CIT posted a $21 million deficit in 2024, according to the Annual Report. Photo: Ian Bushnell.
Canberra Institute of Technology has defended its decision to axe its commercial training arm amid questions about its financial management and plummeting staff morale.
Sources close to CIT have told Region that the decision to shut down CIT Solutions after 37 years has left a vacuum in both income and morale across the organisation.
They say there aren’t enough teachers, staffing requests are not being dealt with and staff are worried about CIT’s deteriorating financial position.
One says critical staffing requests, particularly for frontline teaching positions, have been sitting unanswered on the desk of Acting CEO Christine Robinson for over a month.
Another questions how CIT’s operating deficit has blown out to $21.2 million from $14.7 million in 2022 when former CEO Leanne Cover was forced to take leave amid the contracts scandal that eventually cost her job and a corruption finding.
One unnamed faculty head reportedly said students were being turned away and classes were being cancelled.
“The start of term two has been an incredibly stressful time for our teaching staff,” the faculty head said.
“Not only are we working unpaid excessive hours and during leave periods to rebuild our student management system after the ACT Government ICT outage in February, but we have also started term two without enough teachers.
“This is damaging our reputation with industry and the community even more.”
However, a CIT spokesperson denied this was the case, saying the organisation is actively advertising courses and seeking additional students rather than turning them away, but did not answer questions about teacher numbers or staffing requests.
The spokesperson did say there was no hiring freeze in place.
“Despite the after-effects of COVID-19 and a strong local employment market reducing the immediate demand for training, CIT continues to have strong enrolment numbers in many courses and remains committed to providing exceptional support to all students,” the spokesperson said.
The Annual Report shows that in 2024, there were 90,419 students enrolled, 10 per cent below the target of 100,000.
CIT says it decided to move CIT Solutions into CIT and wind up the company so the organisation could focus on its core business. It was also a result of the changing nature of demand for commercial training services in the Canberra region and rising costs.
In 2024, CIT Solutions ran a deficit of $1.5 million. It had 61 core employees and 192 in its flexible workforce, according to the annual report.
CIT did not say what would happen to these employees, or if any courses would be cut.
“CIT will work with CITSOL to deliver on existing contracts and to integrate functions where feasible as we recognise the value these services provide to the Canberra community,” the spokesperson said.
“The wind-up of CIT Solutions will proceed in accordance with all relevant rules and regulations, including those relating to data management and privacy. A joint steering committee is managing the transition, and further information will be provided as decisions are made.”
The 2024 Annual Report shows the $21 million deficit was $3 million more than budgeted. Revenue rose $7.8 million more than budgeted, but expenses blew out by $10.8 million due to higher wages and staff levels and costs associated with the Supreme Court judgement awarding damages for breach of contract to Red Rouge Nominees Pty Ltd, one of the companies involved in the contracts scandal.
“Who is responsible for managing CIT’s finances and why has this been allowed to continue?” asks one source, who also questions the expense of building music and soundproof rehearsal rooms at the new Woden CIT campus for over $8 million with only seven students enrolled.
But CIT says the ACT Government is funding the new CIT and enrolments continue to grow.
“In music and performing arts alone, CIT has more than 120 enrolments and expects that number to grow as we open purpose-built, state-of-the-art spaces that support practical, industry-ready education,” the spokesperson said.
However, no breakdown of numbers for the two subjects was provided.
Staff are also wondering what happened to a CIT Growth Strategy developed by consultancy Nous Group, but the spokesperson said this document is commercial-in-confidence and will not be released publicly.
The sources also question CIT’s ballooning executive which has nearly tripled from five in 2022 to 14 today.
