Financially Sound Provider

What this mark certifies

This mark provides an independent financial viability assessment, giving students, clients, funders and partners a checked assurance that an organisation is a going concern able to meet its commitments. In sectors where a provider's collapse leaves customers stranded, a verified viability position is a meaningful signal of confidence.

The mark is expressly a point in time assessment against defined viability indicators. It is not financial product advice, it is not an audit opinion, and it is not a guarantee of future solvency. It confirms the organisation's assessed financial position as at the assessment date, and the holder must never present it as a promise that the organisation cannot fail.

Certification requirements

• The organisation demonstrates financial viability against defined indicators, comprising positive net assets, or a satisfactory explanation supported by backing where net assets are negative, adequate liquidity to meet obligations as they fall due, a current ratio meeting the defined threshold, the absence of unmanaged solvency risk indicators, and current tax and statutory lodgements.

• The business holds a current Australian Business Number.

Evidence required

• Financial statements for the two most recent financial years.

• A current interim statement of financial position.

• Cash flow information.

• Confirmation of tax and statutory lodgement status.

• A signed declaration by the responsible officer.

How it is assessed

The financial information is assessed against the viability indicators by an approved certifier who holds a CPA or Chartered Accountant qualification, and the assessment records the assessed position as at the assessment date.

Re-verification and monitoring

Certification is valid for twelve months and is subject to annual re-verification. Because financial position can change, this mark carries a prompt notification obligation set out in the contractual terms below.

Grounds for refusal, suspension or revocation

Certification is refused, suspended or revoked where a material adverse change occurs in the organisation's financial position, where the organisation becomes insolvent or enters external administration, or where the financial information provided is found to be untrue or incomplete.

Contractual obligations on the badge holder

In addition to the core terms of the CAQA Certified Licence Agreement in Section 4, a holder of this mark agrees to the following obligations specific to this badge.

1. 1

   The holder must notify CAQA in writing within five business days of any material adverse change in its financial position, and immediately upon becoming insolvent or entering any form of external administration.

2. 2

   The holder must cease all use of the mark immediately, without waiting for a determination by CAQA, upon becoming insolvent or entering external administration.

3. 3

   The holder must not represent that the mark is a guarantee of solvency, an audit opinion, or financial product advice.

4. 4

   The holder must provide updated financial information within ten business days of a request by CAQA.

5. 5

   The holder warrants that the financial information provided is true, accurate and complete, and acknowledges that certification is granted in reliance on that information.