Chapter One - Overview > Corporate Governance > page 9 of 14
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Corporate Governance

Defence Governance Framework

Senior Committees

Defence Audit Committee

Under Section 46 of the Financial Management and Accountability Act 1997, the Secretary must establish and maintain an audit committee, with the functions and responsibilities required by the Finance Minister's Orders. The Defence Audit Committee is the only senior Defence Committee that has its authority located in law. The Defence Audit Committee is responsible for reviewing the preparation and audit of the Defence financial statements and providing advice to the Secretary on the adequacy of the statements and the accounting policies, procedures and systems involved. The committee approves internal audit plans and strategies, and reviews internal and external audit reports. It also monitors and provides advice to the Secretary on Defence's risk management policies and practices, ethics awareness activities and fraud control plans.

In 2004-05, the committee consisted of two independent, external members (chair and deputy chair) and three internal Defence members chosen as senior Defence officers, not as representatives of their substantive positions. The Chief Finance Officer and Inspector-General attended as advisers and representatives of the Australian National Audit Office attended as observers.

The committee held 11 scheduled business meetings in 2004-05 and one extraordinary meeting.

Table 1.21 Defence Audit Committee Attendance
Members Meetings Held Meetings Attended*
Mr Paul McGrath 12 12
Mr Will Laurie 12 11
Mr Norm Gray (Defence member) 12 9
Commodore Clint Thomas (Defence member) 12 11
Mr Ian McKenzie (Defence member) 12 12

* As members of the committee are personally appointed by the Secretary and membership is not linked to substantive positions, substitutes are not permitted.  These Defence members hold a rank of ADF 1-star or SES Band 2.

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