New Zealand Red Cross Annual Report 2011-12 by New Zealand Red Cross

ANNUAL REPORT 2012 i

From Pakistan to New Zealand and around the world, technology has enabled New Zealand Red Cross to connect, to reach more, do better and be there to help those who need us most.

646,918 meals delivered

91,905

volunteer hours

7,747

volunteer drivers

MEALS ON WHEELS

9,210

5,369

volunteers

members

SUPPORTERS

5,429

620

volunteer hours

days of service

133

volunteers

HOSPITAL SERVICES

832

courses delivered

19,878

participants

PEOPLE SAVERS

volunteer coordinators

21,716

volunteer hours

13,269

patients transported

709

drivers/ volunteers

25,000

COMMUNITY TRANSPORT

170

135

new 578 Facebook likes followers Febâ&#x20AC;&#x201C;Jun per month 2012

monthly new Twitter website followers visits per month

DIGITAL CONNECTIONS 196

3,564

courses delivered

participants

SAVE-A-MATE

1,200

retail volunteers

98%

volunteer workforce

shops

RETAIL SHOPS

64,859

participants

2.84%

national growth rate

FIRST AID

New Zealand Red Cross Annual Report 2012

New Zealand Red Cross challenged the country to visit a Red Cross shop to mark World Red Cross Red Crescent Day, and help make their dollar go further.

$50 + ENGAGING IN THE WARDROBE CHALLENGE With stories of hardship being reported, especially among young people, and winter in full swing, this challenge was a fun twist on an important day, which this year celebrated the contributions of young people and the opening of a new Red Cross shop. Every dollar spent at a Red Cross shop goes back into supporting Red Cross’ work with vulnerable people in communities, and with a strong network of 51 Red Cross shops the impact makes a difference every day.

Using the power of social media and New Zealand Red Cross’ Facebook page, the pair put the challenge out to others to find a better bargain. Within seconds the votes flooded in.

Half of the 13 million Red Cross Red Crescent volunteers worldwide are young people, and so youth play a critical role in helping Red Cross reach the most vulnerable, while also helping to build healthy communities.

The challenge had 18,000 unique views on our Facebook page, more than 2,000 likes on the competition photos and 44 photo or album shares. A YouTube promotional clip also attracted close to 100 views.

The challenge was launched at Red Cross’ newest shop in Matamata with two students, one from Waikato University, the other from Wellington’s Massey University, going head to head to find their own ‘gem’.

The winner, a Canterbury University law student received 805 ‘likes’ to take out the top prize and walk away with a $400 Country Road gift card. On the flip side, the new Red Cross shop made record sales in its opening week.

People had to head to their local Red Cross shop to find an outfit for under $50 and post a photo to New Zealand Red Cross’ Facebook page, with the most ‘likes’ winning.

It was a different approach. It was a campaign that celebrated youth and our retail stores, and that let social networks mobilise national interest, prompting television, radio and print publications across the country to run stories and get interest. It was a campaign that opened awareness of New Zealand Red Cross, and what it can do, to a new generation.

ENGAGING IN THE WARDROBE CHALLENGE

18,000 2,000 44

unique Facebook page views

Facebook likes for Wardrobe Challenge photos Watch Red Crossâ&#x20AC;&#x2122; call for entries

Facebook shares of Wardrobe Challenge photos or albums Massey University student Olivia Cramond challenges other students.

New Zealand Red Cross Annual Report 2012

A blanket, hot water bottle, soup, torch radio, milo, beanie, snuggle sack, gloves and thermos mug make up the contents of a New Zealand Red Cross winter warmer pack.

A RECOVERING CHRISTCHURCH A snowfall hit Christchurch early this year, and with many still facing the harsh repercussions of last February’s earthquake, it was looking likely to be another long, cold, miserable and expensive winter. Identifying this risk, New Zealand Red Cross used its people, services and universality to respond to and again support Canterbury during a time of adversity. Before the seasonal change, the winter warmer packs were being put together by volunteers. Reminiscent of care packages Red Cross distributed during the Second World War, these packs were created to support the most vulnerable and offer some solace and a smile during another challenging time. So when winter arrived, New Zealand Red Cross was ready. Mobilising its living network of outreach volunteers and staff, 500 winter warmer packs were snapped up within days. Realising they were only just reaching the tip of those in need, the New Zealand Red Cross Earthquake Commission allocated funds from the appeal to produce another 4,000 packs. A testament to the power of social networks was a message posted on Facebook asking for all Christchurch residents struggling to stay warm this winter, as a result of the earthquakes, to request a pack. With 103 likes, 56 comments and 79 shares the post helped New Zealand Red Cross reach more, while a flow-on success saw 59 additional likes of New Zealand Red Cross’ Facebook page.

“This is such a lovely thing the Red Cross is doing. Winter is being harsh on us all,” said one recipient. Another posted: “Thank you so much for our winter warmer pack. Truly appreciate the generosity and thoughtfulness involved of all those who supported this initiative.” The reach and success of programmes like this could not be achieved so quickly and at such a level without New Zealand Red Cross’ living network. It is these people - members, volunteers and staff - that continually respond to repair, restore and support those who need it most. Red Cross acknowledges the significant tasks people face in rebuilding their lives and livelihoods and remains committed to the long-term recovery of the region. Every individual, family and community has different needs and capacities and this has been recognised in the variety and breadth of Red Cross’ recovery programmes.

CHRISTCHURCH RECOVERY

Red Cross’ Rosemary Fisher loads up the car with winter warmer packs.

Since the Earthquake Commission was established in February last year, more than 80,000 of those affected have received grants, totalling about $69 million, with a further $30 million ring-fenced for grants that are currently open. About $12 million has been put aside for recovery programmes, like training outreach volunteers to provide care in the community, distributing winter warmer packs and torch radios, supporting those displaced as a result of the earthquake and strengthening disaster response capability. The remainder of the appeal funds, about $14 million, is for further grants and programmes under development. Recovery is a marathon, not a sprint. New Zealand Red Cross may be new to recovery, but through partnerships and learnings from other National Societies around the world, and the power of living networks at home, our ability to be relevant and useful during times of adversity is changing our landscape.

See Red Cross’ message for Christchurch

4,500 103 80k

winter warmer packs produced for struggling Christchurch residents

Facebook likes for the opportunity to receive winter warmer packs

earthquake-affected Kiwis have received Red Cross grants

$12m

set aside for earthquake recovery programmes

New Zealand Red Cross Annual Report 2012

NATIONAL president’s report

When the Canterbury earthquakes shook our nation and tested us last year, it also brought out the power of humanity and the connectivity of the International Red Cross and Red Crescent Movement. In our response to this disaster other National Societies from across the globe came to support us, as did corporates and community groups. Within New Zealand Red Cross, members, volunteers and staff worked collaboratively to help the most vulnerable during their time of greatest need. This interconnectivity did not go un-noticed. The global network that had mobilised the power to enhance our response was mentioned and praised at the 31st International Conference of the Red Cross and Red Crescent Movement in Geneva last November. New Zealand Red Cross is also active in lending its support to other National Societies in their development and with resources in their time of need. This is especially relevant among the Pacific Islands, where we remain actively involved. We support programme development, resilience and capacity building as well as providing a governance enhancement programme. That connection and support is also seen through an expanding living network at home, in New Zealand. Two years ago, New Zealand Red Cross changed its governance structure and 15 area councils replaced six regional boards. This transformed the membership of the organisation. We are now starting to see the result of this change, with our members giving us a closer link into local communities, and enhancing the connection between governance, the organisation’s grass roots and staff. Area councils are one of our most successful living networks, with a reach that is far and wide. Members ensure we are able to deliver more services, and connect with and support the most vulnerable in a more relevant way. On the flip side it also increases Red Cross’ presence and profile within local communities.

“I would like to express my sincere thanks to members of the New Zealand Red Cross 2011 Earthquake Commission, who took on the daunting job of overseeing the distribution of the appeal funds. It is a difficult task that requires compassion and sound judgement. None of our work in Canterbury would have been possible without your expertise and commitment.”

Building a stronger National Society is contingent on robust and effective governance and leadership. A strong National Society also requires an engaged, committed and vibrant membership. As a strictly member-led organisation through our constitution as a National Society, the members have a say in the organisation and its direction and without them we would not exist. Young people are also playing a crucial role in the work we are doing, adding another dimension to our capability and reach. The number of youth members within Red Cross is increasing as is their influence, with two representatives sitting on our National Board. From members to volunteers and staff, everyone plays an important role in New Zealand Red Cross’ ability to reach further and do more. And the planned improvements and developments in connectivity through technology over the coming year will reduce the digital divide and increase collaboration even further. Being technologically savvy and transitioning the organisation into a more innovative space through social media, and a new website, and giving everyone access to a relevant intranet, will reduce the exclusion and isolation historically felt by some of the most remotely located members. Stronger networks between staff, members and volunteers will also develop and New Zealand Red Cross will become more interconnected, and in a better position to help change and shape our landscape as an essential part of New Zealand and international communities. Our most successful living networks are our people, who with our services respond to, repair and restore communities in times of adversity.

Penny Mason National President

National President’s Report

“ The global network that had mobilised the power to enhance our response was mentioned and praised at the 31st International Conference of the Red Cross and Red Crescent Movement in Geneva last November.”

A Red Cross youth volunteer helps National President Penny Mason and Board member Alan Webb use technology.

New Zealand Red Cross Annual Report 2012

Chief Executive’s report

“The demand for our work has steadily been increasing, and New Zealand Red Cross has been there, and will remain there for the most vulnerable in their time of greatest need.”

Chief Executive John Ware in Wellington

Chief executive’s Report

The work of New Zealand Red Cross is diverse and far reaching and this year, once again, Red Cross people have enabled our services and programmes to reach more people across more communities. Their efforts and the assistance of our generous donors should not go unnoticed. Red Cross people, members, volunteers and staff have provided in the last year humanitarian assistance in local communities in New Zealand and in 26 countries around the globe. I wish to thank all our members, volunteers, staff and international aid workers for their valued contribution, dedication and drive; it is our people who make a difference New Zealand Red Cross has developed a strategy entitled “Towards 2020” which outlines who we are, how we work and what we will do to achieve our mission. Our focus will be around five strategic aims; preparing for, responding to and enabling recovery from disasters and crises; enabling healthy and safe living; promoting a culture of social inclusion; attracting and retaining highly engaged and diverse members, volunteers and staff; having a strong financial base with growing income and robust infrastructure. The call for our humanitarian work has never been greater including the continuing needs of people and communities affected by the earthquakes in Canterbury and Christchurch in 2010 and 2011. New Zealand Red Cross is there for those in need, and will remain there for the most vulnerable. Through the generosity of New Zealanders and others from 17 other countries we have been able to provide cash grants and assistance through our long term recovery programmes. Red Cross is supporting those in need and helping prepare, strengthen and grow our own capabilities and the resilience of our communities. We have lifted our own emergency response capacity by restructuring and growing our volunteer emergency response teams. New Zealand Red Cross has large, well-resourced and mobile teams available to respond to a natural disaster. A disaster response team can be dispatched as a self-contained unit with enough gear, tents and food to be self-sufficient for 72 hours. The national disaster response team is part of a structure which includes locally based disaster welfare response teams and surge volunteers as circumstances require.

We have continued to play an influential role within the Red Cross, Red Crescent Movement and jointly pledged with the New Zealand Government at the 31st International Conference in Geneva on a number of humanitarian issues. We have advocated strongly in support of a treaty to regulate the transfer of small arms and we are currently campaigning to make nuclear weapons the target. A seamless connection between local, national and international capabilities ensures we can provide fast and relevant assistance. Our work internationally continues to be well regarded and sought after, while our collaboration with other National Societies remains integral to our development and learnings, and also gives us the opportunity to support and guide others where needed. Our lives are more interconnected, with the digital landscape increasing our reach and ability to connect. Social media, and a new website and intranet will play a more crucial role over the next year in enabling us to do more and do better when disasters strike. New Zealand Red Cross is committed to be there first, and remain there for the long term using our people, and expertise in times of need.

John Ware Chief Executive

New Zealand Red Cross Annual Report 2012

governance

National Board Penny Mason National President Penny hails from rural Hawke’s Bay and has been the National President since 2006, and was the Vice President for the two years before that. She has been instrumental in developing and facilitating significant internal structural change at New Zealand Red Cross, to ensure it is in a better position to connect with local communities. Penny has also supported other National Societies across the globe, more recently on governance advice in the Pacific. A registered nurse, specialising in burns and plastic surgery, Penny has devoted much of her life to volunteering in the community, and started her commitment to Red Cross as a Red Cross youth coordinator in the 1980s. Penny believes Red Cross is a fantastic organisation, with its local to global aspect making it unique and interesting.

“I enjoy the feeling of belonging to a huge international family. My vision during my time has been to rejuvenate the membership and to ensure New Zealand Red Cross is in touch with the grass roots by having a presence in all our communities and therefore reaching more vulnerable people.”

Paul Steere National Vice-President After a long career in senior management and stewardship largely based on international food production and marketing, Paul is now involved in an eclectic range of governorship. He has director and chairmanship roles in the salmon, wine, education, aviation, Australian seafood, and architecture industries, alongside eight years with New Zealand Red Cross. He says he find his work with Red Cross humbling, and while it is time demanding, his “efforts pale by comparison with our overseas aid workers and the many members and volunteers including professional colleagues on the Foundation and Earthquake Grants Commission”. Paul says the quintessential characterisation of New Zealand Red Cross was clearly defined by the Federation Secretary General Bekele Geleta, during his recent New Zealand visit, “our volunteers are undervalued for their wisdom of experience, their commitment and passion. For them it is not a job but a vocation and without this we would not be Red Cross”.

Alan Webb Alan is a barrister based in Auckland dealing primarily with Environmental Law. He was formally a prosecutor for the Crown and also worked at New Zealand’s leading national law firm doing a mixture of commercial and public law litigation. Alan is currently undertaking post-graduate studies through Melbourne University on Public International Law with a focus on international humanitarian law. He was formerly the chair of the Central Regional Board and has been on the National Board for six years. Alan is married with three young children.

Jennifer McMahon Jennifer is a former nurse and nutritionist, functioning in both capacities as an aid worker with the International Committee of the Red Cross from 1983 to 2000. Today she is a company director and has been New Zealand Red Cross’ Dunedin branch secretary for the last five years. Jennifer is happy and proud to be part of an organisation that promotes and adheres, to concepts and beliefs people can embrace and be passionate about. She says Red Cross shows it is flexible and in touch with our society as it begins more domestic programming, in conjunction with the renowned international work that has been done now for more than 50 years. This will be enhanced as the area council structure is embedded and strengthened, to provide an enhanced ‘living network’ within our communities, making Red Cross even more relevant.

Paul Kiesanowski Paul Kiesanowski has had an extensive 33 year career with leading accounting and professional services partnerships and is currently Managing Partner of KPMG Christchurch. Paul joined New Zealand Red Cross’ Board in July 2011. Paul chairs the Board’s Audit and Risk Committee and joins Paul Steere as a Trustee representative to the Red Cross Foundation, which manages the safe keeping and investment of the Society’s reserves and funds.

Paul says: “New Zealand Red Cross has made a significant contribution to assisting vulnerable people in our communities and overseas. I’ve long admired their work and it’s a privilege to be part of the Board in this capacity and during a time of so much need, especially in Canterbury.”

Governance

Letft to right: Steve Osborne, Jennifer McMahon, Penny Mason, Aaron Turner, Paul Kiesanowski, Mat Darling (youth representative), Debby Butler, Alan Webb and Paul Steere

Debby Butler

Mat Darling

Debby brings to New Zealand Red Cross over a decade of governance experience. She has run her own consultancy business, and had management careers in the public and private sectors. She is currently National Manager Risk and Assurance for the Department of Corrections. While a Red Cross volunteer and branch member Debby has found time to volunteer her governance expertise with Red Cross National Societies in the Pacific.

As the youth representative on the National Board, Mat has been involved with Red Cross for five years, with his commitment focused on youth involvement in grass roots activities related to emergency response. Mat is a third-year student at Otago University studying for a Bachelor of Science.

Debby said the Red Cross Movement is inspiring, with its people sharing an infectious commitment and passion. She always feels humbled to work alongside Red Cross people at all levels.

“I am in awe of the great many members who have given so much of themselves, some with 40 years’ service, 50 years, and even longer. These people are the backbone of the society and quietly continue to raise funds and do good work in the community without any thought about recognition or thanks.”

Aaron Turner A member of New Zealand Red Cross’ youth panel, Aaron Turner has been involved with Red Cross in some capacity for more than eight years. After competing studies at Otago University he moved to Auckland where he is currently studying to become a paramedic. Aaron claims to have the Red Cross ‘virus’. This fuels his passion for what Red Cross does, and ensures that most of his spare time is spent working on committees and community programmes for it, including representing Red Cross at recent Asia-Pacific and Pacific youth forums. Aaron says New Zealand Red Cross may be small, but one can never underestimate its successful living network: its people and the impact they have at a grassroots level.

He says Red Cross is an amazing organisation, helping the most vulnerable in times of need, whether locally, nationally or at an international level. Mat claims it is sobering to experience this first hand, and also to see what a difference Red Cross makes in people’s lives, which is why he volunteers.

“I have a lot of respect for those who are out there supporting New Zealand Red Cross, be it on the street corner with a bucket, delivering meals on wheels or providing disaster relief. They work tirelessly for countless hours to strengthen our society and ultimately make our country and world a better place.”

Steve Osborne Originally a high school biology teacher, who promptly retrained as a psychologist, Steve first became involved with Red Cross in his home country of Canada as a blood donor in 1976. Steve brings a wealth of experience from 20 years as a psychologist to holding prominent positions on several international governing boards. He is currently the chief executive and registrar of the New Zealand Psychologists Board. Steve likes Red Cross’ ‘purity’ of purpose and single agenda: to help those most in need. He is proud of the work Red Cross has done in Christchurch, and its international aid worker programme, he says is a great example of the effectiveness of Red Cross in action.

New Zealand Red Cross Annual Report 2012

National Operations Our lives are more interconnected than ever before, comprising powerful networks that are able to reach more and do better. The strength of New Zealand Red Cross is its members, volunteers and staff, who are responsible for the delivery of programmes and activities. Red Cross’ network enables it to call upon its people to support the needs of the vulnerable in the community during times of adversity. Last winter, a massive snowstorm blanketed Christchurch, threatening to limit, even halt, essential services. Roads were slippery and conditions hazardous, but through social networks, including radio, Red Cross was able to quickly mobilise people with four wheel drive vehicles to support the delivery of 800 hot meals to those in need; no one missed out. Every area across New Zealand is different, from their needs and wants to capabilities and requirements. Our members, volunteers and staff are a living network in these communities, enabling them to identify needs and make a difference where they are needed the most. Alan Busfield (Howick) being delivered a hot meal from volunteer Gerry Paynter

91,905 volunteer hours meals on wheels

Across the country, with media still highlighting the increasing number of young people abusing alcohol and drugs, New Zealand Red Cross’ harm minimisation programme Save-a-Mate continues to help more at risk youth. Participation rates have increased by close to 1064 per cent on last year with growing interest from secondary schools and community groups, and other agencies who want to promote healthy and safe living.

800

hot meals during the Christchuch 2011 snowstorm

Other programmes, like community transport, are also meeting a wider need in Hawkes Bay, with Red Cross members helping get secondary school students to hospital and physiotherapy appointments. A partnership with the local health board is ensuring women aged 45 to 69 years, who may not otherwise go, are being transported to have mammograms from BreastScreen Aotearoa.

1,064% increase in participation for Save-a-Mate in 2011

Watch the Save-a-Mate programme

In Taranaki, the No Limits youth programme was set up in 2010 to empower 10-to-12 year olds to reach their full potential through personal development and positive integration. The programme selects students who, because of socioeconomic or family situations, shyness or social isolation, would not normally get the opportunity to attend a development programme.

This is a small sample of the great work our members, volunteers and staff undertake on a daily basis, working with and supporting communities. Next year we will continue to utilise our people, who are part of the lifeblood and fabric of our communities, to interconnect and respond to, support and build capacity within communities, to reach more and do better.

