New Zealand Red Cross Annual Report 2010 by New Zealand Red Cross

ANNUAL REPORT 2010

New Zealand Red Cross helps people in need, whoever and wherever they are. Our aim is to prevent and alleviate suffering, thereby enhancing human dignity. We focus on areas where we can make a real difference, responding to disasters, conflicts and vulnerability at home and overseas. Our reach is global, through a network of 185 other National Red Cross and Red Crescent Societies. Across the globe, millions of members and volunteers work in their own communities to enhance resilience to adversity and to respond when crisis strikes. Our volunteers, members and staff make a real difference every day. This is how New Zealand Red Cross is mobilising the power of humanity at home and around the world.

Red Cross physical rehabilitation centres, such as this one in Jammu in India, help people recover from landmine injuries.

ISSN 1178-6523

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

WHAT WE’VE ACHIEVED AT HOME AND OVERSEAS In 2009/2010, New Zealand Red Cross marked several historic milestones. We initiated governance changes to rejuvenate our membership and allow us to make even more of a difference in people’s lives.

28% INCREASE

285,000

11,000

BREAKFASTS SERVED

PATIENTS KIDS TAUGHT TRANSPORTED FIRST AID

TEAMS TRAINED TO HELP

BREAKFAST IN SCHOOLS

COMMUNITY TRANSPORT

EMERGENCY MANAGEMENT

21% INCREASE

PEOPLE SAVERS

67,583

697,000

$million 8.7

HOT MEALS DELIVERED

NUMBER OF SHOPS

COURSE RAISED FOR PARTICIPANTS EMERGENCIES

MEALS ON WHEELS

RED CROSS SHOPS

FIRST AID

SPECIAL APPEALS

1,080

257,000 $847,000

AID WORKERS SENT OVERSEAS

VULNERABLE PEOPLE ASSISTED

AID WORKERS

INTERNATIONAL PROGRAMMES

SPENT ON PACIFIC DEVELOPMENT PROGRAMMES INTERNATIONAL AID

PEOPLE TRAINED

INTERNATIONAL HUMANITARIAN LAW

In 2010, we also marked 50 years since we sent our first aid worker overseas. In spite of a tough external environment, many of our community programmes continued to expand during the year and donations actually increased. These changes – and the obvious strong support from donors, members and volunteers – promise to help New Zealand Red Cross become even stronger to meet the humanitarian challenges ahead.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

“There is nothing more rewarding than to receive the wonderful smile and shy thank you from a child eating breakfast before theIR school day starts.”

NATIONAL PRESIDENT’S REPORT New Zealand Red Cross is all about people – people helping people and working together to make a difference to humanity. One of the seven fundamental principles underlying the International Red Cross and Red Crescent Movement (the Movement) is “to have concern for all humanity” and the first part of New Zealand Red Cross’ mission statement is “to improve the lives of vulnerable people by mobilising the power of humanity”. New Zealand Red Cross is many things to many people – a hot meal, a safe drive to hospital, a nourishing breakfast, or the knowledge that our aid workers are helping overseas in true ‘kiwi’ style.

One of the most enjoyable aspects of my role as president is the connection I have with so many people, both the recipients of our help and care, and with the caring Red Cross family comprising the many volunteers, members and staff in New Zealand and abroad.

the Statutes Commission in Geneva. Our new Constitution was adopted unanimously at the New Zealand Red Cross Society’s National Council meeting in November 2009. This Constitution allows for the development and introduction of a new structure for membership and governance.

There is nothing more rewarding than to receive the wonderful smile and shy thank you from a child eating breakfast before their school day starts. I enjoy meeting the many long-serving branch members who serve New Zealand Red Cross with such passion and I am so grateful to one local member who regularly arrives on my doorstep with a cake, knowing I am too busy to bake for myself.

The new structure aims to reduce the large number of people in high-level governance by disestablishing the six regional boards, which occurred on 1 August 2010. Instead, there will be a similar number of people involved, but they will be in 16 smaller groups called area councils, strategically placed according to population as well as the need and potential for New Zealand Red Cross’ expanded activity. The area councillors’ roles will be to communicate, lead, inspire, coordinate and empower our valued members and volunteers.

New Zealand Red Cross has a particularly close association with all the Pacific Red Cross Societies and I enjoy meeting up with their governance people, their staff, and their volunteers, as well as their beneficiaries. During the 2009/2010 financial year, we worked together on the International Federation of Red Cross and Red Crescent Societies’ new strategic plan, Strategy 2020, and built a strong relationship with Pacific National Societies, which was helpful when we supported Samoa Red Cross Society after the tsunami in September 2009. It was an extraordinary experience for me to talk to a woman whose house had been totally destroyed on that fateful day, but whose family had survived. The first help they received was from Red Cross volunteers. Recognising that all New Zealand Red Cross people need to be valued, we initiated a transformation in our structure in 2009. The transformation’s basic purpose is to rejuvenate New Zealand Red Cross membership and to curb the closing of branches. Extensive consultation with members was followed by a new Constitution being drafted, which was approved by

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

We believe this change will help to strengthen our membership. This will, in turn, strengthen New Zealand Red Cross to meet the challenges of Strategy 2020, which urges us to do more, to do better and to reach further. The challenges that we need to manage as we go through the process of making the change are not small. However, we are proud of the progress we have made and are confident that the 2010/2011 financial year will demonstrate that we have taken the best step to build on the work of our forebears by having the courage to make change that is appropriate for the 21st century.

Penny mason National President

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

CHIEF EXECUTIVE’S REPORT The preparation of an annual report provides a timely opportunity to reflect on the last 12 months and consider the difference New Zealand Red Cross has made to people in New Zealand and overseas who need our help.

Real difference at home

Real difference overseas

Although Red Cross is often considered only an international aid organisation, our mission and mandate extends to improving the lives of vulnerable people here in New Zealand. We continue to expand our capacity to respond to emergencies, and during 2009/2010, we established seven new emergency management teams. Our national community programmes include both wellestablished services and new programmes. Often we are asked why it is necessary to provide community services in New Zealand where a welfare system and support agencies would be expected to support those in need. Sadly, New Zealand Red Cross vulnerability assessments show many people still miss out. People with particular needs include refugees, youth and the isolated, especially the elderly. We target these vulnerable groups through our national programmes including Meals on Wheels, Breakfast in Schools (which we’ve increased to 61 schools), hospital transport, refugee services, community first aid and our drug and alcohol peer education programme, Save-a-Mate.

Our international work involves helping people affected by emergencies or conflict. It also involves development assistance and helping communities become more resilient. Disasters, as we often say, don’t discriminate and can happen any time at any place.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

In September 2009, the tsunami in Samoa and Tonga resulted in lost lives, property and livelihoods. Overwhelming generosity from the New Zealand public and support from the New Zealand Government helped fund the international Red Cross’ immediate emergency response operation and a four-year programme that will help people recover from this disaster and be safer in the future. When Haiti was struck by an earthquake causing destruction and a huge loss of life in January 2010, New Zealanders’ hearts went out to those in need and we were able to support the response operation with funds and New Zealand Red Cross aid workers.

Trusted to make it happen After his experience on the battlefield in Solferino in 1859, Henry Dunant, the visionary behind Red Cross, proposed voluntary “relief societies for the purpose of having care given to the wounded in wartime”. Today, New Zealand Red Cross remains committed to helping people in need, whether because of conflict, disaster or for other reasons. Our assistance depends on the generosity of the New Zealand public, the support we receive from the New Zealand Government and the success of our shops and first aid courses. New Zealand Red Cross generated total income in the 12 months leading up to June 2010 of $32 million. After our expenditure, funding available for programmes and emergency operations was $16.8 million, which exceeded the 2008/2009 financial year record of $13.4 million. We receive many regular donations and one-off gifts for ‘special appeals’ for particular emergencies. We also gratefully acknowledge the generous support of a number of trusts and corporate supporters. Donors trust New Zealand Red Cross to make a difference; they feel an affinity with our values, principles and integrity, and they rely on us to keep costs to a minimum. We value that trust and honour the responsibility it places on us. I would like to acknowledge the contribution of volunteers and the hard work and dedication of all our staff. Together we can look back with satisfaction that we have made a real difference in the world.

“We will tackle the major challenges confronting us in the next decade and will be doing more, doing better and reaching further to ensure the services we provide remain relevant in a changing world.” provide remain relevant in a changing world. We face many adverse trends including climate change, environmental degradation, urbanisation, violence, forced migration, new and emerging diseases, and insecurity of food, water and natural resources. We will emphasise disaster preparedness to empower communities to become more resilient to future shocks and crises. In order to respond effectively, we will continue to build a stronger New Zealand Red Cross. Our recently completed transformation of governance structures will help enable this. We will ensure well-informed representation in key forums and vigorously promote our work, founded on good evidence and targeted communications, to foster strong cooperation with governments, youth, academia, the private sector and the people we serve.

Looking ahead As New Zealand Red Cross enters a new decade, we will set a new strategic direction guided by the recently released International Federation of Red Cross and Red Crescent Societies’ Strategy 2020. We will tackle the major challenges confronting us in the next decade and will be doing more, doing better and reaching further to ensure the services we

john ware Chief Executive

The International Red Cross and Red Crescent Movement offers much in the field of international aid. We are truly international with member societies in 186 countries. We operate at a community level in every country so we can provide assistance where it is needed. Red Cross has been helping people affected by emergencies for over 150 years. We have the knowledge and ability to respond effectively and quickly. Our neutrality, impartiality and absence of religious affiliation means our assistance is welcomed globally.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

REAL PEOPLE IN ACTION Red Cross people make a difference right here in New Zealand communities. These are some faces of New Zealanders who are working in real places helping New Zealanders who face real issues every day.

KAY REID MEALS ON WHEELS DRIVER

Kay regularly delivers Meals on Wheels to housebound people. The delivery ensures New Zealanders like Pauline Fannin, who can’t get out, eat a nutritious meal and see a friendly face.

SANTINO DENG REFUGEE COMMUNITY GARDEN FACILITATOR

Conflict and disaster separate people worldwide. Community gardens bring people together and help motivate and engage those who might otherwise be isolated in a new country.

“I did a bit of research and found that the Red Cross fitted with my values and belief systems.” Brigid Reilly, volunteer, Red Cross shop.

GOOD MORNIING STUDENTS AT MEREMERE SCHOOL

MIKEY PRYCE AUCKLAND RETAIL VOLUNTEER

The Breakfast in Schools programme helps children like this pair at Meremere School start the school learning day in a positive way with a healthy breakfast.

