Early Childhood Education and Care Flexible Initiatives Trial

The broad objective of the Early Childhood Education and Care (ECEC) Flexible Initiatives Trial (the program) is to increase families' economic, educational, and societal participation through improved access to ECEC services, by supporting services to trial new or adapted flexible operating models. The program also aims to ensure that the ECEC workforce is supported to deliver flexible models of ECEC.

The FIT program is delivered from the Childcare and Economic Opportunity Fund with a total grant value of $20 million (excl. GST). Following two successful rounds, FIT Round 3 also offers an opportunity to trial extended hours care options for preschool-aged children. Additionally, it provides ongoing support for the establishment of family day care services in inner regional, outer regional, remote, and very remote areas.

These program guidelines form part of the ECEC Flexible Initiatives Trial funding agreement with successful applicants, i.e. approved funded providers, and may be amended or replaced by Childcare and Economic Opportunity Fund Board (Board) from time to time. Contracted providers must comply with the current version of the program guidelines, available on the NSW Department of Education website.

1. Policy Context

The Childcare and Economic Opportunity Fund seeks to address the challenges related to access and affordability of ECEC services for NSW families.

For some families, limited availability of flexible service options poses a barrier to accessing both ECEC and work/study. The ECEC Flexible Initiatives Trial aims to reduce or remove this barrier by providing support that enables ECEC providers to extend their services to reach more families.

2. Objectives

The objectives of the ECEC Flexible Initiatives Trial are centred on enhancing the accessibility and adaptability of ECEC services for families across New South Wales. The program seeks to address the challenges families face in accessing ECEC by promoting increased flexibility in how services are provided.

‘Flexibility’ in this program refers to any modification to core ECEC business operations that promotes accessibility for families, including extended hours care for preschool aged children (3-5 years), extending service operating hours (including additional days, and/or vacation care) or establishment of a new family day care in inner regional, outer regional, remote or very remote areas.

The key objectives of the program are to:

• increase accessibility of ECEC for families who need more flexible options, including an increase in the number of available places
• increase participation, particularly of women, in work and/or study, which is enabled by increased access to ECEC services
• increase service providers’ knowledge of local flexibility needs and their capacity to meet those needs
• provide appropriate support and working conditions for educators delivering flexible models
• develop an evidence base for successful flexible models to inform future program development.

3. Principles

The ECEC Flexible Initiatives Trial operates based on a set of principles that guide its approach to supporting ECEC services. These principles are fundamental in shaping the trial's strategies and activities, ensuring that children and families receive the support they need in a culturally safe, inclusive, and outcomes-focused environment.

The Trial's operations are guided by the following principles:

• Child and family focus – activities are built around the child’s needs and circumstances of children and families.
• Cultural safety – activities are culturally appropriate and safe for Aboriginal and Torres Strait Islander children, families, and staff.
• Inclusivity – activities are accessible and meet the needs of all children and families.
• Responsiveness – activities are tailored to meet an identified local need for flexibility.
• Focused on outcomes – quality of education and care is maintained, and outcomes are measured.

To illustrate the relationship between program activities and intended outcomes, an ECEC Flexible Initiatives Trial logic has been developed.

5. Program description

The ECEC Flexible Initiatives Trial will support ECEC services to trial new or adapted flexible operating models that meet the local needs of children and families, thereby increasing access to available ECEC places.

The Program will be delivered by ECEC approved providers operating in NSW, contracted under the ECEC Flexible Initiatives Trial. Contracted providers will receive funding to deliver program activities in line with their individual funding agreement (which includes these Program guidelines).

The Program operates under 2 streams:

Steam 1: Flexible service delivery

• Stream 1A - expansion of an existing community preschool, local government preschool, Aboriginal Community Controlled Organisation (ACCO) operated preschools, ACCO long day care, and not-for-profit preschools to provide extended-hours care (excluding Public Preschools).
• Stream 1B - establishment of new Family Day Care services in inner regional, outer regional, remote or very remote areas (according to ARIA+ classification), facilitated by a qualified educator under an existing approved ECEC service provider.

Steam 2: Blended service delivery

Stream 2 - establishment or expansion of delivery of, extended hours (Out of School Hours provision) of care to children attending a public preschool on a public school site.

Eligible approved providers of eligible ECEC services may apply for funds to deliver program activities in one or both streams.

Successful applicants will deliver activities according to their local need and as specified in their individual funding agreement. As the ECEC Flexible Initiatives Trial is a test and trial program, successful applicants will be funded to deliver activities for a maximum 12-month period, or as otherwise specified in individual funding agreements.

Funding for minor capital works on a public school or public preschool site, will be paid by the Board to the department’s Asset Management Unit (AMU) as an indirect grantee (a ‘downstream recipient’). This reflects existing contractual arrangements and processes in place on public school sites where minor capital works are required.

The total estimated funding amount to be granted to the AMU across all projects as an indirect grantee is approximately $500,000 (excl. GST). However, as the total funding amount granted to the AMU is dependent on the number of successful recipients of Stream 2 funding for minor capital works on a public school or public preschool sites and the estimated cost of the proposed minor capital works, this is an estimate only and may be subject to change. Once the final funding amount granted to each recipient of Stream 2 funding for minor capital works has been confirmed, the estimate in these program guidelines will be updated.

Find out more on what can and cannot be funded.

