For an explanation of the grading used in this report, please click here.
FINANCIAL PERFORMANCE: A-
Revenue grew by less than half of one percent over prior year. Government grants, primarily in the Independent Living and Employment Services programs, grew by $4.85 million while fees and program recoveries decreased by $5.36 million due to the loss of a major contract in Employment Services. Fundraising revenue increased by 6% and investment and other income grew by over $600,000, both signs of an improved economy.
On the expenditure side, March of Dimes changed its financial statements to increase transparency and comply with new accounting standards. In the revised format, 90.4% of expenditures were on service delivery, 2.3% on fundraising, 6.9% on administration and 0.4% on amortization. In 2010-2011, $27.4 million or 27% of expenditures were for WSIB -purchased training and related materials for clients, home and vehicle modification grants, and the purchase and maintenance of assistive devices for which no administration cost is charged. Excluding these, the true cost of administration on the balance of program activity is 10.7%.
The gap between the 2010-2011 budget and actual year-end results is due to the decision by the Workplace Safety and Insurance Board (WSIB) in June 2010, to wind down the Labour Market Re-entry (LMR) contract, which represented 27% of OMOD’s revenue and expenditures, and manage the program in-house, ending new referrals in November 2010 and closing the program in August 2011. As a result, purchased training for WSIB clients was $5 million dollars lower than prior year actual and the current year’s budget, and program related costs dropped from 95% of total organizational expenditures to 90%. The excess of revenue over expenses for the year is $704,580 or 0.7% of total revenue. All other revenue was expended in the year it was raised. The year end surplus funds are transferred each year to the stabilization reserve and capital reserve as per Board policy. The organization was fully compliant with Canada Revenue Agency guidelines and the ethical code of fundraising and financial accountability of Imagine Canada. The funding reserve is part of the overall financial planning and management of the organization which sets aside funds for future use to enhance operating stability, protect the organization from adverse contingencies, provide working capital and finance major capital requirements for OMOD owned holdings. In 2010-2011, $138,242 was received as a gift from the York-Durham Aphasia Centre and the OMODOD Board of Directors established a new fund within the Ability & Beyond Fund for future services benefiting people with aphasia.
PROGRAM REVENUES AND EXPENDITURES
Independent Living Services continued to grow, with revenues of $2.3 million more than prior year due to two new programs assisting seniors to remain in their own homes.
Employment Services, due to the loss of one WSIBWSIBWSIBWSIB contract, saw total expenditures drop by $3.27 million from prior year, while new contracts and growth in other service areas offset some of the loss.
AccessAbility® Services were largely unchanged from prior year. This includes the Home & Vehicle Modification® Program, Assistive Devices Program, DesignAbility®, and Barrier Free Design Consultation Services. March of Dimes and Quadrangle Architects Limited launched a joint venture under the name AccessAbility® Advantage, to provide fee-based consultation services related to compliance with the Accessibility for Ontarians with Disabilities Act.
Combined expenditures in Recreation & Integration Services, Conductive Education®, Peer Support and Advocacy were unchanged from prior year.
PROGRAM PERFORMANCE: A
The following chart compares the number of consumer services delivered and consumer service hours delivered in each program as compared to the 2010-2011 plan and the prior year actual. Both statistics are presented as the form and intensity of each service varies significantly and either statistic alone does not give a true picture of the service.
For example, some services are delivered to groups and some to individuals. Some are delivered by volunteers and some by front-line employees. Some are short and sporadic, such as provision of information, while others, such as personal care, take more time and are delivered with greater frequency to each consumer.
CONSUMER VOLUMES BY PROGRAM
|Program or Service Name
||Direct Service Hours|
|Independent Living Services
|Recreation & Integration Services
|Peer Support Services
|Conductive Education® Program
Plans are completed in January for each fiscal year beginning the following April. For this reason, plan numbers are established prior to having actual results for the prior year. Mid-year forecasts allow for changes that reflect year-end information and consider trends and other more immediate factors.
