HKSEC Challenge 2008
越障會 Able-Learning Society 學習不再障礙 跨越成就將來 To Turn Learning Disability to Ability
Team 49 Lam Wai Hei Wan Shuk Man Winnie
She Cheuk Man Yuen Ching Man
Executive Summary Learning disabilities (LD) is a current neglected and serious problem among Hong Kong pupils, which is a kind of disorders affecting a broad range of academic and functional skills.
Indeed, learning disabilities is a serious social problem which affects more than
5,000 primary one pupils locally, their families and the whole society. Our Able-Learning Society aims at assisting LD pupils and with the faith “To Turn Learning Disability into Abilities�. monitoring and training.
Our program involves assessment, treatment,
For the assessment and treatment, we will use an Input, Integrate,
Output (IIO) system which is divided into the speech therapy and psychology therapy.
The
speech therapy involves five senses training, story-telling, mind mapping, learning strategy, physical exercise and word bank, and it also includes psychology components such as interaction approach, repeated training and confidence build-up programs.
In the output
treatment, psychology therapy, together with art therapy and play therapy, will be used, aiming at improving patients’ self confidence. The main difference between our Able-Learning Society and other clinics is that we will use proactive approach for assessment, thereby providing more comprehensive and faster services. We will also provide frequent and continuous treatments for the pupils, i.e. 3 times per week. For financial projection, we will take about 1.65 years to reach the break even point, and aim at the profit margin of 19% for the following years.
Page 1 of 30
Table of Content 1. Introduction..................................................................................................................... 3
2. Learning disabilities (LD) ............................................................................................... 3
3. Market Analysis .............................................................................................................. 4
4. Competitor Analysis ........................................................................................................ 5
5. Able-Learning Program .................................................................................................. 8
6. Our Team Plan .............................................................................................................. 15
7. Our Competitive Edges ................................................................................................. 16
8. Our Four-Phase Development Plan .............................................................................. 17
9. Our Future Plan with Tri-Partnership......................................................................... 18
10. Our Implementation Plan and Financial Projection.................................................. 19
11. Conclusion ................................................................................................................... 20
Appendix 1 – Examples for treatment .............................................................................................. 21 Appendix 2 – The reason of using full time educational trainers ....................................................... 23 Appendix 3 – Our flow of implementing Able-learning program...................................................... 23 Appendix 4 – Balance sheet ............................................................................................................. 23 Appendix 5 – Income statement ....................................................................................................... 25 Appendix 6 – Cash flow statement ................................................................................................... 27 Appendix 7 – Monthly cash flow ..................................................................................................... 29 Appendix 8 – Data for calculation ................................................................................................... 30
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1.
Introduction Learning disabilities (LD) is a current neglected and serious problem among Hong
Kong pupils, which is a kind of disorders affecting a broad range of academic and functional skills, including abilities to speak, listen, read, write, spell, reason and organize information1. Indeed, learning disabilities is a serious social problem which affects more than 5,000 primary one pupils in Hong Kong. In fact, learning disabilities not only lead to education problem and children development problem but also turn to be social problem such as crimes and government burden. For families, around 40% parents of LD children are suffering from insomnia and anxiety and 14% of them even considered suicide2. For society, according to the presentation performed by Dr. Gavin Reid3 and Hong Kong Association for Specific Learning Disabilities, about 50% of young prisoners had learning disabilities in foreign countries. Therefore, if a child can get rid of learning disability, his family and even the society will be benefited. 2.
Learning disabilities (LD) There are eight types of learning disabilities in the society. They are Language
Disorders, Dyslexia, Articulation Disorders, Neurological Communication Disorders, Dsyphagia, Fluency Disorders, Dysphonia and Hearing Impairments4. Ms Cecilia Au, the 1
Based on the definition provided by Hong Kong Specific Learning Difficulties Research Team. Retrieve November 14, 2008, from web.hku.hk/~hksld 2 支援不足陷焦慮 學障童家長易萌輕生念(January 21,2008). Retrieved December 26, 2008, from Singtao Daily 3 香港讀寫困難學童的明天？(February, 2002). Retrieved December 26, 2008, from http://www.fmshk.org/hkmd/feb2002/sf20020202.htm 4 The types are referred by LD Online: http://www.ldonline.org/ldbasics/whatisld
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senior speech therapist of Widex, has stated that a large proportion of learning-disabled pupils in Hong Kong are facing the problems of language disorders, dyslexia and articulation disorders. It is also supported with the report of The Hong Kong Association for School Discipline and Counseling Teachers (HKDCA)5. But LD is not equal to abnormal variations of mental skills or abilities and it can be cured with appropriate treatment.6
Figure 1: Main types of learning disablilities in Hong Kong
3.
