REGISTERED TRAINING ORGANISATIONS Financial management for RTOs
Contents Introduction 2 Financial health assessments 4 Accounting essentials 6 Monthly financial statements 9 Debt collection 14 Early warning signs 14 Consolidation within the Education Sector 15 New registration applications 16 Fee protection 19 AQTF providers 20 ESOS providers 21 Application checklist 22 Glossary 23 FINANCIAL MANAGEMENT FOR RTOS 1
Introduction The Victorian Registration and Qualifications Authority (VRQA) is responsible for registering and regulating organisations in Victoria who wish to offer accredited vocational education and training (VET) qualifications and courses. These organisations are known as registered training organisations (RTOs). The Australian Quality Training Framework (AQTF) is the set of standards outlining nationally consistent, high-quality training and assessment services for the clients of Australia s VET system. All RTOs must comply with the AQTF standards and VET Guidelines. If an organisation wishes to provide vocational education and training to international students, as well as registering as an RTO, they will need to be registered on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS). Purpose of this Guide This Guide has been produced to assist RTOs in: gaining knowledge in relation to financial discipline reducing the risk of business failure preparing an application for initial registration as an RTO contributing to a high-quality education sector. 2010 was a year of significant legislative and regulatory change in the education sector, and this included the decoupling of education and migration outcomes. It is imperative that businesses are able to adapt quickly to such changes in order to succeed. The most successful RTOs: prepare and regularly revisit a dynamic business plan establish management information systems (MIS) that provide them with regular, accurate and timely financial reports, and enable them to assess quickly the changing landscape and make informed decisions are aware of high-risk situations and the early warning signs of cash constraints and/or business failure are prepared to change based on sound business principles recognise that good communication is vital and involves: keeping advisers well informed and seeking regular advice controlling the messages sent to students to avoid false or misleading information ensuring that the VRQA are kept informed of any changes to their business. 2 FEBRUARY 2011
The education and training industry has very little debt. It has been built predominantly on capital investment and retained earnings. Given the timeline to complete the cycle (see diagram above), a principal executive officer (PEO) needs to be receiving good advice, strong financial support, have dedication and a passion for quality education. FINANCIAL MANAGEMENT FOR RTOS 3
Financial health assessments Stage 1 From December 2009 to April 2010 Grant Thornton Australia Limited (GTAL), on behalf of the VRQA, reviewed the financial position of over 130 RTOs, visited most on site and prepared an individual report on each RTO reviewed. These reports included recommendations for improvement. Observations made and trends noted as a result of these financial reviews are outlined below: Economies of scale allowed greater flexibility and usually led to profitability. The most profitable businesses constantly reviewed class sizes, shifted teachers and students, had variable staffing and property leases, long-term agent relationships based on trust and strong debt collection policies. Businesses with well-qualified advisors had strong business discipline. Students were less committed to a lower-priced education product and are more susceptible to being poached. The internet social networking media had been used by students to communicate the message to not pay tuition fees. As a result students stopped paying tuition fees, seemingly overnight. Only one per cent of RTOs reviewed used a Solicitor Trust Account to protect pre-paid fees and almost half used those funds to pay current trading expenses. MIS were very poor and many PEOs lacked knowledge or training in how to interpret financial reports. A quarter of the industry utilised cash accounting which provided misleading financial reports and did not support timely, informed decision making. A number of businesses: were unfamiliar with the issues associated with poor payment of debtors did not realise that their students were not paying until it was too late because their MIS did not provide them with the information they required quickly enough did not know how to adequately combat the issue of non-payment of fees from students, leading to bad and doubtful debts considered withholding of completion certificates from students until they paid all outstanding debt as a sufficient and robust debt collection policy and did not consider other, more proactive options such as written and verbal reminders, student payment plans or engaging debt collection agencies. 4 FEBRUARY 2011
