ANNUAL REPORT 2012 - New Zealand Red Cross · A blanket, hot water bottle, soup, torch radio, milo,...

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ANNUAL REPORT 2012

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

91,905volunteer

hours

7,747volunteer drivers

34volunteer

coordinators

646,918meals

delivered

MEALS ON WHEELS

9,210volunteers

5,369members

SUPPORTERS

5,429volunteer

hours

620days of service

133volunteers

HOSPITAL SERVICES

832courses

delivered19,878

participants

PEOPLE SAVERS

64,859 participants

2.84%national

growth rate

FIRST AID

1,200retail

volunteers

98%volunteer workforce

51shops

RETAIL SHOPS

3,564participants

196courses

delivered

SAVE-A-MATE

135new Twitter followers per month

170new

Facebook followers per month

578likes

Feb–Jun 2012

25,000monthly website

visits

DIGITAL CONNECTIONS

13,269patients

transported

709drivers/

volunteers

21,716volunteer

hours

COMMUNITY TRANSPORT

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With stories of hardship being reported, especially among young people, and winter in full swing, this challenge was a fun twist on an important day, which this year celebrated the contributions of young people and the opening of a new Red Cross shop.

Every dollar spent at a Red Cross shop goes back into supporting Red Cross’ work with vulnerable people in communities, and with a strong network of 51 Red Cross shops the impact makes a difference every day.

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

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

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

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

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

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

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

IN THE WARDROBE CHALLENGE

ENGAGING

New Zealand Red Cross challenged the country to visit a Red Cross shop to mark

World Red Cross Red Crescent Day, and help make their dollar go further.

$50+

New Zealand Red Cross Annual Report 2012

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18,000 unique Facebook page views

Massey University student Olivia Cramond challenges other students.

Watch Red Cross’ call for entries

2,000 Facebook likes for Wardrobe Challenge photos

44 Facebook shares of Wardrobe Challenge photos or albums

ENGAGING IN THE WARDROBE CHALLENGE

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A snowfall hit Christchurch early this year, and with many still facing the harsh repercussions of last February’s earthquake, it was looking likely to be another long, cold, miserable and expensive winter. Identifying this risk, New Zealand Red Cross used its people, services and universality to respond to and again support Canterbury during a time of adversity.

Before the seasonal change, the winter warmer packs were being put together by volunteers. Reminiscent of care packages Red Cross distributed during the Second World War, these packs were created to support the most vulnerable and offer some solace and a smile during another challenging time.

So when winter arrived, New Zealand Red Cross was ready. Mobilising its living network of outreach volunteers and staff, 500 winter warmer packs were snapped up within days. Realising they were only just reaching the tip of those in need, the New Zealand Red Cross Earthquake Commission allocated funds from the appeal to produce another 4,000 packs.

A testament to the power of social networks was a message posted on Facebook asking for all Christchurch residents struggling to stay warm this winter, as a result of the earthquakes, to request a pack. With 103 likes, 56 comments and 79 shares the post helped New Zealand Red Cross reach more, while a flow-on success saw 59 additional likes of New Zealand Red Cross’ Facebook page.

“This is such a lovely thing the Red Cross is doing. Winter is being harsh on us all,” said one recipient.

Another posted: “Thank you so much for our winter warmer pack. Truly appreciate the generosity and thoughtfulness involved of all those who supported this initiative.”

The reach and success of programmes like this could not be achieved so quickly and at such a level without New Zealand Red Cross’ living network. It is these people - members, volunteers and staff - that continually respond to repair, restore and support those who need it most.

Red Cross acknowledges the significant tasks people face in rebuilding their lives and livelihoods and remains committed to the long-term recovery of the region. Every individual, family and community has different needs and capacities and this has been recognised in the variety and breadth of Red Cross’ recovery programmes.

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

A RECOVERING CHRISTCHURCH

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

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CHRISTCHURCH RECOVERY

4,500 winter warmer packs produced for struggling Christchurch residents

103 Facebook likes for the opportunity to receive winter warmer packs

80k earthquake-affected Kiwis have received Red Cross grants

$12m set aside for earthquake recovery programmes

Since the Earthquake Commission was established in February last year, more than 80,000 of those affected have received grants, totalling about $69 million, with a further $30 million ring-fenced for grants that are currently open.

About $12 million has been put aside for recovery programmes, like training outreach volunteers to provide care in the community, distributing winter warmer packs and torch radios, supporting those displaced as a result of the earthquake and strengthening disaster response capability. The remainder of the appeal funds, about $14 million, is for further grants and programmes under development.

Recovery is a marathon, not a sprint. New Zealand Red Cross may be new to recovery, but through partnerships and learnings from other National Societies around the world, and the power of living networks at home, our ability to be relevant and useful during times of adversity is changing our landscape.

See Red Cross’ message for Christchurch

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When the Canterbury earthquakes shook our nation and tested us last year, it also brought out the power of humanity and the connectivity of the International Red Cross and Red Crescent Movement. In our response to this disaster other National Societies from across the globe came to support us, as did corporates and community groups. Within New Zealand Red Cross, members, volunteers and staff worked collaboratively to help the most vulnerable during their time of greatest need.

This interconnectivity did not go un-noticed. The global network that had mobilised the power to enhance our response was mentioned and praised at the 31st International Conference of the Red Cross and Red Crescent Movement in Geneva last November.

New Zealand Red Cross is also active in lending its support to other National Societies in their development and with resources in their time of need. This is especially relevant among the Pacific Islands, where we remain actively involved. We support programme development, resilience and capacity building as well as providing a governance enhancement programme.

That connection and support is also seen through an expanding living network at home, in New Zealand.

Two years ago, New Zealand Red Cross changed its governance structure and 15 area councils replaced six regional boards. This transformed the membership of the organisation. We are now starting to see the result of this change, with our members giving us a closer link into local communities, and enhancing the connection between governance, the organisation’s grass roots and staff.

Area councils are one of our most successful living networks, with a reach that is far and wide. Members ensure we are able to deliver more services, and connect with and support the most vulnerable in a more relevant way. On the flip side it also increases Red Cross’ presence and profile within local communities.

Building a stronger National Society is contingent on robust and effective governance and leadership. A strong National Society also requires an engaged, committed and vibrant membership. As a strictly member-led organisation through our constitution as a National Society, the members have a say in the organisation and its direction and without them we would not exist.

Young people are also playing a crucial role in the work we are doing, adding another dimension to our capability and reach. The number of youth members within Red Cross is increasing as is their influence, with two representatives sitting on our National Board.

From members to volunteers and staff, everyone plays an important role in New Zealand Red Cross’ ability to reach further and do more. And the planned improvements and developments in connectivity through technology over the coming year will reduce the digital divide and increase collaboration even further.

Being technologically savvy and transitioning the organisation into a more innovative space through social media, and a new website, and giving everyone access to a relevant intranet, will reduce the exclusion and isolation historically felt by some of the most remotely located members. Stronger networks between staff, members and volunteers will also develop and New Zealand Red Cross will become more interconnected, and in a better position to help change and shape our landscape as an essential part of New Zealand and international communities.

Our most successful living networks are our people, who with our services respond to, repair and restore communities in times of adversity.

Penny Mason National President

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

NATIONAL PRESIDENT’S REPORT


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NATIONAL PRESIDENT’S REPORT

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

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

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CHIEF ExECUTIVE’S REPORT

Chief Executive John Ware in Wellington

“The demand for our work has steadily been increasing, and New Zealand Red Cross has been there, and will remain

there for the most vulnerable in their time of greatest need.”

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The work of New Zealand Red Cross is diverse and far reaching and this year, once again, Red Cross people have enabled our services and programmes to reach more people across more communities. Their efforts and the assistance of our generous donors should not go unnoticed.

Red Cross people, members, volunteers and staff have provided in the last year humanitarian assistance in local communities in New Zealand and in 26 countries around the globe. I wish to thank all our members, volunteers, staff and international aid workers for their valued contribution, dedication and drive; it is our people who make a difference

New Zealand Red Cross has developed a strategy entitled “Towards 2020” which outlines who we are, how we work and what we will do to achieve our mission. Our focus will be around five strategic aims; preparing for, responding to and enabling recovery from disasters and crises; enabling healthy and safe living; promoting a culture of social inclusion; attracting and retaining highly engaged and diverse members, volunteers and staff; having a strong financial base with growing income and robust infrastructure. The call for our humanitarian work has never been greater including the continuing needs of people and communities affected by the earthquakes in Canterbury and Christchurch in 2010 and 2011. New Zealand Red Cross is there for those in need, and will remain there for the most vulnerable.

