FDV-0001—Financial Viability Risk Assessment Pack
Organisations applying for initial registration as a:

registered training organisation

registered CRICOS provider
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About the Australian Skills Quality Authority
The Australian Skills Quality Authority (ASQA) is the Australian Government agency responsible for the registration
and regulation of most organisations that provide nationally recognised training across Australia’s vocational
education and training (VET) sector.
ASQA also registers and regulates organisations that provide VET—and most organisations that provide Englishlanguage teaching—to overseas students visiting Australia on a student visa.
About this FVD-0001—Financial Viability Risk Assessment Pack
This pack must be completed by all applicants seeking initial registration with ASQA as either:

a registered training organisation (RTO)

a provider registered under the Education Services for Overseas Students Act 2000 (ESOS Act) and listed on
the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS).
Note
The appropriate persons must complete and submit this pack to ASQA before or at the same time as submitting an
application for initial registration.
Financial viability—frequently asked questions
Why do I need to complete this pack?
An organisation seeking initial registration with ASQA must complete this pack to demonstrate that the organisation
has been independently assessed as a financially viable business entity at the time its initial registration application is
submitted.
ASQA will use this independent assessment as one of a range of regulatory checks when making a risk-based
consideration about whether to approve the organisation’s application.
Disclaimer
The provision of the FFV-0001–Chief Executive Officer/Principal Executive Officer Certificate and the FFV-0003—
Nominated Accountant’s Certificate for New Business Entities will contribute towards ASQA’s decision to approve
an application for initial registration. However, the submission of this pack does not guarantee approval of an
application.
Why does ASQA require this information?
Both the National Vocational Education and Training Regulator Act 2011 (NVR Act) and the ESOS Act enable ASQA
to assess an organisation’s financial viability risk when considering its registration.
Both Acts require ASQA to apply a risk management approach when making judgements about how financial viability
risk may be assessed or benchmarked.
The information provided in this pack:

helps ASQA manage the financial viability risk of providers that it registers and regulates, and
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
informs ASQA’s decision to approve or reject registration of an organisation under the NVR Act and/or ESOS
Act.
What is ASQA’s authority for requiring this information?
For registered training organisations:
Section 24 and Section 157(4) of the NVR Act states:

an NVR RTO must satisfy the Financial Viability Risk Assessment Requirements legislative instrument, and

the National VET Regulator must apply the Risk Assessment Framework in performing its functions.
Section 22(1) of the NVR Act states that an NVR RTO must comply with the Standards for NVR Registered Training
Organisations (revoked by the Standards for Registered Training Organisations (RTOs) 2015). Clause 7.2 of the
Standards for Registered Training Organisations (RTOs) 2015 requires that an RTO satisfies the Financial Viability
Risk Assessment Requirements.
For CRICOS providers:
Under section 7A of the ESOS Act, ASQA is the designated authority for organisations registered or seeking
registration on CRICOS to provide VET courses to overseas students visiting Australia on a student visa.
ASQA is also the designated authority for organisations registered or seeking registration on CRICOS to deliver most
English Language Intensive Courses for Overseas Students (ELICOS) to overseas students visiting Australia on a
student visa.
Section 9AH of the ESOS Act requires ASQA to ensure that providers have:

a demonstrated capacity to provide education of a satisfactory standard, and

have an appropriate business model, including access to adequate financial resources.
Will I be required to submit further information?
ASQA may require your organisation to undergo any additional assessment of financial viability risk that it deems
necessary at any time throughout your organisation’s registration period.
As a condition of their registration, organisations approved for initial registration are required to cooperate with ASQA
in any ongoing financial viability risk assessment.
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Completing the FVD-0001—Financial Viability Risk Assessment Pack
The pack comprises five sections. You must complete each section. You will require the assistance of a Nominated
Accountant to complete the pack.
Nominated Accountant
A Nominated Accountant is an external and independent accountant engaged by an organisation applying for
registration.
The Nominated Accountant must be:

a member of one or more of the following professional bodies: CPA Australia, The Institute of Chartered
Accountants in Australia or The Institute of Public Accountants, and/ or

registered with the Australian Securities and Investment Commission as an auditor.
Section 1—Mandatory questions

The applicant must answer ‘Yes’ to each of the three questions in this section.

