Accountability Arrangements
Corporate Governance
Senior Committees
Overview
There were a number of achievements relating to corporate
and individual accountability across Defence during the year. In August 2002,
to elevate and strengthen independent review and scrutiny of investment and
capability issues, a two-phased committee process was introduced. The previous
Defence Capability and Investment Committee was renamed the Defence Capability
Committee. Chaired by the Vice Chief of the Defence Force, this committee
considers and develops options for current and future capability. A new, more
senior Defence Capability and Investment Committee, chaired by the Secretary,
was formed to focus particularly on investment and to ensure consistency with
Defence's strategic priorities and resourcing strategy.
In the same month, the Defence Committee revised its
governance principles, clarifying its role and the accountability of its members.
The other senior Defence committees subsequently revised their governance
principles to align with those of the Defence Committee. Consequently, business
rules for all the senior committees have been streamlined and improved.
In September 2002, charters and organisational performance agreements were
signed by the Secretary and the Chief of the Defence Force with each Group
Head and Service Chief. These documents provide clear direction on the results
expected from each individual and guidance to achieve those results. The underlying
principles for the Charters were drawn from the Ministerial Directive to the
Secretary and Chief of the Defence Force, which was signed by Minister Hill
in November 2001. With the change of Secretary in November 2002, a new directive
was drawn up and signed by the Minister in May 2003. That Directive provides
clear guidance on the Government's expectations for Defence, and the manner
in which results should be achieved.
The charters and organisational performance agreements will be revised to
reflect the changing operating environment and to align with the May 2003
Ministerial Directive and the 2004-14 Defence Management and Finance Plan.
In January 2003, the Defence Audit Committee conducted the first evaluation
of its performance. Acting on the results of the evaluation, the committee
is now actively addressing perceived areas for improvement.
In June 2003, the inaugural meeting of the Defence Occupational Health and
Safety Committee was held. The committee, chaired by Head Defence Personnel
Executive, is responsible for reporting to the Defence Committee on the development
and the implementation of the Defence Occupational Health and Safety Strategic
Plan and for assessing Defence's performance against it.
The senior Defence committees are one of the key elements of Defence's governance
framework. There were eight senior Defence committees in 2002-03:
Defence Committee
In 2002-03, members were the Secretary (chair), Chief of the Defence Force,
Under Secretary Defence Materiel, Vice Chief of the Defence Force, Chief of
Navy, Chief of Army, Chief of Air Force, Chief Defence Scientist, Chief Finance
Officer, Deputy Secretary Corporate Services, Deputy Secretary Intelligence
and Security, Deputy Secretary Strategic Policy, Chief Information Officer
and Head Defence Personnel Executive.
The Defence Committee's role is to make decisions
that assist in achieving the results specified in the Ministerial Directive
to the Secretary and the Chief of the Defence Force. These include successful
joint conduct of military operations, the Chief of the Defence Force retaining
sole command authority; provision of capability to enable our armed forces
to defend Australia and its national interests; timely and responsive advice;
proper stewardship of people and of financial and other resources, including
operating within budgeted financial performance; and appropriate evaluation
and reporting documents, including an annual Defence Management and Finance
Plan, the Defence Capability Plan, and periodic strategic reviews and white
paper reports, incorporating the above.
The Defence Committee gives direction and assesses performance in delivering
those results, with a focus on the longer term. The Defence Committee held
ten scheduled business meetings in 2002-03 (July, August, September, October,
November, December, February, April, May and June) and three extraordinary
meetings (July and March), including a restricted membership meeting (April).
Attendance was as follows:
| Position and Name |
Meetings Held |
Meetings Attended |
| Secretary |
13 |
|
| (Dr Allan Hawke - until 18 October 2002) |
5 |
3/2(1) |
| (Mr Richard Smith - from 18 November 2002) |
8 |
8 |
| Chief of the Defence Force (General Peter Cosgrove) |
13 |
11/2(1) |
| Under Secretary Defence Materiel (Mr Michael Roche) |
13 |
9/4(1) |
| Vice Chief of the Defence Force (Vice Admiral Russ Shalders) |
13 |
13 |
| Chief of Navy (Vice Admiral Chris Ritchie) |
13 |
13 |
| Chief of Army (Lieutenant General Peter Leahy) |
13 |
9/4(1) |
| Chief of Air Force (Air Marshal Angus Houston) |
13 |
12/1(1) |
| Chief Defence Scientist (Dr Ian Chessell) |
12 |
10/2(1) |
| Chief Finance Officer (Mr Lloyd Bennett) |
13 |
13 |
| Deputy Secretary Corporate Services (Mr Alan Henderson) |
13 |
13 |
| Deputy Secretary Intelligence and Security (Mr Ron Bonighton) |
12 |
|
| (acting until 5 August 2002) |
1 |
1 |
| (confirmed from 6 August 2002) |
11 |
11 |
| Deputy Secretary Strategic Policy (Mr Shane Carmody) |
13 |
11/2(1) |
| Chief Information Officer (Mr Patrick Hannan) |
12 |
12 |
| Head Defence Personnel Executive |
12 |
|
| (Air Commodore Roxley McLennan - acting from 16 July to
25 August 2002) |
2 |
2 |
| (Rear Admiral Brian Adams - from 26 August 2002) |
10 |
9/1(1) |
Note
- Substitute attended in place of member.
