EX101202-07anB

ITEM EX7 - ANNEX B

EXECUTIVE – 10 DECEMBER 2002

EARLY EDUCATION AND CHILDCARE DEVELOPMENTS

Wood Farm NNI Income and Expenditure - 45 Place Nursery

with higher staff salaries

	Year 1	Year 2	Year 3	Year 4	Year 5
Income

Full fees @ £135 (40)	£275,400	£289,170	£303,629	£318,810	£334,750
Full Fees @ £65 (5)	£16,575	£17,404	£18,274	£19,188	£20,147

Total Maximum Fee Income	£291,975	£306,574	£321,902	£337,998	£354,897


Reduced occupancy	£145,988	£107,301	£41,847	£33,800	£35,490

Budgeted Fee Income	£145,988	£199,273	£280,055	£304,198	£319,408

NNI Income	£121,995	£76,338	£22,167	0	0

*Budgeted Income*	£267,983	£275,611	£302,222	£304,198	£319,408


Expenditure

Salaries	£164,512	£195,110	£201,939	£209,007	£216,322
Salary On Costs	£31,257	£39,022	£40,388	£41,801	£43,264
Temporary Staff	£2,000	£2,070	£2,142	£2,217	£2,295
Food/Provisions	£10,000	£12,500	£14,500	£15,000	£15,450
Cleaning/hygiene	£2,500	£2,575	£2,652	£2,732	£2,814
Registration/Inspection	£121	£125	£128	£132	£136
Utilities	£4,500	£4,635	£4,774	£4,917	£5,065
Insurance	£1,000	£1,030	£1,061	£1,093	£1,126
Rates	£2,000	£2,060	£2,122	£2,185	£2,251
Phone	£1,000	£1,030	£1,061	£1,093	£1,126
Building Maintenance	£1,000	£1,030	£1,061	£1,093	£1,126
Consumables	£1,750	£3,000	£4,000	£4,500	£4,635
Renewal/Repl Of Equipment	£1,750	£1,803	£1,857	£1,912	£1,970
Print/Stat/Pub/Advert	£5,000	£3,500	£3,605	£3,713	£3,825
Training	£3,000	£3,090	£3,183	£3,278	£3,377
Recruitment	£4,500	£1,000	£1,030	£1,061	£1,093
Subscriptions	£500	£515	£530	£546	£563
Audit	£600	£618	£637	£656	£675
Equipment (Year 1)	£20,000

*Total Expenditure*	£256,990	£274,712	£286,670	£296,937	£307,110


Net Surplus/(Deficit)	£10,993	£899	£15,553	£7,261	£12,298

Wood Farm NNI – Financial Assumptions (45 Places)

1) Fees increase by 5% per annum

2) Occupancy Year 1 50%

Year 2 65%
Year 3 87%
Year 4 90%
Year 5 90%

3) Neighbourhood Nursery Initiative Revenue Support

Year 1 50% of running costs
Year 2 30% of running costs
Year 3 10% of running costs

But maximum of £5,000 per place created

4) Staff costs based upon Daycare Trust Consultants research and experience at Ace centre

5) Staff have 5 weeks holiday (average)

6) Salaries increase by 3.5% per annum

7) On costs 19% year 1 and 20% thereafter re National Insurance increase

8) Running costs based upon DfES publication " Building The Future – A guide to setting up a Neighbourhood Nursery" plus knowledge of existing day-care provision on LEA Nursery School Sites

9)Inflation rate of 3%

10) Food/provisions at approximately £2 per child per day – increases in line with increasing occupancy

11) Consumables increase in line with increasing occupancy

12) Printing/Stationery/Publicity/Advertising – costs higher in year 1

13) Recruitment costs higher in year 1

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