42
APPROVED COURSE PROVIDER APPLICATION GUIDE August 2017
APPROVED COURSE PROVIDER APPLICATION GUIDE August 2017
CONTENTS
Part A : Guidance for Applicants seeking to apply to become a VET Student Loans approved course provider 1
1. Introduction 11.1. Background 1
2. Application for approval as an approved course provider 22.1. How to Apply in the form approved by the Secretary 2
3. Submission of applications 23.1. Applicant Submission Outline 23.2. VSL Workbook 23.3. Application Guide 23.4. Amending the Application Guide 33.5. Questions 33.6. Registering your interest in becoming a VSL approved course provider 33.7. Applications must be submitted using HITS 33.8. How to obtain HITS credentials 43.9. Naming convention 43.10. Authorised contact person 43.11. Application Fee 43.12. Closing Time 53.13. Important dates 53.14. Late lodgement policy 6
4. Course provider requirements 64.1. VET Student Loans Act 2016 64.2. Listed Course Providers 6
5. Assessment of applications 65.1. Conditions for assessment 65.2. Assessment 75.3. Clarification 7
6. External Dispute Resolution Scheme 76.1. Approved external dispute resolution scheme 7
7. Tuition Assurance 77.1. Approved Tuition Assurance arrangement 7
8. Approval as an Approved Course Provider 78.1. Approval 78.2. Conditions 8
9. Policy and Law 89.1. Ethical dealing 89.2. Application of law and Commonwealth policy 89.3. Applicant’s Sole Risk 9
9.4. Conflicts of interest 9
10. Confidential Information 910.1. Confidential Information 9
11. Other Matters 1011.1. Public Statements 1011.2. Additional Rights of the department 10
Part B : Additional detailed information to assist applicants completing the Application 11
1. Provider Suitability Requirements 12
2. VSL Workbook 24
3. Financial Performance Guide and Checklist 25
Key terms 29
Part A : Guidance for Applicants seeking to apply to become a VET Student Loans approved course provider
1. Introduction
1.1. Background
1.1.1. The Australian Government’s VET Student Loans (VSL) program commenced from 1 January 2017. This replaced the VET FEE-HELP scheme, which ceased for new students on 31 December 2016.
1.1.2. The VSL program provides income contingent loans to eligible students undertaking vocational education and training (VET) in approved courses with an approved course provider. The VSL program is giving eligible students access to quality higher level VET qualifications, particularly those students who could not otherwise afford to pay upfront.
1.1.3. Only students enrolled in an approved course with a body approved by the Secretary of the Department of Education and Training (department) are eligible for VET Student Loans. Such bodies are referred to as an ‘approved course providers’. This guide sets out the process for applying to be an approved course provider and is updated regularly for each application round.
1.1.4. Approved course providers are required to be committed to the delivery of high quality VET and to achieving the best outcomes for students.
1.1.5. The VET Student Loans Act 2016 (the Act) and the associated VET Student Loans Rules 2016 (the Rules), establish the requirements for an organisation to be approved as an approved course provider for the VSL program. Applicants should be familiar with these provisions before lodging an application.
1.1.6. More information about the VSL program is also available from the department’s website at www.education.gov.au/vet-student-loans.
1.1.7. VET Student Loans are only available for the following higher level VET qualifications:
(a) Diploma
(b) Advanced Diploma
(c) Graduate Certificate
(d) Graduate Diploma.
1.1.8. Within these higher level VET qualifications, course eligibility for VET Student Loans is limited to courses that have a national priority, meet industry needs, contribute to addressing skills shortages and align with strong employment incomes. Loan caps apply, and courses and/or provider fee limits (loan caps) will also be applied.
1.1.9. The approved courses list for VET Student Loans entitled VET Student Loans (Courses and Loan Caps) Determination 2016 is available at www.legislation.gov.au/Home. Applicants should check the approved course list to ensure that they offer at least one course on the approved course list, before applying.
1
2. Application for approval as an approved course provider
2.1. How to Apply in the form approved by the Secretary
2.1.1. Applicants must follow the instructions in this Application Guide to lodge a valid application.
2.1.2. In accordance with the Act, an application to be approved as an approved course provider must be in the form approved by the Secretary and be accompanied by the Application Fee.
2.1.3. The Secretary is not required to consider or decide an application which is not in the form approved or where the applicant has not paid the Application Fee.
2.1.4. For the purpose of this application round, the form approved for applications comprises:
a) the Application Submission Outline, which must be completed in accordance with the requirements of Part B of this Application Guide; and
b) the VSL Workbook, which must be completed in accordance with the requirements of Part B of this Application Guide; and
c) substantiating evidence submitted by the Applicant to support its Application, which must be provided in accordance with the requirements of Part B of this Application Guide.
2.1.5. In addition, an application must be lodged using the department’s HELP Information Management System (HITS) on or before the Closing Time and each Applicant must pay the Application Fee ($5,110) within 14 days after receipt of an invoice following lodgement of their application on HITS.
2.1.6. Further information about these requirements for lodging a valid application is set out below.
3. Submission of applications
3.1. Applicant Submission Outline
3.1.1. The Applicant Submission Outline provides a format for each Applicant to address the relevant course provider requirements, including the provider suitability requirements, with evidence to be attached to support claims against each of the requirements.
3.1.2. The Application Submission Outline plus your supporting documentation must be submitted to the department via HITS in .pdf (Acrobat) format only.
3.2. VSL Workbook
3.2.1. The VSL Workbook contains ten (10) worksheets, all of which must be completed.
3.2.2. Your VSL Workbook must be completed and returned to the department in Microsoft Excel format. Certain worksheets within the VSL Workbook (for example, Form B and Form G) must also be printed, scanned, signed, dated, witnessed and uploaded to HITS as .pdf documents.
3.3. Application Guide
3.3.1. This Application Guide provides details about the information and format required for Applicants completing the application. In particular, Part B of this Application Guide sets out information to assist Applicants to address the course provider requirements including what evidence is required to substantiate an Applicant’s claims against the
2
requirements and how to complete the Applicant Submission Outline and VSL Workbook.
3.4. Amending the Application Guide
3.4.1. The department may amend this Application Guide or the application process at any time (including extending the Closing Time). If the department does so prior to the Closing Time, all Applicants will be notified by email and if appropriate, the department may give Applicants the opportunity to amend their applications.
