DAYA COUNSELLING CENTRE: R

ESPONSE TO FUNDING CUTS

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ass discussion. The author does not intend to illustrate either e

ffective or

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o

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Version: 2021-01-12

In early October 2018, Rebecca Ma

chado, executive director of D

aya Counselling Centre (Daya), learned

that one of Daya's major funded-referral programs was planning

a significant change. Over the previous

few months, Machado and the board of directors had identified a

decline in requested service from clients

of the Ontario Works (OW) progr

am. The meeting confirmed that c

hanges were imminent.

Machado was concerned about the

impact of this change on Daya's

financial performance. The timing

could not have been worse. Machado and the board had been discu

ssing the feasibility of moving the centre

from its downtown location, and any negative impact on Daya's f

inancial performance could derail these

plans. In addition, Machado had been planning to approach the b

oard with a proposal to fund a new clinical

administrative support position to help her manage the centre's

growth. How could she ask the board to add

a new position to the budget if Daya continued to post a defici

t?

Machado needed a plan to present to the board at the October me

eting in three weeks. Her goal was to find

a way to close the deficit by year-end to allow for a new clini

cal administrative support position and for

relocation plans to continue.

DAYA COUNSELLING CENTRE HISTORY

In 1985, a group of church leaders envisioned opening a counsel

ling centre that would provide access to

affordable, quality counselling to those in the community who w

ould otherwise not be able to afford such

service. The group was confident about securing funding from th

eir parishes and other religious

communities to support operations

and to subsidize counselling

costs. By the end of 1985, the three

founders incorporated the London

Interfaith Counselling Centre

as a provincial non-profit organization and

applied for registered charity status with the Canada Revenue A

gency. The three founders became the

inaugural members of the board. They focused their energies on

securing seed money from various partner-

sponsoring churches and hiring t

he counselling centre's first s

taff member, who served as both executive

director and counsellor.

The centre began offering coun

selling services in the basement

of Bishop Cronyn Memorial Church, which

was located in downtown London. Demand increased quickly as the

centre gained awareness, so a second

therapist was hired. Over the years, the board and staff comple

ments continued to grow. In 1994, the

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5

Page 2

9B20B003

counselling centre applied for United Way funding and received

a one-time Bereavement Counselling

Service Project Grant. By 1999, the centre began receiving ongo

ing United Way grant support. That same

year, the centre became aware o

f an opportunity to become a ten

ant in a new social services centre building.

The original church basement spac

e could no longer accommodate

client and staff needs, so the centre

moved from its original location to its current location, at 14

1 Dundas Street in downtown London. The

counselling centre continued to grow and evolve its services, a

nd in 2008, officially changed its name. The

new name, Daya, which was derived from the ancient Sanskrit lan

guage, meant "compassion." Daya

continued to receive funding fro

m its original partner-faith co

mmunities; however, the partners were

becoming less involved in centr

e governance, and the proportion

of funding from this source decreased.

Daya's vision was for mentally well people to make healthy comm

unities by fostering a culture of

wholeness, health, and mental wellness through counselling and

education. Its values included client

growth, connectedness, excellence, inclusiveness, and stewardsh

ip. The centre offered individual, couple,

and family counselling to individuals 16 years of age or older.

Counsellors helped clients address mental

health issues such as depression, anxiety, addiction, abuse or

trauma (current or historical), interpersonal

or family conflict, adjustment

, loss, transition, and complicat

ed grief.

1

MENTAL HEALTH CHALLENGES

The term "mental illness," which covered a wide range of disord

ers, could significantly and severely alter

an individual's behaviour although the effects could also be mi

ld. Appropriate treat

ment and support were

essential to help a sufferer achieve recovery.

2

At any time, almost 20 per cent of Canadians were suffering

from a mental illness, and nearly h

alf of all Canadians would e

xperience a mental illness in their lifetime.

3

Individuals with mental illness were much more likely to have a

disability and be unemployed, with rates as

high as 70 to 90 per cent unemployment for people with highly s

evere mental illness.

4

Low income Canadians

were three to four times more likely than high income people to

have poor to fair mental health.

5

According

to a report on the quality of mental health and addictions serv

ices in Ontario, only 7 pe

r cent of all healthcare

spending was directed to mental i

llness, despite accounting for

10 per cent of dise

ase in the province.

6

CHANGE IN PROVINC

IAL GOVERNMENT

On June 7, 2018, the Progressive Conservative Party of Ontario

(PC) was elected, and party leader Doug

Ford became premier of the province. The PC won a majority gove

rnment, securing 76 of the 124 seats in

the legislature with its "For the People" campaign platform,

7

which identified five priorities: cutting taxes,

finding savings in hydro administration costs, cutting business

bureaucracy, ordering a line-by-line audit of

1

"About Daya," Daya Counselling

Centre, accessed February 20, 2

019, www.dayacounselling.on.ca/about-daya.

