Why is the FVRA tool required by ASQA?

Clause 7.2 (Standards for RTOs 2015) requires Registered Training Organisations (RTOs) to maintain an acceptable level of financial viability risk at all times and to ensure business continuity to achieve quality training outcomes.

An RTO is required to demonstrate this financial viability risk from submission of a complaint FVRA Tool to the Australian Skills Quality Authority (ASQA). The FVRA Tool is required to be independently reviewed and signed off by a qualified accountant in accordance with Australian Audit and Assurance Standards (ASAE 3000 and ASAE 3450).

This is a financial and risk report card on your business; how it is and how the future looks. Therefore, it needs to be a reflection of and consistent with the plans of your business.

Information and evidence required depends on individual circumstances and usually includes historical, actual and forecasts on the following:

• Student details;
• Staff and contractor details;
• Financials and tax records, and
• Government contracts

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When is the FVRA tool required by ASQA?

• initial registration for RTO and/or CRICOS;
• a change of scope new RTO (within 2 years of registration);
• a 50% change in ownership within 12 months;
• at any time (a monitoring review)

Who does ASQA see as responsible for the tool?

RTO Management – Your Responsibilities include adequate internal controls in the business and the preparation of financial information that is free of material misstatement in accordance with Australian Accounting Standards

Independent Accountants – Our Responsibilities include conducting a review and express a conclusion of the FVRA Tool in accordance with ASAE 3000 Assurance Engagements other than Audits or Reviews of Historical Information and ASAE 3450 Assurance Engagements Involving Corporate Fundraising and/or Prospective Financial Information

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