ORGANIZATION AND MANAGEMENT OF ECCD PROGRAMMES

Lesson 07: Financial management of ECCE Programmes

Types of budgets

Budgets are classified in several ways. The creation of a new center demands one kind of budget while the ongoing operation of a center requires a budget of a different type. Budget may also reflect the center’s accountability mechanism.When a center is beginning operation the director prepares two budgets, the startup budget and the operational budget.

Start up budget: The start up budget covers all the expenses incurred in starting a center. These expenses include the down payment on the purchase of the building or the cost of the building (renovation, the rent), Deposit, the purchase of major equipment, the cost of publicizing the center, the director’s salary for several months prior to the children’s attendance, the deposit on telephone service and the utility charges during the startup period.
Operating budget: The operating budget consists of an income and expenditure plan for one year and is used when center enrolls children and begins the programme. Before hiring or purchasing can begin, the budget must be approved by the board and the funding source. Once a consensus has been reached and the budget has been approved the budget becomes the working financial plan and the director must see that it is followed.