Council Of Parent Participation Preschools In BC

Setting the Preschool Budget

Do You Need a Budget Committee?

Some preschools set up a Budget Committee, although this varies with each individual preschool. The committee may include both outgoing and incoming Presidents and Treasurers and any qualified, interested person(s). If the preschool is small, there is less need to have a full committee. Larger preschools may find that a committee allows for discussion of various opinions and priorities.

The draft budget must be presented first to the Executive and then ratified (voted and approved) by the General Membership at either a Special General Meeting or Annual General Meeting. Check your preschool constitution and bylaws to see what type of meeting is necessary (and the appropriate advance notification needed).

Once the budget is approved, all expenditures named in the budget can be made without further discussion with the general membership. This eliminates making the entire group vote on every purchase. However, the Council suggests that you set a clear limit, i.e. any purchase over $150.00 must go to the whole group for approval.

A budget is always a working document. This means that, if unforeseen circumstances arise, you can amend the budget and have it approved again. For example, your preschool is told you must replace large equipment by next month. You have to spend an additional $8,000 on this, and it means trimming the budget in other areas plus mobilizing money set aside in a GIC. To meet the changing needs of the preschool, this would be a good time to amend the budget and have the general members approve the changes.

Preparation:

The budget should include all potential income sources and expenses for the whole preschool year. The specific categories will vary with each preschool. You need a proposed budget ready for the Special/Annual General Meeting every year. Go over it first at the Executive meeting. Ask the Executive if they agree with the amounts shown in each category, e.g. Parent Education. Avoid presenting the budget at the last meeting of the year when all the new parents attend – it’s too confusing and too much new information.

The membership must vote on the draft (proposed) budget. If passed, it becomes the Approved Budget for the upcoming year.

You need:

  1. The past year’s budget report;
  2. The Supervisor’s (and Assistant Supervisor’s) contract(s) to calculate wages;
  3. Current and last year’s Annual Financial Statements. The budget report from the current year plus the Financial statements from the previous year will give you an idea of what you have spent in the past and how much you have spent in each category so far this year);
  4. Prior to drafting the budget, ask for input to the Budget Committee/Treasurer from the Executive, teacher, and general membership (i.e. supplies, parent education speakers, equipment, etc.).

Note: If you have an Equipment Committee, they should draw up a budget for large purchases, such as playground equipment, classroom furniture, or other larger upgrades to the preschool’s facilities. These should be approved through the budget, including long-term planning, fundraising, and contingency funds.

Budget Format:

Your preschool budget should itemize the different sources of revenue and expenses, which may include but are not limited to the following categories:

Income:

Monthly Fees

Registration Fees

CCOFP

Gaming/Grants

Fundraising: This may overlap with Gaming, but all revenue from Licensed gaming should go in the Gaming/Grants line

In-Kind Volunteer Hours and Materials

Interest

Expenditures:

Salaries: Include the school's portion of CPP & EI contributions, WorkSafe, sick leave, substitute supervisor(s)

In-Kind Volunteer Hours and Materials: Should match the amount above in Income

Rent: Include janitorial service, heat, and light if applicable (or property taxes)

Insurance: Available through the Council, including coverage for Property, 3rd Party Liability, and Directors & Officers

Rentals: Equipment, projectors, etc

Telephone:phone, internet, fax, etc.

School Supplies: paint, paper, markers, etc.

Office Supplies: paper, postage, stationary, toner for copiers, etc

Parent Education: monthly speakers’ fees

Photocopy: copying of newsletters, financial statements, etc.

Annual Financial Review: independent review of the books

Bank Charges: monthly bank fees, cheque orders, NSF cheque charges

Payroll Charges (if you use a separate bookkeeper or company)

Council Registration Fees
Advertising/Enrollment: flyers, business cards, posters, website hosting, etc.

Equipment: new purchases, maintenance, and repairs

Field Trips

Hospitality:coffee/food supplies for meetings etc.

Minister of Finance:Annual Societies and Change of Director filings

NOTE:In determining the budget, estimate your revenue and your fixed expenses (salary, rent, etc.) accurately. From the balance, allocate amounts to less fixed expenditures (Parent Education, Supplies, etc.). If you cannot cover the latter items with regular income, the Fundraising Committee can plan for fundraising to cover the balance. Try to avoid the need to fundraise just to cover normal operating costs like salary and rent.

Ideally monthly preschool fees cover most of the normal operating costs.