Appaloosa Day Care Case 2
ISSN 1940-204X
Appaloosa County Day Care Center, Inc.
Kristen Irwin
Truman State University
Debra Kerby
Truman State University
Background
ACDC was almost forced to close its doors on more than one occasion. The financial performance of ACDC is not unusual, as many community-based day care facilities struggle to remain open.
The Appaloosa County Day Care Center, Inc. (ACDC) began operations in a vacant warehouse retrofitted with bathrooms and kitchen facilities. ACDC’s mission is to provide quality, affordable childcare to the residents of the community and surrounding area. The service area is a rural, economically depressed county that continually ranks in the lowest 10 percent of per-capita income in the state.
The organization’s seven-member board of directors is comprised of volunteer representatives from various agencies throughout the community–the school district, community college, hospital, Department of Human Services, etc.
The board members bring a breadth of human services experience to the oversight of the day care, but most do not possess an accounting or financial background. While they were committed to the financial viability of the day care, they initially focused on the center’s mission–to provide affordable childcare to working-class families. As a result, the board set childcare rates to achieve their goal of affordability rather than assuring adequate revenues to provide highquality services while reaching breakeven points.
From its founding, the center faced another significant challenge. The center was the first of its kind in the community, so negative perceptions about using
“institutionally” provided day care were prevalent. Local families preferred to use in-home childcare provided by friends or relatives. These perceptions and preferences, coupled with poor administrative practices, caused the center to struggle continually to meet its financial obligations.
IM A EDUCAT IONAL CASE JOURNAL
Sandra Weber
Truman State University
Appaloosa County Day Care Center, Inc.
Kristen Irwin
Truman State University
Debra Kerby
Truman State University
Background
ACDC was almost forced to close its doors on more than one occasion. The financial performance of ACDC is not unusual, as many community-based day care facilities struggle to remain open.
The Appaloosa County Day Care Center, Inc. (ACDC) began operations in a vacant warehouse retrofitted with bathrooms and kitchen facilities. ACDC’s mission is to provide quality, affordable childcare to the residents of the community and surrounding area. The service area is a rural, economically depressed county that continually ranks in the lowest 10 percent of per-capita income in the state.
The organization’s seven-member board of directors is comprised of volunteer representatives from various agencies throughout the community–the school district, community college, hospital, Department of Human Services, etc.
The board members bring a breadth of human services experience to the oversight of the day care, but most do not possess an accounting or financial background. While they were committed to the financial viability of the day care, they initially focused on the center’s mission–to provide affordable childcare to working-class families. As a result, the board set childcare rates to achieve their goal of affordability rather than assuring adequate revenues to provide highquality services while reaching breakeven points.
From its founding, the center faced another significant challenge. The center was the first of its kind in the community, so negative perceptions about using
“institutionally” provided day care were prevalent. Local families preferred to use in-home childcare provided by friends or relatives. These perceptions and preferences, coupled with poor administrative practices, caused the center to struggle continually to meet its financial obligations.
IM A EDUCAT IONAL CASE JOURNAL
Sandra Weber
Truman State University