CANBERRA INSTITUTE OF TECHNOLOGY
Objectives
The Canberra Institute of Technology (CIT) seeks to train a workforce with skills appropriate to the current and forecast needs of industry in the ACT and region, and with enhanced career prospects and quality of life.
CIT is committed to creating a learning community providing practical, relevant and affordable post‑secondary education and training where students and staff can reach their full potential for education, work and life.
2007‑08 Priorities
Strategic and operational educational issues to be pursued in 2007‑08 include: 
•	developing innovative learning opportunities and enhancing industry relationships to improve responsiveness and developing joint strategies with industry that address skill shortages and meet industry training requirements;
•	improving client service systems including recognition of prior learning for existing and potential students;
•	improving the CIT’s teaching and learning environment to ensure that students and staff have access to high quality facilities and e-Learning resources in an environment that is conducive to learning;
•	minimising the CIT’s impact on the environment;
•	working with schools and colleges to develop alternative pathways for students and to develop a Year 12 vocational college;
•	developing leadership and management skills, including business management, marketing and contract negotiation skills and maintaining staff expertise and professional currency; and
•	developing staff so that they can work with private education providers and higher education institutions to strengthen partnerships.
Business and Corporate Strategies
The Institute will employ the following strategies to achieve its objectives, priorities and efficiency measures, and to manage business and financial risks:
•	subject to the Canberra Institute of Technology Act 1987, operate as a customer service oriented entity along business-like lines;
•	use benchmarking to operate at least as efficiently as alternative service providers and to provide quality, value for money services in all aspects of the CIT’s operations;
•	use financial practices which satisfy the requirements of the Financial Management Act 1996, including the associated Accounting Policy Papers modelled on the requirements of Accounting Standards, and which fairly present the Institute’s financial position and operational and cashflow results for planning and reporting purposes;
•	adopt a high standard of operating practices to safeguard the environment and health and safety of staff; and
•	provide a productive and satisfying working environment for staff, and a commitment to high standards of human resource management based on the principles of equal employment opportunity. 
Estimated Employment Level
	2006-07
Est.  Outcome	2007‑08
Budget	
Staffing (FTE)	743	728	

Output Class
	Total Cost1	Government Payment for Outputs	
	2006‑07
Est. Outcome
$’000	2007‑08
Budget
$’000	2006‑07
Est. Outcome
$’000	2007‑08
Budget
$’000	
Output Class 1: Canberra Institute of Technology	90,944	90,913	60,243	61,072	
Output 1.1: Provision of Vocational Education and Training Services	90,944	90,913	60,243	61,072	
Note:
1.	Total cost includes depreciation of $3.805 million in 2006-07 and $3.855 million in 2007‑08.
Output Description
Provision of places in publicly funded programs at the CIT, consistent with training needs identified in the CIT’s Statement of Intent. 

Strategic Indicators
Strategic Indicator 1 
Student Outcomes 
One of the key strategic indicators used by the CIT to measure its success is students’ employment outcomes which are measured as part of 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, industry 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 26 May 2006, as published in the National Centre for Vocational Education Research report: Student Outcomes 2006.

Accountability Indicators
	2006-07
Targets	2006-07
Est. Outcome	2007‑08 
Target	
Output Class 1: Canberra Institute of Technology	
Output 1.1: Provision of Vocational Education and Training Services	
				
a.	Student contact hours delivered by the Canberra Institute of Technology1	3,739,907 	3,707,885	3,735,000	
				
b.	Publicly funded program enrolments2	15,000	17,926	17,500	
				
c.	Module pass rates	75%	78%	75%	
				
d.	Program completions by students	5,000	5,209	5,000	
				
e.	Graduate satisfaction with programs3	83%	89%	85%	
				
f.	Employer satisfaction with Canberra Institute of Technology trained employees3	80%	85%	80%	
g.	Average Government payment per annual curriculum hour	$16.14	$16.25	$16.35	
				
Notes:
1.	The 2007‑08 target of 3,735,000 includes an amount of 75,000 student contact hours delivered through a recognition of prior learning process.  The addition of this figure is consistent with the national VET sector standard of counting all recognition of prior learning by assessment in a manner equivalent to other modes of training delivery.
2.	The 2006‑07 outcome and 2007‑08 target have increased from the 2006‑07 target due to the continuing trend of students undertaking shorter duration programs.
3.	The greater than target outcome in 2006‑07 relates mainly to continuous improvement measures introduced by CIT in response to student and employer feedback of services provided by the Institute.

