Chirana Berntson

Ch.11 Budget to Actual Worksheet (50 pts)

Chd 270

PART I: THE BUDGET

This budget worksheet is incomplete you must complete it with the information given below
(fill in the shaded areas). (We will do Steps 1-4 together in class.)
Step 1. What is the budgeted Income?
(Licensed for 75 children; budgeted for 70 children -- why?)
Tuition Income:
Inf/tod (0 18 mo) = 2 rooms of 8 = 16 (tuition $950 per mo. per child)
= $15,200./mo.
Todds (18 mo 36 mo) = 2 rooms of 12 = 24 (tuition $800 per mo. per child) = $19,200./mo.
Preschoolers (36-60 mo) = 2 rooms of 15 = 30 (tuition $700 per mo. per child) = $21,000./mo.
ADD: Total budgeted tuition income = ____55,400______
/mo.**
(then put this amount in the budget below)
Step 2. You lose 2 infants and 3 preschoolers figure out how much this is and calculate Actual Tuition
Income put this figure in the budget below under Actual.*
Line Item
INCOME
Tuition
Registration fees
Fundraising
Total

Period of review: December 1 December 31

Budgeted
Actual
Differenc Comments
(Received)
e
**55,400
*51,400
4,000
Enrollment dropped*
300
0
(300)
No new registrations
0
0
55,700
51,400
4,300

Step 3. Expenses: ADD all the figures for Payroll and put in the Payroll column below
Staff Salaries/mo.(Payroll) based roughly on $20,000 annual salary: (FTE means Full Time Equivalent)
Infant Teachers 5 FT and 3 PT (6.5 FTE) = $10,835/mo.
Todds Teachers 4 FT and 2 PT (5 FTE) = $8,335/mo.
Preschool Teachers 3 FT and 2 PT (4 FTE) = $6,300/mo.
ADD: Total monthly salaries: = $_25,470________/mo.**
Step 4. Look at the Expenses Budgeted and Expenses Actual, below; figure out the Difference and record
in the Difference column. Then put a Comment where there is a question or a shaded area.
Line Item
EXPENSES
Payroll (salaries)

Budgeted

$
**25,470
FICA 1209
Health Insurance
Unemp. Comp 125

Actual
(Spent)
$25,470

Differenc
e
0

1209

0
0
0

125

Comments

(Can you afford it?)

(not actual)

Workers Comp
Rent
Electricity
Gas (heating)
Water/utilities
Phone
Insurance
Building Maint.
Office Supplies

125
5,000
400
500
200
150
650
200
50

125
5,000
325
650
189
150
650
350
10

0
75
-150
11
0
0
-150
40

Contingency Fund

200

200

Food Expenses

10,000

9,500

500

Repair roof leak

What is this?
(Why?)
Classroom
consumable
supplies
Furniture

800

550

250

100
45,179

0
44,303

100
876

Bill from ABC not received ($___)

Totals

PART II: ANALYSIS (individually)

Answer the following questions after you have completed both parts of the budget, above.
1. What is the state of your budget? Are you on track to balance your budget? Explain.
I have $876 in surplus from my budget. I believe that I am on track to balance my budget because even after
having to spend extra on fixing a leaking roof, extra money on the gas bill, and $200 towards a contingency
fund, I still have close to $900 in surplus. I think having this much extra is a good amount to shoot for in case of
the unknown, such as a major problem with the building.
2. What are some things you need to be concerned about? What are some strategies to address these concerns?
I think that we are budgeting too much on classroom consumable supplies and also maybe too much on our
food expenses. If we cut back the budgeting on these, maybe we could look into providing some health
insurance benefits to the staff. I also think we need to hire several more toddler teachers because we dont have
enough teachers the cover the 24 toddlers that attend.
3. Looking at the Quality Indicators, below, explain for each one (A. E.) how you maintain a quality
program while still maintaining a healthy budget.
Quality Indicators related to the budget (extracted from Is This the Right Place for My Child? 38
Research-Based Indicators of High-Quality Child Care. www.naccrra.org)
A. Caregiver/teacher-to-child ratios are appropriate and follow the recommended guidelines:
One caregiver per 3 or 4 infants
One caregiver per 3 or 4 young toddlers
One caregiver per 4 to 6 older toddlers
One caregiver per 6 to 9 preschoolers

If you meet these recommended guidelines, how do you (can you?) maintain a quality program while
still maintaining a healthy budget?
: We meet the recommended guidelines except for the toddlers group. I would like to suggest that we could
move one or two of the infant teachers to the toddler classroom. We have more than enough teachers for the
infant classroom to meet the guidelines. I would help them get training for this if they dont meet the
qualifications.
B. The number of children in each group is limited; in family child care homes and centers, children are in
groups of no more than:
6-8 infants
6-12 younger toddlers
8-12 older toddlers
12-20 preschoolers
20-24 school-agers20
If you meet these recommended guidelines, how do you (can you?) maintain a quality program while still
maintaining a healthy budget?
We meet the recommended guidelines for the group sizes. I think if we stick to these group sizes and maintain
our number of teachers to provide for them we can maintain a healthy budget by saving what we have extra
money every month.
C. Adults participate in ongoing training. (Is this reflected in the budget? How can it be?)
This is not reflected in the budget. We should start a new category for the budget where some of the extra
money goes each month for staff training. Training is important for keeping the staff refreshed with the
latest information and it helps to keep the children safer and get a better education.
D. There are sufficient materials and supplies. (How is this reflected in the budget?)
There are sufficient materials and supplies because for both office and classroom supplies we are in an
extra amount of almost $300.

E. The environment is clean, comfortable and safe. (How is this reflected in the budget?)
The environment is clean and safe because we didnt have to spend any money on furniture, the roof was
repaired, and we spent extra money on heating so the children and teachers must have been comfortable.
4. Finally, reflect on what are the ethical responsibilities of the director to children/families and to staff in
regards to the budget process? How does your decision making about the budget impact children/families and
staff?
It is the directors responsibility when creating a budget to make sure that there is enough resources to make
everyones needs met as best as possible. For the children and families, that means that there are enough staff to
take care of the childrens needs at a price that is acceptable to the families. The children also need to be safe,
well fed and comfortable while at the center. The staff deserve a group of children that they can manage, a
competitive salary, and as many benefits as possible. How the budget is divided up determines whether the

childrens, their families, and staffs needs are met. As the director, if you dont budget the money fairly or
without thinking about it one groups needs might not be met and there will be consequences such as staff
leaving or families having their children leave the center to enroll somewhere else.