Written Business Plan Evaluation

rosecity.pdf

Home >Business & Finance homework help >Management homework help >Written Business Plan Evaluation

RoseCity Respite Center

A not-for-profit organization dedicated to providing temporary relief to the caregivers of Southeast Portland and surrounding

communities.

John Goshorn BA 499 – Fall 2003 Dr. Andy Dungan

Table of Contents

Page

Executive Summary 1

Company Description 2

Industry Analysis and Trends 3

Target Market 6

Competition 8

Strategic Position and Risk Assessment 10

Marketing Plan 12

Leadership and Volunteers 13

Operations 16

Social Responsibility 18

Development, Milestones and Exit Plan 19

Financial Assumptions 20

Financial Statements 22

Appendices 31

Bibliography 35

Executive Summary

The Concept The elderly population of the United States is growing faster than any other age demographic in the United States. This same population of individuals age sixty-five and over are also the most common demographic to suffer from Alzheimer’s Disease and other forms of dementia. Children, other relatives and friends are the primary caregivers of these individuals who suffer from such diseases and often sacrifice much of their own time to attend to the needs of these “care receivers.” Relief can be provided to caregivers who need to complete other tasks or simply want time to themselves. Temporary respite care is an excellent solution for many of these caregivers that, at the same time, presents a safe and stimulating environment to the care receiver. This type of care is not only available at a lower cost than long-term facilities, but also keeps the individual in their home or the home of the caregiver. The Organization RoseCity Respite Center is beginning services at a time when respite services are in high demand and underserved in the Portland Metropolitan Area as well as across the United States. Operating as a not-for-profit organization, RoseCity Respite Center will focus on the mission of providing the highest quality temporary relief to caregivers, while at the same time provide a stimulating atmosphere for care receivers. The Center schedules daily activities, as well as provides lunch in an environment that promotes socialization which many care receivers would have never experienced had they not attended. The Market The Center will target caregivers of individuals suffering from Alzheimer’s Disease and other forms of dementia sixty-five and over who reside in the Portland Metropolitan Area. As the largest city in the state of Oregon, Portland and its surrounding communities contain an ideal population for RoseCity Respite Center to operate; Multnomah County, the county in which the Center will operate has the greatest need for respite services compared to all other counties in Oregon. Competitive Positions Currently, the services demanded by caregivers are not being met in Multnomah County. Recent studies have determined that Multnomah County can adequately support several new centers. RoseCity Respite Center, with its employees and volunteers are prepared to provide a much needed service to this underserved population. Management Team The organization’s operations will be directed primarily by an eight member Board of Directors composed of community members and industry professionals. Although program staff is primarily hired by the Board of Directors, day-to-day activities will be managed by the Program Administrator and Program Director who report to the Chairman of the Board of Directors.

The Program Administrator will bring a wealth of knowledge to the Center with at least a Bachelors degree in psychology or social work and have experience working in an adult day care facility. The Program Director will have experience in working with people with dementia and will preferably have a Bachelor’s or Master’s degree in psychology, social work or a related field. The Future In the long-term, RoseCity Respite Center hopes to expand services to allow more care receivers to attend activities at the facility, thus provide respite to more caregivers. The Center also hopes to reduce the amount of funding obtained from government sources and become nearly self-reliant. Lower client fees is also a goal of the Center, this will allow lower income caregivers the opportunity to utilize the Center’s services without experiencing additional financial difficulty. Funds Sought/Financials The organization expects to seek one long-term loan in the amount of $20,000 which will be used for initial start-up costs including furnishings, marketing costs and consulting fees. The Center anticipates this loan will be paid back by the end of the tenth year of operations. RoseCity Respite Center expects to follow the trend of new adult day care centers by experiencing positive net income in the fourth year of operations.

Organization Description

Mission Statement RoseCity Respite Center, a not-for-profit organization, will offer non-medical, temporary relief for caregivers tending to the ongoing needs of frail, elderly individuals (care receivers) suffering from Alzheimer’s Disease or other cognitive disabilities. Based in the Hawthorne District of Portland, Oregon, RoseCity Respite Center will begin services in June of 2004. Primary clientele will include caregivers and care receivers residing in or around Southeast Portland. Services RoseCity Respite Center will exist for the dual purpose of serving both the caregiver and care receiver. As a social model adult daycare facility, RoseCity Respite Center will provide temporary relief to caregivers of elderly individuals who have experienced a stroke or suffer from Alzheimer’s Disease or other dementias. This respite provides time whereby the caregiver can complete necessary tasks, work outside of the home, or simply relax “worry free.” In addition to assisting the caregiver, RoseCity Respite will provide a stimulating, safe and active environment for the care receiver who otherwise might have never had the opportunity to interact in such an environment.

Site and Activities Participants will enjoy a comfortable environment furnished with ergonomically correct chairs, tables and couches, among other amenities. The single story building will allow for easy access and will comply with the Americans with Disabilities Act’s standards for accessibility. The facility will be decorated in both stimulating and tranquil décor that promotes movement or relaxation, depending on the intended activity. RoseCity Respite Center staff and volunteers will design a diverse assortment of individual and group activities including arts and crafts, games, sing-a-longs, exercise and videos. RoseCity Respite Center will also provide onsite lunch which will be supplied by Meals on Wheels’ Golden Cuisine food service program. These meals will include pasta dishes as well as beef, chicken, seafood and vegetarian entrées. Snacks throughout the day will be provided as well. Legal Status and Management RoseCity Respite Center will be formed as a charitable organization in order to qualify under Section 501(c)(3) of the Internal Revenue Code. The center will operate under the direction of a Board of Directors and two primary onsite individuals, a Program Administrator and a Program Director. Input from community members, caregivers and donors will be a significant factor in determining how the Center is run as well as provide valuable recommendations as to ways in which services can be improved. Elements of Success/Goals for the Future At RoseCity Respite Center, success will be based on several fundamental achievements:

The Center’s ability to keep elders out of institutionalized care The Center’s ability to lessen the mental and emotional strain on the caregiver The Center’s ability to minimize the financial burden assumed by the caregiver

The Center’s ability to increase the quality of life of the care receiver The Center’s ability to spread community awareness of the issues facing

caregivers and care receivers Industry Analysis and Trends

Respite Care Services on the Rise A steady increase in the number of not-for-profit organizations and the demand for the services they provide has occurred continuously as the population of the United States ages. RoseCity Respite Center will penetrate this growing demographic in the Portland Metropolitan Area and Multnomah County as a whole.

In 1990, Americans age 65 or older numbered 31 million. By 2005, this number is expected to reach 35 million, with individuals 85 and older making up the largest portion (Employment Development Department, 1996). According to a report produced by the Robert Wood Johnson Foundation (2001), “the two most prevalent conditions [care receivers suffer from] are dementia (52%) and frailty (41%). Of those who are considered frail, 80% are cared for at home by one or more family member(s). Nationally, this population is served by 3,407 adult day care centers. Twenty-one percent of these care centers are based on a medical model which provide medical services and assistance, while 37% utilize a social operating model which offer no medical services or assistance. Trends indicate adult respite centers are shifting to a model that combines these two versions in order to better serve the needs of caregivers (Robert Wood Johnson Foundation, 2003). Counties across the United States are lacking adequate respite resources with 56% of counties underserved (1,770 counties out of 3,141). The United States can support a total of 8,520 centers nationwide with 73% (3,991) of those centers being erected in urban areas. Multnomah County alone needs twelve new centers, the most of any county in the state of Oregon (Robert Wood Johnson Foundation, 2003). Industry Maturity With 5,415 new adult centers needed nationwide, the adult respite care industry is still expanding (Robert Wood Johnson Foundation, 2003). Caregivers are beginning to realize assistance is available and that long-term care is not the only viable option for out- of-home care. With twenty-four hour nursing facilities costing families an average of $30,000 annually, caregivers are discovering the cost efficiency of not-for-profit adult respite facilities (Employment Development Department, 1996). This realization, and the fact that the population is aging, is increasing the need for the creation of even more respite care facilities. Organizations in this industry collaborate with one another in an effort to expand services. This in turn leads to a more efficient industry in which a greater number of individuals can be served. Sensitivity to Economic/Financial Factors Since 1959, contributions to not-for-profit organizations have risen by an annual average rate of 3% per year. However, in recession years this amount has dropped by 0.7%. In an effort to counterbalance this trend, not-for-profits are having to operate more efficiently which, in turn, makes donated funds go further (Sullivan, 2001). Grant revenues, which often make up a substantial portion of not-for-profit revenues, are particularly vulnerable to economic fluctuations (Hallett, 2003). On average, adult day care services operate with 33% of services paid for by public reimbursements, 40% from private pay and 14% from grants and donations but these figures are changing. As stated earlier, recessions influence the amounts donated by one or more of these sources (Robert

