Financial Accountability Return Guide
The guide includes information on how early childhood education service providers can complete their annual financial accountability statement in accordance with the Early Childhood Outcomes grants programs Terms and Conditions and program guidelines.
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1. Financial Accountability Statement
The NSW Department of Education (the department) is committed to working with service providers to improve service accountability and to simplify grants administration through the Early Childhood Contract Management System (ECCMS).
This guide should be used in conjunction with the Financial Accountability - Information for Services page and the ECCMS Service Provider Guide (PDF 2.81 MB) (pages 63 to 66) which detail the steps for completing financial accountability statements through ECCMS.
1.1. Before you start
Visit the Early Childhood Education grants and funded programs webpages to review the relevant program guidelines before completing the financial accountability statement.
Please navigate to the relevant program guidance notes from Section 2 below to find information to assist you to complete financial accountability statement through ECCMS.
Services should also read the Financial Accountability – Information for Services for assistance with completing their financial accountability statements in ECCMS.
1.2. Complete the Financial Accountability Statement in ECCMS
Service providers are required to complete a separate financial accountability statement for each grant funding received, detailing how the funding was expended, including details of any unexpended funds. The financial accountability statement must be submitted through ECCMS.
If a service provider reports:
- an overall nil balance or deficit for each service/funding specification, no further action is required
- a surplus, please see the Management of surplus funds section.
See the Financial Accountability – Information for Services for instructions on how to locate the funding specification financial accountability statement in ECCMS.
The financial accountability statement must be for the end of the approved funded provider’s reporting year, i.e. financial or calendar.
1.3. Financial reporting requirements
Financial reporting requirements depend on whether the service provider is classified as a Tier 1 or Tier 2 organisation under NSW Fair Trading guidelines.
Some service providers may be classified as a registered charity with the Australian Charities and Not-for-profits Commission (ACNC). Requirements under Tier 1 and Tier 2 classifications are still applicable in this case.
Please refer to the tables below to determine Tier 1 or Tier 2 service providers to submit financial statements.
Note: Financial accountability requirements as per below table are mainly applicable for Start Strong for Community Preschool and Mobile Preschool Funding Program.
More detailed information on Tier 1 and Tier 2 organisations can be found on the NSW Fair Trading website.
| Tier 1 Service Providers | Accountability requirements |
|---|---|
|
|
| Tier 2 Service Providers | Accountability Requirements |
|---|---|
|
|
2. Start Strong for Community Preschools and Mobile Preschool Funding Programs
This section is relevant to Start Strong for Community Preschools and the Mobile Preschool Funding Program.
Visit Start Strong for Community Preschools and Mobile Preschool Funding Program web pages to access the guidelines.
Services can use the Start Strong for Community Preschools completed financial accountability example (PDF 550 KB) with hover over icons in this link for further assistance.
2.1. Part 1 – Fee Relief Payment
Part 1 – Fee Relief Payment should be completed before completing Part 2 – Program Payment.
2.1.1. Income Section
Fee Relief Payment
Fee Relief Payment amount is automatically pre-filled by ECCMS based on the total Fee Relief payments made to the service during the relevant reporting period.
Note: The 2023-2024 Start Strong for Community Preschools and Mobile Preschool Funding Program financial accountability statement captures Fee Relief payments made to services for the 2023-2024 financial year. Financial year reporting services should refer to Fee Relief Spending Rules from both the 2023 Start Strong for Community Preschools Program Guidelines and the 2024 Start Strong for Community Preschools Program Guidelines.
Reserved Fee Relief Funds
Before proceeding you first need to determine and calculate any reserved fee relief amount.
Reserved Fee Relief Funds are funds that were not allocated to an enrolment e.g. The service had fewer children enrolled than funding was provided for, or for enrolled children where families have claimed fee relief elsewhere. Services are required to reserve these fee relief funds until a new eligible enrolment claims fee relief at the service. The amount in this section is manually entered by the service, refer to the examples below.
The reserved fee relief amount can be determined by calculating the difference between funding provided by the department, and the actual number of families accessing fee relief at your service.
2.1.2. Calculate the Reserved Fee Relief amount
The examples below assume full funding of $4,220 per child.
Example 1
If the service was funded for 20 eligible children but only 18 accessed fee relief, funds for the remaining 2 children (2 x $4,220 = $8,440) must be reserved.
| Payment description | Amount |
|---|---|
Fee Relief payment received from the department (Equates to 20 eligible children funded - $84,400 ÷ $4,220 = 20) |
$84,400 |
No. of declarations received from eligible families accessing fee relief |
18 |
| Difference between number funded and number of families accessing fee relief (20 – 18 = 2) | 2 |
Value of difference to be reserved (2 x $4,220=$8,440) This is the reserved fee relief amount. Nothing else needs to be done with this amount on the financial accountability statement. This shows the department the amount of reserved fee relief funding held. The department will review the amount and arrange a refund. |
$8,440 |
Total Adjusted Income ($84,400 - $8,440 = $75,960) This is the amount of fee relief the service needs to acquit in the ‘Funding Used to reduce Fees/Expenditure’ section of the Financial Accountability Statement. |
$75,960 |
Note: Only enter the reserved fee relief amount, where funds were not allocated to an enrolment because the service had fewer children enrolled than funding was provided for, or for enrolled children where families have claimed fee relief elsewhere.
Example 2
If the service was funded for 20 eligible children but 22 accessed fee relief, funds for the extra 2 children (2 x -$4,220 = -$8,440) should be entered as a negative figure to demonstrate you passed on more fee relief than what was received. This negative figure will be the difference between the amount paid by the department and the total fee relief passed on to families.
This shows the department that a fee relief adjustment payment may be required.