Stage 2 On 17 May 2010, the Minister for Immigration and Citizenship, Senator Chris Evans announced a new Skilled Occupation List (SOL). The range and number of occupations listed in the new SOL was more than halved, as compared to the previous SOL, with the intention of delivering a more tightly focused general skilled migration program. It was anticipated that this would have a significant impact on students enrolled in courses which were no longer on the SOL and was likely to affect their opportunity to apply for permanent residency. The VRQA considered that the new SOL could have a substantial impact on current and potential student enrolments of particular RTOs and, as a result, on the overall financial health of their institution. GTAL were instructed to perform Stage 2 follow-up reviews of these RTOs. These follow-up reviews by GTAL highlighted that, in most cases, management had adopted the recommendations made during Stage 1 and were experiencing the benefits. There had been a 20 30 per cent improvement in debt collection as a result of: management being more aware and therefore better equipped to deal with debt collection issues implementation of direct debit systems a far more proactive approach by businesses. Significant changes relating to the practices of using pre-paid course fees to fund trading had been made. In many cases a need to give unprecedented large refunds had convinced management a change in practice was needed. Written business plans were common and being implemented strategically. There had been a material shift in variations relating to property tenancy and increase in casual staffing, providing increased flexibility. Accrual accounting was being implemented by almost all RTOs (although education is still needed on interpreting financial data). New courses that are attractive to students and in demand were being offered. Short courses were attractive to the local market and domestic students were being actively sought. Contestable funding (ie government assisted funding) was also being actively sought. Investors were entering the market in an effort to purchase a range of providers and achieve economies of scale (see Consolidation within the Education Sector section on page 15). FINANCIAL MANAGEMENT FOR RTOS 5
Accounting essentials There are 2 basic accounting methods prescribed: cash and accrual. For accounting purposes, the best method, regardless of the type of business, is the accrual-based accounting method as cash-based accounting can distort the true operations of a business. It is therefore recommended that RTOs adopt an accrual-based accounting system. Cash accounting Cash accounting recognises revenue and expenditure only when there is a cash transaction. Accrual accounting: matches revenue in the accounts to the period when goods or services are actually provided to the customer matches expenditure in the accounts to the period when goods or services are actually received from a supplier recognises revenue and expenditure whenever a transaction occurs this can be on credit, with the actual cash to change hands at a later date recognises the situation where cash is received in advance and there remains a liability to provide goods or services in the future. Example of accrual accounting X sold a car to Y, with credit terms of 60 days, on 15 June 2010. Even though no cash was due to change hands for 60 days, X recorded the revenue in its financial accounts at 15 June because it uses accrual accounting. The income from the sale was recorded as a debtor. When Y made the payment to X on 14 August 2010 (that is, 60 days later), this debtor was reversed, as Y no longer owed X money. If X has a 30 June 2010 financial year end, accrual accounting brings their revenue forward (in comparison to cash accounting). If X uses cash accounting, the revenue from selling the car would not have been recognised until 14 August 2010 the next financial year. 6 FEBRUARY 2011
Accrual accounting outcomes Accrual accounting results in financial accounts that provide a more accurate representation of how a business is positioned at the date of the financial or management reports. The inclusion of debtors and creditors means that the financial statements show expected future cash inflows (that is, from debtors), and expected future cash outflows (that is, from creditors), as well as the cash inflows and outflows that have already occurred. This information is critical for management decision making. Accrual accounting deferred income In some cases, a business will require its clients or customers to make an upfront payment such as a deposit for goods or services. Under the cash accounting method, this would immediately be recognised as revenue. In actual fact, some or the entire amount is likely to be refundable if, for whatever reason, the good or service is not delivered to the customer. That is, when income is received in advance, there is still a liability to the business to provide the good or service to which the income relates. Under accrual accounting any advance payment would be deferred as a liability in the business s financial accounts until the good or service has been substantially