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From Pakistan toNew Zealand and aroundthe world, technology hasenabled New ZealandRed Cross to connect,to reach more, do betterand be there to help thosewho need us most.

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91,905volunteer

hours

7,747volunteerdrivers

34volunteer

coordinators

646,918meals

delivered

MEALS ON WHEELS

9,210volunteers

5,369members

SUPPORTERS

5,429volunteer

hours

620days ofservice 133volunteers

HOSPITALSERVICES

832courses

delivered19,878

participants

PEOPLESAVERS

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64,859participants

2.84%national

growth rate

FIRST AID

1,200retail

volunteers

98%volunteerworkforce

51shops

RETAIL

SHOPS

3,564participants

196coursesdelivered

SAVE-A-MATE

135new Twitterfollowersper month

170new

Facebookfollowersper month

578likes

Feb–Jun2012

25,000monthlywebsite

visits

DIGITALCONNECTIONS

13,269patients

transported

709drivers/

volunteers

21,716volunteer

hours

COMMUNITYTRANSPORT

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4

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

Every dollar spent at a Red Cross shop goes back into supporting Red Cross’

work with vulnerable people in communities, and with a strong network

of 51 Red Cross shops the impact makes a difference every day.

Half of the 13 million Red Cross Red Crescent volunteers worldwide are

young people, and so youth play a critical role in helping Red Cross reach

the most vulnerable, while also helping to build healthy communities.

The challenge was launched at Red Cross’ newest shop in Matamata with two

students, one from Waikato University, the other from Wellington’s Massey

University, going head to head to find their own ‘gem’.

People had to head to their local Red Cross shop to find an outfit for under

$50 and post a photo to New Zealand Red Cross’ Facebook page, with

the most ‘likes’ winning.

Using the power of social media and New Zealand Red Cross’ Facebook

page, the pair put the challenge out to others to find a better bargain.

Within seconds the votes flooded in.

The challenge had 18,000 unique views on our Facebook page, more than

2,000 likes on the competition photos and 44 photo or album shares.

A YouTube promotional clip also attracted close to 100 views.

The winner, a Canterbury University law student received 805 ‘likes’ to take

out the top prize and walk away with a $400 Country Road gift card. On the

flip side, the new Red Cross shop made record sales in its opening week.

It was a different approach. It was a campaign that celebrated youth

and our retail stores, and that let social networks mobilise national interest,

prompting television, radio and print publications across the country to run

stories and get interest. It was a campaign that opened awareness

of New Zealand Red Cross, and what it can do, to a new generation.

IN THE WARDROBECHALLENGEENGAGING

New Zealand Red Cross challenged thecountry to visit a Red Cross shop to mark

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

$50+

New Zealand Red Cross Annual Report 2012

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5

unique Facebookpage views

Massey University student Olivia Cramondchallenges other students.

Watch Red Cross’call for entries

Facebook likesfor WardrobeChallenge photos

Facebook shares of WardrobeChallenge photos or albums

ENGAGING IN THE WARDROBE CHALLENGE

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6


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

Before the seasonal change, the winter warmer packs were being put together

by volunteers. Reminiscent of care packages Red Cross distributed during the

Second World War, these packs were created to support the most vulnerable

and offer some solace and a smile during another challenging time.

So when winter arrived, New Zealand Red Cross was ready. Mobilising its

living network of outreach volunteers and staff, 500 winter warmer packswere snapped up within days. Realising they were only just reaching the

tip of those in need, the New Zealand Red Cross Earthquake Commission

allocated funds from the appeal to produce another 4,000 packs.

A testament to the power of social networks was a message posted on

Facebook asking for all Christchurch residents struggling to stay warm this

winter, as a result of the earthquakes, to request a pack. With 103 likes,

56 comments and 79 shares the post helped New Zealand Red Cross reach

more, while a flow-on success saw 59 additional likes of New Zealand

Red Cross’ Facebook page.

“This is such a lovely thing the Red Cross is doing. Winter is being harsh

on us all,” said one recipient.

Another posted: “Thank you so much for our winter warmer pack.

Truly appreciate the generosity and thoughtfulness involved of all those

who supported this initiative.”

The reach and success of programmes like this could not be achieved so

quickly and at such a level without New Zealand Red Cross’ living network.

It is these people - members, volunteers and staff - that continually respond

to repair, restore and support those who need it most.

Red Cross acknowledges the significant tasks people face in rebuilding

their lives and livelihoods and remains committed to the long-term recovery

of the region. Every individual, family and community has different needs

and capacities and this has been recognised in the variety and breadth of

Red Cross’ recovery programmes.

A blanket, hotwater bottle, soup,torch radio, milo,beanie, snugglesack, gloves andthermos mug makeup the contentsof a New ZealandRed Cross winterwarmer pack.

A RECOVERINGCHRISTCHURCH

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

7

CHRISTCHURCH RECOVERY

winter warmer packsproduced for strugglingChristchurch residents

Facebook likes for the opportunityto receive winter warmer packs

earthquake-affected Kiwishave received Red Cross grants

set aside for earthquakerecovery programmes

Since the Earthquake Commission was established in February last year,

more than 80,000 of those affected have received grants, totalling about

$69 million, with a further $30 million ring-fenced for grants that are

currently open.

About $12 million has been put aside for recovery programmes, like

training outreach volunteers to provide care in the community, distributingwinter warmer packs and torch radios, supporting those displaced as a

result of the earthquake and strengthening disaster response capability.

The remainder of the appeal funds, about $14 million, is for further grants

and programmes under development.

Recovery is a marathon, not a sprint. New Zealand Red Cross may be new to

recovery, but through partnerships and learnings from other National Societies

around the world, and the power of living networks at home, our ability to be

relevant and useful during times of adversity is changing our landscape.

See Red Cross’

message forChristchurch

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8

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

This interconnectivity did not go un-noticed. The global network that had

mobilised the power to enhance our response was mentioned and praised

at the 31st International Conference of the Red Cross and Red Crescent

Movement in Geneva last Nov ember.

New Zealand Red Cross is also active in lending its support to other NationalSocieties in their development and with resources in their time of need.

This is especially relevant among the Pacific Islands, where we remain actively

involved. We support programme development, resilience and capacity building

as well as providing a governance enhancement programme.

That connection and support is also seen through an expanding living network

at home, in New Zealand.

Two years ago, New Zealand Red Cross changed its governance structure and

15 area councils replaced six regional boards. This transformed the membership

of the organisation. We are now starting to see the result of this change, with

our members giving us a closer link into local communities, and enhancing the

connection between governance, the organisation’s grass roots and staff.

Area councils are one of our most successful living networks, with a reach that is

far and wide. Members ensure we are able to deliver more services, and connect

with and support the most vulnerable in a more relevant way. On the flip side it

also increases Red Cross’ presence and profile within local communities.

Building a stronger National Society is contingent on robust and effective

governance and leadership. A strong National Society also requires an engaged,

committed and vibrant membership. As a strictly member-led organisation

through our constitution as a National Society, the members have a say in

the organisation and its direction and without them we would not exist.

Young people are also playing a crucial role in the work we are doing, adding

another dimension to our capability and reach. The number of youth members

within Red Cross is increasing as is their influence, with two representatives

sitting on our National Board.

From members to volunteers and staff, everyone plays an important role

in New Zealand Red Cross’ ability to reach further and do more. And the

planned improvements and developments in connectivity through technology

over the coming year will reduce the digital divide and increase collaboration

even further.

Being technologically savvy and transitioning the organisation into a more

innovative space through soc ial media, and a new website, and givin g

everyone access to a relevant intranet, will reduce the exclusion and

isolation historically felt by some of the most remotely located members.

Stronger networks between staff, members and volunteers will also develop

and New Zealand Red Cross will become more interconnected, and in a

better position to help change and shape our landscape as an essential

part of New Zealand and international communities.

Our most successful living networks are our people, who with our services

respond to, repair and restore communities in times of adversity.

Penny Mason

National President

“I would like to express my sincere thanksto members of the New Zealand Red Cross2011 Earthquake Commission, who took onthe daunting job of overseeing the distributionof the appeal funds. It is a difficult task thatrequires compassion and sound judgement.None of our work in Canterbury wouldhave been possible without your expertiseand commitment.”

