Registration
Report on registration of Melbourne Institute of Higher Education Pty Ltd
On 2 February 2022, TEQSA:
- granted, under section 21 of the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act), the application by Melbourne Institute of Higher Education Pty Ltd for registration in the category of Institute of Higher Education, for a period of five years until 2 February 2027.
- accredited, under section 49 of the TEQSA Act, the application by Melbourne Institute of Higher Education for accreditation of the following course for a period of five years until 2 February 2027: Bachelor of Business (Marketing).On 21 February 2022, TEQSA:
- imposed, under section 32 of the TEQSA Act, the following condition on the registration of Melbourne Institute of Higher Education Pty Ltd as an Institute of Higher Education:
Condition 1: Corporate Monitoring and Accountability
For the first 3 years after registration, Melbourne Institute of Higher Education (MIHE) must report to TEQSA if any of the following events occur, based on board accepted management accounts for 30 June and 31 December:
- The Current Ratio, defined as Current Assets divided by Current Liabilities (excluding related party transactions), is less than 1.0
- The Net Operating Cash Flow is less than it was projected to be in the sensitised forecast of MIHE's finances (as defined below) by a margin of 10 per cent or greater
- EBITDA, defined as Earnings Before Interest Tax Depreciation and Amortisation, are less than what they were projected to be in the sensitised forecast of MIHE's finances by a margin of 10 per cent or greater.
The reporting, if any of these events occur, must be within 60 days of 30 June or 31 December respectively, after the board accepted management accounts for 30 June and 31 December.
Content of reports
In respect of any event, the report must be based on MIHE's board accepted management accounts (which must be provided to TEQSA) and otherwise include a business plan, revised financial projections and all actions and short timeframes planned for correcting negative elements.
Definition of the sensitised forecast
For this condition, the sensitised forecast is the forecast contained in the assessment report provided to MIHE as part of the proposed notice of decision on 6 December 2021. The midyear projections are to be based on MIHE's detailed modelling for the sensitised forecast.
Background
Melbourne Institute of Higher Education (MIHE) applied to TEQSA for registration in the category of Institute of Higher Education and for the accreditation of one course: Bachelor of Business (Marketing).
TEQSA considered MIHE's applications and provided a draft assessment report with details of the assessment of MIHE's applications by the responsible assessment team. TEQSA's Commission considered MIHE's response to the draft report and made the decision to approve MIHE's application for registration on 2 February 2022 on the basis that it was satisfied that MIHE met the Higher Education Standards Framework (Threshold Standards) 2021 (HES Framework). One condition was imposed on the registration of MIHE.
Main reasons for the decision
TEQSA made these decisions on the basis that it was satisfied that MIHE meets the Provider Registration Standards and Provider Course Accreditation Standards of the HES Framework. However, TEQSA considered that there remained a risk related to MIHE's capacity to meet the Threshold Standards in the future.
On this basis, TEQSA agreed that it was appropriate to register MIHE for a period of five years until 2 February 2027, and to accredit MIHE's Bachelor of Business (Marketing) course for the same period. The five-year period of registration and accreditation is consistent with the basic principles of regulation and reflects risks associated with an applicant for initial registration intending to offer a higher education course, but having no history in the provision of higher education.
TEQSA also agreed it was appropriate to impose one condition on MIHE's registration.
Application to withdraw conditions
In accordance with section 32 of the TEQSA Act, TEQSA may vary or revoke a condition imposed on the registration of a higher education provider, either on its own initiative or upon application by the provider for variation or revocation.
