FAQ s VRQA Guidelines for VET providers (last update 28 June 2010)

FAQ s VRQA Guidelines for VET providers (last update 28 June 2010) GENERAL Why has the VRQA developed these guidelines? On 12 September 2009 the then Minister for Skills, the Hon. Jacinta Allan MP, directed the Victorian Registration and Qualifications Authority (VRQA) to develop guidelines to strengthen the quality of VET (vocational education and training) providers. In particular, the Minister directed the VRQA to develop guidelines which: clarify and strengthen the existing criteria and minimum standards for registration of VET providers including those in the 2007 Australian Quality Training Framework (AQTF) standards; clarify and strengthen the existing criteria for the approval of Education Services for Overseas Students (ESOS) providers delivering in the VET sector; and impose additional criteria or standards on VET providers and ESOS providers delivering in the VET sector, which satisfy one or more of the following: o ensure a quality education to students; o ensure providers operate in accordance with reputable commercial and financial standards; and o ensure an appropriate standard of care to students. Under what authority can the VRQA issue such guidelines? The Education and Training Reform Act 2006 gives the VRQA power to issue guidelines, under Section 4.3.11 (2). These guidelines have been specifically aligned to the prescribed minimum standards for registration or sub sections (a) to (e) of Section 4.3.11(1) of the ETR Act 2006, namely: a) Student learning outcomes and welfare services - see guideline 4; b) Student enrolment records and certification - see guideline 3; c) Teaching, learning and assessment - see guideline 5; d) Governance, probity and compliance with statutory requirements - see guideline 1; and e) Quality assurance, review and evaluation processes see guideline 2. Why do I have to comply with these guidelines? Under the Education and Training Reform Act 2006, existing and prospective RTOs are required to comply with any guidelines issued by the VRQA. How do these guidelines relate to the AQTF 2007/2010 Standards? These guidelines have been developed alongside the AQTF 2010 standards and have been designed to clarify and strengthen the AQTF standards. Do these guidelines replace the AQTF 2007/2010 standards in Victoria? No, these guidelines are in addition to the AQTF standards. Section 4.3.16 (2) of the Education Training Reform Act 2006 specifically states that in registering an RTO the VRQA must apply the AQTF standards as a minimum. 1

In what ways do these guidelines enhance the AQTF2007/2010 Standards? The Victorian guidelines enhance the AQTF2007/2010 standards in three major respects. An organisation seeking registration as an RTO must now demonstrate: 1. business and financial viability 2. quality management in regard to: a. educational qualifications and experience of Chief Executive Officer (CEO) / Principal Executive Officer (PEO) and senior management group b. educational quality assurance process by way of independent industry/academic board or individuals c. external moderation/validation of assessments 3. how they will manage student welfare and safety issues. If I wish to register a new RTO do I have to satisfy the VRQA that I meet the requirements of both the AQTF standards and the VRQA guidelines? Yes. If the principal place of business for all or most of the training operations will be in Victoria, then the organisation must register as an RTO with the VRQA. In doing so it must: demonstrate compliance with the nationally agreed standards set out in the Australian Quality Training Framework (AQTF 2007) Essential Standards for Registration. demonstrate compliance with the VRQA Guidelines for VET Providers. Will there be any standard templates issued in regard to the new VRQA guidelines, and when will these be available? The VRQA will not be developing standard templates in relation to these guidelines. The information from existing and potential RTOs is that they would prefer their own format for addressing the guidelines. In this way they can convey more readily their individual differences, and also demonstrate their early commitment to quality documentation and processes. What steps does the VRQA take in considering my application for registration as an RTO? The VRQA takes a number of steps in determining the outcome of any application for registration as an RTO. In most cases for domestic (not ESOS) registration the steps are as follows: Step 1: The VRQA receives your application comprising AQTF Form A Registration fees must be paid at this point for your application to proceed Step 2: The VRQA undertakes a risk assessment of the application documents, and seeks further information from you including: strategic plan business plan financial plan and governance structures Step 3: Once satisfied that all financial viability and governance requirements are met, 2

