What would be the short-term and long-term recommendations for the Appaloosa County Day Care Center facility? ### Transcription for Educational Website---**Food Costs**The center provides food for AC/DC patrons, but it does not charge a separate fee for lunches or snacks or meals. The cost of food is included as part of the tuition fee. In addition, the employees are entitled to one meal during their lunch hour or evening meal on-site if staff remains so their meals are also provided by the center. All children and classroom staff receive breakfast, lunch, and two snacks a day.**Occupancy Costs**Building Resource Costs: ACDC worked in conjunction with the local school district and the Head Start program prior to constructing the facility. The existing building was purposely built larger than the space required by the day care only. Consequently, when it came time to analyze costs, it was the board's opinion that the Head Start and school district programs should share in the cost of the loan and the building (i.e., interest expense and depreciation).Utilities: When AC/DC designed the facility, it considered the needs of the tenants and designed their rooms accordingly. The board did not have the foresight, however, to set up the tenants' rooms with their own gas, electric, and water meters. Therefore, all the utilities are measured through common meters, and AC/DC pays the bills for the entire facility. The only exception to this is the telephone expense, as each program contracts and pays for its own phone service. See Exhibit 2 for details.Maintenance, etc.: As specified in the lease agreement, AC/DC pays the entire building’s expenses related to maintenance, cleaning supplies, and sanitation. See Exhibit 2 for details.**Insurance Costs**ACDC has four different insurance coverages: property, general liability, officers’ bond, and workers’ compensation. The property insurance covers the entire building. The general liability insurance covers the children and staff in the AC/DC program and helps protect the center against accidents or claims against the staff. The tenants must carry their own liability insurance. The bond insurance of the officers covers the center for any inappropriate handling of financial matters by the board of directors. Finally, the workers’ compensation insurance covers the administration and AC/DC employees for work-related injuries.**Exhibit 2**- **Proportion for Building Lease**1. **ACDC** follows this cost-sharing method: - The total area (5,850 sq. ft.) in the "ACDC" day care center is occupied by multiple programs. - The main distribution is as **ACCT640 - Group Project****IMA EDUCATIONAL Case Journal**---**Appaloosa County Day Care Center, Inc.***Kristen Irwin* *Truman State University**Debra Kerby* *Truman State University**Sandra Weber* *Truman State University*---**BACKGROUND**The Appaloosa County Day Care Center, Inc. (ACDC) began operations in a vacant warehouse retrofitted with bathrooms and kitchen facilities. ACDC’s mission is to provide quality, affordable childcare to the residents of the community and surrounding area. The service area is a rural, economically depressed county that continually ranks in the lowest 10 percent of per-capita income in the state. The organization’s seven-member board of directors is comprised of volunteer representatives from various agencies throughout the community—the school district, community college, hospital, Department of Human Services, etc. The board members bring a breadth of human services experience to the oversight of the day care, but most do not possess an accounting or financial background. While they were committed to the financial viability of the day care, they initially focused on the center’s mission—to provide affordable childcare to working-class families. As a result, the board set childcare rates to achieve their goal of affordability rather than assuring adequate revenues to provide high-quality services while reaching breakeven points.From its founding, the center faced another significant challenge. The center was the first of its kind in the community, so negative perceptions about using “institutionally” provided day care were prevalent. Local families preferred to use in-home childcare provided by friends or relatives. These perceptions and preferences, coupled with poor administrative practices, caused the center to struggle continually to meet its financial obligations.ACDC was almost forced to close its doors on more than one occasion. The financial performance of ACDC is not unusual, as many community-based day care facilities struggle to remain open.**DAY CARE INDUSTRY REVENUE AND COST PATTERNS**As an industry, day care facilities generally operate with very low profit margins. Typical for-profit day care profit margins are approximately 4 percent, with about 70 percent of a center’s total costs attributed to wages and other employee-related costs (Herbst 1995, 172, 176). The state’s Department of Human Services’ licensing regulations drive a significant level of employee-related costs. These regulations mandate a strict staff-to-child ratio that all licensed facilities must follow. For example, infant care

