Funding Propsal For: Department of Agriculture, Nova Scotia Government From: Nova Scotia SPCA Date: October 19, 2012
To: Dr. Leighann Hartnett
From: Kristin Williams
Provincial Vet and SPCA Liaison
Executive Director
Legislation and Compliance Services
Provincial Office
Department of Agriculture
Nova Scotia SPCA
Email: hartnelk@gov.ns.ca
Email: kwilliams@spcans.ca
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TABLE OF CONTENTS Summary of Content 1. EXECUTIVE SUMMARY Objective and Subject Overview of Service/Benefits to Nova Scotia The Need Recommendation Evidence and Action 2. PROFILE AND OVERVIEW OF THE NOVA SCOTIA SPCA About the Nova Scotia SPCA Mission Statement Vision Statement No Kill Model Accomplishments of the Nova Scotia SPCA About the Nova Scotia SPCA Inspectorate (Management and Staffing) 3. CHANGE, ACTIVITY AND PROPOSAL How does the Nova Scotia SPCA Stack up? Table #1: Investigative Cost Comparison 4. GOAL 5. CONNECTION TO ORGANIZATIONAL GOALS AND OBJECTIVES 6. POSITIONING 7. BENEFITS Table #2: Proposed Economic Savings 8. CURRENT REVENUES AND EXPENSES OF THE SPCA Table #3: Society Revenue Trends Table #4: Society Expense Trends 9. IF NOT? OTHER RESOURCES 10. COST SUPPORT 11. RISKS AND UNCERTAINTIES Table #5: Revenue and Expense Forecast with Funding Commitment 12. ALTERNATIVES AND COST SUMMARY Table #6: Forecasting Future Expenses of Government 13. IMPLEMENTATION AND MANAGEMENT 14. PERFORMANCE MEASUREMENT AND EVALUATION 15. CONCLUSION 16. APPENDENDICES AND REFERENCES 1. SPCA Statistics and Reports 2. October is proclaimed Cruelty Awareness Month 3. Animal Protection Act 4. SPCA Financial Statements, Minutes and Reports 5. SPCA Policies and Bylaws 6. SPCA Organizational Structure and Governance Model
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1. EXECUTIVE SUMMARY Objective and Subject The purpose of this program proposal is to secure annual core funding for animal cruelty investigations for the Nova Scotia SPCA. Core funding will ensure the long term sustainability of the Society by providing a predictable source of revenue, thus ensuring its ability to continue to provide a vital, lifesaving service. Overview of Service/Benefits to Nova Scotia The Nova Scotia SPCA is mandated by the Government of Nova Scotia to enforce the Animal Protection Act and to address companion animal welfare for the province. The Nova Scotia SPCA currently relies on donations to support this mission and mandate, which includes: 1. 2. 3. 4. 5. 6.
providing humane education; conducting cruelty investigations; preparing case files for prosecution; providing care and shelter to seized, surrendered or abandoned animals; providing veterinary care; and providing adoption services.