New Zealand Red Cross Annual Report 2012

Education and Training Our global landscape is changing; society is increasing its pace with demand for things becoming more immediate. A key to remaining relevant is staying innovative. New Zealand Red Cross understands people’s time is often constrained and therefore precious, so addressed this by launching an online first aid learning platform. Its pick-up in the market exceeded expectations. The tool provides an alternative to days off work to attend a first aid class; instead individuals, businesses and communities now have the opportunity to learn online in their own time. Events of this past year have raised an alarming awareness of how precarious life can be and highlighted the need for people to know first aid before they need it. It was this ability to make a difference in critical situations that led to a number of incredible stories following New Zealand Red Cross first aid training. “The value of first response training was deeply reinforced for me. I could help to save this man’s life because I did Red Cross first aid training” New Zealand aid worker physiotherapist Cheryl Campbell said after saving a man who went into cardiac arrest in the Red Sea. Matthew Hancock’s seven-year-old son was racing through the kitchen, when he tripped and boiling water from a nearby pot poured down his back. “There would have been nothing worse than not knowing what to do. It was timely that I completed a Red Cross first aid course late last year and knew the key components of dealing with burns,” Matthew said. Six months later, to the untrained eye, Nathan bears no scar.

The digital landscape will be integral for the expanding New Zealand first aid programme. New and innovative products and services will ensure Red Cross remains competitive, and relevant and valuable to our communities in their time of need. New Zealand Red Cross first aid will continue to equip communities to be better prepared and remain resilient.

Check out first aid’s online learning platform!

2.84% national first aid participant growth rate

64,859 first aid training participants

And for Jodie Alexandra it was only a month before her Red Cross first aid training was needed. Stumbling upon an accident in Lower Hutt she performed CPR on a man who had gone into cardiac arrest. After a triple by-pass he walked away to tell the tale. “This is why the New Zealand Red Cross course was utterly invaluable,” Jodie said. “As long as you are abled bodied you can do it, everyone can do it, everyone at the scene could have done it; they just need to know how.” It is no surprise that New Zealand Red Cross’ first aid training programme is the only provider in the country that can boast a double highly confident rating following a New Zealand Qualifications Authority review. New Zealand Red Cross automated external defibrillators, or AEDs, remain a market leader. Being modern and easy to use, with no buttons, has cemented its reputation and attractive status, making them a must have for many.

New Zealand Red Cross Annual Report 2012

Fundraising and Partners From members and volunteers to donors and corporates, the success of fundraising initiatives and Red Cross’ ability to reach more are a testament to the level of collaboration, innovation and connection between these stakeholders. The power of this network and their generosity enables New Zealand Red Cross to deliver programmes that respond to needs, and repair, restore and better prepare communities in times of adversity. The success of the 2012 Annual Appeal is one example of this, with direct mail donations reaching more than $370,000 and on the street collections totalling around $400,000. Our project partners programme, now in its 12th year, continues to grow, to around 25,000 dedicated donors. We thank our committed regular donors for their generous support in giving New Zealand Red Cross more than $6.2 million, about 70 per cent of our fundraising income. This makes project partners an integral enabler for Red Cross to do what it does best – help those most in need. We are also grateful to our direct mail donors, who help us to be there to save and change lives. Bequests continue to remain a strong income source, with further engagement planned over the next year. Fundraising support continues from our valuable members, branches and groups, who are instrumental in enabling us to reach further into New Zealand communities and help more here and overseas.

and credibility. The ways we engage with our people, donors and beneficiaries will increase as we integrate current database systems and launch a new fundraising suite. Changes in the digital landscape are ensuring we connect with our donors in more relevant and engaging ways and remain transparent about where their donations are being spent. The launch of a direct mail newsletter, KindRed, which was met with a fantastic response from our supporters, will help us achieve this goal. New Zealand Red Cross remains committed to restoring and better preparing communities for the long-term. Corporate partners like New Zealand Post Group, Country Road and Kathmandu have ensured we can do this and stay relevant with our recovery activities in Christchurch. They, along with our other donors, are helping us become better prepared nationally so we can respond relevantly when a need arises. New Zealand Red Cross will continue to focus on keeping costs to a minimum, so our programmes and activities receive the greatest amount of funding. It is about ensuring every dollar makes a real difference every day.

We continue to improve and review current operating procedures to ensure New Zealand Red Cross leads the charity sector in accountability, transparency

25,000 dedicated project partners

$400k funds from street appeals

Have a look at our new fundraising mailer

New Zealand Red Cross Annual Report 2012

Purex Community Partner

Key partners:

Proud community supporter and official sponsor of ‘See Red’, Red Cross’ Annual Appeal

Johnson & Johnson Medical

Johnson & Johnson Medical Loyalty Partner Supporting the development of a new programme to educate and empower New Zealand’s youngest children

Reversed white out logo - use this for Spot printing.

Kathmandu Community Partner Supplying clothing and equipment to emergency response teams and encouraging community support

Country Road Retail Partner Sponsor of Fashion Trade and supporter of Red Cross shops throughout New Zealand

New Zealand Post Group Emergency Response Partner Providing vital support when the need is greatest

New Zealand Red Cross is deeply appreciative to those who have contributed so generously. We extend our particular thanks to the following organisations for their extraordinary support. Foodstuffs South Island Community Trust • Fonterra • Vodafone Foundation • Goldman Sachs Gives • ASB • Cranwood Co. • Shell • The St Judes Trust • BP • Silver Fern Farms • Westfield • Genesis Energy • Telecom Foundation • The Radio Network • Coca-Cola Foundation • Pfizer • Sky TV • Credit Suisse • The Warehouse • GlaxoSmithKline • Mobil • Sanofi-Aventis • Gough Gough & Hamer • Johnson & Johnson Group • Fisher & Paykel • Bell Gully Left: Volunteers collect for Red Cross Annual Appeal; Right: New Zealand Red Cross says thank you on Facebook

New Zealand Red Cross Annual Report 2012

Marketing and Communications A new team, new direction and new focus are helping develop a more interconnected New Zealand Red Cross community. The power of this transformation is shaping and changing the landscape of who New Zealand Red Cross is, and how we are seen. Following a year of adversity, the communications and marketing team, which includes policy and advocacy, is building a more sustainable, relevant and innovative future for New Zealand Red Cross. A new website, currently being developed with a launch date set for December, will provide an engaging picture of what Red Cross is doing. The user-friendly site will offer greater transparency for our donors, easy access and booking for services such as first aid courses and restoring family links, and greater support to those looking for help. For the first time our website will also connect Red Cross people in one place. An interface for members, Red Cross Board and volunteers will allow them access to a new intranet, as part of an internal communications strategy. Electronic newsletters have been developed with a range of purposes, from supporting the chief executive’s weekly message to discussing international humanitarian law and communicating fundraising messages to donors. In the area of social media, Facebook posts have reduced in the last six months by a third, but tweets have increased. These now focus on optimal time slots and content that our users are interested in. As a result, engagement has increased significantly, while the number of followers is growing steadily.

Our own living network is integral to our social media growth. This was highlighted by a tweet for retail donations in Wellington seeing @NZRedCross trending in Wellington and getting 22 retweets. The launch of our national disaster response team saw 40 people share the content, 200 people click through to our website and more than 200 views of the video posted. Other key activities include supporting media and marketing for international operations, our aid worker programme, first aid, retail and national programmes, as well as undertaking media training with senior management, staff and emergency response volunteers. This year has also seen the development and creation of recruitment campaigns for volunteers, a digital asset portal and streamlining of new marketing collateral, all helping to inform the development of a brand strategy. New Zealand Red Cross’ brand continues to remain highly visible, its power helping shape how we function and grow. Red Cross publications

In a first, we tweeted live from the Christchurch commemorative service, bringing the nation together to mourn one of our country’s greatest tragedies. We also used social media to celebrate our annual appeal, and maintained internal and external user interest for a week.

2012

See an interview with one of our aid workers

Jan Feb Mar

Launched regular contribution and continuous moderation of Facebook and Twitter pages Live tweeting from the Christchurch Commemorative Service – 22 February Annual Appeal sees many followers helping to retweet messages and share content on Facebook Facebook album images of Appeal participants and staff generates both internal and external support.

April

Facebook community support spreads message of Disability Support Grant for earthquakeaffected Christchurch residents

May

Launch of the Wardrobe Challenge on World Red Cross Red Crescent Day brings record numbers of fans to our Facebook page.

June

Tweet for retail donations in Wellington – @NZRedCross trending in Wellington on Twitter – 22 retweets of our message alone.

New Zealand Red Cross Annual Report 2012

International Humanitarian Law As armed conflict around the world makes headlines, never before has the need to understand the laws of wars been so acutely at the forefront of people’s minds. The idea expressed in international humanitarian law is simple: even wars have laws — the set of international rules that seek to limit the effects of armed conflict on people and objects to reduce suffering and damage. Red Cross has been at the forefront of advocating for, and educating people on wars, laws and humanity. This remains a key priority of New Zealand Red Cross and the wider Movement. So it was no surprise that in November New Zealand Red Cross made seven pledges at the International Conference, which brings together ICRC, the Federation and 187 national societies worldwide. Two were individual pledges, four were joint with our Government and we teamed up with other Pacific Island National Societies and one other. Several of these pledges concerned strengthening our work in this area. Mainstream and social media interest in IHL activities has exceeded expectations, with a consistent interest in new programmes achieving record coverage, not only for the programme but in comparison with other Red Cross activities. This programme is reaching further and reaching more through the digital landscape. The power of social connections is illustrated by Red Cross’ being able to gain significant reach and success in raising public and political awareness of the importance of a strong and comprehensive Arms Trade Treaty for New Zealand and the wider Pacific region. Every year, because of the widespread availability and misuse of weapons, hundreds of thousands of people are displaced, injured, or killed. Recent armed conflicts further highlight the crucial need for legally binding standards that stop irresponsible arms trades and transfers. Prior to the United Nations negotiating conference in July, New Zealand Red Cross joined with Amnesty International – Aotearoa New Zealand and Oxfam New Zealand to raise public and government awareness of the need for a strong and robust Arms Trade Treaty. Youth are supporting the IHL programme. Woodford House in Havelock North hosted the first Women and War seminar highlighting the issues faced by women and girls in modern warfare. Aid workers and people from a refugee background shared their stories, with an interactive photo exhibition and role playing putting the girls themselves in the spotlight. Youth, the community and Red Cross members and staff were brought together to teach, learn, and develop a greater understanding of this issue and how it may affect their own environments. The ‘make nuclear weapons the target’ awareness campaign was also launched through youth. An essay competition was held using mainstream and social media

Female fighters being taught about international humanitarian law in Colombia. [credit: ICRC]

and education institutions to canvas student interest and involvement. In collaboration with ICRC, the essay asked New Zealand tertiary students to answer the question ‘why do we need an international treaty to ban nuclear weapons?’, with a $1,000 cash prize for winning. Later in the year the campaign will take on another level, bringing in celebrities, war veterans and students to help educate a new generation on the impact of nuclear weapons. Our www.targetnuclearweapons.org.nz website was launched at Parliament on 30 August. This site calls on people to sign up online using their Facebook or Twitter accounts and when the power of humanity offsets the force of 150,000 Hiroshima bombs, the estimated combined force of 20,000 nuclear weapons held globally, a social explosion will be ignited. Our lives are more interconnected than ever before and this enables our message to be delivered to more. Young people are more engaged and are keen to voice their opinions on issues, while other members of the population want to share knowledge and lessons learnt. This year New Zealand Red Cross’ international humanitarian law programme will capitalise on this connection to bring a united voice to make a difference.

New Zealand Red Cross Annual Report 2012

Red Cross Shops Our national footprint of shops continues to grow. Over this last year nine new stores were opened and three were revamped to meet changing community needs. It is a growing presence New Zealand Red Cross has never had before, helping us to connect with local communities by offering a quality service, with the added incentive that all profits raised are invested directly back into our work supporting the most vulnerable. When the Matamata shop opened, it became the flagship in launching a New Zealand Red Cross wardrobe challenge celebrating World Red Cross Red Crescent Day. It was an innovative marketing platform which produced significant outcomes. The store broke Red Cross sale records in its opening weeks as well as achieving the most interest on social media for a single campaign. Media interest across the country was also high. By the third week, the store had made more than $33,000. Our network of stores is brought to life by 1,200 volunteers, who make up 98 per cent of our retail workforce. Their time is invaluable in ensuring we can deliver. The stores are more than a shop; they are part of a community, servicing needs and creating connections that begin with our volunteers.

In Hamilton, the stores are supporting people from migrant backgrounds by providing vouchers. In Fitzroy, shop loyalty vouchers are being offered, another pioneering trial aimed at connecting with more people. Innovation and development have changed the landscape of our retail presence. For the first time, we bought an existing retail store and turned it into a Red Cross shop, a move we will look to continue as part of our target of opening a further eight stores over the next year. In another first, a joint venture with a local recycling outlet in Rotorua has created a 500sqm store in the city centre, while a 600sqm processing centre in Hamilton offers a distribution and sorting point to ensure the right products, of the right quality, go to where they are needed most. Unfortunately the February Christchurch earthquake saw the closure of one of our central city stores there. Although the building may be lost, the volunteers were keen to remain with Red Cross so relocated to other stores, with the shop coordinator taking a new role in Nelson.

1,200 retail volunteers

retail shops

Ensuring Red Cross maintains its high standard has resulted in a full assessment of the safety and quality of all buildings we operate out of. Three shops had to relocate due to seismic risk. The Ashburton shop, operated by Red Cross members, was the first to move. In ensuring our shops remain leading edge, the move into the digital realm is growing more important. A recent tweet calling for clothing donations to Wellington shops was one of New Zealand Red Cross’ most popular Facebook posts and achieved our first trending post on Twitter. Remaining at the forefront of integration and outreach, Red Cross shops will continue to be original, relevant and appealing to communities. This successful living network uses our people and services to make a difference.

A sneak peak at Red Cross shop Pinterest page

The new Red Cross shop in Tawa opened in early 2012

New Zealand Red Cross Annual Report 2012

International Operations and Emergencies As drinkable water became scarce in Nukalaili, on the island nation of Tuvalu in late 2011, New Zealand Red Cross was there. Sending two relief aid workers and supplies, we worked closely with Tuvalu Red Cross, who asked for our help with their immediate response to the drought. We mobilised 2,000 collapsible water containers, hand sanitisers, tarpaulins (to be used to capture rain) and two emergency desalination units. New Zealand Red Cross is leading the charge through technological innovation. Desalination units are now so compact and portable they can be taken on an airplane as checked in luggage. In this instance we were able to teach Tuvalu residents how to distil water and work independently to support their own community. The desalination units remain a permanent fixture on the island. For the first time, first aid training in situations of violence was developed and then offered, in partnership with Red Cross for Papua New Guinea. Tonga, Samoa and Fiji will also receive training, adapted to the context of each country. Although most of these nations are not involved in conflicts, a changing global landscape has led to a desire to be responsive to changing needs and be prepared.

340

individuals in Laos received prosthetics

While we are there for our neighbours, New Zealand Red Cross’ reputation ensures we also make a lasting contribution to some of the biggest humanitarian needs across the globe. In some of the world’s most complex situations, like Gaza and Syria, New Zealand aid workers are there. Our aid worker programme gained high praise this year, following an independent review released in late May. Feedback was provided on the relevance, efficiency, effectiveness and sustainability of the programme and the prerequisite training to be an aid worker. In October Red Cross aid worker Andrew Cameron became one of 25 New Zealanders to receive one of the world’s highest nursing honours, the Florence Nightingale medal at a ceremony at Government House. Only 50 Florence Nightingale medals are awarded worldwide every two years. Every year, New Zealand Red Cross remains committed to supporting the response to disasters. In the past year we have supported crises across Asia, Africa and the Middle East, contributed $847,000 to Pacific development programmes and supported 48 missions overseas. New Zealand Red Cross provides many types of support, including helping 340 individuals get prosthetics in Laos. At home, the Christchurch earthquake was the catalyst that led to being better prepared to service our own needs. If a disaster strikes in New Zealand, anywhere at any time, Red Cross has a well-trained response team available. Never before has New Zealand Red Cross had such a large, well-resourced and highly mobile team on hand to respond. The national disaster response team will provide all the services of the Red Cross disaster response teams, as well as offering pre-hospital emergency care, and urban search and rescue capability. This team can be sent as a self-contained unit, with enough gear, including tents, eating utensils and food to be self-sufficient for 72 hours. This team complements the existing volunteer structure of disaster surge volunteers and disaster welfare support teams. Our most successful living network is our people. The combined integration and outreach of our members, volunteers and staff enable us to reach further, do more and do better.

Check out Red Cross’ national disaster response team

NewÂ Zealand Red Cross Annual Report 2012

Aid workers on international missions The below list is made up of aid workers supported by NewÂ Zealand Red Cross between 1 July 2011 and 31 June 2012. This includes aid workers that ended missions in 2011/12 as well as those with start dates in the 2011/12 financial year. Middle East

Western and Northern Africa

Joshua Herron | Senegal Joyce Hood | Libya Judy Owen | Libya

Security Health Health

Resource mobilisation Logistics Relief Disaster response Health Health Health Health

NewÂ Zealand Red Cross Annual Report 2012

Mission areas communications / IT & T ERU disaster management & recovery health / first aid / surgeons / hospital management / physiotherapists

logistics / resource mobilisation

organisational and branch development / monitoring and evaluation relief

security / economic security

shelter /community habitat

water / water & habitat / sanitation

Water and sanitation Water and sanitation Monitoring and evaluation Hospital project manager Water and sanitation Disaster recovery Monitoring and evaluation Logistics

Community habitat IT & T ERU IT & T ERU Organisational development Water and sanitation Water & habitat Disaster management Water & habitat First aid First aid First aid First aid 23

New Zealand Red Cross Annual Report 2012

Restoring family links “My husband and I would like to thank you for the great news you have told us regarding the tracing of my son. I cannot describe how happy I am today,” said a message received by New Zealand Red Cross from a mother reconnected with her son after a six-year separation. A distressing effect of conflict and natural disasters is population displacement, leaving people unable to contact family or friends. People may not know where to turn to find or contact loved ones or even to find out if they are still alive. In these situations New Zealand Red Cross works worldwide to restore and maintain contact for separated families by tracing family members and exchanging messages of news. In this case, the mother relocated to New Zealand and later heard through a friend that her son was alive, he had been spotted at a church in Nairobi. She contacted New Zealand Red Cross and used its restoring family links service. The neutrality and reach of Red Cross’ network help make it easier to exchange family news, re-establish contact and clarify the fate of the missing across borders, frontlines and into areas most cannot reach. Five months after this mother heard word of her son, the ICRC sent a letter to New Zealand Red Cross: he was alive and wanted to see her. Not every tracing case is solved, or has a happy ending, but through the combined network of the Red Cross Movement, its people, services and universality New Zealand Red Cross is able to respond and help restore contact where it can. The restoring family links service also facilitates the issue of ICRC travel documents. This helps people who need to leave their country of residence and do not have access to official identification documents, like a passport. Applicants are required to have their entry visa pre-approved by New Zealand Immigration to receive this service. This year more than 100 new restoring family links cases opened in New Zealand.

A Red Cross message

Ensuring Red Cross’ restoring family links service remains technologically relevant, is essential to keeping the service valuable. In cooperation with National Societies, the ICRC is working on a new, interactive website for people wishing to restore contact with loved ones. The site will complement additional services that will be available on New Zealand Red Cross’ website from December. Saying goodbye to a loved one in any circumstance can be hard. In situations of conflict and disaster that opportunity may never arise, and many don’t know if they will ever see or hear from family members again. Red Cross provides peace of mind and hope to people who have been separated.

New Zealand Red Cross Annual Report 2012

CANTERBURY EARTHQUAKE RECOVERY UPDATE New Zealand Red Cross is committed to the long-term recovery of Christchurch. We are expanding our outreach programme, our work with bereaved families and launching a range of new programmes over the next year.

Top Ten Grants by Applicants Total number of applicants: 79,844

2011 Emergency & Hardship Grant 2011 Alternative Severage System Grant 2010 Hardship Grant 2011 Temporary School Grant 2011 Winter Assistance Grant 2010 Damaged Home Grant 2012 Winter Assistance Grant 2011 Bereavement Grant 2010 Emergency Grant 2010 Relocation Grant 2012 Disability Support 2011 Independent Advice Grant All Other Grants

“Pretty cool... can’t wait to take this home.” — six year-old Gus Khuton on receiving a torch radio “The generosity of those who donated to the appeal has been staggering, and working through how to distribute the funds has been a very big responsibility, and one all the commission members have not taken lightly.” — C hair of the New Zealand Red Cross 2011 Earthquake Commission Chair Sir John Hansen. “It was a big occasion and the water was very good.” — Jim Curnow on receiving a enhanced water filter grant just in time for his 90th birthday.

Top Ten Grants

Total amount disbursed: $69,561,000

$30m 1,120 259

outreach visits

torch radio presentations to community groups

475

winter warmer packs

19,962

torch radios handed out

$14m

committed grant funding

grants and programmes under development

$125m

in funds raised

Torch radio distributions at 1 July 2012

11,606

Primary school children Elderly people People with disabilities Refugees and migrants Community events Outreach Distributed from Christchurch office

1,548 622 51 968 720

80,000 $5m 167

grants recipients

spent on programmes

mobility assistance vouchers

2,189 62

door knocks

outreach volunteers

4,447 25

financial statements 26

financial statements

Statement of Service Performance For the year ended 30 June 2012

Actual 2012

Planned 2012

Actual 2011

Planned 2011

Actual 2010

Planned 2010

Actual 2009

283

330

259

280

260

300

290

Number of IT&T ERU Technician missions achieved

Number of International Special Appeals supported

$1.0M

$3.7M

$8.4M

$6.0M

International Programmes

Delegate deployments achieved Delegate deployment months achieved

Contributions to International Special Appeals Development Programmes Supported

Development Grants to Pacific National Societies

140

2,000

1,500

1,000

23,442

19,824

13,623

15,202

10,973

12,809

9,766

646,918

578,201

671,635

729,233

696,875

759,528

759,532

768

839

1,058

822

529

265

1,072

IHL seminar/training participants*

1,080*

855*

865*

Patients transported in community transport programmes

13,269

8,545

15,774

11,133

10,059

7,889

7,874

Yes

64,859

69,612

63,080

70,313

67,583

73,033

68,668

Restoring Family Links requests administered Disaster Relief Family Kits Stored

Emergency Management

Aggregated last year as â&#x20AC;&#x201C; Number of Operational Red Cross Response Teams Community Programmes

Develop new National Programmes Community Training participants Meals on Wheels delivered Refugees supported

Education and Training

Maintain registration as PTE Commercial Training Participants Retail

Number of shops (including Branch Shops) New shops opened

Left: Women in India collecting water [credit: ICRC]

New Zealand Red Cross Annual Report 2012

Financial Summary It is a pleasure to present the financial accounts for the year ended 30 June 2012.

FUNDRAISING ACTIVITIES

The past year has seen a continuation of solid financial performance. Although activities following the Christchurch earthquakes continue, there has been no reduction in the delivery of community services and other international aid programs to the vulnerable.

Fundraising revenue reflects a decrease of $91 million in the current year due to the reduction in Christchurch donations as this appeal winds down. After deducting the impact of public and government special appeal donations in both periods there is an increase in other fundraising revenue of $2.2 million or 18%. The major component of this increase has come from our regular monthly donors who have increased their total contribution by $1.3 million which is 25% above last year. The Annual Appeal revenue of $0.5 million is also additional given that last year’s appeal was all attributed to the Christchurch earthquake appeal.

On reviewing the statement of financial performance it can be noted that New Zealand Red Cross including the Foundation, recorded a surplus of $7.6 million. Accumulated Funds increased by $1.5 million and a continuation of donor support saw the Christchurch reserve increase by $8.2 million during the year. The New Zealand Red Cross Foundation Incorporated (Foundation) continues to fulfil its role – to generate sustainable revenue streams and maintain the value of investments. The Foundation had realised revenue of $2.6 million (2011; $2.4m) with New Zealand Red Cross receiving $1.2m in interest earnings, $0.75m to cover operational costs and $0.5 million to assist with the additional costs incurred in processing earthquake grants. A net deficit of $0.2 million was however recorded by the Foundation after taking into account the unrealised loss of $2.1 million from the Fair Value movement in Investments. The total surplus of $9.1 million reported by New Zealand Red Cross excluding the Foundation is affected by the accounting policy of recognising all special appeal revenue and expenditure in the year that it is received or expended. In the current year special appeal reserves increased by $9.1 Million (primarily Christchurch). Without the increase in reserves there was a near breakeven result ($37k) on our conventional activities for the year which was consistent with the National Board’s expectations.

CORE ACTIVITIES

During the year we spent a total of $18.9 million on our core humanitarian activities. While the majority was for Canterbury, $5.4 million was spent on other disaster relief activities and $2.8 million on community activities including meals on wheels, community transport and community training. $0.5 million was spent on domestic emergency management and international humanitarian law. The work carried out by Branches represents a significant component of both fundraising activity and domestic humanitarian activity. While the volunteer nature of this activity is not measured in the financial statements the actual revenue generation achieved by Branches in the year totalled $1.3 million from activities including the annual appeal, special appeals, book sales, property rentals, lottery sales, and meals on wheels. Expenditure on these activities totalled $0.6 million providing a surplus of $0.7 million towards other activities. CHRISTCHURCH RESERVE

New Zealand Red Cross Inc. Conventional Activities (in thousands of dallars)

Trading & Administration Activities Fundraising Activities -Revenue Humanitarian Activities - Expense Surplus (Deficit) from Activities

2012 (526) 8,891 (8,402)

2011 (398) 9,171 (7,959)

(37)

814

TRADING AND ADMINISTRATION ACTIVITIES

The net surplus from trading activities was $2.8 million. This represents a healthy increase of 36% on the previous year with excellent gains from both first aid (up 27%) and shop activity (up 42%). Net administration costs of $2.7 million increased by 10% and the net combination of trading and administration resulted in a small surplus $82,000. As a consequence net fundraising revenue can exclusively be used to support our humanitarian programmes.

Donations and interest earned resulted in the Christchurch Appeal receiving additional funds of $18.8 million. New grants were approved during the year which are projected to require a further $30 million of the current fund balance if applications meet expectations. Actual payments during the year totalled $10.6 million which was spread between grants, recovery activities and capacity building. It is anticipated that due to the complexities and scale of the disaster that it may take in excess of five years to deliver aid to the affected communities of Christchurch. STATEMENT OF FINANCIAL POSITION

Accumulated funds at 30 June 2012 were $54.3 million after consolidating funds from the Foundation, an increase of $1.5 million over the previous year. The total funds including restricted funds, the Christchurch reserve, and the asset revaluation reserve, were $117.8 million, an increase of $6.8 million over the previous year. Consolidated Net Assets at 30 June 2012, were $117.8 million (2010, $111.0 million) which includes cash $54.3 million (2010, $53.8 million) property, plant and equipment of $23.4 million (2010, $23.3 million), and investments of $33.5 million (2010, $36.1 million). Bruce Jones National Business Services Manager

financial statements

Statement of Financial Performance For the year ended 30 June 2012 in thousands of dollars

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

2012

2011

2012

2011

Income

15,706

14,243

14,990

14,311

Expenditure

15,624

14,802

15,516

14,709

Note Trading and Administration Activities

Trading and Administration Activities Surplus/(Deficit)

(559)

(526)

(398)

Fundraising Activities

Income

32,186

123,233

32,160

123,233

3,705

2,744

3,705

2,876

28,481

120,489

28,455

120,357

18,876

74,888

18,876

74,888

Humanitarian Activities Deficit

18,876

74,888

18,876

74,888

Surplus from all Activities

9,687

45,042

9,053

45,071

Change in the fair value of investments

(2,081)

1,642

Total Surplus for the Year

7,606

46,684

9,053

45,071

Expenditure Fundraising Activities Surplus Humanitarian Activities

Expenditure

Statement of Comprehensive Income For the year ended 30 June 2012 in thousands of dollars

New Zealand Red Cross & Red Cross Foundation Total Surplus for the Year

New Zealand Red Cross Incorporated

2012

2011

2012

2011

7,606

46,684

9,053

45,071

Other Comprehensive Income

Revaluation of land and buildings Restricted funds Total Other Comprehensive Income Total Comprehensive Income for the Year

(817)

1,604

(817)

1,604

361

(817) 6,789

1,965 48,649

(817) 8,236

1,965 47,036

The notes on pages 34 to 44 are an important part of, and should be read in conjunction with these financial statements.

New Zealand Red Cross Annual Report 2012

Statement of Changes in Members’ Funds For the year ended 30 June 2012 in thousands of dollars

Note

Opening Balance

Comprehensive Income

Funds Transfers

Closing Balance

52,780

7,606

(6,123)

54,263

New Zealand Red Cross & Red Cross Foundation 2012

Accumulated funds Restricted reserves

2,452

(2,069)

383

Christchurch reserve

44,204

8,192

52,396

Asset revaluation reserve Total Members’ Funds

11,541

(817)

10,724

117,766

110,977

6,789

Accumulated funds

50,208

46,684

(44,112)

52,780

Restricted reserves

2,183

361

(92)

2,452

44,204

New Zealand Red Cross & Red Cross Foundation 2011

Christchurch reserve Asset revaluation reserve

9,937

1,604

11,541

62,328

48,649

110,977

34,125

9,053

(6,123)

Restricted reserves

2,452

(2,069)

383

Christchurch reserve

44,204

8,192

52,396

Asset revaluation reserve

11,541

(817)

10,724

Total Members’ Funds

92,322

8,236

100,558

Accumulated funds

33,166

45,071

(44,112)

34,125

Restricted reserves

2,183

361

(92)

2,452

44,204

9,937

1,604

11,541

45,286

47,036

92,322

Total Members’ Funds New Zealand Red Cross Incorporated 2012

Accumulated funds

37,055

New Zealand Red Cross Incorporated 2011

Christchurch reserve Asset revaluation reserve Total Members’ Funds

The notes on pages 34 to 44 are an important part of, and should be read in conjunction with these financial statements.

financial statements

Statement of Financial Position As at 30 June 2012 in thousands of dollars

Note

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

2012

2011

2012

2011

Membersâ&#x20AC;&#x2122; Funds

Accumulated funds

54,263

52,780

37,055

34,125

Restricted funds

383

2,452

383

2,452

Christchurch reserve

52,396

44,204

52,396

44,204

10,724

11,541

10,724

11,541

117,766

110,977

100,558

92,322

Asset revaluation reserve Total Membersâ&#x20AC;&#x2122; Funds Comprising: Assets

Cash and cash equivalents

63,408

53,809

58,381

49,467

Trade and other receivables

2,018

1,986

1,917

1,925

739

1,047

739

1,047

3,944

6,349

5,823

7,997

70,109

63,191

66,860

60,436

Inventories Investments

Total Current Assets

Investments

29,586

29,792

15,612

13,755

Property, plant and equipment

23,442

23,275

23,442

23,275

Intangible assets

510

634

510

634

53,538

53,701

39,564

37,664

123,647

116,892

106,424

98,100

2,510

1,591

2,495

1,454

413

276

413

276

819

752

819

752

Provision for Samoa recovery project

2,139

3,296

2,139

3,296

Total Current Liabilities

5,881

5,915

5,866

5,778

Total Liabilities

5,881

5,915

5,866

5,778

117,766

110,977

100,558

92,322

Total Non-Current Assets Total Assets Liabilities

Trade and other payables

Income received in advance Provision for employee entitlements

Net Assets

For and on behalf of the National Board who authorised the issue of these financial statements on 22 September 2012

Penny Mason National President

John Ware Chief Executive The notes on pages 34 to 44 are an important part of, and should be read in conjunction with these financial statements.

NewÂ Zealand Red Cross Annual Report 2012

Statement of Cash Flows For the year ended 30 June 2012 in thousands of dollars

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

2012

2011

2012

2011

Trading and administration activities

16,036

13,479

15,663

13,802

Fundraising activities

32,599

122,736

32,573

122,736

Cash Inflow from Operating Activities

48,635

136,215

48,236

136,538

Trading and administration activities

15,115

14,177

15,007

14,084

3,617

2,744

3,617

2,876

Humanitarian activities

18,876

74,730

18,876

74,846

Cash Outflow from Operating Activities

37,608

91,651

37,500

91,806

Net Cash Inflow from Operating Activities

11,027

44,564

10,736

44,732

9,510

3,590

426

1,237

Cash Inflow from Investing Activities

9,566

3,672

482

1,319

Purchase of investments

8,799

2,304

109

1,165

Purchase of property, plant and equipment

2,183

1,191

2,183

1,191

Cash Outflow From Investing Activities

10,994

3,534

2,304

2,395

Net Cash (Outflow)/Inflow from Investing Activities

(1,428)

(1,822)

(1,076)

Net Increase in Cash Held

9,599

8,914

43,656

Cash Flows from Operating Activities

Fundraising activities

Cash Flows from Investing Activities

Sale of investments Sale of property, plant and equipment

Purchase of intangibles

138 44,702

New Zealand Red Cross & Red Cross Foundation Net increase in cash held

2012 9,599

2011 44,702

New Zealand Red Cross Incorporated 2012 8,914

2011 43,656

Add opening cash

53,809

9,107

49,467

5,811

Closing Cash

63,408

53,809

58,381

49,467

This is represented by:

Cash and cash equivalents

63,408

53,809

58,381

49,467

Total Cash and Cash Equivalents

63,408

53,809

58,381

49,467

The notes on pages 34 to 44 are an important part of, and should be read in conjunction with these financial statements.

financial statements

Statement of Cash Flows (continued) For the year ended 30 June 2012 in thousands of dollars

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

2012

2011

2012

2011

7,606

46,684

9,053

45,071

Depreciation charge

1,143

1,038

1,143

1,038

Amortisation charge

136

176

136

176

(321)

(764)

(509)

Decrease/(Increase) in inventories

308

(504)

308

(504)

(Decrease)/Increase in accounts payable and provisions

(63)

(49)

(43)

Increase in income received in advance

137

(500)

2,081

(1,642)

11,027

44,564

10,736

44,732

Reconciliation of the Total Surplus for the Year with Net Cash Inflow from Operating Activities

Total Surplus for the Year Add Non-Cash Items

Add/(Deduct) Changes in Working Capital Items

(Increase)/Decrease in accounts receivable

(Decrease) in special appeals Add/(Deduct) Investing Activities

Change in fair value of investments Net Cash Inflow from Operating Activities

The notes on pages 34 to 44 are an important part of, and should be read in conjunction with these financial statements.

New Zealand Red Cross Annual Report 2012

Notes to the Financial Statements For the year ended 30 June 2012

1. Summary of Accounting Policies Reporting Entity

These consolidated financial statements and the accompanying notes summarise the financial results of activities carried out by New Zealand Red Cross Incorporated (“Red Cross”) comprising the offices of New Zealand Red Cross and branches (parent entity) and the activities of the New Zealand Red Cross Foundation Incorporated (consolidated entity). Red Cross is part of the largest humanitarian organisation in the world, helping people wherever they might be – international or in our own communities – to improve the lives of vulnerable people by mobilising the power of humanity and enhancing community resilience. The New Zealand Red Cross Foundation Incorporated (the “Red Cross Foundation”) was established in 1978 to hold and invest Red Cross’s investments to generate a source of sustainable income. The Red Cross Foundation is controlled by the Red Cross. Statement of Compliance

Red Cross is a society incorporated under the Incorporated Societies Act 1908. The Red Cross Foundation is a charitable trust registered under the Charitable Trusts Act 1957. Both Red Cross and the Red Cross Foundation are registered as charities under the Charities Act 2005. Red Cross is a Public Benefit Entity. The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand. They comply with the New Zealand Equivalents to International Financial Reporting Standards and other applicable financial reporting standards as appropriate for public benefit entities. The financial statements have been prepared in accordance with the differential reporting framework issued by the New Zealand Institute of Chartered Accountants as Red Cross and the Red Cross Foundation have no public accountability and there is no separation between the owners and the governing body. All differential reporting exemptions allowed under the framework for differential reporting have been applied, with the exception of NZ IAS-7 Statement of Cash Flows. The functional and presentation currency is New Zealand dollars.

in the preparation and presentation of the consolidated financial statements. In preparing the consolidated financial statements, all intra-entity balances and transactions, and any unrealised profits arising within these transactions, are eliminated in full. Significant Accounting Policies

The following significant accounting policies have been adopted in the preparation and presentation of the financial statements: a. Revenue Recognition

Public donations are recognised as received. Donations received for International Red Cross Appeals are transferred in full to the International Appeal Fund or to the relevant Red Cross National Society. Those donations for Special Appeals which have not been expended at balance date are recorded as restricted funds in the Statement of Financial Position except to the extent the National Board has identified an actual or constructive obligation to incur expenditure in which case a provision is recognised. Red Cross has significantly benefited from donations of services and goods by volunteers, members and by other organisations. Donations in kind are only recognised in revenue when the value can be reliably measured. Grants received are not recognised as revenue until the requirements of the grant agreement have been met. Government grants, which are subject to restrictions but are not required to be returned to the grantor, are recognised as income when they are received. Legacy income represents bequeaths to Red Cross from estates. Legacy income is recognised when actually received. First aid training courses completed during the year are recognised as income based on the percentage of completion method. Revenue from the sale of goods is recognised when the risks and rewards of ownership have been significantly transferred to the buyer. Interest is recognised using the effective interest rate method. Dividends are recognised when the rights to receive payment has been established.

Basis of Preparation

b. Expense Recognition

The financial statements have been prepared on the basis of historical cost, except for:

Expenses are recognised on an accruals basis.

• certain financial assets (investments) which are carried at fair value; • the revaluation of certain non-current assets (land and buildings); and • inventory which is carried at the lower of cost or net realisable value. 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. These financial statements have been prepared using the accrual basis of accounting except for the Statement of Cash Flows and donations. Basis of consolidation

The consolidated financial statements are prepared by combining the financial statements of Red Cross and the Red Cross Foundation. Consistent accounting policies are employed

Trade and other payables are recognised when an obligation to make future payments resulting from the purchase of goods and services exists. Provisions are recognised when it is probable that a present obligation, as a result of a past event, for the future sacrifice of economic benefits can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at balance date, taking into account the risks and uncertainties surrounding the obligation. Actual or constructive commitments made by the National Board to fund specific projects from restricted funds are recognised as provisions. An obligation to fund a project or expenditure is considered to exist when the National Board has agreed to a specific project plan and the intention to fund the project or expenditure has been formally communicated to the recipient.

notes to the financial statements Provision is made for benefits accruing to employees in respect of wages, salaries and annual leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions made in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. c. Asset Recognition and Measurement

Inventories are valued at the lower of cost, determined on a first-in first-out basis, and net realisable value. Land and buildings legal title is in the name of Red Cross. Land and buildings are measured at fair value. Fair value is determined on a rolling cyclical basis with valuations prepared by independent registered Valuers. Recent acquisitions and improvements are carried at cost less depreciation. Revaluation increases arising on the revaluation of land and buildings is credited to the asset revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in which case the increase is credited to the Statement of Financial Performance to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of land and buildings is charged as an expense in the Statement of Comprehensive Income to the extent that it exceeds the balance, if any, held in the asset revaluation reserve relating to a previous revaluation of that class of asset. All other property, plant and equipment is recorded at cost less accumulated depreciation and any accumulated impairment losses. Land is not depreciated. Depreciation is charged using the following estimated useful lives (rates) on a straight line basis: Asset Class

Depreciation Rate

Buildings

2.0%

Computer Hardware

33.3%

Equipment

20.0%

Furniture and Fittings

10.0%

Motor Vehicles

10.0% to 20.0%

Intangible assets comprise computer software which is recorded at cost less accumulated amortisation and any accumulated impairment losses. Amortisation is charged on a straight line basis over the estimated useful life of three years. d. Impairment of Assets

At each balance date, the carrying amounts of tangible and intangible assets are reviewed 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 asset is estimated in order to determine the extent of the impairment loss (if any). The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

been determined had no impairment loss been recognised for the asset in prior years. Areversal of an impairment loss is recognised in the Statement of Financial Performance immediately, unless the relevant asset is carried at fair value, in which case the reversal ofthe impairment loss is treated as a revaluation increase. e. Income Tax

Red Cross and the Red Cross Foundation are exempt from income tax pursuant to sections CW 41 and CW 42 within the Income Tax Act 2007. f.