Market Analysis According to a study done by Professor Ho of Hong Kong University (2007)7, there
were about 9% to 12% of learning-disabled pupils/ students (approximately 38,000 to 50,000) in Hong Kong. In other words, in a class of 30 pupils, 3 children may have learning disabilities or about 100 learning-disabled pupils are on average in each primary school. Mr. Wong, the external secretary of Hong Kong Association of Speech Therapists, stated the learning disabilities are evenly distributed in all primary schools. However, LD is a fast growing and underserved problem which is predicted to expand 40% for every 3 years, and the services needed in the community are still not fully matched. Compared with the figure of
5
「學校照顧有特殊教育需要(SEN)的學生」－ 現況與展望調查報告(2008). Retrieved December 26, 2008, from http://www.hkdca.org/sen_report.pdf 6 http://www.processingskills.com/ps/dyslexia.htm 7 張美鳳. 10 萬學生讀寫障礙(January 21,2007). Retrieved November 15, 2008, from Wen Wai Pao
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P.1 pupils with LD in 2004/ 05, the number was increased 40% (about 5,434 primary one pupils) in 2007/ 08.
Professor Ho (2007) stressed that the problem would be more serious if
no proper measures are taken.
Hence, there is an urgent need for early LD diagnosis and
treatment to all the pupils, especially the Primary One pupils, who will be our targets. Furthermore, in 2008/ 09 academic year, each primary school can receive $400,000 annual budget to serve about 100 pupils with LD under the School-Based Support Scheme. Each pupil receives about $4,000 per year; but each time, he needs to pay about $500 for 20 minutes treatment in a private clinic.
This means that most of the pupils still suffer from the
incomprehensive assessment, prolonged diagnoses and treatment.
In addition, some schools,
which do not have insufficient in-take numbers of pupils, may not be benefited from the scheme.
Therefore, we aim at providing more comprehensive and affordable programs to
assist the LD pupils.
4.
Competitor Analysis There are mainly three types of organizations which assist LD pupils/ students; they are
Government, Private Clinic and NGO clinics. Government clinics: Under the current policy of Education Bureau, only 1,000 primary pupils and 50 secondary pupils may benefit from assessments each year, where the total number of learning disabled pupils and pupils are 10 times more than these figures.
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Furthermore, according to the news article provided by Wen Wai Pao8, every LD pupil has to wait for 6 to 9 months on average for the first time assessment. The situation is even worse for some serious patients as 2 or 3 years is required for transferring to psychologists. Hence, most LD pupils may not receive adequate treatment and the government clinics can only handle pupils with very serious learning disabilities. 9 Therefore, some primary schools attempted to solve the problems by themselves. However, the results were unsatisfactory. Only 31.4% Primary One pupils got improvements as the programs were not systematic, long term and professional.10 Private and NGO clinics: Private clinics are the major source for most LD patients. But speech therapists mostly adopt passive approaches as they wait for referrals from teachers. In addition, under the School-Based Support Scheme, one speech therapist may visit a primary school for one day per week11. Mr. Wong12 admitted that the time for treatment is not enough.
He further added that some speech therapists would organize a 2-hour seminar
to teachers for identifying pupils with LD and the workloads of speech therapists can then be lessened.
But the support for the teachers is entirely insufficient.
