Financial Reporting & Budgets

Overview

Financial reporting and budget management are core operational functions at TheKey, enabling leadership to track revenue, gross profit, caregiver margins, and billable hours against forecasts and budgets across all regional offices. These processes drive accountability at the office and GM level, support incentive compensation decisions, and inform strategic planning including market expansions and regulatory compliance. The cadence spans daily on-call reports through monthly P&L reviews and formal MOR (Month of Review) sessions, using platforms including ClearCare, NetSuite, and Planful.

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Key People

• Brad Walker — Sr. Business Analyst; leads the Monthly MOR Financial Review Process for FY2026 [Monthly MOR Financial Review Process for FY2026 - February 2026 Package — 2026-03-19]
• Mary Katherine Cope — coordinates MOR packages and financial accountability communications [Monthly MOR Financial Review Process for FY2026 - January 2026 Package — 2026-03-09]
• Natalie Graham — participates in MOR Canada/National On-Call sessions; tracks YTD budget alignment [Re: Updated invitation: Monthly MOR — 2026-03-18]
• Diego Castaneda — issued 2024 budget release and mid-year forecast revision; introduced Report 701 [2024 Budget is ready — 2024-03-15; July is Close — 2024-08-13]
• Tyrone Butts — Senior Financial Analyst; manages employee allocations and FY2025 budget corrections [Re: Employee Allocations — 2024-10-23]
• Hua Wu — manages Canadian subsidiary month-end close reporting [Reminder - Canadian Subsidiaries Month End Close Reporting — 2023-01-26]
• Adriana Mendez — identified revenue discrepancy between ClearCare Gross Profit Summary and NetSuite/Planful [RE: Revenue Discrepency — 2026-02-09]
• Germaine Daniels — Director of Payroll; coordinates payroll expense and gross profit column alignment [Re: Spreadsheet shared — 2025-08-08]
• Sharon Speirs — Vancouver GM; regular contributor to Wins/Losses and monthly results reporting
• Diane Mockenhaupt — Chicago GM; regular monthly results reporting
• Chuck Terlesky — Canadian regional leader; coordinates P&L pulls and AEBITDA reporting
• Timothy Thomas — senior leadership; recipient of regional financial results; flagged ClearCare gross profit report limitation as early as 2018 [Gross Profit Report — 2018-04-25]
• Lyndsey Organ — initiates monthly gross profit report requests from office leaders
• Timon Page, Joey Taylor, Dennis Fancy, Sharon Speirs — office leaders pulling February 2026 P&Ls from ClearCare

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Processes & Policies

Monthly Reporting Cycle

• Office leaders run a gross profit report in ClearCare each month end, submitting: Revenue, Gross Profit %, and Billable Hours to regional leadership [Re: February 2026 P&Ls — 2026-03-12]
• Canadian subsidiaries follow a numbered month-end close checklist including accrual-basis financials, payroll GL reconciliations (quarterly), and balance sheet reconciliations [Reminder - Canadian Subsidiaries Month End Close Reporting — 2023-01-26]
• On-call EOD reports track Budget ($), Budget (hrs), Revenue (start/end of period), and Hours (start/end) by office daily [OnCall_EOD_Reports_January_2025.txt; March_2025.txt]

MOR (Month of Review) Sessions

• Monthly cadence; FY2026 process formalised by Brad Walker and Mary Katherine Cope
• Objectives: provide leaders with financial performance visibility, reinforce budget accountability, discuss YTD actuals vs. budget, identify risks and mitigation plans [Monthly MOR Financial Review Process — 2026-03-09; Re: Updated invitation: Monthly MOR — 2026-03-18]
• Accounting questions routed to the Accounting team; budget questions routed to FP&A [Monthly MOR Financial Review Process — 2026-03-19]

Wins/Losses Reporting

• Informal but consistent monthly format used by regional GMs (Vancouver, Chicago, Calgary, Winnipeg, Cincinnati, others)
• Key metrics reported: Revenue vs. budget/forecast, Caregiver margin %, Billable hours, Client count, notable operational wins and losses

Expense Reporting

• Travel and entertainment expenses submitted via Coupa twice monthly (1st and 15th)
• Expense budgets tiered by revenue: $500K+ = $3,000/mo; $200–499K = $1,500/mo; $100–199K = $750/mo; under $100K = $500/mo [OLD_HCL_Playbook.txt]
• Managers must verify expenses are coded correctly, within budget, and properly documented [Travel_Entertainment_Policy_Final.txt]