6. Eligibility criteria

Stream 1:

• The applicant must be an approved ECEC service provider under the Children (Education and Care Services) National Law (NSW) No 104a of 2010 – (National Law) or Children (Education and Care Services) Supplementary Provisions Act 2011 (excluding public preschools), that is, one of the following eligible ECEC service types:
  • community preschool (centre-based)
  • mobile preschool
  • local government preschool
  • ACCO operated preschool or long day care service
  • not-for-profit preschools
  • family day care services.
• The applicant’s eligible ECEC service must operate in New South Wales.
• The applicant’s proposed initiative must provide education and care to children within the 0–6-year-old age group.
• The applicant must be registered, or be willing to register, with the department’s Early Childhood Contract Management System (ECCMS) and/or any other systems implemented by the department for contract management.
• The applicant must accept and comply with the funding agreement Terms and Conditions of the ECEC Flexible Initiatives Trial.
• The applicant’s proposed initiative must be beyond the service’s normal, core, existing or ongoing activities.
• The applicant must hold a prescribed rating level under the National Law of at least ‘Meeting National Quality Standard’ for the relevant existing ECEC service.
• Approved providers seeking to establish a new family day care service, must hold a prescribed rating level under the National Law of at least ‘Meeting National Quality Standard’ for an existing ECEC service in NSW.
• Approved providers seeking to establish a new family day care service must ensure that the service is established in inner regional, outer regional, remote, or very remote areas (as classified by ARIA+).

Stream 2:

• The applicant must be an approved ECEC service provider under the Children (Education and Care Services) National Law (NSW) No 104a of 2010 – (National Law) or Children (Education and Care Services) Supplementary Provisions Act 2011 (excluding public preschools).
• The applicant’s eligible ECEC service must operate in New South Wales.
• The proposed initiative must include education and care for children in the year before school, with the option to extend to children up to 12 years of age.
• The applicant must be registered, or be willing to register, with the department’s Early Childhood Contract Management System (ECCMS), and/or any other systems implemented by the department for contract management
• Applicants who are eligible to apply for approval as an ‘approved child care service’ under the A New Tax System (Family Assistance) (Administration) Act 1999 (Cth)—to be approved by the Australian Government to operate a service and administer the Child Care Subsidy (CCS) on behalf of eligible families—must apply for this approval. Any CCS funding received for children enrolled in the program must be utilised to support their initiative in conjunction with the FIT grant.
• The applicant must accept and comply with the funding agreement Terms and Conditions of the ECEC Flexible Initiatives Trial.
• The applicant’s proposed initiative must be beyond the service’s normal, core, existing or ongoing activities.
• The applicant must hold a prescribed rating level under the National Law of at least ‘Meeting National Quality Standard’ for the relevant existing ECEC service.
• Approved providers seeking to establish a new Out of School Hours care service must hold a prescribed rating level under the National Law of at least ‘Meeting National Quality Standard' for an existing ECEC service in NSW.
• The service must:
  • be co-located with a public preschool on a public school site, or
  • be located within a short distance of a public preschool, such that children can be safely transported on foot between the service and the preschool.

7. Application and assessment

The ECEC Flexible Initiatives Trial has a competitive assessment process. To be considered, applicants need to meet specific requirements and provide a comprehensive application that meets the eligibility and assessment criteria. The assessment criteria will be used to evaluate and rank applications by the assessment panel for final funding approval by the Board.

The assessment panel consists of Department of Education employees, in clerk Grade 7/8 Program or Project Officer roles or above. Assessment panel members are appointed based on their expertise and experience in the ECEC sector, program evaluation and project implementation. Members may include former ECEC directors and educators with experience in both metropolitan and regional services.

The assessment panel are required to disclose any actual, potential, or perceived conflicts of interest that may arise during the assessment process which relate to applications received. If a conflict of interest arises it will be managed in accordance with the Code of Ethics and Conduct for NSW Government Sector Employees.

7.1. Assessment criteria

Eligible applications will be evaluated by the assessment panel against the following key criteria:

1. Alignment with one or more objectives of the ECEC Flexible Initiatives Trial. Proposals that are aligned with more objectives will receive a higher score in the assessment process.
2. Provision of quantitative and/or qualitative evidence of a local need for more flexible ECEC, and a clear explanation of how the proposed activities will meet this need.
3. Demonstration that the needs, wellbeing and safety of all children, maintenance of high- quality care, and staff wellbeing have been considered in delivery of proposed activities.
4. Demonstration that the proposed initiative is innovative in testing and trialling a flexible model of delivering an ECEC service.
5. Clear explanation as to how services will prepare for the funding period’s end and sustain their program activities if successful, considering the needs of participating children and families.
6. The extent to which the application demonstrates that the proposed activities will be accessible to all children and families of the service’s local community
7. Demonstration that the proposed initiative represents value for money, including reasonable costs to families. Allowances will be made for the greater costs incurred by services located in rural and remote areas
8. Clear explanation of how services will evaluate or determine the success of their proposed initiative.

These assessment criteria are listed in order of importance and reflective of the weighting applied by the assessment methodology.

Applicants will receive additional weighting towards their application in the assessment process for:

• Services located in a geographic area (Statistical Area Level 2) with SEIFA Decile of 1 and 2 (ranking within NSW) on the Index of Relative Socio-Economic Disadvantage 2021.
• Services operating in inner regional, outer regional, remote, and very remote areas according to ARIA+ classification.
• Multifunctional Aboriginal Children’s Services, Aboriginal Controlled Children’s Services, and Aboriginal Child and Family Centres operating a service listed in the Eligibility criteria.

