The True Cost of Self-Managing Your NDIS Plan (It's Less Than You Think)

Self-managed NDIS plans can be daunting at first. NDIS participants are concerned with the added management, the risk of error and whether they will have sufficient time to maintain order. Others believe that if they don't have a plan manager, they must become the complicated financial manager that they aren't ready to be.

The concerns are valid, but not always what self-management actually entails. This guide talks about the misconceptions of self-management. We will discuss the actual monetary expenses, the time required, who is responsible for managing your own funding and what NDIS participants can often obtain for the expense.

The Dollar Cost Is Surprisingly Low

The major misconceptions about self-management are that it is very expensive and has a lot of moving parts. The direct financial impact is typically fairly insignificant, however.

There is no management fee for managing your own funding, unlike plan management. NDIS participants are not paying a business to be their financial advisor, to handle claims or paperwork. Rather, it is up to them to take responsibility for those duties.

Many people opt to have optional costs which are not mandatory. Some set up a separate bank account for their NDIS money. Others may have a budgeting application or spreadsheet to track spending. Some even hire a bookkeeper to help them occasionally.

The key is that they're individual decisions, even though self-managed participants still need to understand the NDIS pricing arrangements and price limits. Self-management doesn't need to be costly software or in-depth financial skills. Sometimes a basic system in which you're able to track your expenditures and maintain correct records is all you need. Any financial commitment associated with self-management is much lower than most participants thought they would be prior to transitioning.

The Biggest Investment Is Usually Your Time

If there's a real cost to self-management, it's typically the time commitment, not the dollars. A self-managed NDIS plan involves checking your provider invoice, processing invoice payments, keeping track on your budget, and keeping a record of your payments, all of which will come in handy in the future.

These tasks can be new and unfamiliar, at first. As they get more comfortable, they fall into a routine that over time becomes much less time-consuming.

There are also some steps you need to take before you begin, including understanding your funding allocation. A little work at the beginning is worth it when you set up a filing system, determine how you're going to keep track of money going out, and let service providers know of your new organisation.

With those foundations established, however, it is much easier to go through the ongoing administration.

A weekly review of your core budget is sufficient for many participants to keep their support budgets on track. Rather than storing up lots of paperwork, working through it in small chunks makes self-management seem much more manageable and the likelihood of small mistakes blowing up into big issues in the future diminishes.

Self-Management Doesn't Require Accounting Skills

Many people don't consider self-management because they feel that they must have accounting skills or a broad range of financial knowledge. In truth, the administrative aspects of an NDIS plan are far more practical than technical.

Most participants are just keeping track of spending and saving receipts, and ensuring claims are matched by supports received. If you already pay household bills or keep track of a personal budget, some of the same practices can be used when you manage your NDIS funding.

You don’t have to do everything on your own either. You are making important decisions – a trusted family member or another person involved in your support may be able to help with the paperwork. It's also possible to review other management options with your Local Area Coordinator if your circumstances change.

Self-management is about having a simple system that will help you to keep accurate records and keep you in control of the decisions you make that impact your daily life.

Why Audits Worry People More Than They Should

For many, the prospect of self-auditing can be daunting, whereas others envision it as far more complex than it actually is.

What an Audit Usually Involves

When the National Disability Insurance Scheme examines your records, you will normally have to provide documents to substantiate your claims. These can include information about the support services provided, invoices, receipts and evidence of the connection between the supports and your approved plan and disability related goals.

This can be made much easier with good records. If there is a question about the payment later, having these documents saved as received and the payment records all in one place means that most of what you would need is already in place.

This practice helps ensure that the NDIS funds are being used in an appropriate manner and in accordance with the rules. An audit isn't to be feared for those who keep well-organised records.

Understanding the Real Risks

Self-management does have responsibility and it's important to be aware of where there are true risks. The largest one is claiming supports that aren't allowed under your plan, including specialised supports such as specialist disability accommodation where specific rules apply.

You should find out if the support relates to your disability (whether it is daily support or respite care); if it is going towards your goals; and if it is part of the right funding category before using your NDIS funding. When in any doubt, visit the NDIS website.

