Childcare Funding Applications – Agreed-Upon Procedures Engagement

Childcare Funding Applications – Agreed-Upon Procedures Engagement

The Department of Children, Equality, Disability, Integration and Youth has recently issued a document called ‘Guidance Note for Core Funding Reporting Requirements Transitional Arrangements Year 1 and 2’ (“The Department Guidance Note”) to entities providing childcare and early education services. The document explains the transitional arrangements for the application for funding under a new funding model called ‘Together for Better’.  These transitional arrangements will be in place for the years ended 31 August 2023 and 2024.

Reporting Regime

This reporting regime includes a requirement that the childcare service providers (“client”) engage a professional accountant to submit a document called an ‘Income and Expenditure Template.

The following is important to note:

  • The report is to cover expenses incurred on a cash basis for the year ended 31 August 2023 and 1 August 2024.
  • The requirement is for expenditure incurred in the relevant period only, no accruals or prepayments.
  • Income will be pre-populated in the online platform.
  • Where your client has a different year end, time apportionment is not permitted.


Important considerations for Accountants

  1. The accountant relies on information provided by the Service Provider, who is responsible for disclosing all relevant information.
  2. The Service Provider/client will make an online declaration on the platform provided by the Department that they have authorised the accountant to make the submission for them.
  3. Accountants are reminded of the relevant Code of Ethics issued by their professional body as regards avoiding conflicts of interest, independence, and avoiding making management decisions (among other threats).
  4. Accountants dealing with these grant claims will need to hold a practice licence and suitable professional indemnity insurance.
  5. If the accountant is also the Statutory Auditor of the entity Section 5.129 of the Ethical Standard for Auditors (2020) (issued by the Irish Auditing and Accounting Supervisory Authority) they are prohibited from providing accounting services where the services would involve the firm undertaking part of the role of management or initiating transactions.

The accountant should also refer to the Technical Alert Guidance documents issued by Chartered Accountants Ireland at TA 06/2023 Grant Claims and the International Standard on Related Service, ISRS 4400 (Revised) Agreed-Upon Procedures Engagements, which give guidance on engagement acceptance and continuance and some general advice on arranging the terms of engagement.

Please also refer to our newly published templates in this regard for:

Both are available on our website for €60+VAT each.

For more on AML related matters go to:

For more on the whole ISQM process for audit firms, please see our ISQM 1 Toolkit on our website here.

Please go to our website to see our:

  • Anti-Money Laundering Policies Controls and Procedures Manual (March 2022) — View the table of contents
  • AML Webinar (December 2023) available here, which accompanies the AML Manual. It explains the latest legal AML reporting position for accountancy firms and includes a quiz. Upon completion you receive a CPD certificate for attendance in your inbox.
  • Letters of engagement and similar templates—Please visit our website here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items bought together.
  • ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please contact John McCarthy FCA by email at
  • We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. The ISQM TOOLKIT 2022 is available to purchase here.