Operational Audit
October-November 2022
Executive Summary
The following material is presented in commercial confidence in response to a four week operational audit of Providential Homes and The Restoration Centre. The audit was conducted from October 17, 2022 through November 10, 2022, by Harvey Rough.
The operational audit was triggered in response to the appointment of David Stewart to a part-time fund-raising role for both organisations. David is networked into the philanthropic top-end-of-town and brings perspective in a competitive donor market.
Five conditional conclusions:
IF David can find Christian donor's who do not look too closely into the operational efficiency of both organisations, then the following recommendations are immaterial to the greater single cause of seeing ex-prisoners enter into a personal relationship with God.
IF David is engaged to seek one or more major philanthropists to help fund growth, then implementing the following recommendations will help secure funding.
As it stands today, both organisations do not meet the minimum philanthropic criteria defined by Impact Philanthropy:
a. Strategy: Evidence of strategic goals and demonstrable outcome-orientated measures. This includes how an organisation tracks its effectiveness against its mission and risks related to its ongoing operation.
b. Outcomes: You must be able to demonstrate activity outcomes with evidence that is measurable, realistic and will provide a clear picture of the long-term impact of funding.
c. Capability: Evidenced by the organisation’s demonstrated-ability to achieve its objectives with the resources available to it. To that end, we look closely at each applicant’s measures of organisational efficiency in business practice.
d. Leadership: Awareness of the external environment including public policy, government, other organisations working within the sector, and the community.
It would be potentially misleading and counter productive to ask any team member to prepare funding submissions given the current management practices.
The Directors of both organisations are ultimately responsible to the a) constitutions b) members and c) Government agencies that give them licence/contracts to operate. They are only answerable to donors if they choose to go down that path.
The recommendations discussed herein are not intended to detract from the years of compassion, conviction, work and generosity that have brought both organisations to this point in time. The founders and staff genuinely care for the "least of these people" (Matthew 25:40) and that is not to be forgotten in a grow or don't-grow decision. Philanthropically funded growth is a choice and, if chosen, will take significant effort and resolve to navigate additional disciplines.
In essence, the directors have three choices:
Keep doing what they're doing - live with the inefficiencies - prop up The Restoration Centre with funds diverted from Providential Homes - allow outstanding rent to grow - and focus on "conversions" at the expense of re-integrating men back into society with reliable jobs and living skills. If numbers continue to swell, then the cycle-time in "camp" (length of stay) could double or triple. "The kids may never leave home!"
Fine tune the current operation with some tough-love decisions and wait upon the Lord for capital donations.
Embark on staged changes and start managing staff performance as per the plan below. By the end of calendar Q2 2023 the organisation will be in a better position to apply for large philanthropic donations.
Mission Statement. Agreed?
The foundation for many of the recommendations contained herein is the mission statement tabled below. It could be condensed to a simple formula:
bed + food + God + personal discipline + education + job skills + job = restoration "success"
The slightly wordier version is:
To enable men to return to society as disciples of Jesus Christ and initiate constructive change in their communities.
We will:
Create safe, clean, supportive, transitional homes.
Establish constructive patterns of daily activity and collaboration.
Introduce clean food, balanced diets and regular exercise to minimise behavioural disorders.
Connect men to The Creator and His creation in a culturally appropriate way.
Introduce educational content to break destructive patterns of behaviour and establish personal responsibility for future decisions.
Introduce job skills to break the cycle of welfare and prison recidivism.
Prepare clients to create a new future outside our transition homes.
Is this agreed?
Final Presentation - November 8, 2022