3.4.2. If the department amends any aspect of the Application Guide after the application Closing Time, it may seek amended applications.
3.5. Questions
3.5.1. Questions should be directed to the contact form located at the ‘help’ options at the bottom of each webpage at www.education.gov.au/vet-student-loans. The department may publish information on frequently asked questions on the department’s website. If the department publishes the response to an Applicant’s questions, it will do so in a de-identified way.
3.5.2. The Provider Briefing on 5 September 2017 will provide Applicants with a further opportunity to ask Questions.
3.6. Registering your interest in becoming a VSL approved course provider
3.6.1. You must use the online enquiry form on the department’s website to express your interest in applying as a VSL approved course provider. Frequently Asked Questions are available on the department’s website at www.education.gov.au/vet-student-loans. These are updated when additional clarity can assist providers with their application.
3.6.2. This Application Guide is publicly published on the department’s website at www.education.gov.au/vet-student-loans/vet-student-loans-applicants.
3.6.3. The Applicant Submission Outline and the VSL Workbook will be made available to organisations when they register an expression of interest to apply to be an approved course provider using the online enquiry form on the department’s website www.education.gov.au/vet-student-loans.
3.7. Applications must be submitted using HITS
3.7.1. To be a valid application, applications must be submitted on the department’s HELP Information Technology System (HITS).
3.7.2. The only exception to this is where due to exceptional circumstances, an alternative arrangement has been approved by the department for submission, in writing and in advance of the Closing Time.
3.7.3. If you have previously used HITS and have an existing HITS ID, you should check that your existing HITS logon and password details are still current. This can be achieved by logging into HITS. If you have forgotten your password, please use the online enquiry form on the department’s website to have it reset.
3.7.4. If your organisation does not currently have a HITS account, logon ID and passwords, it is very important that you immediately apply to obtain HITS credentials (see 3.8 below).
3.7.5. Without HITS access and credentials, your organisation may not be able to meet the submission requirements.
3
3.8. How to obtain HITS credentials
3.8.1. Organisations that register an expression of interest to apply will be emailed the following:
a) the HITS credentials application form;
b) a HITS Vendor Information form;
c) a VSL Workbook; and
d) Application Submission Outline.
3.8.2. If you do not have an active HITS account, you need to complete and return a signed and dated copy of the credentials application form to the department as soon as possible. It may take three to four working days for the department to provide you with HITS credentials to enable you to lodge your application.
3.8.3. To use HITS and to complete the VSL Application Workbook, you must use a computer running Windows 7 or above, Excel 2010 or above, and be able to scan and send supporting documents in coloured .pdf format.
3.8.4. While the department’s IT Team supports only MS Internet Explorer, for internet connections, other browsers (such as Firefox) should also work, but it is the Applicant’s responsibility to ensure that their IT system supports and is compatible with HITS, the VSL Application Workbook and the Application Submission Outline.
3.8.5. HITS enables you to upload up to five documents simultaneously. Individual documents must not exceed 15MB.
3.8.6. Both new and existing HITS users should familiarise themselves with the recent changes to HITS which can be found at www.education.gov.au/hits-user-guide-and-training-videos.
3.8.7. If your organisation cannot access HITS or there are problems within HITS please contact the department via the online enquiry form.
3.9. Naming convention
3.9.1. The Application Submission Outline, supporting documentation and completed VSL Workbooks to be uploaded to HITS should use standardised file names; for example:
YOUR HITS ID NUMBER – CRITERION TITLE OR WORKBOOK TITLE
Eg. ‘1234 – FORM A‘; ‘1234 – Management; ‘1234 – Management – Attach 1’
3.9.2. All attachments should be referenced in the Application Submission Outline.
3.10. Authorised contact person
3.10.1. The HITS system requests Applicants to nominate five (5) contacts including one or more who will be authorised to communicate with the department during the application process. The primary contact person(s) must be one of the Key Personnel identified in the Applicant Details Form (Form B) within the VSL Workbook.
3.11. Application Fee
3.11.1. An important change since the first application round is that all Applicants must now pay an Application Fee each time they apply in an approved course provider application round.
3.11.2. Applicants will be issued an invoice on receipt of their application via HITS. The Applicant will have 14 days from the date of the invoice to pay the Application Fee.
3.11.3. The collection of an Application Fee assists with the recovery of the costs associated with processing and assessing applications. The fee amount per application is $5,110.
4
3.11.4. If an Applicant does not pay the Application Fee the Secretary is not required to consider the Application.
3.11.5. The Application Fee will not be refunded if an application has been assessed and is not approved as it does not meet the course provider requirements.
3.11.6. Further information about the Application Fee is available on the department’s website at www.education.gov.au/vet-student-loans.
3.12. Closing Time
3.12.1. Applications for approval as an approved course provider must be received by the Closing Time (see the table below). Subject to the Late Lodgement Policy at section 3.14. Applications received after the Closing Time will not be considered.
3.12.2. Applications received by the Closing Time will be acknowledged by the department.
3.13. Important dates
3.13.1. The following table sets out general information and important dates:
Activity Date Description
Expression of interest to apply
From 30 August 2017
Applicants are required to register their interest in making a VSL application via the department’s online enquiry form.
Application package
From 30 August 2017
The VSL Workbook and Application Submission Outline will be sent via email to applicants who express interest via the department’s online enquiry form.
Open for Application
From 30 August 2017
The department will begin accepting completed applications through HITS.
Provider Briefing 5 September 2017
The department will provide an information session for interested providers in Canberra. Information about how to register for this session is available at www.education.gov.au/vet-student-loans/vet-student-loans-applicants.
Closing Time for applications
11.59pm 26 September 2017Canberra time
The department will cease to accept applications after this date and time.
Deadline for submission of questions
4:00pm20 September 2017Canberra time
All questions should be submitted using the contact form located at the ‘help’ options at the bottom of each page at www.education.gov.au/vet-student-loans.
Contact The department’s contact form is located at the ‘help’ options at the bottom of each webpage at www.education.gov.au/vet-student-loans.
5
3.14. Late lodgement policy
3.14.1. The department may admit to assessment of any application received after the Closing Time where the department is at fault or if the Secretary (or his or her delegate) is satisfied there are exceptional circumstances. The Applicant will need to establish there are exceptional circumstances. The department’s decision about whether to admit an late Application will be final.