7.2 Key dates

7.3. Assessment conditions

Applications must be submitted via SmartyGrants by an approved provider or an authorised representative of the approved provider, who confirms the accuracy of the application’s content.

Applications will be reviewed to ensure they are complete, meet the eligibility criteria and comply with the program guidelines.

Eligible and compliant applications will then proceed to assessment. Applications will be assessed on their comparative merits against the assessment criteria. The assessment panel will review the applications and recommend suitable candidates for funding to the Board members who serve as the final Decision-Maker. The Decision-Maker’s decision is final in all circumstances.

During the assessment process, assessment panel members may request additional information and consents from applicants. Failure to provide the requested information and/or consents within the timeframe specified by the assessment panel may result in the application being unsuccessful.

Information on applications that might require amendment or approval from the regulatory authority can be found in Fees payable to the regulatory authority or local council.

Applicants may be asked to consent to the assessment panel verifying whether there have been any previous denials of education and care funding from the NSW Department of Education in relation to the proposed initiative, or a similar or related initiative. Consideration may also be given to information gathered through regular operations, including publicly available regulatory performance and compliance history.

The assessment panel may at their discretion, request information from other NSW Government agencies or other third parties, such as probity advisors, to assist in assessing applications.

It is important to note that submitting an application does not guarantee funding.

8. What can and cannot be funded

8.1. Ineligible elements – all streams

Activities that are ineligible for funding include:

• activities that do not align with the program objectives
• activities that do not meet the eligibility requirements outlined in these guidelines
• activities that do not meet the assessment criteria
• activities that have, at the time of assessment of the application, been started or completed (that is, retrospective funding)
• activities already funded through another source, that is, where another grant is funding the same element/s (for example, Australian or NSW government grant programs)
• any activities in contravention of the funding agreement, which will be signed by successful services.

8.2. What can be funded – all streams

Activities that can be funded across all streams.

Staffing and recruitment costs:

• Staffing and recruitment costs for activities directly related to the proposed initiative (educator and/or administrative and program-related; new or existing staff).
• Staff learning and development costs directly related to the proposed initiative (for example, to train staff in the use of digital software to manage enrolments or rostering).

Operating expenses:

• Operating expenses directly related to the proposed initiative (for example, additional rent for opening longer hours or increased utility costs if required).
• Software costs required to support the proposed initiative (for example subscription or upgrade costs).

Resources and equipment:

• Resources or equipment required for the proposed initiative, where these items are not currently available at the service (for example purchasing additional educational materials, arts/crafts, furniture or fittings required).
• Purchase of tablets or computers to support the proposed initiative where these items are not currently available at the service.

Regulatory authority or local council fees:

• Fees payable to the regulatory authority or local council directly related to the proposed initiative.

Note:

• Applicants will need to provide a budget breakdown listing items, resources and/or activities to support their application.
• Applications must include quotes/evidence for all budget line items exceeding $10,000. (note: separate requirements for capitals works)

8.3. What can be funded – Stream 1A & 1B

Transportation costs

Cost related to transportation of children between their place of residence and the service, related to the proposed initiative, including driver, additional educator for supervision, as well as vehicle hire and fuel costs.

8.4. What cannot be funded – All streams

This program will not fund completed projects or projects that are commenced before the funding agreement has been executed. Applicants must not engage in a contract or commence any works proposed in an application until a funding agreement has been executed. Applicants who commence work prior to executing a funding agreement do so at their own risk.

Activities that cannot be funded across all streams:

Staffing and recruitment costs:

• Recruitment and staffing costs not directly related to the proposed initiative (that is, costs relating to core service delivery).
• Staff learning and developments costs not related to the proposed initiative (for example, trauma awareness, stress management counselling).
• Costs related to allied health professionals.

Operating expenses:

• Routine day-to-day operating expenses, such as maintenance, insurances, utility bills and consumable supplies not directly related to the proposed initiative.
• Other one-off costs (for example, research proposals).

Resources and equipment:

• Resources, equipment not directly related to the proposed initiative.
• Resources, equipment that are currently available at the service will not be funded for an upgrade.

Regulatory authority or local council fees:

• Any regulatory and/or local council fees that have already been paid or are in process prior to the funding agreement being executed.

Stream 2 only: Transportation costs

• Any costs associated with transportation using a vehicle, including purchase, hire, fuel, driver, and additional supervision.

8.5. Minor capital works elements

Funding for minor capital works may be considered where it is demonstrated that the primary purpose of the proposed initiative aligns with the objectives of the program and the minor capital works are essential to the implementation of the proposed initiative.

In these program guidelines, a reference to ‘minor capital works’ means minor construction or renovations that do not change the structure of the premises. This includes small-scale renovations, refurbishments or fit outs that support and are directly linked to the initiative being funded under this trial. The Flexible Initiatives Trial also has maximum caps in place for capital works funding.

