Finalising year 1 funding variations April – June 2017

The way ADHC calculates providers’ monthly payments for year 1 NDIS services is changing from April 2017.

In previous months ADHC varied funding based on actual client transition rates using information from the National Disability Insurance Agency (NDIA). The NDIA is now on track to transition all remaining year 1 people to the NDIS. This has meant ADHC can now resume a progressive step down of funding, originally put in place at the beginning of the financial year. ADHC will now focus on finalising variations to all remaining year 1 funding by 30 June 2017.

Stepping down block funding

Payments for all year 1 residual block funding will be varied by 25% in April, 50% in May, 75% in June and then by July 2017 all year 1 funding (100%) will have been varied.

Example: A provider has $2.4 million in annual block funding which means ADHC pays $200,000 per month to the provider. As of March 2017, half of all people identified for year 1 transition have entered the scheme. As a result ADHC varied half of the provider’s funding, monthly payments are now $100,000.

The information below shows how the monthly payments will then be varied for the remainder of the financial year:

April 2017

Payments – $75,000

Variations – $25,000

May 2017

Payments – $50,000

Variations – $50,000

June 2017

Payments – $25,000

Variations – $75,000

July 2017

Payments – $0

Variations – $100,000

If people are transitioning significantly faster than expected ADHC may then vary additional payments. For example, if all remaining people complete the transition by May then no funding will be paid in June.

Varying individually funded clients

Payments for individually funded clients will continue to be varied as they transition individually. The NDIS support plan date will be used as the person’s exit date to vary ADHC funding.

De-identified client data

ADHC will now send providers the Statistical Linkage Keys (SLKs) of people who have transitioned on a fortnightly, rather than monthly, basis. The SLK data will continue to show both block and individually funded clients and the date of transition.
This more frequent and up to date information will help providers plan ahead of time the discussion with NDIS participants about the services they need and the activation of the NDIS support plan.

Where client transition rates don’t reflect planned variations

Providers should contact the NDIA first to discuss why their client transition rate is slower than expected or if there are any NDIS billing issues. ADHC will continue to work with providers on client transition issues in order to finalise variations by the end of June 2017.

ADHC will also regularly review funding variations against the fortnightly SLK data. Providers will be contacted if there are significant issues with the step down of funding.

ADHC will send advice to providers each month showing variations that have been made to block funding. The advice will include a table showing:

  • YTD Payments: this is the total payments made by ADHC for services to support people that have not transitioned this year to date (YTD).
  • April Payment: this is the amount ADHC will pay providers to support people that have not yet transitioned. It is the monthly payment less the 25% variation for April.
  • May Payment: this is the amount ADHC will pay for people that have not yet transitioned. It is the monthly payment less the 50% variation for May.
  • June Payment: this is the amount ADHC will pay for people that have not yet transitioned. It is the monthly payment less the 75% variation for June.
  • YTD Variations: this is the total amount of funding that has been varied by ADHC year to date.
  • April-June Variations: this is the sum of the variations planned for April, May and June.

Providers can obtain copies of their Remittance Advice and Recipient Created Tax Invoices (RCTI) from the Service Portal to reconcile block funding changes for year 1 DofS.

Some service types are exempt from these changes

Non-output services that will be covered by Information Linkages and Capacity Building funding under the NDIS will continue to be fully funded.

Services funded in year 2 locations will continue to be paid in full in the 2016/17 financial year. Planning has commenced to start the transition of year 2 people to the NDIS and the funding variation process that will be applied.

Further information