the VRQA appoints an auditor. Step 4: The VRQA provides relevant information and direction to the auditor based on the initial risk assessment. Step 5: The VRQA auditor organises a time for audit and notifies the VRQA of the confirmed date. Step 6: The VRQA auditor conducts the audit against AQTF standards and VRQA guidelines on agreed date, unless the VRQA advises otherwise. Step 7: The VRQA auditor prepares audit report and gains signature on acceptance agreement from the applicant. Step 8: The VRQA auditor submits the audit report and the signed acceptance agreement to the VRQA. Step 9: The VRQA considers the audit report. Step 10: If necessary, the VRQA advises the applicant of any further action required to meet registration requirements. Step 11: If the applicant is successful, the VRQA issues appropriate certification and arranges for entry onto the National Training Information Service (NTIS). I wish to deliver training in Victoria by gaining registration with the National Audit and Registration Agency (NARA) not the VRQA. Do the VRQA guidelines apply to me? Yes. Some RTOs who operate in more than one State or Territory are able to seek registration as an RTO through NARA, rather than through the VRQA. It is important to note that NARA undertakes these registrations of Victorian based RTOs under delegation from the VRQA, and must assess RTOs against the relevant Victorian RTO criteria, including the VRQA Guidelines for VET Providers. How will the VRQA guidelines apply to existing RTOs? The guidelines have applied to all new applications for registration from 1 January 2010, and apply to all RTOs from 1 July 2010. During June 2010, a Statutory Declaration (PDF - 130Kb) was mailed to all existing VET providers. The Declaration requires the Executive Officer of an existing RTO to declare that there are procedures in place at 1 July 2010 that enable the RTO to demonstrate compliance with the Guidelines. The signed Statutory Declaration is to be returned to the VRQA in the Reply Paid envelope provided, or mailed to the VRQA, Reply Paid 2317, Melbourne, VIC, 8060 by no later than Friday 16 July 2010. From July 2010, the Guidelines will become part of the VRQA audit requirements. Guideline 1 Governance, probity and compliance with statutory requirements 1.1 Does the business plan need to include detailed financial information? The VRQA has separated the requirements of the business plan from the financial plan. Detailed financial information will be required as part of a financial plan which is a stand alone document that is based on information and direction expressed in the business plan. See 1.2 for further information on financial plan details. 3

1.1 What do I have to include in a workforce development plan? A workforce development plan identifies current and possible future jobs in the RTO, and outlines the processes planned for the training and professional development of individual staff members. At a minimum, a workforce development plan would include; Initial staffing levels (nature of position, number of positions, proposed work load) for each of three categories across the RTO: o Teaching - by qualification sought for scope of registration, o Student support services o Administration - everything that is not teaching/student support services. Proposed staffing levels for each staffing category at end of year 1, year 2, and year 3 - not needed for a one person RTO Strategies to attract and retain staff members - not needed for a one person RTO Annual strategies and targets for professional development of all three categories of staff not needed for a one person RTO. In a complex organisation, a workforce development plan includes the policies, strategies and activities within workforce planning, human resource management and capability development. The workforce development plan also outlines the key activities, accountabilities and resources required to meet the strategic goals of the RTO. 1.2 What financial details need to be included in the financial plan, and what format should I use? The VRQA has approved financial health guidelines for organisations approved to provide courses to overseas students. The financial health guidelines can be downloaded from the VRQA website under the section VET > Audit and compliance. Although these financial health guidelines are written with existing ESOS providers in mind, all organisations seeking registration as an RTO are advised to take into account the requirements of these guidelines in developing their financial plans. In particular, any financial plan presented for the purposes of registration should include, but not be limited to: 1. Information about the current financial position of the organisation seeking registration as an RTO. For those organisations seeking ESOS approval, the following information must be included: Details of any education and migration agents that have more than a 5% ownership in the operations of the RTO; Details of the extent of the involvement of agents in collecting, managing and refunding student fees; and Mechanisms for securing students fee payments for the period from receipt of funds to the students commencement of studies. 2. Information as to proposed student enrolments, consistent with information in the business plan. 3. Assumptions underlying forecasts and the grounds on which such assumptions have been made. 4

