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

2011 ANNUAL REPORT

NOV

MAR

SEPT

MAKING A REAL DIFFERENCE EVERYDAY

DEC

JUL

FEB

26.7.10

4.9.10

19.11.10

PAKISTAN

CANTERBURY

PIKE RIVER

HUMANITY IN A TIME OF ADVERSITY 2

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

26.12.10

22.2.11

11.3.11

QUEENSLAND

CHRISTCHURCH

JAPAN

These have been some of our darkest days. We have seen the forces of nature bend and at time break our environment, but through this adversity we have witnessed the power of humanity. From country to community to neighbourhood the human spirit has remained resilient. Our volunteers, members and staff are making a real difference every day. It’s what we do, it’s human nature. 1

What we’ve achieved at home and overseas

BREAKFAST IN SCHOOLS

COMMUNITY TRANSPORT

Community training participants

15,774 13,623

271,662 BREAKFASTS SERVED

Patients Transported

KIDS TAUGHT FIRST AID

2010: 285,429

2010: 10,059

2010: 10,973

MEALS ON WHEELS

RED CROSS SHOPS

FIRST AID

671,635

HOT MEALS DELIVERED

SHOPS

63,080 COURSE PARTICIPANTS

2010: 696,875

2010: 46

2010: 67,583

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

This year our organisation’s capabilities and resources have been stretched providing humanitarian support to those in need, yet usual community, national and international programmes continued.

EMERGENCY MANAGEMENT

Special Appeals Supported

AID WORKERS

11 58

19 TEAMS

DEPLOYED

2010: 21

2010: 15

2010: 55

SPECIAL APPEALS

Disaster relief and development

refugeeS supported

1,058 $71.2m $110.9m RAISED FOR EMERGENCIES

Dollars contributed

2010: $8.7 million

2010: $12.7m

2010: 529

For more information about what we’re doing at home and overseas go to www.redcross.org.nz/nz

NATIONAL PRESIDENT’S REPORT

The 2010/2011 financial year has been defining in the life of New Zealand Red Cross. Not since the devastating Hawke’s Bay earthquake in 1931 has New Zealand had to face the sort of disasters the power of nature is capable of delivering. Never before has our organisation been called upon to respond with such magnitude. Red Cross is all about humanity — the first of the Fundamental Principles of the International Red Cross and Red Crescent Movement is “to have concern for all humanity”. We are like a big family of people helping other people. Our strength lies in our ability to mobilise large numbers of members and volunteers to help those dealing with the frightening forces of nature. This power of humanity defines us and is what vulnerable people rely on. The expectations of the public of New Zealand have been enormous. However, I am indeed proud that once again our people have met those expectations, even when they themselves have had to make personal sacrifices. All have acted professionally and with compassion. I am so grateful to all of them. The September 2010 Canterbury earthquake, the Pike River Mine disaster and the catastrophic earthquake in Christchurch stretched our local resources dramatically in just one ten-month period. Even though those tragic events would have been difficult for any organisation to deal with, we managed to provide relief to numerous affected people and communities. This success was due to the amazing selfless actions of our own staff and members and all those who swelled our large body of volunteers on the ground. The worth of this human-to-human contact was demonstrated so clearly to me when I visited Christchurch soon after the quake and an elderly woman told me tearfully that she felt safe as soon as she realised Red Cross was there to help. The money donated to the Red Cross 2011 Earthquake Appeal is unprecedented. The generosity of donors from all over the country and overseas astounds us all. This fundraising doesn’t happen without huge effort by a great many people. The careful distribution of the funds is another enormous task that will continue into the next financial year. The Red Cross 2011 Earthquake Commission provided their time and expertise with the same generosity we received from so many in our earthquake response. During the same period that we experienced these devastating events, the governance of New Zealand Red Cross underwent significant changes after 18 months of consultation. In August 2010, 16 area councils were established to replace the six regional boards. This transformed the organisation’s membership structure. The aim of the changes was to make sure a closer link to local communities exists and to enhance communication and understanding between the organisation’s grass roots and national governance. The National Board was also, for the first time since 1993, elected at the National Council by delegates from each area council. So, in November 2010, a new Board was elected.

PENNY MASON National President

Still in its infancy, the new membership structure has been thoroughly tested by the events of nature that have changed our nation. The structure proved its worth when Red Cross was first required to respond to the September 2010 earthquake — despite it being early days for the structure’s formation. I am pleased that the rejuvenated Red Cross was able to step-up with an enhanced ability to mobilise volunteers to help on the ground and raise funds. The area council structure has attracted new people with fresh ideas and expertise, which bodes well for the future of New Zealand Red Cross.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

Above: Penny Mason in Christchurch soon after February’s earthquake.

CHIEF EXECUTIVEâ&#x20AC;&#x2122;S REPORT

The role of Red Cross in communities includes saving lives, protecting livelihoods and strengthening recovery from disasters and crises. We do this at home and internationally by having a best practice, effective and integrated emergency response capacity. Our ability to carry this out was tested by a multitude of natural disasters that took place this year. Earthquakes brought suffering and dislocation to thousands of Cantabrians. The forces of nature that took place on 4 September 2010, 22 February 2011 and again on 13 June 2011 were natural disasters on an unprecedented scale. These earthquakes and the continuous succession of further quakes and aftershocks over an extended period, required exceptional resilience from those affected. The response from Red Cross was swift and multi-faceted. It involved response teams assisting affected people at a community level â&#x20AC;&#x201D; from the establishment of a call centre, outreach into communities and water distribution, to assisting and registering displaced people and restoring family links. Our volunteers and staff displayed true humanitarian values and service to others and despite difficult personal circumstances for those based in Canterbury, they came out to help. We received assistance from many people including university students, customers of Genesis Energy, other service clubs and people who spontaneously volunteered and wanted to help. New Zealand Red Cross launched appeals immediately following the September and February earthquakes. The financial support from individuals, companies, communities, sporting and recreational clubs, and sister Red Cross national societies has been humbling and overwhelming. Thousands of donors put their trust in New Zealand Red Cross to make a difference with their money in a fair, timely and transparent way. We undertook to honour that trust and have so far assisted over 57,000 people with cash grants to meet identified needs. We did this through an independent commission made up of community leaders who volunteered their time to oversee the disbursement of donations. Sadly, other disasters, both here and overseas, required our involvement. In response to the mine disaster at Pike River, volunteer-manned welfare centres were established at the mine head and Greymouth. In the aftermath of the Queensland floods, New Zealand Red Cross teams assisted Australian Red Cross to manage this complex and devastating disaster. In responding to disasters we can draw on the capacity and knowledge of the International Red Cross and Red Crescent Movement. Red Cross is the largest international humanitarian organisation in the world and has 150 years experience responding to humanitarian needs caused by conflicts and natural disasters. We were grateful to receive assistance from other Red Cross societies in the Asiaâ&#x20AC;&#x201C;Pacific region in the aftermath of the Christchurch earthquake. We were able to reciprocate by assisting other societies and international communities in their time of need and we launched successful appeals in response to the Pakistan floods, the tsunami in Japan and the drought in the Horn of Africa. As well as our emergency management role, we are a provider and mobiliser of care and support to vulnerable individuals and communities. We do this by delivering practical community-based programmes targeted to meet identified needs. In New Zealand, we have continued to enhance a number of national community programmes, which are making real

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

differences to the lives of vulnerable people. A huge number of volunteers deliver ‘Meals on Wheels’ daily and transport vulnerable people to medical appointments. We have recently introduced a drug and alcohol peer education programme entitled ‘Save-a-Mate’, which is being taught in schools and community groups. We continue to recruit talented, enthusiastic and committed New Zealanders to our pool of international aid workers. During the year, our aid workers carried out humanitarian activities in many countries, as well as being involved in our response to the Christchurch earthquake. I want to thank our many hardworking and dedicated volunteers, members and staff for making a difference to those who need our help. Our ability to carry out our work is dependent on our human and financial resources. Inevitably, our ambitions as an organisation exceed our resources and capability. We plan to increase our resources by attracting new members and volunteers and by diversifying and expanding our financial resources. Above: John Ware acknowledges Red Cross volunteers and staff during his visit to Christchurch after February’s earthquake.

JOHN WARE Chief Executive

GOVERNANCE

OUR VOLUNTEERS, MEMBERS AND STAFF MAKE A REAL DIFFERENCE EVERYDAY

The National Council is the highest governing authority and may exercise all the powers conferred on New Zealand Red Cross. It meets once a year and from 2011 will comprise: the patron, the current Governor General; the National President and National Board; Counsellors of Honour; two youth representatives; two representatives from each area council; and a representative from the New Zealand Government who has speaking rights only. The National Board governs New Zealand Red Cross. The Board is mandated to implement the policies of the National Council to make sure New Zealand Red Cross operates efficiently and to carry out the organisationâ&#x20AC;&#x2122;s objectives within the parameters of these policies. In 2010, the National Council was made up of many members who were new to New Zealand Red Cross. The composition reflected a rejuvenated organisation and the enthusiastic council delegates brought a fresh approach to the annual meeting.

In line with the new Constitution, the National Board was elected by the delegates at the National Council. Two nominees were elected from each of the three territories. These territories were designated to make sure there is geographical spread of representation on the Board. The youth representative was also elected at the National Council and the Vice President was elected by the Board from within its elected membership in line with the revised Constitution. The National President continues in her position until the end of her second term in 2012. The Constitution requires that the Chair of the Audit and Risk committee is someone with specialist financial expertise. In June 2011, the Board co-opted a new member. The recruitment for the position was a thorough process and attracted many high calibre applications. With a new Board elected in November 2010, we said farewell to several long- serving board members who had given committed leadership to New Zealand Red Cross, including helping to bring the organisation through the September Canterbury earthquake and the tragedy at Pike River. We extend our grateful thanks to Dame Margaret Millard, John Evans, Paul Hawke and Ralph La Salle. In 2009/2010, a board charter was developed for New Zealand Red Cross that outlined how the Board would govern the organisation. The charter formed an integral part

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

of the induction for the new board members elected at last November’s National Council meeting, outlining the Board’s terms of reference, roles, conduct and tasks.

