Gerald Nash (Louth, Labour)
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1071. To ask the Minister for Children, Equality, Disability, Integration and Youth to clarify the position as it relates to the accounting and financial reporting requirements placed on private childcare providers accessing support through his Department's core funding scheme as detailed in correspondence (details supplied); and if he will make a statement on the matter. [48499/23]

Roderic O'Gorman (Dublin West, Green Party)
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All Partner Services that had an active Core Funding Contract during the 2022/2023 Programme Year must provide validated Financial Returns.

Core Funding payments to providers must run on a programme year, September-August, in line with the school year, the operation of the Early Learning and Care (ELC) and School-Age Childcare (SAC) sector, and the payments made to providers under the other DCEDIY schemes. Therefore, the financial returns cover the period from 1st September 2022 to 31st August 2023 and must be submitted by an accountant from a registered practice or a registered professional body (ACA, ACAA, CPA, and CIMA), on behalf of each Partner Service. My Department is not requesting audited accounts.

To facilitate these reporting requirements, my Department has worked collaboratively with an external consultant to finalise the nominal codes for the Core Funding Chart of Accounts and develop the Core Funding Financial Reporting template and associated financial management tool.

My Department acknowledges the increase in administration for providers with the introduction of new schemes such as the NCS and Core Funding. I have allocated €32.13 million for administration under Core Funding in year two, and €35.34m for the third year of the scheme.

In addition a number of targeted supports are being considered by my Department to enable Core Funding Partner Services to comply with the financial reporting requirement.

In any instances where a service is experiencing financial difficulty, they can reach out to their local City/County Childcare Committee and avail of Case Management Supports. This can include operational supports as well as financial supports through Sustainability Funding if deemed appropriate.

Roderic O'Gorman (Dublin West, Green Party)
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The approach to introducing Fee Management under Core Funding is guided by the recommendations of the Expert Group outlined in Partnership for the Public Good, and approved by Government. It ensures that the introduction of Fee Management to the sector is done in a sustainable and considered manner.

Specific recommendations on fee management include; the introduction of a fee freeze in the first instance, improvements to price comparability, and developments to the fee management system further to the assessment of cost data

Fee management started with a requirement of providers not to increase fees on September 2021 levels. The approach for fee management in future years will be guided by the Expert Group recommendations and may include the introduction of a common national provider fee structure and rates, and transitional arrangements such as where all fee rates would have to fall within a specified percentage tolerance range around a given rate.

The National Action Plan for Childminding 2021-2028 commits to opening the National Childcare Scheme to childminders at the earliest possible opportunity, though it will be necessary first to develop and introduce childminder-specific regulations, and to give childminders adequate time and support to meet regulatory requirements during Phase 1 of the implementation.??

Phase 1 will be completed when the exemption to registration has been removed from the Child Care Act 1991 and the childminder-specific regulations have been commenced. All childminders will then be able to register their services and provide parents with access to the National Childcare Scheme. Subject to amendment of the Child Care Act 1991 and the introduction of the new regulations, it is expected that parents who use childminders will be able to benefit from the National Childcare Scheme from autumn 2024.