CIT SOLUTIONS PTY LTD
Objectives
CIT Solutions Pty Ltd (CIT Solutions) is a company owned by the Canberra Institute of Technology (CIT), and which operates under CIT’s status as a Registered Training Organisation (RTO).  CIT Solutions is focussed on providing customised training, education and consultancy services in the ACT, Australia and internationally.  To provide these services it draws on the expertise of the academic staff of CIT, as well as carefully selected contractors and consultants from industry and academia.
CIT Solutions provides most of the CIT’s commercial activities through a range of services that include:
•	delivering a wide range of nationally accredited qualifications, short accredited programs and personal development and leisure programs;
•	providing a wide range of consultancy services including: 
–	the design and development of customised systems, programs and resources as well as accreditation services; and
–	training and skills needs analyses.
•	providing individualised training in more than 80 languages; and
•	coordinating CIT’s international activities including marketing, student recruitment, student pastoral care, student accommodation and off-shore educational activities.
2010‑11 Priorities
Strategic and operational issues to be pursued in 2010‑11 include:
•	continuing to grow the core business by strengthening working relationships with key clients;
•	striving to become the training provider of choice for the ACT Government;
•	enhancing the online learning capability for clients through the development of new online training programs;
•	continuing to enhance the capacity to do business by providing high quality facilities; and
•	continuing to support our staff and contractors to optimise their job satisfaction, work outputs and capability to interact with clients through professional development activities.  

Business and Corporate Strategies
The strategies to be employed to achieve the 2010‑11 priorities are to:
•	gain a better understanding of client’s motivations and needs through regular networking and positive representation at meetings to market CIT Solutions’ capability and be responsive to client preferences;
•	optimise the use of a client relationship database in order to establish and maintain an internal culture of sharing intelligence and collaboration to better meet the needs of clients;
•	research new learning and development trends and apply ‘good practice’ models in order to develop innovative training programs to grow CIT Solutions’ capability;
•	conduct regular evaluations of programs, resources and delivery strategies and make improvements based on the information gathered;
•	enhance the flexibility of products and services through appropriate use of e‑learning and online administration;
•	invest sufficiently to provide well maintained facilities and equipment to support current and projected business needs;
•	improve recruitment strategies to attract and retain staff and contractors by providing competitive remuneration and attractive conditions of service; and
•	provide a work environment that respects all staff and contractors and enables them to perform their roles effectively through job rotation, coaching, mentoring and on‑going professional development.
Estimated Employment Levels
2008‑09
Actual Outcome		2009-10
Budget
	2009-10
Est. Outcome	2010-11
Budget
	
82	Staffing (FTE)1	74	83	83	
Note:
1.	The increase of 9 FTEs in the 2009‑10 estimated outcome from the original budget is due to increased staffing required for the management of increased numbers of CIT international students and increased activity in international language training.

CIT Solutions Pty Ltd
Operating Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
11,408		User Charges - Non ACT Government	12,119	12,338	2	12,607	12,809	13,023		
2,936		User Charges - ACT Government	4,036	4,069	1	4,110	4,153	4,207		
105		Interest	125	126	1	125	126	126		
110		Other Revenue	130	130	-	131	133	135		
14,559		Total Revenue	16,410	16,663	2	16,973	17,221	17,491		
		Gains								
0		Total Gains	0	0	-	0	0	0		
14,559		Total Income	16,410	16,663	2	16,973	17,221	17,491		
		Expenses								
5,967		Employee Expenses	6,982	6,994	..	7,112	7,193	7,275		
540		Superannuation Expenses	601	614	2	626	633	641		
6,316		Supplies and Services	6,896	7,010	2	7,154	7,303	7,471		
88		Depreciation and Amortisation	120	127	6	144	151	151		
436		Other Expenses	638	647	1	658	669	681		
13,347		Total Ordinary Expenses	15,237	15,392	1	15,694	15,949	16,219		
1,212		Operating Result	1,173	1,271	8	1,279	1,272	1,272		
1,212		Total Comprehensive Income	1,173	1,271	8	1,279	1,272	1,272		