In 2011, the Society saved 8,005 animals, fielded 18,000 calls on animal welfare issues and conducted 1,608 investigations. The Society has a 100% conviction rate. Demand for services continue to rise each year and so far in 2012 intake is up by 16% and cruelty investigations are up by 8% over last year. The Society is the leading animal welfare organization for the province and the last line of defence for animals in need. The Need The Society has provided animal welfare services to Nova Scotia since 1877, but is no longer in the financial position to continue to provide these services for free. The Society is looking to the Department of Agriculture as its partner in animal welfare, to provide an annual core funding commitment of $100,000. This is a significantly reduced request from the original 3 proposals submitted, as the Society has been able to develop additional funding opportunities to offset a greater financial commitment by government. Recommendation The Nova Scotia SPCA is hopeful that Government will implement this funding recommendation in the 2013 fiscal year. Evidence and Action This proposal will outline not only details of service of the Nova Scotia SPCA and it ongoing commitment to excellence, but a compelling opportunity to save tax payer dollars. The Society is proposing to adopt the responsibility farm animal welfare and associated cruelty investigations from the Department of Agriculture. This will permit government to save money and/or allocate funding to alternative areas of need; ultimately helping the Government of Nova Scotia meet its goal of a balanced budget. 3
2. PROFILE AND OVERVIEW OF THE NOVA SCOTIA SPCA About the Nova Scotia SPCA The Nova Scotia Society for the Prevention of Cruelty to Animals (Nova Scotia SPCA): Protecting animals from cruelty since 1877, the Nova Scotia SPCA is a registered charity, comprised of a network of Branches, which rely primarily on volunteers and donations to fund animal protection; care and rehabilitation; advocacy; and humane education. The Animal Protection Act mandates the Society to enforce animal cruelty laws, making the Nova Scotia SPCA unique among animal welfare organizations in the province. To learn more, visit www.spcans.ca. Mission Statement The mission of the Nova Scotia SPCA is to prevent abuse, neglect and cruelty to animals, and provide for province-wide leadership on matters that promote and improve the welfare of all animals through animal protection; care and rehabilitation; humane education; advocacy and engagement and collaboration with stakeholders. Vision Statement The vision of the Nova Scotia SPCA is that Nova Scotia be a No Kill province and a safe place for all animals with zero tolerance for animal cruelty. No Kill Model The guiding principles of the SPCA’s No Kill model focuses on increasing live release1 rates with a commitment of attaining a record of 90% or higher. All healthy and medically treatable animals will be given every opportunity for adoption and euthanasia will only be reserved for reasons of mercy or aggression. Killing for space is not an option. Accomplishments of the Nova Scotia SPCA Over the last three years, the Nova Scotia SPCA has increased live release rates from 65% to 92% province-wide and established Nova Scotia as the only No Kill province in Canada. The Society has achieved a 100% conviction rate for companion animal cruelty investigations. The SPCA has also been recognized as a leader in animal welfare internationally with seven industry awards in the categories of: Wellness (2010), Education (2010), Leadership (2010), Sheltering (2010), Communications (2011), Media (2011), Homing (2012) and Volunteerism (2012). About the Nova Scotia SPCA Inspectorate (Management and Staffing) The modest inspectorate of the Nova Scotia SPCA is comprised of a Chief Provincial Investigator and two Provincial Special Constables. All are appointed as peace officers by the Department of Justice and each appointment is approved by the Minister of Agriculture. 1
Live release rates correspond to euthanasia rates. Live release rates account for the percentage of animals released from the SPCA through adoption, return to owner or transfer. Correspondingly, the euthanasia rate for the SPCA is 8%, the lowest in the country for a provincial network.
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Each investigator is professionally trained. Each year, the Society identifies a number of training opportunities to strengthen core competencies of the inspectorate. Much training is donated, sponsored or discounted. Most training is secured through the Canadian Police Knowledge Network, which is used by police services throughout the country. In 2011, training included, but was not limited to: Characteristics of Armed Persons, Critical Incident Stress Management for First Responders, Interviewing Techniques, Introduction to Disclosure, Recognition of Emotionally Disturbed Persons, Occupational Health and Safety, Search/Seizure and Warrantless Entries, Forensic Evidence Collection, Regulatory Enforcement Training, Photography and Handling Aggressive Dogs. So far, training for 2012 has included: Investigation Skills, Personal Protection Strategy for Infection Protection and Control, Police Ethics and Accountability, Deception Detection Techniques, the Theory of Truth and Deception, and the Theory of Communication and Memory. 3. CHANGE, ACTIVITY AND PROPOSAL How does the Nova Scotia SPCA Stack Up? Currently, the Society and the Department of Agriculture share in the responsibilities of enforcement, with the Department handling farm animal welfare and the Society handling companion animal welfare. The Department of Agriculture investigated 141 cases in 2011. In 2011, the number of farm animal cases increased by 40% from 2010. For the Nova Scotia SPCA, the number of cases increased by 22% for companion animals in 2011 over 2010. The table below (#1) provides an overview of comparators for the Nova Scotia SPCA, the BC SPCA, the ON SPCA and the NS Department of Agriculture (DoA) in terms of investigation costs and activities. Table #1: Investigative Cost Comparison Number of Investigations Full Time Investigators Total Investigator Salary Cost Average Number of Cases per Investigator Average salary of Full Time Investigator (including senior investigators) Average Salary Cost per Investigation Variable Incremental Costs per Investigation Direct Costs per Investigation
