Skills for Victoria Contract Compliance Audit Report Warehouse Training Australia 20947 Version FINAL Date 23 October 2012 Circulation Department of Education and Early Childhood Development Glenn Gardiner, Director, Warehouse Training Australia
TABLE OF CONTENTS 1. EXECUTIVE SUMMARY... 1 1.1 Introduction... 1 1.2 Objective and Scope... 1 1.3 Summary of Findings... 2 1.4 Next Steps... 2 2. DETAILED FINDINGS... 3
1. Executive Summary 1.1 Introduction The Victorian Training Guarantee (VTG) is an entitlement to government subsidised training for eligible individuals. Under delegation from the Victorian Skills Commission, the Department of Education and Early Childhood Development (the Department) contracts Registered Training Organisations (RTOs) to deliver training to eligible individuals under the Skills for Victoria Program. In accordance with its Contract Compliance Audit Strategy, the Department undertakes a contract compliance audit program to ensure the contracted RTOs are complying with the terms and conditions of their Service Agreement(s). The Department conducts these audits using contractors from a panel of service providers. Protiviti conducted the contract compliance audit at Warehouse Training Australia (WTA) on 10 and 11 October 2012. 1.2 Objective and Scope The objective of the contract compliance audit was to assess the business processes and internal control environment employed by the RTO to achieve compliance with its contractual obligations under the Service Agreement. The scope of work focussed on: internal audit activity undertaken by the RTO to self assess its compliance against the Service Agreement; processes in place for eligibility assessment, student enrolments, training plan development, training delivery; maintenance of records to evidence compliance (e.g. eligibility, enrolment forms, training plans/delivery, evidence of participation) and including use of the RTO s Student Management System (SMS) and input of relevant data into the Skills Victoria Training System (SVTS); processes for assigning responsibilities and communicating contractual obligations under the Service Agreement to relevant persons within the RTO; and segregation of duties for processes examined. Transactional compliance testing was also performed to identify specific areas of non compliance with the Service Agreements (as appropriate) through sample testing of records associated with student eligibility, enrolment, training plan development, training delivery and reporting and fee concessions and fee waivers. This audit included a review of all available evidence of participation (EOP) provided by the RTO during the audit to meet the requirements of Schedule 1, clause 3 the 2011 (including SAN 2011-05) and 2012 Service Agreement, as applicable. The RTO was provided with the opportunity to present all EOP for each criterion for consideration in line with the Service Agreement. Where issues have been identified, the results have been incorporated into the findings set out in Sections 1.3 and 2 of this report. 1
1.3 Summary of Findings The following positive practices were identified during the audit: Clear segregation of duties exists within each of the core processes of eligibility, enrolment, training plan development and training delivery. Clear policies, procedures and flowcharts are in place including for student eligibility/enrolment, training plan development and uploading compliant data from VETtrak to SVTS. The following control weakness was identified which may impact the RTO s ability to comply with the Service Agreement: Ref Area Control Weakness 2.1 Student Enrolment Relevant evidence of eligibility was not retained by the RTO for all eligible individuals enrolled post 8 February 2012. Further detail of the control weakness and the agreed management action plan to it are included in Section 3 of this report. 1.4 Next Steps In accordance with Clause 11.4 d) of the 2012 Service Agreement, where an Agreed Management Action Plan has been developed the RTO must advise the Department in writing (including submitting appropriate documentation as determined by the Department) of compliance with and implementation of the auditor s recommendations and/or management action plan within six (6) months of the date of this report. 2
2. Detailed Findings The table below sets out the control weakness identified and agreed management action plan: Reference Control Weakness Management Action Plan Student Enrolment 2.1 Relevant evidence of eligibility was not retained by the RTO for all eligible individuals enrolled post 8 February 2012. Finding We identified that relevant evidence of eligibility had not been retained by the RTO for all eligible individuals enrolled post 8 February 2012. While Management were aware of the Service Agreement Notification (SAN) 2012-04 and these requirements had been communicated to relevant staff, the enrolment form was not updated to include the full requirements of the SAN. For example, both samples tested for the business process audit had course commencement dates after the release of the SAN, but had no student declaration of the number of government subsidised courses they had commenced, were scheduled to commence in 2012, or were currently undertaking. This was also identified during the transactional compliance audit, when we identified that 11 of the 40 samples tested had post February 2012 course commencement dates and also had no student declaration of the number of government subsidised courses they had commenced, were scheduled to commence in 2012, or were currently undertaking. Agreed Action WTA will ensure that relevant evidence of eligibility is retained by the RTO for each eligible individual in accordance with Service Agreement requirements. Responsible Person April Alvarez, General Manager Implementation Date 31 December 2012 Contract Reference 2012 Service Agreement, Schedule 2, Section 1.5 Service Agreement Notification 2012-04 Impact Not retaining evidence of eligibility for each individual deemed eligible has led to non-compliance with the Service Agreement. 3