Performing Arts Education Pty Ltd: Revoke and Vary Conditions 23 December 2020
Variation and Imposition of registration conditions
Report on variation and imposition of conditions imposed on registration of Performing Arts Education Pty Ltd
On 23 December 2020, a delegate of TEQSA varied, under section 32 of the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act), Conditions 1 and 3 imposed on the registration of Performing Arts Education Pty Ltd (refer public report of 19 October 2018).
Condition 1: Financial sustainability
1.1 PAE must at all times throughout the period of registration maintain within PAE controlled bank accounts minimum unrestricted cash reserves of $100,000.
1.2 If the minimum unrestricted cash reserves referred to in [1.1] are not maintained, PAE must:
- notify TEQSA in writing within 2 business days, together with its proposed action to bring the unrestricted cash reserves back into compliance with [1.1];
- provide TEQSA with a revised financial forecast (including financial projections in the form of income statements, a balance sheet, a cash flow statement and student enrolment projections) within 1 month.'
"Unrestricted cash reserves" means the funds must not be used to secure any other liability or obligation of the provider and are to be maintained as a minimum financial reserve for the purpose of ensuring ongoing liquidity of the provider.
Condition 3: Governance
3.1 By 31 March, 30 June, 30 September and 31 December each year for the period of registration, PAE must provide minutes and all papers and reports considered by board members for Governance Board meetings for the preceding 3 months to TEQSA, which show:
- that PAE maintains oversight of its financial position and financial performance by reviewing a comparison of (i) actual financial position to the budgeted financial position for the previous quarter and (ii) the budget for the following quarter. This material must include income statements, balance sheets, cash flow statements, and the number of staff and students;
- that PAE monitors potential risks to its operations and has strategies to mitigate risks that may eventuate;
- that PAE has effective development, approval, implementation and review of all policies; and
- the nature of PAE's considerations in relation to any of its policies or procedures, including any recommendations and changes to those policies and procedures.
On 23 December 2020 a delegate of TEQSA imposed, under section 32 of the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act), one condition on the registration of Performing Arts Education Pty Ltd.
Condition 6: Financial and tuition safeguards
6.1. PAE will provide to TEQSA:
- By 15 January 2021, an academic calendar for academic years 2021, 2022 and 2023, noting for each term the commencement of delivery, the census date, and the final delivery and examination dates.
- Notification within fourteen calendar days should any date listed in the calendar from 6.1.a be altered.
- Within five working days of each census day for each academic term, a report containing the number of all student enrolments, reported in the following categories:
- continuing students
- commencing FEE-HELP students
- commencing pre-paid fee paying students
- cancelled, withdrawn, and completed enrolments since the previous report
6.2 Within five working days of the end of each month, PAE will provide to TEQSA a report detailing for each student for whom PAE has received pre-paid course fees in relation to its higher education courses, and who has not completed the course at the date of the report:
- The amount of pre-paid fees received from the student.
- The date on which the pre-paid fees were received from the student.
- Where a student has not commenced a higher education course at the date of the report, the expected date on which the student will commence and complete the course.
6.3 By 1 March 2021, and within 5 working days of the end of each month thereafter, a copy of monthly bank statements for each and every bank account controlled by PAE which shows all transactions and balances for the previous month.
Main reasons for the decisions
TEQSA made the decision on the variations on the basis that these variations clarified the requirements of the original conditions.
TEQSA made the decision on the imposition of Condition 6 on the basis of a compliance assessment which identified material risks against Standard 6.2.1 of the Higher Education Standards Framework (2015).