1. Australian Skills Quality Authority Jan Mulcahy A/g Regional Manager Compliance, Melbourne 5 July 2013

2. National VET regulation ● The Australian Skills Quality Authority (ASQA) was established on 1 July 2011 to provide national regulation of Australia’s vocational education and training (VET) ● ASQA’s vision is to ensure that students, employers and governments have full confidence in the quality of vocational education and training outcomes delivered by RTOs and other providers 2

3. National VET regulation Rationale ● streamline regulation of vocational education and training (VET) ● increase consistency across the states and territories ● address emerging quality concerns 3

4. National VET regulation Most providers regulated by ASQA ● ASQA regulates approx 4100 training providers and course owners across Australia with presence in each state and territory ● around 520 Vic providers and 329 WA providers stay with Vic/WA regulators under current arrangements ● ASQA regulates any cross-jurisdictional operations (including online delivery) ● ASQA regulates operations outside of Australia where training and assessment are conducted and AQF qualifications and Statements of Attainment are issued ● ASQA is the designated authority for CRICOS registration of VET and ELICOS providers (but not schools or higher education) 4

5. ASQA’s progress to date Application typeNational Number National% Initial registration as a new provider5974.7 Renewal of registration as a provider132610.4 Change scope of registration1061483.2 Withdrawal registration as a provider2171.7 TOTAL12754100% Applications received 1 July 2011 – 31 May 2013 ● 707 applications relating to course accreditation also received 5

6. ASQA’s progress to date Applications completed 1 July 2011 – 31 May 2013 National Number Number of applications received12754 Number of applications completed11009 % completed86.3% 6

7. ASQA’s progress to date Application typeNational No.National % Applications approved Initial registration 236 Renewal of registration 709 Change of scope 9010 Notification of registration not continuing 155 1011091.8 Applications rejected Initial registration 88 Renewal of registration 89 Change of scope 269 Notification of registration not continuing 0 4464.1 Withdrawn by RTO Initial registration 91 Renewal of registration 56 Change of scope 300 Notification of registration not continuing 6 4534.1 Total11009100% Regulatory decisions made on completed applications 1 July 2011 – 31 May 2013 7

8. ASQA’s progress to date Regulatory decisions 1 July 2011 – 31 May 2013 Regulatory decisionsNational No Decisions to cancel a provider’s registration34 Decisions to suspend (all/part) a provider’s registration28 Provision of a written notice of an intention to cancel or suspend a provider’s registration 127 Other sanctions imposed on provider25 Total214 8

9. Average application processing times Timeframes for assessing applications will differ according to: ● the type of application ● the ‘quality’ and completeness of the application, and ● whether or not the RTO is compliant with the required standards Approximately 80 per cent of all applications completed within two months ● 22 days – low risk VET applications to add new courses scope (when all information has been supplied). ● more than two-thirds of all applications are in this category 9

10. Average application processing times 30 Sept 2011 31 Dec 2011 31 Mar 2012 30 June 2012 31 Aug 2012 31 Dec 2012 Applications finalised as a % of total applications received 31 Mar 2013 26.4% 52.8% 72.4% 74.1% 81.0% 87.1% 83.6% 10

11. ASQA’s regulatory approach ● a more robust framework of legislation and standards ● risk based and targeted ● audit focused on high risk 11

12. ASQA’s regulatory approach ● ensures risks to quality vocational education are well managed ● employs a strong compliance auditing and monitoring regime and a range of escalating sanctions ● recognises the need for innovation and flexibility in VET The regulatory model 12

13. ASQA’s regulatory approach Risk management Comprehensive risk management approach - the Risk Assessment Framework (s 190 of the Act) Three levels ● risk assessment of initial, renewal, scope applications (including financial viability risk assessment and fit and proper person assessment) ● structured risk assessment of RTOs and other providers ● analysis of system risks 13

14. ASQA’s regulatory approach ● Financial viability risk assessment ● Fit and proper person assessment ● Licensed outcome ● RTO risk rating Risk assessment of applications 14

15. ASQA’s regulatory approach Risk assessment of providers Risk indicators ● Likelihood indicators Performance Governance ● Impact indicators Profile Approach consistent with AS/NZS ISO 31000:2009 – standards for risk management (Published by Standards Australia) 15

16. ASQA’s regulatory approach RTO risk rating – indicators and factors Performance ● AQTF/VQF audit history ● ESOS audit history ● substantiated complaints ● other valid performance data Governance ● financial viability data ● recent fundamental changes to scope of operations ● reliance on partnering organisations ● transparency of organisational ownership and planning Total likelihood rating 16

