Government funding is intended to deliver 15 or 30 hours a week of free, high quality, flexible childcare which meets the requirements of the EYFS. The 15 or 30 hours must be able to be accessed free of charge to all parents. There must not be any mandatory charges for parents in relation to any of the funded hours delivered.
The local authority is required by the Department for Education (DfE) to undertake funding compliance audits to ensure funded hours have been submitted accurately for all eligible children including that the claims are in accordance with the signed parent / carer declaration and attendance registers.
There are two audits carried out by the local authority:
Funding Claim Audit - This audit enables us to support providers with the accuracy of their funding submissions in accordance with the parental declaration and attendance registers / absence logs.
Compliance Audit - This audit will include checks being undertaken with further documentation e.g. invoices, fee structure / admissions policy / information for parents.
Funding compliance audits help providers to ensure that:
- funding is being claimed in accordance with the Provider Agreement whilst also adhering to the Early Education and Childcare, Statutory Guidance for Local Authorities
- there are fully funded places offered by providers for all eligible children
- the fee/charging policy is clear and easily accessible for parents
- parents’ invoices are clear, transparent, and itemised
- funded children attend for their claimed hours/session
- the admissions policy is clear for parents
- childminders have a separate bank account for their childminding business
What happens during a funding claim audit and a compliance audit?
Most of the funding claim audits and compliance audits are undertaken remotely, however visits may also be undertaken in the setting.
Providers will be contacted by a member of the early years finance team who will explain the process, and request that the provider email copies of documentation required to undertake the audit.
Documents that will be requested as part of the funding claim audit can include but are not limited to:
- completed copies of signed Parent/Carer Declaration forms
- attendance registers / absence logs
- copy of Disability Living Allowance (DLA) letter for children in receipt of this as evidence of eligibility for Disability Access Funding (DAF)
Documents that will be requested as part of the compliance audit can include but are not limited to:
- compliance audit form – issued by the local authority; completed and signed by the provider.
- copies of Parent/Carer Declaration forms for children accessing fee paid hours in addition to the funded hours.
- copies of invoices for the same children.
- a copy of the setting’s fee structure / admissions policy / information for parents.
- copies of register / arrival departure records for the same children, along with copies of any absence logs for the same children.
- copy of a DLA letter for children in receipt of this.
- Any other documents the Local Authority deems relevant for the provision of entitlements.
The provider will be contacted and asked to either send copies of the required documents by email or ensure documentation is available at the setting for the officer undertaking the checks.
The provider may be asked to submit additional documents or further information as required.
In addition to the above audits, the local authority will undertake provider / FIS website and invoice checks to ensure compliance with the DfE Statutory Guidance.
Will I be notified of the outcome of the funding claim audit or compliance audit?
Following completion of the funding claim audit or compliance audit, providers will receive a report or a letter.
Where actions have been identified, these will be explained in the report and should be implemented to meet the requirements of the signed Provider Agreement.