Len Airey has been busy delivering Costing and Pricing workshops to service providers on behalf of NDS last week – one on the Gold Coast and one in Brisbane. This week, one in Ipswich on Thursday, 13th at the Ipswich Country Club and another in Brisbane at the Kedron-Wavell Services Club on Friday, 14th.
Understanding organisational cost structures is critical information for future development. Moving from a welfare model of working to a social business model changes everything – from grants to sales; from not worry about costs to developing, monitoring and constantly reviewing costs; from no application of financial ratios to applying, monitoring and reviewing financial ratios; from a culture of controlling choice to one of choice and control; from delivering supports under funding codes to understanding and responding to individual need; from cash accounting to accrual accounting; from stagnation to innovation; from one source of revenue to exploring multiple sources of revenue; from basic reporting to Boards to analytical reporting to Boards; from Boards overseeing operations to being actively engaged in the strategic development organisations etc.
What is the percentage of your Corporate Costs to total costs? Have you separated them? Do you know the percentage allowed in NDIA pricing for Corporate Overheads? Do you know the “Span of Control” incorporated in NDIA pricing? If not, read the “NDIS Methodology of the Efficient Price” document.
Working to a price set by the NDIA is one of the biggest challenges for organisations, bearing in mind that the price set covers the entire cost of operations and includes a 5% profit margin. Where do your costs sit in relation to pricing released on 1st July 2017 for various supports? Do you know what supports you provide for comparison with the NDIS support items?
DCA Advisory Services has the expertise to assist you with understanding and developing what you need to do to be able to function under the NDIS.
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