Driving change was a large expansion in Northern Medical Clinic service numbers, expansion in Employment Services due to new and expanded contracts, 7% more consumers served by our Assistive Devices Program, expanded customer service training in AccessAbility® Advantage, the piloting of a bus service to provide rides to over 9,600 consumers, and growth in our Conductive Education® programs, particularly through a new pre-school program operating daily. We also added the York Durham Aphasia Program to our program mix.
KEY PERFORMANCE INDICATORS (KPI)
A ll programs establish key performance indicators that include measures related to program efficiency and effectiveness, service volumes, and participant satisfaction. With the exception of the variances noted under the program performance section, service goals were met and program participant satisfaction remained stable in 2010-11.
UNDERSTANDING AND MANAGING RISK
OMOD established an enterprise risk management approach in 2002, with management implementing an organization wide program for training and monitoring risk, and the Board establishing a Risk and Audit Committee which oversees the auditing of management, Finance Committee performance, approves the annual audit plan, receives internal audit project reports, and reports results to the Board of Directors. An Internal Auditor position was created in 2007, but was vacant over the past fiscal year. This position will be filled under a Consulting Contract in 2010-2011.
Ontario March of Dimes recognizes the following key risks to its operations:
The majority of the organization’s funds come from government and crown corporations in the form of grants or fees to purchase specific services. The organization is therefore vulnerable to changes in legislation, government funding priorities or policies affecting its approach to service delivery, contract changes, retendering, or termination of contracts.
Most revenue received is designated for specific uses and cannot be retained or used for other purposes. in the political, economic or social environment which affect funding through purchased services or donor support.
A number of key services are dependent on discretionary dollars raised through fund development, business operations and proprietary services. These programs are at risk when budgeted revenue targets are not achieved.
Strategic goals, such as building the brand and expanding services across Canada require an investment of funds and community building with little guarantee of immediate return on the investment.
Our Government Relations and Advocacy department, in conjunction with senior management, monitors government policy and identifies opportunities and risks while cultivating proactive relationships with government at senior levels to promote the issues impacting people with disabilities as well as to mitigate risk to the organization.
PERFORMANCE MANAGEMENT AND COMPENSATION
All employees are individually evaluated annually based on a comprehensive set of performance goals and core competencies for their particular job. Managers are also evaluated based on achievement of program goals and key performance indicators from their annual program plans. Pay is based on merit and a comprehensive salary structure with regular comparators to similar organizations and the marketplace. The policy of OMOD is to provide fair compensation, but to be in the mid-range of the marketplace regarding pay levels. This relates to all levels of management. As well, all employees are eligible for a pay bonus for exceptional performance.
Annual program plans are developed and submitted to management and the Board in March of each year for implementation commencing in April. Plans relate to strategic goals from our five-year strategic plan, and goals and objectives focus on three areas: on-going activities, new or expansion initiatives, and quality improvements. Each objective has measurable performance indicators.
Plans are evaluated twice each year: at forecast in November and at year end, following the end of the fiscal year and the presentation of the audit in July. The Program Research Department coordinates confidential consumer and satisfaction surveys, providing critical feedback to management to improve service delivery and the quality of working conditions for employees. The Human Resources Department similarly does Quality of Work Life surveys, identifying issues that are of concern to employees. External researchers and interviewers are used to maintain confidentiality. The Program Research Department also works with each department to establish program logic models and charts, evaluate processes and pilot projects, and work with external research bodies on joint research funding and program evaluation projects as required.
Information systems are used in accounting, human resources, payroll, fundraising, donor and case management and client tracking. In 2010-11, a new accounting system was implemented as well as a new payroll system. The implementation of a scheduling system was delayed due to sequencing of projects and technical setbacks. Work continues on report generation and integration of data. OMODOD also pilot tested a new common assessment intake system to be used by the Ontario health system in 2010-11 and is working with other government funded organizations to implement this system over the next two years.
Management systems are centrally designed, networked and supported with a 24-hour help desk. Layers of redundancies, back-up systems, a secondary hot site and off-site data storage protect the organization in the event of system failure or damage, or natural disaster.