Referring to a survey
performed by Hong Kong Christian Service (2008), over 90% of teachers indicated that the
8
張美鳳. 10 萬學生讀寫障礙 (January 21,2007). Retrieved November 15, 2008, from Wen Wai Pao Hong Kong Legislative Council. Supplementary Information Note on Assessment and Support for Students with Specific Learning Difficulties. Retrieved December 26,2007, from http://www.legco.gov.hk/yr04-05/english/hc/sub_com/hs52/papers/hs521216cb2-703-1e.pdf 10 歐陽杏櫻, (2008-09-30). 學障小一生 3 年增 4 成. 文匯報. Retrieved from: http://www.wenweipo.com/news_print.phtml?news_id=HK0809300075 11 年培訓 40 言語治療師 走向私營成大勢(October 10,2008) . MingPao Daily. Retrieved December 26,2008, from: http://jump.mingpao.com/cfm/JobArticle1.cfm?PublishDate=20081010&TopicID=L1&Filename=gp0800208.txt 9
12
the external secretary of Hong Kong Association of speech therapists Page 6 of 30
support from the Education Bureau was not enough, especially for long-term treatment and training. Based on the survey performed by the Hong Kong Federation of Education Workers (2008), 84% of teachers felt pressure and 11.7% felt extremely high pressure in tackling all the daily job duties and the pupils/pupils’ personal problems. Currently, some NGOs like Hong Kong Jockey Club, Tung Wah and Distinctive Learning Society are aware of the LD problem. For example, Heep Hong Society gives some training courses to the LD pupils and their parents. However, the courses provided are short term only (for 10 days) rather than a long term treatment and comprehensive program. In short, the private and NGO clinics have six problems: (1) As the compensations are not motivational, private and NGO speech therapists can only provide limited services; (2) Their passive approach can only serve small portion of students; (3) Due to the limited resources, many therapists cannot adopt customized treatments to every LD patient; (4) Their treatments rely much on the teachers and parents who are not professional; (5) The programs provided by the private and NGO clinics are not continuous; and (6) teachers and parents are without comprehensive and systematic training13. Figure 2: Deficiencies of Private and NGO clinics
13
讀障童經訓練認字多三倍(May 7,2007). Retrieved December 26, 2008, from Oriental Daily.
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Able-Learning Program We aim at providing a comprehensive package which involves the assessment, treatment, monitoring and training. ďƒ˜
Assessment and Judgment with IIO system:
We would adopt a proactive approach
as we actively perform assessments for all Primary One pupils rather than waiting for referrals. The assessment includes two parts: evaluation form and conversation. The evaluation form is designed by our psychologist and speech therapists whereas in the conversation, we would classify pupils with various IIO problems: input disabilities (e.g. visual and/ or auditory perceptual disabilities), integrate disabilities (e.g. sequencing and/ or abstraction disabilities and output disabilities (e.g. language disabilities).
We would use five
major judgment methods; they are talking, story-telling, writing, commanding and discussion. (Please refer to Appendix I for some examples.) ďƒ˜
Treatment:
We would use the classification methods suggested by Larry (2001)14. We
would then classify the pupils by their different IIO (Input, Integrating and Output) levels. Treatment will be carried out on small class basis of 5 students. Our able-learning program is divided into speech therapy and psychology therapy. For speech therapy, we would arrange 2 sections per week. The program integrates different kinds of awarded programs which include five senses training, story-telling, mind mapping,
14
Larry B. S. (2001). What are Learning Disabilities? Retrieved December 26, 2008, from: http://www.ldonline.org/article/5821 Page 8 of 30
learning strategy, physical exercise and word bank. For psychology therapy, we would provide 1 section per week together. For psychology therapy we aim at improving the self confidence of the pupils through encouragement and trust development. Psychological support and physical support are inter-related to each other. Figure 3: IIO System
There are mainly five methods for input disabilities: (1) Five senses training – General: According to the presentation of Hong Kong Christian Service (2008), five senses training can improve one’s learning abilities and social relationships with others by 17%. Thus, a person’s confidence may be enhanced by 8.8%.15 The five senses are visual, auditory, kinesthetic, olfaction and tactile. For visual training, educational trainer paint different parts 15
www.hkcss.org.hk/cy/080317_HKCS_多感官學習訓練計畫.ppt
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of words in different colors for easier distinguishing. For auditory training, educational trainers keep on repeat pronouncing words to pupils for memorizing. For kinesthetic, the educational trainers prepare some flashes for pupils to understand the words. For olfaction training, educational trainers stick different parts of the words with fragrance. For tactile training, different parts of the words will have different textures. (2) Learning strategy – Words structure: It focuses on teaching of how to understand a word and how to remember the structure of the word in order to enable pupils to write the words correctly. Moreover, educational trainer will also teach the pupils some methods to remember different parts of a word. (3) Word bank: Educational therapists use the technique of word bank to help pupils in memorizing. (4) Physical exercise – Commanding game: Educational trainers undergo some command games. The pupils are required to follow some instructions like finding things in the room. They will also be required to follow some instructions in building the Lego. (5) Practice – Q&A game: Educational trainers will keep on asking questions to train students’ listening skill and answering skills. To integrating disabilities, there are eight approaches: (1) Mind mapping: Pupils are taught to use a mind map to write a story as they can interpret and organize the story better. (2) Learning strategy – Story telling: Educational trainer will teach pupils to use LSCWC (Look, Say, Cover,
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Write, Check) learning strategy and teach them to make use of 5W1H (When, Why, Where, Who, What and How). Educational trainers will give them guidance and hints from time to time. (3) Card game – Sequencing: With some pictures and card games, pupils will have many opportunities to keep on practicing. They will be asked to organize a story with cards so as to improve their interpreting skills.
