An NDIS audit cycle is the repeated process in which NDIS-approved auditors review your organisation’s compliance with the Commissioner’s Practice Standards. These are carried out at regular intervals.
There are 2 audit types, verified and certified. In a verified audit cycle, there is 1 audit every 3 years
In a certified audit cycle, there is 1 audit called a midterm audit every 18 months between each tri-annual audit, with a re-certification audit every 3 years
What are the audits an NDIS-registered provider need to undertake?
Every Certified NDIS-registered provider must undergo Stage 1 and Stage 2 audits every three years to have their Certificate of Registration renewed.
Every Verified NDIS-registered provider must undergo a Verification audit every three years to have their Certificate of Registration renewed.
The 3-yearly audit cycle
If you wish to remain registered under the National Disability Insurance Scheme (NDIS), you need to renew your Certificate of Registration every three years before your registration period ends. Renewal may commence six months prior to the expiry date and no later than three months prior.
The Certification audits for this re-registration cycle are a thorough process made up of Stage 1 and Stage 2 audits. The Stage 1 audit is an off-site, desk-top audit that determines your readiness for certification and is followed by a Stage 2 audit, within three months.
Organisations requiring a certification type audit will undergo the Stage 2 audit on-site. In contrast, NDIS providers undertaking a verification type audit will have their verification audit conducted off-site.
Both Stage 1 and Stage 2 audits, and Verification audits, are performed by a NDIS approved quality auditor who will examine the evidence you provide against the relevant modules of the NDIS Practice Standards.
Read our blog on Stage 1 and Stage 2 Audits to learn more about the process.
Mid-term Audits
There are 2 audit cycles, verified and certified. In a verified audit cycle, there is 1 audit every 3 years
In a certified audit cycle there is 1 audit called a midterm audit every 18 months, with a recertification audit at the 3 year mark.
NDIS AUDITING – FAQs
WHAT IS THE DIFFERENCE BETWEEN AN NDIS VERIFICATION AUDIT AND AN NDIS CERTIFICATION AUDIT?
NDIS verification audits are for organisations that wish to register for low-risk support activities. They are usually done off-site, which means that they are less expensive than certification audits.
NDIS certification audits are for organisations that are registered or wish to register for complex or higher-risk support activities. Certification audits are usually more complex and can take months to complete as they involve both on-site and off-site stages. They often also involve staff and client interviews as part of the process.
WHAT ARE THE NDIS AUDIT REQUIREMENTS?
The requirements of an NDIS audit will vary on the type of NDIS audit undertaken, and the size, and scope of your organisation.
For an NDIS verification audit, the provider will be required to show evidence of:
- Relevant qualification
- Expertise and experience
- Incident management policies and processes
- Complaint management policies and processes
- Risk management
NDIS certification audits are more complex and involve both a documentation audit, as well as an on-site audit. Certification audits providers are assessed against the core module as well as any supplementary modules which may be related to the support activity they are registered to deliver.
A core module assessment assesses:
- Risk management
- Delivery of support
- The delivery environment
- Governance and operational management
Supplementary modules cover:
HOW MUCH DOES AN NDIS VERIFICATION AUDIT COST?
It can be difficult to estimate the cost of an NDIS verification audit as the final cost will depend on a number of factors. These factors include the size and scope of your organisation, and the vendor doing the NDIS auditing.
Since the NDIS Commission does not dictate the prices that auditing bodies can charge, the price for an NDIS audit can vary wildly. It is often a good idea to approach multiple vendors for quotes.
WHAT IS THE NDIS AUDITING PROCESS?
The NDIS auditing processes differ on whether a provider requires a verification or certification audit.
NDIS auditing process for a verification audit includes:
- Audit planning where the provider and certification body discuss the details of the verification audit
- The provider will supply the auditor with all relevant documentation
- The auditor will complete a ‘desktop audit’ by reviewing the provider’s documentation
- The auditor will prepare a report based on the findings and give their recommendations
- The certification body will make a decision on whether or not to verify the provider
The NDIS auditing process for and certification audit includes the same document review as a verification audit, however, also includes an on-site assessment. In this on-site assessment, the auditor will examine the environment where the provider’s service takes place.