Left to right: Debby Butler, Paul Kiesanowski, Alan Webb, Brie Jessen (Youth Representative), Jenny McMahon, Penny Mason (President), Steve Osbourne, Ian McPherson, Paul Steere (Vice-President).

Constitution Sixteen area councils, all receiving an induction in August and September last year, have now been in place for 11 months. Their establishment was aimed at facilitating an improved communication process between grass roots level and the National Board. While there are still some teething issues, as there often are with new innovations, we are determined to make sure the area councils are successful and to secure a stronger future for New Zealand Red Cross. The members’ handbook remained a useful tool for providing guidance and information for members. The National Board approved a number of amendments as the need arose during the year, while the code of conduct, implemented in 2010, was also slightly modified. Members and Volunteers In 2009/2010, as part of the transformation process, a new membership process was established such that members were no longer required to belong to a branch. This has seen an increase in membership in the last year. These individual members participate in the democratic process of nominating and voting for the National Board, and branch and area officers.

Strategic Plan 2020 Strategy 2020 — the strategic aims of the International Red Cross and Red Crescent Movement — will largely determine the future priorities of New Zealand Red Cross. In adopting these aims, New Zealand Red Cross formed a strategic planning group made up of four senior managers and four National Board members. An extensive consultation process is underway including a survey of members and external stakeholders, strategy discussions with Board and management and consultations with members.

26 JULY 2010 PAKISTAN

IT WAS LIKE AN ARMY OF PEOPLE CAME FROM NOWHERE TO HELP...

ROBYN, CHRISTCHURCH

Pakistan, Queensland, Canterbury, Pike River, Christchurch and then Japan; a season of disasters that has tested the human spirit. But on their blackest days they saw Red. As part of the worldâ&#x20AC;&#x2122;s largest humanitarian organisation New Zealand Red Cross responds to disasters by helping those in need; this year has proven to be no exception. The power of humanity was exemplified when volunteers, members and staff worked long hours under sometimes demanding circumstances to support those most in need, while other Red Cross programmes and services continued uninterrupted. This year has shown the world we can never relax and must always be prepared to respond when the forces of nature strike.

4 SEPTEMBER 2010 CANTERBURY

26 DECEMBER 2010 QUEENSLAND

22 FEBRUARY 2011 CHRISTCHURCH

11 MARCH 2011 JAPAN

RESPONSE RELIEF

RECOVERY

70 4m 7.1

PERCENT OF COUNTRY AFFECTED

$882

PEOPLE MADE HOMELESS

FO DIS

MAGNITUDE EARTHQUAKE

670,000

TONNES OF EXPLOSIVES (FORCE)

“Mother Nature has unleashed something shocking out of the Toowoomba region. What we have here in Queensland is a very grim and desperate situation.”

480

ANNA BLIGH QUEENSLAND PREMIER

6.3 45

MAGNITUDE EARTHQUAKE THOUSAND EVACUATED

9.0

132

MAGNITUDE EARTHQUAKE

46,000

57,0

HOMES DESTROYED

SITUATION

SHELTER

2,091

NZ FUNDS RAISED

“In terms of total numbers of people affected, the Pakistan emergency eclipses other disasters of recent times such as Haiti and the Boxing Day tsunami”

OOD PARCELS STRIBUTED

$23.1m

KM WIDE CYCLONE YASI HITS

NZ EMERGENCY PERSONNEL SENT

FUNDS RAISED

$84.4m 700

2,510

000

FUNDS RAISED

HRS OF RESCUE & CASUALTY CLEARING

DEB, GRANT RECIPIENT

“When I first came here, I didn’t know anybody, but now I feel that I know them and realise people’s kindness”

BLANKETS

INSTANT NOODLES

PEOPLE

“Thanks from the very bottom of my heart. Honestly - I could cry with relief.”

HARUE ISHIGAMI stayed at Red Cross welfare centre

FOOD

MONEY

TIME

WARMTH

PAKISTAN

$882,091 RAISED 12 EMERGENCY PERSONNEL 289 VOLUNTEERS 6800 HOURS 132,510 BLANKETS 11,200,000 QUEENSLAND

CHRISTCHURCH

JAPAN

INTERNATIONAL

International operations As disasters around the world increase, our response to these emergencies and conflicts become a daily part of New Zealand Red Crossâ&#x20AC;&#x2122; International operations.

This year aid workers were sent to 23 countries often putting themselves in harmâ&#x20AC;&#x2122;s way and working in austere conditions to make a difference to those affected. The importance of recruiting, training and sending a high calibre of individuals around the world is paramount.

For many years New Zealand Red Cross and New Zealand emergency management authorities have been preparing to respond if a major disaster occurred at home. This planning involved the management and integration of international assistance into New Zealand.

The support from committed donors, both private and corporate, to New Zealand Red Cross ensures relief and financial contributions can be made to operations in Pakistan, Niger, Indonesia, Sri Lanka, Libya, and Japan.

Lessons learnt abroad were able to be put to use when responding to the devastating earthquakes in our own backyard. New Zealand Red Crossâ&#x20AC;&#x2122; staff and volunteers from across the globe came together to support those affected.

Closer to home first aid development, telecommunications training and core funding grants were made to Red Cross national societies in Samoa, Cook Islands Fiji, Tuvalu, Kiribati, Vanuatu, Tonga and the Solomon Islands. When the Australian Red Cross responded to bushfires, cyclones and floods that devastated Queensland, we were privileged and well-positioned to be able to assist. Twelve Red Cross staff from across the country were sent for over a month to relieve their counterparts in Queensland. They worked in co-ordination and welfare centres with the displaced and homeless. During our response to the Canterbury earthquakes this experience gained from Queensland proved invaluable.

Recovering from crises is just as important as responding to them. There is no short-term solution in recovering from a disaster and New Zealand Red Cross is committed to supporting those affected through this journey and will be there for the long-haul. This is true not only for Christchurch but also in our work in Laos, Afghanistan, Timor Leste and Vietnam.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

Enhanced efficiency means we can support a greater number of staff in the field at any one time, while improving the support for vulnerable communities affected across the globe.

Above: Woman and child seek solace at Pakistan Red Crescent

INTERNATIONAL

International operations RESTORING FAMILY LINKS A distressing effect of natural disasters is misplaced and displaced people who are unable to communicate with family and friends. The surge in Restoring Family Links (RFL) cases as a result of the Christchurch earthquake had a significant impact this past year, with Red Cross helping 832 people reconnect with loved ones. We utilised social media to connect with hundreds of IT savvy volunteers, most of whom had no previous involvement with Red Cross. Capitalising on their innovative ideas and technological skills, we registered over 50,000 people in the Public Registration and Inquiry Registration Database for Emergencies (PRIDE database). Leading response agencies such as the police and the National Crisis Management Centre used the PRIDE database as a vital source of information. Melissa Cloaire, a 23 year-old hazard management student, volunteered to help on the afternoon of 23 February. She initially managed a team of 20 data entry volunteers. Within days she led a team of 200. “One day we had 6,000 registrations — the next thing we knew it was 12,000”, Melissa said. “It was incredibly busy, but everyone was willing to help. It was quite amazing really.” With literally dozens of RFL cases resolved in the past 12 months, many families worldwide had their concerns eased.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

Left and above: Rockhampton evacuation centre.

QUEENSLAND

480

KM WIDE CYCLONE YASI HITS

200,000

PEOPLE AFFECTED

OUR RESPONSE APPEALS

$267,310 17

Humanitarian aid workers The list below is made up of aid workers who were supported by New Zealand Red Cross between 1 July 2010 and 31 June 2011. This list includes aid workers who ended missions in 2010/2011, as well as those with start dates in 2010/2011.

KEY AREAS

Libya Judy Owen Nursing Joyce Hood Nursing

Georgia HEALTH WORKERS Health Hospital Administrator Nursing Community Health First Aid Hospital Project Manager Physiotherapy

Andrew Cameron Heath Joyce Hood Health

Jordan Jodye Tomalin Security

Gaza Guru Dev Singh Nursing

Iraq

Economic Security

Andrew Cameron Hospital Project Manager Lindah Jury Health Janet Askew Health Gail Corbett Nursing Rachael Maunsell Health

Afghanistan

Security

Rachael Maunsell Nursing Barbara Turnbull Nursing Jaquee Dixon-West Nursing Louise Akavi Nursing

Tajikistan Graham Zinsli Health

Russia LOGISTICS Resource Mobilisation

Joyce Hood Health

Krygzstan Grant Hargreaves Logistics

Sudan Glenys Checchi-Ewans Community Health Janet Askew Health

EMERGENCY RESPONSE UNIT

Tunisia Bill Olsen IT and Telecommunications Emergency Response Unit

Yemen Daniel Cowley Economic Security

COMMUNICATIONS

Somalia/Kenya

IT and Telecommunications

Felicity Gapes Health

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

Pakistan Barbara Turnbull Nursing Hilary Cullen Health Glenys Checchi-Ewans Hospital Administrator Judy Owen Nursing Glenn Rose Monitoring and Evaluation Rebecca Barrell Nursing Amanda Scothern Pakistan Branch Development Ana Zarkovic Water and Sanitation

KEY AREAS

WATER AND SANITATION

Sri Lanka/Thailand Cheryl Campbell Physiotherapy Niall Shepherd Security

ASIA / Pacific ZONE Jane Edgar Water and Sanitation Melanie Ogle Resource Mobilisation Jeremy Francis Logistics Alan Bradbury Resource Mobilisation/ Monitoring and Evaluation

ORGANISATION Organisational development Head of Office Monitoring and evaluation Branch development

Timor-Leste Amanda Scothern Organisational Development Sue Chamberlain Organisational Development

Pacific Region

GENERAL AID WORKER

Rosemary Fenton Community Health Peter Winthrop First Aid

Tonga Terry Butt Organisational Development

SHELTER

Samoa Terry Butt Head of Office

Papua New Guinea Graham Zinsli Health

RELIEF

Cook Islands Jane Edgar Water and Sanitation

Solomon Islands Steve Davis IT and Telecommunications Emergency Response Unit

AID WORKERS SENT to Christchurch Dean Manderson Relief Jane Edgar Water and Sanitation Colleen Ruru General aid worker Michelle Dwight General aid worker Melanie Ogle Resource Mobilisation Greg Johns Relief Kevin Duignan Relief Douglas Clark Relief Janna Hamilton Communications

Haiti Kevin Duignan Shelter Denise Oakenfull Shelter

INTERNATIONAL

International Humanitarian Law The idea expressed in international humanitarian law is simple: even wars have laws. International humanitarian law (IHL) is a set of international rules that seek to limit the effects of armed conflict on people and objects to reduce suffering and damage.

