Compliance and Risk in the VET Sector in Are you ready for risk based auditing?

Transcription

1 Compliance and Risk in the VET Sector in 2016 Are you ready for risk based auditing?

2 Today s Presenters

3 Tell us why you are interested in this webinar

4 What we will cover today Interesting points from ASQA research- what is surprising - what hasn t changed ASQAs new risk approach to auditing what it means for RTOs Good for business approach to compliance management

5 Compliance rate of RTOs seeking re-registration Standards SNR 15: Quality Training and Assessment SNR 16: Access & Equity for clients SNR 17 : Responsive management systems Percentage of compliance 61% 52% 56% Snr 18: Governance 62%

6 Provider compliance with Standards for RTOs 2015 Standards Standard 1: Training and Assessment Standard 2: Quality Assurance Standard 4: Accurate and accessible information Standard 5: Learner is informed and protected Percentage of compliance at audit Percentage of compliance after rectification 25% 77% 26% 77% 58% 90% 59% 91%

7 What is ASQA s approach? Transactional Identifies risk in the system Develops treatments to mitigate those risks

8 What is ASQA s main concern? The primary risk for ASQA to manage is an RTO certifying that a person has competencies that do not reflect his/her skills, knowledge and attitudes. The potential damage flows not just to the individual, but to employers, and the wider community. (Regulatory Risk Framework, Version 1.0 April 2016)

9 ASQA s approach

10 Managing Systemic Risk Risk Identification (Environmental Scanning) Monitoring and Review (Reviewing the effectiveness of treatments) Analysis and Evaluation (Likelihood & Impact measures) Communication and Consultation (Round tables, media scanning etc.) Risk Treatment (Information sharing and targeted audits)

11 Managing Provider Risk Shift from provider risk rating to provider profile A provider profile is fluid in nature and does not translate into a single score or rating of any kind.

12 Risk Identification ASQA has established a range of mechanisms for identifying and assessing provider risk.

13 Risk Analysis and Evaluation ASQA identifies concerns through monitoring regime Assesses risk with assessment matrix Matrix combines risk assessments Regulatory obligations The provider and the case

14 Analysis and Evaluation Regulatory obligations (standards or legislative provisions) breached or alleged to have been breached The outcome is the rating of each regulatory obligation as: low, medium, high or extreme. The provider and case- the risk presented by a provider, and the circumstances of the case under review. The outcome of this risk assessment is a rating for the provider and case of: somewhat concerning, concerning, serious or very serious.

15 Risks related to the provider and case Level of response Risks relating to the regulatory obligation low medium high extreme very serious serious concerning somewhat concerning

16 Provider profile and conduct Has an ongoing history of poor compliance and demonstrates an unwillingness to cooperate with ASQA. The alleged or proven behaviour is likely to have a severe impact on students and industry high Regulatory response ASQA tests or investigates breaches of regulatory obligation and ensure breaches are satisfactorily rectified. ASQA may amend or cancel a providers registration, issue written directions or initiate other enforcement options including prosecution. Occasionally fails to meet its regulatory obligations, but manages to rectify them before AQSA makes a finding with regard to those obligations. The alleged or proven behaviour is likely to have a major impact on students and industry. ASQA tests or investigates breaches of regulatory obligations and ensure breaches are satisfactorily rectified. ASQA may suspend or amend a providers registration, impose conditions on registration or apply civil penalty provisions. Is generally compliant, but sometimes does not meet its regulatory obligations and is able to rectify them during initial rectification periods. The alleged or proven behaviour is likely to have a minor impact on students and industry. ASQA tests breaches of regulatory obligations and may direct the provider to rectify breaches identified. ASQA may impose conditions on a providers registration or amend part of a provider s scope of registration. Have a strong history of ongoing compliance and are willing to meet their regulatory obligations. The alleged or proven behaviour is unlikely to have an impact on students and industry. low ASQA offers advice and guidance and allows opportunities to rectify breaches of regulatory obligations ASQA may issue a written direction to a provider.

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18 Case Study Analysis Regulatory Obligations Provider & Case Medium rating Concern regarding online learning, assessment & TAA delivery Concerning rating Good past performance but no track record in new course areas

19 Risks related to the provider and case Level of response Risks relating to the regulatory obligation low medium high extreme very serious serious concerning somewhat concerning

20 Provider profile and conduct Has an ongoing history of poor compliance and demonstrates an unwillingness to cooperate with ASQA. The alleged or proven behaviour is likely to have a severe impact on students and industry high Regulatory response ASQA tests or investigates breaches of regulatory obligation and ensure breaches are satisfactorily rectified. ASQA may amend or cancel a providers registration, issue written directions or initiate other enforcement options including prosecution. Occasionally fails to meet its regulatory obligations, but manages to rectify them before AQSA makes a finding with regard to those obligations. The alleged or proven behaviour is likely to have a major impact on students and industry. ASQA tests or investigates breaches of regulatory obligations and ensure breaches are satisfactorily rectified. ASQA may suspend or amend a providers registration, impose conditions on registration or apply civil penalty provisions. Is generally compliant, but sometimes does not meet its regulatory obligations and is able to rectify them during initial rectification periods. The alleged or proven behaviour is likely to have a minor impact on students and industry. ASQA tests breaches of regulatory obligations and may direct the provider to rectify breaches identified. ASQA may impose conditions on a providers registration or amend part of a provider s scope of registration. Have a strong history of ongoing compliance and are willing to meet their regulatory obligations. The alleged or proven behaviour is unlikely to have an impact on students and industry. low ASQA offers advice and guidance and allows opportunities to rectify breaches of regulatory obligations ASQA may issue a written direction to a provider.

21 What does all this mean for you? History of good performance Less regulatory intervention

22 From our experience.. Approach to compliance Reactive Separate focus (not integrated with business strategy) Systems Not integrated Lack of training People Incomplete skill set Begrudging buy in from staff and managers

23 Consequences

24 Good governance system Good for Business Approach to Compliance Structured Continuous Improvement Commitment

25 Governance system for a healthy RTO Systems People

26 Clear Purpose, Goals and Roles Vision/ Mission Statement Clear strategic and business goals Clear roles, position descriptions

27 Leadership Board CEO Team leaders Leadership culture

28 Building Relationships Communication strategies 1:1 meetings Regular newsletters Blog posts RTO Meetings Agenda items Professional development New resources Policy and process review Audits Internal 2 nd Party

29 Good for Business Approach to Compliance Proactive, engaged staff & managers Proactive monitoring Effective functioning & integration across the business Quality data & information across whole business

30 Structured Continuous Improvement A defined cycle Incorporates all business areas Embeds governance, compliance & risk Monitoring aligned with standards

31 Wrap Up Key Message Don t start with the standards Focus on growing a successful business Next webinar Maintaining a Healthy RTO 4th August

32 Products and Services Get Smart with Great Staff Guides RTO Policy and Procedures Manual Individual Policy Packs Continuous Improvement Scheduling documents Consultancy services A range of Audit Services Products at Contact us info@thelearningcommunity.com.au

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