Wood Johnson Foundation, 2003). However, according the Berta Varble, the Senior and Disability Services Manager of the Rogue Valley Council of Government, respite care facilities are having to rely more on clientele fees (90%) than any other form of revenue in the current economic state (Varble, 2003). Declining job rates produce a lower tax base, thus lowering revenues of state and federal governments who are the largest contributors to not-for-profit organizations. Personal discretionary income also decreases in times of economic hardship. This creates less donation revenue and an overall lower budget, as individuals choose to retain their money. Seasonal Factors Respite services are in demand year round, which requires a steady stream of funding in order to meet the needs of caregivers. These needs are met through funding that can, at times, be more difficult to generate in certain periods of the year than others. Competition for not-for-profit funding is aggressive throughout the entire fiscal year. Winter months however, primarily the month of December, tend to be the most competitive months of the year. Gift buying traditions sponsored by religious holidays, shorter work-weeks and a trend to support the poor, hungry and homeless often restricts available revenue sources for many not-for-profit organizations (Klein, 2001). Not-for-profits frequently develop innovative techniques such as promoting the idea that an individual can make a contribution in a friend’s name as a gift for holidays such as Christmas. These holidays and the revenues they generate increase funding for not-for- profit organizations such as RoseCity Respite Center. Regulatory Issues RoseCity Respite Center will file for federal tax exemption under Section 501 of the Internal Revenue Code by submission of Form 1023, Form 872-C and Form 8718. This status requires the organization to follow strict federal guidelines and submission of mandatory documents. In addition, RoseCity Respite Center will register with, and follow requirements mandated by the State of Oregon Department of Revenue. As a federally registered 501(c)(3), RoseCity Respite Center will be exempt from Oregon corporate taxes. Multnomah County tax exempt status will be applied for as well. Standards have been issued by the Oregon Department of Human Services regarding care requirements for adult day care programs. Registration procedures, program components, physical facility design, safety, staffing levels and administration requirements are all elements of the state’s standards (Oregon Administrative Rules, 2000).

In order to qualify for Medicaid and Older American Act funding, RoseCity Respite Center will follow guidelines set by the State of Oregon and the federal government regarding reporting and revenue usage.

Target Market

Market Description Operating in the Portland Metro Area, RoseCity Respite Center will target family caregivers in need of refuge from the everyday tasks of caring for a loved one. The Center’s primary focus will involve targeting those caregivers who take care of their loved one with little or no help from other family members. These same individuals often can’t afford the costs of long-term facilities or don’t want to place their loved one in that type of environment. RoseCity Respite Center’s primary geographic location provides clientele from the following cities located in the Portland Metro Area:

Portland Lake Oswego Gresham Oregon City Vancouver, WA

The Center will also accept clientele from vicinities outside of this geographic location who seek a modest, intimate setting for their loved one. These areas include:

Tualatin Troutdale Beaverton Hillsboro Camas, WA

Market Size and Trends The Portland Metropolitan Statistical Area (PMSA) is the largest and most densely populated region in the State of Oregon, consisting of 1,918,009 individuals in 2000. The city of Portland makes up 34.7% of this with a population of 665,810 (United States Census Bureau, 2000). Of Portland’s population, 209,336 (United States Census Bureau, 2000) individuals are between the ages of 35 and 64, the age group which makes up 79% of all caregivers (Family CareGiver Alliance, 2001). Target Characteristics The typical caregiver profile is distinguished by several distinct categories which include age, race, gender, marital status and employment status. Studies administered by the Family Caregiver Alliance (2001) and the AARP (2001) suggest the average caregiver is a forty-five year old, white, married female, working full-time. Although married, caregivers typically provide care without the assistance of a spouse. (See charts on following page).

Employment Status of Caregivers

49%

13%

18%

20%

Full Time Part Time Retired Not Employed

Average Age of Caregivers

21%

37%

28%

14%

18 to 34 35 to 49 50 to 64 65 and older

Marital Status of Caregiver

63%12%

3% 12%

Married Divorced Separated Widowed Single, Living with Partner Single, Never Married

In addition to the qualities just listed, these individuals typically suffer some form of physical, mental and/or emotional detriment due to continual care of their loved one. An estimated 49% of female caregivers are clinically depressed. Caregivers are also two to three times more likely to use prescription drugs for anxiety, insomnia and depression than their non-care giving counterparts (Family CareGiver Alliance, 2001). RoseCity Respite Center will alleviate the burden that causes these ailments by providing a service that recognizes caregivers need to be taken care of as well. On average, caregivers afford twenty hours of assistance per week on care receivers over the age of sixty-five. This often reduces the amount of time a caregiver is able to work outside the home which places a burden on the family unit which is most commonly composed of a husband and wife (Family Caregiver Alliance, 2001). Psychographics Recent studies suggest that although a heavy burden is placed on caregivers, they tend to report a sense of satisfaction pertaining to the assistance they provide. RoseCity Respite Center will target caregivers who have an interest and commitment in the wellbeing of their care receiver. The care these individuals are providing offers a sense of satisfaction that, if they placed the care receiver in a long-term facility, would be non-existent. The

So ur

ce : w

w w

.c ar

eg iv

in g.

go v

So ur

ce : w

w w

.c ar

eg iv

in g.

go v

So ur

ce : w

w w

.c ar

eg iv

in g.

go v

diagram below exemplifies how caregivers feel about the care they provide to their loved one. Short-term care offered by RoseCity Respite Center will tap into and promote this overwhelming consensus of caregivers and the care they provide to their loved one.

