The midsize City of Orangeville funds an animal control program intended to minimize the danger stray dogs
Question:
The midsize City of Orangeville funds an animal control program intended to minimize the danger stray dogs pose to people and property. The program is under scrutiny because of current budgetary constraints and constituency pressure.
An animal control warden responds to each complaint made by citizens about dogs running loose. Approximately one in six complaints results in the capture of a dog. When a dog is caught, the warden must drive it to a kennel 20 miles from the center of the city. Donna’s Kennels, a privately owned animal boarding establishment, is under contract with the city to board, feed, and care for the impounded dogs. It is a no-kill shelter (i.e., it does not euthanize healthy animals), and dogs remain there until they are claimed by their owners or adopted.
Costs of Orangeville’s animal control program are as follows. The city employs two animal control wardens, a clerk, and a program director. The task of the wardens is to respond to complaints, drive to the site, search for the dog, and deliver it (if it is found) to Donna’s Kennels. The clerk is responsible for issuing licenses to dogs that are returned to their owners or are adopted, as well as tracking correspondence between Donna’s Kennels and the city. The clerk also tracks program statistics and provides support to the program director.
The city owns and operates two vehicles specially designed for impounding and transporting stray dogs. For $10 per dog per day, Donna’s Kennels provides shelter, food, and routine veterinary care. On average, 60 percent of impounded dogs are returned to their owners in seven days. The other 40 percent stay at Donna’s Kennels for an average of 14 days before being adopted.
Critics of the animal control program argue that it costs too much to drive to the distant kennel to deliver an impounded dog. They have suggested that the city convert a vacant building within the city limits into an animal shelter to save on transportation costs. Prompted by the need to cut the city budget and address the public outcry, city officials are reviewing the budget proposal for the animal control program and are looking for ways to reduce the program’s costs.
Required
a. Identify (1) the activities related to the animal control program, (2) the resources required for each activity, and (3) the cost drivers for each activity.
b. Based upon the information provided and consideration of the activities and cost drivers identified in part a, identify any costs that could be reduced.
c. Would conversion of the vacant building be cost-effective?
Step by Step Answer:
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely