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ANNUAL REPORT 2010

NEW ZEALAND RED CROSS ANNUAL REPORT 2010 1

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

landmine injuries.

New Zealand Red Cross helps people in need, whoever and wherever they are. Our aim is to prevent and alleviate suffering, thereby enhancing human dignity. We focus on areas where we can make a real difference, responding to disasters, conflicts and vulnerability at home and overseas.

Our reach is global, through a network of 185 other National Red Cross and Red Crescent Societies. Across the globe, millions of members and volunteers work in their own communities to enhance resilience to adversity and to respond when crisis strikes.

Our volunteers, members and staff make a real difference every day. This is how New Zealand Red Cross is mobilising the power of humanity at home and around the world.

ISSN 1178-6523

2 NEW ZEALAND RED CROSS ANNUAL REPORT 2010 NEW ZEALAND RED CROSS ANNUAL REPORT 2010 3

AID WORKERS

AID WORKERS SENT OVERSEAS

INTERNATIONAL HUMANITARIAN LAW

PEOPLE TRAINED

285,000 11,000

BREAKFAST IN SCHOOLS

BREAKFASTS SERVED

COMMUNITY TRANSPORT

PATIENTS TRANSPORTED

PEOPLE SAVERS

KIDS TAUGHT FIRST AID

21EMERGENCY MANAGEMENT

TEAMS TRAINED TO HELP

28%INCREASE

MEALS ON WHEELS

HOT MEALSDELIVERED

RED CROSS SHOPS

NUMBER OF SHOPS

FIRST AID

COURSEPARTICIPANTS

SPECIAL APPEALS

RAISED FOR EMERGENCIES

67,583$8.7 million697,000

21%INCREASE

INTERNATIONAL PROGRAMMES

VULNERABLE PEOPLE ASSISTED

257,000

1,080

INTERNATIONAL AID

SPENT ON PACIFIC DEVELOPMENT PROGRAMMES

$847,00051

WHAT WE’VE ACHIEVED AT HOME AND OVERSEAS

In 2010, we also marked 50 years since we sent our first aid worker overseas.

In spite of a tough external environment, many of our community programmes continued to expand during the year and donations actually increased.

These changes – and the obvious strong support from donors, members and volunteers – promise to help New Zealand Red Cross become even stronger to meet the humanitarian challenges ahead.

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


NATIONAL PRESIDENT’S REPORT

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

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

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

New Zealand Red Cross has a particularly close association with all the Pacific Red Cross Societies and I enjoy meeting up with their governance people, their staff, and their volunteers, as well as their beneficiaries. During the 2009/2010 financial year, we worked together on the International Federation of Red Cross and Red Crescent Societies’ new strategic plan, Strategy 2020, and built a strong relationship with Pacific National Societies, which was helpful when we supported Samoa Red Cross Society after the tsunami in September 2009. It was an extraordinary experience for me to talk to a woman whose house had been totally destroyed on that fateful day, but whose family had survived. The first help they received was from Red Cross volunteers.

Recognising that all New Zealand Red Cross people need to be valued, we initiated a transformation in our structure in 2009. The transformation’s basic purpose is to rejuvenate New Zealand Red Cross membership and to curb the closing of branches. Extensive consultation with members was followed by a new Constitution being drafted, which was approved by

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

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

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

“THERE IS NOTHING MORE REWARDING THAN TO RECEIvE THE WONDERFUL SMILE AND SHy

THANk yOU FROM A CHILD EATING bREAkFAST bEFORE THEIR SCHOOL DAy STARTS.”

Penny masonNational President


“WE WILL TACkLE THE MAJOR CHALLENGES CONFRONTING US IN THE NExT DECADE AND WILL bE DOING MORE, DOING bETTER AND REACHING FURTHER TO ENSURE THE SERvICES WE PROvIDE REMAIN RELEvANT IN A CHANGING WORLD.”

CHIEF EXECUTIVE’S REPORT

Real diffeRence at home

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

Real diffeRence oveRseas

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

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

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

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

tRusted to make it haPPen

After his experience on the battlefield in Solferino in 1859, Henry Dunant, the visionary behind Red Cross, proposed voluntary “relief societies for the purpose of having care given to the wounded in wartime”. Today, New Zealand Red Cross remains committed to helping people in need, whether because of conflict, disaster or for other reasons. Our assistance depends on the generosity of the New Zealand public, the support we receive from the New Zealand Government and the success of our shops and first aid courses.

New Zealand Red Cross generated total income in the 12 months leading up to June 2010 of $32 million. After our expenditure, funding available for programmes and emergency operations was $16.8 million, which exceeded the 2008/2009 financial year record of $13.4 million.

We receive many regular donations and one-off gifts for ‘special appeals’ for particular emergencies. We also gratefully acknowledge the generous support of a number of trusts and corporate supporters. Donors trust New Zealand Red Cross to make a difference; they feel an affinity with our values, principles and integrity, and they rely on us to keep costs to a minimum. We value that trust and honour the responsibility it places on us.

I would like to acknowledge the contribution of volunteers and the hard work and dedication of all our staff. Together we can look back with satisfaction that we have made a real difference in the world.

looking ahead

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

provide remain relevant in a changing world. We face many adverse trends including climate change, environmental degradation, urbanisation, violence, forced migration, new and emerging diseases, and insecurity of food, water and natural resources. We will emphasise disaster preparedness to empower communities to become more resilient to future shocks and crises. In order to respond effectively, we will continue to build a stronger New Zealand Red Cross. Our recently completed transformation of governance structures will help enable this.

We will ensure well-informed representation in key forums and vigorously promote our work, founded on good evidence and targeted communications, to foster strong cooperation with governments, youth, academia, the private sector and the people we serve.

john waReChief Executive


stReet aPPeal VOLUNTEER COLLECTORS

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

good moRniingSTUDENTS AT MEREMERE SCHOOL

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

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

kay Reid MEALS ON WHEELS DRIVER

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

santino deng REFUGEE COMMUNITY GARDEN FACILITATOR

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

mikey PRyce AUCKLAND RETAIL VOLUNTEER

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

REAL PEOPLE IN ACTION“I DID A bIT OF RESEARCH AND FOUND THAT THE RED

CROSS FITTED WITH My vALUES AND bELIEF SySTEMS.”Brigid Reilly, volunteer, Red cross shop.


GOVERNANCE

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

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

The National board controls New Zealand Red Cross. It has been mandated to implement the policies of the National Council and to carry out the objectives of New Zealand Red Cross within the framework of these policies and to ensure the operational efficiency of New Zealand Red Cross. Its composition and some election procedures will change in future to reflect the new area councils.

The National board is sad to have lost one of its youngest board members, Jennifer Clark, who came from Auckland. She passed away in June 2010 after a battle with cancer and her large contribution was greatly missed after her resignation earlier in the year. We also record with sadness the death of John Wilson, who was involved with New Zealand Red Cross

for more than 50 years. He served on the Hutt valley and Wellington branches, and was elected to New Zealand Red Cross Society’s national executive and to its highest office, that of National President.

During 2009/2010, New Zealand Red Cross developed a board charter that outlines how the National board guides, governs, sustains, protects and develops New Zealand Red Cross in accordance with its goals. It also provides the terms of reference for the National board, its roles, its conduct and its tasks. This board charter will be part of a comprehensive induction for new board members after the National Council meeting in November 2010.

new constitution

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

In consultation with members, a new members’ handbook has been completed containing comprehensive information and guidance for members.

Another new feature is a code of conduct to guide members in abiding by the Fundamental Principles of the International Red Cross and Red Crescent Movement.

memBeRs and BRanches

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

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

In separate photo: Allison Craw.

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

1 1INTERNATIONAL MOVEMENT 18

6N

ATIO

NA

L SO

CIE

TIES

16AREAS

100BRANCHES

159FULL TIME STAFF

4,000MEMBERS

20,000VOLUNTEERS

NEW ZEALANDRED CROSS


INTERNATIONAL HUMANITARIAN LAW

Opposite page: A Somali Red Crescent Society volunteer makes someone’s day by delivering a Red Cross message from a missing family member.

Top left: At Trentham Military Camp, New Zealand Red Cross Policy and Advocacy Manager Fran Albertario trains soldiers in the laws of war.

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

bottom left: Satellite phones help connect people displaced by conflict or disaster.

Right: Cambodians learn more about Red Cross and international humanitarian law, which aims to prevent or at least limit the excesses of war.

International humanitarian law (IHL), or the law of armed conflict and the laws of war, sets out rules to limit, for humanitarian reasons, the effects of armed conflict. It protects people who are not or no longer participating in hostilities and seeks to restrict the means and methods of warfare.

The implementation of IHL has been a primary objective of the International Red Cross and Red Crescent Movement (the Movement) since the very early days, due to the International Committee of the Red Cross’ (ICRC’s) specific role and mandate in this area.

National Red Cross or Red Crescent Societies have an important role to play due to their auxiliary status in conjunction with their governments, to ensure respect for IHL and protection of the emblems (red cross, red crescent and red crystal) of the Movement.