Through the generosity of New Zealanders and others from 17 other countries we have been able to provide cash grants and assistance through our long term recovery programmes. Red Cross is supporting those in need and helping prepare, strengthen and grow our own capabilities and the resilience of our communities. We have lifted our own emergency response capacity by restructuring and growing our volunteer emergency response teams. New Zealand Red Cross has large, well-resourced and mobile teams available to respond to a natural disaster. A disaster response team can be dispatched as a self-contained unit with enough gear, tents and food to be self-sufficient for 72 hours. The national disaster response team is part of a structure which includes locally based disaster welfare response teams and surge volunteers as circumstances require.

We have continued to play an influential role within the Red Cross, Red Crescent Movement and jointly pledged with the New Zealand Government at the 31st International Conference in Geneva on a number of humanitarian issues. We have advocated strongly in support of a treaty to regulate the transfer of small arms and we are currently campaigning to make nuclear weapons the target.

A seamless connection between local, national and international capabilities ensures we can provide fast and relevant assistance. Our work internationally continues to be well regarded and sought after, while our collaboration with other National Societies remains integral to our development and learnings, and also gives us the opportunity to support and guide others where needed.

Our lives are more interconnected, with the digital landscape increasing our reach and ability to connect. Social media, and a new website and intranet will play a more crucial role over the next year in enabling us to do more and do better when disasters strike. New Zealand Red Cross is committed to be there first, and remain there for the long term using our people, and expertise in times of need.

John Ware Chief Executive

CHIEF ExECUTIVE’S REPORT

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National BoardPenny Mason National President

Penny hails from rural Hawke’s Bay and has been the National President since 2006, and was the Vice President for the two years before that. She has been instrumental in developing and facilitating significant internal structural change at New Zealand Red Cross, to ensure it is in a better position to connect with local communities. Penny has also supported other National Societies across the globe, more recently on governance advice in the Pacific.

A registered nurse, specialising in burns and plastic surgery, Penny has devoted much of her life to volunteering in the community, and started her commitment to Red Cross as a Red Cross youth coordinator in the 1980s.

Penny believes Red Cross is a fantastic organisation, with its local to global aspect making it unique and interesting.

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

Paul Steere National Vice-President

After a long career in senior management and stewardship largely based on international food production and marketing, Paul is now involved in an eclectic range of governorship. He has director and chairmanship roles in the salmon, wine, education, aviation, Australian seafood, and architecture industries, alongside eight years with New Zealand Red Cross.

He says he find his work with Red Cross humbling, and while it is time demanding, his “efforts pale by comparison with our overseas aid workers and the many members and volunteers including professional colleagues on the Foundation and Earthquake Grants Commission”.

Paul says the quintessential characterisation of New Zealand Red Cross was clearly defined by the Federation Secretary General Bekele Geleta, during his recent New Zealand visit, “our volunteers are undervalued for their wisdom of experience, their commitment and passion. For them it is not a job but a vocation and without this we would not be Red Cross”.

Alan Webb

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

Jennifer McMahon

Jennifer is a former nurse and nutritionist, functioning in both capacities as an aid worker with the International Committee of the Red Cross from 1983 to 2000. Today she is a company director and has been New Zealand Red Cross’ Dunedin branch secretary for the last five years.

Jennifer is happy and proud to be part of an organisation that promotes and adheres, to concepts and beliefs people can embrace and be passionate about. She says Red Cross shows it is flexible and in touch with our society as it begins more domestic programming, in conjunction with the renowned international work that has been done now for more than 50 years. This will be enhanced as the area council structure is embedded and strengthened, to provide an enhanced ‘living network’ within our communities, making Red Cross even more relevant.

Paul Kiesanowski

Paul Kiesanowski has had an extensive 33 year career with leading accounting and professional services partnerships and is currently Managing Partner of KPMG Christchurch. Paul joined New Zealand Red Cross’ Board in July 2011.

Paul chairs the Board’s Audit and Risk Committee and joins Paul Steere as a Trustee representative to the Red Cross Foundation, which manages the safe keeping and investment of the Society’s reserves and funds.

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


GOVERNANCE

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GOVERNANCE

Debby Butler

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

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

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

Aaron Turner

A member of New Zealand Red Cross’ youth panel, Aaron Turner has been involved with Red Cross in some capacity for more than eight years. After competing studies at Otago University he moved to Auckland where he is currently studying to become a paramedic.

Aaron claims to have the Red Cross ‘virus’. This fuels his passion for what Red Cross does, and ensures that most of his spare time is spent working on committees and community programmes for it, including representing Red Cross at recent Asia-Pacific and Pacific youth forums.

Aaron says New Zealand Red Cross may be small, but one can never underestimate its successful living network: its people and the impact they have at a grassroots level.

Mat Darling

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

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

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

Steve Osborne

Originally a high school biology teacher, who promptly retrained as a psychologist, Steve first became involved with Red Cross in his home country of Canada as a blood donor in 1976.

Steve brings a wealth of experience from 20 years as a psychologist to holding prominent positions on several international governing boards. He is currently the chief executive and registrar of the New Zealand Psychologists Board.

Steve likes Red Cross’ ‘purity’ of purpose and single agenda: to help those most in need. He is proud of the work Red Cross has done in Christchurch, and its international aid worker programme, he says is a great example of the effectiveness of Red Cross in action.

Letft to right: Steve Osborne, Jennifer McMahon, Penny Mason,

Aaron Turner, Paul Kiesanowski, Mat Darling (youth representative),

Debby Butler, Alan Webb and Paul Steere

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National OperationsOur lives are more interconnected than ever before, comprising powerful networks that are able to reach more and do better. The strength of New Zealand Red Cross is its members, volunteers and staff, who are responsible for the delivery of programmes and activities.

Red Cross’ network enables it to call upon its people to support the needs of the vulnerable in the community during times of adversity. Last winter, a massive snowstorm blanketed Christchurch, threatening to limit, even halt, essential services. Roads were slippery and conditions hazardous, but through social networks, including radio, Red Cross was able to quickly mobilise people with four wheel drive vehicles to support the delivery of 800 hot meals to those in need; no one missed out.

Every area across New Zealand is different, from their needs and wants to capabilities and requirements. Our members, volunteers and staff are a living network in these communities, enabling them to identify needs and make a difference where they are needed the most.

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

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

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

This is a small sample of the great work our members, volunteers and staff undertake on a daily basis, working with and supporting communities.

Next year we will continue to utilise our people, who are part of the lifeblood and fabric of our communities, to interconnect and respond to, support and build capacity within communities, to reach more and do better.

91,905volunteer hours

meals on wheels

800hot meals during the

Christchuch 2011 snowstorm

Alan Busfield (Howick) being delivered a hot meal from volunteer Gerry Paynter

Watch the Save-a-Mate programme

1,064%increase in participation for

Save-a-Mate in 2011

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Education and Training Our global landscape is changing; society is increasing its pace with demand for things becoming more immediate. A key to remaining relevant is staying innovative.

New Zealand Red Cross understands people’s time is often constrained and therefore precious, so addressed this by launching an online first aid learning platform. Its pick-up in the market exceeded expectations. The tool provides an alternative to days off work to attend a first aid class; instead individuals, businesses and communities now have the opportunity to learn online in their own time.

Events of this past year have raised an alarming awareness of how precarious life can be and highlighted the need for people to know first aid before they need it. It was this ability to make a difference in critical situations that led to a number of incredible stories following New Zealand Red Cross first aid training.

“The value of first response training was deeply reinforced for me. I could help to save this man’s life because I did Red Cross first aid training” New Zealand aid worker physiotherapist Cheryl Campbell said after saving a man who went into cardiac arrest in the Red Sea.

Matthew Hancock’s seven-year-old son was racing through the kitchen, when he tripped and boiling water from a nearby pot poured down his back. “There would have been nothing worse than not knowing what to do. It was timely that I completed a Red Cross first aid course late last year and knew the key components of dealing with burns,” Matthew said. Six months later, to the untrained eye, Nathan bears no scar.

And for Jodie Alexandra it was only a month before her Red Cross first aid training was needed. Stumbling upon an accident in Lower Hutt she performed CPR on a man who had gone into cardiac arrest. After a triple by-pass he walked away to tell the tale. “This is why the New Zealand Red Cross course was utterly invaluable,” Jodie said. “As long as you are abled bodied you can do it, everyone can do it, everyone at the scene could have done it; they just need to know how.”

It is no surprise that New Zealand Red Cross’ first aid training programme is the only provider in the country that can boast a double highly confident rating following a New Zealand Qualifications Authority review.

New Zealand Red Cross automated external defibrillators, or AEDs, remain a market leader. Being modern and easy to use, with no buttons, has cemented its reputation and attractive status, making them a must have for many.

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


64,859first aid training participants

2.84%national first aid

participant growth rate

Check out first aid’s online learning platform!

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Fundraising and Partners From members and volunteers to donors and corporates, the success of fundraising initiatives and Red Cross’ ability to reach more are a testament to the level of collaboration, innovation and connection between these stakeholders.

