Chapter One - Overview > Corporate Governance > page 13 of 14
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Corporate Governance

Defence Governance Framework

Senior Committees

Financial Statements Project Board

In the Defence Annual Report 2003-04, the Secretary reported that, due to a number of material account balance uncertainties, he and the Chief Finance Officer could not form the opinion that Defence's 2003-04 Financial Statements gave a true and fair view of Defence's financial position. The subsequent Australian National Audit Office's Audit Report (No.21 - Audits of Financial Statements of Australian Government Entities for the Period Ended 30 June 2004) identified 95 audit findings requiring resolution. Resolution of these issues is a high priority at both whole-of-government and portfolio levels. The Financial Statements Project Board was established in 2003-04 to drive the financial remediation project and to report to the Government on progress. The board was augmented in 2004-05 with the addition of two new members, a Department of Finance and Administration representative and a senior private sector accounting representative.

In 2004-05, members were the Secretary (chair), Chief Finance Officer, Vice Chief of the Defence Force/Chief of Joint Operations, Chief of Navy, Chief of Army, Chief of Air Force, Chief Executive Officer of the Defence Materiel Organisation, Deputy Secretary Corporate Services, Head Defence Personnel Executive, a Department of Finance and Administration representative and a senior partner of the accounting firm, Ernst and Young.

The board held 11 meetings in 2004-05.

Table 1.25 Financial Statements Project Board Attendance
Position and Name Meetings Held Meetings Attended
Secretary (Mr Richard Smith) 11 8/3*
Chief Finance Officer
(Mr Lloyd Bennett until 28 March 2005) 8 8
(Mr Ken Moore - acting from 29 March 2005) 3 3
Vice Chief of the Defence Force/Chief of Joint Operations
(Vice Admiral Russ Shalders)
11 8
Chief of Navy (Vice Admiral Chris Ritchie) 11 6/5*
Chief of Army (Lieutenant General Peter Leahy) 11 7/1*
Chief of Air Force (Air Marshal Angus Houston) 11 5/5*
Chief Executive Officer of the Defence Materiel Organisation
(Dr Stephen Gumley)
11 6
Deputy Secretary Corporate Services (Mr Alan Henderson) 11 9/2*
Head Defence Personnel Executive (Rear Admiral Brian Adams) 11 8/2*
Department of Finance and Administration Representative 6 6
External Accounting Representative 6 6

* Substitute attended in place of member.

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