RestoRing family links

New Zealand Red Cross continues to reunite families separated by conflict or disaster through our Restoring Family Links programme. Inquiries during the year included three families split up by the Second World War in Poland and Russia.

More usual cases involve New Zealand Red Cross tracing refugees’ families, often after many years of no contact. One told us: “I would like to take a moment to appreciate all the help you have given me, which I am forever grateful for. I would like to inform you that my family has called me, and I am so happy because after five years I have found them. All of that is because of you. I will be forever indebted to you. Thanks again for everything.”

RePoRting waRs

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

waR law

Thirty students from Wellington high schools attended ‘War Law’, a successful one-day workshop on international humanitarian law hosted by New Zealand Red Cross and the Centre for Strategic Studies at victoria University in August 2009. The event coincided with the 60th anniversary of the adoption of the Geneva Conventions of 1949.

Participant Iain Latham-Prokopowicz said he was particularly impressed by a mock minefield set up by a New Zealand Army mine action expert. “I didn’t realise how painstakingly slow mine removal was – and it is alarming to know that so many remain undetonated,” said the student. “It was interesting to learn how broadly New Zealand Red Cross operates in the world.”

INTERNATIONAL


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

In response, New Zealand Red Cross has pioneered unique systems that are both simple to use and sophisticated enough to overcome the inevitable challenges that disasters bring. An essential element of their success is training specialists to use the equipment.

New Zealand Red Cross has pre-positioned standardised communications equipment, such as solar-powered satellite phones, in 11 Pacific countries and Timor-Leste, and trained National Society colleagues to use and maintain it.

We continued to develop the skills of staff and members of an information technology and telecommunications Emergency Response Unit, who, in 2009/2010, visited Austria, Fiji, Finland, Malaysia, New Caledonia, Papua New Guinea, Singapore, Sweden, Tokelau, Tonga and vanuatu for training.

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

In addition, New Zealand Red Cross ran a two-week course for participants from the Cook Islands, Malaysia and Austria.

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

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

“RED CROSS WERE THE FIRST PEOPLE HERE. I ASkED THEM TO SEND SOMEONE UP HERE TO HELP ME. THAT SAME DAy, THEy bROUGHT US CLOTHES, FOOD, bOTTLES OF WATER AND A TENT. IT WAS SO NICE TO SEE THE RED CROSS, TO kNOW THAT SOMEbODy CARED.” letiu lee

tsunami operation in Samoa in 2009 before normal means of communication were re-established.

Plans for the future include expanding the Emergency Response Unit from 23 to 30 members, maximising opportunities to train and be trained, and continuing to develop world-class communications tools that are adopted as the international Red Cross standard.

INTERNATIONAL



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

In 2009/2010, the pool of available aid workers increased from 100 to almost 120 people with expertise in health, organisational development, construction, logistics, water and sanitation, and information technology and telecommunications. New Zealand Red Cross hosted its annual week-long training course in September 2009. This course attracted a significant number of high-quality applicants from a wide range of skilled people across New Zealand.

New Zealand Red Cross sent 51 aid workers on 41 different missions to help people in 24 countries including Afghanistan, China, Iraq, Jordan, Pakistan, Papua New Guinea, Samoa, Somalia and Timor-Leste in 2009/2010. Their skills included health, water and sanitation, security, logistics and administration. The aid worker programme is highly regarded

internationally; kiwi aid workers’ versatility and ‘can do’ attitude is admired throughout the Red Cross.

In September 2009, New Zealand Red Cross went to the aid of Samoa and Tonga, which were rocked by earthquakes and a tsunami. Aid workers specialising in field assessment and coordination, logistics, water and sanitation, and communications worked alongside National Red Cross Society colleagues to distribute food, water and shelter materials in the days after the disaster.

In January 2010, Haiti was struck by an earthquake that killed more than 225,000 people. New Zealand Red Cross aid worker, kevin Duignan, travelled to Haiti for a six-month mission to help with shelter, which was especially vital before the June to November hurricane season.

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

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

IN HAITI, THE RED CROSS HELPED JUNIOR JOSEPH MARC bUILD HIS OWN HURRICANE-PROOF SHELTER. “I DIDN’T kNOW ANyTHING

AbOUT CONSTRUCTION bEFORE WORkING ON THIS HOUSE. I WORkED AS AN APPRENTICE AND WAS AbLE TO LEARN FROM SOME ExPERIENCED CARPENTERS. THIS IS THE FIRST TIME I HAvE

My OWN HOUSE, A PLACE I CAN CALL HOME.” junior joseph marc

photo competition after the Sichuan earthquake in China.

bottom right: New Zealand Red Cross aid worker Victoria Fray helps safe drinking water reach people who moved inland after the tsunami in Samoa.

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

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

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

7.0ON 12 JANUARY 2010 A MAGNITUDE

EARTHQUAKE HIT HAITI

2MILLIONPEOPLE DISPLACED

NEW ZEALANDERS GENEROUSLY CONTRIBUTED

$1.5 which went towards health professionals, blankets, water containers, family tents, tarps and kitchen sets to

help these people.

million

INTERNATIONAL


5 Pakistan lindah jury Health Barbara turnbull Health louise humphreys Health daniel cowley Economic Security judy owen Health simin alipour Health

AID WORKER PROGRAMME

5

3 united aRaB emiRatesnicholas murdoch Logistics

4 afghanistan Rachael maunsell Health

2

1 geoRgia joyce hood Health

2 iRaqjanet askew Health louise king Health joyce hood Health guru dev singh Health gail corbett Health andrew cameron Health

4

10

11

8 yemenandrew cameron Health daniel cowley Economic Security

9 somalia felicity gapes Health

10 kyRgyzstan grant hargreaves Logistics

11 sRi lanka niall shepherd Security

9

8

6

24 haiti

kevin duignan Shelter denise oakenfull Security

24

7

6 joRdan jodye tomalin Security

7 ethioPia greer lees Water and Sanitation

20 Pacific Region Rosemary fenton

Healthdouglas clark

Monitoring and Evaluation

Peter winthrop First Aid

21 tongadouglas clark

Monitoring and Evaluation

carl Burr Emergency Response Unit

nicola o’connor Emergency

Response Unit

20

1

14

13 indonesia jodye tomalin Security

14 chinawarwick inder Organisational Development

15 PhiliPPinesdavid easson Economic Security louisa akavi Health

21

22

22 samoavictoria fray Water and Sanitation Rosemarie north Communications douglas clark Monitoring and Evaluationdean manderson Logistics

1823 23 cook islands

clare shave Finance kevin duignan Shelter

19

17 timoR-lesteamanda scothern Organisational Development anna maree delaney Health Rosemary fenton Health

18 PaPua new guineanicola o’connor Emergency Response Unitmichael carson Emergency Response Unit

19 solomon islandsmatthew Poole Emergency Response UnitRex aubrey Emergency Response Unit

17

judy gilmore Health wendy stuart Health

12 south east asia Region jane edgar Water and Sanitation malcolm mckinley Organisational Development alan Bradbury Disaster Management

INTERNATIONAL

13

15

16

3

16 asia/Pacific zonemelanie ogle Reporting Delegate jeremy francis Logistics

12


NATIONAL PROGRAMMES

community seRvices

meals on wheels

Meals on Wheels has been changing with a tightening up of eligibility and the availability of commercial options at competitive rates. This has meant a steady decline in the number of meals delivered each year, and this trend is predicted to continue.

However, it remains an important part of New Zealand Red Cross’ community service to deliver a hot meal with a friendly face to the housebound and elderly.

hospital and community transport

This programme gives people who cannot access or afford transport to hospital the ability to keep appointments for treatment, thus improving their quality of life.

Dora Riepan, 84, found travelling to medical appointments a burden. Discovering the free kapiti Community and Health Transport shuttle made her life easier and removed the stress of trying to organise getting to the hospital.

‘They come right to my door to pick me up, wait at the hospital until I’m done and then take me home again all for free.” Dora Riepan.

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

Breakfast in schools

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

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

“IT IS ExCELLENT TO HAvE THAT HOT MEAL IN THE MIDDLE OF THE DAy, ESPECIALLy IN THE WINTER TIME.

AND TO kNOW THAT I DON’T HAvE TO, WITH My LEGS THE WAy THEy ARE, WALk bACkWARDS AND

FORWARDS TO MAkE A MEAL. THEy’RE ALREADy PREPARED …

AND THEy ARE DELICIOUS.” Pauline fannin, meals on wheels recipient, auckland

Top right: volunteer driver Jo Starkey delivers a hot midday meal to John Fowler in Christchurch. New Zealand Red Cross Meals on Wheels delivered 697,000 meals this year, mostly through a contract with the health authorities, to people who are older or housebound.

bottom right: Max Clark, a volunteer community transport driver from Nelson assists 88-year-old Iris Inns from the Red Cross van.

