2013-2014 ANNUAL REPORT

National disability Agency

LEARN… BUILD… LEARN… is committed to delivering Integrity. The Agency is fair and OUR VISION… Our culture the Vision, Mission and Goals, based on our transparent, does as it says and says what BUILD… Optimising social and economic values… it does, so as to build trust and respect independence and full participation for among people with disability, their families people with disability. Assurance. The Agency is committed and carers, our employees, providers and to certainty of funding for high quality, the community. equitable and effective supports that respect the diversity of all people with Our work is underpinned by moving OUR MISSION… disability. towards a more modern technological Building and managing a world-leading approach: National Disability Insurance Scheme for Empowerment. The Agency works all Australians. locally and in partnership with participants • using accessible technology to connect and their families to enable them and with more people, especially in rural and ensure they have choice, control and a remote areas OUR GOALS… voice. • using emerging technologies to

1. People with disability are in control Responsibility. The Agency shares a encourage innovation in supports and have choices, based on the UN mutual responsibility with participants, Convention on the Rights of Persons the community and providers for providing • collecting, analysing and sharing data with Disabilities. high-quality support services which about disability and support services to maximise potential, independence, identify best practice
2. The National Disability Insurance integration and inclusion in the community. Scheme is financially sustainable and • using technology to improve quality and is governed using insurance principles. Learning. The Agency sees every task drive down costs. and interaction as an opportunity to learn
3. The community has ownership, and continually improve performance. confidence and pride in the National The Agency is reflective, asks for and acts Disability Insurance Scheme and the on feedback, and constantly evaluates its National Disability Insurance Agency. performance.

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NDIS year-one summary

The National Disability Insurance Scheme (NDIS) commenced on 1 July 2013. At 30 June 2014, the National Disability Insurance Agency (NDIA) had approved 7316 plans for people with disability, allowing them access to the reasonable and necessary support they require to lead an ordinary life.

The NDIA delivered the Scheme in four trial sites The NDIA Board established its governance in 2013–14: the Hunter in New South Wales, the procedures and implemented an extensive risk Barwon region in Victoria, Tasmania and South management system. The Board oversaw four Australia. During this time, $130.9 million of major independent reviews: support was provided to participants—which is within the funding envelope of $148.8 million. • Operational review to monitor average annualised package costs Average annualised package costs were $34 600 • Capability review to assess NDIA processes, at the end of June 2014, or $38 200 including systems and the expertise of its people to the Stockton large residence—in line with the deliver the NDIS roll out $35 000 average estimated by the Productivity • KPMG review of the optimal transition to full Commission. The NDIA ended the financial year scheme with a surplus of $18.0 million. • Boston Consulting Group review of business capabilities to assess what of the NDIA’s Process improvements mean that time taken for functions can be outsourced to private and participant eligibility determination has fallen non-government providers. from an average of 29.7 days in July–December 2013 to 13.3 days in January–June 2014. And The NDIA National Office in Geelong was opened satisfaction levels of participants in the trial sites by the Prime Minister, the Hon. Tony Abbott MP, are very high—94 per cent rated NDIA planning on 30 April 2014. good, or very good. The NDIA employed 516 staff across the trial At the close of the financial year, there were sites and National Office. Nearly 11 per cent of approximately 1350 NDIS registered service this workforce identified as having disability— providers across the four trial sites, providing compared with around 3 per cent for the supports across diverse areas ranging from Australian Public Service (APS)—and assistance with personal care to support with 53 per cent identified as having a lived accessing and participating in the community, experience of disability. All NDIA workplaces including support with obtaining employment. are fully compliant with the Disability Discrimination Act 1992 (DDA Act). The NDIA used the Sector Development Fund (SDF) to invest approximately $4.5 million At full rollout, it is expected that only 7 per cent in programmes and activities to help both of NDIS costs will be spent on administration, individuals and organisations make the transition with 85 per cent of NDIA staff roles dealing from Commonwealth, state and territory based directly with people with disability. The long-term systems to the NDIS. economic benefits of the NDIS are estimated to exceed its costs, adding around 1 per cent to gross domestic product and saving $20 billion per year by 2035.

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Contents Letter of Transmittal Messages vix LetterMessageof Transmittalfrom the Chair xii Message from the CEO

Bruce Bonyhady AM 15 Enabling legislation SECTION 1 : Chair 16 Overview Year one for the NDIS 19 Supporting people with disability 15 October 2014 22 Achieving strong performance 23 Building the Sector 24 Creating an Insurance Scheme Senator the Hon. Mitch Fifield 25 Establishing an Insurance Capability Assistant Minister for Social Services 25 Building an insurance-based investment culture Parliament House 28 Contributing to national economic reform CANBERRA ACT 2600 29 Creating a new Agency 29 Establishing a new National Office 29 Building a motivated workforce Dear Minister 32 An inclusive and expert Board 33 Independent Advisory Council On behalf of the National Disability Insurance Agency (NDIA), I 34 Building for the future present to you the Annual Report for the reporting year 1 July 2013 to 30 June 2014. SECTION 2 : 39 Discussion and analysis of financial performance 40 Programme 1.1 - Reasonable and necessary support The report provides a detailed description of the NDIA’s Performance report for participants operations during the year as well as financial statements and 40 Major achievements the Auditor-General’s report on those financial statements. 48 External scrutiny 50 Lessons learned The report has been prepared in accordance with the Commonwealth 51 Focus for 2014–15 Authorities and Companies Act 1997 (CAC Act), the associated Orders 52 Key performance Indicators 54 Programme 1.2 – Sector development and support made under the Act, and in accordance with the National Disability 54 Major achievements Insurance Scheme Act 2013. 60 Lessons learned 60 Focus for 2014–15 The report is made in accordance with a resolution of the Directors who 61 Key performance Indicators are responsible, under section 9 of the CAC Act, for its preparation and 62 Programme 1.3 – Agency costs content in accordance with the Finance Minister’s Orders. 65 Major achievements 66 Lessons learned 66 Focus for 2014–15 Yours sincerely 67 Key performance Indicators

SECTION 3 : 70 Part A: Governance framework Facts and figures 71 Responsible Minister 71 COAG Disability Reform Council 71 Joint Select Committee and Joint Standing Committee

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Contents

SECTION 3 : 72 Part B: NDIA Board Shortened forms 164 Facts and figures (cont…) 72 Board committees 74 NDIA Board Members 79 Board indemnities and insurance Glossary 166 80 Part C: The Independent Advisory Council 82 Part D: The NDIA organisation 82 NDIA senior management Index 170 84 NDIA management committees 86 NDIA executive 88 NDIA trial site managers Appendix: List of requirements 172 90 Part E: NDIA people 90 Workplace diversity 91 Staffing statistics 95 Ethical standards 96 Part F: Workforce planning 96 Recruitment 96 Retention LIST OF TABLES 96 Separation 49 Table 1: AAT reviews 2013–14 96 Absences 79 Table 2: Board members’, position, term and meetings attended 97 Employment arrangements 80 Table 3: Council members’ experience of disability 97 SES remuneration 91 Table 4: NDIA staff snapshot 2013–14 98 Training and development 92 Table 5: NDIA staff by location (trial sites/National Office), substantive classification 99 Employee engagement and gender (FTE) 99 Performance pay 93 Table 6: NDIA staff by substantive classification, gender, employment category and 99 Performance management employment status (headcount) 99 People strategy 95 Table 7: NDIA staff with disability and non-disability (30 June 2014) 100 Part G: NDIA facilities and workplace health 97 Table 8: SES remuneration and safety 101 Table 9: Summary of notifiable incidents, investigations and notices under the WHS Act, 100 National Office 1 July 2013 to 30 June 2014 100 Work health and safety performance 101 Reportable items 102 Part H: Reporting obligations 102 Ecological sustainable development 102 Consultancies 102 Contracts 103 Advertising and market research LIST OF FIGURES 103 Grants programmes 103 Internal Audit 42 Figure 1A and 1B: trial site participants by primary disability and state 103 Purchasing policies 44 Figure 2A and 2B: trial site participation by funded support category and state 103 Purchaser–provider arrangements 70 Figure 3: NDIS governance framework

Section 4 : 104 Sustainability reports Scheme sustainability and 114 Financial Statements financial performance

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is sustainable and can be delivered across 2014–15 outlined in this report is helping to Australia. create NDIS 3.0. It and each of its successors will be continually improved, based on knowledge, As of 30 June 2014, the NDIA had approved experience and further research. 7316 plans for people with disability, providing them with the reasonable and necessary Ultimately, responsibility for all of these critical support they require to lead an ordinary life. strategic issues rests with the NDIA Board. The As a result, children and adults with disability Board has established strong governance and are undertaking everyday tasks including risk management foundations, and I want to using playgrounds, learning to drive, catching thank all Board members for their diligence and a public bus, going to the library, and joining commitment to this great enterprise. organisations like the Girl Guides so they can make new friends. People with disability, their And I especially want to thank the NDIA’s families and carers are also being provided with staff, many of whom have a unique degree of the opportunity to enter the workforce. The commitment to the cause of their new agency, human results, measured in gains of personal built up through years of lived experience and independence and, for some, workforce active work to achieve equity for people with readiness, are powerful and transformative at an disability, their families and carers. individual and societal level. I commend this annual report to the Australian A vital feature of the NDIS is that, in addition Government and I commend the work of the The NDIS was to formal supports, the Scheme enables NDIA to those who ultimately own it: the people people with disability to achieve their goals by of Australia. “ providing access to community and mainstream created because services through the assistance of a Local Message from Area Coordinator (LAC). The utilisation of the the current coordinator recognises that the NDIS is as much disability support about community engagement and improved the Chair system is so unfair access to mainstream services, as it is about the provision of funded supports. The Board is As the Chair of the Board of the NDIA it is my committed to embedding the LAC role in the Bruce Bonyhady AM and fragmented pleasure to present the first annual report. Scheme as we build the Scheme for rollout that the Australian across Australia. community Inrequirements,addition to fulfillingthis first ourannuallegislativereport reportingaims to Of course, not all aspects of the NDIS and its demanded change. set out the story of the foundational year of the implementation, so far, are perfect. Evidence NDIS. given to the Joint Standing Committee on the The fundamental NDIS earlier this year shows there are aspects The NDIS was created because the current of the Scheme that need to be improved. This, premise of the NDIS disability support system is so unfair and however, is part of the very nature of a trial is that people with fragmented that the Australian community period. demanded change. The fundamental premise disability, their of the NDIS is that people with disability, their As this report outlines in detail, the NDIA is families and carers are at the heart of the deliberately being built as a learning organisation families and carers Scheme. that grows on the basis of evidence. If the initial are at the heart of Over the past year, the NDIA has been working blueprintsthe Productivitythat beganCommissionwith thecanpioneeringbe consideredwork of the Scheme. tirelessly towards these goals, learning and NDIS 1.0, and the founding design of the Agency building from the trials to ensure the Scheme can be considered NDIS 2.0, then the focus for

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Message from the inhaveourbeenoperations.undertakenA numberthat areof importantnow informingreviews Chief Executive Officer decisionsof the NDIS.aboutAll NDIAthe timingstaff understandand nature thatof growth the organisation will only be successful if we adopt the strategy of ‘learn-build-learn-build’ Our successful first year has laid the and if people with disability are at the centre of foundations to improve the lives of the more everything we do. than 460 000 Australians with disability, particularly by increasing their choices in life, On behalf of the executive team I want to and the many more people who support them. thank the Board for their diligent oversight It has involved a number of significant elements, and leadership, the NDIA’s staff for their hard all of which are outlined in detail in this report. work, passion and resilience in the inevitable environment of flux of a newly created Agency, First—the creation of a national headquarters and our service providers, participants and the for the Agency, based in one of the communities Australian people for their support, patience and it works with, Geelong. More than 500 staff constructive criticism. have been hired and work from locations that are purpose-designed for an Agency like the I would also like to acknowledge the work of the NDIA, with state-of-the-art amenities that disability sector, and the Commonwealth and set the standard for the APS, and indeed all state and territory governments and officials, organisations, in their accessibility for people who have worked closely with us to design the with disabilities. Scheme. Collaborative relationships have, and will continue to, underpin the success of the NDIS. Second—as an agency which operates All NDIA staff increatedline witha stronginsuranceactuarialprinciples,culture,weledhaveby our Finally,the extraordinaryI would likeworkto particularlyof the initialacknowledgestaff of the Scheme Actuary and her team. Infusing this Agency, and the singular contribution of “understand that the culture throughout the NDIA will ensure it Ms Margaret Carmody. These early efforts laid remains well placed to actively manage the the solid foundations on which every organisation will Scheme’s performance and build the essential achievement since has been built. only be successful infrastructure, linkages and processes that if we adopt the willThroughoutensure theourScheme’sfirst year,futureour actuarialsustainability.team Ourachievementsecond yearandpromiseslessons asfurtherwe scalegrowth,up to strategy of ‘learn- have collected data that will enable continual full size in the years ahead. improvements to our operations. build-learn-build’ This process of data analysis and continuous and if people with improvement has already benefitted the NDIS, disability are at the informingmade to thetheAgency’ssignificantoperationschanges inthat were centre of everything January 2014 to improve cost control and David Bowen streamline processes for taking on new we do. participants. These sorts of changes have ensured that the Agency is on budget at the end of its first year and on track to be sustainable.

Third—processes of continual improvement as well as risk-management have been embedded ”

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SECTION 1: Enabling legislation

The NDIS was established under the Year one for the NDIS National Disability Insurance Scheme Act 2013 (the NDIS Act) and commenced on 1 July 2013. The NDIS Act (in conjunction with other laws) gives effect to Australia’s obligations under the UN Convention on the Rights of Persons with Disabilities, and its objectives include:

• supporting people with disability to pursue their goals and maximise their independence and social and economic participation

• developing the capacity of people with disability to participate in the community and in employment

• providing reasonable and necessary supports, including early intervention supports, for Scheme participants

• supporting people with disability to exercise choice and control in the pursuit of their goals and the planning and delivery of their supports

• building a sustainable Scheme which is based on insurance principles.

The NDIS Act establishes the NDIA, which has statutory responsibility for delivering the NDIS. The functions and powers of the Agency are prescribed by the NDIS Act.

The Agency is also overseen by a Board, and is governed by the Commonwealth Authorities and Companies Act 1997 (CAC Act). As of 1 July 2014 the Agency will be governed by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The Board has responsibility for ensuring the proper, efficient and effective performance of the Agency functions; and determining the objectives, strategies and policies to be followed by the Agency. The Agency’s governance structure also includes an Independent Advisory Council (IAC), which is a body that provides advice to the Board on how the Agency is delivering the Scheme.

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OVERVIEW NDIS the During 2013–14, the NDIA delivered the Scheme for in four trial sites: the Hunter in New South One Wales, the Barwon region in Victoria, Tasmania and South Australia. On 1 July 2014, these trial Year sites were expanded to include the whole of the Australian Capital Territory, the Perth Hills in Western Australia and the Barkly region in the Northern Territory.

In its first 12 months of operation, the Agency’s NEW SITE Barkly Region, NT focus was:

• building the NDIA’s systems and capability for delivery of an entirely new and sustainable disability support model, which is based on insurance principles EXISTING SITE • working with people with disability, their South Australia families and carers in each of the trial sites to (for children 14 and under) provide support packages that optimise social NEW SITE and economic participation Perth Hills, WA

• building community linkages and strong EXISTING SITE interfaces with mainstream services for people Hunter, NSW with disability, in particular through the use of LACs

• advancing the creation of a market for support EXISTING SITE NEW SITE based on the principles of choice and control Barwon Region, VIC Whole of ACT for participants.

EXISTING SITE Tasmania (for young people aged 15 to 24 years)

New & existing trial sites

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Supporting people with disability NDIS Nothing is more fundamental to the NDIS than improving the the lives of people with disability. for One Year In its first year, the Agency has focused on • sensitivity to the huge contribution of family delivering the Scheme in the four trial sites to members and carers who provide invaluable best assist people with disability, their families informal supports – the Agency is committed and carers. This involves more than just putting to working with participants, with input from together packages of support—it means their families and carers, when desired by the genuinely communicating with, listening to, and participant, to help those informal supports leveraging the knowledge of the experts who remain sustainable. know best about people with disability—people with disability themselves. Major achievements for the first year include:

When a person becomes a participant of the • establishing seven offices across four trial Scheme it can be the beginning of a long-term sites: the Hunter of New South Wales, the relationship centred on their goals and Barwon region of Victoria, Tasmania and aspirations and supporting their capacity for South Australia maximum social and economic participation. The Agency is focused on building these relationships • 8585 people met the access criteria for the with its participants, initially during the planning Scheme and became participants process and then throughout implementation and delivery of the plan according to the choices • 7316 participants were receiving reasonable and desires of the participant. and necessary supports under an approved plan The Agency’s planning process takes into account these fundamentally important • more participants are increasing their principles: independence, enrolling in accredited courses and obtaining qualifications, and gaining more Tina (right), with Vanessa • engagement in the community – facilitating confidence through acquiring new skills and Photo credit: Stuart McEvoy/Newspix access to community and mainstream increasing their community participation. supports, not only as a way of supporting people with disability, but also breaking down the social contributors to disability Tina: choosing her own support package

Like many of us, Tina, 40 years from an Italian-Australian family, is determined to swim more. And she’s determined to utilise a public pool and aqua-aerobics classes. With cerebral palsy and incomplete quadriplegia, she requires assistance with basic supports, but once she gets going, there’s no stopping her. Tina chooses how she uses supports under her plan enabling her to flexibly use individual support hours so she can live more comfortably and reach her goals. She likes the idea that her plan can be tweaked at regular intervals to ensure she’s getting the right level of support—not too little or not too much.

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Jo: the NDIS is about achieving NDIS the personal goals for One Jo is an Assistant Director of Engagement at the NDIA in South Australia. She’s also Year the mother of Liam, who is almost four years old and has Down syndrome. She has a simple way of explaining what the NDIS has done for her son. If her son could talk, she says, he’d say that what he really wants to do is go down the slide head first. Knowing this, Liam’s Occupational Therapist helped him learn to go down the slide safely. Together with the family, Liam’s goals were shared with his childcare centre and his family bought him a slide at home where he now descends with his mother’s help. ‘The funded supports are important but Liam’s goals are not achieved with funded supports alone. Liam achieved this goal with funded supports for Occupational Therapy and the combination of help from family, practice at the playground and childcare. It might sound like a small goal to many, but it’s a big deal for Liam that he can now enjoy doing things at the playground like all the other kids.’

Shahni: work-ready!

For many years, Maitland mother-of-one Shahni Moore lacked the confidence to look for work after acquiring a brain injury in a bicycle accident at the age of 15. The NDIA asked her what she wanted to do with her life, and when she told them she wanted to work in office administration, they put her in touch with the right course and ensured she was supported through her studies. Now aged 31, Shahni has qualified as a legal secretary with a TAFE certificate in business administration. She didn’t just skim through the course, she passed it with flying colours. Nothing can stop her now, as she looks forward excitedly to getting a job so she can meet new people, use her new business skills and earn a wage. The NDIS investment in Shahni is paying off already.

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Achieving strong performance Building the sector AT Mentors Pilot NDIS Headline results from 2013–14 show that the NDIA’s progress is the An important function of the NDIA is to develop An innovative provider extremely positive. Costs are under control, the Agency is driving and enhance the market, including by facilitating for involving carers and the innovation, research and contemporary best One efficiencies and participant satisfaction is extremely high: practice. During 2013–14, a number of sector- community building initiatives were advanced: Year • $130.9 million of support has been provided to • process improvements mean time taken for Assistive technologies have a huge role participants in 2013–14—which is within the eligibility determination has fallen from an • support provision: at 30 June 2014 there were to play in the future of the NDIS. The AT funding envelope of $148.8 million average of 29.7 days in July–December 2013 approximately 1350 NDIS registered providers Mentors Pilot is a project under the SDF to 13.3 days in January–June 2014 across the four trial sites, providing supports being undertaken by the Independent • the average distribution of package costs at across diverse areas ranging from assistance Living Centre New South Wales in the the end of June 2014 was $38 200 including • satisfaction levels among participants in the with personal care to support with accessing Hunter and Tasmania trial sites. The the Stockton large residence, and $34 600 trial sites are very high, with 94 per cent of and participating in the community, including project aims to formalise the informal excluding Stockton large residence—broadly in surveyed participants responding that they support with obtaining employment line with the $35 000 average estimated by the found the planning process either good, or processes existing for some but not for Productivity Commission very good. • sector development: the NDIA used the all people with disabilities when selecting SDF to invest approximately $4.5 million their assistive technology or home in programmes and activities to help both modification solutions. The project aims individuals and organisations make the to train, recruit, support and develop a transition from Commonwealth, state and Provided funding Average time to territory based systems to the NDIS network of people with disabilities and carers with lived experience of assistive support: process eligibility: • market development: work commenced technology who mentor, inform and to identify and prioritise areas of work and support the decision making of their peers. implement action to grow the market and The project aims to improve participants’ 29.7 DAYS 13.3 DAYS help current providers make the transition to a capacity to make decisions for themselves JUL-DEC 2013 JAN-JUN 2014 market driven business model and to create a new career option for them $130.9M in providing this service. • pricing: in conjunction with National Disability Services (NDS), a methodology for DOWN $ 2013-2014 determining an efficient price for personal- care and community participation support WHICH IS WITHIN THE FUNDING ENVELOPE OF $148.8M 45% was developed. This methodology set an efficient price at a level that aims to enable providers to deliver the high quality supports Satisfaction with Average distribution that participants need and want. The NDIA planning process: of package costs: hasprovidersintroducedduringathetransitiontransitionpriceto thatthe newwill help arrangements. $38 200 94% $ GOOD / VERY GOOD JUN 2014

SURVEYED RESPONSE FROM PLUS $34 600 EXCL. THE STOCKTON LARGE RESIDENCE PARTICIPANTS IN TRIAL SITES IN LINE WITH $35 000 ESTIMATE

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Creating an insurance scheme Establishing an NDIS the insurance capability The NDIS is a scheme based on four insurance principles: for Actuarial estimate of long-term costs: and will encourage and build the The development of a strong insurance capability One vital for driving the focus on outcomes this estimate will be a living reflection capacity and capability for innovation is for Year 1 people with disability and to the long-term of emerging experience of utilisation and outcome analysis. and cost, and will assist the Board success of the Scheme. Accordingly, during and Agency to ensure the Scheme is Investment in community participation 2013–14, the NDIA has focused on establishing financially sustainable. and building social capital: to further an insurance capability, and embedding an 4 support long-term investment, the NDIA insurance culture across the Agency. Long-term view of funding will, over time, invest at a systemic requirements: unlike historic welfare level in addition to providing for To guide the development of its insurance-based 2 schemes, the NDIA takes a lifetime view individual supports. This includes model and continually assess the Scheme’s of the need for support of participants (a) encouraging the use of mainstream liabilities, the NDIA has established its own and Scheme sustainability, and services to increase social and economic independent actuarial team. The Scheme seeks to maximise opportunities for participation of people with disability, Actuary is continually assessing the financial early investment and to support the and (b) building community capacity sustainability of the Scheme and provides NDIA contribution made by families, carers and social capital, which will be management and the Board with information and the community. particularly important for people with on Scheme performance from which decisions disability who are not participants. The can be made to ensure the Scheme remains Investment in research, innovation and ongoing implementation of the National financially sustainable. Sarah: outcome analysis: to support insurance- Disability Strategy by governments will 3 based governance and long-term support this work. The Scheme Actuary is responsible for producing Scheme Actuary planning, the NDIA will invest in research the annual financial sustainability report and quarterly reports, developing a detailed Scheme Actuary Sarah’s involvement monitoring framework of continuous evaluation, in the NDIS goes back to the and ensuring that Agency staff understand and beginning. She was seconded from apply the insurance principles of the Scheme. PricewaterhouseCoopers to work on the Productivity Commission Inquiry that A summary of the Scheme Actuary’s Annual financial sustainability report 2013–14 can be led to the Scheme’s creation back in found in Section 4 of this report. 2010. She believes its goal of meeting the needs of people with disability is Building an incrediblyand believesimportantit’s the NDIS’sand motivatingactuarial insurance-based approach that makes it such an exciting prospect. For the first time, she says, we have person-centred data that allows us investment culture to understand with necessary precision what supports individual participants are Because the NDIS is founded on insurance principles, the NDIA is focused on investing in getting. This is a great advance on the people for the longer-term. Through education, administrative data previous disability training, employment and providing new programmes have had to rely upon, equipment like hoists and communications which told us more about the services technologies, the independence of participants than the users. With our data getting is being lifted in life-transforming ways, resulting richer every day, we’re continually in better quality of life and the development of a improving our understanding of how to sustainable Scheme. provide the supports people need in a sustainable way. 24 | national disability insurance agency | 2014 annual report 25

Chloe: getting Chris: a good NDIS the for her wheels investment One Chloe, who is 19 years old and Chris, who is 48, transitioned to the NDIS in Year has an intellectual disability, July 2013. At his request, the NDIA helped came to the NDIA not having him find a new provider who changed the previously received any focus of his assistance to individual life supports outside of school. and personal skills development, improving She told the Agency in her his ability to budget his own finances and planning sessions that her use public transport. As a result, Chris’s goals were to find a job and independence has increased whilst the get her driver’s licence. One cost of providing the support he needs of the NDIA’s LACs, helped has reduced from $85 000 to $48 000 link Chloe to a disability per annum. The NDIA’s person-centred employment service which has approach gave Chris a voice and enabled organised work experience him to take control of the things that for her at her local IGA matter to him. supermarket and has enrolled her for driving lessons. After two more lessons, Chloe will be going for her licence.

Joseph: looking to refine his artistic skills

Joseph is an award-winning Tasmanian artist who is never without a paintbrush or camera in his hands. With Down syndrome and Autism Spectrum Disorder, Joseph previously needed his mother Lois to help with his daily care, including shaving, washing and at meal times. She was also his only means of getting around, including to his day activities. Both are delighted with the NDIS’s personalised support planning, which Lois says she hopes will help Joseph get extra art tuition through a TAFE or Adult Education Centre. Having the NDIS around also means less stress and greater peace of mind for Lois who is now confident that her son will have more opportunities to participate in society in a safe and caring environment, especially as she gets older and less able to do all she does now for Joseph.

