Managing Third Party Arrangements Policy

1. Purpose

From time to time CIT may develop relationships with third parties. Such arrangements are designed to improve access to, and the affordability of, quality training and assessment. The foundation of each third party arrangement is a contract between CIT and the third party.

Third Party or sub-contracting arrangements for the delivery of nationally accredited training may be an option where internal resources are not available.

This policy:

sets out the principles for establishing and managing third party/subcontract arrangements between Canberra Institute of Technology (CIT) and:
- another party (Registered Training Organisation, business or senior secondary school) for the delivery and assessment of nationally accredited training
- education agents recruiting international students to study at CIT
provides detailed guidance to ensure that third party arrangements for the training and assessment of nationally accredited training are quality assured.

This policy is to be read in conjunction with Managing Third Party Arrangements (Training and Assessment) Procedure (PDF, 1014.1 KB).

2. Scope

This policy applies to:

all proposed arrangements where CIT engages a third party
all personnel of CIT and the third party provider engaged in the delivery, assessment and administration of subcontracting arrangements
all registered education agents engaged for the purposes of recruiting of international students.

3. Principles

Terminology may vary with the third party arrangement being referred to as an Auspice Agreement, Sub-Contract, Subcontractor Agreement or similar. What these contracts have in common is that another party delivers training and assessment on behalf of CIT. This policy covers these arrangements as third party arrangements.

CIT may make a third party arrangement with a non-RTO to deliver training and assessment of all or part of a nationally accredited training product where CIT has the nationally accredited training product on its scope of registration. The non-RTO may be either a natural or a corporate person (for example, a sole director/share holder company).

Any training and/or assessment under a third party arrangement is provided in the name of CIT, not the subcontractor.

Third party arrangements will only be entered into where a process of due diligence identifies:

they provide training and assessment services consistent with CIT’s quality, compliance and procurement requirements
they deliver an appropriate level of financial return to CIT
they are approved by the Executive as meeting a community services obligation.

Third party arrangements must meet the requirements of:

the Standards for Registered Training Organisations (RTOs) 2015
regulatory requirements of the Australian Skill Quality Authority (ASQA)
the current Memorandum of Understanding – Subsidised Training between Australian Capital Territory Government and CIT
NSW Smart and Skilled Contract
other CIT policies and procedures
other legislative, regulatory, funding or procurement conditions.

Each third party arrangement for the delivery of training and assessment must comply with all procurement, legislation and regulatory requirements and be approved in writing by the Canberra Institute of Technology (CIT) Chief Executive Officer (CEO).

3.1 Advertising, Marketing and Communications

CIT will refer on its website and corporate materials to the identity of the third party and its respective roles in the provision of training and assessment.

The subcontractor cannot advertise any nationally accredited training products subject to a third party arrangement with CIT, in its own name.

Communications with prospective and current students will confirm:

where a third party is recruiting prospective students on behalf of CIT
where training and assessment is being delivered on CIT’s behalf by a third party
students are enrolled as students of CIT, not the third party
complaints or appeals will be directed to CIT if they cannot be resolved with the third party. (Refer: Academic Appeals Policy and Student and Community Members Complaint Policy).

CIT will monitor the marketing and other student information of the third party to ensure the third party does not guarantee that:

a student will successfully complete a training product on its scope of registration
a training product can be completed in a manner which does not meet the requirements of the Standards for RTOs 2015
a student will obtain a particular employment outcome where this is outside the control of the RTO.

3.2 Issuing qualifications

Third parties deliver on behalf of CIT, they are not in any alliance or partnership with CIT.

Qualifications and/or statements of attainment are issued in the name of CIT, not the subcontractor.

All qualifications under third party arrangements will have an approved CIT Training and Assessment Strategy (TAS).

3.3 Academic quality

All training and assessment will meet the requirements of the relevant nationally accredited training product.

All trainers and assessors will meet the requirements of the Standards for RTOs 2015.

CIT accepts responsibility for the activity of all third parties and is solely accountable for the compliance of its third party providers.

All third party arrangements must be:

the subject of due diligence regarding the suitability of the third party and the likelihood of a sustainable arrangement
assessed for financial viability and achievement of CIT business goals
documented in a formal written agreement.

CIT will not enter third party arrangements that require access to VET Student Loan funding.

Where foundation skills units of competency are being delivered by a third party under a third party arrangement, the third party RTO must hold a Training Initiative Funding Agreement and be identified on each student record during the enrolment process. The third party RTO is responsible for the submission of the AVETMISS files; however payment for foundation skills units of competency will be paid to CIT. Trainers delivering foundation skills units of competency must meet the qualifications requirements of the FSK training package.

Any third party arrangements with another RTO that holds ACT Training Initiative Funding Agreement will include a clause that allows CIT to immediately terminate the arrangement if the subcontractor’s ACT Training Initiative Funding Agreement is suspended or terminated.

Third parties will not be permitted to further subcontract the delivery of the third party training and assessment.

CIT will cooperate with the ACT Government, Training Services NSW and ASQA in the provision of copies of any executed third party agreement, information, documentation and participation in audits regarding third party arrangements.