4. Course provider requirements
4.1. VET Student Loans Act 2016
4.1.1. The Act states in section 25 that the Secretary may approve a body as an approved course provider if satisfied that the body meets the course provider requirements. To meet the course provider requirements the body must:
(a) be a body corporate that is not a trustee; and(b) be established under the law of the Commonwealth, a State or a Territory; and(c) carry on business in Australia and have its central management and control in
Australia; and(d) be a registered training organisation (RTO); and(e) meet the provider suitability requirements; and(f) be a fit and proper person; (g) be a party to an approved Tuition Assurance Arrangement; and (h) be a member of an external dispute resolution scheme.
4.1.2. The Rules provide more detail about the fit and proper person requirements and the provider suitability requirements.
Note: Evidence for item (g) will be required as a condition of approval and item (h) applies automatically for all approved course providers.
4.2. Listed Course Providers
4.2.1. Listed course providers are registered training organisations defined in the section 27 of the Act. These ‘listed course providers’ include major Australian universities (Table ‘A’ and Table ‘B’ providers), TAFEs established under relevant State and Territory laws and training organisations owned by the Commonwealth, a State or a Territory.
4.2.2. A body that is a listed course provider, but was not an approved VET provider previously, will need to apply to the Secretary to be approved as an approved course provider through this application process.
4.2.3. Questions from listed providers should be directed to the contact form located at the ‘help’ options at the bottom of each page at www.education.gov.au/vet-student-loans.
5. Assessment of applications5.1. Conditions for assessment
5.1.1. Applications may not be considered if they are not in the form approved by the Secretary or fail to comply with any requirements specified in the Application Guide.
5.1.2. Applicants will be assessed against the information they provide.
5.1.3. It is at the Secretary’s complete discretion not to request further information.
6
5.2. Assessment
5.2.1. You will be notified by the department if Your application will not be considered for assessment.
5.2.2. The Secretary will only approve Your application if the Secretary is satisfied that You meet the course provider requirements.
5.3. Clarification
5.3.1. The department may:
(a) use any relevant information obtained in relation to an application (including independent inquiry) in the assessment of applications;
(b) request information from You for the purposes of deciding the application; or
(c) make independent enquiries about any matters that may be relevant to the assessment of an application, including contacting industry referees.
5.3.2. If You do not provide any further information requested of You by the department, Your application will not be considered and You will be notified in writing.
6. External Dispute Resolution Scheme
6.1. Approved external dispute resolution scheme
6.1.1. To be an approved course provider, You must be a member of an approved external dispute resolution scheme.
6.1.2. From 1 July 2017, all approved course providers are taken to be members of the approved external dispute resolution scheme operated by the VET Student Loans Ombudsman (see further section 42BA of the VSL Act and the VET Student Loans (External Dispute Resolution Scheme) Specification 2017). This enables providers to satisfy the course provider requirement at paragraph 25(2)(h), if they are approved.
7. Tuition Assurance7.1. Approved Tuition Assurance arrangement
7.1.1. To be an approved course provider You must be a party to an approved tuition assurance arrangement or be exempt by the Secretary from this requirement. Tuition Assurance protects students in the event their course provider ceases to provide the course. Whilst it is possible, it is not usual for the Secretary to exempt an Applicant from the tuition assurance requirement.
7.1.2. Your application may be considered without You being a party to an approved tuition assurance arrangement. If Your application is otherwise considered satisfactory, You will be notified and asked to demonstrate evidence that You are party to an approved tuition assurance arrangement. Approval as an approved course provider cannot be granted in the absence of this information (unless You have an exemption).
7.1.3. The requirements for an approved Tuition Assurance arrangement are set out in the Rules.
8. Approval as an Approved Course Provider8.1. Approval
8.1.1. You will be notified in writing of the Secretary’s decision to approve or not to approve Your application. If approved, the notice will specify the period for which Your approval
7
has effect. The period cannot be for more than seven (7) years. If the period is for less than this time, the notice will explain why.
8.2. Conditions
8.2.1. The Secretary may impose conditions on Your approval as an approved course provider. You will be given written notice of the conditions and the reasons for imposing the conditions.
8.2.2. It is anticipated that a provider fee limit will be imposed on all approved course providers. This will be a limit on the loan amounts that can be paid to a provider in a calendar year. Course fee limits may also be imposed on providers – this is a limit on the loan amounts available for a particular course(s).
9. Policy and Law9.1. Ethical dealing
9.1.1. The Australian Government’s policy is to engage in the highest standards of ethical behaviour and fair dealing throughout the application process. The Australian Government requires the same standards from those with whom it deals.
9.1.2. Applications should be prepared without improper assistance of current or former officers, employees, contractors or agents of the department and without the use of information improperly obtained or in breach of an obligation of confidentiality.
9.1.3. Applicants must not:
(a) engage in misleading or deceptive conduct, or make false or misleading claims or statements, in relation to their application or the application process;
(b) attempt to solicit information from or influence improperly any current or former officer, employee, contractor or agent of the department or violate any applicable laws or Australian Government policies regarding the offering of inducements in connection with the application process;
(c) engage in, procure or engage others to engage in, any activity that would result in a breach of the Lobbying Code of Conduct and Australian Public Service Commission Circular 2008/4 Requirements relating to the Lobbying Code of Conduct and post separation contact with Government; or
(d) otherwise act in an unethical or improper manner or contrary to any law.
9.1.4. The department may exclude from consideration any application lodged by an Applicant that, in the department’s reasonable opinion, has engaged in any behaviour contrary to clause 9.1.3. In addition, the department may refer the matter to relevant Commonwealth, State or Territory authorities. This right is in addition to any other remedies the department may have under law.
9.2. Application of law and Commonwealth policy
9.2.1. You should familiarise Yourself with all relevant Commonwealth legislation and policies relating to the application process and the provision of VET Student Loans.
9.2.2. The establishment of a time or date in this Application Guide does not create an obligation on the part of the department to take any action by that time or date, or create any right in an Applicant to expect that any action may be taken by that time or date.
8
9.3. Applicant’s Sole Risk
9.3.1. Participation in any stage of the application process is at the Applicant’s sole risk, cost and expense. The department is not responsible in any circumstance for any costs or expenses incurred by You in preparing or lodging an application or in taking part in the process.
