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Our Children Are Watching

Our Children Are Watching

As this painful week comes to an end, I am left thinking about the children. How are they internalizing what they see on TV? How do we answer their questions?

This week of pain comes at a time already fraught with tension, compounding the destructive force of COVID-19 and the resulting financial crisis that is hitting our most vulnerable and marginalized communities the hardest.

Our collective children are growing up and learning about their world, now with disturbing events unfolding in every direction. I wonder how we explain these times to our children. What will they take away from this point in time? I listened to George Floyd’s second grade teacher remember him as a pleasure to have in class, a quiet boy who liked to sing and wanted to be a Supreme Court justice. I think of all the children at that age, lives innately full of hope, positivity and wonder.

I have also listened to our staff describe painful and anguished conversations they are forced to have with their children. Some of you are having “the talk”, not about the birds and the bees, but rather preparing your children for racism. I am listening to parents soberly explain how the reality of racism affects their own hopes and dreams for their children and what will be required of them as they grow up.

I can’t imagine looking into the eyes of any child, preparing them for hatred. Yet a large portion of our society must explain to their children the limitations they will face.

Wouldn’t it be wonderful if we could all be proud of the world into which we have brought our children? It should be a place where they could all feel safe to pursue limitless possibilities, one where there is no need for “talk” to warn that their road will be different, harder and even dangerous.

We must stand in solidarity with those demanding an end to systemic racism and violence. We must do better. We owe our children a better world.

We cannot allow this heartbreaking reality to continue.

Our children are watching.

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Workers with Disabilities Essential in the Pandemic

At a time when gratitude is owed to so many for keeping our communities safe and healthy, we need to count among that group individuals with disabilities who are serving as essential workers of Governor Cuomo’s New York on PAUSE emergency plan.

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Reflections on Memorial Day

Reflections on Memorial Day

Good Morning. On this Memorial Day I want to share my blog with Retired US Army Colonel David W. Sutherland.

This weekend marks Memorial Day, a sacred day of recognition in the United States.

I, like the rest of the team at Dixon Center for Military and Veterans Services, will spend the weekend remembering, honoring, and mourning the United States military members who died while serving in the Armed Forces – some of whom I served with over the course of my 29-year career.

One of these people was the husband of Latrese Dixon. In her book, From Tragedy to Triumph: The Life of a Widow, Latrese reflects on her life leading up to, and journey following, her husband’s death in 2007 during combat operations in Iraq. While her book is a stirring read for Memorial Day, there are many passages that offer lessons and insights relevant throughout the year.

Today I want to share a few pieces of quiet wisdom from this book with you – and what passes through my mind as I read them.

“He was a soldier and he answered the call of duty.”
The members of our Armed Forces put their lives on the line for their country, knowing that it is a dangerous business that could separate them permanently from their families. Yet a service member follows through and perseveres, even amidst difficult times and challenges. It’s called “character,” and it’s explained best not by definition, but by actions such as selflessly putting country before life.

“He died doing what he loved most – protecting his country, protecting his family. Both were inextricably linked.”
For me, the key words here are “inextricably linked.” Those who serve do so both for, and on behalf of, their families, neighbors, and communities. Equally important are the “comrades” to their left and right in times of crisis. Serving our country is a global duty, but it starts with families. You will find courage, love, duty, and sacrifice a commonality among everyone who has served.

“Losing a loved one is hard: healing is harder, but know that their memories continue to live on.”
The worst thing we can do is to forget. We can all use the opportunity created by Memorial Day to remember all those who died while serving, be it in combat, during training exercises, or through accidents and non-combat related deaths. One of the most important deaths for me to remember is death by suicide while on active duty. Ultimately, though, this painful reflection is necessary as it truly is the purpose of Memorial Day.

“The most difficult and hardest thing to do was figure out how to tell the children that their father would not be coming home.”
The narratives of those who have fallen live on through their families. These families are given the honorific “Gold Star” to designate that they’ve had a loved one lose his/her life in service to the nation. If you know a Gold Star family, reach out to check on them this weekend and provide encouragement. If you meet a Gold Star family member in the future, ask them to share their story, then take the time to listen.

Colonel Sutherland, Latrese Dixon, and some of her children during a wreath ceremony at Arlington National Cemetery honoring SSG Donnie Dixon.

Although the COVID-19 pandemic has altered our ability to honor the fallen with parades or memorial services, it does provide an opportunity for us to create our own personal remembrances. Consider the following activities:

•  Plant a remembrance tree or flowers with your family.
•  Research the achievements of one of our fallen from previous wars and ongoing operations in Iraq and Afghanistan.
•  Livestream virtual events from the Vietnam Veterans Memorial Fund and at Arlington National Cemetery.

This Memorial Day weekend, I hope that you take a moment to personally reflect on the achievements and courage of our U.S. service members who died while serving in the Armed Forces.

We at Dixon Center will always remember, and they will never be forgotten.

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The Balcony

The Balcony

This week I am going to veer from my usual blog topics, to talk about balconies … and how they have become a source of inspiration and hope for people around the world.

