Unspent funds refer to funds paid by the department to services that are not expended during the specified funding period.

Program guidelines outline conditions and rules for how the program funds may be spent.

The return of unspent funding is a routine government process that helps ensure public funds are used efficiently, and are provided across areas of greatest need, to best support NSW children and families. Returning unspent funds is a requirement as outlined in the 2023 Terms and Conditions of the Funding Agreement and associated Program Guidelines.

The department will work closely with services to review any surplus funding from the 2023 program year identified through standard financial processes.

If your service has reported unspent funds in the 2023 Financial Accountability Statement, the department will contact you via email to verify the amount.

Once the unspent amount is confirmed, your service will be provided with a Statement of Return of Unspent Funds, including step-by-step instructions to guide you through the process. Services are asked to return the funds within 20 business days of receiving this statement.

Discrepancies can be due to a reporting or system error by either department or service and for this reason the process begins with verifying the statement amount. If a service identifies a discrepancy and the reported amount is incorrect, you will need to notify the department and request to complete a revised 2023 Financial Accountability Statement. The department will review your request and may seek further supporting evidence before approval.

You can notify the department by emailing ecec.funding@det.nsw.edu.au and a team member will help guide you through the process.

Services report on unspent funds in their end-of-year Financial Accountability Statements through ECCMS. The department will contact services to verify the amounts reported and support you with guidance through the returns process.

End-of-year financial accountability statements are the annual reporting requirement where services must detail how grant funding was spent for each funding specification, including details of any unspent funds. This requirement is set out in the Terms and Conditions of the Funding Agreement and the associated Program Guidelines.

The return of unspent funds is a separate, follow-up process that occurs after these statements are submitted and reviewed. The department uses the information reported in the financial accountability statements to identify any unspent amounts and to arrange the return of unspent funds where required.

The department is taking a phased approach to recovering unspent funds, beginning with the return of funds from the 2023 program year.

In future phases, the department will contact services to begin the process of returning unspent funds identified in the 2024 financial accountability process.

If you would like to request to return unspent funds from 2024 sooner, this can be arranged by emailing ecec.funding@det.nsw.edu.au.

Recovery of unspent funds does not impact future funding allocations or fee relief. It’s a routine step to make sure funds are used where they are needed most.

For more information or help, please contact the Early Childhood Education Information and Enquiries team by phone 1800 619 113 or email ecec.funding@det.nsw.edu.au.

The return of unspent funding is a routine government process that helps ensure public funds are used efficiently and are provided across areas of greatest need. Returning unspent funds is a requirement under the Terms and Conditions of the Funding Agreement and associated Program Guidelines, which Approved Providers agree to when signing the Funding Agreement.

As communicated since September 2025, the department is progressively contacting early childhood education providers who have reported unspent funds through their Financial Accountability Statements to arrange the return of those funds. This phased recovery process commenced with funding from the 2023 program year.

As an Approved Provider registered for GST under your ABN, funding paid to your service includes a GST component. Where unspent funds are required to be returned, both the funding amount and the associated GST must be returned to the department.