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 the Canberra Institute of Technology’s (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:
•	research and feasibility studies;
•	training and skills needs analyses; and
•	the design and development of customised systems, programs and resources as well as accreditation services.
•	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.
2009-10 Priorities
Strategic and operational issues to be pursued in 2009-10 include:
•	growing the core business by strengthening working relationships with key clients;
•	becoming the training provider of choice for the ACT Government;
•	enhancing online learning capability for clients through the establishment of a new online learning development unit;
•	continuing to enhance the capacity to do business by providing high quality facilities; and
•	continuing to support 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 2009-10 priorities are to:
•	gain a better understanding of clients’ motivations and needs through regular networking and positive representation at meetings to market CIT Solutions’ capability and be responsive to client preferences;
•	implement and optimise the use of the 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 ongoing professional development.

Estimated Employment Levels
2008-09
Budget			2008-09
Est. Outcome	2009-10
Budget	
68		  Staffing  (FTE)1	73	74	
Note:
1.	Staffing levels increased in 2008-09 to manage the increased number of international students.

CIT Solutions
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								
9,343		User Charges - Non ACT Government	11,108	11,408	3	11,591	11,815	12,016		
2,569		User Charges - ACT Government	2,886	2,936	2	2,972	3,013	3,056		
167		Interest	132	105	-20	106	105	106		
160		Other Revenue	140	110	-21	110	111	113		
12,239		Total Revenue	14,266	14,559	2	14,779	15,044	15,291		
		Gains								
0		Total Gains	0	0	-	0	0	0		
12,239		Total Income	14,266	14,559	2	14,779	15,044	15,291		
		Expenses								
5,534		Employee Expenses	5,877	5,967	2	6,026	6,107	6,187		
478		Superannuation Expenses	529	540	2	548	556	563		
4,603		Supplies and Services	6,163	6,316	2	6,445	6,589	6,738		
64		Depreciation and Amortisation	57	88	54	95	112	119		
460		Other Expenses	460	436	-5	446	457	468		
11,139		Total Ordinary Expenses	13,086	13,347	2	13,560	13,821	14,075		
1,100		Operating Result	1,180	1,212	3	1,219	1,223	1,216		

CIT Solutions
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								
2,518		Cash and Cash Equivalents	2,677	2,961	11	3,290	3,640	3,990		
1,913		Receivables	1,773	1,820	3	1,868	1,919	1,970		
151		Other	117	117	-	117	117	117		
4,582		Total Current Assets	4,567	4,898	7	5,275	5,676	6,077		
		Non Current Assets								
224		Property, Plant and Equipment	204	232	14	233	207	174		
224		Total Non Current Assets	204	232	14	233	207	174		
4,806		TOTAL ASSETS	4,771	5,130	8	5,508	5,883	6,251		
		Current Liabilities								
621		Payables	593	640	8	688	739	790		
503		Employee Benefits	582	582	-	582	582	582		
735		Other	705	705	-	705	705	705		
1,859		Total Current Liabilities	1,880	1,927	3	1,975	2,026	2,077		
		Non Current Liabilities								
31		Employee Benefits	49	49	-	50	51	52		
31		Total Non Current Liabilities	49	49	-	50	51	52		
1,890		TOTAL LIABILITIES	1,929	1,976	2	2,025	2,077	2,129		
2,916		NET ASSETS	2,842	3,154	11	3,483	3,806	4,122		
		REPRESENTED BY FUNDS EMPLOYED								
2,896		Accumulated Funds	2,822	3,134	11	3,463	3,786	4,102		
20		Reserves	20	20	-	20	20	20		
2,916		TOTAL FUNDS EMPLOYED	2,842	3,154	11	3,483	3,806	4,122		

