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TEQSA ANNUAL REPORT 2015–2016
ISSN 2200-9671
With the exception of the Commonwealth Coat of Arms, Contacts
TEQSA’s logo, any material protected by a trade mark More information about the Tertiary Education Quality
and where otherwise noted, all material presented in this and Standards Agency, including electronic versions of this
document is provided under a Creative Commons Attribution annual report, is available at <http://www.teqsa.gov.au/news-
3.0 Australia licence <http://creativecommons.Org/licences/ publications/annual-reports/2016>.
by/3.0/au/>.
Comments and enquiries about this report may be
The details of the relevant licence conditions are available directed to:
on the Creative Commons website (accessible using the
Manager, Executive Office
links provided) as is the full legal code for the CC BY 3.0 AU
Tertiary Education Quality and Standards Agency
licence <http://creativecommons.org/licences/by/3.0/au/
Level 14/530 Collins Street
legalcode>.
MELBOURNE VIC 3001
The document must be attributed as the TEQSA Annual
T: 1300 739 585
Report 2015–2016.
F: 1300 739 586
E: [email protected]
Acknowledgements
This report reflects the efforts of many people.
Special thanks go to TEQSA staff involved in
contributing and coordinating material.
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Senator the Hon Simon Birmingham
NMinister for Education and Train1ing
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Parliament House
CANBERRA ACT 2600
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A risk and standards
based approach to
Dear Minister,
As the accountable authority of the Tertiary Education Quality and Standards Agency (TEQSA), we
quality assurance
have pleasure in presenting to you the Agency's annual report for the year ended 30 June 2016.
TEQSA’s annual report has been prepared in accordance with section 46 of the Public Governance
Performance and Accountability iAnct 2 01A3 (thue PsGPtA rAcat). Sluibasec’tsion 46d(1) oifv thee PGrPsA Aect r equires
the accountable authority of the entity to give an annual report to the entity's responsible Minister for
presentation to Parliament.
higher education sector
In addition, we, as the accountable authority of TEQSA, present the 2015–16 annual performance
statements of TEQSA, as required under paragraph 39(1)(a) of the Public Governance, Performance
and Accountability Act 2013 (PGPA Act). In our opinion, these annual performance statements are
based on properly maintained records, accurately reflect the performance of the entity, and comply
with subsection 39(2) of the PGPA Act.
FEBRUARY 2015
Furthermore, we certify that TEQSA:
(a) has prepared fraud risk assessments and fraud control plans
(b) has in place appropriate fraud prevention, detection, investigation and reporting mechanisms that
meet the specific needs of the Agency
(c) has taken all reasonable measures to appropriately deal with fraud relating to the Agency.
This report describes the progress made over the course of 2015–16 to advance national action to
assure the quality of higher education in Australia. This work continues through the staff of TEQSA
and a range of stakeholders in the higher education sector.
Yours sincerely,
Professor Nicholas Saunders, AO Professor Cliff Walsh Ms Linley Martin
Chief Commissioner Commissioner Commissioner
I
TABLE OF CONTENTS
ABOUT THIS REPORT III SECTION 4: MANAGEMENT AND
ACCOUNTABILITY 40
SECTION 1: REVIEW BY TEQSA
COMMISSIONERS IV Corporate governance 41
Review by TEQSA Commissioners 1 Human resources 44
First impressions from the Chief Financial management 45
Executive Officer 3
SECTION 5: FINANCIAL REPORT 47
SECTION 2: AGENCY OVERVIEW 4
Independent Auditor's report 48
About TEQSA 5
Statement by the accountable authority
Legislative framework 5 and chief financial officer 51
Outcome and program structure 8 Financial statement 52
Purposes 9 SECTION 6: APPENDIXES 96
Organisational structure 9 Appendix A: Summary of resources 97
SECTION 3: PERFORMANCE REVIEW 13 Appendix B: Staffing profile 99
Performance against the purposes of the Appendix C: Freedom of information 100
Corporate Plan 14
Appendix D: Ecologically sustainable
Purpose 1: Effective oversight of the development and environmental
quality and reputation of Australian performance 100
higher education 15
Appendix E: Advertising and market
Purpose 2: Efficient, effective, responsive, research 101
risk-based quality assurance and
Appendix F: Workplace health and
regulatory activities 22
safety 101
Purpose 3: Constructive and collaborative
Appendix G: Complaints handling 102
relationships with governments, higher
education providers and other Appendix H: Disability reporting 102
stakeholders 29
SECTION 7: INDICES AND
Purpose 4: Effective internal quality REFERENCES 103
assurance by providers 35
Acronyms and abbreviations 104
Performance against the Portfolio
Glossary of terms 105
Budget Statements 37
Compliance index 108
Alphabetical index 117
II TEQSA ANNUAL REPORT 2015 – 2016
ABOUT THIS REPORT
This report informs Senator the Hon Simon It provides information on TEQSA’s performance
Birmingham, Minister for Education and Training, in relation to its stated outcome:
the Parliament of Australia, the Australian higher
[To] contribute to a high quality higher education
education community and the general public
sector through streamlined and nationally
about the performance of the Tertiary Education
consistent higher education regulatory
Quality and Standards Agency (TEQSA or the
arrangements; registration of higher education
Agency) during the financial year ending
providers; accreditation of higher education
30 June 2016.
courses; and investigation, quality assurance
Prepared according to parliamentary reporting and dissemination of higher education standards
requirements, the report describes TEQSA’s and performance.
