Variety - the Children’s Charity Annual Report 2016 1

variety.org.nz

2016

Annual Report Brighter futures for Kiwi kids Variety - the Children’s Charity Annual Report 2016 1

Our Vision Helping New Zealand’s sick, disabled and disadvantaged children reach their full potential. Variety - the Children’s Charity Annual Report 2016 2

Contents

Who We Are How We Help Financial Performance 1. Our vision 14. Kiwi Kid Sponsorship 23. Fundraising and partner events 3. From our CEO 16. Kiwi Next Generation 25. Our year in review 4. From our President 17. Gold Heart Scholarships 27. Governance 5. About us 18. Grant giving 29. Financial review 7. New Zealand children 19. Laptops for Learning 31. Special thanks 9. Our focus 20. Bikes for Kids 33. Get involved 11. #DearNewZealand 21. Activities and outcomes Variety - the Children’s Charity Annual Report 2016 3

From our CEO

Every day New Zealand families tell us of their struggle to make ends meet. For those families with children who are sick, or have a disability, their struggle is even greater.

Variety is committed to developing programmes to address the issues today’s Kiwi kids are facing, but we can’t do this alone.

It is with thanks to the support of our Kiwi Kid Sponsorship is a tangible way We ended 2016 with an all-in-one individual donors and corporate partners to provide a direct response to the single Microsoft cloud solution which brings that our grant giving and programme greatest issue facing our kids, child poverty. together Office 365, Dynamics NAV and delivery exceeded more than $2million, CRM portal technologies all connecting up 34% on the prior year, and a historic This year more than 2,600 children to provide a seamless and efficient record. This means we can do so much received clothing, bedding, shoes, experience for our donors, families more for our children. school essentials and the opportunity and referrers. to participate at school and in the Working collaboratively with our partners, community. But it is so much more than We are well positioned to scale up our both in the corporate and non-profit just the provision of items, it’s about giving response over the coming year and by sectors, magnifies our collective efforts children hope, confidence and self-esteem. working together we can help even more to deliver a more holistic response. Kiwi Kiwi kids to reach their full potential. Next Generation is a prime example of Many of the children Variety helps are Thank you for your ongoing support collaboration – Variety, The Salvation faceless and voiceless. To tell their stories of Variety. Army and The Warehouse joining forces Variety launched #DearNewZealand, a to improve the life chances of 700 social media campaign to encourage the vulnerable 16-18 year olds who are not public to ‘join the conversation’ to find in education, employment or training. solutions to child poverty in New Zealand. This will be an ongoing campaign to Providing opportunities for individuals engage with the public, media and Lorraine Taylor and organisations to engage in the political leaders to address this issue. Chief Executive community is at the heart of what we do. We celebrated CMC Markets 10th With ambitious targets for the future, anniversary in New Zealand, Ford New upgrading our technology platform Zealand’s 25-year sponsorship of Variety, was a key project this year. the best ever SKYCITY Variety of Chefs, and welcomed new Principal Partner, NZ Retail Property Group, supporting a number of our programmes including Kiwi Kid Sponsorship. Variety - the Children’s Charity Annual Report 2016 4

From our President

Thanks to the efforts of our team and our incredibly generous supporters, Variety has this year, for the first time, seen our grant giving and programme delivery surpass $2million. This represents an increase of some 34% over last year and reflects our increased focus on delivering programmes that make a tangible difference to the lives of Kiwi kids.

On behalf of our Board, and the children The problem of child poverty is a multi- We also received awards for our annual whose lives have been positively impacted dimensional one and cannot be solved by report and a Future Programme award for through Variety, I would like to express any one agency. It can however be solved Kiwi Kid Sponsorship; Seven Sharp was my sincere appreciation to all our through raised awareness and increased recognised for their support of Variety supporters who have made this possible collaboration between privately funded New Zealand with a Media Award; and charities, such as Variety, and local and long standing Variety mentor, Chris Bush, This year has been a watershed year in many government funded initiatives. We have received a Presidential Citation. respects as decisions made in past years have already seen benefit from our collaboration come to fruition. Proceeds from the sale of with The Salvation Army in the delivery of These awards are a wonderful tribute our previous office premises have enabled the Kiwi Next Generation initiative. One to the efforts of our team who work so us to make significant investments for the of our ambitions for this next year is to hard to make a difference to the lives of future, in particular in: develop effective partnerships with other sick, disabled and disadvantaged Kiwi agencies to provide more comprehensive kids. On behalf of the Board, our sincere • O ur new enterprise management system, sets of solutions. thanks to Lorraine and her team for their that will give us the capacity to grow outstanding efforts, and again to all our our flagship Kiwi Kid Sponsorship Joe Moodabe ONZM, a past President supporters whose help and generosity programme. While the system will enable of Variety and a Board member for brightens the futures of our Kiwi kids. us to more efficiently administer the eight years, retires this year. We are programme, an increase in numbers of truly grateful to Joe for his outstanding children sponsored inevitably increases contribution to Variety over the years. We the cost and complexity of delivery. Some are extremely fortunate to fill the vacancy of these additional costs will be funded with someone of the calibre of Lizzie from reserves as we increasingly focus Marvelly who has been an outstanding Richard Spilg on those programmes that, based on our Ambassador for Variety for many years. President growing experience, deliver the most significant and sustainable benefits The Variety team continued its run of success at this year’s Variety • O ur #DearNewZealand social media International Conference, winning the campaign that has given us the insights Variety Heart Award for the best Variety to assume a larger advocacy role in office in our revenue category for the the fight to eliminate the unacceptable second year running. situation of 1 in 3 Kiwi kids living in poverty Variety - the Children’s Charity Annual Report 2016 5

