Advertisements

Vocation takes a big $ hit over settlement on Victorian VET compliance issues

27 October 2014

………………………………………………………………………………………………………

The ASX-listed training provider Vocation has announced a settlement  with the Victorian Department of Education and Early Childhood Development (DEECD) in relation to its review into two of Vocation’s Registered Training Organisations (RTOs), BAWM and Aspin.  Vocation will surrender  $19.6 million in government funding, and restructure its Victorian  operations under the direction of a new CEO- that is, the former CEO has walked.

…………………………………………………………………………………………………….……

Vocation

 

Vocation has agreed to surrender $19.6 million in Government funding to BAWM and Aspin but will receive $9 million in withheld Government funding to its two other Victorian RTOs. Vocation will also undertake a series of measures to ensure continuous improvement in line with the VRQA Guidelines for VET and AQTF Continuing Standards for Registration. Vocation’s previously announced Quality Advisory Committee, headed by former ACPET chief Claire Field, will have full oversight of future continuous improvement activities within its Victorian businesses.

Vocation has also announced that it intends to continue the restructure of its Victorian business.  The restructure involves the discontinuation of the use third party training and assessment providers and an overhaul of the senior management team in Victoria, which will include Ross Robinson taking over as CEO of Vocational Education and Training and overseeing the restructure.  BAWM and Aspin will cease to enrol new students and relinquish government funding contracts in January 2015, although they can continue fee-for-service training.

The DEECD review  concluded that:

  •  There had been an over reliance on third parties to identify and refer students for enrolment in those qualifications, which resulted in some students being  enrolled  in  inappropriate  courses for their needs; and
  • There were inadequate controls in place to manage the performance of  third  parties  delivering training and assessment, resulting in  some  students  experiencing  a  lower  quality  training experience than intended for their job seeking

As a result of the review’s findings the DEECD has determined, and Vocation has agreed, that:

  • Part of the funding relating to the three qualifications will be  forfeited  from  the  total  amount  of funding that has been withheld for BAWM and Aspin over the period of the review
  • The remainder of the funding that was withheld by the DEECD during the course of the review will be released to Vocation
  • Although BAWM and Aspin will continue to train students currently enrolled, with normal funding arrangements for these enrolments to apply, all new enrolments in Victoria are being consolidated under Vocation’s two other RTO’s (which hold  all necessary accreditation needed  for Vocation’s Victorian operations). At the end of the training of BAWM and Aspin students, BAWM and Aspin will relinquish their funding contracts (expected to be early 2015)
  • All affected students will be contacted over the coming weeks in collaboration with DEECD
  • Aspin, which delivered the Certificate II in General Education for Adults, a foundation skills qualification, is no longer on the foundation skills approved provider list, however, one of Vocation’s other Victorian RTO’s has been added to the foundation skills approved provider

Vocation had consistently advised that the  issues raised  by  DEECD were able to be resolved without a material effect on Vocation.  In the event, however,  a significantly larger  payment  from Vocation than expected was required by DEECD to settle the concerns it had with BAWM and Aspin.

Excerpt from Vocation statement

Following the settlement of all issues arising from the recent review by DEECD of three qualifications offered by RTOs BAWM and Aspin we set out the basis of Vocation’s continuing participation in the VTG.

  1. BAWM and Aspin will complete the training of those students currently enrolled and who are not subject to a full reversal of funding under the agreement with DEECD.  Normal funding arrangements will apply until either students complete their qualifications or 31 January 2015, by when BAWM and Aspin have agreed to relinquish their contracts. BAWM and Aspin remain as registered training organisations and can participate in the fee for service training market in Victoria.
  2. Vocation operates other RTOs in Victoria which hold current VTG funding contracts. These RTO’s possess the scope to offer all training currently offered by BAWM and Aspin.  These RTOs are able, and intend to, enrol students across their scope without limitation while they continue to comply with regulator and VTG requirements. The Department will meet with the Chair of Vocation’s new quality oversight committee Claire Field, on a regular basis.

 

See
Vocation statement

 

Advertisements

Enter your email address to follow this blog and receive notifications of new posts by email.

%d bloggers like this: