Chief Finance Officer’s report Page ContentThe department achieved an operating surplus of $56.8 million in 2017-18, mainly due to the treatment of school-based activities. Schools operate on a calendar (academic) year rather than a financial year basis. This surplus is against a total departmental controlled budget of $9.479 billion after taking into account the impact of the machinery-of-government changes from 1 January 2018, which transferred the training and skills functions to the Department of Employment, Small Business and Training and the Office of Industrial Relations from Queensland Treasury. System developments are being finalised to facilitate these structural adjustments. Key investments in 2017-18 included the roll out of the final tranche of the extra teachers and additional guidance officers election commitments, 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 funding for the construction of new halls, upgrade existing halls and land acquisitions for new schools.During 2017-18 the School Budget Solution was deployed to all Queensland State Schools. Further, the Promotional Positions Classification Review was progressed, including wide ranging consultation with internal and external stakeholders.The first stage of the Leading the Management of the School project was also completed including an extensive internal and cross-jurisdictional scan of current resources available to Queensland state school principals.Management of the Six Full Cohorts 2020 Ready program of works continued throughout 2017-18 with Queensland State School Resourcing with oversight and governance of this critical program of work.Additional resourcing initiatives for science, technology, engineering and mathematics (STEM) expertise in Queensland state primary schools and increased information technology (IT) support officers in Queensland state schools was successfully implemented.Following amendments to the Australian Education Act 2013 in 2017, Queensland is required to enter an agreement with the Federal Government to secure federal funding for schooling. An interim one-year agreement for 2018 was reached in December 2017, with negotiations ongoing towards a longer term agreement.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 57 of the Financial and Performance Management Standard 2009. 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 Table 1: Financial snapshot 2013-14$(000)2014-15$(000)2015-16$(000)2016-17$(000)2017-18*$(000) Controlled revenue Departmental services revenue7,604,8267,910,1798,350,3908,780,0988,788,389 Other revenues755,721522,252559,808575,439623,685Controlled expenses8,360,4448,355,6008,873,6579,326,7209,355,315Operating surplus/(deficit)10376,83136,54128,81756,759Administered grants (state)773,613794,329851,555848,821875,602Capital outlays532,099344,322420,454582,017609,490Total assets18,450,30017,665,41719,217,75220,338,60119,600,361Total liabilities1,078,339896,7621,041,7971,206,409901,837Net assets/(liabilities)17,371,96116,768,65518,175,95519,132,19218,698,524 2013-142014-152015-162016-172017-18Employee expenses ($000)5,934,2535,544,2655,931,0876,248,6896,600,850Number of employees at 30 June (FTE)67,95265,70668,10369,35672,341 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.