Note: The negative figure does not impact the Total Adjusted Income calculation.
| Payment description | Amount |
|---|---|
Fee Relief payment from the department (Equates to 20 eligible children funded - 84,400 ÷ $4,220 = 20) |
$84,400 |
| No. of declarations received from eligible families claiming fee relief at the service | 22 |
| Difference between number funded and number of families accessing fee relief (20 – 22 = -2) | -2 |
Value of fee relief difference (2 x $4,220 = $8,440) – enter as a negative figure This is the amount of additional fee relief passed on to families. Nothing else needs to be done with this amount on the financial accountability statement. This shows the department that the service passed on more fee relief than what was received from the department. |
-$8,440 |
Total Adjusted Income This figure will remain the same. |
$84,400 |
Funding Used to Reduce Fees / Expenditure section should be the total of the amount the service received from the department, plus the additional amount passed on from the service’s retained profits. ($84,400 + $8,440 = $92,840 – This is the total amount of fee relief passed on to families) |
$92,840 |
Balance surplus or deficit ECCMS will calculate a deficit showing the amount of fee relief passed on from the service’s retained profits ($84,400 - $92,840 = -$8,440) |
-$8,440 |
Services may be eligible for a fee relief adjustment payment in 2024-2025 to address a 2023-2024 fee relief accrued deficit because of providing fee relief for enrolments than the service was initially funded for in 2023-2024. Refer to ‘Deficit Fee Relief Funds’ under ‘Fee Relief Payment’ in relevant Program Guidelines.
Note: If the service has already received an adjustment payment for a 2023-2024 fee relief shortfall, do not include the adjustment amount in the 2023-2024 financial accountability statement. The adjustment amount will be included in the 2024-2025 financial accountability statement.
Total Adjusted Income
Total Adjusted Income is an automatic calculation. It is the amount of the total Fee Relief Payments, less any Reserved Fee Relief Funds (not allocated to an enrolment) noted above.
| The calculation for Total Adjusted Income |
|---|
| Total Fee Relief Payments from the department |
| Less: Reserved Fee Relief (Quarantined) Funds |
| Equals: Total Adjusted Income available |
Total Adjusted Income is the amount of fee relief funds the service had available to use for the number of enrolments. This is the amount the service should show expenditure for in the ‘Funding Used to Reduce Fees/Expenditure section.
See Frequently asked questions section in the Financial Accountability - Information for Services and the Start Strong for Community Preschools Fee Relief Scenarios web pages for more information and assistance.
The service will need to clearly show the breakdown of actual fee reduction and additional charges provided to families.
2.1.3. Expenditure Section
Services are required to apply the Fee Relief Funding and follow the hierarchy in the Fee Relief Spending Rules under the program guidelines to:
- reduce the daily fees as much as possible for 600 hours per year of enrolment for eligible children accessing fee relief at the service, then
- reduce the cost of additional charges to families accessing fee relief at the service e.g. enrolment, administration, resources, excursions/incursions, building/garden maintenance etc., then
- if any surplus fee relief funds remain after applying in the order above, providers may then choose to:
- reduce the cost of enrolment above 600 hours per year (e.g. third day fees); or
- reduce the daily fee for 600 hours per year of enrolment for eligible children not accessing fee relief at the service, e.g. children of families with greatest need; or
- # reduce the service’s operating expenses per the Program Payment spending rules.
# Any remaining Fee Relief Payment funds used in line with the 2023 and 2024 Start Strong for Community Preschool Spending Rules for operating expenses
The amount entered in Part 1 – Fee Relief Payment Expenditure item iii) # above will be automatically deducted from Part 2 – Program Payment DoE Funds column operating expenses. This is because the service will be acquitting that amount already under Part 1 – Fee Relief Payment expenditure.
Only record amounts where Fee Relief Payment has been used to cover costs. Services should only record amounts where fee relief funds were actually used to cover the costs of what families would have normally been required to pay e.g. where fee relief funds were used to cover the cost of enrolment fees, administration fees, resources, excursions.
If families actually paid additional fees such as enrolment ‘gap’ fees, administration, 4th and 5th day fees, resources, excursions etc., do not record that amount in Part 1 – Fee Relief Payment.
Actual ‘gap’ payments paid by families are recorded in the Income section in Part 2 – Program Payment.
Simple rule: If families actually paid ‘gap’ fees, include this in Part 2 Program Payment section. If Fee Relief Payment funding was used to cover fees, and families did not pay, include the amount in Part 1 Fee Relief Payment section.
Services were required to complete a mandatory fee relief data collection in early 2024. The fee relief data collection required services to outline their fee relief usage throughout 2023 and identify an amount of reserved fee relief funds or deficit if any.
More information on the spending rules for Fee Relief Payment can be found under Program Requirements of the relevant program guidelines.
See Frequently asked questions section in the Financial Accountability - Information for Services web page for more information and assistance.
Fee Relief Declarations
Services must confirm that:
- fee relief in the form of a reduction to fees has been passed on to families
- signed fee relief declaration forms have been received for each child enrolled at the service where families have not claimed the fee relief at another service. This is applicable to Start Strong for Community Preschools program only.
For more information, please see Fee Relief Payment Spending Rules of the relevant program guidelines.
Note: Declaration forms related to fee relief funding are different to consent forms.
2.2. Part 2 – Program Payment
Download Expenditure Across all Programs Example (XSL 23 KB) to break up income and expenditure across all programs if not already presented on service financial statements.
There are two columns within the financial accountability statement where services are required to complete both income and expenditure as noted below: DoE (funding received from the department) and non-DoE (funding received from other sources - not from the Department of Education Early Childhood Grants and Funding Program).
| DoE Funds | Non-DoE Funds |
|---|---|
Includes:
|
Includes:
|
Key notes to consider
- Amounts noted on the financial accountability statement should clearly agree with the figures reported in the service’s audited/non-audited financial income and expenditure statements from your accountant or bookkeeper.
- There should be a clear breakdown of income and expenditure from all sources relative to the funding received.
- Services providers should consult with their accountant or bookkeeper if there is not an identifiable breakdown of grants and other income on their audited/non-audited financial income and expenditure statements.
- Where services receive multiple funding grants from the department e.g. Start Strong for Community Preschools / Mobile Preschool Program Payment and Fee Relief Payment, Disability and Inclusion funding, Quality and Participation funding etc., the income and expenditure amounts shown on your audited/non-audited financial income and expenditure statements from your accountant/bookkeeper are a combination of all grants / income streams and expenditure across all programs.
- Remember to extract the income and expenditure relative to each program, e.g. Disability and Inclusion Program funding, Start Strong for Community Preschool, Quality and Participation funding when completing your financial accountability statement.
- It is not correct to transpose the total line-item amount e.g. salaries and wages from the service’s audited/non-audited financial income and expenditure statements unless Start Strong for Community Preschools, Mobile Preschool Contracts or Mobile Preschool Funding Program grant funding is the only grant income the service received from the department.
2.2.1. Income Section
DoE Funds Column
This column includes the Start Strong for Community Preschools/Mobile Preschools Contracts/Mobile Preschool Funding Program funding provided by the department during the reporting period, which is automatically prefilled.
Note: No values are required for the greyed-out cells.
The final surplus noted in DoE Funds column on the previous year's financial accountability statement will be automatically carried forward to this current year’s financial accountability statement.
Non-DoE Funds Column
This column should only include funds received from sources other than the department.
Don’t include any other department grant funding amounts e.g. Free Relief Payments, Disability and Inclusion Program, Community Grants etc.
These grants will be acquitted on their own financial accountability statement.
Total Fee Income
Enter income received from families paying to use the early childhood education and care service. This is not Fee Relief Payment funding. It is the fee amount families actually paid after applying fee relief funds, i.e.,
- the gap payment if fee relief did not cover the total daily fee
- the amount for third day fees if the third day was not covered by fee relief.
The two amounts (fee relief income, and fees paid by families) should be shown separately on the service’s financial statements.
Note: Do not include other grant program funding e.g. Fee Relief Payment, Start Strong Free Preschool Disability and Inclusion Program, Quality and Participation or any other department grant funding under this section. These grants will be acquitted on their own financial accountability statement.
Grant funding from other sources
Enter any grant income received from other sources not provided by the Department of Education Early Childhood funding. This may include specific assistance funding from other NSW Government departments, local councils, commonwealth funding and local community associations etc e.g. landcare projects, water tanks, etc.
Sale of assets
Enter profit/gain from the sale of an asset that was purchased with department funding.
Other income
Enter other income as reported in the service’s audited/non-audited financial income and expenditure statements that is not acquitted elsewhere e.g. traineeship grants, paid parental leave payments or for older accountabilities, the JobKeeper and JobSeeker, Cashflow Boost payments.
Note: Do not include Fee Relief Payment funding or any other department grant funding under this section. These grants will be acquitted on their own financial accountability statement.
Surplus carried forward from prior years
Surplus funds in the DoE column on the previous year's financial accountability statement will be automatically transferred to the current year financial accountability statement.
Surplus funds noted in the Non-DoE column on the previous year's financial accountability statement should be manually entered on this current year financial accountability statement. Please don't enter a deficit amount.
Note: The surplus amounts noted on the financial accountability statement may differ from the service’s audited/non-audited financial income and expenditure statements, especially where the service has expenditure relative to multiple grant programs.
2.2.2. Expenditure Section
Expenditure should be divided between the two columns provided.
Please split and show expenditure relative to both DoE Funds and Non-DoE Funds in each column.
Note: You must enter values into each column. Please refer to the two guidance notes below:
- For some expenditure categories where splitting is difficult (such as 'Salaries and Wages'), a revenue % apportion basis can be used as a guide e.g. if the total income for DoE Funds is $60,000 and Non-DoE Funds is $40,000 totalling to $100,000 then 60% of expenditure can be apportioned to DoE Funds column and 40% to Non-DoE Funds column.
- If the Department of Education Early Childhood funding is the major funder e.g. if total income for DoE Funds is $90,000 and Non-DoE Funds is $10,000 totalling to $100,000, then expenditure should be shown first in the DoE Funds column bringing the balance to $0, and remaining expenditure shown under the Non-DoE Funds column.
Services that do not have an exact breakdown of the DoE and Non-DoE portions of their yearly expenditure can use the split outlined above and contact their accountant/bookkeeper to request the breakdown of each grant program for the income and expenditure sections in their financial statements.
Your accountant/bookkeeper can assist you to establish a costing structure to easily identify income and expenditure activity relating to each of your funding grants from the department. In some financial accounting systems this is called a ‘funding code’ or a ‘project number’ for each grant.
See more information in the Frequently asked questions section on the Financial Accountability – Information for Services webpage and the 2023 Start Strong for Community Preschool FAQs and the 2024 Start Strong for Community Preschool FAQs.
Salaries and wages
If services received funding for the Disability and Inclusion Program or the Start Strong Pathways Program for example, remember to first deduct wages paid to staff under these grants, from the total wages line-item on the service’s audited/non-audited financial income and expenditure statements from your accountant/bookkeeper.
Do this before entering any wages amounts into wages line items on the financial accountability statement.
Service delivery staff: Enter expenditure for staff directly involved in service delivery.
Administration and management staff: Enter expenditure for employees not directly involved with the service provision, such as administration, management, accounting, and co-ordination staff.
Use the guidance notes above to apportion the wages across the DoE Funds and Non-DoE Funds columns for both service delivery and administration and management staff.
Note: The total wages line item on the service’s audited/non-audited financial income and expenditure statements is a total of all wages paid using all sources of income.
It is not correct to transpose the total wages line-item amount on your financial statements unless Start Strong for Community Preschools, Mobile Preschool Contracts or Mobile Preschool Funding Program grant funding is the only grant income your service received from the department.
Traineeship and Paid Parental Leave Wages: If the service received Traineeship grants (through Training Services NSW) or Paid Parental Leave payments (through the Commonwealth Government) or previously JobKeeper and JobSeeker payments that were related to previous funding periods, the wages expenditure of these amounts should be noted against wages expenditure line items for service delivery staff or administration / management staff in the ‘Non-DoE Funds’ column. This is because these funds were received from other sources and not the NSW Department of Education Early Childhood funding grants.
Traineeship wages paid using the Grow Your Own funding grant should not be recorded on the Start Strong for Community Preschools/Mobile Preschool Funding Program financial accountability statement. Record these wages amounts on the Grow Your Own (ECEC) program financial accountability statement.
Operating costs
Use the guidance note above (if required) to apportion the operating costs across the DoE Funds and Non-DoE Funds columns. Enter day-to-day operational expenses, not directly involved with the service provision.
Note: Do not include Fee Relief Payment, Free Preschool or any other DoE grant expenditure under this section. These grant amounts have their own financial accountability statement.
Depreciation
Depreciation is a non-cash expense which represents the decline in value of an asset over an asset’s estimated useful life. To the extent that the asset is being utilised for direct service delivery of department funded services and the asset is reflected on the Balance Sheet, the service can claim depreciation expenses as expenditure against department annual funding.
Asset/capital acquisitions
Only enter assets or capital items purchased using Start Strong for Community Preschool / Mobile Preschool Funding Program funding programs into the DoE funds column.
Loss on sale of assets
Enter the loss incurred from the sale of an asset that was purchased with department funding.
Other expenses
Enter other expenses reported in the financial statements that have not been reported elsewhere. These could be financing expenses, compliance costs, legal and consultancy fees, etc. For mobile preschool operators, these could be vehicle costs, including usage and maintenance and leasing arrangements.
# Less funds used for operating expenses from Fee Relief payments
Note: The amount entered in Part 1 Fee Relief Payment Expenditure item iii) # will be automatically deducted from the DoE Funds column operating expenses. This is because the service will be acquitting that amount already under Part 1 Fee Relief Payment expenditure.
Balance (Surplus or Deficit)
It is expected that services will expend the full amount of department grant funds (DoE Funds column) first, then cover any expenses over and above the department funding amount from other sources of funding (Non-DoE Funds column) and any retained profits.
If a service has used all department funding, the DoE Funds column total at this section should be $0.00 showing all department grant funds have been expended.
Note: There should not be a deficit noted in the DoE Funds column if a surplus is noted in the Non-DoE Funds column. Services would have used their Non-DoE Funds to cover the deficit noted in the DoE Funds column.
It is acceptable for the service to have surplus funds in the Non-DoE column after all DoE grant funds have been expended (showing $0.00 balance).
A deficit in both DoE Funds and Non-DoE Funds columns is acceptable if a service used all DoE Funds income as well as their Non-DoE Funds income and were required to use any retained profits to meet the shortfall to keep operating.
Any surplus balance in the DoE Funds column will carry over to Part 3 – DoE Funding Surplus Overview and Declaration section. This is applicable to Start Strong for Community Preschools only. See further information below.
Additional information
Add any additional notes on how the funds were spent.
Suggestion: Add a note if any fee relief surplus funds were applied to your program operational expenses.
2.3. Part 3 – DoE Funding Surplus Overview and Declaration
This section is applicable to Start Strong for Community Preschool only and is not relevant to Mobile Preschool Funding Program
This section was used for trial purposes in 2023 Start Strong for Community Preschools Program Guidelines. New surplus and refunds guidelines apply from 2024 onwards.
Service providers should read information on Surplus and Refunds in the 2023 Start Strong for Community Preschools Guidelines and 2024 Start Strong for Community Preschools Guidelines before choosing to retain any surplus up to, or greater than 10% of the Start Strong for Community Preschools annual program. Visit Start Strong for Community Preschools to access the guidelines.
Service providers are required to expend all annual Start Strong for Community Preschools Program funding in accordance with the spending rules in the program guidelines during the relevant program period.
A surplus amount will be noted in the bottom row at ‘Total Surplus’ with a calculated percentage of what that surplus amount is compared to the funding paid under the 2023 and 2024 Start Strong for Community Preschools Program.
| Surplus (DoE Funding) | Amount ($) excluding GST |
|---|---|
| Part 1 – Fee Relief Payment balance (excluding Reserved Fee Relief Funds) | $0.00 |
| Part 2 – Program Payment balance | $0.00 |
| Total Surplus | $0.00 |
| Service Total Program Surplus Percentage Calculation | % |
If this section on the service’s financial accountability statement does not display a surplus, this means the service did not have an overall program surplus. Leave options A and B as unchecked.
The department understands that some service providers may have a surplus at the end of their reporting period which needs to be returned to the department according to the Terms and Conditions.
Surpluses will be identified and validated through the annual financial accountability process.
2.3.1. Surplus Thresholds and Options for Providers (please select Option A or Option B).
Use the ECCMS calculated percentage of the surplus threshold to choose the Option relative to your service.
Option A: Approved services can choose to retain surpluses below 10% or $30,000 (whichever is higher) of the Start Strong for Community Preschools *annual program funding or choose to return their surplus funds.
Option B: Approved services can choose to retain surpluses up to, and greater than 10% or $30,000 (whichever is higher) of the Start Strong for Community Preschools *annual program funding.
For Option B, the service will be required to make application to retain the surplus funds by completing a separate Surplus Application Form link and checking the confirmation box on the financial accountability statement.
The service can also decide to return the surplus which is greater than 10% or $30,000 (whichever is higher) of the Start Strong for Community Preschools annual program funding* or choose to return all their surplus funds (up to and greater than 10% or $30,000).
*This amount is the total income for both Part 1 – Fee Relief Payment and Part 2 – Program Payment.
See the examples below for surplus calculations:
- The service will calculate the 10% of the annual Start Strong for Community Preschools Program funding e.g. $380,000 x 10% = $38,000. This is calculated using the annual program funding (total of Fee Relief Payment plus Program Payment).
- ECCMS will calculate the surplus amount into a percentage e.g. $27,000 ÷ $380,000 x 100 = 7.1%.
If the surplus is up to 10% or $30,000 (whichever is greater) of the annual program funding, the service should select Option A.
If the surplus threshold is greater than 10% or $30,000 (whichever is greater) of the annual program funding, the service should select Option B.
| Example 1 – Option A | Amount |
|---|---|
Total Program Funding (including Fee Relief and Program payments) |
$380,000 |
| Total Surplus at Part 3 | $27,000 |
| ECCMS Surplus % Calculation ($27,000 ÷ $380,000 x 100) | 7.1% |
| 10% of Start Strong Annual Program (10% of $380,000) | $38,000 |
The service can choose to keep the amount below 10% of program funding or $30,000 (whichever is greater).
As $27,000 is less than $38,000 (10% of the annual program funding), the service can opt to keep the surplus to carry over to the next funding period.
| Example 2 – Option B | Amount |
|---|---|
| Total Program Funding (including Fee Relief and Program payments) | $380,000 |
| Total Surplus at Part 3 | $42,000 |
| ECCMS Surplus % Calculation ($42,000 ÷ $380,000 x 100) | 11.05% |
| 10% of Start Strong Annual Program (10% of $380,000) | $38,000 |
The service can choose to keep $38,000 (up to 10% of program funding).
Additionally, where the service has an operational need to retain the surplus, they can apply to the department to keep the surplus amount which is greater than 10% or $30,000 (whichever is higher).
The service is first required to complete the Surplus Application Form link and then select the confirmation box (the top box at Option B) on the financial accountability statement.
When completing the Surplus Application Form link the service can choose to keep the additional $4,000 which is the amount above the $38,000 (higher than 10% or $30,000).
