ECE Funding Handbook

Welcome to the Early Childhood Funding Handbook. This Funding Handbook is issued under section 311(5) of the Education Act 1989. The funding paid to licensed services is paid subject to the terms and conditions set out under this Handbook and must be complied with. The terms used in this Handbook are based in the Education (Early Childhood Services) Regulations 2008.

This Handbook is designed to be a ‘one-stop-shop’ for all you need to know about early childhood funding, including:

  • the Early Childhood Education (ECE) Funding Subsidy
  • 20 Hours Early Childhood Education (ECE)
  • Equity Funding
  • the Annual Top-Up for Isolated Services

Note: The information in the Funding Handbook does not apply to certificated playgroups. These services should contact their Ministry regional office for further information.

Downloading the ECE Funding Handbook

If you want a printed copy of this handbook, refer to the list of downloads in the contents section where you will find downloadable PDF versions of each chapter.

ECE Funding Handbook downloads

Licensing Criteria Cover

12-1 Financial reporting: general information

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  • Introduction
    • A condition of funding is that services report annually to both the Ministry and community (parents, staff and whānau) on how the Ministry’s funding has been spent. Services should report on each category of funding received from the Ministry.

      Services may choose how they report to their community on the spending of this funding. This can be done by detailing the information in a newsletter, a notice displayed at the service or by publishing their annual financial reports.

      This information must be available at the service within 180 days of the end of the financial year.

  • Financial reports required by the Ministry
    • All services that have been in operation for a full financial year must provide the Ministry with copies of their audited financial reports. Community-based and private services have different reporting requirements. The types of financial reports required is outlined in 12-2: Types of Financial Reports.

      Services that have not completed a full financial year of operation do not have to provide audited financial reports.

  • When to send your financial report
    • Services have until 30 June each year to send the Ministry their audited financial reports for the previous financial year.

      The following table shows an example of financial years and when the information should be sent in.

      If your financial year was...You will need to send your financial information to the Ministry by
      1 April 2016 – 31 March 2017 June 2018
      1 July 2016 – 30 June 2017 June 2018
      1 October 2016 – 30 September 2017 June 2018
      1 January 2017 - 31 December 2017 June 2018
      1 April 2017 – 31 March 2018 June 2019
  • Warning
    • Your service may have their advance funding withheld if:

      • it misses the reporting deadline
      • financial reports are not audited or do not meet the audit requirements. Refer to Section 12-4.
      • audited financial reports do not meet the Ministry’s reporting requirements (e.g. equity funding has not been reported separately). Refer to Section 12-2.
  • Change in requirements from 1 January 2011
    • An income threshold for financial reporting is being introduced from 1 January 2011.

      For the purposes of the income threshold, ‘income’ is all funding received from the Ministry of Education (inclusive of GST).

      Services with an income of less than $80,000 will not have to provide audited financial reports. Services with an income of more than $80,000 will still have to provide audited financial reports.