Funding contracts come with additional compliance obligations for RTO’s to be aware of and to ensure risks are mitigated appropriately. There can be dire consequences for RTOs if contract compliance obligations are ignored and the result of negligence can adversely impact your business. The following information can assist your RTO with managing funding arrangements so you can meet your contract compliance obligations.

Marketing and student recruitment:

When advertising subsidised training courses your RTO should ensure that marketing materials (including websites and social media posts) comply with contract terms and conditions, directives and policies related to marketing and advertising. Most funding bodies have style guides for funding agreements that specify requirements to be used when promoting courses and outline the use of logos and government emblems that must be adhered to. Other conditions can include restrictions on offering inducements or gifts to parties in return for enrolment in funded courses. RTOs should have a process in place that ensures all marketing is reviewed for compliance before approval and publication when associated with a contract to mitigate any risk of a breach. When undertaking student recruitment activities particularly when in partnership with other parties such as job networks or recruitment agencies you must take care to ensure that you abide by the conditions of your funding agreement and you do not appear to be recruiting prospective students who are unsuitable for your courses. When you are dealing with disadvantaged candidates particularly you should ensure your recruitment processes are ethical and transparent to avoid breaching your contract terms and conditions. RTOs should ensure that sales staff are fully aware of the rules of these requirements when selling courses.

Enrolment practices:

RTOS must ensure processes are in place to determine eligibility of prospective students that meet the requirements of funding contracts prior to enrolment. This should include checklists and interview questions that ensure appropriate checks are conducted and supporting documentation gathered before enrolling students. Having thorough mechanisms in place pre-enrolment to confirm eligibility will ensure your RTO in not penalised financially down the track when your funder identifies from your data that students were not eligible to received subsidised training places in specific courses. RTOs should ensure course costings are reflective of the subsidy being provided and the actual expenses required to deliver the specific courses. The viability of the courses you deliver will be dependent on the most efficient delivery models you use and the level of subsidy your receive from the funding body. One of the most efficient delivery models that can be used is a hybrid one combining online learning with face to face practical delivery if required. You should consider your learner cohorts, their specific needs and training product/unit of competency requirements when determining how your courses need to be delivered.

Data quality and reporting:

To receive your funding payments without delay when claiming your RTO needs to ensure that AVETMISS data submissions are error free upon submission. Implementing processes to validate your data and correct errors before claiming will ensure no disruption to your income from funding contracts. Develop a compliance plan for all funding contracts in place that confirms your business has sufficient controls in place to ensure no breach of terms and conditions can occur that will cause financial and reputational damage to the RTO. One way risks can be mitigated in your RTO is by implementing organisational policies and procedures. Funding agreements typically require RTOs to submit reports at regular intervals in addition to the data submissions required. These progress reports tend to be a requirement of contract terms and conditions and there can be penalties if they are not submitted in a timely fashion. RTOs should ensure they develop a reporting schedule and have appropriate management oversight of these requirements so as to prevent breaches that affect your RTOs contract performance. Failure to report appropriately could affect your RTO securing future contracts in some cases.