CIT SOLUTIONS PTY LTD
Objectives
CIT Solutions Pty Ltd is a company owned by the Canberra Institute of Technology (CIT), and which 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 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
•	co-ordinating CIT’s international activities including marketing, student recruitment, student pastoral care, student accommodation and off-shore education activities.
2008‑09 Priorities
Strategic and operational issues to be pursued in 2008‑09 include:
•	developing CIT’s capacity to undertake commercial activity through the establishment of a new business development unit within CIT Solutions to manage commercial work;
•	improving the profitability of business lines through regular reviews to assess viability, market position and the cost of programs being delivered;
•	delivering quality programs and services through the development of new programs and the integration of e-learning principles into program delivery;
•	strengthening working relationships to win and successfully deliver new commercial projects;
•	enhancing 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, and better succession planning.  

Estimated Employment Levels
2007-08 Budget			2007-08
Est. Outcome	2008-09
Budget	
64		Staffing (FTE)	68	68	

CIT Solutions	
Operating Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
8,274		User Charges - Non ACT Government	9,078	9,343	3	9,617	9,773	9,970		
1,113		User Charges - ACT Government	2,516	2,569	2	2,619	2,655	2,696		
180		Interest	151	167	11	170	172	172		
10		Other Revenue	160	160	-	130	130	131		
9,577		Total Revenue	11,905	12,239	3	12,536	12,730	12,969		
		Gains								
0		Total Gains	0	0	-	0	0	0		
9,577		Total Income	11,905	12,239	3	12,536	12,730	12,969		
		Expenses								
4,474		Employee Expenses	5,441	5,534	2	5,622	5,680	5,759		
369		Superannuation Expenses	469	478	2	489	497	505		
3,259		Supplies and Services	4,459	4,603	3	4,734	4,841	4,962		
57		Depreciation and Amortisation	54	64	19	74	74	74		
402		Other Expenses	452	460	2	436	446	457		
8,561		Total Ordinary Expenses	10,875	11,139	2	11,355	11,538	11,757		
1,016		Operating Result	1,030	1,100	7	1,181	1,192	1,212		

CIT Solutions	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
2,908		Cash and Cash Equivalents	2,354	2,518	7	2,757	3,038	3,339		
1,075		Receivables	1,867	1,913	2	1,960	2,008	2,059		
82		Other	151	151	-	151	151	151		
4,065		Total Current Assets	4,372	4,582	5	4,868	5,197	5,549		
		Non Current Assets								
201		Property, Plant and Equipment	177	224	27	266	278	290		
201		Total Non Current Assets	177	224	27	266	278	290		
4,266		TOTAL ASSETS	4,549	4,806	6	5,134	5,475	5,839		
		Current Liabilities								
447		Payables	575	621	8	668	716	767		
516		Employee Benefits	495	503	2	503	503	503		
650		Other	735	735	-	735	735	735		
1,613		Total Current Liabilities	1,805	1,859	3	1,906	1,954	2,005		
		Non Current Liabilities								
38		Employee Benefits	28	31	11	31	32	33		
38		Total Non Current Liabilities	28	31	11	31	32	33		
1,651		TOTAL LIABILITIES	1,833	1,890	3	1,937	1,986	2,038		
2,615		NET ASSETS	2,716	2,916	7	3,197	3,489	3,801		
		REPRESENTED BY FUNDS EMPLOYED								
2,595		Accumulated Funds	2,696	2,896	7	3,177	3,469	3,781		
20		Reserves	20	20	-	20	20	20		
2,615		TOTAL FUNDS EMPLOYED	2,716	2,916	7	3,197	3,489	3,801		

