CIT SOLUTIONS PTY LTD
Objectives
CIT Solutions Pty Ltd is a company owned by the Canberra Institute of Technology (CIT), and operates under the 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 is committed to adding value to its clients’ organisations through the provision of a range of services that include:
•	training, on a commercial basis, for nationally accredited qualifications and non‑accredited personal development and leisure programs;
•	developing customised solutions and programs which are both sensitive to client needs and competitively priced;
•	providing consultancy services to clients in Australia and overseas;
•	marketing CIT’s onshore international student programs and establishing CIT as an international education provider of choice; and
•	extending and multiplying CIT’s capability to respond to the needs of industry, commerce, government and the community. 
2006-07 Priorities
Strategic and operational issues to be pursued in 2006‑07 include:
•	focussing marketing efforts on business with key clients in areas of proven capability;
•	expanding business in online courses and modules in key areas;
•	winning new offshore projects with minimal risk exposure; 
•	maintaining and growing inbound international student activity;
•	reducing commercial risk and improving efficiency through the introduction of integrated systems and quality audit processes; and
•	completing an organisational restructure that achieves quality commercial outputs and provides the required range of services to CIT.

CIT Solutions	
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								
7,150		User Charges - Non ACT Government	7,100	7,320	3	7,531	7,686	7,901		
1,857		User Charges - ACT Government	1,757	1,804	3	1,851	1,900	1,950		
132		Interest	132	151	14	164	177	178		
9,139		Total Revenue	8,989	9,275	3	9,546	9,763	10,029		
		Gains								
0		Total Gains	0	0	-	0	0	0		
9,139		Total Income	8,989	9,275	3	9,546	9,763	10,029		
		Expenses								
3,700		Employee Expenses	3,900	4,034	3	4,122	4,144	4,195		
526		Superannuation Expenses	601	618	3	630	633	640		
4,235		Supplies and Services	3,135	3,440	10	3,550	3,661	3,775		
150		Depreciation and Amortisation	69	82	19	119	176	246		
239		Other Expenses	389	395	2	401	407	413		
8,850		Total Ordinary Expenses	8,094	8,569	6	8,822	9,021	9,269		
289		Operating Result	895	706	-21	724	742	760		

CIT Solutions	
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								
103		Cash	1,068	957	-10	881	856	919		
1,777		Receivables	912	912	-	912	912	912		
1,648		Investments	1,768	2,119	20	2,476	2,826	3,151		
82		Other	97	97	-	97	97	97		
3,610		Total Current Assets	3,845	4,085	6	4,366	4,691	5,079		
		Non Current Assets								
145		Property, Plant and Equipment	154	248	61	320	365	365		
145		Total Non Current Assets	154	248	61	320	365	365		
3,755		TOTAL ASSETS	3,999	4,333	8	4,686	5,056	5,444		
		Current Liabilities								
707		Payables	727	727	-	727	727	727		
474		Employee Benefits	367	368	..	368	368	368		
597		Other	436	436	-	436	436	436		
1,778		Total Current Liabilities	1,530	1,531	..	1,531	1,531	1,531		
		Non Current Liabilities								
201		Employee Benefits	156	183	17	212	240	268		
201		Total Non Current Liabilities	156	183	17	212	240	268		
1,979		TOTAL LIABILITIES	1,686	1,714	2	1,743	1,771	1,799		
1,776		NET ASSETS	2,313	2,619	13	2,943	3,285	3,645		
		REPRESENTED BY FUNDS EMPLOYED								
1,756		Accumulated Funds	2,293	2,599	13	2,923	3,265	3,625		
20		Reserves	20	20	-	20	20	20		
1,776		TOTAL FUNDS EMPLOYED	2,313	2,619	13	2,943	3,285	3,645		

