7-1 Funding for new services
This section is for new ECE services. It explains:
- the RS3 Initial Application for Funding for an Early Childhood Service
- the funding process for new services
- when new services can expect their first funding payment.
The RS3 Initial Application for Funding for an Early Childhood Service (RS3 Form) is the key funding form for new services.
New services must complete the RS3 Form to receive their first ECE Funding Subsidy entitlement.
An example RS3 Form can be found in Appendix 2.
The table below describes the funding process for newly licensed services:
||The new service is licensed.|
||The new service completes the RS3 Form.|
||The new service returns the RS3 Form to their Ministry local office.|
||The Ministry calculates the service’s first payment based on:|
- the number of days the service will be open and
- the funded hours that the service will be open and
- the average number of children in each age group and the hours they are expected to attend the service during the advance period and
- the estimated percentage of regulated (ratio) staff hours that will be covered by registered teachers (teacher-led centre-based education and care services only).
||The Ministry makes an advance payment to the new service on the next available payment date.|
||The service becomes part of the normal funding cycle. Funding continues as for all services (see Section 2-5 for further details).|
Bank account details
Every funded service must have a bank account into which ECE funding can be paid.
The bank account number must be verified by two signatories on the RS3 Form and:
- a bank verification stamp on the RS3 Form or
- attaching a pre-printed bank deposit slip or
- attaching a document printed on bank letterhead with the bank account number visible, to the RS3 Form.
If a service provider operates more than one service, funding for all services will be paid into the bank account of the service provider.
All funding correspondence will be sent to the funding contact person for the service provider.
Services affiliated to a school
New services that are affiliated to, or located on the grounds of, a state or integrated school must ensure they are a separate legal entity, and have a separate management structure and bank account to that of the school.
Boards of trustees of state or integrated schools wishing to open an early childhood education (ECE) service must establish a separate legal entity for the ECE service.
A good business practice for community groups wanting to start a new ECE service (e.g. a university or church) is to open a separate bank account for the ECE service.
This keeps the financial records of the community group and the ECE service separate.
New services are eligible for funding from the day that they are licensed and operating.
Use the table below to find out when you will receive the first payment.
|RS3 Form received by the Resourcing Division
||First payment made
|on or before the 20th of the month*.
||overnight on the first working day of the following month.
||If your RS3 Form is received by the Resourcing Division on 12 August, your service will receive the first payment overnight on the first working day in September.|
|after the 30th of the month*.
||overnight on the first working day of the month after the following month.
||If your RS3 Form is received by the Resourcing Division on 21 August, your service will receive the first payment on the first working day of October.|
*Due to operational requirements, there are some exceptions to this date. Please discuss with your Ministry local office to ensure deadlines are met. Additionally, the deadline does not apply to incomplete or incorrect RS3 forms as omissions or errors may delay processing and payment.
Services should budget to ensure funds are available to cover the period between starting to operate and receiving their first payment.
Warning: to avoid overpayment of funding
- The Ministry retains the right to reduce any advance funding due to be paid to you where it deems the claimed numbers on the RS3 to be over-estimated.
- The Ministry retains the right to request proof and evidence to support the numbers claimed on the RS3 form.
- Any overpayments that occur due to over-claims on this RS3 form are repayable to the Ministry immediately.