ECE Funding Handbook

The purpose of a funding claim audit is to:

• verify that the service is claiming and receiving the correct amount of funding
• verify that a service is meeting the record keeping requirements
• provide advice and assistance to services about record keeping requirements.

You must supply the following documentation, for the period for which you are being audited, to the Ministry’s Resourcing Auditors as part of the funding claim audit:

• RS7 Return
• Attendance Registers
• Enrolment Records
• Staffing Records
• Copies of practising certificates and Early Childhood qualifications (Teacher-Led services only)
• Copies of New Zealand primary teacher qualifications (Teacher-Led services only)
• Copies of overseas qualifications and the NZQA assessment of those qualifications (Teacher-Led services only)
• Copies of the letter of registration with an ECE or primary endorsement from the New Zealand Teaching Council (Teacher-Led services only)
• Completed EC12 and EC13 Forms
• Audited general purpose financial statements or special purpose financial report.
• Records that demonstrate the employment relationship and the pay rate of the employed certificated teacher (education and care services and hospital-based services only).

Services of all types will be audited to verify the accuracy of their funded child hour entitlement claims including record keeping requirements for 20 Hours ECE.

Services that are required to keep a Staff Hour Count (education and care services, hospital-based services and all-day kindergartens), will also be audited on:

• Certificated and Other Teacher Hour claims
• qualifications of certificated teachers

Education and care services and hospital-based services that attest to paying all employed certificated teachers at least the amount specified at Step 1 of the salary scale described in Section 3-B-2 must hold verification of this attestation. This must include copies of signed employment contracts, letter of appointment and letter(s) confirming changes in salaries paid to certificated teachers, including certificated relievers.

Education and care services that attest to paying all employed certificated teachers according to the criteria for the full salary scale described in Section 3-B-2 must hold verification of this attestation and evidence of the factors used to determine a teacher’s initial and current salary step. This must include copies of signed employment contracts, letter of appointment and letter(s) confirming changes in salaries paid to certificated teachers, including certificated relievers. It must also include evidence of service recognition, previous relevant work experience, salary progression and other factors used to determine a teacher’s initial and current salary step. See Section 3-B-2 for further information.

The Resourcing Auditor will write to your service before the visit takes place, advising the time of the visit and the documentation you will need to have available.

Funding claim audits of home-based care networks will take place in the area in which the network operates.

An audit of a centre will generally take a full day, although sometimes longer periods may be required. The Resourcing Auditor will need a quiet place in which to work and access to a staff member who can answer any questions that arise.

At the end of the visit the Resourcing Auditor will provide a verbal report of the findings to the licensee or the licensee’s authorised delegate.

A formal written report will be sent to the service provider contact person. This will usually be within two weeks of the audit.

If the audit determines the service has been incorrectly funded the service will have their funding adjusted in the next funding cycle.

Education and care services or hospital-based services who are found to have not met their attestation obligation for Step 1 of the salary scale described in Section 3-B-2 will have their funding adjusted to the applicable 0 – 24% base funding rate.

Education and care services or hospital-based services who are found to have not met their attestation obligation for Step 1 to 6 of the salary scale described in Section 3-B-2 will have their funding adjusted to the applicable base funding rate.

The following table details how the funding rate will be determined based on the salary requirements met by the service:

Education and care services or hospital-based services who are found to have not met their attestation obligation for Step 1 to 11 + Management of the salary scale described in Section 3-B-2 will have their funding adjusted.

The following table details how the funding rate will be determined based on the salary requirements met by the service: 

Any overpaid funding will be recovered in the next funding cycle.

The service provider contact person is able to appeal any audit findings in the report. The appeal must be filed within 20 working days of the receipt of the audit letter advising of the audit findings.

The letter of appeal should be addressed to the Manager, Monitoring, Resourcing Division, Ministry of Education.