Dáil Éireann Debate, Wednesday - 26 July 2017
1456. Deputy Michael Harty asked the Minister for Children and Youth Affairs if her attention has been drawn to the problems encountered by many small child care providers that do not have the resources to deal with the complicated administrative rules for the operation of child care payments; and if she will make a statement on the matter. [36088/17]
View answerThe funding provided by the Department has always been intended to be sufficient to cater for all of the costs associated with the child care schemes funded, including administrative or "non-contact" work, or to fund this pro-rata where the Department's contribution is a part of the total cost of care provided.
Notwithstanding this, to take account of the additional administrative burden on child care providers as a result of significant changes to the child care schemes in 2016-17, including the expansion of the ECCE scheme to include three intake points, contractual changes, and the coming into force of the Child care Regulations, I provided some €14.5m in 2017 to be drawn down as a "non-contact time" payment for providers. I have also secured an additional once-off payment of €3.5m in respect of the More Affordable Child care measures being implemented by providers from this September.
With regard to the necessity of administrative demands on providers, whilst my Department is seeking to minimise the red tape or burden on providers, it is important that appropriate governance and compliance standards are met where Exchequer funding is being used.
The various child care schemes were introduced some years ago on an administrative basis, in response to immediate, identified needs. They were put in place within very short timescales, with limited resources to manage them to today’s standard of financial and administrative compliance. The schemes have benefited tens of thousands of families, helping parents to seek training and employment in circumstances where they would otherwise have been unable to work outside the home. They have also benefited children by providing early care and education.
Many of the services that have been funded are operated by small, locally based providers, and some are overseen by voluntary boards, which would not have the resources or expertise for extensive financial or administrative procedures. With this in mind, my Department has always tried to balance the need for straightforward rules and reasonably simple procedures with the requirements of financial accountability in using taxpayer’s money. Working with community and voluntary organisations and a range of small to larger private services has enabled my Department to reach vulnerable children and families, most in need, all around the country.
My Department has been working for some time to ensure appropriate financial and administrative compliance in the use of child care investment, balanced with sufficient flexibility to enable small local providers or not for profit organisations to meet important needs of young families.
Many of the financial and administrative issues arising will be addressed when the Affordable Childcare Scheme (ACS) is put in place on a statutory basis, replacing the existing administratively based schemes. I am committed to introducing the ACS as soon as possible, and am working on the legislation, business processes and ICT system necessary for a robust well-functioning scheme. The new single scheme should be administratively less complex for providers, whilst strong on governance and compliance requirements to protect exchequer investment.
In advance of the ACS, my Department has taken a number of important steps. It has:
- Put significantly increased staffing resources in place to put the schemes on a more robust footing
- Revised grant agreements with providers, strengthening provision of financial reporting
- Prepared improved scheme rules which were published this week to accompany the schemes, giving greater clarity about providers’ record keeping and reporting responsibilities
- Commenced the commissioning of work to review, refine and implement governance and financial accountability capacity within the EY sector
- Increased the number of unannounced visits by Pobal (which operates the schemes on behalf of the Department) especially in areas of particular concern and compliance: and
- Ensured a substantially expanded compliance programme by Pobal since 2016.
My Department has sought to balance administrative, governance and compliance demands on providers with supports such as the non-contact payments, support from the 30 City and County Childcare Committees across the country, and other quality initiatives.
Managing the administrative burden on providers, whilst meeting governance and compliance requirements, is an important and complex task for my Department. We will continue to prioritise this work so that the needs of local communities are met while value for public money is assured.
