annual report - arthritis new zealand · in the face of the financial realities we have changed the...

Arthritis New Zealand Annual Report 20121

ANNUAL REPORT

ARTHRITIS NEW ZEALAND

Introduction 3

OurValues 4

MessagefromtheGovernor-General 5

President’sReport 6

AYearinPictures 7

NationalGoverningBody 8

ChiefExecutive’sReport 9

Awareness 10

BytheNumbers 10

Advocacy&Research 11

Volunteers /Ambassadors 12

RegionalHighlights 13

BusinessDevelopment 14

ServiceDelivery 15

FinanceReport 16

FinancialStatements 17

IndependentAuditor’sReport 29

Acknowledgements 30

contents

Cover photo: OA Campaign image “Like glass in your joints”.

Jetstar Flying Start judge Steve Price with Rhiannon, Jacob and Dylan


introduction

Our missionTe whakapiki hauora, oranga hoki, o- te hunga e pa-ngia ana e te kaiponapona. To improve the health and well being of people who are affected by arthritis.

ArthritisNewZealandisanationalorganisationprovidingexpertadvice,guidanceandup-to-dateinformationaboutthevariousformsofarthritisandthetreatmentsthatareavailable.

ArthritisisNewZealand’sleadingcauseofdisability.Therearemorethan140differentkindsofarthritis,andthereareover530,000NewZealanderslivingwitharthritis.Researchindicatesthatpeoplewitharthritisare5%lesslikelytobeemployedthanthosewithoutarthritis,andthatthereare17,940peoplereceivingsicknessorinvalidsbenefitsasaresultofmusculo-skeletalconditions,thebulkofwhichwillbearthritis.

Arthritiscanoccurtoanyoneatanyage,asourservicesshow.ArthritisNewZealandworkswithandforpeoplefrominfantstoseniors.Therearecurrentlymorethan1,000childreninNewZealandlivingwitharthritis.

Wepredominantlyrelyonfundraisinginitiativesandcommunitysupporttocontinueprovidingourservices.

Awareness: nationalcampaignsdevelopedtoraiseawareness,increaseorganisationalprofile,continueandexpandthelinktofundraising.

Advocacy: buildpositivecasestudiesonpeoplelivingwitharthritis;continuetodevelopanadvocacyprogrammeatbothanationalandlocallevel;strengthenstrategicrelationshipstobecomealeadingvoiceforpeoplewitharthritis.

Research:buildonourresearchgrantprogrammeandlinkswithuniversitiesandresearchfunders;createlearninganddevelopmentthroughdemonstrationprojects;linkresearchresultstoawarenessandfundraisingprogrammes

Support through advice and information:continuetoprovidecontractedservicessupportedbytelephoneandgroupservices;createframeworkfordemonstrationprojectswithprioritypopulationgroups;createinnovativeapproachestoservices(e.g.webbased).


Arthritis New Zealand works in consultation with others in a way that recognises people as individuals and promotes fairness, honesty and integrity in everything we do. All of our activities will reflect the principles of, and be in accordance with, the Treaty of Waitangi.

Our Values Wearecommittedtoworkinginwaysthatdemonstrateourvaluesof

Putting People First Wedemonstrateourcommitmenttobeingpeoplecentredby:

• Acknowledgingthepersonalandsocialimpactofarthritis

• Recognisingandcelebratingsuccessandachievement

• Beingresponsivetoclient,donorandmemberneeds

• Developingourstaffandvolunteers

• Providingawelcomingworkplace.

Excellence Westrivetoachieveexcellenceby:

• Providingevidence-basedservicesandinformation

• Aimingforcontinuousimprovementinallouractions

• Buildingonourstrengthstomakethingshappen

• Sharinginformation.

Integrity Wedemonstrateintegrityby:

• Followingthroughcommitmentsinatimelyway

• Beingaccountableforallouractivities

• Beingtotallytrustworthyandhonestinallouractions

• Providingclearandconsistentinformation.

Respect Weshowrespectby:

• Acknowledgingallpeopleinaculturallyappropriateway

• Encouragingopenandhonestcommunication

• Recognisingthediversityofcontributionsfromourstakeholders.

our valuesChildren’s camp attendees with CEO Sandra Kirby and volunteer Lani Taulapapa


It is a pleasure to provide this message for the 2011/2012 Annual Report of Arthritis New Zealand Kaiponapona Aotearoa.Forthemorethan530,000NewZealandersestimatedtobelivingwitharthritistheorganisation’smessage–Arthritis:itcouldsurpriseyou–resonateswithmanypeople.Someparentsaresurprisedtofindtheiryoungchildisdiagnosedwitharthritisandsomeyoungadultsaresurprisedwhentheyfindtheyhaveanarthriticcondition.Thatgoutisaformofarthritisalsosurprisesmanypeople,especiallytoMaoriandPacificmenwhohavethehighestrateofgoutinourcommunity.Datedandinaccuratepreconceptionsaboutthisgroupofconditionsneedtobechallenged.

ArthritisNewZealandhasaproudhistoryofworkingtoimprovethelivesofthoselivingwitharthritisinourcountry.Itdoesthisthroughitsprogrammestoraiseawareness,championingtheissuesfacedbypeoplewitharthritis;supportingNewZealandresearchintoarthritisandprovidingadvice,informationandsupportforpeoplewith

arthritis,familymembersandhealthprofessionals.Thewaytheseservicesareprovidedhaschangedovertimeandthisisasignofastrongorganisation.

IwasdelightedtoaccepttheroleofPatronforArthritisNewZealandandIcommendthevaluableworkundertakenbytheorganisation.Iwishitsmembers,staffandBoardallthebestfortheyearsahead.

Kiakaha,kiamanawanui,kiaoratatoukatoa.

Lt Gen The Rt Hon Sir Jerry Mateparae, GNZM QSO Governor-General of New Zealand

Patron,ArthritisNewZealand

Kia ora, nga mihi ki a koutou.

Arthritis New Zealand Patron Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae

message from the governor-general


Alan Henwood, President Arthritis New Zealand

president’s report

Despite it being a challenging year, I believe we can look back with pride on what we have achieved. TheawarenesscampaignsinparticularshowedNewZealandthatarthritiscansurpriseyou.Peoplesawourads,calledour0800number,gothelpwhenandwheretheyneededitandwereabletoimprovetheirqualityoflife.Wemetourmissionforpeoplewhohadneverbeenincontactwithusbefore.

Weknowthatarthritiscanoccurinanyoneofanyage–asyetmostofNewZealanddoesn’tseemtosharethatview.Thetwocampaignshaveshownyoungadultslivingwitharthritisandwehavehitanervewiththegeneralpublic.WeareverygratefultoPubCharityforsupportingtheosteoarthritiscampaignandtoAbbottLaboratoriesfortheankylosingspondylitiscampaign.Withoutthesegrantswecouldnothaveruneithercampaign.

InthefaceofthefinancialrealitieswehavechangedthewayArthritisNewZealanddeliversitsservices.ItisnevereasytodobutIbelievethatithasmadeArthritisNewZealandabetterorganisation.Overthepastyeartherewerenearly10,000callstothe0800number;mostofthesepeoplewereincontactwithusforthefirsttime.Callscamefromacrossthecountryandmanyweredelightedtofindaplacewheretheirconcernsweretakenseriously.OverhalfofthepeoplewhoreceivedservicesfromourArthritisEducatorswereagedbetween15-64years.Whilethepublicperceptionmightbearthritisasanolderperson’sproblem–ourownexperiencesshowitaffectsyoungadultsaswell.

Childrenwitharthritisareaspecialgroupinourcommunity.IwasfortunatetobeabletovisitthecampheldatMatamataearlierthisyearandmeetsomeofthefamiliesthatwereenjoyingtheirweekendoffunandeducation.Theparentsweregainingmuchneededsupportfromthecampmeetingotherfamiliesinasimilarsituation.Thechildrenwerehavingaballwithgokarts,hotpoolsandactivitiesstructuredtomeettheirabilities.