It's important to keep good records to avoid problems later. Clear documentation indicates items purchased, who provided the support and why it was necessary. These basic tips help you to keep your plan from getting overwhelming.

Self-management involves more personal responsibility than plan management, but when you're well organised and make informed choices, the risks are manageable. That small additional responsibility is offset by the increased flexibility, choice and control participants experience in their support for many.

What You Receive in Return for Self-Managing

Looking only at the responsibilities of self-management tells only half the story. Also, think about what participants will get for the additional administration. Those benefits are what make it worth their while for many.

Having your own funding allows you more flexibility in the way your supports are organised, supporting person-centred practice. You can directly contact providers, arrange your time and make decisions suitable to your situation. Many also enjoy knowing where their money is going as they see each transaction.

The following are some of the positive things that are frequently shared by participants under this scheme:

• More options and control of their support.
• Increased choice of support workers and services.
• An improved understanding of the use of their NDIS funding.
• Avoid delays when waiting for someone else to settle payments.
• More confidence to make changes to their NDIS Plan in the future.

The benefits of these can outweigh the comparatively limited additional administration for those who like to be active in their support.

Who May Prefer a Different Approach

Not all participants are suited to self-management, and that is OK. There are some who have a lot of things on their plate and could not be expected to add more administration, or others who prefer to devote their time to everyday life rather than paperwork.

For those who are dealing with major health complications, undergoing major life changes, or simply think it's not worth keeping up with financial records, a plan manager might be a better choice.

Some participants also receive support services through support coordination, or organisations such as plan partners, which assist them to access the right supports and maximise their funding while not having to do all of the administration.

It isn't a failure if you select another management alternative. The NDIS is a flexible program, which means that people with disability or developmental delay are given choices about what works for them to help them achieve their goals.

A Little Preparation Makes Self-Management Much Easier

At the start it is normal to have worries about self-management. With a bit of preparation, it can be made simpler.

Use a simple solution to deal with provider invoices, receipts and payments. How the folders are handled is more important than the type of file (digital folders, spreadsheets or paper files).

When things are orderly, it's also easier to check your plan for spending and adjust it if necessary, and if you need to put together documents to support your plan, it's easier to do when you have everything in order.

It is also a wise idea to discuss your management plans with your support providers before changes are made. This ensures everyone knows what to expect on an invoice and when to expect it.

Take it one step at a time so as not to become easily overwhelmed. After some time, most of the participants feel more comfortable running themselves. Establishing good habits early on in the process will free up time to spend on establishing supports that will help you meet your goals.

Why Good Record Keeping Pays Off

The simplest method of minimizing the stress of self-management is to practice excellent record keeping habits from the outset. This doesn't require a complicated filing system, but it does require that there are records that are clear, accurate, and readily accessible should the need arise.

Having copies of provider invoices, receipts and payment confirmations lets you track exactly what your funding is being allocated for in your plan. It's also easier to know where your money's going, and to check out unplanned expenses and answer provider queries before they get too large.

The National Disability Insurance Scheme is working to make improvements to its digital systems, so participants should be able to see more of their claims and spending. While older resources referred to the NDIS Price Guide, current pricing information is published through the NDIS Pricing Arrangements. Organised records enable you to make the most of these tools and make day-to-day administration much easier.

With good record keeping, you can reinforce the discussions at your next plan review. Evidences of the support you've acquired and how they have contributed to achieving your goals helps to make a picture of ongoing support. Self-management or not, organised records help make the topic of discussing the future easier.

Don't see record keeping as an extra responsibility, but rather as a helpful practice that safeguards your finances and your sanity. It's much easier to keep your records updated for a few minutes every week, than to try to build up your records over the course of months.

Final Thoughts

Self-managing an NDIS Plan can be a cheaper option for many people than they realise. It's not very difficult to get organised, to keep track of things, and to take responsibility for yourself. Although these things tend to be a bit easier once you get into a routine.

The right decision is the one that best matches your support needs and personal circumstances. Knowing what you are responsible for and what you can expect from your self-management plan will help you make the best choice of support, get the best from your NDIS funding and access your support.