FAQs for Service Providers

Where are my payments varying from previous months’ planned payment schedules?

ADHC is closely monitoring the rate of transition and is responding to this on a regular basis. We will issue revised planned payment schedules whenever we make adjustments to your organisation’s payments.

Why is my ADHC funding being reduced?

As part of the introduction of the National Disability Insurance Scheme (NDIS), from 1 July 2018 Ageing, Disability and Home Care (ADHC) will hand over responsibility for funding disability services in NSW to the National Disability Insurance Agency (NDIA).

As people transition to the NDIS and receive funding according to their individual plan, ADHC’s funding to service providers will reduce.

Refer to the ADHC Funding Variations fact sheet for more information.

Will all of my ADHC funded services be impacted?

Only certain services will have their funding reduced.  The timeframe in which this will occur will differ depending on which transition area the people receiving these services live in. Services that support people living in NDIS transition year 1 areas will have their funding reduced in 2016/17.

Services in NDIS transition year 2 areas will not be affected until 2017/18.

What are the year 1 and year 2 NDIS transition areas?

NDIS transition areas are based on existing Department of Family and Community Services (FACS) districts. The table below shows which districts will transition in years 1 and 2.

Transition year 1

1 July 2016 – 30 June 2017

  • Central Coast
  • Hunter New England
  • Nepean Blue Mountains
  • Northern Sydney
  • South Western Sydney
  • Southern New South Wales
  • Western Sydney

Transition year 2

1 July 2017 – 30 June 2018

  • Illawarra Shoalhaven
  • Mid North Coast
  • Murrumbidgee
  • Northern New South Wales
  • South Eastern Sydney
  • Sydney
  • Western New South Wales
  • Far West

What if my organisation provides statewide services in both year 1 and year 2 locations?

Funding for statewide services may need to be split in order to reduce ADHC funding for people transitioning in 2016/17. This will also ensure funding for people in year 2 locations does not change.

Why is my quarterly funding now being paid monthly?

All services in year 1 areas will now be paid monthly in advance rather than quarterly in advance. This change was made to assist providers to transition towards lodging funding claims with the NDIA on a fortnightly basis.

Why have my year 2 services been changed to monthly payments?

Providers who already receive monthly payments for more than half of their services will also see the remainder of their services converted to monthly payments. This reduces the number of providers that need to manage both monthly and quarterly payments at the same time.

There is no change to the overall amount of funding paid in 2016/17 to year 2 services that have been converted to a monthly payment frequency.

Will my organisation still be paid in advance?

Yes, all payments will still be made either one month or one quarter in advance.

Will my non-output service funding be varied?

No. While the Information Linkages and Capacity Building policy is being finalised, ADHC will continue to fund all non-output services in full until 30 June 2018.

Why is individualised funding being treated differently from block funding?

When funding is attached to an individual, ADHC can cease this as soon as that individual has transitioned to the NDIS.

People receiving block funding are progressively transitioned to the NDIS as a cohort, so funding may not cease at the exact moment they complete their transition.

What is a cohort?

Block funded clients have been grouped into three funding cohorts according to their service types.

The Funding Agreement Schedule 1 is currently made up of multiple Descriptions of Services (DofS) to describe separately funded activities. For 2016/17, all DofS have been grouped into funding cohorts to make the funding variation process easier to manage.

For more details on cohorts, please refer to the ADHC Funding Variations fact sheet.

Can I transfer ADHC funding from one DofS to another?

Yes, funding can be reallocated across services within the same funding cohort. This is to allow providers the flexibility to continue to deliver services with ADHC funding without being constrained by program based funding.

This does not need to be approved by ADHC.

Can a person be funded by the NDIS and ADHC at the same time?

No, this is not possible.

A person who has transitioned to the NDIS will have their own support plan that covers all of their reasonable and necessary supports. Service providers should not be using ADHC funding to support a person that already has a NDIS support plan.

Can my organisation keep ADHC funding after a block funded person has transitioned?

Yes, but only the balance of the month’s payment.

ADHC will reduce the next month’s payment to take into account all of the people that have transitioned in that period, but will not seek to recover funding that has already been paid to support block funded places.

What happens if my organisation supports people who receive services in more than one cohort?

Providers should no longer use ADHC funding to deliver services to people that have transitioned to the NDIS. However, some people that receive multiple services or services from more than one provider may have transitioned before funding associated with them is varied by ADHC.

For example, a service user who was receiving funding for a day program (cohort 2) may also have been funded for respite services (cohort 3). Once they have an approved NDIS support plan in place, they will no longer be in receipt of respite services from their funded provider. The service provider will be able to retain the balance of the month’s payment made on behalf of that service user to assist with managing cash flow.

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. As a result, providers will need to understand and manage the cost of their services under the NDIS.

Will my organisation continue to receive funding for people aged over 65 years?

While they are ineligible for the NDIS, people over the age of 65 will continue to be supported through continuity of support arrangements funded and administered by the Commonwealth Government.

ADHC will continue to pay for people who are over 65 years of age until they transition to these arrangements.

