Dáil Éireann Debate, Wednesday - 17 January 2024
1317. Deputy Cathal Crowe asked the Minister for Children, Equality, Disability, Integration and Youth if his Department will fund mandatory training for the pre-school sector, such as FAR or training for the new financial reporting; and if so, if this training will be allowed to be completed during working hours, in line with schools (details supplied) [56410/23]
View answer1318. Deputy Cathal Crowe asked the Minister for Children, Equality, Disability, Integration and Youth if his Department will issue funding to early years services to cover accountancy fees for the new financial reporting requirement; and if time will be permitted to allow businesses to amend their financial year where needed (details supplied). [56411/23]
View answerI propose to take Questions Nos. 1317 and 1318 together.
On the wider issue of supports for training, my Department provides a number of funded training initiatives for early years educators. Funded CPD programmes under the National Síolta Aistear Initiative (including both introductory workshop and the Aistear and Play CPD programme), AIM training (such as EDI training, Hanen, Lámh, and the Sensory Processing E-Learning programme) and other training are fully funded and available to early years educators at no cost. In addition, DCEDIY funds the Leadership for Inclusion (LINC) Level 6 special purpose award, and participation in this is also available at no cost to early years educators. Funding is also available for staff working in services who have achieved a qualification at level 7, 8 or 9, through the Learner Fund Graduate Bursary.
To build on current funding initiatives, in December 2021 Nurturing Skills: The Workforce Plan for Early Learning and Care and School-Age Childcare, 2022-2028 was launched. Nurturing Skills aims to strengthen the ongoing process of professionalisation for those working in early learning and care and school-age childcare. In particular, Nurturing Skills commits to the provision of funded places on flexible education programmes at levels 6 to 8 for current early years educators. This Nurturing Skills Learner Fund will support upskilling and strengthen career development pathways for those working in the sector, reducing the cost to educators of undertaking further and higher education qualifications. I recently announced that this will be introduced on a pilot basis in 2024.
As the State is not the employer, the State has no direct control over levels of pay and contractual conditions in the sector, other than through legal requirements. There is now however, through the independent Joint Labour Committee process, a formal mechanism by which employer and employee representatives can negotiate pay rates and conditions of employment through Employment Regulation Orders. Among other objectives, my Department's Core Funding Scheme supports employers to meet the terms and conditions that may be set in an Employment Regulation Orders. Core Funding can also be used to introduce or improve other factors that contribute to high-quality practice, such as non-contact time.
On the particular issue raised with regard to financial returns, providers that had an active Core Funding Contract during the 2022/2023 Programme Year must provide validated Financial Returns as per their Core Funding Partner Service Funding Agreement.
It would not be feasible to receive different types of reports, at different times of the year, covering different time periods, as there would be no consistency in the information provided. Therefore, a sector specific set of nominal codes provides the necessary consistency of inputs, and the reporting period of September to August provides the necessary consistency of reporting period and is in line with the funding year.
Financial transparency and the data obtained through financial reporting is crucial for informing future investment under Core Funding, likely to reach €331 million in Year 3. The dates of the programme year for the financial reporting period are essential for comparative and analytical purposes.
This requirement was noted in the recommendations of the Expert Working Group in the Partnership for the Public Good (PfPG) and encapsulated in the Core Funding Partner Service Funding Agreement, which includes reference to reports on the analysis of the data collected through the Financial Report that may be published on an aggregate and unidentifiable basis by the Department and/or Scheme Administrator.
Understanding the cost drivers of the sector is a paramount requirement to ensure that policy and the allocation of funding is underpinned by the best data, which will provide open and transparent understanding of the different operational models across the sector.
Financial reporting requirements in this transitional phase have been significantly simplified and streamlined. Specifically, in this transitional phase, the financial reporting requirement is for an income and expenditure report based on a significantly reduced set of Core Funding Chart of Accounts nominal codes.
The Transitional Phase refers to the reporting requirements for Year 1 and Year 2 of Core Funding. The deadline for submission of returns for year 1 has also been extended to 22 March 2024. My Department will, in exceptional circumstances, accept a draft income and expenditure report by this deadline, however a validated income and expenditure report will be required before services contract for year 3 of Core Funding.
My Department recognises that some services may not currently use accountancy packages, therefore, in order to support such services, an optional Financial Management Tool has been also designed.
The revised reporting template and a set of FAQ are currently available on the HIVE. My officials are also working on other supports for providers in preparing and submitting these returns, including training supports and targeted financial supports for those that may need it.
My officials will continue to engage with members and nominees of the Early Learning and Childcare Stakeholder Forum (ELCSF) on this and have committed to continued engagement on future development to the financial reporting requirement under Core Funding from year 3 of the scheme.
Special supports are available from my Department where a service is experiencing financial difficulty or has concerns about their viability, accessed through local City or County Childcare Committee (CCC). This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, as well as more specialised advice and support appropriate to individual circumstances.
I would encourage any service experiencing financial difficulty and who would like support to contact their City/County Childcare Committee (CCC) to access case management supports.
