Leadership and Accountability: Standards 4.1, 4.2

Standard

The RTO operates with integrity and is accountable for the delivery of quality services.

Performance Indicator

The RTO demonstrates:

1. the governing persons are suitable to oversee the operation of the RTO, including by having regard to the Fit and Proper Person Requirements
2. the governing persons act diligently and make informed decisions to support compliance with the Standards
3. the governing persons lead a culture of integrity, fairness and transparency in the delivery of services.

Intent of Standard 4.1

Good governance requires governing persons to lead with integrity, act diligently and set the benchmark for the RTO – particularly with respect to a culture of integrity. Governing persons are expected to be committed to quality VET and continuously monitor their organisation’s performance against the Standards. They are expected to lead the organisation and make adjustments to systems and practices so they are continuously improving as a RTO.

In particular, the RTO is expected to have systems and processes for ensuring:

Governing persons are suitable to oversee the RTO and are fit and proper

• In 2023, the Government strengthened the Fit and Proper Person Requirements, including to eliminate the minority of non-genuine operators that profit from VET students and fail to provide the standards of education and training that VET students deserve.
• RTOs are expected to regularly reassess the suitability of governing persons, including to ensure that they meet the Fit and Proper Person Requirements.

Governing persons are provided with the necessary information and evidence to help them make informed decisions about the RTO (and students)

• This information should include key data regarding VET students, enrolment, progression and completion rates, feedback and complaints from students, staff and others, as well as the outcomes of any monitoring and evaluation activities.
• RTOs should have systems for enabling governing persons to review this information on a regular basis to identify the improvements the RTO may need to make to comply with the Standards and continuously improve.

The RTO adopts a positive culture – focused on integrity, fairness and transparency

• There are many different ways that governing persons can drive the right culture within an organisation and hold staff and others accountable for delivering to the high standards they set. This includes documenting the RTO’s values and expectations regarding the conduct of all staff, VET students and others, reinforcing the RTO’s values and culture in staff training and listening to staff, students and others about their experience of the RTO’s culture.

The way governing persons achieve this and demonstrate their commitment to building a positive culture can vary. It is expected that governing persons will view their RTO’s operations through a lens of integrity, fairness and transparency and put processes in place that epitomise these concepts for students, staff and third parties. For example, ensuring:

• integrity in the way in which third parties are engaged, claims are made in marketing materials and fees charged
• fairness in enrolment processes, complaints and appeals and how students are treated
• integrity and transparency around decision-making, particularly in relation to assessment. 

Self-Assurance Considerations

In self-assuring against this Standard, consider (among other things):

• how do you ensure governing persons are fit and proper and suitable for the role
• the information that governing persons need in order for them to make informed decisions about the RTO’s compliance with the Standards (including how they receive and review such information)
• how the governing persons establish, communicate and lead the culture of the organisation (with a focus on integrity, fairness and transparency)

Standard

Roles and responsibilities are clearly defined and understood.

Performance Indicator

The RTO demonstrates:

1. roles and responsibilities are documented and well-understood within the RTO, with clear lines of accountability for decision-making
2. staff are supported to understand the Standards as relevant to their role, and are informed about any changes to legislative and regulatory requirements that affect the services delivered
3. a system for ensuring third parties are aware of their obligations and meet the requirements of the Standards.

Intent of Standard 4.2

Well-managed organisations have effective systems for defining roles and responsibilities, communicating these within the organisation and assigning accountabilities. For RTOs that engage third parties in the delivery of services, the system must equally describe the roles and responsibilities of the third parties, including their accountabilities.

RTOs are expected to:

• have well thought-out role descriptions and responsibilities for all staff and governing persons
• ensure staff (and third parties) are aware of their responsibilities and accountabilities, particularly in relation to compliance with the Standards
  • When staff are not aware of the responsibilities of different people within the organisation, this can lead to confusion and delay in risks being identified and managed. RTOs should consider the ways in which staff are made aware of their accountabilities, including escalation pathways, particularly where there is a risk to students or a risk of non-compliance with the Standards.
• have systems for regularly monitoring whether staff are appropriately performing their roles, meeting their responsibilities and exercising their accountabilities.

While the RTO’s governing persons are ultimately responsible for compliance with the Standards, everyone within the organisation contributes to the outcomes the Standards set out. All staff, contractors, experts and third parties therefore need to be familiar with the Standards and how these are relevant to their role and made aware of any changes that will impact how they work. RTOs should have a system for identifying changes to regulatory requirements and communicating them to relevant staff and others.

Self-Assurance Considerations

In self-assuring against this Standard, consider (among other things):

• the roles and responsibilities of key staff staff (eg trainers /assessors/support / leadership team) and others within the RTO, including how these are documented, communicated and understood within the organisation
• the lines of accountability, particularly as they relate to risks to students and compliance with the Standards
• how staff and governing persons are supported to understand the Standards, including any relevant changes to regulatory requirements
• how monitoring of third party arrangements ensures that all parties are aware of and meet their obligations under the Standards how action is taken with third parties where they are failing to meet their obligations

In considering the reflective questions, consider the extent to which your current practices are working and what if any, changes you could make to improve these. It may be helpful to think about examples.

1. How do you ensure governing persons are suitable, fit and proper?
2. What is in place to ensure governing persons are acting diligently and are well informed?
3. How can you demonstrate your governing persons are familiar with the RTO Standards and understand their current and on-going responsibility to maintain compliance?
4. How does the organisation identify, communicate and monitor its values and culture?
5. What is in place to identify, communicate and monitor roles, responsibilities and accountabilities within the RTO?
6. How do you ensure staff are familiar with the Standards (and any changes to regulatory requirements) and their responsibilities in relation to compliance?
7. What is in place to oversee and ensure third party compliance with the Standards? 

Website:

• Fit and Proper Person Requirements
• Fit and Proper Person Policy
• Fit and Proper Person Declaration (Form)

Webinar

• The Fit and Proper Person Requirements webinar covers the steps involved in TAC assessing Fit and Proper Person Declarations and who needs to submit a declaration.  Although this webinar is aligned to the Standards for RTOs 2015, the information contained within the webinar is relevant to the Revised Standards for RTOs. 

Standard

• Standard 4.1 relates to all other Standards

Compliance Requirement

• 16 & 17 - third party
• Schedule 1 - Fit And Proper Person Requirements