NS SPCA 1,608
BC SPCA 7,013
ON SPCA 15,000
NS DoA 141
3
26
30
2
$115,000
$1,138,000
$1,177,000
$150,939
536
270
500
71
$38,000
$43,769
$39,233
$75,469
$72
$162
$78
$1,070
$51
n/a
$254
$487
$123
n/a
$332
$1,557
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Notes: Salary costs are based on actual 2011 costs as reported. Variable costs are comprised of fuel and vehicle expense, veterinary costs and investigation expenses. Facility costs are not included, but are minimal for the SPCA as rent is donated. The Ontario SPCA reports that the number of cases was estimated to be 15,000 with at least 1,600 relating to farm animals. They also report a change in case file management for 2012 to 300 cases per investigator. The Ontario SPCA receives core funding of 500,000 per year, plus they received additional funding for infrastructure renewal ($5 million) and for vet clinic development. BC SPCA does not receive core funding, but is eligible to receive funds through the Lottery, which the Nova Scotia SPCA is not eligible to do.
Both the ON SPCA and the BC SPCA along with the majority of other provinces in Canada address both companion animal and farm animal welfare. Ontario and British Columbia were selected for this comparison as they are the only two other provincial humane organizations with the same mandate and with networks of branches or affiliated agencies. All other provinces are comprised of regional, independent humane organizations. The provincial network of branches in Nova Scotia provides for effective means to prevent and address cruelty. With reference to Table #1, the Nova Scotia SPCA has achieved the highest efficiency rates in terms of investigations related cost. Full time salary costs and other directly attributable investigation costs are 63% less than the next most efficient provincial SPCA polled and 92% less than the NS Department of Agriculture. 4. GOAL The Goal of this proposal is to secure annual core funding to support cruelty investigations for the province of Nova Scotia. The Society is proposing to amalgamate companion animal welfare and farm animal welfare to be carried out by the Society exclusively as a way to achieve this goal. As a result, the Nova Scotia SPCA would be able to help Government save tax payer dollars, improve breadth, efficiency and responsiveness of the inspectorate, and ensure the Society financial sustainability long term. 5. CONNECTION TO ORGANIZATIONAL GOALS AND OBJECTIVES The Nova Scotia SPCA has a respected profile with donors, government stakeholders and the judicial community. The Society has a 100% conviction rate and a professional inspectorate with extensive training, with a commitment to continually invest in additional training to keep performance levels high. The charitable mandate and the legislative mandate of the SPCA are aligned with expanding the inspectorate and addressing the needs of vulnerable farm and companion animals alike in Nova Scotia. Currently, the Nova Scotia SPCA carries out cruelty investigations for companion animals for the province. Prior to legislative change in 2010, the Society also carried out cruelty investigations for farm animals, so the Society has the necessary experience with the portfolio. These responsibilities were absorbed by Government to save the Society expenses associated with this portion of the portfolio; however data shared in Table #1 suggests that the absorption of these costs has not been economical sensible for Government, nor has it increased the financial sustainability of the Society. 6. POSITIONING According to the 2011 farm animal report, 141 cases were investigated and 75 animals were seized or surrendered to the Department of Agriculture. By adding another investigator to 6
the SPCA’s inspectorate, the SPCA would not only be able to absorb the farm animal file, but also reduce overall case load per inspector to a more ideal 430 approximate files. With current salary averages at the SPCA, two inspectors could be added, reducing case file load to approximately 350 cases per inspector which is closer to industry best practices. The Ontario SPCA has a projected case load average of 300 per investigator for 2012 as a point of reference. Also significant to note is that currently wages for the Department of Agriculture are nearly twice that of the SPCA. Therefore, by absorbing farm animal welfare, the SPCA could actually expand the inspectorate, enhance front line resources and responsiveness, and still save Government’s current spending on animal welfare. The SPCA is in a better position to deliver these services at a savings to tax payers, while still delivery quality investigations. Additionally this will enhance the flexibility of Government to address other priorities. 7. BENEFITS Table #2 – Proposed Economic Savings 2011NS SPCA Labour Budget: $115,000 Overhead: $82,008 Total Cost*: $197,008 Case File Load per Inspector: 536
2011 NS DoA Labour Budget: $150,939 Overhead: $68,667 Total Cost: $219,606 Case File Load per Inspector: 71
2013 NS SPCA Labour Budget: $190,000 Overhead: $89,199 Total Cost: $279,199 Case File Load per Inspector: 350
2013 NS DoA Labour Budget: $0 Overhead: $0 Total Cost: $0 Case File Load per Inspector: 0
Note: 2013 projections are using 2011 actuals as a point of reference. Actual projections would need to consider inflation. Numbers have been rounded. For comparison purposes, DoA’s numbers for 2011 do not include $3,000 given annually to the SPCA (the current financial commitment, which is addressed later in this proposal).
