CANBERRA INSTITUTE OF TECHNOLOGY
Purpose
The Canberra Institute of Technology (CIT) seeks to develop a skilled community by providing skilled graduates, innovative workforce development solutions for businesses and strong vocational education outcomes for students.  CIT is committed to being a leader in sustainable practices.
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 is an inclusive organisation that provides diverse learning opportunities for all individuals, regardless of their backgrounds.
2011‑12 Priorities
Strategic and operational issues to be pursued in 2011‑12 include:
•	promoting quality education and learning by integrating the use of e-learning as a core teaching strategy in CIT and providing improved online services to clients;
•	growing and developing the business by expanding training activities in productivity places, international and other contestable areas;
•	pursuing industry, community and government partnerships by enhancing industry representation on CIT advisory committees and program reference groups and further developing and strengthening partnerships with the school sector and partnering with industry to model sustainability training for the ACT community;
•	expanding organisational capability by developing staff digital literacy skills and skills in sustainable practices across CIT;
•	participating in the implementation of the agreed recommendations of the ACT Tertiary Education Taskforce:  “Learning Capital:  an integrated tertiary education system for the ACT” and the Hawke Report:  “Governing the City State:  One ACT Government – One ACT Public Service”, including the strengthening of relationships with other providers;
•	working on the progression of the Fyshwick Campus Master Plan to ensure the most efficient and effective utilisation of learning assets into the future;
•	continuing the development of the Tuggeranong Flexible Learning Centre through a design phase that will expand the range of learning services and options that CIT provides to the Tuggeranong community; and
•	providing locally based vocational training opportunities at the CIT Gungahlin Learning Centre to meet unmet demand in the Gungahlin community. 
Estimated Employment Level 
2009‑10
Actual Outcome		2010-11
Budget
	2010-11
Est.  Outcome	2011-12
Budget
	
854	Staffing (FTE)1 	866	7911	7612	
Notes:
1.	The decrease of 75 FTE’s in the 2010‑11 estimated outcome from the original budget is mainly due to less casuals being counted on the census date (April 2011) than the previous period (-60) combined with budget strategies implemented to reduce CIT’s expenditure.
2.	The decrease of 30 FTE’s in the 2011‑12 Budget from the estimated outcome is mainly due to the whole‑of‑government savings initiative.  

Strategic Objectives and Indicators
Strategic Objective 1
Student Outcomes 
CIT’s objective is to provide training that meets students needs.
Strategic Objective 1
Student Outcomes Survey
The key strategic indicator used by CIT to measure its success is student employment outcomes measured through the annual Student Outcomes Survey.  By focusing on student’s employment outcomes and their satisfaction with vocational education and training, the Student Outcomes Survey gauges how well CIT serves individuals and the community.
Quality and effectiveness can be measured through comparing student outcomes against national benchmarks, CIT students consistently achieve high levels of employment or are undertaking further study after training.1 The 2010 performance of CIT graduates against national benchmarks for Australian Graduates is highlighted in the chart below.  CIT graduates are shown in the grey and have exceeded the national benchmark on all measures indicating a strong performance across all strategic indicators.

Note:
1.	The most recently reported figures are from 6 December 2010, as published in the National Centre for Vocational Education Research report:  Student Outcomes 2010.

