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 – New Zealand 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 more 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
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Targeted FundingTargeted Funding must be used to improve the early learning experiences of children/tamariki early learning services consider to be from disadvantaged backgrounds.
Guidelines for Targeted FundingServices must use Targeted Funding in line with the requirements specified in the Targeted Funding Guidelines.
The Ministry has identified four areas for spending:
Working with families/whānau - To extend relationships with families and whānau to support learning and development in t…
This appendix contains resources and examples referred to in this Handbook.
The tables below contain a list of all the resources and examples in this appendix.
Resources for all Services
For more details see...
Enrolment Agreement Template
6-1
Sign in/Sign out Template
6-3
Resources for teacher-led services
For more details see...
Example Staff Record
3-B-2
Example Hospital Based Attendance Record for Enrolled Children
3-B-3
Staff Record Verification Sheet Template
3-B-2
Example Funding…
If the results of a funding claim audit and/or reporting on an RS7 Return and/or RS3 Initial Application for Funding for an Early Childhood Service forms indicate that the amount of funding provided is greater than it should have been, the amount of the over funding will be:
repayable by the service to the Ministry of Education on request and
treated as a debt which the Ministry can offset against all or any funding sums payable by the Ministry to the service provider.
When a service has recei…
This is the date from which the change of circumstances takes effect. For example, the date on which the service begins offering 20 Hours ECE, or the date on which the licensed maximum number of children increased.
Throughout this section there are examples of two services calculating their ECE Funding Subsidy.
Kowhai Street Childcare Centre is an all-day service.
Huia Playcentre is a sessional service.
Throughout this section there are examples of two services calculating their 20 Hours ECE funding.
Kowhai Street Childcare Centre is an all-day service.
James Cook Kindergarten is a sessional service.
Use the table below to find other information referred to in this section:
TopicSection
Certificated teachers
3-B-2
Certificated Teacher Hours
3-B-2
Certificated (ratio) staff
3-B-2
Staff Record
3-B-2
Example Staff Record
Appendix 2
A fee is a payment that is required as a condition of enrolment and can be enforced. It excludes home-based educator top up payments but includes any other compulsory payment regardless of the type: wages, salary or any other payments made by the parents /caregiver to either the educator or the service provider
Enforcement is when a service or educator withholds or withdraws enrolment, withholds or withdraws parts of their service (for example children not permitted to take part in certain acti…
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 c…
Collection of attendance and enrolment information as a condition of fundingIt is a condition of funding that every service provider of a licensed early childhood service must provide the information listed in this chapter to the Ministry of Education, at the frequency specified, through the ELI system or any alternative method the service provider is authorised by the Ministry to use, to enable the Secretary for Education or the Minister of Education to exercise their powers or carry out their…
81% to 100% immersion:
Te reo Māori is the principal language of communication and instruction with mokopuna used 81% or more of the time, including in the implementation of the curriculum.
It is expected that mokopuna in the service can interact freely in te reo Māori, without instruction.
51% to 80% bilingual:
Te reo Māori is used at least 51% of the time as the language of communication and instruction with mokopuna, including in the implementation of the curriculum.
English is accepted as…
The RS3 Initial Application for Funding for an Early Childhood Service (RS3 Form) is the key funding form for new services.
New services must complete the RS3 Form to receive their first ECE Funding Subsidy entitlement.
An example RS3 form can be found in Appendix 2
81% to 100% immersion:
A single Pacific language is the principal language of communication and instruction with children used 81% or more of the time, including in the implementation of the curriculum
It is expected that children in the service can interact freely in the Pacific language of the service, without direction.
51% to 80% bilingual:
A single Pacific language is used at least 51% of the time as the language of communication and instruction with children, including in the implementa…
The funding rates are made up of basic and variable components.
The basic component reflects standard operating costs for all ECE services, for example:
administration costs
educational resources
professional services (e.g. ICANZ accountants)
utilities (electricity and telephone).
The variable component provides a subsidy for the main categories of ‘cost- drivers’ that differ between ECE service types. For example, the variable component recognises that:
all-day services face higher costs tha…
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…
The following are examples of emergencies where funding will continue:
extreme weather conditions
interruptions to essential services
non-controllable health and safety issues
civil defence emergencies.
Every permanent certificated kaiako employed by and teaching in a licensed service that receives Waha Rumaki is eligible for this allowance.
The allowance is irrespective of the language competency of individual certificated kaiako or mokopuna attending the service.
Certificated kaiako are eligible to receive their allowance while on paid leave for their usual days worked.
If a certificated kaiako is on extended leave without pay for their usual days worked, they cannot claim the allowance du…
There is a maximum of 22 operational days in September.
The Anniversary Day Holiday for Huia Playcentre and Kowhai Street Childcare Centre’s region is on September 27. The services cannot claim advance funding for this day.
Huia Playcentre is a sessional service. They claim 21 days advance funding in the Sessional column.
Kowhai Street Childcare Centre operates all-day on Monday, Wednesday and Friday, and Tuesday and Thursday as sessional. They claim 12 days in the all-day column, and 9 days…
Use the key below to understand the shading and letters used in the example:
Days the child was not enrolled to attend.
Days the child was enrolled to attend.
Days the child attended their normal enrolled hours.
Days the child was enrolled to attend and was absent.
Kristen is enrolled to attend an early childhood service five days a week.
Below is the August attendance register for Kristen:
The Frequent Absence problem is...The early childhood service must...Funding may be claimed for...Funding may not be claimed for...
Kristen was absent for more than half of the Fridays in August.
monitor Kristen’s attendance in September and if Kristen is absent for more than half of the Fridays in September, her enrolment agreement will need to be reconfirmed at the…
