is a going concern.
The Board has formed this view after considering
the following matters:
‹‹ An agreed 2016 Investment Plan with the TEC which in turn is supported by other agencies
(e.g. NZQA);
‹‹ Continued support of its bankers, Westpac
(further detail in note 24);
‹‹ Discussions and correspondence with the TEC on a repayment plan (further detail in note 24);
‹‹ Support from other stakeholders including the Ministry for Primary Industries;
‹‹ Positive equity;
‹‹ The latest forecast for the 2015 financial year;
‹‹ Financial forecasts for the next nine years
(2016 to 2024) and the validity of key
assumptions made in these forecasts; and
‹‹ The appointment of an Independent Advisor, PricewaterhouseCoopers, to assist the Board identify ways in which repayment can be made over a reasonable period of time without compromising the financial sustainability of Taratahi.
SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies used in the
preparation and presentation of the financial
statements are as follows:
(A) COMPARATIVES
When the presentation or classification of items is
changed, comparative amounts are reclassified unless
the reclassification is impracticable. In addition, a
statement of financial position is presented as at the
beginning of the earliest comparative period, when
the organisation has applied an accounting policy
retrospectively, makes a retrospective restatement of
items, or when it has reclassified items.
(B) REVENUE RECOGNITION
Sale of Goods
Revenue from the sale of goods is recognised when the
organisation has transferred to the buyer the significant
risks and rewards of ownership of the goods.
Rendering of Services
Revenue from a contract to provide services is
recognised by reference to the stage of completion of
the contract at the end of the reporting period. The
stage of completion is the proportion that contract
costs incurred for work performed to date bear to the
estimated total contract costs.
Student Tuition Fees
Revenue from student tuition fees is recognised
as revenue on a course percentage of completion
basis. The percentage of completion is measured by
reference to the days of the course completed as a
proportion of the total course days.
Funding from the Tertiary Education Commission
is recognised as revenue upon entitlement.
Dividend and Interest Revenue
Dividend revenue from investments is recognised
in the financial period in which the right to
receive payment is established. Interest revenue is
recognised on a time proportionate basis that takes
into account the effective yield on the financial asset.
Borrowing Costs
Taratahi has elected to defer the adoption of the
revised NZ IAS 23 Borrowing Costs (revised 2007)
in accordance with the transitional provisions of
NZ IAS 23 that are applicable to public benefit
entities. Therefore, all borrowing costs are
recognised as an expense in the financial year in
which they are incurred.
(C) FINANCIAL ASSETS
Financial assets are initially recognised at fair value
plus transaction costs unless they are carried at
fair value through surplus or deficit in which case
the transaction costs are recognised in the surplus
or deficit. Financial assets are classified into the
following specified categories: financial assets ‘at
fair value through surplus or deficit’, ‘Fair value
through other comprehensive income’, and ‘loans
and receivables’. The classification depends on
the nature and purpose of the financial assets and
is determined at the time of initial recognition.
Impairment of Financial Assets
At each balance date, Taratahi assesses whether there
is any objective evidence that a financial asset or
group of financial assets is impaired. Any impairment
losses are recognised in surplus or deficit.
Loans and receivables (including cash and cash
equivalents and debtors and other receivables)
Impairment of a loan or a receivable is established
when there is objective evidence that Taratahi will
not be able to collect amounts due according to
the original terms of the debt. Significant financial
difficulties of the debtor, probability that the
debtor will enter into bankruptcy, and default in
payments are considered indicators that the asset
is impaired. The amount of the impairment is the
difference between the asset’s carrying amount and
the present value of estimated future cash flows,
discounted using the original effective interest rate.
For debtors and other receivables, the carrying
amount of the asset is reduced through the use
of an allowance account, and the amount of the
Taratahi Annnual Report 2014
25
loss is recognised in the surplus or deficit. When the
receivable is uncollectible, it is written-off against the
allowance account. Overdue receivables that have been
renegotiated are reclassified as current (that is, not past
due). For other financial assets, impairment losses are
recognised directly against the instruments carrying
amount.
Financial assets at fair value through other comprehensive
income
For equity investments, a significant or prolonged decline
in the fair value of the investment below its cost is
considered objective evidence of impairment. For debt
investments, significant financial difficulties of the debtor,
probability that the debtor will enter into bankruptcy,
and default in payments are considered objective
indicators that the asset is impaired. If impairment
evidence exists for investments at fair value through other
comprehensive income, the cumulative loss (measured
as the difference between the acquisition cost and
the current fair value, less any impairment loss on that
financial asset previously recognised in the surplus or
deficit) recognised in other comprehensive income is
reclassified from equity to the surplus or deficit.
Equity instrument impairment losses recognised in the
surplus or deficit are not reversed through the surplus
or deficit. If in a subsequent period the fair value of
a debt instrument increases and the increase can be
objectively related to an event occurring after the
impairment loss was recognised, the impairment loss is
reversed in the surplus or deficit
Assets Carried at Fair Value
Financial assets at fair value through surplus or deficit are
not assessed for impairment as their fair value reflects the
credit quality of the instrument and changes in the fair
value are recognised in surplus or deficit.
(D) TRADE AND OTHER PAYABLES
Trade payables and other accounts payable are
non-interest bearing and are generally settled on
30-day terms recognised when the organisation
becomes obliged to make future payments resulting
from the purchase of goods and services. Therefore
the carrying value of trade and other payables
approximates their fair value.
(E) TRADE AND OTHER RECEIVABLES
Debtors and other receivables are initially measured
at fair value and subsequently measured at
amortised cost using the effective interest rate
method, less any provision for impairment.
26
Taratahi Annnual Report 2014
(F) INVENTORIES
Inventories are valued at the lower of cost,
determined on a first in first out basis, and net
realisable value. Inventory comprises feedstock,
cereal crops, wool, breeder seed, farm sundry
consumables and property and plant maintenance
consumables. The cost of harvested agricultural
produce is measured at fair value less estimated
point-of-sale costs at the point of harvest.
(G) PROPERTY, PLANT AND EQUIPMENT
The Organisation has the following classes of
property, plant and equipment:
‹‹ Land and land improvements
‹‹ Buildings (included services and fitout)
‹‹ Plant
‹‹ Irrigation
‹‹ Vehicles
‹‹ Office equipment and furniture
Land and buildings are measured at fair value. Fair
value is determined on the basis of an independent
valuation prepared by external valuation experts
less any subsequent accumulated depreciation and
subsequent accumulated impairment losses. Land
and buildings are revalued at least every three years
or whenever there has been a significant movement
in their value.
The carrying value of re-valued assets are reviewed
at the end of each reporting period to ensure that
the carrying value of land and buildings is not
materially different from their fair values.
