Each payment is made up of an advance for the next 4 months and a ‘wash-up payment’ for the previous 4 months.

Advance funding

ECE services receive an advance for 4 months. Information on initial funding for new services can be found in Section 7-1 of this Handbook. The following section explains how the advance payment is calculated.

Section 7-1

Stage 1

ECE service completes an RS7 Return with:

• the number of funded child hours per day for the previous 4 actual months
• the expected number of days of operation for the coming 4 months

For more information on completing your RS7 Return, please see Chapter 9 of this Handbook.

Chapter 9

Stage 2

The Ministry uses the RS7 Return data to calculate the average number of funded child hours (FCHs) per day over the previous 4 months for each type of FCH – Under 2, 2 and Over, 20 Hours ECE and Plus 10 ECE.

Stage 3

The Ministry multiplies the average number of each FCHs per day by the number of days the service expects to be open over the coming 4 months.

Stage 4

The Ministry multiplies the average FCHs for the coming 4 months by the service’s funding rate.

Stage 5

75% of this total is paid as the advance payment (or 100% for kindergartens).

Advance funding exceptions

Playcentres choosing to take up 20 Hours ECE cannot claim initial advance funding for 20 Hours ECE.

Wash-up funding

ECE services also receive a wash-up payment. The wash-up payment makes up the difference between the advance payment made in the previous funding payment and the actual funding entitlement.

• If the predicted average number of FCHs was more than the actual average number of FCHs, or the service’s funding rate has decreased, then the Ministry deducts the overpaid amount from the next future payment.
• If the predicted average number of FCHs was less than the actual average number of FCHs, or the service’s funding rate has increased, the Ministry pays the extra amount with the wash-up payment.

Actual funding entitlement

A service’s ‘actual funding entitlement’ is the amount the service is actually paid in a funding round:

advance funding ± wash-up funding = actual entitlement.

Service providers

If a service provider operates a number of services, the total funding for all those services is paid to the service provider.

Payment to individual services is the responsibility of the service provider.

Funding cycle

Funding is paid 3 times a year, on the first working day of the following months.

March

This payment is made up of the advance for March, April, May, June, and wash-up for October, November, December and January.

July

This payment is made up of the advance for July, August, September, October, and wash-up for February, March, April and May.

November

This payment is made up of the advance for November, December, January, February, and wash-up for June, July, August and September.

'Gap' months

Processing time means it is not possible to collect FCH figures for the month prior to each funding payment. Although the advance has been paid, there will be a delay before the wash-up payment is made for February, June and October. These months are known as the ‘gap’ months at the time of processing.

Use the table above to find out when the wash-up payment for February, June or October will be paid.

Enquiries regarding the bulk funding payment

Due to privacy laws and difficulties verifying the identity of the person calling, the Ministry of Education is no longer able to provide payment totals in advance over the telephone or via email.

Advice notices are available to services on the payment date. Services who have access to the Secure Data Portal can download and print their notices via the Secure Data Portal from the day of payment. Notices are available on the Secure Data Portal for a limited time only.