Raising awareness and understanding of IHL and the Fundamental Principles is one of the key priorities of New Zealand Red Cross and is a crucial part of the unique mission of the International Red Cross and Red Crescent Movement. Monitoring the use of the protected emblems — the red cross, the red crescent and the red crystal — is also central to the IHL programme. New Zealand Red Cross has continued to build upon its reputation as a champion of IHL both at home and abroad and has engaged with government agencies and the general public on the promotion of IHL and protection of the Movement’s emblems. There have been a number of prominent activities undertaken within the IHL programme over the year. Protecting the Protectors Protecting the Protectors, a forum hosted by New Zealand Red Cross, the New Zealand IHL Committee and the University of Otago, examined the reasons behind the increase in attacks over the past decade and considered the legal and operational frameworks that exist to protect such workers. Member of Parliament David Shearer, the New Zealand Defence Force and the New Zealand IHL committee gave keynote presentations. Three New Zealand Red Cross aid workers spoke about working in conflict zones where the risk of personal attack and injury was an everyday reality. ‘Protecting the Protectors’ provided a valuable opportunity for participants to engage in discussions around the reasons for increased attacks, best practices and possibilities for better co-ordination. War Law The ‘War Law’ programme, a one-day workshop on IHL for school aged students, continues to grow, with plans to roll out the programme nationally in the coming year. 2010 saw ‘War Law’ run in Wellington for the second time, with 36 high school students from across the capital coming together to discuss issues that affect people in times of conflict. Hearing about the realities of working and living in conflict-ravaged countries came as a surprise to many. The conflict situation scenarios that were developed for the programme also gave students the chance to apply their IHL knowledge to real life situations.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

Our World at War ‘Our World at War’ — an International Committee of the Red Cross photo exhibition that had travelled to over 60 countries to celebrate 150 years of the Geneva Conventions — made its way to New Zealand in October 2010. The exhibition featured the work of five award-winning photojournalists, who went back to the conflict zones they had reported from to capture images of the impact of the wars on the everyday lives of the people. We are committed to strengthening our IHL programme both within the organisation and across key stakeholder groups in New Zealand. Our commitment includes developing a comprehensive research function to better inform our training modules and to partner with other groups in promoting issues of IHL.

Left: Selection of images as part of Our World at War photo exhibition.

NATIONAL

National operations A strength of New Zealand Red Cross is our ability to quickly respond to and provide support in emergencies, as was repeatedly the case last year. After a vulnerability study in 2007, New Zealand Red Cross identified that many children were going to school without breakfast, so we introduced a ground-breaking programme which provided a nourishing and nutritious breakfast to decile one primary school children. In recent years other providers have established similar initiatives and we have taken the opportunity for our programme to be incorporated into the “Kick Start” breakfast programme which has a wider reach, with breakfast being served to children in decile one to four schools. An urgent need to teach young people how to cope with the challenges of life was highlighted this past year, with more and more stories of young people’s interactions with drugs and alcohol making headlines. In response to this changing need, Red Cross remodelled our Save-a-Mate course to a targeted New Zealand specific course. This will roll out over the coming year.

To address a growing demand we expanded several of our existing programmes, such as community transport into Dunedin, community gardens in Auckland and Wairarapa, and refugee support in Taranaki. We also ran No Limits, a fun, educational youth emergency preparedness programme in the Taranaki area.

community programmes such as Meals on Wheels and Community Transport, was a huge operational challenge that stretched our people’s capabilities and resources. But, by remaining focussed and working cohesively as a team, we remained committed to making sure that we gave the best possible delivery to vulnerable people who relied on us.

As part of our on-going strategy to better connect with younger people, we have established University and youth action groups. By tapping into the talents and skills of youth, we hope to enhance Red Cross’ functions through activities such as debates and engagement programmes.

The skills and knowledge gained in Australia were put to great use in our own communities during our response to the natural disasters this year. The scale of the response in Christchurch brought other challenges. Managing high volumes of spontaneous volunteers, harnessing them as on-going volunteers with Red Cross and providing a good induction and appropriate recognition was just one example.

It has been an unprecedented year of natural disasters — a time when the human spirit has certainly been tested. Providing humanitarian support to Australian Red Cross during the Queensland floods and the Canterbury community following the September, February and June earthquakes, while still maintaining our usual national and

Above right: Meals on Wheels were delivered during Canterbury earthquake.

Our current members and volunteers remain key to our success. Working closely together, their involvement has enabled us to be there when communities need us and strengthen the organisation in these times of need. Over the next year, we will continue to provide national and community based programmes that align with Red Cross’ mission and the Fundamental Principles of the International Red Cross and Red Crescent Movement. We will make sure all our programmes are based on sound research and are sustainable. We want to work more closely with the community and Red Cross area councils to provide tailored services that are driven by local community needs. We will continue doing what we are doing “no matter what”. We are heading in the right direction, making a difference to the lives of those most in need.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

MEALS ON WHEELS HOT MEALS DELIVERED

2009

759,532

2010

696,875

2012 (forecast)

2013 (forecast)

2011

2012 (forecast)

2013 (forecast)

2011

2012 (forecast)

2013 (forecast)

2011

671,635

650,000

COMMUNITY TRANSPORT PATIENTS TRANSPORTED

2009

9,766

2010

10,059

15,774

18,000

SAVE-A-MATE COURSES

2009

2010

â&#x20AC;&#x153;Every single individual who is involved is impacted and that ricochets and goes home with them.â&#x20AC;? Kristen Proud Australian aid worker

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

CHRISTCHURCH 22 FEB 2011

6.3

MAGNITUDE EARTHQUAKE

50,000

REGISTERED ON PRIDE DATABASE

RED CROSS RESPONSE

$84.4m 289

FUNDS RAISED

VOLUNTEERS

6800

HOURS

275,000 57,000

LITRES OF WATER

cash grants paid

NATIONAL

People and capability People and their capabilities are the back-bone of New Zealand Red Cross. Capable members, volunteers and staff were never more needed than over the last year. Making sure New Zealand Red Cross has the right people in the right roles — both paid and unpaid — doesn’t just happen. Planning, robust decisionmaking, good training and development are fundamental to making sure we operate as a well-tuned team, both during business as usual and our immediate response to and recovery following a disaster. Developing leadership is important in every organisation. In a constantly changing environment, our leaders need to be prepared and equipped to meet the challenges of managing the organisation and responding to vulnerable people. At this time last year, a decision was made to put more resources into building leadership and capability within New Zealand Red Cross. We took a planned and targeted approach, focussing on three groups: our national management team; our front line managers, including all area managers; and the people who manage volunteers. This planned and targeted approach had to remain flexible and fluid to accommodate the Canterbury earthquake, the Pike River tragedy and Christchurch earthquake. Members of our national operations team also responded to the Queensland floods and we were able to gain from this experience by incorporating it into their learning and development. In April we commenced a series of workshops covering communication, decision-making, tough conversations and being business savvy.

The aim of the workshops was to give our managers more skills and resources to do their jobs well. Using an innovative approach to the design of the training, we were able to build our managers’ knowledge of new policies and procedures around recruitment and performance management, while at the same time helping to enhance their decisionmaking and ability to have tough conversations. Twenty-four managers participated and gained a lot from this opportunity. It was particularly beneficial to have them all in the same room sharing information and learning from each other. By this stage they also had some very real and relevant experience gained from responding to emergencies in Australia and New Zealand. This unplanned experience combined with what we were able to provide in the classroom has been invaluable. It means our managers are now in the best position to help deliver the recovery programme for Christchurch. In late 2010, a group of our people who manage volunteers were offered specific development and training. We had the opportunity to pilot a six-week, online, tutor-supported programme that assisted these managers and co-ordinators, both paid and unpaid, to work with volunteers. We think it is important that we look after our volunteers and use best practice in recruiting and recognising them. So, it is equally important that we are skilled at managing them. Again, the worth of this training was showcased

when both our long-serving and spontaneous volunteers responded in Canterbury, Greymouth and Christchurch. The national management team also focussed on leadership development this year. The team have met three times, exploring teamwork, leadership and working strategically. We also made an individual coach for each national management team member available to work on the strategic issues that New Zealand Red Cross face and to understand how the work we all do impacts the whole organisation. In the coming year, we will build on what we have achieved so far in leadership development with a succession-planning programme to manage talent. This talent management and succession planning are fundamental to leadership development. In 2012, we will begin a programme that will identify talent pools at New Zealand Red Cross. This process will give us direction and help us plan our succession strategy and identify further development needs. It will also enable us to enhance our recruitment processes as we will, for the first time, have a clear picture of the organisation’s skill and knowledge gaps.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

Right: New Zealand Red Cross checks on the Welfare of residents following the Christchurch earthquakes.

NATIONAL

Education and training New Zealand Red Cross’ first aid course structure has undergone a major change — its first in ten years. Based on new unit standards and New Zealand Qualifications Authority (NZQA) training requirements, our educational and training team developed courses to provide a greater choice for our clients. These new training courses were launched on 18 April 2011. They included a teaching DVD and curriculum, with new look course material designed to deliver professional training.