“WE HAvE HAD SOME CHILDREN WHO’vE COME TO SCHOOL HUNGRy AND SO THIS IS AN OPPORTUNITy FOR THEM TO HAvE bREAkFAST. IT MEANS THAT WHEN THEy START THE SCHOOL LEARNING DAy THEy START IN A POSITIvE WAy bECAUSE THEy’vE ALREADy HAD THEIR bREAkFAST AND THEy’RE READy TO START LEARNING.” heather green – Principal, meremere school

13,400 201312,460 201211,500 201110,059 20107,874 2009



BREAKFASTSCOMMUNITY TRANSPORT

PATIENTSTRANSPORTED

SCHOOLS

2009 2010 2011 2012 2013213,939 285,000 300,000 300,000 300,000

672012 672013672011462009 612010


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

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

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

gardening for health

At the Mangere Refugee Resettlement Centre, a group of young volunteers, many former refugees, pass on their skills and knowledge about gardening in the New Zealand environment to the new arrivals.

The ‘gardening for health’ project has a focus on planting and growing vegetables, but it also offers a sense of empowerment through working towards self-sufficiency and ‘laying down roots’. The project has been incorporated into the health programme at the centre and is part of the district health board’s Let’s beat Diabetes programme.

emeRgency management

Two new response teams were established in Porirua and Greymouth, and a mobile welfare team in Wairoa. At a 36-hour exercise at an oil industry site in Opunake, a group of 54 North Island team members were trained by New Zealand Red Cross in casualty handling, light rescue, first aid and welfare skills.

In May 2010, the Nelson and Timaru teams responded to floods by providing support to evacuees; in June 2010, the Rotorua welfare team assisted over 100 people evacuated from flooded homes in Whakatane.

Intensive training during 2009/2010 helped more than 40 Red Cross response team members from across the country

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

youth

save-a-mate

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

Preparing youth for emergency

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

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

People savers

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

looking foRwaRd

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

Northland, Gisborne, bay of Plenty and Canterbury. For example, research predicts the growth in community transport to continue, and we expect to expand this service into three or four communities a year over the next 10 years.

Our emergency management officers continue to provide support to area managers and their teams, and work to develop consistent national standards. We plan to establish more response and welfare teams to build our capacity.

by 2020, New Zealand Red Cross plans to be the lead agency for the training and mobilisation of volunteers in an emergency, with several thousand trained volunteers covering the country. This will contribute towards fulfilling our organisational mission of building community resilience.

6002011

882010

12009

EMERGENCY MANAGEMENT

PEOPLE SAVERS

KIDS TAUGHTSAVE-A-MATE

TEAMS9602013

7202012

YOUTH PARTICIPANTS

2009

9,7

66

2010

10,9

73

2011

16,0

00

2012

18,5

90

2013

20,9

00

142009 212010 372011 412012 412013


HUMAN RESOURCES AND VOLUNTEERS

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

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

staff induction

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

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

volunteeR management

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

This page: volunteer driver Brian Lahman takes Rachel Wong and other people from their homes on the kapiti Coast to Wellington Hospital for appointments.

Opposite page top: volunteers share a laugh as they prepare breakfast at Corinna School in Porirua.

“My FAMILy CAN RELAx; THEy kNOW I AM TAkEN CARE OF. I DON’T HAvE TO WORRy AbOUT TICkETS. IT’S PEACE OF MIND FOR My FAMILy AND IT’S PEACE OF MIND FOR ME.” Rachel wong

Opposite page bottom left: Red Cross volunteer Tai Poon steam-irons clothes at the karangahape Road shop in Auckland.

Opposite page bottom right: Students sing while helping Red Cross raise funds during our annual street appeal.

Our aim with both of these projects is to ensure New Zealand Red Cross is recognised as a great place to work and volunteer in New Zealand.

Working closely with our marketing and communications team, a campaign during national volunteer awareness week in June 2010 reinforced this message.

For 2010/2011, we plan a number of initiatives to build strong capability and leadership within the New Zealand Red Cross family and programmes to support staff members and volunteers develop and grow in their roles.


FIRST AID

The 2009/2010 year was a challenging period for the first aid training industry following government changes that created an unregulated environment that allowed companies to introduce shorter courses and lower-quality training.

New Zealand Red Cross decided to retain the quality level and curriculum of the existing courses delivered in the same traditional timeframes. This resulted in a loss of some bookings, which was to be expected in the current economic climate. We trained 67,583 participant numbers in 2009/2010. However, looking ahead, the redesigned unit standards and New Zealand Qualifications Authority training requirements due for release in late 2010 position us well for the future.

In February 2010, we implemented xRM, our new state-of-the-art client database and course management system. For the first time, we have the ability to review first aid training nationally and to streamline the course booking, management and accounting processes. Although developed specifically for first aid training, the system has also been designed to be applicable to other aspects of New Zealand Red Cross.

We opened a new training venue in Queenstown in September 2009, and new training rooms in Greymouth in May 2010. both locations already had training staff, but relied on hired venues to run courses. both have been set up to national standards that include ceiling-mounted projectors, comfortable chairs and well-designed teaching environments. We have also upgraded 15 other locations with ceiling-mounted projectors, so that courses can be taught in line with the national curriculum’s standards by DvD. The aim is to deliver high quality courses that give our customers confidence to provide first aid in an emergency when called on.

Our course instructors are an invaluable resource to New Zealand Red Cross. During 2009/2010, we upgraded their uniform to project a professional and relaxed culture in our courses. Using the colours of Red Cross, the new national uniform is comfortable and yet clearly brands our instructors as a part of New Zealand Red Cross.

Sales of first aid kits and automated external defibrillators (AEDs) were steady during the year. It was great to record several occasions where lives had been saved or serious injuries minimised by our training and by the use of our products.

the futuRe

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

Top: Instructor Izaak Bates takes participants at an Auckland course through a basic first aid course. New Zealand Red Cross trains nearly 68,000 adults a year in first aid.

bottom: At kilbirnie Red Cross shop in Wellington, Manager Janice MacFarlane, right, chats to a customer.

RED CROSS SHOPS

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

ouR Retail model

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

We have re-opened a store in Dargaville to replace one destroyed by fire at the beginning of 2009. This is a smart new store, much larger than the previous shop, and much enjoyed by the volunteer staff and customers.

Processing centres, where donations are sorted, are now operating in Tauranga, Hamilton and Palmerston North.

We have obtained stock from the same supplier as Australian Red Cross, and are indebted to brands such as Country Road, Witchery and Pumpkin Patch, who have very kindly assisted us by donating some end-of-line and seconds stock. Fashion brands have also provided us with end-of-line jewellery.

PeoPle

A positive outcome of the retail strategy has been an increase in the number of volunteers, who are a diverse mix of age groups and cultures.

With the growth of the retail business, we have employed new regional retail managers in Auckland and Christchurch, joining those already in place in Hamilton and Wellington. The four managers will aim to open new stores and gradually revamp our existing stores to bring the new New Zealand Red Cross retail look to a consistent standard across the country.

A new partnership, the first in Australasia, was developed in 2009/2010 with Country Road, to provide an incentive for people to donate higher quality clothes. This was launched on 1 July 2010.

the futuRe

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

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

“GOING THROUGH My HEAD WAS I NEED TO kEEP THIS GUy ALIvE AND I ALSO WAS THINkING OF ALL THE THINGS I’vE bEEN TAUGHT WITH FIRST AID TRAINING.” gary mcnelly, who used Red cross first aid skills to help a severely injured teenager.

RETAIL SHOPS

FIRST AID

RETAIL SHOPS

2009 2010 2011 2012 2013

38 46 54 60 60

COURSEPARTICIPANTS

2009 2010 2011 201267,583 72,000 74,000

201376,00068,668


FUNDRAISING

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

The ongoing recession has affected New Zealand Red Cross in common with most other New Zealand charities. However, thanks to the remarkable generosity of our donors, our income from fundraising has increased. Our supporters have shown exceptional generosity in difficult economic times. We would like to thank them for making our work possible and look forward to their ongoing support, as we put our new strategy into action.

In the 2009/2010 year, our individual supporters gave more generously than ever before, in spite of the recession. During the year, 8,800 new supporters made a commitment to donate monthly – evidence of the success of our regular giving investment programme. We also received $1 million in response to direct mail appeals.

We raised over $429,000 during our annual appeal week in March 2010 from street and door-to-door collections and events nationwide.

During 2009/2010, the fundraising team processed over $1.5 million of bequest income and actively generated over 40 new bequest enquiries.

The cost of fundraising as a percentage of fundraising income (excluding direct government contributions) was 18.7% (25.2% in 2008/2009).

New Zealand Red Cross joined forces with representatives from five other National Societies and the International Federation of Red Cross and Red Crescent Societies, to establish a Red Cross Red Crescent Asia Pacific Fundraisers’ Network. We organised and hosted a four-day skill sharing ‘hui’ in Auckland for 30 fundraising and communications colleagues from 18 National Red Cross and Red Crescent Societies in the Asia Pacific zone.

