- What are the transition areas for the NDIS in NSW?
- Does my organisation need to be registered with the NDIS to provide services under the NDIS?
- Why is my ADHC funding being reduced?
- How is the payment calculated?
- What about the Planned Payments Schedule that providers received in May 2017?
- What about funding for people who were due to transition in FY16/17 but still do not have an NDIS support plan?
- When do payments from FACS stop?
- What about acquittals?
- Why is the NDIA not paying my organisation for my clients the same amount of funding as FACS paid?
- How does FACS know people are transitioning as planned?
- How does FACS know who is transitioning?
- Why can’t you tell me (give me names) who has transitioned to the NDIS?
- What is in the fortnightly reports sent to providers and how should they use it?
- How do I read the Statistical Linkage Key (SLK)?
- What about if my organisation no longer receives FACS funding?
- Why are my payments changing from quarterly to monthly?
- What will happen to block and individualised funding?
- Will my non-output service funding be varied?
- What is a Funding Cohort?
- How do I manually calculate my ADHC funding variations for 2017-18?
- Can I transfer ADHC funding from one DofS to another?
- Can my organisation keep ADHC funding after a block funded person has transitioned?
- Why is the NDIA not paying me the same amount of funding as ADHC?
- How does ADHC know people are transitioning as planned?
- How do I know when my clients have transitioned to the NDIS?
- Will my organisation continue to receive funding for people aged over 65 years?
- What happens to people under the age of 65 who are ineligible for the NDIS?
- Can my organisation appeal against the rate of funding variation?
- Who can I contact if I have more questions about my ADHC funding?
What are the transition areas for the NDIS in NSW?
Providers delivering services to clients in the following FACS district areas will transition to the NDIS between 1 July 2017 and 30 June 2018:
- Illawarra Shoalhaven
- Mid North Coast
- Northern New South Wales
- South Eastern Sydney
- Western New South Wales
- Far West
The following FACS district areas are finalising their transition to the NDIS in 2016-17: Central Coast; Hunter New England; Nepean Blue Mountains; Northern Sydney; South Western Sydney; Southern New South Wales; and Western Sydney.
Does my organisation need to be registered with the NDIS under the NDIS?
Yes, it is essential that providers are registered with the National Disability Insurance Agency (NDIA). The NDIA cannot pay unregistered providers to deliver NDIS services to participants. ADHC will also have ceased funding the person once they have transitioned to the NDIS. Please refer to the NDIA website for more information on how to become a registered provider under the NDIS at www.ndis.gov.au
Why is my ADHC funding being reduced?
The NSW government has a bilateral agreement with the Commonwealth to establish the NDIS by 30 June 2018. The agreement commits NSW to transition responsibility for disability support funding to the Commonwealth. This means FACS will no longer provide disability services or fund service providers to deliver disability services in NSW.
How is the payment calculated?
Payments to providers for people transitioning to the NDIS in FY17/18 reflect the actual rates of client transition.
Where service users are block funded, payments are reduced proportionate to the number of participants who are transitioning each month. For example, a provider that has 100 clients in day programs (3.01) and 20 clients transition in a given month. Providers should expect to see their funding for this cohort of clients reduced in proportion to the number of clients that have transitioned, with a potential variation of plus or minus 2.2%.
Payments for individually funded clients are reduced according to the value of their funding package.
The exception to this is where providers have not reported clients against particular service types. In these circumstances we step-down payments for those service types using the agreed phasing in the Bilateral Agreement.
Non-output services will be fully funded until 30 June 2018.
It is important to remember that:
- Each month’s payment reflects the number of days in the month, so payments for the same people receiving the same services will differ between February and March, for example.
- All payment correspondence from ADHC excludes GST.
What about the Planned Payments Schedule that providers received in May 2017?
The Planned Payments Schedule (PPS) was based on information held as at May 2017.
The purpose of the PPS was to assist providers’ preparations for NDIS transition and to plan for and manage cash flow changes during FY17/18. It did not include information on funding that was due to transition in FY16/17.
As it has turned out, the actual rate of client transition to the NDIS does not, in many cases, reflect the rates of transition used in the PPS. This has meant actual funding variations made during FY16-17 are different from the Planned Payments Schedule.
What about funding for people who were due to transition in FY16/17 but still do not have an NDIS support plan?
People who started but did not complete transition in FY16/17 will continue to be funded by FACS. Providers should continue to deliver services to people waiting to transition.
As people transition to the NDIS, their funding will generally cease from the calendar month after their NDIS plan is approved.
When do payments from FACS stop?
Under the Bilateral Agreement, the NDIS support plan approval date is the date NSW funding responsibility ceases and the National Disability Insurance Agency’s (NDIA) commences. The plan approval date is the date FACS uses as the person’s transition date to make funding variations.