Competition

A wide range of services offered by many organizations is available to caregivers and care receivers residing in the Portland Metropolitan Area. Competitors of RoseCity Respite Center fall into several distinct categories depending on the type(s) of services they provide. The service types of these competitors are as follows:

Short-term facilities (medical and social models) Long-term facilities (medical and social models) In-home respite services Community Centers

Other issues arise that may prevent an individual from utilizing the services provided by RoseCity Respite Center. These reasons include:

Caregiver’s reluctance to seek assistance Care receiver’s reluctance to attend respite programs

RoseCity Respite Center will be a social model adult day care center and does not intend to directly compete with organizations following a medical model, which consists of providing medical assistance to care receivers. The Portland Metropolitan Area contains varying types of adult respite care organizations. The competing service types mentioned above are discussed in further detail below: Short-term Care Providers: Short-term providers relieve caregivers of their duties for several hours per week while sparing the caregiver the guilt of placing a loved one in an institutional facility. These services can be accessed at an average rate of $54 per day, far below the average cost of long-term facilities which can costs thousands of dollars per week (Wake Forest, 2002). A detailed list of competitors is presented in the appendix. RoseCity Respite Center will operate in a manner similar to other short-term care facilities in the area and will bring a new energy to a much needed service. The Center

Feeling % Reporting Loving 96% Appreciated 90% Proud 84% Worried 53% Frustrated 37% Sad or Depressed 28% Overwhelmed 22%

will be positioned in an area that is currently underserved, and thus be able to make services available that otherwise would not have been as convenient or cost effective for caregivers. This will allow RoseCity Respite Center to actively compete with other short-term care providers in the area. Long-term Respite Care Providers: These services are provided to care receivers who need care for an extended period. Providers include assisted living communities, nursing homes and occasionally hospitals. RoseCity Respite Center’s advantage over this type of provider is that the care receivers are able to remain in their homes rather than permanently being placed in a senior facility. Long-term facilities can also be extremely expensive, costing up to as much as $30,000 per year and in many cases aren’t as personalized as temporary adult centers which have a lower staff to client ratio (Employment Development Department, 2001). In-Home Care Providers: Services provided by in-home care providers include companion services and assistance with personal care; citizens who are homebound generally receive such services. Those who provide these services range from for-profit organizations and not-for-profit organizations, to local and federal governments. These services also make transportation to and from an off-site center an unnecessary element for the caregiver and care receiver. RoseCity Respite Center recognizes this as a strength of in-home care providers and will attempt to overcome this by exemplifying the benefits of on-site care through the services provided. RoseCity Respite Center is interested in serving both the caregiver and care receiver and an in-home care provider is not able to do this as effectively as an on-site service is. Centers such as RoseCity Respite Center provide an environment that engages and stimulates the care receiver with activities and socialization, while at the same time accomplishing the mission of providing respite for the caregiver. Uninformed/Reluctant Caregivers Some caregivers are either unaware of available services or feel a sense of guilt when considering the use of respite care services. Often times, caregivers have sacrificed a great deal to keep their loved one in the home and refuse to allow any separation to occur. Along with other centers in the area and local hospitals, RoseCity Respite Center will attempt to increase public awareness of available services. In turn, this will educate the target market and bring in more clientele who are in need of our service but were originally too hesitant to seek help. Barriers to Entry Not-for-profit organizations constantly have to be concerned with adequate funding, proper staffing and attracting volunteers, especially organizations that are just beginning operations. The organizations currently operating in the Portland Metropolitan Area have already accessed operating funds, and have an established staff and volunteer base.

Accessing public and private monies not already consumed by other adult day care centers is of particular concern, especially in a time of recession. RoseCity Respite Center will attempt to acquire funding similar to that of organizations currently operating in the area, which includes private donations, federal and state grants and other forms of available funding. Because the need for twelve new centers exists, RoseCity Respite Center believes funding is available and is obtainable for new centers in the area if the required effort is applied. However, the Center plans on utilizing client fees as the primary source of funding. Future Competition: As stated earlier, a study funded by the Robert Wood Johnson Foundation (2003) found that Multnomah County is one of the 3,141 counties in the United States that is underserved. Multnomah County alone could adequately support twelve additional adult day care facilities. The aging population (those over 85 years of age are the fastest growing segment of the population) and a lack of caregivers will also cause more long-term facilities to open (National Family Caregivers Association, 2002).

Strategic Position and Risk Assessment

RoseCity Respite Center’s objective is to provide an outstanding adult day care service that allows caregivers to take a break and care receivers to socialize in a stimulating environment. Evaluation of the following items will determine RoseCity Respite Center’s Strategic Position in the adult day care industry:

Industry Trends Target Market Competitive Environment Strengths Risks

Industry Trends The Center is beginning services in a time unlike any other. The population of the United States is aging faster and faster, with individuals eighty-five and older holding the title of the fasting growing age group. Statistics show that counties across the country are underserved and need more adult day care facilities. This presents an opportunity for organizations such as RoseCity Respite Center to provide services needed by an aging population. Target Market RoseCity Respite Center’s target clientele are caregivers of persons over the age of sixty- five who suffer from Alzheimer’s Disease or other dementias; individuals over the age of eighteen can be targeted in this growing market. Younger and younger populations are

beginning to care for their elderly family members and friends, and can be targeted to receive respite service. RoseCity Respite Center will target females in their thirties, forties and fifties, however, because they make up the largest percentage of caregivers. Competitive Environment Many other adult day care facilities both long-term and short-term exist in the Portland Metropolitan Area. The centers that currently exist have the advantage of name recognition, funding and a clientele base, but room still exists for more centers to be opened. Management will have to work diligently to make the community contacts needed in order to continually offer necessary services. Strengths Strengths of RoseCity Respite Center are based on several distinct areas which include:

Dedication Support Quality Convenience

Dedication Staff and volunteers will have a clear vision of RoseCity Respite Center’s mission and will perform the duties necessary to ensure caregiver and care receiver needs are met. This will be accomplished through continuous staff training and a clear understanding of the Center’s mission. The wellbeing of caregivers and care receivers is of top priority to our staff and volunteers and this will be exemplified through the services provided by these individuals. Support Community support will play a vital role in the success of RoseCity Respite Center and it is believed that the surrounding communities will respond favorably to the Center’s mission. Not only will the community provide financial support, but also the time and energy of passionate volunteers. Quality Clientele will receive only the highest quality of care available for a fee unmatched by any long-term facility. This quality will be present in all the Center provides, including daily activities, meals served and the overall comfort level of the Center’s environment. Convenience The central location of the facility will benefit many caregivers in the Portland Metropolitan Area. Just minutes from Interstate 5, Interstate 84 and Downtown Portland, those traveling within the city or from Vancouver, Washington have a viable, convenient option for adult day care in their area. Portland’s public transportation system, with fully functioning bus service and an East- West MAX (Metropolitan Area Express) line provides a practical solution for those caregivers who don’t own a vehicle but still desire to utilize the services of the Center; a North-South MAX line traveling from Northeast Portland to Vancouver, Washington is

scheduled to open in September of 2004 which will provide an addition method of transportation. Risks Not-for-profit organizations assume risks not experienced by for-profit organizations, the primary of which is funding. RoseCity Respite Center recognizes that other not-for- profit and for-profit adult day care centers in the area have continually offered services and obtained funding throughout their years of service. On average is takes not-for-profit adult day care centers two to three years to breakeven and this is a primary concern. With an average annual budget of $200,000 to $250,000, debt can escalate substantially throughout the first couple of years if adequate funding is not obtained. It is clear that by not offering a medical component to our program all potential clientele may not be receiving assistance. Eventually this service may be added but at the present time, the staffing, volunteer and program supply costs would be far too great in number. Strategic Position Of the factors listed above, RoseCity Respite Center believes that obtaining adequate funding in comparison to competitors will be the most substantial task. Other centers in the area have already developed name recognition and a clientele base that will take RoseCity Respite Center time to establish. It will be the job of the staff and volunteers to disseminate information about the importance of the services provided and instill in the community that the center can provide it effectively and efficiently. Confidence exists that caregivers will recognize the benefits of this temporary social model program, and will respond by bringing their care receiver to the facility. Even with the numerous alternatives, it is believed that the services of RoseCity Respite Center will be accepted and utilized by struggling caregivers who seek options other than long- term care facilities. To realize the goals set forth for the Center, the Center will utilize all that the community, staff, volunteers, caregivers and care receivers have to offer; a culmination of all these efforts will be required in order for this to occur. The quality of activities, performance of the staff and overall commitment to the mission of supporting caregivers will ultimately lead to a successful adult day care facility.

