Financial Policy

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:

  • Give effect to, and ensure, Te Rūnanga o Ngāi Tahu discharges its fiduciary obligations in relation to matters covered by the Financial Policy, including obligations set out in the Te Kawenata o Ngāi Tahu and Te Rūnanga o Ngāi Tahu Charter
  • Document the scope of financial responsibilities and authorities delegated by Te Rūnanga across Te Rūnanga Group

The Financial Policy sets out the scope of functions and associated policies. It addresses policy matters such as:

  • Statements of corporate intent and letters of expectation
  • Monitoring
  • Capital allocation
  • Cashflow management
  • Short term investments
  • Te Rūnanga debt management
  • Investment evaluation and support
  • Financial reporting and compliance
  • Budgeting and financial forecasting
  • Financial risk management
  • Treasury investment parameters and risk control limits
  • Financial procedures and controls

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).