FACS’s funding variation process ceases funding from either:
- the first day of the month after the plan is approved if the person’s plan approval date is in the first half of the month, or
- the first day of the subsequent month, if the plan approval date is in the second half of the month.
This avoids the need to apply multiple funding variation dates and it also allows providers to have some flexibility to manage the transition from being funded in advance by NSW to billing the NDIA in arrears.
What about acquittals?
For information about acquittals, please see the information on our page for fully transitioned providers.
Why is the NDIA not paying my organisation for my clients the same amount of funding as FACS paid?
The NDIA makes payments to providers based on a person’s assessed reasonable and necessary supports and according to the NDIS pricing schedule. This means that the NDIA will not necessarily provide the same amount of funding that FACS previously paid.
How does FACS know people are transitioning as planned?
The NDIA shares information about the transition directly with FACS. This allows FACS to monitor transition rates and align as closely as possible the funding variations. ADHC is continuously monitoring the rates at which people and funding transition throughout FY17/18.
How does FACS know who is transitioning?
Client information is based on data supplied by service providers to FACS as part of the initial data gathering exercise when the NDIS was introduced. The last data collection exercise was undertaken in June 2017. This is sometimes referred to as “census data” or “client returns”.
Why can’t you tell me (give me names) who has transitioned to the NDIS?
Under the NDIS it is the right of participants, not FACS, to determine how and when they will inform providers about the status of their NDIS support plans. It is not appropriate for FACS to provide this information as the privacy of individual participants is paramount.
Under privacy legislation, FACS cannot give any service provider, or anybody else, a list of client names and funding amounts.
However, FACS does provide de-identified client information, in the form of Statistical Linkage Keys (SLKs) reports, to providers to manage the funding impact of people that have transitioned.
What is in the fortnightly reports sent to providers and how should they use it?
SLK data is supplied to FACS by the NDIA and encodes information unique to each client. FACS emails providers SLK data that shows who has transitioned to the NDIS. This allows providers to plan in advance for the step down of funding, rather than responding to reductions in funding after they have occurred. This information is sent to providers fortnightly.
The Privacy Commissioner has directed FACS to maintain the confidentiality of personal information which includes a person’s NDIS transition status. SLK data is a de-personalised way for you to monitor the rate people transition which then allows you to manage reductions to your funding.
How do I read the Statistical Linkage Key?
The SLK is created as follows:
- First three digits of SLK = 2nd and 3rd and 5th letters from surname
- Next 2 digits of SLK = 2nd and 3rd letters of first name
- Next 8 digits of SLK = Date of birth
- Final digit = ‘1’ for male, ‘2’ for female, ‘9’ for unknown/other
So, for example MIHOH010119831, would be:
- Name: JOHN SMITH
- DOB: 01/01/1983
- Gender: Male
Where a birth-date is a single digit number, as above, the SLK still uses a zero displayed as dd/mm/yyyy.
Where a client has a hyphen or other punctuation in their name, the SLK ignores it.
- For example, with the name O’Reilly the ‘e’ and ‘i’ count as the second and third letters for the SLK. And ‘l’ is the fifth.
Where a client does not have a second, third or fifth character in their name the SLK uses the digit ‘2’ instead.
- For example, JOHN SMIT – a male person born on 05/01/1975 – would have an SLK of: MI2OH050119751.
- SU LI – a female person born 15/05/2001 – would have an SLK of: I22U2150520012
What about if my organisation no longer receives FACS funding?
Providers who have fully transitioned all of their NSW disability-funded clients to the NDIS and whose funding has ceased, have a number of obligations under the ADHC Funding Agreement 2015-18. For more information visit the fully transitioned providers page.
Will my non-output service funding be varied?
Funding variations will not be made to non-output services. Funding will continue to be paid in full until 30 June 2018. Non-output services are defined by the following service models:
- 2.07.01 Support Networks
- 6.01.01 Individual Advocacy
- 6.03.01 Combined Information/Advocacy
- 6.02.01 Information/Referral
- 6.05.02 Print Disability/Alternative formats
- 7.02.01 Training and Development
- 7.04.02 Other Support Services
- 10.20.01-10.20.09 Community Care Support Program non-output services
Why are my payments changing from quarterly to monthly?
All ADHC payments in 2017-18 will be paid monthly in advance, rather than quarterly. This change will take effect on 1 July 2017. This change aligns with the standard business practice of monthly billing cycles. The same change was made to service providers’ payments for services that transitioned in 2016-17
What will happen to block and individualised funding?
Block funding variations Block funded services will progressively transition to the NDIS in one of three funding cohorts. Funding may not necessarily cease at the exact time a person enters the NDIS if the person accesses ADHC funded services from different cohorts.