Chiefs of Service Committee
In 2002-03, members were the Chief of the Defence Force (chair), Secretary,
Vice Chief of the Defence Force, Chief of Navy, Chief of Army and Chief of
Air Force. Deputy Secretary Strategic Policy is a permanently invited member.
The Chiefs of Service Committee provides military advice to the Chief of
the Defence Force to assist him in discharging his responsibilities in command
of the Defence Force and as principal military adviser to the Government.
The Chiefs of Service Committee met 16 times in 2002-03 (twice in July, August,
September, October, twice in November, twice in December, February, March,
twice in April, May and twice in June). Attendance was as follows:
| Position and Name |
Meetings Held |
Meetings Attended |
| Chief of the Defence Force (General Peter Cosgrove) |
16 |
16 |
| Secretary |
16 |
|
| (Dr Allan Hawke - until 18 October 2002) |
6 |
4/2(1) |
| (Mr Richard Smith - from 18 November 2002) |
10 |
10 |
| Vice Chief of the Defence Force (Vice Admiral Russ Shalders) |
16 |
14/2(1) |
| Chief of Navy (Vice Admiral Chris Ritchie) |
16 |
13/3(1) |
| Chief of Army (Lieutenant General Peter Leahy) |
16 |
12/4(1) |
| Chief of Air Force (Air Marshal Angus Houston) |
16 |
15/1(1) |
| Deputy Secretary Strategic Policy (Mr Shane Carmody) |
16 |
12/4(1) |
Note
- Substitute attended in place of member.
Defence Capability and Investment
Committee
This Committee was established in August 2002. In 2002-03, members were the
Secretary (chair), Chief of the Defence Force, Under Secretary Defence Materiel,
Chief of Navy, Chief of Army and Chief of Air Force.
Vice Chief of the Defence Force, Chief Defence Scientist, Chief Finance Officer
and Deputy Secretary Strategic Policy attended as advisers.
The Committee's role is to strengthen independent review by seeking to ensure
that resourcing, including capital investment and operating costs, is consistent
with Defence's strategic priorities and resourcing strategy. It focuses on:
- the overall shape of capability/balance of resource allocation/ten year
Defence Plan;
- force structure, including Service plans;
- the balance between the different organisational performance agreements;
- force disposition;
- the broad new major investment program;
- operating/capital mix; and
- other issues with a significant impact on capability.
The Defence Capability and Investment Committee met 14 times in 2002-03 (August,
three times in September, October, November, January, February, March, April,
three times in May and June). Attendance was as follows:
| Position and Name |
Meetings Held |
Meetings Attended |
| Secretary |
14 |
|
| (Dr Allan Hawke - until 18 October 2002) |
5 |
2/2(1) |
| (Mr Richard Smith - from 18 November 2002) |
9 |
9 |
| Chief of the Defence Force (General Peter Cosgrove) |
14 |
13/1(1) |
| Under Secretary Defence Materiel (Mr Michael Roche) |
14 |
12/2(1) |
| Chief of Navy (Vice Admiral Chris Ritchie) |
14 |
14 |
| Chief of Army (Lieutenant General Peter Leahy) |
14 |
12/2(1) |
| Chief of Air Force (Air Marshal Angus Houston) |
14 |
12/2(1) |
| Vice Chief of the Defence Force (Vice Admiral Russ Shalders) |
14 |
11/3(1) |
| Chief Defence Scientist (Dr Ian Chessell) |
10 |
8/1(1) |
| Chief Finance Officer (Mr Lloyd Bennett) |
14 |
14 |
| Deputy Secretary Strategic Policy (Mr Shane Carmody) |
14 |
11/2(1) |
Note
- Substitute attended in place of member/adviser.
