There are 2 audits carried out by the local authority:
- funding claim audit - this audit enables us to support providers with the accuracy of their funding submissions on the provider portal
- compliance audit - this audit will include checks being undertaken with further documentation, for example, a setting's register/ arrival departure records, invoices, fee structure / admissions policy / information for parents
Funding compliance audits help providers to ensure that:
- funding is being claimed in accordance with the provider agreement whilst also adhering to the Early Education and Childcare Statutory Guidance for Local Authorities
- there are fully funded places offered by providers
- the fee/charging policy is clear for parents
- parents' invoices are clear, transparent, and itemised
- funded children attend for their claimed hours/session
- the admissions policy is clear for parents
- childminders have a separate bank account for their childminding business
What happens during a funding claim audit and a compliance audit?
Most of the funding claim audits and compliance audits are undertaken remotely, however visits may also be undertaken in the setting.
Providers will be contacted by a member of the early years finance team who will explain the process, and request that the provider email copies of documentation required to undertake the audit.
Documents usually requested for a funding claim audit include:
- copies of FE1 forms for children accessing fee paying hours in addition to the funded hours
- copy of a DLA letter for children in receipt of this
Documents usually requested for a compliance audit include:
- compliance audit form - issued by the local authority; completed and signed by the provider
- copies of FE1 forms for children accessing fee paying hours in addition to the funded hours
- copies of invoices for the same children
- a copy of the setting's fee structure / admissions policy / information for parents
- copies of register/ arrival departure records for the same children, along with copies of any absences logs for the same children
- copy of a DLA letter for children in receipt of this
Providers may be asked to submit additional documents or further information as required.
Will I be notified of the outcome of the funding claim audit or compliance audit?
Following completion of the funding claim audit or compliance audit, providers will receive a report or a letter.
Where actions have been identified, these will be explained in the report and should be implemented to meet the requirements of the signed provider agreement.