However, the London Borough of Haringey has suspended free entitlementfunding for the school in Tottenham until it receives proof that alllinks with the Hizb ut-Tahrir group have been severed.
Haringey is one of the pathfinder local authorities for the extension ofthe nursery education grant to 15 hours.
During a Prime Minister's Questions session last week, Tory leader DavidCameron claimed that both schools, which are run by the IslamicShakhsiyah Foundation, had received 113,000 of Government money,some of which came from a pathfinder scheme, Preventing ViolentExtremism.
It later transpired that Mr Cameron had confused the name of the schemewith the pathfinder funding for the free entitlement.
Mr Cameron alleged that the schools were 'a front' for Hizbut-Tahrir.
Schools secretary Ed Balls hit back at a series of allegations made byshadow schools minister Michael Gove that the schools in Tottenham andSlough had not been properly inspected and registered by Ofsted.
He also refuted Mr Gove's claim they had made 'inappropriate use ofpublic funds'.
In a letter, Mr Balls said that the schools were entitled to receiveearly years funding.
He said that after the allegations were made, officials from Haringeyvisited the Tottenham school to make sure the early years provision metthe standards of the Early Years Foundation Stage.
Mr Balls wrote, 'The investigation found no evidence to suggestinappropriate content or influence in the school. Furthermore, Iunderstand the school has written to state that it no longer has anylinks with any of the individuals who are alleged to have connectionswith Hizb ut-Tahrir.'
Both schools had trustees who were, until recently, members of the groupor married to a prominent member.
Haringey Council confirmed to Nursery World that over the last threefinancial years, the school had received 102,000 in total for thefree entitlement.
A spokesman for the council said, 'An investigation was launched on 26October immediately after concerns were raised.
'Funding was also immediately suspended pending the outcome of thatinvestigation, which is now almost complete.
'We visited the school at the earliest opportunity to make sure theearly years provision continues to meet the requirements of the EarlyYears Foundation Stage framework. No evidence was found to suggestinappropriate content or influence in the school.
'The school wrote to us on 20 November stating that it no longer has anylinks with any of the individuals who are alleged to have connectionswith Hizb ut-Tahrir.
'We are waiting for evidence from the school that the reportedconnections have been completely severed. The school is taking steps tomake sure pupils learn about different cultures and traditions. One wayin which it is doing this is through joint work with a local Church ofEngland primary school.'