Output Classes 
	Total Cost1	Government Payment for Outputs	
	2010‑11
Est.  Outcome
($’000)	Budget
2011‑12
($’000)	2010‑11
Est.  Outcome
($’000)	Budget
2011‑12
($’000)	
Output Class 1:
Canberra Institute of Technology	112,923	105,244	67,781	67,979	
Output 1.1:  Provision of Vocational Education and Training Services	112,923	105,244	67,781	67,979	
Note:
1.	Total cost includes depreciation and amortisation of $6.238 million in 2010‑11 and $7.679 million in 2011‑12 and the $7.251 million expense impact of the Weston Campus asset transfer to the Department of Territory and Municipal Services Directorate in 2010-11.
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
	2010‑11 
Target	2010‑11
Est.  Outcome	2011‑12 
Target	
Output Class 1:  Canberra Institute of Technology	
Output 1.1:  Provision of Vocational Education and Training Services	
a.	Nominal Hours1	3,795,000	3,879,384	3,820,000	
b.	Achieve key output targets.				
•	Program Enrolments1	19,000	19,500	19,100	
•	Module Pass Rates	75%	77%	75%	
•	Program Completions2	9,000	9,100	9,000	
•	Graduate Satisfaction Rate5	85%	n/a	n/a	
•	Learner Satisfaction Rate3	n/a	n/a	85%	
•	Employer Satisfaction Rate3	80%	91%	80%	
c.	Average Government Payment per Nominal Hour4	$17.74	$17.47	$17.80	
Notes:
1.	Nominal Hours of Training and Program Enrolments are above target for 30 June 2011 due to an increased demand for training from industry and students.  Disciplines of high demand include plumbing, building and construction, accounting, business, nursing, children’s services and community services.
2.	The program completions outcome is above target for 30 June 2011 due to a higher number of enrolments and a continued focus on quality support services for CIT’s students.  In addition, CIT has provided improved pastoral care for students, which has resulted in an increase in program completions and an improvement in module pass rates.  
3.	The 2010 surveys of learner and employer satisfaction showed a satisfaction level of 90 and 91 per cent respectively, reflecting industries’ and students’ positive view of the relevance of CIT training.
4.	The decrease in the Average Profile Funding per Nominal Hour occurred as a result of CIT delivering more Profile nominal hours than were funded by the Government Payment for Outputs (GPO) amount.  The variance indicates that in 2010-11, CIT internally self‑funded the increased demand for training services.  The measures relating to CIT’s performance against all indicators indicate CIT achieved a very sound performance during 2010-11.
5.	The Graduate Satisfaction Rate indicator will be replaced by the Learner Satisfaction indicator.  This is due to the adoption of a National Survey approach rather than a CIT based approach.

Changes to Appropriation
Changes to Appropriation - Controlled						
 	2010-11	2011-12	2012-13	2013-14	2014-15	
Government Payment for Outputs	Est.  Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2010-11 Budget	67,336	67,026	67,456	68,221	68,221	
						
2011-12 Budget Policy Adjustments						
Recurrent Impact of Additional Building Space and Information Technology Investment	- 	1,200 	- 	- 	- 	
Data Population of Building Asset Management System	- 	110 	112 	114 	116 	
Master Plan Fyshwick Trade Skills Centre	- 	180 	- 	- 	- 	
Revised Wage Parameters	100 	(26)	340	346	356	
Savings Initiative	- 	(1,439)	(1,672)	(1,694)	(1,718)	

2011-12 Budget Technical Adjustments						
Revised Indexation Parameters	- 	110 	113 	116 	1,267 	
Revised Commonwealth Grants - TAFE  Fee Waivers Childcare NP	345 	67 	69 	93 	93 	
Revised Commonwealth Grants - National Skills and Workforce Development SPP	- 	113 	183 	210 	490 	
Revised Superannuation Contribution	- 	638 	766 	486 	235 	
						
2011-12 Budget	67,781	67,979	67,367	67,892	69,060	

Changes to Appropriation - Controlled						
 	2010-11	2011-12	2012-13	2013-14	2014-15	
Capital Injections	Est.  Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2010-11 Budget	15,445	5,065	4,843	3,651	3,651	
						
2011-12 Budget Policy Adjustments						
New CIT Learning Centre Tuggeranong – (Design)	- 	700 	- 	- 	- 	
Data Population of Building Asset Management System	- 	250 	- 	- 	- 	
Asbestos Removal and Remediation of Watson Campus	- 	815 	- 	- 	- 	
						
2011-12 Budget Technical Adjustments						
Upgrades for Canberra Raiders Facility at CIT	1,144 	- 	- 	- 	- 	
						
2011-12 Budget Technical Adjustment						
Revised Indexation Parameters	- 	- 	- 	- 	60 	
						
2011-12 Budget	16,589	6,830	4,843	3,651	3,711	

2011-12 Capital Works Program
 	Estimated	Estimated	2011‑12	2012-13	2013-14	Physical 	
	Total	Expenditure	Financing	Financing	Financing	Completion 	
	Cost	Pre 2011‑12				Date  	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
Master Plan Fyshwick Trade Skills Centre (Feasibility)	180	-	180	-	-	Jun 2012	
New CIT Tuggeranong Learning Centre (Design)	700	-	700	-	-	Jun 2012	
Asbestos Removal and Remediation at Watson Campus	815	-	815	-	-	Jun 2012	
							
Total New Capital Works	1,695	-	1,695	-	-		
							
Capital Upgrades							
Health and Safety Improvements	820	-	820				
Energy Management/Educational Improvements	359	-	359				
Building Improvements	1,100	-	1,100				
							