IthasalsobeenmyviewthatweneedtomakesurethatourGoverningBodyisalsoachievingallthatweexpect.Itissomeyearssincewelookedatthegovernancerules.Thisreviewisnowunderwaywiththeaimofensuringwekeepthatveryimportantbalancebetweenmemberrepresentationandtheskillsrequiredtorunamulti-milliondollarorganisationeffectively.IconsidermyselffortunatetochairaBoardthathassuchavariedandvaluableskillset.MysincerethankstoallGoverningBody,committeeandRegionalLiaisonGroupmemberswhogivesowillinglyofthetime,expertiseandinsightforArthritisNewZealand.

TheeconomicchallengesthatfaceusandeveryothercharityinNewZealandshownosignsofabating.Thisyearwehaveturnedacornerandthismakesourfuturebrighter.Thereremainchallengesahead,challengesthattheorganisationiswellpositionedtomeet.

Alan Henwood

a year in pictures

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9

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national governing body

GeneralTheGoverningBodyisthelegalauthorityfortheorganisation.GoverningBodymembersarepublictrusteesrepresentingtheinterestsofthe0rganisation’smembers,volunteers,thewidercommunity,donorsandsupporters.

PurposeThepurposeoftheGoverningBodyisgovernancefocusingontheorganisation’smajorissuesoforganisationalpurpose,directionandperformance.

Responsibilities • Toprovidestrategicdirectionandleadershipforthe

wholeorganisation

• Toensuretheorganisationissoundlymanaged.

• ToworkinclosepartnershipwiththeChiefExecutivetoensuretheGoverningBody’sgoalsandobjectivesareachieved,supportingandresourcingtheChiefExecutivetocarryoutherresponsibilities

• Toappointandterminate(ifnecessary)theemploymentoftheChiefExecutive,ensuringtheorganisationemploysthebestpersonforthepositionandprovidesfairandappropriatetermsandconditionsofemployment

• Todevelopandmonitorpolicies,whichprovidedirectionandboundariesforbothitsownandtheChiefExecutive’sfunctions;and

• ToestablishGoverningBodyCommitteesorworkinggroupsasitseesfit.

InadditionRegionalRepresentativestotheGoverningBodyhaveresponsibilitiestorepresentanyconcernsmembersintheregionmayhave,toreportonactivitiesoftheregionandreportbacktotheRegionalLiaisonGroupontheactionsanddeliberationsoftheGoverningBody.

MembersAlanHenwood–President

KathieSmith–ImmediatePastPresident

PeterLarmer–VicePresident

KateAnderson

KatharineBracey

VictoriaHarris

MartinLenart

LynneMcMillan

MaureenMedley

JohnPritchard

LisaStamp

previous page

1 2012 Childrens Camp attendees. 2 Faye Bullock, AE and David Orr Whanganui Garden Amble. 3 Geraldine Brophy and Connor Mackie off to open the Kirkaldies

Xmas window. 4 Martin Harrap ‘Cooks on Wheels’ tour and friends. 5 Sue Baker and Northland volunteers. 6 ‘Pain Report’ launch – Nicholas Leach, Frances Benge

and Michael Woodhouse MP. 7 The cricket team for launch of OA Campaign. 8 Mighty River Harmony at Viva la Voice. 9 PM John Key with his signed pig for

auction. 10 South Island Stash Rehash event. 11 2012 National Golf Tournament.

George Vea, AE at Procare Health Day


Arthritis – it could surprise you. This was the theme of our two awareness campaigns over the past year. It has also been true of us an organisation.Ayearago,weembarkedonanewwayofmeetingourmission.Weputanincreasedemphasisonraisingawarenessandspeakingoutwithandforpeoplewitharthritisaswehadbeenaskedtodo.Wereshapedourentireorganisationtobemorecosteffectivebycentralisingmanyservicestothemaincentresandmakingmuchgreateruseoftelephoneservicesaswellassmallandlargergroupevents.

Wehavesurprisedourselves.Wehadplannedforanincreasedresponsefromtheawarenesscampaigns.Butwewereamazedbythesizeandimmediacyofthecalls–asanexample,inMarch2011,werespondedto200callstoour0800number,around10callsperday.InMarch2012,werespondedto1440callstothe0800number–morethan60perday.Itisarealcredittoallourstaffandvolunteersthatwewereabletomanagethislevelofcallnumbers.

Peoplewhohavecalledushavebeensurprised.Wewereabletotalktopeoplewhohadn’tknownhelpwasavailable,whotoldustheyweresurprisedtherewassomuchmoretoknowthantheirGPhadalreadyprovided.

Noteveryonelikedourcampaign.Somepeopletoldusarthritishadbeenanastysurpriseintheirlife.Andthattoocanbetrue.Itisashock,ifnotasurprise,formanypeopletogetadiagnosisofarthritisinanyform.Wearestillatthestageofsayingthereisnocureforarthritis,andthatisasurpriseifnotashocktomany.WeremaincommittedtosupportingNewZealandresearchintomanyformsofarthritis.Overthelastyear,weprovidedgrantsthatsupportedresearchongout,osteoarthritisandrheumatoidarthritis.

ArthritisNewZealandalsosupportsanumberofresearchprojectsbyassistingresearchersinaccessingandselectingresearchstudyparticipantsrightacrossthecountry.Wearealsoworkingwithrheumatologistsonprojectsincludingthebarrierstosmokingcessationinrheumatoidarthritisandthegoutstudies.

Oneofthehighlightsformanyofourmembersandsupportersthisyearhasbeentheincreasedfocusonraisingtheissuesthatfacepeoplelivingwitharthritis.Oursurveylatelastyeardrewover700responses–andfromthiswehavedevelopedissuespagesandbeenabletosharetheexperiencesofmanypeople.Theenergyfrompeoplekeentoworkontheseissuescontinuestosurpriseus.

Unfortunately,thechallengesassociatedwithraisingmoneycontinue.Weareverygratefulforthespecialprojectgrantsthathaveallowedustorunsomeoftheprogrammeslikeawarenesscampaigns,thechildren’scampandtheArthritisNewZealandconference.Ourongoingoperationalactivitiesaresupportedthrougharangeoffundraisingactivities.Thisattimesisthanklesswork.Andyetwecanbesurprisedbypeople’sgenerosity.Thankyouforeverycontributionthatallowsustotakeanothersteptowardsmeetingourmission.

Wewouldachievenothingwithoutthecommitmentandskillsofourteam.Toourstaff,ourvolunteersandespeciallytheGoverningBody,Iacknowledgeyourefforts,yourenthusiasmandyourcommitment.Thankyou.BecauseofyouthousandsofpeoplelivingwitharthritisinNewZealandarelivingabetterqualityoflife.

Kia ora koutou

Sandra Kirby

Sandra Kirby, Chief Executive Arthritis New Zealandchief executive’s report


Raising public awareness of arthritis and Arthritis New Zealand is the most important thing we do.Awarenesswasthehighestpriorityforallgroupsinourreviewofservicesandwearedelightedthatinthepastyearwehavebeenabletorespondtothisinavarietyofways.

Our“Arthritisitcouldsurpriseyou”awarenesscampaignshavebroughtnationalandinternationalrecognitionasleadingedgepublicawarenesscampaigns.Thetelevisioncommercials,websiteandassociatedpublicitywereseenbythousandsofpeople.Thecallstothe0800numberandthevisitstothewebsitewerealmostinstantaneous.Thenumbersofpeoplewhovisitourwebsiteareconsistentlyfiveormoretimeshigherthanthosewhocallus–showingtheincreasingrelianceonthewebaspeople’sfirstpointofcontact.

Wecontinuetodelivermediareleasesandreports–andthesearebeingpickedup.Addingapersonalexperiencetothesereportsmakesthemmoreimpactful.Thankyou

tothosepeoplewhohavefreelysharedtheirlivingwitharthritisexperiencesinthisway.Aswellasrespondingtoissuesastheyariseinthemediawehavepromotedstoriesonlivingwithpain,thevalueofexercise,childrenwitharthritisanduseddayssuchasWorldLupusDaytopromotethe“anyoneatanyage”message.

