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Atira Housing Organizational Decision-making

Name

School

Class

Respectfully Submitted

Date
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Contents
Introduction.................................................................................................................................................3
Critical Incidents..........................................................................................................................................3
Organizational Decision-making Issues........................................................................................................4
Conflict of interest...................................................................................................................................4
Why conflict of interest is an issue......................................................................................................5
Operation without an Accurate Budget...................................................................................................5
Why operation without an accurate budget is an organizational decision-making issue.....................6
Decision-making Map..................................................................................................................................6
Key Players...............................................................................................................................................7
Resources................................................................................................................................................7
Feedback Loops.......................................................................................................................................7
Other Pertinent Issues.............................................................................................................................8
Addressing Organizational Decision-making Issues.....................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Atira Housing Organizational Decision-making

Introduction
 Atira is the biggest housing provider under B.C. Housing has come under scrutiny after
the publication of a forensic audit.
 The investigation uncovered significant instances of mismanagement, as well as a
conflict of interest between the former CEO of Atira, Janice Abbott, and the previous
CEO of B.C. Housing, Shane Ramsay.
 According to Culbert and DeRosa (2023), although no individual gained significant
advantages from their relationship, the investigation uncovered that while Ramsay served
as CEO, Atira was granted contracts without undergoing a competitive selection process.
Additionally, Atira received a significant boost in funding and obtained a minimum of $3
million in COVID-19 funds without obtaining proper internal approval from B.C.
Housing.

Atira housing building

Critical Incidents
In the fiscal year 2021-2022, AWRS recorded 351 critical incidents.

 Among the critical incidents analyzed, drug poisonings accounted for 32% of the total,
violence-related incidents comprised 22%, health-related incidents constituted 16%,
deaths accounted for 7%, and incidents of fire represented 5% (Chan, 2022).
 According to the demographic data, it was found that 29% of the total critical incidents
involved individuals aged 31 to 40. Additionally, 19% of the incidents involved
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individuals aged 20 to 30, while 18% involved individuals aged 41 to 50 (McElroy,

2023).
 Regarding gender identity, 80% of individuals identified themselves as female, while 7%
identified as male.
 Finally, 40% of the respondents self-identified as Indigenous, 38% as white, and 3% as
Black.

Organizational Decision-making Issues

Conflict of interest
 The investigation identified mismanagement from a conflict of interest between the
previous CEO and his spouse, who holds the CEO position of B.C. Housing's biggest
housing operator.

Ramsay and Janice

 The conflict of interest regulations at the Crown corporation, which is responsible for
developing, managing, and administrating subsidized housing, were implemented to
exclude CEO Shayne Ramsay from any discussions or decisions concerning the Atira
Women's Resource Society. This precautionary measure was taken due to Ramsay's
marriage to Janice Abbott, who is in charge of the society, in 2010.
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BC Housing building

 Investigators discovered a deliberate and organized violation of the conflict of interest

regulations at the highest echelons of B.C. Housing. This misconduct included
manipulating meeting records, the absence of crucial financial records, and the
unauthorized expenditure of millions of dollars.

Why conflict of interest is an issue

 Conflict of interest creates biases and impairs the decision-making process. When
individuals have personal interests that conflict with the organization's best interests, their
judgment may be clouded, and they may prioritize their own interests over those of the
organization (Rahim, 2023).
 Conflict of interest undermines transparency and accountability in organizational
decision-making. When individuals with conflicts of interest are involved in decision-
making, it becomes difficult to ensure that decisions are made fairly and objectively.
 Conflict of interest causes misallocation of organizational resources. Individuals with
conflicts of interest may prioritize projects or investments that benefit them personally
rather than those that would generate the highest returns for the organization. Rahim
(2023) argues that this can lead to inefficient use of resources, missed opportunities, and
ultimately, financial harm to the organization.
 Organizations perceived as having a high prevalence of conflicts of interest may suffer
reputational damage. Stakeholders expect organizations to act in their best interests,
including employees, customers, and investors. If conflicts of interest are not
appropriately managed, it can lead to a loss of trust in the organization and damage its
reputation.
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Operation without an Accurate Budget

 BC Housing informed the auditors that Atira experienced a series of annual deficits, a
consistent pattern of delayed financial reporting, and frequent communication and
meetings regarding cash flow deficiencies.
 The report revealed that the organization operated without precise budgets over the past
five years or more, resulting in frequent financial shortfalls. As a consequence, Atira
consistently relied on B.C. Housing for additional funding to cover various expenses,
including payroll, building repairs, and furniture procurement.
 According to the report, the budgets were submitted past the deadline, and the
organization was not monitoring its revenues and expenses effectively.
 B.C. Housing received multiple requests from Atira for additional financial support in
order to fulfill payroll and supplier obligations. One specific instance of a funding request
pertained to allocating funds to account for a 27th pay period in fiscal year 2015, totaling
$300,000. B.C (Chan, 2022).
 The report outlines a series of events in which initial inaccuracies during the budget
preparation phase resulted in a cascade of cost overruns and ongoing negotiations with
B.C. Housing.