We expect that from now until 2020 there will be a growing demand for New Zealand Red Cross services, both in New Zealand and overseas. To meet this challenge, we will pursue a fundraising strategy of growth, visibility, and efficiency. We will pursue a growth strategy through attracting new donors who will expand revenues in future years. We will continue to grow our regular giving programme, engaging more members of the public with our work.

Our growth will be supported by a strategy where our prime objective is to be noticed. Through our fundraising, we will raise awareness of our domestic activities such as breakfast in Schools and People Savers (an introduction to first aid for children). We will seek corporate partners to help support and promote these activities in order to attract future supporters and donors.

We will leverage this support to increase our influence with foundations and other forms of institutional funding.

We recognise that cultivating relationships over time is an important element for donors of all kinds.

by 2020 we aim to have:

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

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

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

• secured greater levels of funding from trusts and other institutions.

CORPORATE PARTNERSHIPS

new zealand Post gRouP – saving lives togetheR

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

telecom – emeRgency management teams suPPoRteR

Earthquakes happen. So do tornadoes, hurricanes, power outages, floods and bushfires. When an emergency occurs here in New Zealand the outcome may well depend on how well we respond.

New Zealand Red Cross have recruited, trained and equipped two new emergency management teams in Auckland and Whangarei thanks to Telecom’s community investment. These new teams mean New Zealand Red Cross now provides effective emergency response coverage in all the major population centres in New Zealand.

Telecom is helping us build the capacity of local communities by increasing skills and equipping people to care for each other. New Zealand Red Cross enhances community resilience through our emergency management teams, by providing first aid training for adults and children and a range of other initiatives. Saving a life is the ultimate humanitarian act.

PRogRessive enteRPRises – helPing make BReakfast in schools PossiBle

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

New Zealand Red Cross works with the schools to provide the resources and volunteers to deliver the food and serve breakfasts each morning. The programme has been well received with feedback from school principals and teachers attesting to increased attentiveness, reduced truancy, better learning outcomes and improved behaviour from some participants.

Since the programme started as a pilot in two South Auckland schools, it has extended to 61 schools nationwide and has delivered over 530,000 meals.

countRy Road – making a stylish diffeRence

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

PaRtneRshiPs and PeoPle foR 2020

We believe that we can have the greatest impact by working in partnership with a select number of corporate supporters. Currently, companies support New Zealand Red Cross in many different ways. Their committed and long-term financial support enables us to plan ahead and fund valuable work.

We are extremely grateful to everyone who has made our work and achievements possible. We hope New Zealand businesses will be inspired to support and fund our future ambitions.

New Zealand Red Cross volunteers and members collect funds on the streets of

Auckland in March 2010 as part of our annual appeal fundraising drive.


MARKETING AND COMMUNICATIONS

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

• a social media strategy

• a new corporate video

• a presentation and function at Parliament

• a marketing and branding approval procedure throughout New Zealand Red Cross.

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

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

• launching our own Facebook and Twitter pages and communications plan in April

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

• raising the awareness of our national programmes, particularly breakfast in Schools

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

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

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

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

• Aid worker victoria Fray, who restored water and sanitation facilities after the Samoa tsunami, shown on breakfast on Tv One in April

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

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

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

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

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

“A STRONG COMMUNICATIONS-MINDED CULTURE bUILDS THE CAPACITIES OF NATIONAL SOCIETIES by ALLOWING THEM TO bE SEEN, HEARD, UTILISED AND, ULTIMATELy, bETTER RESOURCED TO HELP PEOPLE IN NEED.”strategy 2020, international federation of Red cross and Red crescent societies

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


FINANCIAL SUMMARY 2010

EDUCATION & TRAINING

RETAIL OPERATIONS

INVESTMENTINCOME

FUNDRAISING

SPECIAL APPEALS

LEGACIESNZAID

OTHER

WHERE DID THE MONEY COME FROM?

HOW DID WE HELP VULNERABLE PEOPLE?

2010 2009

EDUCATION & TRAINING

2010 $6,133,0002009 $6,328,000

RETAIL OPERATIONS

2010 $3,931,0002009 $2,308,000

INVESTMENT INCOME

2010 $2,444,0002009 $2,898,000

FUNDRAISING

2010 $7,750,0002009 $6,831,000

SPECIAL APPEALS

2010 $8,403,0002009 $6,003,000

LEGACIES

2010 $1,719,0002009 $1,002,000

NZAID AID WORKER PROGRAMME

2010 $1,000,0002009 $1,000,000

OTHER

2010 $946,0002009 $1,227,000

2010 200 9

2010 $8,402,0002009 $6,046,000

2010 $4,337,0002009 $5,152,000

2010 $2,420,0002009 $1,668,000

SPECIAL APPEALS


COMMUNITY ACTIVITIES (NZ)*

EMERGENCY MANAGEMENT (NZ)*

2010 $347,000 2009 $364,000

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

Actual2010

Planned2010

Actual2009

Actual2008

international Programmes

Delegate deployments achieved 55 65 56 55Delegate deployment months achieved 260 300 290 350Number of IT&T ERU technician missions achieved. 20 16 11 n/aNumber of international special appeals supported 15 - 8 11Contributions to international special appeals 8.4M - 6.0M 4.2MDevelopment programmes supported 7 6 6 8Development grants to Pacific National Societies 8 8 8 7Restoring Family Links requests administered 75 - 99 72Disaster relief family kits stored 1,000 1,000 1,000 n/a

emergency management

Number of operational Red Cross response teams 21 20 14 14

community Programmes

Develop new national programmes 1 1 2 - Community training participants 10,973 12,800 9,766 14,699 Meals on Wheels delivered 696,875 760,000 759,532 747,731 Refugees supported 529 265 1,072 938 IHL seminar/training participants 1,080 855 865 4,962 breakfasts served in decile 1 schools 285,429 214,000 213,939 70,540 Patients transported in community transport programmes 10,059 7,900 7,874

education and training

Maintain registration as PTE Yes Yes Yes YesCommercial training participants 67,583 73,000 68,668 64,357

Retail

Number of shops (including branch shops) 46 50 38 38New shops opened 8 12 4 3

Statement of Service PerformanceFOR THE YEAR ENDED 30 JUNE 2010

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


Chief Financial Officer’s Review Statement of Financial PerformanceFOR THE YEAR ENDED 30 JUNE 2010

In the year under review, our financial position improved as a result of a revaluation of our investments and significant legacies left to New Zealand Red Cross. During the year we were able to commit a record $15.5 million to our humanitarian activities, an increase on the $13.2 million in the previous year.

The Society, before consolidation of the New Zealand Red Cross Foundation, recorded a surplus of $1.3 million after expenditure on operational and humanitarian activities. This compares with a surplus of $324,000 in the previous year.

After consolidating the financial results for the New Zealand Red Cross Foundation, a surplus of $2.9 million has been reported, which includes an increase in the fair value of investments of $1.5 million. This compares with a deficit of $3.5 million in the previous year.

A soft commercial rental market in Wellington has led to a decrease in the fair value of Red Cross House by $1.0 million, which has resulted in the Group recording total comprehensive income of $1.9 million for the year.

Consolidated total funds at 30 June 2010, were $62.3 million (2009, $60.7 million) which includes property, plant and equipment of $21.6 million (2009, $23.5 million), and investments of $35.8 million (2009, $34.0 million).

oPeRating activities

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

coRe activities

Our humanitarian work or core activities encompasses programmes in New Zealand including Meals on Wheels, community transport, community training, breakfast in Schools, and emergency response, and international activity including our international aid workers, Pacific Red Cross National Society development, and international aid development programmes. During the year we were able to spend $7.1 million on these activities which maintained spending at the 2009 level.

Sadly we called on the New Zealand public to respond to disasters in Samoa in September, and Haiti in January as well as earthquakes in China, Chile and Indonesia, and their response along with contributions from the New Zealand Government, provided $8.7 million in support of international appeals.

statement of financial Position

Accumulated funds at 30 June 2010 were $50.2 million after consolidating Foundation funds, an increase of $2.9 million over the previous year. The total funds including restricted funds and the asset revaluation reserve, were $62.3 million, an increase of $1.6 million over the previous year.

Our investments of $21.8 million ($35.8 million after consolidating Foundation investments) are invested in accordance with an approved “Statement of Investment Policy and Objectives”, which established investment portfolio objectives and target asset allocations. Investment returns form part of the income available for our humanitarian activity.