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Contributing to national economic reform Creating a new Agency NDIS the The design and creation of the NDIS make it administration, with 85 per cent of NDIA staff for an important economic reform. As detailed roles dealing directly with people with disability One in reports by the Productivity Commission and PricewaterhouseCoopers, the long-term • it is an exemplar of government only doing Year economic benefits of the NDIS are estimated to what people cannot do for themselves—the exceed its costs, adding around one per cent to Scheme is engaging the whole nation, including gross domestic product and saving $20 billion family, friends, the mainstream community and per year by 2035. community-based service providers, to be part of the solution The NDIS’s design and first year of operations are illustrating the ways in which it will contribute • the method of designing the NDIA—a small to the creation of a more productive as well as national office rapidly scaling up and a series of more inclusive nation: trial sites—is allowing the Agency to uncover and resolve potential problems, especially those • it is efficient—at full rollout it is expected that with major cost implications, at an early stage, only 7 per cent of NDIS costs will be spent on before the Scheme reaches its full size. Establishing a new Building a motivated National Office workforce

In the first 12 months of its three-year As a new Agency, the NDIA had to begin building trial phase, the NDIA has successfully laid its national workforce from the ground up: Girl Guides: helping theinfrastructurefoundationsthatof willa newimprovepiece theof sociallives of • At 30 June 2014, 516 NDIA staff were them be a part of a people with disability: employedOffice. across the trial sites and National caring NDIS Community • Thethe PrimeNDIA NationalMinister, Officethe Hon.in GeelongTony AbbottopenedMP, by • Nearly 11 per cent of the workforce identifies on 30 April 2014—is contributing to Geelong’s as having disability (compared with around renewal and enabling the NDIA to leverage The NDIA isn’t about building a bureaucracy; 3 per cent for the APS) and 53 per cent existing examples of insurance excellence in it’s about building communities that include identifies as having a lived experience of the region people with disability as true equals. One of the disability—contributing to the Agency’s aims of being an employer of choice for people with Agency’s younger participants, a 12-year-old • All NDIA workplaces, including the new disability and ensuring the Scheme is built on girl with developmental support needs, has let National Office, are fully DDA Act compliant— an understanding of and connections with the us show how. The Agency’s worked with her meeting the Scheme’s aim of setting a new lives of Australians with disability. local Girl Guides to help them understand how standard for Australians with disability in employee and participant accessibility. they can make her feel a valued member of • The Agency has been diligent in hiring people their active troop. The NDIS approach has also with disability into peer support and planner supported her to take part in dance and drama roles, and regards diversity as essential to classes and participate in her local library’s BARK making its workforce stronger. therapy dog programme to improve her reading and writing skills and assist with her schooling. • A low voluntary separation rate (the measure Her parents believe this will develop her of people choosing to leave employment in confidence, improve her ability to communicate the NDIA) of 6.9 per cent in 2013–14 reflects the passion that the Agency’s staff have for and help her make friends. their work.

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Petra: putting hope Heidi: from raising NDIS the into action awareness to capacities for Qualified lawyer, social worker, mother of two adult children One Petra is a Senior Advisor in the Governance Section of the and former disability activist Heidi had spent years searching NDIA and provides high-level administrative support to the Year for professional work to match her qualifications but found organisation’s decision-making bodies, including the IAC and employers too risk-averse to take her on. Now at the NDIA the Executive Management Group (EMG). Like many of its as Regional Support Officer in the Hunter site, Heidi has the employees, Petra actively sought a position with the Agency job of contacting participants who need a support plan and in late 2012 in Canberra, and subsequently relocated to the assisting them with putting their plans into action. It’s a highly Agency’s National Office in Geelong. Petra relishes her new varied task, involving assessments for wheelchairs and other life in Geelong and being part of the NDIA family. equipment, finding speech pathology and other therapies, or education and training courses, and helping find jobs. Part Petra’s commitment to her role stems from her lived of Heidi’s role is to help connect people with disability with experience of family members with disability, including her community organisations—which might be local youth groups, older brother, Jarrod, who lives with mild cerebral palsy and nippers, computer games clubs or craft groups. This is where her visual impairment. Her motivation comes from witnessing experience as an activist is useful—because she understands her brother’s ongoing resilience and community work— that success is often about building awareness. ‘People usually having dedicated 10 years of service to the New South don’t have to do much to include people with disability,’ she Wales State Emergency Service—and this inspires her to says; ‘instead of just seeing a disability, they just need to see a be part of a Scheme designed to provide a better life for little boy or girl who wants to get involved.’ people with disability and their families. Petra hopes that facilitating independence, self-management and genuine community engagement will build an Australia which sees disability differently. To Petra, the NDIA is about more than providing reasonable and necessary supports to people with disability—it is about affording people the dignity of Jennifer: this is ‘choice and control’ over their own lives and helping them re-imagine their futures. something government Petra previously worked as a Case Manager to provide should be doing direct support for people with psychosocial disability and commenced a Masters of Arts in Social Policy at the Like many who work at the NDIA, Jennifer has a family University of Sydney. She then joined the NDIA’s Legal Team member who may need the NDIS’s help, but that’s not the through a six-week internship offered via the University, sole or even main reason why she joined the Agency. Jennifer where she had the opportunity to draft NDIS Rules, which is a believer in government, and she believes government are legislative instruments providing the scaffolding to the has no worthier task than helping its citizens live with dignity. Scheme, and the first tranche of Operational Guidelines. She says the principles of the NDIS, like choice and control, Petra is also an active contributor on the policy front and to are clear and settled; the task now is to turn those lofty the Agency’s culture, having championed a Mental Health ideals into a reality. It’s a duty she has thrown herself into, First Aid Training course for Agency staff including trial first as part of the legal team helping negotiate the NDIA’s site staff at the ‘front line’, and is an active member of the legislation and rules, and now as the Executive Officer to the National Office Social Club. Petra is committed to growing CEO. with the Agency and building an optimal NDIS for all Australians.

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An inclusive and expert Board NDIS the The NDIA reports to an independent Board whose members are jointly nominated by the for Commonwealth, states and territories. One The Board is responsible under the NDIS Act for Year ensuring the proper performance of the Agency’s functions. Its members have a deep and highly relevant range of skills and experience across business, government and the not-for-profit sectors; and across insurance, economics, disability, human services and health.

The current members, appointed for three-year terms commencing on 1 July 2013, are:

• Chair—Mr Bruce Bonyhady AM • Dr Rhonda Galbally AO • Ms Geraldine Harwood • Mr John Hill PSM • Mr Glenn Keys Independent Advisory Council • Mr Martin Laverty • Ms Fiona Payne • Mr John Walsh AM. The IAC was established in June 2013 under the In 2013–14, the Council considered issues related NDIS Act to provide advice to the NDIA Board to how the Agency has built into its operations: One of the crucial acts of the Board in its first from the experience and networks of members. year was the establishment of strong governance Its role is to advise the Board of on-the-ground • choice and control—how participants are foundations, which are reflected in the NDIA’s first issues and the experiences of support providers experiencing choice and control over the strategic plan (2013–16 Strategic Plan). and participants related to the NDIA’s operations. supports they receive

Current members of the Advisory Council are: • restrictive practices—providing feedback to the NDIA on issues to consider related to the • Principal Member – Dr Rhonda Galbally AO National Framework for Reducing the Use of • Dr Ken Baker Restrictive Practices in the Disability Sector • Mr Dean Barton-Smith AM • Ms Jennifer Cullen • self-management—examining functional • Mr Kurt Fearnley OAM ways in which participants’ self-management • Ms Lois Gatley of their supports can be increased • Ms Sylvana Mahmic • Ms Janet Meagher AM • co-design—through the holding of roundtables • Ms Joan McKenna-Kerr that engage community members in • Dr Gerry Naughtin discussions about their experience of the • Mr Michael Taggart Scheme. To date, two successful roundtables • Mr Dale Reardon. have been held in Tasmania, with the next being held in the Hunter and Barwon region

• participant outcome measurement— providing support for developing an outcomes framework in line with the NDIS Act and the 2013–16 Strategic Plan.

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Building for the Future NDIS The nature of the NDIA’s birth as a transition Sector development and support the organisation overseeing a limited but increasing for number of trial sites makes it first and foremost a • Work will continue on the development of a One continuous-learning organisation. scalable, sustainable and effective full scheme operating model. Year There are many big tasks ahead in the short to medium term: • Work is underway to ensure those people not requiring formal supports are comprehensively Reasonable and necessary supported by community and mainstream services and the Scheme’s sustainability is support for participants assured.

• From 1 July 2014, participants may ‘roll-up’ • Work on building a market for disability or ‘bundle’ supports to increase flexibility in services will continue throughout 2014–15 for the way they use their funds. The Agency both demand and supply. will introduce further options for bundling throughout 2014–15. • The Agency is working with the Department of Social Services (DSS) to develop a workforce • Improving interaction with Indigenous and strategy for the disability sector. This strategy culturally and linguistically diverse (CALD) will ensure that there is a sufficient supply Australians will be a priority in 2014–15. of people with the right values and skills to provide the services required by participants. • A variety of new operating models will be trialled in the Agency’s three new sites (Perth Agency costs Hills, the Australian Capital Territory and the Barkly Region, Northern Territory) and the Siobhan with Paralympian and NDIS Independent Advisory Council member Kurt Fearnley. • The Agency will develop an outcomes Photo credit: Chris Munro/Red Hot Shotz MyWay model in Western Australia. framework to measure individual participant outcomes. • The Agency will reinvigorate co-design so that the Scheme is fully inclusive of people with • The actuarial team is developing a lifetime disability. cost estimator to assist planners with developing innovative ways of providing Siobhan: aiming for the Paralympics • The Agency will undertake further work to funded supports. develop strategies for supporting individuals with a psychiatric condition under the Scheme. Hunter teenager Siobhan’s dream of representing Australia at the Paralympic Games is even closer thanks to the support of the NDIS. The 14-year-old has just made the Australian Paralympic Committee’s Targeting Tokyo 2020 high-performance development squad.

Siobhan, who has severe cerebral palsy requiring use of a power chair and communication device, plays boccia and is now able to access a ramp assistant to help with her training.

The NDIS has given Siobhan and her family flexibility and control with their disability support. Their plan also includes funding for activities that develop Siobhan’s confidence and independence.

Siobhan is one of 2300 Hunter locals to have an individualised NDIS support plan in place in the first year of the Scheme’s trial.

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SECTION 2: This section of the 2013–14 Performance report Annual Report covers the Agency’s performance in areas for which activity is measured across the NDIA. This includes detailed performance reports based on the outcome and programmes framework and performance information set out in the 2013–14 Portfolio Budget Statements and Portfolio Additional Estimates Statements 2013–14.

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The Agency has one outcome against which it reports in the 2013–14 Annual Report: Discussion and analysis of financial performance Outcome 1—To implement a National Disability Insurance Scheme that Completion of annual financial Financial outcome 2013–14 provides individual control and choice statements in the delivery of reasonable and In 2013–14, the Agency received income of $276.5 million and achieved an operating surplus necessary care and supports to improve The Audit and Risk Committee endorsed the of $18.0 million for the year. signing of the Financial Statements and the the independence, social and economic Australian National Audit Office (ANAO) issued an At 30 June 2014 the Agency held $122.3 million report participation of eligible people with unqualified audit opinion on 24 September 2014. in cash or cash equivalents. The cash was disability, their families and carers, and primarily generated by a delay in expenditure Scheme performance statement from sector development funding while a associated referral services and activities. strategy for expenditure was developed, and Performamce As at 30 June 2014, 8585 participants were delays in participant claims as a result of Scheme determined eligible for the Scheme of which start-up and new arrangements with providers 7316 participants had an approved plan. and jurisdictions. The Agency measures its performance against this outcome $285.4 million of support has been committed under three result-area programmes: to these participants with approved plans. Of this Independent entity $285.4 million, it is estimated that $130.9 million • reasonable and necessary care and support for (46 per cent) was provided in 2013–14 (including participants 2013–14 is the first year of operation as a actual paid to date). The funding envelope • sector development and support legally separate and financially independent based on the bilateral agreements for 2013–14 • Agency costs. entity. During the year the NDIA met all of its is $148.8 million, including both cash and in- financial targets and implemented policies and kind. Overall, for participants who have entered The Agency’s performance against these specific procedures for governance and financial control, the Scheme in the first 12 months, committed programmes, including key performance indicators (KPIs), as well as appointing all corporate support support for 2013–14 is around 88 per cent of the is set out below. The KPIs are those contained in Portfolio personnel. funding envelope. Additional Estimates Statements 2013–14, and reflect the Integrated NDIS Performance Reporting Framework Annex to the Intergovernmental Agreement on NDIS Launch. As Sources of funds 2013–14 the Agency is only in its first year of operation, this Annual Report does not include actual results achieved for the The Agency was primarily funded through Agency in 2013–14. Instead, commentary and relevant $198.4 million cash received from the statistics are included against each KPI. Commonwealth Government and $48.7 million cash received from state and As a crucial part of the Agency’s role in building the territory governments. In addition, the Victorian NDIS based on lessons learned from the trial sites, each Government contributed $4 million to assist in programme also contains an assessment of the operational the set-up of the National Office in Geelong. changes that have been made during the 2013–14 financial The Agency also received $23.3 million of in-kind year. income from the Commonwealth, state and territory governments in the form of provision In addition to the KPIs in the Portfolio Additional Estimates of services. Statements, the Board has developed a 2013–16 Strategic Plan against which it assesses Agency performance and Scheme success. The Board has provided its first report against the goals in the Strategic Plan, which can be accessed at www.ndis.gov.au.

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Programme 1.1 – Reasonable and Josh: living independently necessary support for participants Josh is a 26-year-old from Newcastle who was born with Down syndrome. Major achievements Like most young men, Josh wanted to live independently from his parents in his own home. Last year Josh and his family found a group home for Josh to rent with his mates Michael and Fraser. The home, in close proximity to public transport and Trial sites supermarkets, allows them to live more independent lives, reassuring their parents Tasmania that their housing is secure for the future. The NDIA began operations on 1 July 2013, when In Tasmania, the trail stage of the NDIS covers report it opened four trial sites—Barwon in Victoria, young people across Tasmania aged between 15 The NDIS is helping to provide funded supports for the boys—Josh and his mates are Hunter in New South Wales, Tasmania and South and 24 years. A key focus of the Tasmanian site is able to choose their own carers to come into the home and teach them important Australia. The location or cohort of participants improved supports to transition participants from life skills. They are now learning to cook, manage their finances and complete the that enter the Scheme at each site is determined school, to further education, vocational training, household chores. Josh and his friends have surprised their families with the progress by legislative rules based on bilateral agreements employment, or to more involvement in the Performamce they have made since moving out of home. between the Commonwealth and each of the community. As at 30 June 2014, the Tasmanian host jurisdictions. trial site had 833 eligible participants, with 786 participants receiving reasonable and necessary As at the 30 June 2014, 8585 participants were support under an approved plan. eligible for the scheme and 7316 participants Josh with his father Phil. Photo credit: Dean Osland/Fairfax were receiving reasonable and necessary South Australia supports under an approved plan. In South Australia, the first year of the trial focused on children from across the state aged The Hunter, New South Wales under six years with significant and permanent The NDIS commenced in the Hunter, NSW on disability or who would benefit from early 1 July 2013. Between 2013 and 2016, over intervention. As at 30 June 2014, South Australia 10 000 people in the local government areas had 1921 eligible participants, with 1355 of Newcastle, Lake Macquarie and Maitland will participants receiving reasonable and necessary access the Scheme. As at 30 June 2014, the support under an approved plan. Hunter trial site had 2612 participants who were eligible for the Scheme, and 2268 participants under an approved plan.

The Barwon Region, Victoria The first stage of the NDIS in the Barwon area commenced for residents living in the local government areas of City of City of Greater Geelong, the Colac-Otway Shire, the Borough of Queenscliff and the Surf Coast Shire. By 1 July 2016, all Barwon area residents with significant and permanent disability—around 5000 people—will have access to the NDIS. As at 30 June 2014, the Barwon trial site had 3219 eligible participants who were eligible for the Scheme, and 2907 participants who were receiving reasonable and necessary supports under an approved plan.

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Profile of NDIS participants

People with intellectual disability (including Down syndrome and other intellectual or learning disability) represent the highest proportion of approved plans.

People with Autism and related disorders represent the second highest proportion of approved plans, (higher in South Australia and Tasmania because of the younger cohorts). In South Australia, there are commensurate rates of developmental and global developmental delay, reflecting the younger cohort (Figure 1A and 1B).

FIGURE 1A: TRIAL SITE PARTICIPANTS BY PRIMARY DISABILITY AND STATE FIGURE 1B: TRIAL SITE PARTICIPANTS BY PRIMARY DISABILITY AND STATE report 3% 1% OTHER PSYCHIATRIC 1% 3% DEAFNESS/HEARING LOSS 2% 1% SCHIZOPHRENIA OTHER PSYCHIATRIC MULTIPLE SCLEROSIS DEAFNESS/HEARING LOSS 4% SCHIZOPHRENIA 2% OTHER PHYSICAL Performamce 1% OTHER SENSORY / SPEECH 5% OTHER PHYSICAL 32% OTHER SENSORY INTELLECTUAL 2% GLOBAL DEV. DELAY 47% 3% / SPEECH DISABILITY 8% CERBRAL PALSY INTELLECTUAL DISABILITY 2% GLOBAL DEV. DELAY NSW 2% DEVELOPMENTALDELAY TAS TOTAL: 2268 TOTAL: 786 6% CERBRAL PALSY 6% 21% OTHER NEUROLOGICAL AUTISM AND DISORDERS 3% DEVELOPMENTAL DELAY RELATED DISORDERS 30% 14% AUTISM AND OTHER NEUROLOGICAL DISORDERS RELATED DISORDERS

3% 5% DEAFNESS/HEARING LOSS 4% OTHER PHYSICAL DEAFNESS/HEARING LOSS 4% 1% OTHER PSYCHIATRIC MULTIPLE SCLEROSIS 11% SCHIZOPHRENIA INTELLECTUAL DISABILITY 4% 8% OTHER SENSORY / SPEECH 3% OTHER PHYSICAL OTHER SENSORY / 33% 3% SPEECH INTELLECTUAL DISABILITY 14% 33% 2% GLOBAL DEV. DELAY AUTISM AND GLOBAL DEV. DELAY SA VIC RELATED DISORDERS TOTAL: 1355 5% CERBRAL PALSY TOTAL: 2907

24% 7% 6% DEVELOPMENTAL DELAY AUTISM AND CERBRAL PALSY RELATED DISORDERS 10% 16% 3% OTHER NEUROLOGICAL DISORDERS DEVELOPMENTAL DELAY OTHER NEUROLOGICAL DISORDERS

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The supports in approved participant plans assist with a number of aspects of daily life. Most commonly (in dollar terms), funded supports assist participants with communication, self- care, community (social and civic), general tasks and demands, and mobility. Figure 2A and 2B shows a breakdown by funded support category of supports provided to participants at each of the four trial sites.

FIGURE 2A: TRIAL SITE PARTICIPATION BY FUNDED SUPPORT CATEGORY AND STATE FIGURE 2B: TRIAL SITE PARTICIPATION BY FUNDED SUPPORT CATEGORY AND STATE report NSW TAS

COMMUNICATION 71% COMMUNITY - SOCIAL & CIVIC 56% SELF-CARE 59% GENERAL TASKS & DEMANDS 55% Performamce COMMUNITY - SOCIAL & CIVIC 45% COMMUNICATION 53% GENERAL TASKS & DEMANDS 43% SELF-CARE 52% MOBILITY 27% MOBILITY 23% DOMESTIC LIFE 21% DOMESTIC LIFE 19% INTERPERSONAL RELATIONSHIPS 12% EMPLOYMENT 17% EMPLOYMENT 11% LEARNING & KNOWLEDGE 7% LEARNING & KNOWLEDGE 3% INTERPERSONAL RELATIONSHIPS 7% EDUCATION 1% EDUCATION 5% 0% 20% 40% 60% 80% 0% 20% 40% 60% 80%

SA VIC

COMMUNICATION 92% SELF-CARE 66% Redo SELF-CARE 37% COMMUNICATION 65% MOBILITY 29% COMMUNITY - SOCIAL & CIVIC 60% COMMUNITY - SOCIAL & CIVIC 22% GENERAL TASKS & DEMANDS 53% LEARNING & KNOWLEDGE 18% MOBILITY 37% GENERAL TASKS & DEMANDS 12% DOMESTIC LIFE 27% DOMESTIC LIFE 5% INTERPERSONAL RELATIONSHIPS 19% INTERPERSONAL RELATIONSHIPS 4% EMPLOYMENT 11% EDUCATION 1% LEARNING & KNOWLEDGE 9% EMPLOYMENT 0% EDUCATION 4% 0% 20% 40% 60% 80% 0% 20% 40% 60% 80%

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The NDIS in remote South Australia

One of the NDIS’s most important responsibilities is to improve disability services in remote Australia. In 2013-14 the South Australian trial site established two projects with Indigenous families and carers of children with disability, in the Anangu Pitjantjatjara Yankunytjatjara Lands ( APY Lands ) and in the Maralinga Tjaruta Lands in the Yalata and Oak Valley communities.

The APY Lands project is run in partnership with the Ngaanyatjarra Pitjantjatjara Yankunytjatjara Women’s Council in Alice Springs. The Yalata and Oak Valley project report is run in partnership with Tullawon Health Service and Kakarra Wilurrara Health Alliance Health Alliance. The projects work with local contacts with existing links to the communities, to coordinate and support the planning process and to make recommendations including for delivery of supports. Performamce

The project in the APY Lands is working with senior community leaders who provide advice on the introduction of the scheme to their communities including translating the principles and concepts of the scheme in a culturally appropriate way using art and the local Pitjantjatjara and Yankunytjatjara languages and explaining descriptions of disability so they are readily understood by local community members.

Nadiaku Disability: Drawing by Margaret Smith and Valerie Foster, NPY Women’s Council , 2014 Vanessa and Tayla at home. Photo credit: Craig McCallum Tjitji Atunymankupai: Drawing by Anne Jack, NPY Women’s Council, 2014

Tayla: her mum has been able to return to work

Vanessa and Craig are the proud parents of two beautiful girls, Jenna and Tayla. Their youngest, Tayla, has Kleefstra Syndrome, a rare genetic abnormality that means she is unable to walk without support, is non-verbal and incontinent. She has also been diagnosed with Autism.

Tayla’s NDIS plan covers funding for carers, therapists, continence products and equipment in their home. Tayla’s carers and the family are encouraging Tayla to be more independent with her self-care. To aid in the process, an NDIS planner has helped the family to make home modifications to assist Tayla, including a special toilet seat, hand-rails and a stair lift. The family has experienced new-found flexibility as a result of these provisions, which is particularly helpful when family circumstances change and Tayla requires different hours of care from week to week.

This NDIS support has allowed Vanessa to return to work part-time and contribute more to the community.

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External scrutiny

The AAT published the reasons for its decisions in the two matters that went to hearing, as shown in Table 1.

