Gloriavale will keep millions of dollars in taxpayer funding after backing down over a refusal to assign identification numbers to preschoolers.
Officials from the Ministry of Education last year visited the isolated Christian community, based at Haupiri, about 60km east of Greymouth, over its stance.
Gloriavale's leaders were told government funding for its three early childhood centres - which topped $2.4 million over a year - was likely to be at risk.
However, Katrina Casey, the ministry's head of sector enablement and support, said Gloriavale had now allocated national student numbers to all enrolled children.
"Gloriavale's funding has not been affected...we worked with Gloriavale for a number of months to address the concerns they had raised about using [the numbers]. We're pleased that Gloriavale is now using the system."