CIT will monitor and audit all subcontract arrangements for compliance with contract/agreement and act where non-compliances occur including to terminate agreements.

Where enrolment involves an accredited training product the following CIT policies and procedures specifically apply:

3.4 Responsibilities

3.4.1 Chief Executive Officer

The Chief Executive Officer is responsible for:

consulting with the CIT Board regarding approval of third party agreements
executing all third party agreements.

3.4.2 Executive Director, Education Futures and Students

The Executive Director, Education Future and Students is responsible for:

undertaking a risk assessment and conducting due diligence regarding the third party (in conjunction with the Industry and Innovation Lead)
liaising with Skills Canberra and Training Services NSW regarding proposed third party arrangements (in conjunction with the Industry and Innovation Lead)
preparing a business case and meeting the third party (in conjunction with the Industry and Innovation Lead)
preparing third party agreements (in conjunction with the College Director)
ensuring compliance with notifications to ASQA, Training Services NSW and Skills Canberra
contract management
performance and evaluation of the agreement/record keeping.

3.4.3 Industry and Innovation Lead

Industry and Innovation Lead is responsible for:

undertaking a risk assessment and conduct due diligence regarding the subcontractor (in conjunction with the Executive Education Future and Students)
preparing a business case and meeting the third party (in conjunction with the Executive Director, Education Future and Students)
liaising with Skills Canberra regarding proposed third party arrangements (in conjunction with the Executive Education Future and Students).

3.4.4 Senior Education Leader

The Senior Education Leader is responsible for ensuring a quality audit is undertaken of all third party arrangements in conjunction with the Executive Branch Manager Audit Risk and Corporate Governance.

3.4.5 College Director

The College Director is responsible for:

initiating new third party arrangements with internal stakeholders
confirming resourcing requirements
confirming status on Scope of Registration
initiating third party agreements in conjunction with the Industry and Innovation Lead and in collaboration with other College Directors where a third party arrangement applies to training and assessment across more than one College
ensuring third party educators’ currency and competency relevant to the requirements of the nationally accredited training to be delivered and/or assessed by the third party
preparing and executing a plan for development of marketing and course materials.

3.4.6 Head of Department

The Head of Department is responsible for developing the Training and Assessment Strategy (TAS). (Refer: TAS Development Policy, TAS Development Procedure and TAS Review and Approval Procedure).

4. Documentation

4.1 Related Legislation/Regulation

Standards for RTOs 2015
National Assessment Instruments – determined by Work Health and Safety regulations
National Vocational Education and Training Regulator Act 2011 (Cth)
Education Services for Overseas Students (ESOS) Act 2000
ACT Training Initiative Funding Agreement
ACT Standards and the Compliance Guides

4.2 Related Policy and Procedures

4.3 Related Documents

Memorandum of Understanding – Subsidised Training between Australian Capital Territory Government and CIT
CIT Agreement for Delivery of Training and Assessment Services template
Managing Third party Arrangements - Subcontractor Contract Checklist
Fact Sheet – Third party arrangements (ASQA, updated 1 November 2019)

5. Definitions

All terminology used in this policy is consistent with definitions in the CIT Definitions of Terms. The following definitions are provided in the context of this policy.

Brokering services	The recruitment of individuals to participate in training that is to be subsidised under the VET Funding Contract, by an individual or organisation in exchange for payment from CIT or the student, but excludes activities carried out by individuals who are employees of the Training Provider on the Training Provider’s payroll, whose role includes the identification and recruitment of potential students.
CIT Personnel	All officers, employees, agents and third parties the CIT and, in respect of each third party contractor of CIT the officers, employees, agents and contractors (including subcontractors) of the contractor, who are involved in any way in the delivery and support of CIT training services.
Courses of concern	Any VET course where ASQA has assessed that non-compliant training and/or assessment poses a particularly significant risk to the quality, integrity and reputation of the VET sector.
Eligible individual	An individual who is eligible for ACT Government subsidised training in accordance with the eligibility requirements set out in the Memorandum of Understanding – Subsidised Training between Australian Capital Territory Government and CIT.
Funded scope	The specific list of courses and qualifications with a status of “Approved” for which funding will be paid to CIT
RTO	A Registered Training Organisation registered by ASQA (or, in some cases, a state regulator) to deliver VET services.
Services	Training, assessment, related educational and support services and/or any activities related to the recruitment of prospective students. It does not include services such as counselling, mediation or information and communication technology support. Reference: RTO Standards 2015
Third Party	Any party that provides services on behalf of the RTO but does not include a contract of employment be-tween an RTO and its employee.

6. Policy Contact Officer

Executive Director, Education Futures and Students.

Contact CIT Student Services on (02) 6207 3188 or email infoline@cit.edu.au for further information.

7. Procedures

This policy is implemented through the associated procedures. Authority to make changes to the procedures is with the policy owner.

POLICY INFORMATION

Policy No: CIT2024/667
Approved: June 2024
Next Review: June 2027
Category: Training Policies
Policy Owner: Executive Director, Education Futures and Students

PROCEDURES/DOWNLOADS

Managing Third Party Arrangements (Training and Assessment) Procedure
(PDF File 1014.1 KB)