The power of this network and their generosity enables New Zealand Red Cross to deliver programmes that respond to needs, and repair, restore and better prepare communities in times of adversity. The success of the 2012 Annual Appeal is one example of this, with direct mail donations reaching more than $370,000 and on the street collections totalling around $400,000.

Our project partners programme, now in its 12th year, continues to grow, to around 25,000 dedicated donors. We thank our committed regular donors for their generous support in giving New Zealand Red Cross more than $6.2 million, about 70 per cent of our fundraising income. This makes project partners an integral enabler for Red Cross to do what it does best – help those most in need.

We are also grateful to our direct mail donors, who help us to be there to save and change lives. Bequests continue to remain a strong income source, with further engagement planned over the next year.

Fundraising support continues from our valuable members, branches and groups, who are instrumental in enabling us to reach further into New Zealand communities and help more here and overseas.

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

and credibility. The ways we engage with our people, donors and beneficiaries will increase as we integrate current database systems and launch a new fundraising suite.

Changes in the digital landscape are ensuring we connect with our donors in more relevant and engaging ways and remain transparent about where their donations are being spent. The launch of a direct mail newsletter, KindRed, which was met with a fantastic response from our supporters, will help us achieve this goal.

New Zealand Red Cross remains committed to restoring and better preparing communities for the long-term. Corporate partners like New Zealand Post Group, Country Road and Kathmandu have ensured we can do this and stay relevant with our recovery activities in Christchurch. They, along with our other donors, are helping us become better prepared nationally so we can respond relevantly when a need arises.

New Zealand Red Cross will continue to focus on keeping costs to a minimum, so our programmes and activities receive the greatest amount of funding. It is about ensuring every dollar makes a real difference every day.


25,000dedicated project partners

$400kfunds from street appeals

Have a look at our new fundraising mailer

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Purex Community Partner

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

Johnson & Johnson Medical

Johnson & Johnson Medical Loyalty Partner

Supporting the development of a new programme to educate and empower New Zealand’s youngest children

Reversed white out logo - use this for Spot printing.

Kathmandu Community Partner

Supplying clothing and equipment to emergency response teams and encouraging community support

Country Road Retail Partner

Sponsor of Fashion Trade and supporter of Red Cross shops throughout New Zealand

New Zealand Post Group Emergency Response Partner

Providing vital support when the need is greatest

New Zealand Red Cross is deeply appreciative to those who have contributed so generously. We extend our particular thanks to the following organisations for their extraordinary support.

Foodstuffs South Island Community Trust • Fonterra • Vodafone Foundation • Goldman Sachs Gives • ASB • Cranwood Co. • Shell • The St Judes Trust • BP • Silver Fern Farms • Westfield • Genesis Energy • Telecom Foundation • The Radio Network • Coca-Cola Foundation • Pfizer • Sky TV • Credit Suisse • The Warehouse • GlaxoSmithKline • Mobil • Sanofi-Aventis • Gough Gough & Hamer • Johnson & Johnson Group • Fisher & Paykel • Bell Gully


Key partners:

Left: Volunteers collect for Red Cross Annual Appeal; Right: New Zealand Red Cross says thank you on Facebook

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Red Cross publications

Marketing and CommunicationsA new team, new direction and new focus are helping develop a more interconnected New Zealand Red Cross community. The power of this transformation is shaping and changing the landscape of who New Zealand Red Cross is, and how we are seen.

Following a year of adversity, the communications and marketing team, which includes policy and advocacy, is building a more sustainable, relevant and innovative future for New Zealand Red Cross.

A new website, currently being developed with a launch date set for December, will provide an engaging picture of what Red Cross is doing. The user-friendly site will offer greater transparency for our donors, easy access and booking for services such as first aid courses and restoring family links, and greater support to those looking for help. For the first time our website will also connect Red Cross people in one place. An interface for members, Red Cross Board and volunteers will allow them access to a new intranet, as part of an internal communications strategy.

Electronic newsletters have been developed with a range of purposes, from supporting the chief executive’s weekly message to discussing international humanitarian law and communicating fundraising messages to donors. In the area of social media, Facebook posts have reduced in the last six months by a third, but tweets have increased. These now focus on optimal time slots and content that our users are interested in. As a result, engagement has increased significantly, while the number of followers is growing steadily.

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

Our own living network is integral to our social media growth. This was highlighted by a tweet for retail donations in Wellington seeing @NZRedCross trending in Wellington and getting 22 retweets. The launch of our national disaster response team saw 40 people share the content, 200 people click through to our website and more than 200 views of the video posted.

Other key activities include supporting media and marketing for international operations, our aid worker programme, first aid, retail and national programmes, as well as undertaking media training with senior management, staff and emergency response volunteers. This year has also seen the development and creation of recruitment campaigns for volunteers, a digital asset portal and streamlining of new marketing collateral, all helping to inform the development of a brand strategy. New Zealand Red Cross’ brand continues to remain highly visible, its power helping shape how we function and grow.

Jan Launched regular contribution and continuous moderation of Facebook and Twitter pages

Feb Live tweeting from the Christchurch Commemorative Service – 22 February

Mar Annual Appeal sees many followers helping to retweet messages and share content on Facebook

Facebook album images of Appeal participants and staff generates both internal and external support.

April Facebook community support spreads message of Disability Support Grant for earthquake-affected Christchurch residents

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

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

See an interview with one of our aid workers

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International Humanitarian LawAs armed conflict around the world makes headlines, never before has the need to understand the laws of wars been so acutely at the forefront of people’s minds. The idea expressed in international humanitarian law is simple: even wars have laws — the set of international rules that seek to limit the effects of armed conflict on people and objects to reduce suffering and damage.

Red Cross has been at the forefront of advocating for, and educating people on wars, laws and humanity. This remains a key priority of New Zealand Red Cross and the wider Movement. So it was no surprise that in November New Zealand Red Cross made seven pledges at the International Conference, which brings together ICRC, the Federation and 187 national societies worldwide. Two were individual pledges, four were joint with our Government and we teamed up with other Pacific Island National Societies and one other. Several of these pledges concerned strengthening our work in this area.

Mainstream and social media interest in IHL activities has exceeded expectations, with a consistent interest in new programmes achieving record coverage, not only for the programme but in comparison with other Red Cross activities. This programme is reaching further and reaching more through the digital landscape.

The power of social connections is illustrated by Red Cross’ being able to gain significant reach and success in raising public and political awareness of the importance of a strong and comprehensive Arms Trade Treaty for New Zealand and the wider Pacific region. Every year, because of the widespread availability and misuse of weapons, hundreds of thousands of people are displaced, injured, or killed. Recent armed conflicts further highlight the crucial need for legally binding standards that stop irresponsible arms trades and transfers. Prior to the United Nations negotiating conference in July, New Zealand Red Cross joined with Amnesty International – Aotearoa New Zealand and Oxfam New Zealand to raise public and government awareness of the need for a strong and robust Arms Trade Treaty.

Youth are supporting the IHL programme. Woodford House in Havelock North hosted the first Women and War seminar highlighting the issues faced by women and girls in modern warfare. Aid workers and people from a refugee background shared their stories, with an interactive photo exhibition and role playing putting the girls themselves in the spotlight. Youth, the community and Red Cross members and staff were brought together to teach, learn, and develop a greater understanding of this issue and how it may affect their own environments.

The ‘make nuclear weapons the target’ awareness campaign was also launched through youth. An essay competition was held using mainstream and social media

and education institutions to canvas student interest and involvement. In collaboration with ICRC, the essay asked New Zealand tertiary students to answer the question ‘why do we need an international treaty to ban nuclear weapons?’, with a $1,000 cash prize for winning. Later in the year the campaign will take on another level, bringing in celebrities, war veterans and students to help educate a new generation on the impact of nuclear weapons. Our www.targetnuclearweapons.org.nz website was launched at Parliament on 30 August. This site calls on people to sign up online using their Facebook or Twitter accounts and when the power of humanity offsets the force of 150,000 Hiroshima bombs, the estimated combined force of 20,000 nuclear weapons held globally, a social explosion will be ignited.

Our lives are more interconnected than ever before and this enables our message to be delivered to more. Young people are more engaged and are keen to voice their opinions on issues, while other members of the population want to share knowledge and lessons learnt. This year New Zealand Red Cross’ international humanitarian law programme will capitalise on this connection to bring a united voice to make a difference.

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

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Red Cross ShopsOur national footprint of shops continues to grow. Over this last year nine new stores were opened and three were revamped to meet changing community needs. It is a growing presence New Zealand Red Cross has never had before, helping us to connect with local communities by offering a quality service, with the added incentive that all profits raised are invested directly back into our work supporting the most vulnerable.

