Magnolia Therapeutic Solutions Case Study Essay - 1099 Words

Magnolia Therapeutic Solutions Case Study Whittni Summerlee University of Phoenix BSHS/373 Financial Management in Human Services Frieda Flowers January 24th, 2010 Magnolia Therapeutic Solutions Case Study Magnolia Therapeutic Solutions is a well known nonprofit that provides psychotherapy for clients with Post Traumatic Syndrome Disorder (PSTD). Magnolia contributed several hours of intensive help to the victims of 911. In return NYC gave the organization a large grant to help it meet the demands of PSTD services. Mary Stewart, the founder of the organization believed that the grant given in 2001 would be renewed in 2002 as well. Much to her surprise the grant was not renewed. The grant was already factored into†¦show more content†¦3). Causes Behind the Ultimate Problem There were several causes behind the ultimate problems Magnolia suffered. This seems to have stemmed from the lack of accountability and responsibility with the financial management. First, Mary had written a budget based on funds that were not guaranteed. She even based raising money for the organization on higher grants for 2002. Since the 2002 budget was written on false grants, this caused a huge problem and several staff members got laid off. This caused the organization to come to a stand still. This problem could have been solved a few different ways. Either by writing a budget with the grants and funds Mary knew 100% would be available. Or she could have written the budget with the NYC grant and had a back up budget incase it was not renewed. This way the board of directors could have seen either way Mary had a budget that could actually be carried out. Secondly, in 2001 the organization used the remainder of the grant to â€Å"increase oth er administrative services.† The surplus from the grants in 2001 should have been budgeted into the growing organization and the services provided, not administrative services. â€Å"The identification of a human service agency’s programs, the creation of a program structure, the assignment of program managers, and the designation of responsibility centers are the basic building blocks of