SUNDRE — Emergency government funding provided a life-sustaining boost that ensured the Sundre Daycare Centre was able to successfully navigate through a storm of financial uncertainty that was substantially exacerbated by the COVID-19 pandemic.
Following several years of attempting to restore order to its financial house, the non-profit’s board recently announced that the centre is now in a position to be debt free.
According to a report prepared by treasurer Kim Free and presented during the organization’s annual general meeting on Oct. 27, the centre’s total debt as of October 2019 was a little more than $46,300. That debt load was broken down to nearly $24,000 owed to the Canada Revenue Agency, about $20,150 in rent to the Town of Sundre, plus an additional roughly $2,260 on a credit card.
That accumulation of debt over time was attributed to a limited income from low enrolment combined with high expenses. But there were other contributing factors including an inexperienced board, the absence of professional bookkeeping and payroll, as well as a kitchen fire in 2017 compounded by insufficient insurance coverage, reads a portion of Free’s report.
“The staff and the board have (since) worked tirelessly to fundraise and cut costs, and bring in more funds through grants and such,” she said.
Although the centre was for a few months forced to close its doors due to the COVID-19 pandemic, she said the federal and provincial governments provided ample financial supports to small businesses in general, and childcare centres in particular.
“We received the Canada Emergency Bank Account (CEBA), which was a $40,000 loan, from the federal government. We need to pay back $30,000 of that. It’s my understanding that when we do that, we are able to keep $10,000 of it,” she said.
Asked whether the non-profit would be able to repay that federal loan by the Dec. 31, 2021 deadline, she said, “It’s sitting in the bank account. We can easily pay back that $30,000, I just haven’t got there yet.”
“I did call the bank to try to make arrangements to pay back that money, but they didn’t quite know how, because we were the first one to inquire about paying back that money,” she said with a laugh.
“The bank gave me a phone number to call, so it’s really just an administrative duty that I have to phone this number and pay back the money.”
Additionally, the Canada Emergency Wage Subsidy (CEWS) provided critical support to keep staff on the payroll, she said.
“Our income went way down when we didn’t have very many children attending throughout COVID. So, the federal government provided 75 per cent of our staff’s wages for several months, and that was substantial because we have six or seven staff at any one time.”
Since the CEWS is a subsidy, it does not need to be repaid.
“(And) because we’re a non-profit, we don’t have to pay taxes on those monies, which is really nice.”
Now that the daycare has steered its financial course into calmer waters, she said the board intends to plan ahead to ensure the centre’s long-term sustainability.
“We’ve implemented some systems and processes that will make sure that we don’t go down that road of debt again,” she said.
“The staff is really excited that they might get some new books and new furniture and little things like that. But we certainly aren’t going to go down the path of spending too much money.”
In further good news for the daycare, she added enrollment is higher than it has ever been.
According to the president’s report, prepared by Janelle Mikal, there were 36 registered families, representing a total of 49 children, as of October 2020, up significantly from 29 families in September 2017.
“The daycare has certainly grown over the past several years that I’ve been involved. When I first was bringing my daughter Piper, I would drop her off and there would be like two other kids. Now, the seats are full! It’s getting to the point where the daycare is almost taking a wait list,” said Free.
“I don’t think in the history of its existence, it’s ever been like that.”
She attributed that increase to improvements at the centre.
“We did a major renovation when we were closed because of COVID. Having a centre that is clean and fresh certainly can help draw in more families,” she said.
“Another reason that we think it’s improving, is we have a really solid staff right now. They’re excellent at working together, and it’s just such a positive environment that families tend to choose us when they’re looking for care.”
Following the annual general meeting, Free said a couple of directors planned to step down once replacements are trained and ready to step in. Kathy Kaiser, who was the fundraising lead for about a year, also stepped down.
“That position is currently open, so we’d love to have somebody help out with fundraising,” she said.
Mikal remains president, but is looking at perhaps stepping down in the spring, while Stan McNutt stayed on as vice-president and Monica Cameron as secretary. Free wanted to first finish the financial year as treasurer to complete this year's tax return before finding a replacement to take the reins.
While government loans and subsidies played a big role in righting the centre’s financial ship, Free also praised the Town of Sundre’s patience throughout the whole process.
“We had several meetings with members of the administration, and they were kind and understanding,” she said, recognizing they also had to remain strict with regards to the municipality’s repayment terms.
Additionally, she said Mountain View County continued to provide grant funding throughout the summer, which enabled the centre to take kids out on excursions.
“It was tricky to find places to take kids on field trips during COVID, but they worked with us on that one as well, and the kids had a blast.”
