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 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.
2007-08 Priorities
Strategic and operational issues to be pursued in 2007‑08 include:
•	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 our capacity to do business by providing high quality facilities; and
•	supporting our 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
	2006-07
Est.  Outcome	2007-08
Budget	
Staffing (FTE)	64	64	

CIT Solutions	
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								
7,320		User Charges - Non ACT Government	8,008	8,274	3	8,507	8,768	8,911		
1,804		User Charges - ACT Government	1,059	1,113	5	1,162	1,212	1,247		
151		Interest	126	180	43	196	199	201		
0		Other Revenue	10	10	-	10	10	10		
9,275		Total Revenue	9,203	9,577	4	9,875	10,189	10,369		
		Gains								
0		Total Gains	0	0	-	0	0	0		
9,275		Total Income	9,203	9,577	4	9,875	10,189	10,369		
		Expenses								
4,034		Employee Expenses	4,316	4,474	4	4,567	4,659	4,716		
618		Superannuation Expenses	351	369	5	378	389	397		
3,440		Supplies and Services	3,139	3,259	4	3,370	3,484	3,578		
82		Depreciation and Amortisation	50	57	14	64	74	74		
395		Other Expenses	395	402	2	408	414	424		
8,569		Total Ordinary Expenses	8,251	8,561	4	8,787	9,020	9,189		
706		Operating Result	952	1,016	7	1,088	1,169	1,180		

CIT Solutions	
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								
3,076		Cash and Cash Equivalents	2,833	2,908	3	3,060	3,287	3,556		
912		Receivables	1,075	1,075	-	1,075	1,075	1,075		
97		Other	82	82	-	82	82	82		
4,085		Total Current Assets	3,990	4,065	2	4,217	4,444	4,713		
		Non Current Assets								
248		Property, Plant and Equipment	144	201	40	248	290	302		
0		Intangibles	3	0	-100	0	0	0		
248		Total Non Current Assets	147	201	37	248	290	302		
4,333		TOTAL ASSETS	4,137	4,266	3	4,465	4,734	5,015		
		Current Liabilities								
727		Payables	447	447	-	447	447	447		
368		Employee Benefits	505	516	2	524	524	524		
436		Other	650	650	-	650	650	650		
1,531		Total Current Liabilities	1,602	1,613	1	1,621	1,621	1,621		
		Non Current Liabilities								
183		Employee Benefits	36	38	6	41	41	42		
183		Total Non Current Liabilities	36	38	6	41	41	42		
1,714		TOTAL LIABILITIES	1,638	1,651	1	1,662	1,662	1,663		
2,619		NET ASSETS	2,499	2,615	5	2,803	3,072	3,352		
		REPRESENTED BY FUNDS EMPLOYED								
2,599		Accumulated Funds	2,479	2,595	5	2,783	3,052	3,332		
20		Reserves	20	20	-	20	20	20		
2,619		TOTAL FUNDS EMPLOYED	2,499	2,615	5	2,803	3,072	3,352		

CIT Solutions	
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								
9,124		User Charges	8,640	9,387	9	9,669	9,980	10,158		
151		Interest Received	126	180	43	196	199	201		
0		Other Revenue	10	10	-	10	10	10		
9,275		Operating Receipts	8,776	9,577	9	9,875	10,189	10,369		
		Payments								
4,624		Related to Employees	4,514	4,830	7	4,934	5,048	5,112		
3,440		Related to Supplies and Services	3,133	3,259	4	3,370	3,484	3,578		
395		Other	395	402	2	408	414	424		
8,459		Operating Payments	8,042	8,491	6	8,712	8,946	9,114		
816		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	734	1,086	48	1,163	1,243	1,255		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
294		Proceeds from Sale/Maturities of Investments	2,094	0	-100	0	0	0		
294		Investing Receipts	2,094	0	-100	0	0	0		
		Payments								
176		Purchase of Property, Plant and Equipment	28	111	296	111	116	86		
645		Purchase of Investments	94	0	-100	0	0	0		
821		Investing Payments	122	111	-9	111	116	86		
-527		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	1,972	-111	-106	-111	-116	-86		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
400		Dividends to Government	900	900	-	900	900	900		
400		Financing Payments	900	900	-	900	900	900		
-400		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-900	-900	-	-900	-900	-900		
-111		NET INCREASE/(DECREASE) IN CASH HELD	1,806	75	-96	152	227	269		
1,068		CASH AT BEGINNING OF REPORTING PERIOD	1,027	2,833	176	2,908	3,060	3,287		
957		CASH AT THE END OF THE REPORTING PERIOD	2,833	2,908	3	3,060	3,287	3,556		

CIT Solutions	
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		
2,313		Opening Balance	2,447	2,499	2	2,615	2,803	3,072		
		Accumulated Funds								
706		Operating Result for the Period	952	1,016	7	1,088	1,169	1,180		
		Reserves								
706		Total Income And Expense For The Period	952	1,016	7	1,088	1,169	1,180		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
-400		Dividend Approved	-900	-900	-	-900	-900	-900		
2,619		Closing Balance	2,499	2,615	5	2,803	3,072	3,352		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges – non ACT Government:  the increase of $0.688 million in the 2006‑07 estimated outcome from the original budget and the increase of $0.266 million in the 2007‑08 Budget from the 2006‑07 estimated outcome relate to an increase in training programs provided to Australian Government agencies.
•	user charges – ACT Government:  the decrease of $0.745 million in the 2006‑07 estimated outcome from the original budget relates to a reduction in revenue from ACT Government agencies.
•	employee expenses:  
–	the increase of $0.282 million in the 2006‑07 estimated outcome from the original budget relates to the reclassification of salary sacrifice superannuation contributions from superannuation expenses and some additional recruitment of staff to manage new programs; and 
–	the increase of $0.158 million in the 2007‑08 Budget from the 2006‑07 estimated outcome relates to wage increases for employees.
•	superannuation expenses:  the decrease of $0.267 million in the 2006‑07 estimated outcome from the original budget is due to the superannuation expense being over‑estimated in the original budget by the inclusion of salary sacrificed superannuation contributions.
•	supplies and services: 
–	the decrease of $0.301 million in the 2006‑07 estimated outcome from the original budget is due to lower expenditure on company overheads; and
–	the increase of $0.120 million in the 2007‑08 Budget from the 2006‑07 estimated outcome relates to projected increases in the cost of contracts for training consultants and office services.
•	depreciation and amortisation:  the decrease of $0.032 million in the 2006‑07 estimated outcome from the original budget reflects delays in the replacement of some assets and an increase in leased IT equipment.
Balance Sheet
•	current assets:  the decrease of $0.095 million in the 2006‑07 estimated outcome from the original budget reflects the lower level of cash held due to a higher than originally budgeted dividend payment to CIT, partially offset by the company increasing its estimate of account receivables at the end of financial year.
•	property, plant and equipment:  
–	the decrease of $0.104 million in the 2006-07 estimated outcome from the original budget relates to an increase in leased IT equipment and delayed replacement of some assets; and
–	the increase of $0.057 million in the 2007‑08 Budget from the 2006‑07 estimated outcome relates to the purchase of equipment due for replacement.
•	total liabilities:  the decrease of $0.076 million in the 2006‑07 estimated outcome from the original budget relates to a reduction in the level of payables through improved processing ($0.280 million) offset by an increase in the level of revenue held in advance for training programs expected to be partially complete as at 30 June 2007 ($0.214 million).
Cash Flow Statement
•	purchase of property plant and equipment:
–	the decrease of $0.148 million in the 2006‑07 estimated outcome from the original budget relates to delays in the replacement of some equipment; and
–	the increase of $0.083 million in the 2007‑08 Budget from the 2006‑07 estimated outcome provides for the purchase of equipment due for replacement. 
•	investing receipts and payments:  the variations in the 2006‑07 estimated outcome from the original budget and the 2007‑08 Budget from the 2006‑07 estimated outcome primarily represent a change in accounting practices that reclassifies the company’s short-term bank bills to cash.  The 2007‑08 Budget for investments has been reduced to a ‘nil’ balance.
•	dividends to Government:  the increase of $0.5 million in the 2006‑07 estimated outcome from the original budget reflects the managing board’s decision to increase the payment based on improved operating performance.