(4) Learning strategy – Whole word
structure: Educational trainers will teach pupils word structures in order to let them memorize the words. (5) Five senses trainings – Meaning: Educational trainers will focus on using the five senses training to let pupils link the meaning of the words with the shape of the word by using odor, visual and etc. For example, the staff will give them to taste mango in order to link with the word “mango”. (6) Situational card game: Educational trainers use some situational card games like “What could you say?” to train their answering and asking the right questions, thereby improving their social skills. Practicing pragmatics will give pupils different situational problems for improving their reasoning together with problem solving skills. “I would say” card game can help them in organizing. (7) Card game – Shopping list + Color match express: With the card games about shopping list, we will ask them to buy a few things and they will need to memorize it and put them into the cart card. (8) Learning strategy – memorizing: Educational trainers will apply different learning strategies and five sense trainings. Educational trainer will teach
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pupils’ learning strategies, including SQ3R (Survey, Question, Read, Recite, Review, PQRST (Preview, Question, Read, State, and Test), and Photo Reading Whole Mind System. For memorizing the words, word-by word approach is for dividing words into a few parts and word visualization approach is for increasing their impressions about words. What could you say?
Shopping list
Table 1: Card game examples Practicing Pragmatics I would say
Colour match express
Card game and colour match express can stimulate the sensitivity of the pupils and these also train pupils’ memorizing skills by combining different colors of the train puzzle. We will prepare 6 methods to tackle output disabilities:
(1) Card game – answering:
Educational trainer will guide them to answer correctly. Firstly of all, we will teach them how to listen the questions. Next, we will teach them how to answer the key points. Lastly, we will Page 12 of 30
teach them how to organize the answer well. Card games will be one of our main tools. Card games like “What’s difference” can guide them to answer questions accurately by pointing out the difference like colors. (2) Phonics card and the tongue model: We will use some phonics cards and the tongue model to train them. Through teaching them the right phonics of the words, educational trainers will repeat many times for the pupils and even demonstrate to them by tongue model. Educational trainer will teach them different phonics in different weeks. After the pupils pronounce a words, our educational trainers will fine tune their phonics and repeat practicing with them. (3) Paired reading approach: Educational trainer will read books with pupils and it will stimulate pupils to read. (4) Five sense training – CD books: Some books with CD are provided to help them read the words while listening to the words. (5) Art Therapy: According to Dr. Lin (2008)16, after 10-12 art therapy sessions with pupils, they may build up relationships with trainers more easy. In addition, the art therapy is helpful for exploring their feelings, creating their images and sharing to their thoughts during the process. (6) Play Therapy: Play therapy focuses on improving the social skill of the pupils. It lets pupil express their experiences and feelings through a natural, self-guided, 16
Lin, D. R. (2008). Art Therapy is a Kind Window for Pupils with Special Educational Needs. National Conference of Special Education and Art Therapy in Taiwan, 15-16, National Taichung Educational University in Taichung. Page 13 of 30
self-healing process. The whole therapy will use different toys like real object, shooting toy with water gun and creative toy like lego. They can show their emotion and express their feeling very quickly with the toys. They may also have role-plays with toys and they will learn what is respect, learn how to wait and control themselves effectively. They can enjoy the feeling of success and thereby improve their self confidence. ďƒ˜
Monitoring: The monitor system contains
two dimensions. One is the course performance dimension. Another is the management aspect. For the course performance dimension, our course will be monitored regularly and evaluated by the therapists. For the management dimension, our speech therapists and psychologists will diagnose pupils at least once per month in order to evaluate if the current program is suitable for the pupils and effective. For serious patients with phonic problems, we will provide them some courses with computer software or games. ďƒ˜
Training for parents and teachers: We will provide free trainings to parents and
teachers through seminars given by Education Psychologists and Speech therapists. The topics are diversified, like learning strategies, games for learning disabilities, teaching methods for learning disabilities, building up self confidence and the importance of role-modeling. Through these trainings, we do not only provide technique for parents, but also raise their awareness about their importance in the whole program.
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5.
