As of 1 October 2013, organisations applying for registration with the Australian Skills Quality Authority (ASQA) must undergo a new procedure for assessing their financial viability (i.e. their ability to generate sufficient income to meet their business’s operating expenses and financial obligations, as well as providing potential for future growth).
In the past, ASQA contracted assessment out to an independent assessor as part of the application process and any extended processing timeframes. The new method, however, will require applicants to complete and submit the Financial Viability Risk Assessment Pack before/during their application if they are:
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Seeking registration as a registered training organisation (RTO)
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Registering under the Education Services for Overseas Students (ESOS) Act as a CRICOS provider
The information given in the assessment pack will help ASQA manage the financial viability risks of the providers it indexes, and it will ultimately inform ASQA’s decision to either accept or reject an organisation’s registration.
Requirements for Completing and Submitting the Assessment Pack
One of the expected benefits of the new assessment method is expedited processing times for initial applicants. It will also provide the applicant with A) a realistic understanding of what financial measures are required to become an RTO and B) an independent assessment of their proposed business’s sustainability.
Under the new requirements, the applicant must therefore ensure that the following stipulations are met when filling out the assessment pack:
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Complete assessment with a “Nominated Accountant” – the accountant appointed by an organisation applying for registration with ASQA. He or she must either be registered with the Australian Securities and Investment Commission as an auditor OR be a member of at least one of the following: CPA Australia, or The Institute of Chartered Accountants in Australia.
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Answer a series of questions about the organisation’s financial viability, including questions about forecasted financial projections, business ratios, and accounting systems
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Provide forecasted financial information for the next 1-2 years
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Provide a declaration certifying that all information given is valid
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Provide a statement from the nominated accountant that certifies the financial viability of the new business body
Applicants must submit their completed pack (including the required certificates) either before submitting an application for initial registration—but no sooner than 30 days prior to submitting the application—or at the same time as submitting their application for initial registration (as long as the figures provided in the pack were not completed longer than 30 days prior to submission).
All information should be scanned and submitted electronically to financialviability@asqa.gov.au within 30 days of the dates of signing the certificates in the pack. IMPORTANT: If an application is submitted for registration without a completed assessment pack, it will be determined “incomplete” and the applicant will have ten days to submit the necessary information before ASQA rejects the application. The application fee will not be refunded.
To supplement the assessment pack, ASQA may require further evaluation of an organisation’s financial viability at any time throughout the registration process. As a condition of their registration, approved organisations must comply with any ongoing financial viability risk assessment that ASQA deems necessary.
Who Must Complete the Assessment Pack?
Remember: only organisations who are applying for the first time are affected by the new assessment procedures. If you have already submitted an application or plan to by 1 October 2013, then you will not be affected by the changes. Naturally, the same goes for providers who are already ASQA-registered.
Those who intend to apply for registration with ASQA after 1 October 2013 should expect to complete the assessment pack if they are registering as either an RTO or a CRICOS provider.
For more information regarding the Financial Risk Assessment Pack, please refer to the ASQA website. If you have questions or concerns, the ASQA Info Line is available 9:00 AM – 7:00 PM AEST, Monday through Friday: 1300 701 801… or you may e-mail your enquiry at any time to enquiries@asqa.gov.au.
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