NATIONAL PRESIDENT’S REPORT


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9

NATIONAL PRESIDENT’S REPORT

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

“The global network that had mobilised the power to enhance our

response was mentioned and praised at the 31st International Conference

of the Red Cross and Red Crescent Movement in Geneva last November.”

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10


CHIEF EXECUTIVE’S REPORT

Chief Executive John Ware in Wellington

“The demand for our work has steadily been increasing,

and New Zealand Red Cross has been there, and will remain

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

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11

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

Red Cross people, members, volunteers and staff have provided in the last

year humanitarian assistance in local communities in New Zealand and in

26 countries around the globe. I wish to thank all our members, volunteers,

staff and international aid workers for their valued contribution, dedication

and drive; it is our people who make a difference

New Zealand Red Cross has developed a strategy entitled “Towards 2020”

which outlines who we are, how we work and what we will do to achieveour mission. Our focus will be around five strategic aims; preparing for,

responding to and enabling recovery from disasters and crises; enabling

healthy and safe living; promoting a culture of social inclusion; attracting

and retaining highly engaged and diverse members, volunteers and staff;

having a strong financial base with growing income and robust infrastructure.

The call for our humanitarian work has never been greater including the

continuing needs of people and communities affected by the earthquakes in

Canterbury and Christchurch in 2010 and 2011. New Zealand Red Cross is

there for those in need, and will remain there for the most vulnerable.

Through the generosity of New Zealanders and others from 17 other countries

we have been able to provide cash grants and assistance through our long

term recovery programmes. Red Cross is supporting those in need and

helping prepare, strengthen and grow our own capabilities and the resilience

of our communities. We have lifted our own emergency response capacity

by restructuring and growing our volunteer emergency response teams.

New Zealand Red Cross has large, well-resourced and mobile teams available

to respond to a natural disaster. A disaster response team can be dispatched

as a self-contained unit with enough gear, tents and food to be self-sufficient

for 72 hours. The national disaster response team is part of a structure whichincludes locally based disaster welfare response teams and surge volunteers

as circumstances require.

We have continued to play an influential role within the Red Cross,

Red Crescent Movement and jointly pledged with the New Zealand

Government at the 31st International Conference in Geneva on a number

of humanitarian issues. We have advocated strongly in support of a treaty

to regulate the transfer of small arms and we are currently campaigning to

make nuclear weapons the target.

A seamless connection between local, national and international capabilitiesensures we can provide fast and relevant assistance. Our work internationally

continues to be well regarded and sought after, while our collaboration with

other National Societies remains integral to our development and learnings,

and also gives us the opportunity to support and guide others where needed.

Our lives are more interconnected, with the digital landscape increasing

our reach and ability to connect. Social media, and a new website and

intranet will play a more crucial role over the next year in enabling us

to do more and do better when disasters strike. New Zealand Red Cross

is committed to be there first, and remain there for the long term usingour people, and expertise in times of need.

John Ware

Chief Executive

CHIEF EXECUTIVE’S REPORT

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National BoardPenny MasonNational President

Penny hails from rural Hawke’s Bay and has been the National President since

2006, and was the Vice President for the two years before that. She has been

instrumental in developing and facilitating significant internal structural change

at New Zealand Red Cross, to ensure it is in a better position to connect with

local communities. Penny has also supported other National Societies across

the globe, more recently on governance advice in the Pacific.

A registered nurse, specialising in burns and plastic surgery, Penny has

devoted much of her life to volunteering in the community, and started her

commitment to Red Cross as a Red Cross youth coordinator in the 1980s.

Penny believes Red Cross is a fantastic organisation, with its local to global

aspect making it unique and interesting.

“I enjoy the feeling of belonging to a huge international family.

My vision during my time has been to rejuvenate the membershipand to ensure New Zealand Red Cross is in touch with the grass roots

by having a presence in all our communities and therefore reaching

more vulnerable people.”

Paul SteereNational Vice-President

After a long career in senior management and stewardship largely based

on international food production and marketing, Paul is now involved in

an eclectic range of governorship. He has director and chairmanship rolesin the salmon, wine, education, aviation, Australian seafood, and architecture

industries, alongside eight years with New Zealand Red Cross.

He says he find his work with Red Cross humbling, and while it is time

demanding, his “efforts pale by comparison with our overseas aid workers

and the many members and volunteers including professional colleagues on

the Foundation and Earthquake Grants Commission”.

Paul says the quintessential characterisation of New Zealand Red Cross was

clearly defined by the Federation Secretary General Bekele Geleta, during his

recent New Zealand visit, “our volunteers are undervalued for their wisdom

of experience, their commitment and passion. For them it is not a job but a

vocation and without this we would not be Red Cross”.

Alan Webb

Alan is a barrister based in Auckland dealing primarily with Environmental

Law. He was formally a prosecutor for the Crown and also worked at

New Zealand’s leading national law firm doing a mixture of commercial

and public law litigation. Alan is currently undertaking post-graduate studies

through Melbourne University on Public International Law with a focus on

international humanitarian law. He was formerly the chair of the CentralRegional Board and has been on the National Board for six years. Alan

is married with three young children.

Jennifer McMahon

Jennifer is a former nurse and nutritionist, functioning in both capacities

as an aid worker with the International Committee of the Red Cross from 1983

to 2000. Today she is a company director and has been New Zealand Red Cross’

Dunedin branch secretary for the last five years.

Jennifer is happy and proud to be part of an organisation that promotes

and adheres, to concepts and beliefs people can embrace and be passionate

about. She says Red Cross shows it is flexible and in touch with our society

as it begins more domestic programming, in conjunction with the renowned

international work that has been done now for more than 50 years. This will

be enhanced as the area council structure is embedded and strengthened,

to provide an enhanced ‘living network’ within our communities, making Red

Cross even more relevant.

Paul KiesanowskiPaul Kiesanowski has had an extensive 33 year career with leading accounting

and professional services partnerships and is currently Managing Partner of

KPMG Christchurch. Paul joined New Zealand Red Cross’ Board in July 2011.

Paul chairs the Board’s Audit and Risk Committee and joins Paul Steere as

a Trustee representative to the Red Cross Foundation, which manages the

safe keeping and investment of the Society’s reserves and funds.

Paul says: “New Zealand Red Cross has made a significant contribution

to assisting vulnerable people in our communities and overseas. I’ve longadmired their work and it’s a privilege to be part of the Board in this

capacity and during a time of so much need, especially in Canterbury.”


GOVERNANCE

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13

GOVERNANCE

Debby Butler

Debby brings to New Zealand Red Cross over a decade of governance

experience. She has run her own consultancy business, and had management

careers in the public and private sectors. She is currently National Manager

Risk and Assurance for the Department of Corrections. While a Red Cross

volunteer and branch member Debby has found time to volunteer her

governance expertise with Red Cross National Societies in the Pacific.

Debby said the Red Cross Movement is inspiring, with its people sharing

an infectious commitment and passion. She always feels humbled to workalongside Red Cross people at all levels.

“I am in awe of the great many members who have given so much

of themselves, some with 40 years’ ser vice, 50 years, and even

longer. These people are the backbone of the society and quietly

continue to raise funds and do good work in the community without

any thought about recognition or thanks.”

Aaron Turner

A member of New Zealand Red Cross’ youth panel, Aaron Turner has

been involved with Red Cross in some capacity for more than eight years.

After competing studies at Otago University he moved to Auckland where he

is currently studying to become a paramedic.

Aaron claims to have the Red Cross ‘virus’. This fuels his passion for what

Red Cross does, and ensures that most of his spare time is spent working on

committees and community programmes for it, including representing

Red Cross at recent Asia-Pacific and Pacific youth forums.

Aaron says New Zealand Red Cross may be small, but one can neverunderestimate its successful living network: its people and the impact

they have at a grassroots level.

Mat Darling

As the youth representative on the National Board, Mat has been involved

with Red Cross for five years, with his commitment focused on youth

involvement in grass roots activities related to emergency response. Mat is a

third-year student at Otago University studying for a Bachelor of Science.

