Budgplan

SAMPLE BUDGET FORM

Number of Weeks of Operation 52

Number of children: 12 infants, 12 toddlers, 40 preschoolers 64

Tuition: Infants ~$230 per child per week 5 $143,520 per year

Toddlers ~$185, per child per week 5 $115,440 $518,960

Preschool ~$125 per child per week 5 $260,000

INCOME AMOUNT

Fees From Tuition

• As a general rule, calculate approximately 75% of total enrollment for the fi rst year. • Decide whether you will charge a fl at weekly rate per child or charge by the hour? • Decide whether you will charge more for a three-hour block (often for preschool $519,200

enrichment versus child care)

• Will you charge parents for holidays, sick days, special staff training, and development days and vacation?

• Will you off er a second-child discount for siblings? • Will you have a sliding fee scale?

Registration Fees

• Will you charge an enrollment fee per child? How often? At $50 per child per year • Will that fee be deducted from tuition charges? $3,200 • Will that fee be per child or per family?

Transportation Fees

• Will you charge for providing transportation for children to and from their home At $50 per child per or school to your center? If so, calculate the cost of gas, oil, tires, repairs, and week 3 12 children 5 additional insurance into the fee determination for this service. 12 3 52 3 $50 5 $31,200

USDA Food Program Reimbursement

• If you choose to participate, your potential USDA income will vary depending upon the income levels of the families you will serve.

Fund-raising and Contributions

• Design a plan to solicit contributions, gifts/donations. $ 6,000 • How much fund-raising is realistically possible?

Grants $ 5,000

Total Yearly Income $564,600

EXPENSES AMOUNT

Personnel Considerations:

• Determine your staff /child ratio based on the ages of your children. • Determine salaries for each position based on the going rate in your area. • Decide whether you off er higher-than-average salaries to attract candidates with

higher qualifi cations.

• Will you off er paid breaks and lunch periods, paid set-up and closing times, and paid planning time per week?

F I G U R E 1 0 - 1 Sample budget form.

08989_10_Ch10_p259-279 PP3.indd 263 3/12/10 5:47:55 PM

• Will you need substitutes for staff illness and/or vacation? • Will you need to hire staff for meal preparation, building maintenance, transportation,

landscaping, and/or snow removal?

• Include cost of hiring substitutes for 20 days per year.

Salary Detail

Director’s Annual Salary FT $ 35,000

Head Teacher’s Annual Salary FT $ 28,000

Assistant Teacher’s Annual Salary FT $ 24,000

Aide’s Annual Salary FT $ 15,000

Secretary’s Salary—50% time, 20 hours per week $ 15,000

Substitutes—$15/hour 3 8 hours/day for 20 days/year $ 2,400

PERSONNEL EXPENSES

1 Director $ 35,000

4 Head Teachers $ 112,000

4 Assistant Teachers $ 96,000

4 Teacher’s Aides $ 60,000

Personnel Sub-Total $303,000

Fringe Benefi ts

• Calculate: ♦ FICA

♦ Unemployment compensation

♦ Workers’ compensation

• Determine whether you will off er such additional benefi ts as: ♦ Health insurance

♦ Tax deferred annuities

♦ Child care

♦ Paid sick time

♦ Paid holidays/vacations Approximately 25% of

♦ Cafeteria plan Total 5 $75,750

Approximate Cost of Fringe Benefi ts

Personnel Total $ 378,750

OPERATING EXPENSES

Activities—Based on $25 per child per year $ 1,600

Advertising

• Business cards • Advertising $ 1,500 • Distribute fl yers and/or brochures

Audit $ 1,200

Books and Subscriptions $ 600

Contingency Fund—recommend no less than 3% of operating budget $ 14,000

Dues and memberships $ 250

Equipment—Major (Equipment lasting longer than two years, $500 or more,

anything you can depreciate)

F I G U R E 1 0 - 1 Sample budget form (continued).

08989_10_Ch10_p259-279 PP3.indd 264 3/12/10 5:47:55 PM

• Kitchen—equipment for meal preparation (stove, refrigerator) • Housekeeping—vacuum • Offi ce—computer, desk, copier, fi le cabinet • Educational $ 6,000

♦ Additional furniture for the children

♦ Additional toys/manipulatives for:

o Large and small motor activities o Dramatic play o Language development o Intellectual stimulation

Equipment—Minor

• CD players • Microwave $ 3,500 • Camera • Meal cart

Fees—Licensing fee, fi ngerprinting costs, and so on $ 1,500

Food—Meals and snacks

• Th e current national average is approximately $1.52 per day. Formula for calculating the $ 25,293 cost of food is $1.52 3 the # of days 3 the # of children

Garbage—calculate per month cost 3 the # of mos. of operation $ 600

Insurance

o Liability o Building and premises $ 5,000 o Personal property o Professional liability o Auto

Interest $ 1,000

Legal/Accounting/Consultation $ 1,500

Maintenance/Repairs—(plumbing, lawn care, snow removal, repair, maintenance of

heating/air condition, and so on)—calculate per week cost 3 the # of mos. of operation $ 3,200 Postage—Mail brochures or packets to prospective parents, newsletters $ 600

Printing $ 800

Rent/Mortgage $ 15,000

Repairs—calculate per month cost 3 the # of mos. of operation $ 500 Offi ce Expenses and supplies—calculate per week cost 3 the # of mos. $ 600 Supplies—Housekeeping, kitchen, and classroom consumable supplies $ 4,000

Telephone $ 720

Travel and transportation

• Staff Travel—Pay staff travel for conference attendance, and so on $ 10,500 • Auto Expenses—Lease/purchase a van and related auto costs Utilities—Water, electricity, heat, air conditioning—Project 5% increase per year $ 3,600

TOTAL EXPENSES $ 491,113

F I G U R E 1 0 - 1 Sample budget form (continued).

08989_10_Ch10_p259-279 PP3.indd 265 3/12/10 5:47:55 PM