Note:

• Applicants will need to provide a budget breakdown listing items, resources and/or activities to support their application.
• Any proposal for minor capital works must:
  • align with the overall objectives of the ECEC Flexible Initiatives Trial
  • provide relevant quotes and/or invoices for all works excluding applicants seeking stream 2 funding for minor capital works on a public school site or public preschool site.
  • be carried out by a qualified builder/licensed repairer.
• Applicants that receive minor capital works must have a minimum remaining lease or equivalent level of evidence of occupancy arrangement term of 5 years, where applicable.
• If an applicant does not meet this requirement at the time of application, they must be willing to secure an eligible lease or equivalent level of evidence of occupancy arrangement by the time of the grant offer. The grant offer will be conditional on this requirement being met.
• Stream 2 funding for a new Out of School Hours care service or expansion of an existing Out of School Hours care service on a public school or public preschool site:
  • Approved providers who are operating, or proposing to establish, an Out-of-School Hours care service on a public school or public preschool site must, in accordance with these program guidelines and consistent with contractual arrangements, have all minor capital works managed and completed by the department’s AMU.
  • Applicants seeking stream 2 funding for minor capital works on a public school or public preschool site will be subject to additional processes and approvals in line with the AMU’s requirements.
  • Funding for minor capital works will be paid by the Board to the department’s AMU as an indirect grantee. This reflects existing contractual arrangements and processes in place on public school or public preschool site where minor capital works are required.

Minor capital works will only be funded where they can be reasonably expected to be completed and proposed activity commenced within the 12 month funding period.

What minor capital works can be funded – streams 1A and 2

Minor capital works elements that can be funded across Streams 1A and 2:

• Minor capital works that are directly linked to the proposed initiative and that are limited to essential infrastructure and/or facility improvements aimed at
  • ensuring compliance with any changes required for regulatory and/or council approvals and/or
  • ensuring a safe and conducive learning environment for children accessing the proposed initiative.
• Minor capital works that are directly linked to the proposed initiative may be considered up to a maximum of $100,000 for all eligible service types.

What minor capital works cannot be funded – stream 1A and stream 2

Minor capital works elements that cannot be funded across Streams 1A and Stream 2:

• Project considered to be major capital works, (major construction or extensive renovations that substantially change the structure of the premises)
• Minor capital works that are not directly linked to the proposed initiative.
• Minor capital work costs over $100,000 for all eligible service types
• Minor capital works associated with major construction or extensive renovations that change the structure.
• Minor capital works also associated with the following:
  • landscaping projects un-related to safety
  • non-essential decorative enhancements and aesthetic improvements
  • expenses related to the purchase of land or property
  • items with high risk, such as trampolines
  • works that cannot be reasonably expected to be completed within the funding period.

What minor capital works can be funded – stream 1B

Minor capital works elements that can be funded for Stream 1B for establishing a new family day care:

• Minor capital works when establishing a new family day care location, limited to essential infrastructure and facility improvements aimed at:
  • ensuring compliance with regulatory standards when establishing a new service and/or
  • the enhancement of quality-of-service provision ensuring a safe and conducive learning environment for children.

Essential repairs and maintenance:

• Funding may be allocated for essential repairs and maintenance to existing infrastructure including but not limited to:
  • minor structural repairs and fixing safety hazards to comply with regulatory standards
  • fixing plumbing and electrical issues to comply with regulatory standards
  • repairing or replacing unsafe playground equipment to comply with regulatory standards.

Safety enhancements:

• Minor capital works may encompass safety enhancements to the premises and facilities, such as:
  • installation or repair of security systems
  • installation or repair of shade sails
  • upgrading fire safety equipment and measures to comply with NSW fire safety standards
  • childproofing and safety improvements, including the provision of adequate and up to date first aid supplies and equipment.

Equipment:

• Funding can be provided for acquiring or upgrading essential equipment and resources required for the delivery of high-quality family day care, including:
  • acquiring or upgrading furniture and fixtures for children's comfort and safety
  • acquiring age-appropriate play equipment.

Accessibility improvements:

• Funding may be allocated to improve accessibility for children and families with additional requirements, such as:
  • repairing, upgrading, or installing ramps and handrails for accessibility
  • making necessary modifications to accommodate children with disabilities.

Note:

• Applicants will need to provide a budget breakdown listing items, resources and/or activities to support their application.
• Any proposal for minor capital works must:
  • align with the overall objectives of the ECEC Flexible Initiatives Trial
  • provide relevant quotes and/or invoices
  • be carried out by a qualified builder/licenced repairer.

What minor capital works cannot be funded – stream 1B

Capital works elements that cannot be funded for Stream 1B for establishing a new family day care:

• Projects considered to be major capital works.
• Minor capital works associated with the following:
  • major construction, or extensive renovations, that substantially change the residential structure
  • landscaping projects unrelated to safety or accessibility improvements
  • non-essential decorative enhancements and aesthetic improvements to the premises or property
  • expenses related to the purchase of land or property, including rent for private properties
    • in limited circumstances, consideration may be given to the use of public properties, such as vacant halls, for family day care services in outer regional, remote or very remote areas
  • items with high risk, such as trampolines.

8.6. Fees payable to the regulatory authority and/or local council

All proposals must adhere to regulations, including relevant building codes and guidelines where applicable, and have relevant regulatory and/or council approvals, including any strata approvals.

For all grants provided under the ECEC Flexible Initiatives Trial, the appropriate regulatory approval under the National Law will need to be obtained for any new service approvals or changes to existing service or provider approval.

Being successful in an application to the ECEC Flexible Initiatives Trial does not guarantee any outcome regarding an application to the regulatory authority and/or local council.

Applicants will be required to certify in their application:

• that they hold the necessary regulatory approvals and/or local council approvals to give effect to their proposed initiative, or
• outline the specific approvals they will endeavour to obtain before commencing the funded activity, and
• provide the reasons for any previous denials, including when and why, if applicants have been previously denied approvals.

