Chief Finance Officer’s report Page ContentThe department achieved an operating surplus of $46.8 million in 2018–19, mainly due to the treatment of school-based activities. Schools operate on a calendar (academic) year rather than financial year basis. This surplus is against a total departmental controlled budget of $9.421 billion and includes the full-year impact of the machinery-of-government changes from 1 January 2018, which transferred training and skills functions to the Department of Employment, Small Business and Training and the Office of Industrial Relations from Queensland Treasury to the Department of Education.Key investments in 2018–19 included the continued implementation of findings from the Review of School Administrative and Support Staff, implementation of the new senior assessment and tertiary entrance systems for students entering Year 11 from 2019, as well as investments under the Building Future Schools Fund to address enrolment growth pressures in state schools and the need for additional state schools across Queensland.During 2018–19, the Promotional Positions Classification Review was completed, including wide-ranging consultation with internal and external stakeholders.Finance Branch is also leading a Review of School Staffing Economy to clarify the policy, processes and procedures in place to support the long-standing arrangements for school leaders to access all available staffing resources and to purchase additional resources as needed.Management of the 6 full cohorts 2020 Ready program of works continued throughout 2018–19, with some $250 million in investment to ensure the impact of the first year of 6 full student cohorts in 2020 is adequately managed.Following amendments to the Australian Education Act 2013 in 2017, Queensland signed a Bilateral Agreement with the Australian Government to secure federal funding for schooling in December 2018. This agreement sets out actions to implement reform directions, as well as funding obligations and reporting requirements.In accordance with the requirements of section 77(2)(b) of the Financial Accountability Act 2009, I have provided the Director-General with a statement that the financial internal controls of the department are operating efficiently, effectively and economically in conformance with section 54 of the Financial and Performance Management Standard 2019. As Chief Finance Officer, I have therefore fulfilled the minimum responsibilities as required by section 77(1)(b) of the Financial Accountability Act 2009. Duncan Anson FCPAAssistant Director-General, Finance Chief Finance Officer Financial snapshot Financial snapshot 2014-15 $(000) 2015-16 $(000) 2016-17 $(000) 2017-18 $(000) 2018-2019 $(000) Controlled revenue Departmental services revenue7,910,1798,350,3908,780,0988,788,3898,743,277Other revenues522,252559,808575,439623,685693,918Controlled Expenses8,355,6008,873,6579,326,7209,355,3159,390,372Operating surplus/deficit76,83136,54128,81756,75946,823Administered grants (state)794,329851,555848,821875,602878,917Capital outlays344,322420,454582,017609,490932,954Total assets17,665,41719,217,75220,338,60119,600,36121,141,882Total liabilities896,7621,041,7971,206,409901,8371,059,762Net assets/liabilities16,768,65518,175,95519,132,19218,698,52420,082,120 2014-15 2015-16 2016-17 2017-18 2018-19Employee expenses ($000)5,544,2655,931,0876,248,6896,600,8507,031,481Number of employees at 30 June (FTE)65,70668,10369,35672,34173,741Note: Due to machinery-of-government changes, Training and Skills functions transferred to the Department of Employment, Small Business and Training effective 1 January 2018, and Industrial Relations was transferred in to the department from Queensland Treasury.Source: Department of EducationFor a comprehensive set of financial statements covering all aspects of the department's activities, see the financial statements section of this annual report. No totals have been adjusted for commercial-in-confidence requirements.