17. ASQA’s regulatory approach Profile ● scope of registration (number of training packages, range of AQF levels) ● delivery of training leading to licensed or regulated outcome ● delivery of training to overseas students in Australia ● delivery of training offshore ● mode of delivery and core student clientele Total impact rating Overall rating - HighMedium Low RTO risk rating - indicators and factors 17

18. ASQA’s regulatory approach Risk management - analysis of VET system risks ● data from audit outcomes about compliance trends ● feedback from industry bodies (ISCs and industry regulators) and professional associations ● complaints data and trends ● state/territory/Australian government intelligence (e.g. apprenticeship regulation, purchasing, DIAC) ● analysis of data based on quality indicators including student and employer outcomes and visa data 18

19. ● systematic and rigorous ● outcomes focused ● evidence based ● flexible ● fair, open and transparent ● moderated Rigorous assessment of courses for accreditation ASQA’s regulatory approach Rigorous audit approach 19

20. ● all applications for initial registration are audited and all renewal and change of scope applications are assessed for risk ● all initial registration applications to have a site visit and follow up audit (usually around 12 months) ● higher risk applications for registration renewal or change of scope referred for audit ● audits can be undertaken at any time to assess compliance with the VET Quality Framework ASQA expects the applicant organisation or RTO to demonstrate how they comply with the standards. ASQA’s regulatory approach 20 Audit

21. ASQA’s regulatory approach Standards where non-compliances have occurred Initial registration: ● standard 4 requires the applicant to have strategies in place to provide quality training and assessment across all of its operations ● must have all required resources in place before applying to ASQA 21

22. ASQA’s regulatory approach Standards where non-compliances have occurred Re-registration: ● standard 15 requires NVR registered training organisation to provide quality training and assessment across all of its operations ● training and assessment does not meet the requirements of the Training Package and/or individual units of competency ● insufficient evidence to demonstrate vocational competence, and/or training and assessment competence of trainers and assessors 85% of refused applications involved critical non-compliance with standard 4 or standard 15 22

23. ASQA’s regulatory approach Non-compliances with the standards as prescribed in the National Code of Practice for Registration Authorities and Providers of Education and Training to Overseas Students 2007. These standards set out the obligations on registered providers in delivering education and training to overseas students. Most non-compliances relate to: ● marketing information and practices ● student engagement before enrolment ● formalisation of enrolment ● student support services, and ● staff capability, educational resources and premises 23

24. ASQA’s regulatory approach Non-compliance is commonly identified because: ● student records don’t match student letters of offer ● changes to courses are not reflected in the evidence provided at audit ● records do not align with course details ● all support staff are not able to demonstrate an understanding of the ESOS Act and the National Code as they relate to their positions ● teaching staff and/or trainer and assessor qualifications and experience do not meet the benchmarks set by the NVR standards, the Training Package requirements or the ELICOS standards 24

25. Developing a strategic approach to VET regulation ● industry engagement with employer organisations, unions, industry skills councils, student organisations and other peak bodies ● stakeholder consultation ongoing to identify good and poor practises in VET ● proactive action to be taken in areas of identified risk ● increased dialogue with stakeholders about the role regulation can play in quality improvement 25 Engagement with industry, students and government

26. Developing a strategic approach to VET regulation Strategic industry reviews ● strategic reviews are the next stage of VET regulation ● identify and target VET system risks ● strategic reviews target ASQA’s resources to ensure training meets the standards ● a program of Strategic Industry Reviews targeting ‘hot spots’ in the VET sector 26

27. Developing a strategic approach to VET regulation Strategic industry reviews Currently three reviews underway to be completed by end July 2013 ● the entry-level occupational health and safety training required to work on construction sites in Australia, commonly known as the ‘White Card’ ● the aged and community care sector ● inappropriate practices and marketing by RTOs 27

28. Developing a strategic approach to VET regulation Engagement with training providers ● development of online services to manage provider applications – enhancements ongoing including online CRICOS applications ● continuing a program of information sessions with training providers ● short online videos about registration and accreditation processes in development ● contributing to the NSSC review of the standards to clarify issues raised by providers ● online audit survey for providers to give ASQA feedback ● maintaining a dedicated ASQA Info line and email service 28

29. Developing a strategic approach to VET regulation Engagement with training organisations’ peak bodies ● identify issues of concern ● discuss ways to improve efficiency of regulation ● discuss strategic issues of mutual concern ● find better ways to do things 29

30. Next steps ● refine audit strategy ● more focus on monitoring audit of high risk areas risk areas/less on change of audit scopes ● NSSC review of National Standards 30

31. More information ● ASQA website – www.asqa.gov.au ● call the ASQA Info line – 1300 701 801 ● email to – enquiries@asqa.gov.au ● subscribe to the ASQA Update ● online applications and payment of fees – ASQAnet 31