Baruch College - CUNY
PAF 9140: Budgeting, Accounting and Financial Analysis I
Daycare Budget Preparation
Northville, a medium-sized city in the Midwestern part of the United States, has experienced a significant change in the composition of the municipal work force of 1,800 employees. Approximately forty-five percent of the city employees are female. In a recent survey of city employees over fifty percent of the employees said, "affordable day care for children is important to me." Meanwhile, the Director of the Office of Personnel, Mary Lux, believes that the lack of affordable day care is one of the main reasons for absenteeism and lateness among city employees. Mayor Petula Spark, several members of the city council, and the leader of the city employees' union, Denardo Legato, all agreed that something should be done. The question is, what should it be? Mayor Spark is in favor of doing something in principle, but she is not in favor of incurring a new major expense in the city's already strained budget. She told Legato, who is negotiating the day care program on behalf of the city employees, "We'll give you space and utilities for a year at no cost. It is up to you to come up with a suitable day care center that conforms to state and federal law." Several regulatory mandates and non-discrimination laws fall into this category. The only requirements imposed specifically on day care centers are that (a) they be licensed and inspected once a year, (b) all new day care teachers take part in a three day state-certified training program and (c) the child/teacher ratio be no greater than 6 to 1. The annual inspection fee is $2500. The total cost of the three-day training program is estimated to be $600 per teacher. All daycare teachers, regardless of hours worked, must receive the training. Mary Lux is responsible for planning the details of the day care program for the children of city employees. With Mr. Legato's...
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