Mikey, left, is one of 20,000 Red Cross volunteers who donate their time to their communities. He combines his love of fashion with a good cause. STREET APPEAL VOLUNTEER COLLECTORS

School classes and work places give something back by helping Red Cross raise funds during our annual street appeal.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

GOVERNANCE The National Council remains the highest governing authority and may exercise all the powers conferred on New Zealand Red Cross. It meets at least once every year and from 2010 will comprise the patron, who is currently The Right Honourable Sir Anand Satyanand (the Governor-General), the National President and National Board, two youth representatives, counsellors of honour, two representatives from each area council and a representative from the New Zealand Government who has speaking rights only.

National Board back row:

Paul Hawke, Ian McPherson, Paul Steere, Ralph La Salle, Alan Webb. Front row: John Evans (Vice President), Brie Jessen (Youth Rep), Penny Mason (President), Margaret Millard (National Treasurer), John Ware (Chief Executive).

NATIONAL SOCIETIES

INTERNATIONAL MOVEMENT

186

In separate photo: Allison Craw.

Below: Red Cross helps people stay safe when disaster strikes.

NEW ZEALAND

RED CROSS

16 100 159 AREAS

BRANCHES

FULL TIME STAFF

4,000 20,000

MEMBERS VOLUNTEERS

The National Board controls New Zealand Red Cross. It has been mandated to implement the policies of the National Council and to carry out the objectives of New Zealand Red Cross within the framework of these policies and to ensure the operational efficiency of New Zealand Red Cross. Its composition and some election procedures will change in future to reflect the new area councils. The National Board is sad to have lost one of its youngest board members, Jennifer Clark, who came from Auckland. She passed away in June 2010 after a battle with cancer and her large contribution was greatly missed after her resignation earlier in the year. We also record with sadness the death of John Wilson, who was involved with New Zealand Red Cross

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

for more than 50 years. He served on the Hutt Valley and Wellington branches, and was elected to New Zealand Red Cross Society’s national executive and to its highest office, that of National President. During 2009/2010, New Zealand Red Cross developed a board charter that outlines how the National Board guides, governs, sustains, protects and develops New Zealand Red Cross in accordance with its goals. It also provides the terms of reference for the National Board, its roles, its conduct and its tasks. This board charter will be part of a comprehensive induction for new board members after the National Council meeting in November 2010.

New constitution

Members and branches

The 2009/2010 year was one of transition as we moved to a new Constitution, with the most dramatic changes in many years. Under the changes, six regions have been replaced by 16 area councils, each with elected and appointed community representatives.

In 2009/2010, for the first time, members of New Zealand Red Cross are no longer required to join a branch or group. This new flexibility means that every member (rather than only branches) may participate in the democratic process of New Zealand Red Cross by individually nominating and voting for branch and area officers, and nominating and voting for the National Board.

In consultation with members, a new members’ handbook has been completed containing comprehensive information and guidance for members. Another new feature is a code of conduct to guide members in abiding by the Fundamental Principles of the International Red Cross and Red Crescent Movement.

These changes will help all members contribute more to setting New Zealand Red Cross’ strategic direction. In deciding future priorities, our framework will be the strategic aims of the International Federation of Red Cross and Red Crescent Societies’ Strategy 2020. We are confident that by listening to our membership, we will be able to position New Zealand Red Cross to make even more of a difference to people in need at home and overseas. NEW ZEALAND RED CROSS ANNUAL REPORT 2010

INTERNATIONAL

INTERNATIONAL HUMANITARIAN LAW New Zealand Red Cross, just like the other 185 National Red Cross and Red Crescent Societies around the world, has a responsibility to disseminate knowledge and understanding of international humanitarian law within New Zealand.

International humanitarian law (IHL), or the law of armed conflict and the laws of war, sets out rules to limit, for humanitarian reasons, the effects of armed conflict. It protects people who are not or no longer participating in hostilities and seeks to restrict the means and methods of warfare. The implementation of IHL has been a primary objective of the International Red Cross and Red Crescent Movement (the Movement) since the very early days, due to the International Committee of the Red Cross’ (ICRC’s) specific role and mandate in this area. National Red Cross or Red Crescent Societies have an important role to play due to their auxiliary status in conjunction with their governments, to ensure respect for IHL and protection of the emblems (red cross, red crescent and red crystal) of the Movement. 12

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

Restoring Family Links New Zealand Red Cross continues to reunite families separated by conflict or disaster through our Restoring Family Links programme. Inquiries during the year included three families split up by the Second World War in Poland and Russia. More usual cases involve New Zealand Red Cross tracing refugees’ families, often after many years of no contact. One told us: “I would like to take a moment to appreciate all the help you have given me, which I am forever grateful for. I would like to inform you that my family has called me, and I am so happy because after five years I have found them. All of that is because of you. I will be forever indebted to you. Thanks again for everything.”

Reporting Wars

War Law

In May 2010, New Zealand Red Cross and AUT University launched an edition of the Pacific Journalism Review devoted to reporting wars. This built on the Reporting Wars conference New Zealand Red Cross hosted in early 2009. The keynote speaker was the Australian Center of Independent Journalism’s Tony Maniaty, while a panel consisting of ICRC, New Zealand Red Cross, and journalists – Cameron Bennett, Mike McRoberts and Jon Stephenson – discussed the protection of journalists in conflict zones. The event was highly popular, with students, lawyers, journalists and others crammed into the lecture room.

Thirty students from Wellington high schools attended ‘War Law’, a successful one-day workshop on international humanitarian law hosted by New Zealand Red Cross and the Centre for Strategic Studies at Victoria University in August 2009. The event coincided with the 60th anniversary of the adoption of the Geneva Conventions of 1949. Participant Iain Latham-Prokopowicz said he was particularly impressed by a mock minefield set up by a New Zealand Army mine action expert. “I didn’t realise how painstakingly slow mine removal was – and it is alarming to know that so many remain undetonated,” said the student. “It was interesting to learn how broadly New Zealand Red Cross operates in the world.”

Opposite page: A Somali Red Crescent Society volunteer makes someone’s day by delivering a Red Cross message from a missing family member. Top left: At Trentham Military Camp, New Zealand Red Cross Policy and Advocacy Manager Fran Albertario trains soldiers in the laws of war.

Bottom left: Satellite phones help connect people displaced by conflict or disaster. Right: Cambodians learn more about Red Cross and international humanitarian law, which aims to prevent or at least limit the excesses of war.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

INTERNATIONAL

INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS When disaster strikes, it is vital to re-open lines of communication as soon as possible so the right aid can be given to people in need. This is especially important in the Pacific, a region facing annual cyclones in sparsely populated islands across a huge region.

In response, New Zealand Red Cross has pioneered unique systems that are both simple to use and sophisticated enough to overcome the inevitable challenges that disasters bring. An essential element of their success is training specialists to use the equipment. New Zealand Red Cross has pre-positioned standardised communications equipment, such as solar-powered satellite phones, in 11 Pacific countries and Timor-Leste, and trained National Society colleagues to use and maintain it. We continued to develop the skills of staff and members of an information technology and telecommunications Emergency Response Unit, who, in 2009/2010, visited Austria, Fiji, Finland, Malaysia, New Caledonia, Papua New Guinea, Singapore, Sweden, Tokelau, Tonga and Vanuatu for training. 14

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

We also continued to position New Zealand Red Cross as a regional and global leader in emergency communications by running a training exercise called KiwiEx 2010 for experts from National Societies in Austria, the Cook Islands, New Zealand and New Caledonia. This exercise, in a remote location, required participants to apply classroom lessons in the field and overcome challenges such as defective equipment, border guards, guerrillas, thieves and flat tyres. In addition, New Zealand Red Cross ran a two-week course for participants from the Cook Islands, Malaysia and Austria.

“Red Cross were the first people here. I asked them to send someone up here to help me. That same day, they brought us clothes, food, bottles of water and a tent. It was so nice to see the Red Cross, to know that somebody cared.” Letiu Lee

tsunami operation in Samoa in 2009 before normal means of communication were re-established. Plans for the future include expanding the Emergency Response Unit from 23 to 30 members, maximising opportunities to train and be trained, and continuing to develop world-class communications tools that are adopted as the international Red Cross standard.

Tuvalu Red Cross Society Disaster Management Officer Tataua Pese trains people in contacting the outside world when disaster strikes. New Zealand Red Cross has pre-positioned this life-saving communications equipment in 11 Pacific countries.

The equipment and training was put to good use in disaster response operations in the Solomon Islands and Samoa. A “talking suitcase”, with satellite phone, solar-powered laptop and other equipment, was used in the initial days of the NEW ZEALAND RED CROSS ANNUAL REPORT 2010

INTERNATIONAL

international programmes In 2010, New Zealand Red Cross marked 50 years of sending specialist aid workers to help in conflicts, disasters and emergencies around the world. The aid worker programme began in 1960, when New Zealand Red Cross physiotherapist Barbara Tomlinson travelled to Morocco to assist people paralysed after eating tainted cooking oil.

In Haiti, the Red Cross helped Junior Joseph Marc build his own hurricane-proof shelter. “I didn’t know anything about construction before working on this house. I worked as an apprentice and was able to learn from some experienced carpenters. This is the first time I have my own house, a place I can call home.” Junior Joseph Marc

2 7.0 ON 12 JANUARY 2010 A MAGNITUDE

EARTHQUAKE HIT HAITI

MILLION PEOPLE DISPLACED

NEW ZEALANDERS GENEROUSLY CONTRIBUTED

$1.5 In 2009/2010, the pool of available aid workers increased from 100 to almost 120 people with expertise in health, organisational development, construction, logistics, water and sanitation, and information technology and telecommunications. New Zealand Red Cross hosted its annual week-long training course in September 2009. This course attracted a significant number of high-quality applicants from a wide range of skilled people across New Zealand. New Zealand Red Cross sent 51 aid workers on 41 different missions to help people in 24 countries including Afghanistan, China, Iraq, Jordan, Pakistan, Papua New Guinea, Samoa, Somalia and Timor-Leste in 2009/2010. Their skills included health, water and sanitation, security, logistics and administration. The aid worker programme is highly regarded

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

internationally; Kiwi aid workers’ versatility and ‘can do’ attitude is admired throughout the Red Cross. In September 2009, New Zealand Red Cross went to the aid of Samoa and Tonga, which were rocked by earthquakes and a tsunami. Aid workers specialising in field assessment and coordination, logistics, water and sanitation, and communications worked alongside National Red Cross Society colleagues to distribute food, water and shelter materials in the days after the disaster. In January 2010, Haiti was struck by an earthquake that killed more than 225,000 people. New Zealand Red Cross aid worker, Kevin Duignan, travelled to Haiti for a six-month mission to help with shelter, which was especially vital before the June to November hurricane season.

In early 2010, when three destructive cyclones tore through Tonga, the Cook Islands and Fiji, New Zealand Red Cross supported Pacific National Red Cross Societies with funds, relief items and specialists.

Left: After the Haiti earthquake, a girl waiting for an operation plays with a toy given by Red Cross.