In Italy you can hear music coming from balconies from town to town—”a nationwide concert to lift our spirits” shared one Italian. People were invited to join in, playing musical instruments –or if that is all they had—using pots and pans to join in on the melody. This is also true in France, where a French opera singer sang the French National Anthem from his balcony amid cheers and tears. There was an amazing evening where applause and cheers were heard when the French organized a countrywide balcony tribute to their health care workers. In Spain you can hear the notes of “My Heart Will Go On” … played on a piano on his balcony by a gifted Spanish musician and the beauty of the huge crowd who joined in.

And in New York, if you listen closely, you can hear the cheers of New Yorkers, from balcony to stoop, honoring health care workers and first responders, and the music from our Broadway musicians who will not be silenced even by COVID-19. And there are photos all over social media showing New Yorkers having balcony picnics and making elegant champagne toasts with their neighbors.

The balcony is a phenomenon within a phenomenon.

I found myself thinking about the many ways balconies have been used over time to communicate messages of good like those of the Pope for individuals of the Catholic faith on Easter morning, or for those romantics who can recite verbatim the balcony scene in Romeo and Juliet. Balconies certainly have been used to spread messages of evil, divisiveness and genocide, such as in the era of Mussolini and Hitler.

What is striking about the balcony scenes of today is the sense of optimism that is generated from these simple moments of sharing. The message that we really are in this together—one global community. These moments remind us of the courage and resilience of the human spirit. They remind us that we always do seem to get back up—one way or another. They remind us how deeply we are connected and how important this connection is to our health and well-being.

There have been moments of extraordinary sorrow since the pandemic struck. And there have been moments of extraordinary kindness. Both will remain with us for a very long time. Both need to be acknowledged.

I have been deeply honored by the many people who read my blogs and who write to me sharing their perspectives on the current reality.

Tonight I may cheer about the importance of this connection from my window.

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FY2020 First Half Financial and Operating Results

FY2020 First Half Financial and Operating Results

The Fedcap Group Reports Fiscal Year 2020 First Half Operating and Financial Results

  • Broadened services in key areas of focus
  • Expanded international operations
  • Effectively responded to COVID-19 health crisis
  • Strengthened liquidity and preparing for post COVID-19 challenges and opportunities

New York, May 14 – The Fedcap Group, the parent company for a growing network of top tier nonprofit agencies, today reported its operating and financial results for the first half of fiscal year 2020 ending March 31, 2020. Committed to providing services that positively impact the lives of people with barriers to social and economic well-being, The Fedcap Group operates in four main practice areas: Workforce Development, Education, Occupational Health and Economic Development.

Management Comment

“For the most part, The Fedcap Group’s first half fiscal year 2020 results represented a continuation of the positive momentum we have experienced over the last several years,” said Christine McMahon, President and Chief Executive Officer. “We were continuing our growth trajectory, achieving favorable outcomes for the populations we serve, expanding our work internationally with the launch of a new contract in Canada, and looking forward to the expansion of our Career Design School offerings. Throughout the period, we continued to refine our work in our five key areas of focus: Children ages 0-8, youth transitioning from foster care, individuals with intellectual/developmental disabilities, the previously incarcerated and those on public assistance. At the same time, we made investments to enhance our technology infrastructure through upgrades to our financial, HR, fundraising and business development platforms.

“With the onset of COVID-19, we turned our attention to rapidly and effectively responding to the crisis. We activated our Business Continuity Plan—focused on People, Workplace/Operations, Finances, Information Technology and Communications. We prioritized the health and safety of our employees, clients and communities by implementing new protocols, including strict sanitary and physical distancing procedures that adhered to or exceeded CDC guidelines. With respect to finance, we stress tested our liquidity against a wide range of likely scenarios, evaluated relevant Disaster Assistance and additional cash conversion opportunities, and succeeded in bringing in federal and philanthropic dollars to cover a portion of our increased operating costs. We ensured that our technology platform was capable of managing the shift to online learning and telehealth, and finally, provided frequent update to all of our stakeholders on the evolving situation,” said Ms. McMahon.

2020 Financial and Operating Metrics

The first half of fiscal 2020 revenues were $129.4 million. Lower year-on-year comparisons primarily reflect the downsizing of our home health business, which contributed revenues of approximately $10 million in last year’s first half, a COVID-19 revenue impact of approximately $3.5 million and the wind-down of a large project that was completed in 2019. In the first half of fiscal 2019, revenues were $145.3 million.

Over the last several years, The Fedcap Group has significantly diversified its revenue sources, bringing a broader array of services to at-risk populations.

