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It poses significant challenges for RTOs to continue to provide high-quality training and ensure that students complete their courses during periods of lockdown and restrictions. The commercial prospects of many RTOs have been adversely harmed by the quarantine at home and travel restrictions implemented here and overseas. Under these circumstances, RTOs are under a great deal of pressure to meet the standards of the financial viability risk assessment (FVRA).
The market research for any courses you may be considering to offer will need to be conducted in a different manner than it has previously been done. Furthermore, a COVID-like scenario will have to be taken into consideration as part of your plan.
The Financial Viability and Risk Assessment (FVRA) is a method used by ASQA to determine if an applicant who wants to register an RTO or an existing RTO has the financial capability to provide quality training and outcomes for learners.
According to the FVRA, the following circumstances for an RTO would be regarded as “viable” if they occur:
The Financial Viability Risk Assessment (FVRA) tool, developed by ASQA, has undergone a number of updates. Financial Viability Risk Assessment Requirements 2011 is scheduled to sunset in October 2021. The National Vocational Education and Training Regulator’s (Financial Viability Risk Assessment Requirements) Instrument 2021 is now in force. It has been decided to make these adjustments in order to examine an institution’s financial viability to continue operating in the event of unforeseen situations.
The latest copy of the legislation can be found at legislation.gov.au
In short, the changes are:
Part 3 Authority
The insertion of ‘Authority’ in order to indicate the parent law. This instrument is made under subsection 158(1) of the National Vocational Education and Training Regulator Act 2011.
Part 4
In this section, definitions have been clarified in a detailed manner.
Part 6 Intent
(a) acquire the requisite assets and physical resources to deliver all qualifications on its scope of registration
(b) employ sufficient appropriately qualified staff to cover the courses for which it takes enrolments
(c) provide appropriate levels of student services to students
(d) remain in business to ensure that each student can achieve completion
(e) meet the above requirements, even in an unsure environment.
In essence, the legislation states that an RTO must be able to demonstrate its financial viability at any moment, independent of what is happening in the real world.
Part 8 Obligation to submit to assessment at any time
Section 8 of the new legislation includes requirements for auditing, which are described below.
The top 10 key takeaways
So, what are the top 10 key takeaways from the most recent legislative changes?:
Confused? Need advice? Email info@caqa.com.au or call us on 1300 266 160