9.4. Conflicts of interest
9.4.1. You must declare in Form G - Senior Authorised Officers Statutory Declaration and Authorisation if, at the time of lodging Your application, an actual, potential or perceived conflict of interest concerning You or a related entity exists, or might arise during the term of approval or in relation to Your application.
9.4.2. An actual, potential or perceived conflict of interest means any matter, circumstance, interest, or activity affecting You (including Your officers, employees, agents and subcontractors) which may or may appear to impair Your ability to perform diligently and independently.
9.4.3. A conflict of interest may exist, for example, if:
(a) Applicants (including any of their officers, employees, agents and subcontractors) have a relationship (whether professional, commercial or personal) with the department’s personnel involved in the evaluation of applications; or
(b) Applicants (including any of their officers, employees, agents and subcontractors) have a relationship with, and obligations to, an organisation which would affect the performance or would bring disrepute to or embarrass the department.
9.4.4. If at any time prior to becoming an approved course provider, an actual, potential or perceived conflict of interest concerning You or a related entity arises or may arise for any application, You must immediately notify the department via the contact form on the VSL website www.education.gov.au/vet-student-loans.
9.4.5. If an actual, potential or perceived conflict of interest arises, the department may:
(a) exclude the application from further consideration;
(b) enter into discussions to seek to resolve the conflict of interest; or
(c) take any other action it considers appropriate.
10. Confidential Information 10.1. Confidential Information
10.1.1. The department will treat as confidential any information that is by its nature confidential and is provided by Applicants in connection with the application process. You should clearly identify in Your application the information that You consider should be protected as confidential information. The department will only consider a request for confidentiality where:
(a) the information to be protected is identified in specific rather than global terms;
(b) the information is by its nature confidential; and
(c) disclosure would cause detriment to the parties concerned.
10.1.2. The department will not be taken to have breached any obligation to keep information provided by Applicants confidential to the extent that the information:
9
(a) is disclosed by the department to its advisers, officers, employees or subcontractors solely in order to conduct the application process or to prepare and manage any resultant approval;
(b) is disclosed to the department’s internal management personnel, solely to enable effective management or auditing of the process;
(c) is disclosed by the department to the responsible Minister;
(d) is disclosed by the department in response to a request by a House or a Committee of the Parliament of the Commonwealth of Australia;
(e) is shared by the department within the department’s organisation, or with another Australian Government department or agency, where this serves the Australian Government’s legitimate interests;
(f) is shared by the department with any organisation to the extent necessary to inform the department’s evaluation process. This may include, but is not limited to:
i. the Australian Skills Quality Authority, the Victorian Registration and Qualifications Agency or the Training Accreditation Council of Western Australia;
ii. the Tertiary Education Quality and Standards Agency;
iii. relevant state and territory training bodies.
(g) is authorised or required by law to be disclosed; or
(h) is in the public domain otherwise than due to a breach of the relevant obligations of confidentiality.
11. Other Matters11.1. Public Statements
11.1.1. Except with the prior written approval of the department, You should not make a statement, issue any document or material or provide any other information for publication in any media, concerning the application assessment, the acceptance of any application, or notification that You have been approved as an approved course provider.
11.1.2. For the avoidance of doubt, participation in the application process does not limit Your right to enter into public debate or criticism of the Australian Government, its agencies or personnel.
11.2. Additional Rights of the department
11.2.1. Without limiting other rights contained in this Guide or limiting its rights at law or otherwise, the department may do any or all of the following at any time:
(a) seek amended applications or call for new applications;
(b) forward any clarification about the application process to all known Applicants on a non-attributable basis and without disclosing any confidential information of an application; and
(c) provide additional information to Applicants.
10
Part B : Additional detailed information to assist applicants completing the Application
This Application Guide contains information for VSL applicants to use to provide evidence to substantiate that they meet the course provider requirements and in particular the provider suitability requirements.
An Application Submission Outline and a VSL Workbook will be provided to applicants who register their interest in applying for approval.
The Application Submission Outline must be used by Applicants to structure their response to the course provider requirements including in particular the provider suitability requirements.
In addition, all of the following worksheets in the VSL Workbook are required to be completed:
A. Applicant’s Details
B. Key Personnel Details – for each Key Personnel
C. Financial Performance (Forms C1, C2)
D. Course History
E. Industry References (example only)
F. Proposed Approved Course Details
G. Senior Authorised Officers’ Declaration and Authorisation (Forms G1, G2, G3)
This Part B of the Application Guide provides additional information to assist Applicants address the provider suitability requirements and information about the content of the VSL Workbook and how each worksheet relates to the relevant requirements.
11
1. Provider Suitability RequirementsTo be approved as an approved course provider You must demonstrate that You meet all of the provider suitability requirements specified in the Rules.
The provider suitability requirements cover the following areas:
1. General requirements
2. Financial performance
3. Management and governance
4. Experience and course offerings
5. Student outcomes
6. Workplace relevance
Your written response must address each of the above provider suitability requirements.
It is in Your interest to provide complete and relevant information with justification and substantiating evidence against each provider suitability requirement. Substantiating evidence should include documentation/evidence that is from an external source and not solely an internal policy.
A 1500 word limit applies to the written response for each of the provider suitability requirements. This word limit does not apply to the evidence and supporting documentation that is provided. However, the evidence should be organised separately for each provider suitability requirement and compiled or scanned into one attachment or appendix for each of the provider suitability requirements (refer to the Application Submission Outline).
You will be assessed on the information provided. Your application must be complete when lodged.
It is at the Secretary’s complete discretion not to request further information.
12
General requirements (see Rules, section 22)In responding to other elements of the provider suitability requirements specified below, Your application should demonstrate that You meet the general requirements, which provide that You must.
(a) be committed to
i. the delivery of high quality vocational education and training: and
ii. achieving the best outcomes for students; and
(b) act efficiently, honestly and fairly in all dealings with students, stakeholders and the Commonwealth (including the National VET Regulator); and
(c) have a record of satisfactory conduct in relation to any previous vocational education and training:
i. provided by the provider; and
ii. for which the Commonwealth, a State or a Territory provided funding (including by way of loans to students).
13
Financial performance (see Rules, sections 23 to 25)The Applicant must provide:
1. A written response in the Application Submission Outline which lists the contents of what You have provided;
2. Financial information as detailed in this Application Guide and the Rules; and
3. A completed Financial Performance worksheet in the required VSL Workbook (Forms C1, C2).
To Assist with providing the correct financial information refer to Part B Section 4 Financial Performance Guide and Checklist of this document.
