The 16/17 ASQA annual report, released on 31 October 2017, provided plenty to read and absorb. One of the key takeouts we observed was that the regulator has been increasing its audit activity. Further, it is becoming increasingly difficult to get through these audits.
What the report found
Over the 16/17 financial year, ASQA reported a significant increase in the number of audit activities it completed. One-third of these audit activities were ‘non-application-based’—that is, they were triggered by concerns raised by a review of the RTO’s risk profile. For this reason, ASQA also reported a corresponding increase in the amount of adverse regulatory decisions in the 16/17 financial year.
- ASQA completed 1632 audit activities in the 2016–17 reporting year, more than in any other reporting year since its establishment.
- 74% of RTOs audited last year failed at least one element of their requirements, compared to 81% the year prior (when the new ASQA standards were first introduced).
- ASQA gave these non-compliant organisations an opportunity to rectify their processes and provide additional evidence showing they could meet the required standards. This resulted in a compliance rate of just over 50%.
What this means for RTO operators
These figures would suggest that at least some of the failed audits were due to insufficient documentation and evidence provided during the initial audit.
Looking ahead, it seems the sector will continue to be heavily regulated. A prudent and sustainable business path for RTO operators is to remain on top of compliance and related obligations; waiting until the ASQA auditors come calling will put your RTO at increased risk of audit failure.
If you need help preparing for an audit, or would like to ensure your financial processes and systems are up to date, contact us for an appointment today.
Source: Australian Skills Quality Authority Annual Report 2016-17