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2002-03 Financial Statements

Department of Defence
Notes To And Forming Part Of The Financial Statements
for the year ended 30 June 2003
Note 2: Events Occurring after Reporting Date
Establishment of Defence Materiel Organisation as a prescribed agency

On 18 September 2003, the Government announced that it would establish the Defence Materiel Organisation (DMO) as a prescribed agency to enable greater autonomy to manage and deliver projects. As such, the DMO will remain within the Department of Defence administratively, but be responsible for reporting directly to the Minister for Defence on financial matters associated with acquisition and aspects of logistics. The Secretary of Defence will continue to be responsible for the employment of Australian Public Service staff in the DMO under the Public Service Act 1999. This decision will significantly affect the ongoing structure and financial activities of the Department. The event occurred after balance date and has not been brought to account in the 2002-03 financial statements.