Defence Capability Committee
In 2002-03, members were the Vice Chief of the Defence Force (chair), Deputy
Secretary Strategic Policy (deputy chair), Under Secretary Defence Materiel
representative, Chief Defence Scientist, Chief Finance Officer, Deputy Chief
of Navy, Deputy Chief of Army, Deputy Chief of Air Force, First Assistant
Secretary Capability, Investment and Resources, Head Capability Systems, Head
Defence Personnel Executive and Deputy Chief Information Officer.
Deputy Secretary Intelligence and Security, Deputy Secretary Corporate Services
representative and Department of Finance and Administration representative
attend as permanently invited members.
The role of the Committee is to consider and develop options for current
and future capability. It focuses on individual major capital investment projects
to ensure consistency with the Defence White Paper and the Defence Capability
Plan; a whole-of-life and whole-of-capability perspective; an acceptable return
on capital expenditure; there are no unmanageable strategic, technical, schedule
or financial risks; and rigorous, independent scrutiny of capability, cost,
schedule and risk.
The Defence Capability Committee held 15 scheduled meetings in 2002-03 (July,
August, twice in September, October, November, twice in December, January,
February, March, twice in April, May and June), and two restricted membership
meetings (November and May). Attendance was as follows:
| Position and Name |
Meetings Held |
Meetings Attended |
| Vice Chief of the Defence Force (Vice Admiral Russ Shalders) |
17 |
17 |
| Deputy Secretary Strategic Policy (Mr Shane Carmody) |
16 |
7/8(1) |
| Under Secretary Defence Materiel representatives: |
16 |
|
| Rear Admiral Kevin Scarce |
2 |
2 |
| Dr Ian Williams |
13 |
13 |
| Ms Shireane McKinnie |
1 |
1 |
| Chief Defence Scientist (Dr Ian Chessell) |
15 |
11/4(1) |
| Chief Finance Officer (Mr Lloyd Bennett) |
16 |
15/1(1) |
Deputy Secretary Corporate Services representative
(Mr Mike Scrafton) |
15 |
12/2(1) |
| Deputy Secretary Intelligence and Security (Mr Ron Bonighton) |
15 |
|
| (acting until 5 August 2002) |
1 |
1 |
| (confirmed from 6 August 2002) |
14 |
8/3(1) |
| Deputy Chief of Navy |
17 |
|
| (Rear Admiral Brian Adams - until 4 August 2002) |
1 |
1 |
| (Rear Admiral Rowan Moffitt - from 5 August 2002) |
16 |
12/4(1) |
| Deputy Chief of Army (Major General Frank Roberts) |
16 |
13/3(1) |
| Deputy Chief of Air Force (Air Vice Marshal Chris Spence) |
16 |
15/1(1) |
| First Assistant Secretary Capability, Investment and Resources
(Dr Ralph Neumann) |
17 |
17 |
| Head Capability Systems |
17 |
|
| (Major General David Hurley - until 5 December 2002) |
8 |
7/1(1) |
| (Air Vice Marshal Kerry Clarke - from 6 December 2002) |
9 |
4/5(1) |
| Head Defence Personnel Executive |
16 |
|
| (Air Commodore Roxley McLennan - acting from 16 July to
25 August 2002) |
2 |
2 |
| (Rear Admiral Brian Adams - from 26 August 2002) |
14 |
9/4(1) |
| Deputy Chief Information Officer (Rear Admiral Peter Clarke) |
15 |
10/5(1) |
| Department of Finance and Administration representative |
14 |
14 |
Note
- Substitute attended in place of member.
Defence Audit Committee
In 2002-03, members were Mr Paul McGrath (chair) and Mr Will Laurie (deputy
chair), both independent, external members of the committee, and Mr Mark Cunliffe,
Mr Peter Dunn, Mr Frank Lewincamp, Ms Shireane McKinnie and Brigadier Mike
Silverstone. The Chief Finance Officer and Inspector-General attended as advisers.
The Auditor-General, or a representative, attended as an observer. Defence
members of the Defence Audit Committee attend meetings in their capacities
as senior officers of Defence, not as representatives of their part of the
organisation and, thus, substitutes are not permitted.
