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The Royal New Zealand Foundation of the Blind has a formal Constitution that was specifically created by the Foundation and adopted in 2003.

Governance

The Constitution can be altered by members without legislative amendment or parliamentary approval. It defines the aims and powers of the organisation, who is eligible for membership, the role of the Board of Directors, voting rights, and financial and reporting requirements. The Constitution and a plain English version are on the website at www.rnzfb.org.nz/aboutus/constitution

The work of the Foundation is also informed by The New Zealand Disability Strategy - a framework for changing New Zealand from a disabling to an enabling society.

The Board of Directors

The Board of Directors has overall responsibility for and is the governing body of the RNZFB. The Board meets a minimum of five times a year. Its governance role focuses on the wider issues of organisational purpose and long-term sustainability. Tasks include setting and monitoring strategic direction and Board-level policies.

The Board works in close partnership with the Chief Executive to ensure that its objectives are achieved and that policies are implemented. It ensures that the Chief Executive is supported and resourced to carry out her responsibilities.

Between them, Board Directors have long-standing expertise in, and commitment to, the fields of blindness and low vision, plus financial qualifications and governance experience.

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Electing Board Directors

The Board of Directors has nine members. Full (governing) members elect eight Directors. Associate members (individuals who do not meet the eligibility criteria for membership but who support and participate in achieving the Foundation's objectives) elect one Director.

At the Board's discretion, two further members may be co-opted for their particular expertise. This year, Sam Chaffey was co-opted to the Board for a 12-month period. As an internationally successful blind business entrepreneur, his acumen, commercial and unique professional experience complement perspectives available to Directors (see his profile on page 12).

The Constitution provides for a three-year electoral cycle. At the Foundation's AGM in November 2006, the terms of three directors expired. All three - Don McKenzie, Geoff Gibbs and Jillian Mills - were re-elected. In all, six candidates stood for election.

Sustaining Directors' work

In recognition of the many hours they contribute, Board Directors are offered a modest annual fee. The Chairman is entitled to $6000, the Deputy Chairman $3750 and other Board Directors $3000.

Evaluating the Directors' performance

Every two years the Board undergoes a self evaluation moderated by an external reviewer as part of its continuous improvement philosophy. The Policy Committee and a governance development group have taken the 2006 evaluation and review comments and are working on ways to make Board business more effective and streamlined.

Updates to the Register of General Interests

The Board is required to hold and update a Register of General Interests of Directors' involvement in other organisations. This register keeps all such relationships transparent, minimising the potential for a conflict of interest. The full Register of General Interests can be requested from the Secretary of the Board. Changes reported in Directors' interests in the 2006-2007 year were:

Linda Beck

Board Member of Workbridge
(withdrawn on 22.06.07)

Dr Neville Bennett

Director of Socrates Fund Management
(declared on 25.08.06)

Sam Chaffey

Declared the following interests on 27.04.07:

Executive Director of Truescape Ltd

Director of Shoveller Projects Ltd

Governing Director of S2 Ltd

Director of Xports Oceania Ltd

Vice Chairman of Christchurch Polytechnic Institute of Technology CAD Advisory Board

Dr John White

Trustee of St Anne's Trust
(withdrawn on 27.04.07)

Board Committees at work

The Board delegates a number of its functions and powers to four committees.

These are the: Audit, Policy, Stakeholder Relations and CE Performance Development Committee.

Audit Committee

Members: Dr Neville Bennett (chair), Sam Chaffey, Dr Geoff Gibbs, Dr Jonathan Godfrey, Jason Hollingworth, Don McKenzie.

In the past year the committee considered investment policies, reporting against business objectives and the development of longer term and clearer business planning and reporting models. The audit committee charter was also reviewed during the year to ensure that it reflects best practice.

No. of meetings: five

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Policy Committee

Members: Geraldine Glanville (Chair), Linda Beck, Dr Geoff Gibbs, Dr Jonathan Godfrey, Dr John White, Don McKenzie.

This committee is responsible for developing and updating governance policies to reflect current Foundation strategy and to provide guidance in best practice principles and processes for the Board's own operations, and for ensuring that all such policies are accurately recorded in the Board's policy manual. It also monitors Board conduct to ensure conformity with these Board-level policies and explores ways to enhance Board effectiveness through regular performance evaluation and training. In the past year, many of the conclusions from the most recent Board evaluation have been considered and their recommendations implemented.