About us

Nearly 1 in 3 of our children the basic necessities, much- With our support, children are living in deprivation. needed medical equipment, have better health, improved It’s not the Kiwi way. life-changing mobility educational outcomes, better needs, and developmental life pathways and positive Variety – the Children’s Charity opportunities. engagement with the is a champion for Kiwi kids and community. every year we help thousands Variety works alongside of local children to have schools, community agencies brighter futures. and healthcare professionals, tackling child deprivation so Variety offers Kiwi kids and that one by one, Kiwi kids who their families targeted, flexible urgently need our life-changing support to meet their specific assistance are set up to reach needs. We help by providing their full potential in life. Variety - the Children’s Charity Annual Report 2016 6 Variety - the Children’s Charity Annual Report 2016 7

New Zealand children and the UN report Variety - the Children’s Charity Annual Report 2016 8

Along with every other country in the world, New Zealand is fortunate to have an external audit of what we are doing for our children.

The United Nations Convention The 18 CRC members have worked The November 2015 submission on the Rights of the Child, signed with and on behalf of children, and are reported three areas of urgent need: (ratified) in 1993, requires that our appointed from diverse countries for fixed • N ew Zealand’s unacceptably high rates government submits a report every terms. Their concluding observations on of child poverty and deprivation five years. The report covers health, New Zealand’s performance has now been • T he quality of care and outcomes being welfare, education, income support, released and in it recognises progress achieved for children in the care of discrimination, justice and in effect, in certain areas and pointed to lack of the state every facet of children’s lives using progress in others. Although the report is • S ystematic inequities and poor outcomes the Convention as a template, and inevitably rather unwieldy in its language for Maori children non-government organisations and structure it points to our ongoing (NGOs) in each country also report. failure to address child poverty and the There is ample documentation of the nature discrepancy between Maori and non-Maori of these problems and detailed proposals The United Nations Committee on the child well-being indicators. It recognises for their remedy. What is needed, as the Rights of the Child (CRC) then assess the promise of the new re-organisation of CRC has repeatedly said, is a coordinated these reports, and the process takes our system for children in state care. plan and (what they haven’t specifically approximately a year from first receipt, to said out of diplomatic nicety), the political the final comments and recommendations. In addition to the encouragement of actual courage and will to implement it. The New Zealand Government submitted material progress, the most important thing its most recent report for the fifth periodic this reporting process has brought is the Dr Ian Hassall review in December 2015 and since then improvement in definition of the problems Children’s Advocate, Variety has responded to questions from the CRC facing New Zealand children and their based on its own and NGO reports. families. Another report worth reading is the submission of the UNCROC Monitoring There is an opportunity for discussion Group (UMG) which is convened by with the CRC in person. Representatives the Children’s Commissioner and has of our government, led by the Minister representation from Save the Children of Social Development, as well as the New Zealand, UNICEF New Zealand, the Children’s Commissioner and NGO Human Rights Commission and Action for representatives were in Geneva in Children and Youth Aotearoa (ACYA). September for these discussions. Variety - the Children’s Charity Annual Report 2016 9 Our focus

Variety is dedicated to helping New Zealand children aged 0-18 years in all sorts of challenging circumstances. We fill the funding gaps so Kiwi kids are set up to reach their full potential. Our strength is in providing flexible, tailored help to meet the specific needs of the individual child.

With our support, children have better health, improved educational outcomes, better life pathways and engagement with the community. Variety meets a wide range of grass-roots needs through three core programmes:

Caring for Kids Kids on the Move Future Kiwi Kids Variety improves child Variety provides life- Variety believes every health outcomes for Kiwi enriching assistance so Kiwi kid has the right to kids living in deprivation. Kiwi kids can get out educational equity and To reach their full potential and about. From much- to dream big. We help these children require needed mobility equipment level the playing field for assistance to meet their for a child with physical disadvantaged children, basic needs and many also restrictions, to all-abilities overcoming barriers, need access to specialist playground equipment, supporting access to healthcare services. bikes for disadvantaged education through Kiwi kids or a Variety technology and fostering Sunshine Coach for a talents in the arts, music school, it is all about and sport. freedom, independence and inclusivity! Variety - the Children’s Charity Annual Report 2016 10 Variety - the Children’s Charity Annual Report 2016 11

Your voice. Your chance to make a difference.

