Background
About the scheme
The Government funding scheme launched in 2022 for early learning and childcare is called: Core Funding.
- Core funding is an opt-in grant scheme provided directly to Early Learning and Childcare service providers by the Department of Childcare, Equality, Disability, Integration (the Department).
- Grants are to assist with operating costs and are designed to improve affordability for families, quality in services and sustainability for providers.
- Applications are made via the Early Years Hive website and associated financial returns must be submitted by a professional accountant.
- The scheme has certain conditions that must be met by providers including fee restrictions and fee freezes.
Core Funding is administered by the Department.
Who can avail of the grant
Community and privately owned early learning and childcare services (including certain childminders) who offer full-time, part-time or sessional childcare and who are registered with Tusla can apply for the scheme. Providers are a mix of large chains or small community-based organisations and childminders.
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Submitting returns
Online submission
Hive, the dedicated application website, includes detailed instructions and guidance documents regarding financial reporting requirements for the grant application process.
Timing
Accounts must be prepared to the year ended 31 August. Financial returns must be submitted within 6 months of the relevant year end.
The financial return for the year ended 31 August 2025 (Year 3: 2024/2025) must be submitted by the 28 February 2026 And the web portal for uploading these applications will be available shortly.
Changes from previous years
The application process has been evolving over the years. For Years 1 and 2 of Core Funding (the 2022/2023 and 2023/2024 programme years), transitional arrangements were in place with reduced requirements. For these years, the requirement was to complete and return an Income and Expenditure Template, which covered the period from 1 September to 31 August for each of the respective programme years.
Current year
For year 3 (2024/2025) onwards the requirement is for accruals-based accounts and a full trial balance. The trial balance must be uploaded by the accountant using the nominal ledger codes/chart of accounts provided on the Early Years Hive website.
There are instruction videos and guidance documents on this website.
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Accountants' role
The Department requires that the financial returns which accompany the grant application must be submitted by a qualified professional accountant.
The accountant can be an employee of the provider (if certain conditions are met ) or an independent qualified accountant who holds a practicing certificate and professional indemnity insurance.
In-house accountant
In circumstances where there is an external auditor and they are not submitting the financial returns a qualified accountant employed by the childcare service provider may make the submission using the self-submission functionality on the reporting system. The childcare provider must also complete an External Auditor Details form, which will be available for download from the Hive.
External accountant in practice
The Department has issued Guidance notes and members should refer to guidance documents issued by Chartered Accountants Ireland.
TA 06/2023 Grant Claims and the International Standard on Related Service ISRS 4400 (Revised) Agreed-Upon Procedures Engagements give guidance on engagement acceptance and continuance and some general advice on agreeing the terms of engagement. An appropriate letter of engagements should always be in place for engagements.
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Considerations for auditors
Where you are engaged as an auditor for the service provider there are additional matters to consider.
Where an accountant is the statutory auditor, the Ethical Standard for Auditors (Ireland) applies.
Section 5.132 prohibits audit firms from providing accounting services that involve management roles or initiating transactions.
Key extracts from the Ethical Standard for Auditor (Ireland):
- Non-audit services shall not be provided that involve playing any part in management decision-making
- The firm shall not accept engagements where it is probable that a reasonable third party would conclude the firm is playing a management role.
- Accounting services must be routine or mechanical in nature, requiring minimal professional judgment.
Auditors should familiarise themselves with the standard and in particular Sections 1.27, 5.31, 5.131, and 5.132.
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