TABLE 1: AAT REVIEWS 2013–14

MATTER DECISION UNDER REVIEW AAT DECISION Mulligan and the Access - whether the Agency decision affirmed – the report National Disability applicant met the AAT held that while the applicant’s Insurance Agency substantially reduced capacity for functioning in the areas [2014] AATA 374 functionality capacity of mobility, self-care and social (13 June 2014) requirement in s 24(1)(c) interaction is reduced, it was not The NDIA welcomes external scrutiny of its Commonwealth and state governments. One of satisfied that his capacity in those Performamce operations and review of its decisions as a the complaints was subsequently withdrawn by areas was substantially reduced. critical part of the Agency’s commitment to the complainant. The AHRC terminated the other continuous learning and improvement. The complaint, after determining that there was Young and the Supports in plan – whether a Agency decision affirmed – the AAT Agency recognises that especially during the no reasonable prospect of the complaint being National Disability portable oxygen concentrator held that these supports are not transition from trial to full scheme, external settled by conciliation. Insurance Agency and insulin pump are most most appropriately funded by the scrutiny will play an important part in improving [2014] AATA 401 appropriately funded by the Scheme, observing that the fact that the NDIA’s performance. Administrative Appeals Tribunal (20 June 2014) Scheme, and are not more the health system does not fund what appropriately funded by is essentially clinical treatment does Joint Standing Committee on the The Administrative Appeals Tribunal (AAT) can, the Health System as per not make it the responsibility of the in response to applications, review decisions s 34(1)(f) Scheme. NDIS made by the NDIA under the NDIS Act, including decisions about whether a person meets the In April 2014, the Joint Standing Committee access criteria to become a participant in the on the NDIS commenced an enquiry on the Scheme, the supports provided under the status of implementing the NDIS. As part of Scheme and the registration of providers of its enquiry, the Joint Standing Committee support. Information Commissioner Information Publication Scheme conducted hearings at each of the trial sites and at Parliament House. The Committee released its In the first year of the Scheme the AAT received There have been no judicial decisions or decisions Agencies subject to the Freedom of Information report on 29 July 2014. The Agency’s response to 18 applications for review of Agency decisions, of by the Australian Information Commissioner Act 1982 (FOI Act) are required to publish this report is available at www.ndis.gov.au. which nine related to access and nine related to or Privacy Commissioner affecting the Agency information to the public as part of the the supports funded under plans. during the year. Information Publication Scheme (IPS). This Ombudsman and human rights requirement is in Part II of the FOI Act and has As at 30 June 2014 seven of the applications replaced the former requirement to publish complaints for review had been finalised, and 11 matters a section 8 statement in an annual report. remained undecided. Of the finalised matters, Each agency must display on its website a The Commonwealth Ombudsman received two two proceeded to a full hearing where the AAT plan showing what information it publishes complaints about the Agency during the year. affirmed the Agency’s decision, one was varied in accordance with the IPS requirements. The The Agency provided file material and responses by the AAT with the agreement of the Agency NDIA’s IPS can be accessed at: www.ndis.gov.au/ to the Ombudsman’s questions. However, the and the participant seeking review, and four our-information-publication-scheme-entry. Ombudsman had not made any findings as at were dismissed by the AAT because the decisions the end of the financial year. being challenged had not been through internal review by the Agency (which must happen before The Australian Human Rights Commission a person can seek AAT review). (AHRC) received two complaints in which the Agency was named as a party, together with the

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Lessons learned

In the first six months of operation, the Revising early intervention guidelines. The Agency learned important lessons about Agency’s approach to supporting participants determining reasonable and necessary support who require early intervention has been for participants. A critical operational review refocused to make it clear that early intervention was undertaken in January 2014 by the Board should be considered in all cases, not just early in and the NDIA, which changed the way the a diagnosis or in early life. Agency determines supports for participants and improved the Agency’s business model. Implementing a Service Charter. The Highlights include: NDIA is revamping its service standards and report expectations. This will be complemented by the Streamlining access. The Agency’s process for development of an internal NDIA Quality Action assessing eligibility for the Scheme was slowing Plan, and KPIs for NDIA staff on responsiveness participant intake. In response the Agency to enquiries and complaints. The new service simplified its processes by: charter will be available on the NDIS website Performamce once finalised. • reducing the need for evidence of the functional impact for many disability types Expanding pre-planning sessions. These Lynne with Stephanie Gunn, Barwon Trial Site Manager sessions assist potential participants and their • developing clearer guidance for planners on families and carers to understand the planning eligibility requirements process and to think and talk with the people who are important to them about what they Focus for 2014–15 • recognising equivalence eligibility for some want to have in their plan. people in state and Commonwealth disability Bundling supports. After a full year of Trialling new operating models. Operating programmes where the eligibility criteria Releasing an NDIS planning workbook. These operations, the Agency identified that models at the Agency’s three new trial sites— matches that of the Scheme workbooks assist participants to identify their participants required greater flexibility in their Barkly in the Northern Territory, Australian Capital needs, goals and current supports in order to plans—this was always envisaged when the Territory and Perth Hills in Western Australia—will • working with the states to gather existing develop their plans. Scheme commenced, but was constrained by trial combining planner and LAC roles to achieve information about participants’ support needs. the Agency’s IT system. To resolve this issue, continuity of relationships and streamlined participants with plans from 1 July 2014 will processes so that people have less or more Increasing emphasis on informal supports. In be able to ‘roll-up’ or ‘bundle’ supports into support during the planning process according to the first quarter, the costs of the plans approved ‘personal care’, ‘community access’, ‘transport’ or their needs. The MyWay site in Western Australia were found to be above the average annualised ‘interpreting and translating’ to increase flexibility will also serve as another means of testing package cost used for modelling Scheme in the way they use their funds. Further options operating models, ensuring the NDIS ultimately funding. A review of decision making found that for bundling will be introduced throughout adopts the best model. early plans included an over-reliance on formal 2014–15. supports. Changes were made to encourage Reinvigorating co-design. The NDIS was planners to consider the role of community and Working with Indigenous and CALD designed on a foundation of co-design. The mainstream supports as well as formal supports. participants and their communities. A priority of Agency will reinvigorate co-design, promote These changes also reflect the fact that the NDIS the Agency in 2014–15 is to improve interaction continuous learning and make changes where is as much about community engagement and with Indigenous and CALD Australians. needed so that the Scheme is fully inclusive of access to mainstream services as it is about the Indigenous Australians have some of the highest people with disability. The Agency values input provision of funded supports. incidences of disability in Australia. from all stakeholders and will continue to use co-design processes to inform improvements Improving consistency and quality. An internal The Agency is currently developing both an to operational processes. This open approach NDIA Quality Action Plan was implemented Indigenous and Rural and Remote Service establishes the need for including people with to enable the NDIA to better capture and Delivery Strategy and a CALD Strategy. These disability in any design of the best possible analyse participant satisfaction feedback, then strategies will ensure that the NDIA’s delivery is solutions. use this information to improve the Agency’s based on, and adapted to, the differing needs of performance. people with disability.

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Key performance indicators Ella: taking art classes to improve Programme 1.1 Objective: motor-skills and confidence To deliver the National Disability Insurance Scheme to ensure people with disability are in control and have choices to appropriately support their independence and social and economic participation. There are many stories from NDIS trial sites about the opportunities for participants and their families to lead an ordinary life. Five-year-old Ella’s is just one of them. KPI ACTIVITY (as demonstrated through the deliverables) Ella was born with spinal muscular atrophy, a genetic condition causing spinal cord Participants in the NDIS • Since commencement on 1 July 2013, the NDIA has supported participants to achieve nerves to deteriorate, weaken and eventually die. While Ella has one of the less-severe achieve their goals their life goals, independence and social and economic participation. types of the disease, she requires a wheelchair and cannot stand or walk for long periods. for independence and report social and economic • Central to the planning process is the identification of a participant’s goals. This is the participation basis for identifying the support a participant needs, and (where involved) how the LAC Ella cannot pursue ballet classes like her older sister but she has an interest in and a can assist to identify suitable community and mainstream services. talent for art and craft. • Over the past year, the NDIA has supported participants to engage in independent activities, including study, training, job-searching and volunteering. Participants have Performamce Part of Ella’s individualised NDIS plan includes support for community art classes also been supported by LACs who work to link them with community and mainstream services to increase independence and minimise reliance on formal supports. designed for youngsters. The class has been the key to building Ella’s confidence. Ella’s plan also includes in-home support and hydrotherapy. Her plan will be regularly • To support a goal-based approach, the NDIA has expanded its support for participants with pre-planning activities, ensuring that they are well-equipped to develop an reviewed and adjusted as she develops. individual plan. The NDIA plans to continue encouraging pre-planning and goal-based plans through the funding of individual capacity building supports via the SDF.

• The NDIA is developing tools to collect qualitative data and measure participant Budding artist, Ella, 5, practices her skills with sister, Ava, 7, at their Adelaide home. outcomes, including an outcomes framework which is being developed by the Photo credit: Dean Martin/Newspix Scheme Actuary, in consultation with the IAC.

• During 2013–14, the NDIA funded the Ngaanyatjarra, Pitjantjatjara and Yankunytjatjara Lands Women’s Council to assist Indigenous people with disability and their families and carers to understand how to develop appropriate or identify reasonable and necessary elements of a package.

Increased mix of support • Each participant’s plan is individual and there are few restrictions on how the options and innovative participant chooses to access support that is reasonable and necessary. approaches to provision of support in response to • The understanding of support is based on insurance principles, which means that assessed need innovative supports are encouraged if they lead to positive results in the longer-term and are consistent with Scheme sustainability.

• The Board expects the range of supports participants choose will increase as the market grows in response to the Scheme. This will be supported by a market development strategy currently being prepared by the Agency.

• As the Scheme progresses, greater information will be available on the range of innovative supports that are adopted by participants.

Participants in the • Participants are increasingly managing their own plans, making informed choices and NDIS are able and are working with planners and family to identify their goals. supported to exercise choice • Currently two per cent of people solely self-manage all of their plan and 26 per cent self-manage some parts of their plan. The Agency is working with the IAC to understand issues impinging on the capacity of people with disability to self-manage.

• It is anticipated that the funding provided to individual capacity building initiatives through the SDF will increase the capacity of participants to confidently exercise choice and control.

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Programme 1.2 – Sector development and support Major achievements

• works with local communities to extend the Sector Development Fund In addition, funding will be provided to DSS to Community inclusion and support a National Workforce Strategy for the capacity of services and the community as The SDF has been established to assist the disability sector. capacity development a whole to meet the needs of people with disability sector—people with disability, families, disability that are not currently being met and report The Community Inclusion and Capacity carers, advocacy groups and service providers— The NDIA is currently developing a to facilitate access to those services. Development (CICD) fund for the 2013–14 transition to the new arrangements for disability comprehensive disability services and financial year was utilised across the trial sites support under the NDIS. Approximately $149 million supports Market Design Strategy. The Agency During the first 12 months of operation, several to fund projects that assisted not-for-profit and has been made available for five years from is considering ways the SDF can support this LAC models have been trialled, including LAC community organisations to increase social services being outsourced to community Performamce 2012–13 and approximately $4.5 million of this important work. and community participation for people with has been spent or committed to date. organisations, and the Agency directly disability. This funding did not provide direct Pricing support for individuals. employing all LACs. In the Hunter trial site, Part of the role of the SDF is to ensure supply some LAC functions are provided through a NSW by examining and funding mechanisms which Government contract with a non-government The NDIA sets the maximum price it will pay Examples of CICD funded projects include: support existing providers to make the transition, organisation (Ability Links). The Ability Links LACs for certain supports purchased on behalf of encourage innovation and change, and drive and perform community linkage functions and largely participants. In 2013–14, the NDIA undertook • training for the volunteers and staff at the shape demand. An important aspect of this is work with those who are not eligible for the NDIS. a joint working group with NDS and economic Hackham West Community Centre in South building the capacity of people with disability and In Tasmania, LAC services are contracted through and accounting specialists to establish a Australia. This project has resulted in children their families to become active, engaged and the Gateway service, operated by Mission methodology for an efficient price for personal with disability being included in their local assertive consumers. Australia and Baptcare and in Barwon and South care supports under the Scheme. The NDIA will community centres programme Australia, the NDIA is responsible for directly provide a range of measures to help providers Projects funded this year include: employing all LACs. adjust to the efficient price and to help build • funding provided to a Victorian programme a competitive market. It is expected that the to purchase suitable musical instruments for • increasing awareness and understanding of The NDIA is currently developing a framework efficient price will be used by the NDIA from a local community neighbourhood house to the NDIS among people with disability and for evaluating the various LAC implementation 1 July 2016. include children with disability in their music- their families (National Disability and Carers models, and identifying the best of these. based playgroup programmes Alliance and National Mental Health Council) Arrangements for people not • a project to develop tools to assist • raising awareness of the NDIS among people requiring formal supports participants to self-manage their plans has from Aboriginal and Torres Strait Islander been completed and will be available to all background, including checks that the Scheme During the NDIS trial it has been agreed that participants across the trial sites. meets their needs (First Peoples’ Disability arrangements for people not requiring formal Network) supports will be funded by the Commonwealth and state governments will remain in place Local Area Coordinators • distributing the NDS Non-Governmental in trial sites for the foreseeable future. The Organisation Readiness Assessment Tool and NDIA has employed LACs directly, or through LACs work to bring together participants, people providing business support and coaching contracting and outsourcing arrangements. The with disability, the disability sector and the NDIA has an active community engagement and broader community. The LAC programme: • workforce recruitment and retention communications agenda to ensure people with programmes—the Carecareers programme disability, their families, carers and other sectors • assists participants to identify services in and ProjectABLE (NDS) understand the role of the NDIS. A Community their local community and to make contact Initiatives Development Fund is also being with those services that can best help them • funding for state and territory governments to implemented as a small grants scheme. to meet the goals they have set with their undertake local capacity building projects. planners

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Major achievements Improving access to aids Communications and Building the evidence base (cont…) and equipment engagement An effective evidence base is crucial to the success of the Scheme, achieving outcomes for An increased range of equipment, higher levels of The NDIA conducts engagement activities that people with disability and ensuring the financial funding and the effective removal of waiting lists raise awareness of the Scheme, mark significant sustainability of the Scheme. have improved access to aids and equipment in milestones and involve the disability sector. Mainstream services trial sites. New and innovative technologies are Since 1 July 2013: The evidence base for the Scheme is being also being funded. Highlights include: built through a combination of experience • Six online webinars attracted 115 000 An important aspect of the NDIS design in the trial sites, the collection of data, and • Self-care and mobility equipment, including views in total. In fact, the NDIA webinars recognises the National Disability independent research. Some examples of work full funding for continence consumables and were the most viewed out of any other Strategy and that people with disability being undertaken to build the evidence base home enteral nutrition equipment, vital to conducted by the webinar provider during report should, wherever possible, be supported include enhancing the reference packages and support people in their daily lives, is the most 2013–14. Each webinar panel included at developing an outcomes framework. through mainstream services and the frequently requested and funded equipment least one person with disability, and Senator community, not just formal supports item. the Hon. Mitch Fifield, Assistant Minister for Reference packages. Reference packages aim to funded by the NDIS. The NDIS is Social Services, participated in the ‘Meet the identify characteristics of participants (such as Performamce directed by a series of principles that • Enhanced equipment options, such as NDIS Governors: webinar on working together age, disability and functional support need) from wheelchairs which allow people to stand and to build the NDIS’ on 16 April 2014. http:// determine whether supports should be which a benchmark amount of support can be others with elevating seats, have provided www.ndis.gov.au/people-disability/videos- funded by the NDIS or by mainstream determined (the reference package). Currently greater access to activities at home, study stories-quotes-and-cameos/videos. systems. Since the NDIA commenced there is not sufficient information available and work. These have a direct benefit for on 1 July 2013, the Agency has been to group participants into cohorts to monitor participants’ safety and independence. • The Agency has held more than 1500 NDIS experience against the reference packages. Data working closely with governments and events, including national media coverage are available on age and health condition, but the broader community to apply these • Newer and complex technologies for verbal, of the official opening of the NDIA National the initial data on ‘severity’ of disability which principles in each of the trial sites. written and electronic communication Office in Geelong on 30 April 2014. Most of was being collected, based on frequency of are commonly requested, including tablet these events were run by trial sites, including support needs, has not been reliable. Urgent work The NDIA has also been working computers and specialist software. information sessions, community meetings is underway to identify other measures that can and formal presentations. with Commonwealth and state and assist in structuring the essential practical linkage • Equipment for people with sensory disabilities, territory government agencies to between assessment and support packages. including braille readers and writers and • More than 22 000 people subscribed to the clarify the roles and responsibilities of external processors for cochlear implants, NDIA’s monthly e-Newsletter and the NDIS mainstream services and the NDIA for has been funded. Training and post-delivery website has received more than 1.2 million In order to improve the reference package interface, the NDIA is also adopting a validated the supports included in participants’ adjustments—essential components of this unique visitors. Since August 2013 the website self-reporting tool that will be completed prior individual plans. Mainstream services more complex equipment—is provided along has on average received between 2000 and to the planning conversation, and will contribute of particular interest to the Agency are with the funding for the devices. 4000 visitors per business day. to research on diagnosis and severity. It is based health, mental health, child protection, on the World Health Organisation Disability Work is well underway on possible future models The Agency is continuing to refine its education, employment services, and Assessment Schedule (WHODAS 2.0) and will of equipment provision and acquisition which engagement and communications products and housing and justice. allow a link between assessment and resource will promote participant choice and control, activities. Engagement through social media allocation at the individual level, which is while leveraging purchasing volumes which via the NDIS website and Facebook page will consistent with the overall funding envelope. will contribute substantially to the financial continue to grow with the implementation of sustainability of the Scheme. regular live chats, posts and weekly updates on Outcomes framework. The Agency is the NDIS. undertaking extensive work to develop a participant outcomes framework. The framework includes measurement across domains (such as choice and control, activities of daily living, social inclusion, employment, education, health and housing) and will allow the Agency to continuously evaluate what drives good outcomes.

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Thomas: starting his own business Major achievements At just 16, Thomas, who was born with (cont…) cerebral palsy, published his first book, Through the eyes of a person with disability. Evaluations, reports and Now 23, Thomas is running his own business, reviews delivering training and presentations to schools, businesses and community organisations and aiming to better educate report Operational review. At the request of the Council of Australian Governments people about how to communicate and work (COAG), the Assistant Minister for Social with people with disability. Services requested that the Board undertake a review of operational ‘People with disabilities are no different,’ Performamce arrangements to determine why Thomas says. ‘We want to contribute to annualised average package costs were society in a positive way too.’ exceeding the average as anticipated by the Productivity Commission. Details can An NDIS-funded tablet computer has helped Tasmanian teenager Zoe convey her Through his NDIS plan, Thomas has been able be found on page 50. needs and emotions to mother Amanda. Photo credit: Chris Crerar/Newspix to secure support which has enabled him to Capability review. In December 2013, operate his business more effectively. the Board commissioned a review of the capabilities of the NDIA. The review ‘I have a support worker with me at was conducted by Mr Jeff Whalan AO, Zoe: can communicate with her family conferences and festivals so I can better Dr Peter Acton and Dr Jeff Harmer AO, communicate with people. I’ve never had and was released in February 2014. The thanks to her iPad access to support like this before and it’s been review considered how the Agency aligns so useful. Now I can choose what supports I processes, systems and the expertise Zoe, from Bridport in Tasmania, has Down syndrome and had struggled to communicate of its people to deliver on objectives. want to engage and which days I want to use with her family and friends. Now, after receiving an iPad as part of her NDIS plan, the simple Building capability is a high priority for them. I love having more choice and control— tablet computer has unlocked the world for the 19-year-old. the Agency in the lead up to full scheme. it’s something that wasn’t possible before.’ The report and the Agency’s response is Amanda, Zoe’s mother and full-time carer, said Zoe regularly sends messages to her using available at www.ndis.gov.au. the device—and she has kept every single one. ‘They bring tears to my eyes because I never KPMG review of the optimal before had such insight into what Zoe was thinking—children with Down syndrome often transition to full scheme. The Board have trouble understanding and verbalising their feelings.’ commissioned KPMG to consider the risks and opportunities associated ‘Zoe’s messages might just convey that she is hungry and wants a sandwich, or they might with transitioning from the trials to full be more significant,’ Amanda said. ‘Her great-grandfather died and we were not sure if Zoe scheme. An initial component of the understood but a few weeks later she sent a message saying she understood and missed report is available at www.ndis.gov.au. him. Without the iPad, we probably never would have known.’ Review of business capabilities. Boston Consulting Group was commissioned by Zoe’s NDIS plan funds weekly community-access activities to develop her social and life the NDIA to consider whether any of the skills, as well as three hours’ respite a week. For Amanda, leaving Zoe with a carer for the Agency’s functions should be outsourced first time was tough, but the iPad provided reassurance to both of them. ‘Zoe can now to create efficiencies. The Agency is text her parents like any other teenager and she knows that if she needs me, I am just a building the findings of this report into its message away.’ planning for transition to full scheme.

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Lessons learned Focus for 2014–15 Key performance indicators

Building a scalable operating model. The development of a scalable, sustainable and Better engagement effective full scheme operating model is now well Programme 1.2 Objective: underway. The Agency has developed a detailed To drive change in the disability sector to support the implementation of the NDIS and ensure that people with disability Throughout the Joint Standing project plan of the work required to achieve this are able to be supported to achieve choice and control outcomes during 2014–15 which includes: Committee on the NDIS’s enquiry, KPI ACTIVITY (as demonstrated through the deliverables) the NDIA was provided with feedback • developing and validating a service delivery on each of the trials. Through this operating model Community • The Agency is building community awareness of people with disability by holding events, process the Agency learned valuable awareness of maintaining an online presence and seeking participant feedback. report people with lessons about the way it engages • clarifying the transition plan to move people disability • In 2013–14, the Agency held 1500 awareness building events, including 850 at the trial sites. with its stakeholders and participants into the NDIS and consequently has a number of • The Agency’s diverse online presence is easy to use and encompasses a website with 1.2 million unique user visits, an NDIS YouTube channel airing short films watched by 1.09 million viewers, processes in train to improve the way it • supporting the Agency’s operational policy a strong social media presence—the NDIA Facebook page has 40 000 ‘likes’ and the NDIS Twitter Performamce framework. account has 1500 followers—and a monthly e-Newsletter with 22 000 subscribers. communicates with them and listens to their views, including: • The Agency seeks participant feedback through its National Quality Action Plan and a Cultural Improving the Agency’s ICT system. To fulfil audit. its promise of creating an insurance-based • Improving the online interface. organisation capable of longitudinal analysis Effectiveness • The NDIA’s LACs are in a strong position to work closely with participants and to forge links with The Agency will undertake a total and actuarial decision-making the NDIS of Local Area their local communities. overhaul of its website and make requires a leading-edge set of information and Coordinator community • This year, LACs supported participants to build their personal capacity by offering planning sessions significant improvements to the communication technology (ICT) capabilities. capacity building to help them understand the NDIS and the participant pathway. The role of technology and the use of technology activities provider portal. solutions to deliver on the strategic goals for the • LACs are working with local councils, community organisations and rural access workers to better NDIS are pivotal in the success of the Scheme connect people with disability and participants to these services. • Undertaking a cultural audit. The over the long term. Increased mix of • The NDIA works to develop a diverse mix of support options and innovative approaches to Agency will undertake an audit to support options providing supports. seek feedback from participants and The ICT system will enable participants to and innovative stakeholders on whether the Agency connect and interact with the Scheme, providers approaches • In recent Agency developments, access to aids and equipment in trial sites has been improved to provision of and waiting lists have been abolished, new and innovative technologies are being funded and is living up to its values. and the NDIA seamlessly. The technology vision support equipment that enables participation in recreation and vehicle modifications are being funded for provides for online collaboration spaces where the first time. participants are able to come together with NDIA • An increased number of participants have benefitted from the inclusion in their plan of funding staff and providers to choose their supports and for home modifications including assistance with design and construction which has resulted in a work towards achieving their goals. Participant steady uptake of a wide range of home modifications. choice and control will be further enabled through access to a range of digital services and Increased • Work is progressing on a market action plan to identify and prioritise areas of work to grow the participation of market and help it make the transition to a competitive basis has been developed and is in the channels for communication and engagement. providers in the early stages of implementation. Planning is now underway to design and develop disability support these system capabilities. market • Funding under the Sector Development Strategy has been provided to NDS for a range of activities to support provider understanding of capacity to engage with and transition to the NDIS. Developing an efficient market. As noted An evidence base • The NDIA has appointed a Scheme Actuary and has been releasing quarterly and annual in Major achievements, Sector Development is developed sustainability reports. Fund, a market action plan will be implemented to inform an throughout 2014–15. insurance • The Agency is building a strong evidence base to inform its work. This evidence base will draw approach to on expert advice and be developed over time. It will collect data on what supports lead to good disability support outcomes and will assist in establishing a website and other mechanisms to allow participants to Implementing workforce improvements. share information on what has helped them to achieve good outcomes. As noted in Major achievements, Sector Development Fund, a workforce strategy will be • Plans for a new, purpose built ICT system will take the Agency one step closer to a fully implemented insurance approach to providing supports. developed during 2014–15.

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Cost drivers analysis consolidates Embedding an insurance culture

As part of the Operational Review, the Board The Agency has begun embedding a strong undertook an analysis of the cost drivers in the insurance culture. This has been achieved Scheme. through extensive training of staff by the Scheme Actuary, and by demonstrated Monitoring significant cost drivers is fundamental learning and continuous improvement. to the sustainability of the Scheme; accordingly, they are monitored by the Scheme Actuary and As a result of the Operational Review, the reported in the quarterly data report which is Agency introduced a governance framework provided to the COAG Disability Reform Council. under which improvements will continuously report be undertaken, consistent with a prudential Programme 1.3 – Agency Costs insurance governance cycle. The framework Scheme Actuary reporting includes engagement with the Scheme Actuary, subject experts and key stakeholders when an Major achievements The Scheme Actuary plays a crucial role in operational change is to be made by the Agency. Performamce monitoring the sustainability of the Scheme. Monitoring by the Scheme Long-term costs—trends in The Actuary produces the following regular Actuary average annualised package cost reports: Quarterly reports to the Board on the The long-term and short-term costs of the The average annualised package cost* at the end sustainability of the Scheme are used by the Scheme are closely monitored by the Scheme of June 2014 is $38 200 including the Stockton1 Scheme Actuary and the Board to monitor the Actuary and are reported to the Board on a large residence, and $34 600 excluding Stockton progress of critical components of Scheme monthly, quarterly and annual basis. large residence. performance across trial sites. As a result, each quarter, the Board releases a short report on the Short-term costs In general, over the first 12 months of operation, sustainability of the Scheme, made available on average annualised committed supports have the NDIS website. been trending downwards across all trial sites. At the end of the financial year, $285.4 million This can be partly explained by operational was committed to participants with approved An annual financial sustainability report to the reforms introduced in January 2014 which aimed plans. Of this, $130.9 million (46 per cent) was Board which has been peer reviewed by the to provide more concrete guidelines around provided in 2013–14. The funding envelope Australian Government Scheme Actuary, a reasonable and necessary supports, and partly based on the bilateral agreements for 2013–14 summary of which is contained in this report. by the phasing schedule. There will continue to was $148.8 million, including both cash and in- be variability in the quarterly average package kind. Overall, for participants who have entered Management information dashboards size because different groups of participants are the Scheme in the first 12 months, support have recently been introduced to (a) assist being phased in to the Scheme each quarter. provided for 2013–14 was around 88 per cent of management to monitor operational the funding envelope. performance on a weekly basis and to provide more regular updates on Scheme performance, In 2014–15, the funding envelope is projected and (b) produce a monthly summary of service to reach $384.4 million. Committed support provider activity. Work on a dashboard which for 2014–15 was at 40 per cent of the funding summarises and benchmarks planners is also envelope as at 30 June 2014. underway.

*Note: Average annualised package cost is not an appropriate measure of Scheme performance when considered in isolation from other metrics. It is important to consider the number of Scheme participants, the distribution of packages committed to these participants, and actual payments for supports provided. All of these factors contribute to the overall cost. Further, the focus should be on the supports provided to participants over their lifetime, rather than annual package amounts.

1 Stockton is a large residence in the Hunter trial site which brings together a high concentration of high-cost participants to one geographical area, and hence distorts the analysis when included.