Fees for regulatory and/or council approvals will only be funded for successful applicants where:

• the fees are included in the ECEC Flexible Initiatives Trial application
• in the case of application for establishment of a new family day care service, the applicant certifies:
  • they have not previously sought this approval at the nominated service location
  • they have not previously delivered the proposed initiative at the nominated service location.

Note:

• Applicants who choose to apply to the regulatory authority and/or local council before being notified of the outcome of their application will not be reimbursed.
• If services are unable to obtain the necessary approvals, the Board may terminate their funding agreement, and they will not be eligible to receive funding.

8.7. Local council approvals

Some activities proposed in the applications may require approved providers to obtain additional approvals from the service’s local council under the relevant Development Control Plan (DCP), in addition to making an application or notification to the NSW ECEC regulatory authority (which, under the National, is the department.

In these cases, we recommend eligible applicants seek local council approval before applying to the Regulatory Authority.

8.8. Other third-party approvals

Some activities proposed in the applications may require approved providers to obtain additional approvals and endorsements by partner services. For services operating on public school sites this may include approvals from School Infrastructure NSW (SINSW) and the establishment of lease agreements or licensing arrangements with the department as a condition of funding approval. Where minor capital works are required on public school or public preschool sites, these works will be managed and delivered by the department in line with existing processes. Funding awarded in accordance with these guidelines for minor capital works on a public school or public preschool site will be directly paid by the Board to the AMU as an indirect grantee. Stream 2 applicants will need to provide evidence demonstrating the support and endorsement of their application from the Principal of that public school and public preschool.

Approved providers seeking to establish a new service on a public school site must follow the department’s established licensing and tender processes where this is required

Note:

• Approved providers must ensure that all necessary approvals are obtained before implementing the initiative.
• Being successful in an application to the ECEC Flexible Initiatives Trial does not guarantee any outcome for applications submitted to other third parties.

9. Funding amounts and conditions

The amount of funding approved for applicants will be based on the Assessment Panel’s assessment of the amount requested and the information provided in the application.

All amounts listed on the application must exclude GST. This includes the grant amount being requested.

Applications must include quotes/evidence* for:

• All capital works expenditure, regardless of cost.
• All other budget line items exceeding $10,000.

*All quotes and evidence provided must exclude GST.

Contracted providers are required to be familiar with and comply with both the Terms and Conditions of their funding agreement and these ECEC Flexible Initiatives Trial guidelines.

Eligible approved providers who are seeking to establish, or expand delivery of, an Out-of-School Hours care service on a public school or public preschool site must, in accordance with these program guidelines and consistent with contractual arrangements, have all minor capital works managed and completed by the department’s AMU.

Accordingly, all Stream 2 funding for minor capital works to establish or expand delivery of, an Out of School Hours service to children attending a public preschool on a public school site will be paid by the Board directly to the department’s AMU.

9.1. Funding requirements

Contracted providers that receive a grant of funding must:

• Agree to the requirements outlined in these guidelines. Failure to do so may result in funding being withheld or an offer of funding being withdrawn.
• Enter into a funding agreement. Funding agreements must be signed by an authorised officer of the applicant no later than 2 weeks after receipt of the agreement, or within a timeframe agreed with the department.
• Submit progress reports and required supporting evidence upon completion of agreed milestones and completion of the project, in accordance with the funding agreement Terms and Conditions.
• Acknowledge that no additional state or federal funding will be allocated to the proposed initiative. Funding must not be sought for elements funded by other state or federal grants.
• Return any unspent funds.
• Meet any cost or quote increases or any unforeseen expenditures through self-contribution.
• If receiving Stream 2 funding for minor capital works to establish or expand delivery of, Out of School Hours care to children attending a public preschool on a public-school site, acknowledge that all minor capital works funding will be paid by the Board directly to the department’s AMU.

Note: This program will not fund completed projects or projects that are commenced before the funding agreement has been executed. Applicants must not engage in a contract or commence any works proposed in an application until a funding agreement has been executed. Applicants who commence work prior to executing a funding agreement do so at their own risk.

9.2. Service Changes

The funding agreement may be terminated if a service is closed, sold, or transferred during the period of the funding agreement. This decision is at the discretion of the Board. The contracted provider may no longer be eligible to receive remaining payments for their Flexible Initiatives Trial funding. Contracted providers must contact the department as soon as a closure, sale or transfer is being considered via email to ecec.funding@det.nsw.edu.au.

9.3. Transferring Service Approval

Transferring Approved Provider

If a provider (the transferring approved provider) is transferring a service approval to another approved provider (the receiving approved provider), then the transferring approved provider must do the following:

• Contact the department at ecec.funding@det.nsw.edu.au least 42 days before the transfer is to occur.
  
• Immediately contact the department at ecec.funding@det.nsw.edu.au to confirm once the transfer has taken effect.
• If a transfer occurs before the outcome notification date in these program guidelines, the transferring approved provider’s application will be withdrawn from the program.
• If a transfer occurs during the period after notification of outcomes and execution of the funding agreement, prior to funds being released, the Board may decide to approve the transfer if:
  • The receiving approved provider meets the eligibility criteria set out in these program guidelines,
  • The proposed funded initiative fits the receiving approved provider’s service model delivery.
• If a transfer occurs after the transferring approved provider has executed the Funding Agreement and the Board has released the first milestone payment under that Agreement:
  • The department will give the transferring approved provider written notice of any additional financial accountabilities that require completion in accordance with the Funding Agreement for the funded period up to the service transfer effective date. A manual financial accountability form may need to be completed for this purpose. The transferring approved provider must complete any financial accountability within 14 days of the transfer of the service, unless otherwise agreed with the department.
  • The transferring approved provider must return any Unexpended Funds, to the department within the timeframe advised by the department. The transferring approved provider must not under any circumstances transfer any unspent funds to the receiving approved provider either by way of adjustment between the transferring and receiving approved provider, or by any other means.
• The transferring approved provider must comply with any direction given by the department, on behalf of the Board under the Funding Agreement.
• The transferring approved provider must cease expending funding from the transfer effective date unless otherwise agreed with the department.

