CIT SOLUTIONS PTY LTD
Purpose
CIT Solutions Pty Ltd (CIT Solutions) is a company owned by the Canberra Institute of Technology (CIT), and which operates under 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:  
–	the design and development of customised systems, programs and resources as well as accreditation services; and
–	training and skills needs analyses.
•	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.
2011‑12 Priorities
Strategic and operational issues to be pursued in 2011‑12 include:
•	implementing the ‘Putting People First’ strategy to support our people to build the capability, diversity and flexibility of our workforce;
•	continuing to grow the core business by strengthening working relationships with key clients;
•	accessing a wider range of funding sources for training places offered to clients;
•	enhancing innovation in courses, administration and marketing of company products;
•	building company wide capability by promoting other business lines to existing clients;  and
•	enhancing communications with clients.  

Business and Corporate Strategies
The strategies to be employed to achieve the 2011‑12 priorities are to:
•	implement the 2011-14 CIT Solutions People Plan, which identifies initiatives aimed at enhancing work outputs, retaining quality people and building the desired workplace culture.  These initiatives for 2011‑12 include the engagement of a dedicated Human Resources manager, publication of a Capability Framework of our people, review of all employment policies and introduction of  a series of leadership seminars for our people; 
•	optimise the use of a client relationship database in order to establish and maintain an internal culture of sharing intelligence and collaboration to better meet the needs of clients;
•	investigate eligibility of prospective students for government funded training places;
•	research new learning and development trends and apply ‘good practice’ models in order to develop innovative training programs to grow CIT Solutions’ capability;
•	enhance the flexibility of products and services through appropriate use of e‑learning and online administration;
•	promote successful projects as an opportunity for marketing company-wide products to existing clients;
•	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;
•	enhance the company’s website to communicate the company’s success and capability to potential clients; and
•	support becoming members and associates of professional bodies to build communication networks with potential clients.

Estimated Employment Levels
2009‑10
Actual Outcome		2010-11
Budget
	2010-11
Est.  Outcome	2011-12
Budget
	
85	Staffing (FTE)1	83	871	87	
Note:
1.	The increase of four FTEs in the 2010‑11 estimated outcome from the original budget is due to an increase in casual staffing required to deliver an increased number of international language training courses.

CIT Solutions Pty Ltd
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								
12,338		User Charges - Non ACT Government	13,919	14,183	2	14,488	14,727	14,975		
4,069		User Charges - ACT Government	4,044	4,085	1	4,128	4,182	4,262		
126		Interest	136	135	-1	136	136	136		
130		Other Revenue	130	131	1	133	135	137		
16,663		Total Revenue	18,229	18,534	2	18,885	19,180	19,510		
		Gains								
0		Total Gains	0	0	-	0	0	0		
16,663		Total Income	18,229	18,534	2	18,885	19,180	19,510		
		Expenses								
6,994		Employee Expenses	7,879	8,008	2	8,152	8,233	8,328		
614		Superannuation Expenses	729	689	-5	704	712	720		
7,010		Supplies and Services	7,585	7,729	2	7,878	8,046	8,233		
127		Depreciation and Amortisation	176	193	10	200	192	164		
647		Other Expenses	537	548	2	559	571	588		
15,392		Total Ordinary Expenses	16,906	17,167	2	17,493	17,754	18,033		
1,271		Operating Result	1,323	1,367	3	1,392	1,426	1,477		
1,271		Total Comprehensive Income	1,323	1,367	3	1,392	1,426	1,477		

CIT Solutions
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								
3,432		Cash and Cash Equivalents	847	998	18	1,674	2,375	3,099		
2,256		Receivables	3,659	3,710	1	3,761	3,812	3,863		
0		Investments	1,000	1,000	-	1,000	1,000	1,000		
95		Other	101	101	-	101	101	101		
5,783		Total Current Assets	5,607	5,809	4	6,536	7,288	8,063		
		Non Current Assets								
391		Property, Plant and Equipment	450	399	-11	337	277	231		
33		Intangibles	58	34	-41	14	0	0		
424		Total Non Current Assets	508	433	-15	351	277	231		
6,207		TOTAL ASSETS	6,115	6,242	2	6,887	7,565	8,294		
		Current Liabilities								
561		Payables	660	711	8	762	813	864		
737		Employee Benefits	822	829	1	829	829	829		
1,117		Other	1,572	1,572	-	1,572	1,572	1,572		
2,415		Total Current Liabilities	3,054	3,112	2	3,163	3,214	3,265		
		Non Current Liabilities								
121		Employee Benefits	174	176	1	178	179	180		
23		Other Provisions	0	0	-	0	0	0		
0		Other	33	33	-	33	33	33		
144		Total Non Current Liabilities	207	209	1	211	212	213		
2,559		TOTAL LIABILITIES	3,261	3,321	2	3,374	3,426	3,478		
3,648		NET ASSETS	2,854	2,921	2	3,513	4,139	4,816		
		REPRESENTED BY FUNDS EMPLOYED								
3,628		Accumulated Funds	2,834	2,901	2	3,493	4,119	4,796		
20		Reserves	20	20	-	20	20	20		
3,648		TOTAL FUNDS EMPLOYED	2,854	2,921	2	3,513	4,139	4,816		