Key Metrics Tracked

• Revenue vs. forecast and vs. budget (%)
• Billable hours vs. forecast and budget
• Gross profit % and caregiver margin % (formula: Revenue – Cost of Care)
• AEBITDA (reported by Calgary: 21.3% in September 2024)
• Client count and Tier 1 client acquisition

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Timeline & Key Events

• 2018-04 — Timothy Thomas flags that ClearCare's gross profit summary report excludes caregiver expenses, raising accuracy concerns that persist into later years [Gross Profit Report — 2018-04-25]
• 2022-04 — Prairie Seniors at Home GM variance review conducted for February 2022 P&L [Prairie Seniors at Home - GM Variance Review — 2022-04-05]
• 2023-01 / 2023-03 — Hua Wu issues reminders for Canadian subsidiary month-end close reporting with numbered checklist
• 2023-06 — HCA Toronto Profit and Loss by Month spreadsheet circulated [daniel.barakat@thekey.com — 2023-06-14]
• 2024-03 — 2024 budget released by Diego Castaneda; new budget report added for access [2024 Budget is ready — 2024-03-15]
• 2024-08 — Mid-year forecast revision issued; offices trending below budget prompted new H2 2024 growth targets; Report 701 (YTD monthly) introduced; MOR variance analysis shifted to forecast basis [July is Close — 2024-08-13]
• 2024-10 — September 2024 results show total revenue 14.3% over forecast and 1.7% over budget YTD; billed hours 11.6% over forecast [Re: September Results — 2024-10-30]
• 2025-01 — CDHC Match Business Case (Calgary) documents CDHC clients representing 19% of total revenue [CDHC Match Business Case Calgary — 2025-01-10]
• 2026-01 / 2026-03 — FY2026 MOR Financial Review Process formalised and rolled out by Brad Walker and Mary Katherine Cope
• 2026-02 — Revenue discrepancy identified between ClearCare Gross Profit Summary and NetSuite/Planful attributed to Cheque Emploi credits [RE: Revenue Discrepency — 2026-02-09]

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Key Decisions

• Mid-2024 forecast revision: When offices trended below budget, Diego Castaneda replaced the 2024 budget as the MOR variance benchmark with a revised forecast establishing H2 growth targets [July is Close — 2024-08-13]
• ClearCare reporting limitation acknowledged but unresolved: Since 2018, leadership has known the ClearCare gross profit summary excludes caregiver expenses; offices continue using it for monthly submissions pending a fix
• NetSuite/Planful as authoritative financial system: Discrepancies between ClearCare and NetSuite/Planful are resolved in favor of NetSuite/Planful [RE: Revenue Discrepency — 2026-02-09]
• Revenue forecast for insurance/compliance purposes: For Montreal insurance renewal, the budget straight-lined over 12 months was used as the revenue forecast [Re: FW: Home Care Assistance (Montreal) — 2024-08-15]
• FP&A/Accounting split: Budget questions directed to FP&A; accounting entries directed to Accounting, formalised in FY2026 MOR process

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Open Questions & Gaps

• ClearCare gross profit accuracy: The exclusion of caregiver expenses from the ClearCare gross profit summary has been known since 2018 with no documented resolution. It is unclear whether offices are adjusting manually or accepting inaccurate figures.
• Revenue discrepancy (ClearCare vs. NetSuite/Planful): Cheque Emploi credits visible in NetSuite but not ClearCare create ongoing reconciliation gaps, particularly for Canadian offices [RE: Revenue Discrepency — 2026-02-09]
• Employee allocation corrections for FY2025 budget: Tyrone Butts noted corrections could not be made to the current forecast but would be addressed in FY2025 budgeting; resolution not confirmed [Re: Employee Allocations — 2024-10-23]
• FY2026 individual revenue targets rollout: The 2026 incentive plan financial target communication was pending distribution as of early 2026 [Monthly_GM_Meeting_2026_Incentive_Plan_Update.txt]
• Pro forma cash flow for CAD Amalgamation: Three-year pro forma financials were requested for the VCH vetting process in 2025; completion status is not documented [Re: Request for financial info — 2025-11-06]

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Related Topics

1. Caregiver Margin & Cost of Care

2. MOR (Month of Review) Process

3. ClearCare & NetSuite Systems

4. Incentive Compensation Plans

5. Canadian Subsidiary Operations & Compliance