Changes to Appropriation 
Changes to Appropriation - Departmental						
 	2006-07	2007-08	2008-09	2009-10	2010-11	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2006-07 Budget	60,359	60,635	62,260	63,285	63,285	
						
2007-08 Budget Policy Adjustments 						
Wage Outcome	(116)	489	849	1,055	1,062	
						
2007-08 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	47	49	50	1,119	
Shared Services Centre SLA Adjustment	 - 	215	282	324	328	
Decreased Notional Superannuation Contribution Rates	 - 	(314)	(358)	(235)	(122)	
						
2007-08 Budget	60,243	61,072	63,082	64,479	65,672	

Changes to Appropriation - Departmental	 	 	 	 	 	
	2006-07	2007-08	2008-09	2009-10	2010-11	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2006-07 Budget	5,170	5,170	5,170	5,170	5,170	
						
2007-08 Budget Policy Adjustments 						
Weston Campus Relocation - Feasibility Study and Design	 - 	1,000	 - 	 - 	 - 	
						
2007-08 Budget Technical Adjustments						
Capital Upgrades Indexation	 - 	55	106	159	213	
						
2007-08 Budget	5,170	6,225	5,276	5,329	5,383	

2007‑08 Capital Works Program
							
 	Estimated	Estimated	2007‑08	2008-09	2009-10	Expected 	
	Total	Expenditure	Financing	Financing	Financing	Completion 	
	Cost	Pre 2007‑08				Date  	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
Capital Upgrades	  2,055	-	  2,055	  			
Weston Campus Relocation - Feasibility Study and Design	1,000	-	1,000			28 Feb 2008	
							
Total New Capital Works	  3,055	-	  3,055	  	 	 	

Total Departmental Capital Works	  3,055   	     	  3,055   		 	 	

Canberra Institute of Technology	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
60,359		Government Payment for Outputs	60,243	61,072	1	63,082	64,479	65,672		
13,082		User Charges - Non ACT Government	13,082	13,701	5	14,429	14,765	15,134		
6,996		User Charges - ACT Government	6,996	7,146	2	7,299	7,481	7,668		
273		Interest	273	270	-1	254	249	249		
400		Dividend Revenue	900	900	-	900	900	900		
3,415		Other Revenue	5,014	3,564	-29	3,697	3,813	3,906		
35		Resources Received free of charge	35	35	-	35	35	35		
84,560		Total Revenue	86,543	86,688	..	89,696	91,722	93,564		
		Gains								
30		Other Gains	30	30	-	30	30	30		
30		Total Gains	30	30	-	30	30	30		
84,590		Total Income	86,573	86,718	..	89,726	91,752	93,594		
		Expenses								
48,748		Employee Expenses	50,652	49,545	-2	51,090	51,558	52,220		
9,650		Superannuation Expenses	9,673	9,539	-1	9,883	10,168	10,415		
25,519		Supplies and Services	24,280	26,411	9	27,155	27,863	28,556		
3,805		Depreciation and Amortisation	3,805	3,855	1	3,906	3,909	3,913		
1,382		Other Expenses	2,534	1,563	-38	1,590	1,630	1,671		
89,104		Total Ordinary Expenses	90,944	90,913	..	93,624	95,128	96,775		
-4,514		Operating Result	-4,371	-4,195	4	-3,898	-3,376	-3,181		