2

"Mental Illness and Addiction: F

acts and Statistics," CAMH [Ce

ntre for Addiction and Mental Health], accessed February 22,

2019, www.camh.ca/en/driving-change/the-crisis-is-real/mental-h

ealth-statistics.

3

Paul Smetanin, Carla Briante, David Stiff, Sheeba Ahmad, and M

inhal Khan,

The Life and Economic Impact of Major Mental

Illnesses in Canada: 2011 to 2041

, December 2011, accessed November 25, 2019,

www.mentalhealthcommission.ca/sites/default/files/MHCC_Report_B

ase_Case_FINAL_ENG_0_0.pdf.

4

Steven Marwaha and Sonia Johnson, "Schizophrenia and Employmen

t: A Review,"

Social Psychiatry and Psychiatric

Epidemiology

39, no. 5 (2004): 337-349.

5

Farah N. Mawani and Heather Gilmour

, "Validation of Self-Rated

Mental Health,"

Statistics Canada: Publications

21, no. 3

(2010), accessed November 25,

2019, www150.statcan.gc.ca/n1/pub

/82-003-x/2010003/article/11288-eng.htm.

6

Susan Brien, Louise Grenier, Michal Kapral, Paul Kurdyak, and

Simone Vigod,

Taking Stock: A Report on the Quality of

Mental Health and Addictions Services in Ontario

2015, accessed November 25, 2019,

www.hqontario.ca/portals/0/Documents/pr/theme-report-taking-sto

ck-en.pdf.

7

"For the People: A P

lan for Ontario," On

tario PC, accessed Mar

ch 26, 2019, www.ontariopc

.ca/plan_for_the_people.

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Use outside these parameters is a copyright violation.

6

Page 3

9B20B003

government spending, and increasing healthcare spending. On the

healthcare spending front, the plan called

for an end to so-called "hallway healthcare" by creating 15,000

new long-term care beds over the next five

years, and adding CA$3.8 billion

8

in new support for mental h

ealth, addictions, and housing.

9

Throughout the election, campai

gn critics were concerned about

how the PC would be able to meet its

campaign promises with

the proposed combina

tion of reduced taxe

s and increased spending. Zack Taylor,

an assistant professor of political

science at Western Universi

ty commented that, "If they do lead on the tax

cuts, and they just don't have the money to spend, and they don

't want to run bigger deficits, then those

very expensive spending commitmen

ts aren't going to happen."

10

In late July 2018, news broke that the PC government was rollin

g back mental health funding that the

previous government had announced before the election. The PC g

overnment cancelled previously

promised funding of $2.1 billion over four years and replaced i

t with a plan to spend $1.9 billion over 10

years.

11

Machado and the board were concerned that this announcement wa

s only the beginning of a new

reality that would mean less funded support for its most vulner

able clients.

When asked how changes in political support and related challen

ges impacted Daya's efforts to achieve its

vision of mentally well people making healthy communities, Sall

y Cozens, one of the centre's counsellors,

had this to say:

The deep poverty experienced by clients who are unable to work

creates barriers to their access to

community events, volunteer and educational opportunities. Trav

el costs, lack of appropriate clean

clothing (laundry costs money), no one to supervise minor child

ren (for free), and social anxiety about

their own value prevent people from taking advantage of the opp

ortunities to be part of their community.

CENTRE OPERATIONS

Clients and Service

Daya served clients that were referred to and funded by various

employment partners and programs such

as OW, which was funded by the provincial government. Daya also

offered subsidized service directly to

clients who would not otherwise be able to access counselling.

The United Way allocation, partner-faith

communities' donations, receipts from other grants, and contrib

utions from full-fee client payments

supported subsidized service sessions. For subsidized clients,

the cost of counselling was adjusted on a

sliding scale based on income (see Exhibit 1). Individuals whos

e total income fell below Daya's

predetermined low income cut-off level were not required to pay

anything for their session but would be

invited to contribute something (usually between $1 and $25 per

session), based on their desire and sense

of ability to contribute. Some clients were able to use workpla

ce benefits programs to fund sessions, but

others paid out of pocket and the full fee was $115 per session

.

In fiscal year (FY) 2017-18, 1,

446 individuals, couples, or fam

ilies were offered 8,714 counselling

appointments at Daya. Of those a

ppointments, 43 per cent were f

unded by a referring partner program, 40 per

cent were fully or partially s

ubsidized by donations or grants,

and the remainder were full fee-paying clients.

12

8

All currency amounts are in CA$

unless otherwise specified.

9

"For the People," op. cit.

10

Maham Abedi, "PCs Win Ontario ElectionHere's a Look at the Pr

omises Doug Ford Made," Global News, June 8, 2018,

accessed March 26, 2019, https://globalnews.ca/news/4261079/dou

g-ford-pc-ontario-election-win-promises.