ASQA will not consider your application unless you have answered ‘Yes’ to all three questions.
Section 2—Questionnaire

The applicant must answer four questions regarding their business and its financial situation.
Section 3—Organisation type

The applicant must nominate the entity type that best identifies their organisation.

If you select category ‘c’, you must provide the name of the assessing authority and the date of the
assessment, and attach evidence of this assessment.
Section 4—Ratios

It is mandatory for every applicant to complete and submit ‘Section 4—Ratios’, unless the applicant’s
organisation falls into one of the exclusion categories defined on page 5.

The applicant may be assisted by their Nominated Accountant in filling out this section.

The applicant must provide financial viability risk assessment ratio calculations regarding the organisation.

Each Financial viability risk assessment ratio table must be completed. You must include a year-end date for
each column and include a ratio, percentage or number in each individual ratio box.

Given that the applicant is likely to be a new business entity with no financial trading history, the calculations
must be based on forecasted financial information for the next 12 and 24 months. In the case of entities with a
trading history, actual financial information should be used.
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Exclusion categories
All applicants for initial registration must complete each section of this form and provide completed and signed
copies of the certificates in Section 5. The exception to this is those applicants which fall under one of the following
exclusion categories:

an organisation that is fully owned and operated by an Australian Government, or a state, territory or local
government department or agency

a university, school or institute established under Australian Government, or state or territory government
legislation, or

an organisation that has been formally assessed within the last six months by ASQA, or another Australian
Government department or agency, as being ‘financially viable’. You must provide evidence of this
assessment when completing Section 3.
Organisations which meet at least one of the above criteria need only to complete Section 1, 2, 3 and the
FFV-0001—Chief Executive Officer/Principal Executive Officer Certificate.
However, the organisation types listed above are not ‘exempt’ from any future financial viability risk assessment
and may, at any time prior to or during registration, be required to undertake any financial viability risk assessment
that ASQA deems warranted.
Section 5—Certificates

This section contains two certificates that must be submitted, where applicable, as part of this document:
o
FFV-0001—Chief Executive Officer/Principal Executive Officer Certificate
o
FFV-0003—Nominated Accountant’s Certificate for New Business Entities
Submitting the FFV-0001 certificate

It is mandatory for every applicant to complete and submit the FFV-0001 certificate, regardless of their
organisation entity type.

The FFV-0001—Chief Executive Officer/Principal Executive Officer Certificate is to be completed and signed
by the Chief Executive Officer or the Principal Executive Officer of the applicant organisation on a date prior
to, but no more than 30 days prior to, the application for registration being submitted.
Submitting the FFV-0003 certificate

It is mandatory for every applicant to complete and submit the FFV-0003 certificate, unless the applicant’s
organisation falls into one of the exclusion categories defined above.

Organisations that fall into one of these exclusion categories need only to complete Sections 1, 2 and 3 of this
pack and the FFV-0001—Chief Executive Officer/Principal Executive Officer Certificate. However, the
organisations shown above are not ‘exempt’ from any future financial viability risk assessment and may, at
any time prior to or during registration, be required to undertake any financial viability risk assessment that
ASQA deems warranted.

Only a Nominated Accountant can complete and sign the FFV-0003—Nominated Accountant’s Certificate for
New Business Entities.

The FFV-0003—Nominated Accountant’s Certificate for New Business Entities is to be completed and signed
by the Nominated Accountant on a date prior to, but no more than 30 days prior to, the application for
registration being submitted.