Canberra Institute of Technology	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
7,440		Cash and Cash Equivalents	4,829	5,044	4	5,409	5,959	6,707		
4,787		Receivables	5,766	5,766	-	5,766	5,766	5,766		
55		Other	332	332	-	332	332	332		
12,282		Total Current Assets	10,927	11,142	2	11,507	12,057	12,805		
		Non Current Assets								
20		Investments	20	20	-	20	20	20		
127,220		Property, Plant and Equipment	126,000	128,190	2	131,272	133,222	135,222		
472		Intangibles	568	278	-51	96	96	96		
2,954		Capital Works in Progress	3,246	4,246	31	3,246	3,246	3,246		
130,666		Total Non Current Assets	129,834	132,734	2	134,634	136,584	138,584		
142,948		TOTAL ASSETS	140,761	143,876	2	146,141	148,641	151,389		
		Current Liabilities								
1,435		Payables	1,741	1,741	-	1,741	1,741	1,741		
6,219		Employee Benefits	12,450	13,290	7	13,918	14,424	14,930		
6,607		Other	6,530	6,530	-	6,530	6,530	6,530		
14,261		Total Current Liabilities	20,721	21,561	4	22,189	22,695	23,201		
		Non Current Liabilities								
6,877		Employee Benefits	209	454	117	713	754	794		
6,877		Total Non Current Liabilities	209	454	117	713	754	794		
21,138		TOTAL LIABILITIES	20,930	22,015	5	22,902	23,449	23,995		
121,810		NET ASSETS	119,831	121,861	2	123,239	125,192	127,394		
		REPRESENTED BY FUNDS EMPLOYED								
120,920		Accumulated Funds	118,941	120,971	2	122,349	124,302	126,504		
890		Reserves	890	890	-	890	890	890		
121,810		TOTAL FUNDS EMPLOYED	119,831	121,861	2	123,239	125,192	127,394		

Canberra Institute of Technology	
Cash Flow Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
60,359		Cash from Government for Outputs	60,243	61,072	1	63,082	64,479	65,672		
20,078		User Charges	20,078	20,847	4	21,728	22,246	22,802		
273		Interest Received	273	270	-1	254	249	249		
7,228		Other Revenue	8,827	7,556	-14	7,792	8,011	8,209		
400		Dividends	900	900	-	900	900	900		
88,338		Operating Receipts	90,321	90,645	..	93,756	95,885	97,832		
		Payments								
57,603		Related to Employees	59,219	57,999	-2	60,086	61,179	62,089		
25,484		Related to Supplies and Services	24,397	26,532	9	27,280	27,992	28,689		
5,195		Other	6,195	5,399	-13	5,525	5,664	5,806		
88,282		Operating Payments	89,811	89,930	..	92,891	94,835	96,584		
56		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	510	715	40	865	1,050	1,248		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
454		Proceeds from Sale/Maturities of Investments	3,500	0	-100	0	0	0		
454		Investing Receipts	3,500	0	-100	0	0	0		
		Payments								
5,670		Purchase of Property, Plant and Equipment	5,670	6,725	19	5,776	5,829	5,883		
5,670		Investing Payments	5,670	6,725	19	5,776	5,829	5,883		
-5,216		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-2,170	-6,725	-210	-5,776	-5,829	-5,883		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
5,170		Capital Injection from Government	5,170	6,225	20	5,276	5,329	5,383		
5,170		Financing Receipts	5,170	6,225	20	5,276	5,329	5,383		
5,170		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	5,170	6,225	20	5,276	5,329	5,383		
10		NET INCREASE/(DECREASE) IN CASH HELD	3,510	215	-94	365	550	748		
2,712		CASH AT BEGINNING OF REPORTING PERIOD	1,319	4,829	266	5,044	5,409	5,959		
2,722		CASH AT THE END OF THE REPORTING PERIOD	4,829	5,044	4	5,409	5,959	6,707		