Marketing Plan

At RoseCity Respite Center, caregivers and care receivers will receive individualized care and attention and the modest marketing strategy will promote the mission of the Center. Marketing Vehicles Word of Mouth RoseCity Respite Center will rely on this particular marketing vehicle heavily. Every person who mentions RoseCity Respite Center in a positive light is one more person who

can spread the message about the services provided. These remarks could potentially influence more individuals to seek out respite services. Because word of mouth does not cost anything, we can use program funds for more “mission specific” purposes. Yellow Pages Advertisement A brief Center advertisement including name, address and phone number will be placed in the local telephone book under the heading “Day Care Centers-Adult.” This marketing method will provide long-term advertising at a relatively low cost. Potential clients will also be able to access Center information anytime of the day from this type of advertising. Local Internet/Television Community Guides Postings on website guides are often free of charge and provide a great method for increasing the clientele base. Local television station KATU offers a free community billboard where not-for-profit organizations can advertise their services. Both internet and television advertising such as this will provide just another method of disseminating information about services. Brochures A brochure that includes the benefits of temporary adult day care, a list of activities, the Center’s address and hours of operation, participant thoughts and the mission will be created and distributed to area hospitals, churches and dementia specific organizations. Open House In an effort to demonstrate the activities of the organization and to familiarize the community with programs offered, an open house will occur prior to opening and once every three months after that. Once a stable clientele base is formed, and it is deemed that having an open house unnecessary, this marketing strategy will by discontinued. Strategic Partnerships RoseCity Respite Center will align itself with local churches, hospitals, elderly community centers and dementia specific organizations. This will lead to a variety of benefits that stem from referrals to the respite services provided. By connecting with these organizations, RoseCity Respite Center will be able to connect with the community and, more importantly, the individuals in the community who would benefit from respite services. Organizations like these often have an intimate relationship with their members and are likely to find assistance for them if they see the need.

Leadership and Volunteers

Management Structure/Style RoseCity Respite Center will operate in a capacity in which all individuals work in collaboration with one another. While the Board of Directors will lead the organization, everyone from the Program Administrator to the volunteers and community members will work to make certain the needs of caregivers and care receivers are met. The nearly

Board of Directors

Program Administrator Program Director

Program Aides Volunteers

horizontal structure of the organization represents a group-oriented approach to serving clientele, and reflects the passion of board members, employees and volunteers in an environment of camaraderie. Board of Directors A Board of Directors comprised of eight members will be established with primary activities consisting of hiring employees, performing program and employee evaluations and providing suggestions for future development. These members will be acquired from neighboring hospitals, community centers and senior centers, and will preferably have experience in dealing with issues affecting senior citizens suffering from Alzheimer’s Disease and other dementias. The practical knowledge, guidance and connections these individuals have with community resources will provide valuable elements to the Center’s success. Of the eight-member Board of Directors, a Chairman will be elected and will be available to RoseCity Respite Center employees, volunteers and community members on a continual basis. The Chairman will be the primary individual to whom the Program Administrator reports. Board members will meet quarterly to evaluate the program and make proposals on how to improve the program, if needed. Board member comments and suggestions will then be printed and distributed to Center employees and volunteers for examination and further input. Key Employees RoseCity Respite Center staff will be composed of seven paid employees and a volunteer base of at least twenty; no less than four volunteers will be present each day of operation. The paid staff includes one full-time Program Administrator, one full-time Program Director and five part-time Program Aides. Program Administrator The Program Administrator will partake in many of the activities necessary to run the Center. Some of these duties include supervising care receivers, ensuring the Center complies with state laws and regulations, scheduling employees and volunteers and overseeing all operations of the facility. Other duties include creating necessary reports and corresponding with donors, community members and consultants. The Program Administrator will also be the closest contact to the Board of Directors.

This individual must be Certified Pulmonary Resuscitation (CPR) trained in order to work in this capacity according to state law. In addition, the Program Administrator will preferably have at least a Bachelor’s degree in a related field such as psychology or social work and have experience working in an adult day care facility. Marketing functions will be supervised by this individual as well. The Program Administrator’s wage will be based on a forty-hour workweek and consist of the following hourly amounts: Year 1: $17.00 hour Year 2: $17.20 hour Year 3: $19.10 hour Program Director The primary tasks of the individual filling this position include developing program activities and a schedule for when the activities occur. This individual will be responsible for creating activities that are appropriate for individual care receivers and their ability to participate in those activities. In addition to working directly with the care receivers, the Program Director will work with the Program Administrator, Program Aides, volunteers, caregivers, Board members and community members in order to determine new and necessary program activities. Training and supervision of Program Aides and volunteers will be completed by the Program Director as well; this will help to ensure assigned duties are understood and accomplished by each individual. The Program Director will have experience in working with people with dementia and will preferably have a Bachelor’s or Master’s degree in psychology, social work or a related field. Patience and compassion will also be essential characteristics of the individual fulfilling the duties of this position. CPR training is also required in order to comply with state law. Program Director’s wage will be based on a forty-hour workweek and consist of the following hourly amounts: Year 1: $14.00 hour Year 2: $14.20 hour Year 3: $17.75 hour Program Aides Program Aides (along with volunteers) work most intimately with the care receivers by leading daily activities and assisting them with personal needs throughout the day. Because RoseCity Respite Center is a social adult day care facility, the extent of personal assistance performed by these individuals will be limited to assistance in the restroom (care receiver can only require the help of one individual in the restroom), with medication and with eating of meals.

As with the Program Director, the Programs Aides will have primary personality traits that include compassion and patience because they work so closely with the care receivers and these traits are essential to perform their duties. CPR training is required in order to comply with state laws. Program Aides’ wages will be based on a twenty-four hour workweek and consist of the following hourly amounts: Year 1: $9.50 hour Year 2: $10.00 hour Year 3: $11.80 hour Volunteers Volunteers are a necessary component to the success of RoseCity Respite Center. Volunteers will work closely with care receivers in daily activities and assist them with several personal needs, such as eating and assisting those with mobility problems around the facility. Volunteers will come to the Center from many different backgrounds. Among them will be high school students, college students and senior citizens from the surrounding community. Only individuals over the age of sixteen will be allowed to volunteer at the center and each must attend an introductory session with the Program Aide before volunteer service begins. Consultants RoseCity Respite Center will obtain assistance from professionals in two major business areas. • Lawyer- In order to ensure RoseCity Respite Center complies with state and federal

laws governing not-for-profit organizations, the Center will hire a lawyer prior to opening. The need for the lawyer will then be evaluated to determine if legal services are still necessary.

• Accountant- Necessary records and tax forms will be completed by an accountant

hired by the Center. This will ensure compliance with state and federal laws pertaining to record keeping and tax issues.

Operations

Facility RoseCity Respite Center will lease a ground floor, one level, 2,200 square foot building in the Hawthorne District of Southeast Portland. The facility will be comprised of five main areas which include an activity room, kitchen, restroom and two offices.

Design/Amenities RoseCity Respite Center will operate in a facility that promotes activity and socialization. This will be accomplished through the decoration and layout of the facility. Primary activities will occur in the activity room which makes up the most substantial portion of the facility. This room will be furnished with two large dining tables, twenty-five ergonomically correct dining chairs, two couches, three recliners and a twenty-five inch television equipped with cable. The Center will contain two offices, one for the Program Administrator and one for the Program Director. The Program Administrator’s office will be equipped with a computer and fax machine to allow for program planning and other business related activities. The facility’s restroom will be wheelchair accessible and will contain only a sink and toilet (RoseCity Respite Center is not a medical day care facility and therefore has no need for a bathtub or shower). The kitchen will only be used by program staff and volunteers and will contain a refrigerator, coffee pot and microwave. Sizes of the main facility areas are as follows: Enrollment Only care receivers requiring non-medical care will be enrolled at RoseCity Respite Center. A preliminary consultation with both the caregiver and care receiver will take place in order to evaluate the individual needs and the Center’s ability to meet those needs. Approved care receivers will then be enrolled through the completion of a registration form and contract agreement. Primary and emergency contact information as well as a medical condition file will be obtained and filed for each care receiver. A payment schedule will be designed for individual caregivers and eventually a sliding fee schedule will be developed to accommodate low-income caregivers. Hours of Operation The center will be open on Mondays, Wednesdays and Fridays between the hours of 8am and 3pm. Caregivers who fail to pick-up their care receiver by 3pm will be charged five dollars for every additional half-hour. Service Plan Most care receivers will arrive at the Center by 8am and stay until 3pm. The Program Director along with program aides and volunteers will begin daily activities with coffee and conversation for the first half-hour. See a typical schedule of activities in Appendix D.