achievements against the purposes and criteria
set out in TEQSA’s Corporate Plan 2015–19
and the indicators in TEQSA’s 2015–16 Portfolio
Budget Statements.
Section 1: Section 5:
Review by the Chief Commissioner and Chief Financial report — presents audited financial
Executive Officer — reflects on the past statements for the year ending 30 June 2016.
year, highlighting significant issues faced by
Section 6:
TEQSA and initiatives undertaken, as well as
current and future challenges. Appendices — includes information relating
to TEQSA’s staffing and its performance
Section 2:
in relation to Australian Government
Agency overview — provides information environmental, disability, freedom of
about TEQSA and its governance, roles and information and financial management
functions and organisational structure, as outcomes.
well as its approach to risk and standards-
Section 7:
based regulation.
Indices and references — assists readers
Section 3:
to locate and understand information in the
Performance review — reports on how annual report.
TEQSA performed during the reporting period
Glossary of acronyms and
against the purposes set out in the TEQSA
abbreviations page 104
Corporate Plan 2015–19 and its stated
Glossary of terms page 105
outcome and program deliverables contained
Compliance index page 108
in the 2015–16 Portfolio Budget Statements.
Alphabetical index page 117
Section 4:
Management and accountability — provides
information on corporate governance,
external and internal accountability,
human resource management, financial
management, purchasing, consultants and
contract management, legal services and
other activities relevant to the administration
of the Agency.
III
SECTION 1:
REVIEW BY
TEQSA
COMMISSIONERS
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REVIEW BY
TEQSA
COMMISSIONERS
THE COMMISSIONERS AS THE
ACCOUNTABLE AUTHORITY ARE
VERY PLEASED TO BE PRESENTING
TEQSA’S FIFTH ANNUAL REPORT
SECTION 1:
REVIEW BY The Commissioners, as the Accountable In addition to an increase in the number of
Authority, are very pleased to be presenting applications from registered HE providers,
TEQSA’s fifth Annual Report, the first under the 2015-16 saw growth in the number of
TEQSA
new reporting framework requiring an analysis applications from entities seeking to become
of performance against the TEQSA Corporate higher education providers. TEQSA received
Plan. It has been another year of change for 29 applications in 2015-16 compared with only
COMMISSIONERS
TEQSA with the commencement of our new 10 applications in 2014-15. With nearly 50
CEO, Mr Anthony McClaran, the start of the more entities expressing an intention to submit
delegation of regulatory decision-making to an application, the assessment of the ability of
TEQSA senior staff and increased engagement new entrants to meet the quality standards will
with the sector, primarily in preparation for continue to require significant resourcing.
the transition to the new Higher Education
In August 2015, TEQSA met with providers to
Standards Framework on 1 January 2017.
discuss risks across the sector, the introduction
Our volumes of activity were at record levels of the Regulator Performance Framework and
during 2015-16. There was a 33 per cent key matters such as attrition rates in the sector.
increase in the number of applications for In October, Anthony McClaran joined TEQSA as
assessment received and, despite the challenge CEO. Anthony has brought his deep experience
of reduced resources, a 4 per cent increase in of quality assurance in the UK sector, great
the number of assessments completed. The energy and a new perspective to the operation
increase in completions was achieved due to the of TEQSA, and his engagement with the
delegation of regulatory decision making and the sector has been well received. In April and
expansion of the Core+ model of assessment to May 2016, TEQSA held a series of roundtable
course accreditations, with assessment against discussions around the country, attended by
a core set of Higher Education Standards for all, 291 participants from the sector and primarily
and ‘plus’ elements added according to relative focussed on the transition to the 2015 Higher
risk. These reforms were made possible Education Standards (Threshold Standards)
by amendments to the TEQSA Act in Framework. For the first time, TEQSA experts
2014-15 and the successful implementation were also invited and over 50 experts met with
of the Core+ model of assessment for TEQSA representatives to hear how TEQSA
renewal of registration applications. would transition to the new Framework, and to
discuss their experience as TEQSA experts.
In the coming year TEQSA will draw even more
deeply on the great knowledge and expertise
our experts hold.