The nature of humanitarian work means New Zealand Red Cross aid workers need to be prepared and adaptable to changing environments. An example is Niall Shepherd, who, though based in Sri Lanka working in security, was sent to Bangkok, Thailand, to help cover security requirements during protests in May 2010.

Top right: “Our earth and timber house fell down after the earthquake. The Red Cross delivered water, vegetables, rice, mosquito nets, quilts and very quickly. My ideal future would be to leave my hometown to make money for my parents,” says Tang, 11, who entered a Red Cross

New Zealand Red Cross’ aid worker programme is funded by generous donations from Red Cross supporters and the New Zealand Government’s Aid Programme. We remain grateful for this ongoing support.

million

which went towards health professionals, blankets, water containers, family tents, tarps and kitchen sets to

help these people.

photo competition after the Sichuan earthquake in China. Bottom right: New Zealand Red Cross aid worker Victoria Fray helps safe drinking water reach people who moved inland after the tsunami in Samoa.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

INTERNATIONAL

AID WORKER PROGRAMME 1 Georgia Joyce Hood Health 2 Iraq Janet Askew Health Louise King Health Joyce Hood Health Guru Dev Singh Health Gail Corbett Health Andrew Cameron Health

5 Pakistan Lindah Jury Health Barbara Turnbull Health Louise Humphreys Health Daniel Cowley Economic Security Judy Owen Health Simin Alipour Health

3 United Arab Emirates Nicholas Murdoch Logistics 4 Afghanistan Rachael Maunsell Health

Judy Gilmore Health Wendy Stuart Health

13 INDONESIA Jodye Tomalin Security

12 south east asia region Jane Edgar Water and Sanitation Malcolm McKinley Organisational Development Alan Bradbury Disaster Management

14 china Warwick Inder Organisational Development 15 PHILIPPINES David Easson Economic Security Louisa Akavi Health

24 Haiti

4 3

8 7

22 Samoa Victoria Fray Water and Sanitation Rosemarie North Communications Douglas Clark Monitoring and Evaluation Dean Manderson Logistics

12 9

11 16

16 Asia/pacific zone Melanie Ogle Reporting Delegate Jeremy Francis Logistics

6 jordan Jodye Tomalin Security 7 Ethiopia Greer Lees Water and Sanitation 8 Yemen Andrew Cameron Health Daniel Cowley Economic Security 9 Somalia Felicity Gapes Health 10 Kyrgyzstan Grant Hargreaves Logistics 11 Sri Lanka Niall Shepherd Security 18

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

17 Timor-Leste Amanda Scothern Organisational Development Anna Maree Delaney Health Rosemary Fenton Health 18 Papua New Guinea Nicola O’Connor Emergency Response Unit Michael Carson Emergency Response Unit 19 Solomon Islands Matthew Poole Emergency Response Unit Rex Aubrey Emergency Response Unit

22 20

Kevin Duignan Shelter Denise Oakenfull Security 24

23 Cook Islands Clare Shave Finance Kevin Duignan Shelter

20 PACIFIC REGION Rosemary Fenton Health Douglas Clark Monitoring and Evaluation Peter Winthrop First Aid 21 tonga Douglas Clark Monitoring and Evaluation Carl Burr Emergency Response Unit Nicola O’Connor Emergency Response Unit NEW ZEALAND RED CROSS ANNUAL REPORT 2010

National Programmes “We have had some children who’ve come to school hungry and so this is an opportunity for them to have breakfast. It means that when they start the school learning day they start in a positive way because they’ve already had their breakfast and they’re ready to start learning.” Heather Green – Principal, Meremere School

Hospital and community transport This programme gives people who cannot access or afford transport to hospital the ability to keep appointments for treatment, thus improving their quality of life. Dora Riepan, 84, found travelling to medical appointments a burden. Discovering the free Kapiti Community and Health Transport shuttle made her life easier and removed the stress of trying to organise getting to the hospital. ‘They come right to my door to pick me up, wait at the hospital until I’m done and then take me home again all for free.” Dora Riepan.

The number of patients transported increased by 28 percent in 2009/2010, with the introduction of three new services in Nelson, Dunedin and Central Hawke’s Bay and the expansion of the successful eastern Southland service. Breakfast in Schools

The programme continues to provide a healthy and nourishing start for children in low-decile schools who would otherwise not get breakfast. The programme is volunteer driven, and some innovative strategies have been developed by area staff to overcome the challenge of providing sufficient volunteers. For example, 25 staff at a hospital volunteer five days a week on a roster to serve breakfast at two Porirua schools.

BREAKFAST IN SCHOOLS

COMMUNITY TRANSPORT

BREAKFASTS

PATIENTS

TRANSPORTED 13,400 12,460 11,500 10,059 7,874

2009 2010 2011 2012 213,939 285,000 300,000 300,000

2013 2012 2011 2010 2009

2013 300,000

BREAKFAST IN SCHOOLS

SCHOOLS

2009 46

“It is excellent to have that hot meal in the middle of the day, especially in the winter time. And to know that I don’t have to, with my legs the way they are, walk backwards and forwards to make a meal. They’re already prepared … and they are delicious.” Pauline Fannin, Meals on Wheels recipient, Auckland

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

COMMUNITY SERVICES Meals on Wheels

Meals on Wheels has been changing with a tightening up of eligibility and the availability of commercial options at competitive rates. This has meant a steady decline in the number of meals delivered each year, and this trend is predicted to continue. However, it remains an important part of New Zealand Red Cross’ community service to deliver a hot meal with a friendly face to the housebound and elderly.

2010 61

Left: Children at Meremere School in the Waikato region of New Zealand eat wheat biscuits with milk, and toast with spreads and drink a warm chocolate drink five mornings a week before school. Meremere School is one of 61 schools in the programme, which is targeted at children who live in crowded households with low income, less educated parents in low skilled occupational groups, and/or receive government income support. These children are likely to go to school without breakfast, which means they are less able to concentrate and learn.

2011 67

2012 67

2013 67

Top right: Volunteer driver Jo Starkey delivers a hot midday meal to John Fowler in Christchurch. New Zealand Red Cross Meals on Wheels delivered 697,000 meals this year, mostly through a contract with the health authorities, to people who are older or housebound. Bottom right: Max Clark, a volunteer community transport driver from Nelson assists 88-year-old Iris Inns from the Red Cross van.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

Top left: At the Mangere Refugee Centre, a former refugee joins a working party where newcomers learn about gardening in New Zealand. The garden also helps combat the isolation often felt by new migrants.

Gardening for health

At the Mangere Refugee Resettlement Centre, a group of young volunteers, many former refugees, pass on their skills and knowledge about gardening in the New Zealand environment to the new arrivals. The ‘gardening for health’ project has a focus on planting and growing vegetables, but it also offers a sense of empowerment through working towards self-sufficiency and ‘laying down roots’. The project has been incorporated into the health programme at the centre and is part of the district health board’s Let’s Beat Diabetes programme.

Below: New Zealand Red Cross response team members practice rescuing injured people.

Bottom left: In a People Savers course, a pupil at Kaurilands School in Auckland learns basic first aid that could save a life.

PARTICIPANTS

2013

20,900

2012

2011

2010

2009

18,590

YOUTH

16,000

KIDS TAUGHT

10,973

SAVE-A-MATE

9,766

PEOPLE SAVERS

EMERGENCY MANAGEMENT

TEAMS

2011 600

2013 960 2012 720

2009 2010 1 88

2009 14 2010 21

EMERGENCY MANAGEMENT Two new response teams were established in Porirua and Greymouth, and a mobile welfare team in Wairoa. At a 36-hour exercise at an oil industry site in Opunake, a group of 54 North Island team members were trained by New Zealand Red Cross in casualty handling, light rescue, first aid and welfare skills. In May 2010, the Nelson and Timaru teams responded to floods by providing support to evacuees; in June 2010, the Rotorua welfare team assisted over 100 people evacuated from flooded homes in Whakatane. Intensive training during 2009/2010 helped more than 40 Red Cross response team members from across the country

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

respond quickly and effectively, in coordination with other agencies, when a 7.1 earthquake hit Canterbury in September 2010.

YOUTH Save-a-Mate

The design of this drug and alcohol peer education programme was completed in November 2009 to meet a proven community need. There are now three Save-a-Mate trainers in Wellington and Auckland delivering courses. A total of eight courses were held for 88 participants in 2009/2010. Courses are planned in 10 locations during 2010/2011. Preparing youth for emergency

Youth Emergency Preparedness (YEP) was delivered again in Dunedin by response team members, while the national

programmes team used this experience to develop tools for its delivery in other areas. Plans are under way for the programme to be run in Whanganui and Invercargill. People Savers

This free, four or five-hour course introduces children to first aid and how to react in emergency situations. Designed for 8 to 12-year-olds, People Savers covers topics such as dangers, how to call for help and treatment for choking. It is popular with participants – but best of all it saves lives. Plans are under way to expand the programme.

LOOKING FORWARD Our community programmes team will undertake community vulnerability assessment studies in all areas, identifying gaps in services. These studies will commence in 2010/2011 in

2011 37 2012 41

2013 41

Northland, Gisborne, Bay of Plenty and Canterbury. For example, research predicts the growth in community transport to continue, and we expect to expand this service into three or four communities a year over the next 10 years. Our emergency management officers continue to provide support to area managers and their teams, and work to develop consistent national standards. We plan to establish more response and welfare teams to build our capacity. By 2020, New Zealand Red Cross plans to be the lead agency for the training and mobilisation of volunteers in an emergency, with several thousand trained volunteers covering the country. This will contribute towards fulfilling our organisational mission of building community resilience.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

HUMAN RESOURCES AND VOLUNTEERS “My family can relax; they know I am taken care of. I don’t have to worry about tickets. It’s peace of mind for my family and it’s peace of mind for me.”

In September 2009, New Zealand Red Cross completed our first staff satisfaction survey. The information we gathered encouraged us to improve our internal communications and look at how we develop our people to be leaders in New Zealand Red Cross.

Rachel Wong

This page: Volunteer driver Brian Lahman takes Rachel Wong and other people from their homes on the Kapiti Coast to Wellington Hospital for appointments. Opposite page top: Volunteers share a laugh as they prepare breakfast at Corinna School in Porirua.

Opposite page bottom left: Red Cross volunteer Tai Poon steam-irons clothes at the Karangahape Road shop in Auckland. Opposite page bottom right: Students sing while helping Red Cross raise funds during our annual street appeal.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

Two important projects were completed during the 2009/2010 financial year:

Staff induction Induction is a process for making new staff feel welcome, help them adjust quickly to their new position, ensure they have the right tools and support, and establishes good communication and positive relationships. The innovative programme provides hiring managers with guidelines to ensure that new staff have all the support they need during their first three months on the job. The programme is driven by the new staff member and gives them knowledge and understanding of New Zealand Red Cross. We have made use of both paper based tools and online learning on our intranet.