It is the process of making decisions that involve the management of costs to achieve long-term goals and objectives. It involves analyzing the cost of various options and choosing the most effective and efficient course of action.Appaloosa County Day Care should consider various factors such as infrastructure, staff, safety, curriculum, and community engagement, in determining the short-term and long-term plans. The following are some of the short-term and long-term recommendations for the Appaloosa County Day Care Center facility:Short-term recommendations:Safety audit should be conducted on periodic basis to identify and address potential hazards or safety concerns.Staff should be adequately trained on emergency procedures, first aid, and child safety.Stafff should be adequately trained on reinforcing and montoring hygiene practices to prevent the spread of illnesses.Information on daily activities, upcoming events, and any changes in schedules should be properly and regularly communicated to the parents.Infrastructure of the day care facility should be properly monitered and should address the maintenance issues.Long-term recommendations:As per the children available in the facility, plans to expand or upgrade the facility should be considered.Comprehensive and age-appropriate curriculum that focuses on educational, social, and emotional development should be developed and implemented.Should adapt with the new learning techologies and invest on them to make the children are integrated in par with these new techologies.Continuous quality improvement process to assess and improve the overall quality of the daycare services on a regular basis should be established.Parental involvement through workshops, open houses, and regular parent-teacher conferences should be regularly conducted.Explanation was provided above.

Answered: What would be the short-term and…

Business

Accounting

What would be the short-term and long-term recommendations for the Appaloosa County Day Care Center facility?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

I NEED ANSWER ASAP. 1. What are the benefits of capital budgeting tools to family's financial transactions? How does they use capital budgeting tools? Provide examples and explain. Minimum 200 words
Discuss the impact risk exposures have on families and friends.
A flood insurance rate map Specifies a designated floodplain management program for a community. Determines exact rates that insurers charge for flood coverage. Shows the exact boundaries for special flood hazard areas (SFHAs). Specifies the maximum amounts of insurance available under the programs.
How can CVP Analysis be used to predict future cost and profitability? How can CVP analysis be used in a hospital setting?
Explain briefly "TBD" or Transportation Benefit District?
identify the life cycle costs for a proposed wind farm.
Describe the major elements of the affordable care act. What problem is the legislation trying to address? How much is it expected to cost? How will the extra spending be financed? What are the major objections to the legislation?
Net Present Value and Internal Rate of Return. Below are the projected revenues and expenses for a new clinical nurse specialist program being established by your healthcare organization. The nurses would provide education while patients are in the hospital and home visits are on a fee-for-service basis after patients have been discharged Should the hospital undertake the program if its required rate of return is 12%? Note: it must be assumed that the revenues and costs in this problem represent cash flows. Present value analysis is based on cash, not revenue or expenses. Provide a response to support the findings in the table listed below. Your response should be at least a half page long in addition to the table. Please include citations. Year One Year Two Year Three Year Four Total Revenue $100,000 $150,000 $200,000 $250,000 $700,000 Costs $150,000 $150,000 $150,000 $150,000 $600,000 $ <50,000> $0 $50,000 $100,000…
From the Case Study"DISTRICT HEADQUARTER HOSPITAL: FINANCIAL FEASIBILITY STUDY" Prepare in as much detail as possible, the projected financial statements, for District Headquarter Hospital for the next six years. The financial statements should comprise projected Balance Sheets, Income Statements and Cash Flow Statements for each of these years.
In this part of the project, you will be purchasing the home you chose in the Budget Project. You will need to obtain a loan from a financial institution since you cannot pay cash for your home. You will be researching three different loan scenarios and determining which loan option best fits your situation and needs. Purchase price of the home you chose from the Budget Project: ________$431,873______ Part 1: Financing your home Loan Scenario 1: In this scenario, your financial institution is offering you a 30-year fixed mortgage with a 20% down payment at a 3.43% fixed rate. Determine the following: Calculate the down payment for this loan. How much will you need to finance from the bank for this loan? What is your monthly payment? Use technology or the monthly payment formula in your text to get the monthly payment for this loan. What is the total cost of the loan over 30 years? How much of this cost is interest? What is the total you will expect to pay at closing for this loan…
question 7. Fill in the blank. The following table contains select data concerning several outpatient clinics in a new ambulatory care center at Hope University Hospital. Fill in the missing information
Below are the projected revenues and expenses for a new clinical nurse specialist program being established by a hospital. Nurses would provide education while the patient is in the hospital and home visits after patient discharge on a fee-for-service basis. Should the hospital undertake the program if its required rate of return is 12%? Year 1 Year 2 Year 3 Year 4 Total Revenue costs 100,000 150,000 200,000 250,000 700,000 150,000 150,000 150,000 150,000 600,000 (50,000) 0 50,000 100,000 100,000