Kids' Country finally filed its tax return for last year and it lost a staggering amount of money. For the year ended June 30, 2010, KC lost more than $742,000!
KC's revenues actually increased slightly over the previous year, from $5.85 million to $6.00 million. But, its expenses went up inexplicably from $5.98 million to $ 6.75 million.
How can KC be losing this much money?? And what are they spending it on??
For anyone who is interested in the details, KC's tax returns for the past several years can be found on the Foundation Center's website (just Google "FoundationCenter.org" and search under KC's official name, "San Ramon Valley School Age Child Care Alliance"), or by following this link to the most recent tax return:
The tax return shows that KC had to use up a significant amount of its cash reserves to cover this loss. One more year in the red like this and it look like KC could entirely deplete its reserves.
Curiously, Chris Erbe (KC's Executive Director), sent out a letter to parents on March 4, in which he announced a 9% increase for next year in rates charged to parents. He said that KC employees had not seen an increase in wages since 2008. However, what Mr. Erbe didn't mention in the letter is that he got a nice raise last year!
And if employees haven't gotten a raise since 2008, how did KC's spending on wages and salaries for employees (including management) go up by $278,000 in one year???
Something is not right at Kids' Country. The School District and the parents need to look into it.