Further information on the management of surplus funds can be found in the Management of Surplus Funds section below.
Financial Attachments
Financial reporting requirements depend on whether the service provider is classified as a Tier 1 or Tier 2 organisation under NSW Fair Trading guidelines.
For further information on the required documents to attach under this section, please refer to the Financial Reporting Requirements section above.
3. Start Strong for Long Day Care 2023 (SSL) Program, including Fee Relief, Program and 3 Year Old Trial Payments
This section is relevant to Start Strong for Long Day Care (SSL) Program which includes the Fee Relief Payment for eligible children aged 4 and above, Program Payment and 3 Year Old Trial Payment.
Visit Start Strong for Long Day Care program to access the guidelines specific to this financial accountability statement.
Services can use the Start Strong for Long Day Care completed financial accountability example (PDF 4.1 MB) with hover over icons in this link for further assistance.
3.1. Part 1 – Fee Relief Payment
Part 1 – Fee Relief Payment should be completed before completing Part 2 – Program Payment.
3.1.1. Income Section
Fee Relief Payment
Fee Relief Payment amount is automatically pre-filled by ECCMS based on the total Fee Relief payments made to the service during the relevant reporting period.
Note: The 2023 Start Strong for Long Day Care financial accountability statement captures Fee Relief payments made to the service for the 2023 calendar year.
Fee Relief Payment from transferred service
Fee Relief Payment from transferred service is applicable only to services that received Fee Relief Payment funds from a transferring (out) service during the 2023 calendar year. If this does not apply to you, please leave this line blank on the financial accountability statement.
Unexpended Fee Relief Funds
Before completing this section, you first need to determine and calculate any unexpended (reserved) fee relief funds.
Unexpended Fee Relief Funds (reserved) are funds that were not allocated to an enrolment e.g. the service had fewer children enrolled than funding was provided for, or for enrolled children where families have claimed fee relief elsewhere. Services are required to retain these fee relief funds until a new eligible enrolment claims fee relief at the service. The amount in this section is manually entered by the service.
The unexpended (reserved) fee relief amount can be determined by calculating the difference between funding provided by the department, and the actual number of eligible families accessing fee relief at your service.
3.1.2. Calculate the Unexpended/Reserved Fee Relief Amount
The examples below are for the flat rate of $2,110 per child.
Example 1
If the service was funded for 20 eligible children but only 18 accessed fee relief, funds for the remaining 2 children (2 x $2,110 = $4,220) must be reserved.
| Payment description | Amount |
|---|---|
Fee Relief payment received from the department (Equates to 20 eligible children funded - $42,200 ÷ $2,110 = 20) |
$42,200 |
| No. of declarations received from eligible families accessing fee relief | 18 |
| Difference between number funded and number of families accessing fee relief (20 – 18 = 2) |
$4,220 |
Total Adjusted Income ($42,200 - $4,220) This is the amount of fee relief the service needs to acquit in the ‘Funding Used to reduce Fees/Expenditure’ section of the Financial Accountability Statement. |
$37,980 |
Note: Only enter the unexpended (reserved) fee relief amount, where funds were not allocated to an enrolment because the service had fewer children enrolled than funding was provided for, or for enrolled children where families have claimed fee relief elsewhere.
This amount is not the unspent funds from Fee Relief payments after applying fee relief as a weekly deduction to reduce session or gap fees, additional charges, or operating expenses, and should not be included in the ‘Funding Used to Reduce Fees/Expenditure’ section below. The Unexpended (reserved) fee relief amount must be shown separately as noted above.
Nothing else needs to be done with this amount on the financial accountability statement. This shows the department the amount of unexpended fee relief funding held. The amount will be reviewed and adjusted against next year’s fee relief payment.
Note: If a service had more enrolments claiming fee relief than the service was funded for, and the service was required to use their own retained profits to temporarily cover the cost of fee relief to reduce session fees, gap fees and additional charges, a negative figure should be entered next to the ‘Unexpended Fee Relief Funds’ section, see Example 2 below.
Example 2
If the service was funded for 20 eligible children but 22 accessed fee relief, funds for the extra 2 children (2 x -$2,110 = -$4,220) should be entered as a negative figure to demonstrate the service passed on more fee relief than what was allocated to your service. This negative figure will be the difference between the amount paid by the department, and the fee relief amount passed on to families.
This shows the department that a Fee Relief adjustment payment may be required.
| Payment description | Amount |
|---|---|
Fee Relief payment received from the department (Equates to 20 eligible children funded - 42,200 ÷ $2,110 = 20) |
$42,200 |
| No. of declarations received from eligible families accessing fee relief | 22 |
| Difference between number funded and number of families accessing fee relief (20 – 22 = -2) |
-2 |
Value of fee relief difference (2 x $2,110 = $4,220) – enter as a negative figure This is the amount of additional fee relief passed on to families Nothing else needs to be done with this amount on the financial accountability statement. This shows the department the service passed on more fee relief than what was received from the department. |
-$4,220 |
Total Adjusted Income This figure will remain the same. |
$42,200 |
Funding Used to Reduce Fees / Expenditure section should be the total of the amount the service received from the department, plus the additional amount passed on from the service’s own retained profits. ($42,200 + $4,220 = $46,420 - This is the total amount the service passed on to families) |
$46,420 |
Balance surplus or deficit ECCMS will calculate a deficit - showing the amount of additional fee relief passed on from the service’s retained profits. ($42,200 - $46,420 = -$4,220) |
-$4,220 |
Services may be eligible for a Fee Relief Adjustment Payment in 2024 to address a fee relief related deficit accrued because of providing fee relief to more enrolments than the service was initially funded for in 2023. Refer to ‘Fee Relief Funding Adjustments’ section in the 2023 Start Strong for Long Day Care program guidelines and ‘Fee relief funding adjustments’ flowchart for services (PDF 192 KB).
Note: If your service has already received an adjustment payment for the 2023 Fee Relief shortfall (calculated using the information in your data submissions), do not include the adjustment amount in the 2023 financial accountability. The adjustment amount will be included in the 2024 financial accountability statement.
Total Adjusted Income
Total Adjusted Income is an automatic calculation. It is the amount of the total Fee Relief Payments, less any Unexpended Fee Relief (reserved/quarantined Fee Relief Funds not allocated to an enrolment) noted above.
| The calculation for Total Adjusted Income |
|---|
| Total Fee Relief Payment from the department |
| Less: Unexpended Fee Relief Funds |
| Equals: Total Adjusted Income available |
Total Adjusted Income is the amount of fee relief funds the service had available to use.
