Document ID: chunk:federal_register_of_legislation:F2021C01014:clause:1_4:p2
Version: federal_register_of_legislation:F2021C01014
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 2/3)
Character Range: 7603–10672

National VET Regulator requires an NVR registered training organisation to demonstrate its financial viability at any point in time, upon request.
 (2) The assessment of an organisation's financial viability risk is directed at evaluating the likelihood of its business continuity, and its capacity to achieve quality outcomes.  In particular, the assessment informs a judgement about whether the organisation has the financial resources necessary to:
            (a) acquire the requisite assets and physical resources to deliver all qualifications on its scope of registration
            (b) employ sufficient appropriately qualified staff to cover the courses for which it takes enrolments
         (c)  provide appropriate levels of student services to students
         (d)  remain in business to ensure that each student can achieve completion
            (e) meet the above requirements, even in an unsure environment.

Part 3 Financial viability risk assessment requirements

7 Obligation to submit to assessment at initial registration
 (1) An organisation seeking registration with the National VET Regulator must submit to an assessment of financial viability risk by a qualified independent financial auditor nominated by the National VET Regulator, as part of the assessment of the application for registration.
 (2) The assessment will include an assessment of the source and reliability of the evidence supporting the assumptions underlying the projections.
 (3) The obligation to submit to the assessment referred to in (1) applies also to parent organisations, affiliated companies or organisations that have a vested interest in the organisation.

8 Obligation to submit to assessment at any time
 (1) An NVR registered training organisation must submit to an assessment of financial viability risk by a qualified independent financial auditor nominated by the National VET Regulator at other times during the registration period as determined by the National VET Regulator in accordance with the Risk Assessment Framework.
 (2) The obligation to submit to the assessment referred to in (1) also applies to parent organisations, affiliated companies or organisations that have a vested interest in the organisation.

9 National VET Regulator may waive requirement where risk is considered low
 (1) Where the National VET Regulator considers the financial viability risk of an organisation is low, it may waive the requirement for a financial viability risk assessment.
 (2) The waiving of the requirement does not remove the obligation in section 8 to submit to a future assessment if required by the National VET Regulator.

Part 4 Form and content of financial viability risk assessment

10 Assessment to be in required form
  Financial data and information must be submitted to the qualified independent financial auditor nominated by the National VET Regulator in a format that is in accordance with Australian Accounting Standards.

11 Assessment to be against common indicators
 (1) The assessment of financial viability risk will be undertaken