A business case study addressing financial process challenges for a disability service provider. We outline the critical areas identified for improvements and the specialised tailored tools used to successfully provide tailored recommendations to address the unique needs of the disability service provider.  This ensured compliance with NDIS regulations, while driving improvements in financial processes and efficiency.

The situation

A disability service provider approached the dVT Group to evaluate its current financial processes. As a certified NDIS provider, the client is required to operate within the National Disability Insurance Scheme (NDIS) framework and adhere to strict compliance and reporting standards. Recent staff changes had caused disruptions and uncertainty regarding whether these standards were being properly met.  Consequently, the board of directors agreed to obtain a thorough and independent review of their internal processes.

In addition to our financial consulting experience, dVT brings valuable experience in assisting NDIS providers both professionally and personally as caregivers for children accessing NDIS services. This firsthand experience equips our team with a deep understanding of the challenges NDIS providers encounter as we have personally navigated the complexities and frustrations of the NDIS system ourselves. 

This personal insight enables us to empathise with the emotions involved.  It gives us a unique perspective, motivating  us to deliver the most effective tailored solutions and support to NDIS providers.

Recognising the specialist skills needed to navigate the complex financial landscape regulated by the NDIS, the client sought dVT’s services to address their specific challenges. Their aim was to ensure compliance while optimising their financial processes for enhanced efficiency and transparency.

Key Issues Identified

The initial stage involved identifying critical areas for improvement within the company’s policies and processes. Our comprehensive assessment highlighted several key concerns:

1. Inadequate Systems and Processes: Manual data entry and a lack of integrated software hindered the client’s ability to meet NDIS compliance requirements, leading to operational risks such as errors and potential fraud.
2. Lack of Written Policies and Procedures: The absence of documented financial policies and procedures impeded effective governance and operational efficiency.
3. Insufficient Internal Controls: Inadequate internal control procedures, including limited segregation of duties, left the client vulnerable to financial mismanagement and errors.
4. Management Account Procedures: Standardised accounting processes were lacking, impacting timely financial reporting and decision-making.

Tools and Methodology

To identify these improvement areas, dVT Group utilised both our extensive, specialised expertise and tailored tools designed specifically for the needs of the disability service provider.  These tools allowed us to delve into the client’s financial processes to identify areas needing targeted recommendations. 

Examples of tools used  –

1. Financial Analysis Tools: used to thoroughly assess the client’s current financial processes, enabling us to identify areas of inefficiency, potential risks, and opportunities for improvement.
2. Compliance Assessment Tools: used to evaluate the disability service provider’s adherence to NDIS regulations and reporting standards. This helped identify gaps in compliance and what needed to be addressed. 
3. Process Mapping Tools: used to visually map out the client’s existing financial processes.  This allowed us to identify bottlenecks, redundancies, and areas for streamlining to enhance efficiency and effectiveness.
4. Industry Benchmarks and Best Practices: was used to compare the client’s financial processes to industry standards, allowing us to identify opportunities for improvement and the recommendation of relevant best practices.
5. Collaboration and Communication Tools: used to facilitate discussions with the client’s team members, stakeholders, and subject matter experts. These tools helped us gather valuable insights, clarify requirements and ensure alignment throughout the recommendation process.

Recommendations

By leveraging these tools and resources, the dVT Group were able to successfully provide tailored recommendations to address the unique needs of the disability service provider.  This ensured compliance with NDIS regulations while also driving improvements in financial processes and efficiency.

The recommendations to address the challenges were –

1. Development of Comprehensive Policies and Procedures:
   Priority was given to establishing written financial policies and procedures to ensure transparency, accountability and efficiency in the day-to-day operations. This was followed up with recommendations for internal training to ensure all staff were aware of these policies and procedures.
   
2. Transition to Integrated Software Solutions: Implementing integrated software solutions to streamline processes, enhance data accuracy and improve regulatory compliance.
   
3. Enhanced Segregation of Duties: Strengthening internal control procedures to reduce the risk of errors and fraud through improved segregation of duties and additional administrative support.
   
4. Engagement of Virtual CFO and NDIS Specialist Accountant: A virtual Chief Financial Officer with expertise in NDIS compliance was appointed to provide strategic financial guidance and ensure regulatory compliance.
   
5. Establishment of Divisional Accounting Practices:  these accounting practices were implemented to facilitate accurate reporting and decision-making, enhancing transparency and accountability.

The result

The outcomes of these initiatives were remarkable. By addressing the identified challenges and implementing the recommended strategies, the client significantly enhanced its operational efficiency, ensured compliance with NDIS requirements and strengthened their overall financial management practices.

If you’d like to learn more about our approach or discuss how we can help your company overcome similar challenges, don’t hesitate to contact Angela Bensemann or Caryl Dias at dVT Group at (02) 9633 3333 or by email at mail@dvtgroup.com.au.

dVT Group is a business advisory firm that specialises in business turnaround, insolvency (both corporate and personal), business valuations and business strategy support.