Receiving Approved Provider

There is no guarantee the receiving approved provider will receive any funding under this program. If a transfer occurs before notification of outcomes, the transferring provider’s application will be withdrawn from the program and the funding will not be transferred to any receiving approved provider.

If an approved provider receives an eligible ECEC service from a transferring approved provider after the outcome notification date in these program guidelines, the department may consider transferring the Funding Agreement to the receiving approved provider if:

• The receiving approved provider meets the eligibility criteria as set out in these program guidelines;
• The proposed funded initiative fits the receiving approved provider’s service model delivery.

A receiving approved provider must do the following to be considered eligible to receive funding:

• The receiving approved provider meets the eligibility criteria as set out in these program guidelines, and
• The proposed funded initiative fits their service model delivery, and

The receiving approved provider must also do the following to be considered eligible to receive funding:

• Liaise with the department about this funding program.
• Immediately contact the department to confirm once the transfer has taken effect.
• Enter into the Terms and Conditions with the department with the amount of funding to be determined by the department in its absolute discretion. There is no guarantee the receiving provider will receive further funding.
• If there are Unexpended Funds, in order to receive a transfer of those Unexpended Funds the receiving provider must confirm in writing to the department that the Unexpended Funds will be used in accordance with the Terms and Conditions. The department does not guarantee that any Unexpended Funds may be transferred by the transferring provider and the department may require the return of Unexpended Funds from the transferring provider.
• The receiving provider may be subject to an eligibility assessment before the transferring/transferred service can receive funding.

Payment of funds during transfer

If an approved provider transfers a service to another approved provider, at its discretion the Board may take actions, including but not limited to, withholding funding from:

• the receiving approved provider of the service, until the transfer is effective; and
• the transferring approved provider of the service, after the transfer is initiated or after the transfer is effective in NQAITS.

Note: approved providers must follow steps to comply with regulatory requirements under the National Law and Regulations, including submitting an application for service transfer to the NSW Regulatory Authority. See the Guiding principles and policies website.

Service ceasing to operate

If an eligible service is to shut down, close or cease to operate or trade trading or is voluntarily suspended or involuntarily suspended, prior to the date of closure, the provider must:

• Contact the department at ecec.funding@det.nsw.edu.au as soon as possible and before the surrender of the service approval.
• From the date of closure, cease expending all funding given under the Funding Agreement.
• Complete all financial accountabilities up to the date of closure, as required or advised by the department. A manual Financial Accountability Statement may need to be completed for this purpose. The financial accountability must be completed within 20 days of the closure of the service, unless otherwise agreed with the department.
• Return all Unexpended Funds, including unexpended surplus fee relief funds, and reserved fee relief funds to the department by no later than 20 days of the service closure date or as agreed by the department.
• comply with any direction by the department under the Funding Agreement.

The Board may take actions if a service has notified the department that it proposes to shut down, close or cease to operate or trade, including withholding funding for the relevant service, where that funding relates to a period after the proposed date of closure.

No funding will be provided by the department for a service that has shut down, closed or ceased to operate or trade, in relation to the period after the date of closure.

Note: providers must follow steps to comply with regulatory requirements under the National Law and Regulations, including notifying the NSW regulatory authority within 7 days of ceasing to operate the education and care service (section 173(2)(d) of the National Law).

9.4. Extensions or delays to funding period

Activities are proposed to run for 12 months. Additional time may be considered for necessary regulatory and/or local council approvals.

Any requests for extension to the project timeframes will be considered in accordance with the provisions in the funding agreement.

To request extensions, contracted providers must:

• contact the department immediately via email to ecec.funding@det.nsw.edu.au when they identify that they may not meet the timeframes for project delivery and
• provide detailed written evidence that explain the reason for the delay and
• provide evidence that demonstrates completion of the project within the additional time requested.

Significant timeframe extensions may not be approved. Excessive delays may ultimately result in the Board recommending withdrawal of the funding commitment and terminating the funding agreement.

10. Notification of outcomes

All applicants, successful and unsuccessful, will be advised of the application outcome in writing via email. Refer to Key dates for the timeframes, including the decision date and outcome notification date.

Successful applicants may be placed under a media embargo to keep the outcome of the application process confidential until the Government makes a public announcement.

Relevant information about the grants awarded will be made available on the NSW Government Grants and Funding Finder, no later than 45 calendar days after the grant funding agreement takes effect.

There is no appeal process for the program outcome. Applicants can request feedback on their application via email to ecec.funding@det.nsw.au.

11. Payment

Specific payment timings and milestones will be defined in an individual funding agreement. Payments will be made subject to providers meeting all conditions outlined in these program guidelines and the individual funding agreement, including reporting requirements and evidence of completing milestones.

The grants will be paid to successful applicants through the Early Childhood Contract Management System (ECCMS) and/or any other systems implemented by the department. Grant payments will only be progressed for applicants that are registered in ECCMS.