Any revaluation increase arising on the revaluation
of land and buildings is recognised in other
comprehensive income and accumulated in the
asset revaluation reverse, except to the extent that
it reverses a revaluation decrease for the same asset
previously recognised as an expense in surplus
or deficit, in which case the increase is credited
to surplus or deficit to the extent of the decrease
previously changed. A decrease in carrying amount
on the revaluation of land and building is charged
as an expense in surplus or deficit to the extent
that it exceeds the balance, if any, held in the asset
revaluation reserve relating to a previous revaluation
of that asset.
Depreciation on revalued buildings is charged
to surplus or deficit. On the subsequent sale or
retirement of a revalued property, the attributable
revaluation surplus remaining in the asset revaluation
reserve, is transferred directly to retained earnings.
All other assets are recorded at cost less accumulated
depreciation and accumulated impairment.
Capital work in progress is recorded at cost.
Depreciation is provided for on a straight line basis
on all tangible property, plant and equipment, other
than freehold land and capital work in progress, at
depreciation rates calculated to allocate the assets’ cost
or other revalued amount over their estimated useful
lives. Leasehold Improvements are depreciated over the
period of the lease or estimated useful life, whichever
is the shorter, using the straight line method. The
estimated useful lives, residual values and depreciation
method are reviewed at the end of each annual
reporting period.
Depreciation rates were reviewed and amended during
the year. The following estimated useful lives are used
in the calculation of depreciation:
Category
Buildings - Structure
Buildings –Services
Buildings – Fit-out
Fencing
Plant and Farm Equipment
Classroom Equipment
Workshop Equipment
Furniture
Water Supply
Irrigation
Vehicles – Off Road
Vehicles – On Road
Office Equipment/Photocopiers
Computers/ IT Equipment
Video Equipment
Depreciation
Rate
2%
3%
6%
7%
12.5%
17.5%
10%
12.5%
10.5%
10%
15%
15%
25%
25%
35%
(H) BIOLOGICAL ASSETS
Livestock
Taratahi values its Livestock at their fair value less
estimated point of sale costs by reference to the
most relevant active market. Changes in the
valuation of livestock are recognised in surplus or
deficit for the period.
Livestock sales, and sales of other agricultural
produce, are recognised upon receipt by the
customer when the risks and rewards of ownership
have been transferred.
Livestock is classified as a current asset if it is likely to
be sold within one year.
Agricultural Produce
Agricultural produce, including milk, deer velvet
and wool, is recognised at the point of harvest at
its fair value less estimated point-of-sale costs.
(I) LEASED ASSETS
Leases are classified as finance leases whenever the
terms of the lease transfer substantially all the risks
and rewards of ownership to the lessee. All other
leases are classified as operating leases.
Assets held under finance leases are initially
recognised at their fair value or, if lower, at amounts
equal to the present value of the minimum lease
payments, each determined at the inception of the
lease. The corresponding liability to the lessor is
included in the Statement of Financial Position as a
finance lease obligation.
Lease payments are apportioned between finance
charges and reduction of the lease obligation so
as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges
are charged directly against income.
Finance leased assets are amortised on a straight
line basis over the estimated useful life of the asset
or the lease term, whichever is the shorter.
Operating lease payments are included in surplus
or deficit in equal instalments over the lease term.
(J) INTANGIBLE ASSETS
Computer Software
Acquired computer software licenses are
capitalised on the basis of the costs incurred to
acquire and bring to use the specific software.
These costs are amortised over their estimated
useful lives (between 3 and 5 years on a straight
line basis). Costs associated with maintaining
computer software programmes are recognised
as an expenses as incurred.
Computer software development costs that
are directly associated with the production
of identifiable and unique software products
controlled by the organisation, and that will
probably generate economic benefits exceeding
costs beyond one year, are recognised as
intangible assets. Direct costs include the
software development employee costs and an
appropriate portion of relevant overheads.
Computer software development costs
recognised as assets are amortised over their
estimated useful lives (not exceeding 5 years).
Disposal of Intangible Assets
Realised gains and losses arising from disposal of
intangible assets are recognised in surplus or deficit
in the period in which the transaction occurs.
Taratahi Annnual Report 2014
27
(K) IMPAIRMENT OF ASSETS
At each reporting date, the organisation reviews
the carrying amounts of its tangible and
intangible assets that are subject to amortisation
or depreciation to determine whether there is
any indication that those assets have suffered an
impairment loss. If any such indication exists, the
recoverable amount of the assets is estimated in
order to determine the extent of the impairment
loss (if any). Where the asset does not generate cash
flows that are independent from other assets, the
Organisation estimates the recoverable amount of
the cash-generating unit to which the asset belongs.
(L) PROVISIONS
Provisions are recognised when the organisation
has a present legal or constructive obligation as a
result of past events, it is more likely than not that
an outflow of resource will be required to settle
the obligation and the amount has been reliable
estimated. Provisions are not recognised for
future operating losses.
All provisions are recorded at the best estimate of
the expenditure required to settle the obligation
at balance date. Where the effect is material, the
expected expenditures are discounted to their
present value using discount rates.
When some or all of the economic benefits
required to settle a provision are expected to be
recovered from a third party, the receivable is
recognised as an asset if it is virtually certain that
reimbursement will be received and the amount
of the receivable can be measured reliably.
(M) BORROWINGS
Borrowings are recorded at fair value, net of
transaction costs.
Subsequent to initial recognition, borrowings are
measured at amortised cost with any difference
between the initial recognised amount and the
redemption value being recognised in surplus or
deficit over the period of the borrowing using the
effective interest rate method.
Borrowings are classified as current liabilities unless
the organisation has an unconditional right to defer
settlement of the liability for at least 12 months after
balance date or if the borrowings are expected to be
settled within 12 months of balance date.
(N) EMPLOYEE BENEFITS
Provision is made for benefits accruing to
employees in respect of wages and salaries,
annual leave, long service and sick leave where it
is probable that settlement will be made and they
are capable of being measured reliably.
28
Taratahi Annnual Report 2014
Superannuation schemes
Employer contributions to Kiwisaver are
accounted for as a defined contribution scheme
and are recognised as an expense in the surplus
or deficit as incurred.
(O) GOODS AND SERVICES TAX
The financial statements are prepared on a GST
exclusive basis with the exception of receivables
and payables which include GST. Where GST is
not recoverable as input tax then it is recognised
as part of the related asset or expense.
The net amount of GST recoverable from, or
payable to, the Inland Revenue Department (IRD)
is included as part of receivables or payables in
the statement of financial position.
The net GST paid to, or received from the IRD,
including the GST relating to investing and
financing activities, is classified as a net operating
cash flow in the statement of cash flows.
Commitments and contingencies are disclosed
exclusive of GST.
(P) STATEMENT OF CASH FLOWS
Cash flows are included in the Statement of Cash
Flows on a gross basis. The GST component of
cash flows arising from investing activities which
is recoverable from, or payable to, the taxation
authority is classified as operating cash flows.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand,
cash in banks, demand deposits and other highly
liquid investments readily convertible into cash.
