It came as the Education Department launched a major crackdown on corruption within its ranks, abolishing the banker school system that was used to rort $2.5 million of education funds.

The Independent Broad-based Anti-corruption Commission said fresh information had helped investigators "form a more complete picture".

IBAC's public hearings into corruption in the Education Department ended on Tuesday and it is understood the commission will now turn its attention to the failed Ultranet IT project for schools, which was dumped in 2013 after costs blew out to $180 million.

"This investigation is not over. So anyone with information or concerns can still contact us," commission acting chief executive John Lynch said.

Department secretary Gill Callister told the inquiry on Tuesday that $12.5 million remained in banker schools, and the department was trying to claw back funds not tied up in contracts.

She vowed to tighten up rules for school grants, procurement, hospitality and work cars to "ensure all public education funds are fully accounted for".

As part of the crackdown, executives would be rotated through the department to "break down unhealthy networks".

Ms Callister called for more powers to sack allegedly corrupt principals and school staff who currently remain on full-pay for six months.

Earlier this month principals were hit with overseas travel restrictions, and told they could travel interstate and overseas only in "exceptional circumstances".

The investigation has centred on the department's former finance manager, Nino Napoli, the alleged architect of a scheme that diverted millions of dollars away from schools. Huge sums of money were moved to so-called banker schools, where it was misused without scrutiny.

The scam benefited Mr Napoli's relatives and former acting secretary Jeff Rosewarne. Some principals reaped the benefits of interest accrued on the banker school accounts.

The inquiry has claimed 11 scalps, with the department sacking three staff, including Mr Napoli, and suspending eight others.

Under the changes, new whistleblower protections and an integrity division that investigates misconduct will be introduced.

Ms Callister said she would ensure the Auditor-General had better access to internal audits, following revelations officials had been reluctant to hand over audits to the financial watchdog.

"The relationship with the Auditor-General has not been a positive one ... the Auditor-General has been frustrated with the information being late or inaccurate."

Ms Callister said there was a "culture of entitlement" at the department, and too much power had been vested in a "coterie of senior executives", which included Mr Rosewarne, Mr Napoli, former regional director John Allman and former deputy secretary Darrell Fraser.

Audits and reviews – separate from IBAC's investigation – had uncovered "behaviours, cultures and practices that are clearly out of step with community expectations", Ms Callister said. Schools caught up in the alleged fraud would be investigated and training would be beefed up for school leaders and councils.

Education Minister James Merlino said the behaviour exposed in the hearings was an "absolute disgrace". He has asked the Public Sector Commissioner to scrutinise the department's actions.

Mr Merlino praised the commission's work and Ms Callister's reforms.

"I fully intend to hold her and the department to account and make sure that these vital reforms are delivered in full."

Commissioner Stephen O'Bryan said he would table a report on the investigation in Parliament this year.

The overhaul has been welcomed by principals groups, who previously raised concerns about the "punitive" travel restrictions.

Victorian Association of State Secondary Principals president Judy Crowe said she hoped the changes did not handicap schools with stringent processes.

Victorian Primary Principals Association president Gabrielle Leigh said schools would be relieved to hear the banker school system would be abolished, as it brought an "extra load of bureaucracy".

She said improvements to training, and to the system of checks and balances were vital, and the department needed to act urgently to regain trust in the sector.

"IBAC showed principals were taking directions from the centre. We need to be able to respect the centre again. Our trust has been challenged through this process."

Bendigo Senior Secondary College principal Dale Pearce said the response was "very appropriate".

Berwick Lodge Primary School principal Henry Grossek said it had been devastating to see education funds squandered by corrupt officials on lavish lunches, wine and other expenses.

"People are in utter disbelief," he said. "They are shattered and disgusted."

Who's who in the Education Department scandal

Nino Napoli 
Sacked finance manager who stands accused of masterminding an allegedly corrupt ring that redirected about $2.5 million of public school money from public schools to 17 companies owned by his relatives and associates from 2007-14. Money was spent on wine, lunches, office furniture and lavish parties for senior department officials. He also allegedly used taxpayer funds to buy a toupee.

Gus Napoli
Suspended John Farwkner Secondary College principal and brother to Nino Napoli. He paid $96,265 of school funds to two companies owned by relatives, including $66,000 to a company owned by his brother Robert Napoli.

Matthew and Raffaele Napoli
Both stand accused of being paid for work at state schools that they did not do. Raffaele received $120,000 between 2004 and 2011 from a company called On the Ball Personnel.

Carlo and Luigi Squillacioti
Cousins of Nino Napoli and directors of five companies said to have received hundreds of thousands of dollars through false invoicing, for work that was sometimes delivered. Luigi admitted department funds were spent on Nino Napoli's toupe.

Daniel Calleja
The "puppet" in Mr Napoli's scheme and distant cousin of Nino Napoli. Director of Innovating Visuals, which was paid more than $400,000 from 2007-14 for largely non-existent work. Mr Calleja said he was too "scared" of Mr Napoli to question the scheme.

Ralph Barba
Inflated an invoice to the department by more than $9000 to cover the travel and accommodation costs of the wife of former deputy secretary Jeff Rosewarne in 2009.

Darrell Fraser
An internal review into Mr Fraser's corporate credit card showed he spent $12,000 a month on  dubious expenses, including expensive meals. He took an executive job with a company in 2011, after he was instrumental in giving that company an education department contract for failed schools IT project, Ultranet.

John Allman
Former regional director sacked after he admitted destroying financial documents showing he used hundreds of thousands of dollars from Silverton Primary School's account for discretionary spending.

Jeff Rosewarne
Former acting secretary of the Education Department spent public school funds on expensive wine, coffee machines, office furniture, lavish parties and overseas travel.

Principals:
Michael Guilliri
Former Essendon North Primary and  Keilor Heights Primary School principal, who admitted writing a fake letter requesting $30,000 of Department funds to pay Mr Napoli's son for work he never did. Coached Mr Napoli's sons to tell IBAC a cover story.

Gordon Pratt
Former principal of non-banker school Brighton Primary School, who paid $5099 from the school's credit card on two coffee machines and authorised a $4824 school invoice payment at Mr Rosewarne's request.

Peter Paul
Suspended Chandler Park Primary School principal, who spent banker school funds on overseas trips for staff and up to $30,000 of wine for Nino Napoli, bought from Mr Paul's wine merchant son.

Whistleblowers:
Stephen Brown
Former executive director of literacy and numeracy and pegged as future department secretary instigated an internal audit of the banker school system. He left the department in 2010, suspecting senior officials were misappropriating public funds.

Jenny Zahara
Brought in to Nino Napoli's branch to manage his spending, and raised concerns with Mr Napoli about money that had not been allocated to a program for students with disabilities.

Gail Hart
Former Education Department corporate services manager who was sidelined and made redundant after she raised concerns about her bosses' behaviour.

Stewart Leslie
Former chair of the department's audit committee, who repeatedly raised concerns about a lack of accountability within the department and told Mr Rosewarne the department should act urgently on recommendations made in an audit into banker schools.

Eleanor Griffiths
Former manager, who believes she was made redundant from the  Department in 2012 with two colleagues who also "asked questions". Ms Griffiths developed a reputation as a "spoilsport" after objecting to extravagant staff retreats in Lorne and San Remo, where alcohol flowed freely.