ECE 24: Administration of Programs for Young Children

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ECE 24 Administration of Programs for Young
Children

• Session 8
• Finance and Budget
• Professor Wendy Hinrichs Sanders

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Agenda

• Presentation Linking with Others
• Susan Shepherdson, Child Care Coordinator,
  Coachella Valley Child Care Council
• Mid-Term Exam
• Open Book
• Teamwork
• PresentationFinance and Budget
• Sharing Director Interviews

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One great resource. . .

• http//www.wccip.org
• Books from Redleaf Press

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Guest Presentation

• Susan Shepherdson
• Linking with Other Early Childhood Professionals
• How does is information an asset to you as a
  child care director?

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Mid-Term Exam

• Open Book
• Work in Study Group teams
• One Hour

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Finance and Budget

• Key elements
• Income
• Expenses
• Start-Up Budget
• Continuing Budgeting

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Income

• Tuition
• Child Care Food Program
• Grants
• Donations
• Registration Fees

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Expenses

• Personnel (70)
• Salaries, social security, workers compensation,
  medicare
• Facility (10)
• Utilities
• Rent/mortgage
• Insurance
• Equipment
• DepreciationComputer 1000 / 5 years 400/yr
• Supplies
• Postage, disposable classroom (crayons),
  telephone,
• Food
• Miscellaneous
• Training
• Marketing
• NAEYC Accreditation Fee
• Transportation
• Accounting Fees
• Licensing Fee

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Income OVER Expenses

• Go to the chalkboard and draft a budget.
• Set fees based upon costs
• Consider start-up enrollment projections

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Case Study

• Wendy is building a budget for a group child care
  center. She has a facility that will be donated
  to her use as a child care center which is
  licensed for 40 children6 infants, 12 toddlers,
  24 preschoolers and all she has to pay is
  utilities (300/m).
• Develop a start-up budget for her

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Case Study

• Rene has an existing child care center which is
  licensed for 40 children. The average wage is
  8.50 an hour for staff in the Valley and she
  pays this, but she has a high staff turnover
  ratio. Given your start-up budget, help her
  consider how she can pay higher wages or job
  enrichment. . . .

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Case Study

• DJ has purchased Wendys center after she ran it
  for 10 years. The center is full, but the
  equipment (paint, playground, large motor,
  electronics, photocopier, book cases) are getting
  old and DJ needs to budget for substantial
  program improvement costs. Use the budget youve
  developed to propose ways to find funds for the
  equipment purchases

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Case Study

• When Wendy sold the center, the free rent was
  lost since it was a personal connection with
  Wendy that enabled the free rent. Now the owner
  will charge DJ rent each month. Should she
  continue to rent or find a building to buy? Why
  or why not? Make a list of the pros and cons to
  renting the facility vs. buying a different
  facility.

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Interviews with Directors

• Share with your group one insight you gleaned
  from the interview.
• Turn in the interviews to Wendy.