To ask the Secretary of State for Children, Schools and Families whether local authorities are entitled legally to ask to inspect the financial accounts of private, voluntary and independent sector nurseries, pre-schools and day care providers relating to activities that are not directly funded by public money for free early years education places for three and four-year-olds. (148456)

The code of practice on the delivery of nursery education places for 3 and 4-year-olds is statutory guidance to which local authorities must have regard when planning and managing the delivery of the free entitlement. The code states that local authorities should put in place appropriate accounting and auditing procedures to ensure that funding paid in respect of free places is administered properly. Local authorities do so, in consultation with providers, through delegated local conditions of funding, which may in some cases require settings to provide access to accounts relating to administration of public funding. Local authorities may also ask providers for sight of their accounts in order to assess their financial viability before contracting with or providing funding to the setting. However, settings are under no obligation to comply with requests for inspection of accounts related to activity not undertaken in respect of public funding.