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Major achievements (cont…) • describes the annual review process by which fraud prevention, detection, investigation, the NDIA will assess the effectiveness of its reporting and data collection procedures and risk management framework in identifying, processes to minimise the effects of fraud. It Risk management measuring, evaluating, monitoring, reporting, is important to note the Agency has in place and controlling or mitigating, material risks. mechanisms for both members of the public and A robust risk management framework is essential staff to report suspected fraudulent activity by for the Agency’s operations and the overall The Board and NDIA focus extensively on NDIS participants, providers or staff. Suspected sustainability of the Scheme. risk identification, monitoring and mitigation fraudulent activity can be report by email or report interventions, in particular for strategic risks that, telephone to the Agency’s Fraud Team. All The framework and approach adopted by if realised, could materially impact upon the allegations are reviewed, and if an allegation the Board is set out in the National Disability success of the NDIA and the Agency. Ongoing can be substantiated, fully investigated. The Insurance Scheme—Risk Management Rules work on operationalising risk management Agency will continue to build on the foundations 2013 (Risk Management Rules). Consistent with is being undertaken to ensure the Agency established in 2013–14, and to monitor and Performamce these rules, and reflecting the insurance basis of continues to respond to emerging issues and develop its fraud control policies as the Scheme the Scheme, the Board adopted the Prudential trends. For example: and Agency evolve. Risk Standard (CPS 220) promulgated by the Australian Prudential Regulation Authority as • The NDIA’s Risk Management Framework The NDIA regards effective risk management as the overarching policy for risk management incorporates a governance structure by the totality of the collective efforts of all staff. activities in the Agency. CPS 220 aligns closely which risk management is a key business with the provisions of the Commonwealth Risk consideration for the Board and the Agency Management Policy issued as part of the new while holding managers accountable for Commonwealth accountability framework under ensuring risk is suitably managed. the PGPA Act. • The NDIA has in place an operationally As required by the Risk Management Rules, the independent risk management function which Board finalised a Risk Management Strategy is responsible for ongoing initiatives being in early 2014. The Risk Management Strategy undertaken to operationalise the Agency’s as an integral part of the Board’s broader Risk Risk Management Strategy. Examples of Management Framework. The Strategy: such initiatives include the development of a ‘Risk Champions’ network, the establishment • outlines the risk governance relationship and ongoing maintenance of strategic and between the Board, committees of the Board operational registers and the incorporation and the senior management of the Agency of risk assessment and risk planning as a key component of business planning. • describes the processes for the NDIA to identify and assess risks, establish mitigation Additionally, the Board and NDIA have learnt and control mechanisms for individual risks from a number of internally commissioned and monitoring and reporting issues in relation reviews and continually scan the risk to risk management environment to ensure risk management better practice ideas are identified • describes how the NDIA will raise staff risk and lessons learnt are captured. awareness and develop an appropriate risk culture During 2013–14, the Agency also established a framework and policies for controlling fraud • sets out specific risk management roles and within the Agency and Scheme that comply with responsibilities and establishing a process to the Commonwealth Fraud Control Guidelines. The review the effectiveness of the framework, and NDIA has commenced implementing appropriate

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Lessons learned Focus for 2014–15 Key performance indicators

Cost drivers. During 2013–14, the Board undertook a review of the key cost drivers in the The Agency and Scheme Actuary will work Programme 1.3 Objective: Scheme. Five were identified including: towards ways of monitoring short and To ensure efficient and effective use of Agency operating resources to implement the Outcomes of the Agency. • access: the number of people meeting long-term costs, and aligning operations the access criteria to be participants in the with the insurance principles, including: KPI ACTIVITY (as demonstrated through the deliverables) Scheme, and how many are entitled to a plan with supports funded or provided by the > Developing an outcomes framework Effectivemanagementestimationof short-and • Toliabilities,guide thethedevelopmentNDIS has establishedof its insuranceits ownmodelinternalandactuarialcontinuallyteam.assess the Scheme’s Scheme which measures individual participant term and long-term costs outcomes. Outcomes will be considered • The Scheme Actuary is continually assessing the financial sustainability of the report • scope: the scope of supports that are funded across domains such as independence, Scheme and provides NDIA management and the Board with information on Scheme performance from which decisions can be made to ensure the Scheme remains or provided by the Scheme, as opposed to employment, and social inclusion. financially sustainable. supports that are not within the scope of the Scheme, for example, because they are more > Designing a lifetime cost estimator • The Actuary is responsible for producing the Annual financial sustainability report, quarterly reports, developing a detailed monitoring framework, and ensuring the Performamce appropriately funded or provided through tool. Participants who enter the NDIS Agency’s staff understand the insurance principles of the Scheme. other systems of service delivery like the can be participants for life, so the health system actuarial team is developing a lifetime • Four quarterly reports and one annual sustainability report were released for the period 2013–14. cost estimator to assist planners with • volume: for supports that are within the scope developing innovative ways of providing The NDIS is financially • The Scheme Actuary has found that considering the number of participants entering of the Scheme, the volume or level of those sustainable and governed the Scheme and the distribution of support packages committed to these participants, funded supports that can increase supports that the Scheme funds or provides using insurance principles the NDIA is on track to be within its total projected cost in 2019–20, which is the first a participant’s independence and year of full scheme. Full details are contained in the Actuary’s annual sustainability for participant reduce financial expenditure over the report. participant’s lifetime. • delivery: the manner in which supports are • Throughout 2013–14 the actuarial team held seminars and distributed information to funded or provided, and in particular how ensure all NDIA employees and service providers understood the insurance principles

Arrangements for people who do that underlie the Scheme. This is to embed an insurance culture within the Scheme as effectively, efficiently and economically this is not need funded supports. Ensuring it develops to full scale. done that those people not requiring • The adoption of the insurance principle is allowing the Scheme to place greater funded services are well supported emphasis on making up-front investments that increase clients’ independence and • price: the price paid by the NDIA or participants to purchase the supports that are by comprehensive community and reduce their call on the Scheme into the future. funded or provided by the Scheme. mainstream services is imperative for • In the Agency’s first year the insights and data that have been gained are allowing Scheme sustainability. This will ensure richer and more accurate calculations of the future costs of the Scheme. The most significant cost driver in the Scheme that people receive the services and • Planning for the NDIA’s ICT platform includes recognition that it must support the during its first year of operation was the volume supports they require in the most collection of longitudinal data to assist actuarial calculations. of supports. Operational changes were made to appropriate way, and minimise the focus planners’ attention in the first instance on number of people who may otherwise informal supports and community inclusions, in require NDIS support. This is complex preference to formal supports. work expected to be completed by the end of 2015–16. This work will be ICT system. To fulfil its promise of creating undertaken by governments. an insurance-based organisation capable of longitudinal analysis and actuarial decision- > Mental health. During 2014–15, the making, and a market that brings participants Agency will undertake further work and providers together, the NDIS requires a to develop strategies for supporting purpose built ICT system. The existing system individuals with a mental illness eligible cannot provide this function. Planning is now for the Scheme. This work will be underway to create this. supported by the IAC.

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SECTION 3: This section of the Facts and figures 2013-14 Annual Report covers the essentials of the NDIA’s governance, organisation, people and workplaces, and reporting obligations

68 | national disability insurance agency | 2014 annual report John, with his carer 69

Part A: Governance framework Responsibility for the NDIS is shared amongst all Australian governments and they are each involved in decisions relating to the NDIS’s policy, funding and governance. In particular: Responsible Minister Joint Select Committee • The COAG Disability Reform Council, made The Scheme is administered by the NDIA and is Senator the Hon. Mitch Fifield, Assistant Minister and Joint Standing up of Commonwealth, state and territory governed by a Board. The NDIA holds all funds for Social Services, has day-to-day ministerial treasurers and ministers for disability, is the contributed by the Commonwealth, states and responsibility for the NDIA including the exercise Committee decision-making body on NDIS policy issues. territories in a single pool, manages Scheme of specific powers under the NDIS Act; for funds, administers access to the Scheme example, to prescribe fees and appoint Board The Joint Standing Committee, composed of six • The Commonwealth Minister is responsible and approves the payment of individualised members. members and six senators, was established on for administering the NDIS Act, and exercises support packages. The Chief Executive Officer is statutory powers with the agreement of states responsible for the day-to-day administering of 2 December 2013 when the Senate agreed to The Hon. Kevin Andrews MP has been the a resolution from the House of Representatives, and territories, including power to make the access and approving plans, while the Board is portfolio minister responsible for the NDIS since passed on 21 November 2013. NDIS Rules and direct the NDIA. responsible for ensuring the Agency performs its 18 September 2013. functions properly. The Board is advised by the NDIS IAC. The Committee is tasked with reviewing: The Hon. Jenny Macklin MP was Minister for figures Disability Reform from 14 December 2011 to • the implementation of the NDIS and 18 September 2013. FIGURE 3: NDIS GOVERNANCE FRAMEWORK • the administration and expenditure of the Facts NDIS COMMONWEALTH COAG DISABILITY • any matter in relation to the NDIS referred to MINISTER REFORM COUNCIL COAG Disability Reform Council theof theCommitteeParliament.by a resolution of either House

JOINT STANDING The COAG Disability Reform Council oversees The Committee presented its first annual BOARD COMMITTEE the trial and implementation of the NDIS and report—Progress report on the implementation will make recommendations to COAG on the and administration of the National Disability transition to NDIS full scheme. Insurance Scheme—on 29 July 2014. The report is available on the Committee’s website at CHIEF EXECUTIVE OFFICER INDEPENDENT www.aph.gov.au. ADVISORY COUNCIL

Note: Until the 2013 election, the NDIA was overseen EXECUTIVE MANAGEMENT GROUP by the Joint Select Committee on the NDIS, which was created in June 2013 by the 43rd Commonwealth Parliament and existed until the dissolution of the House of Representatives. INTERNAL COMMITTEES

NATIONAL DISABILITY INSURANCE AGENCY

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Part B: NDIA Board

The NDIA Board is Board committees responsible for the proper, efficient and effective The Board is advised by two committees, the Audit and Risk Committee and the Sustainability Committee. performance of the Agency’s functions under Audit and Risk Committee the Acts, risk management The Board established the Audit and Risk Committee (ARC) under the NDIS Rules in compliance with section 32 of the CAC Act. and the organisation’s As a Committee of the Board, the ARC helps the Board fulfil strategic direction. its responsibilities under the NDIS Act. The Committee’s objective is to provide independent assurance and advice to the Board on the Agency’s risk, control and compliance Board members have framework, and its financial statement responsibilities. responsibilities under The Committee is chaired by Mr John Hill PSM, and its figures the CAC Act (and from membership includes Mr John Walsh AM and 1 July 2014 under the Mr Martin Laverty. The ARC also has two external and members, Ms Helen Williams AO and Ms Marian Micalizzi. PGPA Act), relating The ANAO has attended each ARC meeting to date, along Facts primarily to the NDIA’s with internal auditors. performance and Sustainability Committee strategies as well as reporting and conduct. The Board’s Sustainability Committee was established to assist the Board in fulfilling its functions under The Inaugural Board, section 118(1)(b) of the NDIS Act, in particular, consisting of a Chair and assessing, monitoring, reporting on and managing the financial sustainability of the NDIS. The objective of the eight other members, was Sustainability Committee is to provide advice to the Board, appointed on 1 July 2013 using analysis from the Scheme Actuary reports, assessing for a three year term. whether Scheme objectives are being met, and, through the Board, to the COAG Disability Reform Council, on potential changes to the legislation or other regulation. The Board is required to The Sustainability Committee held its first meeting on hold a minimum of four 11 February 2014. For its first year of operation, the meetings per year and met Committee comprises the entire Board. 14 times during 2013–14.

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NDIA Board Members

Chair Dr Rhonda Galbally AO, B Ec, DipEd Monash University, M A Prelim Mr Bruce Bonyhady AM, B AppEc (Hons) University of New England, La Trobe University, Dip Remedial Hawthorn Institute (University of M Ec Australian National University, LLD (Honoris Causa), University of Melbourne), D SocSc (Honoris Causa) RMIT University, D HSc (Honoris Melbourne, Litt D (Honoris Causa) University of Western Sydney Causa) La Trobe University

Mr Bruce Bonyhady AM is the Inaugural Chair of the NDIA Board. He has Dr Rhonda Galbally is a member of the NDIS Board and Principal been a driving force behind the NDIS for many years. Member of the IAC. She has been Chair of the National People with Disabilities and Carer Council, a member of the Independent Panel Bruce was a member of the Disability Investment Group in 2008 and advising the Productivity Commission, and a member of the former 2009, Convenor of the Independent Panel appointed to advise the NDIS Advisory Group. Productivity Commission during its inquiry into long-term care and support for Australians with disability in 2010 and 2011, and Deputy Rhonda has vast experience in health development, disability, and Chair of the NDIS Advisory Group to COAG from 2011 to 2013. social and health policy, and has made a significant contribution to the field in Australia and internationally. She has been the CEO of the As the father of two sons with disability, he has worked for over 25 Sidney Myer Fund and the Myer Foundation, and is currently the Chair of years to improve the lives of people with disabilities. the International Evaluation Committee for the Thai Health Promotion Foundation. Rhonda has first-hand experience of living with a disability, Bruce is also Chairman of Acadian Asset Management Australia Limited having contracted polio as an infant. and a Director of Dexus Wholesale Property Limited. figures Rhonda was made an Officer of the Order of Australia in 1991 and and Bruce was appointed as a Member of the Order of Australia in 2010 for awarded the Centenary Medal in 2001 for services to the community. services to people with disabilities, their families and carers and to the In 2012, Rhonda was awarded the Prime Minister’s Outstanding Facts community. He was awarded an honorary doctorate by the University Achievement Award in the National Disability Awards. of Melbourne in March 2014 for his work to create the NDIS. Declared personal interests Declared personal interests Chair, International Evaluation Board for the Thai Health Promotion Foundation Chairman, Acadian Asset Management (Australia) Ltd Principal Member of Advisory Council Director, Dexus Wholesale Property Ltd Chairman, Advisory Panel, Solve@RCH, Centre for Developmental Medicine Research at the Royal Children’s Hospital, Melbourne Ms Geraldine Harwood, B A, Dip Ed, Grad Dip ASOS (Hons) UTAS, GAICD Associate Investigator, Centre for Research Excellence on Cerebral Palsy (NHMRC (App 1057997)) Geraldine was CEO of Optia Incorporated for 20 years, retiring at the Family members are potentially eligible for the Scheme end of 2012. She has broad expertise across the disability sector in Tasmania including as Chair of NDS Tasmania and as a Director on the NDS Board and has been active on numerous Tasmanian and NDS committees. Geraldine is the former Chair of the NDS National Workforce Committee and Branch Commissioner for Special Needs for Scouts Australia. Geraldine is a Graduate of the Australian Institute of Company Directors.

Declared personal interests Director, Scouts Australia Institute of Training Manager-Consumer Engagement, Anglicare Tasmania Life member, Optia

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NDIA Board Members

Mr Martin Laverty, LLM NTU Mr Glenn Keys, B E (Mech) UNSW, ADJ PROF University of Canberra Martin is the National CEO of the Royal Flying Doctor Service of Australia. Prior to this, he was Glenn is the founder, CEO and Director of Aspen CEO of Catholic Health Australia for six years. figures Mr John Hill PSM, B Ec University of Adelaide Medical, and is the Founder and Director for Ms Fiona Payne B AppSc & M Sc (Physiotherapy) Martin currently serves as a member of the NSW Project Independence, an initiative offering home Curtin University, ASDA, GAICD and Public Service Commission Board and as Chair of John has gained experience and expertise from ownership to people with disabilities. the Social Determinants of Health Alliance. He numerous professional and board appointments Fiona has more than 20 years’ experience on Facts is a former Chair of the NSW Heart Foundation in South Australia. He is a former Deputy Under Glenn is the father of a child with an intellectual boards and committees in the community and a member of the Heart Foundation National Treasurer with the South Australian Department disability and works to improve the lives of sector. She has worked for many years with Board, and served until August 2014 on the of Treasury and Finance. He is currently Honorary people with disabilities through a range of children with disabilities and their families, Federal Government’s Aged Care Sector Advisory Treasurer on the Board of Meals on Wheels disability organisations such as Special Olympics. both as a physiotherapist and as a manager of Committee and the National Health Performance (SA) Inc. and is a member of several Audit health and disability services. She currently holds Authority’s Private Hospital Committee. Committees, including the Chair of the NDIA Declared personal interests several board appointments, works as a human Audit and Risk Committee. CEO, Aspen Medical (Australia) services consultant, is a Foundation Co-Lead of Martin has experience working with disability Director, Aspen Medical and Aspen Health companies the WA Disability Health Network and is also the and subsidiary companies (various international) service providers including his former roles He was awarded the Public Service Medal in 2001 parent of a child with a vision impairment. Chairman, AMV Australia Pty Ltd as Board Chair of Sunshine Homes for seven for sustained outstanding service in public sector Member of Expert Panel for the ACT NDIS Trial Declared personal interests years and Challenge Southern Highlands for finance. Committee member for the Special Olympics ACT Director, Perth South Coastal Medicare Local eight years. Martin is also a former CEO and Founder of Project Independence (a housing project for Director, Community First International Board member of the NSW Muscular Dystrophy Declared personal interests people with intellectual disability Co-Lead of the Disability Health Network, Department Association. Martin is member of the NDIA’s ARC. Board Member, Essential Services Commission Family members are potentially eligible for the Scheme of Health Member Audit Committee, University of Adelaide Project Consultant, Fiona Payne Pty Ltd Member Audit Committee, Department of Treasury and Declared personal interests Consultant, ‘Scoping Complex Needs’, NDS WA Finance (SA) CEO, Catholic Health Australia Member, NDIS Perth Hills Local Advisory Group Member Audit Committee, Department of Board Director, NSW Public Service Commission Consultant, Review of the ‘Partners in Change’ program Manufacturing, Innovation, Trade, Resources and Board Director and Chair, Heart Foundation – NSW 2012-2014, Perth Home Care Services Energy (SA) Division Member, WA NDIS ‘MyWay’ Reference Group John Hill Rounds Service, filing service for law firms Board Director, Heart Foundation – National Company Member, Consumer Advisory Committee, Association Board Member, Meals on Wheels (SA) Member, Australian Government Aged Care Sector for the Blind Western Australia Family member is potentially eligible for the Scheme Committee Family member is potentially eligible for the Scheme Member, National Health Performance Authority Advisory Committee for Private Hospitals Life Member, Challenge Southern Highlands- Life Member Life Member, Lorna Hodgkinson Sunshine Home

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NDIA Board Members

TABLE 2: BOARD MEMBERS’, POSITION, TERM AND MEETINGS ATTENDED Mr John Walsh AM, B Sc University of Sydney, FIAA John is Deputy-Chair of the National Health Performance Authority Board Member Position Date of Term-expiry/ Meetings Eligible to and a retired Partner of PricewaterhouseCoopers, where he worked for appointment retired attended attend over 20 years in the areas of social policy and funding across accident Bruce Bonyhady AM Chair 1 July 2013 30 June 2016 14 14 compensation, health and disability. His passion to improve the lives of people with disabilities stems from his own experiences with Rhonda Galbally AO Member 1 July 2013 30 June 2016 13 14 quadriplegia suffered after an accident during a rugby league game in his early-twenties. He is currently Chair of the Board’s Sustainability Geraldine Harwood Member 1 July 2013 30 June 2016 13 14 Committee and a member of the ARC. John Hill PSM Member 1 July 2013 30 June 2016 14 14 In 2011 John was appointed a Member of the Order of Australia for his work in disability-health policy and also received the Prime Minister’s Glenn Keys Member 1 July 2013 30 June 2016 11 14 Award for outstanding service to the disability sector. In 2001, he was named Actuary of the Year by the Institute of Actuaries of Australia. Martin Laverty Member 1 July 2013 30 June 2016 12 14

Fiona Payne Member 1 July 2013 30 June 2016 14 14 Declared personal interests Deputy Chair, National Health Performance Authority John Walsh AM Member 1 July 2013 30 June 2016 13 14 Retired Partner, PricewaterhouseCoopers figures Actuary, Magoo Actuarial Consulting Pty Ltd Sir Leo Hielscher AC Member 1 July 2013 31 December 5 6 and Scheme Actuary, NSW Lifetime Care and Support Authority 2013 Advisor, Reform of the CTP Scheme, NSW Motor Accidents Authority Advisor, motor injuries support, SA Department of Finance and Treasury Facts Chair, NSW Family and Community Services Analysis and Research (FACSAR) Independent Advisory Committee Person with a disability and potentially eligible for the Scheme Board indemnities and insurance Sir Leo Hielscher AC (retired), B Comm, AAUQ, University of Queensland The NDIS has insurance cover with the Australian Sir Leo has over 50 years’ experience in government, banking and Government insurer, ComCover, for its Board finance, domestic and global financial markets, superannuation, and as members. This cover provides an indemnity for an independent company director. He had a distinguished career in the individual Board members against certain legal Queensland public service, particularly in the Treasury Department and liabilities incurred in the course of their duties. the Treasury Corporation. The purpose of this insurance is to protect Board members against certain liabilities associated with carrying out their roles. Subject to the terms of the policy, in the event of a claim against an individual Board member, ComCover will meet the approved legal expenses of the Board member.

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Part C: The Independent Advisory Council The IAC, may be comprised of up to 13 members and had 12 in 2013–14. Council members have been appointed on the basis of their skills, experience and knowledge of disability and to include a diversity of people with experience of disability, specifically:

• a majority of members are people with a • at least one of the members is a person who disability (currently six of 12) has skills experience or knowledge in the supply of equipment, or the provision of services, to • at least two of the members are carers of people with disability (currently four). people with disability (currently two) The current membership also comes from wide- • at least one of the members is a person who ranging locations around Australia and represents has the skills, experience or knowledge in each of the states and territories. relation to disability in rural or remote areas (currently one) Each member of the Inaugural IAC has been appointed for a three-year term. figures TABLE 3: COUNCIL MEMBERS’ EXPERIENCE OF DISABILITY and Facts Board Member Position Experience of disability Date appointed

Dr Rhonda Galbally AO Principal Member Person with disability 1 July 2013 Dr Ken Baker Member Disability services 1 July 2013 professional Mr Dean Barton-Smith Member Person with disability 1 July 2013 AM Ms Jennifer Cullen Member Disability services 1 July 2013 professional, regional/ remote focus Mr Kurt Fearnley OAM Member Person with disability 1 July 2013 Ms Lois Gatley Member Carer 1 July 2013 Ms Sylvana Mahmic Member Carer, CALD background 1 July 2013 Ms Janet Meagher AM Member Person with disability 1 July 2013 Ms Joan McKenna-Kerr Member Disability services 1 July 2013 professional Dr Gerry Naughtin Member Disability services 1 July 2013 professional Mr Michael Taggart Member Person with disability 1 July 2013 Mr Dale Reardon Member Person with disability 1 July 2013 Vacancy - - -

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Part D: The NDIA organisation

NDIA senior management

CHIEF EXECUTIVE OFFICER

CHIEF FINANCIAL GOVERNANCE SCHEME SCHEME DESIGN OPERATIONS OFFICER GENERAL MANAGER ACTUARY GENERAL MANAGER GENERAL MANAGER figures and Facts

CONTRACTS SUPPORTS & FULL SCHEME DESIGN CHIEF INFORMATION MANAGEMENT OFFICE SERVICES & TRANSITION OFFICER BRANCH MANAGER BRANCH MANAGER BRANCH MANAGER

COMMUNICATIONS & LEGAL & OPERATIONS ACT HUNTER TASMANIA & NT BARWON SA WA CHIEF RISK PEOPLE & CULTURE ENGAGEMENT GOVERNANCE BRANCH TRIAL SITE TRIAL SITE TRIAL SITE TRIAL SITE TRIAL SITE TRIAL SITE OFFICER BRANCH MANAGER BRANCH MANAGER BRANCH MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER

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NDIA management committees

The NDIA Internal governance framework includes the Executive Management Group (EMG) and four internal committees which report through the EMG. There is also a Change Management Committee, which provides authority for operational changes.

The four main committees and their roles are:

• the People and Culture Committee, which provides advice and assurance on all people matters and to create the people capability to deliver against the Agency’s 2013-16 Strategic Plan figures • the Corporate Committee, which provides advice and assurance on future technology, and property and procurement. The Committee will also provide oversight on financial strategy Facts and the Agency model

• the Assurance, Audit and Risk Committee, which assists in developing an internal risk- management culture and enhancing the understanding of the monitoring, reporting and management of risks at the Agency

• the Customer and Performance Committee, which oversees the translation of the NDIA’s strategic priorities into operational priorities for the Agency’s people to deliver a quality service to its customers. The Committee also monitors performance across all key performance indicators.

The framework allows the committees to provide advice and assurance to the EMG and, if needed, ensures that change is endorsed and monitored through the Change Management Committee.

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NDIA executive

Chief Executive Officer Deputy Chief Executive Chief Financial Officer and General Manager, Operations General Manager, Scheme Scheme Actuary Mr David Bowen Officer and General Manager, General Manager, Corporate Ms Liz Cairns Design Ms Sarah Johnson Governance Mr Stephen Payne Ms Anne Skordis David is the inaugural CEO of Ms Louise Glanville Liz was appointed General Sarah Johnson was appointed the NDIA. He was appointed Stephen was appointed Chief Manager, Operations in 2014. As the General Manager, as the Scheme Actuary of figures by the Minister as the first CEO Louise joined the NDIA on Financial Officer (CFO) and In this role, Liz is responsible Scheme Design, Anne has the NDIS for a period of three under section 160(6) of the 27 February 2014 as the General Manager, Corporate, for all of the Agency’s responsibility for market years in November 2013. In and NDIS Act on 10 May 2013 for Deputy CEO and General at the Agency in March 2014. operational functions including design, support and services, this role, Sarah is responsible Facts a term of two years. As CEO, Manager, Governance Prior to this, Stephen worked its trial sites. Prior to this, and full scheme design and for assessing and reporting David is responsible for the Division. In this role, Louise as CFO at a number of state Liz was the Manager of the transition to the NDIS. Prior on the financial sustainability day-to-day administration of is responsible for the NDIA’s government bodies, and has NDIA’s Barwon trial site in to joining the NDIA Anne held of the Scheme so that the Agency. Governance, Legal Services, worked at senior executive Victoria. Liz has also worked several roles in disability and management and the Board Media, Communications level across all tiers of with PricewaterhouseCoopers Home and Community Care can make informed decisions David has been actively and Engagement, Risk government. Sydney in its Health and policy and service delivery, about the Scheme’s continuing involved in developing the Management, Ministerial and Disability Advisory Team, and and in intergovernmental sustainability and direction. disability reform programme, Parliamentary, the Project He has major project delivery for New Zealand’s Accident negotiations. Her most recent Prior to this appointment, both as a member of the Management Office and experience including in Compensation Corporation roles were as the Executive she was a Director at Independent Panel advising People and Culture sections. construction, finance systems, where she established the Director, NDIS Design and PricewaterhouseCoopers. the Productivity Commission in integrated case management National Serious Injury Service Transition and Government its inquiry into the feasibility of Louise brings a vast range of systems and major reform in 2007. Relations for the Department Sarah is a Fellow of the a national disability insurance public sector experience to the programmes for government of Family and Community Institute of Actuaries of scheme, and as initial chair NDIA including three years at agencies and shared services Liz has worked in disability, Services, New South Wales. Australia and has a Bachelor of and ongoing member of the the Commonwealth Attorney- ventures. health and rehabilitation for Commerce (Actuarial Studies National Injury Insurance General’s Department prior to 24 years. She has worked in Originally from Victoria, and Financial Economics) from Scheme Advisory Group. accepting this role. She has publicly-funded health and Anne studied social work the University of New South also worked at the Victorian disability support services, and her early career was in Wales. Department of Justice, and in and in catastrophic injury income support programmes, local government, academia, management. Her disability concessions and customer the private sector and experience is extensive and policy for gas and electricity ministerial offices. includes physical, intellectual, providers in Victoria. Anne has sensory and cognitive also been a board member disability. for 10 years for a residential and community aged care provider.

