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 Lakes Division.
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.
For further information:
Major Pat Phinney, Divisional Secretary for Public Relations and Development
t) 519-873-2983 c) 519-521-2351