The committee is responsible for:
- reviewing the preparation and audit of the Defence financial statements
and providing advice to the Secretary on the adequacy of these statements,
and the adequacy of accounting policies, procedures and systems;
- approving Defence annual internal audit plans, medium term audit strategy,
and evaluation programs and activity;
- reviewing internal and external audit reports and providing advice to
the Secretary on action to be taken;
- monitoring, and providing advice to the Secretary on risk management policies
and practices, including Defence enterprise risk management;
- reviewing the Defence fraud control plan and monitoring the implementation
of Group/Service fraud control plans; and
- monitoring the conduct of ethics awareness activities within Defence.
The Defence Audit Committee held 11 scheduled business meetings in 2002-03
(July, August, September, October, November, December, February, March, April,
May and June) and three extraordinary meetings (August, September and June).
Attendance was as follows:
| Position and Name |
Meetings Held |
Meetings Attended |
| Mr Paul McGrath |
14 |
13 |
| Mr Will Laurie |
14 |
12 |
| Mr Mark Cunliffe (from 2 September 2002) |
11 |
9 |
| Mr Peter Dunn |
14 |
12 |
| Mr Frank Lewincamp (until 19 August 2002) |
3 |
2 |
| Ms Shireane McKinnie |
14 |
11 |
| Brigadier Mike Silverstone (from 3 October 2002) |
9 |
8 |
| Mr Lloyd Bennett (Adviser) |
14 |
13 |
| Mr Claude Neumann (Adviser) |
14 |
13 |
Defence Information Environment Committee
In 2002-03, members were the Chief Information Officer (Chair), Chief Finance
Officer, Commander Australian Theatre, Deputy Chief of Navy, Deputy Chief
of Army, Deputy Chief of Air Force, Director Information Science Laboratory,
Head Capability Systems, Head Defence Personnel Executive, Head Electronic
Systems, Head Information Systems, Head Management Information Systems, Deputy
Chief Information Officer and Assistant Secretary Information Technology.
The Defence Information Environment Committee provides advice to the Chief
Information Officer on the governance of the Defence information environment
to meet Defence requirements. The role of the committee is to advise the Chief
Information Officer as the oordinating capability manager for the Defence
information environment, on monitoring the development and sustainment of
the current information environment, and guiding the design and development
of the information environment that will support future decision making in
Defence, including future joint command decision-making. The policy and strategic
plans approved by the Committee will inform enterprise-wide policy and planning
for Defence.
The Defence Information Environment Committee held seven scheduled business
meetings in 2002-03 (July, September, November, December, February, April
and May). Attendance was as follows:
| Position and Name |
Meetings Held |
Meetings Attended |
| Chief Information Officer (Mr Patrick Hannan) |
7 |
7 |
| Chief Finance Officer (Mr Lloyd Bennett) |
7 |
3/3(1) |
| Commander Australian Theatre (Rear Admiral Mark Bonser) |
7 |
0/7(1) |
| Deputy Chief of Navy |
7 |
|
| (Rear Admiral Brian Adams - until 4 August 2002) |
1 |
0/1(1) |
| (Rear Admiral Rowan Moffitt - from 5 August 2002) |
6 |
0/6(1) |
| Deputy Chief of Army (Major General Frank Roberts) |
7 |
0/7(1) |
| Deputy Chief of Air Force (Air Vice Marshal Chris Spence) |
7 |
0/7(1) |
| Director Information Sciences Laboratory (Mr Neil Bryans) |
7 |
5/2(1) |
| Head Capability Systems |
7 |
|
| (Major General David Hurley - until 5 December 2002) |
4 |
0/4(1) |
| (Air Vice Marshal Kerry Clarke - from 6 December 2002) |
3 |
2/1(1) |
| Head Defence Personnel Executive (Rear Admiral Brian Adams) |
6 |
1/5(1) |
| Head Electronic Systems (Ms Shireane McKinnie) |
7 |
6/1(1) |
| Head Information Systems (Mr David Kenny) |
7 |
5/2(1) |
| Head Management Information Systems (Mr Peter Dunn) |
7 |
4/3(1) |
| Deputy Chief Information Officer (Rear Admiral Peter Clarke) |
7 |
5/2(1) |
| Assistant Secretary Information Technology |
7 |
|
| (Mr Michael Mitchell - from 13 May 2002 to 16 July 2002) |
1 |
0/1(1) |
| (Mr Stewart Skelt - from 17 July 2002 to 25 August 2002) |
0 |
0 |
| (Mr Jeff Latimer - acting from 26 August 2002 to 25 September
2002) |
1 |
1 |
| (Ms Liz Milne - acting from 26 September 2002 to 19 January
2003) |
2 |
2 |
| (Mr John McCarthy - from 20 January 2003) |
3 |
2/1(1) |
Note
- Substitute attended in place of member.
