CANBERRA INSTITUTE OF TECHNOLOGY
Objectives
The Canberra Institute of Technology (CIT) seeks to develop a skilled community and to focus on providing skilled graduates, innovative workforce development solutions for businesses and strong vocational education outcomes for students.  CIT is an inclusive organisation that provides learning opportunities for individuals, regardless of their backgrounds.
CIT is committed to creating a learning community providing practical, relevant and affordable tertiary education and training where students and staff can reach their full potential for education, work and life.
CIT has well qualified staff and is responsive and committed to providing quality services and products.  CIT’s industry, community and government partnerships are strong and mutually beneficial.
2009-10 Priorities
Strategic and operational issues to be pursued in 2009-10 include:
•	growing and developing the business;
•	promoting quality education and learning;
•	implementing CIT Online to provide improved online services to clients;
•	investing in a major upgrade of equipment and technology for students;
•	establishing contemporary client services and facilities;
•	commencing the construction of a new Electrotechnology building at the Fyshwick Trade Skills Centre;
•	expanding CIT’s scholarship program to provide assistance in skills shortage areas;
•	expanding organisational capability; and
•	engaging industry, community and government partnerships.

Estimated Employment Level
2008-09
Budget			2008-09
Est. Outcome1	2009-10
Budget	
719		  Staffing  (FTE)	781	781	
Note:
1.	The increase of 62 FTE in the 2008-09 estimated outcome from the original budget is due to increases in student numbers requiring additional staffing resources (20) and more casuals being counted on the census date (April 2009) than the previous period (42).

Strategic Indicators
Strategic Indicator 1
Student Outcomes 
One of the key strategic indicators used by CIT to measure its success is students’ employment outcomes measured through 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 4 December 2008, as published in the National Centre for Vocational Education Research report:  Student Outcomes 2008.

Output Classes
	Total Cost1	Government Payment for Outputs	
	2008-09
Est. Outcome
($’000)	Budget
2009-10
($’000)	2008-09
Est. Outcome
($’000)	Budget
2009-10
($’000)	
Output Class 1:
Canberra Institute of Technology	127,925	96,245	64,268	64,769	
Output 1.1:
Provision of Vocational Education and Training Services	127,925	96,245	64,268	64,769	
Note:
1.	Total cost includes depreciation of $4.169 million in 2008-09 and $4.792 million in 2009-10, as well as decrement from revaluation of building assets of $26.813 million in 2008-09.
Output Description
Provision of places in publicly funded programs at the CIT, consistent with training needs identified in the CIT’s Statement of Intent. 

Accountability Indicators
	2008-09 
Targets	2008-09
Est. Outcome	2009-10 
Targets	
Output Class 1:  Canberra Institute of Technology	
Output 1.1:  Provision of Vocational Education and Training Services1	
				
a.	Nominal Hours 	3,770,000	3,709,891	3,770,000	
b.	Achieve key output targets.				
•	Program Enrolments2	17,500	19,070	17,500	
•	Module Pass Rates	75%	78%	75%	
•	Program Completions3	5,000	8,361	5,000	
•	Graduate Satisfaction Rate	85%	88%	85%	
•	Employer Satisfaction Rate	80%	87%	80%	
c.	Average Government payment per Nominal Hour	$17.03	$17.32	$17.18	
				
Notes:
1.	The measures for 2009-10 have been renamed from those presented in the 2008-09 Budget papers to reflect correct terminology of outputs provided by the CIT.  The underlying methodology for the target figures is the same as in the 2009-10 target and estimated outcome.
2.	The increase in 2008-09 estimated outcome from the 2008-09 target is due to more students undertaking shorter length programs.  This is reflective of the labour market in the ACT and follows the trend of recent years.
3.	The increase in 2008-09 estimated outcome from the 2008-09 target is due to an increased number of students successfully completing their studies at a proportionally higher level.  Also, the outcome reflects the inclusion of completions in 2008 that were unable to be reported in 2007.