The campaign The results In New Zealand, 1 in 3 of our children grow To date, the films have been viewed by up in poverty – going without the basic over 250,000 people and of those, 118,000 essentials every child needs and deserves. people shared, liked or offered their own ideas on how to solve child poverty in #DearNewZealand launched in August New Zealand. These films generated a huge 2016 with five simple, poignant and amount of conversation and debate. powerful videos released across key media and social media platforms. Each video Off the back of the campaign, 135 caring featured one of New Zealand’s most trusted New Zealanders also signed up to become a household names – Sir Graham Henry, Kiwi Kid Sponsor for $45 a month. Each of Taika Waititi, Toni Street, Stacey Morrison, the sponsored children now have access to and Andrew Mulligan – reading, word for the basic essentials they were missing out word, a real letter written by a real Kiwi kid on including basic clothing, shoes, warm living in poverty. bedding, school uniform and stationery, medicine, or extra-curricular activities Additional clips were made by other well- that help them feel included such as school known New Zealand personalities who camp, swimming lessons, or the chance to shared their ideas on how we, as a country, play rugby or netball with their peers. could solve this issue together. Viewers were asked to share their ideas of how they Next steps would solve child poverty, as well as sign up #DearNewZealand is the first phase of to sponsor a child through Variety’s Kiwi a wider campaign to elevate the issue, Kid Sponsorship programme, and sign a stimulate debate, position Variety as a national petition calling on the Government leading advocate for change, and help to take decisive action. more disadvantaged kids in desperate need through growing the Kiwi Kid Sponsorship programme.

To find out more visit : dearnz.co.nz

Variety - the Children’s Charity Annual Report 2016 12 Variety - the Children’s Charity Annual Report 2016 13

How we help Variety - the Children’s Charity Annual Report 2016 14

Kiwi Kid Sponsorship

1 in 3 Kiwi kids live in deprivation. Variety Kiwi Kid Sponsorship gives them the good start in life they deserve.

For as little as $45 per month, Kiwi Kid sponsor with an individual child so they Sponsors fund the essentials that a local child can connect and create positive change in would otherwise go without. It might be basic their lives. clothing, shoes, stationery for school, warm bedding, medicine or an extra-curricular Special thanks to our Principal Partner NZ Retail activity that helps them feel included. Property Group who sponsored 75 Kiwi kids.

Variety works alongside schools, community agencies and healthcare professionals who refer children around the country who most urgently need our help. We then match a

1,014 Kids started school 2,680 this year with Total children new uniforms sponsored

383 Participated in $1.49M extra-curricular Distributed to activities incl. sponsored sports children

“I love that in a small way I’m able to make a huge difference in a child’s life. Every kid in this country deserves the same start in life and I’m proud to be contributing to that.”

Kiwi Kid Sponsor Variety - the Children’s Charity Annual Report 2016 15 Variety - the Children’s Charity Annual Report 2016 16

Kiwi Next Generation

Around 27% of all school leavers leave school without the qualifications or skills to progress to further education or employment.*

A new initiative launched in “We’ve helped design this programme as a Kiwi Next Generation is delivered at The 2016, Kiwi Next Generation was result of our broad experience dealing with Salvation Army Education and Employment developed in collaboration young people not in education, employment training centres in Whangarei, Auckland, between The Warehouse Group, or training (NEET),” she said. Tauranga, Hamilton, Whakatane, Fielding, The Salvation Army and Variety. Carterton, Christchurch, Ashburton, The two charities are pleased to be Oamaru and Dunedin. The programme aims to support youth (aged collaborating to foster the full potential of 16-19 years) move from being a NEET (Not our country’s young people, regardless of in Education, Employment or Training) into their individual situation. Special thanks to The Warehouse and The Salvation Army. education and training by providing them with the resources, support, confidence For some of our young people, their family and motivation to succeed in their chosen and personal circumstances create barriers Partnering with you for a education and employment. which make success challenging to imagine, better community let alone achieve. We believe no young This is a free, two-year initiative wrapping person should be left behind. additional support around the Youth Guarantee curriculum for more than 700 young people, running through 2016 and 2017. 700 Kiwi Next Generation is made up of core Young people to benefit from the education, youth mentoring and related 260 Meals over programme support components to enable young people 20 weeks to succeed in their education. Mentors work with youth identifying and working through potential threats in their lives that could result in them falling back in to NEET status.

