The Financial Viability Risk Assessment Requirements 2011 aim to ensure that an applicant or registered training organisation (RTO) has the necessary financial resources to operate as an ongoing concern and deliver quality training and/or assessment services throughout the registration period.
The Financial Viability Risk Assessment Requirements 2011 are a legislative instrument, made by the Chief Commissioner, ASQA, under subsection 158(1) of the National Vocational Education and Training Regulator Act 2011.
The Fact sheet—financial viability provides an overview of ASQA's financial viability process.
How does ASQA assess financial viability risk?Current requirements for ASQA providersAll applicants are required to demonstrate financial viability when seeking initial registration with ASQA and at any other such times as ASQA deems necessary.
ASQA considers common indicators of financial performance and position to determine:
- an organisation’s likely business continuity, and
- its financial capacity to deliver quality outcomes.
New requirements for applicants for initial registration from 1 October 2013As of 1 October 2013, ASQA requires new applicants for initial registration to demonstrate financial viability by completing and submitting the FVD-0001—Financial viability risk assessment pack prior to, or at the same time as, submitting an 'Application for initial registration'.
The pack requires you to answer a series of questions about your organisation’s financial viability, including questions about forecasted financial projections and business ratios. The assistance of a nominated accountant will be required to complete the pack.
The introduction to the pack explains the process of completing and submitting the pack.
If you submit an application for initial registration as an RTO or a CRICOS provider without having previously completed and submitted the financial viability assessment pack, ASQA will deem your application ‘incomplete’. If ASQA finds your application to be incomplete, you will be notified of the incompleteness and provided with ten working days to rectify it. Failure to rectify the incompleteness within the prescribed timeframe will result in ASQA rejecting your application. Your application fee will also be forfeited.