11

Robert Benzie, "Tories Blasted for $335M Cut in Planned Spendi

ng on Mental Health,"

The Star

, July 26, 2018, accessed April 3, 2019,

www.thestar.com/news/queenspark/

2018/07/26/tories-blasted-for-3

35m-cut-in-planned-spendi

ng-on-mental-health.html.

12

Daya Counselling Centre: 10 Years,

Annual Report, 2017-2018,

September 2018, accessed February 20, 2019,

http://dayacounselling.on.ca/wp-

content/uploads/2018/09/Annual-

Report-2018-FINAL.pdf

For use only in the course Introduction to Managerial Accounting at Northern Alberta Institute of Technology taught by Audrey Kotelniski CPA CMA MBA from June 01, 2021 to August 02, 2021.

Use outside these parameters is a copyright violation.

7

Page 4

9B20B003

Daya's clients sought counselling

for various needs. According

to data collected for

its 2017-18 annual report,

the centre found that 40 per cent

of clients were working to he

al the effects of trauma, abuse, or neglect.

Approximately 56 per

cent of clients requ

ested support in addre

ssing depression, anxiet

y, or other diagnosed

mental health conditions. Support in the wake of bereavement wa

s an issue for 20 per ce

nt of clients, and 59

per cent of clients identified p

roblems in their

relationships

as the focus of counselling sessions.

Funding and intern capacity were the two factors that determine

d how many subsidized counselling sessions

would be available each week. Individuals seeking subsidized se

rvice were asked to call or email reception

on the first Monday of every week to determine if a session was

available. Inevitably, demand outnumbered

supply every single week. If a session was available, the indiv

idual would be moved to the intake stage.

Individuals who were seeking an a

ppointment through a funded re

ferrer or who could cover the costs (out

of pocket or through health ben

efits) were moved to the client

intake stage right away. The intake process

was usually conducted over the

phone and took approximately 15

minutes. The next stage in the process

was the client-counsellor assignment, which was based on a comb

ination of client issues, counsellor

expertise, and a match in scheduling. The centre offered counse

lling sessions from 8:30 a.m. to 8:00 p.m.

Monday through Thursday, and 9:00 a.m. to 5:00 p.m. on Fridays.

With the number of offices it had

available, the centre was able t

o offer a maximum of 325 counse

lling appointments per week. Since April

2018, Daya was averaging approximately 215 appointments per wee

k.

In FY 2017-18, Daya reduced wait

times for counselling services

from 50 days to 28 days for subsidized

clients. The average number of p

eople waiting to be matched wit

h a counsellor at any given time was

reduced from approximately 80 to 40. This achievement was made

possible by adding services provided

by interns, increasing payments by more full-fee clients that s

upported subsidized service, and funding from

the University Students' Council's Charity Ball at Western Univ

ersity.

Staff, Volunteers, and Governance

Daya's permanent staff consisted of an executive director, a bo

okkeeper and office manager, a full-time

receptionist, and part-time reception support staff. Daya also

had approximately 20 counsellors who

delivered counselling services on a contract basis. The centre

had been supporting a supervised internship

program from early on. Students from relevant master's level pr

ograms, or graduates from a master's level

program could gain practical experience under the close supervi

sion of experienced counsellor-supervisors.

The program had evolved over the years. In FY 2017-18, seven in

terns joined Daya for terms ranging from

six to eight months. These inte

rnships were unpaid, as was stan

dard in the sector; however, Daya

compensated its counsellors for the training and support provid

ed to the interns. With h

elp from the interns,

the centre was able to increase the number of counselling sessi

ons it offered. Machado estimated that

counsellors and interns booked between two and 28 appointments

per week and that interns provided 561

counselling sessions in FY 2017-18. Daya also benefitted from t

he work of a dedicated team of volunteer

reception staff, who supported the centre during both day and e

vening shifts. Volunteers allowed reception

support staff to assume other duties on projects, as needed.

The executive director reported to an 11-member board that prov

ided governance through strategic

planning, policy creation, and re

gular policy reviews. The exec

utive director was also a non-voting but full

member of the board. To facilitate the functioning of the board

, various standing committees were

established, including an execu

tive committee; a finance, audit

, and fund-development

committee; a board

development committee; and an outreach and communications commi

ttee. Board members were selected

based on their representation in the community, commitment to t

he organization's purpose, and professional.

Page 5

9B20B003

area of expertise. Board members relied heavily on Machado for

her expertise and willingness to take

action. Each member served on at least one standing committee a

nd attended regular meetings. No plans

were in place to change the focus or activities of the board to

an operating or fundraising capacity. Machado

was an ex-officio member of every committee and attended at lea

st 26 board and committee meetings.

