Quality Assessment:
Third Party
Arrangements
Terms of Reference
January 2013
QUALITY ASSESSMENT: THIRD PARTY
ARRANGEMENTS
Introduction
TEQSA’s role includes assuring the quality of Australia’s higher education sector. The objects of
the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act) include ‘protecting
and enhancing excellence, diversity and innovation in higher education in Australia.’ A key
means by which TEQSA will fulfil its quality assurance and quality enhancement responsibilities
will be through formal quality assessments. In undertaking quality assessments TEQSA will
draw on the extensive knowledge and expertise that exist within the higher education sector.
TEQSA’s quality assessment of higher education provider third party arrangements is one of the
first formal quality assessments to be undertaken by TEQSA. Provider Registration Standard
4.5 states:
Where the higher education provider has an arrangement in place with another entity to
manage or deliver some or all of a course of study on its behalf, the higher education provider
has effective mechanisms to manage and quality assure all aspects of the arrangement,
including admission and support of students and delivery of the course of study to ensure
student learning outcomes equivalent to those for the same or a cognate course of study when
delivered by the higher education provider.
Relevant sections of the TEQSA Act are sections 134, 60, 28, 63 and 26 as explained in
Appendix A.
Strategic alliances between higher education providers, both domestic and international, can
deliver significant benefits to providers by allowing them to source knowledge and expertise,
to develop innovative approaches to the delivery of education and to extend market reach.
Third party arrangements within the higher education sector often encompass a wide range of
academic activities, and special consideration must be given to whether a provider’s policies
and business practice also maintain appropriate academic standards. The diverse nature of
strategic collaboration within the higher education sector means that the assessment of
quality will necessarily entail careful consideration of a provider’s individual circumstances.
TEQSA’s aim in conducting this sector-wide assessment is to identify systemic issues relating to
providers’ third party practices, including, but not limited to, provider compliance with the
Threshold Standards. More broadly, TEQSA will provide advice to the sector on improving the
quality of higher education, while maintaining the benefits offered by third party arrangements.
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Principles
The quality assessment will be underpinned by the following principles:
► Quality assessment reports will include research findings and may contain broad, as
well as specific advice and recommendations for the sector
► TEQSA may undertake a follow-up assessment of the extent to which providers have
actioned particular recommendations
► All providers will be required (under section 28 of the TEQSA Act) to participate in the
assessment process and may be required to provide specific follow-up information
relevant to the focus of the assessment
► Quality assessments will not, in isolation, lead to TEQSA making a regulatory decision
about a provider. Information obtained by TEQSA in the course of conducting the quality
assessment may however point to issues that may require separate compliance action.
Scope
TEQSA’s definition of a third party arrangement is as follows:
Where a higher education provider has any aspect of its higher education activities or functions
carried out on its behalf through a third party, agent or partner arrangement. A third party, agent
or partner arrangement may include partnerships with other institutions, higher education
providers, or entities; the formation of joint ventures or special purpose companies; subcontracting of services; or franchising arrangements.
Third party arrangements exist in many areas in the higher education sector. Typical areas are
identified in the following list:
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academic and corporate governance
operational management
student marketing, recruitment and admissions
provision of student support services
course design, development and approval
course delivery (teaching, learning and assessment) and management
research and research partnerships
TEQSA will review these core areas of activity in a phased manner. The following three areas
have been selected for the first phase to be conducted in 2013:
► Provision of student support services
► Course design development and approval
► Course delivery (teaching, learning & assessment) and management.
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With respect to the three areas of core activity identified above TEQSA will examine the
following:
► considerations and decisions leading to an arrangement, for example, processes of
due diligence and risk assessment
► format and coverage of an arrangement
► actual implementation, monitoring and exiting arrangements.
These dimensions will inform the design of the methodology of the quality assessment and
determine the evidence and the analysis required. Data and information will be collected from
the sector on this assessment through a survey administered to all registered higher education
providers.
Report
The higher education sector will receive a report from TEQSA providing guidance on good
practice and areas for improvement in the establishment, management and operations of third
party arrangements focused on the three areas selected for the first phase in 2013. Relevant
findings will also be made available to the Minister for Tertiary Education.
Within the scope of the current quality assessment, the report will also cover:
► The types of third party arrangements currently in place in the higher education sector
► How the TEQSA Act and provisions of the Threshold Standards are being met in
relation to third party arrangements
► The quality of higher education practices, processes and outcomes
► Good practice and innovation in the sector’s approach to meeting the requirements of
the TEQSA Act and Threshold Standards
► Systematic risks and weaknesses and possible treatment strategies to address these;
and
► Issues that may inform future development of the TEQSA Act, Threshold Standards and
the Regulatory Risk Framework.
Proposed timeline
The assessment will be undertaken throughout 2013, and it is anticipated that the report will be
published towards the end of the calendar year. Indicative timelines for the various phases of the
quality assessment are provided below:
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January
March
July
October
December
Release of Terms of Reference
Survey issued to providers
Follow-up with individual providers, if necessary
Draft summary report published
Final report with recommendations published.
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Appendix A
Relevant Provisions under the TEQSA Act
Section 134 - authority for TEQSA to undertake review activity and to utilise the findings to
support TEQSA’s role in quality assurance and quality enhancement of the higher education
sector. Specifically the relevant functions include being able:
(c) to investigate whether this Act, or this Act’s associated provisions have been or are
being complied with, including by:
(i)
conducting compliance assessments and quality assessments;
(e) to collect, analyse, interpret and disseminate information relating to:
(e) higher education providers; and
(f)
regulated higher education awards; and
(g) quality assurance practice, and quality improvement in higher education;
and
(h) the Higher Education Standards Framework
(g) to conduct training to improve the quality of higher education
Section 60 - relates specifically to quality (including thematic) assessments and provides that:
‘TEQSA may review or examine any aspect of an entity’s operations to:
(a) assess the level of quality of higher education provided by one or more registered
higher education providers; or
(b) assess whether there are any systemic issues relating to a particular course of study
leading to a particular regulated higher education award; or
(c) assess the level of quality of, or whether there are any systemic issues relating to, the
courses of study that lead to one or more kinds of regulated higher education awards.’
Section 28 relates to the condition of registration for a provider to comply with requests for
‘other information’ relevant to TEQSA’s functions
Section 63 requires a person connected with a registered entity to give information or
documents to TEQSA which are relevant to TEQSA’s functions.
Section 26 - it is a condition of registration that higher education providers require any third
parties to meet all Threshold Standards.
In addition to these points of reference in the TEQSA legislation, a number of Threshold
Standards are also relevant and will be applied to the work of the quality assessment and
report.
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