Speaking the lingo of the NDIS can sound like a different language. It can be especially frustrating if you’re new to the scheme and don’t have many people around to translate for you.
Finding a top Support Coordinator can be the first port of call, but what happens if you don’t have funding for that? You’ve got to find some things out for yourself which is why we’re putting together a breakdown of fund management.
Self-management, plan-management and agency-management. Huh?
Let’s get clued up.
Fund management – the basics
It might feel like organising a bank account or credit card, but in actuality, it shouldn’t be difficult to choose a way to manage your NDIS funds.
Your NDIS funds are written as a total amount on the front of your NDIS plan, but you’ll see that they’re divided into categories.
These categories are:
- Core Supports
- Capacity Building
- Capital
You might not have all three in your plan, so don’t worry if you only have one of the above.
With these categories, your funds have been divvied out in order to achieve your NDIS goals.
These goals are what you want to achieve with your funding and therefore we need to manage your funding to pay for the supports, therapy, equipment and personal items that you need to improve your life, living with a disability.
So effectively, choosing a fund management option is about choosing HOW you’re going to pay for these things. Either using a third party (plan-managed), using your own money first then getting reimbursed (self-managed) or using NDIS registered providers only and getting the NDIA to pay instantly from your funding.
Still sounds confusing? We don’t blame you. Now for the nitty gritty of all three fund management options.
Self-managed
Choosing self-management for NDIS funds can be a great option. It gives you the flexibility to use these funds wherever as you don’t need to limit yourself to NDIS registered providers.
For example, if one of your goals is to improve your physical fitness or mobility, then group swimming at your local pool can be paid for with your NDIS funds.* Those who use agency-management would not be able to do this, unless the swimming teacher or the swim school had their own NDIS registration.
You can be more creative with your funding, but it means that you, the participant or the participant’s representative, have to pay upfront using your own money first. The NDIA will then reimburse you.
This can be a difficult option to choose if some of your NDIS goals require you to engage with therapy or high-cost equipment. It also does require a bit of admin – remembering to keep the receipts and collate the costs. Also ensuring you know how much you’re spending within a plan’s lifetime. You don’t want to spend it all at once.
With all these things, we believe self-managed comes down to control. Taking ownership of your funds entirely and giving you the ability to even negotiate service fees or seek out better savings (especially if it’s your own cash you’re putting in before the reimbursement).
Make sure you think about all of this before choosing your fund management option.
Plan-managed
Now, plan-management is different.
The way we like to think of it is like having an Accountant specifically for your NDIS funds. But, instead of an Accountants, we call them Plan Managers.
This can be a group of people or one person in particular. They will pay for things using your NDIS funds, look after the financial reporting (that the NDIA may request) and keep track of your funds.
A great Plan Manager will send you monthly reports of it all giving you an overview of how it’s all going.
Plan Managers do need to be NDIS registered, but, much like self-managed plans, they can use your funds flexibly. You’re not restricted to NDIS-registered providers.
The only thing with plan-managed funding is you need to let the NDIS know that this is the fund management you want – well, actually, you need to do this with all of your fund management. But especially with plan-managed as there’s an extra fee included to ‘set up’ the Plan Manager. This comes out of your NDIS funding.
Plan-management seems to be the more popular option, but it’s important you use someone or an organisation you trust. You should still be aware of what’s being spent, when and with who.
Agency-managed
Agency-management relates to the NDIA – National Disability Insurance Agency. And as they are the governing body implementing the NDIS (National Disability Insurance Scheme), they can pay using your funds directly.
The agency can maintain financial records, claim reimbursements and pay your invoices. But, you can only go with NDIS-registered providers so it lacks flexibility.
This option is great as a fuss-free option. It’s pretty much instantaneous as a fund management choice, but it can be restrictive.
For those in metro areas of Australia, there tends to be a lot more choice of NDIS-registered providers, but out in remote communities – like the Kimberley – not everyone has their NDIS registration. And, it’s not something every person or business needs to consider, especially if they’re not just working with NDIS clients.
A good way to determine whether agency-managed will work for you is having a browse of which service providers you’d like to engage with before your NDIS Planning Meeting (where you discuss your NDIS plan and what to expect within it).
Key takeaways
Whichever fund-management route you choose, just make sure you understand the different options.
Don’t be shy to ask questions at your NDIS Planning Meeting, too. There’s no such thing as a silly question with the NDIS – it can be a bit of a minefield.
The main thing to consider is what will be easiest; what will get the most out of my NDIS plan, and what will give me the better overview of how my NDIS funds are being spent? Answer those questions, and you’ll be fine.
If you’d like to get more NDIS translations, or would just like to chat to a member of our team about utilising your NDIS plan for the better, contact us today.
*Examples used in this article may not be relevant for your NDIS funding and goals. Please speak to your Support Coordinator or Local Area Coordinator (LAC) to find out more about making the most of your plan.