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2008-09	2009-10	2010-11	2011-12	2012-13	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	64,195	64,363	65,257	65,849	65,849	
						
Technical Adjustments						
Treasurer's Advance - Lions Youth Haven	183	 - 	 - 	 - 	 - 	
Transfer - YARDS Program from DET	204	204	204	204	204	
						
2009-10 Budget Policy Adjustments						
Assistance with Fees in Areas of Skills Shortage	 - 	300	350	359	370	
Lions Youth Haven 	 - 	66	66	33	 - 	
Electrotechnology Program Relocation	 - 	 - 	 - 	 - 	50	
Additional Repairs and Maintenance	 - 	100	 - 	 - 	 - 	
Efficiency Dividend	 - 	 - 	(655)	(661)	(672)	
						
2009-10 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	(47)	(49)	(50)	1,056	
Revised Superannuation Contributions	(472)	(446)	(733)	(925)	(1,323)	
Federal Financial Reforms - DEEWR Indigenous Funding	 - 	70	70	70	70	
National Partnership - Fee Waivers for Childcare Qualifications	158	159	 - 	 - 	 - 	
						
2009-10 Budget	64,268	64,769	64,510	64,879	65,604	

						
						
Changes to Appropriation - Departmental						
 	2008-09	2009-10	2010-11	2011-12	2012-13	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	11,891	9,340	5,394	5,449	5,449	
						
FMA Section 16B Rollovers from 2007-08						
DEST Infrastructure Program - Wireless Infrastructure 	121	 - 	 - 	 - 	 - 	
DEST Infrastructure Program - CIT Online Development	948	 - 	 - 	 - 	 - 	
DEST Infrastructure Program - Student Services Hubs	1,240	 - 	 - 	 - 	 - 	
DEST Infrastructure Program - Fyshwick Refurbishment	527	 - 	 - 	 - 	 - 	
						
3rd Appropriation						
Various Building and Facility Improvements	2,170	 - 	 - 	 - 	 - 	
Implementation of Stormwater and Bore Water Reticulation - Bruce Campus	500	 - 	 - 	 - 	 - 	
						
2009-10 Budget Policy Adjustments						
CIT Online Implementation	 - 	2,500	2,000	 - 	 - 	
Technology Upgrade Program	 - 	1,250	1,250	1,250	1,250	
Electrotechnology Program Relocation	 - 	2,000	6,943	1,000	 - 	
						
2009-10 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	 - 	 - 	 - 	57	
Revised Commonwealth Grants - VET 	(321)	(1,123)	(1,366)	(1,634)	(1,913)	
						
2009-10 Budget	17,076	13,967	14,221	6,065	4,843	

2009-10 Capital Works Program
Departmental							
 	Estimated	Estimated	2009-10	2010-11	2011-12	Expected 	
	Total	Expenditure	Financing	Financing	Financing	Completion 	
	Cost	Pre 2009-10				Date  	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
Electrotechnology Program Relocation	9,943	-	2,000	6,943	1,000	Jun 2012	
							
Total New Works	9,943	-	2,000	6,943	1,000		
							
Capital Upgrades							
Health and Safety Improvements	400	-	400				
Energy Management/Educational Improvements	480	-	480				
Building Improvements	1,290	-	1,290				
							
Total Capital Upgrades	2,170	-	2,170	  			
							
Total New Capital Works	12,113	-	4,170	6,943	1,000	 	
 	 	 	 	 	 	 	
Works in Progress							
New Horticultural Facility - Bruce	9,000	5,000	4,000	-	-	Jan 2010	
							
Total Works in Progress	9,000	5,000	4,000	-	-		
Total Capital Works Program	21,113	5,000	8,170	6,943	1,000	 	

Canberra Institute of Technology
Operating Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			 Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
64,195		Government Payment for Outputs	64,268	64,769	1	64,510	64,879	65,604		
14,429		User Charges - Non ACT Government	15,771	14,306	-9	14,784	14,775	14,764		
7,761		User Charges - ACT Government	8,261	7,954	-4	8,153	8,165	8,165		
254		Interest	614	139	-77	139	139	139		
900		Dividend Revenue	900	900	-	900	900	900		
3,697		Other Revenue	5,197	5,243	1	4,836	3,836	3,836		
35		Resources Received Free of Charge	35	35	-	35	35	35		
91,271		Total Revenue	95,046	93,346	-2	93,357	92,729	93,443		
		Gains								
30		Other Gains	30	30	-	30	30	30		
30		Total Gains	30	30	-	30	30	30		
91,301		Total Income	95,076	93,376	-2	93,387	92,759	93,473		
		Expenses								
52,039		Employee Expenses	54,472	53,962	-1	54,667	55,105	55,676		
9,239		Superannuation Expenses	7,634	7,570	-1	7,276	6,986	6,588		
28,419		Supplies and Services	33,315	28,219	-15	28,079	28,336	28,869		
3,906		Depreciation and Amortisation	4,169	4,792	15	5,087	6,071	6,349		
0		Grants and Purchased Services	183	66	-64	66	33	0		
1,596		Other Expenses	28,152	1,636	-94	1,677	1,677	1,718		
95,199		Total Ordinary Expenses	127,925	96,245	-25	96,852	98,208	99,200		
-3,898		Operating Result	-32,849	-2,869	91	-3,465	-5,449	-5,727		

Canberra Institute of Technology
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
5,835		Cash and Cash Equivalents	5,949	6,389	7	7,027	7,665	8,303		
5,572		Receivables	4,743	4,743	-	4,743	4,743	4,743		
0		Investments	4,000	4,000	-	4,000	4,000	4,000		
187		Other	372	372	-	372	372	372		
11,594		Total Current Assets	15,064	15,504	3	16,142	16,780	17,418		
		Non Current Assets								
20		Investments	20	20	-	20	20	20		
131,214		Property, Plant and Equipment	342,719	350,034	2	359,755	360,179	370,046		
0		Intangibles	0	0	-	0	3,600	2,700		
11,381		Capital Works in Progress	15,144	17,534	16	17,477	13,977	4,034		
0		Other	11	11	-	11	11	11		
142,615		Total Non Current Assets	357,894	367,599	3	377,263	377,787	376,811		
154,209		TOTAL ASSETS	372,958	383,103	3	393,405	394,567	394,229		
		Current Liabilities								
3,406		Payables	398	398	-	398	398	398		
12,186		Employee Benefits	12,830	13,336	4	13,842	14,348	14,854		
5,058		Other	6,724	5,224	-22	4,224	4,224	4,224		
20,650		Total Current Liabilities	19,952	18,958	-5	18,464	18,970	19,476		
		Non Current Liabilities								
1,047		Employee Benefits	1,017	1,058	4	1,098	1,138	1,178		
1,047		Total Non Current Liabilities	1,017	1,058	4	1,098	1,138	1,178		
21,697		TOTAL LIABILITIES	20,969	20,016	-5	19,562	20,108	20,654		
132,512		NET ASSETS	351,989	363,087	3	373,843	374,459	373,575		
		REPRESENTED BY FUNDS EMPLOYED								
131,622		Accumulated Funds	109,473	120,571	10	131,327	131,943	131,059		
890		Reserves	242,516	242,516	-	242,516	242,516	242,516		
132,512		TOTAL FUNDS EMPLOYED	351,989	363,087	3	373,843	374,459	373,575		

