The NDIS Quality and Safeguards Commission have recently announced audit updates which will benefit some service providers. There have been some teething issues with the audit process as states move to the national scheme. Thankfully, the NDIS Commission has listened to service providers' concerns. The Commission has made two major updates to audits. The first ensures a proportionate approach, to audits and the second addresses the scope of audits.

The first updates focus on ensuring a more flexible approach to audits. The updates focus on audits for individuals and small businesses delivering low-risk services and supports. The updates are more likely to apply to providers who are required to undergo a Certification Audit. These changes are positive because they will help reduce costs for some service providers, especially smaller ones.

The updates will:

• Give flexibility on the number of auditors who attend site inspections and interviews as a part of a Certification Audit

• Give flexibility on the minimum time required to undertake a Certification Audit for small businesses

• Allow auditors to conduct a stage two audit remotely in some cases. Possible reasons include:

  • The provider is small

  • Supports being delivered are not complex

  • The provider operates in remote areas or from virtual sites

  • The provider delivers supports with limited participant interaction

• Require some providers to only undergo a surveillance audit every three years. These providers include:

  • Those who are registered for specialist disability accommodation only

  • Providers who are an individual or partnership and registered for early intervention supports for early childhood only

  • Providers who are a body corporate and all of the provider’s registration classes require an assessment by verification

The NDIS Commission has also reviewed feedback on the scope of audits, in regards to ‘Early Childhood’ and ‘Therapeutic Supports.’ There were concerns about the scope of audit generated by the Commission’s system. The system was requiring a full Certification Audit for individuals or partnerships delivering this combination of supports. The corrected scope of audit will now include the completion of the Early Intervention Supports for the Early Childhood Module (as Module 3), certain components of the Core (Module 3a) and the four standards that are applicable to Therapeutic Supports.

These audit changes are already being taken into account by auditors and are recognised in the NDIS Commission’s system. If you have already received a quote for your audit, it should be updated to reflect these changes. If your audit is in progress or you paid in advance, it is worth speaking to your auditor.

These audit changes are positive as they will make the audit process easier for some providers. They will reduce the cost of audits for smaller service providers. Overall it is great the NDIS Commission is listening to the concerns of providers, and are willing to make changes to the NDIS. If you are looking for more information on the type of audit required for registration groups, look at our blog ‘NDIS Registration Groups Explained.’

From 1 January 2020, further changes will apply to the NDIS audit process.

• Companies registering for lower risk groups will be eligible to be assessed under the Verification audit. Currently, all companies must be assessed under the Certification audit.

• Providers who qualify for a Certification Audit assessment are eligible for a mid-term audit.

The mid-term audit will commence no later than 18 months after the beginning of their period of registration.

This does not apply to:

• Sole traders and partnerships

• Providers registered for only Module 3 (Early Childhood Supports) or Module 5 (Specialist Disability Accommodation)

• Transitioned providers.

Updated 9/12/19

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