SECTION 01: REVIEW BY TEQSA COMMISSIONERS 1
THROUGHOUT 2015-16, TEQSA
CONTINUED TO STRENGTHEN ITS
LINKS WITH QUALITY ASSURANCE
AGENCIES INTERNATIONALLY,
INCLUDING VISITS TO
COUNTERPARTS IN CHINA,
JAPAN AND THE UNITED STATES
TEQSA’s engagement with the Australian Skills international borders to the benefit of students
Quality Authority, the Higher Education Standards and providers alike.
Panel, the Department of Education and Training,
LOOKING FORWARD
and relevant Commonwealth regulators has
resulted in better information sharing and the
May 2016 brought good news in the form of
monitoring of risks to the quality of education.
the 2016-17 Budget, where TEQSA’s approved
We remain committed to providing information annual appropriation was maintained at
and analysis about the Australian higher $11.4 million in place of the expected reduction
education sector. In April 2016, TEQSA to $9 million. The 2016-17 Budget also
published the third Statistics Report on TEQSA maintained TEQSA’s capital budget of
Registered Higher Education Providers following $0.864 million.
analysis of the 2014-15 sector data and the
The maintenance of funding will help TEQSA
publication of the first Key Financial Metrics
manage the increase in the regulatory workload
on Australia’s Higher Education Sector. The
and develop capacity to investigate and
transition of the Provider Information Request
respond to emerging risks to quality. However,
(PIR) from TEQSA to the Commonwealth Higher
a continuing reduction in the Agency’s APS
Education Information Management System also
Average Staffing Level, although partially offset
commenced during 2015-16. The data collected
by budget measures and contracted staff, will
from the 2016 request will be the basis of the
increase pressure to manage within operating
next Statistics Report and the 2016 annual risk
appropriations while meeting the significantly
assessment of registered providers.
increased level of quality assurance activity
Throughout 2015-16, TEQSA continued to required by a diverse and expanding sector.
strengthen its links with quality assurance
TEQSA plans to meet these challenges by:
agencies internationally, including visits to
reshaping its organisational structure to
counterparts in China, Japan and the United
focus on monitoring emerging risks and the
States and negotiating a second round of
most efficient management of assessments;
Memoranda of Cooperation with agencies in
investing in the tools and systems that
Singapore, Hong Kong and the UK. These
support its core functions; and continuing on
links help TEQSA in its key tasks of protecting
the journey of refining our risk differentiated
and enhancing Australia’s international
regulatory approach.
competiveness in the higher education sector,
and help to promote common approaches to Professor Nicholas Saunders AO
regulation and quality assurance across Chief Commissioner
on behalf of the Accountable Authority
2 TEQSA ANNUAL REPORT 2015 – 2016
FIRST IMPRESSIONS FROM THE
CHIEF EXECUTIVE
OFFICER
I AM DELIGHTED TO BE CONTRIBUTING
THIS FOREWORD TO TEQSA’S
ANNUAL REPORT FOR 2015-16
I am delighted to be contributing this foreword As CEO I have been working closely with
to TEQSA’s Annual Report for 2015-16. I arrived the Commissioners to build on their work
at the Agency in October after leading the UK’s in TEQSA’s relationships with all those who
Quality Assurance Agency for Higher Education share the commitment to protect and enhance
(QAA) since 2009. I found a warm welcome and the high reputation Australia’s HE sector
would particularly like to thank Ben Johnson, rightly enjoys, at home and internationally:
who served as interim CEO and offered much the providers of course, the peak bodies,
advice and assistance on my arrival. My initial government, professional organisations and
impressions of a resilient organisation, with the students. Australia’s sector is outward-
a strong sense of its purpose, have been looking and international, and so is TEQSA,
confirmed over subsequent months, as TEQSA as we continue to expand our network of
has responded positively to record levels of agreements with overseas regulatory and quality
regulatory activity by further development of assurance agencies.
its risk-based, proportionate approach to the
Ahead lie challenges: implementing the new
quality assurance of Australian higher education.
Higher Education Standards Framework,
robustly maintaining the ‘high front gate’ for
sector entry, and working effectively with partner
AUSTRALIA’S SECTOR regulators in key areas like dual-sector providers
and teacher education. In meeting them, and
IS OUTWARD-LOOKING
the others that will arise, I know I’ve joined, and
AND INTERNATIONAL, lead, a strong team.
AND SO IS TEQSA, AS WE
CONTINUE TO EXPAND OUR Anthony McClaran
Chief Executive Officer
NETWORK OF AGREEMENTS
WITH OVERSEAS
REGULATORY AND QUALITY
ASSURANCE AGENCIES
SECTION 01: REVIEW BY TEQSA COMMISSIONERS 3
SECTION 2:
AGENCY
OVERVIEW
ABOUT TEQSA
LEGISLATIVE FRAMEWORK
OUTCOME AND PROGRAM
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