Our Team Plan There will be a supporting team, speech therapists, educational psychologist, full time
educational trainer and placement in our organization. Supporting team will involve ten types of experts which involved speech therapist, teacher,
audiologist,
medical
social
worker,
clinical psychologist, pediatrician, public health nurse, occupational therapist, physiotherapist and optometrist. They will be our advisors to our able-learning program and provide some seminars for our full time educational trainers and our potential clients. For the speech therapists, they will be our trainers. They will be responsible to prepare training materials and to provide systematic trainings to our full time educational trainers, teachers and parents. They will also be responsible for treatment twice per month for each school and will be our chief assessor for the pupils. For educational psychologist, the staff will be responsible for the training to our staff and the course design. For the full time educational trainers, they are recruited from undergraduate students studying social worker, counseling and education. They will be multi-skillful trainers for LD pupils and be responsible for assessing, treating and training them. They also act as assistants to speech therapists and finish assessment reports. According to, Dr. Lin17 , a full time
17
the Research Associate of Hong Kong Shue Yan University Page 15 of 30
educational trainer with a relevant background may require 240 hours training so as to catch up the skills of the whole training program (Speech, Art and Play therapy) We will hold an intensive six weeks training for the educational trainers. For the placement, they will be our supporting trainers, thereby gaining experiences and skills in treating the learning-disabled. This may help our society and the university students maybe our workforce in the future. 6.
Our Competitive Edges Our Able-Learning Society will have the following competitiveness:
No waiting time: Comparing to the unstructured assessment of the government’s psychologist, we have a clear and systematic assessment from speech therapists. Assessment will be carried out in July and August every year in primary schools. Proactive approach: All Primary One pupils will actively be assessed instead of waiting for referrals. The targets may be around 150 P.1 pupils in one school. One continuous line program: Our program is a well designed and in one continuous line, involving assessments, treatments, monitoring and trainings. Classified treatment: Our courses are classified into different serious levels and different criteria of IIO. We also adopt small classes in our treatment. Frequent treatment: As our training and treatment programs can be handled by our educational trainers, the cost of our program will be lower. We will also visit a school 3 times a week while most private clinics can only perform once per week.
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Cross-Professional team: Other private clinics involve speech therapists only.
But our
educational trainers learn from different experts and they have a wide variety of knowledge about the ways to tackle LD pupils. Working with parents: The involvement of parents is very important. We aim at counseling parents, and eliminating their burdens. Systematic training for parents and teachers: The trainings will be designed by our speech therapists, educational psychologist and our supporting team. The training will be given regularly, continuously and step by step. Long term: Our program is a long term one which will be year base. It will achieve a better result comparing to those short term courses organized by the NGOs. 7.
Our Four-Phase Development Plan We divide our plan into 4 phases based on different treatments towards junior pupils,
senior pupils, secondary pupils and training for parents and teachers. In the first year of Phase 1, we will assume the adaptation rate of our services is 5%. There may be 635 primary schools in Hong Kong. Therefore, we may have 32 primary schools as customers. We will aim at 10% increase of the number of pupils who adopt our service yearly. There are 2 reasons of choosing Primary One for Phase 1. First, earlier identification of LD will lead to better treatment. Second, P.1 is an important stage of all the pupils. After gaining more experience and reputation, we will go to Phase 2 which focuses on
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Kindergarten as there is no private clinic to serve this segment and the support for the kindergarten children is not enough. Moreover, according to a survey from City University18, they believe that discovering LD in kindergarten can effectively help children. Afterwards, we will enter Phase 3 as focusing on all primary school pupils and then go to junior secondary school students for Phase 4. Table 2: Four-Phase Development Plan Kindergarten Phase 1
Primary 1
Primary 2-4
Primary 5-6
Form 1-2
Parents
Teachers
Y
Y
Y
Phase 2
Y
Y
Y
Y
Phase 3
Y
Y
Y
Y
Y
Y
Phase 4
Y
Y
Y
Y
Y
Y
8.
Y
Our Future Plan with Tri-Partnership Able-Learning Society will be operated in a tri-party system with NGOs and the
Government and the business sectors in the long run.
To the government, we will ask for
financial support from Education Bureau and experienced experts for the Department of Health and Social Welfare.
