2. Exploring The Quality & Compliance Challenges Facing Training Organisations - An RTO’s Experience(s) A Presentation To The VISTA Quality & Compliance Conference Presented By:Fred Brennan, CEO Vostro Institute Of Training 5 th July 2013

3. Welcome About Vostro Our Compliance Journey Scorecard On Compliance Practice Compliance Gatekeepers (Villains Or Victims) Where To From Here

4. Welcome: Thank You For The Opportunity To Present: – My Name Is ……………………………. – Who I Am ………………………………. – My Background ……………………….. About VISTA – raising the status of the VET profession; – promoting a deeper understanding of applied learning in VET; – supporting VET practitioner professionalism. VISTA does this by: – connecting practitioners with emerging national and state VET policy and strategy.

5. About Vostro: Origins: – Established in 2008 – A Victorian-based RTO – Main office located in Melbourne’s west. What We Do: Deliver training in Courses under the AQF into targeted high skills, high demand, high priority industries including: – Transport & Logistics- Manufacturing – Business- Wholesale & Retail – Community Services- Aged Care

6. What We Also Do: We also deliver LEAN-Based tailored training (blended qualifications) solutions in: – LEAN Operations- LEAN Logistics Operations – Logistics Leader- LEAN Manufacturing Leader – Business Services Leader Sizing Data: – Enterprise Client Base1,800+ Industry Clients – Student Base3,800+ Successfully Completed Or In Training – Annual Turnover$6.0M – Staff40 (incl. 15 Casuals) – ContractedTrainers15

7. Our Compliance Journey Vostro’s compliance obligations delivered so far in 2013: Re-Registration Audit (VRQA) Sep 2012 - Jun 2013 Re-Registration Audit (VRQA) 6 Months Skills Vic Internal Audit Process (SV) Sep 2012 - Jun 2013 Skills Vic Internal Audit Process (SV) 3 Months (EFT) Annual Financial Statements Audit (SV) May 2013 - Oct 2013 Annual Financial Statements Audit (SV) 3 Months Skills Vic 2014 Contract Process (SV) Oct 2013 - Dec 2013 Skills Vic 2014 Contract Process (SV) 3 Months Additions To Scope-1 (VRQA) Nov 2012 - Jan 2013 Additions To Scope-1 (VRQA) 2 Months Additions To Scope-2 (VRQA) Jun 2013 - Aug 2013 Additions To Scope-2 (VRQA) 2 Months SANs, Training Package Revisions (VRQA) Jan 2013 - Dec 2013 SANs, Training Package Revisions (VRQA) 1 Month (EFT) BAS, PRT, IAS-PAYG, SGC. (ATO, SRO) Jan 2013 - Dec 2013 BAS, PRT, IAS-PAYG, SGC. (ATO, SRO) 1 Month (EFT) Buildings & Infrastructure (Local Govt) Jan 2013 - Dec 2013 Buildings & Infrastructure (Local Govt) 1 Month (EFT) Governance - Strategic & Business Planning (VAAB) Jan 2013 - Dec 2013 Governance - Strategic & Business Planning (VAAB) 1 Month (EFT) by the Vostro Compliance Manager supported by the CEO.

8. Scorecard On Compliance Practice Merits Of Focus On The Following: ( My Score C- ) – Policy & Procedural Completeness – Training Facilities Site Compliance (Given Workplace Training Reality) – Strategic Plans, Business Plans, HR Plans, Capital Plans – Skills Matrices, SANs, Materials & Marketing & Websites Content Merits Of Absence Of Focus On The Following: ( My Score D- ) – Measurable Quality, Outcomes, Outputs & Outcomes Including: - Unmet Industry Skills Priorities – Positioning Australia For The Global Economy Unmet Skilled Labour Demand Priorities ( DEEWR – ABS Regional & Industry Survey – May 2103) Unmet Under-Qualified Training Outcomes Training Facilities Site Compliance Perceived Imbalances In Compliance Coverage - RTOs & TAFE ( My Score C-) – Financial Viability Assessment & Responses – Annual Financial Statements Audits – Re-Registration Audits - Non-Compliances& Remediation

9. Compliance Gatekeepers (Villains Or Victims) – The Upside Down Bureaucracy Pyramid Federal Ministries & Departments (Treasury, Industry, Training) State Ministries & Departments (Premier, Treasury, H Ed & Skills) University TAFE Divisions (Heavily Bureaucracy-Based) TAFE Institutes (Heavily Bureaucracy-Based) – Diminished/Diminishing Gatekeeper Capacity VRQA & Skills Vic Relatively Choked By Bureaucracy Relatively Small Direct Training Delivery Relatively Small Training Content & Quality Validation Capacity

10. Where To From Here – The Upside Down Bureaucracy Pyramid Exists – The VRQA & Skills Vic Are Victims Of “Bureaucracy Strangulation” – Depleted Gatekeeper Quality Function & Focus Means: Assignment To Irrelevance Tick & Flick Standards & Policies “Inventory Checking” Random Spot-Checking Only – No Systematic Review Capability Increasing Instances Of Blatant Abuses – The 4-Hour Spray Painter Cert III RPL Qual (Plus Forklift & Tray Truck Licence) – The Cert IV – Business Attained in 6 Weeks “Off-Campus/Remote Study” Promotion – Instances of Wrongful Enrolments Into Cert IV’s With No Prospects Of Employability – Fast-Track Real Competition With TAFEs: Remove Any Remaining “Above-The-Line” TAFE Support Funding” Implement National Competition Policy & Principals Reforms To Allow: – Access (On Commercial Terms) To Publicly-Funded TAFE Capital Infrastructure – Remove Structural & Legislative Barriers To Competition By Invoking TPA – Part IV

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