ISO 9001:2008 registration is managed and monitored centrally for Independent Living and Acquired Brain Injury Services. The Home & Vehicle Modification Program is undergoing the process to achieve certification over the next 12-to-18 months.
A number of internal controls are in place which are annually reviewed and signed off by management and comprise part of the annual external audit. Employees and volunteers annually sign an Ethical Code of Conduct and provide proof of professional designations, insurance and other requirements to perform their duties. All employees are required to have a criminal reference check prior to confirmation of employment. An extensive in-house training program is managed to ensure that staff achieve and retain certification requirements, receive and complete required job skills and training in a timely fashion, and are able to achieve the goals of the organization.
Comprehensive operational and policy manuals are in place and regularly updated for all programs and departments of Finance and Human Resources.
Financial reporting including budgeting, monthly statements, financial analysis and transactional procedures is monitored by both management and the Finance Committee.
Governance and management functions are clearly delineated and the Risk and Audit Committee reports independent of management to the Board of Directors.
Emergency preparedness is part of management planning and includes business continuity planning which was updated in 2010.
This annual report is a consolidated report of two separate corporations: March of Dimes Canada, which is federally chartered, and Ontario March of Dimes, which is provincially chartered. The goal in 2011-12 is to merge the service and administration under a single federally chartered registered charity. This has been delayed as we await the federal government proclaiming into force the new Canada Non-Profit Corporations Act (CNCA), which will allow Ontario March of Dimes to apply to continue as a national entity operating as March of Dimes Canada. Our current national charity will apply to continue under the name March of Dimes Canada Holding Corporation to which major assets will be transferred. In preparation, the Nominating and Governance Committee is reviewing the new CNCA requirements and preparing new Bylaws which the current Board will need to adopt.
Currently, Ontario March of Dimes is governed by a 24 member Board of Directors plus one lifetime member, meeting six times per year. Committees of the Board include the Executive, Finance, Risk and Audit, Nominating and Governance, Executive Compensation and the CEO Performance Evaluation Committee. The Pension and Investment Committees each meet quarterly and report to the Finance Committee, which in turn reports to the Board of Directors. Program specific committees provide advice to programs and may hear appeals from consumers when these come forward Each year, new Directors are provided with an orientation program and detailed Board manual.
During the prior year new Terms of Reference for March of Dimes Canada committees and a Volunteer Committee Handbook were prepared. The Associate Director of Community Relations, in conjunction with other staff, began the process of re-building and re-aligning existing local volunteer advisory bodies. Committees exist in Kingston, London, Peel, Sarnia and Sault Ste. Marie. Their main purpose is to promote and support the mission, vision and values of March of Dimes in their community. Working with staff, the committees assist in the identification of new and emerging community needs relating to the current March of Dimes’ services available, promote and support the development of programs and engage in marketing, awareness and fundraising activities as needed.
March of Dimes Canada and the other subsidiary corporations of OMOD - OMOD Non-Profit Housing Corporation, the York Durham Aphasia Centre and the Rehabilitation Foundation for Disabled Persons U.S. - operate under separate charitable numbers with independent Boards of Directors. Members of the OMOD Independence Non-Profit Corporation voted at its annual meeting in July, 2011 to cease operation and surrender the Charter.
The next two years will be very challenging for OMOD due to changes and uncertainties in our Employment Services, including the cancellation of our case management contract by the WSIBWSIBWSIBWSIB which took all such work in house during the year, expected retendering of other contracts, and difficulty of negotiating union contracts during the wage restraint contract period imposed by the provincial government. In addition, the success of national expansion remains unknown and will have a short-term impact on the financial uncertainty facing the organization and the objective of rebranding the corporation.
On the positive side, peer support and other services are growing. Conductive Education® is being increasingly recognized as a beneficial intervention for people with disabilities of all ages. Our mandate is now reflective of a national brand and our use of social media has dramatically expanded. Government at senior levels regularly invites consultative input, media support has increased and our 60th anniversary has provided tremendous opportunities to celebrate our success in meeting strategic goals.