Chairman's overview
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The best science to hand tells us that 80 percent of the information we humans take in is visual and that 40 percent of the brain is used in processing that information. It stands to reason then, that loss of sight can have a profound effect on the way life is lived.
The RNZFB is about showing people with little or no sight new ways of knowing and new ways of doing that enable personal talents and independence to shine through, and for the full mantle of citizenship to be assumed. The Foundation's key driver is the well-being of its blind, deafblind and low-vision members and the quality of their participation in society, according to personal choice.
For an organisation with such a specialised mission to replace its Chief Financial Officer and prepare to transition to a new Chief Executive in just one year is demanding enough, but then to ask staff and volunteers to continue "business as usual" is a very tall order indeed, but one that has been met resoundingly well by Foundation staff and supporters. On behalf of my fellow Directors, I thank all staff and volunteers most sincerely, for going the extra mile on behalf of members, for putting the well-being of the Foundation ahead of any personal frustrations experienced, and for continuing to be innovative in delivering new programmes.
This report brings you the Foundation's achievements and challenges of the 2006-2007 year and reflects the constantly evolving nature of the organisation as it adapts to the economic and social realities of contemporary New Zealand.
Changes at the top
In September 2006 Directors farewelled Geoff Warne, Chief Financial Officer. After sixteen years in senior management with the Foundation, Geoff won the leading position in Leprosy Mission International and is now based in London. In January 2007 Gerard Rahman took over Geoff's position and he came to the Foundation with a background in international auditing. He has already proven himself to be a fast learner, strategic thinker and committed to improving the lot of others.
Also in January, after eight years serving the Foundation, Paula Daye tendered her resignation as Chief Executive in order to spend more time with her family and to pursue other interests. Following a rigorous executive search process that attracted forty-five applicants, the Board was fortunate to appoint Sandra Budd as Chief Executive. Sandra started work on 16
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July 2007. Sandra brings to the Foundation a 35-year background in Australasian health service and workforce development and has a proven record in advocacy for the rights of individuals to participate fully in society.
The Board is confident that Gerard and Sandra will take the Foundation into a new era of development. Geoff and Paula made extensive hand-over preparations for the transfer of institutional knowledge to their successors, and we are particularly grateful to Paula for continuing to lead the organisation until the end of the financial year and helping Sandra settle in before leaving with our best wishes.
It is tough going managing and directing non-profit enterprises like the Foundation. On top of the expected corporate management skills, the role calls for a rare combination of emotional and intellectual intelligence, humility, commitment, energy, and time to listen and learn the specifics of the field. Non-profit managers and Directors answer to a wide range of stakeholders. Under-capacity and low salaries are the norm. Accountabilities are stringent and politics is rife. The expectation is to do more with less, and the stress is great. For these reasons, organisations like the Foundation need great strategic discipline when allocating scarce resources.
Board membership
As a result of the 2006 elections for three of the nine elected directors, Jill Mills, Geoff Gibbs and Don McKenzie were returned for a second term; 2009 governing members cast votes, compared with 2063 in the previous year. The Foundation sincerely thanks candidates who stand for election to the Board. The time is coming when some founding Directors may wish to stand down.
In November 2006, the Board co-opted for one year Sam Chaffey, a Christchurch member, in order to extend the experience, perspectives and strategic management capabilities available to the Foundation. Sam brings to the Board proven business acumen, commercial savvy, and a unique and impressive set of professional and personal experiences.
Much Board work is done by Committees charged with monitoring governance policy, CE Performance, Stakeholder Relations, and Audit. The two latter Committees reviewed their terms of reference during the year. My thanks to the Chairs of these Committees.
External reviews
During the year under review, the Board undertook an effectiveness review externally monitored by Graeme Nahkies of BoardWorks International. The reviewer's comments and recommendations encouraged the Board to focus on strategic thinking, environmental intelligence, and to continue coming to grips with key governance issues including planning for the future.
Accolades were also received from the Institute of Chartered Accountants for the previous year's Annual Report; from Reader's Digest for being in the top five most trusted charities; and from Qantas Media Awards for accessible website design.
The Foundation's Annual Statements of Accounts and Service Performance for 2006-2007 received an unqualified report from the Foundation's auditors, BDO Spicers.
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Finance
I said in last year's column that the Foundation had sailed very close to the financial wind. This year, we again struggled. Good news included receiving a record level of bequests. (Our CFO provides details on page 43). But this year we also determined that the Foundation must make significant changes in how we provide services to remain sustainable. Failure to do so could result in a $10 million annual gap by 2020 between the cost of providing services and the level of funding that we can realistically attract from the public, Government, sponsors, etc. The charity sector must also consider the long-term impact of the "reverse mortgage" trend, in which many older New Zealanders are living off the equity in their homes. This may well reduce the ability of their estate to donate to charities.
Forward planning
The 2004-2007 Strategic Plan concluded on 30 June 2007. The Plan was ambitious and very successful in transforming RNZFB governance, strategies and operations to meet today's expectations. The lessons learned over the past three years have spurred further innovation in the way services and supports are best delivered. In order to keep ahead, it is clear that the Foundation must, in consultation with stakeholders, constantly review its priorities in the light of research, evaluation and analysis.
Consultation and planning for the next three-year cycle neared completion in January 2007 and awaits review by the new Chief Executive and Board. As I said above, our costs are growing faster than income, a position that cannot be sustained. In the interim, Directors have developed 10 guiding principles for the 2007-2008 Business Plan.
