Directory and Funding Agreement 2014 2017 Sample

Directory and Funding Agreement 2014 2017 Sample



THIS AGREEMENT is made on the day of 2014


(1)THE LONDON BOROUGH OF HAVERING Town Hall, Main Road, Romford

RM1 3BD. (“the Local Authority”) () and

(2)[insert the Provider Name and address] (insert email address for provider)

Ofsted URN[insert EY number] (“the Provider”)


(1)Section 7 of the Childcare Act 2006 places a duty on the local authorities in England to secure free early years provision for eligible children in their area who are under compulsory school age for up to 15 hours per week, for a maximum of 38 weeks per year until those children reach compulsory school age.

(2)In accordance with Section 7 of the Childcare Act 2006 the Local Authority has agreed to make payment to the Provider to enable it provide Early Education Entitlement for children between the ages of 2 and 4 years old.

(3)This Agreement sets out the terms and conditions under which the Funding is to be paid to the Provider.

(4)These terms and conditions are intended to ensure that the Funding is used for the purpose for which it is awarded.

(5)The Local Authority is required to keep an up to date Directory for all Providers providing childcarewithin the London Borough of Havering who are eligible to claim funding for the provision offree early education entitlement (EEE) places, that is, deliver funded early education through early yearsproviders who deliver the full early years foundation stage (EYFS) and are either registered with Ofsted as early years providers, or are schools taking children aged three and overand therefore exempt from registration with Ofsted as early years providers.


In this Agreement the following terms shall have the following meanings:

Ofsted / Office for Standards in Education, Children’s Services and Skills.
PVI / the Private, Voluntary, Independent Schools, Pre-Schools and Private Nurseries in the London Borough of Havering.
DfE / Department for Education
The Directory
Early Education Entitlement (EEE) / Electronic database of Ofsted registered providers maintained by the Local Authority. This information is regularly updated through information received directly from Ofsted and by Providers themselves
The free early education that parents of 2,3 and 4 year old children are entitled to, namely up to 15 hours per week at a maintained, independent, private or voluntary provider
Early Educational Entitlement (EEE) – Free Places for 2, 3 and 4 Year Olds – A Detailed Guide for Providers
Early Years Foundation Stage (EYFS) / The currentLocal Authority guidance for providers on the provision of free early education placesfor two,three and four year olds made available via
The statutory standards and curriculum framework that all early years providers must meet.
Bribery Act / The Bribery Act 2010 and any subordinate legislation made under the Act from time to time together with any guidance or codes of practice issued by the relevant government department concerning legislation.
Outstanding standard / A standard equivalent to an outstanding Inspection Judgement issued by OFSTED following an inspection.
Goodstandard / A standard equivalent to a Good Inspection Judgement issued by OFSTED following an inspection.
Satisfactory/requires improvement standard
Inadequate standard
The Statutory Guidance / A standard equivalent to a Satisfactory/Requires Improvement Inspection Judgement issued by OFSTED following an inspection.
A standard equivalent to an Inadequate Inspection Judgement issued by OFSTED following an inspection.
The Statutory Guidance for Local Authorities on the Provision for eligible 2, 3 and 4 year olds – “Early Education and Childcare Statutory Guidance for Local Authorities September 2013” or any guidance which supersedes this, available at


Agreement Period

  1. This Agreement shall remain in force until 31 March 2017 unless the Agreement is terminated as set out in the Termination section below.

2.1Offer free Early Education Entitlement (EEE) at premises within the London Borough of Havering.

2.2Provide all data and information to the London Borough of Havering as in the Local Authority’s opinion is reasonably required to support the Local Authority’s duty to ensure the proper use of public funds.

2.3Comply with all relevant statutory duties and guidanceincluding the Statutory Guidance which is currently in force. By signing this Agreement the Provider acknowledges that they understand the Statutory Guidance described and will meet the requirements therein.

2.4Have available a free at point of delivery offer i.e. the Provider will not charge parents for any part of the minimum free entitlement, either directly or indirectly. The provision must be free at point of delivery. For the sake of clarity, the Provider can charge for hours taken over and above the free EEE and other additional services; however, parents should not be required or expected to take up additional hours or services in order to access a free place. Arrangements for charging for additional services should be clear and transparent and invoices should indicate these charges appropriately and clearly.

2.5 Ensure that all documentary evidence to support a claim including proof of child’s age and parental declarations are collected from the parent before the EEE is provided and to supply the same to the Local Authority when requested by the Local Authority to do so within the specified time scales in order to ensure timely payment and to satisfy audit requirements.

2.6 Satisfy themselves that claims made for individual children do not exceed the maximum entitlement. Where a provider is notified by the parents or otherwise discovers that achild is attending another provider, which is also in receipt of funding, they shouldimmediately inform the Local Authority, in order that the funding is paid correctly in respect of that child. It is the provider’s responsibility to inform the Local Authority immediately a child in receipt of funding leaves their Provision.

2.7 Maintain clear and detailed records about children receiving the EEE. These should include details of children’s attendance and absence and the reasons for any absence. These records must be kept safe and in line with the Data Protection Act for a minimum of 6 years (following the last claim) in an accessibleformat so that they can be made available to the Local Authority on request.

2.8 Provide parents with clear written information about any fees or charges for additional hours or other services.

2.9 Maintain a specific bank account to be used exclusively for this provision(s). This bank account must be at least dual-signatory, unless the Provider is a sole trader or childminder. The Local Authority shall only pay funding from the London Borough of Havering into this account.

2.10 Cooperate fully with the Local Authority in relation to financial audits. This includes making copies of the accounts and records that relate to eligible children available for inspection purposes.

2.11 Advise Ofsted and keep the Local Authorityfully informed of any change to the manager or owner of the Provision or any other change that affects their provision.

2.12 Comply with any other relevant legislation e.g. Health and Safety at Work Act 1974, The Adventure Activities (Young Persons Safety) Act 1995, RIDDOR 95.

2.13 Deliver the full Early Years Foundation Stage (EYFS) in line with the principles and practice set out in the Government’s statutory framework, except where providers have exemptions from the EYFS Learning and Development requirements and where a parent wants their child to attend that provider, or where children have this exemption.

2.14 Provide inclusive services which includesappointing a Special Educational Needs Co-ordinator (SENCO) and to operate an effective inclusion policy in line with the Special Educational Needs Statutory Guidance and the Equalities Act 2010.

2.15 Provide a safe and secure environment for children and have up to date child protection and safeguarding policies and procedures in line with legislation and local and national guidelines including Working Together and the London Child Protection Procedures which are effective and robustly monitored.

2.16Jointly work with relevant qualified Local Authority staff to improve the standard of early education provided where the Provider’s setting has an Ofsted Inspection Judgement of Satisfactory/Requires Improvement or Inadequate. The Provider must comply with any instructions issued by the Local Authority such as attendance at specified training and the implementation of an Action Plan to support improvement actions identified by Ofsted.

2.17Following any Ofsted inspection, which results in an Inspection Judgement of Satisfactory/Requires Improvement, the Provider will accept assistance from suitably qualified staff of the Local Authority in order to improve the Provider’s performance to a Good Standard. The Provider must comply with any instructions issued by the Local Authority such as attendance at specified training and the implementation of an action plan to support improvement actions identified by Ofsted.

2.18 Accept the assistance and directions of the local Authority set out in 2.16 and 2.17 above within two weeks of the publication of an Ofsted report.


3.1Include the Provider into the Directory.

3.2 Subject to section 7(1) of the Childcare Act 2006, to meet its statutory duties.

3.3 Fund places for threeand fouryear old children making use of the EEE at theProvider’s establishment provided it has been rated as good, outstanding or satisfactory/requires improvement standard by Ofsted.

3.4Fund places for two year old children making use of the EEE if the Provider’s services have been assessed as good or outstanding standard, but in the case of satisfactory/requires improvement standard onlyif there is in the Local Authority’s opinion insufficient accessible good or outstanding standard provision.

3.5 Only fund the Providerif it has been newly Registered by Ofsted pending the publication of the Provider’s first Ofsted Inspection Judgement for children aged 3 and 4 making use of the EEE if the Local Authority is satisfied that the Provider can deliver the EEE for 3 and 4 year olds to at least Satisfactory/Requires Improvement standard.

3.6 Make prompt payment to the Provider of all fees due pursuant to the EEE provided all relevant documentation is received by the deadline date.

3.7 Issue theProvider with an indicative budget at the beginning of the financial year which broadly reflects anticipated participation. At the end of each financial year the Local Authoritywill adjust the budget to reflect actual levels of participation within the financial year unless the Provider requests an in-year review where changes to eligible children has a significant impact on the Provider’s financial position.

3.8 Work in a co-operative spirit with the Provider in order to promote high quality provision.

3.9 Signpost the Provider to appropriate advice, training and support for early year’s practitioners, in support of both developing the provision and the staff e.g. improving quality, developing inclusive practice, delivering a flexible free offer and maintaining sustainability.

3.10Have an appeals procedure for the Provider if funding is refused to deliver early education places.

3.11Publicise their complaints procedure so that the Provider knows how to complain if necessary.

3.12Fund the EEE using a locally determined, transparent formula – the Early Years Single Funding Formula (EYSFF).


4.1 The Provider will indemnify and keep indemnified the Local Authority from and against any and all loss, damage or liability (whether civil or criminal) suffered and legal fees and costs incurred by the Local Authority resulting from a breach of this agreement by the Provider including any act, neglect or default of the Provider’s employees or agents and breaches in respect of any matter arising from the supply of the Service resulting in any successful claim by any third party.


5.1The Provider shall effect and maintain with a reputable insurance company a policyor policies in respect of all risks which may be incurred by the Provider, arising out of theProvider’s performance of the Agreement, including death or personal injury, loss of ordamage to property or any other loss (“the Required Insurances”).

5.2 The Required Insurances referred to above include:

Public liability insurance with a limit of indemnity of not less than twenty million pounds(£20,000,000) in relation to any one claim or series of claims arising from the Service; and Employer’s liability insurance with a limit of indemnity of not less than five million pounds (£5,000,000) in relation to any one claim or series of claims arising from the Service.

5.3The Provider shall on request supply to the Local Authority a copy of such insurancepoliciesand evidence that the relevant premiums have been paid, when reasonably required.


6.1 Each party shall during the term of this Agreement and thereafter keep secret and confidential all commercial or personal information disclosed to it as a result of the Agreement and shall not disclose the same to any person save to the extent necessary to perform its obligations in accordance with the terms of this Agreement or save as expressly authorised in writing or by the other party.


7.1 The failure by either party to enforce at any time or for any period any one or more of the terms or conditions of this Agreement shall not be a waiver of them or of the right at any time subsequently to enforce all terms and conditions of this Agreement.


8.1 The Local Authority is committed to the principle of equality of opportunity and the Provider shall comply with the Equality Act 2010. The Provider shall not by itself or its agents or employees discriminate against any person on the grounds of race, gender, colour, national origin, religion, disability, age, sexual orientation or marital status nor shall the Provider permit any other person to so discriminate.

8.2 In the provision of the Service, the Provider shall at all times comply with the Local Authority’s Equal Opportunities policy and shall facilitate the effective performance by the Local Authorityof its statutory duties. The Provider shall ensure that discriminatory language or behaviour is not used either by itself or its agents.


9.1 The Local Authority shall be entitled to take all reasonable steps to monitor the performance of this Agreement by the Provider who shall co-operate fully with the Local Authority and shall provide such information as the Local Authority may reasonably require for this purpose.


10.1 This Agreement does not and is not intended to confer any contractual benefit on any person pursuant to the terms of the Contracts (Rights of Third Parties) Act 1999.


11.1 This Agreement shall be governed and interpreted in accordance with English law and the parties submit to the exclusive jurisdiction of the Courts of England.


12.1If any provision of this Agreement is held invalid, illegal or unenforceable for any reason by any Court of competent jurisdiction such provision shall be severed and the remainder of the provisions of this Agreement shall continue in full force and effect as if the Agreement had been executed with the invalid, illegal or unenforceable provision eliminated.

12.2 In the event of a holding of invalidity so fundamental as to prevent the accomplishment of the purposes of this Agreement, the parties shall immediately commence negotiations in good faith to remedy the invalidity.


13.1 Any notice to be served on either of the parties by the other shall be sent by prepaid recorded delivery or registered post to the address of the relevant party shown at the head of this Agreement or by electronic mail and be deemed to have been received by the addressee within 72 hours of posting or 24 hours if sent by electronic mail to the correct electronic mail number of the addressee.


14.1 Both parties to this Agreement warrant that they have power to enter into this Agreement and have obtained all the necessary approvals to do so.


15.1 Any breach of the following obligations will be deemed a fundamental breach which may terminate this Agreement immediately.

15.1.1 If the Provider ceases to be registered with Ofsted. The Local Authoritywill in this event require the Provider to repay any funding which may have been paid to the Provider which relates to the period after the date the Provider ceases their registration with Ofsted, and may require the Provider to repay all of the funding paid to the Provider for the term in which Ofsted registration ceases.

15.1.2 Execution against the Provider or the making by the Provider of any composition or arrangement with Creditors, or being a company, the Provider’s liquidation.

15.1.3In relation to any Agreement with the Local Authority, the Provider or any person employed by the Provider or acting on the Provider’s behalf shall have committed any offence under the Bribery Act 2010 or shall have given any fee or reward the receipt of which is an offence under the Local Government Act 1972 Section 117(2).

15.1.4 In relation to any Agreement with the Local Authority, the Provider or any person employed by the Provider or acting on the Provider’s behalf shall have committed any offence under the Bribery Act 2010 or shall have given any fee or reward the receipt of which is an offence under the Local Government Act 1972 Section 117(2).

15.2In the event that the Provider fails to comply with any of the provisions set out in clause 2 of this Agreement or fails to observe any obligation under this Agreement and/or fails to comply with legislation or guidance including the Statutory Guidance or fails to provide information reasonably requested by the Local Authority within a reasonable timescale to support its monitoring of this Agreement or in ensuring proper use of public funds the Local Authority will issue an improvement notice to the Provider which specifies the breach,what must be done to remedy the breach and the timescale within which the breach must be remedied. If the breach is not then remedied within the timescale to the reasonable satisfaction of the Local Authority then the Local Authority may terminate this Agreement on giving 14 days written notice and the Provider shall repay to the Local Authority all the funding paid to the Provider for the period after the improvement notice was issued.