Room Square Feet Activity Room 1000 Kitchen 240 Bathroom 65 Program Administrator's Office 185 Program Director's office 135

Meals Included in the daily fee is lunch provided by Meals on Wheels’ Golden Cuisine program. Meals will be ordered and delivered once per week and stored in the Center’s refrigerator. A variety of choices containing beef, chicken, seafood and meatless entrées are available. This allows RoseCity Respite Center to accommodate food preferences of individual care receivers. Some of the menu choices include chicken breast, spaghetti, stew, mashed potatoes, cheese manicotti and tuna casserole. In addition, all meals meet federal guidelines for senior nutrition which includes proper servings of protein, vegetable and starch (Meals on Wheels, 2003). See Appendix B for a list of meal choices. Center Layout See Appendix C Transportation An abundance of transportation options are available to individuals residing in the Portland Metropolitan Area who want to use the services we provide. Most care receivers are unable to drive themselves and therefore will rely on transportation provided by their caregiver, public transportation or taxi services. Tri-Met, Portland’s public transportation system offers a wide range of viable options including bus service, Max service (Portland’s light-rail system) and handicap accessible vans. Technology Hardware RoseCity Respite Center will utilize computer technology and other information devices in order to streamline several basic business processes. A desktop computer along with a printer, fax machine/photocopier and telephone will all assist the Program Administrator and Program Director in completing necessary and required business functions. Software A Microsoft Office package that includes Word, Excel and Access will be purchased for the organization’s basic software needs. The Program Director will create a database using Microsoft Access to collect board member information, a list of community partners, donors, employee records and vital clientele data including contact information and health issues. Quickbooks accounting software will drive the Center’s accounting procedures and banking needs and will create reports needed by the accountant.

Social Responsibility

The very nature of RoseCity Respite is to assist citizens in the surrounding community who are in need. Through our mission and the activities performed by the Center, services will be expanded in order to reach caregivers in need of assistance.

Social Objectives Increase Community Awareness Create a Support Network Engage Community Youth

Increase Community Awareness Once a clientele base is established and funds are available, RoseCity Respite Center will develop classes that promote an understanding of issues surrounding Alzheimer’s Disease and other dementias. Classes focused on early stage memory loss will be available for individuals who have been diagnosed, and their caregivers. These classes will establish a foundation from which a healthy understanding of dementia can be formed. Programs will also be created for caregivers to attend that concentrate on topics surrounding later stage memory loss and how to succeed in caring for their loved one. Create a Support Network The Center will establish a network that creates a connection between individual caregivers in the area. This network will create an open forum for communication and will provide support to caregivers who are in need of such assistance twenty-four hours a day. An informational packet on where to find various types of assistance in the area will also be created. Engage Community Youth RoseCity Respite Center will attract students from area high schools and colleges interested in serving their community or fulfilling a service requirement for graduation. This will provide a positive experience for the youth volunteer by allowing him/her to interact in a situation that will increase their knowledge of a real world problem: dementia. The Center also benefits by acquiring assistance that is cost free while at the same time providing valuable life experience to youth in the community.

Development, Milestones and Exit Plan

Long-Term Organization Goals RoseCity Respite Center’s long-term organization goals are based on the idea of becoming one of Southeast Portland’s principle respite care facilities while minimizing the use of government funding. RoseCity Respite Center is dedicated to providing intimate, quality care which will be accomplished by remaining a small organization and serving clientele with only professional, dedicated staff. Milestones The Center hopes to serve twenty-five care receivers in years one and two and increase that number to thirty individuals in year three. A clientele base of this size will adequately meet the demand for one center as well as provide the necessary portion of revenue from client fees to maintain the organization.

In year fifteen, RoseCity Respite Center hopes to become completely self-reliant. This entails the use of only funds generated by the Center and its investing activities. Therefore, government funding and donations by private contributors will be secondary funding sources. If enough funds are generated, the Center anticipates the ability to lower client fees. Risk Analysis Much of the risk assumed by RoseCity Respite Center is based on available funding and the timing of entering the industry. Need for respite services exists, however, current economic factors and the trend to cut social program funding has led to a difficult financial times for not-for-profit organizations. One ballot measure will be voted on in the year 2004 which, if successful, will decrease what little funding currently exists for respite services in the following years. The Center remains optimistic however as do industry professionals that the economic situation will turn around within the next three years (Varble, 2003). Exit Plan In the event the Board of Directors finds that RoseCity Respite Center can no longer continue to provide services and at least break-even, all assets held by the organization will be sold in order to pay any outstanding debt that may exist. Once all liabilities have been paid, the remaining assets will be donated to a not-for-profit organization providing respite services similar to that of RoseCity Respite Center.

Financial Assumptions/Statements

During the first year of operations, RoseCity Respite Center expects to serve an average of twenty-five individuals per day with an attendance fee of $56 dollars per care receiver. In year, two this fee will increase to $57 dollars to partially compensate for an expected decrease in other available funding sources. In subsequent years, the Center plans to either decrease client fees or utilize a sliding fee schedule to accommodate lower income caregivers. Financing/Revenues RoseCity Respite Center shows positive cash flow in each year of operations that is due primarily to client fee revenue and the long-term borrowing of $20,000. The long-term loan amount of $20,000 will be paid back by the end of year ten. In years two and three, revenues are expected to increase by 1.5% and 14.6% respectively. The percentage increase in year three is based on the addition of five clientele per day at a rate of $56 dollars. Revenues received by sources other than client fees are often distributed by the grantor at various time during the year and depends on how the organization allocating the funds chooses to distribute. As is clear in the financial statements, varying amounts of revenue are expected throughout the year based on this trend. The revenue projections in the following statements represent the expectations of possible funding as determined by

Berta Varble (2003) of the Rogue Valley Council of Governments and Stephanie Spaan (2003) of Oregon Lifespan Respite. Operating Expenses Operating expenses are expected to decrease by 1.4% between years one and two and increase by 14% by the end of year three due to increased clientele served and the hourly rate at which employees are paid. Wage expense approximates 67% of total operating expenses. Employee wage increases are projected to be 1.2% and 16.7% between years two and three respectively. Other significant operating expenses include rent and meals. Rent has been determined to cost $2,200 per month. Meals and occasional snacks combined are estimated to cost an average of $7 per care receiver, per day. Staffing The staff size of one Program Administrator, one Program Director and five Program Aides will remain constant throughout the life of the organization. If it is determined that further staff is needed, additional Program Aides will be hired. Employees will receive annual pay increases beginning in the second year of operations. In-Kind Donations A system of documenting in-kind donations that include such items as equipment, supplies and volunteer hours will be established. A dollar value will be placed on these donations, which can then be used to leverage larger donations form private and public sources and/or satisfy matching requirements for grants. The primary methods of tracking in-kind donations include the use of volunteer time cards, documentation of meeting minutes that includes the length of the meetings and who attended, as well as an itemized list of donated items with a dollar amount determined for each item.