No. of meetings: one

Stakeholder Relations Committee

Members: Dr John White (chair), Linda Beck, Don McKenzie, Geraldine Glanville, Jillian Mills.

This committee is responsible for encouraging and promoting the exchange of information and perspectives between the Foundation and its internal stakeholders (members, consumer organisations and community committees). It fosters constructive relationships and monitors stakeholder feedback. Over the past two years, the committee has met with representatives of all consumer organisations. This allowed for greater recognition of and appreciation for the work undertaken by each organisation.

No. of meetings: five

CE Performance Development Committee

Don McKenzie (Chair), Dr Geoff Gibbs, Geraldine Glanville and Jillian Mills.

This committee is responsible for all aspects of the Chief Executive's relationship with the Board, for recruiting a CE when required and initiating an annual performance development plan. The committee reviews, discusses and amends aspects of this agreement, and provides an informal forum for discussion of issues concerning working relationships between the Board and the CE.

A new CE was recruited this year and took up the position in July 2007.

No. of meetings: one

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Meeting attendance for 2006-2007

Director	Board meetings	Audit Committee	Policy Committee	Stakeholder Relations Committee	CE Performance Development Committee
Don McKenzie	6/6	5/5	1/1	5/5	1/1
Geoff Gibbs	5/6	4/5	1/1	-	1/1
Linda Beck	5/6	-	1/1	4/5	-
Neville Bennett	6/6	5/5	-	-	-
Sam Chaffey	4/4	3/3	-	-	-
Geraldine Glanville	6/6	-	1/1	5/5	1/1
Jonathan Godfrey	6/6	3/3	1/1	-	-
Jason Hollingworth	5/6	3/5	-	-	-
Jillian Mills	5/6	-	-	4/5	1/1
John White	6/6	-	1/1	5/5	-

Managing our organisation

The Foundation is managed by a CE, three direct reports and heads of the six divisions (see page 68). Its property assets are managed by the Bledisloe Estate Trust.

Bledisloe Estate Trust

The Bledisloe Estate Trust is the Foundation's property investment, development and management subsidiary. Its purpose has been to redevelop and manage the valuable 2.6 hectare block of land in Parnell, Auckland that the RNZFB has owned for more than 100 years.

What began as a school, sheltered workshops, hostels and offices has transitioned into the Foundation's Auckland offices, with the rest of the property being redeveloped from 1990.

A high-quality medical centre, retail shops, restaurant, café, public library, language school and most recently a private school called Parnell College have been built on the grounds.

Other than the college building, which is owned by the Academic Colleges Group, the entire property is owned by the Foundation and worth in excess of $60m. Net returns are used to part fund member services throughout the country and to repay debt.

The Bledisloe Estate Trust worked on the design of the Foundation's Fale Kotuku house in 2006 that delivers services to Māori and Pacific Islands members from the BLENNZ-Homai campus in Manurewa, south Auckland.

Property strategy

With staff changes at the Foundation, the Trust has played a greater role in assisting the Foundation to manage their properties. The Trust is assisting the Foundation with their property strategy, and in completing the construction of the new Guide Dog Breeding Centre and redevelopment of school buildings of the Blind & Low Vision Education Network of NZ (BLENNZ) at Homai.

The Trust this year produced an operating

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surplus in excess of $1 million for the first time and a significant growth in the Capital Value of the site, albeit the majority of this is in land value.

The rates case was completed this year. While the Foundation has traditionally been exempt from paying rates on its property, the Auckland City Council decided, following an overhaul of Rating law in 2002, to charge rates on the parts of the Parnell site that are commercially leased rather than used for Foundation business. The Foundation took the case to the High Court. After winning in the High Court, the Appeal Court overturned the decision and the appeal was upheld in the Supreme Court. While now resolved against us, there is no immediate effect to the value of the site or to the estate's cashflow. Eventually, the decision will affect rental income and value growth.

There were no changes to the members of the Board of Trustees.