Canberra Institute of Technology	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
120,060		Opening Balance	117,938	119,831	2	121,861	123,239	125,192		
		Accumulated Funds								
-4,514		Operating Result for the Period	-4,371	-4,195	4	-3,898	-3,376	-3,181		
		Reserves								
-4,514		Total Income And Expense For The Period	-4,371	-4,195	4	-3,898	-3,376	-3,181		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
5,170		Capital Injections	5,170	6,225	20	5,276	5,329	5,383		
1,094		Inc/Dec in Net Assets due to Admin Restructure	1,094	0	-100	0	0	0		
121,810		Closing Balance	119,831	121,861	2	123,239	125,192	127,394		
Notes to the Budget Statements 
Significant variations are as follows:
Operating Statement 
•	government payment for outputs:  the increase of $0.829 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mostly due to:
–	supplementation for wage increases ($1.223 million);
–	indexation ($0.917 million); and
–	Shared Services Centre Service Level Agreement (SLA) adjustment to cover increased wage costs ($0.215 million). 
partially offset by:
–	decreased notional superannuation contribution rate ($0.314 million); and
–	the full year effect of 2006‑07 Budget savings ($1.342 million).
•	user charges – non ACT Government:  the increase of $0.619 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to an increase in student tuition and services fee revenue.
•	user charges – ACT Government:  the increase of $0.150 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to increased tendering activity associated with the apprenticeships and traineeships.
•	dividend revenue:  the increase of $0.5 million in the 2006‑07 estimated outcome from the original budget is due to increased profitability by CIT Solutions Pty Ltd.
•	other revenue:  the increase of $1.599 million in the 2006‑07 estimated outcome from the original budget, and the decrease of $1.450 million in the 2007‑08 Budget from the 2006‑07 estimated outcome, relate to voluntary redundancy supplementation from Government in 2006‑07 ($0.580 million), and one off funding in 2006‑07 for the management of the National Communication and Leadership program ($1.0 million).
•	employee expenses:  
–	the increase of $1.904 million in the 2006‑07 estimated outcome from the original budget is due to wage increases ($0.208 million), increased voluntary redundancy costs ($0.660 million), and delays in the transfer of staff to Shared Services in 2006‑07 ($1.036 million); and
–	the decrease of $1.107 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is largely due to the full year effect of 2006‑07 Budget savings and the transfer of staff to Shared Services in 2006‑07 ($2.146 million) and increased voluntary redundancies in 2006‑07 ($0.660 million), offset by the full year effect of wage increases ($1.043 million) and indexation ($0.560 million).
•	superannuation expenses:  the decrease of $0.134 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to decreased notional superannuation contribution rates.
•	supplies and services:  
–	the decrease of $1.239 million in the 2006‑07 estimated outcome from the original budget is mainly due to delays in the transfer of staff to Shared Services in 2006‑07 leading to a reduction in the estimated amount of fees paid to Shared Services; and 
–	the increase of $2.131 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is largely due to the full year effect of fees paid to Shared Services in 2006‑07 ($2.117 million), and indexation ($0.650 million), partially offset by the full year effect of 2006‑07 Budget savings ($0.853 million).
•	other expenses:  the increase of $1.152 million in the 2006‑07 estimated outcome from the original budget and the decrease of $0.971 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to one-off costs associated with managing the National Communication and Leadership program in 2006‑07.
Balance Sheet
•	current assets:  the decrease of $1.355 million in the 2006‑07 estimated outcome from the original budget and the increase of $0.215 million in the 2007‑08 Budget from the 2006‑07 estimated outcome, relate to variations in revenue received in advance for training programs and national projects and the payment of long service leave entitlements for redundant and retiring staff.
•	non-current assets:
–	the decrease of $0.832 million in the 2006‑07 estimated outcome from the original budget relates to delays in CIT’s capital works program; and
–	the increase of $2.9m in the 2007‑08 Budget from the 2006‑07 estimated outcome relates to the upgrade of infrastructure under the capital works program and capital funding for the Weston Campus feasibility study and forward design.
•	total liabilities: 
–	the decrease of $0.208 million in the 2006‑07 estimated outcome from the original budget relates mainly to reduced employee entitlements as staff have retired or been made redundant; and
–	the increase of $1.085 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to increases in staff pay rates under the CIT’s collective agreements flowing through to increased benefits owing to employees. 
Cash Flow Statement
•	proceeds from sale/maturities of investments:  the increase of $3.046 million in the 2006‑07 estimated outcome from the original budget and the $3.5 million decrease in the 2007‑08 Budget from the 2006‑07 estimated outcome represent a change in accounting practices for cash equivalents.  The 2007‑08 Budget for investments has been reduced to a ‘nil’ balance.