RoseCity Respite Center Pro Forma

Statement of Cash Flows for the 12 Month Period Ending

May-05 May-06 May-07 Cash Flows from Operations

Net Income (8,030)$ (1,311)$ 212$ Depreciation 2,211$ 2,416$ 2,713$ Changes in Working Capital

Accounts Receivable1 (2,076)$ (34)$ (630)$ Net Cash Provide by Operating Activities (7,895)$ 1,071$ 2,295$

Cash Flows from Investing Activities Purchases of Property and Equipment

Office Equipment/Other 9,665$ 1,185$ 580$ Total Property and Equipment 9,665$ 1,185$ 580$ Acquisition of Other Assets -$ -$ -$

Net Cash Used in Investing Activities 9,665$ 1,185$ 580$

Cash Flows from Financing Activities Long-term Borrowings 20,000$ -$ -$ Repayment of Long-term Borrowings 1,300$ 1,000$ 1,300$

Net Cash Provided by (Used in) Financing Activities 18,700$ (1,000)$ (1,300)$

Net Increase (Decrease) in Cash 1,140$ (1,114)$ 415$

Plus Beginning Cash -$ 1,140$ 26$

Ending Cash 1,140$ 26$ 441$

RoseCity Respite Center Pro Forma

Income Statement for the 12 Month Period Ending

Sales 215,800$ 100.0% 219,300$ 100.0% 256,420$ 100.0% Gross Profit 215,800$ 100.0% 219,300$ 100.0% 256,420$ 100.0%

Operating Expenses Personnel 144,576$ 67.0% 146,272$ 66.7% 175,550$ 68.5% Depreciation 2,211$ 1.0% 2,416$ 1.1% 2,713$ 1.1%

26,400$ 12.2% 26,400$ 12.0% 26,400$ 10.3% 25,200$ 11.7% 25,200$ 11.5% 30,240$ 11.8%

1,500$ 0.7% 1,500$ 0.7% 1,600$ 0.6% 720$ 0.3% 720$ 0.3% 720$ 0.3% 480$ 0.2% 480$ 0.2% 480$ 0.2%

1,800$ 0.8% 1,800$ 0.8% 2,160$ 0.8% 3,000$ 1.4% 3,000$ 1.4% 3,600$ 1.4%

720$ 0.3% 720$ 0.3% 720$ 0.3% 5,508$ 2.6% 5,508$ 2.5% 5,508$ 2.1%

600$ 0.3% 600$ 0.3% 600$ 0.2% 1,500$ 0.7% 1,500$ 0.7% 1,700$ 0.7%

675$ 0.3% 675$ 0.3% 500$ 0.2% 2,200$ 1.0% 2,200$ 1.0% 2,200$ 0.9% 5,093$ 2.4% -$ 0.0% -$ 0.0%

Total Operating Expenses 222,183$ 102.9% 218,991$ 99.8% 254,691$ 99.4%

Earnings Before Interest and Taxes (6,383)$ -2.9% 309$ 0.2% 1,729$ 0.6%

Interest Expense 1,647$ 0.8% 1,620$ 0.7% 1,517$ 0.6%

Earnings Before Taxes (8,030)$ -3.7% (1,311)$ -0.5% 212$ 0.0%

Income Taxes -$ 0.0% -$ 0.0% -$ 0.0%

Net Income (8,030)$ -3.7% (1,311)$ -0.5% 212$ 0.0%

Return on Sales -3.72% -0.60% 0.08%

Return on Assets -75.26% -15.68% 2.92%

Return on Equity 100.00% 14.03% -2.32%

May-05 May-06 May-07

Contract Labor Accountant

Internet Water/Sewer Electricity Cable

Rent Meals/Snacks Office Supplies Phone Service

Startup Costs

Insurance Advertising and Publications Garbage Contract Labor - Lawyer

May-04 May-05 May-06 May-07

Assets Cash -$ 1,140$ 26$ 441$ Accounts Receivable -$ 2,076$ 2,110$ 2,740$

Total Current Assets -$ 3,216$ 2,136$ 3,181$ Property and Equipment

Office Equipment/Other -$ 9,665$ 10,850$ 11,430$ Total Property & Equipment -$ 9,665$ 10,850$ 11,430$

less acculumlated depreciation -$ (2,211)$ (4,627)$ (7,340)$ Total Fixed Assets -$ 7,454$ 6,223$ 4,090$

Other Assets -$ -$ -$ -$ Total Assets -$ 10,670$ 8,359$ 7,271$

Liabilities and Equity Long-term Debt -$ 18,700$ 17,700$ 16,400$ Other Liabilities -$ -$ -$ -$

Total Liabilities -$ 18,700$ 17,700$ 16,400$

Equity Retained Earnings -$ -$ (8,030)$ (9,341)$ Current Year Earnings -$ (8,030)$ (1,311)$ 212$

Total Equity -$ (8,030)$ (9,341)$ (9,129)$

Total Liabilities and Equity -$ 10,670$ 8,359$ 7,271$

Debt/Equity -232.9% -189.5% -179.6%

Debt/Total Assets 175.3% 211.7% 225.6%

RoseCity Respite Center Pro Forma

Balance Sheet for the Period Ending

RoseCity Respite Center Pro Forma

Breakeven Analysis for the 12 Month Period Ending

May-05 May-06 May-07

Summary of Income Statement By Cost Type

Sales 215,800$ 219,300$ 256,420$ Variable Costs Variable Operating Costs 675$ 675$ 500$

Total Variable Costs 675$ 675$ 500$

Contribution to Fixed Costs 215,125$ 218,625$ 255,920$

Fixed Costs Fixed Operating Costs 221,508$ 218,316$ 254,191$ Fixed Interest, Taxes and Other 1,647$ 1,620$ 1,517$

Total Fixed Costs 223,155$ 219,936$ 255,708$

Net Profit (Loss) (8,030)$ (1,311)$ 212$

Margins Analysis

Variable Cost per $ of Sales 0.00$ 0.00$ 0.00$ Amount available per $ of Sales to Pay Fixed Costs 1.00$ 1.00$ 1.00$

Contribution Margin 99.69% 99.69% 99.81%

Breakeven Analysis

Breakeven Sales based on EBIT 222,196.81$ 218,994.88$ 254,674.88$ Average Sales Price Per Unit Sold 59.94$ 60.92$ 59.36$ Breakeven Sales Volume in Units Based on EBIT 3,707 3,595 4,290

Breakeven Sales Based on All Expenses 223,848.93$ 220,619.92$ 256,194.77$ Average Sales Price Per Unit Sold 59.94$ 60.92$ 59.36$ Breakeven Sales Volume in Units Based on EBIT 3,735 3,621 4,316

May-04 May-05 May-06 May-07

Long-term Solvency Total Debt ratio (TL/TA) 1.75 2.12 2.26 Debt-Equity ratio (TL/TE) -2.33 -1.89 -1.80 Equity Multiplier (TA/TE) -1.33 -0.89 -0.80 Times Interest Earned (EBIT/interest) -3.88 0.19 1.14 Cash Coverage (EBIT+depreciation/Interest) -2.53 1.68 2.93

Asset Untilization Receivable Turnover (sales/AR) 103.95 103.93 93.58 Days' Sales in receivables (365/ Receivable Turnover) 4 4 4 Total Asset Turnover (sales/TA) 20.22 26.24 35.27 Capital Intensity (TA/sales) 0.05 0.04 0.03

Profitability Ratios Profit Margin (NI/sales) -3.72% -0.60% 0.08% ROA (NI/TA) -75.26% -15.68% 2.92% ROE (NI/TE) 100.00% 14.03% -2.32%

