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Annual Report 2014–15

Volume 1, Part 2 : Performance

Programme 1.13
Chief Finance Officer

The Chief Finance Officer, Mr Phillip Prior, PSM, is responsible for giving strategic financial advice and information to the ministers, the Secretary, the CDF and Defence Senior Leaders. The Group provides a whole-of-Defence focus for planning, management, and monitoring of key deliverables to the Government, including Defence outputs, and for reporting on them.

The Chief Finance Officer Group is responsible for Defence financial control, governance and assurance and manages the Defence budget and financial policies, principles and practices in accordance with the Public Governance, Performance and Accountability Act 2013.

The Group drives Defence’s financial management and improvement programmes through standardised financial management approaches and a shared services model. The Defence Finance Shared Services Programme continues to evolve to accommodate the changing environment.

In 2014–15, Defence’s Portfolio Budget Statements, Portfolio Additional Estimates Statements and financial statements were prepared and submitted within reporting deadlines. All whole-of-government reporting requirements were achieved. The Defence Accountable Authority Instructions were maintained and updated to reflect changes to financial policy and the forthcoming integration of the DMO into the Department of Defence.

Highlights of the Group’s achievements during the year included:

  • coordination of the annual budget-cycle process and production of the 2015–16 Portfolio Budget Statements and 2014–15 Portfolio Additional Estimates Statements
  • removal of the DMO as a ‘listed entity’ from Schedule 1 of the Public Governance, Performance and Accountability Rule 2014, and subsequent consolidation of DMO finances, delegations and Accountable Authority Instructions within Defence
  • engagement of external providers to develop independent cost and schedule assurance of the Defence budget in support of the Defence White Paper
  • development of a 10-year funding model based on a fully costed future force structure
  • further development of the shared financial services capability across Defence to enable business improvement and increased efficiencies
  • delivery of the Government’s deregulation agenda within Defence
  • continued evaluation and improvement of processes and systems
  • continued improvement of Defence’s financial statements.
Table 3.32: Programme 1.13 deliverables

Deliverable

Status

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Key

Met

• • •

Substantially met

• •

Partially met

• •

Not met

• • •

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Defence financial statements

Status Met • • •

Defence Portfolio Budget Statements

Status Met • • •

Defence Portfolio Additional Estimates Statements

Status Met • • •

Defence Accountable Authority Instructions

Status Met • • •

Monthly/annual input to whole-of-government reporting

Status Met • • •

Table 3.33: Programme 1.13 key performance indicators

Key performance indicator

Status

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Key

Met

• • •

Substantially met

• •

Partially met

• •

Not met

• • •

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Provide timely and high-quality financial advice to the Minister for Defence, the Secretary and the CDF.

Status Met • • •

Produce Defence’s budget, financial statements and the annual Defence Management and Finance Plan within agreed statutory timeframes.

Status Met • • •

Maintain unqualified financial statements.

Status Met • • •