Search

This report presents the findings of the data collected from 29 day care centers (in the Chicago area and downstate Illinois) during the field test of the Day Care Cost Analysis Manual. The test had two aims: (1) to determine whether the manual's procedures are feasible for conducting a cost analysis, and (2) to collect data on the income and costs of operating day care programs. Included is a review of the strategies used in the collection of data, the findings of the field test, and a discussion of the methodology and concepts of cost analysis. (SET)

This manual is designed to provide fundamental directions for systematic financial reporting and cost analysis for the administrators, accountants, bookkeepers, and staff of day care, Project Head Start, and other programs. The major aims of the manual are to induce day care directors to adopt uniform bookkeeping procedures and to analyze costs according to function. Part I includes some standard bookkeeping practices: a detailed description of a bookkeeping system based on accrual accounting, practice exercises for bookkeeping, and instructions for setting up a general ledger and journal, and cash receipts and cash disbursements journals. Part II covers the strategy for day care cost analysis; guidelines for imputed income and expenses; a means of studying the utilization of time; and instructions for analyzing cost, calculating units of service and calculating the cost per child-hour and per child-year. Worksheets are included. Appendices have outlines of supplementary financial material. (SET)

Development of precise and usable information on the financial operations of day care centers has been hampered by a lack of definition of types of programs and units of service, and confusion in comparing prices and costs. This article reports on the testing of a system of financial reporting and cost analysis, applied to 29 day care centers and Head Start programs. (Author/CS)