Leadership with vision

The Chief Executive professionally manages the organisation at all levels to ensure it meets the current and future requirements of its stakeholders and provides a high quality service to its members through development of strategy, leadership, resource management, reputation and relationship management, risk management and operations management.

In the transitional period until the draft Strategic Plan 2007-2010 is adopted, the Foundation is being managed on a set of 10 guiding principles (see box at right).

10 guiding principles

• life skills development
• adapting to sight loss
• widening the help available
• strategic alliances
• keeping abreast of technological advances
• effective lobbying
• a good employer
• a standard setter
• effective infrastructure
• reflecting the profile of the community.

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Internal and external auditing

The Ministry of Education commissioned a self review to be undertaken by the RNZFB of the Accessible Format Material Production and Delivery Service for blind and low vision children and young people in early childhood and school sectors. This self review was facilitated by an independent consultant approved by the Ministry of Education.

The three year internal audit plan programme adopted by the Directors continues to be followed by an internal auditor. This internal audit programme is based on the high-risk areas identified in a 2004 report by Ernst & Young and on regular internal control systems.

A framework for reviewing policies

A new framework for reviewing operational policies has been developed, to ensure that policies are updated in a continuous cycle. Seven policies, including a draft Equal Employment Opportunities policy, were reviewed in the past year.

Dealing with complaints

The RNZFB has a Complaints policy, which aims to resolve all complaints in a fair, fast, professional and understanding manner. Feedback from our members on the service we provide is a valuable means of continuously improving the quality of our services. Each issue of the members' magazine, Outlook, publishes the complaints policy and how to contact us, as a reminder. The majority of complaints received in the past year have been specific to a member of staff or a service, or about a process. The table below shows the trends over the past five years in complaints received and resolved.

Complaints	2002-2003	2003-2004	2004-2005	2005-2006	2006-2007
Received	34	30	34	23	31
Resolved	26	18	27	11	24
Source of complaints
members	24	20	20	16	18
volunteers	1	1	0	0	5
staff	0	1	1	0	0

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Sustaining the environment

In the transitional years from "For" the Blind to "OF" the Blind, the Foundation's resources have been focused on consultation, on addressing the gap between demand for services and resources and on recruiting skilled employees. While we have continued to strengthen the economic and people elements of triple bottom line reporting, we recognise that the area of environmental sustainability is one in which, to date, we have been lacking.

This year's report puts in place a statement of intent on those areas which we can reasonably report on in future. These are:

• Replacement of the Foundation's fleet using carbon lifecycle analysis in choosing replacement vehicles
• Monitoring usage and emissions of energy, including electricity, gas, petrol and diesel
• Promoting responsible use of water
• Promoting increased recycling and reduction of waste in our offices
• Continuing to take steps to reduce paper waste, which currently includes computer printers being set by default to double-sided printing.

To assess and reduce our carbon footprint, in the coming year we will look at existing environmental sustainability packages for businesses and assess their relevancy to this organisation, and the resources required to implement them.

Consulting with stakeholders

Consultation is fundamental to "walking our talk" as an organisation that is "OF" the blind. In the four years since the change to a progressive governance model, governance by and on behalf of members has grown from an enacted Constitution into an embedded culture. Increasing numbers of members are attending regional forums or focus groups and proactively contributing their views on vital issues and plans, including the Draft Strategic Plan 2007-2010.

The Foundation is strongly networked into a range of blindness-related organisations to ensure effective dialogue and genuine collaboration. These include consumer and member groups nationwide, and global organisations such as the World Blind Union, the DAISY Consortium and the International Guide Dog Federation. More information about these organisations is at www.rnzfb.org.nz/links

Collaborating with consumer organisations

The Foundation serves a wide spectrum of interests and ages. Accessing all the different publics is a challenge met in part by the valuable work of consumer organisations.

The RNZFB formally recognises eight consumer organisations involved with blindness and low vision. (Note: Funding for Deafblind NZ was halted in April 2007.) They are listed on page 73 of this report. Full details of these organisations are on the Foundation's website at www.rnzfb.org.nz/consumerorganisations and in each issue of Outlook magazine.

These organisations address specific needs, such as those of kapo Māori or parents with vision-impaired children. Services they provide are primarily advocacy, information, social and peer support. Up to 90 percent of these activities are funded by the Foundation.