Why operation without an accurate budget is an organizational decision-making issue

 Without an accurate budget, it becomes difficult for the organization to understand its
financial position clearly. This makes making informed decisions about resource
allocation, investment, and expenditure challenging. The organization may end up
overspending or underspending on critical areas, leading to inefficiencies and missed
opportunities.
 A budget acts as a roadmap for resource allocation, ensuring that the organization
allocates its resources to the most important and strategic areas. Without an accurate
budget, the organization may struggle to plan its resources effectively, leading to
overallocation or under-allocation of resources (Rahim, 2023).
 An accurate budget helps an organization set realistic operational targets and goals. It
provides a benchmark against which the organization can measure its performance and
evaluate its success. Without an accurate budget, the organization may lack the necessary
metrics to gauge its performance and assess the success of its operations.
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Decision-making Map

Key Players Resources

CEO- AWRS Financial Resource

CEO- B.C Human Resources

AWRS

Board of
Directors Building infrastructure

B.C Housing
Funding from BC

Key Players
 CEO of AWRS
 CEO of B.C. Housing (Spouse of the CEO)
 Board of Directors
 BC Housing

Resources
 Financial resources
 Human resources (staff)
 Building infrastructure
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 Funding from B.C. Housing

Feedback Loops
 Financial Shortfalls: The lack of accurate budgets leads to frequent financial shortfalls,
requiring additional funding from B.C. Housing.
 Conflict of Interest: The conflict of interest between the previous CEO and his spouse
may impact decision-making processes, potentially influencing resource allocation and
organizational priorities.

Other Pertinent Issues

 Mismanagement: The conflict of interest identified in the investigation raises concerns
about potential organizational mismanagement.
 Reliance on B.C. Housing: The organization consistently relies on B.C. Housing for
additional funding, indicating a potential dependency on external sources.

Addressing Organizational Decision-making Issues

Government Board of
Directors Anonymous
Whistleblower
Hotline

Independent
Community AWRS Oversight
Committee
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Employees Clients

 Implemented a clear conflict of interest policy that prohibits any staff member or their
immediate family members from holding positions in organizations that may result in a
conflict of interest.
 Conducting regular audits and reviews to identify any potential conflicts of interest
among the staff.
 Established an independent committee to oversee and monitor the organization's
operations and ensure compliance with the conflict of interest policy.
 Established an anonymous whistleblower hotline to alert on; modifications to the project
approval procedures, bolstered governance oversight through the establishment of
meticulous processes and structures within the ministry, the inclusion of a government
representative on the board, improved tracking and reporting mechanisms to the board,
and revisions pertaining to the conduct of budgetary and financial evaluations of housing
providers.
 Providing training and education to all staff members about the importance of avoiding
conflicts of interest and the potential consequences.
 Developed a comprehensive budgeting process that includes accurate forecasting of
expenses and revenues.
 Assigned a dedicated finance team responsible for creating and managing the
organization's budget.
 Implemented regular budget reviews to identify any discrepancies or shortfalls and take
necessary corrective actions.
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 Explored alternative revenue streams and fundraising initiatives to reduce reliance on

external funding sources.
 Established financial controls and accountability measures to ensure proper financial
management and avoid overspending.
 Strengthened communication channels within the organization to foster transparency and
accountability.
 Enhanced collaboration and coordination among different departments to streamline
decision-making processes.
 Encouraged staff participation in decision-making through regular feedback sessions and
open forums..

Conclusion
 The audit discovered that Atira violated its operational agreements by using $2 million of
restricted, repayable funds to finance a property acquisition. The supplier circumvented
B.C. Housing's usual approval processes and personally contacted high-ranking officials
of the Crown corporation on many occasions to seek funds and make other demands.
 According to the EY Audit Report (2022), Ramsay often tampered with meeting minutes
to change concerns about acquiring an Atira property. Additionally, Ramsay routinely
conducted B.C. Housing business by text messages, but consistently erased these
communications.
 Through the established anonymous hotline, the independent oversight committee will
follow up on claims raised from the community, clients, employee, and any other persons
and make the required corrections.
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References
Chan, K. (2022). Scathing report on BC Housing partner Atira prompts calls for full audit. Daily
Hive. https://dailyhive.com/vancouver/atira-bc-housing-mismanagement-audit?
__cf_chl_tk=8DbtuspNcdIl2DeImS6zRVq5Jjx48zaPqrG3XsQUZMM-1701936375-0-
gaNycGzNDhA

Culbert, L., & DeRosa, K. (2023). Peering inside the Atira-B.C. Housing scandal with staff,
tenants and critics. Vancouver Sun.
https://vancouversun.com/business/local-business/peering-inside-the-atira-b-c-housing-
scandal-with-staff-tenants-and-critics

EY Audit Report. (2022). Financial Systems and Operational Review of B.C. Housing.
https://www2.gov.bc.ca/assets/gov/british-columbians-our-governments/organizational-
structure/crown-corporations/ey-report-bc-housing.pdf

McElroy, J. (2023). From deleted texts to modified report minutes, 8 red flags identified in the
B.C. Housing investigation. CBC. https://www.cbc.ca/news/canada/british-columbia/bc-
housing-red-flags-atira-1.6836845

Rahim, M. A. (2023). Managing conflict in organizations. Taylor & Francis.