Are you a support worker or service provider having trouble navigating the complexities of the NDIS? Don’t worry—we’re here to help.

One major requirement of the NDIS is undertaking an audit. However, this process can be confusing, which is why we’ve created a handy checklist to help you prepare and know what to expect from an NDIS audit.
 

Who is the NDIS? Why are they important?

Before we get into the thick of things, let's review who the NDIS is.

Most people who work in disability would have heard about them, but it's still important to know a little about the National Disability Insurance Scheme (NDIS). The NDIS is an independent body that works with service providers to improve the quality and safety of support services.

The NDIS covers:

• Registration and regulation of providers
• Compliance with the NDIS Practice Standards
• Standards and the NDIS Code of Conduct
• Complaints about NDIS services and supports
• Reportable incidents, including abuse and neglect of a participant
• Use of restrictive practices
• Nationally consistent NDIS worker screening

People with disabilities can register with the NDIS and are referred to as NDIS participants. The NDIS and the Practice Standards were developed to provide people with disabilities with more agency and choice, ensure they can fully participate in society, and have more control over their supports and lives.
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☑ Step 1: Understand what an NDIS audit means 

What is an audit? It's basically an examination in which an authority or person comes to your company and tests your services/products.

In disability services, an NDIS audit is when an approved auditor examines your services to see if they comply with current standards and are up to date.
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An NDIS audit ensures you are compliant with the NDIS Practice Standards. 

The Practice Standards are a set of guidelines covering specific areas that highlight person-centred practice when supporting people with disability. They help service providers and support workers better understand their roles and responsibilities and provide them with a gold standard.

There are four core standards, which are:

• Rights and responsibilities of participants
• Provider governance and operational management
• Provision of support
• Provision of supports environment
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☑ Step 2: Recognise why an audit is important

Beyond compliance with the NDIS Practice Standards, an audit assures your credibility as a disability service provider.

Audits also help you ensure you stay up-to-date with current models of practice so you provide the best possible quality service your clients can expect. 

Being registered and audited also means your clients have more confidence and trust in your organisation, which improves your brand reputation.
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☑ Step 3: Get everything ready for your audit

Before starting the audit process, you must ensure the key information is ready. This includes registering with the NDIS and organising your policies and procedures.

Let's break these down.
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Register with the NDIS

Initially, disability providers had a choice when it came to registering with the NDIS. However, per the 2023 NDIS Review, they will now be required to register to crack down on low-quality and unsafe supports.

Registering with the NDIS offers many benefits beyond compliance, such as:

• A wider market as people with disability are more likely to choose support services from registered providers
• More accessibility for people with disability (and your organisation) as they can access supports through the NDIS
• Ease of billing and finance management, as registered providers can easily claim payment for services from the NDIS portal

To register, you must submit a self-audit to assess your organisation and its services to see if it meets the NDIS's requirements. Once that is submitted, the NDIS will need to confirm this; hence, an audit by an approved provider is needed.
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Create or improve your policies and procedures

Before you register, it's important to ensure you have the appropriate documentation. This can include your policies and procedures or any training your staff has received.

Usually, you can get templates or use the NDIS Practice Standards and Capability Framework to create or update your policies. Policies and procedures are essential as they standardise how your support workers or other staff in your organisation are to behave.

Training, policies, and procedures are the evidence you can provide to the NDIS to show that your organisation is committed to following its requirements and can deliver the services you say you offer.

Training, in particular, helps you become audit-ready because it shows a commitment to improving your services and having updated knowledge and practices.

Some of these policies and training might cover incident management, complaints resolution, risk management, and codes of conduct (which are topics specifically outlined in the Practice Standards).

We recommend choosing training that is mapped against the NDIS Practice Standards. Such training ensures you demonstrate compliance and equips your workers with the latest best practices.
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☑ Step 4: Work out costs, find an auditor, and select audit type

First, you would figure out how much the audit will cost you. Be aware that the audit price may differ depending on who you choose. It also depends on the size of your organisation (i.e. the number of staff), the types of services you offer, and whether your services are low or high-risk.

It's a good idea to get quotes from different auditors and find a price that best suits you and your organisation. Generally, an audit will cost anything between $500 to $10k.

Then, you will need to choose who will audit your organisation. The NDIS does not conduct audits but has an approved list of auditors who will determine whether you meet the requirements.

Finally, decide what type of audit you need. There are two pathways to registration: verification and certification. 

Verification is for any service providers who offer low/lower-risk supports and services, e.g. assistance with travel. Certification is for any service providers who offer high/higher-risk supports and services that are a little more complex, e.g. assistance with daily life tasks.

Both verified and certified providers must renew their registration every 3 years and undergo an audit. Certified providers have to have an audit during the middle of the registered period, so every 1.5 years.

For verification audits:

• Your auditor will check your documentation and determine if it and your self-assessment show that you comply with the Practice Standards
• They will also look at outcomes from any previous audits and corrective actions
• The auditor will then submit their results to the NDIS Commission within 14 days of the audit
• The Commission will then make a final decision based on the audit finding, as well as a "scoring" of your services

For certification audits:

• Your auditor will check your documentation and determine if it and your self-assessment show that you comply with the Practice Standards
• They will also look at outcomes from any previous audits and corrective actions
• Some auditors may even request to interview clients and choose clients from a de-identified list that you will need to provide them
• Your auditor may even provide you with an Audit Plan, which you need to sign before the onsite assessment
• Within 3 months of Stage 1 Completion, the auditor will visit you in person and interview staff, clients, family, friends, etc. and check your documentation again
• At the end of the audit, they will provide you with a detailed overview of the audit and any con-conformities they identified
• The auditor will then present their findings to the NDIS Commission within 14 days
• The Commission will then make a final decision based on the audit finding, as well as a "scoring" of your services
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Step 5: Undergo the audit and pass (or not)

Finally, it's time to undergo the audit. You usually have between 12 and 18 months after registering to complete your audit.

Once audited, your auditor will present their evaluation to the NDIS Commission and inform you whether you have passed or not.

To put it frankly, you cannot technically "pass" an NDIS audit. Instead, you are given a rating on a scale of notifiable non-conformity to conformity with best practice.

What does this mean? Let's break it down. Amergin provided a great scale to use.

If you are registered, you don't face deregistration unless you continue to ignore notifiable or severe non-conformity.
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Final thoughts

Remember, the goal of a registered NDIS provider is to consistently deliver best-practice services to their clients. The auditor and the NDIS also want to confirm that service providers are doing their part and meeting their legal and compliance requirements.

The best thing you can do is always have documented evidence of everything—including policies, procedures, reports, complaints, etc.—to ensure you do right by the NDIS and, more importantly, those you support.