Budget Assignment

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1) Your budget is written with a 5% vacancy in enrollment contingency rate. For three months straight your vacancy rate has been about 6% percent. Would you try to make adjustments to the budget? If yes, what budgetary adjustments might you make? If you are not planning to make adjustments, explain your reason.

2) You are six months into to the school year and you notice that your food expenses to date equal $15,200. You have budgeted $27,000 per year for food. What information have you learned from this analysis and what will you do with this information? Note – your center does not participate in the CACFP – State food program, nor does it receive any other food reimbursement. Food costs are included as part of the student tuition. Would you include any other person/s when analyzing this issue and why would they be included?

3) You have budgeted $5,500 for educational supplies. The center consists of three preschool classrooms, one toddler room, and one infant room. Your preschool teachers come to you wanting a very expensive piece of playground equipment for the preschool playground. This piece of equipment would be about 65% of the allocated budgeted amount. How do you decide if you buy this piece of equipment? Do you take into account that this equipment will not benefit the children on the infant and toddler playground? Explain what decisions you would make and why?

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