Sitting in a hotel room in the far north of Australia in the wet season means that nothing dries. I wiped down the benches, and they remain wet an hour later, my laptop has dampness on the keyboard as I open it to type up this blog, my keys are damp. I love the moist air of the tropics, the feeling on my skin that I never get in the dry when I am at home, it a blessing. I have just hung up the telephone from someone thinking about RTO registration. I bet they weren’t standing outside in the wet (sheltering) from the pouring rain!
The conversation went along the lines of:
- How long will it take,
- What do I need to do and
- What qualifications do I need (or my trainers and assessors need)
I find these are common questions so wanted to assist where I can.
The first one, “How long will it take?” has been answered by ASQA recently; the ASQA Application processing times are shorter if the RTO is compliant, and everything is done correctly.
The first step is where the financial risk for an applicant / RTO at initial registration and renewal of registration is considered. Financial risk indicators focus on the financial viability of an applicant / RTO and the potential impact on the delivery of quality training and assessment services and outcomes. The financial risk is to show that you have the resources to support the business. ASQA want you to have a sustainable business. So do I.
It is more about getting the figures right then having an amount in the bank. ASQA have recently come out and said there is no requirement for an organisation to demonstrate any specified minimum value of total assets. However as a business owner I still recommend that you are able to show at least six months of funds at your disposal to cover capital improvements, rent or commercial mortgage payments, salaries, advertising and marketing costs and other general start-up costs. Even if it is for your own and family sanity.
To see the ASQA information sheet go to: http://www.asqa.gov.au/verve/_resources/FACT_SHEET_Financial_viability.pdf
What do I need to do
Well in essence you need to review the whole of the User Guide for the New Standards. Then implement actions that show you can run a successful RTO. In assessing the quality of business planning undertaken, ASQA considers the following information:
- Evidence of market research
- Financial budget projections, including the details of assumptions underlying projections (revenue, student enrolments etc.)
- Clarity of strategies for training and assessing students
- Demonstrated understanding of the VET Quality Framework
- Appropriate consideration of resources, staffing, equipment and assets required to deliver the plan
- A risk plan for your business and appropriate mitigation strategies
What qualifications do I need (or my trainers and assessors need)
Trainers and assessors qualifications; for your trainers it is about showing vocational competency to what they will be delivering and assessing against. This must be demonstrated through recent experience within the industry of the trainer/assessor and a detailed matrix against the units. The key here is to identify industry experts, who are currently interacting within their industry, to deliver the training and assessment. Ensure they have the appropriate training and assessment qualifications, keep up with their professional development in training and assessing and their industry competency. For you; this depends on whether you are intending on being a trainer.