When the Matamata shop opened, it became the flagship in launching a New Zealand Red Cross wardrobe challenge celebrating World Red Cross Red Crescent Day. It was an innovative marketing platform which produced significant outcomes. The store broke Red Cross sale records in its opening weeks as well as achieving the most interest on social media for a single campaign. Media interest across the country was also high. By the third week, the store had made more than $33,000.

Our network of stores is brought to life by 1,200 volunteers, who make up 98 per cent of our retail workforce. Their time is invaluable in ensuring we can deliver. The stores are more than a shop; they are part of a community, servicing needs and creating connections that begin with our volunteers.

In Hamilton, the stores are supporting people from migrant backgrounds by providing vouchers. In Fitzroy, shop loyalty vouchers are being offered, another pioneering trial aimed at connecting with more people.

Innovation and development have changed the landscape of our retail presence. For the first time, we bought an existing retail store and turned it into a Red Cross shop, a move we will look to continue as part of our target of opening a further eight stores over the next year. In another first, a joint venture with a local recycling outlet in Rotorua has created a 500sqm store in the city centre, while a 600sqm processing centre in Hamilton offers a distribution and sorting point to ensure the right products, of the right quality, go to where they are needed most.

Unfortunately the February Christchurch earthquake saw the closure of one of our central city stores there. Although the building may be lost, the volunteers were keen to remain with Red Cross so relocated to other stores, with the shop coordinator taking a new role in Nelson.

Ensuring Red Cross maintains its high standard has resulted in a full assessment of the safety and quality of all buildings we operate out of. Three shops had to relocate due to seismic risk. The Ashburton shop, operated by Red Cross members, was the first to move.

In ensuring our shops remain leading edge, the move into the digital realm is growing more important. A recent tweet calling for clothing donations to Wellington shops was one of New Zealand Red Cross’ most popular Facebook posts and achieved our first trending post on Twitter.

Remaining at the forefront of integration and outreach, Red Cross shops will continue to be original, relevant and appealing to communities. This successful living network uses our people and services to make a difference.

The new Red Cross shop in Tawa opened in early 2012

1,200retail volunteers

51retail shops

A sneak peak at Red Cross shop Pinterest page

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International Operations and EmergenciesAs drinkable water became scarce in Nukalaili, on the island nation of Tuvalu in late 2011, New Zealand Red Cross was there. Sending two relief aid workers and supplies, we worked closely with Tuvalu Red Cross, who asked for our help with their immediate response to the drought.

We mobilised 2,000 collapsible water containers, hand sanitisers, tarpaulins (to be used to capture rain) and two emergency desalination units.

New Zealand Red Cross is leading the charge through technological innovation. Desalination units are now so compact and portable they can be taken on an airplane as checked in luggage. In this instance we were able to teach Tuvalu residents how to distil water and work independently to support their own community. The desalination units remain a permanent fixture on the island.

For the first time, first aid training in situations of violence was developed and then offered, in partnership with Red Cross for Papua New Guinea. Tonga, Samoa and Fiji will also receive training, adapted to the context of each country. Although most of these nations are not involved in conflicts, a changing global landscape has led to a desire to be responsive to changing needs and be prepared.

While we are there for our neighbours, New Zealand Red Cross’ reputation ensures we also make a lasting contribution to some of the biggest humanitarian needs across the globe. In some of the world’s most complex situations, like Gaza and Syria, New Zealand aid workers are there. Our aid worker programme gained high praise this year, following an independent review released in late May. Feedback was provided on the relevance, efficiency, effectiveness and sustainability of the programme and the prerequisite training to be an aid worker.

In October Red Cross aid worker Andrew Cameron became one of 25 New Zealanders to receive one of the world’s highest nursing honours, the Florence Nightingale medal at a ceremony at Government House. Only 50 Florence Nightingale medals are awarded worldwide every two years.

Every year, New Zealand Red Cross remains committed to supporting the response to disasters. In the past year we have supported crises across Asia, Africa and the Middle East, contributed $847,000 to Pacific development programmes and supported 48 missions overseas. New Zealand Red Cross provides many types of support, including helping 340 individuals get prosthetics in Laos.

At home, the Christchurch earthquake was the catalyst that led to being better prepared to service our own needs. If a disaster strikes in New Zealand, anywhere at any time, Red Cross has a well-trained response team available. Never before has New Zealand Red Cross had such a large, well-resourced and highly mobile team on hand to respond. The national disaster response team will provide all the services of the Red Cross disaster response teams, as well as offering pre-hospital emergency care, and urban search and rescue capability. This team can be sent as a self-contained unit, with enough gear, including tents, eating utensils and food to be self-sufficient for 72 hours. This team complements the existing volunteer structure of disaster surge volunteers and disaster welfare support teams. Our most successful living network is our people. The combined integration and outreach of our members, volunteers and staff enable us to reach further, do more and do better.

340 individuals in Laos received prosthetics

Check out Red Cross’ national disaster response team


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Aid workers on international missions

* mission extended | **mission cancelled

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

Middle East

Jodye Tomalin* | MENA zone (Lebanon) Security Cheryl Campbell | Gaza PhysiotherapistGuru Dev Singh | Gaza HealthAndrew Cameron | Georgia HealthLindah Jury | Iraq HealthRachael Maunsell | Iraq HealthLouise Humphreys | Afghanistan HealthAndrew Cameron | Afghanistan HealthJacquee Dixon-West | Afghanistan HealthJoyce Hood | Afghanistan HealthRebecca Barrell | Afghanistan HealthLouisa Akavi | Afghanistan HealthGail Corbett | Afghanistan Health

Pakistan HealthHaydar Alwash | Pakistan SurgeonAna Zarkovic | Pakistan Water and sanitationGraham Duggan** | Pakistan HealthAmanda Scothern | Pakistan Branch developmentHillary Cullen | Pakistan HealthRebecca Barrell | Pakistan Health

Western and Northern Africa

Joshua Herron | Senegal SecurityJoyce Hood | Libya HealthJudy Owen | Libya Health

East Africa

Melanie Ogle | Kenya Resource mobilisationGrant Hargreaves | Kenya LogisticsDavid Easson | Kenya/Horn of Africa ReliefMelanie Ogle | Kenya/Horn of Africa Disaster responseFelicity Gapes* | Somalia/Kenya HealthJanet Askew | Sudan HealthJustine Charman | South Sudan HealthGlenys Ewans | South Sudan Health

23

communications / IT & T ERU

disaster management & recovery

health / first aid / surgeons / hospital management / physiotherapists

logistics / resource mobilisation

organisational and branch development / monitoring and evaluation

relief

security / economic security

shelter /community habitat

water / water & habitat / sanitation


Asia

Bernice Chiam | India Water and sanitationCarl Burr | China Water and sanitationJeremy Talbot | Japan Monitoring and evaluationGlenys Ewans | DPRK Hospital project managerChelsea Giles-Hansen | Malaysia Water and sanitationRose Dew | Malaysia Disaster recoveryAlan Bradbury | Malaysia (AP Zone) Monitoring and evaluationJeremy Francis | Malaysia (AP Zone) Logistics

Pacific Region

Rosemary Fenton* | Pacific Region Community habitatWilliam Olsen | Papua New Guinea IT & T ERUMatthew Poole | Papua New Guinea IT & T ERUSue Chamberlain* | Timor-Leste Organisational developmentJane Edgar | Cook Islands Water and sanitationDean Manderson | Tuvalu Water & habitat

Fiji Disaster managementGreg Johns | Tuvalu Water & habitatPeter Winthrop | Samoa First aid

Vanuatu First aid Fiji First aid Tonga First aid

Mission areas

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Restoring family links“My husband and I would like to thank you for the great news you have told us regarding the tracing of my son. I cannot describe how happy I am today,” said a message received by New Zealand Red Cross from a mother reconnected with her son after a six-year separation.

A distressing effect of conflict and natural disasters is population displacement, leaving people unable to contact family or friends. People may not know where to turn to find or contact loved ones or even to find out if they are still alive. In these situations New Zealand Red Cross works worldwide to restore and maintain contact for separated families by tracing family members and exchanging messages of news.

In this case, the mother relocated to New Zealand and later heard through a friend that her son was alive, he had been spotted at a church in Nairobi. She contacted New Zealand Red Cross and used its restoring family links service. The neutrality and reach of Red Cross’ network help make it easier to exchange family news, re-establish contact and clarify the fate of the missing across borders, frontlines and into areas most cannot reach. Five months after this mother heard word of her son, the ICRC sent a letter to New Zealand Red Cross: he was alive and wanted to see her.

Not every tracing case is solved, or has a happy ending, but through the combined network of the Red Cross Movement, its people, services and universality New Zealand Red Cross is able to respond and help restore contact where it can.

