NDIS Direct Client Funding Utilisation

Tracking Utilisation of NDIS Direct Client Funding is the process of analysing the Client's Expenditure (both Planned and Used), against the Budgets for NDIS Supports over the duration of the Funding Period.  

Analysing Budget Utilisation allows providers to better understand a Client's use of their NDIS Supports and associated spending patterns. This may help to identify trends as well as any issues that may arise, which could potentially result in a Client exhausting their Support Budgets before the end of the Funding Period. 

NDIS Direct Client Funding Budgets should ideally be configured to align with the Standard Service Booking and/or Service Agreements your organisation has in place for each Client, therefore Utilisation will be tracked based on how these Budgets have been defined. 

This article discusses the various Utilisation information available and how this may be analysed.

Audience: Authorised Representatives, Finance Team, and anyone tasked with creating or updating NDIS Direct Client Funding records


Summary

The following list summarises the content within this article. Click on the links below to take you to the relevant sections:


Configuring Client Funding Under/Over Spend Warning Thresholds

Several of the Budget Utilisation tools in SupportAbility provide indications that the Client is underspending or overspending against a given Budget or Expenditure target.  

In cases such as this, it is important to highlight when a significant variance from the Support Budget or Expenditure target exists. Whereas minor deviations may be regarded as normal and not flagged.  

To facilitate this, SupportAbility provides Client Funding Underspend and Overspend Warning Threshold settings, that may be configured from the default to your organisations desired warning tolerance levels.

Please refer to the 'Client Funding Over/Under Spend Warning Thresholds' section of the Finance & NDIS | Preparation article for details on how to configure these thresholds.

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Utilisation

The Utilisation tab in the NDIS Direct Client Funding record provides a number of different tools and ways to analyse Utilisation information, each of which are discussed in detail below.
To access the Utilisation information for a given Client, first navigate to their relevant NDIS Direct Client Funding record and select the Utilisation tab:

This tab contains a number of different Budget Utilisation tools, and is comprised of four key sections: 
  • Overall Utilisation Summary
  • Utilisation Summary To Date
  • Budget Utilisation
  • Utilisation by Month (including a graph)

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Overall Utilisation Summary

Purpose: A holistic summary of the NDIS Direct Client Funding Utilisation. It summarises all existing Expenditure against the Total Budget.

Information Displayed:

  1. Total Budget - the Total Budget of the NDIS Direct Client Funding represented in dollars
    Calculation: the collective sum of all Flexible Budgets and Support Item Budgets. 
  2. Used Expenditure - the total value of NDIS Support Allocations in Signed Off Activities, represented in dollars and as a percentage of the Total Budget.
    1. Expenditure $ 
      Calculation: The Total Value of NDIS Support Allocations in Signed Off Activities. 
    2. Expenditure %
      Calculation: (Used Expenditure $ (#2a) / Total Budget (#1)) x 100
  3. Used Remaining - the remaining value of the Total Budget once the value of Signed Off Activities has been subtracted, represented in dollars and as a percentage of the Total Budget.
    1. Remaining $
      Calculation: The Total Budget (#1) - Used Expenditure $ (#2a)
    2. Remaining %
      Calculation: (Used Remaining $ (#3a) / Total Budget (#1)) x 100
  4. Allocated Expenditure - the total value of all NDIS Support Allocations (Used - Signed Off and Planned - Not Signed Off), represented in dollars and as a percentage of the Total Budget.
    1. Expenditure $
      Calculation: The Total Value of NDIS Support Allocations 
    2. Expenditure %
      Calculation: (Allocated Expenditure $ (#4a) / Total Budget (#1)) x 100
  5. Allocated Remaining - the remaining value of the Total Budget once the value of delivered and scheduled services has been subtracted 
    1. Remaining $
      Calculation: The Total Budget (#1) - Allocated Expenditure $ (#4a)
    2. Remaining %
      Calculation: (Allocated Remaining $ (#5a) / Total Budget (#1)) x 100

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Utilisation Summary To Date

Purpose: A holistic summary of the NDIS Direct Client Funding Utilisation from the perspective of how far into the funding period the Client is, and thus, how much value should have been allocated as Supports by this point in time, and what balance should remain.  

How it works: It is important to note that this form of analysis:

  1. does not differentiate between Planned and Used expenditure, and treats all allocations as equal, regardless of the Sign Off status of the Activity.
  2. relies on the base assumption that the Client intends to spend the funding at a consistent rate throughout the funding period in order to detect over or under-spending patterns as early as possible. 

For example, let's assume that today, when looking at this information, the Client is 50% of the way through their funding period.  This utilisation tool then makes the assumption that the Client should have spent approximately 50% of their Funding and therefore sets the Target Allocated Value (the expected value of all Supports Allocated in Activities that commenced on or before today) to be 50% of the value of the Total Budget for this Client Funding record. 

The actual value of all Supports allocated for this Client Funding record is then compared against the Target Allocated value to determine how much the Client's actual expenditure deviates from the target value to help identify over or under-spending trends.

Information Displayed:

  1. Funding Period - The Start Date and End Date of the Client Funding record that defines the Funding Period
  2. Current Date - Today's date.
  3. Days into Funding Period - How far into the funding period the Current Date is, represented in days and a percentage of the funding period
    1. Days into Funding Period
      Calculation: If the Current Date is within the funding period, this is calculated as the number of whole days between the Client Funding Start Date and the Current Date.  If the Current Date is after the Client Funding End Date, this is calculated as the number of whole days in the funding period.
    2. % into Funding Period
      Calculation: (Days into Funding Period (#3a) / Total Days in the Funding Period) x 100
  4. Target Allocated - The expected value of all Supports Allocated in Activities that commenced on or before today.  Calculated as a pro-rata portion of the Total Budget based on how far into the Funding Period the Current Date is.
    Calculation: Total Budget for the NDIS Direct Client Funding (Overall Utilisation Summary: #1) x Days into Funding Period % (#3a)
  5. Actual Allocated - The actual value of Supports that have been Allocated in any Activities that commenced on or before today.
    Calculation: The total value of all NDIS Support Allocations (Used - Signed Off and Planned - Not Signed Off) for Activities that commenced on or before today
  6. Variance from Target - The difference between the Target Allocated value and the Actual Allocated value represented as both dollars and as a percentage of the Target Allocated value.
    If the Variance from Target % (#6b) is less than the Underspend Warning % threshold configured in System Preferences, this variance value will be displayed in an amber warning.
    If the Variance from Target % (#6b) is greater than the Overspend Warning % threshold configured in System Preferences, this variance value will be displayed as a red warning.
    1. Variance from Target $
      Calculation: Target Allocated value (#4) -  Actual Allocated value (#5) 
    2. Variance from Target %
      Calculation: (Variance from Target $ (#6a) / Target Allocated value (#4)) x 100 

Threshold Warnings:
  • Underspend: If the Variance from Target % (#6b) is less than the Underspend Warning % threshold configured in System Preferences, these variance value (#6a & #6b) will be displayed as an amber warning.
  • Overspend: If the Variance from Target % (#6) is greater than the Overspend Warning % threshold configured in System Preferences, these Variance values (#6a & #6b) will be displayed as a red warning.

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Budget Utilisation - Overall Utilisation

Purpose: A utilisation summary that displays each defined Budget, it's associated Planned and Used Activity expenditure, as well as the portion of the Budget that remains unallocated:

Information Displayed:

  1. Support - The Flexible Budget or Support Item Budget defined in the Client Funding Details tab.  Budgets are grouped by NDIS Support Category.
  2. Budget - The Total Value of the Flexible Budget or Support Item Budget.
  3. Used - The value of NDIS Support Allocations in Signed-Off Activities, attributed to the Flexible Budget or Support Item Budget 
    1. Calculation for Support Item Budgets: The total value of this specific Support, Allocated in Signed-Off Activities
    2. Calculation for Flexible Budgets: The total value of Supports Allocated in Signed-Off Activities, that belong to the same Support Category as the Flexible Budget.  Excludes any Supports that have their own Support Item Budget defined.
  4. Planned - The value of NDIS Support Allocations in Non-Signed-Off Activities, attributed to the Flexible Budget or Support Item Budget 
    1. Calculation for Support Item Budgets: The total value of this specific Support, Allocated in Non-Signed-Off Activities 
    2. Calculation for Flexible Budgets: The total value of Supports Allocated in Signed-Off Activities, that belong to the same Support Category as the Flexible Budget.  Excludes any Supports that have their own Support Item Budget defined.
  5. Total Allocated - the total value of all NDIS Support Allocations related to this Flexible Budget or Support Item Budget 
    Calculation: Used (#3) + Planned (#4)
  6. Remainingthe remaining value of the Flexible Budget or Support Item Budget once the value of delivered and scheduled services has been subtracted  
    Calculation: Budget (#2) + Total Allocated (#5)

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Budget Utilisation - Utilisation To Date

Purpose: Displays each defined Budget and determines the portion of each Budget that is expected to have been allocated as Supports by this point in time, and what balance should remain.  

It is important to note that this form of funding analysis relies on the base assumption that the Client intends to consume and utilise each budget at a consistent rate throughout the funding period.  This is required to provide early detection of Client expenditure patterns that may indicate a trend towards overspending or underspending. 

For example, let's assume that today, when looking at this tool, the Client is 50% of the way through their funding period.  This utilisation tool assumes that the Client should have spent approximately 50% of each Budget and therefore sets the Target Allocated Value (the expected value of all Supports Allocated in Activities that commenced on or before today) to be 50% of the value of the associated Budget. 

The Actual value of all Supports allocated for this Budget by this time, is then compared again the Target Allocated value, to determine how much the Client's actual expenditure deviates from the target value to help identify overspending or underspending issues.

Information Displayed:

  1. Support - The Flexible Budget or Support Item Budget defined in the Client Funding Details tab.  Budgets are grouped by NDIS Support Category.
  2. Budget - The Total Value of the Flexible Budget or Support Item Budget.
  3. Target Allocated - The expected value of Supports Allocated in historical Activities by this time.  Calculated as a pro-rata portion of the Budget (#2)value based on how many days into the funding period the Current Date is.
    Calculation: Budget value x Days into Funding Period % (see Utilisation Summary To Date #3)
  4. Actual Allocated - The actual value of Supports that have been Allocated in any Activities that commenced on or before today. 
    1. Calculation for Support Item Budgets: The total value of this specific Support Item in Activities that commenced on or before today. 
    2. Calculation for Flexible Budgets: The total value of Supports in the same Support Category as the Flexible Budget Allocated.  Only includes Supports that do not have a separate Support Item Budget defined.  Only includes Allocations in Activities that commenced on or before today.
  5. Variance $
    The difference in dollars between the Target Allocated value and the Actual Allocated value. 
    Calculation: Target Allocated value (#3) -  Actual Allocated value (#4)
  6. Variance %
    The difference in dollars between the Target Allocated value and the Actual Allocated value represented as a percentage the Target Allocated value.
    Calculation: (Variance $ (#5) / Target Allocated value (#3)) x 100

Threshold Warnings:

  • Underspend: If the Variance from Target % (#6) is less than the Underspend Warning % threshold configured in System Preferences, these Variance values (#5 & #6) will be displayed as an amber warning.

  • Overspend: If the Variance from Target % (#6) is greater than the Overspend Warning % threshold configured in System Preferences, these Variance values (#5 & #6) will be displayed as an red warning.

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Utilisation by Month

Purpose: Provides details of monthly planned and used Activity expenditure for each defined Budget, to provide an overview of how the Client's spending has progressed over time and how it has varied from month-to-month over the funding period.

Information Displayed:

  1. Month Start Date - The first day of each Month we are displaying utilisation information for. 
    Calculation: The Month Start Date of the First month will always be the Start Date of the NDIS Direct Client Funding Record.  The Start Date of the next month is calculated as one Month after the current Month Start Date.
    In situations where the next month has less days than the current month (eg. the NDIS Direct Client Funding record has a Start Date of 31/01/2019), the first Month Start Date will be 31/01/2019.  However, because February does not have 31 days, the Start Date of the next month will be the last day in February(28/02/2019).
  2. Total Days - The number of whole days in the current Month
    Calculation: Number of whole days between the Start Date of the current month and the Start Date of the next month.
  3. Budget Guideline:  - The current month's portion of the Client Funding Total Budget (sum of all Support Item Budgets and Flexible Budgets) based on the number of days in the current month.
    Calculation: (days in the current month (#2) / days in the funding period (see Utilisation Summary To Date #3a)) x Total Budget (see Overall Utilisation Summary #1)
  4. Used -  The value of NDIS Support Allocations in Signed-Off Activities within the current month
    Calculation: The value of Supports Allocated in Signed-off Activities that commenced on or after the Start Date of the current month and before the Start Date of the next month
  5. Planned - The value of NDIS Support Allocations in Non-Signed-Off Activities within the current month
    Calculation: The value of Supports Allocated in Non-Signed-off Activities that commenced on or after the Start Date of the current month and before the Start Date of the next month
  6. Variance $ - The difference in dollars between the Budget Guideline value and the Actual Allocated value.  
    Calculation: (Used (#4) + Planned (#5)) -  Budget Guideline $ (#3)
  7. Variance % - The difference in dollars between the Budget Guideline value and the sum of the Planned and Used values, represented as a percentage the Budget Guideline value.
    Calculation: (Variance $ (#6) / Budget Guideline (#3)) x 100

Threshold Warnings:
  • Underspend: If the Variance from Target % (#7) is less than the Underspend Warning % threshold configured in System Preferences, these Variance values (#6 & #7) will be displayed as an amber warning.
  • Overspend: If the Variance from Target % (#7) is greater than the Overspend Warning % threshold configured in System Preferences, these Variance values (#6 & #7) will be displayed as a red warning.

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Utilisation by Month Graph

Purpose: The Utilisation by Month graph presents the Utilisation by Month data in a visual and interactive format to help identify issues and trends more clearly.  This graph is designed to improve communication of planned and used expenditure patterns to Clients, Families and nominees alike.

Interactive Graph Actions:

  • Hover over Points to show Detail - Hovering over individual points on the graph will show the Budget Guideline, Used and Planned for the selected month.
     

  • Show/Hide Elements - The Budget Guideline, Used and Planned elements of the graph can be hidden or shown by clicking on their respective labels within the graph legend
     

  • Download - The graph can be downloaded in various formats such as PNG, PDF, SVG or JPG, using the contextual menu in the top right corner of the graph. Once downloaded, you can include the graph in emails or word documents to as a great way to communicate Client Funding details with Client's, Nominees and Plan Managers.
     

  • Zoom:Click and drag the mouse across a section of the graphing area to zoom into that section.  Click the 'Reset Zoom' button to revert the graph to original state.
     

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