Bank overdrafts are shown as current liabilities in
the Statement of Financial Position.
Operating Activities
Operating activities include all transactions and other
events that are not investing or financing activities.
Investing Activities
Investing activities are those activities relating to the
acquisition and disposal of current and non-current
investments and any other non-current assets.
Financing Activities
Financing activities are those activities relating to
changes in the equity and debt structure of the
Organisation.
CHANGES IN ACCOUNTING POLICIES
There have been no changes in accounting policies
for the year ended 31 December 2014.
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2014
Note
2014
2013
$
$
Revenue
Educational
1
12,452,519
11,199,664
Livestock
2
5,288,468
3,828,643
Milk
3
2,773,096
2,651,913
689,802
528,100
Other agricultural produce
70,013
51,808
Dividends
33,296
140,273
Donations
10,695
11,345
639,787
444,581
21,957,676
18,856,327
Wool
Other income
Total Revenue
Expenditure
Farm working expenses
4
4,428,187
3,795,411
Administration and services
5
485,108
619,660
Personnel costs
6
9,229,342
8,041,287
Depreciation
7
1,415,434
1,318,670
Amortisation
8
7,233
7,454
Other expenses
9
6,047,229
4,928,648
21,612,533
18,711,130
Interest expense
635,093
532,926
Interest income
(29,963)
(1,365)
605,130
531,561
(119,343)
(63,731)
(155,252)
420,935
Total Other Gains/(Losses)
(274,595)
357,204
Surplus
(534,582)
(29,160)
72,881
(372,380)
2,243,622
-
1,781,920
(401,540)
Total Expenditure
Net Finance Costs
Total Net Finance Costs
Other Gains/(Losses)
Gain/(loss) on sale of plant, property and equipment
Change in fair value of livestock
10
Other Comprehensive Income
Gain/(loss) on share revaluation
Gain/(loss) on revaluation of properties
Total Comprehensive Income
7
The Statement of Accounting Policies and the accompanying notes form an integral part of these Financial Statements.
29
STATEMENT OF FINANCIAL POSITION
As at 31 December 2014
Notes
2014
2013
$
$
Public Equity
General funds
11
7,900,096
8,434,678
Fair value through comprehensive income reserve
11
459,182
386,301
9,382,553
7,138,931
17,741,830
15,959,910
1,090,960
966,269
1,825,801
1,668,858
Accrued revenue
492,996
503,811
Prepayments
165,130
163,948
1,560,378
1,140,314
11,566
18,027
5,146,831
4,461,227
Asset revaluation reserves
Total Public Equity
Represented by;
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Biological assets - livestock
12
10
Inventories
Total Current Assets
Non-Current Assets
Plant, property and equipment
7
24,000,499
22,329,239
Biological assets – livestock
10
8,541,614
8,527,922
Financial assets
13
2,023,503
1,887,439
Intangible assets
8
26,024
33,257
Total Non-Current Assets
34,591,640
32,777,857
Total Assets
39,738,471
37,239,084
Liabilities
Current Liabilities
Trade and other payables
14
1,446,073
1,141,168
Revenue received in advance
15
371,667
372,845
Employee entitlements
16
642,124
549,298
TEC Repayment
24
2,425,006
-
Borrowings
17
6,291
11,277
4,891,160
2,074,588
Total Current Liabilities
Non-Current Liabilities
30
Bailed stock
10
77,940
100,832
TEC Repayment
24
6,226,986
7,263,471
Borrowings
17
10,800,554
11,840,283
Total Non-Current Liabilities
17,105,480
19,204,586
Total Liabilities
21,996,640
21,279,174
Net Assets
17,741,830
15,959,910
The Statement of Accounting Policies and the accompanying notes form an integral part of these Financial Statements.
STATEMENT OF MOVEMENTS IN EQUITY
As at 31 December 2014
General
Funds
Fair value through
comprehensive
income reserve
Asset
Revaluation
Reserve
Total
13,294,217
758,681
7,138,931
21,191,829
(4,830,379)
-
-
(4,830,379)
8,463,838
758,681
7,138,931
16,361,450
(29,160)
(372,380)
-
(401,540)
8,434,678
386,301
7,138,913
15,959,910
(534,582)
72,881
2,243,622
1,781,920
7,900,096
459,182
9,382,553
17,741,830
Note
Balance at 1 January 2013, as
originally reported
Recognition of repayment to the
Tertiary Education Commission
24/25
Balance at 1 January 2013,
as restated
Comprehensive income for the 2013
year (restated)
25
Balance at 31 December 2013
Comprehensive Income for the
2014 year
Balance at 31 December 2014
11
The Statement of Accounting Policies and the accompanying notes form an integral part of these Financial Statements.
31
STATEMENT OF CASHFLOW
For the year ended 31 December 2014
2014
2013
$
$
13,611,838
13,051,188
9,174,556
6,010,475
(58,164)
131,774
Interest received
29,963
1,365
Dividends received
31,230
92,660
Donations
10,695
11,345
22,800,119
19,298,807
19,777,727
16,969,668
635,093
532,926
20,412,820
17,502,594
2,387,299
1,796,213
254,963
3,227,141
2,132,336
(1,430,928)
49,400
44,333
49,400
44,333
1,004,154
1,811,284
8,176
5,000
-
21,765
1,012,330
1,838,049
(962,930)
(1,793,716)
-
4,800,000
-
4,800,000
-
-
1,044,715
46,553
1,044,715
46,553
(1,044,715)
4,753,447
Note
Cash Flows from Operating Activities
Cash was provided from:
Education revenue
Farm revenue
Goods and Services Tax (net)
Cash was applied to:
Payments to employees and suppliers
Interest on term liabilities
Net Cash Flows from Operating Activities (excluding
purchases of capital livestock)
Cash was applied to:
Purchases of capital livestock
Net Cash Flows from Operating Activities
18
Cash Flow from Investing Activities
Cash was provided from:
Sales of assets
Cash was applied to:
Purchase of fixed assets
Purchase of shares
Purchase of intangible assets
Net Cash Flows from Investing Activities
Cash Flow from Financing Activities
Cash was provided from:
Term loans
Cash was applied to:
Bank overdraft
Repayment of term liabilities
Net Cash Flow from Financing Activities
Net increase/(decrease) in cash held
Opening cash and cash equivalents
Closing Cash and Cash Equivalents
32
124,691
1,528,803
966,269
(562,534)
1,090,960
966,269
Cash and cash equivalents are held with Westpac New Zealand Limited which currently has a Standard and Poors credit rating of AA-.
The GST (net) component of operating activities reflects the net GST paid to and received from the Inland Revenue Department. The GST (net) component
has been presented on a net basis as the gross amount do not provide meaningful information for financial statement purposes and to be consistent with the
presentation basis of the other primary financial statements.