The restoring family links service also facilitates the issue of ICRC travel documents. This helps people who need to leave their country of residence and do not have access to official identification documents, like a passport. Applicants are required to have their entry visa pre-approved by New Zealand Immigration to receive this service.

This year more than 100 new restoring family links cases opened in New Zealand.

Ensuring Red Cross’ restoring family links service remains technologically relevant, is essential to keeping the service valuable. In cooperation with National Societies, the ICRC is working on a new, interactive website for people wishing to restore contact with loved ones. The site will complement additional services that will be available on New Zealand Red Cross’ website from December.

Saying goodbye to a loved one in any circumstance can be hard. In situations of conflict and disaster that opportunity may never arise, and many don’t know if they will ever see or hear from family members again. Red Cross provides peace of mind and hope to people who have been separated.


A Red Cross message

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

“Pretty cool... can’t wait to take this home.” — six year-old Gus Khuton on receiving a torch radio

“The generosity of those who donated to the appeal has been staggering, and working through how to distribute the funds has been a very big responsibility, and one all the commission members have not taken lightly.” — Chair of the New Zealand Red Cross 2011 Earthquake

Commission Chair Sir John Hansen.

“It was a big occasion and the water was very good.” — Jim Curnow on receiving a enhanced water filter grant just in

time for his 90th birthday.

EARTHQUAKE RECOVERY UPDATE

CANTERBURY

Torch radio distributions at 1 July 2012

Primary school children

Elderly people

People with disabilities

Refugees and migrants

Community events

Outreach

Distributed from Christchurch office

11,6061,548

4,447

622

968720

51

Top Ten Grants by ApplicantsTotal number of applicants: 79,844

Top Ten GrantsTotal amount disbursed: $69,561,000

2011 Emergency & Hardship Grant2011 Alternative Severage

System Grant2010 Hardship Grant2011 Temporary School Grant2011 Winter Assistance Grant2010 Damaged Home Grant2012 Winter Assistance Grant2011 Bereavement Grant2010 Emergency Grant2010 Relocation Grant2012 Disability Support2011 Independent Advice GrantAll Other Grants

2,189 door knocks

475 winter warmer packs

167 mobility assistance vouchers$125m in funds

raised

80,000 grants recipients

19,962 torch radios handed out

$30m committed grant funding

259 torch radio presentations to community groups

$14m grants and programmes under development1,120 outreach visits $5m spent on

programmes

62 outreach volunteers


26

FINANCIAL STATEmENTS

27

For the year ended 30 June 2012

Actual 2012

Planned 2012

Actual 2011

Planned 2011

Actual 2010

Planned 2010

Actual 2009

International Programmes

Delegate deployments achieved 53 60 58 55 55 65 56

Delegate deployment months achieved 283 330 259 280 260 300 290

Number of IT&T ERU Technician missions achieved 15 11 5 11 20 16 11

Number of International Special Appeals supported 8 11 15 8

Contributions to International Special Appeals $1.0M $3.7M $8.4M $6.0M

Development Programmes Supported 2 2 4 4 7 6 6

Development Grants to Pacific National Societies 8 8 8 8 8 8 8

Restoring Family Links requests administered 140 - 66 75 99

Disaster Relief Family Kits Stored 2,000 2,000 1,500 1,000 1,000 1,000 1,000

Emergency Management

Aggregated last year as – Number of Operational Red Cross Response Teams 17 17 19 19 21 20 18

Community Programmes

Develop new National Programmes - 1 1 1 1 1 2

Community Training participants 23,442 19,824 13,623 15,202 10,973 12,809 9,766

Meals on Wheels delivered 646,918 578,201 671,635 729,233 696,875 759,528 759,532

Refugees supported 768 839 1,058 822 529 265 1,072

IHL seminar/training participants* 19 19 19 25 1,080* 855* 865*

Patients transported in community transport programmes 13,269 8,545 15,774 11,133 10,059 7,889 7,874

Education and Training

Maintain registration as PTE Yes Yes Yes Yes Yes Yes Yes

Commercial Training Participants 64,859 69,612 63,080 70,313 67,583 73,033 68,668

Retail

Number of shops (including Branch Shops) 51 48 45 42 41 49 37

New shops opened 9 8 4 8 8 12 4

Statement of Service Performance


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

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

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

On reviewing the statement of financial performance it can be noted that New Zealand Red Cross including the Foundation, recorded a surplus of $7.6 million. Accumulated Funds increased by $1.5 million and a continuation of donor support saw the Christchurch reserve increase by $8.2 million during the year.

The New Zealand Red Cross Foundation Incorporated (Foundation) continues to fulfil its role – to generate sustainable revenue streams and maintain the value of investments.

The Foundation had realised revenue of $2.6 million (2011; $2.4m) with New Zealand Red Cross receiving $1.2m in interest earnings, $0.75m to cover operational costs and $0.5 million to assist with the additional costs incurred in processing earthquake grants. A net deficit of $0.2 million was however recorded by the Foundation after taking into account the unrealised loss of $2.1 million from the Fair Value movement in Investments.

The total surplus of $9.1 million reported by New Zealand Red Cross excluding the Foundation is affected by the accounting policy of recognising all special appeal revenue and expenditure in the year that it is received or expended. In the current year special appeal reserves increased by $9.1 Million (primarily Christchurch). Without the increase in reserves there was a near breakeven result ($37k) on our conventional activities for the year which was consistent with the National Board’s expectations.

New Zealand Red Cross Inc.

Conventional Activities (in thousands of dallars)

2012 2011Trading & Administration Activities (526) (398)Fundraising Activities -Revenue 8,891 9,171Humanitarian Activities - Expense (8,402) (7,959)Surplus (Deficit) from Activities (37) 814

TRADING AND ADMINISTRATION ACTIVITIES

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

FUNDRAISING ACTIVITIES

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

CORE ACTIVITIES

During the year we spent a total of $18.9 million on our core humanitarian activities. While the majority was for Canterbury, $5.4 million was spent on other disaster relief activities and $2.8 million on community activities including meals on wheels, community transport and community training. $0.5 million was spent on domestic emergency management and international humanitarian law.

The work carried out by Branches represents a significant component of both fundraising activity and domestic humanitarian activity. While the volunteer nature of this activity is not measured in the financial statements the actual revenue generation achieved by Branches in the year totalled $1.3 million from activities including the annual appeal, special appeals, book sales, property rentals, lottery sales, and meals on wheels. Expenditure on these activities totalled $0.6 million providing a surplus of $0.7 million towards other activities.

CHRISTCHURCH RESERVE

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

STATEMENT OF FINANCIAL POSITION

Accumulated funds at 30 June 2012 were $54.3 million after consolidating funds from the Foundation, an increase of $1.5 million over the previous year. The total funds including restricted funds, the Christchurch reserve, and the asset revaluation reserve, were $117.8 million, an increase of $6.8 million over the previous year.

Consolidated Net Assets at 30 June 2012, were $117.8 million (2010, $111.0 million) which includes cash $54.3 million (2010, $53.8 million) property, plant and equipment of $23.4 million (2010, $23.3 million), and investments of $33.5 million (2010, $36.1 million).

Bruce Jones National Business Services Manager

Financial Summary

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

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

New Zealand Red Cross & Red Cross Foundation

New Zealand Red Cross Incorporated

Note 2012 2011 2012 2011Trading and Administration Activities

Income 15,706 14,243 14,990 14,311

Expenditure 15,624 14,802 15,516 14,709 Trading and Administration Activities Surplus/(Deficit) 2 82 (559) (526) (398)

Fundraising Activities

Income 32,186 123,233 32,160 123,233

Expenditure 3,705 2,744 3,705 2,876 Fundraising Activities Surplus 3 28,481 120,489 28,455 120,357

Humanitarian Activities

Expenditure 18,876 74,888 18,876 74,888 Humanitarian Activities Deficit 5 18,876 74,888 18,876 74,888

Surplus from all Activities 7 9,687 45,042 9,053 45,071

Change in the fair value of investments (2,081) 1,642 - -Total Surplus for the Year 7,606 46,684 9,053 45,071

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



2012 2011 2012 2011Total Surplus for the Year 7,606 46,684 9,053 45,071

Other Comprehensive Income

Revaluation of land and buildings (817) 1,604 (817) 1,604

Restricted funds - 361 - 361 Total Other Comprehensive Income (817) 1,965 (817) 1,965

Total Comprehensive Income for the Year 6,789 48,649 8,236 47,036


30


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

NoteOpeningBalance

ComprehensiveIncome

FundsTransfers

ClosingBalance

New Zealand Red Cross & Red Cross Foundation 2012

Accumulated funds 52,780 7,606 (6,123) 54,263

Restricted reserves 8 2,452 - (2,069) 383

Christchurch reserve 9 44,204 - 8,192 52,396

Asset revaluation reserve 11,541 (817) - 10,724 Total Members’ Funds 110,977 6,789 - 117,766

