Ensuring compliance and service quality are critical for NDIS (National Disability Insurance Scheme) providers. A crucial part of this responsibility is understanding the different types of audits that NDIS providers must undergo. Internal and mid-term audits are essential for assessing compliance, quality, and performance. At VCCG, we aim to clarify the differences between these audits, helping NDIS providers navigate compliance requirements with greater ease and confidence.

What is an Internal Audit?

An internal audit is a continuous and comprehensive process that evaluates an organisation's performance, risk management, and leadership to ensure adherence to NDIS standards. Internal audits are critical for NDIS providers to assess compliance with the NDIS registration framework and deliver quality service. The goal is to ensure that every aspect of the organisation, including financial processes, service delivery, and regulatory compliance, aligns with NDIS quality and safety standards.

Key Features of Internal Audits:

1. Frequency and Timing: Internal audits can be conducted anytime during the year. Organisations typically schedule them based on their unique needs or the results of previous audits.
2. Scope: Internal audits review every facet of the organisation, including policies, procedures, and operational efficiency. The audit covers various areas, such as financial processes, compliance with NDIS regulations, and service delivery practices.
3. Objective: The primary aim is to identify areas that require improvement while ensuring that the organisation maintains continuous alignment with NDIS standards. It provides insights that drive organisational improvement, risk management, and regulatory compliance.
4. Outcome: Recommendations from internal audits help the organisation improve its systems, ensuring better service delivery and compliance. This process also ensures the organisation is well-prepared for other formal audits, such as mid-term and renewal audits.

What is a Mid-Term Audit?

A mid-term audit occurs at a specific point in an NDIS provider's registration period, often halfway through the cycle. It is designed to review the organisation's current state of compliance, service delivery, and progression towards meeting the objectives outlined in the NDIS registration framework. Unlike internal audits covering all operational aspects, a mid-term audit focuses on performance and compliance within a fixed period, providing a status check.

Key Features of Mid-Term Audits:

1. Timing: Mid-term audits are scheduled at a specific point during the NDIS registration period, usually halfway through the program cycle. These audits check the provider's compliance and performance to ensure they align with NDIS standards.
2. Scope: The mid-term audit's scope is more limited than an internal audit. It focuses on specific projects or funding streams and evaluates whether the delivered services align with the expected outcomes.
3. Objective: A mid-term audit aims to assess ongoing performance, identify compliance issues, and ensure the organisation remains on track to meet its targets. This helps NDIS providers identify areas that need immediate attention to avoid future non-compliance.
4. Outcome: A mid-term audit provides a snapshot of the organisation's current performance and compliance, highlighting any areas needing focus before the next formal or renewal audit. The findings enable organisations to take corrective actions to address issues hindering progress.

Internal Audit vs. Mid-Term Audit: Key Differences

Purpose and Objectives:

• Internal Audit: The main goal of an internal audit is to improve overall organisational effectiveness. It provides a detailed review of an organisation's processes, identifying areas for improvement, ensuring compliance, and helping to mitigate risks.
• Mid-Term Audit: A mid-term audit is focused on assessing whether an NDIS provider is meeting specific performance goals and compliance benchmarks set during the registration period.

Frequency:

• Internal Audit: These audits can be conducted at any time throughout the year, as the organisation needs. They are often planned based on specific business requirements or the results of previous audits.
• Mid-Term Audit: This type of audit is scheduled for a particular time, typically halfway through the NDIS registration cycle, and is mandatory for compliance check-ins.

Scope of Assessment:

• Internal Audit: The scope of an internal audit is broad, covering various areas such as governance, financial systems, and operational procedures.
• Mid-Term Audit: In contrast, a mid-term audit is more focused. It evaluates specific projects, performance metrics, or service delivery aspects to ensure that the provider complies with NDIS audit requirements.

Level of Detail:

• Internal Audit: An internal audit involves a detailed analysis of organisational processes, systems, and compliance efforts. It is a deep dive into operational effectiveness, financial management, and service quality.
• Mid-Term Audit: A mid-term audit offers a high-level overview, focusing on the progress of ongoing projects and compliance within the current program cycle.

Why Are Both Audits Important for NDIS Providers?

Internal and mid-term audits are critical in helping NDIS providers maintain compliance, improve service quality, and stay on track with their goals. Internal audits comprehensively evaluate an organisation's processes and procedures, offering actionable insights that can improve overall performance. Mid-term audits, on the other hand, provide a timely check-in, allowing organisations to correct any compliance issues before they escalate. These audits ensure that NDIS providers remain compliant with the requirements of their NDIS registration while delivering high-quality services to participants.

Engaging an NDIS Auditor

Engaging professional NDIS auditors is crucial to successfully navigating the complexities of NDIS compliance. These experts can conduct internal and mid-term audits, providing tailored insights to ensure your organisation complies with the NDIS framework. Working with experienced NDIS consultants will also help providers better understand the auditing process, helping them stay prepared for renewal audits and any future compliance requirements.

Conclusion

Understanding the difference between internal and mid-term audits is essential for any NDIS provider committed to maintaining compliance and service quality. Internal audits offer a detailed review of the organisation's processes, while mid-term audits provide a progress report at a specific point in time. Together, these audits help NDIS providers stay compliant and deliver the best possible services to their participants.

At VCCG, we offer internal audit consultancy and mid-term audit services tailored to your organisation's needs. Our team is here to support you in navigating the complexities of NDIS audits, helping you focus on what matters most—delivering quality care to the communities you serve. Explore our latest workshops and training to stay up-to-date on NDIS compliance requirements and prepare for your next NDIS business audit. Whether you're looking to launch your NDIS business or need ongoing support, we are here to guide you through every step of the process.