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?