Chapter Five - Group Contributions > Chief Finance Officer Group > page 2 of 2
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Chief Finance Officer Group

Resources

The Group's total spend for 2004-05 was $324.5m, consisting of $6.9m capital budget and $317.6m operating budget (of which $281.0m was managed on behalf of the portfolio).

As at 30 June 2005, the Chief Finance Officer Group had 265 Australian Public Service staff 1.

Key Achievements

In the Defence Annual Report 2003-04, the Secretary and the Chief Finance Officer reported that they could not form the opinion that Defence's 2003-04 Financial Statements gave a true and fair view of the organisation's financial position. The Australian National Audit Office identified 95 audit findings requiring resolution.

The Group's achievements in 2004-05 related to the remediation of these findings include:

  • the establishment of dedicated program offices in the Chief Finance Group and the Defence Materiel Organisation to drive Defence's remediation and financial controls framework reforms;
  • a financial controls framework for all Groups and a 'three-on-one' reporting process where Group Heads will report to the Secretary, Chief of the Defence Force and the Chief Finance Officer on their progress under the framework;
  • specific accountability for four of the 16 remediation plans; and
  • a series of Senior Leadership Team Finance courses commencing in June 2005 with plans to introduce a series of Executive Level Two courses early in the 2005-06 financial year.

Other key achievements during 2004-05 include the:

  • provision of financial policy and resource advice to the Ministers, Secretary, Chief of the Defence Force and other senior executives in Defence;
  • management of the 2004-05 Budget to optimise Defence's Outcomes, including the management of additional funding for a range of operational commitments;
  • development of the 2005-15 Defence Management and Finance Plan including the resource strategies proposed for the Senior Ministers' Review process;
  • management of the 2005-06 Defence Budget process for consideration by the Government in March 2005;
  • delivery of the second tranche of the $200m Program of Administrative Savings in accordance with the agreed Government schedule;
  • development of the funding and business model to support the Defence Materiel Organisation as a prescribed agency from 1 July 2005, including the separation of budgets and balance sheets;
  • ongoing improvement to Defence's budgeting and reporting systems including implementation of revised whole-of-government reporting arrangements;
  • clearance of the financial aspects of all Cabinet and Ministerial Submissions;
  • improvement of working relationships with the Australian National Audit Office and the Department of Finance and Administration;
  • development of accounting policy relating to audit remediation and the transition to the Australian Equivalent of International Financial Reporting Standards;
  • obtaining of Government approval to upgrade the Defence financial management system (ROMAN) to current software release and improved functionality. JP 2080 Phase 2B-1 was ready for first pass approval in June 2005;
  • establishment of the Budget and Output Reporting Information System as a corporate budgeting and reporting tool with full financial variance reporting available to all Groups and Services; and
  • release of the revised Defence Accounting Policy Manual (Defence Reference Book 48).

  1. Further information on Defence's people can be found in Chapter Three - People. [ back ]
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