delivered to the customer. The statement of financial position reflects the liability of the business to provide something to the customer in the future. Including these liabilities in management or financial accounts allows for improved resource planning by management, as all future obligations are recorded. Pre-paid student fees A student paid their fees ($5000) upfront for Semester 3 2010 on 29 June 2010. In cash accounting this income would be recognised in profit and loss for the year ending 30 June 2010 even though the costs to deliver the course to the student were not incurred/paid until the next financial year (July 2010 June 2011). This inflated the profits for the 2010 financial year and decreased the profits in the 2011 financial year. In accrual accounting pre-paid cash is recorded as a liability in the balance sheet and only recognised in profit and loss as the course costs are incurred. The inclusion of income and expenses in the same financial year provide a more accurate picture of the financial position of the organisation. FINANCIAL MANAGEMENT FOR RTOS 7
Accrual accounting summary Profit and loss and balance sheets more accurately reflect the current position of the business, and are indicative of not only historic but also future obligations and benefits. This provides more useful information when making decisions. Managing cash flows is just as critical as generating a profit, particularly for small businesses. Recording amounts due from debtors and amounts owing to creditors in the financial statements rather than as a separate list leads to better financial management. Revenues are matched to expenses, which provide a more accurate reflection of the costs associated with providing goods or services to customers during each period. 8 FEBRUARY 2011
Monthly financial statements When reviewing financial statements or management accounts, it is critical to determine which accounts are material (that is, important) as these should be focal points for management decisions. Material accounts are often business specific, that is different accounts are more critical for different businesses. It is crucial to review monthly accounts in context. In isolation, financial accounts are often little more than a list of numbers. When presented in context and compared with information from prior periods and against budgets, they begin to explain how a business is performing and how it is positioned. For example, a net profit of $15,000 for the month may seem like a reasonable result in isolation. However, when the previous three month s profits were each around $200,000, a $15,000 profit would appear to be disappointing and warrant further investigation. Profit and loss statement Not all profit and loss accounts are material, despite the fact they all contribute to the overall profit or loss of the business. There are costs that are incidental to conducting a business and these should not be the focus of managers when reviewing financial information. The focus needs to be on those expenses that can be controlled. Direct costs Direct costs are usually variable and linked to service output. For an RTO direct costs may include tutor/teacher salaries, agent commissions, tuition materials and cost of premises. Often direct costs will be a similar percentage of revenue each month and they should be reviewed with reference to revenue by asking the following questions: Are direct costs trending upwards over time, indicating inefficiencies? Can operations be streamlined to reduce direct costs over time? Overheads Overheads are the expenses that are necessary to run a business. They include marketing costs, support staff wages, maintenance, general office expenses and professional fees. It is important to look beyond the closing balances of overhead accounts at the actual transactions that have taken place. For example, an advertising campaign would drive overheads up. FINANCIAL MANAGEMENT FOR RTOS 9
Fixed costs Fixed costs are expenses that stay relatively constant regardless of the level of sales, for example the cost of renting premises, insurance, utilities and permanent employees. The advantage of fixed costs is that management knows exactly what it needs to pay. The cost is fixed regardless of business activity. The disadvantage is that costs cannot be controlled while income streams are susceptible to fluctuation. Variable costs Variable costs change with the amount of revenue earned, for example agent commissions, tuition books, casual/part-time employees. The advantage of variable costs is that they can be controlled with fluctuations in revenue and can be managed to maintain profit margins. The disadvantage is that the ultimate total cost is unknown. Flexible cost structure A flexible cost structure is one that contains more variable costs than fixed costs. Such a structure allows a business to manage its costs in line with revenue. As revenue increases, so too will expenses. If revenue declines, it allows management to cut costs and maintain a margin (or profit). Major expenses include rent, commissions and staff costs. Rent is usually fixed; however, options to create greater flexibility in relation to rent include: avoiding long-term leases entering short-term leases with an option to extend (to create flexibility in the event of student numbers declining) sub-letting premises under or not utilised. Staff costs usually include a mix of fixed (permanent) and variable (casual). Options to create greater flexibility in relation to staff costs include: changing the ratio of permanent and casual employees changing the ratio of administrative and teaching staff closely monitoring student enrolments adjusting staffing levels to cater only for the number of students currently enrolled keeping accurate student records accurately forecasting student enrolments. 10 FEBRUARY 2011