CIT Solutions	
Cash Flow Statement	
  2007-08			  2007-08	   2008-09		  2009-10	  2010-11	  2011-12		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
9,387		User Charges	11,594	11,912	3	12,236	12,428	12,666		
180		Interest Received	151	167	11	170	172	172		
10		Other Revenue	160	160	-	130	130	131		
9,577		Operating Receipts	11,905	12,239	3	12,536	12,730	12,969		
		Payments								
4,830		Related to Employees	5,890	5,995	2	6,111	6,176	6,263		
3,259		Related to Supplies and Services	4,466	4,609	3	4,734	4,841	4,962		
402		Other	452	460	2	436	446	457		
8,491		Operating Payments	10,808	11,064	2	11,281	11,463	11,682		
1,086		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	1,097	1,175	7	1,255	1,267	1,287		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
111		Purchase of Property, Plant and Equipment	111	111	-	116	86	86		
111		Investing Payments	111	111	-	116	86	86		
-111		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-111	-111	-	-116	-86	-86		
		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		
75		NET INCREASE/(DECREASE) IN CASH HELD	86	164	91	239	281	301		
2,833		CASH AT BEGINNING OF REPORTING PERIOD	2,268	2,354	4	2,518	2,757	3,038		
2,908		CASH AT THE END OF THE REPORTING PERIOD	2,354	2,518	7	2,757	3,038	3,339		

CIT Solutions	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/08			as at 30/6/08	as at 30/6/09	   Var	as at 30/6/10	as at 30/6/11	as at 30/6/12		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
2,499		Opening Balance	2,586	2,716	5	2,916	3,197	3,489		
		Accumulated Funds								
1,016		Operating Result for the Period	1,030	1,100	7	1,181	1,192	1,212		
		Reserves								
1,016		Total Income And Expense For The Period	1,030	1,100	7	1,181	1,192	1,212		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
-900		Dividend Approved	-900	-900	-	-900	-900	-900		
2,615		Closing Balance	2,716	2,916	7	3,197	3,489	3,801		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges - non ACT Government:
–	the increase of $0.804 million in the 2007‑08 estimated outcome from the original budget relates to an increase in training programs provided to Commonwealth Government agencies and a new business development initiative to contract manage new commercial work for Canberra Institute of Technology (CIT) of which CIT Solutions retains a percentage of earnings; and
–	the increase of $0.265 million in the 2008‑09 Budget from the 2007‑08 estimated outcome relates to the on-going development of commercial work for CIT.
•	user charges - ACT Government:  the increase of $1.403 million in the 2007‑08 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 from CIT as a result of an increase in enrolments in 2007 and 2008.
•	interest:  the decrease of $0.029 million in the 2007-08 estimated outcome from the original budget is due to lower cash levels resulting from a combination of higher receivables and higher dividend payment than previous years.
•	other revenue:  the increase of $0.150 million in the 2007‑08 estimated outcome from the original budget is due to receipt of AUSAID funded scholarships for CIT international students and international student recruitment marketing funds to be held on behalf of the Team Canberra consortium (which comprises representatives from each tertiary education institute in the ACT).
•	employee expenses:  
–	the increase of $0.967 million in the 2007‑08 estimated outcome from the original budget relates to wage increases and increased staffing levels to meet the increased demand for training programs and administer the business development initiative; and
–	the increase of $0.093 million in the 2008‑09 Budget from the 2007‑08 estimated outcome relates to employee wage increases.
•	superannuation expenses:  the increase of $0.1 million in the 2007‑08 estimated outcome from the original budget is due to increased staffing levels.
•	supplies and services: 
–	the increase of $1.2 million in the 2007‑08 estimated outcome from the original budget is due to increased payments to CIT for the projects being undertaken through the new business development contracts, an increase in contracted trainers to meet the additional demand for training from government agencies, and increased costs in managing higher numbers of international students; and
–	the increase of $0.144 million in the 2008‑09 Budget from the 2007‑08 estimated outcome relates to the expected increase in activity of the CIT business development initiative.
•	depreciation and amortisation:  the increase of $0.010 million in the 2008‑09 Budget from the 2007-08 estimated outcome reflects leasehold improvements carried out in 2007-08.
Balance Sheet
•	current assets:  the increase of $0.307 million in the 2007‑08 estimated outcome from the original budget reflects the higher level of receivables at year end due to increased training activity, including CIT commercial business projects.
•	property, plant and equipment:  
–	the decrease of $0.024 million in the 2007‑08 estimated outcome from the original budget is due to depreciation of IT equipment and motor vehicles which are being replaced through operating leases; and
–	the increase of $0.047 million in the 2008‑09 Budget from the 2007‑08 estimated outcome relates to the completion of leasehold improvements.
•	total liabilities:  the increase of $0.182 million in the 2007‑08 estimated outcome from the original budget relates to an increased level of payables at year end due to increased training activity together with more revenue held in advance for training programs expected to be partially complete at 30 June 2008.