1 Discount Policy/ Report Training 8767 E. Via de Ventura Blvd. Scottsdale, AZ Wednesday January 14, 2009 January 2009

2 Discounts Overview Discount Policies by School Discount Exception Reports Discounts Data Clean Up Agenda

3 Discounts add up to a significant percentage off of gross tuition revenue each year Discounts account for approximately 9% of gross tuition revenue, or approximately $9 million per year Financial Impact of Discounts Discounts

4 Discounts Overview Discount Policies by School Discount Exception Reports Discounts Data Clean Up Agenda

5 What are our Discount Policies? Discount Type: Employee Enrollment Date: For kids enrolled prior to January 1, 2009

6 What are our Discount Policies? Discount Type: Employee Enrollment Date: For kids enrolled after January 1, 2009 Toddlers (or 1 st priced group) All Other Ages (including multiple children) B&A Elementary Assistant and Center Directors 0% 50% 50% (only for full- time employees in the elementary school) 100% Discount

7 What are our Discount Policies? Discount Type: Sibling Enrollment Date: For kids enrolled prior to September 1, 2008 Discount Type: Sibling Enrollment Date: For kids enrolled after September 1, % Discount % applies ONLY to families with 2 or more kids enrolled  For families with at least 1 kid in full-time programs, discount % applies to the oldest kid enrolled  For families with all kids in part-time programs (B&A, Drop-In, Summer, Winter), the discount % applies to the kid with the minimum tuition per week

8 What are our Discount Policies? Discount Type: Vacation Enrollment Date: For kids enrolled prior to September 1, 2008 Discount Type: Vacation Enrollment Date: For kids enrolled after September 1, days per year Every kid in a FULL-TIME program is entitled to a specific number of vacation days in a year Vacation days are calculated YTD from September 1 – August 31 Kids in part-time programs are NOT entitled to vacation discounts The number of days is not pro-rated and hence, does not depend on the date of enrollment of the kid

9 Discounts Overview Discount Policies by School Discount Exception Reports Discounts Data Clean Up Agenda

10 Introduction to the Mini-Skool Discount Exception Reports Mini-Skool management has developed a new Center-level discount report  Gathered Center-level data from ProCare  Gathered policies from different schools  Created a non-compliance report for employee, sibling and vacation discounts by parent The discount exception reports were developed to eliminate non- compliance with existing policies Each Center’s non-compliance report can be viewed each week Non-compliance arises due to various factors:  Wrong entries in ProCare  Confusion on policies  Inadequate attention to policy compliance

11 Example employee discount exception report The employee discount report uses data from ProCare and ADP (payroll) Unique Parent ID Indicates whether the employee is a Center Director or Assistant Director Total no of kids for whom tuition was recorded in the system during that week

12 Example employee discount exception report The employee discount report uses data from ProCare and ADP (payroll) Maximum no of kids in the system for any parent is 4 Child order is in the order of minimum tuition per kid for full-time programs followed by part-time programs Program that the kid is registered for Tuition amount recorded in ProCare Allowed discount % based on policy Allowed discount $ based on policy

13 Example employee discount exception report The employee discount report uses data from ProCare and ADP (payroll) Total $ discount allowed for all kids, based on policy $ Discount variation if taken discount is greater than allowed discount Was this employee discount non-compliant in the previous week? This shows non-compliance repeats Total $ tuition recorded in ProCare for all kids Total $ employee discount taken (GL code 41030) in ProCare

14 Example sibling discount exception report The sibling discount report uses data from ProCare Center information for each parent Unique Parent ID Total no of kids for whom tuition was recorded in the system during that week

15 Example sibling discount exception report The sibling discount report uses data from ProCare Total tuition for all kids in the program in which the oldest kid is in Minimum tuition per kid if all kids are in part- time programs No of kids in the oldest kid’s program $ Tuition amount on which the discount % will be applicable $ Allowed Discount based on applying allowed % to tuition $ Actual discount taken from ProCare $ Discount variation if taken discount is greater than allowed discount Was this employee discount non- compliant in the previous week? This shows non- compliance repeats

16 Example vacation discount exception and balance report The vacation discount report uses data from ProCare for parents with kids enrolled in the week No of days allowed based on number of full- time kids $ Allowed Discount based on tuition for the program by kid $ Actual YTD discount taken from ProCare $ Discount variation if taken discount is greater than allowed discount Does this parent have any vacation balance that he/ she can take anymore ? Unique Parent ID Total no of kids for whom tuition was recorded in the system during that week Calculate d no. of days taken $ Actual discount taken in the current week

17 How will this work? Discount exception reports will be uploaded on the admin site every Tuesday for the previous week Center Directors are responsible for reviewing the discount reports and fixing any non-compliance issues for Employee and Sibling discounts by 1/31/09

18 Discount Report Accuracy There are a few things that Center and Regional Directors can do to help ensure the reports are accurate for their Centers… 1. Surprise!! Back up your ProCare System daily. 2. Surprise again! Make sure the student information in ProCare is accurate, especially the student’s schedule and programs. 3. Help make sure all discount GL codes are entered correctly in ProCare for Employee Discount for Sibling Discount for Vacation Discount 4. Make sure that employee data is recorded correctly 5. Make sure that you understand the policies and only apply a discount in accordance with policy

19 Discounts Overview Discount Policies by School Discount Exception Reports Discounts Data Clean Up Agenda

20 Next Steps – Clean Up Employee Discount 1. Review the employee discount report for your center 2. Look at the non-compliant parents 3. Please communicate the right policy to the parents 4. Fix the discount amount for the non-compliant parents in ProCare 5. Complete the excel Discounts Clean Up sheet 1. For all parents, copy the parent IDs and other details into the excel sheet template 2. Record the discount amount that has been corrected in ProCare 6. Please send us the excel sheet with the records of changes made by January 31, We will then look at each school, to check whether non-compliance has been cleaned up

21 Next Steps – Clean Up Sibling Discount 1. Review the sibling discount report for your center 2. Look at the non-compliant parents 3. Please communicate the right policy to the parents 4. Fix the discount amount for the non-compliant parents in ProCare 5. Complete the excel Discounts Clean Up sheet 1. For all the parents, copy the parent IDs and other details into the excel sheet template 2. Record the fixed discount amount that has been recorded in ProCare 6. Please send us the excel sheet with the records of changes made by January 31, We will then look at each school, to check whether non-compliance has been cleaned up

22 Next Steps - Others Please keep your ProCare information updated Backup Enter accurate information Enter the right GL codes for the discounts (do not put it under miscellaneous) Help us comply with company policy Discount reports will be uploaded every Tuesday Regionals will work with Centers to eliminate non- compliance Vacation balances will be continuously monitored before awarding further vacation discounts Our goal is to reduce discount non-compliance Discount Reports ProCare

23 Q&A For questions after this session please contact Brian Wright, COO