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NDIA trial site managers

There were six site managers at the NDIA in 2013–14, each responsible for a particular geographical region. During this first year of the trial, four of the Agency’s site managers were each dedicated to and responsible for one of the Agency’s first four operational trial sites—Barwon, Hunter, South Australia and Tasmania. Leading up to their commencement date, site managers for Western Australia and the Australian Capital Territory were responsible for establishing new sites which became operational from 1 July 2014—Perth Hills and the Australian Capital Territory—and the manager for South Australia and the Northern Territory gained responsibility for an additional site at Barkly, Northern Territory.

VICTORIA TASMANIA Ms Stephanie Gunn Ms Sue Ham

Stephanie commenced as the NDIA Barwon Trial Site Manager in February 2014, having joined the Sue returned to her home state of Tasmania to take up the position of Trial Site Manager in October NDIS Taskforce in Canberra in May 2012. She was involved in Scheme design and implementation 2012. Sue joined the NDIA ahead of the 1 July 2013 commencement of the Scheme to manage the arrangements in each of the original trial sites. operational requirements for establishing the Tasmanian trial.

Stephanie brings extensive change management experience from working with the Commonwealth, Sue brings significant Commonwealth and state public sector and non-government sector experience state and territory governments and communities to achieve strategic reform in areas as diverse as to the NDIA including six years in management roles in DSS, (FaHCSIA), and 11 years as CEO of Colony blood product management, regional development, local government and corporate governance and 47 Inc. in Tasmania. Sue started her career as a social worker in the Tasmanian Mental Health Services figures planning. Commission before first joining the APS as a social worker for the then FaHCSIA. and AUSTRALIA NEW SOUTH WALES WESTERN Ms Marita Walker Facts Ms Kim Birch

Kim joined the NDIA in February 2014 as Trial Site Manager for the Hunter. Kim comes to the Agency Marita is the Trial Site Manager for the Perth Hills site which will support up to 4 300 people over the from the Queensland Government’s Motor Accident Insurance Commission where she held the role two year trial. She commenced with the NDIA in March 2014 after working as CEO of Perth Home Care of General Manager, Motor Accident Insurance Regulation, responsible for regulation of Queensland’s Services where she spent a number of years involved in the NDIS advocacy and design. Compulsory Third Party (CTP) Insurance Scheme. As former CEO of Perth Home Care Services, Marita oversaw programmes to develop individualised For the past 18 years Kim has been working in personal injury CTP insurance in private sector insurer services for over 300 people with disability and expanded the range of support options over the roles. Kim has extensive experience in many facets of personal injury, both strategic and operational. previous decade. Her previous experience includes nine years with the Disability Services Commission as the Director, East Metropolitan Region. SOUTH AUSTRALIA AND NORTHERN TERRITORY Ms Meryl Zweck AUSTRALIAN CAPITAL TERRITORY Ms Jillian Paull Meryl was appointed to the role of Trial Site Manager in South Australia in November 2012, and oversaw Northern Territory in November 2014. Meryl has extensive senior management and work Jillian joined the NDIA in January 2014 as the Australian Capital Territory Trial Site Manager. Her experience in the disability and health fields. In recent years Meryl’s roles have included senior previous role was in the Australian Capital Territory Government’s Community Services Directorate positions in the Clinical Training Reform Work Group within Health Workforce Australia and in the where she was Senior Director. Prior to this Jillian headed up Mission Australia in South Australia until Adelaide Regional Operations Centre, DSS, formerly known as the Department of Families, Housing, 2012, provided business consultancy to Life Without Barriers and worked in a variety of roles within the Community Services and Indigenous Affairs (FaHCSIA). South Australian Government.

Meryl has held senior management roles across a range of DSS funded programmes and has also been Her passion for working alongside people experiencing disadvantage in her community has been employed with CRS Australia and Centrelink. Meryl’s experience in policy development and programme informed by her personal experiences and she is passionate about social justice and inclusion. implementation in both mainstream and Indigenous Affairs settings, as well as in cross-government collaboration has contributed to her capacity to develop a strong trial site for the NDIS in South Australia and the Northern Territory.

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Part E: NDIA people At 30 June 2014, the Agency had 516 employees across the seven Aboriginal and Torres Strait trial sites and National Office. Agency staff are employed under the Islander employees Public Service Act 1999 (PS Act). The Australian Government has set a target to increase Aboriginal and Torres Strait Islander employment levels to a minimum of 2.7 per cent • The NDIA is participating in the 2014 ‘Stepping across the public sector by 2015. As at Workplace diversity into’ internship programme, which provides 30 June 2014, 1.7 per cent of NDIA’s employees six weeks’ work experience in the Agency’s identified as Aboriginal or Torres Strait Islander. The NDIA values the contribution of employees National Office for university students with with diverse backgrounds and experiences to the disability who are in their final year of an The Agency is working with Reconciliation Agency’s organisational culture. The Agency’s undergraduate degree. Australia and NDIA staff to develop its goals are to increase the proportion of employees Reconciliation Action Plan, a Rural and Remote with disability and Indigenous employees in its • The NDIA maintains a gold membership of Strategy and specific actions for recruiting and workforce and to become an employer of choice the Australian Network on Disability, which developing Aboriginal and Torres Strait Islander for people from diversity groups. The Agency’s helps the Agency to audit its recruitment employees. Accessibility Plan 2013–15, released in February and accessibility strategies for people with 2014, outlines these goals and strategies in disability. detail. • The Agency is working with the Australian Staffing statistics figures People with disability Public Service Commission (APSC) to and develop special measures to allow targeted TABLE 4: NDIA STAFF SNAPSHOT 2013–14 recruitment of people with disability for The NDIA’s Accessibility Strategy outlines Facts significant roles within the Agency, such as its approach to increasing employment the Planner and LAC roles where peer support Staff Headcount FTE opportunities and accessibility for people with is expected to provide positive benefits to disability. The Agency’s policies, systems and participants and the NDIS. Total 516 497.04 processes encourage people with disability to actively seek employment with NDIA and Ongoing 476 458.96 • The Agency’s Reasonable Adjustment Policy support them to perform to their full capacity. provides potential and existing employees Non-ongoing 39 37.08 For instance: with an equal opportunity to apply for or Irregular/intermittent/casual 1 1.00 perform a role in the Agency regardless of • Current recruitment campaigns encourage an existing disability. A disability support SES* 23 23.00 people with disability, or a lived experience officer assists employees and their managers with disability, to apply. This is reinforced in the EL 1 and 2 equivalent* 148 145.29 and reasonable adjustment and assistive candidate packs and selection criteria for all technology helps people to carry out the APS 1-6 equivalent* 345 328.75 roles. requirements of their job. Average age 41 n/a • Each selection panel includes a person The Agency also promotes employment of Average length of service in 8.69 n/a with disability, usually an independent people with disability throughout the APS, for Agency (months) panel member, to reaffirm the Agency’s example, by participating in the APS pilot of the commitment to employing people with Average length of service in 4.30 n/a RecruitAbility scheme—an initiative to support disability. APS (years) the employment of people with disability. Where a candidate whose skills, experience Female (per cent) 75 n/a • Every selection interview includes a and knowledge meet the minimum criteria question relating to the selection criteria for Proportion Male (per cent) 25 n/a and identify as a person with disability, they accommodating the needs of a person with automatically progress to the interview stage of Proportion Part-Time (per cent) 12 n/a disability. a selection process. *Classifications based on substantive positions

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TABLE 6: NDIA STAFF BY SUBSTANTIVE CLASSIFICATION, GENDER, EMPLOYMENT CATEGORY AND Staffing statistics (cont…) EMPLOYMENT STATUS (HEADCOUNT)

TABLE 5: NDIA STAFF BY LOCATION (TRIAL SITES/NATIONAL OFFICE), SUBSTANTIVE CLASSIFICATION AND GENDER (FTE) Ongoing Non-ongoing

Classification Gender Full- Part- Full- Part- Total Classification Gender ACT VIC NSW SA TAS WA NT NO Total Time Time Time Time APS 2 Female 1.00 1.00 1.00 3.00 APS 2 Female 2 2 Male 1.00 1.00 Male 2 2 APS 3 Female 1.00 8.00 2.80 1.00 2.00 2.23 17.03 APS 3 Female 12 1 3 2 18 Male 1.00 1.00 1.00 1.00 4.00 Male 2 1 3 APS 4 Female 2.00 3.00 6.00 3.00 2.00 4.00 4.66 24.66 APS 4 Female 24 1 25 Male 1.00 4.00 1.00 1.00 1.00 8.00 Male 8 8 APS 5 Female 8.93 34.65 20.24 15.90 4.07 2.00 9.80 95.59 APS 5 Female 82 16 2 100 Male 4.00 6.00 4.00 1.00 4.00 19.00 Male 19 19 APS 6 Female 10.00 34.43 25.99 21.00 8.90 5.00 1.00 16.30 122.62 APS 6 Female 95 32 5 1 133 Male 2.00 7.00 8.00 2.00 1.85 10.00 30.85 Male 28 2 1 31 figures EL 1 Female 4.00 10.00 5.00 7.20 2.00 3.00 1.00 17.00 49.20 EL 1 Female 43 2 5 50 and Male 1.00 1.00 2.00 1.00 3.00 1.00 24.80 33.80 Male 30 3 1 34 EL 2 Female 1.00 2.89 3.00 3.20 3.00 3.00 1.00 19.40 36.49 Facts EL 2 Female 31 4 2 1 38 Male 1.00 1.00 16.80 18.80 Male 15 1 3 19 Legal Officer Female 2.00 2.00 Legal Officer Female 2 2 Male 1.00 1.00 Male 1 1 Senior Legal Female 1.00 1.00 Senior Legal Female 1 1 Officer Officer Male 1.00 1.00 Male 1 1 Principal Female 2.00 2.00 Principal Legal Female 2 2 Legal Officer Officer Male 0 Male 1 1 Public Affairs Female 1.00 1.00 Public Affairs Female 1 1 Officer Officer Male 1.00 1.00 Male 1 1 SES Band 1 Female 1.00 1.00 1.00 1.00 1.00 1.00 6.00 12.00 SES Band 1 Female 9 3 12 Male 5.00 5.00 Male 4 1 5 SES Band 2 Female 4.00 4.00 SES Band 2 Female 3 1 4 Male 1.00 1.00 Male 1 1 SES Band 3 Female 0 SES Band 3 Female 0 Male 1.00 1.00 Male 1 1

Note: casuals are excluded Note: casuals are excluded

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Staffing statistics (cont…)

TABLE 7: NDIA STAFF WITH DISABILITY AND NON-DISABILITY (30 JUNE 2014)

Location Disability Non- Not Total Percentage disability disclosed

Total staff 56 237 231 524 10.7 Barwon, VIC 17 51 50 118 14.4 Adelaide, SA 4 33 25 62 6.5

Hunter, NSW 13 43 28 84 15.5 Tasmania 2 15 14 31 6.5 Barkly, NT 1 0 2 3 33.3 ACT 3 18 14 35 8.6 WA 3 3 10 16 18.8 Total Trial Sites 43 163 143 349 12.3 National Office 13 74 88 175 7.4 figures and Facts Ethical standards

The NDIA promotes ethical standards of behaviour by providing extensive information to staff and reviewing existing policies and procedures to make sure they are effective. The Agency’s intranet contains information on:

• the APS Values and Code of Conduct • bullying and harassment • acceptance of gifts and benefits • conflict of interest and outside employment • ethical behaviour in practice.

The intranet also provides links to relevant information on external websites, for example, the APSC website.

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Part F: Workforce planning

Recruitment Employment SES remuneration In 2013–14, workforce • conducted 108 external recruitment processes arrangements NDIA SES employees are offered a remuneration planning was and employment conditions package according to integrated into the • made 428 employment offers The FaHCSIA Enterprise Agreement a determination under the PS Act (section 24(1)). Agency’s business 2012–2014 applied to non-SES Remuneration includes salary, an executive vehicle • attracted an average of 37 applicants for each job NDIA staff for the duration of benefit, and may include additional salary payments and planning. The plan is advertised externally. 2013–14. The Agreement allows for other remuneration benefits approved by the Secretary in supported by division- Individual Flexibility Arrangements accordance with this policy. The Agency maintained recruitment order of merit (IFAs) for working hours, leave and level workforce lists which were used to fill ongoing and non-ongoing remuneration. At 30 June 2014, The following SES salary ranges applied with effect from 1 plans developed in vacancies where appropriate. 501 employees were covered by the July 2013 (Table 8): Agreement of which 31 were the consultation with subject of IFAs. TABLE 8: SES REMUNERATION Retention Senior Executive Through its industrial arrangements Service (SES) staff. Initiatives to support staff retention included: with employees, the NDIA also Classification Salary range permits employees to flexibly figures • staff rotations, transfers and temporary assignments package their remuneration to SES band 1 $161 723 – $174 836 – $187 949 In addition, work has combine both monetary and non- and started on: • supported learning and development monetary benefits. Significant SES band 2 $208 711 – $220 731 – $232 751 Facts benefits offered include acquiring SES band 3 See note • flexible working arrangements. a motor vehicle through novated • developing an organisational lease arrangements and additional workforce planning framework, employer superannuation Note: no salary band exists for the SES Band 3 based on the workforce classification. Remuneration for SES Band 3 employees is Separation contributions. established having regard to the Executive Remuneration planning methodology developed by the APSC Policy developed by the APSC. • a 6.9 per cent voluntary separation rate (resignations The NDIA has commenced processes from the APS and retirements) to negotiate its first enterprise • analysing the profile of the agreement in line with the 2014 Agency’s workforce using • 10.3 per cent of separations resulted from staff ending Public Sector Workplace Bargaining At 30 June 2014, there were 23 SES employees covered the robust APS Work Level non-ongoing contracts, temporary reassignment of Policy. As a new agency, the firm by section 24(1) determinations. Standards to meet priorities duties or moving to other agencies. focus is on developing an affordable and budget. agreement that aligns with NDIA’s SES salary levels are reviewed by the CEO each year following the completion of annual performance The NDIA’s People and Culture Absences servicerequirementsdeliveryforneedsthe fullandscheme.considers appraisals. Recommendations on remuneration increases Committee met every six weeks to review a comprehensive for SES employees abide by the APSC’s recommendation The NDIA’s unscheduled absence rate of 4.6 days per FTE report providing quantitative that salary increases not exceed three per cent per (compared with a rate of 11.6 for the APS overall) attests and qualitative analysis of the annum. to the generally high level of wellbeing and commitment workforce, including trend data. to the organisation amongst the Agency’s staff. Highlights from these reports are The Agency does not use common law contracts for the as follows. employment of staff.

The remuneration and employment conditions package offered under this policy comply with the requirements of the Executive Remuneration Management Policy issued by the APSC.

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Training and development Employee engagement

The NDIA lays the groundwork for a learning and development culture with a framework that results The NDIA conducted its first employee survey in improved performance, individual growth and organisational benefits. The framework recognises in April 2014 and participated in the APS-wide that responsibility for learning and development is shared between individuals, their managers and the employee census that was conducted in May Agency. 2014. Employee participation in the Agency survey was voluntary and 75 per cent of staff In 2013–14, the Agency’s primary focus was on developing the technical skills of new employees agreed to participate. Results of these surveys however the Agency provided a variety of learning and development opportunities throughout the were not available in time to be included in this year. These can best be described under five headings with examples including: report. • core skills – financial management, contract management, and communicating effectively Performance pay • technical training – working under an insurance actuarial model, NDIS Act–the legislation, mainstream interfaces, and NDIS participant goal planning No performance pay arrangements apply in the NDIA. • leadership and coaching – an Agency-wide in-house learning and culture workshop as part of the transition to the Geelong office and an induction programme for new SES officers run externally by Performance the APSC • study assistance – financial assistance and study leave for relevant external study management figures • conferences – DisabilityCare Australia2 Conference, National Occupational Therapy Conference and Under the Agency’s Enterprise Agreement, all Australian Housing and Research Institute Conference. NDIA employees are required to participate in the and performance management process. Facts The total investment in learning and development activities in 2013–14 was over $1 million, or 2.1 per cent of the Agency’s total expenditure on salaries and wages. In 2013–14, the NDIA used the DSS performance framework, Talking About Performance (TAP). The Agency has commenced a review into both the framework and the management of Note, this expenditure: underperformance in the NDIA.

• does not include the significant investment which was required in the six weeks before 1 July 2013 to open the doors to the new Agency and it does not include People strategy overheads like venue hire, catering and travel; and The NDIA people strategy seeks to maximise the Agency’s effectiveness by placing the right • includes designing, developing and delivering internal people in the right jobs doing the right work. training courses, payment for executive coaching services, The strategy underpins accountability and registration fees associated with external programmes governance frameworks and incorporates the and attendance at conferences, and financial assistance Agency’s mission and values, organisation for employee study. structures, systems and management capability. Its people management principles encourage open, two way communication at all levels, clearly defined accountabilities, fair and transparent processes and work and private life balance.

2 The NDIS was branded as DisabilityCare Australia at 1 July 2013, but reverted to the NDIS in late 2013

98 | national disability insurance agency | 2014 annual report 99

Part G: NDIA facilities and workplace health and safety

National Office Reportable items

In June 2013, the then Government announced Specific action taken in 2013–14 included: In 2013–14, the NDIA: that the National Office of the NDIA would be relocated to Geelong, Victoria. This transition • establishing a Work Health and Safety • notified Comcare of no incidents pursuant to section 38 of the WHS Act to the new site commenced from 1 January Committee in accordance with the WHS Act 2014 and was completed by 1 July 2014. It was • undertook no investigations under Part 10 of the WHS Act. assisted by a comprehensive transition strategy, • developing and implementing a health and covering all aspects of the move including staff safety management system with assistance The WHS Act requires the NDIA to provide statistics of any notifiable incidents of which it became recruitment, relocation, training, and knowledge from DSS aware during the year that arose out of the conduct of business or undertakings by the entity, and any transfer. A package of assistance was agreed for investigations conducted and notices given. Table 9 provides a summary in accordance with the Act. existing Agency staff who chose to relocate to • conducting health and wellbeing activities Geelong. such as influenza vaccinations and workstation assessments The fit out of the site was finalised for staff TABLE 9: SUMMARY OF NOTIFIABLE INCIDENTS, INVESTIGATIONS AND NOTICES UNDER THE to move in on 11 April 2014 and most staff • offering an employee assistance programme WHS ACT, 1 JULY 2013 TO 30 JUNE 2014 figures relocated to or commenced at the Brougham providing free, confidential and professional and Street office by 30 June 2014. counselling to employees and their immediate family members including a dedicated and Action Number Facts As at 30 June 2014, $1 461 103 had been spent confidential programme for managers and on the move to Geelong. This includes costs executives Death of a person that required notice to Comcare under section 35 0 associated with recruitment, staff relocation and property. • providing an online interactive wellbeing Serious injury or illness of a person that required notice to Comcare under 0 section 35 resource which provides information and guidance on work and personal issues. Dangerous incident that required notice to Comcare under section 35 0 Work health and safety Investigations conducted under Part 10 0 performance Notices given to FaHCSIA under section 90 (provisional improvement 0 notices) The NDIA acknowledges its employer Notices given to FaHCSIA under section 191 (improvement notices) 0 responsibilities under the Work Health and Safety Act 2011 (WHS Act), the Safety, Rehabilitation Notices given to FaHCSIA under section 195 (prohibition notices) 0 and Compensation Act 1988 and anti- discrimination legislation. Directions given to FaHCSIA under section 198 (non-disturbance) 0

The Agency takes all reasonably practicable measures to protect the health, safety and welfare of its workers while at work, including The Agency’s workers’ compensation premium for 2013–14 was $723 990 or 1.53 per cent of payroll costs. providing a safe work environment, establishing a Work Health and Safety Policy and implementing Health and Safety Management Arrangements aligned with the NDIA’s philosophy of looking after and valuing its people.

100 | national disability insurance agency | 2014 annual report 101

Part H: Reporting obligations

Ecological sustainable • providingactuarial advisorythe schemeservicesactuarywhileroletheandteam was Advertising and market InCategory2013–14,A findingsan internal(to beauditresolvedproducedwithinthreesix development being recruited research months)resolved withinand two12categorymonths).B findings (to be • strategic planning and advice relating to The NDIA introduced ecological and sustainable risk management, property design and During 2013–14, advertising campaigns for There were no ANAO performance audits of the measures at each of its sites including: documentation services the NDIA were run under the DSS (formally Agency during 2013–14, and the Agency did not FaHCSIA) portfolio. Further information on participate in any cross-portfolio audits. • providing food waste bins in all trial sites • strategic property planning those advertising campaigns is available There were no Category A findings from the at www.dss.gov.au and in the reports on ANAO’s financial statements audit. • recycling, including printer toner • options to fill the LAC and planner roles within Australian Government advertising prepared trial sites by the Department of Finance. Those reports • sensor-driven lighting and efficient ‘T5’ are available at www.finance.gov.au/advertising/ Purchasing policies fluorescent lights in all new locations • strategic analysis to facilitate the delivery of index.html. the full scheme roll-out As a matter of good practice, the Agency is • dual-flush toilets in all sites • conducting accessibility assessments for trial Grants programmes committedwith the Commonwealthto undertakingProcurementprocurementsRulesin line • environmentally friendly cleaning products site development. (CPRs). The Agency has procurement policies used by cleaners in all sites The NDIA does not publicly report details of which govern the procurement of all goods figures any grants as it was a non-prescribed CAC Act and services within the Agency. The Agency • an electronic filing system to decrease Agency. is committed to achieving value for money and Contracts wasted paper outcomes for all procurement activities, which As the NDIA was a non-prescribed CAC Act includes encouraging competition, ensuring Facts • IT applied duplex black and white printing and Agency it was not required to report on Internal Audit efficient, effective, economical and ethical use copying as a default option AusTender. of resources and ensuring accountability and The objectives of the Agency’s internal audit transparency in decision-making. • carbon-neutral printing paper in all sites. The details of the contracts let during 2013–14 programme are to: of $100,000 or more which did not provide No Energy or Green ratings have yet been for the Auditor-General to have access to the • provide assurance to the CEO and Board Purchaser–provider awarded to any NDIA site because they are contractor’s premises are: that the NDIA’s financial and operational required to be in location for at least 12 months. controls are operating in an efficient, effective, arrangements economical and ethical manner • Civil Aviation Safety Authority $146 200.00, Consultancies secondment of staff member • assist management in improving the Agency’s TheUnderstandingAgency has(MoU)a Memorandumwith the DSSof for the business performance. provision of corporate and ICT services. The MoU • Deakin University $155 017.50, secondment of During 2013 –14, the NDIA spent $4.704 million staff member is for an initial period of two years commencing (GST inclusive) on consulting costs. These The ARC has overall responsibility for the internal 1 July 2013, with formal reviews at least every services were crucial during the first year of • PCA People $209 000.00, contractor services audit programme, including determining the six months. The value of the MoU in the 2013–14 the NDIA. Some of the vital skill sets are being audits to be conducted, receiving reports, and financial year was $30.5 million. staffed in-house as the recruitment process • Ernst & Young $175 863.60, accounting advice monitoring management action taken to address continues. However, to ensure the NDIA remains audit findings. The Agency also has bilateral agreements administratively lean, the Agency has utilised with states and territories which provide the contestable requests for tender to outsource key The ARC has endorsed a three year internal foundation for the NDIS in trial sites and outline functions. Examples of the types of services that audit plan covering 2013–14 to 2015–16, how the NDIS is expected to operate in trial were provided by consultants include: with provision for annual review based on sites including the roles and responsibilities of consideration of relative risks and operational the Commonwealth and respective state and priorities. territory governments.

102 | national disability insurance agency | 2014 annual report 103

SECTION 4: This section of the 2013-14 Scheme sustainability & financial performance Annual Report contains the NDIA’s financial statements.

104 | national disability insurance agency | 2014 annual report 105

ME Sustainability reports

National

disabilityinsurance Agency

Summary of Annual Financial Sustainability Report

Sarah Johnson BCom FIAA Scheme Actuary September 2014

Introduction

The National Disability Insurance Scheme (NDIS) Act received Royal Assent on 28 March 2013, and the NDIS became fully operational on 1 July 2013 with the commencement of NDIS trial sites. A number of significant milestones in recent history contributed to the launch of the NDIS, and importantly the insurance approach to funding and supporting people with a

disability over their lifetime.

The NDIS Act commits to the provision of reasonable and necessary supports, including early intervention supports, to all eligible participants. Unlike the existing disability system, eligible participants will be provided with reasonable and necessary supports and this introduces financial risk into the disability system. This annual sustainability report is required under section 180B of the NDIS Act, and provides an assessment of the financial sustainability of the NDIS after its first year of operations. Further, this report describes the methodology for monitoring financial sustainability.

The framework for monitoring financial sustainability

Financial sustainability can be defined as a state where:

e The scheme is successful on the balance of objective measures and projections of economic and social participation and independence, and on participants’ views that they are getting enough money to buy enough goods and services to allow them reasonable access to life opportunities — that is, reasonable and necessary supports; and

e contributing governments think that the cost is and will continue to be affordable, is under control, represents value for money and, therefore, remain willing to contribute.

