Inquiry into the Role of Institutes of TAFE
Submissions

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Submission 8

Joint Submission:

Inquiry into the Appropriate Roles of Institutes of Technical and Further Education

24 October 1997

The Australian professional accounting bodies, the Australian Society of Certified Accountants (ASCPA) and The Institute of Chartered Accountants in Australia (ICAA), welcome the opportunity to provide input to the inquiry into the role of institutes of technical and further education.

The Australian professional accounting bodies are concerned with advancing members' careers as professional accountants, business advisors, finance experts and business information experts. That role includes responsibility for progressing new entrants to the accounting workforce to senior professional status and the raising of professional standards. Through their own post graduate professional education programs, the professional accounting bodies progress the university graduate to full professional status as either a Certified Practising Accountant (CPA) with the ASCPA or a Chartered Accountant (CA) with the ICAA. The ASCPA and the ICAA represent over 100,000 members active in the accounting profession in Australia and South East Asia.

Our interest in this inquiry relates to:

• ensuring the continued recognition of a university degree for entrance to the accounting profession;
• acknowledging the legitimate and valuable role of the TAFE sector in the development of participants in the accounting industry;
• outlining existing articulation pathways leading to professional membership for TAFE diplomates;
• expressing concerns about the different ways in which a TAFE and a university education is funded and the impact this may have on career choice; and
• quality issues which are a concern to the ASCPA and ICAA if the role of the TAFE sector is to change.

Degree Entry to the Professions

The ASCPA and ICAA maintain that the professional accountant is a graduate with a university degree of at least three years full-time duration at undergraduate level, who completed a post graduate professional education program such as the ASCPA's CPA Program or the ICAA's Professional Year Programme (PY). In the United States of America a five year degree is required and in New Zealand a four year degree is required by the local professional accounting bodies for entry to their professional education programs/examinations.

Universities provide a forum for research, scholarship and learning, introducing students to methodologies that they will use to enhance the capability and performance of the workplace and the community. A university education is seen to prepare the graduate for the responsible and often specialist positions in the workforce which require the exercise of judgement and the assumption of accountability. An accredited university business degree is designed to enhance students' intellectual and personal capacities, such as critical and independent thinking, and develop communication and interpersonal skills, as well as impart an extensive body of technical accounting and business related knowledge.

Role of the TAFE Sector

We believe that there is a legitimate role for the TAFE sector in the accounting industry. Under an Australian Standards Framework proposed by the National Training Board, an eight level structure has been identified. Some of the lower and all the middle levels of this structure are identified as occupations that require a TAFE qualification. The type of work people employed at these levels may engage in is of a more technical nature. TAFE certificate holders occupy bookkeeper and accounts supervisor type roles. TAFE diplomates play an important role in the accounting industry, occupying technical and support roles such as accounting technician and accounts managers. We believe that recent ITAB funded research into middle level accounting competencies supports this structure.

There is a demand in the workplace for people at these levels and a need for the type of courses that produce them. In preparing individuals for these roles, the TAFE sector makes an important contribution to the community and the economy. We strongly support the maintenance of the vocational and technical orientation of TAFE education and training. If the TAFE sector changes into a collection of quasi university institutions, then there will be a need to establish separate institutions to provide vocational and technical training.

Articulation into University Courses

Ongoing research conducted by the two professional accounting bodies indicates that some 14% of students enrolled in courses which lead to the award of an accredited commerce degree at university, hold TAFE qualifications. The professional accounting bodies have developed policies to encourage TAFE diplomates who have the capacity, ambition and desire to progress towards a professional role in the accounting industry. Up to one year advanced standing in a university degree is accepted by the ASCPA and ICAA for a TAFE Associate/Advanced Diploma. In addition, certain Masters degrees of two years duration are recognised as preparing non-degree holders, including holders of TAFE qualifications, to enter the profession. The professional accounting bodies recently accredited such a Masters degree specifically targeted at TAFE diplomates from the University of Technology, Sydney.

Furthermore, the ASCPA and ICAA have approved a pilot program providing accelerated articulation of 18 months from TAFE into university courses and are monitoring the situation carefully. However, as the program is only in its initial stages we await an evaluation of the program and student progression before confirming a position on these type of TAFE/University arrangements.

Funding

We believe the different way in which the TAFE sector and the university sector are funded is relevant to this inquiry. It is of some concern to us that the differential between the cost to the student of TAFE study and university study may be a factor in determining student choice of tertiary institution rather than career orientation and intellectual ability. We propose that the proportional costs of a tertiary education for students in each sector be equivalent and that a deferred fee payment scheme should be established for TAFE students.

Quality Issues

It is the professional accounting bodies' understanding that there is considerable variation in the quality of TAFE courses and between TAFE subjects depending on which Sstate or region offers the course or subject and whether the course or subject is centrally and/or locally examined. We believe that the current focus of the TAFE sector should be on ensuring that vocational education and training provided by all colleges and institutions be of an acceptable standard, rather than pursuing the development of a small number of elite institutions. This is of particular importance as private and/or offshore institutions undertake the provision of TAFE courses. The future focus of TAFE should be on developing excellence in the vocational and training area rather than attempting to emulate the university sector.

Summary

The ASCPA and ICAA submit that the appropriate and important role of the TAFE sector is to provide a vocational and technically oriented education. While recognising that institutes of TAFE and universities provide a tertiary level education, the professional accounting bodies believe there are valid reasons for maintaining distinctive and separate roles for the two sectors. We believe the articulation arrangements outlined in our submission adequately address the needs of TAFE diplomates (in the accounting area) who have the capacity and desire to experience the benefits and advantages of a university education.

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