OurconferenceinMaywasalsoagreatopportunitytopromoteourwork,theNewZealandresearchandbestpracticeoptionsavailable.Ourfirstexperienceofprovidingthisasopenconferencehasreinforcedthevaluableexperiencesuchaconferencebringsforallassociatedwitharthritis.

awareness

by the numbers

In this financial year we had:5,603 Members

22,063Clients

9,999callsto0800663463

79,848websitehits

18,663attendancesatlandorwaterbasedexerciseclasses

2Awarenesscampaigns

39ArthritisNewZealandstaffmembers

32,000copiesofThe Juicecirculated

80ArthritisChildren’sCampattendees

Over3000volunteerssupportingourwork


One of the results of the 2011 service review was strong agreement that advocacy should become a priority for Arthritis New Zealand. Webeganbysurveyingourmembers,clientsandvolunteersandfromthissurveythefollowingadvocacyprioritieswereestablished:

• Improvingaccesstonewmedicationsandrheumatologyservices.

• Monitoringchangestosicknessandinvalidsbenefitstoensurethosewitharthritisarenotdisadvantagedbychangestowelfarebenefits.

• Providingsupportforthosewhoarenewlydiagnosed.

• Challengingthemyththatarthritisaffectsonlytheelderly.

• Identifyinglocalcommunityissuesofimportancetothosewitharthritisandtakingappropriateaction.

WearedevelopinganetworkofArthritisAdvocatesaroundNewZealandasresourcepeoplewhocanhelpusgivevoicetotheexperienceoflivingwitharthritisandidentifylocalissuesandconcernsintheircommunities.Weprovidetrainingandongoingsupportforthoseinterestedinbecomingadvocates.

Wehavealsoaddedanissuessectiontoourwebsitetoprovidebackgroundinformationonourprioritiesandrunregularsurveystohelpusshapeouradvocacystrategy.

Makingsubmissionsanddevelopingjointventureswithotheragenciesareanotherimportantcomponentofouradvocacyworkandwecarefullymonitormediatoidentifyadvocacyopportunities.

advocacy Wellington Advocacy Workshop participants

research

Arthritis New Zealand approved three applications for research grants, which totaled $149,138. Thesuccessfulapplicantsincluded:pre-clinicalmulti-spectralimagingofcartilageandboneforearlydetectionofosteoarthritis,smokingcessationinrheumatoidarthritisandalongitudinalobservationalstudyofclinicaloutcomesingout.Wealsosupportedyoungresearchersbyawardingthreesummerscholarshipprojects.

ArthritisNewZealandisparticipatinginotherresearchprojectsbyassistingresearchersinaccessingandselectingresearchstudyparticipantsfromacrossthecountry.WearedelightedtobesupportersofthevariedresearchworkaroundthecountryandcommendthedevelopmentoftheArthritisResearchThemefortheUniversityofOtago.


volunteers/ambassadors

VolunteersArthritisvolunteersthroughoutNewZealandaretheback-boneofourorganisation.

Theirwillingnesstodonatetheirtimeinavarietyofwaysensuresthatmanyofoursupportprogrammescancontinue.Theextensiveandsoughtafterhydrotherapyandlandbasedexerciseclassesarereliantonvolunteersupport.

Tasksundertakenrangefrom;administrationsupport,fundraising,hydrotherapy/exercise,socialsupportgroups,toenailcuttingandArthritisEducatorsupport.

Itisimpossibleforustomeasurethethousandsofhoursdonated.Thankyouall!

Awards NorthernRegional Outstanding Service Award: PennieEvans–Hamilton.

Regional Community Service Awards:DotPalmerandUllaCarroll–Whangarei;ChreeBarker–Auckland.

Midland/Central The Taranaki Education Scholarship: JamesYoungwhoisinhisfourthyearofstudyatMasseyUniversity.

SouthernRegional Outstanding Service Award: ClareRichards–Canterbury.

Regional Community Service Awards:CynthiaScrivener,CarolAngland,JoanHarneiss–SouthCanterbury;

GeorgeBarker,LindsayBowron,AnnettaHodges,MaureenMcKain–Nelson;

JoyceFindlater–Marlborough;

AdrienneCrowe,RowenaHart,WendyHocking,BarbaraWatson,LorraineWest–Canterbury.

Ambassadors WehavebeendelightedwiththosewhohavegenerouslyagreedtojoinourAmbassadorsprogramme.Byallowingustousetheirnamesandpersonalstoriesandtheknowledgethatarthritiscanaffectanyoneatanyageisbecomingmoreobvious.OurAmbassadorsare:BillyBowden,GeraldineBrophy,JaynieHudgell,SteveJoll,MattLockwood,JamesLowe,MaryJaneO’Reilly,NeemiaTialata,MarkTreffers,MahéDrysdale,AnnaMortlockandAntonOliver.

NZ’s gold medal winner Mahé Drysdale proves – you don’t need to let arthritis hold you back.


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Southern Region• Hydrotherapyand/orwater-basedexerciseclasses

continuinginInvercargill,ChristchurchandNelsonandland-basedexerciseclassescontinuinginChristchurch,PictonandNelson.

• SocialgroupscontinuinginInvercargill,Timaru,Christchurch,HokitikaandBlenheim.

• PeerSupportnetworksestablishedinOamaruandChristchurch.

• RegularvisitingschedulesimplementedtoSouthland,NorthOtago,WestCoastandMarlborough.

• RenegotiatedcontractwithCanterburyandSouthCanterburyDHBstodeliverservicesintheseregions.

• NewcontractnegotiatedwithWellDunedinTrusttodeliverLHLcourses,seminarsandgouthuiinDunedin.

Midland/Central Region • Asuccessfulseriesofwellattendedseminars

throughoutthegreaterWellingtonareainvolvingspecialistsintheareasofpain,orthopaedicsandphysiotherapy.

• JoiningforceswithlocalgroupsinHawke’sBayandGisbornetodeliverservicesinnewways.

• ContinuingtogrowourgouteducationworkwithMa-oriandPasifikaaroundtheregion.

• InitiatinggroupclinicsintheCapital&CoastDistrictHealthBoardarea.

• TheLivingaHealthyLifeProgramme,remainspopularandhasgeneratedagrowingwaitinglistpartsoftheregion.DevelopingthreeselfmanagementmodulestobepilotedinRotorua.

• Arangeofhydrotherapy,landandwaterbasedexercisegroupsarerunningthroughouttheregion.

Northern RegionThepastyearhasseenanumberofexcitinginitiatives

• Anincreaseinthenumberofclientsforbothclinicsandgroupevents.

• ContinuinghighnumbersofMa-oriandPasifikaclientsaccessingservices.

• ThedevelopmentofaverysuccessfulpartnershipwithAUTtocreateapopularseriesofseminars.

• AsuccessfulgouteducationpilotprogrammecompletedwithManaiaPHO,inWhangareileadingtoanexpandedcontractwiththePHO.

• ThedevelopmentofaGoutChampionstrainingprogrammewhichhasledtoacontractwithProCaretorunthisprogrammeinAucklandCentral.

• TheinitiationofanewseriesofworkshopsonPainManagementinWaikato.

• TheestablishmentofthepositionofRegionalCo-ordinatorhasprovidedresourcetosupportvolunteersandsupportgroupsintheregionandnewsupportgroupshavebeenformedinKerikeriandWarkworth.

regional highlights


“Mountains are conquered with small up hill steps”WithinourDonorMailprogrammewesharethepositivestoriesofthosewitharthritisandhowtheydealwiththedailychallenges.Thereisneverany‘poorme’fromthembuttheamazingtalesofdaytodaytasksandsolutionstocoping.Formanyofthe530,000NewZealanderstheirpainandjointdamageisinvisible.Thedailymedicationsandinjectionsgounseenandthechildrenrunandskip,forsomeoftheday,liketheirpeers.

