The System Governor – through the department – is responsible for protecting the integrity of the aged care system and how it’s run. Assurance activities are things the System Governor can do to meet this responsibility. These activities help everyone have a clearer idea of how the aged care system runs.
The System Governor might use assurance activities to check things like:
- how providers use subsidies or grants, and how they charge for services
- how providers manage the financial accounting for their services
- how providers deliver services
- how providers work and interact with older people who are using their services
- what information and documents providers give the department, and how accurate and reliable these are.
Using findings from assurance activities
The System Governor can use any findings from their assurance activities to take other regulatory action under the Aged Care Act. They can also report on anything they find while carrying out these activities and may publish the report online. If a report includes a result that’s critical of a provider, the System Governor must give the provider the chance to respond.
An assurance report can also recommend that a provider take action in response to an identified issue. The System Governor may write to the provider requesting their response to the recommendation. The provider must reply and say if they either:
- accept the recommendation, and detail any action they have taken in response
- don’t accept the recommendation, and the reasons why.
Supporting assurance
Providers must support the System Governor’s assurance activities, including providing ‘reasonable facilities’ to assist. This could include providing information or access to relevant staff. If the provider doesn’t do this, they could get a fine or infringement notice.
The System Governor can also ask for information or documents relating to the assurance activity. People don’t have to give this information. They can ask any person they believe may have this information, such as a resident of a residential care home. Before asking a provider to give this information, the System Governor must tell the provider they have an obligation under the Aged Care Act to cooperate with someone using these powers.
Assurance in practice
The department selects a Support at Home provider for an assurance activity to check how it’s using government subsidies. An officer from the department asks the provider to give them copies of financial records, invoices, and client service agreements. Before requesting the documents, the officer reminds the provider of their obligation under the Aged Care Act to cooperate with any person performing functions or exercising powers under the Aged Care Act. The manager promptly provides the requested documents and answers questions about service delivery. The review finds that most practices comply, but a few invoices for travel costs were miscalculated. The department prepares a report on the assurance activity and recommends the provider looks into their billing processes. The provider agrees to fix its billing process and confirm the changes in writing.