He says Red Cross is an amazing organisation, helping the most vulnerable

in times of need, whether locally, nationally or at an international level.

Mat claims it is sobering to experience this first hand, and also to see what

a difference Red Cross makes in people’s lives, which is why he volunteers.

“I have a lot of respect for those who are out there supporting

New Zealand Red Cross, b e it on the street corner with a bucket,

delivering meals on wheels or providing disaster relief. They work

tirelessly for countless hours to strengthen our society and ultimately

make our country and world a better place.”

Steve Osborne

Originally a high school biology teacher, who promptly retrained as a

psychologist, Steve first became involved with Red Cross in his home country

of Canada as a blood donor in 1976.

Steve brings a wealth of experience from 20 years as a psychologist to holding

prominent positions on several international governing boards. He is currently the

chief executive and registrar of the New Zealand Psychologists Board.

Steve likes Red Cross’ ‘purity’ of purpose and single agenda: to help those

most in need. He is proud of the work Red Cross has done in Christchurch,

and its international aid worker programme, he says is a great example of

the effectiveness of Red Cross in action.

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

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

Debby Butler, Alan Webb andPaul Steere

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

Red Cross’ network enables it to call upon its people to support the needs

of the vulnerable in the community during times of adversity. Last winter,

a massive snowstorm blanketed Christchurch, threatening to limit, even halt,

essential services. Roads were slippery and conditions hazardous, but through social

networks, including radio, Red Cross was able to quickly mobilise people with fourwheel drive vehicles to support the delivery of 800 hot meals to those in need;

no one missed out.

Every area across New Zealand is different, from their needs and wants

to capabilities and requirements. Our members, volunteers and staff are a

living network in these communities, enabling them to identify needs and

make a difference where they are needed the most.

In Taranaki, the No Limits youth programme was set up in 2010 to empower

10-to-12 year olds to reach their full potential through personal developmentand positive integration. The programme selects students who, because of

socioeconomic or family situations, shyness or social isolation, would not

normally get the opportunity to attend a development programme.

Across the country, with media still highlighting the increasing number

of young people abusing alcohol and drugs, New Zealand Red Cross’ harm

minimisation programme Save-a-Mate continues to help more at risk youth.

Participation rates have increased by close to 1064 per cent on last year with

growing interest from secondary schools and community groups, and other

agencies who want to promote healthy and safe living.

Other programmes, like community transport, are also meeting a wider need

in Hawkes Bay, with Red Cross members helping get secondary school students

to hospital and physiotherapy appointments. A partnership with the local health

board is ensuring women aged 45 to 69 years, who may not otherwise go, are

being transported to have mammograms from BreastScreen Aotearoa.

This is a small sample of the great work our members, volunteers and staff

undertake on a daily basis, working with and supporting communities.

Next year we will continue to utilise our people, who are part of the lifebloodand fabric of our communities, to interconnect and respond to, support and

build capacity within communities, to reach more and do better.

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

Watch theSave-a-Mate

programme

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

New Zealand Red Cross understands people’s time is often constrained and

therefore precious, so addressed this by launching an online first aid learning

platform. Its pick-up in the market exceeded expectations. The tool provides

an alternative to days off work to attend a first aid class; instead individuals,

businesses and communities now have the opportunity to learn online

in their own time.

Events of this past year have raised an alarming awareness of how precarious

life can be and highlighted the need for people to know first aid before they

need it. It was this ability to make a difference in critical situations that led to

a number of incredible stories following New Zealand Red Cross first aid training.

“The value of first response training was deeply reinforced for me.

I could help to save this man’s life because I did Red Cross first aid training”

New Zealand aid worker physiotherapist Cheryl Campbell said after saving

a man who went into cardiac arrest in the Red Sea.

Matthew Hancock’s seven-year-old son was racing through the kitchen, when

he tripped and boiling water from a nearby pot poured down his back. “There

would have been nothing worse than not knowing what to do. It was timely

that I completed a Red Cross first aid course late last year and knew the key

components of dealing with burns,” Matthew said. Six months later, to the

untrained eye, Nathan bears no scar.

And for Jodie Alexandra it was only a month before her Red Cross first aid

training was needed. Stumbling upon an accident in Lower Hutt she performed

CPR on a man who had gone into cardiac arrest. After a triple by-pass he

walked away to tell the tale. “This is why the New Zealand Red Cross course

was utterly invaluable,” Jodie said. “As long as you are abled bodied you can

do it, everyone can do it, everyone at the scene could have done it; they just

need to know how.”

It is no surprise that New Zealand Red Cross’ first aid training programme

is the only provider in the country that can boast a double highly confident

rating following a New Zealand Qualifications Authority review.

New Zealand Red Cross automated external defibrillators, or AEDs, remain amarket leader. Being modern and easy to use, with no buttons, has cemented

its reputation and attractive status, making them a must have for many.

The digital landscape will be integral for the expanding New Zealand first

aid programme. New and innovative products and services will ensure

Red Cross remains competitive, and relevant and valuable to our communities

in their time of need. New Zealand Red Cross first aid will continue to equip

communities to be better prepared and remain resilient.


Check out first aid’sonline learning platform!

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

The power of this network and their generosity enables New Zealand Red Cross

to deliver programmes that respond to needs, and repair, restore and better

prepare communities in times of adversity. The success of the 2012 Annual

Appeal is one example of this, with direct mail donations reaching more than

$370,000 and on the street collections totalling around $400,000.

Our project partners programme, now in its 12th year, continues to grow,

to around 25,000 dedicated donors. We thank our committed regular

donors for their generous support in giving New Zealand Red Cross more than

$6.2 million, about 70 per cent of our fundraising income. This makes project

partners an integral enabler for Red Cross to do what it does best – help those

most in need.

We are also grateful to our direct mail donors, who help us to be there to

save and change lives. Bequests continue to remain a strong income source,

with further engagement planned over the next year.

Fundraising support continues from our valuable members, branches

and groups, who are instrumental in enabling us to reach further into

New Zealand communities and help more here and overseas.

We continue to improve and review current operating procedures to ensure

New Zealand Red Cross leads the charity sector in accountability, transparency

and credibility. The ways we engage with our people, donors and beneficiaries

will increase as we integrate current database systems and launch a new

fundraising suite.

Changes in the digital landscape are ensuring we connect with our donors in more

relevant and engaging ways and remain transparent about where their donationsare being spent. The launch of a direct mail newsletter, KindRed, which was met

with a fantastic response from our supporters, will help us achieve this goal.

New Zealand Red Cross remains committed to restoring and better preparing

communities for the long-term. Corporate partners like New Zealand Post

Group, Country Road and Kathmandu have ensured we can do this and stay

relevant with our recovery activities in Christchurch. They, along with

our other donors, are helping us become better prepared nationally so we

can respond relevantly when a need arises.

New Zealand Red Cross will continue to focus on keeping costs to a

minimum, so our programmes and activities receive the greatest amount of

funding. It is about ensuring every dollar makes a real difference every day.


Have a look at ournew fundraising mailer

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17

Purex Community Partner

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

Red Cross’ Annual Appeal

Johnson & Johnson Medical

Johnson & Johnson MedicalLoyalty Partner

Supporting the development of a new programme to educate and

empower New Zealand’s youngest children

- .

KathmanduCommunity Partner

Supplying clothing and equipment to emergency response teams

and encouraging community support

Country RoadRetail Partner

Sponsor of Fashion Trade and supporter of Red Cross shops

throughout New Zealand

New Zealand Post GroupEmergency Response Partner

Providing vital support when the need is greatest

New Zealand Red Cross is deeply appreciative to those who have contributed

so generously. We extend our particular thanks to the following organisations

for their extraordinary support.

Foodstuffs South Island Community Trust • Fonterra •

Vodafone Foundation • Goldman Sachs Gives • ASB • Cranwood Co. •

Shell • The St Judes Trust • BP • Silver Fern Farms • Westfield •

Genesis Energy • Telecom Foundation • The Radio Network •

Coca-Cola Foundation • Pfizer • Sky TV • Credit Suisse • The Warehouse •

GlaxoSmithKline • Mobil • Sanofi-Aventis • Gough Gough & Hamer •

Johnson & Johnson Group • Fisher & Paykel • Bell Gully


Key partners:

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

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18


Red Cross publications

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

Following a year of adversity, the communications and marketing team,

which includes policy and advocacy, is building a more sustainable, relevant

and innovative future for New Zealand Red Cross.

