At the November 2019 hui of Te Rūnanga o Ngāi Tahu, the Financial Policy was approved.
The Financial Policy assumes Ngāi Tahu Holdings will focus primarily on achieving investment goals contained in the Investments Charter without any requirement to be the de facto financial and treasury manager for Te Rūnanga, as progressively it has become. Instead, Te Rūnanga itself will be required to develop its own financial capability via the Office of Te Rūnanga o Ngāi Tahu. The Chief Executive Officer for the Office of Te Rūnanga o Ngāi Tahu will establish a function with responsibility for the Financial Policy and related financial and accounting matters.
This proposed new financial capability the Office of Te Rūnanga o Ngāi Tahu will administer will not replace the accounting and treasury functions performed within Ngāi Tahu Holdings (which will continue to look after its own affairs in this regard, focused on its own needs).
The purpose of the Financial Policy is to:
The Financial Policy sets out the scope of functions and associated policies. It addresses policy matters such as:
Some of the above functions already operate within the Office of Te Rūnanga o Ngāi Tahu but without documented policy. Other functions do not currently operate within the Office in part because of the de facto treasury role currently undertaken by Ngāi Tahu Holdings (e.g. short-term investments, establishing treasury investment parameters and financial risk control limits).
The Financial Policy will be effective from 1 July 2020. This will ensure alignment across Te Rūnanga o Ngāi Tahu Group. It will also align with the launch of the Regional Development Investment Fund, the Investments Charter, and the new financial year.
Ongoing communication with papatipu rūnanga will occur with a round of hui planned with each papatipu.