The Foundation formally meets twice yearly with all consumer organisations at the "consumer consortium". Emerging from this year's meetings has been a movement to reorganise their structures in order to collectively participate in helping set the Foundation's future direction.

Spreading the word through community committees

There are 43 local and regional community committees right around the country,

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and they are comprised of members, volunteers and Foundation staff. The roles of the community committees include:

• Communicating to the Foundation the particular needs of members in their local community and enhancing the delivery of services
• Helping local members to access services, particularly those members in rural areas
• Offering social activities, peer support programmes, assisting with regional fundraising activities and raising public awareness.

Each committee enters into a memorandum of understanding with the Chief Executive, which outlines responsibilities on both sides. Community committees are a key forum where members can express their views and be heard. All committees are invited to comment on draft annual and strategic plans.

Keeping in touch with stakeholders

As an organisation of the blind in which social isolation, accessibility of information and mobility are key issues, the Foundation proactively promotes diverse, accessible means of maintaining regular contact with its members and other stakeholders. These include:

• A fully accessible website
• Outlook magazine in large print, audio, braille and email formats
• An annual report in regular print, large print, audio, braille and email formats
• The Telephone Information Service, offering a wide range of information including Foundation news and updates from the Board and Chief Executive; an ability to comment on issues; and a voting option for Board elections
• A wide range of email groups
• Twice-yearly gatherings of all consumer organisations
• Focus groups and regular regional forums
• National roadshows for issues of high importance, such as the strategic plan
• An AGM held in November
• Teleconferences and phone links
• Bequest Society quarterly lunches in four main centres.

Member focus groups

Focus groups have proven to be effective channels for the Foundation to listen to member feedback about services and issues. Sixteen focus groups were held in August and September 2006, with 130 members attending and offering their views.

Enhanced participation in strategic planning

Strategic plans guide the Foundation's work for three-year periods and are the most important documents about which the Foundation consults with members. A draft three-year strategic plan for 2007-2010 was conceived early September 2006. Regional forums in late September attracted 348 attendees. Key issues within the proposed plan were outlined and discussed and each forum was attended by the Chief Executive and/or at least one or two divisional managers plus a Board Director. The feedback was considered in finalising a draft that was circulated to stakeholders in all formats in November. The 48 submissions received by January were assessed by managers and the Board, but it was decided not to adopt a final plan until after the new CE had taken up her appointment and had input.

In the interim, a business plan for 2007-2008 was implemented, based on the 10 guiding principles listed on page 63.

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Sustaining our people

The success of the Foundation's mission to further the independence of blind, deafblind and vision-impaired New Zealanders depends greatly upon the personal dedication of our employees and the ongoing support of thousands of volunteers. The quality of services we offer is directly related to the skill and motivation of our staff. We aim to provide a flexible, team-oriented work environment that challenges employees to develop unique and personally rewarding careers.

Who we are

Of our approximately 320 employees at June 2007, 55 were new. The average age is 49 and the average length of time they have worked for the Foundation is seven years. During the year, 48 employees left, which is a 15 percent turnover. This turnover reflects the tight labour market and rising salaries for health and education sector workers.

Codes and standards

Employees' interaction with members is governed by a Code of Conduct. The code was developed in consultation with employees, and helps to protect staff as well as maintain professional standards of conduct.

In the delivery of professional services, the Foundation also complies with an external set of comprehensive and ever-developing health and disability standards, which protect employees.

Recruiting and retaining employees

Attracting and retaining employees in specialised disability areas remains the key challenge, particularly given the rise in state sector salaries in the past year.

This challenge is being addressed by the development of a new remuneration strategy, scholarship programmes and revised recruitment initiatives. Job advertisements have been redesigned to be more concise and visually reflect the organisation's values. Responses from candidates indicates this change is effective. However, at 30 June, the Foundation had approximatety10 percent of its positions vacant.

Vacant job positions continue to be advertised on the Foundation's website at www.rnzfb.org.nz/workopportunities and this coming year, career pathways within the Foundation will be profiled on the site, to encourage recruitment.

