Changes to the NDIS Audit Requirements - 1 Jan 2020
From 1 Jan 2020, changes have been made to the NDIS (Provider Registration and Practice Standards) Rules 2018.
By far, the biggest change to the legislation is the reduction of the registration burden for businesses that are set up as a body corporate (companies) who are offering low risk supports.
Instead of having to undergo a Certification Audit, these companies can now undergo a less costly and onerous Verification Audits.
There have also been some changes to the way that a ‘worker’ is defined as well as to the surveillance audits.
Our Latest Webinar covers exactly what you need to know about Audits in 2020:
Changes in the NDIS Audit Requirments for future NDIS Registrations and Renewals
- All businesses (including company structures) offering low risk supports only: VERIFICATION Audit
- All businesses offering high risk supports: CERTIFICATION Audit
- Sole traders/partnerships offering Therapeutic Supports & Early Childhood Supports: MODIFIED CERTIFICATION Audit
What is classified as a Low-Risk Support?
- Accommodation / tenancy assistance
- Assistive Products for Personal Care and Safety
- Personal Mobility Equipment
- Assistance with Travel / Transport arrangements
- Vehicle Modifications
- Home Modifications
- Assistive Equipment for Recreation
- Vision Equipment
- Community Nursing Care
- Innovative Community Participation
- Specialised hearing Services
- Household Tasks
- Interpreting and Translation
- Hearing Equipment
- Assistive products for Household Tasks
- Communication and Information Equipment
- Exercise Physiology and Personal Training
- Management of funding for supports in participant plans
- Therapeutic Supports
- Specialised Driver Training
- Assistance Animals
- Hearing Services
- Customised Prosthetics
What is classified as a High-Risk Support?
- Assistance to access and maintain employment or higher education
- High Intensity Daily Personal Activities
- Assistance in Coordinating or Managing Life Stages, Transitions and Supports
- Assistance with Daily Personal Activities
- Specialist Positive Behaviour Support
- Assistance with Daily Life Tasks in a Group or Shared Living Arrangement
- Development of Daily Living and Life Skills
- Early Intervention Supports for Early Childhood
- Participation in the Community, Social and Civic Activities
- Specialist Disability Accommodation
- Specialised Support Coordination
- Specialised Supported Employment
- Group and Centre Based Activities
Changes to Surveillance Audits
For those businesses undergoing Certification audits, there is a change to the frequency of the surveillance audit. Previously these were to be conducted annually – now they can be conducted every 18 months which would mean just one mid-term audit would be completed each cycle.
Changes to the Definition of 'Worker'
Previously, the legislation defined a worker as ‘a person employed or otherwise engaged by a registered NDIS Provider’. This may mean you need to adjust the number of workers that you report in your online application.
The new wording has much more detail, describing the worker as:
- A person employed or engaged by a registered provider
- A partner (of a partnership that is NDIS registered) whose role it is meets the definition of a Risk Assessed Role
- An individual whose role meets the definition of a Risk Assessed Role
Other changes from 1 January 2020
Giving the Commissioner notice of changes in your business
Providers must notify the NDIS Commission of the following changes and can use the NDIS Commission Portal to do this:
- changes in your contact details
- changes in the services or supports offered including changes to geographical areas
- changes in locations from which you are providing supports (existing and new)
- significant increase or decrease in the number of Participants
- significant increase or decrease in the number of workers
Giving the NDIS Commissioner notice of changes in events
Providers need to notify the NDIS Quality and Safeguards Commissioner of certain changes and events, especially those which substantially affect your ability to provide the supports and services you are registered to provide.
There will be an NDIS Commission form to submit (available from 1 January 2020), and requires notification of the events that:
- affects your ability to comply with conditions of registration
- a change that adversely affects access by a person with a disability to the supports that you provide
- an adverse change in your financial capacity to provide any of the supports that the business is registered to provide
- significant governance changes
- if any of your business or workers are under an investigation (see legislation for list)
Compare this to current NDIS AUDIT Requirements
The NDIS Commission launched in July 2018 with a new registration process for any business wishing to register as an NDIS Registered Provider.
There were essentially 2 main pathways: Verification and Certification with providers having to provide evidence that the business was meeting relevant outcomes from the NDIS Practice Standards.
Verification required evidence to be supplied proving that a business was complying with just 4 outcomes from the Practice Standards.
Referred to as a 'desktop audit', providers would submit evidence electronically to auditors and would be checked once every three years by an auditor.
Businesses who qualified for this pathway would be sole traders and partnerships who only planned to deliver supports that had been determined to be low risk and the cost of this audit was reasonably small.
Certification required evidence to be supplied proving that a business was complying with a minimum of 22 outcomes (and possibly more) from the NDIS Practice Standards.
This would be checked annually by an auditor who would conduct the audit in 2 stages: the first at their desktop with documentation received electronically and the second at the business premises, involving interviews with clients and staff. The cost of this audit depended heavily on the number of NDIS Participants reported and began at several thousand dollars.
All businesses set up as companies, or any business offering high risk supports would be required to follow this Certification pathway.
Our partners in helping NDIS registered providers are PQplus.
They can help you identify the changes in the NDIS Audit legislation and how it affects your organisation.
They can explain the Worker Screening process and provide Risk Assessment tools.
A Quality Management System is more than policies. PQplus supply the forms and tools you need and they'll explain how to use them to stay on track for audits.
- Registered NDIS Provider notice of changes and events
- Unpacking the Worker Screening Database
- NDIS Quality and Safe Guarding Updates
- NDIS (Provider Registration and Practice Standards) Rules 2018
- NDIS (Provider Registration and Practice Standards) Amendment (2019 Measures No. 1) Rules 2019
- Changes to the National Disability Insurance Scheme (Provider Registration and Practice Standards) Rules 2018