It is up to the Applicant to demonstrate that it meets the entire financial performance requirement (refer to the Rules , Part 4, Division 3, Subdivision C). Applicants are not limited to providing only the information requested in this Application Guide.
As well as completing the Financial Performance Worksheet in the required VSL Workbook, Applicants must provide a written response, in the Application Submission Outline, detailing the evidence submitted. They must also submit supportive evidence (refer to the Financial Performance Guide and Checklist in Part B Section 3 of this document for details of the evidence required).
The indicators of financial viability listed at section 23(3) of the Rules will be assessed as a whole. The financially viability of an applicant will be assessed based on the collective result of the indicators and other required information (e.g. the percentage of revenue from sources other than Australian Government income contingent loans is one of the indicators considered when looking at the financial viability of an Applicant).
The department requires three periods of financial information to assess a provider’s overall financial performance. The department will consider the provider’s interim period management reports.
Applicants must provide evidence (refer to the Financial Performance Guide and Checklist, at Part B Section 3 of this Application Guide, for guidance about providing sufficient supportive evidence) that Your organisation meets all of the following:
a) has a history of sound financial performance of the RTO for the previous three financial periods through the provision of accurate financial statements audited by an independent qualified auditor;
b) has at least 20 per cent of revenue from sources other than Australian Government income contingent loans (if the Applicant has more than 100 students enrolled in AQF courses for the 2016 calendar year [section 23 (3)(d) of the Rules]);
c) has a sound financial management structure (detailed flowchart of the organisation structure);
d) is financially viable and able to pay its debts as and when they are due and payable. Indicators of financial viability are specified in section 23 of the Rules;
e) has workers’ compensation and adequate public liability insurance (section 25 of the Rules); and
f) dividends and related party transactions meet the requirements specified in the Rules (section 24 of the Rules).
All applicants must submit financial information prepared in accordance with the relevant and current standards set by the Australian Accounting Standards Board Evidence. This must include, but is not limited to the following:
14
Audited annual financial statements for the most recently completed (based on your financial reporting period this may be either 31 December 2016 or 30 June 2017 ) annual financial reporting period
This includes a declaration by an independent qualified auditor that Your organisation has, as at the date of the declaration, complied with all statutory obligations relating to the lodgement and payment of all of the following:
a) company tax
b) goods and services tax
c) pay-as-you-go withholding tax for employees
d) payroll tax
e) superannuation guarantee for employees and other withholding tax (if applicable)—if this is not applicable, the accountant or auditor is required to declare that this tax is not applicable.
AND either:
A. General purpose financial statements:
Where the Applicant:
a) is a reporting entity; OR
b) is a large proprietary company, if two of the following three apply:
o the consolidated revenue for any of the three most recently completed annual financial reporting periods of the company and the entities it controls (if any) is $25 million or more;
o the value of the consolidated gross assets, including goodwill and all intangibles, at the end of any of the three most recently completed annual financial reporting periods of the company and the entities it controls (if any) is $12.5 million or more;
o the company and the entities it controls (if any) have 50 or more employees at the end of the financial year; OR
c) has financial statements that are, or held out to be, general purpose financial statements.
OR
B. Special purpose financial statements
Where the Applicant:
a) is a small proprietary company that is not a reporting entity.
Special purpose financial statements must be prepared in accordance with standards AASB101, AASB107, AASB1031, AASB1048 and AASB1053 from the Australian Accounting Standards Board, and must include all of the following:
i. a statement of financial position (balance sheet)
ii. a statement of comprehensive income (income statement or profit and loss statement)
iii. a statement of changes in equity
iv. a statement of cash flows
v. notes, comprising a summary of significant accounting policies and other explanatory notes
15
vi. full disclosure of any related party transactions
vii. a signed and dated report from directors and declaration in respect of the financial statements
viii. signed auditor’s independence declaration as required under section 307C of the Corporations Act 2001
ix. an independent auditor’s report
x. a copy of the Certificate of Public Practice or Public Practice Certificate held by the person who conducted the audit of the financial statements.
AND
The Applicant’s audited annual financial statements for the previous two reporting periods.
If the last available audited annual financial statements are more than 6 months old, Your organisation must also provide interim management reports that include all of the following:
a) a statement of financial position (balance sheet)
b) a statement of comprehensive income (income statement or profit and loss statement)
c) a statement of changes in equity
d) a statement of cash flows
e) notes, comprising a summary of significant accounting policies and other explanatory notes
f) full disclosure of all related party transactions
g) a signed and dated directors’ report and declaration in respect of the financial statements.
IN ADDITION
Where the Applicant is a wholly-owned subsidiary of another legal entity, or forms part of a larger tax group, they must submit the financial statements of the consolidated group for the most recently completed annual financial reporting period as well as the two years previous (where the status is relevant).
These financial statements must, at a minimum, have been prepared on an accruals basis and include all of the following:
a) a detailed balance sheet
b) a comprehensive income statement
c) a statement of cash flows
d) a statement of changes in equity
e) a directors’ declaration (or equivalent)
f) a directors’ report (or equivalent)
g) explanatory notes
h) any other document that forms part of the financial statements.
All reports and declarations accompanying the financial statements of the consolidated body must be appropriately signed and dated.
AND
16
Legal entity has changed in in the previous three years
Where your legal entity has changed in the previous three years (for example because You have changed Your corporate structure), you should make a case to the department demonstrating continuity within the business to show continuous provision of high quality VET.
If you can demonstrate continuity between a previous entity and an existing entity, then the financial statements for the previous entity should be included with your application to demonstrate a history of financial viability.
AND
Financial Performance Guide and Checklist
As part of this Application Guide the department has provided a Financial Performance Guide and Checklist which is a guide for applicants to assist them in providing the required material (refer to Part B Section 3 of this Application Guide).
17
Management and governance (see Rules, sections 26 to 30)Applicants must demonstrate through a written response in the Application Submission Outline and provision of supporting evidence of implementation of their policies and processes and the completion of Forms A and B of the VSL Workbook that they have:
a) robust and appropriate management and governance structures;
b) clearly defined decision-making processes that ensure accountability for decisions and actions;
c) the resources necessary to support employees and students; and
d) systems in place to maintain student records, ensure data integrity and report data consistently, accurately and on time to the department.
