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Texila College Australia Pty Ltd: Registration and Accreditation 30 October 2020

Registration

Report on registration of Texila College Australia Pty Ltd

TEQSA has agreed to orders made by the Administrative Appeals Tribunal (AAT) under which Texila College Australia Pty Ltd (TCA) is registered in the provider category of Higher Education Provider pursuant to section 21 of the Tertiary Education Quality and Standards Agency Act 2011 (the TEQSA Act) for a period until 27 October 2025.

The AAT orders also provide for the accreditation of the Bachelor of Business course of study to be offered by TCA, pursuant to section 49 of the TEQSA Act, for a period until 27 October 2025.

Three conditions have been imposed on TCA's registration and accreditation. A copy of the conditions is available in Attachment 1.

Background

TCA applied to TEQSA for registration in the category of Higher Education Provider under Part 3 of the TEQSA Act.

An assessment team considered TCA's application and provided a draft assessment report with details of the assessment of the application to TEQSA's Commission. TEQSA's Commission considered TCA's response to the draft report and made a decision to reject TCA's application for registration on 19 February 2020, on the basis that it was not satisfied that TCA met the Threshold Standards.

TCA applied for review of TEQSA's decision in the AAT. In the course of the proceedings, TCA made submissions and provided further information and evidence about the matters raised in TEQSA's decisions.

It is well established that absent a specific legislative provision to the contrary, the AAT is generally required to make a decision on review based on the evidence available at the time of the AAT's decision on review, and that the AAT is not confined to the evidence available at the time of the primary decision. Accordingly, TEQSA accepted that the AAT was required to take account of the further material submitted to TEQSA after TEQSA had rejected TCA's applications.

Main reasons for the decision

After reviewing the further material submitted by TCA, TEQSA was satisfied that TCA meets the Threshold Standards. However, TEQSA considered that there remained a number of risks related to TCA's capacity to meet the Threshold Standards in the future.

On this basis, TEQSA agreed that it was appropriate to substitute TEQSA's initial rejection of the applications with decisions to register TCA for a period until 27 October 2025, and to accredit TCA's Bachelor of Business course for the same period. TEQSA also agreed it was appropriate to impose three conditions on TCA's registration and course accreditation.

The conditions are designed to address the following issues:

  1. Academic staff with responsibilities for academic oversight are those with teaching and supervisory roles are adequately qualified and have knowledge of contemporary developments in the discipline or field, which is informed by continuing scholarship or research or advances in practice (Standard 3.2.3).
  2. The financial position, financial performance and cash flows of TCA are monitored regularly (Standard 6.2.1).
  3. Risks to higher education operations have been identified and material risks are being managed and mitigated effectively (Standard 6.2.1).

TEQSA is satisfied that the conditions will provide an appropriate framework for TEQSA to oversee TCA's approach to dealing with these issues.

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.

Attachment 1

Pursuant to section 32(1) of the TEQSA Act, the following conditions are imposed on the registration of Texila College Australia Pty Ltd as a higher education provider:

Condition 1 - Academic Staffing

At least six weeks prior to commencing delivery of its Bachelor of Business course, Texila College Australia Pty Ltd ("TCA") must provide TEQSA with the names and CVs of proposed appointees to the position of course coordinator to provide academic leadership for each of the three specialisations of the Bachelor of Business (international business, management and marketing). TCA must not commence delivery of the course until TEQSA notifies TCA that it is satisfied that the proposed appointments are appropriate, and TCA informs TEQSA that the appointments have been made.

Condition 2 - Corporate monitoring and accountability

By 30 June and 31 December each year for the period of registration, TCA must provide TEQSA with minutes and papers of its Board of Directors for the previous six months which show that:

  1. TCA's Board of Directors maintains oversight of TCA's financial position and financial performance by reviewing a comparison of:
    1. actual financial position to the budgeted financial position for the previous quarter, and
    2. the budget for the following quarter. This material must include income statements, balance sheets, cash flow statements and the projected and actual number of staff and enrolled students; and
  2. TCA maintains a risk management framework together with periodic review and evidence of risk identification, monitoring and treatment for its higher education operations.

Condition 3 - Financial oversight

TCA must:

  1. assess its liquidity ratio at least quarterly;
  2. maintain a written record of each assessment in paragraph A, and the basis for the assessment;
  3. notify TEQSA in writing within 5 business days if its liquidity ratio assessed pursuant to paragraph A falls below "1", and inform TEQSA of its proposed steps to address its liquidity.

For the purposes of this condition, the liquidity ratio is calculated as follows: Current Assets divided by Current Liabilities.