Annual Report 2016-2017

National Disability Insurance Agency
Annual Report 16/17

Dear NDIS,

Just wanted to say thank you. My son is off with his support worker today having fun with some new friends in that big wide world that has always been so scared of him.

Me, I’ve had a few leisurely cups of tea, read the news, done the washing, and

I must admit, feeling a tad lost. You see, in 22 years I have forgotten how to just sit and relax, to do things just for me.

- Karen, mother of NDIS participant

Letter of transmittal

12 October 2017
The Hon Christian Porter MP
Minister for Social Services
Parliament House
CANBERRA ACT 2600

Dear Minister,

On behalf of the National Disability Insurance Agency, I present to you the Annual Report for the reporting year 1 July 2016 to 30 June 2017.

The report provides a detailed description of the Agency’s operations during the year and has been prepared in accordance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the National Disability Insurance Scheme Act 2013 (the NDIS Act).

In accordance with section 39 of the PGPA Act, the report provides information about the Agency’s performance in achieving its purposes.

The report includes a copy of the Agency’s annual financial statements and the Auditor-General’s report as prescribed by subsection 43(4) of the PGPA Act.

The report is made in accordance with a resolution of the Board of Directors, who are responsible for its preparation and content and is being provided to you as the responsible Minister under section 46 of the PGPA Act.

The incorporated summary of the Annual Financial Sustainability Report 2016–17 and the inclusion of the reviewing actuary’s report fulfils the Agency’s obligations under subsection 172(4) of the NDIS Act.

Yours sincerely,

Dr Helen Nugent AO
Chairman, National Disability Insurance Agency

About this report

This report is a summary of the performance and operations of the National Disability Insurance Agency (‘the Agency’) for the 2016–17 financial year as required by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). It presents the actions, initiatives and key performance indicators around the implementation and management of the National Disability Insurance Scheme (‘the Scheme’) against targets set out in the Department of Social Services 2016–17 Portfolio Budget Statement (PBS) and the NDIA 2016–21 Corporate Plan.

The NDIA and the Board acknowledge the objectives of the Convention on the Rights of Persons with Disabilities.

We show our respect and acknowledge Aboriginal and Torres Strait Islander people who are the Traditional Owners and Custodians of this land. We pay our respects to their Elders both past and present.

Please note: Aboriginal and Torres Strait Islander people should be aware that this report may contain images or names of deceased persons.

Structure of this report

The Introduction and Section 1 of this Annual Report provide an overview of the NDIS rollout to June 30 2017, and detail key programs of work undertaken by the NDIA in the 2016–17 financial year.

The Annual Performance Statement in Section 2 and Annual Financial Statement in Section 4 are written to meet the reporting requirements of government, as required under the PGPA Act.

Section 3 provides details of the NDIA’s governance arrangements and other reportable items required under the PGPA Act for corporate Commonwealth entities.

1.Table of contents

Letter of transmittal 3

About this report 4

Structure of this report 5

1.Table of contents 6

2.List of tables 7

Introduction 8

3.In this section 9

4.Message from the Chairman 10

5.Message from the Chief Executive Officer 12

6.About the NDIS 13

7.Develop actuarial estimates of the reasonable and necessary support needs of the targeted population. 13

8.Focus on lifetime value for Scheme participants. 13

9.Invest in research and encourage innovation. 13

10.Support the development of community capability and social capital. 13

11.The National Disability Insurance Agency 15

12.From trial to transition 16

13.Year one: transition to full Scheme 17

Section One
Year one of full Scheme transition 39

14.Chapter 1 40

15.Chapter 2 55

16.Chapter 3 62

17.Chapter 4 67

Section Two
Performance Report 80

18.Performance statements authority 81

19.Performance statement 82

20.Financial performance 2016-17 91

21.Statement of financial position 93

Section Three
Governance 95

22.Governance arrangements 97

23.Agency Board 98

24.Board Members 99

25.Board committees 103

26.Independent Advisory Council 105

27.Executive Management Group 107

28.Reportable items 110

Section Four
Sustainability and Financial Performance 118

29.Summary of National Disability Insurance Scheme Financial Sustainability Report 2016-17 120

Financial statements for the period ending 30 June 2017 123

Overview 139

30.Financial Performance 144

30.1.Expenses 144

30.2.Own-Source Revenue and Gains 148

31.Financial Position 151

1.1.Financial Assets 151

31.1.Non-Financial Assets 155

31.2.Payables 159

31.3.Other Provisions 162

Reconciliation of provisions 163

32.Funding 165

32.1.Cash Flow Reconciliation 165

33.Governance, Employees and Relationships 167

33.1.Employee Provisions 167

33.2.Key Management Personnel Remuneration 168

33.3.Related Party Disclosures 168

There were no other related party transactions during the period. 170

33.4.Remuneration of Auditors 170

34.Managing Uncertainties 171

34.1.Contingent Assets and Liabilities 171

34.2.Financial Instruments 171

34.3.Fair Value Measurement 176

35.Acronyms 179

36.Glossary 181

37.Appendix 1: NDIA staffing statistics 185

38.Appendix 2: Board members’ positions, terms and meetings attended 2016-17 187

39.Appendix 3: Administrative Appeals Tribunal (AAT) reviews and decisions 2016-17 189

40.Appendix 4: Summary of incidents pursuant to section 38 of the Work Health and Safety Act 2011 (WHS Act) 190

41.Appendix 5: Enabling Legislation 191

42.Appendix 6: Compliance with Carer Recognition Act 2010 192

43.Compliance index (17BE and 17BF of PGPA Rule 2014) 193