We have also used the staff induction framework to develop induction for members and volunteers, so we are communicating the same information consistently to our New Zealand Red Cross family members.

Volunteer management We have added volunteer management tools to the New Zealand Red Cross intranet. These resources support our new approach to volunteer recognition. New Zealand Red Cross volunteer and programme managers from around the country contributed and shared their best practice resources, tools, templates and guidelines. These resources were made available to all staff.

Our aim with both of these projects is to ensure New Zealand Red Cross is recognised as a great place to work and volunteer in New Zealand. Working closely with our marketing and communications team, a campaign during national volunteer awareness week in June 2010 reinforced this message. For 2010/2011, we plan a number of initiatives to build strong capability and leadership within the New Zealand Red Cross family and programmes to support staff members and volunteers develop and grow in their roles.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

first aid

The 2009/2010 year was a challenging period for the first aid training industry following government changes that created an unregulated environment that allowed companies to introduce shorter courses and lower-quality training. New Zealand Red Cross decided to retain the quality level and curriculum of the existing courses delivered in the same traditional timeframes. This resulted in a loss of some bookings, which was to be expected in the current economic climate. We trained 67,583 participant numbers in 2009/2010. However, looking ahead, the redesigned unit standards and New Zealand Qualifications Authority training requirements due for release in late 2010 position us well for the future. In February 2010, we implemented XRM, our new state-of-theart client database and course management system. For the first time, we have the ability to review first aid training nationally and to streamline the course booking, management and accounting processes. Although developed specifically for first aid training, the system has also been designed to be applicable to other aspects of New Zealand Red Cross. We opened a new training venue in Queenstown in September 2009, and new training rooms in Greymouth in May 2010. Both locations already had training staff, but relied on hired venues to run courses. Both have been set up to national standards that include ceiling-mounted projectors, comfortable chairs and well-designed teaching environments. We have also upgraded 15 other locations with ceiling-mounted projectors, so that courses can be taught in line with the national curriculum’s standards by DVD. The aim is to deliver high quality courses that give our customers confidence to provide first aid in an emergency when called on. Our course instructors are an invaluable resource to New Zealand Red Cross. During 2009/2010, we upgraded their uniform to project a professional and relaxed culture in our courses. Using the colours of Red Cross, the new national uniform is comfortable and yet clearly brands our instructors as a part of New Zealand Red Cross. Sales of first aid kits and automated external defibrillators (AEDs) were steady during the year. It was great to record several occasions where lives had been saved or serious injuries minimised by our training and by the use of our products.

the future In the future, all of our courses will be redeveloped and rebranded to ensure alignment with national standards and market competition. Online learning will also be introduced to cover some aspects of training to complement the traditional face-to-face training, scenarios and assessments.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

RED CROSS SHOPS

Top: Instructor Izaak Bates takes participants at an Auckland course through a basic first aid course. New Zealand Red Cross trains nearly 68,000 adults a year in first aid. Bottom: At Kilbirnie Red Cross shop in Wellington, Manager Janice MacFarlane, right, chats to a customer.

The 2009/2010 financial year has been an exciting time for New Zealand Red Cross shops, as we have expanded across the country and generated an income of almost $4 million.

Our retail model Our retail model has included expanding into larger stores and revamping some of our older shops. We opened new-look stores in Auckland (Karangahape Road), Hamilton (Victoria Street), Cambridge, Wellington (Newtown), Rangiora and Christchurch (High Street). These shops are classed as boutique stores, offering mainly clothing (with bric-a-brac in Hamilton) of a very high standard.

FIRST AID

COURSE PARTICIPANTS

We have re-opened a store in Dargaville to replace one destroyed by fire at the beginning of 2009. This is a smart new store, much larger than the previous shop, and much enjoyed by the volunteer staff and customers. Processing centres, where donations are sorted, are now operating in Tauranga, Hamilton and Palmerston North. We have obtained stock from the same supplier as Australian Red Cross, and are indebted to brands such as Country Road, Witchery and Pumpkin Patch, who have very kindly assisted us by donating some end-of-line and seconds stock. Fashion Brands have also provided us with end-of-line jewellery.

2009 68,668

2010 67,583

2011 72,000

2012 74,000

2013 76,000

RETAIL SHOPS

People A positive outcome of the retail strategy has been an increase in the number of volunteers, who are a diverse mix of age groups and cultures. With the growth of the retail business, we have employed new regional retail managers in Auckland and Christchurch, joining those already in place in Hamilton and Wellington. The four managers will aim to open new stores and gradually revamp our existing stores to bring the new New Zealand Red Cross retail look to a consistent standard across the country. A new partnership, the first in Australasia, was developed in 2009/2010 with Country Road, to provide an incentive for people to donate higher quality clothes. This was launched on 1 July 2010.

The future Plans for 2010/2011 include opening eight new Red Cross stores.

38 2009

46 2010

54 2011

60 2012

60 2013

“Going through my head was I need to keep this guy alive and I also was thinking of all the things I’ve been taught with first aid training.” Gary McNelly, who used Red Cross first aid skills to help a severely injured teenager.

Challenges for the years ahead include sourcing suitable stock, maintaining a volunteer workforce and improving financial returns.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

fundraising

corporate partnershipS

In 2009/2010, New Zealand Red Cross launched seven emergency appeals, the largest of which raised nearly $4 million for Samoa and over $1.5 million for Haiti.

New Zealand Post Group – saving lives together New Zealand Red Cross and New Zealand Post Group launched a partnership in 2010 to provide support for disaster relief at a national and international level. The lifesaving partnership will ensure the best possible response for communities affected by disaster, making a difference to people here in New Zealand and throughout the Pacific.

The ongoing recession has affected New Zealand Red Cross in common with most other New Zealand charities. However, thanks to the remarkable generosity of our donors, our income from fundraising has increased. Our supporters have shown exceptional generosity in difficult economic times. We would like to thank them for making our work possible and look forward to their ongoing support, as we put our new strategy into action. In the 2009/2010 year, our individual supporters gave more generously than ever before, in spite of the recession. During the year, 8,800 new supporters made a commitment to donate monthly – evidence of the success of our regular giving investment programme. We also received $1 million in response to direct mail appeals. We raised over $429,000 during our annual appeal week in March 2010 from street and door-to-door collections and events nationwide. During 2009/2010, the fundraising team processed over $1.5 million of bequest income and actively generated over 40 new bequest enquiries. The cost of fundraising as a percentage of fundraising income (excluding direct government contributions) was 18.7% (25.2% in 2008/2009). New Zealand Red Cross joined forces with representatives from five other National Societies and the International Federation of Red Cross and Red Crescent Societies, to establish a Red Cross Red Crescent Asia Pacific Fundraisers’ Network. We organised and hosted a four-day skill sharing ‘hui’ in Auckland for 30 fundraising and communications colleagues from 18 National Red Cross and Red Crescent Societies in the Asia Pacific zone. We expect that from now until 2020 there will be a growing demand for New Zealand Red Cross services, both in New Zealand and overseas. To meet this challenge, we will pursue a fundraising strategy of growth, visibility, and efficiency. We will pursue a growth strategy through attracting new donors who will expand revenues in future years. We will continue to grow our regular giving programme, engaging more members of the public with our work.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

Telecom – emergency management teams supporter

Our growth will be supported by a strategy where our prime objective is to be noticed. Through our fundraising, we will raise awareness of our domestic activities such as Breakfast in Schools and People Savers (an introduction to first aid for children). We will seek corporate partners to help support and promote these activities in order to attract future supporters and donors. We will leverage this support to increase our influence with foundations and other forms of institutional funding. We recognise that cultivating relationships over time is an important element for donors of all kinds. By 2020 we aim to have: • a

well-established, well-informed and increased pool of regular givers

• a

successful direct marketing strategy that engages a broad spectrum of New Zealanders

• a

powerful and supportive network of corporate partners who increase our impact in society

• secured

greater levels of funding from trusts and other institutions.

Earthquakes happen. So do tornadoes, hurricanes, power outages, floods and bushfires. When an emergency occurs here in New Zealand the outcome may well depend on how well we respond. New Zealand Red Cross have recruited, trained and equipped two new emergency management teams in Auckland and Whangarei thanks to Telecom’s community investment. These new teams mean New Zealand Red Cross now provides effective emergency response coverage in all the major population centres in New Zealand. Telecom is helping us build the capacity of local communities by increasing skills and equipping people to care for each other. New Zealand Red Cross enhances community resilience through our emergency management teams, by providing first aid training for adults and children and a range of other initiatives. Saving a life is the ultimate humanitarian act.

Progressive Enterprises – helping make Breakfast in Schools possible New Zealand Red Cross and Progressive Enterprises have had a very positive five-year partnership delivering breakfasts to children in decile-one schools throughout New Zealand. The partnership has seen Progressive provide all the food through their Countdown supermarket chain free of charge.

New Zealand Red Cross works with the schools to provide the resources and volunteers to deliver the food and serve breakfasts each morning. The programme has been well received with feedback from school principals and teachers attesting to increased attentiveness, reduced truancy, better learning outcomes and improved behaviour from some participants. Since the programme started as a pilot in two South Auckland schools, it has extended to 61 schools nationwide and has delivered over 530,000 meals.

Country Road – making a stylish difference New Zealand Red Cross is delighted to partner with Country Road who donate end-of-line clothing from its 10 New Zealand stores. These items, being new, are able to be sold by Red Cross shops at a higher price than our usual donated goods, therefore increasing our revenue and support of Red Cross services. This relationship has grown with the development of Fashion Trade – an incentive program that rewards the public with a Country Road discount card when the brand’s clothing is donated at a Red Cross shop. This new venture will begin in the 2010/2011 year and bring even more quality donated clothing to our shops.

Partnerships and people for 2020 We believe that we can have the greatest impact by working in partnership with a select number of corporate supporters. Currently, companies support New Zealand Red Cross in many different ways. Their committed and long-term financial support enables us to plan ahead and fund valuable work. We are extremely grateful to everyone who has made our work and achievements possible. We hope New Zealand businesses will be inspired to support and fund our future ambitions.

New Zealand Red Cross volunteers and members collect funds on the streets of Auckland in March 2010 as part of our annual appeal fundraising drive.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

MARKETING AND COMMUNICATIONS “A strong communications-minded culture builds the capacities of National Societies by allowing them to be seen, heard, utilised and, ultimately, better resourced to help people in need.” Strategy 2020, International Federation of Red Cross and Red Crescent Societies

• a

social media strategy

• a

new corporate video

The communications team aim to raise the profile of New Zealand Red Cross and the emblems and principles of the International Red Cross and Red Crescent Movement by highlighting real people making a difference in the lives of others or the recipients of support, in an engaging and, hopefully, inspiring way. Examples of this are:

• a

presentation and function at Parliament

• Aid

The focus for the 2009/2010 year was to establish a strong communications team, and to create and implement a number of projects including:

• a

marketing and branding approval procedure throughout New Zealand Red Cross.