Balance sheet Asset accounts Cash accounts Cash is the lifeblood of a business. Without cash, staff and creditors cannot be paid, business operations are limited and the business becomes insolvent. A constantly deteriorating cash balance should be of significant concern to management as it indicates that further funding may be necessary. Accounts receivable Accounts receivable is one of the key working capital accounts. A continuously inflating receivables balance, which may occur if students are taking longer to pay their fees, can mean that cash inflows in the business are being stifled, threatening the solvency of the business. (Reconciliation of receivables and debt collection is discussed on page 13 14.) Related party loans Director/shareholder contributions may be represented by related party loans, being how much money has been contributed to, or drawn out of, the business by management and owners. Often owners will contribute significant amounts of capital to start a business which needs to be repaid as the business becomes successful. However, drawing too much money out of a business too early can seriously hamper the business s ability to meet its financial obligations and re-invest for growth. Liability accounts Creditors Creditors indicate the obligations of the business. A constantly increasing creditor balance can mean that the business is unable to service its debts. A low or zero creditor balance may mean that credit terms from suppliers are not being used optimally. Provisions Provisions are typically those liabilities that are contingent on a certain event happening, for example, a provision for annual leave is not paid unless a staff member actually takes annual leave. Provisions represent potential cash outflows and should be managed to ensure that all provisions such as long service leave do not become payable at once. FINANCIAL MANAGEMENT FOR RTOS 11
Pre-paid income Pre-paid income relates to fees that have been paid by customers or students in advance. (See page 21) GST/PAYGW/Superannuation payable It is critical to ensure that all tax and superannuation obligations are met, as failure to do so can attract large penalties from the Australian Taxation Office (ATO). Owners of a business using the ATO as a source of funding by not meeting its tax obligations are liable to be prosecuted for defaulting on payment arrangements. Aged debtors reports Aged debtors reports keep track of what amounts are outstanding, how long they have been outstanding for and from whom. Usually these are grouped in 30 day brackets (0 30 days, 31 60 days, 61 90 days, etc). These reports can give managers information about the likelihood of outstanding debts being received, what percentage may be doubtful (bad debts), and who the problem payers are. It allows management to actively chase payment from debtors to ensure timely collection. Large numbers of outstanding debts of more than 90 120 days can indicate issues with collection practices or overly generous terms to debtors. The total amounts outstanding should reconcile with trade debtors or accounts receivable in the financial statements. Reconciling outstanding debts to the financial statements ensures that the financials accurately reflect potential future cash inflows, and also helps ensure that all revenue has been recorded. Aged creditor reports Aged creditor reports show the breakdown of amounts payable and how long they have been payable for. Like aged debtors, these are usually grouped into 30 day brackets. These reports can help prioritise payments to suppliers when resources are limited (as is often the case). A large number of creditors in the 90+ days range is often indicative of a business that is struggling to pay its debts. Creditor reports should also be reconciled to the financial statements to ensure that the financial statements accurately reflect future cash outflows and that all expenses have been recorded. 12 FEBRUARY 2011