Addressing employee survey results

The employee survey conducted in 2005-2006 highlighted four main areas to improve on: salaries, better recognition of achievements, an effective performance management system, and employees feeling their feedback is taken into account. As a result, in this fiscal year we began to develop a remuneration strategy designed to help the Foundation provide packages that are more competitive in the marketplace and better reflect the value the Foundation places on its staff. In addition, a new performance management system was developed and trialled.

Valuing the contribution of volunteers

Volunteers have worked alongside paid employees to deliver member services since the RNZFB was founded in 1890. Volunteers fulfil a wide range of roles - visiting members, delivering talking book machines, providing transport to eye related appointments, supporting appeal collections and reading local information on the Telephone Information Service.

Each year around 1.5 million hours are volunteered, which contributes a conservative estimate of $15.7 million to the organisation. This figure equates to employing 823 people full time. The Foundation simply could not provide key services to members without volunteers.

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RNZFB Organisational Chart and Senior Management 2006-2007

Chief Executive, Paula Daye (reports to Board of Directors)

Research, Policy & Planning, Ruth Bijl (reports to Chief Executive)

Communications/PR, Bill Moore (reports to Chief Executive)

Human Resources, Emrich Neuhoff (reports to Chief Executive)

Technology, Employment and Awareness, Chris Inglis (reports to Chief Executive)

• Prevention & Awareness Initiatives
• Joint Activities with Prevention Groups, Eye Care Professionals, Associations & Consumer Organisations
• Industry Blindness Awareness Training
• Employer Awareness
• Employment Placement
• Adaptive Technology
• Braille Literacy & Awareness
• Environmental Design Consultancy
• Resthome Staff Blindness & Deafblindness Awareness Training

Adaptive Living, Helen McKenzie (reports to Chief Executive)

• Guide Dog Services
  • Breeding Services
  • Puppy Development
  • Kennel Services
  • Training & Production
  • Regional Guide Dog Mobility Instructors
  • Veterinary & Health Care Services
  • Adoption Services
• Children's Services
  • Needs Assessment
  • Goal Attainment & Service Evaluation
  • CFSW/Counselling
  • Developmental Orientation & Mobility
  • Developmental Adaptive Daily Living
  • Peer Support
  • Recreation & Sport
  • Deafblind
• Rehabilitation
  • Needs Assessment
  • Counselling
  • Orientation & Mobility
  • Adaptive Daily Living
  • Communications
  • Recreation & Sport
• Mana Kāpō
  • Needs Assessment
  • Service Co-ordination
  • Cultural Support
  • Blindness Awareness & Prevention
• Pacific Services
  • Needs Assessment
  • Service Co-ordination
  • Cultural Support
  • Blindness Awareness & Prevention
• Deafblind Services
  • Needs Assessment & Service Co-ordination
  • Advocacy & ongoing support
  • Communicator Guide Service

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Adaptive Support, Mary Schnackenberg (reports to Chief Executive)

• Library & Information Services
  • Library Distribution
  • Reference Library
  • Information & Advice
  • Acquisitions & Cataloguing
• Accessible Format Production
  • Audio
  • Braille & Tactile Graphics
  • Collage
  • DAISY
  • Accessible Information Consultancy
  • Accessible electronic text
  • Large print
  • Telephone Information Service
• Volunteer Services
  • Member Support
  • Telephone Information Service
• Financial Assistance
  • Sir Arthur Pearson Memorial Fund

Fundraising, Patrick Holmes (reports to Chief Executive)

• Direct Marketing Group
  • Direct Mail
  • Puppypal
  • Talking Books
• Regional Fundraising Group
  • Individual Gifts
  • Trusts & Foundations
  • Appeals
  • Local Events
  • Bequests
• Major Fundraising Group
  • Major Gifts
  • National Events
  • Corporate Sponsorship

Quality Assurance, Adrienne Henderson (reports to Chief Executive)

• Service Development
• Services Evaluation
• Service Standards
• National & International Benchmarking
• Privacy Officer
• Focus Groups
• Member Satisfaction
• Feedback and Complaints

Corporate Services, Chief Financial Officer, Gerard Rahman (reports to Chief Executive)

• Strategic & Policy Advice to the Board
• Financial Advice
• Financial Management
• Investment Management
• Estate & Trust Administration
• Internal Audit
• Secretary of the Board
• Equipment Services
• Administration
• Fleet Management
• Property
• Information Technology
• Accounts/CPU
• Telecommunications

Senior Management Team for 2006-2007

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Training our volunteers

The standard of service given by volunteers is managed by induction days and ongoing training. Induction days are compulsory for all volunteers, community committee members and new staff. These are based on a standardised curriculum that emphasises experiential, hands-on learning.