The service should show how this funding was used to reduce session or gap fees, additional charges, or operating expenses by entering a breakdown in the ‘Funding Used to Reduce Fees/Expenditure’ section below.
Where required, prior to the adjustment, Program Payment funds may also be used as an interim measure to provide fee relief to the families of eligible children.
The department will use data from the January to June 2023 data submission (submitted July-August 2023) and July to December 2023 (submitted from March 2024) periods to calculate any adjustment.
The 2023 Start Strong for Long Day Care Fee Relief data submission for the period 1 July to 31 December 2023 was open in March 2024.
Note: Initial Fee Relief Payment adjustments were paid to services from September 2023.
The service will need to clearly show the breakdown of how this funding was used to reduce session or gap fees, additional charges, or operating expenses by entering a breakdown in the Funding Used to Reduce Fees/Expenditure’ section below.
See Frequently asked questions section in the Financial Accountability - Information for Services web page for more information and assistance.
3.1.3. Expenditure Section (Funding Used to Reduce Fees / Expenditure)
The approved provider must use Fee Relief Payment funds to provide fee relief to the families of eligible children at least 4 years old on, or before, 31 July 2023.
Services must apply the Fee Relief Payment funding:
- Firstly, as a weekly reduction to a family’s gap fees across the total service operating weeks for the calendar year, then
- After reducing family gap fees to zero, the Approved Provider must then spend the funds to cover any additional charges imposed on the eligible children, such as levies, then
- Remining funds may then be used to:
i) reduce the fees for eligible children not accessing fee relief at the service, e.g. children of families with greatest need; or
ii) # in line with the Program Payment spending rules, used to reduce the service’s operating expenses
Using any surplus from Fee Relief Payment for operational expenses
Services must apply the funding in the order noted in Section 4.1.2 Fee Relief Payment Spending Rules. If there are remaining funds after applying the funding to level 1 ‘as a weekly reduction to a family’s gap fees across the total service operating weeks for the calendar year for eligible children accessing fee relief at the service’, funds must then be applied to level 2 ‘to cover any additional charges imposed on the eligible children, such as levies.
If there is any surplus after applying against level 2, the approved provider may then plan for and then use any remaining funds from Term 4 for operational expenses in line with the 2023 Start Strong for Long Day Care Program Payment Spending rules:’.
For more information, see the 2023 Start Strong for Long Day Care FAQs.
# Any remaining Fee Relief Payment used in line with the 2023 Start Strong for Long Day Care Program Payment Spending Rules for operating expenses
The amount entered in Item 3 ii) # above will be automatically deducted from Part 2 – Program Payment expenditure. This is because the service will be acquitting that amount already under Part 1 – Fee Relief Payment expenditure.
Additional information
Add any additional notes on how the funds were spent.
Suggestion: Add a note if any fee relief surplus funds were used in line with Program Payment spending rules to reduce your program operational expenses.
Fee Relief Declarations
Services must confirm:
- fee relief in the form of a reduction to fees has been passed on to families
- signed fee relief declaration forms have been received for each child enrolled at the service
- fee relief data has been submitted to the department through the ECCMS system.
Note: Amounts noted on the financial accountability statement should clearly agree with the figures reported in the department’s data capture submission and the service’s financial accounting records.
For more information, please see section 4.1.2 Fee Relief Payment Spending Rules.
Note: Fee Relief Declaration forms are different to Start Strong child consent forms.
3.2. Part 2 – Program Payment
This section is relevant to service providers who received Program Payment funding under the Start Strong for Long Day Care Program (SSL).
3.2.1. Income Section
Program Payment
Program Payment is automatically pre-filled by ECCMS based on the total payments made to the service for the 2023 calendar year under this program.
Program Payment from transferred service
Program Payment from transferred service is applicable only to services that received Program Payment funds from a transferring (out) service during the 2023 calendar year period. If this does not apply to you, please leave this line blank on the financial accountability statement.
3.2.2. Expenditure Section
Expenditure of funds should be divided up between the respective line items on the financial accountability statement.
Spending rules allow services to spend funding on one, or any combination of:
- pay salary and wages for early childhood teachers and educators delivering the quality early childhood education program
- purchase of functional or education resources (excluding capital works projects) for the benefit of all children aged 4 and above
- develop a quality early childhood education program based on the Early Years Learning Framework, including associated staffing costs
- develop staff, including upgrading qualifications from a certificate to a diploma and/or a diploma to a 4-year degree and associated staffing costs, traineeships, study leave, course fees, backfilling of staff undertaking career development
- attract and retain early childhood teachers and educators, including advertising early childhood teacher and educator positions and bonuses for retention or recognition of length of service and experience
- wellbeing supports for early childhood teachers and early childhood educators.
It is not correct to show your total wages line item from your financial statements from your accountant against the salary and wages line item in Part 2 or Part 3 on the financial accountability statement .
Only show expenditure to acquit the grant amount paid from the department.
# Less funds used from remainder of Fee Relief Payment funding
In line with the Start Strong for Long Day Care Program Payment Spending Rules, this amount has been acquitted under Part 1 Fee Relief Payment and will be deducted from Part 2 Program Payment expenditure.
Where the service is using surplus funding from fee relief payment towards operational expenses, the expenditure in this section should be the total of the program payment (if all program payment funding has been used), plus the funds used from the remainder of Fee Relief Payment funding.
Example
The service used the surplus fee relief funding balance in 2023 towards their operational expenses. The amount of $5,200 was noted next to ‘#Any remaining Fee relief Payment used in line with the 2023 Start Strong for Long Day care program Payment Spending Rules in Part 1 – Fee Relief Payment on the financial accountability statement.
| Payment description | Amount |
|---|---|
| Program payment from the department | $24,500 |
| Program expenditure as per line items 1-6 ($24,500 + $5,200) | $29,700 |
| # Less funds used for operating expenses | -$5,200 |
| Total Expenditure Program Payment | $24,500 |
| Balance | $0.00 |
In total, the service used $24,500 + $5,200 from the overall 2023 Start Strong for Long Day Care program towards their operating expenses for 4 year old children.
Additional information
Add any additional notes on how the funds were spent. This could be a note to say the funding was used for wages.