The Salvation Army’s Academic Manager, Lynne Johnston said they had observed that a portion of candidates participating in other programmes were insufficiently supported to make the best of the programme, or 13 Centres around secure the step up it offered. New Zealand running Kiwi Next Generation

*As at 2012, NZ Department of Statistics Variety - the Children’s Charity Annual Report 2016 17

19 Gold Heart Scholarships granted $63,500 Value of grants distributed 68% Helped young sports people

11% Supported budding 21% musicians Assisted talented dancers

Gold Heart Scholarships

This year Variety helped 19 selectors from Softball New Zealand and Shorter term goals for Beth include talented young Kiwi kids to pursue has been selected to play in the Emerging representing New Zealand in Florida next their dreams and overcome White Sox development programme which year with the Junior White Sox under-19 personal challenges with a Variety aims to nurture young players to reach their softball team. Gold Heart Scholarship. These Olympic dreams. young people, who already excel Beth will use her Variety Gold Heart in the arts, sports or education, Beth is a top player, despite not always Scholarship funding for equipment costs were awarded financial support having access to the equipment she needs. and to cover travel to tournaments and of up to $5,000 to help them Her mum says that, “instilled with the belief competitions. achieve their life goals. that it is the person with the skill, not the equipment, Beth has managed to get by, and Meet Beth her ability has impressed the New Zealand Special thanks to our Principal Partner CMC Markets, who funded eight scholarships Beth’s ultimate goal is to become a selectors for baseball and softball”. this year. professional softball player in Japan. With her passion for softball and baseball, Beth has been recognised by national Variety - the Children’s Charity Annual Report 2016 18

$10,000 The largest grant given out this year for boarding fees $2.18M Given out in grants this year

$90 The smallest grant given out this year for school camp

Grant Giving

Variety offers grant assistance with funds to get an iPad. Ana’s language for children and child focused and literacy skills are also delayed so having organisations in all sorts of access to a device that can support her challenging circumstances. We reading and writing is greatly beneficial - meet a wide range of grass-roots especially with completing her homework. needs for children, helping fill the funding gaps so more Kiwi kids Ana’s mum says: “Ana’s world has now can reach their full potential. opened up. Along with the benefits for her learning, the device also allows Ana We fund a broad range of requirements from to communicate and connect with friends basic essentials, to much-needed medical or and family out of town allowing her to feel mobility equipment, educational assistance, like a normal teenager.” therapeutic care and IT devices to enhance learning opportunities.

Meet Ana Ana is 17 years old and has Goldenhar Syndrome (a condition where she was Special thanks to our Principal Partner born with one ear). She has severe hearing SKYCITY for helping fund our general grants. difficulties, wears a hearing aid and New Zealand Sign Language is her first language.

This year, on advice from her teacher, Ana requested financial support to provide her Variety - the Children’s Charity Annual Report 2016 19

24 Low decile schools received laptops impacting 4,200 115 students Individual children received devices

$239K Value of devices 300 Digital devices given out this year Laptops for Learning

The Laptops for Learning Laptops for Learning enables young people The Laptops for Learning programme programme was developed as a to use a digital device as part of their in-class makes a tangible difference to New Zealand partner initiative between Variety learning, and to take it home when required. families in need by enhancing a child’s and The Warehouse. Working This provides students with access to the chance of educational success through together, we provide laptops to low- information they need to support their the use of technology. decile schools across New Zealand. learning across the curriculum.

For today’s students, access to technology is This year digital devices such as iPads, HP vital for high-quality learning opportunities Notebooks and Chromebooks valued at close Laptops for Learning is proudly supported and future growth and development. to $240,000 were granted to individuals, by our Principal Partner However, the reality is that many young low decile primary and secondary schools people do not have access to IT devices in throughout New Zealand. Partnering with you for a their homes. Due to the expense, very few better community schools are able to make digital devices available to students to take home to further their studies outside school hours. Variety - the Children’s Charity Annual Report 2016 20

290 bikes given to deserving Kiwi kids Tour visited areas of high deprivation in the South and North Islands

“I love my new bike, it’s my best gift, thank you so much”

Bikes for Kids

This year Variety provided 290 deserving or disadvantaged children with the freedom and independence of their very own bike.

Some children had overcome Timaru, Dargaville, Whangarei, Kawakawa, adverse circumstances, in some Kaikohe, Kaitaia and Mangonui. situations the family was simply not in a position to purchase a bike There were also several presentations and in other cases the programme in Auckland, a city that continues to recognised and rewarded children have the largest low decile population who were role models at their in New Zealand. school or in their community.

We believe this recognition not only Bikes for Kids is proudly supported benefits the child concerned, but by our Principal Partners provides an incentive for their peers to follow in their footsteps and become good school and community citizens.