A new website, currently being developed with a launch date set for December,will provide an engaging picture of what Red Cross is doing. The user-friendly

site will offer greater transparency for our donors, easy access and booking

for services such as first aid courses and restoring family links, and greater

support to those looking for help. For the first time our website will also

connect Red Cross people in one place. An interface for members, Red Cross

Board and volunteers will allow them access to a new intranet, as part

of an internal communications strategy.

Electronic newsletters have been developed with a range of purposes, from

supporting the chief executive’s weekly message to discussing internationalhumanitarian law and communicating fundraising messages to donors. In the

area of social media, Facebook posts have reduced in the last six months by

a third, but tweets have increased. These now focus on optimal time slots

and content that our users are interested in. As a result, engagement has

increased significantly, while the number of followers is growing steadily.

In a first, we tweeted live from the Christchurch commemorative service,

bringing the nation together to mourn one of our country’s greatest tragedies.

We also used social media to celebrate our annual appeal, and maintained

internal and external user interest for a week.

Our own living network is integral to our social media growth. This was

highlighted by a tweet for retail donations in Wellington seeing @NZRedCross

trending in Wellington and getting 22 retweets. The launch of our national

disaster response team saw 40 people share the content, 200 people click

through to our website and more than 200 views of the video posted.

Other key activities include supporting media and marketing for international

operations, our aid worker programme, first aid, retail and national programmes,

as well as undertaking media training with senior management, staff and

emergency response volunteers. This year has also seen the development and

creation of recruitment campaigns for volunteers, a digital asset portal and

streamlining of new marketing collateral, all helping to inform the development

of a brand strategy. New Zealand Red Cross’ brand continues to remain highly

visible, its power helping shape how we function and grow.

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

Feb Live tweeting from the Christchurch Commemorative Service – 22 February

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

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

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

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

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

See an interview with one of our aid workers

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

Red Cross has been at the forefront of advocating for, and educating people on wars,laws and humanity. This remains a key priority of New Zealand Red Cross and the wider

Movement. So it was no surprise that in November New Zealand Red Cross made seven

pledges at the International Conference, which brings together ICRC, the Federation and

187 national societies worldwide. Two were individual pledges, four were joint with our

Government and we teamed up with other Pacific Island National Societies and one other.

Several of these pledges concerned strengthening our work in this area.

Mainstream and social media interest in IHL activities has exceeded expectations,

with a consistent interest in new programmes achieving record coverage, not only for

the programme but in comparison with other Red Cross activities. This programme isreaching further and reaching more through the digital landscape.

The power of social connections is illustrated by Red Cross’ being able to gain

significant reach and success in raising public and political awareness of the importance

of a strong and comprehensive Arms Trade Treaty for New Zealand and the wider

Pacific region. Every year, because of the widespread availability and misuse of

weapons, hundreds of thousands of people are displaced, injured, or killed. Recent

armed conflicts further highlight the crucial need for legally binding standards that

stop irresponsible arms trades and transfers. Prior to the United Nations negotiating

conference in July, New Zealand Red Cross joined with Amnesty International –

Aotearoa New Zealand and Oxfam New Zealand to raise public and government

awareness of the need for a strong and robust Arms Trade Treaty.

Youth are supporting the IHL programme. Woodford House in Havelock North

hosted the first Women and War seminar highlighting the issues faced by women

and girls in modern warfare. Aid workers and people from a refugee background

shared their stories, with an interactive photo exhibition and role playing putting

the girls themselves in the spotlight. Youth, the community and Red Cross

members and staff were brought together to teach, learn, and develop a greater

understanding of this issue and how it may affect their own environments.

The ‘make nuclear weapons the target’ awareness campaign was also launched

through youth. An essay competition was held using mainstream and social media

and education institutions to canvas student interest and involvement. In collaboration

with ICRC, the essay asked New Zealand tertiary students to answer the question

‘why do we need an international treaty to ban nuclear weapons?’, with a $1,000

cash prize for winning. Later in the year the campaign will take on another level,bringing in celebrities, war veterans and students to help educate a new generation

on the impact of nuclear weapons. Our www.targetnuclearweapons.org.nz website

was launched at Parliament on 30 August. This site calls on people to sign up online

using their Facebook or Twitter accounts and when the power of humanity offsets the

force of 150,000 Hiroshima bombs, the estimated combined force of 20,000 nuclear

weapons held globally, a social explosion will be ignited.

Our lives are more interconnected than ever before and this enables our message to be

delivered to more. Young people are more engaged and are keen to voice their opinions

on issues, while other members of the population want to share knowledge and lessonslearnt. This year New Zealand Red Cross’ international humanitarian law programme will

capitalise on this connection to bring a united voice to make a difference.

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

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Red Cross ShopsOur national footprint of shops continues to grow. Over this last year nine new stores were opened and threewere revamped to meet changing community needs. It is a growing presence New Zealand Red Cross hasnever had before, helping us to connect with local communities by offering a quality service, with the addedincentive that all profits raised are invested directly back into our work supporting the most vulnerable.

When the Matamata shop opened, it became the flagship in launching a

New Zealand Red Cross wardrobe challenge celebrating World Red Cross

Red Crescent Day. It was an innovative marketing platform which produced

significant outcomes. The store broke Red Cross sale records in its openingweeks as well as achieving the most interest on social media for a single

campaign. Media interest across the country was also high. By the third

week, the store had made more than $33,000.

Our network of stores is brought to life by 1,200 volunteers, who make up

98 per cent of our retail workforce. Their time is invaluable in ensuring we

can deliver. The stores are more than a shop; they are part of a community,

servicing needs and creating connections that begin with our volunteers.

In Hamilton, the stores are supporting people from migrant backgrounds

by providing vouchers. In F itzroy, shop loyalty vouchers are being offe red,

another pioneering trial aimed at connecting with more people.

Innovation and development have changed the landscape of our retail

presence. For the first time, we bought an existing retail store and turned

it into a Red Cross shop, a move we will look to continue as part of our target

of opening a further eight stores over the next year. In another first, a joint

venture with a local recycling outlet in Rotorua has created a 500sqm store

in the city centre, while a 600sqm processing centre in Hamilton offers

a distribution and sorting point to ensure the right products, of the right

quality, go to where they are needed most.

Unfortunately the February Christchurch earthquake saw the closure ofone of our central city stores there. Although the building may be lost, the

volunteers were keen to remain with Red Cross so relocated to other stores,

with the shop coordinator taking a new role in Nelson.

Ensuring Red Cross maintains its high standard has resulted in a full assessment

of the safety and quality of all buildings we operate out of. Three shops had

to relocate due to seismic risk. The Ashburton shop, operated by Red Cross

members, was the first to move.

In ensuring our shops remain leading edge, the move into the digital realm

is growing more important. A recent tweet calling for clothing donations to

Wellington shops was one of New Zealand Red Cross’ most popular Facebook

posts and achieved our first trending post on Twitter.

Remaining at the forefront of integration and outreach, Red Cross shops will

continue to be original, relevant and appealing to communities. This successful

living network uses our people and services to make a difference.

The new Red Cross shop in Tawaopened in early 2012

A sneak peak atRed Cross shop

Pinterest page

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

We mobilised 2,000 collapsible water containers, hand sanitisers, tarpaulins

(to be used to capture rain) and two emergency desalination units.

New Zealand Red Cross is leading the charge through technological innovation.

Desalination units are now so compact and portable they can be taken on an

airplane as checked in luggage. In this instance we were able to teach Tuvalu

residents how to distil water and work independently to support their own

community. The desalination units remain a permanent fixture on the island.

For the first time, first aid training in situations of violence was developed and then

offered, in partnership with Red Cross for Papua New Guinea. Tonga, Samoa and Fiji

will also receive training, adapted to the context of each country. Although most of

these nations are not involved in conflicts, a changing global landscape has led to adesire to be responsive to changing needs and be prepared.