What happens to people under the age of 65 who are ineligible for the NDIS?

People who are under the age of 65 will be referred to appropriate supports by the NDIA. The full range of these supports is yet to be finalised.

If a service provider is concerned that an ineligible person continues to require supports and that an appropriate alternative is not in place, they should notify their ADHC contract manager immediately. The service provider will be asked to continue to provide supports while an appropriate alternative is found. This will be taken into account in the adjustment of funding.

Why is my organisation’s funding being reduced before my clients have transferred to the NDIS?

Variations to funding are being made before people transition to the NDIS because NSW is committed to meeting the transition timetable agreed with the Commonwealth. The scale of the transition and the relatively short timeframes involved means it is not practical to individually adjust payments after each person transitions to the NDIS. Varying funding based on planned transition rates is a much simpler process to manage.

What happens if people do not transition at the same rate at which my funding is reduced?

ADHC will be monitoring the rates at which people and funding transition on a monthly basis throughout 2016/17. If there is a significant difference between actual and anticipated rates of transition (that is, people transition more quickly or slowly than expected) then an appropriate adjustment to the payment reduction can be made.

How will ADHC know people are transitioning as planned?

The NDIA has agreed to share information about the transition process with ADHC. This will allow ADHC to monitor planned and actual transition rates.

What if my organisation is not registered with the NDIA?

It is essential that providers are registered with the NDIA before the start of the funding variation process. Unregistered providers will not be paid by the NDIA for the provision of NDIS services, while ADHC will not be able to continue to support them with funding.

Please refer to the NDIA website for more information: www.ndis.gov.au/

What is the Planned Payments Schedule?

The Planned Payments Schedule is a report that shows the total amount of funding ADHC is currently committed to paying a provider in the 2016/17 financial year. The Schedule can be used for financial planning purposes and to better manage changes to a provider’s cash flow.

A revised Planned Payments Schedule will be sent to providers in the event of any further changes to base funding or to funding variations for the NDIS transition.

How do I make changes to any funding that is listed in the wrong cohort on my DofS and cohorts report?

If the service type listed in a particular cohort is incorrect, providers can ask ADHC to change this so that funding variations are shown in the correct cohort. Any requests should be sent to funding.administration@facs.nsw.gov.au

How do I make changes to funding listed in the wrong transition year?

Providers can ask ADHC to change the location of a service, or to split funding for a service, to reflect the correct transition year.

This request should be sent to funding.administration@facs.nsw.gov.au.

How do I manually calculate my funding variations?

Funding variations are based on the three separate cohorts of services, which will transition to the NDIS at different rates over the course of a year. To calculate your funding variations, you will need to divide your annual payment into monthly payments. You will then need to reduce the monthly payment by the funding variation rates for each cohort.

Cohort 1

For cohort 1, all payments will cease in August 2016. This is because all people in this cohort are expected to have completed their transition by the end of July 2016.

Cohort 2

For cohort 2, payments will be reduced based on two different rates at which people will transition. In the first half of the 2016/17 financial year, 75% of people in this cohort are expected to transition. ADHC will therefore reduce total funding by 75% during that six month period. This means ADHC will need to make a 12.5% accumulating funding reduction each month for six months. The 12.5% reduction is calculated by dividing 75% by six.

In the second half of 2016/17, the rate of people transitioning will slow. The remaining 25% of people are expected to transition over the second half of the year. This translates to a 4.2% accumulating funding reduction per month over that six month period. The 4.2% reduction is calculated by dividing 25% by six.

Cohort 3

For cohort 3, the client transition rates will be reversed. A quarter of people will transition in the first six months of 2016/17 and the remaining 75% will transition in the second half of the year. This means the funding variations will also be reversed. Accumulating monthly funding reductions of 4.2% will be made in the first six months of 2016/17, increasing to an accumulating monthly funding reduction rate of 12.5% over the next six months.

Why doesn’t my manual calculation of payment reductions match the Planned Payments Schedule?

The Planned Payments Schedule is based on calculations that take into account the different number of days in each month. Payment reductions are made on a daily rate.

If you calculated your monthly payments by dividing your annual funding by 12, then you will not have accounted for the uneven number of days in each month.

Your manual calculations may also not exactly match the Planned Payments Schedule if you only use the 4.2% reduction to one decimal place. You will get a more accurate calculation if you use the exact 4.16667% reduction.

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, providers can submit requests for changes to funding listed in the wrong cohort or transition year by sending an email to funding.administration@facs.nsw.gov.au.

ADHC will closely monitor the actual rate of people transitioning to the NDIS against expected numbers. ADHC can adjust funding variations where there is a significantly slower or faster transition rate. This analysis and any potential adjustments will be made on a monthly basis.

Who can I contact if I have more questions about NDIS transition funding variations?

For further information on NDIS transition funding variations, please go to www.ndis.nsw.gov.au, email funding.administration@facs.nsw.gov.au or call 1300 136 067. Service providers can also talk to their contract manager to understand how their services will transition.