  • Economic Development is comprised of business services operations that directly employ the populations we serve. In the first half of fiscal year 2020 we employed over 1,500 people in these businesses, the majority of whom have disabilities or other barriers. Within this activity, the largest unit is Total Facilities Management, which provides services at many iconic sites in the U.S. and at government and commercial office buildings. During this pandemic client demand for Total Facilities Management has increased significantly, and we have worked diligently to meet the need.
  • Workforce Development continues to represent the area in which The Fedcap Group serves the largest number of individuals through a broad range of services, including the Single Stop platform. In the first half of 2020 we provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services. We placed 5763 people in jobs and provided job retention services. We have continued to provide most of these services via video conferencing and technology platforms during the current healthcare crisis.
  • Education and Occupational Healthrepresent growing bodies of work in the areas of early childhood services provided through Easterseals and assisting individuals with intellectual and developmental disabilities (I/DD) enter the workforce. We provided services to 4421 children ages 0-8, designing and delivering an array of evidence-based practices that promote long term economic and social well-being. The Fedcap Group is also at the forefront of helping individuals with I/DD learn new trades and enter the workforce at competitive wages—ending segregated employment in sheltered workshops. Transitioning this work to a telehealth model during COVID-19 has involved engagement of families and a learning curve for staff.

First half fiscal 2020 operating expenses were $130.8 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating loss of $1.4 million for this year’ first half, largely reflecting the impact of uncertainty about continued funding and allowable remote services at the start of the COVID crisis. We expect results in subsequent quarters of fiscal 2020 to stabilize and show some benefit from COVID-related opportunities and assistance.

During FY 2020 The Fedcap Group began the process of increasing its working capital line of credit to coincide with the many growth opportunities that exist.

At March 31, 2020 cash and marketable securities were $15.9 million compared to $22.2 million at the same time last year. Cash balance trends continue to reflect slow paying government funders, and The Fedcap Group is working diligently with these entities to ensure more timely payments for the services it provides.

Summary and Outlook

First half fiscal 2020 presented unprecedented operating conditions, and The Fedcap Group rose to meet these challenges.

Some of the organization’s activities during this period include:

  • Front Line Work: COVID-19 has exposed some of the most vulnerable in society. In response The Fedcap Group’s front-line staff stepped up by:
  • Deep cleaning over 18,000 square feet of facilities.
  • Providing 27,214 pounds of food toiletries and other essentials 833 families through our child development centers and special education schools.
  • Partnering with organizations to cook 120,000 meals in our commercial kitchen and deliver to the homeless and individuals in shelters.
  • Provided childcare to health care providers and first responders.
  • Pivot Service Delivery Model as a Result of COVID-19: As regulatory bodies and government guidelines reduced or, in most locations across our footprint eliminated our ability to provide in person services, we rapidly pivoted to the provision of online learning and telehealth services.
  • 1400 staff were trained on remote work and the provision of telehealth services.
  • Provided 6556 telehealth meetings over a 6-week period
  • Expanded online educational platforms allowed us to continue to provide work readiness training and courses resulting in certification in high growth sectors.

“I could not be prouder of The Fedcap Group leadership and staff who have worked tirelessly to continue to bring our essential services to the at-risk populations we serve within a very difficult operating environment. This demonstrates the strong culture that unites us and supports our confidence in The Fedcap Group’s ability to continue to effectively navigate the COVID-19 health crisis and to emerge from it as an even stronger organization.

“We are optimistic as we prepare for the “new normal” and are planning our approach to the path forward. While we continue to expect challenges ahead, we are operating with rigorous financial and risk management controls and procedures to manage our cost structure and conserve cash.

“We believe that the post-COVID-19 environment will provide opportunities for The Fedcap Group and similar service providers, who are well-capitalized and have the scale and IT infrastructure to offer robust solutions to funders. Specifically, we believe that demand for our on-premises Facilities Management Services will increase as will the need for our workforce training and development work to help get individuals back to work. Additionally, we see further opportunities for The Fedcap Group’s services and expertise in the education and public health arenas to address the increased needs of the populations we serve.

“The Fedcap Group has the unique ability to leverage complementary capabilities and qualifications across our organization to achieve positive outcomes for clients. Spanning 22 states and three countries, we are approaching our funders with innovative ideas about how to optimize service delivery within the ever-changing environment. Our leadership in providing relevant services, our strong financial position and the dedication of our staff give us confidence in The Fedcap Group’s ability to remain a sustainable organization with sufficient infrastructure and resources to effectively serve clients,” said Ms. McMahon.

About The Fedcap Group

For 85 years, The Fedcap Group has developed scalable, innovative and potentially disruptive solutions to some of society’s most pressing needs. Serving over 265,000 people each year, The Fedcap Group provides educational services to every age group, vocational training in high-growth industries, behavioral health services, work readiness skill building and jobs—all targeted to helping people achieve long-term self-sufficiency.

The Fedcap Group also invests its time and resources in broader system change—working in partnership with federal, state and local government to improve the way services are designed, funded and delivered.

Conference Call Details

Date:05/14/20 at 11:00am EDT
Phone: 
US: 1-844-792-3735

UK: 08002799489

Canada: 1-855-669-9657

Link to Webcast: www.fedcapgroup.org/results

Financials

Fedcap Rehabilitation Services, Inc. and Subsidiaries Statement of Financial Position

Consolidated Statement of Activities and Changes in Net Assets

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