AsArthritisNewZealandfundraisersweonlyhavewordstoconveyapictureofwhyweneedfinancialsupport.Storiesarevitalaswetrytopaintapicture.

OurDonorMailprogrammeendeavourstotellstoriesofdifferentagesandlifestylesandwearegratefultothemanydonorswhosupportusinthisprogramme.

TrustsandFoundationsformanimportantincomestreamandwearecognisantofthegrowingdemandsonthemandtheimpactoffallinginterestrates.TotheTrustswhoarewillingtoenterintodialoguewithustoensuretheircriteriaandoursmatch,thankyou!WehavewatchedwithsomeconcerntheprogressoftheGamblingHarmReductionBillthroughParliament.OurmostrecentawarenesscampaigntouchedthelivesofmoreNewZealandersthanever,wasonlypossiblewiththesupportofaGamingTrust.Werelyheavilyonthissupporttoensureourservicesareavailablenationally.

Therearemanywhomayhavehadarthritisduringtheirlifetime,orjustwatchedourworkfromafarandthenleaveusthatamazingfinalgiftofabequest.Theopportunitytothankthempersonallyisnotavailable,buttotheirfamiliesandfriendsourgratitudeforthesewonderfulgiftsismostsincere.

RaisingawarenessisaprimarygoalandwiththecommitmentfromPubCharityIncwewereabletocreateandrunatelevisioncampaignonosteoarthritis.Thishadamazingimpact.Subsequently,AbbottLaboratoriessupportedthere-runoftheankylosingspondylitiscampaignandwithPfizertheir‘PainReport’waslaunched.

MichaelWoodhouse,MPhascontinuedtoleadthecrosspartysupportofpoliticianswhobelongtotheParliamentaryFriendsofArthritis.

OurJuiceandJointSupportmagazineshavecontinuedtoprovidestoriesandadviceonnewandemergingtrendsinarthritiscareandweenjoythefeedbackfrommembersanddonorstothesepublications.

Theeconomicclimateremainschallengingforcharities.Recruitingvolunteerstosupportourappealiscriticalandweareindebtedtothosewhohavesupportedallourprogrammes.

Togainthosecorporatesponsorsweneedtoensurethatarthritisis‘visible’andworthyoftheirsupport.

Weareindebtedtothosethousandsofdonors,trusts,corporatesponsorsandthoseraisingmoneyforusbyhavingfun.Withoutyou,thechallengesbecomeveryhighmountains.

Dianne Armstrong

business development report Business Development Manager Dianne Armstrong


Service Development Manager Natalia Valentino

Natalia Valentino

In 2011 we introduced a new model of services and have spent the past year implementing and refining this to ensure we are able to provide information and education to an increasing number of people with arthritis within a more cost effective structure. New services were introduced including an expanded 0800 helpline, phone clinics, group clinics and workshops.

Bytakinggreateradvantageofthephoneandinternetforindividualclientservicesweareabletoprovideinformationandsupporttopeopleingeographicallyremoteareas.Linkingpeoplediagnosedwitharthritisbywayofaphonebuddysystemandsocialnetworkingisincreasinglypopularalongsideourtraditionalsupportgroups.

InthepastyearwedeliveredArthritisEducatorservicestoover29,000clients.4,783peoplereceivedinformationandadviceatourindividualclinics;10,956peopleattendedseminars,workshops,self-managementandtrainthetrainerprogrammesandgouthui.Afurther5,021peoplewereprovidedwithbriefinformationandsupportbytelephone,athealthexposandotherevents.199,122informationandeducationresourcesweredistributed.

Gouteducationisoneofthekeyareasofourservicesandwedeliveredclinicsandhuiforpeoplewithgoutandtheirwhanau/familiesfocusingonMa- oriandPasifikacommunities.

WealsopilotedanewwayofdeliveringservicesbydevelopingapartnershipwithNelsonBaysPrimaryHealthwhichwasshowntobeavaluableserviceforbothclientsandthehealthprofessionalsatthePHO.

Thefirst‘openpublicday’forpeoplewitharthritisandtheirfamilieswasheldduringtheNationalConferenceinMay.PartnershipswithPhysiotherapyNewZealand,AucklandUniversityofTechnology,theUniversityofAucklandandUniversityofOtagoareimportantfordevelopingresourcesandpromotingamulti-disciplinaryapproachinmanagementofarthritisandthelatestresearch.

WeappreciatethegenerosityofmanyNewZealanders,supportfromDistrictHealthBoards,PrimaryHealthcareOrganisationsandoursponsors–togetherwedomakeadifferenceinhelpingpeoplewitharthritis.

service delivery


finance report

The benefits of the 2011 restructure are being reflected in the positive result for 2012!Fortheyearended30June2012,ArthritisNewZealandrecordedanetsurplusof$25,500comparedwithadeficitof$386,000inthepreviousyear.

ThegeneraleconomicenvironmentcoupledwiththefalloutfromtheCanterburyearthquakescontinuestohaveaneffectonArthritisNewZealand’sabilitytogeneraterevenue.

Operatingrevenuewasslightlydownonthepreviousyearandwasbuoyedbyacoupleofverygenerousgrantsspecificallydesignatedfortheawarenesscampaignsrunduringthefinancial.

Operatingexpenses,whichincludedthecostsofthespecifically-fundedawarenesscampaigns,werealsolowerthaninthepreviousyear,reflectingthebenefitsoftherestructureundertakenduringthe4thquarterof2010/11.

Thesmallsurplusfortheyearcombinedwithanincreaseinrevenueinadvanceandtheproceedsfromthesaleofproperty,contributedtoanetcashinflowof$525,000.Wecontinuetofocusattentionontheneedtofindnewsourcesofregularincometomeettherisingcostsofdeliveringthequalityservicesweaspireto.

Thenetassetpositionhaschangedonlyslightlyandwecontinuetoholdsufficientreservestoseeusthroughthisprolongedperiodofeconomicuncertainty.

ArthritisNewZealandremainswell-positionedtofacethechallengesofthenextfewyearsaswefocusonthestrategicprioritiesfortheorganisation.

Corporate Services Manager Rob Mitchell

Income SourcesTotal–$4,847,000 Total–$4,813,000

Operating Expenditure

Bequests

Donations, Appeals & Fundraising

Services & Programmes

Programme Support

Sponsorships & Grants

Fundraising Costs

DHB Funding Research Grants

Other Income Depreciation

Member Subscriptions

Governance & AuditInvestment Income

29%

49%

23%17% 26%

19%

3%2%

2% 1%

9%6%

14%

Rob Mitchell

FortheYearended30June2012

StatementofFinancialPosition 18

StatementofComprehensiveIncome 19

StatementofChangesinEquity 20

StatementofCashFlows 21

NotestotheFinancialStatements 22

IndependentAuditor’sReport 29

financial statements 2012

ArthritisNewZealandAnnualReport201217

financial statements 2012

FINANCIAL STATEMENTS

18Arthritis New Zealand Annual Report 2012

Statement of Financial Position

As at 30 June 2012 in New Zealand Dollars

Note 2012 2011

Assets

Property,furnitureandequipment 5 731,355 950,662

Investments 6 3,133,738 3,284,308

Total non-current assets 3,865,093 4,234,970

Tradeandotherreceivables 7 303,237 152,867

Cashandcashequivalents 8 1,651,538 1,125,985

Total current assets 1,954,775 1,278,852

Total assets 5,819,868 5,513,822

Equity

Funds 4,099,408 4,073,905

Reserves 583,908 687,483

Total equity 9 4,683,316 4,761,388

Liabilities

ManagedFunds 8 178,987 181,915

Employeebenefits 10 1,682 1,960

Total non-current liabilities 180,669 183,875

Tradeandotherpayables 11 290,152 207,349

RevenueinAdvance 12 493,293 203,740

Employeebenefits 10 172,438 157,470

Total current liabilities 955,883 568,559

Total liabilities 1,136,552 752,434

Total equity and liabilities 5,819,868 5,513,822

AuthorisedforissueforandonbehalfoftheGoverningBody

ChiefExecutive: President:

Date:17September2012

The accompanying notes on pages 22 to 28 form part of and should be read in conjunction with these financial statements.