Variety presents bikes in a different region each year on our Bikes for Kids Tour. This year we gave out bikes to kids at schools in Christchurch, Ashburton, Methven, $2.18M

A record $2.182 million granted

71 % 3

Grant & programme Former Gold Heart delivery 71% of Scholars competed in income Paralympics in Rio

68%

Of all grants were given to children living in poverty 2680 34%

Kiwi kids matched Increase of with sponsors Kiwi kids sponsored since last year

$3M

Income topped $3 million for the first time

164% $823K

Increase in revenue Goods and services since 2011 in kind support provided over the year Variety - the Children’s Charity Annual Report 2016 23 Fundraising and Partner Events Timeline 2015 2016 NOV 15 DEC 14 Skechers Variety at Work Women’s 6K team building OCT 15 Over $3,000 was raised for day – Zurich FEB Kiwi Kid Sponsorship Miss Universe Insurance 14-20 New Zealand Wrapped and presented Christmas gifts to children at BDO Wellington Raised over $18,000 for Kiwi Manurewa Central Primary Kid Sponsorship to Auckland Cycle Challenge $20,000 was raised for DEC 15 Variety’s Bikes for Kids programme Variety at Work team building day – Hasbro The Hasbro team took part in a gardening day at Wesley Primary School NOV 30 Laptops for Learning Otago NOV 4 and Southland Bond SPECTRE 102 digital devices valued at $64,000 presented to 10 film premiere schools Over $20,000 was raised FEB 22 DEC 10 Mahana film premiere Variety at Work $6,500 raised team building day – Johnson & Johnson The J&J team built and painted a playhouse at Panmure Bridge School Variety - the Children’s Charity Annual Report 2016 24 Fundraising and Partner Events Timeline

FEB 28 APR MAY 26 AUG 9 An intimate MAY Kiwi Next Variety at Work evening with Generation team building Sol3 Mio JUNE programme day – Zurich $38,000 raised. Thanks to launch Insurance Villa Maria Estate for their JULY generous support Helped with gardening at Friends of Variety Haypark School Champagne Series Over $6,500 was raised AUG 18 SKYCITY Variety of Chefs Over $85,000 was raised on the night. Thanks to SKYCITY for their ongoing support

MAR AUG 17 Variety at Work 11-18 team building Variety Trillian MAY 6 day - Zurich Bash Insurance Variety at Work The Zurich team did team $155,000 was raised team building building with Variety at Work day – William Buck Christmas SEP 30 Gowland 60 staff from the WBCG The Warehouse team helped with gardening Scratch ‘n Win and painting at Glen Taylor, Glen Innes and Glenbrae Campaign Primary Schools Thanks to The Warehouse for their generous support. Over $290,000 was raised! Variety - the Children’s Charity Annual Report 2016 25 Our year in review

The 2016 year has been a record-breaking one for Variety

• F or the first time in our history, our grant giving and programme delivery exceeded $2million – with a record $2.182million, an increase of 34% on last year. Grant and programme delivery costs were 71% of total income; up from 55% in the prior year.

• T his year, income topped $3m for the first time – at $3.09m – up 5% on last year and we realised an Operating Surplus of $1.775m (7% up on last year).

• T he deficit of $405,000 is consistent with our budget and forecast. The decision was made to utilise reserves to enable us to meet the growing needs of Kiwi kids today, while funding historic grants where income was recognised in a prior year – these historic grants comprised 81% (or $331,000) of the deficit.

Supporting our Kiwi Kids

2016 has been a year of consolidation – we have lives have changed as a result of this programme – embarked on a system development project that will children who attended their first school camp, wore allow us to more efficiently assist children and their a uniform that fitted for the first time, or got through families. This will form a platform for our future growth, winter without missing school thanks to their warm while enabling us to control our expenses related to bedding and clothing. programme delivery. • Variety’s Gold Heart Scholarship Programme Research has shown the single biggest issue facing Kiwi continued to help talented young people achieve kids today is poverty. Variety has restructured its grant their goals – we were all glued to the TV cheering on programme accordingly – this year 68% of our funding three “Variety kids” competing in the Paralympics was targeted to support Kiwi kids living in deprivation at Rio! What a privilege to have helped them get to through the Kiwi Kid Sponsorship Programme. that point, and been part of their incredible journey.

Our financial success has impacted most significantly • Funds raised at last year’s Warehouse Gala Dinner on Kiwi kids in need - here are some of our proudest were put to work in our joint programme with The achievements: Salvation Army - Kiwi Next Generation. We are already seeing the success stories – with some • Variety Kiwi Kid Sponsors now support more incredible young people overcoming challenging than 2,680 children providing access to the basic circumstances to succeed in their chosen education essentials they need to thrive - a 34% increase in and employment fields. the number of children on the programme over last year. We hear every day from families whose Variety - the Children’s Charity Annual Report 2016 26

Financial Snapshot Where Our Funds Come From

$3,500,000 $3,500,000

$3,000,000 $3,000,000

$2,500,000 $2,500,000

$2,000,000 $2,000,000

$1,500,000 $1,500,000

$1,000,000 $1,000,000

$500,000 $500,000

$0 $0 2011-12 2012-13 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16

Revenue Expenses Grants Approved Future Kiwi Kids Fund Indiividual Corporates Events Other