We will
corporate with various local universities for placements. Moreover, we will rely on the Hong Kong Association of Speech Therapists to recommend some new therapists for us and some new movement in their industry. For the NGOs, we will tightly cooperate with
18
香 港 家 長 組 織 成 效 研 究 (2003).Retrieved hkedcity, from: chsc.edb.hkedcity.net/chi/content_pub/report/chi_hsch_sum.pdf
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Distinctive Learning Society. After the interview with Mr. Wong, the general secretary of Distinctive Learning Society, the organization is willing to cooperate with other LD societies so that we can share with their 7 years experience. In addition, we will cooperate and learn from the Tung Wah Groups of Hospital. For the business, we will cooperate with some psychology clinics for referrals and cooperation. 9.
Our Implementation Plan and Financial Projection Our implementation plan is as below: Figure 4: Our Implementation Plan
Our flow of establishing our company is as the following: ďƒ˜ Fund raising from investors: Our funds are mainly from Social Venture Capitalists and private investors. We will approach the investors through referees included Mr. Wong of Distinctive Learning Society, Dr. Ricky Szeto from Hong Kong Shue Yan University and Social Enterprise Organizer of YMCA, Mr. Lee and Father Chan Ping Yu from YMCA. They have wide personal networks and agreed to arrange meetings with potential investors for us. Page 19 of 30
ďƒ˜ Proactive approach to the schools and investors: First, we will approach the principals through referees, e.g. from the professors and Distinctive Learning Society (Mr. Wong). Second, we will approach all the principals through mails and visits. We assume that the successful rate for an interview is 20%, accounting for 127 primary schools. In addition, we assume that we will use about 1.65 years for the payback period and the profit margin will be retained around 18% to 20% as shown in Table 3. Table 3: Financial Summary Payback period: $2M/$1.2096M= 1.6534 yrs Profit margin: Net income/ Sales = $1.2096.76M/ $5.76M = 21% for 2011 = $1.1448M/$6.336M = 18% for 2012 = $1.104M/$6.9696M = 18% for 2013 On average: 19% Return On Equity ratio: Net income/ Total Equity = $1.2096.76M/$2M = 60.48% for 2011 = $114.48 M/ $2M = 57.24% for 2012 = $ 1.104M / $2M = 55.2% for 2013 On average: 55.64% 11. Conclusion Able-learning society focuses on solving the problems of learning disabilities. We will reach at least 10% of P.1 LD every year, in the long run, the total number of learning disabled will be decreased by 10%19 in the future and lowering the future crime rate of young prisoners by 5%20. Moreover, the pressure on teachers can be lessened, parents will never be in distress and the burden of the society will be relieved. For the financial projection, we will take about 1.65 years to reach the break even point, and aim at the profit margin of 19%.
19 20
When the program continues to run perpetually, 10% of total LD in primary school pupils will be cured by our program. 50% of young prisoner are learning disabilities. We would serve 10% of LD. 50% x 10% =5%
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Appendices Appendix 1 – Examples for Treatment Input disabilities Visual perceptual disabilities
Input disabilities Auditory perceptual disabilitie
Integration disabilities Sequencing disabilities
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Integration disabilities Abstraction disabilities
Output disabilities
Language disabilities
Judgment
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Appendix 2 - The reasons of using full time educational trainer: Not all pupils with LD need speech therapy and some just need tutorships which is a support service for assisting them in specific areas that they may have difficulties. Tutoring supports includes basic study skills like learning strategies, story-telling and mind mapping. It also involves instruction in subject content and in the total curriculum by a private instructor who works with the individual student or in a small group. The focus generally is directed toward completing a curriculum or a specific area of work.21
Appendix 3 - Our flow of implementing Able-learning program 1.
Classify the pupils into different group
2.
Schedule the classes
3.
Find location
4.
Treatment
Appendix 4: Balance Sheet - Assumptions: (1) The startup cost of $1,242,800 for the Able learning Society will be evenly collected throughout 12 months in preparation period, where an additional $757,200 contribution is used for daily operation. collected, i.e $2M/ 12=$166,677.
