Financial Viability Risk Assessment (FVRA) Tool
This tool requires you to provide information on financial viability, financial history and projections for your organisation to ASQA when you apply to become an RTO, apply to change the scope or at a monitoring review.
ASQA will use the information provided in this tool to determine the financial health of your RTO with specific attention to liquidity and break-even, whether your RTO can manage the cash flow to pay outgoings, tax debt and other fixed financial commitments.
It also talks a lot about non-financial metrics such as projected student and staff numbers. The tool requires the supporting evidence of business strategy, bank statements, payable and receivable reports and details of the intended courses.
If you understand these factors in advance, you can proactively plan for submission. ASQA provides higher weight to this document, and you need to work accurately on numbers and projections. It is also crucial that this tool supports your Business Plan, and the two documents talk to each other.
The tool needs to be prepared and signed off by a qualified accountant like myself.