CIT Solutions
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
2,961		Cash and Cash Equivalents	3,047	3,432	13	3,838	4,244	4,650		
1,820		Receivables	2,218	2,256	2	2,307	2,358	2,409		
117		Other	95	95	-	95	95	95		
4,898		Total Current Assets	5,360	5,783	8	6,240	6,697	7,154		
		Non Current Assets								
232		Property, Plant and Equipment	410	391	-5	375	348	315		
0		Intangibles	13	33	154	23	17	17		
232		Total Non Current Assets	423	424	..	398	365	332		
5,130		TOTAL ASSETS	5,783	6,207	7	6,638	7,062	7,486		
		Current Liabilities								
640		Payables	513	561	9	612	663	714		
582		Employee Benefits	733	737	1	737	737	737		
705		Other	1,117	1,117	-	1,117	1,117	1,117		
1,927		Total Current Liabilities	2,363	2,415	2	2,466	2,517	2,568		
		Non Current Liabilities								
49		Employee Benefits	120	121	1	122	123	124		
0		Other Provisions	23	23	-	23	23	23		
49		Total Non Current Liabilities	143	144	1	145	146	147		
1,976		TOTAL LIABILITIES	2,506	2,559	2	2,611	2,663	2,715		
3,154		NET ASSETS	3,277	3,648	11	4,027	4,399	4,771		
		REPRESENTED BY FUNDS EMPLOYED								
3,134		Accumulated Funds	3,257	3,628	11	4,007	4,379	4,751		
20		Reserves	20	20	-	20	20	20		
3,154		TOTAL FUNDS EMPLOYED	3,277	3,648	11	4,027	4,399	4,771		

CIT Solutions
Cash Flow Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
14,344		User Charges	16,144	16,437	2	16,702	16,946	17,211		
105		Interest Received	125	126	1	125	126	126		
110		Other Revenue	130	130	-	131	133	135		
14,559		Operating Receipts	16,399	16,693	2	16,958	17,205	17,472		
		Payments								
5,947		Related to Employees	6,724	6,782	1	6,863	6,943	7,023		
540		Related to Superannuation	600	608	1	616	623	630		
6,351		Related to Supplies and Services	6,931	7,056	2	7,200	7,349	7,517		
436		Other	633	642	1	653	664	676		
13,274		Operating Payments	14,888	15,088	1	15,332	15,579	15,846		
1,285		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	1,511	1,605	6	1,626	1,626	1,626		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
0		Proceeds from Sale of Property, Plant & Equipment	10	0	-100	0	0	0		
0		Investing Receipts	10	0	-100	0	0	0		
		Payments								
101		Purchase of Property, Plant and Equipment and Capital Works	326	320	-2	320	320	320		
101		Investing Payments	326	320	-2	320	320	320		
-101		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-316	-320	-1	-320	-320	-320		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
900		Dividends to Government	900	900	-	900	900	900		
900		Financing Payments	900	900	-	900	900	900		
-900		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	-900	-900	-	-900	-900	-900		
284		NET INCREASE/ (DECREASE) IN CASH HELD	295	385	31	406	406	406		
2,677		CASH AT BEGINNING OF REPORTING PERIOD	2,752	3,047	11	3,432	3,838	4,244		
2,961		CASH AT THE END OF THE REPORTING PERIOD	3,047	3,432	13	3,838	4,244	4,650		