The team also supported various core activities such as fundraising, international, corporate partnerships, first aid and retail, and developed a comprehensive plan for the coming year. Key activities included: • promoting

the 2009 Christmas Lottery and the ‘See Red’ annual appeal in March, and international appeals for disasters in Samoa, Haiti and Chile

• launching

our own Facebook and Twitter pages and communications plan in April

• developing

a marketing and public relations campaign with our shops and partner Country Road

• raising

the awareness of our national programmes, particularly Breakfast in Schools

• enhancing

internal buy-in of key structural changes that affected volunteers, members and staff

worker Victoria Fray, who restored water and sanitation facilities after the Samoa tsunami, shown on Breakfast on TV One in April

• Rachel

Wong, who is driven to her hospital appointments from Kapiti to Wellington, featured in our corporate video

• Niall

Shepherd, sent to support security needs in Sri Lanka for six months, whose story appeared in media coverage and our website

• Santino

Deng, who helps coordinate the community garden at the Mangere Refugee Resettlement Centre, interviewed for our corporate video.

Looking ahead, our primary goal is to continue to raise the awareness and the importance of the work of New Zealand Red Cross throughout the country by working closely with area managers and to make New Zealand Red Cross more relevant to a younger audience. New brand and website initiatives are being developed to achieve this as well as developing best practice marketing strategies and campaigns to make the most of every opportunity.

• creating

awareness of international humanitarian law through the launch of the Pacific Journalism Review in Auckland in May

• highlighting

volunteer awareness week in June with media activity and promotional material.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

High visibility is vital for the success of Red Cross projects such as: improving the stock in Red Cross shops (top left),

helping wider audiences understand our values and activities (right) and Palmerston North’s mammoth annual book fair (bottom left).

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

Statement of Service Performance

FINANCIAL SUMMARY 2010

WHERE DID THE MONEY COME FROM?

for the year ended 30 June 2010

2010

The Statement of Service Performance reports on the activities of New Zealand Red Cross Incorporated. The Statement details actual outputs versus those planned together with a comparison with the previous two years.

2009

EDUCATION & TRAINING

2010 $6,133,000 2009 $6,328,000 LEGACIES

NZAID

Actual 2010

Planned 2010

Actual 2009

Actual 2008

RETAIL OPERATIONS

2010 $3,931,000 2009 $2,308,000

EDUCATION & TRAINING

INVESTMENT INCOME

International Programmes

Delegate deployments achieved Delegate deployment months achieved Number of IT&T ERU technician missions achieved. Number of international special appeals supported Contributions to international special appeals Development programmes supported Development grants to Pacific National Societies Restoring Family Links requests administered Disaster relief family kits stored

260

300

290

350

n/a

2010 $2,444,000 2009 $2,898,000 SPECIAL APPEALS

2010 $7,750,000 2009 $6,831,000

8.4M

6.0M

4.2M

2010 $8,403,000 2009 $6,003,000 LEGACIES

1,000

n/a

SPECIAL APPEALS

FUNDRAISING

INVESTMENT INCOME

Emergency Management

Number of operational Red Cross response teams

FUNDRAISING

Community training participants

10,973

12,800

9,766

14,699

Meals on Wheels delivered Refugees supported

696,875

760,000

759,532

747,731

529

265

1,072

938

IHL seminar/training participants Breakfasts served in decile 1 schools Patients transported in community transport programmes

1,080

855

865

4,962

285,429

214,000

213,939

70,540

10,059

7,900

7,874

Yes

67,583

73,000

68,668

64,357

OTHER

Commercial training participants

HOW DID WE HELP VULNERABLE PEOPLE? EMERGENCY MANAGEMENT (NZ)*

2010 $347,000 2009 $364,000

Retail

Number of shops (including branch shops) New shops opened

2010 $946,000 2009 $1,227,000

OTHER

Education and Training

Maintain registration as PTE

NZAID AID WORKER PROGRAMME

2010 $1,000,000 2009 $1,000,000

RETAIL OPERATIONS

Community Programmes

Develop new national programmes

2010 $1,719,000 2009 $1,002,000

COMMUNITY ACTIVITIES (NZ)*

2010 $2,420,000 2009 $1,668,000 INTERNATIONAL PROGRAMMES

2010 $4,337,000 2009 $5,152,000 SPECIAL APPEALS

2010

2009

2010 $8,402,000 2009 $6,046,000

*Emergency management and community activities are primarily volunteer delivered programmes.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

Chief Financial Officer’s Review

Statement of Financial Performance FOR THE YEAR ENDED 30 JUNE 2010

In the year under review, our financial position improved as a result of a revaluation of our investments and significant legacies left to New Zealand Red Cross. During the year we were able to commit a record $15.5 million to our humanitarian activities, an increase on the $13.2 million in the previous year. The Society, before consolidation of the New Zealand Red Cross Foundation, recorded a surplus of $1.3 million after expenditure on operational and humanitarian activities. This compares with a surplus of $324,000 in the previous year. After consolidating the financial results for the New Zealand Red Cross Foundation, a surplus of $2.9 million has been reported, which includes an increase in the fair value of investments of $1.5 million. This compares with a deficit of $3.5 million in the previous year. A soft commercial rental market in Wellington has led to a decrease in the fair value of Red Cross House by $1.0 million, which has resulted in the Group recording total comprehensive income of $1.9 million for the year. Consolidated total funds at 30 June 2010, were $62.3 million (2009, $60.7 million) which includes property, plant and equipment of $21.6 million (2009, $23.5 million), and investments of $35.8 million (2009, $34.0 million). OPERATING ACTIVITIES

The net surplus from trading activities was $2.7 million, a 5.4% increase from the previous year. Our first aid training recorded a surplus of $1.3 million, and our chain of retail stores a surplus of $1.4 million. Increased returns from our trading activities helped offset the effect of lower interest rates on investment income. Net income from fundraising (before legacies and special appeals) totalled $4.8 million, which was 25% above the previous year. We received generous and consistent support from both our regular monthly donors and contributors to our direct mail campaigns.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

CORE ACTIVITIES

Our humanitarian work or core activities encompasses programmes in New Zealand including Meals on Wheels, community transport, community training, Breakfast in Schools, and emergency response, and international activity including our international aid workers, Pacific Red Cross National Society development, and international aid development programmes. During the year we were able to spend $7.1 million on these activities which maintained spending at the 2009 level. Sadly we called on the New Zealand public to respond to disasters in Samoa in September, and Haiti in January as well as earthquakes in China, Chile and Indonesia, and their response along with contributions from the New Zealand Government, provided $8.7 million in support of international appeals. STATEMENT OF FINANCIAL POSITION

Accumulated funds at 30 June 2010 were $50.2 million after consolidating Foundation funds, an increase of $2.9 million over the previous year. The total funds including restricted funds and the asset revaluation reserve, were $62.3 million, an increase of $1.6 million over the previous year. Our investments of $21.8 million ($35.8 million after consolidating Foundation investments) are invested in accordance with an approved “Statement of Investment Policy and Objectives”, which established investment portfolio objectives and target asset allocations. Investment returns form part of the income available for our humanitarian activity.

New Zealand Red Cross Consolidated Note

2010

2009

2010

2009

$’000

10,064

8,636

10,064

8,636

Expenditure on trading activities

7,397

6,106

7,397

6,106

Surplus from Trading Activities

2,667

2,530

2,667

2,530

Income from administration activities

2,444

2,898

2,372

2,590

Expenditure on administration activities

5,242

5,044

5,147

4,936

(2,798)

(2,146)

(2,775)

(2,346)

Trading Activities

Income from trading activities

Administration Activities

Deficit from Administration Activities (Deficit)/Surplus before Revenue Generation

384

(108)

184

19,818

16,063

19,694

16,403

2,958

3,023

2,958

3,023

Surplus from Revenue Generation Activities

16,860

13,040

16,736

13,380

Surplus Available for Core Activities

16,729

13,424

16,628

13,564

15,506

13,230

15,506

13,230

1,223

194

1,122

334

Revenue Generation Activities

(131) 3

Income from revenue generation activities Expenditure on revenue generation activities

Core Activities

Expenditure on core activities Surplus after Core Activities

Net (loss) on sale of assets

(20)

Capital gain on sale of buildings

235

Changes in fair value through profit or loss for investments Ian McEwan Chief Financial Officer

New Zealand Red Cross Excluding Foundation

Total Surplus/(Deficit) for the Year

1,486 2,924

(10) -

(20)

(10)

235

(3,689)

(3,505)

1,337

324

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

Statement of Comprehensive Income

Statement of Changes in Equity for the year ended 30 June 2010

for the year ended 30 June 2010

New Zealand Red Cross Consolidated 2010 Total Surplus/(Deficit) for the Year

New Zealand Red Cross Excluding Foundation

2009

2010

2009

$’000

2,924

(3,505)

1,337

324

Other Comprehensive Income

Revaluation of land and buildings

(1,000)

Other Comprehensive Income for the Year

(1,000)

Total Comprehensive Income for the Year

1,924

(3,505)

337

324

New Zealand Red Cross Consolidated Accumulated Funds

Restricted funds

Asset Revaluation Reserve

Total funds

$’000

Opening Funds 1 July 2008

50,939

2,033

11,244

64,216

Total comprehensive income for the year

(3,505)

(150)

150

Transfer to restricted funds

(3,505)

Closing Funds 30 June 2009

47,284

2,183

11,244

60,711

Opening Funds 1 July 2009

47,284

2,183

11,244

60,711

2,924

(1,000)

1,924

(307)

50,208

2,183

9,937

62,328

Accumulated Funds

Restricted funds

Asset Revaluation Reserve

Total funds

$’000

31,655

2,033

11,244

44,932

324

150

Total comprehensive income for the year Transfer to total surplus/(deficit) on sale of building Closing Funds 30 June 2010

(307)

New Zealand Red Cross Excluding Foundation

Opening Funds 1 July 2008

Total comprehensive income for the year Transfer to restricted funds Closing Funds 30 June 2009

31,829

2,183

11,244

45,256

Opening Funds 1 July 2009

31,829

2,183

11,244

45,256

1,337

(1,000)

(307)

33,166

2,183

Total comprehensive income for the year Transfer to total surplus/(deficit) on sale of building Closing Funds 30 June 2010

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

(150)

9,937

337 (307) 45,286

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

Statement of Financial Position

Statement of Cash Flows

as at 30 June 2010

for the year ended 30 June 2010

New Zealand Red Cross Consolidated Note

New Zealand Red Cross Excluding Foundation

Restricted funds

Asset revaluation reserve Total Funds

2009

2010

2009

2010

2009

2010

2009

$’000

50,208

47,284

33,166

31,829

2,183

9,937

11,244

9,937

11,244

10,259

8,318

10,259

8,318

62,328

60,711

45,286

45,256

122

223

872

973

20,028

16,356

19,871

16,671

1,605

2,322

1,401

1,593

380

413

32,394

27,632

32,403

27,555

Represented By:

