Early education funding (EEF) audits are carried out to ensure that:

• Funding claims are accurate - the funding claimed reflects the funded hours actually delivered to eligible children
• Providers comply with the Herefordshire Provider Agreement - ensuring all funding requirements, conditions and standards are met
• Families can access funded entitlement free of charge - confirming that parents are able to access their child's funded hours without mandatory additional fees or hidden charges

These audits help safeguard public funding, promote compliance, and ensure that funded childcare entitlements are delivered fairly and transparently.

Criteria for prioritising early education funding (EEF) audits

EEF audits may be prioritised where:

• Concerns have been identified by the EEF Team, Schools Finance Team, or Early Years Team following visits, telephone calls, or recurring issues relating to funding claims or payments
• Concerns or complaints have been raised by parents or carers regarding a provider's delivery of funded entitlements
• Providers are selected at random as part of routine quality assurance activity, subject to the capacity of the EEF Team

This risk-based approach helps ensure that funding is being claimed correctly, provider agreement requirements are being met, and funded entitlements remain accessible to families.

Documents and information required for an early education funding (EEF) audit

To enable the audit to be completed, providers will be asked to supply the following documents and information for the audited term:

• Copies of registers (daily attendance records) showing children's attendance and funded hours claimed
• Copies of all parent declaration forms relating to children accessing funded entitlement
• Copies of parental invoices, bills, or statements covering a period within the audited term
• Information about how funded entitlement is offered to families, including:
• A copy of the provider's fee structure
• A copy of the registration form and/or parent contract
• Copies of any funding-related information, policies, or guidance provided to parents and carers

These documents enable us to verify funding claims, confirm compliance with the Herefordshire Provider Agreement, and ensure that families can access their funded childcare entitlement in line with funding requirements.

Removal of early education funding

Early education funding (EEF) may be withdrawn in accordance with the early education funding policy where a provider:

• Is judged by Ofsted as 'Needs Attention', or 'Urgent Improvement'
• Fails to provide sufficient information to enable an EEF audit to be completed
• Does not comply with the Early education and childcare: statutory guidance for local authorities and/or the Herefordshire Provider Agreement
• Fails to complete the annual Early Years Census
• Fails to complete Department for Education (DfE) information surveys throughout the year
• Fails to complete mandatory Early Years surveys requested throughout the year

Removal of funding process

Where a provider receives an Ofsted judgement of 'Needs Attention', or 'Urgent Improvement', the following process will apply:

1. The Early Years Lead Improvement Advisor will carry out an EEF sufficiency assessment
2. A recommendation will be made to the Early Years Sufficiency Team and the Head of Learning and Achievement for approval
3. The provider will be notified of the decision within four weeks of the Ofsted judgement being published
4. Funding will cease from either half-term or the end of term, depending on the number of weeks remaining, ensuring the provider receives a minimum of six calendar weeks' notice
5. The EEF Team will contact families of funded children attending the setting to inform them of the decision and support them in accessing alternative funded provision where required

Termination policy

Herefordshire complies with the Department for Education's Early education and childcare: statutory guidance for local authorities and meets all mandatory requirements and recommendations within the guidance.

Funding is available only to providers who:

• Meet the required quality standards; and
• Agree to comply with the local authority's funding requirements

A provider may be removed from the childcare directory and have their funded places withdrawn where:

• They do not comply with the local authority's funding requirements;
• They fail to meet the required quality standards; and
• There is sufficient alternative provision available to meet the needs of children and families

For further information, please refer to the Termination and withdrawal of early education funding guidance.