Todays early childhood educators face management and strategic challenges in an increasingly turbulent environment; rapid growth demands increased managerial proficiency. In order to meet these critical challenges, agency leaders must develop entrepreneurial competencies and a firm understanding of core management theories and principles. At times, even the most successful organizations need to redefine business goals and create innovative strategies to excel at a new level. This paper will address the key issues of financial management in an ECD center.
Financial management of a school entails School financial analysis and reports, finance policy and procedures, finance resources, school funding, High Yield Investment Accounts, worksheets, taxation and schools education and training funding. (Grossman and Keyes, 231). Finance resources and school funding From National Economic Development and Law Center For the market feasibility analysis for income generation, the financial administrator need to assess what works most effectively for a particular area and the families being targeted.
An advertising budget is Set-aside with determination on how to get the most out. A strong market feasibility analysis for a facility development project would prove that there are enough resources. According to (name of first ECD center) there is market demand for child care at rates sufficient to generate revenues to cover not only operating expenses, but also debt service on any loans incurred to develop the facility.
Financial feasibility analysis assesses key areas concern with the day care; mainly the number of other child care programs (both center and family based) that already exist in the community; The number of child care spaces already provided in the area; The vacancy rate of other programs in the area; The average cost of care got by contacting and visiting existing providers to find out about their vacancy rates and the kinds of services they offer; The length of current waiting lists that other market-area child care programs currently have; (For existing programs) the length of the business waiting list; Age groups that are being served (infants, toddlers, preschoolers, school-age, or a Combination) or that are NOT being served by other programs; Locations of existing child care businesses in your vicinity; The services your proposed business or expansion can provide that other child care providers are not offering, and Types of services offered by existing child care businesses. (Name of the second center) School financial analysis and reports The administrator describes how the funds being requested will be used. These expenditures should also demonstrate that the center is a good investment, and it shows that the business is financially sound and well managed. The financial analysis section contains four components:
Firstly the Summary of financial needs that briefly describes why funding is needed, the type of funding required, total amount needed, and how the funds will be used. Secondly is the A well-prepared development budget showing that the costs involved have been carefully considered including both the line item costs and the known or anticipated sources of funding. Thirdly is financial projections which are financial statements used to predict the future profitability of a business. Projections should be based on realistic research and reasonable assumptions. They include cash flow projections; income (incoming money from parent fees, vouchers, state subsidies, etc.
), and expense projections (health care, tuition or anticipated). Lastly, It is necessary to include financial statements that reflect the businesses past financial activities, a statement of financial position, and a cash flow statement. Previous financial statements or projected statements. (Brealey et al, 1996) Conclusion From Children research, ECD centers ought to be warm nurturing learning environment with trained caring staff, nutritious meals, in a central location of a community having a large safe outdoor play area. These are key areas that a financial administrator should ensure maximum financial support is given as the backbone to the center. (Early Childhood Educational Issues). References:
Grossman B, Keyes C Early Childhood Administration, Michigan: Allyn and Bacon National Economic Development and Law Center (2003) Child Care Center Financial Planning and Facilities Development Manual 22nd April 2008