Contracted providers will be required to provide a full account and acquittal for how awarded money has been spent.

12. Program governance

12.1. Program management

The overall program management function for the ECEC Flexible Initiatives Trial will be performed on behalf of the Childcare and Economic Opportunity Fund by the Sector Programs directorate in the department’s Early Childhood Outcomes division. Reporting will be provided any time as requested.

12.2. Program-level governance

The Childcare and Economic Opportunity Fund Act 2022 includes the creation of a statutory entity – the Childcare and Economic Opportunity Fund Board. The Board is the decision-maker for the ECEC Flexible Initiatives Trial, providing final approval of all grant payments.

Successful applicants are required to enter into a funding agreement with the Childcare and Economic Opportunity Fund on behalf of the NSW Government. The funding agreement requires that approved providers acknowledge the financial support from the NSW Government. The funding agreement between the Childcare and Economic Opportunity Fund and successful Providers in respect of the Flexible Initiatives Trial Program will comprise of:

• these program guidelines (as amended from time to time)
• the Terms and Conditions (which Providers must have already agreed to)
• the Activity Schedule (which forms part of the funding agreement).

Failure to comply with or complete the above document may result in funding being placed on hold, the Provider being ineligible to receive any funding and the Childcare and Economic Opportunity Fund terminating the funding agreement.

12.3. Legislative context

The program aligns with the objectives of the Childcare and Economic Opportunity Fund Act 2022. The source agency and decision maker for the ECEC Flexible Initiatives Trial is the Childcare and Economic Opportunity Fund Board. The Board may delegate any of its functions in relation to the administration of the program to the staff of the Department of Education.

12.4. Conflicts of interest

Approved providers are required to disclose any actual, potential, or perceived conflicts of interest in their application which relate to their proposed initiative, if funded. A conflict of interest, if it arises, must also be disclosed by a contracted provider during the implementation of their initiative. Conflicts of interest may relate to partnerships, third party service provisions, contractors, staff employed as a direct result of the funded program or other aspects. Further detail about how to disclose a conflict of interest can be provided on request.

12.5. Privacy

Reporting and data collection provide information required to ensure ECEC Flexible Initiatives Trial funds are used to deliver the program’s activities, and measure if the program is achieving its intended outcomes.

Any personal information will be held and managed by the Board and the NSW Department of Education in accordance with the Privacy and Personal Information Protection Act 1988 (NSW). Services may be required to obtain consent from participating families to collect and use personal information.

The Government Information (Public Access) Act 2009 (NSW) GIPA Act provides for the proactive release of certain grants information and gives members of the public an enforceable right to access certain grants information held by an agency (which includes the NSW Department of Education and the). Access to government information is only to be restricted if there is an overriding public interest against disclosure.

The NSW Legislative Council has the power to order the production of State papers by the Executive Government. Standing Order 52 provides that the House may order documents to be tabled by the Government in the House. The Cabinet Office coordinates the preparation of the papers – that is, the return to order. The return to order may contain privileged and public documents. Privileged documents are available only to members of the Legislative Council.

Due to the above, certain documents submitted as part of a grant application may be subject to an application under the GIPA Act or an order for papers under Standing Order 52.

For further information, please contact the department by emailing ecec.funding@det.nsw.edu.au.

12.6. Feedback and complaints

Applicants who have feedback, suggestions or complaints about the application and assessment process should contact the department at ecec.funding@det.nsw.edu.au.

Alternatively, applicants may:

• Complete the NSW Department of Education Complaint, compliment or suggestion form.
• Call 1800 619 113.

13. Reporting and data collection

ECEC Flexible Initiatives Trial contracted providers are required to comply with all financial and data collection, reporting and acquittal requirements as specified in individual funding agreements. Contracted providers must have systems in place to allow them to meet these obligations.

A formal acquittal process must be undertaken within one year of the end of the spending period. This will consist of a statement of expenditure and a performance report. Successful applicants may also be audited as part of the program’s assurance activities.

Data collection and reporting will occur throughout the program's implementation, following specific milestones, as outlined in individual funding agreements.

Evidence required will depend on funded activities but may include progress updates with quantitative data (for example, service utilisation rates, child and family demographics, any relevant approvals, before-and-after photos, itemised invoices) and/or qualitative data (for example, feedback from participating families, participating services and local communities). Contracted providers may also be required to provide a risk assessment regarding program delivery as outlined in individual funding agreements.

14. Evaluation

Contracted providers are required to participate in the evaluation of the ECEC Flexible Initiatives Trial by collecting and providing requested data and participating in evaluation activities. Findings from the evaluation may be used to inform future programs under the Childcare and Economic Opportunity Fund.

Contracted providers may be required to obtain consent from participating families to share relevant data with the Board, department and/or program evaluation team. If necessary, services will be provided with appropriate consent forms and disclosure information. Contracted providers must ensure consent forms are completed prior to collecting and recording personal information.

Further detail about the ECEC Flexible Initiatives Trial monitoring and evaluation activities, including requirements to obtain consent, will be included in individual funding agreements.

15. Links to other programs

The NSW Department of Education has a range of ECEC grants and funded programs to improve early childhood education outcomes. These include (but are not limited to) the Start Strong program for both community preschools and long day care. Start Strong supports preschool education for all children in NSW and is the program through which the Preschool Reform Agreement and preschool fee-relief is delivered.

The Australian Government’s Community Child Care Fund grants help services address barriers to childcare participation, particularly for disadvantaged, regional and remote communities, and Indigenous communities.

