Lesson 3.3: Financial Compliance Made Simple
Duration: 20 minutes | Following the System
💡 Key Takeaway: Your role is verification, not calculation. The system handles all financial calculations and compliance requirements automatically.
🎯 What “Financial Compliance” Means For You
There are strict rules about how we handle student money – when we can keep it, when we must refund it, how much we can charge. The good news? The system enforces all these rules automatically. You just need to verify payments are recorded correctly.
Payment Tracking (Automated)
Every payment is tracked automatically from the moment it’s received:
🔄 How Payments Flow Into The System
✓ Your Role: You don’t record payments. Finance team does. You just verify they’ve been recorded before proceeding with enrollment or CoE generation.
Checking Payment Status
📊 Where to Check
Option 1: Student Profile → Finance Tab
Shows complete payment history, current balance, outstanding amounts
Option 2: Application/Enrollment Screen
Payment indicator shows: 💚 Paid | 🟡 Partial | 🔴 Unpaid
Option 3: CoE Prerequisites Check
Shows green checkmark if payment requirement met for CoE
Payment Status Indicators
| 💚 PAID | All fees paid in full or minimum deposit received for CoE |
| 🟡 PARTIAL | Some payment received but not enough for CoE (need minimum deposit) |
| 🔴 UNPAID | No payment received yet – cannot generate CoE |
| 📅 PLAN | Payment plan approved – installments scheduled |
Refund Workflows (When They Trigger)
Refunds are governed by strict regulations. The system enforces these automatically:
🔄 Refund Trigger 1: Visa Refused
What happens:
- Student provides visa rejection letter
- System calculates refund automatically (full fees minus non-refundable enrollment fee)
- Finance team processes refund within 28 days
⚠️ Your Action: Upload visa rejection document to student file. ESCALATE to Finance Team using “Visa Refusal Refund” category.
🔄 Refund Trigger 2: Course Cancelled
What happens:
- We cancel a course due to low enrollment
- System automatically identifies affected students
- Full refund triggered automatically (100% of fees paid)
- Students notified and offered alternative courses
✓ Your Action: Nothing – Academic Management handles course cancellations and refunds automatically.
🔄 Refund Trigger 3: Student Withdrawal
What happens (depends on WHEN):
| Before Course Starts | Full refund minus enrollment fee (typically $250) |
| After Week 1 | Refund of unused tuition (calculated by system based on weeks remaining) |
| After 50% Complete | No refund (fees retained for course delivered) |
⚠️ Your Action: ESCALATE all withdrawal requests. System calculates refund amount, but Compliance Manager must approve withdrawal first.
🔄 Refund Trigger 4: Provider Default
What happens:
- Very rare – if we fail to deliver course (e.g., lose CRICOS registration)
- TPS (Tuition Protection Service) covers refunds or course placement
- Senior management handles this scenario
✓ Your Action: This would never be your responsibility – just be aware it exists.
🚨 CRITICAL: Never Promise Refunds
You do NOT authorize refunds. Only Finance Team (after approval) processes them. If a student asks about refunds:
- Use “Refund Inquiry” template to explain refund policy
- ESCALATE to Finance Team for assessment
- Do NOT say “yes you’ll get a refund” or quote refund amounts
Financial Holds (What They Mean)
Sometimes you’ll see a “Financial Hold” on a student record. Here’s what that means:
🔒 What is a Financial Hold?
A block that prevents certain actions until a payment issue is resolved. The system applies these automatically based on payment rules.
| Hold Type | What It Blocks | How to Resolve |
|---|---|---|
| ENROLLMENT HOLD | Cannot complete enrollment or generate CoE | Minimum deposit must be paid |
| TRANSCRIPT HOLD | Cannot issue certificate or transcript | All outstanding fees must be paid |
| RE-ENROLLMENT HOLD | Cannot enroll in next course or term | Previous term fees must be paid |
💡 What You See: When attempting a blocked action, system shows: “Financial Hold – Contact Finance Team”. You can’t override this. Finance Team removes holds when payment is received.
Reporting (What Generates Automatically)
📈 Automatic Financial Reports
Daily Payment Report
All payments received today – goes to Finance Team automatically
Outstanding Fees Report
Students with unpaid balances – generated weekly
Payment Plan Progress Report
Students on payment plans and their payment status – generated monthly
Refund Register
All refunds processed – maintained for audit purposes
TPS Annual Return
Tuition Protection Service reporting – Finance Manager submits annually
📌 Your Access: You can view payment status for your students. You cannot run financial reports – these are restricted to Finance Team and Management.
Your Role: Verification, Not Calculation
✅ What YOU Do
Check Finance Tab shows green “Paid” or “Deposit Received”
If hold exists, direct student to Finance Team
Never promise or calculate refunds yourself
“Payment Reminder”, “Payment Plan Information”, etc.
Forward payment disputes or questions to [email protected]
❌ What You DON’T Do
Practical Exercise: Payment Scenarios
🎯 What Would You Do?
Scenario 1:
Student ready for CoE. You check Finance Tab and see “Partial Payment – $5,000 of $12,000 paid”.
Show Answer
Action: Check minimum deposit requirement (usually 50%). If $5,000 meets minimum (e.g., $6,000), you can proceed. If not, use “Payment Reminder” template to request balance needed for CoE. CoE generation will be blocked until minimum met.
Scenario 2:
Student emails: “My visa was rejected. Can I get my $18,000 back?”
Show Answer
Action: (1) Request visa rejection letter from student. (2) Upload to student file. (3) ESCALATE to Finance Team with “Visa Refusal Refund” category. (4) Use template: “We’re sorry to hear about your visa. Please provide your official rejection letter. Our Finance Team will assess your refund eligibility within 5 business days.” DO NOT quote refund amount.
Scenario 3:
Student wants transcript. System shows “Transcript Hold – Outstanding Fees $2,500”.
Show Answer
Action: Use “Outstanding Fees – Transcript Hold” template. Explain they need to pay outstanding $2,500 before transcript can be issued. Direct them to Finance Team at [email protected] to arrange payment. You cannot override the hold.
Scenario 4:
Student asks: “Can I pay in installments? I can only afford $500 per month.”
Show Answer
Action: Use “Payment Plan Inquiry” template. Explain that payment plans may be available and that Finance Team assesses these on a case-by-case basis. ESCALATE to Finance Team. They’ll contact student directly to discuss options. DO NOT promise a payment plan will be approved.
Scenario 5:
Student withdraws after 3 weeks of a 52-week course. Asks: “How much refund do I get?”
Show Answer
Action: (1) ESCALATE withdrawal to Compliance Manager (required for all withdrawals). (2) DO NOT calculate refund amount. (3) Use “Withdrawal Inquiry” template: “Your withdrawal request will be assessed by our Compliance Team. Refund eligibility will be calculated based on our refund policy and the National Code. You’ll receive a formal response within 5 business days.” Finance Team calculates refund after Compliance approves withdrawal.
🎓 Key Takeaways
- Finance Team records payments – you verify they’ve been recorded
- System enforces all financial compliance rules automatically
- Refunds trigger automatically based on regulations – you don’t calculate them
- Never promise refunds, payment plans, or fee waivers – escalate to Finance
- Financial holds prevent actions until resolved – you can’t override them
- Your role: verification and escalation, not calculation or decision-making
- Use templates for all financial communications
✓ Module 3 Complete! Ready for your assessment?