Past year's achievements
The Chief Executive, Paula Daye and staff are to be warmly congratulated on the results achieved as measured against the business goals and targets set. The quantum of service delivered was undoubtedly affected by external constraints such as general salary increases, staff shortages and inadequately funded Government contracts for essential services. However, the vast majority of objectives were completed and where activities were not finalised, sound explanations for not doing so were given.
During the year steps were taken to improve the salary and leave provisions for many Foundation staff. Work continues on a remuneration strategy and a performance development system that will uphold the Foundation's core values of being member-centred, learning and evidence-driven, a good employer, an organisation committed to continuous improvement, and aimed at long-term sustainability.
Service reviews were initiated into a centre-based skills and information programme for new members, volunteer services, property utilisation, and the distribution of talking books.
The accomplishments outlined in this report would not have been possible without the extraordinary generosity of the New Zealand public in giving money and voluntary time to the Foundation's cause. The RNZFB is seen as a trusted charity working in the public interest and is very keen to maintain that reputation.
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Right to read
It is reliably estimated that less than 5 percent of the world's printed material is accessible to the print impaired. The barriers are cost, copyright law, format and availability. Since 1937, the Foundation has had a proud record of making voice recordings of books available to members on disc and tape that are unabridged and expertly narrated. The eyes of the world are now on a brave Foundation project headed by Mary Schnackenberg and Clive Lansink, Foundation members, aimed at delivering books via the internet to blind readers who have no knowledge of computers. Simplicity of operation is the key. The project, which requires specialised players, will conform to standards agreed by a 14-nation consortium concerned with the technical rules governing digital access to information. Proceeding with this technically complex project will depend upon an independent external review.
Right to education
The inclusion of blind and low-vision students in mainstream education continues to be compromised by State policy on Special Education and spending priorities. The Foundation supported the united blindness sector led by Parents of Vision Impaired NZ in meetings with the Minister of Education in August 2006 and June 2007 aimed at resolving long-standing and well-understood barriers to effective learning and parent support. Anomalies in the education system are an injustice to vulnerable students and reflect poor "duty of care". Society should be very concerned about such trends.
Conclusion
Notwithstanding what science says about the place of vision in everyday life, these pages will make it clear that with the right mindset, and the right help and expertise, ordinary people with low or no vision can live extraordinary lives.
Don McKenzie
Chairman
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Directors as at June 2007:
Don McKenzie (Chair), Auckland.
Mr McKenzie is a part-time physiotherapist awarded an OBE in 1981 for services to physiotherapy and blind people. He has over 50 years active involvement with the Foundation, including serving as Chairperson from 1980-1992 and 2003 to the present. Mr McKenzie is a trustee of BLENNZ, the Blind and Low Vision Education Network New Zealand.
Dr Geoff Gibbs (Deputy Chair), Auckland.
Dr Gibbs began his career teaching at Homai College, after receiving a specialist degree in education and rehabilitation of the blind. He served as the Foundation's CEO from 1977-1997 and is currently an international consultant in the field of blindness and a Life Member of the World Blind Union. He is now on both the Asia Pacific Regional Board of the WBU and the Executive Committee of the parent body. He was awarded an ONZM in 1999.
Linda Beck, Christchurch.
Ms Beck is a lawyer specialising in employment and human rights law. Ms Beck is an active member of several community activities, was a trustee of the Foundation for the Blind and has ministerial appointments to the ACC Law Reform Advisory Group and the Human Rights Advisory Council. She was awarded an MNZM in 2006.
Dr Neville Bennett, Christchurch.
Dr Bennett holds a PhD in economics and was a lecturer at Canterbury University. He is deputy chair of the Riccarton-Wigram Community Board, a trustee of NZ Universities Superannuation Scheme and is also a columnist in economics and social change for the National Business Review. He is married and has four children.
Sam Chaffey, Christchurch.
Mr Chaffey has a Bachelor of Commerce Degree and founded the visual communications company Truescape Ltd in 1995. He holds directorships in two private companies, directs his own consultancy company and is an advisory board member of the Christchurch Polytechnic Institute of Technology.
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Geraldine Glanville, Auckland.
Ms Glanville is a retired business systems analyst, and since retirement has been an active advocate on blindness issues through her local and national leadership roles with the Association of Blind Citizens of New Zealand. She has been a member of the Board of the Foundation since 1995.
Dr Jonathan Godfrey, Palmerston North.
Dr Godfrey holds a PhD in Statistics. One of the few blind people in New Zealand to gain a doctorate, he now lectures at Massey University. Dr Godfrey also serves on a variety of committees for other organisations within the blindness sector and the wider community.
Jason Hollingworth, Auckland.
Mr Hollingworth is a qualified chartered accountant. He is chief financial officer and company secretary of Sky Network Television and has lectured on managerial finance at the University of Canterbury's MBA programme.
Jillian Mills, Feilding.
Mrs Mills is a full-time secondary teacher who is presently teaching ESOL, Social Studies, Tourism and Special Needs. She is vision impaired and a founding member of the Feilding Community Committee.
Dr John White, Auckland.
Dr White has a PhD in Chemistry and, prior to retiring in 1999, was Director of the University of Auckland's computer centre. He is currently Chairman of the Board's Stakeholder Relations Committee. He is also a member of the Auckland Astronomical Society Council.