Taratahi Annnual Report 2014
STATEMENT OF COMMITMENTS AND CONTINGENCIES
As at 31 December 2014
Operating Commitments
Taratahi has leased various properties and items of equipment. The total future commitments under these
operating leases are:
2014
2013
Total payable
6,170,883
7,244,411
Not later than one year
1,129,303
1,206,039
One to two years
899,678
1,090,239
Two to five years
2,022,368
2,208,510
2,119,533
2,739,624
Property
Later than five years
Taratahi property leases relate to agricultural farms and office premises. Some operating lease contracts
contain rent review clauses at the option of either party. During the year ended 31 December 2014
$1,252,557 was recognised as an expense in the Statement of Comprehensive Income in respect of operating
leases (2013: $982,997).
Capital Commitments
Taratahi has entered into contracts for various capital expenditure projects. The total future commitments
under these contracts are:
2014
2013
Total payable
16,660
272,763
Not later than one year
16,660
272,763
Capital Commitments
Contingent Assets and Liabilities
As at 31 December 2014, Taratahi has no contingent liabilities (2013: Nil).
As at 31 December 2014, Taratahi has no contingent assets (2013: Nil)
Taratahi Annnual Report 2014
33
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 December 2014
Note 1 - Educational Revenue
2014
2013
Tertiary Educational Commission (TEC)
7,309,982
6,454,869
Partnerships
2,807,427
2,681,489
Student course fees
785,816
781,359
Student accommodation
772,074
736,408
Other
777,220
545,539
12,452,519
11,199,664
Total Educational Revenue
Note 2 - Livestock Revenue
Taratahi’s livestock consists of sheep, beef cattle, dairy cattle and deer by species is as follows:
2014
2013
Sheep
3,983,946
2,955,949
Beef
1,125,122
626,988
Dairy cattle
91,691
191,096
Deer
87,709
54,610
5,288,468
3,828,643
Livestock sales
4,931,530
2,957,694
Net increases due to growth, births and deaths
4,681,722
4,039,536
Book value of livestock sold
(4,324,784)
(3,168,587)
Total Livestock Revenue
5,288,468
3,828,643
2014
2013
Produced
1,912,659
1,844,826
Contract
860,437
807,087
2,773,096
2,651,913
Total Livestock Revenue
Note 3 – Milk Revenue
Milk income during the year was:
Total Milk Revenue
Taratahi recognises the total value of milk revenue in the period of production, based on the Fonterra forecast
(milk price component) payment at the date the Financial Statements are adopted by the Board.
34
Taratahi Annnual Report 2014
Note 4 - Farm Working Expenses
2014
2013
336,424
286,196
8,362
8,362
Breeding and testing
105,742
78,370
Cropping and feed
579,098
680,834
Electricity
287,507
247,400
37,971
33,958
1,397,333
1,125,109
Irrigation
82,995
77,915
Livestock levies and freight
11,947
19,087
Insurance
192,088
154,267
Pasture maintenance
954,158
748,955
Shearing
322,087
251,768
Other farm
112,475
83,190
4,428,187
3,795,411
2014
2013
Audit fees for financial statement audit
39,150
38,000
Bad debts written off
11,513
1,032
Provision for doubtful debts
16,790
37,375
4,475
4,242
Board remuneration
69,470
74,833
Board expenses
12,308
39,861
Legal fees
37,645
25,617
240,483
385,123
53,274
13,577
485,108
619,660
2014
2013
8,656,475
7,498,657
Kiwi saver contributions
216,349
164,419
Staff training and recruitment
183,496
176,780
Other personnel
173,022
201,431
9,229,342
8,041,287
Animal health
Bailment
Farm consultancy
Farm lease
Note 5 – Administration and Services
Bank fees
Business consultancy
Subscriptions
Note 6 - Personnel Costs
Staff remuneration
Taratahi Annnual Report 2014
35
1,257,470
1,132,191
4,948,865
Plant
Irrigation
Vehicles
1,199,675
1,132,191
3,785,268
Plant
Irrigation
Vehicles
24,936,734
22,329,239
326,566
2,943,454
715,233
672,155
8,254,119
9,417,712
3,050,780
395,191
1,489,941
304,389
542,157
270,028
49,074
21,885,954
409,721
2,295,327
827,802
657,518
8,290,897
9,404,689
Opening
Opening
Accumulated Carrying Amount
Depreciation
and Impairment
Charges
3,857,035
279,767
2,005,411
416,958
585,315
483,833
85,751
Opening
Opening
Accumulated Carrying Amount
Depreciation
and Impairment
Charges
1,870,019
132,771
1,345,263
165,258
177,027
49,700
Additions
1,011,815
106,754
711,485
5,110
105,775
58,281
24,410
Additions
108,064
46,119
48,564
13,381
-
-
Disposals*
168,743
12,085
50,789
-
6,085
99,783
-
Disposals*
1,318,670
169,807
648,572
112,569
137,240
213,805
36,677
Depreciation
Charge
1,415,434
140,305
764,927
112,697
142,726
216,608
38,171
Depreciation
Charge
-
-
-
-
-
-
-
Impairment
Charge
-
-
-
-
-
-
-
Impairment
Charge
-
-
-
-
-
-
-
Revaluation
Increase/
(decrease)
2,243,622
-
-
-
-
396,993
1,846,629
Revaluation
Increase/
(decrease)
26,186,274
606,333
4,948,865
1,132,191
1,257,470
8,737,952
9,503,463
Closing Cost/
Valuation
28,359,570
656,606
5,512,431
1,137,300
1,301,174
8,393,000
11,359,059
Closing Cost/
Valuation
3,857,035
279,767
2,005,411
416,958
585,315
483,833
85,751
Closing
Accumulated
Depreciation
and Impairment
Charges
4,359,071
375,674
2,665,534
529,655
679,727
-
108,481
Closing
Accumulated
Depreciation
and Impairment
Charges
22,329,239
326,566
2,943,454
715,233
672,155
8,254,119
9,417,712
Closing
Carrying
Amount
24,000,499
280,932
2,846,897
607,645
621,447
8,393,000
11,250,578
Closing
Carrying
Amount
*Disposals are reported net of accumulated depreciation
The most recent valuations of land, land improvements and buildings (excluding those assets on leased properties) were performed by an independent registered valuer, P Guscott ANZIV of
Wairarapa Property Consultants Limited, by reference to market evidence. The valuation is effective as at 31 December 2014.
