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Standard 3

Effective financial management procedures

The RTO has effective financial management procedures in place.

Standard 3.1

The RTO must designate the Chief Executive or a person with direct access to the Chief Executive, who has defined responsibility and authority to:
  1. ensure that the RTO has financial management policies in place and that it complies with these policies;
  2. monitor and report on compliance with its financial management policies and procedures, for review and as a basis for improvement; and
  3. when requested, provide the State or Territory registering body that has registered it with a formal assurance that the RTO has sound financial management standards for matters related to the RTO's scope of registration and scale of operations.
Standard 3.2

The RTOs accounts must be certified, at least annually, by a qualified accountant:
  1. with membership of:
    a.   Certified Practising Accountants Australia
    b.   the Institute of Chartered Accountants of Australia, or
    c.   the National Institute of Accountants, or
  2. otherwise registered as an auditor with the Australian Securities and Investment Commission and, on request, the report must be made available to the State or Territory registering body that has registered the organisation.

Standard 3.3

The RTO, if requested by the State or Territory registering body that has registered it, must obtain, and make available to the State or Territory registering body, a full audit report from a qualified independent accountant:

  1. with membership of:
    a.   Certified Practising Accountants Australia
    b.   the Institute of Chartered Accountants of Australia, or
    c.   the National Institute of Accountants, or
  2. otherwise registered as an auditor with the Australian Securities and Investment Commission.

Standard 3.4

The RTO must document and implement systems to protect fees paid in advance.

Standard 3.5

The RTO must have fair and reasonable refund policies.