Members’ Funds

Funds comprise Accumulated Funds, Restricted Funds, Christchurch Reserve and the Asset Revaluation Reserve. Accumulated Funds are those received and used for those general purposes which are the responsibility of the National Board. Restricted Funds are funds that have been restricted by the donor or by the National Board as to their use. Christchurch Reserve represents the balance of funds held from the two earthquake appeals launched in September 2010 and February 2011. Asset Revaluation Reserve represents the accumulated revaluation increases in the fair value of land and buildings. g. Financial instruments

Financial instruments include financial assets (cash, receivables and investments) and financial liabilities (payables, provisions and unexpended special appeals). Financial instruments are initially recorded at fair value plus transaction costs except for those investments categorised as fair value through profit or loss which are initially recorded at fair value. Subsequent measurement of financial instruments is dependent upon the classification of the instruments. Financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. Financial assets are classified into the following specified categories: financial assets “at fair value through profit or loss”, 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. Investment financial assets are held for trading and therefore upon initial recognition are classified as fair value through profit or loss as these investments are managed and their performance is evaluated on a fair value basis. Receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at amortised cost, using the effective interest method less any impairment. All financial liabilities are initially measured at fair value, net of transaction costs and then at amortised cost using the effective interest method. h. Statement of Cash Flows

For the purpose of the statement of cash flow, cash includes cash on hand and cash held with banking institutions and any cash held with custodians. Operating activities are the principal revenue producing activities and other activities that are not investing or financing activities. Investing activities are the acquisition and disposal of investments, property, plant and equipment and intangibles.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised in the Statement of Financial Performance immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have

Goods and Services Tax (GST)

All balances are presented net of GST, except for receivables and payables which are presented inclusive of GST where appropriate. Comparative amounts

Comparative information has been reclassified, where necessary, to achieve consistency in disclosures with the current year.

NewÂ Zealand Red Cross Annual Report 2012

Notes to the Financial Statements For the year ended 30 June 2012 in thousands of dollars 2. Trading and Administration Activities

First Aid Training

Red Cross Shops

Management & Administration

New Zealand Red Cross & Red Cross Foundation 2012 2011

Services and goods sold Public donations Rents Grants processing support Interest and dividends Other income

6,270 -

5,784 9

223 2,822 598

12,054 223 2,822 607

10,647 297 214 674 2,499 (88)

Total Income

6,270

5,793

3,643

15,706

14,243

Personnel costs Trading purchases Property costs Other expenses Depreciation charge Amortisation charge Audit fees

3,408 510 182 1,142 95 -

1,212 783 1,208 633 136 -

2,541 587 2,410 565 136 76

7,161 1,293 1,977 4,185 796 136 76

6,606 1,256 1,792 4,192 722 176 58

Total Expenditure

5,337

3,972

6,315

15,624

14,802

933

1,821

(2,672)

First Aid Training

Red Cross Shops

Management & Administration

Services and goods sold Red Cross Foundation Public donations Rents Grants processing support Interest and dividends Other income

6,270 -

5,784 9

750 223 500 1,410 44

12,054 750 223 500 1,410 53

10,647 750 286 214 924 1,427 63

Total Income

6,270

5,793

2,927

14,990

14,311

Personnel costs Trading purchases Property costs Other expenses Depreciation charge Amortisation charge Audit fees

3,408 510 182 1,142 95 -

1,212 783 1,208 633 136 -

2,541 587 2,309 565 136 69

7,161 1,293 1,977 4,084 796 136 69

6,526 1,256 1,792 4,185 722 176 52

Total Expenditure

5,337

3,972

6,207

15,516

14,709

933

1,821

(3,280)

Income

Expenditure

Trading and Administration Activities Surplus/(Deficit)

(559)

New Zealand Red Cross Incorporated 2012 2011

Income

Expenditure

Trading and Administration Activities Surplus/(Deficit) There were no non-audit services provided by Deloitte during the year (2011: $4,000)

(526)

(398)

notes to the financial statements 3. Fundraising Activities

New Zealand Red Cross & Red Cross Foundation 2012 2011

New Zealand Red Cross Incorporated 2012 2011

Income

Public donations – Project partners – Annual appeal – Direct mail – Lottery – Other Special appeals – Public – New Zealand Government (disaster relief) – Interest New Zealand Government (delegate support) Contracts Legacies Other

6,256 535 1,352 158 2,058

4,985 1,417 193 2,035

6,256 535 1,352 158 2,044

4,985 1,417 193 2,035

17,145 500 1,888 1,000 1,290 4

103,754 7,184 231 1,000 917 1,511 6

17,145 500 1,888 1,000 1,278 4

103,754 7,184 231 1,000 917 1,511 6

Total Income

32,186

123,233

32,160

123,233

922 2,783

796 1,948

922 2,783

796 2,080

Expenditure

Personnel costs Other expenses Total Expenditure Fundraising Activities Surplus

3,705

2,744

3,705

2,876

28,481

120,489

28,455

120,357

4. New Zealand Government Grants for Disaster Relief

Philippines (floods) Pakistan (floods) Columbia (floods) Indonesia (volcanic eruption) Vietnam (floods) Sri Lanka (floods) Middle East/North African (civil unrest) International Disaster Relief Canterbury Earthquakes Total New Zealand Government Grants for Disaster Relief

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

2012 500 500 -

2011 500 134 200 250 100 1,000 2,184 5,000

2012 500 500 -

2011 500 134 200 250 100 1,000 2,184 5,000

500

7,184

500

7,184

NewÂ Zealand Red Cross Annual Report 2012

Notes to the Financial Statements For the year ended 30 June 2012 in thousands of dollars 5. Expenditure on Humanitarian Activities

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

Personnel costs Aid workers International disbursements Appeal activities International levies Other international projects Other expenses Depreciation charge

2012 3,160 1,689 1,258 10,425 257 1,740 347

2011 2,562 1,184 1,203 66,952 118 80 2,473 316

2012 3,160 1,689 1,258 10,425 257 1,740 347

2011 2,562 1,184 1,203 66,952 118 80 2,473 316

Total Expenditure on Humanitarian Activities

18,876

74,888

18,876

74,888

Expenditure on Humanitarian Activities comprises: Humanitarian law Disaster relief and development Emergency management Community activities

83 15,565 393 2,835

86 71,232 406 3,164

83 15,565 393 2,835

86 71,232 406 3,164

Total Expenditure on Humanitarian Activities

18,876

74,888

18,876

74,888

6. International Disbursements

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

2012

2011

2012

2011

140 200 107 150

100 60 177 6 95

140 200 107 150

100 60 177 6 95

100

84 60 40 23 49 25 43 33 296 8

79 90 40 18 40 (15) 41 67 184 121

84 60 40 23 49 25 43 33 296 8

79 90 40 18 40 (15) 41 67 184 121

International Federation of Red Cross and Red Crescent Societies

Afghanistan Disaster relief supplies Timor-Leste Pacific Vietnam International Committee of the Red Cross

South East Asia Pacific National Red Cross Societies

Cook Islands Red Cross Fiji Red Cross Kiribati Red Cross Society Solomon Islands Red Cross Society Tonga Red Cross Society Tuvalu Red Cross Society Vanuatu Red Cross Society Other Pacific Red Cross National Society support Pacific and other telecommunications development Regional warehouse Total International Disbursements

1,258

1,203

1,258

1,203

notes to the financial statements 6. International Disbursements (continued)

New Zealand Red Cross & Red Cross Foundation 2012 2011

New Zealand Red Cross Incorporated 2012 2011

International Disbursements comprises:

Health and first aid Disaster relief and development Emergency management Community activities Total Expenditure on Humanitarian Activities

748 181 304 25

547 266 405 (15)

1,258

1,203

748 181 304 25 1,258

547 266 405 (15) 1,203

These disbursements have been funded by donations from Red Cross regular givers and other public donations.

7. Surplus from ALL Activities

New Zealand Red Cross & Red Cross Foundation 2012 2011

New Zealand Red Cross Incorporated 2012 2011

Revenue

Trading activities Administration activities Fundraising activities

12,063 3,643 32,186

10,652 3,591 123,233

12,063 2,927 32,160

10,652 3,659 123,233

Total Revenue

47,892

137,476

47,150

137,544

Trading activities Administration activities Fundraising activities Humanitarian activities

9,309 6,315 3,705 18,876

8,634 6,168 2,744 74,888

9,309 6,207 3,705 18,876

8,634 6,075 2,876 74,888

Total Expenditure

38,205

92,434

38,097

92,473

9,687

45,042

9,053

45,071

Expenditure

Total Surplus from all Activities Trading and Administration

The majority of this revenue is generated by first aid and emergency care education, Red Cross Shops and income from investments. National Board members receive no remuneration for their governance services. Total remuneration received by the National Management Team (comprising the Chief Executive and eight direct reports) was $1,118,000 (2011; $1,054,000). Fundraising Activities

This revenue is received from fundraising and the New Zealand Government. This is applied to the humanitarian work of Red Cross. This increased substantially in the 2011 financial year as a result of public donations for the Canterbury earthquake appeals and has continued to a lesser extent in the 2012 financial year.

NewÂ Zealand Red Cross Annual Report 2012

Notes to the Financial Statements For the year ended 30 June 2012 in thousands of dollars 8. Restricted Funds

International appeals and development Local projects and developments Meals on Wheels activities Emergency response units/vehicles Specific purpose legacies Total Restricted Funds

New Zealand Red Cross & Red Cross Foundation 2012 2011 347 567 23 64 68 36 1,730 383

2,452

New Zealand Red Cross Incorporated 2012 2011 347 567 23 64 68 36 1,730 383

2,452

9. Christchurch Reserve

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

2012

2011

2012

2011

44,204

Public donations Interest income New Zealand and other Governments Specific purpose donations (including other Red Cross National Society support)

5,498 1,888 11,415

80,617 230 11,936 14,694

5,498 1,888 11,415

80,617 230 11,936 14,694

Total funds received

18,801

107,477

18,801

107,477

7,672 1,800 1,137

61,889 1,367 17 -

7,672 1,800 1,137

61,889 1,367 17 -

Total funds used

10,609

63,273

10,609

63,273

Total Christchurch Reserve

52,396

44,204

52,396

44,204

Opening balance Funds received

Funds used

Resident grants Response activities Recovery activities Capacity building

The Christchurch Reserve fund has been created in response to Red Crossâ&#x20AC;&#x2122; involvement in the Canterbury earthquake of September 2010 and Christchurch earthquake of February 2011. All funds donated by the New Zealand public are to assist affected people and communities. This includes the provision of goods, cash grants and other support. Funds will not be used for Red Cross administration costs, staff salaries or transport and accommodation of Red Cross staff and volunteers. Other Red Cross national societies launched appeals to raise money to support the initial response, long term recovery and strengthening disaster response capacity. All interest earned is reinvested into the Reserve. It is anticipated that due to the scale and continuing needs of the community that it may take in excess of five years to responsibly deliver aid and provide recovery services. Red Cross established an independent Commission made up of community leaders to oversee the disbursement of donations. Red Cross incurred additional costs of $668,000 (2011: $936,000) for the administration of the grant payment processes. These costs are included within Trading and Administration Activities. Funds from the Red Cross Foundation of $500,000 (2011: nil) were received which substantially covered this expenditure.

