LONDON, ON, June 1, 2012 /CNW/ - On May 31, 2012, The Salvation Army
Ontario Great Lakes Division announced the closing of The Salvation
Army Bethesda Centre in London Ontario. Information regarding the
financial status of the Bethesda Centre was taken into question when
financial records from the Canada Revenue Agency (CRA) reported a
surplus of funds for the year-ending 2011.
"Interpreting official financial records and reports can be difficult
and misleading without complete knowledge or understanding of the
situation. Without all the information and context misleading
conclusions can be made. I would like to clarify the information so
the London community will fully understand the financial reality The
Salvation Army Bethesda Centre has been facing for several years," said
Lt. Colonel Lee Graves, Divisional Commander, The Salvation Army Great
Pursuant to the information reported by The Salvation Army Bethesda
Centre to CRA a deficit of $208,631 in March 2009 and $120,723 in March
2010. During the fiscal year March 31, 2011, the Bethesda Centre had
exhausted its cash reserves and The Salvation Army had to contribute
additional funding in an excess of $444,638 to avoid bank overdrafts
and keep the Bethesda Centre solvent and operational. Due to these
additional dollars contributed, The Salvation Army Bethesda Centre
reported to CRA a surplus of $168,838 in March 2011.
Without additional funding in March 2010 and March 2011, The Salvation
Army Bethesda Centre would have incurred a deficit of over $500,000
respectively. Rather than transfer funds out of the budget prior to
year-end in 2011, the funds were carried forward and used in the next
fiscal year (2012).
Once again during the fiscal year ending March 31, 2012, The Salvation
Army had to again contribute an additional $273,243 to the Bethesda
Centre to keep the centre operational.
Over the past 4 years the existing operating model at The Salvation Army
Bethesda Centre has demonstrated that the model is no longer
sustainable and the result has been significant negative financial
impact for The Salvation Army.
Although The Salvation Army has had to make the difficult decision to
close the Bethesda Centre, we want to communicate that, moving forward,
The Salvation Army is fully committed to serving the citizens of London
through our other programs and services every day.
We are thankful for our supporters and partners and for their ongoing
dedication as we together continue to serve the London community.
About The Salvation Army
The Salvation Army is an international Christian organization that began
its work in Canada in 1882 and has grown to become the largest
non-governmental direct provider of social services in the country. The
Salvation Army gives hope and support to vulnerable people today and
everyday in 400 communities across Canada and more than 120 countries
around the world. The Salvation Army offers practical assistance for
children and families, often tending to the basic necessities of life,
providing shelter for homeless people and rehabilitation for people who
have lost control of their lives to an addiction.
When you give to The Salvation Army, you are investing in the future of
marginalized and overlooked people in your community.
SOURCE The Salvation Army - Ontario Central Division
For further information:
Major Pat Phinney, Divisional Secretary for Public Relations and Development
t) 519-873-2983 c) 519-521-2351