CANBERRA INSTITUTE OF TECHNOLOGY
Objectives
The Canberra Institute of Technology (CIT) seeks to train a workforce with skills appropriate to the current and forecast needs of industry in the ACT and region, and with enhanced career prospects and quality of life.
CIT is committed to creating a learning community providing practical, relevant and affordable post‑secondary education and training where students and staff can reach their full potential for education, work and life.
2006‑07 Priorities
Strategic and operational issues to be pursued in 2006‑07 include: 
•	developing innovative learning opportunities and multi‑discipline programs to address industry skill requirements in the ACT and region;
•	enhancing industry relationships to improve responsiveness and to develop joint strategies that meet industry training requirements;
•	improving client service systems for existing and potential students;
•	streamlining audit and quality assurance processes to ensure compliance with agency requirements in an efficient manner;
•	improving the CIT’s teaching and learning environment to ensure that students and staff have access to high quality facilities and an environment that is conducive to learning;
•	minimising the CIT’s impact on the environment;
•	working with schools and colleges to develop alternative pathways for students and to develop a Year 12 vocational and technical education college;
•	enhancing national and global education networks to provide staff and students with access to global knowledge and international educational experiences, and to promote CIT as an attractive and desirable destination for international students; and
•	developing leadership and management skills, and maintaining staff discipline, expertise and professional currency.

Output Classes
	Total Cost1	Government Payment for Outputs	
	2005‑06
Est. Outcome
($’000)	Budget
2006‑07
($’000)	2005‑06
Est. Outcome
($’000)	Budget
2006‑07
($’000)	
Output Class 1:
Canberra Institute of Technology	n/a	89,104	n/a	60,359	
Output 1.1:
Provision of Vocational Education and Training Services	n/a	89,104	n/a	60,359	
Note:
1.	Total cost includes depreciation of $3.805 million in 2006‑07.
Output Description
Provision of places in publicly funded courses at the Canberra Institute of Technology, consistent with training needs identified in the ACT Vocational Education and Training Plan. 

Strategic Indicators
Strategic Indicator 1 
Student Outcomes 
One of the key strategic indicators used by CIT to measure its success is students’ employment outcomes which are measured as part of the annual Student Outcomes Survey.  By focusing on students’ employment outcomes and satisfaction with vocational education and training, the Student Outcomes Survey gauges how well the CIT serves individuals and the community.
Quality and effectiveness can be measured through student outcomes against national benchmarks.  Against national benchmarks, CIT students consistently achieve high levels of employment or are undertaking further study after training.1

Note:
1.	The most recently reported figures are from 2004, as published in the National Centre for Vocational Education Research report: Student Outcomes 2005.

Accountability Indicators
	2005‑06
Targets1	2005‑06
Est. Outcome1	2006‑07 
Target	
Output Class 1: Canberra Institute of Technology	
Output 1.1: Provision of Vocational Education and Training Services	
				
a.	Student contact hours delivered by the Canberra Institute of Technology	3,735,000	3,765,750	3,739,907	
				
b.	Publicly funded course enrolments2	15,000	15,757	15,000	
				
c.	Module pass rates	75%	78%	75%	
				
d.	Course completions by students2	5,500	5,025	5,000	
				
e.	Graduate satisfaction with courses	83%	88%	83%	
				
f.	Employer satisfaction with Canberra Institute of Technology trained employees	80%	80%	80%	
				
g.	Average Government payment per annual curriculum hour	$15.5	$15.4	$16.14	
				
Notes:
1.	In the 2005‑06 Budget Papers these measures were previously reported under the Department of Education and Training’s Output, Planning and Coordination of Vocational Education and Training Services.  The 2005‑06 targets and estimated outcome results are identified here for comparative purposes.
2.	The 2005‑06 targets were amended by a notifiable instrument under Financial Management Act 1996 (NI2006‑110).