Ian McEwan Chief Financial Officer

New Zealand Red Cross Consolidated

New Zealand Red Cross Excluding Foundation

Note 2010 2009 2010 2009 $’000 $’000 $’000 $’000

tRading activities 2

Income from trading activities 10,064 8,636 10,064 8,636

Expenditure on trading activities 7,397 6,106 7,397 6,106

surplus from trading activities 2,667 2,530 2,667 2,530

administRation activities 2

Income from administration activities 2,444 2,898 2,372 2,590

Expenditure on administration activities 5,242 5,044 5,147 4,936

deficit from administration activities (2,798) (2,146) (2,775) (2,346)

(deficit)/surplus before Revenue generation (131) 384 (108) 184

Revenue geneRation activities 3

Income from revenue generation activities 19,818 16,063 19,694 16,403

Expenditure on revenue generation activities 2,958 3,023 2,958 3,023

surplus from Revenue generation activities 16,860 13,040 16,736 13,380

surplus available for core activities 16,729 13,424 16,628 13,564

coRe activities 4

Expenditure on core activities 15,506 13,230 15,506 13,230

surplus after core activities 1,223 194 1,122 334

Net (loss) on sale of assets (20) (10) (20) (10)

Capital gain on sale of buildings 235 - 235 -

Changes in fair value through profit or loss for investments 1,486 (3,689) - -

total suRPlus/(deficit) foR the yeaR 2,924 (3,505) 1,337 324


Statement of Comprehensive IncomeFOR THE YEAR ENDED 30 JUNE 2010

Statement of Changes in EquityFOR THE YEAR ENDED 30 JUNE 2010

New Zealand Red CrossConsolidated

New Zealand Red CrossExcluding Foundation

2010 2009 2010 2009$’000 $’000 $’000 $’000

total suRPlus/(deficit) foR the yeaR 2,924 (3,505) 1,337 324

other comprehensive income

Revaluation of land and buildings (1,000) - (1,000) -

other comprehensive income for the year (1,000) - (1,000) -

total comPRehensive income foR the yeaR 1,924 (3,505) 337 324

new zealand Red cRoss consolidated

Accumulated Funds

Restricted funds

Asset Revaluation

Reserve

Total funds

$’000 $’000 $’000 $’000

opening funds 1 july 2008 50,939 2,033 11,244 64,216

Total comprehensive income for the year (3,505) - - (3,505)

Transfer to restricted funds (150) 150 - -

closing funds 30 june 2009 47,284 2,183 11,244 60,711


Total comprehensive income for the year 2,924 - (1,000) 1,924

Transfer to total surplus/(deficit) on sale of building - - (307) (307)


new zealand Red cRoss excluding foundation

Accumulated Funds

Restricted funds

Asset Revaluation

Reserve

Total funds

$’000 $’000 $’000 $’000


Total comprehensive income for the year 324 - - 324

Transfer to restricted funds (150) 150 - -



Total comprehensive income for the year 1,337 - (1,000) 337

Transfer to total surplus/(deficit) on sale of building - - (307) (307)



Statement of Financial PositionAS AT 30 JUNE 2010



Note 2010 2009 2010 2009$’000 $’000 $’000 $’000

funds

Accumulated funds 50,208 47,284 33,166 31,829

Restricted funds 11 2,183 2,183 2,183 2,183

Asset revaluation reserve 9,937 11,244 9,937 11,244

total funds 62,328 60,711 45,286 45,256

RePResented By:

cuRRent assets

Cash and cash equivalents 9,107 4,700 5,811 1,916

Receivables 12 1,222 1,228 1,416 1,392

Inventory 543 415 543 415

Investments – current 15 4,034 5,384 129 95

total current assets 14,906 11,727 7,899 3,818

cuRRent liaBilities

Payables 13 1,381 990 1,360 973

Provisions for employee entitlements 14 521 824 521 824

Provision for Samoa tsunami recovery project 3,640 - 3,640 -

Grants received in advance 273 262 273 262

Special appeals 9 861 1,088 861 1,088

total current liabilities 6,676 3,164 6,655 3,147

net cuRRent assets 8,230 8,563 1,244 671

non cuRRent assets

Investments – non current 15 31,751 28,636 21,695 21,073

Property, plant and equipment 5 21,600 23,461 21,600 23,461

Intangible assets (software) 6 771 75 771 75

total non current assets 54,122 52,172 44,066 44,609

non cuRRent liaBilities

Licences to occupy 16 24 24 24 24

total non current liabilities 24 24 24 24

net assets 62,328 60,711 45,286 45,256

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

Penny mason john waReNational President Chief Executive

Statement of Cash FlowsFOR THE YEAR ENDED 30 JUNE 2010



2010 2009 2010 2009$’000 $’000 $’000 $’000

cash flows fRom oPeRating activities

Cash was provided from:

Trading activities 10,259 8,318 10,259 8,318

Administration activities 122 223 872 973

Revenue generation activities 20,028 16,356 19,871 16,671

Interest income 1,605 2,322 1,401 1,593

Dividend income 380 413 - -

32,394 27,632 32,403 27,555

Cash was applied to:

Trading activities (7,557) (5,833) (7,557) (5,833)

Administration activities (4,681) (4,509) (4,591) (4,401)

Revenue generation activities (3,021) (3,201) (3,021) (3,201)

Core activities (11,919) (13,740) (11,919) (13,740)

(27,178) (27,283) (27,088) (27,175)

net cash inflow from operating activities 5,216 349 5,315 380

cash flows fRom investing activities

Cash was provided from:

Sale of investments 4,005 6,779 1,411 1,874

Sale of property, plant and equipment 807 35 807 35

4,812 6,814 2,218 1,909

Cash was applied to:

Purchase of investments (4,050) (8,984) (2,067) (942)

Purchase of property, plant and equipment (1,571) (1,569) (1,571) (1,569)

(5,621) (10,553) (3,638) (2,511)

net cash (outflow) from investing activities (809) (3,739) (1,420) (602)

net increase/(decrease) in cash held 4,407 (3,390) 3,895 (222)




2010 2009 2010 2009$’000 $’000 $’000 $’000

Net increase/(decrease) in cash held 4,407 (3,390) 3,895 (222)

Add opening cash brought forward 4,700 8,090 1,916 2,138

ending cash carried forward 9,107 4,700 5,811 1,916

This is represented by:

Cash and cash equivalents 9,107 4,700 5,811 1,916

ending cash carried forward 9,107 4,700 5,811 1,916

Reconciliation of oPeRating cash flow with total comPRehensive income

Reported total comprehensive income 1,924 (3,505) 337 324

add non cash items

Depreciation on property, plant and equipment 787 848 787 848

Amortisation (software) 69 40 69 40

Revaluation of land and buildings 1,000 - 1,000 -

1,856 888 1,856 888

add/(less) movements in working capital items

Increase/(decrease) in accounts payable 93 49 83 (3)

Increase in grants in advance 11 87 11 87

Increase/(decrease) in special appeals 3,413 (837) 3,413 (837)

(Increase) in accounts receivable (44) (164) (24) (72)

(Increase) in inventories (128) (104) (128) (104)

3,345 (969) 3,355 (929)

add/(less) items classified as investing activities

Net Loss on sale of property, plant and equipment 20 10 20 10

Capital gain on sale of buildings (235) - (235) -

(Decrease)/increase in accounts payable – property, plant and equipment (18) 87 (18) 87

Net surplus on sale of investments - 135 - -

Changes in fair value through profit or loss for investments (1,676) 3,703 - -

(1,909) 3,935 (233) 97

net cash inflow from operating activities 5,216 349 5,315 380

Statement of Cash FlowsFOR THE YEAR ENDED 30 JUNE 2010

Notes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2010

1. summaRy of accounting Policies

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

Red Cross is part of the largest humanitarian organisation in the world, helping people wherever they might be – internationally or in our own communities.

The mission of New Zealand Red Cross is to improve the lives of vulnerable people by mobilising the power of humanity and enhancing community resilience.

Our fundamental principles are:

• humanity

• impartiality

• neutrality

• independence

• voluntary service

• unity

• universality

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

statement of compliance

New Zealand Red Cross Incorporated is a society incorporated under the Incorporated Societies Act 1908. New Zealand Red Cross Foundation is a charitable trust registered under the Charitable Trusts Act 1957. both Red Cross and the Foundation are registered as charities under the Charities Act 2005. The registration number for Red Cross is CC21860 while that for the Foundation is CC22820. Red Cross is deemed a Public benefit Entity.

The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (“NZ GAAP”). They comply with the New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”) and other applicable financial reporting standards as appropriate for public benefit entities that qualify for and apply differential reporting concessions permissible under the NZ IFRS framework.

The financial statements were authorised for issue by the National board of Red Cross on 18 September 2010.

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.

The functional currency and presentation currency is New Zealand Dollars (“NZD”), and the amounts presented in the financial statements are rounded to the nearest thousand (000’s).

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

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

Red Cross and the Foundation qualify for differential reporting under the framework for differential reporting issued by the New Zealand Institute of Chartered Accountants as Red Cross and the Foundation have no public accountability and no separate owners or governing body.

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

standard and interpretations effective in the current Period

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

significant judgements, estimates, and assumptions

The preparation of financial statements requires the use of accounting estimates and management to exercise their judgement in applying accounting policies. Estimates and assumptions are based on experience and other factors appropriate to the circumstances. Actual results may differ from the judgements, estimates, and assumptions.

The key judgements, estimates and assumptions made in the process of applying Red Cross’ accounting policies in these financial statements are:

(a) Judgement is used in determining if a commitment has been made by the National board to fund a specific project and therefore to record a provision in the Statement of Financial Position,

(b) The fair values of land and buildings are subject to judgement as the fair values are determined by an independent valuer using assumptions and valuation methods.