CIT Solutions
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								
16,437		User Charges	18,013	18,252	1	18,521	18,811	19,138		
126		Interest Received	136	135	-1	136	136	136		
130		Other Revenue	130	131	1	133	135	137		
16,693		Operating Receipts	18,279	18,518	1	18,790	19,082	19,411		
		Payments								
6,782		Related to Employees	7,698	7,749	1	7,829	7,909	8,003		
608		Related to Superannuation	728	680	-7	687	694	702		
7,056		Related to Supplies and Services	7,481	7,625	2	7,774	7,942	8,129		
642		Other	682	693	2	704	716	733		
15,088		Operating Payments	16,589	16,747	1	16,994	17,261	17,567		
1,605		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	1,690	1,771	5	1,796	1,821	1,844		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
320		Purchase of Property, Plant and Equipment and Capital Works	415	320	-23	320	320	320		
320		Investing Payments	415	320	-23	320	320	320		
-320		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-415	-320	23	-320	-320	-320		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
900		Dividends to Government	2,000	1,300	-35	800	800	800		
900		Financing Payments	2,000	1,300	-35	800	800	800		
-900		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	-2,000	-1,300	35	-800	-800	-800		
385		NET INCREASE/ (DECREASE) IN CASH HELD	-725	151	121	676	701	724		
3,047		CASH AT BEGINNING OF REPORTING PERIOD	1,572	847	-46	998	1,674	2,375		
3,432		CASH AT THE END OF THE REPORTING PERIOD	847	998	18	1,674	2,375	3,099		
CIT Solutions
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								
3,257		Opening Accumulated Funds	3,511	2,834	-19	2,901	3,493	4,119		
20		Opening Other Reserve	20	20	-	20	20	20		
3,277		Balance at the Start of the Reporting Period	3,531	2,854	-19	2,921	3,513	4,139		
		Comprehensive Income								
1,271		Operating Result for the Period	1,323	1,367	3	1,392	1,426	1,477		
1,271		Total Comprehensive Income	1,323	1,367	3	1,392	1,426	1,477		
		Transactions Involving Owners Affecting Accumulated Funds								
-900		Dividend Approved	-2,000	-1,300	35	-800	-800	-800		
-900		Total Transactions Involving Owners Affecting Accumulated Funds	-2,000	-1,300	35	-800	-800	-800		
		Closing Equity								
3,628		Closing Accumulated Funds	2,834	2,901	2	3,493	4,119	4,796		
20		Closing Other Reserve	20	20	-	20	20	20		
3,648		Balance at the End of the Reporting Period	2,854	2,921	2	3,513	4,139	4,816		

Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges — non ACT Government:  the increase of $1.581 million in the 2010‑11 estimated outcome from the original budget and the increase of $0.264 million in the 2011‑12 Budget from the 2010‑11 estimated outcome relates to an increase in training provided to Commonwealth Government agencies under contracts for international language training and public sector vocational programs.
•	interest:  the increase of $0.010 million in the 2010‑11 estimated outcome from the original budget is due to higher interest rates applying to bank deposits compared to the previous year.
•	employee expenses:  the increase of $0.885 million in the 2010‑11 estimated outcome from the original budget relates to increased staffing levels in the international language training centre and public sector training unit to meet increased demand.
•	superannuation expenses:  the increase of $0.115 million in the 2010‑11 estimated outcome from the original budget is due to an increase in staffing levels.
•	supplies and services:  
–	the increase of $0.575 million in the 2010‑11 estimated outcome from the original budget is due to support for increased language training ($0.07  million), higher contractor expenses for an increase in public sector training programs ($0.350 million) and leasing of new premises to conduct language training to the Commonwealth Government  ($0.150 million); and
–	the increase of $0.144 million in the 2011‑12 Budget from the 2010‑11 estimated outcome mainly relates to an increase in contractor expenses ($0.064 million) and operating expenses ($0.042 million) through maintenance and support of additional training rooms.
•	depreciation and amortisation:  the increase of $0.049 million in the 2010‑11 estimated outcome from the original budget is due to leasehold improvements to additional rooms leased for training purposes during 2010‑11.
•	other expenses:  the decrease of $0.110 million in the 2010‑11 estimated outcome from the original budget is due to lower commission payments to international agents for recruitment of CIT international students.
Balance Sheet
•	cash and cash equivalents:  the decrease of $2.585 million in the 2010‑11 estimated outcome from the original budget is due to the payment of a special dividend of $1.1 million to CIT in 2010‑11 to contribute to the cost of the Sustainable Skills Building on Bruce Campus.  The increase of $0.151 million in the 2011‑12 Budget from the 2010‑11 estimated outcome reflects retained cash surpluses.
•	Current receivables:  the increase of $1.403 million in the 2010‑11 estimated outcome from the original budget results from a greater number of training programs commencing mid-year (June/July).
•	property, plant and equipment:  the increase of $0.059 million in the 2010‑11 estimated outcome from the original budget is due to leasehold improvements to additional rooms leased for training purposes in 2010-11.  
•	The decrease of $0.051 million in the 2011-12 Budget from the 2010‑11 estimated outcome is due to accumulated depreciation on leasehold improvements.
•	intangibles:   the increase of $0.025 million in the 2010‑11 estimated outcome from the original budget is due to further development of an on-line cultural awareness program used for language training purposes.  
•	The reduction of $0.024 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to the increased accumulated amortisation with no new acquisitions.  
•	payables:  the increase of $0.099 million in the 2010‑11 estimated outcome from the original budget mainly relates to a higher GST liability resulting from an increase in the value of receivables being invoiced in June.
•	employee benefits current:  the increase of $0.085 million in the 2010‑11 estimated outcome from the original budget is due to an increase in the employee long service leave liability from having additional staff and wage increases.
•	other current liabilities:  the increase of $0.455 million in the 2010‑11 estimated outcome from the original budget is due to an increase in the number of training programs being delivered at year end which are paid in advance.  
•	employee benefits non-current:  the increase of $0.053 million in the 2010‑11 estimated outcome from the original budget is due to an increase in the average years of service attained by employees.
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.