You will need to describe and substantiate your claim with evidence:
a) Your organisational structure, outlining the responsibilities of key roles and how the activities of Your organisation are managed and coordinated in practice;
b) Your decision making processes for ensuring you continue to operate as a high quality VET provider;
c) Your relationship with other entities that may influence the financial or strategic operations of Your organisation;
d) the resources You have to support Your staff and students;
e) how You maintain Your student records and ensure the integrity of the data; and
f) Your record of reporting data consistently, accurately and on-time to external bodies.
Compliance with laws and meeting standards
Applicants are required to comply with relevant laws and continually meet the appropriate RTO quality standards for training and assessment. Details are provided in the Rules.
You should describe and substantiate Your experience in complying with the laws and meeting the standards, and if these have not been complied with or met on any occasion, describe the circumstance and outcome. You should also describe and substantiate the processes You have in place to ensure compliance, and Your review processes to ensure their effectiveness.
Legal entity has changed in the previous three years
Where your legal entity has changed in the previous three years, you should make a case to the department demonstrating continuity within the business to show continuous provision of high quality VET.
Evidence to support application
It is expected that high quality organisations that are continuously improving their performance against their registration standards will have a range of evidence and data at hand to demonstrate the quality of their organisation and the quality of their provision for the courses that they are seeking to offer income contingent loans.
Providing a range of policy documents that the organisation has created does not in itself indicate how these processes result in robust and effective management strategies which work in practice to support good outcomes for students and employers.
It is recommended that You provide additional explanations and examples of the implementation of specific processes and the benefit to students as well as information regarding any improvements made by the organisation are also required.
18
Governance Structures:
In addition to the written submission, an RTO’s governance arrangements may be evidenced by, but not limited to, the following documents:
a) an organisation chart;
b) resumes or copies of relevant qualifications of key individuals;
c) evidence of how the organisation’s decision making and accountability practices work, for example through meeting minutes from the Executive Leadership group or Board;
d) evidence of risk management practices, for example a risk register, or meeting minutes that demonstrate the leadership group engage with risk identification and management;
e) a business plan and/or strategic plan and evidence that it guides the activities of the organisation, for example, meeting minutes, evidence that staff have been made aware of the organisation’s goals, direction and priorities, or updated processes or practices that are implemented to meet strategic goals;
f) evidence of relationships with other entities that may influence the financial or strategic operations of the RTO, and evidence of conflict of interest processes.
Policies and Procedures:
An RTO’s policies and procedures (which You should provide with Your Application) should include, but not be limited to all of the following:
a) policies to guide the governing body in the management of the organisation;
b) policies to guide the staffing of the organisation, including recruitment, staff conduct and conditions;
c) policies to ensure compliance with laws, such as OH&S, anti-discrimination and privacy;
d) policies that relate to the provision of education, for example assessment, fees and student grievance policies.
In addition to having policies and procedures, the implementation of the policies and procedures is of critical importance. This may be evidenced by, but not limited to, the following:
a) evidence of compliance with an RTO’s own policies, for example, board minutes that demonstrate decisions have been taken according to policy, or payments made according to financial management policies;
b) evidence of the review and revision of policies and procedures, either as a specific need arises or on a yearly basis; and
c) evidence of the organisation ensuring that all relevant people are aware of their obligations under the specific policies, such as through staff communications or signatures from staff or students acknowledging policies have been read and understood.
Collecting and reporting on student data and ensuring data integrity:
A condition of registration for RTOs is compliance with reporting requirements with the National VET Provider Collection to NCVER and Quality Indicator data to ASQA.
In addition to submitting evidence of the compliance with these requirements, an RTO’s response may also cover the following:
a) the strategies and systems in place to ensure accurate and timely reporting to the department; and
b) practices to ensure data integrity.
This may be evidenced by the following:
19
a) documentation showing on time reporting with no adverse feedback from government or regulatory bodies;
b) evidence showing the use of IT systems for data and student reporting; and
c) details of IT systems and strategies for ensuring data integrity, the security of data, regard to privacy principles.
20
Experience and course offerings (see Rules, sections 31 to 32)Applicants must complete Form D and Form F of the VSL Workbook and demonstrate through a written response their experience in providing quality vocational education and training with evidence to support:
a) a strong history of delivering high quality vocational education and training to genuine students (for at least three years) and the scope of the courses offered. This could include evidence of nationally recognised awards or finalists/shortlisted results, results of compliance audits conducted, student and course data or the long term delivery of state subsidised courses or the organisation being on a preferred provider register, recognition by peers;
b) a strong history of delivering Diploma and Advanced Diploma qualifications and courses (for at least three years) such as evidence proving the long term delivery of Diploma/Advanced Diploma qualifications, student, course and completion rates data. Providing the TGA report of courses on an organisation’s scope is insufficient to satisfy this requirement. Detailed evidence of delivery of the courses and the students and outcomes is required ;
c) a track record of providing state subsidised courses, or being on a state preferred provider register (provide evidence of this delivery in the form of copies of contracts or being listed on state subsidised website as approved providers); and
d) how Your training and assessment processes have benefited students, recognised as exemplary by industry and employers, or references or articles indicating positive outcomes and good news stories regarding the training offered by your organisation at a local, state or national level.
If You have not offered Diploma or Advanced Diploma qualifications for a period of three years, You will need to provide us with verifiable information which we could assess to consider You as a potentially high quality provider of these courses.
RTOs may consider submitting detailed evidence regarding internal and external recognition of the quality of their organisation by students, teachers, employers, industry organisations, community organisations and interactions with different levels of governments.
Substantiating evidence must be in a form that can be validated by reference to external bodies Evidence must not be restricted to Your current students, graduates or staff.
21
Student outcomes (see Rules, sections 33 to 34)Applicants must complete Form D of the Workbook and provide the following information to address this provider suitability requirement:
a) completion rates for each its courses (or units) that lead to a diploma, advanced diploma, graduate certificate or graduate diploma for the most recent three years. Explanations should be provided for those courses with high level of withdrawals or high levels of non-completion over a long period;
b) levels of student engagement in its courses for the most recent three years, having regard to data such as the number of times a student has logged in for an online course, if the student has satisfied course assessments, signed attendance sheets and a statement of attendance monitoring can be provided (this information should be able to be cross-checked against other information provided in the application);
c) any surveys undertaken to measure the student satisfaction and the results of those surveys, for example actual copies of student completed surveys;
d) quality indicator survey outcomes such evidence of the most recent three years, actual completed survey examples, a statement of how and when the surveys are undertaken, and collated survey data and evidence of what has occurred as a result of the information collected;
e) number and type of complaints received by the Applicant, how the complaints were addressed and systems improved, examples or copy of the complaints register including actions etc; and
f) methodology used to ensure students are academically suited to the courses they choose, for example details of the enrolment process and copies of forms completed by students and staff and the assessment and feedback provided.