Approved Variety Grants Children sponsored through by Programme Kiwi Kid Sponsorship

$2,500,000 4,500

4,000

$2,000,000 3,500 34% 3,000 increase in children sponsored in $1,500,000 2015-16 over 2,500 prior year

2,000 $1,000,000

1,500

1,000 $500,000

500

$0 Number of children 0 2013-14 2014-15 2015-16 2011-12 2012-13 2013-14 2014-15 2015-16 Budget 2016-17 Caring For Kids Future Kiwi Kids Scholarships

Kids On The Move Kiwi Kid Sponsorship Variety - the Children’s Charity Annual Report 2016 27

Governance

Variety – the Children’s Charity is an Incorporated Society and is registered as a charity with the New Zealand IRD and the Charities Commission (CC24039) and is able to receive tax-deductible donations.

The Variety Board acts in the These include: The Board functions include: interests of Variety New Zealand – 1. E stablishing the investments to • R eviewing and approving annual its members, donors and employees, ensure sufficient liquidity and return budgets, strategic and financial plans those seeking assistance from to meet the requirement for periodic • P roviding adequate supervision and Variety and the wider community. distributions to support the stated support to the CEO The Board at all times recognises the objectives. • E nsuring financial solvency of the trust placed in it and endeavours to 2. V ariety New Zealand expects that, organisation meet the needs of its stakeholders. at the Board’s discretion, portfolio • I nterpreting and representing the assets may be used for distributions needs and concerns of the community Board Structure approximately twice every 10 years, • E nsuring effective management The Variety Board is elected by Variety at those times when annual donations processes are in place members to represent their interests, act in are insufficient to provide continuity of • M onitoring risk accordance with the Variety New Zealand support for its vision and purpose. • I nstituting a fair system of policies Constitution and uphold the Charter of 3. M aintaining an appropriate asset and procedures for human resource Variety International. The board is in place allocation that has regard to the agreed management to provide policy leadership and supervise but flexible spending policy, while • O verseeing Health and Safety operations. having the potential to replenish the management fund in years when no distributions Variety Future Kiwi Kids Fund are required and, if possible, to produce Directors accomplish their functions Variety’s investment policy is set by the capital growth in the long term to through regular monthly meetings, Board, implemented by our investment provide higher levels of support. and through the committee structure – partner, JBWere, with oversight provided 4. T he portfolio strategy seeks to Finance & Investment Committee by the Finance and Investment Committee. maximise return within reasonable and the Grant Audit Committee. and prudent levels of risk consistent The objectives of the Portfolio have been with these investment objectives. established in conjunction with a review 5. O ver time it is expected that the of current and projected distribution portfolio value will exceed inflation requirements of Variety New Zealand. growth by 4% per annum. Variety - the Children’s Charity Annual Report 2016 28

Variety Board

Name Position Committees Appointed Area of Expertise Qualifications

Richard Spilg President Finance & Nov-13 Finance B.Comm, B Acc, Chartered Accountant Audit (Australia)

Sharon Henderson Vice President Nov-12 Marketing Diploma in Advertising & Marketing

Deborah Fox Director Nov-14 Legal B.Com / LLB (Hons)

Steve Jackson Treasurer Finance & Nov-13 Finance B.A., F.C.A Audit

Dr Ian Hassall Director Grant Nov-14 Medical M.B., Ch.B., F.R.A.C.P., D.C.H.

Joe Moodabe ONZM Past President Mar-09 Management

Megan Tunks Director Nov-15 Maori Communities M.Phil (Hons), GradDipTchg (Secondary), B.A.

Mark Vella Director Finance & Nov-14 Management Advanced Dip Ed, Post Grad Dip Sp Ed Audit

Andrew Webster Immediate Past Nov-07 Legal B.Com/LLB(Hons) and McomLaw (Hons), President Barrister & Solicitor of High Court of NZ

External advisors

Banker Auditors Insurance ASB Bank Ltd KPMG, 18 Viaduct Harbour, Albany Insurance Services Ltd, Auckland 1140 PO Box 205, Albany Village 0755 Investment Partner JBWere, Level 38, Vero Centre, Marsh Ltd, PO Box 2221, 48 Shortland Street, Auckland Shortland Street, Auckland Variety - the Children’s Charity Annual Report 2016 29 Financial Review

Summary Statement of Financial Performance for the year ended 30 September 2016

2015-16 2014-15 Variance $ $

Donations 485,498 570,562 -15% Donations to Kiwi Kid Sponsorship Programme 1,374,172 877,634 57% Memberships 3,422 2,960 16% Interest received 67,613 15,853 326% Investment revaluation 36,815 30,765 20% Fundraising income 1,121,722 1,456,381 -23%

