The entire board of directors of the Kawartha Haliburton Children’s Aid Society (KHCAS) has resigned after learning the Ontario Ministry of Children, Community, and Social Services would be installing a supervisor for up to a year to oversee and manage the child welfare agency in place of the board and executive director.
“Board members can no longer meet their fiduciary duty when this happens,” the board announced in a media release on Wednesday (October 23). The announcement came two weeks to the day after the Ontario government launched a review of the province’s 37 non-Indigenous children’s aid societies.
At a technical briefing on October 9, ministry officials said the review would look at issues such as the quality of protection the children’s aid societies provide, as well as their finances.
The prior week, Premier Doug Ford had suggested the societies are being financially mismanaged, claiming there were “nightmare stories about the abuse of taxpayers’ money.”
“I’ve heard stories of some of these agencies, they’re working in Taj Mahals, they’re paying rent — $100,000 for rent, that the managers are giving themselves a bonus,” Ford said in response to a question about reporting in the Toronto Star about the lack of placement options for children with complex needs.
“All those managers giving yourself a bonus, not worrying about the kids, I’m coming for you. We’re doing a complete audit, and if we see funds not being spent properly on the kids, guess what? You’re looking for another job.”
The Ontario Public Service Employees Union (OPSEU) and Canadian Union of Public Employees (CUPE) Ontario, representing workers at children’s aid societies, said in a joint statement that the review “is another smokescreen to distract from the government’s abject failure to support children and families while opening the door for more privatization in the sector.”
As with other societies across the province, KHCAS — which has its head office in Peterborough and branches in Lindsay and Haliburton — has been running a deficit.
In July, the society announced plans to reduce its $22 million budget by $7.6 million over three years, including by laying off 24 full-time equivalent positions by March 2025. Affecting 20 unionized staff and five non-union and management staff, the lay-offs would amount to a 20 per cent reduction in the society’s workforce. The organization also announced plans to close its Haliburton branch.
Along with budget deficits, a shortage of available beds in group homes and foster homes has meant children’s aid societies across the province, including KHCAS, have had to resort to placing some children and youth — particularly those with special needs or challenging behaviours — in unlicensed settings such as hotels, motels, trailers, and even their own offices. On September 5, Ontario Ombudsman Paul Dubé today announced an investigation into the practice.
“We are aware of numerous incidents across the province of children being placed in these unlicensed settings, many of which have raised some serious concerns about their safety, privacy and comfort,” Dubé said.
In response to the ombudsman’s announcement, the Ontario Association of Children’s Aid Societies said child welfare agencies across the province are facing significant challenges in securing out-of-home care and live-in treatment options for children and youth, with a critical shortage in placement options due in part to the cost-of-living and housing crisis in Ontario.
In its media release, the KHCAS board said its members have resigned “with profound sadness” following the province’s decision to install a supervisor.
“The board worked diligently to avert this from happening,” the release states. “However, the difficulties we experienced are echoed across the sector and were not repairable within the structures and guidelines we must work within.”
“Although there will be difficult days ahead, we know that the staff and leadership team at Kawartha Haliburton Children’s Aid Society will continue to provide excellent care and service to the children, youth, and families in our communities.”
Following the board’s announcement, Minister of Children, Community and Social Services Michael Parsa issued a statement confirming he has appointed Rosaleen Cutler as supervisor for the KHCA “to oversee and operate the society and help ensure the safety and well-being of children and youth receiving services.”
“Although the government does not direct children’s aid societies on placement decisions, we require them to ensure placements are safe, appropriate and meet the child’s needs,” the statement reads. “That’s not an option: it’s the law.”
Parsa said the ministry has provided $4.6 million over and above the KHCAS’ funding allocation since 2020-21, “while working with the society to address the findings of various ministry-led reviews.”
“These reviews have identified a number of significant risks related to the overall operations and financial management of the society,” Parsa said. “In addition, the ministry does not have confidence in the society’s ability to make the necessary strategic decisions to address its growing deficit and operational issues, which may negatively impact the safety and quality of protection services that vulnerable children and youth depend on.”
According to Parsa, Culter will assume responsibility for overseeing the operations and managing the society in place of the KHCAS board and executive director for as long as a year.
“During her term, Ms. Cutler will address the society’s growing financial and operational issues and reinstate good governance and fiscal sustainability, while ensuring the continuity of services to children, youth, and families,” Parsa said.
Cutler was previously executive director of the Children’s Aid Society of Northumberland, before it merged with the Hastings Children’s Aid Society in 2012 to become the Highland Shores Children’s Aid Society. Later, she also worked as project manager and child welfare lead with the Ontario Association of Children’s Aid Societies and was interim CEO of the York Region Children’s Aid Society before retiring in 2021.