Before the launch of the new training courses, the lack of compliance in the delivery of first aid training throughout New Zealand had been a challenge. With NZQA training requirements not released until December 2010, a number of first aid training providers reduced course-teaching times to attract clients looking for shorter duration training. This had a serious impact on our business, but we were not prepared to offer courses of shorter duration than specified by the Department of Labour. In December 2010, NZQA released ‘First Aid as a Life Skill’ that gave clear course duration times and assisted in re-establishing a national criteria. Once the training requirements were released, course participant numbers started to return to normal. The September 2010 and February 2011 earthquakes also had a major impact on our first aid business in Christchurch and to some extent in the other centres. Training facilities became Red Cross logistics and resource centres used by the emergency response teams to assist affected people. First aid instructors were assigned tasks directly relating to assisting people affected by the disaster. Red Cross continues to be the leading provider of first aid training in New Zealand, delivering quality training to meet the needs of clients. ‘Know it before you need it’ is our training theme. Through regular feedback and revalidation courses, our training has proven invaluable with stories of people using their first aid training skills to provide assistance and save lives. This was certainly the case during the Christchurch earthquake when members of the public were called upon to use these skills on friends, colleagues and even strangers. A Tauranga man, Mark Walley, 47, just seconds from death after suffering a sudden cardiac arrest at a gym, was saved only by quick-thinking staff members and a newly purchased defibrillator from Red Cross. “I am the luckiest man alive, obviously. The way that everything stacked up in my favour ... the fact the machine had been in the gym 10 days, the fact the staff had just been on a refresher course, it all means I am here today”.

Left: Tauranga man Mark Walley holds the defibrillator trainers Fiona Norton (centre) and Lynley McBride used to save him at Papamoa’s Ocean Blue Gym.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

COURSE PARTICIPANTS FIRST AID

2009

68,668

2010

2011

2012 (forecast)

2013 (forecast)

2010

2011

2012 (forecast)

2013 (forecast)

67,583

63,080

70,000

77,000

AED SALES

2009

114

177

Stories like this and an increased public awareness of the benefit of early defibrillation for sudden cardiac arrest have meant that sales of the Powerheart AED G3 Plus — exclusively sold by New Zealand Red Cross — substantially increased this year. Another highlight this year was the opening of the Auckland City Training Centre at 175 Khyber Pass Road on 28 July 2010, which offers specifically designed facilities in a central location that can support and service clients from the north, east and west part of the city. We also have stand-alone training centres at Greymouth and Queenstown. In 2011/2012, we aim to improve our customer service by offering a wide variety of solutions to meet our clients’ first aid needs, including first aid kits and AEDs. XRM, our clientmanagement system database, will be enhanced to improve website bookings.

200

230

Subject to NZQA approval, we will be introducing opportunities for online learning supported by face-to-face training. This will give our clients more options to meet their training needs. New Zealand Red Cross aims to continue to be the leading provider of first aid training in New Zealand. New targets will make sure that the number of training courses and participants continue to grow. Our strategic aim is to save lives, protect livelihoods, and strengthen recovery from disasters and crises. With good workplace safety plans, livelihoods are well protected. Having being reviewed by NZQA and graded as ‘highly confident’ in both Educational Performance and SelfAssessment, we know that our courses meet the needs of our learners and educational outcomes.

NATIONAL

Fundraising, corporate partners It has been a year like we have never seen, with a record number of emergency appeals, yet New Zealanders continued to dig deep into their pockets to assist others. This generous support for domestic and international emergencies has seen more than $110 million donated to our general funds and the launch of six new emergency appeals.

The response to the September and February earthquakes was unprecedented. The scale of fundraising activity tested our resources as queries and donations from individuals, groups running community events and companies came flooding in. It was a global response to a local disaster as New Zealanders across the world rallied together to raise money for the people of Christchurch; events were held in New York, in Tanzania a group of Kiwis climbed Mount Kilimanjaro and a fundraising rugby match was held at Twickenham. Right here in New Zealand, every café, shop, restaurant, school and community group seemed to be raising money for Red Cross. Our profile soared and we now have thousands more individuals and companies who understand and have an affinity to the work of Red Cross. Companies such as the New Zealand Post Group, Datam and ASB offered their services and allowed us to develop our fundraising campaigns to become more efficient during our response to the earthquakes. The last six months of the year saw the fundraising team manage four simultaneous appeals: Australian Floods Fund, 2011 Earthquake Appeal, Middle East North Africa Appeal and the Japan Earthquake and Tsunami Appeal 2011, while continuing to raise money for general funds through our normal fundraising activities. In March we held our most successful annual appeal in memory. This had the theme ‘See Red’ highlighted by huge billboards and striking posters and press adverts; with volunteers across the country collecting money we raised over $1.9m for the Earthquake appeal.

Our ‘Project Partners’ programme is now in its eleventh year and continues to grow. We work with an agency called Cornucopia to engage with members of the public at their homes, on the street or at a shopping centre asking them whether they can support us with a monthly gift. Over 9000 new partners signed up to support our work and we now have over 21,000 donors who are helping to fulfil our mission, raising nearly $5m this year. Regular giving is a key element of our fundraising strategy and is one of our most predictable and stable sources of income. Our direct mail campaigns have achieved continued success. Our Annual Appeal direct mail raised over $600,000 and our May direct mail over $400,000. Both exceeded expectations, attributable to a more sophisticated approach and the recent heightened engagement of our donors in the great work that Red Cross does here in New Zealand. The support that community groups provided us this year has been tremendous, with local and international fundraising activities contributing to the significant total Red Cross raised to assist vulnerable people. In 2011/2012, we plan to support the delivery of the strategic priorities of New Zealand Red Cross through a diverse portfolio of fundraising activities. We will focus on sustainable future funding and a commitment to long-term financial growth. Finally, we hope to be increasingly donorfocussed through dedicated supporter care and relationship management by implementing a new sophisticated database.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

JAPAN 11 MAR 2011

9.0

MAGNITUDE EARTHQUAKE

1.5

MILLION PEOPLE WITHOUT WATER

OUR RESPONSE APPEALS

$715,682

KEY PARTNERSHIPS Purex Purex is a proud community partner of New Zealand Red Cross and the official sponsor of the Red Cross Annual Appeal. With the support of Purex, New Zealand Red Cross cares for our local communities and rapidly responds to emergencies with welfare, programmes and a vast volunteer network. By simply choosing Purex you are supporting the work of New Zealand Red Cross. Together we can build stronger communities and care for vulnerable Kiwis wherever help is needed. New Zealand Post Group New Zealand Red Cross has joined forces with the New Zealand Post Group. When a natural disaster affects areas in New Zealand and the Pacific, more than 300 PostShop Kiwibank stores will accept cash donations either into a dedicated New Zealand Post Disaster Relief Fund or donation boxes. New Zealand Post matched donations from staff dollar-for-dollar to donate $100,000 to the Red Cross 2011 Earthquake Appeal. As the official partner of New Zealand Red Cross for disaster relief, New Zealand Post did more than just wear red; among other things, they provided a Freepost address for donations, postage paid envelopes for receipts and handled all Red Cross inbound and outbound mail for the appeal. Country Road Fashion Trade is our exciting partnership with Country Road, which increases the quality and amount of pre-loved clothing being sold in our Red Cross shops around New Zealand. Celebrating its one-year anniversary, Fashion Trade has helped keep unsold clothing out of landfill and contributed over $22,000 to help New Zealand Red Cross assist vulnerable people in the community. Country Road customers have donated over 4500 garments weighing over 2000 kilos to Red Cross shops.

NATIONAL

Red Cross shops

Red Cross retail aims to maximise sales of quality donated goods by providing excellent customer service in a friendly, modern and professional environment that recognises voluntary service. RED CROSS SHOPS

Every dollar raised in our shops helps the community. This year we achieved a surplus $1.3m and opened four new Red Cross shops, which although less than the eight planned, it was a considerable achievement.

2009

2010

2011

2012 (forecast)

At 12.51pm on 22 February in our High Street Shop, the co-ordinator Becky, four volunteers and three customers, with nowhere to hide, crouched on the floor in terror as the deadly February earthquake struck Christchurch. Becky, knowing there would be an aftershock, told the group to stay down, and then once the aftershock was over, urged them all to run. As they went out the door, Becky turned the alarm on and locked the door. “I don’t know why I did that. I didn’t think. I was on autopilot; it’s what I did when I closed every day.” She then took two of the volunteers home, in a nightmarish four-hour journey, ending when she ran out of petrol. Becky wasn’t able to get home that night, or for several days. Less than a week later, Becky was back working for Red Cross, at Church Corner Shop. High Street is in the Red Zone, unable to be accessed since the earthquake and closed until at least February 2012. But, for Becky, the power of humanity won.

Over the next year, seven additional Red Cross shops are planned to open, increasing the Red Cross footprint. We plan to add another six stores per year over the next two years, giving us 69 stores. Then we will begin a refurbishment programme on existing stores. Finding volunteers to work at our stores is always a challenge, as they are required to work every week, on a regular shift. We are constantly seeking to recruit new volunteers, offering a training programme through the New Zealand Retail Institute to attract people, who may use the qualification to gain employment. Of our 1000 strong workforce in retail, only two per cent are paid and the rest are volunteers. We will be embarking on a major training programme for all our volunteers, both in terms of Red Cross knowledge and retail knowledge. This will naturally take time to complete, as our seven new stores will be adding over 250 extra volunteers to the mix.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

NATIONAL

Marketing and Communications

Four simultaneous appeals and six disasters tested us all this year. It truly has been a season of disasters: Pakistan, Canterbury earthquake, Pike River, Queensland Floods, Christchurch earthquake and then the Japanese earthquake and tsunami. Some of our teams had barely returned from one disaster before being thrust into another. For New Zealand Red Cross’ communications and marketing team, which includes advocacy and policy, several milestones were achieved. These milestones included the development of new policies for advocacy, media, social media and a full review of current publications with an aim to create new ones for the 2011/2012 year. A new website was created in response to February’s Christchurch earthquake, which provided information and support around 2011 appeal grants. Support was given to the New Zealand Red Cross Recovery Working Group. This group was established to develop the following: a recovery framework that aligns to the needs and capabilities of

the people of Canterbury, national and international planning and policy documents, and ways in which Red Cross will be involved in the medium to long-term recovery. The communications and marketing team also supported various core activities such as fundraising, international operations, corporate partnerships, first aid and retail, as well as undertaking media training with senior management and staff. Other key activities involved the expansion of social media, including developing a new Facebook page used to call to action spontaneous volunteers during the Christchurch earthquake. And a new interactive Red Cross Facebook page will also be launched soon. New Zealand Red Cross brand has never been so highly visible than it has been over the last year. The communications and marketing team will take advantage of this visibility by highlighting real people making a difference every day, despite the power of nature.

Right: New Zealand Red Cross’ new Facebook page.