Statement of Comprehensive Income

For the year ended 30 June 2012 in New Zealand Dollars

Note 2012 2011

Revenue

ContributionsfromtheCommunity 13 3,349,307 4,122,873

IncomefromServices&Programmes 14 847,766 811,116

MembersSubscriptions 106,528 124,857

Profit/(loss)onDisposalofFixedAssets 258,818 (15,938)

Total operating income 4,562,419 5,042,908

Expenditure

FundraisingExpenses 13 912,214 1,159,880

ExpenditureonServices&Programmes 14 2,370,242 2,327,800

AdministrationExpenses 15 1,243,294 1,661,423

GovernanceCosts 41,462 52,383

ResearchGrantsAwarded 166,639 353,486

Depreciation 5 78,862 109,158

Total operating expenses 4,812,713 5,664,130

Operating (deficit) before finance income (250,294) (621,222)

Netfinanceincome 16 285,120 249,015

Operating surplus/(deficit) after finance income 34,826 (372,207)

Impairmentofinvestments 17 (9,323) (14,406)

Surplus/(Deficit) for the year 18 25,503 (386,613)

Other Comprehensive Income

Netchangeinfairvalueofinvestments (103,575) 227,910

Total Comprehensive Income for the year (78,072) (158,703)




Statement of Changes in EquityFor the year ended 30 June 2012 in New Zealand Dollars

NoteResearch

FundsGeneral Funds

Special Purpose

Funds

Investment Fair Value Reserve

Total equity

Balanceat1July2010 2,619,890 1,503,064 337,564 459,573 4,920,091

Total Comprehensive Income for the period

Totalrecognisedincome&expense (228,329) (158,284) - - (386,613)


Netchangeinfairvalueofinvestments 227,910 227,910

TransactionsrecordeddirectlyinEquity

Transfersbetweenfunds - (17,255) 17,255 - -

Balance at 30 June 2011 2,391,561 1,327,525 354,819 687,483 4,761,388

Balanceat1July2011 2,391,561 1,327,525 354,819 687,483 4,761,388

Total Comprehensive Income for the period

Totalrecognisedincome&expense 12,198 13,305 - - 25,503


Netchangeinfairvalueofinvestments (103,575) (103,575)

Transactions recorded directly in Equity

Transfersbetweenfunds - (16,741) 16,741 - -

Balance at 30 June 2012 9 2,403,759 1,324,089 371,560 583,908 4,683,316




Statement of Cash FlowsFor the year ended 30 June 2012 in New Zealand Dollars

Note 2012 2011

Cash Flows from Operating Activities

Cash was provided from:

Contributionsfromthecommunity 3,630,615 3,601,934

IncomefromServices&Programmes 697,395 887,280

MembersSubscriptions 114,775 94,976

4,442,785 4,584,190

Cash was applied to:

Paymentstosuppliers 2,191,240 2,817,655

Paymentstoemployees&volunteers 2,305,697 3,030,035

ResearchGrantspaid 142,350 353,486

4,639,287 6,201,176

Net Cash (Outflow) from Operating Activities 18 (196,502) (1,616,986)

Cash Flows from Investing Activities

Cash was provided from:

SaleofProperty,furniture&equipment 446,801 1,461

Interest&Dividendsreceived 246,888 256,248

SaleofInvestments 485,417 37,285

1,179,106 294,994

Cash was applied to:

Purchaseofproperty,plantandequipment 47,538 21,352

PurchaseofInvestments 409,513 37,123

457,051 58,475

Net Cash Inflow from Investing Activities 722,055 236,519

Net Increase/(Decrease) in cash and cash equivalents 525,553 (1,380,467)

Cash and cash equivalents at 1 July 1,125,985 2,516,164

Effectofexchangeratefluctuationsoncashheld - (9,712)

Cash and cash equivalents at 30 June 8 1,651,538 1,125,985


NOTES TO THE FINANCIAL STATEMENTS


Notes to the financial statements1. Reporting entityTheArthritisFoundationofNewZealandInc(theFoundation)isregisteredundertheIncorporatedSocietiesAct1908&theCharitiesAct2005andisdomiciledinNewZealand.ItoperatesunderthenameArthritisNewZealand.

TheprincipalactivityoftheFoundationistoraiseawarenessandprovideadvocacy,information,education,andsupportservicesforpeopleaffectedbyarthritis.

ThefinancialstatementsoftheFoundationarefortheyearended30June2012.ThefinancialstatementswereauthorisedforissuebytheGoverningBodyon17thSeptember2012.

2. Basis of preparationStatement of compliance and basis of preparationThefinancialstatementshavebeenpreparedinaccordancewithGenerallyAcceptedAccountingPracticeinNewZealand(NZGAAP).TheycomplywithNewZealandequivalentstoInternationalFinancialReportingStandards(NZIFRS).TheFoundationhasappliedtheFrameworkforDifferentialReportingforentitiesadoptingNZIFRSanditsinterpretations.

TheFoundationisapublicbenefitentity,asdefinedunderNZIAS1.

TheFoundationqualifiesfordifferentialreportingexemptionsasithasnopublicaccountabilityandtheFoundationissmallintermsofthesizecriteriaspecifiedinFrameworkforDifferentialReporting.AllavailablereportingexemptionsallowedundertheFrameworkforDifferentialReportinghavebeenadopted,exceptforNZIAS7,StatementofCashFlows.

Basis of measurementThefinancialstatementsarepreparedonthehistoricalcostbasis,exceptforfinancialinstrumentsthatareclassifiedasavailable-for-salewhicharestatedattheirfairvalue.

Presentation currencyThesefinancialstatementsarepresentedinNewZealanddollars($).

3. Significant accounting policiesTheaccountingpoliciessetoutbelowhavebeenappliedconsistentlytoallperiodspresentedinthesefinancialstatements.

RevenueGRANT FUNDING

TheFoundation’sactivitiesaresupportedbygrants,sponsorshipanddonations.Grantsreceivedthataresubjecttoconditionsareinitiallyrecognisedasaliabilityand

revenueisrecognisedonlywhentheservicesareperformedorconditionsarefulfilled.

BEQUESTS

Revenuefrombequestsisrecognisedwhenthebequestfundsarereceived.Whereabequestisgivenwithspecifiedconditions,thefundsreceivedareplacedinanappropriatereservefundandappliedtoexpenditurethatmeetsthespecifiedconditions.

SERVICES PROVIDED

Revenuefromservicesrenderedisrecognisedinprofitorlossastheservicesareprovided.

MEMBERS SUBSCRIPTIONS

MembersSubscriptionsarerecognisedinthemembershipperiodtowhichtheyrelate.

CASH CONTRIBUTIONS FROM THE COMMUNITY

CashcontributionsfromthecommunityintheformofgeneraldonationsandappealsarerecognisedintheStatementofComprehensiveIncomeatthepointatwhichtheyarereceiptedintotheFoundation’sbankaccount.

ExpensesOPERATING LEASE PAYMENTS

PaymentsmadeunderoperatingleasesarerecognisedintheStatementofComprehensiveIncomeonastraight-linebasisoverthetermofthelease.LeaseincentivesreceivedarerecognisedintheStatementofComprehensiveIncomeovertheleasetermasanintegralpartofthetotalleaseexpense.

Finance IncomeFinanceincomecomprisesdividendandinterestincome.Interestincomeisrecognisedasitaccrues,usingtheeffectiveinterestmethod.

Income taxTheFoundationisregisteredasaCharitableFoundationandisexemptfromIncomeTax.TheFoundationisnotexemptfromindirecttaxlegislationsuchasGoodsandServicesTax,FringeBenefitTax,PAYEorACCandaccordinglyitisrequiredtocomplywiththeseregulations.

Goods and Services TaxAllamountsareshownexclusiveofGoodsandServicesTax(GST),exceptforreceivablesandpayablesthatarestatedinclusiveofGST.