Asset Total
804,912
8,560,925
Buildings (including
services and fit-out)
Office Equipment
and Furniture
9,453,763
Opening Cost/
Valuation
26,186,274
Land and land
improvements
2013
Asset Total
606,333
8,737,952
Buildings (including
services and fit-out)
Office equipment
and furniture
9,503,463
Opening Cost/
Valuation
Land and land
improvements
2014
Note 7 – Plant, Property and Equipment
36
Note 8 - Intangible Assets
Movements for each class of intangible assets are as follows:
2014
2013
44,129
22,364
Additions
-
21,765
Disposals
-
-
44,129
44,129
10,872
3,418
7,233
7,454
Impairment losses
-
-
Disposals
-
-
18,105
10,872
26,024
33,257
2014
2013
1,926,131
1,447,764
Catering
238,926
249,369
Copier lease
163,155
102,574
Information technology
265,560
118,864
Marketing
593,638
426,277
Office
172,585
113,500
Phone
110,701
122,865
Repairs and maintenance
458,888
328,897
Travel and accommodation
233,384
211,576
Vehicles
847,978
764,882
1,036,283
1,042,080
6,047,229
4,928,648
Software
Cost
Balance at 1 January
Balance at 31 December
Accumulated Amortisation and Impairment Losses
Balance at 1 January
Amortisation expense
Balance at 31 December
Carrying Amounts
Balance at 31 December
Note 9 - Other Operating Expenses
Educational Contractors
Other operating
Taratahi Annnual Report 2014
37
Note 10 - Biological Assets
Taratahi’s livestock consists of sheep, beef cattle, dairy cattle and deer by species is as follows:
2014
2013
Sheep
6,198,525
5,795,678
Beef
2,333,159
1,928,506
Dairy cattle
1,453,753
1,807,233
38,616
35,987
10,024,053
9,567,404
77,940
100,832
10,101,992
9,668,236
9,567,404
5,048,379
254,963
3,227,141
(4,324,784)
(3,168,587)
Net increases due to growth, births and deaths
4,681,722
4,039,536
Changes in fair value less estimated point of sale cost
(155,252)
420,935
10,024,053
9,567,404
Total current portion
1,560,378
1,140,314
Total non-current portion
8,541,614
8,527,922
Total Value of Livestock
10,101,992
9,668,236
Livestock
Deer
Total Value of Livestock (excluding bailed stock)
Bailed deer
Total Value of Livestock
Balance at beginning of the year
Increases due to acquisitions
Book value of livestock sold
Balance at the end of the year (excluding bailed stock)
Livestock is classified as a current asset if it is likely to be sold within one year.
Livestock Valuation Method
Livestock was valued by PGG Wrightson Limited and Elders Livestock Limited by reference to market evidence
of recent transactions for similar livestock.
Taratahi values its Livestock at fair value less estimated point of sale costs by reference to the most relevant
active market. Changes in the valuation of livestock are recognised in surplus or deficit for the period.
38
Taratahi Annnual Report 2014
Note 11 - Equity
2014
2013
8,434,678
13,294,217
-
(4,830,379)
Balance at 1 January, as restated
8,434,678
8,463,838
Surplus/(deficit) for the year
(534,582)
(29,160)
Balance at 31 December
7,900,096
8,434,678
386,301
758,681
Gain/(loss) on revaluation of shares
72,881
(372,380)
Balance at 31 December
459,182
386,301
Balance at 1 January
7,138,931
7,138,931
Gain/(loss) on land and building revaluations
2,243,622
-
Balance at 31 December
9,382,553
7,138,931
17,741,830
15,959,910
2014
2013
1,232,490
1,110,236
(69,116)
(52,325)
1,163,374
1,057,911
652,327
596,871
10,100
14,076
1,825,801
1,668,858
Gross
Impairment
Net
Not past due
1,017,791
-
1,017,791
Past due 1-30
86,343
-
86,343
Past due 31-60
29,931
-
29,931
Past due > 90 days
98,424
(69,116)
29,308
1,232,490
(69,116)
1,163,374
General Funds
Balance at 1 January, as originally reported
Recognition of Repayment to the Tertiary Education Commission for
prior years
Fair value through comprehensive income reserve
Balance at 1 January
Property revaluation reserves
Total Equity
Note 12 - Trade and Other Receivables
Trade receivables
Less provision for doubtful debts
Net Trade Debtors
Other Receivables
GST receivable
Other receivables
Impairment
The ageing profile of receivables at year end is detailed below:
2014
60 days+
Taratahi Annnual Report 2014
39
Movements in the provision for impairment of receivables are as follows:
2014
2013
Balance at 1 January
52,325
14,336
Additional provisions made
28,305
38,406
Receivables written off (net)
(11,513)
(417)
69,116
52,325
Balance at 31 December
Note 13 – Financial Assets
Taratahi’s share holdings are as follows:
2014
2013
Qty
$
Qty
$
7,198
7,198
5,132
5,132
Ravensdown Fertiliser Co-operative Ltd
81,894
81,894
81,894
81,894
Wool Equities Ltd
11,204
224
11,204
974
Livestock Improvement -Co-op shares
1,629
1,629
1,369
1,369
Livestock Improvement - Investment Shares
3,870
23,607
3,870
27,090
283,925
1,712,068
283,925
1,643,926
Silver Fern Farms
1,651
693
165
165
Wools of New Zealand
5,000
5,000
5,000
5,000
Alliance Group Limited
24,257
24,257
16,341
16,341
Ballance Agri-Nutrients
20,609
166,933
14,073
105,548
Farmlands Trading Society Ltd
Fonterra Co-operative Shares
Total Financial Assets
2,023,503
1,887,439
Note 14 - Trade and Other Payables
2014
2013
Trade payables
816,904
612,033
Accrued expenses
413,716
293,353
Employee PAYE
190,890
180,626
Student scholarships
12,963
44,315
Student accommodation bond
11,600
9,200
GST payable
-
-
Other payables
-
1,641
1,446,073
1,141,168
Trade and other payables are non-interest bearing and are normally settled on 30-day terms, therefore the
carrying value of trade and other payables approximates their fair value.
Note 15 - Revenue Received In Advance
Western Institute of Technology at Taranaki
North Tec
Tertiary Education Commission
UCOL
PrimaryITO
Student tuition fees
Other
40
Taratahi Annnual Report 2014
2014
2013
33,786
31,941
-
11,500
38,808
78,870
136,245
63,320
12,000
-
143,888
182,947
6,940
4,267
371,667
372,845
Note 16 - Employee Entitlements
2014
2013
95,377
57,641
545,539
483,011
1,208
8,646
642,124
549,298
2014
2013
Bank overdraft
-
-
Finance leases
6,291
11,277
Total Current Portion
6,291
11,277
Secured loans
10,800,000
11,834,000
Finance leases
554
6,283
Total Non-Current Portion
10,800,554
11,840,283
Total Borrowings
10,806,845
11,851,560
Current Portion
Accrued salaries
Annual leave
Long service leave
Total Current Portion
Note 17 - Borrowings
Current Portion
Non-Current Portion
Terms and conditions of outstanding loans were as follows:
Nominal
Interest Rate
Year of
Maturity
Face Value
2014
Carrying
Amount 2014
Face Value
2013
Carrying
Amount 2013
Westpac term
loans
5.65 - 6.45%
2016-2023
10,800,000
10,800,000
11,834,000
11,834,000
Bank overdraft
7.95%
On demand
-
-
-
-
The bank loans are secured with registered first mortgages over land and buildings which have a carrying
amount of $4,086,000 (2013: $3,436,385). There is a general security agreement over Taratahi’s assets.
