Annex D (ii) - Part 1 – Finance auditing processes

The stages of the audit process is:

Stage 1 - Notification and collection of documents

• Provider is notified of an impending audit via email.
• The email will consist of a date and time for the collection of documents as well as a FEEE audit form for completion.
• Documentation collected from provider. 

Note: this stage is not applicable for unannounced audit visits

Stage 2 - Audit carried out remotely via a desktop procedure

This may also be at site by prior arrangement or for unannounced audits.

• Daily registers checked
• Parental Declaration forms checked against the headcount claim for the term for which the audit is being carried out
• Admissions criteria or policy document, fees and charges pricing structure checked
• Invoices and invoicing system checked
• Expenditure of SENIF and DAF checked
• Additionally, a sample of parents will be contacted

Stage 3 - Audit analysis checks and clarification of information 

• The provider will be contacted for clarification on queries or further information may be requested.
• Potential issues and concerns identified are recorded.
• Consultation with relevant Council officers on any finance related discrepancies that are identified.

Stage 4 - Audit summary report

• A summary report is completed, detailing information audited as well as outcomes, recommendations and feedback for the provider.
• A copy of the summary report and the completed FEEE audit document are sent back to providers, via email, notifying them of any further action needed by the Provider or by the Local Authority (LA).
• Further action: LA will deem the provider as Compliant or Non Compliant.
• If Non Complaint the provider will enter the Compliance Process as outlined in Annex D (i) (Flowchart 1).

During the Audit process

• All hard copy documents received for the audit will be sent for internal confidential shredding, unless the provider 
  has stated otherwise.
• All information provided by providers will be scanned or photographed and stored by the Council as part of the 
  audit trail.

Children claiming Funded Early Education Entitlement (FEEE)

When completing the headcount information for FEEE claims:

• Ensure the start date submitted on your headcount matches with the start date on each child’s parental declaration form.
• Confirm weeks and sessions attended by the child are correct. (Note: for children accessing 570 hours entitlement under the 51-week stretched offer model, the hours are 11.18 per week for 17 weeks and for children accessing 570 hours entitlement under the 48-week stretched offer model, the hours are 11.88 per week for 16 weeks).
• Add all children to the headcount before submitting and populate the hours as per the parent declaration form.

Enrolling New Children

When taking on new children please ensure you have:

• Checked children’s eligibility codes prior to them starting i.e., their 2 year eligibility ‘YES’ letter or confirmation of eligibility with a TYF code or their working parent codes for funding for 9–23 month olds, 2 year olds or 30 hour EE for 3 and 4 year olds
• Fully completed the parental declaration form (including eligibility codes, full start date dd/mm/yyyy, contracted sessions, weeks attending, EYPP, DAF sections etc) and ensure that the form is signed by both the parent and the provider.
• Provided parents with a copy of the completed parental declaration form. Also, if the child is moving from another provider, please check that the child’s claim dates for funding do not overlap (this will avoid double funding queries).

SEN Inclusion Funding (SENIF)

Records relating to children in receipt of SENIF will be audited for the whole term.

When claiming for 1:1 Support Hours

For SENIF that has been spent on 1:1 support hours, Providers must keep a record of the child’s attendance as outlined in Provider Agreement. In addition, the Provider must keep records of the 
adult(s) working with that child such as timesheets / signing in sheets / overtime claim forms etc.

Non-staffing Related Costs

For SENIF that has been spent on non-staffing costs, Providers must keep a record of the expenditure including a copy of the receipt or invoice paid.

Disability Access Fund (DAF)

Details of how DAF is utilised will have to be stated on the audit form, Providers must keep a record of staffing costs, as detailed for SENIF above, and of non-staffing related costs, including copies of receipt or invoice paid.

SENCO

All Settings must have a named SENCO Officer.