Childcare Learning Center's long-term financial health remains strong with $8.8 million in assets and $3.0 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 2008 with a financial deficit due to flat government funding that exceeds expense growth. In addition, economic market conditions in the later half of 2008 resulted in decreased investment income. In previous years the agency experienced significant growth in the invested assets.
Although expenses have increased by 3.74% over the prior year, the agency strives to maintain a balanced budget. Salaries, the single largest expense at the agency, grew by 4.36%. The agency's focus on controlling expenses resulted in a decrease of 1.29% over the prior year.
Another achievement of fiscal year 2007-2008 was the implementation of financial planning procedures that incorporated department directors into the budget process.
The annual operating budget continues to be developed with direction from the Board of Directors. In addition, 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.
A new audit firm was engaged in August 2007 to review our financial records. Recommendations made by the auditors to management regarding improved internal controls were incorporated into agency policies and procedure. As a result the agency has better management of financial processes.
CLC looks forward to a year of continued improvements in the operation of the agency as it plans for the consolidation of the outside sites into one larger center.