Bank reconciliations Bank reconciliations reconcile the bank balance shown in the financial statements with the bank balance on the bank statement and are the fundamental indicator of the efficiency of a business s financial administration. Discrepancies can arise, for example, where cheques have been made out to suppliers but the suppliers have not yet banked them, or where cheques have been received but the funds have yet to clear into the bank account. If the bank reconciliation fails to reconcile the bank balance shown in the bank statement with the balance shown in the financial statements, this can mean transactions have gone unrecorded. Cash flow forecasts Cash flow forecasts can be developed using knowledge of current debtors and creditors, as well as historic data on month-to-month expenditure. Reviewing cash flow forecasts provides information as to whether the business is going to generate net cash inflows or net cash outflows over the coming months. If there is a net cash outflow there may be a need to secure additional funding. Management of cash flow timing and costs should be reviewed to assess whether extreme levels of expenditure in certain periods can be eliminated. If a business has funding from external sources, the cash flow forecast is often just as important to the lender as a profit and loss and balance sheet. FINANCIAL MANAGEMENT FOR RTOS 13
Debt collection For RTOs there should be adequate communication with students at all times. Student uncertainty will lead to non-payment of fees. It is important that students know at enrolment: what their fee obligations are student fee and payment policies and the consequences of non-payment of fees how payment is made when payment is made what happens if payment is not made. Fee collection by direct debit is a good option as it is automatic and once set up requires little management intervention. A business should create a sound and documented debt collection policy that clearly outlines what debt collection techniques the business has implemented. These can include: mail reminders phone calls (a business may use dedicated staff) a policy of no payment = no certificate referral to a debt collection agency. Early warning signs of business failure Examples of these signs include: drop in student numbers no flexibility with staff and premises no business plan poor management information services poor cash reserves cash flow controlled by parties other than the PEO pre-paid monies being used to trade poor debtor collection policies and practices not profitable and unlikely to be in the near future not receiving timely quality advice from external advisors. 14 FEBRUARY 2011
Consolidation within the Education Sector There is a growing trend within the education sector for investors to look at consolidation of RTOs. When consolidation is undertaken, the following should be considered: the VRQA should be advised of any intention to consolidate by an RTO as soon as possible to help ensure a smooth transition of the consolidating entities the consolidated entity can demonstrate financial viability to the VRQA the PEO has control of the cash at bank that all required AQTF standards and VET Guidelines are met (for example, in relation to premises, staffing, course quality, and the fit and proper person test, etc) pre-paid revenue remains in the control of the RTO and not the parent company RTOs are aware of the increased risk in the event that cross guarantees are provided between consolidating entities. New registration applications An initial (new) registration application must be compliant with: VET Guidelines for VET providers AQTF Conditions. GTAL has been engaged by the VRQA to assess the financial aspects of an application for RTO accreditation. The assessment criteria below summarises the areas that GTAL reviews. Assessment criteria Guideline Description 1.1 1/1.4.2 Approved strategic plan/primary purpose 1.1.2 Approved business plan 1.1.3 Agent use and student recruitment information 1.2.1 Three-year certified financial plan 1.2.2 Analysis of financial viability, including a high-level assessment of the existing or related entity supporting the RTO applicant 1.3.2 Management information systems financial and student records 1.3.6 Additional requirements in relation to ownership, involvement of agents in fees collection, securing student fees until commencement 1.6.1 Mechanisms established to report significant change in control, management or operations FINANCIAL MANAGEMENT FOR RTOS 15
New registration applications Requirements for registration The following pages provide a summary of the key areas that need to be considered when preparing an initial (new) registration application. AQTF Condition 5 In addition to Guideline 1 for VET Providers, applicants must address the requirements of AQTF Condition 5. Financial management The applicant must be able to demonstrate to the VRQA that it will be financially viable at all times during the period of its registration. This is the single largest area of focus of GTAL s review of initial (new) registrations. Fee protection The fee protection mechanisms vary for AQTF and Education Services for Overseas Students (ESOS) providers. (See page 19) Engagement of a qualified accountant Preparation or review of the financial forecast model by a qualified accountant improves the accuracy and integrity of the financial projections. Primary purpose/separate legal entity When the Education and Training Reform Amendment (Skills) Act 2010 is proclaimed, legislation will require the provision of vocational education to be the primary purpose of an RTO. There are certain exemptions to this requirement, the most common of which apply if staff are being trained in a not-for-profit organisation or enterprise RTO (an RTO seeking to train its own staff). Note that applicants must apply for this exemption. Meeting this requirement of primary purpose is generally straightforward when the applicant is a start-up business or when the applicant is an existing business and intends to conduct training through a new entity (most commonly a subsidiary). When the applicant intends to run the RTO as a division of an existing business, proving education is the primary purpose is more difficult. In these instances, GTAL will extend the scope of review to include a review of the existing business. 16 FEBRUARY 2011
Ability to cover six months working capital The VET Guidelines require that the applicant demonstrates sufficient working capital to maintain operations for six months without tuition fees and/or provides an additional undertaking to cover any working capital shortfall. The test applied by GTAL essentially compares the current cash reserves of the business to the fixed costs for six months to assess adequate working capital coverage. In the event of a shortfall, the VRQA will deem one or a combination of the following as an acceptable financial undertaking to be provided by the applicant: injection of additional equity to meet the shortfall and support the business an independent commercial loan to cover the shortfall with an agreement that no principal repayment will be made within the first 12 months of the loan a bank guarantee that will cover the shortfall a third party guarantee from an individual, company or Trust with relevant documentation supporting the guarantor s ability to provide the shortfall. Preparing a financial forecast Applicants often fail to invest time, money and expertise in the preparation of financial forecasts. Due to the majority of applicants receiving student fees in advance, financial forecasts prepared on cash-based accounting do not reflect the true financial standing of the business. Generally, cash-based accounting will overstate revenue and therefore profitability, and understate liabilities and as a consequence overstate the net asset position of the business. It is recommended applications are accompanied by financial forecasts: based on accrual accounting that are fully integrated and include a profit and loss statement, cash flow statement and balance sheet provided in Excel format prepared, as a minimum, on a monthly basis for the first year. FINANCIAL MANAGEMENT FOR RTOS 17
Engaging a qualified accountant While a qualified accountant cannot categorically confirm the financial viability of an applicant s business (as the model is based on assumptions), they can: confirm that they have prepared or reviewed the financial model confirm that the financial model prepared or reviewed accurately reflects the assumptions upon which they were based assist an applicant to prepare financial projections using accrual-based accounting. Applicants should ensure that the assumptions upon which the financial projections are based: reflect accrual-based accounting are clearly defined and documented in the financial model correlate to and reflect the statements made in the business plan are accompanied by supporting documentation where possible (opening cash balance supported by bank statement and bank reconciliation). 18 FEBRUARY 2011
Fee protection A tuition assurance scheme (TAS) is a scheme approved by the Australian Government Minister for Education to ensure that overseas students receive the course they have paid for. If a provider is unable to meet its teaching obligations to a student (for whatever reason) one of the other providers in the scheme will take over teaching the student. The VET industry is unique in that it is incumbent on those who remain to carry the burden left by others who fail. There are several schemes and providers must be a member of a scheme and apply for coverage unless they are exempt (see below). Currently for providers intending to collect student fees in advance (excluding non-refundable administration fees): there is no TAS (that meets AQTF or VET Guidelines requirements) available for domestic providers Overseas Students Tuition Assurance Scheme (OSTAS) only covers overseas students who have commenced studies, leaving students not yet in Australia exposed as they are not easily relocated. For these reasons the VRQA is seeking to protect the interests of all stakeholders (students, RTOs, Australian Council for Private Education and Training (ACPET) and the education reputation of Australia). Currently, there are different fee protection mechanisms in place for AQTF and ESOS providers. FINANCIAL MANAGEMENT FOR RTOS 19
