ANNUAL REPORT 2008 - 2009

Financial Statement

Although Childcare Learning Center faces many challenges created by the current economic conditions, long-term financial health remains strong with $8.8 million in assets and $3.1 million in cash and investments. CLC's cash flows remain stable and sufficient to meet the daily needs of the organization.

The current financial environment for State and Federally funded childcare presents many challenges. As a result, Childcare Learning Centers, like many childcare programs, ended fiscal year 2009 with a deficit of $137,631.

The fiscal year 2009 revenue was $14.2 million, a decrease of $132,000 or .93%. This decline is primarily attributable to reductions in contributions and program fees. The economic recession created a challenging fundraising environment. In addition, fees declined since fees for our state and federal programs are set on a sliding scale based on family income and many of our families experienced a decrease in their income.

Operating expenses totaled $14.3 million in fiscal year 2009, a decrease of nearly $1.3 million or 8.2% over the prior year. This decrease was achieved through careful review of each expense item in order to improve efficiencies while maintaining program quality. Some of the key initiatives that led to the cost savings were a reduction in the number of administrative staff, outsourcing the food service operation and controlling other than personnel expenditures.

The annual operating budget continues to be developed with direction from the Board of Directors. In addition, program directors review variance reports on a monthly basis to ensure spending is within budget. Variance reports and budget projections are presented monthly to the Finance Committee who makes financial decisions based on the organization's long-term goals and objectives. The resulting rigorous review of the financial reports enables the agency to carefully monitor the status of agency funds and make necessary adaptations in order to ensure a fiscally sound future.

CLC looks forward to a year of continued improvements in the operation as the agency implements it plans to consolidate some of the outside sites into one larger center.