Receivables

Inventory Investments – current

Cash Flows from Operating Activities

Cash was provided from: Trading activities Administration activities Revenue generation activities Interest income

Current Assets

Cash and cash equivalents

Total Current Assets

9,107

4,700

5,811

1,916

1,222

1,228

1,416

1,392

543

415

543

415

4,034

5,384

129

14,906

11,727

7,899

3,818

Current Liabilities

Dividend income Cash was applied to: Trading activities

(7,557)

(5,833)

(7,557)

(5,833)

Administration activities

(4,681)

(4,509)

(4,591)

(4,401)

Revenue generation activities

(3,021)

(3,201)

(3,021)

(3,201)

(11,919)

(13,740)

(11,919)

(13,740)

(27,178)

(27,283)

(27,088)

(27,175)

Core activities

Payables

1,381

990

1,360

973

Provisions for employee entitlements

521

824

521

824

3,640

Net Cash Inflow from Operating Activities

273

262

273

262

Cash Flows from Investing Activities

861

1,088

861

1,088

Total Current Liabilities

6,676

3,164

6,655

3,147

Net Current Assets

8,230

8,563

1,244

671

31,751

28,636

21,695

21,073

Property, plant and equipment

21,600

23,461

21,600

23,461

Intangible assets (software)

771

54,122

52,172

44,066

44,609

62,328

60,711

45,286

45,256

Provision for Samoa tsunami recovery project Grants received in advance Special appeals

5,216

349

5,315

380

4,005

6,779

1,411

1,874

807

4,812

6,814

2,218

1,909

Purchase of investments

(4,050)

(8,984)

(2,067)

(942)

Purchase of property, plant and equipment

(1,571)

(1,569)

(1,571)

(1,569)

(5,621)

(10,553)

(3,638)

(2,511)

(809)

(3,739)

(1,420)

(602)

(3,390)

3,895

(222)

Cash was provided from: Sale of investments Sale of property, plant and equipment

Non Current Assets

Investments – non current

Total Non Current Assets

Cash was applied to:

Non Current Liabilities

Licences to occupy Total Non Current Liabilities Net Assets

New Zealand Red Cross Excluding Foundation

2010

Funds

Accumulated funds

New Zealand Red Cross Consolidated

Net Cash (Outflow) from Investing Activities Net Increase/(Decrease) in Cash Held

4,407

For and on behalf of the National Board who authorised the issue of these financial statements on 18 September 2010.

PENNY MASON National President

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

JOHN WARE Chief Executive

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

Statement of Cash Flows

Notes to the Financial Statements

for the year ended 30 June 2010

New Zealand Red Cross Consolidated

New Zealand Red Cross Excluding Foundation

2010

2009

2010

2009

$’000

Net increase/(decrease) in cash held

4,407

(3,390)

3,895

Add opening cash brought forward

4,700

8,090

1,916

2,138

Ending Cash Carried Forward

9,107

4,700

5,811

1,916

Cash and cash equivalents

9,107

4,700

5,811

1,916

Ending Cash Carried Forward

9,107

4,700

5,811

1,916

(222)

This is represented by:

Reconciliation of Operating Cash Flow with Total Comprehensive Income Reported Total Comprehensive Income

1,924

(3,505)

337

324

Add Non Cash Items

Depreciation on property, plant and equipment Amortisation (software) Revaluation of land and buildings

1. Summary of Accounting Policies

Basis of Preparation

These financial statements and the accompanying notes summarise the financial results of the activities carried out by New Zealand Red Cross Incorporated (“Red Cross”). The reporting entity comprises the National Office, our Regional Offices and 100 branches of Red Cross. The consolidated financial statements additionally include the activities of the New Zealand Red Cross Foundation (“the Foundation”) which was established in 1978 to hold and invest funds on behalf of Red Cross. The primary objective of the Foundation is to provide a source of sustainable funding for Red Cross.

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

Red Cross is part of the largest humanitarian organisation in the world, helping people wherever they might be – internationally or in our own communities. The mission of New Zealand Red Cross is to improve the lives of vulnerable people by mobilising the power of humanity and enhancing community resilience. Our fundamental principles are:

787

848

787

848

1,000

1,856

888

1,856

888

Add/(Less) Movements in Working Capital Items

• humanity • impartiality • neutrality • independence • voluntary

service

• 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.

The functional currency and presentation currency is New Zealand Dollars (“NZD”), and the amounts presented in the financial statements are rounded to the nearest thousand (000’s). 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. Red Cross and the Foundation qualify for differential reporting under the framework for differential reporting issued by the New Zealand Institute of Chartered Accountants as Red Cross and the Foundation have no public accountability and no separate owners or governing body.

Increase/(decrease) in accounts payable

(3)

• unity

Increase in grants in advance

• universality

Red Cross has taken advantage of all differential reporting exemptions allowed under the framework for differential reporting, with the exception of NZ IAS-7 Statement of Cash Flows.

Red Cross shares our fundamental principles with 185 other National Red Cross and Red Crescent societies.

Standard and Interpretations Effective in the Current Period

Statement of Compliance

The revision to NZ IAS 1 was effective in the current period and has introduced minor terminology changes including revised titles for the financial statements.

Increase/(decrease) in special appeals (Increase) in accounts receivable (Increase) in inventories

3,413

(837)

3,413

(837)

(44)

(164)

(24)

(72)

(128)

(104)

(128)

(104)

3,345

(969)

3,355

(929)

Add/(Less) Items Classified as Investing Activities

Net Loss on sale of property, plant and equipment Capital gain on sale of buildings (Decrease)/increase in accounts payable – property, plant and equipment Net surplus on sale of investments Changes in fair value through profit or loss for investments Net Cash Inflow from Operating Activities

(235)

(18)

135

(1,676)

3,703

(1,909)

3,935

5,216

349

(233) 5,315

97 380

New Zealand Red Cross Incorporated is a society incorporated under the Incorporated Societies Act 1908. New Zealand Red Cross Foundation is a charitable trust registered under the Charitable Trusts Act 1957. Both Red Cross and the Foundation are registered as charities under the Charities Act 2005. The registration number for Red Cross is CC21860 while that for the Foundation is CC22820. Red Cross is deemed a Public Benefit Entity. The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (“NZ GAAP”). They comply with the New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”) and other applicable financial reporting standards as appropriate for public benefit entities that qualify for and apply differential reporting concessions permissible under the NZ IFRS framework. The financial statements were authorised for issue by the National Board of Red Cross on 18 September 2010.

Significant Judgements, Estimates, and Assumptions The preparation of financial statements requires the use of accounting estimates and management to exercise their judgement in applying accounting policies. Estimates and assumptions are based on experience and other factors appropriate to the circumstances. Actual results may differ from the judgements, estimates, and assumptions. The key judgements, estimates and assumptions made in the process of applying Red Cross’ accounting policies in these financial statements are: (a) Judgement is used in determining if a commitment has been made by the National Board to fund a specific project and therefore to record a provision in the Statement of Financial Position, (b) The fair values of land and buildings are subject to judgement as the fair values are determined by an independent valuer using assumptions and valuation methods.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

(c) There are 100 branches of Red Cross (2009: 106). Branches with turnover greater than $50,000 are audited by Deloitte as part of the annual audit engagement. Branches with turnover of between $20,000 and $50,000 are reviewed by Deloitte on a cyclical basis (approximately every 3 years) and a sample of branches with turnover less than $20,000 are reviewed internally. However at the date of signing the 30 June 2010 Red Cross consolidated financial statements, not all the branches had submitted their annual returns and there is some estimation of the financial results for these branches in the consolidated financial statements. Significant Accounting Policies The following significant accounting policies have been adopted in the preparation and presentation of the financial statements: (a) Basis of consolidation The consolidated financial statements are prepared by combining the financial statements of Red Cross and the Foundation. Consistent accounting policies are employed in the preparation and presentation of the consolidated financial statements. In preparing the consolidated financial statements, all intra-group balances and transactions, and any unrealised profits arising within these transactions, are eliminated in full. (b) Comparative amounts Comparative information has been reclassified, where necessary, to achieve consistency in disclosure with the current year. (c) Employee benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick 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. (d) Funds Funds comprise Accumulated Funds, unspent funds held for specific purposes termed Restricted Funds (as detailed in Note 11), and the Asset Revaluation Reserve comprising balances built up through the upward revaluation of property. (e) Financial instruments Financial Instruments Financial instruments include financial assets (cash, receivables and investments) and financial liabilities (payables, grants received in advance and special appeals). Red Cross does not have any derivative financial instruments. Financial instruments are initially recorded at fair value plus transaction costs except for those investments categorised as fair value through the profit or loss which are initially recorded at fair value. Subsequent measurement of financial instruments is dependent upon the classification determined by Red Cross. Financial assets 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. 42

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

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 at fair value through profit or loss Investment financial assets are designated upon initial recognition to be fair value through profit or loss as these investments are managed and their performance is evaluated on a fair value basis in accordance with the Statement of Investment Policy and Objectives. Loans and receivables 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. Financial liabilities All financial liabilities are initially measured at fair value, net of transaction costs and then at amortised cost. (f) Foreign currency All foreign currency transactions during the year are brought to account using the exchange rate in effect at the date of the transaction. Foreign currency monetary items at reporting date are translated at the exchange rate existing at reporting date. Exchange differences are recognised in the Statement of Comprehensive Income in the period in which they arise. (g) Goods & Services Tax New Zealand Red Cross Incorporated All balances are presented net of goods and services tax (GST), except for receivables and payables which are presented inclusive of GST. New Zealand Red Cross Foundation The Foundation is not registered for GST and consequently all of its balances are stated inclusive of GST where appropriate. (h) Impairment of Assets At each reporting date, Red Cross reviews the carrying amounts of its tangible and intangible assets 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). 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. 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 Comprehensive Income 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 been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised in the Statement of Comprehensive Income immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.

Depreciation is provided on all property, plant and equipment excluding land. The following estimated rates are used in the calculation of depreciation on a straight line basis: Asset Class

Annual Depreciation Rate

Buildings

2.0%

Computer Hardware

33.3%

(i) Income Tax

Equipment

20.0%

The Inland Revenue has approved Red Cross and the Foundation for legal charitable and donee status. The organisation is exempt from income tax subject to the sections within the Income Tax Act 2007.

