Registration
Report on registration of Marasi Education Pty Ltd
On 11 May 2022, TEQSA:
- granted, under section 21 of the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act), the application by Marasi Education Pty Ltd for registration in the category of Institute of Higher Education, for a period of five years until 11 May 2027.
- accredited, under section 49 of the TEQSA Act, the application by Marasi Education for accreditation of the Bachelor of Business (Accounting) course for a period of five years until 11 May 2027.
- imposed, under section 32 of the TEQSA Act, the following conditions on the registration of Marasi Education Pty Ltd as an Institute of Higher Education:
Condition 1: Corporate Monitoring and Accountability
For the first 4 years after registration, VSC must report to TEQSA if any of the following events occur, based on board accepted management accounts as at 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 VSC's finances 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 VSC'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, based on the board approved management accounts.
Content of reports
In respect of any event, the report must be based on VSC's board approved 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 Statement of Reasons report provided with the Notice of Decision.
Condition 2: Corporate Monitoring and Accountability
For the first 4 years after commencing the delivery of accredited course(s), within 30 days of 30 June and 31 December, VSC must provide TEQSA with the following board approved information:
- The number of commencing and continuing students for the 6-month period (domestic and international), and
- The equivalent full time student load (EFTSL, domestic and international).
For both the number of students enrolled and the EFTSL, VSC must provide the actual figures for the 6-month period compared to those projected in the sensitised forecast, as well as the budget for the 6-month period.
Content of reports
The reporting to include a business plan and all actions with timeframes planned for correcting any shortfall in student numbers compared to the sensitised forecast.
Definition of the sensitised forecast
For this condition, the sensitised forecast is the forecast contained in the Statement of Reasons report provided with the Notice of Decision.
Background
Marasi Education (VSC) applied to TEQSA for registration in the category of Institute of Higher Education and for the accreditation of one course: Bachelor of Business (Accounting).
TEQSA considered VSC's applications and provided a draft assessment report with details of the assessment of VSC's applications by the responsible assessment team. TEQSA's Commission considered VSC's response to the draft report and made the decision to approve VSC's application for registration on 11 May 2022 on the basis that it was satisfied that VSC met the Higher Education Standards Framework (Threshold Standards) 2021 (HES Framework). Two conditions were imposed on the registration of VSC.
Main reasons for the decision
TEQSA made these decisions on the basis that it was satisfied that VSC meets the Provider Registration Standards and Provider Course Accreditation Standards of the HES Framework. However, TEQSA considered that there remained a risk related to VSC's capacity to meet the Threshold Standards in the future.
On this basis, TEQSA agreed that it was appropriate to register VSC for a period of five years until 11 May 2027, and to accredit VSC's Bachelor of Business (Accounting) 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 two conditions on VSC'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.
