Financial performance and business review
The department’s net result from transactions for the financial year that ended on 30 June 2022 is a surplus of $484.2 million, compared with a surplus of $610.2 million in 2021. With the inclusion of other economic flows of $190.3 million, the net result for the financial year is a surplus of $674.5 million, compared with a surplus of $660.7 million in 2021.
The decline in revenue primarily reflects the removal of capital asset charge (CAC) funding due its discontinuation from 1 July 2022. This decrease is partially offset by general inflation-related indexation, RATs received free of charge from the Department of Health and revenue for delivery of output initiatives approved from the State Budget.
The department’s decline in expenditure also primarily reflects the discontinuation of the CAC. This decrease is partially offset by higher expenditure incurred for the transition back to onsite learning. This covers additional COVID-19 related expenditure for cleaning, personal protective equipment such as the supply of free RATs to government and non-government schools and higher levels of operational activity in schools. In addition, employee expense increases aligned with the Victorian Government Schools Agreement backpay, enrolment growth and increased statutory on-cost rates also contributed to higher expenditure.
Balance sheet
The department’s net assets as at 30 June 2022 were $37.3 billion, comprising total assets of $40.6 billion and total liabilities of $3.3 billion.
The major assets of the department are schools’ property, plant and equipment. These represent 88% ($35.7 billion) of total assets. In 2022, the value of the department’s property, plant and equipment increased by $6.5 billion, primarily due to the upward revaluations of $5.5 billion ($3.2 billion in buildings and $2.3 billion in land) and the government’s continued investment in schools by acquiring land, building new schools and completing school upgrades.
Liabilities totalling $3.3 billion mainly consist of payables, borrowings and employee benefit provisions. The $46.2 million increase in 2022 is due to the timing of cash payments and is partially offset by movement in employee-related costs, particularly the decrease in long service leave provisions.
Cash flows
The net cash flows from operations are impacted by changes in receivables, payables and provisions, arising from the timing of cash payments and receipts against these items.
Disclosure of grants and transfer payments
Appendix 5 outlines the department’s assistance to education and training service providers and organisations in 2021–22.
Capital projects
The department and its related portfolio entities manage a range of capital projects to deliver government services.
During 2021–22, the department completed several capital projects with a total estimated investment (TEI) of $10 million or greater. The details of these projects are below.
Capital projects with a TEI of $10 million or greater completed during the financial year ended 30 June 2022
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