Substantiating evidence must be in a form that can be validated by reference to external bodies.
22
Workplace relevance (see Rules, section 35)Applicants must complete Form E of the VSL Workbook and demonstrate through a written response and evidence (separate references on letterhead) that they have established and maintained relevant and appropriate links with industry and other bodies, to ensure their courses meet workplace needs and improve employment outcomes for students.
Where Your organisation delivers qualifications in different industry sectors, evidence should be provided to support engagement with each industry.
Information must be in a format that could be validated by external bodies and personnel outside your organisation.
Evidence to support this criterion may include:
a) industry member participation on course or provider advisory boards and the impact of their participation;
b) substantial formal arrangements for relevant student placements with employers ;
c) evidence of membership of relevant professional associations and how this assists with ensuring your course delivery remains current and relevant for employers;
d) details about the Applicant’s involvement in relevant industry organisations or presentations at conferences;
e) projects undertaken in cooperation with peak employer organisations;
f) references or statements from industry and employer groups;
g) Evidence of employment outcomes for students.
23
2. VSL WorkbookThe VSL Workbook contains 10 Worksheets which must be completed by all individual applicants.
Form A – Applicant Details
This information identifies Your organisation, Your contacts and the Key personnel;
‘Key personnel’ is a defined term in the Rules (section 16). It includes a director, officer or member of Your governing body; any person that is concerned with or takes part in Your management, or that exercises control or influence over Your management or direction; or a person who exercises control or influence over the allocation of Your resources; and
You must list in the Applicant Details all persons in Your organisation that meet the definition of Key personnel and identify the positions they hold. When processing Your application, we may identify other persons who would be considered to be Key personnel. It is in Your interest to identify all Key personnel otherwise it may delay the consideration of Your application or may impact on the assessment of Your application.
Form B – Key Personnel Details and Declaration
This form must be separately completed by each Key personnel listed in Form A. The purpose of this form is to demonstrate that each of those persons meet the fit and proper requirements as specified in the Rules. The form also enables each person to demonstrate he or she has the experience and expertise to perform the positions they hold in Your organisation.
Forms C1, C2 – Financial Performance Data
These forms collect relevant financial data about Your organisation.
Form D – History of course provision
This form is used to outline Your course history for the most recent three years.
Form E – Sample workplace relevance documentation and references
This form is a sample of a letter to be provided by an employer to support Your claim of having links to industry. This sample letter indicates some of the factors the department would expect to see in a letter of support.
Form F – Proposed approved course forecast
This form is required to be completed for each course You propose to deliver as an approved course. It requires You to provide details about the course, including tuition fees as well as student estimates.
Forms G1, G2, G3 – Senior Authorised Officers Statutory Declaration and Authorisation
These forms require a senior authorised officer to declare the information contained in the application is true and correct and authorise the department to undertake necessary steps to assess the information in the application.
These forms are required to be executed by either director or secretary or a person who is legally empowered to give assurances and enter into commitments on Your behalf.
It is critical that a pdf version of all signed forms is included with Your application.
24
3. Part B - Financial Performance Guide and ChecklistThis is a checklist for applicants to use to assist with preparing an application. Refer to only one section, being the section which is relevant to your organisation: either section A or section B or section C, and upload the relevant documents (specified in the relevant section of this checklist) as part of your application lodgement into HITS. Each document must be individually uploaded and named according to the checklist item number (e.g. B1, B2). This information is in addition to completing the mandatory VSL Workbook required.
A. Listed course provider applicants
Refer to the VET Student Loans ACT 2016 Section 27 and the VET Student Loans Rules 2016 Section 26 Division 4. Applicants that fall part of Section A are not required to complete Section B or C.
B. All other course provider applicants (except for small proprietary company or entities which are not a reporting entity)
Do not complete this section, if You are a small proprietary company or not a reporting entity, refer to and complete Section C.
Item No Information to be provided Yes N/A
B1Audited general purpose financial statements for the most recently completed annual financial reporting period (e.g. 31 December 2016 or 30 June 2017)
☐
B2 Auditor’s independence declaration ☐B3 Independent auditor’s report ☐
B4A copy of the Certificate of Public Practice or Public Practice Certificate of the person who conducted the audit
☐
B5
Audited financial statements for the two annual financial reporting periods immediately prior to those for which audited general purpose financial statements were submitted
☐
B6 Declaration of compliance with statutory obligations from an external, independent qualified auditor ☐
B7 A copy of the worker’s compensation and public liability insurance certificate ☐
B8 Organisation structure ☐
B9 Financial Performance Worksheet from the required Workbook ☐
B10 Evidence and details of any Guarantees or Loans provided to other organisations / third parties ☐ ☐
B11
Evidence and details of assets that are provided as security to other organisations, including but not limited to nature of the security, name of organisation and whether the organisation is an authorised deposit taking institution.
☐ ☐
25
Item No Information to be provided Yes
A1 A copy of the worker’s compensation and public liability insurance (i.e. certificate of currency) ☐
B12
Details of transactions between related parties and key personnel including the amount and nature of the transactions, which have not been included in the financial statements
☐ ☐
B13 Information regarding change of legal entity ☐ ☐
B14 Financial Performance written response which lists the contents of what You have provided ☐ ☐
If Your last available audited annual financial statements are more than six (6) months old, interim management reports for the period from the end of last annual financial reporting period to 30 June 2017 must be provided.