In the past year, 281 new volunteers were recruited and 264 volunteers were either trained or re-trained. Training also supports the personal development of our volunteers and enhances their experience of and satisfaction gained from volunteering.

Three cheers for 50 years

An outstanding quality of Foundation volunteers is their length of service. The table below shows how many volunteers have been recognised for being active in the Foundation ten years or longer. In the past year, Colin Browne reached 50 years of active service in the Wairoa Community Committee. During this time he was instrumental in setting up Print Disabled, an audio version of the local newspaper, and has helped well over 500 Foundation members in his local district.

Review of Volunteer Services takes shape

A 2005-2006 review of Volunteer Services made a number of recommendations, including new ways to involve volunteers, given the general trend towards shrinking numbers within New Zealand's volunteer environment. Following on from this review, a three-year service plan has been developed in consultation with a group of stakeholders and the volunteer coordinators, to develop the service. This report was presented to the Board in June, who agreed in principle to findings being implemented pending clarification around the role of volunteers.

Volunteers	2004-2005	2005-2006	2006-2007
Blind Week and Red Puppy Appeals	12,482	11,221	11,950
Volunteer Services and Community Committee members	2,278	2,120	2,187
Guide Dog Services volunteers	192	151	*203
Long-standing service certificates awarded	179	106	150

*The increase this year comes primarily from 35 guide dog boarders, who were omitted in error from last year's figures; and a small increase in puppy walkers and corporate volunteers.

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Awards to the Foundation and members

Awards gained in the past year particularly reflect the RNZFB's commitment to providing equal access to information for blind, deafblind, vision-impaired and fully sighted people.

• At the 2007 Qantas Media Awards, the RNZFB website won the Best Subscriber/Special Interest Website category. The judge said, "I was moved by what it offered; this was the digital age, the new media, embracing people who for so long have been excluded".
• For the third consecutive year, The NZ Institute of Chartered Accountants named the Foundation's annual report tops in two categories: Best Governance Reporting by a Service Organisation/Volunteer Sector; and Best Annual Report by a Service Organisation/Volunteer Sector. The annual report was praised for its presentation and clear conveyance of the Foundation's activities.
• At the Fundraising Institute of New Zealand (FINZ) Awards in 2006 the Foundation won Excellence for the "Guide Dogs Aren't Born They're Made" campaign and a certificate of Merit for the "We Need Dogs" campaign.
• Mary Schnackenberg, Divisional Manager Adaptive Support was awarded Companion of the New Zealand Order of Merit (CNZM) in the 2007 New Year's Honours list. Together with Clive Lansink, Mary pioneered the tape magazine service, the Telephone Information Service and is heading the world-leading pilot for distributing talking books via the internet.
• John Davis was awarded a Queen's Service Medal in the Queen's Birthday Honours in June 2007. John has been involved with the Tauranga Community Committee for 10 years. He started out as a volunteer driver, then became group co-ordinator.
• Steve La Grow, professor of Rehabilitation at Massey University, won the Lawrence E Blaha Award for orientation and mobility, the first time in its 40-year history that the award has been given to someone living outside the USA.

Profile: Chairman's Award Winner

Failing eyesight from Retinitis Pigmentosa has not stopped Doug Johnston, the 2006 RNZFB Chairman's Award recipient, from raising a family, having a productive career in the Public Service and leading by example. "More than 30 years ago Doug started losing his sight so he joined the Foundation to learn new skills and carry on his busy lifestyle. He is not the kind of person who lets limited vision get in the way of his love of life and commitment to public and community service. With his personal resourcefulness, positive attitude, fair-mindedness and a straight-forward approach, Doug is a leader in both his paid and voluntary work. He is someone I greatly admire," says Don McKenzie, RNZFB Chairman.

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