Changes to Appropriation 
Changes to Appropriation - Departmental						
 	2005-06	2006-07	2007-08	2008-09	2009-10	
Government Payment for Outputs	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2005-06 Budget	 - 	 - 	 - 	 - 	 - 	
						
2006-07 Budget Policy Adjustments						
Teachers' Wage Supplement to 3%	 - 	1,057	1,675	2,310	2,310	
Consolidating Information Technology Services	 - 	(97)	(98)	(98)	(99)	
Reducing General Procurement	 - 	(177)	(365)	(374)	(384)	
Consolidating Procurement Services	 - 	(327)	(491)	(491)	(491)	
Consolidating Human Resources and Finance Functions	 - 	(170)	(409)	(409)	(409)	
Efficiency Savings	 - 	(750)	(1,500)	(1,500)	(1,500)	
2006-07 Budget Technical Adjustments						
Direct Appropriation	 - 	58,689	59,656	60,624	61,632	
Increased Notional Superannuation Contribution Rates	 - 	2,134	2,167	2,198	2,226	
						
2006-07 Budget	 - 	60,359	60,635	62,260	63,285	

						
						
Changes to Appropriation - Departmental						
 	2005-06	2006-07	2007-08	2008-09	2009-10	
Capital Injections	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2005-06 Budget	 - 	 - 	 - 	 - 	 - 	
						
2006-07 Budget Technical Adjustments						
Direct Appropriation	 - 	5,170	5,170	5,170	5,170	
						
2006-07 Budget	 - 	5,170	5,170	5,170	5,170	

2006‑07 Capital Works Program
Departmental 
							
 	Estimated	Estimated	2006‑07	2007-08	2008-09	Expected 	
	Total	Expenditure	Financing	Financing	Financing	Completion 	
	Cost	Pre 2006‑07				Date  	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
Capital Upgrades	  2,000	-	  2,000	  			
							
Total New Capital Works	  2,000	-	  2,000	  	 	 	

Total Departmental Capital Works	  2,000   	     	  2,000   		 	 	

Canberra Institute of Technology	
Operating Statement	
  2005-06			  2005-06	   2006-07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		Government Payment for Outputs	0	60,359	#	60,635	62,260	63,285		
12,470		User Charges - Non ACT Government	12,470	13,082	5	13,701	14,429	14,765		
64,777		User Charges - ACT Government	63,977	6,996	-89	7,146	7,299	7,481		
292		Interest	302	273	-10	250	235	230		
218		Dividend Revenue	800	400	-50	400	400	400		
3,361		Other Revenue	4,561	3,445	-24	3,532	3,619	3,708		
35		Resources Received free of charge	60	35	-42	35	35	35		
81,153		Total Revenue	82,170	84,590	3	85,699	88,277	89,904		
		Gains								
0		Total Gains	0	0	-	0	0	0		
81,153		Total Income	82,170	84,590	3	85,699	88,277	89,904		
		Expenses								
50,270		Employee Expenses	50,882	48,748	-4	48,812	50,087	50,549		
7,618		Superannuation Expenses	7,618	9,650	27	9,759	10,079	10,202		
22,737		Supplies and Services	22,519	25,519	13	26,307	26,986	27,655		
3,755		Depreciation and Amortisation	3,455	3,805	10	3,855	3,905	3,905		
1,360		Other Expenses	2,385	1,382	-42	1,405	1,428	1,464		
85,740		Total Ordinary Expenses	86,859	89,104	3	90,138	92,485	93,775		
-4,587		Operating Result	-4,689	-4,514	4	-4,439	-4,208	-3,871		