CIT Solutions	
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								
9,007		User Charges	8,857	9,124	3	9,382	9,586	9,851		
132		Interest Received	132	151	14	164	177	178		
9,139		Operating Receipts	8,989	9,275	3	9,546	9,763	10,029		
		Payments								
4,187		Related to Employees	4,512	4,624	2	4,723	4,749	4,807		
4,235		Related to Supplies and Services	3,135	3,440	10	3,550	3,661	3,775		
239		Other	389	395	2	401	407	413		
8,661		Operating Payments	8,036	8,459	5	8,674	8,817	8,995		
478		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	953	816	-14	872	946	1,034		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
194		Proceeds from Sale/Maturities of Investments	194	294	52	294	294	294		
194		Investing Receipts	194	294	52	294	294	294		
		Payments								
81		Purchase of Property, Plant and Equipment	81	176	117	191	221	246		
369		Purchase of Investments	162	645	298	651	644	619		
450		Investing Payments	243	821	238	842	865	865		
-256		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-49	-527	-976	-548	-571	-571		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
218		Dividends to Government	800	400	-50	400	400	400		
218		Financing Payments	800	400	-50	400	400	400		
-218		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-800	-400	50	-400	-400	-400		
4		NET INCREASE/(DECREASE) IN CASH HELD	104	-111	-207	-76	-25	63		
99		CASH AT BEGINNING OF REPORTING PERIOD	964	1,068	11	957	881	856		
103		CASH AT THE END OF THE REPORTING PERIOD	1,068	957	-10	881	856	919		

CIT Solutions	
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		
1,705		Opening Balance	2,218	2,313	4	2,619	2,943	3,285		
		Accumulated Funds								
289		Operating Result for the Period	895	706	-21	724	742	760		
		Reserves								
289		Total Income And Expense For The Period	895	706	-21	724	742	760		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
-218		Dividend Approved	-800	-400	50	-400	-400	-400		
1,776		Closing Balance	2,313	2,619	13	2,943	3,285	3,645		
Notes to the Budget Statements
Operating Statement
•	user charges – non ACT Government: the increase of $0.220 million in the 2006‑07 Budget from the 2005‑06 estimated outcome relates to expected new contracts being obtained in 2006‑07; 
•	user charges – ACT Government:  the decrease of $0.1 million in the 2005‑06 estimated outcome from the original budget relates to a reduction in revenue from CIT associated with the management of student accommodation, combined with decreased project activity in the first semester of 2006 due to a small reduction in the number of programs delivered;
•	employee expenses:  
–	the increase of $0.2 million in the 2005‑06 estimated outcome from the original budget relates to the recruitment of additional staff to manage new projects; and
–	the increase of $0.134 million in the 2006‑07 Budget from the 2005‑06 estimated outcome relates to an expected increase in contract activity;
•	superannuation expenses:  the increase of $0.075 million in the 2005‑06 estimated outcome from the original budget relates to the anticipated recruitment of additional staff to manage new projects;
•	
supplies and services: 
–	the decrease of $1.1 million in the 2005‑06 estimated outcome from the original budget is due to lower expenditure on corporate overheads and reduced student accommodation management costs as these properties are now being managed by CIT; and
–	the increase of $0.305 million in the 2006‑07 Budget from the 2005‑06 estimated outcome relates to expected increases resulting from new contract work to be commenced in 2006‑07;
•	depreciation and amortisation:  the decrease of $0.081 million in the 2005‑06 estimated outcome from the original budget reflects a revision to depreciation schedules and the temporary use of operating leases for some fleet and office equipment; and
•	other expenses:  the increase of $0.150 million in the 2005‑06 estimated outcome from the original budget relates to higher than expected international student recruitment commissions.
Balance Sheet
•	current assets: 
–	the increase of $0.235 million in the 2005‑06 estimated outcome from the original budget reflects higher levels of cash flowing from the 2005 audited result, partially offset by an increased dividend payment to CIT; and
–	the increase of $0.240 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects increased cash and investments associated with the projected profitability of the company.
•	property, plant and equipment:  the increase of $0.094 million in the 2006‑07 Budget from the 2005‑06 estimated outcome relates to an anticipated increase in the vehicle fleet, the purchase of office equipment and the enhancement of training facilities; and
•	total liabilities:  the decrease of $0.293 million in the 2005‑06 estimated outcome from the original budget relates to reduced employee benefits due to the retirement of a senior staff member, an increase in long service leave being taken by staff, and a reduction in revenue held in advance for tendered projects.
Cash Flow Statement
•	purchase of property plant and equipment: the increase of $0.095 million in the 2006‑07 Budget from the 2005‑06 estimated outcome relates to an anticipated increase in the vehicle fleet and the purchase of equipment; and
•	dividends to Government:
–	the increase of $0.582 million in the 2005‑06 estimated outcome from the original budget reflects the managing board’s decision to increase the payment based on improved operating performance; and
–	the decrease of $0.4 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects a reduction in the dividend payment to a more modest level.