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Ministry of Education New Zealand
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It explains:

  • the RS3 Initial Application for Funding for an Early Childhood Service
  • the funding process for new services
  • when new services can expect their first funding payment.

RS3 form

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.

Appendix 2

Funding process

This describes the funding process for newly licensed services:

  1. The new service is licensed.

  2. The new service completes the RS3 form.

  3. The new service returns the RS3 form to their Ministry regional office.

  4. The Ministry calculates the service’s first payment based on:
    • the number of days the service will be open and
    • the funded hours that the service will be open and
    • the average number of children in each age group and the hours they are expected to attend the service during the advance period and
    • the estimated % of regulated (ratio) staff hours that will be covered by certificated teachers and whether a service attests to paying at or above certain minimum salary levels (education and care services, hospital-based services only).

  5. The Ministry makes an advance payment to the new service on the next available payment date.

  6. The service becomes part of the normal funding cycle. Funding continues as for all services (see section 2-5 for more details).

    Section 2-5

Bank account details

Every funded service must have a bank account into which ECE funding can be paid.

The bank account number must be verified by:

  • 2 signatories on the RS3 form and
  • a bank verification stamp on the RS3 form or
  • attaching a pre-printed bank deposit slip to the RS3 form or
  • attaching a document printed on bank letterhead, with the bank account number visible, to the RS3 form.

Service providers

If a service provider operates more than one service, funding for all services will be paid to the bank account of the service provider.

All funding correspondence will be sent to the funding contact person for the service provider.

Services affiliated to a school

New services that are affiliated to, or located on the grounds of, a state or integrated school must ensure they are a separate legal entity, and have a separate management structure and bank account to that of the school.

Boards of trustees of state or integrated schools wishing to open an early childhood education (ECE) service must establish a separate legal entity for the ECE service.

Tip

A good business practice for community groups wanting to start a new ECE service (e.g. a university or church) is to open a separate bank account for the ECE service.

This keeps the financial records of the community group and the ECE service separate.

First payment 

New services are eligible for funding from the day that they are licensed and operating.

To find out when you will receive your first payment, please contact your Ministry regional office.

Regional offices

Services should budget to ensure funds are available to cover the period between starting to operate and receiving their first payment.

Warning: to avoid overpayment of funding

The Ministry retains the right to reduce any advance funding due to be paid to you where it deems the claimed numbers on the RS3 to be over-estimated.

The Ministry retains the right to request proof and evidence to support the numbers claimed on the RS3 form.

Any overpayments that occur due to over-claims on this RS3 form are repayable to the Ministry immediately.