CIT Solutions
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
2,822		Opening Accumulated Funds	2,984	3,257	9	3,628	4,007	4,379		
20		Opening Other Reserve	20	20	-	20	20	20		
2,842		Balance at the Start of the Reporting Period	3,004	3,277	9	3,648	4,027	4,399		
		Comprehensive Income								
1,212		Operating Result for the Period	1,173	1,271	8	1,279	1,272	1,272		
1,212		Total Comprehensive Income	1,173	1,271	8	1,279	1,272	1,272		
0		Total Movement in Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
-900		Dividend Approved	-900	-900	-	-900	-900	-900		
-900		Total Transactions Involving Owners Affecting Accumulated Funds	-900	-900	-	-900	-900	-900		
		Closing Equity								
3,134		Closing Accumulated Funds	3,257	3,628	11	4,007	4,379	4,751		
20		Closing Other Reserve	20	20	-	20	20	20		
3,154		Balance at the End of the Reporting Period	3,277	3,648	11	4,027	4,399	4,771		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges — non ACT Government:  the increase of $0.711 million in the 2009‑10 estimated outcome from the original budget and the increase of $0.219 million in the 2010‑11 Budget from the 2009‑10 estimated outcome relates to an increase in training provided to Commonwealth Government agencies under contracts for international language training and other vocational programs.
•	user charges — ACT Government:  the increase of $1.1 million in the 2009‑10 estimated outcome from the original budget relates to an increase in international student management fee payments from CIT resulting from increased enrolments in 2010 ($0.9 million) and revenue from the ACT Department of Education and Training for the delivery of traineeship programs ($0.2 million).
•	interest:  the increase of $0.020 million in the 2009‑10 estimated outcome from the original budget is due to an increase in interest rates applying to bank deposits towards the end of the 2009‑10 financial year.
•	other revenue:  the increase of $0.020 million in the 2009-10 estimated outcome from the original budget is due to scholarship funding for one additional AUSAID sponsored student studying in 2010.
•	employee expenses:  the increase of $1.015 million in the 2009‑10 estimated outcome from the original budget relates to increased staffing levels in the international student services unit ($0.4 million) and international language training centre ($0.525 million), as well as a one-off adjustment to employee leave provisions ($0.090 million).
•	superannuation expenses:  the increase of $0.061 million in the 2009‑10 estimated outcome from the original budget is due to increased staffing levels in the international services unit and international language training centre.
•	supplies and services: 
–	the increase of $0.580 million in the 2009‑10 estimated outcome from the original budget is due to increased contractor payments for language training ($0.350 million), refurbishment of facilities ($0.150 million) and increased operating expenses due to high training activity ($0.080 million); and
–	the increase of $0.114 million in the 2010‑11 Budget from the 2009‑10 estimated outcome relates to an increase in payments to CIT for contracted commercial projects delivered by CIT.
•	depreciation and amortisation:  the increase of $0.032 million in the 2009‑10 estimated outcome from the original budget is due to continued leasehold improvements.
•	other expenses:  the increase of $0.202 million in the 2009‑10 estimated outcome from the original budget is due to increased commission payments to international agents for recruitment of increased numbers of CIT international students.
Balance Sheet
•	cash and cash equivalents:  the increase of $0.086 million in the 2009‑10 estimated outcome from the original budget and the increase of $0.385 million in the 2010‑11 Budget from the 2009‑10 estimated outcome reflects retained cash surpluses.
•	receivables current:  the increase of $0.398 million in the 2009‑10 estimated outcome from the original budget is due to higher than anticipated training activity.
•	other current:  the decrease of $0.022 million in the 2009‑10 estimated outcome from the original budget is due to less prepaid international agent commissions in 2010.
•	property, plant and equipment:  the increase of $0.178 million in the 2009‑10 estimated outcome from the original budget is due to leasehold improvements to accommodate the expanded international student services unit.
•	intangibles:   the increase of $0.013 million in the 2009‑10 estimated outcome from the original budget and the increase of $0.020 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to the purchase of software used for training purposes.
•	payables current:
–	the decrease of $0.127 million in the 2009‑10 estimated outcome from the original budget is due to a decrease in the level of creditors at year end with more timely submission of contractor’s claims; and
–	the increase of $0.048 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to increased training activity.
•	employee benefits current and non current:  the increase of $0.222 million in the 2009‑10 estimated outcome from the original budget is due to increased staffing levels and changed methodology for calculating employee leave provisions.
Cash Flow Statement
Variances in the statement are explained in the notes above.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.