A monthly contribution of $166,677 will be
(2) Based on Professor Ho (2007), Hong Kong’ learning
disability grows at 40% per 3 years, on average 12% annually. We assume 10% increase in adoption of our service annually. (3) At 1st January, 2008, there are 635 primary schools in Hong Kong. Assume the adoption rate of Able-Learning Program is 5%. 32 primary schools
21
http://www.interdys.org/ewebeditpro5/upload/How_to_Find_and_Select_an_Academic_Therapist.pdf
Page 23 of 30
would become our clients. (4) As there are 10% pupils are Learning disabled in Hong Kong and are evenly distributed among schools. Each classroom has 3 disabilities on average as mentioned on page 2. Primary one has 5 classes on average. Thus, 3 x 5 = 15 learning disabilities. (5) Based on the data disclosed by Ms Cecilia Au, the senior speech therapist of Widex, 80% learning disabilities in Hong Kong are mild. Therefore, each school would have 80% x 15 x $100,000 + 20% x $20,000 subsidy = $180,000 per year for primary one students. (6) Assume school would pay 10% of the cost in July for assessment and the remaining cost in September where official subsidy is granted. Able-learning Society Balance Sheet At June 30, 2010
Assets
Liabilities and Owner's equity
Current Assets Cash Bank
Current Liabilities $ $
50,000 417,200
Total
$
467,200 Total
$
-
Fixed Assets Office equipment Treatment equipment
$ $
Owners's equity 190,000 Paid in capital 100,000
$
757,200
Total Assets
$
$
757,200
$
-
$ $
757,200 1,209,600
$
1,966,800
757,200 Total Liabilities and owner's equity
Able-learning Society Balance Sheet At June 30, 2011
Assets
Liabilities and Owner's equity
Current Assets Cash Bank
Current Liabilities $ $
50,000 1,636,800
Total
$
1,686,800 Total
Fixed Assets Fixtures Treatment equipment
$ $
Total Assets
$
Owners's equity 180,000 Paid in capital 100,000 Retained earnings
1,966,800 Total Liabilities and owner's equity
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Able-learning Society Balance Sheet At June 30, 2012
Assets
Liabilities and Owner's equity
Current Assets Cash Bank
Current Liabilities $ $
50,000 2,791,600
Total
$
2,841,600 Total
Fixed Assets Fixtures Treatment equipment
$ $
Total Assets
$
Owners's equity 170,000 Paid in capital 100,000 Retained earnings
3,111,600 Total Liabilities and owner's equity
$
-
$ $
1,966,800 1,144,800
$
3,111,600
$
-
$ $
3,111,600 1,104,000
$
4,215,600
Able-learning Society Balance Sheet At June 30, 2013
Assets
Liabilities and Owner's equity
Current Assets Cash Bank
Current Liabilities $ $
50,000 3,905,600
Total
$
3,955,600 Total
Fixed Assets Fixtures Treatment equipment
$ $
Total Assets
$
Owners's equity 160,000 Paid in capital 100,000 Retained earnings
4,215,600 Total Liabilities and owner's equity
Appendix 5: Income Statement Able-Learning Society Income Statement For the 12 months preparation period Ended June 30, 2010 Revenue: Net Sales $0
Gross Profit (Loss)
Expenses: Office fix up Depreciation Course Design Training allowance for Educational trainer Salaries Rent Miscellaneous Mandatory Provident Fund Total Expenses Net Operating Income
Net Income (Loss)
$200,000 $10,000 $100,000 $192,000 $564,000 $90,000 $50,000 $36,800 $1,242,800 -$1,242,800
-$1,242,800
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Able-Learning Society Income Statement For the 12 months(1st Yr Program) Ended June 30, 2011 Revenue: Net Sales
$5,760,000
Gross Profit (Loss)
$5,760,000
Expenses: Depreciation Salaries Rent Miscellaneous Mandatory Provident Fund Contribution
$10,000 $4,128,000 $180,000 $50,000 $182,400
Total Expenses Net Operating Income
$4,550,400
$1,209,600
Net Income (Loss) A ddition to retained earnings
$1,209,600
Able-Learning Society Income Statement For the 12 months(2nd Yr Program) Ended June 30, 2012 Revenue: Net Sales
$6,336,000
Gross Profit (Loss)
$6,336,000
Expenses: Depreciation On job training cost for new therpist On job training cost for new Educational trainer Salaries Rent Miscellaneous Mandatory Provident Fund Contribution
$10,000 $30,000 $16,000 $4,698,000 $180,000 $50,000 $207,200
Total Expenses Net Operating Income
$5,191,200
$1,144,800
Net Income (Loss) A ddition to retained earnings
$1,144,800
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Appendix 6: Cash Flow Able-Learning Society Cash Flow Statement For the 12 months preparation period Ended June 30, 2010 Cash, beginning $ Opearting activities -$1,242,800 Net income Plus Depreciation $ 10,000 Net cash from operating activities -$ 1,232,800 Investment activities Fixed asset acquisitions Net cash from investment activities
