ECE Funding Handbook

Welcome to the ECE Funding Handbook. This handbook is issued under section 548(5) of the Education and Training Act 2020.

Funding of certain services and certified playgroups – NZ Legislation(external link)

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' of everything you need to know about early childhood funding, including:

  • the ECE Funding Subsidy
  • 20 Hours ECE funding
  • equity funding
  • the annual top-up for isolated services

This information does not apply to certificated playgroups

The information in the Funding Handbook does not apply to certificated playgroups.

These services should contact their Ministry regional office for further information.

Local Ministry offices

Download the ECE Funding Handbook

If you would like to print a 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

12-2 Types of financial reports

A Symbol Books Clipboard

  • Introduction

    • The type of financial report that must be supplied to the Ministry depends on the ownership structure of the service.

      This section explains:

      • the difference between general purpose financial statements and a special purpose financial report
      • how to decide if your service should provide general purpose financial statements or a special purpose financial report
      • consolidated reporting, if your service is one which is grouped into a service provider (for funding purposes), or you are a licensee of more than one service.
  • Financial information required

    • Use this table to find out if your service should provide general purpose financial statements or a special purpose financial report:

      If your service is...you...
      A community-based service, for example an incorporated society, a charitable trust, a registered charity, owned by a community organisation, or considered a Public Benefit Entity under XRB requirements  must provide general purpose financial statements.
      A private service, for example a partnership, sole trader, or limited liability company  can choose to provide either general purpose financial statements or a special purpose financial report.

      NOTE: Where a service meets both definitions, general purpose financial reports are required.

      Definitions of community-based and private services are available in the Glossary.

  • General purpose financial reports

    • A general purpose financial report should include:

      • a statement of accounting policies
      • a statement of financial performance (profit and loss account) that includes specific reference to the funding received from the Ministry of Education (including the ECE Funding Subsidy, 20 Hours ECE funding and ‘targeted’ funding such as Equity Funding and Targeted Funding for Disadvantage)
      • a statement of financial position (balance sheet)
      • a statement of movements in equity
      • the notes to the financial statement should state how each type of funding has been spent (if a service has received more than one type of funding).

      Services receiving the Annual Top-Up for Isolated Services (ATIS) must report this as part of their income. They do not need to report how it was spent.

  • Special purpose financial statements

    • A special purpose financial statement should include:

      • a statement of accounting policies
      • details of the amount of funding received from the Ministry of Education (including the ECE Funding Subsidy, 20 Hours ECE funding and ‘targeted’ funding such as Equity Funding, ATIS and Targeted Funding for Disadvantage)
      • information on how the funding has been spent.

      Services receiving the Annual Top-Up for Isolated Services (ATIS) must report this as part of their income. They do not need to report how it was spent.

  • Consolidated reports for service providers

    • Some reporting areas of general purpose financial statements and special purpose audit reports can be consolidated for services that are grouped into a service provider for funding purposes.

      The table below outlines the reporting areas that can be consolidated and those that must be itemised (i.e. reported individually for each service).

      Reporting areaType of service that must provide this informationReporting requirement for service providers and licensees of more than one service
      Statement of accounting policies All ECE services May be consolidated (i.e. one statement of accounting policies covering all services)
      Statement of financial performance (profit and loss account) All ECE services except privately owned services Must be itemised by service
      Statement of financial position (balance sheet) All ECE services except privately owned services Must be itemised by service
      Statement of movement in equity All ECE services except privately owned services Must be itemised by service
      Special purpose financial report Privately owned ECE services only Must be itemised by service
      Audit report prepared by a member of the New Zealand Institute of Chartered Accountants All ECE Services May be consolidated (i.e. one report covering all services)
  • Playcentres

    • Each Playcentre is required to send a copy of their audited financial statement of Receipts and Payments to the Ministry.

      In addition, each Playcentre Association is required to send a copy of their audited general purpose financial statements to the Ministry.