New Zealand Red Cross & Red Cross Foundation 2011


Restricted reserves 2,183 361 (92) 2,452

Christchurch reserve - - 44,204 44,204

Asset revaluation reserve 9,937 1,604 - 11,541 Total Members’ Funds 62,328 48,649 - 110,977

New Zealand Red Cross Incorporated 2012


Restricted reserves 2,452 - (2,069) 383

Christchurch reserve 44,204 - 8,192 52,396

Asset revaluation reserve 11,541 (817) - 10,724 Total Members’ Funds 92,322 8,236 - 100,558

New Zealand Red Cross Incorporated 2011


Restricted reserves 2,183 361 (92) 2,452

Christchurch reserve - - 44,204 44,204

Asset revaluation reserve 9,937 1,604 - 11,541 Total Members’ Funds 45,286 47,036 - 92,322


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Statement of Financial PositionAs at 30 June 2012 in thousands of dollars



Note 2012 2011 2012 2011Members’ Funds

Accumulated funds 54,263 52,780 37,055 34,125

Restricted funds 8 383 2,452 383 2,452

Christchurch reserve 9 52,396 44,204 52,396 44,204

Asset revaluation reserve 10,724 11,541 10,724 11,541 Total Members’ Funds 117,766 110,977 100,558 92,322

Comprising:

Assets

Cash and cash equivalents 10 63,408 53,809 58,381 49,467

Trade and other receivables 11 2,018 1,986 1,917 1,925

Inventories 739 1,047 739 1,047

Investments 12 3,944 6,349 5,823 7,997 Total Current Assets 70,109 63,191 66,860 60,436

Investments 12 29,586 29,792 15,612 13,755

Property, plant and equipment 13 23,442 23,275 23,442 23,275

Intangible assets 14 510 634 510 634 Total Non-Current Assets 53,538 53,701 39,564 37,664

Total Assets 123,647 116,892 106,424 98,100

Liabilities

Trade and other payables 17 2,510 1,591 2,495 1,454

Income received in advance 413 276 413 276

Provision for employee entitlements 18 819 752 819 752

Provision for Samoa recovery project 2,139 3,296 2,139 3,296 Total Current Liabilities 5,881 5,915 5,866 5,778

Total Liabilities 5,881 5,915 5,866 5,778

Net Assets 19 117,766 110,977 100,558 92,322

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

Penny Mason John Ware National President Chief Executive


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



2012 2011 2012 2011Cash Flows from Operating Activities

Trading and administration activities 16,036 13,479 15,663 13,802

Fundraising activities 32,599 122,736 32,573 122,736 Cash Inflow from Operating Activities 48,635 136,215 48,236 136,538

Trading and administration activities 15,115 14,177 15,007 14,084

Fundraising activities 3,617 2,744 3,617 2,876

Humanitarian activities 18,876 74,730 18,876 74,846 Cash Outflow from Operating Activities 37,608 91,651 37,500 91,806

Net Cash Inflow from Operating Activities 11,027 44,564 10,736 44,732

Cash Flows from Investing Activities

Sale of investments 9,510 3,590 426 1,237

Sale of property, plant and equipment 56 82 56 82 Cash Inflow from Investing Activities 9,566 3,672 482 1,319

Purchase of investments 8,799 2,304 109 1,165

Purchase of property, plant and equipment 2,183 1,191 2,183 1,191

Purchase of intangibles 12 39 12 39 Cash Outflow From Investing Activities 10,994 3,534 2,304 2,395

Net Cash (Outflow)/Inflow from Investing Activities (1,428) 138 (1,822) (1,076)

Net Increase in Cash Held 9,599 44,702 8,914 43,656



2012 2011 2012 2011Net increase in cash held 9,599 44,702 8,914 43,656

Add opening cash 53,809 9,107 49,467 5,811 Closing Cash 63,408 53,809 58,381 49,467

This is represented by:

Cash and cash equivalents 63,408 53,809 58,381 49,467 Total Cash and Cash Equivalents 63,408 53,809 58,381 49,467



33



2012 2011 2012 2011Reconciliation of the Total Surplus for the Year with Net Cash Inflow from Operating Activities

Total Surplus for the Year 7,606 46,684 9,053 45,071

Add Non-Cash Items

Depreciation charge 1,143 1,038 1,143 1,038

Amortisation charge 136 176 136 176

Add/(Deduct) Changes in Working Capital Items

(Increase)/Decrease in accounts receivable (321) (764) 8 (509)

Decrease/(Increase) in inventories 308 (504) 308 (504)

(Decrease)/Increase in accounts payable and provisions (63) 73 (49) (43)

Increase in income received in advance 137 3 137 3

(Decrease) in special appeals - (500) - (500)

Add/(Deduct) Investing Activities

Change in fair value of investments 2,081 (1,642) - -

Net Cash Inflow from Operating Activities 11,027 44,564 10,736 44,732

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



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Notes to the Financial StatementsFor the year ended 30 June 2012

1. SUMMARY OF ACCOUNTING POLICIES

Reporting Entity

These consolidated financial statements and the accompanying notes summarise the financial results of activities carried out by New Zealand Red Cross Incorporated (“Red Cross”) comprising the offices of New Zealand Red Cross and branches (parent entity) and the activities of the New Zealand Red Cross Foundation Incorporated (consolidated entity).

Red Cross is part of the largest humanitarian organisation in the world, helping people wherever they might be – international or in our own communities – to improve the lives of vulnerable people by mobilising the power of humanity and enhancing community resilience.

The New Zealand Red Cross Foundation Incorporated (the “Red Cross Foundation”) was established in 1978 to hold and invest Red Cross’s investments to generate a source of sustainable income. The Red Cross Foundation is controlled by the Red Cross.

Statement of Compliance

Red Cross is a society incorporated under the Incorporated Societies Act 1908. The Red Cross Foundation is a charitable trust registered under the Charitable Trusts Act 1957. Both Red Cross and the Red Cross Foundation are registered as charities under the Charities Act 2005. Red Cross is a Public Benefit Entity.

The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand. They comply with the New Zealand Equivalents to International Financial Reporting Standards and other applicable financial reporting standards as appropriate for public benefit entities.

The financial statements have been prepared in accordance with the differential reporting framework issued by the New Zealand Institute of Chartered Accountants as Red Cross and the Red Cross Foundation have no public accountability and there is no separation between the owners and the governing body. All differential reporting exemptions allowed under the framework for differential reporting have been applied, with the exception of NZ IAS-7 Statement of Cash Flows.

The functional and presentation currency is New Zealand dollars.

Basis of Preparation

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

• certain financial assets (investments) which are carried at fair value;• the revaluation of certain non-current assets (land and buildings); and• inventory which is carried at the lower of cost or net realisable value.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

These financial statements have been prepared using the accrual basis of accounting except for the Statement of Cash Flows and donations.

Basis of consolidation

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

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

Significant Accounting Policies

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

a. Revenue Recognition

Public donations are recognised as received. Donations received for International Red Cross Appeals are transferred in full to the International Appeal Fund or to the relevant Red Cross National Society.

Those donations for Special Appeals which have not been expended at balance date are recorded as restricted funds in the Statement of Financial Position except to the extent the National Board has identified an actual or constructive obligation to incur expenditure in which case a provision is recognised.

Red Cross has significantly benefited from donations of services and goods by volunteers, members and by other organisations. Donations in kind are only recognised in revenue when the value can be reliably measured.

Grants received are not recognised as revenue until the requirements of the grant agreement have been met. Government grants, which are subject to restrictions but are not required to be returned to the grantor, are recognised as income when they are received.

Legacy income represents bequeaths to Red Cross from estates. Legacy income is recognised when actually received.

First aid training courses completed during the year are recognised as income based on the percentage of completion method. Revenue from the sale of goods is recognised when the risks and rewards of ownership have been significantly transferred to the buyer.

Interest is recognised using the effective interest rate method. Dividends are recognised when the rights to receive payment has been established.

b. Expense Recognition

Expenses are recognised on an accruals basis.

Trade and other payables are recognised when an obligation to make future payments resulting from the purchase of goods and services exists.

Provisions are recognised when it is probable that a present obligation, as a result of a past event, for the future sacrifice of economic benefits can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at balance date, taking into account the risks and uncertainties surrounding the obligation.

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


35

Provision is made for benefits accruing to employees in respect of wages, salaries and annual leave when it is probable that settlement will be required and they are capable of being measured reliably.

Provisions made in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

Leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

c. Asset Recognition and Measurement

Inventories are valued at the lower of cost, determined on a first-in first-out basis, and net realisable value.

Land and buildings legal title is in the name of Red Cross. Land and buildings are measured at fair value. Fair value is determined on a rolling cyclical basis with valuations prepared by independent registered Valuers. Recent acquisitions and improvements are carried at cost less depreciation.