Canberra Institute of Technology
Cash Flow Statement
  2009-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
64,195		Cash from Government for Outputs	64,268	64,769	1	64,510	64,879	65,604		
22,190		User Charges	24,032	22,260	-7	22,937	22,940	22,929		
254		Interest Received	614	139	-77	139	139	139		
7,792		Other Revenue	7,792	7,951	2	8,139	8,139	8,139		
900		Dividends	900	900	-	900	900	900		
95,331		Operating Receipts	97,606	96,019	-2	96,625	96,997	97,711		
		Payments								
51,153		Related to Employees	53,585	53,415	..	54,121	54,559	55,130		
9,238		Related to Superannuation	7,634	7,570	-1	7,276	6,986	6,588		
28,482		Related to Supplies and Services	32,793	28,285	-14	28,147	28,149	28,682		
0		Grants and Purchased Services	183	66	-64	66	33	0		
5,593		Other	6,178	5,743	-7	5,877	6,132	6,173		
94,466		Operating Payments	100,373	95,079	-5	95,487	95,859	96,573		
865		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	-2,767	940	134	1,138	1,138	1,138		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
0		Proceeds from Sale/Maturities of Investments	6,000	0	-100	0	0	0		
0		Investing Receipts	6,000	0	-100	0	0	0		
		Payments								
12,391		Purchase of Property, Plant and Equipment and Capital Works	17,576	11,967	-32	12,721	6,565	5,343		
0		Purchase of Land and Intangibles	0	2,500	#	2,000	0	0		
12,391		Investing Payments	17,576	14,467	-17	14,721	6,565	5,343		
-12,391		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-11,576	-14,467	-25	-14,721	-6,565	-5,343		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
11,891		Capital Injection from Government	17,076	13,967	-18	14,221	6,065	4,843		
11,891		Financing Receipts	17,076	13,967	-18	14,221	6,065	4,843		
11,891		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	17,076	13,967	-18	14,221	6,065	4,843		
365		NET INCREASE/ (DECREASE) IN CASH HELD	2,733	440	-84	638	638	638		
5,470		CASH AT BEGINNING OF REPORTING PERIOD	3,216	5,949	85	6,389	7,027	7,665		
5,835		CASH AT THE END OF THE REPORTING PERIOD	5,949	6,389	7	7,027	7,665	8,303		
Canberra Institute of Technology
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
124,519		Opening Balance	126,136	351,989	179	363,087	373,843	374,459		
		Accumulated Funds								
-3,898		Operating Result for the Period	-32,849	-2,869	91	-3,465	-5,449	-5,727		
		Reserves								
0		Increase/(Decrease) in asset revaluation reserve	241,626	0	-100	0	0	0		
-3,898		Total Income And Expense For The Period	208,777	-2,869	-101	-3,465	-5,449	-5,727		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
11,891		Capital Injections	17,076	13,967	-18	14,221	6,065	4,843		
132,512		Closing Balance	351,989	363,087	3	373,843	374,459	373,575		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement 
•	government payment for outputs:  the increase of $0.501 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to funding for new initiatives ($0.466 million).
•	user charges — non ACT Government:
•	the increase of $1.342 million in the 2008-09 estimated outcome from the original budget is mainly due to an increase in international student tuition revenue and services fees revenue; and
•	the decrease of $1.465 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to an expectation of more normal levels of international student and commercial contracts revenue.
•	user charges — ACT Government:
•	the increase of $0.5 million in the 2008-09 estimated outcome from the original budget is due to increased tendering activity associated with apprenticeships and traineeships; and 
•	the decrease of $0.307 million in the 2009-10 Budget from the 2008-09 estimated outcome reflects a return to normal levels of tendering activity with other ACT Government agencies.
•	interest:
•	the increase of $0.360 million in the 2008-09 estimated outcome from the original budget is due to higher returns and higher cash and investment balances; and
•	the decrease of $0.475 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to a lower level of funds anticipated to be held and lower interest rates.
•	other revenue:  the increase of $1.5 million in the 2008-09 estimated outcome from the original budget relates to increased rental revenue from third parties and one-off funding for the management of the Australian Flexible Learning Framework project.
•	employee expenses:  the increase of $2.433 million in the 2008-09 estimated outcome from the original budget is mainly due to a reallocation of costs from superannuation expenses ($1.251 million) and increased staffing levels to service additional students ($1.182 million). 
