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Chief Finance Officer’s report

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​Financial performance​

The department is building Queensland’s future by giving all children a great start, engaging young people in learning and creating safe, fair and productive workplaces and communities.

In 2020–21, the department achieved an operating surplus of $157.317 million against a total departmental controlled budget of $10.292 billion. Approximately 90% ($140.7 million) of the surplus relates to non-cash accounting entries including asset revaluations, impaired debtor balances, capitalisation of previously expensed assets and salary timing adjustments. Key investments included: continued implementation of the new QCE system for students entering Year 11 from 2019; delivering infrastructure and capital programs such 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; and investment in growth, renewal, maintenance and enhancements, including progressing work under the Cooler Cleaner Schools Program to address the energy needs of the expanded fleet of air conditioners in state schools.

The department’s material financial statement balances reflect our large school land and buildings portfolio across 1254 schools and payment of salaries in excess of 75,000 school, regional and central office full time equivalent (FTE) employees. Supplies and services expenses were dominated by curriculum resources, school utility costs and the maintenance and upkeep of our large asset base.

The continuing COVID-19 health pandemic has not materially impacted the department’s financial results. However, the department has experienced some limited reduction in revenues relating to Education International and local school activities. There have also been limited reductions in costs in certain areas such as travel, although these cost reductions were largely offset by additional costs in areas such as extra cleaning in schools and information communication technology purchases and expenses.

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.

Alison Mohr
A/Assistant Director-General
Finance and Chief Finance Officer​

Table 1: Financial snapshot

Financial snapshot

2016–17

$(000)

2017–18

$(000)

2018–19

$(000)

2019–20

$(000)

2020–21*

$(000)

Controlled revenue
Departmental services revenue8,780,098
8,788,389
8,743,277
9,416,379
​9,482,432
Other revenues
575,439
623,685
693,918
642,091
​681,024
Controlled expenses9,326,720
9,355,315​
9,390,372
10,057,156
​10,006,139
Operating surplus
28,817
56,759
46,823
1,314
157,317
Administered grants (state)848,821
875,602
878,917
917,746
​1,037,219
Capital outlays582,017
609,490
932,954
1,158,950
​1,162,642
Total assets20,338,601
19,600,361
21,141,882
22,496,467
​24,358,030
Total liabilities
1,206,409
901,837
1,059,762
998,135
1,161,644
Net assets/liabilities19,132,192
18,968,524
20,082,120
21,498,332
​23,196,386
2016–17 2017–18 2018–19 2019–202020–21
Employee expenses ($000)6,248,689
6,600,850
7,031,481
7,603,666
​7,691,693
Number of FTE employees at 30 June
69,356
72,341
73,741
73,971
​75,297

Note: due to machinery of government changes: Resources Safety and Health Serious Prosecutions unit was transferred to the department (Office of Industrial Relations Division) from the Department of Natural Resources, Mines and Energy effective 1 July 2020 and Racing transferred to the department from the Department of State Development, Infrastructure, Local Government and Planning effective 1 December 2020.

Source: Department of Education Financial Statements

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.

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Our income—where the funds come from

The department received $10.163 billion for our operations, an increase of $105 million from last year.

Departmental services revenue (appropriation) increased by $66 million. This was largely due to additional funding for state school enrolment growth, transfer of the racing function resulting from machinery of government changes and increased federal funding under the Bilateral Agreement with the Commonwealth Government.

The department also received $4.214 billion in administered funding which is an increase of almost $145 million from 2019–20. 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, 2020–21

Infographic Income 2020-21

  • Appropriation revenure = 93.30%
  • User charges and fees = 3.93%
  • Grant's and other contributions = 2.05%
  • Other revenues = 0.67%
  • Interest = 0.05%

Source: Department of Education Financial Statements

Our expenses—how the funds are spent

The department’s total controlled expenses for 2020–21 were $10.006 billion, a decrease of $51 million from last year. Salaries and wages remain the agency’s major expense component at 77% of total expenses. Salaries and wages expenses have increased by $88 million from 2019–20. This increase is in line with the agency’s commitment to improve student outcomes by providing more teachers in schools to focus on students’ needs.

 

Figure 2: Expenses, 2020–21

Infographic Expenses 2020-21

  • Employee expenses = 76.87%
  • Supplies and services = 13.36%
  • Depreciation and amortisation = 6.07%
  • Grant's and subsides = 2.94%
  • Other expenses = 0.56%
  • Finance/borrowing costs = 0.20%

Note: Expenses, 2020–21 is subject to rounding

Source: Department of Education Financial Statements

 

Figure 3: Average cost per student in state schools, 2020–21

Students with disability:

  • 2016-17: $28,723
  • 2017-18: $29,073
  • 2018-19: $29,244
  • 2019-20: $31,824
  • 2020-21: $31,948

Secondary:

  • 2016-17: $13,599
  • 2017-18: $14,463
  • 2018-19: $14,772
  • 2019-20: $15,303
  • 2020-21: $15,451

Prep and primary:

  • 2016-17: $12,672
  • 2017-18: $13,385
  • 2018-19: $13,805
  • 2019-20: $14,388
  • 2020-21: $14,570

Source: Department of Education Service Delivery Statements (SDS)

Our assets—what we own

The department held assets totaling $24.358 billion at 30 June 2021, an increase of $1.862 billion from 2019–20.

The majority of our assets are in land and buildings. Property, plant and equipment increased by $1.509 billion, mainly due to capital works including the Building Future Schools program, and asset revaluations.

There was an increase in the department’s cash position which is mainly due to a deferred appropriation payment to Queensland Treasury and the timing of payments to creditors.

 

Figure 4: Value of property, plant and equipment

  • 2016-2017 the value is 19,180 million dollars
  • 2017-2018 the value is 18,564 million dollars
  • 2018-2019 the value is 19,919 million dollars
  • 2019-2020 the value is 21,340 million dollars
  • 2020-2021 the value is 22,848 million dollars

Source: Department of Education Financial Statements

Our liabilities—what we owe

The department held liabilities totaling $1.162 billion at 30 June 2021, an increase of $164 million from 2019–20. The majority of the department’s long-term financial liabilities relate to financing transactions emanating from Public–Private Partnerships.​

Last updated 02 November 2021