Canberra Institute of Technology	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,941		Cash	2,712	2,722	..	2,749	2,796	2,838		
6,113		Receivables	4,787	4,787	-	4,787	4,787	4,787		
3,994		Investments	5,172	4,718	-9	4,386	4,185	4,174		
42		Other	55	55	-	55	55	55		
12,090		Total Current Assets	12,726	12,282	-3	11,977	11,823	11,854		
		Non Current Assets								
20		Investments	20	20	-	20	20	20		
128,013		Property, Plant and Equipment	125,125	127,220	2	129,355	131,332	133,127		
532		Intangibles	472	472	-	182	0	0		
2,048		Capital Works in Progress	3,154	2,954	-6	2,954	2,954	2,954		
130,613		Total Non Current Assets	128,771	130,666	1	132,511	134,306	136,101		
142,703		TOTAL ASSETS	141,497	142,948	1	144,488	146,129	147,955		
		Current Liabilities								
2,280		Payables	1,435	1,435	-	1,435	1,435	1,435		
6,373		Employee Benefits	6,067	6,219	3	6,843	7,331	7,819		
6,287		Other	6,607	6,607	-	6,607	6,607	6,607		
14,940		Total Current Liabilities	14,109	14,261	1	14,885	15,373	15,861		
		Non Current Liabilities								
7,414		Employee Benefits	7,328	6,877	-6	7,062	7,253	7,292		
7,414		Total Non Current Liabilities	7,328	6,877	-6	7,062	7,253	7,292		
22,354		TOTAL LIABILITIES	21,437	21,138	-1	21,947	22,626	23,153		
120,349		NET ASSETS	120,060	121,810	1	122,541	123,503	124,802		
		REPRESENTED BY FUNDS EMPLOYED								
119,459		Accumulated Funds	119,170	120,920	1	121,651	122,613	123,912		
890		Reserves	890	890	-	890	890	890		
120,349		TOTAL FUNDS EMPLOYED	120,060	121,810	1	122,541	123,503	124,802		

Canberra Institute of Technology	
Cash Flow Statement	
  2005-06			  2005-06	   2006-07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
0		Cash from Government for Outputs	0	60,359	#	60,635	62,260	63,285		
77,247		User Charges	76,447	20,078	74	20,847	21,728	22,246		
292		Interest Received	302	273	-10	250	235	230		
6,803		Other Revenue	8,003	7,228	-10	7,472	7,656	7,844		
84,342		Operating Receipts	84,752	87,938	4	89,204	91,879	93,605		
		Payments								
57,106		Related to Employees	57,606	57,603	..	57,762	59,487	60,224		
22,702		Related to Supplies and Services	21,784	25,484	17	26,272	26,951	27,620		
4,832		Other	5,857	5,195	-11	5,375	5,495	5,630		
84,640		Operating Payments	85,247	88,282	4	89,409	91,933	93,474		
-298		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	-495	-344	31	-205	-54	131		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
628		Proceeds from Sale/Maturities of Investments	628	454	-28	332	201	11		
218		Dividends	800	400	-50	400	400	400		
846		Investing Receipts	1,428	854	-40	732	601	411		
		Payments								
5,670		Purchase of Property, Plant and Equipment	5,370	5,670	6	5,670	5,670	5,670		
5,670		Investing Payments	5,370	5,670	6	5,670	5,670	5,670		
-4,824		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-3,942	-4,816	-22	-4,938	-5,069	-5,259		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
5,170		Capital Injection from Government	5,170	5,170	0	5,170	5,170	5,170		
5,170		Financing Receipts	5,170	5,170	0	5,170	5,170	5,170		
5,170		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	5,170	5,170	0	5,170	5,170	5,170		
48		NET INCREASE/(DECREASE) IN CASH HELD	733	10	-99	27	47	42		
1,893		CASH AT BEGINNING OF REPORTING PERIOD	1,979	2,712	37	2,722	2,749	2,796		
1,941		CASH AT THE END OF THE REPORTING PERIOD	2,712	2,722	..	2,749	2,796	2,838		