In 2011, the SPCA and the Department of Agriculture spent a combined cost of $416,614 on cruelty investigations. The Nova Scotia SPCA can absorb farm animal welfare for a combined cost of $279,199, which is more than 47% less in overall spending! The Government’s commitment of funding of $100,000 to the SPCA is more than a 54% savings off the current operational budget. 8. CURRENT REVENUES AND EXPENSES OF THE SPCA Table #3 – Society Revenue Trends Revenues Donations Grants Bequests Adoptions Recoveries Total
2009 $333,961 $107,178 $103,819 $165,605 $6,442 $717,005
2010 $538,089 $15,500 $47,127 $219,614 $2,452 $822,782
2011 $514,017 $3,000 $97,169 $263,991 $26,786 $904,963
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As evidenced by the above Table (#3), the Society continues to increase revenues year after year. An important trend is the shift to growth in more predictable revenue sources, such as diverse donor programs, including corporate support, plus adoptions revenue and recovery from case expenses through court ordered restitution. Revenue from bequests and grants are difficult to predict, so the Society has necessarily refocused efforts to programs that yield more reliable results. As a result, the Society has increased revenue by 26% in two years. Donations have increased by 54% and adoptions revenues have increased by 59%! Table #4 – Society Expense Trends Expenses General Animal Care Cruelty Animal Care Investigations Office Rent Investigator Wages Vehicle Expense Total
2009
2010
2011
$286,170 $114,471 $22,416 $21,097 $113,640 $26,502 $298,126
$247,888 $57,014 $8,783 $21,918 $113,640 $31,613 $232,968
$227,064 $45,412 $7,622 $0 $115,000 $28,983 $197,017
Note: The above table totals costs are associated with investigations only and general animal care is shown for the purposes of trending information and as a reference.
As evidenced by the above Table (#4), the Society has drastically cut general administration costs and substantially or wholly eliminated expenses related to rent, investigation support costs and training. Veterinary expenses have been capped, despite significant increases in intake. Overall, investigative expenses have been reduced by 34% in just two years. Not only has income increased, which has been largely accomplished through building a successful profile with donors, but the Society has turned its adoption services into an effective revenue source through cutting costs, improving efficiency and more effective fiscal management. As a result, adoptions and fundraising are currently funding cruelty investigations. The Society’s growth in revenue has happened alongside cuts in spending by Government and pressure to balance the books. The SPCA is in a position to help Government meet that obligation to tax payers. 9. IF NOT/OTHER RESOURCES The Nova Scotia SPCA is invested in many strategies for long term, financial sustainability. Many of these strategies are very innovative and will morph the SPCA into a hybrid organization, more akin to a social enterprise, which is a cutting edge non-profit fiscal strategy. One project is in collaboration with the Department of Justice and will see offenders and officers offsetting labour strain through volunteer programs and a new canine therapy program to assist both dogs and offenders mutually achieve goals of skill development and socialization. This program will help dogs with behavioural challenges become more adoptable and offenders develop skills to be more productive in society. This will enhance adoption revenues as well as offset labour strain devoted to training and animal care. 8
Another initiative was just approved through the Nova Scotia Veterinary Medical Association and will permit the Society in partnership with its Chief Provincial Veterinarian to make application to open a veterinary clinic as part of its shelter in Halifax, with potential other clinics to open in future. This process has taken 2.5 years to develop and will not only further reduce veterinary expense, but release the associated cap on intake, which necessarily is affected by budgeted veterinary costs. And, most importantly, this initiative also opens a new revenue stream because services will be offered to low income families and other rescue groups. The