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Financial viability

Standards: Clause 7.2

The RTO satisfies the Financial Viability Risk Assessment Requirements.

Definition: Financially viable

Financially viable means the ability of an organisation to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while delivering quality training and assessment services and outcomes.

Definition in National VET Regulator Financial Viability Risk Assessment Requirements Instrument 2021

Information required from RTO

The Financial Viability Risk Assessment Requirements Instrument lists common risk indicators. Information that may have to be submitted includes, but is not limited to:

  • Independent reviews of financial projections
  • Business planning including forecast income streams and forecast expenditure
  • Assets and liabilities
  • Financial statements audited by an independent qualified auditor
  • Financial records for the previous 12 months, including profit and loss, balance sheets
  • Cash flow and bank accounts
  • Short term budgets and forecasts, including assumptions
  • Information on current and projected student enrolments, including assumptions
  • Tax records
  • Information about current debts and debtors, credits and creditors, loans and repayment
  • Plans, and information on any legal disputes
  • Inter-company dealings, transfers, ownerships and loans
  • Contingent liabilities
  • Ultimate ownership details

QCI consideration

ASQA may require your RTO to provide evidence of acceptable financial viability risk at any time. Does your RTO have a documented process for gathering and submitting the required information, including who has responsibility for doing this?