What is an internal audit, and why have one?

An NDIS audit involves an approved auditor examining your services to see if they are up-to-date and comply with the NDIS Practice Standards. 

An internal audit is no different: it’s a way for your organisation to take a good look at your systems, processes, and procedures and check if they are operating as they should. That way, you can determine what is working well, identify any gaps, and make adjustments/improvements where necessary.

Read more: 5 Steps to Passing Your NDIS Audit

For example, it might be time to check on your complaints processes. Complaints handling systems must be freely available to service users/people with disability, including how to lodge a complaint. You can use your internal audit to test if the people you provide supports to are aware of and can access your complaints system. If they do, then this is not an area of concern; if they do not, then this is an area to improve.

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5 steps for a seamless internal audit

Step 1: Check the NDIS Practice Standards criteria

Firstly, gather all your organisation’s documentation. This will be used as key evidence for your NDIS audit and can include:

• Participant service agreements and plans
• Incident reports and resolution documentation
• Staff qualification records and training certificates
• Risk management procedures
• Quality management systems
• Feedback and complaints handling processes
• Privacy and confidentiality protocols

Then, compare these documents to the requirements for each module of the NDIS Practice Standards and check:

• That you understand what each requirement means
• You and your team know exactly what your roles and responsibilities are in line with the NDIS’s requirements
• If each document aligns with the Practice Standards, e.g. is your complaints process readily available to people with disability, and do they know how to make a complaint?

‍Tip: at a minimum, all service providers must comply with the core module.

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Step 2: Identify the most pressing issues 

While reviewing each aspect of your organisation would be ideal, this is unrealistic. Rather, it’s much more manageable to audit the areas that present the most concern to your organisation.

A great method is to develop a plan of attack. An audit plan allows you to:

• Determine which areas need the most focus
• Outline the reason and scope of the audit
• Identify who will be involved in the audit and what each person is responsible for
• Detail where and when the audit will take place

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Step 3: Begin your review

Now, it’s time to begin the audit. 

You can start by reviewing any evidence or further documentation provided to you by support workers or coordinators, such as shift notes and individualised care plans.

You may need to involve your service users by conducting interviews with them. Ask their permission before you begin the audit (outline this in your plan) so you can see firsthand how they are experiencing your services.

Or, if a person with disability agrees, you can also tag along to a support worker’s shift and observe them. Look at how they interact with the person they are supporting and check whether they are following your organisational procedures while also taking a person-centred approach.

Ask your staff members to explain their work process to you to check they understand their roles and responsibilities. You can also ask them if they’ve noticed any concerns or issues with the current organisational procedures and get their opinion on improvements.

Note: document everything. And don’t be disheartened if you come across something that needs addressing; remember, the goal is to learn and improve.

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Step 4: Document your findings in an  internal report

Documentation is crucial to the success of your audit. An internal audit report not only records the findings and outcomes of your audit but also provides essential evidence you can use during a formal NDIS audit.

Make sure your report includes the following:

• A summary
• Your objectives
• The audit methodology
• Persons involved
• Findings
• Evidence
• Planned actions

When writing the report, keep your language simple and write clearly and concisely.

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Step 5: Take action

Finally, address any issues identified in your review per your audit plan. Take the necessary steps you need to work on any concerns noted in your audit.

Some actions your organisation could be to:

• Provide relevant, targeted training to your staff members
• Establish more robust systems, e.g. provide an online complaints form
• Revise procedures and ensure all staff members are aware of the changes
• Provide relevant equipment and ensure all equipment is in safe working condition, e.g. hoists, lifts, transfers, etc.

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Enjoy the fruits of your labour

Congratulations! You’ve now completed your internal audit; here are some benefits of doing so.

Through the audit, you were able to:

• Proactively identify and address gaps in service delivery
• Demonstrate a commitment to continuous improvement
• Improve the quality of your services
• Be prepared for a formal NDIS audit
• Reduce any possible non-conformances

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Summary

• An internal audit allows your organisation to examine its systems, processes, and procedures and check whether they comply with the NDIS Practice Standards
• Go through the audit step by step:
  
  • First, check all your documents against the Practice Standards
  • Identify the most relevant areas of concern
  • Then, begin the review, conducting interviews and observing if needed
  • Create a report
  • Finally, take appropriate correct actions to resolve any issues
• Always ensure compliance and take a proactive approach through an internal audit