Underfunded Invoices and Budget Deficits
What is an underfunded invoice?
An underfunded invoice occurs when there is not enough available Support at Home funding in the client’s account to pay for a service, support, or item. This can happen if the client’s quarterly budget has already been used and there are no unspent funds available to cover the additional cost.
What happens if my account goes over budget?
If your account goes over the available quarterly budget and there are no unspent funds to supplement the cost, your account will go into deficit. A deficit means that services or invoices have been received, but there is no available government funding left to pay for them.
Can Local Guardians pay an invoice if there are no funds available?
No. Local Guardians can only approve and pay invoices where there is available government funding in the client’s account. If there are no funds available, Local Guardians cannot pay the invoice on behalf of the client.
Who is responsible for underfunded invoices?
If an invoice is underfunded and there is no available government funding to pay it, the client is responsible for paying the outstanding amount privately. Payment will need to be made directly to the relevant service provider, supplier, or contractor.
Why can’t Local Guardians pay the invoice and recover the funds later?
Local Guardians cannot use funds that are not available in the client’s account. Support at Home funding is allocated for approved care and support needs within the available budget. If the budget has already been used and there are no unspent funds available, there are no government funds available to cover additional invoices.
Can future quarterly funds be used to pay old underfunded invoices?
Invoices should be paid from the funding period they relate to, where funding is available. If a previous quarter has been fully exhausted and there are no unspent funds available, the invoice may remain underfunded and become the client’s private responsibility. Clients should not rely on future quarterly budgets to cover overspending from a previous quarter.
How can I avoid underfunded invoices?
It is important to monitor your account regularly and keep track of your spending. Clients and representatives are encouraged to:
- Review monthly statements
- Check available funding before increasing services
- Consider service costs before approving extra shifts or purchases
- Contact Local Guardians before arranging new services or equipment
- Keep track of invoices, reimbursements, and service bookings
- Ensure services remain within the agreed budget
What if I want to increase services?
If you would like to increase services, please contact Local Guardians before making changes. We can review your current budget and advise whether there is enough funding available to support the increase. If there is not enough funding available, you may choose to pay privately for additional services.
What if a provider sends an invoice that I did not approve?
If you believe an invoice is incorrect, duplicated, or was not approved, please contact the provider directly as soon as possible and notify Local Guardians. Local Guardians can review invoices submitted through the account, but the client or representative may also need to discuss disputed charges with the service provider.
What if my care needs have increased and the budget is no longer enough?
If your care needs have increased and your current budget is no longer meeting your needs, please contact Local Guardians. We can discuss your current supports, review the budget, and consider whether further assessment or a Support Plan Review may be required. While this is being reviewed, services may still need to be prioritised within the available funding.
Can I still receive services if my account is in deficit?
If your account is in deficit, services may need to be reduced, paused, or privately funded until further government funding becomes available. Local Guardians will work with you to prioritise essential care needs and avoid further overspending.
Why is it important to track my own spending?
Although Local Guardians assists with budget monitoring, clients and representatives also need to keep track of account spending. This is especially important if you are arranging services directly with providers, approving extra hours, purchasing items, or submitting reimbursements. Keeping track of your own spending helps prevent unexpected underfunded invoices and private costs.
Key points to remember:
If your quarterly budget is fully used and there are no unspent funds available, your account may go into deficit.
Local Guardians cannot pay invoices where there are no government funds available.
Underfunded invoices become the client’s private responsibility.
Clients should monitor account spending and review available funds regularly.
Please contact Local Guardians before increasing services, approving extra hours, or arranging new purchases.
If care needs have increased, Local Guardians can review the situation and discuss whether further assessment or a Support Plan Review may be required.