equipment for the clinic has already received approved funding and infrastructure improvement costs are modest. This initiative will make veterinary care expenses even more predictable and stable and secure additional revenues which are estimated at $104,000 per year starting in mid 2013. A final program is very unique. The Society has partnered with the province’s lead wind engineer and been approved through the Department of Energy’s COMFIT (Community Feed in Tariff) program for three applications representing 14 megawatts of wind power installations. The Society has secured the eligibility status through its role in providing community benefit (in provision of its mandate in the corresponding communities where the installations will take place). As a result, the Society will start to earn dividends in 2014 with no financial risk or investment. Preliminary estimated revenues are based on a per megawatt basis, per year for the lifecycle of the project (approximately 25 years, totalling approximately $100,000 per year). It is important for stakeholders to understand that the Society is invested in long term approaches to ensure its vital mission and mandate can continue to be achieved. However, it is important to also understand all dimensions of the Society’s current financial condition. 10. COST SUPPORT Currently the Society receives $3,000 annually from the Department of Agriculture. All other revenue to fund the SPCA’s mission and mandate is secured through adoptions revenue and fundraising programs. The operating budget for the 2012 year is $1,011,9442, with a projected deficit of -$188,928. The Society is currently offsetting this deficit with investment income; however investments will effectively be gone by the end of 2014 or sooner without Government support. As donor programs continue to mature and other revenue streams come on line, the Society still perceives challenges in managing the increase in demand for services. 11. RISKS AND UNCERTAINTIES The Society continues to decrease expenses, while increasing scope and this is not a model that can be maintained without financial support from Government. Intake for 2012 has already increased by 16% and cruelty files have increased by 8% so far. The Nova Scotia SPCA is challenged by the perception that the SPCA is, or should be, government funded, because of the “police-like” services of inspectorate, and the Society’s legislated mandate and accountability to the Department of Agriculture. 2
Budget includes the Provincial Office and Provincial Animal Shelter only. All Branches are financially independent, but do not and could not fund cruelty investigations and are at times reliant on Provincial for operational support. Branch operations are focused on intake and adoption services along with humane education, which directly ties to the provincial mandate to prevent cruelty.
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In the last two years, the Society has introduced very successful fund development programs, previously relying almost exclusively on wills or bequests that could not be anticipated, or on investments, which are now dwindling. The Society has been relying on its investments to address operational deficits, but these investments will not last and the Society will be forced to reconsider its scope of services within the next 2 years in order to balance the budget. Table #5 – Revenue and Expense Forecast with Funding Commitment from Government NS SPCA 2012 Revenue: $1,011,944 Expenses: $1,186,520 Variance -$188,928
NS SPCA 2013 Revenue: $1,229,250 Expenses: $1,399,250 Variance: -$170,000
NS SPCA 2014 Revenue: $1,450,250 Expenses: $1,422,927 Variance: $27,323
Note: The above table considers income from Government starting in 2013, income from the vet clinic beginning in mid 2013, and income from COMFIT beginning in 2014. 2013 expenses include corresponding expansion of the inspectorate for farm animal welfare and to reduce case load, and resources to support the veterinary clinic. 2014 numbers include a modest wage increase (frozen from 2011) of 3%. Adoption revenues have been calculated to increase 10% each year, where donation revenues are calculated to increase 5% per year. Inflation has not been budgeted for this comparison.