In order to continue to achieve financial sustainability a solid framework for monitoring financial sustainability is required. This framework includes continuous monitoring and evaluation of participant outcomes and costs.

106 | national disability insurance agency | 2014 annual report

Baseline

assumptions and projections

Monitoring Incorporate hi fi ial Monitoring of actual emerging scheme financial experience experience into sustainability compared with

assumptions and projections

expected experience

(Actuarial control cycle)

Investigate

emerging trends and experience

Specifically, the framework involves collecting data on the number of participants, the characteristics of these participants (to allow analysis of reference groups), the outcomes for these participants, and the cost of supports provided to participants. This allows a detailed understanding of deviations between actual and expected experience and hence identification of cost drivers. This information can then be used by the NDIS Board and NDIA management to implement any changes required to continue to ensure the NDIS remains financially sustainable.

Factors contributing to deviations

Service Providers Cost of supports

A H Participant ell Mainstream services Pp Participant

characteristics

Family and friends (eg. reference outcomes and eroubs) scheme costs

Community inclusiveness Geography

Availability of supports

Scheme experience

As at 30 June 2014: e 10,271 people had lodged an access request e 8,585 participants were eligible for the scheme

e 7,316 participants had an approved plan.

The Productivity Commission estimates assumed that around 2.2% of the population under 65 years would be eligible for the NDIS — specifically 2.9% for 0-14 year olds, 1.8% for 15-49 year olds, and 2.4% for 50-64 years olds. Whilst one year’s worth of experience is not adequate to understand the number of participants at full scheme, departure from the Productivity Commission estimates does not seem warranted. Specifically:

e The New South Wales and Victorian trial sites appear likely to have a lower number of participants than expected. The number of medium and high cost participants across the trial sites is likely to be broadly in line with expected. However, the number of low cost participants is likely to be lower than expected.

107

 The numbers of participants in the South Australian and Tasmanian age-specific trial Overall: sites are tracking in line with expected.  Package costs at full scheme in 2019/20 are estimated to be $21.8 billion, including  A number of people in current disability programs have declined to phase into the $1.2 billion for people aged over 65 years. Scheme or have withdrawn indicating they may not need NDIS support at the present  The effect of introducing the NIIS reduces the cost of the NDIS over time. Further, some time, but may require some support in the future (or episodically). people with serious injury are already covered under accident compensation scheme Understanding the distribution of cost is critical to managing the financial sustainability of the arrangements and hence do not require the support of the NDIS. The impact in 2019/20 scheme. As mentioned above, a higher proportion of low cost participants were expected reduces the total cost of the NDIS to $21.1 billion. compared with actual experience in the New South Wales and Victorian trial sites. The distribution of cost is skewed towards a small number of participants with high cost packages  Including operating costs increases this to $22.7 billion. – specifically, of the 5,148 active participants with approved plans in the New South Wales  Including an efficiency dividend2 due to early investment reduces this number to and Victorian trial sites, 3,346 participants have an annualised package cost of less than $22.4 billion. The efficiency dividend could be higher or lower than expected, and more $30,000 (65%). The total annualised package costs of these 3,346 participants only experience (over many years) will need to emerge to understand the actual efficiency represent 18% of committed supports. On the other hand, the total annualised package dividend. costs of the 571 participants with support packages of more than $100,000 represents 49% of total committed supports. In 2044/45, over 65 year olds represent a much higher proportion of package costs – around 27% of costs compared with 5% in 2019/20. Further, the reduction due to the maturing of the Lastly, analysis of packages across age groups and disability types indicates that costs NIIS increases – in 2044/45 this is $6.1 billion (around 6% of total package costs). increase with age, with children costing less than adults. This is in line with the Productivity Commission estimates. Compared with the PC estimates of full scheme costs, the estimates below are consistent when considering inflation and population growth, and only considering participants under Projections the age of 65 years – 0.9% of GDP in the long term (see figure below). However, as In order to project the costs of the NDIS over time, a number of assumptions were required. participants age in the scheme the cost of the scheme increases from 0.9% of GDP in These assumptions include: 2019/20 to 1.3% in 2044/45, with the additional 0.4% of GDP contributing to the cost of the aged care system.  rates of new incidence by age and disability Projected total cost as a % of projected GDP  rates of exit from the scheme, both through mortality and because of no longer requiring 2.0% NDIS support performance  ageing in the scheme 1.5% financial  package costs over the participant’s lifetime (including the impact of early investment) &

1.0%  inflation

0-64 years  estimates of the impact of accident compensation schemes and particularly the National 0.5% 0-64 years (including efficiency dividend) All ages sustainability Injury Insurance Scheme (NIIS)1 All ages (including efficiency dividend)  operating costs. 0.0% Scheme 2015 2020 2025 2030 2035 2040 2045 Financial year

1 The proposed NIIS sees States/Territories put in place arrangements to cover the care and support needs of people seriously injured in motor vehicle accidents, the workplace, through medical misadventure, or other means (referred to as general injury), regardless of whether the individual was at fault in the accident. 2 The Productivity Commission assumed early investment would result in reduced costs in the future.

3 4

108 | national disability insurance agency | 2014 annual report 109

The PC provided a range around the full scheme estimate indicating that the estimate was participants and potential participants in the lead up to, and throughout, transition is uncertain. In order to better manage short term cash flow uncertainty, a buffer could be required. considered. This buffer would provide more certainty to funders of the scheme of their required contributions, and allow any fluctuations in experience to be managed by putting in  Participants need to remain satisfied, and the community needs to continue to see value place appropriate operational changes. Further, a buffer would allow the Agency to take a for money in the NDIS. Clear information on reasonable and necessary supports and longer term view and invest early in participants to achieve reduced lifetime costs. The buffer comfort that the scheme will support participant needs, including in ways that may be could be in the order of around 10%-15% subject to further analysis of emerging experience, different from current service models. Communication of the performance of the Scheme and would not be drawn upon unless needed. (both participant outcomes and financial sustainability) by the NDIA will also assist in building community confidence. Managing financial sustainability Operational effectiveness There are a number of steps that could be taken to support the surety of scheme financial sustainability. These measures go to both components of financial sustainability – (a)  The ICT system needs to accommodate a longitudinal database, provide expert support achieving outcomes for people with disability, and (b) doing this at a continuing affordable to front-line staff, and meet the needs of participants and service providers. A cost. These steps include pre-empting potential cost escalation, achieving outcomes, and longitudinal database is essential to scheme financial sustainability and the actuarial operational efficiency. analysis described in this report. Further, the ICT system should meet the needs of NDIA operations, participants and services providers. The current ICT system does not meet Cost escalation these requirements.  Funding needs to be adequate to meet reasonable and necessary support, needs to be  The continuous learning culture now embedded in the NDIA is a critical component to certain, and needs to be predictable. Management of this funding needs to include meet the significant challenges of transition to full scheme. The Agency needs to actively detailed modelling of future scheme costs (as included in this report), and funding needs evolve in response to emerging experience, consultation and feedback, and ensure that to be based on the most up-to-date and reliable estimates of future costs which take into incoming workforce is committed to the values of the NDIS in maintaining financial account all scheme dynamics. sustainability.  Potential lack of mainstream services funded by other systems and a reduction in community and family support needs to be recognised and mitigated. Monitoring actual and expected experience, routinely gathering qualitative information, and putting in place memoranda of understanding will assist in mitigating this issue.  The capacity of the sector to expand to meet the increased demand from increased performance funding and develop innovative and flexible ways for supporting participants in the timelines outlined in the Heads of Agreement is critical. If demand increases at a rate financial that is faster than supply, then inflationary pressure will emerge. The scheme will need to & roll out at a pace which does not result in inflationary pressures, but which encourages sound investment from service providers to expand their operations and credible new entrants to enter the market. sustainability Achieving outcomes  Sector capacity to develop innovative and flexible ways for supporting participants is a Scheme necessary ingredient to achieve positive participant outcomes. Further, capacity of participants to articulate the supports they require in a way which contributes to them achieving a good life and improved outcomes is required to ensure financial sustainability. Considered full scheme transition planning and building the capacity of

5 6

110 | national disability insurance agency | 2014 annual report 111

Australian Governments

Australian Government Agency

at No.: Talaphone; 02 6265 427 Facsimile: 02 6263 2677 E-mail: peter martin aga. jov.au

1 October, 2014

Mr Bruce Bonyhady

Chair

National Disability Insurance Agency GPO Box 700

CANBERRA ACT 2607

Dear Mr Banyhady REVIEW OF FINANCIAL SUSTAINABILITY REPORT SUMMARY

| have reviewed the summary of the annual Financial Sustainability Report dated September 2014 as required under section 180E of the National Disability Insurance Scheme (NDIS} Act 2073,

The main focus of my review has been the reasonableness of the scheme actuary’s projections of long term costs of the NDIS.

lam satisfied that he assumptions adopted by the schame actuary are reasonable for the purpose of obtaining a realistic projection of long term scheme costs,

| am also satisfied that the projections are consistent with the assumptions adopled.

The scheme actuary has identified a number of Issues which have implications for tha financial sustainability of the scheme and which, in my view, warrant careful consideration. | draw your altantion particularly to her comments around the ICT system, the pace at which the scheme ramps up following the and of the trials and the importance of adopting a long term view when considering spending decisions.

Finally, | note that the Agency has taken the steps necessary for me to undertake this review.

Yours sincerely

EY Australian Goverment Actuary

112 | national disability insurance agency | 2014 annual report 113

MM Financial Statements

di

Independence In conducting my audit, I have followed the independence requirements of the Australian Australian National National Audit Office, which incorporate the requirements of the Australian accounting Audit Office profession, INDEPENDENT AUINTOR’S REPORT Opinion a thes Dataleter Son Geclal Sarricm In my opinion, the financial statements of the National Disability Insurance Scheme Launch

| have audited the accompanying financial statements of the National Disability Insurance Transition Agency:

Scheme Launch Transition Agency for the year ended 30 June 2014, which comprise: a . . . Ly Statement by the Chairman of the Board, Chief Executive and Chief Financial Officer; the (a) have been prepared in accordance with the Finance Minister’s Orders made under the Statement of Comprehensive Income; Statement of Financial Position; Statement of Changes Commonwealth Authorities and Companies Act 1997, including the Australian in Equity; Statement of Cash Flows; Schedule of Commitments; Schedule of Contingencies; Accounting Standards, and

and Notes to and Forming Part of the Financial Statements comprising a Summary of

Significant Accounting Policies and other explanatory information. (b) give a true and fair view of the matters required by the Finance Minister’s Orders

including the National Disability Insurance Scheme Launch Transition Agency’s financial position as at 30 June 2014 and its financial performance and cash flows for

Directors’ Responsibility for the Financial Statements the year then ended.

The directors of the National Disability Insurance Scheme Launch Transition Agency are responsible for the preparation of the financial statements that give a true and fair view in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997, including the Australian Accounting Standards, and for such internal control as is necessary to enable the preparation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Anditor’s Responsibility ” Le

lan Goodwin Group Exeeutive Director

Australian National Audit Office

My responsibility is to express an opinion on the financial statements based on my audit. I have conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, These auditing standards require that | comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement,

Delegate of the Auditor-General

Canberra 24 September 2014

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the National Disability Insurance Scheme Launch Transition Agency’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the National Disability Insurance Scheme Launch Transition Agency’s intemal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

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I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

‘GPO Box 707 CANBERRA ACT 2601 19 National Cirquit BARTON ACT 2600 Phone (02) 6203 7300 Fao (02) 6203 7777

114 | national disability insurance agency | 2014 annual report 115

National Disability Insurance Scheme Launch Transition Agency

Financial Statements for the year ended 30 June 2014

116 | national disability insurance agency | 2014 annual report

National Disability Insurance Scheme Launch Transition Agency STATEMENT BY THE CHAIRMAN OF THE BOARD, CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICER

in our opinion, the attached financial slatements for the year ended 30 June 2014 are based on property maintained fnancial ecoms and give a true and fair ew of the matters required by the Finance Minister’s Orders made under the Commonwealth Authanties and Companies Act 1997, as amended

Signed… oath aba eh

John Hill PSM

Director

Audit and Risk Committee Chainman 24 September 2014

24 Saptember 2014 24 September 2014

117

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National Disability Insurance Scheme Launch Transition Agency

STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 June 2014

NET COST OF SERVICES Expenses Employee benefits Supplier expenses Grants Participant plan expenses Depreciation Finance costs Loss from assets sales Total expenses

Own-source income

Own-source revenue Revenue from rendering of services Interest Other revenues

Total own-source revenue

Other own-sourced income

Resources received free of charge Total other own-sourced income Total own-source income

Net contribution by services

Revenue from Government Surplus attributable to the Australian Government

Total comprehensive income attributable to the Australian Government

The above statement should be read in conjunction with the accompanying notes.

118 | national disability insurance agency | 2014 annual report

Notes

3A 3B 3C 3D 3E 3F 3G

4A 4B 4c

4D

4E

2014 $’000

48,689 69,995 4,515 130,861 4,477

9

10 258,556

238,757 2,220 4,020

244,997

23,266 23,266 268,263 (9,707) 8,271

17,978

17,978

National Disability Insurance Scheme Launch Transition Agency STATEMENT OF FINANCIAL POSITION as at 30 June 2014

2014 Notes $’000 ASSETS Financial assets Cash and cash equivalents 6A 122,325 Trade and other receivables 6B 3,649 Total financial assets 125,974 Non-financial assets Buildings (leasehold improvements) 7A 20,461 Property, plant and equipment 7B 897 Intangibles 7D 277 Other non-financial assets 7F 691 Total non-financial assets 22,326 Total assets 148,300 LIABILITIES Suppliers 8A 12,340 Participant plan payables 8B 1,476 Other payables 8C 2,356 Total payables 16,172 Provisions Employee provisions 9A 6,874 Participant plan provisions 9B 66,400 Other provisions 9C 2,186 Total provisions 75,460 Total liabilities 91,632 Net assets 56,668 EQUITY Contributed equity 38,690 Retained surplus 17,978 Total equity 56,668

The above statement should be read in conjunction with the accompanying notes.

119

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120 | national disability insurance agency | 2014 annual report

17,978

17,978

Total comprehensive income

Transactions with owners Contributions by owners

Restructuring’

8,676 30,014

8,676 30,014

Equity injection - Appropriation Departmental capital budget

38,690

38,690

Sub-total transactions with owners Closing balances as at 30 June

38,690 56,668

17,978

Closing balance attributable to the Australian Government

The above statement should be read in conjunction with the accompanying notes.

On 1 July 2013, the Agency became financially independent from the then Department of Families, Housing, Community Services and Indigenous Affairs. On that date, a number of assets and liabilities were transferred to the Agency as part of an administrative restructure. The net book value of the assets transferred was treated as a

contribution to the Agency. Refer to Note 10 for details.

1

National Disability Insurance Scheme Launch Transition Agency STATEMENT OF CASH FLOWS for the year ended 30 June 2014

Notes OPERATING ACTIVITIES Cash received Revenue from Government State and Territory Government contributions Interest received Department of Social Services Other Total cash received Cash used Employee benefits Supplier expenses Participant plan expenses Grant payments Total cash used Net cash from operating activities 11 INVESTING ACTIVITIES Cash used Purchase of buildings and property, plant and equipment Total cash used Net cash used by investing activities FINANCING ACTIVITIES Cash received Equity injection Total cash received Net cash from financing activities Net increase in cash held Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period 6A

The above statement should be read in conjunction with the accompanying notes.

2014 $’000

7,384 48,674 2,065 190,083 4,020

252,226

42,438 53,485 42,285 4,515 142,723

109,503

17,192 17,192 17,192

30,014 30,014

30,014

122,325

122,325

121

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National Disability Insurance Scheme Launch Transition Agency SCHEDULE OF COMMITMENTS as at 30 June 2014

Notes

BY TYPE Commitments receivable

State and Territory Government Scheme Contributions

State and Territory Government Scheme Contributions

Total State and Territory Government Scheme contributions receivable

GST commitment receivable

Net GST recoverable on commitments

Total GST receivable Total commitments receivable

Commitments payable Capital commitments Land and buildings Property, plant and equipment Total capital commitments Other commitments Operating leases Participant plans Suppliers Total other commitments Total commitments payable Net commitments by type

122 | national disability insurance agency | 2014 annual report

2014 $’000

850,585

850,585

6,696 6,696 857,281

(7,261) (20) (7,281)

(25,839) (154,502)

(43,402) (223,743)

(231,024)

626,257

National Disability Insurance Scheme Launch Transition Agency SCHEDULE OF COMMITMENTS as at 30 June 2014

BY MATURITY Commitments receivable State and Territory Government Scheme Contributions Within 1 year Between 1 to 5 years Total State and Territory Government Scheme contributions receivable GST commitment receivable Within 1 year Between 1 to 5 years More than 5 years Total GST receivable Total commitments receivable

Commitments payable Capital commitments Within 1 year Total capital commitments Operating lease commitments‘ Within 1 year Between 1 to 5 years More than 5 years Total operating lease commitments Participant plan Within 1 year Total participant plan commitments Supplier commitments Within 1 year Between 1 to 5 years Total supplier commitments Total commitments payable Net commitments by maturity

2014 $’000

252,055 598,530

850,585

4,425 1,526 745 6,696 857,281

(7,281) (7,281)

(5,485) (12,160)

(8,194) (25,839)

(154,502) (154,502)

(38,773) (4,629) (43,402) (231,024) 626,257

• Motor Vehicles — fully maintained operating leases over periods up to 24 months that do not have contingent

rentals and do not have renewal or purchase options available at the end of the lease.

Property leases — lease payments subject to increases in accordance with CPI or other agreed increment with

initial periods of between 1 and 10 years. Some leases have options to extend.

123

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National Disability Insurance Scheme Launch Transition Agency National Disability Insurance Scheme Launch Transition Agency SCHEDULE OF CONTINGENCIES NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS as at 30 June 2014 Note 1: Significant Accounting Policies………………………………………………………………………………….. 10 Note 2: Events After The Reporting Period……………………………………………………………………………… 17 The Agency does not have any contingent assets or contingent liabilities at 30 June 2014. Note 3: Expenses …………………………………………………………………………………………………………………… 18 Note 4: Own-Source Income …………………………………………………………………………………………………… 20 Note 5: Fair Value Measurements …………………………………………………………………………………………… 21 Note 6: Financial Assets ………………………………………………………………………………………………………… 24 Note 7: Non-Financial Assets …………………………………………………………………………………………………. 25 Note 8: Payables ……………………………………………………………………………………………………………………. 30 Note 9: Provisions………………………………………………………………………………………………………………….. 31 Note 10: Restructuring …………………………………………………………………………………………………………….. 32 Note 11: Cash Flow Reconciliation …………………………………………………………………………………………… 33 Note 12: Contingent Assets and Liabilities……………………………………………………………………………….. 34 Note 13: Senior Executive Remuneration………………………………………………………………………………….. 35 Note 14: Directors Remuneration……………………………………………………………………………………………… 38 Note 15: Related Party Disclosures ………………………………………………………………………………………….. 39 Note 16: Remuneration of Auditors ………………………………………………………………………………………….. 40 Note 17: Financial Instruments…………………………………………………………………………………………………. 41 Note 18: Compensation and Debt Relief……………………………………………………………………………………. 44 Note 19: Reporting of Outcomes………………………………………………………………………………………………. 45 Note 20: Scheme Operations ……………………………………………………………………………………………………. 46 performance financial & sustainability Scheme

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Note 1: Significant Accounting Policies

1.1 General information

The National Disability Insurance Scheme Launch Transition Agency (‘the Agency’ or ‘Entity’) was established on 29 March 2013 by the National Disability Insurance Scheme Act 2073 (‘the Act’) and became financially independent on 1 July 2013. The Agency is an Australian Government controlled not-for-profit entity with the address of its head office located at Level 1, 43-45 Brougham Street, Geelong Victoria 3220.

From 1 July 2013, arrangements were put in place to ensure that the National Disability Insurance Scheme (‘the Scheme’) could be introduced gradually, ensuring a smooth transition for people with disability and support providers. The first stage of the Scheme was rolled out in South Australia, Tasmania, the Barwon area of Victoria and the Hunter area of New South Wales. The Australian Capital Territory, the Perth Hills area of Western Australia and the Barkly area of the Northern Territory joined the launch phase of the Scheme from 1 July 2014.

1.2 Objectives of the Agency

The objective of the Agency is to operate under the Act, and in conjunction with other legislation, to give effect to Australia’s obligations under the Convention on the Rights of Persons with Disabilities. In doing so, the Agency supports the independence and social and economic participation of people with a disability.

The Agency enables each participant to exercise individual control and choice in respect to the delivery of reasonable, necessary care and support and undertakes to support people with disabilities, their families and carers. It also works to support the wider disability sector in order to promote better outcomes for people with a disability, in areas such as research and building community awareness.

The Agency is also responsible for reporting on the sustainability of the Scheme, including regularly making and assessing estimates of current and future expenditure as well as identifying and managing financial risks and issues relevant to the financial sustainability of the Scheme. This is achieved by adopting an insurance-based approach, informed by actuarial analysis, to the provision and funding of support for people with a disability.

The Agency is structured to meet a single Government outcome of implementing a Scheme that provides individual choice and in the delivery of reasonable and necessary care, supports to improve the independence social and economic participation of eligible people with disability, their families and carers as well as associated referral services and activities.

The continued existence of the Agency in its present form, and with its present programs, is dependent on Government policy and on continuing funding by Parliament for the Agency’s administration and programs.

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National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

1.3 Basis of preparation of the financial statements The financial statements are general purpose financial statements and are required by Schedule 1, clause 1(b) of the Commonwealth Authorities and Companies Act 1997 (‘CAC Act’).

The financial statements have been prepared in accordance with: a) Finance Minister’s Orders (Financial Statements for reporting periods ending on or after 1 July 2011) (‘FMOs’); and b) Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities which are recorded at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position of the Agency. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars, unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts (where one or more parties have not yet fulfilled their performance obligations) are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments or the Schedule of Contingencies.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

As a result of the Agency becoming financially independent from 1 July 2013, only current year figures covering the period from financial independence are shown.

1.3.1 Significant accounting judgements and estimates

In the process of applying the accounting policies listed in this note, the Agency has made the following judgements and estimates that have the most significant impact on the amounts recorded in the financial statements:

Participant plan provision

The Agency recognises a liability for the costs of reasonable care and support at the time that services are provided to participants in the Scheme. Due to the administrative processes associated with receiving and processing claims, at the end of an accounting period, the Agency may not have been notified of the full value of all the services provided during that period. Therefore, the Agency records a provision for the reasonable care and support for participants provided during the period but not yet notified to the Agency based on its best estimate of the outstanding liability using the guidance in accounting standards. This estimate is informed by actuarial analysis and includes consideration of participant claims history and other relevant factors. The participant plan provision is disclosed in Note 9B and further information is available in Note 20.

In-kind contributions

The Agency records income in relation to in-kind contributions from Commonwealth, state and territory governments at the time when the services are provided to participants, as disclosed in Note 1.3.3. In some cases, the Agency may not have been formally notified that the Commonwealth or a state or territory government has provided or funded a contribution to a participant. The Agency makes an estimate of the amount of in-kind contributions provided to participants during the period but not yet notified to the Agency based on available evidence. The in-kind contributions are disclosed in Note 4D.

Given that only limited historical information is available in relation to participant claims history and the fact that the Scheme remains in the launch phase, the estimates of participant plan provision and in-kind contributions may require material adjustment in future accounting periods.

No other accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next twelve months.

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National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Fair value of property, plant and equipment

Buildings (leasehold improvements), property, plant and equipment are measured at their estimated fair value in the financial statements. The methods and techniques used for the measurement of fair value are set out in Note 5.

1.3.2 | Application of new and revised accounting standards

As the 2013-14 reporting period is the first for the agency there are effectively no new standards, revised standards, amended standards or interpretations issued by the AASBs prior to the sign off date that have a material financial impact on the Agency. No accounting standard has been adopted earlier than the application date as stated in the standard.

The requirements of AASB 1055 Budgetary Reporting will be applicable to the Agency for the first time in the financial year ending 30 June 2015. This standard will require the Agency to disclose budgetary information in the financial statements together with explanations for any major variances between actual and budgeted figures. Budgetary information is not required to be presented in respect of comparative periods and this standard will not result in changes to the recognition or measurement of amounts presented in these financial statements.

There have been no other revised or amended standards or interpretations that were issued by the AASB prior to the sign off date that are applicable to future reporting periods and are expected to have a future material financial impact on the Agency.

1.3.3. Revenue recognition Rendering of services Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date and is recognised when: a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and b) the probable economic benefits associated with the transaction will flow to the Agency.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

As of 30 June 2014 no allowance for doubtful debts has been raised as all receivables are deemed recoverable.

Interest revenue Interest revenue is recognised using the effective interest method as described below in the accounting policy for financial instruments.

Resources received free of charge

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been contributed. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government agency or authority as a consequence of a restructuring of administrative arrangements. Refer to Note 10 for details of the Agency’s restructuring efforts.

In-kind contributions

Prior to the commencement of the Scheme, the Commonwealth and each state and territory government had committed to provide (directly or by engaging service providers) items such as disability services, health, family support, education, employment, transport and/or housing to people with a disability. The provision of these services on behalf of the Agency is regarded as an in-kind contribution under Australian accounting standards and is accounted for as income from the contribution of services at the date when the services are provided. The fair value of these contributions is the notional unit value provided by the jurisdiction which is based on what the jurisdiction has paid under its funding arrangements with the provider.

In-kind contributions are recorded as resources received free of charge in Note 4D.

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Revenue from Government

Funding received or receivable from agencies (appropriated to the Agency as a CAC Act body payment item for payment to this entity) is recognised as Revenue from Government unless the funding is in the nature of an equity injection or a loan.

1.3.4 Gains and losses from disposal of assets Gains and losses from disposal of assets are recognised when control of the asset has passed to the buyer. For the year ended 30 June 2014, an immaterial loss on the sale of property, plant and equipment was recognised.

1.3.5 Transactions with the Government as owner

Equity injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and are recognised directly in contributed equity in that year.

Restructuring of administrative arrangements Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Other distributions to owners The Finance Ministers’ Orders require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.

