Professional Documents
Culture Documents
Day Care Centers is a service available to children who are away from their own
homes for a part of the day. Generally parents seek substitute care for reasons of employment.
The life of day has become extensively busy, so in this busy life people are left with very
little time to give to their children. Need for day care centers increase as more and more
mothers of pre-school age children are forced to find jobs outside the home, which means
mothers who might ordinarily stay at home and care for their own children must seek income
to help make ends meet.
The main purpose of day care centers is to provide facility to those parents who
are very busy in there professional life and they can not take of there children’s. So what they
do is that they go to those day care centers and leave their children’s there, and themselves go
to their work and when they get free from their work, they pick their children’s and go home.
A day care center is an institution where people leave their children’s there. And
these day care centers look after those children’s. They provide those children’s with every
facility they require, they give them toy’s to play with, they feed them, they even give them
activities like building blocks, working with alphabets, teaching them basic
languages(depending on the age).
A day care center is one of earliest institution for children’s and plays a very
important role in children’s mental, physical development and determining his future. So in
order to manage a day care center, there are certain requirements set by Government of very
country which need to be met before it is allowed to operate. Some of basic requirements of
day care centers are as following:
1. License from the government is needed.
6. Sports equipment.
7. Health requirements.
8. The center should maintain all areas of facilities in clean, safe condition free
hazards to the health and safety of the children.
9. Center shall ensure that all structures, fences, equipment and grounds are
maintained.
10. A Center shall ensure that each child, except school-age children who do not sleep
at the Center, has clean, age-appropriate individual rest equipment such as a crib,
playpen, cot, bed or mat and bedding.
Maintaining Accounts
Charts of accounts
“A Chart of accounts is a list of all accounts tracked by a single accounting system, and
should be designed to capture financial information to make good financial decisions.”
Each account in the chart is assigned a unique identifier, typically an account number. Each
account in the Anglo-Saxon chart is classified into one of these five categories:
1) Assets 2) Liabilities 3) Equity 4) Income 5) Expenses.
Account Order
Assets
Assets are the tangible items an organization has as resources, including cash,
accounts receivable, equipment and property. Assets are usually listed in descending
order of liquidity. This means that cash and other assets which are easily converted to
cash are listed first, and fixed assets such as property and equipment are listed last.
Asset accounts usually start with the number "1."
Liabilities
Liabilities are obligations due to creditors, such as loans and accounts payable.
Current liabilities, those obligations which fall due within the next year, are usually
listed first, followed by long-term liabilities. Accounts payable and payroll taxes
payable are usually listed before other payables. Deferred revenue and other liabilities
are often further down on the list. Liabilities often begin with the number "2."
Net assets, formerly referred to as the fund balance(s), reflect the financial worth of
the organization. They represent the balance remaining after obligations are subtracted
from an organization’s assets. Organizations which only receive unrestricted gifts will
have only one net asset account. Those with temporarily or permanently restricted net
assets, such as endowments will have more than one net asset account. Net asset
accounts begin with the number "3."
Note that the chart of accounts lists the accounts that are available for recording
transactions. In keeping with the double-entry system of accounting, a minimum of
two accounts is needed for every transaction--at least one account is debited and at
least one account is credited. Though this is not needed when you are using some
accounting software as they do the 2nd step automatically by themselves.
Day Care Center – Chart of Accounts
Most of Day care centers working in Pakistan non-profit type of organizations. There do exists a good
number of day care centers which are run for profit purpose but since most of them are of non-profit
type so the chart of accounts we are presenting here is of non-profit day care center. Chart of accounts
for a non-profit organization is quite different from profit based organizations. Chart of Accounts of
non-profits are also called UCOA (Unified chart of accounts). These were prepared by CAN and
NCCS.
In below is given a sample chart of accounts for a small non-profit day care center. Balance amounts
are not given since they are usually kept confidential. Title of different accounts along with their class
type and identifying number are given as they appear in chart of accounts.
NOTES
There may be number of titles\terms you might have come across for the first time while observing
chart of accounts (chart of accounts for non-profits to be specific). In below we have done an effort to
make you understand those new terms by giving little descriptions of them and how they work in
accounting system.
UCOA© is the Unified Chart of Accounts for nonprofit organizations that was developed by the
California Association of Nonprofits (CAN) and the National Center for Charitable Statistics (NCCS).
This standardized chart of accounts was designed so that nonprofits can quickly and reliably translate
financial statements into the categories required by IRS Form 990, the Federal Office of Management
and Budget, and other standard reporting formats. UCOA also seeks to promote uniform accounting
practices throughout the nonprofit sector. UCOA was developed by a consortium of various nonprofit
organizations.
PETTY Cash
Physical cash retained by an entity in order to pay for small items of goods and services.
Unrestricted NET ASSETS
The part of net assets of a not-for-profit organization that is neither permanently restricted nor
temporarily restricted by donor-imposed stipulations. Unrestricted support, Revenues or gains from
contributions that are not restricted by donors. See also restricted support.
Donor-imposed Restriction
A donor stipulation that specifies a use for the contributed asset that is more specific than broad limits
resulting from the nature of the organization, the environment in which it operates, and the purposes
specified in its articles of incorporation or bylaws, or comparable documents for an unincorporated
association. A restriction on an organization's use of the asset contributed may be temporary or
permanent.
Resources whose use is restricted by donors as contrasted with those over which the organization has
complete control and discretion. Restricted net assets may be permanently or temporarily restricted.
PERMANENT Restriction
A donor-imposed restriction which stipulates that resources be maintained permanently but permits
the organization to use up or expend part or all of the income (or other economic benefits) derived
from the donated assets.
The part of the net assets of a not-for-profit organization resulting from (a) contributions and other
inflows of assets whose use by the organization is limited by donor-imposed stipulations that neither
expire by passage of time nor can be fulfilled or otherwise removed by actions of the organization, (b)
other asset enhancements and diminishments subject to the same kinds of stipulations, and (c)
reclassifications from (or to) other classes of net assets as a consequence of donor-imposed
stipulations.
TEMPORARY Restriction
A donor-imposed restriction that permits the donor organization to use up or expend the donated
assets as specified and is satisfied either by the passage of time or by actions of the organization.
The part of the net assets of a not-for-profit organization resulting from (a) contributions and other
inflows of assets whose use by the organization is limited by donor-imposed stipulations that either
expire by the passage of time or can be fulfilled and removed by actions of the organization pursuant
to those stipulations, (b) other asset enhancements and diminishments subject to the same kinds of
stipulations, and (c) reclassifications to (or from) other classes of net assets as a consequence of
donor-imposed stipulations, their expiration by passage of time, or their fulfillment and removal by
actions of the organization pursuant to those stipulations.