3.3. Part 3 – 3 Year Old Trial Payment
This section is relevant to services who received 3 Year Old Trial Payment funding under the Start Strong for Long Day Care Program (SSL). Services are strongly encouraged to read the Start Strong for Long Day Care Program guidelines - Appendix 1: 3 Year Old Trial prior to completing this section.
3.3.1. Income Section
3 Year Old Trial Payment
3 Year Old Trial Payment is automatically pre-filled by ECCMS based on the total of 3 Year Old Trial Payment made to the service for the 2023 calendar year period under this program.
3 Year Old Trial Payment from transferred service
3 Year Old Trial Payment from transferred service is applicable only to services that received 3 Year Old Trial Payment funds from a transferring (out) service during the 2023 calendar year period. If this does not apply to you, please leave this line blank on the financial accountability statement.
3.3.2. Expenditure Section
Expenditure of funds should be divided up between the respective line items on the financial accountability statement.
Spending rules allow services to spend funding on one, or any combination of:
- purchase of functional or education resources (excluding capital works projects) required to provide a quality preschool program to 3 year old children
- design or deliver a quality early childhood education program for 3 year old children based on the Early Years Learning Framework, including associated staffing costs
- develop staff to increase their capacity to design or deliver 3 year old preschool programs based on the Early Years Framework, including professional development, study leave, course fees and backfilling of staff undertaking career development
- pay salary and wages for additional early childhood teachers to deliver quality early childhood education program to 3 year old children
- reach out to local community to inform families of the benefits of 3 year old children accessing preschool programs through Long Day Care services
- reduce non-fee related barriers that families of enrolled 3 year old children face when accessing quality preschool program provided by Long Day Care services.
Additional information
Add any additional notes on how the funds were spent.
4. Quality and Participation Grants Program (QAP & QAPA)
The financial accountability statement for the Quality and Participation grant funding is divided into two parts:
- Quality and Participation – Categories 1 to 3
- Quality and Participation – Additional Funding
Services should read the Quality and Participation Grants Program guidelines before completing the financial accountability statement.
4.1. Part 1 Quality and Participation Categories 1 – 3
This section is relevant to services that received funding under the Quality and Participation Grants Program (QAP) during the relevant reporting period.
4.1.1. Income Section
This section is automatically pre-filled by ECCMS based on the total payments made to the service under this program.
4.1.2. Expenditure Section
Expenditure of funds should be divided up between the respective Spending Rules line-item categories on the financial accountability statement.
Category 1: increase participation and access for children experiencing vulnerability and disadvantage, by delivering targeted initiatives and support for Aboriginal children and children from low-income families.
Category 2: improve quality learning environments to positively impact experiences and outcomes for preschool aged children.
Category 3: support the implementation initiatives to meet the Preschool Reform Agreement (up to $2,500)
Note: Please read the Quality and Participation Grants Program guidelines to understand what expenditure items are excluded from this funding.
Additional information
Add any additional notes on how the funds were spent under each category.
4.2. Part 2 Quality and Participation – Additional Funding
This section is relevant to service providers that received funding under the Quality and Participation Grants Additional Funding (QAPA) program during the relevant reporting period.
4.2.1. Income Section
This section is automatically pre-filled by ECCMS based on the total payments made to the service under this program.
4.2.2. Expenditure Section
Expenditure of funds relative to the Additional Transport Initiatives only should be noted against the line item on the financial accountability statement for:
- purchase of a transport vehicle (services are not able to apply for this category if they have previously received funding for a vehicle through this program)
- other transport initiatives (such as vehicle maintenance, repair cost, hiring a driver or vehicle).
Note: Grant funding through this stream must be used for transport initiatives only.
Additional information
Add any additional notes on how the Additional Transport Initiatives funds were spent.
Note: As per the Quality and Participation Grants program guidelines services have until 30 June 2024 to spend Quality and Participation Program funding and Additional Transport Initiatives funding. Services that have not spent their allocated funding at the time of the financial accountability release should not submit their financial accountability statement until funding has been spent by 30 June 2024.
Confirmation for old Quality Learning Environments and Community Grants Financial Accountabilities
The Quality and Participation program financial accountability statement includes check boxes at the end of the document. The check boxes are for those services that received funding under the old Quality Learning Environments or Community Grants streams 1 or 2 programs, where the service received a spend extension for either one of the old programs and submitted their financial accountability statement with a $0.00 expenditure noted.
Ticking the relevant year and program checkbox will confirm that funds have now been spent.
Services are not required to ‘re-submit’ any previously submitted Quality Learning Environments or Community Grants streams 1 or 2 program financial accountability statement that had a $0.00 expenditure noted.
Services that have not submitted the old Quality Learning Environments or Community Grants financial accountability statements to date should still submit the financial accountability statement via ECCMS noting the full expenditure. The checkboxes are relative only to services that have previously submitted these financial accountability statements with a $0 expenditure balance.
See Frequently asked questions section in the Financial Accountability - Information for Services web page for more information and assistance.
5. Start Strong Capital Works (CapWorks)
This section is relevant to service providers that received funding under the Start Strong Capital Works Program during the last reporting period.
Services should read the 2022-2023 Start Strong Capital Works Grants Program guidelines before completing the financial accountability statement. Historical guidelines for grantees under previous rounds are also available on the website.
5.1. Income Section
This section is automatically pre-filled by ECCMS based on the total payments made to the service for the project under this program.
5.2. Expenditure Section
Expenditure of funds should be noted against the respective line item on the financial accountability statement:
- Major Capital Fund
- Crisis Fund
- Minor Capital Fund
- Mobile Fund.
Note: At the completion of a capital works project, services are required to complete a Final Works Report. The final works report is required to receive the final milestone payment from the department.
Services are required to complete the financial accountability statement showing how funding was expended against the project. This is separate to the Final Works Report.
Additional information
Add any additional notes on how the funds were spent for each category.
6. Start Strong Pathways (SSP)
This section is relevant to service providers that received funding under the Start Strong Pathways Program (SSP) during the last reporting period.
Services should read the Start Strong Pathways program guidelines.
6.1. Income Section
This section is automatically pre-filled by ECCMS based on the total annual payments made to the service during the relevant reporting period.
The final surplus noted on the previous year's Start Strong Pathways financial accountability statement will be automatically carried forward to this current year’s financial accountability statement if it has not been refunded already.