FOR THE YEAR ENDED 30 JUNE 2011

Statement of Service Performance Actual

Planned

Actual

Planned

Actual

Planned

Actual

2011

2010

2009

2008

International Programmes 58

259

280

260

300

290

330

350

n/a

$3.7M

$8.4M

$6M

$4.2M

Development Programmes Supported

Development Grants to Pacific National Societies

Aid worker deployments achieved Aid worker deployment months achieved Number of IT&T ERU Technician missions achieved. Number of International Special Appeals supported

Contributions to International Special Appeals 1

Restoring Family Links requests administered Disaster Relief Family Kits Stored

1,500

1,000

n/a

48,823

12,809

9,766

10,200

14,699

Emergency Management Number of Operational Red Cross Response Teams Restoring Family Links requests administered (Christchurch) 1 Community Programmes Develop new National Programmes Community Training participants Meals on Wheels delivered Refugees supported IHL seminar/training participants Breakfasts served in Decile 1 schools Patients transported in community transport programmes

13,623

15,202

10,973

671,635

729,233

696,875

1058

822

529

265

1,072

750

938

1,080

855

865

650

4,962

271,662

310,484

285,429

213,938

213,939

190,000

70,540

15,774

11,133

10,059

7,889

7,874

7,500

759,528 759,532

750,000 747,731

Education and Training Maintain registration as PTE Commercial Training Participants

Yes

63,080

70,313

67,583

73,033

68,668

70,907

64,357

Retail Number of shops (including Branch Shops) New shops opened

Notes 1 Targets not set for these measures

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

Financial Summary It is a pleasure to present the financial accounts for the year ended 30 June 2011. This last year has been an extremely busy time for our organisation with an extraordinary focus on delivering support to the people of Canterbury so critically affected by the consequences of two devastating earthquakes, while also continuing to deliver and support our complete range of community services and other international aid programs to the vulnerable. On reviewing the statement of financial performance it can be noted that New Zealand Red Cross consolidated recorded a surplus of $46.7 million as compared to a surplus of $2.9 million for the previous year. This surplus is substantially due to Canterbury earthquake donations which exceeded disbursements by $44.2 million and this sum has been transferred to the Christchurch Reserve as detailed in Note 12. All other activities including international programs reflected a surplus of $2.5 million. Future years are likely to reflect deficits as the balance of the Christchurch reserve is distributed. In addition to the operating surplus, Other Comprehensive Income of $2.0 million was recorded and is largely due to new property valuations. This compared favourably to last year’s negative property adjustment of $1.0 million. New Zealand Red Cross Foundation (the Foundation) has continued to be a successful investment arm of the Society and this is evident from the $1.6 million that it has added to the consolidated result in the current year. This is slightly up on last year and very satisfactory in the face of reduced interest rates from those enjoyed previously.

CHRISTCHURCH RESERVE

It can be observed from the detail in Note 12 that through the extraordinary generosity of the New Zealand public, corporate and government sectors together with other Red Cross national societies and international corporations that New Zealand Red Cross appeals for Christchurch were entrusted with donations totalling $107.5 million. As at 30 June 2011 New Zealand Red Cross had paid grants of $61.9 million and expended $1.4 million in initial response and recovery costs. It is anticipated that due to the complexities and scale of the disaster that it may take in excess of five years to responsibly deliver aid to the affected communities of Christchurch. OPERATING ACTIVITIES

The net surplus from trading activities was $2.0 million. This represents a 24 per cent decrease from the previous year which was largely attributable to a decrease in training revenue and while offset by an increase in AED sales the lower margin resulted in reduced surplus. Increased returns from interest and dividends partially offset these costs. Net income from fundraising (before legacies and special appeals) totalled $8.6 million, which was 11 per cent above the previous year. This reflected a significant increase in the generous support of regular monthly donors and contributors to our direct mail campaigns which more than offset the cost of transferring our annual appeal collection to the Christchurch special appeal. CORE ACTIVITIES

During the year we spent a total of $74.9 million on our core humanitarian activities. While the majority was for Canterbury $8.0 million was spent on other disaster relief activities and $3.2 million on community activities including Meals on Wheels, Community Transport, Breakfast in Schools and Community Training. $0.5 million was spent on domestic Emergency Management and International Humanitarian Law.

Much of this work is achieved in New Zealand through the substantial efforts of our branch members and volunteers without the support of which our achievements would be significantly diminished. The branches also contribute financially through a broad range of revenue generating activities, including the annual appeal, special appeals, book sales, property rentals, lottery sales and Meals on Wheels. A direct contribution to the total surplus for the year from branches is a sum of $321,000. This does not however include all donations collected by branches as part of the annual appeal for the benefit of Christchurch residents. STATEMENT OF FINANCIAL POSITION

Accumulated funds at 30th June 2011 were $52.8 million after consolidating funds from the Foundation, an increase of $2.6 million over the previous year. The total funds including restricted funds, the Christchurch reserve and the asset revaluation reserve, were $111.0 million, an increase of $48.6 million over the previous year. Our investments of $36.1 million 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 activities and are managed by the Foundation. Consolidated Net Assets at 30th June 2011, were $111.0 million (2010, $62.3 million) which includes cash $53.8 million (2010, $9.1 million) property, plant and equipment of $23.3 million (2010, $21.6 million) and investments of $36.1 million (2010, $35.8 million).

FOR THE YEAR ENDED 30 JUNE 2011

Statement of Financial Performance NewÂ Zealand Red Cross Consolidated 2011

2010

2011

2010

$'000

10,652

10,064

10,652

10,064

Expenditure on trading activities

8,634

7,397

8,634

7,397

Surplus from Trading Activities

2,018

2,667

2,018

2,667

Income from administration activities

3,739

2,254

3,656

2,372

Expenditure on administration activities

6,168

5,242

6,075

5,147

(2,429)

(2,988)

(2,419)

(2,775)

(321)

(401)

(108)

123,233

19,818

123,233

19,694

2,744

2,958

2,876

2,958

Surplus from Revenue Generation Activities

120,489

16,860

120,357

16,736

Surplus Available for Core Activities

120,078

16,539

119,956

16,628

Expenditure on core activities

74,888

15,506

74,888

15,506

Surplus after Core Activities

45,190

1,033

45,068

1,122

Note Trading Activities

Income from trading activities

Administration Activities

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

(411) 3

Income from revenue generation activities Expenditure on revenue generation activities

Core Activities

Net gain/(loss) on sale of assets

(20)

Capital gain on sale of buildings

235

1,491

1,676

46,684

2,924

45,071

1,337

Changes in fair value through profit or loss for investments Total Surplus for the Year

NewÂ Zealand Red Cross Excluding Foundation

The notes on pages 42 to 56 are an important part of, and should be read in conjunction with these financial statements.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

FOR THE YEAR ENDED 30 JUNE 2011

Statement of Comprehensive Income New Zealand Red Cross Consolidated Note Total Surplus for the Year

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$'000

46,684

2,924

45,071

1,337

Other Comprehensive Income

Revaluation of land and buildings Transfer of special appeals to restricted funds Other Comprehensive Income for the Year Total Comprehensive Income for the Year

1,604 361 1,965 48,649

(1,000) (1,000) 1,924

1,604 361 1,965 47,036

The notes on pages 42 to 56 are an important part of, and should be read in conjunction with these financial statements.

(1,000) (1,000) 337

FOR THE YEAR ENDED 30 JUNE 2011

Statement of Changes in Equity New Zealand Red Cross Consolidated Accumulated Funds

Restricted funds

Christchurch Reserve

Asset Revaluation Reserve

Total funds

$’000

47,284

2,183

11,244

60,711

2,924

(1,000)

(307)

Closing Funds 30 June 2010

50,208

2,183

9,937

62,328

Opening Funds 1 July 2010

50,208

2,183

9,937

62,328

Total comprehensive income for the year

46,684

361

1,604

48,649

(44,204)

44,204

(146)

146

238

(238)

2,452

44,204

11,541

110,977

Accumulated Funds

Restricted funds

Christchurch Reserve

Asset Revaluation Reserve

Total funds

$’000

31,829

2,183

11,244

45,256

1,337

(1,000)

(307)

Opening Funds 1 July 2009

Total comprehensive income for the year Transfer to Profit and Loss

Transfer to Christchurch reserve Transfer to restricted funds Transfer from restricted funds Closing Funds 30 June 2011

52,780

1,924 (307)

New Zealand Red Cross Excluding Foundation

Opening Funds 1 July 2009

Total comprehensive income for the year

Transfer to Profit and Loss Closing Funds 30 June 2010

33,166

2,183

Opening Funds 1 July 2010

33,166

2,183

Total comprehensive income for the year

45,071

Transfer to Christchurch Reserve Transfer to restricted funds Transfer from restricted funds Closing Funds 30 June 2011

337 (307)

9,937

45,286

9,937

45,286

361

1,604

47,036

(44,204)

44,204

(146)

146

238

(238)

34,125

2,452

44,204

11,541

The notes on pages 42 to 56 are an important part of, and should be read in conjunction with these financial statements.

92,322

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

AS AT 30 JUNE 2011

Statement of Financial Position New Zealand Red Cross Consolidated Note

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$'000

Funds

52,780

50,208

34,125

33,166

Restricted funds

2,452

2,183

2,452

2,183

Christchurch reserve

44,204

11,541

9,937

11,541

9,937

110,977

62,328

92,322

45,286

Accumulated funds

Asset revaluation reserve Total Funds Represented By: Current Assets

Cash and cash equivalents

53,809

9,107

49,467

5,811

Receivables

1,986

1,222

1,925

1,416

1,047

543

1,047

543

6,349

4,034

138

129

63,191

14,906

52,577

7,899

Inventory - finished goods Investments - current Total Current Assets Current Liabilities

Payables

1,567

1,381

1,430

1,360

Provisions for employee entitlements

752

521

752

521

3,296

3,640

3,296

3,640

276

273

276

273

861

5,891

6,676

5,754

6,655

57,300

8,230

46,823

1,244

29,792

31,751

21,614

21,695

Property, plant and equipment

23,275

21,600

23,275

21,600

Intangible assets (software)

Provision for Samoa recovery project Grants received in advance Special appeals

Total Current Liabilities Net Current Assets Non Current Assets

Investments – non current

Total Non Current Assets

634

771

634

771

53,701

54,122

45,523

44,066

110,977

62,328

92,322

45,286

Non Current Liabilities

Licences to occupy Total Non Current Liabilities Net Assets

For and on behalf of the National Board who authorised the issue of these financial statements on 17 September 2011.