InvestmentsSHARES, BONDS AND CAPITAL NOTES

TheFoundation’sinvestmentsinshares,bonds&capitalnotesareclassifiedasavailable-for-salefinancialassets.Subsequenttoinitialrecognition,theyaremeasuredatfairvaluewhichisbasedonlistedmarketinformation.Thefair



valueofthesharesistheirquotedbidpriceattheendofthereportingperiod.

Changesinfairvalue,otherthanimpairmentlosses,arerecognisedwithinreservesinequity.Anequityinvestmentisconsideredimpairedwhenitsfairvaluehasdecreasedbymorethan20%ofitscarryingvalueoritsfairvaluehasbeenbelowitscostforaprolongedperiodexceeding9months.SuchlossisrecordedintheStatementofComprehensiveIncome.Whenaninvestmentissold,thecumulativegainorlosspreviouslyrecognisedinequityistransferredtoprofitorloss.

TERM DEPOSITS

TheFoundation’sinvestmentsintermdepositsareclassifiedasheld-to-maturityinvestments.TheyaremeasuredatamortisedcostanditistheFoundation’spolicytoholdtheseinvestmentsuntilmaturitydate.

Property, furniture and equipmentItemsofproperty,furnitureandequipmentarestatedatcost,lessaccumulateddepreciationandimpairmentlosses.DepreciationischargedtotheStatementofComprehensiveIncomeusingthestraightlinemethod.Depreciationissetatratesthatwillwriteoffthecostorfairvalueoftheassets,lesstheirestimatedresidualvalues,overtheirusefullives.Theresidualvalueofassetsisreassessedannually.

Cash and cash equivalentsCashandcashequivalentscomprisecashbalances,foreigncurrencycallaccountsandshort-termdepositsmaturingwithinnext12months.

ImpairmentThecarryingamountsoftheFoundation’sassetsarereviewedattheendofeachreportingperiodtodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theassetsrecoverableamountisestimated.

Animpairmentlossisrecognisedwheneverthecarryingamountofanassetexceedsitsrecoverableamount.ImpairmentlossesdirectlyreducethecarryingamountofassetsandarerecognisedintheStatementofComprehensiveIncome.

Estimatedrecoverableamountofotherassets,e.g.property,furnitureandequipment,isthegreateroftheirfairvaluelesscoststosellandvalueinuse.Valueinuseisdeterminedbyestimatingfuturecashflowsfromtheuseandultimatedisposaloftheassetanddiscountingthesetotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketratesandtherisksspecifictotheasset.TheassetsoftheFoundationareusedinprovidingtheFoundationservicesandarethereforeconsideredforimpairmentontheoverallperformanceoftheFoundation.

Employee benefitsLONG SERVICE LEAVE

TheFoundation’snetobligationinrespectoflongserviceleaveistheamountoffuturebenefitthatemployeeshaveearnedinreturnfortheirserviceinthecurrentandpriorperiods.Theobligationiscalculatedusingtheemployees’currentsalaryandaprobabilityfactorrelatedtothenumberofyearsuntilthedateoftheemployees’eligibilityforlongserviceleave.

ProvisionsAprovisionisrecognisedwhentheFoundationhasapresentlegalorconstructiveobligationasaresultofapastevent,anditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation.Iftheeffectismaterial,provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsatapre-taxdiscountratethatreflectscurrentmarketratesand,whereappropriate,therisksspecifictotheliability.

New standards issued but not yet effectiveTheFoundationhaselectednottoearlyadoptthenewstandardsandamendmentsthathavebeenpublishedbutarenotyeteffective.ThesenewstandardsarenotconsideredtohaveamaterialimpactontheFoundation.

4. Financial risk management TheFoundationissubjecttomarketrisk(includingcurrencyriskandpricerisk),creditrisk,cashflowinterestrateriskandliquidityrisk.TheFoundationdoesnothaveanyderivatives.

Market riskTheFoundationinvestsincashinbankaccounts,fixedinterestinvestmentsandequities.InvestmentsareconstantlymonitoredbyTheFoundation.TherehasbeennochangetoTheFoundation’sexposuretomarketrisksorthemannerinwhichitmanagesandmeasurestherisk.

Foreign currency risk TheFoundationisindirectlyexposedtocurrencyriskonitsAustralianinvestments.TheGoverningBodydoesnotconsiderthistobeasignificantfinancialriskfortheFoundationandaccordingly,nosensitivityanalysisisprovided.TheFoundationhasnootherexposuretoforeigncurrencyrisk.

Price Risk TheFoundationhasmoderateexposuretopriceriskthroughitsinvestmentsinNewZealandandAustralianequities.Thisriskismanagedbyholdingadiversifiedportfolioacrossabroadrangeofcompanies.TheFoundationhasnootherexposuretopricerisk.A10%changeinpricewillincrease/decreasethevalueofinvestmentsheldatreportingdateby$211,926(2011:$178,765)withcorrespondingincrease/decreaseinthereserves.



Interest rate riskTheFoundationhasminimalexposuretointerestrateriskonfinancialliabilitiesasitdoesnothaveborrowingswhicharesubjecttointerestcharge.Thesensitivitybelowhasbeendeterminedbasedontheexposuretointerestratesonthebookvalueofinterest-bearingfinancialinstrumentsatthereportingdateandthestipulatedchangetakingplaceatthebeginningofthefinancialyearandheldconstantthroughoutthereportingperiod.A50basispointincreaseordecreaseininterestrateisused.Atreportingdate,ifinterestratehadbeen50basispointshigherorlowerandallothervariablesheldconstant,thesurpluswouldincrease/decreaseby$13,330(2011:$13,113).

Credit Risk CreditriskistheriskthatthecounterpartytoatransactionwiththeFoundationwillfailtodischargeitsobligations,causingTheFoundationtoincurafinancialloss.

FinancialInstruments,whichpotentiallysubjecttheFoundationtocreditrisk,consistprincipallyofbankbalances,tradeandotherreceivables,bondsandcapital

notes.ThecarryingamountsoftheseitemsreflectedintheStatementofFinancialPositionrepresenttheFoundation’smaximumexposuretocreditriskforsuchloansandreceivables.TheFoundationdoesnothaveanyguarantees.TheFoundationcontinuouslymonitorsitsexposuretocreditrisk.

Liquidity RiskLiquidityriskistheriskthattheFoundationwillhaveinsufficientfundsonhandtomeetitscommitments.TheFoundationactivelymonitorsitsliquiditypositiontoensurethatsufficientfundsareavailabletomeetitsliabilitiesastheyarise.

TheFoundationdeemsthatexposuretoliquidityriskisminimalduetominimallongtermliabilities.Shorttermliquidityriskismanagedthroughmaintainingadequatereservesandcashtomatchfinancialliabilities.TheFoundationcontinuouslymonitorsforecastandactualcashflowsandmatchesthematurityprofilesoffinancialassetsandobligations.

5. Property, Furniture & Equipment

Furniture & Equipment Land & Buildings TotalBalance at 30 June 2012Cost 709,655 650,000 1,359,655Accumulateddepreciation 525,925 102,375 628,300

Carryingvalue 183,730 547,625 731,355

Currentyeardepreciation 53,488 25,374 78,862

Balance at 30 June 2011Cost 678,213 911,086 1,589,299Accumulateddepreciation 487,120 151,517 638,637

Carryingvalue 191,093 759,569 950,662Currentyeardepreciation 80,846 28,312 109,158

Theestimatedusefullivesofmajorclassesofassetsandresultingratesofdepreciationareasfollows:• Officefurniture&Equipment10-30%SL• Buildings3%SL

6. Investments

2012 2011 General fundsShares 423,292 442,873

Bonds 412,981 638,657CapitalNotes 21,800 21,600

858,073 1,103,130

Research fundsShares 1,695,974 1,344,781

Bonds 542,684 799,703CapitalNotes 37,007 36,693

2,275,665 2,181,178Total Investments 3,133,738 3,284,308



TheFoundationholdsinvestmentsinlistedNewZealandandAustraliancompanies.Theseinvestmentsareheldasavailable-for-saleinvestmentswhichmeansthattheyarerecordedatfairvaluewhichisthemarketpriceatbalancedate.TheseinvestmentsareconsideredtobeLevelOnein

thefairvaluehierarchy,wherebymarketpricesarereadilyavailable.TheFoundationholdslistedbondsandcapitalnotesreturningbetween3.3%and8.3%perannum(2011:3.1%and8.9%).Thebondsandcapitalnotesarevaluedatfairvalue,whichisthemarketvalueatbalancedate.