As at 31 December 2014, Taratahi had an undrawn loan approvals totalling $273,114 (2013: $273,114). In addition
Taratahi has $87,886 (2013: $87,886) of repaid loans that are available to be redrawn if and when required.
Analysis of Finance Lease is as Follows:
2014
2013
One to two years
6,743
12,743
Two to five years
562
6,743
(460)
(1,926)
6,845
17,560
One to two years
6,291
11,277
Two to five years
554
6,283
6,845
17,560
Total Minimum Lease Payments are Payable
Repayable as follows:
Less future finance charges
Present Value of Minimum Lease Payments
Present Value of Minimum Lease Payments
Taratahi Annnual Report 2014
41
Note 18 - Reconciliation of net surplus/(deficit) to the net cash flow from
operating activities
2014
2013
(534,582)
(29,160)
Depreciation
1,415,434
1,318,670
Amortisation
7,233
7,454
Loss due to sale of plant, property and equipment
119,343
63,731
Shares in lieu of rebate
(52,942)
(47,613)
Bonus share issue received
(2,066)
(50,000)
1,487,002
1,292,242
(156,943)
(703,521)
10,815
(245,990)
(433,756)
(4,483,087)
6,461
(4,436)
(1,182)
(24,519)
Increase/(decrease) in trade and other payables
304,905
126,435
Increase/(decrease) in bailed stock
(22,893)
(35,938)
1,388,521
2,433,092
Increase/(decrease) in revenue received in advance
(1,178)
160,028
Increase/(decrease) in employee entitlements
92,826
142,661
1,187,577
(2,635,275)
(7,661)
(18,735)
-
(40,000)
(7,661)
(58,735)
2,132,336
(1,430,928)
Net Surplus
Add/(less) Non-Cash Items
Total Non-Cash Items
Add/(less) Movements in Working Capital Items
(Increase)/ decrease in trade and other receivables
(Increase)/ decrease in accrued revenue
(Increase)/ decrease in livestock
(Increase)/ decrease in inventories
(Increase)/ decrease in prepayments
Increase/(decrease) in TEC repayment
Total movements in Working Capital Items
Add/(less) Items Classified as Investing Activities
Change in accounts payable due to capital items
Deposit for capital items
Total Items Classified as Investing Activities
Net Cash Flows from Operating Activities
Note 19 – Financial Instrument Risks
Exposure to credit, interest rate and liquidity risk arises in the normal course of Taratahi’s business activities. These
financial instruments include Bank Accounts, Bank Deposits, Accounts Receivable, Accounts Payable and Term
Borrowings, and are recognised in the Statement of Financial Position. Also available but not drawn down, as at
31 December 2014, was a bank overdraft facility of $1,250,000 with an overdraft interest rate of 7.95%. Taratahi
also has an approved credit card facility limit of $75,000 with $2,891 owing as at 31 December 2014.
Credit Risk
Taratahi has minimal credit risk in its holdings of cash or bank deposits. Short term investments are placed with
institutions which have a high credit rating and exposure to risk is minimised by limiting investments in any one
institution. Taratahi believes that these policies reduce the risk of any loss, which could arise from its investment
activities. There are no significant concentrations of credit risks in accounts payable and accounts receivable,
except for Fonterra which currently has a Standard and Poor’s Credit Rating of A. No collateral is held.
Liquidity Risk
Liquidity risk represents Taratahi’s ability to meet its contractual obligations; Taratahi evaluates its liquidity
requirements on an on-going basis. Overall, there are sufficient cash flows from operating activities to meet
the organisations obligations arising from its financial liabilities and has pre-approved loan facilities in place to
cover potential shortfalls.
42
Taratahi Annnual Report 2014
Interest Rate Risk
Taratahi regularly reviews the balance between its fixed rate and floating rate borrowings and has the
flexibility within its borrowings facilities to move between fixed and floating rates as required.
Commodity Price Risk
Taratahi is exposed to risks arising from the fluctuations in the prices and sales volume of livestock. Taratahi
has diversified its main sources of livestock revenue across four product streams - sheep meat, beef, venison,
wool and milk. This mitigates levels of exposure to prices of any one commodity.
Fair Value
The fair value of any financial instruments is equivalent to the carrying amount disclosed in the Statement of
Financial Position.
Currency Risk
Taratahi has no significant exposure to currency risk.
Sensitivity Analysis
The following table sets out the potential surplus/(deficit) impact of a reasonably possible market movement in
interest rates, with all other variables held constant, based on Taratahi’s financial instrument exposure at balance date.
2014
-100bps
2014
+100bps
2013
-100bps
2013
+100bps
Note
Financial Assets
Cash and cash equivalents
(a)
(10,910)
10,910
(9,663)
9,663
Bank overdraft
(b)
-
-
-
-
Term loans
(c)
25,000
(25,000)
35,340
(35,340)
14,090
(14,090)
25,677
(25,677)
Financial Liabilities
Total Sensitivity to Interest Rate Risk
a) Cash and cash equivalents include deposits of 1,090,960 (2013:$966,269) at floating rates
b) Bank overdrafts of $Nil (2013:$Nil) are on floating rates
c) Term loans of $2,500,000 are on floating rates (2013:$3,534,000)
Explanation of interest rate risk sensitivity
The interest rate sensitivity is based on a reasonable possible movement in interest rate, with all other
variables held constant, measured as a basis points (bps) movement. For example a decrease in 100 bps is
equivalent to a decrease in interest rates of 1%.