PENNY MASON National President

JOHN WARE Chief Executive

The notes on pages 42 to 56 are an important part of, and should be read in conjunction with these financial statements.

FOR THE YEAR ENDED 30 JUNE 2011

Statement of Cash Flows NewÂ Zealand Red Cross Consolidated

NewÂ Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$'000

10,139

10,259

10,588

10,259

1,160

122

2,315

872

15,628

20,028

15,628

19,871

107,477

2,050

1,605

1,427

1,401

449

380

136,903

32,394

137,435

32,403

Cash Flows from Operating Activities

Cash was provided from: Trading activities Administration activities Revenue generation activities Christchurch appeals Interest income Dividend income Cash was applied to: Trading activities

(8,797)

(7,557)

(8,797)

(7,557)

Administration activities

(4,998)

(4,681)

(5,513)

(4,591)

Revenue generation activities

(2,786)

(3,021)

(2,786)

(3,021)

Core activities

(12,362)

(11,919)

(12,362)

(11,919)

Christchurch appeals

(63,273)

(92,216)

(27,178)

(92,731)

(27,088)

Net Cash Inflow from Operating Activities

44,687

5,216

44,704

5,315

3,441

4,005

1,239

1,411

807

3,525

4,812

1,323

2,218

Purchase of investments

(2,304)

(4,050)

(1,165)

(2,067)

Purchase of property, plant and equipment

(1,206)

(1,571)

(1,206)

(1,571)

(3,510)

(5,621)

(2,371)

(3,638)

(809)

(1,048)

(1,420)

44,702

4,407

Cash Flows from Investing Activities

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

Net Cash flow from Investing Activities Net Increase in Cash Held

43,656

The notes on pages 42 to 56 are an important part of, and should be read in conjunction with these financial statements.

3,895

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

FOR THE YEAR ENDED 30 JUNE 2011

Statement of Cash Flows NewÂ Zealand Red Cross Consolidated

Net movement in cash held

NewÂ Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$'000

44,702

4,407

43,656

3,895

9,107

4,700

5,811

1,916

53,809

9,107

49,467

5,811

Cash and cash equivalents

53,809

9,107

49,467

5,811

Ending Cash Carried Forward

53,809

9,107

49,467

5,811

45,071

1,337

Add opening cash brought forward Ending Cash Carried Forward This is represented by:

Reconciliation of Operating Cash Flow with Total Surplus Reported Total Surplus for the Year

46,684

2,924

Add Non Cash Items

Depreciation on property, plant and equipment Amortisation (software) Transfer of special appeals to restricted funds

1,038

787

1,038

787

176

(147)

1,067

856

1,067

417

301

856

Add/(Less) Movements in Working Capital Items

Movement in accounts payable and provisions Movement in grants in advance

83 11

Movement in special appeals

(697)

3,413

(697)

3,413

Movement in accounts receivable

(764)

(44)

(509)

(24)

Movement in inventories

(505)

(128)

(505)

(128)

(1,546)

3,345

(1,407)

3,355

Add/(Less) Items Classified as Investing Activities

Net Loss on sale of property, plant and equipment Capital gain on sale of buildings Movement in accounts payable - property, plant and equipment Changes in fair value through profit or loss for investments Net Cash Inflow from Operating Activities

(3) -

20 (235)

(24)

(18)

(1,491)

(1,676)

(1,518)

(1,909)

44,687

5,216

(3) (24) (27) 44,704

The notes on pages 42 to 56 are an important part of, and should be read in conjunction with these financial statements.

20 (235) (18) (233) 5,315

FOR THE YEAR ENDED 30 JUNE 2011

Notes to the Financial Statements 1. Summary of Accounting Policies

Basis of Preparation

These consolidated financial statements and the accompanying notes summarise the financial results of activities carried out by New Zealand Red Cross Incorporated (“Red Cross”). The reporting entity comprises the offices of New Zealand Red Cross and 96 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 the investments of Red Cross and invest these funds on behalf of Red Cross to generate a source of sustainable income. The Foundation is controlled by Red Cross and is therefore consolidated in these financial statements.

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 – international or in our own communities. The mission of Red Cross is to improve the lives of vulnerable people by mobilising the power of humanity and enhancing community resilience. Our fundamental principles are: ·· humanity ·· impartiality ·· neutrality ·· independence ·· voluntary service ·· unity ·· universality Red Cross shares our fundamental principles with 185 other National Red Cross and Red Crescent societies. Statement of Compliance

Red Cross is a society incorporated under the Incorporated Societies Act 1908. The 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 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 17 September 2011.

·· 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 and donations. Refer note (n). 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 there is no separation between the owners and the governing body. 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. Standard and Interpretations Effective in the Current Period

There are no new standards or interpretations effective in the current period that had any impact on the financial statements. 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 materially from the judgements, estimates, and assumptions.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

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, and (b) The fair values of land and buildings are subject to judgement as the fair values are determined by an independent valuer with reference to market evidence of transaction prices and market rental yields for similar properties. 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 and Reserves Funds comprise Accumulated Funds, Restricted Funds (as detailed in Note 11), Christchurch Reserve (as detailed in Note 12) and the Asset Revaluation Reserve. Accumulated Funds are those received and used for those general purposes which are the responsibility of the National Board. Restricted Funds are funds that have been restricted by the donor or by the National Board as to their use. Christchurch Reserve represents the balance of funds held from the two earthquake appeals launched in September 2010 and February 2011. Asset Revaluation Reserve represents the balance of funds built up through the upward revaluation of land and buildings.

(e) Financial instruments Financial Instruments Financial instruments include financial assets (cash, receivables and investments) and financial liabilities (payables, provision for employee entitlements, provision for Samoa recovery project, 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 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. 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 held for trading and therefore upon initial recognition are classified as fair value through profit or loss as these investments are managed and their performance is evaluated on a fair value basis in accordance with the Foundation’s 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 using the effective interest method. (f) Goods and 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.

(g) Impairment of Assets

(l) Payables

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).

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.

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 Financial Performance immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have 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 Financial Performance 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.

Land and buildings are measured at fair value. Fair value is determined on a rolling cyclical 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 Financial Performance, in which case the increase is credited to the Statement of Financial Performance to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of land and buildings is charged as an expense in the Statement of Comprehensive Income to the extent that it exceeds the balance, if any, held in the asset revaluation reserve relating to a previous revaluation of that class of asset. The legal title to all land and buildings is in the name of New Zealand Red Cross Incorporated.

(h) Income Tax

All other property, plant and equipment is recorded at cost less accumulated depreciation.

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.

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:

(i) Intangible Assets

Asset Class

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. (j) Inventories Inventories are valued at the lower of cost, determined on a first-in first-out basis, and net realisable value. (k) 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) Property, Plant & Equipment

Buildings

Annual Depreciation Rate 2.0%

Computer Hardware

33.3%

Equipment

20.0%

Furniture and Fittings

10.0%

Motor Vehicles

10.0% to 20.0%

(n) 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 revenue in advance at 30 June.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

Dividend & Interest Income

(s) Expenses

Interest is recognised using the effective interest rate method and dividends from investments are recognised when the rights to receive payments have been established.

Expenses are recognised on an accruals basis.

Donations Public donations are recognised as received. Donations received for Special Appeals are transferred to a restricted fund within equity after being first recorded in the Statement of Financial Performance. This represents a change in policy from last year when Special Appeal revenue was reduced by the amount of unexpended revenue and then disclosed as a Special Appeal Current Liability in the Statement of Financial Position. Refer (r) for policy relating to special appeals. (o) 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. If no reliable figures are available these are not recognised in the financial statements.

(t) Licences to Occupy 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 by the Foundation. (u) Statement of Cash Flows For the purpose of the statement of cash flow, cash includes cash on hand and cash held with banking institutions and excludes any cash held with custodians. The following terms are used in the statement of cash flows: Operating Activities – are the principal revenue producing activities of the Red Cross and other activities that are not investing or financing activities. Investing Activities – are the acquisition and disposal of investments, property, plant and equipment and intangibles. Financing Activities – are activities that result in changes in the size and composition of the contributed accumulated funds and any borrowings.

(p) Grants

(v) Provisions

Grants received are not recognised in the Statement of Financial Performance 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, where these are subject to restrictions but are not required to be returned to the grantor, are recognised as income when they are received.

Provisions are recognised when Red Cross 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.

(q) Legacies Legacy income is received from people who bequeath part of their estate to Red Cross. This is recognised as received, and all legacy receipts are recognised as income in the period in which they are received. Unless recognised as a specific purpose 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.

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 Actual or constructive commitments made by the National Board to fund specific projects from Restricted funds are recognised as provisions. An obligation to fund a project or expenditure is considered to exist when the National Board has agreed to a specific project plan and the intention to fund the project or expenditure has been communicated to the recipient.

(r) 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 restricted funds in the Statement of Financial Position except to the extent the National Board has identified an actual or constructive obligation to incur expenditure in which case a provision is recognised. Refer note (v).

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

Red Cross Shops

Administration

Total

$'000

2011 $'000

2010 $'000

Income

Training fees

5,367

5,735

Trading sales

760

4,520

5,280

4,306

292

297

Public donations Rents

214

217

Grants processing support (refer note 12)

674

Interest

2,050

1,620

Dividends Other income

449 60

6,132

4,520

3,739

14,391

12,318

5,916

Total Income

380 22

Expenditure

3,333

941

2,332

6,606

Trading purchases

560

696

1,256

964

Property costs

239

1,052

501

1,792

1,673

1,172

443

2,577

4,192

3,441

107

524

722

519

Amortisation (software) Audit fees

176 58

69 57

Total Expenditure

5,395

3,239

6,168

14,802

12,639

737

1,281

(2,429)

Personnel costs

Supplies, materials and other* Depreciation

Net Surplus (Deficit)

(411)

(321)

* Includes $4,000 for work carried out by Deloitte other than audit fees (2010:$2,900) for an engagement in regard to the payment of grants relating to the Christchurch earthquakes.