Total Operating Revenue 3,089,242 2,954,154 5%

Depreciation 37,793 34,393 10% Fundraising expenses 643,528 573,995 12% Rent & outgoings 92,291 37,573 146% Salaries 488,520 523,838 -7% Other expenses 52,008 129,881 -60%

Total Operating Expenses 1,314,140 1,299,680 1%

In Kind Revenue 823,060 916,235 -10% In Kind Expenses 823,060 916,235 -10%

Funds Available for Distribution 1,775,102 1,654,474 7%

Grants Approved (2,182,421) (1,625,066) 34%

Net Surplus/(Deficit) (before one-off items) (407,319) 29,408 -1485%

Gain on sale of property - 1,070,577 0%

Net Surplus/(Deficit) For Year (407,319) 1,099,985 -137% Variety - the Children’s Charity Annual Report 2016 30

Summary Statement of Financial Position Summary Statement of Movements in Funds for the year ended 30 September 2016 for the year ended 30 September 2016

2015-16 2014-15 Retained Future Kiwi Total $ $ Earnings $ Kids $ Equity $

Current Assets Balance at 1 October 2014 318,244 1,125,000 1,443,244 Cash at bank 778,996 1,573,225 Investments 1,606,932 1,027,652 Surplus/(deficit) for the period 1,099,985 - 1,099,985 Receivables and Prepayments 68,288 39,013 Other comprehensive Accrued Revenue 311,456 589,826 revenue and expense - - - Total Current Assets 2,765,672 3,229,715 Balance at Fixed Assets 329,481 76,237 30 September 2015 1,418,229 1,125,000 2,543,229

Total Assets 3,095,154 3,305,952 Balance at 1 October 2015 1,418,229 1,125,000 2,543,229

Current Liabilities Surplus/(deficit} for the period (407,319) - (407,319) Sundry payables & accruals 238,861 216,755 Other comprehensive Grants approved but not yet paid 677,457 494,115 revenue and expense - - - Revenue in advance 42,925 51,853 Balance at Total Current Liabilities 959,244 762,724 30 September 2016 1,010,910 1,125,000 2,135,910

Total Liabilities 959,244 762,724

Net Assets 2,135,910 2,543,229

Equity Retained earnings 1,010,910 1,418,229 Future Kiwi Kids 1,125,000 1,125,000

Total Equity 2,135,910 2,543,229 Independent auditor’s report on the summary financial statements

To the Directors of Variety - the Children’s therefore, is not a substitute for reading the audited Auditor’s responsibility Charity Incorporated financial statements of Variety - the Children’s Our responsibility is to express an opinion on The accompanying summary financial statements Charity Incorporated. the summary financial statements based on our on pages 29 to 30, which comprise the summary procedures, which were conducted in accordance statement of financial position as at 30 September This report is made solely to the beneficiaries as a with International Standards on Auditing (New 2016 and the summary statement of comprehensive body. Our audit work has been undertaken so that we Zealand) (ISA (NZ)) 810 Engagements to Report on revenue and expenses, changes in equity and cash might state to the incorporated society’s beneficiaries Summary Financial Statements. flows for the year then ended, and related notes, those matters we are required to state to them in the are derived from the audited financial statements auditor’s report and for no other purpose. To the fullest Other than in our capacity as auditor we have no of Variety - the Children’s Charity Incorporated extent permitted by law, we do not accept or assume relationship with, or interests in, the incorporated society. (“the incorporated society”) for the year ended 30 responsibility to anyone other than the incorporated September 2016. We expressed an unmodified audit society’s beneficiaries as a body, for our audit work, this Opinion opinion on those financial statements in our audit report or any of the opinions we have formed. In our opinion, the summary financial statements, report dated 7 November 2016. Those financial derived from the audited financial statements of statements, and the summary financial statements, Director’s responsibility for Variety - the Children’s Charity Incorporated for the do not reflect the effects of events that occurred the financial statements year ended 30 September 2016, are a fair summary of subsequent to the date of our audit report on those The directors are responsible for the preparation of those financial statements, in accordance with FRS- financial statements. a summary of the audited financial statements, in 43 Summary Financial Statements. accordance with FRS-43 Summary Financial Statements. The summary financial statements do not contain all the disclosures required for full financial statements under generally accepted accounting practice in New Zealand. Reading the summary financial statements, 7 November 2016 - Auckland