4. Any significant opportunities and risks with respect to any such forecasts. Financial forecasts for the first three years of operation as an RTO, provided on a quarterly basis. 1.2 What is meant by having sufficient working capital to operate for at least six months without tuition fees? This financial requirement means that you have sufficient funds available to support the first six months of operation, and that this has been calculated on the assumption that no students will have commenced training in the first six months, irrespective of how many students you plan to enrol. These available funds have to be sufficient to meet fixed property costs and outgoings as well as all other operational costs including administration and management salaries/wages for the initial six month period. Where an organisation has been operating for some time, the organisation needs to demonstrate that it has sufficient working capital to support its ongoing operations (including any growth in operations). 1.2 What happens a year down the track if financial forecasts are not met? The VRQA will be concerned if the financial forecasts are not met and if the financial viability of the RTO and enrolment status of students is threatened, or if the RTO is assessed as being in poor financial health following a financial health audit or review. If the financial viability of the RTO and enrolment status of students is threatened, the RTO is obliged to notify the VRQA. The VRQA may undertake an independent financial health assessment of the RTO. 1.2 What happens if the financial information that I presented at the time of my application is out of date by the time the audit for registration is scheduled. The VRQA will give you the opportunity to submit updated financial information, if necessary. 1.2 I wish to register as an enterprise RTO only providing training to my own employees and suppliers, so most of the financial requirements do not seem to relate to us. In reaching an assessment of the financial viability of a relevant RTO, the VRQA may have regard to any matters it considers relevant to that assessment. If seeking to register as an enterprise based RTO you will be required to provide sufficient financial information to show that the enterprise organisation is financially viable in its own right, and that the RTO operations will be sufficiently supported financially or that they are financially viable through other means. 1.3 Must my RTO be a company, or can I be a sole trader with an ABN? Under the VRQA Guidelines, a sole trader cannot be registered as an RTO in Victoria. Any RTO seeking registration in Victoria from 1 January 2010 must be a company that is registered in Australia or otherwise be an incorporated body in receipt of government funds. 1.3 Can a company registered in another State or Territory register as an RTO in Victoria? Yes, provided three conditions are met. First, there must be an actual physical address for the organisation, and not a PO Box for the serving of notices to the company. Secondly, at least one director, CEO or PEO must have their principal residence in Victoria. Thirdly, the majority of training must be delivered in Victoria. 1.3 Can an RTO that is registered in another State and with all directors having their 5

principal residence in that State, gain ESOS approval to operate in Victoria? Yes, provided a PEO for the Victorian operation has their principal residence in Victoria, and that the senior management group of the RTO have appropriate academic qualifications and educational experience, and can be shown to exercise effective management of its operations in Victoria. 1.3 Can a RTO whose directors have their principal residence in another State, gain approval to operate in Victoria? Yes, provided a PEO for the Victorian operation has their principal residence in Victoria, and that the senior management group of the RTO have appropriate academic qualifications and educational experience, and can be shown to exercise effective management of its operations in Victoria. 1.3 Do I need a Police Check if I have a valid Working with Children Check? Yes, both these requirements are independent of each other. 1.3 What does it mean when 1.3 of the guidelines refers to students records management system and administration capacity? There are many commercially available and in-house purpose designed student records management systems that can be used to effectively manage student records. For the purposes of registration as an RTO an organisation has to demonstrate that it not only has a student records management system, but that there is also a person(s) within the organisation with an appropriate and defined role, the necessary allocation of time, and the necessary skills, knowledge and training to operate the student records management system effectively and consistent with the requirements of any educational standards and Commonwealth and State legislation, regulations and guidelines. 1.3 Can my RTO use a web based student or other information management system provided by a third party service provider? Yes, provided there are clear arrangements that allow you to access or otherwise provide access to stored RTO management information. You cannot use a web based system where the service provider is legally able to deny you access to previously stored information or to deny the VRQA access to such information without further payment. 1.3 Must my student records management system be compliant with the AVETMISS requirements? Yes, all RTOs must now have a student records management system that provides data that is consistent with the Australian Vocational Education and Training Management Information Statistical Standard (AVETMISS) requirements. The National Centre for Vocational Education Research (NCVER) has produced an enrolment form example in the How to Become AVETMISS compliant section at http://www.ncver.edu.au/ 1.3 What is meant by a trainer skills matrix A trainer skills matrix details the following information for each unit of competency that a trainer is involved in delivery and assessment Title and code of qualification/accredited course Title and code of unit Vocational qualifications/units of competency possessed by trainer/assessor that are the same as or equivalent to the unit of competency Industry experience of trainer/assessor that is directly related to the unit of 6