Classification and Fair Values
Total carrying amount
Fair value
Cash and cash equivalents
1,090,960
1,090,960
Trade and other receivables
1,825,801
1,825,801
492,996
492,996
3,409,757
3,409,757
Trade and other payables
1,446,073
1,446,073
Secured loans - floating
2,500,000
2,500,000
Secured loans - fixed interest
8,300,000
8,300,000
Unsecured - TEC repayment
8,651,992
8,651,992
20,898,065
20,898,065
2014
Financial Assets
Accrued revenue
Total Loans and Receivables
Financial Liabilities
Total Financial Liabilities at Amortised Cost
43
2013
Financial Assets
Cash and cash equivalents
966,269
966,269
1,668,858
1,668,858
503,811
503,811
3,138,938
3,138,938
1,141,168
1,141,168
Secured loans - floating
3,534,000
3,534,000
Secured loans - fixed interest
8,300,000
8,300,000
Unsecured - TEC repayment
7,263,471
7,263,471
20,238,639
20,238,639
Trade and other receivables
Accrued revenue
Total Loans and Receivables
Financial Liabilities
Trade and other payables
Total Financial Liabilities at Amortised Cost
Liquidity Risk
The following table sets out the contractual cash flows for all financial liabilities:
Carrying Contractual
amount cash flows
2014
Trade and other payables
Total non-derivative liabilities
2-5 Years
More than
5 years
1,446,073
1,446,073
1,446,073
-
-
-
-
-
-
-
-
-
6,845
7,305
6,743
562
-
-
10,800,000
13,829,445
647,170
2,647,170
6,543,260
3,991,845
8,651,992
8,651,992
2,425,006
916,938
2,750,814
2,559,234
20,904,910
23,934,815
4,524,992
3,564,670
9,294,074
6,551,079
1,141,168
1,141,168
1,141,168
-
-
-
-
-
-
-
-
-
17,560
19,486
12,743
6,743
-
-
11,834,000
15,309,419
666,188
666,188
9,787,528
4,189,515
7,263,471
7,263,471
-
2,425,006
2,750,814
2,087,651
20,256,199
23,733,544
1,820,099
3,097,937
12,538,342
6,277,166
Finance lease
TEC repayment *
1-2 Years
Bank overdraft
Term loans
12 Months
or less
2013
Trade and other payables
Bank overdraft
Finance lease
Term loans
TEC repayment *
Total non-derivative liabilities
* The terms of the TEC repayment have not yet been finalised. An Independent Advisor, PwC has been
appointed to assist the Board identify ways in which repayment can be made over a reasonable period of time
without compromising Taratahi’s financial position while ensuring the organisation remains a viable going
concern (further detail in note 24). The above contractual cash flows are based on the information available.
Credit Risk
Maximum exposure to credit risk as follows:
44
2014
2013
Cash and cash equivalents
1,090,960
966,269
Trade and other receivables
1,825,801
1,668,858
Accrued revenue
492,996
503,811
Total credit risk
3,409,757
3,138,938
Taratahi Annnual Report 2014
Cash Quality of Financial Assets
Cash and cash equivalents are held with Westpac New Zealand Limited which currently has a standard and
Poors credit rating of AA. Trade and other receivables are all with counterparties without credit ratings with
no history of default with Taratahi. No collateral is held.
Accrued revenue is amounts owed to Taratahi from Fonterra for milk supplied. Fonterra currently has a
Standards and Poors Credit Rating of A.
Note 20 – Capital Management
Taratahi’s capital is its equity, which includes general funds and asset revaluation reserve. Equity is
represented by net assets. The organisation manages its revenues, expenses, assets, liabilities, and general
financial dealings prudently and in a manner that promotes the current and future interest of the community.
Taratahi’s equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities,
investments and general financial dealings.
The objective of managing the organisations equity is to ensure that it effectively and efficiently achieves the
goals and objectives for which it has been established, while remaining a going concern.
Note 21 - Events After the Balance Date
There were no significant events after balance date that would have a material effect on the financial
statements.
Note 22 – Related Party Transactions
Key management personnel comprise Board of Trustees, Chief Executive and Senior Management who have
responsibility for planning, directing and controlling the activities of Taratahi.
During the year the Board, Chief Executive and Senior Management were paid salaries and other short term
employee benefits of $1,157,669 (2013: $1,086,906). Other than post-employment benefits relating to the
KiwiSaver scheme $31,311 (2013: $29,912), the Board, Chief Executive and Senior Managers have not received
any other post-employment, termination or other long term benefits.
During the year, Taratahi provided services to the Primary ITO of which, a retired Trustee, Barbara Kuriger was a
Director. Services provided totalled $305,723 (2013: $255,895) and were undertaken at arm’s length.
Note 23 – Trustee Fees
2014
2013
Chairman and Deputy Chairman
35,000
34,167
Other Trustees
34,470
40,666
69,470
74,833
Total Trustee Fees
Note 24 – TEC Repayment
Following the completion of a Tertiary Education Commission (TEC) review of Taratahi, Taratahi has recognised
a liability of $7.549 million plus GST ($8.652 million GST inclusive) in relation to over-funding of programmes
over the 2009 to 2014 period. The TEC’s recovery of over-funding is required as a result of the discrepancies
found between the programmes approved by the TEC and the programmes actually delivered by Taratahi. Of
the $7.549 million liability (GST exclusive), $4.830 million relates to the 2009 to 2012 period, $1.511 million to
the 2013 year and $1.208 million to the 2014 year.
This TEC repayment has been recognised in the financial statements as a current liability of $2,425,006 (2013:
nil), representing the estimated proceeds from the sale of livestock on Taratahi’s Koromiko farm and the GST
element of the debt, and a non-current liability of $6,226,986 (2013: $7,263,471).
As set out in note 25, the prior year’s results have been restated.
Taratahi is working with the TEC and its bankers, Westpac, to ensure repayments are made as required, and
Taratahi remains a going concern.
Tertiary Education Commission
The Tertiary Education Commission has confirmed that the debt is unsecured and that it is interest free.
Whilst repayment terms have yet to be agreed, the TEC have advised that:
‹‹ They expect that a repayment (circa $1.3 million) will be made when the Koromiko livestock has been sold and that their expectation is that this will occur late in 2015.
‹‹ They expect that Taratahi will work with IRD to repay to the TEC the full amount of GST on the debt ($1.1 million). They also expect that to occur in 2015.
‹‹ Their expectation is that the balance of the debt owing will be paid back as soon as possible and that the actual payment schedule will be informed by the Independent Advisor appointed to Taratahi. To this end the terms of reference (TOR) of the Independent Advisor includes this text:
“The need for the appointment of an Independent Advisor at Taratahi arises from Taratahi having to repay
the Tertiary Education Commission (TEC) $7,549,000 (GST exclusive) of SAC over-funding for the 2009 to 2014
period.
The role as described in this TOR is that an Independent Advisor (to be funded by Taratahi) will be appointed
to assist the management of Taratahi to identify ways in which this repayment can be made over a reasonable period of time without compromising the financial situation of Taratahi while ensuring that the organisation remains a viable going concern.”
Banking support
Taratahi’s bankers, Westpac, have advised that they remain supportive of Taratahi and continue to provide
banking facilities on the same basis as prior to the completion of the TEC review. This is on the basis of their
understanding that TEC has indicated ongoing support of Taratahi, and that any future agreement about
structuring of repayments to TEC will ensure Taratahi’s ongoing viability is not threatened.
They have also advised that they will complete a review by 31 January 2016 and require further information
to confirm their support of a repayment plan to the TEC, including a final agreed repayment plan with the TEC
(including support required by any other key stakeholders) and the final 2014 annual accounts.
