NDIS AUDIT FAQs
The NDIS Quality and compliance system can seem confusing. And then there’s audits! We hope this FAQ sheet will help clear things up a little.
What are the NDIS Practice Standards?
The NDIS Practice Standards is the document against which providers conduct self-assessments and are audited. The Standards are divided into a Core Module (relevant to all Certification-pathway providers) and a series of ‘Modules’ addressing a variety of services provided in the NDIS marketplace. Verification-pathway providers are addressed under a separate module.
The Standards set out goals for NDIS service delivery: sound business practices, good governance, support for the rights and wellbeing of participants. These goals are published as qualitative outcomes, which providers are responsible to meet.
Which provider responsibilities are assessed?
The Standards are based on the NDIS Quality and Safeguarding Framework, along with international conventions, ISO standards, laws, and regulations. However, they rarely refer to these sources explicitly. Providers are responsible for understanding the legal and regulatory requirements relating to their business (e.g., HR, WH&S, Risk Management, Information Management, human rights) and the relevant Quality Management conventions (e.g., Risk Management):
“A quality management system is maintained that is relevant and proportionate to the size and scale of the provider and the scope and complexity of the supports delivered. The system defines how to meet the requirements of legislation and these standards. The system is reviewed and updated as required to improve support delivery.”
— Provider Governance and Operational Management: Quality Management
Any system, provided it contains those features, could meet the outcome. Providers are responsible for determining what that Quality Management System looks like.
Although this gives providers some business management flexibility, there is little point re-inventing the wheel.
Adopting mainstream business systems risks leaving sector-specific requirements unaddressed.
The community sector has developed techniques for managing Quality. Whatever shortcomings these might have, they are purpose built and fit-for-purpose. At NDIS audits, they are the conventions auditors expect to see.
Why do I need an audit?
Firstly, NDIS audits ensure that services are delivered safely and consistently across Australia, and that’s why audits are conducted by ‘Approved Quality Auditors’.
Secondly, NDIS audits help providers to plan more effectively, and compete in the NDIS marketplace. They evaluate services and encourage the collection of data that providers can use to promote better services and organisational growth. If it’s mandatory, why not make the best of it?
What type of audit do I need?
There are two types of NDIS audit: ‘Certification’ audits and ‘Verification’ audits. The type of audit required depends on two things:
- the organisation’s company structure and
- the supports (registration groups) provided
Verification Audits currently apply to providers delivering low-risk supports; Certification Audits apply to all other providers.
What are NDIS Verification Audits?
Verification Audits are conducted off-site. The auditors review policies and other organisational documentation, provide a report and then make their recommendation to the NDIS Commission.
What are NDIS Certification Audits?
Certification Audits are conducted in two stages and are a lot larger (and more expensive) than Verification audits.
Stage 1: Document review — the auditors will review your policies and may ask for examples of how you’ve implemented your policies. You will receive a report at the end of Stage 1 that will identify any Areas of Concern, which the auditor will examine more closely in Stage 2.
Stage 2: This is an onsite visit from the auditors to review your documentation (again) and examine issues that were noted as Areas of Concern in Stage 1. They will also review staff files and participant files.
Interviews: Auditors interview staff and participants to confirm that policies are understood and put into practice. Participants’ involvement in the NDIS audits are on an ‘opt-out’ basis. You must ask your participants whether they want to be involved. If they don’t, always document the reason why. Document everything!
NDIS Audit Report: At the end of Stage 2, you will receive a report. Non-conformances will be highlighted in the report. The auditors will require you to create a ‘Corrective Action Plan’ detailing how will you fix the problems identified.
TIP: For more detailed guidance about gathering evidence and preparing for Certification Audits, see our publication The NDIS Audit Guide: Practice Standards Core Module and watch our YouTube Video on the NDIS Audit Process: Certification Audits.
What are Low and High Risk NDIS Supports?
LOW-RISK NDIS SUPPORTS
- Accommodation/Tenancy Assistance
- Assistive Products for Personal Care and Safety
- Personal Mobility Equipment
- Assistance with Travel/Transport Arrangements
- Vehicle Modifications
- Home Modification Design and Construction
- Assistive Equipment for Recreation
- Vision Equipment
- Community Nursing Care
- Innovative Community Participation
- Specialised Hearing Services
- Therapeutic Supports
- Plan Management — Management of Funding for Supports
- Household Tasks
- Interpreting and Translation
- Hearing Equipment
- Assistive Products in Household Tasks
- Communication and Information Equipment
HIGH-RISK NDIS SUPPORTS
- Assistance to Access and Maintain Employment or Higher Education [Assist Access/Maintain Employ]
- High Intensity Daily Personal Activities
- Assistance in Coordinating or Managing Life Stages, Transitions and Supports [Life Stage, Transition]
- Daily Personal Activities
- Specialist Positive Behaviour Support
- Assistance with Daily Life Tasks in a Group or Shared Living Arrangement [Daily Tasks/Shared Living]
- Development of Daily Living and Life Skills [Development-Life Skills]
- Early Intervention Supports for Early Childhood
- Participation in Community, Social, and Civil Activities [Participate Community]
- Specialist Disability Accommodation [Specialist Accom]
- Support Coordination
- Specialised Supported Employment
- Group and Centre-Based Activities [Group/Centre Activities]
How much does an NDIS audit cost?
The Approved Quality Auditor you choose will provide a quote for the audit depending on the ‘Scope of Audit’ you receive as a result of your NDIS Commission application/renewal application.
Prices will vary depending on the registration groups (services and supports) delivered, the number of staff, number of participants you currently provide services to, and the number of sites from which you deliver services. Prices also vary between auditing bodies. So it’s worth obtaining a few quotes.
What happens if I fail the audit?
NDIS audits are not pass or fail situations. For Certification audits, ‘Major non-conformances’ must be fixed within three months of your audit. Any ‘Minor non-conformances’ you receive need to be addressed within 12 months of your audit.
For Verification audits, non-conformances must be fixed before the audit can be completed, and a recommendation made for approval to the NDIS Commission.
If you’re unable to address the issues, or the auditors’ recommendation to the NDIS Commission is not to approve certification or verification, the auditors will discuss this with you and the implications for your registration.
When I pass the audit, does that mean I’m registered?
Once the audit is complete, the audit report is sent to the NDIS Commission for their approval decision. The Commission considers the audit report and assesses the suitability of key personnel. They may also ask the applicant for further information to help their assessment. Applicants are then informed of the approval decision and any conditions that apply to the registration. Unsuccessful applicants may appeal the decision.
Can we get help with NDIS audits?
Yes, NDIS providers are permitted to receive help in preparing for and conducting their audits. It’s great to have an expert on side. Professional preparation means less stress and fewer non-conformances.
PQplus helps providers prepare for and conduct audits. We’ve helped large and small organisations. Here’s how we can help your organisation:
- Starting out: PQplus Complete Care fully equips you for the registration and audit process — with full compliance documents, start to finish support and additional resources to help you through the audit and beyond.
- Experienced providers: Our HEADSTART Internal Audit Service is a great way to get audit ready.
- Unregistered: If you’ve been operating unregistered, our Provider ON-RAMP has everything you need — with a minimum of disruption.
If you’re unsure about what you need, talk to us. We believe in passing on the skills. We work with you, explaining the processes and coaching staff so you’ll be better equipped for the next audit cycle.
Your auditors will help a lot, but there’s a limit to what they can do. They cannot advise the clients they audit. It would be a conflict of interest. We are trusted by auditing companies to help providers solve problems revealed at audit. In truth, we would rather help you prepare than repair.