Trading & Administration Activities – Analysis, Excluding Foundation First Aid Training

Red Cross Shops

Administration

Total

$’000

2011 $'000

2010 $’000

Training fees

5,367

5,735

Trading sales

760

4,520

5,280

4,306

750

Income

New Zealand Red Cross Foundation grant

281

286

Rents

214

217

Grants processing support (refer note 12)

924

Interest Other income

1,427 60

1,401 22

6,132

4,520

3,656

14,308

12,436

3,333

941

2,252

6,526

5,836

Public donations

Total Income Expenditure

Personnel costs Trading purchases

560

696

1,256

964

Property costs

239

1,052

501

1,792

1,673

1,172

443

2,570

4,185

3,438

107

524

722

519

Amortisation (software) Audit fees

176 52

69 45

Total Expenditure

5,395

3,239

6,075

14,709

12,544

737

1,281

(2,419)

Supplies, materials and other* Depreciation

Net Surplus (Deficit)

(401)

(108)

* Includes $4,000 for work carried out by Deloitte other than audit fees (2010:$2,900) for an engagement in regard to the payment of grants relating to the Christchurch earthquakes. 46

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

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

New Zealand Red Cross Consolidated

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$’000

Project partners

4,985

4,649

4,985

4,649

Annual appeal

429

Note

Income

Public donations:

1,417

1,089

1,417

1,089

Lottery

193

243

193

244

Other

2,035

1,340

2,035

1,340

103,754

5,652

103,754

5,652

7,184

3,003

7,184

3,003

231

Direct mail

Special appeals Public New Zealand Government

Interest

Less: unexpended special appeal income carried forward

(286)

1,000

New Zealand Government (delegate support) Contracts Legacies

(286)

1,000

917

941

917

941

1,511

1,719

1,511

1,595

123,233

19,818

123,233

19,694

Other Total Income

1,000

Expenditure (Direct Costs)

796

606

796

606

Other fundraising costs

1,948

2,352

2,080

2,352

Total Expenditure

2,744

2,958

2,876

2,958

120,489

16,860

120,357

16,736

Personnel costs

Net Surplus

4. Core Activities – Analysis, Consolidated and Excluding Foundation

Note

International Humanitarian Law

Disaster Relief & Development

Emergency Management

Community Activities

Total

2011

2010

$’000

Total

Expenditure

Personnel costs – New Zealand

362

166

2,034

2,562

1,806

Aid workers

1,184

1,147

International disbursements Appeal activities International levies International projects – other Supplies, materials & other Depreciation Total Core Expenditure

1,203

1,485

66,952

8,402

118

275

1,284

127

1,056

2,473

2,122

129

113

316

268

71,232

406

3,164

74,888

15,506

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

Accumulated Depreciation

Net Book Value

Annual Depreciation Charge

$’000

2011

21,273

844

20,429

200

Equipment

2,468

1,901

567

245

Computer hardware

1,348

1,185

163

Land and buildings

Furniture and fittings

1,911

913

998

136

Motor vehicles

2,978

1,860

1,118

362

29,978

6,703

23,275

1,038

19,655

643

19,012

154

Equipment

2,200

1,657

543

214

Computer hardware

1,283

1,142

141

30 June 2011 2010

Land and buildings

Furniture and fittings

1,678

779

899

Motor vehicles

2,570

1,565

1,005

245

27,386

5,786

21,600

787

30 June 2010

2011

2010

$’000

21,600

23,461

Summary

Net book value, 1 July

1,191

Additions

(82)

(Disposals)

1,604

Revaluation increases/(decreases) (Depreciation)

(1,038)

Net Book Value, 30 June

23,275

825 (899) (1,000) (787) 21,600

The fair value of Red Cross properties are arrived at on the basis of rolling cyclical valuations. The most recent valuations were carried out at 30 June 2011 by Telfer Young registered valuers who are members of the Property Institute of New Zealand. The valuation, which conforms to New Zealand Valuation Standards, was arrived at in reference to market evidence of transaction prices and market rental yields for similar properties. 6. Intangible Assets, Software – Analysis, Consolidated and Excluding Foundation Cost

Accumulated Amortisation

Net Book Value

Annual Amortisation Charge

$’000

1,154

520

634

176

1,115

344

771

2011

2010

$’000

771

765

2011 Computer software 2010 Computer software

Summary

Net book value, 1 July Additions (Disposals)

(Amortisation)

(176)

(69)

Net Book Value, 30 June

634

771

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

7. International Disbursements – Analysis, Consolidated and Excluding Foundation

2011

2010

$’000

100

200

The International Federation of Red Cross & Red Crescent Societies:

Afghanistan – health improvement programmes Cambodia -– dengue fever eradication programme Disaster relief supplies Timor-Leste – first aid programme

171

177

202

100

184

330

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

153

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

Kiribati Red Cross Society – branch development

Pacific first aid trainers’ programme Vietnam – health care The International Committee of the Red Cross

South East Asia – mine action Pacific National Red Cross Societies – Programme Support

Pacific telecommunications project

Samoa Red Cross Society – first aid programme Tonga Red Cross Society – branch development, blood programme Solomon Islands Red Cross Society – first aid programme

Vanuatu Red Cross Society – first aid programme & support

Tuvalu Red Cross Society – programme support

(15)

Sub regional warehouse

121

1,203

1,485

Other Pacific Red Cross National Society support Total Disbursements

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

8. Government Grants for Disaster Relief, Consolidated and Excluding Foundation 2011 $’000 Pakistan floods

500

Columbia floods

134

Indonesia volcanic erruption

200

Vietnam floods

250 100

Sri Lanka floods Middle East/North African civil unrest

1,000

Canterbury Earthquake

5,000

Total Grants for 2011

7,184

2010 $’000 6

Pacific disaster preparedness

Fiji floods and tropical cyclone 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

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

Other

2011

2010

$’000

321

540

861

1,088

– Public donations

1,506

5,652

– New Zealand Govt – Other international (Note 8)

2,184

3,003

321

4,230

4,551

9,777

Opening balance

Donations received:

Interest earned on funds invested Less

321

306

Disaster response

Transfer to International Federation of Red Cross and Red Crescent Societies

2,890

4,850

Aid worker costs

Transfers to Australia Red Cross Society (floods)

240

Transfers to Japanese Red Cross Society (tsunami)

560

Transfers to Timor-Leste Red Cross Society

Transfer to provision for Samoa tsunami recovery project

3,640

Transfer to International Committee of Red Cross

Transfer to Fiji Red Cross Society (floods)

Transfer to restricted funds

508

321

4,230

4,551

8,916

861

Unexpended Special Appeal Funds carried forward 50

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

10. Capital Commitments There are no capital commitments for future capital expenditure resulting from contracts entered into at balance date (2010: $Nil).

11. Restricted Funds

New Zealand Red Cross Consolidated

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$’000

567

199

567

199

New Zealand Red Cross has the following restricted funds:

International appeals and development Local projects and developments

Meals on Wheels activities

Emergency response units/vehicles

1,730

1,737

1,730

1,737

2,452

2,183

2,452

2,183

Purchase and maintenance of properties Specific purpose legacies International humanitarian law conference Total Restricted Funds 12. Christchurch Reserve

The Christchurch Reserve fund has been created in response to Red Cross’ involvement in the Canterbury earthquake of September 2010 and Christchurch earthquake of February 2011. The reserve has the following components:

New Zealand Red Cross Consolidated

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$’000

80,617

Funds received

Public donations Interest income New Zealand and other Government

230

11,936

14,694

107,477

61,889

Response activities

1,367

Recovery activities

Specific purpose donations Total funds received Less funds used

Grant payments to the people of Christchurch

Total funds used

63,273

Total Christchurch Reserve

44,204

All funds donated by the New Zealand public are to assist people and communities affected. This includes the provision of goods, cash grants and other support. Funds will not be used for Red Cross administration costs, staff salaries or transport and accommodation of Red Cross staff and volunteers. Other Red Cross national societies launched appeals to raise money to support the initial response and for long term recovery. All interest earned is reinvested into the Reserve. It is anticipated that due to the scale and continuing needs of the community that it may take in excess of 5 years to responsibly deliver aid and provide recovery services. Red Cross established an independent Commission made up of community leaders to oversee the disbursement of donations. Red Cross incurred additional costs of $936,000 for the administration of the grant payment processes. These costs are included within Trading and Administration Activities. A donation from the Japanese Government and funds from the Foundation were received which substantially covered this expenditure (refer note 2).

13. Cash and Cash Equivalents

New Zealand Red Cross Consolidated

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$’000

Cash

16,664

9,107

12,322

5,811

Term Deposits

37,145

53,809

9,107

49,467

5,811

Total Cash and Cash Equivalents

Funds held as cash earn interest ranging between 2.00% and 3.15%. Term Deposits range from 14 days to 3 months on interest rates ranging from 3.65% to 4.70%. 14. Receivables

New Zealand Red Cross Consolidated

Trade Foundation - accrued interest and sale proceeds

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$’000

1,196

918

966

918

743

269

959

498

1,986

1,222

1,925

1,416

Current

786

637

556

637

30 days

307

131

307

131

60 days

Other Total Receivables Ageing Analysis - Trade Receivables

90 days and over Total Trade Receivables

1,196

918

966

918

1,028

952

891

952

15. Payables

Trade Accruals Total Payables

539

429

539

408

1,567

1,381

1,430

1,360

16. Provision for Employee Entitlements

Holiday

570

424

570

424

Payroll and other

182

Total Employee Entitlements

752

521

752

521

17. Investments

New Zealand Red Cross Consolidated Note

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$’000

Consists of

21,614

21,695

Short term fixed interest

6,211

3,905

Long term fixed interest

17,258

20,940

525

505

12,009

10,306

138

129

138

129

36,141

35,785

21,752

21,824

Investment with the Foundation

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

6,349

4,034

138

129

Non-current

29,792

31,751

21,614

21,695

Total Investments

36,141

35,785

21,752

21,824

Current

All classes of investment are measured at fair value which is derived from their external quoted prices based upon the market bid price for the investment. Fair value changes on the value of investments of $1,491,121 (2010: $1,675,774) have been recognized in the Statement of Financial Performance. 18. Licences To Occupy

New Zealand Red Cross Consolidated

Licences to Occupy at 1 July Less: Repayments Licences to Occupy at 30 June

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$’000

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. 19. Contingent Liabilities There were no contingent liabilities at 30 June 2011 (2010: Nil). 20. Significant Events after Balance Date There were no significant events after balance date. 21. Related Party Transactions As part of its operations, Red Cross deposits money with the Foundation.