Defence Occupational Health and Safety
Committee
In 2002-03, members were the Head Defence Personnel Executive (chair), Vice
Chief of the Defence Force, Deputy Chief of Navy, Deputy Chief of Army, Deputy
Chief of Air Force, Head Airborne Surveillance and Control (Defence Materiel
Organisation representative) and Head National Operations Division (Corporate
Services and Infrastructure Group representative).
The purpose of the committee is to oversee the Defence Occupational Health
and Safety Strategic Plan, assess Defence's occupational health and safety
performance, monitor risks to people's wellbeing, evaluate Defence-wide compliance
with occupational health and safety requirements and oversee the progression
and management of Defence-wide initiatives and improvements in occupational
health and safety performance.
The Defence Occupational Health and Safety Committee was established in June
2003 and met once in 2002-03. Attendance was as follows:
| Position and Name |
Meetings Held |
Meetings Attended |
| Head Defence Personnel Executive (Rear Admiral Brian Adams) |
1 |
1 |
| Vice Chief of the Defence Force (Vice Admiral Russ Shalders) |
1 |
1 |
| Deputy Chief of Navy (Rear Admiral Rowan Moffitt) |
1 |
1 |
| Deputy Chief of Army (Major General Frank Roberts) |
1 |
1 |
| Deputy Chief of Air Force (Air Vice Marshal Chris Spence)
|
1 |
1 |
| Head Airborne Surveillance and Control (Air Vice Marshal
Norm Gray) |
1 |
1 |
| Head National Operations Division (Mr Ken Moore) |
1 |
1 |
Defence People Committee
In 2002-03, members were the Head Defence Personnel Executive (chair), Vice
Chief of the Defence Force, Deputy Secretary Corporate Services, Chief Finance
Officer representative, Deputy Chief of Navy, Deputy Chief of Army, Deputy
Chief of Air Force, First Assistant Secretary Personnel (known as Deputy Head
Defence Personnel Executive until 25 August 2002) and Ms Noela L' Estrange,
an independent, external member.
The purpose of the committee is to provide a strategic focus on, and to be
an advocate for, the important place of people in supporting Defence capability.
The committee supports the Defence Committee by ensuring that Defence takes
a more strategic approach to people, and is responsible for providing advice,
and making recommendations, on strategic people issues to the Defence Committee
and Defence Capability and Investment Committee. The Committee is also responsible
for recommending to the Minister Assisting the Minister for Defence the allocation,
and monitoring the expenditure, of the $100m annual provision until 2005-06,
for people improvement initiatives.
The Defence People Committee met 12 times in 2002-03 (July, August, September,
October, November, December, twice in February, March, April, May and June).
Attendance was as follows:
| Position and Name |
Meetings Held |
Meetings Attended |
| Head Defence Personnel Executive |
12 |
|
| (Air Commodore Roxley McLennan - acting from 16 July to
25 August 2002) |
1 |
1 |
| (Rear Admiral Brian Adams - from 26 August 2002) |
11 |
10 |
| Vice Chief of the Defence Force (Vice Admiral Russ Shalders) |
12 |
10 |
| Deputy Secretary Corporate Services (Mr Alan Henderson) |
12 |
11/1(1) |
First Assistant Secretary Capability, Investment and Resources
Dr Ralph Neumann
(Chief Finance Officer representative until February 2003) |
8 |
7 |
First Assistant Secretary Budgets and Financial Planning
Mr George Veitch
(Chief Finance Officer representative from March 2003) |
4 |
4 |
| Deputy Chief of Navy |
|
|
| (Rear Admiral Brian Adams - until 4 August 2002) |
1 |
1 |
| (Rear Admiral Rowan Moffitt - from 5 August 2002) |
11 |
7/4(1) |
| Deputy Chief of Army (Major General Frank Roberts) |
12 |
9/3(1) |
| Deputy Chief of Air Force (Air Vice Marshal Chris Spence) |
12 |
10/2(1) |
| Deputy Head Defence Personnel Executive |
|
|
| Mr Felix Bleeser (acting to 25 August 2002) |
2 |
2 |
| First Assistant Secretary Personnel |
|
|
| Mr Peter Sharp (from 26 August 2002) |
9 |
7/2(1) |
| Ms Noela L'Estrange (independent member) |
12 |
12 |
Note
- Substitute attended in place of member.