Individualised funding variations People with individualised funding packages are not grouped into a funding variation cohort. Funding for a person with individualised ADHC funding will cease when their NDIS support plan is approved.
What is a Funding Cohort?
Block funded clients have been grouped into funding cohorts according to their service types. Funding variations are based on three separate cohorts of services, which will transition to the NDIS at different rates over the course of the 2017-18 financial year. For more information about cohorts, and which cohorts correspond with MDS service types, please refer to the ADHC Funding Variations 2017-2018 Fact Sheet.
How do I manually calculate my ADHC funding variations for 2017-18?
To calculate your funding variations, you will need to divide your annual payment into monthly payments (by dividing the annual payment by 365 and multiplying by the number of calendar days in the month). You will then need to reduce the monthly payment by the funding variation rates for each cohort as described below:
Cohort 1 Payments are expected to cease from August 2017 onwards. This is because all people in this cohort are expected to have completed their transition by the end of July 2017.
Cohort 2 Payments will be reduced based on two different rates at which people are expected to transition. In the first half of the 2017-18 financial year, 75% of people in this cohort are expected to transition. ADHC will therefore plan to reduce total funding by 75% during that six month period. This means ADHC will make a 12.5% funding variation that accumulates each month for six months. The 12.5% variation is calculated by dividing 75% by six. In the second half of 2017-18, the remaining 25% of people are expected to transition. This translates to a 4.16667% funding variation accumulating per month over a six month period. The percentage is calculated by dividing 25% by six.
Cohort 3 Transition rates are reversed for cohort 3. 25% people are expected to transition in the first six months of 2017-18 and the remaining 75% to transition in the second half of the year. This means the funding variations will also be reversed. Funding is planned to reduce at 4.16667% per month then changes to 12.5% per month.
Can I transfer ADHC funding from one DofS to another?
Yes, funding can be reallocated across services within the same funding cohort. This allows providers the flexibility to continue to deliver services with ADHC funding without being constrained by program based funding restrictions. This does not need to be approved by ADHC.
Can my organisation keep ADHC funding after a block funded person has transitioned?
Yes, but only the balance of that month’s payment. ADHC will reduce the next month’s payment to take into account all of the people that have transitioned.
Why is the NDIA not paying me the same amount of funding as ADHC?
The NDIA will make payments to a provider based on a person’s assessed needs and according to the NDIS pricing schedule. This means that the NDIA will not necessarily provide the same amount of funding that ADHC previously paid. Providers will need to understand and manage the cost of their services under the NDIS.
How does ADHC know people are transitioning as planned?
The NDIA shares information about the transition directly with ADHC. This allows ADHC to monitor transition rates and align as closely as possible the funding variations. ADHC will be continuously monitoring the rates at which people and funding transition throughout 2017-18. ADHC may consider changing the rate funding is varied if people transition significantly more quickly or more slowly than expected.
How do I know when my clients have transitioned to the NDIS?
Under the NDIS it is the right of participants, not ADHC, to determine how and when they will inform providers about the status of their NDIS support plans. It is not appropriate for ADHC to provide this information as the privacy of individual participants is paramount.
However, ADHC will provide de-identified client information, in the form of Statistical Linkage Keys (SLKs), to providers about clients that have transitioned to the NDIS.
SLK data is supplied to ADHC by the NDIA and contains information unique to each client. ADHC will aim to send SLK data to providers on a fortnightly basis within five working days of when we receive it. This will allow providers to plan in advance for the step down of funding, rather than responding to reductions in funding after it has occurred.
Will my organisation continue to receive funding for people aged over 65 years?
People who are aged 65 and over and Aboriginal people aged over 50, will receive supports administered by the Commonwealth via the Department of Health. A Continuity of Support (CoS) program is in place and the final group of clients will phase into the Commonwealth CoS program in May 2018.
FACS districts that will phase into the CoS program from May 2018 are:
- Far West
- Northern NSW
- South Eastern Sydney
What happens to people under the age of 65 who are ineligible for the NDIS?
People aged under 65 who have applied to the NDIS and been found ineligible will be assisted by their service provider to transition to alternative supports and services so that they will achieve similar outcomes to those they currently receive. Clients requiring further information about the supports available should contact their current service provider.
After 30 June 2018, ineligible clients will also be able to access supports through the NDIS Information, Linkages and Capacity Building projects.
Can my organisation appeal against the rate of funding variations?
There is no scope for appeal against the rate and the calculation of funding variations. However, you can submit requests for changes to funding that you believe are listed in the wrong cohort by sending an email to email@example.com.
However, no further changes will be made after March 2018
Who can I contact if I have more questions about my ADHC funding?
For further information about your ADHC funding, email firstname.lastname@example.org.
For general information about the NDIS transition process in NSW please go to www.ndis.nsw.gov.au.