competency that shows relevance and currency and for some Training Packages the period of relevant industry experience post qualification The trainer skills matrix is signed by the trainer/assessor as being true and correct. 1.4 Are each of the CEO, PEO and members of the senior management group required to have academic qualifications and also educational experience? No. It is, however, expected that collectively the CEO, PEO and members of the senior management group will have academic, industry and educational experience relevant to leading, managing and operating an RTO. It is not possible for the RTO to be registered if collectively the CEO, PEO and senior management group have no previous relevant educational experience. It is similarly not possible for an RTO to demonstrate that the primary purpose of the RTO is education - a necessary requirement to gain ESOS approval - without the CEO, PEO and senior management group being able to demonstrate strong educational experience. 1.4 I propose to be a one person RTO with a limited scope of registration based on my personal qualifications and industry experience. Do I need to have any previous educational experience of working in an RTO? To be registered as a one person RTO you will need to be a qualified trainer and assessor, with the minimum qualification being the Certificate IV in Training and Assessment. You will also need to have current and relevant industry qualifications and experience consistent with the requirements of the Training Package qualification or units of competence proposed for your scope of registration. It is preferable if you have had some experience working in an RTO, but this is not a necessary requirement for registration. 1.5 Are employees prohibited from membership of advisory/academic/industry boards? The aim of this guideline is to ensure that the membership of boards is not made up solely of people who have a financial interest in the RTO as a company or are reliant on the company ownership for their on-going employment. 1.5 Do my advisory/academic/industry board members have to provide their services for no cost/payment in order to be considered to be independent of ownership and employment? No. Members of advisory/academic/industry boards can be paid for their services in much the same way as directors of companies and members of government boards and committees are paid sitting fees. 1.6 What are the significant changes referred to in regard to control, management and operations of an RTO that must be reported to the VRQA? Significant changes include, but are not limited to, changes in: Company ownership PEO, CEO Contact details of PEO, CEO Senior management personnel responsible for delivery and assessment of education and training Chairs of academic/industry boards Facilities addition of new facilities, cessation of existing facilities Financial viability 7

Financial guarantor arrangements Membership of ASTAS/OSTAS Mechanisms for securing student fee payments prior to commencement of studies Off shore delivery introduction/cessation Arrangements with overseas accreditation/registration bodies Articulation/recognition arrangements with overseas education providers For ESOS providers, there are additional changes which must also be reported: Duration of program delivery On-line delivery arrangements, particularly the introduction of on-line delivery that was not approved at registration Percentage of company owned by migration agents Student tuition fees or refund arrangements Guideline 2 Quality assurance, review and evaluation processes 2.1 These guidelines require me to establish mechanisms to ensure that moderation/validation of student performance is undertaken with parties external to the operation of the RTO, to identify moderation/validation parties, and to have a schedule or plan of moderation/validation activities. What does the VRQA mean by moderation/validation, and who would be acceptable moderation/validation parties external to the organisation? Moderation/Validation is where groups of assessors get together to evaluate assessment methods, assessment procedures and assessment decisions. The primary focus is on the tools, processes and outcomes of assessment, and moderation entails an agreement about their use and effectiveness in meeting the requirements of the related units of competencies (or clusters of units of competency). In this regard, acceptable moderation/validation parties comprise people who meet the National Quality Council (NQC) requirements for an assessor in relation to the assessments being moderated/validated. Such people can be found in TAFE Institutes, Universities, RTOs, industry associations, Industry Skills Councils (ISCs), Industry Training Advisory Boards (ITABs), Curriculum Maintenance Manager (CMM) roles, government agencies, external members of RTO advisory/governance bodies/boards, communities of practice, VET networks, private consultancies and a wide range of private enterprises and companies. All people except those employed by the RTO to deliver and assess any units of competency from any of the qualifications in the Training Package being moderated/validated are considered to be external parties. A person employed by the RTO to deliver and assess qualifications in the same Training Package does not meet this requirement. However a person can be considered to be an external party, even though they are employed by the same enterprise or organisation or RTO, if they do not have a direct role in the delivery and assessment of the Training Package being moderated/validated. 2.1 Why do I have to engage in external moderation/validation when my RTO will be a commercial for profit organisation and any external moderation/validation activities will 8