While we are there for our neighbours, New Zealand Red Cross’ reputation

ensures we also make a lasting contribution to some of the biggest humanitarian

needs across the globe. In some of the world’s most complex situations, likeGaza and Syria, New Zealand aid workers are there. Our aid worker programme

gained high praise this year, following an independent review released in late May.

Feedback was provided on the relevance, efficiency, effectiveness and sustainability

of the programme and the prerequisite training to be an aid worker.

In October Red Cross aid worker Andrew Cameron became one of

25 New Zealanders to receive one of the world’s highest nursing honours, the

Florence Nightingale medal at a ceremony at Government House. Only 50 Florence

Nightingale medals are awarded worldwide every two years.

Every year, New Zealand Red Cross remains committed to supporting the response

to disasters. In the past year we have supported crises across Asia, Africa and

the Middle East, contributed $847,000 to Pacific development programmes and

supported 48 missions overseas. New Zealand Red Cross provides many types of

support, including helping 340 individuals get prosthetics in Laos.

At home, the Christchurch earthquake was the catalyst that led to being better

prepared to service our own needs. If a disaster strikes in New Zealand, anywhere

at any time, Red Cross has a well-trained response team available. Never before

has New Zealand Red Cross had such a large, well-resourced and highly mobileteam on hand to respond. The national disaster response team will provide all the

services of the Red Cross disaster response teams, as well as offering pre-hospital

emergency care, and urban search and rescue capability. This team can be sent

as a self-contained unit, with enough gear, including tents, eating utensils and food

to be self-sufficient for 72 hours. This team complements the existing volunteer

structure of disaster surge volunteers and disaster welfare support teams. Our most

successful living network is our people. The combined integration and outreach of our

members, volunteers and staff enable us to reach further, do more and do better.

Check out Red Cross’national disasterresponse team


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Aid workers oninternational missions

* mission extended | **mission cancelled

The below list is made up of aid workers supported by New Zealand Red Cross between 1 July 2011 and31 June 2012. This includes aid workers that ended missions in 2011/12 as well as those with start datesin the 2011/12 financial year.

Middle East

Jodye Tomalin* | MENA zone (Lebanon) SecurityCheryl Campbell | Gaza Physiotherapist Guru Dev Singh | Gaza HealthAndrew Cameron | Georgia HealthLindah Jury | Iraq Health

Rachael Maunsell | Iraq HealthLouise Humphreys | Afghanistan HealthAndrew Cameron | Afghanistan HealthJacquee Dixon-West | Afghanistan HealthJoyce Hood | Afghanistan HealthRebecca Barrell | Afghanistan HealthLouisa Akavi | Afghanistan HealthGail Corbett | Afghanistan Health

Pakistan HealthHaydar Alwash | Pakistan Surgeon

Ana Zarkovic | Pakistan Water and sanitationGraham Duggan** | Pakistan HealthAmanda Scothern | Pakistan Branch development Hillary Cullen | Pakistan HealthRebecca Barrell | Pakistan Health

Western and Northern Africa

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

East Africa

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

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communications / IT & T ERU

disaster management & recovery

health / first aid / surgeons / hospitalmanagement / physiotherapists

logistics / resource mobilisation

organisational and branch development /monitoring and evaluation

relief

security / economic security

shelter /community habitat

water / water & habitat / sanitation


Asia

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

Pacific Region

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

Fiji Disaster management Greg Johns | Tuvalu Water & habitat

Peter Winthrop| Samoa First aid

Vanuatu First aidFiji First aidTonga First aid

Mission areas

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

A distressing effect of conflict and natural disasters is population

displacement, leaving people unable to contact family or friends. People

may not know where to turn to find or contact loved ones or even to find

out if they are still alive. In these situations New Zealand Red Cross works

worldwide to restore and maintain contact for separated families by tracingfamily members and exchanging messages of news.

In this case, the mother relocated to New Zealand and later heard through

a friend that her son was alive, he had been spotted at a church in Nairobi.

She contacted New Zealand Red Cross and used its restoring family links

service. The neutrality and reach of Red Cross’ network help make it easier

to exchange family news, re-establish contact and clarify the fate of the

missing across borders, frontlines and into areas most cannot reach.

Five months after this mother heard word of her son, the ICRC sent a

letter to New Zealand Red Cross: he was alive and wanted to see her.

Not every tracing case is solved, or has a happy ending, but through the

combined network of the Red Cross Movement, its people, services and

universality New Zealand Red Cross is able to respond and help restore

contact where it can.

The restoring family links service also facilitates the issue of ICRC travel

documents. This helps people who need to leave their country of residence

and do not have access to official identification documents, like a passport.

Applicants are required to have their entry visa pre-approved by New Zealand

Immigration to receive this service.

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

New Zealand.

Ensuring Red Cross’ restoring family links service remains technologically

relevant, is essential to keeping the service valuable. In cooperation with

National Societies, the ICRC is working on a new, interactive website for

people wishing to restore contact with loved ones. The site will complement

additional services that will be available on New Zealand Red Cross’ website

from December.

Saying goodbye to a loved one in any circumstance can be hard. In situations

of conflict and disaster that opportunity may never arise, and many don’t

know if they will ever see or hear from family members again. Red Cross

provides peace of mind and hope to people who have been separated.


A Red Cross message

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New Zealand Red Cross is committed to thelong-term recovery of Christchurch. We areexpanding our outreach programme, our workwith bereaved families and launching a range ofnew programmes over the next year.

“Pretty cool... can’t wait to take this home.”

— six year-old Gus Khuton on receiving a torch radio

“The generosity of those who donated to the

appeal has been staggering, and working through

how to distribute the funds has been a very big

responsibility, and one all the commission members

have not taken lightly.”

— Chair of the New Zealand Red Cross 2011 Earthquake

Commission Chair Sir John Hansen.

“It was a big occasion and the water was very good.”

— Jim Curnow on receiving a enhanced water filter grant just in

time for his 90th birthday.

EARTHQUAKERECOVERY UPDATE

CANTERBURY

Torch radio distributions at 1 July 2012

Primary school children

Elderly people

People with disabilities

Refugees and migrants

Community eventsOutreach

Distributed fromChristchurch office

11,6061,548

4,447

622

968720

51

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

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

2011 Emergency & Hardship Grant 2011 Alternative Severage

System Grant 2010 Hardship Grant 2011 Temporary School Grant 2011 Winter Assistance Grant 2010 Damaged Home Grant 2012 Winter Assistance Grant 2011 Bereavement Grant 2010 Emergency Grant 2010 Relocation Grant 2012 Disability Support

2011 Independent Advice Grant All Other Grants

2,189 doorknocks

475 winter warmer packs

167 mobility assistancevouchers$125m in funds

raised

80,000 grantsrecipients

19,962 torch radioshanded out

$30mcommittedgrantfunding

259torch radiopresentations tocommunity groups

$14mgrants andprogrammesunder development1,120 outreach visits $5m spent on

programmes

62 outreachvolunteers


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FINANCIAL STATEMENTS

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For the year ended 30 June 2012

Actual2012

Planned2012

Actual2011

Planned2011

Actual2010

Planned2010

Actual2009

International Programmes

Delegate deployments achieved 53 60 58 55 55 65 56

Delegate deployment months achieved 283 330 259 280 260 300 290

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

Number of International Special Appeals supported 8 11 15 8

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

Development Programmes Supported 2 2 4 4 7 6 6

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

Restoring Family Links requests administered 140 - 66 75 99

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

Emergency Management

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

Community Programmes

Develop new National Programmes - 1 1 1 1 1 2

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

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

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

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

Patients transported in communitytransport programmes

13,269 8,545 1 5,774 1 1,133 1 0,059 7,889 7,874

Education and Training

Maintain registration as PTE Yes Yes Yes Yes Yes Yes Yes

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

Retail

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

New shops opened 9 8 4 8 8 12 4

Statement ofService Performance


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

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

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

On reviewing the statement of financial performance it can be noted that New ZealandRed Cross including the Foundation, recorded a surplus of $7.6 million. AccumulatedFunds increased by $1.5 million and a continuation of donor support saw the Christchurch

reserve increase by $8.2 million during the year.