6.2. Expenditure Section
Services must provide details of how the funding was spent in accordance with the Start Strong Pathways program guidelines spending rules.
See more information on the spending rules in the program guidelines.
Expenditure of funds should be divided between the respective spending rules line items on the financial accountability statement.
Add further information to how funds were spent in the Additional Information section.
Additional information
Add any additional notes on how the funds were spent.
Note: Start Strong Pathways related wages recorded on the Start Strong Pathways financial accountability statement should not be included in wages expenditure on the Preschool/Mobile Preschool or Disability and Inclusion Program financial accountability statements. Only record wages that were paid using this program funding.
Service providers are required to certify that funds have been spent in accordance with the Terms and Conditions of the early childhood education grants program.
Financial attachments
Financial reporting requirements depend on whether the service provider is classified as a Tier 1 or Tier 2 organisation under NSW Fair Trading guidelines.
For further information on the required documents to attach under this section please refer to the Financial Reporting Requirements section above.
7. Disability and Inclusion Program (DIP)
This section is relevant to service providers who received funding under the Disability and Inclusion Program during the relevant reporting period.
Services should read the guidelines for High Learning Support Needs Funds (HLSN) and DIP Minor Capital Works Fund (MCW) via the Disability and Inclusion Program page before completing the financial accountability statement.
7.1. Income Section
This section is automatically pre-filled by ECCMS based on the total payments made to the service for each component under this program.
The financial accountability statement is separated into two components – HLSN and MCW.
A $0.00 will be noted in the income and expenditure box if the service did not receive one of the two grant fundings.
7.2. Expenditure Section
Expenditure of funds should be divided up between the respective line items on the financial accountability statement.
Please refer to the individual spending rules under each component of the funding:
- HLSN
- MCW.
Additional information
Add any additional notes on how the funds were spent under each relative Additional Information section.
Note: HLSN related wages recorded on the DIP financial accountability statement should not be included in wages expenditure on the Preschool/Mobile Preschool or Start Strong Pathways financial accountability statements. Only record wages that were paid using this program funding.
8. Aboriginal Families as Teachers (AFaT)
This section is relevant to service providers that received funding under the Aboriginal Families as Teachers program during the last reporting period.
Services should read the Aboriginal Families as Teachers (AFaT) program guidelines.
8.1. Income Section
This section is automatically pre-filled by ECCMS based on the total annual and one-off payments made to the service during the relevant reporting period.
8.2. Expenditure Section
Services must provide details of how the funding was spent in accordance with the Aboriginal Families as Teachers (AFaT) program guidelines spending rules.
See more information on the spending rules in the program guidelines.
Additional information
Add any additional notes on how the funds were spent.
9. Ninganah No More (NNM)
This section is relevant to service providers that received funding under the Ninganah No More program during the relevant reporting period.
Services should read the Ninganah No More program guidelines.
9.1. Income Section
This section is automatically pre-filled by ECCMS based on the total annual and one-off payments made to the service within this program.
9.2. Expenditure Section
Services must provide details of how the funding was spent in accordance with the Ninganah No More guidelines spending rules.
See more information on the spending rules in the Ninganah No More program guidelines.
Additional information
Add any additional notes on how the funds were spent.
10. Grow Your Own (ECEC)
This section is relevant to service providers who received funding under the Grow Your Own program for Early Childhood Education and Care (ECEC) during 2021-2022 and 2022-2023.
Services should read the Grow Your Own for ECEC program guidelines.
The Grow Your Own funding was launched by the department in the 2021-2022 financial year. This is the first time a financial accountability statement is being released for this program.
Note: The financial accountability statement will capture funding paid to services during 2021-2022 and 2022-2023.
10.1. Income Section
This section is automatically pre-filled by ECCMS based on the total payments made to the service under this program.
10.2. Expenditure Section
Services should only include expenditure relating to the funding received from the department under this program on the financial accountability statement.
Trainee scholarship subsidies (amounts paid by the department to trainees) are not included in the financial accountability statement.
Note: Wages paid to trainees under this program included in this financial accountability statement should not be noted on Start Strong for Community Preschool financial accountability statement.
Additional information
Add any additional notes on how the funds were spent.
11.Management of surplus funds
The department’s Early Childhood Outcomes grant unspent/surplus funding may need to be returned to the department.
11.1. Funding deficits from previous years
If a service has incurred a deficit in prior years, this deficit cannot be carried forward and should be absorbed by the service provider. Fee relief accrued deficits will be reviewed by the department. Any required adjustments will be processed.
11.2. Transfer/reallocation of funds
Service providers cannot transfer grant funding between services from different grant programs, unless specifically permitted in the program guidelines e.g. Start Strong fee relief funds to Start Strong Program payment.
Additionally, any surplus funds cannot be transferred to other service providers, between services or across funded programs, unless it is permitted specifically in the program guidelines.
11.3. Recovery of funds
As outlined in the Early Childhood Outcomes Grants Terms and Conditions, a service provider is required to return any unspent/surplus funds in accordance with the department’s requirements. Unspent/surplus funds are Early Childhood Outcomes grant funding not actually spent or committed for the purposes specified in the relevant program guidelines.
Service providers with any unspent/surplus funds to be recovered or returned should contact the department. The department will advise the service provider, after reviewing the accountability statement, whether these funds will be recovered by offset or if they should be returned to the department.
11.4. Offsets against future payments
In some cases where program guidelines specifically permit, a surplus will be recovered by offsetting future grant payments. Money owed to the department will be deducted from future payments to the service provider until the entire surplus is recovered.
11.5. Process for return of funds to the department
In instances where an offset cannot be used to recover a surplus, for example where a service provider no longer receives Early Childhood Outcomes grant funding or where it is not allowable under program guidelines, funds must be returned in accordance with the department’s requirements.
If a service provider is required to return funds to the department, they will receive an invoice for payment, specifying the program, amount and the service to which the request relates, as well as payment options.
12. Financial accountability statement review
The following review process will be undertaken:
- Financial accountability statements will be reviewed by the department.
- If any issues have been identified the service provider will be contacted to clarify and amend the financial accountability statement where necessary.
- The financial accountability statement may also be reviewed by an external auditor engaged by the department.
- If there are any compliance issues identified, the department will contact the service provider.
If a service provider is seeking clarification of a financial accountability statement review, a written request should be made to ECEAudit.funding@det.nsw.edu.au.