notes to the financial statements 10. Cash and Cash Equivalents

Cash and bank current deposits Bank term deposits

New Zealand Red Cross & Red Cross Foundation 2012 2011 11,807 16,664 51,601 37,145

New Zealand Red Cross Incorporated 2012 2011 11,292 12,322 47,089 37,145

Total Cash and Cash Equivalents

63,408

58,381

53,809

49,467

Bank deposits earn interest at rates ranging between 1.50% and 3.15% (2011; 2.00% and 3.15%). Term deposits are held on terms ranging from 14 days to 90 days with interest rates ranging from 3.90% to 5.28% (2011; 3.65% to 4.70%). 11. Trade and Other Receivables

New Zealand Red Cross & Red Cross Foundation 2012 2011 942 1,196 374 47 702 743

Trade receivables Accrued interest and dividends Other receivables and accruals Total Trade and Other Receivables

2,018

1,986

New Zealand Red Cross Incorporated 2012 2011 942 966 273 168 702 791 1,917

1,925

As at balance date, interest accrued and due from the Red Cross Foundation was $166,000 (2011: $168,000). 12. Investments

New Zealand Red Cross & Red Cross Foundation 2012 2011

New Zealand Red Cross Incorporated 2012 2011

Investments are categorised as:

Current Non-Current

3,944 29,586

6,349 29,792

5,823 15,612

7,997 13,755

Total Investments

33,530

36,141

21,435

21,752

Red Cross Foundation deposits Short term fixed interest Long term fixed interest Long term deposits Equity securities Other

3,806 16,888 1,366 11,332 138

6,211 17,258 525 12,009 138

21,297 138

21,614 138

Total Investments

33,530

36,141

21,435

21,752

Investments comprise:

Investments (other than Red Cross Foundation deposits) are measured at fair value which is derived from external quoted prices based upon the market bid price for the investment. Fair value changes in the value of investments of $2,081,000 (unrealised loss) (2011: $1,642,000 unrealised gain) have been recognised in the statement of financial performance.

New Zealand Red Cross & Red Cross Foundation 2012 2011

New Zealand Red Cross Incorporated 2012 2011

Red Cross Foundation Deposits

Opening deposits Withdrawals during the year Deposits during the year

21,614 109 (426)

21,695 1,156 (1,237)

Closing Red Cross Foundation Deposits

21,297

21,614

Red Cross Foundation deposits earn interest at rates ranging from 4.10% to 6.10% (2011: 3.00% to 7.50%) with total interest earned of $1,182,000 (2011: 1,281,000).

NewÂ Zealand Red Cross Annual Report 2012

Notes to the Financial Statements For the year ended 30 June 2012 in thousands of dollars 13. Property, Plant and Equipment

Opening net book value Additions Disposals Revaluation (decrease)/increase Depreciation charge

New Zealand Red Cross & Red Cross Foundation 2012 2011 23,275 21,600 2,183 1,191 (56) (82) (817) 1,604 (1,143) (1,038)

New Zealand Red Cross Incorporated 2012 2011 23,275 21,600 2,183 1,191 (56) (82) (817) 1,604 (1,143) (1,038)

Closing Net Book Value

23,442

23,275

23,442

23,275

Cost or Valuation 20,503 2,902 1,527 2,127 4,032 43

Accumulated Depreciation 1,031 2,168 1,307 1,074 2,112 -

Net Book Value 19,472 734 220 1,053 1,920 43

Depreciation Charge 189 270 125 166 393 -

Total Property, Plant and Equipment 2012

31,134

7,692

23,442

1,143

Land and buildings Equipment Computer hardware Furniture and fittings Motor vehicles

21,273 2,468 1,348 1,911 2,978

844 1,901 1,185 913 1,860

20,429 567 163 998 1,118

200 245 95 136 362

Total Property, Plant and Equipment 2011

29,978

6,703

23,275

1,038

Property, Plant and Equipment Comprises:

Land and buildings Equipment Computer hardware Furniture and fittings Motor vehicles Work in progress

The fair value of land and buildings is based of rolling cyclical valuations. The most recent valuations were carried out at 30 June 2011 by Telfer Young, registered valuers who are members of the Property Institute of New Zealand. The valuation, which conforms to New Zealand Valuation Standards, was arrived at in reference to market evidence of transaction prices and market rental yields for similar properties. 14. Intangible Assets

Opening net book value Additions Amortisation charge Closing Net Book Value

New Zealand Red Cross & Red Cross Foundation 2012 2011 634 771 12 39 (136) (176)

New Zealand Red Cross Incorporated 2012 2011 634 771 12 39 (136) (176)

510

634

510

634

Software

Cost 1,166

Accumulated Depreciation 656

Net Book Value 510

Amortisation Charge 136

Total Intangible Assets 2012

1,166

656

510

136

Software

1,154

520

634

176

Total Intangible Assets 2011

1,154

520

634

176

Intangible Assets Comprises:

notes to the financial statements 15. Non-Cancellable Operating Leases

Less than one year Between one and five years More than five years

New Zealand Red Cross & Red Cross Foundation 2012 2011 1,397 1,323 1,028 2,425 -

New Zealand Red Cross Incorporated 2012 2011 1,397 1,323 1,028 2,425 -

Total Non-Cancellable Operating Leases

2,425

3,748

16. Capital Commitments

There are no capital commitments for future capital expenditure resulting from contracts entered into prior to or at balance date (2011: nil).

17. Trade and Other Payables

Trade payables Accruals Licenses to occupy

New Zealand Red Cross & Red Cross Foundation 2012 2011 2,060 1,028 426 539 24 24

New Zealand Red Cross Incorporated 2012 2011 2,060 891 411 539 24 24

Total Trade and Other Payables

2,510

2,495

1,591

1,454

18. Provision for Employee Entitlements

Annual leave Payroll and other entitlements Total Provision for Employee Entitlements

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

2012 590 229

2011 570 182

2012 590 229

2011 570 182

819

752

819

752

NewÂ Zealand Red Cross Annual Report 2012

Notes to the Financial Statements For the year ended 30 June 2012 in thousands of dollars 19. Net Assets

New Zealand Red Cross & Red Cross Foundation 2012 2011

New Zealand Red Cross Incorporated 2012 2011

Loans and Receivables

Cash and cash equivalents Trade and other receivables Investments

63,408 2,018 -

53,809 1,986 -

58,381 1,917 21,435

49,467 1,925 21,752

Total Loans and Receivables

65,426

55,795

81,733

73,144

Fair Value through Comprehensive Income

Investments

33,530

36,141

Total Fair Value through Comprehensive Income

33,530

36,141

Total Financial Assets

98,956

91,936

81,733

73,144

Non-financial assets

24,691

24,956

24,691

24,956

123,647

116,892

106,424

98,100

Trade and other payables Provisions

2,510 2,958

1,591 4,048

2,495 2,958

1,454 4,048

Total Amortised Cost

5,468

5,639

5,453

5,502

Total Financial Liabilities

5,468

5,639

5,453

5,502

413

276

413

276

5,881

5,915

5,866

5,778

117,766

110,977

100,558

92,322

Total Assets Amortised Cost

Non-financial liabilities Total Liabilities Net Assets

20. Contingencies

There are no contingencies at balance date (2011: nil). 21. Significant Events After Balance Date

There are no significant events after balance date (2011: nil).

auditorâ&#x20AC;&#x2122;s report

Auditorâ&#x20AC;&#x2122;s Report

New Zealand Red Cross Annual Report 2012

National Directory New Zealand Red Cross is part of the world’s largest humanitarian network. It is an independent humanitarian organisation, founded in 1863, and based on the Fundamental Principles of the International Red Cross and Red Crescent Movement of humanity, impartiality, neutrality, independence, voluntary service, unity and universality. New Zealand Red Cross operates in a neutral and impartial manner, independent of religious, cultural, or political affiliations. As at 30 June 2012

Officials

Patron

International Humanitarian Law Consultant Rt Hon Justice Sir Kenneth Keith, ONZ, KBE

His Excellency Lieutenant General The Right Honourable Sir Jerry Mataparae GNZM, QSO, Governor-General of New Zealand

New Zealand Red Cross Foundation Trustees

National Board National President Penny Mason National Vice-President Paul Steere Debby Butler Mat Darling, youth representative (appointed March 2012) Paul Kiesanowski Jennifer McMahon Aaron Turner Steve Osborne Alan Webb Brie Jessen, youth representative (resigned March 2012)

Counsellors of Honour Terry Butt Joan Cockburn, CBE, JP Nancy Cook Pat Gribble, QSM, JP Lynette Jones, CNZM Jocelyn, Lady Keith, CBE Rt Hon Justice Sir Kenneth Keith, ONZ, KBE Dr Ron Mackenzie, QSO Gerald McDouall, OBE, JP

Kerry Nolan Patricia O’Brien, QSO Jane Smith Sydney Smith John Stevens Jerry Talbot Paul Watson Rev Gavin Yates Peter Young

Christopher Batten (Executive Trustee) Peter Allport Falcon Clouston Alan Isaac (retired February 2012) Peter Martin Belinda Stanley

Paul Steere Mark Weaver Steven Fyfe (appointed July 2011) Rueben Tucker (appointed April 2012) Paul Kiesanowski (appointed July 2011)

Management Chief Executive, John Ware National Retail Manager, Patrick Cummings National Business Services Manager, Bruce Jones International Operations and Emergencies Manager, Andrew McKie National Fundraising Manager, Alice Montague National Operations Manager, Wendy Potter National Education and Training Manager, Graham Wrigley National Marketing and Public Relations Manager Ross Cameron National Human Resources and Volunteer Support Manager Bruce McGregor

Bank ASB Bank Limited

Legal Adviser Burrowes and Company

Auditor Deloitte

National Office Red Cross House, 69 Molesworth Street P O Box 12 140, Thorndon, Wellington 6144, New Zealand Ph. 64 4 471 8250 | Fax. 64 4 471 8251 www.redcross.org.nz | national@redcross.org.nz