For the exclusive use of I. Amar, 2016. HBSP Product Number TCG 229 THE CRIMSON PRESS CURRICULUM CENTER THE CRIMSON GROUP, INC. University Day Care

HBSP Product Number TCG 229 THE CRIMSON PRESS CURRICULUM CENTER
THE CRIMSON GROUP, INC.
University Day Care Center
Susan Brooks, Director of the University Daycare Center, was reviewing the year-to-date Budget
Performance Report from the Finance Department of the university. As she tried to analyze the
components of each report, she realized that something needed to be done about the Center’s
financial status. The variance analysis for the Daycare Center showed a shortfall of over $89,000
(Exhibit 1).
BACKGROUND
University Daycare Center (UDC) was affiliated with a large urban university and maintained a
facility located two miles from the main campus. It had passed state inspection in April, and had
opened in July, just in time for the beginning of the fiscal year. The building in which the UDC was
located had formerly been an elementary school. The Center occupied one corridor, with four large
classrooms on each side. Two other corridor ls in the same building were unoccupied and had not
been renovated. At the the end of the hallway was the Director’s office and a small reception area
where parents arrived with their children, usually by eight o’clock in the morning.
The rooms had been carpeted and all of their doors had been removed to decrease the possibility
of injuries. Additionally, the walls had been remodeled so that glass panels occupied the upper half
of each wall on the corridor side. This made it possible for Teachers and Aides to observe children
directly from the hallway. Each room was supplied with furniture, supplies and toys appropriate to
different age groups of children. The infant room, for example, had cribs and bassinets and was
stocked with various sizes of disposable diapers. The facility was cleaned and maintained,
respectively, by the housekeeping and maintenance departments of the university.
In December of the previous year, the university’s Department of Human Resources had
surveyed 300 of the 1250 university employees, including professors, administrative personnel,
laboratory workers, and office assistants, to determine if they would utilize a daycare center. The
survey included questions about fees, hours of operation and coverage for emergencies. The
response was overwhelmingly in favor of providing such a service. The Human Resources Director,
therefore, had drafted a proposal for the following year’s budget and received approval for a oneyear $160,000 subsidy for the operation of a daycare center. Funds for the remodeling and
furnishing of the Center were to be obtained from the Capital Improvement fund and the building

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