Item No Information to be provided Yes N/A
B15 A statement of financial position (balance sheet) ☐ ☐
B16 A statement of comprehensive income (income statement or profit and loss statement) ☐ ☐
B17 A statement of changes in equity ☐ ☐B18 A statement of cash flows ☐ ☐
B19 Notes, comprising a summary of significant accounting policies and other explanatory notes ☐ ☐
B20 Full disclosure of related party transactions ☐ ☐
B21 A signed and dated directors’ report and declaration in respect of the financial statements ☐ ☐
B22 Other relevant documents ☐ ☐
If Your organisation is a wholly-owned subsidiary of another legal entity, or forms part of a larger tax group, financial statements of the consolidated group for the most recently completed annual financial reporting period as well as the two years previous (where the status is relevant) must be submitted and include the following at a minimum:
Item No Information to be provided Yes N/A
B23 A statement of financial position (i.e. balance sheet) ☐ ☐
B24 A statement of comprehensive income (i.e. income statement or profit and loss statement) ☐ ☐
B25 A statement of changes in equity ☐ ☐B26 A statement of cash flows ☐ ☐
B27 Notes, comprising a summary of significant accounting policies and other explanatory notes ☐ ☐
B28 A signed and dated directors’ report and declaration in respect of the financial statements ☐ ☐
B29 Any other document that forms part of the financial statements ☐ ☐
26
C. Small proprietary company or an entity that is not a reporting entity only
Item No Information to be provided Yes N/A
C1
Audited general purpose financial statements for the most recently completed annual financial reporting period (e.g. 31 December 2016 or 30 June 2017)
OR
☐ ☐
C2
Audited special purpose financial statements(e.g. 31 December 2016 or 30 June 2017) for the most recently completed annual financial reporting period that must be prepared in accordance with Australian accounting standards AASB101, AASB107, AASB108, AASB1031, AASB1048 and AASB1054 that must include:
☐ ☐
C2a A statement of financial position (balance sheet) ☐C2b
A statement of comprehensive income (income statement or profit and loss statement)
☐C2c A statement of changes in equity ☐C2d A statement of cash flows ☐C2e
Notes, comprising a summary of significant accounting policies and other explanatory notes
☐C2f Full disclosure of related party transactions ☐C2g
A signed and dated directors’ report and declaration in respect of the financial statements
☐
C3 Auditor’s independence declaration ☐C4 Independent auditor’s report ☐
C5A copy of the Certificate of Public Practice or Public Practice Certificate of the person conduct the audit
☐
C6Audited financial statements for the two annual financial reporting periods immediately prior to those for which audited general purpose financial statements were submitted
☐
C7Declaration of compliance with statutory obligations from an external, independent qualified auditor/accountant ☐
C8A copy of the worker’s compensation and public liability insurance certificate (i.e. certificate of currency)
☐
C9 Organisation structure ☐C10 Financial Performance Worksheet from the required Workbook ☐
C11Evidence and details of any guarantees or loans provided to other organisations / third parties
☐ ☐
C12
Evidence and details of assets that are provided as security to other organisations, including but not limited to nature of the security, name of organisation and whether the organisation is an authorised deposit taking institution.
☐ ☐
C13
Details of transactions between related parties and key personnel including the amount and nature of the transactions, which have not been included in the financial statements
☐ ☐
C14 Information regarding change of legal entity ☐ ☐
C15 Financial Performance written response which lists the contents of what You have provided
☐ ☐
27
If Your last available audited annual financial statements are more than six (6) months old, interim management reports for the period from the end of last annual financial reporting period to 30 June 2017 must be provided.
Item No Information to be provided Yes N/A
C16 A statement of financial position (balance sheet) ☐ ☐
C17 A statement of comprehensive income (income statement or profit and loss statement) ☐ ☐
C18 A statement of changes in equity ☐ ☐C19 A statement of cash flows ☐ ☐
C20 Notes, comprising a summary of significant accounting policies and other explanatory notes ☐ ☐
C21 Full disclosure of related party transactions ☐ ☐
C22 A signed and dated directors’ report and declaration in respect of the financial statements ☐ ☐
C23 Other relevant documents ☐ ☐
If Your organisation is a wholly-owned subsidiary of another legal entity, or forms part of a larger tax group, financial statements of the consolidated group for the most recently completed annual financial reporting period as well as the two (2) years previous (where the status is relevant) must be submitted and include the following at a minimum:
Item No Information to be provided Yes N/A
C24 A statement of financial position (i.e. balance sheet) ☐ ☐
C25 A statement of comprehensive income (i.e. income statement or profit and loss statement) ☐ ☐
C26 A statement of changes in equity ☐ ☐C27 A statement of cash flows ☐ ☐
C28 Notes, comprising a summary of significant accounting policies and other explanatory notes ☐ ☐
C29 A signed and dated directors’ report and declaration in respect of the financial statements ☐ ☐
C30 Any other document that forms part of the financial statements ☐ ☐
28
Key terms The following table sets out the details of some key terms used in this Application Guide:
Applicant or You/r The body applying for approval as an approved course provider for VET Student Loans.
Application Fee The Application Fee is a one-off fee to submit an application for approval as an approved course provider.
Application Guide This Guide, which details the application process and application requirements, to be addressed by the Applicant to apply as an approved course provider for VET Student Loans.
Approved Courses Courses listed on the current VET Student Loans (Courses and Loan Caps) Determination 2016.
Approved Course Provider A body approved by the Secretary under Part 4 of the VET Student Loans Act 2016.
Business Day Any day of the week other than Saturday, Sunday or a national public holiday or a public holiday in the Australian Capital Territory. A national public holiday is a Commonwealth public service holiday throughout Australia promulgated in the Commonwealth Government Gazette.
Course Provider Requirements The course provider requirements specified in the Act.Department or Us or We The Australian Government Department of Education and
Training.FAQs Frequently Asked Questions
A compilation of questions and answers will be available on the department’s website to assist providers in preparing their applications. It is updated from time to time to improve understanding of the requirements.
HITS HELP Information Technology System: the electronic platform used by the department to distribute and collect information from registered VET providers. VSL applications must be submitted using this platform unless other arrangements have been approved by the department.
Key Personnel Described in Part B of this Guide and as defined in the Rules.Also described as ‘Persons of Influence’ within HITS.
Provider Suitability Requirements
The provider suitability requirements specified in the Rules.
Questions/ Enquiries Questions about the application process should be directed to the contact form at www.education.gov.au/vet-student-loans before 4:00pm Canberra time 13 September 2017.
Tuition Assurance The scheme in place to protect and support students in the event of a course or provider closure. Approved course providers must be a party to an approved tuition assurance arrangement.
VSL Workbook Excel workbook containing ten (10) worksheets, all of which must be completed, signed and scanned where appropriate. This is part of the form approved by the Secretary, which must be submitted as part of a valid application.
29