1.3.6 Cash

Cash is recognised at its nominal amount and recorded in the statement of financial position. Cash and cash equivalents include cash on hand and term deposits in bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

1.3.7 Financial Instruments

Financial assets

The entity classifies its financial assets as loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition. Financial assets are recognised and derecognised upon trade date. During the period, all financial assets were classified as loans and receivables.

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Effective interest method

Interest income is recognised on an effective interest rate basis. The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument, or, where appropriate, a shorter period.

Financial assets carried at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

Financial assets carried at cost - if there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

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Financial liabilities

Financial liabilities, including supplier and other payables, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.3.8 Property, plant and equipment

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000 which are expensed in the year of acquisition.

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the Agency where there exists an obligation to restore the property to its original condition. These costs are included in the value of the Agency’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Revaluations Fair value measurement approaches for each class of asset are determined as follows:

Following initial recognition at cost, items of property, plant and equipment are carried at fair value. The Agency’s policy is to conduct valuations with sufficient frequency to ensure that the carrying value of items do not differ materially from their fair value at each reporting date. The Agency has considered its portfolio of property, plant and equipment portfolio at 30 June 2014 and determined that no independent valuation is required, having regard to the nature of items in the portfolio and the relatively recent purchase and/or construction of each of the items. Accordingly, no revaluation adjustments have been recognised in these financial statements. In future periods, the regularity of independent valuations will depended upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset was restated to the revalued amount.

Depreciation

Depreciation is recognised so as to write off the cost or revalued amount of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis. The table below outlines the depreciation rates applying to each class of depreciable asset based on the following useful lives:

Asset class Useful life Property, plant and equipment 3 to 10 years Buildings (leasehold improvements) Lesser of 10 years or the lease term

Impairment

All assets were assessed for impairment at 30 June 2014. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost. For the year ending 30 June 2014, no assets were subject to impairment.

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National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

1.3.9 Intangibles

The Agency’s intangibles comprise internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Agency’s software range between 7 and 10 years.

All intangible assets were assessed for indications of impairment as at 30 June 2014 and no impairments were recorded.

1.3.10 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Where an asset is acquired by means of a finance lease, the asset is capitalised on the statement of financial position at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight-line basis over the life of the lease, which is representative of the pattern of benefits derived from the leased assets.

Refer to the Schedule of Commitments for details on operating lease commitments.

1.3.11. Employee benefits

Liabilities for ‘short-term employee benefits’ and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the entity is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the entity’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The estimate of the present value of the liability for long service leave takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy

Provision is made for separation and redundancy benefit payments. The entity recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

The Agency’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap). The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance administered schedules and notes.

The Agency makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The entity accounts for the contributions as if they were contributions to defined contribution plans.

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National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

The liability for superannuation recognised as at the balance date represents outstanding superannuation contributions at the end of the period.

1.3.12 Borrowing costs All borrowing costs are expensed as incurred and include interest and other costs incurred by an entity in connection with the borrowing of funds and may include: (a) interest on bank overdrafts and short-term and long-term borrowings; (b) amortisation of discounts or premiums relating to borrowings; (c) amortisation of ancillary costs incurred in connection with the arrangement of borrowings; (d) finance charges in respect of finance leases recognised in accordance with Australian accounting standards; and (e) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

In addition to borrowing costs, other costs which may form part of finance costs include costs arising from the unwinding of the discount on liabilities and provisions.

1.3.13 Fair value measurement The entity deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period. Refer to Note 5 for details surrounding the levelling and fair value assumptions made.

1.3.14 Contingent liabilities and contingent assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.3.15 Acquisition of assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

1.3.16 Taxation The entity is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses and assets are recognised net of GST except:

a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

b) for receivables and payables.

1.3.17 Provisions

The Agency makes a provision for the reasonable care and support for participants provided during the period but not yet notified to the Agency. The provision represents management’s best estimate of the amount based on available evidence in relation to rates of expenditure by participants and is informed by actuarial analysis. Further information is available in Note 9.

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1.3.18 Related party disclosures The term related entity is used to denote other entities which form part of the Australian Government or which the Australian Government controls. Transactions with related entities are disclosed in Notes 3B, 4, 6B, 8A and 15.

The term external entity is used to denote entities which do not form part of the Australian Government or which the Australian Government does not control. This includes State and Territory Governments. Transactions with external entities are disclosed in Notes 3B, 4, 6B and 8A.

The term related party is used to denote any other related parties as per Australian accounting standards as any

person or entity in which a member of the Board of the Agency has a material personal interest. Transactions with related parties are disclosed in Note 15.

Note 2: Events After The Reporting Period

Future Legislative Requirements

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) replaced the Commonwealth Authorities and Companies Act 1997 with effect from 1 July 2014. From that date, the Agency will be reported as a corporate entity under the PGPA Act and the framework for preparation of the financial statements for future years will be amended in line with the PGPA Act requirements. The implementation of the PGPA Act is not expected to have a material change in the content or reporting of the financial statements.

Extension of Scheme Launch to further trial sites

On 1 July 2014 the Scheme was extended to include three more trial sites, being the Australian Capital Territory, the Barkly area of the Northern Territory and the Perth Hills area of Western Australia. These sites join the initial trial sites that have been operating since 1 July 2013 to increase the availability of the Scheme to support more participants, their families and carers.

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 3: Expenses

Note 3A: Employee benefits Wages and salaries Superannuation

Defined contribution plans

Defined benefit plans Leave and other entitlements Separation and redundancies Total employee benefits

Note 3B: Suppliers Goods and services supplied or rendered Travel Consultants and contractors Memorandum of Understanding costs’ Information technology expenses Property operating expenses Other supplier expenses Total goods and services supplied or rendered Services rendered in connection with Related entities External entities Total services rendered Total goods and services supplied or rendered

Other suppliers Operating lease rentals in connection with External entities Minimum lease payments Workers compensation expenses Total other suppliers Total suppliers

2014 $’000

36,282

4,390 1,662 6,278 77 48,689

1,867 19,128 30,484

4,543

2,596

6,160 64,778

30,484 34,294 64,778 64,778

4,410 807 5,217 69,995

“The Agency has in place a Memorandum of Understanding that covers the provision of various administrative and operational support services by the Department of Social Services (formerly the Department of Families,

Housing, Community Services and Indigenous Affairs).

Note 3C: Grants Sector development Total grants

4,515 4,515

The Agency provides a range of grants to the wider disability sector in order to promote greater outcomes for people with a disability, their families and their carers. These grants relate to a range of projects including

disability research, innovation and education. Note 3D: Participant plan expenses

Participant plan expenses Total participant plan expenses

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130,861 130,861

National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

2014 $’000 Note 3E: Depreciation Depreciation Property, plant and equipment 279 Buildings (leasehold improvements) 4,198 Total depreciation 4,477 No amortisation of intangible assets was recorded during the period as the assets are not available for use. Note 3F: Finance costs Unwinding of discount 9 Total finance costs 9 Note 3G: Losses from asset sales Property, plant and equipment Proceeds from sale (52) Carrying value of assets sold 62 Total losses from asset sales 10

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Note 4: Own-Source Income 3 2014 of inputs $’000 20,461 897 21,358 21,358 REVENUE $’000 end Level the Note 4A: Revenue from rendering of services at Rendering of services in connection with Related entities - contributions from Department of Social Services 190,083 using 2 Level inputs $’000 - - - - External entities - contributions from State and Territory Governments 48,674 Total revenue from the rendering of services 238,757 period measurements 1 - - - - Note 4B: Interest inputs $’000 Deposits 2,220 value reporting Level Total interest 2,220 Fair the Note 4C: Other revenue value $’000 20,461 897 21,358 21,358 Contribution by Victorian Government1 4,000 Fair cost. Other 20 Total other revenue 4,020 1 2014 amortised The Victorian Government has contributed an amount to fund the setup costs of the Agency’s head office, in or located in Geelong under an agreement with the Commonwealth Government. liability, inputs). cost or period. Note 4D: Resources received free of charge liabilities the asset and historical Contributions in-kind from Commonwealth, state and territory governments 23,266 value. Total resources received free of charge 23,266 the as fair for (unobservable during at assets such Agency data Note 4E: Revenue from government assets liabilities; and STATEMENTS for value, hierarchy Department of Social Services or measured observable market fair CAC Act body payment item 8,271 value are are prices); Total revenue from Government 8,271 hierarchy performance assets than fair Transition that by that from 1 measurement the observable other in FINANCIAL on identical financial Level period basis. value derived for liabilities basis & Launch a THE fair (i.e. based and within on recurring not a investments OF markets reporting assets are on of levels included indirectly the Scheme recurring of sustainability or that of measured PART for activein (assets) categories following liability determined prices) the Scheme or an the above as at are quoted Insurance analysis prices end are has (unadjusted) between FORMING Measurements (i.e. asset improvements) equipment than assets listed measurements provide and measurements those other directly thefor assets transfers AND Value value tables hierarchy prices Disability measurements (leasehold plant value from measurements no either Inputs TO Fair Fair value Quoted Inputs 1: 2: 3: non-financial fair apart value were value 5: 5A: following fair NationalNOTES Note Note The The Level Level Level Fair Non-financial Buildings Property, Total Total Items fairAll There

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range average) 29.1% 34.1% - used or (depreciation Total 2014 $’000 (10) 25,897 (52) (4,477) 21,358 from Inputs weighted at services loss stated by under accumulated the policy less - Income 2014 $’000 (10) 1,238 (52) (279) 897 repairing cost contribution plant net equipment cost. or in current depreciated replacingof revaluation asset repair historical Property, and to the cost the the be that Comprehensive of costs to with - - lowest recognised replacement replacing taken the deemed 2014 $’000 24,659 (4,198) 20,461 of include, was Leasehold Statement been to accordance it amounts cost cost in the depreciated improvements in have be reference 2014 change to lowest by in otherwise, the assets 1. included taken to replacement fees. is Note significantly is the legal measured liabilities indicated 2014 is and not with and equipment used reference June cost and by assets evidence would 30 of inputs improvements determiningin plant architects accordance in Agency ending Agency measurements and measured of asset. value unless is STATEMENTS are STATEMENTS year Replacement the fair alternatives included costs property, value leasehold assets, of the cost of fair for assets 3 technique performance possible class cost. repairing value value Transition Transition Inputs including of asset for or measuring fair asset. fair of Level valuation measurements FINANCIAL FINANCIAL each value. Valuation The Replacement the assets The replacement asset equipment financial and for and & reasonably 2 fair Launch Launch and value purpose to THE THE to 897 fair reconciliation - plant OF Level value $’000 20,461 the OF 3 proxy valuation for Fair for acquisition Scheme valuations the Scheme Level sustainability used for PART services1 property, suitable PART inputs or of of a between 2 3) 3 3 inputs sale measurements cost Scheme was hierarchy3 as techniques period and Category (Level Level net the Insurance Insurance recurringfor value in on FORMING used FORMING short Level income. technique the fair valuation the amortisation to rates 3 AND assets and AND sale recognised recognised and Given and Disability Disability Level inputs from TO Reconciliation TO Valuation (leasehold plant balance balance sales. loss comprehensive 5B: 5C: losses methods 1.3.8. depreciation The asset

1 NationalNOTES Note Non-financial Buildings improvements) Property, equipment The Note depreciation Changing other The NationalNOTES Note Recurring Opening Total Purchases Proceeds Depreciation Closing

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National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 6: Financial Assets

Note 6A: Cash and cash equivalents Cash on hand or on deposit

Term deposit

Total cash and cash equivalents

Note 6B: Trade and other receivables

Goods and services receivables in connection with Related entities External entities

Total goods and services receivables

Appropriations receivables Revenue from Government receivable Total appropriations receivables

Other receivables Statutory receivables Other Total other receivables Total trade and other receivables

Trade and other receivables expected to be recovered No more than 12 months Total trade and other receivables

Trade and other receivables aged as follows Not overdue Overdue by 0 to 30 days 31 to 60 days 61 to 90 days More than 90 days Total trade and other receivables

2014 $’000

71,990 50,335 122,325

1,684 231 1,915

887

460

847 3,649

3,649 3,649

3,171

91

59 137 191 3,649

No allowance for doubtful accounts has been provided as the amounts receivable are from state and territory

governments. The Agency is of the opinion that all amounts are likely to be fully recoverable.

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Note 7: Non-Financial Assets

Note 7A: Buildings (leasehold improvements) Buildings (leasehold improvements)

Work in progress

Fair value

Accumulated depreciation Total buildings (leasehold improvements)

Total buildings (leasehold improvements) No indicators of impairment were found for leasehold improvements. No buildings are expected to be sold or disposed of within the next 12 months. Note 7B: Property plant and equipment Other property, plant and equipment Fair value

Accumulated depreciation Total property, plant and equipment

No indicators of impairment were found for property, plant and equipment.

No property, plant or equipment is expected to be sold or disposed of within the next 12 months.

2014 $’000

6,714 17,945 (4,198) 20,461

20,461

1,137 240 897

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National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

• • •             a                                                                                                                                                  2014

$’000 Total $’000 25,897 16,967 8,930 (4,477) (62) 21,358 25,796 (4,438) 21,358 date, Note 7D: Intangibles that Computer software On Internally developed - not yet in use 277 Affairs. Total computer software 277 & - - - Total intangibles 277 $’000 1,238 530 708 (279) (62) 897 1,137 (240) 897 plant equipment Indigenous Intangible assets were assessed for recoverable amounts and no indicators of impairment were found. and Property, No intangibles are expected to be sold or disposed of within the next 12 months. Services details.for

to Buildings (leasehold improvements) $’000 - - - 24,659 16,437 8,222 (4,198) - 20,461 24,659 (4,198) 20,461 Community 10Note Refer 2014 Housing, for restructure. Families, of equipment and Agency administrative plant Department an STATEMENTS then of the part property, as performance Transition of from FINANCIAL Agency financial the balances & Launch to independent THE by: OF closing and financially transferred Scheme sustainability PART represented opening impairment 2014 became were Scheme the Insurance of and 2014 June liabilities 2013 Agency FORMING 30 and June of the July depreciation) 1 30 as of AND assets depreciation depreciation 2013, expense of 2013 value value Disability value (net value value TO Reconciliation July July restructuring1 1 book book 7C: 1 On number book purchase Other book book at By From 1 NationalNOTES Note As Gross Accumulated Net Additions Depreciation Disposals Net Net Gross Accumulated

142 | national disability insurance agency | 2014 annual report 143

National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

• • •   -                                                                                                                                                                    2014

$’000 Total $’000 277 277 277 277 277 Note 7F: Other non-financial assets Participant advances1 666 Other prepayments 25 Total other non-financial assets 691 $’000 - - - 277 277 277 277 - 277 Other non-financial assets expected to be recovered No more than 12 months 691 Computer software internally developed Total other non-financial assets 691

No indicators of impairment were found for other non-financial assets.

1 Participant advances represent payments that have been made to self-managed participants in the Scheme in advance of support being provided.

2014 Agency for STATEMENTS intangibles performance Transition of FINANCIAL financial Launch balances & THE by: OF closing Scheme and sustainability PART represented opening impairment 2014 impairment Scheme the Insurance of and 2014 June and 2013 FORMING 30 June of July 1 30 as AND amortisation amortisation developed 2013 value value Disability TO Reconciliation value value value July 1 book book 7E: at book Internally book book NationalNOTES Note As Gross Accumulated Net Additions Net Net Gross Accumulated

144 | national disability insurance agency | 2014 annual report 145

National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 8: Payables

Note 8A: Suppliers Trade creditors

Accruals Total supplier payables

Supplier payables expected to be settled within 12 months Related entities External entities

Total supplier payables

Settlement is usually made within 30 days.

Note 8B: Participant plan payables Participant plan provisions expected to be settled within 12 months

Total participant plan payables

Note 8C: Other payables

Salaries and wages

Superannuation

Lease incentive

Operating leases straight-lining

Other

Total other payables expected to be settled within 12 months

Total other payables expected to be settled No more than 12 months Total other payables expected to be settled within 12 months

146 | national disability insurance agency | 2014 annual report

2014 $’000

11,068 1,272 12,340

7,904 4,436 12,340

1,476 1,476

1,306 218 595 203

34

2,356

2,356 2,356

Note 9: Provisions

Note 9A: Employee provisions Leave

Total employee provisions

Employee provisions expected to be settled No more than 12 months More than 12 months

Total employee provisions

Note 9B: Participant plan provisions Participant plan provisions expected to be settled within 12 months

Total Participant plan provisions

Note 9C: Other provisions Provision for restoration obligations Total other provisions

Other provisions expected to be settled More than 12 months Total other provisions

2014 $’000

6,874 6,874

2,896 3,978 6,874

66,400 66,400

2,186 2,186

2,186 2,186

‘The valuation of the participant plan provision was undertaken as at 30 June 2013 by the Scheme Actuary and

was verified by the Australian Government Actuary.

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National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 10: Restructuring

Department of Social

National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Services 2014 $’000 Assets recognised

Cash 6,295 Trade debtors 1,229 Land & buildings (leasehold improvements) 8,222 Property, plant and equipment 708 Total ts recognised 16,454

Liabilities recognised Trade creditors (6,414) Other payables (211) Employee provisions (1,113) Other provisions (40) Total liabilities recognised (7,778) Net ts/(liabilities) assumed 8,676

On 1 July 2013, the Agency became financially independent from the then Department of Families, Housing, Community Services and Indigenous Affairs. On that date, a number of assets were transferred to the Agency as part of an administrative restructure. The net book value of the assets transferred was treated as a contribution to the Agency.

148 | national disability insurance agency | 2014 annual report

Note 11: Cash Flow Reconciliation

Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement

Cash and cash equivalents as per Cash Flow Statement Statement of Financial Position Discrepancy

Reconciliation of net contribution by services to net cash from operating activities Net contribution by services Revenue received from Government

Adjustments for non-cash items Depreciation Losses from sale of assets

Movements in assets and liabilities

Assets Increase in net receivables Increase in prepayments

Liabilities Increase in employee provisions Increase in other provisions Increase in participant plan provisions Increase in supplier payables Increase in participant plan payables Increase in other payables

Net cash from operating activities

Significant non-cash items

2014 $’000

122,325 122,325

9,707 8,271

4,477 10

(3,649) (691)

6,874 2,186 66,400 12,086 1,476 2,356 109,503

On 1 July 2013, the Agency became financially independent from the then Department of Families, Housing, Community Services and Indigenous Affairs. On that date, a number of assets and liabilities were transferred to the Agency as part of an administrative restructure. The net book value of the assets and liabilities transferred

of $8.676 million was treated as a non-cash contribution to the Agency at that date.

‘Includes non-cash items transferred as part of the administrative restructure detailed in Note 10

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National Disability Insurance Scheme Launch Transition Agency National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 12: Contingent Assets and Liabilities

Note 13: Senior Executive Remuneration Quantifiable Contingencies Note 13A: Senior executive remuneration expense for the reporting period As at 30 June 2014, the Agency had no quantifiable contingencies.

2014 Unquantifiable Contingencies $’000 As at 30 June 2014, the Agency had no unquantifiable contingencies. Short-term employee benefits Salary 2,944 Significant Remote Contingencies Total short-term employee benefits 2,944 As at 30 June 2014, the Agency has no significant remote contingencies. Post-employment benefits The Agency makes a number of decisions, including access and reasonable and necessary support decisions, Superannuation 437 which are subject to an external merits review by the Administrative Appeals Tribunal (AAT). Participants can also Total post-employment benefits 437 lodge complaints via the Human Rights Commission and Ombudsman. As at 30 June 2014, there were 11 current applications to the AAT, 2 applications with the Human Rights Commission and 2 applications with the Other long-term benefits Ombudsman relating to the Agency. It is expected there will be no material financial impact that directly arises Annual leave accrued 59 from these current applications. Long-service leave 45 Total other long-term benefits 104 Total 3,485

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as Total $ 114,794 210,481 246,094 274,530 290,786 412,227 highly for reportable that $ - - - - - - in commenced disclosure headcount for on recently Reportableallowances4 executives based has threshold $ senior 15,588 27,993 30,069 42,860 42,736 48,181 figure Agency relevant the Contributed As the averaged substantive summaries. to superannuation3 an 12B. meet is not period $ payment Note row column); benefits under salary2 99,206 182,489 216,025 231,670 248,050 364,046 Each paid’ and do reporting Reportable individuals’ therefore the on period. ‘bonus and disclosed No. 14 7 3 1 2 1 28 line the benefits); superannuation reporting for during Senior Executives in tax of period amounts the 2014 provision allowances’ disclosed in to reporting executives account the during and the to Agency ‘total Agency the for of out up’ the STATEMENTS senior STATEMENTS addition in part executives entity per the as for remuneration separated ‘grossing to performance Transition senior to paid Transition substantive are cost disclosure to prior employed FINANCIAL received FINANCIAL which financial paid been & who Launch average allowances Launch substantive contributions;amount THE THE paid, the remuneration have is OF to net period. actual OF arrangements) executives bonuses (at Scheme require Scheme remuneration paid theincome amount sustainability following:any PART executives average PART that employees superannuation reporting senior the the benefits the part-time employment senior (less are staff staff Agency Scheme reportable remuneration remuneration1 paid employerfringe Insurance Insurance during includes paid other substantive band. foreign superannuation’ FORMING FORMING payments of highly annual (including band the salary’ allowances’ substantive reportable reportable reports in grossreportablereportableexempt AND AND of $224,999 $254,999 $284,999 $314,999 $434,999 number a)b)c)d) 2013-14. Disability highly no Disability a $195,000 to to to to to table ’contributed in TO Other has TO Average annual annual 13B: remuneration than number This individuals ’Reportable The remuneration ’Reportable 13C: Agency staff The operation, paid NationalNOTES Note Average Average Total less $195,000 $225,000 $255,000 $285,000 $405,000 Total Notes:1. 2. 3. 4. NationalNOTES Note

152 | national disability insurance agency | 2014 annual report 153

National Disability Insurance Scheme Launch Transition Agency National Disability Insurance Scheme Launch Transition Agency

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 14: Directors Remuneration Note 15: Related Party Disclosures Note 14A: Non-executive directors remuneration Related entities 2014 Transactions with related entities are disclosed in Notes 3B, 4A, 4E, 6B and 8A. No.

Other related parties

$0 to $29,999 - The Agency is governed by an independent Board of Directors. There were no loans to Directors or

$30,000 to $59,999 1 Director-related entities during the period.

$60,000 to $89,999 7

$120,000 to $149,999 1 John Walsh was appointed as a Director of the Agency on 1 July 2013. He was a partner at professional services Total number of non-executive directors 9 firm PricewaterhouseCoopers Australia at that time and remained in the partnership until 30 September 2013.

Since resigning as partner, John Walsh has continued to provide advisory services to Pricewaterhouse Coopers on a part-time basis. During the 2013-14 financial year, the Agency received actuarial and other services from PricewaterhouseCoopers Australia with a total value of $794,000. John Walsh did not take part in any of the management decisions to engage the services of PricewaterhouseCoopers Australia.

On 4 November 2013, Ms Sarah Johnson, a former employee of PricewaterhouseCoopers Australia, was appointed by the Board to the position of Scheme Actuary for a period of 3 years. John Walsh abstained from voting on this decision.

The total remuneration received or due and receivable by Board members of the Agency for 2014 is $724,076.

There were no other related party transactions during the period.

Several Directors of the Agency play an active role in the disability sector and may have relationships with registered and/or potential service providers. Participants exercise choice and control in selecting service providers for the funded supports in their individualised plans and consequently payments made by the Agency to service providers for participant supports are not considered to be related party transactions.

Participants who elect to have their plan managed by the Agency must select a registered service provider to deliver the supports in their plan. To become a registered service provider an organisation must submit an application to the Agency which is assessed against the criteria specified in Part 3 of National Disability Insurance Scheme (Registered Providers of Supports) Rules 2013. Directors of the Agency are not involved in decisions to accept or reject applications to register as a service provider.

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National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 16: Remuneration of Auditors

Fair value of services received Financial statement audit services

The ANAO has not provided any other services during the period.

156 | national disability insurance agency | 2014 annual report

2014 $’000

390 390

Note 17: Financial Instruments

Note 17A: Categories of financial instruments Financial assets

Loans and receivables

Cash at bank

Term deposits

Receivable for goods and services Total

Carrying amount of financial assets

Financial liabilities

At amortised cost Supplier payables Accrued expenses Participant plan payables Other payables

Total

Carrying amount of financial liabilities

No financial instruments have transferred between categories during the period.

2014 $’000

71,990 50,335 1,915 124,240

124,240

11,068 1,272 1,476 2,356

16,172

16,172

The carrying amount of the Agency’s financial instruments shown above is a reasonable approximation of their

fair value. Note 17B: Net income and expense from financial assets Loans and receivables Interest revenue Net gain loans and receivables

Net gain from financial assets

There were no gains or losses on financial liabilities during the period.

