Overview. Early Childhood Education and Care Grants Program

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1 Overview Early Program The Early Program Overview is intended to inform the NSW early childhood education and care sector about the funding assistance that is available from the NSW Department of Education and Communities (the Department). It provides a current overview of the grants programs, relevant performance measures, data collection requirements and service standards and guidelines. Program Guidelines are available for each grants program 1 and contain details of service provider eligibility, information about how funding allocations are determined and monitoring and review requirements. Specific details of funding arrangements for each organisation will be set out and agreed in the Funding Specification. 1 The only exception is the Sector Development Grants Program which has individual Memorandums of Understanding with each of the six recipient organisations.

2 Early childhood reform and grants programs and the policy and legislative framework A program of early childhood reform was agreed nationally in The National Early Childhood Development Strategy, Investing in the Early Years (the strategy), developed under the auspices of the Council of Australian Governments (COAG), is a collaborative effort between the Commonwealth and the state and territory governments to ensure that by 2020 all children have the best start in life to create a better future for themselves and for the nation. This reform program is ongoing and is likely to result in changes to the Early Childhood Education and Care Grants Program over the next few years, to ensure an optimal match between the Governments financial support for the sector and early education outcomes for children. Under the National Partnership Agreement on Universal Access to Early Childhood Education (the Agreement), all Australian Governments reaffirmed their commitment to maintain Universal Access to quality early childhood education program(s), with a focus on improved participation of vulnerable and disadvantaged children, and in a manner that meets the needs of children, parents and communities and ensures that cost is not a barrier to participation. The Early Program is designed to directly contribute to these goals. More specifically, in March 2013, the Government released the recommendations of the independent review of NSW Government funding for early childhood education, along with the Government s response. This response includes the development of a new Preschool Funding Model to fund community preschools. The NSW Government s decision to target support for preschool access to children in their year before school is consistent with national and State plan targets for universal access to preschool. The Preschool Funding Model which came into effect on 1 January 2014 was based on Professor Deborah Brennan s recommendations for a fairer preschool funding model designed to put more money into the sector from 2014 and better support increased preschool access by children in their year before school. The National Quality Framework Most early childhood education and care services in Australia are regulated under the National Quality Framework (NQF). The NQF is given effect in New South Wales through the Education and Care Services National Regulations made under the Children (Education and Care Services) National Law (NSW) This legislation aims to ensure the safety, welfare and well-being of children who attend children s services, set minimum standards for those services and ensure that people who work in children s services are appropriately screened. The National Law and Regulations cover areas such as the qualifications of staff who work in services, the design and size of a service, the ratio of staff to children, the physical requirements of buildings and equipment, the health and safety of children, and various administrative requirements. NSW Department of Education and Communities The Department has responsibility for regulation of, and funding support for, the early childhood education and care sector in New South Wales. Its Strategic Plan states that All children will receive high quality early childhood education and care to give them a great start in life and at school. This goal is consistent with the Government s NSW 2021 target of ensuring that all children have access to early childhood education in their year before school. Any changes to the Early Childhood Education and Care Grants Program will be communicated to the sector well in advance, and will be reflected in this document and in the relevant Program Guidelines, as well as in the Terms and Conditions and Funding Specifications. NSW Government support for early childhood education and care There are a number of reasons why the NSW Government supports early childhood education and care, including evidence of the benefits of quality early childhood education and care for children and the community. Early access to and participation in high quality education provides the foundations for long-term social and economic success. One in four children in remote and very remote areas may not be accessing early childhood education in the year before school. National data from the Australian Early Development Index (AEDI) show that when starting school, about one in three children in remote and very remote communities are developmentally vulnerable on one or more domains, compared with one in five children from metropolitan areas. 21 There is substantial and growing evidence that highlights the value of a sound developmental experience during the early years. It is during these years that cognitive skills are integrated with emotional and social skills, to build a solid platform for future individual development and life-long learning. Benefits identified from participation in prior to school programs include outcomes for children (improved cognition, health and behaviour) and outcomes for society (reduced expenditure on welfare, health, special education and criminal justice). The opportunity to have quality interaction at an early age through a structured program is seen to be particularly beneficial for disadvantaged children. Best 2. Rural and remote education A blueprint for action, NSW Education and Communities 2013