7. Trade and other receivables

2012 2011

Accountsreceivable 245,197 101,440

Prepayments 29,042 15,831

Sundryreceivables 25,582 29,645

GSTreceivable 3,416 5,951

303,237 152,867

8. Cash and cash equivalents

2012 2011

Bankbalances 35,795 37,274

Short-termdeposits 1,615,743 1,088,711

1,651,538 1,125,985

Cashandcashequivalentscomprisecashbalancesandshort-termdepositsmaturingwithinnext12months.

TheFoundationmanagesfundsonbehalfoftheWellingtonRheumatologyTrustBoard.Thesefundsareheldintrust

andappliedtopaymentofexpensesasauthorisedbythetrusteesoftheWellingtonRheumatologyTrustBoardfromtime-to-time.TheManagedFundsliabilityof$178,987(2011:$181,915)isequivalenttotheamountofcashnotavailableforgeneralusebytheFoundation.

9. EquityResearch FundThisFundcomprisestheNationalandAucklandGeneralResearchFundsandtheWellingtonOsteoporosisResearchFundandismaintainedtoensureacontinuingsourceoffinancialcontributiontowardthecostofgrantsprovidedbytheFoundationforquantitativeandqualitativeresearchstudiesinthefieldofarthritis.TheFundreceivescontributionsfromspecifiedbequests,donationsandincomeearnedonthecapitalsuminvested.GrantsfromtheFundareconsideredbytheGoverningBodyeachyearfollowinganadvertising,reviewandrecommendationprocesscompletedbyaResearchGrantsCommittee.

General FundThisFundcomprisestheaccumulatednetsurplusesoftheFoundationthathavenotbeenrestrictedbydonorsordesignatedbytheGoverningBodyforspecifiedpurposes.Itprovides:

• WorkingcapitalfortheFoundation’soperations

• AsourceofincometocontributetofinancingtheworkoftheFoundation

• Assuranceoffinancialstabilitytocompletemajorprojects

Special Purpose Funds• Irwin Isdale Memorial Fund–ThisFundcommemorates

theworkofthelateDr.IrwinIsdaleinthefieldofrheumatologybyprovidingsupportforrheumatologytraineestohelpthemattendRheumatologyconferencesandmeetingsinAustraliaandNewZealand.

• Whitwell Fund–Thisfundoriginatedin1983fromabequestfromtheEstateofMrs.WhitwellandisheldforthepurposeoftheFoundation’sservicesintheCanterbury/Westlandarea.

• Pierce Bequest Fund–ThisfundwasestablishedfromabequestfromtheEstateofMr.A.G.PierceandisheldforthepurposeoftheFoundation’sservicesinthePutaruruarea.

• Taranaki Youth Scholarship Fund–ThisFundwasestablishedbythepreviousTaranakiDivisiontoassistyoungarthritissufferersfromTaranakiwiththeireducation.

• Wellington Education Fund–ThisFundwasestablishedbythepreviousWellingtonDivisiontoassistyoungarthritissufferersfromtheWellingtonregionwiththeireducation.



10. Employee Benefits 2012 2011

CurrentPayrollaccruals 84,970 73,702Liabilityforholidaypay 87,468 83,768

172,438 157,470Non-currentLiabilityforlong-serviceleave 1,682 1,960

174,120 159,430

11. Trade and other payables2012 2011

Tradepayables 224,367 138,204Non-tradepayablesandaccruedexpenses 65,785 69,145

290,152 207,349

12. Revenue in Advance2012 2011

GrantsfromtheCommunity 445,568 19,000GrantsfromNewZealandLotteryGrantsBoard - 149,262GrantsfromotherGovernmentAgencies 5,000 1,000MembershipSubscriptions 42,725 34,478

493,293 203,740

RevenueinAdvanceincludesgrantsawardedforspecificpurposes.Duetoconditionsofthesegrantsbeingunfulfilledat30June2012,inthattheexpenditureisyettobeincurred,theamountisrecordedasrevenueinadvanceat30June2012.

13. Contributions from the Community2012 2011

RevenueDonations,appeals&fundraising 1,115,384 1,228,392

Generalpurposebequests 809,718 1,415,994

SpecialPurposeBequests-Research - 1,546

SpecialPurposeGrants–PublicAwarenessCampaigns 703,059 39,875

GrantsfromCommunityTrusts 414,582 1,021,662

GrantsfromNZLotteryGrantsBoard 149,262 286,606

GrantsfromCommunityOrganisationGrantsSchemes 24,200 64,136

GrantsfromotherGovernmentAgencies 18,550 11,475Sponsorshipincome 114,552 53,187Total Contributions from the Community 3,349,307 4,122,873

ExpensesEmployeeBenefits 434,017 552,707

Advertising&DirectMarketing 388,432 353,022

LotteryPrizes 40,874 133,359OtherFundraisingCosts 48,891 120,792Total Fundraising Costs 912,214 1,159,880Net Contributions from the Community 2,437,093 2,962,993



ContributionsfromthecommunitytosupporttheFoundationinpursuitofitsmissionaregratefullyacknowledged.GiftsofmoneyandpropertyareincludedintheFinancialStatements.Supportisalsogiventhroughtheprovisionofservicesatspecialordiscountedrates.

TheFoundationalsoreliesongiftsofvolunteertimeandexpertisetocompleteworkinmanyessentialrolessuchas

NationalGovernance(BoardandCommittees),RegionalLiaisonGroups,Promotion,Fundraising,Investments,Administration,Accounting,AwardsandGrants.Noattempthasbeenmadetorecordthevalueofthesecontributions.

Sponsorshipincomeisreceivedaspartofco-operativeprojectscompletedwithotherorganisations.

14. Services and Programmes 2012 2011

RevenueNationalHealthContractIncome 366,674 360,474

OtherContractIncome 327,811 289,654

ClientServiceCharges 82,321 69,330Otherincome 70,960 91,658Total Income from Services and Programmes 847,766 811,116

ExpensesEmployeeBenefits 1,096,265 1,576,632

ArthritisInformationResources 26,434 25,668

VolunteerCoordination&Development 30,129 33,750

PublicAwarenessCampaigns(Fully-funded) 703,059 39,875

GeneralAwareness&Newsletters 66,341 75,499

ServiceDeliveryDirectCosts 278,317 229,431ServiceDeliverySupport 169,697 346,945Total Cost of Services and Programmes 2,370,242 2,327,800Net Cost of Arthritis Services and Programmes (1,522,476) (1,516,684)

TheFoundationiscontractednationallytotheMinistryofHealththroughCapital&CoastDHBtoprovidearthritisinformationservices.