•	superannuation expenses:  the decrease of $1.605 million in the 2008-09 estimated outcome from the original budget is due to the reallocation of superannuation expenses to employee expenses ($1.251 million) and reduced superannuation contributions.
•	supplies and services:
•	the increase of $4.896 million in the 2008-09 estimated outcome from the original budget relates mainly to increased expenses to service significantly higher numbers of international students ($1.689 million), increased costs associated with increased outputs and courses run due to higher student numbers, increased insurance premiums and higher than expected prices for utilities ($2.207 million) and one off upgrades to facilities and grounds to improve student amenities ($1 million); and
•	the decrease of $5.096 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to the finalisation of one off improvements to the grounds and facilities ($1 million), a reduction in the facilities based cost as training activities are consolidated at the new horticultural facility on the Bruce campus ($0.085 million), a return to expected levels of student numbers and international students numbers ($3.560 million) and a reduction in the use of consultants and contractors for strategic planning and initiatives ($0.450 million).
•	depreciation and amortisation:
•	the increase of $0.263 million in the 2008-09 estimated outcome from the original budget is primarily due to increases in asset values following their revaluation; and 
•	the increase of $0.623 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to the full year effect of the revaluation of assets and additional asset purchases.
•	other expenses:
•	the increase of $26.556 million in the 2008-09 estimated outcome from the original budget is due to the decrement of building values following an asset revaluation in 2008; and 
•	the decrease of $26.516 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to the one off nature of the 2008-09 revaluation decrement.
Balance Sheet
•	cash and cash equivalents:
•	the increase of $0.114 million in the 2008-09 estimated outcome from the original budget relates to a higher opening cash position flowing from the previous financial year; and
•	the increase of $0.440 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to an expected reduction in facilities based costs as training activities are consolidated following the opening of the new Horticultural Facility on the Bruce campus.
•	receivables:  the decrease of $0.829 million in the 2008-09 estimated outcome from the original budget is due to a reduction in debtors flowing from the 2007-08 outcome.
•	investments:  the increase of $4 million in the 2008-09 estimated from the original budget is due to a better than expected 2007-08 outcome which realised cash surpluses that were invested during the year.
•	other current assets:  the increase of $0.185 million in the 2008-09 estimated outcome from the original budget is due to more prepayments in library resources and insurance fees.
•	property, plant and equipment:
•	the increase of $211.505 million in the 2008-09 estimated outcome from the original budget relates mainly to the revaluation of assets; and
•	the increase of $7.315 million in the 2009-10 Budget from the 2008-09 estimated outcome relates to the capital works program.
•	capital works in progress:  the increase of $3.763 million in the 2008-09 estimated outcome from the original budget and the increase of $2.390 million in 2009-10 Budget from the 2008-09 estimated outcome relates to new works.
•	payables:  the decrease of $3.008 million in the 2008-09 estimated outcome from the original budget is due the timing of payments to suppliers.
•	current employee benefits:
•	the increase of $0.644 million in the 2008-09 estimated outcome from the original budget relates mainly to increased staff levels and entitlements accruing at higher marginal rates as salaries increase; and
•	the increase of $0.506 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to increases in staff pay rates under CIT’s certified agreements flowing through to increased benefits owing to employees.
•	other current liabilities:
•	the increase of $1.666 million in the 2008-09 estimated outcome from the original budget is due to more revenue being held in advance for student fees and large Commonwealth contracts; and  
•	the decrease of $1.5 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to less revenue in advance for Commonwealth contracts and student fees.
•	reserves:  the increase of $241.626 million in the 2008-09 estimated outcome from the original budget is due to the revaluation of assets conducted as a requirement of the Accounting Standards.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.