Managing your NDIS funds properly will not only show the achievement of your goals but it is also a strong indication to the NDIA of how you have effectively utilised the funding. Mismanaging your funds will lead to short or long-term consequences.
One of the main reasons why a NDIS participant would overspend the budget is due to the lack of monitor & tracking the fund. Having one service provider with multiple services can easily allow you to go over the budget. It is not uncommon for the user to forget track of each payment. There are also some instances where providers do not bill in at a timely manner. The problem with exceeding the allocated fund limit is that the exceeding costs are taken out of the NDIS participants personal expenses.
Simple steps on how to evade overspending:
1. If you are Self-Managed:
Always have a copy of the updated invoices and service agreements from your providers to track your funds. If you are Plan Managed, it is the responsibility of the Plan Manager to process invoices and keep track of your funds.
2. If you feel that you may overspend your funds, the best person you may contact is your LAC and have an early review of your plan. You may also contact your service providers directly or through your local coordinators and ask for options. Your LAC will give you helpful tips and advices in terms of keeping track of your budget.
In some cases, participants can be underspending. One of the few reasons would be taking time in finding the right provider or having the fear of overspending. This will give an indication to the NDIA that you are not utilising your NDIS funds properly, which might lead to the possibility of funds being cut the following annual plan review.
Simple steps on how to deal with underspending:
1. If you are Self-Managed, always have a copy of the updated invoices from your providers and service agreements. This is so that you can track your funds. If you are Plan Managed, it is the responsibility of the Plan Manager to update you with your spending. In this manner, you will know where you are at with spending and can maximise funds.
2. You can call your LAC to discuss what transpired along the way that led you to underspending your funds. You have to be able to explain in full details the struggles you faced like finding the right service providers or personal reasons that led to cancelling the service/s.
During your plan review with your LAC or ECC, all your transactions will be reviewed in terms of how you spent your funds. The key element to prepare for this regardless if you over or under spend is to come prepared with proof of what and how it happened.
Your NDIS journey should focus on your goals. You should not be dealing with invoices or tracking funds. Why not convert all your time and energy focusing on yourself and your goals?
Let Yogi Care take care of the financial management. Be part of our growing family and allow us to help you ease the burden of underspending or overspending your funds.
Email us at help@yogicare.com.au or call us at 08 7082 5555.
Yogi Care Plan Management service is delivered by professional accountants in public practice. Our professional accountants' public practice is Yogi Group. review our plan managers at www.yogigroup.com.au