This assignment will consist of developing a center-based financial operating budget. A break-even and Cash-flow projection are not required for this assignment. Students will develop the budget based on the following information.

• Use the ages and numbers of children, staff salaries, etc. from the Staffing Patterns Project
• Ratios: Use NH Licensing ratios
• Assume the program is non-profit (so this is a break-even budget)
• Food subsidy: student choice (current reimbursement rates and eligibility requirements can be found online)
• Grant funding (i.e. United Way, other foundations, etc.): student choice
• Use a Utilization Rate of 90% - utilization rate is the potential percentage of child care slots being used.  On Blackboard are articles with examples.
• Other Expenses (use these dollar amounts):

•  
  1. Rent:  Assume $2000 per month for rental property
  2. Insurance:  Assume $6,000 per year for property and liability insurance
  3. Utilities (electricity, phone, gas): Assume $1000 per month

• Food, equipment, classroom supplies, maintenance, and cleaning - students will determine the budget for these categories
• Other components to include:

•  
  1. Initial  and/or annual registration/enrollment fees (to make up for income lost due to utilization rate)
  2. Fundraising
  3. Professional membership costs
  4. Non-teaching staff salaries
  5. Curriculum materials
  6. Replacement items, i.e. furniture, computers, books, etc.
  7. Field trips
  8. Marketing/Advertising
  9. Office Supplies
  10. Attorney on retainer
  11. Tax preparation services
  12. The need for part-time staff

To supplement the budget, students will include rationale for any line items with comments in individual cells (i.e. how the number was calculated, determined, or estimated). In Excel, it will be apparent that students have included a comment because of a small red triangle in the right-hand corner of a cell. Students will also provide a reflection in a Microsoft Word document that addresses the following questions/statements in 2 to 3 pages:

• What did you find to be the challenges of creating this budget?  What, if any, were the rewards?
• Discuss what, if anything, you learned from this process? 
• Do you aspire one day to be in a position where you have the opportunity to create a budget for a child care center?

Posted Date: 2/16/2013 12:34:58 AM | Location : United States

Ask an Expert

Related Discussions:- Creating budget and annual operating budget assignment, Assignment Help, Ask Question on Creating budget and annual operating budget assignment, Get Answer, Expert's Help, Creating budget and annual operating budget assignment Discussions

Write discussion on Creating budget and annual operating budget assignment
Your posts are moderated

Write your message here..

Related Questions

Calculate cost of goods sold under throughput costing, The follow data rela... The follow data relates to year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dire

Determine the overhead allocation rate, Vintage Auto Company manufactures p... Vintage Auto Company manufactures parts to order for antique cars. Vintage Auto makes everything from fenders to engine blocks. Each customer order is treated as a job. Vintage Aut

what are the flexible budget formula, Question: Timothy Ltd uses a fle... Question: Timothy Ltd uses a flexible budget for overhead costs. The company expects to produce 40,000 units of the product it manufactures. Each unit requires 0.40 direct labo

Determine equivalent units of the product, Determine Equivalent Units of th... Determine Equivalent Units of the Product Let assume there are 4,000 units of a product in ending inventory out of that 60 percent are fully complete whereas the remaining are

Estimate fixed overhead variances, Estimate Fixed Overhead Variances ... Estimate Fixed Overhead Variances Referring to data, we can estimate the fixed overhead variances as given below: Budget for December 2003;

Flexible budget, Flexible Budget Flexible budget is a budget that is d... Flexible Budget Flexible budget is a budget that is designed to change in accordance along with the level of activity attained. It includes budgeting at various levels in anti

Overhead cost analysis and classification, Overhead Cost Analysis and Class... Overhead Cost Analysis and Classification Overhead costs may be analyzed into a) Which that may be directly identifiable along with a single cost center, as an  example of,

Wages department, Wages Department It is accountable for the preparati... Wages Department It is accountable for the preparation of the payroll and the payment of wages. The routine will need: a) Analysis of clock cards and verify of overtime aut

Why is the statement of cash flows useful, Explain:- Q Why is the statem... Explain:- Q Why is the statement of cash flows useful? Q. How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from opera

Chapter 4 Fundamentals of Cost Analysis for Decision Making, 31. Special Or... 31. Special Orders Maria’s Food Service provides meals that nonprofi t organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April