In Australia, the NDIS provides support and services to people with disabilities. Regular audits have been established to ensure that these services are of high quality and done effectively, which all NDIS providers must undergo. However, not all audits are equal. In this article, we will discuss two types of audits specifically applicable to an NDIS service provider: the NDIS audit and the NDIS internal audit. Both are necessary for standards and improving service delivery, but they are different in purpose, procedure, and who carries them out.
Let’s discuss the key differences between them and understand why both are critical to the success of NDIS service providers.
What is an NDIS Audit?
In disability services, an NDIS audit basically means that an approved auditor tests whether NDIS providers meet the regulatory standards set up by the NDIS Quality and Safeguards Commission. People also refer to an NDIS audit as an External Audit. Itis carried out by independent, accredited bodies to ensure that your services comply with the NDIS Practice Standards.The Practice Standards are guidelines on specific areas that reflect person-centred practice in supporting people with disabilities.
Meeting this particular criteria is mandatory for providers who want to register or re-register with the NDIS. Furthermore, these standards enable service providers and workers to better understand their roles and responsibilities.
Four core standards include:
- Provider governance and operational management
- Rights and responsibilities of participants
- Provision of support
- Provision of a supportive environment Scope of the NDIS Audit:
An NDIS audit covers the following areas:
- Participant rights and safety: Respecting the participants, treating them friendly, and ensuring that their safety is of utmost importance to us.
- Service delivery: Examination of how supports are delivered and if they meet the necessary standards.
- Workforce management: Train all staff members and workers to deliver customised services appropriately.
Who Conducts the NDIS Audit?
An independent third-party NDIS auditors or NDIS consultants accredited by the NDIS Quality and Safeguards Commission perform this type of audit. The NDIS auditor offers objective and unbiased determinations about the extent to which compliance has been met.
What is an NDIS Internal Audit?
The organisation conducts an in-house internal audit of the NDIS. This process, led by the service provider, helps them examine their operations, identify risks, and prepare for an external audit. Internal audits are not compulsory but are best practice in any organisation looking to maintain high standards. They will also highlight areas where providers can be more efficient, reduce costs, and improve the participant experience. Providers can, therefore, identify potential issues before the external audit.
Scope of the NDIS Internal Audit:
An NDIS audit covers the following areas:
- Internal governance: Oversight of how decisions are made to ensure if they are both NDIS regulation and internal policy compliant.
- Financial management: Ensure proper management of funds by promoting transparency and accountability.
- Participant service delivery: Checking the quality of services delivered to participants, which also entails feedback from clients and families.
- Risk management: Analysing risks that may threaten compliance and, for instance, reveal any fraud or gauge system inefficiencies that may cause poor service delivery.
Who Conducts the NDIS Internal Audit?
The NDIS internal audit is conducted by internal auditors or auditors of other organisations that must meet the qualification requirements stated by the NDIS Act.
Why Both Audits Are Necessary?
Ideally, both audits are of great importance to any service provider. External audits are important for ensuring that providers meet the strict standards required by the NDIS. On the other hand, internal audits are invaluable tools for providers to continue improving their operations, manage risks, and ensure long-term compliance. In conclusion, combined, these audits assist providers in achieving, protecting, and monitoring the quality-of-service delivery, corporate management, and compliance with NDIS.
Read More: 10 Common Questions Asked By NDIS Auditors During Provider Audits