Variety - the Children’s Charity Annual Report 2016 31

We couldn’t do it without your help. A special thanks to…

PATRON VARIETY MEMBERS KPMG Old Timers Dame Catherine Tizard ONZ, GCMG, Aline Sandilands Marsh Insurance OMNT – Turtles II DBE, QSO Andrew Webster Miss Universe New Zealand Once Upon a Time Angela Salmon New Zealand Automobile Association Pink Truck’n VICE PATRONS Arun Varma Nicholson Print Solutions Ray White Papanui (Chch) Dame Kiri Te Kanawa ONZ, DBE Calven Bonney RE/MAX Resene Truck Sir George Fistonich KNZM Dame Catherine Tizard Singapore Airlines Scooby Doo Simon Dallow Chris Huljich Smartlogic Stuart Chapman Christopher and Jackie Reeve Sony Pictures Sustainable Landscapes INTERNATIONAL Colin Pauling South Pacific Pictures Swingers AMBASSADORS Colleen Young Spec Savers Team Cambridge Dame Vera Lynn, DBE Deborah Fox Starmetro Team Magnum 1 Paul Hogan, AM Dr Ian Hassall The Radio Network Team Magnum 2 Sam Neill, DCNZM, OBE Emma Parry The Rotary Club of Pakuranga Team Mooloo Sean Fitzpatrick, ONZM Fiona Milburn TR Group Team Power Parts Wallies Sir Michael Caine, CBE Sir George Fistonich Valentine Books Best Start Sir Roger Moore, KBE Grahame Knight Val Morgan The Cup Cakes (Aussie) Sir Sean Connery Grant Meese Villa Maria Estate The Ladies Irene Mosley William Buck Christmas Gouwland The Tron Truck NATIONAL AMBASSADORS Jayne Kirton World Expeditions The Wallies Antonia Prebble Joe Moodabe ONZM Zurich New Zealand Tiki Tour Girls Bronwyn Turei John Fauvel MBE Twisted Sistas Constable Bryan Ward, QSM and Bobby Libby Dykes For their help during Bash, Mini Walter Vandeer Kley Lizzie Marvelly Louise Wallace Bash and other Variety events, What a Load of Bull Hewitt Humphrey, QSM, JP Lynda Parsons a special mention to: Jayne Kiely Mark Vella VARIETY VOICES STAFF Johnson Raela Mark Wright BASH OFFICIALS Sarah Poppe Karen Olsen Michelle Boag Air Force Boys James Doy Liane Clarke Mike and Ann Thompson Black Magic Mark Wright Neil Quartly Geoff Bentham VARIETY BOOK FAIR Shane Cortese Paul Davies Gil Tremewan Jason Valentine-Burt Suzy Cato Peter and Lesley Lawson Grahame Knight Peter Rowell Jacqui Madelin 2015 VARIETY INTERNATIONAL VARIETY LIFE MEMBERS Richard Spilg Jeff Burson AWARD WINNERS Carole Bruce Sam McGredy CBE Lou Vandermeer Variety International Peter Drummond MNZM Sharon Henderson Lynne Bjarnesen Presidential Citation – Chris Bush Sir John Walker Simon Dallow Mark Prujean Variety International Pam Fauvel QSM Stephen Fisher Mark Wilson Media Award – Seven Sharp Steve and Helen Jackson Mark Wright VARIETY BOARD Stuart Chapman Murray O’Donnell (Bash Director) Andrew Webster TRUSTS Wayne Adsett Shane Cortese Deborah Fox Simon Dallow David Levene Foundation Mana Foundation Dr Ian Hassall PRINCIPAL CORPORATE Super Hubert SKYCITY Auckland Community Trust Joe Moodabe ONZM SPONSORS Tom Sharplin Trillian Trust Mark Vella CMC Markets Trevor Crowther Trust Waikato Megan Tunks Ford New Zealand Richard Spilg (President) Johnson & Johnson Pacific BASH TEAMS Sharon Henderson (Vice President) NZ Retail Property Group AA Steve Jackson (Treasurer) SKYCITY Argus Fire Protection The Warehouse Bernie’s Buddies GRANTS AUDIT COMMITTEE Blues Bros Dr Ian Hassall SPONSORS AND SUPPORTERS Busted Donkeys Pam Fauvel QSM Altis Consulting Corp Group Avanti Plus David Drake FRIENDS OF VARIETY BDO Dunga Team Bev Roberts (Chair) Black Magic Every Little Boys Dream Aline Sandilands Digital Stream LTD Fish Pot Café Angela Hunter Dynamo Events FOAM Anisia Shami Eventium Ford True Blue Crew 1 Betty Robertson First Tier Ford True Blue Crew 2 Diana Fenwick QSO Fuji Xerox GT Limo Gill Norris Graeme Thomson Antique Hydrant Hoppers Julie Holter - & Estate Jewellery LAPD Jenny Hassall Groupon Len Holland Team Jennifer Martin Hasbro Me & You Karen Kay Henry Schein Moles on Sortie Karen Olsen Hoyts Cinemas Naki Boys Pat Courtney Intuit Creative Naki Girls ITM Building Supplies Ohakune Veggies Variety - the Children’s Charity Annual Report 2016 32 Variety - the Children’s Charity Annual Report 2016 33

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