Canberra Institute of Technology	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
119,766		Opening Balance	119,579	120,060	..	121,810	122,541	123,503		
		Accumulated Funds								
-4,587		Operating Result for the Period	-4,689	-4,514	4	-4,439	-4,208	-3,871		
		Reserves								
-4,587		Total Income And Expense For The Period	-4,689	-4,514	4	-4,439	-4,208	-3,871		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
5,170		Capital Injections	5,170	5,170	0	5,170	5,170	5,170		
0		Inc/Dec in Net Assets due to Admin Restructure	0	1,094	#	0	0	0		
120,349		Closing Balance	120,060	121,810	1	122,541	123,503	124,802		
Notes to the Budget Statements 
Operating Statement 
•	government payment for outputs:  the increase of $60.359 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to:
–	CIT being directly appropriated ($58.689 million);
–	supplementation for notional superannuation contribution rate increases ($2.134 million); and 
–	teachers’ wage supplement to 3 per cent ($1.057 million); 
offset by:
–	efficiency savings ($0.750 million)
–	decreases associated with consolidating information technology services ($0.097 million); 
–	consolidating human resources and finance functions ($0.170 million);
–	consolidating procurement services ($0.327 million); and
–	reducing general procurement ($0.177 million);
•	user charges – non ACT Government:  the increase of $0.612 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is mainly due to an increase in student materials and services fee revenue;
•	user charges – ACT Government:
–	the decrease of $0.8 million in the 2005‑06 estimated outcome from the original budget is mainly due to decreased tendering activity associated with the Strategic Priority Programs, and a decrease in trading revenue from CIT Solutions Pty Ltd; and
–	the decrease of $56.981 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is primarily due to the reclassification of funding to government payment for output;
•	dividend revenue:  the increase of $0.582 million in the 2005‑06 estimated outcome from the original budget is mainly due to increased profitability by CIT Solutions Pty Ltd.  The decrease of $0.4 million in the 2006‑07 Budget from the 2005‑06 estimated outcome relates to CIT Solutions’ dividend returning to a more modest level;
•	other revenue:  the increase of $1.2 million in the 2005‑06 estimated outcome from the original budget, and the decrease of $1.116 million in the 2006‑07 Budget from the 2005‑06 estimated outcome, relates to one off funding in 2005‑06 for the management of the National Communication and Leadership program (under the Australian Flexible Learning Framework agreement with the Department of Education, Science and Training);
•	resources received free of charge:  the increase of $0.025 million in the 2005‑06 estimated outcome from the original budget is mainly due to increased services received from the Government Solicitor’s Office.  
•	employee expenses:  
–	the increase of $0.612 million in the 2005‑06 estimated outcome from the original budget is due to wage increases awarded in 2004-05 under the CIT certified agreements and an increase in staff associated with the management of the National Communication and Leadership program and the delivery of training under the ACT User Choice program; and
–	the decrease of $2.134 million in the 2006‑07 Budget from the 2005‑06 estimated outcome relates to the corresponding fee for service arrangement with the Shared Services Centre as a result of consolidating human resources, finance and information technology services, and efficiency savings, offset by a projected increase in certified agreement costs.
•	superannuation expenses:  the increase of $2.032 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is mainly due to increased notional superannuation contribution rates;
•	supplies and services:  
–	the decrease of $0.218 million in the 2005‑06 estimated outcome from the original budget is mainly due to lower than anticipated information technology costs; and   
–	the increase of $3 million in the 2006‑07 Budget from the 2005-06 estimated outcome relates to the corresponding fee for service payment to the Shared Services Centre as a result of the consolidation of information technology, human resources, finance and procurement services.
•	depreciation and amortisation:  the decrease of $0.3 million in the 2005‑06 estimated outcome from the original budget, and the increase of $0.350 million in the 2006‑07 Budget from the 2005‑06 estimated outcome, relates to delayed capital works projects that are expected to be completed in 2006‑07;
•	other expenses:  the increase of $1.025 million in the 2005‑06 estimated outcome from the original budget and the decrease of $1.003 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to the costs associated with managing the National Communication and Leadership program in 2005‑06.
Balance Sheet
•	current assets:  the increase of $0.636 million in the 2005‑06 estimated outcome from the original budget and the decrease of $0.444 million in the 2006‑07 Budget from the 2005‑06 estimated outcome, relates to variations in revenue received in advance for training programs and national projects;
•	non-current assets:
–	the decrease of $1.842 million in the 2005‑06 estimated outcome from the original budget relates to delays in CIT’s capital works program; and
–	the increase of $1.895m in the 2006‑07 Budget from the 2005‑06 estimated outcome relates to the upgrade of infrastructure under the capital works program.
•	total liabilities: 
–	the decrease of $0.917 million in the 2005‑06 estimated outcome from the original budget relates to reduced payables flowing from the 2004‑05 audited outcome; and
–	the decrease of $0.299 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is mainly due to a decreased level of employee benefits due to staff transferring to the Shared Services Centre as part of the consolidation of human resources, finance, and information technology services, and the departure of some long‑term senior staff, offset by projected increases under the certified agreement.