THE EXECUTIVE DIRECTOR

Machado attained an undergraduate degree in psychology with a m

inor in thanatology and a master's degree

in counselling psychology before becoming a registered psychoth

erapist. Her past experience included

bereavement service coordinator at the Canadian Mental Health A

ssociation, staff consu

ltant and therapist

at the Women's Rural Resource Centre, and contract faculty memb

er at various campuses of Western

University. She also had experience running her own private the

rapy practice. Machado started working at

Daya as an intern in 2008 before moving into the role of intake

coordinator and contract counsellor in 2009.

Three months after completing her internship, she began providi

ng clinical administrative support under

the supervision of the previous executive director as an extens

ion to her role. When the executive director

position became vacant in January

2016, Machado was appointed i

nterim manager. In April 2016, she was

eventually hired as executive director.

Machado was excited

about the challenge of

leading the centre,

which she valued and respected. To better

prepare her for the financial management tasks of her new role,

the board provided funding to support her

enrollment in a course on finance for non-profit management, wh

ich she completed in the spring of 2017.

Machado summarized her perspectiv

e on combining clinical expert

ise with financial stewardship:

Coming into this role with a clinical background brings both st

rengths and challenges. On the one

hand, I had a lot to learn about the financial management of an

organization this s

ize. On the other

hand, I never forget that this is about people and servicethat

we need to be fiscally responsible

in order to offer service, but also that a particular dollar is

never more important than the person

whose life might be changed by the service it pays for.

THE ONTARIO WORKS

(OW) PROGRAM

The social assistance program OW was funded by the provincial g

overnment's Ministry of Children,

Community, and Social Services. The program was designed to hel

p people who were in temporary

financial need by offering both financial and employment assist

ance. In most cases, a client would be

required to agree to participate in employment assistance activ

ities to be eligible for financial support.

Employment assistance activities could include the requirement

to participate in counselling sessions. In

many cases, mental health issues prevented OW clients from secu

ring and maintaining employment;

therefore, counselling sessions were funded to help overcome th

is barrier. To be eligible for the program,

an individual had to reside in Ontario, demonstrate a financial

need (i.e., the individual's household did not

have sufficient resources to meet basic living expenses), and b

e willing to make reasonable efforts to find,

prepare for, and keep a job.

13

The City of London was the consolidated municipal service manag

er responsible for administering the OW

program to residents in the city. The number of cases managed b

y the city had risen from 11,796 in

December 2016 to 12,320 in March 2017, for an increase of 4.9 p

er cent.

14

Machado reported that the centre

served 96 OW clients through 180 appointments in September 2018

.

13

"Ontario Works," Ministry of Children, Community and Social Se

rvices, accessed February 20, 2019,

www.mcss.gov.on.ca/en/mcss/progr

ams/social/ow/index.aspx.

14

"Social Assistance in Ontario:

ReportsOntario Works," Ministr

y of Children, Community and Social Services, accessed

February 20, 2019, www.mcss.gov

.on.ca/en/mcss/open/sa/trends/ow

_trends.aspx.

9

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9B20B003

THE CURRENT SITUATION

Under Machado's leadership, Daya increased the number of client

s served by the centre and of counsellors

available on contract; therefore, the required budget also incr

eased. By the end of FY 2017-18, the centre

had posted a surplus of approximately $32,000 and had been able

to allocate $50,000 to a reserve fund. The

centre was growing, and its financial performance was strong an

d stable (see Exhibits 2 and 3).

Success had come at a personal cost of time and energy for Mach

ado. According to her employment

contract, the executive director was required to work at least

37.5 hours per week plus some evenings,

weekends, and overtime hours to accommodate activities such as

attending board meetings and representing

the organization at public events. Over the last two years, Mac

hado estimated that she had worked an

average of 45 hours per week.

In addition, Machado shared a sus

tainability challenge with the executive

committee: "In addition to expanded hours most of the time, the

re is an ongoing challenge in having no

overlap/direct support with some responsibilities, meaning that

any time off must be made up, as no one

else covers those tasks."

To manage this challenge, Machado wanted to propose to the boar

d that a new clinical administrative

support position be added. The new

staff member would manage th

e assignment of clients and the reporting

and monitoring of funding sour

ces as well as provide some board

committee support. The person hired for

this part-time position could work seven hours per week at a ra

te of $25 per hour, starting January 1, 2019,

for a total of 13 weeks for the remainder of FY 2018-19.

In May 2018, Machado and the board had noted that referral reve

nue from the OW program was falling

short of the monthly target. Th

e approved FY 2018-19 budget exp

ected revenue of $240,000 from the OW

program. However, by the mid-point of FY 2018-19, the revenue w

as reported at $104,105, approximately

$16,000 short of the budgeted amount. Overall, the centre was r

eporting a $9,024 deficit for the period

ending September 30, 2018 (see Exhibits 4 and 5).

The existing OW program funded 12

sessions per funded client, w

ith the option to access an additional 12

sessions, if recommended by the counsellor. Effective January 1

, 2019, proposed changes would see the

maximum number of funded sessions capped at eight, with the pos

sibility of only four additional sessions.

CLOSING THE DEFICIT

Machado was unsure what would be the full impact of changes to

the OW program on the centre's financial

performance. To determine the e

xpected deficit, Machado planned

to prepare an updated statement of

operations forecast. Given the changes to the OW funding model,

she expected total funding from this

source to reach 75 per cent of the amount originally budgeted.

Donations from partner-faith communities

were also expected to fall $2,00

0 short of the budgeted amount,

and contributions from grants and

foundations would likely only be h

alf of the original budgeted.

On the bright side, client fees were trending

higher than budgeted. At this point, Machado expected client fe

es to exceed the budgeted amount by 30 per

cent. Finally, on the expenses front, counsellor payments were

expected to be $10,000 less than the

budgeted amount to reflect a lower level of service to subsidiz

ed clients. However, peer and intern

supervision rates would likely

be at least $6,000 higher than b

udgeted. Machado also noted that all

professional fees were accounted for.

After preparing the updated for

ecast, Machado would know what p

rojected deficit amount would have to be

addressed. She initially identif

ied three options to do this, i

ncluding hosting a fundraising or special event,

searching and applying for add

itional grants, and increasing th

e full-fee client rates

or capacity, or both.

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9B20B003

Fundraising Event

The last time Daya had organized a fundraising event was in 201

2. The event was a curling bonspiel that

ran for six years and raised approximately $10,000 each year. M

achado estimated that it would take a full

team of approximately 10 to 15 dedicated volunteers working wee

kly to organize and run another similar

scale event. Machado knew her staff had no extra capacity to ad

d fundraiser planning to job descriptions;

therefore, any planning and executing hours would have to be co

vered by the board members or a team of

new volunteers, or incurred as a

cost of hosting the event.

An alternative to hosting a fundraising event was holding a spe

cial guest speaker or workshop event. In

2017, Machado had experimented with hosting both one-day and tw

o-day professional development

workshops, as well as an evening speaker series on a relevant t

opic for counsellors.

Daya counsellors were

able to attend the events at a discounted price, but counsellor

s from other agencies and practices were

required to pay a competitive registration fee. Each event attr

acted approximately 30 to 40 participants and

netted anywhere from $500 to $1,000 after covering the costs of

the venue and speaker. Feedback from

participants was positive, with many of them approving of the l

ocal professional development venue and

the reasonable cost. These events took Machado approximately ei

ght hours each to organize.

Additional Grants

Finding and applying for grants

from various government agencie

s, corporations, foundations, and other

sources was a time-consuming process for two main reasons. Firs

t, an organization had to be found that

was granting funds related to Daya's work. Granting bodies alwa

ys had specific criteria for each grant

award. Being unable to meet just one of the criteria items woul

d make the centre ineligible. Second,

someone would have to prepare the grant application, which usua

lly involved a written component that

explained why the centre was an appropriate beneficiary of the

funds, how the funds would be used, and

the impact that would result. Most grant applications also requ

ired the inclusion of a detailed budget to

show how the funds would be spent

. Grants varied in amount and

reporting requirements. Some grants had

regular application dates; oth

ers were announced at random time

s throughout the year.

In recent years, Daya had been successful in securing grants fr

om various organizations, including a $5,000

grant from Shoppers Drug Mart's "LOVE. YOU" program. That grant

funded 100 sessions in a secure

shelter environment with 24 wome

n who had experienced violence.

Daya also received a $15,000 grant

from Westminster College Foundation to fund single-session quic

k-response appointments.

Machado had considerable experi

ence finding and writing grants,

but this activity would take time that she

did not currently have. She estimated that three to 10 hours we

re needed to find and apply for one grant,

which meant that her regular work would be affected, unless som

eone else was able to do the work.

Full-Fee Client Service

The cost of a 50-minute counselling session varied across Londo

n. Many centres and individual counsellors

developed a fee range and used a sliding fee scale based on hou

sehold income. Most centres and counsellors

also advised clients that their workplace benefits could includ

e extended healthcare insurance packages.

Advertised rates for centres and

individual counsellors ranged

from $90 to $260 per session. For example,

the London Psychological Services

15

and Dr. Patricia Doris and Associates posted their rates onlin

e at $200

per session for individual counselling.

16

15

"Fees and Payment Options," London Psychological Services, acc

essed February 22, 2019, www.londonps.ca/fees-agnes-

wainman-psychologist-counsellor-london-ontario.

16

"Fees and Appointments," Dr. Patricia Doris & Associates: Regi

stered Psychologist, accessed February 22, 2019,

www.drdoris.ca/fees-and-appointments.

For use only in the course Introduction to Managerial Accounting at Northern Alberta Institute of Technology taught by Audrey Kotelniski CPA CMA MBA from June 01, 2021 to August 02, 2021.

Use outside these parameters is a copyright violation.

11

Page 8

9B20B003

Daya used its sliding

scale to determine when a client would be

come a full fee-paying client. For example,

a single-person household with a

n annual salary of $50,000 woul

d be considered a full-fee client, whereas

a client from a four-person hou

sehold would be considered a ful

l-fee client after attaining an annual salary

of $65,000. Daya's full-fee session rate was $115, which was se

t in 2014.

Machado could consider increasi

ng the full-fee rate and expandi

ng the number of full-fee service

appointments to address the deficit. Many of the centre's full-

fee clients preferred evening hours (between

5:00 p.m. and 8:00 p.m.) but Daya's evening counsellors were fu

lly booked. To add more capacity in the

evenings, current day counsellors would have to offer appointme

nts during the evening or new counsellors

would have to be hired to meet d

emand. Machado estimated that a

t least three office spaces were available

for counselling sessions most evenings. Counsellors were indepe

ndent contractors of the centre and were

compensated at a rate of $45 per hour.

Daya's downtown location was c

onvenient for some clients who us

ed local transit but could be a challenge

for securing full-fee clients or counsellors who drove to the c

entre, due to the lack of dedicated parking

spaces at Daya and only limited spaces available at meters or i

n lots throughout the downtown area.

Preliminary data collected from the Safe City London mapping pr

oject, where women

were being asked to

identify locations where they did not feel safe, listed the dow

ntown area as one of the top five locations

with the most unsafe reports.

17

A security guard was contracted to patrol the building between

3:00 p.m.

and 9:00 p.m. each evening; however, the guard was not permitte

d to leave the property to escort individuals

to their vehicles.

CONCLUSION

Machado had to develop a plan to present at the October board m

eeting. She first had to understand the

magnitude of impact that the OW programming changes would have,

as well as other revenue and expense

updates on the projected financial performance of the centre. S

he would then have to evaluate options for

Daya to close the deficit, both qualitatively and quantitativel

y, and determine the best course of action. For

simplicity, she planned to bring a single updated forecast to t

he meeting that covered all financial issues.

The forecast would reflect changes to the OW funded service, ot

her revenue and cost updates, any revenue

and cost changes connected to her recommendations, and an incre

ase in the salaries a

nd benefits expenses,

which would reflect the proposed new clinical administrative su

pport position. Machado knew her ability

to present a cohesive, well-supported plan to the board was ess

ential to the viability of adding a clinical

administrative support position or continuing plans for relocat

ion.

17

"Here Are the Places Where Women Feel Unsafe in London: Most o

f the 2,000 Incidents Were Sexual in Nature and Often

Involved Being Stalked," CBC News, November 19, 2018, accessed

April 23, 2019, www.cbc.ca

/news/canada/london/london-

ontario-stalking-womens-safety-safe-cities-1.4909143.

For use only in the course Introduction to Managerial Accounting at Northern Alberta Institute of Technology taught by Audrey Kotelniski CPA CMA MBA from June 01, 2021 to August 02, 2021.

Use outside these parameters is a copyright violation.

12

Page 9

9B20B003

EXHIBIT 1: DAYA COUNSELLING C

ENTRE CLIENT FEE SCHEDULE

Note: LICO = low income cut off.

Source: Company files (based on

data gathered by Daya Counselli

ng Centre from Statistics Canada for medium-sized cities, based

on number of people dependent on that

income, 2007).

weekly

0-325 325-375 375-480 480-575 575-675 675-775 775-865 865-960 960-1,050

1,050-1,155 1,155-1,250 1,250-1,350 1,350-1,440 1,440-1,540 1,540-1,

635

bi-weekly

0-650 650-750 750-960 960-1,150 1,150-1,350 1,350-1,550 1,550-1,730 1,

730-1,920 1,920-2,100 2,100-2,310 2,310-2,500 2,500-2,690 2,690-2,88

5 2,885-3,075 3,075-3,270

monthly

0-1,300 1,300-1,650 1,650-2,050 2,050-2,500 2,500-2,900 2,900-3,325 3

,325-3,750 3,750-4,160 4,160-4,580 4,580-5,000 4,580-5,420 5,420-5,8

30 5,830-6,250 6,250-6,670 6,670-7,085

annual

0-16,000 16-20,000 20-25,000 25-30,000 30-35,000 35-40,000 40-45,000 4

5-50,000 50-55,000 55-60,000 60-65,000 65-70,000 70-75,000 75-80,000 8

0-85,000

Dependents

(including

self)

LICO

1 person

16,000

1-15

15-25

25-40

40-55

55-70

70-85 85-100 100-115 115

115

115

115

115

115

115

2 persons

19,400

0

1-15

15-25

25-40

40-55

55-70

70-85 85-100 100-115 115

115

115

115

11

5115

3 persons

24,500

0

0

1-15

15-25

25-40

40-55

55-70

70-85 85-100 100-115 115

115

115

115

1

15

4 persons

30,500

0

0

0

1-15

15-25

25-40

40-55

55-70

70-85 85-100 100-115 115

115

115

115

5 persons

34,500

0

0

0

0

1-15

15-25

25-40

40-55

55-70

70-85 85-100 100-115 115

115

115

6 persons

38,500

0

0

0

0

0

1-15

15-25

25-40

40-55

55-70

70-85 85-100 100-115 115

115

7 persons

or more

42,000

0

0

0

0

0

0

1-15

15-25

25-40

40-55

55-70

70-85 85-100 100-115 115

I

N

C

O

M

E

For use only in the course Introduction to Managerial Accounting at Northern Alberta Institute of Technology taught by Audrey Kotelniski CPA CMA MBA from June 01, 2021 to August 02, 2021.

Use outside these parameters is a copyright violation.

13

Page 10

9B20B003

EXHIBIT 2: DAYA COUNSELLING CEN

TRE STATEMENT OF OPERATIONS, FIS

CAL YEAR 2017-18

Daya Counselling Centre

Statement of Operations

For the period ending March 31, 2018

Revenue

Service Agreement Funding:

Provincial Government

45,990

Small Contracts and Employment Partners

8,720

City of London Ontario Works

223,967

United Way

120,208

Client Fees

176,662

Other

21,226

Donations and Grants:

Individuals and Businesses

12,099

Partner-Faith Communities

13,950

Grants and Foundations

28,976

Total Revenue

651,798

Expenses

Salaries and Wages:

Staff

147,961

Counsellors

336,890

Peer and Intern Supervision

14,663

Travel

1,098

Materials and Supplies

21,221

Professional Fees

11,980

Professional Development

3,585

Rent

41,953

Communication and Printing

9,311

Repairs and Maintenance

3,535

Bank Fees, Merchant Card Fees, and Miscellaneous

15,659

Insurance

3,381

Client Database

8,944

Total Expenses

620,181

Surplus (Deficit)

31,617

Source: Company files.

For use only in the course Introduction to Managerial Accounting at Northern Alberta Institute of Technology taught by Audrey Kotelniski CPA CMA MBA from June 01, 2021 to August 02, 2021.

Use outside these parameters is a copyright violation.

14

Page 11

9B20B003

EXHIBIT 3: DAYA COUNSELLING CENTR

E STATEMENT OF FINANCIAL POSIT

ION,

FISCAL YEAR 2017-18

Daya Counselling Centre

Statement of Financial Position

As at March 31, 2018

ASSETS

Current Assets:

Petty Cash

60

Operating Account

100,400

Reserve Fund Term Deposits

50,000

Accounts Receivable

98,447

Prepaid Expenses and Deposits

3,295

Total Current Assets

252,202

TOTAL ASSETS

252,202

LIABILITIES

Current Liabilities:

Accounts Payable

42,881

Deferred Revenue

9,700

Total Current Liabilities

52,581

NET ASSETS

Net Assets, Opening Balance

168,004

Current Surplus or (Deficit)

31,617

Total Net Assets, Ending Balance

199,621

LIABILITIES AND NET ASSETS

252,202

Source: Company files.

For use only in the course Introduction to Managerial Accounting at Northern Alberta Institute of Technology taught by Audrey Kotelniski CPA CMA MBA from June 01, 2021 to August 02, 2021.

Use outside these parameters is a copyright violation.

15

Page 12

9B20B003

EXHIBIT 4: DAYA COUNSELLING CEN

TRE STATEMENT OF OPERATIONS

Daya Counselling Centre

Statement of Operations

For the six month period ending September 30, 2018

Revenue

Year to

Date

Approved

Annual Total

Budget

Year to

Date

Budget

*

Variance

Service Agreement Funding:

Provincial Government

29,302

43,000 21,500 7,802

Small Contracts and Employmen

t Partners

3,720

10,000

5,000 (1,280

)

City of London Ontario Works

104,105

240,000 120,000 (15,895)

United Way

61,012

120,000 60,000 1,012

Client Fees

97,963

150,000 75,000 22,963

Other

6,590

3,000

1,500 5,090

Donations and Grants:

Individuals & Businesses

1,361

1,000

500

861

Partner-Faith Communities

971

15,000

7,500 (6,529)

Grants and Foundations

5,100

15,000

7,500 (2,400)

Total Revenue

310,124

597,000 298,500 11,624

Expenses

Salaries and Wages:

Staff

78,384

168,688 84,344 (5,960)

Counsellors

172,637

323,200 161,600 11,037

Peer and Intern Supervision

7,402

15,750

7,875 (473)

Travel

536

1,000

500

36

Materials and Supplies

4,109

8,500

4,250 (141)

Professional Fees

**

12,070

5,800

2,900 9,170

Professional Development

1,739

4,500

2,250 (511)

Rent

24,979

48,000 24,000

979

Communication and Printing

3,767

10,000

5,000 (1,233)

Repairs and Maintenance

2,043

4,000

2,000

43

Bank Fees, Merchant Card Fees, a

nd Miscellaneous

4,203

2,500

1,2

50 2,953

Insurance

2,807

3,500

1,750 1,057

Client Database

4,472

8,944

4,472

0

Total Expenses

319,148

604,382 302,191 16,957

Surplus (Deficit)

(9,024)

(7,382) (3,691) (5,333)

Note: *Annual budget was divided by

2 to reflect half of the ye

ar already completed;

**Includes one-time

legal fees to update

charitable objects and change from

provincially to federally in

corporated.

Source: Company files.

16

Page 13

9B20B003

EXHIBIT 5: DAYA COUNSELLING CENTR

E STATEMENT OF FINANCIAL POSIT

ION

Daya Counselling Centre

Statement of Financial Position

As at September 30, 2018

ASSETS

Current Assets:

Petty Cash

60

Operating Account

83,277

Reserve Fund Term Deposits

75,402

Accounts Receivable

87,421

Total Current Assets

246,160

TOTAL ASSETS

246,160

LIABILITIES

Current Liabilities:

Accounts Payable

47,279

Deferred Revenue

2,520

Total Current Liabilities

49,799

NET ASSETS

Net Assets, Opening Balance

205,385

Current Surplus or (Deficit)

(9,024)

Total Net Assets, Ending Balance

196,361

LIABILITIES AND NET ASSETS

246,160

Fundraising Event:

Income: $10,000 |10-15 dedicated workers| weekly efforts

Positives:

• Has possibility to earn 10,000 a year like previous fundraisers
• $10000 revenue, which will decrease the deficit significantly

Negatives:

• Daya has not organized a fundraiser for 6 years
• Current staffhaveno extracapacity;therefore,the board of directors would need to take ona task, or to hire a new team completely $$$

Alternative: Special Guest speaker/Workshop

Income: $500-$1000 (net) | 30-40 attendees | 8hrs planning time

Positives:

• Machado has recent experience with hosting this type of event
• Positive feedbackis goodfor organization
• Short planning time (8hrs)
• Can earn between $500-$1000

Negatives:

• Low return on event
• guest speaker eventguaranteedto haverevenue butisvery little. Which is incremental to cover the deficit.Plus,it will need more time from Machado or theassistanceposition to organize and arrange it.Therefore,the net income willcovertheir salaries, not the bestoption.

Additional Grants:

Income: $5000-$15,000 | 3-10hrs work per grant |mustmeet all criteria

Positives:

• Has possibility to earn $5000-$15,000 depending on grant.Which issignificantto increase the revenue
• Grantsdirectly benefit the Daya clients and community while freeing up money in budget
• Machado has considerable experience finding and writing grants

Negatives:

• Very time consuming- 3-10 hours required per grant
• Machado does not currently have time for this option, her regular work would be affected (unless someone else was able to do the work)
• Wouldhave to find someone to fill her duties while working on grants
• Applications requireadetailed budget of how funds would be spent.May fail to get the grants.
• Irregular application times would be harder to base budget on

Full-Fee Client Service

Current full-fee rate $115- Would increase| expand evening appointments

3 office spaces|Cost per session 45$(Counsellorsalaries perhour)+$15(security guardsalariesper hour)

Fee per session $180

Revenue $120/session= $7200 revenue/permonth

Positives:

• Increasing rate would create a larger revenue stream
• Moving out of downtown would attract more full-fee clients
• Rent would likely decrease with moving out of downtown

Negatives:

• Full-fee clients prefer evenings - Dayas evening counsellors are booked
• Day counsellors would need to open their availability to evenings or hire new evening staff
• Securing full-fee clients/counsellors would be a challenge due to lack of parking downtown
• Safety concern - security guard is not permitted to leave property toescortclients to their vehicles

Problem Identification

Analysis(why should we justify thesenumbers?...find evidence from the case...)

Justify numbers from the statement of operations

Other revenue -decreased significantly

individual &business donations -decreased significantly

Grants revenue -decreased significantly

materials and supplies expense -decreased significantly (why is this)

Recommendations

Note....I need help with this project. There is no right or wrong answer, review the case, analyze, and suggest improvements.

Please you guys should not disappoint me this time, my question are always tough for you to solve. Please help. No missing info.