As new and existing service providers, understanding how to operate under NDIS compliance may often be challenging. Whether you are entering or already active in the NDIS market, knowing the differences between internal and NDIS mid-term audits is essential. Each is important in helping your organisation remain compliant, but it is possible to differentiate their purpose. Thus, this article will compare these audit types and help you determine which is right for your NDIS organisation.
What Is an Internal Audit?
An NDIS internal audit is a thorough assessment of your organisation about the NDIS standards within your workplace. For NDIS providers, an internal audit typically covers a wide range of areas, such as participant records, financial systems, staff training and general compliance with NDIS standards.
It assists the providers in detecting potential risks or weaknesses in their services before they assist individuals. Internal audits are also critical for ensuring your business remains prepared for external audits or regulatory inspections. For instance, a provider seeking NDIS registration or re-registration might engage an NDIS business consultant to perform an internal audit.
What Is a Mid-Term Audit?
Usually, a mid-term audit is done when an NDIS provider is halfway through the registration period. This audit aims to determine the organisation’s compliance with the NDIS quality and safeguarding standards during its registration period. It can be performed halfway between the NDIA renewal audit types, which are done every three years. While an internal audit is a general look at your organisation’s systems, a mid-term audit focuses on whether your firm effectively implements different systems, policies, and practices.
It is an opportunity to make necessary adjustments before your next NDIS renewal audit. Providers that received the mid-term audit signal should be able to prove that their activities are still compliant with the NDIS standards in participants’ care, staff development, and record management. Mid-term audits help prevent any gaps in compliance from becoming significant issues.
Key Differences Between Internal Audits and Mid-Term Audits
Now that we’ve defined both types of audits, it’s essential to highlight the key differences between them to understand which one is most suitable for your NDIS business.
1. Timing and Frequency
- Internal Audits: These audits are conducted regularly (typically annually or biannually; internal audits offer a proactive approach to maintaining compliance and ensuring your processes work effectively.
- Mid-Term Audits: These audits occur midway through the registration cycle (usually every 1.5 years) and only apply to compliance throughout the registration process.
2. Purpose and Scope
- Internal Audits: These audits primarily identify areas for improvement and ensure all systems run smoothly. Internal audits are often comprehensive, covering various operational and compliance areas, such as financial, human resources, and participants’ care.
- Mid-Term Audits: This type of audit focuses more on assessing how well your organisation meets NDIS standards during the middle of its registration cycle. The primary goal is to ensure you’re still aligned with NDIS requirements and standards as you approach the NDIS renewal period.
3. Cost Implications
- Internal Audits: The cost of an internal audit will, therefore, depend on the scale of your business enterprise and its operations. Some service providers may get an internal audit service from the cheapest NDIS auditor; the cost typically varies based on the depth of the review and the consultant’s experience.
- Mid-Term Audits: Mid-term audits are more costly than initial audits due to their focus on compliance. However, investing in a mid-term audit can save your business from costly mistakes during your NDIS renewal process and reduce the risk of non-compliance.
Which Audit Is Right for Your NDIS Organisation?
Deciding between an internal audit and a mid-term audit depends on your NDIS business’s current stage and compliance needs:
- Just starting? Conducting an internal audit from the onset is wise to set the right system.
- Halfway through your registration period? Mid-term auditing involves checking the current compliance rate and a company’s NDIS renewal to see if it’s an opportunity to solve any minor problems that may occasionally arise.
- Preparing for NDIS renewal? You may need both audits. Together, they will offer you the relevant information you need for compliance and preparation for the renewal process.
Conclusion
In conclusion, internal and NDIS mid-term audits are essential in the NDIS business but serve different purposes. Internal audits are proactive and comprehensive, ensuring ongoing compliance. While mid-term audits occur halfway through registration to assess compliance and prepare for NDIS renewal.
Auditing is a complex process, and working with a consultant with rich experience in the NDIS will simplify this process for you. If you still need clarification about what audit might suit your business, contact a professional NDIS business consultant and get orientated on complying with all the requirements.
Read More: Navigating the NDIS Provider Registration Renewal Process with Ease