New Zealand Red Cross Consolidated

Opening Funds 1 July 2010

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$’000

21,695

21,083

21,695

21,083

Plus

1,156

2,010

1,156

2,010

Less Payments during the year

(1,237)

(1,398)

(1,237)

(1,398)

Closing Funds 30 June 2011

21,614

21,695

21,614

21,695

Deposits received during the year

21. Related Party Transactions continued Red Cross receives interest on deposits at rates which vary from 3.00% to 7.50%. As at 30 June 2011 interest accrued with the Foundation was $289,824 (2010: $310,377). Red Cross receives an annual grant from the Foundation. The grant for 2011 was $750,000 (2010: $750,000) for operational purposes and $250,000 (2010: $Nil) for grants processing in relation to the Christchurch earthquake appeal. Red Cross pays annual levies to the International Committee of the Red Cross (ICRC) and the International Federation of the Red Cross and Red Crescent Societies (IFRC). Levies in respect of year ended 30 June 2011 were $118,000 (2010: $275,000). All donations received by Red Cross for international work and special appeals overseas are sent to the ICRC or the IFRC. Red Cross makes disbursement for disaster relief and development activities of other national societies of the International Red Cross Red Crescent movement (refer note 7). 22. Management Remuneration Total remuneration received by the Chief Executive and those managers reporting directly to the Chief Executive was $1,054,457 (2010: $1,001,000). National Board members receive no remuneration for their services performed. 23. Financial Instruments 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, reserves 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. Financial Instruments - Categories of Financial Assets and Financial Liabilities, Consolidated

2011

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

53,809

Assets Cash and cash equivalents

1,986

Investments

36,140

Total Financial Assets

89,949

1,986

91,935

24,957

89,949

1,986

24,957

116,892

Payables and provisions

(5,615)

Total Financial Liabilities

(5,615)

Non-financial liabilities

(300)

Total Liabilities

(5,615)

(300)

(5,915)

Trade receivables

Non-financial assets Total Assets Liabilities

(5,615)

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

23. Financial Instruments continued Financial Instruments - Categories of Financial Assets and Financial Liabilities, Consolidated

2010

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

Assets Cash and cash equivalents

1,222

Investments

35,785

Total Financial Assets

44,892

1,222

46,114

22,914

44,892

1,222

22,914

69,028

Payables and provisions

(5,542)

Total Financial Liabilities

(5,542)

Non-financial liabilities

(1,158)

Total Liabilities

(5,542)

(1,158)

(6,700)

Trade receivables

Non-financial assets Total Assets Liabilities

(5,542)

Financial Instruments - Categories of Financial Assets and Financial Liabilities, Excluding Foundation

2011

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

Assets Cash and cash equivalents Trade receivables

49,467

1,925

Investments

21,752

Total Financial Assets

71,219

1,925

73,144

24,956

71,219

1,925

24,956

98,100

Payables and provisions

(5,478)

Total Financial Liabilities

(5,478)

Non-financial liabilities

(300)

Total Liabilities

(5,478)

(300)

(5,778)

Non-financial assets Total Assets Liabilities

(5,478)

23. Financial Instruments continued

2010

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

5,811

Assets Cash and cash equivalents

1,416

Investments

21,824

Total Financial Assets

27,635

1,416

29,051

22,914

27,635

1,416

22,914

51,965

Payables and provisions

(5,521)

Total Financial Liabilities

(5,521)

Trade receivables

Non-financial assets Total Assets Liabilities

Non-financial liabilities

(1,158)

Total Liabilities

(5,521)

(1,158)

(6,679)

24. Revenue

New Zealand Red Cross Consolidated

Trading activities Administration activities

New Zealand Red Cross Excluding Foundation

2011

2010

2011

2010

$’000

10,652

10,064

10,652

10,064

3,739

2,254

3,656

2,372

Revenue generation activities

123,233

19,818

123,233

19,694

Total Revenue

137,624

32,136

137,541

32,130

Trading & 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. This has increased substantially in the current year due to the public donations for the Canterbury earthquake appeals.

NEW ZEALAND RED CROSS ANNUAL REPORT 2011

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NEW ZEALAND RED CROSS SOCIETY INCORPORATED Report on the Financial Statements We have audited the financial statements of the New Zealand Red Cross Society Incorporated which includes the New Zealand Red Cross Foundation Incorporated (“Red Cross”) on pages 36 to 56, which comprise the consolidated and separate statements of financial position as at 30 June 2011, the consolidated and separate statements of financial performance, statements of comprehensive income, statements of changes in equity and statements of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. This report is made solely to the Members of the Red Cross. Our audit has been undertaken so that we might state to the Members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Members, as a body, for our audit work, for this report, or for the opinions we have formed. National Board’s Responsibility for the Financial Statements The National Board is responsible for the preparation and fair presentation of financial statements, in accordance with generally accepted accounting practice in New Zealand, and for such internal control as the National Board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibilities Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates, as well as the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our unmodified opinion on the financial position and our qualified opinion on the financial performance and cash flows. Other than in our capacity as auditor and an engagement in regard to the payment of grants relating to the Christchurch Earthquakes, we have no relationship with or interests in the Red Cross. Basis for Qualified Opinion on Financial Performance and Cash Flows As stated in the accounting policies, control over cash donations prior to being recorded is limited, and there are no practical audit procedures to determine the effect of this limited control. Qualified Opinion on Financial Performance and Cash Flows 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 36 to 56 present fairly, in all material respects, the results of Red Cross’ operations and cash flows for the year ended 30 June 2011 in accordance with generally accepted accounting practice in New Zealand. Opinion on Financial Position In our opinion, the financial statements on pages 36 to 56 present fairly, in all material respects, the financial position of the Red Cross as at 30 June 2011 in accordance with generally accepted accounting practice in New Zealand.

Chartered Accountants 17 September 2011 Wellington, New Zealand

NATIONAL

Get involved Whether you have ten minutes, ten months or $10,000, there are hundreds of ways for you to get involved with our work. You could volunteer in a shop, learn to save a life, help young refugees adjust to a new life or take part in a fundraising challenge — whatever takes your fancy. Do something different in your free time Volunteers are the lifeblood of New Zealand Red Cross. Could you be one of them? Our 20,000 volunteers are involved in a variety of community programmes or serve on emergency management teams Take part New Zealand Red Cross’ transformation of governance and leadership has opened more paths for people to become involved in their own areas or nationally as members, in governance or in leadership positions. Support or organise a fundraising event From organising your own event, selling lottery tickets or taking part in our annual street appeals, there are tons of ways to fundraise.

Prepare for disaster Book a course to improve your first aid or emergency management skills. Corporate support A partnership with an organisation as trusted and respected as Red Cross tells others a great deal about your business and its values. Our corporate partnerships team has the skills, expertise and experience to develop a tailor-made partnership that will not only meet your business objectives, but will also help save lives. Donate Regular gifts or payroll giving from thousands of Red Cross supporters is essential for rapid response and means we can reach people with vital aid when they need it most. Other ways to support Red Cross’ work are by donating money or services. Find out more Online at www.redcross.org.nz By phoning 0800 RED CROSS (0800 733 276) Or by visiting one of our service centres across New Zealand

Join our online community Go online to find out about the difference Red Cross makes. And remember to share our stories with all your contacts too. Join us at www.facebook.com/newzealandredcross or follow us at www.twitter.com/newzealandredcross

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NEW ZEALAND RED CROSS ANNUAL REPORT 2011

NATIONAL

Directory New Zealand Red Cross is part of the worldâ&#x20AC;&#x2122;s largest humanitarian network. It is an independent humanitarian organisation, founded in 1863, and based on the Fundamental Principles of the International Red Cross and Red Crescent Movement of humanity, impartiality, neutrality, independence, voluntary service, unity and universality. New Zealand Red Cross operates in a neutral and impartial manner, independent of religious, cultural, or political affiliations. AS AT 30 JUNE 2011 Patron His Excellency The Right Honourable Sir Anand Satyanand GNZM, QSO, Governor-General of New Zealand National Board National President Penny Mason National Vice-President Paul Steere Debby Butler Brie Jessen, youth representative Paul Kiesanowski Jennifer McMahon Ian McPherson Steve Osborne Alan Webb Counsellors of Honour Terry Butt Joan Cockburn, CBE, JP Nancy Cook Pat Gribble, QSM, JP Lynette Jones, CNZM Jocelyn, Lady Keith, CBE Rt Hon Justice Sir Kenneth Keith, ONZ, KBE Dr Ron MacKenzie, QSO Gerald McDougall, OBE, JP Kerry Nolan Patricia Oâ&#x20AC;&#x2122;Brien, QSO Jane Smith Sydney Smith John Stevens Jerry Talbot Paul Watson Rev Gavin Yates Peter Young

Officials International Humanitarian Law Consultant Rt Hon Justice Sir Kenneth Keith, ONZ, KBE New Zealand Red Cross Foundation Trustees Christopher Batten (Executive Trustee) Peter Allport Falcon Clouston Alan Isaac Peter Martin Belinda Stanley Paul Steere Mark Weaver Management Chief Executive, John Ware National Retail Manager, Patrick Cummings Business Services Manager, Bruce Jones International Operations and Emergencies Manager, Andrew McKie National Fundraising Manager, Alice Montague (appointed 15 August) People and Capability Manager, Gillian Peacock National Operations Manager, Wendy Potter National Education and Training Manager, Graham Wrigley Bank ASB Bank Limited Legal Adviser Burrowes and Company Auditor Deloitte National Office Red Cross House, 69 Molesworth Street P O Box 12 140, Thorndon, Wellington 6144, New Zealand Ph. 64 4 471 8250 Fax. 64 4 471 8251 Website. www.redcross.org.nz E-mail. national@redcross.org.nz