2.1 General Operating Grant

POLICY

The Manitoulin-Sudbury DSB will administer a General Operating Grant, with Local Priorities Funds within the Ontario Child Care and Early Years Funding Guidelines and the established Manitoulin-Sudbury DSB policy and procedures. Funding will support children aged 6-12. 

Approved non-profit child care service providers have the discretion to use the operating grant for expenses which include, but are not limited to, staff wages and benefits, lease and occupancy costs, utilities, administration, transportation for children, resources, nutrition, supplies, and maintenance. 

Any in-year child care funding surpluses will be used to address existing general operating expense pressures throughout the Manitoulin-Sudbury DSB jurisdiction. The Manitoulin-Sudbury DSB may, in-year, move dollars in order to meet Local Priorities within the Ontario Child Care and Early Years Funding Guidelines.

PROCEDURE

The Manitoulin Sudbury DSB will calculate General Operating Grants based on a rate per space per child, determined according to the center’s license capacity. The rate is subject to adjustment based on actual occupancy and financial pressures, allowing for greater flexibility in resource allocation to support service targets. 

General Operating Grants will be calculated based on the following: 

Rate per Space and Age Group: Grants will be calculated at a fixed rate per space for each age group (6-12 years), and the centre’s licensed capacity. The funding provided will reflect the full cost attributed to each age group and will be multiplied by the number of children in that category per the licensed capacity. 

Annual costs will be attributed to each child age category (6-12 years) and set using the universal rates established by the DSB. The funding provided will reflect the full annual cost attributed to each age category, multiplied by the number of children in that age category as per the centre’s license capacity.

The Manitoulin Sudbury DSB reserves the right to adjust the calculation based on the actual child occupancy, subject to funding pressures and service targets.

Example Calculation of Operating Grant:

Accountability:

The Manitoulin-Sudbury DSB as an approved child care delivery agent shall monitor and reconcile General Operating Grants with service providers annually, recover funds as necessary to meet service targets, and maintain a record of general operating expense pressures. 

Service providers shall:

• If an operator of a child care program sells to another, the existing general operating expense grant is to be returned to the DSB.
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• Should the DSB approve a new operator that has purchased a previously approved operator, a funding adjustment shall be made if the transfer to the new operator results in an overall reduction of service capacity. If funding is available, a funding adjustment shall be made if there is an increase in service capacity.

Service providers that down-size a child care program shall:

• Immediately notify the DSB and the general operating expense grant may be adjusted accordingly.

Service providers shall:

• By means of a special purpose report reconcile the general operating grant against actual expenditures. The special purpose report requires a third party audit to verify that the general operating grant has been used for the purpose(s) intended. Service providers shall submit separate audited financial statements where the funding is $20,000 or greater. 

Service Data Elements

As a minimum, child care service providers are required to report the following on an annual basis. 

• Audited financial statements. 
• Operating budgets presented to their board or governance structure.
• Operating Budget Form supplied by the DSB.
• Monthly enrollment statistics