-$ -$
300,000 300,000
Financing activities Increse in paid in capital Net cash from financing activities
$ $
2,000,000 2,000,000
Net increase in cash Cash, ending
$ $
467,200 467,200
Able-Learning Society Cash Flow Statement For the 12 months(1st Yr Program) Ended June 30, 2011 Cash, beginning $ 467,200 Opearting activities $1,209,600 Net income Plus Depreciation $ 10,000 $ 1,219,600 Net cash from operating activities Investment activities Fixed asset acquisitions Net cash from investment activities Financing activities Increse in paid in capital Net cash from financing activities
$
Net increase in cash Cash, ending
$ 1,686,800 $ 1,686,800
-
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Able-Learning Society Cash Flow Statement For the 12 months(2nd Yr Program) Ended June 30, 2012 Cash, beginning $ 1,686,800 Opearting activities Net income $1,144,800 Plus Depreciation $ 10,000 Net cash from operating activities $ 1,154,800 Investment activities Fixed asset acquisitions Net cash from investment activities Financing activities Increse in paid in capital Net cash from financing activities
$
Net increase in cash Cash, ending
$ 2,841,600 $ 2,841,600
-
Able-Learning Society Cash Flow Statement For the 12 months(3rd Yr Program) Ended June 30, 2013 Cash, beginning $ 2,841,600 Opearting activities Net income $1,104,000 Plus Depreciation $ 10,000 Net cash from operating activities $ 1,114,000 Investment activities Fixed asset acquisitions Net cash from investment activities Financing activities Increse in paid in capital Net cash from financing activities
$
Net increase in cash Cash, ending
$ 3,955,600 $ 3,955,600
-
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Appendix 7: Monthly Cash Flow
Month Cash beginning Opearting activities Investment activities Financing activies Cash ending
Able-Learning Society Monthly Cash Flow Statement For the 12 months preparation period Ended June 30, 2010 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 $0 $128,900 $257,800 $386,700 $515,600 ($37,767) ($37,767) ($37,767) ($37,767) ($37,767) $0 $0 $0 $0 $0 $166,667 $166,667 $166,667 $166,667 $166,667 $128,900 $257,800 $386,700 $515,600 $644,500
Dec-09 $644,500 ($37,767) $0 $166,667 $773,400
Month Cash beginning Opearting activities Investment activities Financing activies Cash ending
$40,179 $773,400 ($52,767) ($400,000) $166,667 $487,300
$40,330 $548,100 ($247,567) $0 $166,667 $467,200
Month Cash beginning Opearting activities Investment activities Financing activies Cash ending
Able-Learning Society Monthly Cash Flow Statement For the 12 months(1st Yr Program) Ended June 30, 2011 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 $467,200 $664,833 $286,467 $5,092,100 $4,713,733 $4,335,367 $197,633 ($378,367) $4,805,633 ($378,367) ($378,367) ($378,367) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $664,833 $286,467 $5,092,100 $4,713,733 $4,335,367 $3,957,000
Month Cash beginning Opearting activities Investment activities Financing activies Cash ending
Jan-11 $3,957,000 ($378,367) $0 $0 $3,578,633
$40,210 $487,300 ($52,767) $0 $166,667 $601,200
Feb-11 $3,578,633 ($378,367) $0 $0 $3,200,267
$40,238 $601,200 ($52,767) ($200,000) $166,667 $515,100
Mar-11 $3,200,267 ($378,367) $0 $0 $2,821,900
$40,269 $515,100 ($52,767) $0 $166,667 $629,000
Apr-11 $2,821,900 ($378,367) $0 $0 $2,443,533
$40,299 $629,000 ($247,567) $0 $166,667 $548,100
May-11 $2,443,533 ($378,367) $0 $0 $2,065,167
Jun-11 $2,065,167 ($378,367) $0 $0 $1,686,800
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Appendix 8: Data for calculation ďƒ˜
Salary:
Therapist =$30,000, ($22,500) during training period Educational trainer = $12,000, ($6,000) during training Ambassador = $8,000 Rent=$15,000 Miscellaneous expense= $50,000 per year Mandatory Provident Fund =5% of salary, $1,000 maximum per month Depreciation of office equipment =5% of book value per year Office fix up =$200,000 Course Design=$100,000 a lump sum payment for 2 writers and finished within 4 months ďƒ˜
Revenue
Under New Subsidy Mode For mild learning disabled, each is subsidized for $10,000 per year For intermediate to serious learning disabled, each is subsidized for $20,000 per year
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