Total Capital Upgrades	2,279	-	2,279				
							
Total New Works	3,974	-	3,974	-	-		
							
Total Capital Works Program	3,974	-	3,974	-	-		

Canberra Institute of Technology
Operating Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
67,336		Government Payment for Outputs	67,781	67,979	..	67,367	67,892	69,060		
18,603		User Charges - Non ACT Government	15,703	16,725	7	17,661	18,586	19,038		
8,153		User Charges - ACT Government	10,662	8,165	-23	8,165	8,165	8,369		
615		Interest	215	247	15	278	310	310		
900		Dividend Revenue	2,000	1,300	-35	800	800	800		
4,836		Other Revenue	4,582	3,836	-16	3,836	3,836	3,836		
35		Resources Received Free of Charge	35	35	-	35	35	35		
100,478		Total Revenue	100,978	98,287	-3	98,142	99,624	101,448		
		Gains								
30		Other Gains	64	64	-	64	64	64		
30		Total Gains	64	64	-	64	64	64		
100,508		Total Income	101,042	98,351	-3	98,206	99,688	101,512		
		Expenses								
58,453		Employee Expenses	58,387	56,863	-3	58,305	59,138	59,912		
7,781		Superannuation Expenses	7,823	7,858	..	7,720	7,548	7,390		
32,375		Supplies and Services	32,853	32,506	-1	30,971	31,760	32,842		
6,238		Depreciation and Amortisation	6,238	7,679	23	7,838	7,839	7,839		
66		Grants and Purchased Services	66	33	-50	0	0	0		
305		Other Expenses	7,556	305	-96	346	346	350		
105,218		Total Ordinary Expenses	112,923	105,244	-7	105,180	106,631	108,333		
-4,710		Operating Result	-11,881	-6,893	42	-6,974	-6,943	-6,821		
-4,710		Total Comprehensive Income	-11,881	-6,893	42	-6,974	-6,943	-6,821		

Canberra Institute of Technology
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12	   Var	as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
5,895		Cash and Cash Equivalents	1,339	2,250	68	3,148	4,070	5,114		
6,351		Receivables	7,230	7,230	-	7,230	7,230	7,230		
65		Other	142	142	-	142	142	142		
12,311		Total Current Assets	8,711	9,622	10	10,520	11,442	12,486		
		Non Current Assets								
20		Investments	20	20	-	20	20	20		
363,131		Property, Plant and Equipment	353,930	366,805	4	365,302	361,424	357,606		
0		Intangibles	0	3,788	#	2,826	1,863	900		
21,900		Capital Works in Progress	26,618	9,636	-64	9,636	10,819	12,002		
385,051		Total Non Current Assets	380,568	380,249	..	377,784	374,126	370,528		
397,362		TOTAL ASSETS	389,279	389,871	..	388,304	385,568	383,014		
		Current Liabilities								
697		Payables	4,536	4,536	-	4,536	4,536	4,536		
75		Interest Bearing Liabilities	75	75	-	75	75	75		
16,275		Employee Benefits	16,279	16,827	3	17,283	17,741	18,199		
3,467		Other	4,595	4,595	-	4,595	4,595	4,595		
20,514		Total Current Liabilities	25,485	26,033	2	26,489	26,947	27,405		
		Non Current Liabilities								
1,818		Employee Benefits	1,678	1,785	6	1,893	1,991	2,089		
1,818		Total Non Current Liabilities	1,678	1,785	6	1,893	1,991	2,089		
22,332		TOTAL LIABILITIES	27,163	27,818	2	28,382	28,938	29,494		
375,030		NET ASSETS	362,116	362,053	..	359,922	356,630	353,520		
		REPRESENTED BY FUNDS EMPLOYED								
132,688		Accumulated Funds	119,774	119,711	..	117,580	114,288	111,178		
242,342		Reserves	242,342	242,342	-	242,342	242,342	242,342		
375,030		TOTAL FUNDS EMPLOYED	362,116	362,053	..	359,922	356,630	353,520		

Canberra Institute of Technology
Cash Flow Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
67,336		Cash from Government for Outputs	67,781	67,979	..	67,367	67,892	69,060		
24,101		User Charges	23,710	24,890	5	25,826	26,751	27,407		
615		Interest Received	215	247	15	278	310	310		
8,139		Other Revenue	7,919	8,173	3	8,173	8,173	8,173		
900		Dividends	2,000	1,300	-35	800	800	800		
101,091		Operating Receipts	101,625	102,589	1	102,444	103,926	105,750		
		Payments								
57,813		Related to Employees	58,279	56,209	-4	57,741	58,582	59,356		
7,781		Related to Superannuation	7,823	7,857	..	7,720	7,548	7,390		
32,443		Related to Supplies and Services	32,921	32,319	-2	30,784	31,573	32,655		
66		Grants and Purchased Services	66	33	-50	0	0	0		
4,505		Other	4,505	4,760	6	4,801	4,801	4,805		
102,608		Operating Payments	103,594	101,178	-2	101,046	102,504	104,206		
-1,517		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	-1,969	1,411	172	1,398	1,422	1,544		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
13,945		Purchase of Property, Plant and Equipment and Capital Works	15,089	7,330	-51	5,343	4,151	4,211		
2,000		Purchase of Land and Intangibles	2,000	0	-100	0	0	0		
15,945		Investing Payments	17,089	7,330	-57	5,343	4,151	4,211		
-15,945		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-17,089	-7,330	57	-5,343	-4,151	-4,211		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
15,445		Capital Injection from Government	16,589	6,830	-59	4,843	3,651	3,711		
15,445		Financing Receipts	16,589	6,830	-59	4,843	3,651	3,711		
15,445		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	16,589	6,830	-59	4,843	3,651	3,711		
-2,017		NET INCREASE/ (DECREASE) IN CASH HELD	-2,469	911	137	898	922	1,044		
7,912		CASH AT BEGINNING OF REPORTING PERIOD	3,808	1,339	-65	2,250	3,148	4,070		
5,895		CASH AT THE END OF THE REPORTING PERIOD	1,339	2,250	68	3,148	4,070	5,114		

Canberra Institute of Technology
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12	   Var	as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
121,953		Opening Accumulated Funds	115,066	119,774	4	119,711	117,580	114,288		
242,342		Opening Asset Revaluation Reserve	242,342	242,342	-	242,342	242,342	242,342		
364,295		Balance at the Start of the Reporting Period	357,408	362,116	1	362,053	359,922	356,630		
		Comprehensive Income								
-4,710		Operating Result for the Period	-11,881	-6,893	42	-6,974	-6,943	-6,821		
-4,710		Total Comprehensive Income	-11,881	-6,893	42	-6,974	-6,943	-6,821		
0		Total Movement In Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
15,445		Capital Injections	16,589	6,830	-59	4,843	3,651	3,711		
15,445		Total Transactions Involving Owners Affecting Accumulated Funds	16,589	6,830	-59	4,843	3,651	3,711		
		Closing Equity								
132,688		Closing Accumulated Funds	119,774	119,711	..	117,580	114,288	111,178		
242,342		Closing Asset Revaluation Reserve	242,342	242,342	-	242,342	242,342	242,342		
375,030		Balance at the End of the Reporting Period	362,116	362,053	..	359,922	356,630	353,520		

Notes to the Budget Statements 
Significant variations are as follows:
Operating Statement 
•	government payment for outputs:  
–	the increase of $0.445 million in the 2010‑11 estimated outcome from the original budget is due to additional funding relating to the 2010‑11 Clerical Collective Agreement ($0.1 million), and from the Commonwealth Government National Partnership Payment (NPP) for Childcare TAFE fee waivers ($0.345 million); and
–	the increase of $0.198 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is mainly due to funding for new initiatives ($1.490 million) offset by the whole‑of‑government savings initiative.
•	user charges — non ACT Government:  
–	the decrease of $2.9 million in the 2010‑11 estimated outcome from the original budget is mainly due to an decrease in international student tuition revenue ($1.7 million) and the reclassification to User Charges – ACT Government of commercial revenue through CIT Solutions ($1.2 million); and
–	the increase of $1.022 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to CIT’s increased expectations for fees and charges.
•	user charges — ACT Government:  
–	the increase of $2.509 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is mainly due to additional revenue for contracted commercial projects ($0.5 million), the reclassification from User Charges – non ACT Government of commercial revenue through CIT Solutions ($1.2 million) and the Productivity Places Program ($0.809 million); and
–	the decrease of $2.497 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is mainly due to the cessation of funding for the Productivity Places Program ($0.809 million), a reduction in funding associated with Grants from ACT Government agencies ($1 million), and an expected reduction in commercial revenue through CIT Solutions ($0.6 million).
•	interest:  the decrease of $0.4 million in the 2010‑11 estimated outcome from the original budget is due to lower cash and investment balances.
•	dividend revenue: 
–	the increase of $1.1 million in the 2010-11 estimated outcome from the original budget is mainly due to a special dividend from CIT Solutions to CIT, to contribute to the cost of the Sustainable Skills Building on Bruce Campus.
–	the increase of $0.4 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to increased dividend returns to be paid to CIT from the investment in CIT Solutions.
•	other revenue:  
–	the decrease of $0.254 million in the 2010‑11 estimated outcome from the original budget relates decreased expectations for Commonwealth funded grants; and
–	the decrease of $0.746 million in the 2011‑12 Budget from the 2010‑11 estimated outcome mainly relates to the cessation of funding received in 2010-11 to deliver the Sustainable Skills Training Centre at Bruce Campus under the Commonwealth Government’s Training Infrastructure Investment For Tomorrow Program.
•	employee expenses:  the decrease of $1.524 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is mainly due to strategies implemented by CIT to reduce expenditure levels and to reduce the over provision of training against government funding for outputs ($1.386 million) and the impact of long service leave liability present value updates ($0.555 million), partially offset by Certified Agreement wage increases ($0.961 million) and additional expenditure associated with the delivery of 2011‑12 Budget Initiatives ($0.083 million).  
•	supplies and services:  
–	the increase of $0.478 million in the 2010‑11 estimated outcome from the original budget is mainly due to the additional costs associated with over-delivery of training against government funding for outputs and the increase in expenditure on ICT and facilities management; and 
–	the decrease of $0.347 million in the 2011‑12 Budget from the 2010‑11 estimated outcome mainly relates to impact of the savings initiative ($0.722 million) off-set by increased costs associated with core delivery activities.
•	depreciation and amortisation:  the increase of $1.441 million in the 2011‑12 Budget from the 2010‑11 estimated outcome primarily results from the increase in CIT’s depreciable asset base.
•	other expenses:  the increase of $7.251 million in the 2010‑11 estimated outcome from the original budget and the decrease of $7.251 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to the transfer of the Weston Campus asset from CIT to the Department of Territory and Municipal Services.
Balance Sheet
•	cash and cash equivalents:  
–	the decrease of $4.556 million in the 2010‑11 estimated outcome from the original budget is due to the impact of increased expenditure associated with the over-delivery of training against government funding for outputs and the increase in expenditure on ICT and facilities management costs; and
–	the increase of $0.911 million in the 2011‑12 Budget from the 2010‑11 estimated outcome reflects the positive impact of strategies implemented by CIT to mitigate current expenditure pressures and to increase cash inflows.
•	receivables:  the increase of $0.879 million in the 2010‑11 estimated outcome from the original budget is mainly due to an increase in services fees revenue and GST credits recoverable from the ATO.
•	other current assets:  the increase of $0.077 million in the 2010‑11 estimated outcome from the original budget is due to higher levels of prepayments for library resources and insurance fees.
•	property, plant and equipment:
–	the decrease of $9.201 million in the 2010‑11 estimated outcome from the original budget is associated with the transfer of the Weston Campus from CIT to the Department of Territory and Municipal Services Directorate ($7.251 million) combined with the timing of capitalising assets and reflects a higher than anticipated level of capital works in progress; and
–	the increase of $12.875 million in the 2011‑12 Budget from the 2010‑11 estimated outcome relates to the completion of projects in the capital works program.
•	capital works in progress:  the increase of $4.718 million in the 2010-11 estimated outcome from the original budget and the decrease of $16.982 million in the 2011‑12 Budget from the 2010‑11 estimated outcome relate to the timing of the capital works program as well as the Commonwealth Government funded Sustainable Skills Training Centre.
•	payables:  the increase of $3.839 million in the 2010‑11 estimated outcome from the original budget is due the timing of payments to ACT Government suppliers.
•	current and non current employee benefits:
–	the decrease of $0.136 million in the 2010‑11 estimated outcome from the original budget relates to the reduction of CIT’s staffing levels; and
–	the increase of $0.655 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to revised wage parameters.
•	other current liabilities:  
–	the increase of $1.128 million in the 2010‑11 estimated outcome from the original budget is due to additional revenue held in advance for Commonwealth Government contracts and student fees.
Cash Flow Statement
Variances in the statement are explained in the notes above.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.