Furniture and Fittings

10.0%

Motor Vehicles

10.0% to 20.0%

(j) Intangible Assets Software Computer software is a finite life intangible asset and is recorded at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged on a straight line basis over the estimated useful life of 3 years. (k) Inventories Inventories are valued at the lower of cost, determined on a first-in first-out basis, and net realisable value. (l) Leased Assets All leases at Red Cross 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. (m) Payables Trade payables and other accounts payable are recognised when Red Cross becomes obliged to make future payments resulting from the purchase of goods and services. (n) Property, Plant & Equipment Land and buildings are measured at fair value. Fair value is determined on the basis of independent valuations prepared by independent registered valuers. Recent acquisitions and improvements are carried at cost less depreciation. The fair values are recognised in the consolidated financial statements and are reviewed by the National Board at the end of each reporting period to ensure that the carrying value of land and buildings is not materially different from their fair values. Any revaluation increase arising on the revaluation of land and buildings is 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 the Statement of Comprehensive Income, in which case the increase is credited to the Statement of Comprehensive Income 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. The legal title to all land and buildings is in the name of New Zealand Red Cross Incorporated. All other property, plant and equipment is recorded at cost less accumulated depreciation.

(o) Revenue Recognition Sale of Goods Revenue from the sale of goods is recognised when Red Cross has transferred to the buyer the significant risks and rewards of ownership of the goods. First Aid Training First aid training courses completed during the year are recognised as income with reference to the percentage of completion method. Cash received in advance for courses completed after 30 June is carried forward as a liability at 30 June. Dividend & Interest Income Interest is recognised using the effective interest rate method and dividends from investments are recognised when the rights to receive payments have been established. Donations Public donations are recognised on a cash basis. Refer (t) for policy relating to special appeals. (p) Funds 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. (q) Contributions in Kind – Volunteers, Members, and Organisations Red Cross has benefited from significant donations of services and goods by volunteers, members and by organisations. While these donations in kind are difficult to measure, they are a major contribution to Red Cross operations. No reliable figures are available and they are not recognised in the financial statements. (r) Grants Grants received are not recognised in the Statement of Comprehensive Income until the requirements of the grant agreement have been met. Grants received for which the requirements have not been met at balance date are shown as Grants received in advance under Current Liabilities. Government grants relating to income are recognised as income over the periods necessary to match them with the related services when performed. (s) Legacies Legacy income is received from people who bequeath part of their estate to Red Cross. This is recognised on a cash basis, and all legacy receipts are recognised as income in the period in which they are received. Unless recognised as a specific purpose

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

legacy, the legacy is invested with the Foundation on a long term basis and the interest generated on the investment is used to fund the operating activities of Red Cross.

2. Trading & Administration Activities – Analysis, Consolidated First Aid Training

Red Cross Shops

Administration

2010

2009

$’000

Training fees

5,735

5,837

Trading sales

397

467

3,909

3,947

2,349

(t) Special Appeals Donations received from the public for International Red Cross Appeals are transferred in full to the International Appeal Fund in Geneva or to the relevant Red Cross National Society. Those donations which have not been transferred at balance date are recorded as Special Appeals in the Statement of Financial Position except to the extent the board has identified a constructive obligation to transfer the funds in which case a provision is recognised. Refer note (x). (u) Expenses

Income

Public donations Rents

217

249

Interest

1,620

2,192

Dividends

380

408

Expenses are recognised on an accruals basis.

Net gain/(loss) on sale of investments

190

(14)

(v) Licences to Occupy

Other income

The licences are interest free and are payable within a reasonable time after the unit is vacated. The ‘Licences to Occupy’ funds are held in a term deposit with the Foundation.

6,133

3,931

2,444

12,508

11,534

Personnel costs

3,071

620

2,224

5,915

5,609

271

694

965

648

(w) Statement of Cash Flows For the purpose of the cash flow statement, cash includes cash on hand and cash held with banking institutions and excludes any cash held with custodians. The following terms are used in the statement of cash flows:

Total Income Expenditure

Trading purchases Property costs Supplies, materials and other* Depreciation Amortisation (software)

252

796

626

1,674

1,412

1,188

380

1,872

3,440

2,744

394

519

639

Operating Activities – are the principal revenue producing activities of the Red Cross and other activities that are not investing or financing activities.

Total Expenditure

4,839

2,558

5,242

12,639

11,150

Net Surplus (Deficit)

1,294

1,373

(2,798)

Investing Activities – are the acquisition and disposal of investments, property, plant and equipment and intangibles.

*Includes $2,900 incurred for services carried out by Deloitte other than audit fees (2009: $0).

Financing Activities – are activities that result in changes in the size and composition of the contributed accumulated funds and any borrowings.

Audit fees

First Aid Training

$’000

Red Cross Shops

Administration

2010

2009

$’000

Income

Training fees

5,735

5,837

Trading sales

397

467

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Provisions for Projects

Other income

Commitments made by the board to fund specific projects from Special Appeal funds are recognised as provisions (refer note (t)). An obligation to fund a project is considered to exist when the board has agreed to a specific project plan and the intention to fund the project has been communicated to the recipient.

384

Trading & Administration Activities – Analysis, Excluding Foundation

(x) Provisions Provisions are recognised when the organisation has a present obligation as a result of a past event, the future sacrifice of economic benefits is probable and the amount of the provision can be measured reliably.

(131)

750

3,909

3,914

2,349

Rents

217

249

Interest

1,401

1,527

6,133

3,931

2,372

12,436

11,226

3,071

620

2,144

5,835

5,530

271

694

965

648

New Zealand Red Cross Foundation grant Public donations

Total Income Expenditure

Personnel costs Trading purchases Property costs Supplies, materials and other* Depreciation Amortisation (software)

252

796

626

1,674

1,412

1,188

380

1,869

3,437

2,727

394

519

639

Total Expenditure

4,839

2,558

5,147

12,544

11,042

Net Surplus (Deficit)

1,294

1,373

(2,775)

Audit fees

(108)

184

*Includes $2,900 incurred for services carried out by Deloitte other than audit fees (2009: $0). 44

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

3. Revenue Generation Activities – Analysis, Consolidated and Excluding Foundation

New Zealand Red Cross Consolidated Note

5. Property, Plant And Equipment – Analysis, Consolidated and Excluding Foundation

New Zealand Red Cross Excluding Foundation

2010

2009

2010

2009

$’000

Income

– Project partners

4,649

3,944

4,649

3,944

– Annual appeal

429

474

429

474

1,089

649

1,089

649

– Lottery

243

226

244

226

– Other

1,340

1,538

1,340

1,538

5,652

3,314

5,652

3,314

3,003

3,076

3,003

3,076

– Direct mail

International (special) appeals – Public – New Zealand Government

– Interest

(286)

Less: unexpended special appeal income carried forward New Zealand Government (excluding special appeals) New Zealand Red Cross Foundation grant Contracts Unspent Indonesia fund recovery Legacies Other Total Income

(425)

(286)

(425)

1,000

500

941

1,070

941

1,070

148

1,719

1,002

1,595

842

19,818

16,063

19,694

16,403

606

589

606

589

Other fundraising costs

2,352

2,434

2,352

2,434

Total Expenditure

2,958

3,023

2,958

3,023

16,860

13,040

16,736

13,380

Personnel costs

Net Surplus

Annual Depreciation Charge

$’000

19,655

643

19,012

154

Equipment

2,200

1,657

543

214

Computer hardware

1,283

1,142

141

Furniture and fittings

1,678

779

899

2,570

1,565

1,005

245

27,386

5,786

21,600

787

21,309

511

20,798

225

2,088

1,433

655

226

Computer hardware

1,575

1,067

508

Furniture and fittings

1,330

671

659

Motor vehicles Net Book Value, 30 June 2009

Land and buildings Equipment

2,158

1,317

841

251

28,460

4,999

23,461

848

2010

2009

23,461

22,937

Additions

825

1,465

(Disposals)

(899)

Motor vehicles Net Book Value, 30 June Summary

Net book value, 1 July

International Humanitarian Law

Disaster Relief & Development

Emergency Management

(1,000)

Revaluation increases/(decreases)

(787)

Net Book Value, 30 June

2010

2009

$’000

Personnel costs – New Zealand

384

1,419

1,806

1,416

Aid workers

1,147

1,113

Computer software

1,485

1,581

International appeals

8,402

6,046

Summary

International levies

275

336

International projects – other

141

914

236

970

2,122

2,387

129

108

268

210

12,737

347

2,420

15,506

13,230

Expenditure

Depreciation Total Core Expenditure

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

23,461

Cost

Accumulated Amortisation

Net Book Value

Annual Amortisation Charge

$’000

1,115

344

771

350

275

2010

2009

2010

$’000

Supplies, materials & other

21,600

(848)

The most recent independent valuation was performed 30 June 2010 by Telfer Young, members of the Property Institute of New Zealand. This valuation reflects the fair value of the aggregate portfolio of property and uses comparable market value as the basis of the valuation.

Community Activities

Note

(93)

6. Intangible Assets, Software – Analysis, Consolidated and Excluding Foundation

4. Core Activities – Analysis, Consolidated and Excluding Foundation

Net Book Value

(Depreciation)

Expenditure (Direct Costs)

Grant disbursements

Accumulated Depreciation

2010

Land and buildings

Public donations:

Cost or Valuation

Computer software 2009

765

(Amortisation)

(69)

(40)

Net Book Value, 30 June

771

Net book value, 1 July Additions

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

8. Government Grants for Disaster Relief, Consolidated and Excluding Foundation

7. Grants Disbursements – Analysis, Consolidated and Excluding Foundation

2010

2009

$’000

$’000 6

Pacific disaster preparedness

In the year ended 30 June 2010, New Zealand Red Cross made grants disbursements of $1.5 million (2009: $1.6 million).

