Remedial actions seek to address financial crisis at House of Mercy
House of Mercy provides a vital service as a drug and alcohol rehabilitation centre.
During this time last year, the House of Mercy Rehabilitation Centre found itself trapped in a financial crisis.
At the time, the management and board of House of Mercy in response to the crisis introduced certain remedial actions in an attempt to turn the fortunes of the organisation around.
This is according to House of Mercy board chairperson Clement Minnaar who delivered the presidential report at the AGM on March 27.
“The organisation lacked funding as it found itself in a situation where it was unable to pay staff salaries as well as VAT and payroll taxes,” said Minnaar.
Minnaar said the board at the time undertook to review of the costing model as well as the fees structure of House of Mercy and introduced an increase in the fees being charged for private patients.
“The board also introduced certain marketing interventions to try and improve the number of private patients. They also lodged a formal appeal to SARS for a compromise on VAT and payroll taxes that were outstanding.”
According to Minnaar a review of the financial statements of House of Mercy revealed that it could not solely rely on the subsidy from the Department of Social Development for its survival and that it was essential that the other sources of income be secured.
Even funding from the National Lotteries Board was not as fortunate to alleviate the financial problems.
“The management and the board met in September 2017 to review its strategic objectives and also agreed to introduce certain marketing initiatives such as the introduction of a new website, making better use of social media and many more.
“These initiatives were aimed at improving the private patient intake over the medium to long-term.”
House of Mercy director Monica Mashiane presented her director’s report, stating that despite the centres financial problems the staff of House of Mercy have continued to show 100 per cent commitment to their work.
“We have seen three of our staff members resigning but we were able to replace these positions with new members.”
Mashiane said they have been blessed with staff members that are dedicated professionals and very caring even when under extreme pressure.
“It is also with great pleasure that we mention that our partnership with the Department of Social Development continues.
“We are grateful for all the support we receive from the department because without their support we do not know where House of Mercy would be today.”
Contact House of Mercy on 011 894 4050/2 or email velma@execmail.co.za.
