This reminds me of the movie Max, about the dog who was used in the Middle East war. Max had a trainer who was killed in the war and that death was the fulcrum of the story. When Max was brought home to America, the dog seemed to be lost. Fortunately, the handler's brother had the passion to take care of Max in honor of his brother. Sans the drama, Max acclimatized and became comfortable with his handler's younger brother.
In an institution, I think it is all right to have dogs particularly for the benefit of children like in hospitals or schools. However, the dog should have a dedicated handler and if I have the authority, I would require that the dog live with the handler. That means the handler and the dog would come to work every day as if the dog is also an employee. If there are no fixed handler for the dog then it may be confused and would suffer an emotional distress.