(c) There are 100 branches of Red Cross (2009: 106). branches with turnover greater than $50,000 are audited by Deloitte as part of the annual audit engagement. branches with turnover of between $20,000 and $50,000 are reviewed by Deloitte on a cyclical basis (approximately every 3 years) and a sample of branches with turnover less than $20,000 are reviewed internally. However at the date of signing the 30 June 2010 Red Cross consolidated financial statements, not all the branches had submitted their annual returns and there is some estimation of the financial results for these branches in the consolidated financial statements.

significant accounting Policies

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

(a) Basis of consolidation

The consolidated financial statements are prepared by combining the financial statements of Red Cross and the Foundation. Consistent accounting policies are employed in the preparation and presentation of the consolidated financial statements. In preparing the consolidated financial statements, all intra-group balances and transactions, and any unrealised profits arising within these transactions, are eliminated in full.

(b) Comparative amounts

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

(c) Employeebenefits

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

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

(d) Funds

Funds comprise Accumulated Funds, unspent funds held for specific purposes termed Restricted Funds (as detailed in Note 11), and the Asset Revaluation Reserve comprising balances built up through the upward revaluation of property.

(e) Financial instruments

Financial Instruments

Financial instruments include financial assets (cash, receivables and investments) and financial liabilities (payables, grants received in advance and special appeals). Red Cross does not have any derivative financial instruments.

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

Financial assets

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

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.

Investmentfinancialassetsatfairvaluethroughprofitorloss

Investment financial assets are designated upon initial recognition to be fair value through profit or loss as these investments are managed and their performance is evaluated on a fair value basis in accordance with the Statement of Investment Policy and Objectives.

Loans and receivables

Receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at amortised cost, using the effective interest method less any impairment.

Financial liabilities

All financial liabilities are initially measured at fair value, net of transaction costs and then at amortised cost.

(f) Foreign currency

All foreign currency transactions during the year are brought to account using the exchange rate in effect at the date of the transaction. Foreign currency monetary items at reporting date are translated at the exchange rate existing at reporting date. Exchange differences are recognised in the Statement of Comprehensive Income in the period in which they arise.

(g) Goods & Services Tax

New Zealand Red Cross Incorporated

All balances are presented net of goods and services tax (GST), except for receivables and payables which are presented inclusive of GST.

New Zealand Red Cross Foundation

The Foundation is not registered for GST and consequently all of its balances are stated inclusive of GST where appropriate.

(h) Impairment of Assets

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

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

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

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased

carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised in the Statement of Comprehensive Income immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.

(i) Income Tax

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

(j) Intangible Assets

Software

Computer software is a finite life intangible asset and is recorded at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged on a straight line basis over the estimated useful life of 3 years.

(k) Inventories

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

(l) Leased Assets

All leases at Red Cross are classified as operating leases.

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

(m) Payables

Trade payables and other accounts payable are recognised when Red Cross becomes obliged to make future payments resulting from the purchase of goods and services.

(n) Property, Plant & Equipment

Land and buildings are measured at fair value. Fair value is determined on the basis of independent valuations prepared by independent registered valuers. Recent acquisitions and improvements are carried at cost less depreciation. The fair values are recognised in the consolidated financial statements and are reviewed by the National board at the end of each reporting period to ensure that the carrying value of land and buildings is not materially different from their fair values.

Any revaluation increase arising on the revaluation of land and buildings is credited to the asset revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense in the Statement of Comprehensive Income, in which case the increase is credited to the Statement of Comprehensive Income to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of land and buildings is charged as an expense in the Statement of Comprehensive Income to the extent that it exceeds the balance, if any, held in the asset revaluation reserve relating to a previous revaluation of that class of asset.

The legal title to all land and buildings is in the name of New Zealand Red Cross Incorporated.

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

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

Asset Class Annual Depreciation Rate

buildings 2.0%Computer Hardware 33.3%Equipment 20.0%Furniture and Fittings 10.0%Motor vehicles 10.0% to 20.0%

(o) Revenue Recognition

Sale of Goods

Revenue from the sale of goods is recognised when Red Cross has transferred to the buyer the significant risks and rewards of ownership of the goods.

First Aid Training

First aid training courses completed during the year are recognised as income with reference to the percentage of completion method. Cash received in advance for courses completed after 30 June is carried forward as a liability at 30 June.

Dividend & Interest Income

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

Donations

Public donations are recognised on a cash basis. Refer (t) for policy relating to special appeals.

(p) Funds

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

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

(q) Contributions in Kind – Volunteers, Members, and Organisations

Red Cross has benefited from significant donations of services and goods by volunteers, members and by organisations. While these donations in kind are difficult to measure, they are a major contribution to Red Cross operations. No reliable figures are available and they are not recognised in the financial statements.

(r) Grants

Grants received are not recognised in the Statement of Comprehensive Income until the requirements of the grant agreement have been met. Grants received for which the requirements have not been met at balance date are shown as Grants received in advance under Current Liabilities. Government grants relating to income are recognised as income over the periods necessary to match them with the related services when performed.

(s) Legacies

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


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

(t) Special Appeals

Donations received from the public for International Red Cross Appeals are transferred in full to the International Appeal Fund in Geneva or to the relevant Red Cross National Society.

Those donations which have not been transferred at balance date are recorded as Special Appeals in the Statement of Financial Position except to the extent the board has identified a constructive obligation to transfer the funds in which case a provision is recognised. Refer note (x).

(u) Expenses

Expenses are recognised on an accruals basis.

(v) Licences to Occupy

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

(w) Statement of Cash Flows

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

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

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

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

(x) Provisions

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

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

Provisions for Projects

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

2. tRading & administRation activities – analysis, consolidated

First Aid Training

Red Cross Shops

Administration

2010 2009$’000 $’000 $’000 $’000 $’000

income

Training fees 5,735 - - 5,735 5,837 Trading sales 397 - - 397 467 Public donations 1 3,909 37 3,947 2,349 Rents - - 217 217 249 Interest - - 1,620 1,620 2,192 Dividends - - 380 380 408 Net gain/(loss) on sale of investments - - 190 190 (14)Other income - 22 - 22 46 total income 6,133 3,931 2,444 12,508 11,534

expenditurePersonnel costs 3,071 620 2,224 5,915 5,609 Trading purchases 271 694 - 965 648 Property costs 252 796 626 1,674 1,412 Supplies, materials and other* 1,188 380 1,872 3,440 2,744 Depreciation 57 68 394 519 639 Amortisation (software) - - 69 69 40 Audit fees - - 57 57 58 total expenditure 4,839 2,558 5,242 12,639 11,150

net surplus (deficit) 1,294 1,373 (2,798) (131) 384

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

tRading & administRation activities – analysis, excluding foundation

First Aid Training

Red Cross Shops

Administration

2010 2009$’000 $’000 $’000 $’000 $’000

income

Training fees 5,735 - - 5,735 5,837 Trading sales 397 - - 397 467 New Zealand Red Cross Foundation grant - - 750 750 750 Public donations 1 3,909 4 3,914 2,349 Rents - - 217 217 249 Interest - - 1,401 1,401 1,527 Other income - 22 - 22 47 total income 6,133 3,931 2,372 12,436 11,226

expenditurePersonnel costs 3,071 620 2,144 5,835 5,530 Trading purchases 271 694 - 965 648 Property costs 252 796 626 1,674 1,412 Supplies, materials and other* 1,188 380 1,869 3,437 2,727 Depreciation 57 68 394 519 639 Amortisation (software) - - 69 69 40 Audit fees - - 45 45 46 total expenditure 4,839 2,558 5,147 12,544 11,042

net surplus (deficit) 1,294 1,373 (2,775) (108) 184

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


3. Revenue geneRation activities – analysis, consolidated and excluding foundation



Note 2010 2009 2010 2009$’000 $’000 $’000 $’000

income

Public donations: – Project partners 4,649 3,944 4,649 3,944 – Annual appeal 429 474 429 474 – Direct mail 1,089 649 1,089 649 – Lottery 243 226 244 226 – Other 1,340 1,538 1,340 1,538 International (special) appeals – Public 5,652 3,314 5,652 3,314 – New Zealand Government 8 3,003 3,076 3,003 3,076 – Interest 34 38 34 38 Less: unexpended special appeal income carried forward (286) (425) (286) (425)New Zealand Government (excluding special appeals) 1,000 1,000 1,000 1,000 New Zealand Red Cross Foundation grant - - - 500 Contracts 941 1,070 941 1,070 Unspent Indonesia fund recovery - 148 - 148 Legacies 1,719 1,002 1,595 842 Other 5 9 4 9 total income 19,818 16,063 19,694 16,403

expenditure (direct costs)Personnel costs 606 589 606 589 Other fundraising costs 2,352 2,434 2,352 2,434 total expenditure 2,958 3,023 2,958 3,023

net surplus 16,860 13,040 16,736 13,380

4. coRe activities – analysis, consolidated and excluding foundation

International Humanitarian

Law

Disaster Relief &

Development

EmergencyManagement

CommunityActivities

Note 2010 2009$’000 $’000 $’000 $’000 $’000 $’000

expenditure

Personnel costs – New Zealand - 384 3 1,419 1,806 1,416 Aid workers - 1,147 - - 1,147 1,113 Grant disbursements 7 - 1,485 - - 1,485 1,581 International appeals - 8,402 - - 8,402 6,046 International levies - 275 - - 275 336 International projects – other - 1 - - 1 141 Supplies, materials & other 2 914 236 970 2,122 2,387 Depreciation - 129 108 31 268 210 total core expenditure 2 12,737 347 2,420 15,506 13,230

