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Operational Policy and Guidelines 2024/25 (updated 18 November 2024)

This guidance is to support Needs Assessment Service Coordination (NASC) and EGL sites to keep spending within their indicative budgets (NASCs) and fixed budgets Enabling Good Lives (EGL) sites.

It also sets out the situations when decisions on support packages must be referred to a Review Panel.

It provides a nationally consistent approach to staying within budgets, and can be applied by NASCs and EGL sites, while implementing a freeze at current levels of funding for facility-based care for 2024/25 pending commissioning and completion of a detailed review of the contract and pricing models.

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What’s changed (18 November 2024)?


Para 35 – Agreeing transfers within existing residential care placements – has been updated, as follows.

Prioritisation of transfers also applies to disabled people moving between regions to, for example, be closer to family.

Transfers can be prioritised when a transferring NASC agrees to continue to fund residential care for the transferring disabled person for the remainder of the financial year.

The transferring NASC and the receiving NASC should agree to a transition plan for the disabled person as part of the usual process. 

Note: alternate format versions have been commissioned and will be published when available.

Operational guidelines covering letter to NASCs

22 August 2024

To our NASC colleagues

Outcomes of the Independent Review – operational guidance

The Independent Review, commissioned by the Minister for Disability Issues, Hon Louise Upston, made recommendations to stabilise the Disability Support System (DSS) and keep expenditure within the Budget appropriation.

In response to the review, the Minister for Disability Issues, Hon Louise Upston, announced the immediate reinstatement of budgets and monitoring and reporting for NASC and EGL sites.

Additionally, the Minister announced current funding levels for residential care and service providers will be maintained at 2023/24 levels while a rapid review of pricing is conducted.

The Minister also announced the set-up of an interagency Taskforce within MSD to manage the transition of Disability Support Services and to urgently implement the recommendations of the independent review.

The Ministry of Disabled People, Whaikaha, is working closely with the interim members of the Taskforce on the implementation of these immediate steps. Once the Taskforce is fully up and running it will be reaching out to all sections of the community, including providers, about how you will be engaged in the work around the other Review recommendations.

Role of NASCs and EGL sites

As NASCs and EGL sites you have a critical role in managing DSS expenditure.

You allocate supports for disabled people, tāngata whaikaha Māori and family/whānau that account for the majority (85%) of funding administered by the Ministry of Disabled People, Whaikaha, with approximately 79% of costs arising from allocations made to NASCs and 6% of costs from allocations made to EGL sites.

Operation Policy and Guidelines

Attached to this letter are the new operational policy and guidelines, ‘Operational Policy and Guidelines 2024/25 – Freeze on residential care funding and management of NASC indicative budgets and EGL site fixed budgets.’ 

Please note this guidance is being provided ahead of budgets being advised to support the immediate response to the Minister’s independent review announcements on 15 August 24. This document may be updated during the implementation process and in response to questions and issues.

This guidance, in accordance with the existing services specifications, is to support you to provide a nationally consistent approach, to keep spending within your indicative budgets (NASCs) and fixed budgets (EGL sites).

It also sets out the circumstances when decisions on support packages must be referred to a Review Panel. 

Online meeting for NASC and EGL sites on Monday 26 August

You will receive an invitation to an online meeting for NASC/EGL sites for Monday 26 August, to give you an opportunity to clarify your understanding of the content of the guidelines.

We are also happy to plan additional question-and-answer session about the guidelines but will be guided by you as to what is most helpful at this point.

Budgets for NASCs and EGL sites

We expect to send out the budgets to NASC and EGL sites on Wednesday 28 August 2024. You will be invited to online workshops regarding the budgets on Thursday 29 August 2024. 

There will be opportunities to discuss each of your budgets in more detail, in the coming weeks. As we have previously discussed, we are open to holding regular check in sessions from next week but would like your guidance as to what will be most useful for you all.

Training for NASC and EGL sites

We are currently working on developing training material to support you all and will share that over the coming weeks. This will be an iterative process, and we will continue to refine the tools and guidance as we receive your feedback.

Expenditure Reporting

Ensuring we have regular reporting against spend for each NASC is crucial for having oversight of the management of budgets. Regular portfolio management meetings and monthly spend reporting will be required to support these practices. 

We anticipate discussing this with you in more detail once budgets are confirmed, with a view to the first round of reporting taking place in October once September data is available.

Next Steps

We will work with you all closely to ensure you are supported through this change process, and we can discuss any specific needs at our meeting on Monday 26 August 2024.

Noho ora mai

Amanda Bleckmann
Deputy Chief Executive – Commissioning, Design and Delivery

Whaikaha – Ministry of Disabled People 

Fact sheet: NASC fiscal envelope and EGL site budget methodology

28 August 2024

This fact sheet follows the Government’s recent announcement of the Independent Review of the Disability Support System.

It explains how indicative budgets for NASCs and fixed budgets for EGL sites have been calculated and will be reinstated, as outlined in Recommendation 1 of the review.

In Budget 2024 the Government provided additional funding of $1.1billion to support the delivery of Disability Support Services (DSS).

Budget methodology

In Budget 2024, the Government provided additional funding of $1.1 billion to support the delivery of Disability Support Services. The Budget also established funding for Disability Support Services for the 2024/25 year.

Against this background, budgets have been calculated with a starting point of NASC and EGL site spend in 2023/24, with additional funding from Budget 2024 going to support growth for community-based supports.

NASC and EGL site budgets

NASCs and EGL sites are required to manage within an overall budget for supports. This budget includes a specific component for residential care, as per Recommendation 2 of the review.

Each NASC and EGL site has a budget that is greater than their spend in 2023/24.

To manage within budget, NASCs will need to ensure future funding decisions are carefully managed.

Funding managed by NASCs and EGL sites

NASCs and EGL sites manage funding for supports paid via CCPS. The spend relating to these supports will be reflected against the NASC/EGL site budget.

This includes:

  • Facility-based supports, which includes community residential care in group homes and in aged care, facility-based respite care, contract board, and foster care
  • Community-based supports, which includes: household management, personal care, supported living, and other similar supports
  • Flexible supports, which includes: IF Household Management, IF Personal Care, IF Respite, EIF, Carer Supports, and Personal Budget services (including EGL Personal Budgets).

Note: these items and other similar costs will be reported against the NASC and EGL site budgets.

Funding managed nationally

The spend relating to these supports will not be reflected against the NASC and EGL site budgets.

Supports allocated by NASCs and funded nationally include:

  • behaviour support
  • Oranga Tamariki packages
  • supports paid via CMS.

Supports funded nationally:

  • environmental supports, including equipment, hearing aids, and cochlear implants.
  • connecting costs, including the costs of the NASC and DIAS contracts.
  • child development services
  • supports under the High and Complex Framework, including Secure Forensic Care, and RIDSAS.

Ancillary costs funded nationally:

  • sleepover top-up payments
  • pay equity for residential care
  • in-between travel.

To support the sustainability of the disability system, NASCs and EGL sites are expected to manage all allocations carefully, regardless of where they are funded.