AQTF providers When the provider intends collecting student fees in advance, it must ensure that it complies with one of the following options. Option 1 The RTO is or will be (once registered) a government-administered RTO; or Option 2 The RTO holds membership of an approved tuition assurance scheme. Currently there is no approved scheme available that meets AQTF or VET guidelines requirements for domestic providers; or Option 3 The RTO agrees to limit pre-paid fees received to: <$1000 prior to commencement <$1500 for ongoing students. Note that student exposure should not exceed $1500 at any point; or Option 4 The RTO holds an unconditional bank guarantee from an Australian bank. This is likely to require cash reserves or equity in property. It would require a Trust to hold the guarantee and may be cost prohibitive for most RTOs; or Option 5 The RTO can demonstrate an alternative measure of equal rigour approved by the VRQA. Currently the only measure approved by the VRQA is to hold any monies in excess of Option 3 in a Solicitor Trust Account. 20 FEBRUARY 2011
ESOS providers When the provider intends collecting student fees in advance from overseas students prior to commencement it must ensure that it complies with one of the following options: Option 1 The RTO has implemented a TAS and pre-paid fees are held in a Solicitor Trust Account. Option 2 The RTO has implemented a tuition assurance scheme and no fees are paid prior to commencement. Option 3 The RTO does not charge any pre-paid tuition fees (a non-refundable administration fee can be collected). When the provider collects student fees in advance from overseas students, these pre-paid fees are covered by OSTAS after the student commences. Maddocks Lawyers, in conjunction with the VRQA, have developed a model Solicitor Trust Deed that caters for both AQTF and ESOS providers. This model Trust Deed is available free of charge and can be sourced from the VRQA. FINANCIAL MANAGEMENT FOR RTOS 21
Application checklist Before submitting an application for initial (new) registration, an applicant must ensure that as a minimum: the application is complete and addresses the specific requirements of VET Guideline 1 and AQTF Condition 5 strategic, business and financial plans have been approved by the board or governing body of the applicant the primary purpose of education has been proved there is consistency between the business and financial plans start-up capital investment is sufficient fixed costs can be covered for a period of six months without any revenue financial forecasts are based on accrual accounting financial forecasts make a distinction between profit and loss and cash flow financial projections have been prepared or reviewed by a qualified accountant (as required by AQTF Condition 5) key areas of MIS and change in circumstances requirements have been addressed student fee protection mechanisms have been established for existing providers: ATO payments are up to date. 22 FEBRUARY 2011
Glossary Australian Quality Training Framework (AQTF) ATO Balance sheet Casual employee Fit and proper person test GTAL GST MIS PAYGW Permanent employee Principal Executive Officer the set of standards outlining nationally consistent, high-quality training and assessment services for the clients of Australia s VET system Australian Taxation Office a snapshot of a business s financial condition comprising assets, liabilities and shareholders equity at a specific moment in time, usually at the close of an accounting period an employee who usually works on an irregular basis and who may or may not be offered work which they have the option of accepting or refusing identifies any past behaviour of a provider, associate or high managerial agent of a provider which may impact on the suitability of the provider to be registered to provide education and training to students Grant Thornton Australia Limited broad sales tax of 10 per cent on most goods and services transactions in Australia Management Information Systems stands for Pay As You Go Withholding, a tax that an employer may be required to withhold from employees and others and send to the Australian Taxation Office an employee who has been hired with the intention of an ongoing employment relationship or for an indefinite period person who has executive responsibility for the operation of the organisation FINANCIAL MANAGEMENT FOR RTOS 23
Profit and Loss RTO SOL Solicitor Trust Account Solicitor Trust Deed Solvency Tuition Assurance Scheme (TAS) VET VRQA profit and loss statements are generated monthly, quarterly or annually and summarise the revenues for a period and subtract the expenses incurred for the same equivalent period to arrive at the profit or loss for the business Registered Training Organisation Skilled Occupation List transaction account used to hold money in trust on behalf of students document conveying title to trust property and setting out the purpose for which the trust has been formed ability to pay debts as and when they fall due scheme approved by the Australian Government Minister for Education to ensure that overseas students receive the course for which they have paid Vocational Education and Training Victorian Registration and Qualifications Authority 24 FEBRUARY 2011
State of Victoria 2010