NDIS Compliance for Plan Managers: Ensuring Financial and Regulatory Accuracy

The National Disability Insurance Scheme (NDIS) offers participants different ways to manage their funding, one of which is through an NDIS Plan Manager. A Plan Manager acts as a financial intermediary, handling participant budgets, paying invoices, and ensuring that all spending aligns with NDIS guidelines. While this role provides flexibility for participants, it also comes with strict NDIS compliance obligations.

Failure to comply with NDIS regulations can result in financial mismanagement, legal repercussions, and potential deregistration as an NDIS provider. For Plan Managers, maintaining accurate records, following financial protocols, and adhering to NDIS payment rules is essential to ensure transparency, accountability, and participant trust.

This article explores the compliance requirements for NDIS Plan Managers, the key records they must keep, and the forms required to ensure full regulatory compliance.

Understanding NDIS Compliance for Plan Managers

As an NDIS-registered Plan Manager, your primary responsibility is to manage participant funding while ensuring that all transactions comply with NDIS Pricing Arrangements and Payment Rules. Unlike agency-managed or self-managed plans, where participants or the NDIA control the funds, Plan Managers act as a third-party service responsible for:

• Processing provider invoices and ensuring payments align with the participant’s NDIS budget.

• Tracking funding allocation to prevent overspending or misuse of funds.

• Providing financial reports to participants, ensuring they understand their remaining budget.

• Ensuring compliance with NDIS financial regulations, including accurate record-keeping and audit readiness.

To remain compliant, NDIS Plan Managers must meet the standards set by the NDIS Quality and Safeguards Commission, maintain detailed financial records, and adhere to NDIS audit requirements.

Record-Keeping Requirements for NDIS Plan Managers

Compliance relies heavily on maintaining accurate, detailed, and up-to-date financial records. Every financial transaction processed must be documented to ensure NDIS funding transparency. The key records that Plan Managers must keep include:

1. Financial Statements and Transaction Records

NDIS Plan Managers are responsible for managing and tracking participant budgets, ensuring that spending aligns with their NDIS plan. This includes:

• Invoices processed for payment (including provider details, service descriptions, and support item codes).

• Monthly statements outlining participant spending and remaining budget.

• Proof of payments made to NDIS service providers.

• Records of declined claims and justifications for any disputed payments.

Each transaction must be correctly categorised under the NDIS support categories, using the appropriate support item codes to ensure accuracy.

2. NDIS Budget and Expenditure Tracking

Plan Managers must provide regular budget reports to participants, ensuring they understand their NDIS funding allocations and spending progress. These records should include:

• Funding breakdowns per category (e.g., Core Supports, Capacity Building, Capital Supports).

• Monthly expenditure summaries, showing used and remaining funds.

• Alerts on potential over or under-spending, allowing participants to adjust services accordingly.

These reports not only support participant choice and control but also ensure that spending remains within NDIS guidelines.

3. Provider Invoices and Payment Approvals

Every invoice processed by a Plan Manager must be:

• Verified for accuracy, ensuring that services claimed were delivered and align with the participant’s plan.

• Checked against NDIS pricing limits, preventing overcharging.

• Stored securely for audit purposes, with a clear record of payments made.

Invoices that do not meet NDIS criteria should be flagged, and participants must be informed if a claim is rejected due to non-compliance.

4. Consent Forms and Privacy Documentation

Since Plan Managers handle sensitive participant financial information, they must ensure compliance with privacy laws. Documents required include:

• Participant consent forms, authorising the Plan Manager to manage their funds.

• Privacy agreements, outlining how participant information is stored and used.

• Data security policies, ensuring all financial records are stored in compliance with NDIS data protection guidelines.

Plan Managers should implement secure financial management software that protects participant data and prevents unauthorised access to financial records.

5. Dispute Resolution and Compliance Audits

Plan Managers must have a dispute resolution process in place to handle:

• Incorrect invoices or overcharges.

• Payment delays and issues with provider transactions.

• Participant concerns regarding budget management.

Additionally, Plan Managers are subject to NDIS audits, requiring them to produce financial reports, transaction logs, and compliance documentation upon request.

Forms and Documentation Required for NDIS Compliance

To ensure full NDIS compliance, Plan Managers must regularly use and maintain key financial and administrative forms. These include:

• NDIS Plan Management Agreement – A signed agreement outlining the terms of plan management.

• Participant Consent Form – Authorisation for the Plan Manager to process payments on the participant’s behalf.

• Financial Tracking Report – A document detailing all participant expenditures.

• Invoice Processing Form – A structured template ensuring invoices meet NDIS funding criteria.

• Budget Alert Notification – A report used to inform participants of potential overspending.

• Dispute Resolution Record – A log of disputes related to payments or claims, including resolutions.

These documents should be securely stored and readily available for NDIS audits or participant review.

Ensuring Full Compliance as an NDIS Plan Manager

To remain compliant with NDIS regulations, Plan Managers must adopt best practices that ensure financial accuracy and participant transparency.

1. Stay Updated with NDIS Pricing and Policy Changes

Since NDIS pricing arrangements and funding rules are updated regularly, Plan Managers should:

• Subscribe to NDIS updates from the NDIS Commission website.

• Attend NDIS Plan Manager training and workshops.

• Join NDIS provider forums to stay informed of industry best practices.

2. Implement Digital Compliance Tools

Using NDIS-compliant financial management software can help Plan Managers:

• Automate budget tracking and expenditure reporting.

• Ensure invoice verification aligns with NDIS pricing rules.

• Store financial records securely for audit readiness.

3. Maintain Transparency with Participants

Plan Managers should regularly engage with participants to:

• Provide monthly financial summaries.

• Educate them on NDIS funding categories and spending limitations.

• Ensure they have full visibility over their budgets and transactions.

4. Prepare for NDIS Audits

To avoid compliance issues during NDIS audits, Plan Managers should:

• Conduct internal compliance checks regularly.

• Ensure all records are up to date and stored securely.

• Be ready to provide financial documentation and participant spending reports when required.

Ensuring NDIS compliance as a Plan Manager requires careful financial oversight, accurate record-keeping, and strict adherence to NDIS pricing and funding guidelines. By maintaining detailed financial records, following NDIS payment rules, and using best-practice compliance strategies, Plan Managers can operate efficiently, ethically, and transparently.