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

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

The total surplus of $9.1 million reported by New Zealand Red Cross excluding theFoundation is affected by the accounting policy of recognising all special appeal revenueand expenditure in the year that it is received or expended. In the current year special

appeal reserves increased by $9.1 Million (primarily Christchurch). Without the increasein reserves there was a near breakeven result ($37k) on our conventional activitiesfor the year which was consistent with the National Board’s expectations.

New ZealandRed Cross Inc.

Conventional Activities(in thousands of dallars)

2012 2011

Trading & Adminis trati on Activ ities (526) (398)

Fundraising Activities -Revenue 8,891 9,171

Humanitarian Activities - Expense (8,402) (7,959)

Surplus (Deficit) from Activities (37) 814

TRADING AND ADMINISTRATION ACTIVITIES

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

FUNDRAISING ACTIVITIES

Fundraising revenue reflects a decrease of $91 million in the current year due to the reductionin Christchurch donations as this appeal winds down. After deducting the impact of public andgovernment special appeal donations in both periods there is an increase in other fundraisingrevenue of $2.2 million or 18%. The major component of this increase has come from ourregular monthly donors who have increased their total contribution by $1.3 million which is25% above last year. The Annual Appeal revenue of $0.5 million is also additional given thatlast year’s appeal was all attributed to the Christchurch earthquake appeal.

CORE ACTIVITIES

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

The work carried out by Branches represents a significant component of both fundraisingactivity and domestic humanitarian activity. While the volunteer nature of this activity isnot measured in the financial statements the actual revenue generation achieved byBranches in the year totalled $1.3 million from activities including the annual appeal,special appeals, book sales, property rentals, lottery sales, and meals on wheels.

Expenditure on these activities totalled $0.6 million providing a surplus of $0.7 milliontowards other activities.

CHRISTCHURCH RESERVE

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

STATEMENT OF FINANCIAL POSITION

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

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

Bruce JonesNational Business Services Manager

Financial Summary

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

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

New Zealand Red Cross& Red Cross Foundation

New Zealand Red CrossIncorporated

Note 2012 2011 2012 2011

Trading and Administration Activities

Income 15,706 14,243 14,990 14,311Expenditure 15,624 14,802 15,516 14,709

Trading and Administration Activities Surplus/(Deficit) 2 82 (559) (526) (398)

Fundraising Activities

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

Expenditure 3,705 2,744 3,705 2,876

Fundraising Activities Surplus 3 28,481 120,489 28,455 120,357

Humanitarian Activities

Expenditure 18,876 74,888 18,876 74,888

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

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

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

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

Statement of

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



2012 2011 2012 2011


Other Comprehensive Income

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

Restricted funds - 361 - 361

Total Other Comprehensive Income (817) 1,965 (817) 1,965Total Comprehensive Income for the Year 6,789 48,649 8,236 47,036


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

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

NoteOpeningBalance

ComprehensiveIncome

Funds Transfers

ClosingBalance

New Zealand Red Cross & Red Cross Foundation 2012

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

Restricted reserves 8 2,452 - (2,069) 383Christchurch reserve 9 44,204 - 8,192 52,396

Asset revaluation reserve 11,541 (817) - 10,724

Total Members’ Funds 110,977 6,789 - 117,766

New Zealand Red Cross & Red Cross Foundation 2011


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

Christchurch reserve - - 44,204 44,204

Asset revaluation reserve 9,937 1,604 - 11,541


New Zealand Red Cross Incorporated 2012


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

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

Asset revaluation reserve 11,541 (817) - 10,724


New Zealand Red Cross Incorporated 2011


Restricted reserves 2,183 361 (92) 2,452Christchurch reserve - - 44,204 44,204

Asset revaluation reserve 9,937 1,604 - 11,541



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Statement ofFinancial PositionAs at 30 June 2012in thousands of dollars



Note 2012 2011 2012 2011

Members’ Funds

Accumulated funds 54,263 52,780 37,055 34,125Restricted funds 8 383 2,452 383 2,452

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

Asset revaluation reserve 10,724 11,541 10,724 11,541

Total Members’ Funds 117,766 110,977 100,558 92,322

Comprising:

Assets

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

Trade and o ther rece ivab les 11 2,018 1,986 1,917 1,925

Inventories 739 1,047 739 1,047Investments 12 3,944 6,349 5,823 7,997

Total Current Assets 70,109 63,191 66,860 60,436

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

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

Intangible assets 14 510 634 510 634

Total Non-Current Assets 53,538 53,701 39,564 37,664

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

Liabilities

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

Income received in advance 413 276 413 276

Provision for employee entitlements 18 819 752 819 752

Provision for Samoa recovery project 2,139 3,296 2,139 3,296

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

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

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

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

Penny Mason John WareNational President Chief Executive


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



2012 2011 2012 2011

Cash Flows from Operating Activities

Trading and administ ration activit ies 16,036 13,479 15,663 13,802

Fundraising activities 32,599 122,736 32,573 122,736

Cash Inflow from Operating Activities 48,635 136,215 48,236 136,538

Trading and administ ration activit ies 15,115 14,177 15,007 14,084


Humanitarian activities 18,876 74,730 18,876 74,846

Cash Outflow from Operating Activities 37,608 91,651 37,500 91,806

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

Cash Flows from Investing Activities

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

Sale of property, plant and equipment 56 82 56 82

Cash Inflow from Investing Activities 9,566 3,672 482 1,319Purchase of investments 8,799 2,304 109 1,165

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

Purchase of intangibles 12 39 12 39

Cash Outflow From Investing Activities 10,994 3,534 2,304 2,395

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

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



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

Add opening cash 53,809 9,107 49,467 5,811

Closing Cash 63,408 53,809 58,381 49,467

This is represented by:

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

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

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


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2012 2011 2012 2011

Reconciliation of the Total Surplus for the Year

with Net Cash Inflow from Operating Activities


Add Non-Cash Items

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

Amortisation charge 136 176 136 176

Add/(Deduct) Changes in Working Capital Items

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

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

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

Increase in income received in advance 137 3 137 3

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

Add/(Deduct) Investing Activities

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

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

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



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Notes to theFinancial StatementsFor the year ended 30 June 2012

1. SUMMARY OF ACCOUNTING POLICIES

Reporting Entity

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

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

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

Statement of Compliance

Red Cross is a society incorporated under the Incorporated Societies Act 1908.The Red Cross Foundation is a charitable trust registered under the Charitable Trusts Act1957. Both Red Cross and the Red Cross Foundation are registered as charities under the

Charities Act 2005. Red Cross is a Public Benefit Entity.

The financial statements have been prepared in accordance with Generally AcceptedAccounting Practice in New Zealand. They comply with the New Zealand Equivalentsto International Financial Reporting Standards and other applicable financial reportingstandards as appropriate for public benefit entities.

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

The functional and presentation currency is New Zealand dollars.

Basis of Preparation

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

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

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

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

Basis of consolidation

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

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

Significant Accounting Policies

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

a. Revenue Recognition

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

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

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

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

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

First aid training courses completed during the year are recognised as incomebased on the percentage of completion method. Revenue from the sale of goods isrecognised when the risks and rewards of ownership have been significantly transferredto the buyer.

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

b. Expense Recognition

Expenses are recognised on an accruals basis.

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

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

Actual or constructive commitments made by the National Board to fund specific projects

from restricted funds are recognised as provisions. An obligation to fund a project orexpenditure is considered to exist when the National Board has agreed to a specific projectplan and the intention to fund the project or expenditure has been formally communicatedto the recipient.


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Provision is made for benefits accruing to employees in respect of wages, salaries andannual leave when it is probable that settlement will be required and they are capableof 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 thetime of settlement.

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

c. Asset Recognition and Measurement

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

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

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

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

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

Asset Class Depreciation Rate

Buildings 2.0%

Computer Hardware 33.3%

Equipment 20.0%

Furniture and Fittings 10.0%

Motor Vehicles 10.0% to 20.0%

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

d. Impairment of Assets

At each balance date, the carrying amounts of tangible and intangible assets are

reviewed to determine whether there is any indication that those assets have sufferedan impairment loss. If any such indication exists, the recoverable amount of the asset isestimated in order to determine the extent of the impairment loss (if any).