Revaluation increases arising on the revaluation of land and buildings is credited to the asset revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in which case the increase is credited to the Statement of Financial Performance to the extent of the decrease previously charged.

A decrease in carrying amount arising on the revaluation of land and buildings is charged as an expense in the Statement of Comprehensive Income to the extent that it exceeds the balance, if any, held in the asset revaluation reserve relating to a previous revaluation of that class of asset.

All other property, plant and equipment is recorded at cost less accumulated depreciation and any accumulated impairment losses. Land is not depreciated. Depreciation is charged using the following estimated useful lives (rates) on a straight line basis:

Asset Class Depreciation Rate

Buildings 2.0%

Computer Hardware 33.3%

Equipment 20.0%

Furniture and Fittings 10.0%

Motor Vehicles 10.0% to 20.0%

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

d. Impairment of Assets

At each balance date, the carrying amounts of tangible and intangible assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

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. Areversal of an impairment loss is recognised in the Statement of Financial Performance immediately, unless the relevant asset is carried at fair value, in which case the reversal ofthe impairment loss is treated as a revaluation increase.

e. Income Tax

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

f. Members’ Funds

Funds comprise Accumulated Funds, Restricted Funds, Christchurch Reserve and the Asset Revaluation Reserve.

Accumulated Funds are those received and used for those general purposes which are the responsibility of the National Board.

Restricted Funds are funds that have been restricted by the donor or by the National Board as to their use.

Christchurch Reserve represents the balance of funds held from the two earthquake appeals launched in September 2010 and February 2011.

Asset Revaluation Reserve represents the accumulated revaluation increases in the fair value of land and buildings.

g. Financial instruments

Financial instruments include financial assets (cash, receivables and investments) and financial liabilities (payables, provisions and unexpended special appeals).

Financial instruments are initially recorded at fair value plus transaction costs except for those investments categorised as fair value through profit or loss which are initially recorded at fair value. Subsequent measurement of financial instruments is dependent upon the classification of the instruments.

Financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.

Financial assets are classified into the following specified categories: financial assets “at fair value through profit or loss”, and “loans and receivables”. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Investment financial assets are held for trading and therefore upon initial recognition are classified as fair value through profit or loss as these investments are managed and their performance is evaluated on a fair value basis. Receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at amortised cost, using the effective interest method less any impairment.

All financial liabilities are initially measured at fair value, net of transaction costs and then at amortised cost using the effective interest method.

h. Statement of Cash Flows

For the purpose of the statement of cash flow, cash includes cash on hand and cash held with banking institutions and any cash held with custodians.

Operating activities are the principal revenue producing activities and other activities that are not investing or financing activities. Investing activities are the acquisition and disposal of investments, property, plant and equipment and intangibles.

i. Goods and Services Tax (GST)

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

j. Comparative amounts

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

NOTES TO THE FINANCIAL STATEmENTS

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2. TRADING AND ADMINISTRATION ACTIVITIES

First Aid Training

Red Cross Shops

Management & Administration

New Zealand Red Cross & Red Cross Foundation2012 2011

Income

Services and goods sold 6,270 5,784 - 12,054 10,647 Public donations - - - - 297 Rents - - 223 223 214 Grants processing support - - - - 674 Interest and dividends - - 2,822 2,822 2,499 Other income - 9 598 607 (88)Total Income 6,270 5,793 3,643 15,706 14,243

Expenditure

Personnel costs 3,408 1,212 2,541 7,161 6,606 Trading purchases 510 783 - 1,293 1,256 Property costs 182 1,208 587 1,977 1,792 Other expenses 1,142 633 2,410 4,185 4,192 Depreciation charge 95 136 565 796 722 Amortisation charge - - 136 136 176 Audit fees - - 76 76 58 Total Expenditure 5,337 3,972 6,315 15,624 14,802

Trading and Administration Activities Surplus/(Deficit) 933 1,821 (2,672) 82 (559)

First Aid Training

Red Cross Shops

Management & Administration


2012 2011

Income

Services and goods sold 6,270 5,784 - 12,054 10,647 Red Cross Foundation - - 750 750 750 Public donations - - - - 286 Rents - - 223 223 214 Grants processing support - - 500 500 924 Interest and dividends - - 1,410 1,410 1,427 Other income - 9 44 53 63 Total Income 6,270 5,793 2,927 14,990 14,311

Expenditure

Personnel costs 3,408 1,212 2,541 7,161 6,526 Trading purchases 510 783 - 1,293 1,256 Property costs 182 1,208 587 1,977 1,792 Other expenses 1,142 633 2,309 4,084 4,185 Depreciation charge 95 136 565 796 722 Amortisation charge - - 136 136 176 Audit fees - - 69 69 52 Total Expenditure 5,337 3,972 6,207 15,516 14,709

Trading and Administration Activities Surplus/(Deficit) 933 1,821 (3,280) (526) (398)

There were no non-audit services provided by Deloitte during the year (2011: $4,000)


Notes to the Financial StatementsFor the year ended 30 June 2012 in thousands of dollars

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3. FUNDRAISING ACTIVITIES



2012 2011 2012 2011

Income

Public donations– Project partners 6,256 4,985 6,256 4,985 – Annual appeal 535 - 535 - – Direct mail 1,352 1,417 1,352 1,417 – Lottery 158 193 158 193 – Other 2,058 2,035 2,044 2,035 Special appeals– Public 17,145 103,754 17,145 103,754 – New Zealand Government (disaster relief) 500 7,184 500 7,184 – Interest 1,888 231 1,888 231 New Zealand Government (delegate support) 1,000 1,000 1,000 1,000 Contracts - 917 - 917 Legacies 1,290 1,511 1,278 1,511 Other 4 6 4 6 Total Income 32,186 123,233 32,160 123,233

Expenditure

Personnel costs 922 796 922 796 Other expenses 2,783 1,948 2,783 2,080 Total Expenditure 3,705 2,744 3,705 2,876

Fundraising Activities Surplus 28,481 120,489 28,455 120,357

4. NEW ZEALAND GOVERNMENT GRANTS FOR DISASTER RELIEF



2012 2011 2012 2011Philippines (floods) 500 - 500 - Pakistan (floods) - 500 - 500 Columbia (floods) - 134 - 134 Indonesia (volcanic eruption) - 200 - 200 Vietnam (floods) - 250 - 250 Sri Lanka (floods) - 100 - 100 Middle East/North African (civil unrest) - 1,000 - 1,000 International Disaster Relief 500 2,184 500 2,184 Canterbury Earthquakes - 5,000 - 5,000 Total New Zealand Government Grants for Disaster Relief 500 7,184 500 7,184


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5. ExPENDITURE ON HUMANITARIAN ACTIVITIES



2012 2011 2012 2011Personnel costs 3,160 2,562 3,160 2,562 Aid workers 1,689 1,184 1,689 1,184 International disbursements 1,258 1,203 1,258 1,203 Appeal activities 10,425 66,952 10,425 66,952 International levies 257 118 257 118 Other international projects - 80 - 80 Other expenses 1,740 2,473 1,740 2,473 Depreciation charge 347 316 347 316 Total Expenditure on Humanitarian Activities 18,876 74,888 18,876 74,888

Expenditure on Humanitarian Activities comprises:Humanitarian law 83 86 83 86 Disaster relief and development 15,565 71,232 15,565 71,232 Emergency management 393 406 393 406 Community activities 2,835 3,164 2,835 3,164 Total Expenditure on Humanitarian Activities 18,876 74,888 18,876 74,888

6. INTERNATIONAL DISBURSEMENTS



2012 2011 2012 2011International Federation of Red Cross and Red Crescent Societies

Afghanistan 140 100 140 100 Disaster relief supplies - 60 - 60 Timor-Leste 200 177 200 177 Pacific 107 6 107 6 Vietnam 150 95 150 95 International Committee of the Red Cross

South East Asia - 100 - 100 Pacific National Red Cross Societies

Cook Islands Red Cross 84 79 84 79 Fiji Red Cross 60 90 60 90 Kiribati Red Cross Society 40 40 40 40 Solomon Islands Red Cross Society 23 18 23 18 Tonga Red Cross Society 49 40 49 40 Tuvalu Red Cross Society 25 (15) 25 (15)Vanuatu Red Cross Society 43 41 43 41 Other Pacific Red Cross National Society support 33 67 33 67 Pacific and other telecommunications development 296 184 296 184 Regional warehouse 8 121 8 121 Total International Disbursements 1,258 1,203 1,258 1,203



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6. INTERNATIONAL DISBURSEMENTS (CONTINUED)



2012 2011 2012 2011

International Disbursements comprises:

Health and first aid 748 547 748 547 Disaster relief and development 181 266 181 266 Emergency management 304 405 304 405 Community activities 25 (15) 25 (15)Total Expenditure on Humanitarian Activities 1,258 1,203 1,258 1,203

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

7. SURPLUS FROM ALL ACTIVITIES



2012 2011 2012 2011

Revenue

Trading activities 12,063 10,652 12,063 10,652Administration activities 3,643 3,591 2,927 3,659Fundraising activities 32,186 123,233 32,160 123,233 Total Revenue 47,892 137,476 47,150 137,544

Expenditure

Trading activities 9,309 8,634 9,309 8,634Administration activities 6,315 6,168 6,207 6,075Fundraising activities 3,705 2,744 3,705 2,876Humanitarian activities 18,876 74,888 18,876 74,888Total Expenditure 38,205 92,434 38,097 92,473

Total Surplus from all Activities 9,687 45,042 9,053 45,071

Trading and Administration

The majority of this revenue is generated by first aid and emergency care education, Red Cross Shops and income from investments.