Dupont Identity ROE=(Profit Margin)(TA Turnover)(Equity Mulitpler) 100.00% 14.03% -2.32%

Ratios

RoseCity Respite Center Pro Forma

Present Value Analysis

May-04 May-05 May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-13 May-14

Present Value Analysis from Business Perspecitive

Cash from Operations (7,895)$ 1,071$ 2,295$ 3,493$ 5,993$ 4,453$ 6,500$ 4,400$ 4,400$ 7,100$ plus Interest Expense 1,647$ 1,620$ 1,517$ 1,362$ 1,175$ 979$ 765$ 552$ 338$ 231$

Cash from Operations for NPV (6,248)$ 2,691$ 3,812$ 4,855$ 7,168$ 5,432$ 7,265$ 4,952$ 4,738$ 7,331$

Cash used for Investing Activities 9,665$ -$ 1,185$ 580$ 2,395$ 1,485$ 365$ 4,720$ 665$ 515$ 5,805$

Cash from Financing Activities New Borrowings (ST & LT) 20,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Repayments (ST, LT, Other Liab) 1,300$ 1,000$ 1,300$ 2,200$ 3,400$ 2,400$ 2,400$ 2,400$ 2,500$ 1,526$

Cash from Financing Activities 18,700$ (1,000)$ (1,300)$ (2,200)$ (3,400)$ (2,400)$ (2,400)$ (2,400)$ (2,500)$ (1,526)$

Cash to Business for NPV Analysis (9,665)$ 12,452$ 506$ 1,932$ 260$ 2,283$ 2,667$ 145$ 1,887$ 1,723$ -$

Present Value of Cash Flow (9,665)$ 11,637$ 442$ 1,577$ 198$ 1,628$ 1,777$ 90$ 1,098$ 937$ -$

Net Present Value of Above $9,719 Discount Rate Used for NPV Analysis 7.00%

IRR (Internal Rate of Return) 51.53%

RoseCity Respite Center Pro Forma

Statement of Cash Flows Annual for the Month Ending Total

Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 May-05 Cash Flows from Operations

Net Income (4,534)$ (216)$ 86$ (1,138)$ (1,412)$ 2,488$ (1,636)$ (1,410)$ 2,791$ (1,234)$ (908)$ (907)$ (8,030)$ Depreciation -$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 2,211$ Changes in Working Capital

Accounts Receivable1 (2,196)$ 36$ (36)$ 120$ 60$ (468)$ 468$ -$ (504)$ 456$ (12)$ -$ (2,076)$ Net Cash Provide by Operating Activities (6,730)$ 21$ 251$ (817)$ (1,151)$ 2,221$ (967)$ (1,209)$ 2,488$ (577)$ (719)$ (706)$ (7,895)$

Cash Flows from Investing Activities Purchases of Property and Equipment

Office Equipment/Other 9,665$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 9,665$ Total Property and Equipment 9,665$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 9,665$ Acquisition of Other Assets -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Net Cash Used in Investing Activities 9,665$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 9,665$

Cash Flows from Financing Activities Long-term Borrowings 20,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 20,000$ Repayment of Long-term Borrowings -$ 200$ 200$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 1,300$

Net Cash Provided by (Used in) Financing Activities 20,000$ (200)$ (200)$ (100)$ (100)$ (100)$ (100)$ (100)$ (100)$ (100)$ (100)$ (100)$ 18,700$

Net Increase (Decrease) in Cash 3,605$ (179)$ 51$ (917)$ (1,251)$ 2,121$ (1,067)$ (1,309)$ 2,388$ (677)$ (819)$ (806)$ 1,140$

Plus Beginning Cash -$ 3,605$ 3,426$ 3,477$ 2,560$ 1,309$ 3,430$ 2,363$ 1,054$ 3,442$ 2,765$ 1,946$ -$

Ending Cash 3,605$ 3,426$ 3,477$ 2,560$ 1,309$ 3,430$ 2,363$ 1,054$ 3,442$ 2,765$ 1,946$ 1,140$ 1,140$

RoseCity Respite Center Pro Forma

Income Statement Annual for the Month Ending Total

Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 May-05

Sales 18,300$ 18,000$ 18,300$ 17,300$ 16,800$ 20,700$ 16,800$ 16,800$ 21,000$ 17,200$ 17,300$ 17,300$ 215,800$ 100.0% Gross Profit 18,300$ 18,000$ 18,300$ 17,300$ 16,800$ 20,700$ 16,800$ 16,800$ 21,000$ 17,200$ 17,300$ 17,300$ 215,800$ 100.0%

Operating Expenses Personnel 12,048$ 12,048$ 12,048$ 12,048$ 12,048$ 12,048$ 12,048$ 12,048$ 12,048$ 12,048$ 12,048$ 12,048$ 144,576$ 67.0% Depreciation -$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 201$ 2,211$ 1.0%

2,200$ 2,200$ 2,200$ 2,200$ 2,200$ 2,200$ 2,200$ 2,200$ 2,200$ 2,200$ 2,200$ 2,200$ 26,400$ 12.2% 2,100$ 2,100$ 2,100$ 2,100$ 2,100$ 2,100$ 2,100$ 2,100$ 2,100$ 2,100$ 2,100$ 2,100$ 25,200$ 11.7%

125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 1,500$ 0.7% 60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 720$ 0.3% 40$ 40$ 40$ 40$ 40$ 40$ 40$ 40$ 40$ 40$ 40$ 40$ 480$ 0.2%

150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 1,800$ 0.8% 250$ 250$ 250$ 250$ 250$ 250$ 250$ 250$ 250$ 250$ 250$ 250$ 3,000$ 1.4%

60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 60$ 720$ 0.3% 459$ 459$ 459$ 459$ 459$ 459$ 459$ 459$ 459$ 459$ 459$ 459$ 5,508$ 2.6%

50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 600$ 0.3% 125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 125$ 1,500$ 0.7%

-$ -$ -$ 225$ -$ -$ 225$ -$ -$ 225$ -$ -$ 675$ 0.3% -$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 2,200$ 1.0%

5,093$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5,093$ 2.4% Total Operating Expenses 22,760$ 18,068$ 18,068$ 18,293$ 18,068$ 18,068$ 18,293$ 18,068$ 18,068$ 18,293$ 18,068$ 18,068$ 222,183$ 102.9%

Earnings Before Interest and Taxes (4,460)$ (68)$ 232$ (993)$ (1,268)$ 2,632$ (1,493)$ (1,268)$ 2,932$ (1,093)$ (768)$ (768)$ (6,383)$ -2.9%

Interest Expense 74$ 148$ 146$ 145$ 144$ 144$ 143$ 142$ 141$ 141$ 140$ 139$ 1,647$ 0.8%

Earnings Before Taxes (4,534)$ (216)$ 86$ (1,138)$ (1,412)$ 2,488$ (1,636)$ (1,410)$ 2,791$ (1,234)$ (908)$ (907)$ (8,030)$ -3.7%

Net Income (4,534)$ (216)$ 86$ (1,138)$ (1,412)$ 2,488$ (1,636)$ (1,410)$ 2,791$ (1,234)$ (908)$ (907)$ (8,030)$ -3.7%

Contract Labor Accountant Startup Costs

Insurance Advertising and Publications Garbage Contract Labor - Lawyer

Internet Water/Sewer Electricity Cable

Rent Meals/Snacks Office Supplies Phone Service

RoseCity Respite Center Pro Forma

Beginning Balance Sheet Balance for the Month Ending

May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05

Assets Cash -$ 3,605$ 3,426$ 3,477$ 2,560$ 1,309$ 3,430$ 2,363$ 1,054$ 3,442$ 2,765$ 1,946$ 1,140$ Accounts Receivable -$ 2,196$ 2,160$ 2,196$ 2,076$ 2,016$ 2,484$ 2,016$ 2,016$ 2,520$ 2,064$ 2,076$ 2,076$