Fiji floods and tropical cyclone

The International Federation of Red Cross & Red Crescent Societies:

100

Cambodia -– dengue fever eradication programme

200

Disaster relief supplies

171

Timor-Leste – first aid programme

202

150

Pacific first aid trainers’ programme

Vietnam – health care

Afghanistan – health improvement programmes

2010

The International Committee of the Red Cross

South East Asia – mine action

Cambodia – centre for disabled

100

Pacific telecommunications project

330

297

Cook Islands Red Cross Society – branch development, land lease & other

153

Fiji Red Cross Society – HIV/Aids awareness/peer education programmes

100

Kiribati Red Cross Society – branch development

Samoa Red Cross Society – first aid programme

Tonga Red Cross Society – branch development, blood programme

Vanuatu Red Cross Society – first aid programme & support

Tuvalu Red Cross Society – programme support

Sub regional workshop

158

Other Pacific Red Cross National Society support

1,485

1,581

Chile earthquake

500

Vietnam floods

500

Haiti

400

Phillipines

500

Guatemala

300

Indonesia earthquake

270

China earthquake

400

South East Asia floods

100 6

Tonga Total Grants for 2010

3,003

Pacific National Red Cross Societies – Programme Support

Solomon Islands Red Cross – first aid programme

Total Disbursements

2009 $’000 500

Australia bush fires

Fiji floods Disaster relief emergency fund – International Federation of Red Cross and Red Crescent Societies

500

Papua New Guinea floods

150 55

Solomon Islands flood

577

Sri Lanka tsunami emergency fund Zimbabwe food insecurity

1,200

Total Grants for 2009

3,076

9. Unexpended Special Appeal Funds – Analysis, Consolidated and Excluding Foundation SE Asia Tsunami

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

Opening balance

Other

2010

2009

$’000

600

488

1,088

1,924

5,652

3,314

Donations received: – Public donations

3,003

3,076

628

9,149

9,777

8,352

306

938

Transfer to Australian Red Cross (Bush fires)

3,320

Transfer to International Federation of Red Cross and Red Crescent Societies

4,850

2,750

Transfer to provision for Samoa tsunami recovery project

3,640

Transfer to International Committee of Red Cross

Transfer to Fiji Red Cross Society (Fiji floods)

106

– New Zealand Govt – Other international (Note 8) Interest earned on funds invested Less

Humanitarian aid worker costs

Transfer to Papua New Guinea Red Cross (PNG floods) Unexpended Special Appeal Funds carried forward

150

307

8,609

8,916

7,264

321

540

861

1,088

Unexpended tsunami funds are being utilised for funding of humanitarian aid workers in tsunami affected countries.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

10. Capital Commitments

New Zealand Red Cross Consolidated

There are no capital commitments for future capital expenditure resulting from contracts entered into at balance date (2009 consolidated and excluding foundation: $364,000) New Zealand Red Cross Consolidated 2010 $’000

2009 $’000

New Zealand Red Cross Excluding Foundation 2010 $’000

20,568

$’000

21,168

21,695

21,073

Consists of:

Investment with the Foundation

Meals on Wheels activities

Emergency response units/vehicles

1,737

2,183

704

1,011

704

1,011

141

483

712

381

1,222

1,228

1,416

1,392

Total Payables

3,905

5,289

Long term fixed interest

20,940

20,710

505

10,306

7,926

129

35,785

34,020

21,824

21,168

4,034

5,384

129

Non-current

31,751

28,636

21,695

21,073

Total Investments

35,785

34,020

21,824

21,168

Long term deposits Public company shares Other Total Investments Investments categorised as:

16. Licences To Occupy

Licences to occupy at 1 July

13. Payables

Accruals

Short term fixed interest

Current

12. Receivables

Trade

600

21,502

Total Receivables

322 21,824

Other

600 34,020

Local projects and developments

Foundation – accrued interest and sale proceeds

Held for tsunami appeal

33,420

199

Trade

322

15. Investments

35,785

199

Total Restricted Funds

2009 $’000

35,463

199

Specific purpose legacies

2010 $’000

Total Investments

199

International humanitarian law conference

2009 $’000

Held for branches/regions/national office/the Foundation

New Zealand Red Cross has the following restricted funds:

Purchase and maintenance of properties

2010 $’000

2009

11. Restricted Funds

International appeals and development

New Zealand Red Cross Excluding Foundation

952

644

952

627

Less: Repayments Licences to occupy at 30 June

429

346

408

346

1,381

990

1,360

973

These licences relate to pensioner units in Kaiapoi that Red Cross formerly owned. Red Cross leased back a number from the new owner, with the lease term of each expiring when the existing Red Cross tenant vacates the unit.

424

357

424

357

17. Contingent Liabilities

20. Management Remuneration Total remuneration received by the Chief Executive and those managers reporting directly to the Chief Executive was $1,001,000 (2009: $979,000).

14. Employee Entitlements

Holiday Payroll and other Total Employee Entitlements

467

There were no contingent liabilities at 30 June 2010 (2009: Nil).

521

824

521

824

18. Significant Events after Balance Date A 7.1 magnitude earthquake struck Canterbury on Saturday 4 September 2010. In response to the earthquake Red Cross launched the New Zealand Red Cross Canterbury Earthquake Appeal (the Appeal). At the time the financial statements were authorised no reliable estimate of the amount of funds the Appeal will generate was available. 19. Related Party Transactions Red Cross pays annual levies to the International Committee of the Red Cross “ICRC” and the International Federation of Red Cross and Red Crescent Societies “IFRC”. Levies in respect of year ended 30 June 2010 were $275,000 (2009: $336,000). All donations received by Red Cross for international work and special appeals overseas are sent to the ICRC or the IFRC. Due to the long term implication of tsunami relief work, unexpended money is being held with the Foundation for funding of humanitarian aid workers in tsunami affected countries.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

21. Financial Instruments Significant Accounting Policies Details of the significant accounting policies and methods adopted, including the criteria for recognition and the basis of measurement applied in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements. Capital Risk Management Red Cross manages its capital to ensure that it will be able to continue as a going concern while maximising the return to the Foundation and preserving the capital value of the assets. The capital structure of Red Cross consists of cash and accumulated funds as disclosed in the Statement of Changes in Equity. The Trustees of the Foundation have approved a SIPO (Statement of Investment Policy and Objectives) which establishes investment portfolio objectives and target asset allocations. Performance against these targets is reviewed quarterly by the Trustees and asset reallocations undertaken as required.

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

21. Financial Instruments Categories of Financial Assets and Financial Liabilities, Consolidated

2010

21. Financial Instruments Categories of Financial Assets and Financial Liabilities, Excluding Foundation

Financial Assets at Fair Value through Profit or Loss

Loans and Receivables

Financial Liabilities at Amortised Cost

Non Financial Assets and Liabilities

Total Carrying Amount

$’000

9,107

1,222

Assets Cash and cash equivalents

Loans and Receivables

Financial Liabilities at Amortised Cost

Non Financial Assets and Liabilities

Total Carrying Amount

$’000

5,811

Assets Cash and cash equivalents

1,222

1,416

35,785

Investments

21,824

1,222

46,114

Total Financial Assets

27,635

1,416

29,051

22,914

Non-financial assets

22,914

44,892

1,222

22,914

69,028

Total Assets

27,635

1,416

22,914

51,965

Trade and other payables

(6,155)

Total Financial Liabilities

(6,155)

Non-financial liabilities

(545)

Total Liabilities

(6,155)

(545)

(6,700)

Financial Assets at Fair Value through Profit or Loss

Loans and Receivables

Financial Liabilities at Amortised Cost

Non Financial Assets and Liabilities

Total Carrying Amount

$’000

Trade receivables Investments

35,785

Total Financial Assets

44,892

Non-financial assets Total Assets Liabilities

2009

Cash and cash equivalents Trade receivables

Trade receivables

Liabilities -

(6,155)

Trade and other payables

(6,134)

(6,155)

Total Financial Liabilities

(6,134)

Non-financial liabilities

(545)

Total Liabilities

(6,134)

(545)

(6,679)

Financial Assets at Fair Value through Profit or Loss

Loans and Receivables

Financial Liabilities at Amortised Cost

Non Financial Assets and Liab ilities

Total Carrying Amount

$’000

1,916

1,392

2009

4,700

1,228

Cash and cash equivalents Trade receivables

(6,134)

21,168

1,392

24,476

23,951

23,084

1,392

23,951

48,427

Trade and other payables

(2,323) (2,323)

34,020

Total Financial Assets

38,720

1,228

39,948

Non-financial assets

23,951

38,720

1,228

23,951

63,899

Total Financial Liabilities

Trade and other payables

(2,340)

Non-financial liabilities

Total Financial Liabilities

(2,340)

Total Liabilities

Non-financial liabilities

(848)

Total Liabilities

(2,340)

(848)

(3,188)

Liabilities

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

23,084

Investments

Total Assets

(6,134)

Investments Total Financial Assets

Non-financial assets

Assets

2010

Financial Assets at Fair Value through Profit or Loss

Total Assets Liabilities

(2,323)

(848)

(3,171)

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

22. Revenue

New Zealand Red Cross Consolidated

New Zealand Red Cross Excluding Foundation

AUDITORS REPORT

2010

2009

2010

2009

$’000

AUDIT REPORT

10,064

8,636

10,064

8,636

2,444

2,898

2,372

2,590

TO THE MEMBERS OF THE NEW ZEALAND RED CROSS INCORPORATED

Revenue generation

19,818

16,063

19,694

16,403

Total Revenue

32,326

27,597

32,130

27,629

Trading activities Administration

Trading and Administration

The bulk of this income is generated by first aid and emergency care education, Red Cross Shops and interest on investments. This income is applied to running Red Cross in New Zealand. Revenue Generation

This income is mostly received from fundraising and the New Zealand Government. This is used to enable the work of Red Cross in New Zealand and internationally.

We have audited the financial statements on pages 35 to 54. The financial statements provide information about the past financial performance of the New Zealand Red Cross Incorporated, which includes the New Zealand Red Cross Foundation Incorporated (together hereinafter referred to as the “Red Cross”) and its financial position as at 30 June 2010. This information is stated in accordance with the accounting policies set out on pages 41 to 44. This report is provided solely for your exclusive use and solely for the purpose of expressing an opinion on the financial statements for the year ended 30 June 2010. Our report is not to be used for any other purpose, recited or referred to in any document, copied or made available (in whole or in part) to any other person without our prior written expressed consent. We accept or assume no duty, responsibility or liability to any other party in connection with the report or this engagement, including without limitation, liability for negligence. National Board’s Responsibilities

The National Board is responsible for the preparation, in accordance with New Zealand law and generally accepted accounting practice, of financial statements which fairly reflect the financial position of the Red Cross as at 30 June 2010 and the results of its operations and cash flows for the year ended on that date. Auditor’s Responsibilities

It is our responsibility to express to you an independent opinion on the financial statements presented by the National Board. Basis of Opinion

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing: • the

significant estimates and judgements made by the National Board in the preparation of the financial statements, and

• whether

the accounting policies are appropriate to the Red Cross’ circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with New Zealand Auditing Standards. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to obtain reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Other than in our capacity as auditor and the provision of taxation services concerning fridge benefit tax, we have no relationship with or interests in the Red Cross. Qualified Opinion

In common with other organisations of a similar nature, control over revenues from cash donations prior to being recorded is limited, and there are no practical audit procedures to determine the effect of this limited control. Our work has been confined to testing receipts once recorded. In all other respects we have obtained all the information and explanations that we have required. In our opinion, except for adjustments that might have been found to be necessary had we been able to obtain sufficient evidence concerning cash donations, the financial statements on pages 35 to 54 fairly reflect the financial position of the Red Cross as at 30 June 2010 and the results of its operations and cash flows for the year then ended. Our audit was completed on 18 September 2010 and our qualified opinion is expressed as at that date.

CHARTERED ACCOUNTANTS, WELLINGTON, NEW ZEALAND 54

NEW ZEALAND RED CROSS ANNUAL REPORT 2010

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