compromise my intellectual property or copyright by exposure to my competitors? In a commercial environment, moderation/validation activities would otherwise be described as benchmarking. The concept and construct of benchmarking and the associated protocols, practices and confidentiality arrangements associated with its operation are well established. The VRQA is confident that all RTOs will be able to undertake validation/moderation activities with selected partners without compromising intellectual property or copyright. Providers may wish to seek advice and assistance concerning this matter from industry associations such as the Australian Council for Private Education and Training (ACPET). 2.1 How many external moderation parties must I have for each moderation/validation exercise? At least one is required. 2.1 I plan to have 14 qualifications from three different training packages on my scope of registration. What is the extent of the moderation /validation that I must show at the time of registration, and how often must such an exercise take place? It is expected that you will have moderation/validation arrangements for each training package, and that you will have a plan to conduct external moderation/validation exercises for all units of competence (or clusters of units of competence) being offered across all qualifications on your scope of registration. This validation/moderation will need to occur at least once during your five year period of registration, and some validation/moderation activities should occur in each 12 month period. 2.2 Do I need to purchase a software package to detect plagiarism in order to meet the requirements of the guidelines? No. You are required, however, to document what you consider to be cheating and what you consider to be plagiarism. You need also to show how you will go about testing students work for plagiarism. There is software to detect plagiarism at the simplest level which is available as downloadable freeware. How you will manage students caught in cheating and plagiarism needs to be described. This information also needs to be conveyed clearly to your students. Guideline 3 Student enrolment records and certification 3.1 Can I charge international students a fee for additional tuition, assessment or an administrative service if it is not included in the acceptance agreement? No. All fees and charges that you wish to levy on students must be included in the acceptance agreement. 3.2 Are students entitled to a Statement of Attainment if they leave my RTO owing me money? Students must be provided with a Statement of Attainment for completed units if tuition fees relating to those completed units have been paid. Where there remains unpaid tuition fees that are directly related to a completed unit, an RTO may withhold the Statement of Attainment only for those units for which tuition fees remain outstanding. 3.2 Do I need to issue a Statement of Attainment at no cost every time a student makes a request? 9

No. A Statement of Attainment is only issued at no cost to the student on withdrawal, cancellation or transfer prior to completing the qualification for which they are enrolled. In other words, when the student leaves the RTO. At other times, a fee may apply but this needs to be clearly stated and included in the acceptance agreement. 3.2 Instead of issuing a Statement of Attainment, can I issue a Certificate for a full qualification if the units meet the requirements for the award of a lower level qualification? Generally No. A lower level qualification can only be awarded if the student is already enrolled in that qualification. For international students this means that they must have a Confirmation of Enrolment (CoE) for the lower level qualification. 3.4 How do I know which is the best option to choose for the protection of pre-paid fees? Before choosing either of the options with regard to protection of students fees, an RTO should seek professional advice from an appropriately qualified person such as an accountant with respect to the most appropriate option and how to effectively operate the RTO in accordance with the selected option. 3.4 Do I have to be a member of a domestic tuition assurance scheme or obtain tuition fee insurance or have a bank guarantee if I only collect small amounts of money from students in advance of providing tuition- say less than $1000? Yes. You must always have some form of security for student tuition fees paid in advance. Guideline 4 Student learning outcomes and welfare services 4.1 What does a course related exemption mean in regard to the limit of eight hours training per day? Providers may apply to the VRQA for an exemption from this restriction where the delivery of training being proposed will be outside the stated limit when: It is essential to the delivery of the course It is consistent with established industry practice e.g. bakeries/aviation /dairy etc It is supported by the training package, and The various potential safety and welfare issues have been addressed satisfactorily. 4.1 I have a group of international students who have all signed a petition requesting that I schedule classes for 10 hours per day on two consecutive days. As an RTO I want to respond to client needs. Can I do this? No. The VRQA has specifically indicated in the guidelines that RTOs are not permitted to schedule more than eight hours of classes in any one day. Scheduling of classes for periods longer than eight hours in any one day is considered to have a deleterious effect on student welfare and general educational opinion is that such an extended period of study has an impact on student performance and competence and in practical situations on student safety. Requests of this nature from students can also mean that the primary interest of and benefit to the student is not one of education and training which is the purpose of their visa. 4.2 I am a large provider offering many industry courses that involve full-time students attending classes outside of 0800 and 2200 hours. Do I need to apply for an exemption 10

for each specific qualification? No. RTOs can apply for one exemption which lists all the qualifications requiring scheduled classes outside the allowable hours. 4.4 As an RTO, how can I take responsibility for the welfare and safety of my students once they have left my premises or before they get there? The VRQA is not requiring an RTO to take responsibility for the safety and welfare of students once they have left the RTO s premises or before they get there. Certain requirements, however, are being applied in the case of those RTOs who plan to operate after 1800 hours or at weekends; or have facilities that are located in industrial areas, or are remote from built up areas, or further than 500 metres from regular scheduled public transport; or have substantial surrounding gardens and car parking areas. In such cases the RTO will be required to: detail the security /safety measures to be taken to maximise student security and safety in attending and in travelling to/from the provider s premise; and demonstrate that information about the security/safety measures is available to students prior to and after enrolment. These requirements are generally consistent with the everyday practices of a very large number of Australian companies and existing RTOs concerned with the safety and welfare of their employees and students. The VRQA will not register an organisation as an RTO if it has failed to take into account any issues of safety and welfare of students. 11