Total Current Assets -$ 5,801$ 5,586$ 5,673$ 4,636$ 3,325$ 5,914$ 4,379$ 3,070$ 5,962$ 4,829$ 4,022$ 3,216$ Property and Equipment

Office Equipment/Other -$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ Total Property & Equipment -$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$ 9,665$

less acculumlated depreciation -$ -$ (201)$ (402)$ (603)$ (804)$ (1,005)$ (1,206)$ (1,407)$ (1,608)$ (1,809)$ (2,010)$ (2,211)$ Total Fixed Assets -$ 9,665$ 9,464$ 9,263$ 9,062$ 8,861$ 8,660$ 8,459$ 8,258$ 8,057$ 7,856$ 7,655$ 7,454$ Total Assets -$ 15,466$ 15,050$ 14,936$ 13,698$ 12,186$ 14,574$ 12,838$ 11,328$ 14,019$ 12,685$ 11,677$ 10,670$

Liabilities and Equity Long-term Debt -$ 20,000$ 19,800$ 19,600$ 19,500$ 19,400$ 19,300$ 19,200$ 19,100$ 19,000$ 18,900$ 18,800$ 18,700$

Total Liabilities -$ 20,000$ 19,800$ 19,600$ 19,500$ 19,400$ 19,300$ 19,200$ 19,100$ 19,000$ 18,900$ 18,800$ 18,700$

Equity Current Year Earnings -$ (4,534)$ (4,750)$ (4,664)$ (5,802)$ (7,214)$ (4,726)$ (6,362)$ (7,772)$ (4,981)$ (6,215)$ (7,123)$ (8,030)$

Total Equity -$ (4,534)$ (4,750)$ (4,664)$ (5,802)$ (7,214)$ (4,726)$ (6,362)$ (7,772)$ (4,981)$ (6,215)$ (7,123)$ (8,030)$

Total Liabilities and Equity -$ 15,466$ 15,050$ 14,936$ 13,698$ 12,186$ 14,574$ 12,838$ 11,328$ 14,019$ 12,685$ 11,677$ 10,670$

Appendix A Competitors

Short-Term Facility Competitors

Legacy St. Aiden’s Place 17309 NE Glisan Portland, OR 97230 503-413-7706 Legacy – Trinity Place 147 NW 19th Portland, OR 97210 503-413-7653 Center Peace – Mittleman Jewish Community Center 6651 SW Capital Highway Portland, OR 97419 503-244-0111 Milwaukie Center 5440 SE Kellogg Creek Drive Milwaukie, OR 97222 503-653-8100 Elderplace 4540 NE Glisan Portland, OR 97213 503-215-2220

In-home Respite Care Providers

Legacy Caregiver’s In-Home Respite 1015 NW 22nd Avenue, N300 Portland, OR 97210 503-413-7706 Interfaith Caregivers of East Multnomah County 14500 SE Powell Boulevard Portland, OR 97236 503-761-6333

Appendix B Meals

1. Spaghetti and Meatballs

Served with corn and a blend of peas and carrots.

2. Beef Pot Roast and Mashed Potatoes

with Gravy Served with a side of green beans and corn.

3. Pork Riblet with BBQ Sauce and

Roasted Sweet Potatoes Served with sugar snap peas and a blend of broccoli and cauliflower.

4. Chicken Breast Pieces with Marinara Sauce

Served over pasta and topped with mozzarella cheese. Also comes with a side of peas and carrots.

5. Mesquite Chicken

Chicken breast with barbecue sauce over a black bean rice blend, with sides of carrots and green beans

6. Baked Fish and Rice Pilaf Served with carrots and red peppers, served with brussels sprouts and a vegetable blend

Appendix C Center Layout

Program Director’s

Office

Program Administrator’s

Office

Activity Room

Kitchen

Storage Restroom

Appendix D Daily Activities Schedule

8:00 to 9:15 Arrival Time 9:30 to 11:00 Snack/Coffee an Conversation

11:00 to 11:15 Individual Activities 11:15 to 11:30 Preparation for Lunch 11:30 to 12:00 Lunch 12:00 to 12:30 Quiet Time Activities 12:30 to 1:30 Active Game, Recreation

1:30 to 2:30 Rest, Free Time, Snack 2:30 to 3:00 Departure Time

Bibliography

AARP. (2001). Caregiver Identification Study. AARP figure out whole name. Available: http://www.research.aarp.org [2003, October 16]. Employment Development Department. (1996). Adult Day Care Occupations. California Employment Department. Available: http://www.calmis.cahwnet.gov/ file/occguide/ADULTDAY.HTM [2003, October 6]. Family Caregiver Alliance, National Center on Caregiving (2001). Factsheet: Selected Caregiver Statistics. [Online]. Available: http://www.caregiver.org/caregiver/jsp/ print_friendly.jsp?nodeid=439 [2003, October 14]. Family Caregiver Alliance, National Center on Caregiving (2003). Who Cares? Families Caring for Persons with Alzheimer’s Disease. Alzheimer’s Association and National Alliance for Caregiving [Online]. Availiable: http://www.caregiver.org/caregiver_ report.pdf Hallett, E. (2003). [Interview with Elizabeth Hallett, Office Administrator of Trinity Respite Center]. Klein, K. (2001). Quick Ways to Raise Money During the Holiday Season. Grassroots Fundraising Journal, pp 4-7. Meals on Wheels. (2003). Golden Cuisine. [Online]. Available: http://www.goldencuisinestore.com/products.jsp Oregon Administrative Rules. (2000). Department of Human Resources, Senior and Disabled Services Division: Registration and Standards for Adult Day Care Programs. [Online]. Available: http://arcweb.sos.state.or.us/rul es/OARS_400/OAR_ 411/411_066.html [2003, October 6] Sullivan, A. (2001, December). The Heart is Willing, But the Economy Isn’t. Investing in Philanthropy, pp 23-24. The Robert Wood Johnson Foundation. (2003). The Role of Adult Day Services. [Online]. Available: http://rwjf.org/news/special/adultdayServicesummary.jhtml? Liquid&pf [2003, October 19]. United States Census Bureau. (2000). American Community Survey Profile [Online]. Available: http://www.census.gov/acs/www/Products/Profiles/Single/2002/ACS/ OR.htm [2003, October 14]. Varble, B. (2003). [Interview with Berta Varble, Senior and Disability Services Contracts Manager of the Rogue Valley Council of Governments].

http://www.research.aarp.org/

http://www.calmis.cah/

http://www.caregiver.org/caregiver/jsp/print_friendly.jsp?nodeid=439

http://www.caregiver.org/caregiver_

http://www.goldencuisinestore.com/products.jsp

http://arcweb.sos.state.or.us/rules/OARS_400/OAR_411/411_066.html %5b2003

http://rwjf.org/news/special/adultdayServicesummary.jhtml?

http://www.census.gov/acs/www/Products/Profiles/Single/2002/ACS/OR.htm

Bibliography

Wake Forest University School of Medicine. (2002). National Study of Adult Day Services. [Online]. Available: http://www.wfu.edu [2003, October 12]. Additional Sources Consulted: Montgomery, R., & Prothero, J (Eds.). (1986). Developing Respite Services for the Elderly. United States: University of Washington Press. Oregon Health Division. (1999). Oregon Respite Care Resource Manual. Spaan, S. (2003). [Interview with Stephanie Spaan of Multnomah County Lifespan Respite Program]. Swisher, P. (2003). [Interview with Pam Swisher of Jackson County Lifespan Respite Program].

http://www.wfu.edu/

Dungan

Cross-Out