5. PRoPeRty, Plant and equiPment – analysis, consolidated and excluding foundation

Cost or Valuation

Accumulated Depreciation

Net Book Value

Annual Depreciation

Charge

$’000 $’000 $’000 $’0002010

Land and buildings 19,655 643 19,012 154Equipment 2,200 1,657 543 214Computer hardware 1,283 1,142 141 76Furniture and fittings 1,678 779 899 98Motor vehicles 2,570 1,565 1,005 245net Book value, 30 june 27,386 5,786 21,600 787

2009

Land and buildings 21,309 511 20,798 225Equipment 2,088 1,433 655 226Computer hardware 1,575 1,067 508 63Furniture and fittings 1,330 671 659 83Motor vehicles 2,158 1,317 841 251net Book value, 30 june 28,460 4,999 23,461 848

summary 2010 2009

Net book value, 1 July 23,461 22,937 Additions 825 1,465 (Disposals) (899) (93)Revaluation increases/(decreases) (1,000) - (Depreciation) (787) (848)net Book value, 30 june 21,600 23,461

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

6. intangiBle assets, softwaRe – analysis, consolidated and excluding foundation

Cost Accumulated Amortisation

Net Book Value

Annual Amortisation

Charge

$’000 $’000 $’000 $’0002010Computer software 1,115 344 771 69

2009Computer software 350 275 75 40

summary 2010 2009

Net book value, 1 July 75 49 Additions 765 66 (Amortisation) (69) (40)net Book value, 30 june 771 75


7. gRants disBuRsements – analysis, consolidated and excluding foundation

2010 2009$’000 $’000

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

the international federation of Red cross & Red crescent societies:

Afghanistan – health improvement programmes - 100 Cambodia -– dengue fever eradication programme 200 200 Disaster relief supplies 171 - Timor-Leste – first aid programme 202 150 Pacific first aid trainers’ programme 13 4 vietnam – health care 65 50 the international committee of the Red cross

South East Asia – mine action - 50 Cambodia – centre for disabled - 100 Pacific national Red cross societies – Programme support

Pacific telecommunications project 330 297 Cook Islands Red Cross Society – branch development, land lease & other 153 80 Fiji Red Cross Society – HIv/Aids awareness/peer education programmes 60 100 kiribati Red Cross Society – branch development 10 18 Samoa Red Cross Society – first aid programme 38 53 Tonga Red Cross Society – branch development, blood programme 38 60 Solomon Islands Red Cross – first aid programme 8 3 vanuatu Red Cross Society – first aid programme & support 30 50 Tuvalu Red Cross Society – programme support 52 18 Sub regional workshop 68 158 Other Pacific Red Cross National Society support 47 90 total disbursements 1,485 1,581

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

8. goveRnment gRants foR disasteR Relief, consolidated and excluding foundation

2010 $’000

Pacific disaster preparedness 6 Fiji floods and tropical cyclone 21 Chile earthquake 500 vietnam floods 500 Haiti 400 Phillipines 500 Guatemala 300 Indonesia earthquake 270 China earthquake 400 South East Asia floods 100 Tonga 6 total grants for 2010 3,003

2009 $’000

Australia bush fires 500 Fiji floods 94 Disaster relief emergency fund – International Federation of Red Cross and Red Crescent Societies 500 Papua New Guinea floods 150 Solomon Islands flood 55 Sri Lanka tsunami emergency fund 577 Zimbabwe food insecurity 1,200 total grants for 2009 3,076

9. unexPended sPecial aPPeal funds – analysis, consolidated and excluding foundation

SE Asia Tsunami

Other

2010 2009 $’000 $’000 $’000 $’000

opening balance 600 488 1,088 1,924

Donations received: – Public donations - 5,652 5,652 3,314 – New Zealand Govt – Other international (Note 8) - 3,003 3,003 3,076 Interest earned on funds invested 28 6 34 38

628 9,149 9,777 8,352

less

Humanitarian aid worker costs 306 - 306 938 Transfer to Australian Red Cross (bush fires) - - - 3,320 Transfer to International Federation of Red Cross and Red Crescent Societies - 4,850 4,850 2,750

Transfer to provision for Samoa tsunami recovery project - 3,640 3,640 -Transfer to International Committee of Red Cross - 59 59 - Transfer to Fiji Red Cross Society (Fiji floods) - 60 60 106 Transfer to Papua New Guinea Red Cross (PNG floods) - - - 150

307 8,609 8,916 7,264

unexpended special appeal funds carried forward 321 540 861 1,088

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


10. caPital commitments

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



2010 2009 2010 2009 $’000 $’000 $’000 $’000

11. RestRicted funds

new zealand Red cross has the following restricted funds:

International appeals and development 199 199 199 199 Local projects and developments 23 23 23 23 Meals on Wheels activities 64 64 64 64 Emergency response units/vehicles 68 68 68 68 Purchase and maintenance of properties 1 1 1 1 Specific purpose legacies 1,737 1,737 1,737 1,737 International humanitarian law conference 91 91 91 91 total Restricted funds 2,183 2,183 2,183 2,183

12. ReceivaBles

Trade 704 1,011 704 1,011 Foundation – accrued interest and sale proceeds 35 141 - - Other 483 76 712 381 total Receivables 1,222 1,228 1,416 1,392

13. PayaBles

Trade 952 644 952 627 Accruals 429 346 408 346 total Payables 1,381 990 1,360 973

14. emPloyee entitlements

Holiday 424 357 424 357 Payroll and other 97 467 97 467 total employee entitlements 521 824 521 824

16. licences to occuPy

Licences to occupy at 1 July 24 24 24 24Less: Repayments - - - -licences to occupy at 30 june 24 24 24 24

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

17. contingent liaBilities

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

18. significant events afteR Balance date

A 7.1 magnitude earthquake struck Canterbury on Saturday 4 September 2010. In response to the earthquake Red Cross launched the New Zealand Red Cross Canterbury Earthquake Appeal (the Appeal).

At the time the financial statements were authorised no reliable estimate of the amount of funds the Appeal will generate was available.

19. Related PaRty tRansactions

Red Cross pays annual levies to the International Committee of the Red Cross “ICRC” and the International Federation of Red Cross and Red Crescent Societies “IFRC”. Levies in respect of year ended 30 June 2010 were $275,000 (2009: $336,000).

All donations received by Red Cross for international work and special appeals overseas are sent to the ICRC or the IFRC. Due to the long term implication of tsunami relief work, unexpended money is being held with the Foundation for funding of humanitarian aid workers in tsunami affected countries.



2010 2009 2010 2009$’000 $’000 $’000 $’000

15. investmentsHeld for tsunami appeal 322 600 322 600Held for branches/regions/national office/the Foundation 35,463 33,420 21,502 20,568 total investments 35,785 34,020 21,824 21,168

consists of:

Investment with the Foundation - - 21,695 21,073 Short term fixed interest 3,905 5,289 - -

Long term fixed interest 20,940 20,710 - -

Long term deposits 505 - - -

Public company shares 10,306 7,926 - -

Other 129 95 129 95

total investments 35,785 34,020 21,824 21,168

investments categorised as:

Current 4,034 5,384 129 95

Non-current 31,751 28,636 21,695 21,073

total investments 35,785 34,020 21,824 21,168

20. management RemuneRation

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

21. financial instRuments

significant accounting Policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition and the basis of measurement applied in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.

capital Risk management

Red Cross manages its capital to ensure that it will be able to continue as a going concern while maximising the return to the Foundation and preserving the capital value of the assets. The capital structure of Red Cross consists of cash and accumulated funds as disclosed in the Statement of Changes in Equity.

The Trustees of the Foundation have approved a SIPO (Statement of Investment Policy and Objectives) which establishes investment portfolio objectives and target asset allocations. Performance against these targets is reviewed quarterly by the Trustees and asset reallocations undertaken as required.