15. Administration Expenses2012 2011

AuditFees 17,540 26,135EmployeeBenefits 790,105 816,540

LegalExpenses 2,303 2,115

Property&OfficeExpenses 230,813 305,563

CommunicationsExpenses 47,418 54,844

TravellingExpenses 32,184 72,147

Non-recurringRestructureCosts - 269,790GeneralAdministrationExpenses 122,931 114,289

1,243,294 1,661,423



16. Net Finance Income2012 2011

General fundsDividends 26,591 48,906

Interestincome 70,511 58,530(Loss)/Profitonsaleofinvestments (3,571) 1,965

93,531 109,401

Research fundsDividends 112,156 44,749

Interestincome 78,802 104,919

Profit/(Loss)ondisposalofinvestments 631 (342)(Loss)onForeignCurrency - (9,712)

191,589 139,614Net Finance Income 285,120 249,015

17. Impairment of Investments2012 2011

GeneralFund - - ResearchFund (9,323) (14,406)Total Impairment of investments (9,323) (14,406)

18. Reconciliation of Operating Surplus to Net Cash Flows from Operating Activities2012 2011

OperatingSurplus/(Deficit)fortheYear 25,503 (386,613)Adjustments:Depreciation 78,862 109,158

FinanceIncome (275,798) (234,609)(Profit)/LossonDisposalofProperty,furniture&equipment (258,818) 15,938

(455,754) (109,513)

Movements in Working Capital & Non-Current Liabilities:(Increase)/DecreaseinCurrentAssets (150,369) 76,165

Increase/(Decrease)inCurrentLiabilities 387,323 (1,184,186)(Decrease)inNon-CurrentLiabilities (3,205) (12,839)

233,749 (1,120,860)

Net Cash (Outflow) from Operating Activities (196,502) (1,616,986)

19. Operating leases2012 2011

Leases as lessee

Non-cancellablepropertyleaserentalsarepayableasfollows:

Lessthanoneyear 87,471 141,161

Betweenoneandfiveyears - 72,587

20. ContingenciesTherearenomaterialcontingentliabilitiesattheendofthereportingperiod.(2011:$nil)

21. Subsequent eventsTherehavebeennosignificanteventsaftertheendofthereportingperiodthathaveaffectedtheaccuracyofthesefinancialstatements.


Independent Auditor’s ReportTo the members of The Arthritis Foundation of New Zealand IncorporatedReport on the financial statements

WehaveauditedtheaccompanyingfinancialstatementsofTheArthritisFoundationofNewZealandIncorporated(‘’theFoundation’’)onpages18to28.Thefinancialstatementscomprisethestatementoffinancialpositionasat30June2012,thestatementsofcomprehensiveincome,changesinequityandcashflowsfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Governing Body’s responsibility for the financial statements

ThegoverningbodyisresponsibleforthepreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingpracticeinNewZealandthatgiveatrueandfairviewofthematterstowhichtheyrelate,andforsuchinternalcontrolasthegoverningbodydeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatementwhetherduetofraudorerror.

Auditor’s responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditing(NewZealand).Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheFoundation’spreparationofthefinancialstatementsthatgiveatrueandfairviewofthematterstowhichtheyrelateinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheFoundation’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimates,aswellasevaluatingthepresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Otherthaninourcapacityasauditorwehavenorelationshipwith,orinterestsin,theFoundation.

Opinion

Inouropinionthefinancialstatementsonpages18to28:• complywithgenerallyacceptedaccountingpracticeinNewZealand;• giveatrueandfairviewofthefinancialpositionoftheFoundationasat30June2012andofitsfinancialperformance

andcashflowsfortheyearthenended.

Report on other legal and regulatory requirements

Inaccordancewiththerequirementsofsections16(1)(d)and16(1)(e)oftheFinancialReportingAct1993,wereportthat:• wehaveobtainedalltheinformationandexplanationsthatwehaverequired;and• inouropinion,properaccountingrecordshavebeenkeptbyTheArthritisFoundationofNewZealandIncorporated

asfarasappearsfromourexaminationofthoserecords.

17September2012


AcknowledgementsTheprimarygoalofArthritisNewZealandistoraiseawarenessandprovideadvocacy,information,educationandsupportservicesforpeopleaffectedbyarthritis.Ourworkisonlypossiblewiththesupportofsomanyandthoselistedbelowarebutafew.Theirfinancialcontributionsarevitaltoyou.

MAJOR SPONSORS

GRANTS RECEIVED

GrantshavebeenreceivedfromthemanyTrusts&Foundationswhosupportourworkinthecommunity.

ADHallyTrustAKFranksCharitableTrustACEShacklockCharitableTrustAirRescueServicesLtdAlbert(Pat)DevineCharitableTrustAPEPSITRUSTAPEPSITRUSTAraLodgeNo348CharitableTrustBoardAshburtonTrustCharitableFoundationB&CHewettCharitableTrustBeatriceGeorgesonTrustBillBlackadderTrustCanterburyArthritisSupportTrustChristchurchCityCouncil-StrengtheningCommunitiesFundCOGS–AorakiCOGS–CoastalOtago/WaitakiCOGS–HawkesBay–Tamatea/Tamaki-Nui-A-Rua

COGS–Kirikiriroa/HamiltonCityCOGS–ManukauCOGS–NorthTaranakiCOGS–Papakura/FranklinCOGS–Rodney/NorthShoreCOGS–SouthTaranakiCOGS–WellingtonCOGS–Whangarei/KaiparaCOGS–WhitireiaCOGSWairarapaDunedinCityCouncil–CommunityGrantsFourWindsFoundationGrassrootsTrustHamiltonCityCouncil–CommunityWellbeingGrantHamiltonCityCouncil–Maori&PacificProjectFund2012HildaCurtisCharitableTrustInfinityFoundationLtdJNWilliamsMemorialTrustJackJeffsCharitableTrustJohnBeresfordSwanDuddingTrust

JoyceFisherCharitableTrustKaiapoiCommunityBoardMainlandFoundationManaCommunityGrantsFoundation(Inc)MtWellingtonFoundationNelsonCityCouncilNewZealandCommunityTrust(NZCT)NorthandSouthTrustOxfordSportsTrustPelorusTrustPubCharityIncRG&EFMacDonaldTrustBoardRedwoodTrustIncRehabilitationWelfareTrustRodmorN02CharitableTrustRotoruaEnergyCharitableTrustRotoruaEnergyCharitableTrustSirJohnLoganCampbellResiduaryEstateSKYCITYAucklandCommunityTrust

SouthernVictorianCharitableTrustInc.SouthlandDistrictCouncilCommunityDevelopmentFundTawaCommunityGrantsTedandMollieCarrEndowmentFundTheLionFoundationThePageTrustTheTrustsCommunityFoundationTheVernonHalllTrustFundTrinsleyCharitableTrust(formerlyArthurHensley)TrustWaikatoWaikatoWDFFKaramuTrustWaikato-TainuiTeKauhanganuiInc.WaimateDistrictCouncil–CommunityGrantsFundWanganuiDistrictCouncilWestCoastCommunityTrustWinton&MargaretBearCharitableTrust

BEQUESTS

Wegratefullyacknowledgethefollowingpeopleandtheirfamiliesfortheirgenerosityandsupportinensuringtheirinterestsinourservicescontinue.

EstateNancyJoanBurgessEPonyaFamilyTrustEstateThoraStackwoodEstateBettyLorraineFergusonEstateJeanWilsonHendersonEstateWilliamAlfredRobinsonEstateNgaireFrancesDoddsEstateKathrynMcFarlandEstateHenryGeorgeSparksEstateNoelineABurgeEstateRosemaryPhillipsEstateCarolAudreyAshwellEstateVincentDABlanchard

EstateAvrilYearburyEstateBernardJRussellEstateofDorothyFriskenEstateDavidGordonWebbEstateMervynDouglasFaheyEstateMargaretWestEstateGraemeCharlesWarrenEstateRFBowdenEstateofLeonoraKnappEstateHelenOliveNichollsEstateWilliamJohnGuilfordEstateConstanceCatherineHolmes

EstateRomaMarySimsEstateGrahamElliotGruzelierEstateFayJoanHindmarshEstateJuneMargaretSutherlandEstateofWHMeekEstateofElizabethKennedyEstateofMalcolmCScottEstateJohn&ElsieWalshTrustEstateofHelenJeanLambEstatePieterKoeneEstateNERossEstateJoanSinclair

EstateMaryEllenConnellEstateClaireLeeEstateEileenPHustonEstateAudreyIGibsonEstateofFrancisHerbertRyanEstateArthurGilbertEstateMarthaJonesEstateJoanHelenMillerEdithLillianGraceTongueTrustEstateofColinArmishawEstateJohnRichardLarcombeJoanPatersonCharitableTrustIreneMunroCharitableTrustEstateJanetElsieStreet

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