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Chief Finance Officer’s report

​​​​​​​​​​​​​​​​​​​​​The 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 FCPA

Assistant 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 revenue7,910,1798,350,3908,780,0988,788,3898,743,277
Other revenues522,252559,808575,439623,685693,918
Controlled Expenses8,355,6008,873,6579,326,7209,355,3159,390,372
Operating surplus/deficit76,83136,54128,81756,75946,823
Administered grants (state)794,329851,555848,821875,602878,917
Capital outlays344,322420,454582,017609,490932,954
Total assets17,665,41719,217,75220,338,60119,600,36121,141,882
Total liabilities896,7621,041,7971,206,409901,8371,059,762
Net assets/liabilities16,768,65518,175,95519,132,19218,698,52420,082,120
2014-15 2015-16 2016-17 2017-18 2018-19
Employee expenses ($000)5,544,2655,931,0876,248,6896,600,8507,031,481
Number of employees at 30 June (FTE)65,70668,10369,35672,34173,741

Note: 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 Education

For 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.

Our income—where the funds come from

We received $9.437 billion for our operations, an increase of $25 million from last year, largely due to higher grants and contributions, and mainly from WorkCover because of the inclusion of the Office of Industrial Relations for the full financial year and changes in departmental services revenue.

Departmental services revenue decreased by $45 million. This was largely due to removal of funding for Training and Skills functions which were transferred to the Department of Employment, Small Business and Training effective 1 January 2018, which was offset by additional funding for state school enrolment growth, enterprise bargaining and increased Australian Government funding under the National Education Reforms—Students First program.

The department also received $3.644 billion in administered funding, an increase of $221 million from 2017–18. Administered funding includes Commonwealth funding transfers to non-government schools, as well as state grants to statutory authorities, peak bodies for non-state schools and other entities, enabling them to deliver agreed services to Queenslanders.

Figure 1: Income, 2018-19

Note: Income, 2018–19 is subject to rounding

Source: Department of Education

Infographic Income 2018-19

  • Appropriation revenure = 92.6%
  • User charges = 4.7%
  • Grant's and other contributions = 1.9%
  • Interest = 0.1%
  • Other revenues = 0.6%
  • Total = 100%

Our expenses—how the funds are spent

The department’s total controlled expenses for 2018–19 were $9.390 billion, an increase of $35 million from last year. Salaries and wages remain the agency’s major expense component at 75 per cent of total expenses. This is in line with the agency’s commitment to improved student outcomes by supporting teachers to focus on student needs through providing more teachers in schools.

Figure 2: Expenses, 2018-19

Source: Department of Education

Infographic Expenses 2018-19

  • Employee expenses = 75%
  • Supplies and services = 15.0%
  • Grant's and subsides = 3%
  • Depreciation and amortisation = 5%
  • Finance/borrowing costs = 0.3%
  • Other expenses = 1%
  • Total = 100%

Figure 3: Average cost per student in state schools, 2018-19

Source: Department of Education

Our assets—what we own

The department held assets totalling $21.142 billion at 30 June 2019, an increase of $1.542 billion from 2017–18.

The majority of our assets are in land and buildings. Property, plant and equipment increased by $1.354 billion, mainly due to capital works including for the Building Future Schools and 2020 Ready (6 full cohorts) programs, and asset revaluations.

There was also an increase in the department’s cash position mainly due to timing of payments for capital works, and increases in school bank accounts.

Figure 4: Value of property, plant and equipment

 

Source: Department of Education

Graph - value of property, plant and equipment

  • 2013 - 2014 the value is between 17-18 million dollars
  • 2014 - 2015 the value is between 16-17 million dollars
  • 2015 - 2016 the value is between 18-19 million dollars
  • 2016 - 2017 the value is between 19-20 million dollars
  • 2017 - 2018 the value is between 18-19 million dollars
  • 2018 - 2019 the value is between 19-20 million dollars

Our liabilities—what we owe

The department held liabilities totalling $1.060 billion at 30 June 2019, an increase of $158 million from 2017–18. This increase is mainly due to timing of payments for capital works.

Leased assets and corresponding finance lease liabilities for the Aspire South East Queensland Schools, and the Queensland Schools—Plenary programs are held by the department and form the majority of our financial liabilities.

Licence
Creative Commons Attribution 3.0 Australia (CC BY 3.0) (https://creativecommons.org/licenses/by/3.0/au/ )
Last updated
29 November 2019