The recoverable amount is the higher of fair value less costs to sell and value in use.In assessing value in use, the estimated future cash flows are discounted to their presentvalue using a pre-tax discount rate that reflects current market assessments of the timevalue of money and the risks specific to the asset for which the estimates of future cashflows 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 isrecognised in the Statement of Financial Performance immediately, unless the relevant asset iscarried 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 isincreased to the revised estimate of its recoverable amount, but only to the extent thatthe increased carrying amount does not exceed the carrying amount that would have

been determined had no impairment loss been recognised for the asset in prior years.Areversal of an impairment loss is recognised in the Statement of Financial Performanceimmediately, unless the relevant asset is carried at fair value, in which case the reversalofthe impairment loss is treated as a revaluation increase.

e. Income Tax

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

f. Members’ Funds

Funds comprise Accumulated Funds, Restricted Funds, Christchurch Reserve and the AssetRevaluation Reserve.

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

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

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

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

g. Financial instruments

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

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

Financial assets are recognised and derecognised on trade date where purchase or sale ofan 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 fairvalue, net of transaction costs.

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

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

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

at amortised cost using the effective interest method.

h. Statement of Cash Flows

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

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

i. Goods and Services Tax (GST)

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

j. Comparative amounts

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

NOTES TO THE FINANCIAL STATEMENTS

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2. TRADING AND ADMINISTRATION ACTIVITIES

First Aid

Training

Red Cross

Shops

Management &

Administration

New Zealand Red Cross

& Red Cross Foundation2012 2011

Income

Services and goods sold 6,270 5,784 - 12,054 10,647

Public donations - - - - 297

Rents - - 223 223 214

Grants processing support - - - - 674

Interest and dividends - - 2,822 2,822 2,499

Other income - 9 598 607 (88)

Total Income 6,270 5,793 3,643 15,706 14,243

Expenditure

Personnel costs 3,408 1,212 2,541 7,161 6,606

Trading purchases 510 783 - 1,293 1,256

Property costs 182 1,208 587 1,977 1,792

Other expenses 1,142 633 2,410 4,185 4,192

Depreciation charge 95 136 565 796 722

Amortisation charge - - 136 136 176

Audit fees - - 76 76 58

Total Expenditure 5,337 3,972 6,315 15,624 14,802

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

First Aid Training

Red CrossShops

Management &Administration


2012 2011

Income

Services and goods sold 6,270 5,784 - 12,054 10,647

Red Cross Foundation - - 750 750 750

Public donations - - - - 286

Rents - - 223 223 214

Grants processing support - - 500 500 924

Interest and dividends - - 1,410 1,410 1,427

Other income - 9 44 53 63

Total Income 6,270 5,793 2,927 14,990 14,311

Expenditure

Personnel costs 3,408 1,212 2,541 7,161 6,526

Trading purchases 510 783 - 1,293 1,256

Property costs 182 1,208 587 1,977 1,792

Other expenses 1,142 633 2,309 4,084 4,185

Depreciation charge 95 136 565 796 722

Amortisation charge - - 136 136 176

Audit fees - - 69 69 52

Total Expenditure 5,337 3,972 6,207 15,516 14,709

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

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


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

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3. FUNDRAISING ACTIVITIES



2012 2011 2012 2011

Income

Public donations

– Project partners 6,256 4,985 6,256 4,985

– Annual appeal 535 - 535 -

– Direct mail 1,352 1,417 1,352 1,417

– Lottery 158 193 158 193

– Other 2,058 2,035 2,044 2,035

Special appeals

– Public 17,145 103,754 17,145 103,754

– New Zealand Government (disaster relief) 500 7,184 500 7,184

– Interest 1,888 231 1,888 231

New Zealand Government (delegate support) 1,000 1,000 1,000 1,000

Contracts - 917 - 917Legacies 1,290 1,511 1,278 1,511

Other 4 6 4 6

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

Expenditure

Personnel costs 922 796 922 796

Other expenses 2,783 1,948 2,783 2,080

Total Expenditure 3,705 2,744 3,705 2,876

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

4. NEW ZEALAND GOVERNMENT GRANTS FOR DISASTER RELIEF



2012 2011 2012 2011

Philippines (floods) 500 - 500 -

Pakistan (floods) - 500 - 500

Columbia (floods) - 134 - 134

Indonesia (volcanic eruption) - 200 - 200

Vietnam (floods) - 250 - 250

Sri Lanka (floods) - 100 - 100

Middle East/North African (civil unrest) - 1,000 - 1,000International Disaster Relief 500 2,184 500 2,184

Canterbury Earthquakes - 5,000 - 5,000

Total New Zealand Government Grants for Disaster Relief 500 7,184 500 7,184


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5. EXPENDITURE ON HUMANITARIAN ACTIVITIES


& Red Cross Foundation


Incorporated2012 2011 2012 2011

Personnel costs 3,160 2,562 3,160 2,562

Aid workers 1,689 1,184 1,689 1,184

International disbursements 1,258 1,203 1,258 1,203

Appeal activities 10,425 66,952 10,425 66,952

International levies 257 118 257 118

Other international projects - 80 - 80

Other expenses 1,740 2,473 1,740 2,473

Depreciation charge 347 316 347 316

Total Expenditure on Humanitarian Activities 18,876 74,888 18,876 74,888Expenditure on Humanitarian Activities comprises:

Humanitarian law 83 86 83 86

Disaster relief and development 15,565 71,232 15,565 71,232

Emergency management 393 406 393 406

Community activities 2,835 3,164 2,835 3,164

Total Expenditure on Humanitarian Activities 18,876 74,888 18,876 74,888

6. INTERNATIONAL DISBURSEMENTS




Incorporated2012 2011 2012 2011

International Federation of Red Cross and Red Crescent Societies

Afghanistan 140 100 140 100

Disaster relief supplies - 60 - 60

Timor-Leste 200 177 200 177

Pacific 107 6 107 6

Vietnam 150 95 150 95

International Committee of the Red Cross

South East Asia - 100 - 100

Pacific National Red Cross SocietiesCook Islands Red Cross 84 79 84 79

Fiji Red Cross 60 90 60 90

Kiribati Red Cross Society 40 40 40 40

Solomon Islands Red Cross Society 23 18 23 18

Tonga Red Cross Society 49 40 49 40

Tuvalu Red Cross Society 25 (15) 25 (15)

Vanuatu Red Cross Society 43 41 43 41

Other Pacific Red Cross National Society support 33 67 33 67

Pacific and other telecommunications development 296 184 296 184

Regional warehouse 8 121 8 121

Total International Disbursements 1,258 1,203 1,258 1,203



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6. INTERNATIONAL DISBURSEMENTS (CONTINUED)



2012 2011 2012 2011

International Disbursements comprises:

Health and first aid 748 547 748 547

Disaster relief and development 181 266 181 266

Emergency management 304 405 304 405

Community activities 25 (15) 25 (15)

Total Expenditure on Humanitarian Activities 1,258 1,203 1,258 1,203

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

7. SURPLUS FROM ALL ACTIVITIES



2012 2011 2012 2011Revenue

Trading act iviti es 12,063 10,652 12,063 10,652

Administration activities 3,643 3,591 2,927 3,659


Total Revenue 47,892 137,476 47,150 137,544

Expenditure

Trading act iviti es 9,309 8,634 9,309 8,634

Administration activities 6,315 6,168 6,207 6,075


Humanitarian activities 18,876 74,888 18,876 74,888Total Expenditure 38,205 92,434 38,097 92,473

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

Trading and Administration

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

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

Fundraising Activities

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


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8. RESTRICTED FUNDS




Incorporated2012 2011 2012 2011

International appeals and development 347 567 347 567

Local projects and developments - 23 - 23

Meals on Wheels activities - 64 - 64

Emergency response units/vehicles - 68 - 68

Specific purpose legacies 36 1,730 36 1,730

Total Restricted Funds 383 2,452 383 2,452

9. CHRISTCHURCH RESERVE



2012 2011 2012 2011

Opening balance 44,204 - 44,204 -

Funds received

Public donations 5,498 80,617 5,498 80,617

Interest income 1,888 230 1,888 230

New Zealand and other Governments - 11,936 - 11,936

Specific purpose donations (including other Red Cross National Society support) 11,415 14,694 11,415 14,694

Total funds received 18,801 107,477 18,801 107,477

Funds used

Resident grants 7,672 61,889 7,672 61,889

Response activities - 1,367 - 1,367

Recovery activities 1,800 17 1,800 17

Capacity building 1,137 - 1,137 -

Total funds used 10,609 63,273 10,609 63,273

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

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

All funds donated by the New Zealand public are to assist affected people and communities. This includes the provision of goods, cash grants and other support. Funds will not be used

for Red Cross administration costs, staff salaries or transport and accommodation of Red Cross staff and volunteers.Other Red Cross national societies launched appeals to raise money to support the initial response, long term recovery and strengthening disaster response capacity. All interest earned isreinvested into the Reserve. It is anticipated that due to the scale and continuing needs of the community that it may take in excess of five years to responsibly deliver aid and providerecovery services.