2,220 2,220

2,220

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National Disability Insurance Scheme Launch Transition Agency National Disability Insurance Scheme Launch Transition Agency

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 17C: Credit risk Note 17D: Liquidity risk

The Agency manages liquidity risk by continuously monitoring the forecast and actual cash flows associated with financial assets and financial liabilities. All financial liabilities shown in the statement of financial position as The Agency’s primary credit risk exposure arises from the Agency’s business interactions on credit with trade at 30 June 2014 are expected to fall due within 12 months. debtors. The credit quality of other customers is risk assessed by management taking into account their financial position, past experience and other factors and compliance with the Agency’s credit terms is regularly

monitored by management. Note 17E: Market risk The Agency assessed the risk of the default on payment and has not created an impairment allowance as all The Agency’s primary market risk exposure arises from changes in the interest rates associated with funds held amounts are regarded as recoverable. with banks and financial institutions. The Agency held no collateral to mitigate against credit risk. The weighted average interest rate received on cash at bank funds during the 2013/2014 financial year was 2.65%. Based on recent trends and the current economic environment, management estimates that the The following table illustrates the Agency’s gross exposure to credit risk, excluding any collateral or credit maximum perceived exposure to changes in the interest rates in the next 12 months is approximately +/- 0.6%. enhancements. The weighted average interest rate received on investments during the 2013/2014 financial year was 3.51%. 2014 Based on recent trends and the current economic environment, management estimates that the maximum $’000 perceived exposure to changes in the interest rates in the next 12 months is approximately +/- 0.6%. Receivables 1,915 Total 1,915 Sensitivity analysis of the risk that the entity is exposed to for 2014 Effect on Risk variable Changein Profit and Credit quality of financial instruments not past due or individually determined as impaired risk Not past variable loss Equity due nor % % $’000 $’000 impaired Past due Interest rate risk - cash at bank 2.65 0.6 400 (400) 2014 2014 Interest rate risk - cash at bank 2.65 -0.6 (400) 400 $’000 $’000 Interest rate risk - investments 3.51 0.6 75 (75) 2 Receivables 1,437 478 Interest rate risk - investments 3.51 -0.6 (75) 75 S Total 1,437 478 E a 2 Ageing of financial assets that were past due and not impaired for 2014 2014 8 0 to 30 31 to 60 61 to 90 90+ $’000 £ days days days days Total Note 17F: Financial assets reconciliation a $’000 $’000 $’000 $’000 $’000 Notes i= Receivables 91 59 137 191 478 5 Total 91 59 137 191 478 Total financial assets as per statement of financial position 125,974 r= Less: non-financial instrument components $ Revenue from Government receivable (887) a Other receivables (847) Ee Total non-financial instrument components (1,734) £ Total financial assets as per financial instruments note 17A 124,240 n

158 | national disability insurance agency | 2014 annual report 159

National Disability Insurance Scheme Launch Transition Agency National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 18: Compensation and Debt Relief Note 19: Reporting of Outcomes

2014 $ Outcome 1 Total Compensation and Debt Relief 2014 2014 No ’Acts of Grace’ payments were made during the reporting period. : $’000 $’000 Departmental Expenses 258,556 258,556 No waivers of amounts owing to the National Disability Insurance Agency were made pursuant Own-source income (268,263) (268,263) to section 190 of the National Disability Insurance Scheme Act 2013. : Net contribution of outcome delivery (9,707) (9,707) No payments were provided under the Compensation for Detriment caused by Defective The Agency is structured to meet a single outcome of implementing a National Disability Insurance Scheme that Administration (CDDA) Scheme during the reporting period. : provides, as per Outcome 1: Individual control and choice in the delivery of reasonable and necessary care and supports to improve the No ex-gratia payments were provided for during the reporting period. - independence, social and economic participation of eligible people with disability, their families and carers, and

associated referral services and activities.

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period. :

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National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

National Disability Insurance Scheme Launch Transition Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 20: Scheme Operations

Establishment of the Scheme and funding arrangements

As part of the establishment of the Scheme, an Intergovernmental Agreement was signed between the Commonwealth Government and the governments of each state and territory in Australia. The Scheme commenced operation on 1 July 2013 in 4 trial sites.

The Agency is funded through a combination of cash contributions and in-kind contributions from the Commonwealth, state and territory governments. A series of Bilateral agreements was signed between the Commonwealth government and each of the 4 state governments that were hosting a trial site outlining the amount and type of contributions that each of the governments would make towards the funding of the Scheme during the 2013-14 financial year.

As disclosed in Note 1, cash contributions from Commonwealth government entities or state governments are recognised by the Agency as revenue when they are received. The amounts of cash contributions are shown in Note 4A.

In-kind contributions occur when the Commonwealth or State government provides services on behalf of the Agency that the Agency would otherwise be required to fund under the scheme. The amounts of income from in-kind contributions are shown in Note 4D.

The amount of in-kind contributions and participant plan expenses recognised in these financial statements include the Agency’s best estimate of services provided to participants up to and including 30 June 2014. This estimate is necessary because of the time lag between the date that services are provided to participants and the date that the Agency is notified that the services were provided (through a claims process).

The Intergovernmental agreement provides a framework under which the Commonwealth and state and territory governments will share the funding of participant plan expenses incurred by the Agency. During the 2014-15 financial year, a formal reconciliation of participant plan expenses will be undertaken based on the actual claims submitted that relate to the period ended 30 June 2014. This process may result in state or territory governments increasing or decreasing their future funding commitments under the Scheme. Any adjustments necessary as a result of this process will be recorded by the Agency in the 2014-15 financial year.

Under the bilateral agreements, each of the state and territory governments has committed to providing additional support to the Scheme over the following 2 years. The total funding that has been committed by the commonwealth, state and territory governments under the agreements in relation to the 2014-15 and 2015-16 financial years is shown in the Schedule of commitments as a commitment receivable. At the 30 June, these commitments totalled $850,585,000.

Participant Care

One of the Agency’s main functions is meeting the cost of reasonable and necessary supports for participants in the Scheme. Once a person is approved as a participant in the Scheme, a Statement of participant supports is developed outlining the supports that will be funded by the agency. This statement is reviewed regularly as part of the review of the participant’s plan, generally at least every 12 months.

Once a participant plan is approved, the participant can access disability support services from a range of registered service providers, up to the funding limit of the plan. As services are provided, either the participant or the registered service provider is able to claim the cost of that care from the Agency.

The Agency records participant care expenses as the reasonable and necessary supports are provided. At the end of a reporting period, the Agency makes an estimate of the amount of supports that have been provided during the period but not yet notified to the Agency and records this amount as a participant plan in Note 9. No liability is recorded for any participant care to be provided in future reporting periods as the relevant recognition criteria are not met.

Once a statement of participant supports is approved, the Agency is committed to the funding of the items in that statement. At the end of a reporting period, any amounts that have been approved as part of a participant plan but have not yet been recognised as a participant plan expense are included as a participant plan commitment payable as part of the Schedule of commitments. At the 30 June, these commitments totalled $154,502,000.

162 | national disability insurance agency | 2014 annual report

If a claim for participant care is to be funded by a cash contribution, the Agency will make a cash payment to either the participant or the registered service provider in accordance with the Scheme rules. If a claim for participant care is to be funded by an in-kind contribution, the Agency will record the in-kind contribution as income equal to the amount the state government has paid under its funding arrangements with the provider (Note 4D) and an equivalent amount as participant plan expenses.

End of Financial Statements

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Shortened forms

AAT – Administrative Appeals Tribunal ANAO – Australian National Audit Office APS – Australian Public Service APSC – Australian Public Service Commission ARC – Audit and Risk Committee CAC – Commonwealth Authorities and Companies CALD – culturally and linguistically diverse CEO – Chief Executive Officer CFO – Chief Financial Officer CICD – community inclusion and capacity development COAG – Council of Australian Governments CPR – Commonwealth Procurement Rules CTP – compulsory third party DDA – Disability Discrimination Act 1992 DSS – Department of Social Services EMG – Executive management group FaHCSIA – Department of Families, Housing, Community Services and Indigenous Affairs ICT – information and communications technology IAC – Independent Advisory Council IFA – individual flexibility arrangements IPS –Information Publication Scheme KPI – key performance indicators LAC – Local Area Coordinator MoU – Memorandum of Understanding NDIA – National Disability Insurance Agency NDIS – National Disability Insurance Scheme NDS – National Disability Services NPY (Women’s Council) – Ngaanyatjarra, Pitjantjatjara and Yankunytjatjara PGPA – public governance performance and accountability SDF – Sector Development Fund SES – Senior Executive Service TAFE – technical and further education TAP – Talking About Performance WHODAS - World Health Organisation Disability Assessment Schedule WHS – work health and safety

164 | national disability insurance agency | 2014 annual report 165

Glossary

Actuarial calculations – the calculation of risks and probabilities Formal supports – see reasonable and necessary supports Actuarial decision making – making decisions based on statistical and objective evidence Full scheme – also known as ‘full rollout’, the dates by which the scheme will be available to Approved plan – A participant’s plan that includes the participant’s statement of goals and all eligible residents, specifically, in the Australian Capital Territory by July 2016, in New South aspirations and the supports required by the participant to attain their goals – informal, Wales and South Australia by July 2018, and in Tasmania, Victoria, Queensland and the Northern mainstream and NDIA-funded as approved by the CEO Territory by July 2019

Carer – someone who provides personal care, support and assistance to a person with disability Functional impact – a description of the nature and extent of a person’s disability and how it and who is not contracted as a paid or voluntary worker affects the things they need to do and the way they do them

Co-design – a design process which empowers, encourages, and guides users to develop solutions Funded supports – see reasonable and necessary supports for themselves Funding envelope – the NDIA funding envelope refers to the monies contributed by state and Committed support – funds included for reasonable and necessary supports for participants in Commonwealth governments for the operational and participant costs of the NDIS approved plans Individual plan – see participant’s plan Community engagement – a term used to describe the broad range of interactions between people Informal supports – those informal arrangements that are part and parcel of family life or natural connections with friends and community services Community services – activities and services such as social, study, sporting or other interests, available from local non-government groups and government entities Insurance approach – sharing the costs of disability services and supports across the community

Community-based service provider – non-government service providers with links to local Insurance culture – an organisational culture where staff, participants and stakeholders are communities, frequently including community members in governance structures cognisant of, and work is aligned to, insurance principles

Diversity groups – sociological categories in a demographic. Those of particular relevance to the Insurance excellence – a scheme which leverages best practice from insurance schemes in NDIS in the Australian community include Indigenous Australians, people with disability, women, Australia and internationally, and leverages all contemporary thinking on supporting people with and people from non-English speaking backgrounds disability

Early intervention – providing support early in a child’s life or post-onset of disability to reduce the Insurance model – where the future costs of the Scheme are projected, based on actuarial effects of disability and to improve functional capacity modelling; the impact on these long-term costs is considered in the justification for current ‘reasonable and necessary’ decisions, and outcomes for participants are monitored and actions Efficient price – a price determined by the NDIA as the maximum amount to be included for put in place to improve those outcomes certain supports in a participant’s plan. This price is built up from the cost of wages, on-costs and organisational overheads and includes a margin for profit or re-investment Insurance principle – placing emphasis on making up-front investments that reduce participants’ call in the scheme into the future Eligibility requirements – also known as ‘access requirements’, are the criteria a person must meet to become a participant in the NDIS during the launch period of the Scheme (1 July 2013 to 30 Internal risk management culture – a holistic view of risk management and compliance which June 2016) recognises that a focus on processes and controls is not sufficient to drive effective behaviour and that successful risk management depends upon developing an understanding of the behaviours Equivalence eligibility – the mechanism by which the NDIA recognises that some people with and decisions that have the greatest effect on positive results, and analysing what influences disability who are participating in existing state and Commonwealth disability programs with those behaviours to inform continuous organisational improvement eligibility criteria matching that of the NDIS are therefore eligible for support through the NDIS Lived experience of disability – either personally living with disability or having a close relationship Evidence base – the evidentiary base for decision making by NDIA personnel, including whether a with a person with disability (for example, a family member or partner) person meets the access criteria and is eligible for funding for reasonable and necessary supports, as well as the factual information compiled by the NDIA from its experience in trial sites, data Longitudinal analysis – repeated observations of the same variables over long periods of time collection and independent research

166 | national disability insurance agency | 2014 annual report 167

Glossary

Mainstream services – government systems providing services to the Australian population, for Prudential insurance governance cycle – the cyclical process of regularly reviewing business example, health, mental health, education, justice, housing, child protection and employment processes, policies, systems and funding requirements based on the experiences of the Scheme to services date, and the analysis of future Scheme risks

Outcome and programs framework – an Australian Government framework that enables sound Reasonable Adjustment Policy – the policy which supports NDIA employees and their managers performance reporting to parliament. Outcomes are the results, impacts or consequences of to make reasonable adjustments to the role and the work environment to assist employees to actions by Australian Government entities affecting the Australian community. perform their role regardless of disability

Outcomes framework – the NDIA’s mechanism for measuring success for people with disability in Reasonable and necessary supports – the supports that are funded under the NDIS Act. The NDIA areas like choice and control, social inclusion, education, employment, health and housing publishes operational guidelines to assist decisions on what is to be funded as a reasonable and necessary support. Package costs – the cost to the NDIS of providing funding and support to an individual participant Package costs, average annualised – the average cost to the NDIS of providing funding and Reference packages – a benchmark amount of support determined according to different support to each participant in a particular year characteristics of the population of NDIS participants such as age, health condition and ‘severity’ of disability. Reference packages will be used to monitor experience against the benchmarks. Participant – a person who is assessed as meeting the NDIS eligibility/access criteria Registered provider – a disability support provider that has met the NDIS requirements for Participant claims – claims lodged by participants for payment for delivery of supports provided in qualifications, approvals, experience and capacity for the approved supports and the quality line with their NDIS participant’s plan standards of the jurisdiction in which they operate

Participant outcomes – a way of measuring the aggregation of whether or not participants’ goals Result-area program – see Outcome and programs framework are achieved combined with whether the Agency is meeting its objectives Scheme start-up – all of the activities associated with getting the NDIA up and running for the Participant’s Plan – an approved plan consisting of a participant’s statement of goals and launch of the Scheme on 1 July 2013. aspirations and the reasonable and necessary supports approved by the CEO Self-management – participants receive all or part of their funding and pay directly for reasonable People with disability – a person who experiences any or all of the following: impairments and necessary supports as required (abnormalities or changes in body function or structure); activity limitations (difficulties in carrying out usual age-appropriate activities); participation restrictions (problems an individual may Separation rate – the measure of people choosing to leave employment in the NDIA experience engaging in community, social and family life) Support package – the term used by the NDIA to describe the funding available for the supports Person-centred approach – places the person with disability at the centre of decision making in available to an individual participant terms of their own care needs Supports – assistance that helps a participant to reach their goals, objectives and aspirations, and Person-centred data – the focus of data and information collected is centred around an individual, to undertake activities to enable their social and economic participation allowing holistic review and analysis of a person’s experience with the Scheme Tier 2 – the term used by the NDIA to describe the process of supporting those people not Planning process – the process by which the NDIA helps a participant to plan for the assistance requiring formal supports. Tier 2 will ensure that such people are well supported by community they need from the NDIS to attain their goals and mainstream services and will be in place by 2015-16.

Planning sessions – also known as a planning conversation, a series of sessions attended by Total projected cost – the estimated long-term, costs of the Scheme, based on actuarial risk the NDIA participant, their family or carer and an NDIA Planner to work out a plan for providing modelling of the Scheme’s to-date experience funding and support Trial phase – the first three years of the NDIS Planning workbooks – provided to participants to help them identify and record their needs, goals and current supports during the planning process Trial sites – the NDIA sites at which different operating models for providing services to eligible people with disability are being trialled under the Scheme Pre-planning sessions – conducted by the Agency to help prepare new participants, their families and carers to think about what they want in their plan before embarking on the planning process

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Index

2013–16 Strategic Plan, 32-3, 38, 84 employment arrangements, 97 NDIA Board, iv, xi, 33, 72-9 self-management, 30, 33 A ethical standards, 95 indemnities and insurance, 79 Service Charter, 50 access criteria. See eligibility. evidence base, 57, 61 members, 74-9 service providers, iii, iv, xiii, 23, 28, 33, 39, 48, 54, 60-1, Administrative Appeals Tribunal, 48-9 Executive Management Group, 84 NDIS Rules, 30, 70, 72 65-7, 77, 87, 110-11, 126, 128, 155, 162 advertising, 103 external scrutiny, 48 O SES remuneration, 97 aids and equipment, 56, 61 F operating models, 16, 34, 51, 60 social and economic participation, ii, 15-16, 19, 24, 38, 52, annual financial statements, 39, 114-163 families, i, x-xi, 16, 19, 24, 38, 50, 54 outcomes framework, 33-4, 52, 57, 66 55 annual financial sustainability reports, 25, 63, 67, 106-11 formal support, xi, 34, 50, 52, 54, 56, 66 P staff, See also, workforce approved plans, 39, 42-62, 108 fraud control, 65 package costs, iv, 22, 59, 108-9 absence rate, 96 Assurance, Audit and Risk Committee, 84 funding model, 50, 54 participants, iii, iv, xiii, 15-6, 19, 23-5, 33-4, 38-45, 50-3, engagement, 99 Audit and Risk Committee, 39, 72 G 55-7, 60-2, 66-7, 106-11, 127, 133, 155, 162 learning and development, 96, 98 Australian Human Rights Commission, 48, 150 Geelong, iv, xii, 29, 39, 41, 57, 98, 100, 136 goals, 52, 55, 60 people strategy, 99 Australian Network on Disability, 90 general managers, 86-7 satisfaction, iv, 22, 50 performance management, 99 Australian Public Service, iv, xii, 29, 89, 90-95, 96, 99, 160 governance framework, 63, 70, 84, 99 People and Culture Committee, 84, 96 recruitment, 96 C I planners, 29, 34, 47, 50-2, 63, 66, 102 retention, 96, 54 capacity building ICT. See technology planning process, 19, 22, 50-2 separation rates, 96, 29 community, 54, 61 Independent Advisory Council, 15, 33, 52, 66, 70, 80 pre-planning sessions, 50, 52 Support(s) individual, 52 Indigenous people, 34, 46, 51-2, 88, 90 pricing, funded, xi, 20, 34, 41, 44-5, 50, 66 carers, x, xi, 16, 19, 23, 38, 50, 52, 54, 80 Information Publication Scheme, 49 efficient price, 23, 54 informal, 19, 50, 66 Change Management Committee, 84 insurance transition price, 23 mainstream, xi, 16, 24, 28, 34, 50, 52, 56, 66 Chief Executive Officer, xii-xiii, 86, 97, 103 capability, 25 procurement, 84, 103 Sustainability Committee, 72, 78 Chief Financial Officer, 86 culture, 25, 63, 67 programmes, iv, 23, 36-40, 50, 52, 54-5, 61-3, 90, 98, 100, T COAG Disability Reform Council, 63, 70-2 insurance-based model, 25, 60 103 technology, iii, 23, 60, 84, 90, 134 Commonwealth Ombudsman, 48, 150 insurance principles, ii, xii, 15-6, 24-5, 52, 66-7 Progress report on the implementation and administration assistive, 23, 90 community awareness, 54, 57, 61, 126 internal audit, 72, 103 of the National Disability Insurance Scheme, 71 emerging, iii community engagement, xi, 19, 50, 54, 57, 60 J Q information and communications, 60-1, 66-7, 103, 111 Community Inclusion and Capacity Development fund, 55 Joint Standing Committee, xi, 48, 60, 70-1 quarterly reports, 25, 61-3, 67 transition to full scheme, iv, 48, 59, 71, 83 consultancies, 102 K R trial sites, iv, 16-7, 19, 22-3, 28-9, 34, 38, 40-5, 48, 51, contracts, 102 key performance indicators, 38, 50, 52, 61, 67 Reasonable Adjustment Policy, 90 55-7, 61-3, 102 Corporate Committee, 84 L reasonable and necessary support, iv, 15, 19, 34, 40, 50, Barkly, iv, 16-7, 19, 34, 51, 95 costs lifetime cost estimator, 34, 66 62, 106, 110-11, 150, 162 Barwon, iv, 16-7, 19, 33, 40, 55, 83, 87, 95 drivers, 63, 66, 107 Local Area Coordinators, xi, 16, 26, 51-2, 54-5, 61, 90, 102 recruitment, 54, 90, 96, 100, 102 Hunter, iv, 16-7, 19, 23, 31, 33, 35, 40, 55, 83, 95 long-term, 24, 62, 66-7 M reference packages, 57 managers, 88-89 short-term, 62, 66-7 major achievements, 19, 40, 54, 56, 59-60, 62, 64 reviews Perth Hills, iv, 16-7, 34, 51 culturally and linguistically diverse people, 34, 51, 80 market action plan, 60-1 Boston Consulting Group, iv, 59 South Australia, iv, 16-7, 19, 20, 40, 42, 46, 55 Customer and Performance Committee, 84 Market Design Strategy, 54 Capability review, iv, 59 Tasmania, iv, 16-7, 23, 27, 40, 55 D market development, 23, 52 KPMG review, iv, 59 W data, xii, 25, 52, 57, 61, 63, 65, 67, 96, 107 Mental health, 30, 54, 56, 66 Operational review, iv, 50, 59, 63 webinars, 57 declared personal interests, 74-8 N risk management, iv, xi, xii, 64-5, 72, 86, 102 Work Health and Safety Act 2011, 100-1 Department of Social Security, 34, 54, 99, 100, 103 National Disability Insurance Scheme Act 2013, 15, 32-3, rural and remote areas, iii, 80, 91 workforce, iv, xi, 29, 34, 60, 90, 96, 111 Disability Discrimination Act 1992, iv, 29 48, 70-2, 86, 98 S workplace, iv, 29, 69, 90, 97, 100 disability sector, xiii, 23, 33-4, 38-9, 54-7, 60-1 NDIS principles, 19, 31, 46, 56 Scheme Actuary, xii, 25,52, 61-3, 66-7, 72, 83, 87, 102, 155 diversity, i, 29, 80, 90 National Disability Services, 23, 54, 61, 75 Scheme design, xi, xiii, 28, 56, 82, 87, 88 E National Disability Strategy, 24, 56 Scheme performance statement, 39 early intervention, 15, 40, 50, 106 National Office, iv, 28-9, 30, 39, 57, 90, 100 Scheme sustainability, xii,24-5, 34, 52, 56-7, 63-4, 66-7, ecological and sustainable measures, 102 NDIA Quality Action Plan, 61 72, 87, 104 eligibility, iv, 22, 50 NDIA website, 50, 57, 60-1, 63 Sector Development Fund, iv, 39, 54, 60

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Appendix: List of requirements

Description Requirement Page Description Requirement Page Letter of transmittal Mandatory vi Contribution of risk management in achieving objectives Suggested iv, x, 14-35, Table of contents Mandatory viii 59, 72 Index Mandatory 170 Performance against service charter customer service standards, complaints If applicable, 50 data, and the department’s response to complaints mandatory Glossary Mandatory 166 Discussion and analysis of the department’s financial performance Mandatory 36-67 Contact officer(s) Mandatory 175 Discussion of any significant changes in financial results from the prior year, from Mandatory NA Internet home page address and Internet address for report Mandatory 175 budget or anticipated to have a significant impact on future operations. Review by Secretary Agency resource statement and summary resource tables by outcomes Mandatory NA Review by departmental secretary Mandatory xii Management and Accountability Summary of significant issues and developments Suggested 14-35 Corporate Governance Overview of department’s performance and financial results Suggested 36-67 Agency heads are required to certify that their agency complies with the Mandatory 64-5 Outlook for following year Suggested 34, 51, 60, 66 ‘Commonwealth Fraud Control Guidelines’ Significant issues and developments – portfolio Portfolio NA Statement of the main corporate governance practices in place Mandatory 70-1 departments – suggested Names of the senior executive and their responsibilities Mandatory 86-7 Agency Overview Senior management committees and their roles Suggested 84 Role and functions Mandatory 14-35, 70-89 Corporate and operational plans and associated performance reporting and Suggested 36-67 review Organisational structure Mandatory 82 Internal audit arrangements including approach adopted to identifying areas of Suggested 103 Outcome and programme structure Mandatory 36-67 significant financial or operational risk and arrangements to manage those risks Where outcome and programme structures differ from PB Statements/ Mandatory NA Policy and practices on the establishment and maintenance of appropriate Suggested 95 PAES or other portfolio statements accompanying any other additional ethical standards appropriation bills (other portfolio statements), details of variation and reasons for change How nature and amount of remuneration for SES officers is determined Suggested 97 Portfolio structure Portfolio NA Significant developments in external scrutiny Mandatory 48-9 departments Judicial decisions and decisions of administrative tribunals and by the Australian Mandatory 48 - mandatory Information Commissioner Report on Performance Reports by the Auditor-General, a Parliamentary Committee. the Commonwealth Mandatory 59 Review of performance during the year in relation to programmes and Mandatory 36-67 Ombudsman or an agency capability review contribution to outcomes Management of Human Resources Actual performance in relation to deliverables and KPIs set out in PB Mandatory 52, 61, 67 Assessment of effectiveness in managing and developing human resources to Mandatory 29, 82-95 Statements/PAES or other portfolio statements achieve departmental objectives Where performance targets differ from the PBS/PAES, Mandatory NA Workforce planning, staff retention and turnover Suggested 96-9 details of both former and new targets, and reasons for the change Impact and features of enterprise or collective agreements, individual flexibility Suggested 97 Narrative discussion and analysis of performance Mandatory iv,14-67 arrangements (IFAs), determinations, common law contracts and Australian Trend information Mandatory NA Workplace Agreements (AWAs) Significant changes in nature of principal functions/services Suggested NA Training and development undertaken and its impact Suggested 98 Performance of purchaser/provider arrangements If applicable, 103 Work health and safety performance Suggested 100 suggested Productivity gains Suggested NA Factors, events or trends influencing departmental performance Suggested 14-103 Statistics on staffing Mandatory 91-5

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Appendix: List of requirements

Description Requirement Page Enterprise or collective agreements, IFAs, determinations, common law contracts Mandatory 97 and AWAs Performance pay Mandatory 99 Assessment of effectiveness of assets management If applicable, NA mandatory Assessment of purchasing against core policies and principles Mandatory 103 The annual report must include a summary statement detailing the number of new Mandatory 102 consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website. Absence of provisions in contracts allowing access by the Auditor-General Mandatory 102 Contracts exempted from publication in AusTender Mandatory 102 Financial Statements Mandatory 114 Other Mandatory Information Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011) Mandatory 100 Advertising and Market Research (Section 311A of the Commonwealth Electoral Act Mandatory 103 1918) and statement on advertising campaigns Ecologically sustainable development and environmental performance (Section Mandatory 102 516A of the Environment Protection and Biodiversity Conservation Act 1999) Compliance with the agency’s obligations under the Carer Recognition Act 2010 If applicable, NA mandatory CONTACT For more information about this report Grant programmes Mandatory 103 please contact: Disability reporting – explicit and transparent reference to agency level information Mandatory 29, 90 available through other reporting mechanisms General Manager, Governance Information Publication Scheme statement Mandatory 48 National Disability Insurance Agency Correction of material errors in previous annual report If applicable, NA mandatory GPO Box 700 Canberra ACT 2601 Agency Resource Statements and Resources for Outcomes Mandatory NA Australia List of Requirements Mandatory 172-4 Telephone +61 3 5273 1629 This report can be accessed online at www.ndis.gov.au

Designed by Carla Zapel Photography by Belinda Mason

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. National

ability

Agency