What is FVRA Tool
SRTO 2015_Clause 7.2—Assessment of financial viability risk
What clause 7.2 means for your RTO
Your RTO is required to present an acceptable level of financial viability risk at all times (this includes considering any parent entities). ASQA assesses each RTO’s financial viability risk to evaluate the likelihood of business continuity and the RTO’s capacity to achieve quality outcomes, as outlined in the Financial Viability Risk Assessment Requirements 2011.
ASQA considers this against the potential for adverse consequences if your entity collapses or becomes unviable, and makes a judgement about whether the level of risk is acceptable, unacceptable, or requires additional controls.
To enable a preliminary financial viability risk assessment, the initial registration application requires the applicant to provide:
• a range of financial sustainability information
• independent certification.
How can we assist
ASQA may also require your RTO to undergo a financial viability risk assessment at any other time.
ASQA may require you to provide evidence of acceptable financial viability risk. This evidence may include:
• financial statements and tax records
• business plans or projections
• Australian Securities and Investments Commission (ASIC) reports
• dependency statements
• independent financial assessments or audit opinions
• government contracts.
ASQA may request this evidence with applications for initial registration or renewal of registration, or at any other time.
We will not only assist you in completion of the FVRA tool, but we also assess and discuss that actual financial viability of the project for your business. We understand compliance as well as accounting hence we can assist to verify the underlying assumptions taken to complete the FVRA tool. For example, the training hours for FTE trainers/ Scheduled classroom hours/ Non academic hours etc.
Are you struggling to complete the FVRA tool for your next submission. Feel free to contact us.
Changes to FVRA Tool
In response to user feedback, ASQA has made a number of revisions to the Financial Viability Risk Assessment (FVRA) tool to make it more user friendly.
These changes will assist users in ensuring the tool is complete before they provide it to ASQA and, in cases where it is incomplete, provide additional guidance to identify items missing.
If you are required to complete and submit the FVRA tool to ASQA, you should ensure you are using the latest version and that you have provided all required attachments – these are detailed on the Provider Details tab of the FVRA tool.
ASQA may require you to demonstrate financial viability by submitting the FVRA tool at any time, or when you:
apply to become an RTO and/or a CRICOS provider
apply to change the scope of your RTO registration in the first two years of registration change 50% or more of the ownership of your RTO within a 12 month period.