21. financial instRuments categories of financial assets and financial liabilities, consolidated

Financial Assets at Fair

Value through ProfitorLoss

Loans and Receivables

Financial Liabilities at Amortised

Cost

Non Financial Assets and

Liabilities

Total Carrying Amount

2010 $’000 $’000 $’000 $’000 $’000

assetsCash and cash equivalents 9,107 - - - 9,107 Trade receivables - 1,222 - - 1,222 Investments 35,785 - - 35,785 total financial assets 44,892 1,222 - - 46,114

Non-financial assets - - - 22,914 22,914 total assets 44,892 1,222 - 22,914 69,028

liabilitiesTrade and other payables - - (6,155) - (6,155)total financial liabilities - - (6,155) - (6,155)

Non-financial liabilities - - - (545) (545)total liabilities - - (6,155) (545) (6,700)





Cost


Liabilities


2009 $’000 $’000 $’000 $’000 $’000

assets

Cash and cash equivalents 4,700 - - - 4,700

Trade receivables - 1,228 - - 1,228

Investments 34,020 - - - 34,020

total financial assets 38,720 1,228 - - 39,948

Non-financial assets - - - 23,951 23,951

total assets 38,720 1,228 - 23,951 63,899

liabilities

Trade and other payables - - (2,340) - (2,340)

total financial liabilities - - (2,340) - (2,340)

Non-financial liabilities - - - (848) (848)

total liabilities - - (2,340) (848) (3,188)

21. financial instRuments categories of financial assets and financial liabilities, excluding foundation





Cost


Liabilities


2010 $’000 $’000 $’000 $’000 $’000

assetsCash and cash equivalents 5,811 - - - 5,811 Trade receivables - 1,416 - - 1,416 Investments 21,824 - - - 21,824 total financial assets 27,635 1,416 - - 29,051








Cost

Non Financial Assets and Liab ilities


2009 $’000 $’000 $’000 $’000 $’000

assetsCash and cash equivalents 1,916 - - - 1,916 Trade receivables - 1,392 - - 1,392 Investments 21,168 - - - 21,168 total financial assets 23,084 1,392 - - 24,476





22. Revenue



2010 2009 2010 2009$’000 $’000 $’000 $’000

Trading activities 10,064 8,636 10,064 8,636Administration 2,444 2,898 2,372 2,590Revenue generation 19,818 16,063 19,694 16,403total Revenue 32,326 27,597 32,130 27,629

trading and administration

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

Revenue generation

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

AUDITORS REPORT

audit RePoRt

to the memBeRs of the new zealand Red cRoss incoRPoRated

We have audited the financial statements on pages 35 to 54. The financial statements provide information about the past financial performance of the New Zealand Red Cross Incorporated, which includes the New Zealand Red Cross Foundation Incorporated (together hereinafter referred to as the “Red Cross”) and its financial position as at 30 June 2010. This information is stated in accordance with the accounting policies set out on pages 41 to 44.

This report is provided solely for your exclusive use and solely for the purpose of expressing an opinion on the financial statements for the year ended 30 June 2010. Our report is not to be used for any other purpose, recited or referred to in any document, copied or made available (in whole or in part) to any other person without our prior written expressed consent. We accept or assume no duty, responsibility or liability to any other party in connection with the report or this engagement, including without limitation, liability for negligence.

national Board’s Responsibilities

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

auditor’s Responsibilities

It is our responsibility to express to you an independent opinion on the financial statements presented by the National board.

Basis of opinion

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

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

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

We conducted our audit in accordance with New Zealand Auditing Standards. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to obtain reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Other than in our capacity as auditor and the provision of taxation services concerning fridge benefit tax, we have no relationship with or interests in the Red Cross.

qualified opinion

In common with other organisations of a similar nature, control over revenues from cash donations prior to being recorded is limited, and there are no practical audit procedures to determine the effect of this limited control. Our work has been confined to testing receipts once recorded. In all other respects we have obtained all the information and explanations that we have required.

In our opinion, except for adjustments that might have been found to be necessary had we been able to obtain sufficient evidence concerning cash donations, the financial statements on pages 35 to 54 fairly reflect the financial position of the Red Cross as at 30 June 2010 and the results of its operations and cash flows for the year then ended.

Our audit was completed on 18 September 2010 and our qualified opinion is expressed as at that date.

CHARTERED ACCOUNTANTS, WELLINGTON, NEW ZEALAND


DIRECTORY

New Zealand Red Cross is part of the world’s largest humanitarian network. It is an independent humanitarian organisation, founded in 1863, and based on the Fundamental Principles of the International Red Cross and Red Cresent 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 2010

Patron

His Excellency the Honourable Anand Satyanand GNZM, QSO, Governor General of New Zealand

national BoaRd

national President Penny Mason

national vice-President John Evans

national treasurer Dame Margaret Millard, DNZM, JP

chief executive John Warenational Board members

Allison Craw, Chair, Canterbury West Coast RegionPaul Hawke, Chair, East West Regionbrie Jessen, youth RepresentativeRalph La Salle, Chair, Southern RegionIan McPherson, Chair, Northern RegionPaul Steere, Chair, Central RegionAlan Webb, Chair, Midland Region

counselloRs of honouR

Terry buttJoan Cockburn, CbE, JPNancy CookPat Gribble, QSM, JPLynette Jones, CNZMJocelyn, Lady keith, CbERt Hon Justice Sir kenneth keith, ONZ, kbEDr Ron Mackenzie, QSOGerald McDouall, ObE, JPkerry NolanPatricia O’brien, QSOJane SmithSydney SmithJohn StevensJerry TalbotPaul WatsonJohn Wilson, QSORev Gavin yatesPeter young

officials

international humanitarian law consultant

Rt Hon Justice Sir kenneth keith, ONZ, kbE

new zealand Red cRoss foundation

trustees

Euan Abernethy (Chair) Christopher batten (Executive Trustee)Peter AllportFalcon CloustonSteven Gentry Alan Isaac Dame Margaret Millard, DNZM, JP belinda StanleyPaul SteereMark Weaver

management

Chief Executive, John WareNational Fundraising Manager, Clare Cain National Retail Manager, Patrick CummingsChief Financial Officer, Ian McEwanInternational Programmes Manager, Andrew Mckie National Programmes Manager, David Neal Human Resources Manager, Wendy PotterMarketing and Communications Manager, Paul ScoringeNational Education and Training Manager, Graham Wrigley

Regional managers

Northern and Midland Regions, Patrick CummingsEast West and Central Regions, David NealCanterbury West Coast and Southern Regions, Graham Wrigley

Bank

ASb bank Limited

legal adviseR

burrowes and Company

auditoR

Deloitte

national office

Red Cross House, 69 Molesworth StreetP O box 12 140, Thorndon, Wellington 6144, New Zealand.Ph. 64 4 471 8250Fax. 64 4 471 8251Website: www.redcross.org.nzE-mail: [email protected]

Cover photo, International Federation / Rob Few. Inside front cover, ICRC / ben Milpas. Page 6, Antony kitchener. Pages 10 and 11, left, Antony kitchener, right, International Federation / Rob Few. Pages 12 and 13, left, ICRC / P yazdi, centre bottom, ICRC / F Clarke, right, ICRC / k Chimroylarp. Pages 14 and 15, International Federation / Giora Dan. Pages 16 and 17, left, International Federation / Jakob Dall, top right, Trang.

Pages 18 and 19, clockwise from top, ICRC, International Federation / Jakob Dall, International Federation, International Federation / Rob Few, International Federation, American Red Cross / Daniel Cima. Page 25, top, Antony kitchener. Page 31, bottom left, Leilani Hatch / Manawatu Standard. back cover International Federation / Jakob Dall.

GET INVOLVED

do something diffeRent in youR fRee time

volunteers are the lifeblood of New Zealand Red Cross. Could you be one of them?

Our 20,000 volunteers are involved in a variety of community programmes or serve on emergency management teams.

take PaRt

New Zealand Red Cross’ transformation of governance and leadership has opened more paths for people to become involved in their own areas or nationally as members, and in governance or leadership.

suPPoRt oR oRganise a fundRaising event

From organising your own event, selling lottery tickets or taking part in our annual street appeals, there are tons of ways to fundraise.

join ouR online community

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

PRePaRe foR disasteR

book a course to improve your first aid or emergency management skills.

coRPoRate suPPoRt

A partnership with an organisation as trusted and respected as Red Cross tells others a great deal about your business and its values. Our corporate partnerships team has the skills, expertise and experience to develop a tailor-made partnership that will not only deliver on your business objectives but will help save lives too.

donate

Regular gifts or payroll giving from thousands of Red Cross supporters is essential for rapid response, and means we can reach people with vital aid when they need it most. Other ways to support Red Cross work are by donating money or services.

find out moRe

Online at www.redcross.org.nzby phoning 0800 RED CROSS (0800 733 276)Or by visiting one of our service centres across New Zealand

Whether you have ten minutes, ten months or $10,000, there are hundreds of ways for you to get involved with our work. you could volunteer in a shop, learn to save a life, help young refugees adjust to a new life or take part in a fundraising challenge – whatever takes your fancy.

This document is printed on Advance Laser, an environmentally responsible paper produced using ECF pulp sourced from Sustainable & Legally Harvested Farmed Trees. Advance Laser is manufactured under the strict ISO14001 Environmental System.

119 Rec Ar v13 - Final

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red crescent movement

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power of humanity

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