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

12-3 Reporting requirements for targeted funding

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  • Introduction
    • Each service’s annual audited general purpose financial statements or special purpose financial report must include information about ‘targeted funding’ the service has received.

      Targeted funding includes:

      • Equity funding
      • Annual Top-Up for Isolated Services (ATIS)
      • Targeted Funding for Disadvantage

      For further information on these funding types, see Chapters 510 and 13 of this Handbook.

  • Equity funding
    • Services must report directly to parents and the local community on how they spend their equity funding.

      The reporting mechanism may be decided at the discretion of individual services (or the service provider). Each service must include the following information in their annual audited general purpose financial statements or special purpose financial report:

      • an outline of the amount received under each component of equity funding
      • a brief description of what the funding was spent on
      • a brief outline of the reasons for spending the equity funding in that way.
  • Annual Top Up for Isolated Services
    • The value of the ATIS should be included in the service’s general purpose financial statements or special purpose financial reports as part of reporting on the ECE Funding Subsidy.

  • Targeted Funding for Disadvantage
    • Each year, services must report to the Ministry on their use of Targeted Funding and how the funding benefited children/tamariki from disadvantaged backgrounds.

      A reporting template is available in Appendix Two. This must be submitted in February each year for the funding received for the previous calendar year. Details on how Targeted Funding was used must be provided at the individual service level and specify:

      • Total amount of Targeted Funding received
      • Key objectives for Targeted Funding
      • How Targeted Funding was spent
      • How Targeted Funding benefited the children within the service

      Note that the due date for the Targeted Funding report is different to the due date for general and special purpose financial reports.