News: Financial woes compounded by the pandemic, DSA opts for voluntary administration

Financial woes compounded by the pandemic, DSA opts for voluntary administration

DSA named KPMG as its administrators following its decision to transition towards voluntary administration. This was following the DSA’s severe financial challenges that were aggravated during the pandemic

Disability Services Australia has decided to move into voluntary administration after going through a number of financial upheavals compounded by the Covid-19 pandemic. It has appointed KPMG as administrators recently. Been in operation since 1957, the DSA has imparted munificent services which includes at-home support and employment assistance to people with a disability. More than 1,600 people across New South Wales work for the organisation. It supports and provides care to more than 1,500 participants with a disability.

Leisa Hart, Chief Executive of Disability Services Australia said that this decision assured their participants with continuity of care and services. The DSA and KPMG team will work together to continue to support the participants and employees during the administration process.

Gayle Dickerson, restructuring services partner at KPMG affirmed that as the internal assessment process was undertaken, KPMG will cooperate with the existing management team to ensure deliverance of all services just like ‘normal’ times.

Ms. Dickerson reassured that the first priority of DSA is to ensure the welfare of its participants. For that, DSA is holding discussions with employees, participants and their guardians, families and government bodies. Its motive is to maintain the quality of care and health and wellbeing of participants during the administration process.

KPMG’s talks with stakeholders will be held in the coming days. A meeting for creditors is scheduled next month.

Shadow Minister for the National Disability Insurance Scheme (NDIS) Bill Shorten blamed the federal government for the problems that DSA is facing. He claimed that DSA’s insolvency can be attributed to the 10% cuts by the Morrison government to providers of supported independent living.

Linda Reynolds, Minister for the National Disability Insurance Scheme maintained that the government is committed to support the NDIS participants. Protocols have been put in place by the NDIS Quality and Safeguards Commission and the NDIA to ensure that participants receive continuous support even after the withdrawal of a provider.