2-4 When and how funding is paid
Introduction
Funding payments are made three times a year – on the first working day of March, July and November.
Each payment is made up of an advance for the next four months and a ‘wash-up payment’ for the previous four months.
Advance funding
ECE services receive an advance for four months. Information on initial funding for new services can be found in Section 7-1 of this Handbook. The following table explains how the advance payment is calculated:
| Stage |
Description |
| 1 |
ECE service fills in RS7 Form with:
- the number of funded child hours per day for the previous four months
- the expected number of days of operation for the coming four months.
|
| 2 |
The Ministry uses the RS7 Form data to calculate the average number of funded child hours (FCHs) per day over the previous four months for each type of FCH – Under Two, Two and Over, 20 Hours ECE and Plus 10 ECE. |
| 3 |
The Ministry multiplies the average number of each FCHs per day by the number of days the service expects to be open over the coming four months. |
| 4 |
The Ministry multiplies the average FCHs for the coming four months by the service’s funding rate. |
| 5 |
Seventy-five per cent of this total is paid as the advance payment (or 100 per cent for kindergartens). |
Advance funding exceptions
Playcentres choosing to take up 20 Hours ECE in their centres can not claim advance funding for 20 Hours ECE.
Wash-up funding
ECE services also receive a wash-up payment. The wash-up payment makes up the difference between the advance payment made in the previous funding payment and the actual funding entitlement.
| If... |
then... |
| the predicted average number of FCHs was more than the actual average number of FCHs, or the service’s funding rate has decreased |
the Ministry deducts the overpaid amount from future payments. |
| the predicted average number of FCHs was less than the actual average number of FCHs, or the service’s funding rate has increased |
the Ministry pays the extra amount with the wash-up payment. |
Actual funding entitlement
A service’s ‘actual funding entitlement’ is the amount the service is actually paid in a funding round:
advance funding ± wash-up funding = actual entitlement
Service providers
Where a service is part of an association or larger group of services, funding for that service is paid to a service provider.
If a service provider operates a number of services, the total funding for all services is paid to the service provider.
Payment to individual services is the responsibility of the service provider.
The name of the service provider will appear in the 'organisation' field of the RS7 form.
Any overpayments are deducted from the total funding paid to the service provider.
Funding cycle
Funding is paid three times a year:
| Payment in... |
is made up of the ... |
|
advance for... |
wash up for... |
| March |
March
April
May
June |
October
November
December
January |
| July |
July
August
September
October |
February
March
April
May |
November |
November
December
January
February |
June
July
August
September |
'Gap' months
Processing time means it is not possible to collect FCH figures for the month prior to each funding payment. Although the advance has been paid, there will be a delay before the wash-up payment is made for February, June and October. These months are known as the 'gap' months at the time of processsing.
Use the table above to find out when the wash-up payment for February, June or October will be paid.
Payment dates
For the exact payment dates, and dates for returning funding claim forms, see your service's Funding Calendar.
Enquiries regarding the bulk funding payment
Due to privacy laws and difficulties verifying the identity of the person calling, the Ministry of Education is no longer able to provide payment totals in advance over the telephone or via email. Advice notices are posted to services on the payment date.