CIT Solutions
Cash Flow 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		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
11,912		User Charges	14,094	14,344	2	14,563	14,828	15,072		
167		Interest Received	132	105	-20	106	105	106		
160		Other Revenue	140	110	-21	110	111	113		
12,239		Operating Receipts	14,366	14,559	1	14,779	15,044	15,291		
		Payments								
5,517		Related to Employees	5,820	5,947	2	6,005	6,086	6,166		
478		Related to Superannuation	526	540	3	548	556	563		
4,609		Related to Supplies and Services	6,189	6,351	3	6,491	6,635	6,784		
460		Other	460	436	-5	446	457	468		
11,064		Operating Payments	12,995	13,274	2	13,490	13,734	13,981		
1,175		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	1,371	1,285	-6	1,289	1,310	1,310		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
111		Purchase of Property, Plant and Equipment and Capital Works	79	101	28	60	60	60		
111		Investing Payments	79	101	28	60	60	60		
-111		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-79	-101	-28	-60	-60	-60		
		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		
164		NET INCREASE/ (DECREASE) IN CASH HELD	392	284	-28	329	350	350		
2,354		CASH AT BEGINNING OF REPORTING PERIOD	2,285	2,677	17	2,961	3,290	3,640		
2,518		CASH AT THE END OF THE REPORTING PERIOD	2,677	2,961	11	3,290	3,640	3,990		

CIT Solutions
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	
2,716		Opening Balance	2,588	2,842	10	3,154	3,483	3,806	
		Accumulated Funds							
0		Net Effect of a Correction of an Error	-26	0	100	10	0	0	
1,100		Operating Result for the Period	1,180	1,212	3	1,219	1,223	1,216	
		Reserves							
1,100		Total Income And Expense For The Period	1,154	1,212	5	1,229	1,223	1,216	
		Transactions Involving Equity Holders Affecting Accumulated Funds							
-900		Dividend Approved	-900	-900	-	-900	-900	-900	
2,916		Closing Balance	2,842	3,154	11	3,483	3,806	4,122	
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges — non ACT Government:
•	the increase of $1.765 million in the 2008-09 estimated outcome from the original budget relates to an increase in training contracts arranged through the business development unit established in 2007-08 to manage contracted commercial work delivered by Canberra Institute of Technology (CIT), of which CIT Solutions retains a percentage of earnings; and
•	the increase of $0.3 million in the 2009-10 Budget from the 2008-09 estimated outcome relates to the ongoing development of commercial contracts for CIT.
•	user charges — ACT Government:  the increase of $0.317 million in the 2008-09 estimated outcome from the original budget relates to an increase in training programs provided to ACT Government agencies and an increase in international student management fee payments as a result of increased enrolments in 2009.
•	interest:  the decrease of $0.035 million in the 2008-09 estimated outcome from the original budget and the decrease of $0.027 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to lower interest rates applying to cash investments held.
•	other revenue:  the decrease of $0.020 million in the 2008-09 estimated outcome from the original budget and the decrease of $0.030 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to a reduction in room hire revenue.
•	employee expenses:  the increase of $0.343 million in the 2008-09 estimated outcome from the original budget relates to increased staffing levels in the international student services unit to manage the increased number of international students.
•	supplies and services: 
•	the increase of $1.560 million in the 2008-09 estimated outcome from the original budget is due to increased payments to CIT for the projects contracted through the business development unit and increased costs in managing higher numbers of international students; and
•	the increase of $0.153 million in the 2009-10 Budget from the 2008-09 estimated outcome relates to the increased activity in the business development unit and international student services unit.
•	depreciation and amortisation:  the increase of $0.031 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to leasehold improvements to buildings being carried out in 2009.
•	other expenses:  the decrease of $0.024 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to savings in insurance costs.
Balance Sheet
•	cash and cash equivalents:  the increase of $0.159 million in the 2008-09 estimated outcome from the original budget and the increase of $0.284 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to an increase in international student management fee payments received and an increase in training contracts arranged through the business development unit.
•	receivables current:  the decrease of $0.140 million in the 2008-09 estimated outcome from the original budget is due to a better than expected recovery of outstanding debts.
•	other current:  the decrease of $0.034 million in the 2008-09 estimated outcome from the original budget is due to less prepayments for leases and insurance.
•	property, plant and equipment:  the increase of $0.028 million in the 2009-10 Budget from the 2008-09 estimated outcome relates to the expected completion of leasehold improvements.
•	payables current:  the increase of $0.047 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to expected increases in agent fees as international student activity increases.
•	employee benefits current:  the increase of $0.079 million in the 2008-09 estimated outcome from the original budget is due to less staff utilising long service leave than expected.
Cash Flow Statement
Variations to the statement are explained in the notes above.