The certification of financial viability requires the professional judgement of a Nominated Accountant
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
Given that the applicant is not likely to have financial trading history, the Nominated Accountant will certify in
the FFV-0003—Nominated Accountant’s Certificate for New Business Entities that the entity should be
financially viable based on the forecasted financial information provided for the next 12 and 24 months.
Submitting the FVD-0001—Financial viability risk assessment pack
Once you have completed all sections of this pack, scan and submit by email to ASQA at
financialviability@asqa.gov.au.
If you are required to provide evidence of an assessment at Section 3, ensure you have scanned this evidence and
included it with your completed FVD-0001 - Financial viability risk assessment pack.
Retain the hardcopy signed originals of the pack for your records.
More information and help
References
ASQA website
National Vocational Education and Training Regulator Act 2011
Financial Viability Risk Assessment Requirements 2011
Standards for Registered Training Organisations (RTOs) 2015
Risk Assessment Framework
Education Services for Overseas Students Act 2000
National Code of Practice for Registration Authorities and Providers of Education and Training to Overseas Students
2007
ELICOS Standards 2011
ASQA Info line
For further assistance, please call the ASQA Info line on 1300 701 801 between Monday and Friday, 9.00 am to
7.00 pm AEST, or email your enquiry to enquiries@asqa.gov.au.
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Definitions
The following definitions are provided to assist applicants and their Nominated Accountants to populate the
FVD-0001—Financial viability risk assessment pack and ensure consistent understanding and application of the
financial statement information in the preparation of the ratio calculations.
Term
Definition
Financial Viability
A business’s ability to generate sufficient income to meet its operating expenses and
financial obligations, as well as providing the potential for future growth.
Financial Year End
Generally 30 June for Australian entities, but may differ.
The Financial Year End should be used to identify the date for submission of Annual
Compliance Statements.
Stand Alone Financial
Statements
Financial statements that relate to the applicant entity only, in that they do not form
part of another entity as a subsidiary or parent entity.
Annual Turnover
Income/revenue generated by the business that is shown in the financial statements
as Sales/Income/Revenue.
Net Profit Before Tax
Revenue minus Expenses, excluding Tax.
Total Income
The total income of an entity from all sources for the financial year.
Total Sales and Service
Income
Income derived directly from core business training activities.
Current Assets
The sum of cash and cash equivalents, accounts receivable, and other assets that
could be converted to cash in less than one year.
Current Liabilities
An entity's debts or obligations that are due within one year.
Non-Current Liabilities
An entity’s long-term debts or obligations that are not due within one year.
Total Assets
The value of all tangible and intangible assets owned by an entity.
Total Liabilities
The sum of all short and long-term obligations that an entity is liable to repay.
Total Equity
The sum of the owner’s investment in the entity which is equivalent to net assets of the
business.
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Section 1 Mandatory questions
Name of Legal Entity
Australian Company Number
Australian Business Number
Question 1
Accounting system
Each applicant is required to have a commercially recognised accounting software
package or outsourced accounting arrangement in place, which can:

regularly reconcile management accounts

prepare management reports on a monthly basis, and

prepare financial statements on an annual basis.
Does your organisation meet this requirement?
Yes
No
Question 2
Business plan
Each applicant is required to have a current business plan, which sets out its:

business objectives

analysis of markets

basic strengths, weaknesses, opportunities and threats (SWOT) analysis, and

financial projections for at least the next 12 and 24 months.
Does your organisation meet this requirement?
Yes
No
Question 3
Budgetary process
Each applicant is required to have a comprehensive financial budgetary process in place
that forecasts profits for at least the next 12 months.
Does your organisation meet this requirement?
Yes
No
If your organisation cannot meet all of these three requirements, do not continue with this assessment.
ASQA will not accept any organisation that poses an unacceptable financial viability risk for registration.
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Section 2 Questionnaire
Question 4
Date of applicant start-up
Question 5
Financial year-end
Question 6
Does the applicant prepare
standalone financial
statements?
Yes
No
If No, what is the name of the entity from which the applicant’s financial ratios (per
Section 4 of this application) have been calculated?
What is the applicant’s relationship to this entity?
Is there a formal cross-guarantee between the applicant and this entity?
Yes
No
Question 5
Forecast annual turnover
< $500,000
$500,001 to $2,000,000
> $2,000,000
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Section 3 Section 3—Organisation type
Organisation category
Select one category that best identifies your organisation:
a)
Fully owned and operated by an Australian Government, or state, territory or local government
department or agency
b)
University, school or institute established under Australian Government, state or territory
government legislation
c)
An organisation that, within the last six (6) months, has been formally assessed by ASQA or another
Australian Government department or agency as being ‘financially viable’
d)
None of the above.
If you have selected category ‘c’ from the above list, please provide the following information:
Assessing organisation name:
Date of assessment:

If you have selected category ‘c’, attach documentary evidence of this assessment and submit with this pack.
Ratios table 1
Profitability And Efficiency Ratios
Forecast Year Ended
Net Profit / (Loss) Ratio
Forecast Year Ended
%
%
%
%
%
%
Calculated as:

Net Profit Before Tax divided by Total
Income
Sales and Service Income to Total Income
Calculated as:

Total Sales and Service Income divided by
Total Income

Sales and Service Income is income
derived directly from core business training
activities.
Net Profit to Net Tangible Assets
Calculated as:

Net Profit Before Tax divided by [Total
Assets minus Intangible Assets minus Total
Liabilities]
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Ratios table 2
Liquidity Ratios
Forecast Year Ended
Current Ratio
Forecast Year Ended
:1
:1
Calculated as:

Current Assets divided by Current Liabilities
Working Capital
$
$
Calculated as:

Current Assets minus Current Liabilities
Cash to Current Assets
%
%
Calculated as:

Cash divided by Current Assets
Ratios table 3
Financial Structure Ratios
Forecast Year Ended
Current Assets to Total Assets
Forecast Year Ended
%
%
%
%
%
%
Calculated as:

Current Assets divided by Total Assets
Current Liabilities to Total Liabilities
Calculated as:

Current Liabilities divided by Total Liabilities
Debt to Equity Ratio
Calculated as:

Non-Current Liabilities divided by Total
Equity
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Section 4 Certificates
FFV0001 Chief Executive Officer/Principal Executive Officer Certificate
I, the person named below, certify that I am the Chief Executive Officer/Principal Executive Officer of the applicant and
attest and/or agree that:
1.
I acknowledge ASQA’s authority to seek verification of my organisation’s financial viability to assist ASQA in
making a risk assessment of my organisation’s suitability for initial registration under the National Vocational
Education and Training Regulator Act 2011 (NVR Act) and/or the Education Services for Overseas Students
Act 2000 (ESOS Act).
2.
I have read, understand and have familiarised myself with the requirements of the NVR Act and all other
requirements relevant to the organisation’s application for initial registration under the NVR Act including the
Financial Viability Risk Assessment Requirements made pursuant to section 158(1) of the NVR Act.
3.
I have and can produce to ASQA, at ASQA’s request, all information necessary to enable ASQA to undertake
an assessment of my organisation’s financial viability under the NVR Act and/or the ESOS Act including:
a) A current business plan, which clearly demonstrates my organisation’s purpose for initial registration is or
will be to provide education and/or training, and details the objectives of the business, analysis of the
business markets, basic strengths, weaknesses, opportunities and threats and financial projections for the
next 12 and 24 months.
b) Detail in respect to my organisation’s businesses record management system demonstrating that the
business has the capacity to complete and store student records in accordance with the relevant standard
and gather and report AVETMISS-compliant data.
c) That my organisation has an accounting system or outsourced accounting arrangements in place which
can regularly reconcile management accounts and prepare management reports on a monthly basis and
a financial budgetary process that is able to forecast profits for the next 12 months.
4.
I have provided a copy of my organisation’s business plan and all relevant financial information to the
Nominated Accountant named on the FFV-0003—Nominated Accountant’s Certificate for New Business
Entities.
5.
I fully understand that I must, if requested by ASQA, produce or procure the production of original versions of
all documents referred to in Part 3 above and otherwise demonstrate compliance with the requirements as
detailed in Part 3 above and that failure to produce those documents will be considered a breach of my
organisation’s legislative obligations and may be subject to penalty.
6.
ASQA may at any time require my organisation to provide any other relevant document or material, or may
conduct any third party credit assessment of my organisation or its owners or directors, to confirm my
organisation’s continued financial viability.
7.
I fully understand if it is discovered that any of the information provided in this document is found, at any time,
to be false or intentionally misleading, my organisation will be considered to be in breach of its legislative
obligations and may be subject to penalty.
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Applicant Name:
Australian Company Number:
Australian Business Number:
Legal Entity Name:
Registered Trading Name/s:
Name of CEO/PEO:
Position:
Signature:
Date:
Note
The Chief Executive Officer or the Principal Executive Officer of the applicant organisation must complete and sign
this FFV-0001—Chief Executive Officer/Principal Executive Officer Certificate before, but no more than 30 days
before, submitting the application for initial registration.
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FFV0003
Nominated Accountant’s Certificate for New Business Entities
Legal Entity Name of Applicant
Australian Company Number of Applicant
Australian Business Number of Applicant
I, the Nominated Accountant named below, certify that, for the applicant named above and in the FFV0001—Chief
Executive Officer/Principal Executive Officer Certificate:
1. I have read, understand and have familiarised myself with the requirements of the NVR Act and all other
requirements relevant to the application for registration under the NVR Act including the Financial Viability
Risk Assessment Requirements made pursuant to section 158(1) of the NVR Act and/or the Education
Services for Overseas Students Act 2000.
2.
I have examined the business plan, the financial information and all other documentation provided to me by
the Chief Executive Officer/Principal Executive Officer named on the FFV-0001—Chief Executive
Officer/Principal Executive Officer Certificate. I have been provided with sufficient valid financial records
consisting of financial forecasts for the next 12 and 24 months and other documentation to support the
statements made in that certificate and to certify that, on the basis of that information, the applicant should be
financially viable as stated below.
3.
Having made prudent enquiry, I am not aware of any circumstance or issue that would cause me to believe
that the Chief Executive Officer/Principal Executive Officer named in the FFV-0001—Chief Executive
Officer/Principal Executive Officer Certificate has withheld or misrepresented any material fact or
circumstance relevant to the named applicant.
4.
As a result of my review of the applicant’s business plan, the financial forecast for the next 12 and 24 months
and all other documentation provided to me by the Chief Executive Officer/Principal Executive Officer
(including my review of all other relevant financial reports and records), I certify that the applicant should be
financially viable based on the forecasted financial information provided that discloses sufficient income and
other financial resources to meet financial and statutory obligations for the purpose of the financial viability
requirements under the NVR Act and/or the ESOS Act.
5.
I declare/certify that the ratio information shown in the following table presents a fair representation of the
applicant’s forecasted financial position for the next two financial years.
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Nominated Accountant’s Certificate for New Business Entities
Financial Viability Ratios
Forecast Year Ended
Forecast Year Ended
Net Profit / (Loss) Ratio
%
%
Sales and Service Income to Total Income
%
%
Net Profit to Net Tangible Assets
%
%
Current Ratio
:1
:1
Working Capital
$
$
Cash to Current Assets
%
%
Current Assets to Total Assets
%
%
Current Liabilities to Total Liabilities
%
%
Debt to Equity Ratio
%
%
Nominated Accountant’s details:
Name
Company Name
Telephone Number
Mobile Number
Email
Professional Body Name
Professional Body Membership Number
Signature
Date
Note
The FFV-0003—Nominated Accountant’s Certificate for New Business Entities is to be completed and signed by the
Nominated Accountant on a date prior to, but no more than 30 days prior to, the application for registration being
submitted.
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