Details of Repayment to TEC Finalised

11th February 2005

Details of Repayment to TEC Finalised

CPIT has confirmed details of how it intends to meet its voluntary obligation to repay $3.47 million to the Tertiary Education Commission (TEC) in relation to the Cool programme.

“As a result of the report that found 25% of those in the programme had not progressed further than enrolling, CPIT made a voluntary decision to give back 25% of the public funding received,” says CEO John Scott.

“CPIT did this because it was the right thing to do, and because we believe our community expected us to do so.

“The TEC has accepted CPIT’s proposal that it would meet the $3.47 million volunteered by providing that value of education free of charge to the TEC, and meeting all associated costs of delivery.

“In accounting terms, what was $3.47 million in income in the 2004 year is being converted into a liability that will be worked off over a period of three years.

“The amount of foregone revenue is less than 2% of CPIT’s projected total annual revenue for 2005. The immediate net effect will be to reduce CPIT’s projected surplus for 2004,” says Mr Scott.

ENDS

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