3 Start 32 results show that almost 90 per cent of children who have attended early childhood education are more confident with language and literacy a rate 20 per cent higher than children with no early childhood education. Early childhood services are also effective in ensuring that children make a positive transition to school. Research indicates that children who make a smooth transition from preschool are more likely to be socially competent and achieve better results in school. State and Commonwealth roles Funding for early childhood education and care in NSW can be complex and is funded from a mix of State and Commonwealth investment. Traditionally the Commonwealth has responsibility for workforce participation and supports parents to return to work primarily through the Child Care Benefit and Child Care Rebate, available for Australian Government approved care, and which excludes most stand alone community preschools. The State has responsibility for education, including early childhood education, and provides funding subsidies primarily to community based preschools to support access to early childhood education in the year prior to school. The State also regulates the early childhood education and care sector in accordance with the National Quality Framework (NQF). The National Partnership Agreement on Universal Access to Early Childhood Education and the National Partnership Agreement on the National Quality Agenda for Early Childhood Education and Care provide Commonwealth funding to the State to deliver its responsibilities for early childhood education and regulation. Program description Grants Program currently consists of seven grants programs. The Preschool, Long Day Care, Occasional Care and Vacation Care Programs support direct delivery of early childhood education and care services by not-for-profit providers. The Early Childhood Projects 3. For more information on Best Start, go to: www. curriculumsupport.education.nsw.gov.au/beststart/ information/index.htm Grants Program supports specific early childhood related projects, the aim of the Supporting Children with Additional Needs (SCAN) Program is to improve access to funded preschools for children with additional needs; and the Sector Development Grants Program, which is delivered by sector peak bodies, provides tools and support for all services with a special focus on Government priorities and national quality standards. The number, nature and configuration of grants programs in the Early Childhood Education and Care Grants Program may vary over time and are subject to change. Specifically, fixed-term grants programs may be added to the Early Childhood Education and Care Grants Program (for example, for capital works). A brief description of all seven current programs is included below. For a full description, please see the Program Guidelines for each specific program. 43 Preschool Grants (the Preschool Funding Model) Preschool grants are available for notfor-profit, community based providers of preschool services. A preschool service is a National Quality Framework (NQF) approved early childhood education service provided either at fixed premises 4. The Sector Development Grants Program does not have program guidelines, rather, an individual memorandum of understanding was developed for each of the six funded organisations. or as a mobile service (for example, in remote areas where a permanent service may not be viable). Mobile preschool services will have a separate definition and will be covered under separate Funding Agreements from 2014/15 in acknowledgement of this unique form of service delivery. From January 2014, to be eligible for preschool funding, a child will need to be either: at least 4 years old on or before the 31 July in that preschool year and not yet in compulsory schooling; or at least 3 years old on or before 31 July and from a disadvantaged background (ie from a family holding a low-income Health Care Card and/or is Aboriginal). The service is generally provided in line with school terms and operating hours. The short hours of operation mean that this service model is generally not approved to offer the Commonwealth s Child Care Benefit subsidies. Long Day Care Grants A Long Day Care service is an early childhood education and care service approved under the Education and Care Services National Regulations generally operating for at least 8 hours per day during at least 48 weeks per year. The target group consists of children from birth to the age of 6 years. Typical staffing arrangements are as per National Quality Standard requirements. Long Day Care service providers are generally