16. How to apply

Applications must be submitted online through SmartyGrants to be considered for funding.

You will need to register to use the SmartyGrants application system. Registration is a free and straightforward process.

‘Steps to apply’ will guide you through the application process.

17. Late applications

Late applications will not be accepted.

For applications that are delayed due to extenuating circumstances, applicants must let the department know before the close of the round via email to ecec.funding@det.nsw.edu.au. These requests will be considered on a case-by-case basis.

18. Support, help or advice

A range of resources are available to support applicants in preparing a grant application, which may include FAQs, examples, webinars and workshops.

Get help or advice when preparing your application if you are unsure.

For questions relating to the Flexible Initiative Trial program:

• Contact the Early Childhood Education Funding team at ecec.funding@det.nsw.edu.au.

For advice relating to regulatory and/or compliance and/or service ratings, contact the department:

• Early Childhood Education Information and Enquiries team on 1800 619 113.

For assistance with SmartyGrants, the online application system, please review the SmartyGrants Help Guide and Applicant Frequently Asked Questions (FAQ's) or contact:

• Smarty Grants Support Desk
  03 9320 6888 between 9 am and 5 pm Monday to Friday
  service@smartygrants.com.au.

For more information on applying, visit the steps on how to apply page.

19. Glossary

Accessible: Cover all aspects of accessibility and inclusiveness i.e. of First Nations people, culturally and linguistically diverse communities, and children with disability and additional needs.

Approved provider: An individual, company or partnership who holds a provider approval to operate an ECEC service under the Children (Education and Care Services) National Law (NSW) and Education and Care National Regulations 2011.

ARIA: Relative geographic remoteness is measured in an objective way using the Accessibility / Remoteness Index of Australia Plus (ARIA+). ARIA+ is derived by measuring road distance from various populated locations to five categories of service centre, using population as a proxy measure for service availability.

Assessment criteria: The criteria that the assessment panel will use to evaluate eligible applications. See Assessment criteria.

Assessment methodology: The internal assessment process document used by the assessment panel to ensure a consistent approach to assessing all applications.

Budget: An estimate of income and expenditure for a set period of time.

Children (Education and Care Services) National Law (NSW) No 104a of 2010: Legislation in NSW that sets the standard for children’s education and care.

Children (Education and Care Services) Supplementary Provisions Regulation 2011: Aims to enhance the quality, safety, and accountability of education and care services for children in New South Wales.

Childcare and Economic Opportunity Fund Board: The Childcare and Economic Opportunity Fund (the Fund) is established under the Childcare and Economic Opportunity Fund Act 2022. The Fund Board is a statutory body with responsibility for developing strategic investment plans for the Fund, and for the administration of Fund programs, with the support of the NSW Department of Education, under a memorandum of understanding.

Contracted provider: Approved provider entering into a funding agreement to implement the successful proposed initiative for the ECEC Flexible Initiatives Trial.

ECCMS: The Department of Education’s Early Childhood Contract Management System.

ECEC: Early childhood education and care.

Evaluation: Ongoing monitoring, including the use of surveys and performance indicators and metrics to inform decisions about whether to start, continue, expand or stop an initiative.

Flexible initiative: Any change to a service’s ordinary ECEC business delivery and operations to promote greater accessibility for families.

Funding agreement: The agreement between the Childcare and Economic Opportunity Fund Board and the successful Approved provider. The agreement outlines the terms and conditions of receiving the funding.

Funding period: A 12-month period from when the funding agreement is signed.

Major capital works: Major construction or extensive renovations that substantially change the structure of the premises.

Milestone: A milestone is a key event in your proposed initiative that must be met before you can receive the planned payment and move to the following stage of progress. Examples of milestones are DA or regulatory approval; major procurement amounts and/or recruitment of staff.

Minor capital works: Minor construction or renovations that do not substantially change the structure of the premises. This includes small-scale renovations, refurbishments or fit outs that support and are directly linked to the initiative being funded under this trial. The Flexible Initiatives Trial also has maximum caps in place for capital works funding.

Objectives: The aims of the ECEC Flexible Initiatives Trial. See Objectives.

Program governance: The systems and methods by which the program is defined, authorised, monitored, and supported. Governance includes the processes that guide a program and results in good management of a program through continuous oversight.

Regulatory Authority: The NSW Department of Education is the Early Childhood Education and Care Regulatory Authority is responsible for regulating ECEC services in NSW.

SEIFA Decile: Socio-Economic Indexes for Areas (SEIFA), Australia decile. An area-based measure that divides areas into 10 equally sized groups called deciles. Decile 1 contains the most disadvantaged areas and decile 10 contains the most advantaged areas.

Service: ECEC services cater to children from infancy to school age or 0-6 years old. Example of services include long day care childcare, occasional care, family day care, centre-based care and out of school hours care.

SmartyGrants: Grants administration system. Applicants will use this system to complete and submit their application.

Stream: There are 2 different grant streams. Stream 1 is made up of two parts – 1A flexible service delivery and 1B establishment of family day care service in outer regional, remote or very remote areas. Stream 2 is delivery of larger-scale innovative operating models through collaboration between 2 services.

The Childcare and Economic Opportunity Fund: A 10-year $5 billion fund established under the Childcare and Economic Opportunity Fund Act 2022 to improve supply of, and equitable access to, affordable quality ECEC services for NSW families and children, and support and grow the ECEC workforce, with the objective to support increased economic opportunity and workforce participation, particularly for women.