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

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



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10. CASH AND CASH EQUIVALENTS



2012 2011 2012 2011

Cash and bank current deposits 11,807 16,664 11,292 12,322

Bank term deposits 51,601 37,145 47,089 37,145

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

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

11. TRADE AND OTHER RECEIVABLES



2012 2011 2012 2011

Trade receivables 942 1,196 942 966

Accrued interest and dividends 374 47 273 168

Other receivables and accruals 702 743 702 791Total Trade and Other Receivables 2,018 1,986 1,917 1,925

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

12. INVESTMENTS



2012 2011 2012 2011

Investments are categorised as:

Current 3,944 6,349 5,823 7,997

Non-Current 29,586 29,792 15,612 13,755

Total Investments 33,530 36,141 21,435 21,752

Investments comprise:

Red Cross Foundation deposits - - 21,297 21,614

Short term fixed interest 3,806 6,211 - -

Long term fixed interest 16,888 17,258 - -

Long term deposits 1,366 525 - -

Equity securities 11,332 12,009 - -

Other 138 138 138 138

Total Investments 33,530 36,141 21,435 21,752

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



2012 2011 2012 2011

Red Cross Foundation Deposits

Opening deposits - - 21,614 21,695

Withdrawals during the year - - 109 1,156

Deposits during the year - - (426) (1,237)

Closing Red Cross Foundation Deposits - - 21,297 21,614

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


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13. PROPERTY, PLANT AND EQUIPMENT




Incorporated2012 2011 2012 2011

Opening net book value 23,275 21,600 23,275 21,600

Additions 2,183 1,191 2,183 1,191

Disposals (56) (82) (56) (82)

Revaluation (decrease)/increase (817) 1,604 (817) 1,604

Depreciation charge (1,143) (1,038) (1,143) (1,038)

Closing Net Book Value 23,442 23,275 23,442 23,275

Property, Plant and Equipment Comprises: Cost or ValuationAccumulatedDepreciation

Net BookValue

DepreciationCharge

Land and buildings 20,503 1,031 19,472 189

Equipment 2,902 2,168 734 270

Computer hardware 1,527 1,307 220 125

Furniture and fittings 2,127 1,074 1,053 166

Motor vehicles 4,032 2,112 1,920 393

Work in progress 43 - 43 -

Total Property, Plant and Equipment 2012 31,134 7,692 23,442 1,143

Land and buildings 21,273 844 20,429 200

Equipment 2,468 1,901 567 245

Computer hardware 1,348 1,185 163 95

Furniture and fittings 1,911 913 998 136Motor vehicles 2,978 1,860 1,118 362

Total Property, Plant and Equipment 2011 29,978 6,703 23,275 1,038

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

14. INTANGIBLE ASSETS



2012 2011 2012 2011Opening net book value 634 771 634 771

Additions 12 39 12 39

Amortisation charge (136) (176) (136) (176)

Closing Net Book Value 510 634 510 634

Intangible Assets Comprises: CostAccumulatedDepreciation

Net BookValue

AmortisationCharge

Software 1,166 656 510 136

Total Intangible Assets 2012 1,166 656 510 136

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



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15. NON-CANCELLABLE OPERATING LEASES



2012 2011 2012 2011

Less than one year 1,397 1,323 1,397 1,323

Between one and five years 1,028 2,425 1,028 2,425

More than five years - - - -Total Non-Cancellable Operating Leases 2,425 3,748 2,425 3,748

16. CAPITAL COMMITMENTS

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

17. TRADE AND OTHER PAYABLES



2012 2011 2012 2011 Trade payabl es 2,060 1,028 2,060 891

Accruals 426 539 411 539

Licenses to occupy 24 24 24 24

Total Trade and Other Payables 2,510 1,591 2,495 1,454

18. PROVISION FOR EMPLOYEE ENTITLEMENTS



2012 2011 2012 2011

Annual leave 590 570 590 570Payroll and other entitlements 229 182 229 182

Total Provision for Employee Entitlements 819 752 819 752


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19. NET ASSETS




Incorporated2012 2011 2012 2011

Loans and Receivables

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

Trade and other rece ivab les 2,018 1,986 1,917 1,925

Investments - - 21,435 21,752

Total Loans and Receivables 65,426 55,795 81,733 73,144

Fair Value through Comprehensive Income

Investments 33,530 36,141 - -

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

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

Non-financial assets 24,691 24,956 24,691 24,956

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

Amortised Cost

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

Provisions 2,958 4,048 2,958 4,048

Total Amortised Cost 5,468 5,639 5,453 5,502

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

Non-financial liabilities 413 276 413 276

Total Liabilities 5,881 5,915 5,866 5,778Net Assets 117,766 110,977 100,558 92,322

20. CONTINGENCIES

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

21. SIGNIFICANT EVENTS AFTER BALANCE DATE

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



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AUDITOR’S REPORT

Auditor’s Report

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

As a t 30 June 2012

Patron

His Excellency Lieutenant General

The Right HonourableSir Jerry Mataparae GNZM, QSO,

Governor-General of New Zealand

National Board

National President Penny Mason

National Vice-President Paul Steere

Debby Butler

Mat Darling, youth representative (appointed March 2012)

Paul Kiesanowski

Jennifer McMahon

Aaron Turne r

Steve Osborne

Alan Webb

Brie Jessen, youth representative (resigned March 2012)

Counsellors of HonourTerry Butt

Joan Cockburn, CBE, JP

Nancy Cook

Pat Gribble, QSM, JP

Lynette Jones, CNZM

Jocelyn, Lady Keith, CBE

Rt Hon Justice Sir Kenneth Keith, ONZ, KBE

Dr Ron Mackenzie, QSO

Gerald McDouall, OBE, JP

Kerry Nolan

Patricia O’Brien, QSO

Jane Smith

Sydney Smith

John Stevens

Jerry Talbot

Paul Watson

Rev Gavin Yates

Peter Young

Officials

International Humanitarian Law Consultant

Rt Hon Justice Sir Kenneth Keith, ONZ, KBE

New Zealand Red Cross Foundation Trustees

Christopher Batten (Executive Trustee)

Peter Allport

Falcon Clouston

Alan Isaac (ret ired February 2012)

Peter Martin

Belinda Stanley

Paul Steere

Mark Weaver

Steven Fyfe (appointed July 2011)

Rueben Tucker (appointed April 2012)

Paul Kiesanowski (appointed July 2011)

Management

Chief Executive, John Ware

National Retail Manager, Patrick CummingsNational Business Services Manager, Bruce Jones

International Operations and Emergencies Manager, Andrew McKie

National Fundraising Manager, Alice Montague

National Operations Manager, Wendy Potter

National Education and Training Manager, Graham Wrigley

National Marketing and Public Relations Manager Ross Cameron

National Human Resources and Volunteer Support Manager

Bruce McGregor

Bank

ASB Bank Limited

Legal Adviser

Burrowes and Company

Auditor

Deloitte

National Office

Red Cross House, 69 Molesworth Street

P O Box 12 140, Thorndon, Wellington 6144, New Zealand

Ph. 64 4 471 8250 | Fax. 64 4 471 8251www.redcross.org.nz | [email protected]


7/21/2019 j0977 Red Ar 2012 Fin Web


j0977 red ar 2012 fin web

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