Westpac hold security over the Koromiko livestock and have yet to give their approval for using the proceeds
as an initial repayment to the TEC. They have advised that they will consider this in conjunction with reviewing
their support of the repayment structure to the TEC once they have received the above information.
Note 25– Changes in Comparative Figures for 2013
Following the completion of the TEC review of Taratahi, Taratahi has restated the following items.
2013
Originally Reported
2013
Restated
Difference
Educational Revenue
12,710,876
11,199,664
(1,511,212)
Total Revenue
20,367,539
18,856,327
(1,511,212)
Surplus
1,482,052
(29,160)
(1,511,212)
Total Comprehensive Income
1,109,672
(401,540)
(1,511,212)
General funds, 31 December 2013
14,776,269
8,434,678
(6,341,591)
Total Public Equity, 31 December 2013
22,301,501
15,959,910
(6,341,591)
Trade and other receivables
1,074,695
1,668,858
594,163
Total Current Assets
3,867,064
4,461,227
594,163
Trade and other payables
1,468,885
1,141,168
327,717
Total Current Liabilities
2,402,305
2,074,588
327,717
-
7,263,471
(7,263,471)
11,941,115
19,204,586
(7,263,471)
Total Liabilities
14,343,420
21,279,174
(6,935,754)
Net Assets
22,301,501
15,959,910
(6,341,591)
Statement of Comprehensive Income
Statement of Financial Position
TEC Repayment (non-current)
Total Non-Current Liabilities
46
The adjustments to receivables and payables reflect the GST impact of the TEC repayment liability.
Independent Auditor’s Report
To the readers of the Taratahi Agricultural Training Centre’s financial statements for the
year ended 31 December 2014
The Auditor General is the auditor of the Taratahi Agricultural Training Centre (Taratahi). The Auditor
General has appointed me, Stephen Lucy, using the staff and resources of Audit New Zealand, to carry out
the audit of the financial statements of Taratahi on her behalf.
Opinion
We have audited the financial statements of Taratahi on pages 24 to 46, that comprise the statement of
financial position as at 31 December 2014, the statement of comprehensive income, statement of changes
in equity and statement of cash flows for the year ended on that date and the notes to the financial
statements that include accounting policies and other explanatory information.
In our opinion, Taratahi’s financial statements:
‹‹ comply with generally accepted accounting practice in New Zealand; and
‹‹ fairly reflect:
yy Its financial position as at 31 December 2014; and
yy its financial performance and cash flows for the year then ended.
Validity of the going concern basis on which the financial
statements have been prepared
Without modifying our opinion, we draw your attention to the disclosure made on page 24 that sets out
the Members of the Trust Board’s assessment of Taratahi’s ability to continue as a going concern.
The validity of the going concern assumption is dependent on Taratahi agreeing the terms of repayment
of its liability to the Tertiary Education Commission including being given a reasonable period of time to
make the repayments, the continuing support of its bankers and the Tertiary Education Commission, and
the assistance of an independent advisor to identify ways in which repayments can be made without
compromising Taratahi’s financial position.
We consider the disclosures to be adequate.
Our audit was completed on 5 November 2015. This is the date at which our opinion is expressed.
The basis of our opinion is explained below. In addition, we outline the responsibilities of the Members of
the Trust Board and our responsibilities, and explain our independence.
Basis of Opinion
We carried out our audit in accordance with the Auditor General’s Auditing Standards, which incorporate
the International Standards on Auditing (New Zealand). Those standards require that we comply with
ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
Material misstatements are differences or omissions of amounts and disclosures that, in our judgement,
are likely to influence readers’ overall understanding of the financial statements. If we had found material
misstatements that were not corrected, we would have referred to them in our opinion.
An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on our judgement, including our assessment of
risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, we consider internal control relevant to the preparation of Taratahi’s financial statements
that fairly reflect the matters to which they relate. We consider internal control in order to design audit
procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on
the effectiveness of the Taratahi’s internal control.
Taratahi Annnual Report 2014
47
An audit also involves evaluating:
‹‹ The appropriateness of accounting policies used and whether they have been consistently applied;
‹‹ The reasonableness of the significant accounting estimates and judgements made by the Members of the Trust Board;
‹‹ The adequacy of the disclosures in the financial statements; and
‹‹ The overall presentation of the financial statements.
We did not examine every transaction, nor do we guarantee complete accuracy of the financial
statements. Also, we did not evaluate the security and controls over the electronic publication of the
financial statements.
We have obtained all the information and explanations we have required and we believe we have
obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.
Responsibilities of the Members of the Trust Board
The Members of the Trust Board are responsible for preparing financial statements that:
‹‹ Comply with generally accepted accounting practice in New Zealand; and
‹‹ Fairly reflect Taratahi’s financial position, financial performance and cash flows.
The Members of the Trust Board are also responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error. The Members of the Trust Board are also responsible for the publication of
the financial statements, whether in printed or electronic form.
The Members of the Trust Board’s responsibilities arise from the Taratahi Agricultural Training Centre
(Wairarapa) Act 1969.
Responsibilities of the Auditor
We are responsible for expressing an independent opinion on the financial statements and reporting that
opinion to you based on our audit. Our responsibility arises from the Public Audit Act 2001.
Independence
When carrying out the audit, we followed the independence requirements of the Auditor General, which
incorporate the independence requirements of the External Reporting Board.
Other than the audit, we have no relationship with or interests in Taratahi.
S B Lucy
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand
48
Taratahi Annnual Report 2014
Directory
Wairarapa
Taranaki
(head office for all other enquiries)
529 Cornwall Road
RD7
Masterton 5887
T: 0800 TARATAHI
E: [email protected]
PO Box 272
343 – 345 Broadway, Stratford 4352
T: 0800 TARATAHI
E: [email protected]
Northland
291 Kamo Road
Whau Valley
Whangarei 0112
T: 0800 TARATAHI
E: [email protected]
Auckland
(campus in Franklin area)
c/o 83 Princes St
Putaruru
T: 0800 TARATAHI
E: [email protected]
Waikato/Bay of Plenty
83 Princes St
Putaruru
T: 0800 TARATAHI
E: [email protected]
Hawke’s Bay
c/o Eastern Institute of Technology
501 Gloucester St
Taradale
Napier
T: 0800 TARATAHI
E: [email protected]
Manawatu
c/o UCOL Palmerston North
Cnr Princess & Grey St
Palmerston North
T: 0800 TARATAHI
E: [email protected]
Southland
c/o Southern Institute of Technology
133 Tay Street
Invercargill, 9840
T: 0800 TARATAHI
E: [email protected]
THANK YOU TO THE MANY ORGANISATIONS TRUSTS AND INDIVIDUALS
THAT SUPPORT OUR STUDENTS WITH SCHOLARSHIPS.
Taratahi Annnual Report 2014
49
Taratahi Annnual Report 2014
www.taratahi.ac.nz