Are RTOs only compliance driven to pass a regulatory performance assessment?
More and more we are finding RTOs having a reactionary approach to compliance, once they have been notified of an upcoming performance assessment by the regulator ASQA, rather than a systematic and preventative approach which is ongoing.
Calls are received by AIS at the last minute once the notification has been received from the regulator, and we are given limited time to sample a snapshot of the RTOs operations, which includes a strategic approach to the most likely evidence being requested and sampled by ASQA based on the RTO operations and the associated risks.
Whether the neglect has been due to lack of understanding of the legislative requirements or deliberate mismanagement, is unknown in most cases, however, we must remember the RTO’s obligations to operate compliantly and the responsibilities under the NVR ACT (National VET Regulator Act 2011), including but not limited to the Fit and Proper Person Declaration of the key management team and owners. A RTO owner and CEO should be involved and fully aware of its compliance requirements and ensure they understand it, as well as continuously drive the RTO towards compliance.
Whilst AIS endeavours to remediate existing non-compliances with RTOs, and design and construct systems to ensure compliance moving forward in the pursuit of continuous improvement, there is only so many miracles that can be achieved in the very limited time available; – once the performance assessment and opening meeting has been announced by the regulator. Teams in this compliance space often work night and day, seven days a week, to achieve only a fraction of what should have received attention on a daily basis over previous years. Trying to explain this to owners, who are now under duress and ‘passing audit’ focused rather than (previously) solely income and profit driven, is a difficult task, as stress creates selective hearing, and after all; they have hired you to perform miracles in record time.
AIS tries to demonstrate the extent of essential compliance and the remediation process necessary through a transparent project management plan, and post audit, attempts to leave the RTO with very clear parameters on the compliance benchmarks and expectations. However, following conclusion of a successful audit, we frequently get the impression, that now the RTO has achieved reregistration for 5 or 7 years, the ‘pressure is off’ and they can just return to ‘normal’ operations based on their (somewhat misguided) entrenched ideas of the RTO world.
All too often, the regulator is seen as the ‘big bad policeman’ with a stick, that is an inconvenience to their operations, when in fact the team at AIS have never had an issue with the regulator or its auditors. Our experience has been that of consultation, coordination and collaboration to achieve a desired outcome. That is of course, if the RTO is prepared to demonstrate a willingness to comply and work within the legislative framework.
Most businesses see an audit as an inconvenience, when in fact it is an excellent opportunity to identify compliance gaps, and collaboratively arrive at optimal solutions. It is also an opportunity to identify better ways of doing things, more efficient and effective ways to run operations and stay compliant. Again, something that deserves constant and ongoing attention, not simply something that should be addressed 10 business days prior to a performance audit with the regulator.
Education and awareness is the key, and the regulator certainly offers ample opportunity for seminars/webinars, Fact Sheets and professional development to ensure RTO owners and their staff are well educated about the compliance requirements, but also understand what that should look like as well as feel supported in their compliance activities. Various staff are usually always on hand to discuss or clarify issues.
AIS encourages continuous education and development in the compliance arena for all owners and staff, seeking support and a second opinion if needed, and looking at compliance as an ongoing necessity, rather than a last-minute reactionary move in a response to an upcoming audit. Conducting regular compliance health checks is a good way to stay on track and enables identification of weak areas or gaps early. Something AIS now offers as a 2-day fixed price option, for those operators particularly budget conscious.
A non-compliant RTO has a limited lifespan and should get attention sooner rather than later.
Some food for thought.
If you have any questions about compliance or would like us to come in and conduct a 2-day health check, please feel free to contact us.
AIS invites discussion and comments on all topics.
Leadership is something we take very seriously and take great pride in and have extensive personal experience in. From running commercial organisations to leading the project management in offshore yacht racing campaigns for a Sydney to Hobart Yacht Race as a skipper, we understand that great leadership is demonstrated and practiced not forced, and brings with it; great respect. With effective leadership, people will follow.