4 approved to attract Commonwealth child care subsidies for families (Child Care Benefit and Child Care Rebate). A limited number of not-for-profit, community based providers will be funded under this program in 2014/15. Occasional Care Grants An Occasional Care service is an early childhood education and care service approved under the Children (Education and Care Services) Supplementary Provisions Act 2011 and its 2012 Regulation to provide care on an occasional and flexible basis to enable parents or carers to leave children for short periods of time. Services generally operate for 9 hours per day, but this can vary from service to service. The target group is children from birth to the age of 6 years, with staffing requirements stipulated in the Regulation. Occasional Care service providers may be approved to attract Commonwealth child care subsidies for families (Child Care Benefit and Child Care Rebate). A limited number of not-for-profit, community based providers will be funded under this program in 2014/15. Vacation Care Grants Vacation Care is a type of outside school hours care service approved under the National Law and Regulations. Vacation care services are generally provided at fixed premises during school holidays, and provided to children who normally attend school. Vacation Care service providers are generally approved to attract Commonwealth child care subsidies for families (Child Care Benefit and Child Care Rebate). A limited number of notfor-profit community based providers will be funded under this program in 2014/15. Early Childhood Project Grants The Early Childhood Projects Grants Program aims to enhance children s early learning and developmental outcomes. The program supports early childhood education and care service providers and other community organisations to provide services such as playgroups, parent support and transition to school programs. The target group is children from birth up to the age of 12 years. A limited number of not-for-profit, community based providers will be funded under this program in 2014/15. Supporting Children with Additional Needs (SCAN) Grants The aim of the SCAN Program (Supporting Children with Additional Needs) is to improve access to funded preschools for children with additional needs. The SCAN program was reviewed in 2013 and the new Program has a single focus on children with disabilities 5 who are aged 3 to 5 years old and enrolled in an approved preschool in NSW. The Program has a strengthened focus on early childhood education, and aims to increase the ability of preschools to include children with additional needs. The SCAN funding is provided as a contribution to direct service delivery consistent with the provisions of the national law and the Children, (Education and Care Services National Law Application) Act 2010 and the Early Years Learning Framework. Sector Development Grants The six organisations funded by the Sector Development Grants Program will provide tools and support for preschool services, with a special focus on Government priorities and national quality standards. The high-level aim is for Sector Development to create a bank of resources to support services in meeting the regulatory and educational priorities of the Government. Sector Development resources will provide a platform for greater preschool service sustainability across the sector. 5. Other categories, such as ATSI and CALD, are covered in new Preschool Funding Model. Budgets and funding Grants Program is discretionary grant funding provided to approved service providers subject to the provisions of the Funding Agreement and subject to the Department receiving an appropriate annual allocation from Parliament. Currently, budget amounts for some grants programs (Long Day Care, Occasional Care and Vacation Care) are capped and new service providers are not accepted into these programs. Service provider requirements To be funded under any of the Early Program, where relevant all funded service providers must be an approved education and care service provider under the Education and Care Services National Regulations or the Children (Education and Care Services) Supplementary Provisions Regulation 2012 and the Children (Education and Care Services) Supplementary Provisions Act 2011, except for those funded providers that are not required to be an approved provider. Service providers in receipt of one or more grants under the Early Childhood Education and Care Grants Program are required to agree with and adhere to the relevant program guidelines for each of the funded programs and the Early Program Terms and Conditions.

5 Service providers must be not-for-profit, community based organisations in order to be eligible for grants under the Early Program. More details on service provider eligibility can be found in the program guidelines. Program guidelines Grants Program Guidelines provide detail on program requirements. Some key issues addressed in these guidelines are: Service descriptions and target groups Service provider eligibility Standards and guidelines, including: Priority of Access Guidelines Monitoring and review (including audit requirements, financial accountability and data collection) Grants allocation Program entry and exit. Terms and conditions All service providers are required to agree with the terms and conditions of the Early Program and with the guidelines for the relevant grants program/s to receive funding under the Early Childhood Education and Care Grants Program. The terms and conditions include, but are not limited to: Acceptance of relevant program guidelines Financial and outcomes reporting Data collection requirements Government access requirements General audit requirements Departmental audits Conditions of funding withdrawal. Funding specifications Each service provider in receipt of grants under the Early Childhood Education and Care Grants Program will be issued with a funding specification that details the outputs expected from the program and the amount of funding allocated under a certain grants program for the relevant period. For most grants programs this funding specification will be determined on an annual basis. Data collection requirements As indicated in program guidelines, terms and conditions and funding specifications, funded service providers are required to provide data to the Department according to the Department s specifications. These specifications may change from year to year, but will generally include a standard set of service delivery indicators such as service information, details about the number and demographic characteristics of children enrolled at the service, and staffing information. Key documents and more information The Early Childhood Education and Care Grants Program is guided by the following suite of documents: 1. Early Childhood Education and Care Grants Program Overview - Outlines the policy context, outcomes and key activities for the program. 2. Early Childhood Education and Care Grants Program Guidelines - The guidelines describe the purpose and parameters of the individual grants programs, including service provider eligibility, service delivery standards and guidelines and other specific requirements. 3. Early Childhood Education and Care Grants Program Terms and Conditions - This section details the general requirements to which all grant recipients/service providers must agree, including agreement to operate according to the relevant Grants Program Guideline, general data collection and audit requirements and circumstances under which withdrawal of funding may occur. 4. Early Childhood Education and Care Grants Program Funding Specification- This document provides the individual specifications, outcomes and outputs for providers in receipt of grants under a specific program. More information on the Early Childhood Education and Care Grants Program, including the key documents described in this overview, is available via the website of the Department of Education and Communities at au/ecec. For additional information, service providers and the general public can contact the Department s Early Childhood Education and Care Directorate directly: Funding Programs [email protected] Funding Programs telephone