As evidenced by the above table (#5), the SPCA will become financially stable in 2014 with the help of Government and new programs. The Society can then start to address major infrastructure renewal that has not been attended to, despite aging infrastructure and capacity constraints. The Society can also start to rebuild some reserves for emergency purposes, such as large seizures associated with hoarding and mill operations. It will also allow for the Society to consider expanding labour resources to address the burdening increase in demand for services. 12. ALTERNATIVES AND COST SUMMARY Should the Society no longer be able to provide investigative services, the current legislation would download these services on to the Department of Justice, as police services are the only other body who can enforce provincial legislation. Should Government have to absorb the costs of investigations based on the current spending model the following projections show significant increases in Government spending to continue to offer services that are currently in place and have become expected by the communities of Nova Scotia. Table #6 – Forecasting Future Expenses of Government Current Spending NS DoA: $222,606
Proposed Spending NS DoA: $100,000
Spending w/o SPCA Support Government: $2,723,193
Note: The above calculation is based on 2011 case load of 1608 (SPCA) and 141 (DoA) multiplied by DoA’s current cost per investigation of $1,557. The current spending by DoA is based on the operational budget for farm animal welfare $219,606 plus the current $3,000 annual commitment to the SPCA.
As evidenced by the above table (#6), Government spending would increase 12 fold should the SPCA not be in the financial position to continue to deliver investigative services. The only alternative would be to retract all spending and cease to provide animal welfare services to Nova Scotia. 10
The investment of $100,000 annually is not only affordable and a savings to Government, it is the correct ethical choice to preserve these vital, life saving resources to animals in need. The Government is clearly committed to animal welfare, as demonstrated by its progressive actions to revise and strengthen animal cruelty laws and by its official proclamation of October as “Animal Cruelty Month”. 13. IMPLEMENTATION AND MANAGEMENT The SPCA proposes that with the commitment of funding for 2013, the SPCA would be able to absorb farm animal calls with 6 weeks’ notice. The transition would require changes to the current legislation to allow the SPCA to respond to farm animal welfare. Community education stewarded jointly by Government and the SPCA would also be prudent. Aside from these matters, the transition would be essentially turn-key from the SPCA’s perspective. 14. PERFORMANCE MEASUREMENT/EVALUATION The SPCA is committed to transparency and accountability. Currently, the Department of Agriculture requires of the SPCA a copy of its annual report and audited financial statements. However, additionally, the Society prepares quarterly statistics concerning animal cruelty activities, which are posted in aggregate form on line. These statistics cite infraction types, environments and species at risk. Number of cases per geographic region and other trends are also profiled. The SPCA would continue to provide this data as well as an annual program report to Government with details regarding case file results, training, program development and successes at the SPCA. Audited financial statements and the Society’s regular annual report would also continue to be provided. The SPCA is also committed to the most effective policy development to govern investigative activities. Our procedures are based on RCMP best practices and have been developed by a veteran executive of the RCMP with over 34 years of devoted service. In addition to the bench strength that the Society offers in terms of its inspectorate, the Society has a Chief Provincial Veterinarian with many years of direct experience in cruelty investigations and over 15 years of experience in shelter medicine. Governance of the Society is also of primary import and as demonstrated by our bylaws, polices and governance model, the Society has a strong commitment to professionalism, accountability and excellence. 15. CONCLUSION The Nova Scotia SPCA would like to thank the Department of Agriculture and the Government of Nova Scotia in advance for consideration of this proposal. Through collaboration, we can achieve a more compassionate society for animals.
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1. 2. 3. 4. 5. 6.
16. APPENDENDICES AND REFERENCES SPCA Statistics and Reports: http://www.spcans.ca/about-us/statistics.html October is Proclaimed Cruelty Awareness Month: http://www.spcans.ca/documents/GEN_cruelty-proclamation_2012.PDF Animal Protection Act: http://www.spcans.ca/images/files/amended%20animal%20protection%20act.pdf SPCA Financial Statements, Minutes and Reports: http://www.spcans.ca/aboutus/minutes-and-reports/2012.html SPCA Policies and Bylaws: http://www.spcans.ca/about-us/policy.html SPCA Organizational Structure and Governance Model: http://www.spcans.ca/aboutus/organizational-structure.html
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