Reducing administration and compliance costs

This paper looks at the role of NGOs to work with DHBs, PHOs, Ministries and each other to reduce the administrative, transaction, and compliance costs that potentially act as a drag on the productivity of the sector. It highlights some existing best practice collaborative efforts, while acknowledging that these are not as widespread as they could and should be. It then considers the potential from these and other practice improvements to improve the effectiveness and efficiency across the sector.

• The NGO Sector: Opportunities for reducing administration and compliance costs (pdf, 137 KB)

Over the years, various groups and umbrella bodies, such as ANGOA and Platform, have also raised issues about contracting processes and the compliance burden on NGOs.

Elimination of multiple audits – 2012 update

Several pieces of work are currently underway within the Ministry of Health with a focus on reducing the cost of compliance for NGOs. For example, the aged residential care certification (Ministry of Health) and contractual (District Health Board) audits have been integrated already. Activities with other audit areas are:

1. Residential Disability Services
   The Ministry is working on a project to improve residential disability services monitoring arrangements, aiming for implementation by 1 October 2012.
   
   It is proposed that 70 residential disability providers currently certified against the Health and Disability Services (Safety) Act 2001 will have developmental evaluations scheduled at the midpoint of their certification period. Designated Audit Agencies will use information from the developmental evaluation along with a provider declaration to monitor requirements related to the Health and Disability Services Standards (NZS8134: 2008).
   
   These changes aim to support the Government’s response to the recommendations of the Social Services Select Committee Inquiry into the Quality of Care and Services Provision for People with Disabilities by:

• reducing onsite monitoring and associated costs to providers as the Ministry will fund the developmental evaluation
• enhancing the focus on quality of life outcomes for people with disabilities
• improved coordination of monitoring activity
• improve information available to the public while safeguarding the privacy of individuals as summary reports will be released

2. Home and Community Support Sector Standard Project
   One of this project’s main objectives is to reduce duplication of effort for funders and providers in terms of meeting accountability requirements, by developing a national cross agency audit framework, high level audit requirements, and impact and risk assessment by 30 September 2012. The project for Home and Community Support Sector Standard is made up of ACC, DHB and Ministry of Health Disability Support Services representatives.
    
3. Better Public Services Project
   This project is being led by the Economic Development Group in the Ministry of Business, Innovation and Employment with the Ministries of Health, Social Development, Justice and Te Puni Kokiri. The pilot project’s goal is to improve cross-agency contracting practices with six large NGOs by developing a more cohesive government framework and approach to engaging with NGOs providing social services. It is expected that this will reduce duplication of management effort and NGO compliance costs, and increases the efficiency of engagements between the Crown and NGOs for the benefit of both parties.

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