National Board members receive no remuneration for their governance services. Total remuneration received by the National Management Team (comprising the Chief Executive and eight direct reports) was $1,118,000 (2011; $1,054,000).

Fundraising Activities

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


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8. RESTRICTED FUNDS



2012 2011 2012 2011International appeals and development 347 567 347 567 Local projects and developments - 23 - 23 Meals on Wheels activities - 64 - 64 Emergency response units/vehicles - 68 - 68 Specific purpose legacies 36 1,730 36 1,730 Total Restricted Funds 383 2,452 383 2,452

9. CHRISTCHURCH RESERVE



2012 2011 2012 2011Opening balance 44,204 - 44,204 -

Funds received

Public donations 5,498 80,617 5,498 80,617 Interest income 1,888 230 1,888 230 New Zealand and other Governments - 11,936 - 11,936 Specific purpose donations (including other Red Cross National Society support) 11,415 14,694 11,415 14,694 Total funds received 18,801 107,477 18,801 107,477

Funds used

Resident grants 7,672 61,889 7,672 61,889 Response activities - 1,367 - 1,367 Recovery activities 1,800 17 1,800 17 Capacity building 1,137 - 1,137 -Total funds used 10,609 63,273 10,609 63,273

Total Christchurch Reserve 52,396 44,204 52,396 44,204

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.

All funds donated by the New Zealand public are to assist affected people and communities. This includes the provision of goods, cash grants and other support. Funds will not be used for Red Cross administration costs, staff salaries or transport and accommodation of Red Cross staff and volunteers.

Other Red Cross national societies launched appeals to raise money to support the initial response, long term recovery and strengthening disaster response capacity. All interest earned is reinvested into the Reserve. It is anticipated that due to the scale and continuing needs of the community that it may take in excess of five years to responsibly deliver aid and provide recovery services.

Red Cross established an independent Commission made up of community leaders to oversee the disbursement of donations.

Red Cross incurred additional costs of $668,000 (2011: $936,000) for the administration of the grant payment processes. These costs are included within Trading and Administration Activities. Funds from the Red Cross Foundation of $500,000 (2011: nil) were received which substantially covered this expenditure.



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10. CASH AND CASH EQUIVALENTS



2012 2011 2012 2011Cash and bank current deposits 11,807 16,664 11,292 12,322 Bank term deposits 51,601 37,145 47,089 37,145 Total Cash and Cash Equivalents 63,408 53,809 58,381 49,467

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

11. TRADE AND OTHER RECEIVABLES



2012 2011 2012 2011Trade receivables 942 1,196 942 966 Accrued interest and dividends 374 47 273 168 Other receivables and accruals 702 743 702 791 Total Trade and Other Receivables 2,018 1,986 1,917 1,925

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

12. INVESTMENTS



2012 2011 2012 2011Investments are categorised as:

Current 3,944 6,349 5,823 7,997 Non-Current 29,586 29,792 15,612 13,755 Total Investments 33,530 36,141 21,435 21,752

Investments comprise:

Red Cross Foundation deposits - - 21,297 21,614 Short term fixed interest 3,806 6,211 - - Long term fixed interest 16,888 17,258 - - Long term deposits 1,366 525 - - Equity securities 11,332 12,009 - - Other 138 138 138 138 Total Investments 33,530 36,141 21,435 21,752

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



2012 2011 2012 2011Red Cross Foundation Deposits

Opening deposits - - 21,614 21,695 Withdrawals during the year - - 109 1,156 Deposits during the year - - (426) (1,237)Closing Red Cross Foundation Deposits - - 21,297 21,614

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


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13. PROPERTY, PLANT AND EQUIPMENT



2012 2011 2012 2011Opening net book value 23,275 21,600 23,275 21,600Additions 2,183 1,191 2,183 1,191Disposals (56) (82) (56) (82)Revaluation (decrease)/increase (817) 1,604 (817) 1,604Depreciation charge (1,143) (1,038) (1,143) (1,038)Closing Net Book Value 23,442 23,275 23,442 23,275

Property, Plant and Equipment Comprises: Cost or Valuation Accumulated Depreciation

Net Book Value

Depreciation Charge

Land and buildings 20,503 1,031 19,472 189Equipment 2,902 2,168 734 270Computer hardware 1,527 1,307 220 125Furniture and fittings 2,127 1,074 1,053 166Motor vehicles 4,032 2,112 1,920 393Work in progress 43 - 43 - Total Property, Plant and Equipment 2012 31,134 7,692 23,442 1,143

Land and buildings 21,273 844 20,429 200Equipment 2,468 1,901 567 245Computer hardware 1,348 1,185 163 95Furniture and fittings 1,911 913 998 136Motor vehicles 2,978 1,860 1,118 362Total Property, Plant and Equipment 2011 29,978 6,703 23,275 1,038

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

14. INTANGIBLE ASSETS



2012 2011 2012 2011Opening net book value 634 771 634 771Additions 12 39 12 39Amortisation charge (136) (176) (136) (176)Closing Net Book Value 510 634 510 634

Intangible Assets Comprises: Cost Accumulated Depreciation

Net Book Value

Amortisation Charge

Software 1,166 656 510 136Total Intangible Assets 2012 1,166 656 510 136

Software 1,154 520 634 176Total Intangible Assets 2011 1,154 520 634 176



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15. NON-CANCELLABLE OPERATING LEASES



2012 2011 2012 2011Less than one year 1,397 1,323 1,397 1,323Between one and five years 1,028 2,425 1,028 2,425More than five years - - - - Total Non-Cancellable Operating Leases 2,425 3,748 2,425 3,748

16. CAPITAL COMMITMENTS

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

17. TRADE AND OTHER PAYABLES



2012 2011 2012 2011Trade payables 2,060 1,028 2,060 891 Accruals 426 539 411 539 Licenses to occupy 24 24 24 24 Total Trade and Other Payables 2,510 1,591 2,495 1,454

18. PROVISION FOR EMPLOYEE ENTITLEMENTS



2012 2011 2012 2011Annual leave 590 570 590 570 Payroll and other entitlements 229 182 229 182 Total Provision for Employee Entitlements 819 752 819 752


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19. NET ASSETS



2012 2011 2012 2011Loans and Receivables

Cash and cash equivalents 63,408 53,809 58,381 49,467 Trade and other receivables 2,018 1,986 1,917 1,925 Investments - - 21,435 21,752 Total Loans and Receivables 65,426 55,795 81,733 73,144

Fair Value through Comprehensive Income

Investments 33,530 36,141 - - Total Fair Value through Comprehensive Income 33,530 36,141 - -

Total Financial Assets 98,956 91,936 81,733 73,144

Non-financial assets 24,691 24,956 24,691 24,956 Total Assets 123,647 116,892 106,424 98,100

Amortised Cost

Trade and other payables 2,510 1,591 2,495 1,454 Provisions 2,958 4,048 2,958 4,048 Total Amortised Cost 5,468 5,639 5,453 5,502

Total Financial Liabilities 5,468 5,639 5,453 5,502

Non-financial liabilities 413 276 413 276 Total Liabilities 5,881 5,915 5,866 5,778

Net Assets 117,766 110,977 100,558 92,322

20. CONTINGENCIES

There are no contingencies at balance date (2011: nil).

21. SIGNIFICANT EVENTS AFTER BALANCE DATE

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



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AUDITOR’S REPORT

Auditor’s Report

46

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

As at 30 June 2012

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

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

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

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

OfficialsInternational 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 (retired February 2012) Peter Martin Belinda Stanley

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

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

BankASB Bank Limited

Legal AdviserBurrowes and Company

AuditorDeloitte

National OfficeRed Cross House, 69 Molesworth Street P O Box 12 140, Thorndon, Wellington 6144, New Zealand Ph. 64 4 471 8250 | Fax. 64 4 471 8251 www.redcross.org.nz | [email protected]


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